Document:

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                                                                    Exhibit 10.6

EXECUTIVE COPY

                              EMPLOYMENT AGREEMENT

         This Agreement is made as of August 15, 2002 by and between Republic
Engineered Products LLC, a Delaware limited liability company, (the "Company")
and Joseph F. Lapinsky (the "Executive").

                                    RECITALS

         The Company wishes to hire, and Executive wishes to be employed as the
President and Chief Executive Officer (the "CEO") of the Company.

         It is therefore hereby agreed by and between the parties as follows:

         1. Employment.

            1.1 Subject to the terms and conditions of this Agreement, the
Company agrees to employ Executive during the term hereof as its President and
CEO. In this capacity, Executive shall report to the Board of Managers of the
Company (the "Board") and shall have the customary powers, responsibilities and
authorities of President and CEO of corporations of the size, type and nature of
the Company, as it exists from time to time, and as are assigned by the Board.

            1.2 Subject to the terms and conditions of this Agreement, Executive
hereby agrees to remain the President and CEO of the Company and to devote his
full business time and efforts to the performance of services, duties and
responsibilities in connection therewith, subject at all times to review and
control of the Board. During the term of his employment hereunder, Executive
also agrees to serve, if elected, as an officer and/or director of any
subsidiary of the Company, without the payment of any additional compensation
therefor.

            1.3 Nothing in this Agreement shall preclude Executive from engaging
in charitable and community affairs, from managing any passive investment (i.e.,
an investment with respect to which Executive is in no way involved with the
management or operation of the entity in which Executive has invested) made by
him in publicly traded equity securities or other property (provided that no
such investment may exceed 1% of the equity of any entity, without the prior
approval of the Board) or from serving, subject to the prior approval of the
Board, as a member of boards of directors or as a trustee of any other
corporation, association or entity, to the extent that any of the above
activities do not interfere with the performance of his duties hereunder. For
purposes of the preceding sentence, any approval by the Board required herein
shall not be unreasonably withheld.

         2. Term of Employment. Subject to an earlier termination of Executive's
employment under any other provision of this Agreement Executive's employment
under this Agreement shall commence on August 15, 2002 and extend to the close
of business on December 31, 2004 ("Term of Emp1oyment"), provided that the Term
of Employment shall be extended for an additional twelve (12) month period each
December 31 during the Term of Employment, unless either party gives written
notice to the other on or before the immediately prior September 30th that the
Term of Employment shall not be automatically extended on the following December
31st.

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         3. Compensation.

            3.1 Salary. During Executive's employment under the terms of this
Agreement, the Company shall pay Executive a base salary ("Base Salary") at the
rate of not less than Five Hundred and Seventy-Five Thousand Dollars ($575,000)
per annum. Base Salary shall be payable in accordance with the ordinary payroll
practices of the Company. During the Term of Employment, the Board shall, in
good faith, review and, if determined by the Board to be appropriate, increase
Executive's salary at least annually in accordance with the Company's customary
procedures and practices regarding the salaries of senior executives, which
procedures and practices, for example, will include a review of the performance
of the Company and Executive, and any increase in the cost of living during the
relevant period. Increases in the rate of salary, once granted shall not be
subject to revocation or decrease thereafter.

            3.2 Annual Bonus. Executive shall be eligible to receive an annual
bonus (the "Annual Bonus"). Annual Bonus amounts payable to Executive shall be
determined in accordance with the Company's short term incentive compensation
policy or plan for senior executive officers; provided, however, that the annual
bonus for Executive shall not be less than $150,000.

            3.3 Incentive Compensation. Executive shall receive an equity
appreciation interest with respect to 4.5% of the Company's equity, fully
diluted as of the Effective Date. The vesting schedule of such grant is as
follows: one and one half per cent (1.5%) of the appreciation interest
immediately vests upon the Effective Date, and one percent (1%) of the
appreciation interest shall vest on each of the first three anniversaries of the
Effective Date. All unvested portions of the appreciation interest shall vest
upon a "Transaction" which is defined hereunder as (a) an initial public
offering of the Company or (b)(i) the sale of at least 65% of the membership
interests in the Company or (ii) substantially all its assets, in either case,
to a person, group of persons, entity or group of entities that are not
affiliated with KPS Special Situations Fund, L.P. and Hunt Investment Group,
L.P. ("KPS/Hunt") provided that Executive is employed by the Company on such
date. Should Executive's employment hereunder terminate prior to a Transaction
for any reason other than Cause (as defined below), the vested portion of the
appreciation interest shall remain outstanding until the earlier of: one year
from the date of termination and a Transaction. The value of the appreciation
interest shall be fixed on the date of the Transaction and shall be paid out in
a tax effective manner, pro rata with KPS/Hunt. The terms of the grant shall be
subject to a plan that will contain such additional terms as are not
inconsistent with this provision.

         4. Employee Benefits.

            4.1 Employee Welfare Benefit Plans and Practices. The Company shall
provide Executive while emp1oyed hereunder with coverage under all welfare
benefit programs, plans and practices (commensurate with his position in the
Company and to the extent permitted under any employee benefit plan) in
accordance with the terms thereof which the Company makes available to its
senior executives.

            4.2 Vacation. Executive shall be entitled to twenty (20) business
days paid vacation each calendar year, which shall be taken at such times as are
consistent with Executive's

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responsibilities hereunder. Any vacation days not taken by March 31 of the
following year, unless approved by the Board, shall be forfeited without pay.

            4.3 Additional Perquisites. During Executive's employment hereunder,
and with respect to clauses (i) and (iv) subject only to Executive's
insurability at a reasonable cost to the Company, the Company shall provide
Executive with (i) term life insurance in an amount equal to four (4) times Base
Salary; (ii) payment for initiation fees at a social, dining, athletic or
country club that the Board has approved for use by Executive for priority
business entertainment purposes; (iii) the right to participate in the 401(k)
plan; (iv) long-term disability coverage providing a monthly benefit of
Twenty-Two Thousand Five Hundred Dollars ($22,500); (v) a one-thousand dollar
($1,000) annual allowance for tax return preparation expenses; (vi) a one-time
one-thousand dollar ($1,000) allowance for legal fees incurred in reviewing this
Agreement; and (vii) a two year renewable automobile lease. Executive shall
provide documentation of expenses under items (v) and (vi) as requested by
Company. With respect to the benefits set forth in clauses (i) and (iv), to the
extent that any insurance company shall require Executive to have physical
examinations or submit health information in order for the Company to procure or
maintain coverage for Executive, Executive shall comply or the Company shall be
relieved of its obligation to provide such benefits.

         5. Expenses. Subject to prevailing Company policy or such guidelines as
may be established by the Board, the Company will reimburse Executive for all
reasonable expenses incurred by Executive in carrying out his duties.

         6. Termination of Employment. The Company or Executive may terminate
Executive's employment at any time for any reason by written notice.

