OMNIBUS AMENDMENT NO. 1
- - -
Amendment No. 2 to Receivables Sale Agreement,
Amendment No. 2 to Receivables Purchase Agreement,
and
Amendment No. 2 to Performance Undertaking
THIS OMNIBUS AMENDMENT NO. 1 (this “Amendment”) is entered into as of May 3,
2013 (the “Effective Date”), by and among Commercial Metals Company, a Delaware
corporation, individually (“CMC”) and as provider of the Performance Undertaking
(the “Performance Guarantor”), CMC Cometals Processing, Inc., a Texas
corporation (“Cometals”), Howell Metal Company, a Virginia corporation
(“Howell”), Structural Metals, Inc., a Texas corporation (“SMI”), CMC Steel
Fabricators, Inc., a Texas corporation (“CMC Steel”), SMI Steel LLC, an Alabama
limited liability company (previously known as SMI Steel Inc., an Alabama
corporation) (“SMI Steel”), SMI-Owen Steel Company, Inc., a South Carolina
corporation (“SMI Owen”), Owen Electric Steel Company of South Carolina, a South
Carolina corporation (“Owen Electric”), AHT, Inc., a Pennsylvania corporation
(“AHT”, together with CMC, Cometals, Howell, SMI, CMC Steel, SMI Steel, SMI Owen
and Owen Electric, the “Originators”), CMC Receivables, Inc., a Delaware
corporation (the “SPE”), Liberty Street Funding LLC, a Delaware limited
liability company (a “Purchaser”), The Bank of Nova Scotia, individually (a
“Purchaser”) and in its capacity as administrator of the Liberty Street Funding
Group (in such capacity, together with its successors and assigns in such
capacity, the “Liberty Street Administrator”), and Wells Fargo Bank, N.A.,
individually (a “Purchaser”), and as administrative agent for the Purchasers (in
such capacity, together with its successors and assigns in such capacity, the
“Administrative Agent”).
Preliminary Statements
A.    The Originators and the SPE are parties to that certain Receivables Sale
Agreement dated as of April 5, 2011 (as amended, restated, or modified from time
to time, the “Sale Agreement”).

B.    The SPE, CMC, Liberty Street, the Liberty Street Administrator, and WFB
are parties to that certain Receivables Purchase Agreement dated as of April 5,
2011 (as amended, restated, or modified from time to time, the “Purchase
Agreement”).

C.    The Performance Guarantor and the SPE are parties to that certain
Performance Undertaking dated as of April 5, 2011 (as amended, restated, or
modified from time to time, the “Performance Undertaking,” and together with the
Sale Agreement and the Purchase Agreement, the “Agreements” ).

D.    SMI Owen desires to withdraw from the Sale Agreement as an Originator, and
the parties hereto desire to amend the Agreements on the terms and subject to
the conditions hereinafter set forth.

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

1.Definitions. Capitalized terms used and not otherwise defined herein are used
with the meanings attributed thereto in the Agreements.
2.    Amendments. As of the Effective Date:
2.1.    Amendment to Sale Agreement. The Sale Agreement is hereby amended to
delete SMI Owen as an Originator, and the Subordinated Note issued by the SPE in
favor of SMI Owen is hereby cancelled.
2.2.    Amendments to Purchase Agreement.
a.    The definition of each of the following defined terms in Exhibit I to the
Purchase Agreement is hereby amended and restated in its entirety to read,
respectively, as follows:
“Lock-Box Agreement” means, in respect of any Lock-Box Account(s), an agreement
among the Originator that is the owner of such Lock-Box Account(s), the
Administrative Agent, as assignee of the Seller’s security interest therein, and
the applicable Lock-Box Bank, perfecting the Administrative Agent’s security
interest in such Lock-Box Account(s).

