Document:

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                                                                     Exhibit 4.7

                         OPTION TO PURCHASE COMMON STOCK
                         OF GENEVA STEEL HOLDINGS CORP.

                  This certifies that, for value received, Ken C. Johnsen
("Executive") is hereby granted options to purchase from Geneva Steel Holdings
Corp., a Delaware corporation (the "Company"), 80,000 shares of common stock of
the Company, upon the terms and subject to the conditions set forth below.

         1.       Definitions. For purposes of this Option Agreement, except as
otherwise provided or unless the context otherwise requires, all capitalized
terms not otherwise defined have the meanings ascribed to them in this Section
1. Whenever the context requires, such terms shall include the plural number as
well as the singular.

         "A Option" shall mean an option to purchase from the Company 40,000
shares of common stock of the Company, upon the terms and subject to the
conditions set forth herein.

         "B Option" shall mean an option to purchase from the Company 40,000
shares of common stock of the Company, upon the terms and subject to the
conditions set forth herein.

         "Business Day" means any day except Saturday, Sunday and any other day
on which commercial banks in Salt Lake City, Utah are authorized by law to
close, except that for the purpose of Section 5, "Business Day" means any day
other than a Saturday, Sunday and any day on which the Common Stock is not
traded on an exchange or in a market.

         "Cause" means circumstances where the Executive (i) is convicted of a
felony, a crime of moral turpitude or any crime involving the Company or its
subsidiaries (other than pursuant to actions taken at the direction or with the
approval of the Board of Directors of the Company or board of directors or
managing board of any subsidiary), (ii) is found by reasonable determination of
the Company, made in good faith, to have engaged in (A) willful misconduct, (B)
willful or gross neglect, (C) fraud, (D) misappropriation or (E) embezzlement in
the performance of his duties or (iii) willfully and repeatedly fails to
discharge his duties as an employee of the Company or its subsidiaries.

         "Change of Control" means a Change of Control as defined in the Term
Loan Agreement, dated as of January 3, 2001, among Geneva Steel LLC, as
borrower, Citicorp USA, Inc., as agent on behalf of the lenders thereto, and the
other lenders named therein.

         "Common Stock" means the common stock of the Company, par value, $.01
per share, or any other class of stock resulting from successive changes or
reclassifications of the Common Stock.

         "Company" is defined in the introductory paragraph.

         "Control" means, with respect to any Person, the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities or other beneficial interest, or by contract
or otherwise.
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         "Executive" is defined in the introductory paragraph.

         "Exercise Price" is defined in Section 4(d).

         "Expiration Date" has the meaning set forth in Sections 4(a) and 4(b).

         "Fair Market Value" is defined in Section 5(b).

         "Issuance or Sale Date" is defined in Section 5(a)(ii).

         "Operating Company" means Geneva Steel LLC, a Delaware limited
liability company.

         "Options" means the A Option and the B Option.

         "Option Plan" means the Geneva Steel Holdings Corp. 2001 Stock Option
Plan, adopted under the Third Amended Plan of Reorganization of Geneva Steel
Company, as modified.

         "Optionee" means the Executive and any Permitted Transferee who holds
the Options from time to time.

         "Permitted Transferee" means any of the following: (i) any revocable
trust created for the benefit of the Executive during the lifetime of the
Executive of which the Executive (whether in the capacity as a trustee, settlor
or otherwise) has voting and dispositive control over the assets held by such
trust, (ii) any irrevocable trust created for the benefit of the Executive
and/or any spouse of the Executive and/or any descendant of the Executive (which
term shall include any adopted child or stepchild of the Executive) of which the
Executive is a trustee having voting and dispositive control over the assets
held by such trust, (iii) a custodianship for the benefit of a minor who is a
descendant of the Executive (which term shall include any adopted child or
stepchild of the Executive), to which any transfer is made pursuant to and which
is valid under the Uniform Transfers to Minors Act, the Uniform Gifts to Minors
Act or a substantially similar act, and of which the Executive is a custodian
having voting or dispositive control over the assets held pursuant to such
custodianship, (iv) any partnership, limited liability company or similar entity
all of the ownership interests in which are held by the Executive alone, or by
the Executive and any spouse of the Executive and/or any descendant of the
Executive (which term shall include any adopted child or stepchild of the
Executive) and/or any Person referred to in clauses (i) - (iii) above, which is
Controlled by the Executive, (v) any corporation (including, without limitation,
any direct or indirect subsidiary of any such corporation) which is wholly-owned
directly or indirectly, by the Executive alone or by the Executive and any one
or more Persons referred to in clauses (i) - (iv) above and which is Controlled
by the Executive, and (vi) the initial transferee of any Options that paid
consideration for such transfer; provided, however, that any Options transferred
for value shall not be further transferable or assignable except to a legal
guardian for, or estate of, such initial transferee that paid consideration for
such Options.

         "Person" means an individual, partnership, corporation, limited
liability company, trust or other entity of whatever nature.

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

         "Termination" means any of (i) a discharge of the Executive, (ii)
reduction in compensation of the Executive, (iii) the assignment of the
Executive to any duties inconsistent in any material respect to the Executive's
position (including status, offices, title and reporting requirements),
authority, duties or responsibilities or (iv) requiring the Executive to be
based at any office or location that is more than seventy-five (75) miles from
Vineyard, Utah.

