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                                                                   EXHIBIT 10.3

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                          RELIANCE STEEL & ALUMINUM CO.

                   AMENDMENT NO. 1 TO NOTE PURCHASE AGREEMENTS

                            Dated as of July 1, 2003

                                       Re:
                Note Purchase Agreements dated September 15, 1997
                                       and
          $25,000,000 7.04% Senior Notes, Series F, due January 2, 2006
                                       and
          $30,000,000 7.08% Senior Notes, Series G, due January 2, 2008

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

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                   AMENDMENT NO. 1 TO NOTE PURCHASE AGREEMENTS

         Amendment No. 1 to Note Purchase Agreements dated as of July 1, 2003,
between RELIANCE STEEL & ALUMINUM CO., a California corporation (the "Company"),
and GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY, TRANSAMERICA OCCIDENTAL LIFE
INSURANCE COMPANY, ALLSTATE LIFE INSURANCE COMPANY, MASSACHUSETTS MUTUAL LIFE
INSURANCE COMPANY, UNITED OF OMAHA LIFE INSURANCE COMPANY, CUNA MUTUAL INSURANCE
SOCIETY and CUNA MUTUAL LIFE INSURANCE COMPANY (each a "Purchaser" and,
collectively, the "Purchasers").

                                    RECITALS

         A.       Under and pursuant to the separate and several Note Purchase
Agreements dated September 15, 1997 (the "Note Purchase Agreements"), between
the Company and each of the Purchasers, the Company has issued and sold to the
Purchasers (i) $25,000,000 aggregate principal amount of its 7.04% Senior Notes,
Series F, due January 2, 2006 (the "Series F Notes") and (ii) $30,000,000
aggregate principal amount of its 7.08% Senior Notes, Series G, due January 2,
2008 (the "Series G Notes"). The Series F Notes and the Series G Notes are
herein collectively referred to as the "Notes."

         B.       Under and pursuant to that certain Credit Agreement by and
among the Company and Bank of America, N.A., a national banking association (the
"Bank"), dated as of October 24, 2001 (as amended, the "Credit Agreement"), the
Bank has extended to the Company a revolving line of credit on the terms and
conditions provided therein. Under the terms of the Third Amendment to Credit
Agreement dated as of July __, 2003, the Bank has required the Company and the
Subsidiary Guarantors to grant the Collateral Agent (as defined in the
Intercreditor Agreement described in Section 1.1 below) a first priority lien in
all right, title and interest of the Company and the Subsidiary Guarantors in
the Collateral (as defined in the Intercreditor Agreement described in Section
1.1 below), whether now owned or hereafter acquired.

         C.       Under and pursuant to Sections 10.5 and 11 of the Note
Purchase Agreements, the grant of a lien by the Company or the Subsidiary
Guarantors on any of their assets or property in favor of the Bank or any other
creditor would be prohibited and would constitute an Event of Default. In
consideration for the Purchasers' consent to the granting of a lien with respect
to the Collateral and the other amendments provided herein, the Company and the
Subsidiary Guarantors have agreed to grant a first priority lien in the
Collateral in favor of the Collateral Agent for the ratable benefit of the Bank
and the other lenders under the Credit Agreement, the holders of certain other
senior notes of the Company and each of the Purchasers (the "Pari Passu Lien").

         D.       Under and pursuant to the Subsidiary Guaranty, the Subsidiary
Guarantors have unconditionally guaranteed the obligations of the Company in
connection with the issuance of the Notes. As a condition precedent to amending
the Note Purchase Agreements, the Purchasers have required the Subsidiary
Guarantors to acknowledge and consent to this Amendment No. 1 to the Note
Purchase Agreements and to pledge certain of their assets to the Collateral
Agent to

<PAGE>

secure the payment of the Notes and the performance by each of the
Subsidiary Guarantors of their obligations under the Subsidiary Guaranty and,
desiring to help secure financing for the Company which will result in direct or
indirect benefits to each of the Subsidiary Guarantors, the Subsidiary
Guarantors have agreed to acknowledge and consent to this Amendment No. 1 to
Note Purchase Agreements and to pledge certain of their assets pursuant to the
Security Agreement (as defined in Section 1.1 hereof).

         E.       The Pari Passu Lien shall be granted pursuant to the Security
Agreement, which is substantially in the form attached hereto as Exhibit A.

         F.       The terms pursuant to which the Purchasers, the Bank and
certain other senior creditors of the Company will share such Pari Passu Lien
shall be set forth in an Intercreditor Agreement substantially in the form
attached hereto as Exhibit B.

         NOW, THEREFORE, in consideration of the mutual agreements herein
contained and other good and valuable consideration, the receipt whereof is
hereby acknowledged, the Company and the Purchasers agree that the Note Purchase
Agreements are hereby amended in the following respects:

SECTION 1.          AMENDMENTS TO NOTE PURCHASE AGREEMENTS.

         Section 1.1.      Section 1 of the Note Purchase Agreements is hereby
amended by adding two new paragraphs at the end thereof reading in their
entirety as set forth below:

                  As an inducement to you entering into Amendment No. 1 to Note
         Purchase Agreements, the Company has executed and delivered or will
         cause to be executed and delivered, or simultaneously with the
         execution and delivery of Amendment No. 1 to Note Purchase Agreements
         will execute and deliver, and the Notes, together with all other
         Obligations (as defined in the Intercreditor Agreement described
         below), will be secured by, the Security Agreement dated as of July 1,
         2003 (the "Security Agreement") from the Company and each Material
         Subsidiary to Bank of America, N.A., as Collateral Agent (the
         "Collateral Agent"), pursuant to which the Company and each Material
         Subsidiary shall grant a security interest (which shall be a pari
         passu, first priority, perfected security interest, subject to Liens
         permitted by Section 10.5) in the collateral defined therein to the
         Collateral Agent for the benefit of the holders of the Notes, certain
         other creditors of the Company and Bank of America, N.A. (the "Bank"),
         which Security Agreement will be substantially in the form attached to
         Amendment No. 1 to Note Purchase Agreements as Exhibit A.

