Exhibit 10.02

EXECUTION COPY

$350,000,000

CREDIT AGREEMENT

Dated as of September 7, 2005

Among

STEEL DYNAMICS, INC.

as Borrower

and

THE INITIAL LENDERS, INITIAL ISSUING BANK AND

SWING LINE BANK NAMED OR DESCRIBED HEREIN

as Initial Lenders, Initial Issuing Bank and Swing Line Bank

and

NATIONAL CITY BANK

as Collateral Agent

and

NATIONAL CITY BANK

as Administrative Agent

and

MORGAN STANLEY SENIOR FUNDING, INC.

as Syndication Agent

and

MORGAN STANLEY SENIOR FUNDING, INC. and BANC OF AMERICA SECURITIES LLC

as Joint Lead Arrangers

Steel Dynamics – Credit Agreement

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

T A B L E   O F   C O N T E N T S

Section Page     ARTICLE I     DEFINITIONS AND ACCOUNTING TERMS     SECTION
1.01. Certain Defined Terms 1 SECTION 1.02. Computation of Time Periods; Other
Definitional Provisions 21 SECTION 1.03. Accounting Terms 21     ARTICLE II    
AMOUNTS AND TERMS OF THE ADVANCES
AND THE LETTERS OF CREDIT     

SECTION 2.01. The Advances and the Letters of Credit 21 SECTION 2.02. Making the
Advances 23 SECTION 2.03. Issuance of and Drawings and Reimbursement Under
Letters of Credit 25 SECTION 2.04. Repayment of Advances 27 SECTION 2.05.
Termination or Reduction of the Commitments 28 SECTION 2.06. Prepayments 28
SECTION 2.07. Interest 29 SECTION 2.08. Fees 30 SECTION 2.09. Conversion of
Advances 31 SECTION 2.10. Increased Costs, Etc 31 SECTION 2.11. Payments and
Computations 33 SECTION 2.12. Taxes 34 SECTION 2.13. Sharing of Payments, Etc 36
SECTION 2.14. Use of Proceeds 36 SECTION 2.15. Defaulting Lenders 37 SECTION
2.16. Evidence of Debt 38 SECTION 2.17. Increase in Revolving Credit Facility 39
    ARTICLE III     CONDITIONS OF LENDING AND
ISSUANCES OF LETTERS OF CREDIT    

SECTION 3.01. Conditions Precedent to Initial Extension of Credit 40 SECTION
3.02. Conditions Precedent to Each Borrowing and Issuance and Renewal 44 SECTION
3.03. Determinations Under Section 3.01 45     ARTICLE IV     REPRESENTATIONS
AND WARRANTIES     SECTION 4.01. Representations and Warranties of the Borrower
45

Steel Dynamics – Credit Agreement

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

ii

ARTICLE V     COVENANTS OF THE BORROWER     SECTION 5.01. Affirmative Covenants
50 SECTION 5.02. Negative Covenants 54 SECTION 5.03. Reporting Requirements 61
SECTION 5.04. Financial Covenants 64     ARTICLE VI     EVENTS OF DEFAULT 

    SECTION 6.01. Events of Default 64 SECTION 6.02. Actions in Respect of the
Letters of Credit upon Default 67     ARTICLE VII     THE AGENTS, ETC.   

SECTION 7.01. Authorization and Action 67 SECTION 7.02. Reliance, Etc 67 SECTION
7.03. Morgan Stanley Senior Funding, Inc., Bank of America, N.A., National City
Bank and Affiliates 68 SECTION 7.04. Lender Party Credit Decision 68 SECTION
7.05. Indemnification 68 SECTION 7.06. Successor Agents 69 SECTION 7.07. The
Lead Arrangers, the Syndication Agent and the Documentation Agent 70     ARTICLE
VIII     MISCELLANEOUS    

SECTION 8.01. Amendments, Etc 70 SECTION 8.02. Notices, Etc. 71 SECTION 8.03. No
Waiver; Remedies 71 SECTION 8.04. Costs and Expenses 71 SECTION 8.05. Right of
Set-off 73 SECTION 8.06. Binding Effect 73 SECTION 8.07. Assignments and
Participations 73 SECTION 8.08. Execution in Counterparts 76 SECTION 8.09. No
Liability of the Issuing Banks 76 SECTION 8.10. Confidentiality 76 SECTION 8.11.
Release of Collateral 76 SECTION 8.12. Jurisdiction, Etc 77 SECTION 8.13.
Governing Law 77 SECTION 8.14. Patriot Act Notice 77 SECTION 8.15. Waiver of
Jury Trial 78

Steel Dynamics – Credit Agreement

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

iii

SCHEDULES           Schedule A – Existing Letter of Credit Schedule I –
Commitments and Applicable Lending Offices Schedule II – Subsidiary Guarantors
Schedule 4.01(a) – Loan Parties Schedule 4.01(b) – Subsidiaries Schedule 4.01(d)
– Authorizations, Approvals, Actions, Notices and Filings Schedule 4.01(f) –
Disclosed Litigation Schedule 4.01(o) – Plans, Multiemployer Plans and Welfare
Plans Schedule 4.01(p) – Environmental Disclosure Schedule 4.01(q) – Open Years
Schedule 4.01(s) – Existing Debt Schedule 4.01(t) – Surviving Debt Schedule
4.01(u) – Liens Schedule 4.01(v) – Investments Schedule 4.01(w) – Intellectual
Property Schedule 4.01(x) – Material Contracts      

EXHIBITS           Exhibit A – Form of Revolving Credit Note Exhibit B – Form of
Notice of Borrowing Exhibit C – Form of Assignment and Assumption Exhibit D –
Form of Security Agreement Exhibit E – Form of Subsidiary Guaranty Exhibit F –
Form of Solvency Certificate Exhibit G-1 – Form of Opinion of Barrett & McNagny,
LLC, Counsel to the Loan Parties Exhibit G-2 – Form of Opinion of Greenberg
Traurig LLP, Counsel to the Loan Parties            

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

                       

Steel Dynamics – Credit Agreement

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

EXECUTION COPY

CREDIT AGREEMENT

CREDIT AGREEMENT dated as of September 7, 2005 among Steel Dynamics, Inc., an
Indiana corporation (the “Borrower”), the banks, financial institutions and
other lenders listed on the signature pages hereof as the Initial Lenders (the
“Initial Lenders”), the bank listed on the signature pages hereof as the Initial
Issuing Bank (the “Initial Issuing Bank” and, together with the Initial Lenders,
the “Initial Lender Parties”), the Swing Line Bank (as hereinafter defined),
National City Bank (“National City”), as collateral agent (together with any
successor collateral agent appointed pursuant to Article VII, in such capacity,
the “Collateral Agent”), and National City, as administrative agent (together
with any successor administrative agent appointed pursuant to Article VII, in
such capacity, the “Administrative Agent” and, together with the Collateral
Agent, the “Agents”), for the Lender Parties (as hereinafter defined), Bank of
America, N.A., General Electric Capital Corporation (GECC”) and Harris N.A., as
Documentation Agents, Morgan Stanley Senior Funding, Inc. (“Morgan Stanley”), as
Syndication Agent, and Morgan Stanley and Banc of America Securities LLC, as
Joint Lead Arrangers.

PRELIMINARY STATEMENTS:

(1)     The Borrower has entered into a Credit Agreement dated as of June 30,
2004 (as amended, supplemented or otherwise modified through the date hereof,
the “Existing Credit Agreement”) with the lenders party thereto from time to
time, GECC, as agent for the lenders party thereto and Morgan Stanley, as Lead
Arranger and syndication agent thereunder.

(2)     The Borrower desires to refinance the indebtedness outstanding under the
Existing Credit Agreement (the “Refinancing”).

(3)     The Borrower has requested that, to effect the Refinancing and to
provide ongoing working capital financing to the Borrower and (to the extent
expressly permitted herein) the Subsidiary Guarantors (as hereinafter defined),
the Lender Parties (as hereinafter defined) make loans and other financial
accommodations to or for the benefit of the Borrower in an aggregate amount up
to $350,000,000 and the Lender Parties have agreed to make such loans and
financial accommodations, but only on and subject to the terms and conditions of
this Agreement.

(4)     The Borrower has existing letters of credit separately issued by Harris
N.A. under the Existing Credit Agreement and listed on Schedule A hereto (the
“Existing Letters of Credit”) which the Borrower desires to include as Letters
of Credit hereunder.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and
agreements contained herein, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

SECTION 1.01. Certain Defined Terms. As used in this Agreement, the following
terms shall have the following meanings (such meanings to be equally applicable
to both the singular and plural forms of the terms defined):

“Administrative Agent” has the meaning specified in the recital of parties to
this Agreement.

Steel Dynamics – Credit Agreement

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

Back to Contents

2

“Administrative Agent’s Account” means the account of the Administrative Agent
maintained by the Administrative Agent at its offices in New York, New York, as
confirmed by the Administrative Agent in writing to the Lender Parties or such
other account as the Administrative Agent shall specify in writing to the Lender
Parties.

“Advance” means a Revolving Credit Advance, a Swing Line Advance or a Letter of
Credit Advance.

“Affiliate” means, as to any Person, any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such
Person or is a director or officer of such Person. For purposes of this
definition, the term “control” (including the terms “controlling”, “controlled
by” and “under common control with”) of a Person means the possession, direct or
indirect, of the power to vote 5% or more of the Voting Interests of such Person
or to direct or cause the direction of the management and policies of such
Person, whether through the ownership of Voting Interests, by contract or
otherwise.

“Agents” has the meaning specified in the recital of parties to this Agreement.

“Agreement” means this Credit Agreement, as amended, supplemented, amended and
restated or otherwise modified from time to time.

“Agreement Value” means, for each Hedge Agreement, on any date of determination,
an amount equal to: (a) in the case of a Hedge Agreement documented pursuant to
the Master Agreement (Multicurrency-Cross Border) published by the International
Swap and Derivatives Association, Inc. (the “Master Agreement”), the amount, if
any, that would be payable by any Loan Party or any of its Subsidiaries to its
counterparty to such Hedge Agreement, as if (i) such Hedge Agreement was being
terminated early on such date of determination, and (ii) such Loan Party or
Subsidiary was the sole “Affected Party”; or (b) in the case of a Hedge
Agreement traded on an exchange, the mark-to-market value of such Hedge
Agreement, which will be the unrealized loss on such Hedge Agreement to the Loan
Party or Subsidiary of a Loan Party party to such Hedge Agreement based on the
settlement price of such Hedge Agreement on such date of determination; or (c)
in all other cases, the mark-to-market value of such Hedge Agreement, which will
be the unrealized loss on such Hedge Agreement to the Loan Party or Subsidiary
of a Loan Party party to such Hedge Agreement as the amount, if any, by which
(i) the present value of the future cash flows to be paid by such Loan Party or
Subsidiary exceeds (ii) the present value of the future cash flows to be
received by such Loan Party or Subsidiary pursuant to such Hedge Agreement;
capitalized terms used and not otherwise defined in this definition shall have
the respective meanings set forth in the above described Master Agreement.

“Applicable Lending Office” means, with respect to each Lender Party, such
Lender Party’s Domestic Lending Office in the case of a Base Rate Advance and
such Lender Party’s Eurodollar Lending Office in the case of a Eurodollar Rate
Advance.

“Applicable Margin” means on the Closing Date, 0.00% per annum for Base Rate
Advances and 0.50% per annum for Eurodollar Rate Advances, and thereafter, a
percentage per annum determined by reference to the Total Debt/Consolidated
EBITDA Ratio as set forth below:

Steel Dynamics – Credit Agreement

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

Back to Contents

3

  Base Rate Advances   Eurodollar Rate Advances  

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

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

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

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

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

Level I         less than 1.5 : 1.0 0.00 % 0.50 %

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

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

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

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

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

Level II         1.5 : 1.0 or greater,         but less than 2.0 : 1.0 0.00 %
0.75 %

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

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

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

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

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

Level III         2.0 : 1.0 or greater,         but less than 2.5 : 1.0 0.25 %
1.25 %

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

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

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

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

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

Level IV         2.5 : 1.0 or greater,         but less than 3.0 : 1.0 0.50 %
1.50 %

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

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

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

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

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

Level V         3.0 : 1.0 or greater,         but less than 3.5 : 1.0 0.75 %
1.75 %

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

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

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

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

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

Level VI         3.5 : 1.0 or greater 1.00 % 2.00 %

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

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

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

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

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

The Applicable Margin for each Base Rate Advance and the Applicable Margin for
each Eurodollar Rate Advance shall be determined by reference to the ratio in
effect from time to time as reflected in the financial statements most recently
delivered pursuant to Section 5.03(b) or (c), as the case may be; provided,
however, that in any event, (a) no change in the Applicable Margin shall be
effective until three Business Days after the date on which the Administrative
Agent receives the financial statements required to be delivered pursuant to
Section 5.03(b) or (c), as the case may be, and a certificate of the Financial
Officer of the Borrower demonstrating such ratio, and (b) the Applicable Margin
shall be at Level VI for so long as the Borrower has not submitted to the
Administrative Agent the information described in clause (a) of this proviso as
and when required under Section 5.03(b) or (c), as the case may be.

“Applicable Percentage” means, as of any date, a percentage per annum determined
by reference to the Total Debt/Consolidated EBITDA Ratio as set forth below:

  Applicable Percentage  

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

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

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

Level I     less than 1.5 : 1.0 0.20 %

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

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

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

Level II     1.5 : 1.0 or greater,     but less than 2.0 : 1.0 0.25 %

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

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

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

Level III     2.0 : 1.0 or greater,     but less than 2.5 : 1.0 0.30 %

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

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

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

Level IV     2.5 : 1.0 or greater,     but less than 3.0 : 1.0 0.35 %

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

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

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

Level V     3.0 : 1.0 or greater,     but less than 3.5 : 1.0 0.40 %

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

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

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

Level VI     3.5 : 1.0 or greater 0.50 %

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

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

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

Steel Dynamics – Credit Agreement

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

Back to Contents

4

It is understood and agreed that (a) no change in the Applicable Percentage
shall be effective until three Business Days after the date on which the
Administrative Agent receives the financial statements required to be delivered
pursuant to Section 5.03(b) or (c), as the case may be, and a certificate of the
Financial Officer of the Borrower demonstrating such ratio, and (b) the
Applicable Percentage shall be at Level VI for so long as the Borrower has not
submitted to the Administrative Agent the information described in clause (a) as
and when required under Section 5.03(b) or (c), as the case may be.

“Appropriate Lender” means, at any time, with respect to (a) the Revolving
Credit Facility, a Lender that has a Commitment with respect to such Facility at
such time, (b) the Letter of Credit Facility, (i) any Issuing Bank and (ii) if
the other Revolving Credit Lenders have made Letter of Credit Advances pursuant
to Section 2.03(c) that are outstanding at such time, each such other Revolving
Credit Lender and (c) the Swing Line Facility, (i) the Swing Line Bank and (ii)
if the other Revolving Credit Lenders have made Swing Line Advances pursuant to
Section 2.02(b) that are outstanding at such time, each such other Revolving
Credit Lender.

“Approved Fund” means (a) any CLO and (b) with respect to any Lender that is a
fund that invests in bank loans, any other fund that invests in bank loans and
is advised or managed by the same investment advisor as such Lender or by an
Affiliate of such investment advisor.

“Assignment and Assumption” means an assignment and assumption entered into by a
Lender Party and an Eligible Assignee, and (to the extent required) accepted by
the Administrative Agent, in accordance with Section 8.07 and in substantially
the form of Exhibit C hereto.

“Available Amount” of any Letter of Credit means, at any time, the maximum
amount available to be drawn under such Letter of Credit at such time (assuming
compliance at such time with all conditions to drawing).

“Base Rate” means a fluctuating interest rate per annum in effect from time to
time, which rate per annum shall at all times be equal to the higher of:

(a)     the Prime Rate; and

(b)     1/2 of 1% per annum above the Federal Funds Rate.

If for any reason the Administrative Agent shall have determined (which
determination shall be conclusive absent manifest error) that it is unable to
ascertain the Federal Funds Rate, including the inability or failure of the
Administrative Agent to obtain sufficient quotations in accordance with the
terms thereof, the Base Rate shall be determined without regard to clause (b) of
this definition, until the circumstances giving rise to such inability no longer
exist. Any change in the Base Rate due to a change in the Prime Rate or the
Federal Funds Rate shall be effective on the effective date of such change.

“Base Rate Advance” means an Advance that bears interest as provided in Section
2.07(a)(i).

“Borrower” has the meaning specified in the recital of parties to this
Agreement.

“Borrower’s Account” means the account of the Borrower maintained by the
Borrower with Harris N.A., as confirmed in writing by the Borrower to the
Administrative Agent, or such other account as the Borrower shall specify in
writing to the Administrative Agent.

Steel Dynamics – Credit Agreement

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

Back to Contents

5

“Borrowing” means a Revolving Credit Borrowing or a Swing Line Borrowing.

“Business Day” means a day of the year on which banks are not required or
authorized by law to close in New York City and, if the applicable Business Day
relates to any Eurodollar Rate Advances, a day on which dealings are carried on
in the London interbank market.

“Capitalized Leases” means all leases that have been or should be, in accordance
with GAAP, recorded as capitalized leases.

“Cash Equivalents” means any of the following, to the extent owned by the
Borrower or any of the Subsidiary Guarantors free and clear of all Liens other
than Liens created under the Collateral Documents and having a maturity of not
greater than 180 days from the date of acquisition thereof: (a) readily
marketable direct obligations of the Government of the United States or any
agency or instrumentality thereof or obligations unconditionally guaranteed by
the full faith and credit of the Government of the United States, (b)
certificates of deposit of or time deposits with any commercial bank that is a
Lender Party or a member of the Federal Reserve System, issues (or the parent of
which issues) commercial paper rated as described in clause (c) below, is
organized under the laws of the United States or any State thereof and has
combined capital and surplus of at least $1 billion, (c) commercial paper in an
aggregate amount of no more than $15,000,000 per issuer outstanding at any time,
issued by any corporation organized under the laws of any State of the United
States and rated at least “Prime-2” (or the then equivalent grade) by Moody’s
Investors Service, Inc. or “A-2” (or the then equivalent grade) by Standard &
Poor’s, a division of The McGraw-Hill Companies, Inc. or (d) Investments,
classified in accordance with GAAP as current assets of the Borrower or any of
its Subsidiaries, in money market investment programs registered under the
Investment Company Act of 1940, as amended, which are administered by financial
institutions that have the highest rating obtainable from either Moody’s or S&P,
and the portfolios of which are limited solely to Investments of the character,
quality and maturity described in clauses (a), (b) and (c) of this definition.

“CERCLA” means the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended from time to time.

“CERCLIS” means the Comprehensive Environmental Response, Compensation and
Liability Information System maintained by the U.S. Environmental Protection
Agency.

“Change of Control” means the occurrence of any of the following: (a) any Person
or two or more Persons acting in concert shall have acquired beneficial
ownership (within the meaning of Rule 13d-3 of the Securities and Exchange
Commission under the Securities Exchange Act of 1934), directly or indirectly,
of Voting Interests of the Borrower (or other securities convertible into such
Voting Interests) representing 35% or more of the combined voting power of all
Voting Interests of the Borrower; (b) individuals who on the Effective Date
constitute the board of directors of the Borrower (together with any new
directors whose election by the board of directors of the Borrower or whose
nomination by the board of directors of the Borrower for election by the
Borrower’s stockholders was approved by a vote of at least two-thirds of the
members of the board of directors of the Borrower then in office who either were
members of the board of directors of the Borrower on the Effective Date or whose
election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the members of the board of directors of the
Borrower then in office; (c) any Person or two or more Persons acting in concert
shall have acquired by contract or otherwise, or shall have entered into a
contract or arrangement that, upon consummation, will result in its or their
acquisition of the power to exercise, directly or indirectly, a controlling
influence over the management or policies of the Borrower or (d) any “Change of
Control” or “Change in Control” as defined in the Indenture or under any other
Indebtedness permitted under this Agreement.

Steel Dynamics – Credit Agreement

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

Back to Contents

6

“CLO” means any entity (whether a corporation, partnership, trust or otherwise)
that is engaged in making, purchasing, holding or otherwise investing in bank
loans and similar extensions of credit in the ordinary course of its business
and is administered or managed by a Lender or an Affiliate of such Lender.

“Collateral” means all “Collateral” referred to in the Collateral Documents and
all other property that is or is intended to be subject to any Lien in favor of
the Collateral Agent for the benefit of the Secured Parties which, for the
avoidance of doubt, shall include the Subject Property.

“Collateral Agent” has the meaning specified in the recital of parties to this
Agreement.

“Collateral Documents” means the Security Agreement and any other agreement that
creates or purports to create a Lien in favor of the Collateral Agent for the
benefit of the Secured Parties.

“Commitment” means Revolving Credit Commitment or a Letter of Credit Commitment.

“Confidential Information” has the meaning specified in Section 8.10.

“Consolidated” refers to the consolidation of accounts in accordance with GAAP.

“Contingent Obligation” means, with respect to any Person, any Obligation or
arrangement of such Person to guarantee or intended to guarantee any Debt,
leases, dividends or other payment Obligations (“primary obligations”) of any
other Person (the “primary obligor”) in any manner, whether directly or
indirectly, including, without limitation, (a) the direct or indirect guarantee,
endorsement (other than for collection or deposit in the ordinary course of
business), co-making, discounting with recourse or sale with recourse by such
Person of the Obligation of a primary obligor, (b) the Obligation to make
take-or-pay or similar payments, if required, regardless of nonperformance by
any other party or parties to an agreement (other than Obligations to make
take-or-pay or similar payments contained in natural gas, processed gas or
electricity contracts entered into by such Person in the ordinary course of
business not inconsistent with the prior practice of such Person) or (c) any
Obligation of such Person, whether or not contingent, (i) to purchase any such
primary obligation or any property constituting direct or indirect security
therefor, (ii) to advance or supply funds (A) for the purchase or payment of any
such primary obligation or (B) to maintain working capital or equity capital of
the primary obligor or otherwise to maintain the net worth or solvency of the
primary obligor, (iii) to purchase property, assets, securities or services
primarily for the purpose of assuring the owner of any such primary obligation
of the ability of the primary obligor to make payment of such primary obligation
or (iv) otherwise to assure or hold harmless the holder of such primary
obligation against loss in respect thereof. The amount of any Contingent
Obligation shall be deemed to be an amount equal to the stated or determinable
amount of the primary obligation in respect of which such Contingent Obligation
is made (or, if less, the maximum amount of such primary obligation for which
such Person may be liable pursuant to the terms of the instrument evidencing
such Contingent Obligation) or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof (assuming such Person is
required to perform thereunder), as determined by such Person in good faith.

Steel Dynamics – Credit Agreement

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

Back to Contents

7

“Conversion”, “Convert” and “Converted” each refer to a conversion of Advances
of one Type into Advances of the other Type pursuant to Section 2.09 or 2.10.

“Convertible Notes Documents” means the 4% convertible subordinated notes issued
December 23, 2002 due 2012 in an aggregate principal amount of $115 million and
all agreements, documents, indentures and instruments pursuant to which such
notes are issued, in each case as amended, to the extent permitted under the
Loan Documents.

“Debt” of any Person means, without duplication, (a) all indebtedness of such
Person for borrowed money, (b) all Obligations of such Person for the deferred
purchase price of property or services (other than trade payables not overdue by
more than 60 days incurred in the ordinary course of such Person’s business),
(c) all Obligations of such Person evidenced by notes, bonds, debentures or
other similar instruments, (d) all Obligations of such Person created or arising
under any conditional sale or other title retention agreement with respect to
property acquired by such Person (even though the rights and remedies of the
seller or lender under such agreement in the event of default are limited to
repossession or sale of such property), (e) all Obligations of such Person as
lessee under Capitalized Leases, (f) all Obligations of such Person under
acceptance, letter of credit or similar facilities, (g) all Obligations of such
Person to purchase, redeem, retire, defease or otherwise make any payment in
respect of any Equity Interests in such Person or any other Person or any
warrants, rights or options to acquire such capital stock, valued, in the case
of Redeemable Preferred Interests, at the greater of its voluntary or
involuntary liquidation preference plus accrued and unpaid dividends, (h) all
Obligations of such Person in respect of Hedge Agreements, valued at the
Agreement Value thereof, (i) all Contingent Obligations of such Person and (j)
all indebtedness and other payment Obligations referred to in clauses (a)
through (i) above of another Person secured by (or for which the holder of such
Debt has an existing right, contingent or otherwise, to be secured by) any Lien
on property (including, without limitation, accounts and contract rights) owned
by such Person, even though such Person has not assumed or become liable for the
payment of such indebtedness or other payment Obligations.

“Debt for Borrowed Money” of any Person means, without duplication, all items
described in clauses (a), (c), (e), (f) and, to the extent it supports an
obligation of the type described in any of clauses (a), (c), (e) and (f), any
item described in clause (i) or (j), in each case of the definition of Debt.

“Default” means any Event of Default or any event that would constitute an Event
of Default but for the requirement that notice be given or time elapse or both.

“Default Termination Notice” has the meaning specified in Section 2.01(e).

“Defaulted Advance” means, with respect to any Lender Party at any time, the
portion of any Advance required to be made by such Lender Party to the Borrower
pursuant to Section 2.01 or 2.02 at or prior to such time that has not been made
by such Lender Party or by the Administrative Agent for the account of such
Lender Party pursuant to Section 2.02(e) as of such time. In the event that a
portion of a Defaulted Advance shall be deemed made pursuant to Section 2.15(a),
the remaining portion of such Defaulted Advance shall be considered a Defaulted
Advance originally required to be made pursuant to Section 2.01 on the same date
as the Defaulted Advance so deemed made in part.

Steel Dynamics – Credit Agreement

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

Back to Contents

8

“Defaulted Amount” means, with respect to any Lender Party at any time, any
amount required to be paid by such Lender Party to any Agent or any other Lender
Party hereunder or under any other Loan Document at or prior to such time that
has not been so paid as of such time, including, without limitation, any amount
required to be paid by such Lender Party to (a) the Swing Line Bank pursuant to
Section 2.02(b) to purchase a portion of a Swing Line Advance made by the Swing
Line Bank, (b) any Issuing Bank pursuant to Section 2.03(c) to purchase a
portion of a Letter of Credit Advance made by such Issuing Bank, (c) the
Administrative Agent pursuant to Section 2.02(e) to reimburse the Administrative
Agent for the amount of any Advance made by the Administrative Agent for the
account of such Lender Party, (d) any other Lender Party pursuant to Section
2.13 to purchase any participation in Advances owing to such other Lender Party
and (e) any Agent or any Issuing Bank pursuant to Section 7.05 to reimburse such
Agent or such Issuing Bank for such Lender Party’s ratable share of any amount
required to be paid by the Lender Parties to such Agent or such Issuing Bank as
provided therein. In the event that a portion of a Defaulted Amount shall be
deemed paid pursuant to Section 2.15(b), the remaining portion of such Defaulted
Amount shall be considered a Defaulted Amount originally required to be paid
hereunder or under any other Loan Document on the same date as the Defaulted
Amount so deemed paid in part.

“Defaulting Lender” means, at any time, any Lender Party that, at such time, (a)
owes a Defaulted Advance or a Defaulted Amount or (b) shall take any action or
be the subject of any action or proceeding of a type described in Section
6.01(f).

“Disclosed Litigation” has the meaning specified in Section 3.01(f).

“Documentation Agent” has the meaning specified in the recital of parties to
this Agreement.

“Domestic Lending Office” means, with respect to any Lender Party, the office of
such Lender Party specified as its “Domestic Lending Office” opposite its name
on Schedule I hereto or in the Assignment and Assumption pursuant to which it
became a Lender Party, as the case may be, or such other office of such Lender
Party as such Lender Party may from time to time specify to the Borrower and the
Administrative Agent.

“EBITDA” means, for any period, the sum, determined on a Consolidated basis, of
(a) net income (or net loss) excluding any extraordinary, unusual or
nonrecurring gains and any extraordinary, unusual or nonrecurring losses
comprised of Non-Cash Charges, (b) interest expense, (c) income tax expense, (d)
depreciation expense and (e) amortization expense, in each case of the Borrower
and its Subsidiaries, determined in accordance with GAAP for such period (and,
in the case of clauses (b) through (e), to the extent deducted in determining
the net income described in clause (a)).

“Effective Date” means the first date on which the conditions set forth in
Article III shall have been satisfied.

“Eligible Assignee” means any commercial bank or financial institution
(including, without limitation any Approved Fund) as approved by the
Administrative Agent and, so long as no Default or Event of Default has occurred
and is continuing at the time of such assignment, by the Borrower (such
approvals not to be unreasonably withheld or delayed); provided, however, that
(a) neither any Loan Party nor any Affiliate of a Loan Party shall qualify as an
Eligible Assignee under this definition and (b) no approval of the
Administrative Agent or the Borrower shall be required for assignments to
Affiliates or Approved Funds of Lender Parties or for assignments to Lenders.

Steel Dynamics – Credit Agreement

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

Back to Contents

9

“Environmental Action” means any action, suit, demand, demand letter, claim,
notice of non-compliance or violation, notice of liability or potential
liability, investigation, proceeding, consent order or consent agreement
relating in any way to any Environmental Law, any Environmental Permit or
Hazardous Material or arising from alleged injury or threat to health, safety or
the environment, including, without limitation, (a) by any governmental or
regulatory authority for enforcement, cleanup, removal, response, remedial or
other actions or damages and (b) by any governmental or regulatory authority or
third party for damages, contribution, indemnification, cost recovery,
compensation or injunctive relief.

“Environmental Law” means any Federal, state, local or foreign statute, law,
ordinance, rule, regulation, code, order, writ, judgment, injunction, decree or
judicial or agency interpretation, policy or guidance relating to pollution or
protection of the environment, health, safety or natural resources, including,
without limitation, those relating to the use, handling, transportation,
treatment, storage, disposal, release or discharge of Hazardous Materials.

“Environmental Permit” means any permit, approval, identification number,
license or other authorization required under any Environmental Law.

“Equity Interests” means, with respect to any Person, shares of capital stock of
(or other ownership or profit interests in) such Person, warrants, options or
other rights for the purchase or other acquisition from such Person of shares of
capital stock of (or other ownership or profit interests in) such Person,
securities convertible into or exchangeable for shares of capital stock of (or
other ownership or profit interests in) such Person or warrants, rights or
options for the purchase or other acquisition from such Person of such shares
(or such other interests), and other ownership or profit interests in such
Person (including, without limitation, partnership, member or trust interests
therein), whether voting or nonvoting, and whether or not such shares, warrants,
options, rights or other interests are authorized or otherwise existing on any
date of determination.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the regulations promulgated and rulings issued
thereunder.

“ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a
member of the controlled group of any Loan Party, or under common control with
any Loan Party, within the meaning of Section 414 of the Internal Revenue Code.

“ERISA Event” means (a) (i) the occurrence of a reportable event, within the
meaning of Section 4043 of ERISA, with respect to any Plan unless the 30-day
notice requirement with respect to such event has been waived by the PBGC or
(ii) the requirements of Section 4043(b) of ERISA apply with respect to a
contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and
an event described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c)
of ERISA is reasonably expected to occur with respect to such Plan within the
following 30 days; (b) the application for a minimum funding waiver with respect
to a Plan; (c) the provision by the administrator of any Plan of a notice of
intent to terminate such Plan, pursuant to Section 4041(a)(2) of ERISA
(including any such notice with respect to a plan amendment referred to in
Section 4041(e) of ERISA); (d) the cessation of operations at a facility of any
Loan Party or any ERISA Affiliate in the circumstances described in Section
4062(e) of ERISA; (e) the withdrawal by any Loan Party or any ERISA Affiliate
from a Multiple Employer Plan during a plan year for which it was a substantial
employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions for
imposition of a lien under Section 302(f) of ERISA shall have been met with
respect to any Plan; (g) the adoption of an amendment to a Plan requiring the
provision of security to such Plan pursuant to Section 307 of ERISA; or (h) the
institution by the PBGC of proceedings to terminate a Plan pursuant to Section
4042 of ERISA, or the occurrence of any event or condition described in Section
4042 of ERISA that constitutes grounds for the termination of, or the
appointment of a trustee to administer, such Plan.

Steel Dynamics – Credit Agreement

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

Back to Contents

10

“Eurocurrency Liabilities” has the meaning specified in Regulation D of the
Board of Governors of the Federal Reserve System, as in effect from time to
time.

“Eurodollar Lending Office” means, with respect to any Lender Party, the office
of such Lender Party specified as its “Eurodollar Lending Office” opposite its
name on Schedule I hereto or in the Assignment and Assumption pursuant to which
it became a Lender Party (or, if no such office is specified, its Domestic
Lending Office), or such other office of such Lender Party as such Lender Party
may from time to time specify to the Borrower and the Administrative Agent.

“Eurodollar Rate” means, for any Interest Period, an interest rate per annum
equal to the rate per annum obtained by dividing (a) the rate per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) appearing on the page of the
Telerate screen (or any successor page) that displays an average British Bankers
Association Interest Settlement Rate for deposits in Dollars (for delivery on
the first day of such Interest Period) with a term equivalent to such Interest
Period, determined as of approximately 11:00 A.M. (London time) two Business
Days before the first day of such Interest Period (provided that, if for any
reason such rate does not appear on such page or service or such page or service
shall not be available, the term “Eurodollar Rate” shall mean the rate per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to the rate
determined by the Administrative Agent to be the offered rate on such other page
or other service that displays an average British Bankers Association Interest
Settlement Rate for deposits in Dollars (for delivery on the first day of such
Interest Period) with a term equivalent to such Interest Period, determined as
of approximately 11:00 A.M. (London time) two Business Days prior to the first
day of such Interest Period) by (b) a percentage equal to 100% minus the
Eurodollar Rate Reserve Percentage for such Interest Period.

