Document:

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                                                                   Exhibit 10.23

CONFIDENTIAL TREATMENT REQUESTED
UNDER C.F.R. SECTIONS
200.80(b)(4), 200.83 and 230.406

*** INDICATES OMITTED MATERIAL THAT
IS THE SUBJECT OF A CONFIDENTIAL
TREATMENT REQUEST FILED
SEPARATELY WITH THE COMMISSION

                             PELLET SUPPLY AGREEMENT

                                 by and between

                         UNITED STATES STEEL CORPORATION

                                       and

                        REPUBLIC ENGINEERED PRODUCTS, LLC

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                  <C>
ARTICLE I - DEFINITIONS ...........................................................  1

ARTICLE II - PELLET SALES .........................................................  3
         2.1      Quantities. .....................................................  3
         2.2      Forecasts. ......................................................  4
         2.3      Declarations:  2004 Shipping Season. ............................  5
         2.4      Prices. .........................................................  5
         2.5      Invoices and Payment. ...........................................  9
         2.6      Delivery, Title and Risk of Loss:  Bailment Period. .............  11
         2.7      Delivery, Title and Risk of Loss:  2004 Shipping Season. ........  14
         2.8      Terms and Conditions of Sale. ...................................  14
         2.9      Warranty. .......................................................  14
         2.10     Most Favored Customer. ..........................................  14
         2.11     Cross-Default; Setoff; Right to Substitute New Terms ............  15

ARTICLE III - TERM AND TERMINATION ................................................  16
         3.1      Term. ...........................................................  16
         3.2      Termination. ....................................................  16

ARTICLE IV - MISCELLANEOUS ........................................................  17
         4.1      Intent of Agreement. ............................................  17
         4.2      Payment Errors. .................................................  17
         4.3      Dispute Resolution. .............................................  17
         4.4      Records. ........................................................  18
         4.5      Confidentiality. ................................................  18
         4.6      Severability. ...................................................  19
         4.7      Rights and Remedies; No Consequential Damages. ..................  19
         4.8      Costs and Expenses. .............................................  19
         4.9      Notices. ........................................................  20
         4.10     Assignment. .....................................................  20
         4.11     Counterparts. ...................................................  21
         4.12     Headings. .......................................................  21
         4.13     Governing Law. ..................................................  21
         4.14     No Third Party Rights. ..........................................  21
         4.15     Waiver and Amendments. ..........................................  21
         4.16     Force Majeure. ..................................................  21
         4.17     Entire Agreement. ...............................................  22

SCHEDULE A:          2002 Quality Specification for Minntac Acid Pellets
SCHEDULE B:          2002 Quality Specification for Minntac USS Fluxtac Pellets
SCHEDULE C:          2002 Quality Specification for Wabush 2.0% Mn Pellets
SCHEDULE D:          [***]
SCHEDULE E:          Bailment - Form 1
SCHEDULE F:          Bailment - Form 2
</TABLE>

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                             PELLET SUPPLY AGREEMENT

         THIS PELLET SUPPLY AGREEMENT, made effective as of August 16, 2002 (the
"Effective Date"), by and between REPUBLIC ENGINEERED PRODUCTS, LLC, a Delaware
limited liability company ("Buyer" or "Republic") and UNITED STATES STEEL
CORPORATION, a Delaware corporation ("Seller" or "USS").

                              W I T N E S S E T H:

         WHEREAS, Buyer desires to obtain a reliable source for its requirements
for Pellets (as defined herein) for use at its Lorain Works steelmaking facility
located near Lorain, Ohio; and

         WHEREAS, Seller desires to supply Buyer's requirements for Pellets; and

         WHEREAS, Buyer and Seller wish to enter into this Pellet Supply
Agreement (this "Agreement") setting forth, inter alia, the terms and conditions
relating to Seller's agreement to sell to Buyer, and Buyer's agreement to
purchase from Seller, Pellets, all upon and subject to the terms and conditions
herein provided.

         NOW, THEREFORE, Buyer and Seller hereby agree as follows:

                             ARTICLE I - DEFINITIONS

         As used herein, the following terms shall have the meanings set forth
below:

         "Agreement" shall have the meaning assigned in the Recitals hereto.

         "Alternate Acid Pellets" means acid pellets acquired by Seller from a
third party for resale to Buyer hereunder.

         "Alternate Fluxed Pellets" means fluxed pellets acquired by Seller from
a third party for resale to Buyer hereunder.

         "Bailment Period" means the period from the Effective Date through the
end of the 2003 Shipping Season.

         "Business Plan" means Republic's five-year business plan as presented
to USS on August 14, 2002.

         "Buyer" shall have the meaning assigned in the preamble hereto.

         "Coke" shall have the meaning set forth in the Coke Supply Agreement.

         "Coke Supply Agreement" means the Coke Supply Agreement of even date
herewith by and between Buyer and Seller.

         "Consumption Adjustment Report" shall have the meaning ascribed thereto
in Section 2.6(g).

         "Daily Consumption Report" shall have the meaning ascribed thereto in
Section 2.6(g).

         "Default" shall have the meaning assigned in Section 3.1.

         "Effective Date" shall have the meaning assigned in the preamble
hereto.

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         "Eastern Canadian Price" means [***].

         "Force Majeure" shall have the meaning assigned in Section 4.16.

         "High Mn Pellets" means Canadian produced high manganese acid pellets
meeting the specifications set forth in Schedule C, as amended from time to time
by Seller, subject to the consent of Buyer, which consent shall not be
unreasonably withheld.

         "Lorain Pipe Mills" or "LPM" means USS Tubular Products Division's
pipe/tubemaking facility in Lorain, Ohio .

         "Lorain Works" means Buyer's steelmaking facility in Lorain, Ohio.

         "Late Payment Rate" means [***].

         "Material Adverse Change" shall have the meaning assigned in Section
2.5(g).

         "Minntac" means Seller's acid and fluxed taconite ore pellet producing
facility in Mt. Iron, Minnesota.

         "Minntac Acid Pellets" means taconite pellets produced at Seller's
Minntac facility meeting the Specifications set forth in Schedule A, as amended
from time to time by Seller, subject to the consent of Buyer, which consent
shall not be unreasonably withheld.

         "Minntac Fluxed Pellets" means taconite pellets produced at Seller's
Minntac facility meeting the Specifications set forth in Schedule B, as amended
from time to time by Seller, subject to the consent of Buyer, which consent
shall not be unreasonably withheld.

         "Navigation Date" means the date of the official seasonal opening of
navigating routes required for lake transportation from Duluth, Minnesota to
Lorain Works, which event typically occurs on or about March 25.

         "Payment Date" shall have the meaning assigned in Section 2.5(c).

         "Pellets" means ore pellets, either acid or fluxed as specified by
Buyer, produced by Seller at its Minntac Plant or otherwise acquired by Seller,
which meet the Specifications.

         "Person" means any individual, partnership, joint venture, firm,
corporation, limited liability company, association, trust or other entity or
government or political subdivision or any agency, department or instrumentality
thereof.

         "Product Price" means [***].

         "Proprietary Information" shall have the meaning assigned in Section
4.5(a).

         "Republic" shall have the meaning assigned in the preamble hereto.

         "Rounds" shall have the meaning assigned in the Rounds Supply
Agreement.

         "Rounds Supply Agreement" means the Rounds Supply Agreement of even
date herewith by and

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among Buyers, Lorain Pipe Mill, an unincorporated unit of Seller's Tubular
Products Division and USS.

         "Seller" shall have the meaning assigned in the preamble hereto.

         "Services Agreement" means the Administrative and Utility Services
Agreement dated August 16, 2002 by and between Buyer and Lorain Pipe Mill, an
unincorporated unit of Seller's Tubular Products Division.

         "Settlement Date" shall have the meaning assigned in Section 2.5(c).

         "Settlement Period" shall have the meaning assigned in Section 2.5(c).

         "Shipping Season" means: (a) for 2002, that period extending from
August 16, 2002 through the day immediately prior to the 2003 calendar year
Navigation Date; (b) for 2003, that period extending from the 2003 calendar year
Navigation Date through the day immediately prior to the 2004 calendar year
Navigation Date; and (c) for 2004, that period extending from the 2004 calendar
year Navigation Date through December 31, 2004.

         "Specifications" means the qualities, sizes, conditions and other
specifications for Minntac Acid Pellets as set forth on Schedule A; for Minntac
Fluxed Pellets as set forth on Schedule B; and for High Mn Pellets as set forth
on Schedule C, as such Schedules are amended from time to time by Seller,
subject to the consent of Buyer, which consent shall not be unreasonably
withheld.

         "Storage Piles" shall have the meaning assigned in Section 2.5(a).

         "Ton," "net ton" and "NT" each means 2,000 pounds avoirdupois in
weight.

         "Transportation Charge" shall have the meaning assigned in Section 2.4.

         "USS" shall have the meaning assigned in the preamble hereto.

                            ARTICLE II - PELLET SALES

         2.1 Quantities.

         (a) Subject to the terms hereof, Seller agrees to sell and deliver to
Buyer, and Buyer agrees to purchase and accept delivery of, all of Buyer's
requirements for Pellets, including High Mn Pellets, for consumption in one
blast furnace at Lorain Works, it being understood that Buyer has the right to
change production practices at Lorain Works so as to use natural iron ore rather
than Pellets; provided, that Buyer may not substitute natural iron ore for
Pellets in excess of [***] of Buyer's normal annual requirements for Pellets
(including High Mn Pellets) in any Shipping Season. Seller shall also have a
right of first refusal (but not the obligation) to supply Buyer's requirements
for the second blast furnace at Lorain Works in the event Buyer operates both
blast furnaces simultaneously. In order to meet Buyer's requirements for Pellets
at Lorain Works, Seller may sell hereunder Minntac Acid Pellets, Minntac Fluxed
Pellets, Alternate Acid Pellets, Alternate Fluxed Pellets or High Mn Pellets;
provided, however, that Seller shall give Buyer prior written notice of any
delivery hereunder of any Alternate Acid Pellets or Alternate Fluxed Pellets,
and Buyer shall have the right to refuse delivery of such Alternate Acid Pellets
or Alternate Fluxed Pellets, if using such pellets would significantly increase
Lorain Works' operating costs, as determined in good faith by Buyer, subject to
review by Seller. Buyer may not resell or trade Pellets, except fines and/or
screenings, unless prior written consent is obtained from Seller. The total
quantity of High Mn Pellets purchased by Buyer

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hereunder during any Shipping Season shall not exceed [***] of Buyer's total
requirements for Pellets during such Shipping Season.

         (b) In the event that Buyer changes production practices at Lorain
Works so as to use natural iron ore rather than Pellets (subject to the limit
set forth in Section 2.1(a) above), (i) Buyer will negotiate in good faith with
Seller with a view toward reaching an exclusive iron ore supply arrangement
based on market prices and conditions then prevailing, and (ii) before Buyer
enters any long-term natural iron ore supply arrangement with any third Person,
Seller shall have the right to enter an arrangement with Buyer matching such
third Person's offered prices and terms.

         (c) Notwithstanding subsections (a) and (b) above, from and after
September 1, 2004, Buyer may require that up to 600,000 Tons of its requirements
for Pellets be fulfilled with pellets purchased by Buyer from a third party
source; provided, that such pellets shall not be intended for consumption or
used by Buyer before January 1, 2005.

         2.2 Forecasts.

         (a) During the Bailment Period, Buyer shall provide to Seller, prior to
the end of each calendar month during the Bailment Period, a written forecast of
its consumption of Minntac Acid Pellets, Minntac Fluxed Pellets and High Mn
Pellets during the next three-month period (the "Consumption Forecast"), except
that the Consumption Forecasts to be issued during each of the months of
September, October and November of each of 2002 and 2003 shall forecast Buyer's
consumption of such pellets through the following March. Promptly upon execution
of this Agreement, Buyer shall provide Seller a Consumption Forecast for the
period from the date of execution of this Agreement by both parties to the next
Navigation Date. During the Bailment Period, Seller shall use commercially
reasonable efforts to schedule deliveries of Pellets to Buyer in amounts and at
intervals to allow Buyer to maintain in the Stock Piles on an ongoing basis an
approximate two-week supply of Pellets in accordance with Buyer's projected
requirements as reflected in Buyer's Consumption Forecast; provided, however,
that during the time period of mid-September through late December of each of
the 2002 and 2003 Shipping Seasons, consistent with Buyer's Consumption
Forecasts and in consultation with Buyer, Seller shall use commercially
reasonable efforts to schedule additional deliveries of Pellets to Buyer in
amounts and at intervals to allow Buyer to build the bailment Stock Piles to
such levels as to permit Buyer to continue operations using only the Stock Piles
during the time that the navigating routes required for lake transportation from
Duluth, Minnesota to Lorain Works are closed (from approximately mid-December
until the Navigation Date).

         (b) With respect to the 2004 Shipping Season, no later than November
15, 2003 Buyer shall provide to Seller a written forecast of the quantity of
Minntac Acid Pellets, Minntac Fluxed Pellets and High Mn Pellets which it
anticipates consuming in its blast furnace(s) during the 2004 Shipping Season;
provided, however, that Buyer shall provide Seller with a supplement updating
its annual forecast if, at any time during the 2004 Shipping Season, such
forecast changes materially. It is understood that Buyer's 2004 Shipping Season
forecast provided in accordance with this Section 2.2(b) is for the purpose of
facilitating production, scheduling and delivery of Pellets during the 2004
Shipping Season and is not binding upon Buyer. Buyer shall purchase its
requirements for Pellets during the 2004 Shipping Season in accordance with the
declaration procedures set forth in Section 2.3 below.

         (c) It is expressly understood and agreed that Seller shall not be
deemed in breach of this Agreement in connection with any failure to provide
adequate supplies of Pellets to satisfy Buyer's requirements caused by Buyer's
failure to submit any of the Consumption Forecasts as required by Section
2.2(a), the 2004 Shipping Season forecast as required by Section 2.2(b), or any
of the Quarterly Declarations, Monthly Delivery Schedules or Amended Monthly
Delivery Schedules as required by Section 2.3, in a timely and reasonably
accurate and detailed manner.

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         2.3 Declarations: 2004 Shipping Season.

         (a) On or before the first day of March, June and September of the 2004
Shipping Season, Buyer shall submit to Seller a written declaration (hereinafter
"Quarterly Declaration") setting forth the quantity and type and the requested
monthly delivery schedule (hereinafter "Monthly Delivery Schedule"), for
Pellets, if any, to be delivered during each month in the next succeeding
calendar quarter. Buyer agrees to use reasonable efforts to schedule Pellets for
delivery at as uniform a rate as practicable from month to month; provided,
however, that in no event will Buyer be obligated to disrupt its normal course
of business or incur any additional expense in exerting such efforts. No later
than 15 days prior to the beginning of each month during each such calendar
quarter, Buyer may, by written notice to Seller, amend the Monthly Delivery
Schedule for such month as set forth in Buyer's Quarterly Declaration, so that
the quantity of Pellets to be delivered during such month is up to 20% greater
or up to 20% lesser than the quantity in the Monthly Delivery Schedule as set
forth in Buyer's Quarterly Declaration (hereinafter "Amended Monthly Delivery
Schedule"); provided, however, that any such changes shall be proportionately
spread across all pellet types contained in Buyer's initial Monthly Delivery
Schedule and shall be compatible with full vessel quantity deliveries as
required hereunder, unless the parties agree, in writing, to a different
allocation of the change. The total quantity of Pellets in Buyer's Monthly
Delivery Schedules or Amended Monthly Delivery Schedules, if any, made pursuant
to this paragraph shall be the binding purchase and sale commitments of Buyer
and Seller, respectively, under this Agreement for the applicable month. It is
recognized by the parties that deliveries of Pellets hereunder shall be made
during the 2004 Shipping Season. All requests for changes in a Monthly Delivery
Schedule or Amended Monthly Delivery Schedule, that are received less than 15
days prior to the beginning of the month (i) shall be subject to acceptance or
rejection by Seller and (ii) shall not be binding on Seller until accepted.

         (b) Within seven business days of Seller's receipt of any Quarterly
Declaration (including the Monthly Delivery Schedule) or any Amended Monthly
Delivery Schedule from Buyer, Seller shall send Buyer a written acknowledgement
of its receipt of the Quarterly Declaration or Amended Monthly Delivery
Schedule. Any proposed changes by Seller from Buyer's written Quarterly
Declaration or any Amended Monthly Delivery Schedule, shall be negotiated by the
parties before acknowledgement. If Seller has the right to reject all or any
portion of such Quarterly Declaration or Amended Monthly Delivery Schedule
pursuant to Section 2.3(a), Seller's written acknowledgement shall identify the
basis for any such rejection. Seller's notices of acknowledgement shall set
forth the quantity and type of Pellets Seller will deliver to Buyer and the
anticipated delivery schedule.

         2.4 Prices.

         (a) For Pellets delivered hereunder during the 2002 Shipping Season,
Buyer shall pay Seller per Ton of Pellets delivered at Lorain Works in
accordance with Section 2.6 or Section 2.7 hereof a price consisting of the sum
of the Product Price and the Transportation Charge, each determined as follows:

              (i)    Minntac Acid Pellets and Alternate Acid Pellets. For the
                     first [***] Tons of Minntac Acid Pellets and Alternate Acid
                     Pellets delivered on or after the Navigation Date for 2002
                     (when taking into account Minntac Acid Pellets and
                     Alternate Acid Pellets purchased by the prior owner of
                     Buyer's Lorain Works, Republic Technologies International,
                     LLC, during said time period), the Product Price for
                     Minntac Acid Pellets or Alternate Acid Pellets shall be
                     $[***] for each Ton unit of iron (natural basis analysis)
                     contained in the product (hereinafter, the "2002 Acid
                     Payback Price"); thereafter, and if said [***] Ton
                     threshold is achieved during the 2002 Shipping Season, for
                     the remainder of the 2002 Shipping Season the Product Price
                     shall be $[***] (hereinafter, the "2002 Acid Contract
                     Price", and the difference between the

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                     2002 Acid Payback Price and the 2002 Acid Contract Price is
                     the "Acid Payback Premium").