“Required Purchasers” means (a) at any time there is only one Purchaser, such
Purchaser, (b) at any time there are only two Purchasers, (i) solely for
purposes of Section 7.2 of this Agreement, either Purchaser, and (ii) for all
other purposes, both Originators, and (c) at all other times, Purchasers with
Commitments in excess of 66-2/3% of the aggregate Commitment (or, if no
Commitments are outstanding, Purchasers with outstanding Capital in excess of
66-2/3% of the outstanding Aggregate Capital).

b.    Section 6.3 of the Purchase Agreement is hereby amended and restated in
its entirety to read as follows:
Section 6.3. Lock-Box Accounts. Pursuant to the Sale Agreement, the applicable
Originator has granted to Seller a security interest in, among other things,
each Lock-Box Account. Seller hereby assigns its security interest in each
Lock-Box Account to the Administrative Agent, for the benefit of the Purchasers.
Subject to the terms of the applicable Lock-Box Agreement, the Administrative
Agent has been given “control” (within the meaning of the UCC) over each
Lock-Box Account. Seller hereby authorizes the Administrative Agent, and agrees
that the Administrative Agent shall be entitled after the occurrence of an
Amortization Event to (a) endorse Seller’s

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name on checks and other instruments representing Collections, (b) enforce the
Receivables, the related Contracts and the Related Security and (c) take such
action as shall be necessary or desirable to cause all cash, checks and other
instruments constituting Collections of Receivables to come into the possession
of the Administrative Agent rather than Seller.

c.    Exhibit IV to the Purchase Agreement is hereby amended and restated in its
entirety to read as set forth on Annex I hereto.
d.    Schedule C to the Purchase Agreement is hereby amended and restated in its
entirety to read as set forth on Annex II hereto.
2.3.    Amendment to Performance Undertaking. All references in the Performance
Undertaking to “SMI - Owen Steel Co. Inc., a South Carolina corporation” or to
“SMI Owen” are hereby deleted.
3.    Effect of Amendments; Waiver.
3.1.    Except as specifically amended hereby, the Agreements shall remain
unaltered and in full force and effect. This Amendment shall not constitute a
novation of the Agreements, but shall constitute an amendment to the Agreements
and the exhibits and schedules thereto as noted above. The parties hereto agree
to be bound by the terms and conditions of the Agreements, as amended hereby, as
though such terms and conditions were set forth in full herein.
3.2.    The Administrative Agent, the Liberty Street Administrator and the
Purchasers hereby waive any Amortization Event or Potential Amortization Event
that may exist by virtue of (a) any misrepresentation by the Originators under
the Sale Agreement or by the SPE under the Purchase Agreement as to title to the
Receivables originated by Owen Electric or perfection of the SPE’s ownership
interest or the Administrative Agent’s security interest therein prior to Owen
Electric’s joinder to the Sale Agreement, and (b) any resulting cross-default
under the Purchase Agreement.
3.3.    The Administrative Agent or its counsel is hereby authorized and
directed to terminate financing statement no. 110407-1330367 filed 4/7/11 in the
office of the Secretary of State of the State of South Carolina naming SMI-Owen
as debtor/seller, and the security interests of the SPE and the Administrative
Agent in the assets covered thereby are hereby released and terminated.
4.    Representations and Warranties. In order to induce the Administrative
Agent, the Liberty Street Administrator and the Purchasers to enter into this
Amendment:
4.1.    Each of the Originators hereby represents and warrants that (i) its
execution and delivery of this Amendment is within its corporate or limited
liability company powers and authority and has been duly authorized by all
necessary corporate or limited liability company action on its part, (ii) this
Amendment has been duly executed and delivered by