“Eurodollar Rate Advance” means an Advance that bears interest as provided in
Section 2.07(a)(ii).

“Eurodollar Rate Reserve Percentage” for any Interest Period for all Eurodollar
Rate Advances comprising part of the same Borrowing means the reserve percentage
applicable two Business Days before the first day of such Interest Period under
regulations issued from time to time by the Board of Governors of the Federal
Reserve System (or any successor) for determining the maximum reserve
requirement (including, without limitation, any emergency, supplemental or other
marginal reserve requirement) for a member bank of the Federal Reserve System in
New York City with respect to liabilities or assets consisting of or including
Eurocurrency Liabilities (or with respect to any other category of liabilities
that includes deposits by reference to which the interest rate on Eurodollar
Rate Advances is determined) having a term equal to such Interest Period.

“Events of Default” has the meaning specified in Section 6.01.

“Excluded Subsidiary” means each of Paragon Steel Enterprises LLC, an Indiana
limited liability company, STLD Holdings, Inc., an Indiana corporation, and
Dynamic Aviation LLC, an Indiana limited liability company and each of their
respective subsidiaries.

“Existing Credit Agreement” has the meaning specified in the Preliminary
Statements hereto.

Steel Dynamics – Credit Agreement

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

Back to Contents

11

“Existing Debt” means the Debt of each Loan Party and its Subsidiaries
outstanding immediately before giving effect to the consummation of the
Transaction.

“Existing Letters of Credit” has the meaning specified in the Preliminary
Statements hereto.

“Extraordinary Receipt” means any cash received by or paid to or for the account
of any Person not in the ordinary course of business, consisting of proceeds of
insurance, condemnation awards (and payments in lieu thereof) and indemnity
payments, in each case, with respect to assets constituting Collateral;
provided, however, that an Extraordinary Receipt shall not include cash receipts
received from proceeds of insurance, condemnation awards (or payments in lieu
thereof) or indemnity payments to the extent that such proceeds, awards or
payments (a) in respect of loss or damage to inventory are applied (or in
respect of which expenditures were previously incurred) to replace or repair the
inventory in respect of which such proceeds were received in accordance with the
terms of the Loan Documents, so long as such application is made within 12
months after the occurrence of such damage or loss or (b) are received by any
Person in respect of any third party claim against such Person and applied to
pay (or to reimburse such Person for its prior payment of) such claim and the
costs and expenses of such Person with respect thereto.

“Facility” means the Revolving Credit Facility, the Swing Line Facility or the
Letter of Credit Facility.

“Federal Funds Rate” means, for any period, a fluctuating interest rate per
annum equal for each day during such period to the weighted average of the rates
on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers, as published for such day (or, if such
day is not a Business Day, for the next preceding Business Day) by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day that
is a Business Day, the average (rounded upwards, if necessary, to the next
higher 1/100th of 1%) of the quotations for such day for such transactions
received by the Administrative Agent from three Federal funds brokers of
recognized standing selected by it.

“Fee Letter” means the fee letter dated August 9, 2005 between the Borrower and
the Lead Arrangers, as amended, supplemented or otherwise modified from time to
time.

“Financial Officer” means any of the Chief Executive Officer, the Chief
Financial Officer, the Chief Accounting Officer and the Corporate
Controller/Assistant Secretary.

“Fiscal Year” means a fiscal year of the Borrower and its Consolidated
Subsidiaries ending on December 31 in any calendar year.

“Funded Debt” of any Person means Debt in respect of the Advances, in the case
of the Borrower, and all other Debt of such Person that by its terms matures
more than one year after the date of determination or matures within one year
from such date but is renewable or extendible, at the option of such Person, to
a date more than one year after such date or arises under a revolving credit or
similar agreement that obligates the lender or lenders to extend credit during a
period of more than one year after such date, including, without limitation, all
amounts of Funded Debt of such Person required to be paid or prepaid within one
year after the date of determination.

“GAAP” has the meaning specified in Section 1.03.

Steel Dynamics – Credit Agreement

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

Back to Contents

12

“Guaranties” means, collectively, each Subsidiary Guaranty entered into from
time to time.

“Guarantors” means the Subsidiary Guarantors.

“Hazardous Materials” means (a) petroleum or petroleum products, by-products or
breakdown products, radioactive materials, asbestos-containing materials,
polychlorinated biphenyls and radon gas and (b) any other chemicals, materials
or substances designated, classified or regulated as hazardous or toxic or as a
pollutant or contaminant under any Environmental Law.

“Hedge Agreements” means interest rate swap, cap or collar agreements, interest
rate future or option contracts, currency swap agreements, currency future or
option contracts and other hedging agreements.

“Hedge Bank” means any Lender Party or an Affiliate of a Lender Party in its
capacity as a party to a Secured Hedge Agreement.

“Indemnified Party” has the meaning specified in Section 8.04(b).

“Indenture” means the Indenture dated as of March 26, 2002 and entered into by
and among the Borrower, SDI Investment Company, a Delaware corporation, as
guarantor and The Bank of New York, as trustee, as such Indenture may be
amended, supplemented or otherwise modified from time to time in accordance
herewith and therewith.

“Information Memorandum” means the confidential information memorandum dated
August, 2005 used by the Lead Arrangers in connection with the syndication of
the Commitments.

“Initial Extension of Credit” means the earlier to occur of the initial
Borrowing and the initial issuance of a Letter of Credit hereunder.

“Initial Issuing Bank”, “Initial Lender Parties” and “Initial Lenders” each has
the meaning specified in the recital of parties to this Agreement.

“Interest Coverage Ratio” means, at any date of determination, the ratio of (a)
Consolidated EBITDA to (b) interest payable on, and amortization of debt
discount in respect of, all Debt for Borrowed Money, in each case, of or by the
Borrower and its Subsidiaries during the four consecutive fiscal quarters most
recently ended for which financial statements are required to be delivered to
the Lender Parties pursuant to Section 5.03(b) or (c), as the case may be.

“Insufficiency” means, with respect to any Plan, the amount, if any, of its
unfunded benefit liabilities, as defined in Section 4001(a)(18) of ERISA.

“Interest Period” means, for each Eurodollar Rate Advance comprising part of the
same Borrowing, the period commencing on the date of such Eurodollar Rate
Advance or the date of the Conversion of any Base Rate Advance into such
Eurodollar Rate Advance, and ending on the last day of the period selected by
the Borrower pursuant to the provisions below and, thereafter, each subsequent
period commencing on the last day of the immediately preceding Interest Period
and ending on the last day of the period selected by the Borrower pursuant to
the provisions below. The duration of each such Interest Period shall be one,
two, three or six months, as the Borrower may, upon notice received by the
Administrative Agent not later than 11:00 A.M. (New York City time) on the third
Business Day prior to the first day of such Interest Period, select; provided,
however, that:

Steel Dynamics – Credit Agreement

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

Back to Contents

13

(a)     the Borrower may not select any Interest Period with respect to any
Eurodollar Rate Advance under a Facility that ends after any principal repayment
installment date for such Facility unless, after giving effect to such
selection, the aggregate principal amount of Base Rate Advances and of
Eurodollar Rate Advances having Interest Periods that end on or prior to such
principal repayment installment date for such Facility shall be at least equal
to the aggregate principal amount of Advances under such Facility due and
payable on or prior to such date;

(b)     Interest Periods commencing on the same date for Eurodollar Rate
Advances comprising part of the same Borrowing shall be of the same duration;

(c)     whenever the last day of any Interest Period would otherwise occur on a
day other than a Business Day, the last day of such Interest Period shall be
extended to occur on the next succeeding Business Day, provided, however, that,
if such extension would cause the last day of such Interest Period to occur in
the next following calendar month, the last day of such Interest Period shall
occur on the next preceding Business Day;

(d)     whenever the first day of any Interest Period occurs on a day of an
initial calendar month for which there is no numerically corresponding day in
the calendar month that succeeds such initial calendar month by the number of
months equal to the number of months in such Interest Period, such Interest
Period shall end on the last Business Day of such succeeding calendar month; and

(e)     at any one time no more than twelve (12) different Interest Periods
shall be in effect.

“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from
time to time, and the regulations promulgated and rulings issued thereunder.

“Inventory” means all Inventory referred to in Section 1(b) of the Security
Agreement.

“Investment” in any Person means any loan or advance to such Person, any
purchase or other acquisition of any Equity Interests or Debt or the assets
comprising a division or business unit or a substantial part or all of the
business of such Person, any capital contribution to such Person or any other
direct or indirect investment in such Person, including, without limitation, any
acquisition by way of a merger or consolidation and any arrangement pursuant to
which the investor incurs Debt of the types referred to in clause (i) or (j) of
the definition of “Debt” in respect of such Person.

“Issuing Bank” means the Initial Issuing Bank, any other financial institution
approved as an Issuing Bank by the Administrative Agent and the Borrower, any
Eligible Assignee to which all or a portion of a Letter of Credit Commitment
hereunder has been assigned pursuant to Section 8.07 so long as such Eligible
Assignee expressly agrees to perform in accordance with their terms all of the
obligations that by the terms of this Agreement are required to be performed by
it as an Issuing Bank and notifies the Administrative Agent of its assumption of
such duties, for so long as such Initial Issuing Bank, financial institution or
Eligible Assignee, as the case may be, shall have a Letter of Credit Commitment
and in any case with respect to the Existing Letters of Credit, Harris N.A.

Steel Dynamics – Credit Agreement

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

Back to Contents

14

“L/C Cash Collateral Account” has the meaning specified in the Security
Agreement.

“L/C Related Documents” has the meaning specified in Section 2.04(e)(ii).

“Lead Arrangers” means Morgan Stanley Senior Funding, Inc. and Banc of America
Securities LLC.

“Lender Party” means any Lender, any Issuing Bank or the Swing Line Bank.

“Lenders” means the Initial Lenders and each Person that shall become a Lender
hereunder pursuant to Section 8.07 for so long as such Initial Lender or Person,
as the case may be, shall be a party to this Agreement.

“Letter of Credit Advance” means an advance made by any Issuing Bank or any
Revolving Credit Lender pursuant to Section 2.03(c).

“Letter of Credit Agreement” has the meaning specified in Section 2.03(a).

“Letter of Credit Commitment” means, with respect to any Issuing Bank at any
time, the amount set forth opposite such Issuing Bank’s name on Schedule I
hereto under the caption “Letter of Credit Commitment” or, if such Issuing Bank
or a subsequent Issuing Bank has entered into an Assignment and Assumption, set
forth for each such Issuing Bank in the Register maintained by the
Administrative Agent pursuant to Section 8.07(d) as such Issuing Bank’s “Letter
of Credit Commitment”, as such amount may be reduced at or prior to such time
pursuant to Section 2.05.

“Letter of Credit Facility” means, at any time, an amount equal to the lesser of
(a) the aggregate amount of the Issuing Banks’ Letter of Credit Commitments at
such time and (b) $30,000,000, as such amount may be reduced at or prior to such
time pursuant to Section 2.05.

“Letters of Credit” means, collectively, (a) the letters of credit issued
pursuant toSection 2.01(c) hereof from time to time and (b) the Existing Letters
of Credit.

“Lien” means any lien, security interest or other charge or encumbrance of any
kind, or any other type of preferential arrangement, including, without
limitation, the lien or retained security title of a conditional vendor and any
easement, right of way or other encumbrance on title to real property.

“Loan Documents” means (a) for purposes of this Agreement and the Notes and any
amendment, supplement or modification hereof or thereof, (i) this Agreement,
(ii) the Notes, (iii) the Guaranties, (iv) the Collateral Documents, (v) the Fee
Letter and (vi) each Letter of Credit Agreement and (b) for purposes of the
Guaranties and the Collateral Documents and for all other purposes other than
for purposes of this Agreement and the Notes, (i) this Agreement, (ii) the
Notes, (iii) the Guaranties, (iv) the Collateral Documents, (v) the Fee Letter,
(vi) each Letter of Credit Agreement, (vii) each Secured Hedge Agreement and
(viii) each Secured Cash Management Agreement, in each case as amended.

“Loan Parties” means the Borrower and the Guarantors.

Steel Dynamics – Credit Agreement

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

Back to Contents

15

“Margin Stock” has the meaning specified in Regulation U.

“Material Adverse Change” means any material adverse change in the business,
condition (financial or otherwise), operations, performance, properties or
prospects of the Borrower or the Borrower and its Subsidiaries taken as a whole.

“Material Adverse Effect” means a material adverse effect on (a) the business,
condition (financial or otherwise), operations, performance, properties or
prospects of the Borrower or the Borrower and its Subsidiaries, taken as a
whole, (b) the rights and remedies of any Agent or any Lender Party under any
Loan Document, (c) the ability of any Loan Party to perform its Obligations
under any Loan Document to which it is or is to be a party or (d) the
Transaction.

“Material Contract” means, with respect to the Borrower and each other Person,
each contract, if any, to which the Borrower or such Person, as applicable, is a
party and which is material to the business, condition (financial or otherwise),
operations, performance, properties or prospects of the Borrower and its
Subsidiaries, taken as a whole.

“Mesabi Nugget” means Mesabi Nugget, LLC or any Subsidiary, including, without
limitation, any Excluded Subsidiary, involved directly or indirectly in the
development, application and use of the Itmk3 technology.

“Morgan Stanley” has the meaning specified in the recital of parties to this
Agreement.

“Multiemployer Plan” means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate is making or
accruing an obligation to make contributions, or has within any of the preceding
five plan years made or accrued an obligation to make contributions.

“Multiple Employer Plan” means a single employer plan, as defined in Section
4001(a)(15) of ERISA, that (a) is maintained for employees of any Loan Party or
any ERISA Affiliate and at least one Person other than the Loan Parties and the
ERISA Affiliates or (b) was so maintained and in respect of which any Loan Party
or any ERISA Affiliate could have liability under Section 4064 or 4069 of ERISA
in the event such plan has been or were to be terminated.

“Net Cash Proceeds” means, with respect to any Extraordinary Receipt, the
aggregate amount of cash received in connection therewith.

“Non-Cash Charges” means, with respect to the Borrower and its Subsidiaries, for
any period, the aggregate non-cash charges and expenses reducing net income of
the Borrower and its Subsidiaries for such period, all as determined on a
Consolidated basis; provided that “Non-Cash Charges” shall not include any such
charges that require an accrual of or a reserve for cash for any future period.

“Note” means a promissory note of the Borrower payable to the order of any
Revolving Credit Lender, in substantially the form of Exhibit A hereto,
evidencing the aggregate indebtedness of the Borrower to such Lender resulting
from the Revolving Credit Advances, Letter of Credit Advances and Swing Line
Advances made by such Lender, as amended, endorsed, extended or otherwise
modified from time to time.

“Notice of Borrowing” has the meaning specified in Section 2.02(a).

Steel Dynamics – Credit Agreement

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

Back to Contents

16

“Notice of Issuance” has the meaning specified in Section 2.03(a).

“Notice of Renewal” has the meaning specified in Section 2.01(c).

“Notice of Swing Line Borrowing” has the meaning specified in Section 2.02(b).

“Notice of Termination” has the meaning specified in Section 2.01(c).

“NPL” means the National Priorities List under CERCLA.

“Obligation” means, with respect to any Person, any payment, performance or
other obligation of such Person of any kind, including, without limitation, any
liability of such Person on any claim, whether or not the right of any creditor
to payment in respect of such claim is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, disputed, undisputed, legal,
equitable, secured or unsecured, and whether or not such claim is discharged,
stayed or otherwise affected by any proceeding referred to in Section 6.01(f).
Without limiting the generality of the foregoing, the Obligations of any Loan
Party under the Loan Documents include (a) the obligation to pay principal,
interest, Letter of Credit commissions, charges, expenses, fees, attorneys’ fees
and disbursements, indemnities and other amounts payable by such Loan Party
under any Loan Document and (b) the obligation of such Loan Party to reimburse
any amount in respect of any of the foregoing that any Lender Party, in its sole
discretion, may elect to pay or advance on behalf of such Loan Party.

“Open Year” has the meaning specified in Section 4.01(q)(ii).

“Other Taxes” has the meaning specified in Section 2.12(b).

“Patriot Act” has the meaning specified in Section 8.14.

“PBGC” means the Pension Benefit Guaranty Corporation (or any successor).

“Permitted Liens” means such of the following as to which no enforcement,
collection, execution, levy or foreclosure proceeding shall have been commenced:
(a) Liens for taxes, assessments and governmental charges or levies to the
extent not required to be paid under Section 5.01(b); (b) Liens imposed by law,
such as materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens
and other similar Liens arising in the ordinary course of business securing
obligations that (i) are not overdue for a period of more than 30 days or
otherwise are contested in good faith and for which a bond shall have been
posted in the amount of such obligations and (ii) individually or together with
all other Permitted Liens outstanding on any date of determination do not
materially adversely affect the use of the property to which they relate; and
(c) pledges or deposits to secure obligations under workers’ compensation laws
or similar legislation or to secure public or statutory obligations.

“Person” means an individual, partnership, corporation (including a business
trust), limited liability company, joint stock company, trust, unincorporated
association, joint venture or other entity, or a government or any political
subdivision or agency thereof.

“Plan” means a Single Employer Plan or a Multiple Employer Plan.

“Pledged Debt” has the meaning specified in the Security Agreement.

Steel Dynamics – Credit Agreement

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

Back to Contents

17

“Pledged Shares” has the meaning specified in the Security Agreement.

“Preferred Interests” means, with respect to any Person, Equity Interests issued
by such Person that are entitled to a preference or priority over any other
Equity Interests issued by such Person upon any distribution of such Person’s
property and assets, whether by dividend or upon liquidation.

“Prime Rate” means the rate publicly quoted from time to time by The Wall Street
Journal as the “prime rate” (or, if The Wall Street Journal ceases quoting a
prime rate, the highest per annum rate of interest published by the Federal
Reserve Board in Federal Reserve statistical release H.15 (519) entitled
“Selected Interest Rates” as the Bank prime loan rate or its equivalent).

“Process Agent” has the meaning specified in Section 8.13.

“Pro Rata Share” of any amount means, with respect to any Revolving Credit
Lender at any time, the product of such amount times a fraction the numerator of
which is the amount of such Lender’s Revolving Credit Commitment at such time
(or, if the Commitments shall have been terminated pursuant to Section 2.05 or
6.01, such Lender’s Revolving Credit Commitment as in effect immediately prior
to such termination) and the denominator of which is the Revolving Credit
Facility at such time (or, if the Commitments shall have been terminated
pursuant to Section 2.05 or 6.01, the Revolving Credit Facility as in effect
immediately prior to such termination).

“Receivables” means all Receivables referred to in Section 1(c) of the Security
Agreement.

“Redeemable” means, with respect to any Equity Interest, any Debt or any other
right or Obligation, any such Equity Interest, Debt, right or Obligation that
(a) the issuer has undertaken to redeem at a fixed or determinable date or
dates, whether by operation of a sinking fund or otherwise, or upon the
occurrence of a condition not solely within the control of the issuer or (b) is
redeemable at the option of the holder.

“Reduction Amount” has the meaning specified in Section 2.06(b)(iv).

“Refinancing” has the meaning specified in the Preliminary Statements.

“Register” has the meaning specified in Section 8.07(d).

“Regulation U” means Regulation U of the Board of Governors of the Federal
Reserve System, as in effect from time to time.

“Related Documents” means the Senior Notes Debt Documents, any intercompany
notes issued pursuant to Section 5.02(b)(i)(B) or (ii) and the Convertible Notes
Documents.

Steel Dynamics – Credit Agreement

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

Back to Contents

18

“Required Lenders” means, at any time, Lenders owed or holding at least a
majority in interest of the sum of (a) the aggregate principal amount of the
Advances outstanding at such time, (b) the aggregate Available Amount of all
Letters of Credit outstanding at such time, and (c) the aggregate Unused
Revolving Credit Commitments at such time; provided, however, that if any Lender
shall be a Defaulting Lender at such time, there shall be excluded from the
determination of Required Lenders at such time (A) the aggregate principal
amount of the Advances owing to such Lender (in its capacity as a Lender) and
outstanding at such time, (B) such Lender’s Pro Rata Share of the aggregate
Available Amount of all Letters of Credit outstanding at such time, and (C) the
Unused Revolving Credit Commitment of such Lender at such time. For purposes of
this definition, the aggregate principal amount of Swing Line Advances owing to
the Swing Line Bank and of Letter of Credit Advances owing to any Issuing Bank
and the Available Amount of each Letter of Credit shall be considered to be owed
to the Revolving Credit Lenders ratably in accordance with their respective
Revolving Credit Commitments, except to the extent a Revolving Credit Lender is
a Defaulting Lender.

“Responsible Officer” means any officer of any Loan Party or any of its
Subsidiaries.

“Revolving Credit Advance” has the meaning specified in Section 2.01(a).

“Revolving Credit Borrowing” means a borrowing consisting of simultaneous
Revolving Credit Advances of the same Type made by the Revolving Credit Lenders.

“Revolving Credit Commitment” means, with respect to any Revolving Credit Lender
at any time, the amount set forth opposite such Lender’s name on Schedule I
hereto under the caption “Revolving Credit Commitment” or, if such Lender has
entered into one or more Assignment and Assumptions, set forth for such Lender
in the Register maintained by the Administrative Agent pursuant to Section
8.07(d) as such Lender’s “Revolving Credit Commitment”, as such amount may be
reduced at or prior to such time pursuant to Section 2.05 or increased pursuant
to Section 2.17.

“Revolving Credit Facility” means, at any time, the aggregate amount of the
Revolving Credit Lenders’ Revolving Credit Commitments at such time.

“Revolving Credit Increase Effective Date” has the meaning specified in Section
2.17(d).

“Revolving Credit Lender” means any Lender that has a Revolving Credit
Commitment.

“Secured Cash Management Agreement” means any cash management agreement, deposit
maintenance agreement, credit card services agreement (provided that the
aggregate amount of Debt owing under such credit card services agreements does
not exceed $10 million) or similar agreement between any Loan Party and a bank
which is a Lender Party or an Affiliate of a Lender Party.

“Secured Hedge Agreement” means any Hedge Agreement permitted under Article V
that is entered into by and between any Loan Party and any Hedge Bank.

“Secured Obligations” has the meaning specified in Section 2 of the Security
Agreement.

“Secured Parties” means the Agents, the Lender Parties, the banks that are party
to any Secured Cash Management Agreement and the Hedge Banks.

“Security Agreement” has the meaning specified in Section 3.01(a)(ii).

“Senior Notes” means the Borrower’s 9½% Senior Notes due 2009 issued under the
Indenture.

Steel Dynamics – Credit Agreement

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

Back to Contents

19

“Senior Notes Debt Documents” means the Indenture and all other agreements,
documents, indentures and instruments pursuant to which the Senior Notes are
issued, in each case as amended, to the extent permitted under the Loan
Documents.

“Senior Secured Debt/Consolidated EBITDA Ratio” means, at any date of
determination, the ratio of (a) Consolidated Debt for Borrowed Money of the
Borrower and its Subsidiaries at such date secured by (or for which the holder
of such Debt has an existing right, contingent or otherwise, to be secured by)
any Lien on property (including, without limitation, accounts and contract
rights) of the Borrower or its Subsidiaries, to (b) Consolidated EBITDA of the
Borrower and its Subsidiaries for the most recently ended fiscal quarter of the
Borrower for which financial statements are required to be delivered to the
Lender Parties pursuant to Section 5.03(b) or (c), as the case may be, and the
immediately preceding three fiscal quarters.

“Single Employer Plan” means a single employer plan, as defined in Section
4001(a)(15) of ERISA, that (a) is maintained for employees of any Loan Party or
any ERISA Affiliate and no Person other than the Loan Parties and the ERISA
Affiliates or (b) was so maintained and in respect of which any Loan Party or
any ERISA Affiliate could have liability under Section 4069 of ERISA in the
event such plan has been or were to be terminated.

“Solvent” and “Solvency” mean, with respect to any Person on a particular date,
that on such date (a) the fair value of the property of such Person is greater
than the total amount of liabilities, including, without limitation, contingent
liabilities, of such Person, (b) the present fair salable value of the assets of
such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and
matured, (c) such Person does not intend to, and does not believe that it will,
incur debts or liabilities beyond such Person’s ability to pay such debts and
liabilities as they mature and (d) such Person is not engaged in a business or
transaction, and is not about to engage in a business or transaction, for which
such Person’s property would constitute an unreasonably small capital. The
amount of contingent liabilities at any time shall be computed as the amount
that, in the light of all the facts and circumstances existing at such time,
represents the amount that can reasonably be expected to become an actual or
matured liability.

“Standby Letter of Credit” means any Letter of Credit issued under the Letter of
Credit Facility, other than a Trade Letter of Credit.

“Subject Property” means all property and assets acquired after the Closing Date
that are or are intended to be Collateral, including, without limitation, all
inventory, accounts receivable and related documents and related general
intangibles.

“Subsidiary” of any Person means any corporation, partnership, joint venture,
limited liability company, trust or estate of which (or in which) more than 50%
of (a) the issued and outstanding capital stock having ordinary voting power to
elect a majority of the Board of Directors of such corporation (irrespective of
whether at the time capital stock of any other class or classes of such
corporation shall or might have voting power upon the occurrence of any
contingency), (b) the interest in the capital or profits of such partnership,
joint venture or limited liability company or (c) the beneficial interest in
such trust or estate is at the time directly or indirectly owned or controlled
by such Person, by such Person and one or more of its other Subsidiaries or by
one or more of such Person’s other Subsidiaries; provided, however, there shall
be excluded, in any event, from this definition of Subsidiary, other than for
purposes of (i) the preparation and delivery of financial statements pursuant to
Sections 5.03(b) and (c), and (ii) the calculation of and compliance with the
financial covenants set forth in Sections 5.04(a) through (c), the Excluded
Subsidiaries.

Steel Dynamics – Credit Agreement

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

Back to Contents

20

“Subsidiary Guarantors” means the Subsidiaries of the Borrower listed on
Schedule II hereto and each other Subsidiary of the Borrower that shall be
required to execute and deliver a guaranty pursuant to Section 5.01(j).

“Subsidiary Guaranty” has the meaning specified in Section 3.01(a)(iii).

“Surviving Debt” means the Senior Notes and the other Debt of each Loan Party
and its Subsidiaries outstanding immediately before and after giving effect to
the Transaction and listed on Schedule 4.01(t).

“Swing Line Advance” means an advance made by (a) the Swing Line Bank pursuant
to Section 2.01(b) or (b) any Revolving Credit Lender pursuant to Section
2.02(b).

“Swing Line Bank” means, initially, National City Bank, and thereafter each
Person that shall become the Swing Line Bank hereunder pursuant to Section 8.07.

“Swing Line Borrowing” means a borrowing consisting of a Swing Line Advance made
by the Swing Line Bank pursuant to Section 2.01(b) or the Revolving Credit
Lenders pursuant to Section 2.02(b).

“Swing Line Facility” has the meaning specified in Section 2.01(b).

“Swing Line Reserve” has the meaning specified in Section 2.02(b)(i).

“Taxes” has the meaning specified in Section 2.12(a).

“Termination Date” means the earlier of (a) the date of termination in whole of
the Revolving Credit Commitments, and the Letter of Credit Commitment, pursuant
to Section 2.05 or 6.01 and (b) September 7, 2010.

“Total Debt/Consolidated EBITDA Ratio” means, at any date of determination, the
ratio of Consolidated total Debt for Borrowed Money of the Borrower and its
Subsidiaries as at such date of determination to Consolidated EBITDA of the
Borrower and its Subsidiaries for the most recently ended fiscal quarter of the
Borrower for which financial statements are required to be delivered to the
Lender Parties pursuant to Section 5.03(b) or (c), as the case may be, and the
immediately preceding three fiscal quarters.

“Trade Letter of Credit” means any Letter of Credit that is issued under the
Letter of Credit Facility for the benefit of a supplier of Inventory to the
Borrower or any of its Subsidiaries to effect payment for such Inventory.

“Transaction” means the Refinancing and the other transactions contemplated by
the Transaction Documents.

“Transaction Documents” means, collectively, the Loan Documents and the Related
Documents.

Steel Dynamics – Credit Agreement

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

Back to Contents

21

“Type” refers to the distinction between Advances bearing interest at the Base
Rate and Advances bearing interest at the Eurodollar Rate.

“Unused Revolving Credit Commitment” means, with respect to any Revolving Credit
Lender at any time, (a) such Lender’s Revolving Credit Commitment at such time
minus (b) the sum of (i) the aggregate principal amount of all Revolving Credit
Advances, Swing Line Advances and Letter of Credit Advances made by such Lender
(in its capacity as a Lender) and outstanding at such time plus (ii) such
Lender’s Pro Rata Share of (A) the aggregate Available Amount of all Letters of
Credit outstanding at such time, (B) the aggregate principal amount of all
Letter of Credit Advances made by the Issuing Banks pursuant to Section 2.03(c)
and outstanding at such time and (C) the Swing Line Reserve at such time.

“Voting Interests” means shares of capital stock issued by a corporation, or
equivalent Equity Interests in any other Person, the holders of which are
ordinarily, in the absence of contingencies, entitled to vote for the election
of directors (or persons performing similar functions) of such Person, even if
the right so to vote has been suspended by the happening of such a contingency.

“Welfare Plan” means a welfare plan, as defined in Section 3(1) of ERISA, that
is maintained for employees of any Loan Party or in respect of which any Loan
Party could have liability.

“Withdrawal Liability” has the meaning specified in Part I of Subtitle E of
Title IV of ERISA.

SECTION 1.02. Computation of Time Periods; Other Definitional Provisions. In
this Agreement and the other Loan Documents in the computation of periods of
time from a specified date to a later specified date, the word “from” means
“from and including” and the words “to” and “until” each mean “to but
excluding”. References in the Loan Documents to any agreement or contract “as
amended” shall mean and be a reference to such agreement or contract as amended,
amended and restated, supplemented or otherwise modified from time to time in
accordance with its terms.

SECTION 1.03. Accounting Terms. All accounting terms not specifically defined
herein shall be construed in accordance with generally accepted accounting
principles consistent with those applied in the preparation of the financial
statements referred to in Section 4.01(g) (“GAAP”).

ARTICLE II

AMOUNTS AND TERMS OF THE ADVANCES
AND THE LETTERS OF CREDIT

SECTION 2.01. The Advances and the Letters of Credit. (a) The Revolving Credit
Advances. Each Revolving Credit Lender severally agrees, on the terms and
conditions hereinafter set forth, to make advances (each, a “Revolving Credit
Advance”) to the Borrower from time to time on any Business Day during the
period from the Effective Date until the Termination Date (i) in an amount for
each such Advance not to exceed such Lender’s Unused Revolving Credit Commitment
at such time and (ii) in an aggregate amount for all revolving Credit Advances
outstanding at any one time not to exceed an amount equal to (A) the aggregate
Revolving Credit Commitments of all Revolving Credit Lenders, minus (B) the
aggregate Swing Line Advances, minus (C) the aggregate Available Amount of all
outstanding Letters of Credit, in each case at such time. Each Revolving Credit
Borrowing shall be in an aggregate amount of $5,000,000 or an integral multiple
of $1,000,000 in excess thereof (other than a Borrowing the proceeds of which
shall be used solely to repay or prepay in full outstanding Swing Line Advances
or outstanding Letter of Credit Advances) and shall consist of Revolving Credit
Advances made simultaneously by the Revolving Credit Lenders ratably according
to their Revolving Credit Commitments. Within the limits of each Revolving
Credit Lender’s Unused Revolving Credit Commitment in effect from time to time,
the Borrower may borrow under this Section 2.01(a), prepay pursuant to Section
2.06(a) and reborrow under this Section 2.01(a).

Steel Dynamics – Credit Agreement

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

Back to Contents

22

(b)      The Swing Line Advances. Subject to other arrangements as referred to
in Section 2.02(b)(i), the Borrower may request the Swing Line Bank to make, and
the Swing Line Bank may, if in its sole discretion it elects to do so, make, on
the terms and conditions hereinafter set forth, Swing Line Advances to the
Borrower from time to time on any Business Day during the period from the
Effective Date until the Termination Date (i) in an aggregate amount not to
exceed at any time outstanding $20,000,000 (the “Swing Line Facility”) and (ii)
in an amount not at any time exceeding the amount of the then applicable Swing
Line Reserve. No Swing Line Advance shall be used for the purpose of funding the
payment of principal of any other Swing Line Advance. Each Swing Line Borrowing
shall be in a minimum amount and in multiples as agreed between the Borrower and
the Swing Line Bank and shall be made as a Base Rate Advance. Within the limits
of the Swing Line Facility and within the limits referred to in clause (ii)
above, so long as the Swing Line Bank, in its sole discretion, elects to make
Swing Line Advances, the Borrower may borrow under this Section 2.01(b), repay
pursuant to Section 2.04(d) or prepay pursuant to Section 2.06(a) and reborrow
under this Section 2.01(b).

