Document:

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                                                                    EXHIBIT 10.1

                                --CONFIDENTIAL--

                  AARO BROADBAND WIRELESS COMMUNICATIONS, INC.
                                CHANGE-IN-CONTROL
                             KEY EMPLOYEE AGREEMENT

THIS AGREEMENT (the "Agreement") is made and entered into effective the date and
year last executed by a party hereto and is by and between Aaro Broadband
Wireless Communications, Inc., an Oklahoma Corporation (hereinafter referred to
as the "Company"), and the individual executing below as the Key Employee
(hereinafter referred to as the "Key Employee"), and is made in reference to the
following recitals of fact:

         WHEREAS, the Company considers the maintenance of sound, management
practices and stable top management and key personnel to be essential in
protecting and enhancing the best interests of the Company and further
recognizes that the possibility of a change in control of the Company raises
uncertainty and questions among Key Employees and may result in the departure or
distraction of such Key Employees to the detriment of the Company and its
stockholders; and

         WHEREAS, accordingly, the Board of Directors of the Company has
determined that appropriate steps should be taken to reinforce and encourage the
continued attention and dedication of Key Employees to their assigned duties
without distraction in the face of the potentially disturbing circumstances
arising from the possibility of a change in control of the Company; and

         WHEREAS, the Company and Key Employee desire to enter into this
agreement in order to (1) induce our Key Employees to remain in the employ of
the Company, (2) secure for the Company the benefits derived from the Key
Employee's employment, and (3) to maximize the Key Employees production efforts
during the period prior and subsequent to any "Change-in-Control" (as such term
is hereinafter defined) of the Company and to provide for certain contingencies
in the event of any Change-in-Control of the Company;

NOW, THEREFORE, in consideration of the foregoing:

         1. GENERAL. This Agreement sets forth the terms and conditions for
         qualification for severance "Benefits" (as hereinafter defined) which
         the Company will provide to certain Key Employees in the event their
         employment with the Company and/or its subsidiaries, if any, is
         terminated under the circumstances, described herein, subsequent to a
         Change-in-Control (as that term is defined below). The Key Employees
         entitled to benefits under this Agreement are those Key Employees of
         the Company or any of its subsidiaries so designated, from time to
         time, by the Board of Directors of the Company as being covered by such
         plan; provided, however, that any Key Employee so designated, from time
         to time, by the Board of Directors of the Company as being covered by
         such plan and so designated on the date of the Change-of-Control, shall
         continue as such a Key Employee after the Change-in-Control. The
         Company shall enter into this Agreement with each Key Employee so
         designated.

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                                --CONFIDENTIAL--

         2. COMPANY'S RIGHT TO TERMINATE. No provision contained herein shall
         affect the Company's ability to terminate the Key Employee's employment
         at any time, with or without cause. Nothing in this Agreement shall, in
         any way, require the Company to provide any Benefits prior to a
         Change-in-Control; nor shall this Agreement ever be construed in any
         way as establishing any policies or requirements for severance benefits
         for any Key Employee who terminates employment with the Company prior
         to a Change-in-Control. In addition, the Company shall have the right
         to terminate or modify this Agreement at any time prior to a
         Change-in-Control.

         3. CHANGE-IN-CONTROL. Benefits provided herein shall be payable in the
         event there shall have occurred a "Change-in-Control," as defined
         below, and the Key Employee's employment by the Company shall
         thereafter have been terminated as defined herein.

         For the purpose of this agreement, a "Change-in-Control" of the Company
         shall be deemed to have occurred if:

               a.   individuals who, on the date hereof, are members of the
                    Board of Directors of the Company (the "Board") cease for
                    any reason to constitute at least seventy-five percent (75%)
                    of the members of such Board, unless the election, or the
                    nomination for election by the Company stockholders, of each
                    new director was approved by a vote of at least 75% of the
                    members of such Board then still in office who were members
                    of such Board of the date hereof; or

               b.   after the date hereof, any "person" (as such term is used in
                    Sections 13(d) and 14(d) (2) of the Securities Exchange Act
                    of 1934 ("Exchange Act") becomes the "beneficial owner' (as
                    defined in Rule 13d-3 under the Exchange Act), directly or
                    indirectly, of securities of the Company representing
                    twenty-five (25%) or more of the combined voting power of
                    the Company's then outstanding securities (such "Person"
                    hereafter referred to as a "Major Stockholder"); or

               c.   the stockholders of the Company shall approve a merger,
                    consolidation or dissolution or the sale, lease or exchange
                    of all or substantially all of the Company's assets.

         4. TERMINATION FOLLOWING CHANGE-IN-CONTROL. In the event a
         Change-in-Control shall have occurred, the Key Employee shall be
         entitled to the benefits provided in Section 5 hereof upon any
         termination of his employment within the twenty-four (24) month period
         following such a Change-in-Control; EXCEPT, HOWEVER, a termination of
         employment:

               a.   because of death or "Retirement" (as defined below); or

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                                --CONFIDENTIAL--

               b.   by the Company for "Cause" or "Disability" (both as defined
                    hereinafter); or

               c.   by the Key Employee other than for "Good Reason" (as
                    hereinafter defined below):

                        (1) DISABILITY; RETIREMENT.

                               (a) Termination by the Company of a Key
                                   Employee's employment based of "Disability"
                                   shall mean termination because of his absence
                                   from duties with the Company on a full-time
                                   basis for one hundred eighty (180)
                                   consecutive business days as a result of
                                   incapacity due to physical or mental illness,
                                   unless he shall have returned to the
                                   full-time performance of his duties within
                                   thirty (30) days after "Notice of
                                   Termination" (as described in (4) below) is
                                   given in connection with such absence.

                               (b) Termination of employment based on
                                   "Retirement" shall mean the Key Employees
                                   voluntary resignation in accordance with the
                                   Company's retirement procedures generally
                                   applicable to all employees, but shall not
                                   include early retirement due to a special
                                   incentive package.

                        (2) CAUSE.

                            Termination by the Company of a Key Employee's
                            employment for "Cause" shall mean termination within
                            the twenty-four (24) month period following a
                            Change-in-Control by reason of the willful and
                            continued failure by the Key Employee to
                            substantially perform his duties with the Company
                            (other than any such failure resulting from his
                            incapacity due to physical or mental illness) for a
                            period of thirty (30) or more days after a written
                            demand for substantial performance is delivered to
                            him by the Chief Executive Officer of the Company or
                            the Director of Human Resources, which demands
                            specifically identifies the manner in which such
                            officer or officers believe that the Key Employee
                            has not substantially performed his duties.