         2.       Issuance of the Option. The Options are being issued to Ken C.
Johnsen as of May 22, 2001.

         3.       Registration; Transfers and Exchanges. An Optionee may
transfer the Options, in whole or in part, from time to time, to one or more
Permitted Transferees, by surrendering this Option Agreement, with the form of
assignment attached to this Agreement as Exhibit A duly executed, at the office
of the Company (or such other office or agency of the Company as it may
designate by notice in writing to the Optionee). Upon such surrender, the
Company shall issue and deliver to the Optionee a new Option Agreement, in the
name of the Permitted Transferee or Permitted Transferees and in the
denomination or denominations specified in such instrument of assignment. If the
right to purchase less than all of the shares of Common Stock issuable upon
exercise of the Options shall be so transferred, the Optionee shall be entitled
to receive a new Option Agreement covering in the aggregate the number of shares
of Common Stock with respect to which the right to purchase shall not have been
so transferred, and the transferee or transferees shall be entitled to receive a
new Option Agreement covering in the aggregate the remaining number of shares of
Common Stock issuable upon the exercise of Options. An Option Agreement which is
surrendered upon transfer of any Options shall be canceled by the Company.

         4.       Duration; Exercise of Option.

                  (a) The A Option expires on May 22, 2011.

                  (b) The B Option expires on May 22, 2011, unless the closing
price of the common stock for the Company fails to close above $2.32 for (a) at
least five (5) consecutive trading days, or (b) five trading days out of ten
consecutive trading days, in each case during the period of June 30, 2001 and
May 22, 2006. If either target trading price is not met during such period, the
B Option shall expire on May 22, 2006.

                  (c) The exercisability of these Options accelerates upon the
death or disability of the Executive, a Change of Control of the Company or the
Operating Company, or the Termination of the Executive's employment with either
the Company or the Operating Company other than for Cause.

                  (d) The exercise price of the A Option is $1.16 per share; the
exercise price of the B Option is $2.32 per share.

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                  (e) The Options may be exercised, in whole or in part, to the
extent it has become exercisable, on any Business Day on or prior to the
applicable Expiration Date. After the close of business on the applicable
Expiration Date, the Options to the extent same remains unexercised, shall lapse
and become void and of no value.

                  (f) Exercise of the Options shall be made only by a written
notice in substantially the form of Exhibit B delivered in person or by mail to
the Secretary of the Company at the Company's principal executive office (or
such other office or agency of the Company as it may designate by notice in
writing to the Optionee), specifying the number of shares of Common Stock to be
purchased and accompanied by payment therefor and otherwise in accordance with
the terms of this Option Agreement. The Exercise Price for any shares of Common
Stock purchased pursuant to the exercise of the Option shall be paid, in the
discretion of the Optionee: (i) in cash (including cash equivalents), (ii) by a
broker-assisted delivery of shares of Stock already owned by the optionee for at
least six (6) months, (iii) by a broker-assisted "cashless exercise" effected in
accordance with rules adopted by the Committee and reasonably acceptable to
optionee or (iv) any combination of the foregoing. Any shares of Common Stock
withheld upon exercise as payment of the Exercise Price shall be valued at their
Fair Market Value on the trading day preceding the date of exercise of the
Options. The Optionee shall deliver the notice of exercise along with this
Agreement to the Secretary of the Company, who shall endorse hereon a notation
of such exercise and return this Option Agreement to the Optionee.

                  (g) On or before the tenth (10th) day (or if the 10th day
shall not be a Business Day, then on the next Business Day thereafter) after
each exercise of these Options, the Company shall issue and deliver to the
Optionee, in the name of the Optionee or any Permitted Transferee, a certificate
for the shares of Common Stock issuable upon such exercise, to the extent shares
are issuable. Such certificate shall be deemed to have been issued, and any
person so designated to be named therein shall be deemed to have become the
holder of record of such shares of Common Stock, as of the date of the exercise
of the Options.

         5.       Adjustment of Number of Shares.

                  (a) The number of shares of Common Stock acquired upon the
exercise of the Option shall be subject to adjustment from time to time, as
follows:

                      (i) In case the Company shall (A) subdivide or split the
outstanding shares of its Common Stock into a larger number of shares, (B)
combine the outstanding shares of its Common Stock into a smaller number of
shares, or (C) reclassify the outstanding shares of its Common Stock, each
Optionee shall thereafter be entitled to receive upon the exercise of the
Options (subject to such further adjustments as may be required pursuant to this
Section 5(a)(i) and Sections 5(a)(ii)-(v)) the number of shares of Common Stock
of the Company which at the date of such conversion it would have owned and been
entitled to receive had such Options been exercised immediately prior to the
happening of the first of such events to occur after the date of this Agreement
and prior to such conversion. An adjustment made pursuant to this Section
5(a)(i) shall become effective immediately upon the effectiveness of a
subdivision, split, combination or reclassification.

