Document:

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                                                                    Exhibit 4.17

                         CITY OF WEIRTON, WEST VIRGINIA

                                       AND

                 J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION

                                   as Trustee

                            ------------------------
                                     FORM OF

                               INDENTURE OF TRUST
                            ------------------------

                        Dated as of ____________ __, 2002
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                                TABLE OF CONTENTS

             (This Table of Contents is not a part of the Indenture
               of Trust and is only for convenience of reference.)
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PARTIES.........................................................................................................    1
RECITALS........................................................................................................    1
GRANTING CLAUSES................................................................................................    2

ARTICLE I  DEFINITIONS..........................................................................................    3
     Section 1.01  Definition of Terms..........................................................................    3

ARTICLE II  AUTHORIZATION AND ISSUANCE OF BONDS.................................................................   17
     Section 2.01  Authorized Amount of Bonds...................................................................   17
     Section 2.02  Purposes for Which Bonds May Be Issued.......................................................   17
     Section 2.03  Issuance and Form of Bonds; Legend...........................................................   17
     Section 2.04  Execution; Limited Obligations...............................................................   18
     Section 2.05  Authentication...............................................................................   19
     Section 2.06  Securities Depository Provisions.............................................................   19
     Section 2.07  Temporary Bonds..............................................................................   20
     Section 2.08  Delivery of the Bonds........................................................................   20
     Section 2.09  Mutilated, Lost, Stolen or Destroyed Bonds...................................................   22
     Section 2.10  Interchangeability of Bonds; Negotiability...................................................   22
     Section 2.11  Registration, Transfer and Exchange..........................................................   23
     Section 2.12  Wire Instructions............................................................................   24
     Section 2.13  Discontinuance of Book-Entry System..........................................................   24

ARTICLE III  REDEMPTION OF BONDS BEFORE MATURITY; TENDER OPTION RIGHTS OF BONDHOLDERS; PURCHASE IN LIEU
OF REDEMPTION...................................................................................................   25
     Section 3.01  Mandatory Redemption; Extraordinary Redemption; Optional Redemption..........................   25
     Section 3.02  Notice of Redemption or Purchase.............................................................   28
     Section 3.03  Payment of Redeemed Bonds....................................................................   28
     Section 3.04  Tender Option Right of Holders...............................................................   29
     Section 3.05  Purchase in Lieu of Redemption...............................................................   32
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ARTICLE IV  BOND FUND, REBATE FUND, REVENUES AND APPLICATION THEREOF............................................   33
     Section 4.01  Establishment of Bond Fund...................................................................   33
     Section 4.02  Moneys to be Held in Trust...................................................................   33
     Section 4.03  Payments into the Bond Fund..................................................................   33
     Section 4.04  Use of Moneys in the Bond Fund...............................................................   33
     Section 4.05  Investment of Moneys; Tax Covenants..........................................................   34
     Section 4.06  Nonpresentment of Bonds......................................................................   34
     Section 4.07  Establishment of Rebate Fund.................................................................   35
     Section 4.08  Additional Funds.............................................................................   37

ARTICLE V  GENERAL COVENANTS AND PROVISIONS.....................................................................   37
     Section 5.01  Authority of Issuer; Validity of Indenture and Bonds.........................................   37
     Section 5.02  Performance of Covenants.....................................................................   37
     Section 5.03  Payment of Principal, Premium and Interest...................................................   37
     Section 5.04  Revenues from Agreement......................................................................   37
     Section 5.05  Priority of Lien of Indenture................................................................   38
     Section 5.06  Enforcement of Duties and Obligations of the Company.........................................   38
     Section 5.07  Recordation of Indenture and Agreement; Filing of Security Instruments.......................   38
     Section 5.08  Rights Under Agreement, Deeds of Trust and the Security Agreement............................   38
     Section 5.09  List of Bondholders..........................................................................   38
     Section 5.10  Cancellation.................................................................................   39
     Section 5.11  Payments Due on Saturdays, Sundays and Holidays..............................................   39
     Section 5.12  Instrument of Further Assurance..............................................................   39
     Section 5.13  Undertaking to Provide Ongoing Disclosure....................................................   39

ARTICLE VI  DISCHARGE OF INDENTURE..............................................................................   40
     Section 6.01  Discharge of Indenture.......................................................................   40
     Section 6.02  Defeasance of Bonds..........................................................................   40

ARTICLE VII  DEFAULTS AND REMEDIES..............................................................................   41
     Section 7.01  Events of Default............................................................................   41
     Section 7.02  Acceleration.................................................................................   42
     Section 7.03  Other Remedies; Rights of Owners of Bonds....................................................   42
     Section 7.04  Right of Owners of Bonds to Direct Proceedings...............................................   43
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     Section 7.05  Appointment of Receivers.....................................................................   43
     Section 7.06  Waiver.......................................................................................   43
     Section 7.07  Application of Moneys........................................................................   43
     Section 7.08  Remedies Vested in Trustee...................................................................   45
     Section 7.09  Rights and Remedies of Owners of Bonds.......................................................   45
     Section 7.10  Termination of Proceedings...................................................................   45
     Section 7.11  Waivers......................................................................................   46

ARTICLE VIII  THE TRUSTEE.......................................................................................   46
     Section 8.01  Appointment of Trustee and Acceptance of Duties..............................................   46
     Section 8.02  Fees, Charges and Expenses of Trustee........................................................   49
     Section 8.03  Intervention by Trustee......................................................................   49
     Section 8.04  Notice to Owners of Bonds if Default Occurs..................................................   49
     Section 8.05  Merger or Consolidation of Trustee...........................................................   49
     Section 8.06  Resignation by the Trustee...................................................................   50
     Section 8.07  Removal of the Trustee.......................................................................   50
     Section 8.08  Appointment of Successor Trustee by the Bondholders; Temporary Trustee.......................   50
     Section 8.09  Concerning Successor Trustees................................................................   51
     Section 8.10  Successor Trustee as Custodian of Funds and Paying Agent.....................................   51
     Section 8.11  Limitation on Trustee's Responsibilities Respecting Arbitrage................................   52

ARTICLE IX  SUPPLEMENTAL INDENTURES.............................................................................   52
     Section 9.01  Supplemental Indentures Not Requiring Consent of Bondholders.................................   52
     Section 9.02  Supplemental Indentures Requiring Consent of Bondholders.....................................   53
     Section 9.03  Bond Counsel Opinion; Consent of Company to Supplemental Indentures..........................   54
     Section 9.04  Effect of Supplemental Indentures............................................................   54
     Section 9.05  Modifications by Unanimous Action............................................................   54

ARTICLE X  AMENDMENTS TO AGREEMENT..............................................................................   55
     Section 10.01  Amendments to Agreement Not Requiring Consent of Bondholders................................   55
     Section 10.02  Amendments to Agreement Requiring Consent of Bondholders....................................   55

ARTICLE XI  REMARKETING AGENT...................................................................................   56
     Section 11.01  Qualifications of Remarketing Agent.........................................................   56
     Section 11.02  Successor Remarketing Agent by Merger, Consolidation, Etc...................................   56
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     Section 11.03  Resignation of Remarketing Agent............................................................   56
     Section 11.04  Removal of Remarketing Agent................................................................   56
     Section 11.05  Appointment of Successor Remarketing Agent..................................................   56

ARTICLE XII  MISCELLANEOUS......................................................................................   57
     Section 12.01.  Consent of Bondholders.....................................................................   57
     Section 12.02  Limitation of Rights........................................................................   57
     Section 12.03  Severability................................................................................   58
     Section 12.04  Notices.....................................................................................   58
     Section 12.05  Counterparts................................................................................   59
     Section 12.06  Applicable Law..............................................................................   59
     Section 12.07  No Recourse.................................................................................   59
     Section 12.08  Survival....................................................................................   60
     Section 12.10  Binding Effect..............................................................................   60
     Section 12.11  Intercreditor Agreement and Collateral Agency Agreement.....................................   60
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                           FORM OF INDENTURE OF TRUST

                  THIS INDENTURE OF TRUST (the "Indenture"), dated as of
____________ __, 2002, is between the CITY OF WEIRTON, WEST VIRGINIA, a public
corporation and an incorporated municipality duly organized and existing under
the constitution and laws of the State of West Virginia (the "Issuer"), and J.P.
MORGAN TRUST COMPANY, NATIONAL ASSOCIATION, a banking association organized and
existing under and by virtue of the laws of the United States of America, with a
corporate trust office located at Pittsburgh, Pennsylvania (the "Trustee").

                               W I T N E S S E T H

                  WHEREAS, pursuant to and in accordance with the provisions of
The Industrial Development and Commercial Development Bond Act, Chapter 13,
Article 2C, of the West Virginia Code of 1931, as amended (the "Act"), by
Resolution of the City Council of the Issuer, and in furtherance of the purposes
of the Act, Issuer proposes to refund certain of its outstanding Pollution
Control Revenue Refunding Bonds (Weirton Steel Corporation Project) Series 1989
(the "Series 1989 Bonds") issued to finance (or refinance) the acquisition,
construction and installation of certain pollution control equipment which is
presently leased by the Issuer to, or owned by, Weirton Steel Corporation, a
Delaware corporation (the "Company"); and

                  WHEREAS, the Issuer proposes to refund a portion of the Series
1989 Bonds in the aggregate principal amount of $____________ (the "Refunded
Series 1989 Bonds") by the issuance under this Indenture of its Secured
Pollution Control Revenue Refunding Bonds (Weirton Steel Corporation Project)
Series 2002 in the aggregate principal amount of $___________ (the "Bonds"); and

                  WHEREAS, the Issuer has undertaken to refund the Refunded
Series 1989 Bonds by exchanging the Bonds for the Refunded Series 1989 Bonds and
is authorized to enter into an Agreement (the "Agreement"), dated as of
____________ __, 2002, between the Issuer and the Company under which the Issuer
will make a loan, or will be deemed to have made a loan, to the Company in the
aggregate principal amount of $________________ (the "Bond Loan") and provide
for payments from the Company to the Issuer sufficient to pay when due the
principal of, premium, if any and Interest (as hereinafter defined) on the Bonds
as the same become due and related expenses; and

                  WHEREAS, all things necessary to make the Bonds when
authenticated by the Trustee and issued as in this Indenture provided, the
valid, binding and legal obligations of the Issuer according to the import
thereof, and to constitute this Indenture a valid assignment and pledge of the
amounts pledged to the payment of the principal of, premium, if any, and
Interest on the Bonds, and to constitute this Indenture a valid assignment of
the rights of the Issuer under the Agreement, have been done and performed, and
the creation, execution and delivery of this Indenture, and the creation,
execution and issuance of the Bonds, subject to the terms hereof, have in all
respects been duly authorized.
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               NOW, THEREFORE, THIS INDENTURE OF TRUST WITNESSETH:

                                GRANTING CLAUSES

                  That the Issuer in consideration of the premises and the
acceptance by the Trustee of the trusts hereby created and of the purchase and
acceptance of the Bonds by the holders and owners thereof, and of the sum of one
dollar, lawful money of the United States of America, to it duly paid by the
Trustee at or before the execution and delivery of these presents, and for other
good and valuable consideration, the receipt of which is hereby acknowledged, in
order to secure the payment of the principal of, premium, if any, and Interest
on the Bonds and any additional bonds issued in accordance with the provisions
of this Indenture according to their tenor and effect and to secure the
performance and observance by the Issuer of all the covenants expressed or
implied herein and in the Bonds, does hereby assign and grant a security
interest in the following (collectively, the "Trust Estate") to the Trustee, and
its successors in trust and assigns forever, for the securing of the performance
of the obligations of the Issuer hereinafter set forth:

                              GRANTING CLAUSE FIRST

                  The Agreement, including all modifications, extensions and
renewals thereof, if any, together with all right, title and interest of the
Issuer in and to the Agreement (except under Sections 4.2(b), 6.2 and 7.4
thereof), including, but not limited to, the present and continuing right to
make claim for, collect, receive and receipt for any of the sums, amounts,
income, revenues, issues and profits and any other sums of money payable or
receivable under the Agreement (except under Sections 4.2(b), 6.2 and 7.4
thereof), to bring actions and proceedings thereunder or for the enforcement
thereof (except for amounts payable under Sections 4.2(b), 6.2 and 7.4 thereof),
and to do any and all other things which the Issuer under the Agreement is or
may become entitled to do under the Agreement.

                             GRANTING CLAUSE SECOND

                  All right, title and interest of the Issuer in and to all
moneys and securities from time to time held by the Trustee under the terms of
this Indenture, except for moneys and securities deposited with or paid to the
Trustee for the redemption of particular Bonds, notice of the redemption of
which has been duly given, and except for moneys or securities held from time to
time in the Repurchase Moneys Account of the Bond Fund or in the Rebate Fund.

                              GRANTING CLAUSE THIRD

                  The Deeds of Trust and the Security Agreement, including all
modifications, extensions and renewals thereof, if any, together with all right,
title and interest of the Issuer in and to the Deeds of Trust and Security
Agreement including all payments, revenues and receipts payable or receivable
thereunder.

                             GRANTING CLAUSE FOURTH

                  Any and all other Property of every name and nature from time
to time hereafter by delivery or by writing of any kind conveyed, mortgaged,
pledged, assigned or transferred as and for additional security hereunder by the
Company or the Issuer or by anyone in its behalf or

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with its written consent in favor of the Trustee, and the Trustee is hereby
authorized to receive any and all such Property at any and all times and to hold
and apply the same subject to the terms hereof.

                  TO HAVE AND TO HOLD all and singular the Trust Estate, whether
now owned or hereafter acquired, unto the Trustee and its respective successors
and assigns forever;

                  IN TRUST NEVERTHELESS, upon the terms and trusts herein set
forth for the equal and proportionate benefit, security and protection of all
present and future holders and owners of the Bonds, from time to time, issued
under and secured by this Indenture without privilege, priority or distinction
as to the lien or otherwise of any of the Bonds over any of the other Bonds
except in the case of funds held hereunder for the benefit of particular Owners
of Bonds;

                  PROVIDED, HOWEVER, that if the Issuer, its successors or
assigns shall well and truly pay, or cause to be paid, the principal of,
premium, if any, and Interest on the Bonds due or to become due thereon, at the
times and in the manner set forth in the Bonds according to the true intent and
meaning thereof, and shall cause the payments to be made on the Bonds as
required hereunder, or shall provide, as permitted herein, for the payment
thereof by depositing with the Trustee the entire amount due or to become due
thereon, and shall well and truly cause to be kept, performed and observed all
of its covenants and conditions pursuant to the terms of this Indenture, and
shall pay or cause to be paid to the Trustee all sums of money due or to become
due to it in accordance with the terms and provisions hereof, then upon the
final payment thereof this Indenture and the rights hereby granted shall cease,
determine and be void; except to the extent specifically provided in Article VI
hereof; otherwise this Indenture shall remain in full force and effect.

                  THIS INDENTURE FURTHER WITNESSETH, and it is expressly
declared, that all Bonds issued and secured hereunder are to be issued,
authenticated and delivered and all said Property, rights and interests,
including, without limitation, the amounts payable under the Agreement and any
other amounts hereby assigned and pledged are to be dealt with and disposed of
under, upon and subject to the terms, conditions, stipulations, covenants,
agreements, trusts, uses and purposes as herein expressed, subject to the
limitations of Section 2.04 hereof, and the Issuer has agreed and covenanted and
does hereby agree and covenant with the Trustee and with the respective holders
and owners of the Bonds as follows:

                                    ARTICLE I

                                   DEFINITIONS

                  Section 1.01 Definition of Terms. The following terms (except
as otherwise expressly provided or unless the context otherwise clearly
requires) for all purposes of this Indenture and of any Supplemental Indenture
hereto shall have the respective meanings specified in this Section. The words
"herein", "hereof" and "hereunder" and other words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or other
subdivision. The terms defined in this Article include the plural as well as the
singular.

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<PAGE>
                  "Act" means The Industrial Development and Commercial
Development Bond Act, Chapter 13, Article 2C of the West Virginia Code of 1931,
as amended.

                  "Affiliate" means, when used with reference to a specified
Person, any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Person specified. For the purposes of
this definition, "control," when used with respect to any Person, means the
power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise.

                  "Agent Members" has the meaning set forth in Section 2.06
hereof.

                  "Agreement" means the Agreement, dated as of ____________ __,
2002, by and between the Issuer and the Company, as the same may be amended from
time to time.

                  "Assignment Agreement" means that certain Assignment and
Transfer of Deeds of Trust and Security Agreement, dated as of ___________,
2002, from the Issuer to the Trustee.

                  "Authorized Investments" means any one or more of the
following investments, if and to the extent the same are then legal investments
under the applicable laws of the State of West Virginia for moneys proposed to
be invested therein:

                  (a) Bonds or other obligations of the State of West Virginia
         or bonds or other obligations the principal and interest of which are
         guaranteed by the State of West Virginia.

                  (b) Government Obligations;

                  (c) Obligations of agencies of the United States government
         issued by the Federal Land Bank, the Federal Home Loan Bank, the
         Federal Intermediate Credit Bank, the Bank for Cooperatives, the
         Federal Financing Bank, the Farm Credit System, the Federal Home Loan
         Mortgage Corporation (including participation certificates), the Export
         Bank of the United States, the Federal National Mortgage Association,
         the Government National Mortgage Association, or any agency or
         instrumentality of the government of the United States of America which
         shall be established for the purpose of acquiring the obligations of
         any of the foregoing;

                  (d) Bonds or other obligations issued by any public housing
         agency or municipality in the United States, which bonds or obligations
         are fully secured as to the payment of both principal and interest by a
         pledge of annual contributions under an annual contributions contract
         or contracts with the United States government, or project notes issued
         by any public housing agency, urban renewal agency, or municipality in
         the United States and fully secured as to payment of both principal and
         interest by a requisition, loan, or payment agreement with the United
         States government;

                  (e) Certificates of deposit of any banks having a combined
         capital, surplus and undivided profits of $10,000,000, the deposits of
         which are insured by the Federal Deposit Insurance Corporation or any
         successor agency (the "FDIC"), including the certificates of deposit of
         any bank, savings and loan association, or building and loan

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         association acting as depository, custodian, or trustee for any such
         bond proceeds; provided, however, that the portion of such certificates
         of deposit in excess of the amount insured by the FDIC, if any such
         excess exists, shall be secured by deposit with the Federal Reserve
         Bank, or with any bank, of one or more of the following securities in
         an aggregate principal amount equal at least to the amount of such
         excess: (i) Direct and general obligations of the State of West
         Virginia or of any county or municipality in the State of West
         Virginia; (ii) Government Obligations; (iii) Obligations of agencies of
         the United States government included in subparagraph (c) of this
         definition; or (iv) Bonds, obligations, or project notes of public
         housing agencies, urban renewal agencies, or municipalities included in
         subparagraph (d) of this definition;

                  (f) A taxable or tax-exempt money market fund rated in one of
         the three highest rating categories available from a nationally
         recognized rating service, which may include any mutual fund for which
         the Trustee or an Affiliate of the Trustee serves as investment
         manager, administrator, shareholder servicing agent, and/or custodian
         or subcustodian, notwithstanding that (i) the Trustee or an Affiliate
         of the Trustee receives fees from such funds for services rendered,
         (ii) the Trustee charges and collects fees for services rendered
         pursuant to the Indenture, which fees are separate from the fees
         received from such funds, and (iii) services performed for such funds
         and pursuant to the Indenture may at times duplicate those provided to
         such funds by the Trustee or its Affiliates;

                  (g) Interest-bearing time deposits, repurchase agreements,
         reverse repurchase agreements, rate guarantee agreements, or other
         similar banking arrangements with a bank or trust company having
         capital and surplus aggregating at least $50,000,000 or with any
         government bond dealer reporting to, trading with, and recognized as a
         primary dealer by the Federal Reserve Bank of New York having capital
         aggregating at least $50,000,000 or with any corporation which is
         subject to registration with the Board of Governors of the Federal
         Reserve System pursuant to the requirements of the Bank Holding Company
         Act of 1956, provided that each such interest-bearing time deposit,
         repurchase agreement, reverse repurchase agreement, rate guarantee
         agreement, or other similar banking arrangement shall permit the moneys
         so placed to be available for use at the time provided with respect to
         the investment or reinvestment of such moneys;

                  (h) Government Obligations, the interest on which is exempt
         from federal income taxation under Section 103 of the Code and which is
         not an item of tax preference for purposes of federal alternative
         minimum tax and which are rated in one of the three highest rating
         categories available from a nationally recognized rating service;

                  (i) Any and all other obligations of investment grade quality
         having a credit rating from a nationally recognized rating service of
         at least one of the three highest rating categories available and
         having a nationally recognized market, including, but not limited to,
         collateralized mortgage obligations, owner trusts offering
         collateralized mortgage obligations, guaranteed investment contracts
         offered by any firm, agency, business, governmental unit, bank,
         insurance company, corporation chartered by the United States Congress,
         or other entity, real estate mortgage investment conduits, mortgage
         obligations, mortgage pools, and pass-through securities; and

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<PAGE>
                  (j) Any other investments which in the Opinion of Counsel are
         authorized by the laws of the State of West Virginia.

                  Any investment listed above which represents investment of
amounts in any fund created hereunder, or in any account with any such fund
either shall not have a maturity in excess of 91 days or shall be subject to
tender at the option of the holder thereof to the issuer of any such investment
or its designated agent for redemption or purchase at not less than par value at
least as frequently as every seven days until maturity, earlier redemption or
purchase by such issuer or designated agent.

                  "Authorized Representative" means, in the case of the Issuer,
the Mayor, Vice-Mayor or Clerk of the Issuer; in the case of the Company, its
president or any vice president, and, in the case of both, such additional
persons as, at the time, are designated to act in behalf of the Issuer or the
Company, as the case may be, by written certificate furnished to the Trustee,
the Issuer or Company, as the case may be, containing the specimen signature of
each such person and signed on behalf of (i) the Issuer by the Mayor, Vice-Mayor
or Clerk of the Issuer and (ii) the Company by its president or any vice
president.

                  "Beneficial Owner" means, for any Bond which is held by a
nominee, the beneficial owner of such Bond.

                  "Board of Directors" mean the Board of Directors of the
Company or any authorized committee of the Board of Directors.

                  "Book Entry Bonds" means that part of the Bonds for which a
Securities Depository or its nominee is the Bondholder.

                  "Bond" or "Bonds" means the bonds authenticated and delivered
pursuant hereto.

                  "Bond Counsel" means the firm of Steptoe & Johnson, PLLC,
Charleston, West Virginia, or any other attorney or firm of attorneys designated
by the Company whose experience in matters relating to the issuance of
obligations by states and their political subdivisions is nationally recognized.

                  "Bond Debt" means, collectively, the Bond Loan and all other
obligations, liabilities and indebtedness owing by the Company to the Issuer,
the Trustee and/or the holders of the Bonds, including, without limitation,
principal and Interest (including, without limitation, any Interest accruing
after the commencement of insolvency proceedings with respect to the Company,
whether or not such Interest is allowed as a claim in such proceedings), fees
and premiums owing by the Company to the Issuer, the Trustee and/or the holders
of the Bonds (including, without limitation, reasonable attorneys' fees and
disbursements), and all other amounts owing under the Agreement, the Deeds of
Trust, the Security Agreement or any of the other Bond Documents.

                  "Bond Documents" means, collectively, the Bonds, this
Indenture, the Agreement, the Security Documents and all other documents,
instruments and agreements now or hereafter evidencing, governing, securing or
otherwise pertaining to the Bond Loan or the Bonds or otherwise executed and
delivered by or on behalf of the Company or any other party in

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connection with the Bond Loan or the Bonds or any of the foregoing documents,
together with all amendments, modifications, renewals, substitutions and
replacements of or to any of the foregoing.

                  "Bond Fund" means the fund so designated which is created by
Section 4.01 of this Indenture.

                  "Bondholder" or "Holder" or "Owner" or "registered owner"
means the registered holder of any Bond as its name appears in the registration
books of the Issuer maintained by the Trustee as Bond Registrar.

                  "Bond Loan" has the meaning set forth in the Recitals hereof.

                  "Bond Payment Date" means any Interest Payment Date and each
date on which principal shall be payable on or with respect to any of the Bonds
according to their respective terms so long as any of the Bonds shall be
Outstanding.

                  "Bond Register" has the meaning set forth in Section 2.11
hereof.

                  "Bond Registrar" has the meaning set forth in Section 2.11
hereof.

                  "Bond Resolution" means the resolution of the Issuer
authorizing the issuance, execution, exchange and delivery of the Bonds and the
execution and delivery of this Indenture, the Agreement, and the Assignment
Agreement, as such resolution may be amended or supplemented from time to time.

                  "Business Day" means a day other than a Saturday, a Sunday or
a legal holiday on which national banks located in the State of New York or the
State of West Virginia or any city where the Trustee maintains its place of
business for performance of its obligations hereunder are not open for general
banking business.

                  "Capital Stock" means, with respect to any Person, any and all
shares, interests, rights to purchase, warrants, options, participations or
other equivalents of interest in (however designated) equity of such Person,
whether now outstanding or issued after the date of issue of the Bonds,
including, without limitation, membership interests in limited liability
companies and any Preferred Stock.

                  "Code" shall mean, collectively, the Code of 1954 and the Code
of 1986.

                  "Code of 1954" shall mean the Internal Revenue Code of 1954,
as amended (but not including any amendments made by the Tax Reform Act of
1986), and the regulations, rulings and proclamations promulgated or proposed
thereunder.

                  "Code of 1986" means the Internal Revenue Code of 1986, as
amended, and the regulations, rulings and proclamations promulgated or proposed
thereunder.

                  "Collateral" means, collectively, (i) the Tandem Mill
Collateral, (ii) the Tin Mill Collateral, (iii) the Hot Mill Collateral, (iv)
all other real or personal property hereafter pledged

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to or mortgaged or conveyed by deed of trust, mortgage, deed to secure debt,
security agreement or otherwise to the Issuer and/or Trustee to secure all or
any portion of the Bond Debt, (v) all proceeds of any of the foregoing, and (vi)
all other assets of the Company or any Subsidiary or Affiliate thereof on which
the Issuer and/or Trustee are granted a Lien to secure all or any portion of the
Bond Debt or the payment of the principal of, premium, if any or Interest on the
Bonds. NOTWITHSTANDING THE FOREGOING, THE COLLATERAL SHALL NOT INCLUDE ANY
ASSETS OR PROPERTIES CONSISTING OF THE PROJECT.

                  "Collateral Agency Agreement" means the Collateral Agency and
Second Lien Intercreditor Agreement, dated ___________, 2002, by and among the
Collateral Agent, the Trustee and the Notes Trustee, as the same may be amended
from time to time.

                  "Collateral Agent" means the collateral agent as set forth in
the Collateral Agency Agreement, until a successor replaces it in accordance
with the applicable provisions of Collateral Agency Agreement, and thereafter
means the successor.

                  "Commodity Agreement" means any option or futures contract or
similar agreement or arrangement designed to protect the Company against
fluctuations in commodity prices.

                  "Company" means (i) Weirton Steel Corporation, a Delaware
corporation, and its successors and assigns, and (ii) any surviving, resulting
or transferee entity.

                  "Condemnation" means the taking of title to, or the use of,
Property, or transfer in lieu thereof, under the exercise of the power of
eminent domain by any governmental entity or other Person acting under
governmental authority.

                  "Continuing Director" has the meaning set forth in Section
3.04 hereof.

                  "Continuing Disclosure Agreement" means the Continuing
Disclosure Agreement dated as of ____________, 2002 by and among the Issuer, the
Company and the Trustee relating to the Company's undertaking to provide certain
information to the Holders of Bonds in accordance with Section (b)(5)(i) of the
Securities and Exchange Commission Rule 15c2-12 under the Exchange Act.

                  "Credit Facility" means any senior credit facility to be
entered into by the Company and the lenders referred to therein, together with
the related documents thereto (including the notes thereunder, any guarantees
and security documents), as amended, extended, renewed, restated, supplemented
or otherwise modified (in whole or in part, and without limitation as to amount,
terms, conditions, covenants, and other provisions) from time to time, and any
agreement (and related document) governing Indebtedness incurred to refinance,
in whole or in part, the borrowings and commitments then outstanding or
permitted to be outstanding under such Credit Facility or a successor Credit
Facility, whether by the same or any other lender or group of lenders.

                  "Currency Agreement" means any foreign exchange contract,
currency swap agreement or other similar agreement or arrangement designed to
protect the Company against fluctuations in currency values.

                                       8
<PAGE>
                  "Debt Service Payment" means, with respect to any Bond Payment
Date, whether any such payment shall be due at maturity or upon redemption or
acceleration of the Bonds or otherwise, (i) the Interest payable on each such
Bond Payment Date on all Bonds then Outstanding, plus (ii) the principal, if
any, payable on such Bond Payment Date on all such Bonds, plus (iii) the
premium, if any, payable on such Bond Payment Date on all such Bonds.

                  "Deeds of Trust" means, collectively, (i) the Hot Mill Deed of
Trust, (ii) the Tandem Mill Deed of Trust, (iii) the Tin Mill Deed of Trust, and
(iv) any other deed of trust, mortgage, deed to secure debt, or other instrument
encumbering any Collateral constituting real property which is given or made by
the Company or any Subsidiary thereof to or for the benefit of the Issuer or
Trustee to secure all or any portion of the Bond Debt or to secure all or any
portion of the payment of the principal of, premium, if any, or Interest or
purchase price of the Bonds.

                  "Default Rate" shall mean 9% per annum, with monthly
compounding (computed on the basis of a 360-day year for the actual number of
days elapsed).

                  "Designated Event" has the meaning set forth in Section 3.04
hereof.

                  "DTC" shall have the meaning given to such term in Section
2.06.

                  "Event of Default" or "Default" means any Event of Default
under this Indenture as specified in and determined by Section 7.01 hereof.

                  "Excess Cash Flow" means, as of each date such calculation
shall be made, the Consolidated EBITDA for the immediately preceding six month
period expiring on the last day of each December and June, respectively, prior
to such calculation date (such last day, the "Balance Sheet Date") plus (a)
decreases in working capital; minus the sum of (b) expenditures on capital
assets; (c) increases in working capital; and (d) interest and mandatory
principal payments on Indebtedness other than payments or pre-payments of
principal and fees or other amounts with respect to revolving credit
Indebtedness under the Credit Facility. The initial Balance Sheet Date shall be
designated as December 31, 2002.

                  "Exchange Act" means the Securities and Exchange Act of 1934,
as amended.

                  "Fixed Interest" means all Interest except any such Interest
that is determined by reference to the Company's Excess Cash Flow.

                  "Government Obligations" means noncallable, nonprepayable (a)
direct, general obligations of the United States of America, or (b) any
obligations unconditionally guaranteed as to the full and timely payment of all
amounts due thereunder by the full faith and credit of the United States of
America (including obligations held in book-entry form), but specifically
excluding any mutual funds or unit investment trusts invested in such
obligations.

                  "Hot Mill Collateral" means the real property constituting the
Company's Hot Strip Mill located at Company's Weirton, West Virginia
steel-making facility, which converts slabs into flat rolled coils, together
with all equipment and fixtures now or hereafter located thereon (whether or not
later moved), as described with particularity in the Hot Mill Deed of

                                       9
<PAGE>
Trust, together with all other property, real or personal, conveyed by or
pledged under or pursuant to the Hot Mill Deed of Trust and/or the Security
Agreement and otherwise described as "Property" or "Collateral", respectively
therein; provided, however, that only that portion of the "Collateral" described
in the Security Agreement which is located on, is used in connection with or is
proceeds of the Hot Strip Mill shall be included as part of the "Hot Mill
Collateral."

                  "Hot Mill Deed of Trust" means that certain Deed of Trust,
dated as of _____________, 2002 made by the Company in favor of Joyce Ofsa, as
trustee, for the benefit of the Issuer and the Notes Trustee, as beneficiaries,
and encumbering the Hot Mill Collateral which constitutes real property, as the
Issuer's rights thereunder have been assigned to the Trustee pursuant to this
Indenture and the Assignment Agreement, and as amended, supplemented, restated
or otherwise modified from time to time.

                  "Indebtedness" means, without duplication, (i) any liability
of any entity (A) for borrowed money, or under any reimbursement obligation
relating to a letter of credit, (B) evidenced by a bond, note, debenture or
similar instrument (including a purchase money obligation) given in connection
with the acquisition of any businesses, properties or assets of any kind or with
services incurred in connection with capital expenditures, or (C) in respect of
capitalized lease obligations; (ii) any liability of others described in the
preceding clause (i) that the entity has guaranteed or that is otherwise its
legal liability; (iii) to the extent not otherwise included, obligations under
Currency Agreements, Commodity Agreements or Interest Protection Agreements; and
(iv) any amendment, supplement, modification, deferral, renewal, extension or
refunding of any liability of the types referred to in clauses (i)-(iii) above,
provided that Indebtedness shall not include accounts payable (including,
without limitation, accounts payable to the Company by any of its Subsidiaries
or to any such Subsidiary by the Company or any other Subsidiary of the Company,
in each case, in accordance with customary industry practice) or liabilities to
trade creditors of any entity arising in the ordinary course of business.

                  "Indenture" means this Indenture of Trust, by and between the
Issuer and the Trustee, dated as of ____________ __, 2002, as the same may be
amended or supplemented by any Supplemental Indenture.

                  "Independent Counsel" means an attorney or firm of attorneys
duly admitted to practice law before the highest court in any state of the
United States of America or in the District of Columbia and not a full-time
employee of the Issuer, the Company or the Trustee.

                  "Intercreditor Agreement" means the Intercreditor Agreement,
dated ___________, 2002, by and among the Trustee, the Notes Trustee, the
Collateral Agent and Fleet Capital Corporation, as agent to the lenders under
the Credit Facility, as the same may be amended from time to time.

                  "Interest" means any and all interest due and payable to the
Holders with respect to the Bonds under the terms of the Indenture.

                  "Interest Payment Date" means each date on which Interest
shall be payable on any of the Bonds in accordance with their terms.

                                       10
<PAGE>
                  "Interest Protection Agreement" of any Person means any
interest rate swap agreement, interest rate collar agreement, option or future
contract or other similar agreement or arrangement designed to protect such
Person or any of its Subsidiaries against fluctuations in interest rates.

                  "Issue Date" means ______________, 2002, the date on which the
Bonds are originally issued hereunder.

                  "Issuer" means (i) City of Weirton, West Virginia, and its
successors and assigns, and (ii) any public corporation or political subdivision
resulting from or surviving any consolidation or merger to which the Issuer or
its successors or assigns may be a party.

                  "Letter of Representations" means that certain Letter of
Representations, executed by the Issuer, the Company and the Trustee and
delivered to the Securities Depository and any amendments thereto or successor
agreements between the Issuer, the Company and the Trustee and any successor
Securities Depository, relating to a system of Book Entry Bonds to be maintained
by the Securities Depository with respect to the Bonds.

                  "Lien" means, with respect to any Property, any mortgage,
lien, pledge, charge, security interest or encumbrance of any kind in respect of
such Property. For purposes of this definition, the Company shall be deemed to
own subject to a Lien any Property which it has acquired or holds subject to the
interest of a vendor or lessor under any conditional sale agreement, capital
lease or other title retention agreement relating to such Property.

                  "Moody's" means Moody's Investors Service, Inc., a corporation
organized and existing under the laws of the State of Delaware, its successors
and assigns, and, if such corporation shall be dissolved or liquidated or shall
no longer perform the functions of a securities rating agency, "Moody's" shall
be deemed to refer to any other nationally recognized securities rating agency
designated by the Company, by notice to the Trustee.

                  "Notes Indenture" means the Indenture dated as of
________________, 2002, between the Company, as issuer, and J.P. Morgan Trust
Company, National Association, as trustee, relating to the issuance by the
Company of Senior Secured Notes, as such indenture may be amended or
supplemented from time to time.

                  "Notes Trustee" means J.P. Morgan Trust Company, National
Association and its successors as trustee under the Notes Indenture, together
with any banking institution resulting from or surviving any consolidation or
merger to which it or its successors may be a party and any temporary or
successor trustee at the time serving as such thereunder.

                  "Officers' Certificate" means a certificate signed by the
Chairman of the Board of Directors or the President or any Vice President
(whether or not designated by a number or numbers or a word or words added
before or after the title "Vice President") and by the Treasurer or the
Secretary or any Assistant Secretary of the Company and delivered to the
Trustee. Each such certificate shall comply with the Agreement.

                                       11
<PAGE>
                  "Original Issue Discount" means that portion of Fixed Interest
that is treated for federal income tax purposes as original issue discount
within the meaning of Code Section 1273(a).

                  "Opinion of Counsel" means an opinion from an attorney or firm
of attorneys, acceptable to the Company, Issuer and the Trustee, with experience
in the matters to be covered in the opinion.

                  "Outstanding" or "Bonds Outstanding" or "Outstanding Bonds"
means as of any date, all Bonds theretofore authenticated and delivered by the
Trustee under this Indenture, or any supplement hereto, except: (i) any Bond
cancelled by the Trustee or delivered to the Trustee for cancellation; (ii) any
Bond for the payment of the principal or redemption price of and Interest on
which moneys or Government Obligations have been deposited with the Trustee on
or prior to its date of maturity, whether at its stated maturity or upon call
for redemption prior to maturity, other than as part of a defeasance of all the
Bonds pursuant to Article VI of this Indenture; (iii) any Bond deemed to be paid
in accordance with Section 6.02 of this Indenture, except that any such Bond
shall be deemed Outstanding until its date of actual payment, whether at its
stated maturity or upon call for redemption prior to maturity, solely for the
purpose of being exchanged or reregistered; and (iv) any Bond in lieu of or in
substitution for which another Bond shall have been authenticated and delivered
or which shall have been paid pursuant to Section 2.09 of this Indenture, unless
proof satisfactory to the Trustee is presented that any Bond, for which a Bond
in lieu of or in substitution therefor shall have been authenticated and
delivered, is held by a bona fide purchaser, as that term is defined in Article
8 of the Uniform Commercial Code of the State, as amended, in which case both
the Bond so substituted and replaced and the Bond or Bonds authenticated and
delivered in lieu thereof or in substitution therefor shall be deemed
Outstanding.

                  In determining whether the Holders of a requisite aggregate
principal amount of Outstanding Bonds have concurred in any request, demand,
authorization, direction, notice, consent or waiver under the provisions of any
Bond Document, Bonds which are owned by or held for the account of the Company,
the Issuer or any other obligor on the Bonds, or any Affiliate of any one of
said entities shall be disregarded and deemed not to be Outstanding hereunder
for the purpose of any such determination unless all Bonds are owned by or held
for the account of one or more such Persons; provided, however, that the Trustee
shall not be deemed to have knowledge that any Bond is owned by the Company, the
Issuer or any such obligor or Affiliate unless the Issuer or the Company is the
Holder or the Trustee has received written notice that any other Holder is such
an obligor or Affiliate. Notwithstanding the foregoing, Bonds so owned which
have been pledged in good faith may be regarded as Outstanding if the pledgee
shall establish to the satisfaction of the Trustee the pledgee's right to vote
such Bonds and that the pledgee is not a Person directly or indirectly
controlling or controlled by, or under direct or indirect common control with,
the Company, the Issuer or any other obligor on the Bonds. In case of a dispute
as to such right, any decision by the Trustee taken upon the advice of counsel
shall be full protection to the Trustee.

                  "Paying Agent" means the Trustee, acting as paying agent
hereunder, and any additional paying agent for the Bonds appointed pursuant to
Article VIII of this Indenture, their

                                       12
<PAGE>
respective successors and any other corporation which may at any time be
substituted in their respective places pursuant to this Indenture.

                  "Permitted Acquisition" means any one or more transactions or
series of transactions by the Company or any of its Subsidiaries after the Issue
Date, whether effected by merger, consolidation, purchase, lease or other
transfer of assets, Permitted Joint Venture or otherwise, to acquire the
properties and related business (whether through the direct purchase of assets
or of the Capital Stock of the Person owning such assets) of any other Person
(a) where the Person to be acquired has been engaged, or the assets involved
have been deployed, in the business of making, processing or distributing steel
products, including without limitation tin mill products or other coated steel
products and (b) the consummation of any such transaction would not otherwise
result in any "Event of Default" under and as such term is defined in the
Agreement immediately thereafter.

                  "Permitted Joint Venture" means the interest of the Company in
any corporation, association or other business entity of which 50% or less, but
not less than 10%, of the total Voting Stock or other interest is at the time
owned or controlled, directly or indirectly, by the Company or one or more of
its Subsidiaries or a combination thereof, provided that (a) such corporation,
association or entity is engaged in the business or businesses of the Company or
any related business and (b) that any interest paid by Company or any Subsidiary
of Company on any Indebtedness incurred by the Company or any Subsidiary of the
Company in connection with such ownership interest shall not exceed the sum of
(x) any dividends, other distributions of earnings and returns of capital
received by the Company and any of its Subsidiaries on account of such ownership
interest and (y) demonstrable operating benefits derived by the Company and any
of its Subsidiaries, including cost savings and margin improvements, calculated
on a pro forma basis as determined in good faith by management of the Company
and adopted by resolution of the majority of the independent members of the
Company's Board of Directors and delivered to the Trustee in an Officers'
Certificate.

                  "Person" means any individual, corporation, partnership, joint
venture, association, joint stock company, trust, trustee, estate, limited
liability company, unincorporated organization, real estate investment trust,
government or any agency or political subdivision thereof, or any other form of
entity.

                  "Preferred Stock" of any Person means all Capital Stock of
such Person which has a preference in liquidation or a preference with respect
to the payment of dividends.

                  "Principal Corporate Trust Office" means the corporate trust
office of the Trustee located at Dallas, Texas, or such other office as the
Trustee may designate from time to time by written notice to the Issuer and the
Company.

                  "Project" means the pollution control equipment heretofore
installed in the Company's steel manufacturing plant, located in the City of
Weirton, West Virginia, financed (or refinanced) with the proceeds of the Series
1989 Bonds, and presently owned by, or leased to, the Company.

                                       13
<PAGE>
                  "Property" of any Person means all types of real, personal,
tangible, intangible or mixed property owned by such Person whether or not
included in the most recent consolidated balance sheet of such Person and its
Subsidiaries under generally accepted accounting principles.

                  "Purchase in Lieu of Redemption Date" has the meaning set
forth in Section 3.05 hereof.

                  "Qualified Stated Interest" means that portion of Fixed
Interest that is treated for federal income tax purpose as qualified stated
interest within the meaning of Treasury Regulation Section 1.1273-1(c).

                  "Rebate Fund" means the fund so designated which is created by
Section 4.07 of this Indenture.

                  "Record Date" means the fifteenth day of the month next
preceding any Bond Payment Date.

                  "Refunded Series 1989 Bonds" has the meaning set forth in the
recitals to this Indenture.

                  "Remarketing Agent" has the meaning set forth in Section 3.04
hereof.

                  "Remarketing Conditions" has the meaning set forth in Section
3.04 hereof.

                  "Remarketing Price" has the meaning set forth in Section 3.04
hereof.

                  "Repurchase Date" has the meaning set forth in Section 3.04
hereof.

                  "Repurchase Exercise Date" has the meaning set forth in
Section 3.04 hereof.

                  "Repurchase Price" has the meaning set forth in Section 3.04
hereof.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Security Agreement" means collectively, (a) the Security
Agreement dated _________, 2002 made by the Company for the benefit of the
Issuer and the Notes Trustee encumbering a portion of the Hot Mill Collateral,
Tandem Mill Collateral and Tin Mill Collateral, which constitutes personal
property, as the Issuer's rights thereunder have been assigned to the Trustee
pursuant to this Indenture and Assignment Agreement, and as amended or
supplemented from time to time and (b) any other security agreement or other
instrument encumbering any Collateral constituting personal property which is
given or made by the Company or any Subsidiary thereof to the Trustee to secure
all or any portion of the Bond Debt or to secure all or any portion of the
payment of the principal of, premium, if any, or Interest or purchase price of
the Bonds.

                  "Security Documents" means the Deeds of Trust, the Assignment
Agreement, the Security Agreement, any Uniform Commercial Code financing
statements filed in connection with the Bond Loan, and all other documents,
instruments and agreements now or hereafter

                                       14
<PAGE>
evidencing, governing, securing or otherwise pertaining to the Bond Loan, the
Bonds or otherwise executed and delivered by or on behalf of the Company or any
other party in connection with the Bond Loan, the Bonds or any of the foregoing
documents, together with all amendments, modifications, renewals, substitutions
and replacements of or to any of the foregoing.

                  "Securities Depository" means a person that is registered as a
clearing agency under Section 17A of the Securities Exchange Act of 1934 or
whose business is confined to the performance of the functions of a clearing
agency with respect to exempted securities, as defined in Section 3(a)(12) of
such Act for the purposes of Section 17A thereof.

                  "Senior Secured Notes" means the 10% Senior Secured Notes due
2008 originally issued by the Company in the aggregate principal amount of
$134,200,000 pursuant to the Notes Indenture.

                  "Series 1989 Bonds" means the Issuer's Pollution Control
Revenue Refunding Bonds (Weirton Steel Corporation Project) Series 1989, issued
in the original aggregate principal amount of $56,300,000.

                  "S&P" means Standard & Poor's, a division of the McGraw-Hill
Companies, Inc., a corporation organized and existing under the laws of the
State of New York, its successors and assigns, and, if such corporation shall be
dissolved or liquidated or shall no longer perform the functions of a securities
rating agency, "S&P" shall be deemed to refer to any other nationally recognized
securities rating agency designated by the Company, by notice to the Trustee.

                  "State" means the State of West Virginia.

                  "Subsidiary" means, with respect of any Person, any
corporation or other entity of which a majority of the Capital Stock or other
ownership interests having ordinary voting power to elect a majority of the
board of directors or other persons performing similar functions are at the time
directly or indirectly owned by such Person.

                  "Supplemental Indenture" means any indenture supplemental to
or amendatory of this Indenture adopted by the Issuer in accordance with Article
IX hereof.

                  "Tandem Mill Collateral" means the real property constituting
the Company's No. 9 tin tandem mill located at Company's Weirton, West Virginia
steel-making facility, together with all equipment and fixtures now or hereafter
located thereon (whether or not later moved), as described with particularity in
the Tandem Mill Deed of Trust, together with all other property, real or
personal, conveyed by or pledged under or pursuant to the Tandem Mill Deed of
Trust and/or the Security Agreement and otherwise described as "Property" or
"Collateral", respectively therein; provided, however, that only that portion of
the "Collateral" described in the Security Agreement which is located on, is
used in connection with or is proceeds of the Tandem Mill shall be included as
part of the "Tandem Mill Collateral."

                  "Tandem Mill Deed of Trust" means that certain Deed of Trust,
dated as of _____________, 2002 made by the Company in favor of Joyce Ofsa, as
trustee, for the benefit of the Issuer and the Notes Trustee, as beneficiaries,
and encumbering the Tandem Mill Collateral

                                       15
<PAGE>
which constitutes real property, as the Issuer's rights thereunder have been
assigned to the Trustee pursuant to this Indenture and the Assignment Agreement,
and as amended, supplemented, restated or otherwise modified from time to time.

                  "Tender Option Right" has the meaning set forth in Section
3.04 hereof.

                  "Tin Mill Collateral" means the real property constituting the
Company's tin mill located at the Company's Weirton, West Virginia steel-making
facility, together with all equipment and fixtures now or hereafter located
thereon (whether or not later moved), as described with particularity in the Tin
Mill Deed of Trust (excluding assets set forth in Exhibit B to the Tin Mill Deed
of Trust), together with all other property, real or personal, conveyed by or
pledged under or pursuant to the Tin Mill Deed of Trust and/or the Security
Agreement and otherwise described as "Property" or "Collateral", respectively
therein; provided, however, that only that portion of the "Collateral" described
in the Security Agreement which is located on, is used in connection with or is
proceeds of the Tin Mill shall be included as part of the "Tin Mill
Collateral.".

                  "Tin Mill Deed of Trust" means that certain Deed of Trust,
dated as of _____________, 2002 made by the Company in favor of Joyce Ofsa, as
trustee, for the benefit of the Issuer and the Notes Trustee, as beneficiaries,
and encumbering the Tin Mill Collateral which constitutes real property, as the
Issuer's rights thereunder have been assigned to the Trustee pursuant to this
Indenture and the Assignment Agreement and as amended, supplemented, restated or
otherwise modified from time to time.

                  "Treasury Regulations" means those treasury regulations
promulgated under the Code.

                  "Trust Estate" means all Property which may from time to time
be subject to the Lien of this Indenture.

                  "Trustee" means J.P. Morgan Trust Company, National
Association and its successors as trustee hereunder, together with any banking
institution resulting from or surviving any consolidation or merger to which it
or its successors may be a party and any temporary or successor trustee at the
time serving as such hereunder.

                  "Voting Stock" means Capital Stock which ordinarily has voting
power for the election of directors (or persons performing similar functions),
whether at all times or only so long as no senior class of securities has such
voting power by reason of any contingency.

                  "Wholly Owned Subsidiary" means, at any time, a Subsidiary all
of the Capital Stock of which (except directors' qualifying shares) are at the
time owned directly or indirectly by the Company.

                                       16
<PAGE>
                                   ARTICLE II

                       AUTHORIZATION AND ISSUANCE OF BONDS

                  Section 2.01 Authorized Amount of Bonds. The total principal
amount of Bonds that may be issued hereunder is hereby expressly limited to
THIRTY-THREE MILLION EIGHT HUNDRED THOUSAND Dollars ($33,800,000), except as
provided in Section 2.09 hereof.

                  Section 2.02 Purposes for Which Bonds May Be Issued. Bonds may
be issued only for the purposes of refunding the Refunded Series 1989 Bonds.

                  Section 2.03 Issuance and Form of Bonds; Legend. The Bonds
shall be designated "Secured Pollution Control Revenue Refunding Bonds (Weirton
Steel Corporation Project) Series 2002." The Bonds shall be issuable as fully
registered Bonds without coupons in the denomination of $1,000 or any integral
multiple of $1,000 in excess thereof. All Bonds issued under this Indenture
shall be in registered form in substantially the form set forth in Exhibit A
attached hereto, with appropriate variations, omissions and insertions as
permitted or required by this Indenture. The Bonds shall be numbered, lettered,
or otherwise distinguished in such manner or in accordance with such plans as
the officers of the Issuer executing the same may determine with the approval of
the Trustee. Bonds may be issued, if agreed by the Issuer and the Holder, in the
form of definitive Bonds in physical form. Any of the Bonds may have imprinted
or otherwise reproduced thereon such legend or legends, not inconsistent with
the provisions of this Indenture, as may be required to comply with any law or
with any rules or regulations pursuant thereto, or with the rules of any
securities market in which the Bonds are admitted to trading, or to conform to
general usage. The Issuer shall furnish any such legends or endorsements to the
Trustee in writing. The Issuer shall approve the form of the Bonds and any
notation, legend or endorsement on them.

                  (a) Each Bond shall bear Interest from the Issue Date and
         shall be payable in the amount and on the dates as specified on the
         form of Bond.

                           Except as otherwise provided herein, all Bonds shall
         be subject to redemption or purchase prior to maturity on the terms,
         for the reasons, in the manner, at the price or prices and as otherwise
         set forth in Article III hereof.

                  (b) Each Bond shall bear the following original issue discount
         legend:

                  FOR PURPOSES OF SECTION 1273 OF THE INTERNAL REVENUE CODE OF
                  1986, AS AMENDED (THE "CODE"), THIS BOND HAS ORIGINAL ISSUE
                  DISCOUNT. FOR PURPOSES OF SECTION 1273 OF THE CODE, THE ISSUE
                  PRICE IS $     AND THE AMOUNT OF ORIGINAL ISSUE DISCOUNT IS
                  $     , IN EACH CASE PER $1,000 PRINCIPAL AMOUNT OF THIS BOND
                  FOR PURPOSES OF SECTION 1273 OF THE CODE, THE YIELD TO
                  MATURITY COMPOUNDED SEMIANNUALLY IS       %.

                  (c) The Bonds shall be dated as of the Issue Date.

                                       17
<PAGE>
                  (d) Subject to the provisions of Section 2.06 hereof relating
         to Book Entry Bonds, the principal of and premium, if any, on the Bonds
         shall be payable, upon presentation and, in the case of payment at
         maturity or by prior redemption, surrender of such Bonds, at the
         Principal Corporate Trust Office of the Trustee. The purchase price of
         any Bonds tendered for purchase hereunder shall be payable by the
         Trustee to the Owner of Bonds entitled to receive such purchase price
         at its address shown on the registration books of the Issuer maintained
         by the Trustee. Payment of Interest on Bonds shall be made on each
         Interest Payment Date to the Owner thereof on the Record Date and shall
         be paid by check mailed or wire transfer by the Trustee to such
         registered owner at his address as it appears on the registration books
         of the Issuer maintained by the Trustee as Bond Registrar or at such
         other address as is furnished to the Trustee in writing by such
         registered owner. Payment of principal of, premium, if any, and
         Interest on and purchase price upon tender of the Bonds shall be made
         in lawful money of the United States of America which on the date of
         payment thereof shall be legal tender for the payment of public and
         private debts.

                  (e) Notwithstanding anything contained in this Indenture to
         the contrary, Interest on Bonds due on any Interest Payment Date shall
         be payable to the Person in whose name such Bond is registered at the
         close of business on the Record Date with respect to such Interest
         Payment Date, irrespective of any transfer or exchange of such Bond
         subsequent to such Record Date and prior to such Interest Payment Date,
         unless the Issuer shall default in the payment of Interest due on such
         Interest Payment Date. In the event of any such default, such defaulted
         Interest shall be payable to the Person in whose name such Bond is
         registered at the close of business on a special record date for the
         payment of such defaulted Interest established by notice mailed by or
         on behalf of the Issuer to the registered Holders of Bonds not less
         than fifteen (15) days preceding such special record date. Such notice
         shall be mailed to the Persons in whose name the Bonds are registered
         at the close of business on the fifteenth day preceding the date of
         mailing. Payment of Interest and principal on the Bonds, at the option
         of the Issuer, may be made by check mailed to the registered address of
         the Person entitled thereto.

                  Section 2.04 Execution; Limited Obligations.

