Document:

<PAGE>   1
                                                                   EXHIBIT 10.33

                            THE ANNUAL INCENTIVE PLAN
                                  FOR YEAR 2000

<PAGE>   2

<TABLE>
<CAPTION>
CONTENTS                                                                              PAGE
--------                                                                              ----

<S>                                                                                   <C>
At a Glance                                                                             1
     What is the Annual Incentive Plan?                                                 1
     Who is Eligible for This Plan?                                                     1
     How Does the Annual Incentive Plan Work?                                           1

Calculation of the Annual Incentive Plan Award                                          2
     Target Bonus Percentage                                                            2
     Performance Goals, the Target Bonus Percentage and the Initial                     2
         Individual Award Pool
     Financial Performance Goals                                                        3
     Safety Improvement Performance Goals                                               4
     Other Individual Performance Goals                                                 4
     Performance Goals Schematic                                                        5
     o   For Operating Company Employees                                                5
     o   For Corporate Staff Employees                                                  5
     How the AIP Initial Award Pool is Calculated when 100% of the                      6
         Financial Performance Goals Are Achieved
     How the AIP Initial Award Pool is Calculated for Other Achievement                 6
         Levels
     o   Maximums and Minimums                                                          6
     o   Formulas for Weighting Financial Performance                                   7
     Putting it Together - Two Examples                                                 8

Additional Guidelines for the Annual Incentive Plan                                    11
     Discretionary Adjustments                                                         11
     Some Special Circumstances                                                        11
     Making Payments                                                                   12

Administration Details                                                                 12
</TABLE>

<PAGE>   3

AT A GLANCE

WHAT IS THE ANNUAL INCENTIVE PLAN?

The Annual Incentive Plan (the "AIP" or the "Plan") provides key managers of
Allegheny Technologies Incorporated ("Allegheny Technologies") and its operating
companies with the opportunity to earn an incentive award when certain
pre-established goals are met at the corporate and operating company levels and
at the individual level.

WHO IS ELIGIBLE FOR THIS PLAN?

Generally, key managers who have a significant impact on the company's
operations will be eligible to participate in the Plan. Individuals eligible for
participation are determined annually, based on recommendations of the company
presidents, if applicable, and the Chief Executive Officer, with the approval of
the Personnel and Compensation Committee of the Company's Board of Directors
(the "Committee").

HOW DOES THE ANNUAL INCENTIVE PLAN WORK?

Under the Plan, key managers may earn an incentive award based on a percentage
of their base salary, depending on the extent to which pre-established
corporate, operating company and individual performance goals have been
achieved.

o    For purposes of the Plan, base salary is generally the manager's annual
     base salary rate as of the end of the year, excluding any commission or
     other incentive pay. For some special circumstances affecting the amount of
     base salary used in the Plan, see pages 11-12.

o    A target bonus percentage is used in calculating the incentive award. It is
     explained on the next page. Each participating manager will have a target
     bonus percentage.

o    The target bonus percentage will be adjusted (upward or downward) based on
     the extent to which financial performance goals are achieved.

Under the Plan, 80% of the incentive award payment will be based on corporate
and operating company financial performance, 10% will be based on safety
improvement, and 10% will be based on other individual performance.

o    At the end of the year, the Company will determine the individual award
     pool for each participating manager. The amount of the pool will be the
     individual's target bonus percentage, as adjusted to reflect the extent to
     which financial performance goals are achieved, times the individual's
     annual base salary rate.

o    Since 80% of the award is based on financial performance, each participant
     will receive 80% of the amount of his or her individual award pool. In
     addition, the participant has an opportunity to receive all or part of the
     remaining 20% of the pool, depending on the extent to which safety
     improvement and other individual performance objectives are achieved.

o    Incentive award payments will generally be distributed in cash after the
     year-end audit is complete.

                                     Page 1
<PAGE>   4

CALCULATION OF THE ANNUAL INCENTIVE PLAN AWARD

TARGET BONUS PERCENTAGE

The Plan establishes an incentive opportunity for each Plan participant,
calculated as a percentage of the manager's base salary. Each participant will
be provided with an initial percentage, referred to as a "target bonus
percentage."

