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                                                                   EXHIBIT 10.15

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                              EMPLOYMENT AGREEMENT

                                     BETWEEN

                              INTERMET CORPORATION

                                       AND

                                  GARY F. RUFF

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                              EMPLOYMENT AGREEMENT

     THIS AGREEMENT (the "Agreement"), effective as of the date of execution
hereof (the "Effective Date"), amends and supersedes the Employment Agreement
dated as of the 1st day of June, 1999, by and between INTERMET CORPORATION, a
Georgia corporation having its principal place of business in Troy, Michigan
(the "Company"), and GARY F. RUFF, a resident of Rochester Hills, Michigan (the
"Executive").

     The Company desires to continue the services of the Executive, and the
Executive is willing to render such services, in accordance with the terms
hereinafter set forth.

     Accordingly, the Company and the Executive agree as follows:

                                   ARTICLE I

                                     DUTIES

     1.01 Duties. The Executive shall continue to be a member of the Board of
Directors of the Company (the "Board") and following the Board's July, 2003
meeting, shall be appointed as the Chief Executive Officer and President of the
Company (the "Initial Election") and shall assume the duties and
responsibilities commensurate with those positions, it being contemplated that
the shareholders and Directors of the Company will elect and re-elect the
Executive to those offices throughout the Contract Term (as defined in Section
2.01). It is anticipated that Executive will be elected to serve as Chairman of
the Board ("Chairman") following the July, 2004 Board meeting. The Executive
will report solely to the Board. During the Contract Term, and excluding any
periods of vacation, sick leave or Disability (as defined in Section 6.01) to
which the Executive is entitled, the Executive agrees to devote the Executive's
full attention and time to the business and affairs of the Company and to use
the Executive's best efforts to perform faithfully and efficiently the duties
and responsibilities of the Executive's positions as described herein.

     1.02 Other Activities. During the Contract Term (as defined in Section
2.01), it shall not be a violation of this Agreement for the Executive to (a)
serve on corporate, civic or charitable boards or committees, (b) deliver
lectures, fulfill speaking engagements or teach at educational institutions or
(c) manage personal investments, so long as such activities are consistent with
the policies of the Company as of the date hereof and do not materially
interfere with the performance of the Executive's duties in accordance with this
Agreement.

                                   ARTICLE II

                                TERM OF AGREEMENT

     2.01 Term. Subject to the termination provisions hereinafter provided, the
term of this Agreement shall commence as of the Effective Date hereof and end on
the third anniversary of such date ("Contract Term"); provided, that the
Contract Term shall be automatically extended each day commencing with the
Effective Date for an additional day such that commencing on the Effective Date
this Agreement shall perpetually have an unexpired term of three years until

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the date written notice is provided by either the Company or the Executive that
this Agreement is not to be further extended beyond three years from the date of
such notice.

                                  ARTICLE III

                                  COMPENSATION

     3.01 Base Salary. During the Contract Term, the Company shall pay or cause
to be paid to the Executive in cash, in accordance with the normal payroll
practices of the Company for peer executives, in installments not less
frequently than monthly, an annual base salary ("Annual Base Salary") equal to
$400,000 per year until the Initial Election at which time his Annual Base
Salary shall be increased to $450,000 per year. Upon the first anniversary of
the Effective Date, Executive's Annual Base Salary shall be increased to
$500,000 per year. The Company may from time to time increase the Executive's
Annual Base Salary, provided that it shall not be reduced after any such
increase, and the term Annual Base Salary as used in this Agreement shall refer
to the Annual Base Salary as so increased.

     3.02 Bonus. The Company shall pay or cause to be paid to the Executive a
bonus ("Annual Bonus") for each year of the Contract Term equal to the Bonus
Percentage (defined below) multiplied by the Company's pretax income for that
fiscal year the last day of which falls within the calendar year with respect to
which the bonus is payable. The percentage of Company income upon which the
bonus shall be determined ("Bonus Percentage") for periods until the Initial
Election shall be equal to one-half of one percent (0.5%) of such income and
following the Initial Election, shall be equal to eight-tenths of one percent
(0.8%) of such income. Upon the first anniversary of the Effective Date, the
Annual Bonus for the Executive shall be increased to one percent (1%) of such
income. In the event the Company adopts a bonus plan applicable to executive
officers which the Board determines reasonably and in good faith offers
Executive similar bonus opportunities as provided in this Section 3.02, then
Executive shall be eligible for and participate in such plan in lieu of the
Annual Bonus provided herein and notwithstanding the provisions of this Section
3.02. For purposes of determining the Annual Bonus, the Company's income shall
be calculated in accordance with generally accepted accounting principles
consistently applied, prior to deduction for applicable federal, state and local
taxes, and prior to payment of executive bonuses and minority interest payments
with respect to subsidiaries and affiliates of the Company of which the Company
owns less than 100%. The portion of the 2003 Annual Bonus with respect to the
period from the Effective Date through June 30, 2003 shall be based upon the
Company's financial statements for the period ending June 30, 2003 and the
portion of the 2003 Annual Bonus for the period July 1, 2003 through December
31, 2003 shall be based upon the Company's income for the entire 2003 calendar
year, reduced by the Company's income for the Effective Date through June 30,
2003 (based upon the Company's financial statements for such period).

     Restricted Stock. Pursuant to the Company's Executive Stock Option and
Incentive Award Plan (the "Incentive Plan"), as of the Initial Election the
Company shall grant Executive 60,000 restricted shares of the Company's common
stock which will vest in twenty-five percent (25%) increments on the first,
second, third, and fourth anniversary of the Initial Election. Until vested, the
Restricted Stock shall generally be non-transferable; provided that Executive
shall have the right to transfer such shares to Executive's spouse or
descendants or any

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trust or other entity that principally benefits his spouse and/or descendants.
Until the shares of Restricted Stock are vested, such shares shall be held by
the Company; provided that, Executive shall immediately have the right to vote
such shares at any meeting of the Company's stockholders and shall immediately
have the right to receive all cash dividends (less any applicable withholding
taxes) with respect to such shares. In the event Executive's employment
terminates upon his death or Disability (defined in Section 6.01, below), or is
terminated by the Company without Cause (defined in Section 6.02) or Executive
terminates with Good Reason (defined in Section 6.04), the Restricted Stock
shall immediately become 100% fully vested and non-forfeitable. In the event of
Executive's termination for any other reason, Executive shall forfeit any shares
of the Restricted Stock which were not vested immediately prior to his Date of
Termination. Except as otherwise provided in this Section 3.03, the Restricted
Stock shall be subject to the terms, conditions and additional restrictions in
the Incentive Plan and the written award agreement evidencing the grant of the
Restricted Stock.

                                   ARTICLE IV

                                 OTHER BENEFITS

     4.01 Incentive, Savings and Retirement Plans. In addition to Annual Base
Salary, Annual Bonus and the Restricted Stock, the Executive shall be entitled
to participate during the Contract Term in all incentive savings and retirement
plans, practices, policies and programs applicable to other peer executives of
the Company, including, without limitation those benefits identified in Sections
4.02 through 4.09, below; provided, that Executive shall not participate in any
Company severance plan, program, policy or practice or in any other plan,
practice, program or policy to the extent the Board reasonably and in good faith
determines that such participation would be duplicative of compensation,
benefits or perquisites otherwise provided by this Agreement.

     4.02 Welfare Benefits. During the Contract Term, the Executive and/or the
Executive's family, as the case may be, shall be eligible for participation in
and shall receive all benefits under welfare benefit plans, practices, policies
and programs provided by the Company (including, and without limitation,
medical, prescription, dental, disability, salary continuance, employee life,
group life, dependent life, accidental death and travel accident insurance plans
and programs) and applicable to other peer executives of the Company subject to
the terms and conditions and eligibility requirements of each such plan,
practice, policy, or program.

     4.03 Fringe Benefits. During the Contract Term, the Executive shall be
entitled to fringe benefits on the same terms and conditions applicable to other
peer executives of the Company.

     4.04 Expenses. During the Contract Term, the Company shall reimburse
Executive for all reasonable employment-related expenses incurred by the
Executive upon the Company's receipt of accountings in accordance with
practices, policies and procedures applicable to peer executives of the Company.

     4.05 Automobile. During the Contract Term and in accordance with the
Company's applicable policies, if any, the Company shall furnish to the
Executive a luxury automobile or

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SUV of his choice; provided, that the manufacturer's suggested retail price for
such vehicle shall not exceed $65,000. The Employer shall pay for all expenses
associated with the use and enjoyment of the automobile; and shall replace the
automobile with a new one on a schedule not less frequently than once every
three years. The Company shall issue the Executive a copy of IRS Form 1099 for
tax purposes which reflects the value of the Executive's personal use of the
vehicle, and shall pay to the Executive an amount in cash ("Tax Reimbursement
Payment") which, after reducing such payment by the amount of federal, state,
city, local and any other income or other taxes ("Taxes") applicable to the Tax
Reimbursement Payment, will equal the amount of Taxes which must be paid by the
Executive with respect to the value of the Executive's personal use of the
vehicle.

     4.06 Office and Support Staff. During the Contract Term, the Executive
shall be entitled to an office or offices of a size and furnishings and other
appointments, and to personal secretarial and other assistance provided with
respect to other peer executives of the Company, but which is consistent with
his positions as Chief Executive Officer and President.

