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                                                                EXHIBIT 10.11


                              EMPLOYMENT AGREEMENT


         This AGREEMENT, made effective as of January 1, 1998 (the "Effective
Date"), by and between J&L Specialty Steel, Inc., a Pennsylvania corporation
(the "Company") and Eugene A. Salvadore (the "Employee").

                                   WITNESSETH:

         WHEREAS, the Company desires to employ Employee and Employee desires to
be employed by the Company upon the terms and conditions set forth herein,

         NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, it is hereby agreed as follows:

         1.       EMPLOYMENT.

                  (a)      Effective January 1, 1998, the Company hereby agrees
                           to employ Employee as President and Chief Executive
                           Officer of the Company, and agrees to nominate
                           Employee as a member of the Board of Directors
                           ("Board") of the Company. Employee shall report
                           directly to the Chairman of the Board and shall
                           perform such duties as are customarily performed by a
                           person holding the position of President and Chief
                           Executive Officer in businesses as that engaged in by
                           the Company and shall, in addition, render such other
                           services as may be assigned to him from time to time
                           by the Board.

                  (b)      Employee hereby agrees to be employed as President
                           and Chief Executive Officer of the Company and to
                           serve as a member of its Board. Employee agrees that
                           he shall at all times faithfully and to the best of
                           his ability, perform all of the duties that may be
                           required of him pursuant to the terms of this
                           Agreement.

                  (c)      As long as the principal offices of the Company are
                           located in Pittsburgh, Pennsylvania, the Employee's
                           principal place of employment shall be at the
                           principal offices of the Company, with appropriate
                           secretarial support, at the Company's expense.

                  (d)      The Company represents and warrants to Employee that
                           this Agreement has been duly and validly authorized
                           and executed by and on behalf of the Company in
                           accordance with its Articles of Incorporation and
                           bylaws and that it constitutes the lawful and valid
                           obligation of the Company.

                  (e)      The Employee represents and warrants to the Company
                           that he is free to accept employment hereunder and
                           that he has no prior or other obligations

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                           or commitments of any kind that would in any way
                           hinder or interfere with his acceptance of, or the
                           full performance of, such employment.


                  (f)      The letter agreement date September 28, 1995 by and
                           between Employee and the Company is hereby terminated
                           as of the Effective Date.

         2.       TERM. Unless earlier terminated in accordance with the
                  provisions of Paragraph 4 below, this Agreement shall continue
                  for an initial period beginning as of the Effective Date and
                  ending five (5) years from the Effective Date ("the Initial
                  Term"). After expiration of the Initial Term, and subject to
                  the termination provisions herein contained, this Agreement
                  will be automatically renewed for successive one (1) year
                  terms, provided neither of the parties has given written
                  notice to the other party of its or his intent not to renew at
                  least sixty (60) days prior to the respective renewal date.

         3.       COMPENSATION AND RELATED MATTERS.

                  (a)      Base Salary. During the Employee's employment
                           hereunder, the Company shall pay to the Employee an
                           annual base salary effective January 1, 1998 of
                           $400,000 and Employee shall receive such amount less
                           such deductions as are required by law or that
                           Employee may elect in accordance with Company policy
                           and procedure. For each contract year after 1998, the
                           Board shall set Employee's annual base salary prior
                           to the beginning of such year, provided that such
                           annual base salary may not be lower than the previous
                           year's annual base salary.

                           The following amounts are indicative of future base
                           salaries that Employee and the Board of Directors
                           deem may be appropriate:

                                 Effective January 1, 1999 -- $430,000
                                 Effective January 1, 2000 -- $465,000
                                 Effective January 1, 2001 -- $505,000
                                 Effective January 1, 2002 -- $550,000

                           The base salary shall be payable in equal periodic
                           installments in accordance with the Company's salary
                           practices. The base salary payments hereunder shall
                           not in any way limit or reduce any other obligation
                           of the Company hereunder, and no other compensation,
                           benefit or payment hereunder shall in any way limit
                           or reduce the obligation of the Company to pay the
                           Employee's base salary hereunder.

