Document:

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                                                                    EXHIBIT 10-H

                                                               SIGNATURE VERSION
                                                                       12 AUGUST
                      ------------------------------------
                           PURCHASE AND SALE AGREEMENT
                      ------------------------------------

                        GALVATEK AMERICA CORPORATION AND
                          GALVATEK ONTARIO CORPORATION
                                       and
                        NATIONAL ONTARIO CORPORATION AND
                          NATIONAL ONTARIO II, LIMITED

                              Dated August 13, 2002

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                               TABLE OF CONTENTS

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SECTION 1.   DEFINITIONS AND INTERPRETATIONS......................................  2
      1.1    Definitions..........................................................  2
      1.2    Interpretations......................................................  6

SECTION 2.   SALE AND PURCHASE OF THE NSC INTERESTS; CONSIDERATION................  7

SECTION 3.   CLOSING..............................................................  7
     3.1     Closing..............................................................  7
     3.2     Closing Deliveries of the NSC SPVs...................................  7
     3.3     Closing Deliveries of the NKK SPVs...................................  8

SECTION 4.   CONDITIONS PRECEDENT.................................................  9
     4.1     Conditions Precedent to Obligations of the NSC SPVs..................  9
               4.1.1  Compliance with Agreement...................................  9
               4.1.2  Execution of the Forbearance Agreement, LAA and Two-Party
                      TPA.........................................................  9
               4.1.3  Bankruptcy Court Approval...................................  9

     4.2     Conditions Precedent to Obligations of the NKK SPVs..................  9
               4.2.1  Compliance with Agreement...................................  9
               4.2.2  Execution of the Forbearance Agreement, LAA and Two-Party
                      TPA.........................................................  9
               4.2.3  Bankruptcy Court Approval...................................  9
               4.2.4  Appropriate Entry on DNN Share Register.....................  9
               4.2.5  Appropriate Entry in DNNLP Record of Limited Partners.......  9
               4.2.6  Issuance of Declaration of Change........................... 10
               4.2.7  Adoption of Enabling DNN Resolutions........................ 10

SECTION 5.   COVENANTS OF THE PARTIES............................................. 10
     5.1     Mutual Covenants of the Parties...................................... 10
     5.2     Additional Covenants of NSC SPVs..................................... 10
     5.3     Additional Covenants of the NKK SPVs................................. 11

SECTION 6.   REPRESENTATIONS AND WARRANTIES....................................... 11
     6.1     Representations and Warranties of the NSC SPVs....................... 11
     6.2     Representations and Warranties of the NKK SPVs....................... 11

SECTION 7.   COSTS................................................................ 11

SECTION 8.   TERMINATION; SURVIVAL OF PROVISIONS OF  AGREEMENT.................... 11
     8.1     Termination of Agreement............................................. 11
     8.2     Survival of Provision of Agreement................................... 12
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SECTION 9.   NOTICES.............................................................. 12

     9.1     Addresses............................................................ 12
     9.2     Proof of Notice...................................................... 13

SECTION 10.  [RESERVED]........................................................... 13

SECTION 11.  GOVERNING LAW........................................................ 13

SECTION 12.  MISCELLANEOUS........................................................ 13
     12.1    Entire Agreement..................................................... 13
     12.2    Amendments........................................................... 13
     12.3    Actions Upon Breach.................................................. 13
     12.4    Waivers.............................................................. 13
     12.5    Cumulative Rights.................................................... 14
     12.6    Severability......................................................... 14
     12.7    Counterparts......................................................... 14
     12.8    Assignment........................................................... 14

Schedule 3.2 Documents to be Delivered by the NSC SPVs............................ 16

Schedule 3.3 Documents to be Delivered by the NKK SPVs............................ 17

Schedule 6.1 Warranties Relating to the NSC SPVs.................................. 18

Schedule 6.2 Warranties Relating to the NKK SPVs.................................. 20

Exhibit A [Line Access Agreement]................................................. 22

Exhibit B [Sale Approval Order]................................................... 23
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          THIS PURCHASE AND SALE AGREEMENT (this "Agreement"), dated August 13,
2002, is made by and between:

          (1)  Galvatek America Corporation, a Delaware corporation ("GAC"), and
               Galvatek Ontario Corporation, a Delaware corporation ("GOC"); and

          (2)  National Ontario Corporation, a Delaware corporation ("NOC"), and
               National Ontario II, Limited, a Delaware corporation ("NOII").

                                   RECITALS:

          A.   National Steel Corporation, a Delaware corporation ("NSC"), and
               certain of its affiliates, filed for bankruptcy protection in the
               United States on March 6, 2002.

          B.   Following notice of the resulting Financial Default of the
               Partnership Agreement made as of September 18, 1990, as amended
               by Amendment No. 1 dated as of May 31, 1991 ("LPA") among Dofasco
               Inc., a Canadian corporation ("Dofasco"), NOII, GOC and DNN
               Galvanizing Corporation, an Ontario corporation ("DNN"), by
               Dofasco to NOII on April 12, 2002, as affirmed and adopted by GOC
               on May 3, 2002, a "Matured Default" occurred on April 18, 2002.

          C.   BBK, Inc., a Michigan corporation (the "Valuator"), was appointed
               by the NKK SPVs (defined below), the appointment of which has
               been consented to by the NSC SPVs (defined below), to serve as
               the independent valuator prescribed by section [sic] 8.5(1) of
               the LPA and Section 5.4 of the SA (defined below) to determine
               the purchase price for the NSC Interests (defined below) to be
               acquired by the NKK SPVs. BBK signed an engagement letter with
               the NKK SPVs dated May 20, 2002 (the "Engagement Letter") and
               delivered its valuation of each of the NSC Interests on July 3,
               2002.

          D.   Pursuant to section 8.5(1) of the LPA, GOC must acquire the 9.5%
               Partnership Interest in DNN Galvanizing Limited Partnership
               ("DNNLP") owned by NOII and pursuant to Section 5.4 of the
               Shareholders' Agreement ("SA") made as of September 18, 1990
               among DNN, 904153 Ontario Inc., an Ontario corporation, NOC and
               GAC, GAC must acquire the 50 Class B Shares of DNN owned by NOC
               (the 50 Class B Shares together with the 9.5% Partnership
               Interest, collectively the "NSC Interests"), all in the manner
               prescribed by the LPA and in accordance with the terms set forth
               herein.

          E.   On July 9, 2002, Dofasco, NKK Corporation, a Japanese corporation
               ("NKK"), and NSC entered into a Letter Agreement the ("Letter
               Agreement") which in part extended the date on or before which
               the NSC Interests must be purchased from July 16, 2002 to August
               16, 2002. Such Letter Agreement was followed by a Forbearance
               Agreement dated as of

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               the date of this agreement entered into among Dofasco, NSC,
               the NSC SPVs and the NKK SPVs, among others (the "Forbearance
               Agreement"), which, in part, effects certain amendments to the
               LPA, SA and TPA (defined below).

          F.   The parties desire to enter into this Agreement for the purpose
               of setting out the terms for the acquisition of the NSC Interests
               and various related matters attendant therewith.

          SECTION 1. DEFINITIONS AND INTERPRETATIONS

          1.1  Definitions.

               IN THIS AGREEMENT:

               "action(s)" means claims, suits, proceedings and investigations,
               whether at law or in equity, before any court, tribunal,
               regulatory body, arbitrator,arbitration panel or Governmental
               Body.

               An "affiliate" of a person means another person, directly or
               indirectly, controlling or controlled by or under common control
               with, such person. With respect to an individual, the term
               "affiliate" shall also mean his or her spouse, parents and
               children (natural or adopted).

               "Bankruptcy Court" means the United States Bankruptcy Court for
               the Northern District of Illinois, Eastern Division.

               "Business Day" means a day during which commercial banks are open
               for business in New York, New York and in Toronto, Ontario.

               "Canadian dollar" or "CN$" means the lawful currency of Canada.

               "Class B Shares" has the meaning used in the SA.

               "50 Class B Shares" means the 50 Class B Shares owned by NOC.

               "50 Class B Shares Purchase Price" means the amount equivalent to
               the fair value of the 50 Class B Shares as determined by the
               Valuator pursuant to the Engagement Letter.

               "Closing" has the meaning specified in Section 3.1.

               "Closing Date" has the meaning specified in Section 3.1.

               "control" means the possession, directly or indirectly, of the
               power to direct or cause the direction of the management and
               policies of a person, whether through the ownership of a majority
               of voting shares, the ability

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               to appoint a majority of the directors of such person, or by
               contract or otherwise.

               "DNN" has the meaning assigned to it in the recitals.

               "DNN Agreements" means the LAA, LPA, the SA, the TPA, the Letter
               Agreement, the Forbearance Agreement the Two-Party TPA, and all
               agreements incidental thereto.

               "DNNLP" has the meaning assigned to it in the recitals.

               "Dofasco" has the meaning assigned to it in the recitals.

               "Dofasco Participant" means 904153 Ontario Inc., an Ontario
               corporation.

               "Encumbrance" means any mortgage, charge, pledge, lien,
               assignment, hypothecation, security interest, title retention,
               third party right or any other security agreement or arrangement
               and includes any interest or equity of any person (including,
               without prejudice to the generality of the foregoing, any right
               to acquire, option or rights of preemption or first refusal).

               "Engagement Letter" has the meaning assigned to it in the
               recitals.

               "Financial Default" has the meaning assigned to it in the LPA.

               "Forbearance Agreement" has the meaning assigned to it in the
               recitals.

               "GAC" has the meaning assigned to it in the preordium.

               "GOC" has the meaning assigned to it in the preordium.

               "Governmental Body" means any national, state, county, municipal
               or other local government department, commission, board, bureau,
               agency, authority of Ontario, of Canada or of the United States,
               and any person exercising executive, legislative, judicial or
               regulatory functions of or pertaining to any of the foregoing
               entities, including, without limitation, all commissions, boards,
               bureaus, arbitrators and arbitration panels, and any authority or
               other person controlled by any of the foregoing.

               "Income Tax Act (Canada)" or "ITA" means the Income Tax Act,
               R.S.C. 1985 (5th Supp.), as amended, the Income Tax Application
               Rules, R.S.C. 1985 (5th Supp.), c. 2, the Income Tax Regulations
               as amended to the date hereof and where a reference is made to a
               provision under the Income Tax Act it shall be deemed to include
               where applicable the Income Tax Application Rules, the Income Tax
               Regulations, any Notice of Ways and Means Motion or Bill tabled
               in the House of Commons or any press

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               release or publicly disseminated statement by or on behalf of the
               Minister of Finance, which may result in an amendment to the
               Income Tax Act, the Income Tax Application Rules or the Income
               Tax Regulations.

               "Joint Voting Agreement" means the Joint Venture Voting Agreement
               made as of March 15, 1990 between NKK and NSC.

               "LAA" means the Line Access Agreement to be entered into at the
               Closing by and among Dofasco, DNN, NAC and NSC substantially in
               the form of Exhibit A hereto.