              (ii)   Minntac Fluxed Pellets and Alternate Fluxed Pellets. For
                     the first [***] Tons of Minntac Fluxed Pellets and
                     Alternate Fluxed Pellets delivered on or after the
                     Navigation Date for 2002 (when taking into account Minntac
                     Fluxed Pellets and Alternate Fluxed Pellets purchased by
                     the prior owner of Buyer's Lorain Works, Republic
                     Technologies International, LLC, during said time period),
                     the Product Price for Minntac Fluxed Pellets or Alternate
                     Fluxed Pellets shall be $[***] for each Ton unit of iron
                     (natural basis analysis) contained in the product
                     (hereinafter, the "2002 Fluxed Payback Price"); thereafter,
                     and if said [***] Ton threshold is achieved during the 2002
                     Shipping Season, for the remainder of the 2002 Shipping
                     Season the Product Price shall be $[***] (hereinafter, the
                     "2002 Fluxed Contract Price", and the difference between
                     the 2002 Fluxed Payback Price and the 2002 Fluxed Contract
                     Price is the "Fluxed Payback Premium").

              (iii)  High Mn Pellets. The Product Price for High Mn Pellets
                     shall be $[***] for each Ton unit of iron (natural basis
                     analysis) contained in the product.

              (iv)   The Transportation Charge for Minntac Acid Pellets and
                     Minntac Fluxed Pellets shall be equal to the sum (A) the
                     amount per Ton paid by Seller for rail transportation [***]
                     and (B) the rate per Ton in effect between Seller and [***]
                     including any end-of-year adjustments (up or down, as the
                     case may be), as such amounts may be determined from time
                     to time in accordance with the Transportation Services
                     Agreement effective July 1, 1998, by and between United
                     States Steel Corporation as successor by merger to USX
                     Corporation, on the one hand, and [***], on the other hand,
                     as amended.

              (v)    The Transportation Charge for Alternate Acid Pellets and
                     Alternate Fluxed Pellets shall be an imputed amount which
                     is equal to the sum of (A) the rate per Ton in effect
                     between Seller and [***] and (B) the rate per Ton in effect
                     between Seller and [***] including any end-of-year
                     adjustments (up or down, as the case may be), as such
                     amounts may be determined from time to time in accordance
                     with the Transportation Services Agreement effective July
                     1, 1998, by and between United States Steel Corporation as
                     successor by merger to USX Corporation, on the one hand,
                     and [***], on the other hand, as amended.

              (vi)   The Transportation Charge for High Mn Pellets shall be
                     $[***] (U.S. Dollars) per Ton. Seller shall be importer of
                     record for any High Mn Pellets, Alternate Acid Pellets or
                     Alternate Fluxed Pellets which Seller acquires from a
                     Canadian producer for resale to Buyer hereunder.

         (b) As close to the commencement of each of the 2003 and 2004 Shipping
Seasons as possible, as dictated by the formal publishing of the Eastern
Canadian Price, the parties hereto shall determine the revised Product Prices
and Transportation Charges for Pellets to be sold hereunder during the next
Shipping Season as follows:

              (i)    The Product Price for Minntac Acid Pellets and Alternate
                     Acid Pellets shall be the Product Price in effect for the
                     immediately prior Shipping Season (which is the 2002 Acid
                     Contract Price with respect to the 2002 Shipping Season,
                     and may be the 2003 Acid Contract Price with respect to the
                     2003 Shipping Season as provided below), as

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                     adjusted by the percentage change, up or down as the case
                     may be, in the Eastern Canadian Price from the immediately
                     prior calendar year to the current calendar year (which
                     resulting price for the 2003 Shipping Season is deemed the
                     "2003 Acid Contract Price"). Notwithstanding the preceding
                     sentence, in the event that Buyer does not achieve the
                     [***] Ton threshold during the 2002 Shipping Season (when
                     taking into account Minntac Acid Pellets and Alternate Acid
                     Pellets purchased by the prior owner of Lorain Works,
                     Republic Technologies International, LLC, on and after
                     March 31, 2002) as set forth in Section 2.4(a)(i), the
                     Product Price for Minntac Acid Pellets and Alternate Acid
                     Pellets for the 2003 Shipping Season shall be increased by
                     the Acid Payback Premium (and the resulting price for the
                     2003 Shipping Season is deemed the "2003 Acid Payback
                     Price") until such time that said threshold is achieved, at
                     which time the Product Price for the 2003 Shipping Season
                     shall revert to the 2003 Acid Contract Price.

              (ii)   The Product Price for Minntac Fluxed Pellets and Alternate
                     Fluxed Pellets shall be the Product Price in effect for the
                     immediately prior Shipping Season (which is the 2002 Fluxed
                     Contract Price with respect to the 2002 Shipping Season,
                     and may be the 2003 Fluxed Contract Price with respect to
                     the 2003 Shipping Season as provided below), as adjusted by
                     the percentage change, up or down as the case may be, in
                     the Eastern Canadian Price from the immediately prior
                     calendar year to the current calendar year (which resulting
                     price for the 2003 Shipping Season is deemed the "2003
                     Fluxed Contract Price"). Notwithstanding the preceding
                     sentence, in the event that Buyer does not achieve the
                     [***] Ton threshold during the 2002 Shipping Season (when
                     taking into account Minntac Fluxed Pellets and Alternate
                     Fluxed Pellets purchased by the prior owner of Lorain
                     Works, Republic Technologies International, LLC, on and
                     after March 31, 2002) as set forth in Section 2.4(a)(i),
                     the Product Price for Minntac Fluxed Pellets and Alternate
                     Fluxed Pellets for the 2003 Shipping Season shall be
                     increased by the Fluxed Payback Premium (and the resulting
                     price for the 2003 Shipping Season is deemed the "2003
                     Fluxed Payback Price") until such time that said threshold
                     is achieved, at which time the Product Price for the 2003
                     Shipping Season shall revert to the 2003 Fluxed Contract
                     Price.

              (iii)  The Transportation Charge for Minntac Acid Pellets, Minntac
                     Fluxed Pellets, Alternate Acid Pellets and Alternate Fluxed
                     Pellets shall be calculated throughout the term of this
                     Agreement in the same manner as set for the 2002 Shipping
                     Season in Sections 2.4(a)(iv) and (v) above.

              (iv)   With respect to High Mn Pellets: (A) the Product Price
                     shall based upon the Product Price in effect for the
                     immediately prior Shipping Season, as adjusted by the
                     percentage change, up or down as the case may be, in the
                     Eastern Canadian Price from the immediately prior calendar
                     year to the current calendar year; (B) the Transportation
                     Charge shall be determined in a manner that ensures Seller
                     is reimbursed for all product, transportation,
                     transportation-related, dock storage and handling, and
                     other out-of-pocket costs actually incurred by Seller for
                     each vessel delivered to Lorain Works; and (C) Seller shall
                     be entitled to a reasonable percentage profit on the
                     combination of items (A) and (B).

              (v)    If the parties have not agreed upon or otherwise
                     established revised Product Prices for Minntac Acid
                     Pellets, Minntac Fluxed Pellets, Alternate Acid Pellets,
                     Alternate Fluxed Pellets and/or High Mn Pellets by the
                     start of the Shipping Season, the Product Price in effect
                     during the preceding Shipping Season, for the type of
                     Pellet as

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                     to which there is no agreement, shall continue to be
                     charged subject to reconciliation (including application of
                     the Late Payment Rate to any adjustment) until after the
                     new Product Price is established.

              (vi)   If, during any Shipping Season, after Product Prices have
                     been agreed to by the parties or established through
                     dispute resolution procedures, (A) a significant change
                     (other than spot market or short term fluctuations) occurs
                     in the relationship between the number of operating blast
                     furnaces in the United States and Canada and the number of
                     operating pellet production plants in the United States and
                     Canada, or a similar change occurs causing a structural
                     change in the market, and (B) such change creates
                     significant opportunities for Seller to market Minntac
                     Pellets at higher prices or significant opportunities for
                     Buyer to purchase United States or Canadian pellets at
                     lower prices, then either party may provide written notice
                     to the other party specifying the changed circumstances and
                     requesting that negotiations concerning Product Prices
                     hereunder be reopened. Following receipt of any such notice
                     of changed circumstances, the parties shall negotiate in
                     good faith to establish revised Product Prices which are
                     reasonable under the changed circumstances. If the parties
                     are unable to agree upon any new Product Price, the matter
                     may be submitted by either party to the dispute resolution
                     procedure set forth in Section 4.3. During any such
                     negotiations or dispute resolution procedures, the
                     previously agreed to or established Product Prices shall
                     continue to be charged by Seller and paid by Buyer;
                     however, any new Product Prices agreed to by the parties or
                     established through dispute resolution procedures shall be
                     effective on, and, if necessary applied retroactively to,
                     the later of (X) the date of the notice of changed
                     circumstances, or (Y) July 1 of the calendar year in which
                     such notice of changed circumstances is provided (including
                     application of the Late Payment Rate to any adjustment).
                     Notwithstanding anything set forth herein, neither Seller
                     nor Buyer shall have any right to submit a notice of
                     changed circumstances pursuant to this Section 2.4(b)(iv)
                     more often than once during the term of this Agreement.

         (c) Notwithstanding subsections (a) and (b) of this Section 2.4, Seller
shall comply with Section 2.10.

         (d) The prevailing prices for Minntac Acid Pellets and Minntac Fluxed
Pellets at all times hereunder shall be subject to adjustment for variation in
quality as set forth in Schedule D, as the same may be revised from year to year
by the parties during the renegotiation of the Product Price, based upon
competitive market conditions prevailing at the time of such renegotiation for
long term sales of acid and fluxed pellets by domestic producers (including
Seller) to unaffiliated customers, and if the parties are unable to agree on
appropriate revised price adjustments prior to the start of the Shipping Season,
the matter in dispute may be submitted to the dispute resolution procedure set
forth in Section 4.3. Adjustments for variation in quality with respect to
Alternate Acid Pellets and Alternate Fluxed Pellets shall be governed by the
terms and conditions of Seller's purchase agreements with the third party
supplier thereof, which terms and conditions shall be subject to Buyer's
approval, which such approval shall not be unreasonably withheld, conditioned or
delayed.

         (e) To the extent legally permissible, all present and future taxes
imposed by any federal, state, local or foreign authority which [***] may be
required to pay or collect, upon or with reference to the sale, purchase,
transportation, delivery, storage (including, inter alia, with respect to the
bailment Stock Piles described in Section 2.6 below), use or consumption of
Pellets, including taxes upon or measured by the receipts therefrom (except net
income and equity franchise taxes), shall be for the account of [***].

                                       8

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         (f) The weights used for purposes of the bill of lading by the lake
carrier transporting Pellets to Lorain Works shall be the basis for determining
the amount of Pellets actually sold hereunder, and such weights shall be
conclusive as to the quantities of Pellets sold hereunder; provided, however,
that if Buyer should encounter material discrepancies in weights measured by the
lake carrier and weights measured by Buyer, Buyer and Seller shall meet to
discuss reasons for such discrepancies and whether remedial action is necessary.

         2.5 Invoices and Payment.

         (a) Buyer shall provide the Daily Consumption Reports and any
Consumption Adjustment Reports to Seller summarizing the number of tons of
Pellets removed during the prior day by Buyer from the bailment storage piles
referenced in Section 2.6 herein (hereinafter "Storage Piles"). Such reports
shall specify the type of Pellets removed and shall identify the Storage Pile
and/or piles from which they were removed.

              (b)(i) Bailment Invoicing. On each Settlement Date of each
                     Settlement Period from the Effective Date through March 31,
                     2004, Seller shall invoice Buyer for all Tons removed from
                     the bailment Storage Piles hereunder during such Settlement
                     Period based upon Buyer's Daily Consumption Reports and
                     Consumption Adjustment Reports. Seller shall invoice Buyer,
                     and Buyer shall pay Seller via wire transfer, the net
                     amount of the Product Price due per such invoices in
                     accordance with the payment provisions set forth in
                     Sections 2.5(c) through (g) below. The Product Price for
                     such Pellets shall be the Product Price in effect hereunder
                     at the time the Pellets were first received by Buyer and
                     placed into bailment storage at Lorain Works; provided,
                     however, that if more than one vessel is stored in a
                     Storage Pile, then the number of iron units in each Ton
                     removed from such Storage Pile, together with the
                     Transportation Charge for each such Ton, shall be
                     determined, for billing purposes, on a "first-in-first-out"
                     basis. Buyer shall promptly notify Seller in writing when
                     each individual Storage Pile is completely removed
                     (depleted) by Buyer. Seller shall then reconcile Buyer's
                     cumulative Daily Consumption Reports and any Consumption
                     Adjustment Reports issued with respect to such Storage Pile
                     with the cumulative vessel bill of lading weights of
                     material placed onto the Storage Pile. Seller shall then
                     issue to Buyer (i) a corrected invoice for the number of
                     Tons by which the cumulative vessel bill of lading weights
                     placed in the pile exceeds the total amount removed from
                     such Storage Pile by Buyer per its Daily Consumption
                     Reports and any Consumption Adjustment Reports, or (ii) a
                     credit memo for the number of Tons by which the total
                     amount removed from such Storage Pile by Buyer per its
                     Daily Consumption Reports and any Consumption Adjustment
                     Reports exceeds the cumulative vessel bill of lading
                     weights placed in the Storage Pile. Buyer shall pay such
                     corrected invoices by wire transfer on the next Payment
                     Date or reflect any such credit on a payment to Seller
                     subsequent to receipt of a credit memo. Buyer shall pay
                     interest on all amounts not paid as specified herein at the
                     Late Payment Rate from and including the due date to but
                     excluding the date payment is actually made.

              (ii)   Bailment Settlement Invoicing. After the Bailment Period
                     ends on March 31, 2004, Seller shall reconcile Buyer's
                     cumulative Daily Consumption Reports and any Consumption
                     Adjustment Reports issued with respect to each Storage Pile
                     established during the Bailment Period and which has not
                     been previously reconciled in accordance with subsection
                     2.5 (b) (i) above with the cumulative vessel bill of lading
                     weights of material placed onto the Storage Pile. Any
                     quantities of Pellets physically remaining in a Stock Pile
                     on such date and which have not been reported

                                       9

<PAGE>

                     by Buyer in a Daily Consumption Report or Consumption
                     Adjustment Report as consumed shall be deemed for these
                     purposes as consumed by Buyer on the Bailment Period
                     termination date. Seller shall then issue to Buyer (i) a
                     corrected invoice for the number of Tons by which the
                     cumulative vessel bill of lading weights placed in the pile
                     exceeds the total amount removed from such Storage Pile by
                     Buyer per its Daily Consumption Reports and any Consumption
                     Adjustment Reports (and including any quantities deemed as
                     consumed under this paragraph), or (ii) a credit memo for
                     the number of Tons by which the total amount removed from
                     such Storage Pile by Buyer per its Daily Consumption
                     Reports and any Consumption Adjustment Reports (and
                     including any quantities deemed as consumed under this
                     paragraph) exceeds the cumulative vessel bill of lading
                     weights placed in the Storage Pile. Payment of the
                     corrected invoice shall be made by Buyer via wire transfer
                     on the next Payment Date, or reflect any such credit on a
                     payment to Seller subsequent to receipt of a credit memo.
                     Buyer shall pay interest on all amounts not paid as
                     specified herein at the Late Payment Rate from and
                     including the due date to but excluding the date payment is
                     actually made.

              (iii)  Post-Bailment Invoicing. For Pellets delivered on or after
                     April 1, 2004 pursuant to Section 2.7, invoices shall be
                     issued upon delivery of the Pellets in accordance with
                     Section 2.7(a) and the price shall the Product Price in
                     effect at the time of such delivery. Payment shall be made
                     by Buyer via wire transfer in accordance with the payment
                     provisions set forth in Sections 2.5(c) through (g) below.

         (c) Subject to Section 2.11 below, payment shall be made for Pellets
invoiced during each Settlement Period (as hereinafter defined) on the Payment
Date (as hereinafter defined). A "Settlement Period" shall be the period falling
from [***] (the "First Settlement Period") and the period from [***] (the
"Second Settlement Period"). On the day following each Settlement Period (i.e.,
[***]) (the "Settlement Date"), Seller shall provide to Buyer a summary of all
payments to be made on the Payment Date consistent with the invoices issued in
accordance with the applicable provisions of Section 2.5(b). The Payment Date
for the First Settlement Period shall be on the immediately succeeding [***] and
the Payment date for the Second Settlement Period shall be on the immediately
succeeding [***]. In the event a Payment Date falls on a holiday, the Payment
Date shall be the day immediately following. Any deliveries of Pellets for which
an invoice is not available prior to the otherwise applicable Settlement Date
(e.g., due to delays in the normal invoice cycle) will be settled on the next
Settlement Date.

         (d) Each partial delivery or installment of Pellets shall be deemed to
be sold under a separate agreement, and no Default by Seller of or with respect
to any partial delivery or installment shall entitle Buyer to treat this
Agreement as breached or repudiated in regard to any balance or installment with
respect to which there is no Default or breach.

         (e) Buyer shall make payment in full of the amount due under each
invoice in strict compliance with the payment terms as set forth in this
Agreement without any deduction for any discount or credits, contra or setoffs
of any kind or amount whatsoever unless expressly authorized in writing by
Seller prior to the Settlement Date relating to such invoice(s). Any delinquent
invoice(s) not paid when due shall bear interest on the unpaid amount at the
Late Payment Rate specified in this Agreement.

         (f) (i) Buyer agrees to furnish Seller's Treasury Department on an
ongoing basis (1) unaudited quarterly financial statements of its operations,
including income statements, balance sheets, cash flow statements and borrowing
bases, all in substantially the form presented in its Business Plan, (2) audited
year-end financial statements and (3) such other financial data or information
as may be required to reasonably assure Seller of Buyer's continuing ability to
perform this Agreement and comply fully with its

                                       10

<PAGE>

payment obligations at all times as to both existing and future product
shipments hereunder. For purposes of this subsection (f), Seller confirms its
obligations under that certain Confidentiality Agreement dated as of August 16,
2002 by and between Seller and Buyer. Any failure of Buyer to timely provide any
of the documents or information required by this paragraph shall be deemed a
material breach of this Agreement that entitles Seller to invoke any of the
remedies available to Seller under this Agreement and/or at law or in equity.

