Document:

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                                                                   Exhibit 4.12

                        FORM OF CREDIT LINE DEED OF TRUST
                         (Hancock County, West Virginia)
                 THIS INSTRUMENT SECURES AN OBLIGATION THAT MAY
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                     INCREASE AND DECREASE FROM TIME TO TIME
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                  THIS CREDIT LINE DEED OF TRUST ("DEED OF TRUST"), made as of
______________, 2002, is made and executed by WEIRTON STEEL CORPORATION, a
Delaware corporation ("GRANTOR"), having its principal offices at 400 Three
Springs Drive, Weirton, West Virginia 26062, MARY CLARE EROS, being a resident
of Jefferson County, West Virginia, as Trustee ("TRUSTEE"), having an address as
217 West Burke Street, Martinsburg, West Virginia 25401, for the benefit of
FLEET CAPITAL CORPORATION ("FLEET"), a Rhode Island corporation with an office
at One North Franklin, Suite 3600, Chicago, Illinois 60606, as agent (Fleet in
its capacity as agent being hereinafter referred to as "AGENT") for Lenders (as
"LENDERS" is defined in the Loan and Security Agreement referred to below).

                                    RECITALS

                  I. Pursuant to the terms of a certain Amended and Restated
Loan and Security Agreement of even date herewith (said Amended and Restated
Loan and Security Agreement, together with all amendments, supplements,
modifications and replacements thereof, being hereinafter referred to as the
"LOAN AGREEMENT") by and between Fleet, as a Lender and as Agent for all
Lenders, Foothill Capital Corporation, as a Lender and as Syndication Agent, The
CIT Group/Business Credit, Inc., as a Lender and as a Documentation Agent, GMAC
Business Credit, LLC, as a Lender and as a Documentation Agent, and such other
Lenders as are or may become party to the Loan Agreement and Grantor, Agent and
Lenders have agreed to make loans to Grantor and extend other financial
accommodations to Grantor in an aggregate principal amount of $200,000,000
(collectively, the "LOANS"). The Loans consist of revolving loans, evidenced by
one or more notes in the aggregate principal amount of $200,000,000 (said notes,
together with all amendments, supplements, modifications and full or partial
replacements thereof, being hereinafter referred to as the "NOTES"), having a
maturity date of March 31, 2004. A schedule of the Notes is attached hereto as
SCHEDULE 1. The terms and provisions of the Notes and the Loan Agreement are
hereby incorporated by reference in this Deed of Trust. The rate or rates of
interest payable under the Loan Agreement may vary from time to time.

                  II. THIS IS A CREDIT LINE DEED OF TRUST FOR THE PURPOSES OF
W.VA. CODE SECTION 38 1-14 AND SECURES A MAXIMUM AMOUNT NOT TO EXCEED
$200,000,000, and this Deed of Trust is also security for the payment of
interest on the Loans and for the payment of taxes, insurance premiums and other
obligations, including interest thereon, undertaken by Agent and/or Lenders
pursuant to the provisions of this Deed of Trust or the Loan Agreement or by
Trustees under this Deed of Trust. This Deed of Trust secures future advances
that are intended to be obligatory which Agent and/or Lenders have
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agreed to make in accordance with the provisions of the Loan Agreement and
therefore the principal amount secured hereby may increase or decrease from time
to time.

                                GRANTING CLAUSES

                  To secure the payment of the indebtedness evidenced by the
Notes and the performance and observance of all covenants and conditions
contained in this Deed of Trust, the Notes, the Loan Agreement, and any other
documents and instruments now or hereafter executed by Grantor to evidence,
secure or guarantee the payment of all or any portion of the indebtedness under
the Notes, the Loan Agreement and any and all renewals, extensions, amendments
and replacements of this Deed of Trust, the Notes, the Loan Agreement and any
such other documents and instruments (the Notes, the Loan Agreement, this Deed
of Trust, and any other documents and instruments now or hereafter executed and
delivered in connection with the Loans, and any and all amendments, renewals,
extensions and replacements hereof and thereof, being sometimes referred to
collectively as the "LOAN INSTRUMENTS") (all indebtedness and liabilities
secured hereby being hereinafter sometimes referred to as "BORROWER'S
LIABILITIES") and in consideration of the indebtedness and trusts hereinafter
set forth and of the sum of $10, Grantor does hereby assign, grant and convey
unto Trustee, in trust with the power of sale, the following described property
and, with respect to that portion of the following described property which is
personal property, unto Trustee and Agent, subject to the terms and conditions
herein:

                  (A) The land located in Hancock County, West Virginia, legally
described in attached EXHIBIT A ("LAND");

                  (B) All the buildings, structures, improvements and fixtures
of every kind or nature now or hereafter situated on the Land and all machinery,
appliances, equipment, furniture and all other personal property of every kind
or nature which constitute fixtures with respect to the Land, together with all
extensions, additions, improvements, substitutions and replacements of the
foregoing ("IMPROVEMENTS");

                  (C) All easements, tenements, rights-of-way, vaults, gores of
land, streets, ways, alleys, passages, sewer rights, water courses, water rights
and powers and appurtenances in any way belonging, relating or appertaining to
any of the Land or Improvements, or which hereafter shall in any way belong,
relate or be appurtenant thereto, whether now owned or hereafter acquired
("APPURTENANCES");

                  (D) (i) All judgments, insurance proceeds, awards of damages
and settlements which may result from any damage to all or any portion of the
Land, Improvements or Appurtenances or any part thereof or to any rights
appurtenant thereto;

                  (ii) All compensation, awards, damages, claims, rights of
action and proceeds of or on account of (a) any damage or taking, pursuant to
the power of eminent domain, of the Land, Improvements or Appurtenances or any
part thereof, (b) damage to all

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or any portion of the Land, Improvements or Appurtenances by reason of the
taking, pursuant to the power of eminent domain, of all or any portion of the
Land, Improvements, Appurtenances or of other property, or (c) the alteration of
the grade of any street or highway on or about the Land, Improvements,
Appurtenances or any part thereof; and, except as otherwise provided herein,
Agent is hereby authorized to collect and receive said awards and proceeds and
to give proper receipts and acquittances therefor and, except as otherwise
provided herein, to apply the same toward the payment of the indebtedness and
other sums secured hereby; and

                  (iii) All proceeds, products, replacements, additions,
substitutions, renewals and accessions of and to the Land, Improvements or
Appurtenances;

                  (E) All rents, issues, profits, income and other benefits now
or hereafter arising from or in respect of the Land, Improvements or
Appurtenances (the "RENTS"); it being intended that this Granting Clause shall
constitute an absolute and present assignment of the Rents, subject, however, to
the revocable license given to Grantor to collect and use the Rents as provided
in this Deed of Trust;

                  (F) Any and all leases, licenses and other occupancy
agreements now or hereafter affecting the Land, Improvements or Appurtenances,
together with all security therefor and guaranties thereof and all monies
payable thereunder, and all books and records owned by Grantor which contain
evidence of payments made under the leases and all security given therefor
(collectively, the "LEASES"), subject, however, to the revocable license given
in this Deed of Trust to Grantor to collect the Rents arising under the Leases
as provided in this Deed of Trust;

                  (G) Any and all after-acquired right, title or interest of
Grantor in and to any of the property described in the preceding Granting
Clauses; and

                  (H) The proceeds from the sale, transfer, pledge or other
disposition of any or all of the property described in the preceding Granting
Clauses;

                  Notwithstanding anything to the contrary contained herein, in
no event shall the Property include, nor shall Grantor be deemed to have
granted, assigned or conveyed any interest hereunder in, any of the following:
(i) the assets described on EXHIBIT B attached hereto, and (ii) the Project
Assets or any property arising from, or as a result of the disposition of, any
of the Project Assets. As used herein, "PROJECT ASSETS" shall mean all of the
pollution control equipment (as equipment is defined in the Uniform Commercial
Code of the State of West Virginia ("UCC")) and fixtures (as defined in the UCC)
located at Grantor's Weirton, West Virginia steel making facility, the purchase
and/or installation of which were financed or refinanced with the proceeds of
the City of Weirton, West Virginia's Pollution Control Revenue Refunding Bonds
(Weirton Steel Corporation Project) Series 1989 issued by the City of Weirton,
West Virginia.

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                  All of the Property described in the Granting Clauses is
sometimes referred to collectively as the "PROPERTY." The Rents and Leases are
pledged on a parity with the Land and Improvements and not secondarily.

                  TO HAVE AND TO HOLD the Property unto Trustee and its
successors in trust forever.

                  IN TRUST NEVERTHELESS, to secure payment of Borrower's
Liabilities.

                                   ARTICLE ONE
                             COVENANTS OF MORTGAGOR

                  Grantor covenants and agrees with Agent as follows:

                  1.1. PERFORMANCE UNDER LOAN AGREEMENT, NOTES, DEED OF TRUST
AND OTHER LOAN INSTRUMENTS. Grantor shall perform, observe and comply with or
cause to be performed, observed and complied with in a complete and timely
manner all provisions hereof, of the Loan Agreement and of the Notes, every
other Loan Instrument and every instrument evidencing or securing Borrower's
Liabilities.

                  1.2. GENERAL COVENANTS AND REPRESENTATIONS. Grantor covenants,
represents and warrants that as of the date hereof and at all times thereafter
during the term hereof: (a) Grantor is seized of an indefeasible estate in fee
simple in that portion of the Property which is real property, and has good and
absolute title to it and the balance of the Property free and clear of all
liens, security interests, charges and encumbrances whatsoever, except those set
forth on Schedule B of the loan policy of title insurance accepted by Agent
insuring the lien of this Deed of Trust permitted by Agent (such liens, security
interests, charges and encumbrances being hereinafter referred to as the
"PERMITTED ENCUMBRANCES"), which Permitted Encumbrances shall include Permitted
Liens (as defined in the Loan Agreement) and the licenses, covenants,
restrictions, easements and rights of way granted from time to time by Grantor
for utilities, pipelines, egress and ingress servicing or benefiting the
Property and/or other property owned, leased or occupied by Grantor, any
affiliate of Grantor, or any successor or assignee of Grantor or any affiliate
of Grantor, under that certain Master Declaration of Easements, Covenants and
Restrictions for Weirton, West Virginia Plant Site dated as of October 25, 2001;
as amended under that certain First Amendment to Master Declaration of
Easements, Covenants and Restrictions for Weirton, West Virginia Plant Site
dated as of October 26, 2001, and as further amended under that certain Second
Amendment to Master Declaration of Easements, Covenants and Restrictions for
Weirton, West Virginia Plant Site dated as of _____________, 2002; and (b)
Grantor will maintain and preserve the lien of this Deed of Trust as a first and
paramount lien on the Property, subject only to the Permitted Encumbrances
(except that this Deed of Trust shall not be subject to any items shown on a
schedule of subordinate items contained in said loan policy), until Borrower's
Liabilities have been paid in full and all obligations of Agent and Lenders
under the Loan Agreement have been terminated.