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                      (ii) Except as provided in Section 5(c), in case the
Company shall at any time or from time to time sell or issue shares of Common
Stock (or securities convertible into shares of Common Stock) at a price per
share (or having a conversion price per share) less than the Fair Market Value
as of the date of issuance or sale (the "Issuance or Sale Date") of such shares
or of such convertible securities, then, and in each such case, the number of
shares of Common Stock for which the Options are exercisable shall be adjusted
so that the Optionee shall be entitled to receive, upon the exercise thereof,
the number of shares of Common Stock determined by multiplying (A) the number of
shares of Common Stock for which such Options were exercisable on the day
immediately prior to the Issuance or Sale Date by (B) a fraction, (1) the
numerator of which shall be the sum of (x) the number of shares of Common Stock
outstanding on the day immediately prior to the Issuance or Sale Date, and (y)
the number of additional shares of Common Stock issued or sold (or into which
the convertible securities may be converted), and (2) the denominator of which
shall be the sum of (x) the number of shares of Common Stock outstanding on the
day immediately prior to the Issuance or Sale Date, and (2) the number of shares
of Common Stock which the aggregate consideration receivable by the Company for
the total number of shares of Common Stock so issued or sold (or into which the
convertible securities may be converted) would purchase at such Fair Market
Value on the Issuance or Sale Date. An adjustment made pursuant to this Section
5(a)(ii) shall be made on the next Business Day following the Issuance or Sale
Date and shall be effective retroactively immediately after the close of
business on such date. For purposes of this Section 5(a)(ii), the aggregate
consideration receivable by the Company in connection with the issuance or sale
of shares of Common Stock or of securities convertible into shares of Common
Stock shall be deemed to be equal to the sum of the aggregate offering price
(before deduction of reasonable underwriting discounts or commissions and
expenses) of all such securities sold plus the minimum aggregate amount, if any,
payable upon conversion of any such convertible securities into shares of Common
Stock. Notwithstanding the foregoing, in the event that this Section 5(a)(ii)
shall apply because the Company shall issue to all holders of its Common Stock
as a class any rights, warrants or options enabling them to subscribe for or
purchase shares of Common Stock, the Issuance or Sale Date shall be the record
date relating thereto.

                      (iii) Except as provided in Section 5(c), in case the
Company shall distribute to all holders of its shares of Common Stock as a class
evidences of its indebtedness, securities (other than Common Stock), assets
(other than cash dividends), or rights, warrants or options entitling them to
subscribe for or purchase any of its securities, then in each such case the
number of shares of Common Stock into which the Options shall thereafter be
exercisable shall be determined by multiplying (A) the number of shares of
Common Stock for which the Options were exercisable immediately prior to the
record date for determination of shareholders entitled to such distribution by a
fraction (B), (1) the numerator of which shall be the Fair Market Price per
share of Common Stock at such record date, and (2) the denominator of which
shall be such Fair Market Value per share less the amount of such cash dividend
and/or the fair value (as determined by the Company's independent accountants or
such investment bank or other agent selected by the Board of Directors and
reasonably acceptable to the Optionee, whose determination shall be conclusive
and shall be described in a statement filed with the Company) of the portion of
the evidences of indebtedness, securities (other than Common Stock), assets
(other than cash dividends) or rights, warrants or options so distributed
applicable to one share of Common Stock. An adjustment made

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pursuant to this Section 5(a)(iii) shall be made upon the opening of business on
the next Business Day following the date on which any such dividend or
distribution is made and shall be effective retroactively immediately after the
close of business on the record date fixed for the determination of shareholders
entitled to receive such dividend or distribution.

                      (iv) In case the Company shall pay or make a dividend or
other distribution on any class of capital stock of the Company in shares of
Common Stock, then the number of shares of Common Stock for which the Options
shall thereafter be exercisable shall be determined by multiplying the number of
shares of Common Stock for which the Options were exercisable immediately prior
to the record date for determination of shareholders entitled to such dividend
or other distribution by a fraction, (A) the numerator of which shall be the sum
of the number of shares of Common Stock outstanding at such record date and the
total number of shares of Common Stock constituting such dividend or other
distribution, and (B) the denominator of which shall be the number of shares of
Common Stock outstanding at such record date. An adjustment pursuant to this
Section 5(a)(iv) shall become effective immediately after such record date.

                      (v) If any event occurs as to which, in the good faith
judgment of the Board of Directors of the Company, the other provisions of this
Section 5 are not strictly applicable, then the Board of Directors of the
Company may appoint its regular independent auditors or another firm of
independent public accountants of recognized national standing which shall give
their opinion upon the adjustment, if any, on a basis consistent with the
essential intent and principles of such provisions, necessary to preserve,
without dilution, the rights of the Optionee. Upon receipt of such opinion, the
Board of Directors of the Company shall forthwith make the adjustments described
therein. In the event the Board of Directors determines not to appoint its or
other independent public accountants, and the Executive in good faith reasonably
determines that the appointment of such independent public accountant is
necessary or appropriate, the Executive shall be entitled to appoint such
independent public accountants as the Executive reasonably determines for
purposes of making the determination under this Section 5(a)(v).