                  In addition, pursuant to that certain Intercreditor Agreement
         dated as of July 1, 2003 (the "Intercreditor Agreement") among the
         Company, the Bank, individually and as Collateral Agent, certain other
         creditors of the Company and the holders of the Notes, which shall be
         substantially in the form attached to Amendment No. 1 to Note Purchase
         Agreements as Exhibit B, the Bank, such other creditors and the holders
         of the Notes

                                      -2-
<PAGE>

         have agreed, among other things, to share in the manner set forth
         therein the proceeds arising from the disposition of Collateral subject
         to the Security Agreement.

         Section 1.2.      A new sentence is hereby added to the end of Section
8.2 of the Note Purchase Agreements reading in its entirety as set forth below:

                  If amounts are to be applied to the principal of the Notes
         pursuant to the terms of the Intercreditor Agreement, such principal
         amount together with interest owing thereon to the prepayment date
         pursuant to the Intercreditor Agreement and the Make-Whole Amount, if
         any, with respect to such principal amount of each Note shall be due
         and payable on such date.

         Section 1.3.      The definition of "Reinvestment Yield" in Section 8.6
of the Note Purchase Agreements is hereby amended by replacing all references to
"USD" with "PX-1" and all references to "duration" with "maturity".

         Section 1.4.      Section 9.6 of the Note Purchase Agreements is hereby
amended and restated to read in its entirety as set forth below:

                  Section 9.6.      Security.

                  (a)      Security Agreement. The Company will execute and
         deliver to each holder of Notes, in connection with the closing of
         Amendment No. 1 to Note Purchase Agreements dated as of July 1, 2003,
         the Security Agreement. You hereby agree that the Security Agreement
         shall be released upon your receipt of written evidence, in the form
         attached hereto as Exhibit 9.6(a), that no other Debt of the Company
         that was secured by the Security Agreement is supported by any Lien or
         security agreement from the Company or any Material Subsidiary. In the
         event that the Security Agreement is so released and other Debt of the
         Company that was secured by the Security Agreement is thereafter
         supported by any Lien or security agreement from the Company or any
         Material Subsidiary, the Company (i) shall provide each holder of the
         Notes with at least 30 days' prior written notice thereof, which notice
         shall describe in reasonable detail such proposed other Lien or
         security agreement and (ii) concurrent with the effectiveness of such
         other Lien or security agreement, will execute and deliver to each
         holder of Notes, a new security agreement in the form of the Security
         Agreement granting a first priority pari passu Lien on the Collateral
         (as defined in the Security Agreement) to the Agent for the benefit of
         the holders of the Notes.

                  (b)      Subsidiary Guaranties and Collateral. The Company
         will cause each of its Material Subsidiaries existing as of the date of
         the Closing to execute and deliver to each holder of Notes, at the
         Closing (i) a subsidiary guaranty in the form attached hereto as
         Exhibit 9.6 (the "Subsidiary Guaranty") pursuant to which such Material
         Subsidiary will unconditionally guarantee all obligations of the
         Company under this Agreement, the Other Agreements, the Notes and the
         other Security Documents and (ii) the Security Agreement pursuant to
         which such Material Subsidiary will grant and maintain a first priority
         pari passu security interest (subject to Liens permitted by Section
         10.5) in the

                                      -3-
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         Collateral (as defined in the Security Agreement) to the Agent for the
         benefit of the holders of the Notes. The Company will cause (a) each of
         its Restricted Subsidiaries that becomes a Material Subsidiary at any
         time after the Closing and (b) each Material Subsidiary that is
         acquired at any time after the Closing to execute and deliver to each
         holder of Notes, within 10 Business Days after becoming a Material
         Subsidiary (i) a supplement to the Subsidiary Guaranty pursuant to
         which such Material Subsidiary will unconditionally guarantee all
         obligations of the Company under this Agreement, the Other Agreements,
         the Notes and the other Security Documents and (ii) a supplement to the
         Security Agreement pursuant to which such Material Subsidiary (y) will
         grant and maintain a first priority pari passu security interest
         (subject to Liens permitted by Section 10.5) in certain of its then
         owned or thereafter acquired personal property to the Agent for the
         benefit of the holders of the Notes and (z) will pledge its ownership
         of all of its shares of the capital stock of any Restricted Subsidiary
         to the Agent for the benefit of the holders of the Notes. The Company
         hereby agrees that, notwithstanding Section 10.11 hereof, at all times
         when the Subsidiary Guaranty or the Security Agreement is in effect (a)
         total net revenues of the Company and its Material Subsidiaries for the
         period of the immediately preceding four fiscal quarters shall be
         greater than or equal to 80% of the consolidated total net revenues of
         the Company and its Subsidiaries for such period and (b) total assets
         of the Company and its Material Subsidiaries, as of the last day of the
         immediately preceding fiscal quarter, shall be greater than or equal to
         80% of Consolidated Total Assets as of such date, in each case as
         reflected in the most recent annual or quarterly financial statements
         of the Company and its Subsidiaries.

                  Notwithstanding the foregoing, you hereby agree that the
         Security Agreement shall be released upon your receipt of written
         evidence, in the form attached hereto as Exhibit 9.6(a), that no other
         Debt of the Company that was secured by the Security Agreement is
         supported by any Lien or security agreement from the Company or any
         Material Subsidiary. In the event that the Security Agreement is so
         released and other Debt of the Company that was secured by the Security
         Agreement is thereafter supported by any Lien or security agreement
         from any Material Subsidiary, the Company (i) shall provide each holder
         of the Notes with at least 30 days' prior written notice thereof, which
         notice shall describe in reasonable detail such proposed other Lien or
         security agreement and (ii) concurrent with the effectiveness of such
         other Lien or security agreement, will cause each of its Material
         Subsidiaries that executed and delivered a security agreement
         supporting such other Debt to execute and deliver to each holder of
         Notes, a new security agreement in the form of the Security Agreement
         granting a first priority pari passu Lien on the Collateral (as defined
         in the Security Agreement) to the Agent for the benefit of the holders
         of the Notes.