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                  1.3. COMPLIANCE WITH LAWS AND OTHER RESTRICTIONS. Grantor
covenants and represents that the Land and the Improvements and the use thereof
presently comply with, and, to the extent required by the Loan Agreement, will
continue to comply with, all applicable restrictive covenants, zoning and
subdivision ordinances and building codes, licenses, health and environmental
laws and regulations and all other applicable laws, ordinances, rules and
regulations.

                  1.4. TAXES AND OTHER CHARGES.

                  1.4.1. TAXES AND ASSESSMENTS. Grantor shall pay promptly when
due all taxes, assessments, rates, dues, charges, fees, levies, fines,
impositions, liabilities, obligations, liens and encumbrances of every kind and
nature whatsoever now or hereafter imposed, levied or assessed upon or against
the Property or any part thereof, or upon or against this Deed of Trust or
Borrower's Liabilities; provided, however, that Grantor may in good faith
contest the validity, applicability or amount of any tax, assessment or other
charge, if Grantor complies with any provisions which may be set forth in the
Loan Agreement regarding the contest of taxes.

                  1.4.2. TAXES AFFECTING INTEREST OF AGENT AND LENDERS. If any
state, federal, municipal or other governmental law, order, rule or regulation,
which becomes effective subsequent to the date hereof, in any manner changes or
modifies existing laws governing the taxation of mortgages or deeds of trust or
debts secured by mortgages or deeds of trust, or the manner of collecting taxes,
so as to impose on Agent or Lenders a tax by reason of its ownership of any or
all of the Loan Instruments or measured by the principal amount of Borrower's
Liabilities, requires or has the practical effect of requiring Agent or Lenders
to pay any portion of the real estate taxes levied in respect of the Property or
to pay any tax levied in whole or in part in substitution for real estate taxes
or otherwise affects materially and adversely the rights of Agent or Lenders in
respect of Borrower's Liabilities, this Deed of Trust or the other Loan
Instruments, Borrower's Liabilities and all interest accrued thereon shall, upon
thirty (30) days' notice, become due and payable forthwith at the option of
Agent, whether or not there shall have occurred an Event of Default, provided,
however, that, if Grantor may, without violating or causing a violation of such
law, order, rule or regulation, pay such taxes or other sums as are necessary to
eliminate such adverse effect upon the rights of Agent and Lenders and does pay
such taxes or other sums when due, Agent may not elect to declare due Borrower's
Liabilities by reason of the provisions of this Section 1.4.2.

                  1.5. MECHANIC'S AND OTHER LIENS. Grantor shall not permit or
suffer any mechanic's, laborer's, materialman's, statutory or other lien or
encumbrance (other than Permitted Liens and any lien for taxes and assessments
not yet due) to be created upon or against the Property; provided, however, that
Grantor may in good faith, by appropriate proceedings, contest the validity,
applicability or amount of any asserted lien, if Grantor complies with any
provisions which may be set forth in the Loan Agreement regarding the contest of
liens.

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                  1.6. INSURANCE AND CONDEMNATION.

                  1.6.1. INSURANCE POLICIES. Grantor shall, at its sole expense,
obtain for, deliver to and maintain for the benefit of Agent and list Agent as
loss payee and additional insured, as its interest may appear, until Borrower's
Liabilities are paid in full, such policies of insurance as are required by the
Loan Agreement.

                  1.6.2. ADJUSTMENT OF LOSS; APPLICATION OF PROCEEDS. Except as
otherwise may be provided by the Loan Agreement, Agent is hereby authorized and
empowered, at its option, to adjust or compromise any loss under any insurance
policies covering the Property and to collect and receive the proceeds from any
such policy or policies. Grantor hereby irrevocably appoints Agent as its
attorney-in-fact for the purposes set forth in the preceding sentence. The
entire amount of such proceeds, awards or compensation shall be applied as
provided in the Loan Agreement.

                  1.6.3. CONDEMNATION AWARDS. Agent shall be entitled to all
compensation, awards, damages, claims, rights of action and proceeds of, or on
account of, (i) any damage or taking, pursuant to the power of eminent domain,
of the Property or any part thereof, (ii) damage to the Property by reason of
the taking, pursuant to the power of eminent domain, of other property, or (iii)
the alteration of the grade of any street or highway on or about the Property.
Agent is hereby authorized, at its option, to commence, appear in and prosecute
in its own or Grantor's name any action or proceeding relating to any such
compensation, awards, damages, claims, rights of action and proceeds and to
settle or compromise any claim in connection therewith. Grantor hereby
irrevocably appoints Agent as its attorney-in-fact for the purposes set forth in
the preceding sentence. In the event that Grantor acquires any real estate to
replace all or any portion of the Property which became subject to any such
action or proceeding, Grantor shall execute and deliver to Agent a deed of trust
of such replacement property, which deed of trust shall be in substantially the
same form as this Deed of Trust, and Grantor shall deliver to Agent a survey and
a title insurance policy and such other items in connection with such
replacement property as Agent may require, all in form and substance
satisfactory to Agent.

                  1.6.4. OBLIGATION TO REPAIR. If all or any part of the
Property shall be damaged or destroyed by fire or other casualty or shall be
damaged or taken through the exercise of the power of eminent domain or other
cause described in Section 1.6.3, Grantor shall promptly and with all due
diligence restore and repair the Property whether or not the proceeds, award or
other compensation are made available to Grantor or are sufficient to pay the
cost of such restoration or repair.

                  1.7. AGENT MAY PAY; DEFAULT RATE. Upon Grantor's failure to
pay any amount required to be paid by Grantor under any provision of this Deed
of Trust, Agent may pay the same. Grantor shall pay to Agent on demand the
amount so paid by Agent together with interest at a rate equal to the highest
rate payable under the Loan Agreement after the occurrence of an "Event of
Default" as such term is defined in the Loan Agreement (the

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"DEFAULT RATE") and the amount so paid by Agent, together with interest, shall
be added to Borrower's Liabilities.

                  1.8. CARE OF THE PROPERTY. Grantor shall preserve and maintain
the Property in good operating condition. Grantor shall not, without the prior
written consent of Agent, permit, commit or suffer any waste, impairment or
deterioration of the Property or of any part thereof. Except to the extent that
capital expenditures are permitted by the Loan Agreement, no new improvements
shall be constructed on the Property and no part of the Property shall be
altered in any material manner without the prior written consent of Agent.

                  1.9. TRANSFER OR ENCUMBRANCE OF THE PROPERTY. Except as
permitted by the Loan Agreement, Grantor shall not permit or suffer to occur any
sale, assignment, conveyance, transfer, mortgage, lease or encumbrance of the
Property, any part thereof, or any interest therein, without the prior written
consent of Agent having been obtained.

                  1.10. FURTHER ASSURANCES. At any time and from time to time,
upon Agent's request, Grantor shall make, execute and deliver, or cause to be
made, executed and delivered, to Agent, and where appropriate shall cause to be
recorded, registered or filed, and from time to time thereafter to be
re-recorded, re-registered and refiled at such time and in such offices and
places as shall be deemed desirable by Agent, any and all such further
mortgages, security agreements, financing statements, instruments of further
assurance, certificates and other documents as Agent may consider reasonably
necessary in order to effectuate or perfect, or to continue and preserve the
obligations under, this Deed of Trust.

                  1.11. ASSIGNMENT OF RENTS. The assignment of rents, income and
other benefits contained in Section (E) of the Granting Clauses of this Deed of
Trust shall be fully operative without any further action on the part of either
party, and, specifically, Agent shall be entitled, at its option, upon the
occurrence of an Event of Default hereunder, to all rents, income and other
benefits from the Property, whether or not Agent takes possession of such
property. Such assignment and grant shall continue in effect until Borrower's
Liabilities are paid in full and all obligations of Agent and Lenders under the
Loan Agreement have been terminated, the execution of this Deed of Trust
constituting and evidencing the irrevocable consent of Grantor to the entry upon
and taking possession of the Property by Agent pursuant to such grant, whether
or not foreclosure proceedings have been instituted. Notwithstanding the
foregoing, so long as no Event of Default has occurred, Grantor shall have a
revocable license to continue to collect the rents, income and other benefits
from the Property as they become due and payable but not more than thirty (30)
days prior to the due date thereof.

                  1.12. AFTER-ACQUIRED PROPERTY. To the extent permitted by, and
subject to, applicable law, the lien of this Deed of Trust shall automatically
attach, without further act, to all property hereafter acquired by Grantor
located in or on, or attached to, or used or intended to be used in connection
with, or with the operation of, the Property or any part thereof.

                  1.13. LEASES AFFECTING PROPERTY. Grantor shall comply with and
perform in a complete and timely manner all of its obligations as landlord under
all leases affecting the

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Property or any part thereof. The assignment contained in Sections (E) and (F)
of the Granting Clauses shall not be deemed to impose upon Agent any of the
obligations or duties of the landlord or Grantor provided in any lease.

                  1.14. MANAGEMENT OF PROPERTY. Grantor shall cause the Property
to be managed at all times in accordance with sound business practice.

                  1.15. EXECUTION OF LEASES. Grantor shall not permit any leases
to be made of the Property, or to be modified, terminated, extended or renewed,
without the prior written consent of Agent.

                  1.16. EXPENSES. In the event of foreclosure hereof, Agent
shall be entitled to add to Borrower's Liabilities its reasonable expenses
related thereto.

                  1.17. ENVIRONMENTAL CONDITIONS.

                  (a) Except as disclosed by letter dated ___________, 2002 to
         the Agent from Grantor, Grantor covenants, warrants and represents that
         there are no, nor will there, for so long as any of Borrower's
         Liabilities remain outstanding, be, any Hazardous Materials (as
         hereinafter defined) generated, released, stored, buried or deposited
         over, beneath, in or upon the Property except as such Hazardous
         Materials may be required to be used, stored or transported in
         connection with the permitted uses of the Property and then only to the
         extent permitted by law after obtaining all necessary permits and
         licenses therefor or, if not permitted by law, then to the extent
         non-compliance with applicable law is permitted by the Loan Agreement.
         For purposes of this Deed of Trust, "HAZARDOUS MATERIALS" shall mean
         and include any asbestos containing materials, polychlorinated
         biphenyls ("PCBS"), petroleum products, lead based paint, radioactive
         materials and any other hazardous, special or toxic materials, wastes
         and substances which are defined, determined or identified as such in
         any federal, state or local laws, rules, regulations, ordinances,
         orders, codes, statutes or guidelines in each case as amended (whether
         now existing or hereafter enacted or promulgated) including, without
         limitation, the Recourse Conservation and Recovery Act (42 U.S.C. Sec.
         6901 et seq.), Toxic Substances Control Act (15 U.S.C. Sec. 2601),
         Clean Air Act (42 U.S.C. Sec. 7401 et seq.), Comprehensive
         Environmental Response, Compensation and Liability Act (42 U.S.C. Sec.
         9601 et seq.) and any law, statute, rule or ordinance of the State of
         West Virginia and any other governmental entity with jurisdiction over
         the Mortgaged Property, or any part thereof, concerning such Hazardous
         Materials or any judicial or administrative interpretation of such
         laws, rules, regulations. Such laws, statutes, rules, ordinances and
         regulations are hereinafter collectively referred to as the "HAZARDOUS
         MATERIALS LAWS."