                  (a) The Bonds shall be executed in the name and on behalf of
         the Issuer with the manual or facsimile signature of its Mayor or
         Vice-Mayor and sealed with its corporate seal or a facsimile thereof,
         each of the foregoing to be attested to by the manual or facsimile
         signature of its Clerk. Each such facsimile signature shall have the
         same force and effect as a manual signature. In case any officer whose
         manual or facsimile signature shall appear on the Bonds shall cease to
         be such officer before the delivery of such Bonds, such signature shall
         nevertheless be valid and sufficient for all purposes as if such
         officer had remained in office until such delivery; and any Bond may be
         signed on behalf of the Issuer, manually or in facsimile, by the person
         who, on the date of execution of such Bond, shall be the proper officer
         of the Issuer, even if such officer did not occupy such office on the
         date of execution of this Indenture.

                  (b) The Bonds and the Interest thereon shall not be general
         obligations of the Issuer, but shall be limited obligations payable
         solely from the amounts payable under the

                                       18
<PAGE>
         Agreement (except to the extent paid out of moneys attributable to the
         proceeds derived from the sale of the Bonds or to income from the
         investment thereof) and other amounts specifically pledged therefor
         under this Indenture and shall be a valid claim of the respective
         Holders thereof only against the Bond Fund and other moneys held by
         Trustee and the amounts payable under the Agreement the Security
         Agreement and the Deeds of Trust or otherwise pledged therefor. Neither
         the Issuer, the State nor any other political subdivision of the State
         shall be obligated to pay the principal of the Bonds, premium, if any,
         or Interest thereon or other costs incident thereto except from the
         revenues and other amounts pledged therefor. Neither the general credit
         nor the taxing power of the Issuer or the State or any other political
         subdivision thereof is pledged to the payment of the principal of,
         premium, if any, or Interest on the Bonds or other costs incident
         thereto. The Bonds and the Interest thereon shall not be a charge upon
         the tax revenues of the Issuer, or a charge upon any other revenues or
         Property of the Issuer not specifically pledged thereto.

                  Section 2.05 Authentication.

                  (a) No Bond shall be valid for any purpose or shall be
         entitled to any right or benefit hereunder unless there shall be
         endorsed on such Bond a Certificate of Authentication, substantially in
         the form set forth in Exhibits A or B attached hereto, duly executed by
         the Trustee. Such executed Certificate of Authentication by the Trustee
         upon any such Bond shall be conclusive evidence that such Bond has been
         authenticated and delivered under this Indenture. The Trustee's
         Certificate of Authentication on any Bond shall be deemed to have been
         executed by it if signed by an authorized signatory of the Trustee, but
         it shall not be necessary that the same person sign the Certificate of
         Authentication on all of the Bonds issued hereunder.

                  (b) In the event any Bond is deemed tendered to the Trustee as
         provided hereunder but is not physically so tendered, the Issuer shall
         execute and the Trustee shall authenticate a new Bond of like
         denomination as that deemed tendered.

                  Section 2.06 Securities Depository Provisions. All Book Entry
Bonds shall be registered in the name of Cede & Co., as nominee of The
Depository Trust Company ("DTC"). The Issuer and the Trustee acknowledge that
they have executed and delivered a Letter of Representations with the Company
and DTC. All payments of principal of, premium, if any, and interest on the Book
Entry Bonds and all notices with respect thereto, including notices of full or
partial redemption or purchases in lieu of redemption, shall be made and given
at the times and in the manner set out in the Letter of Representations. The
terms and provisions of the Letter of Representations shall govern in the event
of any inconsistency between the provisions of this Indenture and the Letter of
Representations. The Letter of Representations may be amended without Bondholder
consent.

                  The Beneficial Owners of Book Entry Bonds will not receive
physical delivery of certificates except as provided herein. For so long as
there is a Securities Depository for Book Entry Bonds, all of such Bonds shall
be registered in the name of the nominee of the Securities Depository, all
transfers of beneficial ownership interests in such Bonds will be made in
accordance with the rules of the Securities Depository, and no investor or other
party purchasing,

                                       19
<PAGE>
selling or otherwise transferring beneficial ownership of such Bonds is to
receive, hold or deliver any certificate. The Issuer, the Trustee and the
Company shall have no responsibility or liability for transfers of beneficial
ownership interests in such Bonds.

                  The Issuer, the Company and the Trustee will recognize the
Securities Depository or its nominee as the Bondholder of Book Entry Bonds for
all purposes, including receipt of payments, notices and voting; provided the
Trustee may recognize votes by or on behalf of Beneficial Owners as if such
votes were made by Bondholders of a related portion of the Book Entry Bonds when
such votes are received in compliance with an omnibus proxy of the Securities
Depository or otherwise pursuant to the rules of the Securities Depository or
the provisions of the Letter of Representations or other comparable evidence
delivered to the Trustee by the Bondholders or as provided in Sections 7.11,
8.04 and 12.01 of this Indenture.

                  With respect to Book Entry Bonds, the Issuer, the Company and
the Trustee shall be entitled to treat the Person in whose name such Bond is
registered as the absolute owner of such Bond for all purposes of this
Indenture, and neither the Issuer, the Company nor the Trustee shall have any
responsibility or obligation to any Beneficial Owner of such Book Entry Bond.
Without limiting the immediately preceding sentence, neither the Issuer, the
Company nor the Trustee shall have any responsibility or obligation with respect
to (a) the accuracy of the records of any Securities Depository or any other
Person with respect to any ownership interest in Book Entry Bonds, (b) the
delivery to any Person, other than a Bondholder, of any notice with respect to
Book Entry Bonds, including any notice of redemption or refunding, (c) the
selection of the particular Book Entry Bonds or portions thereof to be redeemed
or refunded in the event of a partial redemption or refunding of part of the
Bonds Outstanding or (d) the payment to any Person, other than a Bondholder, of
any amount with respect to the principal of, redemption premium, if any, or
interest on Book Entry Bonds.

                  Section 2.07 Temporary Bonds. Until Bonds in definitive form
are ready for delivery, the Issuer may execute, and upon the request of the
Issuer, the Trustee shall authenticate and deliver, subject to the provisions,
limitations and conditions set forth herein, one or more Bonds in temporary
form, whether printed, typewritten, lithographed or otherwise produced,
substantially in the form of the definitive Bonds, with appropriate omissions,
variations and insertions, and in authorized denominations. Until exchanged for
Bonds in definitive form, such Bonds in temporary form shall be entitled to the
Liens and benefits of this Indenture. Upon presentation and surrender of any
Bond or Bonds in temporary form, the Issuer shall, at the request of the
Trustee, execute and deliver to the Trustee, and the Trustee shall authenticate
and deliver, in exchange therefor, a Bond or Bonds in definitive form. Such
exchange shall be made by the Trustee without making any charge therefor to the
Owner of such Bond in temporary form. Notwithstanding the foregoing, Bonds in
definitive form may be issued hereunder in typewritten form.

                  Section 2.08 Delivery of the Bonds.

                  (a) Upon the execution and delivery of this Indenture, the
         Issuer shall execute and deliver the Bonds to the Trustee and the
         Trustee shall authenticate the Bonds and deliver them in accordance
         with the directions of the Issuer and the provisions of this Section
         2.08.

                                       20
<PAGE>
                  (b) Prior to or simultaneously with the delivery by the
         Trustee of any of the Bonds, there shall be filed with the Trustee at
         least:

                           1.       Original, executed counterparts of the
                                    Agreement, this Indenture, the Security
                                    Documents, the Collateral Agency Agreement
                                    and the Intercreditor Agreement.

                           2.       A certificate executed by an Authorized
                                    Representative of the Company with respect
                                    to the due authorization, execution and
                                    delivery of the Agreement.

                           3.       A copy, duly certified by an Authorized
                                    Representative of the Issuer, of the Bond
                                    Resolution.

                           4.       An Opinion of Counsel for the Company
                                    stating that, in the opinion of such
                                    counsel, the Agreement has been duly
                                    authorized, executed and delivered by the
                                    Company and is the legal, valid and binding
                                    obligation of the Company enforceable
                                    against the Company in accordance with its
                                    terms, except to the extent certain
                                    bankruptcy and insolvency laws and equitable
                                    principles may affect its enforceability.

                           5.       An Opinion of Counsel for the Issuer stating
                                    in the opinion of such counsel (i) that the
                                    Agreement and this Indenture have been duly
                                    authorized, executed and delivered by the
                                    Issuer, (ii) that the Agreement and this
                                    Indenture are legal, valid and binding
                                    obligations of the Issuer enforceable
                                    against the Issuer in accordance with their
                                    respective terms, except to the extent
                                    certain bankruptcy or insolvency laws and
                                    equitable principles may affect their
                                    enforceability, and (iii) that this
                                    Indenture creates all the Liens which it
                                    purports to create.

                           6.       An opinion of Bond Counsel as to the due
                                    existence and authority of the Issuer; the
                                    valid issuance of the Bonds under the Bond
                                    Resolution and the Act; the exemption from
                                    registration of the Bonds under the
                                    Securities Act; the exemption from
                                    qualification of the Indenture under the
                                    Trust Indenture Act of 1939, as amended; and
                                    the tax-exempt status of the Qualified
                                    Stated Interest or Original Issue Discount
                                    on the Bonds under the Code and under the
                                    laws of the State.

                           7.       An authorization to the Trustee, signed by
                                    an Authorized Representative of the Issuer,
                                    to authenticate and deliver the Bonds in
                                    accordance with such authorization.

                           8.       Assignment Agreement, in form and substance
                                    reasonably satisfactory to the Trustee,
                                    assigning the Issuer's rights under the

                                       21
<PAGE>
                                    Agreement, the Deeds of Trust and the
                                    Security Agreement, as and to the extent
                                    contemplated to be included in the Trust
                                    Estate.

                           9.       Such other documents and opinions as the
                                    Trustee may reasonably request.

                  Section 2.09 Mutilated, Lost, Stolen or Destroyed Bonds.

                  (a) In the event any Bond is mutilated, lost, stolen or
         destroyed, the Issuer may execute and, upon the request of an
         Authorized Representative of the Issuer, the Trustee shall authenticate
         and deliver a new Bond of like principal amount, maturity, interest
         rate and series as the mutilated, destroyed, lost or stolen Bond in
         exchange for a mutilated Bond or in substitution for a Bond so
         destroyed, lost or stolen, as the case may be. In every such case of
         exchange or substitution, the applicant shall furnish to the Issuer,
         the Trustee and the Company (i) such security or indemnity as may be
         reasonably required by any of them to save each of them harmless from
         all risks, however remote, and (ii) evidence to their reasonable
         satisfaction of the mutilation, destruction, loss or theft of the
         applicant's Bond and of the ownership thereof. Upon the issuance of any
         Bond upon such exchange or substitution, the Issuer, the Company or
         Trustee may require the payment of a sum sufficient to cover any tax or
         other governmental charge that may be imposed in relation thereto and
         any other expenses, including counsel fees, of the Issuer, the Company
         or the Trustee incurred in connection therewith. In case any Bond which
         has matured or is about to mature shall become mutilated or be
         destroyed, lost or stolen, the Issuer may, instead of issuing a Bond in
         exchange or substitution therefor, pay or authorize the payment of the
         same (without surrender thereof except in the case of a mutilated Bond)
         if the applicant for such payment shall furnish to the Issuer, to the
         Company and to the Trustee such security or indemnity as either of them
         may reasonably require to save them harmless, together with evidence to
         the reasonable satisfaction of the Issuer, to the Company and the
         Trustee of the mutilation, destruction, loss or theft of such Bond and
         of the ownership thereof.

                  (b) All Bonds shall be held and owned upon the express
         condition that the provisions of this Section 2.09 are exclusive with
         respect to the replacement or payment of mutilated, destroyed, lost or
         stolen Bonds and shall preclude all other rights or remedies,
         notwithstanding any law or statute now existing or hereinafter enacted
         to the contrary.

                  Section 2.10 Interchangeability of Bonds; Negotiability.

                  (a) Subject to Section 2.13 hereof, any Bond, upon surrender
         thereof at the Principal Corporate Trust Office of the Trustee together
         with a written instrument of transfer reasonably satisfactory to the
         Trustee duly executed by the registered owner or his duly authorized
         attorney, may be exchanged for an equal aggregate principal amount of
         fully registered Bonds of the same maturity, interest rate and series
         as the Bonds so surrendered in any other authorized denominations.

                                       22
<PAGE>
                  (b) All Bonds issued under this Indenture shall be negotiable,
         subject to the provisions for registration and transfer contained in
         this Indenture and in the Bonds.

                  Section 2.11 Registration, Transfer and Exchange.

                  (a) So long as any Bonds shall remain Outstanding, the Issuer
         shall maintain at the Principal Corporate Trust Office of the Trustee
         books for the registration and transfer of the Bonds ("Bond Register").
         The Trustee is hereby appointed bond registrar ("Bond Registrar") for
         the Issuer for the purpose of registering and effecting transfers on
         such registration books. By executing this Indenture, the Trustee
         accepts the duties and obligations of Bond Registrar for the Issuer.
         The Trustee, as Bond Registrar, shall register in such books and permit
         to be transferred thereon, under such reasonable regulations as the
         Trustee may prescribe, any Bond entitled to registration or transfer.

                  (b) The Bonds are issuable only in registered form. Subject to
         the provisions of Section 2.06 hereof with respect to the transfer of
         ownership of Book Entry Bonds, a Holder may transfer a Bond by written
         application to the Bond Registrar stating the name of the proposed
         transferee and otherwise complying with the terms of this Indenture. No
         such transfer shall be effected until, and such transferee shall
         succeed to the rights of a Holder only upon, final acceptance and
         registration of the transfer by the Bond Registrar in the Bond
         Register. Prior to the registration of any transfer by a Holder as
         provided herein, the Issuer, the Trustee, and any agent of the Issuer
         shall treat the person in whose name the Bond is registered as the
         owner thereof for all purposes whether or not the Bond shall be
         overdue, and neither the Issuer, the Trustee, nor any such agent shall
         be affected by notice to the contrary. When Bonds are presented to the
         Bond Registrar with a request to register the transfer or to exchange
         them for an equal principal amount of Bonds of other authorized
         denominations, the Bond Registrar shall register the transfer or make
         the exchange as requested if its requirements for such transactions are
         met. To permit registrations of transfers and exchanges in accordance
         with the terms, conditions and restrictions hereof, the Issuer shall
         execute and the Trustee shall authenticate Bonds at the Bond
         Registrar's request.

                  (c) In all cases in which the privilege of exchanging or
         transferring Bonds is exercised, the Issuer shall execute and the
         Trustee shall authenticate and deliver Bonds in accordance with the
         provisions of this Indenture. All Bonds surrendered in any such
         exchanges or transfers shall forthwith be cancelled in accordance with
         the provisions of Section 5.10 hereof. For every such exchange or
         transfer of Bonds, the Issuer or the Trustee may impose a charge
         sufficient to reimburse it for any tax, fee or other governmental
         charge required to be paid with respect to such exchange or transfer,
         and may charge the Company for (i) the cost of preparing each new Bond
         and (ii) any other expenses of the Issuer or the Trustee incurred in
         connection therewith.

                  (d) The Trustee shall not be required to exchange or register
         a transfer of (i) any Bonds during the 15-day period next preceding the
         selection of Bonds to be redeemed and thereafter until the date of the
         mailing of a notice of redemption of Bonds selected for redemption, or
         (ii) any Bonds selected, called or being called for redemption

                                       23
<PAGE>
         in whole or in part except, in the case of any Bond to be redeemed in
         part, the portion thereof not to be so redeemed.

                  (e) Each Bond shall be transferable only on the books of the
         Issuer upon surrender thereof at the Principal Corporate Trust Office
         of the Trustee together with a written instrument of transfer
         reasonably satisfactory to the Trustee duly executed by the registered
         owner or his attorney duly authorized in writing. Upon the transfer of
         any such Bond, the Issuer shall issue in the name of the transferee a
         new, registered Bond or Bonds of the same aggregate principal amount,
         maturity, interest rate and series as the surrendered Bond.

                  (f) The Issuer, the Trustee and any Paying Agent may deem and
         treat the Person in whose name any Bond shall be registered upon the
         books of the Issuer as the absolute owner thereof, whether such Bond
         shall be overdue or not, for the purpose of receiving payment of the
         principal or redemption price of and (subject to the other provisions
         of this Indenture) Interest on such Bond and for all other purposes.
         All such payments so made to any such registered owner, or upon his
         order, shall satisfy and discharge the liability of the Issuer upon
         such Bond to the extent of the sum or sums so paid. The Issuer, the
         Trustee and any Paying Agent shall not be affected by any notice to the
         contrary.

                  Section 2.12 Wire Instructions. Notwithstanding any provisions
of this Indenture and the Bonds to the contrary, if the Issuer and a Holder so
agree, payments of cash Interest on, and any portion of the principal of any
Bonds other than the final payment of principal on a Bond or payment of the
purchase price of any Bond upon tender thereof, may be made by the Paying Agent
upon receipt from the Issuer in immediately available funds, directly to the
Holder of such Bond (whether by Federal funds, wire transfer or otherwise) if
the Holder has delivered written instructions to the Trustee 15 days prior to
such payment date requesting that such payment will be so made and designating
the bank account to which such payment shall be so made and in the case of
payments of a portion of the principal of any Bonds other than the final payment
of principal on a Bond, the Holder of such Bond surrenders the same to the
Trustee in exchange for a Bond or Bonds aggregating the same principal amount as
the unredeemed principal amount of the Bonds surrendered. The Trustee shall be
entitled to rely on the last instruction delivered by the Holder pursuant to
this Section 2.12 unless a new instruction is delivered 15 days prior to a
payment date. The Issuer will indemnify and hold the Trustee harmless against
any loss, liability or expense (including attorneys' fees) resulting from any
act or omission to act on the part of the Issuer or any such Holder in
connection with any such agreement or which the Paying Agent may incur as a
result of making any payment in accordance with any such agreement.

                  Section 2.13 Discontinuance of Book-Entry System. The
book-entry registration system for all of the Book Entry Bonds may be terminated
and certificates delivered to and registered in the name of the Beneficial
Owners, under either of the following circumstances:

                   (a) DTC notifies the Issuer, the Company and the Trustee that
          it is no longer willing or able to act as Securities Depository for
          the Book Entry Bonds and a successor Securities Depository for the
          Book Entry Bonds is not appointed by the Issuer at the direction of
          the Company prior to the effective date of such discontinuation; or

                                       24
<PAGE>
                   (b) The Company determines that continuation of the
          book-entry system through DTC (or a successor Securities Depository)
          is not in the best interest of the Company.

          In the event a successor Securities Depository is appointed by the
Issuer at the direction of the Company, the Book Entry Bonds will be registered
in the name of such successor Securities Depository or its nominee. In the event
certificates are required to be issued to Beneficial Owners, the Trustee, the
Company and the Issuer shall be fully protected in relying upon a certificate of
DTC or any DTC participant as to the identity of and the principal amount of
Book Entry Bonds held by such Beneficial Owners.

                                   ARTICLE III

                      REDEMPTION OF BONDS BEFORE MATURITY;
                      TENDER OPTION RIGHTS OF BONDHOLDERS;
                         PURCHASE IN LIEU OF REDEMPTION

                  Section 3.01 Mandatory Redemption; Extraordinary Redemption;
Optional Redemption.

                  (a) The Bonds are subject to mandatory redemption prior to
         their maturity upon a "Determination of Taxability" (as hereinafter
         defined) with respect to any Bond. If so called for redemption, the
         Bonds shall be redeemed by the Issuer in whole at any time within two
         hundred ten (210) days after such Determination of Taxability, at one
         hundred percent (100%) of the aggregate principal amount of the Bonds
         then Outstanding, plus accrued Interest to the redemption date.

                           A "Determination of Taxability" shall be deemed to
         have been made upon the first to occur of the following events:

                           (i) the date on which the Company notifies the
                  Trustee that an "Event of Taxability" (as hereinafter defined)
                  has occurred, which notice is supported by one or more tax
                  schedules, returns or documents that evidence the occurrence
                  of such Event of Taxability; or

                           (ii) a final resolution that Qualified Stated
                  Interest or Original Issue Discount on any Bond is includable
                  in the gross income of the recipient thereof for Federal
                  income tax purposes (other than by reason of the recipient
                  being a "substantial user" of the Project or a "related
                  person" to a "substantial user," as such terms are defined in
                  Section 103(b)(13) of the Code of 1954), that, under
                  applicable law, is not subject to further appeal, review or
                  modification through proceedings or otherwise, including (1)
                  by the expiration of a statute of limitations or a period for
                  the filing of claims appealing from adverse determinations, or
                  recovering any refund (including by offset), (2) by a
                  decision, judgment, decree, or other order by a court of
                  competent jurisdiction, which has become final and
                  unappealable, or (3) by closing agreement, an accepted offer
                  in

                                       25
<PAGE>
         compromise under the Code, or comparable agreements under United States
         federal income tax law or the laws of other jurisdictions;

         provided, however, that no Determination of Taxability described in
         clause (i) above shall be deemed to have occurred if the Trustee shall
         have received an unqualified written opinion of Bond Counsel
         satisfactory to the Trustee, in form and substance satisfactory to the
         Trustee, to the effect that no Event of Taxability has occurred.

                           "Event of Taxability," with respect to any Bond,
         means a change of law or regulation, or the interpretation thereof, or
         the occurrence of any other event or the existence of any other
         circumstance (including without limitation the fact that any
         representation or warranty of the Company or the Issuer made in
         connection with the issuance of the Bonds is or was untrue) that has
         the effect of causing Qualified Stated Interest or Original Issue
         Discount on any Bond to be includable in the gross income of the
         recipient thereof for Federal income tax purposes (other than by reason
         that such Qualified Stated Interest or Original Issue Discount (i) is
         includable in the gross income of an owner or former owner of a Bond
         while such owner or former owner is or was a "substantial user" of the
         Project or a "related person" to a "substantial user," as such terms
         are defined in Section 103(b)(13) of the Code of 1954, or (ii) is
         deemed an item of tax preference, including without limitation an item
         subject to any alternative minimum tax). The Company shall promptly
         give written notice to the Issuer and the Trustee within thirty (30)
         days after becoming aware that an Event of Taxability has occurred.

                           If the Issuer or the Trustee receives written notice
         from any Owner of Bonds or taxing authority stating that a taxing
         authority proposes to include Qualified Stated Interest or Original
         Issue Discount on any Bond in the gross income of a Holder or Holders
         of Bonds for the reasons described herein or any other proceeding has
         been instituted which may lead to a final resolution as described in
         clause (ii) of the definition of "Determination of Taxability" or to an
         Event of Taxability (a "Tax Proceeding"), then the Trustee and/or the
         Issuer shall promptly give written notice to the Company of such Tax
         Proceeding and the Company shall have the right, at its own expense, to
         participate in and control the Tax Proceeding to the same extent that
         the Issuer would otherwise have the right to participate in and control
         the Tax Proceeding. The Issuer hereby agrees to execute all documents
         reasonably necessary to permit the Company to participate in and
         control any such Tax Proceeding and neither the Trustee nor the Issuer
         shall, without the prior written consent of the Company (which consent
         shall not be unreasonably withheld) agree to the entry of any judgment
         or enter into any settlement with respect to the Tax Proceeding.

                  (b) The Bonds shall be redeemed prior to maturity by the
         Issuer in whole at any time at 100% of the principal amount thereof,
         plus Interest accrued thereon to the date set for redemption, if the
         Company elects to terminate the Agreement pursuant to Section 8.1(a)
         thereof, upon the occurrence of one of the following events:

                           (i) the Project or any substantial portion of the Hot
                  Mill Collateral, Tandem Mill Collateral or the Tin Mill
                  Collateral, to the extent owned and operated by the Company
                  (each, a "Facility"), shall have been damaged or

                                       26
<PAGE>
                  destroyed to such extent that (1) in the reasonable opinion of
                  the Company, expressed in a certificate signed by an
                  Authorized Representative of the Company, the Project or such
                  substantial portion of a Facility cannot be reasonably
                  restored within a period of 6 months from the date of such
                  damage or destruction, or (2) the Company is thereby prevented
                  or, in the reasonable opinion of the Company expressed in a
                  certificate signed by an Authorized Representative of the
                  Company, is likely to be prevented from carrying on its normal
                  operation of the Project or such substantial portion of a
                  Facility for a period of 6 months from the date of such damage
                  or destruction; or

                           (ii) title to, or the temporary use of, all or
                  substantially all of the Project or any substantial portion of
                  a Facility shall have been condemned by a competent authority
                  which Condemnation results or, in the reasonable opinion of
                  the Company expressed in a certificate signed by an Authorized
                  Representative of the Company, is likely to result in the
                  Company being thereby prevented from carrying on its normal
                  operation of the Project or such substantial portion of a
                  Facility for a period of 6 months; or

                           (iii) as a result of changes in the Constitution of
                  the United States of America or of the State or of legislative
                  or executive action of any political subdivision thereof or of
                  the United States of America or by final decree or judgment of
                  any court, after the contest thereof by the Company, (x) the
                  Agreement becomes void or unenforceable or, (y) in the
                  reasonable opinion of the Company expressed in a certificate
                  signed by an Authorized Representative of the Company, (A) the
                  Agreement becomes impossible of performance in accordance with
                  the intent and purposes of the parties as expressed therein or
                  (B) unreasonable burdens or excessive liabilities are imposed
                  upon the Company by reason of the operation of the Project or
                  any substantial portion of a Facility; or

                           (iv) a change shall have occurred in the economic
                  availability of raw materials, manufactured products, energy
                  sources, operating supplies or facilities necessary for the
                  operation of the Project or any substantial portion of a
                  Facility for the purposes for which the Project or such
                  substantial portion of a Facility was originally constructed,
                  or such technological or other changes shall have occurred
                  that, in the reasonable opinion of the Company expressed in a
                  certificate signed by an Authorized Representative of the
                  Company, the Project or such substantial portion of a Facility
                  is rendered uneconomic, impractical or unfeasible for the
                  purposes for which it was originally constructed.

                  (c) The Bonds also shall be redeemed prior to maturity by the
         Issuer, at the option of the Company, in whole at any time or in part
         on any Interest Payment Date; on or after April 1, 2004, upon payment
         in each case of the applicable redemption price (expressed as a
         percentage of the principal amount of such Bonds to be so redeemed), as
         set forth in the schedule below, together with Interest accrued
         thereon, if any, to the date set for redemption, if redeemed during the
         12-month period beginning April 1 of the years indicated below:

                                       27
<PAGE>
<TABLE>
<CAPTION>
                          Year                                                     Redemption Price
                          ----                                                     ----------------
<S>                                                                                <C>
                          2004                                                          102%
                          2005                                                          101%
                          2006 and thereafter                                           100%
</TABLE>

                  (d) The Bonds shall also be redeemed prior to maturity by the
         Issuer in whole or in part on the first Interest Payment Date for which
         adequate notice of redemption can be given hereunder, in the amount of
         any prepayment of the Bond Loan required under Section 8.4 of the
         Agreement at a redemption price equal to 100% of the principal amount
         redeemed plus accrued Interest thereon to the redemption date.

                  (e) In the event that less than all of the Bonds are to be
         redeemed at any time, selection of the Bonds for redemption will be
         made by the Trustee by lot and, for such purposes, the Trustee shall
         treat such Bonds in a denomination greater than $1,000 in principal
         amount as if it were that number of separate Bonds derived by dividing
         its denomination by $1,000.

                  Section 3.02 Notice of Redemption or Purchase.

                  (a) Whenever Bonds are to be redeemed pursuant to Section 3.01
         hereof or purchased pursuant to Section 3.05 hereof, the Trustee shall
         give written notice of the redemption or purchase of the Bonds in the
         name of the Issuer stating: (i) the Bonds or portions thereof to be
         redeemed or purchased; (ii) the redemption or purchase date; (iii) the
         redemption or purchase price; and (iv) that if moneys or Government
         Obligations sufficient for such redemption have been deposited with the
         Trustee, from and after the redemption date, Interest on any Bond so
         called for redemption shall cease to accrue.

                  (b) Notice required by this Section 3.02 shall be given by the
         Trustee by first-class mail, postage prepaid, at least thirty (30) days
         and not more than forty-five (45) days prior to the redemption or
         purchase date, to the registered owners of any Bonds to be redeemed or
         purchased at the addresses of such registered owners appearing on the
         registration books. Any failure to give such notice or any defect
         therein shall not affect the proceedings for redemption or purchase of
         any Bond as to which no such failure or defect has occurred.

                  Section 3.03 Payment of Redeemed Bonds.

                  (a) After notice shall have been given in the manner provided
         in Section 3.02 hereof, Bonds or portions thereof called for redemption
         shall become due and payable on the redemption date so designated, upon
         presentation and surrender of such Bonds at the Principal Corporate
         Trust Office of the Trustee. If there shall be called for redemption
         less than all of a Bond, the Issuer shall, upon the surrender of such
         Bond and without charge to the Owner thereof, (i) pay the redemption
         price of the $1,000 unit or units of principal amount called for
         redemption and (ii) execute and cause the Trustee to authenticate and
         deliver for the unredeemed balance of the principal amount of any such
         Bond so surrendered new Bonds in any authorized denominations having
         the same maturity and interest rate and of the same series as such
         redeemed Bonds.

                                       28
<PAGE>
                  (b) If, on the redemption date, moneys or Government
         Obligations in an amount sufficient for the redemption of all Bonds or
         portions thereof to be redeemed, and Interest thereon to the redemption
         date, shall be held by the Trustee, the Bonds or portions thereof so
         called for redemption shall cease to bear Interest and such Bonds or
         portions thereof shall no longer be Outstanding hereunder or be secured
         by or entitled to the benefits of this Indenture. If such moneys or
         Government Obligations shall not be so available on or prior to the
         redemption date, such Bonds or portions thereof shall continue to bear
         Interest until paid at the same rate as would have been applicable had
         they not been called for redemption and shall continue to be secured by
         and entitled to the benefits of this Indenture.

                  Section 3.04 Tender Option Right of Holders.

                  (a) In the event that there shall occur a Designated Event (as
         defined below) each Holder of Bonds shall have the right (the "Tender
         Option Right"), at such Holder's option, to tender all or any part of
         the Bonds owned by it (but only in denominations of $1,000 or any
         integral multiple thereof) for purchase on the date (the "Repurchase
         Date") that is 90 days after notice of such Designated Event, at a
         purchase price equal to 101% of the principal amount thereof, plus any
         accrued Interest, if any, thereon to the Repurchase Date (the
         "Repurchase Price").

                  (b) On or before the thirtieth (30th) day following the
         Designated Event, at the request of the Company (which request the
         Company has agreed to make in Section 4.2(e) of the Agreement not more
         than 21 days after the Designated Event), the Trustee shall promptly
         give notice of a Designated Event and of the Tender Option Right
         arising as a result thereof by registered or certified mail to each
         Bondholder at such Holder's address appearing in the registration
         books. The Trustee shall also cause a copy of such notice to be
         published in The Wall Street Journal or another newspaper of general
         circulation in the Borough of Manhattan, the City of New York. Each
         such notice of a Tender Option Right shall state:

                           (i) the Repurchase Date;

                           (ii) the date by which the Tender Option Right must
                  be exercised which date shall not be earlier than forty-five
                  (45) days nor later than thirty (30) days prior to the
                  Repurchase Date (the "Repurchase Exercise Date");

                           (iii) the Repurchase Price, if the Tender Option
                  Right is exercised; and

                           (iv) a description of the procedure which a
                  Bondholder must follow to exercise the Tender Option Right.

         No failure of the Company to request the Trustee to give, or any
         failure of the Trustee to give, the foregoing notice shall limit any
         Bondholder's right to exercise a Tender Option Right.

                  (c) To exercise a Tender Option Right, a Holder of Bonds shall
         deliver to the Trustee and the Company (or an agent designated by the
         Company for such purpose in

                                       29
<PAGE>
         the notice referred to in (b) above) on or prior to the Repurchase
         Exercise Date (i) written notice of the Bondholder's exercise of the
         Tender Option Right, which notice shall set forth the name of the
         Holder, the principal amount of the Bonds (or portion thereof) being
         tendered for purchase, and a statement that the Tender Option Right is
         being exercised thereby and (ii) the Bonds with respect to which the
         Tender Option Right is being exercised, duly endorsed for transfer.
         Such written notice shall be irrevocable unless the rescission thereof
         is duly approved by the Continuing Directors.

                  (d) In the event a Tender Option Right shall be exercised in
         accordance with the terms hereof, the Company has agreed, in Section
         4.2(e) of the Agreement, to pay or cause to be paid the Repurchase
         Price for any Bond or Bonds tendered for purchase in cash to the Holder
         of such Bond or Bonds on the Repurchase Date to the extent that
         remarketing proceeds are not available or are insufficient to pay the
         Repurchase Price thereof in full. In the event that a Tender Option
         Right is exercised with respect to less than the entire principal
         amount of a surrendered Bond, the Issuer shall execute and deliver to
         the Trustee and the Trustee shall authenticate for issuance in the name
         of the Holder a new Bond or Bonds in the aggregate principal amount of
         that portion of such surrendered Bond or Bonds not tendered for
         purchase.

                  (e) In the event that a Designated Event has occurred and
         notice thereof has been given to Bondholders as provided in this
         Section 3.04, the Company shall have the option to remarket all or any
         Bonds tendered by a Bondholder pursuant to its Tender Option Right,
         provided that the Remarketing Conditions have been satisfied and, in
         connection therewith, shall have the right to appoint a remarketing
         agent (the "Remarketing Agent") reasonably acceptable to the Issuer in
         order to remarket such Bonds. The Company shall notify the Issuer and
         Trustee of its election to remarket Bonds and of the appointment of a
         Remarketing Agent in writing no less than fifteen (15) days prior to
         the Repurchase Date. In connection with the appointment of any
         Remarketing Agent, the Company shall promptly enter into a written
         agreement with the Remarketing Agent in which, among other things, (i)
         the Remarketing Agent shall designate its principal office to the
         Company, the Issuer and the Trustee, (ii) the Remarketing Agent shall
         agree to perform the duties and obligations imposed upon it hereunder,
         (iii) the Remarketing Agent shall agree to hold all money delivered to
         it hereunder in trust for the benefit of the Person which shall have so
         delivered such money until the Bonds to be purchased with such money
         shall have been delivered to or for the account of such Person, and
         (iv) the Company and the Remarketing Agent shall agree upon the
         compensation to be paid to the Remarketing Agent by the Company for
         remarketing the Bonds.

                  (f) If a Remarketing Agent has been appointed to remarket
         Bonds tendered for purchase pursuant to this Section 3.04, the
         Remarketing Agent shall use its best efforts to remarket such Bonds at
         the highest possible purchase price at which all Bonds to be tendered
         for purchase pursuant to Section 3.04 hereof can be sold and, not less
         than seven (7) days prior to the Repurchase Date, the Remarketing Agent
         shall provide the Company with written notice of such purchase price
         (the "Remarketing Price"). Upon receipt of such notice, the Company
         shall have the option to either direct the Remarketing Agent to proceed
         with the remarketing of such Bonds at the Remarketing Price or to

                                       30
<PAGE>
         direct that the Remarketing Agent reject the Remarketing Price and
         cease all further efforts to remarket such Bonds. In any event, such
         direction to the Remarketing Agent will be given by the Company to the
         Remarketing Agent in writing and a copy of such notice will also be
         delivered to the Trustee no later than five (5) days prior to the
         Repurchase Date. If the Company has elected to proceed with the
         remarketing of such Bonds, then no later than the Business Day prior to
         the Repurchase Date, the Remarketing Agent shall provide the Trustee in
         writing with the names, addresses, tax identification numbers and all
         other information requested by the Trustee relating to the purchasers
         of the Bonds which have been remarketed by the Remarketing Agent, and
         shall further provide the Trustee and the Company with the amount of
         the Remarketing Price to be paid by each of such purchasers. By no
         later than 10:00 a.m., New York, New York time on the Repurchase Date,
         the Remarketing Agent shall provide the Trustee and the Company with
         written notice of the amount of proceeds being held by the Remarketing
         Agent with respect to Bonds which have been remarketed and shall, no
         later than 10:30 a.m., New York, New York time on the Repurchase Date,
         deliver such proceeds to the Trustee. The Trustee shall prepare new
         Bonds (with appropriate changes, deletions and insertions) for each
         Bond purchased on the Repurchase Date, shall register such new Bonds in
         the name of the Persons identified by the Remarketing Agent as the
         purchasers thereof, or in the name of the Company if such Bonds have
         not been remarketed but have been purchased by the Company pursuant to
         the provisions hereof and of Section 4.2(e) of the Agreement, and shall
         deliver such new Bonds to such purchasers or to the Company, as the
         case may be, by 4:00 p.m., New York, New York time on the Repurchase
         Date.

                  (g) To the extent that the remarketing proceeds from the
         remarketing of Bonds pursuant to this Section 3.04 are unavailable
         (either because no remarketing has occurred or because the Remarketing
         Agent has failed to deposit any proceeds with respect to remarketed
         Bonds with the Trustee by 10:30 a.m., New York, New York time on the
         Repurchase Date) or are insufficient to pay the Repurchase Price in
         full on the Repurchase Date, then, in accordance with Section 4.2(e) of
         the Agreement, the Company shall be required to deposit with the
         Trustee, no later than 11:00 a.m., New York, New York time on the
         Repurchase Date, the amount of any such deficiency in order to effect
         the purchase of all Bonds tendered for purchase on the Repurchase Date.

                  (h) Notwithstanding the foregoing or anything to the contrary
         contained herein, no remarketing of any of the Bonds under this Section
         3.04 shall occur unless each of the following conditions has been fully
         satisfied (collectively, the "Remarketing Conditions"): (a) the Trustee
         shall have received an opinion of Bond Counsel to the effect that the
         remarketing of the Bonds will not adversely affect the exclusion from
         gross income of the Qualified Stated Interest or Original Issue
         Discount on the Bonds for Federal income tax purposes or the exemption
         from taxation by the State (except inheritance, estate and transfer
         taxes) of the Bonds and the income therefrom, and (b) the Trustee shall
         have received an official statement or remarketing memorandum of the
         Issuer with respect to the Bonds that are being remarketed.

                  (i) As used herein, a "Designated Event" means (A) any sale,
         lease or other transfer (in one transaction or a series of
         transactions) of more than 75% of

                                       31
<PAGE>
         the assets of the Company to any Person (other than a Wholly Owned
         Subsidiary of the Company); (B) a "person" or "group" (within the
         meanings of Sections 13(d) and 14(d)(2) of the Exchange Act (other than
         the Company's 1984 Employee Stock Ownership Plan or 1989 Employee Stock
         Ownership Plan or any other employee benefit plan of the Company)
         becomes the "beneficial owner" (as defined in Rule 13d-3 under the
         Exchange Act) of Capital Stock representing more than fifty percent
         (50%) of the voting power of such Capital Stock unless such acquisition
         of beneficial ownership of shares of voting power of Capital Stock of
         the Company occurs, directly or indirectly, in connection with the
         financing of a Permitted Acquisition; (C) Continuing Directors cease to
         constitute at least a majority of the Board of Directors of the
         Company; or (D) the stockholders of the Company approve any plan or
         proposal for the liquidation or dissolution of the Company.

                  (j) As used herein, the term "Continuing Director" shall mean
         a director who either was a member of the Board of Directors of the
         Company on the date of this Indenture or who became a director of the
         Company subsequent to such date and whose election, or nomination for
         election by the Company's stockholders, was duly approved by a majority
         of the Continuing Directors then on the Board of Directors of the
         Company.

                  Section 3.05 Purchase in Lieu of Redemption.

                  (a) Any Bonds called for redemption under this Indenture may
         be purchased by the Company on the date upon which such Bonds were to
         have been redeemed (the "Purchase in Lieu of Redemption Date") at a
         purchase price equal to the redemption price thereof, plus accrued
         Interest, if any, thereon to, but not including, the Purchase in Lieu
         of Redemption Date. On or prior to the designated Purchase in Lieu of
         Redemption Date, the Company shall give written notice to the Trustee
         and the Paying Agent of the aggregate principal amount of Bonds for
         which an election to purchase pursuant to this Section 3.05 is being
         made. Bonds to be purchased by the Company which are not delivered to
         the Trustee on the Purchase in Lieu of Redemption Date shall be deemed
         to have been purchased by the Company and the Company shall be the
         Owner of such Bonds for all purposes under this Indenture, and Interest
         accruing on such Bonds on and after the Purchase In Lieu of Redemption
         Date shall be payable solely to the Company. The Trustee shall
         authenticate (and the Issuer shall execute, if necessary) and deliver
         to the Company a new Bond as provided in Section 2.11 hereof.

                  (b) It is the intention of the parties hereto that the
         purchase of the Bonds pursuant to this Section 3.05 shall not
         constitute an optional prepayment of the Bond Loan or a merger or
         extinguishment of the indebtedness of the Company represented by the
         Agreement or the Bonds so purchased and that such Bonds shall for all
         purposes be regarded as Outstanding hereunder except as otherwise
         expressly provided herein. Upon the purchase of any Bond pursuant to
         this Section 3.05, the notice of redemption thereof shall nunc pro tunc
         be null, void and of no force and effect.

                                       32
<PAGE>
                                   ARTICLE IV

            BOND FUND, REBATE FUND, REVENUES AND APPLICATION THEREOF

                  Section 4.01 Establishment of Bond Fund. There is hereby
created and established with the Trustee a trust fund to be designated " Bond
Fund 2002 - Weirton Steel Corporation Project" (the "Bond Fund") which shall be
held, maintained and administered by the Trustee in accordance with this
Indenture.

                  Within the Bond Fund, there is hereby created and established
certain trust accounts to be designated "General Account" and the "Repurchase
Moneys Account."

                  Section 4.02 Moneys to be Held in Trust. All moneys deposited
with, paid to or received by the Trustee for the account of the Issuer pursuant
to this Indenture shall be held by the Trustee in trust and shall be subject to
the Lien of this Indenture and held for the security of all Holders of the Bonds
until paid in full; provided, however, that moneys which have been deposited
with, paid to or received by the Trustee for the redemption or purchase in lieu
thereof of a portion of the Bonds, notice of the redemption of which has been
given shall be held in trust for and subject to a Lien in favor of only the
Holders of Bonds so called for redemption or purchase in lieu thereof; provided,
further, however, that moneys which have been deposited with, paid to or
received by the Trustee for the purchase of Bonds tendered for purchase pursuant
to Section 3.04 hereof, shall be held in trust for and subject to a Lien in
favor of only the Holders of Bonds so tendered for purchase.

                  Section 4.03 Payments into the Bond Fund. There shall be
deposited in the Bond Fund from time to time all payments specified in Sections
4.2(a), 4.2(d) and 4.2(e) of the Agreement and all other moneys received by the
Trustee under and pursuant to any of the provisions of the Agreement or the
Indenture which are required to be or which are accompanied by directions that
such moneys are to be paid into the Bond Fund. Any moneys deposited in the Bond
Fund pursuant to Sections 4.2(a) or 4.2(d) of the Agreement and any moneys paid
by the Company for the purchase of Bonds in lieu of redemption pursuant to
Section 3.05 hereof shall be placed in the General Account of the Bond Fund. Any
moneys paid by the Company under Section 4.2(e) of the Agreement and any
proceeds of a remarketing of the Bonds pursuant to Section 3.04 hereof shall be
deposited in the Repurchase Moneys Account of the Bond Fund.

                  Section 4.04 Use of Moneys in the Bond Fund. Except as
provided in Section 4.05 hereof, moneys in the Bond Fund (other than in the
Repurchase Moneys Account thereof) shall be used solely for the payment of the
principal of, premium, if any, and Interest on the Bonds as the same mature and
come due and for the redemption of the Bonds or the purchase in lieu thereof
prior to maturity. The Issuer hereby authorizes and directs the Trustee to
withdraw moneys from the Bond Fund (other than from the Repurchase Moneys
Account thereof) to pay the principal of, premium, if any, and Interest on the
Bonds as the same become due and payable and to make said funds so withdrawn
available to the Paying Agent for the purpose of paying such principal of,
premium, if any, and Interest. Moneys in the Repurchase Moneys Account shall be
used for the purchase of Bonds pursuant to Section 3.04 hereof and for no other
purpose. Moneys in the Repurchase Moneys Account shall not be subject to the
Lien of the Indenture or

                                       33
<PAGE>
otherwise available for the payment of principal of, premium, if any, and
Interest on the Bonds except for the purchase of Bonds pursuant to Section 3.04
hereof.

                  Section 4.05 Investment of Moneys; Tax Covenants.

                  (a) Any moneys held as a part of the Bond Fund or any other
         fund established pursuant to this Indenture shall be invested or
         reinvested by the Trustee to the extent permitted by law, at the
         written request of and as directed by an Authorized Representative of
         the Company, in any of the Authorized Investments.

                  (b) The Trustee may make any and all such investments through
         its own bond or investment department or the bond or investment
         department of any bank or trust company under common control with the
         Trustee. All such investments shall at all times be a part of the fund
         or account from which the moneys used to acquire such investments shall
         have come and all income and profits on such investments shall be
         credited to, and losses thereon shall be charged against, such fund.
         All investments hereunder shall be registered in the name of the
         Trustee, as Trustee under the Indenture. All investments hereunder
         shall be held by or under the control of the Trustee. The Trustee may
         sell and reduce to cash a sufficient amount of investments in the Bond
         Fund whenever the cash balance in the Bond Fund is insufficient,
         together with any other funds available therefor, to pay the principal
         and Interest on the Bonds or the purchase price thereof when due.

                  (c) Any investment herein authorized is subject to the
         condition that no use of the proceeds of the issuance of the Bonds or
         of any other moneys (including without limitation the proceeds of any
         insurance or any Condemnation award with respect to the Project) shall
         be made which would cause the Bonds to be "arbitrage bonds" within the
         meaning of such quoted term under Section 148 of the Code of 1986;
         provided, however, that the Company shall be solely responsible for the
         selection of any Authorized Investment under Section 4.05(a) hereof,
         and the Trustee shall be entitled to rely on any investment direction
         given to it by the Company pursuant to Section 4.05(a) above without
         liability to the Company, the Issuer, any Bondholder or any other
         Person in the event that any such investment shall cause all or any of
         the Bonds to be or become "arbitrage bonds" within the meaning of
         Section 148(a) of the Code of 1986.

                  (d) The Issuer shall not take any action or omit to take any
         action, or knowingly permit the Company to take any action or omit to
         take any action, that would cause the Qualified Stated Interest or
         Original Issue Discount on the Bonds not to be excludable from the
         gross income of the recipients thereof for Federal income tax purposes.

                  Section 4.06 Nonpresentment of Bonds.

                  (a) In the event any Bond shall not be presented for payment
         when the principal thereof becomes due, either at maturity, or at the
         date fixed for redemption thereof, or otherwise, if moneys or
         Government Obligations sufficient to pay any such Bond and Interest
         thereon shall have been made available to the Trustee for the benefit
         of the Owner thereof, all liability of the Issuer to the Owner thereof
         for the payment of such

                                       34
<PAGE>
         Bond shall forthwith cease, terminate and be completely discharged, and
         thereupon it shall be the duty of the Trustee to hold such funds,
         without liability for interest thereon, for the benefit of the Owner of
         such Bond who shall thereafter be restricted exclusively to such funds
         for any claim of whatever nature on his part under this Indenture with
         respect to such Bond.

                  (b) Any moneys or Government Obligations so deposited with and
         held by the Trustee not so applied to the payment of Bonds or Interest
         thereon within two (2) years after the date on which the same shall
         have become due shall be repaid by the Trustee to the Company upon
         direction of an Authorized Representative of the Company, and
         thereafter Owners of Bonds shall be entitled to look only to the
         Company for payment, and then to the extent of the amount so repaid,
         and all liability of the Trustee with respect to such money shall
         thereupon cease, and the Company shall not be liable for any Interest
         thereon and shall not be regarded as a trustee of such money. In the
         absence of a written request from the Company to return unclaimed funds
         to the Company, the Trustee shall from time to time deliver all
         unclaimed funds to or as directed by applicable escheat authorities, as
         determined by the Trustee in its sole discretion, in accordance with
         the customary practices and procedures of the Trustee. Any unclaimed
         funds held by the Trustee pursuant to this Section shall be held
         uninvested and without any liability for interest.

                  Section 4.07 Establishment of Rebate Fund.

                  (a) There is hereby established a special trust fund which
         shall be designated "Rebate Fund 2002 - Weirton Steel Corporation
         Project" (the "Rebate Fund") which shall be held separate and apart
         from all other funds established under this Indenture. The Trustee
         shall be the depository, custodian and disbursing agent for the Rebate
         Fund.

                  (b) To the extent there are excess amounts in the Bond Fund
         and rebatable arbitrage becomes payable to the United States, the
         Trustee shall transfer such excess amounts to the Rebate Fund. There
         shall also be deposited in the Rebate Fund such amounts as are required
         to be deposited therein as determined in accordance with Section 5.3(c)
         of the Agreement and certified in writing by the Company to the
         Trustee. Subject to the payment provisions provided in subsection (c)
         below, all amounts on deposit at any time in the Rebate Fund shall be
         held by the Trustee in trust, to the extent required to pay rebatable
         arbitrage to the United States of America, and neither the Company, the
         Issuer, nor the Bondholders shall have any rights in or claim to such
         moneys. All amounts held in the Rebate Fund shall be governed by this
         Section.

                  (c) The Trustee shall remit all rebate installments and a
         final rebate payment to the United States in accordance with written
         instructions received from the Company. The Trustee shall have no
         obligation to pay any amounts required to be rebated pursuant to this
         Section, other than from moneys held in the Rebate Fund or from other
         moneys provided to it by the Company. Any moneys remaining in the
         Rebate Fund after redemption or payment at maturity of all of the Bonds
         and payment and satisfaction of any rebatable arbitrage, as certified
         in writing by the Company to the Trustee, shall be withdrawn and paid
         to the Company. Any excess amounts on deposit in the Rebate

                                       35
<PAGE>
         Fund, as determined by the rebate analyst retained by the Company
         shall, at the Company's option, be returned to the Company or retained
         in the Rebate Fund as a credit against future deposits. The Trustee
         will retain such records with respect to the Rebate Fund as described
         in the arbitrage certificate executed in connection with the issuance
         of the Bonds.

                  (d) Notwithstanding any other provision of this Indenture, the
         obligation to pay rebatable arbitrage to the United States and to
         comply with all other requirements of this Section shall survive the
         defeasance or payment in full of the Bonds.

                  (e) Notwithstanding anything else contained in this Indenture
         to the contrary, unless specifically agreed to in a separate written
         agreement, neither the Trustee nor any Bondholder shall be liable or
         responsible for any calculation or determination which may be required
         in connection with or for the purpose of complying with Section 148 of
         the Code of 1986 or any successor statute, or any regulation, ruling or
         other judicial or administrative interpretation thereof, including,
         without limitation, the calculation of amounts required to be paid to
         the United States of America or the determination of the maximum amount
         which may be invested in Nonpurpose Investments having a Yield higher
         than the Yield on the Bonds, and neither the Trustee nor any Bondholder
         shall be liable or responsible for monitoring compliance by the Company
         or the Issuer with any of the requirements of Section 148 of the Code
         of 1986, or any applicable regulation, ruling or other judicial or
         administrative interpretation thereof, it being acknowledged and agreed
         that the obligations of the Trustee in this regard shall be limited to
         the receipt of funds for deposit in the Rebate Fund and the
         disbursement thereof pursuant to written instructions of the Company or
         the Issuer, as applicable, and the investment of moneys received by the
         Trustee pursuant to the written instructions of the Company.

                  (f) The term "Nonpurpose Investments" shall mean any
         investment property (as defined in Section 148(b) of the Code of 1986)
         which is acquired with the Gross Proceeds of the Bonds and which is not
         acquired to carry out the governmental purpose of the Bonds.

                  (g) The term "Gross Proceeds" shall mean the aggregate of:

                           (i) the net amount of Bond proceeds received by the
                  Issuer as a result of the sale of the Bonds;

                           (ii) all amounts received by the Issuer as a result
                  of the investment of the Bond proceeds;

                           (iii) any amounts held in any fund under this
                  Indenture to the extent that the Issuer reasonably expects to
                  use the amounts in such fund to pay principal of, premium, if
                  any, or Interest on the Bonds; and

                           (iv) any securities or obligations pledged by the
                  Issuer or by the Company as security for the payment of
                  principal of, premium, if any, or Interest on the Bonds.

                                       36
<PAGE>
                  (h) The term "Yield" shall mean yield as defined in Section
         148(h) of the Code of 1986 and any applicable Treasury Regulations
         promulgated with respect thereto.

                  Section 4.08 Additional Funds. The Trustee is hereby
authorized to establish and create, from time to time, such other funds and
accounts as may be necessary for the deposit of moneys (including, without
limitation, insurance proceeds and/or Condemnation awards) received by the
Trustee pursuant to the terms hereof and of the Deeds of Trust, the Security
Agreement or any of the other Bond Documents.

                                    ARTICLE V

                        GENERAL COVENANTS AND PROVISIONS

                  Section 5.01 Authority of Issuer; Validity of Indenture and
Bonds. The Issuer hereby covenants that it is duly authorized under the
Constitution and laws of the State, including, particularly and without
limitation, the Act, to issue the Bonds authorized hereby, to execute this
Indenture and to pledge the revenues and receipts in the manner and to the
extent herein set forth; that all action on its part for the issuance of the
Bonds authorized hereby and the execution and delivery of this Indenture has
been duly and effectively taken; and that the Bonds in the hands of the Holders
thereof are and will be valid and enforceable limited obligations of the Issuer
according to the import thereof.

                  Section 5.02 Performance of Covenants. The Issuer hereby
covenants, and the Trustee by executing this Indenture covenants, that each will
faithfully observe and perform at all times any and all covenants, undertakings,
stipulations and provisions on its part to be observed or performed contained
(i) in this Indenture, (ii) in any Bond executed, authenticated and delivered
hereunder and (iii) in the Agreement, the Assignment Agreement, the Deeds of
Trust or in the Security Agreement.