                  Additionally, you hereby further agree that the Subsidiary
         Guaranty shall be released upon your receipt of written evidence, in
         the form attached hereto as Exhibit 9.6(a), that no other Debt of the
         Company is supported by any Guaranty from any Material Subsidiary. In
         the event that the Subsidiary Guaranty is so released and other Debt of
         the Company is thereafter supported by any Guaranty from any Material
         Subsidiary, the Company (i) shall provide each holder of the Notes with
         at least 30 days' prior written notice thereof, which notice shall
         describe in reasonable detail such

                                      -4-
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         proposed other Guaranty and (ii) concurrent with the effectiveness of
         such other Guaranty, will cause each of its Material Subsidiaries that
         executed and delivered a Guaranty supporting such other Debt to execute
         and deliver to each holder of Notes, a new Guaranty in the form of the
         Subsidiary Guaranty.

         Section 1.5.      A new Section 9.7 is hereby added to the Note
Purchase Agreements reading in its entirety as set forth below:

                  Section 9.7.      Further Assurances. At the written request
         of the Collateral Agent or any holder of Notes, the Company will, at no
         expense to the Collateral Agent or any holder of Notes, do, execute,
         acknowledge and deliver all and every further acts, deeds, conveyances,
         transfers and assurances reasonably necessary or proper for (i) the
         perfection and maintenance of the security interests and pledges being
         provided for pursuant to the Security Documents, (ii) carrying out the
         purposes of this Agreement, the Other Agreements, the Notes and each
         Security Document and (iii) better assuring the rights of the holders
         of the Notes under this Agreement, the Other Agreements, the Notes and
         each Security Document.

         Section 1.6.      Section 10.1 of the Note Purchase Agreements is
hereby amended and restated to read in its entirety as set forth below:

                  Section 10.1.     Consolidated Funded Debt. The Company will
         not at any time permit Consolidated Funded Debt to exceed 60% of Total
         Capitalization.

         Section 1.7.      Each reference in the Note Purchase Agreements to
"Section 10.1(c)" is hereby replaced with "Section 10.1".

         Section 1.8.      Section 10.4 of the Note Purchase Agreements is
hereby amended and restated to read in its entirety as set forth below:

                  Section 10.4.     Minimum Consolidated Net Worth. The Company
         will not, at any time, permit Consolidated Net Worth to be less than
         the sum of (a) $500,000,000, plus (b) an aggregate amount equal to 25%
         of its Consolidated Net Income (but, in each case, only if a positive
         number) for each completed fiscal year beginning with the fiscal year
         ended December 31, 2003.

         Section 1.9.      Subparagraph (g) of Section 10.5 of the Note Purchase
Agreements is hereby amended and restated to read in its entirety as set forth
below:

                  (g)      Liens existing on the date of this Agreement and
         securing the Debt of the Company and its Restricted Subsidiaries
         referred to in Schedule 5.15 and Liens granted pursuant to this
         Agreement, the Other Agreements, the Credit Agreement (so long as the
         Intercreditor Agreement shall remain in effect and each Lender under
         the Credit Agreement is a party to the Intercreditor Agreement) or the
         Security Documents;

                                      -5-
<PAGE>

         Section 1.10.     Subparagraph (b) of Section 10.8 of the Note Purchase
Agreements is hereby amended and restated to read in its entirety as set forth
below:

                  (b)      if the Company is not the Successor Corporation, such
         Successor Corporation shall have executed and delivered to each holder
         of Notes its assumption of the due and punctual performance and
         observance of each covenant and condition of this Agreement, the Other
         Agreements, the Security Documents and the Notes (pursuant to such
         agreements and instruments as shall be reasonably satisfactory to the
         Required Holders), and the Company shall have caused to be delivered to
         each holder of Notes an opinion of nationally recognized independent
         counsel, or other independent counsel reasonably satisfactory to the
         Required Holders, to the effect that all agreements or instruments
         effecting such assumption are enforceable in accordance with their
         terms and comply with the terms hereof; and

         Section 1.11.     The last sentence of Section 10.8 of the Note
Purchase Agreements is hereby amended and restated to read in its entirety as
set forth below:

            No such conveyance, transfer or lease of substantially all of the
            assets of the Company shall have the effect of releasing the Company
            or any Successor Corporation from its liability under this
            Agreement, the Other Agreements, the Security Documents or the
            Notes.

         Section 1.12.     Subparagraph (c) of Section 11 of the Note Purchase
Agreements is hereby amended and restated to read in its entirety as set forth
below:

                  (c)      the Company or any Subsidiary Guarantor defaults in
         the performance of or compliance with any term contained in any
         Security Agreement or the Company defaults in the performance of or
         compliance with any term contained in Sections 10.1 through 10.10,
         inclusive, hereof or any term contained in the Intercreditor Agreement;
         or

         Section 1.13.     Subparagraph (e) of Section 11 of the Note Purchase
Agreements is hereby amended and restated to read in its entirety as set forth
below:

                  (e)      any representation or warranty made in writing by or
         on behalf of the Company or any Restricted Subsidiary or by any officer
         of the Company or any Restricted Subsidiary in this Agreement, in any
         Security Document or in any writing furnished in connection with the
         transactions contemplated hereby proves to have been false or incorrect
         in any material respect on the date as of which made; or

         Section 1.14.     Section 16 of the Note Purchase Agreements is hereby
amended and restated to read in its entirety as set forth below:

         SECTION 16.       SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE
AGREEMENT.