                            Notwithstanding the foregoing, the Key Employee
                            shall not be deemed to have been terminated for
                            cause unless and until there shall have been
                            delivered to the Key Employee, a copy of a Notice of
                            Termination from the Chief Executive Officer or
                            Director of Human Resources, after reasonable notice
                            to the

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                                --CONFIDENTIAL--

                            Key Employee and an opportunity for him, together
                            with his counsel, to be heard before the Board of
                            Directors, finding that, in the good faith opinion
                            of the Board, he was guilty of conduct set forth
                            above in this subsection and specifying the
                            particulars thereof in detail.

                        (3)   GOOD REASON.

                        Termination by the Key Employee of his employment for
                        "Good Reason" shall mean:

                               a.  within the twenty-four (24) month period
                                   following the Change-in-Control, if there has
                                   occurred a reduction by the Company in his
                                   base salary in effect immediately prior to
                                   the Change-in-Control or as increased, from
                                   time to time thereafter; or

                               b.  within the twenty-four (24) month period
                                   following a Change-in-Control, and without
                                   the Key Employee's express written consent,
                                   the relocation of the Key Employee's assigned
                                   principal site of employment to a location
                                   outside the metropolitan area of the city of
                                   his principal site of employment on the date
                                   of the Change-in-Control which reasonably
                                   requires the Key Employee to move residences;
                                   or

                               c.  within the twenty-four (24) month period
                                   following the Change-in-Control, if there has
                                   occurred a failure by the Company to maintain
                                   plans providing benefits to the Key Employee
                                   at least as beneficial as those provided by
                                   any benefit or compensation plan, stock grant
                                   or option plan, life insurance plan, health
                                   and accident plan or disability plan in which
                                   the Key Employee is participating at the time
                                   of the Change-in-Control or if the Company
                                   has taken any action which would adversely
                                   affect the Key Employee's participation in or
                                   materially reduce the Key Employee's benefits
                                   under any of such plans or deprive him of any
                                   material fringe benefit enjoyed by him at the
                                   time of the Change-in-Control, or if the
                                   Company has failed to provide him with the
                                   number of accrued paid vacation days to which
                                   he would be entitled in accordance with the
                                   Company's normal vacation policy in effect at
                                   the time of the Change-in-Control; or

                               d.  within the twenty-four (24) month period
                                   following a Change-in-Control, if the Company
                                   has reduced in any

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                                --CONFIDENTIAL--

                                   manner, the Key Employee's title, job
                                   authorities or responsibilities existing
                                   immediately prior to the Change-in-Control;
                                   or

                               e.  within the twenty-four (24) month period
                                   following a Change-in-Control, if the Company
                                   has failed to obtain the assumption of the
                                   obligations contained in this Plan by any
                                   successor as required under Section 7(a); or

                               f.  within the twenty-four (24) month period
                                   following a Change-in-Control, if there
                                   occurs any purported termination of the Key
                                   Employee's employment by the Company which is
                                   not affected pursuant to a Notice of
                                   Termination satisfying the requirements of
                                   Section 4(c)(4) below; and, for purposes of
                                   this Agreement, no such purported termination
                                   shall be effective.

                        A termination of employment by the Key Employee within
                        the twenty-four (24) month period following a
                        Change-in-Control shall be for Good Reason if one of the
                        occurrences specified in this Section 4(c)(3) shall have
                        occurred, notwithstanding that the Key Employee may have
                        other justifiable reasons for terminating employment,
                        including the employment by another employer which the
                        Key Employee desires to accept.

                        (4) THE NOTICE OF TERMINATION.

                            Any purported termination of a Key Employee's
                            employment by the Company pursuant to this Agreement
                            shall be communicated by written notice of
                            termination to the Key Employee. For purposes of
                            this plan a "Notice of Termination" shall mean a
                            written notice which shall indicate the specific
                            termination provision in this Agreement relied upon
                            and shall set forth, in reasonable detail, the facts
                            and circumstances claimed to provide a basis for
                            termination of the Key Employee's employment under
                            the provision so indicated.

                        (5) DATE OF TERMINATION.

                            "Date of Termination" shall mean:

                            (a)   if the Key Employee's employment is terminated
                                  for Disability, thirty (30) days after a
                                  Notice of Termination is given (provided that
                                  the Key Employee shall not have

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                                --CONFIDENTIAL--

                                  returned to the performance of his duties on
                                  full-time basis during such thirty (30) day
                                  period);

                            (b)   if the Key Employee's employment is terminated
                                  pursuant to Section 4(c)(2) above for cause,
                                  the date on which the Notice of Termination is
                                  given;

                            (c)   if the Key Employee's employment is terminated
                                  by the Company for any other reason, the date
                                  on which a Notice of Termination is given;
                                  provided that if within thirty (30) days after
                                  any Notice of Termination is given, the Key
                                  Employee notifies the Company that a dispute
                                  exists concerning the termination the date of
                                  termination shall be the date on which the
                                  dispute is finally settled, either by mutual
                                  written agreement of the parties or by a final
                                  judgment, order or decree of a court of
                                  competent jurisdiction; and

                            (d)   if the Key Employee terminates his employment
                                  for Good Reason, the date on which the Company
                                  receives notice from the Key Employee of such
                                  termination.

         5. BENEFITS UPON TERMINATION. If, within the twenty-four (24) month
         period following a Change-in-Control, the Key Employee's employment by
         the Company shall be terminated by the Company other than for Cause or
         Disability or shall be terminated by the Key Employee for Good Reason
         prior to Retirement, the Key Employee shall be entitled to his full
         base salary through the Date of Termination to the extent not
         theretofore paid, plus the Key Employee shall be entitled to the
         "Benefits" provided below:

               a. SPECIAL SEVERANCE PAY.

                  Employee shall be entitled to the sum of:

                        (1) an amount (discounted to present value on the basis
                            of a rate of 7.5% per annum) equal to the product of
                            his/her monthly base salary in effect at
                            termination, multiplied by thirty-six (36) months,
                            reduced by the number of whole months, if any, in
                            which the Key Employee was employed by the Company
                            in excess of twelve (12) months following a
                            Change-in-Control; plus

                        (2) an amount (discounted to present value on the basis
                            of a rate of 7.5% per annum) equal to the sum of the
                            total award of any annual incentive compensation or
                            bonus payment made to the Key Employee in respect of
                            his performance for the calendar year next preceding
                            the Change-in-Control plus any other performance
                            bonuses due to the Key Employee.

