Document:

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                                                                   EXHIBIT 10.19

CONFIDENTIAL TREATMENT REQUESTED
UNDER C.F.R. SECTIONS
200.80(b)(4), 200.83 and 230.406

**** INDICATES OMITTED MATERIAL THAT
IS THE SUBJECT OF A CONFIDENTIAL
TREATMENT REQUEST FILED
SEPARATELY WITH THE COMMISSION

                             ROUNDS SUPPLY AGREEMENT

                                 BY AND BETWEEN

                       REPUBLIC ENGINEERED PRODUCTS, INC.

                                       AND

                         UNITED STATES STEEL CORPORATION

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                            <C>
ARTICLE I - DEFINITIONS....................................................................     2
         1.1      General..................................................................     2
         1.2      Certain Defined Terms....................................................     2

ARTICLE II - ROUNDS SALES..................................................................     3
         2.1      Quantities...............................................................     3
         2.2      Prices...................................................................     3
         2.3      Orders...................................................................     4
         2.4      Payment..................................................................     5
         2.5      Delivery, Title and Risk of Loss.........................................     5
         2.6      Terms and Conditions of Sale.............................................     6
         2.7      Warranty.................................................................     6
         2.8      Cross Default; Right of Set-off..........................................     7
         2.9      Mill Scale; Scrap........................................................     8

ARTICLE III - TERM AND TERMINATION.........................................................     9
         3.1      Term.....................................................................     9
         3.2      Termination..............................................................    10

ARTICLE IV - MISCELLANEOUS.................................................................    10
         4.1      Payment Errors...........................................................    10
         4.2      Dispute Resolution.......................................................    10
         4.3      Audit....................................................................    11
         4.4      Confidentiality..........................................................    11
         4.5      Severability.............................................................    12
         4.6      Rights and Remedies; No Consequential Damages............................    13
         4.7      Costs and Expenses.......................................................    13
         4.8      Notices..................................................................    13
         4.9      Assignment...............................................................    13
         4.10     Counterparts.............................................................    14
         4.11     Entire Agreement.........................................................    14
         4.12     Headings.................................................................    14
         4.13     Governing Law............................................................    14
         4.14     No Third Party Rights....................................................    14
         4.15     Waiver and Amendments....................................................    15
         4.16     Force Majeure............................................................    15
         4.17     Release..................................................................    15
</TABLE>

SCHEDULE A:       Prices
SCHEDULE A-1      Alloy Adjustment
SCHEDULE B:       Seller's Standard Terms and Conditions of Sale
SCHEDULE C:       Weight Calculation
SCHEDULE D:       TQR-09-02-LC Specifications

<PAGE>

                             ROUNDS SUPPLY AGREEMENT

      THIS ROUNDS SUPPLY AGREEMENT ("Agreement") made and entered into on
October , 2004 (the "Effective Date"), by and between REPUBLIC ENGINEERED
PRODUCTS, INC., a Delaware corporation (hereinafter referred to as "Seller",
"REP" or "Republic"), and UNITED STATES STEEL CORPORATION, a Delaware
corporation (hereinafter referred to as "Buyer" or "USS").

                              W I T N E S S E T H:

      WHEREAS, Buyer desires, commencing January 1, 2005 and during the term
hereof, to obtain a reliable and continuing source of rounds for its
pipe/tubemaking facility in Lorain, Ohio (hereinafter referred to as the
"Pipemill"); and

      WHEREAS, Seller desires, commencing January 1, 2005 and during the term
hereof, to supply to Buyer rounds produced by Seller at its Lorain Works
facility, in accordance with the terms and conditions set forth herein; and

      WHEREAS, the parties hereto (i.e., REP, as successor by an assignment from
Republic Engineered Products, LLC, and USS, in its own right and on behalf of
its Lorain Pipe Mills operating unit), heretofore entered into (i) a certain
Rounds Supply Agreement dated effective as of August 16, 2002 covering REP's
supply to USS of tubular rounds produced at REP's Lorain Works facility
(hereinafter the "2002 Rounds Supply Agreement"), and (ii) certain related Coke
and Pellet Supply Agreements also dated effective as of August 16, 2002 covering
USS's supply to REP of coke and pellets for use at its Lorain Works facility
(said 2002 Rounds Supply Agreement and related Coke and Pellet Supply Agreements
dated August 16, 2002 being hereinafter referred to collectively as the "2002
Agreements"); and

      WHEREAS, the said 2002 Agreements are by their terms to expire
(respectively) as of December 31, 2004; and

      WHEREAS, REP and USS desire to enter into this Agreement in order to
provide for REP's continued production and sale and USS's purchase of tubular
rounds produced at REP's Lorain Works facility, all upon and subject to the
stated terms and conditions as herein provided; and

      WHEREAS, this Agreement is being entered into in conjunction and dated
contemporaneously with the parties also entering into a related new (i) Coke
Supply Agreement and (ii) Pellet Supply Agreement covering (respectively) USS's
continued supply of coke and pellets to REP for use at its Lorain Works
facility; said new Coke and Pellet Supply Agreements being entered into of even
date herewith and (in pertinent respect) to facilitate REP's continued
production and supply of rounds to USS under this Agreement; and

      NOW, THEREFORE, Seller and Buyer have agreed and do hereby agree as
follows:

                                       1
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                             ARTICLE I - DEFINITIONS

      1.1 GENERAL.

      Each capitalized term used herein shall have the meaning assigned to it in
this Agreement (including the Schedules hereof) or as set forth in this Article
I.

      1.2 CERTAIN DEFINED TERMS.

      As used herein, the following terms shall have the meanings set forth
below:

      "Coke Supply Agreement" means the Coke Supply Agreement entered into
effective of even date herewith by and between Seller and USS.

      "Late Payment Rate" means [****].

      "Lorain Pipe Mills" or "LPM" means USS Tubular Products Division's
Pipemill facility in Lorain, Ohio, located adjacent to the Lorain Works.

      "Lorain Works" means Seller's steelmaking facilities located in Lorain,
Ohio, which facilities produces, inter alia, Rounds.

      "LPM Mills" means the LPM No. 3 Seamless Mill that utilizes Rounds that
equals or exceeds 6" (OD) and the LPM No. 4 Seamless Mill that utilizes
10 1/2" (OD) Rounds.

      "Pellet Supply Agreement" means the Pellet Supply Agreement entered into
effective of even date herewith by and between Seller and USS.

      "Person" means any individual, partnership, joint venture, firm,
corporation, limited liability company, association, trust or other entity or
government or political subdivision or any agency, department or instrumentality
thereof.

      "Rounds" means continuously cast carbon steel rounds, high strength steel
rounds and alloy steel rounds of the type produced by Seller at the Lorain Works
which are of the dimensions and chemistry set forth in Schedule D and meet the
specifications set forth in Buyer's orders as acknowledged by Seller hereunder.

      "Seller's Standard Terms and Conditions of Sale" means the terms and
conditions set forth on Schedule B.

      "Services Agreement" means the Administrative and Utility Services
Agreement dated August 16, 2002 by and between Buyer and Seller.

      "Tons," "net ton" and "NT" each means 2,000 pounds avoirdupois in weight.

      "Specification" means the TQR-09-02-LC specifications set forth in
Schedule D, as the same may be amended from time to time by mutual agreement of
the parties.

                                       2
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                            ARTICLE II - ROUNDS SALES

      2.1 QUANTITIES.

      (a) Subject to the terms hereof, Seller agrees to sell, and Buyer agrees
to buy Rounds for use at the Pipemill. Commencing with the month of January,
2005 and during each month thereafter that this Agreement is in effect, Seller
shall sell to Buyer and Buyer shall purchase from Seller a minimum of [****]
Tons of Rounds for use at the Pipemill (or at Buyer's Fairfield, AL Pipe Mill
facilities) during such calendar month, at the price(s) (according to Melt Line
of Rounds purchased) set forth in Article 2.2 "Prices" hereof. The parties agree
that Buyer shall have the right to designate the production of Rounds in the
following sizes: 6 Inches; 10 1/2 Inches; 12 1/4 Inches; 13 1/2 Inches and
11 5/8 Inches; provided, however, that no greater than [****]% of such Rounds
may be designated by Buyer as 6 Inch Rounds for production by Seller in any
single month. If REP' s ability to produce hot metal is constrained because USS
fails to provide Coke pursuant to the provisions of the Coke Supply Agreement
and/or Pellets pursuant to the provisions of the Pellet Supply Agreement, REP
may reduce shipments of Rounds to USS hereunder before curtailing shipments to
other customers. If REP' s ability to produce hot metal is constrained for
reasons unrelated to the supply of Coke and/or Pellets by USS, then REP shall
reduce shipments of steel products to other customers before curtailing
shipments of Rounds to USS hereunder.

      2.2 PRICES.

      (a) For all orders of Rounds placed hereunder, Buyer shall pay Seller the
applicable purchase price(s) based upon the type/grade of Rounds sold by Seller
and purchased by Buyer as set forth on Schedule A of this Agreement, according
to the "Melt Line Tubular" and corresponding "Base Line Per Ton As Cast" prices
as set forth in such Schedule. The designated Base Line Per Ton prices for
Rounds as set forth on Schedule A ("Base Prices for Rounds") shall be subject to
the adjustments as set forth in Article 2.2 (b) below. The designated Base Line
Per Ton prices for Rounds as set forth on Schedule A ("Base Prices for Round")
shall be subject to the following adjustments:

            (1)   Coke Adjustment

                  In the event of any change(s) (increase or decrease)
                  in the Coke price paid by REP to USS under the Coke
                  Supply Agreement from the price being paid thereunder
                  as of January 1, 2005, the Base Prices for Rounds
                  shall be subject to adjustment (increase/decrease)
                  according to the following formula:

                  [****]

            (2)   Pellet Adjustment

                  In the event of any change(s) (increase or decrease)
                  in the Pellet price(s) paid by REP to USS under the
                  Pellet Supply Agreement from the price(s) being paid
                  thereunder as of January 1, 2005, the Base Prices for
                  Rounds shall be subject to adjustment
                  (increase/decrease) according to the following
                  formula:

                  [****]

                                       3
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            (3)   Alloy Adjustment

                  [****]

            To the extent practical, the adjustments provided for hereunder
shall not be added to or subtracted from the affected Base Prices for Rounds,
but each adjustment shall be instead treated and shown on Seller's invoices as
separate line items as an increase or reduction as applicable.

      (c) The weights used for purposes of determining the amount of Rounds
actually sold hereunder shall be calculated on the basis set forth in Schedule
C, and such weights shall be conclusive as to the quantities of Rounds sold
hereunder, and such weight calculation shall exclusively govern and be used for
billing and payment purposes; provided, however, that if Buyer should encounter
material discrepancies between weights so determined and weights measured by
Buyer, Buyer and Seller shall meet to discuss reasons for such discrepancies and
whether remedial action is necessary.

      2.3 ORDERS.

      (a) The following procedures shall be used by the parties for ordering
Rounds:

            (i)   Rounds. (A) On or before the 10th day of December and the 10th
                  day of each succeeding month during the term hereof, Seller
                  will furnish Buyer with Seller's tentative schedule for
                  producing [****] tons of Rounds for the next succeeding month.
                  (B) After receipt by Buyer of Seller's schedule for producing
                  Rounds, Buyer shall, on or before the fifteenth (15th) day of
                  each such month, submit to Seller a forecast, by Rounds size,
                  of the number of Rounds heats required to melt for Rounds to
                  be delivered in the next succeeding month, said number of
                  Rounds heats as may be adjusted shall become final and binding
                  on both parties as of the last business day of such month. (C)
                  On or before the seventh (7th) day prior to the scheduled
                  monthly date for the production of Rounds as set forth in
                  subparagraph (A) above, Buyer will issue to Seller a written
                  order, which shall be conclusive, final and binding on both
                  parties, setting forth the number of heats of each grade
                  specification, and number of Rounds required by Rounds Billet
                  Number, for each Rounds size.

      (b) Within seven (7) business days of Seller's receipt of any order from
Buyer, or prior to the scheduled monthly date of production, whichever is
earlier, Seller shall e:mail Buyer the quantity and specification of Rounds
which Seller will deliver to Buyer and the anticipated delivery dates. Any
proposed changes by Seller from Buyer's order shall be negotiated by the parties
before acknowledgement.

      (c) Seller will only be required to produce a requested size of ordered
Rounds twice per month per LPM Mill at a minimum of ten heat quantity for 6"
Rounds and twelve heat quantity for larger Rounds. Seller may deliver to Buyer
during any month a quantity of Rounds that exceeds Buyer's orders for such month
by up to the next whole heat (on a grade page/Round size combination), and Buyer
shall be obligated to accept such excess quantity as if, and to the same extent
as, such excess quantity had been ordered by Buyer.

                                       4
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      (d) Notwithstanding the foregoing, Seller shall use reasonable efforts to
minimize excess Rounds production. By way of example, if Buyer orders 7.6 heats
of a grade page/Rounds size combination, Buyer will be obligated to accept a
quantity up to 8.0 heats on such grade page/Rounds size combination.

      (e) The Base Prices for Rounds on Schedule A are based on minimum
three-heat sequence per Melt Line per size. The quantity extras for less than a
three-heat sequence of a size and grade are: for two (2) heats, plus
$[****]/ton; for one (1) heat, plus $[****]/ton. Such quantity extras where
applicable shall be shown as a separate item on Seller's invoice, and shall be
invoiced when the affected Rounds are produced. The quantity extras set forth in
this paragraph shall apply only when USS requires a less than three-heat
sequence. If REP, for any other reason, utilizes a less than three-heat
sequence, no quantity extras shall apply. REP shall provide USS within 24 hours
of each melt campaign written notice of actual production by RB Number. Buyer
will pay the amounts due under this subparagraph on the next Payment Date as
defined in Article 2.5 below.

      2.4 PAYMENT.

      (a) For each railroad car of Rounds loaded for Buyer, Seller shall create
a computer file ("Manifest Sheet") containing the shipped date, manifest number,
roll order number, heat number and number of pieces. The Manifest Sheet shall be
transferred to Buyer's pipe computer system by electronic data transfer. Buyer
shall pay Seller via wire transfer, the net amount due per such Manifest Sheet
in accordance with the payment provisions set forth in Article 2.4(b) below.

