Document:

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                                                                 EXHIBIT 10.1(b)

                       FIRST AMENDMENT TO CREDIT AGREEMENT

            THIS FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of August 6, 2002
(this "Amendment"), is among STEEL DYNAMICS, INC. (the "Borrower"), the Lenders
(as defined below) signatories hereto, JPMORGAN CHASE BANK, as administrative
agent for the Lenders (in such capacity, the "Administrative Agent") and MORGAN
STANLEY SENIOR FUNDING, INC., as Arranger and Syndication Agent.

                              W I T N E S S E T H:

            WHEREAS, the Borrower, certain financial institutions and other
Persons (such capitalized term and other capitalized terms used in these
recitals to have the meanings set forth or defined by reference in Part I below)
from time to time parties thereto (collectively, the "Lenders"), JPMorgan Chase
Bank, as Collateral Agent, the Administrative Agent, General Electric Capital
Corporation, as Documentation Agent, and Morgan Stanley Senior Funding, Inc., as
Arranger and Syndication Agent, are parties to the Credit Agreement, dated as of
March 26, 2002 (the "Existing Credit Agreement");

            WHEREAS, the Borrower has requested that the Lenders amend the
Existing Credit Agreement as set forth below; and

            WHEREAS, the Lenders have agreed, subject to the terms and
conditions hereinafter set forth, to amend the Existing Credit Agreement in
certain respects (the Existing Credit Agreement, as so amended or otherwise
modified by this Amendment, being referred to as the "Credit Agreement");

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

                                     PART I
                                   DEFINITIONS

            SUBPART 1.1. Certain Definitions. The following terms (whether or
not underscored) when used in this Amendment shall have the following meanings
(such meanings to be equally applicable to the singular and plural forms
thereof):

            "Administrative Agent" is defined in the preamble.

            "Amendment" is defined in the preamble.

            "Borrower" is defined in the preamble.

            "Credit Agreement" is defined in the third recital.

            "Existing Credit Agreement" is defined in the first recital.

            "First Amendment Effective Date" is defined in Subpart 3.1.
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            "Lenders" is defined in the first recital.

            SUBPART 1.2. Other Definitions. Terms for which meanings are
provided in the Existing Credit Agreement are, unless otherwise defined herein
or the context otherwise requires, used in this Amendment with such meanings.

                                    PART II
                                   AMENDMENTS

            Effective on (and subject to the occurrence of) the First Amendment
Effective Date, the Existing Credit Agreement is hereby amended in accordance
with this Part; except as so amended or otherwise modified by this Amendment,
the Existing Credit Agreement and the Loan Documents shall continue in full
force and effect in accordance with their terms.

            SUBPART 2.1. Amendment to Article I. Article I of the Existing
Credit Agreement is hereby amended in accordance with Subparts 2.1.1 and 2.1.2.

                  SUBPART 2.1.1. Section 1.01 of the Existing Credit Agreement
      is hereby amended by (a) deleting the reference to "$10,000,000" appearing
      in the definition of "Letter of Credit Facility" and inserting a reference
      to "$15,000,000" in replacement therefor and (b) inserting immediately
      after the phrase "any capital expenditures" in clause (iv) of the
      definition of "Fixed Charge Coverage Ratio" the phrase "(other than the
      Capital Expenditures referred to in clauses (i) and (ii) of the proviso to
      Section 5.02(p))".

                  SUBPART 2.1.2. Section 1.01 of the Existing Credit Agreement
      is hereby further amended by inserting the following new definitions
      therein in the appropriate alphabetical order:

                  "First Amendment" means the First Amendment, dated as of
            August 6, 2002, to this Agreement among the Borrower, the
            Administrative Agent, Morgan Stanley Senior Funding, Inc. and the
            Lenders parties thereto.

                  "First Amendment Effective Date" is defined in Subpart 3.1 of
            the First Amendment.

                  "Pittsboro Mill" means that certain mini-mill in Pittsboro,
            Indiana to be acquired from Qualitech Steel SBQ LLC in connection
            with the Pittsboro Mill Acquisition.

