Document:

<PAGE>

                                                                   Exhibit 10.55

                   FORBEARANCE AND AMENDMENT NUMBER THREE TO
                DEBTOR-IN-POSSESSION REVOLVING CREDIT AGREEMENT

         FORBEARANCE AND AMENDMENT NUMBER THREE TO DEBTOR-IN-POSSESSION
REVOLVING CREDIT AGREEMENT, dated as of January 11, 2002 (this "AGREEMENT"), by
and among (a) REPUBLIC TECHNOLOGIES INTERNATIONAL, LLC, a debtor and
debtor-in-possession and a Delaware limited liability company (the "BORROWER"),
(b) REPUBLIC TECHNOLOGIES INTERNATIONAL HOLDINGS, LLC, a debtor and
debtor-in-possession and a Delaware limited liability company, RTI CAPITAL
CORP., a debtor and debtor-in-possession and a Delaware corporation, CANADIAN
DRAWN STEEL COMPANY INC., a Canadian corporation, and NIMISHILLEN AND
TUSCARAWAS, LLC, a Delaware limited liability company (collectively, the
"GUARANTORS"), (c) FLEET CAPITAL CORPORATION and the other lending institutions
listed on the signature pages hereof (collectively the "LENDERS"), (d) FLEET
CAPITAL CORPORATION, as Administrative Agent (in such capacity, the
"ADMINISTRATIVE AGENT") for the Lenders, (e) BANK OF AMERICA, N.A., as
syndication agent (the "SYNDICATION AGENT"), and (f) JP MORGAN CHASE BANK
(formerly known as The Chase Manhattan Bank), as documentation agent (the
"DOCUMENTATION AGENT", and together with the Administrative Agent and the
Syndication Agent, the "AGENTS").

         WHEREAS, the Borrower, the Guarantors, the Lenders, the Administrative
Agent, the Syndication Agent and the Documentation Agent are parties to that
certain Debtor-in-Possession Revolving Credit Agreement, dated as of April 3,
2001 (as amended and in effect from time to time, the "CREDIT AGREEMENT");

         WHEREAS, the Borrower has informed the Agents and the Lenders that the
Borrower has failed to comply with Section 10.2 of the Credit Agreement for the
Test Periods ending during the period commencing on September 30, 2001 through
December 31, 2001 and is likely to fail to comply with Section 10.2 of the
Credit Agreement for the Test Periods ending during the period commencing on
January 1, 2002 through May 31, 2002, each such failure to comply, when
occurring to constitute an Event of Default; and

         WHEREAS, the Borrower has informed the Agents and the Lenders that the
Borrower has failed to comply with the Maximum Amount limitation on borrowings
under the Credit Agreement due to the failure to comply with Section 10.4 of the
Credit Agreement for the period from November 30, 2001 through December 31, 2001
and is likely to fail to comply with the Maximum Amount limitation on borrowings
under the Credit Agreement for the period from January 1, 2002 through May 31,
2002, each such failure to comply, when occurring, to constitute an Event of
Default; and

         WHEREAS, the Borrower has informed the Agents and the Lenders that the
Borrower is further likely to fail to comply with the requirements of Sections
10.3 and 10.4 of the Credit Agreement for the period from January 1, 2002
through May 31, 2002, if the Eligible Fixed Asset Cap and the Special Inventory
Advance are reduced in accordance with the terms of the Credit Agreement (the
Events of Default and Identified Events of Default specified in these recitals
being herein referred to as the "SPECIFIED DEFAULTS");
<PAGE>

                                      -2-

         WHEREAS, at the request of the Borrower, the Guarantors, the Agents and
the Lenders have agreed to continue to fund Loans and to continue to forbear
from exercising remedies until May 31, 2002, notwithstanding the occurrence of
the Specified Defaults, and to modify certain other terms and conditions of the
Credit Agreement, all as specifically set forth in this Agreement;

         NOW, THEREFORE, in consideration of the mutual agreements contained in
the Credit Agreement, herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

         SECTION 1. FORBEARANCE. Upon the effectiveness of this Agreement and
until the Forbearance Termination Date (as hereinafter defined) (the
"Forbearance Period"), the Administrative Agent and the Lenders shall forbear
from making demand upon the Notes or pursuing their remedies under the Credit
Agreement, the Security Documents or the other Loan Documents and the Lenders
shall continue to advance Revolving Credit Loans to the Borrower, subject to the
other conditions contained in the Credit Agreement; PROVIDED, that during the
period from January 11, 2002 through January 31, 2002, the sum of the
outstanding Revolving Credit Loans, the Maximum Drawing Amount and the Unpaid
Reimbursement Obligations may exceed the Maximum Amount (but not any other
component of Adjusted Availability) so long as such sum does not exceed
$340,000,000; from February 1, 2002 through March 28, 2002, the sum of the
outstanding Revolving Credit Loans, the Maximum Drawing Amount and the Unpaid
Reimbursement Obligations may exceed the Maximum Amount (but not any other
component of Adjusted Availability) so long as such sum does not exceed
$345,000,000; from March 29, 2002 through April 30, 2002, the sum of the
outstanding Revolving Credit Loans, the Maximum Drawing Amount and the Unpaid
Reimbursement Obligations may exceed the Maximum Amount (but not any other
component of Adjusted Availability) so long as such sum does not exceed
$342,500,000; and thereafter, the sum of the outstanding Revolving Credit Loans,
the Maximum Drawing Amount and the Unpaid Reimbursement Obligations may not
exceed the Maximum Amount (i.e. $337,000,000); PROVIDED, FURTHER, that during
the period from January 11, 2002 through May 31, 2002, the sum of the
outstanding Revolving Credit Loans, the Maximum Drawing Amount and the Unpaid
Reimbursement Obligations attributable to Eligible Fixed Assets may exceed the
Eligible Fixed Asset Cap so long as such amount does not exceed $100,000,000;
and PROVIDED, FURTHER, that, during the period from January 11, 2002 through May
31, 2002, the sum of the outstanding Revolving Credit Loans, the Maximum Drawing
Amount and the Unpaid Reimbursement Obligations attributable to the Special
Inventory Advance may exceed the Special Inventory Advance so long as such
amount does not exceed ten percent (10%) of Eligible Inventory. If at any time
the sum of the outstanding Revolving Credit Loans, the Maximum Drawing Amount
and the Unpaid Reimbursement Obligations exceeds the Maximum Amount or the
Borrowing Base, notwithstanding the provisions hereof, an Event of Default, and
as applicable, an Identified Event of Default shall have occurred. From and
after November 30, 2001 through the end of the Forbearance Period, the Revolving
Credit Loans will bear interest at the rate specified in Section 5.10.2 of the
Credit Agreement; however, the Agents and the Lenders agree that such increase
(2.0%) shall be fully earned and accrue on a daily basis, but shall be payable
on the earliest of (a) May 31, 2002, (b) the date of confirmation of a
Reorganization Plan, (c) the date the Agents and the Lenders, after stay
termination exercise relief from stay or otherwise pursue their remedies against
their Collateral, or (d) the date any of the Cases are converted to Chapter 7.
Nothing contained in this Section 1 shall be construed to imply a willingness on
the part of
<PAGE>