Generally, the target bonus percentage is the percentage of base salary that can
be earned as an award under the Plan if 100% of the various performance goals
are achieved. For 2000, to reflect the stretch financial goals under the Plan,
if 100% of the performance goals are achieved, 150% of the target bonus
percentage can be earned.

If there is a change in the key manager's job position during the year that
changes the manager's target bonus percentage, the target bonus percentage used
in the award calculation will be determined as follows:

o    If the individual has at least six months of service in the new position,
     the newly adjusted target bonus percentage will be used in calculating the
     individual's award for the full year.

o    If the individual has less than six months of service in the new position,
     the individual's award for the year will be calculated on a pro-rata basis
     using the two different target bonus percentages weighted by length of
     service in each position during the year.

Target bonus percentages, performance goals and performance achievements will be
communicated to each eligible participant. The Committee may change the goals
and objectives for the Plan at any time.

PERFORMANCE GOALS, THE TARGET BONUS PERCENTAGE AND THE INITIAL INDIVIDUAL AWARD
POOL

An AIP award is based on the extent to which specified, preestablished
performance objectives are achieved. For 2000, AIP awards will be based on the
extent to which:

o    Allegheny Technologies and its operating companies achieve specified levels
     of Operating Profit and Return on Capital Employed - the financial goals,

o    Allegheny Technologies and its operating companies achieve specified levels
     of improvements in safety performance - the safety goals, and

o    The participant achieves his or her own other individual performance
     objectives.

At the end of the year, the Company will measure actual performance against each
of the preestablished objectives.

As a first step in the calculation, the Company will determine the extent to
which targeted levels of Operating Profit and Return on Capital Employed have
been achieved. The result achieved will be expressed as a percentage of that
financial performance goal.

                                     Page 2
<PAGE>   5

The Company will then establish an initial individual award pool for each
participant. The amount of this pool will be calculated by multiplying: (1) the
weighted percentage of each financial goal achieved, times (2) the individual's
target bonus percentage, times (3) the individual's annual base salary rate.

Since 80% of the actual award is based on financial performance, 80% of the
initial individual award pool will be paid to the participant. For the remaining
20% of the pool, the Company will review actual safety improvements and other
individual performance against the preestablished objectives to determine the
amount of the award the participant has earned.

o    Since 10% of the actual award is based on safety improvements, the
     participant can earn up to 10% of the initial individual award pool based
     on the extent to which safety objectives are achieved.

o    Since 10% of the actual award is based on other individual performance, the
     participant can earn up to 10% of the initial individual award pool based
     on the extent to which other individual performance objectives are
     achieved.

FINANCIAL PERFORMANCE GOALS

The financial performance goals consist of two equal measures: Operating Profit
("OP"), and Return on Capital Employed ("ROCE").

For operating company managers, 80% of financial performance will be based on
the performance of the participant's operating company, and 20% will be based on
corporate level performance. For corporate staff employees, financial
performance will be measured at the corporate level.

In other words, the financial performance measures used to calculate the
participant's initial individual award pool will be as follows:

o    For managers at the operating companies:
     --  OP achievements at the participant's operating company:       40%
     --  ROCE achievements at the participant's operating company:     40%
     --  OP achievements at Allegheny Technologies:                    10%
     --  ROCE achievements at Allegheny Technologies:                  10%

o    For corporate staff employees:
     --  OP achievements at the corporate level:                       50%
     --  ROCE achievements at the corporate level:                     50%

Each year, OP and ROCE goals will be set at the corporate and operating company
level based on the applicable business plan. With the concurrence of the Chief
Executive Officer and the Committee, OP and ROCE goals may be further weighted
within a particular operating company in accordance with its separate business
units ("SBU's") for key managers of those SBU's.

                                     Page 3
<PAGE>   6

SAFETY IMPROVEMENT PERFORMANCE GOALS

Up to 10% of the initial individual award pool can be earned based on the extent
to which preestablished levels of safety improvement are achieved. The Plan will
principally rely upon the percentage improvement in two metrics to measure
safety improvement: OSHA Total Recordable Incident Rate and the Lost Workday
Case Rate. Each safety metric will comprise up to 5% of the award.

