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                                                                     Exhibit 4.4

                                PLEDGE AGREEMENT

       PLEDGE AGREEMENT (this "Pledge Agreement") is made as of August 16, 2002,
by and among REPUBLIC ENGINEERED PRODUCTS LLC, a Delaware limited liability
partnership (the "Borrower" or a "Pledgor"), BLUE BAR, L.P., a Delaware limited
partnership (the "Parent" or a "Pledgor", and together with the Borrower, the
"Pledgors") and FLEET CAPITAL CORPORATION, a Rhode Island corporation, as
administrative agent (hereinafter in such capacity, the "Administrative Agent")
for itself and the other lending institutions (hereinafter, collectively, the
"Lenders") which are or may become parties to a Revolving Credit Agreement of
even date herewith (as amended and in effect from time to time, the "Credit
Agreement") among the Borrower, the Parent, the Subsidiaries of the Borrower
party thereto, the Lenders, the Administrative Agent and the other parties
thereto.

       WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed, upon
the terms and subject to the conditions contained therein, to make loans and
otherwise extend credit to the Borrower.

       WHEREAS, the Pledgors are the direct legal and beneficial owners of all
of the issued and outstanding capital stock and all of the units of outstanding
membership interests, or other equity interests, as the case may be, of each of
the entities described on Annex A hereto (such entities, collectively, the
"Subsidiaries" and each individually, a "Subsidiary");

       WHEREAS, it is a condition precedent to the Lenders' making any loans or
otherwise extending credit to the Borrower under the Credit Agreement that the
Pledgors execute and deliver to the Administrative Agent, for the benefit of the
Lenders and the Administrative Agent, a pledge agreement in substantially the
form hereof; and

       WHEREAS, each Pledgor wishes to grant pledges and security interests in
favor of the Administrative Agent, for the benefit of the Lenders and the
Administrative Agent, as herein provided;

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

       1. Pledge of Securities, etc.

              1.1. Pledge of Securities. Each Pledgor hereby pledges, assigns,
       grants a security interest in, and delivers to the Administrative Agent,
       for the benefit of the Lenders and the Administrative Agent, all of the
       right, title and interest of such Pledgor in and to all of the shares of
       capital stock, limited liability company membership units or other units
       of equity ownership of every class of each of the Subsidiaries, as more
       fully described on Annex A hereto, including without limitation, with
       respect to any Subsidiary which is a limited liability company (a) all
       payments or distributions, whether in each case, property or otherwise,
       at any

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       time owing or payable to such Pledgor on account of its interest as a
       member, in any of the Subsidiaries, (b) all of such Pledgor's rights and
       interests under the operating agreements, including all voting and
       management rights and all rights to grant or withhold consents or
       approvals, (c) all other rights, interests, property or claims to which
       such Pledgor may be entitled in its capacity as a member of any
       Subsidiary, and (d) all proceeds, income from and increases in and
       products of any of the foregoing to be held by the Administrative Agent
       subject to the terms and conditions hereinafter set forth (the "Pledged
       Interests"). The certificates for such Pledged Interests of the
       Subsidiaries, to the extent that such interests are represented by
       certificates, accompanied by stock powers or other appropriate
       instruments of assignment thereof duly executed in blank by such Pledgor,
       have been delivered to the Administrative Agent. Each Pledgor represents
       and warrants that none of the limited liability company membership units
       owned by such Pledgor are evidenced by any certificate issued by any
       Subsidiary. Each Pledgor further represents and warrants that none of the
       limited liability company membership units owned by the Pledgor issued by
       any Subsidiary is a security governed by Article 8 of the Uniform
       Commercial Code of the jurisdiction in which such Subsidiary is
       organized.

              1.2. Additional Securities. In case any Pledgor shall acquire any
       additional capital stock or other equity interest of any Subsidiary or
       any newly-created or acquired Subsidiary or corporation, partnership,
       limited liability company or other entity that is the successor of any
       Subsidiary, or any securities exchangeable for or convertible into shares
       of such capital stock or other equity interest of any class of any
       Subsidiary, by purchase, stock dividend, stock split or otherwise, then
       such Pledgor shall forthwith pledge such capital stock or other equity
       interests to the Administrative Agent, for the benefit of the Lenders and
       the Administrative Agent, under this Pledge Agreement and shall deliver
       to the Administrative Agent forthwith any certificates therefor,
       accompanied by stock powers or other appropriate instruments of
       assignment duly executed in blank by such Pledgor. Each Pledgor agrees
       that the Administrative Agent may from time to time attach as Annex A
       hereto an updated list of the shares of capital stock or other equity
       interest at the time pledged with the Administrative Agent hereunder.

              1.3. Pledge of Cash Collateral Account. Each Pledgor also hereby
       pledges, assigns, grants a security interest in, and delivers to the
       Administrative Agent, for the benefit of the Lenders and the
       Administrative Agent, the Cash Collateral Account and all of the Cash
       Collateral as such terms are hereinafter defined.

              1.4  Waiver of Certain Operating Agreement Provisions. Each
       Pledgor irrevocably waives any and all of its rights under those
       provisions of the operating agreements of each Subsidiary which is a
       limited liability company that (a) prohibit, restrict, condition or
       otherwise affect the grant hereunder of any Lien on any of the Securities
       Collateral or any enforcement action which may be

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       taken in respect of any such Lien or (b) otherwise conflict with the
       terms of this Pledge Agreement.

       2. Definitions. The term "Obligations" and all other capitalized terms
used herein without definition shall have the respective meanings provided
therefor in the Credit Agreement. Terms used herein and not defined in the
Credit Agreement or otherwise defined herein that are defined in the Uniform
Commercial Code of the State of New York have such defined meanings herein (with
terms used in Article 9 controlling over terms used in another Article), unless
the context otherwise indicated or requires, and the following terms shall have
the following meanings:

       Cash Collateral. See (S)4.

       Cash Collateral Account. See (S)4.

       Securities Act. See (S)7.3.

       Securities. The Pledged Interests and any additional shares of stock,
membership interests or other equity interests at the time pledged with the
Administrative Agent hereunder and the interests described in clauses (a)-(e) of
(S)1.1 of this Pledge Agreement.

       Securities Collateral. The property at any time pledged to the
Administrative Agent hereunder (whether described herein or not) and all income
therefrom, increases therein and proceeds thereof, including without limitation
that included in Cash Collateral, but excluding from the definition of
"Securities Collateral" any income, increases or proceeds received by any
Pledgor to the extent expressly permitted by (S)6.

       Time Deposits. See (S)4.

       3. Security for Obligations. This Pledge Agreement and the security
interest in and pledge of the Securities Collateral hereunder are made with and
granted to the Administrative Agent, for the benefit of the Lenders and the
Administrative Agent, as security for the payment and performance in full of all
the Obligations, including all such Obligations which would become due but for
the operation of the automatic stay pursuant to (S)363(a) of the Federal
Bankruptcy Code and the operation of (S)(S)502(b) and 506(b) of the Federal
Bankruptcy Code.

       4. Liquidation, Recapitalization, etc.

              4.1. Distributions Paid to Administrative Agent. Any sums or other
       property paid or distributed upon or with respect to any of the
       Securities, whether by dividend or redemption or upon the liquidation or
       dissolution of the issuer thereof or otherwise, shall, except to the
       limited extent provided in (S)6, be paid over and delivered to the
       Administrative Agent to be held by the Administrative Agent, as security
       for the payment and performance in full of all of the Obligations. In
       case, pursuant to the recapitalization or reclassification of

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       the capital of the issuer thereof or pursuant to the reorganization
       thereof, any distribution of capital shall be made on or in respect of
       any of the Securities or any property shall be distributed upon or with
       respect to any of the Securities, the property so distributed shall be
       delivered to the Administrative Agent to be held by it as security for
       the Obligations. Except to the limited extent provided in (S)6, all sums
       of money and property paid or distributed in respect of the Securities,
       whether as a dividend or upon such a liquidation, dissolution,
       recapitalization or reclassification or otherwise, that are received by
       such Pledgor shall, until paid or delivered to the Administrative Agent,
       be held in trust for the Administrative Agent, for the benefit of the
       Lenders and the Administrative Agent as security for the payment and
       performance in full of all of the Obligations.