                  "Pittsboro Mill Acquisition" means the acquisition by a new
            wholly owned Subsidiary of the Borrower of all of the assets of a
            special bar quality mini-mill in Pittsboro, Indiana from Qualitech
            Steel SBQ LLC for aggregate consideration of no more than
            $45,000,000 in cash, all as further described in the letter dated
            August 5, 2002 from the Borrower to the Lenders, a copy of which is
            attached hereto as Annex A (the "Pittsboro Mill Letter").

            SUBPART 2.2. Amendment to Article V. Article V of the Existing
Credit Agreement is hereby amended in accordance with Subparts 2.2.1 through
2.2.5.

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            SUBPART 2.2.1. Clause (f) of Section 5.02 of the Existing Credit
Agreement is hereby amended by (a) deleting the reference to "$5,000,000"
appearing in sub-clause (i)(A) thereof and inserting a reference to "$6,500,000"
in replacement therefor, (b) deleting the reference to "$5,000,000" appearing in
sub-clause (vii)(A) thereof and inserting a reference to "$15,000,000" in
replacement therefor and (c) deleting the reference to "$5,000,000" appearing in
sub-clause (vii)(B) thereof and inserting a reference to "$15,000,000" in
replacement therefor.

            SUBPART 2.2.2. Clause (f) of Section 5.02 of the Existing Credit
Agreement is hereby further amended by (a) deleting the punctuation mark "."
appearing at the end of sub-clause (viii) thereof and inserting the punctuation
mark ";" in replacement therefor and (b) inserting at the end thereof the
following new sub-clauses (ix), (x) and (xi):

      "(ix) equity Investments by the Borrower in a newly formed wholly owned
Subsidiary in an aggregate amount of no more than $115,000,000 for the purpose
of making the Pittsboro Mill Acquisition in an amount not to exceed $45,000,000
and making Capital Expenditures relating to the Pittsboro Mill for conversion
thereof into a facility for the manufacture of merchant bar and reinforcing bar
products and related purposes in an aggregate amount not to exceed $70,000,000,
all subject to the Borrower's obligations under Section 5.01(j) of the Credit
Agreement and to the limitations contained in the proviso to Section 5.02(p) of
the Credit Agreement;

      (x) the Pittsboro Mill Acquisition; and

      (xi) an Investment of no more than $2,500,000 by the Borrower in the form
of a subordinated loan by the Borrower to NMBS, evidenced by a subordinated
promissory note, a copy of which is attached hereto as Annex B."

            SUBPART 2.2.3. Clause (h) of Section 5.02 of the Existing Credit
Agreement is amended by inserting immediately before the period at the end
thereof the following phrase:

"other than certain leases relating to the Pittsboro Mill described and subject
to the terms set forth in Annex C to the First Amendment".

            SUBPART 2.2.4. Clause (p) of Section 5.02 of the Existing Credit
Agreement is hereby amended by inserting at the end thereof the following new
proviso:

"provided, however, that for the Fiscal Years ending on December 31, 2002 and
December 31, 2003 (i) an additional Capital Expenditure of no more than
$45,000,000 may be made with respect to the Pittsboro Mill Acquisition, (ii)
additional aggregate Capital Expenditures of no more than $70,000,000 may be
made with respect to the Pittsboro Mill if (and only if) at the time and after
giving effect to each such Capital Expenditures, the aggregate Revolving Credit
Advances do not exceed 50% of the aggregate Revolving Credit Commitments at such
time and (iii) additional aggregate Capital Expenditures of no more than
$30,000,000 may be made with respect the addition of a paint line within the
Borrower's flat roll mill in Butler, Indiana."

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            SUBPART 2.2.5. Clause (q) of Section 5.02 of the Existing Credit
      Agreement is amended by deleting the reference to "Section 5.02(f)(i) or
      (vii)" appearing in clause (i) thereof and inserting a reference to
      "Section 5.02(f)(i), (vii) or (ix)" in replacement therefor.

            SUBPART 2.3. Amendment to Schedules. Schedule 4.01(u) of the
Existing Credit Agreement is hereby amended by deleting paragraph 13 thereof.

                                    PART III
                          CONDITIONS TO EFFECTIVENESS

            SUBPART 3.1. Effectiveness. This Amendment and the amendments
contained herein shall become effective on the date (the "First Amendment
Effective Date") when each of the conditions set forth in this Part shall have
been fulfilled to the satisfaction of the Administrative Agent provided that
such conditions are in any event fulfilled no later than October 31, 2002.