      (b) Subject to Article 2.8 below, payment shall be made for each
Settlement Period (as hereinafter defined) on the Payment Date (as hereinafter
defined). A "Settlement Period" shall be the period falling from [****] (the
"First Settlement Period") and the period from [****] ("the "Second Settlement
Period"). On the day following each Settlement Period (the "Settlement Date")
(i.e. [****]), Buyer shall provide to Seller a summary of all payments to be
made on the Payment Date. The Payment Date for the First Settlement Period shall
be on the immediately succeeding [****] and the Payment date for the Second
Settlement Period shall be on the immediately succeeding [****]. In the event a
Payment Date falls on a holiday, The Payment Date shall be the day immediately
following. Any deliveries of Rounds which are not on a Manifest Sheet provided
by Seller prior to the otherwise applicable Settlement Period (e.g., due to
delays in the normal cycle) will be settled in the next Settlement Period.

      2.5 DELIVERY, TITLE AND RISK OF LOSS.

      (a) Delivery of Rounds to Buyer shall take place at the handoff between
the N&T Railroad and IRSS, unless otherwise agreed, or in such manner or at such
other place as shall be agreed upon by the parties in writing prior to the
shipment of Rounds. Title and risk of loss and damage to the Rounds shall pass
from Seller to Buyer when the Rounds are delivered in accordance with this
Article 2.5(a). Seller shall be responsible for truck detention and/or rail
demurrage charges incurred by Buyer which arise out of delays to carrier
equipment at Lorain Works receiving shipments of Rounds ordered hereunder which
have been scheduled by Seller, it being understood that Seller will ordinarily
schedule such shipments. Seller shall accept direct billing from carriers for
any such detention and/or demurrage.

                                       5
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      (b) Delivery of Rounds to USS shall take place F.O.B. railcar at the
mainline carrier interface, unless otherwise agreed, or in such manner or at
such other place as shall be agreed upon by the parties in writing prior to the
shipment of Rounds. Title and risk of loss and damage to the Rounds shall pass
from Seller to USS when the Rounds are delivered in accordance with this Article
2.5(b). Seller shall be responsible for truck detention and/or rail demurrage
charges incurred by USS which arise out of delays to carrier equipment at the
Lorain Works receiving shipments of Rounds ordered hereunder which have been
scheduled by Seller, it being understood that Seller will ordinarily schedule
such shipments. Seller shall accept direct billing from carriers for any such
detention and/or demurrage.

      2.6 TERMS AND CONDITIONS OF SALE.

      (a) Seller's Standard Terms and Conditions of Sale set forth in Schedule B
shall govern the purchase and sale of Rounds hereunder except to the extent that
a provision of this Agreement otherwise applies.

      (b) In the event of a conflict between the terms and conditions of this
Agreement and the terms or conditions contained in any notice, shipment,
specifications, purchase order, sales order, acknowledgment or other document
which may be used in connection with the transactions contemplated by this
Agreement, the terms and conditions of this Agreement shall supersede and
govern, unless expressly waived in accordance with Article 4.16. In the event of
a conflict between, the terms and conditions of this Agreement and the terms or
conditions contained in any Schedule or Annex hereto, the terms and conditions
of this Agreement shall supersede and govern.

      2.7 WARRANTY.

      (a) Seller warrants that the Rounds supplied hereunder shall be (i) in
full conformity with the Specifications and with Buyer's orders, (ii) free from
defects in material and workmanship, (iii) of good quality, and (iv) fit and
sufficient for use at Buyer's Pipemill (or USS's Fairfield Works, as applicable)
for the production of seamless pipe.

      (b) Seller agrees that it will maintain adequate internal quality
management system controls, including but not limited to documented procedures,
process monitoring, testing and inspection to guarantee that Buyer receives
Rounds meeting the warranty set forth in Paragraph (a) above. Seller shall
submit to Buyer, within twenty four (24) hours of each occurrence, a written
report documenting such occurrence of nonconformance with Seller's process. Such
report shall also include Seller's action plan to prevent nonconforming Rounds
that may result from such nonconformance from being shipped to Buyer. Buyer's
representative shall be permitted unrestricted access to Lorain Works at all
times during the production of Rounds to conduct an audit and to monitor
operations and Buyer's representative shall also be permitted access to Lorain
Works to review Seller's quality records relating to the production of Rounds.

                  (c) When Rounds are supplied by Seller that are not in
                  conformance with the warranty set forth in Article 2.7.(a)
                  above and such non-conformance is determined by Buyer to be
                  caused by steelmaking, casting, cutting or the maintenance of
                  traceability, including but not limited to failure to meet the
                  Specifications, gross or excessive seams, laps, cracks,
                  porosity, flux

                                       6
<PAGE>

                  entrapment, inclusions, and non-metalics exceeding
                  commercially acceptable levels for the melt line, mixed steel,
                  or any other quality problem that may cause damage to Buyer's
                  equipment or present a risk of harm to Buyer's personnel
                  during processing, Buyer shall provide a written
                  disqualification notice to Seller notifying Seller `of Buyer's
                  intent to disqualify the affected product line from Buyer's
                  requirements obligations hereunder. Seller shall have five (5)
                  days to investigate the identified warranty problem and to
                  cure the problem or to provide Buyer assurances that the
                  problem will be remedied and which remedy is sufficiently
                  satisfactory to Buyer to cause Buyer to cancel
                  disqualification notice, which cancellation shall not be
                  unreasonably withheld.

      (d) In the event that Seller supplies Rounds to Buyer that do not conform
to the specifications as identified in Buyer's orders or the Specifications
hereunder, Buyer shall notify Seller of such non-conformity. Seller will
reimburse Buyer for all of Buyer's costs and expenses associated with
identifying, sorting and testing non-conforming Rounds and suspected
non-conforming Rounds including third party inspection and testing costs and
expenses (including all transportation costs associated with transportation to
and from customer's or third party inspector's facilities), subject to prior
Buyer notification and approval.

      2.8 CROSS DEFAULT; RIGHT OF SET-OFF.

      (a) The parties hereby agree that Buyer's obligations to make payments to
Seller hereunder for Rounds during each Settlement Period are expressly
conditioned upon and subject to the prior satisfaction in full by Seller of any
and all of its payment obligations to USS under the Coke Supply Agreement, the
Pellet Supply Agreement and the Services Agreement.

      (b) Only in the event of a payment default by Republic, which is defined
as any failure by Republic at any time to make a payment when due under Article
2.4 of the Pellet Supply Agreement, Article 2.5 of the Coke Supply Agreement
and/or Article 3.2 of the Services Agreement (for any reason other than
exercising its rights upon a payment default by USS), USS may (a) defer payment
of any amounts due for Rounds hereunder until such time as any and all
delinquent amounts due and owing USS under the Services Agreement, Pellet Supply
Agreement and/or the Coke Supply Agreement (the "Delinquent Amount") are paid,
and/or (b) deliver to Republic a "Notice of Intent to Effect Set-off." Provided
that Republic has not remitted to USS the Delinquent Amount within 5 days of
Republic's receipt of the Notice of Intent to Effect Set-off, USS may, on the
5th day following the delivery of such Notice, set-off the Delinquent Amount
against the amounts owed by USS to Republic hereunder for Rounds as of the date
of such Notice. Interest on the Delinquent Amount shall accrue at the Late
Payment Rate specified in this Agreement.

      (c) Notwithstanding any provision herein to the contrary, in the event
that (i) USS ceases operation at the Pipemill either on a temporary or permanent
basis or (ii) USS enters into an agreement to sell or otherwise transfer
ownership of the Pipemill assets or operations to a third party, then USS shall
have the express, immediate and continuing right to set-off any and all amounts
owed by USS to Republic hereunder against any and all amounts owed by Republic
to USS under the Coke Supply Agreement, the Pellet Supply Agreement and/or the
Services

                                       7
<PAGE>

Agreement. In addition to the set-off right contained in the immediately
preceding sentence, Buyer and USS may also substitute new or revised payment
terms and conditions for the payment terms which are then in effect hereunder.

      (d) Republic hereby agrees to continue to perform fully its obligations
hereunder and under the Coke Supply Agreement, the Pellet Supply Agreement and
the Services Agreement notwithstanding the exercise by USS of any of its rights
hereunder.

      2.9 MILL SCALE; SCRAP.

      (a) Mill Scale. LPM will deal directly with Stein or other third party for
the handling of mill scale. Republic will have no right, title, interest,
ownership, obligation or liability in, to orin connection with such mill scale
generated by LPM.

      (b) Vehicle Scrap. LPM will not send vehicle scrap to Republic.

      (c) Miscellaneous Scrap. With regard to other steel scrap (e.g., crop
ends, test coupons, burned-to-length scrap and the like) ("Miscellaneous Scrap")
generated by Buyer, the following procedures shall apply:

            (i)   Where rail access is readily available, LPM will load the
                  Miscellaneous Scrap onto rail cars used to deliver the Rounds
                  to LPM hereunder, at which time ownership of such Scrap shall
                  pass to Republic, and LPM shall have no further claim, right,
                  title, interest, obligation or liability in, to or in
                  connection with such Scrap. Republic shall pay LPM for the
                  Miscellaneous Scrap [****] received from the Lake Terminal
                  scale. All costs associated with the transportation and
                  weighing of such Scrap shall be borne by [****];

            (ii)  Where rail access is not readily available, LPM will load the
                  Miscellaneous Scrap into scrap boxes ("Boxes") provided and
                  maintained by LPM. When a Box is full, LPM will arrange for
                  delivery of such Box to Republic, with the costs of such
                  delivery to be borne by [****]. Republic shall pay to LPM the
                  amount set forth below for the Miscellaneous Scrap [****], as
                  measured on the truck scales located at the Stein, Inc.
                  Lorain, Ohio facility, with the costs of such weighing to be
                  borne by LPM. Ownership of the Miscellaneous Scrap shall pass
                  to Republic upon delivery of such Scrap to Republic, and LPM
                  shall have no further claim, right, title, interest,
                  obligation or liability in, to or in connection with such
                  Scrap.

            (iii) For Miscellaneous Scrap Republic will pay to LPM an amount
                  equal to the arithmetic average of the low and high scrap
                  prices for the Chicago, Cleveland and Pittsburgh areas for
                  plate and structural [****]' maximum, as published by American
                  Metal Market on the fifth working day of the month such scrap
                  is delivered, less $[****] per Gross ton for handling.

            (iv)  LPM agrees to prepare the Miscellaneous Scrap to lengths of
                  approximately [****] feet or less, and will segregate carbon
                  versus alloy wherever possible.

                                       8
<PAGE>

      (d) LPM will provide to Republic a monthly Metals Balance setting forth
quantity of scrap sold to Republic under this Articles 2.9(b) and (c). All
amounts payable to LPM by Republic under this Article 2.9 shall be paid as a
credit taken by LPM on a monthly basis against amounts due to Republic under
Article 2.4.

      (e) Terms of Sale. All Miscellaneous Scrap sold to Republic hereunder
shall be delivered pursuant to the terms and conditions contained in LPM's order
acknowledgement and IS SOLD AS IS, WITHOUT ANY WARRANTIES OR GUARANTEES
WHATSOEVER. LPM makes no, and hereby disclaims any and all, representations,
warranties or guaranties, whether express or implied, including without
limitation, warranties as to the condition, composition or other physical
characteristics of such materials and any implied warranties of merchantability
or fitness for a particular purpose. All such material is being transported for
recycling purposes as defined in applicable tariffs and other laws, rules and
regulations.

                       ARTICLE III - TERM AND TERMINATION

      3.1 TERM.

      This Agreement shall be effective as of the Effective Date set forth in
the preamble hereto and shall remain in full force and effect through June 30,
2005, unless thereafter extended upon the written mutual agreement of the
parties or earlier terminated as follows:

            (i)   By written mutual consent of the parties at any time;

            (ii)  By either party if the other party is in default under any of
                  the provisions of this Agreement and fails to correct such
                  default within 30 days of written notice of such default;

            (iii) By Seller if Buyer at any time fails to make any payment when
                  due under the terms of this Agreement; or

            (iv)  By Buyer, upon 30 days' prior written notice, if Seller
                  terminates the Coke Supply Agreement, the Pellet Supply
                  Agreement or the Services Agreement for any reason other than
                  default of USS thereunder.

In addition to the rights of Buyer to terminate this Agreement pursuant to
subsection (v) above, USS shall have the right, upon the occurrence of any of
the events set forth therein, (X) to suspend production and/or refuse to make
further shipments or deliveries of Coke and/or Pellets or otherwise suspend its
further performance under the Coke Supply Agreement, the Pellet Supply Agreement
and/or the Services Agreement or (Y) to declare immediately due and payable all
then outstanding and unpaid invoices covering Coke and/or Pellets previously
delivered under the Coke Supply Agreement and/or the Pellet Supply Agreement.

In addition to its other remedies set forth elsewhere herein and as provided
under applicable law, upon notice to REP and/or USS may withhold and retain from
time to time out of monies due REP hereunder, amounts sufficient to fully
reimburse and compensate Buyer and/or USS for any loss or damage which it
sustains, or may sustain, as a result of any default or any breach by REP of any
of the provisions of the Coke Supply Agreement, the Pellet Supply Agreement
and/or the Service

                                       9
<PAGE>

Agreement, or by reason of any other claims LPM and/or USS may have against REP
under any other agreement between them.

As used herein, "default" means failure of either party to perform, keep or
observe any material obligation, provision, warranty or condition contained
herein, unless such performance is otherwise excused by the terms of this
Agreement.

      3.2 TERMINATION.

      (a) Seller and Buyer agree that upon and after termination of this
Agreement:

            (i)   All orders previously accepted by Seller hereunder, and
                  Buyer's obligation to pay for such orders, shall continue in
                  full force and effect.

            (ii)  Buyer shall remain obligated to make any payment that became
                  due and owed to Seller hereunder prior to termination.

            (iii) Liabilities and obligations of any party arising from any act,
                  omission, default or occurrence prior to termination shall
                  remain with such party.