     4.07 Vacation. During the Contract Term, the Executive shall be entitled to
paid vacation time in accordance with the plans, practices, policies, and
programs applicable to other peer executives of the Company, but not less than
four weeks for each calendar year.

     4.08 Retirement Benefit. The Executive shall be entitled to a retirement
benefit equal to one year of final Annual Base Salary for each three (3)
continuous years of employment with the Company commencing on the Effective Date
provided that, for purposes of this paragraph, the Executive shall be credited
for periods of continuous employment of less than three years on a pro-rata
basis to be calculated by multiplying the Executive's final Annual Base Salary
by a fraction, the numerator of which shall be the number of days of continuous
employment during the three-year period and the denominator of which is the
total number of days in the three-year period. The Retirement Benefit shall
fully vest and become non-forfeitable upon the first to occur of the following
events: (a) Executive's continuous employment through the date that is the fifth
anniversary of the Effective Date; (b) Executive's termination upon his death or
Disability; (c) termination of Executive by the Company without Cause; or (d)
Executive's termination of employment with Good Reason. Executive shall forfeit
the Retirement Benefit in its entirety if he terminates without Good Reason
(other than for death or Disability) prior to the fifth anniversary of the
Effective Date and shall forfeit the Retirement Benefit in its entirety whether
vested or unvested in the event of his termination by the Company for Cause at
any time. The vested Retirement Benefit, if any, shall be paid immediately in a
lump-sum upon the Executive's termination of employment for any reason other
than Cause.

     4.09 Country or Other Private Club Dues. During the Contract Term,
Executive shall be entitled to monthly reimbursement of any country club and/or
other private club dues and/or assessments incurred by him to a maximum of
$1,000 per month. Payments hereunder shall include a Tax Reimbursement Payment
with respect to such dues described in Section 4.05.

     4.10 Executive Indemnification. The Executive shall be entitled to
indemnification to the full extent permitted by Michigan or other applicable
law, including but not limited to attorney fees, judgments and amounts paid in
settlement in accordance with and on terms not less favorable than the Directors
and Officer's coverage currently provided to the Company's officers

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and directors in the Company's By-Laws (a copy of which is attached hereto as
Exhibit A) as of the Effective Date and to the extent more favorable than that
provided in the By-Laws in effect as of the Effective Date hereof, pursuant to
the Company's By-Laws as may be in effect from time to time in the future.

     4.11 Personal Use of Company Jet. Executive shall be entitled to use the
Company plane for nonbusiness personal or family use for up to 20 flight hours
per fiscal year during the Contract Term. Executive shall be responsible for any
tax liabilities he incurs as a result of such usage.

                                   ARTICLE V

                            TERMINATION OF EMPLOYMENT

     5.01 Termination of Employment for Cause or Other Than for Good Reason. If,
during the Contract Term, the Company terminates the Executive's employment for
Cause (as defined in Section 6.02) or the Executive terminates employment other
than for Good Reason (as defined in Section 6.04), the Company shall pay to
Executive in a lump-sum immediately after the Date of Termination (as defined in
Section 6.05) that portion of the Executive's Annual Base Salary, if any, which
is accrued but unpaid as of the Date of Termination. Executive will not be
entitled to receive any other compensation or benefits under this Agreement.
Upon termination for Cause, Executive shall forfeit his rights to any Restricted
Stock that is unvested as of his Date of Termination. In addition, in the event
Executive is terminated for Cause, Executive will forfeit any and all rights to
the Retirement Benefit and to any unpaid Annual Bonus as of the Date of
Termination. Notwithstanding the foregoing, no termination of employment for
Cause shall be valid unless, no fewer than seven (7) days prior to the Date of
Termination, the Company provides Executive with written notice of its intent to
consider termination of the Executive's employment for Cause, including a
detailed description of the specific reasons which form the basis for such
consideration ("Notice of Consideration"). Thereafter, for a period of not less
than fourteen (14) days after the date the Notice of Consideration is provided,
the Executive shall have the opportunity to appear before the Board, with or
without legal representation, at the Executive's election, to present arguments
on his own behalf. Following such presentation to the Board, the Executive shall
be terminated for Cause only if (a) three-quarters (3/4) of the members of the
Board determine reasonably and in good faith that the actions of the Executive
constituted Cause and that the Executive's employment should accordingly be
terminated for Cause; and (b) the Board provides the Executive with a written
determination ("Notice of Termination") setting forth in full specificity the
basis of such termination of employment.

     5.02 Termination of Employment for Death or Disability. If, before the end
of the Contract Term, the Executive's employment terminates due to death or
Disability, the Company shall pay to the Executive (or to the Executive's
Beneficiary, as defined in Section 8.04) in a lump-sum immediately after the
Date of Termination an amount which is equal to the sum of the amounts specified
in (a), (b) and (c) as follows:

     (a)  the portion of Executive's Annual Base Salary, if any, which is
          accrued but unpaid as of the Date of Termination;

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     (b)  the amount of any Annual Bonus accrued during any period which ended
          during the Contract Term prior to the Date of Termination, but which
          is unpaid as of the Date of Termination;

     (c)  Executive (or his personal representative, the person to whom the
          option is transferred by will or applicable laws of descent and
          distribution or the beneficiary designated in accordance with the
          Incentive Plan) shall be entitled to exercise any vested and
          unexercised option for a period of one-year following his Date of
          Termination; and

     (d)  a pro-rata portion of the Annual Bonus (the "Pro-Rata Bonus") for the
          fiscal year during which Executive's termination occurs equal to the
          Annual Bonus amount that Executive would have received, if any, for
          such year if he had remained employed throughout such fiscal year
          multiplied by a fraction the numerator of which is the number of days
          Executive was employed during such fiscal year and the denominator of
          which is 365. The Pro-Rata Bonus shall be calculated and payable at
          the same time the Annual Bonus is customarily calculated and paid to
          the Company's executives.

     5.03 Termination of Employment by the Company Without Cause or by the
Executive for Good Reason. If, before the end of the Contract Term, the
Executive's employment is terminated by the Company without Cause (defined in
Section 6.02) or by the Executive for Good Reason (defined in Section 6.04), the
Executive shall receive the following:

     (a)  the portion of Executive's Annual Base Salary and Annual Bonus, if
          any, that is accrued but unpaid as of the Date of Termination;

     (b)  a Pro-Rata Bonus (calculated as described in Section 5.02(c);

     (c)  an amount equal to two (2) times the sum of Executive's Annual Base
          Salary and Annual Bonus. For purposes of this paragraph (c),
          Executive's Annual Bonus shall be equal to the Annual Bonus paid to
          Executive with respect to the fiscal year ended immediately prior to
          Executive's Date of Termination; provided, that if Executive's Date of
          Termination is prior to the close of the first full fiscal year
          following the Effective Date, then the Annual Bonus for purposes of
          this paragraph (c), only shall be $150,000;

     (d)  an amount equal to Executive's unvested benefits, if any, under any
          profit sharing plan, retirement plan or ESOP which are forfeited on
          account of the Executive's employment being terminated including
          without limitation the Retirement Benefit described in Section 4.08;

     (e)  Executive's unvested options and restricted stock (including, but not
          limited to the Restricted Stock described in Section 3.03), if any,
          shall fully vest and become non-forfeitable immediately. Executive
          shall be

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          entitled to exercise any unexercised option for a period of ninety
          (90) days following his Date of Termination; and

     (f)  the Company shall continue to provide medical and life insurance as
          described in Section 4.02 for a period of two years following the Date
          of Termination; provided, that Executive shall pay an amount equal to
          the amount active employees pay for such coverage as of the Date of
          Termination; provided further, that notwithstanding the foregoing, the
          amount of any benefits provided under Section 4.02 shall be reduced or
          eliminated to the extent the Executive becomes entitled to duplicative
          benefits by virtue of his subsequent employment after the Date of
          Termination; and

     (g)  in the event such termination is within twelve (12) months of a Change
          in Control (as defined in Section 6.03), Executive shall be entitled
          to three (3) times (rather than 2 times) the Annual Base Salary and
          Annual Bonus amounts described in paragraph (c), above and shall be
          entitled to three (3) years (rather than 2 years) of the continued
          medical and life insurance benefits described in paragraph (f), above.

     5.04 Other Termination Benefits. Except to the extent the Board determines
reasonably and in good faith that it would be duplicative of benefits provided
in this Agreement and excluding any severance or termination benefits, in
addition to any amounts or benefits payable upon termination of employment
hereunder and except as otherwise provided herein, the Executive shall be
entitled to any payments or benefits explicitly provided under the terms of any
plan, policy or program of the Company subject to the terms and conditions of
such plan, policy or program or as otherwise required by applicable law.