            6.1 Termination Not for Cause or for Good Reason.

         (a)    If Executive's employment is terminated (i) by the Company for
any reason other than Cause (as defined in Section 6.2(b) hereof), Disability
(as defined in Section 6.3 hereof) or death or (ii) by Executive for Good Reason
(as defined in Section 6.1(b) hereof), the Company shall continue to pay
Executive's Base Salary for the remainder of the Term of Employment, with such
payments to be made in accordance with the terms of Section 3.1. In addition,
Executive shall, during the period that he continues to be compensated under
this Agreement, continue participation and benefits under the Company's health,
dental, life insurance and long term disability plans that he is otherwise
participating in at the time his employment is terminated; provided that, if
such participation and benefits cannot be provided under the terms of the
applicable plans, the Company shall, subject only to Executive's insurability at
a reasonable cost to the Company, pay or reimburse Executive his premium costs
for substantially equivalent coverage. Further, to the extent that any insurance
company shall require Executive to have physical examinations or submit health
information to acquire or retain coverage, Executive shall comply or the Company
shall be relieved of its obligation to provide such benefits. Notwithstanding
anything to the contrary in this Agreement, Executive shall not be entitled to
payment of his Base Salary and benefits for more than thirty-six (36) months
following any termination under this Agreement.

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        (b) For purposes of this Agreement, "Good Reason" shall mean any of the
following (without Executive's express prior written consent):

            (i)   A reduction by the Company in Executive's Base Salary; or

            (ii)  A substantial diminution or material adverse change in
Executive's duties, responsibilities or reporting responsibility, unless due to
a promotion or increased responsibility; or

            (iii) Relocation of Executive's primary work site to a location more
than fifty (50) miles from the Company's headquarters in Fairlawn, Ohio;
provided, however, that a relocation of the Company's headquarters within the
State of Ohio or a relocation after which Executive's primary work site is
closer to Executive's home than it had been prior to the relocation shall not
constitute "Good Reason" hereunder.

            6.2   Voluntary Termination by Executive; Discharge for Cause.

        (a) In the event that Executive's employment is terminated (i) by the
Company for Cause, as hereinafter defined or (ii) by Executive other than for
Good Reason, Disability or death, Executive shall only be entitled to receive
(x) any Base Salary accrued but unpaid prior to such termination, (y) any earned
but unpaid bonus from a prior year under the terms of any short term incentive
compensation plan, and (z) any benefits provided under the employee benefit
programs, plans and practices referred to in Section 4.2 hereof, in accordance
with their terms. After the termination of Executive's, employment under this
Section 6.2, the obligations of the Company under this Agreement to make any
further payments, or provide any benefit specified herein, to Executive shall
thereupon cease and terminate, except any benefits that may be required by
federa1 or state law.

        (b) As used herein, the term "Cause" shall be limited to (i) willful
gross misconduct, by Executive in the performance of his duties hereunder, (ii)
willful gross neglect by Executive of his duties hereunder (other than due to
Disability, as such term is defined in Section 6.3 hereof), or repeated and
willful failure to follow reasonable instructions of the Chairman of the Board,
(iii) commission of an act of fraud or material dishonesty with respect to the
Company, (iv) any breach of the provisions of Section 11 of this Agreement by
Executive or (v) conviction or plea of guilty or nolo contendere by Executive to
any felony (or indictable offense). Termination of Executive's employment
pursuant to this Section 6.2 shall be made by delivery to Executive of written
notice, given at least 30 days prior to such Termination, from the Board
specifying the particulars of the conduct by Executive set forth in any of
clauses (i) through (v) above. Termination shall be effective on the date set
forth in the notice, unless within 30 days after receiving such notice,
Executive shall have cured Cause to the reasonable satisfaction of the Board;
provided, however, that no cure shall be possible for (A) any breach of Section
11 of this Agreement by Executive, (B) a commission of fraud or material
dishonesty or a conviction or plea of nolo contendere by Executive to any felony
(or indictable offense); and provided further that Executive may he required to
vacate Company premises prior to the effective date of termination in those
instances.

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     6.3 Disability. In the event that Executive is unable to perform his duties
under this Agreement on account of a disability which continues for one hundred
eighty (180) consecutive days or more, or for an aggregate of one hundred eighty
(180) days in any period of twelve (12) months, Company may, in its discretion,
terminate Executive's employment hereunder and Company's obligation to make
payments under Section 3 shall, except for earned but unpaid salary and bonuses
cease immediately upon such termination, or, if later, shall cease on the date
Executive becomes entitled to benefits under the Company's long-term disability
program. The Company may, in its discretion, require written confirmation from a
physician of Disability during any extended absence. For purposes of this
Agreement, "Disability," shall be defined by the terms of the Company's
long-term disability policy, or, in the absence of such policy, as a physical or
mental disability that prevents Executive from performing substantially all of
his duties under this Agreement and which is expected to be permanent. The
commencement date and expected duration of any physical or mental condition that
prevents Executive from performing his duties hereunder shall be determined by a
medical doctor selected by mutual agreement between Executive and the Company.

     6.4 Death. In the event of Executive's death during the Term of Employment
or at any time thereafter while payments are still owing to Executive under the
terms of this Agreement, all obligations of the Company to make any further
payments, other than the obligation to pay any accrued but unpaid Base Salary
and any accrued incentive compensation shall terminate upon Executive's death,
and benefits shall become payable under the Company's life and accidental death
insurance program in accordance with its terms.

     6.5 No Mitigation; Change in Control. Executive understands and agrees that
he shall not be entitled to any further notice, compensation or indemnity upon
termination of employment under this Agreement other than amounts specified in
this Section 6. Executive shall not have any obligation to seek comparable
employment following such termination or resignation. However, any payment
hereunder shall be offset by any compensation Executive earns with a new
employer or from self-employment; but no such offset shall apply to any
compensation earned by Executive if his employment with the Company is
terminated within the twelve (12) months following a Transaction (i) other than
for Cause (as defined in Section 6.2) or (ii) by Executive for Good Reason (as
defined in Section 6.1). Furthermore, all amounts owed to Executive under
Section 6.1 in the event of a termination of employment under that Section shall
be paid in a single lump sum payment, at an appropriate discount to present
value, in the event that such termination occurs within the twelve (12) months
following a Transaction, with such payment made in complete settlement of all
amounts otherwise payable to Executive under that Section in the event of such
termination.

     6.6 Executive's Duty to Provide Materials. Upon the termination of the Term
of Employment for any reason, Executive or his estate shall surrender to the
Company all correspondence, letters, files, contracts, mailing lists, customer
lists, advertising material, ledgers, supplies, equipment, checks, and all other
materials and records of any kind that are the property of the Company or any of
its subsidiaries or affiliates that may be in Executive's possession or under
his control including all copies of any of the foregoing; provided, however,
Executive shall not be required to surrender his personal rolodex, telephone
book and personal materials.

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     6.7 Certain Reduction of Payments.

     (a) Anything in this Agreement to the contrary notwithstanding, if it is
determined that any portion of the sum of (i) the amounts paid or payable to
Executive or for Executive's benefit under the Agreement (the "Agreement
Benefits") and (ii) the amount of all other payments, and the value of all other
benefits received or to be received by Executive or for Executive's benefit
(collectively, along with Agreement Benefits, referred to as "Benefits"), is
likely to result in the imposition of a tax upon Executive or his estate under
Section 4999 of the Internal Revenue Code of 1986, as amended front time to time
(the "Code"), the aggregate present value of the Agreement Benefits yet to be
paid to Executive shall be reduced (but not below zero) to the Reduced Amount.
For purposes of this Agreement, "Reduced Amount" shall be an amount expressed as
a single sum that maximizes the aggregate present value of Agreement Benefits
previously paid and yet to be paid to Executive without causing the aggregate of
any Agreement Benefits previously paid and yet to be paid to Executive to be
subject to taxation to Executive or his estate under Section 4999 of the Code.
The provisions of this subsection (a) and subsection (b) below shall be applied
in a manner that is consistent with the provisions of subsection (c) below, and
to the extent required, the provisions of subsection (c) shall supersede the
provisions of subsection (a) and subsection (b) to permit such consistency.