Consistent with the overall business plan of Allegheny Technologies, the
preestablished safety goal under the Plan is a 25% improvement in safety vs.
1999 performance.

The table below shows the award percentages for various levels of improvement in
the OSHA Total Recordable Incident Rate and in the Lost Workday Case Rate:

<TABLE>
<CAPTION>
---------------------------- --------------------------------- ---------------------
     % OF GOAL REACHED           % IMPROVEMENT IN SAFETY             % AWARD
---------------------------- --------------------------------- ---------------------
<S>                              <C>                                 <C>
            32%                             8%                          1%
---------------------------- --------------------------------- ---------------------
            60%                            15%                          2%
---------------------------- --------------------------------- ---------------------
            80%                            20%                          3%
---------------------------- --------------------------------- ---------------------
            92%                            23%                          4%
---------------------------- --------------------------------- ---------------------
           100%                            25%                          5%
---------------------------- --------------------------------- ---------------------
</TABLE>

MAXIMUM AIP AWARD FOR SAFETY =10%

It is reached if the goals for OSHA Total Recordable Incident Rate and Lost Work
Day Case Rate are met.

Safety goals for individuals at specific sites can be adjusted to the needs of
their particular location as long as the collective goal for each operating
company is 25%.

For corporate staff employees, the AIP award percentage for safety improvement
is based on achieving a 25% safety improvement on the weighted average of all
ATI operating companies.

OTHER INDIVIDUAL PERFORMANCE GOALS

Other individual performance will determine a grant of up to 10% of the initial
individual award pool. Each year, managers will establish other individual
performance goals with their immediate supervisors. The achievement of other
individual performance goals will represent up to 10% of the initial individual
award pool.

                                     Page 4
<PAGE>   7

PERFORMANCE GOALS SCHEMATIC

The charts below show the overall relationships among the various performance
goals and the computed award.

For Operating Company Employees:

<TABLE>
<S>                        <C>               <C>          <C>          <C>                       <C>
---------------------                                                  -----------------         -----------------------
40% OP at                                                              Up to 10%                 Up to 5% OSHA
Operating                                                              Safety                    Total Recordable
Company                                                                Improvement               Incident Rate
---------------------      ---------------   ----------   ----------   -----------------         -----------------------
40% ROCE at                   Weighted        Target        Base       Up to 10%                 Up to 5% Lost
Operating                    % of Goals   x    Bonus   x   Salary   x  Individual                Workday
Company                       Achieved           %                     Performance               Case Rate
---------------------      ---------------   ----------   ----------   -----------------         -----------------------
10% OP                                                                 80%                       Individual
Corporate                                                              Based on                  Performance
---------------------                                                  Financial                 Based Upon
10% ROCE                                                               Results                   Goals Set with
Corporate                                                              -----------------         Supervisor
---------------------                                                                            -----------------------

</TABLE>

For Corporate Staff Employees:

<TABLE>
<S>                  <C>                <C>         <C>          <C>                         <C>
----------------                                                 ------------------          -----------------------
                                                                 Up to 10%                   Up to 5% OSHA
50%                                                              Safety                      Total Recordable
OP                                                               Improvement                 Incident Rate
Corporate            ----------------   ---------   ----------   ------------------          -----------------------
                        Weighted         Target       Base       Up to 10%                   Up to 5% Lost
----------------       % of Goals    x   Bonus   x   Salary   x  Individual                  Workday
                        Achieved           %                     Performance                 Case Rate
50%                  ----------------   ---------   ----------   ------------------          -----------------------
ROCE                                                             80%                         Individual
Corporate                                                        Based on                    Performance
                                                                 Financial                   Based Upon
----------------                                                 Results                     Goals Set with
                                                                 ------------------          Supervisor
                                                                                             -----------------------
 </TABLE>

                                     Page 5
<PAGE>   8

HOW THE AIP INITIAL AWARD POOL IS CALCULATED WHEN 100% OF THE FINANCIAL
PERFORMANCE GOALS ARE ACHIEVED

For the Year 2000, if 100% of the financial performance goals are achieved, then
150% of the target bonus percentage will generally be used to calculate the
initial individual award pool. In this example, assume that the operating
company manager's target bonus percentage is 20%. First, the impact on the
target bonus percentage is calculated at 150%:

<TABLE>
<CAPTION>
                                              Goal % of           Goal           Financial        Earned % of
                   Goals                      Award Pool       Achieved %        Weighting          Target *
                   -----                      ----------       ----------        ---------          --------
<S>                                           <C>              <C>               <C>              <C>
   OP - Operating Company                       40%               100%              150%               60%
   ROCE - Operating Company                     40%               100%              150%               60%
   OP - Corporate                               10%               100%              150%               15%
   ROCE - Corporate                             10%               100%              150%               15%
                                                ---                                                    ---
   Goals Total                                 100%                                                   150%
</TABLE>

     * Earned % of Target = Goal % of Award Pool X Financial Weighting

Then, the target bonus percentage of 20% is multiplied by 150% to produce an
initial individual award pool equal to 30% of base salary:

   Earned Percentage of Target                                  150%
   X  Target Bonus Percent                                       20%
                                                                 ---
   Equals Percentage of Salary for Initial                       30%
   Individual Award Pool

The sections below discuss the impact of achieving more or less than 100% of the
financial performance goals on the initial individual award pool, and they also
discuss the impact of other potential adjustments.

HOW THE AIP INITIAL AWARD POOL IS CALCULATED FOR OTHER ACHIEVEMENT LEVELS

The following section describes maximum and minimum achievement levels, and the
formulas used to weight achievements at all levels.

Maximums and Minimums

o    Generally, the maximum percentage used in calculating the initial
     individual award pool is 200%, and the overall maximum incentive award that
     an individual can earn under the weighting formula is 200% of his or her
     target bonus percentage.

o    Where 75% of a financial performance goal is achieved, only 25% of that
     goal's share will be allocated to the initial individual award pools.

o    Where less than 75% of a financial performance goal is achieved, no amount
     of that goal will be allocated to the initial individual award pools.

                                     Page 6
<PAGE>   9

o    If less than 75% of OP is achieved at the operating company, no individual
     award pools will be established for participants at that operating company
     regardless of other financial performance.

o    If less than 75% of OP is achieved at the corporate level, no individual
     award pool will be established for participants at any operating company or
     for corporate staff employees regardless of other financial performance.

Formulas for Weighting Financial Performance

The following formulas will be used to weight financial performance under the
Plan:

Formula A:

     If 75% to 100% of a goal is achieved, the Percent Allocated for that goal
     equals the Percentage of Goal Achieved (i.e. Actual Performance divided by
     Planned Performance) minus 75% (which is the threshold level of
     performance) times 5, plus 25%.

     Formula A examples:

     1.  Assumption: Percentage of Goal Achieved      = 90%
         Weighted Percent for that Goal               = [(90% - 75%) x 5] + 25%
                                                      = [15% x 5] + 25%
                                                      = 75% + 25%
                                                      = 100%

     2.  Assumption: Percentage of Goal Achieved      = 85%
         Weighted Percent for that Goal               = [(85% - 75%) x 5] + 25%
                                                      = [10% x 5] + 25%
                                                      = 50% + 25%
                                                      = 75%

Formula B:

     If over 100% of goal is achieved, the Percent Allocated for that goal
     equals the Percentage of Goal Achieved (i.e. Actual Performance divided by
     Planned Performance) minus 100% times 2.5, plus 150%. In all cases, the
     maximum Percent Earned of 200% results when 120% of that goal is achieved.

     Formula B examples:

1.       Assumption: Percentage of Goal Achieved  = 130%
         Weighted Percent for that Goal           = [(130% - 100%) x 2.5] + 150%
                                                  = [30% x 2.5] + 150%
                                                  = 75% + 150%
                                                  = 225%

                  However, the maximum target bonus is capped at 200%.

2.       Assumption: Percentage of Goal Achieved  = 105%
         Weighted Percent for that Goal           = [(105% - 100%) x 2.5] + 150%
                                                  = [5% x 2.5] + 150%
                                                  = 12.5% + 150%
                                                  = 162.5%

                                     Page 7
<PAGE>   10

PUTTING IT TOGETHER

Here are two examples of how the award might be determined under the Plan.