     5.05 Gross-up of Excise Taxes.

     (a)  Subject to Section 5.05(b), in the event it shall be determined that
          any payment or distribution by the Company or its affiliated companies
          to or for the benefit of the Executive (whether paid or payable or
          distributed or distributable pursuant to the terms of this Agreement
          or otherwise, but determined without regard to any additional payments
          required under this Section 5.05) (a "Payment") would be subject to
          the excise tax imposed by Section 4999 of the Internal Revenue Code of
          1986, as amended (the "Code"), or imposed by any other taxing
          authority, 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, are hereinafter collectively referred to
          as the "Excise Tax"), then the Executive shall be entitled to receive
          an additional payment (a "Gross-Up Payment"), no later than thirty
          (30) days prior to the due date (without regard to any extensions
          thereof) for payment of the Excise Tax, in an amount such that after
          payment by the Executive of all Taxes (and any interest and penalties
          imposed with respect thereto) including, without limitation, any
          income and employment taxes and Excise Tax, imposed

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          upon the Payments. Calculations of Taxes shall be based upon the
          maximum marginal rates then in effect.

     (b)  Notwithstanding any other provision of this Section 5.05, if the
          aggregate After-Tax Amount (defined below) of the Payments and
          Gross-Up Payment that, but for this paragraph (b), would be payable to
          Executive, does not exceed 110% of the After-Tax Floor Amount (defined
          below), then no Gross-Up Payment shall be made to Executive and the
          aggregate amount of Payments payable to Executive shall be reduced
          (but not below the Floor Amount) to the largest amount which would
          both (i) not cause any Excise Tax to be payable by Executive and (ii)
          not cause any Payment to become nondeductible by the Company by reason
          of Section 280G of the Code (or any successor provision). For purposes
          of the preceding sentence, Executive shall be deemed to be subject to
          the highest effective after-tax marginal rate of Taxes. For purposes
          of this paragraph: (i) "After-Tax Amount" means the portion of a
          specified amount that would remain after payment of all Taxes paid or
          payable by Executive in respect of such specified amount; (ii) "Floor
          Amount" means the greatest pre-tax amount of Payments that could be
          paid to Executive without causing Executive to become liable for any
          Excise Taxes in connection therewith; and (iii) "After-Tax Floor
          Amount" means the After-Tax Amount of the Floor Amount.

     (c)  In the event that the amount of Excise Tax that the Executive paid in
          connection with any Payments or Gross-Up Payments is subsequently
          determined to be greater than the amount of the Executive's actual
          Excise Tax liability, the Executive shall repay to the Company at the
          time that the amount of the actual Excise Tax liability is finally
          determined the amount of the Gross-Up Payment attributable to such
          overpayment, plus interest on the amount of such overpayment at the
          applicable federal rate (as defined in Section 1274(d) of the Code).
          In the event that the amount of Excise Tax that the Executive paid in
          connection with any Payment or Gross-Up Payment is subsequently
          determined to be less than the amount of the Executive's actual Excise
          Tax liability, the Company shall make an additional Gross-Up Payment
          in respect of such underpayment (and in respect of any interest and
          penalties payable by the Executive to the Internal Revenue Service
          with respect to such underpayment) at the time that the amount of the
          actual Excise Tax liability is finally determined.

     (d)  All determinations required to be made under this Section 5.05 shall
          be made by the public accounting firm that is retained by the Company
          at the time immediately prior to the Change in Control. Such
          accounting firm shall provide its determinations to the Executive and
          such determinations shall be binding upon the Company and the
          Executive.

     (e)  The Executive and the Company shall each reasonably cooperate with the
          other in connection with any administrative or judicial proceedings

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          concerning the existence or amount of liability for Excise Tax and the
          expenses of any such proceedings shall be borne solely by the Company.

                                   ARTICLE VI

                               CERTAIN DEFINITIONS

     6.01 "Disability" means any medically determinable physical or mental
impairment, that can be expected to last for a continuous period of not less
than six (6) months, and that renders the Executive, with or without reasonable
accommodation, unable to perform the duties required under this Agreement. The
date of the determination of Disability is the date on which the Board, based on
such medical and other evidence and advice as it deems appropriate, reasonably
and in good faith determines that Executive suffers from a Disability.

     6.02 "Cause" means (a) Executive's commission of any felony or other crime
involving moral turpitude, fraud or dishonesty; (b) any serious misconduct in
the course of the Executive's employment; (c) the Executive's habitual neglect
of his duties (other than on account of Disability); or (d) any material breach
of the Agreement or any other written agreement with or written policy of the
Company; provided that, with respect to (d), following the Company's provision
of Notice of Consideration (defined in Section 5.01) to Executive, the Company
shall allow Executive to cure to the fullest extent possible any such breach
capable of cure for a period of seven (7) days following the Notice of
Consideration; provided however, that if such act or omission is determined
reasonably and in good faith by the Board to be intentional, knowing or
repeated, the Company shall not be required to provide Executive with such
opportunity to cure; provided, further, that for purposes of this Agreement,
Cause shall not mean:

         (i)   bad judgment or negligence other than habitual neglect of duty;

         (ii)  any act or omission believed by the Executive in good faith to
               have been in the interest of the Company (without intent of the
               Executive to gain therefrom, directly or indirectly, a profit to
               which the Executive was not legally entitled);

         (iii) any act or omission with respect to which a determination could
               properly have been made by the Board that the Executive met the
               applicable standard of conduct for indemnification or
               reimbursement under the By-Laws of the Company, any applicable
               indemnification agreement or the laws and regulations under which
               the Company is governed, in each case in effect at the time of
               such act or omission; or

         (iv)  any act or omission with respect to which Notice of Consideration
               is given more than twelve (12) months after the earliest date on
               which any member of the Board who is not a party to the act or
               omission knew of such act or omission.

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     6.03 "Change in Control" means the occurrence of any of the following
events:

          (a)  any "person" (as such term is defined in Section 3(a)(9) of the
               Securities Exchange Act of 1934 (the "Exchange Act") and as used
               in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) is or
               becomes a "beneficial owner" (as defined in Rule 13d-3 under the
               Exchange Act), directly or indirectly, of securities of the
               Company representing 30% or more of the combined voting power of
               the Company's then outstanding securities eligible to vote for
               the election of the Board of Directors of the Company (the
               "Voting Securities") provided, however, that the event described
               in this paragraph shall not be deemed to be a Change in Control
               by virtue of any of the following acquisitions: (i) by the
               Company or, direct or indirect, majority-owned subsidiaries of
               the Company, (ii) by any employee benefit plan sponsored or
               maintained by the Company or any corporation controlled by the
               Company, (iii) by any underwriter temporarily holding securities
               pursuant to any offering of such securities, (iv) pursuant to a
               Non-Control Transaction (as defined in paragraph (c)), (v)
               pursuant to any acquisition by the Executive or any group of
               persons including the Executive, or (vi) in which Voting
               Securities are acquired from the Company, if a majority of the
               Board of Directors of the Company approves a resolution providing
               expressly that the acquisition pursuant to this clause (vi) does
               not constitute a Change in Control under this paragraph (a);

          (b)  individuals who, as of the Effective Date, constitute the Board
               of Directors of the Company (the "Incumbent Board") cease for any
               reason to constitute at least a majority thereof, provided that
               (i) any person becoming a director subsequent to the Effective
               Date, whose election, or nomination for election, by the
               Company's shareholders was approved by a vote of at least
               three-quarters of the directors comprising the Incumbent Board
               (either by a specific vote or by approval of the proxy statement
               of the Company in which such person is named as a nominee for
               director, without objection to such nomination) shall be, for
               purposes of this paragraph (b), considered as though such person
               were a member of the Incumbent Board; provided, however, that no
               individual initially elected or nominated as a director of the
               Company as a result of an actual or threatened election contest
               with respect to directors or any other actual or threatened
               solicitation of proxies or consents by or on behalf of any person
               other than the Board of Directors shall be deemed to be a member
               of the Incumbent Board;

          (c)  the consummation of a merger or consolidation or similar form of
               corporate reorganization, or sale or other disposition of all or
               substantially all of the assets, of the Company (a "Business
               Combination") is consummated, unless immediately following such
               Business Combination: (i) more than 50% of the total Voting
               Securities of the corporation resulting from such Business
               Combination (including, without limitation,

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               for purposes of making such 50% determination, any shares owned
               through any entity which directly or indirectly has beneficial
               ownership of such Voting Securities) are represented by shares
               held by shareholders of the Company immediately prior to such
               Business Combination (either by remaining outstanding or being
               converted), (ii) no person (other than any holding company
               resulting from such Business Combination), any employee benefit
               plan sponsored or maintained by the Company (or the corporation
               resulting from such Business Combination), or any person which
               beneficially owned, immediately prior to such Business
               Combination, directly or indirectly, 30% or more of the Voting
               Securities) is the beneficial owner, directly or indirectly of
               30% or more of the total voting power of the outstanding voting
               securities eligible to elect directors of the corporation
               resulting from such Business Combination, and (iii) at least a
               majority of the members of the board of directors of the
               corporation resulting from such Business Combination were members
               of the Incumbent Board at the time of the execution of the
               initial agreement, or action of the Board of Directors, providing
               for such Business Combination (a "Non-Control Transaction"); or

          (d)  the stockholders of the Company approve a plan of complete
               liquidation or dissolution of the Company.

     Notwithstanding the foregoing, a Change in Control shall not be deemed to
occur solely because any person acquires beneficial ownership of more than 30%
of the Voting Securities as a result of the acquisition of Voting Securities by
the Company which, by reducing the number of Voting Securities outstanding,
increases the percentage of shares beneficially owned by such person; provided,
that if a Change in Control would occur as a result of such an acquisition by
the Company (if not for the operation of this sentence), and after the Company's
acquisition such person becomes the beneficial owner of additional Voting
Securities that increases the percentage of outstanding Voting Securities
beneficially owned by such person, then a Change in Control shall occur.