            (iv)  The parties' rights and obligations under Articles 2.4, 2.7,
                  4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.13, 4.14, 4.15, 4.17 and
                  this Article III shall survive the termination of this
                  Agreement.

                           ARTICLE IV - MISCELLANEOUS

      4.1 PAYMENT ERRORS.

      (a) If either Buyer or Seller believes that there has been an error in an
amount paid or the timing of any payment hereunder, then such party shall notify
the other party of such alleged error and shall provide such written evidence of
the error as is available at the time of such notice. Each party shall provide
the other with sufficient records relating to the matter so as to permit the
parties to attempt to resolve the inconsistency.

      (b) Following the determination of whether an error occurred, any
overpayment or underpayment found shall be remedied, by the party that benefited
from such error.

      (c) Notwithstanding the foregoing, neither party may question the
accuracy, correctness, timing or amount of any payment under this Agreement
unless it notifies the other party of its disagreement within the 12 months
immediately following the date such payment was due.

      4.2 DISPUTE RESOLUTION.

      At any time and from time to time, if the parties are unable to resolve a
dispute concerning Buyer's or Seller's performance or nonperformance of their
obligations under this Agreement (excepting any disputes excluded
herefrom), Buyer or Seller, as the case may be, shall provide written notice to
the other of such dispute as provided in Article 4.9 hereof. It is mutually
agreed that any default by USS in its payment obligations hereunder (or any
dispute relating thereto),

                                       10
<PAGE>

and/or any dispute relating to USS's exercise of its rights under Article 2.10
hereof shall not be subject to (and are excluded from) the provisions of this
Article 4.3; it being agreed that any such excluded disputes (as aforesaid)
shall be pursued and adjudicated by the parties in a court of competent
jurisdiction. Any other dispute shall be resolved by using the procedures for
Mediation and Arbitration set forth below:

      (a) Mediation. At any time after a party has provided a written notice of
dispute to the other party, but prior to the time that either party commences
arbitration pursuant to Article 4.3(b) herein, the parties may agree to submit
the dispute to non-binding mediation under terms and conditions satisfactory to
both parties.

      (b) Arbitration. At any time after a party has provided a written notice
of dispute to the other party, including at any time during any non-binding
mediation agreed to by the parties, either party may submit the matter in
dispute to a pre-designated arbitrator or, in the event such arbitrator has not
been selected or is unavailable, to a three member arbitral panel to which each
Party shall appoint one member and those two members shall appoint a third
member. Such arbitration shall be governed by the CPR Rules for Non-Administered
Arbitration of Business Disputes. Pending the issuance of an arbitral decision,
the Parties shall continue their full and normal operations and obligations in
accordance with this Agreement. All arbitral awards for the payment of money
and/or for any retroactive adjustment of any interim prices paid hereunder shall
accrue interest at the Late Payment Rate starting from the date on which any
amount is due or the date on which the interim payment was due.

      (c) Consent to Enforceability. Each of the Parties consents and agrees
that any arbitral award rendered pursuant to Subsection 4.3(b) shall be final,
non-appealable and binding against the Parties and their respective assets, and
may be enforced by any court of competent jurisdiction.

      4.3 AUDIT

      (a) Each party shall maintain such books and records as may be reasonably
necessary to verify amounts due under this Agreement and Buyer shall maintain
records to verify compliance with its requirement obligations under Article 2.2
above. Such books and records shall be open to audit by the other party's third
party accounting firm during reasonable business hours during the life of this
Agreement and for a period of one (1) years thereafter. The costs associated
with such audit shall be paid by the requesting party and the audit firm shall
sign a confidentiality agreement satisfactory to the party being audited.

      4.4 CONFIDENTIALITY

      (a) Buyer and Seller acknowledge that all information about the
businesses, properties, finances, prospects, marketing, processes, products,
methods, computer programs, procedures, machinery, apparatus or trade secrets
owned, or held or used (including under license from or agreement with third
parties) by the other that is disclosed to Buyer or Seller, as the case may be,
during the course of performing its obligations under this Agreement is the
property of, and is proprietary and confidential to the disclosing party (the
"Proprietary Information").

      (b) Buyer and Seller agree that they shall use reasonable efforts not to
make any disclosure of the other's Proprietary Information (including methods or
concepts utilized therein

                                       11
<PAGE>

other than those commonly known to professionals in the field) to any Person
other than officers, employees and agents of and consultants to Buyer or Seller
to whom such disclosure is necessary or convenient for performance of its
obligations hereunder and except as may be required by applicable legal
requirements or by a court of competent jurisdiction. Buyer and Seller shall
appropriately notify each officer, employee, agent and consultant to whom any
such disclosure of the other's Proprietary Information is made that such
disclosure is made in confidence and shall be kept in confidence by such Person.

      (c) Each of Buyer and Seller agrees to use diligent efforts in accordance
with customary and reasonable commercial practice and at least with the same
degree of skill and care that it would manifest in protection of its own
proprietary and confidential property to protect the other's Proprietary
Information.

      (d) Each of Buyer and Seller agrees to notify the other immediately in the
event that it becomes aware of the unauthorized possession or use of the other's
Proprietary Information (or any part thereof) by any third Person, including any
of its officers, employees, agents or consultants. Each of Buyer and Seller
further agrees to cooperate with the other in connection with its efforts to
terminate or prevent such unauthorized possession or use of such Proprietary
Information. Seller or Buyer, as the case maybe, shall pay the nonproprietary
party's reasonable out-of-pocket expenses in so cooperating, unless the
unauthorized possession or use of the Proprietary Information resulted from the
fault or negligence of such nonproprietary party.

      (e) Notwithstanding any other provision of this Agreement, the obligation
of Buyer and Seller to maintain the confidentiality of the other's Proprietary
Information shall not apply to any portion of such Proprietary Information that:

            (i)   was in the public domain at the time of Buyer's or Seller's
                  disclosure to the other;

            (ii)  enters the public domain through no fault of the
                  nonproprietary party;

            (iii) was communicated to the nonproprietary party by a third party
                  free of any obligation of confidence known to the
                  nonproprietary party; or

            (iv)  was developed by officers, employees or agents of or
                  consultants to the nonproprietary party independently of and
                  without reference to the Proprietary Information;

provided, however, that Proprietary Information which is specific shall not be
considered to be within the exception provided by this Article 4.5(e) merely
because it is embraced by general information in the public domain; provided
further, that any combination of features within the Proprietary Information
shall not be deemed. within such exception merely because individual features
are within the public domain, but only if the combination itself is within the
public domain.

      4.5 SEVERABILITY.

      In case anyone or more of the provisions contained in this Agreement is
adjudged to be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the

                                       12
<PAGE>

remaining provisions contained herein shall not in any way be affected or
impaired thereby, except to the extent necessary to avoid an unjust or
inequitable result.

      4.6 RIGHTS AND REMEDIES; NO CONSEQUENTIAL DAMAGES.

      The rights and remedies granted under this Agreement shall not be
exclusive but shall be in addition to all other rights and remedies available at
law or in equity, including, but not limited to, claims for breach of contract,
except that Buyer and Seller agree that in no event shall either party be liable
to the other for any indirect, special or consequential damages or lost profits
as a result of a breach of any provision of this Agreement.

      4.7 COSTS AND EXPENSES.

      Each of Buyer and Seller shall bear its own expenses incurred in
connection with the negotiation, preparation and execution of this Agreement.

      4.8 NOTICES.

      All notices or other communications required or permitted by this
Agreement shall be effective upon receipt and shall be in writing and (i)
personally delivered, or (ii) mailed by registered or certified mail, return
receipt requested, or (iii) sent by overnight delivery service which provides
proof of delivery, or (iv) sent by telecopy, with a duplicated copy sent via
first class mail postage prepaid, addressed as follows:

                  If to Seller:

                           REPUBLIC ENGINEERED PRODUCTS, INC.
                           3770 Embassy Parkway
                           Akron, Ohio 44333
                           Attention: Vice President - Commercial
                           Facsimile: (330) 670 - 7030

                  If to Buyer:

                           UNITED STATES STEEL CORPORATION
                           Room 2001
                           600 Grant Street
                           Pittsburgh, PA 15219 - 2800
                           Attention: General Manager Tubular Products
                           Facsimile: (412) 433-3993

or to such other address as hereafter shall be furnished as provided in this
Article 4.9 by either of the parties hereto to the other.

      4.9 ASSIGNMENT.

      (a) Except as provided in Article 4.10(c), neither party can without the
prior written consent of the other assign any of its rights or benefits or
delegate any of its duties or obligations

                                       13
<PAGE>

under this Agreement, and any attempted assignment or delegation which is not
permitted under Article 4.10(c) shall be null, void and without effect;
provided, however, that Buyer may grant a security interest in Buyer's rights,
benefits, duties and obligations under this Agreement without the consent of
Seller. Buyer shall provided Seller written notice of the granting or revision
of any such security interest.

      (b) The rights, benefits, duties and obligations of each party hereto
shall inure to the benefit of, and be binding upon, any successors, assigns or
delegates permitted under Article 4.10(c).

      (c) Either party hereto may delegate any of its duties or obligations
under this Agreement to any Person, but except as otherwise provided in this
Agreement such party shall remain liable for the full performance of such duties
and obligations. Either party hereto may assign or delegate any of its rights,
benefits, duties or obligations hereunder (i) to any Person if it has received
the prior written consent of the other party, which consent shall not be
unreasonably withheld or delayed, (ii) to its legal successor if it merges
(whether or not it is the surviving corporation) or consolidates with one or
more other Persons or (iii) to any Person to whom either party has made any
sale, lease, transfer or other disposition of all or substantially all of its
assets; provided, however, that neither party may make an assignment or
delegation described in clauses (ii) and (iii) above unless there are delivered
to the other party such written assumptions, affirmations and/or legal opinions
as such other party may reasonably request to preserve its rights and remedies
under this Agreement.

      4.10 COUNTERPARTS.

      This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute a
single instrument.

      4.11 ENTIRE AGREEMENT.

      This Agreement (including the Schedules hereto) sets forth the entire
understanding and agreement between the parties as to the matters covered herein
and supersedes and replaces any prior understanding, agreement or statement of
intent, in each case written or oral. Schedules A, A-1, B, C and D attached are
hereby incorporated by reference and made apart of this initial Agreement.

      4.12 HEADINGS.

      The headings contained in this Agreement are for convenience of reference
only and do not modify or affect in any way the meaning or interpretation of
this Agreement.

      4.13 GOVERNING LAW.

      This Agreement shall be construed and enforced in accordance with, and
governed by, the laws of the State of Ohio, excluding its conflict of laws
provisions.

      4.14 NO THIRD PARTY RIGHTS.

                                       14
<PAGE>

      This Agreement is intended to be solely for the benefit of the parties
hereto and is not intended to confer any benefits upon, or create any rights in
favor of, any Person other than the parties hereto, except as expressly provided
to the contrary elsewhere in this Agreement.

      4.15 WAIVER AND AMENDMENTS.

      No waiver shall be deemed to have been made by either party of any of its
rights under this Agreement unless the same shall be in a writing that expressly
refers to this Article 4.16 and is signed on its behalf by its authorized
officer. Any such waiver shall constitute a waiver only with respect to the
specific matter described in such writing and shall in no way impair the rights
of the party granting such waiver in any other respect or at any other time.
This Agreement shall not be amended or modified except by an instrument in
writing signed by the party against whom enforcement is sought.

      4.16 FORCE MAJEURE.

      (a) Except for obligations to make payments hereunder, neither party
hereto shall be liable for any failure to perform the terms of the Agreement
when such failure is due to Force Majeure. "Force Majeure" means acts of God,
strikes, lockouts, or other labor disputes or disturbances, civil disturbances,
arrests and restraint from rulers or people, interruptions or terminations by or
as a result of government or court action or orders, or present and future valid
orders of any regulatory body having jurisdiction, acts of the public enemy,
wars, riots, blockades, insurrections, inability to secure or delay in securing
labor or materials by reason of allocations promulgated by authorized
governmental agencies, epidemics, landslides, lightning, earthquakes, fire,
storm, floods, washouts, explosions, breakdowns or accidents, inability to
obtain transportation services, or any other cause, whether of the kind herein
enumerated or otherwise, not reasonably within the control of the party claiming
Force Majeure. The Force Majeure shall, so far as possible, be remedied with all
reasonable dispatch. The settlement of strikes or lockouts or other labor
disputes or disturbances shall be entirely within the discretion of the party
having the difficulty, and the above requirement that any Force Majeure shall be
remedied with all reasonable dispatch shall not require the settlement of
strikes, lockouts, or labor disputes or disturbances by acceding to the demands
of any opposing party therein when such course is inadvisable in the discretion
of the party having the difficulty.

      (b) The party whose performance is affected or who has reason to believe
such performance may be affected by reason of Force Majeure shall as promptly as
possible give notice thereof to the other party and shall confirm such notice in
writing if requested, giving the particulars of the event, including supporting
documentation if available. The party so affected shall also take reasonable
steps to resume performance hereunder with the least possible delay.

      4.17 RELEASE.

      (a) As part of the consideration forming the basis for the parties
entering into this Agreement and the related Coke Supply Agreement and Pellet
Supply Agreement, and other good and valuable consideration the receipt and
sufficiency of which is hereby acknowledged, USS and REP do hereby
unconditionally remise, release and forever discharge each other of and from any
and all open and pending claims and disputes arising out of or related to the
2002 Rounds Supply

                                       15
<PAGE>

Agreement that were in existence as of the Effective Date of this Agreement,
including, but not limited to, any claim by USS relating to an annual rebate
based upon the volume of Rounds purchased under such 2002 Agreement; provided
however that the foregoing release shall not be deemed to release any routine
payment, weight adjustment and/or quality claims arising in the ordinary course
of business under the 2002 Rounds Supply Agreement, or any claims constituting a
material breach or default by either party thereunder that arise or occur after
the date on which this Agreement is executed by all parties, but prior to
expiration of the 2002 Rounds Supply Agreement.

