Document:

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                                                                     Exhibit 4.6

                         ACCESS INTERCREDITOR AGREEMENT

               ACCESS INTERCREDITOR AGREEMENT ("Agreement"), dated as of August
16, 2002, between (a) FLEET CAPITAL CORPORATION, a Rhode Island corporation,
acting in its capacity as Administrative Agent (as hereinafter defined), for
itself and the other Lenders (as hereinafter defined) party to the Credit
Agreement (as hereinafter defined), (b) LASALLE BANK NATIONAL ASSOCIATION,
acting in its capacity as Indenture Trustee (as hereinafter defined) and
Collateral Agent (as hereinafter defined) for the Senior Note Holders (as
hereinafter defined), (c) REPUBLIC ENGINEERED PRODUCTS LLC, a Delaware limited
liability company (the "Borrower"), (d) BLUE BAR, L.P., a Delaware limited
partnership (the "Parent"), and (e) BLUE STEEL CAPITAL CORP., a Delaware
corporation ("Blue Steel"), and N&T Railway Company LLC, a Delaware limited
liability company (collectively, the "Subsidiary Guarantors", and together with
the Borrower and the Parent, the "Companies").

                                R E C I T A L S:

               A. Reference is made to (i) the Revolving Credit Agreement, dated
as of August 16, 2002 (as amended, amended and restated, supplemented or
otherwise modified from time to time, including any refinancing, re-funding,
replacement or extension thereof or a portion thereof and whether by the Lenders
(as hereinafter defined) or any other lender or group of lenders, (but excluding
any such refinancing, replacement or refunding thereof that would violate the
terms of the Indenture as in effect on the date hereof) the "Credit Agreement"),
among the Borrower, the Parent, the Subsidiary Guarantors, the financial
institutions party thereto as lenders (the "Lenders"), and Fleet Capital
Corporation, as administrative agent for the Lenders (in such capacity, the
"Administrative Agent"; together with the Lenders, the "Credit Agreement
Parties"), and (ii) the Indenture, dated as of August 16, 2002 (as amended or
modified from time to time, the "Indenture"), among LaSalle Bank National
Association, a national banking association, as trustee (in such capacity, the
"Indenture Trustee") and as collateral agent (in such capacity, the "Collateral
Agent")for the holders of the Senior Notes (as defined below) from time to time
(the "Senior Note Holders"), the Borrower and Blue Steel, as issuers (the
"Issuers"), the Parent and the Subsidiary Guarantors party thereto.

               B. The Lenders have agreed to make Revolving Credit Loans (as
defined in the Credit Agreement and which term will include any loans,
revolving, term or otherwise, made under the Credit Agreement) to, and issue
Letters of Credit (as defined in the Credit Agreement) for the account of, the
Borrower in an aggregate principal amount of up to $336,000,000 upon the terms
and subject to the conditions specified in the Credit Agreement. Pursuant to the
Indenture, the Issuers are issuing $80,000,000 aggregate principal amount of
their 10% Senior Secured Notes due 2009 (together with any substantially
identical notes of the Issuers issued in exchange therefor in accordance with
the Indenture, the "Senior Notes").

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                                      -2-

               C. Pursuant to the Credit Agreement Security Documents to which
the Borrower and each Subsidiary Guarantor is a party, the Borrower and each
Subsidiary Guarantor is granting to the Administrative Agent, for the benefit of
the Credit Agreement Parties, a lien on and security interest in the Credit
Agreement Collateral to secure the Credit Agreement Obligations. Pursuant to the
Senior Note Security Documents to which the Borrower and each Subsidiary
Guarantor is a party, the Borrower and each Subsidiary Guarantor are granting to
the Indenture Trustee, for the benefit of the Senior Note Holders, a lien on and
security interest in the Senior Note Collateral to secure the Senior Note
Obligations.

               D. In addition, each of the Borrower and the Parent is entering
into the Pledge Agreement, dated as of the date hereof (the "Lender Pledge
Agreement"), under which each of the Borrower and the Parent is granting to the
Administrative Agent a lien on and security interest in the Shared Collateral to
secure the Credit Agreement Obligations. Pursuant to the Indenture, each of the
Borrower and the Parent is also entering into the Pledge Agreement, dated as of
the date hereof (the "Indenture Pledge Agreement", and together with the Lender
Pledge Agreement, the "Pledge Agreements"), under which it is granting to the
Indenture Trustee a lien on and security interest in the Shared Collateral to
secure the Senior Note Obligations. The Shared Collateral shall be shared pari
passu among the Credit Agreement Parties and the Senior Note Holders in
accordance with the provisions of the Pledge Intercreditor Agreement.

               E. On April 2, 2001, Republic Technologies International ("RTI")
and certain of its subsidiaries commenced cases in the United States Bankruptcy
Court for the Northern District of Ohio, Eastern Division (the "Bankruptcy
Court"), under Chapter 11 of the Bankruptcy Code. On the date hereof, the
Borrower is acquiring a substantial portion of the assets of RTI and its
subsidiaries pursuant to the following: (i) an Asset Purchase Agreement, dated
June 7, 2002 (as amended, supplemented or otherwise modified from time to time,
the "RTI Asset Purchase Agreement"), among RTI and certain of its subsidiaries,
and the Borrower; and (ii) an order of Bankruptcy Court, dated July 23, 2002
(the "Sale Order"), entitled "Amended Order Superseding Order (A) Approving Sale
of Certain Assets Free and Clear Of Liens and Stamp or Transfer Taxes Pursuant
to Bankruptcy Code Section 363(f) and 1146(c), (B) Approving Assumption and
Assignment of Executory Contracts and Unexpired Leases Subject to the Sale
Pursuant to Bankruptcy Code Section 364 and, (C) Approving Settlement Agreement
USWA, and (D) Waiving the Requirements of Local Bankruptcy Rule 9013-1(a) and
the Ten Day Stay Period Provided by Bankruptcy Rule 6004(g), to which is
attached and made a part thereof the Stipulation Settling Disputes between
Republic Technologies International, LLC, RT Acquisition LLC, Fleet Capital
Corporation, as agent, and the Majority Noteholders of Senior Secured 13-3/4%
Notes (the "RTI Majority Noteholders"), dated July 11, 2002 (the "Stipulation").
Pursuant to the Sale Order, and in exchange for the issuance of the Senior
Notes, all Liens on the property and assets to be purchased pursuant to the RTI
Asset Purchase Agreement and the Sale Order which constitutes collateral
securing the RTI Notes ("Specified Noteholder Collateral") that is subject to
the jurisdiction of the Bankruptcy Court are to be released at the time of the
purchase and the Senior Notes are to be secured by a first lien on the Specified
Noteholder Collateral. The rights, claims and interests of the RTI Notes, the
holders thereof and the relevant Indenture Trustee as to the collateral of the
RTI Notes that are not being purchased by the Purchaser pursuant to the RTI
Asset Purchase Agreement and Sale Order shall not be subject to this Agreement
in any respect and the rights of the holders of the RTI Notes and the Indenture
Trustee are preserved and are not adversely affected hereby.

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               F. Each of the Secured Parties desires to provide for their
respective rights in respect of the Collateral to which it is entitled and
certain collections from the Companies and to make certain other commitments and
undertakings in connection with the Senior Credit Documents, the obligations
incurred by the Companies under such agreements and the rights of the Secured
Parties under such agreements.

                               A G R E E M E N T:

               Accordingly, each of the Secured Parties and each of the
Companies hereby agrees as follows:

                                    ARTICLE I

                                   DEFINITIONS

               SECTION 1.01. Definition of Terms Used Herein. All capitalized
terms used but not defined herein shall have the meanings set forth in the
Credit Agreement, the Indenture, the Lender Pledge Agreement and the Indenture
Pledge Agreement, as identified and defined herein. All references to specific
Sections in the Credit Agreement shall be deemed to also be references to the
parallel provision of any other credit agreement included within the definition
of "Credit Agreement."

               SECTION 1.02. Definitions of Certain Terms Used Herein. As used
herein, the following terms shall have the meanings set forth below:

               "Accounts" shall mean, collectively, all of the Borrower's and
Subsidiary Guarantors' presently existing and hereafter arising or acquired
"accounts" as such term is defined in the UCC, and in any event shall include,
without limitation, (i) any and all accounts, accounts receivable, margin
accounts, futures positions, book debts, instruments, documents, contracts,
contract rights, choses in action, notes, drafts, acceptances, chattel paper,
and other forms of obligations and receivables now or hereafter owned or held by
or payable to the Borrower or any Subsidiary Guarantor relating in any way to
Inventory or arising from the sale or lease of Inventory or the rendering of
services by the Borrower or any Subsidiary Guarantor, including the right to
payment of any interest or finance charge with respect thereto, together with
all merchandise represented by any of the accounts, (ii) all such merchandise
that may be reclaimed or repossessed or returned to any applicable Company,
(iii) all of the Borrower's and the Subsidiary Guarantors' rights as an unpaid
vendor, including stoppage in transit, reclamation, replevin and sequestration,
(iv) all pledged assets and all letters of credit, guarantee claims, Liens, and
security interests held by or granted to the Borrower or any Subsidiary
Guarantor to secure payment of any accounts and which are delivered for or on
behalf of any account debtor, (v) all accessions to all of the foregoing
described properties and interests in properties, (vi) all guarantees,
endorsements and indemnifications on, or of, any of the foregoing, (vii) all
customer lists and invoices, (viii) all Intangibles to the extent relating to
any of the foregoing, (ix) all Documents to the extent relating to any of the
foregoing and (x) all Proceeds of any of the foregoing.

               "Administrative Agent" shall have the meaning set forth in the
Recitals hereto.

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                                      -4-

               "Availability" shall have the meaning assigned to such term in
the Credit Agreement.

               "Blue Steel" shall have the meaning set forth in the Preamble.

               "Borrower" shall have the meaning set forth in the Preamble.

               "Business Day" shall mean any day (other than a day that is a
Saturday, a Sunday or a legal holiday in the State of New York) on which banks
are open for business in New York City.

               "Collateral" shall mean the Credit Agreement Collateral, the
Senior Note Collateral and/or the Shared Collateral, as the case may be.

               "Companies" shall have the meaning set forth in the Preamble.

               "Copyrights" means, collectively, all of the Borrower's and the
Subsidiary Guarantors' copyrights, whether statutory or common law and whether
presently existing or hereafter arising or acquired, and all applications,
registrations and recordings relating to such copyrights in the United States
Copyright Office or in any similar office or agency of the United States, any
State thereof, any political subdivision thereof or in any other country,
together with any and all (i) rights and privileges arising under applicable law
with respect to the Borrower's or any Subsidiary Guarantor's use of any
copyrights, (ii) reissues, extensions, continuations and renewals thereof, (iii)
income, fees, royalties, damages and payments now and hereafter due and/or
payable with respect thereto, including, without limitation, damages and
payments for past or future infringements thereof, (iv) rights corresponding
thereto throughout the world and (v) rights to sue for past, present and future
infringements thereof.

               "Credit Agreement" shall have the meaning set forth in the
Recitals hereto.

               "Credit Agreement Collateral" shall have the meaning given the
term "Collateral" set forth in the Credit Agreement Security Documents,
provided, however, that the term Credit Agreement Collateral as used herein
shall not include the Shared Collateral.

               "Credit Agreement Guaranty" shall mean the Guaranty as defined in
the Credit Agreement.

               "Credit Agreement Obligations" shall have the meaning given the
term "Obligations" in the Credit Agreement.

               "Credit Agreement Parties" shall have the meaning set forth in
the Recitals hereto.

               "Credit Agreement Security Documents" shall have the meaning
given the term "Security Documents" in the Credit Agreement.

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                                      -5-

               "Documents" means, collectively, all of the Borrower's and
Subsidiary Guarantors' now owned or hereafter acquired "documents," as such term
is defined in the UCC, relating to any item or type of Collateral, and shall
also include, without limitation, any and all lists, books, records, ledgers,
printouts, computer programs, computer disks or tape files, computer runs and
other computer prepared information, files (whether in printed form or stored
electronically), tapes and other papers or materials containing information to
the extent relating to any item or type of Collateral.

               "Enforcement" shall mean, collectively or individually, to make
demand for payment or accelerate the Indebtedness of the Borrower or any other
Company (other than any acceleration which may occur automatically upon the
filing of a bankruptcy petition), repossess any collateral or commence the
judicial or other enforcement of any of the rights and remedies under any of the
Senior Credit Documents or the Security Documents.

               "Enforcement Notice" shall mean a written notice delivered by any
Secured Party to the other Secured Parties, stating that an Event of Default (as
defined herein) has occurred and that the Secured Party delivering such notice
intends to realize upon its security interest in all or any portion of the
Collateral to which it is entitled. An Enforcement Notice shall be deemed to
have been given when the Enforcement Notice has been sent to the other Secured
Parties by certified U.S. mail, return receipt requested, and to have been
rescinded when the other Secured Parties have received satisfactory evidence
that such Event of Default has been cured or when such Event of Default has been
effectively waived for purposes of this Agreement. An Enforcement Notice shall
be deemed to be outstanding at all times after such Notice has been given until
such time, if any, as such Notice has been rescinded.

               "Event of Default" shall mean any "Event of Default" as defined
in the Credit Agreement and any "Event of Default" as defined in the Indenture.

               "Goodwill" means all goodwill connected with the use of, and
symbolized by, any of the Copyrights, Patents, Trademarks and Licenses.

               "Guarantees" shall mean, collectively, the Credit Agreement,
Guaranty and the Indenture Guaranty.

               "Indemnitees" shall have the meaning set forth in Article V.

               "Indenture Pledge Agreement" shall have the meaning set forth in
the Recitals hereto.

               "Indenture Guarantee" shall mean the Guarantee as defined in the
Indenture.

               "Indenture Trustee" shall have the meaning set forth in the
Recitals hereto.

               "Indentures" shall have the meaning set forth in the Recitals
hereto.

               "Intangibles" shall mean, collectively, all of the Borrower's and
Subsidiary Guarantors' presently existing or hereafter arising or acquired
"general intangibles," as such term is defined in the UCC, relating to any item
or type of Collateral, and, in any event, shall

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                                      -6-

include, without limitation, any and all contract rights, goodwill (other than
Goodwill), descriptions, name plates, claims, choses-in-action, causes of
action, catalogs, confidential information, consulting agreements, engineering
contracts, and such other assets which relate to the goodwill (other than
Goodwill) of the business of the Borrower or any Subsidiary Guarantor and rights
to refund or indemnification to the extent the foregoing relate to any item or
type of Collateral, deposits and deposit accounts, letters of credit, documents,
instruments, chattel paper, banker's acceptances and guarantees, and income tax
refunds to the extent relating to any item or type of Collateral, claims for tax
or other refunds against any city, county or state or federal government, or any
agency or authority or other subdivision thereof relating to any item or type of
Collateral, corporate or other business records relating to any item or type of
Collateral, and all other general intangibles of every kind and description
relating to any item or type of Collateral.

               "Intellectual Property" means, collectively, (i) all Copyrights,
Patents, Trademarks, Licenses and Goodwill, (ii) all Intangibles to the extent
relating to any of the foregoing, (iii) all Documents to the extent relating to
any of the foregoing, and (iv) all Proceeds of any of the foregoing.

               "Inventory" shall mean, collectively, all now owned or hereafter
acquired "inventory" (as such term is defined in the UCC) of the Borrower and
the Subsidiary Guarantors wherever located, and, in any event, shall include,
without limitation, (i) all goods, merchandise, raw materials, supplies (other
than supplies which would constitute spare parts), work-in-process and finished
goods intended for sale or lease, of every kind and description now or at any
time hereafter owned by the Borrower or any Subsidiary Guarantor, together with
all the containers, packing, packaging, shipping and similar materials related
thereto, and including such inventory as is temporarily out of the Borrower's or
any Subsidiary Guarantor's custody or possession and items in transit and
including any returns and repossessions upon any accounts, documents,
instruments or chattel paper relating to or arising from the sale of inventory
(as such documents, instruments or chattel paper relate to the sale of such
inventory) and including, without limitation, all other classes of merchandise,
materials, parts, supplies, work-in-process, inventories and finished products
intended for sale by the Borrower and the Subsidiary Guarantors and all
substitutions therefor or replacements thereof, and all additions and accessions
thereto, (ii) all Intangibles to the extent relating to any of the foregoing,
(iii) all Documents to the extent relating to any of the foregoing and (iv) all
Proceeds of any of the foregoing.

               "Issuers" shall have the meaning set forth in the Recitals
hereto.

               "Lenders" shall have the meaning set forth in the Recitals
hereto.

               "Licenses" means, collectively, all of the Borrower's and
Subsidiary Guarantors' presently existing or hereafter arising or acquired
license and distribution agreements with any other party with respect to a
Patent, Trademark or Copyright, whether the Borrower or such Subsidiary
Guarantor is a licensor or licensee, distributor or distributee under any such
license or distribution agreement, along with any and all (i) renewals,
extensions, supplements and continuations thereof, (ii) income, royalties,
damages and payments now and hereafter due and/or payable to the Borrower or
such Subsidiary Guarantor with respect thereto, including,

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                                      -7-

without limitation, damages and payments for past or future infringements or
violations thereof and (iii) rights to sue for past, present and future
infringements or violations thereof.

               "Majority Noteholders" means, at any time, holders at such time
of a majority by principal amount of the issued and outstanding Senior Notes
under the Indenture.

               "Melt Shop" shall have the meaning set forth in Section 2.02(a).

               "Obligations" shall mean collectively the Credit Agreement
Obligations and the Senior Note Obligations.

               "Outstanding Credit Agreement Obligations" shall mean, at any
time, the sum (without duplication) of (i) the aggregate principal amount of the
Revolving Credit Loans at such time and the aggregate amount of accrued and
unpaid interest thereon at such time, (ii) any Unfunded L/C Exposure, (iii) the
aggregate amount of all Letters of Credit not yet reimbursed to the Lenders and
accrued and unpaid interest thereon at such time, (iv) the aggregate amount of
all other monetary obligations that are accrued and owing at such time to the
Credit Agreement Parties or any of them under the Credit Agreement, the Security
Documents and the Guarantees, including fees, costs, expenses, indemnities and
premiums, if any, (v) the aggregate amount of all monetary obligations of the
Companies at such time under all Rate Protection Agreements entered into with
any counterparty that was a Lender at the time such Rate Protection Agreement
was entered into, and (vi) all indebtedness, obligations and liabilities of the
Companies in connection with cash management services provided by the
Administrative Agent or Fleet National Bank.

               "Outstanding Obligations" shall mean, at any time, the sum of (i)
the Outstanding Credit Agreement Obligations at such time and (ii) the
Outstanding Senior Note Obligations at such time.

               "Outstanding Senior Note Obligations" shall mean, at any time,
the sum (without duplication) of (i) the aggregate principal amount of the
outstanding Senior Notes at such time and the aggregate amount of accrued and
unpaid interest thereon at such time and (ii) the aggregate amount of all other
monetary obligations that are accrued and owing at such time to the Senior Note
Creditors or any of them under the Indenture, the Security Documents and
Guarantees, including fees, costs, expenses, indemnities and premiums, if any.

               "Patents" shall mean, collectively, all of the Borrower's and
Subsidiary Guarantors' patents and all applications, registrations and
recordings relating thereto as may at any time be filed in the United States
Patent and Trademark Office or in any similar office or agency of the United
States, any State thereof, any political subdivision thereof or in any other
country, together with any and all (i) rights and privileges arising under
applicable law with respect to the Borrower or such Subsidiary Guarantor's use
of any patents, (ii) inventions and improvements described and claimed therein,
(iii) reissues, divisions, continuations, renewals, extensions and
continuations-in-part thereof, (iv) income, fees, royalties, damages and
payments for past or future infringements thereof, (v) rights corresponding
thereto throughout the world and (vi) rights to sue for past, present and future
infringements thereof.

               "Pledge Agreement" shall have the meaning set forth in the
Recitals hereto.

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                                      -8-

               "Proceeds" shall have the meaning assigned to the term "proceeds"
under the UCC and, in any event, shall include, without limitation, any and all
(i) proceeds of any insurance (except payments made to a person that is not a
party to this Agreement), (ii) indemnity, warranty, guarantee or claim payable
to the Indenture Trustee, the Administrative Agent, the Borrower or any
Subsidiary Guarantor, as the case may be, from time to time with respect to any
item or type of Collateral, (ii) payments (in any form whatsoever) made or due
and payable to the Borrower or any Subsidiary Guarantor from time to time in
connection with any requisition, confiscation, condemnation, seizure or
forfeiture of all or any part of any item or type of Collateral by any
governmental authority (or any person acting under color of a governmental
authority), (iii) products of any item or type of Collateral, and (iv) other
amounts from time to time paid or payable under or in connection with any item
or type of Collateral.

               "Required Lenders" shall mean the "Majority Lenders" (as such
term is defined in the Credit Agreement).

               "RTI" shall have the meaning set forth in the Recitals hereto.

               "Secured Parties" shall mean the Administrative Agent, on behalf
of the Credit Agreement Parties, and the Indenture Trustee, on behalf of the
Senior Note Creditors, and their respective successors and permitted assigns
under the Credit Agreement or the Indenture, as the case may be.

               "Security Documents" shall mean the Credit Agreement Security
Documents and the Senior Note Security Documents.

               "Senior Credit Documents" shall mean the Credit Agreement, the
Indenture and the Security Documents.

               "Senior Notes" shall have the meaning set forth in the Recitals
hereto.

               "Senior Note Collateral" shall have the meaning given the term
"Collateral" set forth in the Senior Note Security Documents, provided, however,
that the term Senior Note Collateral as used herein shall not include the Shared
Collateral.

               "Senior Note Collateral Account" shall have the meaning set forth
in Section 4.01.

               "Senior Note Creditors" shall mean the Senior Note Holders and
the Indenture Trustee.

               "Senior Note Obligations" shall have the meaning given the term
"Obligations" in the Indenture.

               "Senior Note Security Documents" shall have the meaning given the
term "Security Documents" in the Indenture.

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                                      -9-

               "Senior Noteholders" shall have the meaning set forth in the
Recitals hereto.

               "Shared Collateral" shall mean, collectively, (i) all capital
stock, membership interests and/or partnership interests of the Borrower and
each of the Subsidiary Guarantors, together with all rights, privileges,
authority and powers of each such person in and to the equity interests in each
such person or under the membership or partnership agreement of such person and
the certificates, instruments and agreements, if any, representing such
membership or partnership interests, (ii) all issued and outstanding shares of
capital stock of the Borrower and each of the Subsidiary Guarantors, if any,
including the certificates representing such shares and any interest of any such
person in the entries on the books of any financial intermediary pertaining to
such shares, (iii) all additional membership interests, partnership interests
and shares of capital stock (as applicable) of any issuer of the interests and
shares described in clauses (i) and (ii) of this definition from time to time
acquired by any such person in any manner and all membership interests and
partnership interests and issued and outstanding shares of capital stock of each
person which, after the date of this Agreement, is or becomes, as a result of
any occurrence, a Subsidiary Guarantor, including any right relating to the
equity or membership or partnership interests in any such person or under the
membership or partnership agreement of any such person, from time to time
acquired by such person in any manner and the certificates, instruments and
agreements, if any, representing such additional interests, the certificates
representing such additional interests and shares and any interest of any such
person in the entries on the books of any financial intermediary pertaining to
such additional shares, (iv) all dividends, cash, options, warrants, rights,
instruments, distributions, partnership distributions, returns of capital,
income, profits and other property, interests or proceeds from time to time
received, receivable or otherwise distributed to any such person in respect of
or in exchange for any or all of such interests and shares, (v) all Intangibles
to the extent relating to any of the foregoing, (vi) all Documents to the extent
relating to any of the foregoing, and (vii) all Proceeds of any of the
foregoing.