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               b. SEVERANCE COMPENSATION UPON TERMINATION OF EMPLOYMENT. If the
                  Key Employee is entitled to compensation pursuant to Section 5
                  (a) above, the Company or it's successor shall pay such amount
                  to the Key Employee in a lump sum, in cash, on the fifth (5th)
                  day following the Date of Termination, provided, however, that
                  if the lump sum severance payment under this Section (5),
                  either alone or together with other payments which the Key
                  Employee has the right to receive from the Company or a
                  successor Company, would constitute a "parachute payment" (as
                  defined in Section 280G of the Internal Revenue Code of 1986,
                  as amended), such lump sum severance payment shall be reduced
                  to the largest amount that will not constitute a "parachute
                  payment."

               c. INCENTIVE COMPENSATION PLANS. Notwithstanding anything to
                  the contrary contained in any stock agreement between the
                  Company and the Participant, the Key Employee shall be fully
                  vested as the Date of Termination in any and all stock grants
                  or stock options previously granted to Key Employee by the
                  Company.

               d. BENEFIT PLANS. For a period of twenty-four (24) months
                  following the Key Employee's Date of Termination, reduced by
                  the number of whole months, if any, in which the Key Employee
                  was employed by the Company in excess of six (6) months
                  following a Change-in-Control, Key Employee, subject to the
                  "Cash-out Option" discussed below, shall be entitled to
                  continue to participate in the following benefit plans of the
                  Company. In addition, subject to applicable federal and state
                  statutes and regulations or in the case of their application,
                  as of his Date of Termination, the Key Employee shall become
                  fully vested in all respects in the following benefit plans:

                        (1) any life insurance, health insurance or dental
                            insurance plan.

                        (2) Savings plan; (e.g. Simplified IRA or 401K Plan)

                        (3) Any other benefit plans made generally available to
                            other Key Employee's comparable level or to
                            employees of the Company in general.

               e. CLUB MEMBERSHIPS. The Company shall assign to the Key
                  Employee its interest in any club membership standing in the
                  name of the Key Employee. Any membership in any club in the
                  Company's name for the benefit of the Key Employee shall at
                  the option of the Key Employee, be transferred to the Key
                  Employee by the Company upon the Key Employee's payment of the
                  club's transfer fee.

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                                --CONFIDENTIAL--

               f. SPECIAL SUPPLEMENTAL BENEFIT PLAN. Notwithstanding anything
                  to the contrary contained in this Agreement or in any of the
                  Company's employee benefit plans, or in any federal, state or
                  local statute, rule or regulation governing such employee
                  benefit plans, if the Key Employee is not fully vested in any
                  of the benefit plans described herein or any other benefit
                  plans of the Company at the date of his termination, the
                  Company shall pay to the Key Employee amounts (hereinafter
                  called "Benefit Payment Equivalents") equal to the amounts
                  which would have been received by the Key Employee under all
                  benefit plans if the Key Employee had been fully vested
                  therein with such Benefit payment Equivalents to be payable at
                  the time benefits are otherwise payable under the Company's
                  present benefit plans (subject to the Cash-out Option
                  discussed below); provided, however, that any Benefit Payment
                  Equivalents shall be reduced to the extent, if any that the
                  Key Employee receives the payment of benefits under such
                  Company benefit plans.

               g. CASH-OUT OPTION. In addition to the lump sum severance
                  payment discussed in Sections 5(a) and (b) above, the Key
                  Employee shall have the option to elect to receive a lump sum
                  cash equivalent (discounting to present value, on the basis of
                  a rate of 7.5% per annum, any sums not previously discounted
                  to present value hereunder) of all of the other benefits
                  listed in this Section 5. The Key Employee shall give written
                  notice to the Company of his election under this option, and
                  payment hereunder shall be made within thirty (30) days of
                  such election.

               h. LEGAL EXPENSE. If any dispute should arise under this
                  agreement involving an effort by the Key Employee to protect,
                  enforce or secure rights or benefits claimed by the Key
                  Employee hereunder, the Company shall pay (promptly upon
                  demand by the Key Employee, accompanied by reasonable evidence
                  of incurrence) all reasonable expenses (including attorney's
                  fees) incurred by the Key Employee in connection with such
                  dispute.

               i. INTEREST. The Key Employee shall be entitled to receive
                  interest on any amount payable under this plan from the date
                  such payment is due hereunder to the date paid at the rate of
                  the lesser of twenty percent (20%) per annum or the highest
                  rate legally permissible.

         6. NO MITIGATION. The Key Employee shall not be required to mitigate
         the amount of any payment provided for in this Agreement by seeking
         other employment or otherwise and except as expressly set forth herein
         no such other employment, if obtained, or compensation, or benefits
         payable in connection therewith shall reduce any amounts or benefits to
         which the Key Employee is entitled hereunder.

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                                --CONFIDENTIAL--

         7. SUCCESSORS; BINDING AGREEMENT. The Company may amend or terminate
         this Agreement by action of its Board at any time prior to a
         Change-in-Control. The Company expressly waives any right to amend or
         terminate this Agreement following a Change-in-Control, and the Company
         acknowledges that the Key Employee shall have a binding and irrevocable
         right to the benefits set forth hereunder in the event of a
         Change-in-Control. Any purported termination of such plans following a
         Change-in-Control shall be ineffective, and the Key Employee shall lose
         no right hereunder for failing to contest such a purported plan
         termination.

               a. The Company shall require any successor (whether direct or
                  indirect, by purchase, merger, consolidation or otherwise) to
                  all or substantially all of the business and/or assets of the
                  Company to expressly assume and agree to honor this Agreement
                  in the same manner and to the same extent that the Company
                  would be required to so honor if no such succession had taken
                  place. Failure of the Company to obtain such agreement prior
                  to the effectiveness of any such succession shall be a
                  violation of this Agreement and shall entitle the Key Employee
                  to benefits from the Company or any such successor in the same
                  amount and on the same terms as a termination of employment
                  for Good Reason, except that for the purposes of implementing
                  for foregoing, the date on which any such succession becomes
                  effective shall be deemed the Date of Termination. the Company
                  shall promptly notify the Key Employee of any succession by
                  purchase, merger, consolidation or otherwise to all or
                  substantially all the business and/or assets of the Company.

               b. This Agreement shall inure to the benefit of and be
                  enforceable by the Key Employee and his personal or legal
                  representatives, executors, administrators, successors, heirs,
                  distributions, devisees and legatees. If the Key Employee
                  should die while any amount would still be payable to him
                  hereunder if he had continued to live, all such amounts,
                  unless otherwise provided herein, shall be paid in accordance
                  with the terms of this Agreement to his devisees, legatees or,
                  if there be no such designee, to his estate.

               c. The Company expressly acknowledges and agrees that each Key
                  Employee shall have a contractual right to the benefits
                  provided hereunder, and the Company expressly waives any
                  ability, if possible, to deny liability for any breach of its
                  contractual commitment hereunder upon the grounds of lack of
                  consideration, accord and satisfaction or any other defense.
                  In any dispute arising after a Change-in-Control as to whether
                  the Key Employee is entitled to such benefits under this
                  Agreement, there shall be a presumption that the Key Employee
                  is entitled to such Benefits and the burden of proving
                  otherwise shall be on the Company.