              4.2. Cash Collateral Account. All sums of money that are delivered
       to the Administrative Agent pursuant to this (S)4 shall be deposited into
       an interest bearing account with the Administrative Agent or, if the
       Administrative Agent is not the depositary bank, to an interest bearing
       account in the name of the Administrative Agent, for the benefit of the
       Lenders and the Administrative Agent, as customer with a depositary bank
       satisfactory to the Administrative Agent (any such account, whether
       maintained with the Administrative Agent or in the Administrative Agent's
       name as customer being herein referred to as the "Cash Collateral
       Account"). Some or all of the funds from time to time in the Cash
       Collateral Account may be invested in time deposits, including, without
       limitation, certificates of deposit issued by the Administrative Agent
       (such certificates of deposit or other time deposits being hereinafter
       referred to, collectively, as "Time Deposits"), that are satisfactory to
       the Administrative Agent after consultation with such Pledgor, provided,
       that, in each such case, arrangements satisfactory to the Administrative
       Agent are made and are in place to perfect and to insure the first
       priority of the Administrative Agent's security interest therein.
       Interest earned on the Cash Collateral Account and on the Time Deposits,
       and the principal of the Time Deposits at maturity that is not invested
       in new Time Deposits, shall be deposited in the Cash Collateral Account.
       The Cash Collateral Account, all sums from time to time standing to the
       credit of the Cash Collateral Account, any and all Time Deposits, any and
       all instruments or other writings evidencing Time Deposits and any and
       all proceeds or any thereof are hereinafter referred to as the "Cash
       Collateral."

              4.3. Pledgors' Rights to Cash Collateral, etc. Except as otherwise
       expressly provided in (S)15, no Pledgor shall have any right to withdraw
       sums from the Cash Collateral Account, to receive any of the Cash
       Collateral or to require the Administrative Agent to part with the
       Administrative Agent's possession of any instruments or other writings
       evidencing any Time Deposits.

       5. Warranty of Title; Authority. Each Pledgor hereby represents and
warrants that: (a) such Pledgor has good and marketable title to, and is the
sole record and beneficial owner of, the Securities described in (S)1, free and
clear of pledges, liens,

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security interests, charges, options, restrictions or other encumbrances except
the pledge and security interest created by this Pledge Agreement, (b) all of
the Securities described in (S)1 are validly issued fully paid and
non-assessable, (c) such Pledgor has full power, authority and legal right to
execute, deliver and perform its obligations under this Pledge Agreement and to
pledge and grant a security interest in all of the Securities Collateral
pursuant to this Pledge Agreement, and the execution, delivery and performance
hereof and the pledge of and granting and enforcement (where applicable) of a
security interest in the Securities Collateral hereunder do not contravene any
law, rule or regulation or any judgment, decree or order of any tribunal or of
any agreement or instrument to which such Pledgor is a party or by which it or
any of its property is bound or affected or constitute a default thereunder, and
(d) the information set forth in Annex A hereto relating to the Securities is
true, correct and complete in all respects. Each Pledgor covenants that it will
defend the rights of the Administrative Agent and the Lenders and security
interest of the Administrative Agent, for the benefit of the Lenders and the
Administrative Agent, in such Securities against the claims and demands of all
other persons whomsoever. Each Pledgor further covenants that it will have the
like title to and right to pledge and grant a security interest in the
Securities Collateral hereafter pledged or in which a security interest is
granted to the Administrative Agent hereunder and will likewise defend the
rights, pledge and security interest thereof and therein of the Administrative
Agent.

       6. Dividends, Voting, etc., Prior to Maturity. So long as no Event of
Default shall have occurred and be continuing, each Pledgor shall be entitled to
receive all cash dividends paid in respect of the Securities, to vote the
Securities (subject to the last sentence of this paragraph) and to give
consents, waivers and ratifications in respect of the Securities; provided,
however, that no vote shall be cast or consent, waiver or ratification given by
such Pledgor if the effect thereof would in the reasonable judgment of the
Administrative Agent impair any of the Securities Collateral or be inconsistent
with or result in any violation of any of the provisions of the Credit
Agreement, the Revolving Credit Notes or any of the other Loan Documents. All
such rights of any Pledgor to receive cash dividends shall cease in case an
Event of Default shall have occurred and be continuing. All such rights of any
Pledgor to vote and give consents, waivers and ratifications with respect to the
Securities shall, at the Administrative Agent's option, as evidenced by the
Administrative Agent's written notification to such Pledgor of such election,
cease in case an Event of Default shall have occurred and be continuing.

       7. Remedies.

              7.1. In General. If an Event of Default shall have occurred and be
       continuing, the Administrative Agent shall thereafter have the following
       rights and remedies (to the extent permitted by applicable law) in
       addition to the rights and remedies of a secured party under the Uniform
       Commercial Code of the State of New York, all such rights and remedies
       being cumulative, not exclusive, and enforceable alternatively,
       successively or concurrently, at such time or times as the Administrative
       Agent deems expedient:

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                     (a) if the Administrative Agent so elects and gives notice
              of such election to the applicable Pledgor, the Administrative
              Agent may exercise any management or voting rights relating to the
              Securities (whether or not the same shall have been transferred
              into its name or the name of its nominee or nominees) for any
              lawful purpose, including, without limitation, if the
              Administrative Agent so elects, for the liquidation of the assets
              of the issuer thereof or for the amendment or modification of any
              of the charter, by-laws, operating agreements, partnership
              agreements or other governing documents, and give all consents,
              waivers and ratifications in respect of the Securities and
              otherwise act with respect thereto as though it were the outright
              owner thereof (each Pledgor hereby irrevocably constituting and
              appointing the Administrative Agent the proxy and attorney-in-fact
              of such Pledgor, with full power of substitution, to do so);

                     (b) the Administrative Agent may demand, sue for, collect
              or make any compromise or settlement the Administrative Agent
              deems suitable in respect of any Securities Collateral;

                     (c) the Administrative Agent may sell, resell, assign and
              deliver, or otherwise dispose of any or all of the Securities
              Collateral, for cash or credit or both and upon such terms at such
              place or places, at such time or times and to such entities or
              other persons as the Administrative Agent thinks expedient, all
              without demand for performance by any Pledgor or any notice or
              advertisement whatsoever except as expressly provided herein or as
              may otherwise be required by law;

                     (d) the Administrative Agent may cause all or any part of
              the Securities held by it to be transferred into its name or the
              name of its nominee or nominees; and

                     (e) the Administrative Agent may set off or otherwise apply
              or credit against the Obligations any and all sums deposited with
              it or held by it, including without limitation, any sums standing
              to the credit of the Cash Collateral Account and any Time Deposits
              issued by the Administrative Agent, with any withdrawal penalty
              relating to Time Deposits being an expense of collection.

              7.2. Sale of Securities Collateral. In the event of any sale or
       other disposition of the Securities Collateral as provided in clause (c)
       of ss.7.1 and to the extent that any notice thereof is required to be
       given by law, the Administrative Agent shall give to the Pledgors at
       least ten (10) Business Days' prior authenticated notice of the time and
       place of any public sale or other disposition of the Securities
       Collateral or of the time after which any private sale or any other
       intended disposition is to be made. Each Pledgor hereby acknowledges that
       ten (10) Business Days' prior authenticated notice of such sale or other
       disposition or sales or other dispositions shall be reasonable notice.
       The Administrative Agent

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       may enforce its rights hereunder without any other notice and without
       compliance with any other condition precedent now or hereunder imposed by
       statute, rule of law or otherwise (all of which are hereby expressly
       waived by such Pledgor, to the fullest extent permitted by law). The
       Administrative Agent may, to the extent permitted by applicable law, buy
       or otherwise acquire any part or all of the Securities Collateral at any
       public sale or other disposition and if any part or all of the Securities
       Collateral is of a type customarily sold or otherwise disposed of in a
       recognized market or is of the type which is the subject of
       widely-distributed standard price quotations, the Administrative Agent
       may buy or otherwise acquire at private sale or other disposition and may
       make payments thereof by any means. The Administrative Agent may apply
       the cash proceeds actually received from any sale or other disposition to
       the reasonable expenses of retaking, holding, preparing for sale, selling
       and the like, to reasonable attorneys' fees, travel and all other
       expenses which may be incurred by the Administrative Agent in attempting
       to collect the Obligations or to enforce this Pledge Agreement or in the
       prosecution or defense of any action or proceeding related to the subject
       matter of this Pledge Agreement, and then to the Obligations pursuant to
       (S)13.4 of the Credit Agreement. Only after such applications, and after
       payment from such proceeds of any amount required by (S)9-608(a)(1)(C) or
       (S)9-615(a)(3) of the Uniform Commercial Code of the State of New York,
       need the Administrative Agent account to the Pledgors for any surplus.

