Document:

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                                                                    Exhibit 10.2

                             REIMBURSEMENT AGREEMENT

                  THIS AGREEMENT is made as of the 12th day of July, 2001 by and
between SPECIAL METALS CORPORATION, a Delaware corporation, having its principal
office in New Hartford, New York, United States of America (hereinafter referred
to as "SMC"), and SPECIAL METALS SARL, a societe anonyme organized under the law
of the Republic of France, having its principal office in Paris, France
(hereinafter referred to as "SARL").

                              W I T N E S S E T H :

                  WHEREAS, SMC , on behalf of itself and its direct and indirect
subsidiaries, including SARL, has entered into an Agreement For Executive
Services with Phillipe Choppin de Janvry (the "Executive") dated as of July 12,
2001 (the "Executive Services Agreement"); and

                  WHEREAS, pursuant to the Executive Services Agreement SMC has
agreed to direct SARL to make certain payments to the Executive for his
services; and

WHEREAS, SARL is willing to make payments to the Executive as directed by SMC,
provided that SMC reimburses SARL for the amount of all such payments.

                  NOW, THEREFORE, the parties hereto, intending to be legally
bound, hereby mutually covenant and agree as follows:

                  1. As directed by SMC, SARL shall make payments to the
Executive pursuant to the Executive Services Agreement.

                  2. SMC shall promptly reimburse SARL for all such payments
made to the Executive pursuant to SMC's direction.

                  3. This Agreement supersedes any and all other Agreements,
either oral or written, between the parties with respect to the subject matter
hereof. Any modification of this Agreement shall be effective only if it be in
writing, signed by the party sought to be charged.

                  4. This Agreement may not be assigned without the express
written consent of the other party.

                  5. The laws of the State of New York, United States of America
shall govern this Agreement.

                  6. This Agreement may be separately executed in counterparts.

                    [signature page begins on the next page]
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IN WITNESS WHEREOF, each of the parties hereto has caused this Reimbursement
Agreement to be duly executed by its proper representatives as of the day and
year first above written.

                       SPECIAL METALS CORPORATION

                       By:  /s/ Robert F. Dropkin
                            ---------------------

                       Name:  Robert F. Dropkin
                              -----------------

                       Title: Vice-President, Secretary and Chief Legal Counsel
                              -------------------------------------------------

                       SPECIAL METALS SARL

                       By:  /s/ Edouard Duval
                            ---------------------
                       Name: Edouard Duval
                             --------------------
                       Title: Gerant
                              -------------------<PAGE>   1

                                                                    Exhibit 10.3

                              CONSIGNMENT AGREEMENT

         THIS AGREEMENT, made this 1st day of January, 2001, ("Effective Date")
by and between ERAMET MARIETTA INC., a Delaware corporation ("Consignor") and
SPECIAL METALS CORP. with principal places of business located at Huntington,
W.V. and New Hartford, N.Y. ("Consignee").

         WHEREAS, Consignor manufactures, fabricates and distributes certain
manganese and chromium products, as set forth on Exhibit A hereto (the
"Products"); and

         WHEREAS, Consignee desires to receive from the Consignor, Products for
sale and storage at facilities owned and maintained by Consignee at the
locations set forth on Exhibit B hereto (the "Facility" or collectively, the
"Facilities"), and Consignor desires to consign to Consignee the Products for
sale and storage at the Facilities upon the terms and conditions set forth
herein;

         NOW, THEREFORE, in consideration of the premises and mutual covenants,
conditions, stipulations and agreements herein contained, the adequacy and
sufficiency of which are hereby acknowledged, and intending to be legally bound,
the parties agree as follows:

1.       Consignment of Products.

         (a)      Consignor shall ship to Consignee, FOB Consignee's Facilities,
                  on consignment, the Products set forth on Exhibit A, hereto.
                  Exhibit A also sets forth the price and other terms for sale
                  not provided for below for each type of Product consigned to
                  Consignee, including the total consideration due to Consignee
                  for each Product sold. Any and all additional Products
                  delivered by Consignor to Consignee shall be described on
                  additional Exhibits to this Agreement and upon the acceptance
                  of the terms of such Exhibits by the Consignee, as shall be
                  evidenced by the signature of an authorized officer of the
                  Consignee on such Exhibits, shall be made a part of this
                  Agreement. All Products so delivered are subject to all the
                  terms and conditions hereto.

         (b)      Consignee shall receive the Products and shall store them at
                  the Facilities, or such other place as the parties may agree
                  in writing, in a careful and proper manner, in an area
                  specifically designated and set aside for such Products,
                  segregated and identified in the manner set forth in
                  Paragraphs 6 and 11 below, as to protect the Products from
                  damage, loss or deterioration.