      (b) Nothing contained in Article 4.17 (a) above or elsewhere in this
Agreement shall alter or affect REP's or USS's respective rights, or release
either party of their respective obligations under the 2002 Rounds Supply
Agreement except as otherwise expressly modified or provided to the contrary
herein.

                                       16
<PAGE>

      IN WITNESS WHEREOF, this Agreement has been executed and delivered as of
the date first written above.

                                       REPUBLIC ENGINEERED PRODUCTS, INC.

                                       By:  /s/ James T. Thielens, Jr.
                                            -----------------------------------
                                       Name: James T. Thielens, Jr.
                                       Title: VP Commercial

                                       UNITED STATES STEEL CORPORATION

                                       By: /s/ Leslie J. Broglie
                                           ------------------------------------
                                       Name: Leslie J. Broglie
                                       Title: General Manager - Tubular Products

                                       17
<PAGE>

                                 2005 SCHEDULE A

                                     [****]

<PAGE>

                                  SCHEDULE A-1
                              LORAIN TUBULAR ALLOY

                                     [****]

                                       2
<PAGE>

                                   SCHEDULE B
                                       TO
                             ROUNDS SUPPLY AGREEMENT

                 SELLER'S STANDARD TERMS AND CONDITIONS OF SALE

1.    PAYMENTS: Payments shall be made at par in legal tender of the United
      States of America. Buyer shall make such arrangements for payment as
      Seller shall from time to time reasonably require, and Seller may suspend
      production, shipment or delivery until such arrangements are made. Unless
      authorized, if Buyer fails to make payment in full within the time period
      set forth on in the Agreement or within the time period expressly agreed
      upon in writing by the parties, such failure to pay on time constitutes a
      material breach of contract by Buyer permitting Seller to suspend
      production, shipment or delivery under this or any other contract between
      Buyer and Seller, and Buyer shall pay to Seller interest on the unpaid
      amount at the Late Payment Rate, and Seller shall have, in addition, all
      other remedies permitted to Seller by law, equity and this contract. If
      Seller has to take legal action to collect any amount due hereunder, Buyer
      shall pay court costs, plus reasonable attorney's fees incurred by Seller
      in bringing such legal action.

2.    TAXES: To the extent legally permissible, all present and future taxes
      imposed by any Federal, state, foreign or local authority which Seller may
      be required to payor collect, upon or with reference to the sale,
      purchase, transportation, delivery, storage, use or consumption of goods
      or services, including taxes upon or measured by the receipts therefrom
      (except net income and equity franchise taxes), shall be for account of
      Buyer.

3.    TITLE; INCIDENTAL TRANSPORTATION AND STORAGE CHARGES: Unless otherwise
      agreed, title to goods and risk of loss shall pass to Buyer upon tender of
      delivery at the F.O.B. point specified. Any charges at destination for
      spotting, switching, handling, storage and other accessorial services, and
      demurrage, shall be for Buyer's account. Seller shall have the right to
      assess a storage and handling charge for goods left in Seller's possession
      after notification to Buyer that the goods are available to ship.

4.    TIME OF SHIPMENT AND SHIPPING: Time is not of the essence hereunder. Each
      shipment is to be considered a separate sale. Seller reserves the right to
      ship all or any part of the goods from any shipping point of Seller other
      than the shipping point or points specified herein.

5.    SPECIFICATION VARIATIONS: Except in the particulars specified by Buyer
      .and expressly agreed to in writing signed by Seller, the goods furnished
      hereunder shall be produced in accordance with the Seller's standard
      practices. All goods, however, including those produced to meet an exact
      specification, shall be subject to Seller's mill tolerances and variations
      consistent with good mill practice in respect to dimension, weight,
      straightness, section, composition and mechanical or physical properties,
      and to normal variations in surface and internal conditions and in quality
      and to deviations from tolerances and variations consistent with practical
      testing and inspection methods and to regular mill practice on over and
      under shipments (as set forth in Article 2.4(c) of the Rounds Supply
      Agreement.

                                       3
<PAGE>

6.    INSPECTION: Where mill inspection is made by Buyer, Buyer's inspector
      shall be deemed the agent of Buyer with authority to waive specified tests
      and details of test procedure and to accept goods as conforming to this
      contract with respect to all characteristics of such goods for which such
      inspection is made.

7.    FORCE MAJEURE: Shall have the meaning as set forth in Article 4.17 of the
      Rounds Supply Agreement.

8.    PATENT INDEMNITY: Seller shall indemnify Buyer (a) for all direct and
      actual damages recovered from Buyer by a third party in a legal action for
      infringement of a U.S. patent claim covering goods furnished hereunder, on
      condition that Buyer promptly notifies Seller of the alleged infringement,
      affords Seller the opportunity to assume defense thereof, and cooperates
      with Seller in defense of the action and in any feasible mitigation of
      damages; and (b) for Buyer's directly and reasonably incurred expenses in
      defending such legal action if, after such notice and opportunity given by
      Buyer, Seller elects not to assume such defense; provided, that such
      election by Seller shall not otherwise affect Buyer's aforesaid
      obligations. In like manner, Buyer shall indemnify Seller, and Seller's
      indemnity of Buyer hereunder shall not apply, with respect to a claim
      arising out of Seller's compliance with special designs or specifications
      furnished by Buyer, now or hereafter forming a part of this contract, or
      with other written instructions given by Buyer for the purpose of
      directing the manner in which Seller shall perform this contract. In no
      event shall a party hereto have any liability hereunder for indirect or
      consequential losses or damages suffered, or other expenses incurred, by
      the other party hereto or any third party by reason of any patent
      infringement claim.

9.    WARRANTY DISCLAIMERS: SELLER WARRANTS THAT THE GOODS FURNISHED HEREUNDER
      WILL BE PRODUCED AND TESTED IN ACCORDANCE WITH THIS AGREEMENT AND THE
      SPECIFICATIONS SET FORTH IN BUYER'S ORDER. HOWEVER, NO WARRANTY OF FITNESS
      FOR ANY PARTICULAR PURPOSE NOR ANY OTHER REPRESENTATION OR WARRANTY,
      WHETHER EXPRESS OR IMPLIED, IS MADE RESPECTING SAID GOODS, OR THE
      PRODUCTION THEREOF AND THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THIS
      AGREEMENT AND THE DESCRIPTION IN BUYER'S ORDER.

10.   LIMITATION OF REMEDIES: Seller will replace, at the delivery point
      specified herein, any goods furnished hereunder that are found to be
      defective or otherwise fail to conform to any warranty or this contract,
      or, at Seller's option, Seller will promptly repay the price paid for such
      goods, plus any transportation charges and other incidental expenses paid
      or incurred by Buyer as a result of Seller's breach in addition to such
      price. Claims must be made promptly following delivery of the goods to
      Buyer and Seller must be given a reasonable opportunity to investigate and
      cure any nonconformity; provided, that Seller's right to cure shall not
      extend beyond 5 days after Buyer's notice of such defect or nonconformity.
      Except as expressly set forth otherwise in the Round Supply Agreement,
      Buyer's exclusive remedies with respect to any goods furnished by Seller
      hereunder that are found to be defective or otherwise not in conformity
      with any warranty or this contract shall be limited exclusively to the
      right to replacement thereof or to repayment of the price, as above
      provided. Seller's liability for any other breach of this contract shall
      be limited to the

                                       4
<PAGE>

      difference between the delivered price of the goods covered hereby and the
      market price of such goods at Buyer's destination at the time of such
      breach. IN NO EVENT SHALL SELLER BE LIABLE FOR PERSONAL INJURY, PROPERTY
      DAMAGE, LOSS OF PROFIT, DELAY OR ANY CONSEQUENTIAL DAMAGES WHETHER ARISING
      FROM CONTRACT, BREACH OF CONTRACT, TORT, SELLER'S NEGLIGENCE, STRICT
      LIABILITY, OR ANY EXPRESS OR IMPLIED WARRANTY, INCLUDING, BUT NOT LIMITED
      TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
      PURPOSE.

11.   EXCLUSIVE TERMS AND CONDITIONS; ACCEPTANCE; MODIFICATION: No terms or
      conditions other than those stated herein and no agreement or
      understanding, oral or written, in any way purporting to modify these
      terms and conditions shall be binding on Seller unless hereafter made in
      writing, specifically stating that it is a modification of these terms and
      conditions, and signed by Seller's authorization representative. If these
      conditions and this form constitute Seller's acceptance of Buyer's order,
      then this acceptance is expressly made conditional on Buyer's assent to
      these conditions as the only conditions for this sale. Acceptance of the
      products sold hereunder by Buyer shall constitue assent to these
      conditions, and Seller hereby objects to and rejects any and all
      additional or different terms proposed by Buyer, whether contained in
      Buyer's purchase order or shipping release forms, or elsewhere. All
      proposals, negotiations and representations, if any, made prior and with
      reference hereto are merged herein.

12.   CONDITIONS INCORPORATED BY REFERENCE: Any clause required to be included
      in a contract of this type by any applicable law or administrative
      regulation having the effect of law shall be deemed to be incorporated
      herein.

13.   WAIVER: Waiver by Seller or Buyer of any breach of these provisions shall
      not be construed as a waiver of any other breach.

14.   ASSIGNMENT: Neither party may assign its rights or obligations hereunder
      without the prior written consent of the other party.

15.   TITLES: The titles used in these Conditions are for convenience or
      reference only and are not to be considered in interpreting the substance
      of the condition.

                                       5
<PAGE>

                                   SCHEDULE C
                                       TO
                             ROUNDS SUPPLY AGREEMENT

                                     WEIGHTS

The following theoretical weights, in pounds per foot of length, is used to
calculate production and shipping weights for Rounds sold to Buyer's Pipemill or
to USS's Fairfield Works, as applicable. This shipping weight calculation is
used for billing and freight purposes.

<TABLE>
<CAPTION>
Size (inches)       Type       Weight (lbs./foot)
-------------       ----       ------------------
<S>                 <C>        <C>
      6.0           Cast             93.9162
     10.5           Cast            287.6185
     11.625         Cast            352.5528
     12.25          Cast            391.4807
     13.5           Cast            475.4510
</TABLE>

<PAGE>

                                   SCHEDULE D
                                       TO
                             ROUNDS SUPPLY AGREEMENT

                         THE TQR-09-02-LC SPECIFICATIONS

                        LPM TUBULAR QUALITY REQUIREMENTS

                                                    Number:   TQR-09-02-LC
Title:   INBOUND ROUNDS QUALITY                     Page:     1 OF 6
                REQUIREMENTS,                       Previous: 08-01-95
         REPUBLIC - CAST & ROLLED ROUNDS            Revised:  03-10-00

(1)SCOPE:

      Quality requirements for Cast & Rolled Rounds produced at the Republic
      Primary Operations-Lorain #1 and #2 Casters, for LPM, to include the
      following outside diameter sizes:

            6"                                        -- #4 SEAMLESS APPLICATION

            10-1/2", 12 1/4", 12 3/4" & 13 1/2"       -- #3 SEAMLESS APPLICATION

(2)REQUIREMENTS:

      GENERAL
      2.1-Steel is ordered by specification number, which comprises the last
      three digits of the Round Billet Number and refers to the "LPM Steel
      Specification."

      2.2-Heat chemistries shall be within limits specified as "Ladle Acceptance
      Limits" on the Specification. Residual elements, not specified, shall be
      kept as low as possible, consistent with sound steelmaking practices.

      2.3-Heats with chemistries outside the "Ladle Acceptance Limits" and heats
      or rounds violating any other specification requirement may be rejected by
      Steelmaking or the Caster, or referred to Tubular Quality Assurance for
      disposition.

      IDENTIFICATION
      2.4-6" ROUNDS-Each round shall be legibly paint stenciled on one end with
      the heat number and round billet (RB) number specified on the requisition.

      2.5-10-1/2", 12-1/4" , 12-3/4" & 13-1/2" ROUNDS-Each round shall be
      legibly DOUBLE paint stenciled on one end with the heat number and round
      billet (RB) number specified on the requisition.

      DIMENSIONAL TOLERANCES
      2.6- WEIGHT/LENGTH -- Rounds shall be ordered by length corresponding to
      the required weight. Uniform round length is CRITICAL.
<PAGE>
            2.6.A- Orders in which short rounds cannot be accepted, shall be
            identified by Business Planning on the requisition.

      2.7-Final length tolerances are applicable for all rounds, regardless of
      where the rounds are cut.

            2.7.A-For #3 Seamless, see Table I.
            2.7.B-For #4 Seamless, see Table II.

                                     TABLE I

NO. 3 SEAMLESS MILL

10.5" Rounds -- +1"/-1" MAXIMUM VARIANCE FROM ORDERED LENGTH.
12.25"/12.75"/13.5" Rounds less than 13.5 foot mult lengths - +1"/-1"
12.25"/12.75"/13.5" Rounds equal to or greater than 13.5 foot mult lengths -
+2"/-1". NOTE -- Short rounds may be shipped under the following guidelines:

GROUP A - ROUNDS BETWEEN 1% AND 7.5% SHORT OF ORDERED LENGTH. Rounds shall be
segregated, manifested as Group A Shorts, and shipped separately. Manifests
shall be faxed to #3 Hot Mill (3530), Lorain Business Planning (3044), #3
Seamless Department Manager (3079) and LPM Accounting (3266).

If Group A shorts exceed 10% of a heat, they shall be referred to LPM Business
Planning and the #3 Seamless Department Manager before shipping.

Rounds greater than 7.5% short shall NOT BE SHIPPED, they must be referred to
LPM Business Planning and the #3 Seamless Department Manager for acceptance or
rejection.

                                    TABLE II

NO. 4 SEAMLESS MILL

ALL ROUND SIZES -- +2"/-0" MAXIMUM VARIANCE FROM ORDERED LENGTH.

NOTE: -- Short rounds may be shipped under the following guidelines:

GROUP A-- ROUNDS NO MORE THAN 20% OR 12 INCHES (WHICHEVER IS LESS) SHORT OF
      ORDERED LENGTH.

Group A shorts shall be those billets intended for production of < or =2.875" OD
      pipe.