              7.3. Private Sales. Each Pledgor recognizes that the
       Administrative Agent may be unable to effect a public sale or other
       disposition of the Securities by reason of certain prohibitions contained
       in the Securities Act, federal banking laws, and other applicable laws,
       and may be compelled to resort to one or more private sales thereof to a
       restricted group of purchasers. Each Pledgor agrees that any such private
       sales may be at prices and other terms less favorable to the seller than
       if sold at public sales and that such private sales shall not by such
       reason thereof be deemed not to have been made in a commercially
       reasonable manner. The Administrative Agent shall be under no obligation
       to delay a sale of any of the Securities for the period of time necessary
       to permit the issuer of such securities to register such securities for
       public sale under the Securities Act, or such other federal banking or
       other applicable laws, even if the issuer would agree to do so. Subject
       to the foregoing, the Administrative Agent agrees that any sale of the
       Securities shall be made in a commercially reasonable manner, and each
       Pledgor agrees to use its best efforts to cause the issuer or issuers of
       the Securities contemplated to be sold, to execute and deliver, and cause
       the directors (or other analogous persons) and officers of such issuer to
       execute and deliver, all at such Pledgor's expense, all such instruments
       and documents, and to do or cause to be done all such other acts and
       things as may be necessary or, in the reasonable opinion of the
       Administrative Agent, advisable to exempt such Securities from
       registration under the provisions of the Securities Act, and to make all
       amendments to such instruments and documents which, in the opinion of the
       Administrative Agent, are necessary or advisable, all in conformity with

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       the requirements of the Securities Act and the rules and regulations of
       the Securities and Exchange Commission applicable thereto. Each Pledgor
       further agrees to use its best efforts to cause such issuer or issuers to
       comply with the provisions of the securities or "Blue Sky" laws of any
       jurisdiction which the Administrative Agent shall designate and, if
       required, to cause such issuer or issuers to make available to its
       security holders, as soon as practicable, an earnings statement (which
       need not be audited) which will satisfy the provisions of Section 11(a)
       of the Securities Act.

              7.4. Pledgors' Agreements, etc. Each Pledgor further agrees to do
       or cause to be done all such other acts and things as may be reasonably
       necessary to make any sales of any portion or all of the Securities
       pursuant to this (S)7 valid and binding and in compliance with any and
       all applicable laws (including, without limitation, the Securities Act,
       the Securities Exchange Act of 1934, as amended, the rules and
       regulations of the Securities and Exchange Commission applicable thereto
       and all applicable state securities or "Blue Sky" laws), regulations,
       orders, writs, injunctions, decrees or awards of any and all courts,
       arbitrators or governmental instrumentalities, domestic or foreign,
       having jurisdiction over any such sale or sales, all at such Pledgor's
       expense. Each Pledgor further agrees that a breach of any of the
       covenants contained in this (S)7 will cause irreparable injury to the
       Administrative Agent, that the Administrative Agent has no adequate
       remedy at law in respect of such breach and, as a consequence, agrees
       that each and every covenant contained in this (S)7 shall be specifically
       enforceable against such Pledgor by the Administrative Agent and each
       Pledgor hereby waives and agrees not to assert any defenses against an
       action for specific performance of such covenants other than that the
       Obligations have been fully paid in cash and all Commitments have been
       terminated.

       8. Marshalling. Neither the Administrative Agent nor any Lender shall be
required to marshal any present or future security for (including but not
limited to this Pledge Agreement and the Securities Collateral), or other
assurances of payment of, the Obligations or any of them, or to resort to such
security or other assurances of payment in any particular order. All of the
Administrative Agent's rights hereunder and in respect of such security and
other assurances of payment shall be cumulative and in addition to all other
rights, however existing or arising. To the extent that it lawfully may, each
Pledgor hereby agrees that it will not invoke any law relating to the
marshalling of collateral that might cause delay in or impede the enforcement of
the Administrative Agent's rights under this Pledge Agreement or under any other
instrument evidencing any of the Obligations or under which any of the
Obligations is outstanding or by which any of the Obligations is secured or
payment thereof is otherwise assured, and to the extent that it lawfully may,
each Pledgor hereby irrevocably waives the benefits of all such laws.

       9. Transfer, etc., by the Pledgors. Without the prior written consent of
the Administrative Agent, no Pledgor will sell, assign, transfer or otherwise
dispose of,

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grant any option with respect to, or pledge or grant any security interest in or
otherwise encumber or restrict any of the Securities Collateral or any interest
therein, except for the pledge thereof and security interest therein provided
for in this Pledge Agreement.

       10. Further Assurances. Each Pledgor will do all such acts, and will
furnish to the Administrative Agent all such financing statements, certificates,
legal opinions and other documents and will obtain all such governmental
consents and corporate approvals and will do or cause to be done all such other
things as the Administrative Agent may reasonably request from time to time in
order to give full effect to this Pledge Agreement and to secure the rights of
the Administrative Agent hereunder, all without any cost or expense to the
Administrative Agent or any Lender. Each Pledgor hereby irrevocably authorizes
the Administrative Agent at any time and from time to time to file in any filing
office in any Uniform Commercial Code jurisdiction any initial financing
statements and amendments thereto that (a) indicate the Collateral as the
Securities Collateral or words of similar effect, or as being of equal or lesser
scope or in greater detail, and (b) contain any other information required by
part 5 of Article 9 of the Uniform Commercial Code of the jurisdiction of the
filing office for the sufficiency or filing office acceptance of any financing
statement or amendment. Each Pledgor agrees to furnish any such information to
the Administrative Agent promptly upon request. Each Pledgor also ratifies its
authorization for the Administrative Agent to have filed in any Uniform
Commercial Code jurisdiction any like initial financing statements or amendments
thereto if filed prior to the date hereof. No Pledgor will permit to be effected
any amendment or modification of the charter, by-laws, operating agreements, or
other applicable organization documents of any of the Subsidiaries which would
(or would be reasonably likely to) adversely affect the rights or remedies of
the Administrative Agent hereunder or the value of the Securities Collateral.
Without the prior written consent of the Administrative Agent, no Pledgor will
cause or permit the membership interests of such Pledgor in any Subsidiary which
is a limited liability company to be evidenced by a certificate issued by such
Subsidiary or to constitute a security governed by Article 8 of the Uniform
Commercial Code of the jurisdiction in which such Subsidiary is organized.

       11. Administrative Agent's Exoneration. Under no circumstances shall the
Administrative Agent be deemed to assume any responsibility for or obligation or
duty with respect to any part or all of the Securities Collateral of any nature
or kind or any matter or proceedings arising out of or relating thereto, other
than (a) to exercise reasonable care in the physical custody of the Securities
Collateral and (b) after an Event of Default shall have occurred and be
continuing to act in a commercially reasonable manner. Neither the
Administrative Agent nor any Lender shall be required to take any action of any
kind to collect, preserve or protect its or any Pledgor's rights in the
Securities Collateral or against other parties thereto. The Administrative
Agent's prior recourse to any part or all of the Securities Collateral shall not
constitute a condition of any demand, suit or proceeding for payment or
collection of any of the Obligations. This Pledge Agreement constitutes a pledge
of the Securities Collateral and any other applicable collateral hereunder only,
and not an assignment of any duties or obligations of any Pledgor with respect
thereto, and by its acceptance hereof and whether or not the

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Administrative Agent shall have exercised any of its rights or remedies
hereunder, the Administrative Agent does not undertake to perform or discharge,
and the Administrative Agent shall not be responsible or liable, other than for
gross negligence or willful misconduct, for the performance or discharge of any
such duties or responsibilities, including, without limitation, for any capital
calls. Each Pledgor agrees that, notwithstanding the exercise by the
Administrative Agent of any of its rights hereunder (other than the sale of the
Securities Collateral), such Pledgor shall remain liable nonetheless for the
full and prompt performance of all of such Pledgor's obligations and liabilities
under any operating agreement, limited partnership agreement, or similar
document evidencing or governing any units of membership interest or limited
partnership interest in any limited liability company or limited partnership
included in the Securities Collateral. Under no circumstances shall the
Administrative Agent or any holder of any of the Obligations as such be deemed
to be a member, limited partner, or other equity owner of any of the
Subsidiaries by virtue of the provisions of this Pledge Agreement unless
expressly agreed to in writing by the Administrative Agent or such holder.
Without limiting the generality of the foregoing, the Administrative Agent shall
not have any fiduciary duty as such to any Pledgor or any other equity owner of
any of the Subsidiaries by reason of this Pledge Agreement, whether by virtue of
the security interests and liens hereunder, or any enforcement action in respect
of such security interests and liens, unless and until the Administrative Agent
is actually admitted to the applicable Subsidiary as a substitute member or
substitute equity owner thereof after exercising enforcement rights under
(S)9-610 or (S)9-620 of the Uniform Commercial Code in effect in the State of
New York, or otherwise.

