Document:

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                                                                Exhibit 10.2.7.6

                      SEPARATION AGREEMENT & MUTUAL RELEASE

               This Separation Agreement and Release of Claims (the "Agreement")
is entered into by and between Claudio Pinkus ("Pinkus") and Ask Jeeves, Inc.
(the "Company"), each a "Party" and collectively the "Parties."

                                    RECITALS

               WHEREAS, Pinkus has been employed by the Company commencing on
June 18, 1999, and currently is the Company's Chief Strategy Officer;

               WHEREAS, Pinkus's employment with the Company shall terminate
effective August 28, 2003 (the "Termination Date");

               WHEREAS, the Parties wish to enter into an agreement to clarify
and resolve any disputes that may exist between them arising out of the
employment relationship and its termination, and any continuing obligations of
the Parties to one another following the end of the employment relationship;

               NOW, THEREFORE, for and in consideration of the promises and
undertakings described below, the Parties agree as follows:

                                    AGREEMENT

               1. PAYMENT OF SALARY THRU TERMINATION. Pinkus's base salary at
the time of termination is Two Hundred Twenty-Five Thousand Dollars ($225,000)
per year ("Base Salary"). The Company shall continue to provide Pinkus his Base
Salary and benefits through the Termination Date.

               2. OTHER PAYMENTS. In consideration of the promises and covenants
contained herein, and provided Pinkus executes and does not revoke this
Agreement, the Company agrees to provide Pinkus the following compensation and
benefits:

                      a.     His Base Salary for a period of nine (9) months
                             following his termination date, less applicable
                             withholdings and deductions. The payments following
                             the Termination Date will be paid by the Company to
                             Pinkus according to the Company's usual payroll
                             schedule and practices;

                      b.     A lump sum payment of Sixty-Seven Thousand Five
                             Hundred Dollars ($67,500), less any applicable
                             withholdings and deductions, which is equivalent to
                             seventy-five percent (75%) of Pinkus's target bonus
                             for fiscal year 2003, payable within twenty (20)
                             days following execution of this Agreement;

                      c.     If Pinkus elects to continue his health insurance
                             coverage under the Consolidated Omnibus Budget
                             Reconciliation Act of 1985, as amended ("COBRA")
                             following the termination of his employment, the
                             Company shall pay Pinkus's monthly premium under
                             COBRA until the earlier of:

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                             (i) nine (9) months following the Termination Date,
                             (ii) the first date that he is covered under
                             another employer's health benefit program without
                             exclusion for any pre-existing medical condition,
                             or (iii) the end of his statutory entitlement to
                             health care coverage pursuant to COBRA;

                      d.     Reasonable customary executive outplacement
                             assistance for up to six (6) months after September
                             1, 2004;

                      e.     The immediate vesting of Pinkus' Spring 2002 Focal
                             Review Option (the vested portion of such option
                             currently covers 50,000 shares of Company common
                             stock and the otherwise unvested portion of such
                             option currently covers 100,000 shares of Company
                             common stock, and the exercise price of such option
                             is currently $1.21 per share)(the "Focal Options");
                             provided that such Focal Option shall otherwise
                             continue in accordance with its terms and shall,
                             without limiting the generality of the foregoing,
                             be subject to termination (to the extent not
                             previously exercised) at the end of the limited
                             post-termination exercise period specified in the
                             applicable option agreement. Notwithstanding the
                             foregoing, Pinkus acknowledges and agrees that such
                             immediate vesting shall not occur in the event that
                             he revokes this Agreement prior to the Effective
                             Date and Pinkus further agrees that he will not
                             exercise such Focal Options or sell the underlying
                             shares until after the Effective Date of this
                             Agreement.

               3. CONSULTING AND OTHER OBLIGATIONS FOLLOWING TERMINATION. From
August 29, 2003 through December 31, 2003, Pinkus agrees to provide consulting
services on behalf of the Company in accordance with the Ask Jeeves Consulting
Agreement between the Company and Pinkus dated August 29, 2003 (the "Consulting
Agreement").

        In addition, aside from his consulting obligation to the Company, Pinkus
agrees to provide information for, and reasonably assist the Company in the
preparation of, Securities and Exchange Commission filings concerning the period
in which Pinkus was employed with the Company.

        The Company also agrees that Pinkus may keep his Sony Vaio notebook
computer and his TREO cell phone.

               4. STOCK AND DEFERRED COMPENSATION PLANS. Nothing in this
agreement is meant to, or does, supersede, alter or modify any rights or
benefits to which Pinkus may become entitled under the Ask Jeeves International
Deferred Compensation Agreement entered into in February 2002 by and among
Pinkus, the Company, and George Lichter (the "Deferred Compensation Plan").
Pinkus acknowledges and agrees that he has no right to any incentive payment,
bonus, security, derivative security, or other compensation or benefit pursuant
to that certain Incentive Agreement dated as of January 2, 2001 by and between
Pinkus and the Company, as subsequently amended.

               5. CONFIDENTIAL INFORMATION. Pinkus hereby acknowledges and
agrees that he has agreed to and is bound by the terms and obligations under the
Confidentiality of Information and

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Inventions Agreement, attached hereto as Exhibit A, and that he agrees to
continue to be bound by those terms and obligations.

               6. CESSATION OF BENEFITS. Pinkus's participation in all of the
Company's benefits and incidents of employment shall cease on the Termination
Date, except as noted in Section 2 herein.

               7. RELEASE BY PINKUS. In consideration of the benefits provided
to Pinkus under Section 2 herein, Pinkus fully and forever releases, waives,
discharges (and promises not to sue or otherwise institute or cause to be
instituted) any legal or administrative proceedings against the Company, and any
of its officers, directors, attorneys, insurers, shareholders, predecessors,
successors, affiliated or related companies, agents, current and former
employees, representatives, attorneys and other agents, and assignees thereof
("Releasees"), with respect to any and all liabilities, claims, demands,
contracts, debts, obligations and causes of action of any nature, kind, and
description, whether in law, equity or otherwise, whether or not now known or
ascertained, which currently do or may exist, including without limitation any
matter, cause or claim arising out of or related to or connected with Pinkus's
hire, employment with the Company or its predecessor, or the termination
therefrom, as well as any act or omission by the Company, and any of its
officers, directors, attorneys, insurers, shareholders, predecessors,
successors, affiliated or related companies, agents, employees, and assignees
thereof, occurring on or before the date of this Agreement. Such liabilities,
claims, demands, contracts, debts, obligations and causes of action, include but
are not limited to any claims for unpaid or late wages, severance, stock
options, retirement, pension benefits, or other benefits, penalties, breach of
contract, breach of the covenant of good faith and fair dealing, infliction of
emotional distress, misrepresentation, fraud, claims under Title VII of the
Civil Rights Act, under the California Fair Employment and Housing Act, under
the Employment Retirement Income and Security Act, under the California Labor
Code, and under any other statutory or common law claim relating to employment,
and any act or omission by the Company occurring on or before the date of this
Agreement except any claims for: (1) rights under California Labor Code section
2802, (2) workers' compensation insurance benefits, and (3) indemnification (if
available) pursuant to the Company's certificate or incorporation or bylaws, the
Company's indemnification agreement with Pinkus, or any insurance policy
maintained by the Company with respect to, and for the benefit of, Pinkus as an
officer or employee (or former officer or employee) of the Company or any of its
subsidiaries (including directors' and officers' liability insurance, errors and
omissions insurance and other similar insurance, if any), it being understood
and agreed that nothing herein shall require the Company to purchase or maintain
any such insurance or limit the Company's rights to amend its certificate of
incorporation and bylaws in accordance with, and subject to the limitations of,
applicable law. Notwithstanding the foregoing, the release in this Section 7
shall not apply to the continuing liabilities and obligations created by or
referred to in this Agreement, including the payment obligations in Section 1
and 2 and the liabilities and obligations under the Focal Options, Deferred
Compensation Plan, and Consulting Agreement.