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                  (b) Grantor shall, and Grantor shall cause all employees,
         agents, contractors and subcontractors of Grantor and any other persons
         from time to time present on or occupying the Property to, keep and
         maintain the Property in compliance with, and not cause or knowingly
         permit the Property to be in violation of, any applicable Hazardous
         Materials Laws. Neither Grantor nor any employees, agents, contractors
         or subcontractors of Grantor or any other persons occupying or present
         on the Property shall use, generate, manufacture, store or dispose of
         on, under or about the Property or transport to or from the Property
         any Hazardous Materials, except as such Hazardous Materials may be
         required to be used, stored or transported in connection with the
         permitted uses of the Property and then only to the extent permitted by
         law after obtaining all necessary permits and licenses therefor.

                  (c) Grantor shall immediately advise Agent in writing of: (i)
         any notices received by Grantor (whether such notices are from the
         Environmental Protection Agency, or any other federal, state or local
         governmental agency or regional office thereof) of the violation or
         potential violation occurring on or about the Property of any
         applicable Hazardous Materials Laws; (ii) any and all enforcement,
         cleanup, removal or other governmental or regulatory actions
         instituted, completed or threatened pursuant to any Hazardous Materials
         Laws; and (iii) all claims made or threatened by any third party
         against Grantor or the Property relating to damage, contribution, cost
         recovery compensation, loss or injury resulting from any Hazardous
         Materials (the matters set forth in clauses (i), (ii) and (iii) above
         are hereinafter referred to as "HAZARDOUS MATERIALS CLAIMS"). Agent
         shall have the right but not the obligation to join and participate in,
         as a party if it so elects, any legal proceedings or actions initiated
         in connection with any Hazardous Materials Claims and Grantor shall pay
         to Agent, upon demand, all attorneys' and consultants' fees incurred by
         Agent in connection therewith.

                  (d) Grantor shall be solely responsible for, and shall
         indemnify and hold harmless Agent and Lenders, and the directors,
         officers, employees, agents, successors and assigns of each of them,
         from and against any loss, damage, cost, expense or liability directly
         or indirectly arising out of or attributable to the use, generation,
         storage, release, threatened release, discharge, disposal or presence
         (whether prior to or during the term of the Loan or otherwise and
         regardless of by whom caused, whether by Grantor or any predecessor in
         title or any owner of land adjacent to the Property or any other third
         party, or any employee, agent, contractor or subcontractor of Grantor
         or any predecessor in title or any such adjacent land owner or any
         third person) of Hazardous Materials on, under or about the Property;
         including, without limitation: (i) claims of third parties (including
         governmental agencies) for damages, penalties, losses, costs, fees,
         expenses, damages, injunctive or other relief; (ii) response costs,
         clean-up costs, costs

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         and expenses of removal and restoration, including fees of attorneys
         and experts, and costs of determining the existence of Hazardous
         Materials and reporting same to any governmental agency; and (iii) any
         and all expenses or obligations, including attorneys' fees, incurred
         at, before or after any trial or appeal therefrom whether or not
         taxable as costs, including, without limitation, attorneys' fees,
         witness fees, deposition costs, copying and telephone charges and other
         expenses. The obligations of Grantor under this subsection shall
         survive any of the foreclosure of this Deed of Trust, the repayment of
         Borrower's Liabilities, or other satisfaction of the indebtedness
         secured by this Deed of Trust, whether by deed in lieu of foreclosure
         or otherwise.

                  (e) Any loss, damage, cost, expense or liability incurred by
         Agent or Lenders as a result of a breach or misrepresentation by
         Grantor or for which Grantor is responsible or for which Grantor has
         indemnified Agent and Lenders shall be paid to Agent or Lenders, as the
         case may be, on demand, and, failing prompt reimbursement, such amounts
         shall, together with interest thereon at the Default Rate from the date
         incurred by Agent or Lenders, as the case may be, until paid by
         Grantor, be added to Borrower's Liabilities, be immediately due and
         payable and be secured by the lien of this Deed of Trust and the other
         Loan Instruments.

                                   ARTICLE TWO
                                    DEFAULTS

                  2.1. EVENT OF DEFAULT. The term "EVENT OF DEFAULT," wherever
used in this Deed of Trust, shall mean any one or more of the following events:

                  (a) The failure by Grantor to keep, perform, or observe any
         covenant, condition or agreement on the part of Grantor in this Deed of
         Trust and such failure is not cured to Agent's satisfaction within
         fifteen (15) days after the sooner to occur of Grantor's receipt of
         notice of such breach from Agent or the date on which such failure or
         neglect first becomes known to any officer of Grantor, except for any
         occurrence described in the Loan Agreement for which a different grace
         or cure period is specified or which constitutes an immediate "Event of
         Default" under and as defined in the Loan Agreement, in which event the
         Loan Agreement will control.

                  (b) The occurrence of an "Event of Default" under and as
         defined in the Loan Agreement or any of the other Loan Instruments.

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                                  ARTICLE THREE
                                    REMEDIES

                  3.1. ACCELERATION OF MATURITY; COLLECTION. If an Event of
Default shall have occurred, Agent may declare all Borrower's Liabilities to be
immediately due and payable, and thereupon collect Borrower's Liabilities by
proper action, foreclosure of this Deed of Trust, or any other equitable
proceeding.

                  3.2. POSSESSION AND OPERATION OF PROPERTY. If an Event of
Default shall have occurred, in addition to all other rights herein conferred,
Agent may have a receiver appointed or cause Trustee to enter on the Property,
either in person or by agent, and take possession and charge of the Property,
collect the Rents and have a receiver appointed for such purposes.

                  3.3. FORECLOSURE. After Borrower's Liabilities have been
accelerated, Trustee, upon the written request of Agent, shall foreclose upon
and sell the Property for cash in hand on day of sale to satisfy the Borrower's
Liabilities in accordance with applicable provisions of West Virginia law. From
the proceeds of such sale, Trustee shall pay, first the costs and expenses of
executing this trust including the reasonable legal fees and other reasonable
expenses of Agent, Lenders and Trustee, but Trustee shall be entitled to no
commission; second, to Agent and/or Lenders all sums paid for taxes, insurance,
repairs and all other costs and expenses incurred or paid under the provisions
of this Deed of Trust, together with interest thereon at the Default Rate, from
the date of payment; third, to Agent and/or Lenders the full amount due and
unpaid on Borrower's Liabilities; and fourth, the balance, if any, to Grantor,
its successors and assigns, upon delivery of and surrender to the purchasers of
possession of the Property, less the expense, if any, of obtaining such
possession. If foreclosure proceedings are instituted but not completed, Trustee
shall be reimbursed for all reasonable costs and expenses incurred by it in
commencing such proceedings. Any sale may be adjourned from time to time by oral
proclamation by Trustee. Agent and Trustee shall also have all rights, remedies
and powers of a secured party under the Uniform Commercial Code of West
Virginia, as to personal property, fixtures and other applicable portions of the
Property.

                  3.4. FORECLOSURE NOTICE. A copy of any notice of foreclosure
sale and any other notices hereunder shall be served on Grantor by certified
mail, return receipt requested, at the address for notice provided in Section
4.2 herein or at such other address as may be given to Agent in writing by
Grantor subsequent to the execution and delivery of this Deed of Trust. Any
notice of a subordinate lien, any notice of other liens made pursuant to W. Va.
Code ss. 38-1-14 or other notice may be served on Agent at its address on the
first page of this Deed of Trust.

                  3.5. ACTION OF TRUSTEE. Trustee may act in the execution of
this trust, by agent or attorney. It is not necessary for Trustee to be
personally present at any foreclosure sale.

                                      -11-
<PAGE>

                  3.6. SUBSTITUTION OF TRUSTEE. Agent may from time to time, for
any reason or for no reason, substitute another Trustee, corporation or person,
in place of the Trustee herein named. Upon each such appointment, the
substituted Trustee shall be vested with all the rights, titles, interests,
powers, duties and trusts conferred upon the Trustee herein named. Each
appointment and substitution shall be evidenced by an instrument in writing,
executed and acknowledged by Agent, which when recorded in the office of the
Clerk of the County Commission of Hancock County, shall be conclusive proof of
the proper substitution and appointment and notice to all parties in interest.

                  3.7. PERSONAL PROPERTY AND FIXTURES. If an Event of Default
shall have occurred and be continuing, Agent shall have all rights and remedies
of a secured party under the Uniform Commercial Code of West Virginia, including
the right to sell it at public or private sale or otherwise dispose of, lease or
use it, without regard to preservation of the Property or its value and without
the necessity of a court order.

                  3.8. REMEDIES CUMULATIVE. No right, power or remedy conferred
upon or reserved to Agent or Lenders by the Notes, the Loan Agreement, this Deed
of Trust or any other Loan Instrument or any instrument evidencing or securing
Borrower's Liabilities is exclusive of any other right, power or remedy, but
each and every such right, power and remedy shall be cumulative and concurrent
and shall be in addition to any other right, power and remedy given hereunder or
under the Notes, the Loan Agreement or any other Loan Instrument or any
instrument evidencing or securing Borrower's Liabilities, or now or hereafter
existing at law, in equity or by statute.

                                  ARTICLE FOUR
                            MISCELLANEOUS PROVISIONS

                  4.1. HEIRS, SUCCESSORS AND ASSIGNS INCLUDED IN PARTIES.
Whenever Grantor, Agent or Lenders are named or referred to herein, heirs and
successors and assigns of such person or entity shall be included, and all
covenants and agreements contained in this Deed of Trust shall bind the
successors and assigns of Grantor, including any subsequent owner of all or any
part of the Property and inure to the benefit of the successors and assigns of
Agent and Lenders.

                  4.2. NOTICES. Except as specifically set forth herein, all
notices, requests, reports, demands or other instruments required or
contemplated to be given or furnished under this Deed of Trust to Grantor or
Agent shall be directed to Grantor or Agent, as the case may be, in the manner
and at the addresses for notice set forth in the Loan Agreement.

                  4.3. HEADINGS. The headings of the articles, sections,
paragraphs and subdivisions of this Deed of Trust are for convenience only, are
not to be considered a part hereof, and shall not limit, expand or otherwise
affect any of the terms hereof.

                                      -12-
<PAGE>

                  4.4. INVALID PROVISIONS. In the event that any of the
covenants, agreements, terms or provisions contained in this Deed of Trust shall
be invalid, illegal or unenforceable in any respect, the validity of the
remaining covenants, agreements, terms or provisions contained herein (or the
application of the covenant, agreement, term held to be invalid, illegal or
unenforceable, to persons or circumstances other than those in respect of which
it is invalid, illegal or unenforceable) shall be in no way affected, prejudiced
or disturbed thereby.

