Document:

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                                                                   Exhibit 10.23

                             EMPLOYMENT AGREEMENT

     THIS AGREEMENT is entered into effective as of this 1st day of February,
2001 (the "Effective Date"), by and between IMCO Management Partnership L.P., a
Texas limited partnership (the "Company"), IMCO Recycling Inc., a Delaware
corporation ("IMCO") and Richard L. Kerr residing at 7532 Sweetgum Dr., Irving,
Texas (the "Executive").

                                    WITNESS

     WHEREAS, the Company performs management and administrative services for
IMCO Recycling Inc. ("IMCO") and IMCO's subsidiaries and affiliates (hereinafter
IMCO and IMCO's subsidiaries and affiliates are collectively referred to as the
"IMCO Group") pursuant to management services agreements (the "IMCO
Engagement");

     WHEREAS, the Company has employed the Executive to devote his full time,
attention and energies in performing the specific duties assigned to him with
respect to the IMCO Engagement and such other duties as the Company may assign
him to perform;

     WHEREAS, as part of the IMCO Engagement, the Executive has been assigned
the duties and elected to the position of Executive Vice President of IMCO and
President - Specialty Alloys Unit;

     WHEREAS, the Company and IMCO consider an agreement related to the
employment of the Executive to be in the best interests of the Company and vital
to the IMCO Engagement;

     WHEREAS, if the Executive's employment is terminated during the Term of
this Agreement, the Company also desires to retain the Executive's services in
an advisory and consulting capacity and to prevent any other business
competitive with IMCO, the IMCO Group or the Company from securing his services
and utilizing his experience, background and expertise during the post
employment period the Executive's services are retained;

     WHEREAS, the Executive considers an agreement related to his employment
with the Company and the IMCO Engagement including the period during which his
post employment services are retained by the Company to be in his best
interests; and

     WHEREAS, the Company, IMCO and Executive desire that the Executive's
employment with the Company and his service as an executive officer of IMCO be
in accordance with the provisions contained in this Agreement.

     NOW, THEREFORE, in consideration of the premises and the respective
covenants and agreements set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged and
confessed, the Company, IMCO and Executive agree as follows:
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                                   ARTICLE I
                                  EMPLOYMENT

     1.1  Statement of Employment.  Commencing on the Effective Date hereof, the
          -----------------------
Company and Executive agree that Executive's employment by the Company and the
performance of his duties and obligations as an executive officer of IMCO is
governed by and subject to the agreements, representations, terms, warranties,
covenants, conditions and other provisions contained herein.

     1.2  Term.  Subject to the provisions of Articles V and IX below, this
          ----
Agreement shall commence on the Effective Date, and, shall continue for a two
year period until February 1, 2003, and thereafter, the term will be
automatically extended for successive periods of one year, unless prior to the
end of the original two-year period (or, if applicable, any successive one-year
period) the Company gives the Executive at least ninety (90) days prior written
notice that the Company has decided not to extend this Agreement's term.
However, if there is a Change in Control (as defined in Section 5.1(f)), an
additional two (2) year period will be automatically added to the end of the
term during which the Change in Control occurs to correspond to the restriction
period of the grant of shares of restricted common stock of IMCO pursuant to
Section 6.7.  Notwithstanding the foregoing, the Term of this Agreement (as that
term is defined in Section 5.1(g)) shall not extend past that day which is the
fifth (5th) anniversary date of the Effective Date; provided, that in the event
that this Agreement has not sooner terminated, the Company and the Compensation
Committee of the Board of Directors of IMCO will review this Agreement regarding
any additional renewal thereof during that period beginning on that day which is
the fourth anniversary date of the date of the Effective Date, and that date
which is ninety (90) days before the fifth anniversary date of the Effective
Date.

     1.3  Duties and Obligations.  The Executive agrees he must devote his best
          ----------------------
efforts and all of his business time and attention to the business and affairs
of IMCO, the IMCO Group and the Company and that he will perform his duties as
an executive officer of IMCO to the reasonable satisfaction of (i) the President
and/or the Chief Executive Officer ("CEO") of IMCO or any other individual who
is designated as his superior by the CEO or the Board of Directors of IMCO (the
"Board of Directors") (hereafter the individual(s) the Executive reports to will
be referred to individually and collectively as the "Supervising Officer") and
(ii) the Board of Directors.  Subject to the direction of the Supervising
Officer, the Executive has the responsibilities and must perform such duties and
exercise such power and authority as required by the Bylaws of IMCO for the
position he holds with IMCO and including, without limitation, performing such
duties and holding such positions within the IMCO Group as may be assigned by
the Supervising Officer.  The Executive agrees that he must not delegate any or
all of his responsibilities or obligations under this agreement except as may be
authorized by the Company, the Supervising Officer or the Board of Directors.

                                  ARTICLE II
                                    SALARY

     2.1  Annual Base Salary.  The Executive shall receive an annual base salary
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from the Company with the amount established based on a determination made by
the Company and approved

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by the Board of Directors, provided, however, the annual base salary will not be
less than $300,000 per year. The annual base salary will be payable in equal
semi-monthly installments less applicable withholding) in accordance with the
customary payroll practices of the Company for the payment of executives. It is
expressly understood and agreed that the Executive will not be entitled to
director's fees for his service on the Board of Directors or any of the boards
of directors of the other companies in the IMCO Group.

     2.2  Salary Adjustments.  If the Executive's annual base salary is
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increased at any time, it shall not thereafter be decreased during the Term of
this Agreement.

                                  ARTICLE III
                        BONUSES AND INCENTIVE PAYMENTS

     3.1  Plan Bonuses and Incentive Payments.  The Executive is eligible to
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receive bonuses and other incentive payments in an amount calculated in
accordance with the provisions contained in the executive incentive plans of the
Company and IMCO, including IMCO's Annual Incentive Compensation Plan adopted in
1999 and the Performance Share Unit Plan adopted in 2000 or any successor plans
(hereafter individually and collectively referred to as the "Incentive Plans").

     3.2  Additional Bonuses and Incentive Payments.  The Company or IMCO may,
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in its sole and absolute discretion, grant bonuses and other incentive payments
to the Executive in addition to those granted under the Incentive Plans.

                                  ARTICLE IV
                  OTHER EXECUTIVE BENEFITS AND REIMBURSEMENTS

     4.1  Benefits Plan.  The Executive is entitled to full participation as a
          -------------
senior manager in IMCO's Benefits Plan, as amended from time to time, subject to
the terms and conditions of IMCO's Benefits Plan's documents governing the
various plans that are included within IMCO's Benefits Plan and applicable law
(hereinafter referred to as " IMCO's Benefits Plan"); provided, however, that
nothing contained in this Section 4.1 will be construed to obligate IMCO or the
Company to provide any benefits other than those generally provided to senior
managers under the IMCO's Benefits Plan.  As of the date hereof, the benefits
provided to the Executive under the IMCO's Benefits Plan include:  a Group Life
and Accidental Death and Dismemberment Insurance Program for Senior Management,
a Group Long Term Disability Insurance Program, a Section "125" Plan, a
Retirement Savings Plan, a major medical plan including hospital, physicians,
prescription drugs and dental benefits, an educational assistance program, a
vacation policy, a relocation expense policy, a restricted duty policy, a leave
of absence policy and the other benefit policies identified in IMCO's Human
Resources' Manual that are generally available to senior managers.  Subject to
Section 4.8 and Section 4.9 hereof, nothing contained herein shall affect the
ability of the Company, IMCO or the IMCO Group, to terminate any IMCO Benefit
Plan, or modify or amend the terms thereof.

     4.2  Stock Option Plans.  The Executive is entitled to receive the benefits
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of and to participate in IMCO's 1992 Stock Option Plan, as amended from time to
time, and the Annual

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Incentive Plan of IMCO adopted in 1996, subject to the terms and conditions that
govern these plans (hereinafter collectively referred to as the "Stock Option
Plans").

     4.3  Vacation.  The Executive is entitled to a fully paid annual vacation
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leave of four (4) weeks in the aggregate or, if the benefits are greater, the
paid vacation leave as provided for by IMCO's vacation policies that are
applicable to executive officers.

     4.4  Additional Life Insurance.  The Executive is entitled to a split-
          -------------------------
dollar life insurance policy on Executive's life, which shall pay $1,000,000
upon the death of Executive to such beneficiary or beneficiaries, as Executive
shall designate.  The aforementioned insurance policy shall be in addition to
the insurance benefits the Executive is entitled to under IMCO's Group Life and
Accidental Death and Dismemberment Insurance Program and is subject to a
separate agreement between the Executive and IMCO.

     4.5  Annual Physical.  The Executive shall be required to complete a
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mandatory annual physical at the Cooper Clinic in Dallas or at a comparable
facility.  Final payment of the annual bonus will be subject to completion of
the annual physical.

     4.6  Tax Preparation and Financial Planning. The Executive shall also be
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entitled to receive tax preparation and financial planning services to be paid
by the Company in an amount not to exceed $9,600 over the Term of this
Agreement.

     4.7  Expense Reimbursement.  The Executive shall be entitled to
          ---------------------
reimbursement of reasonable out of pocket expenses relating to the Company's
business in accordance with policies in effect for executives generally.

     4.8  Generally.  On a basis commensurate with his position with the Company
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and in accordance with the terms of the designated plan, the Executive shall be
entitled to receive such benefits and to participate fully in all other plans of
life, accident, medical payment, health and disability insurance, stock options
or other long-term incentive compensation awards, stock ownership, retirement,
pension, perquisites and other benefit plans which generally are made available
to executives of the Company or IMCO, subject to and in accordance with the
terms of such plans or awards.  In the event there is a Change in Control (as
defined in Section 5.1(f)), the Executive's benefits and participation in
incentive, savings, welfare benefit (life, accident, medical payment, health and
disability insurance, etc.), fringe benefit, pension, retirement and other
benefit plans after the Change in Control shall be at least equal to the
benefits and participation applicable to the Executive under the Company or IMCO
plans that were in effect during the 120-day period prior to the Change in
Control.  The Executive specifically agrees that the rights and benefits granted
to the Executive in the preceding sentence of this Section 4.8 when there is a
Change in Control do not apply to the Stock Option Plans or any option,
performance share unit, restricted stock, share appreciation or similar plan
that may be adopted after a Change in Control.

     4.9  Limitations.  Nothing in this Agreement, including the provisions
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contained in Articles V and VI hereof, shall limit in any way Executive's
participation in, or termination of distributions and vested rights under, any
pension, profit sharing, insurance, annual incentive plan,

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long-term incentive plan or other employee benefit plan of IMCO or the Company
to which the Executive is entitled pursuant to the terms of such plans.

                                   ARTICLE V
                           TERMINATION OF EMPLOYMENT

     5.1  Certain Definitions.  The following terms have the respective meanings
          -------------------
when utilized in this Agreement:

     (a)  "Salary" means, as of a given date, the Executive's current annual
base salary as provided for in Article II and "Bonus" means, as of a given date,
(1) any bonuses and incentive payments as provided in Article III that are due
and payable to the Executive pursuant to the terms of such incentive payments
and/or outstanding grants, and (2) the Executive's portion (segregated or
allocated share) of any bonuses and incentive payments that have been accrued by
the Company or IMCO with respect to the plans or grants as provided for in
Article III.

     (b)  "Confidential Information" means all proprietary information of a
special unique nature and value to IMCO, the IMCO Group, or the Company and all
other information of any kind, nature, type, or description that is important,
confidential or otherwise concerns any material matter affecting or relating to
the business of IMCO, the IMCO Group, or the Company, whether or not developed,
devised or otherwise created in whole or in part by the efforts of the
Executive, including, without limiting the generality of the foregoing,
information regarding and relating to rotary furnaces, sortation technologies,
process flow technologies, strategic initiatives, technological summaries, trade
secrets, improvements or know-how, concepts, ideas, discoveries, applications,
inventions, patents, patentable information and data, software, source code,
processes, products, services, plans, programs, systems, procedures, manuals,
employment agreements, confidential reports, contracts, customers, sales,
distribution, marketing, methods of operation, manufacturing, purchasing,
suppliers, research and development, engineering, financing, buyouts, joint
ventures, mergers, acquisitions, litigation and other legal matters, and
accounting and other financial information that concerns IMCO, the IMCO Group,
or the Company.  When used or referred to in this Agreement, Confidential
Information does not include any information that is now in, or hereafter comes
into, the public domain through no act or omission of the Executive; any
information that at the time of disclosure to the Executive by IMCO, the IMCO
Group, or the Company is, or thereafter becomes, through no act or omission of
the Executive, generally known in the industry in which IMCO, the IMCO Group, or
the Company is or may be engaged as evidenced by general public knowledge in an
integrated form; or any information that is already known to the Executive from
a source other than IMCO, the IMCO Group, or the Company as of the date of the
disclosure.