              (ii) Beginning on and continuing for each quarterly period after
January 1, 2003, Republic agrees to submit to Seller on a quarterly basis the
financial information noted in subsection (f) (i) above. Upon receipt of such
information, Seller agrees to make a comprehensive review of all such financial
information submitted to determine if, in Seller's sole judgment, there is a
basis to modify the [***] credit, payment and settlement terms as set forth in
subsection 2.5(c) above. Seller agrees to make this financial review in good
faith; provided, however, there is no assurance or obligation that such a review
will result in a modification of any such credit/payment/settlement terms. In
the event the parties agree to a modification to the credit/payment/settlement,
then the relevant, parallel provisions of the Coke Supply Agreement, this Pellet
Supply Agreement, and the Rounds Supply Agreement shall be amended accordingly
to reflect the agreed to modifications. The parties agree that this Section
2.5(f)(i) and (ii), or any dispute arising hereunder, shall be excluded from
Section 4.3 hereof.

         (g) In the event, in Seller's sole judgment, of any material adverse
change in the financial condition of Buyer, or deterioration in its liquidity
and/or then current ability to discharge its existing or future payment
obligations hereunder (a "Material Adverse Change"), Seller shall have the right
to require Buyer to provide additional security for its obligations hereunder.
The form, nature and sufficiency of such additional security shall be in
Seller's sole and absolute discretion. If Buyer does not provide such additional
security within 10 days of written notice from Seller that a Material Adverse
Change has occurred and that additional security is required, Seller may (i)
suspend further shipments of Pellets until such additional security is provided,
(ii) require Buyer to pay for future deliveries of Pellets on a cash-on-delivery
basis, or (iii) immediately terminate this Agreement. Seller agrees that minor
deviations from the Business Plan will not be deemed to be a Material Adverse
Change hereunder unless such minor deviations continue for three or more
consecutive calendar months.

         2.6 Delivery, Title and Risk of Loss: Bailment Period.

         (a) During the Bailment Period, all Pellets covered hereunder shall be
tendered by Seller to Buyer F.O.B. end of boom of self unloading vessel in full
vessel quantity at the Lorain Works facility for storage in designated bailment
Storage Piles hereunder, unless otherwise agreed by the parties prior to the
shipment of the Pellets. Buyer shall be responsible for providing a safe berth
at Lorain Works for all vessels making deliveries hereunder. Vessels in excess
of 767 feet in length shall not be used to make deliveries hereunder, unless
agreed to in advance in writing by Buyer.

         (b) Pellets tendered to Buyer hereunder shall be placed in designated
bailment storage consisting of individual Storage Piles and held by Buyer as a
bailee of Seller and shall remain the sole and exclusive property of Seller,
with legal and equitable title to all Pellets remaining in Seller, until Buyer
removes Pellets from a Storage Pile for use in a blast furnace. Buyer may only
remove Pellets from the bailment Storage Piles for consumption in its blast
furnaces. Until such removal by Buyer for use in its blast furnaces, Buyer shall
have no interest, legal or equitable, in the Pellets. Risk of loss, however,
shall pass to Buyer upon receipt by Buyer end of boom by the self-unloading
vessel at Lorain Works. The bailment storage area shall be kept separate and
reserved and shall be used by Buyer exclusively for its receipt and storage of
Pellets tendered by Seller for bailment storage hereunder.

         (c) This Agreement is intended to create a true bailment. Buyer shall
execute UCC-1 forms and

                                       11

<PAGE>

any other documents relating to Seller's ownership interest and shall take all
actions and extend full cooperation to Seller as necessary to create and perfect
Seller's ownership interest in the bailment Pellets.

         (d) Buyer shall, at its sole expense, receive, handle, place, maintain
and store in bailment storage area in segregated Storage Piles all Pellets
supplied by Seller hereunder, in a manner designed to assure the safe storage
and protection of such Pellets from loss, damage or deterioration and to protect
and insulate the Pellets and value thereof from any security interest, claim or
adverse action of any creditor of Buyer or any other party. Buyer shall
prominently place signs adjacent to such segregated Storage Piles which identify
the Storage Piles as the property of Seller. Buyer shall provide the same level
of care for Pellets held in bailment storage hereunder that it has traditionally
provided for Pellets owned by Buyer and stored at Lorain Works.

         (e) A cleared area shall be created by Buyer at Buyer's expense prior
to the construction of each Storage Pile held in bailment hereunder, and such
cleared space shall be confirmed in Form 1 (attached as Schedule E to this
Agreement) to be submitted by Buyer to Seller prior to the construction of a new
pile. Each Storage Pile of Pellets shall consist of the load delivered by not
less than one lake vessel. A vessel shall discharge its entire load into a
designated reserve Storage Pile, and thereafter the cumulative weight of each
newly constructed Storage Pile of Pellets shall equal the sum of the unloading
vessel's bill of lading weights. When a reserve Storage Pile is fully
constructed and complete, Buyer shall notify Seller immediately by fax
communication using Form 2 (attached as Schedule F to this Agreement).

         (f) Buyer shall remove and use Pellets from each Storage Pile held in
bailment hereunder strictly in accordance with the procedures specified herein.
For each type of Pellets being tendered to Buyer for bailment storage hereunder,
Buyer shall maintain a `working' Storage Pile and one or more `reserve' Storage
Piles of Pellets. During the unloading of a vessel and placement of Pellets in a
reserve Storage Pile, there shall be no Pellets removed from that Storage Pile.
Restocking and consumption of Pellets shall be permissible only when a Storage
Pile is constructed fully and Buyer advises Seller by transmission of Form 2
that a particular Storage Pile is complete. Further, Buyer may remove Pellets of
each type only from a working Storage Pile until such working Storage Pile is
used fully and is depleted. Buyer shall use all reasonable efforts to utilize
Storage Piles of each type of Pellet on a first-in-first-out basis in order to
ensure that Pellets of each type received at Lorain Works during a Shipping
Season are consumed before Pellets received during a subsequent Shipping Season
are utilized. Upon depletion of any working Storage Pile of Pellets, Buyer shall
immediately submit to Seller a new Form 1.

         (g) On a daily basis throughout the Bailment Period of this Agreement,
Buyer shall send by facsimile or electronic mail to Seller a written Pellet
consumption report for each Buyer furnace then operating (the "Daily Consumption
Report"). In addition to this Daily Consumption Report, Buyer shall provide to
Seller in writing any adjustments to blast furnace Pellet consumption and any
other information reasonably intended to inform and fully advise Seller of
Buyer's consumption of Pellets and the quantity of Pellets then remaining in the
working pile of Pellets (the "Consumption Adjustment Reports"). Buyer agrees to
maintain accounts and records satisfactory to Seller, including the Daily
Consumption Reports, the Consumption Adjustment Reports, and all related records
of Buyer's removal and use of Pellets, and a true, accurate and complete record
of all Pellets received and stored by Buyer as bailee from time to time.
Accurate inventory control of the Pellets in each of the Storage Piles shall be
maintained at all times by Buyer.

         (h) Based upon the above-described reports and information timely
provided by Buyer, Seller shall invoice Buyer in accordance with Section 2.5(b).
Adjustments by Buyer to its Daily Consumption Report may be reflected by Seller
in the invoice for the following Settlement Period. Buyer's failure or refusal,
for any reason, to fax to Seller a blast furnace production and Daily
Consumption Report for each Buyer blast furnace then operating or to provide
other reasonable information requested by Seller concerning Pellet consumption
and/or Pellets held in bailment hereunder, when and as requested by Seller,
shall be

                                       12

<PAGE>

considered a Default hereunder.

         (i) Upon 24-hour notice from Seller, Buyer shall afford representatives
of Seller full access to and opportunity to examine all reasonable information
and/or documents requested by Seller concerning Buyer's Pellet consumption
and/or Pellets held in bailment hereunder at any time during Buyer's regular
business hours during the term of this Agreement and for a period of one year
thereafter.

         (j) Buyer shall permit Seller's representatives, at any time during
Buyer's regular business hours during the term of this Agreement, upon arrival
at Lorain Works without prior notice, to make a physical inspection and take an
inventory, at Seller's expense, of all bailed Pellets in the possession of
Buyer; provided, however, such representatives may be accompanied by Buyer's
representatives during such inspection and shall comply with all applicable
plant safety rules during such inspection.

         (k) At all times while the Pellets are in its possession as bailee,
Buyer shall keep the same free of all taxes, liens, encumbrances and security
interests. Any sums of money, including attorneys' fees that are paid by Seller
to effect a release or discharge thereof, or to replevin or take possession of
the Pellets, shall be paid on demand by Buyer as an express obligation assumed
by Buyer hereunder.

         (l) At any time that Buyer is in Default hereunder, and Seller has
provided notice of Default to Buyer pursuant to Section 3.1(iii), (iv) or (v)
hereunder, Seller may, until such Default is cured, require that Buyer pay cash
in advance before removing any Pellets from any Storage Pile held in bailment
hereunder. Seller shall have the right during any such period to station
representatives at Lorain Works to ensure that no Pellets held in bailment are
removed from storage without advance cash payment.

         (m) If this Agreement is terminated for any reason, Seller may require
Buyer to continue to store any Pellets held in bailment at Lorain Works, without
charge to Seller, for a period not to exceed one year from the date of
termination.

         (n) If this Agreement is terminated for any reason, in addition to its
other legal rights or remedies, Seller may demand that Buyer make all such
Pellets then stored in Buyer's ore yard available to Seller immediately and
unconditionally for return to Seller. Upon demand by Seller, Buyer shall cease
immediately any further removal, consumption or use of the Pellets held in
bailment in its furnaces or for any other purpose and shall permit Seller or any
sheriff or other officer of the law to take immediate possession of such Pellets
without demand or further notice to Buyer and without legal process. For this
purpose, Seller shall have the right, and Buyer does hereby authorize and
empower Seller, to enter upon the Buyer's Lorain Works or other premises
wherever the Pellets may be and, at Seller's expense, take possession of and
remove the Pellets without liability for trespass or other action.

         2.7 Delivery, Title and Risk of Loss: 2004 Shipping Season.

         At all times during the 2004 Shipping Season:

         (a) delivery of Pellets to Buyer shall take place F.O.B. end of boom of
self unloading vessel in full vessel quantity at the Lorain Works facility, or
in such other manner or at such other place as shall be agreed upon by the
parties in writing prior to the shipment of Pellets; and

         (b) except as otherwise provided herein, title and risk of loss and
damage to the Pellets shall pass from Seller to Buyer when the Pellets are
delivered in accordance with this Section 2.7.

         2.8 Terms and Conditions of Sale.

                                       13

<PAGE>

         (a) In the event that any shipment of Pellets does not conform to the
applicable Specifications, Buyer shall promptly notify Seller in writing of the
nonconformity (and in any event, no later than 14 days after removal from the
Storage Pile by Buyer in case of Pellets subject to the bailment and 14 days
after offloading from the vessel in the case of Pellets not subject to the
bailment), which notice shall include copies of all analyses and other
documentation describing and quantifying the nonconformity; and Seller shall
have fourteen (14) days to investigate and cure such nonconformity, which may
include an equitable price adjustment. In the event that the parties are unable
to agree to an appropriate disposition of the nonconforming material within said
fourteen (14) days after notice from Buyer, either party may submit such dispute
for resolution in accordance with Section 4.3 hereof.

         (b) In the event of a conflict between the terms and conditions of this
Agreement and the terms or conditions contained in any notice, shipment,
specifications, purchase order, sales order, acknowledgement or other document
which may be used in connection with the transactions contemplated by this
Agreement, the terms and conditions of this Agreement shall supersede and
govern, unless expressly waived in accordance with Section 4.15.

         2.9 Warranty.

         (a) All Pellets sold by Seller hereunder will conform to the
Specifications. OTHER THAN AS AFORESAID, SELLER MAKES NO WARRANTY OF ANY KIND,
EXPRESS OR IMPLIED, AND ALL IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE OR OTHERWISE ARE HEREBY EXPRESSLY DISCLAIMED BY SELLER AND
EXCLUDED HEREUNDER. Seller shall not be liable for any incidental or
consequential damages, losses or expenses based upon, resulting from, or arising
out of any use of, or the inability to use, the Pellets for any purpose
whatsoever.

         (b) Without limiting the generality of Section 2.9(a), Seller makes no
warranty with respect to and shall have no liability to Buyer in any case where
Pellets satisfy the Specifications. If Pellets do not satisfy the Specifications
but reasonably can be used by Buyer, then price adjustments shall be made in
accordance with Schedule D. [***]

         2.10 Most Favored Customer.

         If, during the term of this Agreement, Seller sells and/or agrees to
sell taconite ore pellets of similar or better specifications in similar
quantities to any third party, under substantially similar circumstances and
conditions, at prices and/or upon terms and/or conditions which are more
favorable than those effective pursuant to this Agreement, then Seller shall
immediately notify Buyer, and offer to extend to Buyer under this Agreement such
more favorable prices, terms and/or conditions.

         2.11 Cross-Default; Setoff; Right to Substitute New Terms

         (a) Any Default by Republic under the Coke Supply Agreement, the Rounds
Agreement or the Services Agreement shall be deemed a Default of Republic under
this Agreement.

         (b) Only in the event of a payment Default, which is defined as any
failure by Republic at any time to make a payment in full when due under Section
2.5 of this Agreement, Section 2.6 of the Coke Supply Agreement and/or Section
3.2 of the Services Agreement (for any reason other than exercising its rights
upon a payment Default by LPM or USS), LPM and/or USS may (i) defer payment of
any amounts due Republic under the Rounds Supply Agreement and/or the Services
Agreement until such time as any and all delinquent amounts due and owing USS
and/or LPM under this Agreement, the Coke Supply Agreement and/or the

                                       14

<PAGE>

Services Agreement (the "Delinquent Amount") are paid, and/or (ii) deliver to
Republic a `Notice of Intent to Effect Set-off. ` Provided that Republic has not
remitted to USS the Delinquent Amount within 5 days of Republic's receipt of the
Notice of Intent to Effect Set-off, LPM and/or USS may, on the 5th day following
the delivery of such Notice of Intent to Effect Set-off, set-off the Delinquent
Amount against the amounts owed by LPM and/or USS to Republic under the Rounds
Supply Agreement and/or the Services Agreement as of the date of such Notice. If
any Delinquent Amount (remaining due after LPM and/or USS's application of
set-off hereunder) is not paid in full within 10 days following the delivery of
such Notice of Intent to Effect Set-off, USS shall have the right to suspend
further shipments of Pellets to Buyer until the Delinquent Amount (including any
other delinquent amounts owed to USS and/or LPM under this Agreement, the Coke
Supply Agreement and/or the Services Agreement that accrue after issuance of the
Notice) are paid in full. Interest on the Delinquent Amount shall accrue at the
Late Payment Rate specified in this Agreement.

         (c) In the event that the aggregate amounts due USS in connection with
Republic's purchases of Pellets hereunder and Republic's purchases of coke
(including without limitation Coke) under the Coke Supply Agreement at any time
exceed by $1,000,000 or more the amount due Republic in connection with USS's
purchases of Rounds under the Rounds Supply Agreement (the "Excess"), Republic
shall remit to USS an amount equal to the Excess within three days of the
Settlement Date immediately succeeding the date that such Excess occurs. If the
Excess is not paid in full by such date, USS shall have the right to withhold
and/or setoff against the Excess any amounts due from USS to Republic under the
Services Agreement. If the Excess is not paid in full within 10 days of such
Settlement Date, USS shall have the right to suspend further shipments of
Pellets to Buyer until the Excess is paid in full; provided, that Seller agrees
not to suspend such shipments during such time so long as payment on deliveries
of Pellets is made by Buyer on a cash-on-delivery basis. Interest on the Excess
shall accrue at the Late Payment Rate specified in this Agreement.

         (d) Notwithstanding any provision herein to the contrary (including
without limitation the provisions of Section 2.5 hereof), in the event that (i)
LPM ceases operations at the Pipemill either on a temporary or permanent basis,
(ii) USS sells or otherwise transfers (or enters into an agreement to sell or
transfer) ownership of the Pipemill assets or operations to a third party, or
(iii) USS's purchases of Rounds under the Rounds Supply Agreement and/or
utilities under the Services Agreement are reduced for any reason such that the
Excess exceeds $1,000,000 in three consecutive Settlement Periods, then USS
shall have the right to substitute new or revised payment terms and conditions
for the payment terms which are then in effect hereunder such that payments due
by Buyer to USS hereunder remain secured at all times.

         (e) Republic hereby agrees to continue to perform fully its obligations
hereunder and under the Rounds Supply Agreement, the Coke Supply Agreement and
the Services Agreement notwithstanding the exercise by USS of any of its rights
hereunder or under Section 2.5.

                       ARTICLE III - TERM AND TERMINATION

         3.1 Term.

         This Agreement shall be effective as of the date set forth in the
preamble hereto and shall remain in full force and effect through the end of
the 2004 Shipping Season unless terminated as follows:

              (i)    By written mutual consent of the parties at any time;

              (ii)   By either party if USS permanently ceases production of
                     Pellets at its Minntac facility or Republic ceases to
                     operate the Lorain Works; provided, that Republic or USS,
                     as the case may be, will give the other immediate notice if
                     it intends to cease, or anticipates cessation of, such
                     production or operations;

                                       15

<PAGE>

              (iii)  By either party if the other party is in Default under any
                     of the provisions of this Agreement (except as otherwise
                     expressly provided in items (iv), (v) and (vi) below) and
                     fails to correct such Default within 60 days of written
                     notice of such Default;

              (iv)   By USS pursuant to Section 2.5(f) hereof in the case of a
                     Material Adverse Change;

              (v)    By USS if Republic, at any time, fails (A) to make any
                     payment when due under this Agreement, (B) to comply with
                     the applicable credit and/or payment terms (as established
                     or adjusted hereunder) or (C) to provide the financial
                     statements and information pursuant to Section 2.5(g)
                     hereof; or

              (vi)   By Republic, upon 90 days' prior written notice, if LPM
                     terminates the Rounds Supply Agreement for any reason other
                     than Default of the Buyer thereunder.

In addition to the rights of USS to terminate this Agreement pursuant to
subsection 3.1 (v) above, Seller shall have the right, upon the occurrence of
any of the events set forth therein, (X) to suspend production and/or refuse to
make further shipments or deliveries of Pellets or otherwise suspend its further
performance under this Agreement or (Y) to declare immediately due and payable
all then outstanding and unpaid invoices covering Pellets previously delivered
hereunder.