     (b) If, determined in a manner consistent with subsection (a) above,
Agreement Benefits in excess of the Reduced Amount are paid to Executive or for
his benefit, or the Internal Revenue Service asserts that the amount of
Agreement Benefits received by Executive or for his benefit are in excess of the
amounts not subject to tax under Section 4999 of the Code, and such assertion is
determined to have a high probability of being successful, such excess amounts
(hereinafter referred to as "Overpayment ") shall be treated for all purposes as
a loan to Executive. The amount treated as a loan, together with interest at the
applicable federal rate provided for in Section 1274(d) of the Code shall be
paid by Executive to the Company as soon as practicable following the date
Executive is notified in writing of such Overpayments. Notwithstanding the
foregoing, if on or after the time the Overpayment is made, any applicable law
or regulation forbids a loan to Executive by the Company, this provision by
shall be revised by Company counsel to be in accordance with such law or
regulation, such revision subject to Executive's consent to the revision, such
consent not to be unreasonably withheld.

     (c) In the event that payment of any Benefits would result in all or a
portion of such payment to be subject to excise tax under Section 4999 of the
Code, then Executive's payment shall be either (i) the full payment or (ii) such
lesser amount which would result in no portion of the payment being subject to
excise tax under Section 4999 of the Code, whichever of the foregoing amounts,
taking into account the applicable federal, state and local employment taxes,
income taxes, and the excise tax imposed by Section 4999 of the Code, results in
Executive's receipt, on an after-tax basis, of the greatest amount of the
payment notwithstanding that all or some portion of the payment may be taxable
under Section 4999 of the Code.

     (d) All determinations required to be made under this Amendment shall be
made by a nationally recognized accounting firm selected by the Company (the
"Accounting Firm"). The Company shall cause the Accounting Firm to provide
detailed supporting calculations of its determinations to Executive and the
Company. All fees and expenses of the Accounting Firm shall be borne equally by
Executive and the Company.

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     7.   Notices. All notices or communications hereunder shall be in writing,
addressed as follows:

          To the Company:           Corporate Controller
                                    3770 Embassy Parkway
                                    Akron, Ohio 44333-8367

          To Executive:             Joseph F. Lapinsky
                                    8309 Blue Heron Drive
                                    Massillon, Ohio 44646

Any such notice or communication shall be delivered by hand and/or by courier or
sent certified or registered mail, return receipt requested, postage prepaid,
addressed as above (or to such other address as such party may designate in a
notice duly delivered as described above), and the third business day after the
actual date of mailing shall constitute the time at which notice was given.

     8.   Separability; Legal Fees. If any provision of this Agreement shall be
declared to be invalid or unenforceable, in whole or in part, such invalidity or
unenforceability shall not affect the remaining provisions hereof which shall
remain in full force and effect. Each party shall bear the costs of any legal
fees and other fees and expenses which may be incurred in respect of enforcing
its respective rights under this Agreement.

     9.   Assignment. This contract shall be binding upon and inure to the
benefit of the heirs and representatives of Executive and the assigns and
successors of the Company, but neither this Agreement nor any rights or
obligations hereunder shall be assignable or otherwise subject to hypothecation
by Executive (except by will) or by the Company, except that the Company may
assign this Agreement to any successor (whether by merger, purchase or
otherwise) to all or substantially all of the stock, assets or business of the
Company. If this Agreement is not assumed by a successor to Company, the
Agreement may be terminated by Executive under the terms of Section 6.1(a) as a
termination for Good Reason.

     10.  Amendment. This Agreement may only be amended by written agreement of
the parties hereto.

     11.  Nondisclosure of Confidential Information; Non-Competition.

     11.1 Nondisclosure. Executive shall not, without the prior written consent
of the Company, use, divulge, disclose or make accessible to any other person,
firm, partnership, corporation or other entity any Confidential Information
pertaining to the business of the Company or any of its affiliates except (i)
while employed by the Company, in the business of and for the benefit of the
Company, or (ii) when required to do so by a court of competent jurisdiction, by
any governmental agency having supervisory authority over the business of the
Company, or by any administrative body or legislative body (including a
committee thereof) with jurisdiction to order Executive to divulge, disclose or
make accessible such information. For purposes of this Section 11.1,
"Confidential Information" shall mean non-public information concerning the
financial data, strategic business plans, product development (or other
proprietary product data), customer lists, marketing plans and other non public,
proprietary and confidential

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information of the Company, its respective affiliates or customers, that, in any
case, is not otherwise available to the public (other than by Executive's breach
of the terms hereof).

     11.2 Non-competition. In consideration of the Company's obligations under
this Agreement, Executive agrees that during the period of his employment
hereunder and for the period in which he receives Base Salary under this
Agreement , without the prior written consent of the Board, (i) he will not,
directly or indirectly, either as principal manager, agent, consultant, officer,
stockholder, partner, investor, lender or employee or any other capacity, carry
on, be engaged in or have any financial interest in, any business which is in
competition with the business of the Company and (ii) he shall not, on his own
behalf or on behalf of any person, firm or company, directly or indirectly,
solicit or offer employment to an person who has been employed by the Company at
any time during the twelve (12) months immediately preceding such solicitation.

     11.3 Definition of Competition. For purposes of this Section 11, a business
shall be deemed to be in competition with the Company if it is principally
involved in the purchase, sale or other dealing in any property or the rendering
of any service purchased, sold, dealt in or rendered by the Company as a part of
the business of the Company within the same geographic area in which the Company
effects such purchases, sales or dealings or renders such services. Nothing in
this Section 11 shall be construed so as to preclude Executive from investing in
any publicly or privately held company, provided Executive's beneficial
ownership of any class of such company's securities does not exceed 1% of the
outstanding securities of such class.

     11.4 Equitable Relief. Executive agrees that this covenant not to compete
is reasonable under the circumstances and will not interfere with his ability to
earn a living or to otherwise meet his financial obligations. Executive and the
Company agree that if in the opinion of any court of competent jurisdiction such
restraint is not reasonable in any respect, such court shall have the right,
power and an authority to excise or modify such provision or provisions of this
covenant as to the court shall appear not reasonable and to enforce the
remainder of the covenant as so amended. Executive agrees that any breach of the
covenants contained in this Section 11 would irreparably injure the Company.
Accordingly, Executive agrees that the Company may, in addition to pursuing any
other remedies it may have in law or in equity, cease making any payments
otherwise required by this Agreement and obtain an injunction against Executive
from any court having jurisdiction over the matter restraining any further
violation of this Agreement by Executive. Executive also agrees that
notwithstanding any other provision of this Agreement, compliance with the
provisions of this Section 11 is a condition subsequent and precedent to all
obligations of the Company hereunder to pay any bonuses previously earned or
severance benefits or provide post-termination welfare benefits even if some or
all of the provisions of this Section 11 are held to be unenforceable by a court
of law or through arbitration. Notwithstanding the expiration of the term of
this Agreement, the provisions of this Section 11 hereunder shall remain in
effect as long as is necessary to give effect thereto.

     12.  Beneficiaries; References. Executive shall be entitled to select (and
change, to the extent permitted under any applicable law) a beneficiary or
beneficiaries to receive any compensation or benefit payable hereunder following
e Executive's death, and may change such election, in either case by giving the
Company written notice thereof. In the event of Executive's death or a judicial
determination of his incompetence, reference in this Agreement to Executive

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shall be deemed, where appropriate, to refer to his beneficiary, estate or other
legal representative. Any reference to the masculine gender in this Agreement
shall include, where appropriate, the feminine.