                  (b)      Restricted Shares. The Company shall reserve as an
                           equity performance bonus up to one hundred thousand
                           (100,000) restricted shares of the Company's common
                           stock, (the "Shares"), in accordance with the terms
                           and conditions of the Company's 1993 Stock Incentive
                           Plan, or successor plan, and pursuant to such other
                           terms and conditions as may be established by the
                           Incentive Based Compensation Committee of the


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                           Company's Board of Directors. The Company shall
                           recommend to the Incentive Based Compensation
                           Committee that shares be awarded to Employee on or
                           before the dates and in the amounts set forth below:

                                         January 1, 1998 - 30,000 shares
                                         January 1, 1999 - 30,000 shares
                                         January 1, 2000 - 40,000 shares

                  (c)      Profit Sharing. During the term of this Agreement,
                           Employee shall be designated a participant in the
                           Senior Management Incentive Plan (the "Incentive
                           Plan") at a new Incentive Award Schedule A, Position
                           Level A (100% maximum award potential) with
                           performance levels (Threshold, Targets and Maximum
                           performance levels) consistent with other performance
                           levels set forth in the Incentive Plan, as the same
                           may be amended from time to time.

                  (d)      Supplemental Retirement Plan. Employee shall be
                           deemed a participant in the Company's Executive
                           Benefit Plan whose participation began prior to May
                           1, 1992, and on the Effective Date shall be credited
                           with Years of Service under such Plan beginning on
                           January 1, 1972. Employee's supplemental benefit
                           shall be paid to him in accordance with the terms of
                           the Executive Benefit Plan or in a lump sum
                           (calculated in accordance with the terms of the
                           Executive Benefit Plan) within thirty (30) days
                           following termination of this Agreement by the
                           Company without Cause or by the Employee with Good
                           Reason.


                  (e)      Memberships. During the term of Employee's employment
                           hereunder Employee shall receive reimbursement from
                           the Company for membership and club dues of the
                           Employee at a downtown luncheon club, a health club
                           and a country club of his choice, and for such other
                           memberships and club dues as the Chairman of the
                           Board determines are reasonable and necessary for the
                           purpose of promoting and maintaining the business of
                           the Company. It is further agreed that if Employee's
                           employment under the Agreement terminates because of
                           Employee's election to retire under the provisions of
                           any of the Company's qualified or non-qualified
                           pension plans, Company shall, to the extent it has
                           the right to do so under applicable club rules and
                           membership contracts, assign to Employee (or, in the
                           case of Employee's death, to his spouse at the time
                           of his death, if any, otherwise to his heirs) such
                           existing memberships in such clubs.

                  (f)      Estate and Tax Planning. For each calendar year from
                           and including 1998 during any part of which the
                           Employee is employed under this Agreement, Employee
                           shall receive reimbursement from the Company for an
                           amount equal to the Professional Expense
                           Reimbursement for such calendar year. The
                           "Professional Expense Reimbursement" for any calendar
                           year shall be determined as follows: Determine the
                           amount equal to the lesser of (a)


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                           Employee's out-of-pocket costs on account of personal
                           legal, estate and tax planning services incurred by
                           Employee from time to time during such calendar year,
                           or (b) the amount equal to the sum of (A) $5,000
                           ("Base Amount"), and (B) any portion of the Base
                           Amounts from previous calendar years from and
                           including 1998 not used in calculating the
                           Professional Expense Reimbursement for any previous
                           calendar year.

                  (g)      Legal Fees. The Company shall reimburse Employee for
                           Employee's reasonable out-of-pocket costs on account
                           of fees and expenses of lawyers retained by Employee
                           in connection with any action, suit, arbitration or
                           proceeding between the Company and Employee in which
                           Employee is the prevailing party as determined by a
                           final non-appealable decision arising in connection
                           with this Agreement, as amended from time to time.

                  (h)      Expenses. During the term of the Employee's
                           employment hereunder, the Employee shall receive
                           reimbursement from the Company for all reasonable
                           expenses incurred by the Employee in performing
                           services hereunder, including, without limitation,
                           all expenses of travel and living expenses while away
                           from home on business at the request of or in the
                           service of the Company, provided that such expenses
                           are incurred and accounted for in accordance with the
                           standard policies and procedures established by the
                           Company for reimbursement of expenses.


                  (i)      Vacation. In addition to all holidays provided other
                           employees of the Company, Employee shall be entitled
                           to vacation in accordance with standard Corporate
                           policy.