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                                --CONFIDENTIAL--

               d. All benefits to be paid hereunder shall be in addition to any
                  disability, workers' compensation, or other the Company
                  benefit plan distribution, unpaid vacation or other unpaid
                  benefits that the Employee has accrued at his Date of
                  Termination.

         8. BINDING EFFECT. This Agreement shall be binding upon the successors
         and assigns of the Company.

         9. RECEIPT OF AGREEMENT. Each of the parties hereto acknowledges
         reading this Agreement in its entirety and does hereby acknowledge
         receipt of a fully-executed copy hereof. A fully executed copy shall be
         a duplicate original for all purposes.

         10. GOVERNING LAW. This Agreement is to be governed by and construed
         under the law of the State of Oklahoma.

         11. CAPTIONS AND PARAGRAPH HEADINGS. Captions and paragraph headings
         used herein are for convenience only and are not a part of this
         Agreement and shall not be used in construing it.

         12. INVALID PROVISIONS. Should any part of this Agreement, for any
         reason, be declared invalid, the validity and binding effect of any
         remaining portion shall not be effected, and the remaining portion of
         this Agreement shall remain in force and effect as if this Agreement
         had been executed with the invalid provisions eliminated.

         13. ENTIRE AGREEMENT. This Agreement contains the entire agreement of
         the parties hereto, and it may not be modified or amended by oral
         agreement but only by an agreement in writing signed by the Company and
         the Key Employee.

         14. NOT ERISA PLAN. This Agreement shall never be construed or
         operated, in any way, as a "Pension Plan" within the meaning of the
         Federal Employee Retirement Income Security Act of 1974 as amended.

         15. NOT EMPLOYMENT CONTRACT. Notwithstanding any provision to the
         contrary contained herein, this Agreement does not create an employment
         contract or give the Key Employee a right to continued employment or
         compensation in lieu thereof except in the case of a Change-in-Control
         as defined herein.

         16. CORPORATE APPROVAL. This Agreement has been approved by the Board
         of Directors of the Company and has been duly executed and delivered to
         the Key Employee and on behalf of the Company by its duly authorized
         representative.

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                                --CONFIDENTIAL--

         17. SUPERSESSION. Where inconsistent with such agreements or plans,
         this Agreement shall supersede any and all other written oral
         agreements or plans between the Company and the Key Employee concerning
         the subject matter or benefits described herein.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date hereinabove first set forth.

                                     AARO BROADBAND WIRELESSCOMMUNICATIONS, INC.
                                     A NEVADA CORPORATION

                                     BY:
                                          ------------------------------------
                                     NAME: NORMAN S. LEIGHTY
                                     TITLE: CHAIRMAN OF THE BOARD
                                     DATE:
                                           ------------

                                     "KEY EMPLOYEE"

                                     -----------------------------------------
                                     NAME:
                                     DATE:
                                           ------------

                                       11<PAGE>

                                                                  EXHIBIT 10.20

                              EMPLOYMENT AGREEMENT

     AGREEMENT, dated as of the 1st day of January, 2001 (this "Agreement"), by
and between W.R. Grace & Co.-Conn., a Connecticut corporation (the "Company"),
and Paul J. Norris (the "Executive").

     WHEREAS, Executive has served as the President and Chief Executive Officer
of the Company since November 1, 1998 and as Chairman since January 1999.

     WHEREAS, the Board of Directors of the Company (the "Board") has
determined that, in light of increased risks and financial uncertainties facing
the Company and the industry as a whole, it is in the best interests of the
Company and its shareholders to continue to employ Executive, in the capacity
and on the terms and conditions hereinafter set forth.

     WHEREAS, Executive is willing to accept continued employment with the
Company in light of such increased risks and financial uncertainties, on the
terms and conditions hereinafter set forth.

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     This Agreement specifies the terms and conditions of Executive's continued
employment with the Company as Chairman, President and Chief Executive Officer,
which have been approved by the Board and/or the Compensation Committee of the
Board (the "Compensation Committee"), as applicable.

1. POSITION AND DUTIES

     At all times throughout the Employment Term (as defined below), Executive
shall serve as the Company's Chairman, President and Chief Executive Officer.
Executive's principal obligations, duties and responsibilities shall be those
that are generally inherent in those offices and titles. In this regard, all
employees of the Company (and its subsidiaries) shall continue to report
directly or indirectly to Executive. Executive's office shall continue to be
located at the Company's headquarters in Columbia, Maryland.

2. TERM OF AGREEMENT

     a) The initial term of Executive's employment under this Agreement shall
be from the date hereof through December 31, 2002, unless Executive's
employment is sooner terminated for any reason (the "Initial Term").

     b) Unless Executive or the Company provides written notice to the contrary
at least 180 days prior to the expiration of the Initial Term, or any renewal
term, Executive's employment shall be extended for an additional one-year
renewal term following the expiration of the Initial Term or such renewal term.
The Initial Term, together with any and all renewal terms, are collectively
referred to herein as the "Employment Term." The Employment Term (including any
renewal term) shall terminate upon Executive's termination of employment for
any reason. During any renewal term, Executive's annual base salary and target
percentages under the

<PAGE>

Company's annual incentive compensation program (the "Annual Incentive
Compensation Program") and the Company's long-term incentive compensation
program shall be no less favorable to Executive, in the aggregate, than those
applicable to Executive as of the date hereof, and Executive shall continue to
participate in all benefit plans and programs for which he is eligible
(according to the terms of such plans and programs) on terms no less favorable
than those applicable to the most senior executives of the Company from time to
time. Not later than 120 days prior to the commencement of any renewal term, the
Company shall communicate to Executive any change in the annual base salary and
the target percentages under the Annual Incentive Compensation Program and the
Company's long-term incentive compensation program that shall apply to Executive
during such renewal term, consistent with the requirements of this Section 2(b).