GROUP B -- ROUNDS NO MORE THAN 10% OR 12 INCHES (WHICHEVER IS LESS) SHORT OF
           ORDERED LENGTH.

Group B shorts shall be those billets intended for production of > 2.875" and <
or = 4.500" OD pipe.

Short Rounds intended for production of 4.875" OD pipe SHALL NOT BE SHIPPED
until referred to LPM Business Planning and the #4 Seamless Dent. Manager for
acceptance or rejection

Rounds shall be segregated, manifested as Group A or Group B shorts, and shipped
separately.

Monthly consumption of short rounds shall not exceed 0.75%.

                                       3
<PAGE>
      2.8- OUTSIDE DIAMETER -- Average OD of any section of rolled rounds shall
      not exceed +1/8"/- 0" and for cast rounds +1/8"/-1/8" from the ordered OD,
      measured with a Pipe tape.

      2.9- OVALITY (out of round) -- Maximum diameter minus minimum diameter of
      any section (excluding flat spots and mechanical defects) shall not to
      exceed:

<TABLE>
<S>                                            <C>      <C>
            6" Rounds                          --       3/16"
            10 1/2" Rounds                     --       1/4"
            12-1/4" & 12 3/4"                  --       5/16"
            13.5"                              --       3/8"
</TABLE>

      2.10- STRAIGHTNESS -- All sizes, variance shall not exceed 1/2" per 5' of
      length.

      2.11- END SQUARENESS - Shall not exceed:

<TABLE>
<S>                                   <C>      <C>
            6" Rounds                 --       1/4" From Perpendicular
            10-1/2" Rounds            --       5/16" From Perpendicular
            12-1/4" &12 3/4"          --       3/8" From Perpendicular
            13 -1/2                   --       7/16" From Perpendicular
</TABLE>

      SURFACE CONDITION
      2.12- Flat Spots -- Width shall not exceed Table 2 dimensions, with the
      following aims Table 1, for maximum width based on round diameter. Flat
      spots exceeding Table 2 limits, may be referred to the respective Hot Mill
      management for acceptance.

<TABLE>
<CAPTION>
                                                        TABLE 1          TABLE 2
                                                        -------          -------
<S>                                                     <C>              <C>
            6" Rounds                                   1"               1 -3/4"
            10-1/2" Rounds                              1 -1/4"          2"
            12-1/4" &12 3/4"                            1 -1/2"          2"
            13-1/2"                                     1 -3/4"          2 -3/4"
</TABLE>

      2.13- MECHANICAL DEFECTS -- The width to depth ratio for mechanical
      defects such as gouges and roll marks, shall be at least 4 to 1. Defect
      depth should not exceed:

<TABLE>
<CAPTION>
                                                                        Depth             Width
                                                                        -----             -----
<S>                                                     <C>             <C>               <C>
            6" Rounds                                   1/16"            3/4"
            10 1/2" Rounds                              1/4"             1"
            12-1/4" & 12 3/4" & 13 1/2                  5/16"            1"
</TABLE>

      2.14- END CONDITION -- Ends shall be free from gouges and grooves. Torch
      build-up (swarf) in excess of 1/4" thick on 6" rounds and 3/4" on 10.5"
      and larger diameter rounds shall be considered rejectable. Rounds
      exceeding these limits shall not be shipped until referred to the
      respective operating department Department Manager for acceptance.

      STEEL QUALITY
      2.15- SURFACE -- Surface defects, such as seams, cracks, and laps shall be
      minimized through sound steel-making, casting practices and rolling
      practices.

                                       4
<PAGE>
      2.16-INTERNAL -- Internal soundness and density shall be sufficient to
      ensure uniformity of billet weight per unit length. Internal defects such
      as inclusions, and porosity, shall be minimized through sound steel-making
      and casting practices.

      ROUNDS LOADING
      2.17- Rounds shall be loaded in "clean" railroad cars. There should be no
      scrap, bands, slag or other metallic scrap present. Cars should not have
      holes in the flooring, and all sidewalls should be present, and stable as
      applicable.

      2.18- Rounds shall be loaded with the identification end facing east in
      the railroad car. The following loading guidelines should be followed as
      much as possible:

      --    There should be at least a 4' space at the identification end of
            each stacked pile of rounds within the car.

      --    The stacked pile should not exceed the height of the car sidewalls.

      --    The ends of the pile should be square, not staggered. The billets
            should be parallel within the stack, not crooked or skewed.

      2.19- The rounds in each pile shall be of the same heat and RB number,
      with no more than three (3) heats of a single RB number and no more than
      three (3) RB numbers of a single grade in one car.

      DOCUMENTATION
      2.20- Official tundish analysis shall be maintained in the Republic
      computerized heat release system and on ladle analysis sheets maintained
      by the Republic Technical Services Department. Certified test reports.
      shall be required.

      2.21- A billet manifest shall accompany each railroad car and accurately
      identify the heat and RB number of all rounds loaded. Actual and manifest
      round counts shall correspond.

      2.22- Additional documentation, necessary to satisfy order requirements,
      shall be reviewed with Republic personnel for approval, prior to order
      entry.

      NON-CONFORMANCES
      2.23- SUPPLYING FACILITY -- Heats or rounds failing to meet quality or
      specification requirements may be rejected by Republic, or referred to the
      LPM Quality Assurance Department for disposition. Referrals should be made
      during normal daylight working hours, whenever possible.

      2.24- INCOMING INSPECTION -- Inbound rounds failing to meet quality
      requirements on incoming inspection shall be subject to return to
      Republic. All count or identification discrepancies shall be corrected or
      resolved by Republic personnel in cooperation with LTC personnel and
      documented prior to charging the rounds. Corrective action may be required
      of Republic in cases of serious or repetitive nonconformances.

      2.25- FINAL INSPECTION -- Rejected LPM Product attributable to supplied
      steel or round quality, shall be reviewed with Republic personnel. Samples
      shall be made

                                       5
<PAGE>
      available, as applicable. Corrective action may be required of Republic in
      cases of serious or repetitive quality problems.

      2.26- GENERAL-- The supplier shall maintain a system for the reporting of
      defects and noncompliance discovered during the performance of services
      performed for LPM.

            2.26.A- This system for the reporting shall meet the intent of the
            requirements and provisions of Title 10, Code of Federal
            Requirements Part 21(10-CFR-21). Actual NRC notification shall be
            conducted by USS Tubular Products.

      (3) RESPONSIBILITIES

            3.1-It shall be the responsibility of the REPUBLIC steel cast billet
            facility to:

                  3.1.A- Use trained personnel to perform the services specified
                  in this requirement.

                  3.1.B- Generate and maintain documented procedures for the
                  production of steel cast billets, to ensure compliance with
                  applicable specifications and standards.

            3.2-It shall be the responsibility of LPM DEPARTMENT MANAGER QUALITY
            ASSURANCE to:

                  3.2.A- Maintain the requirements for steel cast billets
                  supplied to the LPM within the scope of this TQR.

                  3.2.B- Perform, through qualified auditors, audits of
                  Republic's billet supplying facilities.

                  3.2.C- Resolve all Heat and steel cast billet nonconformances
                  referred by the Republic steel cast billet testing facilities.

            3.3-It shall be the responsibility of LPM to:

                  3.3.A-Utilize only approved steel cast billet facilities for
                  the supplying of steel furnished to the LPM.

                        LPM TUBULAR QUALITY REQUIREMENTS

                                                          Number:   TQR-09-02-LC
Title:   INBOUND ROUNDS QUALITY                           Page:     1 OF 6
                REQUIREMENTS,                             Previous: 08-01-95
         REPUBLIC - CAST & ROLLED ROUNDS                  Revised:  03-10-00

(1)SCOPE:

      Quality requirements for Cast & Rolled Rounds produced at the Republic
      Primary Operations-Lorain #1 and #2 Casters, for LPM, to include the
      following outside diameter sizes:

            6"                                        -- #4 SEAMLESS APPLICATION

                                       6
<PAGE>
            10-1/2", 12 1/4", 12 3/4" & 13 1/2"       -- #3 SEAMLESS APPLICATION

(2)REQUIREMENTS:

      GENERAL

      2.1-Steel is ordered by specification number, which comprises the last
      three digits of the Round Billet Number and refers to the "LPM Steel
      Specification."

      2.2-Heat chemistries shall be within limits specified as "Ladle Acceptance
      Limits" on the Specification. Residual elements, not specified, shall be
      kept as low as possible, consistent with sound steelmaking practices.

      2.3-Heats with chemistries outside the "Ladle Acceptance Limits" and heats
      or rounds violating any other specification requirement may be rejected by
      Steelmaking or the Caster, or referred to Tubular Quality Assurance for
      disposition.

      IDENTIFICATION

      2.4-6" ROUNDS-Each round shall be legibly paint stenciled on one end with
      the heat number and round billet (RB) number specified on the requisition.

      2.5-10-1/2", 12-1/4" , 12-3/4" & 13-1/2" ROUNDS-Each round shall be
      legibly DOUBLE paint stenciled on one end with the heat number and round
      billet (RB) number specified on the requisition.

      DIMENSIONAL TOLERANCES

      2.6- WEIGHT/LENGTH -- Rounds shall be ordered by length corresponding to
      the required weight. Uniform round length is CRITICAL.

            2.6.A- Orders in which short rounds cannot be accepted, shall be
            identified by Business Planning on the requisition.

      2.7-Final length tolerances are applicable for all rounds, regardless of
      where the rounds are cut.

            2.7.A-For #3 Seamless, see Table I.

            2.7.B-For #4 Seamless, see Table II.

                                     TABLE I

NO. 3 SEAMLESS MILL

10.5" Rounds -- +1"/-1" MAXIMUM VARIANCE FROM ORDERED LENGTH.
12.25"/12.75"/13.5" Rounds less than 13.5 foot mult lengths - +1"/-1"
12.25"/12.75"/13.5" Rounds equal to or greater than 13.5 foot mult lengths -
+2"/-1".
NOTE -- Short rounds may be shipped under the following guidelines:

GROUP A - ROUNDS BETWEEN 1% AND 7.5% SHORT OF ORDERED LENGTH.

Rounds shall be segregated, manifested as Group A Shorts, and shipped
separately. Manifests shall be faxed to #3 Hot Mill (3530), Lorain Business
Planning (3044), #3 Seamless Department Manager (3079) and LPM Accounting
(3266).

                                       7
<PAGE>
If Group A shorts exceed 10% of a heat, they shall be referred to LPM
Business Planning and the #3 Seamless Department Manager before shipping.

Rounds greater than 7.5% short shall NOT BE SHIPPED, they must be referred to
LPM Business Planning and the #3 Seamless Department Manager for acceptance or
rejection.

                                    TABLE II

NO. 4 SEAMLESS MILL

ALL ROUND SIZES -- +2"/-0" MAXIMUM VARIANCE FROM ORDERED LENGTH.

NOTE: -- Short rounds may be shipped under the following guidelines:

GROUP A-- ROUNDS NO MORE THAN 20% OR 12 INCHES (WHICHEVER IS LESS) SHORT OF
      ORDERED LENGTH.

Group A shorts shall be those billets intended for production of < or =2.875" OD
pipe.

GROUP B -- ROUNDS NO MORE THAN 10% OR 12 INCHES (WHICHEVER IS LESS) SHORT OF
           ORDERED LENGTH.

Group B shorts shall be those billets intended for production of > 2.875" and <
or = 4.500" OD pipe.

Short Rounds intended for production of 4.875" OD pipe SHALL NOT BE SHIPPED
until referred to LPM Business Planning and the #4 Seamless Dent. Manager for
acceptance or rejection

Rounds shall be segregated, manifested as Group A or Group B shorts, and shipped
separately.

Monthly consumption of short rounds shall not exceed 0.75%.

      2.8- OUTSIDE DIAMETER -- Average OD of any section of rolled rounds shall
      not exceed +1/8"/- 0" and for cast rounds +1/8"/-1/8" from the ordered OD,
      measured with a Pipe tape.

      2.9- OVALITY (out of round) -- Maximum diameter minus minimum diameter of
      any section (excluding flat spots and mechanical defects) shall not to
      exceed:

<TABLE>
<S>                                            <C>      <C>
            6" Rounds                          --       3/16"
            10 1/2" Rounds                     --       1/4"
            12-1/4" & 12 3/4"                  --       5/16"
            13.5"                              --       3/8"
</TABLE>

      2.10- STRAIGHTNESS -- All sizes, variance shall not exceed 1/2" per 5' of
      length.

      2.11- END SQUARENESS - Shall not exceed:

<TABLE>
<S>                                   <C>      <C>
            6" Rounds                 --       1/4" From Perpendicular
            10-1/2" Rounds            --       5/16" From Perpendicular
</TABLE>

                                       8
<PAGE>
<TABLE>
<S>                                   <C>      <C>
            12-1/4" &12 3/4"          --       3/8" From Perpendicular
            13 -1/2                   --       7/16" From Perpendicular
</TABLE>

      SURFACE CONDITION

      2.12- Flat Spots -- Width shall not exceed Table 2 dimensions, with the
      following aims Table 1, for maximum width based on round diameter. Flat
      spots exceeding Table 2 limits, may be referred to the respective Hot Mill
      management for acceptance.

<TABLE>
<CAPTION>
                                                        TABLE 1          TABLE 2
                                                        -------          -------
<S>                                                     <C>              <C>
            6" Rounds                                   1"               1 -3/4"
            10-1/2" Rounds                              1 -1/4"          2"
            12-1/4" &12 3/4"                            1 -1/2"          2"
            13-1/2"                                     1 -3/4"          2 -3/4"
</TABLE>

      2.13- MECHANICAL DEFECTS -- The width to depth ratio for mechanical
      defects such as gouges and roll marks, shall be at least 4 to 1. Defect
      depth should not exceed:

<TABLE>
<CAPTION>
                                                                        Depth             Width
                                                                        -----             -----
<S>                                                     <C>             <C>               <C>
            6" Rounds                                   1/16"            3/4"
            10 1/2" Rounds                              1/4"             1"
            12-1/4" & 12 3/4" & 13 1/2                  5/16"            1"
</TABLE>

      2.14- END CONDITION -- Ends shall be free from gouges and grooves. Torch
      build-up (swarf) in excess of 1/4" thick on 6" rounds and 3/4" on 10.5"
      and larger diameter rounds shall be considered rejectable. Rounds
      exceeding these limits shall not be shipped until referred to the
      respective operating department Department Manager for acceptance.