                  4.5. CHANGES. Neither this Deed of Trust nor any term hereof
may be released, changed, waived, discharged or terminated orally, or by any
action or inaction, but only by an instrument in writing signed by the party
against which enforcement of the release, change, waiver, discharge or
termination is sought.

                  4.6. GOVERNING LAW. Except with respect to the creation,
perfection, priority and enforcement of the lien and security interest created
hereunder, all of which shall be construed, interpreted, enforced and governed
by the laws of the State of West Virginia, the validity and interpretation of
this Deed of Trust shall be governed by and in accordance with the internal laws
of the State of Illinois, without regard to conflicts of law principles.

                  4.7. LIMITATION OF INTEREST. The provisions of the Loan
Agreement regarding the payment of lawful interest are hereby incorporated
herein by reference.

                  4.8. FUTURE ADVANCES. THIS IS A CREDIT LINE DEED OF TRUST FOR
THE PURPOSES OF W.VA. CODE Sec. 38-1-14 AND SECURES AN AGGREGATE MAXIMUM
PRINCIPAL AMOUNT NOT TO EXCEED $200,000,000, and this Deed of Trust is also
security for the payment of interest on the Loans and for the payment of taxes,
insurance premiums and other obligations, including interest thereon, undertaken
by Agent and/or Lenders pursuant to the provisions of this Deed of Trust or the
Loan Agreement or by Trustees under this Deed of Trust. This Deed of Trust
secures future advances that are intended to be obligatory which Agent and/or
Lenders have agreed to make in accordance with the provisions of the Loan
Agreement and therefore the principal amount secured hereby may increase or
decrease from time to time.

                  4.9. INTENTIONALLY DELETED.

                  4.10. LAST DOLLAR. The lien of this Deed of Trust shall remain
in effect until the last dollar of Borrower's Liabilities is paid in full and
all obligations of Agent and Lenders under the Loan Agreement have been
terminated.

                  4.11. RELEASE. Upon full payment and satisfaction of
Borrower's Liabilities and the termination of all obligations of Agent and
Lenders under the Loan Agreement, Agent shall issue to Grantor an appropriate
release or satisfaction in recordable form.

                  4.12. TIME OF THE ESSENCE. Time is of the essence with respect
to this Deed of Trust and all the provisions hereof.

                                      -13-
<PAGE>

                  4.13. LOAN AGREEMENT. The Loans are governed by terms and
provisions set forth in the Loan Agreement and in the event of any conflict
between the terms of this Deed of Trust and the terms of the Loan Agreement, the
terms of the Loan Agreement shall control.

                  4.14. REPLACEMENT OF NOTES. Any one or more of the financial
institutions which are or become a party to the Loan Agreement as Lenders may
from time to time be replaced and, accordingly, one or more of the Notes may
from time to time be replaced, provided that the terms of the Notes following
such replacement, including the principal amount evidenced thereby, shall remain
the same. As the indebtedness secured by this Deed of Trust shall remain the
same, such replacement of the Notes shall not be construed as a novation and
shall not affect, diminish or abrogate Grantor's liability under this Deed of
Trust or the priority of this Deed of Trust.

                                      -14-
<PAGE>

                  IN WITNESS WHEREOF, Grantor has caused this instrument to be
executed by its duly authorized officer as of the day and year first above
written.

                              WEIRTON STEEL CORPORATION,
                              a Delaware corporation

                              By_______________________________________________
                              Name:  Mark E. Kaplan
                              Title: Vice President and Chief Financial Officer

                                      -15-
<PAGE>

                                 ACKNOWLEDGMENT

STATE OF WEST VIRGINIA,
COUNTY OF HANCOCK, TO-WIT:

                  The foregoing instrument was acknowledged before me this
_______ day of _________________, 2002, by Mark E. Kaplan, Vice President and
Chief Financial Officer of WEIRTON STEEL CORPORATION, a Delaware corporation, on
behalf of said corporation.

My Commission Expires:  ________________

                                                ________________________________
                                                          Notary Public

[NOTARIAL SEAL]

                         THIS INSTRUMENT WAS PREPARED BY
                         AND AFTER RECORDING RETURN TO:

                              Carole K. Towne, Esq.
                          Goldberg, Kohn, Bell, Black,
                            Rosenbloom & Moritz, Ltd.
                              55 East Monroe Street
                                   Suite 3700
                             Chicago, Illinois 60603
                                 (312) 201-4000

                                      -16-<PAGE>
                                                                  EXHIBIT 4.13

                                     FORM OF

                             INTERCREDITOR AGREEMENT

         THIS INTERCREDITOR AGREEMENT (the "Agreement"), dated as of the ____
day of __________, 2002, is made by J.P. MORGAN TRUST COMPANY, NATIONAL
ASSOCIATION, as Collateral Agent for the holders of the Notes and the Bonds
(each as defined below), with an office at ________________________________,
Pittsburgh, Pennsylvania _____, J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION,
as indenture trustee for the holders of the Notes, with an office at
________________________________, Pittsburgh, Pennsylvania _____, J.P. MORGAN
TRUST COMPANY, NATIONAL ASSOCIATION, as indenture trustee for the holders of the
Bonds, with an office at ________________________________, Pittsburgh,
Pennsylvania _____, and FLEET CAPITAL CORPORATION, as Agent for the holders of
Agent's Debt (as defined below), with an office at One South Wacker Drive, Suite
1400, Chicago, Illinois 60606.

         1. Background.

         (a) Weirton Steel Corporation, a Delaware corporation ("Company"), has
granted to the Notes Trustee and the Bonds Issuer (as each is defined below,
respectively) liens upon, and security interests in, the Collateral (as defined
below) to secure the Notes Debt and the Bonds Debt (as each is defined below,
respectively). The rights of the Bonds Issuer in and to the Collateral have been
assigned to the Bonds Trustee pursuant to the terms of (i) a certain Assignment
Agreement (as defined below) and (ii) the Bonds Indenture (as defined below).

         (b) Pursuant to the terms of the Junior Intercreditor Agreement (as
defined below), each of the Notes Trustee and the Bonds Trustee has appointed
Collateral Agent as its agent, among other things, to execute this Agreement and
act for it in certain respects in respect of the Collateral. Pursuant to the
Junior Intercreditor Agreement, each of the Notes Trustee and the Bonds Trustee
has also reserved to itself certain rights with respect to the Collateral.

         (c) Company has granted to Agent liens upon, and security interests in,
the Collateral to secure Agent's Debt.

         (d) Agent and each Lien Holder (as defined below) desire to agree
between themselves on their relative rights, priorities and interests in the
Collateral and certain other matters as set forth herein.

<PAGE>

         Therefore, in consideration of the foregoing and the mutual covenants
set forth below, the parties hereby agree as follows.

         2. Definitions. For purposes of this Agreement:

         (a) "Agent" means Fleet Capital Corporation, in its capacity as Agent
for the holders of Agent's Debt, and each successor agent with respect thereto.

         (b) "Agent's Debt" means all obligations, liabilities and indebtedness
from time to time owing by Company to Agent and the lenders under the Agent's
Loan Agreement, including without limitation principal and interest (including
without limitation any interest accruing after the commencement of insolvency
proceedings with respect to Company, whether or not such interest is allowed as
a claim in such proceedings), fees and premiums from time to time owing by
Company to Agent and the lenders under the Agent's Loan Agreement (including
reasonable attorneys' fees), and all other amounts owing under Agent's
Documents; provided, that (i) at all times that any Notes Debt is outstanding,
the maximum outstanding principal amount of Agent's Debt that is secured by the
Collateral shall not on the date incurred exceed the amount permitted to be
incurred and secured by the Collateral pursuant to the Notes Indenture, and (ii)
such maximum outstanding principal amount permitted hereunder shall be reduced
from time to time as set forth in Section 3(d) hereof.

         (c) "Agent's Documents" means any and all agreements, instruments and
documents, together with any amendments, renewals, extensions or supplements
thereto or replacements thereof, now or hereafter evidencing or securing the
financing arrangements provided for under the Agent's Loan Agreement, including
without limitation the Agent's Loan Agreement.

         (d) "Agent's Loan Agreement" means that certain Amended and Restated
Loan and Security Agreement dated as of ___________, 2002, as the same may be
amended, supplemented or otherwise modified from time to time, among Company,
Agent, the other agents party thereto and the lenders from time to time party
thereto.

         (e) "Approved Financing Transaction" means a financing secured by the
Tandem Mill Collateral (i) that is permitted to be consummated pursuant to
Sections 3.9 and 3.13 of the Notes Indenture or, at any time that all Notes Debt
has been paid in full, but any Bonds Debt is outstanding, that is permitted to
be consummated pursuant to Sections 5.5 and 5.6 of the Bonds Loan Agreement,
(ii) the maximum principal amount of which financing that is secured by the
Tandem Mill Collateral does not exceed $90,000,000, (iii) that is consummated in
order to provide financing for a Permitted Acquisition, and (iv) to which Agent
has consented to the extent such consent is required under the terms of the
Agent's Loan Agreement.

         (f) "Approved Sale" means an Asset Disposition relating to all or any
portion of the Collateral with respect to which either (i) if such Asset
Disposition occurs at a time when any of the Notes Debt is outstanding, (A)
Company or one of its Subsidiaries (as

                                     - 2 -
<PAGE>

the case may be) receives consideration at the time of such Asset Disposition at
least equal to the fair market value thereof, as determined in good faith by
Company's board of directors and evidenced by a resolution of such board of
directors, (B) not less than 75% of the consideration received by Company (or
such Subsidiary, as the case may be) is in the form of cash or Cash Equivalents
(as defined in the Notes Indenture), (C) Company (or such Subsidiary, as the
case may be) has complied with Article 10 of the Notes Indenture with respect
thereto and (D) Agent has consented, to the extent such consent is required
under the terms of the Agent's Loan Agreement or (ii) if such Asset Disposition
occurs at a time that the Notes Debt has been paid in full, but any Bonds Debt
is outstanding, (A) Company or one of its Subsidiaries (as the case may be)
receives consideration at the time of such Asset Disposition at least equal to
the fair market value thereof, as determined in good faith by Company's board of
directors and evidenced by a resolution of such board of directors, (B) not less
than 75% of the consideration received by Company (or such Subsidiary, as the
case may be) is in the form of cash or Cash Equivalents (as defined in the Bonds
Loan Agreement), (C) Company (or such Subsidiary, as the case may be) has
complied with Section 9.3 of the Bonds Loan Agreement with respect thereto and
(D) Agent has consented, to the extent such consent is required under the terms
of the Agent's Loan Agreement.