                  SUBPART 3.1.1. Execution of Counterparts. The Administrative
      Agent and the Arranger shall have received counterparts of this Amendment,
      duly executed and delivered on behalf of the Borrower, the Administrative
      Agent and the Required Lenders.

                  SUBPART 3.1.2. Amendment Fee. The Administrative Agent shall
      have received, for the account of (a) each Lender which shall have
      executed this Amendment before 12:00 p.m. (New York time) on August 9,
      2002, an amendment fee in an aggregate amount equal to .25% of the
      aggregate amount of each such Lender's Advances and Commitments and (b)
      each Lender which shall have executed this Amendment after 12:00 p.m. (New
      York time) on August 9, 2002 and before 5:00 p.m. (New York time) on
      August 13, 2002, an amendment fee in an aggregate amount equal to .15% of
      the aggregate amount of each such Lender's Advances and Commitments.

                  SUBPART 3.1.3. Expenses. The Borrower shall have paid all
      expenses (including the fees and expenses of Shearman & Sterling) incurred
      in connection with the preparation, negotiation and execution of this
      Amendment and foregoing matters relating to the Credit Agreement from and
      after the closing thereof to the extent invoiced.

                  SUBPART 3.1.4. Pittsboro Mill Acquisition. No litigation shall
      be pending that enjoins or seeks to enjoin the Pittsboro Mill Acquisition
      or which otherwise seeks to prevent the Borrower from obtaining clear
      title to the Pittsboro Mill assets unless (a)(i) in the event that and
      during such time as there is pending litigation enjoining or seeking to
      enjoin the Borrower's acquisition of the Pittsboro Mill, or if for any
      other reason the Borrower's right and title to the Pittsboro Mill assets
      is the subject of pending litigation, the Borrower shall have ensured that
      if and to the extent consummated, closing of the Pittsboro Mill
      Acquisition shall be structured, in a manner satisfactory to the
      Administrative Agent and the Arranger, so as to segregate and preserve
      both the Pittsboro Mill assets and the consideration paid by the Borrower
      therefor; and such structure shall be maintained until such time as the
      Borrower's clear title to the Pittsboro Mill assets has been finally
      favorably adjudicated or otherwise favorably settled without material

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      increased cost (a "Final Determination") and (ii) until such time of a
      Final Determination, the Borrower shall not place any non-cancelable
      orders (nor any cancelable orders the cancellation of which would involve
      any material costs) for or otherwise expend any material Capital
      Expenditures related to the Pittsboro Mill Acquisition or (b) consented to
      by the Required Lenders.

                  SUBPART 3.1.5. Legal Details, etc. All documents executed or
      submitted pursuant hereto shall be satisfactory in form and substance to
      the Administrative Agent and the Arranger and Shearman & Sterling as
      counsel. The Administrative Agent, the Arranger and counsel shall have
      received all information and such counterpart originals or such certified
      or other copies or such materials as the Administrative Agent, the
      Arranger or counsel may reasonably request, and all legal matters incident
      to the transactions contemplated by this Amendment shall be satisfactory
      to the Administrative Agent, the Arranger and counsel.

                                    PART IV
                  MISCELLANEOUS; REPRESENTATIONS AND COVENANTS

            SUBPART 4.1. Continuing Effectiveness, etc. As amended hereby, the
Credit Agreement shall remain in full force and effect and is hereby ratified
and confirmed in all respects. After the First Amendment Effective Date, all
references in the Credit Agreement and each other Loan Document to the
"Agreement" or "Credit Agreement", as applicable, shall refer to the Existing
Credit Agreement, after giving effect to this Amendment, and this Amendment
shall be a Loan Document for all purposes. The Borrower hereby confirms its
obligations under Section 8.04 of the Credit Agreement to pay all fees and
expenses of the Administrative Agent and the Arranger (including reasonable fees
and out-of-pocket expenses of Shearman & Sterling) in connection with this
Amendment and other ongoing administration of the Credit Agreement as provided
in Section 8.04 of the Credit Agreement since the last invoice it received.