     (c)  "Cause" means (i) a willful failure or refusal by the Executive to
follow the reasonable instructions of the Supervising Officer or the Board of
Directors; (ii) a theft, embezzlement, or a willful commission by the Executive
of any other acts that are dishonest and materially injurious to IMCO or the
IMCO Group; (iii) the commission by the Executive of a major criminal offense;
(iv) an intentional wrongful disclosure of Confidential Information; (v) a gross
neglect of the Executive's duties; or, (vi) a material breach or violation by
the Executive of any or

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all of the covenants, warranties, agreements and obligations set forth in this
Agreement; provided that the Company has first notified the Executive in writing
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of such action or omission by the Executive, specifying in reasonable detail the
facts supporting such determination by the Company, and the Executive has not
cured the particular action or omission complained of (provided that such
particular action or omission is so capable of being cured) within a reasonable
period of time following the date of the notice.

     (d)  "Total Disability" means any mental or physical illness, condition,
disability or incapacity that prevents the Executive from reasonably discharging
his duties and responsibilities to the Company or as an executive officer of
IMCO. The Board of Directors, in its sole discretion, will determine whether the
Executive suffers from a Total Disability. If there is a disagreement or dispute
between the Board of Directors and the Executive as to whether the Executive
suffers from a Total Disability, the Executive must submit to a physical and/or
mental examination by a physician licensed under the laws of the State of Texas,
who will be selected by the Board of Directors, and such physician will make the
determination whether the Executive suffers from a Total Disability. In the
absence of fraud or bad faith, the determination of such physician will be final
and binding on the Company, IMCO and the Executive. The entire cost of any such
examination will be borne by the Company. Also, failure to comply with the Board
of Directors' request to submit to a physical and/or mental examination shall
prevent the Executive from challenging the Board of Directors' decision that the
Executive suffers from a Total Disability.

     (e)  "Resigns for Good Reason" means an Executive resignation caused by and
within ninety (90) days following the occurrence of any one of the following:
(i) a transfer or proposed transfer of Executive for a consecutive period in
excess of six months to a location outside the Dallas/Fort Worth, Texas
metropolitan area, without the Executive's prior written consent; (ii) the
Company (A) reduces the annual base salary of the Executive, or (B) modifies in
any respect the formula or method of calculation of the "target incentive award"
(or any successor equivalent amount) for the Executive (as previously determined
for the Executive for that particular fiscal year) which modification would
result in such target incentive award amount or any such equivalent amount being
reduced, in either case without the Executive's prior written consent; (iii) the
failure of the Company or IMCO to obtain the express written assumption and
agreement to timely perform the Company's obligations under this Agreement by
any successor to the Company as required by Article IX; or (iv) without limiting
the generality or effect of the foregoing, the Company's or IMCO's failure to
materially comply with any of its principal obligations hereunder, unless such
failure is caused by Executive's breach of the terms of this Agreement, or
unless such failure to comply is waived in writing by the Executive.
Notwithstanding anything else to the contrary herein, the Executive may not
Resign for Good Reason for the occurrences identified in this Section 5.1(e)(i),
(ii), or (iv), unless the Company has failed to cure the violation after the
Executive has given the Company written notice identifying the violation. The
Company shall have five (5) days from receipt of the written notice to cure the
violation or, if the violation requires a longer period to cure, the Company
pursues a course of action that causes the default to be cured within a
reasonable period of time.

     (f)  "Change in Control" means the occurrence of any of the following
events:

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          (i)   An acquisition of any voting securities of IMCO (the "Voting
     Securities") by any "person" (as the term person is used for purposes of
     Section 13(d) or Section 14(d) of the Securities Exchange Act of 1934, as
     amended (the "Exchange Act")), immediately after which such Person has
     "Beneficial Ownership" (within the meaning of Rule 13d-3 promulgated under
     the Exchange Act) of twenty-five percent (25%) or more of the combined
     voting power of IMCO's then outstanding Voting Securities; provided,
     however, in determining whether a Change in Control has occurred, Voting
     Securities which are acquired in a "Non-Control Acquisition" (as
     hereinafter defined) shall not constitute an acquisition which would cause
     a Change in Control.  A "Non-Control Acquisition" shall mean an acquisition
     by (1) an employee benefit plan (or a trust forming a part thereof)
     maintained by (A) IMCO or (B) any corporation or other Person of which a
     majority of its voting power or its voting equity securities or equity
     interest is owned, directly or indirectly, by IMCO (for purposes of this
     definition, a "Subsidiary") (2) IMCO or its Subsidiaries, or (3) any Person
     in connection with a "Non-Control Transaction" (as hereinafter defined);

          (ii)  The individuals who, as of date agreement is approved by the
     Board of Directors are members of the Board of Directors (the "Incumbent
     Board"), cease for any reason to constitute at least two-thirds of the
     members of the Board of Directors; provided, however, that if the election,
     or nomination for election by IMCO's common stockholders, of any new
     director was approved by a vote of at least two-thirds of the Incumbent
     Board, such new director shall, for purposes of this Plan, be considered as
     a member of the Incumbent Board; provided further, however, that no
     individual shall be considered a member of the Incumbent Board if such
     individual initially assumed office as a result of either an actual or
     threatened "Election Contest" (a solicitation by any Person for the purpose
     of opposing a solicitation by the Board of Directors with respect to the
     election or removal of directors at any annual or special meeting of
     stockholders of IMCO) or other actual or threatened solicitation of proxies
     or consents by or on behalf of a Person other than the Board of Directors
     (a "Proxy Contest") including by reason of any agreement intended to avoid
     or settle any Election Contest or Proxy Contest; or

          (iii) Approval by the stockholders of IMCO of:

          (1)   A merger, consolidation or reorganization involving IMCO, unless
     such merger, consolidation or reorganization is a "Non-Control
     Transaction." A "Non-Control Transaction" shall mean a merger,
     consolidation or reorganization of IMCO where:

                    (A)  the stockholders of IMCO, immediately before such
          merger, consolidation or reorganization, own directly or indirectly
          immediately following such merger, consolidation or reorganization, at
          least fifty-five percent (55%) of the combined voting power of the
          outstanding voting securities of the corporation resulting from such
          merger or consolidation or reorganization (the "Surviving
          Corporation") in substantially the same proportion as their ownership
          of the Voting Securities immediately before such merger, consolidation
          or reorganization,

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                    (B)  the individuals who were members of the Incumbent Board
          immediately prior to the execution of the agreement providing for such
          merger, consolidation or reorganization constitute at least two-thirds
          of the members of the board of directors of the Surviving Corporation,
          or a corporation beneficially directly or indirectly owning a majority
          of the Voting Securities of the Surviving Corporation, and

                    (C)  no Person other than (i) IMCO, (ii) any Subsidiary,
          (iii) any employee benefit plan (or any trust forming a part thereof)
          maintained by IMCO, the Surviving Corporation, or any Subsidiary, or
          (iv) any Person who, immediately prior to such merger, consolidation
          or reorganization had Beneficial Ownership of twenty-five percent
          (25%) or more of the then outstanding Voting Securities), has
          Beneficial Ownership of twenty-five percent (25%) or more of the
          combined voting power of the Surviving Corporation's then outstanding
          voting securities.

               (2)  A complete liquidation or dissolution of IMCO; or

               (3)  An agreement for the sale or other disposition of all or
     substantially all of the assets of IMCO and its Subsidiaries (considered on
     a consolidated basis) to any Person (other than a transfer to a
     Subsidiary).

     Notwithstanding the foregoing, a Change in Control shall not be deemed to
occur solely because any Person (the "Subject Person") acquired Beneficial
Ownership of more than the permitted amount of the then outstanding Voting
Securities as a result of the acquisition of Voting Securities by IMCO which, by
reducing the number of Voting Securities then outstanding, increases the
proportional number of shares Beneficially Owned by the Subject Persons,
provided that if a Change in Control would occur (but for the operation of this
sentence) as a result of the acquisition of Voting Securities by IMCO, and after
such share acquisition by IMCO, the Subject Person becomes the Beneficial Owner
of any additional Voting Securities which increases the percentage of the then
outstanding Voting Securities Beneficially Owned by the Subject Person, then a
Change in Control shall occur.  For purposes of this Agreement, Change in
Control shall also be deemed to include the earlier of the execution and
delivery of a binding agreement to effect a Change in Control or the actual
occurrence as set forth above which results in the Change in Control.

     (g)  "Term of this Agreement" shall mean the period commencing with the
Effective Date and ending on the Termination Date.

     (h)  "Termination Date" means the earlier of February 1, 2003 (as such date
may be extended by any extensions hereof); or the date of the Executive's death;
or the date designated in this Agreement after the Company or the Executive
gives the required notice; or as otherwise provided in this Article V or in
Article VI.

     5.2  Death of the Executive.  In the event the Executive dies during the
          ----------------------
Term of this Agreement, the Executive's employment with the Company will
automatically terminate on the date of the Executive's death.  Notwithstanding
the provisions of Article I above, in the event the

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Executive dies during the Term of this Agreement, within ninety (90) days after
the Termination Date, the Executive's estate, heirs, or beneficiaries, as the
case may be, will receive an amount in cash payable in a lump sum equal to the
sum of (a) the Executive's Salary and Bonus due and payable to the Executive on
or before the Termination Date, (b) an amount equal to the product of (i) one-
twelfth (1/12th) of Executive's Salary as in effect as of the Termination Date
times (ii) the lesser of (A) the number of months remaining prior to the end of
the Term of this Agreement, or (B) twelve (12), and (c) the value of all other
outstanding obligations of the Company or IMCO to the Executive (e.g., deferred
incentive payments or stock ownership rights) without regard as to whether they
would otherwise be due and payable as of the Termination Date. The Executive's
estate, heirs or beneficiaries, as the case may be, will also receive any
benefits that are payable to them under the plans, policies and other provisions
set forth in Article IV and Section 6.7.

     5.3  Employment Terminated by the Company.  Notwithstanding any other
          ------------------------------------
provision of this Agreement, the Company may only terminate the Executive's
employment during the Term of this Agreement in accordance with the provisions
set forth below:

     (a)  The Company may terminate the Executive's employment for Cause only if
the determination to terminate the Executive's employment for Cause is made by
an affirmative vote of at least 75% of the entire Board of Directors (not
including, for this purpose, the Executive).  If the Board of Directors makes
such a determination, the Company may then terminate the Executive's employment
for Cause.  The Termination Date will be that date which is five (5) days after
the Company has notified the Executive of the Board of Directors' decision to
terminate the Executive's employment for Cause.

     (b)  The Company may terminate the Executive's employment if he suffers
from a Total Disability for a period of more than one hundred twenty (120)
consecutive days during any twelve-month period. The Termination Date will be
thirty (30) days after the Company has notified the Executive of the Board of
Directors' decision to terminate the Executive due to a Total Disability.

     (c)  The Company, in its sole discretion, may terminate the Executive's
employment by giving him not less than thirty (30) days advance written notice
of the termination. A termination by the Company under this Section 5.3(c)
(i.e., for any reason other than those covered under Sections 5.3(a) and (b))
shall be referred to for all purposes as being "Terminated Without Cause."

     If the Executive's employment is terminated by the Company, the Company in
the ordinary and normal course of its business is obligated to continue to pay
to the Executive, the Executive's Salary and Bonus (less applicable withholding)
that are due and payable to the Executive on or before the Termination Date.
Any unpaid amount of the Executive's Salary and Bonus will be due and payable as
of the Termination Date.  The Executive will also receive the benefits and all
other amounts that he is entitled to receive pursuant to the provisions
contained in Article IV, and any amounts that the Executive is entitled to
receive pursuant to the provisions that apply to the Executive's situation in
Article VI.