     6.04 "Good Reason" means the occurrence of any one of the following events:

          (a)  the failure of the Company's shareholders and the Board to elect
               and re-elect the Executive Chief Executive Officer, President and
               a member of the Board following the Initial Election,

          (b)  assignment to the Executive of any duties materially and
               adversely inconsistent with the Executive's position as specified
               in Article I hereof (or such other position to which he may be
               promoted), including status, offices, or responsibilities
               contemplated under Article I of this Agreement, or any other
               action by the Company which results in a material and adverse
               diminution in such position, status, offices, titles or
               responsibilities,

                                      -11-
<PAGE>

          (c)  the failure of the Company to assign this Agreement to a
               successor to the Company,

          (d)  any failure by the Company to comply with the provisions of
               Article III of this Agreement,

          (e)  the Company's requiring, without the Executive's prior written
               consent, the Executive to be based at any office or location more
               than 30 miles from the Troy, Michigan office, or

          (f)  any material adverse change in the terms and conditions of the
               Executive's employment under this Agreement.

Executive shall provide the Company written notice of any act or omission he
believes constitutes Good Reason hereunder within thirty (30) days after such
act or omission and any such act or omission identified in such written notice
to the Company shall constituted Good Reason hereunder only if the Company fails
to cure such act or omission within thirty (30) business days after written
notice from the Executive; provided, however, that if the act or omission is
intentional or knowing, the Executive shall not be required to provide such
opportunity to cure.

     6.05 "Date of Termination" means the date as of which the Executive's
employment with the Company is terminated by the Company or by the Executive for
any reason including, but not limited to, death or Disability.

                                  ARTICLE VII

                              RESTRICTIVE COVENANTS

     7.01 Confidential and Proprietary Information.

          (a)  Obligation to Keep Confidential. At all times during the term of
               Executive's employment with the Company and thereafter, Executive
               will hold in strictest confidence and will not disclose, use,
               lecture upon or publish any of the Confidential Information
               (defined below) of the Company and its affiliates ("Company
               Parties") except as such disclosure, use or publication may be
               required in connection with Executive's ordinary course
               performance of his services for the Company, or unless Executive
               is expressly authorized in writing by the Company to make such
               disclosure or use of Confidential Information in advance.
               Furthermore, Executive will keep secret all matters entrusted to
               Executive as an employee of the Company, and shall not use or
               attempt to use any such information in any manner which may
               injure or cause loss or may be calculated to injure or cause loss
               whether directly or indirectly to the Company or any of its
               affiliates. Further, Executive agrees that during his employment
               he shall not take, use or permit to be used any notes, memoranda,
               reports, lists, records, drawings, sketches, specifications,
               software programs, data, documentation or other materials of any
               nature

                                      -12-
<PAGE>

               relating to any matter within the scope of the business of the
               Company or concerning any of its dealings or affairs ("Company
               Materials") otherwise than for the benefit of the Company, and
               shall not use any Company Materials after the termination of
               Executive's employment. Notwithstanding the foregoing, however,
               Executive shall be permitted to disclose Confidential Information
               as may be required by a subpoena or other governmental order,
               provided that Executive first notifies the Company of such
               subpoena or order and allows the Company the opportunity to
               obtain a protective order or other appropriate remedy.

          (b)  Definition of Confidential Information. The term "Confidential
               Information" shall mean trade secrets, confidential knowledge,
               data or any other proprietary information of any of the Company
               Parties. By way of illustration but not limitation, "Confidential
               Information" includes (a) inventions, trade secrets, ideas,
               processes, formulas, source and object codes, data, programs,
               other works of authorship, know-how, improvements, discoveries,
               developments, designs and techniques (hereinafter collectively
               referred to as "Inventions"); and (b) information regarding plans
               (whether contemplated, initiated or completed) for research,
               development, new products, marketing and selling, business plans,
               budgets and unpublished financial statements, licenses, prices
               and costs, the identity of suppliers and customers, recruiting
               information and information regarding the skills and compensation
               of the employees of the Company or other personnel matters.
               "Confidential Information," however, does not include information
               that is or becomes publicly available through no breach of this
               Agreement (although the confidentiality restrictions of this
               Agreement shall continue to apply to information which only
               became public as a result of a breach of a confidentiality
               obligation owed to any of the Company Parties to the extent that
               Executive knows that the information became public by virtue of
               an improper disclosure).

          (c)  Third Party Information. Executive understands, in addition, that
               the Company Parties have received and in the future may receive
               from third parties confidential or proprietary information
               ("Third Party Information") subject to a duty on the part of the
               Company Parties to maintain the confidentiality of such
               information and to use it only for certain limited purposes.
               During the term of Executive's employment with the Company and
               thereafter, Executive will hold Third Party Information in the
               strictest confidence and will not disclose (to anyone other than
               Company personnel who need to know such information in connection
               with their work for the Company) or use, except in connection
               with Executive's work for the Company, any Third Party
               Information unless expressly authorized in writing by the Board
               in advance.

          (d)  Ownership and Assignment of Confidential Information and
               Proprietary Rights. Executive hereby assigns to the Company any
               rights Executive

                                      -13-
<PAGE>

               may have or acquire in Confidential Information, and recognizes
               that all Confidential Information shall be the sole property of
               the Company and its assigns and that the Company and its assigns
               shall be the sole owner of all patent rights, copyrights, trade
               secret rights, and all other rights throughout the world
               (collectively, "Proprietary Rights") in connection therewith. In
               furtherance of the foregoing, Executive hereby agrees that
               immediately upon the termination of Executive's employment,
               Executive will deliver all Company Materials and any copies
               thereof then in Executive's possession to the Company. Executive
               further agrees that any property situated on the Company's
               premises and owned by the Company or any of the Company Parties,
               including disks and other storage media, filing cabinets or other
               work areas, is subject to inspection by Company personnel at any
               time with or without notice. Finally, Executive understands and
               agrees that the Company maintains an electronic mail system and
               related facilities for the purpose of business communications,
               and that the Company retains the right to review any and all
               electronic mail communications, with or without notice, at any
               time.

          (e)  Assignment of Inventions. Executive hereby assigns to the Company
               all of his right, title and interest in and to any and all
               Inventions (and all Proprietary Rights with respect thereto),
               whether or not patentable or registrable under copyright or
               similar statutes, made or conceived or reduced to practice or
               learned by Executive, either alone or jointly with others, (i)
               during the course of the performance of services for the Company,
               (ii) relating to the business of the Company or any customer of
               or supplier to the Company or any of the products or services
               being developed, manufactured or sold by the Company or which
               reasonably may be used in proximate relation therewith or (iii)
               which results from the use of premises or personal property
               (whether tangible or intangible) owned, leased or contracted for
               by the Company. EXECUTIVE UNDERSTANDS, AGREES AND IS HEREBY
               NOTIFIED THAT THIS SECTION 7.01(e) SHALL NOT APPLY TO ANY
               INVENTION FOR WHICH NO EQUIPMENT, SUPPLIES, FACILITIES,
               CONFIDENTIAL INFORMATION OR TRADE SECRET INFORMATION OF THE
               COMPANY WAS USED AND WHICH WAS DEVELOPED ENTIRELY ON THE
               EXECUTIVE'S OWN TIME UNLESS (i) THE INVENTION RELATES (I) TO THE
               BUSINESS OF THE COMPANY, OR (II) TO THE COMPANY'S ACTUAL OR
               DEMONSTRABLY ANTICIPATED RESEARCH OR DEVELOPMENT, OR (ii) THE
               INVENTION RESULTS FROM ANY WORK PERFORMED BY EXECUTIVE FOR THE
               COMPANY, OR OTHERWISE AS SET FORTH IN THE PRECEDING SENTENCE.
               Inventions assigned to the Company by this paragraph 7.01(e) are
               hereinafter referred to as "Company Inventions." Executive
               acknowledges that all original works of authorship which are made
               by Executive (solely or jointly with others) during the course of
               the performance of services for the Company and which are
               protectable by

                                      -14-
<PAGE>

               copyright are "works made for hire," as that term is defined in
               the United States Copyright Act (17 U.S.C., Section 101).

          (f)  Assistance in Enforcement of Proprietary Rights. Executive will
               assist the Company in every proper way to obtain, renew, restore
               and from time to time enforce United States and foreign
               Proprietary Rights relating to Company Inventions in any and all
               countries. To that end Executive will execute, verify and deliver
               such documents and perform such other acts (including appearances
               as a witness) as the Company may reasonably request for use in
               applying for, obtaining, perfecting, evidencing, sustaining and
               enforcing such Proprietary Rights and the assignment thereof. In
               addition, Executive will execute, verify and deliver assignments
               of such Proprietary Rights to the Company or its designee.
               Executive's obligation to assist the Company with respect to
               Proprietary Rights relating to such Company Inventions in any and
               all countries shall continue beyond the termination of
               Executive's employment with the Company, but the Company shall
               compensate Executive at a reasonable rate after Executive's
               termination for the time actually spent by Executive at the
               Company's request in rendering such assistance. In the event the
               Company is unable for any reason, after reasonable effort, to
               secure Executive's signature on any document needed in connection
               with the actions specified in the preceding paragraph, Executive
               hereby irrevocably designates and appoints the Company and its
               duly authorized offices and agents as Executive's agent and
               attorney-in-fact, to act for and on Executive's behalf to
               execute, verify and file any such documents and to do all other
               lawfully permitted acts to further the purposes of the preceding
               paragraph thereon with the same legal force and effect as if
               executed by Executive.