            SUBPART 4.2. Guarantee Obligations and Give Security. The Borrower
hereby confirms its obligations under Section 5.01(j) of the Credit Agreement
to, and to cause any new Subsidiary formed in connection with the Pittsboro Mill
Acquisition (as defined in Subpart 2.1.2 of this Amendment) to, guarantee
obligations and give security in connection and with respect to the Pittsboro
Mill Acquisition as such obligations are described in Section 5.01(j) of the
Credit Agreement.

            SUBPART 4.3. Counterparts. This Amendment may be executed in any
number of counterparts and by the different parties on separate counterparts,
and each such counterpart shall be deemed to be an original but all such
counterparts shall together constitute one and the same Amendment.

            SUBPART 4.4. Governing Law. THIS AMENDMENT SHALL BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

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            SUBPART 4.5. Successors and Assigns. This Amendment shall be binding
upon the Borrower, the Lenders and the Agents and their respective successors
and assigns, and shall inure to their successors and assigns.

            SUBPART 4.6. Representations and Warranties. In order to induce the
Lenders to execute and deliver this Amendment, the Borrower represents and
warrants to the Agents, the Lenders and the Issuing Bank that, after giving
effect to the terms of this Amendment, the following statements are true and
correct: (a) the representations and warranties set forth in Article IV of the
Existing Credit Agreement and in the other Loan Documents are true and correct
on the First Amendment Effective Date as if made on the First Amendment
Effective Date and after giving effect to the First Amendment (unless stated to
relate solely to an earlier date, in which case such representations and
warranties were true and correct in all material respects as of such earlier
date); (b) no Default has occurred and is continuing; (c) that the Pittsboro
Mill Letter contains statements that are true and complete in all material
respects with respect to the Pittsboro Mill Acquisition and does not omit to
state any material fact necessary to make the statements made therein not
misleading and (d) the acquisition agreement for the Pittsboro Mill Acquisition
contains unqualified representations and warranties from the seller thereunder
providing that the consummation of such acquisition will not violate or
otherwise breach agreements to which such seller is a party.

            SUBPART 4.7. Modifications to this Amendment. This Amendment can be
amended, waived or otherwise modified by instrument in writing signed by the
Borrower and the Required Lenders.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

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            IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed and delivered by their respective authorized officers as of the day
and year first above written.

                               STEEL DYNAMICS, INC.

                               By: /s/ Tracy L. Shellabarger
                                  ---------------------------------------------
                                   Title:  Vice President

LENDERS:

                               JPMORGAN CHASE BANK,
                                as Administrative Agent and Collateral Agent and
                                   as a Lender

                               By: /s/ James H. Ramage
                                  ---------------------------------------------
                                   Title:  Managing Director

                               MORGAN STANLEY SENIOR FUNDING, INC.,
                                as Arranger and Syndication Agent and as a
                                   Lender

                               By: Charles C. O'Brien
                                  ---------------------------------------------
                                   Title:  Vice President

                                  [Other Lenders' Signature pages are omitted]<PAGE>
                                                                 EXHIBIT 10.3(b)

                                  $200,000,000

                              Steel Dynamics, Inc.

                          9-1/2% Senior Notes Due 2009

                               PLACEMENT AGREEMENT

March 14, 2002
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                                                                  March 14, 2002

Morgan Stanley & Co. Incorporated
J.P. Morgan Securities Inc.
BMO Nesbitt Burns Corp.
NatCity Investments, Inc.
   c/o Morgan Stanley & Co. Incorporated
   1585 Broadway
   New York, New York 10036

Dear Sirs and Mesdames:

            Steel Dynamics, Inc., an Indiana corporation (the "COMPANY"),
proposes to issue and sell to the several purchasers named in Schedule I hereto
(the "PLACEMENT AGENTS") $200,000,000 principal amount of its 9-1/2% Senior
Notes Due 2009 (the "SECURITIES") to be issued pursuant to the provisions of an
Indenture dated as of March 26, 2002 (the "INDENTURE" between the Company, the
subsidiary of the Company listed on Schedule II hereto (the "GUARANTOR") and
Fifth Third Bank, as Trustee (the "TRUSTEE"). The obligations of the Company
under the Securities and the Indenture will be unconditionally guaranteed on a
senior unsecured basis by the Guarantor pursuant to the terms of the Indenture
(the "GUARANTEE").