                                      -3-

any Lender to grant any similar or other future forbearance or waiver of any of
the terms and conditions of the Credit Agreement or any other Loan Documents.

         SECTION 2. OTHER DEFAULTS. The forbearance agreement set forth in
Section 1 shall apply only to the Specified Defaults. No forbearance or waiver
with respect to any other Default or Event of Default, whether presently
existing or hereafter arising, is granted hereby. Except to the extent
specifically modified by Section 1 hereof, any obligation of the Lenders to make
Revolving Credit Loans or of the Issuing Bank to issue, extend or renew Letters
of Credit shall at all times be subject to the satisfaction of all of the terms
and conditions of the Credit Agreement, including, without limitation, the
conditions precedent set forth in the Credit Agreement. The Lenders and the
Agents shall, at all times, retain all of the rights and remedies in respect of
any Default or Event of Default (other than the Specified Defaults during the
Forbearance Period) under the Credit Agreement and the other Loan Documents.

         SECTION 3. AMENDMENTS TO THE CREDIT AGREEMENT. The Credit Agreement is
hereby amended in the following respects:

         (a) The definition of "Security Documents" contained in Section 1.1 of
the Credit Agreement is hereby amended by inserting after the words ", the
Mortgage" the words ", the Rail Mortgages".

         (b) Section 1.1 of the Credit Agreement is hereby amended by inserting
the following new definitions in the appropriate alphabetical sequence:

                  "NET SALES. With respect to the Borrower and its Subsidiaries
         for any period, the "Net Sales" of the Borrower and its Subsidiaries
         for such period as reported in the financial statements required to be
         delivered by the Borrower pursuant to Section 8.4(i).

                  "RAIL MORTGAGES. Collectively, the several Open-End Mortgages,
         Security Agreements, Assignments of Rents, income and Proceeds, dated
         as of December 28, 2001 and any date thereafter made by Nimishillen and
         Tuscarawas, LLC ("Nimishillen") in favor of the Administrative Agent,
         in each case as the same may be subsequently amended."

         (c) Section 2.1 of the Credit Agreement is hereby amended by restating
the last sentence thereof in its entirety as follows:

         "Notwithstanding the foregoing, from and after October 1, 2001, the
         aggregate outstanding amount of Revolving Credit Loans PLUS the Maximum
         Drawing Amount and all Unpaid Reimbursement Obligations MINUS the
         aggregate amount of cash held in any Swept Accounts shall not exceed
         the Adjusted Availability Amount.

         (d) Section 5.1.4 of the Credit Agreement is hereby amended by deleting
the words "the remaining portion shall be payable on March 31, 2002." at the end
of the second sentence thereof and replacing them with the words "the remaining
portion (the "March Amendment Fee") shall be payable on March 31, 2002.
Notwithstanding the foregoing, payment of the
<PAGE>

                                      -4-

March Amendment Fee shall be deferred until May 31, 2002, if, after giving
effect to the payment of the March Amendment Fee, the Borrower would not be in
compliance with Sections 10.3 and 10.4 hereof.".

         (e) Section 5.1.5 of the Credit Agreement is hereby amended by
inserting the following new sentence at the end thereof:

         "Notwithstanding the foregoing, payment of the structuring fee shall be
         deferred until May 31, 2002 if, as of March 31, 2002, after giving
         effect to the payment of such structuring fee, the Borrower would not
         be in compliance with Sections 10.3 and 10.4 hereof."

         (f) Section 10.4 of the Credit Agreement is hereby amended by deleting
the table contained therein in its entirety and replacing it with the following:

         PERIOD:                                              AMOUNT:
         -------                                              -------
         January 14, 2002 through January 31, 2002            $6,500,000
         February 1, 2002 through March 28, 2002              $5,000,000
         March 29, 2002 through April 20, 2002                $6,500,000
         Thereafter                                           $8,000,000

         (g) Section 10 of the Credit Agreement is hereby amended by inserting
the following new Section 10.5 at the end thereof:

         "10.5. MINIMUM SALES. The Borrower will not permit Net Sales as at the
end of any period set forth below to be less than the amount set forth opposite
such period:"

         PERIOD:                                              AMOUNT:
         -------                                              -------
         January 1, 2002 through February 28, 2002            $140,000,000
         February 1, 2002 through March 31, 2002              $135,000,000
         March 1, 2002 through April 30, 2002                 $143,000,000
         April 1, 2002 through May 31, 2002                   $148,000,000

         SECTION 4. FORBEARANCE FEE. The Borrower hereby agrees to pay to the
Administrative Agent, for the ratable accounts of the Lenders, the Forbearance
Fee (as defined in the Forbearance and Amendment Number Two, dated as of
November 30, 2001, among the Borrower, the Guarantors, the Agents and the
Lenders) on May 31, 2002. The Forbearance Fee was fully earned on November 30,
2001 and shall be nonrefundable when paid.