               8. RELEASE BY THE COMPANY. The Company fully and forever
releases, waives, discharges (and promises not to sue or otherwise institute or
cause to be instituted) any legal or administrative proceedings against either
Pinkus or any of his heirs, executors, administrators, representatives,
attorneys and other agents, with respect to any and all liabilities, claims,
demands, contracts, debts, obligations and causes of action of any nature, kind,
and description, whether in law, equity or otherwise, whether or not now known
or ascertained, which currently do or may exist, including without limitation
any matter, cause or claim arising out of or related to or connected to

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his employment with the Company and with any predecessor thereof, and any act or
omission by Pinkus occurring on or before the date of this Agreement except for
any claim against Pinkus for fraud, misappropriation of the Company's property
or assets; willful misconduct in connection with a communication to any
government agency or entity; any breach by Pinkus of his fiduciary duties, or a
breach of the Confidential Information and Invention Assignment Agreement.
Notwithstanding the foregoing, the release in this Section 8 shall not apply to
the continuing liabilities and obligations created by or referred to in this
Agreement, including the liabilities and obligations under Consulting Agreement.

               9. WAIVER: CIVIL CODE SECTION 1542. The Parties represent that
they are not aware of any claim other than the claims that are released by this
Agreement. The Parties acknowledge that they have been advised by legal counsel
and are familiar with the provisions of California Civil Code Section 1542,
which provides as follows:

               A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
               DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
               EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY
               AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

               The Parties agree to expressly waive any rights they may have
under California Civil Code Section 1542, as well as under any other federal or
state statute or common law principles of similar effect.

               10. ADEA RELEASE AND WAIVER. Pinkus acknowledges that he is
waiving and releasing any rights he may have under Age Discrimination in
Employment Act (ADEA), as amended, and that the waiver and release of these
rights is knowing and voluntary. Pinkus and the Company agree that this waiver
and release do not apply to any rights or claims that may arise under ADEA after
the date this Agreement is signed.

               11. TIME TO CONSIDER; REVOCATION PERIOD; EFFECTIVE DATE. In
accordance with the federal Older Workers Benefit Protection Act of 1990 and the
ADEA, and any amendments thereto, Pinkus represents and acknowledges that he has
been made aware of the following:

        (a) he has the right to consult with an attorney before signing this
Agreement and agreeing to the release set forth herein;

        (b) he is not otherwise entitled to the consideration provided in this
Agreement;

        (c) he has seven (7) days after signing this Agreement to revoke it; and

        (d) he has twenty-one (21) days from delivery of this Agreement to him
to consider this release. Pinkus agrees and acknowledges that if he chooses to
sign this Agreement before 21 days after he received it, that he has done so
voluntarily, and in that event, Pinkus agrees to sign and deliver to Company
Exhibit C to this Agreement.

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        Pinkus further understands that the Effective Date of this Agreement
shall be the eighth (8th) day after he has signed the Agreement, provided that
he has delivered his signature on this Agreement to the Company and he has not
revoked it during the seven (7) days after he signed it. The Company and Pinkus
agree to use reasonable commercial efforts to effectuate this Agreement in a
timely manner and to deal with any administrative matters as expeditiously as
possible.

               12. CONFIDENTIALITY. Except as may otherwise be required by
applicable law, rule, regulation or order, or as required by any governmental
agency or tribunal, Pinkus agrees to maintain in complete confidence the
contents and terms of this Agreement and to disclose the contents and terms of
this Agreement only to members of Pinkus's immediate family and those attorneys,
accountants, tribunals and governmental entities who have a reasonable need to
know the contents and terms of this Agreement. The Company agrees, that except
as required law, rule, regulation, order, or as required by any governmental
agency or tribunal, or in the Company's good faith, the Company agrees to
maintain in complete confidence the contents and terms of this Agreement, and to
disclose the contents and terms of this Agreement only to those employees of the
Company, who have a reasonable need to know the contents and terms of this
Agreement, or to third parties considering a potential transaction with the
Company in connection with their "due diligence" pursuant to a customary
confidentiality agreement.

               13. NO PENDING OR FUTURE LAWSUITS. The Parties represent to each
other that they have no lawsuits, claims, or actions pending in their name, or
on behalf of any other person or entity, against each other or any other person
or entity referred to herein. The Parties also represent to each other that as
of the date of this Agreement, they do not have any basis for and do not intend
to bring any claims on their behalf or on behalf of any other person or entity
against each other or any other person or entity referred to herein.

               14. NO PRIOR ASSIGNMENTS. Pinkus hereby represents and warrants
that he has not assigned or transferred, or purported to assign or transfer, to
any third person or entity any claim, right, liability, demand, obligation,
expense, action or causes of action being waived or released pursuant to this
Agreement.

               15. NON-DISPARAGEMENT. Pinkus agrees not to make any derogatory
statements about the Company or any of its current or former agents, attorneys,
representatives, employees, officers, directors, successors, predecessors,
assigns, parent corporations, subsidiaries, or affiliated companies.

               16. RESTRICTIVE COVENANTS. Pinkus acknowledges that the Company
has invested substantial time, money and resources in the development and
retention of its inventions, confidential information (including trade secrets),
customers, accounts and business partners, and further acknowledges that during
the course of his employment with the Company, he has had and will continue to
have access to the Company's inventions and confidential information (including
trade secrets), and has been introduced to existing and prospective customers,
accounts and business partners of the Company. Pinkus acknowledges and agrees
that any and all "goodwill" associated with any existing or prospective
customer, account or business partner belongs exclusively to the Company,
including, but not limited to, any goodwill created as a result of direct or
indirect contacts or relationships between Pinkus and any existing or
prospective customers, accounts or business partners. Pinkus further
acknowledges that the Company has operations and conducts business on a global
scale.