          (g)  Obligation to Keep Company Informed. During the period of
               Executive's service to the Company, Executive will promptly and
               fully disclose in writing to the Company any and all Company
               Inventions that Executive has, alone or jointly with others,
               conceived, developed or reduced to practice or caused to be
               conceived, developed or reduced to practice. In addition, after
               termination of Executive's employment with the Company, Executive
               will disclose all patent applications filed by Executive within
               two (2) years after such termination.

     7.02 Non-Competition.

          (a)  Executive agrees that during his employment and for a period of
               two-years following the termination of his employment with the
               Company for any reason, he will not, directly or indirectly,
               engage in any business (whether as a compensated or uncompensated
               officer, director, consultant, advisor, partner, joint venturer,
               investor, independent contractor, employee or otherwise) which,
               to the best of Executive's knowledge, is or is about to become
               engaged in the same or similar business as the Company or that is

                                      -15-
<PAGE>

               or is about to become competitive in any respect with the
               business in which the Company or any of its subsidiaries is
               involved or plans to be involved (provided Executive is aware of
               such plans) within any place in the United States or world-wide
               where the Company or its affiliates operate and/or conduct
               business as of the Date of Termination.

          (b)  If Executive desires to engage in any business, employment or
               other activity that may violate the restrictions of Section
               7.02(a), above, Executive shall give the Board written notice of
               such proposed activity in such form and detail as is acceptable
               to the Board and request that the Board consent to such activity
               and agree that such activity will not be considered a violation
               of the restrictions of Section 7.02(a). The Board may, reasonably
               and in its sole discretion, grant or refuse to grant such consent
               and/or may condition its consent, if any, on such terms and
               conditions as the Board shall deem reasonably appropriate.

     7.03 Non-Solicitation of Executives, Employees and Consultants. For a
period of two (2) years following the Date of Termination with the Company, the
Executive shall not solicit, hire, attempt to solicit or hire, or participate
either directly or indirectly in any attempt to solicit or hire any person who
was an executive, employee or independent contractor or consultant of the
Company or any affiliate as of the Executive's Date of Termination or within the
twelve (12) month period prior thereto.

     7.04 Non-interference with Business Relations. During the Contract Term and
for a period of two (2) years following the Date of Termination, Executive shall
not, directly or indirectly, solicit, induce or attempt to solicit or induce any
client, customer, supplier, vendor licensee or other business relation of the
Company or any of its affiliates to cease doing business with the Company, or in
any way interfere with any such business relation of the Company.

     7.05 Nondisparagement. During the Contract Term and for a period of two (2)
years thereafter, Executive shall not in any form of written or oral expression,
or by act or deed, communicate any criticism, disparaging remark or condemn or
impugn the reputation of the Company or disclose or cause to be disclosed any
negative, adverse or derogatory comments or information about the Company, about
any product or service provided by the Company, or about the Company's prospects
for the future, except as may be required by legal process.

     7.06 Return of Company Property. Immediately upon termination of the
Executive's employment under this Agreement for any reason, the Executive shall
return to the Company all Company Materials and property in his possession or
control including without limitation all manuals, records, reports, notes,
contracts, lists, hardware, software, computer programs, computer systems, and
other documents or materials, of any type or nature whatsoever, regardless of
form, which relate to the Company, without retaining any copies or reproductions
thereof. Executive acknowledges and agrees that all such information, property
and equipment shall be the sole and exclusive property of the Company, as the
case may be.

                                      -16-
<PAGE>

     7.07 Remedies and Acknowledgment of Reasonableness. Executive acknowledges
that compliance with this Article VII is necessary for the protection of the
goodwill and other proprietary interests of Company, and that, after carefully
considering the extent of the restrictions upon him and the rights and remedies
conferred upon Company under this Article VII, the same are reasonable in time
and territory, are designed to eliminate competition which otherwise would be
unfair to Company, do not stifle the inherent skill and experience of Executive,
would not operate as a bar to Executive's sole means of support, are designed
fully to protect the legitimate interests of Company, and do not confer a
benefit upon Company disproportionate to the detriment to Executive. Executive
further acknowledges and agrees that in the event of a breach of this Article
VII, Company would not have an adequate remedy at law because the damages
flowing from such breach would not be readily susceptible of measurement in
monetary terms and that Company shall be entitled to injunctive relief and may
obtain a temporary order restraining any threatened breach or future breach in
addition to any other remedies which may be available at law or equity. Nothing
in this paragraph shall be deemed to limit Company's remedies at law or in
equity for breach of this Article VII or any other paragraph of this Agreement.

     7.08 Additional Remedy -- Forfeiture. In addition to the remedies set forth
in Section 7.07, in the event Executive breaches any of the restrictive
covenants in this Article VII, the Company may require Executive to refund to
the Company any severance payments or other benefits made or provided pursuant
to this Agreement or otherwise.

     7.09 Enforcement. If, at the time of enforcement of this Article VII, a
court shall hold that the duration, scope, area or activity restrictions stated
herein are unreasonable under circumstances then existing, the parties agree
that the maximum duration, scope, area or activity restrictions reasonable and
enforceable under such circumstances shall be substituted for the stated
duration, scope, area or activity restrictions.

     7.10 Survival. All of the provisions of this Article VII shall survive
Executive's termination of employment without regard to (i) the reasons for such
termination or (ii) expiration of the Contract Term. In the event of any such
violation of any section in this Article VII, the Executive further agrees that
the time periods set forth herein shall be extended by the period of such
violation.

                                  ARTICLE VIII

                                  MISCELLANEOUS

     8.01 Expenses.

          (a)  If the Executive incurs legal or other fees and expenses in an
               action to establish entitlement to benefits under this Agreement,
               and if Executive prevails in such action as to a material claim
               or issue, the Company shall reimburse the Executive for
               reasonable legal fees and related expenses associated with such
               claim or issue.

          (b)  The Company shall provide reimbursement of reasonable fees and
               expenses, as described in paragraph (a) above, to the Executive
               upon the

                                      -17-
<PAGE>

               Executive's written submission of a request for reimbursement
               together with proof that the fees and expenses were incurred both
               of which shall be in a form satisfactory to the Company.

          (c)  The Company shall reimburse legal expenses related to the
               negotiation and documentation of this Agreement between Executive
               and Company; provided, that such reimbursement shall not exceed
               $20,000.

          (d)  If the Company incurs legal or other fees in any effort to
               enforce the provisions of Article VII and the Company prevails as
               to a material claim or issue in such effort, Executive shall
               reimburse the Company for all reasonable legal fees and expenses
               incurred with respect to such claim or issue upon written request
               from the Company evidencing such fees and expenses.

     8.02 Full Settlement. The Company's obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any circumstances, including without
limitation, set-off, counterclaim, recoupment, defense or other claim, right or
action which the Company may have against the Executive or others. If the
Company fails to make any payment payable hereunder within thirty (30) days
after such amounts are due, then the Executive shall be entitled to receive
interest, compounded monthly, on the unpaid amount, at a rate equal to the
highest interest rate applicable to the Company in its borrowing of funds from
any third party during the period of nonpayment, and if no such rate is
determinable, or if higher, at a rate equal to one percent above the prime
commercial lending rate announced by Trust Company Bank, N.A. in effect from
time to time during the period of such nonpayment. In no event shall the
Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement, nor shall the amount of any payment hereunder be
reduced, except as otherwise specifically provided herein, by any compensation
earned by the Executive as a result of employment by another employer.

     8.03 Successors. This Agreement shall be binding upon and inure to the
benefit of the Executive and the Executive's estate and shall be binding on the
Company or any successor to the Company.

     8.04 Beneficiary. If the Executive dies prior to receiving all of the
amounts payable hereunder, such amounts shall be paid in a lump-sum payment to
the beneficiary designated in writing by the Executive ("Beneficiary") and if no
such Beneficiary is designated, to the Executive's estate.

     8.05 Nonalienation of Benefits. Benefits payable under this Agreement shall
not be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, executive or levy of any
kind, either voluntary or involuntary, prior to actually being received by the
Executive, and any such attempt to dispose of any right to benefits payable
hereunder shall be void.

                                      -18-
<PAGE>

     8.06 Severability. If all or any part of this Agreement is declared by any
court or governmental authority to be unlawful or invalid, such unlawfulness or
invalidity shall not serve to invalidate any portion of this Agreement not
declared to be unlawful or invalid. Any paragraph or part of a paragraph so
declared to be unlawful or invalid shall, if possible, be construed in a manner
which will give effect to the terms of such paragraph or part of a paragraph to
the fullest extent possible while remaining lawful and valid.