                  Section 5.03 Payment of Principal, Premium and Interest. The
Issuer hereby covenants that it will promptly pay or cause to be paid the
principal of, whether at maturity, by acceleration or call for redemption or
otherwise, premium, if any, and Interest on and purchase price of every Bond
issued under this Indenture at the place, on the dates and in the manner
provided herein and therein. All such principal, premium, Interest and purchase
price payments on the Bonds shall be payable solely from revenues and receipts
derived from the Agreement (except to the extent derived from income from the
investment thereof) and otherwise as provided herein and in the Agreement and
from the proceeds of any security therefor which amounts are hereby specifically
pledged to the payment thereof in the manner and to the extent herein specified.
Nothing in the Bonds or in this Indenture shall be construed as a pledge of any
funds or assets of the Issuer other than those pledged hereby. Neither the State
nor any political subdivision thereof (other than the Issuer to the extent
provided herein) shall in any event be liable for the payment of any such
principal, premium, Interest or purchase price payment on any of the Bonds or
for the performance of any pledge, obligation or agreement undertaken by the
Issuer.

                  Section 5.04 Revenues from Agreement. The Issuer hereby
covenants that so long as any of the Bonds are Outstanding it will deposit, or
cause to be deposited, with the

                                       37
<PAGE>
Trustee for its account all revenues and receipts derived pursuant to the
Agreement, this Indenture or otherwise to pay the Debt Service Payments on the
Bonds or the purchase price thereof as the same become due and payable.

                  Section 5.05 Priority of Lien of Indenture. The Issuer hereby
covenants that it has not created or permitted to be created any Lien upon the
Trust Estate, except for the security interest in the Trust Estate created by
this Indenture, and the Issuer covenants not to create or to permit to be
created any Lien upon the Trust Estate or any part thereof other than the Lien
of this Indenture.

                  Section 5.06 Enforcement of Duties and Obligations of the
Company. The Issuer hereby covenants that, to the extent requested by the
Trustee, it shall take all legally available action to cause the Company to
perform fully all duties and acts, and to comply fully with the covenants of the
Company, required by the Agreement, in the manner and at the times provided in
the Agreement.

                  Section 5.07 Recordation of Indenture and Agreement; Filing of
Security Instruments.

                  (a) The Issuer hereby covenants that it will cause this
         Indenture, the Agreement (or a memorandum thereof), the Deeds of Trust,
         the Security Agreement and all supplements hereto and thereto, together
         with all necessary security instruments and financing statements, to be
         recorded or filed, as the case may be, in such manner and in such
         places, if any, as may be required by law in order to perfect the Lien
         of, and the security interests created by, this Indenture.

                  (b) The Issuer hereby covenants that it will execute, and, to
         the extent requested by the Trustee or otherwise required, will cause
         the Company or the Trustee to execute, for filing where appropriate,
         all documents, including, without limitation, continuation statements
         under the Uniform Commercial Code of the State, in such manner and in
         such places as may be required by the law of the State in order to
         protect and maintain in force the Lien of, and the security interests
         created by, this Indenture.

                  Section 5.08 Rights Under Agreement, Deeds of Trust and the
Security Agreement. The Agreement, the Deeds of Trust and the Security
Agreement, duly executed counterparts of which have been filed with the Trustee,
set forth the respective covenants and obligations of the Issuer and the
Company. Reference is hereby made thereto for detailed statements of the
covenants, obligations and rights of the Company and the Issuer thereunder. The
Issuer agrees that the Trustee, in its name or in the name of the Issuer, may
enforce all rights of the Issuer and all obligations of the Company under and
pursuant to the Agreement, the Deeds of Trust and the Security Agreement, to the
extent pledged and assigned to the Trustee hereunder for and on behalf of the
Bondholders, whether or not a Default exists hereunder.

                  Section 5.09 List of Bondholders.

                  (a) The Trustee, as Bond Registrar, shall maintain a list of
         the names and addresses of the Holders of all Bonds which from time to
         time may be registered on the registration books kept by the Trustee.
         At reasonable times and under reasonable

                                       38
<PAGE>
         regulations established by the Trustee, said list may be inspected and
         copied by the Company or any Holder (or a designated representative
         thereof) of Bonds then Outstanding.

                  (b) Each Bondholder, by the purchase and acceptance of a Bond,
         consents to the disclosure of his name and address and the principal
         amount of Bonds held by him in accordance with this Section 5.09 and
         agrees that the Trustee shall not be held accountable for the
         disclosure of any such information made in accordance with this Section
         5.09.

                  Section 5.10 Cancellation. Unless otherwise specified in this
Indenture, all Bonds which have been paid, redeemed or surrendered for transfer
or exchange or have matured shall be cancelled and cremated or otherwise
destroyed by the Trustee. The Trustee shall deliver to the Issuer and the
Company a certificate evidencing such cremation or destruction.

                  Section 5.11 Payments Due on Saturdays, Sundays and Holidays.
In any case where the date fixed for payment of Interest or premium on or
principal or purchase price of the Bonds or the date fixed for redemption or
purchase of any Bonds shall not be a Business Day, then payment of such
Interest, premium, principal or purchase price need not be made on such date but
may be made on the next succeeding Business Day with the same force and effect
as if made on such date of maturity or the date fixed for such redemption or
purchase, as the case may be.

                  Section 5.12 Instrument of Further Assurance. The Issuer will
do, execute, acknowledge and deliver or cause to be done, executed, acknowledged
and delivered, such indentures supplemental hereto and such further acts,
instruments and transfers as the Trustee may reasonably require for the better
assuring, transferring, conveying, pledging, assigning and confirming unto the
Trustee all and singular the amounts pledged hereby to the payment of the
principal of, premium, if any, and Interest on the Bonds. The Issuer, except as
herein and in the Agreement provided, will not sell, convey, mortgage, encumber
or otherwise dispose of any part of the amounts, revenues and receipts payable
under the Agreement or its rights under the Agreement.

                  Section 5.13 Undertaking to Provide Ongoing Disclosure. The
Company has undertaken in the Continuing Disclosure Agreement to provide ongoing
disclosure for the benefit of the Bondholders pursuant to Section (b)(5)(i) of
the Securities and Exchange Commission Rule 15c2-12 under the Exchange Act. The
Continuing Disclosure Agreement is hereby assigned by the Issuer to the Trustee
for the benefit of the Bondholders. Such assignment is a present absolute
assignment and not the assignment of a security interest. The Company's
obligations under the Continuing Disclosure Agreement shall be enforceable by
any Bondholder and the Trustee.

                                       39
<PAGE>

                                   ARTICLE VI

                             DISCHARGE OF INDENTURE

            Section 6.01 Discharge of Indenture. If (i) the Issuer shall pay or
cause to be paid, in accordance with the provisions of this Indenture, to the
Owners of the Bonds, the principal of, premium, if any, and Interest due or to
become due on all the Bonds at the times and in the manner stipulated therein,
(ii) the Issuer shall not then be in default in the performance of any of its
other covenants and promises in the Bonds or in this Indenture and (iii) the
Issuer shall pay or cause to be paid to the Trustee and any additional Paying
Agents all sums of money due or to become due according to the provisions
hereof, then these presents and the estate and rights hereby granted shall
cease, terminate and be void, whereupon the Trustee shall cancel and discharge
the Lien of this Indenture, and execute and deliver to the Issuer such
instruments in writing as shall be required to release the Lien hereof and
reconvey, release, assign and deliver unto the Issuer any and all of the Trust
Estate except (i) amounts in the Bond Fund required to be paid to the Company
under the terms of this Indenture, (ii) amounts held by the Trustee for the
payment of the principal or purchase price of, premium, if any, or Interest on
particular Bonds, and (iii) amounts held in the Rebate Fund required to be paid
to the United States.

            Section 6.02 Defeasance of Bonds.

            (a) Any Bond shall be deemed to be paid within the meaning of this
      Article and for all purposes of this Indenture when (i) payment of the
      principal of and premium, if any, on such Bond, plus Interest thereon to
      the due date thereof (whether such due date is by reason of maturity or
      upon redemption as provided herein), either (1) shall have been made or
      caused to be made in accordance with the terms thereof, or (2) shall have
      been provided for by irrevocably depositing with the Trustee, in trust and
      irrevocably set aside exclusively for such payment, (A) moneys sufficient
      to make such payment and/or (B) Government Obligations maturing as to
      principal and interest in such amounts and at such times, without
      reinvestment, as will insure the availability of sufficient moneys to make
      such payment, (ii) all necessary and proper fees, compensation and
      expenses of the Trustee, any additional Paying Agent and the Issuer
      pertaining to the Bonds with respect to which such deposit is made,
      including payments required to be made to the Rebate Fund, shall have been
      paid or the payment thereof provided for to the satisfaction of the
      Trustee, and (iii) the Trustee is provided with an opinion of Bond Counsel
      dated the date of the defeasance to the effect that the defeasance of the
      Bonds pursuant to this Section 6.02 shall not adversely affect the
      tax-exempt status of the Qualified Stated Interest or Original Issue
      Discount on the Bonds. At such time as a Bond shall be deemed to be paid
      hereunder, as aforesaid, such Bond shall no longer be secured by or
      entitled to the benefits of this Indenture, except for the purposes of any
      such payment from such moneys or Government Obligations.

            (b) Notwithstanding the foregoing, no deposit under Section
      6.02(a)(i)(2) above shall be deemed payment of such Bonds as aforesaid
      until (i) proper notice of redemption of such Bonds shall have been
      previously given in accordance with Article III of this Indenture or, in
      the event said Bonds are not by their terms subject to redemption within
      the next succeeding forty-five (45) days, until the Company shall have
      given the

                                       40
<PAGE>
      Trustee on behalf of the Issuer, in form satisfactory to the Trustee,
      irrevocable instructions to notify, as soon as practicable, the Owners of
      the Bonds that the deposit required by Section 6.02(a)(i)(2) hereof has
      been made with the Trustee and that such Bonds are deemed to have been
      paid in accordance with this Section 6.02 and stating the maturity or
      redemption date upon which moneys are to be available for the payment of
      the principal of such Bonds, plus Interest thereon to the due date
      thereof, plus premium, if any; or (ii) the maturity of such Bonds.

            (c) All moneys so deposited with the Trustee as provided in this
      Section 6.02 may also be invested and reinvested, at the direction of the
      Company, in Government obligations, maturing in the amounts and times as
      hereinbefore set forth, and all income from all Government Obligations in
      the hands of the Trustee pursuant to this Section 6.02 which is not
      required for the payment of the Bonds and Interest (and premium, if any)
      thereon with respect to which such moneys shall have been so deposited
      shall be paid to the Company as and when realized and collected.

            (d) The Issuer hereby covenants that no deposit will knowingly be
      made or accepted and no use knowingly made of any such deposit which would
      cause the Bonds to be treated as "arbitrage bonds" within the meaning of
      Section 148(a) of the Code of 1986.

            (e) Notwithstanding any other provision of this Indenture, all
      moneys or Government Obligations set aside and held in trust pursuant to
      the provisions of this Section 6.02 for the payment of Bonds (including
      Interest and any premium thereon) shall be applied to and used solely for
      the payment of the particular Bonds (including the Interest and any
      premium thereon) with respect to which such moneys or Government
      obligations have been so set aside in trust.

            (f) Anything in Article IX hereof to the contrary notwithstanding,
      if moneys or Government Obligations have been deposited or set aside with
      the Trustee pursuant to this Section 6.02 for the payment of Bonds and
      such Bonds shall not have in fact been actually paid in full, no amendment
      to the provisions of this Section 6.02 shall be made without the consent
      of the Owner of each Bond affected thereby.

                                   ARTICLE VII

                              DEFAULTS AND REMEDIES

            Section 7.01 Events of Default. If any of the following events
occur, it is hereby declared to constitute an "Event of Default" or "Default"
hereunder:

            (a) A default in the payment of Interest on any Bond within three
      (3) days after such payment was due;

            (b) A default in the payment of all or any part of the principal of
      or premium, if any, on any of the Bonds as and when the same shall become
      due and payable either at maturity, by declaration or otherwise;

                                       41
<PAGE>
            (c) A default in the performance or observance of any other
      covenant, agreement or undertaking on the part of the Issuer contained in
      this Indenture or in the Bonds and the continuance thereof for a period of
      ninety (90) days after written notice thereof given to the Issuer by the
      Trustee or by the Owners of not less than twenty-five percent (25%) in
      aggregate principal amount of Outstanding Bonds;

            (d) A default in the due and punctual payment of the purchase price
      of any Bond tendered by the Holder thereof pursuant to Section 3.04 or
      Section 3.05 of this Indenture at the time required by Section 3.04 or
      Section 3.05 hereof; or

            (e) The occurrence and continuance of any other "Event of Default"
      as defined in and under the Agreement.

            Section 7.02 Acceleration. Upon the occurrence of any Event of
Default under Section 7.01 hereof, the Trustee may, and at the written request
of the owners of not less than twenty-five percent (25%) in aggregate principal
amount of Outstanding Bonds shall, by notice in writing delivered to the Issuer
and the Company, declare the principal of all Bonds and the Interest accrued
thereon to the date of such acceleration immediately due and payable. Upon any
declaration of acceleration hereunder, the Trustee shall immediately declare the
payments required to be made by the Company under Sections 4.2(a) and 4.5 of the
Agreement to be immediately due and payable in an amount sufficient to pay the
principal of all Outstanding Bonds and the accrued Interest (and any premium)
thereon to the date of acceleration.

            Section 7.03 Other Remedies; Rights of Owners of Bonds.

            (a) Upon the occurrence of an Event of Default, the Trustee may
      pursue any available remedy at law or in equity to enforce the payment of
      the principal of, premium, if any, and Interest on the Outstanding Bonds.
      Such remedies shall include but not be limited to taking whatever action
      at law or in equity may appear necessary or desirable to collect the
      payments on the Bonds and the sums payable hereunder and under the
      Agreement then due and thereafter to become due, or to enforce performance
      and observance of any obligation, agreement or covenant of the Company
      under the Agreement, including, without limitation, the remedies of a
      secured creditor under the Uniform Commercial Code of the State.

            (b) If an Event of Default shall have occurred and be continuing and
      if requested so to do by the Owners of twenty-five percent (25%) in
      aggregate principal amount of Outstanding Bonds and provided the Trustee
      is indemnified as provided in Section 8.01(b)(xiii) hereof, the Trustee
      shall be obligated to exercise such one or more of the rights and powers
      conferred by this Section and by Section 8.03 hereof, as the Trustee,
      being advised by counsel, shall deem most expedient in the interests of
      the Owners of Bonds.

            (c) No remedy by the terms of this Indenture conferred upon or
      reserved to the Trustee (or to the Owners of Bonds) is intended to be
      exclusive of any other remedy, but each and every such remedy shall be
      cumulative and shall be in addition to any other

                                       42
<PAGE>
      remedy given to the Trustee or to the Owners of Bonds hereunder or now or
      hereafter existing at law or in equity.

            (d) No delay or omission to exercise any right or power accruing
      upon any Default shall impair any such right or power or shall be
      construed to be a waiver of any such Default or acquiescence therein; such
      right or power may be exercised from time to time as often as may be
      deemed expedient.

            (e) No waiver of any Event of Default hereunder, whether by the
      Trustee or by the Owners of Bonds, shall extend to or shall affect any
      subsequent Event of Default or shall impair any rights or remedies
      consequent thereon.

            Section 7.04 Right of Owners of Bonds to Direct Proceedings.
Anything in this Indenture to the contrary notwithstanding, the Owners of a
majority in aggregate principal amount of the Outstanding Bonds shall have the
right, at any time, by an instrument or instruments in writing executed and
delivered to the Trustee, to direct the method and place of conducting all
proceedings to be taken in connection with the enforcement of the terms and
conditions of this Indenture, or for the appointment of a receiver or any other
proceedings hereunder provided that such direction shall not be otherwise than
in accordance with the provisions of law and of this Indenture.

            Section 7.05 Appointment of Receivers. Upon the occurrence of an
Event of Default, and upon the filing of a suit or other commencement of
judicial proceedings to enforce the rights of the Trustee and of the owners of
Bonds under this Indenture, the Trustee shall be entitled, as a matter of right,
to the appointment of a receiver or receivers of the Trust Estate and of the
revenues, earnings, income, products and profits thereof, pending such
proceedings, with such powers as the court making such appointment shall confer.

            Section 7.06 Waiver. Upon the occurrence of an Event of Default, to
the extent that such rights may then lawfully be waived, neither the Issuer nor
anyone claiming through or under it, shall set up, claim or seek to take
advantage of any appraisement, valuation, stay, extension or redemption laws of
any jurisdiction now or hereafter in force, in order to prevent or hinder the
enforcement of this Indenture, and the Issuer, for itself and all who may claim
through or under it, hereby waives, to the extent that it lawfully may do so,
the benefit of all such laws.

            Section 7.07 Application of Moneys. All moneys received by the
Trustee pursuant to any right given or action taken under the provisions of this
Article shall, after payment of the costs and expenses of the proceedings
resulting in the collection of such moneys and of the expenses, liabilities and
advances incurred or made by the Trustee, be deposited in the Bond Fund and
applied as follows:

            (a) Unless the principal of all the Bonds shall have become or shall
      have been declared due and payable, all such moneys shall be applied:

                  FIRST - To the payment to the persons entitled thereto of all
            installments of Interest then due on the Bonds, in the order of the
            maturity of the installments of such Interest (with interest on
            overdue installments of such Interest, to the extent permitted by
            law, at the Default Rate) and, if the amount available shall not

                                       43
<PAGE>
            be sufficient to pay in full any particular installment, then to the
            payment ratably, according to the amounts due on such installment,
            to the persons entitled thereto, without any discrimination or
            privilege; and

                  SECOND - To the payment to the persons entitled thereto of the
            unpaid principal of and premium, if any, on any of the Bonds which
            shall have become due (other than Bonds matured or called for
            redemption for the payment of which moneys are held pursuant to the
            provisions of this Indenture) (with interest on overdue installments
            of principal and premium, if any, to the extent permitted by law, at
            the Default Rate) and, if the amount available shall not be
            sufficient to pay in full all Bonds due on any particular date,
            together with any premium then due and owing thereon, then to the
            payment ratably according to the amount of principal and premium due
            on such date, to the persons entitled thereto without any
            discrimination or privilege; and

                  THIRD - To the payment to the persons entitled thereto as the
            same shall become due of the principal, premium, if any, and
            Interest on the Bonds which may thereafter become due and, if the
            amount available shall not be sufficient to pay in full Bonds due on
            any particular date, together with Interest and premium, if any,
            then due and owing thereon, payment shall be made ratably according
            to the amount of Interest, premium and principal due on such date to
            the persons entitled thereto without any discrimination or
            privilege.

            (b) If the principal of all the Bonds shall have become due or shall
      have been declared due and payable, all such moneys shall be applied to
      the payment of the principal and Interest then due and unpaid upon the
      Bonds, without preference or priority of principal over Interest or of
      Interest over principal, or of any installment of Interest over any other
      installment of Interest, or of any Bond over any other Bond, ratably,
      according to the amounts due, respectively, for principal and Interest, to
      the persons entitled thereto without any discrimination or privilege, with
      interest on overdue installments of principal or Interest, to the extent
      permitted by law, at the Default Rate.

            (c) If the principal of all the Bonds shall have been declared due
      and payable and if such declaration shall thereafter have been rescinded
      and annulled under the provisions of this Article, then, subject to the
      provisions of Section 7.07(b) hereof, in the event that the principal of
      all the Bonds shall later become due or be declared due and payable, the
      moneys shall be applied in accordance with the provisions of Section
      7.07(a) hereof.

            (d) Whenever moneys are to be applied pursuant to the provisions of
      this Section, such moneys shall be applied at such times, and from time to
      time, as the Trustee shall determine, having due regard for the amount of
      such moneys available for application and the likelihood of additional
      moneys becoming available for such application in the future. Whenever the
      Trustee shall apply such funds, it shall fix the date upon which such
      application is to be made and upon such date Interest on the amounts of
      principal to be paid on such dates shall cease to accrue. The Trustee
      shall give such notice as it may deem appropriate of the deposit with it
      of any such moneys

                                       44
<PAGE>
      and of the fixing of any such date, and shall not be required to make
      payment to the Owner of any Bond until such Bond shall be presented to the
      Trustee for appropriate endorsement or for cancellation if fully paid.

            (e) Whenever the principal of, premium, if any, and Interest on all
      Bonds have been paid under the provisions of this Section and all expenses
      and charges of the Trustee have been paid or duly provided for, any
      balance remaining in the Bond Fund shall be paid to the Company.

            Section 7.08 Remedies Vested in Trustee. All rights of action
(including the right to file proof of claims) under this Indenture or under any
of the Bonds may be enforced by the Trustee without the possession of any of the
Bonds or the production thereof in any trial or other proceeding relating
thereto, and any such suit or proceeding instituted by the Trustee shall be
brought in its name as Trustee without the necessity of joining as plaintiffs or
defendants any Owners of the Bonds, and any recovery of judgment shall be for
the equal and ratable benefit of the owners of the Outstanding Bonds.

            Section 7.09 Rights and Remedies of Owners of Bonds. No Owner of any
Bond shall have any right to institute any suit, action or proceeding at law or
in equity for the enforcement of this Indenture or for the execution of any
trust hereof or for the appointment of a receiver or any other remedy hereunder,
unless (i) an Event of Default has occurred of which the Trustee has been
notified as provided in Section 8.01(b)(viii) hereof, or of which by reason of
such subsection it is deemed to have notice, (ii) the Owners of twenty-five
percent (25%) in aggregate principal amount of Outstanding Bonds shall have made
a written request to the Trustee and shall have offered it reasonable
opportunity either to proceed to exercise the powers hereinbefore granted or to
institute such action, suit or proceeding and shall have offered to the Trustee
indemnity as provided in Section 8.01(b)(xiii), and (iii) the Trustee shall
thereafter fail or refuse to exercise the powers hereinbefore granted, or to
institute such action, suit or proceeding. Such notification, request and offer
of indemnity are hereby declared in every case at the option of the Trustee to
be conditions precedent to the execution of the powers and trusts of this
Indenture, and to any action or cause of action for the enforcement of this
Indenture, or for the appointment of a receiver or for any other remedy
hereunder; it being understood and intended that no one or more Owners of the
Bonds shall have any right in any manner whatsoever to affect, disturb or
prejudice the Lien of this Indenture by their action or to enforce any right
hereunder except in the manner herein provided, and that all proceedings at law
or equity shall be instituted, had and maintained in the manner herein provided
and for the equal and ratable benefit of the Owners of all Outstanding Bonds.
However, nothing contained in this Indenture shall affect or impair the right of
any Owner of Bonds to enforce the payment of the principal or purchase price of,
premium, if any, and Interest on any Bond at and after the maturity thereof, or
the obligation of the Issuer to pay the principal of, premium, if any, and
Interest on each of the Bonds issued hereunder to the respective Owners thereof
at the time and place, from the source and in the manner in the Bonds expressed.

            Section 7.10 Termination of Proceedings. In the event that the
Trustee shall have proceeded to enforce any right under this Indenture by the
appointment of a receiver or otherwise, and such proceedings shall have been
discontinued or abandoned for any reason, or shall have been determined
adversely, then and in every such case, the Issuer, the Trustee and the

                                       45
<PAGE>
Owners of Bonds shall be restored to their former positions and rights
hereunder, respectively, with regard to the property subject to this Indenture,
and all rights, remedies and powers of the Trustee shall continue as if no such
proceedings had been taken.

            Section 7.11 Waivers. The Trustee may in its discretion waive any
Event of Default hereunder and its consequences and rescind any declaration of
acceleration of principal, and shall do so upon the written request of the
Owners of (i) not less than a majority in aggregate principal amount of all
Outstanding Bonds in respect of which default in the payment of principal,
premium or Interest exists or (ii) not less than a majority in aggregate
principal amount of Outstanding Bonds in the case of any other Default;
provided, however, that any Event of Default under subsection (a) or (b) of
Section 7.01 hereof may not be waived unless prior to such waiver, all arrears
of principal, premium and Interest (other than principal of, premium, if any, or
Interest on the Bonds which became due and payable by declaration of
acceleration) and all expenses of the Trustee and any additional Paying Agent in
connection with such Event of Default shall have been paid or provided for to
the satisfaction of the Trustee. In case of any waiver or rescission described
above, or in case any proceeding taken by the Trustee on account of any such
Event of Default shall have been discontinued or concluded or determined
adversely, then and in every such case the Issuer, the Trustee and the Owners of
Bonds shall be restored to their former positions and rights hereunder,
respectively, but no such waiver or rescission shall extend to any subsequent or
other Event of Default, or impair any right consequent thereon.

                                  ARTICLE VIII

                                   THE TRUSTEE

            Section 8.01 Appointment of Trustee and Acceptance of Duties.

            (a) J.P. Morgan Trust Company, National Association is hereby
      appointed as Trustee and Paying Agent. The Trustee shall signify its
      acceptance of the duties and obligations of the Trustee, subject to the
      terms and conditions set forth in subsection (b) of this Section 8.01, by
      executing this Indenture.

            (b) The acceptance by the Trustee of the trusts imposed upon it by
      this Indenture and its agreement to perform said trusts is subject to the
      following express terms and conditions, and no implied covenants or
      obligations shall be read into this Indenture against the Trustee:

                  (i) Prior to the occurrence of an Event of Default, the
            Trustee undertakes to perform such duties and only such duties as
            are specifically set forth in this Indenture and the Agreement. In
            case an Event of Default has occurred and has not been cured or
            waived, the Trustee shall exercise such rights and powers vested in
            it by this Indenture and by the Agreement and shall use the same
            degree of care and skill in their exercise as a reasonable and
            prudent corporate trustee under a trust agreement would use, under
            the circumstances.

                  (ii) The Trustee may execute any of the trusts or powers
            conferred upon it in this Indenture and perform any of its duties
            hereunder by or through

                                       46
<PAGE>
            attorneys, agents or employees, shall be entitled to act upon the
            opinion or advice of its counsel concerning all matters with respect
            to the trust and its duties hereunder and may in all cases pay from
            the appropriate Fund as provided herein such reasonable compensation
            to all such attorneys and agents as may reasonably be employed in
            connection with the trust hereunder. The Trustee may act upon an
            opinion of Independent Counsel and shall not be responsible for any
            loss or damage resulting from any action taken or omitted to be
            taken in good faith in reliance upon such opinion of Independent
            Counsel.

                  (iii) The Trustee shall not be responsible for any recital
            herein or in the Bonds (except in respect of the Certificate of
            Authentication of the Trustee endorsed on the Bonds), for the
            validity of the execution by the Issuer of this Indenture, or any
            supplements hereto or any instruments of further assurance in
            connection herewith, for the sufficiency of the security for the
            Bonds, for any value of or title to any Property securing the Bonds
            or for the performance or observance of any covenants, conditions or
            agreements on the part of the Issuer under this Indenture or on the
            part of the Company under the Agreement.

                  (iv) The Trustee may become the Owner of Bonds secured hereby
            with the same rights which it would have if it were not the Trustee.

                  (v) The Trustee shall be protected in acting in good faith
            upon any notice, request, consent, certificate, order, affidavit,
            letter, telegram or other paper or document believed by it to be
            genuine and to have been signed or sent by the proper Person or
            Persons.

                  (vi) The Trustee, without further investigation, may rely upon
            the information and judgment of the Issuer contained in:

                        (1) a certificate, signed by an Authorized
                  Representative of the Issuer,

                              (x) as to the existence or nonexistence of any
                        fact or facts stated therein;

                              (y) as to the sufficiency or validity of any
                        instrument, paper or proceeding, other than a resolution
                        of the Issuer; and

                              (z) prior to the occurrence of an Event of Default
                        of which the Trustee has been notified as provided in
                        Section 8.01(b)(viii) hereof or of which by reason of
                        said Section the Trustee is deemed to have notice, as to
                        the necessity or appropriateness of any particular
                        dealing, transaction or action; and

                        (2) a certificate, signed by an Authorized
                  Representative of the Issuer, as to the due adoption and
                  validity of a resolution of the Issuer.

                                       47
<PAGE>
                  (vii) The permissive right of the Trustee to do or refrain
            from doing things enumerated in this Indenture shall not be
            construed as a duty and the Trustee shall not be answerable for
            other than its negligence or willful misconduct, subject to the
            limitation of paragraph (i) of this subsection (b).

                  (viii) The Trustee shall not be required to take notice or be
            deemed to have notice of any Event of Default hereunder except for
            Events of Default specified in subsections (a), (b) or (d) of
            Section 7.01 hereof, unless the Trustee shall be specifically
            notified in writing of such Event of Default by the Issuer or by the
            Owners of at least twenty-five percent (25%) in aggregate principal
            amount at maturity of Outstanding Bonds, and all notices or other
            instruments required by this Indenture to be delivered to the
            Trustee, must, in order to be effective, be delivered at the
            Principal Corporate Trust Office of the Trustee, and in the absence
            of such notice so delivered the Trustee may conclusively assume
            there is no Default except as aforesaid.

                  (ix) All moneys received by the Trustee shall be held in trust
            in the manner and for the purposes for which they were received but
            need not be segregated from other moneys held by the Trustee except
            to the extent expressly required by this Indenture or by law. The
            Trustee shall not be liable for interest on any moneys received
            hereunder.

                  (x) At any reasonable time, the Trustee and its duly
            authorized agents, experts and representatives may (but shall not be
            obligated to) inspect any of the security for the Bonds and any
            books, papers and records of the Issuer pertaining to the Project,
            the Collateral or the Bonds.

                  (xi) The Trustee shall not be required to give any bond or
            surety in respect of the execution of the trusts and powers intended
            to be conferred upon it in this Indenture or otherwise in respect of
            the premises.

                  (xii) The Trustee may (but shall not be obligated to) demand,
            as a condition precedent to the authentication of any Bonds, the
            withdrawal of any moneys, the release of any Property or the taking
            of any other action contemplated by this Indenture, any
            certificates, opinions, appraisals or other information or any
            corporate action or evidence thereof (in addition to any other
            prerequisites required in any other Section of this Indenture) which
            the Trustee may reasonably deem desirable for the purpose of
            establishing the right of the Issuer to the authentication of the
            Bonds, the withdrawal of the moneys, the release of the Property or
            the taking of such other action.

                  (xiii) Before taking any action under this Indenture (other
            than paying the principal or purchase price of, premium, if any, and
            Interest on the Bonds as the same shall become due and payable), the
            Trustee may require that satisfactory security or indemnity be
            furnished to it for the reimbursement of all expenses to which it
            may be put and to protect it against all liability, except liability
            which

                                       48
<PAGE>
            may be adjudicated to have resulted from its own negligence or
            willful misconduct by reason of any action so taken.

                  (xiv) The Trustee shall not be personally liable for any debts
            contracted, for damages arising from injury to Persons or damage to
            Property, for salaries or for non-fulfillment of contracts during
            any period when it may be in the possession of or managing any
            Property provided for in this Indenture, unless such have resulted
            from its negligence or willful misconduct.

                  (xv) The Trustee shall not be bound to make any investigation
            into the facts or matters stated in any resolution, certificate,
            statement, instrument, opinion, report, notice, request, direction,
            consent, order, bond, debenture or other paper or documents, but the
            Trustee, in its discretion may make such further inquiry or
            investigation, and it shall be entitled to examine the books,
            records and premises of the Issuer, personally or by agent or
            attorney.

            (c) None of the provisions of this Section 8.01 shall apply to or
      limit the Trustee's mandatory obligations under Section 7.02 hereof.

            Section 8.02 Fees, Charges and Expenses of Trustee. The Trustee
shall be entitled to payment of reasonable fees for its services rendered
hereunder and reimbursement of all advances, counsel fees and other expenses,
including allocated costs and expenses of in-house counsel and legal staff,
reasonably made or incurred by the Trustee in connection with such services. The
Trustee also shall be entitled to indemnification by the Company as provided in
the Agreement. Upon the occurrence of an Event of Default, but only upon the
occurrence of an Event of Default, the Trustee shall have a first Lien with
right of payment prior to payment on account of principal of, premium, if any
and Interest on any Bond upon the Trust Estate (exclusive of any moneys set
aside for the payment of Bondholders) for the foregoing fees, charges and
expenses of the Trustee. The Issuer shall have no liability to pay any fees,
charges or other expenses of the Trustee hereinabove mentioned except from the
amounts pledged under this Indenture.

            Section 8.03 Intervention by Trustee. In any judicial proceeding to
which the Issuer is a party, the Trustee may, and if so requested in writing by
the Owners of at least twenty-five percent (25%) in aggregate principal amount
of the Bonds then Outstanding shall, intervene, to the extent permitted by law,
on behalf of Bondholders. The Trustee shall not be required to intervene without
receiving indemnity from the Bondholders for such undertaking.

            Section 8.04 Notice to Owners of Bonds if Default Occurs. If an
Event of Default occurs of which the Trustee has been notified as provided in
Section 8.01(b)(viii) hereof, or of which by said subsection it is deemed to
have notice, then the Trustee shall promptly give notice thereof to the Issuer,
the Company and to the Owner of each Bond.

            Section 8.05 Merger or Consolidation of Trustee. Any corporation or
association into which the Trustee may be converted or merged, with which it may
be consolidated or to which it may sell or transfer its trust business and
assets as a whole or substantially as a whole, or any corporation or association
resulting from any such conversion, sale, merger, consolidation

                                       49
<PAGE>
or transfer to which it is a party shall be licensed to accept the trusts
created hereby and, ipso facto, shall be and become successor Trustee hereunder
and be and become vested with all the trusts, powers, discretions, immunities,
privileges and all other matters vested in its predecessor without the execution
or filing of any instrument or any further act, deed or conveyance on the part
of any of the parties hereto.

            Section 8.06 Resignation by the Trustee. The Trustee and any
successor Trustee may, at any time, resign from the trusts hereby created and be
discharged of its duties and obligations under this Indenture by giving not less
than thirty (30) days written notice to the Company and the Issuer and, by
first-class mail, to each registered Holder of Bonds then Outstanding. Such
resignation shall take effect upon the date specified in such notice, provided,
however, that in no event shall such a resignation take effect until a successor
Trustee or temporary Trustee has been appointed pursuant to Section 8.08 hereof.
The Trustee may petition a court to have a successor Trustee appointed
hereunder.

            Section 8.07 Removal of the Trustee. The Trustee may be removed at
any time without cause by an instrument which (i) is signed by the Owners of not
less than fifty percent (50%) in aggregate principal amount of the Bonds then
Outstanding, (ii) specifies the date on which such removal shall take effect and
the name and address of the successor Trustee and (iii) is delivered to the
Trustee, the Issuer and the Company. The Trustee may also be removed at any time
for any breach of trust or for acting or proceeding, in violation of, or for
failing to act or proceed in accordance with, any provision of this Indenture by
any court of competent jurisdiction upon the application by the Issuer, the
Company or the Owners of not less than twenty-five percent (25%) in aggregate
principal amount of the Bonds then Outstanding. In addition, prior to the
occurrence of an Event of Default, or an event which, with the passage of time,
the giving of notice, or both, would constitute an Event of Default, the Trustee
may be removed at any time without cause by an instrument in writing delivered
to the Trustee and to the Issuer and signed by the Company. The removal of the
Trustee hereunder shall not take effect until a successor Trustee or temporary
Trustee has been appointed pursuant to Section 8.08 hereof.

            Section 8.08 Appointment of Successor Trustee by the Bondholders;
Temporary Trustee.

            (a) In case the Trustee hereunder shall resign, be removed, be
      dissolved, be in the course of dissolution or liquidation or otherwise
      become incapable of acting hereunder, or in case it shall be taken under
      the control of any public officer or officers or of a receiver appointed
      by a court, a successor Trustee may be appointed by (i) prior to the
      occurrence of an Event of Default or an event which, with the passage of
      time, the giving of notice, or both, would constitute an Event of Default,
      the Company by an instrument signed by the Company and delivered to such
      successor Trustee, the predecessor Trustee and the Issuer, and,
      thereafter, (ii) the Owners of not less than fifty percent (50%) in
      aggregate principal amount of the Bonds then Outstanding by an instrument
      signed by such Bondholders and delivered to such successor Trustee, the
      predecessor Trustee, the Issuer and the Company.

                                       50
<PAGE>
            (b) In case of the occurrence of any event affecting the Trustee
      hereunder described in subsection (a) of this Section 8.08, the Issuer, by
      an instrument signed by an Authorized Representative of the Issuer, shall
      promptly appoint a temporary Trustee to fill such vacancy until a
      successor Trustee shall be appointed by the Company or the Bondholders, as
      the case may be, in the manner provided in subsection (a) of this Section
      8.08. Such instrument appointing such temporary Trustee by the Issuer
      shall be delivered to the temporary Trustee so appointed, to the
      predecessor Trustee and to the Company. Any such temporary Trustee
      appointed by the Issuer shall immediately and without further act be
      superseded by any successor Trustee appointed by the Company or the
      Bondholders, as the case may be.

            (c) Any Trustee appointed pursuant to the provisions of this Section
      8.08 shall be a trust company, bank or national banking association which
      is authorized to exercise the corporate trust powers intended to be
      conferred upon it by this Indenture and which has a combined capital and
      surplus of at least $50,000,000.

            Section 8.09 Concerning Successor Trustees.

            (a) Every successor Trustee appointed hereunder shall execute,
      acknowledge and deliver to its predecessor Trustee and to the Issuer an
      instrument accepting such appointment hereunder. Thereupon, such successor
      Trustee, without any further act, deed or conveyance, shall become fully
      vested with all the Properties, rights, powers, trusts, duties and
      obligations of its predecessor Trustee.

            (b) Every predecessor Trustee shall, upon the written request of the
      Issuer or the successor Trustee, execute and deliver an instrument
      transferring to such successor Trustee all the Properties, rights, powers
      and trusts of such predecessor Trustee hereunder and under the Agreement.
      Every predecessor Trustee shall deliver to its successor Trustee all
      securities and moneys held by it as Trustee hereunder. If any instrument
      from the Issuer shall be requested by any successor Trustee to more fully
      vest the successor trustee with the Properties, rights, powers and duties
      vested hereby or intended to be vested hereunder, any and all such
      instruments shall be executed, acknowledged and delivered by the Issuer.

            (c) The resignation of any Trustee and the instrument or instruments
      removing any Trustee and appointing a successor Trustee hereunder,
      together with all other instruments provided for in this Article VIII,
      shall be filed and/or recorded by the successor Trustee in each recording
      office where this Indenture shall have been filed and/or recorded, if any.

            Section 8.10 Successor Trustee as Custodian of Funds and Paying
Agent. In the event of a change of Trustees, the predecessor Trustee shall cease
to be (i) custodian of the Funds created pursuant to Section 4.01 hereof and of
all other moneys, Properties, rights and assets constituting the Trust Estate,
(ii) Bond Registrar and (iii) Paying Agent, and the successor Trustee shall
become such custodian, Bond Registrar and Paying Agent. Every predecessor
Trustee shall deliver to its successor Trustee all books of account, the
registration books, the list

                                       51
<PAGE>
of Bondholders and all other records, documents and instruments relating to its
duties as such custodian, Bond Registrar and Paying Agent.

            Section 8.11 Limitation on Trustee's Responsibilities Respecting
Arbitrage. Notwithstanding any provision of this Indenture to the contrary the
Trustee shall not be liable or responsible for any calculation or determination
which may be required in connection with or for the purpose of complying with
Section 148 of the Code of 1986 including, without limitation, the calculation
of amounts required to be paid to the United States under the provisions of such
Section 148 of the Code of 1986, the maximum amount which may be invested in
Nonpurpose Investments (as defined in Section 4.7 hereof) and the fair market
value of any investments made hereunder; and the sole obligation of the Trustee
with respect to investments of funds hereunder shall be to invest the moneys
received by the Trustee as provided herein pursuant to the written instructions
of the Company.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

            Section 9.01 Supplemental Indentures Not Requiring Consent of
Bondholders.

            (a) Without the consent of or notice to any of the Bondholders, the
      Issuer and the Trustee may, with the consent of the Company, enter into
      one or more Supplemental Indentures, for any one or more of the following
      purposes:

                  (i) To cure any ambiguity, inconsistency or omission in this
            Indenture or to cure, correct or supplement any defective provision
            of this Indenture in such manner as shall not impair the security
            hereof or adversely affect the Bondholders;

                  (ii) To grant to or confer upon the Trustee for the benefit of
            the Bondholders any additional rights, remedies, powers or authority
            that may lawfully be granted to or conferred upon the Bondholders or
            the Trustee;

                  (iii) To add to the covenants and agreements of the Issuer in
            this Indenture other covenants and agreements to be observed by the
            Issuer;

                  (iv) To more precisely identify the Trust Estate;

                  (v) To subject to the Lien of this Indenture additional
            Property;

                  (vi) To evidence the appointment of a separate Trustee or a
            Co-Trustee or the succession of a new Trustee hereunder; or

                  (vii) To effect any other change herein which, in the judgment
            of the Trustee, is not to the prejudice of the Trustee or the Owners
            of Bonds.

                                       52
<PAGE>
            (b) The Trustee may rely upon an opinion of Independent Counsel as
      conclusive evidence that any such Supplemental Indenture complies with the
      foregoing conditions and provisions.

            Section 9.02 Supplemental Indentures Requiring Consent of
Bondholders.

            (a) Exclusive of Supplemental Indentures permitted by Section 9.01
      hereof and subject to the terms and provisions of this Section 9.02, the
      Holders of not less than a majority in aggregate principal amount of the
      Bonds then Outstanding shall have the right, from time to time, to consent
      to and approve the execution by the Issuer and the Trustee of such
      Supplemental Indentures as shall be deemed necessary and desirable by the
      Issuer for the purpose of modifying, altering, amending, adding to or
      rescinding any of the terms or provisions contained in this Indenture, in
      any Supplemental Indenture or in the Bonds; provided, however, that
      nothing contained in this Section 9.02 shall permit, without, in each
      case, the consents of all of the Holders of the Bonds then Outstanding:

                  (i) A change in the terms of redemption or maturity of the
            principal of, premium, if any, or the Interest on any Outstanding
            Bond or a reduction in the principal amount or purchase price of or
            redemption premium on any Outstanding Bond or the rate of interest
            thereon;

                  (ii) The creation of a Lien upon the Trust Estate ranking
            prior to or on a parity with the Lien created by this Indenture, or
            any part thereof;

                  (iii) A preference or priority of any Bond or Bonds over any
            other Bond or Bonds;

                  (iv) A reduction in the aggregate principal amount of the
            Bonds required (a) under Article IX for consent to such Supplemental
            Indenture or (b) under Article X for any modification or waiver of
            the provisions of the Agreement;

                  (v) The deprivation of the Holder of any Outstanding Bond of
            the Lien of the Indenture created on the Trust Estate; or

                  (vi) The release of the Lien on any of the Trust Estate.

            (b) If at any time the Issuer shall request the Trustee to enter
      into a Supplemental Indenture for any of the purposes enumerated in
      Section 9.02(a) hereof, the Trustee, upon being satisfactorily indemnified
      with respect to expenses, shall cause notice of the proposed execution of
      a Supplemental Indenture to be mailed, by first-class mail, to the Company
      and all registered owners of Bonds then Outstanding at their addresses
      shown on the registration books kept by the Trustee. Such notice shall
      briefly summarize the contents of the proposed Supplemental Indenture and
      shall state that copies thereof are on file at the office of the Trustee
      for inspection by all Bondholders. The Trustee shall not, however, be
      subject to any liability to any Bondholder by reason of its failure to
      mail the notice required by this Section 9.02(b).

                                       53
<PAGE>
            (c) If, within such period after the mailing of the notice required
      by Section 9.02(b) hereof as the Issuer shall prescribe with the approval
      of the Trustee, the Issuer shall deliver to the Trustee and the Company an
      instrument or instruments executed by the Holders of a majority in the
      aggregate principal amount of the Bonds Outstanding, referring to the
      proposed Supplemental Indenture as described in such notice and consenting
      to and approving the execution thereof, the Trustee shall execute such
      Supplemental Indenture.

            (d) If the Holders of not less than a majority in aggregate
      principal amount of the Bonds Outstanding at the time of the execution of
      any such Supplemental Indenture shall have consented to and approved in
      writing the execution thereof as herein provided, no Holder of any Bond
      shall have any right to object to any of the terms and provisions
      contained therein, to question in any manner the propriety of the
      execution thereof or to enjoin or restrain the Trustee or the Issuer from
      executing the same or from taking any action pursuant to the provisions
      thereof.

            (e) The Trustee may rely upon an opinion of Independent Counsel as
      conclusive evidence that (i) any Supplemental Indenture entered into by
      the Issuer and the Trustee and (ii) the evidence of requisite Bondholder
      consent thereto, comply with the provisions of this Section 9.02.

            Section 9.03 Bond Counsel Opinion; Consent of Company to
Supplemental Indentures. Notwithstanding anything contained in this Indenture to
the contrary, no Supplemental Indenture shall become effective unless and until
(a) the Company shall have consented in writing to the execution and delivery of
such Supplemental Indenture and (b) the Trustee shall have received an opinion
of Bond Counsel, satisfactory to the Trustee, to the effect that the execution,
delivery and performance of the Supplemental Indenture will not adversely affect
the exclusion from gross income of the Qualified Stated Interest or Original
Issue Discount on the Bonds for Federal income tax purposes or the exemption of
the Bonds and the income therefrom from taxation by the State except
inheritance, estate and transfer taxes.

            Section 9.04 Effect of Supplemental Indentures. Any Supplemental
Indenture executed in accordance with the provisions of this Article IX shall
thereafter form a part of this Indenture. All the terms and conditions contained
in any such Supplemental Indenture shall be part of the terms and conditions of
this Indenture for any and all purposes.

            Section 9.05 Modifications by Unanimous Action. Notwithstanding
anything contained in this Article IX, the rights and obligations of the Issuer
and of the Holders of the Bonds and the terms and provisions of the Indenture or
any Supplemental Indenture may be modified or amended in any respect upon the
adoption of a Supplemental Indenture by the Issuer and the Trustee with the
prior written consent of the Company and the Holders of all of the Outstanding
Bonds, the consent of such Bondholders to be given as provided in Section 11.01
of this Indenture.

                                       54
<PAGE>
                                    ARTICLE X

                             AMENDMENTS TO AGREEMENT

            Section 10.01 Amendments to Agreement Not Requiring Consent of
Bondholders. Without the consent of or notice to any of the Bondholders, (a) the
Issuer may enter into, and the Trustee may consent to, any amendment, change or
modification of the Agreement or the Security Documents or (b) the Trustee may
enter into any amendment, change or modification of the Collateral Agency
Agreement or the Intercreditor Agreement, in either case as may be required (i)
by the provisions thereof or of this Indenture, (ii) for the purpose of curing
any ambiguity, defect or omission therein, (iii) so as to more precisely
identify the Project or the Collateral or to substitute or add additional
improvements or equipment to the Project or Collateral or additional rights or
interests in Property acquired in accordance with the provisions of the
Agreement, the Security Documents, the Collateral Agency Agreement or the
Intercreditor Agreement, (iv) to enter into a Supplemental Indenture as provided
herein or (v) in connection with any other change therein which, in the sole
judgment of the Trustee, does not adversely affect the interests of the Trustee
or the Holders of the Bonds. The Trustee may rely upon an opinion of Independent
Counsel as conclusive evidence that any such amendment, change or modification
complies with the provisions of this Section 10.01.

            Section 10.02 Amendments to Agreement Requiring Consent of
Bondholders. Except for amendments, changes, or modifications as provided in
Section 10.01 hereof, neither the Issuer nor the Trustee shall consent to any
amendment, change or modification of the Agreement, the Security Documents, the
Collateral Agency Agreement or the Intercreditor Agreement without the mailing
of notice to and the approval or consent of the Holders of not less than a
majority in aggregate principal amount of the Bonds at the time Outstanding,
such written approval or consent to be procured and given in the manner set
forth in Section 9.02 hereof with respect to supplemental indentures; provided,
however, that nothing contained in this Section 10.02 shall permit any
amendment, change or modification of the Agreement that would permit the
termination or cancellation of the Agreement or any Security Document (except as
otherwise set forth therein) or a change in the provisions of Sections 4.2(a),
4.2(d), 4.2(e) or 4.5 of the Agreement without the consent of the Owners of all
of the Outstanding Bonds. The Trustee may rely upon an opinion of Independent
Counsel as conclusive evidence that any such amendment, change or modification
and the evidence of requisite Bondholder consent comply with the requirements of
this Section 10.02 and may further require that an opinion of Bond Counsel be
furnished to the effect that such amendment, change or modification will not
adversely affect the exclusion of Qualified Stated Interest or Original Issue
Discount on the Bonds from gross income for Federal income tax purposes. Upon
receipt of evidence of requisite Bondholder consent as provided hereinabove, the
Trustee shall consent to such amendment, change or modification of the
Agreement, the Security Documents, the Collateral Agency Agreement or the
Intercreditor Agreement and enter into such instruments as the Company may
reasonably request in order to evidence such consent.

                                       55
<PAGE>
                                   ARTICLE XI

                                REMARKETING AGENT

            Section 11.01 Qualifications of Remarketing Agent. Any Remarketing
Agent appointed pursuant to the provisions of Section 3.04 of this Indenture
shall be, if there be such an institution willing, qualified and able to accept
the duties of the Remarketing Agent upon customary terms, a member of the
National Association of Securities Dealers, Inc., a bank or trust company or any
entity rated Baa3/Prime-3 or better, within or without the State, in good
standing and having reported capital and surplus of not less than $10,000,000
and rated Baa3/Prime-3 or better by Moody's (or a substantially equivalent
rating by S&P). Any such Remarketing Agent shall have an office in the State and
shall be reasonably acceptable to the Trustee. Written notice of such
appointment shall be given by the Company to the Trustee.

            Section 11.02 Successor Remarketing Agent by Merger, Consolidation,
Etc.. Any corporation or association into which the Remarketing Agent may be
converted or merged, or with which it may be consolidated, or to which it may
sell or transfer its trust business and assets as a whole or substantially as a
whole, or any corporation or association resulting from any such conversion,
sale, merger, consolidation or transfer to which it is a party, shall be and
become the successor Remarketing Agent hereunder, without the execution or
filing of any instrument or any further act, deed or conveyance on the part of
any of the parties hereto, anything herein to the contrary notwithstanding.

            Section 11.03 Resignation of Remarketing Agent. The Remarketing
Agent may at any time resign by giving thirty (30) days' notice to the Issuer,
the Trustee and the Company. Such resignation shall not take effect until the
appointment of a successor Remarketing Agent.

            Section 11.04 Removal of Remarketing Agent. The Remarketing Agent
may be removed at any time by an instrument in writing delivered to the Trustee
by the Company. In no event, however, shall any removal of the Remarketing Agent
take effect until a successor Remarketing Agent shall have been appointed.

            Section 11.05 Appointment of Successor Remarketing Agent. In case
the Remarketing Agent shall resign or be removed, or be dissolved, or shall be
in the course of dissolution or liquidation, or otherwise become incapable of
acting as Remarketing Agent, or in case it shall be taken under the control of
any public officer or officers, or of a receiver appointed by a court, a
successor may be appointed by the Company in accordance with the provisions of
this Indenture. Every successor Remarketing Agent shall meet the qualifications
specified in Section 11.01 hereof. Any successor Remarketing Agent shall execute
and deliver an instrument accepting such appointment and thereupon such
successor, without further act, deed or conveyance, shall become fully vested
with all the rights, powers, duties and obligations of its predecessor, with
like effect as if originally named as Remarketing Agent, but such predecessor
shall nevertheless, on the written request of the Company, the Trustee or the
Issuer, or of the successor, execute and deliver such instruments and do such
other things as may reasonably be required to more fully and certainly vest and
confirm in such successor all rights, powers, duties and obligations of such
predecessor. If no successor Remarketing Agent has accepted appointment in the
manner provided above within 90 days after the Remarketing Agent has

                                       56
<PAGE>
given notice of its resignation as provided above, the Remarketing Agent may
petition any court of competent jurisdiction for the appointment of a temporary
successor Remarketing Agent; provided that any Remarketing Agent so appointed
shall immediately and without further act be superseded by a Remarketing Agent
appointed by the Company as provided above.

                                   ARTICLE XII

                                  MISCELLANEOUS

            Section 12.01. Consent of Bondholders. (a) Any consent, request,
direction, approval, objection or other instrument required or permitted by this
Indenture to be signed and executed by the Bondholders may be in any number of
writings of similar tenor and may be signed or executed by such Bondholders in
person or by agent appointed in writing. Proof of the execution of any such
consent, request, direction, approval, objection or other instrument, or of the
writing appointing any such agent and of the ownership of Bonds, if made in the
following manner, shall be sufficient for any of the purposes of this Indenture
and may be conclusively relied upon by the Trustee with regard to any action
taken thereunder:

                  (i) The fact and date of the execution by any Bondholder or
            his attorney of such instrument may be proved by acknowledgement
            before a notary public or other officer empowered to take
            acknowledgments or by an affidavit of a witness to such execution or
            in any other manner which the Trustee deems sufficient and in
            accordance with such reasonable rules as the Trustee may determine.
            The authority of the person, or persons executing any such
            instrument on behalf of a corporate Bondholder may be established
            without further proof if such instrument is signed by a person
            purporting to be the President or a Vice President of such
            corporation, affixed with a corporate seal and attested to by a
            person purporting to be its Secretary or an Assistant Secretary.

                  (ii) The ownership of Bonds, the amount, numbers and other
            identification and the date of holding of the same shall be proved
            by the registration books kept by the Trustee as Bond Registrar.

            (b) Any request, consent or vote of the Owner of any Bond shall bind
all future owners of such Bond with respect to anything done, suffered to be
done or omitted to be done by the Issuer or the Trustee in accordance therewith,
unless and until such request, consent or vote is revoked by the filing with the
Trustee of a writing, signed and executed by the Owner of the Bond, in form and
substance and within such time as shall be satisfactory to the Trustee.

            (c) Any of the provisions of Sections 9.02 and 12.01 of this
Indenture notwithstanding, where any Bonds are registered in the name of a
Securities Depository, any request, approval, consent or vote of the Owner of
any such Bond so registered may be given or made by an electronic communication
from the Securities Depository to the Trustee and any such request, approval,
consent or vote so given or made electronically by the Securities Depository
shall be valid and effective for all purposes of this Indenture.

            Section 12.02 Limitation of Rights.