                  (j)      Automobile. During the term of this Agreement, the
                           Company shall make available to the Employee, at his
                           request and for his use (without personal mileage
                           reimbursement), an automobile registered and owned by
                           the Corporation of a class at least comparable to the
                           car now provided to Employee by the Company.

                  (k)      Other Benefits. The Employee shall be entitled to
                           participate in the same manner as other executives of
                           the Company in such life insurance, medical, dental,
                           disability, pension and retirement plans and other
                           programs as may be approved from time to time by the
                           Company for the benefit of its executives, except any
                           other such plan or program with respect to which
                           Employee voluntarily executes a legally effective
                           waiver. Except as provided in Paragraph 3(m) hereof,
                           nothing herein shall affect the Company's right to
                           amend, modify or terminate any retirement or other
                           benefit plan at any time for any reason.

                  (l)      Gross-Up. The reimbursements and benefits provided
                           under Paragraphs 4(e), (f), (g) and (j) shall be
                           grossed-up for federal, state and local income taxes
                           actually payable thereon by Employee, such that after
                           giving effect



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                           to such taxes the Employee will retain an amount
                           equal to such pre-tax reimbursement.

                  (m)      Amendment. Despite authority to amend and terminate
                           the Incentive Plan, the 1993 Stock Incentive Plan and
                           the Executive Benefit Plan contained in those plans,
                           the Company agrees that it will not, at least until
                           December 31, 2002 (unless the Agreement, as amended,
                           is sooner terminated pursuant to Paragraph 4
                           thereof), either terminate any of those plans, or
                           amend them in any way that would reduce the benefits
                           to which the Employee would otherwise become entitled
                           thereunder without the prior written consent of
                           Employee. The Employee hereby consents to the
                           amendment of the Incentive Plan to add a new
                           Incentive Award Schedule A, Position Level A, as
                           described in Paragraph 3(c) hereof.

         4.       TERMINATION OF EMPLOYMENT.

                  This Agreement and the Employee's employment hereunder may be
                  terminated without any breach of this Agreement only under the
                  following circumstances during the term of this Agreement:

                  (a)      Termination by Employee. Employee may terminate his
                           employment with the Company for Good Reason or for
                           any other reason by giving the Company not less than
                           thirty (30) days prior written notice of the
                           termination of his employment. For purposes of this
                           Agreement, "Good Reason" shall mean any failure by
                           the Company to comply with any material provision of
                           this Agreement.

                  (b)      Death. The Employee's employment hereunder shall
                           terminate upon his death.

                  (c)      Disability. If (i) the Employee is deemed disabled
                           under the Company's Disability Benefit Plan, or any
                           successor plan in which Employee participates, and
                           the Employee shall have been absent from his duties
                           hereunder, with the approval of a physician selected
                           or approved by the Company, for a period of six (6)
                           consecutive months during the term of this Agreement,
                           and (ii) within thirty (30) days after written notice
                           of termination is given by the Company to the
                           Employee (which may occur at or after the end of such
                           six (6) month period) the Employee shall not have
                           returned to the performance of his duties hereunder
                           on a full-time basis; then the Company may terminate
                           the Employee's employment hereunder.

                  (d)      Termination by Company. The Company may immediately
                           terminate the Employee's employment hereunder for
                           Cause or for any reason other than for Cause by
                           giving Employee not less than thirty (30) days prior
                           written notice. For purposes of this Agreement,
                           "Cause" shall mean (i) the willful and continued
                           failure by Employee to substantially perform his
                           duties



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                           hereunder (other than any such failure resulting from
                           Employee's incapacity due to physical or mental
                           illness) after demand for such substantial
                           performance is delivered by Company specifically
                           identifying the manner in which the Company believes
                           Employee has not substantially performed his duties,
                           (ii) his conviction of or plea of guilty or nolo
                           contendere to a felony or other crime involving moral
                           turpitude or misappropriation of funds, (iii) the
                           willful engaging by the Employee in misconduct which
                           is materially injurious to the Company, monetarily or
                           otherwise.

                  (e)      Effect of Termination. Any termination of this
                           Agreement will automatically act as a resignation of
                           Employee from the Company's Board, effective as of
                           the date of termination.