Example One:

Assume that the operating company manager's annual salary is $80,000 and that
the manager's target bonus percentage is 20% of base salary. Also, assume actual
performance is:

o    90% of planned Operating Profit, or OP, goals at the operating company;

o    130% of planned Return on Capital Employed, or ROCE, goals at the operating
     company;

o    105% of planned Operating Profit, or OP, goals at the corporate level, and

o    85% of planned Return on Capital Employed, or ROCE, goals at the corporate
     level.

The first step in this example is to calculate the impact of the actual
financial performance on the target bonus percentage and, in turn, upon the
initial individual award pool.

Formula A on page 7 would be used for weighting OP at the operating company and
ROCE at the corporate level, because 100% or less of those goals were achieved.
Formula B on page 7 would be used for weighting the ROCE goal at the operating
company and OP at the corporate level, because over 100% of those goals were
achieved. Following the formulas, the target bonus percentage is adjusted by
143.75%:

<TABLE>
<CAPTION>
                                               Goal % of         Goal            Financial        Earned % of
                   Goals                       Award Pool     Achieved %         Weighting          Target *
                   -----                       ----------     ----------         ---------          ------
<S>                                            <C>            <C>               <C>               <C>
   OP - Operating Company                          40%            90%            100% (A)              40%
   ROCE - Operating Company                        40%           130%            200% (B)              80%
   OP - Corporate                                  10%           105%          162.5% (B)           16.25%
   ROCE - Corporate                                10%            85%             75% (A)             7.5%
                                                  ---                                              ------
   Goals Total                                    100%                                             143.75%
</TABLE>

     *Earned % of Target = Goal % of Award Pool X Financial Weighting

The target bonus percentage of 20% is multiplied by 143.75% to produce an
initial individual award pool equal to 28.75% of base salary:

   Earned Percentage of Target                                 143.75%
   X  Target Bonus Percent                                         20%
                                                               ------
   Equals Percentage of Salary for Initial                      28.75%
   Individual Award Pool

With this first example, the initial incentive award pool would be calculated as
28.75% of the manager's base salary of $80,000, or $23,000.

                                     Page 8
<PAGE>   11

The second step in this example is to determine the amount of the initial
individual award pool that the manager will receive.

As explained above, since 80% of the actual award is based on financial
performance, 80% of the initial individual award pool will be paid to the
participant. For the remaining 20% of the pool, the Company will review actual
safety improvements and other individual performance against the preestablished
objectives to determine the amount of the award the participant has earned.

o    Since 10% of the actual award is based on safety improvements, the
     participant can earn up to 10% of the initial individual award pool based
     on the extent to which safety objectives are achieved.

o    Since 10% of the actual award is based on other individual performance, the
     participant can earn up to 10% of the initial individual award pool based
     on the extent to which other individual performance objectives are
     achieved.

For purposes of the safety improvement metrics, assume in this example that the
operating company has achieved a 23% improvement in the OSHA Total Recordable
Incident Rate ("TRIR") and a 25% improvement in the Lost Workday Case Rate
("LWCR"). Accordingly, from the table on page 4, the percentage of the safety
awards based on the safety improvements would be 4% and 5%, respectively.

Finally to complete this first example, assume that the manager has earned a 9%
award based upon other individual performance. The total award paid in this
example would therefor be $22,540:

<TABLE>
<CAPTION>
                       Award                                   Award              Award         Allocated
                Allocation Criteria                         Percentages            Pool           Award
                -------------------                         -----------            ----           -----
<S>                                                         <C>                   <C>           <C>
    Financial Results                                            80%              $23,000         $18,400
    Safety Improvement - TRIR                                     4%              $23,000            $920
    Safety Improvement - LWCR                                     5%              $23,000          $1,150
    Other Individual Performance                                  9%              $23,000          $2,070
                                                                                                   ------
    Total Paid                                                                                    $22,540
</TABLE>

Example Two:

Assume that the operating company manager's annual salary is again $80,000 and
the manager's target bonus percentage is 20% of base salary but that the actual
performance is:

o    75% of planned Operating Profit, or OP, goals at the operating company,

o    100% of planned Return on Capital Employed, or ROCE, goals at the operating
     company,

o    75% of planned Operating Profit, or OP, goals at the corporate level, and

o    85% of planned Return on Capital Employed, or ROCE, goals at the corporate
     level.