               "Trademarks" shall mean, collectively, all of the Borrower's and
Subsidiary Guarantors' trademarks (including service marks), trademark
registrations, trade styles and trade names and applications therefor as may at
any time be filed in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof, any political
subdivision thereof or in any other country, together with any and all (i)
rights and privileges arising under applicable law with respect to the
Borrower's or any Subsidiary Guarantor's use of any trademarks, (ii) reissues,
continuations, extensions and renewals thereof, (iii) income, fees, royalties,
damages and payments now or hereafter due and/or payable under or with respect
thereto, including, without limitation, damages and payments for past or future
infringement thereof, (iv) rights corresponding thereto throughout the world and
(v) rights to sue for past, present and future infringements thereof.

               "UCC" shall mean the Uniform Commercial Code as in effect from
time to time in any applicable jurisdiction.

               SECTION 1.03. Terms Generally. The definitions in Section 1.02
shall apply equally to both the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words "include", "includes" and
"including" shall be deemed to be followed by the phrase

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                                      -10-

               "without limitation". All references herein to Articles and
Sections shall be deemed references to Articles and Sections of this Agreement
unless the context shall otherwise require.

                                   ARTICLE II

                                    REMEDIES

               SECTION 2.01. Security Interests.

               (a) Each of the Companies and the Administrative Agent, on behalf
of the Credit Agreement Parties, hereby acknowledges that (i) the Indenture
Trustee, for the benefit of the Senior Note Holders, has been granted a security
interest in and lien upon the Senior Note Collateral pursuant to the Senior Note
Security Documents in effect on the date hereof, true and complete copies of
which have been made available to the Administrative Agent, (ii) upon the sale
or other disposition of the Senior Note Collateral pursuant to any of the Senior
Note Security Documents, the Indenture Trustee and the Senior Note Holders shall
be entitled to 100% of the proceeds of such sale or disposition, (iii) the
Administrative Agent and the Credit Agreement Parties have no claim or interest
in such Senior Note Collateral or the proceeds thereof, and (iv) the provisions
of this Agreement shall not restrict the Indenture Trustee and the Senior Note
Holders from commencing Enforcement in respect of any Collateral to which it is
entitled (other than the Shared Collateral).

               (b) Each of the Companies and the Indenture Trustee, on behalf of
the Senior Note Holders, hereby acknowledges that (i) the Administrative Agent,
for the benefit of the Credit Agreement Parties, has been granted a security
interest in and lien upon the Credit Agreement Collateral pursuant to the Credit
Agreement Security Documents in effect on the date hereof, true and complete
copies of which have been made available to the Indenture Trustee, (ii) upon the
sale or other disposition of the Credit Agreement Collateral pursuant to any of
the Credit Agreement Security Documents, the Administrative Agent and the Credit
Agreement Parties shall be entitled to 100% of the proceeds of such sale or
disposition, (iii) the Indenture Trustee and the Senior Note Holders have no
claim or interest in such Credit Agreement Collateral or the proceeds thereof,
and (iv) the provisions of this Agreement shall not restrict the Administrative
Agent and the Credit Agreement Parties from commencing Enforcement in respect of
any Collateral to which it is entitled (other than the Shared Collateral).

               SECTION 2.02. Access; Use of Intellectual Property.

               (a) For up to 210 days following the issuance of any Enforcement
Notice, the Administrative Agent, the Indenture Trustee and the Companies agree
that the Administrative Agent may, at its option, without charge, at any time
(i) enter upon any or all of any of the Companies' premises, either leased or
owned, in order to inspect, collect, remove, sell or otherwise dispose of the
Credit Agreement Collateral to which it is entitled, such right to include,
without limiting the generality of the foregoing, the right to conduct one or
more private sales or auctions thereon, and (ii) use the Senior Note Collateral
to the extent necessary or advisable to complete the manufacture of the
Inventory, collect the Accounts and remove, sell or otherwise dispose of the
Credit Agreement Collateral to which it is entitled; provided,

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                                      -11-

however, that access to Senior Note Collateral consisting of blast furnaces or
electric arc furnaces and related melting facilities ("Melt Shops") shall be
limited to 90 days following the issuance of an Enforcement Notice, and provided
further, that the Administrative Agent shall compensate the Indenture Trustee in
cash for any damage to the Senior Note Collateral used by the Administrative
Agent in connection with its entry into and use of the Senior Note Collateral as
contemplated by this Section 2.02 and shall pay, as incurred, all of the costs
and expenses relating to the provision of access to the Senior Note Collateral
as contemplated herein, and provided, further, that upon the request of the
Administrative Agent, the Companies shall provide evidence of all such costs and
expenses to the Administrative Agent. During such 210-day period, if the
Administrative Agent has entered upon any Company's premises as provided herein,
the Indenture Trustee and its designees shall have unrestricted access to the
Senior Note Collateral for the purpose of evaluating the Senior Note Collateral
and showing it to potential purchasers and preparing such for sale or selling
such Senior Note Collateral; provided, however, that, without creating any right
hereunder in favor of any Company, the access of the Indenture Trustee and its
designees shall not unreasonably and materially interfere with the access of the
Administrative Agent and use of such Company's premises and use of the Senior
Note Collateral to the extent necessary or advisable to complete the manufacture
of the Inventory, collect the Accounts and to sell or otherwise dispose of the
Credit Agreement Collateral to which it is entitled.

               (b) Following the issuance of any Enforcement Notice, the
Administrative Agent, the Indenture Trustee and the Companies agree that the
Administrative Agent, the Indenture Trustee and the Companies shall have a
perpetual license to use the Intellectual Property, without charge, to the
extent necessary or advisable to conduct the Borrower's business in the ordinary
course consistent with past practice and to sell or otherwise dispose of the
Collateral to which it is entitled and any sale of the Intellectual Property
shall be made subject to such perpetual license. To the extent any Company, the
Administrative Agent or the Indenture Trustee has elected to use the
Intellectual Property, such use by such person and its designees shall not
unreasonably and materially interfere with the use by the Administrative Agent
or the Indenture Trustee of the Intellectual Property to the extent necessary or
advisable to complete the manufacture of the Inventory, collect the Accounts and
to sell or otherwise dispose of the Credit Agreement Collateral. If the
Administrative Agent fails to timely pay the costs and expenses pursuant to this
Section 2.02, its right of access hereunder shall terminate.

                                   ARTICLE III

                    EXPENSES AND INDEMNIFICATION BY COMPANIES

               By countersigning this Agreement, the Companies agree (i) to
reimburse each of the Administrative Agent and the Indenture Trustee, on demand,
for any reasonable expenses incurred by such person, including reasonable (1)
counsel fees, (2) other charges and (3) disbursements and compensation of
agents, arising out of, in any way connected with, or as a result of, the
execution or delivery of this Agreement or any of the Security Documents or any
agreement or instrument contemplated hereby or thereby or the performance by the
parties hereto or thereto of their respective obligations hereunder or
thereunder or in connection with the enforcement or protection of the rights of
the Administrative Agent, the Indenture Trustee and the Secured Parties under
this Agreement and the Security Documents and (ii) to

<PAGE>

                                      -12-

indemnify and hold harmless the Administrative Agent and the Indenture Trustee
and each of their respective directors, officers, employees and agents (each
such person being called an "Indemnitee"), on demand, from and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which
may be imposed on, incurred by or asserted against the Administrative Agent and
the Indenture Trustee in their respective capacities, or the Majority Holders,
or any of them in any way relating to or arising out of this Agreement or the
Security Documents or any action taken or omitted by them under this Agreement
or the Security Documents; provided, however, that the Companies shall not be
liable to any Indemnitee for any such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements to the
extent they have resulted from the gross negligence or willful misconduct of
such Indemnitee.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

               Each of the Administrative Agent and the Indenture Trustee
represents and warrants to the other parties hereto that (i) the execution,
delivery and performance of this Agreement (1) have been duly authorized by all
requisite corporate action on its part and (2) will not contravene any provision
of its charter or by-laws or any order of any court or other Governmental
Authority having applicability to it or any applicable law and (ii) this
Agreement has been duly executed and delivered by it and constitutes its legal,
valid and binding obligation.

                                    ARTICLE V

                            APPROVAL BY THE COMPANIES

               By executing this Agreement, each of the Companies agrees to be
bound by the provisions hereof as they relate to the relative rights of the
Secured Parties; provided, however, that solely as between each of the
Companies, on the one hand, and the Secured Parties, on the other hand, nothing
in this Agreement shall amend, modify, change or supersede the terms of any
Security Document, as between each Secured Party and Company signatory thereto,
and in the event of any such conflict or inconsistency between the terms of this
Agreement and such Security Document, such Security Document shall govern the
relationship between such Secured Party and Company. Each Company further agrees
that except as expressly provided herein (i) the terms of this Agreement shall
not give such Company any substantive rights against the Secured Parties, and
(ii) if any Secured Party shall enforce its rights or remedies in violation of
the terms of this Agreement, such Company shall neither raise such violation as
a defense to the enforcement by any other Secured party under its respective
Security Documents, nor assert such violation as a counterclaim or basis for
setoff or recoupment against any Secured Party.

                                   ARTICLE VI

                                  MISCELLANEOUS

<PAGE>

                                      -13-

               SECTION 6.01. Further Assurances, etc. Each party hereto shall
execute and deliver such other documents and instruments, in form and substance
reasonably satisfactory to the other parties hereto, and shall take such other
actions, in each case as any other party hereto may reasonably have requested
(at the cost and expense of the Companies) to effectuate and carry out the
provisions of this Agreement, including by recording or filing in such places as
the requesting party may deem reasonably necessary, this Agreement or such other
documents or instruments

               SECTION 6.02. Successors and Assigns. (a) This Agreement shall be
binding on and inure to the benefit of each of the Secured Parties and their
respective successors and permitted assigns (including any assignee of any
Lender in accordance with the Credit Agreement and the holders from time to time
of the Senior Notes); provided, however, that, except as provided in the next
sentence, no Credit Agreement Party or Senior Note Creditor may assign its
rights or obligations hereunder. The rights and obligations of any Credit
Agreement Party or Senior Note Creditor under this Agreement shall be assigned
automatically, without the need for the execution of any document or any other
action, to, and the terms "Credit Agreement Party" or "Senior Note Creditor" as
used in this Agreement shall include, any assignee, transferee or successor of
such Secured Party under the Credit Agreement or the Indenture, as the case may
be, in accordance with the terms of and upon the effectiveness of an assignment
pursuant to Section 19 of the Credit Agreement or a transfer of Senior Notes
pursuant to Section 2.6 of the Indenture, provided in the event that the Secured
Party under the Credit Agreement is a trustee for parties to a securitization or
similar structured financing which has refinanced the Credit Agreement, such
trustees shall have provided reasonable evidence of means of payment acceptable
to the Majority Holders of the required costs and expenses of access provided to
be paid in connection with the provision of access to the Secured Note
Collateral as provided in Section 2.02 hereof and failure to pay such costs and
expenses in a timely manner shall terminate the obligation to provide access to
the property. Except as specifically set forth above and in paragraph (b) below,
this Agreement is not intended to confer any benefit on, or create any
obligation of any Secured Party to, any of the Companies or any third party.

               (b) The provisions of Section 7.03 (and the provisions of this
paragraph (b) and clause (c) of Section 9.06) are intended to confer a benefit
upon the Companies shall be enforceable by the Companies.

               SECTION 6.03. Notices. All notices and other communications
provided for herein shall (except as otherwise expressly permitted herein) be in
writing and given as provided in the Credit Agreement or the Indenture. All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt if delivered by hand or overnight courier service or sent by telecopy
or on the date five (5) Business Days after dispatch by certified or registered
mail if mailed, in each case delivered, sent or mailed (properly addressed) to
such party at the address set forth beneath its signature hereto or in
accordance with the latest unrevoked direction from such party given in
accordance with this Section 9.03.

               SECTION 6.04. Termination. (a) This Agreement shall terminate
automatically upon the indefeasible payment in full of the Outstanding Credit
Agreement Obligations or the Outstanding Senior Note Obligations; this Section
6.04, Article III of this Agreement shall

<PAGE>

survive, and remain operative and in full force and effect, regardless of the
termination of this Agreement.

               SECTION 6.05. Applicable Law. THIS AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

               SECTION 6.06. Modification of Agreement. No modification or
amendment of any provision of this Agreement shall in any event be effective
unless the same shall be in writing and signed by or on behalf of the Required
Lenders and the Majority Noteholders. No waiver of any provision of this
Agreement and no consent to any departure by any party hereto from the
provisions hereof shall be effective unless such waiver or consent shall be set
forth in a written instrument executed by the party against which it is sought
to be enforced, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. No notice to or demand on
any party hereto in any case shall entitle such party to any other or further
notice or demand in the same, similar or other circumstances.

               SECTION 6.07. Waiver of Rights. Neither any failure nor any delay
on the part of any party hereto in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, and a single or partial exercise
thereof shall not preclude any other or further exercise or the exercise of any
other right, power or privilege.

               SECTION 6.08. Severability. In case any one or more of the
provisions contained in this Agreement should be invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby. The parties hereto shall endeavor in good faith negotiations
to replace the invalid, illegal or unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of
the invalid, illegal or unenforceable provisions.

               SECTION 6.09. Counterparts. This Agreement may be executed in two
or more counterparts, each of which shall constitute an original, but all of
which, when taken together, shall constitute but one instrument. Delivery of an
executed counterpart of a signature page to this Agreement by facsimile
transmission shall be as effective as delivery of a manually executed
counterpart of this Agreement.

               SECTION 6.10. Section Headings. The Article and Section headings
used herein are for convenience of reference only and are not to affect the
construction of or be taken into consideration in interpreting this Agreement.

               SECTION 6.11. Complete Agreement. This Agreement constitutes the
entire agreement between the parties hereto with respect to the subject matter
hereof and supersedes all prior representations, negotiations, writings,
memoranda and agreements. To the extent any provision of this Agreement
conflicts with any other Senior Credit Document, the provisions of this
Agreement shall be controlling, except as otherwise required by law.

<PAGE>

                  IN WITNESS WHEREOF, the Administrative Agent and the Indenture
Trustee have caused this Intercreditor Agreement to be duly executed by their
duly authorized officers, all as of the day and year first above written.

                                           LASALLE BANK NATIONAL ASSOCIATION, as
                                           Indenture Trustee

                                           By: /s/ Andrea Matwyshyn
                                               --------------------------------
                                           Name:  Andrea Matwyshyn
                                           Title: Power of Attorney

                                           Address:

                                           FLEET CAPITAL CORPORATION,
                                           as Administrative Agent

                                           By: /s/ Joseph W. Johnson, Jr.
                                               ---------------------------------
                                           Name: Joseph W. Johnson, Jr.
                                           Title: Vice President

                                           Address: One Federal Street
                                                    Boston, MA 02110

<PAGE>

                                                               Signature Page to
                                                         Intercreditor Agreement

                                          REPUBLIC ENGINEERED PRODUCTS LLC

                                          By: /s/ Justin Hillenbrand
                                              ---------------------------------
                                          Name:  Justin Hillenbrand
                                          Title: Vice President

                                          Address: 3770 Embassy Parkway
                                                   Akron, Ohio 44333

                                          BLUE BAR, L.P.
                                          By:  Blue Steel Corporation
                                               Its General Partner

                                          By: /s/ Justin Hillenbrand
                                              ---------------------------------
                                          Name:  Justin Hillenbrand
                                          Title: Vice President

                                          Address: 3770 Embassy Parkway
                                                   Akron, Ohio 44333

                                          BLUE STEEL CAPITAL CORP.

                                          By: /s/ Justin Hillenbrand
                                              ---------------------------------
                                          Name:  Justin Hillenbrand
                                          Title: Vice Preisent

                                          Address: 3770 Embassy Parkway
                                                   Akron, Ohio 44333

                                          N&T RAILWAY COMPANY LLC
                                          By:  Republic Engineered Products LLC
                                               Its Sole Member

                                          By: /s/ Justin Hillenbrand
                                              ---------------------------------
                                          Name:  Justin Hillenbrand
                                          Title: Vice President

                                          Address: 3770 Embassy Parkway
                                                   Akron, Ohio 44333<PAGE>

                                                                     Exhibit 4.7

================================================================================

                         MORTGAGE, ASSIGNMENT OF LEASES,
                      SECURITY AGREEMENT AND FIXTURE FILING

                                       BY

                        REPUBLIC ENGINEERED PRODUCTS LLC
                                    Mortgagor

                                       TO

                       LASALLE BANK NATIONAL ASSOCIATION,
                                   Mortgagee;

                Securing Principal Indebtedness of: $80,000,000;

                            Relating to Premises in:

                               LORAIN COUNTY, OHIO

                          Dated as of: August 16, 2002

================================================================================

                                After recording,
                                please return to:

                    Akin, Gump, Strauss, Hauer & Feld, L.L.P.
                               590 Madison Avenue
                            New York, New York 10022
                          Attention: Stephen Kuhn, Esq.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                         <C>
ARTICLE I        WARRANTIES, REPRESENTATIONS AND COVENANTS OF
                 MORTGAGOR ................................................   6
SECTION 1.1.     Payment and Performance ..................................   6
SECTION 1.2.     Authority and Validity ...................................   6
SECTION 1.3.     Good Title. ..............................................   6
SECTION 1.4.     Recording Documentation To Assure Security Interest;
                 Fees and Expenses. .......................................   7
SECTION 1.5.     Payment of Taxes, Insurance Premiums, Assessments;
                 Compliance with Law and Insurance Requirements. ..........   8
SECTION 1.6.     Certain Tax Law Changes ..................................  10
SECTION 1.7.     Required Insurance Policies. .............................  10
SECTION 1.8.     Failure To Perform Covenants or To Make Certain Payments .  13
SECTION 1.9.     Inspection ...............................................  13
SECTION 1.10.    Mortgagor To Maintain Improvements .......................  13
SECTION 1.11.    Mortgagor's Obligations with Respect to Leases. ..........  14
SECTION 1.12.    Transfer Restrictions ....................................  16
SECTION 1.13.    Destruction; Condemnation. ...............................  17
SECTION 1.14.    Alterations ..............................................  17
SECTION 1.15.    Compliance with Applicable Laws and Regulations ..........  18
SECTION 1.16.    Asbestos .................................................  20
SECTION 1.17.    Books and Records; Reports ...............................  21
SECTION 1.18.    No Claims Against Mortgagee ..............................  21
SECTION 1.19.    Utility Services .........................................  21

ARTICLE II       ASSIGNMENT OF RENTS; SECURITY AGREEMENT ..................  22
SECTION 2.1.     Assignment of Leases, Rents, Issues and Profits. .........  22
SECTION 2.2.     Security Interest in Personal Property. ..................  24

ARTICLE III      EVENTS OF DEFAULT AND REMEDIES ...........................  24
SECTION 3.1.     Remedies in Case of an Occurrence of an Event of Default .  24
SECTION 3.2.     Sale of Mortgaged Property If Event of Default Occurs;
                 Proceeds of Sale. ........................................  26
SECTION 3.3.     Additional Remedies in Case of an Event of Default. ......  27
SECTION 3.4.     Legal Proceedings After an Event of Default. .............  28
SECTION 3.5.     Remedies Not Exclusive ...................................  28

ARTICLE IV       CERTAIN DEFINITIONS ......................................  29

ARTICLE V        MISCELLANEOUS ............................................  30
SECTION 5.1.     Severability .............................................  30
SECTION 5.2.     Notices ..................................................  30
SECTION 5.3.     Covenants To Run with the Land ...........................  30
SECTION 5.4.     Captions; Gender and Number ..............................  31
SECTION 5.5.     Limitation on Interest Payable ...........................  31
SECTION 5.6.     Indemnification; Reimbursement ...........................  31
SECTION 5.7.     Choice of Law ............................................  32
</TABLE>

                                        i

<PAGE>

<TABLE>
<S>                                                                         <C>
SECTION 5.8.    Changes in Writing .......................................   32
SECTION 5.9.    No Merger ................................................   32
SECTION 5.10.   Concerning Mortgagee. ....................................   32
SECTION 5.11.   Mortgagee's Right To Sever Indebtedness. .................   33
SECTION 5.12.   Waiver of Stay. ..........................................   34
SECTION 5.13.   No Credit for Payment of Taxes or Impositions ............   34
SECTION 5.14.   Stamp and Other Taxes ....................................   34
SECTION 5.15.   Estoppel Certificates ....................................   34
SECTION 5.16.   Additional Security ......................................   35
SECTION 5.17.   Release ..................................................   35
SECTION 5.18.   Expenses of Collection ...................................   35
SECTION 5.19.   Business Days ............................................   35
</TABLE>

                                       ii

<PAGE>

                         MORTGAGE, ASSIGNMENT OF LEASES,
                      SECURITY AGREEMENT AND FIXTURE FILING

               MORTGAGE, ASSIGNMENT OF LEASES, SECURITY AGREEMENT AND FIXTURE
FILING ("Mortgage"), dated as of August 16, 2002 made by REPUBLIC ENGINEERED
PRODUCTS LLC, a Delaware limited liability company having an office at 3770
Embassy Parkway, Akron, Ohio 44333, as mortgagor, assignor and debtor (together
with any successors or assigns, "Mortgagor"), in favor of LASALLE BANK NATIONAL
ASSOCIATION, a national banking association having an office at 135 S. LaSalle,
Suite 1960, Chicago, Illinois 60603, as trustee and collateral agent pursuant to
the Indenture (as hereinafter defined), as mortgagee, assignee and secured party
(in such capacity and together with any successors or assigns in such capacity,
"Mortgagee").

                                R E C I T A L S :

          1.   Mortgagor is the owner of the land described in Schedule A
annexed hereto and made a part hereof and all the improvements situated thereon.

          2.   Republic Engineered Products LLC ("Republic Engineered") and Blue
Steel Capital Corp. ("Blue Steel," together with Republic Engineered, the
"Issuers"), Mortgagor, Mortgagee and certain other affiliates of the Issuers
have, in connection with the execution and delivery of this Mortgage, entered
into a certain indenture (as amended, amended and restated, supplemented or
otherwise modified from time to time, the "Indenture"; capitalized terms used
herein and not otherwise defined shall have the meanings assigned thereto in the
Indenture), dated as of the date hereof, pursuant to which the Issuers are
issuing their 10% senior secured notes due 2009 (the "Notes") in the aggregate
principal amount of $80,000,000.00.

          3.   This Mortgage is given by Mortgagor in favor of Mortgagee to
secure the payment and performance in full when due, whether at stated maturity,
by acceleration or otherwise (including, without limitation, the payment of
interest and other amounts which would accrue and become due but for the filing
of a petition in bankruptcy or the operation of the automatic stay under Section
362(a) of the Bankruptcy Code, 11 U.S.C. ss. 362(a)), of (i) all obligations of
the Issuers now or hereafter existing under or in respect of the Indenture and
the Notes (including, without limitation, the obligations of the Issuers to pay
principal of, premium, if any, and interest on the Notes when due and payable)
and all other charges, fees, premiums, indemnities and other amounts due or to
become due under or in connection with the Indenture and the Notes and (ii)
without duplication of the amounts described in clause (i), all obligations,
indebtedness and liabilities of Mortgagor pursuant to the terms of this
Mortgage, in each case whether now existing or hereafter arising, and whether in
the regular course of business or otherwise (collectively, the "Secured
Obligations"). The final maturity date of the Secured Obligations is August 16,
2009.