         SECTION 5. REPRESENTATIONS AND WARRANTIES. The Borrower and each
Guarantor hereby represents and warrants to the Agents and the Lenders as
follows:

         (a) Each of the representations and warranties of the Borrower or such
Guarantor contained in the Credit Agreement as modified hereby or in any
document or instrument delivered pursuant to or in connection with the Credit
Agreement as modified hereby are true
<PAGE>

                                      -5-

as of the date hereof and except for the Specified Defaults, no Default or Event
of Default has occurred and is continuing; and

         (b) The execution, delivery and performance of this Agreement and the
transactions contemplated hereby (i) are within the corporate or limited
liability company authority of the Borrower or such Guarantor, (ii) have been
duly authorized by all necessary corporate or limited liability company
proceedings, (iii) do not conflict with or result in any material breach or
contravention of any provision of law, statute, rule or regulation to which the
Borrower or such Guarantor is subject or any judgment, order, writ, injunction,
license or permit applicable to the Borrower or such Guarantor so as to
materially adversely affect the assets, business or any activity of the Borrower
or such Guarantor, and (iv) do not conflict with any provision of the corporate
charter or bylaws of the Borrower or such Guarantor or any agreement or other
instrument binding upon it. The execution, delivery and performance of this
Agreement will result in valid and legally binding obligations of the Borrower
or such Guarantor enforceable against the Borrower or such Guarantor in
accordance with the respective terms and provisions hereof.

         SECTION 6. COVENANTS AND AGREEMENTS.

         (a) So long as this Agreement is in effect, the Borrower and each
Guarantor covenants and agrees that it shall comply and continue to comply with
all of the terms, covenants and provisions contained in the Loan Documents,
except to the extent such terms, covenants and provisions are expressly modified
by this Agreement.

         (b) The Borrower and Nimishillen and Tuscarawas, LLC shall have
provided to the Administrative Agent, for the benefit of the Lenders not later
than January 15, 2002, a perfected mortgage and security interest in all real
property and fixtures associated with the railroad operated by Nimishillen and
Tuscarawas, LLC not previously delivered to the Administrative Agent.

         (c) The parties hereto hereby agree, without prejudice to the
characterization of any other Event of Default under the Credit Agreement, that
Identified Events of Default shall constitute "material defaults" under the
modified collective bargaining agreement between the Borrower and the United
Steelworkers of America (the "USWA") covering the five-month period from
December 31, 2001 through May 31, 2002, such agreement to be in substantially
the form previously delivered to the Agents (the "Modified Labor Agreement").

         SECTION 7. CONDITIONS TO EFFECTIVENESS. This Agreement shall become
effective only upon the satisfaction of the following conditions on or prior to
January 10, 2002:

         (a) this Agreement shall have been executed and delivered by the
Borrower, each Guarantor and the Lenders;

         (b) the Borrower shall have paid all reasonable unpaid fees and
expenses of Bingham Dana LLP, Ernst & Young, E & E Corporation and all other
advisors and professionals retained by the Administrative Agent to the extent
that copies of invoices have been presented to the Borrower;
<PAGE>

                                      -6-

         (c) the Borrower and the Guarantors shall have delivered to the
Administrative Agent and the Administrative Agent's Special CounseL all closing
documents reasonably requested by the Administrative Agent, such documents to be
satisfactory in form and substance to the Administrative Agent and the
Administrative Agent's Special Counsel; and

         (d) the Administrative Agent shall have received a signed copy of a
Bankruptcy Court order, satisfactory to the Administrative Agent, approving and
authorizing the Borrower and the Guarantors to enter into this Agreement, and
such order shall be in full force and effect and shall not have been reversed,
modified or amended in any respect.

         SECTION 8. TERMINATION. This Agreement shall terminate on the date (the
"Forbearance Termination Date") which is the earliest to occur of (i) the date
on which any Default or Event of Default (other than a Specified Default)
occurs, (ii) May 31, 2002, (iii) the earlier of the date on which the members of
the USWA vote not to ratify the Modified Labor Agreement or, unless the members
of the USWA have ratified the Modified Labor Agreement on or prior to such date,
January 25, 2002, and (iv) the date on which the Borrower fails to comply with
any of its covenants contained herein, at which time the Lenders and the Agents
shall be relieved of their forbearance obligations set forth herein, and,
subject to obtaining relief from the automatic stay where required under the
Credit Agreement, shall be entitled to pursue all remedies provided upon the
occurrence of Events of Default under the Credit Agreement.

         SECTION 9. RATIFICATION, ETC. The Borrower and each Guarantor hereby
adopts again, ratifies and confirms in all respects, as its own act and deed,
each of the Credit Agreement and the other Loan Documents to which such Person
is a party; the Borrower and each Guarantor hereby adopts again, ratifies and
confirms in all respects, as its own act and deed, the grant of a security
interest under the Security Agreement to which such Person is a party, in the
case of the Borrower, the Mortgage and, in the case of Nimishillen and
Tuscarawas, LLC, the Rail Mortgages, in all of the existing and after-acquired
or arising inventory, including raw materials, work in progress and finished
goods, accounts, including accounts receivable, chattel paper, and insurance
refund claims and all other insurance claims and proceeds to which the
Administrative Agent is entitled pursuant to the provisions of Section 8.7 of
the Credit Agreement; all general intangibles, including, without limitation,
all rights to the payment of money, to the extent relating to the Collateral
described above; all rights to all short term Investments described in Section
9.3 of the Credit Agreement constituting Collateral described above or proceeds
thereof, and to the extent such Investments do not constitute Collateral for the
Notes, together with all income therefrom and increases therein; the Canton
Fixed Assets and all insurance refund claims and all other insurance claims,
tort claims, chattel paper and all general intangibles related to the Canton
Fixed Assets; the Pledged Trademarks (as defined in the Trademark Agreement);
and all real and personal property, and any proceeds and products therefrom,
that was not encumbered as of the date on which the Borrower filed for
Bankruptcy under Chapter 11 of the Bankruptcy Code, together with any and all
Uniform Commercial Code financing statements and other instruments or documents
previously executed in connection therewith to create, evidence, perfect or
preserve the priority of such security interest in favor of the Administrative
Agent for the benefit of the Lenders and the Administrative Agent; the Borrower
and each Guarantor hereby adopts again, ratifies and confirms in all respects,
as its own act and deed, any and all Uniform Commercial Code financing
statements executed by the Administrative Agent in the name of such Person,
pursuant to the power of attorney provisions contained in the Security Agreement
to which
<PAGE>