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               In recognition of this, Pinkus covenants and agrees that during
his employment and consulting arrangement with the Company and for a period of
either (i) one (1) year following the Termination Date or (ii) six months
following the termination of his Consulting Agreement, whichever is longer, he
will not (without the prior written consent of the Board of Directors of the
Company): (i) participate in any capacity (whether as an employee, agent,
servant, owner, partner, consultant, independent contractor, representative,
stockholder or in any other capacity whatsoever) with any of the six companies
listed on Exhibit B hereto; (ii) entice, solicit or encourage any Company
employee to leave the employ of the Company or any independent contractor to
sever its engagement with the Company; or (iii) directly or indirectly, entice,
solicit or encourage any client, customer, prospective client or customer,
vendor, strategic partner or business associate of the Company to cease doing
business with the Company, reduce its relationship with the Company or refrain
from establishing or expanding a relationship with the Company. Pinkus agrees
that the Company may suffer irreparable harm should he breach this Section 16,
and therefore agrees that the Company may seek and obtain injunctive relief as a
remedy for any such breach by him.

               17. NO ADMISSION. Nothing contained in this Agreement shall
constitute, be construed or be treated as an admission of liability or
wrongdoing by the Company or any of its current or former agents, attorneys,
representatives, employees, officers, directors, successors, predecessors,
assigns, parent corporations, subsidiaries, or affiliated companies.

               18. RESULTS OF NEGOTIATION; KNOWING AND VOLUNTARY EXECUTION. The
Parties hereby acknowledge that this Agreement is the results of negotiation
between them, and that each has read and understands the foregoing Agreement and
that each affixes their respective signature to this Agreement knowingly,
voluntarily and without coercion.

               19. ENTIRE AGREEMENT. The Parties hereby acknowledge and agree
that except as provided herein, the Agreement contains the entire agreement
between Pinkus and the Company, and that neither is relying on any
representation or promise that does not appear in this Agreement.

               20. MODIFICATIONS AND WAIVERS. No provision of this Agreement
shall be modified, waived or discharged unless the modification, waiver or
discharge is agreed to in writing and signed by Pinkus and by an authorized
officer of the Company.

               21. GOVERNING LAW. The construction, interpretation and
enforcement of this Agreement shall be governed by the internal laws of the
State of California applicable to contracts made and to be performed wholly
within such state, without regard to the conflict of laws rules of any
jurisdiction.

               22. SEVERABILITY. The Parties hereby agree that if any provision,
or portion thereof, of this Agreement shall for any reason be held to be invalid
or unenforceable or to be contrary to public policy or any law, then the
remainder of the Agreement shall not be affected thereby.

               23. ARBITRATION. Each Party agrees that any and all disputes
which arise out of or relate to this Agreement or any of the subjects hereof
shall be resolved through final and binding arbitration. Such arbitration shall
be in lieu of any trial before a judge and/or jury, and the Parties expressly
waive all rights to have such disputes resolved via trial before a judge and/or
jury. Such

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disputes shall include, without limitation, claims for breach of contract or of
the covenant of good faith and fair dealing, claims of discrimination, claims
under any federal, state or local law or regulation now in existence or
hereinafter enacted and as amended from time to time concerning in any way the
subject of Pinkus's employment with the Company or its termination. The only
claims not covered by this Agreement to arbitrate disputes are: (i) claims for
benefits under the unemployment insurance benefits; (ii) claims for workers'
compensation benefits under any of the Company's workers' compensation insurance
policy or fund; (iii) claims the Company may have against Pinkus for fraud,
misappropriation of the Company's property or assets; willful misconduct in
connection with a communication to any government agency or entity; any breach
by Pinkus of her fiduciary duties, or a breach of the Confidentiality of
Information and Inventions Agreement. With respect to such disputes, they shall
not be subject to arbitration; rather, they will be resolved pursuant to
applicable law.

               Binding arbitration will be conducted in Emeryville, CA in
accordance with California Code of Civil Procedure section 1282, et seq., and
the rules and regulations of the American Arbitration Association then in effect
for resolution of commercial disputes. Each of the Parties will bear its or his
own respective attorneys' fees, although the arbitrator may award the prevailing
party his/its reasonable attorneys' fees and costs of arbitration except that
such fees and costs may not be recovered by the Company that result from the
Company's defense against any claim by Pinkus challenging the waiver, release
and discharge of rights under the Age Discrimination in Employment Act.

               24. ATTORNEYS FEES AND EXPENSES. If an action is brought by
either Party for breach of any provision of this Agreement, the non-breaching
Party shall be entitled to recover all reasonable attorneys' fees and costs in
defending or bringing such an action.

                  [Remainder of page left blank intentionally]

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               25. COUNTERPARTS. This Agreement may be signed in counterpart
originals with the same force and effect as though a single original were
executed.

Date: August 28, 2003                       /s/ Claudio Pinkus
                                            ------------------------------------
                                            Claudio Pinkus

                                            Ask Jeeves, Inc.:

Date: August 28, 2003                       By:   /s/ Brett Robertson
                                                 -------------------------------
                                                 Name:  Brett Robertson
                                                        ------------------------
                                                 Title: General Counsel
                                                        ------------------------

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                                    EXHIBIT A

           CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENT
<PAGE>
                                    EXHIBIT B

                              COMPETITIVE COMPANIES

1) Google
2) Overture
3) AOL
4) Yahoo
5) MSN
6) Looksmart
<PAGE>
                                    EXHIBIT C

               I, Claudio Pinkus, hereby acknowledge that I was given 21 days to
consider the foregoing Agreement and voluntarily chose to sign the Agreement
prior to the expiration of the 21-day period.

               I declare under penalty of perjury under the laws of the State of
California that the foregoing is true and correct.

               EXECUTED this 28th day of August, at Los Angeles County,
California.

                                                   /s/ Claudio Pinkus
                                                   -----------------------------
                                                       Claudio Pinkus<PAGE>

                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT (the "Agreement") is dated as of August 26,
2003 and is entered into by and between ALLEGHENY TECHNOLOGIES INCORPORATED, a
Delaware corporation (the "Company"), and L. PATRICK HASSEY (the "Employee").

         WHEREAS, the Company offered and the Employee accepted the position as
President and Chief Executive Officer of the Company ("CEO") and a member of the
Board of Directors of the Company ("Director"), such employment and positions to
begin on October 1, 2003 (the "Effective Date");

         WHEREAS, the Company made a number of commitments and representations
to the Employee in order to recruit him as CEO and a Director; and

         WHEREAS, acknowledging that the Employee has certain confidentiality
and non-solicitation obligations to a prior employer, the Company and the
Employee intend to document the terms and conditions of the Employee's
employment in this Agreement.

         NOW, THEREFORE, the parties hereby agree as follows:

         1.       Employment. On the Effective Date, the Company will begin
employing the Employee and Employee hereby accepts employment from Company
beginning on the Effective Date upon the terms and conditions hereinafter set
forth.