     13. Survivorship. The respective rights and obligations of the parties
hereunder shall survive any termination of this Agreement to the extent
necessary to the intended preservation of such rights and obligations. The
provisions of this Section 13 are in addition to the survivorship provisions of
any other section of this Agreement

     14. Arbitration. Except as otherwise provide in Section 11(d) hereof, any
dispute or controversy arising under or in connection with this Agreement shall
be resolved by binding arbitration held in the City of New York, NY and
conducted in accordance with the commercial arbitration rules of the American
Arbitration Association in effect at the time of the arbitration. Each party
shall bear its own expenses in connection with any such arbitration and joint
expenses shall be borne by both parties in equal portions.

     15. Governing Law. This Agreement shall be construed, interpreted and
governed in accordance with the laws of the State of New York without reference
to rules relating to conflicts of law.

     16. Effect on Prior Agreements. This Agreement contains the entire
understanding between the parties hereto and supersedes in all respects any
prior or other agreement or understanding, both written and oral, between the
Company, any affiliate of the Company or any predecessor of the Company or
affiliate of the Company and Executive, including, without limitation, any
Change of Control Agreement with Republic Engineered Steels, Inc., his October
1, 1992 employment agreement and the June, 2000 employment agreement with the
Company's predecessors. In accepting this Agreement, Executive releases all
claims to any payments or benefits under such agreement or agreements.

     17. Withholding. The Company shall be entitled to withhold from payment any
amount of withholding required by law.

     18. Counterparts. This Agreement may be executed in two or more
counterparts, each of which will be deemed an original

     19. Indemnification. Executive shall be provided with the same
indemnification and directors and officers insurance coverage as apply to the
key officers and directors of the Company.

                             SIGNATURE PAGE FOLLOWS

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                                          REPUBLIC ENGINEERED PRODUCTS LLC

                                          By: /s/ Michael Psaros
                                              ------------------
                                              Michael Psaros
                                              Chairman of the Board

                                          EXECUTIVE

                                          By: /s/ Joseph F. Lapinsky
                                              ----------------------
                                              Joseph F. Lapinsky<PAGE>

                                                                    Exhibit 10.7

                          TRANSITION SERVICES AGREEMENT

     This TRANSITION SERVICES AGREEMENT (this "Agreement") is entered into as of
the 16th day of August, 2002 (the "Closing Date") by and among REPUBLIC
TECHNOLOGIES INTERNATIONAL, LLC, a Delaware limited liability company
("Republic"), NIMISHILLEN & TUSCARAWAS, LLC, a Delaware limited liability
company ("NT"), REPUBLIC TECHNOLOGIES INTERNATIONAL HOLDINGS, LLC, a Delaware
limited liability company ("Holdings"), BLISS & LAUGHLIN, LLC, a Delaware
limited liability company ("Bliss," and together with Republic, Holdings and NT,
collectively, "Seller"), REPUBLIC ENGINEERED PRODUCTS LLC, a Delaware limited
liability company ("Purchaser") and, solely for the purpose of consenting to
this Agreement, THE BANK OF NEW YORK, as indenture trustee and collateral agent
under the RTI Indenture (as defined below). Capitalized terms used but not
otherwise defined herein shall have the meanings ascribed thereto in the Asset
Purchase Agreement (as hereinafter defined).

                                   WITNESSETH

     WHEREAS, Seller and Purchaser have entered into an Asset Purchase Agreement
dated as of June 7, 2002 (as amended and supplemented, the "Asset Purchase
Agreement") pursuant to which Purchaser has agreed to purchase certain assets of
Republic;

     WHEREAS, the Excluded Assets retained by Seller and set forth on Schedule I
attached hereto (the "Transition Assets") are important to facilitate the use of
the Purchased Assets by Purchaser;

     WHEREAS, the wind down of Seller's bankruptcy estate will require the
assistance of Purchaser;

     WHEREAS, in order to support the continued and uninterrupted operation of
the Business, Seller and Purchaser wish to enter into an agreement as
contemplated and required by the Asset Purchase Agreement whereby each party
agrees to supply certain transitional and support services to the other party in
accordance with the terms and conditions of this Agreement during the periods
referred to herein to facilitate an orderly transition of the Business;

     WHEREAS, the execution and delivery of this Agreement is required by
Article X of the Asset Purchase Agreement as a condition to the closing of the
transaction contemplated thereunder;

     WHEREAS, The Bank of New York serves as Successor First Mortgage Trustee
for the 13-3/4% Secured Notes under the terms of an indenture dated as of August
13, 1999 (the "RTI Indenture") by and among Republic and RTI Capital Corp., as
Issuers, Holdings, NT, Bliss and Canadian Drawn Steel Company Inc., as
Guarantors of the 13-3/4% senior secured notes due 2009 (the "RTI Notes") and
United States Trust Company of New York, as predecessor trustee to The Bank of
New York; and

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     WHEREAS, CFSC Wayland Advisors, Inc. and Varde Partners, Inc. (together,
the "RTI Majority Noteholders") have advised Seller and Purchaser that they
currently hold or manage funds that own, in the aggregate, a majority of the
principal amount of the RTI Notes, and as such have certain rights under the RTI
Indenture;

     NOW, THEREFORE, in consideration of the mutual covenants and undertakings
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

                                    ARTICLE I

                                    SERVICES

           1.1 Transition Services.

           (a) Upon the terms and subject to the conditions set forth in this
Agreement, Seller shall provide to Purchaser certain transitional and support
services as set forth in Schedule I attached hereto (hereinafter referred to
individually as a "Service" or collectively as the "Services") until the
expiration of the Term or Renewal Term (each as hereinafter defined) unless
terminated earlier pursuant to Article V hereof. Upon the shutdown of any
Transition Asset during the Term or any Renewal Term, such asset will cease to
be a Transition Asset hereunder.

           (b) Without limiting the foregoing, each party shall use commercially
reasonable efforts to make its personnel available to respond to reasonable
questions from the other party's personnel relating to the Business and shall
provide all assistance reasonably requested to ensure a smooth transition to
Purchaser's ownership and operation of the Business and Seller's wind down of
its bankruptcy estate. At the reasonable request of Purchaser, Seller shall meet
with representatives of Purchaser to discuss matters relating to the Services
that Seller provides to Purchaser under this Agreement. During the Term or any
Renewal Term of the Agreement, Purchaser shall provide to Seller reasonable
access during the normal business hours of Purchaser and upon reasonable prior
written notice to Purchaser, to any books and records of Purchaser that
constitute Purchased Assets under the Asset Purchase Agreement for use in
connection with the wind down of Seller's bankruptcy estate. Any services to be
provided pursuant to this paragraph shall be on reasonable terms and reasonable
advance notice and shall not interfere with the ordinary course operation of the
business of Purchaser.

           (c) Except as otherwise provided herein, the attached Schedule I is
subject to change only upon the parties mutual written consent. To the extent
the Schedule is incomplete as of the date hereof in describing a Service, the
parties shall use good faith efforts to complete such Schedule as promptly as
practicable. Any element of a Service reflected on any such amended Schedule
shall thereafter be deemed a part of the "Service".