3. COMPENSATION

     In consideration for, among other things, Executive's continued services
to the Company, Executive's opportunities lost as a result of his continued
employment with the Company, and any risks associated with Executive's
continued employment with the Company, the following compensation provisions
shall apply, except as otherwise indicated, throughout the Employment Term:

     a) Executive's annual base salary shall be not less than $875,000.00,
subject to withholding of all taxes and similar charges required by applicable
law to be withheld and subject to annual review by the Board or the
Compensation Committee for possible increase. Executive's salary shall cease to
accrue immediately upon his termination of employment with the Company for any
reason.

     b) Subject to Section 2(b), Executive shall continue to participate in the
Company's Annual Incentive Compensation Program, on terms no less favorable
than those applicable to the Company's other most senior executives. The awards
under this Program are in cash, are contingent upon individual performance, are
paid on a calendar year basis and shall be determined by the financial results
of the Company as a whole. In addition, all annual incentive compensation
awards are subject to approval by the Compensation Committee or the Board.
Executive shall be eligible for a targeted award under the program of 75% (or
higher, if deemed appropriate by the Compensation Committee) of Executive's
annual base salary. For the calendar year in which Executive's employment
terminates for any reason (other than Cause), Executive or his beneficiary
shall receive an award under the Annual Incentive Compensation Program at the
time that Executive would have received such award had his employment with the
Company not terminated, in an amount equal to the product of (i) the award to
which Executive would be entitled by operation of the Annual Incentive
Compensation Program for performance in the year of Executive's employment
termination, as if his employment had not terminated, and (ii) a fraction, the
numerator of which is the number of days in the current fiscal year through
Executive's employment termination date, and the denominator of which is 365.
Except as set forth in the preceding sentence, immediately upon Executive's
termination of employment with the Company for any reason, Executive shall
cease to be eligible for awards under the Annual Incentive Compensation
Program.

                                     - 2 -
<PAGE>

     c) The final installment of Executive's non-statutory stock option grant
made on November 1, 1998 (covering 146,342 shares) will vest on November 1,
2001. However, these options will vest immediately upon earlier termination of
Executive's employment by the Company without Cause or termination of
employment by Executive on the basis of Constructive Discharge (each, as
defined below), including following a "change in control" of the Company, as
defined in the Executive Severance Agreement (the "Executive Severance
Agreement") dated as of November 1, 1998 between the Company and Executive and
as may be subsequently amended (a "Change in Control"), or upon Executive's
death or disability ("Disability") as defined under the Company's Long-Term
Disability Income Plan (the "LTD Plan"), and Executive shall have a period of
three years after the date of Executive's termination of employment to exercise
those options.

     d) The Compensation Committee shall consider Executive for future stock
option grants at such times as grants are considered for other officers of the
Company or at such other appropriate times as the Compensation Committee shall
deem appropriate.

     e) The restrictions on the final installment of Executive's restricted
stock award made on November 1, 1998 (covering 56,911 of Grace Common Stock)
will lapse on November 1, 2001. Executive may choose to receive this award in
the form of unrestricted shares or may convert the award to cash in the amount
of $10.25 for each unrestricted share; provided, however, that this restricted
stock award will vest immediately upon termination of Executive's employment by
the Company without Cause, by Executive on the basis of Constructive Discharge
(including following a Change in Control), or by reason of Executive's death or
Disability. Executive will continue to be eligible to vote such shares during
the period of restriction and receive applicable dividends, if any, on such
shares.

     f) Within five business days of the date of the execution of this
Agreement, Executive shall have received, for services to be rendered through
December 31, 2001, an $875,000 retention bonus (the "Initial Retention Bonus").
(The $875,000 equals Executive's annual base salary as of the date hereof.) In
addition, if Executive's employment with the Company pursuant to this Agreement
has not sooner been terminated, Executive shall become entitled to receive, and
shall receive: (i) on December 31, 2001, for services to be rendered through
December 31, 2002, a $500,000 retention bonus; and (ii) on December 31, 2002,
an additional $500,000 retention bonus. The payments described in clauses (i)
and (ii) of the immediately preceding sentence are herein collectively referred
to as the "Retention Bonus." If Executive's employment is terminated by the
Company for Cause or by Executive other than on the basis of Constructive
Discharge (including following a Change in Control), death or Disability,
Executive shall forfeit any unpaid portion of the Retention Bonus that
Executive was not entitled to receive on or before the date of such
termination. If Executive's employment is terminated by Executive on the basis
of Constructive Discharge (including following a Change in Control), death or
Disability, or by the Company without Cause, the Company shall pay to Executive
any unpaid portion of the Retention Bonus within five business days of such
termination.

4. CLAWBACK

     If Executive terminates his employment prior to December 31, 2001 other
than on the basis of Constructive Discharge (including following a Change in
Control), death, or Disability,

                                     - 3 -
<PAGE>

Executive agrees to repay to the Company a pro rata portion of the Initial
Retention Bonus previously paid to Executive equal to the product of (a)
$875,000 and (b) a fraction, the numerator of which is the number of days in the
period beginning on the date of such employment termination and ending on
December 31, 2001, and the denominator of which is 365. If Executive terminates
his employment after December 31, 2001 and prior to December 31, 2002 other than
on the basis of Constructive Discharge (including following a Change in
Control), death, or Disability, Executive agrees to repay to the Company a pro
rata portion of the Retention Bonus previously paid to Executive equal to the
product of (a) $500,000 and (b) a fraction, the numerator of which is the number
of days in the period beginning on the date of such employment termination and
ending on December 31, 2002, and the denominator of which is 365.

5.          SPECIAL STOCK APPRECIATION PAYMENT

     a) The Company shall make a stock appreciation payment to Executive
calculated as described in the next sentence, in the event that Executive
exercises any portion of the stock option described in Section 3(c) of this
Agreement that becomes vested (such vested options are referred to below as the
"Vested Initial Options"), at a time when the market value of a share of Grace
Common Stock is greater than the option price per share of the grant. With
regard to any such Vested Initial Options exercised by Executive, the stock
appreciation payment by the Company will be equal to the result of the
following equation: (i) the number of Vested Initial Options exercised,
multiplied by (ii) a dollar amount equal to the option price per share of the
grant minus $10.25.

     b) In addition, the Company shall make a stock appreciation payment to
Executive in the event that Executive cancels any portion of his Vested Initial
Options before exercise of such portion and at a time when the market value of
a share of Grace Common Stock is less than (or equal to) the option price per
share of the grant but greater than $10.25. In order to receive such a payment
for canceled options, Executive must inform the Company's chief human resources
officer in writing of Executive's election to cancel any portion of his Vested
Initial Options, and such cancellation shall be effective on the date such
writing is received by that officer. With regard to any Vested Initial Options
cancelled in accordance with that procedure, the payment by the Company under
this Section 5(b) will be equal to the result of the following equation: (i)
the number of Vested Initial Options that are canceled, multiplied by (ii) a
dollar amount equal to the "Fair Market Value" (as defined in the 1998 Grace
Stock Incentive Plan) of a share of Grace common stock on the date that the
cancellation is effective minus $10.25.

     c) In the event of Executive's death at a time when Executive's estate (or
other authorized person) is entitled to exercise Vested Initial Options, in
accordance with the terms of the 1998 Stock Incentive Plan, then the payments
and procedures described in this section shall apply with regard to such
person.