As used herein, "Default" means failure of either party to perform, keep or
observe any material obligation, provision, warranty or condition contained
herein, unless such performance is otherwise excused by the terms of this
Agreement.

         3.2 Termination.

         Seller and Buyer agree that upon and after termination of this
Agreement:

              (i)    All Monthly Delivery Schedules or Amended Monthly Delivery
                     Schedules previously given that are binding in accordance
                     with the terms hereof, and Buyer's obligation to pay for
                     such deliveries made pursuant to such schedules, shall
                     continue in full force and effect.

              (ii)   Buyer shall remain obligated to make any payment that
                     became due to Seller hereunder prior to termination.

              (iii)  Liabilities of any party arising from any act, Default or
                     occurrence prior to termination shall remain with such
                     party.

              (iv)   The parties' rights and obligations under Sections 2.5,
                     2.9, 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8, 4.13, 4.16 and
                     this Article III shall survive the termination of this
                     Agreement.

                           ARTICLE IV - MISCELLANEOUS

         4.1 Intent of Agreement.

         The parties hereto intend that they shall mutually benefit from the
terms, conditions and provisions of this Agreement and that no party shall be
either unreasonably enriched or unreasonably harmed by any

                                       16

<PAGE>

implementation and/or interpretation of said terms, conditions and provisions.
This Agreement shall be administered and interpreted in order to fulfill the
intent stated in this Section 4.1. Any arbitrator(s) considering disputes
pursuant to Section 4.3 hereof shall attempt to render a decision which fulfills
the intent stated in this Section 4.1.

         4.2 Payment Errors.

         (a) If either Buyer or Seller believes that there has been an error in
an amount paid or the timing of any payment hereunder, then such party shall
notify the other party of such alleged error and shall provide such written
evidence of the error as is available at the time of such notice. Each party
shall provide the other with sufficient records relating to the matter so as to
permit the parties to attempt to resolve the inconsistency.

         (b) Following the determination of whether an error occurred, any
overpayment or underpayment found shall be remedied by the party that benefited
from such error.

         (c) Notwithstanding the foregoing, neither party may question the
accuracy, correctness, timing or amount of any payment under this Agreement
unless it notifies the other party of its disagreement within the 12 months
immediately following the date such payment was due.

         4.3 Dispute Resolution.

         At any time and from time to time, if the parties are unable to resolve
a dispute concerning Buyer's or Seller's performance or nonperformance of their
obligations under this Agreement (excepting any disputes excluded herefrom),
Buyer or Seller, as the case may be, shall provide written notice to the other
of such dispute as provided in Section 4.9 hereof. It is mutually agreed that
any Default by Buyer in its payment obligations hereunder (or any dispute
relating thereto), and/or any dispute relating to USS's exercise of its rights
under Section 2.11 hereof shall not be subject to (and are excluded from) the
provisions of this Section 4.3; it being agreed that any such excluded disputes
(as aforesaid) shall be pursued and adjudicated by the parties in a court of
competent jurisdiction. Any dispute covered by this Section 4.3 shall be
resolved by using the procedures for Mediation and Arbitration set forth below:

         (a) Mediation. At any time after a party has provided a written notice
of dispute to the other party, but prior to the time that either party commences
arbitration pursuant to Article 4.3(b) herein, the parties may agree to submit
the dispute to non-binding mediation under terms and conditions satisfactory to
both parties.

         (b) Arbitration. At any time after a party has provided a written
notice of dispute to the other party, including at any time during any
non-binding mediation agreed to by the parties, either party may submit the
matter in dispute to a pre-designated arbitrator or, in the event such
arbitrator has not been selected or is unavailable, to a three member arbitral
panel to which each Party shall appoint one member and those two members shall
appoint a third member. Such arbitration shall be governed by the CPR Rules for
Non-Administered Arbitration of Business Disputes. Pending the issuance of an
arbitral decision, the Parties shall continue their full and normal operations
and obligations in accordance with this Agreement. All arbitral awards for the
payment of money and/or for any retroactive adjustment of any interim prices
paid hereunder shall accrue interest at the Late Payment Rate starting from the
date on which any amount is due or the date on which the interim payment was
due.

         (c) Consent to Enforceability. Each of the parties consents and agrees
that any arbitral award rendered pursuant to Subsection 4.3(b) shall be final,
non-appealable and binding against the parties and their respective assets, and
may be enforced by any court of competent jurisdiction.

                                       17

<PAGE>

         4.4 Records.

         Seller shall maintain such detailed and accurate records relating to
the sales of Pellets hereunder as shall be necessary for the calculation of
amounts payable under Sections 2.5. At all times on or before the date that is
12 months after the date of termination of this Agreement, representatives of
Buyer and its auditors shall be entitled, at Buyer's expense, to inspect and
audit such records and accounts and to consult with Seller's personnel in a
reasonable, non-intrusive manner upon reasonable notice and during business
hours. Seller shall have the right to require that any audit be conducted by a
mutually agreeable independent auditor and that the details of the information
examined in such audit be kept confidential from Buyer, except to the extent
necessary to resolve any controversy that is pursued in good faith. Such audit
expense shall be borne by Buyer.

         4.5 Confidentiality.

         (a) Buyer and Seller acknowledge that all information about the
businesses, properties, finances, prospects, marketing, processes, products,
methods, computer programs, procedures, machinery, apparatus or trade secrets
owned, or held or used (including under license from or agreement with third
parties) by the other that is disclosed to Buyer or Seller, as the case may be,
during the course of performing its obligations under this Agreement is the
property of, and is proprietary and confidential to the disclosing party (the
"Proprietary Information").

         (b) Buyer and Seller agree that they shall use reasonable efforts not
to make any disclosure of the other's Proprietary Information (including methods
or concepts utilized therein other than those commonly known to professionals in
the field) to any person other than officers, employees and agents of and
consultants to Buyer or Seller to whom such disclosure is necessary or
convenient for performance of its obligations hereunder and except as may be
required by applicable legal requirements or by a court of competent
jurisdiction. Buyer and Seller shall appropriately notify each officer,
employee, agent and consultant to whom any such disclosure of the other's
Proprietary Information is made that such disclosure is made in confidence and
shall be kept in confidence by such Person.

         (c) Each of Buyer and Seller agrees to use diligent efforts in
accordance with customary and reasonable commercial practice and at least with
the same degree of skill and care that it would manifest in protection of its
own proprietary and confidential property to protect the other's Proprietary
Information.

         (d) Each of Buyer and Seller agrees to notify the other immediately in
the event that it becomes aware of the unauthorized possession or use of the
other's Proprietary Information (or any part thereof) by any third Person,
including any of its officers, employees, agents or consultants. Each of Buyer
and Seller further agrees to cooperate with the other in connection with its
efforts to terminate or prevent such unauthorized possession or use of such
Proprietary Information. Seller or Buyer, as the case may be, shall pay the
nonproprietary party's reasonable out-of-pocket expenses in so cooperating,
unless the unauthorized possession or use of the Proprietary Information
resulted from the fault or negligence of such nonproprietary party.

         (e) Notwithstanding any other provision of this Agreement, the
obligation of Buyer and Seller to maintain the confidentiality of the other's
Proprietary Information shall not apply to any portion of such Proprietary
Information that:

              (i)    was in the public domain at the time of Buyer's or Seller's
                     disclosure to the other;

              (ii)   enters the public domain through no fault of the
                     nonproprietary party;

                                       18

<PAGE>

              (iii)  was communicated to the nonproprietary party by a third
                     party free of any obligation of confidence known to the
                     nonproprietary party; or

              (iv)   was developed by officers, employees or agents of or
                     consultants to the nonproprietary party independently of
                     and without reference to the Proprietary Information;

provided, however, that Proprietary Information which is specific shall not be
considered to be within the exception provided by this Section 4.5(e) merely
because it is embraced by general information in the public domain; provided
further, that any combination of features within the Proprietary Information
shall not be deemed within such exception merely because individual features are
within the public domain, but only if the combination itself is within the
public domain.

         4.6 Severability.

         In case any one or more of the provisions contained in this Agreement
is adjudged to 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, except to the
extent necessary to avoid an unjust or inequitable result.

         4.7 Rights and Remedies; No Consequential Damages.

         The rights and remedies granted under this Agreement shall not be
exclusive but shall be in addition to all other rights and remedies available at
law or in equity, including, but not limited to, claims for breach of contract,
except that Buyer and Seller agree that in no event shall either party be liable
to the other for any indirect, special or consequential damages or lost profits
as a result of a breach of any provision of this Agreement.

         4.8 Costs and Expenses.

         Each of Buyer and Seller shall bear its own expenses incurred in
connection with the negotiation, preparation and execution of this Agreement.

         4.9      Notices.

         All notices or other communications pertaining to this Agreement shall
be deemed sufficient if made in writing and delivered (i) in person to an office
of the intended recipient, or (ii) by registered or certified mail, return
receipt requested; or (iii) by overnight delivery service which provides proof
of delivery; or (iv) by telecopy, with a duplicate copy sent via first class
mail, postage prepaid, addressed as follows or to such other address as either
party shall designate in writing:

                  If to Seller:

                           UNITED STATES STEEL CORPORATION
                           600 Grant Street - Room 1784
                           Pittsburgh, Pennsylvania 15219-2800
                           Attn:  Director - Raw Materials P. P. D. & S
                           Tel:   (412) 433-3620
                           Fax:   (412) 433-3624

                                       19

<PAGE>

                  If to Buyer:

                           REPUBLIC ENGINEERED PRODUCTS, LLC
                           3770 Embassy Parkway
                           Akron, Ohio 44333-8367
                           Attn:   Vice President of Purchasing
                           Tel:  (330) 670-3172
                           Fax: (330-670-7006)

         4.10 Assignment.

         (a) Except as provided in Section 4.10(c), neither party can without
the prior written consent of the other assign any of its rights or benefits or
delegate any of its duties or obligations under this Agreement, and any
attempted assignment or delegation which is not permitted under Section 4.10(c)
shall be null, void and without effect; provided however, Buyer may grant a
security interest in the rights, benefits, duties and obligations under this
Agreement, without the consent of Seller. Buyer shall provide Seller written
notice of the granting or revision of any such security interests.

         (b) The rights, benefits, duties and obligations of each party hereto
shall inure to the benefit of, and be binding upon, any successors, assigns or
delegates permitted under Section 4.10(c).

         (c) Either party hereto may delegate any of its duties or obligations
under this Agreement to any person, but except as otherwise provided in this
Agreement such party shall remain liable for the full performance of such duties
and obligations. Either party hereto may assign or delegate any of its rights,
benefits, duties or obligations hereunder (i) to any person if it has received
the prior written consent of the other party, which consent shall not be
unreasonably withheld, conditioned or delayed, (ii) to its legal successor if it
merges (whether or not it is the surviving corporation) or consolidates with one
or more other corporations or (iii) to any person to whom either party has made
any sale, lease, transfer or other disposition of all or substantially all of
its assets; provided, however, that neither party may make an assignment or
delegation described in clauses (ii) and (iii) above unless there are delivered
to the other party such written assumptions, affirmations and/or legal opinions
as such other party may reasonably request to preserve its rights and remedies
under this Agreement.

         4.11 Counterparts.

         This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute a
single instrument.

         4.12 Headings.

         The headings contained in this Agreement are for convenience of
reference only and do not modify or affect in any way the meaning or
interpretation of this Agreement.

         4.13 Governing Law.

         This Agreement shall be construed and enforced in accordance with, and
governed by, the internal laws of the State of Ohio, excluding its conflict of
laws provisions.

         4.14 No Third Party Rights.

         This Agreement is intended to be solely for the benefit of the parties
hereto and is not intended to

                                       20

<PAGE>

confer any benefits upon, or create any rights in favor of, any Person other
than the parties hereto, except as expressly provided to the contrary elsewhere
in this Agreement.

         4.15 Waiver and Amendments.

         No waiver shall be deemed to have been made by either party of any of
its rights under this Agreement unless the same shall be in a writing that
expressly refers to this Section 4.15 and is signed on its behalf by its
authorized officer. Any such waiver shall constitute a waiver only with respect
to the specific matter described in such writing and shall in no way impair the
rights of the party granting such waiver in any other respect or at any other
time. This Agreement shall not be amended or modified except by an instrument in
writing signed by the party against whom enforcement is sought.

         4.16 Force Majeure.

         (a) Except for obligations to make payments hereunder, neither party
hereto shall be liable for any failure to perform the terms of the Agreement
when such failure is due to Force Majeure. "Force Majeure" means acts of God,
strikes, lockouts, or other labor disputes or disturbances, civil disturbances,
arrests and restraint from rulers or people, interruptions or terminations by or
as a result of government or court action or orders, or present and future valid
orders of any regulatory body having jurisdiction, acts of the public enemy,
wars, riots, blockades, insurrections, inability to secure or delay in securing
labor or materials by reason of allocations promulgated by authorized
governmental agencies, epidemics, landslides, lightning, earthquakes, fire,
storm, floods, washouts, explosions, breakdowns or accidents, inability to
obtain transportation services, or any other cause, whether of the kind
enumerated or otherwise, not reasonably within the control of the party claiming
Force Majeure. The Force Majeure shall, so far as possible, be remedied with all
reasonable dispatch. The settlement of strikes or lockouts or other labor
disputes or disturbances shall be entirely within the discretion of the party
having the difficulty, and the above requirement that any Force Majeure shall be
remedied with all reasonable dispatch shall not require the settlement of
strikes, lockouts, or labor disputes or disturbances by acceding to the demands
of any opposing party therein when such course is inadvisable in the discretion
of the party having the difficulty.

         (b) The party whose performance is affected or who has reason to
believe such performance may be affected by reason of Force Majeure shall as
promptly as possible give notice thereof to the other party and shall confirm
such notice in writing if requested, giving the particulars of the event,
including supporting documentation if available. The party so affected shall
also take reasonable steps to resume performance hereunder with the least
possible delay.

         4.17 Entire Agreement.

         This Agreement (including the Schedules hereto) sets forth the entire
understanding and agreement between the parties as to the matters covered herein
and supersedes and replaces any prior understanding, agreement or statement of
intent, in each case written or oral.

                         [Signatures on following page]

                                       21

<PAGE>

         IN WITNESS WHEREOF, this Agreement has been executed and delivered to
be effective on the date first above written.

                       UNITED STATES STEEL CORPORATION

                       By:          /s/ R.M. Efkeman

                       Name:        R. M. Efkeman
                                ---------------------------------------------

                       Title:       Director, Raw Materials P.P.D.& S.
                                ---------------------------------------------

                       REPUBLIC ENGINEERED PRODUCTS, LLC

                       By:          /s/ J.T. Kuntz

                       Name:        J. T. Kuntz
                                ---------------------------------------------

                       Title:       V.P., Integrated Supply Chain Management
                                ---------------------------------------------

                                       22

<PAGE>

                                   SCHEDULE A
                                   ----------
                                      2002
                 QUALITY SPECIFICATION FOR MINNTAC ACID PELLETS
                                     Minntac

<TABLE>
<CAPTION>
                                                                                    Percentage (Dry Basis)
                                                               --------------- -------------- ---------------- -----------------
                                                                  Monthly         Monthly          Lower            Upper
                 BELOW FROM R.R. CAR TOP SAMPLES:                   Mean         Std. Dev.      Spec Limit        Spec Limit
                 --------------------------------              --------------- -------------- ---------------- -----------------
<S>                                         <C>                   <C>          <C>                 <C>          <C>
                            CHEMISTRY
                          Controlled Variables
                                         SiO2 %                   5.40         0.12                5.04         5.76
                                           H2O % (Summer)          2.5         0.7                   --         4.60
                                                 (Winter)          1.8         0.8                   --         4.20

                                                                                                        Process Range
                                                                                              ----------------------------------
                          Consequent Variables %                                              Minimum          Maximum
                          ----------------------                                              -------          -------
                                          Fe                     65.50         0.12              65.14         65.86

                                        Typical
                                   Minor Elements %
                                         Al2O3                     0.20
                                          CaO                      0.40
                                          MgO                      0.35
                                          K2O                      0.021
                                         Na2O                      0.022
                                           P                       0.012
                                           S                       0.002
                                         TiO2                      0.021
                                          Mn                       0.07
                                          ZnO                      0.002
              BELOW Based on 041 Conveyor Composite            TRAINS:
     --------------------------------------------------------- ---------------
                         PHYSICAL QUALITY                      TRAINS                              Lower            Upper
                                       Size %                  Mean                           Spec Limit       Spec Limit
                                                               ---------------                ---------------- -----------------
                                       +1/2 inch                   7.5            -               -            10.0
                                       +1/4 inch                 98.5             -              97.5             -

                                   Tumble Index (%)
                                   ----------------
                                       +1/4 inch                 97.0             -              96.0             -
                                       -28 mesh                    2.5            -               -             3.0
                                 Compression Strength
                                 --------------------
                                        Pounds                 500                -              450
                                 % less than 200 pounds            5.0            -               -             6.0

                                                                Weekly
                   (ISO)         Low Temp. Degradation           Mean
                                 ---------------------          -------
                                     Static %+1/4                92.0                            90.0             -
                                        w/2% H2                                                   -               -
                   (ISO)         Reducibility, dR/dT40
                                 ---------------------
                                       %/Minute                   0.80                            0.70            -

Republic Engineered Products, LLC                        United States Steel Corporation

Name:                                                    Name:
       ----------------------------------------------           ----------------------------------------------
Title:    V.P., Integrated Supply Chain Management       Title:    Director, Raw Materials
Date:                                                    Date:
         --------------------------------------------             --------------------------------------------

Specification valid through December 31, 2002
</TABLE>

<PAGE>

                                   SCHEDULE B
                                   ----------
           2002 QUALITY SPECIFICATION FOR MINNTAC USS FLUXTAC PELLETS
                                    060 GRADE

<TABLE>
<CAPTION>
                                                                                    Percentage (Dry Basis)
                                                               --------------- -------------- ---------------- -----------------
                                                                  Monthly         Monthly          Lower            Upper
                 BELOW FROM R.R. CAR TOP SAMPLES:                   Mean         Std. Dev.      Spec Limit        Spec Limit
                 -------------------------------               --------------- -------------- ---------------- -----------------
<S>                                         <C>                   <C>          <C>                 <C>          <C>
                            CHEMISTRY
                            ---------
                            Controlled Variables
                            --------------------