           (d) In addition to the Services, the parties hereto acknowledge that
there may be additional services which have not been identified on Schedule I
and which may be necessary to operate the Business following the Closing Date or
a need during any Term or Renewal Term to extend the projected shutdown date for
one or more Transition Assets. If, within one hundred

                                        2

<PAGE>

and eighty (180) days of the Closing Date, any such additional services, or such
extensions of the shutdown date, are identified and requested by either party,
such other services shall be provided, or such shutdown date(s) shall be
extended, if the other party consents to the provision of such additional
services or such extensions, which consent shall not be unreasonably withheld,
at a cost to be negotiated in good faith. Such additional services shall not
include anything excluded by Section 3.2 hereof. In the event the additional
services requested pursuant to this Section 1.1(d) are materially different from
the Services identified on Schedule I or involve Excluded Assets other than the
Transition Assets, such additional services may only be provided with the prior
written consent of the RTI Majority Noteholders. Nothing in this Section 1.1(d)
shall result in any extension of the Term or any Renewal Term except as provided
in Section 5.1.

           1.2 No Liens. None of the actions taken by Purchaser or Seller under
this Agreement shall result in any lien or encumbrance to be placed on or
asserted against the Excluded Assets, including the Transition Assets, that are
subject to the lien of the trustee and the collateral agent for the holders of
the RTI Notes, other than, with respect to the Transition Assets only, mechanics
liens that may arise in the ordinary course as a result of normal maintenance or
repairs performed during the Term or any Renewal Term with respect to the
Transition Assets which mechanics liens shall be the obligation of Seller to
satisfy.

           1.3 Agreements to be Assumed and Assigned. Schedule II sets forth a
list of certain executory contracts and unexpired leases, other than the
Purchased Contracts assigned by Seller to Purchaser at Closing, that Seller
wishes to assign to Purchaser and Purchaser wishes to assume pursuant to Section
8.15 of the Asset Purchase Agreement following the Closing (the "Additional
Contracts"). Unless and until any such Additional Contract shall have been
assumed by and assigned to Purchaser, Seller and Purchaser shall cooperate to
establish an arrangement satisfactory to Purchaser and Seller under which
Purchaser would obtain the claims, rights and benefits and assume the
corresponding liabilities and obligations thereunder (including by means of any
subcontracting, sublicensing or subleasing arrangement) or under which Seller
would enforce for the benefit of Purchaser, with Purchaser assuming and agreeing
to pay Seller's obligations, any and all claims, rights and benefits of Seller
against a third party thereto. In such event, (i) Seller will promptly pay to
Purchaser, when received, all moneys received by it under any such Additional
Contract or any claim, right or benefit arising thereunder, and (ii) Purchaser
will promptly pay, perform or discharge, when due, any and all obligations and
liabilities arising thereunder, other than those being contested in good faith.

                                   ARTICLE II

                                  SERVICE FEES

           2.1 By Purchaser.

           (a) During the Term or any Renewal Term of the Agreement, Purchaser
shall reimburse Seller for any actual, documented and reasonable costs incurred
by Seller that arise from providing the Services for Purchaser, including the
costs of operating any Transition Assets, costs associated with materials owned
or acquired by Seller that are necessary to provide the Services, and costs
(including salary and the benefits listed on Schedule I) of employing Seller's
employees involved in providing the Services. Services involving security,

                                        3

<PAGE>

environmental compliance, and asset sale activities for the Excluded Assets,
including, without limitation, the Transition Assets, are the sole and exclusive
responsibility and obligation of Seller. Without limiting the generality of the
foregoing, Purchaser shall have no responsibility or obligation to cause Seller
to maintain the operation of the Excluded Assets, including, without limitation,
the Transition Assets, in compliance with any applicable Environmental Laws.

           (b) As contemplated by the Asset Purchase Agreement and defined
therein as Installment Payments, Purchaser shall pay a fee in an aggregate
amount of Five Million U.S. Dollars ($5,000,000.00) to compensate Seller for
Seller's operation of the Transition Assets (the "Services Fee") as contemplated
in this Agreement. The Services Fee shall be paid by Purchaser for the benefit
of the holders of outstanding RTI Notes to The Bank of New York, as successor to
United States Trust Company of New York, the trustee under the RTI Indenture, or
such other agent as designated in writing by the holders of a majority of the
outstanding face amount of the RTI Notes. The Services Fee shall be paid in five
(5) equal monthly installment payments of One Million U.S. Dollars
($1,000,000.00) each commencing thirty (30) days after the Closing Date and
ending six (6) months after the Closing Date. In the event Purchaser fails to
pay any such installment payment when due or any other amounts due under this
Section 2.1(b), the RTI Majority Noteholders, on behalf of the holders of RTI
Notes, may take any action available at law or in equity to enforce the payment
of such installment payment under this Section 2.1(b).

           (c) Purchaser shall reimburse Seller for any actual, documented and
reasonable out-of-pocket expenses that are paid by Seller to third-party service
providers in the ordinary course of business consistent with past practice to
the extent any Services are provided through such third party service providers
during the Term or Renewal Term of the Agreement.

           2.2 By Seller. Seller shall reimburse Purchaser for any actual,
documented and reasonable out-of-pocket costs that are incurred by Purchaser in
providing assistance to Seller, at Seller's request, in the wind down of
Seller's bankruptcy estate.

                                   ARTICLE III

                             LIMITATION OF LIABILITY

           3.1 Except as otherwise expressly provided in this Agreement, in no
event shall any party be liable for any indirect, special, incidental,
consequential or punitive damages resulting from such party's performance or
failure to perform or breach under this Agreement, or the furnishing,
performance or use of any Services provided pursuant hereto, whether due to
breach of contract, breach of warranty, negligence or otherwise, regardless of
whether the nonperforming party was advised of the possibility of such damages
or not.

           3.2 During the Term or any Renewal Term of the Agreement, Seller
shall be solely responsible for the control, management, supervision and
performance of all environmental compliance and waste management activities
relating to the Services to be provided by Seller pursuant to this Agreement and
with respect to the operation of the Excluded Assets, and Purchaser shall have
no right, responsibility or obligation to control, manage, supervise or perform
any such environmental compliance or waste management activities. All
environmental records generated by the Seller in performing the Services shall
clearly indicate

                                        4

<PAGE>

that the Seller bears sole responsibility for all environmental compliance and
waste management activities. The performance of the Services by Seller and the
provisions of this Agreement shall not be construed to mean that the Purchaser
is the operator of any Excluded Asset, or that the Purchaser has arranged for
the disposal of any solid or hazardous waste generated by the Seller in the
performance of the Services or in the operation of the Excluded Assets.

                                   ARTICLE IV

                                 CONFIDENTIALITY

     4.1 Confidentiality. Each party agrees that all confidential information
disclosed to it in connection with the transactions contemplated by this
Agreement shall be held in confidence in accordance with the terms of and in the
manner contemplated by Section 8.3 of the Asset Purchase Agreement, except that
the period during which such information shall be maintained in confidence shall
be two years.

     4.2 Care and Inadvertent Disclosure. With respect to any confidential
information, each party agrees as follows:

     (a)  It shall use the same degree of care in safeguarding the confidential
          information of the other party as a reasonably prudent person would
          use to safeguard its own confidential information; and

     (b)  upon the discovery of any inadvertent disclosure or unauthorized use
          of the confidential information of the other party, or upon obtaining
          notice of such a disclosure or use from the other party, it shall take
          all reasonable actions to prevent any further inadvertent disclosure
          or unauthorized use.