               "Law(s)" means laws, rules, regulations, codes, orders,
               ordinances, judgments, injunctions, decrees and policies
               (including, without limitation, any foreign exchange controls).

               "Letter Agreement" has the meaning assigned to it in the
               recitals.

               "LPA" has the meaning assigned to it in the recitals.

               "Matured Default" has the meaning assigned to it in the LPA.

               "Minister of National Revenue" means the Minister of National
               Revenue of Canada.

               "NAC" means NKK U.S.A. Corporation, a Delaware corporation.

               "NKK" means NKK Corporation, a Japanese corporation.

               "NKK SPVs" means GAC and GOC.

               "NOII" has the meaning assigned to it in the preordium.

               "NOC" has the meaning assigned to it in the preordium.

               "NSC" has the meaning assigned to it in the recitals.

               "NSC Interests" has the meaning assigned to it in the recitals.

               "NSC SPVs" means NOC and NOII.

               "Ontario" means the Province of Ontario, Canada.

               "person" means any individual, corporation, company, partnership,
               joint venture, association, joint stock company, trust or
               unincorporated organization.

               "Partnership Interest" has the meaning assigned to it in the LPA.

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               "9.5% Partnership Interest" means the Partnership Interest owned
               by NOII.

               "Purchase Price" means the aggregate of the 9.5% Partnership
               Interest Purchase Price and the 50 Class B Shares Purchase Price,
               less the fees and expenses paid or payable to the Valuator in
               accordance with the Engagement Letter.

               "9.5% Partnership Interest Purchase Price" means the amount
               equivalent to the fair value of the 9.5% Partnership Interest as
               determined by the Valuator pursuant to the Engagement Letter.

               "Remittance Date" has the meaning assigned to it in Section
               3.2(f) hereof.

               "SA" has the meaning assigned to it in the recitals.

               "Sale Approval Order" means an Order of the Bankruptcy Court
               substantially in the form of Exhibit B hereto.

               "Tax" or "Taxes" means (a) all taxes payable under the Income Tax
               Act (Canada) and all federal, provincial, territorial, municipal,
               local, foreign and other taxes, imposts, rates, levies,
               assessments and government fees, charges or dues lawfully levied,
               assessed or imposed against the NSC SPVs including without
               limitation, income taxes, gross receipts taxes, excise taxes,
               sales taxes, goods and service tax, use taxes, franchise taxes,
               withholding taxes, payroll taxes, employment taxes (including
               CPP, EI and worker's compensation premiums), severance taxes,
               transfer taxes, property or windfall profits taxes, capital
               taxes, customs and import duties and other governmental charges
               and assessments, together with any interest and any penalties,
               additions to tax or additional amounts imposed by any taxing
               authority (domestic or foreign) upon the NSC SPVs with respect to
               all periods or portions thereof ending on or before the Closing
               and/or (b) any liability of the NSC SPVs for the payment of any
               amounts of the types described in the immediately preceding
               clause (a) as a result of being a member of an affiliated or
               combined group.

               "Tax Legislation" means collectively, the Income Tax Act (Canada)
               and all provincial, state, municipal, county, territorial or
               other Tax statutes including all treaties, conventions, case law,
               interpretation bulletins, circulars and releases, rules,
               regulations, orders and decrees of any jurisdiction.

               "Tax Returns" means all reports, returns and other documents
               required to be filed under the provisions of any Tax Legislation
               and any tax forms required to be filed, whether in connection
               with a tax return or not, under any provisions of any applicable
               Tax Legislation.

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               "TPA" means Amended and Restated Toll Processing Agreement made
               as of July 26, 1996 between [sic] NAC, NSC and DNN.

               "Two-Party TPA" means the Toll Processing Agreement to be entered
               into between NAC and DNN at the Closing.

               "Transaction Documents" means this Agreement, the Forbearance
               Agreement, LAA and the Two-Party TPA and any other agreements
               that are entered into to consummate the transactions contemplated
               by this Agreement.

               "transfer" means any sale, bequest, exchange, assignment or gift,
               the creation of any Encumbrance, and any other disposition of any
               kind, whether voluntary or involuntary, affecting title to or
               possession of the subject item accomplished directly or
               indirectly.

               "United States" means the United States of America.

               "U.S. dollars" or "US$" means the lawful currency of the United
               States of America.

               "Valuation Date" means the date on which the valuator delivers
               the valuation of each of Class B Shares and of the 9.5%
               Partnership Interest pursuant to the terms of the Engagement
               Letter.

               "Valuator" has the meaning assigned to it in the recitals.

          1.2  Interpretations.

          In this Agreement:

               (a) a reference to this Agreement or any other document or to any
specified provision of this Agreement or any other document is to this
Agreement, that document or that provision as in force for the time being and as
amended from time to time in accordance with the terms of this Agreement or that
document or, as the case may be, with the agreement of the relevant parties;

               (b) words importing the singular include the plural and vice
versa, words importing a gender include every gender and references to persons
include corporations, partnerships and other unincorporated associations or
bodies of persons;

               (c) the contents table and the descriptive headings to sections,
exhibits and schedules are inserted for convenience only, have no legal effect
and shall be ignored in the interpretation of this Agreement;

               (d) references to a section, exhibit or a schedule are to a
section of, exhibit to or a schedule to this Agreement; references to this
Agreement include its schedules,

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and references in an exhibit or in a schedule or part of an exhibit or a
schedule to a paragraph are to a paragraph of that schedule or exhibit or part
of that schedule or exhibit; and

               (e) where any representation or warranty contained in this
Agreement is expressly qualified by reference to the knowledge of a party, that
party confirms that it has made due and diligent inquiry as to the matters that
are the subject of any such representation or warranty.

          SECTION 2. SALE AND PURCHASE OF THE NSC INTERESTS; CONSIDERATION

          Subject to the terms and conditions of this Agreement and in reliance
on the representations and warranties set forth herein, the NKK SPVs agree to
purchase from the NSC SPVs and the NSC SPVs agree to sell to the NKK SPVs the
NSC Interests free from any Encumbrance and having all rights of ownership.

          SECTION 3. CLOSING

          3.1  Closing.

          The closing of the sale and purchase of the NSC Interests (the
"Closing") will take place at the offices of Kaye Scholer LLP in Chicago on the
Closing Date. "Closing Date" means the earlier of (i) the date on which the
Bankruptcy Court has docketed entry of the Sale Approval Order, or (ii) August
16, 2002.

          3.2 Closing Deliveries of the NSC SPVs.

               (a) At the Closing, the NSC SPVs shall deliver or cause to be
delivered to the NKK SPVs (i) against payment of the Purchase Price (as
adjusted, if adjusted, pursuant to Sections 3.2(b) through (f) below), one or
more duly executed certificates, and appropriately completed and signed transfer
forms relating thereto, representing the Class B Shares, (ii) the documents set
forth in Schedule 3.2 hereto, (iii) certificates issued pursuant to Section 116
of the Income Tax Act (Canada) in respect of the sale of the NSC Interests
containing certificate limits at least equal to the 9.5% Partnership Interest
Purchase Price, with respect to NOII, and at least equal to the 50 Class B
Shares Purchase Price, with respect to NOC, and (iv) such other documents and
instruments as may be reasonably requested by the NKK SPVs.

               (b) Each of the NSC SPVs shall provide the NKK SPVs on or before
the Closing with certificates of compliance for the purposes of Section 116 of
the ITA with respective certificate limits (as defined in subsection 2 of
Section 116 of the ITA) fixed by the Minister of National Revenue in such
certificates equal to the 50 Class B Purchase Price and the 9.5% Partnership
Interest Purchase Price, respectively.

               (c) If certificates of compliance have not been obtained by the
NSC SPVs and provided to the NKK SPVs on or before the Closing, the respective
NKK SPVs shall withhold 25% from each of the 50 Class B Purchase Price and the
9.5% Partnership Interest

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Purchase Price (or any greater or lesser percentage that may be required at the
applicable time) and remit such amounts as required to be remitted in accordance
with paragraph (f).

               (d) If certificates of compliance are so delivered to the NKK
SPVs by the NSC SPVs, the NKK SPVs shall be entitled to withhold from the 50
Class B Purchase Price and the 9.5% Partnership Interest Purchase Price
respectively at Closing an amount equal to 25% (or any greater or lesser
percentage that may be required at the applicable time) of the amount, if any,
by which the 50 Class B Purchase Price and the 9.5% Partnership Interest
Purchase Price respectively exceeds the respective certificate limit.

               (e) If NSC SPVs either deliver no certificates at Closing or
deliver certificates for less than the amounts of the 50 Class B Purchase Price
and the 9.5% Partnership Interest Purchase Price respectively and subsequently
deliver to the NSC SPVs a certificate on or before the date that is 30 days
after the end of the month in which the Closing occurs, the NKK SPVs shall pay
to the NSC SPVs forthwith upon the delivery of such certificates by NSC SPVs to
the NKK SPVs an amount equal to the lesser of:

                    (i)  The withheld amount; and

                    (ii) 25% (or any greater or lesser percentage that may be
                         required at the applicable time) of the respective
                         amounts of the certificate limits if no certificates
                         were previously issued and 25% (or any greater or
                         lesser percentage that may be required at the
                         applicable time) of the amounts by which the
                         certificate limits exceed the aggregate certificate
                         limits of all certificates previously issued if one or
                         more certificates were previously issued.

               (f) If the NSC SPVs fail to deliver to the NKK SPVs one or more
certificates which satisfy the provisions of Section 3.3(b) above, on or before
the date that is 30 days after the end of the month in which the Closing occurs
(the "Remittance Date"), the NKK SPVs shall, on the Remittance Date, pay to the
Receiver General for Canada an amount equal to the amount which is not refunded
to the NSC SPVs in accordance with paragraph (e) and the amount so paid by the
respective NKK SPVs shall be considered for all purposes to be a payment made by
the NKK SPVs to the NSC SPVs on account of the Purchase Price.

          3.3  Closing Deliveries of the NKK SPVs.

          At the Closing, the NKK SPVs will deliver or cause to be delivered to
the NSC SPVs (i) the Partnership Interest Purchase Price and the Class B Shares
Purchase Price, subject to any adjustment, if any, pursuant to this Section by
certified or official bank check or by wire transfer in immediately available
Canadian dollar funds, (ii) the documents set forth in Schedule 3.3 hereto, and
(iii) such other documents and instruments as may be reasonably requested by the
NSC SPVs. If delivery will be made by wire transfer, the NSC SPVs shall timely
furnish to the NKK SPVs all information reasonably required to complete the wire
transfers timely.

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          SECTION 4. CONDITIONS PRECEDENT

          4.1  Conditions Precedent to Obligations of the NSC SPVs.

          The obligation of the NSC SPVs to sell the NSC Interests to the NKK
SPVs on the Closing Date pursuant to this Agreement shall be subject to the
satisfaction or waiver in writing by either of the NSC SPVs at or prior to
Closing of each of the following conditions:

               4.1.1  Compliance with Agreement. Each of the covenants and
agreements of either of the NKK SPVs to be performed or complied with pursuant
to this Agreement at or prior to Closing shall have been fully performed and
complied with in all material respects.