                                      -7-

such Person is a party, to perfect, preserve the perfection, or insure the
priority of such security interest in favor of the Administrative Agent for the
benefit of the Lenders and the Administrative Agent; each of the Borrower under
the Mortgage and Nimishillen and Tuscarawas, LLC under the Rail Mortgages,
hereby adopts again, ratifies and confirms, as its own act and deed, the
mortgage of certain real estate assets in which such Person has an ownership or
other rights; each pledgor under the Master Pledge Agreement hereby adopts
again, ratifies and confirms in all respects, as its own act and deed, each
pledge granted by such pledgor thereunder; and the Borrower and each Guarantor
hereby adopts again, ratifies and confirms, as its own act and deed, each of the
other instruments or documents delivered in connection with the Credit Agreement
or any of the Loan Documents and purported to be executed by it and acknowledges
that all of the foregoing Loan Documents and other instruments, documents,
filings and recordings shall continue in full force and effect. To the extent
that it has not already done so, the Borrower and each Guarantor hereby waives
all suretyship defenses of whatsoever nature, whether arising out of any Agents'
or any Lender's dealings with the Borrower or any Guarantor, as the case may be,
in respect of the Credit Agreement, any other Loan Document or otherwise. By its
signature below, the Borrower and each Guarantor hereby consents to this
Agreement, and after taking into account this Agreement, acknowledges that this
Agreement shall not alter, release, discharge or otherwise affect any of its
obligations under any Loan Document.

         SECTION 10. RELEASE. In order to induce the Agents and the Lenders to
enter into this Agreement, the Borrower and each Guarantor acknowledges and
agrees that: (a) neither the Borrower nor any Guarantor has any claim or cause
of action against any Agent or any Lender (or any of its respective directors,
officers, employees or agents); (b) neither the Borrower nor any Guarantor has
any offset right, counterclaim or defense of any kind against any of its
respective obligations, indebtedness or liabilities to any Agent or any Lender;
and (c) each of the Agents and the Lenders has heretofore properly performed and
satisfied in a timely manner all of its obligations to the Borrower and each
Guarantor. The Borrower and each Guarantor wishes to eliminate any possibility
that any past conditions, acts, omissions, events, circumstances or matters
would impair or otherwise adversely affect any of the Agents' and the Lenders'
rights, interests, contracts, collateral security or remedies. Therefore, the
Borrower and each Guarantor unconditionally releases, waives and forever
discharges (i) any and all liabilities, obligations, duties, promises or
indebtedness of any kind of any Agent or any Lender to the Borrower or such
Guarantor, except the obligations to be performed by any Agent or any Lender on
or after the date hereof as expressly stated in this Agreement, the Credit
Agreement and the other Loan Documents, and (ii) all claims, offsets, causes of
action, suits or defenses of any kind whatsoever (if any), whether arising at
law or in equity, whether known or unknown, which the Borrower or any Guarantor
might otherwise have against any Agent, any Lender or any of its directors,
officers, employees or agent, in either case (i) or (ii), on account of any past
or presently existing condition, act, omission, event, contract, liability,
obligation, indebtedness, claim, cause of action, defense, circumstance or
matter of any kind.

         SECTION 11. EFFECT OF AGREEMENT. Except as expressly set forth herein,
this Agreement does not constitute an amendment or waiver of any term or
condition of the Credit Agreement or any other Loan Document, and all such terms
and conditions shall remain in full force and effect and are hereby ratified and
confirmed in all respects. Nothing contained in this Agreement shall be
construed to imply a willingness on the part of the Lenders to grant any similar
or other future waivers of any of the terms and conditions of the Credit
Agreement or the other
<PAGE>

                                      -8-

Loan Documents. Nothing contained herein shall in any way prejudice, impair or
otherwise adversely affect any rights or remedies of the Agents and the Lenders
under the Credit Agreement, as amended, or any other Loan Document. This
Agreement shall constitute a Loan Document.

     SECTION 12. REIMBURSEMENT OF EXPENSES. The Borrower acknowledges that all
reasonable out of pocket costs and expenses incurred by the Agents and the
Lenders in connection with (a) the preparation, negotiation, execution, delivery
and monitoring of this Agreement, and (b) the discussions and meetings that
preceded this Agreement (including, without limitation, the fees and
disbursements of any investment banker, consultant or appraiser retained by the
Administrative Agent, allocable costs of in-house counsel, and all legal and
other professional and consultant's fees and disbursements) shall constitute
Obligations and shall be due and payable by the Borrower upon presentation of
invoices therefor.

         SECTION 13. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of Massachusetts.

         SECTION 14. COUNTERPARTS. This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.
<PAGE>

         IN WITNESS WHEREOF, the undersigned have duly executed this Amendment
as a sealed instrument as of the date first above written.

                                       REPUBLIC TECHNOLOGIES
                                       INTERNATIONAL, LLC

                                       By: /s/ Joseph F. Lapinsky
                                           -------------------------------------
                                           Name: Joseph F. Lapinsky
                                           Title: President & CEO

                                       REPUBLIC TECHNOLOGIES
                                       INTERNATIONAL HOLDINGS, LLC

                                       By: /s/ Joseph F. Lapinsky
                                           -------------------------------------
                                           Name: Joseph F. Lapinsky
                                           Title: President & CEO

                                       RTI CAPITAL CORP.