(c)      The Letters of Credit. Each Issuing Bank severally agrees, on the terms
and conditions hereinafter set forth, to issue (or cause its Affiliate that is a
commercial bank to issue on its behalf) letters of credit for the account of the
Borrower from time to time on any Business Day during the period from the
Effective Date until 60 days before the Termination Date in an aggregate
Available Amount (i) for each such Letter of Credit, together with all other
Letters of Credit not to exceed at any time the Letter of Credit Facility at
such time and (ii) for each such Letter of Credit not to exceed at any time the
lesser of (x) such Issuing Bank’s Letter of Credit Commitment at such time and
(y) the Unused Revolving Credit Commitments of the Revolving Credit Lenders at
such time. It is understood and agreed that the Existing Letters of Credit shall
be deemed to be Letters of Credit issued hereunder for all purposes under this
Agreement and the Loan Documents. No Letter of Credit shall have an expiration
date (including all rights of the Borrower or the beneficiary to require
renewal) later than the earlier of 60 days before the Termination Date and (A)
in the case of a Standby Letter of Credit, one year after the date of issuance
thereof, but may by its terms be renewable annually upon notice (a “Notice of
Renewal”) given to the Issuing Bank and the Administrative Agent on or prior to
any date for notice of renewal set forth in such Letter of Credit but in any
event at least ten Business Days prior to the date of the proposed renewal of
such Standby Letter of Credit and upon fulfillment of the applicable conditions
set forth in Article III unless such Issuing Bank has notified the Borrower
(with a copy to the Administrative Agent) on or prior to the date for notice of
termination set forth in such Letter of Credit but in any event at least ten
Business Days prior to the then effective expiration date of its election not to
renew such Standby Letter of Credit (a “Notice of Termination”; it being
understood and agreed that an Issuing Bank shall not be entitled to issue a
Notice of Termination with respect to such a renewal unless (i) the conditions
precedent to the issuance of Letters of Credit set forth in Section 3.02 shall
not have been fulfilled or waived in accordance herewith, or (ii) a Default
shall have occurred and be continuing, or (iii) pursuant to such renewal the
effective expiration date of such Letter of Credit would occur after the
Termination Date or (iv) such Issuing Bank shall have procured a replacement
Issuing Bank) and (B) in the case of a Trade Letter of Credit, 60 days after the
date of issuance thereof; provided that the terms of each Standby Letter of
Credit that is renewable annually shall (x) require the Issuing Bank that issued
such Standby Letter of Credit to give the beneficiary named in such Standby
Letter of Credit notice of any Notice of Termination, (y) permit such
beneficiary, upon receipt of such notice, to draw under such Standby Letter of
Credit prior to the date such Standby Letter of Credit otherwise would have been
automatically renewed and (z) not permit the expiration date (after giving
effect to any renewal) of such Standby Letter of Credit in any event to be
extended to a date later than 60 days before the Termination Date. If either a
Notice of Renewal is not given by the Borrower or a Notice of Termination is
given by the relevant Issuing Bank pursuant to the immediately preceding
sentence, such Standby Letter of Credit shall expire on the date on which it
otherwise would have been renewed; provided, however, that even in the absence
of receipt of a Notice of Renewal the relevant Issuing Bank may in its
discretion, unless instructed to the contrary by the Administrative Agent or the
Borrower, deem that a Notice of Renewal had been timely delivered and in such
case, a Notice of Renewal shall be deemed to have been so delivered for all
purposes under this Agreement. Each Standby Letter of Credit shall contain a
provision authorizing the Issuing Bank thereunder to deliver to the beneficiary
of such Letter of Credit, upon the occurrence and during the continuance of an
Event of Default, a notice (a “Default Termination Notice”) terminating such
Letter of Credit and giving such beneficiary 15 days to draw such Letter of
Credit. Within the limits of the Letter of Credit Facility, and subject to the
limits referred to above, the Borrower may request the issuance of Letters of
Credit under this Section 2.01(c), repay any Letter of Credit Advances resulting
from drawings thereunder pursuant to Section 2.03(c) and request the issuance of
additional Letters of Credit under this Section 2.01(c).

Steel Dynamics – Credit Agreement

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

Back to Contents

23

SECTION 2.02. Making the Advances. (a) Except as otherwise provided in Section
2.02(b) or 2.03, each Borrowing shall be made on notice, given not later than
11:00 A.M. (New York City time) on the third Business Day prior to the date of
the proposed Borrowing in the case of a Borrowing consisting of Eurodollar Rate
Advances, or the date of the proposed Borrowing in the case of a Borrowing
consisting of Base Rate Advances, by the Borrower to the Administrative Agent,
which shall give to each Appropriate Lender prompt notice thereof by telex or
telecopier. Each such notice of a Borrowing (a “Notice of Borrowing”) shall be
in writing or by telephone, confirmed immediately in writing, or telex or
telecopier, in substantially the form of Exhibit B hereto, specifying therein
the requested (i) date of such Borrowing, (ii) Facility under which such
Borrowing is to be made, (iii) Type of Advances comprising such Borrowing, (iv)
aggregate amount of such Borrowing and (v) in the case of a Borrowing consisting
of Eurodollar Rate Advances, initial Interest Period for each such Advance. Each
Appropriate Lender shall, before (A) 11:00 A.M. (New York City time) on the date
of such Borrowing, in the case of a Borrowing consisting of Eurodollar Rate
Advances or (B) 3:00 P.M. (New York City time) on the date of such Borrowing, in
the case of a Borrowing consisting of Base Rate Advances, make available for the
account of its Applicable Lending Office to the Administrative Agent at the
Administrative Agent’s Account, in same day funds, such Lender’s ratable portion
of such Borrowing in accordance with the respective Commitments under the
applicable Facility of such Lender and the other Appropriate Lenders. After the
Administrative Agent’s receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Administrative Agent will
make such funds available to the Borrower by crediting the Borrower’s Account;
provided, however, that, in the case of any Revolving Credit Borrowing, the
Administrative Agent shall first make a portion of such funds equal to the
aggregate principal amount of any Swing Line Advances and Letter of Credit
Advances made by the Swing Line Bank or any Issuing Bank, as the case may be,
and by any other Revolving Credit Lender and outstanding on the date of such
Revolving Credit Borrowing, plus interest accrued and unpaid thereon to and as
of such date, available to the Swing Line Bank or such Issuing Bank, as the case
may be, and such other Revolving Credit Lenders for repayment of such Swing Line
Advances and Letter of Credit Advances.

Steel Dynamics – Credit Agreement

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

Back to Contents

24

(b)      (i)     Swing Line Borrowings may be made either upon notice as set
forth in Section 2.02(b)(ii) below or pursuant to this Section 2.02(b)(i) on a
daily basis under mechanics mutually agreed to by the Borrower and the Swing
Line Bank, subject in any case to the fulfillment of the applicable conditions
precedent set forth in Article III hereof. The Swing Line Reserve at any time
shall be the amount most recently established by the Borrower by written notice
to the Administrative Agent and the Lead Arrangers confirmed in writing by the
Swing Line Bank as the maximum aggregate principal amount of Swing Line
Borrowings to be outstanding at any one time (the “Swing Line Reserve”),
provided that in no event shall the Swing Line Reserve exceed $20,000,000 at any
time. Swing Line Advances made pursuant to this Section 2.02(b)(i) shall be made
without any requirement for a prior written or telephonic request given to the
Administrative Agent. The Swing Line Bank will notify the Administrative Agent,
on a monthly basis, of any Swing Line Advances so made. The Swing Line Bank
shall not at any time permit the aggregate outstanding amount of the Swing Line
Advances to exceed the then applicable amount of the Swing Line Reserve.

(ii)     Each Swing Line Borrowing, if not made in accordance with Section
2.02(b)(i) above, shall be made on notice, given not later than 2:00 P.M. (New
York City time) on the date of the proposed Swing Line Borrowing, by the
Borrower to the Swing Line Bank and the Administrative Agent. Each such notice
of a Swing Line Borrowing (a “Notice of Swing Line Borrowing”) shall be in
writing or by telephone, confirmed immediately in writing, or telex or
telecopier, specifying therein the requested (i) date of such Borrowing, (ii)
amount of such Borrowing and (iii) maturity of such Borrowing (which maturity
shall be no later than the seventh day after the requested date of such
Borrowing). If, in its sole discretion, it elects to make the requested Swing
Line Advance, the Swing Line Bank will make the amount thereof available to the
Administrative Agent at the Administrative Agent’s Account, in same day funds.
After the Administrative Agent’s receipt of such funds and upon fulfillment of
the applicable conditions set forth in Article III, the Administrative Agent
will make such funds available to the Borrower by crediting the Borrower’s
Account.

(iii)      Upon written demand by the Swing Line Bank, with a copy of such
demand to the Administrative Agent, each other Revolving Credit Lender shall
purchase from the Swing Line Bank, and the Swing Line Bank shall sell and assign
to each such other Revolving Credit Lender, such other Lender’s Pro Rata Share
of such outstanding Swing Line Advance as of the date of such demand, by making
available for the account of its Applicable Lending Office to the Administrative
Agent for the account of the Swing Line Bank, by deposit to the Administrative
Agent’s Account, in same day funds, an amount equal to the portion of the
outstanding principal amount of such Swing Line Advance to be purchased by such
Lender. The Borrower hereby agrees to each such sale and assignment, and all
parties hereto acknowledge and agree that the obligations of such other
Revolving Credit Lenders to purchase outstanding Swing Line Advances is absolute
and unconditional under all circumstances, and shall be enforceable
notwithstanding the occurrence of any Default or Event of Default, the
termination of the Revolving Credit Commitments or any other circumstances. Each
Revolving Credit Lender agrees to purchase its Pro Rata Share of an outstanding
Swing Line Advance on (i) the Business Day on which demand therefor is made by
the Swing Line Bank, provided that notice of such demand is given not later than
11:00 A.M. (New York City time) on such Business Day or (ii) the first Business
Day next succeeding such demand if notice of such demand is given after such
time. Upon any such assignment by the Swing Line Bank to any other Revolving
Credit Lender of a portion of a Swing Line Advance, the Swing Line Bank
represents and warrants to such other Lender that the Swing Line Bank is the
legal and beneficial owner of such interest being assigned by it, but makes no
other representation or warranty and assumes no responsibility with respect to
such Swing Line Advance, the Loan Documents or any Loan Party. If and to the
extent that any Revolving Credit Lender shall not have so made the amount of
such Swing Line Advance available to the Administrative Agent, or if the Swing
Line Lender must disgorge or return any amounts paid by the Borrower in respect
thereof, such Revolving Credit Lender agrees to pay to the Administrative Agent
for the account of the Swing Line Bank forthwith on demand such amount together
with interest thereon, for each day from the date of demand by the Swing Line
Bank until the date such amount is paid to the Administrative Agent, at the Base
Rate. If such Lender shall pay to the Administrative Agent such amount for the
account of the Swing Line Bank on any Business Day, such amount so paid in
respect of principal shall constitute a Swing Line Advance made by such Lender
on such Business Day for purposes of this Agreement, and the outstanding
principal amount of the Swing Line Advance made by the Swing Line Bank shall be
reduced by such amount on such Business Day.

Steel Dynamics – Credit Agreement

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

Back to Contents

25

(c)      Anything in subsection (a) above to the contrary notwithstanding, (i)
the Borrower may not select Eurodollar Rate Advances for any Borrowing if the
aggregate amount of such Borrowing is less than $5,000,000 or if the obligation
of the Appropriate Lenders to make Eurodollar Rate Advances shall then be
suspended pursuant to Section 2.09 or 2.10 and (ii) the Revolving Credit
Advances may not be outstanding as part of more than twelve separate Borrowings.

(d)      Each Notice of Borrowing and Notice of Swing Line Borrowing shall be
irrevocable and binding on the Borrower. In the case of any Borrowing that the
related Notice of Borrowing specifies is to be comprised of Eurodollar Rate
Advances, the Borrower shall indemnify each Appropriate Lender against any loss,
cost or expense incurred by such Lender as a result of any failure to fulfill on
or before the date specified in such Notice of Borrowing for such Borrowing the
applicable conditions set forth in Article III, including, without limitation,
any loss (including loss of anticipated profits), cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by
such Lender to fund the Advance to be made by such Lender as part of such
Borrowing when such Advance, as a result of such failure, is not made on such
date.

(e)      Unless the Administrative Agent shall have received notice from an
Appropriate Lender prior to the date of any Borrowing under a Facility under
which such Lender has a Commitment that such Lender will not make available to
the Administrative Agent such Lender’s ratable portion of such Borrowing, the
Administrative Agent may assume that such Lender has made such portion available
to the Administrative Agent on the date of such Borrowing in accordance with
subsection (a) of this Section 2.02 and the Administrative Agent may, in
reliance upon such assumption, make available to the Borrower on such date a
corresponding amount. If and to the extent that such Lender shall not have so
made such ratable portion available to the Administrative Agent, such Lender and
the Borrower severally agree to repay or pay to the Administrative Agent
forthwith on demand such corresponding amount and to pay interest thereon, for
each day from the date such amount is made available to the Borrower until the
date such amount is repaid or paid to the Administrative Agent, at (i) in the
case of the Borrower, the interest rate applicable at such time under Section
2.07 to Advances comprising such Borrowing and (ii) in the case of such Lender,
the Base Rate. If such Lender shall pay to the Administrative Agent such
corresponding amount, such amount so paid shall constitute such Lender’s Advance
as part of such Borrowing for all purposes.

(f)      The failure of any Lender to make the Advance to be made by it as part
of any Borrowing shall not relieve any other Lender of its obligation, if any,
hereunder to make its Advance on the date of such Borrowing, but no Lender shall
be responsible for the failure of any other Lender to make the Advance to be
made by such other Lender on the date of any Borrowing.

SECTION 2.03. Issuance of and Drawings and Reimbursement Under Letters of
Credit. (a) Request for Issuance. Each Letter of Credit shall be issued upon
notice, given not later than 11:00 A.M. (New York City time) on the fifth
Business Day prior to the date of the proposed issuance of such Letter of
Credit, by the Borrower to any Issuing Bank, which shall give to the
Administrative Agent and each Revolving Credit Lender prompt notice thereof by
telex or telecopier or other writing. Each such notice of issuance of a Letter
of Credit (a “Notice of Issuance”) shall be in writing or by telephone,
confirmed immediately in writing, or telex or telecopier, specifying therein the
requested (i) date of such issuance (which shall be a Business Day), (ii)
Available Amount of such Letter of Credit, (iii) expiration date of such Letter
of Credit, (iv) name and address of the beneficiary of such Letter of Credit and
(v) form of such Letter of Credit, and shall be accompanied by such application
and agreement for letter of credit as such Issuing Bank may specify to the
Borrower for use in connection with such requested Letter of Credit (a “Letter
of Credit Agreement”). If (x) the requested form of such Letter of Credit is
acceptable to such Issuing Bank in its sole discretion and (y) it has not
received notice of objection to such issuance from Lenders holding at least a
majority of the Revolving Credit Commitments, such Issuing Bank will, upon
fulfillment of the applicable conditions set forth in Article III, make such
Letter of Credit available to the Borrower at its office referred to in Section
8.02 or as otherwise agreed with the Borrower in connection with such issuance.
In the event and to the extent that the provisions of any Letter of Credit
Agreement shall conflict with this Agreement, the provisions of this Agreement
shall govern.

Steel Dynamics – Credit Agreement

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

Back to Contents

26

(b)     Letter of Credit Reports. Each Issuing Bank shall furnish (i) to the
Administrative Agent on or about the first Business Day of each week a written
report summarizing issuance and expiration dates of Letters of Credit issued by
such Issuing Bank during the previous week and drawings during such week under
all Letters of Credit, (ii) to each Revolving Credit Lender on or about the
first Business Day of each month a written report summarizing issuance and
expiration dates of Letters of Credit issued by such Issuing Bank during the
preceding month and drawings during such month under all such Letters of Credit
and (iii) to the Administrative Agent and each Revolving Credit Lender on or
about the first Business Day of each calendar quarter a written report setting
forth the average daily aggregate Available Amount during the preceding calendar
quarter of all Letters of Credit issued by such Issuing Bank.

(c)     Drawing and Reimbursement. The payment by any Issuing Bank of a draft
drawn under any Letter of Credit shall constitute for all purposes of this
Agreement the making by such Issuing Bank of a Letter of Credit Advance, which
shall be a Base Rate Advance, in the amount of such draft. Upon written demand
by any Issuing Bank, with a copy of such demand to the Administrative Agent,
each Revolving Credit Lender shall purchase from such Issuing Bank, and such
Issuing Bank shall sell and assign to each such Revolving Credit Lender, such
Lender’s Pro Rata Share of such outstanding Letter of Credit Advance as of the
date of such purchase, by making available for the account of its Applicable
Lending Office to the Administrative Agent for the account of such Issuing Bank,
by deposit to the Administrative Agent’s Account, in same day funds, an amount
equal to the portion of the outstanding principal amount of such Letter of
Credit Advance to be purchased by such Lender. Promptly after receipt thereof,
the Administrative Agent shall transfer such funds to such Issuing Bank. The
Borrower hereby agrees to each such sale and assignment, and all parties hereto
acknowledge and agree that the obligations of such other Revolving Credit
Lenders to purchase outstanding Letter of Credit Advances is absolute and
unconditional under all circumstances, and shall be enforceable notwithstanding
the occurrence of any Default or Event of Default, the termination of the
Revolving Credit Commitments or any other circumstances. Each Revolving Credit
Lender agrees to purchase its Pro Rata Share of an outstanding Letter of Credit
Advance on (i) the Business Day on which demand therefor is made by the
applicable Issuing Bank, provided that notice of such demand is given not later
than 11:00 A.M. (New York City time) on such Business Day, or (ii) the first
Business Day next succeeding such demand if notice of such demand is given after
such time. Upon any such assignment by an Issuing Bank to any Revolving Credit
Lender of a portion of a Letter of Credit Advance, such Issuing Bank represents
and warrants to such other Lender that such Issuing Bank is the legal and
beneficial owner of such interest being assigned by it, free and clear of any
liens, but makes no other representation or warranty and assumes no
responsibility with respect to such Letter of Credit Advance, the Loan Documents
or any Loan Party. If and to the extent that any Revolving Credit Lender shall
not have so made the amount of such Letter of Credit Advance available to the
Administrative Agent, or if an Issuing Bank must disgorge or return any amounts
paid by the Borrower in respect thereof, such Revolving Credit Lender agrees to
pay to the Administrative Agent for the account of such Issuing Bank forthwith
on demand such amount together with interest thereon, for each day from the date
of demand by such Issuing Bank until the date such amount is paid to the
Administrative Agent, at the Federal Funds Rate for its account or the account
of such Issuing Bank, as applicable. If such Lender shall pay to the
Administrative Agent such amount for the account of such Issuing Bank on any
Business Day, such amount so paid in respect of principal shall constitute a
Letter of Credit Advance made by such Lender on such Business Day for purposes
of this Agreement, and the outstanding principal amount of the Letter of Credit
Advance made by such Issuing Bank shall be reduced by such amount on such
Business Day.

Steel Dynamics – Credit Agreement

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

Back to Contents

27

(d)     Failure to Make Letter of Credit Advances. The failure of any Lender to
make the Letter of Credit Advance to be made by it on the date specified in
Section 2.03(c) shall not relieve any other Lender of its obligation hereunder
to make its Letter of Credit Advance on such date, but no Lender shall be
responsible for the failure of any other Lender to make the Letter of Credit
Advance to be made by such other Lender on such date.

SECTION 2.04. Repayment of Advances. (a) Revolving Credit Advances. The Borrower
shall repay to the Administrative Agent for the ratable account of the Revolving
Credit Lenders on the Termination Date the aggregate principal amount of the
Revolving Credit Advances then outstanding.

(b)     Swing Line Advances. The Borrower shall repay to the Administrative
Agent for the account of the Swing Line Bank and each other Revolving Credit
Lender that has made a Swing Line Advance the outstanding principal amount of
each Swing Line Advance made by each of them on the earlier of the maturity date
specified in the applicable Notice of Swing Line Borrowing (which maturity shall
be no later than the seventh day after the requested date of such Borrowing) and
the Termination Date.

(c)     Letter of Credit Advances. (i) The Borrower shall repay to the
Administrative Agent for the account of each Issuing Bank and each other
Revolving Credit Lender that has made a Letter of Credit Advance on the earlier
of demand and the Termination Date the outstanding principal amount of each
Letter of Credit Advance made by each of them.

(ii)     The Obligations of the Borrower under this Agreement, any Letter of
Credit Agreement and any other agreement or instrument relating to any Letter of
Credit, and the obligations of Revolving Credit Lenders to reimburse any Issuing
Bank for Letter of Credit Advances not reimbursed by the Borrower, shall be
unconditional and irrevocable, and shall be paid strictly in accordance with the
terms of this Agreement, such Letter of Credit Agreement and such other
agreement or instrument under all circumstances, including, without limitation,
the following circumstances:

(A)     any lack of validity or enforceability of any Loan Document, any Letter
of Credit Agreement, any Letter of Credit or any other agreement or instrument
relating thereto (all of the foregoing being, collectively, the “L/C Related
Documents”);

(B)     any change in the time, manner or place of payment of, or in any other
term of, all or any of the Obligations of the Borrower in respect of any L/C
Related Document or any other amendment or waiver of or any consent to departure
from all or any of the L/C Related Documents;

(C)     the existence of any claim, set-off, defense or other right that the
Borrower may have at any time against any beneficiary or any transferee of a
Letter of Credit (or any Persons for which any such beneficiary or any such
transferee may be acting), any Issuing Bank or any other Person, whether in
connection with the transactions contemplated by the L/C Related Documents or
any unrelated transaction;

Steel Dynamics – Credit Agreement

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

Back to Contents

28

(D)     any statement or any other document presented under a Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect;

(E)     payment by any Issuing Bank under a Letter of Credit against
presentation of a draft or certificate that does not comply with the terms of
such Letter of Credit;

(F)     any exchange, release or non-perfection of any Collateral or other
collateral, or any release or amendment or waiver of or consent to departure
from the Guaranties or any other guarantee, for all or any of the Obligations of
the Borrower in respect of the L/C Related Documents; or

(G)     any other circumstance or happening whatsoever, whether or not similar
to any of the foregoing, including, without limitation, any other circumstance
that might otherwise constitute a defense available to, or a discharge of, the
Borrower or a Guarantor.

SECTION 2.05. Termination or Reduction of the Commitments. (a) Optional. The
Borrower may, upon at least five Business Days’ notice to the Administrative
Agent, terminate in whole or reduce in part the unused portions of the Letter of
Credit Facility and the Unused Revolving Credit Commitments; provided, however,
that each partial reduction of a Facility (i) shall be in an aggregate amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof and (ii)
shall be made ratably among the Appropriate Lenders in accordance with their
Commitments with respect to such Facility.

(b)     Mandatory. (i) The Letter of Credit Facility shall be permanently
reduced from time to time on the date of each reduction in the Revolving Credit
Facility by the amount, if any, by which the amount of the Letter of Credit
Facility exceeds the Revolving Credit Facility after giving effect to such
reduction of the Revolving Credit Facility.

(ii)     The Swing Line Facility shall be permanently reduced from time to time
on the date of each reduction in the Revolving Credit Facility by the amount, if
any, by which the amount of the Swing Line Facility exceeds the Revolving Credit
Facility after giving effect to such reduction of the Revolving Credit Facility.

(iii)     The Revolving Credit Facility shall be automatically and permanently
reduced, on a pro rata basis, on each date on which prepayment thereof is
required to be made pursuant to Section 2.06(b)(i) in an amount equal to the
applicable Reduction Amount, provided that each such reduction of the Revolving
Credit Facility shall be made ratably among the Revolving Credit Lenders in
accordance with their Revolving Credit Commitments.

SECTION 2.06. Prepayments. (a) Optional. The Borrower may, upon at least one
Business Day’s notice in the case of Base Rate Advances and three Business Days’
notice in the case of Eurodollar Rate Advances, in each case to the
Administrative Agent stating the proposed date and aggregate principal amount of
the prepayment, and if such notice is given the Borrower shall, prepay the
outstanding aggregate principal amount of the Advances comprising part of the
same Borrowing in whole or ratably in part, together with accrued interest to
the date of such prepayment on the aggregate principal amount prepaid; provided,
however, that (x) each partial prepayment shall be in an aggregate principal
amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof and
(y) if any prepayment of a Eurodollar Rate Advance is made on a date other than
the last day of an Interest Period for such Advance, the Borrower shall also pay
any amounts owing pursuant to Section 8.04(c). Each such prepayment shall be
applied, at the option of the Borrower either (i) to the Revolving Credit
Facility or (ii) to the Swing Line Advances or (iii) to the Letter of Credit
Advances. Notwithstanding the foregoing, prepayment of Swing Line Advances held
by the Swing Line Bank shall not require any prior notice.

Steel Dynamics – Credit Agreement

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

Back to Contents

29

(b)     Mandatory. (i) The Borrower shall, on the date of receipt of the Net
Cash Proceeds of any Extraordinary Receipt by the Borrower or any of its
Subsidiaries, prepay an aggregate principal amount of the Advances comprising
part of the same Borrowings and deposit an amount in the L/C Cash Collateral
Account in accordance with clause (iv) below in an amount equal to the amount of
such Net Cash Proceeds. Each such prepayment shall be applied to the Revolving
Credit Facility as set forth in clause (iv) below.

(ii)     The Borrower shall, on each Business Day, prepay an aggregate principal
amount of the Revolving Credit Advances comprising part of the same Borrowings,
the Letter of Credit Advances and the Swing Line Advances and deposit an amount
in the L/C Cash Collateral Account in accordance with clause (iv) below in an
amount equal to the amount by which (A) the sum of the aggregate principal
amount of (x) the Revolving Credit Advances, (y) the Letter of Credit Advances
and (z) the Swing Line Advances then outstanding plus the aggregate Available
Amount of all Letters of Credit then outstanding exceeds (B) the Revolving
Credit Facility on such Business Day.

(iii)     The Borrower shall, on each Business Day, pay to the Administrative
Agent for deposit in the L/C Cash Collateral Account an amount sufficient to
cause the aggregate amount on deposit in the L/C Cash Collateral Account to
equal the amount by which the aggregate Available Amount of all Letters of
Credit then outstanding exceeds the Letter of Credit Facility on such Business
Day.

(iv)     Prepayments of the Revolving Credit Facility made pursuant to clause
(i), (ii) or (iii) above shall be first applied to prepay Letter of Credit
Advances then outstanding until such Advances are paid in full, second applied
to prepay Swing Line Advances then outstanding until such Advances are paid in
full, third applied to prepay Revolving Credit Advances then outstanding
comprising part of the same Borrowings until such Advances are paid in full and
fourth deposited in the L/C Cash Collateral Account to cash collateralize 100%
of the Available Amount of the Letters of Credit then outstanding; and, in the
case of prepayments of the Revolving Credit Facility required pursuant to clause
(i), (ii) or (iii) above, the amount remaining (if any) after the prepayment in
full of the Advances then outstanding and the 100% cash collateralization of the
aggregate Available Amount of Letters of Credit then outstanding (the sum of
such prepayment amounts, cash collateralization amounts and remaining amount
being referred to herein as the “Reduction Amount”) may be retained by the
Borrower and the Revolving Credit Facility shall be permanently reduced as set
forth in Section 2.05(b)(iii). Upon the drawing of any Letter of Credit for
which funds are on deposit in the L/C Cash Collateral Account, such funds shall
be applied to reimburse the Issuing Banks or Revolving Credit Lenders, as
applicable.

(v)     All prepayments under this subsection (b) shall be made together with
accrued interest to the date of such prepayment on the principal amount prepaid.

SECTION 2.07. Interest. (a) Scheduled Interest. The Borrower shall pay interest
on the unpaid principal amount of each Advance owing to each Lender from and
including the date of such Advance until (but excluding) the date such principal
amount shall be paid in full, at the following rates per annum:

(i)     Base Rate Advances. During such periods as such Advance is a Base Rate
Advance, a rate per annum equal at all times to the sum of (A) the Base Rate in
effect from time to time plus (B) the Applicable Margin in effect from time to
time, payable in arrears quarterly on the last day of each March, June,
September and December during such periods and on the date such Base Rate
Advance shall be Converted or paid in full.

Steel Dynamics – Credit Agreement

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

Back to Contents

30

(ii)     Eurodollar Rate Advances. During such periods as such Advance is a
Eurodollar Rate Advance, a rate per annum equal at all times during each
Interest Period for such Advance to the sum of (A) the Eurodollar Rate for such
Interest Period for such Advance plus (B) the Applicable Margin in effect on the
first day of such Interest Period, payable in arrears on the last day of such
Interest Period and, if such Interest Period has a duration of more than three
months, on each day that occurs during such Interest Period every three months
from the first day of such Interest Period and on the date such Eurodollar Rate
Advance shall be Converted or paid in full.

(b)     Default Interest. Upon the occurrence and during the continuance of a
Default, the Borrower shall pay interest on (i) the unpaid principal amount of
each Advance owing to each Lender, payable in arrears on the dates referred to
in clause (a)(i) or (a)(ii) above and on demand, at a rate per annum equal at
all times to 2% per annum above the rate per annum required to be paid on such
Advance pursuant to clause (a)(i) or (a)(ii) above and (ii) to the fullest
extent permitted by law, the amount of any interest, fee or other amount payable
under the Loan Documents that is not paid when due, from the date such amount
shall be due until such amount shall be paid in full, payable in arrears on the
date such amount shall be paid in full and on demand, at a rate per annum equal
at all times to 2% per annum above the rate per annum required to be paid, in
the case of interest, on the Type of Advance on which such interest has accrued
pursuant to clause (a)(i) or (a)(ii) above and, in all other cases, on Base Rate
Advances pursuant to clause (a)(i) above.

(c)     Notice of Interest Period and Interest Rate. Promptly after receipt of a
Notice of Borrowing pursuant to Section 2.02(a), a notice of Conversion pursuant
to Section 2.09 or a notice of selection of an Interest Period pursuant to the
terms of the definition of “Interest Period”, the Administrative Agent shall
give notice to the Borrower and each Appropriate Lender of the applicable
Interest Period and the applicable interest rate determined by the
Administrative Agent for purposes of clause (a)(i) or (a)(ii) above.

SECTION 2.08. Fees. (a) Commitment Fee. The Borrower shall pay to the
Administrative Agent for the account of the Revolving Credit Lenders a
commitment fee, from the Effective Date in the case of each Initial Lender (and
from the effective date specified in the Assignment and Assumption pursuant to
which it became a Lender in the case of each other Lender) until the Termination
Date, payable in arrears quarterly on the last day of each March, June,
September and December, commencing September 30, 2005, and on the Termination
Date, at the rate of (i) on the Closing Date, 0.20% per annum and (ii)
thereafter, at a rate per annum equal to the Applicable Percentage, in each case
on the average daily portion of the sum of each Revolving Credit Lender’s Unused
Revolving Credit Commitment plus its Pro Rata Share of the Swing Line Reserve
during such period; provided, however, that any commitment fee accrued with
respect to any of the Commitments of a Defaulting Lender during the period prior
to the time such Lender became a Defaulting Lender and unpaid at such time shall
not be payable by the Borrower so long as such Lender shall be a Defaulting
Lender except to the extent that such commitment fee shall otherwise have been
due and payable by the Borrower prior to such time; and provided further that no
commitment fee shall accrue on any of the Commitments of a Defaulting Lender so
long as such Lender shall be a Defaulting Lender.

(b)     Letter of Credit Fees, Etc. (i) The Borrower shall pay to the
Administrative Agent for the account of each Revolving Credit Lender a
commission, payable in arrears quarterly on the last day of each March, June,
September and December, commencing September 30, 2005, and on the Termination
Date, on such Lender’s Pro Rata Share of the average daily aggregate Available
Amount during such quarter of Letters of Credit outstanding from time to time at
the rate equal to the Applicable Margin for Eurodollar Loans.

Steel Dynamics – Credit Agreement

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

Back to Contents

31

(ii)     The Borrower shall pay to each Issuing Bank, for its own account, (A)
an issuance fee for each Letter of Credit issued by such Issuing Bank in an
amount as the Borrower and such Issuing Bank may agree, payable on the date of
issuance and on renewal of such Letter of Credit, and (B) such other
commissions, fronting fees, transfer fees and other fees and charges in
connection with the issuance or administration of each Letter of Credit issued
by such Issuing Bank as the Borrower and such Issuing Bank shall agree.

(c)      Agents’ Fees. The Borrower shall pay to each Agent and each Lead
Arranger for its own account such fees as may from time to time be agreed
between the Borrower and such Agent or such Lead Arranger, as the case may be.

SECTION 2.09. Conversion of Advances.  (a)  Optional. The Borrower may on any
Business Day, upon notice given to the Administrative Agent not later than 11:00
A.M. (New York City time) on the third Business Day prior to the date of the
proposed Conversion and subject to the provisions of Sections 2.07 and 2.10,
Convert all or any portion of the Advances of one Type comprising the same
Borrowing into Advances of the other Type; provided, however, that any
Conversion of Eurodollar Rate Advances into Base Rate Advances shall be made
only on the last day of an Interest Period for such Eurodollar Rate Advances,
any Conversion of Base Rate Advances into Eurodollar Rate Advances shall be in
an amount not less than the minimum amount specified in Section 2.02(c), no
Conversion of any Advances shall result in more separate Borrowings than
permitted under Section 2.02(c) and each Conversion of Advances comprising part
of the same Borrowing under any Facility shall be made ratably among the
Appropriate Lenders in accordance with their Commitments under such Facility.
Each such notice of Conversion shall, within the restrictions specified above,
specify (i) the date of such Conversion, (ii) the Advances to be Converted and
(iii) if such Conversion is into Eurodollar Rate Advances, the duration of the
initial Interest Period for such Advances. Each notice of Conversion shall be
irrevocable and binding on the Borrower.