                                     Page 9
<PAGE>   12

The first step in this second example is to calculate the impact of the actual
financial performance on the target bonus percentage and, in turn, upon the
initial individual award pool.

Formula A on page 7 would be used for weighting all of the financial
performance, because 100% or less of the goals were achieved.

<TABLE>
<CAPTION>
                                               Goal % of         Goal            Financial        Earned % of
                   Goals                       Award Pool     Achieved %         Weighting          Target *
                   -----                       ----------     ----------         ---------          ------
<S>                                            <C>            <C>               <C>               <C>
   OP - Operating Company                        40%               75%             25% (A)              10%
   ROCE - Operating Company                      40%              100%            150% (A)              60%
   OP - Corporate                                10%               75%             25% (A)             2.5%
   ROCE - Corporate                              10%               85%             75% (A)             7.5%
                                                ---                                                   ----
   Goals Total                                  100%                                                    80%
</TABLE>

     * Earned % of Target = Goal % of Award Pool X Financial Weighting

The target bonus percentage of 20% is multiplied by 80% to produce an initial
individual award pool equal to 16% of base salary:

   Earned Percentage of Target                                   80%
   X  Target Bonus Percent                                       20%
                                                                ---
   Equals Percentage of Salary for Initial                       16%
   Individual Award Pool

With this second example, the initial incentive award pool would be calculated
as 16% of the manager's base salary of $80,000, or $12,800.

The second step in this example is to determine the amount of the initial
individual award pool the manager will receive.

As explained above, since 80% of the actual award is based on financial
performance, 80% of the initial individual award pool will be paid to the
participant. For the remaining 20% of the pool, the Company will review actual
safety improvements and other individual performance against the preestablished
objectives to determine the amount of the award the participant has earned.

o    Since 10% of the actual award is based on safety improvements, the
     participant can earn up to 10% of the initial individual award pool based
     on the extent to which safety objectives are achieved.

o    Since 10% of the actual award is based on other individual performance, the
     participant can earn up to 10% of the initial individual award pool based
     on the extent to which other individual performance objectives are
     achieved.

                                    Page 10
<PAGE>   13

For purposes of the safety improvement metrics, assume in this example that the
operating company has achieved a 25% improvement in the OSHA Total Recordable
Incident Rate ("TRIR") and a 25% improvement in the Lost Workday Case Rate
("LWCR"). Accordingly, from the table on page 4, the percentage of the award
based on safety improvements would be 5% and 5%, respectively.

Finally to complete this second example, assume that the manager has earned a
10% award based upon other individual performance. The total award paid in this
example would therefor be $12,800:

<TABLE>
<CAPTION>
                       Award                                   Award              Award         Allocated
                Allocation Criteria                         Percentages            Pool           Award
                -------------------                         -----------            ----           -----
<S>                                                         <C>                   <C>           <C>
   Financial Results                                           80%               $12,800          10,240
   Safety Improvement - TRIR                                    5%               $12,800            $640
   Safety Improvement - LWCR                                    5%               $12,800            $640
   Other Individual Performance                                10%               $12,800          $1,280
                                                                                                   ------
   Total Paid                                                                                     $12,800
</TABLE>

ADDITIONAL GUIDELINES FOR THE ANNUAL INCENTIVE PLAN

In any year, a minimum Operating Profit (OP) of 75% of plan at the corporate
level must be achieved for annual incentives to be paid regardless of other
factors.

The total of the incentive awards in any given year cannot exceed 5% of the
Operating Profit of Allegheny Technologies or the operating company, as the case
may be. If, in any year, awards exceed 5% of Operating Profit, awards of the
affected company will be reduced to eliminate the excess.

DISCRETIONARY ADJUSTMENTS

In some cases, the Plan allows for discretionary adjustments of up to +20% or
-20% of an individual's calculated award. However, discretionary adjustments for
all eligible managers of the affected company cannot exceed +5% of the aggregate
calculated awards for that company.