6. SEVERANCE PAY ARRANGEMENT

     In the event that Executive's employment is terminated by the Company
without Cause or by Executive on the basis of Constructive Discharge during the
Employment Term, Executive shall be entitled to receive a severance payment of
two times the dollar amount that equals 175%

                                     - 4 -
<PAGE>

of Executive's annual base salary at the rate in effect at the time his
employment is terminated. The parties hereby acknowledge that the severance
payment provided for in this Section 6 shall be earned by Executive upon
termination of his employment with the Company and that such severance payment
is intended by the parties to compensate Executive for the hardships he may
suffer as a result of his termination of employment with the Company. The
severance payment shall be paid to Executive in a single lump sum immediately
after Executive's date of employment termination, but in no event later than
five business days after such date. Notwithstanding any language to the contrary
contained in the Executive Severance Agreement, the LTD Plan, and/or the Grace
Executive Salary Protection Plan (the "ESP Plan"), any payments Executive is
entitled to receive under such agreement or plans shall be reduced,
dollar-for-dollar, but not below zero, by any payments actually paid to
Executive pursuant to this Section 6. Similarly, any payments previously paid to
Executive pursuant to the Executive Severance Agreement, the LTD Plan and/or the
ESP Plan Executive shall reduce, dollar-for-dollar, but not below zero, the
amount of Executive's claim for payments owing to him under this Section 6
(which reduction shall be applied first to any portion of such claim that is not
allowable in any bankruptcy case to which the Company is subject).

7. SUPPLEMENTAL PENSION ARRANGEMENT

     a) Except as otherwise provided below, Executive shall receive a
supplemental pension from the Company, which considers all of Executive's prior
years of actual service (i) with W.R. Grace & Co. from February 1968 to May
1969 and from February 8, 1971 to August 5, 1981, and (ii) with AlliedSignal
from August 1989 to October 1998 (the "Prior Years of Service"), as if such
service had been continuous service with the Company. The supplemental pension
will be payable from the general assets of the Company and it will not be
pre-funded in any manner.

     b) The supplemental pension shall be calculated by applying the Grace
Salaried Retirement Plan and the W.R. Grace & Co. Supplemental Executive
Retirement Plan, effective October 4, 1984, as amended through the date hereof
(the "SERP"), benefit formula to the Prior Years of Service and all of
Executive's years of service with the Company from and after November 1, 1998,
and using Executive's "final average compensation" (as defined by those plans)
to derive a total retirement benefit (the "TRB"); provided, that in determining
"final average compensation," only compensation earned by Executive with
respect to periods from and after November 1, 1998 shall be taken into account.
The Company shall then pay to Executive a supplemental pension equal to the
excess of the TRB over any retirement benefits to which Executive is Entitled
(as defined below) under the Grace Salaried Retirement Plan, the SERP and any
AlliedSignal defined-benefit retirement plans. For purposes of this Agreement,
Executive is "Entitled" to a benefit or payment under a plan, program or other
arrangement to the extent that Executive retains an actual right to receive
such benefit or payment, taking into consideration any reduction of such right
pursuant to any bankruptcy case to which the Company is subject. In the event
Executive does not actually receive a SERP benefit to which Executive is
Entitled, the Company shall pay such benefit to Executive as part of
Executive's supplemental pension benefit pursuant to this Section 7(b).

     c) In the event that, prior to November 1, 2001, Executive terminates his
employment other than on the basis of Constructive Discharge (including
following a Change in Control), death, or

                                     - 5 -
<PAGE>

Disability, or Executive is terminated by the Company for Cause, Executive shall
not be entitled to receive the supplemental pension payments provided for in
this Section 7.

     d) In the event that the Grace Salaried Retirement Plan is amended during
the Employment Term in a manner that affects the calculation of benefits
provided for in this Section 7, then the supplemental pension shall be adjusted
in an equitable manner consistent with such amendment. Any such adjustment
shall be determined by the actuary for the Grace Salaried Retirement Plan;
provided, however, that such adjustment shall not, in any event, decrease
Executive's supplemental pension below the amount that would be calculated
pursuant to this Section 7 based on Executive's Prior Years of Service, all of
his years of service with the Company from and after November 1, 1998, and his
"final average compensation" as of the day immediately preceding the effective
date of such amendment.

     e) Notwithstanding anything to the contrary in this Agreement or in any
plan or program relating to Executive's retirement benefits, in the event of
Executive's termination of employment with the Company on or after November 1,
2001, the Company shall, immediately after the date of Executive's termination
of employment with the Company, but in no event later than 30 business days
after such date, pay to Executive, in a lump sum (such lump sum determined,
except to the extent otherwise set forth in Section 7(b), in accordance with
the methodology and assumptions specified under the Grace Salaried Retirement
Plan), all supplemental retirement benefits payable to Executive by the Company
(including pursuant to the supplemental pension arrangement and the SERP),
whether or not payable pursuant to a plan of the Company. Notwithstanding
anything herein to the contrary, in the event Executive's employment with the
Company is terminated on the basis of Constructive Discharge (including
following a Change in Control), the Company shall use all commercially
reasonable efforts to pay Executive the lump sum payment specified in this
Section 7(e) within five business days after the date of Executive's
termination of employment, but in no event later than 30 business days after
such date.

8. CAUSE

     "Cause," for purposes of this Agreement, means:

     a) Commission by Executive of a criminal act (i.e., any act which, if
successfully prosecuted by the appropriate authorities would constitute a crime
under state or federal law) or of significant misconduct, in each case which
has had or will have a direct material adverse effect upon the business
affairs, properties, reputation, operations, or results of operations or
financial condition of Company,

     b) Refusal or failure of Executive to comply with the mandates of the
Board (unless any such Board mandate constitutes a ground for Constructive
Discharge pursuant to Section 9 and, prior to Executive's failure to comply
with such mandate, Executive provides written notice to the Board indicating
that such mandate constitutes a ground for Constructive Discharge), or failure
by Executive substantially to perform Executive's duties hereunder, other than
any failure resulting from Executive's total or partial incapacity due to
physical or mental illness, which refusal or failure has not been cured within
30 days after written notice thereof has been given to Executive, or

                                     - 6 -
<PAGE>

     c) Any material breach of any of the terms of this Agreement by Executive,
which breach has not been cured within 30 days after written notice thereof has
been given to Executive.