(b)      Mandatory.  (i)  On the date on which the aggregate unpaid principal
amount of Eurodollar Rate Advances comprising any Borrowing shall be reduced, by
payment or prepayment or otherwise, to less than $5,000,000, such Advances shall
automatically Convert into Base Rate Advances.

(ii)      If the Borrower shall fail to select the duration of any Interest
Period for any Eurodollar Rate Advances in accordance with the provisions
contained in the definition of “Interest Period” in Section 1.01, the
Administrative Agent will forthwith so notify the Borrower and the Appropriate
Lenders, whereupon each such Eurodollar Rate Advance will automatically, on the
last day of the then existing Interest Period therefor, Convert into a Base Rate
Advance.

(iii)      Upon the occurrence and during the continuance of any Default, (x)
each Eurodollar Rate Advance will automatically, on the last day of the then
existing Interest Period therefor, Convert into a Base Rate Advance and (y) the
obligation of the Lenders to make, or to Convert Advances into, Eurodollar Rate
Advances shall be suspended.

SECTION 2.10. Increased Costs, Etc.  (a)  If, due to either (i) the introduction
of or any change in or in the interpretation of any law or regulation or (ii)
the compliance with any guideline or request from any central bank or other
governmental authority (whether or not having the force of law), there shall be
any increase in the cost to any Lender Party of agreeing to make or of making,
funding or maintaining Eurodollar Rate Advances or of agreeing to issue or of
issuing or maintaining or participating in Letters of Credit or of agreeing to
make or of making or maintaining Letter of Credit Advances (excluding, for
purposes of this Section 2.10, any such increased costs resulting from (x) Taxes
or Other Taxes (as to which Section 2.12 shall govern) and (y) changes in the
basis of taxation of overall net income or overall gross income by the United
States or by the foreign jurisdiction or state under the laws of which such
Lender Party is organized or has its Applicable Lending Office or any political
subdivision thereof), then the Borrower shall from time to time, upon demand by
such Lender Party (with a copy of such demand to the Administrative Agent), pay
to the Administrative Agent for the account of such Lender Party additional
amounts sufficient to compensate such Lender Party for such increased cost;
provided, however, that a Lender Party claiming additional amounts under this
Section 2.10(a) agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to designate a different
Applicable Lending Office if the making of such a designation would avoid the
need for, or reduce the amount of, such increased cost that may thereafter
accrue and would not, in the reasonable judgment of such Lender Party, be
otherwise disadvantageous to such Lender Party. A notice as to the amount of
such increased cost, submitted to the Borrower by such Lender Party, shall be
conclusive and binding for all purposes, absent manifest error.

Steel Dynamics – Credit Agreement

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

Back to Contents

32

(b)      If, due to either  (i)  the introduction of or any change in or in the
interpretation of any law or regulation or (ii) the compliance with any
guideline or request from any central bank or other governmental authority
(whether or not having the force of law), there shall be any increase in the
amount of capital required or expected to be maintained by any Lender Party or
any corporation controlling such Lender Party as a result of or based upon the
existence of such Lender Party’s commitment to lend or to issue or participate
in Letters of Credit hereunder and other commitments of such type or the
issuance or maintenance of or participation in the Letters of Credit (or similar
contingent obligations), then, upon demand by such Lender Party or such
corporation (with a copy of such demand to the Administrative Agent), the
Borrower shall pay to the Administrative Agent for the account of such Lender
Party, from time to time as specified by such Lender Party, additional amounts
sufficient to compensate such Lender Party in the light of such circumstances,
to the extent that such Lender Party reasonably determines such increase in
capital to be allocable to the existence of such Lender Party’s commitment to
lend or to issue or participate in Letters of Credit hereunder or to the
issuance or maintenance of or participation in any Letters of Credit. A notice
as to such amounts submitted to the Borrower by such Lender Party shall be
conclusive and binding for all purposes, absent manifest error.

(c)      If, with respect to any Eurodollar Rate Advances under any Facility,
the Required Lenders notify the Administrative Agent that the Eurodollar Rate
for any Interest Period for such Advances will not adequately reflect the cost
to such Lenders of making, funding or maintaining their Eurodollar Rate Advances
for such Interest Period, the Administrative Agent shall forthwith so notify the
Borrower and the Appropriate Lenders, whereupon (i) each such Eurodollar Rate
Advance under such Facility will automatically, on the last day of the then
existing Interest Period therefor, Convert into a Base Rate Advance and (ii) the
obligation of the Appropriate Lenders to make, or to Convert Advances into,
Eurodollar Rate Advances shall be suspended until the Administrative Agent shall
notify the Borrower that such Lenders have determined that the circumstances
causing such suspension no longer exist.

(d)      Notwithstanding any other provision of this Agreement, if the
introduction of or any change in or in the interpretation of any law or
regulation shall make it unlawful, or any central bank or other governmental
authority shall assert that it is unlawful, for any Lender or its Eurodollar
Lending Office to perform its obligations hereunder to make Eurodollar Rate
Advances or to continue to fund or maintain Eurodollar Rate Advances hereunder,
then, on notice thereof and demand therefor by such Lender to the Borrower
through the Administrative Agent, (i) each Eurodollar Rate Advance under each
Facility under which such Lender has a Commitment will automatically, upon such
demand, Convert into a Base Rate Advance and (ii) the obligation of the
Appropriate Lenders to make, or to Convert Advances into, Eurodollar Rate
Advances shall be suspended until the Administrative Agent shall notify the
Borrower that such Lender has determined that the circumstances causing such
suspension no longer exist; provided, however, that, before making any such
demand, such Lender agrees to use reasonable efforts (consistent with its
internal policy and legal and regulatory restrictions) to designate a different
Eurodollar Lending Office if the making of such a designation would allow such
Lender or its Eurodollar Lending Office to continue to perform its obligations
to make Eurodollar Rate Advances or to continue to fund or maintain Eurodollar
Rate Advances and would not, in the reasonable judgment of such Lender, be
otherwise disadvantageous to such Lender.

Steel Dynamics – Credit Agreement

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

Back to Contents

33

SECTION 2.11. Payments and Computations. (a) The Borrower shall make each
payment hereunder and under the Notes, irrespective of any right of counterclaim
or set-off, not later than 11:00 A.M. (New York City time) on the day when due
in U.S. dollars to the Administrative Agent at the Administrative Agent’s
Account in same day funds, with payments being received by the Administrative
Agent after such time being deemed to have been received on the next succeeding
Business Day. The Administrative Agent will promptly thereafter cause like funds
to be distributed (i) if such payment by the Borrower is in respect of
principal, interest, commitment fees or any other Obligation then payable
hereunder and under the Notes to more than one Lender Party, to such Lender
Parties for the account of their respective Applicable Lending Offices ratably
in accordance with the amounts of such respective Obligations then payable to
such Lender Parties and (ii) if such payment by the Borrower is in respect of
any Obligation then payable hereunder to one Lender Party, to such Lender Party
for the account of its Applicable Lending Office, in each case to be applied in
accordance with the terms of this Agreement. Upon its acceptance of an
Assignment and Assumption and recording of the information contained therein in
the Register pursuant to Section 8.07(d), from and after the effective date of
such Assignment and Assumption, the Administrative Agent shall make all payments
hereunder and under the Notes in respect of the interest assigned thereby to the
Lender Party assignee thereunder, and the parties to such Assignment and
Assumption shall make all appropriate adjustments in such payments for periods
prior to such effective date directly between themselves.

(b)      The Borrower hereby authorizes each Lender Party and each of its
Affiliates, if and to the extent payment owed to such Lender Party is not made
when due hereunder or, in the case of a Lender, under the Note held by such
Lender, to charge from time to time, to the fullest extent permitted by law,
against any or all of the Borrower’s accounts with such Lender Party or such
Affiliate any amount so due.

(c)      All computations of interest based on the Prime Rate shall be made by
the Administrative Agent on the basis of a year of 365 or 366 days, as the case
may be, and all computations of interest based on the Eurodollar Rate or the
Federal Funds Rate and of fees and Letter of Credit commissions shall be made by
the Administrative Agent on the basis of a year of 360 days, in each case for
the actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest, fees or commissions are
payable. Each determination by the Administrative Agent of an interest rate, fee
or commission hereunder shall be conclusive and binding for all purposes, absent
manifest error.

(d)      Whenever any payment hereunder or under the Notes shall be stated to be
due on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or commitment fee, as the
case may be; provided, however, that, if such extension would cause payment of
interest on or principal of Eurodollar Rate Advances to be made in the next
following calendar month, such payment shall be made on the next preceding
Business Day.

(e)      Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to any Lender Party
hereunder that the Borrower will not make such payment in full, the
Administrative Agent may assume that the Borrower has made such payment in full
to the Administrative Agent on such date and the Administrative Agent may, in
reliance upon such assumption, cause to be distributed to each such Lender Party
on such due date an amount equal to the amount then due such Lender Party. If
and to the extent the Borrower shall not have so made such payment in full to
the Administrative Agent, each such Lender Party shall repay to the
Administrative Agent forthwith on demand such amount distributed to such Lender
Party together with interest thereon, for each day from the date such amount is
distributed to such Lender Party until the date such Lender Party repays such
amount to the Administrative Agent, at the Base Rate.

Steel Dynamics – Credit Agreement

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

Back to Contents

34

(f)      If the Administrative Agent receives funds for application to the
Obligations under the Loan Documents under circumstances for which the Loan
Documents do not specify the Advances or the Facility to which, or the manner in
which, such funds are to be applied, the Administrative Agent may, but shall not
be obligated to, elect to distribute such funds to each Lender Party ratably in
accordance with such Lender Party’s proportionate share of the principal amount
of all outstanding Advances and the Available Amount of all Letters of Credit
then outstanding, in repayment or prepayment of such of the outstanding Advances
or other Obligations owed to such Lender Party, and for application to such
principal installments, as the Administrative Agent shall direct.

SECTION 2.12. Taxes.  (a)  Any and all payments by the Borrower to or for the
account of any Lender Party or any Agent hereunder or under any Notes shall be
made free and clear of and without deduction for any and all present or future
taxes, levies, imposts, deductions, charges or withholdings, and all liabilities
with respect thereto, excluding, in the case of each Lender Party and each
Agent, taxes that are imposed on its overall net income by the United States and
taxes that are imposed on its overall net income (and franchise taxes imposed in
lieu thereof) by the state or foreign jurisdiction under the laws of which such
Lender Party or such Agent, as the case may be, is organized or any political
subdivision thereof and, in the case of each Lender Party, taxes that are
imposed on its overall net income (and franchise taxes imposed in lieu thereof)
by the state or foreign jurisdiction of such Lender Party’s Applicable Lending
Office or any political subdivision thereof (all such non-excluded taxes,
levies, imposts, deductions, charges, withholdings and liabilities in respect of
payments hereunder or under the Notes being hereinafter referred to as “Taxes”).
If the Borrower shall be required by law to deduct any Taxes from or in respect
of any sum payable hereunder or under any Note to any Lender Party or any Agent,
(i) the sum payable by the Borrower shall be increased as may be necessary so
that after the Borrower and the Administrative Agent have made all required
deductions (including deductions applicable to additional sums payable under
this Section 2.12) such Lender Party or such Agent, as the case may be, receives
an amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower shall make all such deductions and (iii) the Borrower
shall pay the full amount deducted to the relevant taxation authority or other
authority in accordance with applicable law.

(b)      In addition, the Borrower shall pay any present or future stamp,
documentary, excise, property or similar taxes, charges or levies that arise
from any payment made hereunder or under any Notes or from the execution,
delivery or registration of, performance under, or otherwise with respect to,
this Agreement, any Notes or any other Loan Documents or the transfer of any
Notes (hereinafter referred to as “Other Taxes”).

(c)      The Borrower shall indemnify each Lender Party and each Agent for and
hold them harmless against the full amount of Taxes and Other Taxes, and for the
full amount of taxes of any kind imposed or assessed by any jurisdiction on
amounts payable under this Section 2.12, imposed on or paid by such Lender Party
or such Agent (as the case may be) and any liability (including penalties,
additions to tax, interest and expenses) arising therefrom or with respect
thereto. This indemnification shall be made within 30 days from the date such
Lender Party or such Agent (as the case may be) makes written demand therefor.

Steel Dynamics – Credit Agreement

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

Back to Contents

35

(d)      Within 30 days after the date of any payment of Taxes, the Borrower
shall furnish to the Administrative Agent, at its address referred to in Section
8.02, the original or a certified copy of a receipt evidencing such payment, to
the extent such a receipt is issued therefor, or other written proof of payment
thereof that is reasonably satisfactory to the Administrative Agent. In the case
of any payment hereunder or under the Notes by or on behalf of the Borrower
through an account or branch outside the United States or by or on behalf of the
Borrower by a payor that is not a United States person, if the Borrower
determines that no Taxes are payable in respect thereof, the Borrower shall
furnish, or shall cause such payor to furnish, to the Administrative Agent, at
such address, an opinion of counsel acceptable to the Administrative Agent
stating that such payment is exempt from Taxes. For purposes of subsections (d)
and (e) of this Section 2.12, the terms “United States” and “United States
person” shall have the meanings specified in Section 7701 of the Internal
Revenue Code.

(e)      Each Lender Party organized under the laws of a jurisdiction outside
the United States shall, on or prior to the date of its execution and delivery
of this Agreement in the case of each Initial Lender Party and on the date of
the Assignment and Acceptance pursuant to which it becomes a Lender Party in the
case of each other Lender Party, and from time to time thereafter as reasonably
requested in writing by the Borrower (but only so long thereafter as such Lender
Party remains lawfully able to do so), provide each of the Administrative Agent
and the Borrower with two original Internal Revenue Service Forms W-8ECI (or
successor forms), as appropriate, or in the case of a Lender Party that is
claiming a reduced rate of United States withholding tax because of a tax treaty
or that has certified in writing to the Administrative Agent that it is not (i)
a “bank” as defined in Section 881(c)(3)(A) of the Internal Revenue Code, (ii) a
10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the
Internal Revenue Code) of the Borrower or (iii) a controlled foreign corporation
related to the Borrower (within the meaning of Section 864(d)(4) of the Internal
Revenue Code), Internal Revenue Service Form W-8BEN or any successor or other
form prescribed by the Internal Revenue Service, certifying that such Lender
Party is exempt from or entitled to a reduced rate of United States withholding
tax on payments pursuant to this Agreement or any Notes or, in the case of a
Lender Party that has certified that it is not a “bank” as described above,
certifying that such Lender Party is a foreign corporation, partnership, estate
or trust. If the forms provided by a Lender Party at the time such Lender Party
first becomes a party to this Agreement indicate a United States interest
withholding tax rate in excess of zero, withholding tax at such rate shall be
considered excluded from Taxes unless and until such Lender Party provides the
appropriate forms certifying that a lesser rate applies, whereupon withholding
tax at such lesser rate only shall be considered excluded from Taxes for periods
governed by such forms; provided, however, that if, at the effective date of the
Assignment and Assumption pursuant to which a Lender Party becomes a party to
this Agreement, the Lender Party assignor was entitled to payments under
subsection (a) of this Section 2.12 in respect of United States withholding tax
with respect to interest paid at such date, then, to such extent, the term Taxes
shall include (in addition to withholding taxes that may be imposed in the
future or other amounts otherwise includable in Taxes) United States withholding
tax, if any, applicable with respect to the Lender Party assignee on such date.
If any form or document referred to in this subsection (e) requires the
disclosure of information, other than information necessary to compute the tax
payable and information required on the date hereof by Internal Revenue Service
Forms W-8BEN or W-8ECI or the related certificate described above, that the
applicable Lender Party reasonably considers to be confidential, such Lender
Party shall give notice thereof to the Borrower and shall not be obligated to
include in such form or document such confidential information.

(f)      For any period with respect to which a Lender Party has failed to
provide the Borrower with the appropriate form, certificate or other document
described in subsection (e) above (other than if such failure is due to a change
in law, or in the interpretation or application thereof, occurring after the
date on which a form, certificate or other document originally was required to
be provided or if such form, certificate or other document otherwise is not
required under subsection (e) above), such Lender Party shall not be entitled to
indemnification under subsection (a) or (c) of this Section 2.12 with respect to
Taxes imposed by the United States by reason of such failure; provided, however,
that should a Lender Party become subject to Taxes because of its failure to
deliver a form, certificate or other document required hereunder, the Borrower
shall take such steps as such Lender Party shall reasonably request to assist
such Lender Party to recover such Taxes.

Steel Dynamics – Credit Agreement

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

Back to Contents

36

(g)     Any Lender Party claiming any additional amounts payable pursuant to
this Section 2.12 agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to change the jurisdiction of its
Applicable Lending Office if the making of such a change would avoid the need
for, or reduce the amount of, any such additional amounts that may thereafter
accrue and would not, in the reasonable judgment of such Lender Party, be
otherwise disadvantageous to such Lender Party. Nothing in this Section 2.12 or
otherwise in this Agreement shall require any Lender Party to disclose to the
Borrower any of its tax returns (or any other information that it deems to be
confidential or proprietary).

(h)      Without prejudice to the survival of any other agreement contained
herein, the agreements and obligations contained in this Section 2.12 shall
survive the payment in full of the principal of and interest on all Notes and
Advances made hereunder.

SECTION 2.13. Sharing of Payments, Etc. If any Lender Party shall obtain at any
time any payment (whether voluntary, involuntary, through the exercise of any
right of set-off, or otherwise, other than as a result of an assignment pursuant
to Section 8.07) (a) on account of Obligations due and payable to such Lender
Party hereunder and under the Notes at such time in excess of its ratable share
(according to the proportion of (i) the amount of such Obligations due and
payable to such Lender Party at such time to (ii) the aggregate amount of the
Obligations due and payable to all Lender Parties hereunder and under the Notes
at such time) of payments on account of the Obligations due and payable to all
Lender Parties hereunder and under the Notes at such time obtained by all the
Lender Parties at such time or (b) on account of Obligations owing (but not due
and payable) to such Lender Party hereunder and under the Notes at such time in
excess of its ratable share (according to the proportion of (i) the amount of
such Obligations owing to such Lender Party at such time to (ii) the aggregate
amount of the Obligations owing (but not due and payable) to all Lender Parties
hereunder and under the Notes at such time) of payments on account of the
Obligations owing (but not due and payable) to all Lender Parties hereunder and
under the Notes at such time obtained by all of the Lender Parties at such time,
such Lender Party shall forthwith purchase from the other Lender Parties such
interests or participating interests in the Obligations due and payable or owing
to them, as the case may be, as shall be necessary to cause such purchasing
Lender Party to share the excess payment ratably with each of them; provided,
however, that if all or any portion of such excess payment is thereafter
recovered from such purchasing Lender Party, such purchase from each other
Lender Party shall be rescinded and such other Lender Party shall repay to the
purchasing Lender Party the purchase price to the extent of such Lender Party’s
ratable share (according to the proportion of (i) the purchase price paid to
such Lender Party to (ii) the aggregate purchase price paid to all Lender
Parties) of such recovery together with an amount equal to such Lender Party’s
ratable share (according to the proportion of (i) the amount of such other
Lender Party’s required repayment to (ii) the total amount so recovered from the
purchasing Lender Party) of any interest or other amount paid or payable by the
purchasing Lender Party in respect of the total amount so recovered; provided
further that, so long as the Obligations under the Loan Documents shall not have
been accelerated, any excess payment received by any Appropriate Lender shall be
shared on a pro rata basis only with other Appropriate Lenders. The Borrower
agrees that any Lender Party so purchasing an interest or participating interest
from another Lender Party pursuant to this Section 2.13 may, to the fullest
extent permitted by law, exercise all its rights of payment (including the right
of set-off) with respect to such interest or participating interest, as the case
may be, as fully as if such Lender Party were the direct creditor of the
Borrower in the amount of such interest or participating interest, as the case
may be.

Steel Dynamics – Credit Agreement

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

Back to Contents

37

SECTION 2.14. Use of Proceeds. The proceeds of the Advances and issuances of
Letters of Credit shall be available (and the Borrower agrees that it shall use
such proceeds and Letters of Credit), (a) for the Refinancing and to pay
transaction fees and expenses incurred in connection therewith and (b) to
provide working capital for the Loan Parties and for other general corporate
purposes, including, without limitation, for purposes of making capital
expenditures and acquisitions and other Investments permitted under Section
5.02(f).

SECTION 2.15. Defaulting Lenders. (a) In the event that, at any one time, (i)
any Lender Party shall be a Defaulting Lender, (ii) such Defaulting Lender shall
owe a Defaulted Amount to any Agent or any of the other Lender Parties and (iii)
the Borrower shall make any payment hereunder or under any other Loan Document
to the Administrative Agent for the account of such Defaulting Lender, then the
Administrative Agent may, on its behalf or on behalf of such other Agents or
such other Lender Parties and to the fullest extent permitted by applicable law,
apply at such time the amount so paid by the Borrower to or for the account of
such Defaulting Lender to the payment of each such Defaulted Amount to the
extent required to pay such Defaulted Amount. In the event that the
Administrative Agent shall so apply any such amount to the payment of any such
Defaulted Amount on any date, the amount so applied by the Administrative Agent
shall constitute for all purposes of this Agreement and the other Loan Documents
payment, to such extent, of such Defaulted Amount on such date. Any such amount
so applied by the Administrative Agent shall be retained by the Administrative
Agent or distributed by the Administrative Agent to such other Agents or such
other Lender Parties, ratably in accordance with the respective portions of such
Defaulted Amounts payable at such time to the Administrative Agent, such other
Agents and such other Lender Parties and, if the amount of such payment made by
the Borrower shall at such time be insufficient to pay all Defaulted Amounts
owing at such time to the Administrative Agent, such other Agents and such other
Lender Parties, in the following order of priority:

(i)     first, to the Agents for any Defaulted Amounts then owing to them, in
their capacities as such, ratably in accordance with such respective Defaulted
Amounts then owing to the Agents;

(ii)     second, to the Issuing Banks and the Swing Line Bank for any Defaulted
Amounts then owing to them, in their capacities as such, ratably in accordance
with such respective Defaulted Amounts then owing to the Issuing Banks and the
Swing Line Bank; and

(iii)     third, to any other Lender Parties for any Defaulted Amounts then
owing to such other Lender Parties, ratably in accordance with such respective
Defaulted Amounts then owing to such other Lender Parties.

Any portion of such amount paid by the Borrower for the account of such
Defaulting Lender remaining, after giving effect to the amount applied by the
Administrative Agent pursuant to this subsection (a), shall be applied by the
Administrative Agent as specified in subsection (b) of this Section 2.15.

(b)      In the event that, at any one time, (i) any Lender Party shall be a
Defaulting Lender, (ii) such Defaulting Lender shall not owe a Defaulted Advance
or a Defaulted Amount and (iii) the Borrower, any Agent or any other Lender
Party shall be required to pay or distribute any amount hereunder or under any
other Loan Document to or for the account of such Defaulting Lender, then the
Borrower or such Agent or such other Lender Party shall pay such amount to the
Administrative Agent to be held by the Administrative Agent, to the fullest
extent permitted by applicable law, in escrow or the Administrative Agent shall,
to the fullest extent permitted by applicable law, hold in escrow such amount
otherwise held by it. Any funds held by the Administrative Agent in escrow under
this subsection (b) shall be deposited by the Administrative Agent in such
account as the Administrative Agent shall designate in writing to the Borrower
and the Defaulting Lender, in the name and under the control of the
Administrative Agent, but subject to the provisions of this subsection (b). The
terms applicable to such account, including the rate of interest payable with
respect to the credit balance of such account from time to time, shall be the
Administrative Agent’s standard terms applicable to escrow accounts maintained
with it. Any interest credited to such account from time to time shall be held
by the Administrative Agent in escrow under, and applied by the Administrative
Agent from time to time in accordance with the provisions of, this subsection
(b). The Administrative Agent shall, to the fullest extent permitted by
applicable law, apply all funds so held in escrow from time to time to the
extent necessary to make any Advances required to be made by such Defaulting
Lender and to pay any amount payable by such Defaulting Lender hereunder and
under the other Loan Documents to the Administrative Agent or any other Lender
Party, as and when such Advances or amounts are required to be made or paid and,
if the amount so held in escrow shall at any time be insufficient to make and
pay all such Advances and amounts required to be made or paid at such time, in
the following order of priority:

Steel Dynamics – Credit Agreement

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

Back to Contents

38

(i)      first, to the Agents for any amounts then due and payable by such
Defaulting Lender to them hereunder, in their capacities as such, ratably in
accordance with such respective amounts then due and payable to the Agents;

(ii)      second, to the Issuing Banks and the Swing Line Bank for any amounts
then due and payable to them hereunder, in their capacities as such, by such
Defaulting Lender, ratably in accordance with such respective amounts then due
and payable to the Issuing Banks and the Swing Line Bank;

(iii)      third, to any other Lender Parties for any amount then due and
payable by such Defaulting Lender to such other Lender Parties hereunder,
ratably in accordance with such respective amounts then due and payable to such
other Lender Parties; and

(iv)      fourth, to the Borrower for any Advance then required to be made by
such Defaulting Lender pursuant to a Commitment of such Defaulting Lender.

In the event that any Lender Party that is a Defaulting Lender shall, at any
time, cease to be a Defaulting Lender, any funds held by the Administrative
Agent in escrow at such time with respect to such Lender Party shall be
distributed by the Administrative Agent to such Lender Party and applied by such
Lender Party to the Obligations owing to such Lender Party at such time under
this Agreement and the other Loan Documents ratably in accordance with the
respective amounts of such Obligations outstanding at such time.

(c)      The rights and remedies against a Defaulting Lender under this Section
2.15 are in addition to other rights and remedies that the Borrower may have
against such Defaulting Lender with respect to any Defaulted Advance and that
any Agent or any Lender Party may have against such Defaulting Lender with
respect to any Defaulted Amount.

SECTION 2.16. Evidence of Debt. (a) Each Lender Party shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower to such Lender resulting from each Advance owing to
such Lender Party from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time hereunder. The
Borrower agrees that upon notice by any Lender Party to the Borrower (with a
copy of such notice to the Administrative Agent) to the effect that a promissory
note or other evidence of indebtedness is required or appropriate in order for
such Lender Party to evidence (whether for purposes of pledge, enforcement or
otherwise) the Advances owing to, or to be made by, such Lender Party, the
Borrower shall promptly execute and deliver to such Lender Party, with a copy to
the Administrative Agent, a Note substantially the form of Exhibit A hereto,
respectively, payable to the order of such Lender Party in a principal amount
equal to the Revolving Credit Commitment of such Lender Party. All references to
Notes in the Loan Documents shall mean Notes, if any, to the extent issued
hereunder.

Steel Dynamics – Credit Agreement

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

Back to Contents

39

(b)      The Register maintained by the Administrative Agent pursuant to Section
8.07(d) shall include an account for each Lender Party, in which account shall
be recorded (i) the date and amount of each Borrowing made hereunder, the Type
of Advances comprising such Borrowing and, if appropriate, the Interest Period
applicable thereto, (ii) the terms of each Assignment and Assumption delivered
to and accepted by it, (iii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender Party
hereunder, and (iv) the amount of any sum received by the Administrative Agent
from the Borrower hereunder and each Lender Party’s share thereof.

(c)      Entries made in good faith by the Administrative Agent in the Register
pursuant to subsection (b) above, and by each Lender Party in its account or
accounts pursuant to subsection (a) above, shall be prima facie evidence of the
amount of principal and interest due and payable or to become due and payable
from the Borrower to, in the case of the Register, each Lender Party and, in the
case of such account or accounts, such Lender Party, under this Agreement,
absent manifest error; provided, however, that the failure of the Administrative
Agent or such Lender Party to make an entry, or any finding that an entry is
incorrect, in the Register or such account or accounts shall not limit or
otherwise affect the obligations of the Borrower under this Agreement.

SECTION 2.17. Increase in Revolving Credit Facility.     (a)     Request for
Increase. Provided (i) there exists no Default and (ii) after giving effect
thereto, the Borrower shall be in pro forma compliance with the covenants
contained in Section 5.04, upon written notice to the Administrative Agent, the
Borrower may, from time to time, request an increase in the Revolving Credit
Facility by an amount (for all such requests) not to exceed $100,000,000;
provided that any such request for an increase shall be in a minimum amount of
$50,000,000. If the Borrower elects to request that existing Revolving Credit
Lenders participate in such increase, then at the time of sending such notice,
the Borrower shall request that the Administrative Agent promptly notify the
existing Revolving Credit Lenders of such request and (in consultation with the
Administrative Agent) shall specify the time period within which each Revolving
Credit Lender is requested to respond (which shall in no event be less than ten
Business Days from the date of delivery of such notice to the Revolving Credit
Lenders).

(b)     Lender Elections to Increase. If requested by the Borrower to provide an
increase, each Revolving Credit Lender shall notify the Administrative Agent
within such time period as set forth in the notice referred to in clause (a)
whether or not it agrees to increase its Revolving Credit Commitment and, if so,
whether by an amount equal to, greater than, or less than its Pro Rata Share of
such requested increase. Any Revolving Credit Lender not responding within such
time period shall be deemed to have declined to increase its Revolving Credit
Commitment. The Administrative Agent shall notify the Borrower and each
Revolving Credit Lender of the Revolving Credit Lenders’ responses to each
request made hereunder.

(c)      Additional Revolving Credit Lenders. Subject to the approval of the
Administrative Agent, the Lead Arrangers, the Issuing Bank and the Swing Line
Lender (which approvals shall not be unreasonably withheld), the Borrower may,
in lieu of or in addition to requesting that the Revolving Credit Lenders
provide such increase, invite additional Eligible Assignees to become Revolving
Credit Lenders pursuant to a joinder agreement in form and substance
satisfactory to the Administrative Agent and its counsel.

(d)      Effective Date and Allocations. If the Revolving Credit Facility is
increased in accordance with this Section, the Administrative Agent and the
Borrower shall determine the effective date (the “Revolving Credit Increase
Effective Date”) and the final allocation of such increase. The Administrative
Agent shall promptly notify the Borrower and the Revolving Credit Lenders
(including Eligible Assignees that become Revolving Credit Lenders in accordance
with clause (c) above) of the final allocation of such increase and the
Revolving Credit Increase Effective Date.

Steel Dynamics – Credit Agreement

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

Back to Contents

40

(e)     Conditions to Effectiveness of Increase. As a condition precedent to
such increase, the Borrower shall deliver to the Administrative Agent a
certificate of each Loan Party dated as of the Revolving Credit Increase
Effective Date (in sufficient copies for each Lender) signed by a Responsible
Officer of such Loan Party (i) certifying and attaching the resolutions adopted
by such Loan Party approving or consenting to such increase, and (ii) in the
case of the Borrower, certifying that, before and after giving effect to such
increase, (A) the representations and warranties contained in Article IV and the
other Loan Documents are true and correct on and as of the Revolving Credit
Increase Effective Date, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true
and correct as of such earlier date, and except that for purposes of this
Section 2.17, the representations and warranties contained in subsections (g)
and (h) of Section 4.01 shall be deemed to refer to the most recent statements
furnished pursuant to subsections (b) and (c), respectively, of Section 5.03,
(B) no Default exists and (C) the Borrower is in pro forma compliance with the
covenants in Section 5.04. The Borrower shall prepay any Revolving Credit Loans
outstanding on the Revolving Credit Increase Effective Date (and pay any
additional amounts required pursuant to Section 8.04(c)) to the extent necessary
to keep the outstanding Revolving Credit Loans ratable with any revised Pro Rata
Shares arising from any nonratable increase in the Revolving Credit Commitments
under this Section.

(f)     Conflicting Provisions. This Section shall supersede any provisions in
Sections 2.13 or 8.01 to the contrary.

ARTICLE III
CONDITIONS OF LENDING AND
ISSUANCES OF LETTERS OF CREDIT

SECTION 3.01. Conditions Precedent to Initial Extension of Credit. The
obligation of each Lender to make an Advance or of any Issuing Bank to issue a
Letter of Credit on the occasion of the Initial Extension of Credit hereunder is
subject to the satisfaction of the following conditions precedent before or
concurrently with the Initial Extension of Credit:

(a)    The Administrative Agent shall have received on or before the day of the
Initial Extension of Credit the following, each dated such day (unless otherwise
specified), in form and substance satisfactory to the Lead Arrangers and the
Administrative Agent (unless otherwise specified) and (except for the Notes) in
sufficient copies for each Lender Party:

(i)     The Notes payable to the order of the Lenders to the extent requested
pursuant to Section 2.16.