     4.3 Ownership and Maintenance of Data. All records, data files (and the
data contained therein), input materials or data or other information, reports
and other materials that Seller receives, computes, develops, processes or
stores for Purchaser (collectively the "Data") pursuant to this Agreement after
the Closing Date will be the exclusive property of Purchaser, and Seller shall
not possess any interest, title, lien or right in connection therewith. Seller
shall safeguard the Data from disclosure to third parties with the same degree
of care exercised by reasonably prudent persons engaged in similar business.
Data shall not be utilized by Seller for any purpose other than in support of
Seller's obligations hereunder or to the extent necessary to facilitate the sale
of the Excluded Assets and the wind down of Seller's bankruptcy estate. Neither
the Data nor any part thereof shall be disclosed, sold, assigned, leased or
otherwise disposed of to third parties by Seller or commercially exploited by or
on behalf of Seller, except to the extent that disclosure of such Data to a
governmental entity or to a court of law is required to comply with
environmental or other regulatory requirements, or with a judicial decree or
order. Upon termination of any Service provided hereunder, Seller shall provide
Purchaser reasonable access to retained Data for a period not to exceed ninety
(90) days following said termination, whereupon, upon Purchaser's request, such
Data will be transferred to Purchaser at Purchaser's cost, except in the event
of termination by Purchaser under Section 5.3 by reason of Seller's material
breach, in which case such transfer will be made at Seller's cost.

                                        5

<PAGE>

     4.4 Access to Data. For a period of two (2) years from the date hereof,
Purchaser shall provide to Seller reasonable access during the normal business
hours of Purchaser and upon reasonable prior written notice to Purchaser, to any
Data to the extent necessary in connection with the wind down of Seller's
bankruptcy estate or to facilitate the sale of the Excluded Assets. Any such
access shall be on reasonable terms and reasonable advance notice and shall not
interfere with the ordinary course operation of the business of Purchaser.

     4.5 Information for RTI Majority Noteholders. Seller and Purchaser shall
provide to the RTI Majority Noteholders or their counsel any information
reasonably requested by any such party regarding the use and operation of the
Transition Assets in connection with this Agreement, provided that such party
executes and delivers to Seller and Purchaser a confidentiality agreement in
form and substance reasonably acceptable to Seller and Purchaser.

                                    ARTICLE V

                              TERM AND TERMINATION

     5.1 Term. Subject to earlier termination pursuant to the terms and
conditions contained herein, this Agreement shall commence on the Closing Date
and shall remain in full force and effect for a period of seven (7) months (the
"Term"). Purchaser may elect to extend the Term for successive periods of two
(2) months (each, a "Renewal Term") by providing Seller with written notice
thereof at least two (2) Business Days prior to the expiration of the then
current Term or Renewal Term; provided, that any further Renewal Term following
the first Renewal Term shall require the prior written consent of the RTI
Majority Noteholders.

     5.2 Termination by Mutual Agreement. The Agreement may be terminated at any
time upon the mutual written agreement of the parties.

     5.3 Termination For Cause. The occurrence of any one or more of the
following events shall constitute an event of default and grounds for
termination of this Agreement by either party:

     (a)  Immediately upon written notice, if a party violates any covenant of
          confidentiality obligation contained in this Agreement or otherwise
          discloses, uses, permits the use of, copies, duplicates, records,
          transmits or otherwise reproduces any confidential information without
          the other party's prior written approval; or

     (b)  If a party fails to perform or breaches in any material respect any
          covenant, obligation, or term in this Agreement and does not cure such
          failure to perform or breach within thirty (30) days after written
          notice thereof from the non-breaching party.

     5.4 Termination by Purchaser. Notwithstanding the foregoing, Purchaser may
terminate any Service or Services provided pursuant to this Agreement upon
thirty (30) days prior written notice to Seller.

                                        6

<PAGE>

     5.5 Survival of Obligations. Any termination or expiration of this
Agreement shall not relieve either party of its respective obligations under
this Agreement including, without limitation, the obligations of such party set
forth in Articles II, IV and VI of this Agreement.

                                   ARTICLE VI

                               COVENANTS OF SELLER

     6.1 Maintenance of Transition Assets. During the Term of this Agreement and
subject to Section 5.1, Seller shall continue to operate each Transition Asset,
from the date hereof until the shutdown date for such Transition Asset set forth
on Schedule I, in the ordinary course of business to provide the Services to
Purchaser pursuant to this Agreement; provided however, that Seller may, in
accordance with Section 6.3 hereof sell any such asset and cease to operate such
asset and perform the Services related to such asset. Without limiting the
generality of the foregoing, during the Term of this Agreement and subject to
Section 5.1, Seller shall continue to provide security services, insurance,
permits, utilities, adequate staffing and reasonable maintenance for each
Transition Asset on the same or substantially similar terms as existed prior to
the Closing. Subject to Section 5.1, in the event the Services requiring the use
of any Transition Asset set forth on Schedule I cannot be completed before the
shutdown date for such Transition Asset, Seller shall continue to operate such
Transition Asset in accordance with this Section 6.1 until the completion of
such Services. This Section 6.1 shall no longer apply to any Transition Asset
that has been sold or otherwise transferred in accordance with Section 6.3
hereof.

     6.2 Access to Excluded Plants. During the Term or any Renewal Term of this
Agreement, Seller shall grant Purchaser, the RTI Majority Noteholders and their
designees access to the Excluded Plants during normal business hours for the
purpose of removing or transporting any Purchased Assets or, at the request of
Seller, to facilitate the sale of any Excluded Assets. Purchaser shall not
remove or transport Excluded Assets from the Excluded Plants or any other
location except, at the direction of Seller, to assist Seller in the wind down
of its bankruptcy estate.

     6.3 Sale of Transition Assets. During the Term or any Renewal Term of this
Agreement, Seller shall not sell or otherwise transfer any Transition Assets to
any third party other than in accordance with the RTI Indenture and without
giving 60 days prior written notice thereof to Purchaser during the Term or any
Renewal Term, provided that such 60 days notice shall not have the effect of
extending the Term or any Renewal Term.

                                   ARTICLE VII

                                  MISCELLANEOUS

     7.1 Expenses. Each party hereto shall bear its own costs and expenses
(including the fees and disbursements of legal counsel, investment bankers and
accountants) with respect to the transactions contemplated by this Agreement,
except as otherwise expressly provided herein.

                                        7

<PAGE>

     7.2 Amendment. This Agreement may be amended, modified or supplemented only
by a written instrument signed by the parties hereto.

     7.3 Notices. Any notice, request, instruction or other document to be given
hereunder by a party hereto shall be in writing and shall be deemed to have been
given: (a) when received if given in person or by courier or a courier service;
(b) on the date of transmission if sent by telex, facsimile or other wire
transmission; or (c) three (3) business days after being deposited in the U.S.
mail, certified or registered mail, postage prepaid:

<TABLE>
<S>                                 <C>
If to Purchaser:                    With required copies to (which shall not
                                    constitute notice):

Republic Engineered Products LLC
3770 Embassy Parkway                KPS Special Situations Fund, L.P.
Akron, Ohio   44333                 200 Park Avenue, 58th Floor
Attention:  Joseph Lapinsky         New York, New York  10166
                                    Attention: Michael Psaros

                                             --and--

                                    Hunt Investment Group, L.P.
                                    Fountain Place
                                    1445 Ross Avenue
                                    Dallas, Texas   75202-2785
                                    Attention: Philip A. Arra, Jr.