                                        SiO2 %                    4.25         0.09                3.98         4.52
                                      B/A (Ratio)                 1.04         0.04                0.92         1.16
                                    H2O % (Summer)                 2.5         0.7                 -            4.6
                                                     (Winter)      1.8         0.8                 -            4.2
                                                                                                        Process Range
                                                                                              ----------------------------------
                                Consequent Variables %                                        Minimum          Maximum
                                ----------------------                                        -------          -------
                                          Fe                     63.58         0.14              63.16         64.00
                                          CaO                      3.52        0.13                3.13          3.91
                                          MgO                      1.10        0.04                0.98          1.22
                                   Minor Elements %
                                   ----------------
                                         Al2O3                     0.20
                                          K2O                      0.021
                                         Na2O                      0.022
                                           P                       0.012
                                           S                       0.002
                                         TiO2                      0.021
                                          Mn                       0.07
                                          ZnO                      0.002
              BELOW Based on 041 Conveyor Composite            TRAINS:
     --------------------------------------------------------- ---------------
                         PHYSICAL QUALITY
                         ----------------                      TRAINS                              Lower            Upper
                                       Size %                   Mean                           Spec. Limit      Spec Limit
                                       ------                 ---------------                ---------------- -----------------
                                       +1/2 inch                 10.0             -               -               17.5
                                       +1/4 inch                 98.0             -              97.0               -

                                   Tumble Index (%)
                                   ----------------
                                       +1/4 inch                 96.0             -              95.0               -
                                       -28 mesh                    3.0            -               -                4.0

                                 Compression Strength
                                 --------------------
                                        Pounds                 445                -              400
                                  % less than 200 pounds          5.0             -               -                6.5

                                                                 Weekly
                   (ISO)         Low Temp. Degradation            Mean
                                 ---------------------         --------------
                                     Static %+1/4                87                              84                 -
                                        w/2% H2

                   (ISO)         Reducibility, dR/Dt40
                                 ---------------------
                                       %/Minute                   1.15                            1.05              -

Republic Engineered Products, LLC                             United States Steel Corporation

Name:                                                         Name:
       ----------------------------------------------                ----------------------------------------------

Title:    V.P., Integrated Supply Chain Management            Title:  Director, Raw Materials

Date:                                                         Date:
         --------------------------------------------                  --------------------------------------------

Specification valid through December 31, 2002
</TABLE>

<PAGE>

                                   SCHEDULE C
                                   ----------
                                      2002
                QUALITY SPECIFICATION FOR WABUSH 2.0% Mn Pellets
                          Cleveland-Cliffs Iron Company

<TABLE>
<CAPTION>
                                                                         Percentage (Dry Basis)
                                                                         -----------
                                                                           Typical
                                                                           -------
             CHEMISTRY
             ---------
                        <S>                                         <C>
                           Controlled Variables
                           --------------------
                                    SiO2 %                                  3.350
                                    B/A (Ratio)                             0.140

                           Consequent Variables %
                           ----------------------
                                    Fe                                      65.200
                                    CaO                                     0.400
                                    MgO                                     0.120

                                    Typical

                           Minor Elements %
                           ----------------
                                    A12O3                                   0.400
                                    K2O                                     0.030
                                    Na2O                                    0.025
                                    P                                       0.010
                                    S                                       0.010
                                    TiO2                                    0.030
                                    Mn                                      2.000

             PHYSICAL QUALITY
             ----------------

                           Size %                                            Mean
                           ------                                            ----
                                     +1/2 inch                               6.00
                                     -1/2", +3/8"                           83.00
                                     +1/4 inch                              99.00

                           Tumble Index (%)
                           ----------------
                                     +1/4 inch                              95.50
                                    -28 mesh                                 4.30

                           Compression Strength
                           --------------------
                                    Pounds                                   600
                                    % less than 200 pounds                  1.00

             (ISO)         Low Temp. Degradation
                                    Static %+1/4                              90
                                    w/2% H2

             (ISO)         Reducibility, dR/dT40
                                    %/Minute                                 0.70

             REP                                                         USS
             ---                                                         ---
             Name:                                                       Name:
             Title: Vice President                                       Title: Director, Raw Materials
             Date:                                                       Date:
</TABLE>

<PAGE>

                  Specification Valid Through December 31, 2002

<PAGE>

                                   SCHEDULE D
                                   ----------

                                      [***]

<PAGE>

                                   SCHEDULE E
<TABLE>
<CAPTION>
   --------------------------------------------------------------------------------------------------------
<S>                                         <C>

                                             REP Consignment/Bailment Program

                                                          Form 1

                                          Cleared Area for Reserve Pile Building

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

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

                                                    General Information

   Date: _____________________

   Pellet Type:      Flux              Acid             High Mn
   --------------------------------------------------------------------------------------------------------

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

                                                     Pile Information

   Pile Designation (Name and/or Coordinates):

   Pile Exhaustion Date:
   --------------------------------------------------------------------------------------------------------

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

                                                 Approval / Authorization

   REP Management Signature: ________________________________________________

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

<PAGE>

<TABLE>
<CAPTION>
                                   SCHEDULE F

-----------------------------------------------------------------------------------------------------------------------------
<S>                                                                         <C>

                                              REP Consignment/Bailment Program

                                                           Form 2

                                            Completion of Reserve Pile Building

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

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

                                                    General Information

Date: ______________________________

Pile Type:        Flux              Acid             High Mn

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

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

                                                      Pile Information

Pile Designation (Name and/or Coordinates): ____________________________

Pile Beginning Date: ___________________________

Pile Ending Date: _______________________________

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

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

                                               Vessel and Weight Information

Vessel Name                Date                     B/L #                    B/L Weight               Cumulative
                           Unloaded                                          (Net Tons)               B/L Weight

__________________         ___________________      ___________________      __________________       __________________

__________________         ___________________      ___________________      __________________       __________________

__________________         ___________________      ___________________      __________________       __________________

__________________         ___________________      ___________________      __________________       __________________

__________________         ___________________      ___________________      __________________       __________________

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

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

                                                  Approval / Authorization

REP Management Signature: ________________________________________

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

                                                                   Exhibit 10.24

CONFIDENTIAL TREATMENT REQUESTED
UNDER C.F.R. SECTIONS
200.80(b)(4), 200.83 and 230.406

**** INDICATES OMITTED MATERIAL THAT
IS THE SUBJECT OF A CONFIDENTIAL
TREATMENT REQUEST FILED
SEPARATELY WITH THE COMMISSION

                             ROUNDS SUPPLY AGREEMENT

                                  by and among

                        REPUBLIC ENGINEERED PRODUCTS, LLC

                                       and

                               LORAIN PIPE MILLS,

            an unincorporated unit of the Tubular Products Division,

                         United States Steel Corporation

                                       and

                         UNITED STATES STEEL CORPORATION

<PAGE>

                                TABLE OF CONTENTS

ARTICLE I - DEFINITIONS ...................................................    1
1.1    General ............................................................    1
1.2    Certain Defined Terms ..............................................    1

ARTICLE II - ROUND SALES ..................................................    2
2.1    Forecasts. .........................................................    2
2.2    Quantities. ........................................................    3
2.3    Prices .............................................................    4
2.4    Orders .............................................................    5
2.5    Payment ............................................................    6
2.6    Delivery, Title and Risk of Loss ...................................    6
2.7    Terms and Conditions of Sale .......................................    7
2.8    Warranty. ..........................................................    7
2.9    Most Favored Customer ..............................................    8
2.10   Cross Default; Right of Set-off ....................................    9
2.11   Mill Scale; Scrap                                                       9

ARTICLE III - TERM AND TERMINATION ........................................   11
3.1    Term ...............................................................   11
3.2    Termination ........................................................   12

ARTICLE IV - MISCELLANEOUS ................................................   12
4.1    Intent of Agreement. ...............................................   12
4.2    Payment Errors .....................................................   12
4.3    Dispute Resolution .................................................   13
4.4    Audit. .............................................................   13
4.5    Confidentiality. ...................................................   14
4.6    Severability. ......................................................   15
4.7    Rights and Remedies; No Consequential Damages ......................   15
4.8    Costs and Expenses .................................................   15
4.9    Notices. ...........................................................   15
4.10   Assignment. ........................................................   16
4.11   Counterparts .......................................................   17
4.12   Entire Agreement ...................................................   17
4.13   Headings. ..........................................................   17
4.14   Governing Law. .....................................................   17
4.15   No Third Party Rights ..............................................   17
4.16   Waiver and Amendments ..............................................   17
4.17   Force Majeure. .....................................................   18

SCHEDULE A: Prices
SCHEDULE A - ANNEX: Price Adjustments
SCHEDULE B: Seller's Standard Terms and Conditions of Sale
SCHEDULE C: Weight Calculation
SCHEDULE D: TQR-09-02-LC

<PAGE>

                             ROUNDS SUPPLY AGREEMENT

         THIS ROUNDS SUPPLY AGREEMENT made effective as of August 16, 2002 (the
"Effective Date"), by and among REPUBLIC ENGINEERED PRODUCTS, LLC, a _______
limited liability company (hereinafter referred to as "Seller" or "Republic"),
LORAIN PIPE MILLS, an unincorporated unit of the Tubular Products Division of
United States Steel Corporation ("Buyer" or "LPM") and United States Steel
Corporation, a Delaware corporation ("USS").

                              W I T N E S S E T H:

         WHEREAS, Buyer desires to obtain a reliable and continuing source of
rounds for its pipe/tubemaking facility in Lorain, Ohio (hereinafter referred to
as the "Pipemill"); and

         WHEREAS, Seller desires to supply to Buyer rounds produced by Seller at
its Lorain Works facility, in accordance with the terms and conditions set forth
herein; and

         WHEREAS, the parties hereto wish to enter into this Rounds Supply
Agreement (this "Agreement") setting forth, inter alia, the terms and conditions
relating to Seller's agreement to sell to Buyer, and Buyer's agreement to
purchase from Seller, Rounds (as defined herein), all upon and subject to the
terms and conditions as herein provided.

         NOW, THEREFORE, Seller, Buyer and USS hereby agree as follows:

                             ARTICLE I - DEFINITIONS

         1.1 General.

         Each capitalized term used herein shall have the meaning assigned to it
in this Agreement (including the Schedules hereof) or as set forth in this
Article I.

         1.2 Certain Defined Terms.

         As used herein, the following terms shall have the meanings set forth
below:

         "Coke Supply Agreement" means the Coke Supply Agreement effective of
even date herewith by and between Seller and USS.

         "Late Payment Rate" means [***].

         "Lorain Pipe Mills" or "LPM" means USS Tubular Products Division's
Pipemill facility in Lorain, Ohio, located adjacent to the Lorain Works.

<PAGE>

         "Lorain Works" means Seller's steelmaking facilities located in Lorain,
Ohio, which facilities produces, inter alia, Rounds.

         "LPM Mills" means the LPM No. 3 Seamless Mill that utilizes Rounds that
equals or exceeds 10 1/2 " (OD) and the LPM No. 4 Seamless Mill that utilizes 6"
(OD) Rounds.

         "Pellet Supply Agreement" means the Pellet Supply Agreement effective
of even date herewith by and between Seller and USS.

          "Person" means any individual, partnership, joint venture, firm,
corporation, limited liability company, association, trust or other entity or
government or political subdivision or any agency, department or instrumentality
thereof.

         "Rounds" means continuously cast carbon steel rounds, high strength
steel rounds and alloy steel rounds of the type produced by Seller at the Lorain
Works which are of the dimensions and chemistry set forth in Schedule D and meet
the specifications set forth in Buyer's orders (and/or USS's orders, as the case
may be) as acknowledged by Seller hereunder. Such term also includes steel
rounds of the above described type and specifications that Buyer purchases from
third party sources of supply.

         "RTI" shall mean Republic Technologies International, LLC. the prior
owner and operator of Lorain Works.

         "Seller's Standard Terms and Conditions of Sale" means the terms and
conditions set forth on Schedule B.

         "Services Agreement" means the Administrative and Utility Services
Agreement dated August 16, 2002 by and between Buyer and Seller.

         "Tons," "net ton" and "NT" each means 2,000 pounds avoirdupois in
weight.

         "Specification" means the TQR-09-02-LC specifications set forth in
Schedule D, as the same may be amended from time to time by mutual agreement of
the parties.

                            ARTICLE II - ROUNDS SALES

         2.1 Forecasts.

         During the term of this Agreement, Buyer will provide Seller with
written forecasts of the quantity of Rounds for which it anticipates placing
orders hereunder for the following periods at the stated intervals:

         (a) An annual forecast of the quantity of Rounds desired for each
calendar year not later than October 1 immediately prior to the commencement of
such year; provided, however,

                                       2

<PAGE>

that Buyer shall provide Seller with a supplement updating its annual forecast
if, at any time during the covered year, such forecast changes materially.

         (b) A quarterly forecast of the quantity, by LPM Mill, of Rounds
desired for each month of the succeeding calendar quarter not later than 30 days
prior to the commencement of such quarter.

         (c) It is understood that Buyer's forecasts provided in accordance with
this Section 2.1 are for the purpose of facilitating production, scheduling and
delivery of Rounds and are not binding upon Buyer.

         2.2 Quantities.

         (a) Subject to the terms hereof, Seller agrees to sell, and Buyer
agrees to buy Rounds for use at the Pipemill. During each calendar quarter that
this Agreement is in effect, Seller shall sell to Buyer and Buyer shall purchase
from Seller [***] of the first [***] Tons of Buyer's requirements for Rounds
(which requirements shall be determined on a consumption basis as provided in
Section 2.2 (c) below) for use at the Pipemill during such calendar quarter, at
the price(s) (according to melt line of Rounds purchased) set forth in Section
2.3 "Prices" hereof; provided, however, that Seller shall not be obligated to
supply greater than [***] Tons of Rounds to Buyer in any single month.

         (b) It is further agreed that during each calendar quarter that this
Agreement is in effect, Buyer shall have the right to purchase from third party
sources of supply (without obligation or liability to Seller) the following
quantities of Rounds for use at the Pipemill: (a) up to [***] of the first [***]
Tons of Buyer's requirements for Rounds, (b) all of Buyer's remaining
requirements for Rounds in excess of [***] Tons and (c) such quantity (or Tons)
of cover Rounds as are purchased by Buyer from third party sources pursuant to
Buyer's exercise of its cover rights under Section 2.8 "Warranty" of this
Agreement.

         (c) For purposes of this Agreement, the parties agree that Buyer's
obligation to purchase [***] of the first [***] Tons of it's requirements for
Rounds during each calendar quarter from Seller shall be determined on a
consumption basis by combining the following tonnages during each quarterly
period: (a) the total Tons of Rounds purchased from Seller by Buyer and consumed
at the Pipemill, plus (b) the total Tons of Rounds in Buyer's inventory as of
the effective date of this Agreement that were purchased from RTI and consumed
by Buyer in the given quarter, plus (c) total Tons (if any) of cover Rounds
purchased by Buyer from third party sources and consumed at the Pipemill,
pursuant to Buyer's exercise of its cover rights under Section 2.8 "Warranty" of
this Agreement. Thus, Buyer's purchase obligation to Seller during each calendar
quarter hereunder shall be deemed satisfied where the sum of (a), (b) and (c) is
equal to (at least) [***] of the first [***] Tons of Buyer's requirements for
Rounds for the calendar quarter involved.

         (d) Buyer may consume Rounds from a third party without violation of
its quarterly requirement obligations under Section 2.2(a) above during the term
of this Agreement in response to a reduction, loss or disruption of Rounds
supply from Seller, such as that caused by

                                       3

<PAGE>

or resulting from an event of Force Majeure or a temporary or permanent
disruption, or shutdown of Rounds production operations at the Lorain Works.

         (e) For purposes of verifying compliance with Buyer's purchase
obligations to Seller under this Section 2.2, Buyer shall provide to Seller a
written report covering consumption of Rounds for each calendar quarter during
the term hereof, setting forth the Tons of Rounds consumed at the Pipemill and
further identifying the quantity of such consumed Rounds and their source (i.e.
Seller or Third Party). For purposes of this Agreement, Rounds that were
purchased from RTI will be considered as Rounds supplied by Seller.

         (f) In addition to the foregoing, USS may also purchase Rounds from
Seller meeting the Specifications at the prices set forth in Schedule A for use
at USS's Fairfield, Alabama pipemaking facility.

         2.3 Prices.

         (a) For all orders of Rounds placed hereunder, Buyer shall pay Seller
purchase prices equal to the prices set forth on Schedule A of this Agreement.
The listed prices, as adjusted in accordance with Schedule A - Annex, shall be
in effect through [***], subject to the following:

              (i)    If, from the Effective Date through [***], Buyer purchases
                     Rounds in excess of an average of [***] Tons ([***] Tons
                     for the month of [***]) per calendar month (for each such
                     month, the "Monthly Excess"), the purchase price for such
                     Monthly Excess shall be reduced by the amount of $[***] per
                     Ton; and

              (ii)   If Buyer and USS together purchases Rounds in excess of
                     [***] Tons during the [***], Seller will rebate to Buyer
                     $[***] per net ton on all tons shipped in [***]. This
                     rebate will be paid once [***] tons of shipments have been
                     achieved. Buyer will offset payment to Seller, and if the
                     credit exceeds the available offset amount, the Seller will
                     make payment to Buyer by the [***].

         (b) If for three consecutive months during the term of this Agreement,
the price of molybdenum falls below $[***] per pound or increases above $[***]
per pound, as evidenced by the arithmetic average of the high and low monthly
prices for dealer oxide as published in the first issue of the following month
in Platts Metals Week, the parties agree to meet to discuss a suitable future
surcharge (in the case of a price increase), or future reduction (in the case of
a price decrease), to the price of the appropriate Melt Lines listed on Schedule
A. A price adjustment for molybdenum shall not be added to or subtracted from
the Rounds purchase price, but shall be treated as a separate line item as a
surcharge or reduction.