       12. No Waiver, etc. Neither this Pledge Agreement nor any term hereof may
be changed, waived, discharged or terminated except by a written instrument
expressly referring to this Pledge Agreement and to the provisions so modified
or limited, and executed by the Administrative Agent, with the consent of the
Majority Lenders, and the Pledgors. No act, failure or delay by the
Administrative Agent shall constitute a waiver of its rights and remedies
hereunder or otherwise. No single or partial waiver by the Administrative Agent
of any default or right or remedy that it may have shall operate as a waiver of
any other default, right or remedy or of the same default, right or remedy on a
future occasion. Each Pledgor hereby waives presentment, notice of dishonor and
protest of all instruments, included in or evidencing any of the Obligations or
the Securities Collateral, and any and all other notices and demands whatsoever
(except as expressly provided herein or in the Credit Agreement).

       13. Notice, etc. All notices and other communications made or required to
be given pursuant to this Pledge Agreement shall be in writing and shall be
delivered in hand, mailed by United States registered or certified first class
mail, postage prepaid, sent by overnight courier or postal service or by
fascimile transmission confirmation, as the case may be, if to the
Administrative Agent or any Pledgor, at the address set forth for such Person in
(S)20 of the Credit Agreement, or such other address for notice as the
Administrative Agent or any Pledgor, as the case may be, shall have furnished in
writing to the Person giving the notice. Any such notice or communication shall
be deemed to have been duly given or made and to have become effective (i) if
delivered

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by hand, overnight courier or fascimile to a responsible officer of the party to
which it is directed, at the time of the receipt thereof by such officer or the
sending of such fascimile with transmission confirmed and (ii) if sent by
registered or certified first-class mail, postage prepaid, on the third Business
Day following the mailing thereof.

       14. Termination; Release of Collateral. (a) Upon final payment and
performance in full in cash of the Obligations and the cancellation or
termination of all Commitments to extend credit under the Credit Agreement or
any of the other Loan Documents, this Pledge Agreement shall terminate and the
Administrative Agent shall, at any Pledgor's request and expense, (i) return
such Securities Collateral in the possession or control of the Administrative
Agent as has not theretofore been disposed of pursuant to the provisions hereof,
together with any moneys and other property at the time held by the
Administrative Agent hereunder, and (ii) execute and deliver to the applicable
Pledgor, all releases, assignments and other instruments as may be necessary or
proper to terminate the Administrative Agent's security interest in such
Securities Collateral.

       (b)    Upon the completion of an IPO by the Borrower, and so long as the
Trustee terminates its security interest in such Securities Collateral, the
Administrative Agent shall, at the Parent's request and expense, (i) return all
Pledged Interests of the Borrower in the possession or control of the
Administrative Agent as has not theretofore been disposed of pursuant to the
provisions hereof, and (ii) execute and deliver to the Parent, all releases,
assignments and other instruments as may be necessary or proper to terminate the
Administrative Agent's security interest in such Pledged Interests.

       15. Overdue Amounts. Until paid, all amounts due and payable by the
Pledgors hereunder shall be a debt secured by the Securities Collateral and
shall bear, whether before or after judgment, interest at the rate of interest
for overdue principal set forth in the Credit Agreement.

       16. Governing Law; Consent to Jurisdiction. THIS PLEDGE AGREEMENT SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK. Each Pledgor agrees that any suit for the enforcement of this Pledge
Agreement may be brought in the courts of the State of New York or any federal
court sitting therein and consents to the non-exclusive jurisdiction of such
court and to service of process in any such suit being made upon such Pledgor by
mail at the address specified with his signature below. Each Pledgor hereby
waives any objection that he may now or hereafter have to the venue of any such
suit or any such court or that such suit is brought in an inconvenient court.

       17. Waiver of Jury Trial. EACH PARTY HERETO WAIVES ITS RIGHT TO A JURY
TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN
CONNECTION WITH THIS PLEDGE AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR
THE PERFORMANCE OF ANY SUCH RIGHTS OR OBLIGATIONS. Except as prohibited by law,
each Pledgor waives any right which it may have to claim or recover in any
litigation referred to in the preceding sentence any special, exemplary,
punitive or consequential damages or any damages other than, or in

<PAGE>

                                      -12-

addition to, actual damages. Each Pledgor (a) certifies that neither the
Administrative Agent or any Lender nor any representative, agent or attorney of
the Administrative Agent or any Lender has represented, expressly or otherwise,
that the Administrative Agent or any Lender would not, in the event of
litigation, seek to enforce the foregoing waivers and (b) acknowledges that, in
entering into the Credit Agreement and the other Loan Documents to which the
Administrative Agent or any Lender is a party, the Administrative Agent and the
Lenders are relying upon, among other things, the waivers and certifications
contained in this (S)18.

       18. Miscellaneous. The headings of each section of this Pledge Agreement
are for convenience only and shall not define or limit the provisions thereof.
This Pledge Agreement and all rights and obligations hereunder shall be binding
upon each Pledgor and his respective successors and assigns, and shall inure to
the benefit of the Administrative Agent and the Lenders and their respective
successors and assigns. If any term of this Pledge Agreement shall be held to be
invalid, illegal or unenforceable, the validity of all other terms hereof shall
be in no way affected thereby, and this Pledge Agreement shall be construed and
be enforceable as if such invalid, illegal or unenforceable term had not been
included herein. Each Pledgor acknowledges receipt of a copy of this Pledge
Agreement.

                  [Remainder of page intentionally left blank]

<PAGE>

       IN WITNESS WHEREOF, intending to be legally bound, each Pledgor and the
Administrative Agent have caused this Pledge Agreement to be executed as of the
date first above written.

                                        REPUBLIC ENGINEERED PRODUCTS LLC

                                          By:  /s/ Michael Psaros
                                             -----------------------------------
                                            Name:  Michael Psaros
                                            Title: President

                                        BLUE BAR, L.P.

                                          By: BLUE STEEL CORPORATION
                                          Its General Partner

                                          By:  /s/ Michael Psaros
                                             -----------------------------------
                                            Name:  Michael Psaros
                                            Title: President

                                        FLEET CAPITAL CORPORATION,
                                        as Administrative Agent

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

<PAGE>

       The undersigned Subsidiaries hereby join in the above Pledge Agreement
for the sole purpose of consenting to and being bound by the provisions of
(S)(S)4.1, 6 and 7 thereof, the undersigned hereby agreeing to cooperate fully
and in good faith with the Administrative Agent and the Pledgors in carrying out
such provisions.

                                          REPUBLIC ENGINEERED PRODUCTS LLC

                                          By:  /s/ Michael Psaros
                                             -----------------------------------
                                            Name:  Michael Psaros
                                            Title: President

                                          BLUE STEEL CAPITAL CORP.

                                          By:  /s/ Michael Psaros
                                             -----------------------------------
                                            Name:  Michael Psaros
                                            Title: President

                                          N&T RAILWAY COMPANY LLC

                                          By: REPUBLIC ENGINEERED PRODUCTS LLC
                                            Its Sole Member

                                          By:  /s/ Michael Psaros
                                             -----------------------------------
                                            Name:  Michael Psaros
                                            Title: President

<PAGE>

                           ANNEX A TO PLEDGE AGREEMENT

       None of the issuers has any authorized, issued or outstanding shares of
its capital stock, membership interests or other equity interests of any class
or any commitments to issue any shares of its capital stock, membership
interests or other equity interests of any class or any securities convertible
into or exchangeable for any shares of its capital stock, membership interests
or other equity interests of any class except as otherwise stated in this Annex
A.