            The Securities will be offered without being registered under the
Securities Act of 1933, as amended (the "SECURITIES ACT"), to qualified
institutional buyers in compliance with the exemption from registration provided
by Rule 144A under the Securities Act and in offshore transactions in reliance
on Regulation S under the Securities Act ("REGULATION S").

            The Placement Agents and their direct and indirect transferees will
be entitled to the benefits of a Registration Rights Agreement dated the date
hereof between the Company, the Guarantor and the Placement Agents (the
"REGISTRATION RIGHTS AGREEMENT").

            In connection with the sale of the Securities, the Company has
prepared a preliminary offering memorandum (the "PRELIMINARY MEMORANDUM") and
will prepare a final offering memorandum (the "FINAL MEMORANDUM" and, with the
Preliminary Memorandum, each a "MEMORANDUM") including or incorporating by
reference a description of the terms of the Securities and the Guarantee, the
terms of the offering and a description of the Company and the Guarantor. As
used herein, the term "Memorandum" shall include in each case the documents
incorporated by reference therein. The terms "SUPPLEMENT", "AMENDMENT" and
"AMEND" as used herein with respect to a Memorandum shall include all documents
deemed to be incorporated by reference in the Preliminary Memorandum or Final
Memorandum that are filed subsequent to the date of such Memorandum with the
Securities and Exchange Commission (the "COMMISSION") pursuant to the Securities
Exchange Act of 1934, as amended (the "EXCHANGE ACT").

            On or prior to the Closing Date (as defined below), the Company will
enter into a new Credit Agreement (the "Credit Agreement") as described in the
Final Memorandum. The net proceeds from the offering of the Securities and the
Guarantee, together with borrowings under the Credit Agreement, will be used to
permanently repay all amounts outstanding under the Company's existing (i)
$450.0 million amended and restated credit agreement dated as of June 30, 1997,
as amended, by and among the Company, the Lenders parties thereto from time to
time, Mellon Bank, N.A., as Agent for the Lenders thereunder and as Issuing
Bank, Kreditanstalt Fur Wiederaufbau and Comerica Bank, as Senior Co-Agents and
Banque Nationale de Paris, NBD Bank, N.A. and The Industrial Bank of Japan,
Limited, as Co-Agents, (ii) $45.0 million credit agreement dated as of May 5,
2000 by and among the Company, the Lenders parties thereto from time to time and
Mellon Bank, N.A., as Agent for the Lenders thereunder, and terminate such
existing credit agreement and for general working capital purposes.

            1. Representations and Warranties. The Company and the Guarantor,
jointly and severally, represent and warrant to, and agree with, you that:
<PAGE>
            (a) (i) Each document, if any, filed or to be filed pursuant to the
      Exchange Act and incorporated by reference in either Memorandum complied
      or will comply when so filed in all material respects with the Exchange
      Act and the applicable rules and regulations of the Commission thereunder
      and (ii) the Preliminary Memorandum does not contain and the Final
      Memorandum, in the form used by the Placement Agents to confirm sales and
      on the Closing Date (as defined in Section 4), will not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements therein, in the light of the circumstances under which
      they were made, not misleading, except that the representations and
      warranties set forth in this paragraph do not apply to statements or
      omissions in either Memorandum based upon information relating to any
      Placement Agent furnished to the Company in writing by such Placement
      Agent through you expressly for use therein.

            (b) The Company has been duly incorporated, is validly existing as a
      corporation in good standing under the laws of the jurisdiction of its
      incorporation, has the corporate power and authority to own its property
      and to conduct its business as described in each Memorandum and is duly
      qualified to transact business and is in good standing in each
      jurisdiction in which the conduct of its business or its ownership or
      leasing of property requires such qualification, except to the extent that
      the failure to be so qualified or be in good standing would not have a
      material adverse effect on the Company and its subsidiaries, taken as a
      whole.