     8.07 Amendment and Waiver. This Agreement shall not be altered, amended or
modified except by written instrument executed by both the Company and
Executive. A waiver of any term, covenant, agreement or condition contained in
this Agreement shall not be deemed a waiver of any other term, covenant,
agreement or condition, and any waiver of any default in any such term,
covenant, agreement or condition shall not be deemed a waiver of any later
default thereof or of any other term, covenant, agreement or condition.

     8.08 Notices. All notices and other communications hereunder shall be in
writing and delivered by hand or by first class registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:

                  If to the Company:        Intermet Corporation
                                            5445 Corporate Drive, Suite 200
                                            Troy, Michigan 48098
                                            Attn: General Counsel

                  If to the Executive:      Gary F. Ruff
                                            2541 Golfcrest Drive
                                            Rochester Hills, MI 48309

                  with a copy to:           Valentine & Associates, P.C.
                                            5767 West Maple Rd., Suite 400
                                            West Bloomfield, MI 48322
                                            Attn: Victoria A. Valentine

Either party may from time to time designate a new address by notice given in
accordance with this Section. Notice and communications shall be effective when
actually received by the addressee.

     8.09 Counterpart Originals. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

     8.10 Entire Agreement. This Agreement forms the entire agreement between
the parties hereto with respect to any severance payment and with respect to the
subject matter contained in the Agreement.

     8.11 Effect on Other Agreements. This Agreement shall supersede all prior
agreements, promises and representations regarding severance or other payments
contingent upon termination of employment, including the Employment Agreement
between the Executive and the Company, dated June 1, 1999.

                                      -19-
<PAGE>

     8.12 Applicable Law. The provisions of this Agreement shall be interpreted
and construed in accordance with the laws of the state of Michigan, without
regard to its choice of law principles.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date
first above written.

INTERMET CORPORATION                             GARY F. RUFF
Company                                          Executive

By:       /s/ Jack Reed                          /s/ Gary F. Ruff
          -----------------------------------    -------------------------------
          Jack Reed                              Gary F. Ruff

Its:      Chairman of Compensation Committee
          -----------------------------------

Date:     July 23, 2003                          Date:   July 21, 2003
          ---------------------------------             ------------------------

                                      -20-
<PAGE>

                                   EXHIBIT A

                                    BY-LAWS<PAGE>
                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         This Agreement is made this 1st day of August, 2003, by and between
North Country Financial Corporation, a Michigan corporation, (the "Corporation")
and, C. James Bess (the "Employee").

         WHEREAS, the Board of Directors of the Corporation believes that the
future services of the Employee in the capacity of President and Chief Executive
Officer will be of great value to the Corporation;

         WHEREAS, the Corporation operates a wholly owned commercial banking
subsidiary known as North Country Bank & Trust Company which is engaged in the
general business of banking, hereinafter the "Bank"; and

         WHEREAS, the Bank is presently the subject of a Cease and Desist Order
issued by the Federal Deposit Insurance Corporation and the Michigan Office of
Financial and Insurance Services; and

         WHEREAS, the Employee is willing to serve in the employ of the
Corporation and the Bank on a full-time basis for the term of this Agreement.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein set forth, the parties hereto have agreed and do hereby
mutually agree as follows:

1.       Term -- Agreement to Serve

         The Corporation hereby employs for itself, the Bank and or any
         additional subsidiaries (hereinafter sometimes collectively referred to
         as the "Corporation"), the services of Employee for a period commencing
         as of the date first written above and terminating July 31, 2005 (the
         "Termination Date"), subject to the rights of earlier termination
         hereinafter set forth, to perform the duties of President and Chief
         Executive Officer for the Corporation and the Bank. The Employee hereby
         accepts such employment in consideration of the compensation and the
         other terms and conditions herein provided, and agrees to serve the
         Corporation well and faithfully and to devote his best efforts to such
         employment as long as it shall continue hereunder. During the period of
         such employment, the Employee will devote his substantial full-time
         attention -- reasonable vacations, periods of illness and the like
         excepted -- to the affairs of the Corporation.

                                       1
<PAGE>

2.       Base Salary and Fringe Benefits

         Except as otherwise provided herein, as compensation for these services
         hereunder, the Corporation will pay to Employee, in installments and on
         dates in accordance with its normal payroll, during the period of his
         employment hereunder, a base salary at the aggregate rate of thirty
         thousand dollars ($30,000) per month, subject to the right of the
         parties, by mutual agreement, to adjust such rate upward in respect of
         any future period after the date hereof, (hereinafter referred to as
         "Base Pay").

         In addition the Corporation shall:

         (a)      Pay (i) a cash retention bonus in the amount of ten thousand
                  dollars ($10,000) to Employee upon his commencement of
                  employment with the Corporation, and (ii) if, during the term
                  of this Agreement the Bank is no longer subject to any formal
                  or informal enforcement action including cease and desist
                  orders, written agreements or memorandum of understanding by
                  any federal or state banking regulatory agency, the Bank will
                  pay to Employee a cash bonus equal to one year of Employee's
                  Base Pay at such time.

         (b)      Provide six (6) weeks paid vacation annually beginning January
                  1, 2004, with three (3) weeks paid vacation during the period
                  of initial employment through December 31, 2003. Each January
                  1, Employee may, at his election, receive a cash payment for
                  any unused vacation at his then rate of Base Pay.

         (c)      Reimburse fees and expenses incurred in connection with
                  business of the Corporation or the Bank, including fees for
                  attendance at banking related conventions and similar items
                  approved by the Board of Directors.

         (d)      Provide an executive automobile and pay for the insurance,
                  maintenance and gasoline utilized by Employee.

         (e)      Provide a per diem reimbursement to Employee for each day he
                  is in Manistique, Michigan during the term of this Agreement
                  to cover Employees living expenses, in the amount of at least
                  one hundred dollars ($100) per day, not to exceed one thousand
                  dollars ($1,000) in any calendar month, subject however, to
                  upward adjustment with the consent of the Corporation which
                  shall not unreasonably be withheld, in the event Employee
                  demonstrates his reasonable ordinary living expenses,
                  including housing and meals, exceeds such per diem amount.

3.       Bonus and Options

         Subject to the rules and regulations applicable thereto, the
         Corporation shall provide for Employee's participation in any option,
         incentive employee benefit plans or compensation programs administered
         by the Corporation or the Bank or under its

                                       2
<PAGE>

         direction, including any employee bonus plans as may presently exist or
         are to be placed into effect after the date hereof.

4.       Termination of Employment

         The employment of the Employee under the terms of this Agreement shall
         cease and terminate as follows:

         (a)      Expiration of Term

                  On the Termination Date; or,

         (b)      Death

                  On the date of his death; or,

         (c)      Disability

                  Upon receipt by the Employee of written notice from the
                  Corporation that, in its opinion, based on reliable medical
                  evidence, the Employee is unable by reason of permanent
                  physical or mental disability to continue the proper
                  performance of his duties hereunder. For purposes of this
                  Employment Agreement, the Employee's "permanent disability"
                  shall be deemed to have occurred after ninety (90) consecutive
                  days, during which ninety (90) days the Employee, by reason of
                  his physical or mental disability or illness, shall have been
                  unable to discharge his duties under this Employment
                  Agreement. The date of permanent disability shall be such
                  ninetieth (90th) day. In the event either the Corporation or
                  the Employee, after receipt of notice of the Employee's
                  permanent disability from the other, dispute that the
                  Employee's permanent disability shall have occurred, the
                  Employee shall promptly submit to physical examinations by
                  three physicians in the Manistique, Michigan, area and, unless
                  two of such physicians shall issue their written statement to
                  the effect that in their opinion, based on their diagnosis,
                  the Employee is capable of resuming his employment and
                  devoting his full time and energy to discharging his duties
                  within sixty (60) days after the date of such statement, such
                  permanent disability shall be deemed to have occurred; or,

         (d)      Termination by the Corporation with Cause

                  For Cause at any time by action of the Board. For purposes
                  hereof, the term "Cause" shall mean removal by order of a
                  regulatory agency having jurisdiction over the Corporation or
                  the Bank, or the Employee's willful and repeated failure to
                  perform his duties under this Employment Agreement, which
                  failure has not been cured within thirty (30) days after the
                  Corporation gives notice thereof to the Employee; or,

                                       3
<PAGE>

         (e)      Termination by Employee's Resignation without Good Reason.

                  The Employee may terminate his employment at any time by
                  resignation without Good Reason.

         (f)      Termination by the Corporation without Cause

                  At the election of the Corporation, at any time during the
                  term of this Agreement without cause.

         (g)      Termination Other Than for Cause; Resignation by the Employee
                  for Good Reason.

                  If the Company terminates the Employee's employment for any
                  reason other than Cause (as defined in Section 4(c)), or in
                  the event of the Employee's Resignation for Good Reason, the
                  Employee shall be entitled to receive the payments provided
                  for herein. "Resignation for Good Reason" shall mean the
                  termination of this Agreement by the Employee in the event
                  that (i) Employee is required to provide services at a work
                  location other than the Corporation's main office in
                  Manistique, Michigan, (ii) Employee's title is reduced from
                  President and CEO, or his duties under this Agreement are
                  subject to a substantial reduction, or (iii) the breach of
                  this Agreement by the Corporation, or (iv) there is any
                  reduction in the Base Pay of Employee, or a reduction in the
                  other benefits provided to the Employee by the Corporation,
                  other than an immaterial change in the benefits provided to
                  Employee resulting from changes in service providers,
                  insurance companies and similar changes affecting all
                  employees generally under the Corporation's health and welfare
                  benefit plans.