         5.       COMPENSATION UPON TERMINATION OF EMPLOYMENT.

                  (a)      Disability. During any period that the Employee is
                           deemed disabled under the Company's Disability
                           Benefit Plan or any successor plan in which Employee
                           participates ("Disability Period"), the Employee
                           shall continue to receive his full base salary,
                           profit sharing bonuses and restricted stock awards,
                           together with the benefits and participation rights
                           stated above, at the rate then in effect for such
                           period until the expiration of the Initial Term or if
                           the Initial Term has ended, until the expiration of
                           any one year renewal periods. Payments so made to the
                           Employee during the Disability Period shall be
                           reduced by the sum of the amounts, if any, payable to
                           the Employee under any disability benefit plans of
                           the Company. After expiration of the Initial Term or
                           any one year extension periods, Employee may be
                           entitled to receive any disability benefits provided
                           by the Company as well as any other benefits payable
                           under any Company welfare, pension or benefit plans
                           in which Employee participates, but Employee shall
                           not be entitled to receive the Severance Payment (as
                           hereinafter defined).

                  (b)      Death, Termination for Cause or Termination Without
                           Good Reason. If the Employee's employment shall be
                           terminated as a result of Employee's death under
                           Paragraph 4(b) hereof or for Cause under Paragraph
                           4(d) hereof, or by Employee under Paragraph 4(a)
                           hereof for any reason other than Good Reason, the
                           Company shall pay the Employee his full base salary
                           through the date of termination at the rate in effect
                           at the time a notice of termination is given plus all
                           accrued and unpaid benefits (including all life
                           insurance, profit sharing bonus, pension, health and
                           welfare benefits in which the Employee was a
                           participant in accordance with the terms of such
                           plans) and the Company shall have no further
                           obligations whatsoever under this Agreement except as
                           expressly provided otherwise in this Agreement or
                           under any plan or benefit stated above.



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                  (c)      Termination Other Than for Cause; Termination for
                           Good Reason. If the Employee's employment is
                           terminated by the Company other than for Cause, or if
                           Employee shall terminate his employment for Good
                           Reason, then Employee shall be entitled to receive,
                           within thirty (30) days of termination, a lump sum
                           payment equal to the sum of his annualized base
                           salary in the year of termination and profit sharing
                           bonus (as calculated below) for the greater of (i)
                           the balance of the Initial Term, or (ii) for three
                           (3) years, plus all accrued and unpaid benefits
                           (including the awarding of any shares of restricted
                           stock that have not yet been awarded under Paragraph
                           3(b) hereof) that Employee would have earned or
                           accrued during such period had his employment not
                           been so terminated (including years of service and
                           participation for such period under the Executive
                           Benefit Plan) to the extent permitted by law or under
                           the terms of any qualified welfare or pension plan
                           (collectively, the "Severance Payment"). The
                           Employee's profit sharing bonus for purposes of this
                           Paragraph 5(c) shall be calculated by applying the
                           average of the two highest percentages used to
                           calculate the amounts earned by Employee under the
                           Incentive Plan in any of the five (5) immediately
                           preceding years.

                  (d)      Failure to Renew. In the event the Company elects not
                           to renew this Agreement after the Initial Term or any
                           one year extension period, the Employee may elect to
                           receive the Severance Payment, in which case he will
                           be bound by the provisions of Paragraphs 8 and 9
                           hereof. Alternatively, the Employee may elect not to
                           receive the Severance Payment, in which case he will
                           not be bound by the provisions of Paragraphs 8 and 9
                           hereof. Such election must be made no later than
                           thirty (30) days after expiration of the Initial Term
                           or any one year extension period.

                  (e)      Retirement. In no event shall Employee be entitled to
                           receive the Severance Payment if this Agreement
                           terminates as a result of Employee's election to
                           retire under the provisions of any of the Company's
                           qualified or non-qualified pension plans.