               4.1.2  Execution of the Forbearance Agreement, LAA and Two-Party
TPA. Each of the parties to the Forbearance Agreement, LAA and Two-Party TPA
(except with respect to NSC as a party to the Forbearance Agreement and the LAA)
shall have signed such documents and the Two-Party TPA as signed shall be in
form and substance reasonably satisfactory to the NSC SPVs.

               4.1.3  Bankruptcy Court Approval. The Bankruptcy Court shall have
docketed the Sale Approval Order.

          4.2  Conditions Precedent to Obligations of the NKK SPVs.

          The obligations of the NKK SPVs to purchase the NSC Interests from the
NSC SPVs on the Closing Date pursuant to this Agreement shall be subject to the
satisfaction or waiver in writing by either of the NKK SPVs at or prior to
Closing of each of the following conditions:

               4.2.1  Compliance with Agreement. Each of the covenants and
agreements of either of the NSC SPVs to be performed or complied with pursuant
to this Agreement at or prior to Closing shall have been fully performed and
complied with in all material respects.

               4.2.2  Execution of the Forbearance Agreement, LAA and Two-Party
TPA. Each of the parties to the Forbearance Agreement, LAA and Two-Party TPA
(except with respect to NAC as a party to the Forbearance Agreement, the LAA and
the Two-Party TPA) shall have signed such documents.

               4.2.3  Bankruptcy Court Approval. The Bankruptcy Court shall have
docketed the Sale Approval Order.

               4.2.4  Appropriate Entry on DNN Share Register. The share
register of DNN at Closing shall specify that GAC is the owner of the Class B
Shares.

               4.2.5  Appropriate Entry in DNNLP Record of Limited Partners. The
record of limited partners of DNN LP shall show GOC and Dofasco as the sole
limited partners.

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               4.2.6  Issuance of Declaration of Change. The NKK SPVs shall have
received a notarial/certified copy of Declaration of Change showing the change
of limited partners of DNN LP.

               4.2.7  Adoption of Enabling DNN Resolutions. The NKK SPVs shall
have received a certified copy of a resolution of the Board of Directors of DNN
authorizing the transfer of the 9.5% Partnership Interest to GOC and of the 50
Class B Shares to GAC.

          SECTION 5. COVENANTS OF THE PARTIES

          5.1  Mutual Covenants of the Parties.

               (a) Each of the NSC SPVs and of the NKK SPVs agree that at all
times it will cooperate fully with the other parties to endeavor to bring to
full fruition the objectives of this Agreement, and at all times regarding the
transactions contemplated by this Agreement act in good faith and take such
actions as may be necessary or appropriate to effect fully the provisions of
this Agreement, except that no party shall be required hereby to take any
unlawful act, or to act contrary to public policy or to that party's established
institutional policies or guidelines. Without limiting the generality of the
foregoing, each of the parties agrees to use all reasonable commercial efforts
to make their respective representations and warranties true and correct at
Closing and to satisfy their respective conditions to Closing.

               (b) Without limiting the generality of Section 5.1(a), the NKK
SPVs shall cause NKK to, and the NSC SPVs shall cause NSC to, terminate the
Joint Voting Agreement effective as of the Closing.

               (c) NOII and GOC will use reasonable commercial efforts to cause
DNNLP to make election described in Section 754 of the United States Internal
Revenue Code of 1986, as amended, beginning with respect to the taxable year of
DNNLP in which the Closing takes place.

          5.2 Additional Covenants of NSC SPVs.

               (a) [Reserved]

               (b) The NSC SPVs shall cause all directors of DNN nominated by
the holders of the Class B Shares within their or any of their affiliates'
control to vote so as to avoid taking any action intended by any such director
that knowingly or reasonably foreseeably would result in a breach of a warranty
of the NSC SPVs or in a breach of any of the DNN Agreements.

               (c) The NSC SPVs shall cause NSC to enter into the LAA and the
Forbearance Agreement at the Closing.

               (d) The NSC SPVs each hereby irrevocably waives, and both jointly
shall cause NSC to waive, any and all rights under applicable laws of the United
States or any other jurisdiction to seek a determination from any court,
judicial tribunal or Governmental Body that any of NSC, NOC or NO II can assume,
assume and assign, sell or otherwise transfer any right or delegate any
obligation they have under the LAA, LPA, SA or TPA.

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               (e) [Reserved]

               (f) The NSC SPVs shall use all reasonable commercial efforts to
obtain a Sale Approval Order by filing a motion or amending the currently
pending motion seeking authorization to consummate this transaction.

               (g) The NSC SPVs shall cause NSC to pay promptly all amounts
payable through the December 31, 2002 by NSC pursuant to the terms of the TPA
and the Forbearance Agreement upon notice thereof by NAC or DNN in the currency
stated in the invoice.

          5.3 Additional Covenants of the NKK SPVs.

               (a) The NKK SPVs shall cause NAC to enter into the Forbearance
Agreement, the LAA and the Two-Party TPA at Closing.

               (b) The NKK SPVs shall cause NAC in turn to use all reasonable
efforts to cause DNN to pay at the customary time to NSC all amounts payable to
NSC under the terms of the TPA through December 31, 2002.

          SECTION 6. REPRESENTATIONS AND WARRANTIES

          6.1  Representations and Warranties of the NSC SPVs.

          Each of the NSC SPVs jointly and severally makes as of the date hereof
and as of the Closing Date for the benefit of the NKK SPVs the representations
and warranties set forth in Schedule 6.1.

          6.2  Representations and Warranties of the NKK SPVs.

          Each of the NKK SPVs jointly and severally makes as of the date hereof
and as of the Closing Date for the benefit of the NSC SPVs the representations
and warranties set forth in Schedule 6.2.

          SECTION 7. COSTS

          Subject to Section 8 below, each of the parties hereto shall be
responsible for its own costs relating to the negotiation, preparation,
execution and performance by it of this Agreement.

          SECTION 8. TERMINATION; SURVIVAL OF PROVISIONS OF AGREEMENT

          8.1  Termination of Agreement.

               (a) If by 7 p.m. in New York on August 16, 2002 any of the
conditions to the obligations of the NSC SPVs or the NKK SPVs, set forth in
Sections 4.1 and 4.2 respectively, has not been satisfied, either party may
terminate this Agreement by notice to the

                                       11

<PAGE>

other party; provided that the party seeking to terminate this Agreement is then
not in breach of this Agreement. Nonetheless, the parties agree and covenant
that in the event Closing is not achieved for whatever reason other than by the
breach of this Agreement by either party, the parties shall allocate the costs
of the Valuator proratably among themselves and the NSC SPVs shall promptly
reimburse the NKK SPVs their allocated portion. In the event Closing is not
achieved by reason of the breach of this Agreement by a party, the breaching
party and its affiliate which is a party hereto shall be responsible for the
entire costs of the Valuator. If one of the NSC SPVs is the breaching party, the
NSC SPVs shall promptly reimburse (jointly or severally) the NKK SPVs for the
costs of the Valuator.

               (b) This Agreement may be terminated by the mutual agreement of
the parties hereto expressed in writing.

               (c) If this Agreement is terminated pursuant to this Section 8,
no party shall have any claim of any nature whatsoever under this Agreement
except any liability which at the time of termination has already accrued, or
which thereafter may accrue in relating to acts, omissions or breaches occurring
prior to the date of termination.

          8.2  Survival of Provision of Agreement.

          Sections 1, 5.2(g), 5.3(b), 6, 7, 8, 9, 11 and 12 shall survive any
termination of this Agreement or Closing; additionally, Sections 3.2(e), 3.2(f)
and 5.1(c) shall survive the Closing.

          SECTION 9. NOTICES

          9.1  Addresses.

          Any notice or other document to be given under this Agreement shall be
in writing and be deemed duly given to the other party if sent by the respective
representatives and at the respective addresses set out below by facsimile
transmission, mail or courier delivery service to:

                  (a)    GAC or GOC:
                         Address:  c/o NKK America Inc.
                         Suite 25
                         450 Park Avenue
                         New York, New York USA  10022
                         Attention:  Corporate Secretary
                         Facsimile:  (212) 826-6358

                  (b)    NOC or NOII:
                         Address:  c/o National Steel Corporation
                         4100 Edison Lakes Parkway
                         Mishiwaka, IN  46545
                         Attention:  Corporate Secretary
                         Facsimile:  (574) 273-7609

                                       12

<PAGE>

(or such other representative and address as one party may by notice in writing
to the other party expressly substitute). Any notice so served by hand, fax, or
courier shall be deemed to have been duly given (i) in the case of delivery by
hand or by courier, when delivered; (ii) in the case of fax, at the time of
transmission.

          9.2 Proof of Notice.

          In proving the giving of a notice, it shall be sufficient to prove
that the overnight envelope containing such notice was properly addressed and
that the facsimile transmission was sent to the proper facsimile number.

          SECTION 10. [RESERVED]

          SECTION 11. GOVERNING LAW

          This Agreement shall be governed by and construed in accordance with
the laws of the State of New York, United States of America.

          SECTION 12. MISCELLANEOUS

          12.1 Entire Agreement.

          The Transaction Documents set out the entire agreement and
understanding among the parties relating to the subject matter of this Agreement
and supersede all prior communications, written or oral, and all contemporaneous
oral communications, with respect thereto among the parties or any assignor of
the parties.

          12.2 Amendments.

          Any alteration, amendment, modification or variation of this Agreement
shall be valid only if it is in writing and signed by or on behalf of each
party.

          12.3 Actions Upon Breach.

          The parties affirm that any action for a breach of the provisions of
this Agreement shall be maintained in contract law (or equity) and shall not be
maintained in tort.

          12.4 Waivers.

          The single or partial exercise, or temporary or partial waiver, by any
party of any right or the discontinuance, abandonment or adverse determination
of any proceedings commenced by any party to enforce any right or provision
shall not (except to the extent and for the period of any temporary or partial
waiver) operate as a waiver of, or preclude any exercise or enforcement or
further exercise or enforcement by, that party of any other right, provision or
remedy.
                                       13

<PAGE>

          12.5 Cumulative Rights.

          The rights and remedies of each party contained in this Agreement are
cumulative and are not exclusive of rights or remedies provided by law.

          12.6 Severability.

          Each provision of this Agreement is distinct and severable from the
others. It is the intention of the parties that each provision shall be and
shall remain valid to the fullest extent permitted by law. If any provision is
or becomes invalid, illegal or unenforceable under any enactment or rule of law,
it shall to the extent invalid be deemed not to form part of this Agreement and
all other provisions of this Agreement shall continue in full force and effect.

          12.7 Counterparts.

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

          12.8 Assignment.

          Without the prior written consent of the non-assigning party, which
consent shall not unreasonably withheld, neither party hereto shall assign any
of its rights or obligations under this Agreement.

               [SIGNATURE PROVISIONS APPEAR ON THE FOLLOWING PAGE]

                                       14

<PAGE>

               IN WITNESS WHEREOF, the parties have executed this Agreement as
of the date first above written.