         2.       Term. This Agreement and the employment of the Employee
hereunder shall commence on the Effective Date, and, except as this Agreement
and the Employee's employment hereunder are earlier terminated as provided in
Section 9, shall continue until the third anniversary of the Effective Date. The
Term shall automatically be extended for one additional month commencing on the
last business day of the first month of the Term and, if

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initially extended, on the last business day of each succeeding month (each, an
"Extension Date") so that at any given time the Term shall be no less than 35
nor more than 36 months, unless one party gives written notice to the other on
or before an Extension Date of its intention not to extend the Term. If one
party gives written notice to the other of its intention not to extend the Term,
the Term shall end on the last day of the month that is thirty five months after
the month in which such notice not to extend is received. The date upon which
the Term hereof, as extended from time to time, shall expire is hereinafter
referred to as the "Expiration Date".

         3.       Duties. During the Term hereof, the Employee shall serve as
President and Chief Executive Officer of the Company and shall serve as a member
of the Board of Directors of the Company (the "Board"). The Employee shall
report to the Board, shall be primarily responsible for the executive management
of the Company and shall perform such duties as are consistent with the role of
the President and Chief Executive Officer of the Company and such other duties,
not inconsistent therewith, as may be reasonably assigned by the Board. Subject
to vacation and approved absences from his duties, the Employee shall devote his
full business time and attention to the performance of his duties hereunder,
provided, with the consent of the Board, the Employee may (i) devote a
reasonable amount of time and effort to charitable, industry and community
groups and (ii) serve as a director of other companies which do not compete with
the Company. For purposes of this Agreement, no approval of the Board shall be
required for investments by the Employee in his personal portfolio except for
the acquisition or holding of 3% or more of the capital stock or partnership
interests of an entity that competes with the Company.

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4.       Compensation.

         (a)      Base Salary. The Company shall pay Employee a base salary of
$850,000 per year or such greater amount as may from time to time be authorized
by the Board or any authorized committee thereof. The amount in effect under
this subsection 4(a) at a relevant time is hereinafter referred to as "Base
Salary". The Base Salary shall be payable in such installments and at such times
as conform to the general payroll practices of the Company.

         (b)      Annual Incentive Plan. Beginning January 1, 2004 and each
January 1st during the Term, Employee shall be eligible to participate in and
shall be granted an opportunity to earn incentive compensation under the
Company's Annual Incentive Plan or any other annual incentive plan as shall be
in effect for executive level salaried employees of the Company from time to
time during the Term (each, a "Bonus Plan") at a level commensurate with his
position as President and Chief Executive Officer of Company. As of the
Effective Date, the opportunity for the CEO to earn incentive compensation under
the Bonus Plan is 80% of Base Salary at the level of performance designated
"Target" by the Company. The Employee shall have input into the process by which
the Company establishes its business objective for each year during the Term and
the performance measures under the AIP. For the period from the Effective Date
to December 31, 2003, the Company shall pay the Employee a bonus in an amount
equal to $170,000 (that is, $850,000 x 80% x 0.25) in a single lump sum when AIP
payments are ordinarily paid to AIP participants.

         (c)      Sign On and Retention Bonuses. On the Effective Date, the
Company shall pay the Employee a Sign On Bonus in an amount that, when added to
all other

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applicable employee compensation within the meaning of Section 162(m) of the
Internal Revenue Code of 1986, as amended (the "Code") paid or to be paid
hereunder during 2003, causes the sum of all applicable employee compensation to
be equal to $1,000,000. On February 16, 2004, the Company shall pay the Employee
a Retention Bonus in an amount equal to the difference between $500,000 and the
amount of the Sign On Bonus paid in 2003 under the previous sentence, provided,
however, if, in the reasonable judgment of the Company, the sum of all
applicable compensation paid or to be paid to the Employee in 2004 would exceed
$1,000,000, the Company shall defer payment of such Retention Bonus until the
next succeeding year in which the sum of all applicable employee compensation
will not exceed $1,000,000.

         (d)      Grant of Options. On the Effective Date, the Company shall
grant to the Employee the right to purchase up to 120,000 shares of the common
stock of the Company at a price equal to the average of the high and low trading
prices on the trading day prior to the Effective Date. Such grant shall be
evidenced by a written agreement prepared by the Company that shall comply with
applicable law. In addition, the Employee shall be eligible to receive grants of
stock options from time to time as determined appropriate by the Company's Stock
Incentive Award Subcommittee.

         (e)      Total Shareholder Return Plan. Beginning on the Effective
Date, the Employee shall participate in and be granted an opportunity to earn
incentive compensation, paid in the form of shares of common stock of the
Company, under the Company's Total Shareholder Return Plan (the "TSRP") in
accordance with the Company's policies and the determination of the Stock
Incentive Award Subcommittee. As of the Effective Date, the target award for the
CEO under the TSRP is a number of

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shares, determined with reference to the average of the high and low trading
prices on the trading day prior to the date of grant, with a value equal to 60%
of the CEO's Base Salary.

         (f)      Other Equity-Based Plan. The Employee shall participate in and
be granted the opportunity to earn incentive compensation, payable in the form
of equity-based awards, under a to-be-designed and implemented equity based
compensation plan intended to provide compensation opportunities equivalent to
the compensation opportunities provided under the discontinued Stock Acquisition
and Retention Plan of the Company. The Employee shall have input into the design
of such plan but final decisions on the design of such plan shall be made by the
Personnel and Compensation Committee.

         (g)      Other Benefit Programs. Company shall provide, during the Term
hereof, coverage for Employee under any plan qualified within the meaning of
Section 401(a) of the Code, including the Allegheny Technologies Incorporated
Retirement Security Plan (the "Retirement Plan"), and each and all welfare
plans, as defined in Section 3(1) of the Employee Retirement Income Security Act
("ERISA"), and each other or successor benefit programs whether or not so
qualified or covered by ERISA, as applicable from time to time to its executive
level salaried employees

         (h)      Supplemental Employee Retirement Plan. Employee shall be
entitled to participate in the Company's Supplemental Pension Plan or any
successor plan thereto (the "SPP") as the application of the SPP to the Employee
is varied by this subsection (g). Notwithstanding any provision of the SPP, as
of the Effective Date, the Employee shall accrue one year of payments under the
SPP for each year the Employee serves as CEO up

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to a maximum of ten such years of payments, the maximum permitted under the
SPP. The Employee shall be fully vested in his SPP benefit to the extent accrued
as of any time on and after the first anniversary of the Effective Date.

         (i)      Time Away from the Headquarters Office. The Employee shall be
entitled to schedule time away from the Pittsburgh Headquarters Office (in
addition to time devoted to business travel) equal to two weeks per each
calendar quarter and the period from Christmas Eve Day to the first business day
of the subsequent year. For such scheduled time that exceeds the normal vacation
periods due to the Employee under the applicable Company policies, the Employee
shall be provided and shall make use of a lap-top computer and cell phone at the
cost and expense of the Company.

         (j)      Special Travel Arrangements. The Company shall permit, arrange
for and bear the cost and expense of the judicious and reasonable use by the
Employee of an airplane for business, personal and family travel, including as
an element of such cost and expense the federal, state and local income tax
consequences to the Employee of the use of such airplane for non-business
purposes.