<TABLE>
<CAPTION>
 ----------------------------------------------------------------------------------------------------------------------------

 ----------------------------------------------------------------------------------------------------------------------------
                                              Class of         Number of       Number of        Number of        Par or
                            Record          Securities or      Authorized        Issued        Outstanding    Liquidation
                                            -------------
        Issuer               Owner          other Equity       Securities     Securities or   Securities or      Value
        ------               -----          ------------     -------------   --------------   -------------     --------
                                             Interests         or other      other Equity     other Equity
                                             ---------        ---------       ------------    ------------
                                                               Equity          Interests       Interests
                                                               ------          ---------       ---------
                                                              Interests
                                                              ---------
 ----------------------------------------------------------------------------------------------------------------------------

 ----------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                 <C>                <C>             <C>              <C>             <C>
 Republic Engineered    Blue Bar, L.P.      Membership        100%
 Products LLC                               interests
 ----------------------------------------------------------------------------------------------------------------------------
 N&T Railway Company    Republic            Membership        100%
 LLC                    Engineered          Interests
                        Products LLC
 ----------------------------------------------------------------------------------------------------------------------------
 Blue Steel Capital     Republic            Common Stock      100%
 Corp.                  Engineered
                        Products LLC
 ----------------------------------------------------------------------------------------------------------------------------

 ----------------------------------------------------------------------------------------------------------------------------
</TABLE><PAGE>

                                                                     EXHIBIT 4.5

                         PLEDGE INTERCREDITOR AGREEMENT

          PLEDGE 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, a national banking
association, acting in its capacity as Indenture Trustee (as hereinafter
defined) and as 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").

<PAGE>

                                       -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 Section 7.01 and any remedies taken by any
Secured Party in connection therewith shall be subject to the provisions of
Article III of this 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
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 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

<PAGE>

                                       -3-

RTI Notes and the relevant Indenture Trustee are preserved and are not adversely
affected hereby.

          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:

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

          "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.

          "Collateral Accounts" shall have the meaning set forth in Section
4.01.

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

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

<PAGE>

                                       -4-

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

          "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.

          "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.

<PAGE>

                                       -5-

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

          "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" 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 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.

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

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

          "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.

          "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

<PAGE>

                                       -6-

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, premiums, and
enforcement costs of the Majority Noteholders if any.

          "Permitted Investments" shall mean (i) direct obligations of the
United States of America or any agency thereof or obligations guaranteed by the
United States of America or any agency thereof; (ii) time deposit accounts,
certificates of deposit and money market deposits maturing within 180 days of
the date of acquisition thereof issued by a bank or trust company which is
organized under the laws of the United States of America, any state thereof or
any foreign country recognized by the United States of America having capital,
surplus and undivided profits aggregating in excess of $250,000,000 (or the
foreign currency equivalent thereof) and whose long-term debt, or whose parent
holding company's long-term debt, is rated A (or such similar equivalent rating)
or higher by at least one nationally recognized statistical rating organization
(as defined in Rule 436 under the Securities Act of 1933, as amended); (iii)
repurchase obligations with a term of not more than 30 days for underlying
securities of the types described in clause (i) above entered into with a bank
meeting the qualifications described in clause (ii) above; (iv) commercial
paper, maturing not more than 180 days after the date of acquisition, issued by
a corporation (other than an affiliate of the Borrower) organized and in
existence under the laws of the United States of America or any foreign country
recognized by the United States of America with a rating at the time as of which
any investment therein is made of P-1 (or higher) according to Moody's Investors
Services, Inc. ("Moody's"), or A-1 (or higher) according to Standard & Poor's
Ratings Group ("S&P"); (v) securities with maturities of six months or less from
the date of acquisition issued or fully guaranteed by an state, commonwealth or
territory of the United States of America, or by any political subdivision or
taxing authority thereof, and rated at least A by S&P or A by Moody's; (vi)
mutual funds whose investment guidelines restrict such funds' investments to
those satisfying the provisions of clauses (i) through (v) above; and (vii) time
deposit accounts, certificates of deposit and money market deposits in an
aggregate face amount not in excess of 1/2 of 1% of total assets of the
Companies, on a consolidated basis, as of the end of the Borrower's most
recently completed fiscal year.

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

<PAGE>

                                       -7-

          "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.

          "Reimbursement Obligations" shall have the meaning set forth in
Section 4.01.

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

          "Required Secured Parties" shall mean the holders of Voting
Obligations representing at least a majority of the Voting Obligations.

          "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 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.

<PAGE>

                                      -8-

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

          "Senior Notes" 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.

          "Unfunded L/C Exposure" shall mean, at any time, the aggregate undrawn
amount of all outstanding Letters of Credit at such time.

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

          "Voting Actions" shall mean all amendments and modifications to, and
waivers of any provisions of, and consents granted under this Agreement and the
Pledge Agreements.

          "Voting Credit Agreement Obligations" shall mean, at any time (without
duplication), (i) the aggregate principal amount of the Revolving Credit Loans
outstanding at such time, (ii) the Unfunded L/C Exposure at such time, (iii) the
aggregate amount of unreimbursed disbursements under Letters of Credit ("L/C
Disbursements") and (iv) the aggregate principal amount of funds available to
the Borrower under the Credit Agreement at such time; provided, however, that
the amount referred to in clause (iv) above shall not include any portion of
such available amount that is not made available to the Borrower by the Lenders
as a result of a failure of a condition to borrowing under the Credit Agreement,
except to the extent such failure is waived by the Lenders.

<PAGE>

                                      -9-

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

          "Voting Senior Note Obligations" shall mean, at any time, the
aggregate principal amount of the outstanding Senior Notes at such time.

          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 "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

                 ACTS OF SECURED PARTIES; AMOUNTS OF OBLIGATIONS

          SECTION 2.01. Acts of Secured Parties. Any request, demand,
authorization, direction, notice, consent, waiver or other action permitted or
required by this Agreement to be given or taken by the Secured Parties or any
portion thereof (including the Required Secured Parties) may be and, at the
request of either the Administrative Agent or the Indenture Trustee, shall be
embodied in and evidenced by one or more written instruments reasonably
satisfactory in form to the Administrative Agent or the Indenture Trustee, as
the case may be, and signed by or on behalf of such persons and, except as
otherwise expressly provided in any such instrument, any such action shall
become effective when such instrument or instruments shall have been delivered
to the Administrative Agent and the Indenture Trustee. The instrument or
instruments evidencing any action (and the action embodied therein and evidenced
thereby) are sometimes referred to herein as an "Act" of the persons signing
such instrument or instruments. Each of the Administrative Agent and the
Indenture Trustee shall be entitled to rely absolutely upon an Act of any other
Secured Party if such Act purports to be taken by or on behalf of such Secured
Party, and nothing in this Section 2.01 or elsewhere in this Agreement shall be
construed to require any Secured Party to demonstrate that it has been
authorized to take any action that it purports to be taking, the Administrative
Agent and the Indenture Trustee being entitled to rely conclusively, and being
fully protected in so relying, on any Act of such Secured Party.

          SECTION 2.02. Determination of Amounts of Obligations. Each of the
Administrative Agent and the Indenture Trustee agrees to provide to any Secured
Party such information, reasonably available to the Administrative Agent or the
Indenture Trustee, as the case may be, as such Secured Party may reasonably
request for purposes of determinations to be made under this Agreement,
including information with respect to Outstanding Obligations, Voting
Obligations and matters provided for in Article IV, including, without
limitation, periodic accountings as to amounts in each of the Collateral
Accounts.

          SECTION 2.03. Restrictions on Actions. Each Secured Party agrees that,
as long as any Outstanding Obligations exist, the provisions of this Agreement
shall provide the exclusive method by which any Secured Party may exercise any
Enforcement under or with

<PAGE>

                                      -10-

respect to the Shared Collateral and the Pledge Agreement to which it is a
party. Therefore, each Secured Party shall, for the mutual benefit of all
Secured Parties, except as permitted under this Agreement:

          (a) refrain from taking or filing any action, judicial or otherwise,
to enforce any rights or pursue any remedies under the Pledge Agreement to which
it is a party, except for delivering notices hereunder; and

          (b) refrain from exercising any rights or remedies under the Pledge
Agreement to which it is a party that may be exercisable as a result of an Event
of Default;

          provided, however, that the foregoing shall not prevent (i) any
Secured Party from imposing a default rate of interest in accordance with the
Credit Agreement or the Indenture, as applicable, (ii) any Secured Party from
raising any defenses in any action in which it has been made a party defendant
or has been joined as a third party, (iii) any Secured Party from exercising its
rights and remedies as a general creditor in accordance with the Senior Credit
Documents and applicable law, including the right to commence legal proceedings
to collect any Outstanding Obligation due and payable to such Secured Party and
remaining unpaid, to obtain a judgment and to enforce such judgment, in each
case to the same extent as if such Secured Party were an unsecured creditor, or
(iv) any Secured Party as a secured creditor from taking or filing any action or
exercising any rights or remedies with respect to any Collateral to which it is
entitled (other than the Shared Collateral). For the avoidance of doubt, each
Secured Party shall be free to act in any respect provided for under the Senior
Credit Documents to which it is a party and pursuant to applicable law and
principles of equity with respect to its Collateral not constituting Shared
Collateral.

