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                                                                   Exhibit 10.14

                       Contract Manufacturing Agreement

This Contract Manufacturing Agreement ("Agreement") is made as of February 28,
2001 (the "Effective Date") between Peak Industries, Inc., 4300 Road 18,
Longmont, CO 80504 ("Peak") and Aksys, Ltd., Two Marriott Drive, Lincolnshire,
IL 60069 ("Aksys").

                                   AGREEMENT

In consideration of the mutual covenants, promises, and conditions set forth
below, the parties, intending to be bound, agree as follows:

1)   Supply Obligations. During the Term, (a) Peak shall manufacture the
     Products in accordance with the terms and conditions set forth in this
     Agreement and the Specifications, and (b) Peak shall manufacture all of
     Aksys's requirements for Products as provided in Section 5 (a) except as
     provided below in Section 5(b).

2)   Design and Specifications.

     a)   Specifications. The "Specifications" shall mean all of the following:
          (i) the preliminary drawings and specifications for the Products will
          be mutually agreed upon and controlled in the Peak Manufacturing and
          Quality System (PMQS), and all revisions thereof delivered in writing
          by Aksys to Peak and accepted by Peak; (ii) manufacturing procedures
          and quality plans for the specific assembly in accordance with Section
          2(c); and (iii) all prototypes made by Peak and approved by Aksys for
          production.

     b)   Design Changes. Peak and Aksys will mutually review and accept changes
          in Specifications by releasing such changes in the PMQS. Peak reserves
          the right to re-quote prices in the event of Aksys changes to the
          Specifications.

     c)   Testing and Quality. Aksys and Peak will establish testing procedures
          mutually agreed upon by Peak and Aksys. Peak will evaluate and
          incorporate Aksys test procedures into its PMQS. Aksys and Peak will
          agree on Non Recurring Engineering fees to compensate appropriate
          activities. Peak agrees that Aksys's representatives may have access
          to the area of Peak's facility where Products are being manufactured
          or stored or where parts and materials are being processed or stored
          at all times during normal business hours for purposes of quality
          inspection and verification of manufacturing procedures to
          Specifications.

     d)   Quality Requirements.

          i)   Aksys shall maintain the "Design History File" and perform all
               necessary "Design Verification and Validation."

          ii)  Aksys shall be responsible for identifying any components
               requiring lot traceability. These requirements will be released
               into the PMQS as a customer specification.

          iii) Peak shall maintain an approved vendor list (AVL) which shall
               serve as a record of acceptable suppliers. Any suppliers
               selected, evaluated and approved by Aksys or their representative
               shall be noted as a customer approved supplier on the AVL. All
               suppliers selected by Peak shall be either approved or certified
               according to the PMQS.

          iv)  Peak will perform process validation where results cannot be
               verified by subsequent inspection or test. Any additional
               validation will be specified by Aksys. Aksys will provide
               specifications for and

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               will obtain any necessary regulatory approvals of printed
               materials, including labels manuals, artwork and copy.

          v)   Aksys will investigate and handle complaints from end-users. Peak
               shall cooperate with Aksys's investigations, including providing
               manufacturing-related records as they relate to the
               investigation. Aksys will reimburse Peak for all reasonable costs
               and expenses in cooperation of such investigation.

          vi)  Aksys is responsible for conducting product recalls. Peak shall
               cooperate with Aksys recall investigations, including providing
               manufacturing-related records as they relate to the recall. Peak
               and Aksys shall cooperate in jointly assessing the root cause of
               a product recall. Both parties will mutually agree as to the
               assessment of responsibility. Should Aksys be determined solely
               responsible for the recall, Aksys will reimburse Peak for all
               reasonable costs and expenses in cooperation of such recall.
               Should Peak be determined solely responsible, Aksys will not
               reimburse Peak for expenses incurred in providing replacement
               components. Aksys will bear the cost of all field service related
               activities.

          vii) Aksys is responsible for all installation and start up activities
               of the Product.

3)   Tools and Fixtures. Aksys shall be responsible for purchasing all tooling
     and fixtures that are required for production of the Products (including
     any tooling and fixtures required due to a change to the Specifications)
     and which Peak does not own as of the Effective Date. All such tooling and
     fixtures shall be held by Peak in trust for Aksys's exclusive use in
     accordance with manufacturing and testing procedures established for
     Aksys's products only. Such tooling and fixtures shall be owned by Aksys
     and identified to Peak's lenders, creditors, shareholders and other third
     parties as Aksys assets consigned to Peak. Except for normal production
     maintenance, which will be the responsibility of Peak, Aksys shall be
     exclusively responsible for the costs to repair or replace such tooling and
     fixtures. Peak and Aksys shall cooperate to obtain the best available
     pricing for all such tooling and fixtures. Peak agrees to execute and
     deliver to Aksys upon request a form UCC-1 or such other documents as Aksys
     reasonably may request to protect its interest in such assets.

4)   Forecasts.

     a)   Generally. Aksys agrees to provide Peak a six (6) month rolling
          forecast of Aksys's reasonably anticipated cumulative quantity of the
          Product for such six-month period. Aksys agrees to update the forecast
          monthly and provide it to Peak each month. Peak is authorized to
          purchase materials for the first thirteen weeks of the forecast (the
          "Rolling 13 Week Firm Forecast") after the product has officially been
          launched into the marketplace. Pre-launch purchasing quantities will
          be provided by Aksys.

     b)   Long Lead Time Items. Peak may request from Aksys written
          authorization to purchase certain long lead time items for Peak
          inventory, safety-stock and manufacturing requirements ("Special
          Inventory"). Upon termination or cancellation of this Agreement, Aksys
          shall purchase from Peak, at Peak's actual cost, any unused Special
          Inventory not to exceed the amount that has been specifically agreed
          to in writing by Aksys.

     c)   Deposit. Aksys agrees to provide a one-time cash deposit in an amount
          equal to Peak's cost for the materials required to produce the number
          of Product units specified in the initial Rolling 13 Week Firm
          Forecast. Such deposit shall be applied as a credit against each
          subsequent invoice. No deposit shall be required for any order other
          than the initial deposit described herein.

5)   Orders and Fulfillment.