            With the exception of rights herein expressly conferred, nothing
expressed or mentioned in or to be implied from this Indenture or the Bonds is
intended or shall be construed

                                       57
<PAGE>
to give to any Person, other than the parties hereto and the Holders of the
Bonds, any right, remedy or claim under or with respect to this Indenture or any
covenants, conditions and provisions herein contained. This Indenture and all of
the covenants, conditions and provisions hereof are intended to be for the sole
and exclusive benefit of the parties hereto and the Holders of the Bonds as
herein provided.

            Section 12.03 Severability. (a) If any provision of this Indenture
      shall, for any reason, be held to be or shall in fact be inoperative or
      unenforceable in any particular case, such circumstance shall not render
      the provision in question inoperative or unenforceable in any other case
      or circumstance or render any other provision herein contained inoperative
      or unenforceable.

            (b) The invalidity of any one or more phrases, sentences, clauses,
      paragraphs or Sections in this Indenture shall not affect the remaining
      portions of this Indenture.

            Section 12.04 Notices.

            (a) Except as otherwise expressly provided herein, all notices,
      certificates or other communications hereunder shall be in writing and
      either shall be mailed by certified mail, postage prepaid, return receipt
      requested, or sent by overnight air courier service, or personally
      delivered to a representative of the receiving party, or sent by facsimile
      (provided an identical notice is also sent simultaneously by mail,
      overnight courier, or personal delivery as otherwise provided in this
      Section 12.03). All such communications shall be mailed, sent or
      delivered, addressed to the party for whom it is intended at its address
      set forth below.

            If to the Issuer:    City of Weirton,
                                 200 Municipal Plaza,
                                 Weirton, West Virginia 26062,
                                 Attention:  City Manager
                                 Facsimile:

            If to the Trustee:   J.P. Morgan Trust Company, National Association
                                 One Oxford Center,
                                 301 Grant Street, Suite 1100
                                 Pittsburgh, Pennsylvania 15219
                                 Attention:  Institutional Trust Service
                                 Facsimile:

            With a copy to:      J.P. Morgan Trust Company, National Association
                                 Institutional Trust Services
                                 2001 Bryan Street
                                 9th Floor
                                 Dallas, Texas 75201
                                 Facsimile:

            If to the Company:   Weirton Steel Corporation

                                       58
<PAGE>
                                 400 Three Springs Drive
                                 Weirton, West Virginia 26062
                                 Attention:  President
                                 Facsimile:

            (b) Any communication so addressed and mailed shall be deemed to be
      given on the earliest of (i) when actually delivered, (ii) on the first
      Business Day after deposit with an overnight air courier service, or (iii)
      on the third Business Day after deposit in the United States mail, postage
      prepaid, in each case to the address of the intended addressee, and any
      communication so delivered in person shall be deemed to be given when
      receipted for by, or actually received by, the Issuer, the Company or the
      Trustee, as the case may be. If given by facsimile, a notice shall be
      deemed given and received when the facsimile is transmitted to the party's
      facsimile number specified above, and confirmation of complete receipt is
      received by the transmitting party during normal business hours or on the
      next Business Day if not confirmed during normal business hours, and an
      identical notice is also sent simultaneously by mail, overnight courier,
      or personal delivery as otherwise provided in this Section 12.03. Any
      party may designate a change of address by written notice to the other
      parties by giving at least 10 days prior written notice of such change of
      address.

            Section 12.05 Counterparts.

            This Indenture may be executed in several counterparts, each of
which shall be an original and all of which shall constitute but one and the
same instrument.

            Section 12.06 Applicable Law. This Indenture shall be governed
exclusively by the applicable laws of the State.

            Section 12.07 No Recourse. All covenants, stipulations, promises,
agreements and obligations of the Issuer contained in this Indenture, the
Agreement, the Deeds of Trust, the Security Agreement and all other Bond
Documents shall be deemed to be the covenants, stipulations, promises,
agreements and obligations of the Issuer and not of any member, officer,
employee or agent of the Issuer in his individual capacity, and no recourse
under or upon any obligation, covenant or agreement contained in the Bond
Documents or otherwise based upon or in respect to the Bond Documents, or any
documents supplemental thereto, or for any of the Bonds or for any claim based
thereon or otherwise in respect thereof, shall be had against any past, present
or future members, officers, employees or agents, as such, of the Issuer or any
successor public corporation or political subdivision thereof or any person
executing the Bond Documents, either directly or through the Issuer or any
successor public corporation or political subdivision thereof, it being
expressly understood that the Bond Documents to which the Issuer is a party are
solely corporate obligations, and that no such personal liability whatever shall
attach to, or shall be incurred by, any such member, officer, employee or agent
of the Issuer or any successor public corporation or political subdivision
thereof or any person executing the Bond Documents because of the creation of
the indebtedness thereby authorized, or under or by reason of the obligations,
covenants or agreements contained in the Bond Documents or implied therefrom;
and that any and all such personal liability of, and any and all such rights and
claims against, every such member, officer, employee or agent because of the
indebtedness thereby

                                       59
<PAGE>
authorized, or under or by reason of the obligations, covenants or agreements
contained in the Bond Documents or implied therefrom are, to the extent
permitted by law, expressly waived and released as a condition of, and as
consideration for, the execution of the Bond Documents.

            Section 12.08 Survival. This Indenture shall remain in full force
and effect until terminated pursuant to Article VI hereof.

            Section 12.09 Table of Contents and Section Headings Not
Controlling. The Table of Contents and the headings of the several Sections of
this Indenture have been prepared for convenience of reference only and shall
not control, affect the meaning of or be taken as an interpretation of any
provision of this Indenture.

            Section 12.10 Binding Effect. This Indenture shall be binding upon
the Issuer and the Trustee and their respective successors and assigns.

            Section 12.11 Intercreditor Agreement and Collateral Agency
Agreement. The Issuer hereby authorizes and directs the Trustee to enter into
the Intercreditor Agreement and the Collateral Agency Agreement in the forms
attached hereto as Composite Exhibit ___ and hereby further authorizes the
Trustee to enter into any modification, amendment, or supplement thereto or any
restatement thereof and/or to enter into any replacement or additional
intercreditor agreement as contemplated thereunder (collectively, the
"Intercreditor Modification Documents") provided that (a) the Trustee has
determined, in its sole judgment, that any such Intercreditor Modification
Document will not adversely affect the interests of the Trustee or the
Bondholders, in which event (i) the Issuer and the Trustee shall have received
an opinion of Bond Counsel to the effect that any such Intercreditor
Modification Document will not adversely affect the exclusion of Qualified
Stated Interest or Original Issue Discount on the Bonds from gross income of the
recipients thereof for federal income tax purposes and (ii) the Trustee may
request an opinion of Independent Counsel that any such Intercreditor
Modification Document complies with provisions of this Section 12.11, upon which
the Trustee may conclusively rely, or (b) such Intercreditor Modification
Documents shall have complied with Article X of this Indenture.

            IN WITNESS WHEREOF, the Issuer has caused these presents to be
signed in its name and behalf by its Mayor and, to evidence its acceptance of
the Trust hereby created, the Trustee has caused these presents to be signed in
its name and behalf by its duly authorized representative, all as of the date
first above written.

                                    CITY OF WEIRTON, WEST VIRGINIA

                                    By
                                        ----------------------------
                                                   Mayor

(SEAL)

ATTEST:

-----------------------------

                                       60
<PAGE>
Clerk

                                    J.P. MORGAN TRUST COMPANY, NATIONAL
                                    ASSOCIATION
                                    As Trustee

                                    By
                                        ----------------------------
                                             Authorized Officer

(SEAL)

ATTEST:

-----------------------------

-----------------------------

                                       61
<PAGE>
STATE OF WEST VIRGINIA  )
                        :     ss.:
COUNTY OF HANCOCK       )

            The undersigned, a Notary Public, does hereby certify that
________________ and ________________ whose names as Mayor and City Clerk,
respectively, of the City of Weirton, West Virginia, are signed to the foregoing
Indenture of Trust, and who are each known to me and known to such officials,
acknowledged before me on this day under oath that, being informed of the
contents of the foregoing, they, in their capacities as such officials of the
City of Weirton, West Virginia, and with full authority, executed and delivered
the same voluntarily for and as the act of the City of Weirton, West Virginia on
the day the same bears date.

            Given under my hand and seal of office, this ___ day of
_______________ 2002.

                                        ________________________________

COMMONWEALTH OF PENNSYLVANIA  )
                              :     ss.:
COUNTY OF ALLEGHENY           )

            On this ___ day of _______________ 2002, before me personally came
________________ , to me personally known who, being by me duly sworn, did
depose and say that he resides at ______________________________________; that
he is Vice President of J.P. Morgan Trust Company, National Association, the
banking association described in and which executed the within Indenture of
Trust; and that he signed his name thereto by authority of such banking
association.

                                        ________________________________
                                                 Notary Public

                                       62
<PAGE>
                                                                       EXHIBIT A

                             (Form of Face of Bond)

                  FOR PURPOSES OF SECTION 1273 OF THE INTERNAL REVENUE CODE OF
                  1986, AS AMENDED (THE "CODE"), THIS BOND HAS ORIGINAL ISSUE
                  DISCOUNT. FOR PURPOSES OF SECTION 1273 OF THE CODE, THE ISSUE
                  PRICE IS $    AND THE AMOUNT OF ORIGINAL ISSUE DISCOUNT IS $
                  , IN EACH CASE PER $1,000 PRINCIPAL AMOUNT OF THIS BOND FOR
                  PURPOSES OF SECTION 1273 OF THE CODE, THE YIELD TO MATURITY
                  COMPOUNDED SEMIANNUALLY IS   %.

REGISTERED                                                            REGISTERED

No.                                                                   $

                         CITY OF WEIRTON, WEST VIRGINIA
                SECURED POLLUTION CONTROL REVENUE REFUNDING BOND
                 (Weirton Steel Corporation Project) Series 2002

BOND RATE              MATURITY DATE             DATED DATE           CUSIP
                       April 1, 2012

REGISTERED OWNER:

PRINCIPAL AMOUNT:                                                     DOLLARS

            CITY OF WEIRTON, WEST VIRGINIA (the "Issuer"), a public corporation
and an incorporated municipality duly organized and existing under the
Constitution and laws of the State of West Virginia (the "State"), acknowledges
itself indebted and for value received promises to pay, solely from the sources
and as hereinafter provided, to the Registered Owner named above, or registered
assigns, the Principal Amount set forth above, on the Maturity Date set forth
above, unless redeemed prior thereto as hereinafter provided, and in like manner
to bear interest from and including ___________, 2002 on said Principal Amount
at the Bond Rate set forth on the reverse hereof, payable semiannually on the
first days of April and October in each year commencing October 1, 2002 (each an
"Interest Payment Date"), until the Issuer's obligation with respect to such
Principal Amount has been discharged.

            Interest on this bond shall accrue from __________ __, 2002 and
shall be calculated as set forth on the reverse hereof. The principal of and
premium, if any, on this bond is payable in lawful money of the United States of
America upon presentation and surrender of this bond at the principal corporate
trust office of J.P. Morgan Trust Company, National Association, as trustee
(together with its successors in trust, the "Trustee"), or at the duly
<PAGE>
designated office of any successor Trustee under an indenture of trust, dated as
of _________ ___, 2002, between the Issuer and the Trustee (which indenture, as
from time to time amended and supplemented, is hereinafter referred to as the
"Indenture"). Payment of interest on this bond shall be made on each Interest
Payment Date to the person in whose name this bond is registered at the close of
business on the fifteenth day of the month next preceding any Interest Payment
Date (the "Record Date"), as further provided in the Indenture, and shall be
paid by check mailed or wire transfer by the Trustee to such registered owner at
his address as it appears on the registration books of the Issuer maintained by
the Trustee as bond registrar or at such other address as is furnished to the
Trustee in writing by such registered owner.

            Reference is hereby made to the further provisions of this bond set
forth on the reverse side hereof, which provisions shall for all purposes have
the same effect as if set forth on the face hereof.

            This bond is issued pursuant to and in full compliance with the
Constitution and laws of the State of West Virginia, and pursuant to proceedings
of the Issuer authorizing the execution and delivery of, among other things,
this bond and the Indenture.

            It is hereby certified, recited and declared that all acts,
conditions and things required to exist, happen and be performed precedent to
and in the authorization, execution and delivery of the Indenture and the
issuance of this bond do exist, have happened and have been performed in due
time, form and manner as required by law, and that this bond and the issue of
which it forms a part, together with all other obligations of the Issuer, do not
exceed or violate any constitutional or statutory limitations.

            THIS BOND AND THE INTEREST HEREON ARE A LIMITED OBLIGATION OF THE
ISSUER PAYABLE SOLELY FROM THE MONEYS PLEDGED THEREFOR AND SHALL NOT BE A DEBT
OF THE STATE OF WEST VIRGINIA OR ANY POLITICAL SUBDIVISION THEREOF, INCLUDING
THE CITY OF WEIRTON, WEST VIRGINIA, AND NEITHER THE STATE OF WEST VIRGINIA NOR
ANY POLITICAL SUBDIVISION THEREOF, INCLUDING THE CITY OF WEIRTON, WEST VIRGINIA,
SHALL BE LIABLE HEREON. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE
ISSUER, THE STATE OR ANY OTHER POLITICAL SUBDIVISION OF THE STATE IS PLEDGED TO
THE PAYMENT OF THE PRINCIPAL OF THIS BOND OR THE INTEREST HEREON. THIS BOND AND
THE INTEREST HEREON SHALL NOT BE A GENERAL OBLIGATION OF THE ISSUER OR A CHARGE
UPON THE TAX REVENUES OF THE ISSUER OR UPON ANY OTHER REVENUES OR PROPERTY OF
THE ISSUER NOT SPECIFICALLY PLEDGED THERETO. NO MEMBER OR OFFICER OF THE ISSUER
OR ANY PERSON EXECUTING THIS BOND ON BEHALF OF THE ISSUER SHALL BE PERSONALLY
LIABLE HEREON.

            This bond shall not be valid, become obligatory for any purpose or
be entitled to any security or benefit under the Indenture until the Certificate
of Authentication hereon shall have been signed by the Trustee.

            IN WITNESS WHEREOF, CITY OF WEIRTON, WEST VIRGINIA, has caused this
bond to be executed in its name by the manual or facsimile signature of its
Mayor, has

                                       2
<PAGE>
caused its corporate seal or a facsimile thereof to be affixed, impressed,
imprinted or otherwise reproduced hereon and has caused such signature and such
seal to be attested to by the manual or facsimile signature of its Clerk all on
and as of the above Dated Date.

                                    CITY OF WEIRTON, WEST VIRGINIA

                                    By
                                        -----------------------------
                                                   Mayor

(SEAL)

ATTEST:

-----------------------------
            Clerk

                          (To Be Endorsed on All Bonds)

                (FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION)

            This bond is one of the Bonds of the series therein specified
described in the within-mentioned Indenture.

                                    J.P. Morgan Trust Company, National
                                    Association, as Trustee

                                    By
                                        -----------------------------
                                              Authorized Officer

                                       3
<PAGE>
                                [Reverse of Bond]

                         CITY OF WEIRTON, WEST VIRGINIA
                SECURED POLLUTION CONTROL REVENUE REFUNDING BOND
                 (Weirton Steel Corporation Project) Series 2001

            This bond is one of a duly authorized series of bonds limited in
aggregate principal amount to THIRTY-THREE MILLION EIGHT HUNDRED THOUSAND
DOLLARS ($33,800,000) (the "Series 2002 Bonds"), issued and authorized to be
issued for the purpose of refunding certain of the Issuer's outstanding
pollution control revenue bonds (the "Series 1989 Bonds") issued to finance (or
refinance) the acquisition, construction and installation of certain pollution
control equipment (the "Project") presently owned by, or leased to, Weirton
Steel Corporation, a Delaware corporation (the "Company") and located in the
Company's steel manufacturing plant in the City of Weirton, West Virginia, so as
to promote the job opportunities, health, general prosperity and welfare of the
inhabitants of the State of West Virginia. All capitalized terms not defined
herein shall have the meaning set forth in the Indenture. Descriptive headings
are merely for convenience and shall have no effect on the meaning or
interpretation hereof.

            The Series 2002 Bonds are all issued under and are equally and
ratably secured and entitled to the security given by the Indenture. The
Indenture, among other things, assigns to the Trustee for the benefit of the
Bondholders certain of the rights and remedies of the Issuer under an agreement
(the "Agreement"), dated as of _________ __, 2002, between the Issuer and the
Company, including the right to collect and receive certain amounts payable
thereunder, as security for the payment of the principal of, and premium, if
any, and interest on the Series 2002 Bonds, and assigns to the Trustee certain
right, title, and interest in the Security Documents.

            The date or dates of such additional bonds, the rate or rates of
interest on such additional bonds, the time or times of payment of the interest
thereon and the principal thereof, and (except as otherwise provided in the
Indenture) the redemption provisions, if any, with respect thereto all shall be
provided in the supplemental indenture authorizing such additional bonds, rather
than as provided in the Indenture, and may differ from the provisions with
respect to the Series 2002 Bonds. Said additional bonds and the Series 2002
Bonds are collectively referred to herein as the "Bonds."

            Reference is hereby made to the Agreement, the Security Documents,
the Collateral Agency Agreement, the Intercreditor Agreement and the Indenture
and to all amendments and supplements thereto (a copy of each of which is and
will be on file at the Principal Corporate Trust Office of the Trustee) for the
provisions, among others, with respect to the nature and extent of the security
for the Bonds, the rights, duties and obligations of the Issuer, the Company,
the Trustee and the Owners of the Bonds and the terms upon which the Bonds are
issued and secured.

Interest
<PAGE>
            Interest shall accrue on the principal amount of this bond from
_________ __, 2002 until April 1, 2012 or the earlier redemption of the Bonds as
at the respective rates per annum as set forth on the table below, and the
Issuer promises to pay such interest, semi-annually in arrears on April 1 and
October 1 of each year, on said principal sum in like coin or currency at such
rates, with the first such payment commencing on October 1, 2002. The Company
shall furnish an Officer's Certificate to the Trustee specifying the applicable
interest rate on or prior to April 1 and October 1, 2003 and April 1 and October
1, 2004.

<TABLE>
<CAPTION>
Interest Period                             Interest Rate
---------------                             -------------
<S>                                         <C>
1. From _______ __, 2002 [Issue Date]       1. 0.5%
to March 31, 2003

2. From April 1, 2003 to March 31, 2005     2. The lesser of (a) the sum of 0.5%
                                            plus Contingent Interest Rate (as
                                            defined below) and (b) 9.0%.

3. From April 1, 2005 to March 31, 2012     4. 9.0% per annum.
</TABLE>

            "Contingent Interest Rate" shall be expressed as a percentage
determined by dividing (a) 50% of the Excess Cash Flow by (b) the sum of the
principal amount of all Outstanding Bonds (including this bond) and the
principal amount of all Outstanding Senior Secured Notes at the time of such
determination.

            Interest on the Bonds shall be computed on the basis of a 360-day
year of twelve 30-day months. The interest so payable on any April 1 and October
1 will, except as otherwise provided in the Indenture, be paid to the person in
whose name this bond is registered at the close of business on the March 15 or
September 15 preceding such April 1 and October 1, whether or not such day is a
Business Day (as defined in the Indenture); provided that Interest, if any, may
be paid, at the option of the Issuer, by mailing a check therefor payable to the
registered holder entitled thereto at his last address as it appears on the Bond
Register. If the date of redemption or purchase of this bond is other than an
Interest Payment Date, then the amount of any accrued and unpaid Interest due
and payable on this bond at the time of any such redemption or purchase shall be
equal to the amount determined by multiplying (i) the interest rate in effect as
of the most recent Interest Payment Date prior thereto by (ii) a fraction, the
numerator of which is the actual number of days elapsed in the period for which
Interest is payable on the date of redemption or purchase, and the denominator
of which is 360.

            Unless otherwise agreed by the Issuer and the holder of any Bond,
payments by the Issuer in respect of the Bonds (including principal, premium, if
any, and Interest) shall be paid to holders of the Bonds in immediately
available funds. If the date of maturity of Interest on or principal of the
Bonds or the date fixed for redemption of any Bond shall not be a Business Day,
then payment of Interest, or principal will be made on the next succeeding
Business Day, with the same force and effect as if made on the date of maturity
or the date fixed for redemption, and no Interest shall accrue for the period
after such date.

                                       2
<PAGE>
            The Bonds are issuable as fully registered bonds without coupons in
the denominations of $1,000 or any integral multiple of $1,000 in excess
thereof.

            This bond is fully negotiable and transferable, as provided in the
Indenture, only upon the books of the Issuer kept by the Trustee, and, subject
to the limitations provided in the Indenture, may be negotiated and transferred
by the registered owner hereof in person or by his attorney duly authorized in
writing upon the surrender of this bond together with a written instrument of
transfer reasonably satisfactory to the Trustee. Thereupon, a new bond or bonds,
in registered form, in the same aggregate unpaid principal amount and of the
same maturity, interest rate and series as this bond shall be issued to the
transferee in exchange herefor as provided in the Indenture.

            The Issuer, the Trustee and any paying agent may deem and treat the
person in whose name this bond is registered as the absolute owner hereof,
whether this bond shall be overdue or not, for the purpose of receiving payment
of the principal of, premium, if any, and (subject to the provisions of the
Indenture) Interest on this bond and for all other purposes. All such payments
so made to the registered owner hereof shall satisfy and discharge the liability
upon this bond to the extent of the sum or sums so paid, and the Issuer, the
Trustee and any paying agent shall not be affected by any notice to the
contrary.

Redemption

            The Bonds are subject to mandatory redemption prior to their
maturity upon a "Determination of Taxability" (as hereinafter defined) with
respect to any Bond. If so called for redemption, the Bonds shall be redeemed by
the Issuer in whole at any time within two hundred ten (210) days after such
Determination of Taxability, at one hundred percent (100%) of the aggregate
principal amount of the Bonds then Outstanding, plus accrued Interest to the
redemption date.

            A "Determination of Taxability" shall be deemed to have been made
upon the first to occur of the following events:

            (i) the date on which the Company notifies the Trustee that an
"Event of Taxability" (as hereinafter defined) has occurred, which notice is
supported by one or more tax schedules, returns or documents that evidence the
occurrence of such Event of Taxability; or

            (ii) a final resolution that Qualified Stated Interest or Original
Issue Discount on any Bond is includable in the gross income of the recipient
thereof for Federal income tax purposes (other than by reason of the recipient
being a "substantial use" of the Project or a "related person" to a "substantial
user," as such terms are defined in Section 103(b)(13) of the Code of 1954),
that, under applicable law, is not subject to further appeal, review or
modification through proceedings or otherwise, including (1) by the expiration
of a statute of limitations or a period for the filing of claims appealing from
adverse determinations, or recovering any refund (including by offset), (2) by a
decision, judgment, decree, or other order by a court of competent jurisdiction,
which has become final and unappealable, or (3) by closing agreement, an
accepted offer in compromise under the code, or comparable agreements under
United States federal income tax law or the laws of other jurisdictions;

                                       3
<PAGE>
provided, however, that no Determination of Taxability described in clause (i)
above shall be deemed to have occurred if the Trustee shall have received an
unqualified written opinion of Bond Counsel satisfactory to the Trustee, in form
and substance satisfactory to the Trustee, to the effect that no Event of
Taxability has occurred.

            "Event of Taxability," with respect to any Bond, means a change of
law or regulation, or the interpretation thereof, or the occurrence of any other
event or the existence of any other circumstance (including without limitation
the fact that any representation or warranty of the Company or the Issuer made
in connection with the issuance of the Bonds is or was untrue) that has the
effect of causing Qualified Stated Interest or Original Issue Discount on any
Bond to be includable in the gross income of the recipient thereof for Federal
income tax purposes (other than by reason that such Qualified Stated Interest or
Original Issue Discount (i) is includable in the gross income of an owner or
former owner of a Bond while such owner or former owner is or was a "substantial
user" of the Project or a "related person" to a "substantial user," as such
terms are defined in Section 103(b)(13) of the Code of 1954, or (ii) is deemed
an item of tax preference, including without limitation an item subject to any
alternative minimum tax). The Company shall give written notice to the Issuer
and the Trustee within thirty (30) days after becoming aware that an Event of
Taxability has occurred.

            If the Issuer or the Trustee receives written notice from any Owner
of Bonds or taxing authority stating that a taxing authority proposes to include
Qualified Stated Interest or Original Issue Discount on any Bond in the gross
income of a holder or holders of Bonds for the reasons described herein or any
other proceeding has been instituted which may lead to a final resolution as
described in clause (ii) of the definition of "Determination of Taxability" or
to an Event of Taxability (a "Tax Proceeding"), then the Trustee and/or the
Issuer shall promptly give written notice to the Company of such Tax Proceeding
and the Company shall have the right, at its own expense, to participate in and
control the Tax Proceeding to the same extent that the Issuer would otherwise
have the right to participate in and control the Tax Proceeding. The Issuer
hereby agrees to execute all documents reasonably necessary to permit the
Company to participate in and control any such Tax Proceeding and neither the
Trustee nor the Issuer shall, without the prior written consent of the Company
(which consent shall not be unreasonably withheld) agree to the entry of any
judgment or enter into any settlement with respect to the Tax Proceeding.

            The Bonds shall be redeemed prior to maturity by the Issuer in whole
at any time at 100% of the principal amount thereof, plus Interest accrued
thereon to the date set for redemption, if the Company elects to terminate the
Agreement upon the occurrence of one of the following events:

                  (i) the Project or any substantial portion of the Hot Mill
            Collateral, Tandem Mill Collateral or the Tin Mill Collateral, to
            the extent owned and operated by the Company (each, a "Facility")
            shall have been damaged or destroyed to such extent that (1) in the
            reasonable opinion of the Company, expressed in a certificate signed
            by an Authorized Representative of the Company, the Project or such
            substantial portion of a Facility cannot be reasonably restored
            within a period of 6 months from the date of such damage or
            destruction, or (2) the Company is thereby prevented or, in the
            reasonable opinion

                                       4
<PAGE>
            of the Company expressed in a certificate signed by an Authorized
            Representative of the Company, is likely to be prevented from
            carrying on its normal operation of the Project or such substantial
            portion of a Facility for a period of 6 months from the date of such
            damage or destruction; or

                  (ii) title to, or the temporary use of, all or substantially
            all of the Project or any substantial portion of a Facility shall
            have been condemned by a competent authority which Condemnation
            results or, in the reasonable opinion of the Company expressed in a
            certificate signed by an Authorized Representative of the Company,
            is likely to result in the Company being thereby prevented from
            carrying on its normal operation of the Project or such substantial
            portion of a Facility for a period of 6 months; or

                  (iii) as a result of changes in the Constitution of the United
            States of America or of the State or of legislative or executive
            action of any political subdivision thereof or of the United States
            of America or by final decree or judgment of any court, after the
            contest thereof by the Company, (x) the Agreement becomes void or
            unenforceable or, (y) in the reasonable opinion of the Company
            expressed in a certificate signed by an Authorized Representative of
            the Company, (A) the Agreement becomes impossible of performance in
            accordance with the intent and purposes of the parties as expressed
            therein or (B) unreasonable burdens or excessive liabilities are
            imposed upon the Company by reason of the operation of the Project
            or any substantial portion of a Facility; or

                  (iv) a change shall have occurred in the economic availability
            of raw materials, manufactured products, energy sources, operating
            supplies or facilities necessary for the operation of the Project or
            any substantial portion of a Facility for the purposes for which
            such Project or such substantial portion of a Facility was
            originally constructed, or such technological or other changes shall
            have occurred that, in the reasonable opinion of the Company
            expressed in a certificate signed by an Authorized Representative of
            the Company, the Project or such substantial portion of a Facility
            is rendered uneconomic, impractical or unfeasible for the purposes
            for which it was originally constructed.

            The Bonds also shall be redeemed prior to maturity by the Issuer, at
the option of the Company, in whole at any time or in part on any Interest
Payment Date on or after April 1, 2004, upon payment in each case of the
applicable redemption price (expressed as a percentage of the principal amount
of such Bonds to be so redeemed), as set forth in the schedule below, together
with Interest accrued thereon, if any, to the date set for redemption if during
the 12-month period beginning on April 1 of years indicated below:

<TABLE>
<CAPTION>
                   Year                       Redemption Price
                   ----                       ----------------
<S>                                           <C>
                   2004                             102%
                   2005                             101%
                   2006 and thereafter              100%
</TABLE>

                                       5
<PAGE>
            The Bonds shall also be redeemed prior to maturity by the Issuer in
whole or in part on the first Interest Payment Date for which adequate notice of
redemption can be given hereunder, in the amount of any prepayment of the Bond
Loan required under Section 8.2(b) of the Agreement at a redemption price equal
to 100% of the principal amount redeemed plus accrued Interest thereon to the
redemption date

            In the event of redemption of less than all the Bonds Outstanding,
selection of the Bonds will be made by lot and, for such purposes, the Trustee
shall treat each Bond in a denomination greater than $1,000 in principal amount
at maturity as if it were that number of separate Bonds derived by dividing its
denomination by $1,000.

            Whenever Bonds are to be redeemed as aforesaid or purchased pursuant
to Section 3.05 of the Indenture, the Trustee shall give written notice of the
redemption or purchase of the Bonds in the name of the Issuer stating: (i) the
Bonds or portions thereof to be redeemed or purchased; (ii) the redemption or
purchase date; (iii) the redemption or purchase price; and (iv) that if moneys
or Government Obligations sufficient for such redemption have been deposited
with the Trustee, from and after the redemption date, Interest on any Bond so
called for redemption shall cease to accrue.

            Notice required as aforesaid shall be given by the Trustee by
first-class mail, postage prepaid, at least thirty (30) days and not more than
forty-five (45) days prior to the redemption or purchase date, to the registered
owners of any Bonds to be redeemed or purchased at the addresses of such
registered owners appearing on the registration books. Any failure to give such
notice or any defect therein shall not affect the proceedings for redemption or
purchase of any Bond as to which no such failure or defect has occurred.

            On the redemption date, all Bonds or portions thereof so called for
redemption shall cease to bear Interest and shall no longer be secured by or
entitled to the benefits of the Indenture, provided that moneys or Government
Obligations for their redemption are on deposit with the Trustee at that time.

            In the event the date fixed for payment of Interest or premium, if
any, on or principal or purchase price of this bond or the date fixed for
redemption or purchase of this bond shall not be a Business Day, then the
payment of Interest or premium on or the principal or purchase price of this
bond, as the case may be, need not be made on such date but shall be made on the
next succeeding Business Day with the same force and effect as if made on such
date fixed for payment or such date fixed for redemption or purchase, as the
case may be, and no Interest attributable to any such delay shall accrue.
"Business Day" shall mean a day other than a Saturday, a Sunday or a legal
holiday on which national banks located in the State of New York or the State of
West Virginia or any city where the Trustee maintains its place of business for
performance of its obligations under the Indenture are not open for general
banking business.

Other Terms

            In the event that there shall occur a Designated Event, the Owner of
this bond may tender this bond for purchase and require the purchase of this
bond (but only in

                                       6
<PAGE>
denominations of $1,000 or any integral multiple thereof) on the Repurchase
Date, all as more fully described in the Indenture.

            Upon the occurrence of an Event of Default, the principal hereof and
Interest hereon may be declared to be forthwith due and payable in the manner,
upon the conditions and with the effect provided in the Indenture.

            The Owner of this bond shall have no right to enforce the provisions
of the Indenture, to institute any action to enforce the covenants therein, to
take any action with respect to any Event of Default thereunder or to institute,
appear in or defend any suit or other proceedings with respect thereto, except
as otherwise expressly provided in the Indenture. In addition, the right of the
Owner of this bond to institute or prosecute a suit for the enforcement of
payment hereof or to enter a judgment in any such suit is limited to the extent
that such action would result in the surrender, impairment, waiver or loss of
the Lien of the Indenture for the equal and ratable benefit of all Bondholders.

            Modifications or alterations of the Indenture or the Agreement (or
any supplements thereto) may be made only to the extent and under the
circumstances permitted by the Indenture.

            The following abbreviations, when used in the inscription on the
face of this bond, shall be construed as though they were written out in full
according to applicable laws or regulations:

TEN COM  - as tenants in common
TEN ENT  - as tenants by the entireties
JT TEN   - as joint tenants with right of survivorship and not as tenants in
           common
UNIF GIFT MIN ACT - __________ Custodian _________________
                       (Cust)                (Minor)
                    under Uniform Gifts to Minors
                    Act ________________
                             (State)

Additional abbreviations may also be used though not in the above list.

                              (FORM OF ASSIGNMENT)

            FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto

PLEASE INSERT TAXPAYER IDENTIFICATION NUMBER OF ASSIGNEE

                                       7
<PAGE>
________________________________________________________________________________

________________________________________________________________________________
            (please print or typewrite name and address of assignee)

the within bond and all rights and title thereunder, and hereby irrevocably
constitutes and appoints _______________________ attorney to transfer the within
bond on the books kept for registration thereof, with full power of substitution
in the premises.

Dated:__________________________        ________________________________________

______________________________________________
NOTICE: The signature above must correspond with the name as it appears upon the
face of the within bond in every particular, without enlargement or alteration,
and the Taxpayer Identification Number must be furnished.

Signature Guaranty: ____________________________________________________________

The signature must be guaranteed by a member of a national securities exchange
or the National Association of Securities Dealers, Inc. or by a commercial bank
or trust company located in the United States of America.

                                       8<PAGE>
                                                                 Exhibit 10.33

                            WEIRTON STEEL CORPORATION

                              AMENDED AND RESTATED
                           LOAN AND SECURITY AGREEMENT

                             Dated: __________, 2002

                                  $200,000,000

                            FLEET CAPITAL CORPORATION
                INDIVIDUALLY AND AS AGENT FOR ANY LENDER WHICH IS
                           OR BECOMES A PARTY HERETO,

                          FOOTHILL CAPITAL CORPORATION
                     INDIVIDUALLY AND AS SYNDICATION AGENT,

                       THE CIT GROUP/BUSINESS CREDIT, INC.
                   INDIVIDUALLY AND AS A DOCUMENTATION AGENT,

                            GMAC BUSINESS CREDIT, LLC
                    INDIVIDUALLY AND AS A DOCUMENTATION AGENT

                                       AND

                             FLEET SECURITIES, INC.
                                AS LEAD ARRANGER
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                           Page
<S>                                                                                                                        <C>
SECTION 1.  CREDIT FACILITY.............................................................................................   1
    1.1.       Loans....................................................................................................   1
    1.2.       Letters of Credit; LC Guaranties.........................................................................   3
    1.3.       Tandem Mill Subfacility..................................................................................   4
    1.4.       Effect of Amendment and Restatement......................................................................   4

SECTION 2.  INTEREST, FEES AND CHARGES..................................................................................   4
    2.1.       Interest.................................................................................................   4
    2.2.       Computation of Interest and Fees.........................................................................   5
    2.3.       Fee Letters..............................................................................................   5
    2.4.       Letter of Credit and LC Guaranty Fees....................................................................   5
    2.5.       Unused Line Fee..........................................................................................   6
    2.6.       Facility Reduction/Termination...........................................................................   6
    2.7.       Audit Fees...............................................................................................   6
    2.8.       Reimbursement of Expenses................................................................................   7
    2.9.       Bank Charges.............................................................................................   7
    2.10.      Collateral Protection Expenses; Appraisals...............................................................   7
    2.11.      Payment of Charges.......................................................................................   8
    2.12.      No Deductions............................................................................................   8

SECTION 3.  LOAN ADMINISTRATION.........................................................................................   8
    3.1.       Manner of Borrowing Revolving Credit Loans/LIBOR Option..................................................   8
    3.2.       Payments.................................................................................................  11
    3.3.       Optional Reductions/Prepayments..........................................................................  13
    3.4.       Application of Payments and Collections..................................................................  16
    3.5.       All Loans to Constitute One Obligation...................................................................  16
    3.6.       Loan Account.............................................................................................  16
    3.7.       Statements of Account....................................................................................  17
    3.8.       Increased Costs..........................................................................................  17
    3.9.       Basis for Determining Interest Rate Inadequate...........................................................  18
    3.10.      Sharing of Payments, Etc.................................................................................  19
    3.11.      Estoppel Certificate.....................................................................................  19

SECTION 4.  TERM AND TERMINATION........................................................................................  19
    4.1.       Term of Agreement........................................................................................  19
    4.2.       Termination..............................................................................................  19

SECTION 5.  SECURITY INTERESTS..........................................................................................  20
    5.1.       Security Interest in Collateral..........................................................................  20
    5.2.       Intentionally Omitted....................................................................................  21
</TABLE>

                                      -i-
<PAGE>
<TABLE>
<S>                                                                                                                       <C>
    5.3.       Lien Perfection; Further Assurances......................................................................  21
    5.4.       Lien on Realty...........................................................................................  22

SECTION 6.  COLLATERAL ADMINISTRATION...................................................................................  22
    6.1.       General..................................................................................................  22
    6.2.       Administration of Accounts...............................................................................  23
    6.3.       Administration of Inventory..............................................................................  25
    6.4.       Records and Schedules of Equipment.......................................................................  25
    6.5.       Payment of Charges.......................................................................................  26

SECTION 7.  REPRESENTATIONS AND WARRANTIES..............................................................................  26
    7.1.       General Representations and Warranties...................................................................  26
    7.2.       Continuous Nature of Representations and Warranties......................................................  33
    7.3.       Survival of Representations and Warranties...............................................................  34

SECTION 8.  COVENANTS  AND  CONTINUING  AGREEMENTS......................................................................  34
    8.1.       Affirmative Covenants....................................................................................  34
    8.2.       Negative Covenants.......................................................................................  37

SECTION 9.  CONDITIONS PRECEDENT........................................................................................  45
    9.1.       Conditions to Effectiveness of this Agreement............................................................  45
    9.2.       Conditions to Future Advances............................................................................  46

SECTION 10.  EVENTS OF DEFAULT; RIGHTS AND REMEDIES ON DEFAULT..........................................................  47
    10.1.      Events of Default........................................................................................  47
    10.2.      Acceleration of the Obligations..........................................................................  49
    10.3.      Other Remedies...........................................................................................  50
    10.4.      Set Off and Sharing of Payments..........................................................................  51
    10.5.      Remedies Cumulative; No Waiver...........................................................................  52

SECTION 11.  THE AGENT..................................................................................................  52
    11.1.      Authorization and Action.................................................................................  52
    11.2.      Agent's Reliance, Etc....................................................................................  53
    11.3.      Fleet and Affiliates.....................................................................................  54
    11.4.      Lender Credit Decision...................................................................................  54
    11.5.      Indemnification..........................................................................................  54
    11.6.      Rights and Remedies to be Exercised by Agent Only........................................................  55
    11.7.      Agency Provisions Relating to Collateral.................................................................  55
    11.8.      Agent's Right to Purchase Commitments....................................................................  56
    11.9.      Right of Sale, Assignment, Participations................................................................  56
    11.10.     Amendment................................................................................................  58
    11.11.     Agent's Limited Call Right...............................................................................  58
    11.12.     Resignation of Agent; Appointment of Successor...........................................................  59
    11.13.     Syndication Agent and Documentation Agents...............................................................  59
</TABLE>

                                      -ii-
<PAGE>
<TABLE>
<S>                                                                                                                       <C>
SECTION 12.  MISCELLANEOUS..............................................................................................  59
    12.1.      Power of Attorney........................................................................................  59
    12.2.      Indemnity................................................................................................  60
    12.3.      Sale of Interest.........................................................................................  61
    12.4.      Severability.............................................................................................  61
    12.5.      Successors and Assigns...................................................................................  61
    12.6.      Cumulative Effect; Conflict of Terms.....................................................................  61
    12.7.      Execution in Counterparts................................................................................  61
    12.8.      Notice...................................................................................................  61
    12.9.      Consent..................................................................................................  62
    12.10.     Credit Inquiries.........................................................................................  63
    12.11.     Time of Essence..........................................................................................  63
    12.12.     Entire Agreement.........................................................................................  63
    12.13.     Interpretation...........................................................................................  63
    12.14.     Confidentiality..........................................................................................  63
    12.15.     GOVERNING LAW; CONSENT TO FORUM..........................................................................  63
    12.16.     WAIVERS BY BORROWER......................................................................................  64
    12.17.     Advertisement............................................................................................  65
</TABLE>

                                     -iii-
<PAGE>
                              AMENDED AND RESTATED
                           LOAN AND SECURITY AGREEMENT

         THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT is made as of
this ____ day of __________, 2002, by and among FLEET CAPITAL CORPORATION
("Fleet"), a Rhode Island corporation with an office at One South Wacker Drive,
Suite 1400, Chicago, Illinois 60606, individually as a Lender and as Agent
("Agent") for itself and any other financial institution which is or becomes a
party hereto (each such financial institution, including Fleet, is referred to
hereinafter individually as a "Lender" and collectively as the "Lenders"),
FOOTHILL CAPITAL CORPORATION, a California corporation with an office at 2450
Colorado Avenue, Suite 3000 West, Santa Monica, California 90404, individually
as a Lender and as Syndication Agent for itself and the Lenders, THE CIT
GROUP/BUSINESS CREDIT, INC., a New York corporation with an office at 10 South
LaSalle Street, 22nd Floor, Chicago, Illinois 60603, individually as a lender
and as a Documentation Agent for itself and the Lenders, GMAC BUSINESS CREDIT,
LLC, a Delaware limited liability company with an office at 461 Fifth Avenue,
21st Floor, New York, New York 10017, individually as a lender and as a
Documentation Agent for itself and the Lenders, the LENDERS and WEIRTON STEEL
CORPORATION, a Delaware corporation with its principal executive office at 400
Three Springs Drive, Weirton, West Virginia 26062 ("Borrower"). Capitalized
terms used in this Agreement have the meanings assigned to them in Appendix A,
General Definitions. Accounting terms not otherwise specifically defined herein
shall be construed in accordance with GAAP consistently applied. This Agreement
shall become effective on the Effective Date, and, at such time, shall amend,
restate, supercede and replace in its entirety that certain Loan and Security
Agreement dated as of October 26, 2001, as amended or otherwise modified through
the date hereof, by and among Agent, Syndication Agent, each Documentation
Agent, Lenders and Borrower (the "Original Loan Agreement"). Until the Effective
Date, this Agreement shall have no force or effect and the Original Loan
Agreement shall remain in full force and effect. If the Effective Date does not
occur on or before June 30, 2002 this Agreement shall be null and void.

                           SECTION 1. CREDIT FACILITY

         Subject to the terms and conditions of, and in reliance upon the
representations and warranties made in, this Agreement and the other Loan
Documents, Lenders agree to make a Total Credit Facility of up to $200,000,000
available upon Borrower's request therefor, as follows:

         1.1.     Loans.

         1.1.1. Revolving Credit Loans. Each Lender agrees, severally and not
     jointly, for so long as no Default or Event of Default exists, to make
     Revolving Credit Loans to Borrower from time to time during the period from
     the date hereof to but not including the last day of the Term, as requested
     by Borrower in the manner set forth in subsection 3.1.1 hereof, up to a
     maximum principal amount at any time outstanding equal to the lesser of (i)
     such Lender's Revolving Loan Commitment minus the

                                      -1-
<PAGE>
     product of such Lender's Revolving Loan Percentage and the LC Amount
     minus the product of such Lender's Revolving Loan Percentage and reserves,
     if any or (ii) the product of such Lender's Revolving Loan Percentage and
     an amount equal to the Borrowing Base at such time minus the LC Amount
     minus reserves, if any. Agent shall have the right to establish reserves in
     such amounts, and with respect to such matters, as Agent shall deem
     necessary or appropriate in its judgment, against the amount of Revolving
     Credit Loans which Borrower may otherwise request under this subsection
     1.1.1, including without limitation with respect to (i) price adjustments,
     damages, unearned discounts, returned products or other matters for which
     credit memoranda are issued in the ordinary course of Borrower's business;
     (ii) potential dilution related to Accounts; (iii) shrinkage and
     obsolescence of Borrower's Inventory; (iv) slow moving, damaged or
     defective Inventory; (v) other sums chargeable against Borrower's Loan
     Account as Revolving Credit Loans under any section of this Agreement; (vi)
     amounts owing by Borrower to any Person to the extent secured by a Lien on,
     or trust over, any Property of Borrower; (vii) accrued and unpaid interest
     in respect of the Senior Notes and the Indebtedness under the City Loan
     Agreement outstanding on the date of completion of the Permitted Note
     Exchange Offer and accruing thereafter; (viii) accrued and unpaid interest
     to be paid in cash in respect of the Exchange Instruments (which reserve
     shall be adjusted on a monthly basis); (ix) amounts that may be owing by
     Borrower in connection with Product Obligations; and (x) such other
     specific events, conditions or contingencies as to which Agent, in its
     reasonable credit judgment, determines reserves should be established from
     time to time hereunder. Notwithstanding the foregoing, Agent shall not
     establish any reserves in respect of any matters relating to any items of
     Collateral that have been taken into account in determining Eligible
     Inventory or Eligible Accounts, as applicable. The Revolving Credit Loans
     shall be repayable in accordance with the terms of the Revolving Notes and
     shall be secured by all of the Collateral. The Revolving Credit Loans may
     be repaid and reborrowed without penalty, subject to the provisions of
     subsection 3.2.5.

         1.1.2. Intentionally Omitted.

         1.1.3. Use of Proceeds. The Revolving Credit Loans shall be used solely
     for Borrower's general operating capital needs in a manner consistent with
     the provisions of this Agreement and all applicable laws, and for other
     purposes permitted under this Agreement.

         1.1.4. Collateral Protection Loans. Upon the occurrence and during the
     continuance of an Event of Default, Agent, in its sole discretion, may make
     Revolving Credit Loans, in an aggregate amount not to exceed $7,000,000, if
     Agent deems that such Revolving Credit Loans are necessary to protect all
     or any portion of the Collateral (hereinafter, "Collateral Protection
     Loans"). Each Lender shall be obligated to advance its Revolving Loan
     Percentage of each Collateral Protection Loan. If Collateral Protection
     Loans are made pursuant to the preceding sentence, then (a) the Borrowing
     Base shall be deemed increased by the amount of such permitted Collateral
     Protection Loans, but only for so long as Agent allows such

                                      -2-
<PAGE>
     Collateral Protection Loans to be outstanding, and (b) all Lenders that
     have committed to make Revolving Credit Loans shall be bound to make, or
     permit to remain outstanding, such Collateral Protection Loans based upon
     their Revolving Loan Percentages in accordance with the terms of this
     Agreement. In no event shall Agent make Collateral Protection Loans under
     this subsection 1.1.4 to the extent such Collateral Protection Loans would
     cause a Lender's share of the Revolving Credit Loans (inclusive of such
     Collateral Protection Loans) to exceed such Lender's Revolving Loan
     Commitment minus the product of such Lender's Revolving Loan Percentage and
     the LC Amount minus the product of such Lender's Revolving Loan Percentage
     and reserves, if any.

         1.1.5. Swingline Loans. In order to reduce the frequency of transfers
     of funds from Lenders to Agent for making Revolving Credit Loans and for so
     long as no Default or Event of Default exists, Agent shall be permitted
     (but not required) to make Revolving Credit Loans to Borrower upon request
     by Borrower (such Revolving Credit Loans to be designated as "Swingline
     Loans") provided that the aggregate amount of Swingline Loans outstanding
     at any time will not (i) exceed $10,000,000; (ii) when added to the
     principal amount of all other Revolving Credit Loans then outstanding plus
     the LC Amount, exceed the total Revolving Credit Commitments of all
     Lenders; or (iii) when added to the principal amount of all other Revolving
     Credit Loans then outstanding plus the LC Amount plus reserves, if any,
     exceed the Borrowing Base. Within the foregoing limits, Borrower may
     borrow, repay and reborrow Swingline Loans. All Swingline Loans shall be
     treated as Revolving Credit Loans for purposes of this Agreement, except
     that all Swingline Loans shall be Base Rate Portions. Lenders shall
     reimburse Agent for their pro rata portions of the Swingline Loans on a
     weekly (or more frequently, as determined by Agent in its sole discretion)
     basis, in accordance with their respective Revolving Loan Percentages.

         1.2. Letters of Credit; LC Guaranties.

         Agent agrees, for so long as no Default or Event of Default exists and
if requested by Borrower, to (i) issue its, or cause to be issued by Bank or
another Affiliate of Agent, on the date requested by Borrower, Letters of Credit
for the account of Borrower or (ii) execute LC Guaranties by which Agent, Bank,
or another Affiliate of Lender, on the date requested by Borrower, shall
guaranty the payment or performance by Borrower of its reimbursement obligations
with respect to Letters of Credit and standby letters of credit issued for
Borrower's account by other Persons in support of Borrower's obligations (other
than obligations for the repayment of Money Borrowed); provided that the LC
Amount shall not exceed $25,000,000 at any time. No Letter of Credit or LC
Guaranty may have an expiration date after the 30th day prior to the last day of
the Term. Notwithstanding anything to the contrary contained herein, Borrower,
Agent and Lenders hereby agree that all LC Obligations and all obligations of
Borrower relating thereto shall be satisfied by the prompt issuance of one or
more Revolving Credit Loans that are Base Rate Portions, which Borrower hereby
acknowledges are requested and Lenders hereby agree to fund. In the event that
Revolving Credit Loans are not, for any reason, promptly made to satisfy all
then existing LC Obligations,

                                      -3-
<PAGE>
each Lender hereby agrees to pay to Agent, on demand, an amount equal to such LC
Obligations multiplied by such Lender's Revolving Loan Percentage, and until so
paid, such amount shall be secured by the Collateral and shall bear interest and
be payable at the same rate and in the same manner as Base Rate Portions.
Immediately upon the issuance of a Letter of Credit or an LC Guaranty under this
Agreement, each Lender shall be deemed to have irrevocably and unconditionally
purchased and received from Agent, without recourse or warranty, an undivided
interest and participation therein equal to such LC Obligations multiplied by
such Lender's Revolving Loan Percentage.

         1.3. Tandem Mill Subfacility.

         Each Lender severally made a loan (collectively, the "Tandem Mill
Subfacility") to Borrower on the Original Closing Date, in the aggregate
principal amount of $25,000,000, which is repayable in accordance with the terms
of the Tandem Mill Subfacility Loan Notes and is secured by all of the
Collateral. On the Effective Date, Borrower shall be deemed to have borrowed
Revolving Credit Loans pursuant to subsection 1.1.1 in an aggregate amount
sufficient to repay in full the Tandem Mill Subfacility, at which time the
Tandem Mill Subfacility shall terminate. Each Lender shall promptly thereafter
transmit its original Tandem Mill Subfacility Loan Note to Agent for
cancellation and return to Borrower.

         1.4. Effect of Amendment and Restatement.

         On the Effective Date, the indebtedness and other liabilities of
Borrower previously governed by the Original Loan Agreement, except to the
extent provided in Section 1.3 with respect to the Tandem Mill Subfacility on
the Effective Date, shall continue in full force and effect, but shall be
governed by the terms and conditions set forth in this Agreement. Such
liabilities, together with any and all additional liabilities incurred by
Borrower hereunder or under any of the other Loan Documents, shall continue to
be secured by, among other things, the Collateral, whether now existing or
hereafter acquired and wheresoever located, all as more specifically set forth
herein and in the Security Documents. Borrower hereby reaffirms its obligations,
liabilities, grants of security interests, pledges and the validity of all
covenants by Borrower contained in any and all Security Documents. The execution
and delivery of this Agreement shall not constitute a novation or repayment of
the indebtedness outstanding under the Original Loan Agreement. Borrower hereby
acknowledges and agrees that on and after the Effective Date any and all
references in any Loan Documents to the Original Loan Agreement shall be deemed
to be amended to refer to this Agreement. Borrower hereby reaffirms its
obligations, liabilities and indebtedness arising under each of the Loan
Documents existing on the date hereof, in each case after giving effect to the
provisions of the preceding sentence.

                      SECTION 2. INTEREST, FEES AND CHARGES

         2.1. Interest.

         2.1.1. Rates of Interest. Interest shall accrue on the principal amount
     of the Base Rate Portions outstanding at the end of each day at a
     fluctuating rate per annum equal to the Applicable Margin then in effect
     plus the Base Rate. Said rate of interest

                                      -4-
<PAGE>
     shall increase or decrease by an amount equal to any increase or
     decrease in the Base Rate, effective as of the opening of business on the
     day that any such change in the Base Rate occurs. If Borrower exercises its
     LIBOR Option as provided in Section 3.1, interest shall accrue on the
     principal amount of the LIBOR Portions outstanding at the end of each day
     at a rate per annum equal to the Applicable Margin then in effect plus the
     LIBOR applicable to each LIBOR Portion for the corresponding Interest
     Period.

         2.1.2. Default Rate of Interest. At the option of Agent or the Majority
     Lenders, upon and after the occurrence of an Event of Default, and during
     the continuation thereof, the principal amount of all Loans shall bear
     interest at a rate per annum equal to 2.0% plus the interest rate otherwise
     applicable thereto (the "Default Rate").

         2.1.3. Maximum Interest. In no event whatsoever shall the aggregate of
     all amounts deemed interest hereunder or under the Notes and charged or
     collected pursuant to the terms of this Agreement or pursuant to the Notes
     exceed the highest rate permissible under any law which a court of
     competent jurisdiction shall, in a final determination, deem applicable
     hereto (the "Maximum Rate"). If at any time, the amount of interest paid
     hereunder is limited by the Maximum Rate, and the amount at which interest
     accrues hereunder is subsequently below the Maximum Rate, the rate at which
     interest accrues hereunder shall remain at the Maximum Rate, until such
     time as the aggregate interest paid hereunder equals the amount of interest
     that would have been paid had the Maximum Rate not applied. If any
     provisions of this Agreement or the Notes are in contravention of any such
     law, such provisions shall be deemed amended to conform thereto.

         2.2. Computation of Interest and Fees.

         Interest, Letter of Credit and LC Guaranty fees and Unused Line Fees
hereunder shall be calculated daily and shall be computed on the actual number
of days elapsed over a year of 360 days.

         2.3. Fee Letters.

         Borrower shall pay to Agent certain fees and other amounts in
accordance with the terms of the two fee letters between Borrower and Agent (the
"Fee Letters").