         (c)      Consignee shall: (i) identify such Products as the property of
                  the Consignor; (ii) pay all expenses incident to the storage
                  and sale of the Products, including, but not limited to all
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                  expenses of carting, handling, storage, selling, delivering to
                  customers, and using the Products, and all taxes and other
                  charges assessed and levied on the Products while in the
                  Consignee's possession; and (iii) promptly issue a written
                  receipt for the Products received by it, specifying the type,
                  quantity and condition of the Products and the Facility at
                  which the Products are stored.

2.       Title to Products.

         (a)      Consignee agrees to accept possession of the Products on
                  consignment only, and to sell the Products on behalf of the
                  Consignor. Title to the Products shall remain in the Consignor
                  until the Products are sold, at which time title shall pass
                  from the Consignor to the purchaser of the Products. Consignee
                  shall at no time be deemed a purchaser of the Products or to
                  have any interest therein, legal or equitable unless the
                  Consignee purchases such Products for its own account or uses
                  the Products for its own account. If the Consignee purchases
                  or uses the Products for its own account, then at such time
                  the Consignee shall be deemed to be the purchaser of the
                  Products and title for such Products shall pass to the
                  Consignee.

         (b)      Consignee shall have the right to display the Products solely
                  in connection with their sale in the ordinary course of the
                  Consignee's business, and shall have the power to transfer
                  Consignor's rights to the Products only to a buyer in the
                  ordinary course of business who takes physical possession of
                  the Products or who directs that the Products be removed from
                  consignment to another location.

3.       Loss or Damage to Products. Consignee shall be responsible to and shall
         reimburse Consignor for all loss and expense to the Consignor resulting
         from damage to or loss, theft, deterioration, contamination or
         destruction of the Products, or from levy or attachment of any court
         process or lien thereon, while in Consignee's possession and until such
         time as title passes from the Consignor by reason of sale of the
         Products or use by the Consignee thereof and proceeds from the sale or
         use have been accounted for and remitted to the Consignor.

4.       Report of Sales. Within three (3) days after the last day of each
         calendar month, Consignee shall deliver a report ("Monthly Report") to
         the Consignor (i) listing all sales and uses of the Products made by
         the Consignee as of the last day of the previous calendar month in
         units of Products sold and/or used and location of sale and/or use; and
         (ii) an inventory of the Products as of the last day of the previous
         calendar month. In addition, the Monthly Report shall indicate the
         locations where the Products are situated and the amounts and
         categories at such location. The Monthly Report shall be delivered to
         the Consignor by facsimile, at 412-262-8762, 8763 or 8764, or by such
         other method agreed to by the parties.

5.       Invoices. Within ten (10) days following receipt of each Monthly
         Report, Consignor shall deliver an invoice to the Consignee ("Invoice")
         by facsimile, at 304-526-5984 for Huntington and 315-798-6802 for New
         Hartford, or by such other method agreed to by the parties, covering
         the sales and/or uses shown in the Monthly Report for the previous
         calendar month, in accordance with the prices set forth on Exhibit A or
         such later Exhibit as may contain prices with respect to the Products
         sold. Consignee agrees to pay to Consignor the amounts set forth on
         each Invoice, as calculated herein, without regard to whether or not
         the Consignee has received payment, in part
<PAGE>   3
         or in full for such Products and which amounts shall, unless otherwise
         agreed to in writing by the parties, be due and owing by the Consignee
         to Consignor on the last day of the month in which such Invoice is
         delivered.

6.       Records; Segregation of Products. Consignee shall keep a true record of
         the Products in its possession under consignment and shall give the
         representatives of Consignor access to such records on demand.
         Consignee shall permit such representatives, at reasonable times, to
         make inventories of the Products in possession of the Consignee. Using
         commercially reasonable efforts, Consignee shall keep the Products on
         consignment hereunder in such a manner that they shall be
         distinguishable and segregated from other goods of the Consignee.

7.       Liens, Encumbrances and Indemnity.

         (a)      Consignee shall maintain the Products free and clear of and
                  from all liens and encumbrances of any nature whatsoever.
                  Consignee shall indemnify and hold harmless Consignor from and
                  against any loss, cost or damage to the Products, including
                  but not limited to, reasonable attorneys fees incurred by
                  Consignor in the event that the Consignee breaches this
                  Paragraph 7.