                  (b) Fair Market Value per share of Common Stock on any date
shall be deemed to be (i) the average of the daily closing prices for the twenty
consecutive Business Days ending on the Business Day before the day in question
or (ii) in the event that the Issuance or Sale Date shall be a record date, the
average of the daily closing prices for the twenty (20) consecutive Business
Days commencing thirty five Business Days before such record date. The closing
price for each day shall be the last reported sales price on the composite tape
or, in case no such reported sale takes place on such day, the average of the
reported closing bid and asked prices, in either case on the principal national
securities exchange on which the Common Stock is listed or admitted to trading
or, if not listed or admitted to trading on any national securities exchange,
the average of the closing bid and asked prices on the National Association of
Securities Dealers Automated Quotation System or, if the Common Stock is not
then so quoted, by any New York Stock Exchange member firm selected from time to
time by the Company in good faith for that purpose.

                  (c) Notwithstanding the foregoing provisions of this Section
5, (i) no adjustment in the number of shares of Common Stock for which any
Option is exercisable shall be required unless such adjustment would require an
increase or decrease in such number of shares of at least

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one percent 1%, provided any adjustments which by reason of this Section 5(c)
are not required to be made shall be carried forward and taken into account in
any subsequent adjustment, and (ii) no adjustment in the number of shares of
Common Stock for which any Options are exercisable shall be required as a result
of the exercise of any options granted under the Option Plan. All calculations
under this Section 5 shall be made to the nearest cent or to the nearest 1/100th
of a share, as the case may be.

                  (d) Whenever the number of shares of Common Stock for which
the Options are exercisable is adjusted as provided in this Section 5, the
Company shall promptly mail to the Optionee a notice stating that the number of
shares of Common Stock for which the Options are exercisable has been adjusted
and setting forth the new number of shares of Common Stock (or describing the
new stock, securities, cash or other property) for which the Options are
exercisable as a result of such adjustment, a brief statement of the facts
requiring such adjustment and the computation thereof, and when such adjustment
became effective.

                  (e) In case at any time the Company shall be party to any
transaction (including, without limitation, a consolidation or merger of the
Company with another corporation or a sale or transfer of all or part of the
Company's assets for cash, securities or other property) in which the previously
outstanding Common Stock shall be changed into or exchanged for different
securities of the Company or common stock or other securities of another
corporation or interests in a noncorporate entity or other property (including
cash) or any combination of any of the foregoing (each such transaction being
herein called the "Transaction" and the date of consummation of the transaction
being herein called the "Closing Date"), then lawful and adequate provisions
shall be made as a part of the terms of the Transaction so that (A) the Options
shall continue to remain outstanding, except that (B) the Options shall
thereafter be exercisable for, in lieu of the Common Stock issuable upon such
exercise prior to the Closing Date, the amount of securities or other property
to which the Optionee would actually have been entitled as a holder of shares of
Common Stock upon the consummation of the Transaction if the Optionee had
exercised such Options immediately prior to such Transaction (subject to
adjustments from and after the Closing Date nearly equivalent as possible to the
adjustments provided for in this Section 5(e)). In case securities or properties
other than common stock shall be issuable or deliverable upon conversion as
aforesaid, then all references in this Section 5 shall be deemed to apply, so
far as appropriate and as nearly as may be, to such other securities or
properties. Notwithstanding the foregoing, in the event the Company shall be
party to any Transaction in which the previously outstanding Common Stock shall
be changed into or exchanged for common stock or other securities of another
corporation, and such common stock or other securities are not traded on a
securities exchange or other public market, then the provisions of this Section
5(e) shall be deemed satisfied if the Executive shall receive fair and adequate
consideration in lieu of the Options, based on a good faith valuation of the
Company and the Transaction by an investment banking firm reasonably acceptable
to the Company and the Executive.

                  (f) In the event that at any time, as a result of an
adjustment made pursuant to the provisions of Section 5(a), the Optionee shall
become entitled to receive any shares of the Company other than shares of Common
Stock, thereafter the number of such other shares so receivable upon exercise of
the Options shall be subject to adjustment from time to time in a manner and on
terms

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as nearly equivalent as practicable to the provisions with respect to the Common
Stock contained in Section 5(a), and the other provisions of this Section 5 with
respect to the Common Stock shall apply on like terms to any such other shares.

                  (g) In connection with the exercise of the Options, no
fractions of shares of Common Stock shall be issued, but in lieu thereof the
Company shall pay a cash adjustment in respect of such fractional interest in an
amount equal to such fractional interest multiplied by the Fair Market Value per
share of Common Stock on the day on which such Options are deemed to have been
exercised.

                  (h) Nothing contained in this Option Agreement shall be
construed as conferring upon the Optionee the right to vote or receive dividends
or to be deemed for any purpose the holder of shares of Common Stock or of any
other securities of the Company which may at any time be issuable on the
exercise of the Options or be construed to confer upon the Optionee, as such,
any of the rights of a shareholder of the Company or any right to vote upon any
matter submitted to shareholders at any meeting thereof, or to give or withhold
consent to any corporate action (whether upon any recapitalization, issue of
stock, reclassification of stock, change of par value, consolidation, merger,
conveyance, or otherwise) or, except as provided herein, to receive notice of
meetings, or to receive dividends or subscription rights or otherwise, until the
Options shall have been exercised as provided herein.

                  (i) Irrespective of any adjustments in the number or kind of
shares purchasable upon the exercise of the Options, this Option Agreement may
continue to express the same number and kind of shares as are stated in this
Option Agreement as initially issued. Notwithstanding the foregoing, the Company
may, at its discretion, issue a new Option Agreement in substantially this form
to reflect any adjustment or change in the number or kind or class of shares of
stock or other securities or property purchasable under the Options.