         (g) "Approved Sale and Leaseback" means a sale and leaseback
transaction with respect to all or a portion of the Collateral, with respect to
which either (i) if such sale and leaseback transaction occurs at a time when
any of the Notes Debt is outstanding, (A) the net proceeds of such sale or
transfer are at least equal to the fair market value (as determined by Company's
board of directors) of the subject portion of the Collateral, (B) Company would
be entitled pursuant to the terms of Section 3.9 and 3.13 of the Notes Indenture
to issue, assume or guarantee indebtedness secured by a mortgage on such portion
of the Collateral, (C) Company has complied with Article 10 of the Notes
Indenture and (D) Agent has consented, to the extent such consent is required
under the terms of the Agent's Loan Agreement or (ii) if such sale and leaseback
transaction occurs at a time when the Notes Debt has been paid in full, but any
Bonds Debt is outstanding, (A) the net proceeds of such sale or transfer are at
least equal to the fair market value (as determined by Company's board of
directors) of the subject portion of the Collateral, (B) Company would be
permitted to consummate such transaction pursuant to Sections 5.5 and 5.6 of the
Bonds Loan Agreement and (C) Agent has consented, to the extent such consent is
required under the terms of the Agent's Loan Agreement.

         (h) "Asset Disposition" has the meaning provided to such term in the
Notes Indenture, whether or not any of the Notes Debt is outstanding or the
Notes Indenture remains effective.

         (i) "Assignment Agreement" means the certain Assignment and Transfer of
Deeds of Trust and Security Agreement dated as of __________, 2002 between the
Bonds Issuer and the Bonds Trustee.

         (j) "Bonds" means those certain Secured Pollution Control Revenue
Refunding Bonds (Weirton Steel Corporation Project) Series 2002 in the original
aggregate

                                     - 3 -
<PAGE>

principal amount of $__________ issued by the Bonds Issuer pursuant to the
Bonds Indenture.

         (k) "Bonds Debt" means all obligations, liabilities and indebtedness
owing by Company to the Bonds Issuer, the Bonds Trustee and/or the holders of
the Bonds, in each case, including without limitation principal and interest
(including without limitation any interest accruing after the commencement of
insolvency proceedings with respect to Company, whether or not such interest is
allowed as a claim in such proceedings), fees and premiums owing by Company to
the Bonds Trustee and/or the holders of the Bonds (including reasonable
attorneys' fees), and all other amounts owing to the Bonds Trustee, the holders
of the Bonds and/or the Bonds Issuer under Collateral Agent's Documents.

         (l) "Bonds Indenture" means that certain Indenture of Trust dated as of
__________, 2002 between the Bonds Issuer and the Bonds Trustee, as in effect on
the date hereof and as amended, supplemented or otherwise modified in a manner
permitted by the Agent's Loan Agreement.

         (m) "Bonds Issuer" means the City of Weirton, West Virginia.

         (n) "Bonds Loan Agreement" means that certain Agreement dated as of
___________, 2002 between Company and the Bonds Issuer, as assigned to the Bonds
Trustee pursuant to the Bonds Indenture, as in effect on the date hereof and as
amended, supplemented or otherwise modified in a manner permitted by the Agent's
Loan Agreement.

         (o) "Bonds Trustee" means J.P. Morgan Trust Company, National
Association, in its capacity as indenture trustee under the Bonds Indenture, and
each successor indenture trustee thereunder.

         (p) "Collateral" means, collectively, (i) the Tandem Mill Collateral,
(ii) the Tin Mill Collateral, (iii) the Hot Mill Collateral, (iv) all
replacement assets or properties purchased by Company or any Subsidiary with the
proceeds of an Approved Sale or an Approved Sale and Leaseback (other than an
Approved Sale and Leaseback relating to the Tandem Mill Collateral), (v) all
Permitted Acquisition Assets, (vi) each Pledged Account, (vii) all other fixed
assets of Company or any Subsidiary on which Agent and any or all of the Lien
Holders is or are at any time granted a lien to secure all or a portion of
Agent's Debt and all or a portion of Collateral Agent's Debt, respectively,
(viii) all accessories, additions, attachments, improvements, substitutions and
replacements thereto and therefor, together with all books, records, writings,
data bases information and other similar property relating to, used or useful in
connection with, or evidencing, embodying, incorporating or referring to any of
the foregoing, (ix) all proceeds, products, rents, profits and returns of and
from all or any part of the foregoing and (x) any and all after-acquired right,
title and interest of Company in any of the foregoing. Notwithstanding the
foregoing, in no event shall the Collateral include any of the Project Assets or
any property arising from, or as a result of the disposition of, any of the
Project Assets.

                                     - 4 -
<PAGE>

         (q) "Collateral Agent" means J.P. Morgan Trust Company, National
Association, in its capacity as collateral agent under the Junior Intercreditor
Agreement, and each successor collateral agent thereunder.

         (r) "Collateral Agent's Debt" means collectively, the Notes Debt and
the Bonds Debt.

         (s) "Collateral Agent's Documents" means any and all agreements,
instruments and documents now or hereafter evidencing or securing the financing
arrangements provided for under the Notes Indenture or the Bonds Loan Agreement,
including the Bonds, the Bonds Indenture, the Bonds Loan Agreement, the Notes,
the Notes Indenture, the Junior Intercreditor Agreement and the Security
Documents, all as in effect on the date hereof and as amended, supplemented or
otherwise modified in a manner permitted by the Agent's Loan Agreement.

         (t) "Excepted Sale" means a sale, lease, conveyance or other
disposition of Collateral that is excepted from the definition of the term
"Asset Disposition" contained in the Notes Indenture (whether or not any of the
Notes Debt is outstanding or the Notes Indenture remains effective) and to which
Agent has consented, to the extent such consent is required under the terms of
the Agent's Loan Agreement.

         (u) "Hot Mill Collateral" means the real property constituting
Company's Hot Strip Mill located at Company's Weirton, West Virginia
steel-making facility, which converts slabs into flat rolled coils and which is
legally described on Exhibit A-4 attached to the Agent's Loan Agreement, as in
effect on the date hereof, together with all equipment and fixtures now or
hereafter located thereon (whether or not later moved), including without
limitation the equipment listed on Exhibit A-5 attached to the Agent's Loan
Agreement, as in effect on the date hereof and all property of the types
described in clauses (viii), (ix) and (x) of the definition of the term
"Collateral" and related to any of the foregoing.

         (v) "Junior Intercreditor Agreement" means the Collateral Agency and
Second Lien Intercreditor Agreement of even date herewith among the Notes
Trustee, the Bonds Trustee and Collateral Agent, as in effect on the date
hereof, and as amended, supplemented or otherwise modified in a manner permitted
by the Agent's Loan Agreement.

         (w) "Lien Holder" means each of Collateral Agent, the Notes Trustee and
the Bonds Trustee.

         (x) "Net Cash Proceeds" has the meaning provided to such term in the
Notes Indenture, whether or not any of the Notes Debt is outstanding or the
Notes Indenture remains effective.

         (y) "Notes" means those certain 10% Senior Secured Notes due 2008 in
the original aggregate principal amount of $__________, issued by Company
pursuant to the Notes Indenture.

                                     - 5 -
<PAGE>

         (z) "Notes Debt" means all obligations, liabilities and indebtedness
owing by Company to the Notes Trustee and/or the holders of the Notes, including
without limitation principal and interest (including without limitation any
interest accruing after the commencement of insolvency proceedings with respect
to Company, whether or not such interest is allowed as a claim in such
proceedings), fees and premiums owing by Company to the Notes Trustee and/or the
holders of the Notes (including reasonable attorneys' fees), and all other
amounts owing to the Notes Trustee and/or the holders of the Notes under
Collateral Agent's Documents.

         (aa) "Notes Indenture" means that certain Indenture dated as of
__________, 2002 between Company and the Notes Trustee, as in effect on the date
hereof, and as amended, supplemented or otherwise modified in a manner permitted
by the Agent's Loan Agreement.

         (bb) "Notes Trustee" means J.P. Morgan Trust Company, National
Association, as indenture trustee under the Notes Indenture, and each successor
indenture trustee thereunder.

         (cc) "Permitted Acquisition" has the meaning provided to such term in
the Notes Indenture, whether or not any of the Notes Debt is outstanding or the
Notes Indenture remains effective.

         (dd) "Permitted Acquisition Assets" means any fixed assets purchased by
Company or any Subsidiary in connection with a Permitted Acquisition, but only
if and to the extent that such Permitted Acquisition is financed in whole or in
part with the proceeds of loans made under the Agent's Loan Agreement.

         (ee) "Pledged Account" means a cash collateral account maintained at a
financial institution acceptable to Agent that is pledged (i) on a senior basis,
to Agent as security for Agent's Debt, in a manner acceptable to Agent and (ii)
on a junior basis, to each of the Bonds Trustee as security for the Bonds Debt
and the Notes Trustee as security for the Notes Debt, in a manner acceptable to
the Bonds Trustee and the Notes Trustee, respectively.

         (ff) "Project Assets" means all of the pollution control equipment and
fixtures located at Company's Weirton, West Virginia steel-making facility, the
purchase and/or installation of which were financed or refinanced with the
proceeds of the Pollution Control Revenue Refunding Bonds (Weirton Steel
Corporation Project) Series 1989 issued by the Bonds Issuer.

         (gg) "Security Documents" means the deeds of trust, security agreements
and other agreements, instruments and documents now or hereafter securing all or
any portion of Collateral Agent's Debt.

         (hh) "Subsidiary" means any entity of which Company owns, directly or
indirectly through one or more intermediaries, more than 50% of the voting
interests at the time of determination.

                                     - 6 -
<PAGE>

         (ii) "Tandem Mill Collateral" means the real property constituting
Company's No. 9 Tandem Mill located at Company's Weirton, West Virginia
steel-making facility and which is legally described on Exhibit A-2 attached to
the Agent's Loan Agreement, as in effect on the date hereof, together with all
equipment and fixtures now or hereafter located thereon (whether or not later
moved), including without limitation the equipment listed on Exhibit A-3
attached to the Agent's Loan Agreement, as in effect on the date hereof and all
property of the types described in clauses (viii), (ix) and (x) of the
definition of the term "Collateral" and related to any of the foregoing.

         (jj) "Tandem Mill Financing Proceeds" means the cash proceeds of an
Approved Financing Transaction, net of all legal, title and recording tax
expenses, commissions and other fees and expenses incurred in connection with
such Approved Financing Transaction.

         (kk) "Tandem Mill Sale Proceeds" means the cash proceeds of an Approved
Sale and Leaseback relating to the Tandem Mill Collateral, net of all legal,
title and recording tax expenses, commissions and other fees and expenses
incurred in connection with such Approved Sale and Leaseback and any capital
gains taxes incurred in connection with such Approved Sale and Leaseback.

         (ll) "Tin Mill Collateral" means the real property constituting
Company's Tin Mill located at Company's Weirton, West Virginia steel-making
facility and which is legally described on Exhibit A-6 attached to the Agent's
Loan Agreement, as in effect on the date hereof, together with all equipment and
fixtures now or hereafter located thereon (whether or not later moved),
including without limitation the equipment listed on Exhibit A-7 attached to the
Agent's Loan Agreement, as in effect on the date hereof and all property of the
types described in clauses (viii), (ix) and (x) of the definition of the term
"Collateral" and related to any of the foregoing.