                                       By: /s/ Joseph F. Lapinsky
                                           -------------------------------------
                                           Name: Joseph F. Lapinsky
                                           Title: President & CEO

                                       CANADIAN DRAWN STEEL COMPANY INC.

                                       By: /s/ Joseph F. Lapinsky
                                           -------------------------------------
                                           Name: Joseph F. Lapinsky
                                           Title: President & CEO

                                       NIMISHILLEN & TUSCARAWAS, LLC

                                       By: /s/ Joseph F. Lapinsky
                                           -------------------------------------
                                           Name: Joseph F. Lapinsky
                                           Title: President & CEO
<PAGE>

                                       FLEET CAPITAL CORPORATION,
                                       individually and as Administrative Agent

                                       By: /s/ Joseph W. Johnson, Jr.
                                           -------------------------------------
                                           Joseph W. Johnson, Jr.

                                       BANK OF AMERICA, N.A., individually
                                       and as Syndication Agent

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

                                       JP MORGAN CHASE BANK (formerly known as
                                       The Chase Manhattan Bank), individually
                                       and as Documentation Agent

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

                                       FOOTHILL CAPITAL CORPORATION

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

                                       HELLER FINANCIAL, INC.

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:<PAGE>
                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

         This Agreement is made this 14th day of December, 2001, by and between
Western Reserve Bancorp., Inc., an Ohio corporation (the "Corporation"), and
Edward J. McKeon (the "Employee").

         WHEREAS, the Board of Directors of the Corporation believes that the
future services of the Employee in the capacity of President and Chief Executive
Officer will be of great value to the Corporation;

         WHEREAS, the Corporation and Employee have previously entered into an
Employment Agreement dated as of October 22, 1997 (the "Prior Agreement"), which
has been amended by an Addendum to Employment Agreement dated as of June 28,
1998, and a Stock Option Grant Agreement and Second Addendum to Employment
Agreement dated as of October 22, 1998 (the "Second Addendum"); and

         WHEREAS, the Corporation operates a wholly owned commercial banking
subsidiary known as Western Reserve Bank, which is engaged in the general
business of banking, hereinafter the "Bank"; and

         WHEREAS, the Employee is willing to continue in the employ of the
Corporation and the Bank on a full-time basis for the term of this Agreement.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein set forth, the parties hereto have agreed and do hereby
mutually agree as follows:

1.       TERM -- AGREEMENT TO SERVE

         The Corporation hereby employs for itself, the Bank and or any
         additional subsidiaries (hereinafter sometimes collectively referred to
         as the "Corporation"), the services of Employee for a period commencing
         as of January 1, 2002 and terminating December 31, 2005 (the
         "Termination Date"), subject to the rights of earlier termination
         hereinafter set forth, to perform the duties of President and Chief
         Executive Officer for the Corporation and the Bank. The Employee hereby
         accepts such employment in consideration of the compensation and the
         other terms and conditions herein provided, and agrees to serve the
         Corporation well and faithfully and to devote his best efforts to such
         employment as long as it shall continue hereunder. During the period of
         such employment, the Employee will devote all of his time and attention
         -- reasonable vacations, periods of illness and the like excepted -- to
         the affairs of the Corporation.

2.       BASE SALARY AND FRINGE BENEFITS

         Except as otherwise provided herein, as compensation for these services
         hereunder, the Corporation will pay to Employee, in installments and on
         dates in accordance with its normal payroll, during the period of his
         employment hereunder, a base salary at the aggregate rate of One
         Hundred Thirty Six Thousand Five Hundred Dollars ($136,500)

                                      1
<PAGE>

         per year, subject to the right of the parties, by mutual agreement, to
         adjust such rate upward in respect of any future calendar year or years
         after the date hereof, (hereinafter referred to as "Base Pay"). It is
         the intent of the parties that the base salary set forth herein will be
         reviewed for the year 2002 after the Compensation Committee of the
         Corporation has conducted its annual review of Employee for the year
         ended December 31, 2001.

         In addition the Corporation shall:

         (a)      Pay for and provide to the Employee for his exclusive use a
                  full-sized automobile, the make and model of which shall be
                  mutually agreed to between the Corporation and the Employee,
                  which automobile shall be equipped with a car phone.

         (b)      Provide $250,000 in term life insurance, payable to the
                  beneficiary of Employee's choice.

         (c)      Provide four (4) weeks paid vacation annually.

         (d)      Pay for and provide to Employee reasonable and customary
                  disability insurance that shall provide Employee with a
                  monthly disability insurance payment equal to not less than
                  60% of his monthly Base Pay in the event of disability.

         (e)      Provide comprehensive health and medical insurance coverage at
                  least comparable to that provided to other employees of the
                  Company.

         (f)      Reimburse fees and expenses incurred in connection with
                  business of the Corporation or the Bank including fees for
                  attendance at banking related conventions and similar items
                  approved by the Board of Directors.

3.       BONUS AND OPTIONS

         (a)      Subject to the rules and regulations applicable thereto, the
                  Corporation shall provide for Employee's participation in any
                  incentive employee benefit plans or programs administered by
                  the Corporation or the Bank or under its direction, including
                  any employee bonus plans as may presently exist or are be
                  placed into effect after the date hereof.

         (c)      (b) The Corporation and Employee hereby acknowledge that
                  options to purchase shares of the common stock of the
                  Corporation have been granted to Employee under the terms of
                  the Second Addendum (the "Options") and the Employee agrees to
                  abide by the terms of the Second Addendum and the terms of the
                  Amended and Restated Western Reserve Bancorp, Inc. 1998 Stock
                  Option Plan relative to the Options.