                           Notwithstanding any provision in the Executive
                           Benefit Plan to the contrary and regardless of
                           whether Employee is vested under such plan, in the
                           event of termination as described in Paragraphs 5(c)
                           or 5(d), the Employee's retirement benefit payable
                           under the Executive Benefit Plan shall be paid to the
                           Employee in a single lump-sum payment as soon as
                           practical following the occurrence of the event which
                           gives rise to the right to payment. Such lump-sum
                           payment shall be calculated in accordance with the
                           terms of the Executive Benefit Plan and this
                           Agreement and shall be in full satisfaction of any
                           right the Employee may have to payment of a
                           retirement benefit under the Executive Benefit Plan.
                           To the full extent necessary to carry out the intent
                           of the foregoing, this Agreement shall also be deemed
                           to have amended the Executive Benefit Plan, effective
                           as of the effective date of this Agreement.



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         6.       CORPORATE BOARDS AND OTHER MEMBERSHIPS.

                  As long as the Employee is President and Chief Executive
                  Officer of the Company, any corporate boards of directors on
                  which the Employee wishes to serve must have the prior
                  approval of the Chairman of the Board. At such time as the
                  Employee ceases to act as President and Chief Executive
                  Officer of the Company, the Employee may serve on additional
                  boards of directors subject to the terms of this Agreement,
                  including Paragraph 8 hereof.

         7.       NON-DISCLOSURE OF INFORMATION.

                  (a)      Employee shall not, directly or indirectly, disclose
                           to any person or entity for any reason, or use for
                           his own personal benefit, any Confidential
                           Information (as defined below) either during his
                           employment with the Company or at any time
                           thereafter.

                  (b)      Employee shall, at all times take all precautions
                           necessary to protect from loss or disclosure by him
                           of any and all documents or other information
                           containing, referring to or relating to such
                           Confidential Information. Upon termination of his
                           employment with the Company the Employee shall
                           promptly return to the Company any and all documents
                           or other tangible property containing, referring to
                           or relating to such Confidential Information, whether
                           prepared by him or others.

                  (c)      Notwithstanding any provision to the contrary in this
                           Paragraph 7, this paragraph shall not apply to
                           information which the Employee is legally required to
                           disclose or to information which must be disclosed in
                           connection with the performance of Employee's duties
                           hereunder or to information which has become part of
                           the public domain or is otherwise publicly disclosed
                           through no fault or action of the Employee. If
                           Employee has reason to believe that he may be legally
                           required to disclose Confidential Information, he
                           shall give the Company reasonable notice prior to
                           disclosure so that it may seek to protect the
                           confidentiality of such information.

                  (d)      For purposes of this Agreement "Confidential
                           Information" means any information relating in any
                           way to the business of the Company disclosed to or
                           known to the Employee as a consequence of, result of,
                           or through the Employee's employment by the Company
                           which consists of technical and non-technical
                           information about the Company's products, processes,
                           programs, strategic plans, concepts, forms, business
                           methods, data, any and all financial and accounting
                           data, marketing, customers, customer lists, and
                           services and information corresponding thereto
                           acquired by the Employee during the term of the
                           Employee's employment by the Company. Confidential
                           Information shall not include any of such items which
                           are published or are otherwise part of the public
                           domain, or freely available from trade sources or
                           otherwise.



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         8.       RESTRICTIONS ON COMPETITION.

                  In consideration of the receipt of the Severance Payment under
                  Paragraphs 5(a), (c) or (d), if applicable, hereof, or in the
                  event of Employee's retirement under Paragraph 5(e) hereof,
                  Employee covenants and agrees that for a period of three (3)
                  years (or one (1) year in the case of retirement under
                  Paragraph 5(e) hereof) following the termination of Employee's
                  employment under Paragraphs 5(a), (c), (d), if applicable, or
                  (e) hereof, Employee shall not, directly or indirectly engage
                  in, participate in or assist, as principal or agent, officer,
                  director, employee, franchisee, consultant, shareholder, or
                  otherwise, alone or in association with any other person,
                  corporation or other entity, any business whose activities,
                  services or products are directly or indirectly competitive
                  with the activities, services or products of the Company or
                  its subsidiaries anywhere in the United States; provided,
                  however, that the foregoing restriction shall not apply in the
                  case of ownership of the stock of a company which is traded
                  either on a national or a regional stock exchange or
                  over-the-counter, where Employee directly or indirectly owns
                  less than 5% of the stock of such company.