     5.4  Resignation (i.e., Termination of Employment) by Executive.  If the
          ----------------------------------------------------------
Executive Resigns for Good Reason after a Change in Control, the Executive's
employment with the Company

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will terminate twenty-one (21) days after the Executive has notified the Company
of his resignation. If the Executive Resigns for Good Reason other than a
situation involving a Change in Control, the Executive's employment with the
Company will terminate forty five (45) days after the Executive has notified the
Company of his resignation. If the Executive resigns his employment for any
other reason (including retirement), the Executive's employment with the Company
will terminate sixty (60) days after the Executive has notified the Company that
he is terminating his employment. If the Executive terminates his employment,
the Company in the ordinary and normal course of its business is obligated to
continue to pay to the Executive, the Executive's Salary and Bonus (less
applicable withholding) due and payable to the Executive on or before the
Termination Date. The Executive will also receive the benefits and all other
amounts that he is entitled to receive pursuant to the provisions contained in
Article IV and any amounts that the Executive is entitled to receive pursuant to
the provisions that apply to the Executive's situation in Article VI.

     5.5  No Right to Set Off.  Except as specifically provided in Section 6.8,
          -------------------
the Company shall not be entitled to set off against the amount payable to the
Executive any amounts earned by the Executive from other employment after the
Termination Date or any amounts which might have been earned by the Executive in
other employment had he sought such other employment.  The amounts payable to
the Executive under this Agreement shall not be treated as damages but as
compensation to which the Executive is entitled by reason of termination of his
employment in the circumstances contemplated by this Agreement.

     5.6  Executive's Remedies.  In the event this Agreement is terminated
          --------------------
pursuant to any of the provisions contained in this Article V, the Company, IMCO
and the IMCO Group will be discharged from all of their obligations to the
Executive upon the payment to the Executive of the amounts required to be paid
in accordance with the provisions of the particular Sections of this Article V
under which the termination occurs. The Executive's sole and exclusive remedy
for the termination of this Agreement prior to the end of the Term of this
Agreement regardless of whether the termination is initiated by the Company or
by the Executive, and regardless whether the termination is for Cause, will be
the payment to the Executive of the amounts required to be paid in accordance
with the provisions of the particular Section of this Article V under which such
termination occurs.

     5.7  Testimony and Participation Before or After Termination.  The
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Executive agrees that both during and following the Term of this Agreement he
will be available to testify and/or participate in any proceeding (governmental
or otherwise) involving the Company, IMCO and/or the IMCO Group regarding any
subject matter occurring prior to the Termination Date or of which he otherwise
has actual knowledge; provided that the foregoing shall not require the
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Executive to provide testimony in any respect which testimony may, in
Executive's good faith belief, self-incriminate the Executive.  The Company
agrees to reimburse the Executive for the reasonable costs he incurs in
connection with his testimony or participation, including reasonable attorney
fees, unless such proceeding is due to the intentional wrongdoing or willful
neglect of the Executive or to actions taken by the Executive outside of the
Executive's authority.

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                                  ARTICLE VI
               ADDITIONAL COMPENSATION FOR CERTAIN TERMINATIONS
                         AND POST EMPLOYMENT SERVICES

     6.1  Purpose; General Summary; and Post Employment Activities.
          --------------------------------------------------------

     (a)  The Company and the Executive agree that the success and value of
IMCO's, the IMCO Group's and the Company's business depend largely on the
favorable reputation and good will that have been created by superior managerial
skills, market position, product technology, good customer relations, a stable
work force and high employee morale.  The Executive recognizes and expressly
acknowledges that his services are unique and extraordinary and that he plays an
integral and valuable role in sustaining and enhancing the progress, reputation
and good will of IMCO, the IMCO Group and/or the Company.

     Executive acknowledges that as of the time this Agreement is entered into,
the Company, IMCO and the IMCO Group are providing to the Executive, on an
initial and ongoing basis, now and throughout the Term of this Agreement,
Confidential Information and specialized training. The Company and the Executive
also agree that access to IMCO's, the IMCO Group's and the Company's customers
and Confidential Information and such specialized training is essential for the
most efficient performance of the Executive's duties and obligations. The
Executive acknowledges and expressly confirms that in the course of his
employment by the Company and in furtherance of his duties and obligations as an
executive officer of IMCO, the Executive has developed valuable banking and
financial, customer and other key relationships and has acquired (and will
continue to acquire) valuable Confidential Information that would be useful to
IMCO's, the IMCO Group's and/or the Company's competitors and, if so disclosed,
would unreasonably harm the business of IMCO, the IMCO Group and/or the Company.

     The Executive further acknowledges and specifically agrees he must at all
times act in a manner that would augment the reputation and good will of IMCO,
the IMCO Group and the Company and that it is in the best interest of the
Company and the Executive for the parties to reach a mutual agreement under
which the Executive's employment and post-employment activities are subject to
certain restrictions as a means of securing and protecting the reputation, good
will, Confidential Information and other valuable protectable interests of IMCO,
the IMCO Group and/or the Company.

     (b)  If the Executive resigns or terminates his employment for any reason
or the Executive's employment is terminated by the Company at any time during
the Term of this Agreement, the Company and the Executive expressly agree that
the Executive will be retained by the Company for a twenty-four month period
following the termination of his employment to provide services in an advisory
and consulting capacity and to prevent any other business competitive with IMCO,
the IMCO Group or the Company from securing his services and utilizing his
experience, background and expertise. During this period, the Executive shall
receive, as additional compensation, the payments enumerated in this Article VI
in exchange for the Executive's agreement to continue to actively promote,
support, consult with and advise the Company during the said twenty-four month
period. The Executive further agrees to abide by and be subject to the

                                       11
<PAGE>

restrictions as set forth in Article VII regardless of whether the Executive is
entitled to any of the payments enumerated in this Article VI.

     (c)  The Executive also acknowledges, agrees, and warrants for all purposes
that the restrictions imposed on his employment and post employment activities
contained in this Article VI and Article VII are reasonable and necessary for
the protection of the good will, reputation, Confidential Information and other
valuable protectable interests of IMCO, the IMCO Group and/or the Company and
that the additional compensation the Executive will receive, enumerated in this
Article VI, is fair and reasonable.

     6.2  Termination Without Cause or Executive Resigns for Good Reason
          --------------------------------------------------------------
Involving a Change of Control.  If during the Term of this Agreement Executive
-----------------------------
is Terminated Without Cause before that date which is 90 days prior to a Change
in Control, the Executive will receive an amount equal to 2.0 times the
Executive's "Base Amount" (as that term is defined in Section 280G of the
Internal Revenue Code of 1986, as amended (the "Code")) (the "Base Amount"),
calculated as of the Termination Date.  If during the Term of this Agreement (i)
the Executive is Terminated Without Cause on or after that date which is 90 days
before a Change in Control, or (ii) the Executive Resigns for Good Reason during
the period which begins on that date which is 90 days before a Change in Control
and ends on that date which is the second anniversary date of such Change in
Control, then in either of such events, the Executive shall be entitled to
receive an amount equal to 2.99 times (x) the Executive's Base Amount calculated
as of the Termination Date.

     The amounts described in this Section 6.2 shall be in addition to the
Salary and Bonus due and payable on or before the Termination Date and all other
payments and benefits the Executive is entitled to receive under this Agreement.
Except in the situation where the Executive is Terminated Without Cause, the
additional compensation will be paid in a lump sum on or before the Termination
Date in accordance with the normal payroll procedures for a lump sum payment, as
the same may be modified from time to time. If the Executive is Terminated
Without Cause (whether prior to or after a Change in Control), the additional
compensation will be paid in equal monthly installments over a twenty-three
month period following the Termination Date as if the Executive's employment had
continued hereunder payable in accordance with the normal payroll procedures, as
the same may be modified from time to time. In addition:

     (a)  For the lesser of (1) a period of twenty-four (24) months subsequent
to the Termination Date or (2) until the Executive obtains comparable coverage
under a subsequent employer's benefit plan or plans, IMCO will pay all of the
cost incurred by the Executive for his continued participation in IMCO's
Benefits Plan provided that his continued participation is permitted under the
general terms and provisions of the applicable plan, program and/or policy that
is included in IMCO's Benefits Plan. In the event the Executive's participation
in the Group Life and Accidental Death and Dismemberment Insurance Program for
Senior Management, the applicable Group Long Term Disability Insurance Program,
the major medical plan which includes hospital, physician, prescription drugs
and dental benefits, or any such similar plan, program, or policy is not
permitted the Company shall arrange to provide the Executive with benefits
substantially similar to those which he is entitled to receive under such plans,
programs, and policies. The benefits provided during the period of coverage
under this Section 6.2(a) shall offset any period

                                       12
<PAGE>

of coverage in which the Executive or his dependents may be entitled under the
Consolidated Omnibus Budget Reconciliation Act of 1985; and

     (b)  The Company shall promptly (and in any event within five business days
after a written request by the Executive therefor) either pay or reimburse the
Executive for the reasonable costs and expenses of any executive outplacement
firm selected by the Executive; provided, however, that the Company's liability
hereunder shall be limited to the first $20,000 of such expenses incurred by the
Executive. The Executive shall provide the Company with reasonable documentation
of the incurrence of such outplacement costs and expenses.

     6.3  Resignation by Executive Not Involving a Change in Control.
          ----------------------------------------------------------

     (a)  If the Executive Resigns for Good Reason during the Term of this
Agreement (other than a resignation covered under Section 6.2 above), then, in
addition to all Salary and Bonus due and payable on or before the Termination
Date and all other payments and benefits the Executive is entitled to receive
under this Agreement, the Executive will receive an amount equal to two times
(2x) an amount equal to Executive's highest annual base salary in effect during
the Term of this Agreement plus the average of the aggregate amounts of bonus
paid or payable to the Executive during the three (3) completed fiscal years
immediately preceding the Termination Date (or such lesser period that the
Executive has been employed by the Company).  This additional payment will be
paid in equal monthly installments over a twenty-three month period following
the Termination Date as if the Executive's employment had continued hereunder
payable in accordance with the normal payroll procedures, as the same may be
modified from time to time.

     (b)  If the Executive resigns his employment during the Term of this
Agreement in a situation other than when the Executive Resigns for Good Reason,
then, in addition to all Salary and Bonus due and payable on or before the
Termination Date and all other payments and benefits the Executive is entitled
to receive under this Agreement, the Executive will be entitled to receive as
additional compensation an amount equal to one times (1x) the Executive's
highest annual base salary in effect during the Term of this Agreement. This
additional compensation payment will be paid in equal monthly installments over
a twenty-three month period following the Termination Date as if the Executive's
employment had continued hereunder payable in accordance with the normal payroll
procedures, as the same may be modified from time to time.

     6.4  Termination for Cause.   If the Executive is terminated for Cause
          ---------------------
during the Term of this Agreement, then, in addition to all Salary and Bonus due
and payable on or before the Termination Date and all other payments and
benefits the Executive is entitled to receive under this Agreement, the
Executive will be entitled to receive an amount equal to two times (2x) his
Salary as in effect immediately prior to the Termination Date, if and only if
the Board of Directors determines in good faith and in its sole discretion that
the for Cause termination does not result from the Executive's commission of a
major criminal offense. This additional compensation payment will be paid in
equal installments over a twenty-three (23) month period following the
Termination Date as if the Executive's employment had continued hereunder
payable in accordance with the normal payroll procedures, as the same may be
modified from time to time. If the reason for the termination for Cause is that
the Executive committed a major criminal offense, the Executive shall only be

                                       13
<PAGE>

entitled to such amount of Salary and Bonus not paid as of the Termination Date.
It is expressly agreed that if there is a termination of the Executive's
employment for Cause under the provisions of Section 5.3, the Executive will not
be entitled to receive any additional amounts payable to the Executive under
Sections 6.2 or 6.3.