         6.       Reservation of Shares. The Company shall at all times reserve
and keep available, free from preemptive rights, out of the aggregate of its
authorized but unissued shares of Common Stock or its authorized and issued
shares of Common Stock held in its treasury, for the purpose of enabling it to
satisfy any obligation to issue shares of Common Stock upon exercise of the
Options, the full number of shares of Common Stock deliverable upon the exercise
of the Options in full. The Company covenants that all shares of Common Stock
which may be issued upon the exercise of the Options shall, upon issuance, be
fully paid and nonassessable and free from all company taxes, liens, charges and
security interests with respect to the issue thereof (other than income or
capital gains taxes to recipients).

         7.       Payment of Taxes. The Company shall pay all documentary stamp
taxes, if any, attributable to the issuance of Options and issuance of shares of
Common Stock or other securities upon the exercise of Options, provided the
Company shall not be required to pay any tax or taxes which may be payable in
respect of any transfer involved in the issue of any certificates for shares of
Common Stock in a name other than that of the Optionee, and the Company shall
not be required to issue or deliver such certificates unless or until the
persons requesting the issuance thereof shall

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have paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid.

         8.       Obtaining of Governmental Approvals and Stock Exchange
Listings. The Company shall take all reasonable action which may be necessary to
obtain and keep effective any and all permits, consents and approvals of
governmental agencies and authorities, and shall make any and all filings under
Federal and State securities laws, necessary in connection with the issuance,
distribution and transfer of Options Agreements, the exercise of the Options,
and the issuance, sale, transfer and delivery of shares of Common Stock upon
exercise of Options. The Company shall use reasonable efforts to have the shares
of Common Stock which are issuable upon the exercise of the Options listed on
the securities exchange, if any, on which the then outstanding shares of Common
Stock are listed.

         9.       Notices to Optionee.

                  (a) Upon any adjustment of the number of shares of Common
Stock with respect to which the Options are exercisable pursuant to Section 5
hereof, the Company within twenty (20) days thereafter shall cause notice of
such adjustment to be mailed by first class mail, postage prepaid, to the
Optionee. Where appropriate, such notice may be mailed in advance and included
as a part of any notice required to be mailed under any other provision of this
Section 9.

                  (b) In case:

                      (i) the Company shall take action to make any
distribution to the holders of its Common Stock;

                      (ii) the Company shall take action to offer for
subscription pro rata to the holders of its Common Stock any securities of any
kind;

                      (iii) the Company shall take action to accomplish any
capital reorganization, or reclassification of the capital stock of the Company,
or consolidation or merger to which the Company is a party and for which
approval of any shareholders of the Company is required, or the sale or transfer
of all or substantially all of the assets of the Company; or

                      (iv) the Company shall take action with regard to a
voluntary or involuntary dissolution, liquidation or winding up of the Company;

then the Company shall (A) in case of any such distribution or subscription
rights, at least fifteen (15) days prior to the date or expected date on which
the books of the Company shall close or a record shall be taken for the
determination of holders entitled to such distribution or subscription rights,
and (B) in the case of any such reorganization, reclassification, consolidation,
merger, sale, transfer, dissolution, liquidation or winding up, at least fifteen
(15) days prior to the date or expected date when the same shall take place,
cause written notice thereof to be mailed to the Optionee. Such notice in
accordance with the foregoing clause (A) shall also specify, in the case of any
such

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distribution or subscription rights, the date or expected date on which the
holders of Common Stock shall be entitled thereto, and such notice in accordance
with the foregoing clause (B) shall also specify the date or expected date on
which the holders of Common Stock shall be entitled to exchange their Common
Stock for securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up, as the case may be. If any action referred to in this
subsection 9(b) requires the approval of holders of shares of Common Stock, the
Company shall cause notice of the proposed action and the record date
for the determination of holders of Shares entitled to vote on such matter to be
mailed to each of the registered holders of the Option Certificates at his
address appearing on the Option Register, at least ten (10) days prior to such
record date, by first class mail, postage prepaid. The failure to give any
notice required by this subsection 9(b) or any defect therein shall not affect
the legality of any such reclassification, consolidation, merger, conveyance,
transfer, dissolution, liquidation or winding up, or the vote upon any action.

         10.      Notices to the Company.  Any notice pursuant to a Option
Certificate shall be sufficiently given to the Company, if sent by first class
mail, postage prepaid, or by hand addressed to:

                               Geneva Steel Holdings Corp.
                               10 South Geneva Road
                               Vineyard, Utah 84058
                               Attn: Corporate Secretary

                  with a copy to:

                               Stephen E. Garcia
                               Kaye Scholer LLP
                               311 S. Wacker Drive
                               Suite 6200
                               Chicago, Illinois 60606

         11.      Miscellaneous

                  (a) Costs and Expenses. The Company shall pay as incurred, to
the full extent permitted by law, all legal fees and expenses which the Optionee
may reasonably incur as a result of any contest by the Company, the Optionee or
others of the validity or enforceability of, or liability under, any provision
of this Agreement, plus, in each case in which payment is owed by the Company,
interest on any delayed payment at the applicable Federal rate provided for in
Section 7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended.
Notwithstanding the foregoing, the Company and the Optionee acknowledge and
agree that legal fees and expenses of the Optionee in connection with a contest
of the validity or enforceability of, or liability under, any provision of this
Agreement in which the Optionee does not prevail, shall not be reimbursable
pursuant to this Section 11(a). The Company acknowledges and agrees that in the
event the Optionee does not prevail, in no event shall the Optionee be required
to pay any legal fees and expenses of the Company.