9. CONSTRUCTIVE DISCHARGE

     "Constructive Discharge," for purposes of this Agreement, means the
occurrence of any of the following without Executive's prior written consent:

     a) any change in Executive's title from that set forth in Section 1 of
this Agreement,

     b) the relocation of the Company's headquarters to a location more than 35
miles away from its current site, as set forth in Section 1 of this Agreement,

     c) any material diminution in Executive's level of authority and freedom to
exercise the authority delegated to Executive by the Board, other than an
isolated, insubstantial and inadvertent action that is not made in bad faith and
is remedied by the Company within 30 days after written notice thereof has been
given by Executive,

     d) the assignment to Executive of any duties inconsistent with Executive's
status as Chairman, President and Chief Executive Officer of the Company, other
than an isolated, insubstantial and inadvertent failure that is not made in bad
faith and is remedied by the Company within 30 days after written notice
thereof has been given by Executive,

     e) the Company fails, within 60 days following the entry of an order for
relief with respect to a bankruptcy case (to which the Company is subject) to
properly file a motion to assume this Agreement and all of the Company's
obligations hereunder with the court having jurisdiction over such case,

     f) the Company fails to obtain, within 90 days following the entry of an
order for relief with respect to a bankruptcy case (to which the Company is
subject) from the court having jurisdiction over such case, authorization to
assume this Agreement and to pay the compensation and other amounts owing to
Executive under this Agreement when and as such amounts become due and payable
in accordance with the provisions hereof,

     g) any material breach of this Agreement by the Company, which breach has
not been cured within 30 days after notice thereof has been given to the
Company by Executive,

     h) in accordance with Section 2(b), written notice by the Company to
Executive indicating that the Company does not wish to extend the Initial Term,
or any renewal term, or

     i) the determination by Executive that the compensation arrangements
applicable to him during any future renewal term do not comply with Section
2(b) of this Agreement, after notice by Executive to the Company thereof and
failure by the Company to remedy such noncompliance within 30 days of receipt
of such notice; provided, however, that any such notice shall be delivered by
Executive to the Company not later than 90 days prior to the scheduled
commencement of such renewal term.

                                     - 7 -
<PAGE>

Any good faith determination of "Constructive Discharge" made by Executive
shall be conclusive.

A termination of employment by Executive on the basis of Constructive Discharge
shall be effectuated by giving the Company written notice of the termination,
setting forth in reasonable detail the specific conduct of the Company that
constitutes Constructive Discharge and the specific provision(s) of this
Agreement on which Executive relies. A termination of employment by Executive
on the basis of Constructive Discharge pursuant solely to Section(s) 9(a),
9(b), and/or 9(e) shall be effective on the fifth business day following the
date such notice is given, unless the notice sets forth a later date (which
date shall in no event be later than 30 days after the notice is given). A
termination of employment by Executive on the basis of Constructive Discharge
pursuant to Section 9(c), 9(d) or 9(f) shall be effective 30 days after such
notice is given.

Executive's failure or delay, at any time throughout the Employment Term, to
exercise Executive's right to terminate his employment on the basis of
Constructive Discharge, shall not be deemed a waiver of any such right, and,
except as otherwise provided in this Section 9, Executive shall continue to
possess such right to terminate his employment based on Constructive Discharge
at any time during the Employment Term.

A termination of Executive's employment by Executive other than on the basis of
Constructive Discharge shall be effectuated by giving the Company written
notice of the termination.

10. RELOCATION ASSISTANCE

     Subject to the restrictions set forth in this Section 10, the Company
shall, upon written request from Executive received by the Company after the
date of Executive's termination of employment with the Company, provide to
Executive all relocation assistance described in the Headquarters Office
Relocation Policy (the "Policy") for current employees in effect as of the date
of this Agreement (copy attached hereto). The Company's obligation to provide
relocation assistance to Executive pursuant to this Section 10 shall continue
for a period of two years from the later of the date of Executive's termination
of employment with the Company or the date of termination of Executive's
service as a member of the Board. The relocation assistance to be provided to
Executive pursuant to this Section 10 shall be available only for relocation
within the continental United States. Notwithstanding anything contained in the
Policy to the contrary, the Company shall provide Executive with two months'
salary, grossed up for federal, state and local income taxes, to cover
incidental relocation expenses. In addition, Executive's "capital loss
protection" (in the event Executive sells his current residence) shall be
grossed up for federal, state and local income taxes and shall not be subject
to the limitations set forth in the Policy. Notwithstanding the foregoing, if,
prior to October 31, 2001, Executive terminates his employment other than on
the basis of Constructive Discharge (including following a Change in Control),
death, or Disability, then the Company shall not be required to provide any
relocation assistance to Executive pursuant to this Section 10.

                                     - 8 -
<PAGE>

11. LEGAL EXPENSES

     The Company agrees to reimburse Executive for reasonable legal expenses,
not to exceed $30,000, that Executive incurs with respect to negotiating this
Agreement.

12. FINANCIAL COUNSELING PROGRAM

     As an officer of the Company, Executive shall, throughout the Employment
Term, continue to be eligible to participate in the Company's Financial
Counseling Program. This Program provides Executive with financial and estate
planning and income tax preparation assistance. The Company shall pay up to
$10,000 per calendar year for reasonable expenses relating to such assistance.

13. COMPANY CAR

     Throughout the Employment Term, the Company shall continue to arrange for
Executive to lease, at the Company's expense, an automobile of Executive's
choice similar to the automobile currently used by Executive at Company
expense, for Company business and for Executive's personal use.

14. EXECUTIVE PHYSICAL PROGRAM

     As an officer of the Company, Executive shall, throughout the Employment
Term, continue to be entitled to receive a Company-paid annual executive
physical examination.

15. CLUB MEMBERSHIP

            Throughout the Employment Term, the Company shall continue to
provide Executive with membership at Cattail Creek Country Club of Howard
County, Maryland (or, during the Employment Term, any successor country or
luncheon club of Executive's choice) (the "Club"), in addition to any corporate
club memberships maintained by the Company. With respect to the Club, the
Company shall pay Executive's membership deposit and Executive shall pay any
annual dues applicable to his Club membership. The Company shall not seek to
obtain a refund of any deposit made by the Company to the Club for so long as
Executive continues to pay his annual dues, including during periods following
the Employment Term.

16. VACATION

     As an officer of the Company, Executive shall continue to be entitled to
four weeks of paid vacation per full calendar year during the Employment Term
and may carry over unused vacation time in accordance with applicable Company
policy.

17. MISCELLANEOUS FRINGE BENEFITS

     As an employee and senior officer of the Company, Executive shall, at all
times throughout his Employment Term, participate in all Company fringe benefit
plans and

                                     - 9 -
<PAGE>

programs, as in effect from time to time (subject to the terms and conditions of
each such plan or program) on terms and conditions no less favorable than those
applicable to the Company's other most senior officers.

18. SECURITY

     During the Employment Term, the Company shall continue to provide
appropriate security for Executive, Executive's spouse and Executive's primary
residence.