     6.5  Termination due to Total Disability.  If Executive's employment is
          -----------------------------------
terminated due to Total Disability, then, in addition to all Salary and Bonus
due and payable on or before the Termination Date and all other payments and
benefits the Executive is entitled to receive under this Agreement, the
Executive or his legal guardian, as the case may be, will receive an amount
equal to one-twelfth (1/12th) of Executive's Salary times the lesser of (a) the
number of months remaining prior to the expiration of the Term of this Agreement
or (b) twelve (12).  This additional compensation payment will be paid in a lump
sum amount within ninety (90) days after the Termination Date.  It is expressly
agreed that if there is a termination of the Executive's employment due to  the
Total Disability of the Executive under the provisions of Section 5.3, the
Executive will not be entitled to receive any additional amounts payable to the
Executive under Sections 6.2 or 6.3.

     6.6  No Additional Payments Upon Death.  It is expressly agreed that if the
          ---------------------------------
Executive's employment with the Company is terminated by reason of the death of
the Executive, the Executive will not be entitled to receive any additional
amounts payable to the Executive under Sections 6.2 or 6.3.

     6.7  Protection and Retention.  IMCO shall award Executive a grant of
          ------------------------
shares of restricted common stock of IMCO in accordance with the terms of the
Award Agreement evidencing such grant, a copy of which is attached hereto as
Exhibit "A".

     6.8  Mitigation of Damages.  In the event the Executive is entitled to any
          ---------------------
additional amounts provided for under this Article VI, the Executive shall not
be required to seek other employment in order to mitigate his damages hereunder,
and no compensation the Executive earns after any such termination shall be
considered to mitigate damages the Executive has incurred or to reduce any
payment the Company is obligated to make to the Executive under this Agreement,
unless the Executive violates Section 5.7, Section 6.1(b) or Article VII.
Notwithstanding anything else to the contrary contained herein, if the Executive
violates Section 5.7, Section 6.1(b) or Article VII, the Company shall be
entitled to immediately stop making any further installment payments that may be
owed under Sections 6.2, 6.3 or 6.4.

     6.9  Timing of Payment and Deductions.  Unless otherwise specifically
          --------------------------------
provided for in this Agreement, any payments payable to the Executive under this
Agreement shall be paid on the Termination Date.  The Company and IMCO shall
have the right with respect to all payments made to the Executive under this
Agreement to withhold therefrom (a) all taxes which may be required to be
deducted or withheld under any provision of applicable law (including but not
limited to state and federal income taxes, Federal Insurance Contributions Act
payments and any other required tax deduction) and (b) all other required non-
tax deductions. The Executive shall be solely responsible for the state and
federal income taxes, excise and other taxes imposed on the benefits provided
and payments made under this Agreement.

                                       14
<PAGE>

     6.10 Gross Up Payments.
          -----------------

     (a)  In the event that any payment or benefit (within the meaning of
Section 280G of the Code), to the Executive or for his benefit paid or payable
or distributed or distributable (at any time or from time to time) pursuant to
the terms of this Agreement or otherwise in connection with, or arising out of,
his employment with the Company or a change in ownership or effective control of
IMCO or the Company or of a substantial portion of the IMCO Group's consolidated
assets (a "Payment" or "Payments"), would be subject to the excise tax imposed
by Section 4999 of the Code or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, being hereinafter collectively referred to as the
"Excise Tax"), then the Executive will be entitled to receive an additional
payment or payments, as the case may be (referred to individually or
collectively as a "Gross-Up Payment") in an amount such that after payment by
the Executive of all taxes (including any interest or penalties imposed with
respect to such taxes and the Excise Tax, other than interest and penalties
imposed by reason of the Executive's failure to file timely a tax return or pay
taxes shown due on his return), including any Excise Tax imposed upon the Gross-
Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments.

     (b)  An initial determination as to whether a Gross-Up Payment is required
pursuant to this Agreement and the amount of such Gross-Up Payment shall be made
at the Company's expense by an accounting firm selected by the Company and
reasonably acceptable to the Executive which is designated as one of the largest
national accounting firms in the United States (the "Accounting Firm").  The
Accounting Firm shall provide its determination (the "Determination"), together
with detailed supporting calculations and documentation to the Company and the
Executive within fifteen (15) days of the Date of Termination if applicable, or
such other time as requested by the Company or by the Executive (provided the
Executive reasonably believes that any of the Payments may be subject to the
Excise Tax) and if the Accounting Firm determines that no Excise Tax is payable
by the Executive with respect to a Payment or Payments, it shall furnish the
Executive with an opinion reasonably acceptable to the Executive that he has
substantial authority not to report any Excise Tax on his federal tax return
with respect to any such Payment or Payments.  Within ten (10) days of the
delivery of the Determination to the Executive, the Executive shall have the
right to dispute the Determination (the "Dispute").  The Gross-Up Payment, if
any, as determined pursuant to this Section 6.10(b) shall be paid by the Company
to the Executive within five days of the receipt of the Accounting Firm's
determination.  The existence of the Dispute shall not in any way affect the
Executive's right to receive the Gross-Up Payment in accordance with the
Determination.  Upon the final resolution of a Dispute, the Company shall
promptly pay to the Executive any additional amount required by such resolution.
If there is no Dispute, the Determination shall be binding, final and conclusive
upon IMCO, the Company and the Executive.

     (c)  The Executive shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment
hereunder of a Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than ten (10) business days after the Executive knows
of such claim and shall inform the Company of the nature of such claim and the
date on which such claim is requested to be paid. The Executive shall not pay
such claim prior to the expiration of the thirty (30) day period following the
date on which he gives such notice to the

                                       15
<PAGE>

Company (or such shorter period ending on the date that any payment of taxes
with respect to such claim is due). If the Company does not notify the Executive
in writing that it desires to contest such claim prior to the expiration of such
period, the Executive shall be paid within five (5) business days an amount
equal to the Gross-Up Payment required to be paid as a result of the claim. If
the Company notifies the Executive in writing prior to the expiration of such
period that it desires to contest such claim, the Executive shall:

          (i)   give the Company any information reasonably requested by the
     Company relating to such claim,

          (ii)  take such action in connection with contesting such claim as the
     Company shall reasonably request in writing from time to time, including,
     without limitation, accepting legal representation with respect to such
     claim by an attorney reasonably selected by the Company,

          (iii) cooperate with the Company in good faith in order to effectively
     contest such claim,

          (iv)  permit the Company to participate in any proceedings relating to
     such claim, provided, however, that the Company shall bear and pay directly
     all costs and expenses (including additional interest and penalties)
     incurred in connection with such contest and shall indemnify and hold the
     Executive harmless, on an after-tax basis, for any Excise Tax or income
     tax, including interest and penalties with respect thereto, imposed as a
     result of such representation and payment of costs and expenses. Without
     limitation of the foregoing provisions of this Section 6.10(c), the Company
     shall control all proceedings taken in connection with such contest and, at
     its sole option, may pursue or forego any and all administrative appeals,
     proceedings, hearings and conferences with the taxing authority in respect
     of such claim and may, at its sole option, either direct the Executive to
     pay the tax claimed and sue for a refund, or contest the claim in any
     permissible manner, and the Executive agrees to prosecute such contest to a
     determination before any administrative tribunal, in a court of initial
     jurisdiction and in one or more appellate courts, as the Company shall
     determine; provided, however, that if the Company directs the Executive to
     pay such claim and sue for a refund, the Company shall advance the amount
     of such payment to the Executive, on an interest-free basis and shall
     indemnify and hold the Executive harmless, on an after-tax basis, from any
     Excise Tax or income tax, including interest or penalties with respect
     thereto, imposed with respect to such advance or with respect to any
     imputed income with respect to such advance; and further provided that any
     extension of the statute of limitations relating to payment of taxes for
     the taxable year of the Executive with respect to which such contested
     amount is claimed to be due is limited solely to such contested amount.
     Furthermore, the Company's control of the contest shall be limited to
     issues with respect to which a Gross-Up Payment would be payable hereunder
     and the Executive shall be entitled to settle or contest, as the case may
     be, any other issue raised by the Internal Revenue Service or any other
     taxing authority.

                                       16
<PAGE>

     (d)  If, after the receipt by the Executive of an amount advanced by the
Company pursuant to Section 6.10(c), the Executive becomes entitled to receive
any refund with respect to such claim, the Executive shall (subject to the
Company's complying with the requirements of Section 6.10(c)) promptly pay to
the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 6.10(c), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of thirty (30) days after such determination, then such advance shall be
forgiven and shall not be required to be repaid and the amount of such advance
shall offset, to the extent thereof, the amount of Gross-Up Payment required to
be paid.

                                  ARTICLE VII
                       CERTAIN RESTRICTIONS ON EXECUTIVE

     7.1  General.  In consideration of the Company entering into this contract
          -------
for employment, the Company furnishing the Executive, now and throughout the
Term of this Agreement, Confidential Information and specialized training on an
initial and ongoing basis, and the covenants and obligations of the Company
contained in this Agreement, including the covenants and obligations regarding
the additional compensation set forth in Article VI, the Executive hereby
covenants, warrants and agrees to abide by and be subject to the restrictions
and agreements as set forth below in this Article VII.

     7.2  Non-Disclosure of Confidential Information.  The Executive hereby
          ------------------------------------------
covenants, warrants and specifically agrees as follows:

     (a)  All of the Confidential Information is a valuable asset and is, will
be, and shall at all times remain the sole and exclusive property of IMCO, the
IMCO Group or, if applicable, the sole and exclusive property of the Company.

     (b)  All Confidential Information disclosed to the Executive or made known
to the Executive (regardless of when or how disclosed or made known) as a result
of his employment by the Company, whether or not with the knowledge and
permission of IMCO, the IMCO Group, or the Company, will be held strictly
confidential and only utilized during the course of his employment at the
Company. The Executive shall hold the said Confidential Information in a
fiduciary capacity for the benefit of IMCO, the IMCO Group, and/or the Company
and will not use the Confidential Information in any way detrimental to IMCO,
the IMCO Group, or the Company.

     (c)  The Executive will not at any time during or after the Term of this
Agreement, in any fashion, form or manner, either directly or indirectly,
publish, reveal, divulge, disclose, disseminate, use (or communicate to any
individual, firm, partnership, corporation, association, enterprise,
organization, or other entity, person or business) any Confidential Information,
or otherwise make it possible for any individual, firm, partnership,
corporation, association, enterprise, organization, or other entity, person or
business to have access to any Confidential Information, except (1) with

                                       17
<PAGE>

the express permission of IMCO and/or the Company, (2) in performance of
Executive's duties and obligations to the Company and/or IMCO, or (3) as
otherwise required to be disclosed by law, judicial or administrative process.
If the Executive becomes legally compelled, as concluded by the written opinion
of counsel, (by oral questions, interrogatories, request for information, or
documents, subpoena, civil investigative demand or similar process) to disclose
any Confidential Information, the Executive will provide the Company with prompt
written notice so that the Company and/or IMCO may seek a protective order or
other appropriate remedy. It is further agreed that if, in the absence of a
protective order or the receipt of a waiver hereunder, the Executive is,
nonetheless, in the opinion of his counsel, compelled to disclose any
Confidential Information or else stand liable for contempt or suffer other
censure or penalty, such information which is legally required to be disclosed
may be disclosed but the Executive will exercise his best efforts to obtain
reliable assurances that confidential treatment will be accorded the
Confidential Information so disclosed.

     (d)  Upon termination of the Executive's employment with the Company for
Cause or Without Cause or upon the request of the Company at any time, the
Executive will promptly return to the Company, and shall retain no copies of,
all Confidential Information prepared by the Executive or coming into the
Executive's possession.

     (e)  IMCO, the IMCO Group and the Company derive a competitive advantage in
the marketplace by maintaining the Confidential Information and knowledge
thereof as secret and unavailable to the Company's, IMCO's and the IMCO Group's
competitors and the general public.