NKK SPVs:                                    NSC SPVs:

GALVATEK AMERICA CORPORATION                 NATIONAL ONTARIO CORPORATION
                                               Debtor and Debtor in Possession

By: /s/ Mineo Shimura                          By: Kirk A. Sobecki
    -----------------                              ---------------
    Name: Mineo Shimura                            Name: Kirk A. Sobecki
    Title: President                               Title: VP & CFO

GALVATEK ONTARIO CORPORATION                   NATIONAL ONTARIO II, LIMITED
                                                 Debtor and Debtor in Possession

By: /s/ Mineo Shimura                          By: Kirk A. Sobecki
    -----------------                              ---------------
    Name: Mineo Shimura                            Name: Kirk A. Sobecki
    Title: President                               Title: VP & CFO

                                       15

<PAGE>

                                  SCHEDULE 3.2

                    DOCUMENTS TO BE DELIVERED BY THE NSC SPVs

(i)       letters of resignation of each director of DNN nominated by the
          holders of Class B Shares controlled by the NSC SPVs

                                       16

<PAGE>

                                  SCHEDULE 3.3

                    DOCUMENTS TO BE DELIVERED BY THE NKK SPVs

(i)       the minutes of the board of directors of each of the NKK SPVs, NAC
          and NKK which, inter alia, to the extent pertinent approve the
          transactions contemplated by this Agreement and authorize the
          signature, execution and completion (as appropriate) of this Agreement
          and the documents ancillary to this Agreement

                                       17

<PAGE>

                                  SCHEDULE 6.1

                       WARRANTIES RELATING TO THE NSC SPVs

DISCLOSURE

1.1       The information provided to the Valuator by or on behalf of the NSC
          SPVs was provided in good faith and when read as a whole is in all
          material respects true, complete, accurate and not misleading.

1.2       There has been no intentional withholding by the NSC SPVs or any of
          their affiliates of any information relating to DNN or the toll
          processing facility that would, if disclosed, make the contents of the
          information provided to the Valuator when read as a whole misleading.

VALID EXISTENCE AND DUE ORGANIZATION; CORPORATE POWER AND AUTHORITY

2.1       Each of NOII, NOC and NSC is duly incorporated, validly existing and
          in good standing under the laws of the State of Delaware, United
          States.

2.2       Each of NOII and NOC has all requisite corporate power and authority
          and all necessary consents to own its properties and to carry on its
          business as is currently conducted.

ABSENCE OF ENCUMBRANCE ON THE NSC INTERESTS

3.1       The NSC Interests when delivered to the NKK SPVs against payment
          therefor will be free from any Encumbrance, there is no agreement or
          commitment to give or create any such Encumbrance and no claim has
          been made by any person entitled to any of the foregoing.

3.2       All of the NSC Interests are fully-paid or properly credited as
          fully-paid; NOII is the sole legal and beneficial owner of the 9.5%
          Partnership Interest and NOC is the sole legal and beneficial owner of
          the 50 Class B Shares.

ENFORCEABILITY

4         Subject only to the entry of the Sale Approval Order, the execution,
          delivery and performance of each of the Transaction Documents to which
          either of the NSC SPVs or any of their affiliates are a party and the
          transactions contemplated herein and therein, have been duly
          authorized by the NSC SPVs and by such affiliates (as applicable), and
          when executed and delivered by the NSC SPVs or by one of their
          affiliates (as applicable), each of the Transaction Documents to which
          it or one of its affiliates is party will constitute valid and binding
          obligations of such entity.

                                       18

<PAGE>

CONSENTS

5         No consent of any Governmental Body or any court is required of either
          of the NSC SPVs, or of NSC, for the consummation of the transactions
          contemplated by the Transaction Documents other than the Sale Approval
          Order.

NO CONFLICTS

6         There is no provision of the organizational documents of either of the
          NSC SPVs or of NSC and no provision of any Law, mortgage, indenture,
          contract or other agreement binding on either of the NSC SPVs or on
          NSC or affecting any of their respective properties, which would
          prohibit, conflict with or in any way prevent the execution, delivery
          or performance of the terms of any of the Transaction Documents to
          which either of the NSC SPVs or NSC is a party.

                                       19

<PAGE>

                                  SCHEDULE 6.2

                       WARRANTIES RELATING TO THE NKK SPVs

DISCLOSURE

1.1       The information provided to the Valuator by or on behalf of the NKK
          SPVs was provided in good faith and when read as a whole is in all
          material respects true, complete, accurate and not misleading.

1.2       There has been no intentional withholding by the NKK SPVs or any of
          their affiliates of any information relating to DNN or the toll
          processing facility that would, if disclosed, make the contents of the
          information provided to the Valuator when read as a whole misleading.

VALID EXISTENCE AND DUE ORGANIZATION

2         Each of the NKK SPVs and NAC is a company duly incorporated, validly
          existing and in good standing under the laws of the State of Delaware,
          United States. NKK is a company duly incorporated, validly existing
          and in good standing under the laws of Japan.

CORPORATE POWER AND AUTHORITY

3         Each of the NKK SPVs, NAC and NKK has all requisite corporate power
          and authority and all necessary consents to own its properties and to
          carry on its business as is currently conducted.

ENFORCEABILITY

4         The execution, delivery and performance of each of the Transaction
          Documents to which either of the NKK SPVs or any of their affiliates
          is a party and the transactions contemplated herein and therein, have
          been duly authorized by each of the NKK SPVs and by such affiliates
          (as applicable), and when executed and delivered by the NKK SPVs or by
          one of their affiliates (as applicable), each of the Transaction
          Documents to which it or one of its affiliates is a party will
          constitute valid and binding obligations of such entity enforceable
          against such entity, in accordance with its terms except as such
          enforceability may be limited by bankruptcy, insolvency, fraudulent
          transfer, reorganization, moratorium and other laws of general
          applicability relating to or affecting creditors' rights and by
          general equity principles (regardless of whether considered in a
          proceeding in equity or at law), including, without limitation, (i)
          the possible unavailability of specific performance, injunctive relief
          or any other equitable remedy; and (ii) concepts of materiality,
          reasonableness, good faith and fair dealing.

                                       20

<PAGE>

CONSENTS

5         No consent of any Governmental Body or any court is required of either
          of the NKK SPVs, or one of its affiliates, for the consummation of the
          transactions contemplated by the Transaction Documents.

NO CONFLICTS

6         There is no provision of the organizational documents of either of the
          NKK SPVs, or of NAC or NKK, and no provision of any Law, mortgage,
          indenture, contract or other agreement binding on either of the NKK
          SPVs, or on NAC or NKK, or affecting any of its properties, which
          would prohibit, conflict with or in any way prevent the execution,
          delivery or performance of the terms of any of the Transaction
          Documents to which either of the NKK SPVs or one of its affiliates is
          a party.

NO INSOLVENCY

7         No order has been made, petition presented or meeting convened for the
          purpose of considering a resolution for the winding up of or for the
          appointment of any receiver, liquidator or provisional liquidator. No
          distress, distraint, charging order, garnishee order, execution or
          other process has been levied or applied for in respect of the whole
          or any part of any of the property, assets and/or undertaking of
          either of the NKK SPVs, or of NAC or NKK. Neither of the NKK SPVs, nor
          NAC nor NKK, has ceased trading or stopped payment to its creditors
          and there are no grounds on which either of the NKK SPVs, or of NAC or
          NKK could be found to be unable to pay its debt.

LITIGATION

8         There are no actions pending or to the knowledge of the NKK SPVs
          threatened against or affecting the NKK SPVs, NAC, NKK, DNN or DNNLP
          in any court, before any Governmental Body or before any arbitrator
          which with the passage of time could reasonably be expected to have a
          material adverse impact either on the transactions contemplated by
          this Agreement or on the DNN facility; and there is no existing
          default by any of the NKK SPVs, NAC or NKK under any applicable order,
          writ, injunction or decree of any court, Governmental Body or any
          arbitrator.

                                       21

<PAGE>

                                    EXHIBIT A

                             [LINE ACCESS AGREEMENT]

<PAGE>

                                    EXHIBIT B

                              [SALE APPROVAL ORDER]<PAGE>

                                                                    EXHIBIT 10.I

                              LINE ACCESS AGREEMENT

     THIS AGREEMENT made as of August 13, 2002, among National Steel
Corporation, a corporation incorporated under the laws of Delaware ("NSC"), NKK
U.S.A. Corporation, a corporation incorporated under the laws of Delaware
("NAC"), Dofasco Inc., a corporation incorporated under the laws of Canada
("Dofasco"), and DNN Galvanizing Corporation, a corporation incorporated under
the laws of Ontario ("Processor"), in its capacity as general partner of DNN
Galvanizing Limited Partnership, a limited partnership established pursuant to
the laws of Ontario ("DNN Partnership").

     WHEREAS, Processor operates a hot dip continuous galvanizing line and
related facilities located in Southwestern Ontario, Canada (the "Facilities");
and

     WHEREAS, NSC, NAC and DNN entered into that certain Amended and Restated
Toll Processing Agreement made as of July 26, 1996 (the "Current TPA"),
regarding the use by NSC and NAC of a portion of the line time at the Facilities
and other services offered by Processor; and

     WHEREAS, on March 6, 2002, NSC and certain of its affiliates filed under
Chapter 11 for protection under U.S. bankruptcy laws; and

     WHEREAS, on April 12, 2002, Dofasco gave notice of the occurrence of a
Financial Default under the Partnership Agreement made as of September 18, 1990,
among Dofasco and certain Affiliates (as defined herein) of NAC and NSC (the
"Partnership Agreement"), which notice resulted in a Matured Default (as such
terms are defined in the Partnership Agreement) on April 18, 2002, and was
subsequently affirmed and adopted by an Affiliate of NAC; and

     WHEREAS, on July 9, 2002, an Affiliate of NAC, NSC and Dofasco entered into
a letter agreement which extended the date by which certain Affiliates of NAC
were to acquire the interests of certain Affiliates of NSC in the Facilities,
pursuant to the terms of the Partnership Agreement and the Shareholders'
Agreement made as of September 18, 1990, among Processor and an Affiliate of
each of Dofasco, NAC and NSC (the "Shareholder Agreement"); and

     WHEREAS, concurrently with the date hereof, NKK, NSC and Dofasco (and
certain of their Affiliates) have entered into a Forbearance Agreement (the
"Forbearance Agreement") which, inter alia, effects certain amendments to the
Current TPA, the Shareholder Agreement and the Partnership Agreement; and

     WHEREAS, concurrently with the date hereof, Affiliates of NAC have acquired
the interests of certain Affiliates of NSC in the Facilities pursuant to the
terms of the Shareholder Agreement and the Partnership Agreement, both as
amended by the Forbearance Agreement, and have entered into the Two Party TPA
(defined herein); and

     WHEREAS, after December 31, 2002, the Amended Current TPA will terminate
and NSC will cease to have access to the Facilities thereunder; and

<PAGE>

     WHEREAS, NSC wishes to use a portion of the available line time at the
Facilities and other services offered by Processor during calendar year 2003 for
the toll processing of steel substrate to produce galvanized steel products; and

     WHEREAS, NAC, Dofasco and Processor currently wish to enter into an
agreement with NSC for the use by NSC of a portion of the available line time at
the Facilities allocated to NAC under the Two Party TPA and other services
offered by Processor during calendar year 2003 for the toll processing of steel
substrate to produce galvanized steel products on the terms and conditions set
forth hereinafter.