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                  (b) Successors. All the covenants and provisions hereof shall
be binding upon any successors and assigns of the Company.

                  (c) Termination. The rights granted pursuant to the terms of
this Option Agreement shall terminate at the close of business on the Expiration
Date.

                  (d) Governing Law. This Option Agreement shall be deemed to be
a contract made under the laws of the State of Delaware and for all purposes
shall be governed by and construed in accordance with the laws of such state
applicable to contracts to be made and performed entirely within such state.

                  (e) Benefits of this Agreement. Nothing herein shall be
construed to give to any person or corporation other than the Company, and the
Optionee any legal or equitable right, remedy or claim hereunder.

                  IN WITNESS WHEREOF, the Company and the Optionee have caused
this Option Agreement to be duly executed as of the day and year first above
written.

                                         GENEVA STEEL HOLDINGS CORP.

                                         By:------------------------------
                                            Name:
                                            Title:

ATTEST:

--------------------------------
Name:
Title:

                                            ------------------------------
                                            Ken C. Johnsen

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                                    EXHIBIT A
                               FORM OF ASSIGNMENT
                         (To be executed by the Optionee
                   if Optionee desires to transfer the Option)

                  FOR VALUE RECEIVED ________________ hereby sells, assigns and
transfers unto _____________________

          ____________________________________________________________
                  (Please print name and address of transferee)
          ____________________________________________________________

          ____________________________________________________________

          ____________________________________________________________

          ____________________________________________________________

this [A or B, applicable] Option, together with all right, title and interest
therein, and does hereby irrevocably constitute and appoint
________________________ Attorney, to transfer the within Option on the books
of the within-named Company, with full power of substitution.

Dated: ____________________
                                    ______________________________________
                                    Signature

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                                    EXHIBIT B
                               NOTICE OF EXERCISE
                         (To be executed if the Optionee
                         desires to exercise the Option)

To:      Geneva Steel Holdings Corp.

                  The undersigned hereby irrevocably elects to exercise the [A
or B] Option evidenced by the Option Agreement dated __________ with respect to
_________ shares of Common Stock issuable upon the exercise of such Option and
requests that certificates for such shares of Common Stock be issued in the name
of:

                  Payment of the exercise price for such shares will be made as

follows: ______________________________________________________________________.

Please insert social security or other identifying number: __________________

                                       ______________________________________
                                       (Please print name and address)

                                       ______________________________________

                                       ______________________________________

                                       ______________________________________

Dated:  __________________

                                     NOTICE

The signature(s) in the foregoing Subscription Form must correspond to the name
as written upon the face of this Option Agreement in every particular, without
alteration or enlargement or any change whatsoever.

                                       13<PAGE>   1

                                                                   Exhibit 10.1

                           LOAD CURTAILMENT AGREEMENT

         This Load Curtailment Agreement ("Agreement") is made and entered into
effective the 1st day of June, 2001, by and between GENEVA STEEL L.L.C, a
Delaware Limited Liability Company ("Geneva"), and Utah Power & Light Company,
an assumed business name of PACIFICORP, an Oregon corporation ("Utah Power"),
hereinafter referred to individually as "Party" or collectively as "Parties."

                                    RECITALS

A.       Utah Power and Geneva's predecessor in interest entered into an
         agreement dated February 10, 1989, as amended ("the 1989 Agreement"),
         by which Utah Power supplies interruptible power and energy to Geneva's
         steel production facility in Vineyard, Utah.

B.       Utah Power and Geneva entered into the Generation Cooperation Agreement
         dated July 1, 1997 (the "Cooperation Agreement"), by which Utah Power
         may call on Geneva to increase the output of its steam electric
         generating plant (the "Generating Plant") at its steel production
         facility up to 1,314 hour per contract year as an offset to Geneva's
         demand for electric service under the 1989 Agreement.

C.       Geneva and Utah Power entered into the Supplemental Generation

         Agreement dated December 1, 2000, as amended ("Supplemental Agreement")
         pursuant to which Utah Power agreed to compensate Geneva for certain
         Supplemental Generation that Geneva offered to generate. Concurrent
         with the execution of this Agreement, the Supplemental Agreement is
         being amended to require Geneva to use reasonable commercial efforts to
         generate, and to require Utah Power to purchase, Supplemental
         Generation made available by Geneva outside of the peak hours covered
         by this Agreement.

D.       The parties now desire to enter into this Agreement pursuant to which
         Geneva will curtail load during certain peak hours in exchange for
         compensation as provided herein.