     7.3  Non-Competition.  The Executive acknowledges that at the time this
          ---------------
Agreement is entered into, the Company, IMCO and the IMCO Group are furnishing
the Executive, now and throughout the Term of this Agreement, Confidential
Information and specialized training on an initial and ongoing basis, and that
in consideration thereof, in addition to the other consideration and benefits
being provided to Executive as recited herein.  The Executive covenants and
specifically agrees with the Company as follows:

     (a)  The Executive, without the prior written consent of the Company, will
not at any time, during the Term of this Agreement and for a period of two (2)
years thereafter (or for such lesser period should the Company so determine),
directly or indirectly: (i) compete with IMCO, the IMCO Group or the Company in
any manner within the United States, Germany, Wales, or within any other
country, territory or possession where IMCO, the IMCO Group, or the Company
operate (collectively the aforementioned geographic areas are hereinafter
referred to as the "Territory"); (ii) be employed by or serve as an employee,
agent, officer, representative, director of, or as a consultant to any
individual, firm, partnership, corporation, association, enterprise,
organization, or other entity, person or business (other than for IMCO, the IMCO
Group or the Company) that competes with IMCO, the IMCO Group or the Company in
any manner within the Territory; (iii) solicit, attempt to solicit, provide
goods or services to, or attempt to provide goods or services to, any of the
customers or business contacts of IMCO, the IMCO Group or the Company that exist
during the Term of this Agreement; or (iv) acquire or own in any manner any
interest in, or loan any amount to, any individual, firm, partnership,
corporation, association, enterprise, organization, or other entity, person, or
business that competes with IMCO, the IMCO Group or the Company in any manner
within the Territory, except the Executive may own up to two percent (2%) of any
class of

                                       18
<PAGE>

issued and outstanding securities of a competitive corporation whose shares are
regularly traded on a national securities exchange or on the over-the-counter
market.

     (b)  The Executive, without the prior written consent of the Company, will
not at any time, during the Term of this Agreement and for a period of two (2)
years thereafter, directly or indirectly, for himself or for any other
individual, firm, partnership, corporation, association, enterprise,
organization, or other entity, person, or business, solicit, or in any manner
attempt to influence or induce any employee of IMCO, the IMCO Group or the
Company to leave the employment of IMCO, the IMCO Group or the Company as the
case may be.

     7.4  Reasonableness, Revival and Reliance.
          ------------------------------------

     (a)  The provisions contained in Sections 7.2 and 7.3 are the result of
specific negotiations between the Executive and the Company, and the Executive
hereby specifically agrees that the provisions are reasonable under the
circumstances. The Executive further agrees that if, despite the express
agreement of the parties to this Agreement, a court should hold any portion of
Sections 7.2 or 7.3 unenforceable for any reason, the maximum restrictions that
are reasonable under the circumstances, as determined by the court, will be
substituted for the restrictions held unenforceable. The Executive also
expressly agrees that in the event a court of any jurisdiction within the
Territory (other than a court with jurisdiction in the State of Texas) holds the
covenants and agreements contained in Sections 7.2 and/or 7.3 wholly
unenforceable by reason of the breadth of their scope or otherwise, it is the
intention of the parties that such determination not bar or in any way affect
the Company's right to the relief in the courts of any other jurisdiction within
the Territory, as to breaches of such covenants and agreements in such other
respective jurisdictions, the covenants and Agreements in Sections 7.2 and 7.3
as they relate to each jurisdiction within the Territory being, for this
purpose, severable into diverse and independent covenants and agreements.

     (b)  The Executive's covenants, warranties and agreements set forth herein
shall be revived continuously throughout the Executive's employment by the
Company.

     (c)  The Company is materially relying upon each of the Executive's
representations, covenants, warranties and agreements in entering into this
Agreement and as a condition for paying the additional compensation under
Article VI.

     7.5  Injunctions.  Without intending to limit the remedies available to the
          -----------
Company, IMCO, or the IMCO Group, the Executive expressly recognizes and
acknowledges that a breach or violation by the Executive of any of the
covenants, warranties, agreements, or other provisions contained in this Article
VII will cause material irreparable injury to the Company, IMCO and/or the IMCO
Group for which there is not an adequate remedy at law, that it may not be
possible to measure damages for such injuries precisely, and that in the event
of such a breach or violation or the threat thereof, the Company, IMCO, and/or
the IMCO Group will be entitled to obtain a temporary restraining order and/or a
preliminary or permanent injunction restraining the Executive and/or his
affiliates, employees, associates, partners, or agents, either directly or
indirectly, from engaging in activities prohibited by this Article VII and/or
such other relief as may be required to specifically enforce any of the
covenants, warranties, agreements, or other provisions in this

                                       19
<PAGE>

Article VII. Such right to a temporary restraining order and/or injunction will
be cumulative and in addition to whatever other rights or remedies the Company,
IMCO and/or the IMCO Group may possess, at law or in equity. Nothing contained
in this Agreement will be construed to prevent the Company, IMCO, and/or the
IMCO Group from seeking and recovering for the damages suffered by any of them
or any of their employees as a result of any breach or violation by the
Executive and/or his affiliates, employees, associates, partners, or agents of
the Executive's covenants, warranties, agreements, or other provisions contained
in this Agreement. The Executive by execution of this Agreement agrees to submit
to the jurisdiction of the federal and state courts of the State of Texas.

                                 ARTICLE VIII
                                INDEMNIFICATION

     During the Term of this Agreement, to the fullest extent permitted by
applicable law in effect on the Effective Date of this Agreement and to such
greater extent as applicable law may hereafter from time to time permit, the
Company shall advance and be responsible for all Expenses (as that term is
defined below) and the Company specifically agrees to and shall defend,
indemnify and hold harmless the Executive and his respective employees,
attorneys, agents, advisors (including, without limitation, attorneys,
accountants, consultants and financial advisors), successors and assigns, from
and against any and all claims, losses, damages, causes of action, demands,
penalties, fines, costs, expenses, suits and other liability of every kind
(including, without limitation all expenses of litigation, court costs,
judgments and interest thereon, and attorney fees) arising out of or resulting
from all acts or decisions made by the Executive while performing his duties and
obligations in accordance with the provisions of this Agreement excepting herein
any claims, losses, damages, causes of action, demands, penalties, fines, costs,
expenses, suits or other liability of every kind that results from the
negligence or misconduct of the Executive or involves a dispute between or among
the parties to this Agreement.  The Company will choose the legal counsel to
defend the Executive and will pay all attorney fees and other expenses and costs
associated with such litigation.  In the event that counsel of the Company's
choice must be disqualified from representing the Company and the Executive
together, then the Executive has the right to select his own counsel, whose
reasonable fees will be paid by the Company.  All agreements and obligations of
the Company contained herein shall continue for so long as the Executive shall
be, or could become, subject to any possible claim or legal proceeding in
respect of which the Executive is granted rights of indemnification or
advancement of Expenses hereunder.  "Expenses" shall include all reasonable
attorneys' fees, retainers, court costs, transcript costs, fees of experts,
witness fees, travel expenses, duplicating costs, printing and binding costs,
telephone charges, postage, delivery service fees, and all other disbursements
or expenses of the types customarily incurred in connection with prosecuting,
defending, preparing to prosecute or defend or investigating claims or legal
proceedings.

                                  ARTICLE IX
                             SUCCESSOR TO COMPANY

     The Company and IMCO agree to require any successor, whether direct or
indirect, whether by purchase, merger, consolidation or otherwise, who succeeds
to all or most of the business or properties and assets of IMCO to execute and
deliver to the Executive a written instrument in form

                                       20
<PAGE>

and in substance reasonably satisfactory to the Executive and his legal counsel
pursuant to which the successor agrees to assume and to timely perform or to
cause to be timely performed all of the Company's and IMCO's covenants, and
agreements set forth in this Agreement (a ASuccessor Agreement"). The failure of
the Company or IMCO to cause any successor to execute and deliver a Successor
Agreement to the Executive (a) will constitute a breach of the provisions of
this Agreement by the Company and IMCO, and (b) the Executive, at his sole
option, may resign and thereby terminate his employment by the Company. If the
Executive resigns due to the failure of any successor to execute and deliver a
Successor Agreement, the termination of the Executive's employment will be
treated (for all purposes) as a termination where the Executive Resigns for Good
Reason after a Change in Control. As used herein, the terms "the Company" and
"IMCO" shall include any successor to their respective businesses and/or assets
as aforesaid which executes and delivers the Successor Agreement as contemplated
by this Article IX or which otherwise becomes bound by the terms and provisions
hereof by operation of law.

                                   ARTICLE X
                                  ARBITRATION

     Except as noted below, any dispute arising out of this Agreement or the
performance of its provisions shall be settled by binding arbitration in Dallas
County, Texas in accordance with the rules of the American Arbitration
Association then in effect, and judgment may be entered upon the award by any
court having jurisdiction over the matter. The Company and the Executive
expressly agree that this Article X does not apply to any disputes that touch or
concern the provisions set forth in Section 5.7, Section 11.1, Section 11.2, or
Article VII, including any action taken by the Company, IMCO and/or the IMCO
Group to specifically enforce the provisions set forth in Article VII. Disputes
related to matters so excepted shall, in the absence of further agreement
between the parties, be resolved in a court of competent jurisdiction located in
Dallas County, Texas.

                                  ARTICLE XI
                                 MISCELLANEOUS

     11.1  Non-Defamation.  Unless authorized in writing by the Company or the
           --------------
Board of Directors, the Executive expressly agrees that he will not make or
publish any statement or make any remark or comment, either orally or in
writing, which is intended to or which reasonably may be expected to injure,
discredit, prejudice, criticize, embarrass, disparage, besmirch or defame (a)
IMCO, the IMCO Group, or the Company; (b) the stockholders, officers or
directors of IMCO; or (c) IMCO's, the IMCO Group's and/or Company's business,
reputation, method of doing business, relationships with its customers or
suppliers or relations with creditors, regardless of whether such action by
Executive would constitute a cause of action for libel, slander, false light or
defamation.  Executive further agrees that he will not commit damage to the
property of IMCO, the IMCO Group or the Company, or otherwise engage in any
misconduct, which is injurious to the business or reputation of IMCO, the IMCO
Group, or the Company.

     11.2  Further Assurances.  The Executive agrees and assures the Company
           ------------------
that he will do all such further acts and things (and execute, acknowledge and
deliver all such further documents and instruments) that have not been
specifically recited in this Agreement that may be useful or

                                       21
<PAGE>

necessary to carry out the covenants, warranties, agreements and other
provisions contained in this Agreement.

     11.3  Notices.  All notices, requests, demands, replies, or other
           -------
communications (hereinafter severally and collectively called "notice") called
for or permitted to be given, made or accepted by either party must be in
writing, and shall be deemed to have been duly given when delivered personally
or when deposited in the United States mail, postage prepaid and certified or
registered and addressed to the party (or their respective heir, successor,
legal representative, or assign) to be notified, with return receipt requested,
or by a confirmed facsimile , when appropriate, addressed to the party to be
notified.  Notice given in any other manner shall be effective only if and when
received by the party to be notified.  For purposes of notice, the addresses of
the parties shall, until changed as herein provided, be as follows:

     If the Company:                IMCO Management Partnership, L.P.
                                    5215 North O' Connor Blvd, Suite 1500
                                    Irving, Texas 75039
                                    Attention:  Chief Executive Officer

     If to IMCO:                    IMCO Recycling Inc.
                                    5215 North O' Connor Blvd, Suite 1500
                                    Irving, Texas 75039
                                    Attention:  Chief Executive Officer

     If to the Executive:           Richard L. Kerr
                                    7532 Sweetgum Drive
                                    Irving, Texas 75063

     The parties hereto and their respective heirs, successors, legal
representatives, and assigns shall have the right from time to time and at any
time to change their respective addresses and each shall have the right to
specify as its address any other address by at least fifteen (15) days' written
notice to the other party given in the manner provided herein.

     11.4  Governing Law and Venue.  THE PARTIES HERETO ACKNOWLEDGE AND
           -----------------------
EXPRESSLY AGREE THAT THIS AGREEMENT AND PERFORMANCE HEREUNDER, ALL SUITS AND
SPECIAL PROCEEDINGS HEREUNDER, AND ALL OTHER INSTRUMENTS EXECUTED WITH IT SHALL
BE GOVERNED BY, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF TEXAS, THE STATE IN WHICH THE PRINCIPAL EXECUTIVE OFFICES OF THE
COMPANY ARE LOCATED, WITHOUT REGARD TO CONFLICT OF LAW RULES THAT WOULD CAUSE
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION, EXCEPT ONLY TO THE EXTENT
THAT IT IS MANDATORY THAT THE LAW OF SOME OTHER JURISDICTION MUST APPLY. THE
PARTIES EXPLICITLY AGREE THAT VENUE FOR ANY ACTION BROUGHT WITH RESPECT HERETO
WILL BE IN DALLAS COUNTY, TEXAS.