      STEEL QUALITY

      2.15- SURFACE -- Surface defects, such as seams, cracks, and laps shall be
      minimized through sound steel-making, casting practices and rolling
      practices.

      2.16-INTERNAL -- Internal soundness and density shall be sufficient to
      ensure uniformity of billet weight per unit length. Internal defects such
      as inclusions, and porosity, shall be minimized through sound steel-making
      and casting practices.

      ROUNDS LOADING

      2.17- Rounds shall be loaded in "clean" railroad cars. There should be no
      scrap, bands, slag or other metallic scrap present. Cars should not have
      holes in the flooring, and all sidewalls should be present, and stable as
      applicable.

      2.18- Rounds shall be loaded with the identification end facing east in
      the railroad car. The following loading guidelines should be followed as
      much as possible:

      --    There should be at least a 4' space at the identification end of
            each stacked pile of rounds within the car.

      --    The stacked pile should not exceed the height of the car sidewalls.

      --    The ends of the pile should be square, not staggered. The billets
            should be parallel within the stack, not crooked or skewed.

                                       9
<PAGE>
      2.19- The rounds in each pile shall be of the same heat and RB number,
      with no more than three (3) heats of a single RB number and no more than
      three (3) RB numbers of a single grade in one car.

      DOCUMENTATION

      2.20- Official tundish analysis shall be maintained in the Republic
      computerized heat release system and on ladle analysis sheets maintained
      by the Republic Technical Services Department. Certified test reports.
      shall be required.

      2.21- A billet manifest shall accompany each railroad car and accurately
      identify the heat and RB number of all rounds loaded. Actual and manifest
      round counts shall correspond.

      2.22- Additional documentation, necessary to satisfy order requirements,
      shall be reviewed with Republic personnel for approval, prior to order
      entry.

      NON-CONFORMANCES

      2.23- SUPPLYING FACILITY -- Heats or rounds failing to meet quality or
      specification requirements may be rejected by Republic, or referred to the
      LPM Quality Assurance Department for disposition. Referrals should be made
      during normal daylight working hours, whenever possible.

      2.24- INCOMING INSPECTION -- Inbound rounds failing to meet quality
      requirements on incoming inspection shall be subject to return to
      Republic. All count or identification discrepancies shall be corrected or
      resolved by Republic personnel in cooperation with LTC personnel and
      documented prior to charging the rounds. Corrective action may be required
      of Republic in cases of serious or repetitive nonconformances.

      2.25- FINAL INSPECTION -- Rejected LPM Product attributable to supplied
      steel or round quality, shall be reviewed with Republic personnel. Samples
      shall be made available, as applicable. Corrective action may be required
      of Republic in cases of serious or repetitive quality problems.

      2.26- GENERAL-- The supplier shall maintain a system for the reporting of
      defects and noncompliance discovered during the performance of services
      performed for LPM.

            2.26.A- This system for the reporting shall meet the intent of the
            requirements and provisions of Title 10, Code of Federal
            Requirements Part 21(10-CFR-21). Actual NRC notification shall be
            conducted by USS Tubular Products.

      (3) RESPONSIBILITIES

      3.1-It shall be the responsibility of the REPUBLIC steel cast billet
      facility to:
            3.1.A- Use trained personnel to perform the services specified in
            this requirement.
            3.1.B- Generate and maintain documented procedures for the
            production of steel cast billets, to ensure compliance with
            applicable specifications and standards.

                                       10
<PAGE>
            3.2-It shall be the responsibility of LPM DEPARTMENT MANAGER QUALITY
                  ASSURANCE to:
                  3.2.A- Maintain the requirements for steel cast billets
                  supplied to the LPM within the scope of this TQR.
                  3.2.B- Perform, through qualified auditors, audits of
                  Republic's billet supplying facilities.
                  3.2.C- Resolve all Heat and steel cast billet nonconformances
                  referred by the Republic steel cast billet testing facilities.

      3.3-It shall be the responsibility of LPM to:
            3.3.A-Utilize only approved steel cast billet facilities for the
            supplying of steel furnished to the LPM.

                                       11<PAGE>

                                                                   EXHIBIT 10.20

CONFIDENTIAL TREATMENT REQUESTED
UNDER C.F.R. SECTIONS
200.80(b)(4), 200.83 and 230.406

**** INDICATES OMITTED MATERIAL THAT
IS THE SUBJECT OF A CONFIDENTIAL
TREATMENT REQUEST FILED
SEPARATELY WITH THE COMMISSION

                             PELLET SUPPLY AGREEMENT

                                 BY AND BETWEEN

                         UNITED STATES STEEL CORPORATION

                                       AND

                       REPUBLIC ENGINEERED PRODUCTS, INC.

<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                              <C>
ARTICLE I - DEFINITIONS.......................................................................................    1
ARTICLE II - PELLET SALES.....................................................................................    3
         2.1      Quantities..................................................................................    3
         2.2      Schedules...................................................................................    3
         2.3      Prices......................................................................................    3
         2.4      Invoices and Payment........................................................................    4
         2.5      Delivery, Title and Risk of Loss............................................................    5
         2.6      Terms and Conditions of Sale................................................................    6
         2.7      Warranty....................................................................................    6
         2.8      Cross-Default; Setoff; Right to Substitute New Terms........................................    6

ARTICLE III - TERM AND TERMINATION............................................................................    7
         3.1      Term........................................................................................    7
         3.2      Termination.................................................................................    8

ARTICLE IV - MISCELLANEOUS....................................................................................    8
         4.1      Payment Errors..............................................................................    8
         4.2      Dispute Resolution..........................................................................    9
         4.3      Records.....................................................................................    9
         4.4      Confidentiality.............................................................................   10
         4.5      Severability................................................................................   11
         4.6      Rights and Remedies; No Consequential Damages...............................................   11
         4.7      Costs and Expenses..........................................................................   11
         4.8      Notices.....................................................................................   11
         4.9      Assignment..................................................................................   12
         4.10     Counterparts................................................................................   13
         4.11     Headings....................................................................................   13
         4.12     Governing Law...............................................................................   13
         4.13     No Third Party Rights.......................................................................   13
         4.14     Waiver and Amendments.......................................................................   13
         4.15     Force Majeure...............................................................................   13
         4.16     Release.....................................................................................   14
         4.17     Entire Agreement............................................................................   14
</TABLE>

SCHEDULE A:       2005 Quality Specification for Minntac Acid Pellets
SCHEDULE B:       2005 Quality Specification for Minntac USS Fluxtac Pellets
SCHEDULE C:       2005 Quality Specification for Keetac Acid Pellets

                                      (i)
<PAGE>

                             PELLET SUPPLY AGREEMENT

      THIS PELLET SUPPLY AGREEMENT, made and entered into this __ day of
September, 2004 (the "Effective Date"), by and between REPUBLIC ENGINEERED
PRODUCTS, INC., a Delaware corporation ("Buyer" or "Republic") and UNITED STATES
STEEL CORPORATION, a Delaware corporation ("Seller" or "USS").

                              W I T N E S S E T H:

      WHEREAS, Buyer desires to purchase Pellets (as defined herein) for use
during the first half of 2005 at its Lorain Works steelmaking facility located
near Lorain, Ohio; and

      WHEREAS, Seller desires to supply Pellets to Buyer; and

      WHEREAS, Buyer and Seller wish to enter into this Pellet Supply Agreement
(this "Agreement") setting forth, inter alia, the terms and conditions relating
to Seller's agreement to sell to Buyer, and Buyer's agreement to purchase from
Seller, Pellets, all upon and subject to the terms and conditions herein
provided.

      NOW, THEREFORE, Buyer and Seller hereby agree as follows:

                            ARTICLE I - DEFINITIONS

      As used herein, the following terms shall have the meanings set forth
below:

      "Acid Pellets" means taconite pellets produced at Seller's Minntac
facility or Seller's Keetac Facility meeting the Specifications set forth in
Schedule A and Schedule C, as amended from time to time by Seller, subject to
the consent of Buyer, which consent shall not be unreasonably withheld.

      "Agreement" shall have the meaning assigned in the Recitals hereto.

      "Buyer" shall have the meaning assigned in the preamble hereto.

      "Coke" shall have the meaning set forth in the Coke Supply Agreement.

      "Coke Supply Agreement" means the Coke Supply Agreement of even date
herewith by and between Buyer and Seller.

      "Default" shall have the meaning assigned in Article 3.1.

      "Effective Date" shall have the meaning assigned in the preamble hereto.

      "Fluxed Pellets" means taconite pellets produced at Seller's Minntac
facility meeting the Specifications set forth in Schedule B, as amended from
time to time by Seller, subject to the consent of Buyer, which consent shall not
be unreasonably withheld.

      "Force Majeure" shall have the meaning assigned in Article 4.16.

                                       1
<PAGE>

      "Keetac" means Seller's acid taconite ore pellet producing facility in
Keewatin, Minnesota.

      "Lorain Pipe Mills" or "LPM" means USS' pipe/tubemaking facility in
Lorain, Ohio..

      "Lorain Works" means Buyer's steelmaking facility in Lorain, Ohio.

      "Late Payment Rate" means [****]

      "Material Adverse Change" shall have the meaning assigned in Article
2.5(g).

      "Minntac" means Seller's acid and fluxed taconite ore pellet producing
facility in Mt. Iron, Minnesota.

      "Navigation Date" means the date of the official seasonal opening of
navigating routes required for lake transportation from Upper Lake ports to
Lorain Works, which event typically occurs on or about March 25.

      "Navigation Season" means the period commencing in the spring of each year
(typically on or about March 25) during which the Great Lakes are open to
navigation from Lake Superior ports to Lorain, Ohio.

      "Payment Date" shall have the meaning assigned in Article 2.5(c).

      "Pellets" means Minntac Fluxed Pellets, Minntac Acid Pellets or Keetac
Acid Pellets.

      "Person" means any individual, partnership, joint venture, firm,
corporation, limited liability company, association, trust or other entity or
government or political subdivision or any agency, department or instrumentality
thereof.

      "Product Price" means the contract prices set forth in Article 2.4(b).

      "Proprietary Information" shall have the meaning assigned in Article
4.5(a).

      "Republic" shall have the meaning assigned in the preamble hereto.

      "Rounds" shall have the meaning assigned in the Rounds Supply Agreement.

      "Rounds Supply Agreement" means the Rounds Supply Agreement of even date
herewith by and between Republic and USS.

      "Seller" shall have the meaning assigned in the preamble hereto.

      "Services Agreement" means the Administrative and Utility Services
Agreement dated August 16, 2002 by and between Republic and USS.

      "Settlement Date" shall have the meaning assigned in Article 2.5(c).

      "Settlement Period" shall have the meaning assigned in Article 2.5(c).

                                       2
<PAGE>

      "Shipping Season" means: (a) for 2004, that period extending from the
Effective Date through the day immediately prior to the 2005 calendar year
Navigation Date, and (b) for 2005, that period extending from the 2005 calendar
year Navigation Date through June 30, 2005.

      "Specifications" means the qualities, sizes, conditions and other
specifications for Minntac Acid Pellets as set forth on Schedule A; for Minntac
Fluxed Pellets as set forth on Schedule B; and for Keetac Acid Pellets as set
forth on Schedule C, as such Schedules are amended from time to time by Seller,
subject to the consent of Buyer, which consent shall not be unreasonably
withheld.

      "Ton," "net ton" and "NT" each means 2,000 pounds avoirdupois in weight.

      "USS" shall have the meaning assigned in the preamble hereto.

                           ARTICLE II - PELLET SALES

      2.1      QUANTITIES.

      (a) Subject to the terms hereof, Seller agrees to sell and deliver to
Buyer, and Buyer agrees to purchase and accept delivery of: (i) [****] tons of
Pellets for delivery into winter build storage piles (hereinafter "Storage
Piles") during the 2004 Navigation Season for consumption during the first
quarter of 2005, with [****] tons to be designated for the production of [****]
tons of Rounds for USS and to be subject to a deferred payment obligation with
[****] of the price due January 17, 2005, [****] of the price due February 15,
2005 and the remaining [****] of the price due March 15, 2005 and with the
balance ([****] tons) to be paid for at the time of delivery, and (ii) [****]
tons for delivery during the second quarter of 2005, with [****] tons designated
for production of [****] tons of Rounds for USS and with the entire [****] tons
to be paid for at the time of delivery. Buyer may not resell or trade Pellets,
except fines and/or screenings, unless prior written consent is obtained from
Seller.

      2.2 SCHEDULES.

      Buyer agrees to use reasonable efforts to schedule Pellets for delivery at
as uniform a rate as practicable from month to month; provided, however, that in
no event will Buyer be obligated to disrupt its normal course of business or
incur any additional expense in exerting such efforts.

      2.3 PRICES.

      (a) The delivered prices for Pellets used to produce rounds for USS shall
be $[****] for Fluxed Pellets and $[****] for Acid Pellets.

      (b) The delivered prices for Pellets delivered to REP hereunder that are
not used to produce Rounds for USS (approximately [****] tons) shall be
$[****]/ton for Fluxed Pellets and $[****]/ton for Acid Pellets.

      (c) USS shall deliver approximately [****]% Fluxed Pellets and [****]%
Acid Pellets under this Agreement.

                                       3
<PAGE>

      (d) To the extent legally permissible, all present and future taxes
imposed by any federal, state, local or foreign authority which [****] may be
required to pay or collect, upon or with reference to the sale, purchase,
delivery, storage, use or consumption of Pellets, including taxes upon or
measured by the receipts therefrom (except net income and equity franchise
taxes), shall be for the account of [****].

      (e) The weights used for purposes of the bill of lading by the lake
carrier transporting Pellets to Lorain Works shall be the basis for determining
the amount of Pellets actually sold hereunder, and such weights shall be
conclusive as to the quantities of Pellets sold hereunder; provided, however,
that if Buyer should encounter material discrepancies in weights measured by the
lake carrier and weights measured by Buyer, Buyer and Seller shall meet to
discuss reasons for such discrepancies and whether remedial action is necessary.