         2.4. Letter of Credit and LC Guaranty Fees.

         Borrower shall pay to Agent for standby Letters of Credit and LC
Guaranties of standby letter of credit, for the ratable benefit of Lenders, a
per annum fee equal to the Applicable Margin then in effect for LIBOR Portions,
of the aggregate face amount of such Letters of Credit and LC Guaranties
outstanding from time to time during the term of this Agreement, plus all normal
and customary charges associated with the issuance thereof, which fees and
charges shall be deemed fully earned upon issuance of each such Letter of Credit
or LC

                                      -5-
<PAGE>
Guaranty, shall be due and payable on the first Business Day of each month and
shall not be subject to rebate or proration upon the termination of this
Agreement for any reason. Notwithstanding the foregoing, of the fee described
above, a portion thereof equal to .25% per annum shall be payable to the issuer
of the Letter of Credit or LC Guaranty as applicable, and the balance shall be
retained, ratably, by the Lenders.

         2.5. Unused Line Fee.

         Borrower shall pay to Agent, for the ratable benefit of Lenders, a per
annum fee (the "Unused Line Fee") equal to .50% multiplied by the average daily
amount by which $200,000,000 exceeds the sum of (i) the outstanding principal
balance of the Loans plus (ii) the LC Amount; provided, that for purposes of
allocating the Unused Line Fee among Lenders, outstanding Swingline Loans shall
not be included as part of the outstanding principal balance of the Loans for
purposes of calculating such fees owed to Lenders other than Agent). The Unused
Line Fee shall be payable monthly in arrears on the first day of each month
hereafter.

         2.6. Facility Reduction/Termination.

         If, prior to the second anniversary of the Original Closing Date, (i)
Borrower elects to terminate this Agreement, (ii) the Revolving Loan Commitments
are otherwise terminated or (iii) Borrower makes optional reductions of the
Revolving Loan Commitments pursuant to the provisions of subsection 3.3.1 in an
aggregate amount in excess of $20,000,000, Borrower shall pay to Agent, for the
ratable benefit of Lenders (in addition to any other amounts due and owing
pursuant to this Agreement, including amounts due and owing pursuant to the
provisions of subsection 3.2.5), an amount equal to 2% of the Total Credit
Facility if any of such events occurs on or before the first anniversary of the
Original Closing Date and 1% of the Total Credit Facility if any of such events
occurs after the first anniversary of the Original Closing Date and on or before
the second anniversary of the Original Closing Date.

         2.7. Audit Fees.

         Borrower shall pay to Agent audit fees in accordance with Agent's
schedule of fees in effect from time to time in connection with audits of the
books and records and Properties of Borrower and its Subsidiaries and such other
matters as Agent shall deem appropriate in its judgment, plus all reasonable
out-of-pocket expenses incurred by Agent in connection with such audits, whether
such audits are conducted by employees of Agent or by third parties hired by
Agent. As of the Closing Date, Agent is charging audit fees at a rate equal to
$750 per auditor work day, plus all reasonable out-of-pocket expenses. Such
audit fees and out-of-pocket expenses shall be payable immediately upon demand
therefor by Agent from time to time. Agent may, in its discretion, provide for
the payment of such amounts by making appropriate Revolving Credit Loans to
Borrower and charging Borrower's Loan Account therefor.

                                      -6-
<PAGE>
         2.8. Reimbursement of Expenses.

         If, at any time or times regardless of whether or not an Event of
Default then exists, (i) Agent incurs reasonable legal or accounting expenses or
any other reasonable costs or out-of-pocket expenses in connection with (1) the
negotiation and preparation of this Agreement or any of the other Loan
Documents, any amendment of or modification of this Agreement or any of the
other Loan Documents, or any syndication or attempted syndication of the
Obligations (including, without limitation, printing and distribution of
materials to prospective Lenders and all costs associated with bank meetings,
but excluding any closing fees paid to Lenders in connection therewith) or (2)
the administration of this Agreement or any of the other Loan Documents and the
transactions contemplated hereby and thereby; or (ii) Agent or any Lender incurs
legal or accounting expenses or any other costs or out-of-pocket expenses in
connection with (1) any litigation, contest, dispute, suit, proceeding or action
(whether instituted by Agent, any Lender, Borrower or any other Person) relating
to the Collateral, this Agreement or any of the other Loan Documents or
Borrower's, any of its Subsidiaries' or any Guarantor's affairs; (2) any attempt
to enforce any rights of Agent or any Lender against Borrower or any other
Person which may be obligated to Agent or any Lender by virtue of this Agreement
or any of the other Loan Documents, including, without limitation, the Account
Debtors; or (3) any attempt to inspect, verify, protect, preserve, restore,
collect, sell, liquidate or otherwise dispose of or realize upon the Collateral;
then all such legal and accounting expenses, other costs and out of pocket
expenses of Agent or any Lender, as applicable, shall be charged to Borrower;
provided, that Borrower shall not be responsible for such costs and
out-of-pocket expenses to the extent incurred because of the gross negligence or
willful misconduct of Agent or any Lender. All amounts chargeable to Borrower
under this Section 2.8 shall be Obligations secured by all of the Collateral,
shall be payable on demand to Agent or such Lender, as the case may be, and
shall bear interest from the date such demand is made until paid in full at the
rate applicable to Base Rate Portions from time to time. Borrower shall also
reimburse Agent for expenses incurred by Agent in its administration of the
Collateral to the extent and in the manner provided in Sections 2.9 and 2.10
hereof.

         2.9. Bank Charges.

         Borrower shall pay to Agent, on demand, any and all fees, costs or
expenses which Agent or any Lender pays to a bank or other similar institution
arising out of or in connection with (i) the forwarding to Borrower or any other
Person on behalf of Borrower, by Agent or any Lender, of proceeds of Loans made
to Borrower pursuant to this Agreement and (ii) the depositing for collection by
Agent or any Lender of any check or item of payment received or delivered to
Agent or any Lender on account of the Obligations.

         2.10. Collateral Protection Expenses; Appraisals.

         All out-of-pocket expenses incurred in protecting, storing,
warehousing, insuring, handling, maintaining and shipping the Collateral, and
any and all excise, property, sales, and use taxes imposed by any state,
federal, or local authority on any of the Collateral or in respect of the sale
thereof shall be borne and paid by Borrower. If Borrower fails to promptly pay
any portion thereof when due, Agent may, at its option, but shall not be
required to, pay the same

                                      -7-
<PAGE>
and charge Borrower therefor. Additionally, from time to time, Agent may, at
Borrower's expense, obtain appraisals from appraisers (who may be personnel of
Agent), stating the then current fair market value of all or any portion of the
real estate or personal property of Borrower or any of its Subsidiaries.
Borrower acknowledges that as of the Closing Date, Agent intends to obtain new
appraisals of Borrower's Inventory at least four times annually.

         2.11. Payment of Charges.

         All amounts chargeable to Borrower under this Agreement shall be
Obligations secured by all of the Collateral, shall be, unless specifically
otherwise provided, payable on demand and shall bear interest from the date
demand was made or such amount is due, as applicable, until paid in full at the
rate applicable to Base Rate Portions from time to time.

         2.12. No Deductions.

         Any and all payments or reimbursements made hereunder shall be made
free and clear of and without deduction for any and all taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto;
excluding, however, the following: taxes imposed on the income of Agent or any
Lender or franchise taxes by the jurisdiction under the laws of which Agent or
any Lender is organized or doing business or any political subdivision thereof
and taxes imposed on its income by the jurisdiction of Agent's or such Lender's
applicable lending office or any political subdivision thereof or franchise
taxes (all such taxes, levies, imposts, deductions, charges or withholdings and
all liabilities with respect thereto excluding such taxes imposed on net income,
herein "Tax Liabilities"). If Borrower shall be required by law to deduct any
such Tax Liabilities from or in respect of any sum payable hereunder to Agent or
any Lender, then the sum payable hereunder shall be increased as may be
necessary so that, after all required deductions are made, Agent or such Lender
receives an amount equal to the sum it would have received had no such
deductions been made.

                        SECTION 3. LOAN ADMINISTRATION.

         3.1. Manner of Borrowing Revolving Credit Loans/LIBOR Option.

         Borrowings under the credit facility established pursuant to Section 1
hereof shall be as follows:

         3.1.1. Loan Requests. A request for a Revolving Credit Loan (including
     without limitation a Swingline Loan) shall be made, or shall be deemed to
     be made, in the following manner: (i) Borrower may give Agent notice of its
     intention to borrow, in which notice Borrower shall specify the amount of
     the proposed borrowing and the proposed borrowing date, no later than 11:00
     a.m. (Chicago, Illinois time) on the proposed borrowing date (or in
     accordance with subsection 3.1.7, 3.1.8 or 3.1.9, as applicable, in the
     case of a request for a LIBOR Portion), provided, however, that no such
     request may be made at a time when there exists a Default or an Event of
     Default; and (ii) the becoming due of any amount required to be paid under
     this Agreement, or the Notes, whether as interest or for any other
     Obligation, shall be

                                      -8-
<PAGE>
     deemed irrevocably to be a request for a Revolving Credit Loan on the
     due date in the amount required to pay such interest or other Obligation.

         3.1.2. Disbursement. Borrower hereby irrevocably authorizes Agent to
     disburse the proceeds of each Revolving Credit Loan requested, or deemed to
     be requested, pursuant to subsection 3.1.1 as follows: (i) the proceeds of
     each Revolving Credit Loan requested under subsection 3.1.1(i) shall be
     disbursed by Agent in lawful money of the United States of America in
     immediately available funds, in the case of the initial borrowing, in
     accordance with the terms of the written disbursement letter from Borrower,
     and in the case of each subsequent borrowing, by wire transfer to such bank
     account as may be agreed upon by Borrower and Agent from time to time or
     elsewhere if pursuant to a written direction from Borrower; and (ii) the
     proceeds of each Revolving Credit Loan deemed requested under subsection
     3.1.1(ii) shall be disbursed by Agent by way of direct payment of the
     relevant interest or other Obligation. If at any time a Revolving Credit
     Loan is funded by Agent or Lenders in excess of the amount requested or
     deemed requested by Borrower, Borrower agrees to repay the excess to Agent
     immediately upon the earlier to occur of (a) Borrower's discovery of the
     error and (b) notice thereof to Borrower from Agent or any Lender.

         3.1.3. Payment by Lenders. Agent shall give to each Lender prompt
     written notice by facsimile, telex or cable of the receipt by Agent from
     Borrower of any request for a Revolving Credit Loan. Each such notice shall
     specify the requested date and amount of such Revolving Credit Loan,
     whether such Revolving Credit Loan shall be subject to the LIBOR Option,
     and the amount of each Lender's advance thereunder (in accordance with its
     applicable Revolving Loan Percentage). Each Lender shall, not later than
     12:00 p.m. (Chicago time) on such requested date, wire to a bank designated
     by Agent the amount of that Lender's Revolving Loan Percentage of the
     requested Revolving Credit Loan. The failure of any Lender to make the
     Revolving Credit Loans to be made by it shall not release any other Lender
     of its obligations hereunder to make its Revolving Credit Loan. Neither
     Agent nor any other Lender shall be responsible for the failure of any
     other Lender to make the Revolving Credit Loan to be made by such other
     Lender. The foregoing notwithstanding, Agent, in its sole discretion, may
     from its own funds make a Revolving Credit Loan on behalf of any Lender. In
     such event, the Lender on behalf of whom Agent made the Revolving Credit
     Loan shall reimburse Agent for the amount of such Revolving Credit Loan
     made on its behalf, on a weekly (or more frequent, as determined by Agent
     in its sole discretion) basis. On each such settlement date, Agent will pay
     to each Lender the net amount owing to such Lender in connection with such
     settlement, including without limitation amounts relating to Loans, fees,
     interest and other amounts payable hereunder. Swingline Loans will be
     settled between Agent and Lenders at the same time as other Revolving
     Credit Loans. The entire amount of interest attributable to each Revolving
     Credit Loan (including Swingline Loans) for the period from the date on
     which such Revolving Credit Loan was made by Agent on such Lender's behalf
     until Agent is reimbursed by such Lender, shall be paid to Agent for its
     own account.

                                      -9-
<PAGE>
         3.1.4. Authorization. Borrower hereby irrevocably authorizes Agent, in
     Agent's sole discretion, to advance to Borrower, and to charge to
     Borrower's Loan Account hereunder as a Revolving Credit Loan (which shall
     be a Base Rate Portion), a sum sufficient to pay all interest accrued on
     the Obligations during the immediately preceding month and to pay all fees,
     costs and expenses and other Obligations at any time owed by Borrower to
     Agent or any Lender hereunder.

         3.1.5. Letter of Credit and LC Guaranty Requests. A request for a
     Letter of Credit or LC Guaranty shall be made in the following manner:
     Borrower may give Agent and Bank a written notice of its request for the
     issuance of a Letter of Credit or LC Guaranty, not later than 11:00 a.m.
     (Chicago, Illinois time), one Business Day before the proposed issuance
     date thereof, in which notice Borrower shall specify the proposed issuer,
     issuance date and format and wording for the Letter of Credit or LC
     Guaranty being requested (which shall be satisfactory to Agent and the
     Person being asked to issue such Letter of Credit or LC Guaranty);
     provided, that no such request may be made at a time when there exists a
     Default or Event of Default. Such request shall be accompanied by an
     executed application and reimbursement agreement in form and substance
     satisfactory to Agent and the Person being asked to issue the Letter of
     Credit or LC Guaranty, as well as any required resolutions.

         3.1.6. Method of Making Requests. As an accommodation to Borrower,
     unless a Default or an Event of Default is then in existence, (i) Agent
     shall permit telephonic or electronic requests for Revolving Credit Loans
     to Agent, (ii) Agent and Bank may, in their discretion, permit electronic
     transmittal of requests for Letters of Credit and LC Guaranties to them,
     and (iii) Agent may, in Agent's discretion, permit electronic transmittal
     of instructions, authorizations, agreements or reports to Agent. Unless
     Borrower specifically directs Agent or Bank in writing not to accept or act
     upon telephonic or electronic communications from Borrower, neither Agent
     nor Bank shall have any liability to Borrower for any loss or damage
     suffered by Borrower as a result of Agent's or Bank's honoring of any
     requests, execution of any instructions, authorizations or agreements or
     reliance on any reports communicated to it telephonically or electronically
     and purporting to have been sent to Agent or Bank by Borrower, and neither
     Agent nor Bank shall have any duty to verify the origin of any such
     communication or the authority of the Person sending it. Each telephonic
     request for a Revolving Credit Loan, Letter of Credit or LC Guaranty
     accepted by Agent and Bank, if applicable, hereunder shall be promptly
     followed by a written confirmation of such request from Borrower to Lender
     and Bank, if applicable.

         3.1.7. LIBOR Portions. Notwithstanding the provisions of subsection
     3.1.1, and provided that as of both the date of the LIBOR Request and the
     first day of the Interest Period, no Default or Event of Default exists, in
     the event Borrower desires to obtain a LIBOR Portion, Borrower shall give
     Agent a LIBOR Request no later than 11:00 a.m. (Chicago, Illinois time) on
     the third Business Day prior to the requested borrowing date. Each LIBOR
     Request shall be irrevocable and binding on Borrower. In no event shall
     Borrower be permitted to have outstanding at any one time LIBOR Portions
     with more than five (5) different Interest Periods.

                                      -10-
<PAGE>
         3.1.8. Conversion of Base Rate Portions. Provided that as of both the
     date of the LIBOR Request and the first day of the Interest Period, no
     Default or Event of Default exists, Borrower may, on any Business Day,
     convert any Base Rate Portion into a LIBOR Portion. If Borrower desires to
     convert a Base Rate Portion, Borrower shall give Agent a LIBOR Request no
     later then 11:00 a.m. (Chicago, Illinois time) on the third Business Day
     prior to the requested conversion date. After giving effect to any
     conversion of Base Rate Portions to LIBOR Portions, Borrower shall not be
     permitted to have outstanding at any one time LIBOR Portions with more than
     five (5) different Interest Periods.

         3.1.9. Continuation of LIBOR Portions. Provided that as of both the
     date of the LIBOR Request and the first day of the Interest Period, no
     Default or Event of Default exists, Borrower may, on any Business Day,
     continue any LIBOR Portions into a subsequent Interest Period of the same
     or a different permitted duration. If Borrower desires to continue a LIBOR
     Portion, Borrower shall give Agent a LIBOR Request no later than 11:00 a.m.
     (Chicago, Illinois time) on the third Business Day prior to the requested
     continuation date. After giving effect to any continuation of LIBOR
     Portions, Borrower shall not be permitted to have outstanding at any one
     time separate LIBOR Portions with more than five (5) different Interest
     Periods. If Borrower shall fail to give timely notice of its election to
     continue any LIBOR Portion or portion thereof as provided above, or if such
     continuation shall not be permitted, such LIBOR Portion or portion thereof,
     unless such LIBOR Portion shall be repaid, shall automatically be converted
     into a Base Rate Portion at the end of the Interest Period then in effect
     with respect to such LIBOR Portion.

         3.1.10. Inability to Make LIBOR Portions. Notwithstanding any other
     provision hereof, if any applicable law, treaty, regulation or directive,
     or any change therein or in the interpretation or application thereof,
     shall make it unlawful for any Lender (for purposes of this subsection
     3.1.10, the term "Lender" shall include the office or branch where such
     Lender or any corporation or bank then controlling such Lender makes or
     maintains any LIBOR Portions) to make or maintain its LIBOR Portions, or if
     with respect to any Interest Period, Agent is unable to determine the LIBOR
     relating thereto, or adverse or unusual conditions in, or changes in
     applicable law relating to, the London interbank market make it, in the
     reasonable judgment of Agent, impracticable to fund therein any of the
     LIBOR Portions, or make the projected LIBOR unreflective of the actual
     costs of funds therefor to any Lender, the obligation of Agent and Lenders
     to make or continue LIBOR Portions or convert Base Rate Portions to LIBOR
     Portions hereunder shall forthwith be suspended during the pendency of such
     circumstances and Borrower shall, if any affected LIBOR Portions are then
     outstanding, promptly upon request from Agent, convert such affected LIBOR
     Portions into Base Rate Portions.

         3.2. Payments.

         Except where evidenced by notes or other instruments issued or made by
Borrower to any Lender and accepted by such Lender specifically containing
payment

                                      -11-
<PAGE>
instructions that are in conflict with this Section 3.2 (in which case the
conflicting provisions of said notes or other instruments shall govern and
control), the Obligations shall be payable as follows:

         3.2.1. Principal.

                (i) Revolving Credit Loans. Principal on account of Revolving
         Credit Loans shall be payable by Borrower to Agent for the ratable
         benefit of Lenders immediately upon the earliest of (i) the receipt by
         Agent or Borrower of any proceeds of any of the Collateral (except as
         otherwise provided herein), including without limitation pursuant to
         (a) subsection 6.2.4, to the extent of said proceeds, subject to
         Borrower's rights to reborrow such amounts in compliance with
         subsection 1.1.1 hereof and (b) subsection 3.3.2, to the extent of said
         proceeds, subject to the provisions thereof regarding the possible
         reborrowing of such proceeds, the possible pledging of such proceeds or
         the possible permanent reduction of the Revolving Loan Commitments;
         (ii) the occurrence of an Event of Default in consequence of which
         Agent or Majority Lenders elect to accelerate the maturity and payment
         of the Obligations, or (iii) termination of this Agreement pursuant to
         Section 4 hereof. Each payment (including principal prepayment) by
         Borrower on account of principal of the Revolving Credit Loans shall be
         applied first to Base Rate Portions and then to LIBOR Portions.

                (ii) Intentionally omitted.

                (iii) Overadvances. If an Overadvance shall exist at any time,
         Borrower shall, on demand, repay the Overadvance.

         3.2.2. Interest.

                (i) Base Rate Portion. Interest accrued on Base Rate Portions
         shall be due and payable on the earliest of (1) the first calendar day
         of each month (for the immediately preceding month), computed through
         the last calendar day of the preceding month, (2) the occurrence of an
         Event of Default in consequence of which Agent or Majority Lenders
         elect to accelerate the maturity and payment of the Obligations or (3)
         termination of this Agreement pursuant to Section 4 hereof.

                (ii) LIBOR Portion. Interest accrued on each LIBOR Portion
         shall be due and payable on each LIBOR Interest Payment Date and on the
         earlier of (1) the occurrence of an Event of Default in consequence of
         which Agent or Majority Lenders elect to accelerate the maturity and
         payment of the Obligations or (2) termination of this Agreement
         pursuant to Section 4 hereof.

         3.2.3. Costs, Fees and Charges. Costs, fees and charges payable
     pursuant to this Agreement shall be payable by Borrower to Agent, as and
     when provided in

                                      -12-
<PAGE>
     Section 2 or Section 3 hereof, as applicable to Agent or a Lender, as
     applicable, or to any other Person designated by Agent or such Lender in
     writing.

         3.2.4. Other Obligations. The balance of the Obligations requiring the
     payment of money, if any, shall be payable by Borrower to Agent for
     distribution to Lenders, as appropriate, as and when provided in this
     Agreement, the Other Agreements or the Security Documents, or on demand,
     whichever is later.

         3.2.5. Prepayment of/Failure to Borrow LIBOR Portions. Borrower may
     prepay a LIBOR Portion only upon at least three (3) Business Days prior
     written notice to Agent (which notice shall be irrevocable). Borrower shall
     pay to each Lender, upon request of such Lender, such amount or amounts as
     shall be sufficient (in the reasonable opinion of such Lender) to
     compensate such Lender for any loss, cost, or expense incurred as a result
     of: (i) any payment of a LIBOR Portion on a date other than the last day of
     the Interest Period for such LIBOR Portion; (ii) any failure by Borrower to
     borrow a LIBOR Portion on the date specified by Borrower's LIBOR Request;
     or (iii) any failure by Borrower to pay a LIBOR Portion on the date for
     payment specified in Borrower's written notice. Without limiting the
     foregoing, Borrower shall pay to each Lender a "yield maintenance fee" in
     an amount computed as follows: the current rate for United States Treasury
     securities (bills on a discounted basis shall be converted to a bond
     equivalent) with a maturity date closest to the Interest Period chosen
     pursuant to the LIBOR Portion as to which the prepayment is made, shall be
     subtracted from the LIBOR in effect at the time of prepayment. If the
     result is zero or a negative number, there shall be no yield maintenance
     fee. If the result is a positive number, then the resulting percentage
     shall be multiplied by the amount of the principal balance being prepaid.
     The resulting amount shall be divided by 360 and multiplied by the number
     of days remaining in the Interest Period chosen pursuant to the LIBOR
     Portion as to which the prepayment is made. Said amount shall be reduced to
     present value calculated by using the above referenced United States
     Treasury securities rate and the number of days remaining in the term
     chosen pursuant to the LIBOR Portion as to which prepayment is made. The
     resulting amount shall be the yield maintenance fee due to the applicable
     Lender upon the prepayment of a LIBOR Portion. If by reason of an Event of
     Default, Agent or Majority Lenders elect to declare the Obligations to be
     immediately due and payable, then any yield maintenance fee with respect to
     a LIBOR Portion shall become due and payable in the same manner as though
     Borrower had exercised such right of prepayment.

         3.3. Optional Reductions/Prepayments.

         3.3.1. Optional Reductions of Revolving Loan Commitments. Borrower may,
     at its option from time to time upon not less than three (3) Business Days'
     prior written notice to Agent, terminate in whole or permanently reduce
     ratably in part, the unused portion of the Revolving Loan Commitments,
     provided, however, that each such partial reduction shall be in an amount
     of $5,000,000 or integral multiples of $500,000 in excess thereof. Except
     for charges under subsection 3.2.5 applicable to

                                      -13-
<PAGE>
     prepayments of LIBOR Portions and except for charges under Section 2.6
     applicable to a termination or reduction of the Revolving Loan Commitments,
     such reductions shall be without premium or penalty.

         3.3.2. Mandatory Prepayments. If Borrower or one of its Subsidiaries
     sells or finances any of the Collateral, or if any of the Collateral is
     lost, damaged, destroyed or taken by condemnation, Borrower shall, unless
     otherwise agreed by all Lenders, pay to Agent for the ratable benefit of
     Lenders, as and when received by Borrower or such Subsidiary and as a
     mandatory prepayment of the Loans, as herein provided, a sum equal to the
     proceeds (including insurance and condemnation payments, but net of costs
     and taxes incurred in connection with such event) received by Borrower or
     such Subsidiary for such sale, financing, loss, damage, destruction or
     condemnation. To the extent that the Collateral sold, financed, leased,
     lost, damaged, destroyed or condemned consists of Accounts, Inventory or
     other Property which is not "Collateral," as defined in the Exchange
     Intercreditor Agreement, the applicable prepayment shall be applied to
     reduce the outstanding principal balance of the Revolving Credit Loans, but
     shall not permanently reduce the Revolving Loan Commitments. To the extent
     that the Collateral sold, financed, leased, lost, damaged, destroyed, or
     condemned consists of Tandem Mill Collateral, Hot Mill Collateral, Tin Mill
     Collateral, or other Property which is "Collateral" as defined in the
     Exchange Intercreditor Agreement, the amount of such prepayment shall be as
     set forth in the Exchange Intercreditor Agreement, such prepayment will be
     applied to reduce the outstanding principal balance of the Revolving Credit
     Loans and, to the extent set forth below, such prepayment shall permanently
     reduce the Revolving Loan Commitments:

                (i) in the case of an Approved Sale, by an amount equal to the
         Net Cash Proceeds of such Approved Sale required by the terms of
         Majority Lenders' consent to such transaction (if required) to be paid
         to Agent and applied to the Revolving Credit Loans;

                 (ii) in the case of an Approved Sale and Leaseback not related
         to the Tandem Mill Collateral, by an amount equal to the Net Cash
         Proceeds of such Approved Sale and Leaseback required by the terms of
         Majority Lenders' consent to such transaction (if required) to be paid
         to Agent and applied to the Revolving Credit Loans;

                 (iii) in the case of an Approved Financing Transaction
         constituting a Permitted Tandem Mill Transaction, by an amount equal to
         the lesser of $25,000,000 and the amount of the Tandem Mill Financing
         Proceeds paid to Agent and applied to the Revolving Credit Loans, but
         only to the extent such reduction is required pursuant to the terms of
         clause (iv) of the definition of the term "Permitted Indebtedness"
         contained in the Exchange Note Indenture or clause (a) of the
         definition of the term "Permitted Liens" contained in the Exchange Note
         Indenture; and

                                      -14-
<PAGE>
                 (iv) in the case of proceeds of any of the Tandem Mill
         Collateral, any of the Tin Mill Collateral or any of the Hot Mill
         Collateral that consists of insurance arising from damage to or
         destruction of such Property or proceeds of condemnation awards with
         respect to such Property, by an amount set forth in the next paragraph.

     All of the proceeds of insurance or condemnation described in clause (iv)
     above shall be promptly delivered to Agent and placed in a cash collateral
     account in a financial institution acceptable to Agent that is pledged to
     Agent as security for the Obligations in a manner acceptable to Agent (a
     "Pledged Account") for a period of up to 30 days pending resolution of its
     application (provided, that if such pledged amounts are at any time
     thereafter applied to the Revolving Credit Loans, the Revolving Loan
     Commitments shall be permanently reduced by the amount of such pledged
     amounts so applied). If Borrower shall determine that it desires to repair,
     rebuild or replace the applicable Property, such amount shall remain in
     such Pledged Account and shall be released to Borrower as required in order
     to permit the repair, rebuilding or replacement of such Property; provided,
     that if (i) an Event of Default is then in existence or occurs during the
     period that all or a portion of such proceeds are located in the Pledged
     Account or (ii) such proceeds are not used for the purpose of repairing,
     rebuilding or replacing of such Property prior to the expiration of the
     Restoration Period, Majority Lenders shall have the right to (a) suspend
     Borrower's right to access such proceeds in the Pledged Account and (b)
     apply such amounts to the outstanding principal balance of the Revolving
     Credit Loans and shall permanently reduce the Revolving Loan Commitments by
     the amount of such proceeds so applied. If Borrower shall determine not to
     repair, rebuild or replace the applicable Property, such amounts shall be
     applied to the outstanding principal balance of the Revolving Credit Loans
     and shall permanently reduce the Revolving Loan Commitments by the amount
     of such proceeds so applied.

     For purposes hereof, the term "Restoration Period" means the period
     beginning on the date that the proceeds of insurance or condemnation, as
     applicable, are paid to Borrower and ending on the date, determined by
     Agent or its construction consultant, which would allow Borrower a
     sufficient amount of time to complete such repair, reconstruction or
     replacement if pursued diligently and continuously. Funds in the Pledged
     Account shall be disbursed upon satisfaction of such reasonable conditions
     as Agent may impose, including, without limitation, submission of invoices
     or paid receipts, lien waivers and evidence that funds adequate for
     completion of such repairs, reconstruction or replacement are available.

     Notwithstanding the foregoing provisions regarding the permanent reduction
     of the Revolving Loan Commitments, upon request by Borrower, Majority
     Lenders may agree to permit Borrower to use a portion of the Net Cash
     Proceeds of an Approved Sale or an Approved Sale and Leaseback not related
     to the Tandem Mill Collateral to purchase replacement Properties to be used
     in the business of making, processing or distributing steel products
     (including, without limitation, tin products or other coated steel
     products). If Majority Lenders so agree, the Net Cash Proceeds of such
     Approved Sale or Approved Sale and Leaseback shall be placed in and shall
     remain in a Pledged Account

                                      -15-
<PAGE>
     and shall be released to Borrower as required in order to permit the
     purchase of such replacement Properties; provided, that if (i) an Event of
     Default occurs during the period that all or a portion of such proceeds are
     located in the Pledged Account or (ii) such proceeds are not used for such
     purposes within 270 days after the original Approved Sale or Approved Sale
     and Leaseback, Majority Lenders shall have the right to (a) suspend
     Borrower's right to access such proceeds in the Pledged Account and (b)
     apply such amounts to the outstanding principal balance of the Revolving
     Credit Loans and shall permanently reduce the Revolving Loan Commitments by
     the amount of such proceeds so applied.

         3.4. Application of Payments and Collections.

         All items of payment received by Agent by 12:00 noon, Chicago,
Illinois, time, on any Business Day shall be deemed received on that Business
Day. All items of payment received after 12:00 noon, Chicago, Illinois, time, on
any Business Day shall be deemed received on the following Business Day.
Borrower irrevocably waives the right to direct the application of any and all
payments and collections at any time or times hereafter received by Agent from
or on behalf of Borrower, and Borrower does hereby irrevocably agree that Agent
shall have the continuing exclusive right to apply and reapply any and all such
payments and collections received at any time or times hereafter by Agent or its
agent against the Obligations, in such manner as Agent may deem advisable,
notwithstanding any entry by Agent or any Lender upon any of its books and
records. Amounts received by the Agent shall be for further credit to the
accounts of Lenders pursuant to the settlement procedures contained in
subsection 3.1.3 of this Agreement. Notwithstanding the foregoing, payments and
collections shall not be applied to Obligations consisting of Derivative
Obligations or Product Obligations at any time that any other Obligations are
then due and payable. If as the result of collections of Accounts as authorized
by subsection 6.2.4 hereof or otherwise, a credit balance exists in the Loan
Account, such credit balance shall not accrue interest in favor of Borrower, but
shall be disbursed to Borrower or otherwise at Borrower's direction in the
manner set forth in subsection 3.1.2, upon Borrower's request at any time, so
long as no Default or Event of Default then exists. Agent may at its option,
offset such credit balance against any of the Obligations upon and during the
continuance of an Event of Default.

         3.5. All Loans to Constitute One Obligation.

         The Loans and LC Guarantees shall constitute one general Obligation of
Borrower, and shall be secured by Agent's Lien upon all of the Collateral as
provided in Section 5 hereof.

         3.6. Loan Account.

         Agent shall enter all Loans as debits to a loan account (the "Loan
Account") and shall also record in the Loan Account all payments made by
Borrower on any Obligations and all proceeds of Collateral which are finally
paid to Agent, and may record therein, in accordance with customary accounting
practice, other debits and credits, including interest and all charges and
expenses properly chargeable to Borrower.

                                      -16-
<PAGE>
         3.7. Statements of Account.

         Agent will account to Borrower monthly with a statement of Loans,
charges and payments made pursuant to this Agreement during the immediately
preceding month, and such account rendered by Agent shall be deemed final,
binding and conclusive upon Borrower absent demonstrable error unless Agent is
notified by Borrower in writing to the contrary within 30 days of the date each
accounting is received by Borrower. Such notice shall only be deemed an
objection to those items specifically objected to therein.

         3.8. Increased Costs.

         If any law or any governmental or quasi-governmental rule, regulation,
policy, guideline or directive (whether or not having the force of law) adopted
or implemented after the date of this Agreement and having general applicability
to all banks or finance companies within the jurisdiction in which any Lender
operates (excluding, for the avoidance of doubt, the effect of and phasing in of
capital requirements or other regulations or guidelines passed prior to the date
of this Agreement), or any interpretation or application thereof by any
governmental authority charged with the interpretation or application thereof,
or the compliance of such Lender therewith, shall:

              (i) (1) subject such Lender to any tax with respect to this
         Agreement (other than (a) any tax based on or measured by net income or
         otherwise in the nature of a net income tax, including, without
         limitation, any franchise tax or any similar tax based on capital, net
         worth or comparable basis for measurement and (b) any tax collected by
         a withholding on payments and which neither is computed by reference to
         the net income of the payee nor is in the nature of an advance
         collection of a tax based on or measured by the net income of the
         payee) or (2) change the basis of taxation of payments to such Lender
         of principal, fees, interest or any other amount payable hereunder or
         under any Loan Documents (other than in respect of (a) any tax based on
         or measured by net income or otherwise in the nature of a net income
         tax, including, without limitation, any franchise tax or any similar
         tax based on capital, net worth or comparable basis for measurement and
         (b) any tax collected by a withholding on payments and which neither is
         computed by reference to the net income of the payee nor is in the
         nature of an advance collection of a tax based on or measured by the
         net income of the payee);

              (ii) impose, modify or hold applicable any reserve (except any
         reserve taken into account in the determination of the applicable
         LIBOR), special deposit, assessment or similar requirement against
         assets held by, or deposits in or for the account of, advances or loans
         by, or other credit extended by, any office of such Lender, including
         (without limitation) pursuant to Regulation D of the Board of Governors
         of the Federal Reserve System; or

              (iii) impose on such Lender or the London interbank market any
         other condition with respect to any Loan Document;

                                      -17-
<PAGE>
         and the result of any of the foregoing is to increase the cost to such
         Lender of making, renewing or maintaining Loans hereunder, or the
         result of any of the foregoing is to reduce the rate of return on such
         Lender's capital as a consequence of its obligations hereunder, in
         either case by or to an amount that such Lender deems to be material,
         or the result of any of the foregoing is to reduce the amount of any
         payment (whether of principal, interest or otherwise) in respect of any
         of the Loans, then, in any such case, Borrower shall pay such Lender,
         upon demand and certification not later than sixty (60) days following
         its receipt of notice of the imposition of such increased costs or such
         reduction, such additional amount as will compensate such Lender for
         such additional cost or such reduction, as the case may be, to the
         extent such Lender has not otherwise been compensated. An officer of
         the applicable Lender shall determine the amount of such additional
         cost or such reduction using reasonable averaging and attribution
         methods and shall certify the amount of such additional cost or such
         reduction to Borrower, which certification shall include a written
         explanation of such additional cost or such reduction to Borrower. Such
         certification shall be conclusive absent demonstrable error. If a
         Lender claims any additional cost or reduced amount pursuant to this
         Section 3.8, then such Lender shall use reasonable efforts (consistent
         with legal and regulatory restrictions) to designate a different
         lending office or to file any certificate or document reasonably
         requested by Borrower if the making of such designation or filing would
         avoid the need for, or reduce the amount of, any such additional cost
         or such reduction and would not, in the sole discretion of such Lender,
         be otherwise disadvantageous to such Lender.

         3.9. Basis for Determining Interest Rate Inadequate.

         In the event that Agent or any Lender shall have determined that:

                  (i) reasonable means do not exist for ascertaining the LIBOR
         for any Interest Period; or

                  (ii) Dollar deposits in the relevant amount and for the
         relevant maturity are not available in the London interbank market with
         respect to a proposed LIBOR Portion, or a proposed conversion of a Base
         Rate Portion into a LIBOR Portion; then

Agent or such Lender shall give Borrower prompt written, telephonic or
electronic notice of the determination of such effect. If such notice is given,
(i) any such requested LIBOR Portion shall be made as a Base Rate Portion,
unless Borrower shall notify Agent no later than 10:00 a.m. (Chicago, Illinois
time) three (3) Business Days prior to the date of such proposed borrowing that
the request for such borrowing shall be canceled or made as an unaffected type
of LIBOR Portion, and (ii) any Base Rate Portion which was to have been
converted to an affected type of LIBOR Portion shall be continued as or
converted into a Base Rate Portion, or, if Borrower shall notify Agent, no later
than 10:00 a.m. (Chicago, Illinois time) three (3) Business Days prior to the
proposed conversion, shall be maintained as an unaffected type of LIBOR Portion.

                                      -18-
<PAGE>
         3.10. Sharing of Payments, Etc.

         If any Lender shall obtain any payment (whether voluntary, involuntary,
through the exercise of any right of set-off, or otherwise) on account of any
Loan made by it in excess of its ratable share of payments on account of Loans
made by all Lenders, such Lender shall forthwith purchase from each other Lender
such participation in such Loan as shall be necessary to cause such purchasing
Lender to share the excess payment ratably with each other Lender; provided,
that if all or any portion of such excess payment is thereafter recovered from
such purchasing Lender, such purchase from each Lender shall be rescinded and
such Lender shall repay to the purchasing Lenders the purchase price to the
extent of such recovery, together with an amount equal to such Lender's ratable
share (according to the proportion of (i) the amount of such Lender's required
repayment to (ii) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect
of the total amount so recovered. Borrower agrees that any Lender so purchasing
a participation from another Lender pursuant to this Section 3.10 may, to the
fullest extent permitted by law, exercise all its rights of payment (including
the right of set-off) with respect to such participation as fully as if such
Lender were the direct creditor of Borrower in the amount of such participation.
Notwithstanding anything to the contrary contained herein, all purchases and
repayments to be made under this Section 3.10 shall be made through Agent.

         3.11. Estoppel Certificate.

         Within 20 days after written request therefor by Borrower from time to
time (but not more frequently than once per calendar quarter), Agent agrees to
deliver to Borrower a written estoppel certificate executed by Agent stating (i)
the then outstanding amount of the Obligations, (ii) the date to which interest
and principal, in respect of the Obligations has been paid and (iii) the last
day of the Term, which certificate shall be accompanied by copies of (a) all
written amendments and modifications of this Agreement then in existence and (b)
all written notices of the existence of an Event of Default received by Agent
from Borrower through such date and all written notices delivered by Agent to
Borrower through such date asserting the existence of an Event of Default.

                         SECTION 4. TERM AND TERMINATION

         4.1. Term of Agreement.

         Subject to the right of Lenders to cease making Loans to Borrower
during the continuance of any Default or Event of Default, this Agreement shall
be in effect through and including March 31, 2004 (the "Term"), unless
terminated as provided in Section 4.2 hereof.

         4.2. Termination.

         4.2.1. Termination by Lenders. Agent may, and at the direction of
     Majority Lenders shall, terminate this Agreement without notice upon or
     after the occurrence and during the continuance of an Event of Default.

                                      -19-
<PAGE>
         4.2.2. Termination by Borrower. Upon at least 90 days prior written
     notice to Agent and Lenders, Borrower may, at its option, terminate this
     Agreement; provided, however, no such termination shall be effective until
     Borrower has paid or collateralized to Agent's satisfaction all of the
     Obligations in immediately available funds, all Letters of Credit and LC
     Guaranties have expired, terminated or have been cash collateralized to
     Agent's satisfaction and Borrower has complied with Section 2.6 and
     subsection 3.2.5. Any notice of termination given by Borrower shall be
     irrevocable unless all Lenders otherwise agree in writing and no Lender
     shall have any obligation to make any Loans or issue or procure any Letters
     of Credit or LC Guaranties on or after the termination date stated in such
     notice. Borrower may elect to terminate this Agreement in its entirety
     only. No section of this Agreement or type of Loan available hereunder may
     be terminated singly.

         4.2.3. Effect of Termination. All of the Obligations shall be
     immediately due and payable upon the termination date stated in any notice
     of termination of this Agreement. All undertakings, agreements, covenants,
     warranties and representations of Borrower contained in the Loan Documents
     shall survive any such termination and Agent shall retain its Liens in the
     Collateral and Agent and each Lender shall retain all of its rights and
     remedies under the Loan Documents notwithstanding such termination until
     all Obligations have been discharged or paid, in full, in immediately
     available funds, including, without limitation, all Obligations under
     Section 2.6 and subsection 3.2.5 resulting from such termination.
     Notwithstanding the foregoing or the payment in full of the Obligations,
     Agent shall not be required to terminate its then-existing Liens in the
     Collateral (it being understood that Agent's Liens on the Tandem Mill
     Collateral shall be terminated in connection with a Permitted Tandem Mill
     Transaction), unless, with respect to any loss or damage Agent may incur as
     a result of dishonored checks or other items of payment received by Agent
     from Borrower or any Account Debtor and applied to the Obligations, Agent
     shall, at its option, (i) have received a written agreement satisfactory to
     Agent, executed by Borrower and by any Person whose loans or other advances
     to Borrower are used in whole or in part to satisfy the Obligations,
     indemnifying Agent and each Lender from any such loss or damage or (ii)
     have retained cash Collateral or other Collateral for such period of time
     as Agent, in its discretion, may deem necessary to protect Agent and each
     Lender from any such loss or damage.

                          SECTION 5. SECURITY INTERESTS

         5.1. Security Interest in Collateral.

         To secure the prompt payment and performance to Agent and each Lender
of all of the Obligations, Borrower hereby grants to Agent for the benefit of
itself and each Lender a continuing security interest in all of the following
Property and interests in Property of Borrower, whether now owned or existing or
hereafter created, acquired or arising and wheresoever located:

                                      -20-
<PAGE>
                  (i) Accounts, including Supporting Obligations pertaining to
         Accounts;

                  (ii) General Intangibles (to the extent related to any of the
         Accounts or the processing or collection thereof);

                  (iii) Inventory;

                  (iv) the Tandem Mill Collateral, whether now owned or existing
         or hereafter created, acquired or arising (whether or not later moved),
         and all accessories, additions, attachments, improvements,
         substitutions and replacements thereto and therefor;

                  (v) the Hot Mill Collateral, whether now owned or existing or
         hereafter created, acquired or arising (whether or not later moved),
         and all accessories, additions, attachments, improvements,
         substitutions and replacements thereto and therefor; and

                  (vi) the Tin Mill Collateral, whether now owned or existing or
         hereafter created, acquired or arising (whether or not later moved),
         and all accessories, additions, attachments, improvements,
         substitutions and replacements thereto and therefor;

together with all books, records, writings, data bases, information and other
similar property relating to, used or useful in connection with, or evidencing,
embodying, incorporating or referring to any of the foregoing, and all Proceeds,
products, rents, profits and returns of and from any of the foregoing.

Notwithstanding the foregoing, in no event shall Borrower be deemed to have
granted to Agent a Lien on or security interest in any of the Project Assets or
any Property arising from, or as a result of the disposition of, any of the
Project Assets.

         5.2. Intentionally Omitted.

         5.3. Lien Perfection; Further Assurances.

         Borrower shall execute such UCC-1 financing statements as are required
by the UCC and such other instruments, assignments or documents as are necessary
to perfect Agent's Lien upon any of the Collateral and shall take such other
action as may be required to perfect or to continue the perfection of Agent's
Lien upon the Collateral. Unless prohibited by applicable law, Borrower hereby
authorizes Agent to execute and file any such financing statement, including,
without limitation, financing statements that reflect the Collateral as being of
an equal or lesser scope, or with greater or lesser detail, than as set forth in
Section 5.1, on Borrower's behalf. Borrower also hereby ratifies its
authorization for Agent to have filed in any jurisdiction any like financing
statements or amendments thereto if filed prior to the date hereof. The parties
agree that a carbon, photographic or other reproduction of this Agreement shall
be sufficient as a financing statement and may be filed in any appropriate
office in lieu thereof. At

                                      -21-
<PAGE>
Agent's request, Borrower shall also promptly execute or cause to be executed
and shall deliver to Agent any and all documents, instruments and agreements
reasonably deemed necessary by Agent, to give effect to or carry out the terms
or intent of the Loan Documents.

         5.4. Lien on Realty.

         The due and punctual payment and performance of the Obligations shall
also be secured by the Lien created by the Mortgages upon the real Property
portions of the Tandem Mill Collateral, the Hot Mill Collateral and the Tin Mill
Collateral. Each Mortgage shall be executed by Borrower in favor of Agent. Each
Mortgage shall be duly recorded, at Borrower's expense, in each office where
such recording is required to constitute a fully perfected first Lien on the
real Property covered thereby. Borrower shall deliver to Agent, at Borrower's
expense, mortgagee title insurance policies (and in the case of the Mortgage
covering the real Property portion of the Tandem Mill Collateral, a date-down
endorsement to the existing title insurance policy), in each case issued by a
title insurance company satisfactory to Agent, which policies shall be in form
and substance satisfactory to Agent and shall insure a valid first Lien in favor
of Agent, for the benefit of itself and the Lenders, on the Property covered by
each Mortgage, subject only to those exceptions acceptable to Agent and its
counsel. Borrower shall deliver to Agent such other documents, including without
limitation as-built ALTA surveys of such real Property showing all improvements
in the property, and otherwise in form satisfactory to Agent, as Agent and its
counsel may reasonably request relating to the real Property subject to the
Mortgages; provided, that such surveys with respect to the real Property
portions of the Tin Mill Collateral and the Hot Mill Collateral need not be
delivered until May 31, 2002.

                      SECTION 6. COLLATERAL ADMINISTRATION

         6.1. General.

         6.1.1. Location of Collateral. All Collateral, other than Inventory in
     transit, will at all times be kept by Borrower and its Subsidiaries at one
     or more of the business locations set forth in Exhibit 6.1.1 hereto, as
     updated by Borrower providing prior written notice to Agent of any new
     location.

         6.1.2. Insurance of Collateral. Borrower shall maintain and pay for
     insurance upon all Collateral wherever located and with respect to the
     business of Borrower and each of its Subsidiaries, covering casualty,
     hazard, public liability, workers' compensation and such other risks in
     such amounts and with such insurance companies as are reasonably
     satisfactory to Agent. Borrower shall deliver certified copies of such
     policies to Agent as promptly as practicable, with satisfactory lender's
     loss payable endorsements, naming Agent as a loss payee, assignee or
     additional insured, as appropriate, as its interest may appear, and showing
     only such other loss payees, assignees and additional insureds as are
     satisfactory to Agent. Each policy of insurance or endorsement shall
     contain a clause requiring the insurer to give not less than 10 days' prior
     written notice to Agent in the event of cancellation of the policy for
     nonpayment of premium and not less than 30 days' prior written notice to
     Agent in the event of cancellation of the policy for any other reason
     whatsoever and a clause

                                      -22-
<PAGE>
     specifying that the interest of Agent shall not be impaired or
     invalidated by any act or neglect of Borrower, any of its Subsidiaries or
     the owner of the Property or by the occupation of the premises for purposes
     more hazardous than are permitted by said policy. Borrower agrees to
     deliver to Agent, promptly as rendered, true copies of all reports made in
     any reporting forms to insurance companies.

         Unless Borrower provides Agent with evidence of the insurance coverage
     required by this Agreement, Agent may purchase insurance at Borrower's
     expense to protect Agent's interests in the Properties of Borrower and its
     Subsidiaries. This insurance may, but need not, protect the interests of
     Borrower and its Subsidiaries. The coverage that Agent purchases may not
     pay any claim that Borrower or any Subsidiary makes or any claim that is
     made against Borrower or any such Subsidiary in connection with said
     Property. Borrower may later cancel any insurance purchased by Agent, but
     only after providing Agent with evidence that Borrower and its Subsidiaries
     have obtained insurance as required by this Agreement. If Agent purchases
     insurance, Borrower will be responsible for the costs of that insurance,
     including interest and any other charges Agent may impose in connection
     with the placement of insurance, until the effective date of the
     cancellation or expiration of the insurance. The costs of the insurance may
     be added to the Obligations. The costs of the insurance may be more than
     the cost of insurance that Borrower and its Subsidiaries may be able to
     obtain on their own.

         6.1.3. Protection of Collateral. Neither Agent nor any Lender shall be
     liable or responsible in any way for the safekeeping of any of the
     Collateral or for any loss or damage thereto (except for reasonable care in
     the custody thereof while any Collateral is in Agent's or any Lender's
     actual possession) or for any diminution in the value thereof, or for any
     act or default of any warehouseman, carrier, forwarding agency, or other
     person whomsoever, but the same shall be at Borrower's sole risk.

         6.2. Administration of Accounts.

         6.2.1. Records, Schedules and Assignments of Accounts. Borrower shall
     keep accurate and complete records of its Accounts and all payments and
     collections thereon and shall submit to Agent on such periodic basis as
     Agent shall request a sales and collections report for the preceding
     period, in form acceptable to Agent. Weekly, or more frequently as
     requested by Agent, from and after the date hereof, Borrower shall deliver
     to Agent a detailed aged trial balance of all of its Accounts, specifying
     the names, addresses, face values, dates of invoices and due dates for each
     Account Debtor obligated on an Account so listed ("Schedule of Accounts"),
     and upon Agent's request therefor, copies of proof of delivery and the
     original copy of all documents, including, without limitation, repayment
     histories and present status reports relating to the Accounts so scheduled
     and such other matters and information relating to the status of then
     existing Accounts as Agent shall request. In addition, if Accounts in an
     aggregate face amount in excess of $750,000 become ineligible because they
     fall within one of the specified categories of ineligibility set forth in
     the definition of Eligible Accounts or otherwise established by Agent as
     provided therein,

                                      -23-
<PAGE>
     Borrower shall notify Agent of such occurrence on the first Business
     Day following Borrower's knowledge of such occurrence and the Borrowing
     Base shall thereupon be adjusted to reflect such occurrence. If requested
     by Agent, Borrower shall execute and deliver to Agent formal written
     assignments of all of its Accounts weekly or daily, which shall include all
     Accounts that have been created since the date of the last assignment,
     together with copies of invoices or invoice registers related thereto.

         6.2.2. Discounts, Allowances, Disputes. If Borrower grants any
     discounts, allowances or credits that are not shown on the face of the
     invoice for the Account involved, Borrower shall report such discounts,
     allowances or credits, as the case may be, to Agent as part of the next
     required Schedule of Accounts. If any amounts due and owing in excess of
     $750,000 are in dispute between Borrower and any Account Debtor, Borrower
     shall provide Agent with written notice thereof at the time of submission
     of the next Schedule of Accounts, explaining in detail the reason for the
     dispute, all claims related thereto and the amount in controversy.

         6.2.3. Account Verification. Any of Agent's officers, employees or
     agents shall have the right, at any time or times hereafter, in the name of
     Agent, any designee of Agent or Borrower, to verify the validity, amount or
     any other matter relating to any Accounts by mail, telephone, electronic
     communication or otherwise. Borrower shall cooperate fully with Agent in an
     effort to facilitate and promptly conclude any such verification process.

         6.2.4. Maintenance of Dominion Account. Borrower shall maintain a
     Dominion Account or Accounts pursuant to lockbox and blocked account
     arrangements acceptable to Agent with such banks as may be selected by
     Borrower and be acceptable to Agent. As of the Original Closing Date and at
     all times thereafter, all of such lockbox and blocked account arrangements
     will be maintained with Bank. Borrower shall issue to any such banks an
     irrevocable letter of instruction directing such banks to deposit all
     payments or other remittances received in the lockbox and blocked accounts
     to the Dominion Account for application on account of the Obligations as
     provided in subsection 3.2.1. All funds deposited in any Dominion Account
     shall immediately become the funds of Agent, for the ratable benefit of
     Lenders (but only for purposes of application on account of the Obligations
     or to stand as cash Collateral for the Obligations, each as provided
     hereunder), and Borrower shall obtain the agreement by such banks in favor
     of Agent to waive any recoupment, setoff rights, and any security interest
     in, or against, the funds so deposited. Agent assumes no responsibility for
     such lockbox and blocked account blocked account arrangements, including,
     without limitation, any claim of accord and satisfaction or release with
     respect to deposits accepted by any bank thereunder.

         6.2.5. Collection of Accounts, Proceeds of Collateral. Borrower agrees
     that all invoices rendered and other requests made by Borrower for payment
     in respect of Accounts shall contain a written statement directing payment
     in respect of such Accounts to be paid to a lockbox established pursuant to
     subsection 6.2.4. To expedite collection, Borrower shall endeavor in the
     first instance to make collection

                                      -24-
<PAGE>
     of its Accounts for Agent. All remittances received by Borrower on
     account of Accounts, together with the proceeds of any other Collateral,
     shall be held as Agent's property, for its benefit and the benefit of
     Lenders, by Borrower as trustee of an express trust for Agent's benefit and
     Borrower shall immediately deposit same in kind in the Dominion Account.
     Agent retains the right at all times after the occurrence and during the
     continuance of a Default or an Event of Default to notify Account Debtors
     that Borrower's Accounts have been assigned to Agent and to collect
     Borrower's Accounts directly in its own name, or in the name of Agent's
     agent, and to charge the collection costs and expenses, including
     attorneys' fees, to Borrower.

         6.2.6. Taxes. If an Account includes a charge for any tax payable to
     any governmental taxing authority, Agent is authorized, in its sole
     discretion, to pay the amount thereof to the proper taxing authority for
     the account of Borrower and to charge Borrower therefor, except for taxes
     that (i) are being actively contested in good faith and by appropriate
     proceedings and with respect to which Borrower maintains reasonable
     reserves on its books therefor and (ii) would not reasonably be expected to
     result in any Lien other than a Permitted Lien. In no event shall Agent or
     any Lender be liable for any taxes to any governmental taxing authority
     that may be due by Borrower.

         6.3. Administration of Inventory.

         Borrower shall keep records of its Inventory which records shall be
complete and accurate and complete in all material respects. Borrower shall
furnish to Agent Inventory reports monthly (on or before the 15th day of the
following month), or more frequently as requested by Agent, which reports will
be in such other format and detail as Agent shall request and shall include a
current list of all locations of Borrower's Inventory; provided, that at all
times hereafter that Availability is less than $20,000,000, Borrower shall
furnish Inventory reports concurrently with the delivery of each Borrowing Base
Certificate described in subsection 8.1.4, or more frequently as requested by
Agent. Borrower shall conduct a physical inventory no less frequently than
annually and shall provide to Agent a report based on each such physical
inventory promptly thereafter, together with such supporting information as
Agent shall reasonably request.