                  All representations and warranties contained herein, in
         Amendment No. 1 to Note Purchase Agreements dated as of July 1, 2003 or
         in any Security Document shall survive

                                      -6-
<PAGE>

         the execution and delivery of this Agreement, the Notes and Amendment
         No. 1 to Note Purchase Agreements dated as of July 1, 2003, the
         purchase or transfer by you of any Note or portion thereof or interest
         therein and the payment of any Note, and may be relied upon by any
         subsequent holder of a Note, regardless of any investigation made at
         any time by or on behalf of you or any other holder of a Note. All
         statements contained in any certificate or other instrument delivered
         by or on behalf of the Company or any Subsidiary Guarantor pursuant to
         this Agreement, Amendment No. 1 to Note Purchase Agreements dated as of
         July 1, 2003 or any Security Document shall be deemed representations
         and warranties of the Company or such Subsidiary Guarantor under this
         Agreement. Subject to the preceding sentence, this Agreement (as
         amended by Amendment No. 1 to Note Purchase Agreements dated as of July
         1, 2003), the Security Documents and the Notes embody the entire
         agreement and understanding between you, the Company and the Subsidiary
         Guarantors supersede all prior agreements and understandings relating
         to the subject matter hereof.

         Section 1.15.     Subclause (iv) of clause (8) of the second sentence
of Section 20 of the Note Purchase Agreements is hereby amended and restated to
read in its entirety and a new third sentence is added to Section 20 as set
forth below:

                  (iv)     if an Event of Default has occurred and is
         continuing, to the extent you may reasonably determine such delivery
         and disclosure to be necessary or appropriate in the enforcement or for
         the protection of the rights and remedies under your Notes, this
         Agreement and the Security Documents. Any holder of a Note (and any
         employee, representative or other agent of such holder) may disclose to
         any and all Persons, without limitation of any kind, the tax treatment
         and tax structure of the transaction and all materials of any kind
         (including opinions or other tax analyses) that are provided to the
         taxpayer relating to such tax treatment and tax structure. The
         authorization in the immediately preceding sentence is not intended to
         permit, and does not permit, disclosure of any information not related
         to the tax treatment or tax structure of the transaction, including,
         for example, the identities of participants or potential participants
         and any Confidential Information regarding the operations or finances
         of the Company and its Subsidiaries.

         Section 1.16.     Schedule B to the Note Purchase Agreements is hereby
amended by adding thereto (in alphabetical order) a new definition of
"Consolidated Net Income" reading in its entirety as set forth below:

                  "Consolidated Net Income" means, with reference to any period,
         the net income (or loss) of the Company and its Restricted Subsidiaries
         for such period (taken as a cumulative whole), as determined in
         accordance with GAAP, after eliminating all offsetting debits and
         credits between the Company and its Restricted Subsidiaries and all
         other items required to be eliminated in the course of the preparation
         of consolidated financial statements of the Company and its Restricted
         Subsidiaries in accordance with GAAP.

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         Section 1.17.     Schedule B to the Note Purchase Agreements is hereby
amended by adding thereto (in alphabetical order) a new definition of
"Intercreditor Agreement" reading in its entirety as set forth below:

                  "Intercreditor Agreement" is defined in Section 1.

         Section 1.18.     The definition of "Material Adverse Effect" set forth
in Schedule B to the Note Purchase Agreements is hereby amended and restated to
read in its entirety as set forth below:

                  "Material Adverse Effect" means a material adverse effect on
         (a) the business, operations, affairs, financial condition, assets or
         properties of the Company and its Restricted Subsidiaries, taken as a
         whole, or (b) the ability of the Company to perform its obligations
         under this Agreement, the Other Agreements, any Security Document or
         the Notes, or (c) the validity or enforceability of this Agreement, the
         Other Agreements, any Security Document or the Notes.

         Section 1.19.     The definition of "Material Subsidiary" set forth in
Schedule B to the Note Purchase Agreements is hereby amended and restated to
read in its entirety as set forth below:

                  "Material Subsidiary" means, at any time, those Subsidiaries
         listed on Schedule 5.4 and designated as Restricted Subsidiaries, and
         any other Restricted Subsidiary having at such time either (a) total
         net revenues for the period of the immediately preceding four fiscal
         quarters equal to or greater than 10% of the consolidated total net
         revenues of the Company and its Subsidiaries for such period or (b)
         total assets, as of the last day of the immediately preceding fiscal
         quarter, equal to or greater than 10% of the Consolidated Total Assets
         as of such date, in each case as reflected in the most recent annual or
         quarterly financial statements of the Company and its Subsidiaries, and
         any other Subsidiary that is a guarantor or obligor in respect of the
         Credit Agreement.

         Section 1.20.     Schedule B to the Note Purchase Agreements is hereby
amended by adding thereto (in alphabetical order) a new definition of "Security
Agreement" reading in its entirety as set forth below:

                  "Security Agreement" is defined in Section 1.

         Section 1.21.     Schedule B to the Note Purchase Agreements is hereby
amended by adding thereto (in alphabetical order) a new definition of "Security
Documents" reading in its entirety as set forth below:

                  "Security Documents" means the Intercreditor Agreement, the
         Subsidiary Guaranty, any supplement to the Subsidiary Guaranty
         contemplated by Section 9.6(b), the

                                      -8-
<PAGE>

         Security Agreement, any supplement to the Security Agreement
         contemplated by Section 9.6(b), and any other agreement, document or
         instrument entered into by the Company and/or any Restricted Subsidiary
         providing security for the Notes.

         Section 1.22.     Schedule 5.4 to the Note Purchase Agreements is
hereby amended and restated in its entirety as set forth in Schedule 5.4 hereto.

         Section 1.23.     References in the Note Purchase Agreements to
"Exhibit 9.6" are hereby amended to read "Exhibit 9.6(b)" and a new Exhibit
9.6(a) is hereby added to the Note Purchase Agreements reading in its entirety
as set forth in Exhibit 9.6(a) attached hereto.

SECTION 2.          CONDITIONS TO EFFECTIVENESS.