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     a)   Purchase Order. Aksys shall issue written purchase order releases (PO
          releases) for its Product requirements. Peak shall accept and fulfill
          all such PO releases to the extent that the Product quantity ordered
          by Aksys for delivery in any one week period does not exceed the
          delivery forecast for such week in the Rolling 13 Week Firm Forecast
          provided by Aksys at least [thirteen (13) weeks] prior to such week;
          provided, however, that Peak shall make all reasonable efforts and
          afford first priority to production for Aksys to accept and fulfill PO
          releases that exceed such forecasts. Aksys shall provide a required
          delivery date for each PO release based on a thirty (30) day lead time
          or as otherwise mutually agreed between Aksys and Peak.

     b)   Exclusivity; Inability to Supply. During the Term and for so long as
          Peak continues to timely supply Aksys' requirements for the Products,
          Aksys shall not have the Products made by any third party; provided,
          however, that nothing in this Agreement shall be deemed to preclude
          Aksys from manufacturing the Products itself. Peak shall provide
          immediate written notice to Aksys if Peak reasonably anticipates that
          it may be unable to meet Aksys' requirements specified in the then-
          current Rolling 13 Week Firm Forecast (or thereafter), and in such
          event Aksys shall be entitled to have Products made by other third
          parties, and may thereafter allocate, in Aksys's sole discretion, its
          Product requirements among Peak and such third parties. Exclusivity is
          predicated upon Peak's maintenance of ISO 9002 certification and FDA
          registration during the term of the agreement. Loss of either of these
          certifications will result in forfeiture of exclusivity until
          certification is reestablished.

     c)   Order Cancellation. Aksys may cancel any PO release or any Rolling 13
          Week Firm Forecast, provided that in such event, Aksys shall pay Peak
          for Products and any inventory affected by the cancellation as
          follows, not to exceed to purchase price for such order: (i) 100% of
          Peak's price to Aksys for all finished Products in Peak's possession,
          (ii) 110% of the cost of all inventory in Peak's possession procured
          for Aksys confirmed purchase orders and not returnable to the vendor
          or usable for other customers, whether in raw form or work in process,
          (iii) 100% of the cost of inventory on order and not cancelable, (iv)
          any vendor cancellation charges incurred with respect to inventory
          accepted for cancellation or return by the vendor, and (v) actual
          costs to Peak of labor incurred by Peak related to work in process for
          Aksys's canceled PO releases. Upon such payment all such inventory
          and work in progress shall become the sole property of Aksys.

     d)   Order Changes. Peak will make commercially reasonable efforts to
          accommodate changes to Aksys confirmed purchase orders. Peak will move
          out purchase order dates to accommodate changes, but in no event will
          the move out exceed thirty (30) days. Purchase orders moved out
          greater than 30 days may be invoiced at full value upon completion.

     e)   Part Change Orders. Aksys agrees to purchase from Peak, at Peak's
          actual cost, any inventory purchased by Peak in reliance on Aksys's
          Rolling 13 Week Firm Forecast, which inventory is rendered obsolete
          due to a change to the Specifications. Peak shall, however, first use
          reasonable efforts to return any such inventory, and Aksys agrees to
          pay for the restocking charges and shipping if applicable.

6)   Packaging, Shipping and Delivery. Peak shall ship the Products in
     accordance with packaging and shipping instructions provided by Aksys.
     Unless otherwise specified in writing in a particular PO release, all
     Product deliveries shall be shipped F.O.B. factory to the destination
     specified by Aksys for delivery, and Peak shall insure such shipments
     against any loss or damage to the goods caused during shipment.

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7)   Payment.

     a)   Invoice. Peak will invoice at the time of shipment of Products.
          Payment is due at Peak on or within twenty (20) calendar days from the
          date that such invoice is received by Aksys.

     b)   Pricing. Peak's invoices shall reflect charges for the Products as
          specified in Exhibit B. Such charges are exclusive of taxes, shipping
          and insurance. Charges for taxes, shipping and insurance (to the
          extent applicable) shall be separately stated on Peak's invoice.

     c)   Cost Reductions. Peak agrees to seek ways to reduce the cost of
          manufacturing Products by obtaining alternate sources of materials,
          and improved assembly or test methods. Peak shall notify Aksys in
          writing not less than thirty (30) days prior to starting any such cost
          reduction efforts or implementation of any such cost reduction
          methods. Upon implementation of such methods, Peak may include in its
          invoices thereafter (for so long as such cost reduction method remains
          in effect) a line item representing one-half (1/2) of the reduction in
          actual costs that would, immediately prior to implementation of such
          cost reduction methods, have been charged to Aksys for the Products
          delivered under such invoice in accord with Section 7(b). Cost
          reductions initiated directly by Aksys, such as product re-engineering
          of materials, components or subsystems; refinement of manufacturing
          processes or procedures; identification of new vendors, volume related
          price improvements or changes in the pricing or availability of third
          party materials and services will accrue 100% to Aksys. Aksys and Peak
          will mutually agree to ownership of cost reduction activities prior to
          efforts expended in pursuit of such reductions. Such reductions will
          be reflected as a line item on Peak invoices immediately following
          implementation.

8)   Limited Product Warranties.

     a)   Basic Warranty. Peak warrants that the Products are and shall be free
          from defects in workmanship which exist or develop for a period of [90
          days] from the date of installation or 6 months from date of shipment
          thereof to Aksys or Aksys's designated distributor, whichever occurs
          first, provided that such defect developed under normal and proper use
          within the operating parameter described in the Specifications.

     b)   Specification Warranty. Peak warrants that the Products are
          manufactured to PMQS for a period of [90 days] from the date of
          installation or 6 months from date of shipment thereof to Aksys or
          Aksys's designated distributor, whichever occurs first.

     c)   Limitation of Liability. Aksys's sole and exclusive remedy in the
          event of a breach of the foregoing warranties shall be repair or, at
          Peak's sole discretion, replacement, including related shipping costs.
          Aksys will bear financial responsibility for all field service related
          warranty expenses.

9)   Intellectual Property.

     a)   As between Aksys and Peak, Aksys shall own all right, title and
          interest in and to Products and the Know-How, Improvements and Patents
          related thereto. No implied rights or licenses are granted by this
          Agreement. Aksys shall have the right to apply, in its own name and at
          its own expense, for patent, copyright or other Intellectual Property
          rights in such Know-How and Improvements and, if requested, Peak shall
          cooperate with Aksys in any reasonable manner in obtaining such
          protection. Peak agrees that all such Know-How and Improvements shall
          be owned solely by Aksys, even

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          though developed as a result of this Agreement, and regardless of
          whether conceived, created or developed by Aksys or Peak.

     b)   License. During the Term Aksys grants to Peak a non-exclusive,
          royalty-free right and license under the Patents, Know-How and
          Improvements to make the Products solely for delivery to Aksys or
          Aksys's designee.