                                       22
<PAGE>

     11.5  Entire Agreement.  This Agreement constitutes the entire
           ----------------
understanding between the parties with respect to the subject matter hereof,
superseding and merging into this Agreement (whether written or oral) all prior
discussions, negotiations, representations, promises, statements, contracts or
agreements between the parties.

     11.6  Amendment, Waiver, or Modifications.  NO WAIVERS, VARIATIONS,
           -----------------------------------
MODIFICATIONS, CHANGES OR AMENDMENTS HEREIN OR HEREOF SHALL BE BINDING UPON ANY
PARTY HERETO UNLESS IN WRITING AND DULY EXECUTED BY THE PARTY TO BE CHARGED
THEREWITH, AND NO EVIDENCE OF WAIVER OR ANY MODIFICATION SHALL BE OFFERED OR
RECEIVED IN EVIDENCE IN ANY PROCEEDING, ARBITRATION OR LITIGATION BETWEEN THE
PARTIES HERETO ARISING OUT OF OR EFFECTING THIS AGREEMENT, OR THE RIGHTS OR
OBLIGATIONS OF ANY PARTY HEREUNDER, UNLESS SUCH WAIVER, VARIATION, MODIFICATION,
CHANGE OR AMENDMENT IS IN WRITING, DULY EXECUTED AS AFORESAID.

     11.7  Successors and Assigns.  Subject in all respects to the limitations
           ----------------------
on transferability by the Executive contained in this Section 11.7, this
Agreement and the promises, conditions, terms, covenants, representations,
warranties, rights, obligations, indemnities, agreements, and other provisions
herein contained shall extend to and be binding upon, and inure to the benefit
of, the heirs, administrators, personal representatives, successors and assigns
of each of the parties hereto.  The Executive acknowledges that this Agreement
is a personal services contract and that he may not assign this Agreement or any
of the rights and obligations contained herein without the prior written consent
of the Company.  Any assignment made by the Executive without such written
consent of the Company shall be void.

     11.8  References, Headings, and Captions.  All references to "Article(s),"
           ----------------------------------
and  "Section(s)" contained herein are, unless specifically indicated otherwise,
references to Articles and Sections of this Agreement.  The captions, Article
and Section headings in this Agreement are inserted for convenience only; are in
no way intended to define or limit the scope, extent or intent of this Agreement
or any of the provisions hereof; and shall not affect the meaning,
interpretation or construction of any provision of this Agreement.

     11.9  Number, Gender and Deletions.  Unless the context otherwise clearly
           ----------------------------
indicates, the singular shall include the plural whenever and as often as may be
appropriate and the neuter, masculine and feminine genders shall include each
other.  If any language is stricken or deleted from this Agreement, such
language shall be deemed never to have appeared herein and no other implication
shall be drawn therefrom.

     11.10 Deemed Jointly Drafted.  This Agreement is deemed to be jointly
           ----------------------
drafted by the parties for all purposes and the rules of construction that a
document is to be construed most strictly against the party who prepared the
same will not be applied. Each party hereto acknowledges that they have read and
understand all parts of this Agreement, have had the opportunity to have the
benefit of counsel of the party's choice and an opportunity for the independent
advice of their chosen counsel with regard to the preparation and execution of
this Agreement.

                                       23
<PAGE>

     11.11  Third Parties.  Except for IMCO and the IMCO Group, nothing in this
            -------------
Agreement is intended or should be construed to create any right on behalf of
anyone not a party.

     11.12  Survival of Obligations.  The covenants, agreements, indemnities,
            -----------------------
warranties, rights and obligations of the Company, IMCO and the IMCO Group under
this Agreement, and the covenants, agreements, indemnities, warranties, rights
and obligations of the Executive under this Agreement shall survive the
termination of this Agreement for any reason including, but not limited to, the
termination of the Executive's employment with the Company regardless of whether
the Executive's employment is terminated, voluntarily or involuntarily, by the
Company or the Executive, for Cause or Without Cause, or the Executive Resigns
for Good Reason.  All covenants, agreements, indemnities, warranties, rights and
obligations contained herein shall continue for so long as necessary in order
for the Company, IMCO and/or the Executive to enforce their rights hereunder.

     11.13  Severability.  If any agreement, warranty, covenant, condition,
            ------------
term, or other provision of this Agreement is found to be illegal by a final
judgment of a court having jurisdiction, or if the application thereof to any
party or in any circumstance shall to any extent be judicially determined to be
invalid or unenforceable, (a) the remainder of this Agreement, or the
application of such agreement, warranty, covenant, condition, term, or other
provision to persons or in circumstances other than those to which it is held
invalid or unenforceable, shall not be affected thereby, and each agreement,
warranty, covenant, condition, term, and other provision of this Agreement shall
be valid and enforceable to the fullest extent permitted by law, and (b) in lieu
of such illegal, invalid, or unenforceable provision, there shall be added
automatically as a part of this Agreement a provision that comes closest to
expressing the intention of such illegal, invalid, or unenforceable provision as
may be legal, valid, and enforceable.

     11.14  Attorney Fees.  In the event that any litigation arises (including a
            -------------
dispute that will be settled through arbitration pursuant to Article X) between
or among the parties, based, in whole or in part, on this Agreement or any or
all of the provisions contained herein, the prevailing party in the litigation
is entitled to recover from the losing party, and will be awarded by a court of
competent jurisdiction, any and all fees and disbursements of trial and
appellate counsel paid, incurred or suffered by the prevailing party as the
result of, arising from, or in connection with the litigation.

     11.15  Counterparts.  This Agreement may also be executed in one or more
            ------------
counterparts, each of which, for all purposes, shall be deemed an original and
all of such counterparts, taken together, shall constitute one and the same
Agreement.

     11.16  Joint and Several Liability. Each of the obligations imposed in this
            ---------------------------
Agreement on the Company and/or IMCO are joint and several.

                                       24
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written.

IMCO MANAGEMENT PARTNERSHIP, L.P.  EXECUTIVE

By:  IMCO Recycling Inc., its General Partner

By:     ____________________________        __________________________________
                                                       Richard L. Kerr
Title:  ____________________________

IMCO RECYCLING INC.

By:     ____________________________

Title:  ____________________________

                                       25<PAGE>

                                                                   EXHIBIT 10.24

                          MODIFIED EARN-OUT AGREEMENT

     THIS MODIFIED EARN-OUT AGREEMENT (the "Agreement"), dated as of May 31,
2000, is by and among IMCO RECYCLING INC., a Delaware corporation ("IMCO"),
MIDWEST ZINC CORPORATION, formerly known as Midwest Zinc-Millington, Inc., a
Delaware corporation ("Midwest"), M. RUSS ROBINSON, a resident of Harris County,
Texas, and HOWARD ROBINSON, a resident of Harris County, Texas, ("Employed
Sellers").

                             W I T N E S S E T H:
                             - - - - - - - - - -

     WHEREAS, IMCO and the Employed Sellers, among others, entered into that
certain Memorandum of Purchase and Sale Agreement (the "Purchase Agreement")
dated as of July 21, 1998, pursuant to which IMCO acquired all of the
outstanding shares of capital stock of U.S. Zinc Corporation, a Delaware
corporation (the "Company"), from the Employed Sellers, among others; and

     WHEREAS, in connection with the Purchase Agreement, IMCO and the Employed
Sellers entered into that certain Earn-Out Agreement dated July 21, 1998, as
modified by that certain Memorandum dated effective December 30, 1999 by and
between IMCO and the Employed Sellers (collectively, the "1998 Earn-Out
Agreement"). A copy of the 1998 Earn-Out Agreement is attached hereto as Exhibit
A; and

     WHEREAS, commensurate with the execution of this Agreement, Midwest has
agreed to loan Weed Street L.L.C., an Illinois limited liability company ("Weed
Street"), $2,440,000 as evidenced by a promissory note of even date herewith to
be made by Weed Street to and in favor of Midwest in the original principal
amount of $2,440,000 (the "Note") and the Employed Sellers have agreed to
guaranty the obligations arising under the Note as evidenced by a guaranty of
even date herewith executed by the Employed Sellers in favor of Midwest (the
"Guaranty"); and

     WHEREAS, to secure repayment of the "Borrower's Liabilities" (as that term
is defined in the Note and Guaranty) and as an inducement to Midwest to enter
into and consummate the "Put Agreement" (as that term is defined in the Note),
the Employed Sellers desire to (i) direct IMCO to pay all net Earn-Out
Distributions to Midwest to be applied to the Borrower's Liabilities under the
Note and (ii) provide Midwest with a security interest in all of their right,
title and interest in and to this Agreement including, without limitation, the
Earn-Out Distributions (collectively, the "Earn-Out Property"), on the terms and
conditions hereinafter provided; and

     WHEREAS, IMCO, Midwest and the Employed Sellers desire that this Agreement
replace and supercede the 1998 Earn-Out Agreement;

     NOW, THEREFORE, in consideration of the mutual covenants contained herein
and the consummation of the loan evidenced by the Note the parties hereto agree
as follows:
<PAGE>

     1.  Definitions. Capitalized terms used but not defined herein shall have
the same meanings ascribed to such terms in the Purchase Agreement. In addition,
the following terms have the meanings specified or referred to in this Section
1.

     "Earn-Out Distributions", "Earn-Out Periods" and "Earn-Out Term" shall have
the respective meanings ascribed to those terms in Section 2(a).

     "Earn-Out Threshold" shall have the meaning ascribed to that term in
Section 2(d).

     "EBITDA" shall have the meaning ascribed to that term in Section 2(b).

     "Initial Period" shall mean that time period commencing July 1, 1998 and
ending on December 31, 1998.

     "Zinc-Related Operations" means any other present or future business and
operations of IMCO and its Subsidiaries (including that of Interamerican Zinc,
Inc., an existing Subsidiary of IMCO) engaged principally in the business of
recycling, processing and selling zinc and derivative products therefrom.

     2.  Earn-Out Distributions.

     (a) Subject to the terms and conditions of this Agreement, the Employed
Sellers shall be entitled to receive earn-out distributions, if any, as they are
earned as provided herein (the "Earn-Out Distributions"). Such amounts shall be
earned and shall accrue over that certain period beginning January 1, 1999 and
ending June 30, 2002 (the "Earn-Out Term"). Within the Earn-Out Term, there will
be four Earn-Out Periods: the first Earn-Out Period to commence on January 1,
1999 and terminate on December 31, 1999 (the "1999 Earn-Out Period"); the second
Earn-Out Period to commence on January 1, 2000 and terminate on December 31,
2000 (the "2000 Earn-Out Period"); the third Earn-Out Period to commence on
January 1, 2001 and terminate on December 31, 2001 (the "2001 Earn-Out Period");
and the fourth Earn-Out Period to commence on January 1, 2002 and terminate on
June 30, 2002 (the "2002 Earn-Out Period").

     (b) Subject to Section 2(e)(iii) below, any Earn-Out Distribution to be
paid to the Employed Sellers for any Earn-Out Period shall be in an aggregate
amount equal to a percentage (the "Applicable Percentage") (which, except as
otherwise expressly set forth herein, shall be 60%) of the amount by which the
consolidated Earnings Before Interest Expense, Income Taxes, Depreciation and
Amortization for such Earn-Out Period, as determined on a consolidated basis in
accordance with GAAP consistently applied from period to period ("EBITDA"), of
the Company and its Subsidiaries (including that of Western Zinc, Inc. and
MetalChem, Inc.) and IMCO's other Zinc-Related Operations (including any Zinc-
Related Operations acquired by IMCO or any of its Subsidiaries during the Earn-
Out Period) exceed the Earn-Out Threshold (as defined below).