         (c) The weights used for purposes of determining the amount of Rounds
actually sold hereunder shall be calculated on the basis set forth in Schedule
C, and such weights shall be conclusive as to the quantities of Rounds sold
hereunder, and such weight calculation shall exclusively govern and be used for
billing and payment purposes; provided, however, that if

                                       4

<PAGE>

         Buyer should encounter material discrepancies between weights so
determined and weights measured by Buyer, Buyer and Seller shall meet to discuss
reasons for such discrepancies and whether remedial action is necessary.

         2.4. Orders.

         (a) The following procedures shall be used by the parties for ordering
Rounds:

              (i)    Rounds. (A) On or before the 10th day of each month during
                     the term hereof, Seller will furnish Buyer with Seller's
                     tentative schedule for producing Rounds for the next
                     succeeding month, based upon the forecasts provided by
                     Buyer pursuant to Section 2.1; (B) after receipt by Buyer
                     of Seller's schedule for producing Rounds, Buyer shall, on
                     or before the fifteenth day of each such month, submit to
                     Seller a forecast, by LPM Mill, of the number of Rounds
                     heats required to melt for Rounds to be delivered in the
                     next succeeding month, said number of Rounds heats as may
                     be adjusted shall become final and binding on both parties
                     as of the last business day of such month; (C) on or before
                     the seventh day prior to the scheduled date for the
                     production of Rounds as set forth in subparagraph (A)
                     above, Buyer will issue to Seller a written order, which
                     shall be conclusive, final and binding on both parties,
                     setting forth the number of heats of each grade
                     specification and number of rounds required by Rounds
                     Billet Number, for each Rounds size. All orders for Rounds
                     that are received after the seventh day prior to the
                     scheduled date for the production of Rounds or, if
                     accepted, would cause the amount of Rounds purchased
                     hereunder to exceed [***] Tons in any given month (X) shall
                     be subject to acceptance or rejection by Seller, (Y) can be
                     rejected by Seller for any reason or no reason, and (Z)
                     shall not be binding on Seller until accepted.

         (b) Within seven business days of Seller's receipt of any order from
Buyer, or prior to the scheduled date of production, whichever is earlier,
Seller shall e:mail Buyer the quantity and specification of Rounds which Seller
will deliver to Buyer and the anticipated delivery dates. Any proposed changes
by Seller from Buyer's order shall be negotiated by the parties before
acknowledgement. If Seller has the right to reject such order pursuant to
Section 2.4(a), Seller will acknowledge in writing that that Seller rejects such
order.

         (c) Seller will only be required to produce a requested size of ordered
Rounds twice per month per LPM Mill at a minimum of ten heat quantity for 6"
Rounds and twelve heat quantity for larger Rounds. Seller may deliver to Buyer
during any month a quantity of Rounds that exceeds Buyer's orders for such month
by up to the next whole heat (on a grade page/Round size combination), and Buyer
shall be obligated to accept such excess quantity as if, and to the same extent
as, such excess quantity had been ordered by Buyer.

         (d) Notwithstanding the foregoing, Seller shall use reasonable efforts
to minimize excess Rounds production. By way of example, if Buyer orders 7.6
heats of a grade

                                       5

<PAGE>

page/Rounds size combination, Buyer will be obligated to accept a quantity up to
8.0 heats on such grade page/Rounds size combination.

(e) Prices are based on minimum two-heat sequence per melt line per size. Seller
will agree to supply a maximum of [***] as single heats in any given calendar
quarter, not to exceed [***] in any single month (based upon single heats
ordered), at no additional charge. If the maximum levels stated above are
exceeded, the Buyer will be invoiced separately each calendar quarter an extra
for single heats of $[***] per ton for 6" Rounds and $[***] per ton for 10.5"
and larger Rounds. Buyer will pay the amount due under this subparagraph on the
next Payment Date as defined in Section 2.5 below.

         2.5 Payment.

         (a) For each railroad car of Rounds loaded for Buyer, Seller shall
create a computer file ("Manifest Sheet") containing the shipped date, manifest
number, roll order number, heat number and number of pieces. The Manifest Sheet
shall be transferred to Buyer's pipe computer system by electronic data
transfer. Buyer shall pay Seller via wire transfer, the net amount due per such
Manifest Sheet in accordance with the payment provisions set forth in Section
2.5(b) below.

         (b) Subject to Section 2.10 below, payment shall be made for each
Settlement Period (as hereinafter defined) on the Payment Date (as hereinafter
defined). A "Settlement Period" shall be the period falling from [***] (the
"First Settlement Period") and the period from [***] ("the "Second Settlement
Period"). On the day following each Settlement Period (the "Settlement Date")
(i.e. [***]), Buyer shall provide to Seller a summary of all payments to be made
on the Payment Date. The Payment Date for the First Settlement Period shall be
on the immediately succeeding [***] and the Payment date for the Second
Settlement Period shall be on the immediately succeeding [***]. In the event a
Payment Date falls on a holiday, The Payment Date shall be the day immediately
following. Any deliveries of Rounds which are not on a Manifest Sheet provided
by Seller prior to the otherwise applicable Settlement Period (e.g., due to
delays in the normal cycle) will be settled in the next Settlement Period.

         (c) For purposes of this Section 2.5, any and all references to Buyer
shall mean and include, as applicable, USS.

         2.6 Delivery, Title and Risk of Loss.

         (a) Delivery of Rounds to Buyer shall take place at the handoff between
the N&T Railroad and IRSS, unless otherwise agreed, or in such manner or at such
other place as shall be agreed upon by the parties in writing prior to the
shipment of Rounds. Title and risk of loss and damage to the Rounds shall pass
from Seller to Buyer when the Rounds are delivered in accordance with this
Section 2.6(a). Seller shall be responsible for truck detention and/or rail
demurrage charges incurred by Buyer which arise out of delays to carrier
equipment at Lorain Works receiving shipments of Rounds ordered hereunder which
have been scheduled by Seller, it being understood that Seller will ordinarily
schedule such shipments. Seller shall accept direct billing from carriers for
any such detention and/or demurrage.

                                       6

<PAGE>

         (b) Delivery of Rounds to USS shall take place F.O.B. railcar at the
mainline carrier interface, unless otherwise agreed, or in such manner or at
such other place as shall be agreed upon by the parties in writing prior to the
shipment of Rounds. Title and risk of loss and damage to the Rounds shall pass
from Seller to USS when the Rounds are delivered in accordance with this Section
2.6(b). Seller shall be responsible for truck detention and/or rail demurrage
charges incurred by USS which arise out of delays to carrier equipment at the
Lorain Works receiving shipments of Rounds ordered hereunder which have been
scheduled by Seller, it being understood that Seller will ordinarily schedule
such shipments. Seller shall accept direct billing from carriers for any such
detention and/or demurrage.

         2.7 Terms and Conditions of Sale.

         (a) Seller's Standard Terms and Conditions of Sale set forth in
Schedule B shall govern the purchase and sale of Rounds hereunder except to the
extent that a provision of this Agreement otherwise applies.

         (b) In the event of a conflict between the terms and conditions of this
Agreement and the terms or conditions contained in any notice, shipment,
specifications, purchase order, sales order, acknowledgment or other document
which may be used in connection with the transactions contemplated by this
Agreement, the terms and conditions of this Agreement shall supersede and
govern, unless expressly waived in accordance with Section 4.16. In the event of
a conflict between the terms and conditions of this Agreement and the terms or
conditions contained in any Schedule or Annex hereto, the terms and conditions
of this Agreement shall supersede and govern.

         2.8 Warranty.

         (a) Seller warrants that the Rounds supplied hereunder shall be (i) in
full conformity with the Specifications and with Buyer's orders, (ii) free from
defects in material and workmanship, (iii) of good quality, and (iv) fit and
sufficient for use at Buyer's Pipemill (or USS's Fairfield Works, as applicable)
for the production of seamless pipe.

         (b) Seller agrees that it will maintain adequate internal quality
management system controls, including but not limited to documented procedures,
process monitoring, testing and inspection to guarantee that Buyer receives
Rounds meeting the warranty set forth in Paragraph (a) above. Seller shall
submit to Buyer, within twenty four (24) hours of each occurrence, a written
report documenting such occurrence of nonconformance with Seller's process. Such
report shall also include Seller's action plan to prevent nonconforming Rounds
that may result from such nonconformance from being shipped to Buyer. Buyer's
representative shall be permitted unrestricted access to Lorain Works at all
times during the production of Rounds to conduct an audit and to monitor
operations and Buyer's representative shall also be permitted access to Lorain
Works to review Seller's quality records relating to the production of Rounds.

         (c) When Rounds are supplied by Seller that are not in conformance with
the warranty set forth in Section 2.8.(a) above and such non-conformance is
determined by Buyer to

                                       7

<PAGE>

be caused by steelmaking, casting, cutting or the maintenance of traceability,
including but not limited to failure to meet the Specifications, gross or
excessive seams, laps, cracks, porosity, flux entrapment, inclusions, and
non-metalics exceeding commercially acceptable levels for the melt line, mixed
steel, or any other quality problem that may cause damage to Buyer's equipment
or present a risk of harm to Buyer's personnel during processing, Buyer shall
provide a written disqualification notice to Seller notifying Seller of Buyer's
intent to disqualify the affected product line from Buyer's requirements
obligations hereunder. Seller shall have five (5) days to investigate the
identified warranty problem and to cure the problem or to provide Buyer
assurances that the problem will be remedied and which remedy is sufficiently
satisfactory to Buyer to cause Buyer to cancel disqualification notice, which
cancellation shall not be unreasonably withheld. In the event Seller fails to
correct the problem or provide Buyer such assurances during the cure period,
this Agreement shall continue with the Buyer's requirements to purchase Rounds
modified as set forth below until such time as Seller shall again meet the
quality and service criteria set forth herein.

              (i)    Buyer may purchase Rounds in the disqualified product line
                     from any third party supplier and the quantity of Rounds
                     Buyer is required to purchase from Seller under Section 2.2
                     above shall be reduced by the quantity of Rounds Buyer
                     purchases and consumes from such third party.

         (d) In the event that Seller supplies Rounds to Buyer that do not
conform to the specifications as identified in Buyer's orders or the
Specifications hereunder, Buyer shall notify Seller of such non-conformity.
Seller will reimburse Buyer for all of Buyer's costs and expenses associated
with identifying, sorting and testing non-conforming Rounds and suspected
non-conforming Rounds including third party inspection and testing costs and
expenses (including all transportation costs associated with transportation to
and from customer's or third party inspector's facilities), subject to prior
Buyer notification and approval.

         (e) For purposes of this Section 2.8, any and all references to Buyer
shall mean and include, as applicable, USS.

         2.9 Most Favored Customer.

         If, during the term of this Agreement, Seller sells and/or agrees to
sell Rounds produced at the Lorain Works of similar specifications in similar
quantities to any third party, under substantially similar circumstances and
conditions, at prices and/or upon terms and/or conditions which are more
favorable than those effective pursuant to this Agreement (a "More Favorable
Sale"), then Seller shall immediately notify Buyer, and offer to extend to Buyer
under this Agreement such more favorable prices, terms and/or conditions (up to
the quantity of Rounds sold in the More Favorable Sale). Notwithstanding the
foregoing, in the event Buyer does not purchase [***] tons in the calendar
quarter, Seller may sell such quantity of Rounds it produces during such
calendar quarter in reliance on such quarterly forecast to third parties up to
the amount equal to the difference between such forecast quantity and the
quantity actually purchased in such calendar quarter by Buyer and/or USS, and
such sale will not be deemed a more favorable sale under the provisions of this
Section 2.9; provided, that such sale is a new

                                       8

<PAGE>

order from an existing party or a third party obtained by Buyer for the purpose
of selling the difference in the forecast and purchased quantities set forth in
the previous sentence.

         2.10 Cross Default; Right of Set-off.

         (a) The parties hereby agree that Buyer's obligations to make payments
to Seller hereunder for Rounds during each Settlement Period are expressly
conditioned upon and subject to the prior satisfaction in full by Seller of any
and all of its payment obligations to USS under the Coke Supply Agreement, the
Pellet Supply Agreement and the Services Agreement.

         (b) Only in the event of a payment default by Republic, which is
defined as any failure by Republic at any time to make a payment when due under
Section 2.5 of the Pellet Supply Agreement, Section 2.6 of the Coke Supply
Agreement and/or Section 3.2 of the Services Agreement (for any reason other
than exercising its rights upon a payment default by LPM), LPM and/or USS may
(a) defer payment of any amounts due for Rounds hereunder until such time as any
and all delinquent amounts due and owing USS under the Services Agreement,
Pellet Supply Agreement and/or the Coke Supply Agreement (the "Delinquent
Amount") are paid, and/or (b) deliver to Republic a "Notice of Intent to Effect
Set-off." Provided that Republic has not remitted to USS the Delinquent Amount
within 5 days of Republic's receipt of the Notice of Intent to Effect Set-off,
LPM and/or USS may, on the 5th day following the delivery of such Notice,
set-off the Delinquent Amount against the amounts owed by LPM and/or USS to
Republic hereunder for Rounds as of the date of such Notice. Interest on the
Delinquent Amount shall accrue at the Late Payment Rate specified in this
Agreement.

         (c) Notwithstanding any provision herein to the contrary, in the event
that (i) LPM ceases operation at the Pipemill either on a temporary or permanent
basis or (ii) USS enters into an agreement to sell or otherwise transfer
ownership of the Pipemill assets or operations to a third party, then LPM and/or
USS shall have the express, immediate and continuing right to set-off any and
all amounts owed by LPM and/or USS to Republic hereunder against any and all
amounts owed by Republic to USS under the Coke Supply Agreement, the Pellet
Supply Agreement and/or the Services Agreement. In addition to the set-off right
contained in the immediately preceding sentence, Buyer and USS may also
substitute new or revised payment terms and conditions for the payment terms
which are then in effect hereunder.

         (d) Republic hereby agrees to continue to perform fully its obligations
hereunder and under the Coke Supply Agreement, the Pellet Supply Agreement and
the Services Agreement notwithstanding the exercise by USS of any of its rights
hereunder.

         2.11 Mill Scale; Scrap.

         (a) Mill Scale. LPM will deal directly with Stein or other third party
for the handling of mill scale. Republic will have no right, title, interest,
ownership, obligation or liability in, to or in connection with such mill scale
generated by LPM.

         (b) Vehicle Scrap. LPM will not send vehicle scrap to Republic.

                                       9

<PAGE>

         (c) Miscellaneous Scrap. With regard to other steel scrap (e.g., crop
ends, test coupons, burned-to-length scrap and the like) ("Miscellaneous Scrap")
generated by Buyer, the following procedures shall apply:

              (i)    Where rail access is readily available, LPM will load the
                     Miscellaneous Scrap onto rail cars used to deliver the
                     Rounds to LPM hereunder, at which time ownership of such
                     Scrap shall pass to Republic, and LPM shall have no further
                     claim, right, title, interest, obligation or liability in,
                     to or in connection with such Scrap. Republic shall pay LPM
                     for the Miscellaneous Scrap [***] received from the Lake
                     Terminal scale. All costs associated with the
                     transportation and weighing of such Scrap shall be borne by
                     Republic;

              (ii)   Where rail access is not readily available, LPM will load
                     the Miscellaneous Scrap into scrap boxes ("Boxes") provided
                     and maintained by LPM. When a Box is full, LPM will arrange
                     for delivery of such Box to Republic, with the costs of
                     such delivery to be borne by LPM. Republic shall pay to LPM
                     the amount set forth below for the Miscellaneous Scrap
                     [***], as measured on the truck scales located at the
                     Stein, Inc. Lorain, Ohio facility, with the costs of such
                     weighing to be borne by LPM. Ownership of the Miscellaneous
                     Scrap shall pass to Republic upon delivery of such Scrap to
                     Republic, and LPM shall have no further claim, right,
                     title, interest, obligation or liability in, to or in
                     connection with such Scrap.

              (iii)  For Miscellaneous Scrap Republic will pay to LPM an amount
                     equal to the arithmetic average of the low and high scrap
                     prices for the Chicago, Cleveland and Pittsburgh areas for
                     plate and structural 5' maximum, as published by American
                     Metal Market on the fifth working day of the month such
                     scrap is delivered, less $[***] per Gross ton for handling.

              (iii)  LPM agrees to prepare the Miscellaneous Scrap to lengths of
                     approximately 5 feet or less, and will segregate carbon
                     versus alloy wherever possible.

         (d) LPM will provide to Republic a monthly Metals Balance setting forth
quantity of scrap sold to Republic under this Sections 2.11(b) and (c). All
amounts payable to LPM by Republic under this Section 2.11 shall be paid as a
credit taken by LPM on a monthly basis against amounts due to Republic under
Section 2.5 .

         (e) Terms of Sale. All Miscellaneous Scrap sold to Republic hereunder
shall be delivered pursuant to the terms and conditions contained in LPM's order
acknowledgement and IS SOLD AS IS, WITHOUT ANY WARRANTIES OR GUARANTEES
WHATSOEVER. LPM makes no, and hereby disclaims any and all, representations,
warranties or guaranties, whether express or implied, including without
limitation, warranties as to the condition,

                                       10

<PAGE>

composition or other physical characteristics of such materials and any implied
warranties of merchantability or fitness for a particular purpose. All such
material is being transported for recycling purposes as defined in applicable
tariffs and other laws, rules and regulations.

                       ARTICLE III - TERM AND TERMINATION

         3.1 Term.

         This Agreement shall be effective as of the date set forth in the
preamble hereto and shall remain in full force and effect through December 31,
2004, unless terminated earlier as follows:

              (i)    By written mutual consent of the parties at any time;

              (ii)   By either party if Seller permanently ceases production of
                     Rounds or Buyer ceases to operate the Pipemill; provided,
                     that Buyer or Seller, as the case may be, will give the
                     other immediate notice if it intends to cease, or
                     anticipates cessation of, such production or operations;

              (iii)  By either party if the other party is in default under any
                     of the provisions of this Agreement and fails to correct
                     such default within 60 days of written notice of such
                     default;

              (iv)   By Seller if Buyer at any time fails to make any payment
                     when due under the terms of this Agreement; or

              (v)    by Buyer, upon 30 days' prior written notice, if Seller
                     terminates the Coke Supply Agreement, the Pellet Supply
                     Agreement or the Services Agreement for any reason other
                     than default of USS thereunder.