            (c) Each subsidiary of the Company has been duly incorporated, is
      validly existing as a corporation in good standing under the laws of the
      jurisdiction of its incorporation, has the corporate power and authority
      to own its property and to conduct its business as described in each
      Memorandum and is duly qualified to transact business and is in good
      standing in each jurisdiction in which the conduct of its business or its
      ownership or leasing of property requires such qualification, except to
      the extent that the failure to be so qualified or be in good standing
      would not have a material adverse effect on the Company and its
      subsidiaries, taken as a whole; each subsidiary of the Company and the
      percentage of capital stock and voting stock of each such subsidiary owned
      by the Company is set forth on Schedule III hereto and all of the issued
      shares of capital stock of each subsidiary of the Company have been duly
      and validly authorized and issued, are fully paid and non-assessable and
      are owned directly by the Company, free and clear of all liens,
      encumbrances, equities or claims.

            (d) This Agreement has been duly authorized, executed and delivered
      by the Company and the Guarantor.

            (e) The shares of common stock outstanding on the date hereof have
      been duly authorized and are validly issued, fully paid and
      non-assessable.

            (f) The Securities have been duly authorized and, when executed and
      authenticated in accordance with the provisions of the Indenture and
      delivered to and paid for by the Placement Agents in accordance with the
      terms of this Agreement, will be valid and binding obligations of the
      Company, enforceable in accordance with their terms, subject to applicable
      bankruptcy, insolvency or similar laws affecting creditors' rights
      generally and general principles of equity, and will be entitled to the
      benefits of the Indenture and the Registration Rights Agreement.

            (g) The Guarantee has been duly authorized by the Guarantor and,
      upon execution and delivery of the Indenture by the Guarantor and the
      Company, will be a valid and binding obligations of the Guarantor,
      enforceable in accordance with its terms, subject to applicable
      bankruptcy, insolvency or similar laws affecting creditors' rights
      generally and general principles of equity.

            (h) The Indenture has been duly authorized and, when executed and
      delivered by the Company and each Guarantor, will be a valid and binding
      agreement of the Company and each Guarantor, enforceable in accordance
      with its terms, subject to applicable bankruptcy, insolvency or similar
      laws affecting creditors' rights generally and general principles of
      equity.

            (i) The Registration Rights Agreement has been duly authorized,
      executed and delivered by, and is a valid and binding agreement of, the
      Company and each Guarantor, enforceable in accordance with

                                       2
<PAGE>
      its terms, subject to applicable bankruptcy, insolvency or similar laws
      affecting creditors' rights generally and general principles of equity and
      except as rights to indemnification and contribution under the
      Registration Rights Agreement may be limited under applicable law.

            (j) The execution and delivery by the Company and the Guarantor of,
      and the performance by the Company and the Guarantor of their respective
      obligations under, this Agreement, the Indenture, the Registration Rights
      Agreement, the Securities (in the case of the Company), the Guarantee (in
      the case of the Guarantor) and the Credit Agreement will not contravene
      any provision of applicable law or the articles of incorporation or
      by-laws of the Company or the Guarantor or any agreement or other
      instrument binding upon the Company or any of its subsidiaries that is
      material to the Company and its subsidiaries, taken as a whole, or any
      judgment, order or decree of any governmental body, agency or court having
      jurisdiction over the Company or any subsidiary, and no consent, approval,
      authorization or order of, or qualification with, any governmental body or
      agency is required for the performance by the Company or the Guarantor of
      their respective obligations under this Agreement, the Indenture, the
      Registration Rights Agreement, the Securities (in the case of the
      Company), the Guarantee (in the case of the Guarantor) and the Credit
      Agreement, except such as may be required by the securities or Blue Sky
      laws of the various states in connection with the offer and sale of the
      Securities and by Federal and state securities laws with respect to the
      Company's and the Guarantor's obligations under the Registration Rights
      Agreement.

            (k) There has not occurred any material adverse change, or any
      development involving a prospective material adverse change, in the
      condition, financial or otherwise, or in the earnings, business or
      operations of the Company and its subsidiaries, taken as a whole, from
      that set forth in the Final Memorandum (exclusive of any amendments or
      supplements thereto subsequent to the date of this Agreement).

            (l) There are no legal or governmental proceedings pending or
      threatened to which the Company or any of its subsidiaries is a party or
      to which any of the properties of the Company or any of its subsidiaries
      is subject other than proceedings accurately described in all material
      respects in each Memorandum and proceedings that would not have a material
      adverse effect on the Company and its subsidiaries, taken as a whole, or
      on the power or ability of the Company or the Guarantor to perform their
      respective obligations under this Agreement, the Indenture, the
      Registration Rights Agreement, the Securities (in the case of the
      Company), the Guarantee (in the case of the Guarantor) and the Credit
      Agreement or to consummate the transactions contemplated by the Final
      Memorandum.