          4.   On April 2, 2001, Republic Technologies International ("RTI") and
certain of its subsidiaries commenced cases in the United States Bankruptcy
Court for the Northern District of Ohio, Eastern Division (the "Bankruptcy
Court"), under Chapter 11 of the

<PAGE>

Bankruptcy Code. On the date hereof, Republic Engineered is acquiring a
substantial portion of the assets of RTI and its subsidiaries pursuant to the
following:

               (i)  an Asset Purchase Agreement, dated June 7, 2002 (as amended,
supplemented or otherwise modified from time to time, the "RTI Asset Purchase
Agreement"), among RTI and certain of its subsidiaries, and Republic Engineered;
and

               (ii) an order of the Bankruptcy Court, dated July 23, 2002 (the
"Sale Order"), entitled "Amended Order Superseding Order (A) Approving Sale of
Certain Assets Free and Clear Of Liens And Stamp or Transfer Taxes Pursuant to
Bankruptcy Code Sections 363(f) and 1146(c), (B) Approving Assumption and
Assignment of Executory Contracts and Unexpired Leases Subject to the Sale
Pursuant to Bankruptcy Code Section 364 and, (C) Approving Settlement Agreement
with USWA, and (D) Waiving the Requirements of Local Bankruptcy Rule 9013-1(a)
and the Ten Day Stay Period Provided by Bankruptcy Rule 6004(g), to which is
attached and made a part thereof the Stipulation Settling Disputes between
Republic Technologies International, LLC, RT Acquisition LLC, Fleet Capital
Corporation, as Agent, and the Majority Noteholders of Senior Secured 13-3/4%
Notes (the "RTI Notes"), dated July 11, 2002 (the "Stipulation").

          Pursuant to the Sale Order, and in exchange for the issuance of the
Notes, all Liens on the property and assets to be purchased pursuant to the RTI
Asset Purchase Agreement and the Sale Order which constitutes Collateral
securing the RTI Notes ("Specified Noteholder Collateral") that is subject to
the jurisdiction of the Bankruptcy Court are to be released at the time of the
purchase and the Notes will replace the RTI Notes and are to be secured by a
first lien on the Specified Noteholder Collateral which includes the Mortgaged
Property as defined hereinbelow, certain personal property collateral and the
equity interests in Republic Engineered and its Subsidiaries, all of which
Collateral (other than the equity interests in the Republic Engineered) was part
of the collateral securing the RTI Notes prior to the acquisition contemplated
by the RTI Asset Purchase Agreement and the Sale Order.

          Mortgagor has duly authorized the execution and delivery of this
Mortgage and the other Security Documents pursuant to which Mortgagor, Parent
and certain Subsidiaries, as applicable, are granting the aforementioned new
Liens in favor of the Trustee and/or the Collateral Agent, as the case may be,
in the Specified Noteholder Collateral.

          The rights, claims and interests of the RTI Notes, the holders thereof
and the relevant Indenture Trustee as to the collateral of the RTI Notes that
are not being purchased by Republic Engineered as purchaser pursuant to the RTI
Asset Purchase Agreement and Sale Order shall not be subject to this Mortgage in
any respect and the rights of the holders of the RTI Notes and the Indenture
Trustee are preserved and are not adversely affected hereby.

          This Mortgage is meant to supercede any mortgage instrument, deed of
trust, assignment of leases, security agreement or fixture filing relating to
the same assets.

                                       2

<PAGE>

                         G R A N T I N G  C L A U S E S :

          For and in consideration of the sum of Ten Dollars ($10.00) and other
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Mortgagor hereby grants, mortgages, bargains, sells, assigns and
conveys to Mortgagee and hereby grants to Mortgagee a security interest in and
mortgage lien upon, all Mortgagor's right, title and interest in and to the
following property whether now owned or held or hereafter acquired
(collectively, the "Mortgaged Property"):

          A.   Any and all present estates or interests of Mortgagor in the land
described in Schedule A annexed hereto, together with all Mortgagor's
reversionary rights in and to any and all lots, parcels, alterations,
partitions, easements, rights-of-way, sidewalks, strips and gores of land,
drives, roads, curbs, streets, lanes, ways, alleys, passages, passageways, sewer
rights, waters, woods, watercourses, water rights, mineral, gas and oil rights,
power, air, light and other rights, estates, titles, interests, privileges,
liberties, servitudes, licenses, tenements, hereditaments and appurtenances
whatsoever, in any way belonging, relating or appertaining thereto, or any part
thereof, or which hereafter shall in any way belong, relate or be appurtenant
thereto (collectively, the "Land");

          B.   Any and all estates or interests of Mortgagor in the buildings,
structures and other improvements and any and all Alterations (as hereinafter
defined) now or hereafter located or erected on the Land, including, without
limitation, attachments, walks and ways (collectively, the "Improvements";
together with the Land, the "Premises");

          C.   Any and all interests of Mortgagor in all permits, licenses,
franchises, certificates, consents, approvals and authorizations, however
characterized, issued or in any way furnished in connection with the Premises,
whether necessary or not for the operation and use of the Premises, including,
without limitation, building permits, certificates of occupancy, environmental
certificates, industrial permits, or licenses and certificates of operation;
provided, however, that Mortgaged Property shall not include any items of
property described in this Granting Clause C to the extent that Mortgagor is
expressly prohibited from granting a Lien thereon or applicable law provides for
the involuntary forfeiture of the property in the event that a Lien is granted
thereon without the consent of the appropriate Person, governmental authority,
agency or instrumentality; provided, further, that in the event of the
termination or elimination of any prohibition or requirement for any consent
contained in any law, rule, regulation, license, franchise, certificate,
consent, approval, authorization or other document, or upon the granting of any
consent, the items of property so excluded from the definition of Mortgaged
Property by virtue of the immediately preceding proviso shall (without any act
or delivery by any Person) constitute Mortgaged Property hereunder;

          D.   Any and all interest of Mortgagor in all "equipment", as such
term is defined in Section 9-102(a)(33) of the Uniform Commercial Code (as in
effect in the state in which the Premises are located, the "UCC"), located at
the Premises, whether or not affixed to the Premises and whether now owned or
hereafter acquired, and shall specifically include, without limitation, (i)
goods which would be considered a "fixture" under Section 9-102(a)(41) of the
UCC or otherwise would be considered a "fixture" or a part of the Premises under
applicable law, except for Real Estate Fixtures, (ii) all machinery, facilities,
installations,

                                       3

<PAGE>

apparatus, equipment, office machinery, electronic data processing equipment,
computers and computer hardware and software including, without limitation,
software embedded in the equipment (whether owned or licensed), all indoor or
outdoor furniture, tools, materials, automotive equipment, motor vehicles,
manufacturing, storage and handling equipment, overhead cranes, cutting and
bending machines and other equipment for the fabrication of steel bars, rods and
wire products, furnaces, electric arc furnaces, ladle arc furnaces, billet
mills, reheat furnaces, rolling mills, conveyors, coilers, cooling beds and all
other equipment of any kind or nature and owned by Mortgagor or in which
Mortgagor may have any interest (but only to the extent of such interest), (iii)
all modifications, renewals, improvements, alterations, repairs, substitutions,
attachments, additions, accessions and other property now or hereafter affixed
thereto or used in connection therewith and (iv) all replacements and all parts
therefor (collectively, the "Equipment");

          E.   Any and all interest of Mortgagor in all "equipment", as such
term is defined in Section 9-102(a)(33) of the UCC and whether now owned or
hereafter acquired, which is (i) affixed to the Premises, (ii) considered a
fixture or a part of the Premises under applicable law and (iii) integral to the
occupancy or customarily used by occupants in connection with the occupancy of
the Land or the operation of the Improvements thereon as such, as opposed to
manufacturing or other business operations conducted therein or therefrom and,
in any event, shall include, without limitation, all switchboards, utility
systems, sprinkler and alarm systems or other fire prevention or extinguishing
apparatus and materials, HVAC equipment, boilers, oil boilers,
telecommunications equipment, refrigeration, electronic monitoring, water or
lighting systems, power, sanitation, waste removal, pollution abatement or
control, elevators, window cleaning, maintenance or other systems or equipment,
appliances or supplies, all heating apparatus, generators, plumbing, lighting
and gas fixtures, laundry, ventilating and air conditioning equipment, all
awnings, blinds, screens, storm sash, pumping equipment, electrical equipment,
including transformers, radiators and piping, coal stokers, plumbing and
bathroom fixtures, wash-tubs, sinks, stoves, ranges, window shades, motors,
generators, dynamos, kitchen cabinets, incinerators, plants and shrubbery and
all other articles used or useful in connection with the use, operation,
maintenance or repair of any part of the Premises, together with any and all
modifications, renewals, improvements, alterations, repairs, substitutions,
attachments, additions, accessions and other property now or hereafter affixed
thereto or used in connection therewith, all replacements and all parts
therefor, and all substitutes for any of the foregoing (collectively, the "Real
Estate Fixtures");

          F.   All Mortgagor's right, title and interest, as landlord,
franchisor, licensor or grantor, in all leases and subleases of space,
tenancies, lettings, franchise agreements, licenses, occupancy or concession
agreements, all books and records which contain payments under the leases,
contracts and other agreements, written or otherwise, now existing or hereafter
entered into relating in any manner to the Premises, the Equipment or the Real
Estate Fixtures and any and all amendments, modifications, supplements and
renewals of any thereof (each such lease, license or agreement, together with
any such amendment, modification, supplement or renewal, a "Lease"), whether now
in effect or hereafter coming into effect including, without limitation, all
rents, additional rents, rental income, receipts, management fees payable by
tenants, cash, guarantees, letters of credit, bonds, sureties or securities
deposited thereunder to secure performance of the lessee's, franchisee's,
licensee's or obligee's obligations thereunder, revenues, earnings, issues,
profits and income, advance rental payments, payments incident to

                                       4

<PAGE>

assignment, sublease or surrender of a Lease, claims for forfeited deposits,
claims for damages and awards, now due or hereafter to become due, with respect
to any Lease (collectively, the "Rents");

          G.   All general intangibles and contract rights relating to the
Premises, the Equipment or the Real Estate Fixtures and all reserves, deferred
payments, deposits, refunds and claims of every kind or character relating
thereto (collectively, the "Contract Rights");

          H.   All surveys, title insurance policies, drawings, plans,
specifications, construction contracts, file materials, operating and
maintenance records, catalogues, tenant lists, correspondence, advertising
materials, operating manuals, warranties, guaranties, appraisals, studies and
data relating to the Premises, the Equipment or the Real Estate Fixtures or the
construction of any Alteration or the maintenance of any Permit (as hereinafter
defined);

          I.   All the estate, right, title, interest, claim, and demand
whatsoever, of Mortgagor, in law, equity, or otherwise howsoever, of, in, and to
the same and every part of the foregoing; and

          J.   All proceeds of the conversion, voluntary or involuntary, of any
of the foregoing into cash or liquidated claims, including, without limitation,
proceeds of insurance (and any unearned premiums thereon), condemnation or
eminent domain, judgment or other awards or payments with respect thereto or
settlement in lieu thereof (including, without limitation, any Net Proceeds or
Net Award (each as hereinafter defined)), including, without limitation,
interest thereon (collectively, "Proceeds").

          TO HAVE AND TO HOLD the Mortgaged Property unto Mortgagee and
Mortgagee's successors and assigns forever, for the purpose of securing the
payment and performance of the Secured Obligations.

                               C O V E N A N T S :

          Mortgagor warrants, represents and covenants to and for the benefit of
Mortgagee as follows:

                                       5

<PAGE>

                                   ARTICLE I

                         WARRANTIES, REPRESENTATIONS AND
                             COVENANTS OF MORTGAGOR

          SECTION 1.1. Payment and Performance. Mortgagor shall pay as and when
the same shall become due, whether at its stated maturity, by acceleration or
otherwise, each and every amount payable by Mortgagor in respect of the Secured
Obligations and shall perform, at or prior to the time such performance shall be
due, all other obligations of Mortgagor which constitute Secured Obligations.

          SECTION 1.2. Authority and Validity. Mortgagor represents, warrants
and covenants that (i) Mortgagor is duly authorized to execute and deliver this
Mortgage, the Notes, the Indenture and the other documents evidencing or
securing the Secured Obligations (this Mortgage, the Notes, the Indenture and
such other documents, collectively, the "Indenture Documents"), and all
corporate and governmental actions, consents, authorizations and approvals
necessary or required therefor have been duly and effectively taken or obtained,
(ii) this Mortgage and the other Indenture Documents are valid, binding and
enforceable obligations of Mortgagor, except as the enforceability of such
obligations may be limited by bankruptcy, insolvency, reorganization, moratorium
and similar laws relating to or affecting creditors' rights generally or by
general equitable principles (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and (iii) Mortgagor has the
requisite organizational power and lawful authority to execute and deliver this
Mortgage and the other Indenture Documents and to mortgage and grant a security
interest in the Mortgaged Property as contemplated herein.

          SECTION 1.3. Good Title.

               1.3.1 Mortgagor represents, warrants and covenants that (i)
Mortgagor has (a) good and legal title to the Premises, (b) valid leasehold
interest to the landlord's interest and estate under or in respect of the
Leases, and (c) good title to the interest it purports to own in and to each of
the Permits, the Equipment, the Real Estate Fixtures and the Contract Rights, in
each case subject to no Lien (as that term is defined in the Indenture), except
for those Liens identified on Schedule B annexed hereto (collectively, "Prior
Liens") and the Permitted Collateral Liens (as that term is defined in the
Indenture), (ii) Mortgagor will keep in effect all material rights and
appurtenances to or that constitute a part of the Mortgaged Property which are
necessary for the conduct of Mortgagor's business at the Mortgaged Property,
(iii) Mortgagor will protect, preserve and defend its interest in the Mortgaged
Property and title thereto, (iv) Mortgagor will comply in all material respects
with each of the terms, conditions and provisions of any obligation of Mortgagor
which is secured by the Mortgaged Property or the noncompliance with which could
reasonably be expected to result in the imposition of a Lien on the Mortgaged
Property, (v) Mortgagor will appear and defend the Lien and security interests
created and evidenced hereby and the validity and priority of this Mortgage in
any action or proceeding affecting or purporting to affect the Mortgaged
Property or any of the rights of Mortgagee hereunder, (vi) this Mortgage creates
and constitutes a valid and enforceable Lien on the Mortgaged Property, except
as the enforceability of such obligations may be limited by bankruptcy,
insolvency, reorganization, moratorium and similar laws relating to or affecting

                                       6

<PAGE>

creditors' rights generally or by general equitable principles (regardless of
whether such enforceability is considered in a proceeding in equity or at law),
and, to the extent any of the Mortgaged Property shall consist of personalty, a
security interest in the Mortgaged Property, which Lien and security interest
are and will be subject only to (a) Prior Liens (but not to extensions or
replacements of Prior Liens) and (b) Permitted Collateral Liens, (vii) there has
been issued and remain in effect (or applied for, as applicable) each and every
certificate of occupancy or use or other material Permit currently required for
the existing use and occupancy by Mortgagor and its tenants of the Premises and
(viii) the Premises comply in all material respects with all local zoning, land
use, setback or other development and use requirements of Governmental
Authorities (as hereinafter defined), except in the case of clause (vii) where
the failure to obtain such Permit and in the case of clause (viii) where the
failure to comply, could not reasonably be expected to have a Material Adverse
Effect. For purposes of this Mortgage, Material Adverse Effect shall mean, as
applicable: (i) material adverse effect in respect of all Real Property of
Mortgagor which serves as Collateral under the Indenture, and (ii) material
adverse effect in respect of the Mortgaged Property.

               1.3.2 Mortgagor, immediately upon obtaining knowledge or
receiving notice, as the case may be, of the pendency of any proceedings for the
eviction of Mortgagor from the Mortgaged Property or any part thereof by
paramount title or otherwise questioning Mortgagor's title to the Mortgaged
Property as warranted in this Mortgage, or of any condition that might
reasonably be expected to give rise to any such proceeding, shall notify
Mortgagee in writing thereof. Mortgagee may participate in such proceedings, and
Mortgagor shall deliver or cause to be delivered to Mortgagee all instruments
reasonably requested by Mortgagee to permit such participation. In any such
proceedings Mortgagee may be represented by counsel reasonably satisfactory to
Mortgagee and the reasonable fees and disbursements of such counsel shall be at
the expense of Mortgagor. If, upon the resolution of such proceedings, Mortgagor
shall suffer a loss of the Mortgaged Property or any part thereof or interest
therein and title insurance proceeds shall be payable to Mortgagor in connection
therewith, such proceeds are hereby assigned to and shall be paid to Mortgagee
to be applied in the same manner as is applicable to proceeds of Asset Sales
pursuant to Section 4.13 of the Indenture.

               1.3.3 Mortgagor represents and warrants that upon and after any
release from the lien of this Mortgage of any Released Mortgaged Property (as
each such term is defined in the Indenture) in accordance with Section 11.3(b)
of the Indenture (i) Mortgagor shall have in effect all material rights and
appurtenances that constitute a part of the Mortgaged Property which are
necessary for the conduct of Mortgagor's business at the Mortgaged Property
including, without limitation, any such rights and appurtenances derived from,
in part or whole, any property to be released and (ii) the Premises will comply
in all material respects with all local zoning, land use, setback or other
development and use requirements of Governmental Authorities.

          SECTION 1.4. Recording Documentation To Assure Security Interest; Fees
and Expenses.

               1.4.1 Mortgagor shall, forthwith after the execution and delivery
of this Mortgage and thereafter, from time to time, cause this Mortgage and any
financing statement, continuation statement or similar instrument relating to
any thereof or to any property intended to

                                       7

<PAGE>

be subject to the Lien of this Mortgage to be filed, registered and recorded in
such manner and in such places as may be required by any present or future law
in order to publish notice of and fully to protect the validity and priority
thereof or the Lien hereof purported to be created upon the Mortgaged Property
and the interest and rights of Mortgagee therein. Mortgagor shall pay or cause
to be paid all taxes and fees incident to such filing, registration and
recording, and all expenses incident to the preparation, execution and
acknowledgement thereof, and of any instrument of further assurance, and all
Federal or state stamp taxes or other taxes, duties and charges arising out of
or in connection with the execution and delivery of such instruments.

               1.4.2 Mortgagor shall, at the sole cost and expense of Mortgagor,
do, execute, acknowledge and deliver all and every such further acts, deeds,
conveyances, mortgages, assignments, notices of assignment, transfers, financing
statements, continuation statements and assurances as Mortgagee shall from time
to time reasonably request to assure, perfect, convey, assign, mortgage,
transfer and confirm unto Mortgagee the property and rights hereby conveyed or
assigned, or which Mortgagor may be or may hereafter become bound to convey or
assign to Mortgagee or which may facilitate the performance of the terms of this
Mortgage or the filing, registering or recording of this Mortgage. In the event
Mortgagor shall fail to execute any instrument required to be executed by
Mortgagor under this subsection 1.4.2 and if such failure shall constitute an
Event of Default, Mortgagee may execute the same as the attorney-in-fact for
Mortgagor, such power of attorney being coupled with an interest and
irrevocable.

          SECTION 1.5. Payment of Taxes, Insurance Premiums, Assessments;
Compliance with Law and Insurance Requirements.

               1.5.1 Unless contested in accordance with the provisions of
subsection 1.5.5 hereof, Mortgagor shall pay and discharge or cause to be paid
and discharged, from time to time before the same shall become delinquent, all
real estate and other taxes, special assessments, levies, permits, inspection
and license fees, all premiums for insurance, all water and sewer rents and
charges, and all other public charges imposed upon or assessed against the
Mortgaged Property or any part thereof or upon the revenues, rents, issues,
income and profits of the Mortgaged Property, including, without limitation,
those arising in respect of the occupancy, use or possession thereof. Except to
the extent contemplated in Section 1.6 hereof, this subsection 1.5.1 shall not
obligate Mortgagor to pay and discharge any charges imposed upon Mortgagee in
respect of franchise, income or other similar taxes.

               1.5.2 Upon the occurrence and during the continuance of an Event
of Default, at the written request of Mortgagee, Mortgagor shall deposit with
Mortgagee, on the first day of each month, an amount reasonably estimated by
Mortgagor to be equal to one-twelfth (1/12th) of the annual taxes, assessments
and other items required to be discharged by Mortgagor under subsection 1.5.1
and amounts reasonably estimated by Mortgagor to be necessary to maintain the
insurance coverages contemplated in Section 1.7. Such amounts shall be held by
Mortgagee without interest to Mortgagor and applied to the payment of each
obligation in respect of which such amounts were deposited, in such order or
priority as Mortgagee shall determine, on or before the date on which such
obligation would become delinquent. If at any time the amounts so deposited by
Mortgagor shall, in Mortgagee's reasonable judgment, be insufficient (when added
to the installments anticipated to be paid thereafter) to discharge any of

                                       8

<PAGE>

such obligations when due, Mortgagor shall, within five (5) Business Days after
demand, deposit with Mortgagee such additional amounts as may be requested by
Mortgagee. Nothing contained in this Section 1.5 shall affect any right or
remedy of Mortgagee under any provision of this Mortgage or of any statute or
rule of law to pay any such amount from its own funds and to add the amount so
paid, together with interest at a rate ("Default Rate") per annum equal to the
highest rate then payable under the Notes to the other amounts outstanding in
respect of the Secured Obligations or relieve Mortgagor of its obligations to
make or provide for the payment of the annual taxes, assessments and other
charges required to be discharged by Mortgagor under subsection 1.5.1. Mortgagor
hereby grants to Mortgagee a security interest in all sums held pursuant to this
subsection 1.5.2 to secure payment and performance of the Secured Obligations.
During the continuance of an Event of Default, Mortgagee may apply all or any
part of the sums held pursuant to this subsection 1.5.2 to payment and
performance of the Secured Obligations in accordance with Section 6.10 of the
Indenture.

               1.5.3 Unless contested in accordance with the provisions of
subsection 1.5.5, Mortgagor shall timely pay, or cause to be paid, all lawful
claims and demands of mechanics, materialmen, laborers, employees, suppliers,
-government agencies administering worker's compensation insurance, old age
pensions and social security benefits and all other claims, judgments, demands
or amounts of any nature which, if unpaid, or not bonded, would be likely to
result in the creation of a Lien on the Mortgaged Property or any part thereof
or the Rents arising therefrom, or which would be likely to result in forfeiture
of all or any part of the Mortgaged Property.

               1.5.4 Mortgagor shall maintain, or cause to be maintained, in
full force and effect, all material permits, certificates, authorizations,
consents, approvals, licenses, franchises or other instruments now or hereafter
required to be maintained by any federal, state, municipal or local government
or quasi-governmental agency or authority (each of the foregoing, a
"Governmental Authority") to operate or use and occupy the Premises, the Real
Estate Fixtures and the Equipment for their intended uses (collectively, the
"Permits"; each, a "Permit"), except where the failure to maintain or cause to
be maintained would not have a Material Adverse Effect. Mortgagor represents
that none of the Permits will be subject to cancellation, forfeiture or any
limitation on the scope thereof solely by virtue of the execution of this
Mortgage or the foreclosure of the Lien hereof. Unless contested in accordance
with the provisions of subsection 1.5.5, Mortgagor shall comply promptly with,
or cause prompt compliance in all material respects with, (i) all requirements
set forth in the Permits and (ii) all requirements of any law, ordinance, rule,
regulation or similar statute or case law (collectively, "Legal Requirements")
of any Governmental Authority applicable to all or any part of the Mortgaged
Property or the condition, use or occupancy of all or any part thereof or any
recorded deed of restriction, declaration, covenant running with the land or
otherwise, now or hereafter in force, except where the failure to comply would
not have a Material Adverse Effect. Mortgagor shall not initiate or consent to
any change in the zoning, subdivision or any other use classification of the
Land, if such action would be likely to diminish the value of the Mortgaged
Property or impair Mortgagee's rights or benefits hereunder, without the prior
written consent of Mortgagee.