         Each term used in this Agreement and not otherwise defined herein shall
have the meaning ascribed to such term in the Uniform Commercial Code of the
State of Illinois.

         3. Priorities; Subordination; Payments; Standby.

         (a) Agent and each Lien Holder each agrees that regardless of the time
or order of attachment, or the time, order or manner of perfection, or the time
or order of filing or recording of financing statements or mortgages or deeds of
trust, Agent's lien on and security interest in the Collateral shall be senior
to that of each Lien Holder in the Collateral. Each Lien Holder agrees to
subordinate, and does hereby subordinate, any liens and security interests it
now or hereafter has in and upon the Collateral under Collateral Agent's
Documents or otherwise to the liens and security interests of Agent in and upon
the Collateral; such subordination shall be effective with respect to each item
of Collateral until either (i) all of the commitments to make loans under the
Agent's Loan Agreement have been terminated and all of Agent's Debt has been
fully paid and indefeasibly satisfied in cash (or

                                     - 7 -
<PAGE>

otherwise to the satisfaction of Agent) or (ii) Agent has released all of its
liens on such Collateral.

         (b) Regardless of whether a default exists under any of Collateral
Agent's Documents, no Lien Holder shall, without the prior written consent of
Agent, take any action to enforce any lien on or security interest in, or
exercise any other rights with respect to, the Collateral (including without
limitation any action to commence a foreclosure action with respect to the
Collateral) until either (i) all of the commitments to make loans under the
Agent's Loan Agreement have been terminated and all of Agent's Debt has been
fully paid and indefeasibly satisfied in cash (or otherwise to the satisfaction
of Agent) or (ii) Agent has released all of its liens on such Collateral.

         (c)      (i) In the event Company desires to complete an Asset
         Disposition of Collateral pursuant to an Approved Sale, a sale or other
         disposition of Collateral pursuant to an Approved Sale and Leaseback,
         or an Excepted Sale of Collateral, each Lien Holder shall be deemed to
         have consented to such Approved Sale, Approved Sale and Leaseback or
         Excepted Sale free and clear of any liens and security interests of
         such Lien Holder; and each Lien Holder agrees that any purchaser of any
         such Collateral, Company and Agent may rely on this Agreement as
         evidence of such Lien Holder's consent to such Approved Sale, Approved
         Sale and Leaseback or Excepted Sale free and clear of any liens and
         security interests of such Lien Holder in such Collateral and such Lien
         Holder's authorization to each of such purchaser, Company and Agent to
         file deed of trust releases, UCC termination statements and other
         appropriate releases with respect to the Collateral to be sold;
         provided, that the Net Cash Proceeds, Tandem Mill Sale Proceeds, or
         cash proceeds, as applicable, of such Approved Sale, Approved Sale and
         Leaseback or Excepted Sale shall be distributed as set forth in Section
         3(d) below. Each Lien Holder agrees to execute such deed of trust
         releases, UCC termination statements and other appropriate releases
         with respect to the Collateral subject to an Approved Sale, Approved
         Sale and Leaseback or Excepted Sale as such purchaser, Company or Agent
         requests; provided, that the failure of any Lien Holder to execute any
         such deed of trust release, UCC termination statement or other
         appropriate release shall not affect the right of such purchaser,
         Company and Agent to rely on this Agreement.

                  (ii) In the event Company desires to complete an Approved
         Financing Transaction, each Lien Holder shall be deemed to have
         consented to such Approved Financing Transaction and to have
         subordinated its lien on the applicable Tandem Mill Collateral to up to
         $90,000,000 of indebtedness incurred in connection with such Approved
         Financing Transaction secured by such Tandem Mill Collateral, provided
         that Agent shall have contemporaneously received at least $25,000,000
         of the proceeds of such Approved Financing Transaction and such amount
         shall have been applied as set forth in Section 3(d)(vii) hereof. In
         connection therewith, each Lien Holder agrees that any lender to
         Company in an Approved Financing Transaction may rely on this Agreement
         as evidence of such Lien Holder's consent to such financing

                                     - 8 -
<PAGE>

         and agreement to subordinate its liens on such Tandem Mill Collateral
         as set forth hereinabove.

                  (iii) In the event Company desires to complete a sale or other
         disposition of any of the Tandem Mill Collateral pursuant to an
         Approved Sale and Leaseback or an Approved Financing Transaction, Agent
         agrees that, so long as Agent has received at least $25,000,000 of the
         proceeds of such transaction for application to Agent's Debt, any
         purchaser, lender or other party to such transaction may rely on this
         Agreement as evidence of Agent's consent to such Approved Sale and
         Leaseback or Approved Financing Transaction free and clear of any liens
         and security interests of Agent on such Tandem Mill Collateral and
         Agent's authorization to such person to file deed of trust releases,
         UCC termination statements and other appropriate releases with respect
         to such Tandem Mill Collateral. Agent agrees to execute such deed of
         trust releases, UCC termination statements and other appropriate
         releases with respect to such Tandem Mill Collateral as Company or such
         other person requests; provided, that the failure of Agent to execute
         any such deed of trust releases, UCC termination statements or other
         appropriate releases shall not affect the right of Company and such
         person to rely on this Agreement.

                  (iv) In the event Agent desires to release any amounts
         contained in a Pledged Account hereunder in connection with the
         purchase of replacement assets as set forth in Section 3(d)(iii), (iv)
         or (vi) below or the repair, rebuilding or replacement of damaged or
         destroyed Collateral pursuant to Section 3(d)(ix) below, each Lien
         Holder will be deemed to have consented to such release and released
         its liens and security interests in and to such amounts; and each Lien
         Holder agrees that Company and Agent may rely on this Agreement as
         evidence of such Lien Holder's consent to such release free and clear
         of any liens and security interests of such Lien Holder in such amounts
         and such Lien Holder's authorization to each of Company and Agent to
         file any appropriate releases with respect to such amounts. Each Lien
         Holder agrees to execute such releases with respect to such amounts as
         Company or Agent requests; provided, that the failure of any Lien
         Holder to execute any such release shall not affect the right of
         Company and Agent to rely on this Agreement.

         (d) The proceeds of each Approved Sale, Approved Sale and Leaseback,
Approved Financing Transaction, Excepted Sale or other sale, lease, conveyance
or other disposition of any Collateral shall be applied as set forth in this
clause (d), as follows:

                  (i) all cash proceeds of the sale, lease, conveyance or other
         disposition of Collateral pursuant to a foreclosure sale or other
         exercise of remedies with respect to the Collateral, or of the sale,
         lease, conveyance or other disposition of Collateral during the
         continuance of any proceeding instituted by or against Company or any
         applicable Subsidiary under the United States Bankruptcy Code or any
         similar state insolvency proceeding (including an assignment for the
         benefit of creditors) shall be applied first, to Agent's Debt (and
         shall permanently reduce the commitments under the Agent's Loan
         Agreement and the maximum amount of Agent's Debt hereunder

                                     - 9 -
<PAGE>

         only to the extent required pursuant to the Agent's Loan Agreement), so
         long as Agent has not previously released all of its liens on such
         Collateral; and after the termination of Agent's Documents and the
         indefeasible payment in cash (or otherwise to the satisfaction of
         Agent) of Agent's Debt, to Collateral Agent's Debt;

                  (ii) all cash proceeds of the sale, lease, conveyance or other
         disposition of Collateral pursuant to an Excepted Sale or any other
         transaction that does not constitute an Approved Sale or an Approved
         Sale and Leaseback, shall be applied first, to Agent's Debt (and shall
         permanently reduce the commitments under the Agent's Loan Agreement and
         the maximum amount of Agent's Debt hereunder only to the extent
         required pursuant to the Agent's Loan Agreement), so long as Agent has
         not previously released all of its liens on such Collateral; and after
         the termination of all loan commitments under the Agent's Loan
         Agreement and the indefeasible payment in cash (or otherwise to the
         satisfaction of Agent) of Agent's Debt, to Collateral Agent's Debt;

                  (iii) all Net Cash Proceeds of an Approved Sale shall be
         applied first, to Agent's Debt, and the commitments under the Agent's
         Loan Agreement and the maximum amount of Agent's Debt hereunder shall
         each be permanently reduced by the amount of such Net Cash Proceeds so
         applied to Agent's Debt; and after the termination of all loan
         commitments under the Agent's Loan Agreement and the indefeasible
         payment in cash (or otherwise to the satisfaction of Agent) of Agent's
         Debt, to Collateral Agent's Debt; provided, that if such permanent
         application to Agent's Debt is not required pursuant to the Agent's
         Loan Agreement, Company shall apply such Net Cash Proceeds to purchase
         replacement assets or to redeem a portion of Collateral Agent's Debt or
         Company's Series C Preferred Stock, all to the extent required or
         otherwise permitted by Collateral Agent's Documents; provided, further,
         that if such Net Cash Proceeds are to be used by Company to purchase
         replacement assets, such Net Cash Proceeds shall be placed in and shall
         remain in a Pledged Account and shall be released to Company as
         required in order to permit the purchase of such replacement assets
         (provided further, that if, pursuant to Agent's Documents, such pledged
         amounts are at any time thereafter required to be applied against
         Agent's Debt, the commitments under the Agent's Loan Agreement and the
         maximum amount of Agent's Debt hereunder shall each be permanently
         reduced by the amount of such pledged amounts so applied);

                  (iv) all Net Cash Proceeds of an Approved Sale and Leaseback
         that is not related to the Tandem Mill Collateral shall be applied
         first, to repay Agent's Debt, and the commitments under the Agent's
         Loan Agreement and the maximum amount of Agent's Debt hereunder shall
         each be permanently reduced by the amount of such Net Cash Proceeds so
         applied to Agent's Debt; and, after the termination of all loan
         commitments under the Agent's Loan Agreement and the indefeasible
         payment in cash (or otherwise to the satisfaction of Agent) of Agent's
         Debt, to Collateral Agent's Debt; provided, that if such permanent
         application to Agent's Debt is not required pursuant to the Agent's
         Loan Agreement, Company shall apply such Net Cash

                                     - 10 -
<PAGE>

         Proceeds to purchase replacement assets or to redeem a portion of
         Collateral Agent's Debt or Company's Series C Preferred Stock, all to
         the extent required or otherwise permitted by Collateral Agent's
         Documents; provided, further, that if such Net Cash Proceeds are to be
         used by Company to purchase replacement assets, such Net Cash Proceeds
         shall be placed in and shall remain in a Pledged Account and shall be
         released to Company as required in order to permit the purchase of such
         replacement assets (provided, that if, pursuant to Agent's Documents,
         such pledged amounts are at any time thereafter required to be applied
         against Agent's Debt, the commitments under the Agent's Loan Agreement
         and the maximum amount of Agent's Debt hereunder shall each be
         permanently reduced by the amount of such pledged amounts so applied);