            (m) Each of the Company and its subsidiaries has all necessary
      consents, authorizations, approvals, orders, certificates and permits of
      and from, and has made all declarations and filings with, all federal,
      state, local and other governmental authorities, all self-regulatory
      organizations and all courts and other tribunals, to own, lease, license
      and use its properties and assets and to conduct its business in the
      manner described in the Final Memorandum, except to the extent that the
      failure to obtain such consents, authorizations, approvals, orders,
      certificates and permits or make such declarations and filings would not
      have a material adverse effect on the Company and its subsidiaries, taken
      as a whole. Neither the Company nor any of its subsidiaries has received
      any notice of proceedings relating to the revocation or modification of
      any such consent, authorization, approval, order, certificate or permit
      which, singly or in the aggregate, if the subject of an unfavorable
      decision, ruling or finding, would result in a material adverse change in
      the condition, financial or otherwise, or in the earnings, business or
      operations of the Company and its subsidiaries, taken as a whole, except
      as described in or contemplated by the Final Memorandum.

            (n) The Company and its subsidiaries (i) are in compliance with any
      and all applicable foreign, federal, state and local laws and regulations
      relating to the protection of human health and safety, the environment or
      hazardous or toxic substances or wastes, pollutants or contaminants
      ("ENVIRONMENTAL LAWS"), (ii) have received all permits, licenses or other
      approvals required of them under applicable Environmental Laws to conduct
      their respective businesses and (iii) are in compliance with all terms and
      conditions of any such permit, license or approval, except where such
      noncompliance with Environmental Laws, failure to receive required
      permits, licenses or other approvals or failure to comply with the terms
      and conditions of such permits, licenses or approvals would not, singly or
      in the aggregate, have a material adverse effect on the Company and its
      subsidiaries, taken as a whole.

                                       3
<PAGE>
            (o) In the ordinary course of business, the Company conducts a
      periodic review of the effect of Environmental Laws on the business,
      operations and properties of the Company and its subsidiaries, in the
      course of which it identifies and evaluates associated costs and
      liabilities (including, without limitation, any capital or operating
      expenditures required for clean-up, closure of properties or compliance
      with Environmental Laws or any permit, license or approval, any related
      constraints on operating activities and any potential liabilities to third
      parties). On the basis of such review, the Company has reasonably
      concluded that such associated costs and liabilities would not, singly or
      in the aggregate, have a material adverse effect on the Company and its
      subsidiaries, taken as a whole.

            (p) Neither the Company nor the Guarantor, after giving effect to
      the offering and sale of the Securities and the application of the
      proceeds thereof as described in the Final Memorandum, will be an
      "investment company" as such term is defined in the Investment Company Act
      of 1940, as amended.

            (q) None of the Company, any Guarantor or any affiliate (as defined
      in Rule 501(b) of Regulation D under the Securities Act, an "Affiliate")
      of the Company or any Guarantor has directly, or through any agent, (i)
      sold, offered for sale, solicited offers to buy or otherwise negotiated in
      respect of, any security (as defined in the Securities Act) which is or
      will be integrated with the sale of the Securities in a manner that would
      require the registration under the Securities Act of the Securities or
      (ii) engaged in any form of general solicitation or general advertising in
      connection with the offering of the Securities, (as those terms are used
      in Regulation D under the Securities Act) or in any manner involving a
      public offering within the meaning of Section 4(2) of the Securities Act.

            (r) None of the Company, any Guarantor, their Affiliates or any
      person acting on its or their behalf has engaged or will engage in any
      directed selling efforts (within the meaning of Regulation S) with respect
      to the Securities and the Company, any Guarantor and their Affiliates and
      any person acting on its or their behalf have complied and will comply
      with the offering restrictions requirement of Regulation S.

            (s) It is not necessary in connection with the offer, sale and
      delivery of the Securities to the Placement Agents in the manner
      contemplated by this Agreement to register the Securities or the Guarantee
      under the Securities Act or to qualify the Indenture under the Trust
      Indenture Act of 1939, as amended.