               1.5.5 Mortgagor may at its own expense contest the amount or
applicability of any of the obligations described in subsections 1.5.1, 1.5.3
and 1.5.4 by

                                       9

<PAGE>

appropriate legal proceedings, prosecution of which operates to prevent the
collection or enforcement thereof and the sale or forfeiture of the Mortgaged
Property or any part thereof to satisfy such obligations; provided, however,
that in connection with such contest, Mortgagor shall have made provision for
the payment or performance of such contested obligation on Mortgagor's books if
and to the extent required by generally accepted accounting principles, or shall
have deposited with Mortgagee a sum sufficient to pay and discharge such
obligation and Mortgagee's reasonable estimate of all interest and penalties
related thereto. Notwithstanding the foregoing provisions of this subsection
1.5.5, (i) no contest of any such obligations may be pursued by Mortgagor if
such contest would expose Mortgagee or any holder of Notes to any possible
criminal liability or, unless Mortgagor shall have furnished an Additional
Undertaking (as hereinafter defined) therefor reasonably satisfactory to
Mortgagee, any additional civil liability for failure to comply with such
obligations and (ii) if at any time payment or performance of any obligation
contested by Mortgagor pursuant to this subsection 1.5.5 shall become necessary
to prevent the delivery of a tax or similar deed conveying the Mortgaged
Property or any portion thereof because of nonpayment or nonperformance,
Mortgagor shall pay or perform the same in sufficient time to prevent the
delivery of such tax or similar deed.

               1.5.6 Mortgagor shall not in its use and occupancy of the
Premises, the Real Estate Fixtures or the Equipment (including, without
limitation, in the making of any Alteration) take any action that could
reasonably be expected to be the basis for termination, revocation or denial of
any insurance coverage required to be maintained under this Mortgage or that
could reasonably be expected to be the basis for a defense to any claim under
any insurance policy maintained in respect of the Premises, the Real Estate
Fixtures or the Equipment (unless Mortgagor shall have obtained in substitution
for any such insurance an insurance policy or policies complying with the
provisions of Section 1.7 hereof such that there would not result any period of
time during which the insurance coverage required to be maintained hereunder
would not be so maintained) and Mortgagor shall otherwise comply in all respects
with the requirements of any insurer that issues a policy of insurance in
respect of the Premises, the Real Estate Fixtures or the Equipment.

               1.5.7 Mortgagor shall, promptly upon receipt of any written
notice regarding any failure by Mortgagor to pay or discharge any of the
obligations described in subsection 1.5.1, 1.5.3, 1.5.4 or 1.5.6, furnish a copy
of such notice to Mortgagee.

          SECTION 1.6. Certain Tax Law Changes. In the event of the passage
after the date of this Mortgage of any law deducting from the value of real
property, for the purpose of taxation, amounts in respect of any Lien thereon or
changing in any way the laws for the taxation of mortgages or debts secured by
mortgages for state or local purposes or the manner of the collection of any
such taxes, and imposing a new tax, either directly or indirectly, on this
Mortgage, Mortgagee, any Indenture Document to which Mortgagor is a party or any
other document relating to the Secured Obligations, Mortgagor shall promptly pay
to Mortgagee such amount or amounts as may be necessary from time to time to pay
such tax.

          SECTION 1.7. Required Insurance Policies.

               1.7.1 Mortgagor shall maintain in respect of the Premises the
following insurance coverages:

                                       10

<PAGE>

               (i)   Physical hazard insurance on an "all risk" basis covering,
          without limitation, hazards commonly covered by fire and extended
          coverage, lightning, windstorm, civil commotion, hail, riot, strike,
          water damage, sprinkler leakage, collapse and malicious mischief, in
          an amount equal to the full replacement cost of the Improvements, the
          Real Estate Fixtures and all Equipment, with such deductibles as would
          be maintained by a prudent operator of property similar in use and
          configuration to the Premises and located in the locality where the
          Premises are located. "Full replacement cost" means the Cost of
          Construction (as hereinafter defined) to replace the Improvements, the
          Real Estate Fixtures and the Equipment, exclusive of depreciation,
          excavation, foundation and footings, as determined from time to time
          (but not less frequently than once every twelve (12) months) by any
          Person selected by Mortgagor in consultation with its insurance
          company or insurance agent, as appropriate;

               (ii)  Comprehensive general liability insurance against claims
          for bodily injury, death or property damage occurring on, in or about
          the Premises and any adjoining streets, sidewalks and passageways and
          covering any and all claims, including, without limitation, all legal
          liability, subject to customary exclusions, to the extent insurable,
          imposed upon Mortgagee and all court costs and attorneys' fees,
          arising out of or connected with the possession, use, leasing,
          operation or condition of the Premises, with policy limits and
          deductibles in such amounts as would be maintained by a prudent
          operator of property similar in use and configuration to the Premises
          and located in the locality where the Premises are located;

               (iii) Workers' compensation insurance as required by the laws of
          the state in which the Premises are located to protect Mortgagor
          against claims for injuries sustained in the course of employment at
          the Premises;

               (iv)  Explosion insurance in respect of any boilers and similar
          apparatus located on the Premises or comprising any Real Estate
          Fixtures or Equipment, with policy limits and deductibles in such
          amounts as would be maintained by a prudent operator of property
          similar in use and configuration to the Premises, the Real Estate
          Fixtures and the Equipment and located in the locality where the
          Premises, the Real Estate Fixtures and the Equipment are located;

               (v)   To the extent available, during the performance of any
          alterations, renovations, repairs, restorations or construction, broad
          form builders risk insurance on an all-risk completed value basis;

               (vi)  Such other insurance, against such risks and with policy
          limits and deductibles in such amounts as would be maintained by a
          prudent operator of property similar in use and configuration to the
          Premises and located in the locality in which the Premises are
          located; and

               (vii) If the Premises are located in an area designated by the
          Secretary of Housing and Urban Development as an area having special
          flood hazards and

                                       11

<PAGE>

          in which flood insurance has been made available under the National
          Flood Insurance Act of 1968, as amended, flood insurance in such
          amounts as would be maintained by a prudent operator of property
          similar in use and configuration to the Premises and located in the
          locality where the Premises are located.

               1.7.2 Mortgagor may maintain the coverages required by this
Section 1.7 under blanket policies covering the Premises and other locations
owned or operated by Mortgagor if the terms of such blanket policies otherwise
comply with the provisions of this Section 1.7 and contain specific coverage
allocations in respect of the Premises determined in accordance with the
provisions of this Section 1.7. All insurance policies required by this Section
1.7 shall be in form customarily maintained by a prudent operator of property
similar in use and configuration to the Premises and located in the locality in
which the Premises are located. All insurance policies in respect of the
coverages required by subsections 1.7.1(i), 1.7.1(iv), 1.7.1(v) and, if
applicable, 1.7.1(vi) shall be in amounts at least sufficient to prevent
coinsurance liability and all losses thereunder shall be payable to Mortgagee,
as loss payee pursuant to a standard noncontributory New York mortgagee
endorsement or local equivalent, and each such policy shall (i) to the extent
available on a commercially reasonable basis, include effective waivers (whether
under the terms of such policy or otherwise) by the insurer of all claims for
insurance premiums against all loss payees and named insureds other than
Mortgagor and all rights of subrogation against any named insured, and (ii)
provide that any losses thereunder shall be payable notwithstanding (a) any act,
failure to act, negligence of, or violation or breach of warranties,
declarations or conditions contained in such policy by Mortgagor or Mortgagee or
any other named insured or loss payee, (b) the occupation or use of the Premises
for purposes more hazardous than permitted by the terms of the policy, (c) any
foreclosure or other proceeding or notice of sale relating to the Premises, the
Real Estate Fixtures or the Equipment or (d) any change in the title to or
ownership or possession of the Premises, the Real Estate Fixtures or the
Equipment; provided, however, that (with respect to items contemplated in
clauses (c) and (d) above) any notice requirements of the applicable policies
are satisfied. All insurance policies in respect of the coverages required by
subsections 1.7.1(ii) and, if applicable, 1.7.1(vi) and 1.7.1(vii), shall name
Mortgagee as an additional insured. Each policy of insurance required under this
Section 1.7 shall provide that it may not be canceled or otherwise terminated
without at least thirty (30) days' prior written notice to Mortgagee and shall
permit Mortgagee to pay any premium therefor within thirty (30) days after
receipt of any notice stating that such premium has not been paid when due. The
policy or policies of such insurance or certificates of insurance evidencing the
required coverages and all renewals or extensions thereof shall be delivered to
Mortgagee. Prior to the occurrence of an Event of Default, settlement of any
claim in an amount in excess of $500,000 under any of the insurance policies
referred to in this Section 1.7 shall require the prior approval of Mortgagee,
which shall not be unreasonably withheld or delayed, and Mortgagor shall use its
best efforts to cause each such insurance policy to contain a provision to such
effect; provided, however, that Mortgagor shall not settle any such claim which
in Mortgagor's reasonable judgment involves loss in an amount greater than
$250,000 but less than $500,000 unless Mortgagor shall have delivered to
Mortgagee, prior to such settlement, an Officers' Certificate (i) describing the
incident giving rise to such claim, (ii) setting forth the amount of the
proposed settlement in respect of such claim and (iii) stating that such
settlement amount constitutes a reasonable settlement in respect of such claim.
During the continuance of any Event of Default, Mortgagor shall not settle any
claim under any of the insurance policies referred to in this Section 1.7
without the prior approval of Mortgagee.

                                       12

<PAGE>

               1.7.3 At least thirty (30) days prior to the expiration of any
insurance policy required by subsection 1.7.1, a policy or policies renewing or
extending such expiring policy or renewal or extension certificates or other
evidence of renewal or extension shall be delivered to Mortgagee.

               1.7.4 Mortgagor shall not purchase separate insurance policies
concurrent in form or contributing in the event of loss with those policies
required to be maintained under this Section 1.7, unless Mortgagee is included
thereon as an additional insured and, if applicable, with loss payable to
Mortgagee under an endorsement containing the provisions described in subsection
1.7.2. Mortgagor promptly shall notify Mortgagee whenever any such separate
insurance policy is obtained and promptly shall deliver to Mortgagee the policy
or certificate evidencing such insurance.

               1.7.5 Mortgagor shall, immediately upon receipt of any written
notice of any failure by Mortgagor to pay any insurance premium in respect of
any insurance policy required to be maintained under this Section 1.7, furnish a
copy of such notice to Mortgagee.

               1.7.6 Mortgagor shall maintain, or cause to be maintained, the
insurance described in this Section 1.7 with primary insurers rated (for claims
paying purposes) in one of the two highest generic categories by each Rating
Agency (as hereinafter defined). All insurers under policies required hereunder
shall be licensed and authorized to issue insurance in the state in which the
Land is located.

          SECTION 1.8.  Failure To Perform Covenants or To Make Certain
Payments. If Mortgagor shall fail to perform any of the covenants contained in
this Mortgage (including, without limitation, Mortgagor's covenants to (i) pay
the premiums in respect of all required insurance coverages, (ii) pay taxes and
assessments, (iii) make repairs, (iv) discharge Liens, (v) pay or perform any
obligations of Mortgagor under the Leases, or (vi) fail to maintain the
Premises, the Real Property Fixtures and the Equipment as required in Section
1.10), and such failure shall constitute an Event of Default, Mortgagee may, but
shall not be obligated to, make advances to perform such covenant on Mortgagor's
behalf and all sums so advanced shall be included in the Secured Obligations and
shall be secured hereby. Mortgagor shall repay within five Business Days after
demand therefor all sums so advanced by Mortgagee on behalf of Mortgagor, with
interest at the Default Rate. Neither the provisions of this Section 1.8 nor any
action taken by Mortgagee pursuant to the provisions of this Section 1.8 shall
prevent any such failure to observe any covenant contained in this Mortgage from
constituting an Event of Default.

          SECTION 1.9.  Inspection. Mortgagor shall permit Mortgagee, by its
agents, representatives, accountants and attorneys, to visit and inspect the
Premises, the Real Estate Fixtures and the Equipment at such reasonable times
and upon reasonable notice to Mortgagor as may be reasonably requested by
Mortgagee, subject to Section 4.5(e) of the Indenture. To the extent
practicable, such inspection shall not unreasonably interfere with the normal
operation or business conducted by Mortgagor.

          SECTION 1.10. Mortgagor To Maintain Improvements. Mortgagor shall not
commit any waste on the Premises or with respect to any Real Estate Fixtures or
Equipment.

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<PAGE>

Mortgagor represents and warrants that (i) the Premises are served by
all utilities required or necessary for the current use thereof, (ii) all
streets necessary to serve the Premises are completed and serviceable and have
been dedicated and accepted as such by the appropriate Governmental Authorities
and (iii) Mortgagor has access to the Premises from public roads sufficient to
allow Mortgagor and its tenants and invitees to conduct its and their businesses
at the Premises in the manner in which a prudent operator of property similar in
use and configuration to the Premises and located in the locality where the
Premises are located would conduct its business. Mortgagor shall, at all times,
maintain the Premises, the Real Estate Fixtures and the Equipment (other than
any portion thereof which shall be obsolete and/or disposed of in accordance
with the provisions of the Indenture) in good operating order, condition and
repair as is customary in the industry and shall make all repairs necessary,
structural or nonstructural, for the operation of Mortgagor's business.
Mortgagor shall (a) not alter the occupancy or use of all or any part of the
Premises, or any Real Estate Fixtures or Equipment, if such action would be
reasonably likely to diminish the value of the Mortgaged Property or impair
Mortgagee's rights and benefits hereunder, without the prior written consent of
Mortgagee, and (b) do all other acts which from the character or use of the
Premises, the Real Estate Fixtures and the Equipment may be reasonably necessary
or appropriate to maintain and preserve their value. The Mortgaged Property
cannot be sold, abandoned or disposed of except as expressly set forth in
Sections 4.13, 11.3 and 11.4 of the Indenture.

          SECTION 1.11. Mortgagor's Obligations with Respect to Leases.

               1.11.1 Mortgagor shall manage and operate the Mortgaged Property
or cause the Mortgaged Property to be managed and operated in a reasonably
prudent manner and will not, without the written consent of Mortgagee, enter
into any Lease (or any amendment or modification thereof) with any Person other
than Leases permitted under Section 11.3 of the Indenture.

               1.11.2 Mortgagor shall not in respect of any Leases:

               (i)    receive or collect, or permit the receipt or collection
          of, any rental or other payments under any Lease more than one (1)
          month in advance of the respective period in respect of which they are
          to accrue, except that (a) in connection with the execution and
          delivery of any Lease or of any amendment to any Lease, rental
          payments thereunder may be collected and received in advance in an
          amount not in excess of one (1) month's rent and (b) Mortgagor may
          receive and collect escalation and other charges in accordance with
          the terms of each Lease;

               (ii)   assign, transfer or hypothecate (other than to Mortgagee
          hereunder or as otherwise permitted under Section 1.12 of this
          Mortgage) any rental or other payment under any Lease whether then due
          or to accrue in the future, the interest of Mortgagor as lessor under
          any Lease or the rents, issues, revenues, profits or other income of
          the Mortgaged Property;

               (iii)  enter into any Lease substantially satisfactory to
          Mortgagee after the date hereof that does not contain terms
          substantially to the effect as follows:

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<PAGE>

                     (a)  such Lease and the rights of the tenant thereunder
               shall be subject and subordinate to the rights of Mortgagee under
               and the Lien of this Mortgage;

                     (b)  such Lease has been assigned as collateral security by
               Mortgagor as landlord thereunder to Mortgagee under this
               Mortgage;

                     (c)  in the case of any foreclosure hereunder, the rights
               and remedies of the tenant in respect of any obligations of any
               successor landlord thereunder shall be limited to the equity
               interest of such successor landlord in the Premises and any
               successor landlord shall not (1) be liable for any act, omission
               or default of any prior landlord under the Lease or (2) be
               required to make or complete any tenant improvements or capital
               improvements or repair, restore, rebuild or replace the demised
               premises or any part thereof in the event of damage, casualty or
               condemnation or (3) be required to pay any amounts to tenant
               arising under the Lease prior to such successor landlord taking
               possession;

                     (d)  the tenant's obligation to pay rent and any additional
               rent shall not be subject to any abatement, deduction,
               counterclaim or setoff as against any mortgagee or purchaser upon
               the foreclosure of any of the Premises for the period prior to
               such foreclosure or the giving or granting of a deed in lieu
               thereof by reason of a landlord default occurring prior to such
               foreclosure and such mortgagee or purchaser will not be bound by
               any advance payments of rent in excess of one month or any
               security deposits unless such security was actually received; and

                     (e)  subject to Mortgagee's agreement not to disturb the
               tenant, the tenant agrees to attorn, upon a foreclosure of the
               Premises or the giving or granting of a deed in lieu thereof; or

               (iv)  terminate or permit the termination of any Lease of space,
          accept surrender of all or any portion of the space demised under any
          Lease prior to the end of the term thereof or accept assignment of any
          Lease to Mortgagor unless:

                     (a)  the tenant under such Lease has not paid the
               equivalent of two months' rent and Mortgagor has made reasonable
               efforts to collect such rent; or

                     (b)  Mortgagor shall deliver to Mortgagee an Officers'
               Certificate to the effect that Mortgagor has entered into a new
               Lease (or Leases) for the space covered by the terminated or
               assigned Lease with a term (or terms) which expire(s) no earlier
               than the date on which the terminated or assigned Lease was to
               expire (excluding renewal options), and with a tenant (or
               tenants) having a creditworthiness (as reasonably determined by
               Mortgagor) sufficient to pay the rent and other charges due under
               the new Lease (or Leases), and the tenant(s) shall have commenced

                                       15

<PAGE>

               paying rent, including, without limitation, all operating
               expenses and other amounts payable under the new Lease (or
               Leases) without any abatement or concession in an amount at least
               equal to the amount which would have then been payable under the
               terminated or assigned Lease; or

                      (c)  otherwise permitted under Section 11.3 of the
               Indenture.

               1.11.3 Mortgagor shall, in all material respects, timely perform
and observe all the terms, covenants and conditions required to be performed and
observed by Mortgagor under each Lease. Mortgagor promptly shall notify
Mortgagee of the receipt of any notice from any lessee under any material Lease
claiming that Mortgagor is in default in the performance or observance of any of
the terms, covenants or conditions thereof to be performed or observed by
Mortgagor and will cause a copy of each such notice to be delivered promptly to
Mortgagee.

               1.11.4 Mortgagor shall deliver to Mortgagee, within thirty (30)
days after request thereof (but not more than once in each calendar year), an
Officers' Certificate, (i) containing a list of names of all tenants under
Leases, if any, and the net square footage leased and the annual rental
currently payable by each of them, (ii) stating for which, if any, Leases then
in force Mortgagor has issued a notice of default which default has not been
cured and the nature of such default and (iii) stating that, to the best of such
officers' knowledge, each Lease complies with the provisions of this Mortgage.
Mortgagor shall deliver to Mortgagee within thirty (30) days after request
thereof copies, certified by an officer of Mortgagor, of all Leases not
theretofore delivered to Mortgagee.

          SECTION 1.12. Transfer Restrictions. Except as permitted by the
Indenture and under Section 1.11.1 of this Mortgage, Mortgagor shall not sell,
convey, assign or otherwise dispose of, or grant any option with respect to, any
of the Mortgaged Property. Mortgagor shall not create or permit to exist any
Lien upon or with respect to any of the Mortgaged Property other than the
following Liens:

               (i)    Liens in respect of amounts payable by Mortgagor pursuant
          to Section 1.5 if and to the extent such amounts are not yet due and
          payable or are being bonded (to the extent required) in accordance
          with the provisions of subsection 1.5.3 or are being contested in
          accordance with the provisions of subsection 1.5.5; provided, however,
          that such Liens shall in all respects be subject and subordinate in
          priority to the Lien and security interest created and evidenced by
          this Mortgage except to the extent the law or regulation creating or
          authorizing such Lien provides that such Lien must be superior to the
          Lien and security interest created and evidenced by this Mortgage.

               (ii)   Permitted Collateral Liens, provided, however, that the
          reference to Existing Liens in clause (ii) of the definition of
          Permitted Collateral Liens shall be deemed to include the Prior Liens;
          and

               (iii)  The Lien and security interest granted to Mortgagee
          pursuant to this Mortgage.

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<PAGE>

          SECTION 1.13. Destruction; Condemnation.

               1.13.1 Destruction; Insurance Proceeds. If there shall occur any
damage to, or loss or destruction of, the Improvements, Real Estate Fixtures and
Equipment, or any part of any thereof (each, a "Destruction"), Mortgagor shall
promptly send to Mortgagee a notice setting forth the nature and extent of such
Destruction; provided, however, that Mortgagor shall not be required to deliver
the notice contemplated in this sentence in the event that any Destruction would
give rise to insurance proceeds in an amount less than or equal to $500,000. The
proceeds of any insurance payable in respect of any such Destruction shall
constitute Trust Moneys and are hereby assigned and shall be paid to Mortgagee.
All such proceeds, less the amount of any expenses incurred in litigating,
arbitrating, compromising or settling any claim arising out of such Destruction
(the "Net Proceeds"), shall constitute Trust Moneys and be applied in accordance
with the provisions of this Mortgage and/or the Indenture. Mortgagee is hereby
authorized and directed to pay from Trust Moneys any and all such expenses
deemed reasonably necessary by Mortgagee in connection with the foregoing.

               1.13.2 Condemnation; Assignment of Award. If there shall occur
any taking of the Mortgaged Property or any part thereof, in or by condemnation
or other eminent domain proceedings pursuant to any law, general or special, or
by reason of the temporary requisition of the use or occupancy of the Mortgaged
Property or any part thereof, by any governmental authority, civil or military
(each, a "Taking"), Mortgagor promptly shall notify Mortgagee upon receiving
notice of such Taking or commencement of proceedings therefor; provided,
however, that Mortgagor shall not be required to deliver the notice contemplated
in this sentence in the event that any Taking would give rise to a loss in an
amount less than or equal to $500,000. Mortgagee may participate in any
proceedings or negotiations which might result in any Taking. Mortgagee may be
represented by counsel reasonably satisfactory to it at the expense of
Mortgagor. Mortgagor shall deliver or cause to be delivered to Mortgagee all
instruments reasonably requested by it to permit such participation. Mortgagor
shall in good faith and with due diligence file and prosecute what would
otherwise be Mortgagor's claim for any such award or payment and cause the same
to be collected and paid over to Mortgagee, and hereby irrevocably authorizes
and empowers Mortgagee, in the name of Mortgagor as its true and lawful
attorney-in-fact or otherwise, to collect and to receipt for any such award or
payment, and, in the event Mortgagor fails so to act or is otherwise in default
hereunder beyond any applicable notice and grace period set forth herein or in
the Indenture, to file and prosecute such claim. Mortgagor shall pay all costs,
fees and expenses reasonably incurred by Mortgagee in connection with any Taking
and seeking and obtaining any award or payment on account thereof. Any proceeds,
award or payment in respect of any Taking shall constitute Trust Moneys and are
hereby assigned and shall be paid to Mortgagee. Mortgagor shall take all steps
necessary to notify the condemning authority of such assignment. Such award or
payment, less the amount of any expenses incurred in litigating, arbitrating,
compromising or settling any claim arising out of such Taking ("Net Award"),
shall be applied in accordance with the provisions of the Indenture. Mortgagee
is hereby authorized and directed to pay from Trust Moneys any and all such
expenses deemed necessary and reasonable by Mortgagee in connection with the
foregoing.