            This Amendment No. 1 to Note Purchase Agreements shall not be
effective until (i) the Company and the holders of 51% in aggregate principal
amount of the outstanding Notes shall have executed and delivered this Amendment
No. 1 to Note Purchase Agreements and each of the Subsidiary Guarantors has
executed and delivered its Consent hereto, (ii) each Purchaser shall have
received from Kay Rustand, Esq., General Counsel for the Company, her legal
opinion with respect to the Company and the Subsidiary Guarantors, dated the
effective date of this Amendment No. 1 to Note Purchase Agreements, in form and
substance reasonably satisfactory to each Purchaser and special counsel to the
Purchasers, covering the matters set forth in Exhibit C attached hereto, (iii)
each Purchaser shall have received from the Company a certificate dated the
effective date of this Amendment No. 1 to Note Purchase Agreements, signed by
the Executive Vice President and Chief Financial Officer of the Company, to the
effect that the representations and warranties of the Company set forth in
Exhibit D attached hereto are true and correct on and with respect to the
effective date of this Amendment No. 1 to Note Purchase Agreements, (iv) the
Company shall have paid to each Purchaser an amendment fee in an amount equal to
0.15% of the outstanding principal amount of such Purchaser's Notes, (v) the
Company shall have paid all of the out-of-pocket expenses incurred by the
Purchasers in connection with the consummation of the transactions contemplated
by this Amendment No. 1 to Note Purchase Agreements, including, without
limitation, the fees and disbursements of Chapman and Cutler, special counsel to
the Purchasers and (vi) the Company shall have satisfied each of the following
closing conditions:

                  1.       Each of the Intercreditor Agreement (as described in
         Section 1.1 hereof) and the Security Agreement (as described in Section
         1.1 hereof) shall have been duly executed, acknowledged and delivered
         by the respective parties thereto and shall be in full force and
         effect.

                  2.       The Company and the Bank shall have entered into the
         Third Amendment to the Credit Agreement and each Purchaser shall have
         received a copy of the Credit Agreement, with all amendments thereto,
         certified as true and correct by an authorized officer of the Company.

                                      -9-
<PAGE>

                  3.       The Collateral Agent and each holder of the Notes
         shall have received reasonably satisfactory evidence that the
         Collateral is insured against fire and other casualties at replacement
         cost, together with standard mortgage clauses naming the Collateral
         Agent (for the benefit of the holders of the Notes) as mortgagee or
         secured party. The Collateral Agent and each holder of the Notes shall
         also have received reasonably satisfactory original certificates of
         general public liability insurance, naming each holder of a Note as an
         additional insured. All premiums on such policies shall be prepaid by
         the Company.

                  4.       All actions shall have been taken at the Company's
         expense as are necessary and appropriate for the holders of the Notes
         and the Bank to maintain a valid and perfected first priority lien and
         security interest in and to the collateral detailed in the Security
         Agreement, including, without limitation, the filing and recording of
         such documents and Uniform Commercial Code financing statements as may
         be necessary and appropriate, subject to Liens permitted by Section
         10.5 of the Note Purchase Agreements.

                  5.       All proceedings taken in connection with the
         transactions contemplated by this Amendment No. 1 to Note Purchase
         Agreements, and all documents necessary to the consummation thereof,
         shall be reasonably satisfactory in form and substance to you and your
         special counsel, and you shall have received a copy (executed or
         certified as may be appropriate) of all legal documents or proceedings
         taken in connection with the consummation of said transactions
         (including, without limitation, approving resolutions duly adopted by
         the respective Board of Directors of the Company and each Subsidiary
         Guarantor and accompanied by a certificate by the Secretary or
         Assistant Secretary of the Company and each Subsidiary Guarantor
         stating that such resolutions are true and correct, have not been
         altered or repealed and are in full force and effect).

                  6.       As of the effective date of this Amendment No. 1 to
         Note Purchase Agreements (after giving effect to the amendments
         contemplated hereby), no Default or Event of Default shall have
         occurred and be continuing.

SECTION 3.          MISCELLANEOUS.

         Section 3.1.      This Amendment No. 1 to Note Purchase Agreements
shall be construed and enforced in accordance with, and the rights of the
parties shall be governed by, the law of the State of New York excluding
choice-of-law principles of the law of such State that would require the
application of the laws of a jurisdiction other than such State.

         Section 3.2.      This Amendment No. 1 to Note Purchase Agreements may
be executed in any number of counterparts, each executed counterpart
constituting an original but all together only one agreement.

         Section 3.3.      Except to the extent hereby amended, the Note
Purchase Agreements are in all respects hereby ratified, confirmed and approved.

                                      -10-
<PAGE>

         Section 3.4.      The capitalized terms used in this Amendment No. 1 to
Note Purchase Agreements shall have the respective meanings specified in the
Note Purchase Agreements unless otherwise herein defined or the context hereof
shall otherwise require.

         Section 3.5.      Any and all notices, requests, certificates and other
instruments, including the Notes, may refer to the "Note Purchase Agreement" or
the "Note Purchase Agreement dated September 15, 1997" without making specific
reference to this Amendment No. 1 to Note Purchase Agreements, but nevertheless
all such references shall be deemed to include this Amendment No. 1 to Note
Purchase Agreements unless the context shall otherwise require.

                                      -11-
<PAGE>

         Section 3.6.      This Amendment No. 1 to Note Purchase Agreements and
all covenants herein contained shall be binding upon and inure to the benefit of
the respective successors and assigns of the parties hereto. All covenants made
by the Company herein shall survive the closing and the delivery of this
Amendment No. 1 to Note Purchase Agreements.

                                          RELIANCE STEEL & ALUMINUM CO.

                                          By
                                             Its

The foregoing is hereby agreed
to as of the date first written above.