10)  Confidentiality.

     a)   General Obligation. All information provided by one party (the
          "Disclosing Party") to the other party (the "Recipient") shall be
          governed by this Section 10.

     b)   Proprietary Information. As used in this Agreement, the term
          "Proprietary Information" shall mean all trade secrets or confidential
          or proprietary information designated as such in writing by the
          Disclosing Party, whether by letter or by the use of an appropriate
          proprietary stamp or legend, prior to or at the time any such trade
          secret or confidential or proprietary information is disclosed by the
          Disclosing Party to the Recipient. Notwithstanding the foregoing,
          information which is orally or visually disclosed to the Recipient by
          the Disclosing Party, or is disclosed in writing without an
          appropriate letter, proprietary stamp or legend, shall constitute
          Proprietary Information if the Disclosing Party, within thirty (30)
          days after such disclosure, delivers to the Recipient a written
          document or documents describing such Proprietary Information and
          referencing the place and date of such oral, visual or written
          disclosure and the names of the employees or officers of the Recipient
          to whom such disclosure was made.

     c)   Disclosure. The Recipient shall hold in confidence, and shall not
          disclose to any person outside its organization, any Proprietary
          Information for a period of five (5) years from the Effective Date,
          regardless of the termination of the Term of this Agreement. The
          Recipient shall use such Proprietary Information only for the purpose
          of developing the Product with the Disclosing Party or fulfilling its
          future contractual requirements with the Disclosing Party and shall
          not use or exploit such Proprietary Information for any other purpose
          or for its own benefit or the benefit of another without the prior
          written consent of the Disclosing Party. The Recipient shall disclose
          Proprietary Information received by it under this Agreement only to
          persons within its organization who have a need to know such
          Proprietary Information in the course of the performance of their
          duties and who are bound to protect the confidentiality of such
          Proprietary Information.

     d)   Limitation on Obligations. The obligations of the Recipient specified
          in Section 10 above shall not apply, and the Recipient shall have no
          further obligations, with respect to any Proprietary Information to
          the extent that such Proprietary Information: (i) is generally known
          to the public at the time of disclosure or becomes generally known
          through no wrongful act on the part of the Recipient; (ii) is in the
          Recipient's possession at the time of disclosure otherwise than as a
          result of Recipient's breach of any legal obligation; (iii) becomes
          known to the Recipient through disclosure by sources other than the
          Disclosing Party having the legal right to disclose such Proprietary
          Information; (iv) is independently developed by the Recipient without
          reference to or reliance upon the Proprietary Information; or (v) is
          required to be disclosed by the Recipient to comply with applicable
          laws or governmental regulations, provided that the Recipient provides
          prior written notice of such disclosure to the Disclosing Party and
          takes reasonable and lawful actions to avoid and/or minimize the
          extent of such disclosure.

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     e)   Ownership of Proprietary Information. The Recipient agrees that the
          Disclosing Party is and shall remain the exclusive owner of
          Proprietary Information and all Intellectual Property rights embodied
          therein.

     f)   Return of Documents. The Recipient shall, upon the request of the
          Disclosing Party, return to the Disclosing Party all drawings,
          documents and other tangible manifestations of Proprietary Information
          received by the Recipient pursuant to this Agreement (and all copies
          and reproductions thereof): provided that the Recipient may keep one
          archival copy of the same.

     g)   During the period beginning on the date hereof and ending on the later
          of two (2) years from such date or one (1) year after the termination
          of business relations between Peak and Aksys, Peak covenants and
          agrees that it shall not actively solicit any employee to leave the
          employment of Aksys.

11)  Indemnification.

     a)   Aksys Indemnification of Peak. Aksys shall indemnify, defend and hold
          harmless Peak from and against any Losses arising out of or relating
          to a claim brought by a third party against Peak only to the extent
          that such claim and corresponding Losses are based upon allegations
          that (i) there exists a defect in the design of any Products by Aksys
          (including a defect in any materials provided to Peak by a third party
          with respect to which materials Aksys's Specifications required to be
          purchased from such third party), (ii) would constitute a breach of
          the terms of this Agreement by Aksys, or (iii) the manufacture, sale
          or use of any Product, in accordance with the Specifications and
          operating instructions provided by Aksys, infringes a patent,
          copyright, trade secret or other proprietary right of a third party.

     b)   Indemnification Procedure. A party claiming indemnification under this
          Section 11 (an "Indemnified Party") shall provide prompt written
          notice to the other party (the "Indemnifying Party") of any and all
          notices, claims, demands, pleadings, and other facts or circumstances
          that may, in the Indemnified Party's reasonable judgment, be likely to
          result in a claim for indemnification. The Indemnified Party's failure
          to provide such prompt written notice shall reduce the indemnification
          obligation of the Indemnifying Party to the extent that such failure
          resulted in demonstrable prejudice to the Indemnifying Party. The
          Indemnified Party shall promptly tender defense of any litigation or
          other formal dispute to the Indemnifying Party, and the Indemnifying
          Party shall select counsel of its choice, reasonably acceptable to the
          Indemnified Party for such litigation or dispute. The Indemnified
          Party shall cooperate completely with the Indemnifying Party,
          including without limitation providing timely responses to all
          discovery requests and providing expert and factual witnesses as
          necessary or desirable. The Indemnifying Party shall have the sole
          authority to negotiate and settle such claims to the extent of the
          applicable indemnification obligation.

     c)   Insurance. Each party shall maintain general liability insurance in an
          amount not less than [$5,000,000] per claim. Any amounts paid under
          such insurance policies by the either party's insurer shall reduce the
          indemnification obligation of the Indemnified Party with respect to a
          particular claim.

12)  Disclaimer of Liability. Neither party shall be liable to the other party
     or to any third parties for any consequential, incidental or punitive
     damages, including, but not limited to, damage to property, for loss of
     use, loss of time, or loss of profits or income.

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13)  Limitation of Liabili1y. Peak's liability for any breach of warranty under
     Section 8 or for any manufacturing defect and Aksys sole remedy shall be
     limited to repair or at Peak's discretion replacement of Products. For any
     other claim hereunder, Peak's liability shall be limited to the proceeds
     from of any applicable insurance carried by Peak pursuant to Section 11c.

14)  Spare Parts. During the Term, and for a period five (5) years thereafter,
     Peak shall provide Aksys with all spare parts which form part of the
     Products. In the event that the production of any spare part is to be
     discontinued prior to the end of such five (5) year period, Peak shall
     notify Aksys at least one hundred and twenty (120) days before completion
     of the production of such part and Aksys may order, and Peak shall deliver,
     such quantity as Aksys shall request.

15)  Integration. This Agreement constitutes the complete and exclusive
     statement of the terms of the agreement between Peak and Aksys and
     supersedes all prior and contemporaneous agreements and undertakings of
     Peak and Aksys with respect to the subject matter hereof.