In addition to the rights of Buyer to terminate this Agreement pursuant to
subsection (v) above, USS shall have the right, upon the occurrence of any of
the events set forth therein, (X) to suspend production and/or refuse to make
further shipments or deliveries of coke (including without limitation Coke)
and/or Pellets or otherwise suspend its further performance under the Coke
Supply Agreement, the Pellet Supply Agreement and/or the Services Agreement or
(Y) to declare immediately due and payable all then outstanding and unpaid
invoices covering coke (including without limitation Coke) and/or Pellets
previously delivered under the Coke Supply Agreement and/or the Pellet Supply
Agreement.

In addition to its other remedies set forth elsewhere herein and as provided
under applicable law, upon notice to Republic, LPM and/or USS may withhold and
retain from time to time out of monies due Republic hereunder, amounts
sufficient to fully reimburse and compensate Buyer and/or USS for any loss or
damage which it sustains, or may sustain, as a result of any default or any
breach by Republic of any of the provisions of the Coke Supply Agreement, the
Pellet Supply Agreement and/or the Service Agreement, or by reason of any other
claims LPM and/or USS may have against Republic under any other agreement
between them.

                                       11

<PAGE>

As used herein, "default" means failure of either party to perform, keep or
observe any material obligation, provision, warranty or condition contained
herein, unless such performance is otherwise excused by the terms of this
Agreement.

         3.2 Termination.

         (a) Seller and Buyer agree that upon and after termination of this
Agreement:

              (i)    All orders previously accepted by Seller hereunder, and
                     Buyer's obligation to pay for such orders, shall continue
                     in full force and effect.

              (ii)   Buyer shall remain obligated to make any payment that
                     became due and owed to Seller hereunder prior to
                     termination.

              (iii)  Liabilities and obligations of any party arising from any
                     act, omission, default or occurrence prior to termination
                     shall remain with such party.

              (iv)   The parties' rights and obligations under Sections 2.5,
                     2.8, 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.13, 4.16 and this
                     Article III shall survive the termination of this
                     Agreement.

                           ARTICLE IV - MISCELLANEOUS

         4.1 Intent of Agreement.

         The parties hereto intend that they shall mutually benefit from the
terms, conditions and provisions of this Agreement and that no party shall be
either unreasonably enriched or unreasonably harmed by any implementation and/or
interpretation of said terms, conditions and provisions. This Agreement shall be
administered and interpreted in order to fulfill the intent stated in this
Section 4.1. Any arbitrator(s) considering disputes pursuant to Section 4.3
hereof shall attempt to render a decision which fulfills the intent stated in
this Section 4.1.

         4.2 Payment Errors.

         (a) If either Buyer or Seller believes that there has been an error in
an amount paid or the timing of any payment hereunder, then such party shall
notify the other party of such alleged error and shall provide such written
evidence of the error as is available at the time of such notice. Each party
shall provide the other with sufficient records relating to the matter so as to
permit the parties to attempt to resolve the inconsistency.

         (b) Following the determination of whether an error occurred, any
overpayment or underpayment found shall be remedied, by the party that benefited
from such error.

                                       12

<PAGE>

         (c) Notwithstanding the foregoing, neither party may question the
accuracy, correctness, timing or amount of any payment under this Agreement
unless it notifies the other party of its disagreement within the 12 months
immediately following the date such payment was due.

         4.3 Dispute Resolution.

         At any time and from time to time, if the parties are unable to resolve
a dispute concerning Buyer's or Seller's performance or nonperformance of their
obligations under this Agreement (excepting any disputes excluded herefrom),
Buyer or Seller, as the case may be, shall provide written notice to the other
of such dispute as provided in Section 4.9 hereof. It is mutually agreed that
any default by LPM or USS in its payment obligations hereunder (or any dispute
relating thereto), and/or any dispute relating to LPM's or USS's exercise of its
rights under Section 2.10 hereof shall not be subject to (and are excluded from)
the provisions of this Section 4.3; it being agreed that any such excluded
disputes (as aforesaid) shall be pursued and adjudicated by the parties in a
court of competent jurisdiction. Any other dispute shall be resolved by using
the procedures for Mediation and Arbitration set forth below:

         (a) Mediation. At any time after a party has provided a written notice
of dispute to the other party, but prior to the time that either party commences
arbitration pursuant to Article 4.3(b) herein, the parties may agree to submit
the dispute to non-binding mediation under terms and conditions satisfactory to
both parties.

         (b) Arbitration. At any time after a party has provided a written
notice of dispute to the other party, including at any time during any
non-binding mediation agreed to by the parties, either party may submit the
matter in dispute to a pre-designated arbitrator or, in the event such
arbitrator has not been selected or is unavailable, to a three member arbitral
panel to which each Party shall appoint one member and those two members shall
appoint a third member. Such arbitration shall be governed by the CPR Rules for
Non-Administered Arbitration of Business Disputes. Pending the issuance of an
arbitral decision, the Parties shall continue their full and normal operations
and obligations in accordance with this Agreement. All arbitral awards for the
payment of money and/or for any retroactive adjustment of any interim prices
paid hereunder shall accrue interest at the Late Payment Rate starting from the
date on which any amount is due or the date on which the interim payment was
due.

         (c) Consent to Enforceability. Each of the Parties consents and agrees
that any arbitral award rendered pursuant to Subsection 4.3(b) shall be final,
non-appealable and binding against the Parties and their respective assets, and
may be enforced by any court of competent jurisdiction.

         4.4 Audit

         (a) Each party shall maintain such books and records as may be
reasonably necessary to verify amounts due under this Agreement and Buyer shall
maintain records to verify compliance with its requirement obligations under
Section 2.2 above. Such books and records shall be open to audit by the other
party's third party accounting firm during reasonable

                                       13

<PAGE>

business hours during the life of this Agreement and for a period of one (1)
years thereafter. The costs associated with such audit shall be paid by the
requesting party and the audit firm shall sign a confidentiality agreement
satisfactory to the party being audited.

         4.5 Confidentiality.

         (a) Buyer and Seller acknowledge that all information about the
businesses, properties, finances, prospects, marketing, processes, products,
methods, computer programs, procedures, machinery, apparatus or trade secrets
owned, or held or used (including under license from or agreement with third
parties) by the other that is disclosed to Buyer or Seller, as the case may be,
during the course of performing its obligations under this Agreement is the
property of, and is proprietary and confidential to the disclosing party (the
"Proprietary Information").

         (b) Buyer and Seller agree that they shall use reasonable efforts not
to make any disclosure of the other's Proprietary Information (including methods
or concepts utilized therein other than those commonly known to professionals in
the field) to any Person other than officers, employees and agents of and
consultants to Buyer or Seller to whom such disclosure is necessary or
convenient for performance of its obligations hereunder and except as may be
required by applicable legal requirements or by a court of competent
jurisdiction. Buyer and Seller shall appropriately notify each officer,
employee, agent and consultant to whom any such disclosure of the other's
Proprietary Information is made that such disclosure is made in confidence and
shall be kept in confidence by such Person.

         (c) Each of Buyer and Seller agrees to use diligent efforts in
accordance with customary and reasonable commercial practice and at least with
the same degree of skill and care that it would manifest in protection of its
own proprietary and confidential property to protect the other's Proprietary
Information.

         (d) Each of Buyer and Seller agrees to notify the other immediately in
the event that it becomes aware of the unauthorized possession or use of the
other's Proprietary Information (or any part thereof) by any third Person,
including any of its officers, employees, agents or consultants. Each of Buyer
and Seller further agrees to cooperate with the other in connection with its
efforts to terminate or prevent such unauthorized possession or use of such
Proprietary Information. Seller or Buyer, as the case may be, shall pay the
nonproprietary party's reasonable out-of-pocket expenses in so cooperating,
unless the unauthorized possession or use of the Proprietary Information
resulted from the fault or negligence of such nonproprietary party.

         (e) Notwithstanding any other provision of this Agreement, the
obligation of Buyer and Seller to maintain the confidentiality of the other's
Proprietary Information shall not apply to any portion of such Proprietary
Information that:

              (i)    was in the public domain at the time of Buyer's or Seller's
                     disclosure to the other;

              (ii)   enters the public domain through no fault of the
                     nonproprietary party;

                                       14

<PAGE>

              (iii)  was communicated to the nonproprietary party by a third
                     party free of any obligation of confidence known to the
                     nonproprietary party; or

              (iv)   was developed by officers, employees or agents of or
                     consultants to the nonproprietary party independently of
                     and without reference to the Proprietary Information;

provided, however, that Proprietary Information which is specific shall not be
considered to be within the exception provided by this Section 4.5(e) merely
because it is embraced by general information in the public domain; provided
further, that any combination of features within the Proprietary Information
shall not be deemed within such exception merely because individual features are
within the public domain, but only if the combination itself is within the
public domain.

         4.6 Severability.

         In case any one or more of the provisions contained in this Agreement
is adjudged to 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, except to the
extent necessary to avoid an unjust or inequitable result.

         4.7 Rights and Remedies; No Consequential Damages.

         The rights and remedies granted under this Agreement shall not be
exclusive but shall be in addition to all other rights and remedies available at
law or in equity, including, but not limited to, claims for breach of contract,
except that Buyer and Seller agree that in no event shall either party be liable
to the other for any indirect, special or consequential damages or lost profits
as a result of a breach of any provision of this Agreement.

         4.8 Costs and Expenses.

         Each of Buyer and Seller shall bear its own expenses incurred in
connection with the negotiation, preparation and execution of this Agreement.

         4.9 Notices.

         All notices or other communications required or permitted by this
Agreement shall be effective upon receipt and shall be in writing and (i)
personally delivered, or (ii) mailed by registered or certified mail, return
receipt requested, or (iii) sent by overnight delivery service which provides
proof of delivery, or (iv) sent by telecopy, with a duplicated copy sent via
first class mail postage prepaid, addressed as follows:

                                       15

<PAGE>

                  If to Buyer:

                           Lorain PIPE MILLS
                           1807 East 28th Street
                           Lorain, Ohio  44055

                           Attn:  Manager, Lorain Tubular Operations
                           Facsimile:  (440) 277 - 3265

                  If to Seller:

                           REPUBLIC ENGINEERED PRODUCTS, LLC
                           3770 Embassy Parkway
                           Akron, Ohio  44333
                           Attention:  President & COO
                           Facsimile:  (330) 670 - 7034

                  If to USS:

                           UNITED STATES STEEL CORPORATION
                           Room 2001
                           600 Grant Street
                           Pittsburgh, PA  15219
                           Attention:  General Manager Tubular Products
                           Facsimile:  (412)433-3993

  or to such other address as hereafter shall be furnished as provided in this
  Section 4.9 by either of the parties hereto to the other.

         4.10 Assignment.

         (a) Except as provided in Section 4.10(c), neither party can without
the prior written consent of the other assign any of its rights or benefits or
delegate any of its duties or obligations under this Agreement, and any
attempted assignment or delegation which is not permitted under Section 4.10(c)
shall be null, void and without effect; provided, however, that Buyer may grant
a security interest in Buyer's rights, benefits, duties and obligations under
this Agreement without the consent of Seller. Buyer shall provided Seller
written notice of the granting or revision of any such security interest.

         (b) The rights, benefits, duties and obligations of each party hereto
shall inure to the benefit of, and be binding upon, any successors, assigns or
delegates permitted under Section 4.10(c).

         (c) Either party hereto may delegate any of its duties or obligations
under this Agreement to any Person, but except as otherwise provided in this
Agreement such party shall remain liable for the full performance of such duties
and obligations. Either party hereto may assign or delegate any of its rights,
benefits, duties or obligations hereunder (i) to any Person if it

                                       16

<PAGE>

has received the prior written consent of the other party, which consent shall
not be unreasonably withheld or delayed, (ii) to its legal successor if it
merges (whether or not it is the surviving corporation) or consolidates with one
or more other Persons or (iii) to any Person to whom either party has made any
sale, lease, transfer or other disposition of all or substantially all of its
assets; provided, however, that neither party may make an assignment or
delegation described in clauses (ii) and (iii) above unless there are delivered
to the other party such written assumptions, affirmations and/or legal opinions
as such other party may reasonably request to preserve its rights and remedies
under this Agreement.

         4.11 Counterparts.

         This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute a
single instrument.

         4.12 Entire Agreement.

         This Agreement (including the Schedules hereto) sets forth the entire
understanding and agreement between the parties as to the matters covered herein
and supersedes and replaces any prior understanding, agreement or statement of
intent, in each case written or oral.

         4.13 Headings.

         The headings contained in this Agreement are for convenience of
reference only and do not modify or affect in any way the meaning or
interpretation of this Agreement.

         4.14 Governing Law.

         This Agreement shall be construed and enforced in accordance with, and
governed by, the laws of the State of Ohio, excluding its conflict of laws
provisions.

         4.15 No Third Party Rights.

         This Agreement is intended to be solely for the benefit of the parties
hereto and is not intended to confer any benefits upon, or create any rights in
favor of, any Person other than the parties hereto, except as expressly provided
to the contrary elsewhere in this Agreement.

         4.16 Waiver and Amendments.

         No waiver shall be deemed to have been made by either party of any of
its rights under this Agreement unless the same shall be in a writing that
expressly refers to this Section 4.16 and is signed on its behalf by its
authorized officer. Any such waiver shall constitute a waiver only with respect
to the specific matter described in such writing and shall in no way impair the
rights of the party granting such waiver in any other respect or at any other
time. This Agreement shall not be amended or modified except by an instrument in
writing signed by the party against whom enforcement is sought.

                                       17

<PAGE>

         4.17 Force Majeure.

         (a) Except for obligations to make payments hereunder, neither party
hereto shall be liable for any failure to perform the terms of the Agreement
when such failure is due to Force Majeure. "Force Majeure" means acts of God,
strikes, lockouts, or other labor disputes or disturbances, civil disturbances,
arrests and restraint from rulers or people, interruptions or terminations by or
as a result of government or court action or orders, or present and future valid
orders of any regulatory body having jurisdiction, acts of the public enemy,
wars, riots, blockades, insurrections, inability to secure or delay in securing
labor or materials by reason of allocations promulgated by authorized
governmental agencies, epidemics, landslides, lightning, earthquakes, fire,
storm, floods, washouts, explosions, breakdowns or accidents, inability to
obtain transportation services, or any other cause, whether of the kind herein
enumerated or otherwise, not reasonably within the control of the party claiming
Force Majeure. The Force Majeure shall, so far as possible, be remedied with all
reasonable dispatch. The settlement of strikes or lockouts or other labor
disputes or disturbances shall be entirely within the discretion of the party
having the difficulty, and the above requirement that any Force Majeure shall be
remedied with all reasonable dispatch shall not require the settlement of
strikes, lockouts, or labor disputes or disturbances by acceding to the demands
of any opposing party therein when such course is inadvisable in the discretion
of the party having the difficulty.

         (b) The party whose performance is affected or who has reason to
believe such performance may be affected by reason of Force Majeure shall as
promptly as possible give notice thereof to the other party and shall confirm
such notice in writing if requested, giving the particulars of the event,
including supporting documentation if available. The party so affected shall
also take reasonable steps to resume performance hereunder with the least
possible delay.

         IN WITNESS WHEREOF, this Agreement has been executed and delivered as
of the date first written above.

REPUBLIC ENGINEERED                       LORAIN PIPE MILLS
PRODUCTS, LLC

By:/s/ J.T. Kuntz                         By:/s/ Gary F. Gajdzik
   --------------                            -------------------
Name: J.T. Kuntz                          Name: Gary F. Gajdzik
Title: V.P., Integrated Supply            Title: General Manger Tubular Products
       Chain Management

                                          UNITED STATES STEEL
                                          CORPORATION

                                          By:/s/ Gary F. Gajdzik

                                             -------------------
                                          Name: Gary F. Gajdzik
                                          Title: General Manger Tubular Products

                                       18

<PAGE>

                                   SCHEDULE A
                                       TO
                             ROUNDS SUPPLY AGREEMENT

                                 Rounds Pricing

                                      [***]

<PAGE>

                               SCHEDULE A - ANNEX
                               ------------------

                       PRICE ADJUSTMENT FORMULA FOR ROUNDS

                                      [***]

<PAGE>

                                   SCHEDULE B
                                       TO
                             ROUNDS SUPPLY AGREEMENT
                             -----------------------

                 Seller's Standard Terms and Conditions of Sale
                 ----------------------------------------------

1.     PAYMENTS: Payments shall be made at par in legal tender of the United
       States of America. Buyer shall make such arrangements for payment as
       Seller shall from time to time reasonably require, and Seller may suspend
       production, shipment or delivery until such arrangements are made. Unless
       authorized, if Buyer fails to make payment in full within the time period
       set forth on in the Agreement or within the time period expressly agreed
       upon in writing by the parties, such failure to pay on time constitutes a
       material breach of contract by Buyer permitting Seller to suspend
       production, shipment or delivery under this or any other contract between
       Buyer and Seller, and Buyer shall pay to Seller interest on the unpaid
       amount at the Late Payment Rate, and Seller shall have, in addition, all
       other remedies permitted to Seller by law, equity and this contract. If
       Seller has to take legal action to collect any amount due hereunder,
       Buyer shall pay court costs plus reasonable attorney's fees incurred by
       Seller in bringing such legal action.

2.     TAXES: To the extent legally permissible, all present and future taxes
       imposed by any Federal, state, foreign or local authority which Seller
       may be required to pay or collect, upon or with reference to the sale,
       purchase, transportation, delivery, storage, use or consumption of goods
       or services, including taxes upon or measured by the receipts therefrom
       (except net income and equity franchise taxes), shall be for account of
       Buyer.

3.     TITLE; INCIDENTAL TRANSPORTATION AND STORAGE CHARGES: Unless otherwise
       agreed, title to goods and risk of loss shall pass to Buyer upon tender
       of delivery at the F.O.B. point specified. Any charges at destination for
       spotting, switching, handling, storage and other accessorial services,
       and demurrage, shall be for Buyer's account. Seller shall have the right
       to assess a storage and handling charge for goods left in Seller's
       possession after notification to Buyer that the goods are available to
       ship.

4.     TIME OF SHIPMENT AND SHIPPING: Time is not of the essence hereunder. Each
       shipment is to be considered a separate sale. Seller reserves the right
       to ship all or any part of the goods from any shipping point of Seller
       other than the shipping point or points specified herein.