      2.4 INVOICES AND PAYMENT.

      (a) With respect to the [****] tons of Pellets for delivery into winter
build storage piles (hereinafter "Storage Piles") during the 2004 Navigation
Season for consumption during the first quarter of 2005, [****] tons shall be
designated for the production of [****] tons of Rounds for USS and shall be
subject to a deferred payment obligation with [****] of the price due January
17, 2005, [****] of the price due February 15, 2005 and the remaining [****] of
the price due March 15, 2005. The balance of said [****] tons ([****] tons)
shall be billed at the time of delivery with payment due on the next Settlement
Date.

      (b) With respect to the [****] tons of Pellets for delivery during the
second quarter of 2005, [****] tons shall be designated for the production of
[****] tons of Rounds for USS, and the entire [****] tons shall be billed at the
time of delivery with payment due on the next Settlement Date.

      (c) Subject to Article 2.11 below, payment shall be made for Pellets
invoiced during each Settlement Period (as hereinafter defined) on the Payment
Date (as hereinafter defined). A "Settlement Period" shall be the period falling
from [****] (the "First Settlement Period") and the period from [****] (the
"Second Settlement Period"). On the day following each Settlement Period (i.e.,
[****]) (the "Settlement Date"), Seller shall provide to Buyer a summary of all
payments to be made on the Payment Date consistent with the invoices issued in
accordance with the applicable provisions of Articles 2.5(a) and 2.5(b). The
Payment Date for the First Settlement Period shall be on the immediately
succeeding [****] and the Payment date for the Second Settlement Period shall be
on the immediately succeeding [****]. In the event a Payment Date falls on a
holiday, the Payment Date shall be the day immediately following. Any deliveries
of Pellets for which an invoice is not available prior to the otherwise
applicable Settlement Date (e.g., due to delays in the normal invoice cycle)
will be settled on the next Settlement Date.

      (d) On or before [****] and [****], USS shall determine the amount of
Rounds produced by Republic and delivered to USS during the prior [****] and
shall reconcile billings under this Agreement to ensure that the correct number
of tons is billed hereunder at the lower price accorded to tons utilized for
production of Rounds for USS. Such reconciliation shall use the following
formula: [****]. A reconciled invoice shall be provided to Republic referencing

                                       4
<PAGE>

the credit or debit arising out of the tonnage reconciliation. Any payment owed
by either party after expiration of the Term shall be paid on the next
Settlement Date after issuance of the reconciled invoice.

      (e) Each partial delivery or installment of Pellets shall be deemed to be
sold under a separate agreement, and no Default by Seller of or with respect to
any partial delivery or installment shall entitle Buyer to treat this Agreement
as breached or repudiated in regard to any balance or installment with respect
to which there is no Default or breach.

      (f) Buyer shall make payment in full of the amount due under each invoice
in strict compliance with the payment terms as set forth in this Agreement
without any deduction for any discount or credits, contra or setoffs of any kind
or amount whatsoever unless expressly authorized in writing by Seller prior to
the Settlement Date relating to such invoice(s). Any delinquent invoice(s) not
paid when due shall bear interest on the unpaid amount at the Late Payment Rate
specified in this Agreement.

      (f) Buyer agrees to furnish Seller's Treasury Department on an ongoing
basis (1) unaudited quarterly financial statements of its operations, including
income statements, balance sheets, cash flow statements and borrowing bases, all
in substantially the form presented in its Business Plan, (2) audited year-end
financial statements and (3) such other financial data or information as may be
required to reasonably assure Seller of Buyer's continuing ability to perform
this Agreement and comply fully with its payment obligations at all times as to
both existing and future product shipments hereunder. For purposes of this
subsection (f), Seller confirms its obligations under that certain
Confidentiality Agreement dated as of August 16, 2002 by and between Seller and
Buyer. Any failure of Buyer to timely provide any of the documents or
information required by this paragraph shall be deemed a material breach of this
Agreement that entitles Seller to invoke any of the remedies available to Seller
under this Agreement and/or at law or in equity. The parties agree that this
Article 2.5(f), or any dispute arising hereunder, shall be excluded from Article
4.3 hereof.

      (g) In the event, in Seller's sole judgment, of any material adverse
change in the financial condition of Buyer, or deterioration in its liquidity
and/or then current ability to discharge its existing or future payment
obligations hereunder (a "Material Adverse Change"), Seller shall have the right
to require Buyer to provide additional security for its obligations hereunder.
The form, nature and sufficiency of such additional security shall be in
Seller's sole and absolute discretion. If Buyer does not provide such additional
security within 10 days of written notice from Seller that a Material Adverse
Change has occurred and that additional security is required, Seller may (i)
suspend further shipments of Pellets until such additional security is provided,
(ii) require Buyer to pay for future deliveries of Pellets on a cash-on-delivery
basis, or (iii) immediately terminate this Agreement. Seller agrees that minor
deviations from the Business Plan will not be deemed to be a Material Adverse
Change hereunder unless such minor deviations continue for three or more
consecutive calendar months.

      2.5 DELIVERY, TITLE AND RISK OF LOSS.

      (a) All Pellets covered hereunder shall be tendered by Seller to Buyer
F.O.B. end of boom of self unloading vessel in full vessel quantity at the
Lorain Works facility, unless

                                       5
<PAGE>

otherwise agreed by the parties prior to the shipment of the Pellets. Buyer
shall be responsible for providing a safe berth at Lorain Works for all vessels
making deliveries hereunder. Vessels in excess of 767 feet in length shall not
be used to make deliveries hereunder, unless agreed to in advance in writing by
Buyer. Title and risk of loss and damage to the Pellets shall pass from Seller
to Buyer when the Pellets are delivered in accordance with this Article 2.5.

      2.6 TERMS AND CONDITIONS OF SALE.

      (a) In the event of a conflict between the terms and conditions of this
Agreement and the terms or conditions contained in any notice, shipment,
specifications, purchase order, sales order, acknowledgement or other document
which may be used in connection with the transactions contemplated by this
Agreement, the terms and conditions of this Agreement shall supersede and
govern, unless expressly waived in accordance with Article 4.14.

      2.7 WARRANTY.

      (a) All Pellets sold by Seller hereunder will conform to the
Specifications. OTHER THAN AS AFORESAID, SELLER MAKES NO WARRANTY OF ANY KIND,
EXPRESS OR IMPLIED, AND ALL IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE OR OTHERWISE ARE HEREBY EXPRESSLY DISCLAIMED BY SELLER AND
EXCLUDED HEREUNDER. Seller shall not be liable for any incidental or
consequential damages, losses or expenses based upon, resulting from, or arising
out of any use of, or the inability to use, the Pellets for any purpose
whatsoever.

      (b) Without limiting the generality of Article 2.7(a), Seller makes no
warranty with respect to and shall have no liability to Buyer in any case where
Pellets satisfy the Specifications. If Pellets do not satisfy the Specifications
but reasonably can be used by Buyer, then Seller shall advise Buyer at time of
shipment and the parties shall meet and use all reasonable efforts to agree upon
a reasonable price adjustment and such price adjustments shall be the only
remedy for such variations available to Buyer or Seller. Notwithstanding the
foregoing, Pellets that do not meet the Specifications and which may not
reasonably be used by Buyer, may be rejected by Buyer at Seller's expense.

      2.8 CROSS-DEFAULT; SETOFF; RIGHT TO SUBSTITUTE NEW TERMS

      (a) Any Default by Republic under the Coke Supply Agreement, the Rounds
Supply Agreement or the Services Agreement shall be deemed a Default of Republic
under this Agreement.

      (b) Only in the event of a payment Default, which is deemed as any failure
by Republic at any time to make a payment in full when due under the Pellet
Supply Agreement, under the Coke Supply Agreement and/or under Article 3.2 of
the Services Agreement (for any reason other than exercising its rights upon a
payment Default by USS), USS may (i) defer payment of any amounts due Republic
under the Rounds Supply Agreement and/or the Services Agreement until such time
as any and all delinquent amounts due and owing USS under this Agreement, the
Coke Supply Agreement and/or the Services Agreement (the "Delinquent Amount")
are paid, and/or (ii) deliver to Republic a `Notice of Intent to Effect
Set-off.' Provided that Republic has not remitted to USS the Delinquent Amount
within 5 days of Republic's receipt of the Notice of Intent to Effect Set-off,
USS may, on the 5th day following the delivery of such Notice of Intent to
Effect Set-off, set-off the Delinquent Amount against the amounts owed by USS to
Republic under the Rounds Supply Agreements and/or the Services Agreement

                                       6
<PAGE>

as of the date of such Notice. If any Delinquent Amount (remaining due after
USS's application of set-off hereunder) is not paid in full within [****] days
following the delivery of such Notice of Intent to Effect Set-off, USS shall
have the right to suspend further shipments of Pellets to Buyer until the
Delinquent Amount (including any other delinquent amounts owed to USS under this
Agreement, the Coke Supply Agreement and/or the Services Agreement that accrue
after issuance of the Notice) are paid in full. Interest on the Delinquent
Amount shall accrue at the Late Payment Rate specified in this Agreement.

      (c) In the event that the aggregate amounts due USS in connection with
Republic's purchases of Pellets hereunder and Republic's purchases of coke
(including without limitation Coke) under the Coke Supply Agreement at any time
exceed by $[****] or more the amount due Republic in connection with USS's
purchases of Rounds under the Rounds Supply Agreement (the "Excess"), Republic
shall remit to USS an amount equal to the Excess within three days of the
Settlement Date immediately succeeding the date that such Excess occurs. If the
Excess is not paid in full by such date, USS shall have the right to withhold
and/or setoff against the Excess any amounts due from USS to Republic under the
Services Agreement. If the Excess is not paid in full within [****] days of such
Settlement Date, USS shall have the right to suspend further shipments of
Pellets to Buyer until the Excess is paid in full; provided, that Seller agrees
not to suspend such shipments during such time so long as payment on deliveries
of Pellets is made by Buyer on a cash-on-delivery basis. Interest on the Excess
shall accrue at the Late Payment Rate specified in this Agreement.

      (d) Notwithstanding any provision herein to the contrary (including
without limitation the provisions of Article 2.4 hereof), in the event that (i)
USS ceases operations at the Pipemill either on a temporary or permanent basis,
(ii) USS sells or otherwise transfers (or enters into an agreement to sell or
transfer) ownership of the Pipemill assets or operations to a third party, or
(iii) USS's purchases of Rounds under the Rounds Supply Agreement and/or
utilities under the Services Agreement are reduced for any reason such that the
Excess exceeds $[****] in [****] consecutive Settlement Periods, then USS shall
have the right to substitute new or revised payment terms and conditions for the
payment terms which are then in effect hereunder such that payments due by Buyer
to USS hereunder remain secured at all times.

      (e) Republic hereby agrees to continue to perform fully its obligations
hereunder and under the Rounds Supply Agreement, under the Coke Supply Agreement
and under the Services Agreement notwithstanding the exercise by USS of any of
its rights hereunder or under Article 2.4.

                       ARTICLE III - TERM AND TERMINATION

      3.1 TERM.

      This Agreement shall be effective as of the date set forth in the preamble
hereto and shall remain in full force and effect through June 30, 2005:

            (i)   By written mutual consent of the parties at any time;

            (ii)  By either party if the other party is in Default under any of
                  the provisions of this Agreement (except as otherwise
                  expressly provided in items (iv),

                                       7
<PAGE>

                  (v) and (vi) below) and fails to correct such Default within
                  thirty (30) days of written notice of such Default;

            (iii) By USS pursuant to Article 2.4(g) hereof in the case of a
                  Material Adverse Change;

            (iv)  By USS if Republic, at any time, fails (A) to make any payment
                  when due under this Agreement, (B) to comply with the
                  applicable credit and/or payment terms (as established or
                  adjusted hereunder) or (C) to provide the financial statements
                  and information pursuant to Article 2.5(g) hereof; or

            (v)   By Republic, upon 90 days' prior written notice, if USS
                  terminates the Rounds Supply Agreement for any reason other
                  than default by Republic thereunder.

In addition to the rights of USS to terminate this Agreement pursuant to
subsection 3.1(iv) above, Seller shall have the right, upon the occurrence of
any of the events set forth therein, (X) to suspend production and/or refuse to
make further shipments or deliveries of Pellets or otherwise suspend its further
performance under this Agreement or (Y) to declare immediately due and payable
all then outstanding and unpaid invoices covering Pellets previously delivered
hereunder.

As used herein, "Default" means failure of either party to perform, keep or
observe any material obligation, provision, warranty or condition contained
herein, unless such performance is otherwise excused by the terms of this
Agreement.

      3.2 TERMINATION.

      Seller and Buyer agree that upon and after termination of this Agreement:

      (i) Buyer shall remain obligated to make any payment that became due to
Seller hereunder prior to termination.

      (ii) Liabilities of any party arising from any act, Default or occurrence
prior to termination shall remain with such party.

      (iii) The parties' rights and obligations under Articles 2.4, 2.7, 4.1,
4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.12, 4.15, 4.16 and this Article III shall
survive the termination of this Agreement.

                           ARTICLE IV - MISCELLANEOUS

      4.1 PAYMENT ERRORS.

      (a) If either Buyer or Seller believes that there has been an error in an
amount paid or the timing of any payment hereunder, then such party shall notify
the other party of such alleged error and shall provide such written evidence of
the error as is available at the time of such notice. Each party shall provide
the other with sufficient records relating to the matter so as to permit the
parties to attempt to resolve the inconsistency.

                                       8
<PAGE>

      (b) Following the determination of whether an error occurred, any
overpayment or underpayment found shall be remedied by the party that benefited
from such error.

      (c) Notwithstanding the foregoing, neither party may question the
accuracy, correctness, timing or amount of any payment under this Agreement
unless it notifies the other party of its disagreement within the 12 months
immediately following the date such payment was due.