16) Term and Termination.

     a)   Initial Term and Renewal Term. Unless sooner terminated in accordance
          with Section 16(b) or 16(c): (i) the initial term of this Agreement
          shall be two (2) years; and (ii) after such initial term, the term of
          this Agreement shall automatically renew for successive one year
          periods unless either party provides written notice to the other party
          of non-renewal not less than ninety (90) days prior to the end of the
          then-current renewal term (such initial term and renewal terms
          collectively referred to herein as the "Term").

     b)   Termination For Convenience. After the first anniversary date of this
          Agreement, either Peak or Aksys may terminate the Term of this
          Agreement by giving the other party not less than one hundred and
          eighty (180) days written notice prior to the effective date of such
          termination.

     c)   Termination For Cause. The Term of this Agreement shall terminate: (i)
          automatically, if one of the parties fails to perform any material
          obligations hereunder, and such material obligations remain uncured
          sixty (60) days following the date that the other party delivers to
          the defaulting party written notice describing such performance
          failures; (unless breach is for non payment for Product in which case
          the cure is 10 days plus interest at 18%, annualized) or(ii)
          immediately upon notice by either party if the other party shall file
          for liquidation, bankruptcy, reorganization, compulsory composition,
          dissolution, or if the other party has entered into liquidation,
          bankruptcy, reorganization, compulsory composition or dissolution, or
          if the other party is generally not paying its debts as they become
          due (unless such debts are the subject of a bona fide dispute).

     d)   Effect of Termination/Survival. Upon expiration or termination of the
          Term of this Agreement, the following provisions only shall survive
          such termination or expiration.

     e)   Transition. Upon expiration or termination of the Term of this
          Agreement, and for a period of six (6) months thereafter, Peak shall
          provide reasonable cooperation and assistance (including without
          limitation knowledge transfer, materials sourcing, transfer of unused
          materials and unfinished inventory, and removal and shipping of Aksys-
          owned tooling and fixtures) to transition production of the Products
          to a third party designated by Aksys. Peak may invoice Aksys for
          actual charges incurred by Peak in such rendering such transition
          services, including Consulting Service fees billed on an hourly basis
          at Peak's standard rates.

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17)  Required Approvals. Each party shall obtain all domestic and foreign
     governmental licenses, permits and approvals required for such party's
     performance under this Agreement. Without limiting the generality of the
     foregoing: (i) Aksys shall be responsible for complying with all applicable
     foreign and U.S. federal, state and local laws, rules, regulations and
     orders and for obtaining all applicable U.S. FDA and other governmental
     agency product and design approvals and applicable foreign agency approval
     for sale of the Product; and (ii) Peak shall be responsible complying with
     all U.S. FDA and applicable state and local laws, rules, regulations and
     orders applicable to the manufacturing processes and procedures.

18)  Compliance with Laws. Each party shall comply with all domestic and foreign
     laws, rules, regulations and orders applicable to such party's performance
     under this Agreement.

19)  Assignment and Delegation. This Agreement cannot be assigned nor is the
     performance of the duties delegable by either party without the written
     consent of the other party which shall not be unreasonably withheld;
     provided, however, that this Agreement may be assigned by either party to a
     purchaser of substantially all of such party's assets relating to the
     Products, or to a successor in interest by merger or corporate
     reorganization.

20)  Governing Law. This Contract Manufacturing Agreement shall be construed to
     be between merchants and shall be governed by the laws of the State of
     Colorado.

21)  Relationship of Parties. The relationship of Aksys and Peak is that of
     buyer and seller/manufacturer, respectively, of goods. Nothing in this
     Agreement is intended to, or shall be deemed to, constitute a partnership,
     joint venture, agency, or a transfer of any intellectual property of either
     party, and neither party hereto shall be authorized to act in the name of
     the other or enter into any contract or other agreement which binds the
     other.

22)  Enforceability. If any of the provisions of this Agreement, or portions
     thereof, are found to be invalid by any court of competent jurisdiction the
     remainder of this Agreement shall nevertheless remain in full force and
     effect.

23)  Force Majeure. Neither Aksys nor Peak shall be liable for any failure to
     perform obligations under this Agreement if prevented so by a cause beyond
     their control and without the fault or negligence of the defaulting party.
     Without limiting the generality of the foregoing, such causes include acts
     of God, fires, floods, storms, epidemics, earthquakes, riots, civil
     disobedience, wars or war operations, or restraint of government.

24)  Amendment. This Agreement may not be amended except in a written amendment
     signed by each of the parties. Additional or different terms contained in
     purchase orders or order acknowledgments or similar forms shall not be
     effective unless signed by both parties with reference to this Agreement.

25)  Dispute Resolution. Consent to Arbitration and Venue. Peak and Aksys agree
     that upon the written demand of either party, whether made before or after
     the institution of any legal proceedings, but prior to the rendering of any
     judgment in that proceeding, all disputes, claims, and controversies
     between them (but excluding disputes, claims and controversies in which a
     third party is a necessary party), arising from this Agreement, including
     without limitation contract disputes and tort claims, shall be arbitrated
     in the Denver, Colorado metropolitan area, pursuant to the Commercial Rules
     of the American Arbitration Association by a panel of three arbitrators.
     All expenses of such arbitration shall be borne equally by the parties. Any
     arbitration decision shall be final and non-appealable unless the parties
     mutually agree otherwise in writing before a final decision by the panel of
     arbitrators. Any arbitration order or award may be enforceable in an

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     appropriate court as provided herein. Each party shall select one
     arbitrator and those two arbitrators shall select the third arbitrator to
     form the panel. Each party reserves the right, notwithstanding the
     foregoing, to seek equitable relief in a court of competent jurisdiction in
     any appropriate state or federal court. The prevailing party in any
     arbitration or court proceeding is entitled to be reimbursed for any and
     all reasonable attorney's fees, expert fees, and costs of suit from the
     losing party.

26)  Financial Disclosure: Peak agrees to provide Aksys with annual audited
     financial statements audited by a Certified Public Accounting Firm.
     Unaudited financial statements will be provided on a quarterly basis within
     30 days of official quarter-end close.

27)  Definitions. The following terms, when used herein with initial
     capital letters, shall have the respective meanings set forth in this
     Section 25.

     a)   "Aksys Customers" shall mean end users of the Products (including
          without limitation institutional purchasers that use the Products for
          treatment of their patients) that purchase the Products from Aksys or
          from an Aksys distributor.

     b)   "Disclosing Party" shall have the meaning stated in Section 10.

     c)   "Effective Date" shall have the meaning stated in the preamble of this
          Agreement.

     d)   "Improvements" shall mean all improvements to Aksys Patents or Know-
          How hereafter created or acquired during the term of this Agreement by
          Peak or jointly by one or more employees of Aksys and Peak, including
          without limitation advances, developments, modifications,
          enhancements, variations, revisions, adaptations, extensions or any
          element thereof, utilizing or incorporating, or based on, the Know-How
          or Patents, whether patentable or not.

     e)   "Intellectual Property" shall mean trade secrets, ideas, inventions,
          designs, developments, devices, methods or processes (whether patented
          or patentable and whether or not reduced to practice) and all patents
          and patent applications related thereto; copyrightable works and mask
          works (whether or not registered); trademarks, service marks and trade
          dress; and all registrations and applications for registration related
          thereto; and all other intellectual or industrial property rights, to
          the extent in or related to the Products.

     f)   "Know-How" shall mean the know-how, technical information and
          confidential technical data, together with all trade secrets,
          unpatented technical knowledge and inventions, confidential
          manufacturing procedures and methods, that are related to the
          Products.

     g)   "Losses" shall mean any and all damages, liabilities, costs and
          expenses (including reasonable attorneys' fees and expenses), and
          amounts paid in settlement.

     h)   "Patents" shall mean those patents and patent applications that are
          now or hereafter owned or acquired by Aksys and relate to the
          Products.

     i)   "Products" shall mean the [kidney dialysis machine] described in
          detail in the Specifications.

     j)   "Proprietary Information" shall have the meaning stated in Section 10.

     k)   "Recipient" shall have the meaning stated in Section 10.