(ii)     A security agreement in substantially the form of Exhibit D hereto
(together with each other security agreement and security agreement supplement
delivered pursuant to Section 5.01(j), in each case as amended, supplemented or
otherwise modified from time to time, the “Security Agreement”), duly executed
by each Loan Party, together with:

(A)     certificates representing the Pledged Shares referred to therein
accompanied by undated stock powers executed in blank and instruments evidencing
the Pledged Debt indorsed in blank,

Steel Dynamics – Credit Agreement

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

Back to Contents

41

(B)     acknowledgment copies of proper financing statements, duly filed on or
before the day of the Initial Extension of Credit under the Uniform Commercial
Code of all jurisdictions that the Administrative Agent may deem necessary or
desirable in order to perfect and protect the first priority liens and security
interests created under the Security Agreement, covering the Collateral
described in the Security Agreement,

(C)     completed requests for information, dated on or before the date of the
Initial Extension of Credit, listing the financing statements referred to in
clause (B)above and all other effective financing statements filed in all
jurisdictions that the Administrative Agent may deem necessary or desirable that
name any Loan Party as debtor, together with copies of such other financing
statements,

(D)     evidence of the completion of all other recordings and filings of or
with respect to the Security Agreement that the Administrative Agent may deem
necessary or desirable in order to perfect and protect the Liens created
thereby,

(E)     evidence of the insurance required by the terms of the Security
Agreement, together with an insurance broker’s letter satisfactory to the
Administrative Agent as to the customary nature and adequacy of the Borrower’s
insurance, and

(F)     evidence that all other action that the Administrative Agent may deem
necessary or desirable in order to perfect and protect the first priority liens
and security interests created under the Security Agreement has been taken
(including, without limitation, receipt of duly executed payoff letters, UCC-3
termination statements and landlords’ and bailees’ waiver and consent
agreements).

(iii)     A guaranty in substantially the form of Exhibit E hereto (together
with each other guaranty and guaranty supplement delivered pursuant to Section
5.01(j), in each case as amended, supplemented or otherwise modified from time
to time, the “Subsidiary Guaranty”), duly executed by each Subsidiary Guarantor.

(iv)     Certified copies of the resolutions of the Board of Directors of each
Loan Party approving the Transaction and each Transaction Document to which it
is or is to be a party, and of all documents evidencing other necessary
corporate action and governmental and other third party approvals and consents,
if any, with respect to the Transaction and each Transaction Document to which
it is or is to be a party.

(v)     A copy of a certificate of the Secretary of State of the jurisdiction of
incorporation of each Loan Party, dated reasonably near the date of the Initial
Extension of Credit, certifying (A) as to a true and correct copy of the charter
of such Loan Party and each amendment thereto on file in such Secretary’s office
and (B) that (1) such amendments are the only amendments to such Loan Party’s
charter on file in such Secretary’s office, (2) if applicable, such Loan Party
has paid all franchise taxes to the date of such certificate and (C) such Loan
Party is duly incorporated and in good standing or presently subsisting under
the laws of the State of the jurisdiction of its incorporation.

Steel Dynamics – Credit Agreement

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

Back to Contents

42

(vi)     A copy of a certificate of the Secretary of State of each jurisdiction
reasonably requested by the Administrative Agent, dated reasonably near the date
of the Initial Extension of Credit, stating that a Loan Party is duly qualified
and in good standing as a foreign corporation in such State and has filed all
annual reports required to be filed to the date of such certificate.

(vii)     A certificate of each Loan Party, signed on behalf of such Loan Party
by its President or a Vice President and its Secretary or any Assistant
Secretary, dated the date of the Initial Extension of Credit (the statements
made in which certificate shall be true on and as of the date of the Initial
Extension of Credit), certifying as to (A) the absence of any amendments to the
charter of such Loan Party since the date of the Secretary of State’s
certificate referred to in Section 3.01(a)(v), (B) a true and correct copy of
the bylaws of such Loan Party as in effect on the date on which the resolutions
referred to in Section 3.01(a)(iv) were adopted and on the date of the Initial
Extension of Credit, (C) the due incorporation and good standing or valid
existence of such Loan Party as a corporation organized under the laws of the
jurisdiction of its incorporation, and the absence of any proceeding for the
dissolution or liquidation of such Loan Party, (D) the truth of the
representations and warranties contained in the Loan Documents as though made on
and as of the date of the Initial Extension of Credit and (E) the absence of any
event occurring and continuing, or resulting from the Initial Extension of
Credit, that constitutes a Default.

(viii)     A certificate of the Secretary or an Assistant Secretary of each Loan
Party certifying the names and true signatures of the officers of such Loan
Party authorized to sign each Transaction Document to which it is or is to be a
party and the other documents to be delivered hereunder and thereunder.

(ix)     Certified copies of each of the Related Documents, duly executed by the
parties thereto and in form and substance satisfactory to the Lender Parties,
together with all agreements, instruments and other documents delivered in
connection therewith as the Administrative Agent or the Lead Arrangers shall
request.

(x)     Certificates, in substantially the form of Exhibit F, attesting to the
Solvency of each Loan Party individually and together with its Subsidiaries,
taken as a whole, before and after giving effect to the Transaction, from its
Chief Financial Officer.

(xi)     Audited annual financial statements dated December 31, 2004, interim
financial statements dated the end of the most recent fiscal quarter for which
financial statements are available, pro forma consolidated financial statements
as to the Borrower and its Subsidiaries and forecasts prepared by management of
the Borrower, in form and substance satisfactory to the Administrative Agent and
the Lead Arrangers, of balance sheets, income statements and cash flow
statements on an annual basis for each year following the Closing Date until the
Termination Date.

(xii)     Evidence of insurance in respect of the Collateral naming the
Collateral Agent, on behalf of the Lender Parties, as additional insured and
loss payee with such responsible and reputable insurance companies or
associations, and in such amounts and covering such risks, as is satisfactory to
the Administrative Agent and the Lead Arrangers.

Steel Dynamics – Credit Agreement

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

Back to Contents

43

(xiii)     Certified copies of each employment agreement and other compensation
arrangement with each executive officer of any Loan Party or any of its
Subsidiaries as the Lead Arrangers or the Administrative Agent shall request.

(xiv)     A certificate of a Financial Officer of the Borrower, in form and
substance satisfactory to the Lead Arrangers and the Administrative Agent,
demonstrating that the aggregate of (i) 85% of the book value of the accounts
receivable, and (ii) 60% of the book value of the inventory, in each case as
reflected in the Borrower’s financial statements for the fiscal quarter ended
June 30, 2005, exceeds the sum of aggregate principal amount of the Commitments
plus the aggregate amount of obligations outstanding under Secured Cash
Management Agreements plus the aggregate Agreement Value of all Secured Hedge
Agreements, in each case as of the date hereof.

(xv)     Certified copies of all Material Contracts of each Loan Party and its
Subsidiaries as the Lead Arrangers or the Administrative Agent shall request.

(xvi)     A Notice of Borrowing or Notice of Issuance, as applicable, relating
to the Initial Extension of Credit.

(xvii)     Favorable opinions of Barrett & McNagny, LLC and Greenberg Traurig
LLP counsel for the Loan Parties, in substantially the forms of respectively
Exhibits G-1 and G-2 hereto and as to such other matters as the Administrative
Agent or the Lead Arrangers may reasonably request.

(xviii)     Evidence satisfactory to the Administrative Agent and the Lead
Arrangers that CT Corporation System shall have been appointed as Process Agent
under Section 8.12 hereof.

(b)     The Administrative Agent and the Lead Arrangers shall be satisfied with
the corporate and legal structure and capitalization of each Loan Party and each
of its Subsidiaries the Equity Interests in which Subsidiaries are being pledged
pursuant to the Loan Documents, including the terms and conditions of the
charter, bylaws and each class of Equity Interest in each Loan Party and each
such Subsidiary and of each agreement or instrument relating to such structure
or capitalization.

(c)     All Equity Interests of the Guarantors shall be owned by the Borrower or
one or more of the Borrower’s Subsidiaries, in each case free and clear of any
Lien other than Liens created under the Loan Documents.

(d)     The Administrative Agent and the Lead Arrangers shall be satisfied that
all Existing Debt, other than Surviving Debt, has been prepaid, redeemed or
defeased in full or otherwise satisfied and extinguished and that all Surviving
Debt shall be on terms and conditions satisfactory to the Administrative Agent
and the Lead Arrangers.

(e)     Before giving effect to the Transaction, there shall have occurred no
Material Adverse Change since December 31, 2004.

(f)     There shall exist no action, suit, investigation, litigation or
proceeding affecting any Loan Party or any of its Subsidiaries pending or
threatened before any court, governmental agency or arbitrator that (i) could
reasonably be expected to have a Material Adverse Effect other than the matters
described on Schedule 4.01(f) hereto (the “Disclosed Litigation”) or (ii)
purports to affect the legality, validity or enforceability of any Transaction
Document or the consummation of the Transaction, and there shall have been no
adverse change in the status, or financial effect on, any Loan Party or any of
its Subsidiaries, of the Disclosed Litigation from that described on Schedule
4.01(f) hereto.

Steel Dynamics – Credit Agreement

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

Back to Contents

44

(g)     All governmental and third party consents and approvals necessary in
connection with the Transaction shall have been obtained (without the imposition
of any conditions that are not acceptable to the Lead Arrangers and the
Administrative Agent) and shall remain in effect; and no law or regulation shall
be applicable in the judgment of the Lead Arrangers and the Administrative
Agent, in each case that restrains, prevents or imposes materially adverse
conditions upon the Transaction.

(h)     The Borrower shall have paid all accrued fees of the Lead Arrangers, the
Agents and the Lender Parties and all accrued expenses of the Lead Arrangers
(including the accrued fees and expenses of counsel to the Lead Arrangers and
local counsel to the Lender Parties).

(i)     The Refinancing shall have been consummated or shall be consummated or
concurrently consummated with the Initial Extension of Credit, all advances and
other amounts owing under the Existing Credit Agreement shall have been repaid
in full, the commitments thereunder shall have terminated and the letters of
credit issued thereunder shall have been canceled or the reimbursement of draws
thereunder provided for in a manner acceptable to the Lead Arrangers (it being
understood that treating such letters of credit as Existing Letters of Credit
hereunder is acceptable to the Lead Arrangers), and all Liens and guaranties
supporting any Debt under the Existing Credit Agreement shall have been fully
released and terminated.

SECTION 3.02. Conditions Precedent to Each Borrowing and Issuance and Renewal.
The obligation of each Appropriate Lender to make an Advance (other than a
Letter of Credit Advance made by an Issuing Bank or a Revolving Credit Lender
pursuant to Section 2.03(c) and a Swing Line Advance made by a Revolving Credit
Lender pursuant to Section 2.02(b)) on the occasion of each Borrowing (including
the initial Borrowing), and the obligation of an Issuing Bank to issue a Letter
of Credit (including the initial issuance) or renew a Letter of Credit and the
right of the Borrower to request a Swing Line Borrowing, shall be subject to the
further conditions precedent that on the date of such Borrowing or issuance or
renewal (a) the following statements shall be true (and each of the giving of
the applicable Notice of Borrowing, Notice of Swing Line Borrowing, Notice of
Issuance or Notice of Renewal and the acceptance by the Borrower of the proceeds
of such Borrowing or of such Letter of Credit or the renewal of such Letter of
Credit shall constitute a representation and warranty by the Borrower that both
on the date of such notice and on the date of such Borrowing or issuance or
renewal such statements are true):

(i)     the representations and warranties contained in each Loan Document are
true and correct in all material respects on and as of such date, before and
after giving effect to such Borrowing or issuance or renewal and to the
application of the proceeds therefrom, as though made on and as of such date,
other than any such representations or warranties that, by their terms, refer to
a specific date other than the date of such Borrowing or issuance or renewal, in
which case as of such specific date; and

(ii)     no Default has occurred and is continuing, or would result from such
Borrowing or issuance or renewal or from the application of the proceeds
therefrom; and

Steel Dynamics – Credit Agreement

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

Back to Contents

45

(iii)     after giving effect to such Borrowing or issuance or renewal, the
aggregate of (A) 85% of the book value of accounts receivables that constitute
Collateral and (B) 60% of the book value of inventory that constitutes
Collateral will not be less than the sum of (A) aggregate principal amount
outstanding under the Revolving Credit Facility at such time (including
outstanding Letters of Credit and Swing Line Advances) plus (B) the aggregate
amount of obligations outstanding under Secured Cash Management Agreements of
such time plus (C) the aggregate Agreement Value of all Secured Hedge Agreements
at such time;

and (b) the Administrative Agent shall have received such other approvals,
opinions or documents as the Administrative Agent or the Lead Arrangers may
reasonably request.

SECTION 3.03. Determinations Under Section 3.01. For purposes of determining
compliance with the conditions specified in Section 3.01, each Lender Party
shall be deemed to have consented to, approved or accepted or to be satisfied
with each document or other matter required thereunder to be consented to or
approved by or acceptable or satisfactory to the Lender Parties unless an
officer of the Administrative Agent responsible for the transactions
contemplated by the Loan Documents shall have received notice from such Lender
Party prior to the Initial Extension of Credit specifying its objection thereto
and, if the Initial Extension of Credit consists of a Borrowing, such Lender
Party shall not have made available to the Administrative Agent such Lender
Party’s ratable portion of such Borrowing.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

SECTION 4.01. Representations and Warranties of the Borrower. The Borrower
represents and warrants as follows:

(a)     Each Loan Party and each of its Subsidiaries (i) is a corporation or a
limited liability company duly organized, validly existing and in good standing
under the laws of the jurisdiction of its formation, (ii) is duly qualified and
in good standing as a foreign corporation or limited liability company in each
other jurisdiction in which it owns or leases property or in which the conduct
of its business requires it to so qualify or be licensed except where the
failure to so qualify or be licensed would not be reasonably likely to have a
Material Adverse Effect and (iii) has all requisite entity power and authority
(including, without limitation, all governmental licenses, permits and other
approvals) to own or lease and operate its properties and to carry on its
business as now conducted and as proposed to be conducted. Set forth on Schedule
4.01(a) hereto is a complete and accurate list of all Loan Parties, showing as
of the date hereof (as to each Loan Party) the jurisdiction of its formation,
the address of its principal place of business and its U.S. taxpayer
identification number or, in the case of any non-U.S. Loan Party that does not
have a U.S. taxpayer identification number, its unique identification number
issued to it by the jurisdiction of its formation. The copy of the charter of
each Loan Party and each amendment thereto provided pursuant to Section
3.01(a)(vii) is a true and correct copy of each such document, each of which is
valid and in full force and effect.

(b)     Set forth on Schedule 4.01(b) hereto is a complete and accurate list of
all Subsidiaries of each Loan Party, showing as of the date hereof (as to each
such Subsidiary) the jurisdiction of its incorporation, the number of shares of
each class of its Equity Interests authorized, and the number outstanding, on
the date hereof and the percentage of each such class of its Equity Interests
owned (directly or indirectly) by such Loan Party and the number of shares
covered by all outstanding options, warrants, rights of conversion or purchase
and similar rights at the date hereof. All of the outstanding Equity Interests
in each Loan Party’s Subsidiaries has been validly issued, are fully paid and
non-assessable and are owned by such Loan Party or one or more of its
Subsidiaries free and clear of all Liens, except those created under the
Collateral Documents.

Steel Dynamics – Credit Agreement

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

Back to Contents

46

(c)      The execution, delivery and performance by each Loan Party of each
Transaction Document to which it is or is to be a party, and the consummation of
the Transaction, are within such Loan Party’s corporate powers, have been duly
authorized by all necessary corporate action, and do not (i) contravene such
Loan Party’s charter or bylaws, (ii) violate any law, rule, regulation
(including, without limitation, Regulation X of the Board of Governors of the
Federal Reserve System), order, writ, judgment, injunction, decree,
determination or award, (iii) conflict with or result in the breach of, or
constitute a default or require any payment to be made under, any contract, loan
agreement, indenture, mortgage, deed of trust, lease or other instrument binding
on or affecting any Loan Party, any of its Subsidiaries or any of their
properties or (iv) except for the Liens created under the Loan Documents, result
in or require the creation or imposition of any Lien upon or with respect to any
of the properties of any Loan Party or any of its Subsidiaries. No Loan Party or
any of its Subsidiaries is in violation of any such law, rule, regulation,
order, writ, judgment, injunction, decree, determination or award or in breach
of any such contract, loan agreement, indenture, mortgage, deed of trust, lease
or other instrument, the violation or breach of which could be reasonably likely
to have a Material Adverse Effect.

(d)      No authorization or approval or other action by, and no notice to or
filing with, any governmental authority or regulatory body or any other third
party is required for (i) the due execution, delivery, recordation, filing or
performance by any Loan Party of any Transaction Document to which it is or is
to be a party, or for the consummation of the Transaction, (ii) the grant by any
Loan Party of the Liens granted by it pursuant to the Collateral Documents,
(iii) the perfection or maintenance of the Liens created under the Collateral
Documents (including the first priority nature thereof) or (iv) the exercise by
any Agent or any Lender Party of its rights under the Loan Documents or the
remedies in respect of the Collateral pursuant to the Collateral Documents,
except for the authorizations, approvals, actions, notices and filings listed on
Schedule 4.01(d) hereto, all of which have been duly obtained, taken, given or
made and are in full force and effect. All applicable waiting periods in
connection with the Transaction have expired without any action having been
taken by any competent authority restraining, preventing or imposing materially
adverse conditions upon the Transaction or the rights of the Loan Parties or
their Subsidiaries freely to transfer or otherwise dispose of, or to create any
Lien on, any properties now owned or hereafter acquired by any of them.

(e)      This Agreement has been, and each other Transaction Document when
delivered hereunder will have been, duly executed and delivered by each Loan
Party party thereto. This Agreement is, and each other Transaction Document when
delivered hereunder will be, the legal, valid and binding obligation of each
Loan Party thereto, enforceable against such Loan Party party in accordance with
its terms.

(f)      There is no action, suit, investigation, litigation or proceeding
affecting any Loan Party or any of its Subsidiaries, including any Environmental
Action, pending or threatened before any court, governmental agency or
arbitrator that (i) could be reasonably likely to have a Material Adverse Effect
(other than the Disclosed Litigation) or (ii) purports to affect the legality,
validity or enforceability of any Transaction Document or the consummation of
the Transaction, and there has been no material adverse change in the status, or
financial effect on any Loan Party or any of its Subsidiaries, of the Disclosed
Litigation from that described on Schedule 4.01(f) hereto.

Steel Dynamics – Credit Agreement

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

Back to Contents

47

(g)      The Consolidated balance sheet of the Borrower and its Subsidiaries as
at December 31, 2004, and the related Consolidated statement of income and
Consolidated statement of cash flows of the Borrower and its Subsidiaries for
the fiscal year then ended, accompanied by an unqualified opinion of Ernst &
Young LLP, independent public accountants, and the Consolidated balance sheet of
the Borrower and its Subsidiaries as at June 30, 2005, and the related
Consolidated statements of income and Consolidated statement of cash flows of
the Borrower and its Subsidiaries for the six months then ended, duly certified
by the Chief Financial Officer of the Borrower, copies of which have been
furnished to each Lender Party, fairly present, subject, in the case of said
balance sheet as at June 30, 2005, and said statements of income and cash flows
for the six months then ended, to year-end audit adjustments, the Consolidated
financial condition of the Borrower and its Subsidiaries as at such dates and
the Consolidated results of operations of the Borrower and its Subsidiaries for
the periods ended on such dates, all in accordance with generally accepted
accounting principles applied on a consistent basis, and since December 31,
2004, there has been no Material Adverse Change and no event has occurred or
condition arisen that could reasonably be expected to have a Material Adverse
Effect. Each reconciliation for the Borrower on a stand-alone basis with respect
to each of the financial statements referred to above as at each such date for
each such period, duly certified by the Chief Financial Officer of the Borrower,
a copy of which has been furnished to each Lender Party, fairly present the
financial condition and results of operations of the Borrower on a stand-alone
basis as at each such date.

(h)      The Consolidated forecasted balance sheet, statement of income and
statement of cash flows of the Borrower and its Subsidiaries delivered to the
Lender Parties pursuant to Section 3.01(a)(xi) or 5.03 were prepared in good
faith on the basis of the assumptions stated therein, which assumptions were
fair in light of the conditions existing at the time of delivery of such
forecasts, and represented, at the time of delivery, the Borrower’s best
estimate of its future financial performance.

(i)      Neither the Information Memorandum nor any other information, exhibit
or report furnished by or on behalf of any Loan Party to any Agent or any Lender
Party in connection with the negotiation and syndication of the Loan Documents
or pursuant to the terms of the Loan Documents contained any untrue statement of
a material fact or omitted to state a material fact necessary to make the
statements made therein not misleading.

(j)      The Borrower is not engaged in the business of extending credit for the
purpose of purchasing or carrying Margin Stock, and no proceeds of any Advance
or drawings under any Letter of Credit will be used to purchase or carry any
Margin Stock or to extend credit to others for the purpose of purchasing or
carrying any Margin Stock.

(k)      Neither any Loan Party nor any of its Subsidiaries is an “investment
company”, or an “affiliated person” of, or “promoter” or “principal underwriter”
for, an “investment company”, as such terms are defined in the Investment
Company Act of 1940, as amended. Neither any Loan Party nor any of its
Subsidiaries is a “holding company”, or a “subsidiary company” of a “holding
company”, or an “affiliate” of a “holding company” or of a “subsidiary company”
of a “holding company”, as such terms are defined in the Public Utility Holding
Company Act of 1935, as amended. Neither the making of any Advances, nor the
issuance of any Letters of Credit, nor the application of the proceeds or
repayment thereof by the Borrower, nor the consummation of the other
transactions contemplated by the Transaction Documents, will violate any
provision of any such Act or any rule, regulation or order of the Securities and
Exchange Commission thereunder.

Steel Dynamics – Credit Agreement

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

Back to Contents

48

(l)      Neither any Loan Party nor any of its Subsidiaries is a party to any
indenture, loan or credit agreement or any lease or other agreement or
instrument or subject to any charter or corporate restriction that could be
reasonably likely to have a Material Adverse Effect.

(m)      All filings and other actions necessary or desirable to perfect and
protect the security interest in the Collateral created under the Collateral
Documents have been duly made or taken and are in full force and effect, and the
Collateral Documents create in favor of the Collateral Agent for the benefit of
the Secured Parties a valid and, together with such filings and other actions,
perfected first priority security interest in the Collateral, securing the
payment of the Secured Obligations, and all filings and other actions necessary
or desirable to perfect and protect such security interest have been duly taken.
The Loan Parties are the legal and beneficial owners of the Collateral free and
clear of any Lien, except for the liens and security interests created or
permitted under the Loan Documents.

(n)     Each Loan Party is, individually and together with its Subsidiaries,
Solvent.

(o)   (i)      Set forth on Schedule 4.01(o) hereto is a complete and accurate
list of all Plans, Multiemployer Plans and Welfare Plans.

(ii)      No ERISA Event has occurred or is reasonably expected to occur with
respect to any Plan that has resulted in or is reasonably expected to result in
a material liability of any Loan Party or any ERISA Affiliate.

(iii)      Schedule B (Actuarial Information) to the most recent annual report
(Form 5500 Series) for each Plan, copies of which have been filed with the
Internal Revenue Service and furnished to the Lender Parties, is complete and
accurate and fairly presents the funding status of such Plan, and since the date
of such Schedule B there has been no material adverse change in such funding
status.

(iv)      Neither any Loan Party nor any ERISA Affiliate has incurred or is
reasonably expected to incur any Withdrawal Liability to any Multiemployer Plan.

(v)      Neither any Loan Party nor any ERISA Affiliate has been notified by the
sponsor of a Multiemployer Plan that such Multiemployer Plan is in
reorganization or has been terminated, within the meaning of Title IV of ERISA,
and no such Multiemployer Plan is reasonably expected to be in reorganization or
to be terminated, within the meaning of Title IV of ERISA.

(p)      Except as otherwise set forth on Part I of Schedule 4.01(p) hereto, the
operations and properties of each Loan Party and each of its Subsidiaries comply
in all material respects with all applicable Environmental Laws and
Environmental Permits, all past non-compliance with such Environmental Laws and
Environmental Permits has been resolved without ongoing obligations or costs,
and no circumstances exist that could be reasonably likely to (A) form the basis
of an Environmental Action against any Loan Party or any of its Subsidiaries or
any of their properties that could have a Material Adverse Effect or (B) cause
any such property to be subject to any restrictions on ownership, occupancy, use
or transferability under any Environmental Law.

(i)      Except as otherwise set forth on Part II of Schedule 4.01(p) hereto,
none of the properties currently or formerly owned or operated by any Loan Party
or any of its Subsidiaries is listed or proposed for listing on the NPL or on
the CERCLIS or any analogous foreign, state or local list or is adjacent to any
such property; there are no and never have been any underground or aboveground
storage tanks or any surface impoundments, septic tanks, pits, sumps or lagoons
in which Hazardous Materials are being or have been treated, stored or disposed
on any property currently owned or operated by any Loan Party or any of its
Subsidiaries or, to the best of its knowledge, on any property formerly owned or
operated by any Loan Party or any of its Subsidiaries; there is no asbestos or
asbestos-containing material on any property currently owned or operated by any
Loan Party or any of its Subsidiaries; and Hazardous Materials have not been
released, discharged or disposed of on any property currently or formerly owned
or operated by any Loan Party or any of its Subsidiaries.

Steel Dynamics – Credit Agreement

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

Back to Contents

49

(ii)      Except as otherwise set forth on Part III of Schedule 4.01(p) hereto,
neither any Loan Party nor any of its Subsidiaries is undertaking, and has not
completed, either individually or together with other potentially responsible
parties, any investigation or assessment or remedial or response action relating
to any actual or threatened release, discharge or disposal of Hazardous
Materials at any site, location or operation, either voluntarily or pursuant to
the order of any governmental or regulatory authority or the requirements of any
Environmental Law; and all Hazardous Materials generated, used, treated, handled
or stored at, or transported to or from, any property currently or formerly
owned or operated by any Loan Party or any of its Subsidiaries have been
disposed of in a manner not reasonably expected to result in material liability
to any Loan Party or any of its Subsidiaries.

(q)           (i)     Neither any Loan Party nor any of its Subsidiaries is
party to any tax sharing agreement.

(ii)      Each Loan Party and each of its Subsidiaries and Affiliates has filed,
has caused to be filed or has been included in all tax returns (Federal, state,
local and foreign) required to be filed and has paid all taxes shown thereon to
be due, together with applicable interest and penalties.

(iii)      Set forth on Part I of Schedule 4.01(q) hereto is a complete and
accurate list, as of the date hereof, of each taxable year of each Loan Party
and each of its Subsidiaries and Affiliates for which Federal income tax returns
have been filed and for which the expiration of the applicable statute of
limitations for assessment or collection has not occurred by reason of extension
or otherwise (an “Open Year”).

(iv)      There are no pending tax audits or examinations, except as set forth
on Part II of Schedule 4.01(q) hereof, and no deficiencies or other claims for
unpaid taxes are proposed in writing in respect of taxes (Federal, state, local
and foreign) due from, or with respect to, any of the Loan Parties, their
Subsidiaries or Affiliates or with respect to any tax return filed by, or in
respect of, any of them, except as set forth on Part II of Schedule 4.01(q)
hereof.

(r)      Neither the business nor the properties of any Loan Party or any of its
Subsidiaries are affected by any fire, explosion, accident, strike, lockout or
other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of
the public enemy or other casualty (whether or not covered by insurance) that
could be reasonably likely to have a Material Adverse Effect.

(s)      Set forth on Schedule 4.01(s) hereto is a complete and accurate list of
all Existing Debt (other than Surviving Debt), showing as of the date hereof the
obligor and the principal amount outstanding thereunder.

Steel Dynamics – Credit Agreement

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

Back to Contents

50

(t)      Set forth on Schedule 4.01(t) hereto is a complete and accurate list of
all Debt which will remain outstanding after giving effect to the consummation
of the Transaction, showing as of the date hereof the obligor and the principal
amount outstanding thereunder, the maturity date thereof and the amortization
schedule therefor, together with a true and complete copy of the Indenture and
of the form of Senior Notes and of the Convertible Debt Documents.

(u)      Set forth on Schedule 4.01(u) hereto is a complete and accurate list of
all Liens on the property or assets of any Loan Party or any of its
Subsidiaries, showing as of the date hereof the lienholder thereof, the
principal amount of the obligations secured thereby and the property or assets
of such Loan Party or such Subsidiary subject thereto.

(v)      Set forth on Schedule 4.01(v) hereto is a complete and accurate list of
all Investments held by any Loan Party or any of its Subsidiaries on the date
hereof, showing as of the date hereof the amount, obligor or issuer and
maturity, if any, thereof.

(w)      Set forth on Schedule 4.01(w) hereto is a complete and accurate list of
all patents, trademarks, trade names, service marks and copyrights, and all
applications therefor and licenses thereof, of each Loan Party or any of its
Subsidiaries, showing as of the date hereof the jurisdiction in which
registered, the registration number, the date of registration and the expiration
date.

(x)      Set forth on Schedule 4.01(x) hereto is a complete and accurate list of
all Material Contracts of each Loan Party and its Subsidiaries, showing as of
the date hereof the parties, subject matter and term thereof. Each such Material
Contract has been duly authorized, executed and delivered by all parties
thereto, has not been amended or otherwise modified, is in full force and effect
and is binding upon and enforceable against all parties thereto in accordance
with its terms, and there exists no default under any Material Contract by any
party thereto.

ARTICLE V

COVENANTS OF THE BORROWER

SECTION 5.01. Affirmative Covenants.     So long as any Advance or any other
Obligation of any Loan Party under any Loan Document shall remain unpaid, any
Letter of Credit shall be outstanding or any Lender Party shall have any
Commitment hereunder, the Borrower will:

(a)      Compliance with Laws, Etc.     Comply, and cause each of its
Subsidiaries to comply, in all material respects, with all applicable laws,
rules, regulations and orders, such compliance to include, without limitation,
compliance with ERISA, the Racketeer Influenced and Corrupt Organizations
Chapter of the Organized Crime Control Act of 1970 and the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Pub. L. 107-56 and all other laws and
regulations relating to money laundering and terrorist activities.

(b)      Payment of Taxes, Etc.     Pay and discharge, and cause each of its
Subsidiaries to pay and discharge, before the same shall become delinquent, (i)
all taxes, assessments and governmental charges or levies imposed upon it or
upon its property and (ii) all lawful claims that, if unpaid, might by law
become a Lien upon its property; provided, however, that neither the Borrower
nor any of its Subsidiaries shall be required to pay or discharge any such tax,
assessment, charge or claim that is being contested in good faith and by proper
proceedings and as to which appropriate reserves are being maintained, unless
and until any Lien resulting therefrom attaches to its property and becomes
enforceable against its other creditors.

Steel Dynamics – Credit Agreement

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

Back to Contents

51

(c)     Compliance with Environmental Laws. Comply, and cause each of its
Subsidiaries and all lessees and other Persons operating or occupying its
properties to comply, in all material respects, with all applicable
Environmental Laws and Environmental Permits; obtain and renew and cause each of
its Subsidiaries to obtain and renew all Environmental Permits necessary for its
operations and properties; and conduct, and cause each of its Subsidiaries to
conduct, any investigation, study, sampling and testing, and undertake any
cleanup, removal, remedial or other action necessary to remove and clean up all
Hazardous Materials from any of its properties, in accordance with the
requirements of all Environmental Laws; provided, however, that neither the
Borrower nor any of its Subsidiaries shall be required to undertake any such
cleanup, removal, remedial or other action to the extent that its obligation to
do so is being contested in good faith and by proper proceedings and appropriate
reserves are being maintained with respect to such circumstances.

(d)      Maintenance of Insurance. Maintain, and cause each of its Subsidiaries
to maintain, insurance with responsible and reputable insurance companies or
associations in such amounts and covering such risks as is usually carried by
companies engaged in similar businesses and owning similar properties in the
same general areas in which the Borrower or such Subsidiary operates.

(e)     Preservation of Corporate Existence, Etc. Preserve and maintain, and
cause each of its Subsidiaries to preserve and maintain, its existence, legal
structure, legal name, rights (charter and statutory), permits, licenses,
approvals, privileges and franchises; provided, however, that the Borrower and
its Subsidiaries may consummate any merger or consolidation permitted under
Section 5.02(d) and provided further that neither the Borrower nor any of its
Subsidiaries shall be required to preserve any right, permit, license, approval,
privilege or franchise if the Board of Directors of the Borrower or such
Subsidiary shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Borrower or such Subsidiary, as the case
may be, and that the loss thereof is not disadvantageous in any material respect
to the Borrower, such Subsidiary or the Lender Parties.

(f)     Visitation Rights. At any reasonable time and from time to time, permit
any of the Agents or any of the Lender Parties, or any agents or representatives
thereof, to examine and make copies of and abstracts from the records and books
of account of, and visit the properties of, the Borrower and any of its
Subsidiaries, and to discuss the affairs, finances and accounts of the Borrower
and any of its Subsidiaries with any of their officers or directors and with
their independent certified public accountants.

(g)     Keeping of Books. Keep, and cause each of its Subsidiaries to keep,
proper books of record and account, in which full and correct entries shall be
made of all financial transactions and the assets and business of the Borrower
and each such Subsidiary in accordance with generally accepted accounting
principles in effect from time to time.

(h)     Maintenance of Properties, Etc. Maintain and preserve, and cause each of
its Subsidiaries to maintain and preserve, all of its properties that are used
or useful in the conduct of its business in good working order and condition,
ordinary wear and tear excepted.