          SECTION 1.14. Alterations. Mortgagor shall not make any structural
addition, modification or change (each, an "Alteration") to the Premises, the
Real Estate Fixtures or the Equipment except as permitted by Section 11.3 of the
Indenture. Mortgagor shall (a) complete

                                       17

<PAGE>

each Alteration promptly (provided, however, that in the event of the occurrence
of any Force Majeure, Mortgagor shall exercise all reasonable efforts to
complete the Alteration affected thereby as promptly as practicable), in a good
and workmanlike manner and, in all material respects, in compliance with all
applicable local laws, ordinances and requirements and (b) pay when due all
lawful claims for labor performed and materials furnished in connection with
such Alteration, unless contested in accordance with the provisions of
subsection 1.5.5.

          SECTION 1.15. Compliance with Applicable Laws and Regulations.

               1.15.1 General. Except as set forth on Schedule 1.15.1, to
Mortgagor's knowledge, Mortgagor is in compliance in all material respects with
all laws that are material to the operation of the business at the Mortgaged
Property (the "Business").

               1.15.2 Environmental Matters. To Mortgagor's knowledge, except as
set forth on Schedule 1.15.2, (a) the Business and the Mortgaged Property are
and for the last five (5) years have been in compliance in all material respects
with Environmental Laws; (b) there have not been and there are no actions,
activities, circumstances, conditions, events or incidents, including, without
limitation, the release, emission, discharge, presence or disposal of any
Hazardous Substance on any of the Mortgaged Property, that could reasonably be
expected to prevent, hinder or limit continued compliance in all material
respects with Environmental Laws or could reasonably be expected to form the
basis of a material environmental claim against Mortgagor or against any Person
whose liability for any environmental claim Mortgagor has or may have retained
or assumed either contractually or by operation of law; (c) none of the
following exists at any of the Mortgaged Property: (i) under- or above-ground
storage tanks, (ii) friable asbestos containing material, (iii) transformers
containing polychlorinated biphenyls at concentrations greater than 500 parts
per million, or (iv) landfills, surface impoundments, or disposal areas (except
as could not reasonably be expected to form the basis of a material claim); (d)
Mortgagor has provided true and accurate copies of (i) all material reports,
studies and analyses of the cost for the Business as conducted to maintain or
achieve compliance with proposed future requirements of Environmental Law, and
(ii) Environmental Reports, and (e) Mortgagor is in substantial compliance with
all terms and conditions of all Permits or material representations made in such
Permit applications as they relate to the Mortgaged Property.

               1.15.3 Definitions. For purposes of this Mortgage:

                      (i)   "Hazardous Substance" means any material, substance,
               or waste, or combination thereof which is classified as
               hazardous, toxic, pollutant or contaminant or words of similar
               meaning, whether solid, liquid or gaseous in nature, under
               Environmental Laws, including without limitation petroleum
               (including crude oil or any fraction thereof), polychlorinated
               biphenyls (PCBs), asbestos and radioactive materials;

                      (ii)  "Environmental Law" means any and all applicable
               federal, state, and local statutes, laws, regulations,
               ordinances, orders, common law, and similar provisions currently
               in existence and applicable and having the force or effect of
               law, concerning public health or safety, worker health or safety,
               pollution or protection of the environment,

                                       18

<PAGE>

               including, but not limited to, the Clean Air Act, 42 U.S.C. (S)
               7401 et seq. (the "Clean Air Act"), the Clean Water Act, 33
               U.S.C. (S) 1251 et seq., the Resource Conservation Recovery Act,
               42 U.S.C. 6901 et seq. ("RCRA"), the Toxic Substances Control
               Act, 15 U.S.C. (S) 2601 et seq., the Comprehensive Environmental
               Response, Compensation and Liability Act, 42 U.S.C. (S) 9601 et
               seq. ("CERCLA"), the Occupational Safety and Health Act of 1970
               (but only to the extent it regulates occupational exposure to
               Hazardous Substances), all as amended, and any and all other
               applicable laws, all as amended, which govern: (i) the existence,
               cleanup, removal and/or remedy of contamination or threat of
               contamination at, on or under owned or leased real property; (ii)
               the release, threatened release, emission or discharge of
               Hazardous Substances into the environment; (iii) the control of
               Hazardous Substances; or (iv) the presence, use, manufacturing,
               refining production, generation, transport, treatment, storage,
               disposal, distribution, importing, labeling, testing, processing,
               removal, recycling, handling or recovery of Hazardous Substances;
               and

                      (iii)  "Environmental Reports" means any and all
               environmental review and assessment reports that Republic
               Engineered, its corporate predecessors, or any Subsidiary of
               Republic Engineered has ever caused to be prepared or has ever
               received within the last five (5) years with respect to the
               Mortgaged Property.

               1.15.4 Compliance. Subject to Mortgagor's right to contest set
forth in Section 1.5.5 of this Mortgage, and except where failure to comply with
clauses (i), (ii) and (iii) below would not have a Material Adverse Effect,
Mortgagor shall (i) comply or cause compliance in all material respects with any
and all applicable present and future Environmental Laws relating to the
Mortgaged Property and all operations conducted thereat; (ii) conduct or cause
to be conducted and/or pay or cause to be paid, as required, the cost of any
investigation, remediation, removal, response or corrective action
(collectively, "Response Action") relating to any Hazardous Materials on, at,
under or emanating from the Mortgaged Property required by any applicable
present and future Environmental Laws; (iii) not release, discharge or dispose
of any Hazardous Materials on, at, under or from the Mortgaged Property except
in material compliance with any applicable present and future Environmental
Laws; and (iv) apply any insurance proceeds or other sums received by it in
respect of any Response Action relating to any Hazardous Materials to any unpaid
costs or expenses of such Response Action, if any, or to reimbursement for such
costs previously paid by Mortgagee, if any. In the event Mortgagor fails to
comply with the covenants in the preceding sentence and such failure shall
constitute an Event of Default, Mortgagee may (upon receipt of an indemnity or
other security reasonably satisfactory to Mortgagee), in addition to any other
remedies set forth herein, but shall not be obligated to, as trustee for and at
Mortgagor's sole cost and expense cause to be taken, any reasonable Response
Action relating to Hazardous Materials and required by any and all applicable
present and future Environmental Laws. Any reasonable costs or expenses incurred
by Mortgagee for such purpose shall be due within ten (10) days after demand and
payable by Mortgagor and shall bear interest at the Default Rate. Mortgagor
shall provide to Mortgagee and its agents and employees reasonable access to the
Mortgaged Property and upon the occurrence and during the continuation of an
Event of Default, specifically grants to Mortgagee a license, at

                                       19

<PAGE>

the sole reasonable cost and expense of Mortgagor, in substantial compliance
with any and all applicable present and future Environmental Laws, to
investigate, remove or otherwise remediate any Hazardous Material located
thereon, or to take any reasonable action with respect to any and all applicable
present and future Environmental Laws or in connection with any Hazardous
Materials that could reasonably be expected to result in a material diminution
in the value of the Mortgaged Property, or in the incurrence of any material
obligation or liability of the holders of the Notes or Mortgagee if Mortgagor
fails to so act and such investigation, removal, remediation or other action is
required under any applicable present and future Environmental Laws; provided,
however, that nothing contained herein shall obligate Mortgagee to exercise any
rights under such license. Upon written demand by Mortgagee, which shall include
a reasonably specific statement of the basis thereof (which shall be specific to
the condition of the Mortgaged Property) and which shall be made not more
frequently than once in any twelve-month period or at any time that Mortgagee is
exercising its remedies under this Mortgage during the continuation of an Event
of Default, Mortgagee shall have the right, but shall not be obligated, at the
sole reasonable cost and expense of Mortgagor, to conduct an environmental audit
or update thereof or other review of the Mortgaged Property, relating to those
items specified in writing or relating to the remedy that the Mortgagee is
exercising under this Mortgage, by such persons or firms appointed by Mortgagee
and reasonably acceptable to Mortgagor, and Mortgagor shall cooperate in all
respects in the conduct of such environmental audit or review, including,
without limitation, by providing reasonable access to the Mortgaged Property and
to all relevant records relating thereto. Mortgagor shall indemnify and hold
Mortgagee harmless from and against all loss, cost, damage or expense
(including, without limitation, reasonable attorneys' and consultants' fees)
that Mortgagee may sustain by reason of the assertion against Mortgagee by any
party of any claim relating to Hazardous Materials or reasonable actions taken
with respect thereto as authorized hereunder other than such loss, cost, damage
or expense, if any, to the extent it is caused solely by the gross negligence or
willful misconduct of Mortgagee or its agents, contractors and subcontractors in
performing any act or exercising its remedies under this Mortgage. It is the
express intention of the parties to this Mortgage that nothing contained herein
or in any other Document shall result in Mortgagee being deemed an "owner" or
"operator" under applicable present and future Environmental Laws.

          SECTION 1.16. Asbestos. Mortgagor shall not install nor permit to be
installed in the Mortgaged Property asbestos or any asbestos-containing material
(collectively, "ACM") except in compliance with any and all applicable present
and future Environmental Laws respecting ACM. With respect to any ACM (including
friable or non-friable asbestos or asbestos-containing materials regulated under
any Environmental Law) discovered to be present in the Mortgaged Property at any
time during the operation of this Mortgage, Mortgagor shall comply in all
material respects with any and all applicable present and future Environmental
Laws, all at Mortgagor's sole cost and expense Upon the occurrence and during
the continuation of an Event of Default, Mortgagee may, but shall not be
obligated to, in addition to any other remedies set forth herein, take, in
substantial compliance with any applicable present and future Environmental
Laws, whatever steps it deems reasonably necessary or appropriate to comply with
any and all applicable present and future Environmental Laws. Any costs or
expenses reasonably incurred by Mortgagee for such purpose shall be due within
ten (10) days after demand and payable by Mortgagor and shall bear interest at
the Default Rate. Mortgagor shall provide to Mortgagee and its agents and
employees reasonable access to the Mortgaged Property and hereby specifically
grants to Mortgagee a license to remove or encapsulate such

                                       20

<PAGE>

ACM in substantial compliance with any applicable present and future
Environmental Law if Mortgagor fails to do so and removal or encapsulation is
required under any applicable present and future Environmental Law; provided,
however, that nothing contained herein shall obligate Mortgagee to exercise any
rights under such license. Mortgagor shall indemnify and hold Mortgagee harmless
from and against all loss, cost, damage and expense (including, without
limitation, reasonable attorneys' and consultants' fees) that Mortgagee may
sustain as a result of the presence of any ACM and any removal or encapsulation
thereof or compliance with any and all applicable present and future
Environmental Laws other than such loss, cost, damage or expense, if any, to the
extent it is caused solely by the gross negligence or willful misconduct of
Mortgagee or its agents, contractors and subcontractors in performing any act or
exercising its remedies under this Mortgage.

          SECTION 1.17. Books and Records; Reports. Mortgagor shall keep proper
books of record and account, which shall accurately represent the financial
condition of the Mortgaged Property. Mortgagee and its authorized
representatives shall have the right upon reasonable advance notice, and at
reasonable times, from time to time, to examine the books and records of
Mortgagor relating to the operation of the Mortgaged Property including, but not
limited to, title and survey information. As a condition to any such inspection,
Mortgagee shall execute and deliver in favor of Mortgagor a confidentiality
agreement which, in the good faith determination of both Mortgagor and
Mortgagee, is in form and substance reasonably satisfactory to Mortgagor and
Mortgagee, provided that (i) during the period prior to any foreclosure of the
Mortgaged Property, the following information concerning the Mortgaged Property
shall be deemed not to be confidential information for purposes of such
confidentiality agreement: title and ownership information as to property and
equipment, property survey information, equipment operating logs, equipment
maintenance logs, and equipment warranty records, and any other information
available in public records and (ii) during the period after any foreclosure of
the Mortgaged Property, only the following shall be deemed to be confidential
information for purposes of such confidentiality agreement: pricing information,
production costs information, customer information. Mortgagee shall agree to
comply, and cause its representatives to comply, with all occupational health
and safety rules and regulations governing the operation of the Mortgaged
Property.

          SECTION 1.18. No Claims Against Mortgagee. Nothing contained in this
Mortgage shall constitute any consent or request by Mortgagee, express or
implied, for the performance of any labor or services or the furnishing of any
materials or other property in respect of the Premises or any part thereof, nor
as giving Mortgagor any right, power or authority to contract for or permit the
performance of any labor or services or the furnishing of any materials or other
property in such fashion as would permit the making of any claim against
Mortgagee in respect thereof or any claim that any Lien based on the performance
of such labor or services or the furnishing of any such materials or other
property is prior to the Lien of this Mortgage.

          SECTION 1.19. Utility Services. Mortgagor shall pay, or cause to be
paid, when due all charges for all public or private utility services, all
public or private rail and highway services, all public or private communication
services, all sprinkler systems, and all protective services, any other services
of whatever kind or nature at any time rendered to or in connection with the
Premises or any part thereof, shall comply in all material respects with all

                                       21

<PAGE>

contracts relating to any such services, and shall do all other things required
for the maintenance and continuance of all such services to the extent required
to fulfill the obligations set forth in Section 1.10.

                                   ARTICLE II

                     ASSIGNMENT OF RENTS; SECURITY AGREEMENT

          SECTION 2.1.  Assignment of Leases, Rents, Issues and Profits.

               2.1.1 Mortgagor absolutely, presently and irrevocably assigns,
transfers and sets over to Mortgagee and grants to Mortgagee, subject to the
terms and conditions hereof, all Mortgagor's estate, right, title, interest,
claim and demand as landlord to collect rent and other sums due under all
existing Leases and any other Leases, including, without limitation, all
extensions of the terms of the Leases (such assigned rights, "Mortgagor's
Interest"), as follows:

               (i)   the immediate and continuing right to receive and collect
          Rents payable by all tenants or other parties pursuant to the Leases;

               (ii)  all claims, rights, powers, privileges and remedies of
          Mortgagor, whether provided for in any Lease or arising by statute or
          at law or in equity or otherwise, consequent on any failure on the
          part of any tenant to perform or comply with any term of any Lease;

               (iii) all rights to take all actions upon the happening of a
          default under any Lease as shall be permitted by such Lease or by law,
          including, without limitation, the commencement, conduct and
          consummation of proceedings at law or in equity; and

               (iv)  the full power and authority, in the name of Mortgagor or
          otherwise, to enforce, collect, receive and receipt for any and all of
          the foregoing and to do any and all other acts and things whatsoever
          which Mortgagor or any landlord is or may be entitled to do under the
          Leases.

               2.1.2 Any Rents receivable by Mortgagee hereunder, after payment
of all proper costs and charges, shall be applied to all amounts due and owing
under and as provided in this Mortgage and/or the Indenture. Mortgagee shall be
accountable to Mortgagor only for Rents actually received by Mortgagee pursuant
to this assignment. The collection of such Rents and the application thereof
shall not cure or waive any Event of Default or waive, modify or affect notice
of Event of Default or invalidate any act done pursuant to such notice.

               2.1.3 So long as no Event of Default shall have occurred and be
continuing, Mortgagor shall have a license to collect and apply the Rents and to
enforce the obligations of tenants under the Leases; provided, however, that
Mortgagor shall, at any time upon Mortgagee's request, establish a lock box
arrangement with Mortgagee and notify all applicable tenants to make payment of
all amounts due under any Lease to the appropriate lock box account. Immediately
upon the occurrence of any Event of Default, the license granted in the
immediately preceding sentence shall cease and terminate, with or without any
notice, action

                                       22

<PAGE>

or proceeding. Upon such Event of Default and during the continuance thereof,
Mortgagee may, to the fullest extent permitted by the Leases (i) exercise any of
Mortgagor's rights under the Leases, (ii) enforce the Leases, (iii) demand,
collect, sue for, attach, levy, recover, receive, compromise and adjust, and
make, execute and deliver receipts and releases for all Rents or other payments
that may then be or may thereafter become due, owing or payable with respect to
the Leases and (iv) generally do, execute and perform any other act, deed,
matter or thing whatsoever that ought to be done, executed and performed in and
about or with respect to the Leases, as fully as allowed or authorized by
Mortgagor's Interest. At such time as any Event of Default which shall have
caused Mortgagor's rights described in the first sentence of this subsection
2.1.3 to cease shall have been cured, Mortgagor shall thereafter be entitled to
exercise the rights described in the first sentence of this subsection 2.1.3
until such time as any other Event of Default shall have occurred and be
continuing.

               2.1.4 Mortgagor hereby irrevocably authorizes and directs the
tenant under each Lease to pay directly to, or as directed by, Mortgagee all
Rents accruing or due under its Lease upon receipt of a notice from Mortgagee to
the effect that an Event of Default exists hereunder and requesting such
payment. Mortgagor hereby authorizes the tenant under each Lease to rely upon
and comply with any notice or demand from Mortgagee for payment of Rents to
Mortgagee and Mortgagor shall have no claim against any tenant for Rents paid by
such tenant to Mortgagee pursuant to such notice or demand.

               2.1.5 Subject to the provisions of Section 1.11 of this Mortgage,
Mortgagor at its sole cost and expense shall use commercially reasonable efforts
to enforce the Leases in accordance with their terms. Neither this Mortgage nor
any action or inaction on the part of Mortgagee shall release any tenant under
any Lease, any guarantor of any Lease or Mortgagor from any of their respective
obligations under the Leases or constitute an assumption of any such obligation
on the part of Mortgagee. No action or failure to act on the part of Mortgagor
shall adversely affect or limit the rights of Mortgagee under this Mortgage or,
through this Mortgage, under the Leases.

               2.1.6 All rights, powers and privileges of Mortgagee herein set
forth are coupled with an interest and are irrevocable, subject to the terms and
conditions hereof, and Mortgagor shall not take any action under the Leases or
otherwise which is inconsistent with this Mortgage or any of the terms hereof
and any such action inconsistent herewith or therewith shall be void. Mortgagor
shall, from time to time, upon request of Mortgagee, execute all instruments and
further assurances and all supplemental instruments and take all such action as
Mortgagee from time to time may reasonably request in order to perfect, preserve
and protect the interests intended to be assigned to Mortgagee hereby.

               2.1.7 Subject to the provisions of Section 1.11 of this Mortgage,
Mortgagor shall not, unilaterally or by agreement, subordinate, amend, modify,
extend, discharge, terminate, surrender, waive or otherwise change any term of
any of the Leases in any manner which would (i) materially increase landlord's
obligations thereunder, (ii) reduce landlord's rights thereunder, (iii)
materially decrease tenant's obligations thereunder, (iv) impair the value or
utility of the Mortgaged Property or the Lien of this Mortgage or (v) otherwise
violate this Mortgage. If the Leases shall be amended as permitted hereby, they
shall continue to

                                       23

<PAGE>

be subject to the provisions hereof without the necessity of any further act by
any of the parties hereto.

               2.1.8 Nothing contained herein shall operate or be construed to
(i) obligate Mortgagee to perform any of the terms, covenants or conditions
contained in the Leases or otherwise to impose any obligation upon Mortgagee
with respect to the Leases (including, without limitation, any obligation
arising out of any covenant of quiet enjoyment contained in the Leases in the
event that any tenant under a Lease shall have been joined as a party defendant
in any action by which the estate of such tenant shall be terminated) or (ii)
place upon Mortgagee any responsibility for the operation, control, care,
management or repair of the Premises.

          SECTION 2.2. Security Interest in Personal Property.

               2.2.1 This Mortgage shall constitute a security agreement and
shall create and evidence a security interest or common law Lien in all the
Equipment and in all the other items of Mortgaged Property in which a security
interest may be granted or a common law pledge created pursuant to the UCC or
under the common law in such state (collectively, "Personal Property").

               2.2.2 Upon the occurrence and during the continuation of any
Event of Default, in addition to the remedies set forth in Article III,
Mortgagee shall have the power to sell the Personal Property in accordance with
the UCC or under other applicable law. It shall not be necessary that any
Personal Property offered be physically present at any such sale or
constructively in the possession of Mortgagee or the person conducting the sale.

               2.2.3 Upon the occurrence and during the continuance of any Event
of Default, Mortgagee may sell the Personal Property or any part thereof at
public or private sale with notice to Mortgagor as hereinafter provided. The
Proceeds of any such sale, after deducting all expenses of Mortgagee in taking,
storing, repairing and selling the Personal Property (including, without
limitation, attorneys' fees) shall be applied in the manner set forth in
subsection 3.2.3. At any sale, public or private, of the Personal Property or
any part thereof, Mortgagee may purchase any or all of the Personal Property
offered at such sale.

               2.2.4 Mortgagee shall give Mortgagor reasonable notice of any
sale of any of the Personal Property pursuant to the provisions of this Section
2.2. Notwithstanding the provisions of Section 5.2, any such notice shall
conclusively be deemed to be reasonable and effective if such notice is mailed
at least ten (10) days prior to any sale, by first class or certified mail,
postage prepaid to Mortgagor at its address determined in accordance with the
provisions of Section 5.2.

                                  ARTICLE III

                         EVENTS OF DEFAULT AND REMEDIES

          SECTION 3.1. Remedies in Case of an Occurrence of an Event of Default
The occurrence of any event, or the existence of any condition, that is
specified as an "Event of Default" under the Indenture or any other Security
Document shall constitute an "Event of

                                       24

<PAGE>

Default" hereunder. An Event of Default shall be deemed to occur if the
Collateral Agent should receive at any time following the closing of the
transaction a Secretary of State's Report indicating that the Collateral Agent's
security interest is not prior to all other security interests or other
interests reflected in the report, other than Permitted Collateral Liens. If an
Event of Default shall have occurred and be continuing, Mortgagee may, but shall
not be obligated to, in addition to any other action permitted by law (and not
limited in any manner by the remedies contained in the Notes and the Indenture),
take one or more of the following actions, to the greatest extent permitted by
applicable local law:

               3.1.1 By written notice to Mortgagor, the Mortgagee may, and
shall, upon the request of the holders of not less than 25% in aggregate
principal amount of the outstanding Notes, declare the principal of and accrued
interest on, all the Secured Obligations to be due and payable immediately;

               3.1.2 Personally, or by its agents or attorneys, (i) enter into
and upon all or any part of the Mortgaged Property and exclude Mortgagor, its
agents and servants wholly therefrom, (ii) use, operate, manage and control the
Premises, the Real Estate Fixtures and the Equipment and conduct the business
thereof, (iii) maintain and restore the Mortgaged Property, (iv) make all
reasonably necessary or proper repairs, renewals and replacements and such
useful Alterations thereto and thereon as Mortgagee may deem advisable, (v)
manage, lease and operate the Mortgaged Property and carry on the business
thereof and exercise all rights and powers of Mortgagor with respect thereto
either in the name of Mortgagor or otherwise, or (vi) collect and receive all
earnings, revenues, rents, issues, profits and income of the Mortgaged Property
and any or every part thereof;

               3.1.3 With or without entry, personally or by its agents or
attorneys, (i) sell the Mortgaged Property and all estate, right, title and
interest, claim and demand therein at one or more sales in one or more parcels,
in accordance with the provisions of Section 3.2 or (ii) institute and prosecute
proceedings for the complete or partial foreclosure of the Lien and security
interests created and evidenced hereby; or

               3.1.4 Take such steps to protect and enforce its rights whether
by action, suit or proceeding at law or in equity for the specific performance
of any covenant, condition or agreement in the Indenture, the Notes and any
other document evidencing or securing the Secured Obligations or in aid of the
execution of any power granted in this Mortgage, or for any foreclosure
hereunder, or for the enforcement of any other appropriate legal or equitable
remedy or otherwise as Mortgagee shall elect.