                                       2
<PAGE>

4.       TERMINATION OF EMPLOYMENT

         The employment of the Employee under the terms of this Agreement shall
         cease and terminate as follows:

         (a)      EXPIRATION OF TERM

                  On the Termination Date; or,

         (b)      DEATH

                  On the date of his death; or,

         (c)      TERMINATION BY THE CORPORATION WITH CAUSE

                  For Cause at any time by action of the Board. For purposes
                  hereof, the term "Cause" shall mean removal by order of a
                  regulatory agency having jurisdiction over the Corporation or
                  the Bank, or the Employee's willful and repeated failure to
                  perform his duties under this Employment Agreement, which
                  failure has not been cured within thirty (30) days after the
                  Corporation gives notice thereof to the Employee; it being
                  expressly understood that negligence or bad judgment shall not
                  constitute "Cause" so long as such negligent act or omission
                  shall be without intent of personal profit and is reasonably
                  believed by the Employee to be in or not adverse to the best
                  interests of the Corporation; or,

         (d)      DISABILITY

                  Upon receipt by the Employee of written notice from the
                  Corporation that, in its opinion, based on reliable medical
                  evidence, the Employee is unable by reason of permanent
                  physical or mental disability to continue the proper
                  performance of his duties hereunder. For purposes of this
                  Employment Agreement, the Employee's "permanent disability"
                  shall be deemed to have occurred after one hundred eighty
                  (180) consecutive days, during which one hundred eighty (180)
                  days the Employee, by reason of his physical or mental
                  disability or illness, shall have been unable to discharge his
                  duties under this Employment Agreement. The date of permanent
                  disability shall be such one hundred eightieth (180th) day. In
                  the event either the Corporation or the Employee, after
                  receipt of notice of the Employee's permanent disability from
                  the other, dispute that the Employee's permanent disability
                  shall have occurred, the Employee shall promptly submit to
                  physical examinations by three physicians in the Cleveland,
                  Ohio, area and, unless two of such physicians shall issue
                  their written statement to the effect that in their opinion,
                  based on their diagnosis, the Employee is capable of resuming
                  his employment and devoting his full time and energy to
                  discharging his duties within sixty (60) days after the date
                  of such statement, such permanent disability shall be deemed
                  to have occurred; or,

                                       3
<PAGE>

         (e)      TERMINATION BY THE CORPORATION WITHOUT CAUSE

                  At the election of the Corporation, at any time during the
term of this Agreement without cause.

         (f)      TERMINATION IN CONNECTION WITH A CHANGE IN CONTROL.

              i)  A "Change in Control" shall result if, and shall be deemed to
                  have occurred on the date of, a transaction pursuant to which:

                  (a)   Any person or group (as such terms are used in
                        connection with Sections 13(d) and 14(d) of the Exchange
                        Act) becomes the "beneficial owner" (as defined in Rule
                        13(d)(3) and 13(d)(5) under the Exchange Act), directly
                        or indirectly, of securities of the Corporation
                        representing 25% or more of the combined voting power of
                        the Corporation's then outstanding securities; provided
                        that not withstanding anything in this definition of
                        beneficial owner to the contrary, no person shall be
                        deemed to be the beneficial owner of, or to beneficially
                        own, any security beneficially owned by another person
                        solely by reason of a revocable proxy given in response
                        to a public proxy or consent solicitation or any
                        agreement, arrangement or understanding with such other
                        person relating to the solicitation of revocable proxies
                        made pursuant to, and in accordance with, the applicable
                        provisions of the General Rules and Regulations under
                        the Exchange Act, provided that such other person
                        retains the right at any time to withdraw from, revoke
                        or terminate any such agreement, arrangement or
                        understanding and further provided that such persons
                        would not otherwise be deemed to be a group under
                        Section 13(d) of the Exchange Act or otherwise be deemed
                        to be acting in concert;

                  (b)   A merger, consolidation, sale of assets, reorganization,
                        or proxy contest is consummated and, as a consequence of
                        which, members of the Board in office immediately prior
                        to such transaction or event constitute less than a
                        majority of the Board thereafter;

                  (c)   During any period of 24 consecutive months, individuals
                        who at the beginning of such period constitute the Board
                        (including for this purpose any new director whose
                        election or nomination for election by the Corporation's
                        stockholders was approved by a vote of at least one-half
                        of the directors then still in office who were directors
                        at the beginning of such period) cease for any reason to
                        constitute at least a majority of the Board; or

                  (d)   A merger, consolidation or reorganization is consummated
                        with any other corporation pursuant to which the
                        shareholders of the Corporation immediately prior to the
                        merger, consolidation or reorganization do not
                        immediately thereafter directly or indirectly own more
                        than fifty percent

                                       4
<PAGE>

                        (50%) of the combined voting power of the voting
                        securities entitled to vote in the election of directors
                        of the merged, consolidated or reorganized entity.

                  Notwithstanding the foregoing, no trust department or
                  designated fiduciary or other trustee of such trust department
                  of the Corporation or a subsidiary of the Corporation, or
                  other similar fiduciary capacity of the Corporation with
                  direct voting control of the stock shall be treated as a
                  person or group within the meaning of subsection (i)(a)
                  hereof. Further, no profit-sharing, employee stock ownership,
                  employee stock purchase and savings, employee pension, or
                  other employee benefit plan of the Corporation or any of its
                  subsidiaries, and no trustee of any such plan in its capacity
                  as such trustee, shall be treated as a person or group within
                  the meaning of subsection (i)(a) hereof.

      ii)     If during the term of this Agreement and after the date of a
              Change in Control, Employee is discharged without Cause or
              Employee resigns because he has: (1) been demoted, (2) had his
              compensation reduced, (3) had his principal place of employment
              transferred away from Medina County, Ohio or a county contiguous
              thereto, or (4) had his job title, status or responsibility
              materially reduced, then the Corporation shall make the payments
              to Executive set forth in subsection (iv) of this Section (f).

      iii)    If Employee is discharged by the Corporation other than for Cause
              and there is a Change in Control within twelve (12) months
              following the discharge, then the Company shall make the payments
              to Executive set forth in subsection (iv) of this Section (f).