(i)     Transactions with Affiliates. Conduct, and cause each of its
Subsidiaries to conduct, all transactions otherwise permitted under the Loan
Documents with any of their Affiliates on terms that are fair and reasonable and
no less favorable to the Borrower or such Subsidiary than it would obtain in a
comparable arm’s-length transaction with a Person not an Affiliate.

Steel Dynamics – Credit Agreement

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

Back to Contents

52

(j)     Covenant to Guarantee Obligations and Give Security. Upon (x) the
request of the Collateral Agent following the occurrence and during the
continuance of a Default, (y) the formation or acquisition of any new direct or
indirect Subsidiaries by any Loan Party or (z) the acquisition of any Subject
Property by any Loan Party, and such Subject Property, in the judgment of the
Collateral Agent, shall not already be subject to a perfected first priority
security interest in favor of the Collateral Agent for the benefit of the
Secured Parties, then the Borrower shall, in each case at the Borrower’s
expense:

(i)     in connection with the formation or acquisition of a Subsidiary, within
10 days after such formation or acquisition, cause each such Subsidiary, and
cause each direct and indirect parent of such Subsidiary (if it has not already
done so), to duly execute and deliver to the Collateral Agent a guaranty or
guaranty supplement, in form and substance satisfactory to the Collateral Agent,
guaranteeing the other Loan Parties’ obligations under the Loan Documents,

(ii)     within 10 days after such request, formation or acquisition, furnish to
the Collateral Agent a description of the personal properties of the Loan
Parties and their respective Subsidiaries constituting Subject Property in
detail satisfactory to the Collateral Agent,

(iii)     within 15 days after such request, formation or acquisition, duly
execute and deliver, and cause each such Subsidiary and each direct and indirect
parent of such Subsidiary (if it has not already done so) to duly execute and
deliver, to the Collateral Agent pledges, assignments, security agreement
supplements and other security agreements, as specified by and in form and
substance satisfactory to the Collateral Agent, securing payment of all the
Obligations of the applicable Loan Party, such Subsidiary or such parent, as the
case may be, under the Loan Documents and constituting Liens on all such
properties which constitute Subject Property,

(iv)     within 30 days after such request, formation or acquisition, take, and
cause such Subsidiary or such parent to take, whatever action (including,
without limitation, the filing of Uniform Commercial Code financing statements,
and the giving of notices) may be necessary or advisable in the opinion of the
Collateral Agent to vest in the Collateral Agent (or in any representative of
the Collateral Agent designated by it) valid and subsisting Liens on the Subject
Property purported to be subject to the pledges, assignments, security agreement
supplements and security agreements delivered pursuant to this Section 5.01(j),
enforceable against all third parties in accordance with their terms,

(v)     within 60 days after such request, formation or acquisition, deliver to
the Collateral Agent, upon the request of the Collateral Agent in its sole
discretion, a signed copy of a favorable opinion, addressed to the Collateral
Agent and the other Secured Parties, of counsel for the Loan Parties acceptable
to the Collateral Agent as to the matters contained in clauses (i), (iii) and
(iv) above, as to such guaranties, guaranty supplements, pledges, assignments,
security agreement supplements and security agreements being legal, valid and
binding obligations of each Loan Party party thereto enforceable in accordance
with their terms, as to the matters contained in clause (iv) above, as to such
recordings, filings, notices, endorsements and other actions being sufficient to
create valid perfected Liens on such Subject Property, and as to such other
matters as the Collateral Agent may reasonably request,

Steel Dynamics – Credit Agreement

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

Back to Contents

53

(vi)     upon the occurrence and during the continuance of a Default, promptly
cause to be deposited any and all cash dividends paid or payable to it or any of
its Subsidiaries from any of its Subsidiaries from time to time into the
Collateral Account, and with respect to all other dividends paid or payable to
it or any of its Subsidiaries from time to time, promptly execute and deliver,
or cause such Subsidiary to promptly execute and deliver, as the case may be,
any and all further instruments and take or cause such Subsidiary to take, as
the case may be, all such other action as the Collateral Agent may deem
necessary or desirable in order to obtain and maintain from and after the time
such dividend is paid or payable a perfected, first priority lien on and
security interest in such dividends, and

(vii)      at any time and from time to time, promptly execute and deliver any
and all further instruments and documents and take all such other action as the
Collateral Agent may deem necessary or desirable in obtaining the full benefits
of, or in perfecting and preserving the Liens of, such guaranties, pledges,
assignments, security agreement supplements and security agreements.

(k)     Further Assurances. (i) Promptly upon request by any Agent, or any
Lender Party through the Administrative Agent, correct, and cause each of its
Subsidiaries promptly to correct, any defect or error that may be discovered in
any Loan Document or in the execution, acknowledgment, filing or recordation
thereof, and

(ii)     Promptly upon request by any Agent, or any Lender Party through the
Administrative Agent, do, execute, acknowledge, deliver, record, re-record,
file, re-file, register and re-register any and all such further acts, deeds,
conveyances, pledge agreements, assignments, financing statements and
continuations thereof, termination statements, notices of assignment, transfers,
certificates, assurances and other instruments as any Agent, or any Lender Party
through the Administrative Agent, may reasonably require from time to time in
order to (A) carry out more effectively the purposes of the Loan Documents, (B)
to the fullest extent permitted by applicable law, subject any Loan Party’s or
any of its Subsidiaries’ properties, assets, rights or interests to the Liens
now or hereafter intended to be covered by any of the Collateral Documents, (C)
perfect and maintain the validity, effectiveness and priority of any of the
Collateral Documents and any of the Liens intended to be created thereunder and
(D) assure, convey, grant, assign, transfer, preserve, protect and confirm more
effectively unto the Secured Parties the rights granted or now or hereafter
intended to be granted to the Secured Parties under any Loan Document or under
any other instrument executed in connection with any Loan Document to which any
Loan Party or any of its Subsidiaries is or is to be a party, and cause each of
its Subsidiaries to do so.

(l)     Performance of Related Documents. Perform and observe, and cause each of
its Subsidiaries to perform and observe, all of the terms and provisions of each
Related Document to be performed or observed by it, maintain each such Related
Document in full force and effect, enforce such Related Document in accordance
with its terms, take all such action to such end as may be from time to time
requested by the Administrative Agent and, upon request of the Administrative
Agent, make to each other party to each such Related Document such demands and
requests for information and reports or for action as any Loan Party or any of
its Subsidiaries is entitled to make under such Related Document.

Steel Dynamics – Credit Agreement

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

Back to Contents

54

(m)     Preparation of Environmental Reports. At the request of the
Administrative Agent or the Collateral Agent from time to time, provide to the
Lender Parties within 60 days after such request, at the expense of the
Borrower, an environmental site assessment report for any of its or its
Subsidiaries’ properties described in such request, prepared by an environmental
consulting firm acceptable to the Administrative Agent or the Collateral Agent,
indicating the presence or absence of Hazardous Materials and the estimated cost
of any compliance, removal or remedial action in connection with any Hazardous
Materials on such properties; without limiting the generality of the foregoing,
if the Administrative Agent or the Collateral Agent determines at any time that
a material risk exists that any such report will not be provided within the time
referred to above, the Administrative Agent or the Collateral Agent may retain
an environmental consulting firm to prepare such report at the expense of the
Borrower, and the Borrower hereby grants and agrees to cause any Subsidiary that
owns any property described in such request to grant at the time of such request
to the Agents, the Lender Parties, such firm and any agents or representatives
thereof an irrevocable non-exclusive license, subject to the rights of tenants,
to enter onto their respective properties to undertake such an assessment.

(n)     Compliance with Terms of Leaseholds. Make all payments and otherwise
perform all obligations in respect of all leases of real property to which the
Borrower or any of its Subsidiaries is a party, keep such leases in full force
and effect and not allow such leases to lapse or be terminated or any rights to
renew such leases to be forfeited or cancelled, notify the Administrative Agent
of any default by any party with respect to such leases and cooperate with the
Administrative Agent in all respects to cure any such default, and cause each of
its Subsidiaries to do so, except, in any case, where the failure to do so,
either individually or in the aggregate, could not be reasonably likely to have
a Material Adverse Effect.

(o)     Performance of Material Contracts. Perform and observe all the terms and
provisions of each Material Contract to be performed or observed by it, maintain
each such Material Contract in full force and effect, enforce each such Material
Contract in accordance with its terms, take all such action to such end as may
be from time to time requested by the Administrative Agent and, upon request of
the Administrative Agent, make to each other party to each such Material
Contract such demands and requests for information and reports or for action as
any Loan Party or any of its Subsidiaries is entitled to make under such
Material Contract, and cause each of its Subsidiaries to do so, except, in any
case, where the failure to do so, either individually or in the aggregate, could
not be reasonably likely to have a Material Adverse Effect.

SECTION 5.02. Negative Covenants. So long as any Advance or any other Obligation
of any Loan Party under any Loan Document shall remain unpaid, any Letter of
Credit shall be outstanding or any Lender Party shall have any Commitment
hereunder, the Borrower will not, at any time:

(a)     Liens, Etc. Create, incur, assume or suffer to exist, or permit any of
its Subsidiaries to create, incur, assume or suffer to exist, any Lien on or
with respect to any of its properties of any character (including, without
limitation, accounts) whether now owned or hereafter acquired, or sign or file
or suffer to exist, or permit any of its Subsidiaries to sign or file or suffer
to exist, under the Uniform Commercial Code of any jurisdiction, a financing
statement that names the Borrower or any of its Subsidiaries as debtor, or sign
or suffer to exist, or permit any of its Subsidiaries to sign or suffer to
exist, any security agreement authorizing any secured party thereunder to file
such financing statement, or assign, or permit any of its Subsidiaries to
assign, any accounts or other right to receive income, except:

(i)     Liens created under the Loan Documents;

Steel Dynamics – Credit Agreement

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

Back to Contents

55

(ii)     Permitted Liens;

(iii)     Liens existing on the date hereof and described on Schedule 4.01(u)
hereto;

(iv)     purchase money Liens arising from financings upon or in real property
or equipment acquired or held by the Borrower or any of its Subsidiaries in the
ordinary course of business to secure the purchase price of such property or
equipment or to secure Debt incurred solely for the purpose of financing the
acquisition, construction or improvement of any such property or equipment to be
subject to such Liens, or Liens existing on any such property or equipment at
the time of acquisition (other than any such Liens created in contemplation of
such acquisition that do not secure the purchase price), or extensions, renewals
or replacements of any of the foregoing for the same or a lesser amount;
provided, however, that no such Lien shall extend to or cover any property other
than the property or equipment being acquired, constructed or improved, and no
such extension, renewal or replacement shall extend to or cover any property not
theretofore subject to the Lien being extended, renewed or replaced; and
provided further that the Debt secured by Liens permitted by this clause (iv)
shall be permitted under Section 5.02(b)(iii)(B); and

(v)     Liens not otherwise permitted under this Section 5.02(a); provided that
(A) such Liens shall not extend to or cover any Collateral and (B) the book
value of the assets subject to such Liens shall not exceed, in the aggregate,
15% of the book value of the Borrower’s Consolidated property, plant and
equipment, in each case as such book value is determined in accordance with
GAAP.

(b)     Debt. Create, incur, assume or suffer to exist, or permit any of its
Subsidiaries to create, incur, assume or suffer to exist, any Debt, except:

(i)     in the case of the Borrower,

(A)     Debt in respect of Hedge Agreements permitted under Section 5.02(m)
hereof;

(B)     Debt owed to a Subsidiary Guarantor, which Debt (x) shall constitute
Pledged Debt, (y) shall be subordinated to the Facilities and on terms
acceptable to the Administrative Agent and (z) shall be evidenced by promissory
notes in form and substance satisfactory to the Administrative Agent and such
promissory notes shall be pledged as security for the Obligations of the holder
thereof under the Loan Documents to which such holder is a party and delivered
to the Collateral Agent pursuant to the terms of the Security Agreement;

(C)     so long as no Event of Default has occurred and is continuing, or would
result therefrom, (x) other unsecured Debt and (y) Debt secured by Liens
permitted under Section 5.02(a)(v); provided that before and after giving effect
to such Debt, the Borrower is in pro forma compliance with the covenants in
Section 5.04, calculated based on the financial statements most recently
delivered pursuant to Section 5.03 and as though such Debt had been incurred at
the beginning of the four-quarter period covered thereby;

(ii)     in the case of any Subsidiary of the Borrower,

Steel Dynamics – Credit Agreement

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

Back to Contents

56

(A)      Debt owed to the Borrower or to a Subsidiary Guarantor, provided that,
in each case, such Debt (x) shall constitute Pledged Debt, (y) shall be
subordinated to the Facilities and on terms acceptable to the Administrative
Agent and (z) shall be evidenced by promissory notes in form and substance
satisfactory to the Administrative Agent and such promissory notes shall be
pledged as security for the Obligations of the holder thereof under the Loan
Documents to which such holder is a party and delivered to the Collateral Agent
pursuant to the terms of the Security Agreement; and

(B)      so long as no Event of Default has occurred and is continuing or would
result therefrom, other unsecured Debt in an aggregate principal amount not to
exceed $10 million at any one time outstanding;

(iii)      in the case of the Borrower and its Subsidiaries,

(A)      Debt under the Loan Documents,

(B)     so long as no Event of Default has occurred and is continuing, or would
result therefrom, Debt secured by Liens permitted by Section 5.02(a)(iv);
provided, that before and after giving effect to such Debt, the Borrower is in
pro forma compliance with the financial covenants set forth in Section 5.04
hereof calculated based on the financial statements most recently delivered
pursuant to Section 5.03 and as though such Debt was incurred at the beginning
of the four-quarter period covered thereby, and

(C)      the Surviving Debt, and any Debt extending the maturity of, or
refunding or refinancing, in whole or in part, any Surviving Debt, provided that
the terms of any such extending, refunding or refinancing Debt, and of any
agreement entered into and of any instrument issued in connection therewith, are
otherwise permitted by the Loan Documents, provided further that the principal
amount of such Surviving Debt shall not be increased above the principal amount
thereof outstanding immediately prior to such extension, refunding or
refinancing (except by an amount equal to a reasonable premium paid, and
reasonable fees and expenses incurred, in connection with such refinancing), and
the direct and contingent obligors therefor shall not be changed, as a result of
or in connection with such extension, refunding or refinancing, provided still
further that the terms relating to principal amount, amortization, maturity,
collateral (if any) and subordination (if any), and other material terms taken
as a whole, of any such extending, refunding or refinancing Debt, and of any
agreement entered into and of any instrument issued in connection therewith, are
no less favorable in any material respect to the Loan Parties or the Lender
Parties than the terms of any agreement or instrument governing the Surviving
Debt being extended, refunded or refinanced and the interest rate applicable to
any such extending, refunding or refinancing Debt does not exceed the then
applicable market interest rate.

(c)      Change in Nature of Business. Make, or permit any of its Subsidiaries
to make, any material change in the nature of its business as carried on at the
date hereof.

(d)      Mergers, Etc. Merge into or consolidate with any Person or permit any
Person to merge into it, or permit any of its Subsidiaries to do so, except
that:

Steel Dynamics – Credit Agreement

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

Back to Contents

57

(i)     any Subsidiary of the Borrower may merge into or consolidate with the
Borrower (so long as such Subsidiary is a Subsidiary Guarantor) or any other
Subsidiary of the Borrower, provided that, in the case of any such merger or
consolidation, the Person formed by such merger or consolidation shall be a
wholly owned Subsidiary of the Borrower, provided further that, in the case of
any such merger or consolidation to which a Subsidiary Guarantor is a party, the
Person formed by such merger or consolidation shall be a Subsidiary Guarantor;
and

(ii)     in connection with any acquisition permitted under Section 5.02(f), any
Subsidiary of the Borrower may merge into or consolidate with any other Person
or permit any other Person to merge into or consolidate with it; provided that
the Person surviving such merger shall be a wholly owned Subsidiary of the
Borrower and such Person shall become a Subsidiary Guarantor hereunder;

provided, however, that in each case, immediately after giving effect thereto,
no event shall occur and be continuing that constitutes a Default and, in the
case of any such merger to which the Borrower is a party, the Borrower is the
surviving corporation.

(e)     Sales, Etc., of Assets. Sell, lease, transfer or otherwise dispose of,
or permit any of its Subsidiaries to sell, lease, transfer or otherwise dispose
of, any assets, or grant any option or other right to purchase, lease or
otherwise acquire, except:

(i)     sales of Inventory in the ordinary course of its business;

(ii)     in a transaction authorized by Section 5.02(d);

(iii)     so long as no Event of Default has occurred and is continuing or would
occur after giving effect thereto, sales of assets consisting of real property,
plant and equipment for cash and for fair value in an aggregate amount not to
exceed $150,000,000 in each Fiscal Year;

(iv)     sales, transfers and other dispositions of assets among Loan Parties;
and

(v)     sales of assets acquired after the Effective Date that do not constitute
Collateral under the Loan Documents.

(f)     Investments in Other Persons. Make or hold, or permit any of its
Subsidiaries to make or hold, any Investment in any Person, except:

(i)     Investments by (x) the Borrower in Subsidiary Guarantors, (y) Subsidiary
Guarantors in the Borrower and other Subsidiary Guarantors, and (z) the Borrower
or Subsidiary Guarantors in new Subsidiaries, provided, that such Subsidiaries
become Subsidiary Guarantors hereunder;

(ii)     loans and advances to employees in the ordinary course of the business
of the Borrower and its Subsidiaries as presently conducted in an aggregate
principal amount not to exceed $500,000 at any time outstanding;

(iii)     Investments by the Borrower and its Subsidiaries in Cash Equivalents;

Steel Dynamics – Credit Agreement

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

Back to Contents

58

(iv)     Investments existing on the date hereof and described on Schedule
4.01(v) hereto;

(v)     Investments by the Borrower in Hedge Agreements permitted under Section
5.02(b)(i)(A);

(vi)     Investments consisting of intercompany Debt permitted under Section
5.02(b)(i)(B) or 5.02(b)(ii);

(vii)     so long as no Event of Default has occurred and is continuing or would
occur after giving effect thereto, other Investments consisting of acquisitions
of all or substantially all of the Equity Interests or assets of another Person;
provided that with respect to any Investments made under this clause (vii): (1)
if such Investment is in the Equity Interests of such Person, such Person shall
be a Subsidiary Guarantor hereunder; (2)  immediately before and after giving
effect thereto, no Default shall have occurred and be continuing or would result
therefrom; (3) any company or business acquired or invested in pursuant to this
clause (vii) shall be in the same or related line of business as the business of
the Borrower or any of its Subsidiaries; (4) immediately after giving effect to
the acquisition of a company or business pursuant to this clause (vii), the
Borrower shall be in pro forma compliance with the covenants contained in
Section 5.04, calculated based on the financial statements most recently
delivered to the Lender Parties pursuant to Section 5.03 and as though such
acquisition had occurred at the beginning of the four-quarter period covered
thereby, as evidenced by a certificate of the Chief Financial Officer of the
Borrower delivered to the Lender Parties demonstrating such compliance; (5) both
before and after giving effect to any such Investment there is at least
$25,000,000 of availability under the Revolving Credit Facility and (6) within
30 days after the acquisition of a company or business pursuant to this clause
(vii) the Borrower shall provide revised forecasts of the type referred to in
Section 5.03(e) giving pro forma effect to such acquisition;

(viii)     so long as no Event of Default has occurred and is continuing or
would occur after giving effect thereto, Investments in other Persons that are
not controlled by the Borrower up to an aggregate amount of $200,000,000;
provided, that, both before and after giving effect to any such Investment (i)
there is at least $25,000,000 of availability under the Revolving Credit
Facility and (ii) the Borrower is in pro forma compliance with the covenants
contained in Section 5.04, calculated based on the financial statements most
recently delivered to the Lender Parties pursuant to Section 5.03 and as though
such acquisition had occurred at the beginning of the four-quarter period
covered thereby;

(ix)     Investments in Mesabi Nugget; provided, that, both before and after
giving effect to any such Investment (i) there is at least $25,000,000 of
availability under the Revolving Credit Facility and (ii) the Borrower is in pro
forma compliance with the covenants contained in Section 5.04, calculated based
on the financial statements most recently delivered to the Lender Parties
pursuant to Section 5.03 and as though such Investment had occurred at the
beginning of the four-quarter period covered thereby; and

(x)     Investments in Paragon Steel Enterprises LLC up to an aggregate amount
of $25,000,000; provided that, both before and after giving effect to any such
Investment, (i) there is at least $25,000,000 of availability under the
Revolving Credit Facility and (ii) the Borrower is in pro forma compliance with
the covenants contained in Section 5.04, calculated based on the financial
statements most recently delivered to the Lender Parties pursuant to Section
5.03 and as though such acquisition had occurred at the beginning of the
four-quarter period covered thereby.

Steel Dynamics – Credit Agreement

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

Back to Contents

59

(g)     Restricted Payments. Declare or pay any dividends, purchase, redeem,
retire, defease or otherwise acquire for value any of its Equity Interests now
or hereafter outstanding, return any capital to its stockholders, partners or
members (or the equivalent Persons thereof) as such, make any distribution of
assets, Equity Interests, obligations or securities to its stockholders,
partners or members (or the equivalent Persons thereof) as such, or permit any
of its Subsidiaries to do any of the foregoing, or permit any of its
Subsidiaries to purchase, redeem, retire, defease or otherwise acquire for value
any Equity Interests in the Borrower or to issue or sell any Equity Interests or
accept any capital contributions, except that, so long as no Default shall have
occurred and be continuing at the time of any action described in clause (i)
through (iv) below or would result therefrom:

(i)     the Borrower may (A) declare and pay dividends and distributions payable
only in common stock of the Borrower, (B) purchase, redeem, retire, defease or
otherwise acquire shares of its capital stock with the proceeds received
contemporaneously from the issue of new shares of its capital stock with equal
or inferior voting powers, designations, preferences and rights and (C)
purchase, redeem, retire or defease any Debt that is convertible into Equity
Interests,

(ii)     any Subsidiary of the Borrower may (A) declare and pay cash dividends
to the Borrower, (B) declare and pay cash dividends to any other Loan Party of
which it is a Subsidiary and (C) accept capital contributions from its parent to
the extent permitted under Section 5.01(f)(i),

(iii)     the Borrower may make payments restricted by this Section 5.02(g) in
an aggregate amount for all such payments not to exceed, as of any date of
determination, the sum of (A) $156,400,000 plus (B)(x) 50% of the aggregate
amount of Consolidated net income of the Borrower and its Subsidiaries (or minus
(y) 100% of the aggregate amount of Consolidated net loss) from the Closing Date
to the date of the financial statements most recently delivered prior to such
date of determination pursuant to Section 5.03(b) or (c), as the case may be
plus (c) 100% of the proceeds received by the Borrower from issuances of its
common Equity Interests from the Closing Date to the date of the financial
statements most recently delivered prior to such date of determination pursuant
to Section 5.03(b) or (c), as the case may be, provided that after giving effect
to each such payment, (1) no Default shall have occurred and be continuing and
(2) the Borrower shall be in pro forma compliance with the covenants set forth
in Section 5.04, and

(iv)     so long as no Default has occurred and is continuing or would result
therefrom, the Borrower may make payments of contractual dividends on
convertible equity securities.

(h)     Amendments of Constitutive Documents. Amend, or permit any of its
Subsidiaries to amend, its certificate of incorporation or bylaws or other
constitutive documents in any respect which could be materially adverse to the
interest of the Lender Parties.

(i)     Accounting Changes. Make or permit, or permit any of its Subsidiaries to
make or permit, any change in (i) accounting policies or reporting practices,
except as required or permitted by generally accepted accounting principles, or
(ii) Fiscal Year.

Steel Dynamics – Credit Agreement

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

Back to Contents

60

(j)     Amendment, Etc., of Related Documents. Cancel or terminate any Related
Document (except in connection with the prepayment of any Debt permitted to be
prepaid hereunder) or consent to or accept any cancellation or termination
thereof, amend, modify or change in any manner any term or condition of any
Related Document or give any consent, waiver or approval thereunder, waive any
default under or any breach of any term or condition of any Related Document,
agree in any manner to any other amendment, modification or change of any term
or condition of any Related Document or take any other action in connection with
any Related Document that would impair the value of the interest or rights of
any Loan Party thereunder or that would impair the rights or interests of any
Agent or any Lender Party, or permit any of its Subsidiaries to do any of the
foregoing.

(k)     Negative Pledge. Enter into or suffer to exist, or permit any of its
Subsidiaries to enter into or suffer to exist, any agreement prohibiting or
conditioning the creation or assumption of any Lien upon any of its property or
assets except (i) in favor of the Secured Parties or (ii) in connection with (A)
any Surviving Debt, (B) any purchase money Debt permitted by Section
5.02(b)(iii)(B) solely to the extent that the agreement or instrument governing
such Debt prohibits a Lien on the property acquired with the proceeds of such
Debt or (C) any Debt permitted by Section 5.02(b)(i)(C) solely to the extent
that the agreement or instrument governing such Debt prohibits a Lien on the
property securing such Debt.

(l)     Partnerships, Etc. Become a general partner in any general or limited
partnership or joint venture, or permit any of its Subsidiaries to do so, other
than any Subsidiary the sole assets of which consist of its interest in such
partnership or joint venture.

(m)     Speculative Transactions. Engage, or permit any of its Subsidiaries to
engage, in any transaction involving commodity options or futures contracts or
any similar speculative transactions other than in any event transactions
entered into in the ordinary course of business consistent with past practice;
it being understood, however, that the Borrower may engage in interest rate
management transactions that are not speculative so long as the other
requirements of this Agreement are complied with.

(n)     Payment Restrictions Affecting Subsidiaries. Directly or indirectly,
enter into or suffer to exist, or permit any of its Subsidiaries to enter into
or suffer to exist, any agreement or arrangement limiting the ability of any of
its Subsidiaries to declare or pay dividends or other distributions in respect
of its Equity Interests or repay or prepay any Debt owed to, make loans or
advances to, or otherwise transfer assets to or invest in, the Borrower or any
Subsidiary of the Borrower (whether through a covenant restricting dividends,
loans, asset transfers or investments, a financial covenant or otherwise),
except (i) the Loan Documents and (ii) any agreement or instrument evidencing
Surviving Debt.

(o)     Amendment, Etc., of Material Contracts. (i) Cancel or terminate any
Material Contract or consent to or accept any cancellation or termination
thereof, or (ii) amend or otherwise modify any Material Contract or give any
consent, waiver or approval thereunder, waive any default under or breach of any
Material Contract, agree in any manner to any other amendment, modification or
change of any term or condition of any Material Contract or take any other
action in connection with any Material Contract that, in any such case for this
subclause (ii), would impair the value of the interest or rights of any Loan
Party thereunder or that would impair the interest or rights of any Agent or any
Lender Party, or permit any of its Subsidiaries to do any of the foregoing.

Steel Dynamics – Credit Agreement

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

Back to Contents

61

(p)     Borrowing Base Covenant. Permit at any time the aggregate of (i) 85% of
the book value of the accounts receivable that constitute Collateral and (ii)
60% of the book value of the inventory that constitutes Collateral to be less
than the sum of (A) the aggregate principal amount outstanding under the
Revolving Credit Facility at such time (including outstanding Letters of Credit
and Swing Line Advances) plus (B) the aggregate amount of obligations
outstanding under Secured Cash Management Agreements of such time plus (C) the
aggregate Agreement Value of all Secured Hedge Agreements at such time.

SECTION 5.03. Reporting Requirements. So long as any Advance or any other
Obligation of any Loan Party under any Loan Document shall remain unpaid, any
Letter of Credit shall be outstanding or any Lender Party shall have any
Commitment hereunder, the Borrower will furnish to the Agents and the Lender
Parties:

(a)     Default Notice. As soon as possible and in any event within two days
after the occurrence of each Default or any event, development or occurrence
reasonably likely to have a Material Adverse Effect continuing on the date of
such statement, a statement of the chief financial officer of the Borrower
setting forth details of such Default and the action that the Borrower has taken
and proposes to take with respect thereto.

(b)     Annual Financials. As soon as available and in any event within 90 days
after the end of each Fiscal Year, a copy of the annual audit report for such
year for the Borrower and its Subsidiaries, including therein a Consolidated
balance sheet of the Borrower and its Subsidiaries as of the end of such Fiscal
Year and a Consolidated statement of income and a Consolidated statement of cash
flows of the Borrower and its Subsidiaries for such Fiscal Year, in each case
accompanied by an opinion acceptable to the Required Lenders of Ernst & Young
LLP or other independent public accountants of recognized standing acceptable to
the Required Lenders, together with (i) a certificate of such accounting firm to
the Lender Parties stating that in the course of the regular audit of the
business of the Borrower and its Subsidiaries, which audit was conducted by such
accounting firm in accordance with generally accepted auditing standards, such
accounting firm has obtained no knowledge that a Default has occurred and is
continuing, or if, in the opinion of such accounting firm, a Default has
occurred and is continuing, a statement as to the nature thereof, (ii) a
schedule in form satisfactory to the Administrative Agent of the computations
used by such accountants in determining, as of the end of such Fiscal Year,
compliance with the covenants contained in Section 5.04, provided that in the
event of any change in GAAP used in the preparation of such financial
statements, the Borrower shall also provide, if necessary for the determination
of compliance with Section 5.04, a statement of reconciliation conforming such
financial statements to GAAP, and (iii) a certificate of a Financial Officer of
the Borrower stating that no Default has occurred and is continuing or, if a
default has occurred and is continuing, a statement as to the nature thereof and
the action that the Borrower has taken and proposes to take with respect
thereto.

(c)     Quarterly Financials. As soon as available and in any event within 45
days after the end of each of the first three quarters of each Fiscal Year, a
Consolidated balance sheet of the Borrower and its Subsidiaries as of the end of
such quarter and a Consolidated statement of income and a Consolidated statement
of cash flows of the Borrower and its Subsidiaries for the period commencing at
the end of the previous fiscal quarter and ending with the end of such fiscal
quarter and a Consolidated statement of income and a Consolidated statement of
cash flows of the Borrower and its Subsidiaries for the period commencing at the
end of the previous Fiscal Year and ending with the end of such quarter, setting
forth in each case in comparative form the corresponding figures for the
corresponding date or period of the preceding Fiscal Year, all in reasonable
detail and duly certified (subject to normal year-end audit adjustments) by a
Financial Officer of the Borrower as having been prepared in accordance with
GAAP, together with (i) a certificate of said officer stating that no Default
has occurred and is continuing or, if a Default has occurred and is continuing,
a statement as to the nature thereof and the action that the Borrower has taken
and proposes to take with respect thereto, and (ii) a schedule in form
satisfactory to the Administrative Agent of the computations used by the
Borrower in determining compliance with the covenants contained in Section 5.04,
provided that in the event of any change in GAAP used in the preparation of such
financial statements, the Borrower shall also provide, if necessary for the
determination of compliance with Section 5.04, a statement of reconciliation
conforming such financial statements to GAAP.

Steel Dynamics – Credit Agreement

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

Back to Contents

62

(d)     Monthly Certificate. As soon as available and in any event within 15
days after the end of each month, a certificate of a Financial Officer of the
Borrower, in form and substance satisfactory to the Lead Arrangers and the
Administrative Agent, demonstrating that the aggregate of (i) 85% of the book
value of the accounts receivable that constitute Collateral, and (ii) 60% of the
book value of the inventory that constitutes Collateral exceeds the sum of (A)
the aggregate principal amount outstanding under the Revolving Credit Facility
(including outstanding Letters of Credit and Swing Line Advances plus (B) the
aggregate amount of obligations outstanding under Secured Cash Management
Agreements of such time plus (C) the aggregate Agreement Value of all Secured
Hedge Agreements at such time.

(e)     Annual Forecasts. As soon as available and in any event no later than 15
days before the end of each Fiscal Year, forecasts prepared by management of the
Borrower, in form satisfactory to the Administrative Agent, of balance sheets,
income statements and cash flow statements on an annual basis for the Fiscal
Year following such Fiscal Year and for each Fiscal Year thereafter until the
Termination Date. Such forecasts shall set forth a statement of the principal
assumptions reflected therein.

(f)     Litigation. Promptly after the commencement thereof, notice of all
actions, suits, investigations, litigation and proceedings in which the amount
involved is in excess of $10,000,000 before any court or governmental
department, commission, board, bureau, agency or instrumentality, domestic or
foreign, affecting any Loan Party or any of its Subsidiaries of the type
described in Section 4.01(f), and promptly after the occurrence thereof, notice
of any material adverse change in the status or the financial effect on any Loan
Party or any of its Subsidiaries of the Disclosed Litigation from that described
on Schedule 4.01(f) hereto.

(g)     Securities Reports. Promptly after the sending or filing thereof, copies
of all proxy statements, financial statements and reports that any Loan Party or
any of its Subsidiaries sends to its stockholders, and copies of all regular,
periodic and special reports, and all registration statements, that any Loan
Party or any of its Subsidiaries files with the Securities and Exchange
Commission or any governmental authority that may be substituted therefor, or
with any national securities exchange.

(h)     Creditor Reports. (i) Promptly after the furnishing thereof, copies of
any statement or report furnished to any holder of Senior Notes, and (ii)
promptly after the furnishing thereof, copies of any default notice furnished to
any holder of Debt securities in the aggregate outstanding in excess of
$10,000,000 of any Loan Party or of any of its Subsidiaries pursuant to the
terms of any indenture, loan or credit or similar agreement and not otherwise
required to be furnished to the Lender Parties pursuant to any other clause of
this Section 5.03.