         (k)      Perquisites. Employee shall be eligible for, and shall
participate in, such perquisites as are generally available to executive level
salaried employees of the Company from time to time.

         (l)      Indemnification. The Employee shall be entitled to be
indemnified, and the Company hereby does indemnify the Employee, for all
liability, damages, costs, fees and expenses from all causes of actions (whether
criminal, civil, administrative or otherwise) that arise or are alleged to arise
during the course of his employment with the Company or service on the Board to
the fullest extent permitted under the laws of the

                                       6
<PAGE>

         State of Delaware and the Company's charter. Employee shall not be
         required to advance such damages, costs, fees and expenses (including
         the costs and expenses of defense) but such expenses shall be paid
         directly by the Company as incurred. Employer also agrees to keep
         suitable Directors' and Officers' liability insurance in force
         throughout the term of this Agreement sufficient to cover the
         activities of Employee.

         5.       Confidentiality. Except (i) as directed by the Board or (ii)
as may be required, in the reasonable judgment of the Company, by legal process
or for SEC disclosure or similar requirement or (iii) in the ordinary course of
furthering the interests of the Company, the Employee will not, during or after
the Term or at any time thereafter, divulge, furnish, disclose or make
accessible to anyone for use in any way confidential or secret knowledge or
information of the Company which the Employee has acquired or became acquainted
with during or prior to the Term. The foregoing shall not apply to such secrets
and processes that are then in the public domain (provided that he was not
responsible, directly or indirectly, for such secrets or processes entering the
public domain without Company's consent).

         6.       Non-Competition; Non-Interference. During the Term and for one
year thereafter, Employee shall not:

                  (a)      to the detriment of he Company, (i) interfere with
         any of the Company's relationships with, or endeavor to employ or
         entice away from the Company, any person who at any time on or after
         the Effective Date is, was or becomes an employee of the Company or
         interfere with or (ii) seek to alter the Company's relationship with,
         solicit, or divert any supplier, licensee or distributor of the
         Company;

                  (b)      directly or indirectly, as an owner, partner,
         venturer, employee, agent, servant or contractor, engage in or
         facilitate or support others to engage in the production,

                                       7
<PAGE>

         sale or distribution of any products or services relating to any
         business in which the Company or any of its subsidiaries is engaged at
         the Date of Termination anywhere in the world or solicit or attempt to
         solicit, directly or indirectly, business in competition with the
         Company or any of its subsidiaries, any suppliers, clients or customers
         with whom the Company or any of its subsidies have done or then propose
         to do business; or

                  (c)      seek or obtain employment with or provide services to
         any customer or client of the Company with whom Employee interacted
         during the Term.

         For purposes of Sections 5, 6 or 7 hereof unless the context otherwise
         requires, the term "Company" shall include divisions, subsidiaries and
         controlled affiliated entities of the Company, and "businesses" of
         Company shall include businesses of any of such entities.

         7.       Nondisparagement. For the period commencing on the Effective
Date and continuing for 24 months following the Date of Termination, Employee
will not, in any form, disparage Company, its officers or directors or otherwise
make comment adverse to Company concerning any aspect of the business or
practices, past or present, of Company.

         8.       Injunctive Relief. If there is a breach or threatened breach
by Employee of any of the provisions of Sections 5, 6 or 7 of this Agreement,
Employee acknowledges and agrees that the Company will have no adequate remedy
at law and monetary damages will be insufficient compensation and the Company
shall be entitled to request an injunction from a court of competent
jurisdiction restraining Employee from such breach or to provide such other
equitable remedy as the Company may request and such court may provide. Nothing
herein shall be construed as prohibiting Company from pursuing any other
remedies against Employee for such breach or threatened breach.

                                       8
<PAGE>

         9.       Termination. Unless earlier terminated in accordance with the
following provisions of this Paragraph 9, the Company shall continue to employ
the Employee and the Employee shall remain employed by the Company during the
entire Term (as extended from time to time) as set forth in Paragraph 1.
Paragraph 10 hereof sets forth certain obligations of the Company in the event
that the Employee's employment hereunder is terminated. Certain capitalized
terms used in this Paragraph 9 and Paragraph 10 hereof are defined in Paragraph
9(c) below.

                  (a)      Death or Disability. Except to the extent otherwise
         expressly stated herein, including without limitation, as provided in
         Paragraph 10(a) with respect to certain post-Date of Termination
         payment obligations of the Company, this Agreement shall terminate
         immediately as of the Date of Termination in the event of the
         Employee's death or in the event that the Employee becomes Disabled.

                  (b)      Notification of Discharge for Cause or Resignation.
         In accordance with the procedures hereinafter set forth, the Company
         may discharge the Employee from his employment hereunder for Cause and
         the Employee may resign from his employment hereunder for Good Reason
         or otherwise. Any discharge of the Employee by the Company for Cause or
         resignation by the Employee for Good Reason shall be communicated by a
         Notice of Termination to the Employee (in the case of discharge) or the
         Company (in the case of resignation) given in accordance with Paragraph
         11 of this Agreement. The Employee may resign without Good Reason by
         delivering a Notice of Termination. For purposes of a voluntary
         resignation without Good Reason, the Notice of Termination may take the
         form of a One Year Notice. For purposes of this Agreement, a "Notice of
         Termination" means a written notice which (i) indicates the

                                       9
<PAGE>

         specific termination provision in this Agreement relied upon, (ii) sets
         forth in reasonable detail the facts and circumstances claimed to
         provide a basis for termination of the Employee's employment under the
         provision so indicated and (iii) if the Date of Termination is to be
         other than the date of receipt of such notice, specifies the Date of
         Termination (which date shall in all events be within fifteen (15) days
         after the giving of such notice). No purported termination of the
         Employee's employment for Cause shall be effective without a Notice of
         Termination. The failure by the Employee to set forth in the Notice of
         Termination any fact or circumstance which contributes to a showing of
         Good Reason shall not waive any right of the Employee hereunder or
         preclude the Employee from asserting such fact or circumstances in
         enforcing the Employee's rights hereunder.

                  (c)      Definitions. For purposes of this Paragraph 9 and of
         Paragraph 10 hereof, the following capitalized terms shall have the
         meanings set forth below:

                           (i)      "Accrued Obligations" shall mean, as of the
                  Date of Termination, the sum of (A) the Employee's base salary
                  under Section 4(a) through the Date of Termination to the
                  extent not theretofore paid, (B) the amount of any bonus then
                  due under Section 4(b), and any incentive compensation,
                  deferred compensation and other cash compensation accrued by
                  or on behalf of the Employee as of the Date of Termination to
                  the extent not theretofore paid, (C) any vacation pay, expense
                  reimbursements and other cash entitlements accrued by the
                  Employee as of the Date of Termination to the extent not
                  theretofore paid and (D) any accrued benefits or rights
                  required by law under any plan, program or arrangement in
                  which the Employee participated at the Date of Termination.