     WITNESSETH, that in consideration of the premises, covenants and agreements
herein contained, the parties hereto hereby agree as follows.

                                   ARTICLE ONE

                         DEFINITIONS AND INTERPRETATION

     1.1  In and for the purposes of this Agreement:

     "Additional Line Time Notice" shall have the meaning set forth in Section
     3.4 hereof;

     "Adjusted Yield Loss" shall have the meaning set forth in Section 10.1
     hereof.

     "Affiliate" means an entity which is a Subsidiary of NSC, NAC, JFE Holding,
     JFE Steel or Dofasco, as the case may be;

     "Agreement", "this Agreement" and "herein" and similar expressions mean and
     refer to Articles One to Thirteen, Exhibits A and B and Schedule 1.4 hereof
     as a whole and not to any particular Article, Section or Subsection;

     "Amended Current TPA" means the Current TPA as amended pursuant to the
     Forbearance Agreement which shall terminate pursuant to the terms of the
     Two Party TPA on December 31, 2002;

     "Applicable Policy" shall have the meaning set forth in Section 1.4 hereof;

     "Applicable Time Period" means a Month or Quarter, as applicable, during
     the Term;

     "Article", "Section" or "Subsection" means and refers to the specified
     article, section or subsection of this Agreement;

     "Available Line Time" means, in respect of each Applicable Time Period, the
     total number of Hours during such Applicable Time Period less (1) the
     number of scheduled Hours of downtime, (2) an estimate of unplanned
     downtime, and (3) an estimate of time to be spent running dummy and
     transition coils, as determined by Processor and advised to NSC in
     accordance with Section 6.2;

                                        2

<PAGE>

     "Business Day" shall mean a day during which commercial banks are open for
     business in New York City and in Toronto, Ontario.

     "Committed Line Time" means, in respect of each Applicable Time Period, the
     amount of Available Line Time set forth in the notification from NSC to
     Processor in accordance with Sections 3.4 and 6.2;

     "Current TPA" has the meaning set forth in the Recitals;

     "Customer Manual" means the document entitled "Partners in Performance"
     referred to in Subsection 8.1(b);

     "Customer Service Line" means the recoil line included in the Facilities;

     "Customer Specifications" means the product specifications supplied by each
     Customer to Processor as part of each Work Order or by the Customer Manual;

     "Customers" means NSC and its Affiliates, and "Customer" means any one of
     the Customers;

     "DNN Partnership" has the meaning set forth in the Preamble;

     "Dofasco" has the meaning set forth in the Preamble;

     "Effective Date" shall mean January 1, 2003;

     "Facilities" has the meaning set forth in the Recitals;

     "Forbearance Agreement" means the Forbearance Agreement dated concurrently
     with the date hereof by and among NKK, NSC and Dofasco (and certain of
     their Affiliates);

     "Force Majeure Event" shall have the meaning set forth in Section 11.1
     hereof;

     "Galvanizing Line" means the hot dip continuous galvanizing line included
     in the Facilities;

     "Hour" means a period of 60 minutes;

     "Hourly Rate" means the rate per Hour payable for the use of the
     Facilities' galvanizing line which is fixed by Processor on the basis
     provided in Exhibit A;

     "JFE Holding" means JFE Holding Inc., a corporation incorporated under the
     laws of Japan;

     "JFE Steel" means JFE Steel Inc., a corporation incorporated under the laws
     of Japan;

     "Maximum NSC Line Time" means the Available Line Time made available to NSC
     and its Affiliates hereunder, which as to each Quarter shall be a
     percentage (as set forth

                                        3

<PAGE>

     hereinafter) of Available Line Time for such Quarter: from January 1, 2003,
     through March 31, 2003, 43.75% of the Available Line Time for such Quarter;
     from April 1, 2003, through June 30, 2003, 31.25% of the Available Line
     Time for such Quarter; from July 1, 2003, through September 30, 2003,
     18.75% of the Available Line Time for such Quarter; and from October 1,
     2003, through December 31, 2003, 6.25% of the Available Line Time for such
     Quarter;

     "Month" means a calendar month;

     "NAC" has the meaning set forth in the Recitals;

     "NKK" means NKK Corporation, a corporation incorporated under the laws of
     Japan;

     "Non-Prime Products" means Products (other than dummy and transition coils
     and Scrap) which do not meet the requirements and criteria for Prime
     Products;

     "NSC Scrap" has the meaning set forth in Subsection 2.4(b) hereof;

     "NSC Steel" means NSC's own Steel, as well as the Steel of its Affiliates
     which, after being processed at the Facilities, is sold (either directly or
     indirectly by or on behalf of NSC or its Affiliates) to a customer of NSC
     or of one of its Affiliates other than another steel mill;

     "Other Services" means the services to be provided by Processor which are
     described in Subsections 2.3(a), (b) and (c);

     "Partnership Agreement" means the Partnership Agreement made as of
     September 18, 1990, among Dofasco and certain Affiliates of NAC and NSC;

     "Prime Products" means those Products which meet all Customer requirements
     as specified in the applicable Work Order and Customer Manual which are
     established with the objective of ensuring that such Products are capable
     of being sold at their full price;

     "Processor" has the meaning set forth in the Recitals;

     "Products" means exposed and unexposed galvanized steel products to be
     produced by processing Steel through the Galvanizing Line;

     "Quarter" means any three (3) Month period during the Term ending on the
     last day of March, June, September or December;

     "Scheduling Notice" has the meaning set forth in Section 6.2 hereof;

     "Scrap" means residual product (coated or uncoated) weighing less than one
     thousand (1,000) pounds which due to its size, shape or physical properties
     is unsuitable for sale as Prime Product or Non-Prime Product;

                                        4

<PAGE>

     "Services" means the Toll Processing Services and the Other Services,
     collectively,

     "Shareholder Agreement" means the Shareholders' Agreement made as of
     September 18, 1990, among Processor and an Affiliate of each of Dofasco,
     NAC and NSC;

     "Steel" means cold rolled steel substrate suitable for the production of
     Products;

     "Subsidiary" means a corporation, all of the issued and outstanding voting
     shares of which, or a limited liability company, all of the voting
     interests of which, are beneficially owned, either directly or indirectly,
     by NAC, JFE Holdings, JFE Steel, NSC or Dofasco, as the case may be;

     "Take or Pay Obligations" means the obligations of NSC contained in Article
     Three of this Agreement;

     "Term" means the period specified in Article Twelve hereof;

     "Toll Processing Services" means the toll processing services to be
     provided and performed by Processor which are described in Section 2.2;

     "Two Party TPA" means the Restated Toll Processing Agreement made as of the
     date of this Agreement between NAC and Processor and effective January 1,
     2003;

     "Work Order" means a written work order issued by NSC to Processor setting
     forth detailed processing requirements.

     "Yield Loss" shall have the meaning set forth in Section 10.1 hereof.

     1.2  All references to "money" "dollars" or "$" in this Agreement shall be
deemed to be references to Canadian dollars, unless expressly stated otherwise.

     1.3  In case of conflict, the provisions of this Agreement shall prevail
over those contained in the Two Party TPA, any Applicable Policy, the Customer
Manual or any Work Order, provided however that as between NAC and Processor, in
case of any conflict the provisions of the Two Party TPA shall prevail.

     1.4  The parties recognize and agree that from time to time, it will be
necessary to interpret and/or clarify the provisions of this Agreement, and the
parties agree to do so by means of issuance of policy documents, each of which
must be approved in writing by each and every party hereto. Each such policy is
hereinafter referred to as an "Applicable Policy." As of the date hereof, the
parties agree that the Applicable Polices set forth on Schedule 1.4 hereto are
in effect.

                                        5

<PAGE>

                                   ARTICLE TWO

                               PROCESSOR SERVICES

     2.1  During the Term, Processor shall, and NAC shall use commercially
reasonable efforts to cause Processor to:

          (a)  offer and make available to the Customers the Toll Processing
     Services;

          (b)  offer and make available to the Customers the Other Services;

          (c)  deal with all Scrap, as described and provided for in Section
     2.4; and

          (d)  perform the other obligations relating to the Services on its
     part herein contained;

     all in accordance with the terms of this Agreement.

     2.2  The Toll Processing Services shall consist of:

          (a)  receiving and storing all Steel supplied for processing in
     accordance with the scheduling requirements set forth in Article Six;

          (b)  inspecting in accordance with the Customer Manual all Steel
     delivered for processing;

          (c)  processing all Steel so supplied through the Galvanizing Line in
     accordance with the requirements specified by the Customer and the
     scheduling procedures in effect from time to time;

          (d)  providing to the Customer, on a timely basis via compatible
     electronic or written format, scheduling, product quality, metallurgical,
     production and shipping information required by such Customer in accordance
     with Work Orders and Customer Manual;

          (e)  statistical process control testing in accordance, with Customer
     Specifications;

          (f)  labeling, including bar coding, of all processed Steel in
     accordance with Customer's instructions;

          (g)  mechanical property testing and reports with respect to each
     Customer's Steel in accordance with the Customer Manual and Work Orders;

          (h)  inspecting all processed Steel prior to shipping, except Steel
     which is inspected at the Facilities in accordance with Subsection 2.3(a)
     or which is inspected by Customer's inspector;

                                        6

<PAGE>

          (i)  making trucking arrangements for shipping processed Steel to such
     location as Customer may designate and loading Products on to trucks for
     shipment FOB the Facilities in accordance with Customer's instructions and
     procedures; and

          (j)  services necessarily incidental to the foregoing which are not
     Other Services.

     2.3  The Other Services to be offered and provided by the Processor to
Customers shall consist of:

          (a)  rewinding and inspection of processed Steel on the Customer
     Service Line in accordance with the instructions and procedures contained
     in the Work Orders and Customer Manual;

          (b)  packaging of all processed Steel for shipping in accordance with
     the instructions and procedures contained in the Work Orders and Customer
     Manual; and

          (c)  such other services as Processor may offer to Customers from time
     to time.