      iv)     In the event of the termination of Employee's employment as
              described in (ii) or (iii) above, Employee shall be entitled to
              receive: (1) a lump sum cash payment equal to 2.99 times his
              Compensation (as defined below), or (2) upon Employee's election,
              2.99 times his Compensation payable in equal monthly payments, in
              cash, without interest. The lump sum cash payment or the first
              monthly cash payment, as the case may be, shall be paid at the end
              of the first month commencing after the Employee's termination of
              employment in the case of a benefit entitlement under Subsection
              (ii) above, and in the event of the election by Employee to
              receive monthly payments, shall continue each consecutive month
              thereafter until 36 payments have been made. In the event of
              termination of employment as described in (iii) above, the lump
              sum or first monthly payment shall be paid immediately upon the
              Change in Control. If Employee's employment is terminated as
              described in Subsection (ii) above, then in addition to the above
              cash payment(s), the Corporation shall continue at no cost to
              Employee for the term of the Benefit Period as defined below, the
              benefits to which Employee's is entitled under Sections 2(a), (b),
              (d) and (e) at the same levels that had been provided immediately
              prior to his termination of employment. The Benefit Period shall
              commence on the date of termination of the Employee's employment
              and shall end on the last day of the 36th consecutive whole month
              thereafter.

                                       5
<PAGE>

                  In the event Employee dies before collecting all amounts and
                  benefits due under this Section, any payments owing shall be
                  paid to the person or persons as stated in the last
                  designation of beneficiary concerning this Agreement signed by
                  Employee and filed with the Corporation, and if not, then to
                  the personal representative of the Employee.

                  The payments and benefits provided for in this Section 3(f)
                  are in lieu of compensation, benefits or amounts the Employee
                  might otherwise be entitled to under the Corporation's
                  severance policy or otherwise payable by the Corporation by
                  reason of termination of employment.

                  The term "Compensation," as used in this section, shall mean
                  the average of the sum of Employee's base salary plus any cash
                  bonuses for the last three complete calendar years preceding
                  Employee's termination of employment. Compensation shall not
                  include any amount, other than base salary and cash bonuses,
                  included in Employee's taxable compensation for federal income
                  tax purposes and reported to Employee and the Internal Revenue
                  Service ("IRS"), such as the reporting of previously deferred
                  compensation or gain realized upon exercise of any non
                  qualified stock options.

      v)      Any subsequent employment by Employee shall not reduce the
              obligation of the Corporation to make the full payments and
              provide the full benefits specified herein and Employee shall have
              no obligation to seek other employment or otherwise mitigate the
              effect of his discharge from employment.

Upon termination of employment of the Employee pursuant to paragraph 4(a), (b),
(c) or (d) above, the Employee shall be entitled to receive the amount of Base
Pay provided for in paragraph 2 hereof through the date of his termination of
employment. In the event of the termination of employment of Employee pursuant
to paragraph 4(e) above, the Corporation shall pay to the Employee his Base Pay
and other benefits listed in paragraphs 2 and 3 through the Termination Date.

5.       COVENANT NOT TO COMPETE

         (a)      Throughout the term of this Agreement and for a period of two
                  years thereafter, Employee agrees that he will not, except on
                  behalf of the Corporation or with the written consent of the
                  Corporation,

                  (i)     engage in any business activity, directly or
                          indirectly, on his own behalf or as a partner,
                          stockholder (except by ownership of less than 1% of
                          the outstanding stock of a publicly held corporation),
                          director, trustee, principal, agent, employee,
                          consultant or otherwise of any person, firm or
                          corporation, which is competitive with any activity in
                          which the Corporation or any parent, subsidiary or
                          affiliate of the Corporation is engaged at the time,

                                       6
<PAGE>

                  (ii)    allow the use of his name by or in connection with any
                          business which is competitive with an activity in
                          which the Corporation or any parent, subsidiary or
                          affiliate of the Corporation is engaged, or

                  (iii)   offer employment to or employ, for himself or on
                          behalf of any competitor of the Corporation or any
                          parent, subsidiary or affiliate thereof, any person
                          who at any time within the prior three years shall
                          have been employed by the Corporation or any parent,
                          subsidiary or affiliate of the Corporation.

         (b)      The parties acknowledge that this paragraph 5 is fair and
                  reasonable under the circumstances. It is the desire and
                  intent of the parties that the provisions of this paragraph 5
                  shall be enforced to the fullest extent permitted by law.
                  Accordingly, if any particular portion of this paragraph 5
                  shall be adjudicated to be invalid or unenforceable, this
                  paragraph 5 shall be deemed amended to

                  (i)      reform the particular portion to provide for such
                           maximum restrictions as will be valid and
                           enforceable, or if that is not possible,

                  (ii)     delete therefrom the portion thus adjudicated to be
                           invalid or unenforceable, such reformation or
                           deletion to apply only with respect to the operation
                           of this paragraph 5 in the particular jurisdiction in
                           which such adjudication is made.

         (c)      During the term of Employee's employment hereunder, the
                  covenants contained in this paragraph 5 shall apply without
                  regard to geographic location. Upon the termination of
                  Employee's employment, the covenants contained in this
                  paragraph 5 shall be limited to Medina County, Ohio and
                  contiguous counties, except for Cuyahoga County.

6.       INVENTIONS, DISCOVERIES AND IMPROVEMENTS

         The Employee hereby agrees to assign and transfer to the Corporation,
         its successors and assigns, his entire right, title and interest in and
         to any and all inventions, discoveries, trade secrets and improvements
         thereto which he may discover or develop, either solely or jointly with
         others, during his employment hereunder and for a period of one year
         after termination of such employment, which would relate in any way to
         the business of the Corporation or any parent, subsidiary or affiliate
         of the Corporation, together with all rights to letters patent,
         copyrights or trademarks which may be granted with respect thereto.
         Immediately upon making or developing any invention, discovery, trade
         secret or improvement thereto, Employee shall notify the Corporation
         thereof and shall execute and deliver to the Corporation, without
         further compensation, such documents as may be necessary to assign and
         transfer to the Corporation his entire right, title and interest in and
         to such invention, discovery, trade secret or improvement thereto, and
         to prepare or prosecute applications for letters patent with respect to
         the same in the name of the Corporation.