Notwithstanding anything to the contrary in this Mortgage, if Mortgagor is in
breach of a covenant, obligation or representation qualified by a Material
Adverse Effect, then (i) if such breach is due to the existence of a Material
Adverse Effect of the type referred to in clause (i) of the definition of such
term, then Mortgagee shall be entitled to those remedies set forth in this
Article III upon the occurrence of an Event of Default resulting from such
breach, and (ii) if such breach is due to the existence of a Material Adverse
Effect of the type referred to in clause (ii) of the definition of such term,
then (x) Mortgagee's remedies under this Mortgage shall be limited to an action
for specific performance with respect to the performance of such covenant or

                                       25

<PAGE>

obligation and (y) such breach shall be deemed not to be and not to give rise to
an Event of Default.

          SECTION 3.2. Sale of Mortgaged Property If Event of Default Occurs;
Proceeds of Sale.

               3.2.1 If an Event of Default shall have occurred and be
continuing, Mortgagee may institute an action to foreclose this Mortgage or take
such other action as may be permitted and available to Mortgagee at law or in
equity for the enforcement of the Indenture and the Notes and realization on the
Mortgaged Property and proceeds thereon through power of sale or to final
judgment and execution thereof for the Secured Obligations, and in furtherance
thereof Mortgagee may sell the Mortgaged Property at one or more sales, as an
entirety or in parcels, at such time and place, upon such terms and after such
notice thereof as may be required or permitted by law or statute or in equity.
Mortgagee may execute and deliver to the purchaser at such sale a conveyance of
the Mortgaged Property in fee simple and an assignment or conveyance of all
Mortgagor's interest in the Leases and the Mortgaged Property, each of which
conveyances and assignments shall contain recitals as to the Event of Default
upon which the execution of the power of sale herein granted depends and
Mortgagor hereby constitutes and appoints Mortgagee the true and lawful
attorney-in-fact of Mortgagor to make any such recitals, sale, assignment and
conveyance, and all of the acts of Mortgagee as such attorney-in-fact are hereby
ratified and confirmed. Mortgagor agrees that such recitals shall be binding and
conclusive upon Mortgagor and that any assignment or conveyance to be made by
Mortgagee shall divest Mortgagor of all right, title, interest, equity and right
of redemption, including any statutory redemption, in and to the Mortgaged
Property. The power and agency hereby granted are coupled with an interest and
are irrevocable by death or dissolution, or otherwise, and are in addition to
any and all other remedies which Mortgagee may have hereunder, at law or in
equity. So long as the Secured Obligations, or any part thereof, remain unpaid,
Mortgagor agrees that possession of the Mortgaged Property by Mortgagor, or any
person claiming under Mortgagor, shall be as tenant and, in case of a sale under
power or upon foreclosure as provided in this Mortgage, Mortgagor and any person
in possession under Mortgagor, as to whose interest such sale was not made
subject, shall, at the option of the purchaser at such sale, then become and be
tenants holding over, and shall forthwith deliver possession to such purchaser,
or be summarily dispossessed in accordance with the laws applicable to tenants
holding over. In case of any sale under this Mortgage by virtue of the exercise
of the powers herein granted, or pursuant to any order in any judicial
proceeding or otherwise, the Mortgaged Property may be sold as an entirety or in
separate parcels in such manner or order as Mortgagee in its sole discretion may
elect. One or more exercises of powers herein granted shall not extinguish or
exhaust such powers, until the entire Mortgaged Property is sold or all amounts
secured hereby are paid in full.

               3.2.2 In the event of any sale made under or by virtue of this
Article III, the entire principal of and accrued interest in respect of the
Secured Obligations, if not previously due and payable, may, at the option of
Mortgagee, and shall upon the request of the holders of not less than 25% in
aggregate principal amount of the outstanding Notes, immediately become due and
payable, anything in this Mortgage to the contrary notwithstanding.

               3.2.3 The proceeds of any sale made under or by virtue of this
Article III, together with any other sums which then may be held by Mortgagee
under this

                                       26

<PAGE>

Mortgage, whether under the provisions of this Article III or otherwise, shall,
except as otherwise required by law, be applied in accordance with the
provisions of the Indenture.

               3.2.4 Mortgagee may bid for and acquire the Mortgaged Property or
any part thereof at any sale made under or by virtue of this Article III and, in
lieu of paying cash therefor, may make settlement for the purchase price by
crediting against the purchase price the unpaid amounts outstanding to Mortgagee
whether or not then due and owing in respect of the Secured Obligations, after,
to the extent permitted by applicable law, deducting from the sales price the
expense of the sale and the reasonable costs of the action or proceedings and
any other sums that Mortgagee is authorized to deduct under this Mortgage.

               3.2.5 To the extent permitted by applicable law, Mortgagee may
adjourn from time to time any sale by it to be made under or by virtue of this
Mortgage by announcement at the time and place appointed for such sale or for
such adjourned sale or sales and Mortgagee, without further notice or
publication, may make such sale at the time and place to which the same shall be
so adjourned.

          SECTION 3.3. Additional Remedies in Case of an Event of Default.

               3.3.1 Mortgagee shall be entitled to recover judgment as
aforesaid either before, after or during the pendency of any proceedings for the
enforcement of the provisions of this Mortgage, and the right of Mortgagee to
recover such judgment shall not be affected by any entry or sale hereunder, or
by the exercise of any other right, power or remedy for the enforcement of the
provisions of this Mortgage, or the foreclosure of, or absolute conveyance
pursuant to, this Mortgage. In case of proceedings against Mortgagor in
insolvency or bankruptcy or any proceedings for its reorganization or involving
the liquidation of its assets, Mortgagee shall be entitled to prove the whole
amount of principal and interest and other payments, charges and costs due in
respect of the Secured Obligations to the full amount thereof without deducting
therefrom any proceeds obtained from the sale of the whole or any part of the
Mortgaged Property; provided, however, that in no case shall Mortgagee receive a
greater amount than the aggregate of such principal, interest and such other
payments, charges and costs (with interest at the Default Rate) from the
proceeds of the sale of the Mortgaged Property and the distribution from the
estate of Mortgagor.

               3.3.2 Any recovery of any judgment by Mortgagee and any levy of
any execution under any judgment upon the Mortgaged Property shall not affect in
any manner or to any extent the Lien and security interest created and evidenced
hereby upon the Mortgaged Property or any part thereof, or any conveyances,
powers, rights and remedies of Mortgagee hereunder, but such conveyances,
powers, rights and remedies shall continue unimpaired as before.

               3.3.3 Any moneys collected by Mortgagee under this Section 3.3
shall be applied in accordance with the provisions of subsection 3.2.3.

               3.3.4 Mortgagee shall be entitled to exercise all other remedies
permitted by law or equity that Mortgagee is entitled to take with respect to
the Mortgaged Property, including the right to receive payment with respect
thereto.

                                       27

<PAGE>

          SECTION 3.4. Legal Proceedings After an Event of Default.

               3.4.1 After the occurrence of any Event of Default and
immediately upon the commencement of any action, suit or legal proceedings to
obtain judgment for the Secured Obligations or any part thereof, or of any
proceedings to foreclose the Lien and security interest created and evidenced
hereby or otherwise enforce the provisions of this Mortgage or of any other
proceedings in aid of the enforcement of this Mortgage, Mortgagor shall enter
its voluntary appearance in such action, suit or proceeding.

               3.4.2 Upon the occurrence of an Event of Default, Mortgagee shall
be entitled forthwith as a matter of right, concurrently or independently of any
other right or remedy hereunder either before or after declaring the Secured
Obligations or any part thereof to be due and payable, to the appointment of a
receiver or other custodian ex parte and without giving notice to any party and
without regard to the adequacy or inadequacy of any security for the Secured
Obligations or the solvency or insolvency of any person or entity then legally
or equitably liable for the Secured Obligations or any portion thereof.
Mortgagor hereby consents to the appointment of such receiver. Notwithstanding
the appointment of any receiver or other custodian, Mortgagee shall be entitled
as pledgee to the possession and control of any cash, deposits or instruments at
the time held by or payable or deliverable under the terms of the Indenture to
Mortgagee.

               3.4.3 Mortgagor shall not (i) at any time insist upon or plead or
in any manner whatsoever claim or take any benefit or advantage of any stay or
extension or moratorium law, any exemption from execution or sale of the
Mortgaged Property or any part thereof, wherever enacted, now or at any time
hereafter in force, which may affect the covenants and terms of performance of
this Mortgage, (ii) claim, take or insist on any benefit or advantage of any law
now or hereafter in force providing for the valuation or appraisal of the
Mortgaged Property, or any part thereof, prior to any sale or sales of the
Mortgaged Property which may be made pursuant to this Mortgage, or pursuant to
any decree, judgment or order of any court of competent jurisdiction or (iii)
after any such sale or sales, claim or exercise any right under any statute
heretofore or hereafter enacted to redeem the property so sold or any part
thereof. To the extent permitted by applicable law, Mortgagor hereby expressly
(i) waives all benefit or advantage of any such law or laws, including, without
limitation, any statute of limitations applicable to this Mortgage, (ii) waives
and Mortgagee by acceptance of this Mortgage waives any and all rights to trial
by jury in any action or proceeding related to the enforcement of this Mortgage,
(iii) waives any objection which it may now or hereafter have to the laying of
venue of any action, suit or proceeding brought in connection with this Mortgage
in any jurisdiction to which it has consented under the Indenture or any
Security Document and further waives and agrees not to plead that any such
action, suit or proceeding brought in any such jurisdiction has been brought in
an inconvenient forum and (iv) covenants not to delay or impede the execution of
any power granted or delegated to Mortgagee by this Mortgage, but to suffer and
permit the execution of every such power as though no such law or laws had been
made or enacted. Mortgagor, for itself and all who may claim under it, waives
all rights to have the Mortgaged Property marshalled on any foreclosure of this
Mortgage.

          SECTION 3.5. Remedies Not Exclusive.

                                       28

<PAGE>

No remedy conferred upon or reserved to Mortgagee by this Mortgage is intended
to be exclusive of any other remedy or remedies, and each and every such remedy
shall be cumulative and shall be in addition to every other remedy given under
this Mortgage or now or hereafter existing at law or in equity. Any delay or
omission of Mortgagee to exercise any right or power accruing upon the
occurrence of an Event of Default shall not impair any such right or power and
shall not be construed to be a waiver of or acquiescence in any such Event of
Default. Every power and remedy given by this Mortgage may be exercised from
time to time concurrently or independently, when and as often as may be deemed
expedient by Mortgagee in such order and manner as Mortgagee, in its sole
discretion, may elect. If Mortgagee accepts any moneys required to be paid by
Mortgagor under this Mortgage after the same become due, such acceptance shall
not constitute a waiver of the right either to require prompt payment, when due,
of all other sums secured by this Mortgage or to declare an Event of Default
with regard to subsequent defaults. If Mortgagee accepts any moneys required to
be paid by Mortgagor under this Mortgage in an amount less than the sum then
due, such acceptance shall be deemed an acceptance on account only and on the
condition that it shall not constitute a waiver of the obligation of Mortgagor
to pay the entire sum then due, and Mortgagor's failure to pay the entire sum
then due shall be and continue to be a default hereunder notwithstanding
acceptance of such amount on account.

                                   ARTICLE IV

                               CERTAIN DEFINITIONS

          The following terms shall have the following respective meanings:

          "Additional Undertaking" means (a) cash or Cash Equivalents or (b) a
Surety Bond, Guaranty or Letter of Credit which is (i) provided by a Person,
(ii) whose long-term unsecured debt is rated at least AA (or equivalent) and
(iii) is otherwise satisfactory to Mortgagee. Additional Undertakings shall be
addressed directly to Mortgagee and shall name Mortgagee as the beneficiary
thereof and the party entitled to make claims thereunder.

          "Cost of Construction" means the sum, so far as it relates to the
reconstructing, renewing, restoring or replacing of the Improvements, of (i)
obligations incurred or assumed by Mortgagor or undertaken by tenants pursuant
to the terms of the Leases for labor, materials and other expenses and to
contractors, builders and materialmen; (ii) the cost of contract bonds and of
insurance of all kinds that may reasonably be deemed by Mortgagor to be
necessary during the course of construction; (iii) the expenses incurred or
assumed by Mortgagor (or tenant under the Lease performing such Restoration) for
test borings, surveys, estimates, permits, any Plans and Specifications and
preliminary investigations therefor, and for supervising construction, as well
as for the performance of all other duties required by or reasonably necessary
for proper construction; (iv) ad valorem property taxes levied upon the Premises
during performance of any Restoration; (v) any costs or other charges in
connection with obtaining title insurance and counsel opinions that may be
required or necessary in connection with a Restoration; and (vi) any costs or
other charges in connection with obtaining services (including legal counsel)
that may reasonably be deemed by Mortgagor to be necessary in connection with
the construction.

                                       29

<PAGE>

          "Force Majeure" means any acts of God, fires, explosions, floods,
epidemic, abnormal storms, acts of a public enemy, wars, blockades, riots,
rebellions, sabotage, insurrections, restraints of government or civil
disturbances, national, regional or local labor strikes, work stoppages,
boycotts, walkouts or other labor disputes, but only to the extent that any such
act, event or circumstances (i) is beyond the reasonable control of Mortgagor,
and (ii) is reasonably unforeseen.

          "Letter of Credit" means a clean, irrevocable, unconditional letter of
credit in favor of Mortgagee and entitling Mortgagee to draw thereon in The City
of New York issued by a bank with a letter of credit evaluation determined by
each Rating Agency, at the time such letter of credit is delivered, in one of
the three highest generic rating categories of such Rating Agency.

          "Rating Agency" means Standard & Poor's Rating Services, if such
Person shall then be rating corporate obligations, and Moody's Investors
Service, Inc., if such Person shall then be rating corporate obligations, or, if
neither such Person shall be rating corporate obligations, then any other
organization of generally recognized standing, selected by Mortgagee.

          "rated or rating" in connection with long-term unsecured debt, means
that the Person in question has, or has been determined to be qualified for, the
rating in question by the Rating Agency.

          "Surety Bond" means a clean irrevocable surety bond or credit
insurance policy in favor of Mortgagee issued by an insurance company the claims
paying ability rating of which at the time such surety bond or credit insurance
policy is delivered is in one of the three highest generic rating categories of
each Rating Agency.

                                    ARTICLE V

                                  MISCELLANEOUS

          SECTION 5.1. Severability. In the event any one or more of the
provisions contained in this Mortgage shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Mortgage, but this
Mortgage shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein or therein. The invalidity of any
provision of this Mortgage in any one jurisdiction shall not affect or impair in
any manner the validity of such provision in any other jurisdiction.

          SECTION 5.2. Notices. Unless otherwise provided herein or in the
Indenture, any notice or other communication herein shall be given in the manner
and at the address set forth in the Indenture, or as to any party at such other
address as shall be designated by such party in a written notice to the other
party.

          SECTION 5.3. Covenants To Run with the Land. All of the grants,
covenants, terms, provisions and conditions in this Mortgage shall run with the
land and shall apply to and bind the successors and assigns of Mortgagor.

                                       30

<PAGE>

          SECTION 5.4. Captions; Gender and Number. The captions and section
headings of this Mortgage are for convenience only and are not to be used to
define the provisions hereof. All terms contained herein shall be construed,
whenever the context of this Mortgage requires, so that the singular includes
the plural and so that the masculine includes the feminine.

          SECTION 5.5. Limitation on Interest Payable. It is the intention of
the parties to conform strictly to the usury laws, whether state or federal,
that are applicable to the transaction of which this Mortgage is a part. All
agreements between Mortgagor and the Mortgagee, whether now existing or
hereafter arising and whether oral or written, are hereby expressly limited so
that in no contingency or event whatsoever shall the amount paid or agreed to be
paid by Mortgagor for the use, forbearance or detention of the money to be
loaned or advanced under the Indenture or any related document, or for the
payment or performance of any covenant or obligation contained herein or in the
Indenture, exceed the maximum amount permissible under applicable federal or
state usury laws. If under any circumstances whatsoever fulfillment of any such
provision, at the time performance of such provision shall be due, shall involve
exceeding the limit of validity prescribed by law, then the obligation to be
fulfilled shall be reduced to the limit of such validity. If under any
circumstances Mortgagor shall have paid an amount deemed interest by applicable
law, which would exceed the highest lawful rate, such amount that would be
excessive interest under applicable usury laws shall be applied to the reduction
of the principal amount owing in respect of the Secured Obligations and not to
the payment of interest, or if such excessive interest exceeds the unpaid
balance of principal and any other amounts due hereunder, the excess shall be
refunded to Mortgagor. All sums paid or agreed to be paid for the use,
forbearance or detention of the principal under any extension of credit or
advancement of funds by Mortgagee shall, to the extent permitted by applicable
law, and to the extent necessary to preclude exceeding the limit of validity
prescribed by law, be amortized, prorated, allocated and spread from the date of
this Mortgage until payment in full of the Secured Obligations so that the
actual rate of interest on account of such principal amounts is uniform
throughout the term hereof.

          SECTION 5.6. Indemnification; Reimbursement. Each and every obligation
of Mortgagor to indemnify and hold harmless the Mortgagee, as collateral agent
under the Intercreditor Agreement, contained in Article III of the Access
Intercreditor Agreement is incorporated herein mutatis mutandis as an obligation
of Mortgagor hereunder to indemnify Mortgagee and the officers, directors,
employees, agents and affiliates of Mortgagee (each, an "Indemnified Party"). In
addition to the foregoing, Mortgagor shall reimburse Mortgagee, within five (5)
Business Days after demand, for all costs and expenses reasonably incurred by
Mortgagee in connection with the administration and enforcement of this
Mortgage, except to the extent any such costs or expenses result from the gross
negligence or willful misconduct of Mortgagee. If any action or proceeding,
including, without limitation, bankruptcy or insolvency proceedings, is
commenced to which action or proceeding Mortgagee is made a party or in which it
becomes necessary to defend or uphold the Lien or validity of this Mortgage,
Mortgagor shall, upon demand, reimburse Mortgagee for all expenses (including,
without limitation, attorneys' and agents' fees and disbursements) reasonably
incurred by Mortgagee in such action or proceeding. In any action or proceeding
to foreclose this Mortgage or to recover or collect the Secured Obligations, the
provisions of law relating to the recovery of costs, disbursements and
allowances shall prevail unaffected by this covenant. Mortgagor's obligations
under this Section

                                       31

<PAGE>

5.6 shall survive the satisfaction of this Mortgage and the discharge of
Mortgagor's other obligations hereunder.

          SECTION 5.7.  Choice of Law. The terms and provisions of this Mortgage
and the enforcement hereof shall be governed by and construed in accordance with
the laws of the state where the Land is located.

          SECTION 5.8.  Changes in Writing. This Mortgage may not be modified,
amended, discharged or waived in whole or in part except by an instrument in
writing executed in accordance with the Indenture and signed by (i) Mortgagor,
to the extent any modification, amendment, discharge or waiver is sought to be
enforced against Mortgagor, and (ii) Mortgagee, in accordance with the
provisions of the Indenture to the extent any modification, amendment, discharge
or waiver is sought to be enforced against Mortgagee.

          SECTION 5.9.  No Merger. The rights and estate created by this
Mortgage shall not, under any circumstances, be held to have merged into any
other estate or interest now owned or hereafter acquired by Mortgagee unless
Mortgagee shall have consented to such merger in writing.

          SECTION 5.10. Concerning Mortgagee.

               5.10.1 Mortgagee shall be entitled to rely upon any written
notice, statement, certificate, order or other document believed by it to be
genuine and correct and to have been signed, sent or made by the proper person,
and, with respect to all matters pertaining to this Mortgage and its duties
hereunder, upon advice of counsel selected by it.

               5.10.2 Mortgagor shall recognize as the mortgagee under this
instrument any party who has succeeded to the interest of Mortgagee under the
Indenture.

               5.10.3 If any item of Mortgaged Property also constitutes
collateral granted to Mortgagee under any other mortgage, security agreement,
pledge or instrument of any type, in the event of any conflict between the
provisions of this Mortgage and the provisions of such other mortgage, security
agreement, pledge or instrument of any type in respect of such collateral,
Mortgagee, in its sole discretion, shall select which provision or provisions
shall control.

               5.10.4 Mortgagee may resign from the performance of all its
functions and duties hereunder at any time by giving ten (10) days' prior
written notice to Mortgagor. Such resignation shall take effect upon the
appointment of a successor Mortgagee pursuant to the provisions of the
Indenture.

               5.10.5 Mortgagee has been appointed as collateral agent pursuant
to the Indenture. The actions of Mortgagee hereunder are subject to the
provisions of the Indenture. Mortgagee shall have the right hereunder to make
demands, to give notices, to exercise or refrain from exercising any rights, and
to take or refrain from taking action (including, without limitation, the
release or substitution of Mortgaged Property), in accordance with this Mortgage
and the Indenture.

                                       32

<PAGE>

          SECTION 5.11. Mortgagee's Right To Sever Indebtedness.

               5.11.1 Mortgagor acknowledges that (a) the Mortgaged Property
does not constitute the sole source of security for the payment and performance
of the Secured Obligations and that the Secured Obligations are also secured by
property of Mortgagor and its affiliates in other jurisdictions (all such
property, collectively, the "Collateral"), (b) the number of such jurisdictions
and the nature of the transaction of which this instrument is a part are such
that it would have been impracticable for the parties to allocate to each item
of Collateral a specific loan amount and to execute in respect of such item a
separate indenture and (c) Mortgagor intends that Mortgagee have the same rights
with respect to the Mortgaged Property, in foreclosure or otherwise, that
Mortgagee would have had if each item of Collateral had been mortgaged or
pledged pursuant to a separate indenture and mortgage or security document. In
furtherance of such intent, Mortgagor agrees that Mortgagee may at any time by
notice (an "Allocation Notice") to Mortgagor allocate a portion (the "Allocated
Indebtedness") of the Secured Obligations to the Mortgaged Property and sever
from the remaining Secured Obligations the Allocated Indebtedness. From and
after the giving of an Allocation Notice with respect to the Mortgaged Property,
the Secured Obligations hereunder shall be limited to the extent set forth in
the Allocation Notice and (as so limited) shall, for all purposes, be construed
as a separate loan obligation of Mortgagor unrelated to the other transactions
contemplated by the Indenture or any document related to either thereof. To the
extent that the proceeds on any foreclosure of the Mortgaged Property shall
exceed the Allocated Indebtedness, such proceeds shall belong to Mortgagor and
shall not be available hereunder to satisfy any Secured Obligations of Mortgagor
other than the Allocated Indebtedness. In any action or proceeding to foreclose
the Lien of this Mortgage or in connection with any power of sale foreclosure or
other remedy exercised under this Mortgage commenced after the giving by
Mortgagee of an Allocation Notice, the Allocation Notice shall be conclusive
proof of the limits of the Secured Obligations hereby secured, and Mortgagor may
introduce, by way of defense or counterclaim, evidence thereof in any such
action or proceeding.

               5.11.2 Mortgagor hereby waives, to the greatest extent permitted
under law, the right to a discharge of any of the Secured Obligations under any
statute or rule of law now or hereafter in effect which provides that
foreclosure of the Lien of this Mortgage or other remedy exercised under this
Mortgage constitutes the exclusive means for satisfaction of the Secured
Obligations or which makes unavailable a deficiency judgment or any subsequent
remedy because Mortgagee elected to proceed with a power of sale foreclosure or
such other remedy or because of any failure by Mortgagee to comply with laws
that prescribe conditions to the entitlement to a deficiency judgment. In the
event that, notwithstanding the foregoing waiver, any court shall for any reason
hold that Mortgagee is not entitled to a deficiency judgment, Mortgagor shall
not (a) introduce in any other jurisdiction such judgment as a defense to
enforcement against Mortgagor of any remedy in the Indenture, any Security
Document or any document related thereto or (b) seek to have such judgment
recognized or entered in any other jurisdiction, and any such judgment shall in
all events be limited in application only to the state or jurisdiction where
rendered.