                                       4
<PAGE>

         (h)      Payments Upon Termination

                  Upon termination of employment of the Employee pursuant to
                  Section 4(b),(c),(d) or (e) above, the Employee shall be
                  entitled to receive the amount of Base Pay and Benefits
                  (including cash payment for any unused vacation) provided for
                  in Paragraphs 2 and 3 hereof through the date of his
                  termination of employment. In the event of the termination of
                  employment of Employee pursuant to Sections 4(f) or (g) above,
                  the Corporation shall pay to the Employee his Base Pay and
                  other benefits listed in Paragraphs 2 and 3 through the
                  Termination Date, and at Employee's election shall pay the
                  aggregate amount of Base Pay, any accrued bonus, and unused
                  vacation pay otherwise payable to Employee, in a single lump
                  sum at such termination of employment.

5.       Change in Control Provision.

         If during the term of this Agreement or within one (1) year following
         the Termination Date, the Corporation engages in a Change in Control
         transaction as hereinafter defined, Employee's employment hereunder
         shall automatically terminate two (2) months following the consummation
         of the Change in Control Transaction (if not earlier terminated) and
         Employee shall receive: (A) the payments provided to Employee upon a
         termination without cause as set forth in 4(f), and (B) one year of
         Employee's then Base Pay. In the event of: (X) Employee's termination
         of employment prior to the Termination Date pursuant to 4(f) or (g),
         the provisions of this paragraph 5 shall apply notwithstanding such
         earlier termination of employment, and (Y) the provisions of this
         paragraph 5 shall not apply and shall be void in the event of
         termination of employment pursuant to 4(b)(c)(d)(and(e).

         A "Change in Control" shall result if, and shall be deemed to have
         occurred on the date of, a transaction pursuant to which:

         (a)      Any person or group (as such terms are used in connection with
                  Sections 13(d) and 14(d) of the Exchange Act) becomes the
                  "beneficial owner" (as defined in Rule 13(d)(3) and 13(d)(5)
                  under the Exchange Act), directly or indirectly, of securities
                  of the Corporation representing twenty-five percent (25%) or
                  more of the combined voting power of the Corporation's then
                  outstanding securities;

         (b)      A merger, consolidation, sale of assets, reorganization, or
                  proxy contest is consummated and, as a consequence of which,
                  members of the Board in office immediately prior to such
                  transaction or event constitute less than a majority of the
                  Board thereafter;

         (c)      During any period of 24 consecutive months, individuals who at
                  the beginning of such period constitute the Board (including
                  for this purpose any new director whose election or nomination
                  for election by the Corporation's stockholders was approved by
                  a vote of at least one-half of the directors then still in
                  office who

                                       5
<PAGE>

                  were directors at the beginning of such period) cease for any
                  reason to constitute at least a majority of the Board; or

         (d)      A merger, consolidation or reorganization is consummated with
                  any other corporation pursuant to which the shareholders of
                  the Corporation immediately prior to the merger, consolidation
                  or reorganization do not immediately thereafter directly or
                  indirectly own more than fifty percent (50%) of the combined
                  voting power of the voting securities entitled to vote in the
                  election of directors of the merged, consolidated or
                  reorganized entity.

         Notwithstanding the foregoing, no trust department or designated
         fiduciary or other trustee of such trust department of the Corporation
         or a subsidiary of the Corporation, or other similar fiduciary capacity
         of the Corporation with direct voting control of the stock shall be
         treated as a person or group within the meaning of subsection (i)(a)
         hereof. Further, no profit-sharing, employee stock ownership, employee
         stock purchase and savings, employee pension, or other employee benefit
         plan of the Corporation or any of its subsidiaries, and no trustee of
         any such plan in its capacity as such trustee, shall be treated as a
         person or group within the meaning of subsection (i)(a) hereof.

6.       Internal Revenue Code Section 280G.

         In the event the payments required under this Agreement, when added
         together with any other amounts required to be included by Employee
         under the provisions of the Internal Revenue Code of 1986, as amended,
         result in an "Excess Parachute Payment," as that term is defined in
         Section 280G of the Code, then the amount of the payments provided for
         in this agreement shall be increased in an amount which causes Employee
         to receive the full value of the payments and benefits provided for
         hereunder and to fully reimburse Employee for any and all excise tax to
         be imposed under Section 4999 (or any successor thereto) of the Code.

7.       Right to Other Benefits.

         Except as otherwise specified herein, nothing in this Agreement shall
         abridge, eliminate, or cause Employee to lose Employee's right or
         entitlement to any other Corporation benefit to which Employee may be
         entitled due to his status as an employee under any plan or policy of
         Corporation on such terms and conditions as are required of any
         employee under any plan or policy of Corporation. Further, nothing in
         this Agreement shall create in Employee any greater rights or
         entitlements, except as specified in this Agreement. The plans and
         policies referred to in this Paragraph 7 include, but are not limited
         to, life insurance plans, dental, disability or health insurance
         benefits, severance policies, club memberships, and accrued vacation
         pay.

                                       6
<PAGE>

8.       Confidential Information

         Employee shall not at any time, in any manner, while employed by the
         Corporation or thereafter, either directly or indirectly, except in the
         course of carrying out the Corporation's business or as previously
         authorized in writing on behalf of the Corporation, disclose or
         communicate to any person, firm, or corporation, any information of any
         kind concerning any matters affecting or relating to the Corporation's
         business or any of its data, figures, projections, estimates, customer
         lists, tax records, personnel histories, and accounting procedures of
         the Corporation, without regard to whether any or all of such
         information would otherwise be deemed confidential or material.

9        Non-Assignability

         (a)      Except as provided herein, neither party to this Agreement
                  shall have the right to assign this Agreement or any rights or
                  obligations hereunder provided that nothing herein shall
                  prevent the Employee from designating one or more members of
                  his family or a trust or trusts for the members of his family
                  as a beneficiary or beneficiaries entitled to receive payments
                  hereunder as heretofore specified.

         (b)      Except as provided above, no title to any payments which shall
                  become due and payable to the Employee, his personal
                  representative or designated beneficiary under the provisions
                  hereof, shall be vested in him or any of them until the actual
                  payment thereof is made to such person by the Corporation in
                  accordance with the provisions of this Agreement. Neither he
                  nor any of them shall have the right or power to transfer,
                  assign, anticipate or encumber any interest in any such
                  payment, prior to the actual receipt thereof from the
                  Corporation. Neither this Agreement, the Corporation nor any
                  person's rights hereunder shall be liable for the debt,
                  contract or engagement of any of them. None of them shall be
                  permitted to appoint any agent or attorney-in-fact and except
                  as provided herein, to collect or receive his share of such
                  payments or any part thereof unless permission to do so shall
                  be specifically granted by the Corporation in writing. The
                  Corporation, in the absence of such written permission, shall
                  not in any manner recognize such appointment, transfer,
                  assignment or encumbrance.

         (c)      If the Employee or any personal representative or any
                  designated beneficiary attempts to transfer, assign or
                  encumber his interest in such payments, or any part thereof,
                  prior to the payment or distribution thereof to him or her;
                  or, if any transfer or seizure thereof is attempted to be made
                  or brought through the operation of any bankruptcy or
                  insolvency law, the right of the person taking such action or
                  concerned therein or affected thereby, and who would, but for
                  this provision, be entitled to receive such payments, or any
                  part thereof, shall forthwith and ipso facto terminate, all
                  rights bestowed on any such person being hereby, on the
                  happening of any such event, expressly revoked; and the
                  Corporation shall thereafter, in its absolute discretion, at
                  such time or times as it deems proper,

                                       7
<PAGE>

                  cause such part of such person's theretofore existing share of
                  such payments to be paid to such person or persons, including
                  the Employee, of any parent, spouse or child of said person,
                  as the Corporation, in its uncontrolled discretion, shall deem
                  advisable; and the remainder of such payments, if any, may be
                  distributed by the Corporation to the person or person who
                  would have been entitled to receive the same if such person
                  had died immediately prior to said attempted transfer,
                  assignment or encumbrance, or attempted transfer or seizure by
                  operation of law.

10.      Binding Effect

         This Agreement shall be binding upon and inure to the benefit of any
         successor of the Corporation, and any such successor shall be deemed
         substituted for the Corporation under the terms of this Agreement. As
         used in this Agreement, the term "successor" shall include any person,
         firm, corporation, or other business entity which, at any time, whether
         by merger, purchase, or otherwise, acquires all or substantially all of
         the assets or business of the Corporation.

11.      Entire Agreement

         This Agreement contains the entire agreement of the parties hereto
         concerning the subject matter hereof, and cancels any and all other
         oral or written agreements or understandings between the parties with
         respect to the subject matter hereof. The Agreement may not be changed
         orally, but only by agreement in writing signed by both parties.

12.      Authorization for Acts of Corporation

         Any act, request, approval, consent or opinion of the Corporation
         hereunder shall be authorized, given or expressed by resolution of its
         Board of Directors.