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     l)   "Rolling 13 Week Firm Forecast" shall have the meaning stated in
          Section 4(a).

     m)   "Special Inventory" shall have the meaning stated in Section 4(b).

     n)   "Peak Manufacturing and Quality System (PMQS)" shall have the meaning
          to include the following processes and procedures and quality
          requirements.

(1)  Manufacturing Procedures: Mutually agreed upon document with procedures for
     manufacturing Product.

(2)  Quality Plans: Mutually agreed upon document outlining component quality
     plans and assembly quality plans for Product.

(3)  Document Change Request: Document approved by Peak and Aksys for changes in
     Specifications.

10
<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Contract Manufacturing
Agreement as of the Effective Date indicated above.

Peak Industries, Inc.               Aksys, Ltd.

By:    /s/ Mark Hopkins             By:    /s/ William C. Dow

Title: President & CEO              Title: President & CEO

Date:  02/28/01                     Date:  03/05/01

11
<PAGE>

                                   Exhibit A
                     Preliminary Design and Specifications

Preliminary design specifications, bill of materials and drawings will be
provided by Aksys and incorporated hereto, when available. Some preliminary
design specifications have already been hand delivered to Peak, and will be
incorporated into this exhibit as well. Exhibit A will be updated on a regular
basis and / or as appropriate until final designs are stabilized and recognized
as being complete by both parties.

12<PAGE>

                                                                   EXHIBIT 10.10

                                 RYERSON TULL
                         DIRECTORS' COMPENSATION PLAN
                         ----------------------------
             (as Amended through and including November 21, 2000)

                                   SECTION 1
                                   ---------
                                    General
                                    -------

     1.1.  Purpose and Effective Date.  The Ryerson Tull Directors' Compensation
           --------------------------
Plan (the "Plan") has been established by Ryerson Tull, Inc. (the "Company") to
provide an alternative method of compensating those directors of the Company who
do not otherwise receive compensation as employees of the Company or its
affiliates in order to aid the Company in attracting and retaining as directors
persons whose abilities, experience and judgment can contribute to the continued
progress of the Company and to facilitate the directors' ability to acquire a
proprietary interest in the Company.  The Plan shall be effective upon the
consummation of the initial public offering of Class A Common Stock, $1.00 par
value per share, of the Company, which date shall be the "Effective Date" of the
Plan as set forth herein.  On February 25, 1999, the Company merged into Inland
Steel Industries, Inc. and the Class A Common Stock was exchanged for Common
Stock, $1.00 par value per share ("Stock").

     1.2.  Participation.  Only Non-Employee Directors of the Company shall be
           -------------
eligible to participate in the Plan.  As of any applicable date, a "Non-Employee
Director" is a person who is serving as a director of the Company who is not an
employee of the Company or any affiliate of the Company as of that date.

     1.3.  Administration.  The authority to manage and control the operation
           --------------
and administration of the Plan shall be vested in a committee of the Board of
Directors of the Company (the "Board") which committee (the "Committee") shall
have such authorities as delegated to it from time to time by the Board.
Subject to the limitations of the Plan and any limitations on authorities
imposed on the Committee by the Board, the Committee shall have the sole and
complete authority to:

     (a)  interpret the Plan and to adopt, amend and rescind administrative
          guidelines and other rules and regulations relating to the Plan;

     (b)  correct any defect or omission and reconcile any inconsistency in the
          Plan or in any payment made hereunder; and

                                      -1-
<PAGE>

     (c)  to make all other determinations and take all other actions necessary
          or advisable for the implementation and administration of the Plan.

The Committee's determinations on matters within its control shall be conclusive
and binding on the Company and all other persons.  Notwithstanding the
foregoing, no member of the Committee shall act with respect to the
administration of the Plan in a manner inconsistent with the exempt status of
the Plan under Rule 16b-3 promulgated under the Securities Exchange Act of 1934,
as amended ("Rule 16b-3") as then in effect.

     1.4.  Shares Subject to the Plan.  The Stock which shall be available for
           --------------------------
distribution pursuant to the Plan shall be either authorized and unissued shares
or treasury shares (including, in the discretion of the Company, shares
purchased in the open market).  The number of shares of Stock to be distributed
pursuant to Non-Employee Directors' elections to receive shares of Stock in lieu
of Cash Retainers (as described in subsection 2.1) shall be determined in
accordance with Section 2.  The number of shares of Stock to be distributed
pursuant to Non-Employee Directors' Deferral Elections (as described in Section
3) shall be determined in accordance with Section 3.  The aggregate number of
shares of Stock which are available for issuance under the Plan shall be
161,000; provided, however, that:

     (a)  in the event of any merger, consolidation, reorganization,
          recapitalization, spinoff, stock dividend, stock split, reverse stock
          split, rights offering, exchange or other change in the corporate
          structure or capitalization of the Company affecting the Stock, the
          number and kind of shares of Stock available for awards under the Plan
          shall be equitably adjusted in such manner as the Committee shall
          determine in its sole judgment;

     (b)  in determining what adjustment, if any, is appropriate pursuant to
          paragraph (a), the Committee may rely on the advice of such experts as
          it deems appropriate, including counsel, investment bankers and the
          accountants of the Company; and

     (c)  no fractional shares shall be granted or authorized pursuant to any
          adjustment pursuant to paragraph (a), although cash payments may be
          authorized in lieu of fractional shares that may otherwise result from
          such an equitable adjustment.

                                      -2-
<PAGE>

Except to the extent otherwise determined by the Committee, any shares of Stock
issued pursuant to subsection 2.1 that terminate without vesting, shall become
available for future awards of Stock under the Plan.

     1.5.  Compliance with Applicable Laws.  Notwithstanding any other provision
           -------------------------------
of the Plan, the Company shall have no obligation to deliver any shares of Stock
under the Plan unless such delivery would comply with all applicable laws and
the applicable requirements of any securities exchange or similar entity.  Prior
to the delivery of any shares of Stock under the Plan, the Company may require a
written statement that the recipient is acquiring the shares for investment and
not for the purpose or with the intention of distributing the shares.  If the
redistribution of shares is restricted pursuant to this subsection 1.5, the
certificates representing such shares may bear a legend referring to such
restrictions.