                                       10
<PAGE>

                           (ii)     "Cause" shall mean (A) the willful and
                  continued failure of the Employee to perform substantially his
                  duties with the Company or one of its affiliates (other than
                  any such failure resulting from incapacity due to physical or
                  mental illness), after a written demand for substantial
                  performance is delivered to the Employee by the Board which
                  demand specifically identifies the manner in which the Board
                  believes that the Employee has not substantially performed his
                  duties, or (B) the willful engaging by the Employee in illegal
                  conduct or gross misconduct which is materially and
                  demonstrably injurious to the Company; or (C) breach of a
                  fiduciary duty involving personal profit to the Employee.

For purposes of this provision, no act or failure to act on the part of the
Employee shall be considered "willful" unless it is done, or omitted to be done,
by the Employee in bad faith or without reasonable belief that the Employee's
action or omission was in the best interests of the Company. Any act, or failure
to act, based upon authority given pursuant to a resolution duly adopted by the
Board or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Employee in good faith and in
the best interests of the Company. The cessation of employment of the Employee
shall not be deemed to be for Cause unless and until there shall have been
delivered to the Employee a copy of a resolution duly adopted by the affirmative
vote of not less than three-quarters of the entire membership of the Board at a
meeting of the Board called and held for such purpose, after reasonable notice
is provided to the Employee and the Employee is given an opportunity, together
with counsel, to be heard before the Board, finding that, in the good faith
opinion of the Board, the Employee is guilty of the conduct described in
subparagraph (A) or (B) above, and specifying the particulars thereof in detail.

                                       11
<PAGE>

                           (iii)    A "Change in Control" shall mean, and shall
                  be deemed to have occurred upon the occurrence of, any one of
                  the following events:

                                    (A)      The acquisition in one or more
                           transactions, other than from the Company, by any
                           individual, entity or group (within the meaning of
                           Section 13(d)(3) or 14(d)(2) of the Securities
                           Exchange Act of 1934, as amended (the "Exchange
                           Act")) of beneficial ownership (within the meaning of
                           Rule 13d-3 promulgated under the Exchange Act) of
                           shares of Company stock which, when aggregated with
                           any other shares of Company stock owned by such
                           individual, entity or group, represents 20% or more
                           of the voting power of all shares of Company stock
                           then outstanding; provided, that the following shall
                           not constitute a Change in Control: any acquisition
                           by (1) the Company or any of its subsidiaries, any
                           employee benefit plan (or related trust) sponsored or
                           maintained by the Company or any of its subsidiaries,
                           or (2) any corporation with respect to which,
                           following such acquisition, more than 20% of,
                           respectively, the then outstanding shares of common
                           stock of such corporation and the combined voting
                           power of the then outstanding voting securities of
                           such corporation entitled to vote generally in the
                           election of directors is then beneficially owned,
                           directly or indirectly, by all or substantially all
                           of the individuals and entities who were the
                           beneficial owners, respectively, of the outstanding
                           Company stock immediately prior to such acquisition
                           in substantially the same proportion as their
                           ownership, immediately prior to

                                       12
<PAGE>

                           such acquisition, of the outstanding common stock and
                           company voting securities, as the case may be; or

                                    (B)      Individuals who constitute the
                           Board as of the date of this Agreement (the
                           "Incumbent Board") cease for any reason to constitute
                           at least a majority of the Board; provided, however,
                           that any individual becoming a director subsequent to
                           the date of this Agreement whose election or
                           nomination for election by the Company was approved
                           by a vote of at least a majority of the directors
                           then comprising the Incumbent Board or was approved
                           by a stockholder beneficially owning in excess of 51%
                           of the outstanding common stock at the date hereof
                           and at the date of such nomination or election
                           (unless such nomination or election (1) was at the
                           request of an unrelated third party who has taken
                           steps reasonably calculated to effect a Change in
                           Control, or (2) otherwise arose in connection with or
                           in anticipation of the Change in Control) shall be
                           considered as though such individual were a member of
                           the Incumbent Board; or

                                    (C)      Approval by the shareholders of the
                           Company of a reorganization, merger or consolidation,
                           unless, following such reorganization, merger or
                           consolidation, all or substantially all of the
                           individuals and entities who were the respective
                           beneficial owners of the outstanding common stock and
                           company voting securities immediately prior to such
                           reorganization, merger or consolidation, following
                           such reorganization, merger or consolidation
                           beneficially own, directly or

                                       13
<PAGE>

                           indirectly, more than 20% of, respectively, the then
                           outstanding shares of common stock and the combined
                           voting power of the then outstanding voting
                           securities entitled to vote generally in the election
                           of directors, as the case may be, of the corporation
                           resulting from such reorganization, merger or
                           consolidation in substantially the same proportion as
                           their ownership of the outstanding common stock and
                           company voting securities immediately prior to such
                           reorganization, merger or consolidation, as the case
                           may be; or

                                    (D)      Approval by the shareholders of the
                           Company of (1) a complete liquidation or dissolution
                           of the Company or (2) a sale or other disposition of
                           60% or more by value of the assets of the Company
                           other than to a corporation with respect to which,
                           following such sale or disposition, more than 70% of,
                           respectively, the then outstanding shares of common
                           stock and the combined voting power of the then
                           outstanding voting securities entitled to vote
                           generally in the election of directors is then owned
                           beneficially, directly or indirectly, by all or
                           substantially all of the individuals and entities who
                           were the beneficial owners, respectively, of the
                           outstanding common stock and company voting
                           securities immediately prior to such sale or
                           disposition in substantially the same proportion as
                           their ownership of the outstanding common stock and
                           company voting securities, as the case may be,
                           immediately prior to such sale or disposition; or

                                       14
<PAGE>

                                    (E)      the happening of any of the
                           foregoing within ninety (90) days prior to the Date
                           of Termination shall be conclusively presumed to be a
                           Change in Control affecting the Employee.

                           (iv)     "Date of Termination" shall mean (A) in the
                  event of a discharge of the Employee by the Company for Cause
                  or a resignation by the Employee for Good Reason or a One Year
                  Notice as defined in Section 9(c)(vii), the date the Employee
                  (in the case of discharge) or the Company (in the case of
                  resignation) receives a Notice of Termination, or any later
                  date specified in such Notice of Termination or the One Year
                  Notice, as the case may be, (B) in the event of a discharge of
                  the Employee without Cause or a resignation by the Employee
                  without Good Reason, the date the Employee (in the case of
                  discharge) or the Company (in the case of resignation)
                  receives notice of such termination of employment, (C) in the
                  event of the Employee's death, the date of the Employee's
                  death, and (D) in the event of termination of the Employee's
                  employment by reason of disability pursuant to Subsection
                  9(c)(vi), the date the Employee receives written notice of
                  such termination.