                  (v) all Tandem Mill Sale Proceeds of an Approved Sale and
         Leaseback relating to the Tandem Mill Collateral that is consummated
         concurrently with a Permitted Acquisition shall be applied as follows:
         (A) $25,000,000 of such Tandem Mill Sale Proceeds shall be applied to
         Agent's Debt, and the commitments under the Agent's Loan Agreement and
         the maximum amount of Agent's Debt hereunder shall each be permanently
         reduced only to the extent required pursuant to the Agent's Loan
         Agreement; and (B) the balance of such Tandem Mill Sale Proceeds shall
         be used to finance all or a portion of such Permitted Acquisition;

                  (vi) all Tandem Mill Sale Proceeds of an Approved Sale and
         Leaseback relating to the Tandem Mill Collateral that is not
         consummated concurrently with a Permitted Acquisition shall be applied
         as follows: (A) 50% of such Tandem Mill Sale Proceeds shall be applied
         to Agent's Debt, and the commitments under the Agent's Loan Agreement
         and the maximum amount of Agent's Debt hereunder shall each be
         permanently reduced only to the extent required pursuant to the Agent's
         Loan Agreement; and (B) 50% (or such lesser percentage as may be
         required pursuant to Collateral Agent's Documents) of such Tandem Mill
         Sale Proceeds shall be used, at Company's election, to redeem a portion
         of Company's Series C Preferred Stock, to redeem a portion of
         Collateral Agent's Debt or for such other purpose as is required or
         otherwise permitted by Collateral Agent's Documents; provided, that if
         an Approved Sale and Leaseback relating to the Tandem Mill Collateral
         is consummated at a time that all of the Notes Debt has been paid in
         full, but any Bonds Debt is outstanding, and Company elects to use all
         or a portion of the Tandem Mill Sale Proceeds thereof described in this
         subclause (B) to purchase replacement assets, such portion of the
         Tandem Mill Sale Proceeds shall be placed in and shall remain in a
         Pledged Account and shall be released to Company as required in order
         to permit the purchase of such replacement assets (provided, that if,
         pursuant to Agent's Documents, such pledged amounts are at any time
         thereafter required to be applied against Agent's Debt, the commitments
         under the Agent's Loan Agreement and the maximum amount of Agent's Debt
         hereunder shall each be permanently reduced by the amount of such
         pledged amounts so applied);

                                     - 11 -
<PAGE>

                  (vii) all Tandem Mill Financing Proceeds of an Approved
         Financing Transaction that is consummated concurrently with a Permitted
         Acquisition shall be applied as follows: (A) $25,000,000 of such Tandem
         Mill Financing Proceeds shall be applied to Agent's Debt, and the
         commitments under the Agent's Loan Agreement and the maximum amount of
         Agent's Debt hereunder shall each be permanently reduced only to the
         extent required pursuant to the Agent's Loan Agreement or, if any Notes
         Debt is outstanding, clause (iv) of the definition of the term
         "Permitted Indebtedness" contained in the Notes Indenture or clause (a)
         of the definition of the term "Permitted Liens" contained in the Notes
         Indenture; and (B) the balance of such Tandem Mill Financing Proceeds
         shall be used to finance all or a portion of such Permitted
         Acquisition;

                  (viii) all cash proceeds of any of the transactions described
         in clauses (iii) - (vii) above in excess of the amounts described in
         such clauses shall be applied first, to Agent's Debt (and shall
         permanently reduce the commitments under the Agent's Loan Agreement and
         the maximum amount of Agent's Debt hereunder only to the extent
         required in the Agent's Loan Agreement); and, after the termination of
         all commitments to make loans under the Agent's Loan Agreement and the
         indefeasible payment in cash (or otherwise to the satisfaction of
         Agent) of Agent's Debt, to Collateral Agent's Debt;

                  (ix) all cash proceeds of Collateral consisting of insurance
         arising from damage to or destruction of, the Collateral and all cash
         proceeds of condemnation awards with respect to the Collateral, shall
         be promptly delivered to Agent and placed in a Pledged Account pending
         resolution of its application (provided, that if such pledged amounts
         are, pursuant to Agent's Documents, at any time thereafter required to
         be applied against Agent's Debt, the commitments under the Agent's Loan
         Agreement and the maximum amount of Agent's Debt hereunder shall each
         be permanently reduced by the amount of such pledged amounts so
         applied); and (A) if Company determines that it desires to repair,
         rebuild or replace the applicable Collateral with such proceeds, such
         proceeds shall remain in such Pledged Account and shall be released to
         Company as required in order to permit the repair, rebuilding or
         replacement of the applicable Collateral (provided further, that if,
         pursuant to Agent's Documents, such pledged amounts are at any time
         thereafter required to be applied against Agent's Debt, the commitments
         under the Agent's Loan Agreement and the maximum amount of Agent's Debt
         hereunder shall each be permanently reduced by the amount of such
         pledged amounts so applied), or (B) if Company determines not to
         repair, rebuild or replace the applicable Collateral, such amount shall
         be applied first, to Agent's Debt (and the commitments under the
         Agent's Loan Agreement and the maximum amount of Agent's Debt hereunder
         shall each be permanently reduced by the amount of such proceeds so
         applied to Agent's Debt); and, after the termination of all commitments
         to make loans under the Agent's Loan Agreement and the indefeasible
         payment in cash (or otherwise to the satisfaction of Agent) of Agent's
         Debt, to Collateral Agent's Debt; and

                                     - 12 -
<PAGE>

                  (x) all cash proceeds of Collateral not described in clauses
         (i) - (ix) above shall be applied first, to Agent's Debt (and shall
         permanently reduce the commitments under the Agent's Loan Agreement
         only the extent required in the Agent's Loan Agreement); and after the
         termination of all commitments to make loans under the Agent's Loan
         Agreement and the indefeasible payment in cash (or otherwise to the
         satisfaction of Agent) of Agent's Debt, to Collateral Agent's Debt.

         (e) If any Lien Holder receives any proceeds of Collateral which are to
be applied to Agent's Debt as provided above or to which Agent is otherwise
entitled hereunder, such Lien Holder shall hold such proceeds in trust and
deliver such proceeds in the same form received to Agent. If Agent receives any
proceeds of Collateral which are to be applied to Collateral Agent's Debt as
provided above or to which any Lien Holder is otherwise entitled hereunder,
Agent shall hold such proceeds in trust and deliver such proceeds in the same
form received to Collateral Agent.

         (f) Neither any Lien Holder nor Agent shall contest the validity,
perfection, priority (as established pursuant to the terms of this Agreement) or
enforceability of any lien or security interest on or in the Collateral granted
by Company to any other party hereto.

         (g) Each Lien Holder represents and warrants to Agent that, pursuant to
the Junior Intercreditor Agreement, Collateral Agent has been granted the power
and the right to (i) enter into this Agreement on behalf of each of the Bonds
Trustee and the Notes Trustee, (ii) bind itself, the Bonds Trustee and the Notes
Trustee as provided herein, and in particular, to subordinate the Bonds
Trustee's and the Notes Trustee's liens on and security interests in the
Collateral as provided herein and to otherwise limit the Bonds Trustee's and the
Notes Trustee's rights with respect to the Collateral as provided herein and
(iii) perform the obligations of Collateral Agent hereunder (including the
execution and delivery of appropriate releases and terminations with respect to
the Collateral); provided, however, that no representation or warranty is made
or shall be implied as to whether or not a subordination or release executed
solely by Collateral Agent is insurable by a title insurance company or is
otherwise legally sufficient. Each of the Notes Trustee and the Bonds Trustee
hereby represents and warrants to Agent that it has the power and the right to
(i) enter into this Agreement on behalf of itself and the holders of the Notes
and the Bonds, respectively, (ii) bind itself and the holders of the Notes and
the Bonds, respectively, as provided herein, and in particular to subordinate
the Bonds Trustee's and the Notes Trustee's liens on and security interests in
the Collateral as provided herein and to otherwise limit the Bonds Trustee's and
the Notes Trustee's rights with respect to the Collateral as provided herein and
(iii) perform the obligations of such Lien Holder hereunder.

         (h) Nothing in this Agreement shall affect the right of any Lien
Holder, or any holder of the Bonds or the Notes, to receive any payment in
respect thereof pursuant to the terms of Collateral Agent's Documents, except
any such payment made with the proceeds of Collateral (which payments shall be
subject to the provisions of this Section 3).

                                     - 13 -
<PAGE>

         (i) Nothing in this Agreement shall provide to (i) any Lien Holder any
right to enforce against Company any of the provisions of Agent's Documents or
any of the provisions of this Agreement that are intended to solely benefit
Agent and/or Company only, (ii) Agent any right to enforce against Company any
of the provisions of Collateral Agent's Documents or any of the provisions of
this Agreement that are intended to solely benefit a Lien Holder or a holder of
a Note or a Bond and/or Company only, except in each case, for actions to
enforce the proper application of the proceeds of Collateral in accordance with
the terms of this Agreement.

         (j) Each Lien Holder acknowledges and agrees that no obligations and
liabilities of Company to Collateral Agent, solely in its capacity as
"Collateral Agent" under the Junior Intercreditor Agreement, under the Junior
Intercreditor Agreement are or shall be secured by any of the liens or security
interests created under the Security Documents and that such obligations and
liabilities, if any, shall at all times remain unsecured obligations of Company
to Collateral Agent.

         (k) Notwithstanding anything to the contrary contained herein, none of
Agent or any Lien Holder shall be deemed to have released or be required to
release any Collateral which it may otherwise be deemed to have released or be
required to release hereunder in connection with an Approved Sale, an Approved
Sale and Leaseback or an Excepted Sale as provided hereunder, unless (i) the Net
Cash Proceeds or cash proceeds, as applicable, of such Approved Sale, Approved
Sale and Leaseback or Excepted Sale shall have been applied as provided in this
Agreement, (ii) if the Net Cash Proceeds or cash proceeds, as applicable, of
such Approved Sale, Approved Sale and Leaseback or Excepted Sale are to be
deposited into a Pledged Account pursuant to the terms hereof, Agent and each
Lien Holder shall have received a perfected security interest in and to all
funds contained in any such Pledged Account, and (iii) if the Net Cash Proceeds
or cash proceeds, as applicable, of such Approved Sale, Approved Sale and
Leaseback or Excepted Sale are to be used to purchase replacement properties or
assets, each of Agent and/or each Lien Holder, as applicable, has received a
perfected lien and security interest in and to such replacement properties or
assets pursuant to deeds of trust, mortgages, security agreements and/or other
security documents reasonably satisfactory to Agent and/or each Lien Holder, as
applicable.

         4. Assignment. Each of each Lien Holder and Agent represents that it
has not assigned or transferred, and agrees that it will not assign or transfer
at any time this Agreement remains in effect, any right, claim or interest of
any kind in or to the Collateral, unless such right, claim and interest remains
subject to this Agreement. Each Lien Holder agrees to promptly notify Agent in
writing of the appointment of a successor Collateral Agent, Bonds Trustee or
Notes Trustee and Agent agrees to promptly notify each Lien Holder in writing of
the appointment of a successor Agent.