                                   ARTICLE III

                                    REMEDIES

          SECTION 3.01. 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

<PAGE>

                                      -11-

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 3.02. Actions Under Pledge Agreements.

          (a) Upon the occurrence and during the continuance of an Event of
Default under the applicable Senior Credit Documents, each Secured Party shall
have the non-exclusive right to deliver an Enforcement Notice in respect of the
Shared Collateral to the other Secured Parties. After delivery of such
Enforcement Notice, the other Secured Parties shall have the right to join in
such Enforcement in respect of the Shared Collateral and to participate in the
management, exercise and performance of such Enforcement, in each case, subject
to Section 3.02(b). To the extent such Enforcement is not joined in by such
other Secured Parties, the Secured Party that sent the Enforcement Notice may
commence Enforcement in respect of the Shared Collateral following the
expiration of a 30 day period in which the Secured Parties attempt to reach
agreement as to a joint Enforcement, and direct the management, exercise and
performance of such Enforcement, subject to the provisions of Section 3.02(b).
Any Secured Party commencing Enforcement in respect of the Shared Collateral
pursuant to this Section 3.02(a) shall use reasonable judgment and efforts to
maximize the proceeds from such Enforcement for the benefit of the Secured
Parties and each holder of Outstanding Obligations and shall pursue Enforcement
in a commercially reasonable, expeditious manner. All actions by the Secured
Parties pursuant to this Section 3.02(a) shall be subject to the provisions of
Sections 3.02(b) and 7.02.

          (b) Following the delivery of an Enforcement Notice, the Secured Party
commencing Enforcement shall notify the other Secured Parties of its intended
enforcement actions at least 10 days prior to taking any such actions. In the
event such Secured Party (or its nominee) wishes to assume voting control of the
entities whose equity constitutes Shared Collateral (or any of them), then such
voting control shall be allocated to the Secured Parties based on the respective
Outstanding Voting Obligations, and any election of members of boards of
directors or similar governing bodies shall be effected such that each Secured
Party shall have the right to elect such number of directors as bears the same
proportion to the total number of directors of such entities as the Voting
Obligations of such Secured Party bears to the total Voting Obligations
(rounding to the nearest whole number, rounding upward if the fraction is 1/2).
In the event such Secured Party (or its nominee) wishes to sell such equity
interests, at auction or otherwise, the other Secured Parties shall have
approved the sale in their reasonable discretion or the Senior Note Obligations
(in the case of Enforcement and sale directed by the Administrative Agent) or
the Credit Agreement Obligations (in the case of Enforcement and sale directed
by the Indenture Trustee) shall have been repaid in full in connection with and
simultaneously with such sale, otherwise such non consenting Secured Party shall
have the right to object to such sale in any action or proceeding, and provided
that

<PAGE>

                                      -12-

any such dispute as to any sale shall be resolved by a court of competent
jurisdiction. Each of the Administrative Agent and the Indenture Trustee may
take, but shall have no obligation to take, any and all such actions under the
Pledge Agreement to which it is a party, or otherwise as it shall deem to be in
the best interests of the Secured Parties in order to maintain the Shared
Collateral and protect and preserve such Shared Collateral and the rights of the
Secured Parties; provided, however, that in the absence of written approval
(which may relate to the exercise of specific remedies or to the exercise of
remedies in general) from the other Secured Parties, neither the Administrative
Agent nor the Indenture Trustee shall take action to foreclose any Lien on such
Shared Collateral or exercise any other remedies available to it under the
Lender Pledge Agreement or the Indenture Pledge Agreement, as applicable, with
respect to such Shared Collateral or any part thereof in a manner requiring such
approval or consent hereunder.

          SECTION 3.03. Meetings, Voting. (a) Following the delivery of an
Enforcement Notice in respect of the Shared Collateral, upon the request of any
Secured Party, the parties shall schedule a meeting of all Secured Parties to be
held at a location in any of New York, New York, Boston, Massachusetts or
Chicago, Illinois, such location to be agreed upon between the Secured Parties,
and any Secured Party may participate via telephone. Without limiting Section
3.01(a), at such meeting the Secured Parties shall consult with one another in
an attempt to determine a mutually acceptable course of conduct regarding the
Companies, the collection of the Outstanding Obligations and the exercise of
rights and remedies under the Pledge Agreements.

          (b) In the event that it is necessary to take any Voting Action in
respect of the Shared Collateral, the Administrative Agent or the Indenture
Trustee, as applicable, shall (i) notify each Credit Agreement Party and Senior
Note Creditor entitled to participate in such proposed Voting Action, (ii)
collect instructions from such Credit Agreement Parties and Senior Note
Creditors regarding such Voting Action and (iii) notify all Credit Agreement
Parties and Senior Note Creditors of the results of such Voting Action.

          SECTION 3.04. Records. Each Secured Party shall maintain records
regarding Voting Actions, determinations of the amounts of the Outstanding
Obligations and Voting Obligations for any purpose, the allocation of deposits
to the Collateral Accounts and any distributions therefrom. The information
contained in such records shall be made available to any other Secured Party
upon request.

                                   ARTICLE IV

                  PROCEEDS RECEIVED UNDER THE PLEDGE AGREEMENTS

          SECTION 4.01. Collateral Accounts.

          (a) Each of the Administrative Agent and the Indenture Trustee shall
establish and maintain two accounts into which it shall deposit all amounts
received by it in its capacity as Administrative Agent or Indenture Trustee, as
the case may be (and not in any other capacity), in respect of the Shared
Collateral upon an Event of Default, including all monies received on account of
any sale of or other realization upon any of the Shared Collateral pursuant to
the Pledge Agreement to which it is a party. One of the two accounts of such

<PAGE>

                                      -13-

person referred to in the preceding sentence shall be established and maintained
by each of the Administrative Agent and the Indenture Trustee for the benefit of
the Credit Agreement Parties in respect of the Outstanding Credit Agreement
Obligations (each a "Credit Agreement Collateral Account", and collectively the
"Credit Agreement Collateral Accounts"), and the second account shall be
established and maintained by each of the Administrative Agent and the Indenture
Trustee for the benefit of the Senior Note Creditors (each a "Senior Note
Collateral Account", and collectively, the "Senior Note Collateral Accounts",
and, together with the Credit Agreement Collateral Accounts, the "Collateral
Accounts"). All amounts deposited in the respective Collateral Accounts shall be
held by the Administrative Agent or the Indenture Trustee, as the case may be,
subject to the terms hereof and of the Pledge Agreement to which it is a party,
it being understood that any such amounts may be released to the Borrower to the
extent required by the applicable Pledge Agreement (any amounts so released to
be released from the respective Collateral Accounts pro rata in accordance with
the aggregate amounts deposited in such accounts during the term of this
Agreement; provided, however, that the aggregate amounts deposited in either
Credit Agreement Collateral Account shall be deemed to have been reduced by any
amounts released from such Account pursuant to paragraph (d) below). None of the
Companies shall have any rights with respect to, and the Administrative Agent or
the Indenture Trustee, as the case may be, shall have exclusive dominion and
control over, the Collateral Accounts.

          (b) Except as set forth in paragraphs (d) and (g) below, all amounts
that the Administrative Agent or the Indenture Trustee, as the case may be, is
required at any time to deposit in the respective Collateral Accounts pursuant
to paragraph (a) above shall be allocated as among, and deposited in, the
applicable Credit Agreement Collateral Account and the applicable Senior Note
Collateral Account pro rata in accordance with the aggregate amount of
Outstanding Credit Agreement Obligations and Outstanding Senior Note
Obligations.

          (c) Each of the Administrative Agent and the Indenture Trustee shall
establish sub-accounts in its Credit Agreement Collateral Account with respect
to each outstanding Letter of Credit. All amounts deposited in the Credit
Agreement Collateral Account in respect of Letters of Credit shall be allocated
among, and deposited in, the respective sub-accounts therein pro rata in
accordance with the Unfunded L/C Exposure with respect to the related Letters of
Credit. If, on or after the date on which any funds are deposited in the Credit
Agreement Collateral Account pursuant to paragraph (b) above, any Letter of
Credit is drawn upon by the beneficiary thereof, the Administrative Agent shall
apply any funds in the sub-account with respect to such Letter of Credit to the
reimbursement of such L/C Disbursement as if such reimbursement were being made
by the Borrower pursuant to the Credit Agreement (but not in an amount in excess
of the amount of such drawing plus accrued and unpaid interest thereon from the
date of draw to the date of payment).