               5.11.3 In the event any instrument in addition to the Allocation
Notice is necessary to effectuate the provisions of this Section 5.11,
including, without limitation, any amendment to this Mortgage, any substitute
promissory note or affidavit or certificate of any

                                       33

<PAGE>

kind, Mortgagee may execute, deliver or record such instrument as the
attorney-in-fact of Mortgagor in the event that Mortgagor fails to deliver such
instrument within ten (10) days after delivery to Mortgagor of a request
therefor. Such power of attorney is coupled with an interest and is irrevocable.

          SECTION 5.12. Waiver of Stay.

               5.12.1 Mortgagor agrees that in the event that Mortgagor or any
property or assets of Mortgagor shall hereafter become the subject of a
voluntary or involuntary proceeding under the Bankruptcy Code or Mortgagor shall
otherwise be a party to any federal or state bankruptcy, insolvency, moratorium
or similar proceeding to which the provisions relating to the automatic stay
under Section 362 of the Bankruptcy Code or any similar provision in any such
law is applicable, then, in any such case, whether or not Mortgagee has
commenced foreclosure proceedings under this Mortgage, Mortgagee shall be
entitled to relief from any such automatic stay as it relates to the exercise of
any of the rights and remedies (including, without limitation, any foreclosure
proceedings) available to Mortgagee as provided in this Mortgage or in any other
document evidencing or securing the Secured Obligations.

               5.12.2 Mortgagee shall have the right to petition or move any
court having jurisdiction over any proceeding described in subsection 5.12.1 for
the purposes provided therein, and Mortgagor agrees, to the extent permitted by
law, (i) not to oppose any such petition or motion and, (ii) at Mortgagor's sole
cost and expense, to assist and cooperate with Mortgagee, as may be requested by
Mortgagee from time to time, in obtaining any relief requested by Mortgagee,
including, without limitation, by filing any such petitions, supplemental
petitions, requests for relief, documents, instruments or other items from time
to time requested by Mortgagee or any such court.

          SECTION 5.13. No Credit for Payment of Taxes or Impositions. Mortgagor
shall not be entitled to any credit against the principal, premium, if any, or
interest payable on the Notes, and Mortgagor shall not be entitled to any credit
against any other sums which may become payable under the terms thereof or
hereof by reason of the payment of any tax or other impositions on the Mortgaged
Property or any part thereof.

          SECTION 5.14. Stamp and Other Taxes. Subject to the provisions of
subsection 1.5.5 relating to permitted contests, Mortgagor shall pay any United
States documentary stamp taxes, with interest and fines and penalties, and any
mortgage recording taxes or fees, with interest and fines and penalties, that
may hereafter be levied, imposed or assessed under or upon or by reason of this
Mortgage or the Secured Obligations or any instrument or transaction affecting
or relating to either thereof and in default thereof Mortgagee may advance the
same and the amount so advanced shall be payable by Mortgagor to Mortgagee
within ten (10) days after demand therefor, together with interest thereon at
the Default Rate.

          SECTION 5.15. Estoppel Certificates. Each party hereto shall, from
time to time, upon twenty (20) days' prior written request by the other party,
execute, acknowledge and deliver to such other party a certificate signed by an
authorized officer or officers stating that this Mortgage and the other
Indenture Documents are unmodified and in full force and effect (or, if there
have been modifications, that this Mortgage and such other Indenture Documents,
as

                                       34

<PAGE>

applicable, are in full force and effect as modified and setting forth such
modifications) and stating the date to which payments have been made in respect
of the Secured Obligations.

          SECTION 5.16. Additional Security. Without notice to or consent of
Mortgagor and without impairment of the Lien and rights created by this
Mortgage, Mortgagee may accept (but Mortgagor shall not be obligated to furnish)
from Mortgagor or from any other Person or Persons, additional security for the
Secured Obligations. Neither the giving of this Mortgage nor the acceptance of
any such additional security shall prevent Mortgagee from resorting, first, to
such additional security, and, second, to the security created by this Mortgage
without affecting Mortgagee's Lien and rights under this Mortgage.

          SECTION 5.17. Release. The Lien of this Mortgage shall be released
from the Mortgaged Property or any portion thereof in accordance with the
provisions of the Indenture, including, without limitation, Section 11.3(b)
thereof. Mortgagee, on the written request and at the expense of Mortgagor, will
execute and deliver such proper instruments of release and satisfaction or
assignment as may reasonably be requested to evidence such release or
assignment, and any such instrument, when duly executed by Mortgagee and duly
recorded by Mortgagor in the places where this Mortgage is recorded, shall
conclusively evidence the partial release, release or assignment of this
Mortgage.

          SECTION 5.18. Expenses of Collection. In the event this Mortgage or
any other instrument evidencing the Secured Obligations is placed in the hands
of counsel for collection of any amount payable hereunder or thereunder or for
the enforcement of any of the provisions hereof or thereof, Mortgagor agrees to
pay all reasonable costs associated therewith incurred by Mortgagee, either with
or without the institution of an action, suit or other proceeding, in addition
to all costs, disbursements and allowances provided by law, all such costs to be
paid upon demand, together with interest thereon at the Default Rate from the
date of notice or incurring thereof, and the same shall be deemed to be secured
hereby.

          SECTION 5.19. Business Days. In the event any time period or any date
provided in this Mortgage ends or falls on a day other than a Business Day, then
such time period shall be deemed to end and such date shall be deemed to fall on
the next succeeding Business Day, and performance herein may be made on such
Business Day, with the same force and effect as if made on such other day.

                                       35

<PAGE>

IN WITNESS WHEREOF, the undersigned has executed the foregoing on the day and
year first above written.

Signed and acknowledged               REPUBLIC ENGINEERED PRODUCTS
in the presence of:                   LLC, a Delaware limited liability company

Sign:  /s/ Felicia Renee Durkin        By:  /s/ Michael Psaros
     ----------------------------         --------------------------------------
Print:     Felicia Renee Durkin           Name: Michael Psaros
      ---------------------------         Title: President

Sign:  /s/ Talley Williams
     ----------------------------
Print:     Talley Williams
      ---------------------------

                                       36

<PAGE>

STATE OF NEW YORK

COUNTY OF NEW YORK

         On the 16th of August, 2002, before me the undersigned, a Notary Public
in and for said state, personally appeared Michael Psaros, personally known to
me or proved to me on the basis of satisfactory evidence to be the person whose
name is subscribed to the within instrument and acknowledged to me that he
executed the same in his capacity and that by his signature on the instrument,
the person or the entity upon behalf of which the person acted, executed the
instrument.

                                                           /s/ Thaina Lesperance
                                                           ---------------------

<PAGE>

                                   SCHEDULE A

                                LEGAL DESCRIPTION

<PAGE>

Legal Description of                                           REW Job No. 27502
Republic Technologies International                                      7/10/02
Parcel 1 - 435.3737 Acres                                            Page 1 of 9
--------------------------------------------------------------------------------

     Situated in the City of Lorain, County of Lorain, State of Ohio, and being
further known as parts of Original Lots 85, 86, 87, 88, 89, 90, 91 and 92 in
Sheffield Township and Original Lot 93 in Black River Township, and further
bounded and described as follows:

     Commencing at the intersection of the centerline of Grove Avenue and East
28th Street in accordance to Sheffield Land & Improvement Company Subdivision
No. 4 as recorded in Volume 6, Page 3 of the Lorain County Plat Records; Thence
North 1(degree)10'00" West a distance of 299.00 feet along the centerline of
Grove Avenue as shown by said plat, and the northerly extension thereof, to a PK
nail; Thence North 88(degree)50'00" East a distance of 2960.86 feet to USX
Monument no. 47; Thence North 1(degree)10'00" West a distance of 168.88 feet to
a 1/2" diameter iron pin set in the northerly line of land owned by Lake
Terminal Railroad as recorded in Volume 262, Page 419 and Volume 589, Page 167;
thence South 88(degree)50'00" West a distance of 353.30 feet along the northerly
line of said Lake Terminal Railroad's land; thence North 73(degree)29'00" West a
distance of 217.61 feet along the northerly line of said Lake Terminal
Railroad's land; thence South 88(degree)50'00" West a distance of 481.97 feet
along said Lake Terminal Railroad's northerly line; thence South
01(degree)10'00" East a distance of 4.64 feet along said Lake Terminal
Railroad's westerly line; thence South 88(degree)50'00" West a distance of
889.02 feet along said Lake Terminal Railroad's northerly line; thence North
01(degree)10'00" West a distance of 4.64 feet along said Lake Terminal
Railroad's northerly line; thence South 88(degree)50'00" West a distance of
1361.95 feet along said Lake Terminal Railroad's northerly line; thence North
83(degree)00'00" West a distance of 479.78 feet along said Lake Terminal
Railroad's northerly line and being the Principal Point of Beginning;

1.   Thence continuing North 83(degree)00'00" West along said Lake Terminal
     Railroad's northerly line 168.44 feet to a capped iron pin set;

2.   Thence North 01(degree)10'00" West a distance of 127.92 feet along said
     Lake Terminal Railroad's easterly line to a capped iron pin set;

3.   Thence South 88(degree)50'00" West a distance of 886.01 feet along said
     Lake Terminal Railroad's northerly line to a capped iron pin set;

4.   Thence South 22(degree)25'30" East a distance of 107.42 feet along said
     Lake Terminal Railroad's westerly line to a capped iron pin set;

5.   Thence South 88(degree)50'00" West a distance of 230.32 feet along said
     Lake Terminal Railroad's northerly line to a capped iron pin set;

6.   Thence South 63(degree)01'09" West a distance of 241.40 feet to a capped
     iron pin set;

7.   Thence South 01(degree)10'00" East a distance of 14.88 feet along said Lake
     Terminal Railroad's westerly line to a capped iron pin set;

8.   Thence South 88(degree)50'00" West a distance of 589.60 feet along said
     Lake Terminal Railroad's northerly line to a capped iron pin set;

9.   Thence South 80(degree)37'53" West a distance of 1121.52 feet along said
     Lake Terminal Railroad's northerly line to a capped iron pin set;

<PAGE>

Legal Description of                                           REW Job No. 27502
Republic Technologies International                                      7/10/02
Parcel 1 - 435.3737 Acres                                            Page 2 of 9
--------------------------------------------------------------------------------

10.  Thence South 80(degree)40'00" West a distance of 56.88 feet along said Lake
     Terminal Railroad's northerly line to a capped iron pin set;

11.  Thence South 88(degree)50'00" West a distance of 100.00 feet along said
     Lake Terminal Railroad's northerly line to a capped iron pin set;

12.  Thence South 01(degree)10'00" East a distance of 13.92 feet to a capped
     iron pin set;

13.  Thence South 88(degree)50'00" West a distance of 522.44 feet to a capped
     iron pin set;

14.  Thence South 87(degree)02'43" West a distance of 205.12 feet to a capped
     iron pin set;

15.  Thence South 88(degree)51'11" West a distance of 1446.49 feet to a capped
     iron pin set;

16.  Thence South 89(degree)31'30" West a distance of 207.07 feet to a capped
     iron pin set;

17.  Thence along a curve to a right having a radius of 485.00 feet, a central
     angle of 26(degree)49'09", a curve length of 227.02 feet and chord bearing
     North 77(degree)45'26" West a distance of 224.95 feet to a capped iron pin
     set;

18.  Thence North 64(degree)20'52" West a distance of 62.31 feet to a capped
     iron pin set in the northerly line of said Lake Terminal Railroad's land;

19.  Thence along the following courses along said Lake Terminal Railroad's
     land, North 78(degree)49'30" West a distance of 136.47 feet to a capped
     iron pin set;

20.  Thence North 69(degree)02'30" West a distance of 72.50 feet to a capped
     iron pin set;

21.  Thence North 72(degree)11'30" West a distance of 127.50 feet to a capped
     iron pin set;

22.  Thence North 78(degree)59'00" West a distance of 71.02 feet to a capped
     iron pin set;

23.  Thence North 84(degree)43'00" West a distance of 76.10 feet to a capped
     iron pin set;

24.  Thence South 89(degree)27'30" West a distance of 222.25 feet to a capped
     iron pin set;

25.  Thence South 89(degree)09'00" West a distance of 207.37 feet to a capped
     iron pin set;

26.  Thence South 88(degree)49'30" West a distance of 417.59 feet to a capped
     iron pin set;

27.  Thence South 85(degree)14'00" West a distance of 146.92 feet to a capped
     iron pin set;

28.  Thence South 01(degree)10'00" East a distance of 131.39 feet to a capped
     iron pin set into said Lake Terminal Railroad's land;

29.  Thence South 80(degree)42'26" West a distance of 95.16 feet to a capped
     iron pin set;

30.  Thence South 84(degree)33'48" West a distance of 131.94 feet to a capped
     iron pin set;

<PAGE>

Legal Description of                                           REW Job No. 27502
Republic Technologies International                                      7/10/02
Parcel 1 - 435.3737 Acres                                            Page 3 of 9
--------------------------------------------------------------------------------

31.  Thence South 88(degree)47'54" West a distance of 750.87 feet to a capped
     iron pin set;

32.  Thence South 88(degree)52'50" West a distance of 292.89 feet to a capped
     iron pin set;

33.  Thence North 01(degree)07'05" West a distance of 5.00 feet to a capped iron
     pin set;

34.  Thence along a curve to the right having a radius of 685.00 feet, a central
     angle of 53(degree)23'50", a curve length of 638.39 feet and a chord
     bearing North 64(degree)25'11" West a distance of 615.54 feet to a capped
     iron pin set;

35.  Thence along a curve to the left having a radius of 515.00 feet, a central
     angle of 36(degree)41'22", a curve length of 329.78 feet and a chord
     bearing South 72(degree)09'38" East a distance of 324.17 feet to a capped
     iron pin set;

36.  Thence North 89(degree)29'42" East a distance of 58.24 feet to a capped
     iron pin set in the easterly line of said Lake Terminal Railroad's land;

37.  Thence North 33(degree)36'47" West a distance of 35.81 feet along said Lake
     Terminal Railroad's easterly line to a capped iron pin set;

38.  Thence South 89(degree)29'42" West a distance of 38.68 feet into said Lake
     Terminal Railroad's land to a capped iron pin set;

39.  Thence along a curve to the right having a radius of 485.00 feet, a central
     angle of 56(degree)55'34", a curve length of 481.87 feet and a chord
     bearing North 62(degree)02'32" West a distance of 462.29 feet to a capped
     iron pin set;

40.  Thence North 33(degree)34'46" West a distance of 330.88 feet to a capped
     iron pin set;

41.  Thence along a curve to the left having a radius of 1500.00 feet, a central
     angle of 09(degree)08'14", a curve length of 239.21 feet and a chord
     bearing North 38(degree)08'53" West a distance of 238.96 feet to a capped
     iron pin set;

42.  Thence North 42(degree)43'00" West a distance of 303.71 feet to a capped
     iron pin set;

43.  Thence North 41(degree)47'03" West a distance of 182.02 feet to a capped
     iron pin set;

44.  Thence North 00(degree)58'20" East a distance of 162.42 feet to a capped
     iron pin set;

45.  Thence South 89(degree)11'13" East a distance of 306.62 feet to a capped
     iron pin set in the easterly line of said Lake Terminal Railroad's land;

46.  Thence North 33(degree)36'47" West a distance of 36.37 feet to along the
     easterly line of said Lake Terminal Railroad's land to a capped iron pin
     set;

47.  Thence North 89(degree)11'13" West a distance of 123.90 feet into said Lake
     Terminal Railroad's land to a capped iron pin set;.

<PAGE>

Legal Description of                                           REW Job No. 27502
Republic Technologies International                                      7/10/02
Parcel 1 - 435.3737 Acres                                            Page 4 of 9
--------------------------------------------------------------------------------

48.  Thence along a curve to the right having a radius of 345.00 feet, a central
     angle of 27(degree)59'55", a curve length of 168.59 feet and a chord
     bearing North 75(degree)11'16" West a distance of 166.92 feet to a capped
     iron pin set;

49.  Thence North 00(degree)59'07" East a distance of 341.50 feet to a capped
     iron pin set;

50.  Thence North 88(degree)26'26" West a distance of 346.42 feet to a capped
     iron pin set;

51.  Thence North 00(degree)59'07" East a distance of 60.00 feet to a capped
     iron pin set in the southerly right of way line of East 21st Street to a
     capped iron pin set;

52.  Thence South 88(degree)26'26" East along the Southerly line of said East
     21st Street, said line also being a Northerly line of land conveyed to USX
     Corporation, Parcel LTUSX-09, by deed recorded in O.R. Volume 191, Page 242
     of Lorain County Records, 240.23 feet to a point of intersection with the
     Southerly prolongation of the Westerly line of land conveyed to National
     Tube Company, Parcel No. 1, by deed recorded in Volume 262, Pages 400-428
     of Lorain County Records;

53.  Thence North 01(degree)02'31" East along said prolongation line 32.00 feet
     to a capped iron pin set;

54.  Thence South 89(degree)39'42" East 90.11 feet to a capped iron pin set;

55.  Thence South 89(degree)39'46" East 42.97 feet to a capped iron pin set;

56.  Thence North 86(degree)53'18" East 27.38 feet to a capped iron pin set;

57.  Thence South 54(degree)15'05" East 39.82 feet to a capped iron pin set;

58.  Thence North 57(degree)15'18" East 90.19 feet to a capped iron pin set;

59.  Thence South 61(degree)04'51" East 720.38 feet to a capped iron pin set;

60.  Thence North 75(degree)39'53" East 189.58 feet to a capped iron pin set;

61.  Thence South 62(degree)38'55" East 79.76 feet to a capped iron pin set;

62.  Thence South 71(degree)39'50" East 59.74 feet to a capped iron pin set;

63.  Thence North 77(degree)20'58" East 155.13 feet to a capped iron pin set;

64.  Thence North 41(degree)23'14" East 200.67 feet to a capped iron pin set;

65.  Thence North 39(degree)40'15" East 119.06 feet to a capped iron pin set;

66.  Thence North 36(degree)49'20" East 240.28 feet to a capped iron pin set;

67.  Thence North 36(degree)49'21" East 109.87 feet to a point in the Black
     River and being the point of curvature of a non-tangent curve, concave to
     the north, having a radius of

<PAGE>

Legal Description of                                           REW Job No. 27502
Republic Technologies International                                      7/10/02
Parcel 1 - 435.3737 Acres                                            Page 5 of 9
--------------------------------------------------------------------------------

     1259.09 feet, a central angle of 44(degree)50'23", and a chord of 960.41
     feet bearing South 79(degree)20'09" East;

68.  Thence easterly along said curve 985.36 feet to a point in the Black River
     and being the point of curvature of a compound curve to the to the left
     having a radius of 1400.00 feet, a central angle of 41(degree)05'19", and a
     chord of 982.61 feet bearing North 57(degree)42'00" East;

69.  Thence northeasterly along said curve 1003.99 feet to a point in the Black
     River, and being the point of curvature of a compound curve to the left
     having a radius of 1530.56 feet, a central angle of 12(degree)25'38", and a
     chord of 331.32 feet bearing North 30(degree)56'31" East;

70.  Thence northeasterly along said curve 331.97 feet to a point in the Black
     River;

71.  Thence North 23(degree)21'59" East 202.86 feet to a point in the Black
     River;

72.  Thence South 65(degree)11'51" East 32.25 feet to a capped iron pin set;

73.  Thence South 65(degree)11'54" East 306.91 feet to a capped iron pin set;

74.  Thence South 56(degree)22'25" East 450.04 feet to a capped iron pin set;

75.  Thence South 27(degree)21'43" East 582.67 feet to a capped iron pin set;

76.  Thence South 33(degree)28'50" East 416.16 feet to a capped iron pin set;

77.  Thence North 88(degree)48'37" East 363.59 feet to a capped iron pin set;

78.  Thence South 1(degree)03'31" East 155.60 feet to a capped iron pin set;

79.  Thence North 88(degree)48'47" East 2332.84 feet to a capped iron pin set;

80.  Thence North 80(degree)26'54" East 720.72 feet to a capped iron pin set;

81.  Thence North 23(degree)48'24" West 907.72 feet to a capped iron pin set;

82.  Thence North 20(degree)53'34" West 159.95 feet to a capped iron pin set;

83.  Thence North 0(degree)37'56" East 235.69 feet to a drill hole set in the
     southerly end of a concrete storm wingwall;

84.  Thence North 1(degree)19'53" West along said wingwall and its northerly
     projection 49.80 feet to a capped iron pin set;

85.  Thence North 87(degree)05'27" West being approximately five feet southerly
     of an overhead electric line 216.20 feet to a PK nail set in the top of a
     stone wall;

<PAGE>

Legal Description of                                           REW Job No. 27502
Republic Technologies International                                      7/10/02
Parcel 1 - 435.3737 Acres                                            Page 6 of 9
--------------------------------------------------------------------------------

86.  Thence South 69(degree)54'06" West along said wall and its southwesterly
     projection, passing thru a PK nail set in the top of said wall 5.77 feet
     northeasterly from this course's terminal point 144.83 feet to a capped
     iron pin set;

87.  Thence North 20(degree)35'45" West in the southerly projection of a second
     stonewall and along said second stone wall 294.97 feet to a point in the
     Black River;

88.  Thence North 63(degree)42'04" East 200.05 feet to a point in the Black
     River;

89.  Thence South 19(degree)15'10" East parallel with and approximately 13 feet
     easterly of the top of a sloped concrete wall, and running in a small
     un-named stream, 185.89 feet to a capped iron pin set at an angle point in
     said stream;

90.  Thence North 83(degree)24'16" East 373.97 feet to a capped iron pin set;

91.  Thence South 21(degree)25'45" East 60.65 feet to a capped iron pin set on
     the northerly line of a remainder parcel of LAND OWNED BY THE LAKE TERMINAL
     RAILROAD COMPANY, WHICH IS COMPRISED OF (I) THE REMAINDER OF LAND CONVEYED
     TO LAKE TERMINAL RAILROAD COMPANY BY DEED RECORDED IN VOLUME 589, PAGE 167
     OF LORAIN COUNTY DEED RECORDS; (II) THE REMAINDER OF LAND CONVEYED TO LAKE
     TERMINAL RAILROAD COMPANY BY DEED RECORDED IN VOLUME 262; PAGE 414 THRU 419
     OF LORAIN COUNTY DEED RECORDS; (III) A PARCEL OF LAND CONVEYED TO LAKE
     TERMINAL RAILROAD COMPANY BY USX CORPORATION CONSISTING OF 0.05471 ACRES
     (801-TRACK) RECORDED IN O.R. VOLUME 191, PAGE 349; AND (IV) A PARCEL OF
     LAND CONVEYED TO LAKE TERMINAL RAILROAD COMPANY BY USX CORPORATION
     CONSISTING OF 0.01253 ACRES (801?YARD) RECORDED IN ORIGINAL RECORD VOLUME
     191, PAGE 343 OF LORAIN COUNTY DEED RECORDS.;

     Thence the following 16 courses along the northerly, westerly, southerly
     and easterly sides of said Lake Terminal Railroad Company lands;

92.  Thence South 68(degree)34'15" West 170.15 feet to a capped iron pin set;

93.  Thence South 21(degree)35'30" East 30.00 feet to a capped iron pin set;

94.  Thence North 68(degree)34'15" East 369.22 feet to a capped iron pin set to
     the point of curvature of a tangent curve to the to the left, having a
     radius of 337.87 feet and a central angle of 60(degree)33'01" and a chord
     of 340.68 feet bearing North 38(degree)17'44" East;