                                          GREAT-WEST LIFE & ANNUITY INSURANCE
                                            COMPANY

                                          By
                                             Its

                                          By
                                             Its

                                          TRANSAMERICA OCCIDENTAL LIFE INSURANCE
                                            COMPANY

                                          By
                                             Its

                                      -12-
<PAGE>

                                          ALLSTATE LIFE INSURANCE COMPANY

                                          By
                                          Name:

                                          By
                                          Name:
                                               Authorized Signatories

                                          MASSACHUSETTS MUTUAL LIFE INSURANCE
                                            COMPANY

                                          By: David L. Babson & Company Inc.,
                                              as Investment Adviser

                                          By
                                             Its

                                          UNITED OF OMAHA LIFE INSURANCE COMPANY

                                          By
                                             Its

                                      -13-
<PAGE>

                                          CUNA MUTUAL INSURANCE SOCIETY

                                          By: members capital advisors, inc.,
                                              Its Investment Advisor

                                          By ___________________________________
                                             Its

                                          CUNA MUTUAL LIFE INSURANCE COMPANY

                                          By: members capital advisors, inc.,
                                              Its Investment Advisor

                                          By ___________________________________
                                             Its

                                      -14-
<PAGE>

             CONSENT TO AMENDMENT NO. 1 TO NOTE PURCHASE AGREEMENTS

         The undersigned hereby acknowledges receipt of a counterpart original
of, and consents to, the foregoing Amendment No. 1 to Note Purchase Agreements
dated as of July 1, 2003 and the Security Agreement and the Intercreditor
Agreement described therein.

         The undersigned hereby ratifies and confirms in all respects its
obligations under its Subsidiary Guaranty dated September 15, 1997 in favor of
the holders of the Notes.

         This Consent to Amendment No. 1 to Note Purchase Agreements is
furnished for good and valuable consideration the receipt and sufficiency of
which are hereby acknowledged by the undersigned, and the undersigned
understands and intends that the Purchasers will rely on the foregoing and that
the undersigned will be legally bound by the foregoing. This Consent to
Amendment No. 1 to Note Purchase Agreements shall inure to the benefit of the
Purchasers and their respective successors and assigns.

         IN WITNESS WHEREOF, the undersigned has executed and delivered this
Consent to Amendment No. 1 to Note Purchase Agreements as of July __, 2003,
pursuant to proper authority duly granted.

                                             [SUBSIDIARY GUARANTORS]

                                             By
                                                Its

<PAGE>

                           FORM OF SECURITY AGREEMENT

                                    EXHIBIT A
                (to Amendment No. 1 to Note Purchase Agreements)

<PAGE>

                         FORM OF INTERCREDITOR AGREEMENT

                                    EXHIBIT B
                (to Amendment No. 1 to Note Purchase Agreements)

<PAGE>

                    DESCRIPTION OF OPINION OF COMPANY COUNSEL

         The opinion of Kay Rustand, Esq., General Counsel for the Company, with
respect to the Company and each Subsidiary Guarantor, which is called for by
Section 2 of Amendment No. 1 to Note Purchase Agreements, shall be dated the
effective date of Amendment No. 1 to Note Purchase Agreements and addressed to
the Purchasers, shall be reasonably satisfactory in scope and form to the
Purchasers and shall be to the effect that:

                  (1)      The Company is a corporation, duly incorporated,
         legally existing and in good standing under the laws of the State of
         California, has corporate power and authority and is duly authorized to
         enter into and perform Amendment No. 1 to Note Purchase Agreements, the
         Security Agreement and the Intercreditor Agreement;

                  (2)      Each Subsidiary Guarantor is a corporation, duly
         incorporated, legally existing and in good standing under the laws of
         its jurisdiction of incorporation, has corporate power and authority
         and is duly authorized to enter into and perform its obligations under
         its Consent to Amendment No. 1 to Note Purchase Agreements dated as of
         July 1, 2003 (each a "Consent"), the Subsidiary Guaranty and the
         Security Agreement;

                  (3)      Each of Amendment No. 1 to Note Purchase Agreements,
         the Security Agreement and the Intercreditor Agreement has been duly
         authorized, executed and delivered by the Company and constitutes the
         legal, valid and binding contract and agreement of the Company
         enforceable in accordance with its terms, subject to applicable
         bankruptcy, insolvency or similar laws affecting creditors' rights
         generally, and subject, as to enforceability, to general principles of
         equity (regardless of whether enforcement is sought in a proceeding in
         equity or at law);

                  (4)      Each of the Consents, the Subsidiary Guaranty and the
         Security Agreement has been duly authorized, executed and delivered by
         each Subsidiary Guarantor and constitutes the legal, valid and binding
         contract and agreement of each Subsidiary Guarantor enforceable in
         accordance with its terms, subject to applicable bankruptcy, insolvency
         or similar laws affecting creditors' rights generally, and subject, as
         to enforceability, to general principles of equity (regardless of
         whether enforcement is sought in a proceeding in equity or at law);

                  (5)      No approval, consent or withholding of objection on
         the part of, or filing, registration or qualification with, any
         governmental body, Federal, state or local, is necessary in connection
         with the execution and delivery of Amendment No. 1 to Note Purchase
         Agreements, the Security Agreement, the Intercreditor Agreement, the
         Consents or the Subsidiary Guaranty;

                  (6)      The execution, delivery and performance by the
         Company of Amendment No. 1 to Note Purchase Agreements, the Security
         Agreement and the Intercreditor Agreement does not conflict with or
         result in any breach of any of the provisions of or constitute a
         default under or result in the creation or imposition of any Lien
         (other than the Lien created by the Security Agreement) upon any of the
         property of the Company

                                   EXHIBIT C
                (to Amendment No. 1 to Note Purchase Agreements)

<PAGE>

         pursuant to the provisions of the Articles of Incorporation or By-laws
         of the Company or any agreement or other instrument known to such
         counsel to which the Company is a party or by which the Company may be
         bound;