5.     SPECIFICATION VARIATIONS: Except in the particulars specified by Buyer
       and expressly agreed to in writing signed by Seller, the goods furnished
       hereunder shall be produced in accordance with the Seller's standard
       practices. All goods, however, including those produced to meet an exact
       specification, shall be subject to Seller's mill tolerances and
       variations consistent with good mill practice in respect to dimension,
       weight, straightness, section, composition and mechanical or physical
       properties, and to normal variations in surface and internal conditions
       and in quality and to deviations from tolerances and variations
       consistent with practical testing and inspection methods and to

<PAGE>

       regular mill practice on over and under shipments (as set forth in
       Section 2.4(c) of the Rounds Supply Agreement.

6.     INSPECTION: Where mill inspection is made by Buyer, Buyer's inspector
       shall be deemed the agent of Buyer with authority to waive specified
       tests and details of test procedure and to accept goods as conforming to
       this contract with respect to all characteristics of such goods for which
       such inspection is made.

7.     FORCE MAJEURE: Shall have the meaning as set forth in Section 4.17 of the
       Rounds Supply Agreement.

8.     PATENT INDEMNITY: Seller shall indemnify Buyer (a) for all direct and
       actual damages recovered from Buyer by a third party in a legal action
       for infringement of a U.S. patent claim covering goods furnished
       hereunder, on condition that Buyer promptly notifies Seller of the
       alleged infringement, affords Seller the opportunity to assume defense
       thereof, and cooperates with Seller in defense of the action and in any
       feasible mitigation of damages; and (b) for Buyer's directly and
       reasonably incurred expenses in defending such legal action if, after
       such notice and opportunity given by Buyer, Seller elects not to assume
       such defense; provided, that such election by Seller shall not otherwise
       affect Buyer's aforesaid obligations. In like manner, Buyer shall
       indemnify Seller, and Seller's indemnity of Buyer hereunder shall not
       apply, with respect to a claim arising out of Seller's compliance with
       special designs or specifications furnished by Buyer, now or hereafter
       forming a part of this contract, or with other written instructions given
       by Buyer for the purpose of directing the manner in which Seller shall
       perform this contract. In no event shall a party hereto have any
       liability hereunder for indirect or consequential losses or damages
       suffered, or other expenses incurred, by the other party hereto or any
       third party by reason of any patent infringement claim.

9.     WARRANTY DISCLAIMERS: SELLER WARRANTS THAT THE GOODS FURNISHED HEREUNDER
       WILL BE PRODUCED AND TESTED IN ACCORDANCE WITH THIS AGREEMENT AND THE
       SPECIFICATIONS SET FORTH IN BUYER'S ORDER. HOWEVER, NO WARRANTY OF
       FITNESS FOR ANY PARTICULAR PURPOSE NOR ANY OTHER REPRESENTATION OR
       WARRANTY, WHETHER EXPRESS OR IMPLIED, IS MADE RESPECTING SAID GOODS, OR
       THE PRODUCTION THEREOF AND THERE ARE NO WARRANTIES WHICH EXTEND BEYOND
       THIS AGREEMENT AND THE DESCRIPTION IN BUYER'S ORDER.

10.    LIMITATION OF REMEDIES: Seller will replace, at the delivery point
       specified herein, any goods furnished hereunder that are found to be
       defective or otherwise fail to conform to any warranty or this contract,
       or, at Seller's option. Seller will promptly repay the price paid for
       such goods, plus any transportation charges and other incidental expenses
       paid or incurred by Buyer as a result of Seller's breach in addition to
       such price. Claims must be made promptly following delivery of the goods
       to Buyer and Seller must be given a reasonable opportunity to investigate
       and cure any nonconformity; provided, that Seller's right to cure shall
       not extend beyond 5 days after Buyer's notice of such

<PAGE>

       defect or nonconformity. Except as expressly set forth otherwise in the
       Round Supply Agreement, Buyer's exclusive remedies with respect to any
       goods furnished by Seller hereunder that are found to be defective or
       otherwise not in conformity with any warranty or this contract shall be
       limited exclusively to the right to replacement thereof or to repayment
       of the price, as above provided. Seller's liability for any other breach
       of this contract shall be limited to the difference between the delivered
       price of the goods covered hereby and the market price of such goods at
       Buyer's destination at the time of such breach. IN NO EVENT SHALL SELLER
       BE LIABLE FOR PERSONAL INJURY, PROPERTY DAMAGE, LOSS OF PROFIT, DELAY OR
       ANY CONSEQUENTIAL DAMAGES WHETHER ARISING FROM CONTRACT, BREACH OF
       CONTRACT, TORT, SELLER'S NEGLIGENCE, STRICT LIABILITY, OR ANY EXPRESS OR
       IMPLIED WARRANTY, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES
       OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

11.    EXCLUSIVE TERMS AND CONDITIONS; ACCEPTANCE; MODIFICATION: No terms or
       conditions other than those stated herein and no agreement or
       understanding, oral or written, in any way purporting to modify these
       terms and conditions shall be binding on Seller unless hereafter made in
       writing, specifically stating that it is a modification of these terms
       and conditions, and signed by Seller's authorization representative. If
       these conditions and this form constitute Seller's acceptance of Buyer's
       order, then this acceptance is expressly made conditional on Buyer's
       assent to these conditions as the only conditions for this sale.
       Acceptance of the products sold hereunder by Buyer shall constitute
       assent to these conditions, and Seller hereby objects to and rejects any
       and all additional or different terms proposed by Buyer, whether
       contained in Buyer's purchase order or shipping release forms, or
       elsewhere. All proposals, negotiations and representations, if any, made
       prior and with reference hereto are merged herein.

12.    CONDITIONS INCORPORATED BY REFERENCE: Any clause required to be included
       in a contract of this type by any applicable law or administrative
       regulation having the effect of law shall be deemed to be incorporated
       herein.

13.    WAIVER: Waiver by Seller or Buyer of any breach of these provisions shall
       not be construed as a waiver of any other breach.

14.    ASSIGNMENT: Neither party may assign its rights or obligations hereunder
       without the prior written consent of the other party.

15.    TITLES: The titles used in these Conditions are for convenience or
       reference only and are not to be considered in interpreting the substance
       of the condition.

<PAGE>

                                   SCHEDULE C
                                       TO
                             ROUNDS SUPPLY AGREEMENT
                             -----------------------

                                     Weights
                                     -------

The following theoretical weights, in pounds per foot of length, is used to
calculate production and shipping weights for Rounds sold to Buyer's Pipemill or
to USS's Fairfield Works, as applicable. This shipping weight calculation is
used for billing and freight purposes.

<TABLE>
<CAPTION>
------------------------------------- ---------------------------------- -----------------------------------
           Size (inches)                            Type                        Weight (lbs./foot)
           -------------                            ----                        ------------------
             <S>                               <C>                                <C>
------------------------------------- ---------------------------------- -----------------------------------
                6.0                                 Cast                              93.9162
------------------------------------- ---------------------------------- -----------------------------------
                10.5                                Cast                              287.6185
------------------------------------- ---------------------------------- -----------------------------------
               11.625                               Cast                              352.5528
------------------------------------- ---------------------------------- -----------------------------------
               12.25                                Cast                              391.4807
------------------------------------- ---------------------------------- -----------------------------------
                13.5                                Cast                              475.4510
------------------------------------- ---------------------------------- -----------------------------------
</TABLE>

<PAGE>

                                   SCHEDULE D
                                       TO
                             ROUNDS SUPPLY AGREEMENT
                             -----------------------

                         The TQR-09-02-LC Specifications
                         -------------------------------

                        LPM TUBULAR QUALITY REQUIREMENTS

--------------------------------------------------------------------------------
                                                     Number:   TQR-09-02-LC
Title:  Inbound Rounds Quality                       Page:     1 of 6
           Requirements,                             Previous: 08-01-95
        Republic - Cast & Rolled Rounds              Revised:  03-10-00
--------------------------------------------------------------------------------

(1) SCOPE:

         Quality requirements for Cast & Rolled Rounds produced at the Republic
         Primary Operations-Lorain #1 and #2 Casters, for LPM, to include the
         following outside diameter sizes:

              6"                                    -- #4 Seamless Application

              10-1/2", 12 1/4", 12 3/4"&13 1/2"     -- #3 Seamless Application

(2) REQUIREMENTS:

         General

         2.1-Steel is ordered by specification number, which comprises the last
         three digits of the Round Billet Number and refers to the "LPM Steel
         Specification."

         2.2-Heat chemistries shall be within limits specified as "Ladle
         Acceptance Limits" on the Specification. Residual elements, not
         specified, shall be kept as low as possible, consistent with sound
         steelmaking practices.

         2.3-Heats with chemistries outside the "Ladle Acceptance Limits" and
         heats or rounds violating any other specification requirement may be
         rejected by Steelmaking or the Caster, or referred to Tubular Quality
         Assurance for disposition.

         Identification

         2.4-6" Rounds-Each round shall be legibly paint stenciled on one end
         with the heat number and round billet (RB) number specified on the
         requisition.

<PAGE>

         2.5-10-1/2", 12-1/4" ,12-3/4" & 13-1/2" Rounds-Each round shall be
         legibly DOUBLE paint stenciled on one end with the heat number and
         round billet (RB) number specified on the requisition.

         Dimensional Tolerances

         2.6-     WEIGHT/LENGTH -- Rounds shall be ordered by length
                  corresponding to the required weight. Uniform round length is
                  critical. 2.6.a- Orders in which short rounds cannot be
                  accepted, shall be identified by Business Planning on the
                  requisition.

         2.7-Final length tolerances are applicable for all rounds, regardless
         of where the rounds are cut.
                  2.7.a-For #3 Seamless, see Table I.
                  2.7.b-For #4 Seamless, see Table II.

--------------------------------------------------------------------------------
                                     TABLE I

NO. 3 SEAMLESS MILL
10.5" Rounds --  +1"/-1" MAXIMUM VARIANCE FROM ORDERED LENGTH.
12.25"/12.75"/13.5" Rounds less than 13.5 foot mult lengths - +1"/-1"
12.25"/12.75"/13.5" Rounds equal to or greater than13.5 foot mult lengths -
+2"/-1". NOTE -- Short rounds may be shipped under the following guidelines:

GROUP A - ROUNDS BETWEEN 1% AND 7.5% SHORT OF ORDERED LENGTH.
Rounds shall be segregated, manifested as Group A Shorts, and shipped
separately. Manifests shall be faxed to #3 Hot Mill (3530), Lorain Business
Planning (3044), #3 Seamless Department Manager (3079) and LPM Accounting
(3266).
If Group A shorts exceed 10% of a heat, they shall be referred to LPM Business
Planning and the #3 Seamless Department Manager before shipping.

Rounds greater than 7.5% short shall NOT BE SHIPPED, they must be referred to
LPM Business Planning and the #3 Seamless Department Manager for acceptance or
rejection.
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
                                    TABLE II

NO. 4 SEAMLESS MILL
ALL ROUND SIZES --  +2"/-0" MAXIMUM VARIANCE FROM ORDERED LENGTH.

NOTE:  --  Short rounds may be shipped under the following guidelines:

GROUP A -- ROUNDS NO MORE THAN 20% OR 12 INCHES (WHICHEVER IS LESS) SHORT OF
ORDERED LENGTH.

Group A shorts shall be those billets intended for production of less than or
equal to 2.875" OD pipe.

GROUP B --  ROUNDS NO MORE THAN 10% OR 12 INCHES (WHICHEVER IS LESS)
             SHORT OF ORDERED LENGTH.
Group B shorts shall be those billets intended for production of greater than
2.875" and less than or equal to 4.500" OD pipe.

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

<PAGE>

--------------------------------------------------------------------------------
Short Rounds intended for production of 4.875" OD pipe SHALL NOT BE SHIPPED
until referred to LPM Business Planning and the #4 Seamless Dept. Manager for
acceptance or rejection

Rounds shall be segregated, manifested as Group A or Group B shorts, and shipped
separately.

Monthly consumption of short rounds shall not exceed 0.75%.

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

         2.8- Outside diameter -- Average OD of any section of rolled rounds
         shall not exceed +1/8"/- 0" and for cast rounds +1/8"/-1/8" from the
         ordered OD, measured with a Pipe tape.

         2.9- Ovality  (out of round) -- Maximum diameter minus minimum diameter
         of any section (excluding flat spots and mechanical defects) shall not
         to exceed:

             6" Rounds                 --       3/16"
             10 1/2" Rounds            --       1/4"
             12-1/4" & 12 3/4"         --       5/16"
             13.5"                     --       3/8"

         2.10- Straightness -- All sizes, variance shall not exceed 1/2" per 5'
         of length.

         2.11- End Squareness - Shall not exceed:
             6" Rounds                 --       1/4" From Perpendicular
             10-1/2" Rounds            --       5/16" From Perpendicular
             12-1/4" &12 3/4"          --       3/8" From Perpendicular
             13 -1/2                   --       7/16" From Perpendicular

         Surface Condition

         2.12- Flat Spots -- Width shall not exceed Table 2 dimensions, with the
         following aims Table 1, for maximum width based on round diameter. Flat
         spots exceeding Table 2 limits, may be referred to the respective Hot
         Mill management for acceptance.

                                                Table 1     Table 2
                                                -------     -------

             6" Rounds                 --       1"          1 3/4"
             10 1/2" Rounds            --       1 1/4"      2"
             12-1/4" &12 3/4"          --       1 1/2"      2"
             13-1/2"                   --       1 3/4       2 3/4

         2.13- Mechanical Defects -- The width to depth ratio for mechanical
         defects such as gouges and roll marks, shall be at least 4 to 1. Defect
         depth should not exceed:

                                                            Deth        Width
                                                            ----        -----

             6" Rounds                 --       3/16"       3/4"
             10 1/2 " Rounds           --       1/4"        1"
             12-1/4",12 3/4" & 13 1/2  --       5/16"       1 1/4"
             2.13.a-Burn throughs (localized areas where misaligned burning to
             length has occurred) shall be prohibited when they exceed the
             prescribed mechanical defect depth.

<PAGE>

         2.14- End Condition -- Ends shall be free from gouges and grooves.
         Torch build-up (swarf) in excess of 1/4" thick on 6" rounds and 3/4" on
         10.5" and larger diameter rounds shall be considered rejectable. Rounds
         exceeding these limits shall not be shipped until referred to the
         respective operating department Department Manager for acceptance.

         Steel Quality

         2.15- Surface -- Surface defects, such as seams, cracks, and laps shall
         be minimized through sound steel-making, casting practices and rolling
         practices.

         2.16-Internal -- Internal soundness and density shall be sufficient to
         ensure uniformity of billet weight per unit length. Internal defects
         such as inclusions, and porosity, shall be minimized through sound
         steel-making and casting practices.

         Rounds Loading

         2.17- Rounds shall be loaded in "clean" railroad cars. There should be
         no scrap, bands, slag or other metallic scrap present. Cars should not
         have holes in the flooring, and all sidewalls should be present, and
         stable as applicable.

         2.18- Rounds shall be loaded with the identification end facing east in
         the railroad car. The following loading guidelines should be followed
         as much as possible:

         -- There should be at least a 4' space at the identification end
            of each stacked pile of rounds within the car.

         -- The stacked pile should not exceed the height of the car sidewalls.

         -- The ends of the pile should be square, not staggered. The billets
         should be parallel within the stack, not crooked or skewed.

         2.19- The rounds in each pile shall be of the same heat and RB number,
         with no more than three (3) heats of a single RB number and no more
         than three (3) RB numbers of a single grade in one car.

         Documentation

         2.20- Official tundish analysis shall be maintained in the Republic
         computerized heat release system and on ladle analysis sheets
         maintained by the Republic Technical Services Department. Certified
         test reports shall be required.

         2.21- A billet manifest shall accompany each railroad car and
         accurately identify the heat and RB number of all rounds loaded. Actual
         and manifest round counts shall correspond.

         2.22- Additional documentation, necessary to satisfy order
         requirements, shall be reviewed with Republic personnel for approval,
         prior to order entry.

         Non-Conformances

         2.23- SUPPLYING FACILITY -- Heats or rounds failing to meet quality or
         specification requirements may be rejected by Republic, or referred to
         the LPM Quality Assurance

<PAGE>

         Department for disposition. Referrals should be made during normal
         daylight working hours, whenever possible.

         2.24- INCOMING INSPECTION -- Inbound rounds failing to meet quality
         requirements on incoming inspection shall be subject to return to
         Republic. All count or identification discrepancies shall be corrected
         or resolved by Republic personnel in cooperation with LTC personnel and
         documented prior to charging the rounds. Corrective action may be
         required of Republic in cases of serious or repetitive nonconformances.

         2.25- FINAL INSPECTION -- Rejected LPM Product attributable to supplied
         steel or round quality, shall be reviewed with Republic personnel.
         Samples shall be made available, as applicable. Corrective action may
         be required of Republic in cases of serious or repetitive quality
         problems.

         2.26- GENERAL--The supplier shall maintain a system for the reporting
         of defects and noncompliance discovered during the performance of
         services performed for LPM.

                  2.26.a- This system for the reporting shall meet the intent of
                  the requirements and provisions of Title 10, Code of Federal
                  Requirements Part 21(10-CFR-21). Actual NRC notification shall
                  be conducted by USS Tubular Products.

(3) RESPONSIBILITIES

         3.1-It shall be the responsibility of the Republic steel cast billet
             facility to:
             3.1.a- Use trained personnel to perform the services specified in
             this requirement.
             3.1.b- Generate and maintain documented procedures for the
             production of steel cast billets, to ensure compliance with
             applicable specifications and standards.

         3.2-It shall be the responsibility of LPM Department Manager Quality
             Assurance to:
             3.2.a- Maintain the requirements for steel cast billets supplied
             to the LPM within the scope of this TQR. 3.2.b-Perform, through
             qualified auditors, audits of Republic's billet supplying
             facilities. 3.2.c- Resolve all Heat and steel cast billet
             nonconformances referred by the Republic steel cast billet testing
             facilities.

         3.3-It shall be the responsibility of LPM to:
             3.3.a-Utilize only approved steel cast billet facilities for
             the supplying of steel furnished to the LPM.

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