                                             --and--

                                    Akin, Gump, Strauss, Hauer & Feld, L.L.P.
                                    590 Madison Avenue
                                    New York, New York  10022
                                    Attention:  Stephen B. Kuhn

                                             --and--

                                    Vinson & Elkins, L.L.P.
                                    666 Fifth Avenue, 26th Floor
                                    New York, New York  10103
                                    Attention: Steven Abramowitz

                                             --and with respect to material notices--

                                    the Majority Noteholders and their counsel as set
                                    forth below

If to Seller:                       With required copies to (which shall not
                                    constitute notice):
</TABLE>

                                        8

<PAGE>

<TABLE>
<S>                                             <C>
Republic Technologies International, LLC        McDonald, Hopkins, Burke & Haber Co., L.P.A.
[confirm post-closing address]                  2100 Bank One Center
Attention:  Kenneth Hazard                      600 Superior Avenue, E.
                                                Cleveland, Ohio   44114-2653
                                                Attention: Shawn Riley

                                                         --and--

                                                Weil, Gotshal & Manges LLP
                                                767 Fifth Avenue
                                                New York, New York 10153-0119
                                                Attention: Simeon Gold

                                                         --and with respect to material notices--

                                                the Majority Noteholders and their counsel as set forth
                                                below

If to the RTI Majority Noteholders:             With required copies to (which shall not
                                                constitute notice):

CFSC Wayland Advisers, Inc.                     Chapman and Cutler
12700 Whitewater Drive                          111 West Monroe Street
Minnetonka, MN  55343                           Chicago, Illinois  60603
                                                Attention: James E. Spiotto
</TABLE>

John Foley
952.984.3054 (direct)
952.984.3913 (fax)
john_e_foley@cargill.com

Steve Adams
952.984.3404 (direct)
952.984.3913 (fax)
steven_adams@cargill.com

Varde Partners, Inc.
3600 West 80th Street - Suite 425
Minneapolis, MN 55431

Jeremy D. Hedberg
952.893.1554 (direct)
952.893.9613 (fax)
hedberg@vardepartners.com

                                        9

<PAGE>

or to such other individual or address as a party hereto may designate for
itself by notice given as herein provided.

     7.4 Waivers. The failure of a party hereto at any time or times to require
performance of any provision hereof shall in no manner affect its right at a
later time to enforce the same. No waiver by a party of any condition or of any
breach of any term, covenant, representation or warranty contained in this
Agreement shall be effective unless in writing, and no waiver in any one or more
instances shall be deemed to be a further or continuing waiver of any such
condition or breach in other instances or a waiver of any other condition or
breach of any other term, covenant, representation or warranty.

     7.5 Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

     7.6 Headings. The headings preceding the text of articles and sections
included in this Agreement and the headings to schedules attached to this
Agreement are for convenience only and shall not be deemed part of this
Agreement or be given any effect in interpreting this Agreement.

     7.7 Interpretation. Unless otherwise indicated, words describing the
singular number shall include the plural and vice versa, and words denoting each
gender shall include the other gender and words denoting natural persons shall
include corporations and partnerships and vice versa. The use of the terms
"including" or "includes" shall in all cases herein mean "including, without
limitation" or "include, without limitation," respectively. Unless otherwise
indicated, references to articles, sections, subsections or schedules shall
refer to those portions of this Agreement. No specific representation, warranty
or covenant contained herein shall limit the generality or applicability of a
more general representation, warranty or covenant contained herein. A breach of
or inaccuracy in any representation, warranty or covenant shall not be affected
by the fact that any more general or less general representation, warranty or
covenant was not also breached or inaccurate.

     7.8 Applicable Law. The validity, construction and effect of this Agreement
shall be governed by and construed and enforced in accordance with the laws of
the State of New York, without giving effect to the principles of conflicts of
law of such state, and, to the extent applicable, the Bankruptcy Code.

     7.9 Jurisdiction; Waiver of Jury Trial. Any suit, action or proceeding
seeking to enforce any provision of, or based on any matter arising out of or in
connection with this Agreement shall be brought in the Bankruptcy Court. If the
Bankruptcy Court does not have subject matter jurisdiction over any action or
proceeding arising out of or relating to this Agreement, then each party (a)
agrees that all such actions or proceedings shall be heard and determined in
federal court of the United States for the Southern District of New York, (b)
irrevocably submits to the jurisdiction of such court in any such action or
proceeding, (c) consents that any such action or proceeding may be brought in
such court and waives any objection that such party may now or hereafter have to
the venue jurisdiction or that such action or proceeding was brought in an
inconvenient court, and (d) agrees that service of process in any

                                       10

<PAGE>

such action or proceeding may be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail),
postage prepaid, to such party at its address as provided in Section 6.3
(provided that nothing herein shall affect the right to effect service of
process in any other manner permitted by New York law). Each party hereto hereby
irrevocably waives any and all right to trial by jury in any legal proceeding
arising out of or related to this Agreement.

     7.10 Assignment. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns;
provided, however, that no assignment of any rights or obligations shall be made
by Seller without the written consent of Purchaser. Purchaser may assign this
Agreement without the written consent of Seller but may not assign this
Agreement without the written consent of the RTI Majority Noteholders unless
such assignment is to an Affiliate of Purchaser.

     7.11 No Third Party Beneficiaries. This Agreement is solely for the benefit
of the parties hereto and, to the extent provided herein, their respective
assigns, directors, officers, employees, stockholders, managers, agents and
representatives, and no provision of this Agreement shall be deemed to confer
upon other third parties any remedy, claim, liability, reimbursement, cause of
action or other right. Notwithstanding the foregoing, the holders of the RTI
Notes, including the RTI Majority Noteholders, are third party beneficiaries
with respect to Section 2.1(b) and Section 5.1.

     7.12 Severability. If any provision of this Agreement shall be held
invalid, illegal or unenforceable, the validity, legality or enforceability of
the other provisions shall not be affected thereby, and there shall be deemed
substituted for the provision at issue a valid, legal and enforceable provision
as similar as possible to the provision at issue.

     7.13 Remedies Cumulative. The remedies provided in this Agreement shall be
cumulative and shall not preclude the assertion or exercise of any other rights
or remedies available by Law, in equity or otherwise.

     7.14 Entire Understanding. This Agreement, together with the schedules
attached hereto, sets forth the entire agreement and understanding of the
parties hereto with respect to the matters described herein and supersedes any
and all prior agreements, arrangements and understandings among the parties with
respect thereto.

     7.15 Relationship of the Parties. Each party hereto shall perform the
services described hereunder as an independent contractor and no joint venture,
partnership, employment or agency relationship is created by this Agreement.
Neither party shall have, nor shall either party hold itself out as having, any
power or right, either express or implied, to bind the other party contractually
unless such other party shall consent thereto in writing. The employees who
provide the Services shall remain at all times employees of Seller, and at no
time shall any employee of Seller become, or be considered to become, an
employee of Purchaser. Seller shall have the sole right and obligation to
control, supervise, hire, terminate, direct and pay salary and benefits to the
employees providing the Services, and Purchaser shall have no such rights or
obligations.

                                       11

<PAGE>

     7.16 Force Majeure. Any delay or failure in performance hereunder by either
party, except with respect to the payment of any amounts hereunder, shall be
excused if and to the extent caused by occurrences beyond such party's
reasonable control, including but not limited to, decrees or restraints of
governments, acts of God, strikes, walk-outs or other labor disturbances
affecting the delivery of supplies or raw materials to either party, civil
commotion, sabotage, or other similar causes beyond such party's reasonable
control; provided, however, that the affected party shall promptly notify the
other party in writing of the nature and expected duration of such force
majeure, and in any event, if such force majeure continues for more than ninety
(90) days, the non-affected party shall have the right to terminate the
Agreement upon written notice to the other party.