     2.4  In respect of Scrap produced in the course of performing the Services:

          (a)  Processor shall take all reasonable steps to minimize the amount
     of Scrap generated in the course of processing the Products;

          (b)  Processor shall account to NSC in respect of each coil of Steel
     for coated and uncoated Scrap generated in the course of processing the
     Products ("NSC Scrap");

          (c)  if notified by NSC in writing to do so, Processor shall return to
     NSC, in accordance with NSC's instructions, any and all NSC Scrap or Scrap
     equivalent tonnage generated by the Processor for NSC's account; provided,
     however, that NSC shall provide such written notice to Processor at least
     thirty (30) days in advance of the date on which Processor is to begin
     returning such NSC Scrap or Scrap equivalent tonnage to NSC;

          (d)  NSC will be entitled to a credit for NSC Scrap which is not
     returned to NSC in accordance with Subsection (c) based on the best price
     available on the first working day of each month for similar Scrap for the
     geographic area closest to the Facilities, less such reasonable allowance
     per net ton as may be agreed from time to time; such credit for NSC Scrap
     will appear on the face of the applicable invoice issued by Processor and
     ownership of NSC Scrap will pass to Processor only after credit therefor is
     received by NSC and the credit risk of all sales of NSC Scrap by Processor
     shall be Processor's; and

          (e)  The remedies contained in this Section 2.4 shall constitute
     Customer's sole remedies for Scrap produced in the course of provision of
     the Services.

                                        7

<PAGE>

                                  ARTICLE THREE

                       TAKE OR PAY AND RELATED OBLIGATIONS

     3.1  During the Term, NAC shall cause Processor to, and Processor shall,
upon and subject to the terms and conditions of this Agreement, make available
to NSC, for use by NSC and its Affiliates, Available Line Time equal to the
Committed Line Time, provided that, notwithstanding any other provision of this
Agreement, (i) Committed Line Time in any Quarter shall not exceed Maximum NSC
Line Time and (ii) Committed Line Time in any Month shall not exceed 50% of
Available Line Time for such Month. Subject to the foregoing, Committed Line
Time for any Month, expressed as a percentage of Available Line Time for such
Month, may exceed the percentage of Maximum NSC Line Time applicable to the
Quarter during which such Month occurs. Processor shall use make reasonable
commercial efforts to assist NSC in satisfying the Committed Line Time,
including scheduling adjustments, outage relocations, line hour makeup
mechanisms and holiday operations.

     3.2  During the Term, NSC shall be obligated, upon and subject to the terms
and conditions of this Agreement, to:

          (a)  make use (itself and/or with its Affiliates) of the Available
     Line Time to process NSC Steel in each Quarter, in accordance with the
     terms of this Agreement, not in excess of the Maximum NSC Line Time for
     such Quarter;

          (b)  sixty-seven (67) days prior to the first day of each Quarter,
     advise NAC and Processor NSC's non-binding good faith estimate of the
     amount of Available Line Time that NSC expects to use during such Quarter,
     it being agreed that such estimate shall not be binding on NSC for any
     purpose under this Agreement;

          (c)  sixty-seven (67) days prior to the first day of each Month,
     notify NAC and Processor of the Committed Line Time for such Month and the
     estimated product mix for such Month, all in accordance with Section 6.2;
     and

          (d)  pay, or cause to be paid, to Processor or NAC (as the case may
     be), at the times and in the manner provided in Article Five hereof, the
     compensation determined in accordance with Article Four hereof.

     3.3  NSC's obligations to make use of a portion of the Available Line Time
to process NSC Steel pursuant to Section 3.2 above will be deemed to have been
satisfied through a combination of:

          (a)  actual use of and payment for such portion of the Available Line
     Time by NSC and its Affiliates; and

          (b)  to the extent that Committed Line Time is not used by NSC or its
     Affiliates and NAC and Dofasco do not use some or all of the Committed Line
     Time not used by NSC or its Affiliates, payment by NSC for such portion of
     the Committed Line Time. It is agreed by NSC that if, as to any Month, NAC
     is offering for sale to third

                                        8

<PAGE>

     parties Hours of Committed Line Time that are not used by NSC or its
     Affiliates and also is offering for sale to third parties Hours of
     Available Line Time that NAC is obligated to pay for under the Two Party
     TPA but which NAC and its Affiliates will not use, NAC may sell the Hours
     of Available Line Time that NAC is obligated to pay for under the Two Party
     TPA but which NAC and its Affiliates will not use before NAC sells any
     Hours of Committed Line Time that are not used by NSC or its Affiliates.

     3.4  In the event that NSC and its Affiliates elect to use less than the
Maximum NSC Line Time for any Month, the Hours of Available Line Time
constituting the difference between 50% of Available Line Time and Committed
Line Time for such Month shall be governed by the provisions of Article Ten of
the Two Party TPA relating to Dofasco's right of first refusal. If Dofasco
elects affirmatively not to exercise its right of first refusal under Article
Ten of the Two Party TPA or, by the end of the fifteenth (15th) day after
receipt of the Offer, Dofasco has not exercised such right of first refusal to
use the Hours which constitute such difference, NAC will notify NSC to that
effect (on the next Business Day following such affirmative election by Dofasco
or on the next Business Day after the fifteenth (15th) day after receipt of the
Offer, as the case may be), and NSC shall thereupon have the option to notify
NAC and Processor (the "Additional Line Time Notice") that NSC and/or its
Affiliates will use some or all of such Hours to process NSC Steel. Upon the
delivery to NAC and Processor of an Additional Line Time Notice, and subject to
the next sentence, the amount of additional line time identified by NSC in the
Additional Line Time Notice shall be deemed for all purposes of this Agreement
to be Committed Line Time (in addition to any Hours previously included as
Committed Line Time in the Scheduling Notice for that Month). Notwithstanding
the foregoing, (i) the amount of such additional line time which is the subject
of Additional Line Time Notices during any Quarter, when added to the amount of
Committed Line Time set forth in the Scheduling Notices for the three Months
which constitute that Quarter, cannot exceed the Maximum NSC Line Time
applicable to that Quarter, (ii) no Additional Line Time Notice can be sent in
respect of any line time as to which NAC has entered into an agreement to sell
to a third party which is not an Affiliate of NAC, and (iii) any Additional Line
Time Notice must be delivered by NSC to Processor and NAC no later than thirty
(30) days prior to the Month to which such Additional Line Time Notice applies.

                                  ARTICLE FOUR

                                  COMPENSATION

     4.1  NSC shall pay to Processor, at the times and in the manner provided in
Article Five hereof, the aggregate of the amounts set out in this Article Four.

     4.2  NSC shall pay to Processor or NAC (as the case may be), as NSC's sole
obligation for the Toll Processing Services performed by Processor for NSC and
its Affiliates and in satisfaction of NSC's Take or Pay Obligations, the amounts
determined in accordance with the provisions set out in Exhibit A.

                                        9

<PAGE>

     4.3  NSC shall pay to Processor, as NSC's sole obligation for the Other
Services performed by Processor for NSC and its Affiliates, the amounts
determined in accordance with the provisions set out in Exhibit B.

                                  ARTICLE FIVE

                                     PAYMENT

     5.1  NSC shall be invoiced:

          (a)  as provided in Exhibit A for Toll Processing Services performed
     by Processor for NSC and its Affiliates and for NSC's Take or Pay
     Obligations; and

          (b)  at the times required by the provisions of Exhibit B in respect
     of amounts payable, as determined in accordance therewith, for Other
     Services performed by Processor for NSC and its Affiliates.

     5.2  Each invoice submitted to NSC shall include all applicable taxes and
shall be accompanied by such supporting documentation as NSC shall reasonably
require to satisfy itself that the amounts for which payment is claimed are due
and payable.

     5.3  Processor shall provide NSC and NAC with monthly reports specifying
the number of Hours of Available Line Time used by each Customer. In respect of
any Month in which NSC is obligated to make a payment for an unused portion of
the Committed Line Time, such report shall specify the number of Hours of the
shortfall and any cost savings achieved in respect of the Month when the
Galvanizing Line would have been operated but for the shortfall.

                                   ARTICLE SIX

                             SCHEDULING AND DELIVERY

     6.1  It is understood and agreed that it is desirable that maximum use be
made of the Galvanizing Line and the remainder of the Facilities and that the
scheduling of the use of the Galvanizing Line shall be designed to ensure that
NSC shall have proportional access to Available Line Time during each Applicable
Time Period based on the Committed Line Time. The provisions of this Article Six
are intended to achieve this objective.

     6.2  Not later than ninety (90) days prior to the beginning of each Month
and each Quarter during the Term, Processor shall notify NSC, NAC and Dofasco as
to the scheduled number of Hours of Available Line Time for such Month and such
Quarter. Subject thereto and in addition to its non-binding good faith estimate
of the amount of the Available Line Time that NSC expects to use during the
relevant Quarter as provided for in Subsection 3.2(b), NSC shall deliver to NAC
and Processor, not later than sixty-seven (67) days prior to the beginning of
each Month, a notice (the "Scheduling Notice") setting forth NSC's Committed
Line Time as well as its estimated product mix and scheduling requirements for
the processing of Steel by the Facilities during such Month.

                                       10

<PAGE>

     6.3  NSC shall, not later than fifteen (15) days prior to the commencement
of each Month, advise Processor of the product mix and current assessment of
actual line time requirements it will require for such Month in order that
Processor can finalize its scheduling for the Galvanizing Line. Unless otherwise
specified by NSC, all Steel supplied hereunder shall be delivered to the
Facilities by NSC and/or its Affiliates, and the scheduling of such deliveries
of Steel shall be coordinated between NSC and Processor as to maximize the use
of Available Line Time.

     6.4  NSC shall purchase at its own cost, and deliver to the Processor at
the Facilities, zinc in amounts and quality sufficient to enable Processor to
process Steel for NSC and its Affiliates in accordance with the applicable Work
Orders and Customer Manual. The zinc will at all times be the property of NSC
and any unused zinc will be returned to NSC at the end of the Term of this
Agreement.

                                  ARTICLE SEVEN

                                 TITLE AND RISK

     7.1  Title and risk of loss or damage to all Steel delivered by a Customer
for processing shall remain at all times with such Customer subject to
compliance by Processor with the provisions of this Article and to Processor's
liabilities herein.

     7.2  Processor shall be obligated to inspect all Steel upon receipt thereof
and to notify Customer and its carrier of any damage or loss which occurred
during transit and shall, if so requested by Customer, co-operate with Customer
in filing and expediting any claims against a carrier for loss or damage.

     7.3  Processor shall be liable for any demurrage, detention or other delay
charges incurred in connection with deliveries of Steel to the Facilities for
processing unless such charges arise from deliveries being made in excess of
scheduled deliveries.

     7.4  Processor shall promptly and properly unpack and inspect in accordance
with the Customer Manuals all Steel delivered for processing. The commencement
of processing of any Steel shall constitute Processor's representation that such
Steel is not damaged or defective, unless such damage or defect could not have
been discovered in the course of a reasonably diligent inspection by Processor
in accordance with the applicable provisions of the Customer Manual. Damaged or
defective Steel shall be set aside in a safe and suitable location for
examination by Customer. Processor shall follow Customer's instructions with
respect to any Steel which Customer accepts as being damaged, defective or
otherwise unsuitable for processing. Steel rejected by Processor shall be
considered "prime" and will remain "prime" until Customer has notified Processor
of material disposition. Without limitation of the foregoing requirements,
Processor shall comply with the more detailed requirements of the quality and
claims procedures set out in the Customer Manual and any Applicable Policy.