Steel Dynamics – Credit Agreement

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

Back to Contents

63

(i)     Agreement Notices. Promptly upon receipt thereof, copies of all notices,
requests and other documents received by any Loan Party or any of its
Subsidiaries under or pursuant to any Related Document or Material Contract or
instrument, indenture, loan or credit or similar agreement regarding or related
to any breach or default by any party thereto or any other event that could
materially impair the value of the interests or the rights of any Loan Party or
otherwise have a Material Adverse Effect and copies of any amendment,
modification or waiver of any provision of any Related Document or Material
Contract or instrument, indenture, loan or credit or similar agreement and, from
time to time upon request by the Administrative Agent, such information and
reports regarding the Related Documents, the Material Contracts and such
instruments, indentures and loan and credit and similar agreements as the
Administrative Agent may reasonably request.

(j)     Revenue Agent Reports. Within 10 days after receipt, copies of all
Revenue Agent Reports (Internal Revenue Service Form 886), or other written
proposals of the Internal Revenue Service, that propose, determine or otherwise
set forth positive adjustments to the Federal income tax liability of the
affiliated group (within the meaning of Section 1504(a)(1) of the Internal
Revenue Code) of which the Borrower is a member aggregating $10,000,000 or more.

(k)     ERISA. (i) ERISA Events and ERISA Reports. (A) Promptly and in any event
within 10 days after any Loan Party or any ERISA Affiliate knows or has reason
to know that any ERISA Event has occurred, a statement of the Chief Financial
Officer of the Borrower describing such ERISA Event and the action, if any, that
such Loan Party or such ERISA Affiliate has taken and proposes to take with
respect thereto and (B) on the date any records, documents or other information
must be furnished to the PBGC with respect to any Plan pursuant to Section 4010
of ERISA, a copy of such records, documents and information.

(ii)     Plan Terminations. Promptly and in any event within two Business Days
after receipt thereof by any Loan Party or any ERISA Affiliate, copies of each
notice from the PBGC stating its intention to terminate any Plan or to have a
trustee appointed to administer any Plan.

(iii)     Plan Annual Reports. Promptly and in any event within 30 days after
the filing thereof with the Internal Revenue Service, copies of each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) with respect to
each Plan.

(iv)     Multiemployer Plan Notices. Promptly and in any event within five
Business Days after receipt thereof by any Loan Party or any ERISA Affiliate
from the sponsor of a Multiemployer Plan, copies of each notice concerning (A)
the imposition of Withdrawal Liability by any such Multiemployer Plan, (B) the
reorganization or termination, within the meaning of Title IV of ERISA, of any
such Multiemployer Plan or (C) the amount of liability incurred, or that may be
incurred, by such Loan Party or any ERISA Affiliate in connection with any event
described in clause (A) or (B).

(l)     Environmental Conditions. Promptly after the assertion or occurrence
thereof, notice of any Environmental Action against or of any noncompliance by
any Loan Party or any of its Subsidiaries with any Environmental Law or
Environmental Permit that could reasonably be expected to have a Material
Adverse Effect.

(m)     Insurance. As soon as available and in any event within 30 days after
the end of each Fiscal Year, a report summarizing the insurance coverage
(specifying type, amount and carrier) in effect for each Loan Party and its
Subsidiaries and containing such additional information as any Agent, or any
Lender Party through the Administrative Agent, may reasonably specify.

Steel Dynamics – Credit Agreement

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

Back to Contents

64

(n)     Other Information. Such other information respecting the business,
condition (financial or otherwise), operations, performance, properties or
prospects of any Loan Party or any of its Subsidiaries as any Agent or the Lead
Arrangers, or any Lender Party through the Administrative Agent, may from time
to time reasonably request.

SECTION 5.04. Financial Covenants. So long as any Advance or any other
Obligation of any Loan Party under any Loan Document shall remain unpaid, any
Letter of Credit shall be outstanding or any Lender Party shall have any
Commitment hereunder, the Borrower will:

(a)     Total Debt to Consolidated EBITDA Ratio. Maintain at all times a Total
Debt/Consolidated EBITDA Ratio of not more than 5:00 : 1.00.

(b)     Senior Secured Debt to Consolidated EBITDA Ratio. Maintain at all times
a Senior Secured Debt/ Consolidated EBITDA Ratio of not more than 3.00 : 1.00

(c)     Interest Coverage Ratio. Maintain at all times an Interest Coverage
Ratio of not less than 2.00 : 1.00.

ARTICLE VI

EVENTS OF DEFAULT

SECTION 6.01. Events of Default. If any of the following events (“Events of
Default”) shall occur and be continuing:

(a)     (i) the Borrower shall fail to pay any principal of any Advance when the
same shall become due and payable or (ii) the Borrower shall fail to pay any
interest on any Advance, or any Loan Party shall fail to make any other payment
under any Loan Document, in each case under this clause (ii) within two Business
Days after the same becomes due and payable; or

(b)     any representation or warranty made by any Loan Party (or any of its
officers) under or in connection with any Loan Document shall prove to have been
incorrect in any material respect when made; or

(c)     the Borrower shall fail to perform or observe any term, covenant or
agreement contained in Section 2.14, 5.01(e), (f), (i), (j), (m) or (p), 5.02,
5.03 or 5.04; provided that the Borrower shall have a cure period of three
Business Days for any failure to perform or observe the covenant contained in
Section 5.02(p); or

(d)     any Loan Party shall fail to perform or observe any other term, covenant
or agreement contained in any Loan Document on its part to be performed or
observed if such failure shall remain unremedied for 10 days after the earlier
of the date on which (i) a Responsible Officer becomes aware of such failure or
(ii) written notice thereof shall have been given to the Borrower by any Agent
or any Lender Party; or

Steel Dynamics – Credit Agreement

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

Back to Contents

65

(e)     any Loan Party, any of its Subsidiaries or any Excluded Subsidiary to
the extent its Obligations are guaranteed by a Loan Party shall fail to pay any
principal of, premium or interest on or any other amount payable in respect of
any Debt of such Loan Party, such Subsidiary or such Excluded Subsidiary (as the
case may be) that is outstanding in a principal amount (or, in the case of any
Hedge Agreement, an Agreement Value) of at least $5,000,000 either individually
or in the aggregate (but excluding Debt outstanding hereunder), when the same
becomes due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), and such failure shall continue after the
applicable grace period, if any, specified in the agreement or instrument
relating to such Debt; or any other event shall occur or condition shall exist
under any agreement or instrument relating to any such Debt and shall continue
after the applicable grace period, if any, specified in such agreement or
instrument, if the effect of such event or condition is to accelerate, or to
permit the acceleration of, the maturity of such Debt or otherwise to cause, or
to permit the holder thereof to cause, such Debt to mature; or any such Debt
shall be declared to be due and payable or required to be prepaid or redeemed
(other than by a regularly scheduled required prepayment or redemption),
purchased or defeased, or an offer to prepay, redeem, purchase or defease such
Debt shall be required to be made, in each case prior to the stated maturity
thereof; or

(f)     any Loan Party or any of its Subsidiaries shall generally not pay its
debts as such debts become due, or shall admit in writing its inability to pay
its debts generally, or shall make a general assignment for the benefit of
creditors; or any proceeding shall be instituted by or against any Loan Party or
any of its Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or
seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief, or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors, or seeking the
entry of an order for relief or the appointment of a receiver, trustee or other
similar official for it or for any substantial part of its property and, in the
case of any such proceeding instituted against it (but not instituted by it)
that is being diligently contested by it in good faith, either such proceeding
shall remain undismissed or unstayed for a period of 30 days or any of the
actions sought in such proceeding (including, without limitation, the entry of
an order for relief against, or the appointment of a receiver, trustee,
custodian or other similar official for, it or any substantial part of its
property) shall occur; or any Loan Party or any of its Subsidiaries shall take
any corporate action to authorize any of the actions set forth above in this
subsection (f); or

(g)     any judgments or orders, either individually or in the aggregate, for
the payment of money in excess of $5,000,000 shall be rendered against any Loan
Party or any of its Subsidiaries and shall remain unpaid and either (i)
enforcement proceedings shall have been commenced by any creditor upon such
judgment or order or (ii) there shall be any period of 10 consecutive days
during which a stay of enforcement of such judgment or order, by reason of a
pending appeal or otherwise, shall not be in effect; or

(h)     any non-monetary judgment or order shall be rendered against any Loan
Party or any of its Subsidiaries that could be reasonably likely to have a
Material Adverse Effect, and there shall be any period of 10 consecutive days
during which a stay of enforcement of such judgment or order, by reason of a
pending appeal or otherwise, shall not be in effect; or

(i)     any provision of any Loan Document after delivery thereof pursuant to
Section 3.01 or 5.01(j) shall for any reason cease to be valid and binding on or
enforceable against any Loan Party party to it, or any such Loan Party shall so
state in writing; or

(j)     any Collateral Document or financing statement after delivery thereof
pursuant to Section 3.01 or 5.01(j) shall for any reason (other than pursuant to
the terms thereof) cease to create a valid and perfected first priority lien on
and security interest in the Collateral purported to be covered thereby; or

(k)     a Change of Control shall occur; or

Steel Dynamics – Credit Agreement

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

Back to Contents

66

(l)     any ERISA Event shall have occurred with respect to a Plan and the sum
(determined as of the date of occurrence of such ERISA Event) of the
Insufficiency of such Plan and the Insufficiency of any and all other Plans with
respect to which an ERISA Event shall have occurred and then exist (or the
liability of the Loan Parties and the ERISA Affiliates related to such ERISA
Event) exceeds $3,000,000; or

(m)      any Loan Party or any ERISA Affiliate shall have been notified by the
sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability to
such Multiemployer Plan in an amount that, when aggregated with all other
amounts required to be paid to Multiemployer Plans by the Loan Parties and the
ERISA Affiliates as Withdrawal Liability (determined as of the date of such
notification), exceeds $3,000,000 or requires payments exceeding $500,000 per
annum; or

(n)     any Loan Party or any ERISA Affiliate shall have been notified by the
sponsor of a Multiemployer Plan that such Multiemployer Plan is in
reorganization or is being terminated, within the meaning of Title IV of ERISA,
and as a result of such reorganization or termination the aggregate annual
contributions of the Loan Parties and the ERISA Affiliates to all Multiemployer
Plans that are then in reorganization or being terminated have been or will be
increased over the amounts contributed to such Multiemployer Plans for the plan
years of such Multiemployer Plans immediately preceding the plan year in which
such reorganization or termination occurs by an amount exceeding $3,000,000;

then, and in any such event, the Administrative Agent (i) shall at the request,
or may with the consent, of the Required Lenders, by notice to the Borrower,
declare the Commitments of each Lender Party and the obligation of each Lender
Party to make Advances (other than Letter of Credit Advances by an Issuing Bank
or a Revolving Credit Lender pursuant to Section 2.03(c) and Swing Line Advances
by a Revolving Credit Lender pursuant to Section 2.02(b)) and of the Issuing
Banks to issue Letters of Credit to be terminated, whereupon the same shall
forthwith terminate, and (ii) shall at the request, or may with the consent, of
the Required Lenders, (A) by notice to the Borrower, declare the Notes, all
interest thereon and all other amounts payable under this Agreement and the
other Loan Documents to be forthwith due and payable, whereupon the Notes, all
such interest and all such amounts shall become and be forthwith due and
payable, without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived by the Borrower, (B) by notice to each
party required under the terms of any agreement in support of which a Standby
Letter of Credit is issued, request that all Obligations under such agreement be
declared to be due and payable and (C) by notice to any Issuing Bank, direct
such Issuing Bank to deliver a Default Termination Notice to the beneficiary of
each Standby Letter of Credit issued by it, and such Issuing Bank shall deliver
such Default Termination Notices; provided, however, that in the event of an
actual or deemed entry of an order for relief with respect to the Borrower under
the Federal Bankruptcy Code, (x) the Commitments of each Lender Party and the
obligation of each Lender Party to make Advances (other than Letter of Credit
Advances by an Issuing Bank or a Revolving Credit Lender pursuant to Section
2.03(c) and Swing Line Advances by a Revolving Credit Lender pursuant to Section
2.02(b)) and of the Issuing Banks to issue Letters of Credit shall automatically
be terminated and (y) the Notes, all such interest and all such amounts shall
automatically become and be due and payable, without presentment, demand,
protest or any notice of any kind, all of which are hereby expressly waived by
the Borrower.

Steel Dynamics – Credit Agreement

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

Back to Contents

67

SECTION 6.02. Actions in Respect of the Letters of Credit upon Default. If any
Event of Default shall have occurred and be continuing, the Administrative Agent
may, or shall at the request of the Required Lenders, irrespective of whether it
is taking any of the actions described in Section 6.01 or otherwise, make demand
upon the Borrower to, and forthwith upon such demand the Borrower will, pay to
the Collateral Agent on behalf of the Lender Parties in same day funds at the
Collateral Agent’s office designated in such demand, for deposit in the L/C Cash
Collateral Account, an amount equal to the aggregate Available Amount of all
Letters of Credit then outstanding. If at any time the Administrative Agent or
the Collateral Agent determines that any funds held in the L/C Cash Collateral
Account are subject to any right or claim of any Person other than the Agents
and the Lender Parties or that the total amount of such funds is less than the
aggregate Available Amount of all Letters of Credit, the Borrower will,
forthwith upon demand by the Administrative Agent or the Collateral Agent, pay
to the Collateral Agent, as additional funds to be deposited and held in the L/C
Cash Collateral Account, an amount equal to the excess of (a) such aggregate
Available Amount over (b) the total amount of funds, if any, then held in the
L/C Cash Collateral Account that the Administrative Agent or the Collateral
Agent, as the case may be, determines to be free and clear of any such right and
claim. Upon the drawing of any Letter of Credit for which funds are on deposit
in the L/C Cash Collateral Account, such funds shall be applied to reimburse the
Issuing Banks or Revolving Credit Lenders, as applicable, to the extent
permitted by applicable law.

ARTICLE VII

THE AGENTS, ETC.

SECTION 7.01. Authorization and Action. Each Lender Party (in its capacities as
a Lender, the Swing Line Bank (if applicable), an Issuing Bank (if applicable)
and on behalf of itself and its Affiliates as potential Hedge Banks) hereby
appoints and authorizes the Lead Arrangers and each Agent to take such action as
agent on its behalf and to exercise such powers and discretion under this
Agreement and the other Loan Documents as are delegated to the Lead Arrangers
and such Agent by the terms hereof and thereof, together with such powers and
discretion as are reasonably incidental thereto. As to any matters not expressly
provided for by the Loan Documents (including, without limitation, enforcement
or collection of the Notes), no Agent nor the Lead Arrangers shall be required
to exercise any discretion or take any action, but shall be required to act or
to refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the instructions of the Required Lenders, and such
instructions shall be binding upon all Lender Parties and all holders of Notes;
provided, however, that no Agent nor the Lead Arrangers shall be required to
take any action that exposes such Agent nor the Lead Arrangers to personal
liability or that is contrary to this Agreement or applicable law. Each Agent
agrees to give to each Lender Party prompt notice of each notice given to it by
the Borrower pursuant to the terms of this Agreement.

SECTION 7.02. Reliance, Etc. Neither the Lead Arrangers nor any Agent nor any of
their respective directors, officers, agents or employees shall be liable for
any action taken or omitted to be taken by it or them under or in connection
with the Loan Documents, except for its or their own gross negligence or willful
misconduct. Without limitation of the generality of the foregoing, the Lead
Arrangers and each Agent: (a) may treat the payee of any Note as the holder
thereof until, in the case of the Administrative Agent, the Administrative Agent
receives and accepts an Assignment and Assumption entered into by the Lender
that is the payee of such Note, as assignor, and an Eligible Assignee, as
assignee, or, in the case of any other Agent or the Lead Arrangers, such Agent
or the Lead Arrangers has received notice from the Administrative Agent that it
has received and accepted such Assignment and Assumption, in each case as
provided in Section 8.07; (b) may consult with legal counsel (including counsel
for any Loan Party), independent public accountants and other experts selected
by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or
experts; (c) makes no warranty or representation to any Lender Party and shall
not be responsible to any Lender Party for any statements, warranties or
representations (whether written or oral) made in or in connection with the Loan
Documents; (d) shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of any
Loan Document on the part of any Loan Party or to inspect the property
(including the books and records) of any Loan Party; (e) shall not be
responsible to any Lender Party for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created
under or in connection with, any Loan Document or any other instrument or
document furnished pursuant thereto; and (f) shall incur no liability under or
in respect of any Loan Document by acting upon any notice, consent, certificate
or other instrument or writing (which may be by telegram, telecopy or telex)
believed by it to be genuine and signed or sent by the proper party or parties.

Steel Dynamics – Credit Agreement

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

Back to Contents

68

SECTION 7.03. Morgan Stanley Senior Funding, Inc., Bank of America, N.A.,
National City Bank and Affiliates. With respect to its Commitments, the Advances
made by it and the Notes issued to it, each of Morgan Stanley Senior Funding,
Inc., Bank of America, N.A. and National City Bank shall have the same rights
and powers under the Loan Documents as any other Lender Party and may exercise
the same as though it were not an Agent; and the term “Lender Party” or “Lender
Parties” shall, unless otherwise expressly indicated, include Morgan Stanley
Senior Funding, Inc., Bank of America, N.A. and National City Bank in their
respective individual capacities. Morgan Stanley Senior Funding, Inc., Bank of
America, N.A. and National City Bank and their respective affiliates may accept
deposits from, lend money to, act as trustee under indentures of, accept
investment banking engagements from and generally engage in any kind of business
with, any Loan Party, any of its Subsidiaries and any Person that may do
business with or own securities of any Loan Party or any such Subsidiary, all as
if Morgan Stanley Senior Funding, Inc., Bank of America, N.A. and National City
Bank were not Agents and without any duty to account therefor to the Lender
Parties.

SECTION 7.04. Lender Party Credit Decision. Each Lender Party acknowledges that
it has, independently and without reliance upon any Agent, the Lead Arrangers or
any other Lender Party and based on the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender Party also acknowledges that it will, independently and
without reliance upon any Agent, the Lead Arrangers or any other Lender Party
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement.

SECTION 7.05. Indemnification. (a) Each Lender Party severally agrees to
indemnify each Lead Arranger and each Agent (to the extent not promptly
reimbursed by the Borrower) from and against such Lender Party’s ratable share
(determined as provided below) of any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever that may be imposed on, incurred by, or
asserted against such Agent in any way relating to or arising out of the Loan
Documents or any action taken or omitted by such Agent under the Loan Documents
(collectively, the “Indemnified Costs”); provided, however, that no Lender Party
shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from such Agent’s or such Lead Arranger’s gross negligence or willful
misconduct as found in a final, non-appealable judgment by a court of competent
jurisdiction with respect to such Agent or the Lead Arrangers, as the case may
be. Without limitation of the foregoing, each Lender Party agrees to reimburse
the Lead Arrangers and each Agent promptly upon demand for its ratable share of
any costs and expenses (including, without limitation, fees and expenses of
counsel) payable by the Borrower under Section 8.04, to the extent that such
Lead Arranger or such Agent is not promptly reimbursed for such costs and
expenses by the Borrower. In the case of any investigation, litigation or
proceeding giving rise to any Indemnified Costs, this Section 7.05 applies
whether any such investigation, litigation or proceeding is brought by any
Lender Party or any other Person.

Steel Dynamics – Credit Agreement

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

Back to Contents

69

(b)      Each Lender Party severally agrees to indemnify each Issuing Bank (to
the extent not promptly reimbursed by the Borrower) from and against such Lender
Party’s ratable share (determined as provided below) of any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever that may be imposed
on, incurred by, or asserted against such Issuing Bank in any way relating to or
arising out of the Loan Documents or any action taken or omitted by such Issuing
Bank under the Loan Documents; provided, however, that no Lender Party shall be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting
from such Issuing Bank’s gross negligence or willful misconduct as found in a
final, non-appealable judgment by a court of competent jurisdiction. Without
limitation of the foregoing, each Lender Party agrees to reimburse such Issuing
Bank promptly upon demand for its ratable share of any costs and expenses
(including, without limitation, fees and expenses of counsel) payable by the
Borrower under Section 8.04, to the extent that such Issuing Bank is not
promptly reimbursed for such costs and expenses by the Borrower.

(c)      For purposes of this Section 7.05, the Lender Parties’ respective
ratable shares of any amount shall be determined, at any time, according to the
sum of (i) the aggregate principal amount of the Advances outstanding at such
time and owing to the respective Lender Parties, (ii) their respective Pro Rata
Shares of the aggregate Available Amount of all Letters of Credit outstanding at
such time and (iii) their respective Unused Revolving Credit Commitments at such
time; provided that the aggregate principal amount of Swing Line Advances owing
to the Swing Line Bank and of Letter of Credit Advances owing to such Issuing
Bank shall be considered to be owed to the Revolving Credit Lenders ratably in
accordance with their respective Revolving Credit Commitments. The failure of
any Lender Party to reimburse any Agent or any Issuing Bank, as the case may be,
promptly upon demand for its ratable share of any amount required to be paid by
the Lender Parties to such Agent or such Issuing Bank, as the case may be, as
provided herein shall not relieve any other Lender Party of its obligation
hereunder to reimburse such Agent or such Issuing Bank, as the case may be, for
its ratable share of such amount, but no Lender Party shall be responsible for
the failure of any other Lender Party to reimburse such Agent or such Issuing
Bank, as the case may be, for such other Lender Party’s ratable share of such
amount. Without prejudice to the survival of any other agreement of any Lender
Party hereunder, the agreement and obligations of each Lender Party contained in
this Section 7.05 shall survive the payment in full of principal, interest and
all other amounts payable hereunder and under the other Loan Documents.

SECTION 7.06. Successor Agents. Any Agent may resign at any time by giving
written notice thereof to the Lender Parties and the Borrower and may be removed
at any time with or without cause by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint a
successor Agent. If no successor Agent shall have been so appointed by the
Required Lenders, and shall have accepted such appointment, within 30 days after
the retiring Agent’s giving of notice of resignation or the Required Lenders’
removal of the retiring Agent, then the retiring Agent may, on behalf of the
Lender Parties, appoint a successor Agent, which shall be a commercial bank
organized under the laws of the United States or of any State thereof and having
a combined capital and surplus of at least $250,000,000. Upon the acceptance of
any appointment as Agent hereunder by a successor Agent and, in the case of a
successor Collateral Agent, upon the execution and filing or recording of such
financing statements, or amendments thereto, and such other instruments or
notices, as may be necessary or desirable, or as the Required Lenders may
request, in order to continue the perfection of the Liens granted or purported
to be granted by the Collateral Documents, such successor Agent shall succeed to
and become vested with all the rights, powers, discretion, privileges and duties
of the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations under the Loan Documents. If within 45 days after written
notice is given of the retiring Agent’s resignation or removal under this
Section 7.06 no successor Agent shall have been appointed and shall have
accepted such appointment, then on such 45th day (a) the retiring Agent’s
resignation or removal shall become effective, (b) the retiring Agent shall
thereupon be discharged from its duties and obligations under the Loan Documents
(except in the case of any collateral security held by any Agent on behalf of
the Secured Parties under any of the Loan Documents, the retiring Agent shall
continue to hold such collateral security until such time as a successor Agent
is appointed) and (c) the Required Lenders shall thereafter perform all duties
of the retiring Agent under the Loan Documents until such time, if any, as the
Required Lenders appoint a successor Agent as provided above. After any retiring
Agent’s resignation or removal hereunder as Agent shall have become effective,
the provisions of this Article VII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Agent under this Agreement.

Steel Dynamics – Credit Agreement

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

Back to Contents

70

SECTION 7.07. The Lead Arrangers, the Syndication Agent and the Documentation
Agent. It is understood and agreed by all parties hereto that neither the Lead
Arrangers, nor the Syndication Agent, nor the Documentation Agent shall have any
duties or responsibilities under this Agreement (except, as to the Lead
Arrangers, for certain approval rights expressly provided for herein), and shall
have no liability for any actions taken or not taken in connection with this
Agreement or the other Transaction Documents.

ARTICLE VIII

MISCELLANEOUS

SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of this
Agreement or the Notes or any other Loan Document, nor consent to any departure
by any Loan Party therefrom, shall in any event be effective unless the same
shall be in writing and signed (or, in the case of the Collateral Documents,
consented to) by the Required Lenders, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that (a) no amendment, waiver or consent shall, unless
in writing and signed by all of the Lenders (other than any Lender Party that
is, at such time, a Defaulting Lender), do any of the following at any time: (i)
decrease the percentage of (x) the Commitments, (y) the aggregate unpaid
principal amount of the Advances or (z) the aggregate Available Amount of
outstanding Letters of Credit that, in each case, shall be required for the
Lenders or any of them to take any action hereunder, (ii) reduce or limit the
obligations of any Guarantor under Section 1 of the Guaranty issued by it or,
except in connection with a permitted asset sale, release such Guarantor or
otherwise limit such Guarantor’s liability with respect to the Obligations owing
to the Agents and the Lender Parties, (iii) release all or a substantial portion
of the Collateral in any transaction or series of related transactions or permit
the creation, incurrence, assumption or existence of any Lien on all or
substantially all of the Collateral in any transaction or series of related
transactions to secure any Obligations other than Obligations owing to the
Secured Parties under the Loan Documents, (iv) amend Section 2.13 or this
Section 8.01 and (b) no amendment, waiver or consent shall, unless in writing
and signed by each Lender (other than any Lender that is, at such time, a
Defaulting Lender) that has a Commitment under the Revolving Credit Facility if
such Lender is directly affected by such amendment, waiver or consent, (i)
increase the Commitments of such Lender, (ii) reduce the principal of, or
interest on, the Notes held by such Lender or any fees or other amounts payable
hereunder to such Lender, (iii) postpone any date fixed for any scheduled
payment of principal of, or interest on, the Notes held by such Lender or any
fees or other amounts payable hereunder to such Lender, (iv) change the order of
application of any prepayment set forth in Section 2.06 in any manner that
materially affects such Lender; provided further that no amendment, waiver or
consent shall, unless in writing and signed by the Swing Line Bank or an Issuing
Bank, as the case may be, in addition to the Lenders required above to take such
action, affect the rights or obligations of the Swing Line Bank or of such
Issuing Bank, as the case may be, under this Agreement; and provided further
that no amendment, waiver or consent shall, unless in writing and signed by an
Agent in addition to the Lenders required above to take such action, affect the
rights or duties of such Agent under this Agreement or the other Loan Documents.

Steel Dynamics – Credit Agreement

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

Back to Contents

71

SECTION 8.02. Notices, Etc.  (a)  All notices and other communications provided
for hereunder shall be in writing (including telegraphic, telecopy or telex
communication) and mailed, telegraphed, telecopied, telexed or delivered, if to
the Borrower, at its address at 6714 Pointe Inverness Way, Fort Wayne, Indiana
46804, Attention: Gary Heasley (facsimile [ ________ ]); if to any Initial
Lender Party, at its Domestic Lending Office specified opposite its name on
Schedule I hereto; if to any other Lender Party, at its Domestic Lending Office
specified in the Assignment and Assumption pursuant to which it became a Lender
Party; if to the Collateral Agent, at its address at [
_____________________________________ ]; and if to the Administrative Agent, at
its address at [ _________________________________________ ]; or, as to the
Borrower or the Administrative Agent, at such other address as shall be
designated by such party in a written notice to the other parties and, as to
each other party, at such other address as shall be designated by such party in
a written notice to the Borrower and the Administrative Agent. All such notices
and other communications shall, when mailed, telegraphed, telecopied or telexed,
be effective when deposited in the mails, delivered to the telegraph company,
transmitted by telecopier or confirmed by telex answerback, respectively, except
that notices and communications to any Agent pursuant to Article II, III or VII
shall not be effective until received by such Agent. Delivery by telecopier of
an executed counterpart of any amendment or waiver of any provision of this
Agreement or the Notes or of any Exhibit hereto to be executed and delivered
hereunder shall be effective as delivery of an original executed counterpart
thereof.

(b)      Notices and other communications to the Lender Parties hereunder may be
delivered or furnished by electronic communications pursuant to procedures
approved by the Administrative Agent; provided that the foregoing shall not
apply to notices pursuant to Article II unless otherwise agreed by the
Administrative Agent and the applicable Lender. The Administrative Agent or the
Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may be
limited to particular notices or communications.

SECTION 8.03.  No Waiver; Remedies.    No failure on the part of any Lender
Party or any Agent to exercise, and no delay in exercising, any right hereunder
or under any Note or any other Loan Document shall operate as a waiver thereof;
nor shall any single or partial exercise of any such right preclude any other or
further exercise thereof or the exercise of any other right. The remedies
provided in the Loan Documents are cumulative and not exclusive of any remedies
provided by law.

SECTION 8.04.  Costs and Expenses.  (a)  The Borrower agrees to pay on demand
(i) all costs and expenses of the Lead Arrangers and, after the Initial
Extension of Credit, and except as otherwise provided in this Agreement, also
each Agent in connection with the preparation, execution, delivery,
administration, modification and amendment of the Loan Documents (including,
without limitation, (A) all due diligence, collateral review, syndication,
transportation, computer, duplication, appraisal, audit, insurance, consultant,
search, filing and recording fees and expenses and (B) the reasonable fees and
expenses of counsel for the Lead Arrangers and, after the Initial Extension of
Credit, also each Agent with respect thereto, including the reasonable fees and
expenses of Shearman & Sterling LLP with respect to advising the Lead Arrangers
or such Agent as to its rights and responsibilities, or the perfection,
protection or preservation of rights or interests, under the Loan Documents,
with respect to negotiations with any Loan Party or with other creditors of any
Loan Party or any of its Subsidiaries arising out of any Default or any events
or circumstances that may give rise to a Default and with respect to presenting
claims in or otherwise participating in or monitoring any bankruptcy, insolvency
or other similar proceeding involving creditors’ rights generally and any
proceeding ancillary thereto, it being understood and agreed that with respect
to the payment of legal fees and expenses, unless and until the circumstances
set forth in clause (ii) below shall occur, the Borrower shall only be
responsible for the fees and expenses of Shearman & Sterling LLP and any local
counsel selected by it in connection with any and all of the foregoing), and
(ii) all costs and expenses of each of the Lead Arrangers, each Agent and each
Lender Party in connection with the enforcement of and/or the protection of its
rights under the Loan Documents and Advances made and Letters of Credit issued
hereunder, whether in any action, suit or litigation, or any bankruptcy,
insolvency or other similar proceeding affecting creditors’ rights generally, or
any workout, restructuring or negotiations in respect of the Loan Documents,
such Advances or such Letters of Credit (including, without limitation, the
reasonable fees and expenses of counsel for each of the Lead Arrangers, the
Administrative Agent and each Lender Party with respect thereto).

Steel Dynamics – Credit Agreement

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

Back to Contents

72

(b)     The Borrower agrees to indemnify, defend and save and hold harmless each
of the Lead Arrangers, each Agent, each Lender Party and each of their
Affiliates and their respective partners, officers, directors, employees, agents
and advisors (each, an “Indemnified Party”) from and against, and shall pay on
demand, any and all claims, damages, losses, liabilities and expenses
(including, without limitation, reasonable fees and expenses of counsel) that
may be incurred by or asserted or awarded against any Indemnified Party, in each
case arising out of or in connection with or by reason of (including, without
limitation, in connection with any actual or prospective claim, investigation,
litigation or proceeding or preparation of a defense in connection therewith)
(i) the Facilities, the actual or proposed use of the proceeds of the Advances
or the Letters of Credit, the Transaction Documents, the performance by the
parties hereto of their respective obligations hereunder or thereunder or any of
the transactions contemplated thereby or (ii) the actual or alleged presence or
release of Hazardous Materials on any property owned or operated by any Loan
Party or any of its Subsidiaries or any Environmental Action relating in any way
to any Loan Party or any of its Subsidiaries, except to the extent such claim,
damage, loss, liability or expense is found in a final, non-appealable judgment
by a court of competent jurisdiction to have resulted from such Indemnified
Party’s gross negligence or willful misconduct. In the case of an investigation,
litigation or other proceeding to which the indemnity in this Section 8.04(b)
applies, such indemnity shall be effective whether or not such investigation,
litigation or proceeding is brought by any Loan Party, its directors,
shareholders or creditors or an Indemnified Party, whether or not any
Indemnified Party is otherwise a party thereto and whether or not the
Transaction is consummated. The Borrower also agrees not to assert, and hereby
waives, any claim against any Lead Arranger, Agent, any Lender Party or any of
their Affiliates, or any of their respective partners, officers, directors,
employees, agents and advisors, on any theory of liability, for special,
indirect, consequential or punitive damages arising out of or otherwise relating
to the Facilities, the actual or proposed use of the proceeds of the Advances or
the Letters of Credit, the Transaction Documents or any of the transactions
contemplated by the Transaction Documents. No Indemnified Party shall be liable
for any damages arising from the use by unintended recipients of any information
or other materials distributed by it through telecommunications, electronic or
other information transmission systems in connection with this Agreement or the
other Loan Documents or the transactions contemplated hereby or thereby.