95.  Thence northeasterly along said curve 357.06 feet;

96.  Thence North 8(degree)01'39" East 209.20 feet to a capped iron pin set to
     the point of curvature of a non-tangent curve, concave to the east, having
     a radius of 360.00 feet, a central angle of 23(degree)36'52", and a chord
     of 147.33 feet bearing North 19(degree)49'43" East;

97.  Thence northerly along said curve 148.37 feet;

<PAGE>

Legal Description of                                           REW Job No. 27502
Republic Technologies International                                      7/10/02
Parcel 1 - 435.3737 Acres                                            Page 7 of 9
--------------------------------------------------------------------------------

98.    Thence North 31(degree)38'09" East 69.07 feet to a capped iron pin set to
       the point of curvature of a non-tangent curve, concave to the southeast,
       having a radius of 370.00 feet, a central angle of 56(degree)17'01", and
       a chord of 349.03 feet bearing North 59(degree)46'08" East;

99.    Thence northeasterly along said curve 363.47 feet;

100.   Thence South 70(degree)54'13" East 1.77 feet to a capped iron pin set;

101.   Thence North 88(degree)50'02" East 711.58 feet to a capped iron pin set
       to the point of curvature of a non-tangent curve, concave to the south,
       having a radius of 410.00 feet, a central angle of 21(degree)54'10", and
       a chord of 155.78 feet bearing South 80(degree)12'55" East;

102.   Thence easterly along said curve 156.73 feet;

103.   Thence South 69(degree)15'50" East 113.88 feet to a capped iron pin set
       to the point of curvature of a tangent curve to the to the right, having
       a radius of 410.00 feet and a central angle of 48(degree)05'50" and a
       chord of 334.16 feet bearing South 45(degree)12'55" East;

104.   Thence southeasterly along said curve 344.18 feet;

105.   Thence South 21(degree)10'00" East 50.00 feet to a capped iron pin set;

106.   Thence South 15(degree)08'17" East 190.43 feet to a capped iron pin set;

107.   Thence South 21(degree)10'00" East 32.19 feet to a capped iron pin set;

108.   Thence South 68(degree)50'17" West departing said Lake Terminal Railroad
       Company's land 0.84 foot to a capped iron pin set;

109.   Thence North 21(degree)11'20" West 80.65 feet to a capped iron pin set;

110.   Thence North 21(degree)13'12" West 52.54 feet to a capped iron pin set;

111.   Thence North 21(degree)08'57" West 57.94 feet to a capped Iron pin set;

112.   Thence North 23(degree)00'59" West 140.59 feet to a capped iron pin set;

113.   Thence North 33(degree)08'19" West 44.58 feet to a capped iron pin set,

114.   Thence North 39(degree)56'50" West 50.29 feet to a capped iron pin set;

115.   Thence North 47(degree)46'53" West 53.51 feet to a capped iron pin set;

116.   Thence North 55(degree)53'46" West 62.69 feet to a capped iron pin set;

117.   Thence North 65(degree)47'38" West 61.56 feet to a capped iron pin set;

118.   Thence North 73(degree)32'29" West 77.48 feet to a capped iron pin set;

<PAGE>

Legal Description of                                           REW Job No. 27502
Republic Technologies International                                      7/10/02
Parcel 1 - 435.3737 Acres                                            Page 8 of 9
--------------------------------------------------------------------------------

119.   Thence North 76(degree)44'22" West 83.24 feet to a capped iron pin set;

120.   Thence North 81(degree)57'40" West 45.48 feet to a capped iron pin set;

121.   Thence North 88(degree)04'46" West 56.36 feet to a capped iron pin set to
       the point of curvature of a non-tangent curve, concave to the southeast,
       having a radius of 230.31 feet, a central angle of 16(degree)47'33", and
       a chord of 67.26 feet bearing South 67(degree)10'40" West;

122.   Thence southwesterly along said curve 67.50 feet;

123.   Thence South 58(degree)46'54" West 10.71 feet to a capped iron pin set to
       the point of curvature of a non-tangent curve, concave to the southeast,
       having a radius of 269.14 feet, a central angle of 54(degree)55'02", and
       a chord of 248.21 feet bearing South 31(degree)19'22" West;

124.   Thence southwesterly along said curve 257.97 feet;

125.   Thence South 3(degree)51'51" West 23.90 feet to a capped iron pin set;

126.   Thence South 1(degree)11'20" East 317.18 feet to a capped iron pin set;

127.   Thence North 88(degree)48'40' East 5.55 feet to a capped iron pin set;

128.   Thence South 2(degree)10'14" East 61.89 feet to the point of curvature of
       a non-tangent curve, concave to the east, having a radius of 425.00 feet,
       a central angle of 10(degree)41'58", and a chord of 79.25 feet bearing
       South 10(degree)18'45" East;

129.   Thence southerly along said curve 79.37 feet to the point of curvature of
       a non-tangent curve, concave to the west, having a radius of 415.00 feet,
       a central angle of 19(degree)46'44", and a chord of 142.55 feet bearing
       South 6(degree)36'17" East;

130.   Thence southerly along said curve 143.26 feet;

131.   Thence South 1(degree)06'27" East 335.63 feet;

132.   Thence South 88(degree)52'23" West 39.67 feet;

133.   Thence South 0(degree)39'47" East 161.77 feet to a capped iron pin found;

134.   Thence South 1(degree)49'42" East 95.25 feet to a capped iron pin found;

135.   Thence South 86(degree)53'05" East 33.51 feet to a capped iron pin found;

136.   Thence South 0(degree)53'56" East 729.06 feet to a capped iron pin found;

137.   Thence North 89(degree)14'07" East 85.78 feet to a capped iron pin found;

138.   Thence South 1(degree)08'28" East 53.18 feet to a capped iron pin found;

139.   Thence North 88(degree)57'21" East 11.25 feet to a capped iron pin found;

<PAGE>

Legal Description of                                           REW Job No. 27502
Republic Technologies International                                      7/10/02
Parcel 1 - 435.3737 Acres                                            Page 9 of 9
--------------------------------------------------------------------------------

140.   Thence South 1(degree)09'55" East 181.68 feet to a capped iron pin found;

141.   Thence South 88(degree)23'54" West 65.33 feet to a capped iron pin found;

142.   Thence South 1(degree)11'02" East 82.47 feet to a capped iron pin found;

143.   Thence North 88(degree)54'59" West 24.27 feet to a capped iron pin found;

144.   Thence South 2(degree)48'42" East 316.46 feet to a capped iron pin found;

145.   Thence North 86(degree)40'30" East 14.81 feet to a capped iron pin found;

146.   Thence South 1(degree)55'06" East 21.15 feet to a capped iron pin found;

147.   Thence South 87(degree)11'22" West 14.48 feet to a capped iron pin found;

148.   Thence South 2(degree)48'48" East 2.16 feet to a capped iron pin found;

149.   Thence South 12(degree)04'28" East 39.53 feet to a capped iron pin found;

150.   Thence North 86(degree)10'47" East 15.70 feet to a capped iron pin found;

151.   Thence South 3(degree)11'57" East 192.74 feet to a capped iron pin found;

152.   Thence South 37(degree)24'02" East 148.36 feet to a capped iron pin
       found;

153.   Thence South 0(degree)28'00" East 6.63 feet to a capped iron pin found;

154.   Thence North 88(degree)45'33" East 409.24 feet to a capped iron pin
       found;

155.   Thence South 0(degree)00'00" East 256.93 feet to a capped iron pin found;

156.   Thence South 0(degree)04'04" West 153.19 feet to the Principal Point of
       Beginning; said described tract containing 435.3737 Acres, more or less.

       The basis of bearings for this description is the centerline of East 28th
Street being North 88(degree)50'00" East. Capped Iron Pin set is a 5/8"x 30"
rebar with yellow "R.E. Warner PS 7055" plastic cap. This description prepared
on June 30, 2002, revised on July 10, 2002 by Michael Straub, P.S. 7055 in the
State of Ohio of R.E. Warner and Associates, Inc., Westlake, Ohio.

<PAGE>

Legal Description of                                           REW Job No. 27502
Parcel 2                                                                 7/10/02
21.9302 Acres                                                        Page 1 of 4
--------------------------------------------------------------------------------

     Situated in the City of Lorain, County of Lorain, State of Ohio, and being
further known as parts of Original Lot Nos. 85, 86, 87, 88, 89, and 90 in
Sheffield Township, bounded and described as follows:

     Commencing at the intersection of the centerline of Pearl Avenue and East
28/th/ Street in accordance to Sheffield Land & Improvement Company Subdivision
No. 2 as recorded in Volume 4, Page 32 of the Lorain County Plat Records; thence
North 1(degree)10'00" West a distance of 40.00 feet to the Principal Place of
Beginning;

1.   Thence South 88(degree)50'00" West a distance of 241.17 feet along the
     northerly line of East 28/th/ Street and the southerly line of Sublots 999
     through 1003 of Sheffield Land & Improvement Company Subdivision No. 2 to a
     capped iron pin set;

2.   Thence North 1(degree)14'20" West 149.86 feet to a capped iron pin set;

3.   Thence South 89(degree)00'37" West 298.64 feet to a capped iron pin set;

4.   Thence South 1(degree)10'00" East 25.79 feet to a capped iron pin set;

5.   Thence South 88(degree)50'00" West a distance of 780.00 feet along the
     northerly line of Sublots No. 980 through 993 and the north end of Globe
     Avenue to a 1/2" diameter iron pin;

6.   Thence North 1(degree)10'00" West a distance of 74.00 feet along the
     easterly line and land owned Roman A. Wlaszyn, to a 1/2" diameter iron pin;

7.   Thence South 88(degree)50'00" West a distance of 450.00 feet along said
     Roman A. Wlaszyn's north line to a 1/2" diameter iron pin;

8.   Thence South 1(degree)10'00" East a distance of 74.00 feet along said Roman
     A. Wlaszyn's west line to a 1/2" diameter iron pin;

9.   Thence South 88(degree)50'00" West a distance of 650.00 feet along the
     north line of Sublots 958 thru 970 to a 1/2" diameter iron pin at the
     northwesterly corner of Sublot No. 958;

10.  Thence North 1(degree)10'00" West a distance of 74.00 feet along the
     westerly line of land owned by USX Corporation and recorded in Deed Volume
     262, Page 400 of the Lorain County Records to a 1/2"diameter iron pin;

11.  Thence South 88(degree)50'00" West a distance of 100.00 feet along the
     southerly line of said USX Corporation land to a 1/2" diameter iron pin;

12.  Thence South 1(degree)10'00" East a distance of 54.00 feet to 1/2" diameter
     iron pin at the northeasterly corner of the end of Vine Avenue;

13.  Thence South 88(degree)50'00" West a distance of 80.00 feet along the
     northerly end of Vine Avenue to a 1/2" diameter iron pin;

<PAGE>

Legal Description of                                           REW Job No. 27502
Parcel 2                                                                 7/10/02
21.9302 Acres                                                        Page 2 of 4
--------------------------------------------------------------------------------

14.  Thence South 1(degree)10'00" East a distance of 145.00 feet to a 1/2"
     diameter iron pin at the southwesterly corner of Sublot No. 1676;

15.  Thence South 88(degree)50'00" West a distance of 250.00 feet along the
     northerly right-of-way line of East 28/th/ Street to a 1/2" diameter iron
     pin at the southeasterly corner of Sublot No. 1681;

16.  Thence North 1(degree)10'00" West a distance of 125.00 feet along the east
     line of Sublot No. 1681 to a 1/2" diameter iron pin at the northeast corner
     of Sublot No. 1681;

17.  Thence South 88(degree)50'00" West a distance of 690.00 feet along the
     north line of Sublots No. 1681 through 1693 to a 1/2" diameter iron pin at
     the southeasterly corner of land owned by Manor Real Estate as recorded in
     Deed Volume 688, Page 588 of the Lorain County Records;

18.  Thence North 1(degree)10'00" West a distance of 134.00 feet along the east
     line of said Manor Real Estate land to a 1/2" diameter iron pin at the
     northeasterly corner of said Manor Real Estate land;

19.  Thence North 88(degree)50'00" East a distance of 225.16 feet along the
     southerly line of land owned by Lake Terminal Railroad as recorded in Deed
     Volume 262, Page 419 of the Lorain County Records to a 1/2" diameter iron
     pin;

20.  Thence North 40(degree)49'13" East a distance of 69.63 feet to a 1/2"
     diameter iron pin;

21.  Thence North 88(degree)50'00" East a distance of 578.96;

22.  Thence North 70(degree)56'39" East a distance of 58.11 feet to a 1/2"
     diameter iron pin;

23.  Thence South 1(degree)10'00" East a distance of 22.60 feet to a 1/2"
     diameter iron pin;

24.  Thence North 88(degree)50'00" East a distance of 23.70 feet to a
     1/2"diameter iron pin;

25.  Thence North 1(degree)10'00" West a distance of 25.50 feet to a 1/2"
     diameter iron pin;

26.  Thence North 88(degree)50'00" East a distance of 63.00 feet to a 1/2"
     diameter iron pin;

27.  Thence South 1(degree)10'00" East a distance of 52.50 feet to a 1/2"
     diameter iron pin;

28.  Thence North 88(degree)50'00" East a distance of 106.00 feet to a 1/2"
     diameter iron pin;

29.  Thence South 15(degree)12'11" East a distance of 20.62 feet to a 1/2"
     diameter iron pin in the southerly line of said Lake Terminal Railroad
     land;

30.  Thence North 88(degree)50'00" East a distance of 5279.67 feet along the
     southerly line of said Lake Terminal Railroad land to a 1/2" diameter iron
     pin;

<PAGE>

Legal Description of                                           REW Job No. 27502
Parcel 2                                                                 7/10/02
21.9302 Acres                                                        Page 3 of 4
--------------------------------------------------------------------------------

31.  Thence North 1(degree)10'00" West a distance of 29.00 feet to a l/2"
     diameter iron pin;

32.  Thence North 88(degree)50'00" East a distance of 159.13 feet along the
     southerly line of said Lake Terminal Railroad land to a 1/2" diameter iron
     pin;

33.  Thence South 1(degree)10'00" East a distance of 29.00 feet to a 1/2"
     diameter iron pin;

34.  Thence North 88(degree)50'00" East a distance of 547.50 feet along the
     southerly line of said Lake Terminal Railroad land to a 1/2" diameter iron
     pin;

35.  Thence South 1(degree)10'00" East a distance of 114.00 feet to a 1/2"
     diameter iron pin;

36.  Thence South 88(degree)50'00" West a distance of 80.00 feet along the
     northerly end of Oakwood Avenue to a 1/2" diameter iron pin;

37.  Thence South 1(degree)10'00" East a distance of 45.00 feet along the
     westerly right-of-way line of Oakwood Avenue to a 1/2" diameter iron pin;

38.  Thence South 88(degree)50'00" West a distance of 150.00 feet through
     Sublots No. 64 & 65 and into Sublot No. 63 to a 1/2" diameter iron pin;

39.  Thence South 1(degree)10'00" East a distance of 100.00 feet to a 1/2"
     diameter iron pin in the northerly right of way of East 28th Street;

40.  Thence South 88(degree)50'00" West a distance of 640.00 feet along the
     northerly right-of-way of East 28/th/ Street to a 1/2" diameter iron pin;

41.  Thence North 1(degree)10'00" West a distance of 199.00 feet through Sublot
     No. 50 to a 1/2" diameter iron pin;

42.  Thence South 88(degree)50'00" West a distance of 1360.00 feet to a 1/2"
     diameter iron pin;

43.  Thence South 1(degree)10'00" East a distance of 64.00 feet to a 1/2"
     diameter iron pin;

44.  Thence South 88(degree)50'00" West a distance of 280.00 feet to a 1/2"
     diameter iron pin;

45.  Thence North 1(degree)10'00" West a distance of 64.00 feet to a 1/2"
     diameter iron pin;

46.  Thence South 88(degree)50'00" West a distance of 200.00 feet to a 1/2"
     diameter iron pin;

47.  Thence South 1(degree)10'00" East a distance of 64.00 feet to a 1/2"
     diameter iron pin;

48.  Thence South 88(degree)50'00" West a distance of 375.00 feet to a 1"
     diameter iron pin in the easterly line of land owned by United States Steel
     Credit Union as recorded in Volume 1110, Page 642, Deed Volume 650, Page
     573 and Volume 868, Page 181, of the Lorain County Records;

<PAGE>

Legal Description of                                           REW Job No. 27502
Parcel 2                                                                 7/10/02
21.9302 Acres                                                        Page 4 of 4
--------------------------------------------------------------------------------

49.  Thence North 1(degree)10'00" West a distance of 64.00 feet along the
     easterly line of said United States Steel Credit Union land to a 1"
     diameter iron pin;

50.  Thence South 88(degree)50'00" West a distance of 125.00 feet along the
     northerly line of said United States Steel Credit Union land to 1"diameter
     iron pin;

51.  Thence South 1(degree)10'00" East 91.01 feet to a capped iron pin set;

52.  Thence South 88(degree)50'00" West 135.19 feet to a capped iron pin set;

53.  Thence North 00(degree)17'28' West 86.01 feet to a capped iron pin set;

54.  Thence South 89(degree)02'40" West 165.76 feet to a capped iron pin set,

55.  Thence South 1(degree)10'00" East 194.60 feet to a capped iron pin set;

56.  Thence South 88(degree)50'00" West 40.00 feet to the Principal Place of
     Beginning; said described tract containing 21.9302 acres, more or less.

     The basis of bearings for this description is the centerline of East 28/th/
Street being North 88(degree)50'00" East. Capped Iron Pin set is a 5/8" x 30"
rebar with yellow "R.E. Warner PS 7055" plastic cap. This description prepared
on June 26, 2002, revised July 10, 2002, by Michael Straub, P.S. 7055 in the
State of Ohio of R.E. Warner & Associates, Inc., Westlake, Ohio.

<PAGE>

Legal Description of                                           REW Job No. 27502
Parcel 3                                                                 7/10/02
0.6199 Acres                                                         Page 1 of 1
--------------------------------------------------------------------------------

     Situated in the City of Lorain, County of Lorain, State of Ohio, and known
as being part of Original Lot 83 of Sheffield Township, and being further
described as follows:

     Commencing at the intersection of the centerline of Grove Avenue and East
28/th/ Street in accordance to Sheffield Land & Improvement Company Subdivision
No. 4 as recorded in Volume 6, Page 3 of the Lorain County Plat Records, thence
North 1(degree)10'00" West a distance of 299.00 feet along the projected
centerline of Grove Avenue to a point in the southerly line of land owned by
Lake Terminal Railroad as recorded in Volume 262, Page 419 of the Lorain County
Deed Records, projected westerly, thence North 88(degree)50'00" East a distance
of 700.27 feet to a capped iron pin and being the Principal Place of Beginning;

1.   Thence North 0(degree)47'43" West 33.00 feet to a capped iron pin set at a
     southwesterly corner of lands of Lake Terminal Railroad as described in
     Deed Volume 262, Page 419, and Deed Volume 589, Page 167 of Lorain County
     Records;

2.   Thence North 88(degree)50'00" East along a southerly line of said Lake
     Terminal Railroad lands 159.13 feet to a capped iron pin set at an angle
     point in said southerly line;

3.   Thence South 1(degree)10'00" East in said Lake Terminal Railroad lands
     33.00 feet to a capped iron pin set at an angle point therein;

4.   Thence North 88(degree)50'00" East in a southerly line of said Lake
     Terminal Railroad lands 2.30 feet to a capped iron pin set;

5.   Thence South 1(degree)20'28" East 134.00 feet to a capped iron pin set in
     the southerly line of those USX Corporation lands described in Deed Volume
     849, Page 472 of Lorain County Records;

6.   Thence South 88(degree)50'00" West in said USX southerly line 162.93 feet
     to a capped iron pin set;

7.   Thence North 0(degree)47'40" West 134.00 feet to the Principal Place of
     Beginning; said described tract containing 0.6199 acre, more or less.

     The basis of bearings for this description is the centerline of East 28th
Street being North 88(degree)50'00" East Capped Iron Pin set is a 5/8"x 30"
rebar with yellow "R.E. Warner PS 7055" plastic cap. This description prepared
on June 27, 2002, revised July 10, 2002, by Michael Straub, P.S. 7055 in the
State of Ohio of R.E. Warner and Associates, Inc., Westlake, Ohio.

<PAGE>

                                   SCHEDULE B

                                   PRIOR LIENS

All those matters disclosed on Schedule B to Chicago Title Insurance Company
Policy No. 22510480 issued August 16, 2002 to LaSalle Bank National Association.

                                       2

<PAGE>

                                 Schedule 1.15.1

                            Environmental Compliance

     Items disclosed on Schedule 1.15.2 are incorporated herein by reference

                                       3

<PAGE>

                                 Schedule 1.15.2

                            Environmental Compliance

Lorain Plant

     4.   The Lorain Plant was the subject of a multimedia inspection by U.S.
          EPA in 1997, when the Plant (together with an adjacent facility not
          owned by Republic Technologies International LLC) was owned by
          USS/KOBE Steel Company. As a result of this inspection, the United
          States alleged violations of the Clean Air Act, Clean Water Act and
          RCRA relating to the Lorain Plant, including the unpermitted
          treatment, storage or disposal of baghouse dust from the #2 Ladle
          Metallurgical Facility. The #2 Ladle Metallurgical Facility is a
          Purchased Asset under the (S) 363 Asset Purchase Agreement.

     5.   The Lorain Plant is the subject of a Consent Order between USS/KOBE
          Steel Company and the United States, effective January 13, 1993,
          resolving the federal government's Clean Air Act claims relating to
          USS/KOBE Steel Company's modernization of the #3 Blast Furnace at the
          Lorain Plant. The #3 Blast Furnace is a Purchased Asset under the (S)
          363 Asset Purchase Agreement. Pursuant to the terms of the Consent
          Order, Republic Technologies International LLC submitted a request to
          modify the Permit to Install for the #3 Blast Furnace to the Ohio
          Environmental Protection Agency. The modification request is currently
          pending, but contemplates imposition of a new limit on carbon monoxide
          emissions from the #3 Blast Furnace stoves (among other revisions
          required by the federal Consent Order).

     6.   Republic Technologies International LLC entered into a Cooperative
          Agreement with the Cities of Elyria, Lorain and North Ridgeville,
          dated June 26, 2000, for the development of a water quality model that
          will evaluate the impact of discharges on dissolved oxygen in the
          lower Black River. The participation of the Sellers (as defined in the
          (S) 363 Asset Purchase Agreement) in the Cooperative Agreement is
          included in the NPDES permit for the Lorain Plant.

     7.   The Lorain Plant includes an emission source that, according to the
          regulatory agencies, may be subject to regulation under the NOx Budget
          Trading Program and the requirement to install a continuous NOx
          emission monitor prior to May 2003. This emission source (a boiler) is
          a Purchased Asset under the (S) 363 Asset Purchase Agreement.

                                       4

<PAGE>

                            Underground Storage Tanks

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
Tank         Location                       Estimated     Construction/Spill          Contents
I.D.                                        Capacity      Containment System
Number                                      (gallons)
---------------------------------------------------------------------------------------------------
<S>          <C>                            <C>           <C>                         <C>
LFU 20       Lorain: Main Garage            10,000        Double wall fiberglass      Gasoline
---------------------------------------------------------------------------------------------------
LFU 21       Lorain: Bar Mill               8,000         Double wall steel           Diesel
---------------------------------------------------------------------------------------------------
LFU 22       Lorain: 21/st/ St. Garage      14,000        Double wall steel           Diesel
---------------------------------------------------------------------------------------------------
</TABLE>

                                        5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]