                                       11

<PAGE>

                                  ARTICLE EIGHT

     REPRESENTATIONS, WARRANTIES AND COVENANTS OF PROCESSOR, DOFASCO AND NAC

     8.1  Processor, as of the date of this Agreement and as of the Effective
Date, represents and warrants to and covenants with NSC that:

          (a)  the Facilities at all times during the Term shall be capable of
     processing Steel which meets the Customer Specifications for the Products
     agreed to by the parties;

          (b)  Processor is familiar with and acknowledges having received
     copies of NSC's "Partners in Performance" including all revisions as of the
     date hereof and shall, unless instructed otherwise by NSC in writing,
     diligently perform the Services in accordance with the terms of the
     Customer Manual and the Work Orders and shall otherwise observe and comply
     with the provisions thereof, subject to any revisions agreed upon by NSC
     and Processor from time to time that relate to the Services;

          (c)  the Toll Processing Services and the Other Services will be
     performed in a skillful and workmanlike manner, and will conform in all
     respects to those requirements set out in the Customer Manual or as
     otherwise agreed to from time to time; and

          (d)  all supplements and revisions to the Customer Manual provided by
     a Customer to Processor and not objected to in writing by Processor within
     thirty (30) days of receipt shall be deemed to have been accepted and
     agreed to by the parties.

     8.2  Processor and NAC agree not to amend the Two Party TPA so as to limit,
restrict or otherwise circumvent the rights, or in any manner expand or modify
the obligations, of NSC under this Agreement.

     8.3  Subject to Article Eleven, NAC agrees to use reasonable commercial
efforts to maintain NSC's access to the Facilities in accordance with the terms
of this Agreement.

                                  ARTICLE NINE

                 NSC'S REPRESENTATIONS, WARRANTIES AND COVENANTS

     9.1  NSC, at the date of this Agreement and as of the Effective Date,
represents and warrants to and covenants with:

          (a)  NAC and Processor that all Steel delivered by NSC and its
     Affiliates for toll coating by the Facilities will be suitable for the
     processing of Products by the Facilities;

          (b)  Dofasco, NAC and Processor that neither the entering into of this
     Agreement nor the performance by NSC of its obligations hereunder will
     constitute a breach of any agreement or undertaking to which it is a party
     or by which any of its properties or assets are bound; and

                                       12

<PAGE>

          (c)  Processor that NSC shall supply Processor with copies of all
     supplements and revisions to the Customer Manual that may be issued from
     time to time.

                                   ARTICLE TEN

                                    LIABILITY

     10.1 Processor shall take all reasonable steps to avoid damage or loss to
Steel while in Processor's possession. NSC (which for purposes of this Section
10.1 shall be deemed to include any Affiliate of NSC) and the other parties
hereto acknowledge that the standard yield loss for 2003 shall be determined as
part of the annual budget for 2003 for DNN, as to which budget NSC will consult
(the "Yield Loss"), and further acknowledge that, following the conclusion of
each Month, the Yield Loss will be adjusted for such Month based on the product
mix for such Month (the "Adjusted Yield Loss"). With respect to any damage to or
loss of NSC Steel in any Month in excess of the Adjusted Yield Loss or which is
the subject of a product liability claim by NSC, NSC shall be reimbursed as
follows: (i) if at least a portion of the damage or loss is covered by
Processor's then current insurance coverage, by (a) payment from the relevant
insurer in the ordinary course to the extent of coverage, and (b) payment from
NAC concurrently with the payment referenced in (a) in the amount of any
applicable deductible; and (ii) if at least a portion of the damage or loss is
not covered by Processor's then current insurance coverage, either (a) through
supplemental insurance coverage obtained at NAC's sole cost, in which case
payment shall be made in the same manner as in clause (i) above, and/or (b) by
payment of any uninsured portion of such damage or loss directly by NAC within
thirty (30) days of the notice of claim referenced below. NAC agrees to
reimburse DNN for any additional costs incurred by DNN as a consequence of any
claim for damage to or loss of NSC Steel in accordance herewith, including
increases in the costs incurred by DNN in obtaining insurance. The parties agree
that if NSC Steel is coated by DNN in a manner other than as required in the
applicable Work Order and the resulting Product is rejected by NSC's customer,
the costs incurred by NSC in connection therewith (such as loss in the value of
the damaged or lost NSC Steel (measured as the lesser of net replacement cost or
rework cost or in such other manner as the parties may agree), freight charges
incurred in connection with shipping the Product to and from the customer and/or
to other processors and/or final destination, freight costs incurred in shipping
material to Processor, duties for the originally intended order, and reasonable
fees paid to another party to rework the defective material) shall be included
in NSC's damages and losses for purposes of this Section 10.1. In all cases, any
claim by NSC for damage to or loss of NSC Steel shall be made by notice to NAC
and to Processor and accompanied by appropriate supporting documentation. For
purposes of this Section 10.1, the phrase "damage to or loss of NSC Steel" shall
exclude all indirect, consequential, punitive and special damages and exclude
any damage to or loss of Scrap. NSC shall have no ability to make a claim under
this Section 10.1 as to any of its Steel which has damaged the Facilities. The
procedures to be followed under this Section 10.1 shall be those in the
Applicable Policy; provided that in the case of any conflict between this
Section 10.1 and any Applicable Policy, the provisions of this Section 10.1
shall prevail.

     10.2 NSC shall indemnify and hold NAC harmless from any damage to the
Facilities resulting solely from defects in Steel delivered by NSC to Processor
for processing at the

                                       13

<PAGE>

Facilities. NSC agrees not to hold NAC liable in the event NSC is unable to
access the Facilities for any reason whatsoever which is reasonably beyond the
control of NAC or its Affiliates.

     10.3 The remedies contained in Section 10.1 shall constitute Customer's
sole remedies for damaged or lost Steel and for defective Product. For greater
certainty, it is hereby agreed that no party shall have any liability to another
pursuant to this Agreement for indirect or consequential damages of any nature,
however caused.

                                 ARTICLE ELEVEN

                                  FORCE MAJEURE

     11.1 For the purposes of this Agreement, a Force Majeure Event shall mean
Acts of God, wars, riots, fires, explosions, breakdowns or accidents; strikes,
lockouts or other labor difficulties; lack or shortages of labor, materials,
utilities, energy sources or transportation facilities; equipment failures;
delays of carriers; compliance with governmental rules, regulations, priorities,
allocations or other governmental requirements (including, without limitation,
environmental regulations); and any other causes beyond the reasonable control
of Processor or NSC, as the case may be; provided that (1) the occurrence or
cause in question shall have continued for a period of not less than ninety-six
(96) consecutive hours before it constitutes a Force Majeure Event, (2) the
party so prevented (or to be prevented) from performing shall give prompt
written notice to the other party of the nature and probable duration of such
Force Majeure Event, and of the extent of its effects of such party's
performance hereunder, (3) each party shall, in the event it experiences a Force
Majeure Event, make all reasonable efforts to remove such disability as soon as
possible (except for a Force Majeure Event resulting from a labor dispute, the
removal of which shall be solely within the affected party's discretion), and
(4) a Force Majeure Event shall, subject to the foregoing, be deemed for the
purposes of this Agreement to have commenced at the beginning of the period
specified in clause (1).

     11.2 In the event of the occurrence of a Force Majeure Event the existence
of which (a) prevents Processor from making available Available Line Time to
NSC, or (b) prevents NSC from making use of all or any part of its Committed
Line Time in respect of any Applicable Time Period, NSC shall be under no
obligation for the duration of such Force Majeure Event to pay Processor or NAC
for any Committed Line Time not in fact made available to NSC and its Affiliates
as a result of such Force Majeure Event.

                                 ARTICLE TWELVE

                                      TERM

     12.1 Subject to Sections 12.2 and 12.3, assuming (i) no Matured Default (as
defined in the Amended Current TPA) has occurred prior to the Effective Date and
(ii) the Amended Current TPA has not been terminated pursuant to Section 14.4
thereof, the Term of this Agreement shall commence at the beginning of business
at the Facilities on the Effective Date and expire at the close of business at
the Facilities on December 31, 2003.

                                       14

<PAGE>

     12.2 Notwithstanding the provisions of Section 12.1 and subject to Section
12.3, the term of this Agreement shall expire on the earlier (if prior to
December 31, 2003) of (i) the date on which NSC fails to make any payment
payable to Processor when due under this Agreement, which failure has continued
for a period of five (5) Business Days after notice thereof by NAC, Processor or
Dofasco to NSC (provided that if the payment is disputed by NSC in good faith,
the date shall be extended for an additional five (5) Business Days during which
the parties will endeavor in good faith to resolve such dispute), and (ii) one
hundred eighty (180) days after (A) the entry of an order terminating all
proceedings in connection with Case No. 02-08699 (captioned In re: National
Steel Corporation et al., Debtors) in the United States Bankruptcy Court for the
Northern District of Illinois, Eastern Division, (B) the date on which NKK (or
its successor) ceases to have beneficial ownership (within the meaning of
Schedule 13D promulgated under the United States Securities Exchange Act of
1934) of at least a majority of the issued and outstanding voting capital stock
of NSC by reason of an order of the U.S. bankruptcy court having jurisdiction
over NSC confirming a plan of reorganization, or (C) an asset sale of
substantially all of the assets of NSC and its subsidiaries by reason of an
order of the United States Bankruptcy Court having jurisdiction over NSC
confirming a plan of reorganization; provided that NSC may at its election and
in its sole discretion terminate this Agreement during the aforesaid one hundred
eighty (180) days following the occurrence of any of the events described in
(A), (B) and (C) by providing notice of such an election to NAC, Dofasco and DNN
at least sixty-seven (67) days prior to the date such election is to become
effective.

     12.3 Notwithstanding Sections 12.1 and 12.2, this Agreement may be
terminated by NSC or NAC at its option in the event of the destruction of the
Facilities, which term shall mean that the Facilities have been destroyed
completely or have suffered damage which is such that the Facilities cannot be
rebuilt or repaired so as to be usable within a period of sixty (60) days (it
being understood and agreed that, in case of damage or partial destruction, the
provisions of Article Eleven shall apply).

                                ARTICLE THIRTEEN

                                     GENERAL

     13.1 Except for the ability of NAC to assign its rights and delegate its
obligations to one of its Affiliates or an Affiliate of JFE Holdings or JFE
Steel to whom the Two Party TPA is assigned in connection with the corporate
restructuring of NKK's business activities in North America following its merger
with Kawasaki Steel Corporation, neither this Agreement nor any of the rights or
obligations hereunder may be assigned, in whole or in part without the prior
written consent of the other parties. Subject thereto and to Section 13.2 below,
this Agreement shall inure to the benefit of and be binding upon the parties
hereto, their successors and permitted assigns. The assignee of any assignment
permitted hereby shall agree to be bound by the terms hereof as a condition to
the effectiveness of any such assignment.

     13.2 Notwithstanding Section 13.1 above, Processor may assign its interest
in this Agreement, either in whole or in part, as required for security for
money borrowed in respect of

                                       15

<PAGE>

the Facilities; provided however, that any such lender shall agree to be bound
by the terms hereof.