19. INDEMNIFICATION COMMITMENT

     The Company shall, to the extent permitted by applicable law, indemnify
Executive and hold Executive harmless from and against any and all losses and
liabilities Executive may incur as a result of his performance of his duties
hereunder in accordance with the provisions of this Agreement (except those
liabilities that result from any behavior by Executive that is enumerated in
the "Cause" definition of this Agreement). In addition, the Company shall
indemnify and hold Executive harmless against any and all losses and
liabilities that Executive may incur, directly or indirectly, as a result of
any third party claims brought against Executive (other than by any taxing
authority) with respect to the Company's performance of (or failure to perform)
any commitment made to Executive in Section 3 of this Agreement. The Company
shall obtain such policy or policies of insurance as it reasonably may deem
appropriate to effect this indemnification; provided, however, that in no event
shall the Company modify its insurance coverage with respect to Executive in a
manner that renders such coverage less favorable to Executive than that in
force as of the date hereof.

20. AIR TRAVEL

     In addition to the usual Company policies regarding air travel by senior
officers on Company business, the Company shall continue to provide Executive
with travel by chartered aircraft or with travel on an aircraft fractionally
owned by the Company, at times requested by Executive including reasonable
personal travel that is included as taxable income to Executive.

21. NOTICES

     Executive and the Company agree that any notices and other communications
permitted or required under this Agreement shall be in writing and shall be
given by hand delivery to the other party or sent by registered or certified
mail, return receipt requested, postage prepaid, addressed as follows:

                                    If to Executive:

                                                Paul J. Norris
                                                W.R. Grace & Co.
                                                7500 Grace Drive
                                                Columbia, MD  21044

                                    If to the Company:

                                     - 10 -
<PAGE>

                                                W.R. Grace & Co.
                                                Attention:  General Counsel
                                                7500 Grace Drive
                                                Columbia, MD  21044

                                                with a copy to:

                                                Andrew R. Brownstein, Esq.
                                                Wachtell, Lipton, Rosen & Katz
                                                51 W. 52nd St.
                                                New York, NY  10019

or to such other address as either party furnishes to the other in writing in
accordance with this Section 21. Notices and communications shall be effective
when actually received by the addressee.

22. GOVERNING LAW AND DISPUTE RESOLUTION

     a) Any dispute, controversy or claim arising out of or relating to this
Agreement, a breach thereof or the coverage or enforceability of this Section
22 shall be settled by arbitration in accordance with the laws of the State of
Maryland, without respect to the conflict of laws rules thereof, and the
arbitration shall be conducted in Maryland or such other location as the
Company and Executive may mutually agree in accordance with the Commercial
Arbitration Rules of the American Arbitration Association, as such rules are in
effect in New York, NY on the date of delivery of demand for arbitration, which
demand shall be provided in accordance with Section 21 of this Agreement. The
parties expressly acknowledge that they are waiving their rights to seek
remedies in court, including without limitation the right (if any) to a jury
trial.

     b) There shall be three arbitrators, one to be chosen by each party at
will within 10 business days from the date of delivery of demand for
arbitration and the third arbitrator to be selected by the two arbitrators so
chosen. If the two arbitrators are unable to select a third arbitrator within
10 business days after the last of the two arbitrators is chosen by the
parties, the third arbitrator shall be designated, on application by either
party, by the American Arbitration Association.

     c) The decision of a majority of the arbitrators shall be final and
binding on both parties and their respective heirs, executors, administrators,
personal representatives, successors and assigns. Judgment upon any award of
the arbitrators may be entered in any court of competent jurisdiction, or
application may be made to any such court for the judicial acceptance of the
award and for an order of enforcement.

     d) The Company shall pay the fees and expenses incurred in connection with
any arbitration arising out of this Agreement, including attorney's fees,
unless a majority of the arbitrators concludes that such arbitration procedure
was not instituted in good faith by Executive, in which case each party shall
bear its own expenses.

                                     - 11 -
<PAGE>

23. SUCCESSORS

     a) Except as otherwise provided herein, this Agreement is personal to
Executive, and without the prior written consent of the Company, shall not be
assignable by Executive other than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable
by Executive's legal representatives.

     b) This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns. Except as provided in Section 23(c),
this Agreement shall not be assignable by the Company without the prior written
consent of Executive.

     c) The Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company to assume expressly and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place.
"Company" means the Company as hereinbefore defined and any successor to its
business and/or assets as aforesaid that assumes and agrees to perform this
Agreement by operation of law or otherwise.

24. EXECUTIVE'S RIGHTS; SURVIVAL

     In no event shall Executive be obligated to seek other employment or take
any other action to mitigate the amounts payable to Executive under this
Agreement, nor shall the amount of any payment required hereunder be reduced by
any compensation or other payment earned or received by Executive as a result
of his employment with any other employer. Except as otherwise provided herein,
all of Executive's rights under Sections 3, 4, 5, 6, 7, 10, 11, 15, 17, 19, 22,
23, 24, 25 and 26 of this Agreement, to the extent applicable, shall survive
the termination of his employment and/or the termination of this Agreement.

25. SEVERABILITY

     If any provision of this Agreement is held invalid or unenforceable in
whole or in part, such provision, to the extent it is invalid or unenforceable,
shall be revised to the extent necessary to make the provision, or part
thereof, valid and enforceable, consistent with the intentions of the parties
hereto. Any provision of this Agreement that is held invalid or unenforceable,
in whole or in part, shall not affect the validity and enforceability of the
other provision of this agreement, which shall remain in full force and effect.

26. MISCELLANEOUS

     a) The captions of this Agreement are not part of the provisions hereof
and shall have no force or effect.

     b) This Agreement may be amended, superseded or canceled only by a written
instrument specifically stating that it amends, supersedes or cancels this
Agreement, executed by Executive and the Company.

                                     - 12 -
<PAGE>

c) Executive and the Company acknowledge that this Agreement contains the entire
understanding of the parties concerning the subject matter hereof, and that this
Agreement supersedes the letter agreement between Executive and the Company
dated October 26, 1998. Except as expressly otherwise provided herein, this
Agreement shall not adversely affect Executive's right to participate in, or
receive any benefit under, any incentive, severance or other benefit plan or
program in which Executive may from time to time participate.

            IN WITNESS WHEREOF, Executive has hereunto set his hand and,
pursuant to the authorization from the Board, the Company has caused these
presents to be executed in its name on its behalf, all as of the day and year
first above written.

                       /s/ Paul J. Norris
                       -------------------------------------------------------
                       Paul J. Norris

                       W.R. GRACE & CO.

                       By: /s/ W. Brian McGowan
  Name:
                           ---------------------------------------------------
                       W. Brian McGowan
                          Title:   Senior Vice President

                                     - 13 -

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