                                       2
<PAGE>

     (c) The aggregate amount of all Earn-Out Distributions, if any, to be paid
by IMCO with respect to the entire Earn-Out Term shall not in any event exceed
$10,625,000; any liability of IMCO hereunder to pay any Earn-Out Distributions
to the Employed Sellers shall terminate upon the payment by IMCO of aggregate
Earn-Out Distributions equal to $10,625,000. In addition, the maximum amount of
the Earn-Out Distributions, if any, which shall be required to be paid by IMCO
with respect to each of the 1999, 2000 and 2001 Earn-Out Periods shall be
$3,350,000 for the 1999 Earn-Out Period, $3,750,000 for the 2000 Earn-Out Period
and $3,300,000 for the 2001 Earn-Out Period. There shall be no maximum amount of
Earn-Out Distributions with respect to the 2002 Earn-Out Period.

     (d) As used herein, the term "Earn-Out Threshold" shall mean:

         (i) The Earn-Out Threshold prior to any adjustment described herein
     shall be (w) $13,680,000 for the 1999 Earn-Out Period, (x) $12,150,000 for
     the 2000 Earn-Out Period, (y) $12,320,000 for the 2001 Earn-Out Period, and
     (z) $6,060,000 for the 2002 Earn-Out Period. In addition, although no Earn-
     Out Distribution will be earned or paid with respect to the Initial Period,
     the Earn-Out Threshold with respect to the Initial Period shall, for the
     purposes of this Section 2.4(d), be $5,250,000.

          (ii) For each Earn-Out Period following an Earn-Out Period or the
     Initial Period in which any additional Zinc-Related Operation is acquired
     by IMCO or its Subsidiaries for a purchase price equal to $25,000,000 or
     less, the Earn-Out Threshold for such period shall be increased by an
     amount equal to 18% (9% in the case of the 2002 Earn-Out Period) of such
     purchase price of such after-acquired Zinc-Related Operation. In the event
     that the purchase price with respect to any acquisition of a Zinc-Related
     Operation is greater than $25,000,000, then the 18% multiplier set forth
     above in this Section 2(d)(ii) shall not be applicable, and substituted in
     lieu thereof with respect to any such acquisition shall be a multiplier of
     15%; and the multiplier with respect to any such acquisition regarding the
     2002 Earn-Out Period shall be 7.5% instead of 9%.

         (iii) For the Initial Period and for each of the 1999, 2000 and 2001
     Earn-Out Periods, to the extent that the consolidated EBITDA of the Company
     and its Subsidiaries (including that of Western Zinc, Inc. and MetalChem,
     Inc.) and IMCO's other Zinc-Related Operations for the Initial Period or
     such Earn-Out Period exceeds the sum of (A) the Earn-Out Threshold (as it
     may be adjusted as herein provided) with respect to the Initial Period or
     such Earn-Out Period, as the case may be, plus (B) the quotient of (1) the
     amount of the maximum Earn-Out Distribution allowed for such Earn-Out
     Period, if any (as specified in Section 2(c)), divided by (2) the
     difference between one and the Applicable Percentage as then in effect,
     expressed as a decimal, such excess amount shall be carried forward to the
     next succeeding Earn-Out Period (including the 2002 Earn-Out Period) and
     shall thereby lower the Earn-Out Threshold for such next Earn-Out

                                       3
<PAGE>

     Period on a dollar-for-dollar basis. In addition, for the Initial Period
     and for each of the 1999, 2000 and 2001 Earn-Out Periods, to the extent
     that the consolidated EBITDA of the Company and its Subsidiaries and IMCO's
     other Zinc-Related Operations is less than the Earn-Out Threshold with
     respect to the Initial Period or such Earn-Out Period, as the case may be,
     the resulting deficit shall be carried forward to the next succeeding Earn-
     Out Period (including the 2002 Earn-Out Period) and thereby increase the
     applicable Earn-Out Threshold with respect to such next Earn-Out Period on
     a dollar-for-dollar basis.

     (e) (i)   Subject to Section 2(e)(ii) below, (a) Earn-Out Distributions, if
     any, with respect to any Earn-Out Period shall be paid to the Employed
     Sellers as they may designate in a writing signed by each of them and
     received by the Company on or before that date which is thirty (30) days
     before the first day of the next succeeding Earn-Out Period, and (b) if
     there is no such designation, such amounts will be paid in the following
     proportions: 50% to M. Russ Robinson, and 50% to Howard Robinson.

         (ii)  Notwithstanding anything else in this Agreement to the contrary,
     as long as any Borrower's Liabilities remain outstanding under the Note,
     all Earn-Out Distributions, net of any tax or other deductions to be made
     under any provision of applicable law, required to be paid by IMCO to the
     Employed Sellers under this Agreement shall not be payable to the Employed
     Sellers, but instead, the Earn-Out Distributions shall be paid by IMCO to
     Midwest and applied against the Borrower's Liabilities due under the Note
     irrespective of whether the Borrower's Liabilities may then be due and
     payable. Once the Borrower's Liabilities due under the Note have been paid
     in full, then Earn-Out Distributions, if any, due and payable under this
     Agreement which have not been previously applied against the Borrower's
     Liabilities shall be paid by IMCO to the Employed Sellers in accordance
     with Section 2(e)(i) above.

         (iii) Except as expressly set forth herein, the Company shall not have
     any liability to any person for any damages, losses, or expenses that it
     may incur as a result of any action taken by M. Russ Robinson and Howard
     Robinson, or either of them, with respect to any such designation or
     failure to designate as contemplated above in this Section 2(e), and the
     Company shall be protected in relying in good faith upon any such writing
     from them in connection therewith. The Company shall not incur any
     liability with respect to any action taken or omitted in reliance upon any
     instrument executed by M. Russ Robinson and/or Howard Robinson, or its
     validity and effectiveness, or the truth and accuracy of any information
     contained therein which the Company shall, in good faith, believe to be
     genuine and to conform to the provisions of this Agreement. In the event of
     any disagreement between M. Russ Robinson or Howard Robinson or any of
     their respective heirs, administrators or legal representatives, or between
     them or any other person (except the Company), resulting in adverse claims
     and demands being made in connection with any Earn-Out Distribution, the
     Company shall be entitled to refuse to comply with any such claims or
     demands as long as such disagreement may continue, and in so refusing,
     shall make no delivery or other disposition of any property then held

                                       4
<PAGE>

     by it under this Agreement, and in so doing the Company shall be entitled
     to continue to refrain from acting until (i) the rights of the adverse
     claimants shall have been finally determined by an order of a court of
     competent jurisdiction, from which no appeal has or can be taken, or (ii)
     all differences shall have been adjusted by a binding agreement and the
     Company shall have been notified in writing of such agreement signed by the
     parties hereto. In the event of such disagreement, the Company may tender
     the particular Earn-Out Distribution into the custody of any court of
     competent jurisdiction, together with such legal proceedings as it deems
     appropriate.

         (iv)  During the term of this Agreement, in the event that the
     employment of either Employed Seller is terminated for any reason as
     specified in Sections 3(a)(i) through 3(a)(iv) of those certain Employment
                  ----------------         --------
     Agreements dated as of July 21, 1998 by and between the Company and each of
     the Employed Sellers (the "Employed Sellers' Employment Agreements"), then
     the Employed Seller who is so terminated shall only be entitled to receive
     hereunder an amount equal to the Earn-Out Distribution for such Earn-Out
     Period in which his employment so terminated, multiplied by (i) 50%, if his
     employment terminated during the first half (i.e. the first six months or
     the first three months, as the case may be) of such Earn-Out Period; or
     (ii) 100%, if his employment terminated during the second half of such
     Earn-Out Period. With respect to all Earn-Out Periods following the Earn-
     Out Period during which an Employed Seller's employment with the Company
     was terminated for any of the reasons set forth in Sections 3(a)(i) through
                                                        ----------------
     3(a)(iv) of the Employed Sellers' Employment Agreements, such terminated
     --------
     Employed Seller shall not be entitled to receive any further Earn-Out
     Distributions as provided herein. In the event that the employment of
     either Employed Seller is terminated by the Company for any reason other
     than for a reason specified in Sections 3(a)(i) through 3(a)(iii) of the
                                    ----------------         ---------
     Employment Agreements or the Employed Seller terminates his Employment with
     the Company for "Good Reason" (as that term is defined in Section 5 of the
     Employed Sellers' Employment Agreements), then the Earn-Out Distributions
     to be accrued for and payable to such terminated Employed Seller shall
     thereafter continue to be paid to such terminated Employed Seller as if he
     had remained employed with the Company for the remainder of the term of
     this Agreement as follows: (x) for the Earn-Out Period with respect to
     which his employment so terminates, the entire amount of the Earn-Out
     Distribution payable (based on the Applicable Percentage being 60%); and
     (y) for each subsequent Earn-Out Period for the remainder of the term of
     this Agreement, an amount equal to the Earn-Out Distribution accrued and
     otherwise payable with respect to each such Earn-Out Period (based on the
     Applicable Percentage being 40%). Notwithstanding anything to the contrary
     contained in this Agreement, in the event that either Employed Seller's
     term of employment is terminated for the reasons set out in Sections
                                                                 --------
     3(a)(ii), 3(a) (iii) or 3(a)(iv) of such Employed Seller's Employment
     --------------------------------
     Agreement, then the remaining Employed Seller shall be entitled to the
     entire Earn-Out Distribution, if any, that is not payable to the terminated
     Employed Seller.

     (f) Subject to Section 2(e)(ii) above, any Earn Out Distribution payable as
set forth herein will be paid by IMCO to the Employed Sellers on or before April
1 of the calendar year

                                       5
<PAGE>

following the Earn-Out Period to which such Earn-Out Distribution relates.
Notwithstanding anything else to the contrary contained in Sections 2(e)(i) and
2(e)(ii), it is hereby understood and agreed that IMCO shall have the right to
deduct, prior to payment, from any and all Earn-Out Distributions to be paid all
taxes which may be required to be deducted or withheld therefrom under any
provision of applicable law (including but not limited to social security
payments, federal and state income tax withholding and any other required
deductions). IMCO will deliver to the Sellers and Midwest no later than March 20
following each Earn-Out Period, a certificate certifying as to (i) the
consolidated EBITDA of the Company and its Subsidiaries and IMCO's other Zinc-
Related Operations for the Earn-Out Period then ended, (ii) the Earn-Out
Threshold, as adjusted, for the Earn-Out Period then ended and (iii) the amount
of such Earn-Out Distribution applicable to such Earn-Out Period then ended (the
"Certificate"). The consolidated EBITDA of the Company and its Subsidiaries and
IMCO's other Zinc-Related Operations shall be (i) determined consistent with the
accounting policies and procedures of IMCO in accordance with GAAP consistently
applied with U.S. dollars as the functional currency, (ii) derived from the
consolidated financial statements of the Company and its Subsidiaries pursuant
to Section 2(b) above, as included in IMCO's consolidated financial statements,
excluding allocated charges but including direct charges (i.e., actual costs for
services provided by or incurred by IMCO and/or its subsidiaries for the benefit
of the Company and/or its Subsidiaries), and (iii) consistent with Schedule A
                                                                   ----------
which is attached hereto and made a part hereof. Notwithstanding anything else
to the contrary in this Agreement, IMCO and the Employed Sellers expressly agree
that the consolidated EBITDA of the Company and its Subsidiaries and IMCO's
other Zinc-Related Operations for the 1999 Earn-Out Period shall not include any
gain from the sale of land and other real property.

     (g) As used in this Section 2, the term "purchase price" with respect to
the acquisition by IMCO or its Subsidiaries of any after-acquired Zinc-Related
Operation shall mean the value of all cash, securities, property or assumption
of debt by IMCO or any of its Subsidiaries, and any other forms of payment paid
or to be paid, directly or indirectly, by IMCO or any of its Subsidiaries
pursuant to such acquisition.  If all or part of the purchase price is
represented by securities, the value thereof shall be determined as follows:

         (i)   For securities which are publicly traded, the average closing
     sale price for such securities for the twenty trading days prior to the
     consummation of such acquisition;

         (ii)  For securities for which no market exists, as mutually agreed
     upon in good faith by IMCO and the Employed Sellers as determined prior to
     the closing of such acquisition.

     Any inability to agree upon the value of the securities described in the
foregoing will be resolved through submission of the matter to binding
arbitration by IMCO and the Employed Sellers (pursuant to Section 4 hereof).