(c)     If any payment of principal of, or Conversion of, any Eurodollar Rate
Advance is made by the Borrower to or for the account of a Lender Party other
than on the last day of the Interest Period for such Advance, as a result of a
payment or Conversion pursuant to Section 2.06, 2.09(b)(i) or 2.10(d),
acceleration of the maturity of the Notes pursuant to Section 6.01 or for any
other reason, or by an Eligible Assignee to a Lender Party other than on the
last day of the Interest Period for such Advance upon an assignment of rights
and obligations under this Agreement pursuant to Section 8.07 as a result of a
demand by the Borrower pursuant to Section 8.07(a), or if the Borrower fails to
make any payment or prepayment of an Advance for which a notice of prepayment
has been given or that is otherwise required to be made, whether pursuant to
Section 2.04, 2.06 or 6.01 or otherwise, the Borrower shall, upon demand by such
Lender Party (with a copy of such demand to the Administrative Agent), pay to
the Administrative Agent for the account of such Lender Party any amounts
required to compensate such Lender Party for any additional losses, costs or
expenses that it may incur as a result of such payment or Conversion or such
failure to pay or prepay, as the case may be, including, without limitation, any
loss (including loss of anticipated profits), cost or expense incurred by reason
of the liquidation or reemployment of deposits or other funds acquired by any
Lender Party to fund or maintain such Advance.

Steel Dynamics – Credit Agreement

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

Back to Contents

73

(d)     If any Loan Party fails to pay when due any costs, expenses or other
amounts payable by it under any Loan Document, including, without limitation,
fees and expenses of counsel and indemnities, such amount may be paid on behalf
of such Loan Party by the Administrative Agent or any Lender Party, in its sole
discretion.

(e)     Without prejudice to the survival of any other agreement of any Loan
Party hereunder or under any other Loan Document, the agreements and obligations
of the Borrower contained in Sections 2.10 and 2.12 and this Section 8.04 shall
survive the payment in full of principal, interest and all other amounts payable
hereunder and under any of the other Loan Documents.

SECTION 8.05.  Right of Set-off.  Upon (a) the occurrence and during the
continuance of any Event of Default and (b) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the
Administrative Agent to declare the Notes due and payable pursuant to the
provisions of Section 6.01, each Agent and each Lender Party and each of their
respective Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and otherwise apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held and other indebtedness at any time owing by such Agent, such Lender Party
or such Affiliate to or for the credit or the account of the Borrower against
any and all of the Obligations of the Borrower now or hereafter existing under
the Loan Documents, irrespective of whether such Agent or such Lender Party
shall have made any demand under this Agreement or such Note or Notes and
although such Obligations may be unmatured. Each Agent and each Lender Party
agrees promptly to notify the Borrower after any such set-off and application;
provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Agent and each
Lender Party and their respective Affiliates under this Section are in addition
to other rights and remedies (including, without limitation, other rights of
set-off) that such Agent, such Lender Party and their respective Affiliates may
have.

SECTION 8.06. Binding Effect. This Agreement shall become effective when it
shall have been executed by the Borrower and each Agent and the Administrative
Agent shall have been notified by each Initial Lender Party that such Initial
Lender Party has executed it and thereafter shall be binding upon and inure to
the benefit of the Borrower, each Agent and each Lender Party and their
respective successors and assigns, except that the Borrower shall not have the
right to assign its rights hereunder or any interest herein without the prior
written consent of the Lender Parties.

SECTION 8.07. Assignments and Participations.  (a)  Each Lender may, and
(following a demand by such Lender pursuant to Section 2.10 or 2.12) upon at
least five Business Days’ notice to such Lender and the Administrative Agent,
will assign to one or more Eligible Assignees all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a
portion of its Commitment or Commitments, the Advances owing to it and the Note
or Notes held by it); provided, however, that (i) each such assignment shall be
of a uniform, and not a varying, percentage of all rights and obligations under
and in respect of one or more Facilities, (ii) except in the case of an
assignment to a Person that, immediately prior to such assignment, was a Lender,
an Affiliate of any Lender or an Approved Fund of any Lender or an assignment of
all of a Lender’s rights and obligations under this Agreement, the aggregate
amount of the Commitments being assigned to such Eligible Assignee pursuant to
such assignment (determined as of the date of the Assignment and Assumption with
respect to such assignment) shall in no event be less than $1,000,000 (or such
lesser amount as shall be approved by the Administrative Agent and, so long as
no Default shall have occurred and be continuing at the time of effectiveness of
such assignment, the Borrower), (iii) each such assignment shall be to an
Eligible Assignee, and (iv) the parties to each such assignment shall execute
and deliver to the Administrative Agent, for its acceptance (other than as to
assignments to then existing Lenders and/or their Affiliates) and recording in
the Register, an Assignment and Assumption, together with any Note or Notes
subject to such assignment and together with a processing and recordation fee in
the amount of $3,500; provided, however, that the processing and recordation fee
set forth in subclause (iv) above shall not be payable (A) with respect to an
assignment by any Lender Party to an Affiliate or an Approved Fund of such
Lender Party, or (B) with respect to an assignment (x) which is both by and to
an existing Lender Party or (y) with a stated effective date occurring prior to
the 90th day after the Effective Date hereof.

Steel Dynamics – Credit Agreement

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

Back to Contents

74

(b)     Upon such execution, delivery, acceptance and recording, from and after
the effective date specified in such Assignment and Assumption, (i) the assignee
thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Assumption, have the rights and obligations of a Lender or an Issuing Bank, as
the case may be, hereunder and (ii) the Lender or an Issuing Bank assignor
thereunder shall, to the extent that rights and obligations hereunder have been
assigned by it pursuant to such Assignment and Assumption, relinquish its rights
(other than its rights under Sections 2.10, 2.12 and 8.04 to the extent any
claim thereunder relates to an event arising prior to such assignment) and be
released from its obligations under this Agreement (and, in the case of an
Assignment and Assumption covering all of the remaining portion of an assigning
Lender’s or an Issuing Bank’s rights and obligations under this Agreement, such
Lender or such Issuing Bank shall cease to be a party hereto).

(c)     By executing and delivering an Assignment and Assumption, each Lender
Party assignor thereunder and each assignee thereunder confirm to and agree with
each other and the other parties thereto and hereto as follows: (i) other than
as provided in such Assignment and Assumption, such assigning Lender Party makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with any Loan
Document or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of, or the perfection or priority of any lien or security
interest created or purported to be created under or in connection with, any
Loan Document or any other instrument or document furnished pursuant thereto;
(ii) such assigning Lender Party makes no representation or warranty and assumes
no responsibility with respect to the financial condition of any Loan Party or
the performance or observance by any Loan Party of any of its obligations under
any Loan Document or any other instrument or document furnished pursuant
thereto; (iii) such assignee confirms that it has received a copy of this
Agreement, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Assumption; (iv) such assignee will, independently and without
reliance upon any Agent, such assigning Lender Party or any other Lender Party
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement; (v) such assignee confirms that it is an Eligible
Assignee; (vi) such assignee appoints and authorizes each Agent to take such
action as agent on its behalf and to exercise such powers and discretion under
the Loan Documents as are delegated to such Agent by the terms hereof and
thereof, together with such powers and discretion as are reasonably incidental
thereto; and (vii) such assignee agrees that it will perform in accordance with
their terms all of the obligations that by the terms of this Agreement are
required to be performed by it as a Lender or an Issuing Bank, as the case may
be.

(d)      The Administrative Agent shall maintain at its address referred to in
Section 8.02 a copy of each Assignment and Assumption delivered to and accepted
by it and a register for the recordation of the names and addresses of the
Lender Parties and the Commitment under each Facility of, and principal amount
of the Advances owing under each Facility to, each Lender Party from time to
time (the “Register”). The entries in the Register shall be conclusive and
binding for all purposes, absent manifest error, and the Borrower, the Agents
and the Lender Parties may treat each Person whose name is recorded in the
Register as a Lender Party hereunder for all purposes of this Agreement. The
Register shall be available for inspection by the Borrower or any Agent or any
Lender Party at any reasonable time and from time to time upon reasonable prior
notice.

Steel Dynamics – Credit Agreement

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

Back to Contents

75

(e)      Upon its receipt of an Assignment and Assumption executed by an
assigning Lender Party and an assignee, together with any Note or Notes subject
to such assignment, the Administrative Agent shall, if such Assignment and
Assumption has been completed and is in substantially the form of Exhibit C
hereto, (i) accept such Assignment and Assumption, (ii) record the information
contained therein in the Register and (iii) give prompt notice thereof to the
Borrower and each other Agent. In the case of any assignment by a Lender, within
five Business Days after its receipt of such notice, the Borrower, at its own
expense, shall execute and deliver to the Administrative Agent in exchange for
the surrendered Note or Notes a new Note to the order of such Eligible Assignee
in an amount equal to the Commitment assumed by it under each Facility pursuant
to such Assignment and Assumption and, if any assigning Lender has retained a
Commitment hereunder under such Facility, a new Note to the order of such
assigning Lender in an amount equal to the Commitment retained by it hereunder.
Such new Note or Notes shall be in an aggregate principal amount equal to the
aggregate principal amount of such surrendered Note or Notes, shall be dated the
effective date of such Assignment and Assumption and shall otherwise be in
substantially the form of Exhibit A hereto.

(f)     Each Issuing Bank may assign to an Eligible Assignee all or a portion of
its rights and obligations under the undrawn portion of its Letter of Credit
Commitment at any time; provided, however, that each such assignment shall be to
an Eligible Assignee and the parties to each such assignment shall execute and
deliver to the Administrative Agent, for its acceptance and recording in the
Register, an Assignment and Assumption.

(g)      Each Lender Party may sell participations to one or more Persons (other
than any Loan Party or any of its Affiliates) in or to all or a portion of its
rights and obligations under this Agreement (including, without limitation, all
or a portion of its Commitments, the Advances owing to it and the Note or Notes
(if any) held by it); provided, however, that (i) such Lender Party’s
obligations under this Agreement (including, without limitation, its
Commitments) shall remain unchanged, (ii) such Lender Party shall remain solely
responsible to the other parties hereto for the performance of such obligations,
(iii) such Lender Party shall remain the holder of any such Note for all
purposes of this Agreement, (iv) the Borrower, the Agents and the other Lender
Parties shall continue to deal solely and directly with such Lender Party in
connection with such Lender Party’s rights and obligations under this Agreement
and (v) no participant under any such participation shall have any right to
approve any amendment or waiver of any provision of any Loan Document, or any
consent to any departure by any Loan Party therefrom, except to the extent that
such amendment, waiver or consent would reduce the principal of, or interest on,
the Notes or any fees or other amounts payable hereunder, in each case to the
extent subject to such participation, postpone any date fixed for any payment of
principal of, or interest on, the Notes or any fees or other amounts payable
hereunder, in each case to the extent subject to such participation, or release
all or substantially all of the Collateral.

(h)      Any Lender Party may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
8.07, disclose to the assignee or participant or proposed assignee or
participant any information relating to the Borrower furnished to such Lender
Party by or on behalf of the Borrower; provided, however, that, prior to any
such disclosure, the assignee or participant or proposed assignee or participant
shall agree to preserve the confidentiality of any Confidential Information
received by it from such Lender Party.

(i)      Notwithstanding any other provision set forth in this Agreement, any
Lender Party may at any time create a security interest in all or any portion of
its rights under this Agreement (including, without limitation, the Advances
owing to it and the Note or Notes held by it) in favor of any Federal Reserve
Bank in accordance with Regulation A of the Board of Governors of the Federal
Reserve System.

Steel Dynamics – Credit Agreement

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

Back to Contents

76

SECTION 8.08. Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of a signature page to this Agreement by telecopier shall
be effective as delivery of an original executed counterpart of this Agreement.

SECTION 8.09. No Liability of the Issuing Banks. The Borrower assumes all risks
of the acts or omissions of any beneficiary or transferee of any Letter of
Credit with respect to its use of such Letter of Credit. Neither the Agents, the
Lenders nor any Issuing Bank nor any of their respective officers or directors
shall be liable or responsible for: (a) the use that may be made of any Letter
of Credit or any acts or omissions of any beneficiary or transferee in
connection therewith; (b) the validity, sufficiency or genuineness of documents,
or of any endorsement thereon, even if such documents should prove to be in any
or all respects invalid, insufficient, fraudulent or forged; (c) payment by such
Issuing Bank against presentation of documents that do not comply with the terms
of a Letter of Credit, including failure of any documents to bear any reference
or adequate reference to the Letter of Credit; (d) any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), or any error in interpretation
of technical terms therein; or (e) any other circumstances whatsoever in making
or failing to make payment under any Letter of Credit, except that the Borrower
shall have a claim against such Issuing Bank, and such Issuing Bank shall be
liable to the Borrower, to the extent of any direct, but not consequential,
damages suffered by the Borrower that the Borrower proves were caused by (i)
such Issuing Bank’s willful misconduct or gross negligence as determined in a
final, non-appealable judgment by a court of competent jurisdiction in
determining whether documents presented under any Letter of Credit comply with
the terms of the Letter of Credit or (ii) such Issuing Bank’s willful failure to
make lawful payment under a Letter of Credit after the presentation to it of a
draft and certificates strictly complying with the terms and conditions of the
Letter of Credit. In furtherance of the foregoing and without limiting the
generality thereof, the parties agree that, with respect to documents presented
which appear on their face to be in substantial compliance with the terms of a
Letter of Credit, such Issuing Bank may, in its sole discretion, either accept
and make payment upon such documents without responsibility for further
investigation, regardless of any notice or information to the contrary, or
refuse to accept and make payment upon such documents if such documents are not
in strict compliance with the terms of such Letter of Credit.

SECTION 8.10. Confidentiality. Each Agent and each Lender Party shall hold all
information supplied by the Borrower or any of its Subsidiaries that is marked
confidential (the “Confidential Information”) confidential in accordance with
its customary practices for handling confidential information, provided that, in
any event, disclosure may be made without the consent of the Borrower, (a) to
such Agent’s or such Lender Party’s Affiliates and their officers, directors,
employees, agents and advisors and to actual or prospective Eligible Assignees
and participants, and then only on a confidential basis, (b) as required by any
law, rule or regulation or judicial process, (c) as requested or required by any
state, Federal or foreign authority or examiner regulating such Lender Party or
any of its Affiliates and (d) to any rating agency when required by it, provided
that, prior to any such disclosure, such rating agency shall undertake to
preserve the confidentiality of any Confidential Information relating to the
Loan Parties received by it from such Lender Party.

SECTION 8.11. Release of Collateral. Upon the sale, lease, transfer or other
disposition of any item of Collateral of any Loan Party (including, without
limitation, as a result of the sale, in accordance with the terms of the Loan
Documents, of the Loan Party that owns such Collateral) in accordance with the
terms of the Loan Documents, the Collateral Agent will, and the Lender Parties
hereby authorize the Collateral Agent to, all at the Borrower’s expense, execute
and deliver to such Loan Party such documents as such Loan Party may reasonably
request to evidence the release of such item of Collateral from the assignment
and security interest granted under the Collateral Documents in accordance with
the terms of the Loan Documents.

Steel Dynamics – Credit Agreement

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

Back to Contents

77

SECTION 8.12. Jurisdiction, Etc. (a) Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or Federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement or any of the other Loan Documents to which it is a party, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York State
court or, to the fullest extent permitted by law, in such Federal court. The
Borrower hereby agrees that service of process in any such action or proceeding
brought in any such New York state court or in such federal court may be made
upon CT Corporation System at its offices at 111 Eighth Avenue, 13th Floor, New
York, New York 10011 (the “Process Agent”) and the Borrower hereby irrevocably
appoints the Process Agent its authorized agent to accept such service of
process, and agrees that the failure of the Process Agent to give any notice of
any such service shall not impair or affect the validity of such service or of
any judgment rendered in any action or proceeding based thereon. The Borrower
hereby further irrevocably consents to the service of process in any action or
proceeding in such courts by the mailing thereof by any parties hereto by
registered or certified mail, postage prepaid, to the Borrower at its address
specified pursuant to Section 8.02. Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law. Nothing in this Agreement shall affect any right that any party
may otherwise have to bring any action or proceeding relating to this Agreement
or any of the other Loan Documents in the courts of any jurisdiction.

(b)      Each of the parties hereto irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection that it
may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or any of the other Loan
Documents to which it is a party in any New York State or Federal court. Each of
the parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

SECTION 8.13. Governing Law. Each Loan Document (other than the Letters of
Credit, to the extent specified below and except as otherwise expressly set
forth in a Loan Document) will each be deemed to be a contract made under and
governed by the laws of the State of New York (including for such purpose
Section 5-1407 and 5-1402 of the General Obligations Law of the State of New
York). Each Letter of Credit shall be governed by, and construed in accordance
with, the laws or rules designated in such Letter of Credit or the related
Letter of Credit Agreement, or if no laws or rules are designated, the
International Standby Practices (ISP98 – International Chamber of Commerce
Publication Number 590 (the “ISP Rules”)) and, as to matters not governed by the
ISP Rules, the internal laws of the State of New York. The Loan Documents
constitute the entire understanding among the parties hereto with respect to the
subject matter thereof and supersede any prior agreements, written or oral, with
respect thereto.

SECTION 8.14. Patriot Act Notice. Each Lender hereby notifies each Loan Party
that, pursuant to the requirements of the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, Pub. L. 107-56 (the “Patriot Act”), it is required to obtain, verify and
record information that identifies each Loan Party, which information includes
names and addresses and other information that will allow it to identify each
Loan Party in accordance with the Patriot Act.

Steel Dynamics – Credit Agreement

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

Back to Contents

78

SECTION 8.15. Waiver of Jury Trial. Each of the Borrower, the Agents and the
Lender Parties irrevocably waives all right to trial by jury in any action,
proceeding or counterclaim (whether based on contract, tort or otherwise)
arising out of or relating to any of the Loan Documents, the Advances, the
Letters of Credit or the actions of any Agent or any Lender Party in the
negotiation, administration, performance or enforcement thereof.

Steel Dynamics – Credit Agreement

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

Back to Contents

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective officers thereunto duly authorized, as of the date first
above written.

  STEEL DYNAMICS, INC.           By  /s/ Gary Heasley     

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

      Name:         Title:                           NATIONAL CITY BANK        
   

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

,   as Administrative Agent             By  /s/ Mark A. Minnick     

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

      Name:         Title:                           NATIONAL CITY BANK        
   

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

,   as Collateral Agent             By  /s/ Mark A. Minnick       

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

      Name:       Title:                         MORGAN STANLEY SENIOR FUNDING,
INC.,   as a Lead Arranger             By  /s/ Todd Vannucci       

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

      Name:         Title:                           BANC OF AMERICA SECURITIES
LLC,   as a Lead Arranger             By  /s/ Mark Halmrest       

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

      Name:         Title:    

Steel Dynamics – Credit Agreement

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

Back to Contents

Initial Issuing Bank

  HARRIS N.A.             By  /s/ Thad Rasche       

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

      Title:    

Steel Dynamics – Credit Agreement

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

Back to Contents

Initial Lender

  General Electric Capital Corporation             By  /s/ Matthew N. McAlpine  
   

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

        Morgan Stanley Senior Funding, Inc.             By  /s/ Todd Vannucci  
   

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

        Bank of America N.A.             By  /s/ David McCauley      

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

        Harris N.A.             By  /s/ Thad Rasche      

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

        National City Bank             By  /s/ M. J. Eikenbury      

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

        Fifth Third Bank (Central Indiana)             By  /s/ David O'Neal    
 

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

        Wells Fargo Bank, N.A.             By  /s/ Paul A. O'Mara      

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

        PNC Bank, National Association             By  /s/ Holly Kay      

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

    The Northern Trust Company             By  /s/ Rebecca H. Pasquesi      

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

        JPMorgan Chase Bank, N.A.             By  /s/ Peter S. Predun      

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

        Goldman Sachs Credit Partners L.P.             By  /s/ William Archer  
   

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

        UBS Loan Finance LLC             By  /s/ Wilfred V. Saint      

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

              By  /s/ Richard L. Tavrow      

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

 

Steel Dynamics – Credit Agreement

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

Back to Contents

SCHEDULE I

COMMITMENTS AND APPLICABLE LENDING OFFICES

    Revolving             Name of Initial   Credit   Letter of Credit   Domestic
  Eurodollar Lender   Commitment   Commitment   Lending Office   Lending Office

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

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

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

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

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

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

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

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

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

General Electric Capital Corporation   $60,000,000       On file with the
Administrative Agent   On file with the Administrative Agent

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

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

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

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

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

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

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

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

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

Morgan Stanley Senior Funding, Inc.   $45,000,000       On file with the
Administrative Agent   On file with the Administrative Agent

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

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

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

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

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

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

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

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

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

Bank of America, N.A.   $45,000,000       On file with the Administrative Agent
  On file with the Administrative Agent

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

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

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

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

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

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

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

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

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

Harris N.A.   $40,000,000   $30,000,000   On file with the Administrative Agent
  On file with the Administrative Agent

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

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

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

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

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

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

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

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

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

National City Bank   $35,000,000       On file with the Administrative Agent  
On file with the Administrative Agent

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

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

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

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

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

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

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

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

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

Fifth Third Bank (Central Indiana)   $30,000,000       On file with the
Administrative Agent   On file with the Administrative Agent

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

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

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

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

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

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

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

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

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

Wells Fargo Bank, N.A.   $25,000,000       On file with the Administrative Agent
  On file with the Administrative Agent

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

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

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

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

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

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

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

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

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

PNC Bank, National Association   $25,000,000       On file with the
Administrative Agent   On file with the Administrative Agent

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

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

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

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

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

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

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

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

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

The Northern Trust Company   $15,000,000       On file with the Administrative
Agent   On file with the Administrative Agent

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

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

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

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

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

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

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

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

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

JPMorgan Chase Bank, N.A.   $10,000,000       On file with the Administrative
Agent   On file with the Administrative Agent

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

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

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

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

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

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

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

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

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

Goldman Sachs Credit Partners L.P.   $10,000,000            

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

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

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

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

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

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

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

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

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

UBS Loan Finance LLC   $10,000,000            

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

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

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

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

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

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

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

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

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

Total   $350,000,000   $30,000,000        

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

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

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

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

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

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

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

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

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

Steel Dynamics – Credit Agreement

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

Back to Contents

EXHIBIT A

FORM OF
REVOLVING CREDIT NOTE

$ _______________ Dated: _________ __, ____

FOR VALUE RECEIVED, the undersigned, STEEL DYNAMICS, INC., an Indiana
corporation (the “Borrower”), HEREBY UNCONDITIONALLY PROMISES TO PAY to
_________________________ or its registered assigns (the “Lender”) for the
account of its Applicable Lending Office (as defined in the Credit Agreement
referred to below) the aggregate principal amount of the Revolving Credit
Advances, the Letter of Credit Advances and the Swing Line Advances (each as
defined below) owing to the Lender by the Borrower pursuant to the Credit
Agreement dated as of September 7, 2005 (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”;
terms defined therein, unless otherwise defined herein, being used herein as
therein defined) among the Borrower, the Lender and certain other lender parties
party thereto, National City Bank, as Collateral Agent, National City Bank, as
Administrative Agent for the Lender and such other lender parties, Morgan
Stanley Senior Funding, Inc. (“Morgan Stanley”), as Syndication Agent and Morgan
Stanley and Banc of America Securities LLC, as Lead Arrangers on the Termination
Date.

The Borrower promises to pay to ________or its registered assigns interest on
the unpaid principal amount of each Revolving Credit Advance, Letter of Credit
Advance and Swing Line Advance from the date of such Revolving Credit Advance,
Letter of Credit Advance or Swing Line Advance, as the case may be, until such
principal amount is paid in full (as well after as before judgment), at such
interest rates, and payable at such times, as are specified in the Credit
Agreement.

Both principal and interest are payable in lawful money of the United States of
America to National City Bank, as Administrative Agent, at _______________,
_____________ in same day funds without set-off or counterclaim. The Lender is
hereby authorized to record each Revolving Credit Advance, Letter of Credit
Advance and Swing Line Advance owing to the Lender by the Borrower and the
maturity thereof, and all payments made on account of principal thereof, on the
grid attached hereto, which is part of this Promissory Note; provided, however,
that the failure of the Lender to make any such recordation or endorsement shall
not affect the Obligations of the Borrower under this Promissory Note.

This Promissory Note is one of the Notes referred to in, and is entitled to the
benefits of, the Credit Agreement. The Credit Agreement, among other things, (i)
provides for the making of advances (variously, the “Revolving Credit Advances”,
the “Letter of Credit Advances” or the “Swing Line Advances”) by the Lender to
or for the benefit of the Borrower from time to time in an aggregate amount not
to exceed at any time outstanding the U.S. dollar amount first above mentioned,
the indebtedness of the Borrower resulting from each such Revolving Credit
Advance, Letter of Credit Advance and Swing Line Advance being evidenced by this
Promissory Note, and (ii) contains provisions for acceleration of the maturity
hereof upon the happening of certain stated events and also for prepayments on
account of principal hereof prior to the maturity hereof upon the terms and
conditions therein specified. The obligations of the Borrower under this
Promissory Note and the other Loan Documents, and the obligations of the other
Loan Parties under the Loan Documents, are secured by the Collateral and
guaranteed by the Guaranties as provided in the Loan Documents.

This Promissory Note shall be governed by, and construed in accordance with, the
laws of the State of New York.

Steel Dynamics – Credit Agreement

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

2

  STEEL DYNAMICS, INC.           By        

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

    Name:       Title:          

Steel Dynamics – Credit Agreement

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

Back to Contents

ADVANCES AND PAYMENTS OF PRINCIPAL

Date Amount of Advance Interest Period
(If Applicable) Amount of Principal
Paid
or Prepaid Unpaid Principal
Balance Notation
Made By                                                                        
                                               

Steel Dynamics – Credit Agreement

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

Back to Contents

EXHIBIT B

FORM OF
NOTICE OF BORROWING

[b408718ex-bx1.jpg]

Daily Activity Notice

Date:

August 29, 2005    

To:

Agent Services Candace Marsky 216-222-2888 phone  
Candace.Marsky@nationalcity.com 216-222-0012 fax  
Sonya.Townsell@nationalcity.com     Sheri.Hoff@nationalcity.com  

From:

Steel Dynamics, Inc. Contact phone   email fax      

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

  Please check appropriate box: [emptybox.gif] REVOLVER BASE RATE     Notice
Deadline: 12:00 Noon (Same Day)             Beginning Balance:     $ -         

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

              ADVANCE     $ -     Credit DDA #    

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

              PAYDOWN     $ -     Debit DDA #    

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

              Ending Balance:     $ -         

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

            [emptybox.gif] REVOLVER LIBOR RATE     Notice Deadline: 12:00 Noon
(3 Days Prior)             Effective Date:           

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

              New Funds Borrowing:     $ -     Credit DDA #    

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

              Convert From Prime:     $ -         

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

              Duration of Contract:     [emptybox.gif] 1
Month   [emptybox.gif] 2 Months   [emptybox.gif] 3 Months   [emptybox.gif] 6
Months      Confirmation of Rate Setting wil be faxed           [emptybox.gif]
SWING LINE MONEY MARKET RATE     Notice Deadline: 2:00 PM (Same Day)            
Beginning Balance:     $ -         

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

              ADVANCE     $ -     Credit DDA #    

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

              PAYDOWN     $ -     Debit DDA #    

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

              Ending Balance:     $ -         

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

         

Steel Dynamics – Credit Agreement

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

Back to Contents

EXHIBIT C

FORM OF
ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (the “Assignment and Assumption”) is dated as of
the Effective Date set forth below and is entered into by and between [Insert
name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the
“Assignee”). Capitalized terms used but not defined herein shall have the
meanings given to them in the Credit Agreement identified below (as amended, the
“Credit Agreement”), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto
are hereby agreed to and incorporated herein by reference and made a part of
this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns
to the Assignee, and the Assignee hereby irrevocably purchases and assumes from
the Assignor, subject to and in accordance with the Standard Terms and
Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of the Assignor’s rights and
obligations in its capacity as a Lender under the Credit Agreement and any other
documents or instruments delivered pursuant thereto to the extent related to the
amount and percentage interest identified below of all of such outstanding
rights and obligations of the Assignor under the respective facilities
identified below (including without limitation any letters of credit,
guarantees, and swingline loans included in such facilities) and (ii) to the
extent permitted to be assigned under applicable law, all claims, suits, causes
of action and any other right of the Assignor (in its capacity as a Lender)
against any Person, whether known or unknown, arising under or in connection
with the Credit Agreement, any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or
related to any of the foregoing, including, but not limited to, contract claims,
tort claims, malpractice claims, statutory claims and all other claims at law or
in equity related to the rights and obligations sold and assigned pursuant to
clause (i) above (the rights and obligations sold and assigned pursuant to
clauses (i) and (ii) above being referred to herein collectively as, the
“Assigned Interest”). Such sale and assignment is without recourse to the
Assignor and, except as expressly provided in this Assignment and Assumption,
without representation or warranty by the Assignor.

1. Assignor:      

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

      2. Assignee:      

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

    [and is an Affiliate/Approved Fund of [identify Lender]1]       3.
Borrower(s):      

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

      4. Administrative Agent: _________________________, as the administrative
agent under the Credit                        Agreement       5. Credit
Agreement: [The [amount] Credit Agreement dated as of _______ among [name of
Borrower(s)], the Lenders parties thereto, [name of Administrative Agent], as
Administrative Agent, and the other agents parties thereto]                    
               

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

1 Select as applicable.

Steel Dynamics – Credit Agreement

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

Back to Contents

2

6.  Assigned Interest:

Facility Assigned2   Aggregate Amount of
Commitment/Loans for all
Lenders* Amount of Commitment/Loans
Assigned*  Percentage Assigned of
Commitment/Loans3       $    $ %                $    $ %                $    $
%          

      [7. Trade Date: ______________ ]4 

Effective Date: _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT
AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

  ASSIGNOR   [NAME OF ASSIGNOR]         By:      

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

    Title:         ASSIGNEE   [NAME OF ASSIGNEE]         By:      

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

    Title:

Consented to and]5 Accepted:

NAME OF ADMINISTRATIVE AGENT], as
  Administrative Agent

By    

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

  Title:

 Consented to:]6

NAME OF RELEVANT PARTY]

By    

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

  Title:    

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

2 Fill in the appropriate terminology for the types of facilities under the
Credit Agreement that are being assigned under this Assignment (e.g. “Revolving
Credit Commitment,” “Term Loan Commitment,” etc.)     * Amount to be adjusted by
the counterparties to take into account any payments or prepayments made between
the Trade Date and the Effective Date.     3 Set forth, to at least 10 decimals,
as a percentage of the Commitment/Loans of all Lenders thereunder.      4 To be
completed if the Assignor and the Assignee intend that the minimum assignment
amount is to be determined as of the Trade Date.      5 To be added only if the
consent of the Administrative Agent is required by the terms of the Credit
Agreement.     6 To be added only if the consent of the Borrower and/or other
parties (e.g. Swingline Lender, L/C Issuer) is required by the terms of the
Credit Agreement. 

Steel Dynamics – Credit Agreement

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

Back to Contents

3

Effective Date (if other than date of acceptance by Administrative Agent):

7_________ __, ____

  Assignors         ___________________________, as Assignor   [Type or print
legal name of Assignor]         By      

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

    Name     Title:         Dated: _________ __, ____        
___________________________, as Assignor   [Type or print legal name of
Assignor]         By      

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

    Name     Title:         Dated: _________ __, ____        
___________________________, as Assignor   [Type or print legal name of
Assignor]         By      

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

    Name     Title:         Dated: _________ __, ____        
___________________________, as Assignor   [Type or print legal name of
Assignor]         By      

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

    Name     Title:         Dated: _________ __, ____    

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

7  This date should be no earlier than five Business Days after the delivery of
this Assignment and Assumption to the Administrative Agent.

Steel Dynamics – Credit Agreement

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

Back to Contents

4

              ___________________________, as Assignor   [Type or print legal
name of Assignor]         By      

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

    Name     Title:         Dated: _________ __, ____               Assignees  
      ___________________________, as Assignee   [Type or print legal name of
Assignee]               By      

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

    Name     Title:         Dated: _________ __, ____         Domestic Lending
Office:         Eurodollar Lending Office:              
___________________________, as Assignee   [Type or print legal name of
Assignee]         By      

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

    Name     Title:         Dated: _________ __, ____         Domestic Lending
Office:             Eurodollar Lending Office:

Steel Dynamics – Credit Agreement

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

Back to Contents

5

        ___________________________ , as Assignee   [Type or print legal name of
Assignee]         By      

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

    Name     Title:         Dated: _________ __, ____         Domestic Lending
Office:             Eurodollar Lending Office:              
___________________________ , as Assignee   [Type or print legal name of
Assignee]         By      

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

    Name     Title:         Dated: _________ __, ____         Domestic Lending
Office:               Eurodollar Lending Office:              
___________________________ , as Assignee   [Type or print legal name of
Assignee]   By      

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

    Name     Title:         Dated: _________ __, ____         Domestic Lending
Office:               Eurodollar Lending Office:

Steel Dynamics – Credit Agreement

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

Back to Contents

6

Accepted 8[and Approved] this ____
day of ___________ , ____     [______________________________ ],
as Administrative Agent     By    

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

  Name   Title:    

9 [Approved this ____ day
of _____________ , ____

    STEEL DYNAMICS, INC.     By    

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

  Name   Title:                        

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

8 Required if the Assignee is an Eligible Assignee except by reason of clause
(b) of the definition of “Eligible Assignee”.     9 See footnote 2 and also only
required so long as no Default or Event of Default has occurred and is
continuing.

Steel Dynamics – Credit Agreement

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