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it, (iii) each of its representations and warranties set forth in Article II of
the Sale Agreement is true and correct on and as of the Effective Date as though
made on and as of each such date, except to the extent such representations and
warranties expressly relate to an earlier date, in which case each of such
representations and warranties remains true and correct in all material respects
as of such earlier date, and (iv) no event has occurred and is continuing that
will constitute a Termination Event or an Unmatured Termination Event on and as
of the Effective Date.
4.2.    Each of the SPE and CMC, hereby represents and warrants that (i) its
execution and delivery of this Amendment is within its corporate powers and
authority and has been duly authorized by all necessary corporate action on its
part, (ii) this Amendment has been duly executed and delivered by it, (iii) each
of its representations and warranties set forth in Article III of the Purchase
Agreement is true and correct on and as of the Effective Date as though made on
and as of each such date, except to the extent such representations and
warranties expressly relate to an earlier date, in which case each of such
representations and warranties remains true and correct in all material respects
as of such earlier date, (iv) in the case of CMC, each of its representations
and warranties set forth in Section 6 of the Performance Undertaking is true and
correct on and as of the Effective Date as though made on and as of each such
date, except to the extent such representations and warranties expressly relate
to an earlier date, in which case each of such representations and warranties
remains true and correct in all material respects as of such earlier date (v) no
event has occurred and is continuing that will constitute a Termination Event or
an Unmatured Termination Event on and as of the Effective Date, and (vi) no
Investment Excess exists on and as of the Effective Date.
5.    Conditions Precedent. Effectiveness of this Amendment is subject to the
satisfaction of each of the following conditions precedent on or prior to the
Effective Date:
5.1.
The Administrative Agent shall have received:

a.    counterparts hereof, duly executed by each of the parties hereto,
b.    counterparts of Amendment No. 1 to Deposit Account Control Agreement dated
as of May 3, 2013, duly executed by each of CMC, the Administrative Agent and
Bank of America, N.A.,
c.    counterparts of Joinder and Amendment No. 1 to Receivables Sale Agreement,
duly executed by each of the parties thereto and consented to by the Liberty
Street Administrator and the Administrative Agent, together with each of the
closing documents required thereunder; and
d.    payment of WFB’s legal fees in connection with the preparation and closing
of this Amendment; and
5.2.    Each of the representations and warranties contained in Section 4 of
this Amendment shall be true and correct as of the Effective Date.

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6.    Miscellaneous.
6.1.    GOVERNING LAW. AS TO ITS IMPACT ON EACH OF THE AGREEMENTS AMENDED
HEREBY, THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
SAME LAWS THAT GOVERN SUCH AGREEMENT.
6.2.    CONSENT TO JURISDICTION. EACH SELLER PARTY AND EACH ORIGINATOR HEREBY
IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES
FEDERAL OR STATE COURT SITTING IN THE BOROUGH OF MANHATTAN, NEW YORK, IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT, THE
AGREEMENTS AS AMENDED HEREBY, OR ANY DOCUMENT EXECUTED BY SUCH PERSON PURSUANT
TO THIS AMENDMENT, AND EACH SELLER PARTY AND EACH ORIGINATOR HEREBY IRREVOCABLY
AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR
HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN
SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL
LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT, THE LIBERTY STREET ADMINISTRATOR OR
ANY PURCHASER TO BRING PROCEEDINGS AGAINST ANY SELLER PARTY OR ANY ORIGINATOR IN
THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY SELLER
PARTY OR ANY ORIGINATOR AGAINST THE ADMINISTRATIVE AGENT, THE LIBERTY STREET
ADMINISTRATOR OR ANY PURCHASER OR ANY AFFILIATE OF THE ADMINISTRATIVE AGENT, THE
LIBERTY STREET ADMINISTRATOR OR ANY PURCHASER INVOLVING, DIRECTLY OR INDIRECTLY,
ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS
AMENDMENT OR ANY DOCUMENT EXECUTED BY SUCH SELLER PARTY OR ORIGINATOR PURSUANT
TO THIS AMENDMENT SHALL BE BROUGHT ONLY IN A COURT IN THE BOROUGH OF MANHATTAN,
NEW YORK.
6.3.    WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN
ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER
SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO,
OR CONNECTED WITH THIS AMENDMENT, THE AGREEMENTS AS AMENDED BY THIS AMENDMENT,
ANY DOCUMENT EXECUTED BY ANY SELLER PARTY OR ANY ORIGINATOR PURSUANT TO THE
AGREEMENTS OR THIS AMENDMENT OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR
THEREUNDER.
6.4.    Integration; Binding Effect. This Amendment and each other Transaction
Document contain the final and complete integration of all prior expressions by
the parties hereto with respect to the subject matter hereof and shall
constitute the entire agreement