          (d) At the time of any expiration or cancellation of any outstanding
Letter of Credit, or any other reduction in the amount of Unfunded L/C Exposure
thereunder (other than as a result of an L/C Disbursement), the amount of funds
in the sub-account with respect to such Letter of Credit (or, in the case of any
partial reduction in the amount of Unfunded L/C Exposure thereunder, a pro rata
portion of such funds) shall be released from such sub-account, and the funds so
released shall be allocated among, and deposited in, the Credit Agreement
Collateral Account and the Senior Note Collateral Account pro rata in accordance
with the

<PAGE>

                                      -14-

aggregate amount of the Outstanding Credit Agreement Obligations and Outstanding
Senior Note Obligations, respectively, at such time.

          (e) Each of the Administrative Agent and the Indenture Trustee shall
have the right at any time and from time to time to apply any amounts in the
Collateral Accounts to the payment of the reasonable out-of-pocket costs and
expenses incurred by such person in administering and carrying out their
respective obligations under this Agreement or the Pledge Agreements, in
exercising or attempting to exercise any right or remedy hereunder or thereunder
or in taking possession of, protecting, preserving or disposing of any item of
Collateral, and all amounts against or for which such person is to be
indemnified or reimbursed hereunder (excluding any such costs, expenses or
amounts that have theretofore been reimbursed) until all of such costs, expenses
and amounts have been paid in full; provided, however, that any such application
shall be allocated as among the Credit Agreement Collateral Account (provided
that the aggregate amounts deposited in the Credit Agreement Collateral Account
in respect of Letters of Credit shall be deemed to have been reduced by any
amounts released from such Account pursuant to paragraph (d) above) and the
Senior Note Collateral Account ratably in accordance with the aggregate amounts
deposited in such Accounts during the term of this Agreement. Each of the
Administrative Agent and the Indenture Trustee shall reimburse any Credit
Agreement Party or Senior Note Creditor, as the case may be, prior to applying
any amounts in the Collateral Accounts pursuant to Section 4.02 for any and all
losses with respect to any amounts expended with respect to any indemnity
provided in accordance with Section 5.03(d) by such Credit Agreement Party or
Senior Note Creditor by application of funds in the Collateral Accounts in the
same manner as provided in the proviso to the preceding sentence.

          (f) For purposes of determining allocations and deposits of funds (but
not distributions of funds) pursuant to this Section 4.01 and Section 4.02, any
Outstanding Obligations shall be deemed to be reduced by the amount, if any,
held by the Administrative Agent and the Indenture Trustee in the Collateral
Accounts (or sub-account therein) from which distributions are to be paid in
respect of such Outstanding Obligations.

          (g) If, at any time that the Administrative Agent or the Indenture
Trustee receives any amounts to be deposited in the Collateral Accounts, any
portion of the Outstanding Obligations consists of out-of-pocket costs and
expenses (including attorney fees and disbursements) or other claims in respect
of any indemnification or expense reimbursement obligations of any of the
Companies under any of the Senior Credit Documents (collectively, "Reimbursement
Obligations"), then, prior to allocating such amounts among the Collateral
Accounts, the Administrative Agent or the Indenture Trustee, as applicable,
shall, to the extent it shall have received notice of such Reimbursement
Obligations, apply such amounts to pay such Reimbursement Obligations (pro rata
among such Reimbursement Obligations, in the event that the amount to be so
applied is insufficient to pay all such Reimbursement Obligations in full).

          SECTION 4.02. Application of Proceeds. (a) Amounts deposited in the
Credit Agreement Collateral Accounts shall be applied in the following order of
priority:

          First, to the payment of all Outstanding Credit Agreement Obligations
     that consist of costs and expenses incurred in connection with the
     enforcement or protection

<PAGE>

                                      -15-

     of the rights of the Credit Agreement Parties and other fees and expenses
     of the Administrative Agent;

          Second, to the Credit Agreement Parties in respect of the Outstanding
     Credit Agreement Obligations pro rata in accordance with the aggregate
     amounts of the Outstanding Credit Agreement Obligations at such time, until
     the Outstanding Credit Agreement Obligations shall have been paid in full;

          Third, if there is any Unfunded L/C Exposure to the Credit Agreement
     Account in an amount equal to such Unfunded L/C Exposure;

          Fourth, if there are any Outstanding Senior Note Obligations to the
     Senior Note Collateral Account in an amount equal to such outstanding
     Senior Note Obligations; and

          Fifth, the balance, if any, to the Borrower or such other person or
     persons as shall be entitled thereto.

          (b) Amounts deposited in the Senior Note Collateral Accounts shall be
applied in the following order of priority:

          First, to the payment of all Outstanding Senior Note Obligations that
     consist of costs and expenses incurred in connection with the enforcement
     or protection of the rights of the Senior Note Creditors and other fees and
     expenses of the Indenture Trustee;

          Second, to the Senior Note Creditors pro rata in accordance with the
     aggregate amounts of the Outstanding Senior Note Obligations at such time,
     until the Outstanding Senior Note Obligations shall have been paid in full;

          Third, if there are any Outstanding Credit Agreement Obligations (or
     if the Lenders shall have any remaining commitments to lend under the
     Credit Agreement), or if there is any Unfunded L/C Exposure (or if the
     Lenders shall have any remaining commitments to participate in the issuance
     of Letters of Credit), to the Credit Agreement Collateral Account pro rata
     in accordance with the respective amounts of such Outstanding Obligations;
     and

          Fourth, the balance, if any, to the Borrower or such other person or
     persons as shall be entitled thereto.

          (c) All amounts deposited in any sub-account in the Credit Agreement
Collateral Account shall be applied as provided in Sections 4.01 (c) and (d).

          (d) Each Secured Party agrees that, notwithstanding any provision of
this Agreement or the other Senior Credit Documents, any sums and amounts
received by such Secured Party pursuant to this Section 4.02 shall be applied to
the payment of its Outstanding Obligations as follows: first, to the payment of
all Outstanding Obligations owed to such Secured Party, other than principal,
premium, interest and obligations in respect of

<PAGE>

                                      -16-

reimbursement of L/C Disbursements; second, to the payment of all Outstanding
Obligations owed to such Secured Party consisting of accrued interest; and
third, to the payment of all Outstanding Obligations owed to such Secured Party
consisting of principal, premium and obligations in respect of reimbursement of
L/C Disbursements.

          SECTION 4.03. Time of Payments. Unless the Administrative Agent or the
Indenture Trustee shall have received written instructions from the Required
Secured Parties as to the times at which any amounts are to be distributed
pursuant to Section 4.02, all distributions under Section 4.02 shall be made at
such times and as promptly as such person shall determine to be reasonable and
practicable under the circumstances, subject to Section 4.04; provided, however,
that any distributions from the Credit Agreement Collateral Account and the
Senior Note Collateral Account shall be made substantially simultaneously.

          SECTION 4.04. Application of Amounts Not Distributable. If there is no
provision under the Credit Agreement or the Indenture, as the case may be, for
the application of amounts that are to be distributed to the parties to the
Credit Agreement or the Indenture pursuant to Section 4.02 (whether by virtue of
the applicable Outstanding Obligations thereunder not being then due and payable
or otherwise) or for the holding of such amounts by or on behalf of such parties
pending application thereof, then the Administrative Agent or the Indenture
Trustee, as the case may be, shall invest the amounts in the applicable
Collateral Account in investments permitted by Section 4.05 and shall hold such
amounts and all proceeds of such investments in such Collateral Account for the
benefit of the Secured Parties until such amounts are either applied against
such Outstanding Obligations or such Outstanding Obligations have been paid in
full.