                           (v)      "Disability" shall mean upon 30 days prior
                  notice in writing in the event Employee has been so
                  incapacitated that he has been unable to perform the services
                  required of him hereunder for a period of at least 150 of 180
                  consecutive calendar days and such inability is continuing at
                  the time of the giving of such notice. Company, at its sole
                  cost and expense, shall continue to provide and keep in force
                  during the period of incapacity which remains after the Date
                  of Termination, but not after Employee attains age 65, income
                  replacement, sickness

                                       15
<PAGE>

                  and accident and health insurance coverages for Employee and
                  his dependents of the types provided by the group benefit
                  plans of Company for executive level employees of the Company
                  the in effect.

                           (vi)     "Good Reason" shall mean any of the
                  following: (A) the assignment to the Employee of any duties
                  inconsistent in any respect with the Employee's position
                  (including status, offices, titles and reporting
                  requirements), authority, duties or responsibilities as
                  contemplated by Section 3 of this Agreement, or any other
                  action by the Company which results in a diminution in such
                  position, authority, duties or responsibilities or which
                  renders such position to be of less dignity, responsibility or
                  scope, excluding for this purpose an isolated, insubstantial
                  and inadvertent action not taken in bad faith and which is
                  remedied by the Company promptly after receipt of notice
                  thereof given by the Employee; (B) any failure by the Company
                  to pay when due or otherwise comply with any of the provisions
                  of Section 4 of this Agreement, other than an isolated,
                  insubstantial and inadvertent failure not occurring in bad
                  faith and which is remedied by the Company promptly after
                  receipt of notice thereof given by the Employee; (C) the
                  Company's requiring the Employee to be based at any office or
                  location other than the Company's headquarters in Pittsburgh,
                  Pennsylvania or the Company's requiring the Employee to travel
                  on Company business to a substantially greater extent than
                  required immediately prior to the Effective Date; (D) any
                  purported termination by the Company of the Employee's
                  employment otherwise than as expressly permitted by this
                  Agreement; or (E) any failure by the

                                       16
<PAGE>

                  Company to cause a successor corporation to adopt this
                  Agreement and agree to perform the duties and obligations of
                  the Company hereunder.

                           (vii)    "One Year Notice" shall mean a written
                  notice from the Employee to the Company indicating his
                  voluntary resignation and setting a Date of Termination twelve
                  months after the giving of such One Year Notice. If the
                  Employee gives a One Year Notice, his employment hereunder
                  shall continue until the Date of Termination set forth in the
                  One Year Notice.

         10.      Obligations of the Company Upon Termination.

                  (a)      Discharge for Cause, Resignation without Good Reason,
         Death or Disability. In the event of a discharge of the Employee for
         Cause or resignation by the Employee without Good Reason or in the
         event Employee gives a One Year Notice as defined in Section 9(c)(vii),
         or in the event this Agreement terminates by reason of the death or
         Disability of the Employee:

                           (i)      the Company shall pay all Accrued
                  Obligations to the Employee, or to his heirs or estate in the
                  event of the Employee's death, in a lump sum in cash within
                  thirty (30) days after the Date of Termination; and

                           (ii)     the Employee, or his beneficiary, heirs or
                  estate in the event of the Employee's death, shall be entitled
                  to receive all benefits accrued by him as of the Date of
                  Termination under the plans programs and arrangements
                  sponsored by the Company, whether or not qualified within the
                  meaning of the Code, in such manner and at such time as are
                  provided under the terms of such plans and arrangements; and

                                       17
<PAGE>

                           (iii)    all other obligations of the Company
                  hereunder shall cease forthwith (or upon the expiration of the
                  one year term in the event of a One Year Notice), except as
                  specifically set forth in this Agreement.

                  (b)      Discharge without Cause or Resignation for Good
         Reason Prior to a Change in Control. If the Employee is discharged
         other than for Cause or disability or the Employee resigns with Good
         Reason within two years of the happening of an event of Good Reason and
         such discharge or resignation occurs prior to a Change in Control:

                           (i)      the Company shall pay to the Employee in a
                  lump sum in cash within thirty (30) days after the Date of
                  Termination the aggregate of the following amounts:

                                    (A)      all Accrued Obligations; and

                                    (B)      Within thirty (30) days of the Date
                  of Termination, an amount, in a single cash payment, equal to
                  three times the sum of (i) the Employee's annual Base Salary
                  at the rate then in effect and (ii) the amount of AIP payable
                  for the year in which the Date of Termination occurs
                  determined as if the Company's performance for the year in
                  which the Date of Termination occurs is equal to the greater
                  of (x) actual to-date performance of the Company for the year
                  in which the Date of Termination occurs or (y) Target level
                  performance for the year in which the Date of Termination
                  occurs.

                           (ii)     the Employee shall be entitled to receive
                  all benefits accrued by him as of the Date of Termination
                  under all qualified and nonqualified retirement, pension,
                  profit sharing and similar plans of the Company in such manner
                  and at such time as are provided under the terms of such
                  plans; and

                                       18
<PAGE>

                           (iii)    all stock options and other stock interests
                  or stock-based rights awarded to the Employee by the Company
                  on or before the Date of Termination shall become fully vested
                  and nonforfeitable as of the Date of Termination and shall
                  remain exercisable until the earlier of (i) the expiration
                  date of such option, stock interest or stock-based rights as
                  set forth at the time of grant, or (ii) the third anniversary
                  of the Date of Termination;

                           (iv)     with respect to the TSRP and any
                  equity-based awards, the Company shall deliver to the Employee
                  any earned but not yet paid awards (in cash or shares as
                  denominated in the respective awards), within thirty (30) days
                  of the Date of Termination;

                           (v)      the Company shall provide or arrange to
         provide the Employee and his dependents with all health and life
         insurance benefits at the respective levels in effect on the Date of
         Termination for a period of thirty-six (36) months at a monthly cost to
         the Employee no greater than the smallest monthly cost charged to any
         salaried employee of the Company;

                           (vi)     except as otherwise provided above or in
                  Paragraph 17 hereof, all other obligations of the Company
                  hereunder shall cease forthwith.