         9.       RESTRICTIONS ON SOLICITATION.

                  (a)      Employee agrees that during his employment with the
                           Company he shall not, directly or indirectly, solicit
                           the trade of or trade with, or otherwise do business
                           with, any customer or prospective customer of the
                           Company for any direct or indirect competitor of the
                           Company. In consideration of the receipt of the
                           Severance Payment under Paragraphs 5(a), (c) or (d),
                           if applicable, hereof, or in the event of Employee's
                           retirement under Paragraph 5(e) hereof, Employee
                           further agrees that for three (3) years (or one (1)
                           year in the case of retirement under Paragraph 5(e)
                           hereof) following the termination of his employment
                           under Paragraphs 5(a), (c) or (d), if applicable, or
                           (e) hereof, Employee shall not, directly or
                           indirectly, solicit the trade of or trade with, any
                           customer or prospective customer of the Company on
                           behalf or for the benefit of any direct or indirect
                           competitor of the Company, or directly or indirectly,
                           solicit or induce, or attempt to solicit or induce,
                           any employee of the Company to leave the Company for
                           any reason whatsoever or hire any employee of the
                           Company.

                  (b)      During his employment with the Company, Employee
                           shall not take any action which might divert from the
                           Company any opportunity which would be within the
                           scope of any present or contemplated future business
                           of the Company.

         10.      SURVIVAL AND ENFORCEMENT.

                  (a)      The provisions set forth in Paragraphs 7, 8 and 9 of
                           this Agreement shall survive the termination of
                           Employee's employment with the Company, or



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                           the expiration of this Agreement, as the case may be,
                           and shall continue to be binding upon Employee in
                           accordance with their respective terms.

                  (b)      Employee recognizes and acknowledges that the
                           services to be rendered by him hereunder are of a
                           special and unique character and that the
                           restrictions on Employee's activities contained in
                           this Agreement are required for the Company's
                           reasonable protection. Employee agrees that if he
                           shall breach Paragraphs 7, 8 or 9 of this Agreement,
                           the Company will be entitled, if it so elects, to
                           institute and prosecute proceedings at law or in
                           equity to obtain damages with respect to such breach
                           or to enforce the specific performance of this
                           Agreement by Employee or to enjoin Employee from
                           engaging in any activity in violation hereof.

                  (c)      Notwithstanding Paragraph 13 of this Agreement, the
                           parties hereto agree that any actions to enforce
                           Paragraphs 7, 8 or 9 of this Agreement shall be
                           brought before the Court of Common Pleas of Allegheny
                           County, and the parties hereto hereby consent to the
                           jurisdiction of such court. If any provision or
                           provisions of Paragraphs 7, 8 or 9 shall be deemed
                           invalid or unenforceable, either in whole or in part,
                           this Agreement shall be deemed amended to delete or
                           modify, as necessary, the offending provision or
                           provisions and to alter the bounds thereof in order
                           to render it valid and enforceable.

         11.      NOTICES.

                  For the purpose of this Agreement, notices, demands and all
                  other communications provided for in the Agreement shall be in
                  writing and shall be deemed to have been duly given when
                  delivered or, unless otherwise specified, mailed by United
                  States certified mail, return receipt requested, postage
                  prepaid, addressed as follows:

                  If to the Employee:       Eugene A. Salvadore
                                            233 Ash Court
                                            Wexford, PA 15090

                  If to the Company:        J&L Specialty Steel, Inc.
                                            c/o Corporate Secretary
                                            One PPG Place, 18th Floor
                                            Pittsburgh, PA 15222

                  or to such other address as any party may have furnished to
                  the others in writing in accordance herewith, except that
                  notices of change of address shall be effective only upon
                  receipt.



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         12.      KEY MAN LIFE INSURANCE.

                  During the Initial Term and any extension of the Initial Term,
                  Employee agrees to be subject to physical examinations for the
                  purpose of determining his insurability for life insurance for
                  the benefit of the Company. Employee further agrees to execute
                  and deliver any documents that may be necessary for the
                  Company to obtain any such insurance on Employee.
                  Notwithstanding the foregoing provisions, Employee understands
                  and agrees that the Company shall have no obligation to
                  purchase or maintain any key man life insurance on Employee.