                                       6
<PAGE>

     (h) Notwithstanding any provision contained in this Section 2, neither IMCO
nor any of its Subsidiaries shall be under any obligation whatsoever to acquire
or purchase any additional Zinc-Related Operations.

     3.  Security Agreement.

     (a) To secure the prompt payment to Midwest of the Borrower's Liabilities
and the prompt, full and faithful performance of all the provisions to be kept,
observed or performed by the Employed Sellers and Weed Street under the Note and
Guaranty, the Employed Sellers hereby grant to Midwest a security interest in
and to (i) the Earn-Out Property, (ii) all accessions to the foregoing and all
substitutions, renewals, improvements and replacements of and additions to the
foregoing, and (iii) all products and proceeds of the foregoing, including
without limitation, proceeds of insurance policies insuring the foregoing
(individually and collectively, the "Collateral").

     (b) The Employed Sellers shall execute and deliver to Midwest, at the
request of Midwest, all agreements, instruments and documents that Midwest may
reasonably request (including, without limitation, a UCC-1), in form and
substance acceptable to Midwest, to perfect and maintain perfected Midwest's
security interest in the Collateral and to consummate the transactions
contemplated in or by this Agreement, the Note and Guaranty.

     (c) The Employed Sellers warrant, represent to and covenant with Midwest
that (i) Midwest's security interest in the Collateral is now and at all times
hereafter shall be perfected and have a first priority; (ii) the address
specified in Section 11 below is the Employed Sellers' permanent residence; and
(iii) the Employed Sellers will give immediate notice to Midwest of any change
in the Employed Sellers' permanent residences.

     (d) The occurrence of any one of the following events shall constitute a
default ("Event of Default") under this Agreement: (i) if the Employed Sellers
fail or neglect to perform, keep or observe any term, provision, condition,
covenant, warranty or representation contained in this Agreement, which is
required to be performed, kept or observed by the Employed Sellers; (ii) if Weed
Street or the Employed Sellers fail to pay any of the Borrower's Liabilities
under the Note or Guaranty, when due and payable or declared due and payable;
(iii) if the Collateral is attached, seized, subjected to a writ of distress
warrant or is levied upon, or becomes subject to any lien, or comes within the
possession of any receiver, trustee, custodian or assignee for the benefit of
creditors; (iv) if Weed Street or the Employed Sellers become insolvent or
generally fail to pay, or admit in writing its/their inability to pay, debts as
they become due; (v) if a petition under Title 11, United States Code or any
similar law or regulation shall be filed by or against the Employed Sellers or
Weed Street; (vi) if Weed Street or the Employed Sellers shall make an
assignment for the benefit of its/their creditors or if any case or proceeding
is filed by or against Weed Street or the Employed Sellers for its/their
dissolution or liquidation; or (vii) if a notice of lien, levy or assessment is
filed of record or given to the Employed Sellers with respect to the Collateral
by any federal, state of local department or agency.

                                       7
<PAGE>

     (e) All of Midwest's rights and remedies under this Agreement are
cumulative and non-exclusive. Upon an Event of Default, Midwest, in its sole and
absolute discretion, may exercise any one or more of the rights and remedies
accruing to a secured party under the Uniform Commercial Code of the relevant
state or any other applicable law with respect to the Collateral.

     (f) This Agreement, or a carbon, photographic, photostatic copy, or other
reproduction of this Agreement or of any Uniform Commercial Code financing
statement covering the Collateral or any portion thereof, shall be sufficient as
a Uniform Commercial Code financing statement and may be filed as such.

     4.  Dispute Resolution.

     (a) In the event of any dispute or claim relating to or arising out of the
subject matter of this Agreement, IMCO and the Employed Sellers hereby agree
that all such disputes or claims shall be submitted to binding arbitration under
the Federal Arbitration Act in Houston, Texas. Any arbitration shall be
conducted under the auspices of, and the rules of, the American Arbitration
Association, or such other procedures as the Employed Sellers and IMCO may agree
to at the time, before a tribunal of three arbitrators, one of which shall be
selected by the Employed Sellers and IMCO and the third shall be selected by the
two arbitrators previously elected. Any award issued as a result of such
arbitration shall be final and binding on the Employed Sellers and IMCO, and
shall be enforceable by any court having jurisdiction over the party against
whom enforcement is sought. The Employed Sellers and IMCO will each be deemed to
have voluntarily and knowingly entered into an agreement to arbitration under
this Section 4 by entering into this Agreement.

     (b) Notwithstanding anything else to the contrary contained in Section 4(a)
above, Section 4(a) of this Agreement shall not apply to any disputes that arise
as a result of, relating to or in connection with Section 3 above.

     (c) IMCO and the Employed Sellers acknowledge and confirm that they have
not been able to resolve the "Basket Issue", an issue that they agree affects
only the calculation of the consolidated EBITDA for the Initial Period and the
1999 Earn-Out Period. Specifically, the Basket Issue is whether or not the
consolidated EBITDA for the Initial Period and the 1999 Earn-Out Period shall be
reduced by the total amount of the "Damages" (as that term is defined in the
Purchase Agreement) incurred in 1998 and 1999 for matters described in Section
6.3 or in clauses 6.2(a), 6.2(b) and 6.2(c) of the Purchase Agreement. IMCO and
the Employed Sellers expressly agree that they will not apply the provisions of
Section 4(a) of this Agreement to resolve the Basket Issue. Instead, they will
engage a mutually agreeable third party arbitrator to resolve the Basket Issue
with the cost borne by IMCO. IMCO and the Employed Sellers agree to use their
best efforts to select the third party arbitrator and resolve the "Basket Issue"
by June 30, 2000; provided, however, that notwithstanding anything contained to
                  ------------------
the contrary in this Agreement, if the parties do not resolve the Basket Issue
by June 30, 2000 then the provisions of Section 4(a) above will govern the
resolution of the Basket Issue. If the Employed Sellers win

                                       8
<PAGE>

the arbitration, within fifteen (15) days after the arbitrator's final decision
each of the Employed Sellers will be paid $120,000 less all taxes which may be
required to be deducted or withheld therefrom under any provision of applicable
law including but not limited to social security payments, federal and state
income tax withholding and any other required deduction. The Employed Sellers
each expressly agree that the amount that is in dispute due to the Basket Issue
($120,000 for each of the Employed Sellers) is the maximum amount of pre-tax
Earn-Out Distribution that the Employed Sellers can earn with respect to the
Initial Earn-Out Period and the 1999 Earn-Out Period. If IMCO wins the
arbitration, IMCO will not owe the Employed Sellers any Earn-Out Distributions
for the Initial Period or the 1999 Earn-Out Period. Regardless of which party
wins the arbitration, IMCO and the Employed Sellers agree that for purposes of
the this Agreement at least $400,000 of Damages will be considered to have been
incurred during 1998 and 1999 for matters described in Sections 6.3, 6.2(a),
6.2(b) and 6.2(c) of the 1998 Purchase Agreement.

     5.  Attorneys' Fees. The prevailing party shall be entitled to recover from
the losing party its attorneys' fees and costs incurred in any action brought to
enforce any right arising out of this Agreement.

     6.  Interpretation and Severability. This Agreement shall be interpreted in
accordance with and governed by the laws of the State of Texas. The invalidity
or unenforceability of any provisions(s) of this Agreement shall not affect the
validity or enforceability of any other provision(s) of this Agreement, which
shall remain in full force and effect.

     7.  Successors and Assigns.

     (a) This Agreement shall be binding upon and shall inure to the benefit of
the IMCO and Midwest, their successors and assigns, and IMCO and Midwest shall
require any successor or assign to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that IMCO and Midwest would
be required to perform it if no such succession or assignment had taken place.
The term "IMCO" or "Midwest" as used herein shall include such successors and
assigns. The term "successors and assigns" as used herein shall mean a
corporation or other entity acquiring all or substantially all the assets and
business of IMCO or Midwest (including this Agreement) whether by operation of
law or otherwise.

     (b) Except with respect to the designations as provided in Section 2(e)
hereof, neither this Agreement nor any right or interest hereunder shall be
assignable or transferable by either Employed Seller, his beneficiaries or legal
representatives, except with the prior written consent of IMCO and Midwest. This
Agreement shall inure to the benefit of and be enforceable by each Employed
Seller's legal personal representative.

     8.  Entire Agreement. This Agreement, together with the applicable
provisions of, and exhibits to, the Purchase Agreement, the Put Agreement, the
Note and the Guaranty, constitutes the entire agreement between the Employed
Sellers, Midwest and IMCO regarding

                                       9
<PAGE>

the subject matter herein and is the final and complete expression of their
intent. This Agreement replaces and supercedes the 1998 Earn-Out Agreement in
its entirety. No prior or contemporaneous negotiations, promises, agreements,
covenants or representations of any kind or nature, whether made orally or in
writing, have been made by the parties which are not expressly contained herein.

     9.  Modification. This Agreement may only be modified or amended by a
supplemental written agreement executed by IMCO, Midwest and each of the
Employed Sellers.

     10.  Miscellaneous. This Agreement (i) shall be governed by, and construed
and enforced in accordance with, the laws of the State of Texas, and (ii) may be
executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Section
headings hereof are included solely for convenience of reference and are not to
be considered part of this Agreement.

     11.  Notices. All notices or other communications which are required or may
be given under this Agreement shall be in writing and shall be deemed to have
been duly given when delivered in person, transmitted by telecopier or mailed by
registered or certified first class mail, postage prepaid, return receipt
requested to the parties hereto at the address set forth below (as the same may
be changed from time to time by notice similarly given) or the last known
business or residence address of such other person as may be designated by
either party hereto in writing.

         IMCO and/or Midwest:

               Jeffrey S. Mecom
               IMCO Recycling Inc.
               5215 North O'Connor Blvd.
               Irving, Texas 75039
               Facsimile No.: (972) 401-7342

         Employed Sellers:

               Mr. M. Russ Robinson and Mr. Howard Robinson
               U.S. Zinc Corporation
               6020 Navigation St.
               Houston, TX 77001
               Facsimile No.: (713) 923-1783

     12. Captions. The title of this Agreement and the headings of the various
paragraphs of this Agreement have been inserted only for the purposes of
convenience and are not part of this Agreement and shall not be deemed in any
manner to modify, explain, expand or restrict any of the provisions of this
Agreement.

                                       10
<PAGE>

     13. Waiver. Failure of any of the parties hereto to insist upon strict
compliance with any of the terms, covenants or conditions hereof shall not be
deemed a waiver of such term, covenant or condition, nor shall any waiver or
relinquishment of any right or power hereunder at any one time or more times be
deemed a waiver or relinquishment of such right or power at any other time or
times. No waiver shall be valid unless in writing signed by the party to be
charged and only to the extent therein set forth.

     14. Acknowledgement of the Parties and Construction of Terms. The parties
hereto acknowledge and agree that they have read and fully understand this
Agreement, that they have had a full and fair opportunity to evaluate this
Agreement and the transactions and other matters contemplated by this Agreement,
that they have had the full and fair opportunity to consult with and have
consulted with their own attorneys, accountants and other business advisors and
counselors of their choice in connection with the negotiation, evaluation,
execution and delivery of this Agreement and the other documents attached
hereto, and the consummation of the transactions contemplated by this Agreement,
and that, in light of the foregoing and under circumstances taken as a whole,
this Agreement and the transactions contemplated by this Agreement are fair to
them. This Agreement has been drafted jointly by the parties in full
consultation with their respective attorneys, and no ambiguity in this Agreement
shall be interpreted or construed against any of the parties.

                           [signature page follows]

                                       11
<PAGE>

     IN WITNESS WHEREOF, each party hereto has executed or caused this Agreement
to be executed on its behalf, all on the day and year first above written.

                                             IMCO

                                             IMCO RECYCLING INC.

                                             By:_______________________
                                             Name:_____________________
                                             Title:____________________

                                             MIDWEST

                                             MIDWEST ZINC CORPORATION

                                             By:_______________________
                                             Name:_____________________
                                             Title:____________________

                                             EMPLOYED SELLERS

                                             __________________________
                                             M. RUSS ROBINSON

                                             __________________________
                                             HOWARD ROBINSON

                                       12

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