         NOW, THEREFORE, in consideration of the mutual promises contained
herein, the Parties agree as follows:

1.       DEFINITIONS

         a. "Cooperation Agreement Energy" is the amount of energy generated by
Geneva when called upon by PacifiCorp under the Cooperation Agreement for any
given hour, up to a maximum of 10 MWh per hour.
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         b. "Curtailed Energy" means the amount of electrical load reduced by
Geneva from PacifiCorp's system during a Load Curtailment Period. Curtailed
Energy is intended to reflect the amount of energy that Geneva otherwise would
likely have consumed during peak hours but for this Agreement. The Curtailed
Energy for each hour during each Load Curtailment Period will be measured as (i)
the difference between (A) the Reference Usage Level for that day and (B) any
Delivered Energy for that hour; or (ii) the sum of (A) the Reference Usage Level
for that day and (B) any Returned Energy for that hour, up to a maximum of the
Cooperation Agreement Energy for that hour; (iii) minus, in either case, the
Cooperation Agreement Energy for that hour.

         c. "Day" means the 24-hour period HE 0100 to HE 2400.

         d. "Delivered Energy" means for any given hour any energy received by
Geneva from PacifiCorp during a Load Curtailment Period as measured in MWh that
hour at the Tie Lines

         e. "Excess Energy" means any energy utilized by Geneva from PacifiCorp
in excess of 7.0 MWh for any hour during any Load Curtailment Period, except as
provided in Section 6. Excess Energy shall be measured each hour by the interval
metering equipment at the Tie Lines.

         f. "Excess Energy Charges" means the total Excess Energy for any
calendar day times 104% of the actual PV Daily On-Peak Index for that day.

         g. "Facility" means Geneva's facilities to which PacifiCorp currently
provides electric power and energy located in Vineyard, Utah. The Facility
includes the electrical load associated with this Agreement.

         h. "HE" means hour ending, Prevailing Mountain Time.

         i. "HLH" means HE 0700 through HE 2200 each Monday through Saturday
except during NERC-defined holidays.

         j. "LLH" means HE 0100 through HE 0600, plus HE 2300 and HE 2400, on
each Monday through Saturday and all hours on Sunday and all hours on
NERC-defined holidays, which are as follows during the term of this Agreement:

            Independence Day - July 4, 2001 Wednesday
            Labor Day - September 3, 2001 Monday
            Thanksgiving Day November 22, 2001 Thursday

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         k. "Load Curtailment Period" means HE 1400 through HE 2100, each Monday
through Friday except during NERC-defined holidays.

         l. "NERC" means the North American Electric Reliability Council.

         m. "PV Daily On-Peak Index" means the Dow Jones(TM) Palo Verde firm on-
peak index as reported in the Wall Street Journal for each Monday through
Saturday, excluding NERC-defined holidays; provided, in the event the PV Daily
On-Peak Index is not reported for any given day then the non-zero value posted
from the previous like day shall be utilized; provided further, in the event a
value is ultimately reported by Dow Jones for the day in question, prior to the
point in time monthly invoices are prepared hereunder, then such subsequently
reported value shall be utilized.

         n. "Reference Usage Level" for any given Day means the rolling average
MW for a single blast furnace operation delivered by Utah Power to Geneva at the
Tie Lines during LLH periods over the previous seven week Days (excluding any
day in which Geneva operated two blast furnaces), plus the positive difference
between (i) the average hourly generation provided by Geneva's Generating Plant
and (ii) the average of the applicable Baseline Generation Capability under the
terms of the Supplemental Agreement during LLH periods over the same seven Days.

         o. "Remaining Inadvertent Spill" means for any hour any positive
difference between Returned Energy and Cooperation Agreement Energy for that
hour.

         p. "Returned Energy" means for any given hour any energy (in the form
of inadvertent spill) delivered from Geneva's generator to PacifiCorp during a
Load Curtailment Period as measured in MWh that hour at the Tie Lines.

         q. "Start Date" means June 1, 2001, or such other date as may be
mutually agreed to by the parties.

         r. "Tie Lines" means the points of interconnection between PacifiCorp's
electrical system and the electrical facilities owned by Geneva.

2.       PEAK HOURS CURTAILMENT

         During the term of this Agreement, Geneva will use best reasonable
efforts to curtail its electricity consumption such that no energy is delivered
from PacifiCorp to Geneva during each Load Curtailment Period by altering or
suspending all or part of its operations at its Geneva Steel manufacturing
facilities during those hours.

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3.       TERM / TERMINATION

         The term of this Agreement shall begin on the Start Date and end no
later than November 30, 2001. Neither party may terminate this Agreement prior
to September 15, 2001. Either party may terminate this Agreement upon 30 days'
prior written notice effective any time after September 15, 2001. This Agreement
is subject to approval by the Utah Public Service Commission.

4.       LOAD CURTAILMENT PAYMENTS

         PacifiCorp will pay Geneva for all Curtailed Energy each hour at the
rate of 104% of the published PV Daily On-peak Index for that Day for each MWh.
PacifiCorp will pay Geneva for any Remaining Inadvertent Spill each hour at the
rate of 75% of the published PV Daily On-peak Index for that Day for each MWh.
Examples of the calculation of payments for Curtailed Energy are appended hereto
as Attachment "A." In the event Geneva's interval meter read at the Tie Line
exceeds 7.0MWh in any hour during a day of a Load Curtailment Period (other than
by reason of outages as specified in Section 6), PacifiCorp shall not be
obligated to make the payments for Curtailed Energy described in this Section 4
for that Day of that Load Curtailment Period.