     7.17 Publicity. No party shall, without the prior written approval of the
other party, make any press release or other public announcement concerning the
terms of the transactions contemplated by this Agreement, except as and to the
extent that any such party shall be so obligated by Law or pursuant to a lawful
request of a Governmental Authority and except as may be required by the rules
or regulations of any securities exchange; provided that, prior to issuing any
such release, the issuing party shall provide the other party in interest with a
reasonable opportunity to review such release.

                  [Remainder of page intentionally left blank.]

                                       12

<PAGE>

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

                                       REPUBLIC TECHNOLOGIES
                                       INTERNATIONAL, LLC,
                                         a Delaware limited liability company

                                       By: /s/ Joseph A. Kaczka
                                           ----------------------------------
                                       Name:   Joseph A. Kaczka
                                             --------------------------------
                                       Title:  V.P. Finance
                                              -------------------------------

                                       NIMISHILLEN & TUSCARAWAS, LLC,
                                         a Delaware limited liability company,

                                       By: /s/ Joseph A. Kaczka
                                           ----------------------------------
                                       Name:   Joseph A. Kaczka
                                             --------------------------------
                                       Title:  Vice President
                                              -------------------------------

                                       BLISS & LAUGHLIN, LLC,
                                         a Delaware limited liability company

                                       By: /s/ Joseph A. Kaczka
                                           ----------------------------------
                                       Name:   Joseph A. Kaczka
                                             --------------------------------
                                       Title:  Vice President
                                              -------------------------------

                                       REPUBLIC TECHNOLOGIES INTERNATIONAL
                                       HOLDINGS, LLC,
                                         a Delaware limited liability company

                                       By: /s/ Joseph A. Kaczka
                                           ----------------------------------
                                       Name:   Joseph A. Kaczka
                                             --------------------------------
                                       Title:  Vice President
                                              -------------------------------

                                       REPUBLIC ENGINEERED PRODUCTS LLC,
                                         a Delaware limited liability company

                                       By: /s/ Michael Psaros
                                           ----------------------------------
                                       Name:   Michael Psaros
                                       Title:  President

<PAGE>

CONSENTED TO:

THE BANK OF NEW YORK,
as trustee and collateral agent as aforesaid

By: /s/ Gary S. Bush, V.P.
    --------------------------------
Name:   Gary S. Bush
Title:  Vice President

<PAGE>

                                   SCHEDULE I

Seller will operate the following Transition Assets after the Closing Date to
convert in-process inventory and to ship finished product. Billets, hot rolled
bars, and cold finished bars will be handled, rolled, finished, stored, and
shipped by Seller's employees utilizing the Transition Assets. Listed below are
the Transition Assets to be utilized and the expected shutdown dates:

              Transition Asset                       Shutdown Date
              ----------------                       -------------
                  Chicago                               8-11-02
              Lorain 12" Mill                           8-31-02
             Massillon 18" Mill                        12-21-02
               Canadian Drawn                           -------

Purchaser will reimburse Seller for costs incurred to convert and ship product
as follows:

     .    Salaries, wages and labor-related expenses including only base pay,
          overtime premium, incentive earnings, shift differential, health
          insurance premiums or contributions, scheduled vacation pay, and FICA.

     .    Purchase and payment for fuels, utilities, supplies, and services
          required for conversion and shipment of steel products.

     .    Costs of providing administrative support (other than the salaries,
          wages and labor-related expenses described above) including payroll,
          safety, human resources, accounting, IT services, production
          scheduling, maintenance, and transportation services.

The attached schedule includes the monthly budget for anticipated incurred costs
to operate the above Transition Assets. This budget does not include any idling,
shutdown, caretaker, or disposal costs.

<PAGE>

<TABLE>
<CAPTION>

                                                              Aug 02       Sep 02       Oct 02      Nov 02      Dec 02
                                                              ------       ------       ------      ------      ------
                                                                            (all amounts in thousands)
<S>                                                           <C>          <C>          <C>         <C>         <C>
CHICAGO FINISHING
-----------------
Shipments - mnt                                                  3.0
# of Employees                                                    15
Direct Labor & Benefits                                       $   60
Fuel, Utilities, Gases                                        $   12
Support & Services                                            $    6
Non-Labor R&M                                                      0
Consumables & Supplies                                        $    6
                                                              ------
     Total                                                    $   84

LORAIN 12" ROLLING MILL
-----------------------
Production - mnt                                                22.5
# of Employees                                                   166
Direct Labor & Benefits                                       $  970
Distributed Labor & Spending                                  $  168
Fuel, Utilities, Gases                                        $  375
Support & Services                                            $   84
Non-Labor R&M                                                 $   78
Consumables & Supplies                                        $  100
Outside Processing                                            $  675
                                                              ------
     Total                                                    $2,449

MASSILLON 18" ROLLING MILL
--------------------------
Production - mnt                                                30.1         28.1         31.7         23.4     F&S Only
# of Employees                                                   297          297          297          297          107
Direct Labor & Benefits                                       $1,785       $1,785       $1,785       $1,694       $  516
Distributed Labor & Spending                                  $   82       $  $78       $   81       $   78       $    0
Fuel, Utilities, Gases                                        $  355       $  344       $  363       $  270       $   75
Support & Services                                            $   87       $   86       $   78       $   63       $   20
Non-Labor R&M                                                 $  103       $   73       $   76       $   50       $   10
Consumables & Supplies                                        $  128       $  119       $  111       $   64       $   10
Outside Processing                                            $    0       $    0       $    0       $    0       $    0
                                                              ------       ------       ------       ------       ------
     Total                                                    $2,539       $2,486       $2,493       $2,220       $  631

CANADIAN DRAWN
--------------
Production - mnt                                                 4.0          3.7          4.0          3.8          3.5
# of Employees                                                    80           80           80           80           80
Purchased Rough Stock                                         $1,882       $1,742       $1,882       $1,787       $1,647
Direct Labor & Benefits                                       $  284       $  284       $  284       $  284       $  284
Fuels, Utilities, Gases                                       $   25       $   24       $   25       $   25       $   24
Support & Service                                             $   11       $   10       $   11       $   10       $    9
Non-Labor R&M                                                 $   20       $   19       $   20       $   20       $   19
Consumables & Supplies                                        $   40       $   37       $   40       $   38       $   35
     Total                                                    $2,262       $2,116       $2,262       $2,164       $2,018

OPERATING BUDGET TOTAL                                        $7,334       $4,602       $4,755       $4,384       $2,649
</TABLE>

<PAGE>

                                   SCHEDULE II

                              Additional Contracts

1. Lease dated June 13, 1994, as thereafter amended on February 12, 2001 between
Republic Technologies International, LLC and MB Operating Co., Inc. The Lease is
recorded in Volume 1674, Page 867, Stark County, Ohio Records.

2. Lease dated August 30, 1945 between The Garaux Brothers Company, as Lessor,
and The East Ohio Gas Company, as assigned. The Lease is recorded in Volume 79,
Page 259, Stark County, Ohio Records. The assignments are recorded in Volume
110, Page 631, and as Instrument No. 95020993, Stark County, Ohio Records.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]