                  (7)      The execution, delivery and performance by each
         Subsidiary Guarantor of the Subsidiary Guaranty and the Security
         Agreement does not conflict with or result in any breach of any of the
         provisions of or constitute a default under or result in the creation
         or imposition of any Lien (other than the Lien created by the Security
         Agreement) upon any of the property of any Subsidiary Guarantor
         pursuant to the provisions of the [Articles/Certificate] of
         Incorporation or By-laws of any Subsidiary Guarantor or any agreement
         or other instrument known to such counsel to which any Subsidiary
         Guarantor is a party or by which any Subsidiary Guarantor may be bound;
         and

                  (8)      The Security Agreement and/or financing statements or
         similar notices with respect thereto have been filed for record or
         recorded in all public offices wherein such filing or recordation is
         necessary to perfect the Lien in the Collateral (as defined in the
         Intercreditor Agreement) as against creditors of and purchasers from
         the Company, and each Subsidiary Guarantor. The Security Agreement
         creates a perfected Lien in the Collateral in favor of Bank of America,
         N.A., as Collateral Agent, for the benefit of the holders of the Notes,
         subject only to the liens and encumbrances permitted thereby.

         The opinion of Kay Rustand, Esq. shall cover such other matters
relating to Amendment No. 1 to Note Purchase Agreements, the Security Agreement
and the Intercreditor Agreement as the Purchasers may reasonably request,
including, without limitation, that such opinion may be relied upon by
subsequent holders of the Notes. With respect to matters of fact on which such
opinion is based, such counsel shall be entitled to rely on appropriate
certificates of public officials and officers of the Company and each Subsidiary
Guarantor.

                                      C-2

<PAGE>

                         REPRESENTATIONS AND WARRANTIES

         The Company hereby represents and warrants to each holder of any Note
that:

                  1.       The Company is a corporation, duly organized, legally
         existing, and in good standing under the laws of the State of
         California, and is duly qualified as a foreign corporation and in good
         standing in all other states wherein the nature of its business or its
         assets make such qualification necessary.

                  2.       The Company's execution and delivery of the Amendment
         No. 1 to Note Purchase Agreements, the Security Agreement and the
         Intercreditor Agreement and performance of its obligations hereunder
         and thereunder: (a) are and will be within its corporate powers; (b)
         are duly authorized by the Company's board of directors; (c) are not
         and will not be in contravention of any law, statute, rule or
         regulation, the terms of the Company's Articles of Incorporation or
         bylaws, nor of any preferred stock provision, indenture, agreement or
         undertaking to which the Company or any of its properties are bound;
         (d) do not require any consent or approval (including governmental)
         which has not been given; and (e) will not result in the imposition of
         Liens, charges or encumbrances on any of its properties or assets,
         except those in favor of the holders of the Notes and the Bank
         hereunder.

                  3.       The Amendment No. 1 to Note Purchase Agreements, the
         Security Agreement and the Intercreditor Agreement, when duly executed
         and delivered, will constitute the legal, valid and binding obligations
         of the Company, enforceable in accordance with their respective terms.

                  4.       All balance sheets, income statements and other
         financial data which have been furnished to any holder of a Note by the
         Company to induce such holder of a Note to enter into the Amendment No.
         1 to Note Purchase Agreements do fairly represent the Company's
         financial condition as of the dates for which the same are furnished.
         All such financial statements, reports, papers and other data furnished
         to any holder of a Note are accurate and correct in all material
         respects and complete insofar as completeness may be necessary to give
         such holder of a Note a true and accurate knowledge of the subject
         matter. Since the date of such financial statements, no material
         adverse change has occurred in the operations or condition, financial
         or otherwise, of the Company, nor has the Company incurred since
         December 31, 2002, any material liabilities or made any material
         investment or guarantees, direct or contingent, in any single case or
         in the aggregate.

                  5.       The Company is the true and lawful owner of the
         assets pledged pursuant to the terms of the Security Agreement.

                  6.       All of the Company's representations and warranties
         set forth in Section 5 of the Note Purchase Agreements are true and
         correct on and as of the effective date hereof with the same effect as
         though made and repeated by the Company as of the effective date
         hereof.

                                   EXHIBIT D
                (to Amendment No. 1 to Note Purchase Agreements)

<PAGE>

                  7.       (a) Neither the Company nor any of its Subsidiaries
         (i) is a blocked person described in Section 1 of Executive Order 13224
         of the September 23, 2001 Blocking Property and Prohibiting Transaction
         With Persons Who Commit and Threaten to Commit, or Support Terrorism
         (66 Fed. Reg. 49049 (2001)) or (ii) engages in any dealings or
         transactions, or is otherwise associated, with any such blocked person
         and (b) the Company and its Subsidiaries are in compliance, in all
         Material respects, with the USA Patriot Act of 2001 (signed into law
         October 26, 2001).

                                      D-2

<PAGE>

                             NAMES AND OWNERSHIP OF
                           SUBSIDIARIES OF THE COMPANY

<TABLE>
<CAPTION>
                                                                                                          PERCENTAGE
                 NAME OF SUBSIDIARY(1)                                                                   OWNED BY THE
          AND JURISDICTION OF INCORPORATION                   CLASS OF CAPITAL STOCK                      COMPANY(2)
<S>                                                           <C>                                        <C>
(3) Allegheny Steel Distributors, Inc., a Pennsylvania             Common Stock                               100%
    corporation

(3) Aluminum and Stainless, Inc., a Louisiana corporation          Common Stock                               100%

(3) American Metals Corporation, a California corporation          Common Stock                               100%

(3) AMI Metals, Inc., a Tennessee corporation                      Common Stock                               100%

(3) CCC Steel, Inc., a Delaware corporation                        Common Stock                               100%

(3) Central Plains Steel Co., a Kansas corporation                 Common Stock                               100%

(3) Chatham Steel Corporation, a Georgia corporation               Common Stock                               100%

(3) Durrett Sheppard Steel Co., Inc., a California                 Common Stock                               100%
    corporation

(3) Liebovich Bros., Inc., an Illinois corporation                 Common Stock                               100%

(3) Lusk Metals, a California corporation                          Common Stock                               100%

(3) Pacific Metal Company, an Oregon corporation                   Common Stock                               100%

(3) PDM Steel Service Centers, Inc., a California                  Common Stock                               100%
    corporation

(3) Phoenix Corporation, a Georgia corporation                     Common Stock                               100%

(3) RSAC Management Corp., a California corporation                Common Stock                               100%(4)
</TABLE>

--------------------------------
(1) The Company owns certain shell corporations for the purpose of protecting
    the names "Reliance Steel Company" in Nevada; "Reliance Metalcenters" in
    Arizona, and Texas; and "Tube Service Co.," in California and a limited
    liability company in California, Matco Metals West LLC, for purposes of
    purchasing metals.