         5. Waivers; Bankruptcy Financing. Each Lien Holder expressly waives all
notice of the acceptance by Agent of the subordination and other provisions of
this Agreement and all the notices not specifically required pursuant to the
terms of this Agreement whatsoever and each Lien Holder expressly waives
reliance by Agent upon the

                                     - 14 -
<PAGE>

subordination and other agreements as herein provided. Each of Agent and each
Lien Holder shall be entitled to manage and supervise its financing arrangement
with Company in accordance with applicable law and its usual practices without
affecting the validity or enforceability of this Agreement. This Agreement shall
be fully enforceable after the commencement, and during the continuance, of any
proceeding instituted by or against Company or any Subsidiary under the United
States Bankruptcy Code, in any similar state insolvency proceeding (including an
assignment for the benefit of creditors). The validity and enforceability of
this Agreement shall not be affected by (a) any and all actions which Agent
takes or omits to take (including without limitation actions with respect to the
creation, perfection or continuation of liens on or security interests in any
Collateral, actions with respect to the occurrence of an Event of Default under
Agent's Documents, actions with respect to the foreclosure upon, sale, release
or depreciation of, or failure to realize upon any of the Collateral), (b)
Agent's election, in any proceeding instituted under the United States
Bankruptcy Code of the application of Section 1111(b)(2) of the United States
Bankruptcy Code, and/or (c) any borrowing or grant of a security interest under
Section 363 or 364 of the United States Bankruptcy Code by Company, as debtor in
possession with respect to the Collateral. In that regard, each Lien Holder
agrees that (A) if Company desires to use cash collateral under Section 363 of
the United States Bankruptcy Code and Agent consents to such use, such Lien
Holder will also consent to such use without asserting any objection of any kind
(including an objection on the grounds of failure to provide adequate protection
for such Lien Holder's junior lien on such Collateral), and (B) if Company
desires to obtain credit from Agent or any lender under the Agent's Loan
Agreement under Section 364 of the United States Bankruptcy Code to be secured
by the Collateral (or any other collateral securing Agent's Debt), such Lien
Holder will consent to such credit without asserting any objection of any kind
(including an objection on the grounds of failure to provide adequate protection
for such Lien Holder's junior lien on such Collateral), in each case so long as
(i) each Lien Holder retains a lien on the post-petition Collateral with the
same priority as existed prior to the commencement of the applicable proceeding
under the United States Bankruptcy Code to the extent such Lien Holder may be
entitled to such a lien and such Lien Holder (on behalf of the applicable
holders of the Notes and the Bonds) is permitted to receive such payments of
interest during such proceeding as adequate protection as it may have been
entitled to hereunder and under the United States Bankruptcy Code, if any, and
(ii) the principal amount of the maximum commitments to provide such
post-petition financing, when aggregated with the principal amount of Agent's
Debt immediately prior to the commencement of such proceeding, does not exceed
the maximum amount of such indebtedness permitted by Collateral Agent's
Documents. Subject to the foregoing, each Lien Holder, each holder of Collateral
Agent's Debt, Agent and each holder of Agent's Debt shall have the right, during
the continuance of any proceeding instituted under the United States Bankruptcy
Code, to file its own proof of claim and vote such claim in the manner
determined by it.

         6. Marshaling. Until such time as the commitments to make loans under
the Agent's Loan Agreement have been terminated and Agent's Debt has been fully
paid and indefeasibly satisfied in cash (or otherwise to the satisfaction of
Agent), or Agent shall have

                                     - 15 -
<PAGE>

released all of its liens on the Collateral, each Lien Holder hereby waives any
rights such Lien Holder has or may have in the future to require Agent to
marshal the Collateral (or any other collateral securing Agent's Debt), and
agrees that Agent may proceed against the Collateral (and all other collateral
securing Agent's Debt) in any order that it deems appropriate in the exercise of
its absolute discretion.

         7. Representations Concerning Company: Liability of Parties. None of
the parties hereto, nor any of such party's directors, officers, agents or
employees, shall be responsible to any other party hereto or to any other person
for (i) Company's solvency, financial condition or ability to repay its
indebtedness to any party hereto, (ii) any oral or written statements of
Company, or (iii) the validity, sufficiency or enforceability of such
indebtedness, Collateral Agent's Documents, Agent's Documents or the security
interests and liens granted by Company to any party hereto. Each party hereto
has entered into its financing arrangement with Company based upon such party's
own independent investigation, and makes no warranty or representation to any
other party hereto, nor does such party rely on any warranty or representation
of any other party hereto, with respect to the matters referred to in this
paragraph.

         8. Authority. Each of each Lien Holder and Agent hereby represents to
the others that it has full right, power and authority to execute and deliver
this Agreement and to perform its obligations hereunder. Agent further
represents and warrants to each Lien Holder that, pursuant to the Agent's Loan
Agreement, Agent has been granted the power and the right to (i) enter into this
Agreement on behalf of each lender under the Agent's Loan Agreement, (ii) bind
itself and each lender under the Agent's Loan Agreement as provided herein and
(iii) take all actions required to be taken by Agent hereunder.

         9. Termination. This Agreement shall terminate in all respects upon
indefeasible repayment in cash (or otherwise to the satisfaction of Agent), of
Agent's Debt and termination of all commitments to make loans under the Agent's
Loan Agreement or Agent's release of its liens on all of the Collateral, at
which time each Lien Holder shall be free to exercise all of its rights and
remedies with respect to the Collateral.

         10. Miscellaneous.

         (A) THE VALIDITY OF THIS AGREEMENT, ITS CONSTRUCTION, INTERPRETATION,
AND ENFORCEMENT, AND THE RIGHTS OF THE PARTIES HERETO WITH RESPECT TO ALL
MATTERS ARISING HEREUNDER OR RELATED HERETO SHALL BE DETERMINED UNDER, GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS, WITHOUT
GIVING EFFECT TO ITS CONFLICT OF LAWS PRINCIPLES. EACH OF EACH LIEN HOLDER AND
AGENT HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS
CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER

                                     - 16 -
<PAGE>

COMMON LAW OR STATUTORY CLAIMS. EACH OF EACH LIEN HOLDER AND AGENT REPRESENTS
THAT IT HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS
JURY TRIAL RIGHTS. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

         (b) This Agreement contains the entire agreement among the parties
hereto with respect to this subject, and may only be modified by a writing
signed by each of the parties hereto.

         (c) Either party's failure to exercise any right hereunder shall not be
construed as a waiver of the right to exercise the same or any other right at
any other time and from time to time thereafter, and such rights shall be
cumulative and not exclusive.

         (d) The knowledge by either party of any breach or other non-observance
by the other party of the terms of this Agreement shall not constitute a waiver
thereof or of any obligations to be performed by such party hereunder.

         (e) Paragraph headings used herein are for convenience only, and shall
not affect the meaning of any provision of this Agreement.

                                     - 17 -
<PAGE>

         (f) All notices or consents required under the terms and provisions of
this Agreement shall be in writing and sent to the following addresses:

          If to Collateral Agent, the Notes J.P. Morgan Trust Company,
          Trustee or the Bonds Trustee:  National Association

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

                                         --------------------------------------
                                         Pittsburgh, Pennsylvania
                                                                  -------------
                                         Attention:
                                                    ---------------------------
                                         Facsimile #:
                                                      -------------------------

          in each case, with a copy to:  Weirton Steel Corporation
                                         400 Three Springs Drive
                                         Weirton, West Virginia  26062
                                         Attention: Mark E. Kaplan, Senior Vice
                                                    President - Finance and
                                                    Administration
                                         Facsimile No.:  (304) 797-2991

          If to Agent:                   Fleet Capital Corporation
                                         One South Wacker Drive
                                         Suite 1400
                                         Chicago, Illinois  60606
                                         Attention:  Loan Administration Manager
                                         Facsimile #:  (312)  827-6537

          With a copy to:                Weirton Steel Corporation
                                         400 Three Springs Drive
                                         Weirton, West Virginia  26062
                                         Attention: Mark E. Kaplan, Senior Vice
                                                    President - Finance and
                                                    Administration
                                         Facsimile No.:  (304) 797-2991

Notices shall be deemed to have been duly given (i) if delivered personally or
otherwise actually received, (ii) if sent by overnight delivery service, (iii)
if mailed by first class United States mail, postage prepaid, registered or
certified, with return receipt requested, or (iv) if sent by facsimile. Notice
mailed as provided in clause (iii) above shall be effective on the earlier of
the date of actual receipt or three (3) business days after its deposit. Notice
given in any other manner described in this paragraph shall be effective upon
receipt by the addressee thereof; provided, however, that if any notice is
tendered to an addressee and delivery thereof is refused by such addressee, such
notice shall be effective upon such tender.

         (g) This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns. The term
"Company" shall

                                     - 18 -
<PAGE>

include, without limitation, any successor or assign of Company,
including without limitation a receiver, trustee or debtor in possession. This
Agreement shall be a continuing agreement and shall remain in full force and
effect notwithstanding the insolvency, liquidation or dissolution of Company.

         (h) Each Lien Holder hereby agrees that any party that refinances
Agent's Debt in compliance with the terms of Collateral Agent's Documents, may
rely on and enforce this Agreement as if it were Agent. Each Lien Holder further
hereby agrees that it will, at the request of Agent, enter into an agreement, in
the form of this Agreement, mutatis mutandis, to subordinate any security
interests and liens it now or hereafter has in or upon the Collateral, to the
same extent as provided herein, to the party refinancing all or a portion of
Agent's Debt; provided, that the failure of any Lien Holder to execute such an
agreement shall not affect such party's right to rely on and enforce the terms
of this Agreement. This Section 10(h) will survive the termination of this
Agreement so long as any of either the Notes Debt or the Bonds Debt remains
outstanding.

         (i) This Agreement shall be for the benefit of, and shall be
enforceable solely by, the parties hereto, and except as set forth in Section
3(c) above, no other person or entity shall be a third party beneficiary hereof
or have the right to enforce any of the provisions hereof.

                                     - 19 -
<PAGE>

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

                                J.P. MORGAN TRUST COMPANY,
                                  NATIONAL ASSOCIATION, as Collateral Agent

                                By
                                   --------------------------------------------
                                Its
                                    -------------------------------------------

                                J.P. MORGAN TRUST COMPANY,
                                  NATIONAL ASSOCIATION, as the Notes Trustee

                                By
                                   --------------------------------------------
                                Its
                                    -------------------------------------------

                                J.P. MORGAN TRUST COMPANY,
                                  NATIONAL ASSOCIATION, as the Bonds Trustee

                                By
                                   --------------------------------------------
                                Its
                                    -------------------------------------------

                                FLEET CAPITAL CORPORATION, as Agent

                                By
                                   --------------------------------------------
                                Its
                                    -------------------------------------------

                                     CONSENT

         The undersigned hereby consents to the terms of the foregoing
Intercreditor Agreement and agrees to be bound by the terms thereof.

WEIRTON STEEL CORPORATION

By
   --------------------------------------------
Its
    -------------------------------------------

                                     - 20 -

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