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among the parties hereto with respect to the subject matter hereof superseding
all prior oral or written understandings. This Amendment shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and permitted assigns (including any trustee in bankruptcy).
6.5.    Counterparts; Severability. This Amendment 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
when taken together shall constitute one and the same Amendment. To the fullest
extent permitted by applicable law, delivery of an executed counterpart of a
signature page of this Amendment by telefacsimile or electronic image scan
transmission (such as a “pdf” file) will be effective to the same extent as
delivery of a manually executed original counterpart of this Amendment. Any
provisions of this Amendment which are prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.
6.6.    Reaffirmation. Except as expressly modified herby, each of the Sale
Agreement, the Purchase Agreement and the Performance Undertaking is hereby
ratified and remains unaltered and in full force and effect.

[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
and delivered by their duly authorized officers as of the date hereof.
CMC RECEIVABLES, INC.

By:    /s/ Carey J. Dubois                    
Name: Carey J. Dubois
Title: Treasurer

Signature Page 1

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COMMERCIAL METALS COMPANY, individually and as Performance Guarantor

By:    /s/ Carey J. Dubois            
Name: Carey J. Dubois
Title: V.P. and Treasurer

Signature Page 2

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CMC COMETALS PROCESSING, INC.

By:    /s/ Paul K. Kirkpatrick            
Name: Paul K. Kirkpatrick
Title: Secretary

                        

Signature Page 3

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HOWELL METAL COMPANY

By:    /s/ Carey J. Dubois            
Name: Carey J. Dubois
Title: Treasurer

                        

Signature Page 4

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STRUCTURAL METALS, INC.

By:    /s/ Carey J. Dubois            
Name: Carey J. Dubois
Title: Treasurer

                        

Signature Page 5

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CMC STEEL FABRICATORS, INC.

By:    /s/ Carey J. Dubois            
Name: Carey J. Dubois
Title: Treasurer

                        

Signature Page 6

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SMI STEEL LLC
                        

By:    /s/ Carey J. Dubois            
Name: Carey J. Dubois
Title: Treasurer

Signature Page 7

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OWEN ELECTRIC STEEL COMPANY OF SOUTH CAROLINA

                        

By:    /s/ Carey J. Dubois            
Name: Carey J. Dubois
Title: Treasurer
                        

Signature Page 7

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SMI - OWEN STEEL COMPANY, INC.

By:    /s/ Carey J. Dubois            
Name: Carey J. Dubois
Title: Treasurer

                        

Signature Page 8

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AHT, INC.

By:    /s/ Carey J. Dubois            
Name: Carey J. Dubois
Title: Treasurer

                        

Signature Page 9

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WELLS FARGO BANK, N.A., INDIVIDUALLY AND AS ADMINISTRATIVE AGENT

By:    /s/ William P. Rutkowski            
Name: William P. Rutkowski        
Title: Vice President        

Signature Page 10

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THE BANK OF NOVA SCOTIA, INDIVIDUALLY AND AS LIBERTY STREET AGENT

By:    /s/ John Krazell                
Name:    John Krazell    
Title: Director        

18Signature Page 11

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LIBERTY STREET FUNDING LLC

By:    /s/ Jill A. Russo                
Name:    Jill A. Russo
Title: Vice President

19Signature Page 12

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Annex I

EXHIBIT IV
LOCK-BOXES AND LOCK-BOX ACCOUNTS

[INTENTIONALLY OMITTED]

Annex I – Exhibit IV20

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Annex II

SCHEDULE C
DIVISIONS

Originator
Participating Division
 
 
Commercial Metals Company
ALL DIVISIONS
 
 
CMC Cometals Processing, Inc.
ALL DIVISIONS
 
 
Howell Metal Company
ALL DIVISIONS
 
 
AHT, Inc.
ALL DIVISIONS
 
 
Structural Metals, Inc.
CMC Steel Texas
 
CMC Logistics
 
CMC Distribution
 
 
CMC Steel Fabricators, Inc.
CMC Steel Arizona
 
CMC Southern Post
 
CMC Steel Arkansas
 
 
SMI Steel LLC
CMC Steel Alabama
 
 
Owen Electric Steel Company of South Carolina
CMC Steel South Carolina

Annex II – Schedule C