      4.2 DISPUTE RESOLUTION.

      At any time and from time to time, if the parties are unable to resolve a
dispute concerning Buyer's or Seller's performance or nonperformance of their
obligations under this Agreement (excepting any disputes excluded herefrom),
Buyer or Seller, as the case may be, shall provide written notice to the other
of such dispute as provided in Article 4.8 hereof. It is mutually agreed that
any Default by Buyer in its payment obligations hereunder (or any dispute
relating thereto), and/or any dispute relating to USS's exercise of its rights
under Article 2.8 hereof shall not be subject to (and are excluded from) the
provisions of this Article 4.2; it being agreed that any such excluded disputes
(as aforesaid) shall be pursued and adjudicated by the parties in a court of
competent jurisdiction. Any dispute covered by this Article 4.2 shall be
resolved by using the procedures for Mediation and Arbitration set forth below:

      (a) Mediation. At any time after a party has provided a written notice of
dispute to the other party, but prior to the time that either party commences
arbitration pursuant to Article 4.2(b) herein, the parties may agree to submit
the dispute to non-binding mediation under terms and conditions satisfactory to
both parties.

      (b) Arbitration. At any time after a party has provided a written notice
of dispute to the other party, including at any time during any non-binding
mediation agreed to by the parties, either party may submit the matter in
dispute to a pre-designated arbitrator or, in the event such arbitrator has not
been selected or is unavailable, to a three member arbitral panel to which each
Party shall appoint one member and those two members shall appoint a third
member. Such arbitration shall be governed by the CPR Rules for Non-Administered
Arbitration of Business Disputes. Pending the issuance of an arbitral decision,
the Parties shall continue their full and normal operations and obligations in
accordance with this Agreement. All arbitral awards for the payment of money
and/or for any retroactive adjustment of any interim prices paid hereunder shall
accrue interest at the Late Payment Rate starting from the date on which any
amount is due or the date on which the interim payment was due.

      (c) Consent to Enforceability. Each of the parties consents and agrees
that any arbitral award rendered pursuant to Subsection 4.2(b) shall be final,
non-appealable and binding against the parties and their respective assets, and
may be enforced by any court of competent jurisdiction.

      4.3 RECORDS.

      Seller shall maintain such detailed and accurate records relating to the
sales of Pellets hereunder as shall be necessary for the calculation of amounts
payable under Articles 2.5. At all times on or before the date that is 12 months
after the date of termination of this Agreement,

                                       9
<PAGE>

representatives of Buyer and its auditors shall be entitled, at Buyer's expense,
to inspect and audit such records and accounts and to consult with Seller's
personnel in a reasonable, non-intrusive manner upon reasonable notice and
during business hours. Seller shall have the right to require that any audit be
conducted by a mutually agreeable independent auditor and that the details of
the information examined in such audit be kept confidential from Buyer, except
to the extent necessary to resolve any controversy that is pursued in good
faith. Such audit expense shall be borne by Buyer.

      4.4 CONFIDENTIALITY.

      (a) Buyer and Seller acknowledge that all information about the
businesses, properties, finances, prospects, marketing, processes, products,
methods, computer programs, procedures, machinery, apparatus or trade secrets
owned, or held or used (including under license from or agreement with third
parties) by the other that is disclosed to Buyer or Seller, as the case may be,
during the course of performing its obligations under this Agreement is the
property of, and is proprietary and confidential to the disclosing party (the
"Proprietary Information").

      (b) Buyer and Seller agree that they shall use reasonable efforts not to
make any disclosure of the other's Proprietary Information (including methods or
concepts utilized therein other than those commonly known to professionals in
the field) to any person other than officers, employees and agents of and
consultants to Buyer or Seller to whom such disclosure is necessary or
convenient for performance of its obligations hereunder and except as may be
required by applicable legal requirements or by a court of competent
jurisdiction. Buyer and Seller shall appropriately notify each officer,
employee, agent and consultant to whom any such disclosure of the other's
Proprietary Information is made that such disclosure is made in confidence and
shall be kept in confidence by such Person.

      (c) Each of Buyer and Seller agrees to use diligent efforts in accordance
with customary and reasonable commercial practice and at least with the same
degree of skill and care that it would manifest in protection of its own
proprietary and confidential property to protect the other's Proprietary
Information.

      (d) Each of Buyer and Seller agrees to notify the other immediately in the
event that it becomes aware of the unauthorized possession or use of the other's
Proprietary Information (or any part thereof) by any third Person, including any
of its officers, employees, agents or consultants. Each of Buyer and Seller
further agrees to cooperate with the other in connection with its efforts to
terminate or prevent such unauthorized possession or use of such Proprietary
Information. Seller or Buyer, as the case may be, shall pay the nonproprietary
party's reasonable out-of-pocket expenses in so cooperating, unless the
unauthorized possession or use of the Proprietary Information resulted from the
fault or negligence of such nonproprietary party.

      (e) Notwithstanding any other provision of this Agreement, the obligation
of Buyer and Seller to maintain the confidentiality of the other's Proprietary
Information shall not apply to any portion of such Proprietary Information that:

                                       10
<PAGE>

            (i)   was in the public domain at the time of Buyer's or Seller's
                  disclosure to the other;

            (ii)  enters the public domain through no fault of the
                  nonproprietary party;

            (iii) was communicated to the nonproprietary party by a third party
                  free of any obligation of confidence known to the
                  nonproprietary party; or

            (iv)  was developed by officers, employees or agents of or
                  consultants to the nonproprietary party independently of and
                  without reference to the Proprietary Information;

provided, however, that Proprietary Information which is specific shall not be
considered to be within the exception provided by this Article 4.4(e) merely
because it is embraced by general information in the public domain; provided
further, that any combination of features within the Proprietary Information
shall not be deemed within such exception merely because individual features are
within the public domain, but only if the combination itself is within the
public domain.

      4.5 SEVERABILITY.

      In case anyone or more of the provisions contained in this Agreement is
adjudged to be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein shall
not in any way be affected or impaired thereby, except to the extent necessary
to avoid an unjust or inequitable result.

      4.6 RIGHTS AND REMEDIES; NO CONSEQUENTIAL DAMAGES.

      The rights and remedies granted under this Agreement shall not be
exclusive but shall be in addition to all other rights and remedies available at
law or in equity, including, but not limited to, claims for breach of contract,
except that Buyer and Seller agree that in no event shall either party be liable
to the other for any indirect, special or consequential damages or lost profits
as a result of a breach of any provision of this Agreement.

      4.7 COSTS AND EXPENSES.

      Each of Buyer and Seller shall bear its own expenses incurred in
connection with the negotiation, preparation and execution of this Agreement.

      4.8 NOTICES.

      All notices or other communications pertaining to this Agreement shall be
deemed sufficient if made in writing and delivered (i) in person to an office of
the intended recipient, or (ii) by registered or certified mail, return receipt
requested; or (iii) by overnight delivery service which provides proof of
delivery; or (iv) by telecopy, with a duplicate copy sent via first class mail,
postage prepaid, addressed as follows or to such other address as either party
shall designate in writing:

                                       11
<PAGE>

                  If to Seller:

                           UNITED STATES STEEL CORPORATION
                           600 Grant Street - Room 411
                           Pittsburgh, Pennsylvania 15219-2800
                           Attn: General Manger - Raw Materials
                           Tel: (412) 433-6441
                           Fax: (412) 433-3624

                  If to Buyer:

                           REPUBLIC ENGINEERED PRODUCTS, INC.
                           3770 Embassy Parkway
                           Akron, Ohio 44333-8367
                           Attn: Vice President of Purchasing
                           Tel: (330) 670-3172
                           Fax: (330-670-7006)

      4.9 ASSIGNMENT.

      (a) Except as provided in Article 4.9(c), neither party can without the
prior written consent of the other assign any of its rights or benefits or
delegate any of its duties or obligations under this Agreement, and any
attempted assignment or delegation which is not permitted under Article 4.9(c)
shall be null, void and without effect; provided however, Buyer may grant a
security interest in the rights, benefits, duties and obligations under this
Agreement, without the consent of Seller. Buyer shall provide Seller written
notice of the granting or revision of any such security interests.

      (b) The rights, benefits, duties and obligations of each party hereto
shall inure to the benefit of, and be binding upon, any successors, assigns or
delegates permitted under Article 4.9(c).

      (c) Either party hereto may delegate any of its duties or obligations
under this Agreement to any person, but except as otherwise provided in this
Agreement such party shall remain liable for the full performance of such duties
and obligations. Either party hereto may assign or delegate any of its rights,
benefits, duties or obligations hereunder (i) to any person if it has received
the prior written consent of the other party, which consent shall not be
unreasonably withheld, conditioned or delayed, (ii) to its legal successor if it
merges (whether or not it is the surviving corporation) or consolidates with one
or more other corporations or (iii) to any person to whom either party has made
any sale, lease, transfer or other disposition of all or substantially all of
its assets; provided, however, that neither party may make an assignment or
delegation described in clauses (ii) and (iii) above unless there are delivered
to the other party such written assumptions, affirmations and/or legal opinions
as such other party may reasonably request to preserve its rights and remedies
under this Agreement.

                                       12
<PAGE>

      4.10 COUNTERPARTS.

      This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute a
single instrument.

      4.11 HEADINGS.

      The headings contained in this Agreement are for convenience of reference
only and do not modify or affect in any way the meaning or interpretation of
this Agreement.

      4.12 GOVERNING LAW.

      This Agreement shall be construed and enforced in accordance with, and
governed by, the internal laws of the State of Ohio, excluding its conflict of
laws provisions.

      4.13 NO THIRD PARTY RIGHTS.

      This Agreement is intended to be solely for the benefit of the parties
hereto and is not intended to confer any benefits upon, or create any rights in
favor of, any Person other than the parties hereto, except as expressly provided
to the contrary elsewhere in this Agreement.

      4.14 WAIVER AND AMENDMENTS.

      No waiver shall be deemed to have been made by either party of any of its
rights under this Agreement unless the same shall be in a writing that expressly
refers to this Article 4.15 and is signed on its behalf by its authorized
officer. Any such waiver shall constitute a waiver only with respect to the
specific matter described in such writing and shall in no way impair the rights
of the party granting such waiver in any other respect or at any other time.
This Agreement shall not be amended or modified except by an instrument in
writing signed by the party against whom enforcement is sought.

      4.15 FORCE MAJEURE.

      (a) Except for obligations to make payments hereunder, neither party
hereto shall be liable for any failure to perform the terms of the Agreement
when such failure is due to Force Majeure. "Force Majeure" means acts of God,
strikes, lockouts, or other labor disputes or disturbances, civil disturbances,
arrests and restraint from rulers or people, interruptions or terminations by or
as a result of government or court action or orders, or present and future valid
orders of any regulatory body having jurisdiction, acts of the public enemy,
wars, riots, blockades, insurrections, inability to secure or delay in securing
labor or materials by reason of allocations promulgated by authorized
governmental agencies, epidemics, landslides, lightning, earthquakes, fire,
storm, floods, washouts, explosions, breakdowns or accidents, inability to
obtain transportation services, or any other cause, whether of the kind
enumerated or otherwise, not reasonably within the control of the party claiming
Force Majeure. The Force Majeure shall, so far as possible, be remedied with all
reasonable dispatch. The settlement of strikes or lockouts or other labor
disputes or disturbances shall be entirely within the discretion of the party
having the difficulty, and the above requirement that any Force Majeure shall be
remedied with all reasonable dispatch shall not require the settlement of
strikes, lockouts, or labor disputes or

                                       13
<PAGE>

disturbances by acceding to the demands of any opposing party therein when such
course is inadvisable in the discretion of the party having the difficulty.

      (b) The party whose performance is affected or who has reason to believe
such performance may be affected by reason of Force Majeure shall as promptly as
possible give notice thereof to the other party and shall confirm such notice in
writing if requested, giving the particulars of the event, including supporting
documentation if available. The party so affected shall also take reasonable
steps to resume performance hereunder with the least possible delay.

      4.16 RELEASE.

      (a) As part of the consideration forming the basis for the parties
entering into this Agreement and the related Coke Supply Agreement and Rounds
Supply Agreement, and other good and valuable consideration the receipt and
sufficiency of which is hereby acknowledged, USS and REP do hereby
unconditionally remise, release and forever discharge each other of and from any
and all open and pending claims and disputes arising out of or related to the
2002 Pellet Supply Agreement that were in existence as of the Effective Date of
this Agreement, including, but not limited to, any claim by REP that USS was
required to provide Pellets during 2004 as winter build for use during 2005;
provided however that the foregoing release shall not be deemed to release any
routine payment, weight adjustment and/or quality claims arising in the ordinary
course of business under the 2002 Pellet Supply Agreement, or any claims
constituting a material breach or default by either party thereunder that arise
or occur after the date on which this Agreement is executed by all parties, but
prior to the expiration of the 2002 Pellet Supply Agreement.

      (b) Nothing contained in Article 4.16 (a) above; or elsewhere in this
Agreement shall alter or affect REP's or USS's respective rights, or release
either party of their respective obligations under the 2002 Pellet Supply
Agreement except as otherwise expressly modified or provided to the contrary
herein.

      4.17 ENTIRE AGREEMENT.

      This Agreement (including the Schedules hereto) sets forth the entire
understanding and agreement between the parties as to the matters covered herein
and supersedes and replaces any prior understanding, agreement or statement of
intent, in each case written or oral.

                                       14
<PAGE>

      IN WITNESS WHEREOF, this Agreement has been executed and delivered to be
effective on the date first above written.

UNITED STATES STEEL CORPORATION            REPUBLIC ENGINEERED PRODUCTS, INC.

By: /s/ Karl F. Csensich                   By: /s/ John B. George
    --------------------------------           --------------------------------
Name: Karl F. Csensich                     Name: John B. George
Title: General Manager - Raw Materials     Title: VP of Purchasing

                                       15
<PAGE>

                                   SCHEDULE A

[****]

                                   Schedule A
                                  Page 1 of 1
<PAGE>

                                   SCHEDULE B

[****]

                                   Schedule B
                                  Page 1 of 1
<PAGE>

                                   SCHEDULE C

[****]

                                   Schedule C
                                   Page 1 of 1

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