     1.6.  Director and Shareholder Status.  The Plan will not give any person
           -------------------------------
the right to continue as a director of the Company, or any right or claim to any
benefits under the Plan unless such right or claim to any benefits has
specifically accrued under the terms of the Plan.  Participation in the Plan and
any right to accrued benefits shall not create any rights in a director (or any
other person) as a shareholder of the Company until shares of Stock are
registered in the name of the director (or such other person).

     1.7. Definition of Fair Market Value.   The "Fair Market Value" of a share
          -------------------------------
of Stock on any date shall be equal to the average of the high and low prices of
a share of Stock reported on the New York Stock Exchange Composite Transactions
for the applicable date or, if there are no such reported trades for such date,
for the last previous date for which trades were reported.

     1.8. Source of Payments.  Except for Stock actually delivered pursuant to
          ------------------
the Plan, the Plan constitutes only an unfunded, unsecured promise of the
Company to make payments or awards to directors (or other persons) or deliver
Stock in the future in accordance with the terms of the Plan.

     1.9. Nonassignment.  Neither a director's nor any other person's rights to
          -------------
payments or awards under the Plan are subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment or
garnishment by creditors of the director.

                                      -3-
<PAGE>

     1.10. Elections.  Any notice or document required to be filed with the
           ---------
Committee under the Plan will be properly filed if delivered or mailed by
registered mail, postage prepaid, to the Committee, in care of the Company, at
the Company's principal executive offices.  The Committee may, by advance
written notice to affected persons, revise such notice procedure from time to
time.  Any notice required under the Plan may be waived by the person entitled
thereto.

                                   SECTION 2
                                   ---------
                         Payment of Retainer; Election
                     to Receive Stock in Lieu of Retainer
                     ------------------------------------

     2.1.  Payment of Retainer.  Subject to the terms and conditions of the
           -------------------
Plan, for each Award Year (as defined below), each individual who is a Non-
Employee Director during such Award Year shall be paid a retainer in an amount
determined from time to time by the Board (the "Retainer") in accordance with
and subject to the following:

     (a)  For each Award Year, a "Cash Retainer" shall be payable to each
          individual who is a Non-Employee Director during such Award Year,
          subject to the following:

          (i)     The amount of the Cash Retainer payable to a Non-Employee
                  Director for any Award Year shall be one-half of the Retainer
                  for the Award Year and shall be paid in quarterly installments
                  on the last day of each Fiscal Quarter (as defined below),
                  beginning with the last day of the Fiscal Quarter in which the
                  first day of the Award Year occurs and ending with the earlier
                  of (A) the last day of the Fiscal Quarter in which the Non-
                  Employee Director's service as a Non-Employee Director
                  terminates for any reason, or (B) the last day of the first
                  Fiscal Quarter ending after the last day of the Award Year.

          (ii)    The amount of each quarterly installment of the Cash Retainer
                  for an Award Year payable to a Non-Employee Director shall be
                  equal to the product of (A) the Cash Retainer, multiplied by
                  (B) a fraction, the numerator of which is the number of
                  months, or any portion thereof, during such Fiscal Quarter
                  during which the individual served as a Non-Employee Director,
                  and the denominator of which is twelve.

                                      -4-
<PAGE>

     (b)  For each Award Year, a "Stock Retainer" shall be payable to each
          individual who is a Non-Employee Director during such Award Year,
          subject to the following:

          (i)     The amount of the Stock Retainer payable to a Non-Employee
                  Director for an Award Year shall be equal to the product of
                  (A) one-half of the Retainer for the Award Year, multiplied by
                  (B) a fraction, the numerator of which is the number of months
                  or any portion thereof remaining in the Award Year as of the
                  Issue Date (as defined below) and denominator of which is 12.

          (ii)    The Stock Retainer payable to a Non-Employee Director for any
                  Award Year shall be paid as of the Issue Date in the form of
                  shares of Common Stock of the Company having a Fair Market
                  Value (determined as of the Issue Date) equal to the amount of
                  the Stock Retainer payable to the Non-Employee Director for
                  the Award Year, which shares shall be subject to forfeiture
                  and transfer restrictions until earned as described in this
                  paragraph (b) ("Restricted Stock").

          (iii)   The shares of Restricted Stock awarded to a Non-Employee
                  Director for an Award Year pursuant to this paragraph (b)
                  shall be earned by him or her and the restrictions on such
                  shares shall lapse in quarterly installments on the last day
                  of each Fiscal Quarter, beginning with the last day of the
                  Fiscal Quarter in which the first day of the Award Year occurs
                  and ending with the earlier of (A) the last day of the Fiscal
                  Quarter in which the Non-Employee Director's service as a Non-
                  Employee Director terminates for any reason, or (B) the last
                  day of the first Fiscal Quarter ending after the last day of
                  the Award Year.  Any shares of Restricted Stock which are not
                  earned by a Non-Employee Director as of the last day of the
                  Fiscal Quarter in which his or her service as a Non-Employee
                  Director terminates shall be forfeited.

          (iv)    The number of shares of Restricted Stock for any Award Year
                  which are earned by a Non-

                                      -5-
<PAGE>

                  Employee Director for any Fiscal Quarter shall be equal to the
                  product of (A) the total number of shares of Restricted Stock
                  awarded to him or her for the Award Year, multiplied by (B) a
                  fraction, the numerator of which is the number of months, or
                  any portion thereof, during such Fiscal Quarter during which
                  the individual served as a Non-Employee Director, and the
                  denominator of which is twelve. In the event that this
                  subparagraph (iv) results in a fractional share of Restricted
                  Stock being earned as of the last day of a Fiscal Quarter, the
                  Fair Market Value of any such fractional share shall be paid
                  in cash as soon as practicable after the last day of the
                  Fiscal Quarter.

For purposes of the Plan:

     (1)  The term "Fiscal Quarter" shall mean each calendar quarter ending
          after the regular annual meeting of shareholders of the Company (an
          "Annual Meeting") occurring in 1997.

     (2)  The term "Award Year" shall mean the 12-consecutive-month period
          commencing as of the first day of the first calendar month following
          the date of the Annual Meeting occurring in 1997 and each 12-
          consecutive-month period commencing as of the first day of the first
          calendar month following each Annual Meeting thereafter.

     (3)  The term "Issue Date" shall mean (A) in the case of an individual who
          was a Non-Employee as of the first day of the Award Year, the first
          day of the Award Year, or (B) in the case of an individual who becomes
          a Non-Employee Director during the Award Year but after the first day
          thereof, the first day of the month coincident with or next following
          the date on which such individual first becomes a Non-Employee
          Director.