13.      Arbitration.

         The parties hereto agree to arbitrate any issue, misunderstanding,
         disagreement or dispute in connection with the terms in effect in this
         Agreement before one arbitrator mutually agreeable to the parties. The
         arbitration shall be administered by the National Arbitration Forum
         ("NAF") and conducted under its rules, except as otherwise provided
         below. If either party determines that the parties have been unable to
         agree upon one arbitrator, then such party may appoint one arbitrator
         and require the other party to appoint a second arbitrator. Whereupon,
         the two appointed arbitrators shall appoint a third neutral arbitrator.
         If the arbitrators selected by the parties are unable or fail to agree
         upon the third arbitrator, the NAF shall select the third arbitrator.
         Failure by a party to either (i) accept as mutually agreeable, or (ii)
         appoint an arbitrator, within 30 days of receipt of notice of the
         appointment of an arbitrator by the other party, shall be deemed as
         acceptance of arbitration by such single arbitrator. The arbitration
         shall occur in Manistique, Michigan, or such other place as mutually
         agreed upon. The prevailing party shall be entitled to recover any and
         all costs associated with any arbitration proceeding

                                       8
<PAGE>

         (and any subsequent proceeding to enforce rights thereunder) including
         the recovery of reasonable attorneys fees. Judgment on the award
         rendered by the arbitrator(s) may be entered in any court having
         jurisdiction thereof. This arbitration agreement shall be governed by
         the Michigan Arbitration Act, MCLA Section 600.5001, et seq.
         Information may be obtained from the NAF on-line at www.arb-forum.com,
         by calling 800-474-2371 or writing to P.O. Box 50191, Minneapolis, MN,
         55405.

14.      Noncompetition and Nonsolicitation Agreement and Business Protection.

         Notwithstanding anything to the contrary contained elsewhere in this
         Agreement:

         (a)      Noncompetition Agreement and Nonsolicitation Agreement

            (i)   In view of Employee's importance to the success of the
                  Corporation, Employee and Corporation agree that the
                  Corporation would likely suffer significant harm from
                  Employee's competing with Corporation during Employee's term
                  of employment with Corporation and for some period of time
                  thereafter. Accordingly, Employee agrees that Employee shall
                  not engage in competitive activities while employed by
                  Corporation and during the Restricted Period. Employee shall
                  be deemed to engage in competitive activities if he shall,
                  without the prior written consent of the Corporation, (i)
                  within a seventy-five (75) mile radius of the main office or
                  any branch office of the Bank, render services directly or
                  indirectly, as an employee, officer, director, consultant,
                  advisor, partner or otherwise, for any organization or
                  enterprise which competes directly or indirectly with the
                  business of Corporation or any of its affiliates in providing
                  financial products or services (including, without limitation,
                  banking, insurance, or securities products or services) to
                  consumers and businesses, or (ii) directly or indirectly
                  acquires any financial or beneficial interest in (except as
                  provided in the next sentence) any organization which conducts
                  or is otherwise engaged in a business or enterprise within a
                  seventy-five (75) mile radius of the main office or any branch
                  office of the Bank, which competes directly or indirectly with
                  the business of Corporation or any of its affiliates in
                  providing financial products or services (including, without
                  limitation, banking, insurance or securities products or
                  services) to consumers and businesses. Notwithstanding the
                  preceding sentence, Employee shall not be prohibited from
                  owning less that 5 percent of any publicly traded corporation,
                  whether or not such corporation is in competition with
                  Corporation. For purposes of this Paragraph 14 the term
                  "Restricted Period" shall equal twelve months, commencing as
                  of the date of Employee's termination of employment.

            (ii)  While employed by Corporation and for a period of twelve
                  months following Employee's termination of employment with
                  Corporation, Employee agrees that Employee shall not, in any
                  manner directly (i) solicit by mail, by telephone, by personal
                  meeting, or by any other means, any customer or prospective
                  customer of Corporation to whom Employee

                                       9
<PAGE>

                  provided services, or for whom Employee transacted business,
                  or whose identity become known to Employee in connection with
                  Employee's services to Corporation (including employment with
                  or services to any predecessor or successor entities), to
                  transact business with a person or an entity other than the
                  Corporation or its affiliates or reduce or refrain from doing
                  any business with the Corporation or its affiliates or (ii)
                  interfere with or damage (or attempt to interfere with or
                  damage) any relationship between Corporation or its affiliates
                  and any such customer or prospective customer. The term
                  "solicit" as used in this Agreement means any communication of
                  any kind whatsoever, inviting, encouraging or requesting any
                  person to take or refrain from taking any action with respect
                  to the business of Corporation and its subsidiaries.

            (iii) While employed by Corporation and for a period of twelve
                  months following Employee's termination of employment with
                  Corporation, Employee agrees that Employee shall not, in any
                  manner directly solicit any person who is an employee of
                  Corporation or any of its affiliates to apply for or accept
                  employment or a business opportunity with any other person or
                  entity in which he has an ownership interest or directly or
                  indirectly receives compensation therefrom.

            (iv)  The parties agree that nothing herein shall be construed to
                  limit or negate the common law of torts or trade secrets or
                  Michigan Law where it provides broader protection than that
                  provided herein.

         (b)      Confidential Information

         Employee has obtained and may obtain confidential information
         concerning the businesses, operations, financial affairs,
         organizational and personnel matters, policies, procedures and other
         non-public matters of Corporation and its affiliates, and those of
         third-parties that is not generally disclosed to persons not employed
         by Corporation or its subsidiaries. Such information (referred to
         herein as the "Confidential Information") may have been or may be
         provided in written form or orally. Employee shall not disclose to any
         other person the Confidential Information at any time during his
         employment with Corporation or after the termination of his employment,
         provided that Employee may disclose such Confidential Information only
         to a person who is then a director, officer, employee, partner,
         attorney or agent of Corporation who, in Employee's reasonable good
         faith judgment, has a need to know the Confidential Information. At
         Employee's termination of employment, Employee shall return to the
         Corporation any and all memorandum, notes, records, papers, financial
         models, flowcharts, work papers, computer codes, software and any other
         documents relating to the operations of the business of the Corporation
         or the Bank.

         (c)      Remedies

            (i)   Employee acknowledges that a violation on Employee's part of
                  this Paragraph 14 would cause immeasurable and irreparable
                  damage to Corporation. Accordingly, Employee agrees that
                  notwithstanding Paragraph 13 hereof, Corporation shall be

                                       10
<PAGE>

                  entitled to injunctive relief in any court of competent
                  jurisdiction for any actual or threatened violation of any of
                  the provisions of this Paragraph 14, in addition to any other
                  remedies it may have at law.

            (ii)  In addition to Corporation's right to seek injunctive relief
                  as set forth in subsection (i) above of this Section 14(c) in
                  the event that Employee shall violate the terms and conditions
                  of this Paragraph 14, Corporation may: (i) make a general
                  claim for damages and (ii) terminate any payments or benefits
                  payable by Corporation, if applicable, to Employee.

15.      Confidential Information

         Employee shall not at any time, in any manner, while employed by the
         Corporation or thereafter, either directly or indirectly, except in the
         course of carrying out the Corporation's business or as previously
         authorized in writing on behalf of the Corporation, disclose or
         communicate to any person, firm, or corporation, any information of any
         kind concerning any matters affecting or relating to the Corporation's
         business or any of its data, figures, projections, estimates, customer
         lists, tax records, personnel histories, and accounting procedures of
         the Corporation, without regard to whether any or all of such
         information would otherwise be deemed confidential or material.

16.      Governing Law

         This Agreement is executed and delivered in the State of Michigan and
         is intended to be interpreted, construed and enforced in accordance
         with the laws of such State.

17.      Regulatory Approval of Agreement.

         Employee and the Corporation acknowledge and agree that: (i) certain
         approvals of state and federal banking regulatory agencies are required
         to be received by the Corporation in order to fully bind the
         Corporation to the terms hereof; and (ii) the Corporation shall submit
         this Agreement to any and all state and federal banking regulatory
         agencies with supervisory and regulatory authority over the Corporation
         and/or the Bank as soon as practicable following its execution and
         agrees to use its best efforts to obtain as promptly as practicable any
         all consents required to permit the full enforcement of the provisions
         of this Agreement, including the payment of all compensation, benefits,
         bonuses, and change in control payments of any and all types
         contemplated herein as may be required by law, regulation, enforcement
         action or otherwise; (iii) Employee agrees that this Agreement shall
         not be binding until all required regulatory approvals to which the
         Corporation is subject have been received; and (iv) Employee
         acknowledges and agrees that all terms of this Agreement may, to the
         extent permitted or required by law, applicable banking regulations, or
         by a written agreement between the Corporation (or Bank) and its (or
         their) banking regulatory agencies and not otherwise waived in writing,
         be modified, terminated, or prohibited (from enforcement) by the
         banking regulatory

                                       11
<PAGE>
         agencies having jurisdiction or oversight authority regarding the
         Corporation and the Bank.

         IN WITNESS WHEREOF, the Corporation has caused this Agreement to be
executed on its behalf by the Chairman of its Board of Directors, and the
Employee has signed this Agreement, all as of the date and year first above
written.

                                  North Country Financial Corporation

                                  By:
                                     -------------------------------------------
                                           John Lindroth
                                  Its: Chairman

                                  ----------------------------------------------
                                  C. James Bess, Employee

                                       12

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