         (b)      In order to induce the Consignor to enter into this Agreement,
                  Consignee hereby represents and warrants, with the knowledge
                  that the Consignor will rely on such a representation and
                  warranty, that the only parties who have or who may claim a
                  security interest in the inventory of the Consignee are set
                  forth on Exhibit C, hereto.

8.       No Authority to Act for Consignor. Consignee shall conduct the entire
         business of selling/using the Products in Consignee's name and at
         Consignee's cost and expense, and nothing contained herein shall
         authorize or empower Consignee to assume or create any obligation or
         responsibility whatsoever, expressed or implied, on behalf of or in the
         name of Consignor, or to bind Consignor in any manner, or make any
         representation, warranty, or commitment on behalf of Consignor.

9.       Term. This Agreement shall remain in force, commencing on the Effective
         Date, until either party gives to the other party thirty (30) days'
         written notice of its intention to terminate this Agreement. During the
         thirty (30) days after such notice, Consignee shall continue to sell,
         in accordance with the other terms of this Agreement, the Products in
         its possession and make deliveries of all Products sold in accordance
         with this Agreement. Upon the expiration of such thirty (30) days, this
         Agreement shall terminate. Notwithstanding any of the foregoing,
         Consignor may terminate this Agreement without prior notice in the
         event that Consignee violates any term of this Agreement or in the
         event that Consignor becomes dissatisfied with the financial stability
         of the Consignee, and Consignor shall in any event have the right to
         remove Products from the Facilities of the Consignor or any other
         locations where the Products may be located, at any time whatsoever.
         Upon termination of this Agreement, Consignee shall return all Products
         to Consignor or to Consignor's nominee in accordance with Consignor's
         instructions and shall pay Consignor for all Products not returned, at
         the prices for such Products specified in Exhibit A or
<PAGE>   4
         such other Exhibits as may be applicable. The expense of the return
         of the Products shall be borne by the Consignee.

10.      Consignor's Rights in the Event of Consignee's Insolvency or Failure to
         Pay. If Consignee shall become insolvent or admit in writing its
         inability to pay its debts as they mature; or if Consignee applies for,
         or consents to, or acquiesces in the appointment of a trustee or
         receiver for itself or any of its properties or assets; or, in the
         absence of any such action, if a trustee or receiver is appointed for
         Consignee or for a substantial part of its properties or assets; or if
         any bankruptcy, reorganization, debt arrangement or any other
         proceeding under any bankruptcy or insolvency law, or any dissolution
         or liquidation proceeding, is instituted by or against Consignee, and,
         if instituted against the Consignee, is consented to or acquiesced to
         by Consignee, or if Consignee fails to make payment when due of any sum
         owing to Consignor pursuant to this Agreement; then and in any such
         event, Consignor may, without further notice to Consignee, remove or
         cause to be removed Consignor's Products from the Facilities and all
         other locations of Consignee and Consignee shall forthwith pay
         Consignor in full for any amounts owing to Consignor.

11.      Identification. Consignee shall place and maintain at all times during
         the term of this Agreement, at or adjacent to the place where
         Consignor's Products are kept, one or more notices, conspicuously
         displayed, identifying the Products as belonging to Consignor and
         reading as follows:

                  All products of ERAMET MARIETTA INC. stored here belong to,
                  ERAMET MARIETTA INC. and are in the possession of the
                  undersigned on consignment only.

12.      Assurances of Title. Consignee agrees to execute all appropriate
         documents required by Consignor properly to evidence that Consignor is
         the legal owner of the Products consigned to Consignee, including
         Uniform Commercial Code financing statements which designate Consignor
         as owner of the Products, and such further documents as may be required
         by Consignor to implement Paragraph 13 below. Consignor is hereby
         authorized to execute and file financing statements without Consignee's
         signature in any jurisdiction in which such procedure is authorized.

13.      Security Interest.  Deleted by agreement of the two parties.

14.      Force Majeure. No liability hereunder shall result to either party from
         delay in performance or nonperformance caused by circumstances beyond
         the control of the party affected, including, but not limited to, act
         of God, fire, flood, war, government regulation, direction, or request,
         accident, strikes or labor problems or shortage or inability to obtain
         material, equipment, or transportation, or by impracticability of
         performance, except nothing herein contained shall excuse the Consignee
         of its liability to pay for Products sold, used, retained, levied
         against or unaccounted for after said Products are in its possession.