5.       EXCESS ENERGY CHARGES

         Geneva will pay Excess Energy Charges to PacifiCorp for any Excess
Energy utilized by Geneva. Geneva will not be charged under the 1989 Agreement
for Excess Energy. The sole consequence or remedy for the use of Excess Energy
by Geneva or for any failure by Geneva to curtail load shall be the payment of
Excess Energy Charges as provided in this Section 5 and forfeiture of daily
payments for Curtailed Energy as provided in Section 4. Any energy utilized by
Geneva from PacifiCorp during any periods other than a Load Curtailment Period
or during any Load Curtailment Period that is not Excess Energy shall be paid
for by Geneva under the terms of the 1989 Agreement.

6.       OUTAGES

         Geneva shall make best reasonable efforts to conduct all routine
generator equipment maintenance during hours outside the Load Curtailment Period
and to postpone any planned major generator maintenance until this Agreement
terminates. To the extent Geneva reasonably determines it to be necessary,
Geneva may pre-schedule a consecutive two-week period after September 15, 2001,
at a time reasonably acceptable to PacifiCorp, to perform scheduled maintenance
on its generator and associated equipment. During such scheduled outage, and for
the period of any unscheduled outages, Excess Energy for purposes of this
Agreement shall mean any energy utilized by

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Geneva from PacifiCorp, as measured each hour at the Tie Lines, in excess of 57
MWh for any hour during any Load Curtailment Period.

7.       NON-CIRCUMVENTION

         Geneva agrees not to move production that would have occurred during
the Load Curtailment Period from the Facility to any other location within
PacifiCorp's electric system during the term of this Agreement. In addition,
Geneva agrees that the load curtailment will not increase energy usage at any
other PacifiCorp metered Geneva facility during the Load Curtailment Period. In
the event that circumvention of this Agreement is determined and verified by
PacifiCorp, PacifiCorp shall have the right to terminate this Agreement 72 hours
after Geneva's receipt of written notice of the same, if Geneva has failed to
cure such circumvention.

8.       VERIFICATION

         PacifiCorp will be given access to existing Geneva metering and
instrumentation for the purpose of verification of load curtailment from
PacifiCorp's electrical system. Metered and/or instrumentation data will
indicate electrical demand and associated energy on an hourly basis. PacifiCorp,
in its sole discretion, may install additional metering devices at a location
agreed upon by both Parties to enable the telemetry of information and data
regarding the load curtailment amount. This interval load data will be used to
determine the MW curtailment for all hours of the term and be agreed to by both
parties.

9.       ASSIGNMENT

         Both PacifiCorp and Geneva shall have the right to assign their
respective obligations; provided, an assignment by PacifiCorp is to an entity
who assumes control area operation of PacifiCorp's Eastern control area or an
assignment by Geneva is to an entity who assumes operational control of all of
Geneva's Facility.

10.      BILLING

         PacifiCorp shall credit Geneva's invoice with amounts as provided
herein on a monthly basis. PacifiCorp shall be able to offset any payments it
owes Geneva hereunder with any amounts Geneva owes PacifiCorp pursuant to the
1989 Agreement or any other Geneva/PacifiCorp Agreements. If the credit amount
owed to Geneva for load curtailment exceeds the monthly payment due PacifiCorp
for power purchased for the Facility by Geneva, PacifiCorp shall pay the net
amount due Geneva for load curtailment in each billing month within seventeen
(17) days after the end of such billing month. PacifiCorp shall electronically
wire transfer its monthly payment to an account designated by Geneva. Where
Geneva and PacifiCorp disagree on the compensation

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under this Agreement, the lower of the amounts asserted by the respective
parties shall be so netted or paid, and after resolution of the disagreement,
the balance (if any) shall be netted or paid with the next monthly invoice.

11.      MISCELLANEOUS

         Any amendment to this Agreement must be in writing and signed by both
parties. This Agreement shall be subject to and construed under the laws of the
State of Utah. Any waiver by a Party with respect to a default hereunder, or any
other matter arising in connection herewith, shall not be deemed to be a waiver
with respect to any subsequent default or matter. Neither Party shall be liable
to the other for any indirect, special, incidental or consequential damages in
connection with this Agreement. Each party represents that it has full authority
to enter into this Agreement and that no further approvals of any kind are
necessary. This Agreement is intended to be consistent with the terms of the
Cooperation Agreement, the Supplemental Agreement, and the 1989 Agreement.

12.      NOTICES

         All notices hereunder shall be directed as follows by fax, personal
delivery or U.S. registered or certified mail:

         To Geneva:     Craig Hartman
                        Director of Energy
                        P.O Box 2500, MS40
                        Provo, UT 84603
                        801-227-9198, Fax

         To Utah Power: Aaron Gibson
                        P.O. Box 728
                        51 East Main Street
                        American Fork, UT 84003
                        801-756-1318, Fax

PACIFICORP                                  GENEVA STEEL L.L.C.

By: /s/ Andy MacRitchie                     By: /s/ Ken C. Johnsen

-----------------------------               -----------------------------
Its: Executive Vice President               Its: President

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