     13.3 This Agreement shall be governed by and construed in accordance with
the laws of the Province of Ontario and the laws of Canada applicable therein.

     13.4 Each of the parties hereto, its successors and permitted assigns,
shall execute such further documents and perform or caused to be done and
performed such further and other acts as may be necessary or desirable from time
to time in order to give full effect to the provision of this Agreement.

     13.5 Headings used herein are used for convenience of reference only and
shall not be considered in construing or interpreting this Agreement.

     13.6 Words herein shall be construed to be of such gender and number as the
circumstances may require.

     13.7 All notices, demands, reports and other communications required or
permitted to be made or given under this Agreement shall be in writing and shall
be deemed to have been duly given if delivered personally, couriered by
overnight delivery, prepaid, or sent by electronic telecommunication, to the
address or telecommunication number of the other party specified below or such
other address or telecommunication number as specified by that party by written
notice in accordance with this Section:

     (a)  If to Dofasco, to:        1330 Burlington Street East
                                    Hamilton, Ontario
                                    L8N 3J5
                                    Attention: Corporate Secretary
                                    Telecopier: (905) 548-4249

     (b)  If to NAC, to:            25th Floor,
                                    450 Park Avenue
                                    New York, New York 10022
                                    Attention: President
                                    Telecopier: (212) 826-6358

     (c)  If to NSC, to:            4100 Edison Lakes Parkway
                                    Mishawaka, Indiana 46545.
                                    Attention: Kirk Sobecki
                                    Telecopier: (574) 273-7868

          With a copy to:           Piper Rudnick
                                    203 North LaSalle Street

                                       16

<PAGE>

                                    Chicago, Illinois 60601
                                    Attention: Mark Berkoff
                                    Telecopier: (312) 236-7516

     (d)  If to Processor, to:      300 Sprucewood Avenue
                                    P.O. Box 7069
                                    Windsor, Ontario
                                    N9G 3Y6
                                    Attention: Vice President, General Manager
                                    Telecopier:  (519) 250-2149

All communications shall be conclusively deemed to have been received: if
delivered, when delivered; if sent by electronic telecommunication, when
received; and if couriered, on the fifth day after deposited with the courier.

     13.8 This Agreement shall not be modified or amended except by an
instrument in writing signed by the parties hereto.

     13.9 No failure by a party to exercise, nor any delay in exercising nor any
partial exercise by such party of, any right, power or privilege available to
such party hereunder shall operate as a waiver thereof or preclude any other or
further exercise thereof or the exercise by such party of any other right, power
or privilege.

     13.10 If any provision of this Agreement, or the application thereof to a
party hereto, is held illegal, unenforceable or otherwise invalid by any court
or government authority, such holding shall not affect or invalidate any other
provision of this Agreement and, to this end, the parties agree that the
provisions of this Agreement are and shall be severable; provided that, if such
holding affects or invalidates any provision deemed essential by a party to the
satisfactory performance of this Agreement, then upon written notice being given
by such party to the other party, the parties shall promptly negotiate in good
faith to the end that this Agreement may be amended in such manner as may be
necessary to make it fair and equitable to both parties.

                                       17

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused their duly authorized
officers or signatories to execute this Agreement on the date first mentioned
above.

                                DOFASCO INC.

                                By:  John T. Mayberry
                                     ------------------------
                                     Title: Chair and Chief Executive Officer

                                By:  /s/ Joan M.H. Weppler
                                     ------------------------
                                     Title: Vice President
                                            Corporate Administration

                                NKK U.S.A. CORPORATION

                                By:  /s/ Mineo Shimura
                                     ------------------------
                                     Title: President

                                NATIONAL STEEL CORPORATION

                                By:  /s/ Kirk A. Sobecki
                                     ------------------------
                                     Title: Sr. VP & CFO

                                DNN GALVANIZING CORPORATION

                                By:  /s/ Robert Nuttall
                                     ------------------------
                                     Title:  Director

                                       18

<PAGE>

                                    EXHIBIT A

The payments to be made by NSC for Toll Processing Services performed by
Processor for NSC and its Affiliates and in satisfaction of NSC's Take or Pay
Obligations shall be calculated as follows.

Hourly Rate and Other Charges for Line Time:

a)   The rate per Hour for line time (the "Hourly Rate") has been determined
prior to January 1, 2003, based on the budgeted variable cost of running the
Facilities utilizing formulae in use at the time of execution of this Agreement,
and shall be the same rate as is charged to Dofasco and NAC by Processor for use
of Available Line Time. The budget will be reviewed with NSC and comments from
NSC will be included in revising the budget if appropriate.

b)   NSC will be invoiced weekly by Processor for Hourly Rate charges for
Available Line Time used by NSC and its Affiliates for processing each coil of
NSC Steel when shipped from Processor.

c)   NSC will be invoiced monthly by Processor for Hourly Rate charges for the
number of Hours of Committed Line Time in excess of the number of Hours of
Available Line Time actually used by NSC or its Affiliates during such Month,
provided however that, for these purposes, Committed Line Time shall be reduced
to reflect any Hours of Committed Line Time not used by NSC or its Affiliates
but which are used by NAC or Dofasco (or the Affiliates of either of them) or
which are sold by NAC as contemplated in Subsection 3.3(b). Such adjusted
Committed Line Time is referred to in this Exhibit A as Adjusted Committed Line
Time.

d)   NSC will be invoiced weekly by Processor for coating oil charges applicable
to coils of Steel shipped during such week.

Fixed Costs:

a)   An administrative fee (the "Administrative Fee") will be determined prior
to January 1, 2003, based on the budgeted cost of running the Facilities, and
shall be determined on the same basis and in the same manner as the
administrative fee charged to Dofasco and NAC by Processor.

b)   NSC will be invoiced monthly by Processor for the Administrative Fee for
each Month based on the ratio of Adjusted Committed Line Time for such Month to
the Available Line Time during such Month.

c)   NSC will be invoiced by NAC in May 2003 US$1,271,527.93 in respect of Debt
Costs (as defined in the Two Party TPA) and invoiced in November 2003
US$1,239,727.45 in respect of Debt Costs. Such amounts were calculated assuming
NSC would use twenty-five percent (25%) of Available Line Time during each Month
of calendar year 2003, it being understood that such assumption was made solely
for purposes of determining the amount to be set forth in the

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aforesaid invoices, and the amount set forth in such invoices if twenty-five
percent (25%) of all Debt Costs due for the period covered thereby. In the event
the Agreement terminates before an invoice date, NSC shall nevertheless be
obligated to pay a pro rated portion of the invoice amount based on the ratio of
(A) the number of days during 2003 which the Agreement was in effect to (B) 365,
and the obligation of NSC to pay the pro rated portion of the invoice shall
survive the termination of the Agreement. No later than April 30, 2004, NAC and
NSC will recalculate NSC's portion of Debt Costs utilizing the Adjusted
Committed Line Time for the calendar year 2003 (the "Recalculated Debt Cost
Obligation") for purposes of such calculation and NSC shall pay to NAC or NAC
shall pay to NSC (as the case may be) such amounts as are necessary to reconcile
the aggregate amount paid by NSC in respect of Debt Costs (including the amounts
paid in connection with the May invoice and the November invoice and the Rate
Differential calculations set forth in Exhibit B to the Two Party TPA) with the
Recalculated Debt Cost Obligation. The obligation to reconcile the Debt Cost
payments shall survive termination of the Agreement.

d)   NSC will be invoiced following the close of calendar year 2003 for its
proportionate share of RONE Costs and ROFE Costs (each as defined in Exhibit B
to the Two Party TPA) invoiced to NAC under the Two Party TPA. NSC's
proportionate share thereof shall be based on the ratio of Adjusted Committed
Line Time for the calendar year 2003 to 50% of Available Line Time for the
calendar year 2003. In the event that this Agreement terminates before the
invoice date, NSC shall nevertheless be obligated to pay a pro rated portion of
the invoice amount based on the ratio of (A) the number of days during calendar
year 2003 which the Agreement was in effect to (B) 365, and the obligation of
NSC to pay the pro rated portion of the invoice shall survive the termination of
the Agreement.

Adjustments for Variances Between Operating Costs and Total Revenues:

In the event NAC is entitled to a credit or a payment pursuant to Section 5.8 of
the Two Party TPA in respect of a positive variance between Processor's actual
operating costs and Total Revenues (as defined in the Two Party TPA) for 2003 ,
NAC shall pay to NSC a portion of the amount of such credit or payment; and in
the event of a negative variance, NSC shall pay to NAC a portion of the amount
required to be paid by NAC pursuant to Section 5.8 of the Two Party TPA. The
portion to be paid shall be based on the ratio of Adjusted Committed Line Time
for 2003 to the Available Line Time for 2003. Such payment from NAC to NSC or
from NSC to NAC shall be made no later than April 30, 2004 and the obligation to
make such payment shall survive the termination of the Agreement.

Reconciliation:

No later than April 30, 2004, NAC and NSC shall reconcile all outstanding claims
for payment in accordance with the Applicable Policies, including reconciliation
of any adjustments with respect to the Blended Rate (as defined in Exhibit B,
Section 5 of the Two Party TPA).

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Invoices and Payment Terms:

a)   Except as set forth in c) below, payments of invoices for Fixed Costs shall
be due ten (10) days after the invoice date.

b)   Payments of invoices for Hourly Rate and Other Charges for Line Time shall
be due within thirty (30) days after the invoice date.

c)   Payments for invoices for Debt Costs shall be due as to the May 2003
invoice on or before June 30, 2003, and as to the November 2003 invoice on or
before December 31, 2003, and payment for the invoice for RONE Costs and ROFE
Costs shall be due within ten (10) days after the invoice date.

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                                    EXHIBIT B

The payments to be made by NSC to Processor as full compensation for the Other
Services performed by Processor for NSC or its Affiliates shall be calculated as
follows:

NSC will be invoiced weekly in respect of amounts payable for Other Services
performed by Processor for NSC and its Affiliates. Such invoices shall contain
the same type and detail of information as has been included in such invoices as
delivered by Processor to NSC prior to the date of this Agreement for services
in the nature of Other Services. The rates to be charged for Other Services
shall be designed to recover the cost of providing such Other Services, and
shall not exceed the rates charged by Processor to Dofasco and NAC for such
Other Services. The rates to be charged for the rewinding and inspection
services and for the packaging services of the nature described in Subsections
2.3(a) and (b) shall be determined in the same manner as determined as of the
date of this Agreement for purposes of the Current TPA, it being understood that
the rates determined in such manner for purposes of this Agreement for the
rewinding and inspection services and for the packaging services of the nature
described in Subsections 2.3(a) and (b) may differ from the rates charged
therefor under the Current TPA. The rates to be charged for any other services
as contemplated in Subsection 2.3(c) shall be determined by mutual agreement
from time to time of Processor and Customer.

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                                  SCHEDULE 1.4

                               Applicable Policies

          1. The Claims Policy and Procedure

          2. The Cost Savings Policy

          3. The Line Time Policy

          all as further identified in the Two Party TPA

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