         6.4. Records and Schedules of Equipment.

         Borrower shall keep records of its Equipment which shall be complete
and accurate in all material respects itemizing and describing the kind, type,
quality, quantity and book value of its Equipment and all dispositions made in
accordance with subsection 8.2.9 hereof, and Borrower shall, and shall cause
each of its Subsidiaries to, furnish Agent with a current schedule containing
the foregoing information on at least an annual basis and more often if
reasonably requested by Agent. Promptly after the request therefor by Agent,
Borrower shall deliver to Agent any and all evidence of ownership, if any, of
any of its Equipment.

                                      -25-
<PAGE>
         6.5. Payment of Charges.

         All amounts chargeable to Borrower under Section 6 hereof shall be
Obligations secured by all of the Collateral, shall be payable on demand and
shall bear interest from the date such advance was made until paid in full at
the rate applicable to Base Rate Portions from time to time.

                    SECTION 7. REPRESENTATIONS AND WARRANTIES

         7.1. General Representations and Warranties.

         To induce Agent and each Lender to enter into this Agreement and to
make advances hereunder, Borrower warrants, represents and covenants to Agent
and each Lender that:

         7.1.1. Qualification. Borrower and each of its Subsidiaries is a
     corporation, limited partnership or limited liability company duly
     organized, validly existing and in good standing under the laws of the
     jurisdiction of its incorporation or organization. Borrower and each of its
     Subsidiaries is duly qualified and is authorized to do business and is in
     good standing as a foreign limited liability company, limited partnership
     or corporation, as applicable, in each state or jurisdiction listed on
     Exhibit 7.1.1 hereto, as updated by Borrower providing prompt written
     notice to Agent of each new state or jurisdiction, and in all other states
     and jurisdictions in which the failure of Borrower or any of its
     Subsidiaries to be so qualified could reasonably be expected to have a
     Material Adverse Effect.

         7.1.2. Power and Authority. Borrower and each of its Subsidiaries is
     duly authorized and empowered to enter into, execute, deliver and perform
     this Agreement and each of the other Loan Documents to which it is a party.
     The execution, delivery and performance of this Agreement and each of the
     other Loan Documents have been duly authorized by all necessary corporate
     or other relevant action and do not and will not (i) require any consent or
     approval of the shareholders of Borrower or any of the shareholders,
     partners or members, as the case may be, of any Subsidiary of Borrower;
     (ii) contravene Borrower's or any of its Subsidiaries' charter, articles or
     certificate of incorporation, partnership agreement, certificate of
     formation, by-laws, limited liability agreement, operating agreement or
     other organizational documents (as the case may be); (iii) violate, or
     cause Borrower or any of its Subsidiaries to be in default under, any
     provision of any law, rule, regulation, order, writ, judgment, injunction,
     decree, determination or award in effect having applicability to Borrower
     or any of its Subsidiaries, the violation of which could reasonably be
     expected to have a Material Adverse Effect; (iv) result in a breach of or
     constitute a default under any indenture or loan or credit agreement or any
     other agreement, lease or instrument to which Borrower or any of its
     Subsidiaries is a party or by which it or its Properties may be bound or
     affected, the breach of or default under which could reasonably be expected
     to have a Material Adverse Effect; or (v) result in, or require, the
     creation or

                                      -26-
<PAGE>
     imposition of any Lien (other than Permitted Liens) upon or with
     respect to any of the Properties now owned or hereafter acquired by
     Borrower or any of its Subsidiaries.

         7.1.3. Legally Enforceable Agreement. This Agreement is, and each of
     the other Loan Documents when delivered under this Agreement will be, a
     legal, valid and binding obligation of Borrower and each of its
     Subsidiaries party thereto, enforceable against it in accordance with its
     respective terms.

         7.1.4. Capital Structure. Exhibit 7.1.4 hereto states (i) as of the
     Closing Date, the percentage of the Voting Stock of each of Borrower's
     Subsidiaries owned by Borrower, (ii) as of the Closing Date, the name of
     Borrower's and each of its Subsidiaries' corporate or joint venture
     relationships and the nature of the relationship, (iii) as of the Closing
     Date, the number, nature and holder of all outstanding Securities of each
     Subsidiary of Borrower and (iv) as of the most recent practicable date, the
     number of authorized and issued Securities of Borrower. Borrower has good
     title to all of the Securities it purports to own of each of such
     Subsidiaries, free and clear in each case of any Lien other than Permitted
     Liens. All of the Securities of the Borrower and each of its Subsidiaries
     have been duly issued and are fully paid and non-assessable, except for
     Borrower's Series C Preferred, which will be issued in connection with the
     Permitted Note Exchange Offer and will be fully paid and non-assessable
     when so issued. Except as set forth in the financial statements referred to
     in subsection 7.1.10, Borrower's reports and proxy statements filed
     pursuant to the Exchange Act, and the Registration Statement, as of the
     Closing Date, there are no outstanding options to purchase, or any rights
     or warrants to subscribe for, or any commitments or agreements to issue or
     sell any Securities or obligations convertible into, or any powers of
     attorney relating to any Securities of Borrower or any of its Subsidiaries.
     Except as set forth on Exhibit 7.1.4, as of the Closing Date,
     there are no outstanding agreements or instruments binding upon any of
     Borrower's or any of its Subsidiaries' partners, members or shareholders,
     as the case may be, relating to the ownership of its Securities and that
     have not been disclosed in filings of any such Person made under the
     Exchange Act or are otherwise known to Borrower.

         7.1.5. Names; Organization. Neither Borrower nor any of its
     Subsidiaries has been known as or has used any legal, fictitious or trade
     names except those listed on Exhibit 7.1.5 hereto. Except as set forth on
     Exhibit 7.1.5, neither Borrower nor any of its Subsidiaries has been the
     surviving entity of a merger or consolidation or has acquired all or
     substantially all of the assets of any Person. Each of Borrower's and each
     of its Subsidiaries' state(s) of incorporation or organization, Type of
     Organization and Organizational I.D. Number is set forth on Exhibit 7.1.5,
     as updated by Borrower providing prior written notice to Agent pursuant to
     subsection 8.2.18 of any change therein. The exact legal name of Borrower
     and each of its Subsidiaries is set forth on Exhibit 7.1.5, as updated by
     Borrower providing prior written notice to Agent pursuant to subsection
     8.2.18 of any change therein.

         7.1.6. Business Locations; Agent for Process. Each of Borrower's and
     each of its Subsidiary's principal executive office, location of books and
     records and other

                                      -27-
<PAGE>
     places of business are as listed on Exhibit 6.1.1 hereto as updated
     from time to time by Borrower in accordance with the provisions of
     subsection 6.1.1. During the preceding one-year period, neither Borrower
     nor any of its Subsidiaries has had an office, place of business or agent
     for service of process, other than as listed on Exhibit 6.1.1. All tangible
     Collateral is and will at all times be kept by Borrower and its
     Subsidiaries in accordance with subsection 6.1.1. Except as shown on
     Exhibit 6.1.1, as of the date hereof, no Inventory is stored with a bailee,
     distributor, warehouseman, processor or similar party, nor is any Inventory
     consigned to any Person.

         7.1.7. Title to Properties; Priority of Liens. Other than Property
     disposed of in compliance with subsection 8.2.9 or otherwise with the
     consent of Majority Lenders, Borrower and each of its Subsidiaries has good
     and marketable title to, or valid and subsisting leasehold interests in,
     all of its real Property, and good title to all of the Collateral and all
     of its other Property, in each case, free and clear of all Liens except
     Permitted Liens. The Liens granted to Agent under Section 5 hereof are
     first priority Liens, subject only to Permitted Liens.

         7.1.8. Accounts. Agent may rely, in determining which Accounts are
     Eligible Accounts, on all statements and representations made by Borrower
     with respect to any Account or Accounts. With respect to each of Borrower's
     Accounts, whether or not such Account is an Eligible Account, unless
     otherwise disclosed to Agent in writing:

                (i) It is genuine and in all respects what it purports to be,
         and it is not evidenced by a judgment;

                (ii) It arises out of a completed, bona fide sale and delivery
         of goods or rendition of services by Borrower, in the ordinary course
         of its business and in accordance with the terms and conditions of all
         purchase orders, contracts or other documents relating thereto and
         forming a part of the contract between Borrower and the Account Debtor;

                 (iii) It is for a liquidated amount maturing as stated in the
         duplicate invoice covering such sale or rendition of services, a copy
         of which has been furnished or is available to Agent;

                 (iv) To the best of Borrower's knowledge, there are no facts,
         events or occurrences which in any way impair the validity or
         enforceability of any Accounts or tend to reduce the amount payable
         thereunder from the face amount of the invoice and statements delivered
         or made available to Agent with respect thereto;

                 (v) To the best of Borrower's knowledge, the Account Debtor
         thereunder (1) had the capacity to contract at the time any contract or
         other document giving rise to the Account was executed and (2) such
         Account Debtor is Solvent; and

                                      -28-
<PAGE>
                  (vi) To the best of Borrower's knowledge, there are no
         proceedings or actions which are threatened or pending against the
         Account Debtor thereunder which could reasonably be expected to result
         in any material adverse change in such Account Debtor's financial
         condition or the collectibility of such Account.

         7.1.9. Equipment. The Equipment of Borrower and its Subsidiaries is in
     satisfactory operating condition and repair for the purposes it is to be
     used, and all necessary replacements of and repairs thereto, consistent
     with Borrower's established practices prior to the Original Closing Date,
     shall be made so that the operating efficiency thereof shall be maintained
     and preserved, reasonable wear and tear excepted.

         7.1.10. Financial Statements; Fiscal Year. The audited Consolidated
     balance sheets of Borrower and its Subsidiaries (including the accounts of
     all Subsidiaries of Borrower for the respective periods during which a
     Subsidiary relationship existed) as of December 31, 2001, and the related
     statements of income, changes in shareholder's equity, and changes in
     financial position for the periods ended on such dates, have been prepared
     in accordance with GAAP (subject, in the case of unaudited financial
     statements, to year-end adjustments, the absence of required footnotes and
     presentation of Subsidiary interests), and present fairly in all material
     respects the financial positions of Borrower and such Persons, taken as a
     whole, at such dates and the results of Borrower's and such Persons'
     operations, taken as a whole, for such periods. As of the Closing Date,
     since December 31, 2001, there has been no material adverse change in the
     financial position of Borrower and such other Persons, taken as a whole, as
     reflected in the Consolidated balance sheet as of such date. As of the
     Closing Date, the fiscal year of Borrower and each of its Subsidiaries ends
     on December 31st of each year.

         7.1.11. Full Disclosure. The financial statements referred to in
     subsection 7.1.10 hereof do not, nor does this Agreement or any other
     written statement of Borrower to Agent or any Lender contain, as of the
     respective date any such statement was given or made, any untrue statement
     of a material fact or omit a material fact necessary to make the statements
     contained therein or herein not misleading. There is no fact which Borrower
     has failed to disclose to Agent or any Lender in writing which could
     reasonably be expected to have a Material Adverse Effect.

         7.1.12. Solvent Financial Condition. As of the Closing Date, Borrower
     and each of its Subsidiaries is Solvent. As of the Effective Date, Borrower
     and each of its Subsidiaries will be Solvent.

         7.1.13. Surety Obligations. Except as set forth on Exhibit 7.1.13, as
     of the Closing Date, neither Borrower nor any of its Subsidiaries is
     obligated as surety or indemnitor under any surety or similar bond or other
     contract or has issued or entered

                                      -29-
<PAGE>
     into any agreement to assure payment, performance or completion of
     performance of any undertaking or obligation of any Person.

         7.1.14. Taxes. Borrower's federal tax identification number is
     06-1075442. The federal tax identification number of each Subsidiary of
     Borrower is shown on Exhibit 7.1.14 hereto. Borrower and each of its
     Subsidiaries has filed all federal, state and local tax returns and other
     reports relating to taxes it is required by law to file, and has paid, or
     made provision for the payment of, all taxes, assessments, fees, levies and
     other governmental charges upon it, its income and Properties as and when
     such taxes, assessments, fees, levies and charges are due and payable,
     unless and to the extent any thereof are being actively contested in good
     faith and by appropriate proceedings and Borrower and each of its
     Subsidiaries maintains reasonable reserves on its books therefor.

         7.1.15. Subsidiaries. As of the Closing Date, none of Borrower's
     Subsidiaries is a Material Subsidiary or has material liabilities,
     contingent liabilities or obligations.

         7.1.16. Patents, Trademarks, Copyrights and Licenses. Borrower and each
     of its Subsidiaries owns, possesses or licenses or has the right to use all
     the patents, trademarks, service marks, trade names, copyrights, licenses
     and other Intellectual Property reasonably necessary for the conduct of its
     business, without any known conflict with the rights of others, except for
     such conflicts as could not reasonably be expected to have a Material
     Adverse Effect. All such patents, trademarks, service marks, tradenames,
     copyrights, licenses, and other similar rights are listed on Exhibit 7.1.16
     hereto, as updated by Borrower providing written notice to Agent of the
     change therein at the end of each fiscal year hereafter. No claim has been
     asserted to Borrower or any of its Subsidiaries which is currently pending
     that their use of their Intellectual Property or the conduct of their
     business does or may infringe upon the Intellectual Property rights of any
     third party, except for such claims which, if adversely determined, could
     not reasonably be expected to have a Material Adverse Effect. To the
     knowledge of Borrower and except as set forth on Exhibit 7.1.16 hereto, as
     of the Closing Date, no Person is engaging in any activity that infringes
     in any material respect upon Borrower's or any of its Subsidiaries'
     material Intellectual Property. Except as listed on Exhibit 7.1.16 and
     except as could not reasonably be expected to have a Material Adverse
     Effect, (i) neither Borrower nor any of its Subsidiaries is in breach of,
     or default under, any term of any license or sublicense with respect to any
     of its Intellectual Property and (ii) to the knowledge of Borrower, no
     other party to such license or sublicense is in breach thereof or default
     thereunder, and such license is valid and enforceable. As of the Closing
     Date, there is no Intellectual Property that is material to the business of
     Borrower or any of its Subsidiaries.

         7.1.17. Governmental Consents. Borrower and each of its Subsidiaries
     has, and is in good standing with respect to, all governmental consents,
     approvals, licenses, authorizations, permits, certificates, inspections and
     franchises necessary to

                                      -30-
<PAGE>

      continue to conduct its business as heretofore or proposed to be conducted
      by it and to own or lease and operate its Properties as now owned or
      leased by it, except where the failure to possess or so maintain such
      rights could not reasonably be expected to have a Material Adverse Effect.

            7.1.18. Compliance with Laws. Borrower and each of its Subsidiaries
      has duly complied, and its Properties, business operations and leaseholds
      are in compliance with, the provisions of all federal, state and local
      laws, rules and regulations applicable to Borrower or such Subsidiary, as
      applicable, its Properties or the conduct of its business, except for such
      non-compliance as could not reasonably be expected to have a Material
      Adverse Effect, and there have been no citations, notices or orders of
      noncompliance issued to Borrower or any of its Subsidiaries under any such
      law, rule or regulation, except where such noncompliance could not
      reasonably be expected to have a Material Adverse Effect. Borrower and
      each of its Subsidiaries has established and maintains an adequate
      monitoring system to insure that it remains in compliance in all material
      respects with all federal, state and local rules, laws and regulations
      applicable to it. No Inventory has been produced in violation of the Fair
      Labor Standards Act (29 U.S.C. Section 201 et seq.), as amended.

            7.1.19. Restrictions. Neither Borrower nor any of its Subsidiaries
      is a party or subject to any contract or agreement which restricts its
      right or ability to incur Indebtedness, other than as set forth on Exhibit
      7.1.19 hereto, other than the agreements, instruments and documents
      evidencing the Permitted Note Exchange Offer and other than agreements
      that will be terminated contemporaneously with the effectiveness of this
      Agreement, none of which prohibit the execution of or compliance with this
      Agreement or the other Loan Documents by Borrower or any of its
      Subsidiaries, as applicable.

            7.1.20. Litigation. Except as set forth on Exhibit 7.1.20 hereto,
      there are no actions, suits, proceedings or investigations pending, or to
      the knowledge of Borrower, threatened, against or affecting Borrower or
      any of its Subsidiaries, or the business, operations, Properties,
      prospects, profits or condition of Borrower or any of its Subsidiaries
      which, singly or in the aggregate, could reasonably be expected to have a
      Material Adverse Effect. Neither Borrower nor any of its Subsidiaries is
      in default with respect to any order, writ, injunction, judgment, decree
      or rule of any court, governmental authority or arbitration board or
      tribunal, which, singly or in the aggregate, could reasonably be expected
      to have a Material Adverse Effect.

            7.1.21. No Defaults. No event has occurred and no condition exists
      which would, upon the Effective Date, constitute a Default or an Event of
      Default. Neither Borrower nor any of its Subsidiaries is in default in
      (and no event has occurred and no condition exists which constitutes, or
      which the passage of time or the giving of notice or both would
      constitute, a default in) the payment of any Indebtedness to any Person
      for Money Borrowed in excess of $5,000,000.

                                      -31-
<PAGE>
            7.1.22. Leases. Exhibit 7.1.22 hereto is a complete listing of all
      capitalized and operating personal property leases of Borrower and its
      Subsidiaries and all real property leases of Borrower and its Subsidiaries
      in each case involving annual payments in excess of $1,000,000, as updated
      by Borrower providing prompt written notice to Agent of each new such
      lease. Borrower and each of its Subsidiaries is in compliance with all of
      the terms of each of its respective capitalized and operating leases,
      except where the failure to so comply could not reasonably be expected to
      have a Material Adverse Effect.

            7.1.23. Pension Plans. Except as disclosed on Exhibit 7.1.23 hereto,
      as updated by Borrower providing prompt written notice to Agent of each
      new Plan, neither Borrower nor any of its Subsidiaries has any Plan.
      Borrower and each of its Subsidiaries is in compliance with the
      requirements of ERISA and the regulations promulgated thereunder with
      respect to each Plan, except where the failure to so comply could not
      reasonably be expected to have a Material Adverse Effect. No fact or
      situation that could reasonably be expected to result in a material
      adverse change in the financial condition of Borrower and its Subsidiaries
      exists in connection with any Plan. Neither Borrower nor any of its
      Subsidiaries has participated in or has any withdrawal liability in
      connection with a Multiemployer Plan.

            7.1.24. Trade Relations. There exists no actual or, to Borrower's
      knowledge, threatened termination, cancellation or limitation of, or any
      modification or change in, the business relationship between Borrower or
      any of its Subsidiaries and any customer or any group of customers whose
      purchases individually or in the aggregate are material to the business of
      Borrower and its Subsidiaries, or with any material supplier, except in
      each case, where the same could not reasonably be expected to have a
      Material Adverse Effect, and there exists no present condition or state of
      facts or circumstances, to Borrower's knowledge, which would prevent
      Borrower or any of its Subsidiaries from conducting such business after
      the consummation of the transactions contemplated by this Agreement in
      substantially the same manner in which it has heretofore been conducted.

            7.1.25. Labor Relations. Except as described on Exhibit 7.1.25
      hereto, (a) as of the Closing Date, there is no collective bargaining
      agreement covering employees of Borrower or any of its Subsidiaries, (b)
      as of the Closing Date, no such collective bargaining agreement or other
      labor contract is scheduled to expire during the term of this Agreement,
      (c) there are no material grievances, disputes or controversies with any
      union or any other organization of Borrower's or any of its Subsidiaries'
      employees, or any pending or, to the best of Borrower's knowledge,
      threatened strikes, work stoppages, in each case except those that could
      not reasonably be expected to have a Material Adverse Effect and (d) as of
      the Closing Date, substantially all of the eligible employees of Borrower
      and each of its Subsidiaries are members of the collective bargaining
      units listed on Exhibit 7.1.25 hereto.

            7.1.26. Third Party Property. Exhibit 7.1.26, as updated by Borrower
      providing prompt written notice thereof to Agent, is a complete listing of
      all Persons

                                      -32-
<PAGE>
      that are not Affiliates of Borrower and that have Property from time to
      time located on Borrower's or any Subsidiary's premises for storage and/or
      processing (including pursuant to a lease or supply arrangement between
      such Person and Borrower or any Subsidiary), and includes a description of
      the nature of the relationship between Borrower or its Subsidiary and such
      Person with respect to such Property and a listing of any existing
      agreements relevant thereto. If requested by Agent, in its reasonable
      judgment, each such Person has delivered to Agent a letter confirming the
      nature of such relationship with Borrower. All such Property is readily
      identifiable as Property of such Person and not of Borrower or its
      Subsidiary, and is physically segregated from the Property of Borrower or
      its Subsidiary located on the Premises.

            7.1.27. Stock Plans. If all participants in the Stock Plans were
      assumed to have put rights with respect to all shares of Borrower's
      Securities allocated to their accounts under the Stock Plans and to have
      exercised those put rights as of October 23, 2001, Borrower's aggregate
      obligations in respect of such put rights would be equal to $4,370,000,
      all of which amount would be required to be paid promptly. The preceding
      sentence also assumes that each share of Borrower's Convertible Voting
      Preferred Stock, Series A, is valued at the same price as a share of
      Borrower's Common Stock and that all shares are valued at the closing
      price for such Common Stock on the above-referenced date.

            7.1.28. Joint Venture Liabilities. Neither Borrower nor any of its
      Subsidiaries has any obligation or commitment to make any loans, advances
      or capital contributions in connection with any joint venture arrangement
      to which Borrower or such Subsidiary is a party.

            7.1.29. Project Assets. The Project Assets are and will remain
      located physically separate from the Tandem Mill Collateral, the Tin Mill
      Collateral and the Hot Mill Collateral, except for certain effluent
      collection and piping systems connected to the real Property improvements
      included in the Hot Mill Collateral. Borrower has an effective right
      pursuant to an existing easement to make use of such connected piping
      systems, as well as the balance of the Project Assets, for the disposal of
      effluents from all of its facilities.

            7.2.  Continuous Nature of Representations and Warranties.

            Each representation and warranty contained in this Agreement and the
other Loan Documents shall be continuous in nature and shall remain accurate,
complete and not misleading at all times during the term of this Agreement,
except where any such representation or warranty is given as of a specific date
and except for changes in the nature of Borrower's or one of Borrower's
Subsidiary's business or operations that would render the information in any
exhibit attached hereto or to any other Loan Document either inaccurate,
incomplete or misleading, so long as Majority Lenders have consented to such
changes or such changes are expressly permitted by this Agreement. Without
limiting the generality of the foregoing, each Loan request made or deemed made
pursuant to subsection 3.1.1 hereof shall constitute Borrower's reaffirmation,
as of the date of each such loan request, of each representation,

                                      -33-
<PAGE>
warranty or other statement made or furnished to Agent or any Lender by or on
behalf of Borrower, any Subsidiary of Borrower, or any Guarantor in this
Agreement, any of the other Loan Documents, or any instrument, certificate or
financial statement furnished in compliance with or in reference thereto.

            7.3.  Survival of Representations and Warranties.

            All representations and warranties of Borrower contained in this
Agreement or any of the other Loan Documents shall survive the execution,
delivery and acceptance thereof by Agent and each Lender and the parties thereto
and the closing of the transactions described therein or related thereto.

                  SECTION 8. COVENANTS AND CONTINUING AGREEMENTS

            8.1. Affirmative Covenants.

            During the Term, and thereafter for so long as there are any
Obligations outstanding, Borrower covenants that, unless otherwise consented to
by Majority Lenders, in writing, it shall:

            8.1.1. Visits and Inspections; Lender Meeting. Permit (i)
      representatives of Agent, and during the continuation of any Default or
      Event of Default any Lender, from time to time, as often as may be
      reasonably requested, but only during normal business hours, to visit and
      inspect the Properties of Borrower and each of its Subsidiaries, inspect,
      audit and make extracts from its books and records, and discuss with its
      officers, its employees and its independent accountants, Borrower's and
      each of its Subsidiaries' business, assets, liabilities, financial
      condition, business prospects and results of operations and (ii)
      appraisers engaged pursuant to Section 2.10 (whether or not personnel of
      Agent), from time to time, as often as may be reasonably requested, but
      only during normal business hours, to visit and inspect the Properties of
      Borrower and each of its Subsidiaries for the purpose of completing
      appraisals pursuant to Section 2.10. Agent, if no Default or Event of
      Default then exists, shall give Borrower reasonable prior notice of any
      such inspection, audit or appraisal visit. Without limiting the foregoing,
      Borrower will participate and will cause its key management personnel to
      participate in periodic meetings with Agent and Lenders, which meetings
      shall be held at such times and such places as may be reasonably requested
      by Agent.

            8.1.2. Notices. Promptly notify Agent in writing of the occurrence
      of any event or the existence of any fact which renders any representation
      or warranty in this Agreement or any of the other Loan Documents
      inaccurate, incomplete or misleading in any material respect as of the
      date made or remade. In addition, Borrower agrees to provide Agent with
      prompt written notice of any change in the information disclosed in any
      Exhibit hereto, in each case after giving effect to the materiality limits
      and Material Adverse Effect qualifications contained therein.

                                      -34-
<PAGE>
            8.1.3. Financial Statements. Keep, and cause each of its
      Subsidiaries to keep, adequate records and books of account with respect
      to its business activities in which proper entries are made in accordance
      with customary accounting practices reflecting all its financial
      transactions; and cause to be prepared and furnished to Agent and each
      Lender, the following, all to be prepared in accordance with GAAP applied
      on a consistent basis, unless Borrower's certified public accountants
      concur in any change therein and such change is disclosed to Agent and is
      consistent with GAAP:

                  (i) not later than 90 days after the close of each fiscal year
            of Borrower, unqualified (except for a qualification for a change in
            accounting principles with which the accountant concurs and except
            for, in the case of the financial statements for the 2001 Fiscal
            Year only, the qualifications contained in such financial
            statements, as filed by Borrower with the Securities and Exchange
            Commission in connection with the Permitted Note Exchange Offer)
            audited financial statements of Borrower and its Subsidiaries as of
            the end of such year, on a Consolidated basis, certified by a firm
            of independent certified public accountants of recognized standing
            selected by Borrower but acceptable to Agent and, within a
            reasonable time thereafter a copy of any management letter issued in
            connection therewith;

                  (ii) not later than 30 days after the end of each month
            hereafter, including the last month of Borrower's fiscal year,
            unaudited interim financial statements of Borrower and its
            Subsidiaries as of the end of such month and of the portion of the
            fiscal year then elapsed, on a Consolidated basis, certified by the
            principal financial officer of Borrower as prepared in accordance
            with GAAP and fairly presenting in all material respects the
            financial position and results of operations of Borrower and its
            Subsidiaries for such month and period subject only to changes from
            audit and year-end adjustments and except that such statements need
            not contain notes;

                  (iii) together with each delivery of financial statements
            pursuant to paragraphs (i) and (ii) (but solely for financial
            statements delivered as of the end of a fiscal quarter) of this
            subsection 8.1.3, a management report (1) setting forth in
            comparative form the corresponding figures for the corresponding
            periods of the previous fiscal year and the corresponding figures
            from the most recent Projections for the current fiscal year
            delivered pursuant to subsection 8.1.7 and (2) identifying the
            reasons for any significant variations. The information above shall
            be presented in reasonable detail and shall be certified by the
            chief financial officer of Borrower to the effect that such
            information fairly presents in all material respects the results of
            operation and financial condition of Borrower and its Subsidiaries
            as at the dates and for the periods indicated;

                  (iv) promptly after the sending or filing thereof, as the case
            may be, copies of any proxy statements, financial statements or
            reports which

                                      -35-
<PAGE>
            Borrower has made available to its Securities holders and copies of
            any regular, periodic and special reports or registration statements
            which, Borrower or any of its Subsidiaries files with the Securities
            and Exchange Commission or any governmental authority which may be
            substituted therefor, or any national securities exchange;

                  (v) upon request of Agent, copies of any annual report to be
            filed in accordance with ERISA in connection with each Plan; and

                  (vi) such other data and information (financial and otherwise)
            as Agent or any Lender, from time to time, may reasonably request,
            bearing upon or related to the Collateral or Borrower's or any of
            its Subsidiaries' financial condition or results of operations.

                  Concurrently with the delivery of the financial statements
      described in paragraph (i) of this subsection 8.1.3, Borrower shall
      forward to Agent a copy of the accountants' letter to Borrower's
      management that is prepared in connection with such financial statements.
      Concurrently with the delivery of the financial statements described in
      paragraph (i) and paragraph (ii) (but solely for the last month of each
      fiscal quarter of Borrower) of this subsection 8.1.3, or more frequently
      if reasonably requested by Agent, Borrower shall cause to be prepared and
      furnished to Agent a Compliance Certificate in the form of Exhibit 8.1.3
      hereto executed by the Chief Financial Officer of Borrower (a "Compliance
      Certificate").

            8.1.4. Borrowing Base Certificates. On or before the third (3rd)
      Business Day of each week from and after the date hereof, or more
      frequently as requested by Agent, Borrower shall deliver to Agent, in form
      acceptable to Agent, a Borrowing Base Certificate as of the last day of
      the immediately preceding week, with such supporting materials as Agent
      shall reasonably request.

            8.1.5. Landlord, Processor and Storage Agreements. Provide Agent
      with copies of all agreements between Borrower or any of its Subsidiaries
      and (i) any landlord, processor, distributor, warehouseman or consignee
      which owns any premises at which any Collateral may, from time to time, be
      kept and (ii) any Person not an Affiliate of Borrower that has any
      Property located on the premises of Borrower or any Subsidiary, whether
      for storage, processing or otherwise.

            8.1.6. Deposit Accounts. For each deposit account that Borrower at
      any time opens or maintains, Borrower shall, pursuant to an agreement in
      form and substance reasonably satisfactory to Agent, cause the depository
      bank to agree to comply at any time with instructions from Agent to such
      depository bank directing the disposition of funds from time to time
      credited to such deposit account, without further consent of Borrower.

            8.1.7. Projections. No later than 30 days prior to the end of each
      fiscal year of Borrower, deliver to Agent and each Lender, in preliminary
      form, Projections of

                                      -36-
<PAGE>
      Borrower and each of its Subsidiaries for the forthcoming fiscal year,
      month by month, and through the end of the Term on an annual basis, said
      Projections to be delivered in final form within 45 days after the end of
      such fiscal year.

            8.1.8. Material Subsidiaries. Cause each Material Subsidiary of
      Borrower (other than FW Holdings, Inc.), whether now or hereafter in
      existence, promptly upon Agent's request therefor, to execute and deliver
      to Lender a Guaranty Agreement and a security agreement pursuant to which
      such Material Subsidiary guaranties the payment of all Obligations and
      grants to Agent a first priority Lien (subject only to Permitted Liens) on
      all of its Properties of the types described in subsection 5.1.

            8.1.9. Stock Plans. Employ a qualified valuation firm of recognized
      standing to make each valuation of Borrower's Securities subject to the
      Stock Plans that is required or otherwise made pursuant to the terms of
      the Stock Plans.

            8.1.10. Intentionally Omitted.

            8.1.11. Union Contracts and Labor Practices. As soon as available
      and in any event, within 180 days of the Original Closing Date, provide
      satisfactory evidence to Agent and Lenders that, within 180 days of the
      Original Closing Date, Borrower has actually achieved the labor related
      savings reflected in Borrower's Projections delivered prior to the
      Original Closing Date, as a result of the implementation of the matters
      described in Section 9.7 of the Original Loan Agreement.

            8.2.  Negative Covenants.

            During the Term, and thereafter for so long as there are any
Obligations outstanding, Borrower covenants that, unless otherwise consented to
by Majority Lenders (or by all Lenders if so specified), in writing, it shall
not:

            8.2.1. Mergers; Consolidations; Acquisitions. Merge or consolidate,
      or permit any Subsidiary of Borrower to merge or consolidate, with any
      Person, other than mergers between Borrower and any of its wholly-owned
      Subsidiaries in which Borrower is the surviving entity; nor acquire, nor
      permit any of its Subsidiaries to acquire, all or any substantial part of
      the Properties of any Person, except for (i) acquisitions of assets
      consisting of fixed assets or real property that constitute Capital
      Expenditures permitted under subsection 8.2.8, (ii) any Permitted
      Acquisition to which all Lenders have consented and (iii) any other
      acquisition to which Majority Lenders have consented.

            8.2.2. Loans. Make, or permit any Subsidiary of Borrower to make,
      any loans or other advances of money to any Person, other than (i) for
      salary, travel advances, advances against commissions and other similar
      advances to employees in the ordinary course of business, (ii) extensions
      of trade credit in the ordinary course of business, (iii) deposits with
      financial institutions permitted under this Agreement,

                                      -37-
<PAGE>
      (iv) prepaid expenses and (v) loans by any Subsidiary of Borrower to
      Borrower or to another Subsidiary of Borrower.

            8.2.3. Total Indebtedness. Create, incur, assume, or suffer to
      exist, or permit any Subsidiary of Borrower to create, incur or suffer to
      exist, any Indebtedness for Money Borrowed, except:

                  (i) Obligations owing to Agent or any Lender under, or arising
            from, this Agreement or any of the other Loan Documents;

                  (ii) Indebtedness under the Indentures (and all related
            agreements, instruments and documents) and the City Loan Agreement
            (and all related agreements, instruments and documents), in each
            case to the extent outstanding on the Effective Date after
            completion of the Permitted Note Exchange Offer;

                  (iii) after the completion of the Permitted Note Exchange
            Offer, (a) Indebtedness under the Exchange Instruments (and all
            related agreements, instruments and documents) and (b) Indebtedness
            in respect of the Series C Preferred;

                  (iv) Subordinated Debt listed on Exhibit 8.2.3 or otherwise
            approved by Majority Lenders;

                  (v) other Indebtedness listed on Exhibit 8.2.3;

                  (vi) Derivative Obligations deemed acceptable by Majority
            Lenders;

                  (vii) Permitted Purchase Money Indebtedness;

                  (viii) contingent liabilities (including any relating
            reserves) arising from endorsements of checks and other negotiable
            instruments for deposit or collection in the ordinary course of
            business;

                  (ix) Guaranties of any Indebtedness permitted hereunder;

                  (x) Capitalized Lease Obligations incurred in connection with
            a Permitted GO Transaction and/or a Permitted RD Transaction;

                  (xi)  Indebtedness incurred in connection with a Permitted
            Tandem Mill Transaction;

                  (xii) Indebtedness permitted pursuant to subsection 8.2.2(v);

                  (xiii) Indebtedness in respect of financed insurance premiums;

                                      -38-
<PAGE>
                  (xiv) Indebtedness not included in paragraphs (i) through
            (xiii) above which does not exceed at any time, in the aggregate,
            the sum of $5,000,000; and

                  (xv) refinancings of any Indebtedness for Money Borrowed and
            permitted under clause (iv), (v), (vii) (ix), (x) or (xi) above,
            provided that (a) such refinancing Indebtedness has a maximum
            principal amount not in excess of the sum of the principal amount
            of, and accrued interest in respect of, the Indebtedness being
            repaid at the time of repayment, plus reasonable direct expenses of
            such refinancing, (b) the refinancing Indebtedness is secured only
            by Liens on assets that secured the Indebtedness being repaid, (c)
            the average weighted life to maturity of the refinancing
            Indebtedness is not shorter than that of the Indebtedness be repaid,
            (d) the refinancing Indebtedness has terms that are not materially
            more restrictive on Borrower and its Subsidiaries than the
            Indebtedness being repaid and (e) refinancing Indebtedness incurred
            by any Subsidiary of Borrower is not used to repay Indebtedness of
            Borrower or another Subsidiary of Borrower.

            8.2.4. Affiliate Transactions. Enter into, or be a party to, or
      permit any Subsidiary of Borrower to enter into or be a party to, any
      transaction with any Affiliate of Borrower, including without limitation
      any management, consulting or similar fees, except (i) in the ordinary
      course of and pursuant to the reasonable requirements of Borrower's or
      such Subsidiary's business and upon fair and reasonable terms which are
      fully disclosed to Agent and are no less favorable to Borrower than would
      be obtained in a comparable arms-length transaction with a Person not an
      Affiliate, (ii) transactions involving Borrower, fiduciaries of and
      participants in, the Stock Plans made in compliance with applicable law
      and the terms of the Stock Plans, (iii) as set forth on Exhibit 8.2.4
      hereto and (iv) as otherwise permitted under this Agreement.

            8.2.5. Limitation on Liens. Create or suffer to exist, or permit any
      Subsidiary of Borrower to create or suffer to exist, any Lien upon any of
      its Property, whether now owned or hereafter acquired, except:

                  (i) Liens at any time granted in favor of Agent for the
            benefit of Lenders;

                  (ii) Liens for taxes, assessments or governmental charges not
            yet due, or being contested in the manner described in subsection
            7.1.14 hereto, but only if in Agent's judgment such Lien would not
            reasonably be expected to adversely effect Agent's rights or the
            priority of Agent's lien on any Collateral;

                  (iii) Liens arising in the ordinary course of the business of
            Borrower or any of its Subsidiaries by operation of law or
            regulation, but only if payment in respect of any such Lien is not
            at the time required and such Liens do not, in the aggregate,
            materially detract from the value of the Property of

                                      -39-
<PAGE>
            Borrower and its Subsidiaries, taken as a whole, or materially
            impair the use thereof in the operation of the business of Borrower
            and its Subsidiaries;

                  (iv) Purchase Money Liens securing Permitted Purchase Money
            Indebtedness;

                  (v) such other Liens as appear on Exhibit 8.2.5 hereto;

                  (vi) Liens incurred or deposits made in the ordinary course of
            business of Borrower or any of its Subsidiaries in connection with
            (1) worker's compensation, social security, unemployment insurance
            and other similar laws and rules or (2) sales contracts, leases,
            statutory obligations, work in progress advances and other similar
            obligations not incurred in connection with the borrowing of money
            or the payment of the deferred purchase price of Property;

                  (vii) reservations, covenants, zoning and other land use
            regulations, title exceptions or encumbrances granted in the
            ordinary course of business, affecting real Property owned or leased
            by Borrower or any of its Subsidiaries; provided that such Liens do
            not in the aggregate materially interfere with the use of such
            Property in the ordinary course of Borrower's or such Subsidiary's
            business;

                  (viii) Liens arising from judgments or similar awards that do
            not give rise to an Event of Default under subsection 10.1.15;

                  (ix) Liens on the Tandem Mill Collateral granted to secure
            Indebtedness arising in connection with a Permitted Tandem Mill
            Transaction;

                  (x) Liens on the GO Facility and the Transportation Equipment
            granted to secure Indebtedness arising in connection with a
            Permitted GO Transaction;

                  (xi) Liens on the RD Facility and the Transportation Equipment
            granted to secure Indebtedness arising in connection with a
            Permitted RD Transaction;

                  (xii) Liens on the Tandem Mill Collateral, the Tin Mill
            Collateral and the Hot Mill Collateral, any Pledged Accounts and any
            other "Collateral" (as defined in the Exchange Intercreditor
            Agreement) securing the Indebtedness under the Exchange Instruments,
            which Liens are junior to the Liens on such Collateral securing the
            Obligations, in accordance with the terms of the Exchange
            Intercreditor Agreement;

                  (xiii) Liens on Property securing up to $5,000,000 in the
            aggregate of Indebtedness permitted under subsection 8.2.3, so long
            as such Liens relate to Property other than the Collateral; and

                                      -40-
<PAGE>
                  (xiv) such other Liens as Lenders may hereafter approve in
            writing.

            8.2.6. Payments and Amendments of Certain Instruments.

                  (i) make or permit any Subsidiary of Borrower to make any
            payment of any part or all of any Subordinated Debt or take any
            other action or omit to take any other action in respect of any
            Subordinated Debt, except in accordance with the subordination
            agreement relative thereto or the subordination provisions thereof;

                  (ii)  amend or modify any agreement, instrument or document
            evidencing or relating to any Subordinated Debt;

                  (iii) except in connection with amendments described in the
            Registration Statement, which amendments are to become effective on
            the Effective Date, amend or modify any agreement, instrument or
            document evidencing or relating to the Indebtedness under the
            Indentures or the City Loan Agreement, including without limitation
            by means of a consent solicitation or an exchange offer;

                  (iv) after consummation of the Permitted Note Exchange Offer,
            (a) amend or modify any agreement, instrument or document
            evidencing, securing or relating to the Indebtedness under the
            Exchange Indentures, including without limitation the Junior
            Intercreditor Agreement and the Junior Security Documents; or (b)
            prepay all or any portion of the Indebtedness under the Exchange
            Instruments at any time, including (I) any optional prepayment,
            purchase or redemption, (II) any prepayment, purchase or redemption
            upon an Asset Disposition or other sale, transfer, lease or other
            disposition of Property, including without limitation a sale or
            leaseback transaction or an insured loss, or (III) any prepayment,
            purchase or redemption upon a change of control or similar event or
            (IV) with respect to the Indebtedness under the Exchange Bonds, any
            prepayment, purchase or redemption upon any determination or event
            of taxability; provided, that notwithstanding the foregoing,
            Borrower may, in Borrower's discretion, apply 50% (or such lesser
            percentage as may be required pursuant to the Exchange Indentures
            then in effect) of the Tandem Mill Sale Proceeds of an Approved Sale
            and Leaseback constituting a Permitted Tandem Mill Transaction that
            is not consummated in connection with an acquisition of stock or
            assets, to redeem a portion of the Series C Preferred or the
            Indebtedness under the Exchange Instruments, all as set forth in the
            Exchange Intercreditor Agreement; or

                  (v) after consummation of the Permitted Note Exchange Offer,
            pay cash interest accruing in respect of the Exchange Instruments,
            other than semi-annual interest, on each April 1 and October 1
            hereafter, commencing on October 1, 2002, payable as follows:

                                      -41-
<PAGE>
                        (a) during the period from the date of issuance of the
                  Exchange Instruments to and including March 31, 2003,
                  aggregate interest payments equal to the greater ("Fixed
                  Interest") of (I) 0.5% of the outstanding principal balance of
                  the Exchange Instruments or (II) $4,000,000 minus aggregate
                  interest accrued through March 31, 2003 in respect of the
                  Senior Notes and the Indebtedness under the City Loan
                  Agreement not exchanged pursuant to the Permitted Note
                  Exchange Offer;

                        (b) during the period from April 1, 2003 to and
                  including March 31, 2005, aggregate interest payments equal to
                  the lesser of (I) 10% per annum of the outstanding principal
                  balance of the Exchange Instruments (9% per annum in the case
                  of the Exchange Bonds) or (II) the sum of (A) the greater of
                  (x) 0.5% of the outstanding principal balance of the Exchange
                  Instruments and (y) $4,000,000, minus aggregate interest
                  accrued during each 12 month period from April 1 to March 31
                  in respect of the Senior Notes and the Indebtedness under the
                  City Loan Agreement not exchanged pursuant to the Permitted
                  Note Exchange Offer, plus (B) "Contingent Interest" (as
                  defined in the Exchange Instruments, as in existence on the
                  Effective Date); and

                        (c) at all times on and after April 1, 2005, aggregate
                  interest payments equal to 10% per annum of the outstanding
                  principal balance of the Exchange Instruments (9% per annum in
                  the case of the Exchange Bonds);

                  (vi) after consummation of the Permitted Note Exchange Offer,
            (a) amend or modify in any respect the terms of the Series C
            Preferred; or (b) exercise any conversion rights with respect to the
            Series C Preferred; provided, that the foregoing shall not prevent
            the conversion by Borrower of all or any of the Series C Preferred
            to common stock Securities of Borrower pursuant to the terms of the
            Series C Preferred as in existence on the Effective Date, so long as
            such conversion does not result in a Change of Control; or

                  (vii) make or permit any Subsidiary of Borrower to (a)
            exercise any optional right of termination prior to the "Expiration
            Date" (as defined in the MABCO Lease, as in effect on the date
            hereof), or any optional right of prepayment of all or any of the
            liabilities under the MABCO Lease or (b) unless immediately after
            making such payment, no Event of Default is in existence and the
            outstanding principal balance of the Loans is zero, make any payment
            in respect of the exercise by the lessor under the MABCO Lease of
            its right to require the exercise of the "Termination Option" (as
            defined in the MABCO Lease, as in effect on the date hereof), upon
            the occurrence of a "Put Event" (as defined in the MABCO Lease, as
            in effect on the date hereof) or in respect of any guaranty of such
            payment obligations.

                                      -42-
<PAGE>
            8.2.7. Distributions. Declare or make, or permit any Subsidiary of
      Borrower to declare or make, any Distributions, except for:

                  (i) Distributions by any Subsidiary of Borrower to Borrower or
            to another Subsidiary of Borrower;

                  (ii) Distributions paid solely in Securities of Borrower or
            any of its Subsidiaries;

                  (iii) redemption of the Series C Preferred (a) to the extent
            permitted in the proviso to subsection 8.2.6(iv) or (b) upon
            maturity thereof on April 1, 2013; and

                  (iv) Permitted Distributions, but in no event shall Borrower
            exercise any right of first refusal, call or similar optional
            repurchase rights provided under the Stock Plans.

            8.2.8. Capital Expenditures. Make Capital Expenditures (including,
      without limitation, by way of capitalized leases) which, in the aggregate,
      as to Borrower and all of its Subsidiaries, for any fiscal year set forth
      below, exceed the amount set forth below opposite such fiscal year, but
      excluding Capitalized Lease Obligations incurred in connection with the
      Liquidity Improvement Financing Plan, a Permitted GO Transaction and a
      Permitted RD Transaction:

<TABLE>
<CAPTION>
                  Fiscal Year                             Amount
                  -----------                             ------
<S>                                                    <C>
                      2002                             $13,800,000
                      2003                             $34,500,000
</TABLE>

      Notwithstanding the foregoing, the Capital Expenditure limitation
      applicable in the 2003 fiscal year shall be increased to $40,000,000 if
      (i) EBITDA for such fiscal year is equal to or greater than $98,400,000
      and (ii) after making each Capital Expenditure during such fiscal year in
      excess of the $34,500,000 limitation, pro forma Availability would be at
      least $50,000,000. If Borrower and its Subsidiaries do not use the entire
      amount of Capital Expenditures permitted in any Fiscal Year, they may
      carry forward to the first six months of the next succeeding fiscal year
      only, 50% of such unused amount (with Capital Expenditures made in such 6
      month period applied last to such unused amount).

            8.2.9. Disposition of Assets. Sell, lease or otherwise dispose of
      any of, or permit any Subsidiary of Borrower to sell, lease or otherwise
      dispose of any of, its Properties, including any disposition of Property
      as part of a sale and leaseback transaction, to or in favor of any Person,
      except for:

                  (i) sales of Inventory in the ordinary course of business;

                                      -43-
<PAGE>
                  (ii)  transfers of Property to Borrower by a Subsidiary of
            Borrower or to a Subsidiary of Borrower by another Subsidiary of
            Borrower;

                  (iii) so long as no Default or Event of Default exists and is
            continuing, dispositions of Property that is substantially worn,
            damaged, uneconomic or obsolete with Property of like kind, function
            and value, provided, that the replacement Property shall be acquired
            within 90 days after any disposition of Property that is to be
            replaced and the replacement Property shall be free and clear of
            Liens other than Permitted Liens that are not Purchase Money Liens;

                  (iv) so long as no Default or Event of Default exists and is
            continuing, dispositions of Equipment and other fixed assets which,
            in the aggregate during any consecutive twelve-month period, have a
            fair market value or a book value, whichever is less, of $5,000,000
            or less, and the net cash proceeds of which dispositions are
            promptly delivered to Agent for application against the then
            outstanding principal balance of the Revolving Credit Loans;

                  (v) dispositions of investments described in paragraphs (iv),
            (v), (vi) and (vii) of the definition of the term "Restricted
            Investments";

                  (vi) the transactions described on Exhibit 9.9 hereto in
            furtherance of the Liquidity Improvement Financing Program, all
            consummated on or before the Original Closing Date, to the extent
            the same were permitted in the Indentures and the City Loan
            Agreement;

                  (vii) the disposition of the Tandem Mill Collateral in
            connection with a Permitted Tandem Mill Transaction;

                  (viii) the disposition of the GO Facility in connection with a
            Permitted GO Transaction;

                  (ix) the disposition of the RD Facility in connection with a
            Permitted RD Transaction;

                  (x) the disposition of Borrower's CMS Assets in connection
            with a Permitted CMS Transaction; and

                  (xi) other dispositions expressly authorized by this
            Agreement.

            8.2.10. Securities of Subsidiaries. Permit any of its Subsidiaries
      to issue any additional Securities except to Borrower and except for
      director's qualifying Securities.

            8.2.11. Bill-and-Hold Sales, Etc. Make, or permit any Subsidiary of
      Borrower to make, a sale to any customer on a bill-and-hold, guaranteed
      sale, sale and

                                      -44-
<PAGE>
      return, sale on approval, repurchase or return or consignment basis,
      unless otherwise agreed by Agent and Majority Lenders.

            8.2.12. Restricted Investment. Make or have, or permit any
      Subsidiary of Borrower to make or have, any Restricted Investment.

            8.2.13. Subsidiaries and Joint Ventures. Create, acquire or
      otherwise suffer to exist, or permit any Subsidiary of Borrower to create,
      acquire or otherwise suffer to exist, any Subsidiary or joint venture
      arrangement not in existence as of the Original Closing Date, or commit,
      or permit any Subsidiary of Borrower to commit, to make a loan, advance or
      capital contribution to any joint venture arrangement or entity.

            8.2.14. Tax Consolidation. File or consent to the filing of any
      consolidated income tax return with any Person other than Borrower's
      Subsidiaries.

            8.2.15. Organizational Documents. Other than the amendment to
      Borrower's certificate of incorporation on or prior to the Effective Date
      as necessary to establish the Series C Preferred, in the form attached
      hereto as Exhibit 8.2.15, agree to, or suffer to occur, any amendment,
      supplement or addition to its or any of its Subsidiaries' charter,
      articles or certificate of incorporation, certificate of formation,
      limited partnership agreement, bylaws, limited liability agreement,
      operating agreement or other organizational documents (as the case may
      be), that would reasonably be expected to have a Material Adverse Effect.

            8.2.16. Fiscal Year End. Change, or permit any Subsidiary of
      Borrower to change, its fiscal year end.

            8.2.17. Negative Pledges. Enter into any agreement limiting the
      ability of Borrower or any of its Subsidiaries to voluntarily create Liens
      upon any of its Property, except pursuant to the Indentures, the City Loan
      Agreement and the Exchange Indentures.

            8.2.18. Structural Changes. Change its or any of its Subsidiaries'
      legal name, state of incorporation or organization, Type of Organization
      or Organizational I.D. Number, in each case without providing Agent with
      at least 30 days' prior written notice thereof.

                         SECTION 9. CONDITIONS PRECEDENT

      9.1.  Conditions to Effectiveness of this Agreement.

            Notwithstanding any other provision of this Agreement or any of the
other Loan Documents, this Agreement shall not be effective, and no Lender shall
be required to make any Loan, nor shall Agent be required to or issue or procure
any Letter of Credit or LC Guaranty, unless and until each of the following
conditions has been and continues to be satisfied on or prior to June 30, 2002
(provided, that during the period prior to the Effective Date, and after June
30, 2002 if such conditions have not been met, Lenders shall make loans
available to

                                      -45-
<PAGE>
Borrower, and Agent shall issue letters of credit and letter of credit
guaranties, in each case pursuant to the terms of the Original Loan Agreement):

            9.1.1. Permitted Note Exchange Offer and Consent Solicitations. The
      Permitted Note Exchange Offer shall have been consummated and in
      connection therewith, the Exchange Instruments shall have been issued
      pursuant to the Exchange Indentures, the Indentures and the City Loan
      Agreement shall have been amended as set forth in the Registration
      Statement and the Series C Preferred shall have been issued as provided in
      the Registration Statement.

            9.1.2. Documentation. On the Closing Date, Agent shall have
      received, in form and substance satisfactory to Agent and its counsel,
      duly executed copies of this Agreement and the other agreements,
      instruments, documents and other items listed on Exhibit 9.1.2(A) hereto.
      On or before the Effective Date, Agent shall have received, in form and
      substance satisfactory to Agent and its counsel, duly executed copies of
      all agreements, instruments, documents and other items listed on Exhibit
      9.1.2(B) hereto.

            9.1.3. No Default. No Default or Event of Default under the Original
      Loan Agreement shall exist.

            9.1.4. No Litigation. No action, proceeding, investigation,
      regulation or legislation shall have been instituted, threatened or
      proposed before any court, governmental agency or legislative body to
      enjoin, restrain or prohibit, or to obtain damages in respect of, or which
      is related to or arises out of this Agreement or the consummation of the
      transactions contemplated hereby including without limitation the
      Permitted Note Exchange Offer.

            9.1.5. Material Adverse Effect. As of the Effective Date, since
      December 31, 2001, there has not been any material adverse change in its
      business, assets, financial condition, income or prospects and no event or
      condition exists which would be reasonably likely to result in any
      Material Adverse Effect.

            9.2.  Conditions to Future Advances.

            Notwithstanding any other provision of this Agreement or any of the
other Loan Documents, and without affecting in any manner the rights of Agent or
any Lender under the other sections of this Agreement, no Lender shall be
required to make any Loan, nor shall Agent be required to or issue or procure
any Letter of Credit or LC Guaranty, unless and until each of the following
conditions has been and continues to be satisfied:

            9.2.1. Documentation. Agent shall have received, in form and
      substance satisfactory to Agent and its counsel, such additional
      documents, instruments, opinions and certificates as Agent and its counsel
      shall require from time to time pursuant to the terms of this Agreement
      and the Loan Documents.

            9.2.2. No Default. No Default or Event of Default shall exist.

                                      -46-
<PAGE>
          SECTION 10. EVENTS OF DEFAULT; RIGHTS AND REMEDIES ON DEFAULT

      10.1. Events of Default.

            The occurrence of one or more of the following events shall
constitute an "Event of Default":

            10.1.1. Payment of Obligations. Borrower shall fail to pay any of
      the Obligations hereunder or under any Note on the due date thereof
      (whether due at stated maturity, on demand, upon acceleration or
      otherwise).