                  (c)      Discharge Without Cause or Resignation for Good
         Reason After a Change in Control. If the Employee is discharged other
         than for Cause or disability or the Employee resigns for Good Reason,
         within one year of the happening of Good Reason and such discharge or
         resignation occurs within one year after a Change in Control:

                                       19
<PAGE>

                           (i)      the Company shall pay to the Employee in a
                  lump sum in cash within thirty (30) days after the Date of
                  Termination the aggregate of the following amounts:

                                    (A)      all Accrued Obligations; and

                                    (B)      Within thirty (30) days of the Date
                           of Termination, an amount, in a single cash payment,
                           equal to three times the sum of (i) the Employee's
                           annual Base Salary at the rate then in effect and
                           (ii) the amount of AIP payable for the year in which
                           the Date of Termination occurs determined as if the
                           Company's performance for the year in which the Date
                           of Termination occurs is equal to the greater of (x)
                           actual to-date performance of the Company for the
                           year in which the Date of termination occurs or (y)
                           target level performance for the year in which the
                           Date of Termination occurs;

                           (ii)     the Employee shall be entitled to receive
                  all benefits accrued by him as of the Date of Termination
                  under all qualified and nonqualified retirement, pension,
                  profit sharing and similar plans of the Company in such manner
                  and at such time as are provided under the terms of such
                  plans; and

                           (iii)    all stock options and other stock interests
                  or stock-based rights awarded to the Employee by the Company
                  on or before the Date of Termination shall become fully vested
                  and nonforfeitable as of the Date of Termination and shall
                  remain exercisable for at least three years following the Date
                  of Termination;

                                       20
<PAGE>

                           (iv)     with respect to the TSRP, within thirty (30)
                  days of the Date of Termination, the Company shall deliver to
                  the Employee any shares earned but not delivered under the
                  TSRP for a completed award period and, for uncompleted award
                  periods, the Company shall deliver a number of shares equal to
                  the number that would be paid under the TSRP if such
                  uncompleted periods were then completed and based on the
                  Company's actual to-date performance as measured by the TSRP
                  for the uncompleted award period;

                           (v)      with respect to any other equity-based
                  awards, within thirty (30) days of the Date of Termination,
                  such shares or other awards shall be deemed vested and
                  performance achieved at target level and the Company shall
                  deliver such shares or the value of such awards, as provided
                  under the plan, to the Employee;

                           (vi)     the Company shall provide or arrange to
                  provide the Employee and his dependants with all health and
                  life insurance benefits at the level in effect on the Date of
                  Termination for a period of thirty-six (36) months from the
                  Date of Termination at a monthly cost to the Employee equal to
                  the smallest cost charged to any salaried employee;

                           (vii)    in the event the Employee is assessed an
                  excise tax under Section 4999 of the Code, promptly upon
                  notice of such assessment the Company shall either (i) pay the
                  Employee an amount equal to the sum of (x) the excise tax
                  assessed and (y) an amount necessary to pay all federal, state
                  and local income taxes on thee receipt of such payment with
                  respect to the excise tax and with respect to he amount
                  contemplated by this clause (y) or (ii) contest such

                                       21
<PAGE>

                  assessment, provided, however, to the extent the Company's
                  contest of the assessment is unsuccessful, the Company shall
                  pay the Employee the amount described in (i) (as adjusted in
                  connection with the contest) plus all costs, penalties and
                  interest incurred by the Employee in connection with the
                  contest of the assessment of excise tax; and

                           (viii)   except as otherwise provided above or in
                  Paragraph 17 hereof, all other obligations of the Company
                  hereunder shall cease forthwith.

                  (d)      Payment Obligations Absolute. The Company's
         obligation to make the payments and the arrangements provided for
         herein shall be absolute and unconditional, and shall not be affected
         by any circumstances, including, without limitation, any offset,
         counterclaim, recoupment, defense, or other right which the Company may
         have against the Employee or any other party. Each and every payment
         made hereunder by the Company shall be final, and the Company shall not
         seek to recover all or any part of such payment from the Employee or
         from whomsoever may be entitled thereto, for any reasons whatsoever.

                  (e)      Contractual Rights to Benefits. This Agreement
         establishes and vests in the Employee a contractual right to the
         benefits to which he is entitled hereunder. The Employee shall not be
         obligated to seek other employment in mitigation of the amounts payable
         or arrangements made under any provision of this Agreement, and the
         obtaining of any such other employment shall in no event effect any
         reduction of the Company's obligations to make the payments and
         arrangements required to be made under this Agreement.

                                       22
<PAGE>

         11.      Notices. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if delivered by hand or mailed within the continental United States
by first class certified mail, return receipt requested, postage prepaid,
addressed as follows:

                  (a)      to the Board or the Company, to:

                           Allegheny Technologies Incorporated
                           10th Floor
                           Six PPG Place
                           Pittsburgh, PA 15222

                           Attention: Jon D. Walton, Senior Vice-President,
                           Chief Legal and Administrative Officer

                  (b)      to the Employee, to:
                           L. Patrick Hassey
                           c/o Allegheny Technologies Incorporated
                           1000 Six PPG Place
                           Pittsburgh, PA  152222

         Addresses may be changed by written notice sent to the other party at
the last recorded address of that party.

         12.      Waiver of Breach. A waiver by Company or Employee of a breach
of any provision of this Agreement by the other party shall be in writing and
shall not operate or be construed as a waiver of any subsequent breach by the
other party.

         13.      Dispute Resolution. Any disputes arising under this Agreement
shall be resolved by discussions between the parties and, failing such
resolution, by resort to a court of competent jurisdiction with venue in
Allegheny County, Pennsylvania.

         14.      Legal Fees and Expenses. Company shall promptly reimburse
Employee for the reasonable legal fees and expenses incurred by Employee in
connection with enforcing any right of Employee pursuant to and afforded by this
Agreement; provided, however, that Company

                                       23
<PAGE>

only will reimburse Employee for such legal fees and expenses if, in connection
with enforcing any right of Employee pursuant to and afforded by this Agreement,
either (i) a judgment has been rendered in favor of the Employee by a duly
authorized court of law; or (ii) Company and Employee have entered into a
settlement agreement providing for the payment to Employee of any or all amounts
due hereunder.

         15.      Entire Agreement; Governing Law. This Agreement contains the
entire agreement of the parties, superseding any prior agreement or arrangement
between the parties concerning the employment of Employee by Company, whether
written or oral, and any such agreements are null and void except that any prior
stock option agreements between the Company and the Employee shall continue to
be obligations of Company and Employee. This Agreement may be changed only by a
writing signed by the party against whom enforcement is sought. This Agreement
shall be governed by the laws of the Commonwealth of Pennsylvania, without
regard to its principles of conflicts of laws.

         16.      Severability. If any provision of this Agreement or the
application thereof to any circumstance shall to any extent be held invalid or
unenforceable, the remainder of this Agreement shall not be affected thereby and
shall be valid and enforceable to the fullest extent permitted by law, but only
if and to the extent such enforcement would not materially and adversely
frustrate the parties' essential objectives as expressed herein.

         17.      Survival of Obligations. Except as otherwise specifically set
forth in this Agreement or as otherwise prohibited by law, all rights and
obligations of Employee, except such obligations as are created by Sections 5,
6, 7, 8, 9 and 10 hereof, and all obligations of Company under this Agreement,
shall cease on, and as of, the Date of Termination.

                                       24
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this agreement as of the
day first hereinabove written.

                                   ALLEGHENY TECHNOLOGIES INCORPORATED

ATTEST:                            By /s/ R. P. Bozzone
                                      -----------------------------------------
                                      Title: Chairman of the Board of Directors
/s/ Jon D. Walton
-----------------------------

WITNESS:                           /s/ L. Patrick Hassey
                                   --------------------------------------------
                                           L. Patrick Hassey
/s/ Tracy L. Paxinos
-----------------------------

                                       25

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