                                       7
<PAGE>

7.       CONFIDENTIAL INFORMATION

         Employee shall not at any time, in any manner, while employed by the
         Corporation or thereafter, either directly or indirectly, except in the
         course of carrying out the Corporation's business or as previously
         authorized in writing on behalf of the Corporation, disclose or
         communicate to any person, firm, or corporation, any information of any
         kind concerning any matters affecting or relating to the Corporation's
         business or any of its data, figures, projections, estimates, customer
         lists, tax records, personnel histories, and accounting procedures of
         the Corporation, without regard to whether any or all of such
         information would otherwise be deemed confidential or material.

8        NON-ASSIGNABILITY

         (a)      Neither party to this Agreement shall have the right to assign
                  this Agreement or any rights or obligations hereunder provided
                  that nothing herein shall prevent the Employee from
                  designating one or more members of his family or a trust or
                  trusts for the members of his family as a beneficiary or
                  beneficiaries entitled to receive payments hereunder as
                  heretofore specified.

         (b)      Except as provided above, no title to any payments which shall
                  become due and payable to the Employee, his personal
                  representative or designated beneficiary under the provisions
                  hereof, shall be vested in him or any of them until the actual
                  payment thereof is made to such person by the Corporation in
                  accordance with the provisions of this Agreement. Neither he
                  nor any of them shall have the right or power to transfer,
                  assign, anticipate or encumber any interest in any such
                  payment, prior to the actual receipt thereof from the
                  Corporation. Neither this Agreement, the Corporation nor any
                  person's rights hereunder shall be liable for the debt,
                  contract or engagement of any of them. None of them shall be
                  permitted to appoint any agent or attorney-in-fact and except
                  as provided herein, to collect or receive his share of such
                  payments or any part thereof unless permission to do so shall
                  be specifically granted by the Corporation in writing. The
                  Corporation, in the absence of such written permission, shall
                  not in any manner recognize such appointment, transfer,
                  assignment or encumbrance.

         (c)      If the Employee or any personal representative or any
                  designated beneficiary attempts to transfer, assign or
                  encumber his interest in such payments, or any part thereof,
                  prior to the payment or distribution thereof to him or her;
                  or, if any transfer or seizure thereof is attempted to be made
                  or brought through the operation of any bankruptcy or
                  insolvency law, the right of the person taking such action or
                  concerned therein or affected thereby, and who would, but for
                  this provision, be entitled to receive such payments, or any
                  part thereof, shall forthwith and ipso facto terminate, all
                  rights bestowed on any such person being hereby, on the
                  happening of any such event, expressly revoked; and the
                  Corporation shall thereafter, in its absolute discretion, at
                  such time or times as it

                                       8
<PAGE>

                  deems proper, cause such part of such person's theretofore
                  existing share of such payments to be paid to such person or
                  persons, including the Employee, of any parent, spouse or
                  child of said person, as the Corporation, in its uncontrolled
                  discretion, shall deem advisable; and the remainder of such
                  payments, if any, may be distributed by the Corporation to the
                  person or person who would have been entitled to receive the
                  same if such person had died immediately prior to said
                  attempted transfer, assignment or encumbrance, or attempted
                  transfer or seizure by operation of law.

9.       BINDING EFFECT

         This Agreement shall be binding upon and inure to the benefit of any
         successor of the Corporation, and any such successor shall be deemed
         substituted for the Corporation under the terms of this Agreement. As
         used in this Agreement, the term "successor" shall include any person,
         firm, corporation, or other business entity which, at any time, whether
         by merger, purchase, or otherwise, acquires all or substantially all of
         the assets or business of the Corporation.

10.      ENTIRE AGREEMENT

         This Agreement contains the entire agreement of the parties hereto
         concerning the subject matter hereof, and cancels any and all other
         oral or written agreements or understandings between the parties with
         respect to the subject matter hereof, provided, however, that the
         provisions of the Second Addendum, other than paragraph 4 thereof,
         shall remain in full force and effect. The Agreement may not be changed
         orally, but only by agreement in writing signed by both parties.

11.      AUTHORIZATION FOR ACTS OF CORPORATION

         Any act, request, approval, consent or opinion of the Corporation
         hereunder shall be authorized, given or expressed by resolution of its
         Board of Directors.

12.      ARBITRATION

         Subject to the Corporation's right to seek injunctive relief under
         paragraph 5 of this Agreement, in the event the parties are unable to
         resolve any issue, misunderstanding, disagreement or dispute after
         making a good faith effort to do so, the parties hereto agree to
         arbitrate any such issue, misunderstanding, disagreement or dispute in
         connection with the terms in effect in this Agreement in accordance
         with the Rules of the American Arbitration Association, before one
         arbitrator mutually agreeable to the parties hereto. If after eight
         weeks they have been unable to agree upon one arbitrator, then either
         party may appoint one arbitrator and require the other party to appoint
         a second arbitrator. Whereupon, the two appointed arbitrators shall
         appoint a third arbitrator mutually agreeable to the two arbitrators.
         The arbitration shall occur in Medina, Ohio, or such other place as
         mutually agreed upon. Each party shall bear their own expenses in

                                       9
<PAGE>

         connection with such arbitration. Judgement on the award rendered by
         the arbitrator(s) may be entered in any court having jurisdiction
         thereof.

13.      GOVERNING LAW

         This Agreement is executed and delivered in the State of Ohio and is
         intended to be interpreted, construed and enforced in accordance with
         the laws of such State.

         IN WITNESS WHEREOF, the Corporation has caused this Agreement to be
executed on its behalf by the Chairman of its Board of Directors, and the
Employee has signed this Agreement, all as of the date and year first above
written.

                            Western Reserve Bancorp, Inc.

                                    /s/ P.M. Jones
                            By:
                                 --------------------------------------------
                                  P.M. Jones, Chairman, Board of Directors

                                    /s/ Edward J. McKeon

                                 --------------------------------------------
                                  Edward J. McKeon

                                       10

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