            10.1.2. Misrepresentations. Any representation, warranty or other
      statement made or furnished to Agent or any Lender by or on behalf of
      Borrower, any Subsidiary of Borrower or any Guarantor in this Agreement,
      any of the other Loan Documents or any instrument, certificate or
      financial statement furnished in compliance with or in reference thereto
      proves to have been false or misleading in any material respect when made,
      furnished or reaffirmed pursuant to Section 7.2 hereof.

            10.1.3. Breach of Specific Covenants. Borrower shall fail or neglect
      to perform, keep or observe any covenant contained in Section or
      subsection 5.3, 5.4, 6.1.1, 6.1.2, 6.2.4, 6.2.5, 8.1.1, 8.1.2, 8.1.4,
      8.1.8, 8.1.11 or 8.2 hereof on the date that Borrower is required to
      perform, keep or observe such covenant or shall fail or neglect to
      perform, keep or observe any covenant contained in Section 8.1.3 or 8.1.7
      hereof within 5 days following the date on which Borrower is required to
      perform, keep or observe such covenant.

            10.1.4. Breach of Other Covenants. Borrower shall fail or neglect to
      perform, keep or observe any covenant contained in this Agreement (other
      than a covenant which is dealt with specifically elsewhere in Section 10.1
      hereof) and the breach of such other covenant is not cured to Agent's
      satisfaction within 15 days after the sooner to occur of Borrower's
      receipt of notice of such breach from Agent or the date on which such
      failure or neglect first becomes known to any officer of Borrower.

            10.1.5. Default Under Security Documents or Other Agreements. Any
      event of default shall occur under, or Borrower, any of its Subsidiaries
      or any other Guarantor shall default in the performance or observance of
      any term, covenant, condition or agreement contained in, any of the
      Security Documents, or the Other Agreements and such default shall
      continue beyond any applicable grace period.

            10.1.6. Other Defaults. There shall occur any default or event of
      default on the part of Borrower, any Subsidiary of Borrower or any other
      Guarantor under any agreement, document or instrument to which Borrower,
      such Subsidiary of Borrower or such Guarantor is a party or by which
      Borrower, such Subsidiary of Borrower or such Guarantor or any of its
      Property is bound, evidencing or relating to any Indebtedness (other than
      the Obligations) with an outstanding principal balance in excess of
      $5,000,000, if the payment or maturity of such Indebtedness is or could be

                                      -47-
<PAGE>
      accelerated in consequence of such event of default or demand for payment
      of such Indebtedness is made or could be made in accordance with the terms
      thereof.

            10.1.7. Uninsured Losses. Any material loss, theft, damage or
      destruction of any material portion of the Collateral, if not fully
      covered (subject to such deductibles and self-insurance retentions as
      Agent shall have permitted) by insurance.

            10.1.8. Insolvency and Related Proceedings. Borrower, any Subsidiary
      of Borrower or any Guarantor shall cease to be Solvent or shall suffer the
      appointment of a receiver, trustee, custodian or similar fiduciary, or
      shall make an assignment for the benefit of creditors, or any petition for
      an order for relief shall be filed by or against Borrower, any Subsidiary
      of Borrower or any Guarantor under U.S. federal bankruptcy laws (if
      against Borrower, any Subsidiary of Borrower or any Guarantor the
      continuation of such proceeding for more than 60 days), or Borrower, any
      Subsidiary of Borrower or any Guarantor shall make any offer of
      settlement, extension or composition to their respective unsecured
      creditors generally.

            10.1.9. Business Disruption; Condemnation. There shall occur a
      cessation of a substantial part of the business of Borrower or any
      Subsidiary of Borrower for a period which materially and adversely affects
      the ability of Borrower and its Subsidiaries capacity, taken as a whole,
      to continue their businesses on a profitable basis; or Borrower or any
      Subsidiary of Borrower shall suffer the loss or revocation of any license
      or permit now held or hereafter acquired by Borrower or any Subsidiary of
      Borrower, the loss or revocation of which could reasonably be expected to
      have a Material Adverse Effect; or Borrower and its Subsidiaries shall be
      enjoined, restrained or in any way prevented by court, governmental or
      administrative order from conducting all or any material part of the
      business affairs of Borrower and its Subsidiaries, taken as a whole; or
      any material lease or agreement pursuant to which Borrower or any
      Subsidiary of Borrower leases, uses or occupies any Property shall be
      canceled or terminated prior to the expiration of its stated term, other
      than any such lease or agreement the cancellation or termination of which
      could not reasonably be expected to have a Material Adverse Effect; or any
      material portion of the Collateral shall be taken through condemnation or
      the value of such Property shall be impaired through condemnation.

            10.1.10. Change of Control. A Change of Control shall have occurred.

            10.1.11. ERISA. A Reportable Event shall occur which leads to the
      termination of any Plan or for the appointment by the appropriate United
      States district court of a trustee for any Plan, or if any Plan shall be
      otherwise terminated or any such trustee shall be requested or otherwise
      appointed, or if Borrower, any Subsidiary of Borrower or any Guarantor is
      in "default" (as defined in Section 4219(c)(5) of ERISA) with respect to
      payments to a Multiemployer Plan resulting from Borrower's, such
      Subsidiary's or such Guarantor's complete or partial withdrawal from such
      Plan and, in each case described above such event could reasonably be
      expected to have a Material Adverse Effect.

                                      -48-
<PAGE>
            10.1.12. Challenge to Agreement. Borrower, any Subsidiary of
      Borrower or any Guarantor, or any Affiliate of any of them, shall
      challenge or contest in any action, suit or proceeding the validity or
      enforceability of this Agreement or any of the other Loan Documents, the
      legality or enforceability of any of the Obligations or the perfection or
      priority of any Lien granted to Agent.

            10.1.13. Repudiation of or Default Under Guaranty Agreement. Any
      Guarantor shall revoke or attempt to revoke the Guaranty Agreement signed
      by such Guarantor, or shall repudiate such Guarantor's liability
      thereunder or shall be in default under the terms thereof.

            10.1.14. Criminal Forfeiture. Borrower, any Subsidiary of Borrower
      or any Guarantor shall be criminally indicted or convicted under any law
      that could lead to a forfeiture of any Property of Borrower, any
      Subsidiary of Borrower or any Guarantor.

            10.1.15. Judgments. Any money judgments, writ of attachment or
      similar processes (collectively, "Judgments") are issued or rendered
      against Borrower, any Subsidiary of Borrower or any Guarantor, or any of
      their respective Property (i) in the case of money judgments, in an amount
      of $5,000,000 or more for all such judgments, attachments or processes in
      the aggregate, in each case in excess of any applicable insurance with
      respect to which the insurer has admitted liability, and (ii) in the case
      of non-monetary Judgments, such Judgment or Judgments (in the aggregate)
      could reasonably be expected to have a Material Adverse Effect, in each
      case which Judgment is not stayed, released or discharged within 30 days.

            10.1.16. Certain Payments in respect of Senior Notes and City Loan
      Agreement. During the period after the completion of the Permitted Note
      Exchange Offer (as evidenced by the issuance of the Exchange Instruments),
      Borrower (i) makes any payment of principal in respect of the Senior Notes
      or the Indebtedness under the City Loan Agreement prior to its stated
      maturity or (ii) in any 12 month period, pays more than an aggregate of
      $4,000,000 of accrued interest in respect of the Senior Notes and the
      Indebtedness under the City Loan Agreement (including without limitation
      any accrued and unpaid interest for prior periods).

            10.1.17. MABCO Lease. An "Event of Default" shall occur under the
      MABCO Lease and shall continue beyond any cure period applicable thereto
      under the terms of the MABCO Lease.

            10.2. Acceleration of the Obligations.

            Upon or at any time after the occurrence and during the continuance
of an Event of Default, (i) the Revolving Loan Commitments shall, at the option
of Agent or Majority Lenders be terminated and/or (ii) Agent or Majority Lenders
may declare all or any portion of the Obligations at once due and payable
without presentment, demand protest or further notice by Agent or any Lender,
and Borrower shall forthwith pay to Agent, the full amount of such Obligations,
provided, that upon the occurrence of an Event of Default specified in
subsection

                                      -49-
<PAGE>
10.1.8 hereof, the Revolving Loan Commitments shall automatically be terminated
and all of the Obligations shall become automatically due and payable, in each
case without declaration, notice or demand by Agent or any Lender.

            10.3. Other Remedies.

            Upon the occurrence and during the continuance of an Event of
Default, Agent shall have and may exercise from time to time the following other
rights and remedies:

            10.3.1. All of the rights and remedies of a secured party under the
      UCC or under other applicable law, and all other legal and equitable
      rights to which Agent or Lenders may be entitled, all of which rights and
      remedies shall be cumulative and shall be in addition to any other rights
      or remedies contained in this Agreement or any of the other Loan
      Documents, and none of which shall be exclusive.

            10.3.2. The right to take immediate possession of the Collateral,
      and to (i) require Borrower and each of its Subsidiaries to assemble the
      Collateral, at Borrower's expense, and make it available to Agent at a
      place designated by Agent which is reasonably convenient to both parties,
      and (ii) enter any premises where any of the Collateral shall be located
      and to keep and store the Collateral on said premises until sold (and if
      said premises be the Property of Borrower or any Subsidiary of Borrower,
      Borrower agrees not to charge, or permit any of its Subsidiaries to
      charge, Agent for storage thereof).

            10.3.3. The right to sell or otherwise dispose of all or any
      Collateral in its then condition, or after any further manufacturing or
      processing thereof, at public or private sale or sales, with such notice
      as may be required by law, in lots or in bulk, for cash or on credit, all
      as Agent, in its sole discretion, may deem advisable. Agent may, at
      Agent's option, disclaim any and all warranties regarding the Collateral
      in connection with any such sale. Borrower agrees that 10 days' written
      notice to Borrower or any of its Subsidiaries of any public or private
      sale or other disposition of Collateral shall be reasonable notice
      thereof, and such sale shall be at such locations as Agent may designate
      in said notice. Agent shall have the right to conduct such sales on
      Borrower's or any of its Subsidiaries' premises, without charge therefor,
      and such sales may be adjourned from time to time in accordance with
      applicable law. Agent shall have the right to sell, lease or otherwise
      dispose of the Collateral, or any part thereof, for cash, credit or any
      combination thereof, and Agent, on behalf of Lenders, may purchase all or
      any part of the Collateral at public or, if permitted by law, private sale
      and, in lieu of actual payment of such purchase price, may set off the
      amount of such price against the Obligations. The proceeds realized from
      the sale of any Collateral may be applied, after allowing 2 Business Days
      for collection, first to the costs, expenses and attorneys' fees incurred
      by Agent in collecting the Obligations, in enforcing the rights of Agent
      and Lenders under the Loan Documents and in collecting, retaking,
      completing, protecting, removing, storing, advertising for sale, selling
      and delivering any Collateral, second to the interest due upon any of the
      Obligations; third, to the principal of the Obligations other than the
      Derivative

                                      -50-
<PAGE>
      Obligations and the Product Obligations; and fourth, to the Derivative
      Obligations and the Product Obligations. If any deficiency shall arise,
      Borrower and each Guarantor shall remain jointly and severally liable to
      Agent and Lenders therefor.

            10.3.4. Agent is hereby granted a license or other right to use,
      without charge, Borrower's and each of its Subsidiary's labels, patents,
      copyrights, licenses, rights of use of any name, trade secrets,
      tradenames, trademarks and advertising matter, or any Property of a
      similar nature, as it pertains to the Collateral, in completing,
      advertising for sale and selling any Collateral and Borrower's and each of
      its Subsidiary's rights under all licenses and all franchise agreements
      shall inure to Agent's benefit.

            10.3.5. Agent may, at its option, require Borrower to deposit with
      Agent funds equal to the LC Amount and, if Borrower fails to promptly make
      such deposit, Agent may advance such amount as a Revolving Credit Loan
      (whether or not an Overadvance is created thereby). Each such Revolving
      Credit Loan shall be secured by all of the Collateral and shall constitute
      a Base Rate Portion. Any such deposit or advance shall be held by Agent as
      a reserve to fund future payments on such LC Guaranties and future
      drawings against such Letters of Credit. At such time as all LC Guaranties
      have been paid or terminated and all Letters of Credit have been drawn
      upon or expired, any amounts remaining in such reserve shall be applied
      against any outstanding Obligations, or, if all Obligations have been
      indefeasibly paid in full, returned to Borrower.

            10.4. Set Off and Sharing of Payments.

            In addition to any rights now or hereafter granted under applicable
law and not by way of limitation of any such rights, during the continuance of
any Event of Default, each Lender is hereby authorized by Borrower at any time
or from time to time, with prior written consent of Agent and with reasonably
prompt subsequent notice to Borrower (any prior or contemporaneous notice to
Borrower being hereby expressly waived) to set off and to appropriate and to
apply any and all (i) balances held by such Lender at any of its offices for the
account of Borrower or any of its Subsidiaries (regardless of whether such
balances are then due to Borrower or its Subsidiaries), and (ii) other property
at any time held or owing by such Lender to or for the credit or for the account
of Borrower or any of its Subsidiaries, against and on account of any of the
Obligations. Any Lender exercising a right to set off shall, to the extent the
amount of any such set off exceeds its Revolving Loan Percentage of the amount
set off, purchase for cash (and the other Lenders shall sell) interests in each
such other Lender's pro rata share of the Obligations as would be necessary to
cause such Lender to share such excess with each other Lender in accordance with
their respective Revolving Loan Percentages. Each Borrower agrees, to the
fullest extent permitted by law, that any Lender may exercise its right to set
off with respect to amounts in excess of its pro rata share of the Obligations
and upon doing so shall deliver such excess to Agent for the benefit of all
Lenders in accordance with the Revolving Loan Percentages.

                                      -51-
<PAGE>
            10.5. Remedies Cumulative; No Waiver.

            All covenants, conditions, provisions, warranties, guaranties,
indemnities, and other undertakings of Borrower contained in this Agreement and
the other Loan Documents, or in any document referred to herein or contained in
any agreement supplementary hereto or in any schedule or in any Guaranty
Agreement given to Agent or any Lender or contained in any other agreement
between any Lender and Borrower or between Agent and Borrower heretofore,
concurrently, or hereafter entered into, shall be deemed cumulative to and not
in derogation or substitution of any of the terms, covenants, conditions, or
agreements of Borrower herein contained. The failure or delay of Agent or any
Lender to require strict performance by Borrower of any provision of this
Agreement or to exercise or enforce any rights, Liens, powers, or remedies
hereunder or under any of the aforesaid agreements or other documents or
security or Collateral shall not operate as a waiver of such performance, Liens,
rights, powers and remedies, but all such requirements, Liens, rights, powers,
and remedies shall continue in full force and effect until all Loans and other
Obligations owing or to become owing from Borrower to Agent and each Lender have
been fully satisfied. None of the undertakings, agreements, warranties,
covenants and representations of Borrower contained in this Agreement or any of
the other Loan Documents and no Default or Event of Default by Borrower under
this Agreement or any other Loan Documents shall be deemed to have been
suspended or waived by Lenders, unless such suspension or waiver is by an
instrument in writing specifying such suspension or waiver and is signed by a
duly authorized representative of Agent (on behalf of itself, Majority Lenders
or all Lenders, as required pursuant to subsection 11.10) and directed to
Borrower.

                              SECTION 11. THE AGENT

      11.1. Authorization and Action.

            Each Lender hereby appoints and authorizes Agent to take such action
on its behalf and to exercise such powers under this Agreement and the other
Loan Documents as are delegated to Agent by the terms hereof and thereof,
together with such powers as are reasonably incidental thereto. Each Lender
hereby acknowledges that Agent shall not have by reason of this Agreement
assumed a fiduciary relationship in respect of any Lender. In performing its
functions and duties under this Agreement, Agent shall act solely as agent of
Lenders and shall not assume, or be deemed to have assumed, any obligation
toward, or relationship of agency or trust with or for, Borrower. As to any
matters not expressly provided for by this Agreement and the other Loan
Documents (including without limitation enforcement and collection of the
Notes), Agent may, but shall not be required to, exercise any discretion or take
any action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the Majority Lenders, whenever such instruction shall be requested by Agent or
required hereunder, or a greater or lesser number of Lenders if so required
hereunder, and such instructions shall be binding upon all Lenders; provided,
that Agent shall be fully justified in failing or refusing to take any action
which exposes Agent to any liability or which is contrary to this Agreement, the
other Loan Documents or applicable law, unless Agent is indemnified to its
satisfaction by the other Lenders against any and all liability and expense

                                      -52-
<PAGE>
which it may incur by reason of taking or continuing to take any such action. If
Agent seeks the consent or approval of the Majority Lenders (or a greater or
lesser number of Lenders as required in this Agreement), with respect to any
action hereunder, Agent shall send notice thereof to each Lender and shall
notify each Lender at any time that the Majority Lenders (or such greater or
lesser number of Lenders) have instructed Agent to act or refrain from acting
pursuant hereto.

            11.2. Agent's Reliance, Etc.

            Neither Agent, any Affiliate of Agent, nor any of their respective
directors, officers, agents or employees shall be liable for any action taken or
omitted to be taken by it or them under or in connection with this Agreement or
the other Loan Documents, except for its or their own gross negligence or
willful misconduct. Without limitation of the generality of the foregoing,
Agent: (i) may treat each Lender party hereto as the holder of Obligations until
Agent receives written notice of the assignment or transfer or such lender's
portion of the Obligations signed by such Lender and in form reasonably
satisfactory to Agent; (ii) may consult with legal counsel, independent public
accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants or experts, (iii) makes no warranties or
representations to any Lender and shall not be responsible to any Lender for any
recitals, statements, warranties or representations made in or in connection
with this Agreement or any other Loan Documents; (iv) shall not have any duty
beyond Agent's customary practices in respect of loans in which Agent is the
only lender, to ascertain or to inquire as to the performance or observance of
any of the terms, covenants or conditions of this Agreement or the other Loan
Documents on the part of Borrower, to inspect the property (including the books
and records) of Borrower, to monitor the financial condition of Borrower or to
ascertain the existence or possible existence or continuation of any Default or
Event of Default; (v) shall not be responsible to any Lender for the due
execution, legality, validity, enforceability, genuineness, sufficiency or value
of this Agreement or the other Loan Documents or any other instrument or
document furnished pursuant hereto or thereto; (vi) shall not be liable to any
Lender for any action taken, or inaction, by Agent upon the instructions of
Majority Lenders pursuant to Section 11.1 hereof or refraining to take any
action pending such instructions; (vii) shall not be liable for any
apportionment or distributions of payments made by it in good faith pursuant to
Section 3 hereof; (viii) shall incur no liability under or in respect of this
Agreement or the other Loan Documents by acting upon any notice, consent,
certificate, message or other instrument or writing (which may be by telephone,
facsimile, telegram, cable or telex) believed in good faith by it to be genuine
and signed or sent by the proper party or parties; and (ix) may assume that no
Event of Default has occurred and is continuing, unless Agent has actual
knowledge of the Event of Default, has received notice from Borrower or
Borrower's independent certified public accounts stating the nature of the Event
of Default, or has received notice from a Lender stating the nature of the Event
of Default and that such Lender considers the Event of Default to have occurred
and to be continuing. In the event any apportionment or distribution described
in clause (vii) above is determined to have been made in error, the sole
recourse of any Person to whom payment was due but not made shall be to recover
from the recipients of

                                      -53-
<PAGE>
such payments any payment in excess of the amount to which they are determined
to have been entitled.

            11.3. Fleet and Affiliates.

            With respect to its commitment hereunder to make Loans, Fleet shall
have the same rights and powers under this Agreement and the other Loan
Documents as any other Lender and may exercise the same as though it were not
Agent; and the terms "Lender," "Lenders" or "Majority Lenders" shall, unless
otherwise expressly indicated, include Fleet in its individual capacity as a
Lender. Fleet and its Affiliates may lend money to, and generally engage in any
kind of business with, Borrower, and any Person who may do business with or own
Securities of Borrower all as if Fleet were not Agent and without any duty to
account therefor to any other Lender.

            11.4. Lender Credit Decision.

            Each Lender acknowledges that it has, independently and without
reliance upon Agent or any other Lender and based on the financial statements
referred to herein and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and without
reliance upon Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement. Agent
shall not have any duty or responsibility, either initially or on an ongoing
basis, to provide any Lender with any credit or other similar information
regarding Borrower.

            11.5. Indemnification.

            Lenders agree to indemnify Agent (to the extent not reimbursed by
Borrower), in accordance with their respective Revolving Loan Percentages, from
and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by, or asserted against
Agent in any way relating to or arising out of this Agreement or any other Loan
Document or any action taken or omitted by Agent under this Agreement; provided
that no Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from Agent's gross negligence or willful misconduct.
Without limitation of the foregoing, each Lender agrees to reimburse Agent
promptly upon demand for its ratable share, as set forth above, of any
out-of-pocket expenses (including attorneys' fees) incurred by Agent in
connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiation, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement and each other Loan Document, to the
extent that Agent is not reimbursed for such expenses by Borrower. The
obligations of Lenders under this Section 11.5 shall survive the payment in full
of all Obligations and the termination of this Agreement. If after payment and
distribution of any amount by Agent to Lenders, any Lender or any other Person,
including Borrower, any

                                      -54-
<PAGE>
creditor of Borrower, a liquidator, administrator or trustee in bankruptcy,
recovers from Agent any amount found to have been wrongfully paid to Agent or
disbursed by Agent to Lenders, then Lenders, in accordance with their respective
Revolving Loan Percentages, shall reimburse Agent for all such amounts.

            11.6. Rights and Remedies to be Exercised by Agent Only.

            Each Lender agrees that, except as set forth in Section 10.4, no
Lender shall have any right individually (i) to realize upon the security
created by this Agreement or any other Loan Document, (ii) to enforce any
provision of this Agreement or any other Loan Document, or (iii) to make demand
under this Agreement or any other Loan Document.

            11.7. Agency Provisions Relating to Collateral.

            Each Lender authorizes and ratifies Agent's entry into this
Agreement and the Security Documents for the benefit of Lenders. Each Lender
agrees that any action taken by Agent with respect to the Collateral in
accordance with the provisions of this Agreement or the Security Documents, and
the exercise by Agent of the powers set forth herein or therein, together with
such other powers as are reasonably incidental thereto, shall be authorized and
binding upon all Lenders. Agent is hereby authorized on behalf of all Lenders,
without the necessity of any notice to or further consent from any Lender, to
take any action with respect to any Collateral or the Loan Documents which may
be necessary to perfect and maintain perfected Agent's Liens upon the
Collateral, for its benefit and the ratable benefit of Lenders. Lenders hereby
irrevocably authorize Agent, at its option and in its discretion, to release any
Lien granted to or held by Agent upon any Collateral (i) upon termination of the
Agreement and payment and satisfaction of all Obligations; or (ii) constituting
property being sold or disposed of if Borrower certifies to Agent that the sale
or disposition is made in compliance with subsection 8.2.9 hereof (and Agent may
rely conclusively on any such certificate, without further inquiry); or (iii) to
the extent such release is required pursuant to the Exchange Intercreditor
Agreement; or (iv) constituting property in which Borrower owned no interest at
the time the Lien was granted or at any time thereafter; or (v) in connection
with any foreclosure sale or other disposition of Collateral after the
occurrence and during the continuation of an Event of Default or (vi) if
approved, authorized or ratified in writing by Agent at the direction of all
Lenders. Upon request by Agent at any time, Lenders will confirm in writing
Agent's authority to release particular types or items of Collateral pursuant
hereto. Agent shall have no obligation whatsoever to any Lender or to any other
Person to assure that the Collateral exists or is owned by Borrower or is cared
for, protected or insured or has been encumbered or that the Liens granted to
Agent herein or pursuant to the Security Documents have been properly or
sufficiently or lawfully created, perfected, protected or enforced or are
entitled to any particular priority, or to exercise at all or in any particular
manner or under any duty of care, disclosure or fidelity, or to continue
exercising, any of its rights, authorities and powers granted or available to
Agent in this Section 11.7 or in any of the Loan Documents, it being understood
and agreed that in respect of the Collateral, or any act, omission or event
related thereto, Agent may act in any manner it may deem appropriate, in its
sole discretion, but consistent with the provisions of this Agreement, including
given

                                      -55-
<PAGE>
Agent's own interest in the Collateral as a Lender and that Agent shall have no
duty or liability whatsoever to any Lender.

            11.8. Agent's Right to Purchase Commitments.

            Agent shall have the right, but shall not be obligated, at any time
upon written notice to any Lender and with the consent of such Lender, which may
be granted or withheld in such Lender's sole discretion, to purchase for Agent's
own account all of such Lender's interests in this Agreement, the other Loan
Documents and the Obligations, for the face amount of the outstanding
Obligations owed to such Lender, including without limitation all accrued and
unpaid interest and fees.

            11.9. Right of Sale, Assignment, Participations.

            Borrower hereby consents to any Lender's participation, sale,
assignment, transfer or other disposition, at any time or times hereafter, of
this Agreement and any of the other Loan Documents, or of any portion hereof or
thereof, including, without limitation, such Lender's rights, title, interests,
remedies, powers, and duties hereunder or thereunder subject to the terms and
conditions set forth below:

            11.9.1. Sales, Assignments. Each Lender hereby agrees that, with
      respect to any sale or assignment (i) no such sale or assignment shall be
      for an amount of less than $5,000,000, (ii) each such sale or assignment
      shall be made on terms and conditions which are customary in the industry
      at the time of the transaction, (iii) Agent must consent, such consent not
      to be unreasonably withheld, to each such assignment to a Person that is
      not an original signatory to this Agreement, (iv) the assigning Lender
      shall pay to the Agent a processing and recordation fee of $3,500 and any
      out-of-pocket attorneys' fees and expenses incurred by the Agent in
      connection with any such sale or assignment and (v) each such sale or
      assignment shall involve pro rata portions of the Revolving Credit Loans
      and Revolving Loan Commitment of the assigning Lender. After such sale or
      assignment has been consummated (x) the assignee Lender thereupon shall
      become a "Lender" for all purposes of this Agreement and (y) the assigning
      Lender shall have no further liability for funding the portion of
      Revolving Loan Commitments assumed by such other Lender.

            11.9.2. Participations. Any Lender may grant participations in its
      extensions of credit hereunder to any other Lender or other lending
      institution (a "Participant"), provided that (i) no such participation
      shall be for an amount of less than $5,000,000, (ii) no Participant shall
      thereby acquire any direct rights under this Agreement, (iii) no
      Participant shall be granted any right to consent to any amendment, except
      to the extent any of the same pertain to (1) reducing the aggregate
      principal amount of, or interest rate on, or fees applicable to, any Loan
      or (2) extending the final stated maturity of any Loan or the stated
      maturity of any portion of any payment of principal of, or interest or
      fees applicable to, any of the Loans; provided, that the rights described
      in this subclause (2) shall not be deemed to include the right to consent
      to

                                      -56-
<PAGE>
      any amendment with respect to or which has the effect of requiring any
      mandatory prepayment of any portion of any Loan or any amendment or waiver
      of any Default or Event of Default, (iv) no sale of a participation in
      extensions of credit shall in any manner relieve the originating Lender of
      its obligations hereunder, (v) the originating Lender shall remain solely
      responsible for the performance of such obligations, (vi) Borrower and the
      Agent shall continue to deal solely and directly with the originating
      Lender in connection with the originating Lender's rights and obligations
      under this Agreement and the other Loan Documents, (vii) in no event shall
      any financial institution purchasing the participation grant a
      participation in its participation interest in the Loans without the prior
      written consent of Agent, and, in the absence of a Default or an Event of
      Default, Borrower, which consents shall not unreasonably be withheld,
      (viii) all amounts payable by Borrower hereunder shall be determined as if
      the originating Lender had not sold any such participation and (ix) no
      such participation shall be made unless it involves a pro rata portion of
      each of the Revolving Credit Loans and Revolving Loan Commitment of the
      Lender granting the participation.

            11.9.3. Certain Agreements of Borrower. Borrower agrees that (i) it
      will use its best efforts to assist and cooperate with each Lender in any
      manner reasonably requested by such Lender to effect the sale of
      participation in or assignments of any of the Loan Documents or any
      portion thereof or interest therein, including, without limitation,
      assisting in the preparation of appropriate disclosure documents and
      making members of management available at reasonable times to meet with
      and answer questions of potential assignees and Participants; and (ii)
      subject to the provisions of Section 12.14 hereof, such Lender may
      disclose credit information regarding Borrower to any potential
      Participant or assignee.

            11.9.4.     Non U.S. Resident Transferees.  If, pursuant to this
      Section 11.9, any interest in this Agreement or any Loans is transferred
      to any transferee which is organized under the laws of any jurisdiction
      other than the United States or any state thereof, the transferor Lender
      shall cause such transferee (other than any Participant), and may cause
      any Participant, concurrently with and as a condition precedent to the
      effectiveness of such transfer, to (i) represent to the transferor Lender
      (for the benefit of the transferor Lender, the Agent, and Borrower) that
      under applicable law and treaties no taxes will be required to be withheld
      by Agent, Borrower or the transferor Lender with respect to any payments
      to be made to such transferee in respect of the interest so transferred,
      (ii) furnish to the transferor Lender, Agent and Borrower either United
      States Internal Revenue Service Form W-8BEN or United States Internal
      Revenue Service Form W-8ECI (wherein such transferee claims entitlement to
      complete exemption from United States federal withholding tax on all
      interest payments hereunder), and (iii) agree (for the benefit of the
      transferor Lender, Agent and Borrower) to provide the transferor Lender,
      Agent and Borrower a new Form W-8BEN or Form W-8ECI upon the obsolescence
      of any previously delivered form and comparable statements in accordance
      with applicable United States laws and regulations and amendments duly
      executed and completed by such transferee, and to

                                      -57-
<PAGE>
      comply from time to time with all applicable United States laws and
      regulations with regard to such withholding tax exemption.

            11.10.      Amendment.

            No amendment or waiver of any provision of this Agreement or any
other Loan Document (including without limitation any Note), nor consent to any
departure by Borrower therefrom, shall in any event be effective unless the same
shall be in writing and signed by the Majority Lenders and Borrower, and then
such waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given; provided, that no amendment, waiver or
consent shall be effective, unless (i) in writing and signed by each Lender, to
do any of the following: (1) increase or decrease the aggregate Revolving Loan
Commitments, (2) reduce the principal of, or interest on, any amount payable
hereunder or under any Note, other than those payable only to Fleet in its
capacity as Agent, which may be reduced by Fleet unilaterally, (3) decrease any
interest rate payable hereunder, (4) postpone any date fixed for any payment of
principal of, or interest on, any amounts payable hereunder or under any Note,
other than those payable only to Fleet in its capacity as Agent, which may be
postponed by Fleet unilaterally, (5) change clause (ii)(a) or clause (ii)(b) of
the definition of the term Borrowing Base to increase the advance percentage of
85% applicable to Eligible Accounts or the advance percentage of 85% applicable
to net orderly liquidation percentages of categories or types of Eligible
Inventory contained therein, or to alter the appraisal procedures applicable to
Eligible Inventory, (6) change clause (ii)(c) or clause (ii)(d) of the
definition of the term Borrowing Base, (7) amend subsection 8.2.1(ii), (8)
reduce the number of Lenders that shall be required for Lenders or any of them
to take any action hereunder, (9) release or discharge any Person liable for the
performance of any obligations of Borrower hereunder or under any of the Loan
Documents, (10) amend any provision of this Agreement that requires the consent
of all Lenders, or consent to or waive any breach of such provision, (11) amend
the definition of the term "Majority Lenders", (12) amend this Section 11.10 or
(13) release any substantial portion of the Collateral, unless otherwise
permitted pursuant to Section 11.7 hereof; or (ii) in writing and signed by
Agent in addition to the Lenders required above to affect the rights or duties
of Agent under this Agreement, any Note or any other Loan Document.

            11.11.      Agent's Limited Call Right.

            In the event that any Lender is unwilling to consent to the
consummation of a Permitted Acquisition and Majority Lenders have consented to
the consummation of such Permitted Acquisition, then the Agent shall have the
right, but not the obligation, to require each non-consenting Lender to assign
and sell its Revolving Loans, its Revolving Loan Percentage of LC Amounts and
its Revolving Loan Commitment to one or more of the other Lenders, or any other
assignee or assignees determined by Agent, for a purchase price equal to the
unpaid principal balance of the Revolving Loans being purchased, any accrued and
unpaid interest thereon and such Lender's Revolving Loan Percentage of accrued
and unpaid Letters of Credit and LC Guaranties fees, each such assignment to be
completed within 180 days after the date on which the applicable consent was
refused. Each such assignment will be effective upon satisfaction of the
conditions set forth in subsections 11.9.1(ii), (iii) and (v) above.

                                      -58-
<PAGE>
            11.12.      Resignation of Agent; Appointment of Successor.

            The Agent may resign as Agent by giving not less than thirty (30)
days' prior written notice to the Lenders and Borrower. If the Agent shall
resign under this Agreement, then, (i) subject to the consent of the Borrower
(which consent shall not be unreasonably withheld and which consent shall not be
required during any period in which a Default or an Event of Default exists),
the Majority Lenders shall appoint from among the Lenders a successor agent for
the Lenders or (ii) if a successor agent shall not be so appointed and approved
within the thirty (30) day period following the Agent's notice to the Lenders
and the Borrower of its resignation, then the Agent shall appoint a successor
agent who shall serve as Agent until such time as the Majority Lenders appoint a
successor agent, subject to the Borrower's consent as set forth above. Upon its
appointment, such successor agent shall succeed to the rights, powers and duties
of the Agent and the term "Agent" shall mean such successor effective upon its
appointment, and the former Agent's rights, powers and duties as Agent shall be
terminated without any other or further act or deed on the part of such former
Agent or any of the parties to this Agreement. After the resignation of any
Agent hereunder, the provisions of this Section 11 shall inure to the benefit of
such former Agent and such former Agent shall not by reason of such resignation
be deemed to be released from liability for any actions taken or not taken by it
while it was an Agent under this Agreement.

            11.13.      Syndication Agent and Documentation Agents.

            Syndication Agent and each Documentation Agent identified in the
introductory paragraph of this Agreement, in its capacity as such, shall have no
rights, powers, duties or responsibilities hereunder or under any other Loan
Documents and no implied rights, powers, duties or responsibilities shall be
read into this Agreement or any other Loan Document or otherwise exist on behalf
of or against such entity, in its capacity as such. If Syndication Agent or
either Documentation Agent resigns as such agent, no successor syndication or
documentation agent shall be appointed.

                            SECTION 12. MISCELLANEOUS

      12.1. Power of Attorney.

            Borrower hereby irrevocably designates, makes, constitutes and
appoints Agent (and all Persons designated by Agent) as Borrower's true and
lawful attorney (and agent-in-fact), solely with respect to the matters set
forth in this Section 12.1, and Agent, or Agent's agent, may, without notice to
Borrower and in Borrower's or Agent's name, but at the cost and expense of
Borrower:

            12.1.1. At such time or times as Agent or said agent, in its sole
      discretion, may determine, endorse Borrower's name on any checks, notes,
      acceptances, drafts, money orders or any other evidence of payment or
      proceeds of the Collateral which come into the possession of Agent or
      under Agent's control.

                                      -59-
<PAGE>
            12.1.2. At such time or times upon or after the occurrence and
      during the continuance of an Event of Default (provided that the
      occurrence of an Event of Default shall not be required with respect to
      clauses (iv), (vi), (viii) and (ix) below), as Agent or its agent in its
      sole discretion may determine: (i) demand payment of the Accounts from the
      Account Debtors, enforce payment of the Accounts by legal proceedings or
      otherwise, and generally exercise all of Borrower's rights and remedies
      with respect to the collection of the Accounts; (ii) settle, adjust,
      compromise, discharge or release any of the Accounts or other Collateral
      or any legal proceedings brought to collect any of the Accounts or other
      Collateral; (iii) sell or assign any of the Accounts and other Collateral
      upon such terms, for such amounts and at such time or times as Agent deems
      advisable, and at Agent's option, with all warranties regarding the
      Collateral disclaimed; (iv) take control, in any manner, of any item of
      payment or proceeds relating to any Collateral; (v) prepare, file and sign
      Borrower's name to a proof of claim in bankruptcy or similar document
      against any Account Debtor or to any notice of lien, assignment or
      satisfaction of lien or similar document in connection with any of the
      Collateral; (vi) receive, open and dispose of all mail addressed to
      Borrower and notify postal authorities to change the address for delivery
      thereof to such address as Agent may designate; (vii) endorse the name of
      Borrower upon any of the items of payment or proceeds relating to any
      Collateral and deposit the same to the account of Agent on account of the
      Obligations; (viii) endorse the name of Borrower upon any chattel paper,
      document, instrument, invoice, freight bill, bill of lading or similar
      document or agreement relating to the Accounts, Inventory and any other
      Collateral; (ix) use Borrower's stationery and sign the name of Borrower
      to verifications of the Accounts and notices thereof to Account Debtors;
      (x) use the information recorded on or contained in any data processing
      equipment and computer hardware and software relating to the Accounts,
      Inventory, Equipment included in the Tandem Mill Collateral, the Hot Mill
      Collateral or the Tin Mill Collateral and any other Collateral; (xi) make
      and adjust claims under policies of insurance; and (xii) do all other acts
      and things necessary, in Agent's determination, to fulfill Borrower's
      obligations under this Agreement.

            The power of attorney granted hereby shall constitute a power
coupled with an interest and shall be irrevocable.

            12.2. Indemnity.

            Borrower hereby agrees to indemnify Agent and each Lender (and each
of their Affiliates) and hold Agent and each Lender (and each of their
Affiliates) harmless from and against any liability, loss, damage, suit, action
or proceeding ever suffered or incurred by any such Person (including reasonable
attorneys fees and legal expenses) as the result of Borrower's failure to
observe, perform or discharge Borrower's duties hereunder. In addition, Borrower
shall defend Agent and each Lender (and each of their Affiliates) against and
save it harmless from all claims of any Person with respect to the Collateral
(except those resulting from the gross negligence or intentional misconduct of
any such Person). Without limiting the generality of the foregoing, these
indemnities shall extend to any claims asserted against Agent or any Lender (and
each of their Affiliates) by any Person under any Environmental Laws by reason
of

                                      -60-
<PAGE>
Borrower's or any other Person's failure to comply with laws applicable to solid
or hazardous waste materials or other toxic substances. Notwithstanding any
contrary provision in this Agreement, the obligation of Borrower under this
Section 12.2 shall survive the payment in full of the Obligations and the
termination of this Agreement.

            12.3. Sale of Interest.

            Borrower may not sell, assign or transfer any interest in this
Agreement, any of the other Loan Documents, or any of the Obligations, or any
portion thereof, including, without limitation, Borrower's rights, title,
interests, remedies, powers, and duties hereunder or thereunder.

            12.4. Severability.

            Wherever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement shall be prohibited by or invalid under
applicable law, such provision shall be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Agreement.

            12.5. Successors and Assigns.

            This Agreement, the Other Agreements and the Security Documents
shall be binding upon and inure to the benefit of the successors and assigns of
Borrower, Agent and each Lender permitted under Section 11.9 hereof.

            12.6. Cumulative Effect; Conflict of Terms.

            The provisions of the Other Agreements and the Security Documents
are hereby made cumulative with the provisions of this Agreement. Except as
otherwise provided in any of the other Loan Documents by specific reference to
the applicable provision of this Agreement, and except as provided in Section
3.2, if any provision contained in this Agreement is in direct conflict with, or
inconsistent with, any provision in any of the other Loan Documents, the
provision contained in this Agreement shall govern and control.

            12.7. Execution in Counterparts.

            This Agreement may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which
counterparts taken together shall constitute but one and the same instrument.

            12.8. Notice.

            Except as otherwise provided herein, all notices, requests and
demands to or upon a party hereto, to be effective, shall be in writing and
shall be sent by personal delivery against receipt, by overnight courier or by
facsimile and, unless otherwise expressly provided

                                      -61-
<PAGE>
herein, shall be deemed to have been validly served, given, delivered or
received immediately when delivered against receipt, one Business Day after
deposit with an overnight courier or, in the case of facsimile notice, when
sent, addressed as follows:

       If to Agent:                    Fleet Capital Corporation
                                       One South Wacker Drive
                                       Suite 1400
                                       Chicago, Illinois  60606
                                       Attention:  Loan Administration Manager
                                       Facsimile No.:  (312) 827-6537

       With a copy to:                 Goldberg, Kohn, Bell, Black,
                                         Rosenbloom & Moritz, Ltd.
                                       55 East Monroe Street
                                       Suite 3700
                                       Chicago, Illinois  60603
                                       Attention:  David L. Dranoff, Esq.
                                       Facsimile No.:  (312) 332-2196

       If to Borrower:                 Weirton Steel Corporation
                                       400 Three Springs Drive
                                       Weirton, West Virginia  26062
                                       Attention:  Mark E. Kaplan, Senior Vice
                                                   President-Finance and
                                                   Administration
                                       Facsimile No.:  (304) 797-2991

       With a copy to:                 Weirton Steel Corporation
                                       400 Three Springs Drive
                                       Weirton, West Virginia  26062
                                       Attention:  William R. Kiefer, Esq.,
                                                   General Counsel and
                                                   Secretary
                                       Facsimile No.:  (304) 797-3484

or to such other address as each party may designate for itself by notice given
in accordance with this Section 12.8; provided, however, that any notice,
request or demand to or upon Agent or a Lender pursuant to subsection 3.1.1 or
4.2.2 hereof shall not be effective until received by Agent or such Lender.

            12.9. Consent.

            Whenever Agent's, Majority Lenders' or all Lenders' consent is
required to be obtained under this Agreement, any of the Other Agreements or any
of the Security Documents as a condition to any action, inaction, condition or
event, except as otherwise specifically provided herein, Agent, Majority Lenders
or all Lenders, as applicable, shall be authorized to give or withhold such
consent in their sole and absolute discretion and to condition its consent

                                      -62-
<PAGE>
upon the giving of additional Collateral security for the Obligations, the
payment of money or any other matter.

            12.10.      Credit Inquiries.

            Borrower hereby authorizes and permits Agent and each Lender to
respond to usual and customary credit inquiries from third parties concerning
Borrower or any of its Subsidiaries.

            12.11.      Time of Essence.

            Time is of the essence of this Agreement, the Other Agreements and
the Security Documents.

            12.12.      Entire Agreement.

            This Agreement and the other Loan Documents, together with all other
instruments, agreements and certificates executed by the parties in connection
therewith or with reference thereto, embody the entire understanding and
agreement between the parties hereto and thereto with respect to the subject
matter hereof and thereof and supersede all prior agreements, understandings and
inducements, whether express or implied, oral or written.

            12.13.      Interpretation.

            No provision of this Agreement or any of the other Loan Documents
shall be construed against or interpreted to the disadvantage of any party
hereto by any court or other governmental or judicial authority by reason of
such party having or being deemed to have structured or dictated such provision.

            12.14.      Confidentiality.

            Agent and each Lender shall hold all nonpublic information obtained
pursuant to the requirements of this Agreement in accordance with Agent's and
such Lender's customary procedures for handling confidential information of this
nature and in accordance with safe and sound banking practices and in any event
may make disclosure reasonably required by a prospective participant or assignee
in connection with the contemplated participation or assignment or as required
or requested by any governmental authority or representative thereof or pursuant
to legal process and shall require any such participant or assignee to agree to
comply with this Section 12.14.

            12.15.      GOVERNING LAW; CONSENT TO FORUM.

            THIS AGREEMENT HAS BEEN NEGOTIATED, EXECUTED AND DELIVERED IN AND
SHALL BE DEEMED TO HAVE BEEN MADE IN CHICAGO, ILLINOIS. THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS;
PROVIDED, HOWEVER, THAT IF ANY OF THE COLLATERAL SHALL BE LOCATED IN ANY

                                      -63-
<PAGE>
JURISDICTION OTHER THAN ILLINOIS, THE LAWS OF SUCH JURISDICTION SHALL GOVERN THE
METHOD, MANNER AND PROCEDURE FOR FORECLOSURE OF AGENT'S LIEN UPON SUCH
COLLATERAL AND THE ENFORCEMENT OF AGENT'S OTHER REMEDIES IN RESPECT OF SUCH
COLLATERAL TO THE EXTENT THAT THE LAWS OF SUCH JURISDICTION ARE DIFFERENT FROM
OR INCONSISTENT WITH THE LAWS OF ILLINOIS. AS PART OF THE CONSIDERATION FOR NEW
VALUE RECEIVED, AND REGARDLESS OF ANY PRESENT OR FUTURE DOMICILE OR PRINCIPAL
PLACE OF BUSINESS OF BORROWER, AGENT OR ANY LENDER, BORROWER HEREBY CONSENTS AND
AGREES THAT THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS, AND THE UNITED STATES
DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS, EASTERN DIVISION, SHALL
HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN
BORROWER ON THE ONE HAND AND AGENT OR ANY LENDER ON THE OTHER HAND PERTAINING TO
THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT.
BORROWER EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY
ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND BORROWER HEREBY WAIVES ANY
OBJECTION WHICH BORROWER MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION,
IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF
SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. BORROWER
HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS
ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS,
COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
ADDRESSED TO BORROWER AT THE ADDRESS SET FORTH IN THIS AGREEMENT AND THAT
SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF BORROWER'S ACTUAL
RECEIPT THEREOF OR 5 DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE
PREPAID. NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO AFFECT THE
RIGHT OF AGENT OR ANY LENDER TO SERVE LEGAL PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW, OR TO PRECLUDE THE ENFORCEMENT BY AGENT OR ANY LENDER OF ANY
JUDGMENT OR ORDER OBTAINED IN SUCH FORUM OR THE TAKING OF ANY ACTION UNDER THIS
AGREEMENT TO ENFORCE SAME IN ANY OTHER APPROPRIATE FORUM OR JURISDICTION.

            12.16.      WAIVERS BY BORROWER.

            BORROWER WAIVES (I) THE RIGHT TO TRIAL BY JURY (WHICH AGENT AND EACH
LENDER HEREBY ALSO WAIVES) IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM OF
ANY KIND ARISING OUT OF OR RELATED TO ANY OF THE LOAN DOCUMENTS, THE OBLIGATIONS
OR THE COLLATERAL; (II) PRESENTMENT, DEMAND AND PROTEST AND NOTICE OF

                                      -64-
<PAGE>
PRESENTMENT, PROTEST, DEFAULT, NON PAYMENT, MATURITY, RELEASE, COMPROMISE,
SETTLEMENT, EXTENSION OR RENEWAL OF ANY OR ALL COMMERCIAL PAPER, ACCOUNTS,
CONTRACT RIGHTS, DOCUMENTS, INSTRUMENTS , CHATTEL PAPER AND GUARANTIES AT ANY
TIME HELD BY AGENT OR ANY LENDER ON WHICH BORROWER MAY IN ANY WAY BE LIABLE AND
HEREBY RATIFIES AND CONFIRMS WHATEVER AGENT OR ANY LENDER MAY DO IN THIS REGARD;
(III) NOTICE PRIOR TO AGENT'S TAKING POSSESSION OR CONTROL OF THE COLLATERAL OR
ANY BOND OR SECURITY WHICH MIGHT BE REQUIRED BY ANY COURT PRIOR TO ALLOWING
AGENT TO EXERCISE ANY OF AGENT'S REMEDIES; (IV) THE BENEFIT OF ALL VALUATION,
APPRAISEMENT AND EXEMPTION LAWS; (V) NOTICE OF ACCEPTANCE HEREOF AND (VI) EXCEPT
AS PROHIBITED BY LAW, ANY RIGHT TO CLAIM OR RECOVER ANY SPECIAL, EXEMPLARY,
PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO,
ACTUAL DAMAGES. BORROWER ACKNOWLEDGES THAT THE FOREGOING WAIVERS ARE A MATERIAL
INDUCEMENT TO AGENT'S AND EACH LENDER'S ENTERING INTO THIS AGREEMENT AND THAT
AGENT AND EACH LENDER IS RELYING UPON THE FOREGOING WAIVERS IN ITS FUTURE
DEALINGS WITH BORROWER. BORROWER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED
THE FOREGOING WAIVERS WITH ITS LEGAL COUNSEL AND HAS KNOWINGLY AND VOLUNTARILY
WAIVED ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE
EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL
BY THE COURT.

            12.17.      Advertisement.

            Borrower hereby authorizes Agent to publish the name of Borrower and
the amount of the credit facility provided hereunder in any "tombstone" or
comparable advertisement which Agent elects to publish.

                                      -65-
<PAGE>
            IN WITNESS WHEREOF, this Agreement has been duly executed on the day
and year specified at the beginning of this Agreement.

                                 WEIRTON STEEL CORPORATION

                                 By________________________________________
                                 Title_____________________________________

                                 FLEET CAPITAL CORPORATION,
                                   as Agent and as a Lender

                                 By________________________________________
                                 Title_____________________________________

                                 Revolving Loan Commitment:  $50,000,000

                                 FOOTHILL CAPITAL CORPORATION,
                                   as Syndication Agent and as a Lender

                                 By________________________________________
                                 Title_____________________________________

                                 Revolving Loan Commitment:  $50,000,000

                                 THE CIT GROUP/BUSINESS CREDIT, INC.,
                                   as a Documentation Agent and as a Lender

                                 By________________________________________
                                 Title_____________________________________

                                 Revolving Loan Commitment:  $50,000,000

                                      -66-
<PAGE>
                                 GMAC BUSINESS CREDIT, LLC,
                                   as a Documentation Agent and as a Lender

                                 By________________________________________
                                 Title_____________________________________

                                 Revolving Loan Commitment:  $35,000,000

                                 TRANSAMERICA BUSINESS
                                   CAPITAL CORPORATION, as a Lender

                                 By________________________________________
                                 Title_____________________________________

                                 Revolving Loan Commitment:  $15,000,000

                                      -67-
<PAGE>
                                   APPENDIX A

                               GENERAL DEFINITIONS

            When used in the Amended and Restated Loan and Security Agreement
dated as of __________, 2002, by and among Fleet Capital Corporation,
individually and as Agent, Foothill Capital Corporation, individually and as
Syndication Agent, The CIT Group/Business Credit, Inc., individually and as a
Documentation Agent, GMAC Business Credit, LLC, individually and as a
Documentation Agent, the other financial institutions which are or become
parties thereto and Weirton Steel Corporation, (a) the terms Chattel Paper,
Document, Equipment, Fixture, General Intangibles, Instrument, Inventory,
Proceeds and Supporting Obligations have the respective meanings assigned
thereto under the UCC; (b) all terms indicating Collateral having the meanings
assigned thereto under the UCC shall be deemed to mean such Property, whether
now owned or hereafter created or acquired by Borrower or in which Borrower now
has or hereafter acquires any interest; (c) capitalized terms which are not
otherwise defined have the respective meanings assigned thereto in said Amended
and Restated Loan and Security Agreement; and (d) the following terms shall have
the following meanings (terms defined in the singular to have the same meaning
when used in the plural and vice versa):

            2004 Indenture - that certain Indenture dated as of July 3, 1996
      between Bankers Trust Company and Borrower, pursuant to which Borrower
      issued $125,000,000 of 11-3/8% Senior Notes due 2004, as amended from time
      to time.

            2004 Senior Notes - any promissory notes, debentures or other
      instruments previously issued by Borrower pursuant to the 2004 Indenture,
      and any replacement promissory notes, debentures or other instruments
      issued pursuant thereto.

            2005 Indenture - that certain Indenture dated as of June 12, 1995
      between Bankers Trust Company and Borrower, pursuant to which Borrower
      issued $125,000,000 of 10-3/4% Senior Notes due 2005, as amended from time
      to time.

            2005 Senior Notes - any promissory notes, debentures or other
      instruments previously issued by Borrower pursuant to the 2005 Indenture,
      and any replacement promissory notes, debentures or other instruments
      issued pursuant thereto.

            Account - any right to payment for goods sold or leased or for
      services rendered, whether or not it has been earned by performance.

            Account Debtor - any Person who is or may become obligated under or
      on account of any Account, Contract Right, Chattel Paper or General
      Intangible.

            Affiliate - a Person (other than a Subsidiary): (i) which directly
      or indirectly through one or more intermediaries controls, or is
      controlled by, or is under common control with, a Person; (ii) which
      beneficially owns or holds 5% of the Voting Stock of a Person; or (iii) 5%
      or more of the Voting Stock (or in the case of a Person which is not a
      corporation, 5% or more of the voting equity interest) of which is
      beneficially owned or held by a Person or a Subsidiary of a Person.
<PAGE>
            Agent - Fleet Capital Corporation in its capacity as agent for the
      Lenders under the Agreement and any successor in that capacity appointed
      pursuant to subsection 11.11 of the Agreement.

            Agreement - the Amended and Restated Loan and Security Agreement
      referred to in the first sentence of this Appendix A, all Exhibits and
      Schedules thereto and this Appendix A, as each of the same may be amended
      from time to time.

            Applicable Margin - from the Original Closing Date to, but not
      including, the first Adjustment Date (as hereinafter defined) the
      percentages set forth below with respect to the Base Rate Portion and the
      LIBOR Portion:

<TABLE>
<S>                                                         <C>
             Base Rate Portion                              2.00%
             LIBOR Portion                                  3.50%
</TABLE>

            The percentages set forth above will be adjusted on the first day of
      each October, January, April and July during the Term, commencing with
      October 1, 2002 (each such date an "Adjustment Date"), effective
      prospectively, by reference to the applicable "Financial Measurement" (as
      defined below) for the quarter most recently ending in accordance with the
      following:

<TABLE>
<CAPTION>
         Financial Measurement              Base Rate Portion       LIBOR Portion
         ---------------------              -----------------       -------------
<S>                                         <C>                     <C>
      Less than or equal to $50,000,000           2.25%                 3.75%

      $50,000,001 to $85,000,000                  2.00%                 3.50%

      $85,000,001 to $110,000,000                 1.75%                 3.25%

      Greater than $110,000,000                   1.50%                 3.00%
</TABLE>

      For purposes hereof, "Financial Measurement" shall mean the average Gross
      Availability for the quarter then most recently ended, as determined by
      Agent consistent with the terms of the Agreement.