(2) The shares of all of the subsidiaries listed below (other than RSAC
    Management Corp.) are owned by RSAC Management Corp., which is a
    wholly-owned subsidiary of the Company.

(3) The above designated subsidiaries are Restricted Subsidiaries as defined in
    the Note Purchase Agreement.

                                   EXHIBIT 5.4
                (to Amendment No. 1 to Note Purchase Agreements)

<PAGE>

<TABLE>
<CAPTION>
                                                                                                          PERCENTAGE
                 NAME OF SUBSIDIARY(1)                                                                   OWNED BY THE
          AND JURISDICTION OF INCORPORATION                    CLASS OF CAPITAL STOCK                     COMPANY(2)
<S>                                                            <C>                                       <C>
(3) Service Steel Aerospace Corp., a Delaware corporation           Common Stock                              100%

(3) Siskin Steel & Supply Company, Inc., a Tennessee             Voting Common Stock                          100%
    corporation                                                Non-voting Common Stock                        100%

(3) Toma Metals, Inc., a Pennsylvania corporation                   Common Stock                              100%

(3) Valex Corp., a California corporation                           Common Stock                             97.4%

(3) Viking Materials, Inc., a Minnesota corporation              Voting Common Stock                          100%
                                                               Non-voting Common Stock                        100%
</TABLE>

<TABLE>
<CAPTION>
                                                                                                         PERCENTAGE
          NAME OF AFFILIATE                                                                               OWNED BY
  AND JURISDICTION OF INCORPORATION                               EQUITY INTEREST                        THE COMPANY
<S>                                                            <C>                                       <C>
American Steel, LLC, an Oregon limited                         Membership Interests                         50.5%
liability company
</TABLE>

RESTRICTIONS

         The Restricted Subsidiaries of the Company are guarantors of the
Company's primary credit facility with Bank of America, National Association, as
Administrative Agent and the Lenders listed therein, and, accordingly, are
subject to certain restrictions, none of which would prohibit any such
Restricted Subsidiary from paying dividends to the Company out of profits or
making any other similar distributions of profits to the Company.

         When the Company merged MetalCenter, Inc. with and into the Company,
the Company became obligated on those Variable Rate Demand Industrial
Development Revenue Bonds, Series 1989 A, issued by MetalCenter, Inc., in favor
of Industrial Development Authority of the City of Santa Fe Springs, a public,
corporate instrumentality of the state of California, due July 1, 2014, with a
principal balance of $2.75 million as of December 31, 2002, which are secured by
a letter of credit issued by Bank of America, National Association, which
contain certain restrictions but do not prohibit the Company from paying
dividends out of profits or making any other similar distributions from profits.

------------------------------------------
(4)  RSAC Management Corp. provides certain administrative and financial
     services to the subsidiaries, but is not a metals service center.

                                     5.4-2

<PAGE>

         When the Company acquired Viking Materials, Inc., Viking Materials,
Inc. was obligated on those Variable Rate Demand Industrial Development Revenue
Bonds, Series 1999, issued by Viking Materials, Inc., in favor of the City of
Minneapolis, a public, corporate instrumentality in the state of Minnesota, due
March 1, 2009, with a principal balance of $2.25 million as of December 31,
2002, which are secured by a letter of credit issued by Bank of America,
National Association, which contain certain restrictions but do not prohibit
Viking Materials, Inc. from paying dividends out of profits or making any other
similar distributions from profits to the Company.

         When the Company acquired an additional membership unit of American
Steel, L.L.C. effective May 1, 2002, the Company began consolidating the
financial results of American Steel, L.L.C, including its obligations under that
Credit Agreement dated as of May 1, 2002 in favor of Bank of America, National
Association, due June 30, 2004, with a principal balance of $21.43 million as of
December 31, 2002, which contains certain restrictions including a prohibition
limiting dividends that can be paid out of profits or other similar
distributions from profits to the Company and the minority owner of the
remainder of the joint venture as set forth in the Operating Agreement with
respect to American Steel, L.L.C., as amended.

OFFICERS AND DIRECTORS OF THE COMPANY

OFFICERS

      NAME                                    POSITION

David H. Hannah                  Chief Executive Officer
Gregg J. Mollins                 President and
                                  Chief Operating Officer
Karla R. McDowell                Executive Vice President and Chief Financial
                                 Officer
James P. MacBeth                 Senior Vice President, Carbon Steel Operations
William K. Sales, Jr.            Senior Vice President, Non-Ferrous Operations
Donna Newton                     Vice President, Human Resources
Kay Rustand                      Vice President and General Counsel
Yvette M. Schiotis               Secretary

                                     5.4-3

<PAGE>

DIRECTORS

Joe D. Crider
Thomas W. Gimbel
Douglas M. Hayes
Robert Henigson
David H. Hannah
Franklin R. Johnson
Gregg J. Mollins
William I. Rumer
Leslie A. Waite

                                     5.4-4

<PAGE>

         FORM OF EVIDENCE WITH RESPECT TO RELEASE OF SECURITY AGREEMENT

                                 EXHIBIT 9.6(a)
                (to Amendment No. 1 to Note Purchase Agreements)