          SECTION 4.05. Investment of Amounts in Collateral Accounts. Pending
the disbursement thereof pursuant to the terms of this Agreement, all amounts in
the Collateral Accounts shall (to the extent deemed practical) be invested by
the Administrative Agent and the Indenture Trustee, as the case may be, in
Permitted Investments. Each of the Administrative Agent and the Indenture
Trustee shall, to the extent that the timing of distributions to be made from
any Collateral Account is known or can be reasonably anticipated, select
Permitted Investments for such Collateral Account that mature prior to the
anticipated date of any distribution to be made from such Collateral Account.
Neither the Administrative Agent nor the Indenture Trustee shall discriminate
between Collateral Accounts in the selection of Permitted Investments; provided,
however, that the foregoing shall not be construed to prevent the selection of
longer-term investments for the Letter of Credit Collateral Account if
distributions from such Account are expected to be made at a later date than
distributions from the other Collateral Accounts. Neither the Administrative
Agent nor the Indenture Trustee shall be liable for any loss resulting from any
investment made in accordance with the provisions of this Section 4.05, except
to the extent such loss was the result of such person's gross negligence or
willful misconduct. The Administrative Agent and the Indenture Trustee agree to
account to each other as to investment of and documents in the Collateral
Accounts promptly upon request.

                                    ARTICLE V

                    EXPENSES AND INDEMNIFICATION BY COMPANIES

<PAGE>

                                      -17-

          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 indemnify and hold harmless the
Administrative Agent, the Credit Agreement Parties, the Indenture Trustee, the
Senior Noteholders 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 any
Indemnitee in their respective capacities 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 VI

                         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 VII

                           INTERCREDITOR ARRANGEMENTS

          SECTION 7.01. Security Interests. Each of the Secured Parties hereby
agrees that the liens and security interests in respect of the Shared Collateral
granted to (i) the Administrative Agent, for the benefit of the Lenders, under
the Lender Pledge Agreement, and (ii) the Indenture Trustee, for the benefit of
the Senior Note Holders, under the Senior Note Pledge Agreement, shall be
treated, as among the Secured Parties, as having equal priority and shall at all
times be shared by the Secured Parties as provided herein, notwithstanding the
order or time of attachment, the order, time and manner of perfection, or the
order or time of

<PAGE>

                                      -18-

filing or recordation of any document or instrument, or other method of
perfecting a security interest in favor of any Secured Party in any of the
Shared Collateral. Each of the Secured Parties hereby further agrees that
nothing contained in this Agreement (other than the access rights set forth in
Section 3.04) shall be construed to affect any of the Secured Parties' rights
with respect to any of the Collateral to which it is entitled other than the
Shared Collateral. In the event that any of the Shared Collateral consists of
certificated securities, the Companies shall deliver such certificated
securities to be held by either the Indenture Trustee or the Administrative
Agent, and each of the Indenture Trustee and the Administrative Agent agree that
any such certificates controlled by it are held for the benefit of both the
Credit Agreement Parties and the Senior Note Creditors in accordance with this
Agreement. Each of the Administrative Agent and the Indenture Trustee further
agree that in the event that its obligations are repaid in full, then any such
certificates held by such party shall be delivered to such other party.

          SECTION 7.02. Turnover of Shared Collateral and Certain Payments. If
any Secured Party acquires custody, control or possession of any Shared
Collateral or proceeds therefrom other than pursuant to the terms of this
Agreement, then such Secured Party shall promptly cause such Shared Collateral,
proceeds or payments to be delivered to or put in the custody, possession or
control of either the Administrative Agent or the Indenture Trustee, as
applicable, for disposition or distribution in accordance with the provisions of
Sections 4.01 and 4.02. Until such time as the provisions of the immediately
preceding sentence have been complied with, such Secured Party shall be deemed
to hold such Shared Collateral, proceeds or payments in trust for the parties
entitled thereto hereunder. Notwithstanding the foregoing, no Secured Party
shall be required to deliver to or put in the custody, possession or control of
the Administrative Agent or the Indenture Trustee or to hold in trust as
specified in the preceding sentence any amount of any Outstanding Obligation
paid or prepaid by the Companies to it (and not obtained by it through any sale
of or other realization upon any Shared Collateral or by enforcement of its
rights as provided herein and in the Lender Pledge Agreement and the Senior Note
Pledge Agreement) in accordance with the terms of the Credit Agreement or the
Indenture, as applicable.

          SECTION 7.03. Release of Collateral. (a) Upon the satisfaction of the
provisions of the Credit Agreement and the Indenture that permit any Shared
Collateral to be released, such Shared Collateral shall be released upon the
receipt of evidence required by the Credit Agreement and the Indenture and
satisfactory to the Administrative Agent and the Indenture Trustee that such
provisions have been satisfied in full (and, if such release is made in
connection with the sale, transfer or other disposition of the Shared
Collateral, the proceeds of such transaction have been or will be applied to
repay or prepay Outstanding Obligations to the extent required by the Credit
Agreement and the Indenture).

          (b) Shared Collateral may be released in connection with the exercise
of any rights, powers or remedies by the Administrative Agent and the Indenture
Trustee pursuant to and in accordance with Section 3.01 and such release shall
not require any approval under this Section 7.03.

          (c) The Secured Parties hereby authorize the Administrative Agent and
the Indenture Trustee to execute releases and other documents in form and
substance satisfactory

<PAGE>

                                      -19-

to the Secured Parties in respect of any release of Shared Collateral permitted
under this Section 7.03.

          SECTION 7.04. Purchase of Collateral. Any Secured Party, Credit
Agreement Party or Senior Note Creditor may purchase Shared Collateral at any
public sale of such Shared Collateral pursuant to either Pledge Agreement and
may make payment on account thereof by using any Outstanding Obligation then due
and payable to such Person from the person that granted a security interest in
such Shared Collateral as a credit against the purchase price to the extent, but
only to the extent, approved by the Required Lenders and holders of a majority
of the Voting Senior Note Obligations.

          SECTION 7.05. 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

                                  ARTICLE VIII

                            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 IX

                                  MISCELLANEOUS

          SECTION 9.01. No Individual Action. No Secured Party may require the
Administrative Agent or the Indenture Trustee to take or refrain from taking any
action hereunder or under either Pledge Agreement or with respect to any of the
Shared Collateral except as and to the extent expressly set forth in this
Agreement.

<PAGE>

                                      -20-

          SECTION 9.02. 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. 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 (ii) of Section 9.06) are intended to confer a benefit
upon the Companies and shall be enforceable by the Companies.

          SECTION 9.03. Notices. All notices and other communications provided
for herein shall be in writing and delivered to the address set forth beneath
its signature hereto or as subsequently directed in writing to all other parties
hereto in accordance with this Section 9.03. 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 9.04. 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; provided,
however, that (i) Articles I, II, III, IV, V, VIII and IX, and Sections 7.01,
7.02 and 7.03, shall survive, and remain operative and in full force and effect,
as long as there are any Outstanding Obligations that are secured by either
Pledge Agreement and (ii) this Section 9.04, Article V and Section 9.05 of this
Agreement shall survive, and remain operative and in full force and effect,
regardless of the termination of this Agreement.

          SECTION 9.05. Applicable Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

          SECTION 9.06. 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
holders of a majority of the Voting Senior Note Obligations; provided, however,
that (i) no such modification or

<PAGE>

                                      -21-

amendment shall modify any provision hereof that is intended to provide for the
equal and ratable security of all Outstanding Obligations without the prior
written consent of all Secured Parties, (ii) no such modification or amendment
shall be made to Section 5.05 or 7.03 or to the definition of the term "Required
Secured Parties" for purposes of such Sections, or to Section 9.02(b) or to this
clause (ii), without the prior written consent of the Companies and (iii) no
such modification or amendment shall change the definition of the term "Required
Secured Parties" or this Section or Sections 7.02 or 7.03 without the prior
written consent of all Secured Parties. 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 parry to any other or further
notice or demand in the same, similar or other circumstances.

          SECTION 9.07. 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 9.08. 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 9.09. 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 9.10. 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 9.11. 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 with respect thereto. 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/ Raquel Palmer
                                       ---------------------------------
                                   Name:  Raquel Palmer
                                   Title: Vice President

                                   Address: 3770 Embassy Parkway
                                            Akron, Ohio 44333

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

                                   By: /s/ Raquel Palmer
                                       ---------------------------------
                                   Name:  Raquel Palmer
                                   Title: Vice President

                                   Address: 3770 Embassy Parkway
                                            Akron, Ohio 44333

                                   BLUE STEEL CAPITAL CORP.

                                   By: /s/ Raquel Palmer
                                       ---------------------------------
                                   Name:  Raquel Palmer
                                   Title: Vice President

                                   Address: 3770 Embassy Parkway
                                            Akron, Ohio 44333

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

                                   By: /s/ Raquel Palmer
                                       ---------------------------------
                                   Name:  Raquel Palmer
                                   Title: Vice President

                                   Address: 3770 Embassy Parkway
                                            Akron, Ohio 44333

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