SOME SPECIAL CIRCUMSTANCES

The above formulas generally determine the amount of the incentive award for the
year. Other factors that may affect the actual award follow:

o    If a manager leaves the company due to retirement, death, or disability, an
     award will be calculated based on the actual base salary earned during the
     year in which the manager left--so long as the manager worked at least six
     months of that year.

o    If a manager leaves the company before the end of the plan year for any
     other reason, the manager will not receive a bonus award for that year.

                                    Page 11
<PAGE>   14

o    If a manager voluntarily leaves the company after the end of the year but
     before the award is paid, the manager would receive any bonus due unless
     the employment is terminated for cause. If employment is terminated for
     cause, the manager would not be entitled to receive an award under the
     Plan.

o    Managers who are hired mid-year may earn a pro-rated award for that year,
     based on the salary earned during that year. However, managers with less
     than two months service in a plan year (i.e. hired after October 31) would
     not be eligible for an award for that year.

o    If the manager received an adjustment in base salary due to a change in job
     position (i.e. other than a merit increase), the manager's base salary for
     plan purposes will be the sum of (1) the product of the number of months
     prior to the adjustment times the rate of monthly base salary immediately
     prior to the adjustment, and (2) the product of the number of months after
     the adjustment times the rate of monthly base salary as of the end of the
     Plan Year.

MAKING PAYMENTS

All incentive award payments will generally be paid in cash, less applicable
withholding taxes, after the year-end audit is complete. This is expected to
occur by no later than March 15.

ADMINISTRATION DETAILS

This summary relates to the Annual Incentive Plan (AIP) of Allegheny
Technologies Incorporated and its subsidiaries. The Plan is administered by the
Committee, which has full authority to:

o    Interpret the Plan;

o    Designate eligible participants and categories of eligible participants;

o    Set the terms and conditions of incentive awards; and

o    Establish and modify administrative rules for the Plan.

Plan participants may obtain additional information about the plan and the
Committee from:

Senior Vice President,
General Counsel and Secretary
Allegheny Technologies Incorporated
1000 Six PPG Place
Pittsburgh PA  15222 5479
Phone:  412-394-2836                        Fax:  412-394-2837

The Plan will remain in effect until terminated by the Committee. The Committee
may also amend the plan at its discretion.

The Plan is not subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA) and is not "qualified" under Section 401(a) of the
Internal Revenue Code.

                                    Page 12<PAGE>   1
                                                                     Exhibit 4.1

                            KINDER MORGAN G.P., INC.

                                 CERTIFICATE OF
                   VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

         The undersigned, C. Park Shaper, the Vice President and Chief Financial
Officer of Kinder Morgan G.P., Inc. (the "General Partner"), in its capacity as
the general partner of Kinder Morgan Energy Partners, L.P. (the "Partnership"),
does hereby establish the terms of certain debt securities of the Partnership
under the Indenture, dated as of January 2, 2001 (the "Indenture"), between the
Partnership and First Union National Bank, as Trustee, as follows:

         1. The title of the securities shall be "6.75% Notes due March 15,
2011" (the "6.75% Notes") and "7.40% Notes due March 15, 2031" (the "7.40%
Notes" and collectively with the 6.75% Notes, the "Notes");

         2. The aggregate principal amount of the 6.75% Notes and 7.40% Notes
which may be initially authenticated and delivered under the Indenture shall be
limited initially to a maximum of $700,000,000 and $300,000,000, respectively,
except for 6.75% Notes and 7.40% Notes authenticated and delivered upon
registration of, or in exchange for, or in lieu of, other 6.75% Notes and 7.40%
Notes, respectively, subject to the right of the Partnership to issue additional
principal amount of 6.75% Notes or 7.40% Notes from time to time;

         3. The final maturities of the principal of the 6.75% Notes and the
7.40% Notes are March 15, 2011 and March 15, 2031, respectively; and there is no
sinking fund requirement for the Notes;

         4. The 6.75% Notes and the 7.40% Notes shall bear interest at the rate
of 6.75% per annum and 7.40% per annum, respectively, which interest shall
accrue, in both instances, from March 12, 2001, or from the most recent Interest
Payment Date (as defined in the Indenture) to which interest has been paid or
duly provided for, which dates shall be March 15 and September 15 of each year,
and such interest shall be payable semi-annually on March 15 and September 15,
commencing on September 15, 2001, to holders of record at the close of business
on the March 1 or September 1, respectively, next preceding each such Interest
Payment Date;