15.      Trademarks and Trade Names. Consignee shall neither register nor use
         any of Consignor's trademarks or trade names without Consignor's prior
         written approval, nor shall it repack or relabel any Products or resale
         under any other trademark or trade name, except upon prior written
         approval by the Consignor.
<PAGE>   5
16.      Independent Contractors. It is understood and agreed between the
         Consignor and Consignee that nothing herein contained shall create a
         relationship of employer and employee or principle and agent between
         the parties hereto and that the parties are and shall remain
         independent contractors.

17.      Miscellaneous Provisions.

         (a)      Governing Law. This Agreement and the transactions
                  contemplated herein shall be governed by, interpreted,
                  construed and enforced in accordance with the laws of the
                  Commonwealth of Pennsylvania without regard to its conflict of
                  laws provisions that would require the application of the
                  substantive law of any other jurisdiction.

         (b)      Entire Agreement. This Agreement, and the Exhibits, hereto and
                  any subsequent Exhibits attached hereto pursuant to Paragraph
                  1 of this Agreement, constitute the entire agreement between
                  the parties relating to the consignment of the Products
                  hereunder.

         (c)      Amendments and Modifications. This Agreement shall not be
                  modified, amended or changed in any respect except in writing
                  duly signed by an authorized officer of each of the parties
                  hereto.

         (d)      Assignment. Consignee may not assign any of its rights under
                  this Agreement without the prior written consent of Consignor.

         (e)      Captions. The captions in this Agreement are solely for the
                  purposes of reference and shall not in any manner alter or
                  vary the interpretation or construction of this Agreement.

         (f)      Successors. This Agreement shall extend to and be binding upon
                  the successors and permitted assigns of the parties hereto.

         (g)      Nonwaiver. The specified remedies to which Consignor may
                  resort under the terms of this Agreement are cumulative and
                  are not intended to be exclusive of any other remedies or
                  means or redress to which Consignor may be lawfully entitled
                  in case of any breach or threatened breach by Consignee of any
                  provisions of this Agreement. The failure of Consignor to
                  insist in any one or more instances upon the strict
                  performance of any of the terms or conditions of this
                  Agreement shall not be construed as a waiver or relinquishment
                  for the future of such term or condition.

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

19.      Notices. Any notice permitted or required to be given to the other
         party shall be deemed sufficient if mailed by certified or registered
         mail, return receipt requested, to the other party as follows; or by
         facsimile at the numbers provided in Paragraphs 4 and 5 hereto.

         (A)      If to Consignee:
                  Special Metals Corp.
                  3200 Riverside Drive
                  P.O. Box 1958
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                  Huntington,  WV  25720
                  Attention:  Mr. Daniel R. Wolfe

         (B)      If to Consignor:
                  Eramet Marietta Inc.
                  PO Box 1198
                  333 Rouser Road
                  Coraopolis,  PA  15108

or at such other addresses as the parties shall designate in writing to the
other party.

         IN WITNESS WHEREOF, the parties hereto have executed or caused to be
executed this Agreement on the day and year first above written.

<TABLE>
<S>                                    <C>
ATTEST:                                ERAMET MARIETTA, INC.

/s/   Carol J. Klimke     7/18/01      By: /s/  R. D. Craig              7/18/01
---------------------------------          -------------------------------------
Secretary                                       President
(Corporate Seal)

ATTEST:                                ERAMET NORTH AMERICA

/s/   Carol J. Klimke     7/18/01      By: /s/  Stephen R. Wilkinson     7/18/01
---------------------------------          -------------------------------------
Secretary                                       President
(Corporate Seal)

ATTEST:                                SPECIAL METALS CORPORATION

/s/   Sharon L. Miazga                 By: /s/  T. Grant John            7/25/01
---------------------------------          -------------------------------------
Assistant  Secretary                            President
(Corporate Seal)
</TABLE>
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                                    EXHIBIT A

                             DESCRIPTION OF PRODUCTS
             (including type, description, price and terms of sale)

1.   ELECTROLYTIC CHROMIUM METAL - VACUUM GRADE

2.   ELECTROLYTIC CHROMIUM METAL - REGULAR GRADE (FLAKE)
<PAGE>   8
                                    EXHIBIT B

                                   FACILITIES

1.   Special Metals Corporation, "Huntington Operations", 3200 Riverside Drive,
     P.O. Box 1958, Huntington, WV 25720

2.   Special Metals Corporation, "New Hartford Operations", 4317 Middle
     Settlement Road, New Hartford, NY 13413-5392
<PAGE>   9
                                    EXHIBIT C

              PARTIES WHO HAVE OR WHO MAY CLAIM A SECURITY INTEREST
                            IN CONSIGNEES' INVENTORY

1.   Credit Lyonnais, 1301 Avenue of the Americas, New York, NY 10019-6022

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