            Approved Financing Transaction - a transaction in which Borrower
      incurs Indebtedness secured by the Tandem Mill Collateral (i) that is
      permitted pursuant to the Exchange Indentures (or, at any time after all
      Indebtedness under the Exchange Notes has been paid in full, that is
      permitted pursuant to the Exchange Loan Agreement), (ii) that is
      consummated concurrently with an acquisition of stock or assets to which
      Majority Lenders have consented, and (iii) which constitutes a Permitted
      Tandem Mill Transaction.

            Approved Sale - an Asset Disposition of the Tin Mill Collateral, the
      Hot Mill Collateral or the Tandem Mill Collateral (i) that is permitted
      pursuant to the Exchange Indentures (or, at any time after all
      Indebtedness under the Exchange Notes has been paid in full, that is
      permitted pursuant to the Exchange Loan Agreement) and (ii) that

                                      A-2
<PAGE>
      is permitted pursuant to subsection 8.2.9 of the Agreement or to which
      Majority Lenders have consented (or, in the case of the Tandem Mill
      Collateral, to which Agent and all Lenders have consented, in their
      reasonable credit judgment).

            Approved Sale and Leaseback - a sale and leaseback transaction (i)
      that is permitted pursuant to the Exchange Indentures (or, at any time
      after all Indebtedness under the Exchange Notes has been paid in full,
      that is permitted pursuant to the Exchange Loan Agreement) and (ii) that
      is permitted pursuant to subsection 8.2.9 of the Agreement or to which
      Majority Lenders (or in the case of a sale and leaseback transaction that
      constitutes a Permitted Tandem Mill Transaction, Agent and all Lenders, in
      their reasonable credit judgment) have consented.

            Asset Disposition - as defined in the Exchange Note Indenture, as in
      effect on the date hereof and as amended, supplemented or otherwise
      modified with the consent of Majority Lenders.

            Availability - the amount of additional money which Borrower is
      entitled to borrow from time to time as Revolving Credit Loans, such
      amount being the difference derived when the sum of the principal amount
      of Revolving Credit Loans then outstanding (including any amounts which
      Agent or any Lender may have paid for the account of Borrower pursuant to
      any of the Loan Documents and which have not been reimbursed by Borrower),
      the LC Amount and any reserves is subtracted from the Borrowing Base. If
      the amount outstanding is equal to or greater than the Borrowing Base,
      Availability is 0.

            Bank - Fleet National Bank.

            Base Rate - the rate of interest announced or quoted by Bank from
      time to time as its prime rate for commercial loans, whether or not such
      rate is the lowest rate charged by Bank to its most preferred borrowers;
      and, if such prime rate for commercial loans is discontinued by Bank as a
      standard, a comparable reference rate designated by Bank as a substitute
      therefor shall be the Base Rate.

            Base Rate Portion - that portion of the Revolving Credit Loans that
      is not subject to a LIBOR Option.

            Bonds - the Pollution Control Revenue Refunding Bonds (Weirton Steel
      Corporation Project) Series 1989 issued by the City of Weirton, West
      Virginia.

            Borrowing Base - as at any date of determination thereof, an amount
      equal to the lesser of:

                  (i)   the Revolving Credit Maximum Amount; or

                  (ii)  an amount equal to:

                                      A-3
<PAGE>
                        (a)   85% of the net amount of Eligible Accounts
                              outstanding at such date; plus

                        (b)   up to 85% (or such lesser percentage as Agent may
                              determine from time to time in its reasonable
                              credit judgment), of the net orderly liquidation
                              percentage of each category or type of Eligible
                              Inventory, as determined by Hilco Appraisal
                              Services, LLC or another appraiser acceptable to
                              Majority Lenders, and reflected in the most recent
                              Inventory appraisal delivered to Agent under the
                              Agreement; minus

                        (c)   $20,000,000.

      Notwithstanding the foregoing, (I) the amount of clause (b) above shall be
      limited to $100,000,000, and (II) the sum of clauses (a) plus (b) minus
      (c) shall be limited to (i) 80% of Accounts as reflected on the
      consolidated financial statements of Borrower, as determined pursuant to
      the Indentures, as in effect on the Closing Date and (ii) 50% of Inventory
      as reflected on the consolidated financial statements of Borrower, as
      determined pursuant to the Indentures, as in effect on the Closing Date.
      The limitations set forth in the immediately preceding sentence and each
      of the advance rates set forth above may be adjusted downward by Agent, as
      Agent shall deem necessary or appropriate in its reasonable credit
      judgment.

            For purposes hereof, (1) the net amount of Eligible Accounts at any
      time shall be the face amount of such Eligible Accounts less any and all
      returns, rebates, discounts (which may, at Agent's option, be calculated
      on shortest terms), credits, allowances or excise taxes of any nature at
      any time issued, owing, claimed by Account Debtors, granted, outstanding
      or payable in connection with such Accounts at such time (provided, that
      such amounts shall not be subtracted from the net amount of Eligible
      Accounts to the extent already taken into account in determining the gross
      amount of Eligible Accounts or in the form of a reserve pursuant to
      subsection 1.1.1 of the Agreement) and (2) the amount of Eligible
      Inventory shall be determined on a first-in, first-out, lower of cost or
      market basis in accordance with GAAP.

            Borrowing Base Certificate - a certificate by a responsible officer
      of Borrower, substantially in the form of Exhibit 8.1.4 (or another form
      acceptable to Agent) setting forth the calculation of the Borrowing Base,
      including a calculation of each component thereof, all in such detail as
      shall be satisfactory to Agent. All calculations of the Borrowing Base in
      connection with the preparation of any Borrowing Base Certificate shall
      originally be made by Borrower and certified to Agent; provided, that
      Agent shall have the right to review and adjust, in the exercise of its
      reasonable credit judgment based on the terms of the Agreement, any such
      calculation after giving notice thereof to the Borrower, (1) to reflect
      its reasonable estimate of declines in value of any of the Collateral
      described therein, and (2) to the

                                      A-4
<PAGE>
      extent that Agent determines that such calculation is not in accordance
      with this Agreement.

            Business Day - any day excluding Saturday, Sunday and any day which
      is a legal holiday under the laws of the State of Wisconsin or the State
      of Illinois or is a day on which banking institutions located in either of
      such states are closed.

            Capital Expenditures - expenditures made or liabilities incurred for
      the acquisition of any fixed assets or improvements, replacements,
      substitutions or additions thereto which have a useful life of more than
      one year, including the total principal portion of Capitalized Lease
      Obligations.

            Capitalized Lease Obligation - any Indebtedness represented by
      obligations under a lease that is required to be capitalized for financial
      reporting purposes in accordance with GAAP.

            Change of Control - any Person (other than the trusts under
      Borrower's Stock Plans) shall own or control either (i) more than 50% of
      the aggregate issued and outstanding Voting Stock of Borrower or (ii) a
      sufficient percentage of the issued and outstanding Voting Stock of
      Borrower to elect or control the majority of the board of directors of
      Borrower; or Borrower shall fail to own and control 100% of the Securities
      of its Subsidiaries; or a "Change of Control" (as is defined in the
      Exchange Note Indenture, as it exists on the Effective Date) shall have
      occurred.

            City Loan Agreement - the Loan Agreement dated as of November 1,
      1989 between Borrower and the City of Weirton, West Virginia and executed
      in connection with certain Pollution Control Revenue Refunding Bonds
      (Weirton Steel Corporation Project) Series 1989, issued on November 1,
      1989.

            Closing Date - __________, 2002.

            CMS Assets - all the assets and Property owned and used by Borrower
      as part of, or in connection with, its facility commonly known as the
      "Central Machine Shop" and consisting of the following: (i) real Property
      of approximately 5.7 acres located on Old North Main Street in Weirton,
      West Virginia south of Borrower's former Foster Wheeler Steam Generating
      Facility, including all buildings thereon, fixtures and appurtenances
      pertaining thereto (the "CMS Realty"), (ii) all Equipment located on the
      CMS Realty, including all cranes, machine tools, welding equipment,
      presses, tooling, cabinets, spare parts, metal stock, and all general
      plant equipment, specifically excluding, however, office furniture and
      office equipment located on the CMS Realty used by Central Machine Shop
      personnel and located on the second floor of the Central Machine Shop
      building, and (iii) all Equipment located in Borrower's facility situated
      at Borrower's Tin Mill and commonly known as the "Tin Mill Shop," said
      Equipment in clauses (ii) and (iii) being more specifically identified in
      Exhibit A-9.

                                      A-5
<PAGE>
            Code - the Internal Revenue Code of 1986, as amended, and any
      successor statute, and all rules and regulations promulgated thereunder.

            Collateral - all of the Property and interests in Property described
      in Section 5 of the Agreement, and all other Property and interests in
      Property that now or hereafter secure the payment and performance of any
      of the Obligations.

            Collateral Protection Loans - as defined in subsection 1.1.4 of the
      Agreement.

            Compliance Certificate - as defined in subsection 8.1.3 of the
      Agreement.

            Consolidated - the consolidation in accordance with GAAP of the
      accounts or other items as to which such term applies.

            Contract Right - any right of Borrower to payment under a contract
      for the sale or lease of goods or the rendering of services, which right
      is at the time not yet earned by performance.

            Current Assets - at any date means the amount at which all of the
      current assets of a Person would be properly classified as current assets
      shown on a balance sheet at such date in accordance with GAAP.

            Default - an event or condition the occurrence of which would, with
      the lapse of time or the giving of notice, or both, become an Event of
      Default.

            Default Rate - as defined in subsection 2.1.2 of the Agreement.

            Derivative Obligations - every obligation of a Person under any
      forward contract, futures contract, exchange contract, swap, option or
      other financing agreement or arrangement (including, without limitation,
      caps, floors, collars and similar agreement), the value of which is
      dependent upon interest rates, currency exchange rates, commodities or
      other indices.

            Distribution - in respect of any Person means and includes: (i) the
      payment of any dividends or other distributions on Securities (except
      distributions in such Securities) and (ii) the redemption or acquisition
      of Securities of such Person, as the case may be, unless made
      contemporaneously from the net proceeds of the sale of Securities.

            Documentation Agent - each of GMAC Business Credit, LLC and The CIT
      Group/Business Credit, Inc., in its capacity as a documentation agent
      under the Agreement.

            Dominion Account - a special bank account or accounts of Agent
      established by Borrower pursuant to subsection 6.2.4 of the Agreement at
      banks selected by Borrower, but acceptable to Agent in its discretion, and
      over which Agent shall have sole and exclusive access and control for
      withdrawal purposes.

                                      A-6
<PAGE>
            EBITDA - with respect to any period, the sum of Borrower's and its
      Subsidiaries' Consolidated net earnings (or loss) before interest expense,
      income taxes, depreciation and amortization for said period (but excluding
      any extraordinary gains for said period), as determined in accordance with
      GAAP.

            Effective Date - the date upon which all conditions contained in
      Section 9.1 of the Agreement have first been satisfied.

            Eligible Account - an Account arising in the ordinary course of the
      business of Borrower from the sale of goods or rendition of services which
      Agent, in its reasonable credit judgment based on the terms of the
      Agreement, deems to be an Eligible Account. Without limiting the
      generality of the foregoing, and without duplication with any reserves
      against Eligible Accounts established under subsection 1.1.1 of the
      Agreement, no Account shall be an Eligible Account if:

                  (i) it arises out of a sale made or services rendered by
            Borrower to a Subsidiary of Borrower or an Affiliate of Borrower or
            to a Person controlled by an Affiliate of Borrower; or

                  (ii) it remains unpaid more than 60 days after the original
            due date; or

                  (iii) it remains unpaid more than 90 days after the original
            invoice date, except with respect to up to $20,000,000 in the
            aggregate of Accounts outstanding at any time which remaining unpaid
            more than 91 days, but less than 121 days after the original invoice
            date; or

                  (iv) the total unpaid Eligible Accounts of the Account Debtor
            exceed 15% of the net amount of all Eligible Accounts, but only to
            the extent of such excess; or

                  (v) any covenant, representation or warranty contained in the
            Agreement with respect to such Account has been breached; or

                  (vi) the Account Debtor is also a creditor or supplier of
            Borrower or any Subsidiary of Borrower, or the Account Debtor has
            disputed liability with respect to such Account, or the Account
            Debtor has made any claim with respect to any other Account due from
            such Account Debtor to Borrower or any Subsidiary of Borrower, or
            the Account otherwise is or may become subject to right of setoff by
            the Account Debtor, provided, that any such Account shall be
            eligible to the extent such amount thereof exceeds such contract,
            dispute, claim, setoff or similar right; or

                  (vii) the Account Debtor has commenced a voluntary case under
            the federal bankruptcy laws, as now constituted or hereafter
            amended, or made an assignment for the benefit of creditors, or a
            decree or order for relief has been entered by a court having
            jurisdiction in the premises in respect of the Account

                                      A-7
<PAGE>
            Debtor in an involuntary case under the federal bankruptcy laws, as
            now constituted or hereafter amended, or any other petition or other
            application for relief under the federal bankruptcy laws, as now
            constituted or hereafter amended, has been filed against the Account
            Debtor, or if the Account Debtor has failed, suspended business,
            ceased to be Solvent, or consented to or suffered a receiver,
            trustee, liquidator or custodian to be appointed for it or for all
            or a significant portion of its assets or affairs; or

                  (viii) it arises from a sale made or services rendered to an
            Account Debtor outside the United States, Puerto Rico or Canada; or

                  (ix) (1) it arises from a sale to the Account Debtor on a
            bill-and-hold, guaranteed sale, sale-or-return, sale-on-approval, or
            any other repurchase or return basis; or (2) it is subject to a
            reserve established by Borrower for potential returns or refunds, to
            the extent of such reserve; or

                  (x) the Account Debtor is the United States of America or any
            department, agency or instrumentality thereof, unless Borrower
            assigns its right to payment of such Account to Agent, in a manner
            satisfactory to Agent, in its judgment, so as to comply with the
            Assignment of Claims Act of 1940 (31 U.S.C.Section 203 et seq., as
            amended); or

                  (xi) it is not at all times subject to Agent's duly perfected,
            first priority security interest or is subject to a Lien that is not
            a Permitted Lien; or

                  (xii) the goods giving rise to such Account have not been
            delivered to and accepted by the Account Debtor or the services
            giving rise to such Account have not been performed by Borrower and
            accepted by the Account Debtor or the Account otherwise does not
            represent a final sale; or

                  (xiii) the Account is evidenced by chattel paper or an
            instrument of any kind, or has been reduced to judgment; or

                  (xiv) Borrower or a Subsidiary of Borrower has made any
            agreement with the Account Debtor for any extension, compromise,
            settlement or modification of any Account or any deduction
            therefrom, except for discounts or allowances which are made in the
            ordinary course of business for prompt payment and which discounts
            or allowances are reflected in the calculation of the face value of
            each invoice related to such Account; or

                  (xv) 25% or more of the Accounts owing from the Account Debtor
            (other than Crown Cork & Seal, Inc. and its Affiliates) are not
            Eligible Accounts hereunder; or, in the case of Crown Cork & Seal,
            Inc. and its Affiliates, taken as a whole, 10% or more than the
            Accounts owing from such Account Debtor are not Eligible Accounts
            hereunder, in each case, solely because of the application of
            clauses (ii) and (iii) of this definition; or

                                      A-8
<PAGE>
                  (xvi) Borrower has made an agreement with the Account Debtor
            to extend the time of payment thereof beyond the limit provided in
            clause (ii) of this definition; or

                  (xvii) it represents service charges, late fees or similar
            charges; or

                  (xviii) the Account Debtor is Crown Cork & Seal, Inc. or one
            of its Affiliates and the aggregate Accounts owing by Crown Cork &
            Seal, Inc. and its Affiliates, taken as a whole, exceed $10,000,000;
            provided, that Agent may further reduce such amount from time to
            time in its discretion), but solely to the extent of such excess; or

                  (xix) it arises under a lease by Borrower to the Account
            Debtor; or

                  (xx) it is not otherwise acceptable to Agent in its reasonable
            credit judgment.

            Eligible Inventory - Inventory of Borrower (other than packaging
      materials and supplies, tooling, samples and literature) which Agent, in
      its reasonable credit judgment based upon the terms of the Agreement,
      deems to be Eligible Inventory. Without limiting the generality of the
      foregoing, and without duplication with any reserves against Eligible
      Inventory established under subsection 1.1.1 of the Agreement, no
      Inventory shall be Eligible Inventory if:

                  (i) it is not raw materials, work in process that is, in
            Agent's opinion, readily marketable in its current form or finished
            goods which meet the specifications of the purchase order or
            contract for such Inventory, if any;

                  (ii) it is fuel oil, coke breeze, sump breeze, store supplies,
            melting slag or dross; or

                  (iii) it is not in good, new and saleable condition or is
            otherwise unmerchantable; or

                  (iv) it is slow-moving or obsolete; or

                  (v) it does not meet all standards imposed by any governmental
            agency or authority; or

                  (vi) it does not conform in all respects to any covenants,
            warranties and representations set forth in the Agreement applicable
            to it; or

                  (vii) it is not at all times subject to Agent's duly
            perfected, first priority security interest or is subject to a Lien
            that is not a Permitted Lien; or

                  (viii) it is not situated at a location in compliance with the
            Agreement, provided that Inventory situated at a location not owned
            by Borrower will be

                                      A-9
<PAGE>
            Eligible Inventory only (a) if it is consignment Inventory, Borrower
            has complied with the requirements of Agent and Majority Lenders
            with respect thereto or (b) if it is otherwise situated at a
            location not owned by Borrower, (I) at least $100,000 in Inventory
            is situated at such location and (II) Agent has received a
            satisfactory landlord's agreement, processor letter or bailee
            letter, as applicable, with respect to such location, and in the
            case of Inventory located with a processor or bailee, Agent has
            filed an appropriate UCC financing statement covering such Inventory
            showing the processor as debtor, Borrower as secured party and Agent
            as assignee of secured party (provided, the Borrower shall only be
            required to comply with this clause (b) on and after May 31, 2002 in
            order for applicable Inventory to remain Eligible Inventory
            hereunder); or

                  (ix) it is in transit; or

                  (x) it is not otherwise acceptable to Agent in its reasonable
            credit judgment.

            Environmental Laws - all federal, state and local laws, rules,
      regulations, ordinances, orders and consent decrees relating to health,
      safety and environmental matters.

            ERISA - the Employee Retirement Income Security Act of 1974, as
      amended, and any successor statute, and all rules and regulations from
      time to time promulgated thereunder.

            Event of Default - as defined in Section 10.1 of the Agreement.

            Exchange Act - the Securities Act of 1934, as amended, and any
      successor statute, and all rules and regulations promulgated thereunder.

            Exchange Bond Indenture - the Indenture of Trust pursuant to which
      Exchange Bonds are being issued in connection with the Permitted Note
      Exchange Offer.

            Exchange Bonds - the bonds issued in exchange for the bonds
      originally issued pursuant to the City Loan Agreement.

            Exchange Indentures - collectively (i) the Exchange Note Indenture
      and (ii) the Exchange Bond Indenture, each in form and substance
      reasonably acceptable to Agent, as each such Indenture is amended from
      time to time.

            Exchange Instruments - any promissory notes, bonds, debentures or
      other instruments issued by Borrower pursuant to either Exchange Indenture
      in connection with the Permitted Note Exchange Offer, including without
      limitation the Exchange Bonds and the Exchange Notes, and any replacement
      bonds, promissory notes, debentures or other instruments issued pursuant
      thereto.

                                      A-10
<PAGE>
            Exchange Intercreditor Agreement - the Intercreditor Agreement dated
      as of the Effective Date executed by the collateral agent under the Junior
      Intercreditor Agreement, the indenture trustee under the Exchange Note
      Indenture, the indenture trustee under the Exchange Bond Indenture and
      Agent.

            Exchange Loan Agreement - the Agreement between the City of Weirton,
      West Virginia and Borrower executed in connection with the Exchange Bonds.

            Exchange Note Indenture - the Indenture pursuant to which Exchange
      Notes are being issued in connection with the Permitted Note Exchange
      Offer.

            Exchange Notes - the notes issued in exchange for the notes
      originally issued pursuant to the Indentures.

            Fee Letters - as defined in Section 2.3 of the Agreement.

            Foster Wheeler/Steamco - the transaction comprising the sale of
      Borrower's Foster Wheeler Steam Generating Facility and related assets by
      Borrower's Subsidiary, FW Holdings, Inc., to MABCO Steam Company, LLC, an
      entity controlled by certain of Borrower's vendors, pursuant to a Purchase
      Agreement dated as of October 26, 2001, the lease of such facility by FW
      Holdings, Inc. pursuant to the MABCO Lease, the payment of rentals and
      repurchase of such facility in accordance with the terms thereof and the
      supply of influent, steam, and electrical generation, labor and other
      activities related thereto pursuant to a Supply Agreement and Labor Supply
      Agreement, each dated as of October 26, 2001.

            GAAP - generally accepted accounting principles in the United States
      of America in effect from time to time.

            GO Facility - Borrower's general office facility located at 400
      Three Springs Drive, Weirton, West Virginia.

            Gross Availability - an amount equal to the difference derived when
      the sum of the principal amount of Revolving Credit Loans then outstanding
      (including any amounts which Agent or any Lender may have paid for the
      account of Borrower pursuant to any of the Loan Documents and which have
      not been reimbursed by Borrower), the LC Amount and any reserves is
      subtracted from the amount derived under clause (ii) of the definition of
      Borrowing Base. If the amount outstanding is equal to or greater than the
      amount derived under clause (ii) of the definition of Borrowing Base,
      Gross Availability is 0.

            Guarantors - each Person who hereafter guarantees payment or
      performance of the whole or any part of the Obligations.

            Guaranty Agreements - each guaranty hereafter executed by any
      Guarantor.

                                      A-11
<PAGE>
            Hot Mill Collateral - the real Property constituting Borrower's Hot
      Strip Mill located at Borrower's Weirton, West Virginia steel-making
      facility, which converts slabs into flat rolled coils and which is legally
      described on Exhibit A-4 attached to the Agreement, together with all
      Equipment and Fixtures now or hereafter located thereon (whether or not
      later moved), including without limitation the Equipment listed on Exhibit
      A-5 attached to the Agreement.

            Indebtedness - as applied to a Person means, without duplication:

                  (i) all items which in accordance with GAAP would be included
            in determining total liabilities as shown on the liability side of a
            balance sheet of such Person as at the date as of which Indebtedness
            is to be determined, including, without limitation, Capitalized
            Lease Obligations;

                  (ii)  all obligations of other Persons which such Person has
            guaranteed;

                  (iii) all reimbursement obligations in connection with letters
            of credit or letter of credit guaranties issued for the account of
            such Person;

                  (iv) Derivative Obligations;

                  (v) all obligations in respect of preferred stock Securities,
            to the extent subject to mandatory redemption; and

                  (vi) in the case of Borrower (without duplication), the
            Obligations.

            Indentures - collectively, the 2004 Indenture and the 2005
      Indenture.

            Intellectual Property - means: all past, present and future: trade
      secrets, know-how and other proprietary information; trademarks, internet
      domain names, service marks, trade dress, trade names, business names,
      designs, logos, slogans (and all translations, adaptations, derivations
      and combinations of the foregoing) indicia and other source and/or
      business identifiers, and the goodwill of the business relating thereto
      and all registrations or applications for registrations which have
      heretofore been or may hereafter be issued thereon throughout the world;
      copyrights (including copyrights for computer programs) and copyright
      registrations or applications for registrations which have heretofore been
      or may hereafter be issued throughout the world and all tangible property
      embodying the copyrights, unpatented inventions (whether or not
      patentable); patent applications and patents; industrial design
      applications and registered industrial designs; license agreements related
      to any of the foregoing and income therefrom; books, records, writings,
      computer tapes or disks, flow diagrams, specification sheets, computer
      software, source codes, object codes, executable code, data, databases and
      other physical manifestations, embodiments or incorporations of any of the
      foregoing; the right to sue for all past, present and future infringements
      of any of the foregoing; all other intellectual property; and all common
      law and other rights throughout the world in and to all of the foregoing.

                                      A-12
<PAGE>
            Interest Period - as applicable to any LIBOR Portion, a period
      commencing on the date such LIBOR Portion is advanced, continued or
      converted, and ending on the date which is one (1) month, two (2) months,
      three (3) months, or six (6) months later, as may then be requested by
      Borrower; provided that (i) any Interest Period which would otherwise end
      on a day which is not a Business Day shall end in the next preceding or
      succeeding Business Day as is Agent's custom in the market to which such
      LIBOR Portion relates; (ii) there remains a minimum of one (1) month, two
      (2) months, three (3) months or six (6) months (depending upon which
      Interest Period Borrower selects) in the Term, unless Borrower and Lenders
      have agreed to an extension of the Term beyond the expiration of the
      Interest Period in question; and (iii) all Interest Periods of the same
      duration which commence on the same date shall end on the same date.

            Junior Intercreditor Agreement - the Collateral Agency and Second
      Lien Intercreditor Agreement of even date herewith among the collateral
      agent thereunder, the indenture trustee under the Exchange Note Indenture
      and the indenture trustee under the Exchange Bond Indenture.

            Junior Security Documents - the deeds of trust, security agreements
      and other agreements, instruments and documents now or hereafter securing
      all or any portion of the Indebtedness under the Exchange Indentures.

            LC Amount - at any time, the aggregate undrawn face amount of all
      Letters of Credit and LC Guaranties then outstanding.

            LC Guaranty - any guaranty pursuant to which Agent or any Affiliate
      of Agent shall guaranty the payment or performance by Borrower of its
      reimbursement obligation under any standby letter of credit.

            LC Obligations - any Obligations that arise from any draw against
      any Letter of Credit or against any Letter of Credit supported by an LC
      Guaranty.

            Letter of Credit - any standby letter of credit issued by Agent or
      any Affiliate of Agent for the account of Borrower.

            LIBOR - as applicable to any LIBOR Portion, for the applicable
      Interest Period, the rate per annum (rounded upward, if necessary, to the
      nearest 1/32 of one percent) as determined on the basis of the offered
      rates for deposits in U.S. dollars, for a period of time comparable to
      such Interest Period which appears on the Telerate page 3750 as of 11:00
      a.m. (London time) on the day that is two (2) London Banking Days
      preceding the first day of such Interest Period; provided, however, if the
      rate described above does not appear on the Telerate System on any
      applicable interest determination date, the LIBOR shall be the rate
      (rounded upwards as described above, if necessary) for deposits in U.S.
      dollars for a period substantially equal to the Interest Period on the
      Reuters Page "LIBO" (or such other page as may replace the LIBO Page on
      that service for the purpose of displaying such rates), as of 11:00 a.m.

                                      A-13
<PAGE>
      (London Time), on the day that is two (2) London Banking Days prior to the
      first day of such Interest Period. If both the Telerate and Reuters
      systems are unavailable, then the rate for that date will be determined on
      the basis of the offered rates for deposits in U.S. dollars for a period
      of time comparable to such Interest Period which are offered by four (4)
      major banks in the London interbank market at approximately 11:00 a.m.
      (London time), on the day that is two (2) London Banking Days preceding
      the first day of such Interest Period as selected by Agent. The principal
      London office of each of the major London banks so selected will be
      requested to provide a quotation of its U.S. dollar deposit offered rate.
      If at least two (2) such quotations are provided, the rate for that date
      will be the arithmetic mean of the quotations. If fewer than two
      quotations are provided as requested, the rate for that date will be
      determined on the basis of the rates quoted for loans in U.S. dollars to
      leading European banks for a period of time comparable to such Interest
      Period offered by major banks in New York City at approximately 11:00 a.m.
      (New York City time), on the day that is two (2) London Banking Days
      preceding the first day of such Interest Period. In the event that Agent
      is unable to obtain any such quotation as provided above, it will be
      determined that LIBOR pursuant to a Interest Period cannot be determined.
      In the event that the Board of Governors of the Federal Reserve System
      shall impose a Reserve Percentage with respect to LIBOR deposits of Bank
      then for any period during which such Reserve Percentage shall apply,
      LIBOR shall be equal to the amount determined above divided by an amount
      equal to 1 minus the Reserve Percentage.

            LIBOR Interest Payment Date - the first day of each calendar month
      during and immediately following the applicable Interest Period.

            LIBOR Option - the option granted pursuant to Section 3.1 of the
      Agreement to have the interest on all or any portion of the principal
      amount of the Revolving Credit Loans based on the LIBOR.

            LIBOR Portion - that portion of the Revolving Credit Loans specified
      in a LIBOR Request (including any portion of Revolving Credit Loans which
      is being borrowed by Borrower concurrently with such LIBOR Request) which,
      as of the date of the LIBOR Request specifying such LIBOR Portion, has met
      the conditions for basing interest on the LIBOR in Section 3.1 of the
      Agreement and the Interest Period of which was commenced and not
      terminated.

            LIBOR Request - a notice in writing (or by telephone confirmed
      electronically or by telecopy or other facsimile transmission on the same
      day as the telephone request) from Borrower to Agent requesting that
      interest on a Revolving Credit Loan be based on the LIBOR, specifying: (i)
      the first day of the Interest Period (which shall be a Business Day); (ii)
      the length of the Interest Period; (iii) whether the LIBOR Portion is a
      new Loan, a conversion of a Base Rate Portion, or a continuation of a
      LIBOR Portion, and (iv) the dollar amount of the LIBOR Portion, which
      shall be in an amount not less than $1,000,000 or an integral multiple of
      $100,000 in excess thereof.

                                      A-14
<PAGE>
            Lien - any interest in Property securing an obligation owed to, or a
      claim by, a Person other than the owner of the Property, whether such
      interest is based on common law, statute or contract. The term "Lien"
      shall also include rights of seller under conditional sales contracts or
      title retention agreements, reservations, exceptions, encroachments,
      easements, rights-of-way, covenants, conditions, restrictions, leases and
      other title exceptions and encumbrances affecting Property. For the
      purpose of the Agreement, Borrower shall be deemed to be the owner of any
      Property which it has acquired or holds subject to a conditional sale
      agreement or other arrangement pursuant to which title to the Property has
      been retained by or vested in some other Person for security purposes.

            Liquidity Improvement Financing Program - the program of liquidity
      improvements to be effected by Borrower and its Subsidiaries with vendors,
      suppliers, municipal, community and other financing sources disclosed by
      Borrower to Agent and comprising one or more of (i) Foster
      Wheeler/Steamco, (ii) the Permitted RD Transaction, (iii) the Permitted GO
      Transaction, (iv) the Scrap Inventory Purchase, (v) Special
      Considerations, and (vi) the termination of the requirement that Borrower
      post a letter of credit or other collateral for Borrower's obligations
      under a certain Master Lease Agreement dated September, 1993 between
      Borrower and MBC Leasing Corp., as assignee of General Electric Capital
      Corporation (the "Lessor") and a related Agency Agreement and Letter of
      Credit Agreement, in connection with the purchase by the West Virginia
      Economic Development Authority (or its assignee) ("WVEDA") of the Lessor's
      interest in such Master Lease Agreement, Agency Agreement and Letter of
      Credit Agreement, net of any amounts payable by Borrower to Lessor or
      WVEDA in connection with such purchase or termination, pursuant to all of
      which Borrower and its Subsidiaries are seeking to obtain additional cash
      liquidity improvements of not less than $30,000,000 in the aggregate
      within 120 days of the Original Closing Date.

            Loan Account - the loan account established on the books of Agent
      pursuant to Section 3.6 of the Agreement.

            Loan Documents - the Agreement, the Other Agreements and the
      Security Documents.

            Loans - all loans and advances of any kind made by Agent, any
      Lender, or any Affiliate of Agent or any Lender, pursuant to the
      Agreement.

            London Banking Day - any date on which commercial banks are open for
      business in London, England.

            MABCO Lease - the Lease Agreement dated as of October 26, 2001
      between MABCO Steam Company, LLC and FW Holdings, Inc., with respect to
      the Foster Wheeler Steam Generating Facility and certain related assets,
      as it may be amended from time to time.

                                      A-15
<PAGE>
            Majority Lenders - as of any date, Lenders holding 51% of the
      outstanding Revolving Loan Commitments determined on a combined basis and
      following the termination of the Revolving Loan Commitments, Lenders
      holding 51% or more of the outstanding Loans, LC Amounts and LC
      Obligations not yet reimbursed by Borrower or funded with a Revolving
      Credit Loan; provided, that (i) in each case, if there are 3 or more
      Lenders with outstanding Loans, LC Amounts, unfunded and unreimbursed LC
      Obligations or Revolving Loan Commitments, at least 3 Lenders shall be
      required to constitute Majority Lenders; and (ii) prior to termination of
      the Revolving Loan Commitments, if any Lender breaches its obligation to
      fund any requested Revolving Credit Loan, for so long as such breach
      exists, its voting rights hereunder shall be calculated with reference to
      its outstanding Loans, LC Amounts and unfunded and unreimbursed LC
      Obligations, rather than its Revolving Loan Commitment.

            Material Adverse Effect - (i) a material adverse effect on the
      business, condition (financial or otherwise), operation, performance or
      properties of Borrower and its Subsidiaries, taken as a whole, (ii) a
      material adverse effect on the rights and remedies of Agent or Lenders
      under the Loan Documents, or (iii) the material impairment of the ability
      of Borrower and its Subsidiaries to perform their obligations hereunder or
      under any Loan Document.

            Material Subsidiary - any of Borrower's Subsidiaries that (i) has
      net income (excluding extraordinary gains) for any fiscal quarter that is
      greater than 1% of the aggregate consolidated net income of Borrower and
      its Subsidiaries for such fiscal quarter, (ii) the net book value of whose
      assets at any time is greater than or equal to 1% of the aggregate
      consolidated net book value of the assets of Borrower and its Subsidiaries
      at such time or (iii) in Agent's reasonable judgment at any time has
      material business operations.

            Money Borrowed - means, (i) Indebtedness arising from the lending of
      money by any Person to Borrower or any of its Subsidiaries; (ii)
      Indebtedness, whether or not in any such case arising from the lending by
      any Person of money to Borrower or any of its Subsidiaries, (1) which is
      represented by notes payable or drafts accepted that evidence extensions
      of credit, (2) which constitutes obligations evidenced by bonds,
      debentures, notes or similar instruments, or (3) upon which interest
      charges are customarily paid (other than accounts payable) or that was
      issued or assumed as full or partial payment for Property; (iii)
      Indebtedness that constitutes a Capitalized Lease Obligation; (iv)
      reimbursement obligations with respect to letters of credit or guaranties
      of letters of credit and (v) Indebtedness of Borrower or any of its
      Subsidiaries under any guaranty of obligations that would constitute
      Indebtedness for Money Borrowed under clauses (i) through (iii) hereof, if
      owed directly by Borrower or any of its Subsidiaries. Money Borrowed shall
      not include trade payables or accrued expenses.

            Mortgages - the Deed of Trust executed by Borrower on or about the
      Original Closing Date in favor of Agent, for the benefit of itself and
      Lenders, by which

                                      A-16
<PAGE>
      Borrower has granted to Agent, as security for the Obligations, a Lien
      upon the real Property of Borrower located at the No. 9 Tandem Mill, the
      Deed of Trust executed by Borrower on or about the Effective Date in favor
      of Agent, for the benefit of itself and Lenders, by which Borrower has
      granted to Agent, as security for the Obligations, a Lien upon the real
      Property of Borrower included within the Tin Mill Collateral, the Deed of
      Trust executed by Borrower on or about the Effective Date in favor of
      Agent, for the benefit of itself and Lenders, by which Borrower has
      granted to Agent, as security for the Obligations, a Lien upon the real
      Property of Borrower included within the Hot Mill Collateral, and all
      other mortgages, deeds of trust and comparable documents now or at any
      time hereafter securing the whole or any part of the Obligations.

            Multiemployer Plan - has the meaning set forth in Section 4001(a)(3)
      of ERISA.

            No. 9 Tandem Mill - the Property, inclusive of fence, buildings,
      other improvements, fixtures and Equipment located in Borrower's Strip
      Steel Department at its mill in Weirton, West Virginia, as more
      particularly described and depicted in the Mortgage.

            Net Cash Proceeds - as defined in the Exchange Note Indenture, as in
      effect on the date hereof and as amended, supplemented or otherwise
      modified with the consent of Majority Lenders.

            Notes - collectively, the Revolving Notes.

            Obligations - all Loans, all LC Obligations and all other advances,
      debts, liabilities, obligations, covenants and duties, together with all
      interest, fees and other charges thereon, owing, arising, due or payable
      from Borrower to Agent, for its own benefit, from Borrower to Agent for
      the benefit of any Lender, from Borrower to any Lender or from Borrower to
      Bank or any other Affiliate of Agent, of any kind or nature, present or
      future, whether or not evidenced by any note, guaranty or other
      instrument, whether arising under the Agreement or any of the other Loan
      Documents, whether direct or indirect (including those acquired by
      assignment), absolute or contingent, primary or secondary, due or to
      become due, now existing or hereafter arising and however acquired,
      including without limitation any Derivative Obligations or Product
      Obligations owing to Agent, any Lender, Bank or any other Affiliate of
      Agent.

            Organizational I.D. Number - with respect to any Person, the
      organizational identification number assigned to such Person by the
      applicable governmental unit or agency of the jurisdiction of organization
      of such Person.

            Original Closing Date - November 1, 2001.

                                      A-17
<PAGE>
            Other Agreements - any and all agreements, instruments and documents
      (other than the Agreement and the Security Documents), heretofore, now or
      hereafter executed by Borrower, any Subsidiary of Borrower or any other
      third party and delivered to Agent or any Lender in respect of the
      transactions contemplated by the Agreement.

            Overadvance - the amount, if any, by which the unpaid balance of
      Revolving Credit Loans plus the sum of the LC Amount plus the amount of LC
      Obligations that have not been reimbursed by Borrower or funded with a
      Revolving Credit Loan, plus reserves, exceeds the Borrowing Base.

            Permitted Acquisition - as defined in the Exchange Note Indenture,
      as in effect on the date hereof and as amended, supplemented or otherwise
      modified with the consent of Majority Lenders.

            Permitted CMS Transaction - a sale by Borrower of the CMS Assets to
      one or more Persons, so long as (i) such sale is for fair market value,
      (ii) the terms of such sale are commercially reasonable and customary for
      transactions of that type at the time of consummation thereof, (iii) the
      consideration for such sale is a combination of cash and future services
      to be provided to Borrower, (iv) no Event of Default is then in existence
      and (v) the net cash proceeds of such sale are promptly delivered to Agent
      for application against the then-outstanding principal balance of the
      Revolving Credit Loans.

            Permitted Distributions - payments made by Borrower in satisfaction
      of any put right in respect of Borrower's Securities authorized and
      outstanding on the Original Closing Date exercised by a participant in
      either Stock Plan, but only to the extent that (i) such payment is
      required to be made under Section 409 of the Code and (ii) such payment
      has been deferred by Borrower to the full extent legally permissible under
      the Code and the terms of the applicable Stock Plan.

            Permitted Liens - any Lien of a kind specified in subsection 8.2.5
      of the Agreement.

            Permitted GO Transaction - a sale by Borrower of the GO Facility to
      one or more Persons and the lease of such facility by Borrower giving rise
      to a Capitalized Lease Obligation, so long as (i) such sale is for fair
      market value, (ii) the terms of such sale and lease are commercially
      reasonable and customary for transactions of that type at the time of
      consummation thereof, (iii) the lessor delivers to Agent a landlord's
      agreement with respect to the GO Facility in form and substance reasonably
      acceptable to Agent, (iv) no Event of Default is then in existence and (v)
      the net cash proceeds of such sale are promptly delivered to Agent for
      application against the then-outstanding principal balance of the
      Revolving Credit Loans.

            Permitted Note Exchange Offer - collectively, exchange offers to be
      made by Borrower and the City of Weirton, West Virginia to the holders of
      (i) both issues of

                                      A-18
<PAGE>
      the Senior Notes and (ii) the Bonds, as the case may be, wherein such
      Person offers to exchange and accepts for exchange, up to the entire
      outstanding principal amount of such securities, on terms and conditions
      consistent in all material respects with the Registration Statement or
      otherwise in accordance with those terms and conditions approved by Agent
      and Lenders. With the execution of this Agreement, the side letter dated
      the Original Closing Date executed by Agent, Syndication Agent, each
      Documentation Agent, each Lender and Borrower with respect to the terms of
      the Permitted Note Exchange Offer is deemed to be terminated in all
      respects.

            Permitted Purchase Money Indebtedness - Purchase Money Indebtedness
      of Borrower incurred after the date hereof which is secured by a Purchase
      Money Lien and the principal amount of which, when aggregated with the
      principal amount of all other such Indebtedness and Capitalized Lease
      Obligations of Borrower and its Subsidiaries at the time outstanding, does
      not exceed $5,000,000, plus the aggregate amount of such Indebtedness and
      Capitalized Lease Obligations incurred on or prior to the Original Closing
      Date in connection with the Liquidity Improvement Financing Program. For
      the purposes of this definition, the principal amount of any Purchase
      Money Indebtedness consisting of capitalized leases (as opposed to
      operating leases) shall be computed as a Capitalized Lease Obligation.

            Permitted RD Transaction - a sale by Borrower of the RD Facility to
      one or more Persons and, if Borrower so determines, the lease of such
      facility by Borrower giving rise to a Capitalized Lease Obligation, so
      long as (i) such sale is for fair market value, (ii) the terms of such
      sale and lease, if any, are commercially reasonable and customary for
      transactions of that type at the time of the consummation thereof, (iii)
      if applicable, the lessor delivers to Agent a landlord's agreement with
      respect to the RD Facility in form and substance reasonably acceptable to
      Agent, (iv) no Event of Default is then in existence and (v) the net cash
      proceeds of such sale are promptly delivered to Agent for application
      against the then-outstanding principal balance of the Revolving Credit
      Loans.

            Permitted Tandem Mill Transaction - either (i) a sale by Borrower of
      the Tandem Mill Collateral to one or more Persons and the concurrent lease
      of such facility by Borrower giving rise to a Capitalized Lease Obligation
      or (ii) another type of financing transaction pursuant to which Borrower
      incurs Indebtedness for Money Borrowed secured by up to $90,000,000 of
      senior Liens on the Tandem Mill Collateral, which, in either case (a)
      generates net cash proceeds of not less than $50,000,000 and (b) has terms
      and conditions, and is evidenced by agreements, instruments and documents,
      satisfactory to Agent and all Lenders, in their reasonable credit
      judgment. Notwithstanding the foregoing, in exercising their reasonable
      credit judgment in connection with approval of a Permitted Tandem Mill
      Transaction proposed by Borrower, Agent and Lenders will not utilize, as a
      basis for disapproving or withholding any approval or consent to be given
      to permit such transaction, the fact that Borrower intends to employ a
      portion of the proceeds to be derived from such transaction in accordance
      with one or more of the Exchange Indentures providing for

                                      A-19
<PAGE>
      payments to be made in respect of the Exchange Notes or the Series C
      Preferred upon certain dispositions of Collateral.

            Person - an individual, partnership, corporation, limited liability
      company, joint stock company, land trust, business trust, or
      unincorporated organization, or a government or agency or political
      subdivision thereof.

            Plan - an employee benefit plan now or hereafter maintained for
      employees of Borrower or any of its Subsidiaries that is covered by Title
      IV of ERISA.

            Pledged Account - as defined in subsection 3.3.1 of the Agreement.

            Product Obligations - every obligation of Borrower under and in
      respect of any one or more of the following types of services or
      facilities extended to Borrower by Bank, Agent or any Affiliate of Bank or
      Agent: (i) credit cards, (ii) cash management or related services
      including the automatic clearing house transfer of funds for the account
      of Borrower pursuant to agreement or overdraft and (iii) cash management,
      including controlled disbursement services.

            Project Assets - all of the pollution control Equipment and Fixtures
      located at Borrower's Weirton, West Virginia steel-making facility, the
      purchase and/or installation of which were financed or refinanced with the
      proceeds of the Bonds.

            Projections - Borrower's forecasted Consolidated (i) balance sheets,
      (ii) profit and loss statements, (iii) cash flow statements, and (iv)
      capitalization statements, all prepared on a consistent basis with the
      historical financial statements of Borrower and its Subsidiaries, together
      with appropriate supporting details and a statement of underlying
      assumptions and subject to such qualifications as Borrower customarily
      includes in its projections for financial purposes.

            Property - any interest in any kind of property or asset, whether
      real, personal or mixed, or tangible or intangible.

            Purchase Money Indebtedness - means and includes (i) Indebtedness
      (other than the Obligations) for the payment of all or any part of the
      purchase price of any fixed assets, (ii) any Indebtedness (other than the
      Obligations) incurred at the time of or within 10 days prior to or after
      the acquisition of any fixed assets for the purpose of financing all or
      any part of the purchase price thereof, and (iii) any renewals, extensions
      or refinancings thereof, but not any increases in the principal amounts
      thereof outstanding at the time.

            Purchase Money Lien - a Lien upon fixed assets which secures
      Purchase Money Indebtedness, but only if such Lien shall at all times be
      confined solely to the fixed assets the purchase price of which was
      financed through the incurrence of the Purchase Money Indebtedness secured
      by such Lien.

                                      A-20
<PAGE>
            RD Facility - Borrower's Research and Development Facility located
      on Three Springs Drive, Weirton, West Virginia.

            Registration Statement - Borrower's S-4 Registration Statement
      attached to the Agreement as Exhibit A-1.

            Reportable Event - any of the events set forth in Section 4043(b) of
      ERISA.

            Reserve Percentage - the maximum aggregate reserve requirement
      (including all basic, supplemental, marginal and other reserves) which is
      imposed on member banks of the Federal Reserve System against
      "Euro-currency Liabilities" as defined in Regulation D.

            Restricted Investment - any investment made in cash or by delivery
      of Property to any Person, whether by acquisition of stock, Indebtedness
      or other obligation or Security, or by loan, advance or capital
      contribution, (including without limitation a loan, advance or capital
      contribution in connection with any joint venture investment) or
      otherwise, or in any Property except the following:

                  (i) investments by Borrower, to the extent existing on the
            Original Closing Date, in one or more Subsidiaries of Borrower;

                  (ii) Property to be used in the ordinary course of business;

                  (iii) Current Assets arising from the sale of goods and
            services in the ordinary course of business of Borrower or any of
            its Subsidiaries;

                  (iv) investments made and maintained only at such time as
            there are no Loans outstanding, in direct obligations of the United
            States of America, or any agency thereof or obligations guaranteed
            by the United States of America, provided that such obligations
            mature within one year from the date of acquisition thereof;

                  (v) investments made and maintained only at such time as there
            are no Loans outstanding, in certificates of deposit maturing within
            one year from the date of acquisition and fully insured by the
            Federal Deposit Insurance Corporation;

                  (vi) investments made and maintained only at such time as
            there are no Loans outstanding, in commercial paper given a rating
            of not lower than A-2/P-2 by a national credit rating agency and
            maturing not more than 270 days from the date of creation thereof;

                  (vii) investments made and maintained only at such time as
            there are no Loans outstanding, in money market, mutual or similar
            funds having assets in excess of $100,000,000 and the investments of
            which are limited to investment grade securities;

                                      A-21
<PAGE>
                  (viii) investments existing on the date hereof and listed on
            Exhibit 8.2.12 hereto; and

                  (ix) investments otherwise expressly permitted pursuant to the
            Agreement.

            Revolving Credit Loan - a Loan made by any Lender pursuant to
      Section 1.1 of the Agreement.

            Revolving Credit Maximum Amount - $200,000,000, as such amount may
      be reduced from time to time pursuant to the terms of the Agreement.

            Revolving Loan Commitment - with respect to any Lender, the amount
      of such Lender's Revolving Loan Commitment pursuant to subsection 1.1.1 of
      the Agreement, as set forth below such Lender's name on the signature page
      hereof.

            Revolving Loan Percentage - with respect to each Lender, the
      percentage equal to the quotient of such Lender's Revolving Loan
      Commitment divided by the aggregate of all Revolving Loan Commitments.

            Revolving Notes - the Secured Promissory Notes executed by Borrower
      on or about the Original Closing Date in favor of each Lender to evidence
      the Revolving Credit Loans, which shall be in the form of Exhibit 1.1 to
      the Agreement, together with any replacement or successor notes therefor.

            Scrap Inventory Purchase - the purchase of certain of Borrower's
      scrap Inventory in July, 2001 by Herman Strauss, Inc. Iron and Steel Scrap
      Metals for a purchase price of $1,110,000.

            Security - all shares of stock, partnership interests, membership
      interests, membership units or other ownership interests in any other
      Person and all warrants, options or other rights to acquire the same.

            Security Documents - the Guaranty Agreements, the Mortgages and all
      other instruments and agreements now or at any time hereafter securing the
      whole or any part of the Obligations.

            Senior Notes - collectively, the 2004 Senior Notes and the 2005
      Senior Notes.

            Series C Preferred - Borrower's Series C Junior Redeemable
      Convertible Preferred Stock issued in connection with the Permitted Note
      Exchange Offer, which, among other things, is unsecured, has no voting
      rights or put rights, is not mandatorily redeemable prior to April 1, 2013
      and is not subject to the issuance of dividends.

            Solvent - as to any Person, that such Person (i) owns Property whose
      fair saleable value is greater than the amount required to pay all of such
      Person's Indebtedness (including contingent debts), (ii) is able to pay
      all of its Indebtedness as

                                      A-22
<PAGE>
      such Indebtedness matures and (iii) has capital sufficient to carry on its
      business and transactions and all business and transactions in which it is
      about to engage.

            Special Considerations - one or more modifications to, restatement
      of the terms of, or replacement for, any agreement, arrangement or
      relationship existing prior to the Original Closing Date between Borrower
      or any Subsidiary on the one hand and any vendor, supplier, other Person
      furnishing goods or services or any lender, creditor or similar obligee
      (including any governmental unit) on the other hand, providing for the
      prices to be paid by Borrower or such Subsidiary for such goods or
      services to be decreased, or discounts to be taken or increased, or
      payment to be deferred, or for any forgiveness or reduction of amounts or
      obligations owed or otherwise payable by Borrower or such Subsidiary, in
      each case not included as part of Foster Wheeler/Steamco and in each case
      reasonably acceptable to Agent.

            Stock Plans - collectively, Borrower's 1984 Employee Stock Ownership
      Plan and Borrower's 1989 Employee Stock Ownership Plan, as each existed on
      the Original Closing Date.

            Subordinated Debt - Indebtedness of Borrower or any Subsidiary of
      Borrower that is subordinated to the Obligations in a manner satisfactory
      to Agent, and contains terms, including without limitation, payment terms,
      satisfactory to Majority Lenders.

            Subsidiary - any Person of which another Person owns, directly or
      indirectly through one or more intermediaries, more than 50% of the Voting
      Stock at the time of determination.

            Swingline Loans - as defined in subsection 1.1.5 of the Agreement.

            Syndication Agent - Foothill Capital Corporation, in its capacity as
      syndication agent under the Agreement.

            Tandem Mill Collateral - the real Property constituting Borrower's
      No. 9 Tandem Mill located at Borrower's Weirton, West Virginia
      steel-making facility and which is legally described on Exhibit A-2
      attached to the Agreement, together with all Equipment and Fixtures now or
      hereafter located thereon (whether or not later moved), including without
      limitation the Equipment listed on Exhibit A-3 attached to the Agreement.

            Tandem Mill Financing Proceeds - means the cash proceeds of an
      Approved Financing Transaction, net of all legal, title and recording tax
      expenses, commissions and other fees and expenses incurred in connection
      with such Approved Financing Transaction.

            Tandem Mill Sale Proceeds - means the cash proceeds of an Approved
      Sale and Leaseback relating to the Tandem Mill Collateral, net of all
      legal, title and recording tax expenses, commissions and other fees and
      expenses incurred in

                                      A-23
<PAGE>
      connection with such Approved Sale and Leaseback and any capital gains
      taxes incurred in connection with such Approved Sale and Leaseback.

            Tandem Mill Subfacility - the Loan in the aggregate amount of
      $25,000,000 described in Section 1.3 of the Agreement.

            Tandem Mill Subfacility Loan Notes - the Secured Promissory Notes
      executed by Borrower on or about the Original Closing Date in favor of
      each applicable Lender to evidence its Tandem Mill Subfacility, together
      with any replacement or successor notes therefor.

            Term - as defined in Section 4.1 of the Agreement.

            Tin Mill Collateral - the real Property constituting Borrower's Tin
      Mill located at Borrower's Weirton, West Virginia steel-making facility
      and which is legally described on Exhibit A-6 attached to the Agreement,
      together with all Equipment and Fixtures now or hereafter located thereon
      (whether or not later moved), including without limitation the Equipment
      listed on Exhibit A-7 attached to the Agreement; provided, however, that
      the Equipment referred to in clause (iii) of the definition of the term
      CMS Assets contained herein shall not constitute Tin Mill Collateral.

            Total Credit Facility - $200,000,000, as reduced from time to time
      pursuant to the terms of the Agreement.

            Transportation Equipment - the railroad locomotives and railcars
      owned by Borrower and listed on Exhibit A-8.

            Type of Organization - with respect to any Person, the kind or type
      of entity by which such Person is organized, such as a corporation or
      limited liability company.

            UCC - the Uniform Commercial Code as in effect in the State of
      Illinois on the date of this Agreement, as it may be amended or otherwise
      modified.

            Unused Line Fee - as defined in Section 2.5 of the Agreement.

            Voting Stock - Securities of any class or classes of a corporation,
      limited partnership or limited liability company or any other entity the
      holders of which are ordinarily, in the absence of contingencies, entitled
      to vote with respect to the election of corporate directors (or Persons
      performing similar functions).

            OTHER TERMS. All other terms contained in the Agreement shall have,
when the context so indicates, the meanings provided for by the UCC to the
extent the same are used or defined therein.

            CERTAIN MATTERS OF CONSTRUCTION. The terms "herein", "hereof" and
"hereunder" and other words of similar import refer to the Agreement as a whole
and not to any particular section, paragraph or subdivision. Any pronoun used
shall be deemed to cover all

                                      A-24
<PAGE>
genders. The section titles, table of contents and list of exhibits appear as a
matter of convenience only and shall not affect the interpretation of the
Agreement. All references to statutes and related regulations shall include any
amendments of same and any successor statutes and regulations. All references to
any of the Loan Documents shall include any and all modifications thereto and
any and all extensions or renewals thereof.

                                      A-25

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