         13.      ARBITRATION.

                  Except as otherwise provided in Paragraph 10 hereof, any claim
                  or controversy arising out of or relating to this Agreement or
                  any breach thereof shall be settled by arbitration, in
                  accordance with the then current rules of the American
                  Arbitration Association before a panel of three arbitrators.
                  Any such arbitration shall take place in Pittsburgh, PA.
                  Judgment upon the written award rendered by a majority of the
                  arbitrators may be entered in the court having jurisdiction
                  thereof. The written decision of a majority of the arbitrators
                  shall be valid, binding and final, and shall be a condition
                  precedent to any legal action that any party may contemplate
                  against the other, except to compel arbitration pursuant
                  hereto.

         14.      VALIDITY.

                  The invalidity or unenforceability of any provision or
                  provisions of this Agreement shall not affect the validity or
                  enforceability of any other provision of this Agreement, which
                  shall remain in full force and effect.

         15.      COUNTERPARTS.

                  This Agreement may be executed in one or more counterparts
                  each of which shall be deemed to be an original but all of
                  which together will constitute one and the same instrument.

         16.      MODIFICATION.

                  This Agreement sets forth the entire agreement and
                  understanding of the parties concerning the subject matter
                  hereof and supersedes all prior agreements, arrangements and
                  understandings between the parties hereto. No representation,
                  promise, inducement or statement of intention has been made by
                  or on behalf of either party hereto that is not set forth in
                  this Agreement. This Agreement may not be amended or modified
                  except by written instrument executed by the parties hereto.



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         17.      BINDING EFFECT ON AND ASSIGNMENT BY EMPLOYEE.

                  The terms and provisions of this Agreement shall be binding on
                  and inure to the benefit of the Employee, his heirs at law,
                  legatees, distributees, executors, administrators and other
                  legal representatives. Neither this Agreement nor any of the
                  Employee's interests, rights or obligations hereunder shall be
                  assignable by the Employee.

         18.      ATTACHMENT.

                  Except as required by law, the right to receive payments under
                  this Agreement shall not be subject to anticipation, sale,
                  pledge, encumbrance, charge, levy, or similar process or
                  assignment, and any attempt to do so shall be null and void.

         19.      BINDING EFFECT ON AND ASSIGNMENT BY COMPANY.

                  The terms and provisions of this Agreement shall inure to the
                  benefit of and be binding upon the Company and any corporate
                  or other successor of the Company which shall acquire,
                  directly or indirectly, by merger, acquisition, consolidation,
                  purchase, or otherwise, all or substantially all of the equity
                  or assets of the Company. Nothing in the Agreement shall
                  preclude the Company from consolidating or merging into or
                  with or transferring all or substantially all of its equity or
                  assets to another person or entity. The Company may freely
                  assign this Agreement and any portion of its rights and
                  interests herein. In such event, such other person or entity
                  shall assume this Agreement and all obligations of the Company
                  hereunder. Upon such consolidation, merger, or transfer of
                  equity or assets and assumption, the term the "Company" as
                  used herein, shall mean such other person and this Agreement
                  shall continue in full force and effect.

         20.      WAIVERS.

                  Any waiver by a party of any breach of this Agreement by any
                  other party shall not be construed as a continuing waiver or
                  as a consent to any subsequent breach by any other party.
                  Except as otherwise expressly set forth herein, no failure on
                  the part of any party hereto to exercise and no delay in
                  exercising any right, power or remedy hereunder shall operate
                  as a waiver thereof, nor shall any single or partial exercise
                  of any right, power or remedy hereunder preclude any other or
                  further exercise thereof or the exercise of any other right,
                  power or remedy.

         21.      HEADINGS.

                  The headings of the paragraphs of this Agreement have been
                  inserted for convenience of reference only and shall in no way
                  restrict or modify any of the terms or provisions hereof.



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         22.      GOVERNING LAW.

                  This Agreement shall be governed and construed and the legal
                  relationship of the parties determined in accordance with the
                  laws of applicable to contracts executed and to be performed
                  solely in Pennsylvania.

         IN WITNESS WHEREOF, the parties have executed the Agreement as of the
9th day of December, 1997.


EMPLOYEE                                         J&L SPECIALTY STEEL, INC.


/s/  EUGENE A. SALVADORE                        By: /s/ GUY R. DOLLE
-----------------------------                       -------------------------
Name: Eugene A. Salvadore                       Name:  Guy R. Dolle
                                                Title: Chairman





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