Notwithstanding the foregoing, the Board, in its sole discretion, may determine
that an Award Year of less than 12 months is appropriate, in which case, the
amount of the Retainer for such Award Year and the period over which such
Retainer is paid or earned shall be equitably adjusted as determined by the
Board.

                                      -6-
<PAGE>

     2.2.  Election to Receive Stock.  Subject to the terms and conditions of
           -------------------------
the Plan, each Non-Employee Director may elect to forego receipt of all or any
portion of the Cash Retainer otherwise payable to him or her following the
Effective Date and instead to receive whole shares of Stock of equivalent value
to the Retainer so foregone (determined in accordance with subsection 2.4).  A
Non-Employee Director's election under this subsection 2.2 to have all or any
portion of his or her Cash Retainer paid in shares of Stock shall be valid only
if it is in writing, signed by the Non-Employee Director, and filed with the
Committee in accordance with uniform and nondiscriminatory rules adopted by the
Committee.

     2.3.  Revocation of Election to Receive Stock.  Once effective, a Non-
           ---------------------------------------
Employee Director's election pursuant to subsection 2.2 to receive Stock in lieu
of his or her Cash Retainer shall remain in effect for successive calendar years
until it is revised or revoked.  Any such revision or revocation shall be in
writing, signed by the Non-Employee Director and filed with the Committee and
shall be effective for the calendar year next following the date on which it is
received by the Committee, or such later date specified in such notice.

     2.4.  Equivalent Amount of Stock.  The number of whole shares of Stock to
           --------------------------
be distributed to any Non-Employee Director by reason of his or her election
pursuant to subsection 2.2 to receive Stock in lieu of his or her Cash Retainer
shall be equal to:

     (a)  the dollar amount of the Cash Retainer which the Non-Employee Director
          has elected to have paid to him or her in shares of Stock;

          DIVIDED BY

     (b)  the Fair Market Value of a share of Stock as of the date on which such
          Cash Retainer (or portion thereof) would otherwise have been payable
          to the Non-Employee Director.

The Fair Market Value of any fractional share shall be paid to the Non-Employee
Director in cash.

                                   SECTION 3
                                   ---------
                              Deferral Elections
                              ------------------

     3.1.  Deferrals.  Subject to the terms and conditions of the Plan, each
           ---------
Non-Employee Director may elect to defer the receipt

                                      -7-
<PAGE>

of all or any portion of the Retainer and Eligible Fees (as defined below)
otherwise payable to or, in the case of the Stock Retainer, earned by him or
her, for periods on or after the Effective Date. A Non-Employee Director may
elect the deferral described in the preceding sentence by filing a written
"Deferral Election" with the Committee in accordance with uniform and
nondiscriminatory rules adopted by the Committee. A Non-Employee Director's
Deferral Election shall specify the portion of his or her Retainer and Eligible
Fees (including any portion of his or her Stock Retainer or any portion of his
or her Cash Retainer that he or she has elected to receive in Stock pursuant to
subsection 2.2) to be deferred and the future date as of which distribution of
the deferred amounts is to be made in accordance with the terms and conditions
of the Plan (the "Distribution Date"). If no Distribution Date is specified in a
Non-Employee Director's Deferral Election, the Distribution Date shall be deemed
to be the first business day in January of the year following the date on which
the Non-Employee Director ceases to be a director of the Company for any reason.
A Non-Employee Director's Deferral Election shall be effective with respect to
the portion of his or her Retainer and Eligible Fees otherwise payable to or, in
the case of the Stock Retainer, earned by him or her for services rendered after
the last day of the calendar year in which such election is filed with the
Committee; provided, however, that:

     (a)  a Deferral Election which is filed within 30 days of the date on which
          a director first becomes a Non-Employee Director shall be effective
          with respect to all Eligible Fees and Retainer otherwise payable to
          or, in the case of the Stock Retainer, earned by him or her after the
          date of the Deferral Election; and

     (b)  by notice filed with the Committee in accordance with uniform and
          nondiscriminatory rules established by it, a Non-Employee Director may
          terminate or modify any Deferral Election as to his or her Retainer
          and Eligible Fees payable to or, with respect to the Stock Retainer,
          earned by him or her for services rendered after the last day of the
          calendar year in which such notice is filed with the Committee;
          provided, however, that no modification may be made to the
          Distribution Date unless the Non-Employee Director shall file such
          notice with the Committee at least one year prior to the Distribution
          Date.

                                      -8-
<PAGE>

Notwithstanding the provisions of paragraph (b) next above, the Committee may,
in its sole discretion, after considering all of the pertinent facts and
circumstances, approve a change to the Distribution Date which is requested by a
Non-Employee Director less than one year prior thereto.  For purposes of the
Plan, the term "Eligible Fees" means the meeting fees, committee fees and
committee chair fees (and does not include any portion of the Retainer) that
would otherwise be payable to the Non-Employee Director by the Company as
established, from time to time, by the Board or any committee thereof.

     3.2.  Crediting and Adjustment of Deferred Amounts.  The amount of any
           --------------------------------------------
Retainer and Eligible Fees deferred pursuant to subsection 3.1 ("Deferred
Compensation") shall be credited to a bookkeeping account maintained by the
Company in the name of the Non-Employee Director (the "Deferred Compensation
Account"), which account shall consist of two subaccounts, the "Company Stock
Subaccount" and the "Cash Subaccount."  The amount, if any, of the Stock
Retainer or the Cash Retainer that the Non-Employee Director has elected to
receive in Stock pursuant to subsection 2.2 and with respect to which he or she
has filed a Deferral Election pursuant to subsection 3.1 shall be credited to
his or her Company Stock Subaccount.  Any other Deferred Compensation shall be
credited to his or her Cash Subaccount.  A Non-Employee Director's Deferred
Compensation Account shall be adjusted as follows:

     (a)  As of the first day of each calendar quarter (which dates are referred
          to herein as "Accounting Dates"), the Non-Employee Director's Cash
          Subaccount shall be adjusted as follows:

          (i)   first, the amount of any distributions made since the last
                -----
                preceding Accounting Date and attributable to the Cash
                Subaccount shall be charged to the Cash Subaccount;

          (ii)  next, the balance of the Cash Subaccount after adjustment in
                ----
                accordance with subparagraph (i) next above shall be credited
                with interest since the last preceding Accounting Date computed
                at the prime rate as reported by The First National Bank of
                Chicago (or its successor) for such date or, if such date is not
                a business day, for the next preceding business day;

                                      -9-
<PAGE>

          (iii) finally, after adjustment in accordance with the foregoing
                -------
                provisions of this paragraph (a), the Cash Subaccount shall be
                credited with the portion of the Deferred Compensation otherwise
                payable to the Non-Employee Director since the last preceding
                Accounting Date which is to be credited to the Cash Subaccount.