         5. The principal of, premium, if any, and interest on, the Notes shall
be payable by the Partnership at the office or agency of the Partnership
maintained in The Borough of Manhattan in The City of New York, which initially
shall be the office of the Trustee;

         6. The principal of, and interest on, the Notes shall be payable by
transfer of immediately available funds to a bank account in The Borough of
Manhattan in The City of New York designated by the Holder in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts;

         7. The Partnership, at its option, may at any time redeem all or any
portion of the
<PAGE>   2

6.75% Notes or the 7.40% Notes, at a redemption price equal in each case to the
greater of (i) 100% of their respective principal amount and (ii) the sum of the
present values of the remaining scheduled payments of principal and interest
thereon discounted to the date of redemption on a semiannual basis (assuming a
360-day year consisting of twelve 30-day months) at the Treasury Rate plus 25
basis points for the 6.75% Notes and 30 basis points for the 7.40% Notes, plus
accrued and unpaid interest on the principal amount being redeemed to the date
of redemption;

         "Comparable Treasury Issue" means the United States Treasury security
selected by the Quotation Agent as having a maturity comparable to the remaining
term of the series of Securities to be redeemed that would be utilized, at the
time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of such series of Securities.

         "Comparable Treasury Price" means, with respect to any redemption date
for a series of Securities, the average of two Reference Treasury Dealer
Quotations for such redemption date.

         "Quotation Agent" means the Reference Treasury Dealer the Partnership
appoints.

         "Reference Treasury Dealer" means each of Merrill Lynch Government
Securities Inc. and Chase Securities Inc. and their respective successors;
provided, however, that if either of the foregoing shall cease to be a primary
U.S. Government securities dealer in New York City (a "Primary Treasury
Dealer"), the Partnership will substitute therefor another Primary Treasury
Dealer.

         "Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any redemption date, the average, as determined by
the Trustee, of the bid and asked price for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding such redemption date.

         "Treasury Rate" means, with respect to any redemption date, (1) the
yield, under the heading which represents the average for the immediately
preceding week, appearing in the most recently published statistical release
designated "H.15 (519)" or any successor publication which is published weekly
by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded United States Treasury securities adjusted to constant
maturity under the caption "Treasury Constant Maturities," for the maturity
corresponding to the Comparable Treasury Issue (if no maturity is within three
months before or after the maturity date of the series of Securities to be
redeemed, yields for the two published maturities most closely corresponding to
the Comparable Treasury Issue shall be determined, and the Treasury Rate shall
be interpolated or extrapolated from such yields on a straight-line basis,
rounding to the nearest month) or (2) if such release (or any successor release)
is not published during the week preceding the calculation date or does not
contain such yields, the rate per year equal to the semiannual equivalent yield
to maturity of
<PAGE>   3

the Comparable Treasury Issue, calculated using a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date. The Treasury Rate will be
calculated on the third Business Day preceding the redemption date.

         8. First Union National Bank is appointed to be trustee for the Notes,
and First Union National Bank, and any other banking institution hereafter
selected by the officers of the Partnership, are appointed agents of the
Partnership (a) where the Notes may be presented for registration of transfer or
exchange, (b) where notices and demands to or upon the Partnership in respect of
the Notes or the Indenture may be made or served and (c) where the Notes may be
presented for payment of principal and interest;

         9. The 6.75% Notes and the 7.40% Notes are approved in the form
attached hereto as Exhibit A and Exhibit B, respectively, and shall be issued
upon original issuance in whole in the form of book-entry Global Securities (as
defined in the Indenture), and the Depository (as defined in the Indenture)
shall be the Depository Trust Company, New York, New York; and

         10. The price to be received by the Partnership from the Underwriters
for the 6.75% Notes and the 7.40% Notes shall be 99.055% and 98.873%,
respectively.

         IN WITNESS WHEREOF, I have signed my name as of this 12th day of March,
2001.

                                        KINDER MORGAN G.P., INC.

                                        By: /s/ C. Park Shaper
                                           -------------------------------------
                                                C. Park Shaper
                                                Vice President and Chief
                                                Financial Officer

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