     (b)  The Non-Employee Director's Company Stock Subaccount shall be adjusted
          as follows:

          (i)   as of any date on or after the Effective Date on which any
                portion of a Non-Employee Director's Retainer would have been
                payable to the Non-Employee Director in Stock but for his or her
                Deferral Election, the Company Stock Subaccount shall be
                credited with a number of "Stock Units" equal to the number of
                shares of Stock (including any fractional shares) to which he or
                she would have been entitled pursuant to Section 2;

          (ii)  as of the date on which shares of Stock are distributed to the
                Non-Employee Director in accordance with subsection 3.3 below,
                an equal number of Stock Units will be subtracted from the
                Company Stock Subaccount; and

          (iii) as of the record date for any dividend paid on Stock, the
                Company Stock Subaccount shall be credited with that number of
                additional Stock Units which is equal to the number obtained by
                multiplying the number of Stock Units then credited to the
                Company Stock Subaccount by the amount of the cash dividend or
                the fair market value (as determined by the Board) of any
                dividend in kind payable on a share of Stock, and dividing that
                product by the then Fair Market Value of a share of Stock.

          In the event of any merger, consolidation, reorganization,
          recapitalization, spinoff, stock split, reverse stock split, rights
          offering, exchange or other change in the corporate structure or
          capitalization of the Company affecting the Stock, each Non-Employee
          Director's Company Stock Subaccount shall be equitably adjusted in
          such manner as the Committee shall determine in its sole judgment.

                                      -10-
<PAGE>

     3.3.  Payment of Deferred Compensation Account.  Except as otherwise
           ----------------------------------------
provided in this subsection 3.3 or subsection 3.4, the balances credited to the
Cash Subaccount and Company Stock Subaccount of a Non-Employee Director's
Deferred Compensation Account shall each be payable to the Non-Employee Director
in a lump sum or quarterly installments (over a period not exceeding ten years)
as elected by the Non-Employee Director in his or her Deferral Election;
provided, however, that if no distribution form was elected by the Non-Employee
Director in his or her Deferral Election, payment shall be made in a lump sum.
Installment distributions shall commence as of the first day of the first
calendar quarter after the Distribution Date and shall continue as of the first
day of each calendar quarter thereafter for the applicable period.
Notwithstanding the foregoing, a Non-Employee Director, by filing a notice with
the Committee at least one year prior to the Distribution Date, may elect to
change the number of payments to a single payment or to any number of quarterly
payments not in excess of forty.  Each installment payment shall include a cash
portion, if applicable, and a Stock portion, if applicable, as follows:

     (a)  The cash portion to be paid as of any date determined under the
          foregoing provisions of this Section 3.3 and charged to the Cash
          Subaccount shall be equal to the balance of the Cash Subaccount
          multiplied by a fraction, the numerator of which is one and the
          denominator of which is the number of remaining payments to be made,
          including such payment.

     (b)  The Stock portion to be paid as of any date determined under the
          foregoing provisions of this Section 3.3 and charged to the Company
          Stock Subaccount shall be distributed in whole shares of Stock, the
          number of shares of which shall be determined by rounding to the next
          lower integer the product obtained by multiplying the number of Stock
          Units then credited to the Non-Employee Director's Company Stock
          Subaccount by a fraction, the numerator of which is one and the
          denominator of which is the number of remaining payments to be made,
          including such payment.  The Fair Market Value of any fractional share
          of Stock remaining after all installment Stock distributions have been
          made to the Non-Employee Director pursuant to this paragraph (b) shall
          be paid to the Non-Employee Director in cash.

                                      -11-
<PAGE>

Notwithstanding the foregoing, the Committee, in its sole discretion, may
distribute all balances in any Deferred Compensation Account to a Non-Employee
Director (or former Non-Employee Director) in a lump sum as of any date.

     3.4.  Payments in the Event of Death.  If a Non-Employee Director dies
           ------------------------------
before payment of his or her Deferred Compensation Account commences, all
amounts then credited to his or her Deferred Compensation Account shall be
distributed to his or her Beneficiary (as described below), as soon as
practicable after his or her death, in a lump sum.  If a Non-Employee Director
dies after payment of his or her Deferred Compensation Account has commenced but
before the entire balance of such account has been distributed, the remaining
balance thereof shall be distributed to his or her Beneficiary, as soon as
practicable after his or her death, in a lump sum.  Any amounts in the Cash
Subaccount shall be distributed in cash and any amounts in the Stock Subaccount
shall be distributed in whole shares of Stock determined in accordance with
paragraph 3.3(b), and the Fair Market Value of any fractional share of Stock
shall be distributed in cash.  For purposes of the Plan, the Non-Employee
Director's "Beneficiary" is the person or persons the Non-Employee Director
designates, which designation shall be in writing, signed by the Non-Employee
Director and filed with the Committee prior to the Non-Employee Director's
death.  A Beneficiary designation shall be effective when filed with the
Committee in accordance with the preceding sentence.  If more than one
Beneficiary has been designated, the balance in the Non-Employee Director's
Deferred Compensation Account shall be distributed to each such Beneficiary per
capita (with cash distributed in lieu of any fractional share of Stock). In the
absence of a Beneficiary designation or if no Beneficiary survives the Non-
Employee Director, the Beneficiary shall be the Non-Employee Director's estate.

                                  SECTION 3A
                                  ----------
                Stock Grants for Special Independent Committee
                ----------------------------------------------

     Each member of the Special Independent Committee appointed by the Board of
Directors on May 27,1998 shall be awarded 1,000 shares of stock and the chairman
of that committee shall be awarded 2,000 shares of stock, to be paid upon the
earlier of completion of the proposed merger of the Company with Inland Steel
Industries, Inc. or abandonment of the merger.

                                      -12-
<PAGE>

                                   SECTION 4
                                   ---------
                           Amendment and Termination
                           -------------------------

     While the Company expects and intends to continue the Plan, the Board
reserves the right to, at any time and in any way, amend, suspend or terminate
the Plan; provided, however, that no amendment, suspension or termination shall:

     (a)  be made without shareholder approval to the extent such approval is
          required by law, agreement or the rules of any exchange or automated
          quotation system upon which the Stock is listed or quoted;

     (b)  except as provided in subsection 3.3 (relating to lump sum payments of
          amounts held in a Non-Employee Director's Deferred Compensation
          Account) or this Section 4, materially alter or impair the rights of a
          Non-Employee Director under the Plan without the consent of the Non-
          Employee Director with respect to rights already accrued hereunder; or

     (c)  make any change that would disqualify the Plan or any other plan of
          the Company intended to be so qualified from the exemption provided by
          Rule 16b-3 under the Securities Exchange Act of 1934, as amended.

                                      -13-

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