            (t) The Securities and the Guarantee satisfy the requirements set
      forth in Rule 144A(d)(3) under the Securities Act.

            (u) The Securities and the Guarantee conform in all material
      respects to the description thereof contained in the Final Memorandum
      under the heading "Description of the Notes".

            (v) Subsequent to the respective dates as of which information is
      given in the Final Memorandum, (1) the Company and its subsidiaries have
      not incurred any material liability or obligation, direct or contingent,
      nor entered into any material transaction not in the ordinary course of
      business; (2) the Company has not purchased any of its outstanding capital
      stock, nor declared, paid or otherwise made any dividend or distribution
      of any kind on its capital stock; and (3) there has not been any material
      change in the capital stock, short-term debt or long-term debt of the
      Company and its consolidated subsidiaries, except in each case as
      described in or contemplated by the Final Memorandum.

            (w) The Company and its subsidiaries have good and marketable title
      in fee simple to all real property and good and marketable title to all
      personal property owned by them which is material to the business of the
      Company and its subsidiaries, in each case free and clear of all liens,
      encumbrances and defects except such as are described in the Final
      Memorandum or such as do not materially affect the value of such property
      and do not interfere with the use made and proposed to be made of such
      property by the Company and its subsidiaries: and any real property and
      buildings held under lease by the Company and its subsidiaries are held by
      them under valid, subsisting and enforceable leases with such exceptions
      as are not material and do not interfere with the use made and proposed to
      be made of such property and buildings by the Company and its
      subsidiaries, in each case except as described in or contemplated by the
      Final Memorandum.

                                       4
<PAGE>
            (x) The Company and its subsidiaries own or possess, or can acquire
      on reasonable terms, all material patents, patent rights, licenses,
      inventions, copyrights, know-how (including trade secrets and other
      unattended and/or unpatentable proprietary or confidential information,
      systems or procedures), trademarks, service marks and trade names
      currently employed by them in connection with the business now operated by
      them, and neither the Company nor any of its subsidiaries has received any
      notice of infringement of or conflict with asserted rights of others with
      respect to any of the foregoing which, singly or in the aggregate, if the
      subject of an unfavorable decision, ruling or finding, would result in any
      material adverse change in the condition, financial or otherwise, or in
      the earnings, business or operations of the Company and its subsidiaries,
      taken as a whole.

            (y) No material labor dispute with the employees of the Company or
      any of its subsidiaries exists, except as described in or contemplated by
      the Final Memorandum, or, to the knowledge of the Company, is imminent;
      and the Company is not aware of any existing, threatened or imminent labor
      disturbance by the employees of any of its principal suppliers,
      manufacturers or contractors that could result in any material adverse
      change in the condition, financial or otherwise, or in the earnings,
      business or operations of the Company and its subsidiaries, taken as a
      whole.

            (z) The Company and each of its subsidiaries are insured by insurers
      of recognized financial responsibility against such losses and risks and
      in such amounts as are prudent and customary in the businesses in which
      they are engaged; neither the Company nor any such subsidiary has been
      refused any insurance coverage sought or applied for; and neither the
      Company nor any such subsidiary has any reason to believe that it will not
      be able to renew its existing insurance coverage as and when such coverage
      expires or to obtain similar coverage from similar insurers as may be
      necessary to continue its business at a cost that would not materially and
      adversely affect the condition, financial or otherwise, or the earnings,
      business or operations of the Company and its subsidiaries, taken as a
      whole, except as described in or contemplated by the Final Memorandum.

            (aa) The Company and each of its subsidiaries maintain a system of
      internal accounting controls sufficient to provide reasonable assurance
      that (1) transactions are executed in accordance with management's general
      or specific authorizations; (2) transactions are recorded as necessary to
      permit preparation of financial statements in conformity with generally
      accepted accounting principles and to maintain asset accountability; (3)
      access to assets is permitted only in accordance with management's general
      or specific authorization; and (4) the recorded accountability for assets
      is compared with the existing assets at reasonable intervals and
      appropriate action is taken with respect to any differences.

            2. Agreements to Sell and Purchase. The Company hereby agrees to
sell to the several Placement Agents, and each Placement Agent, upon the basis
of the representations and warranties herein contained, but subject to the
conditions hereinafter stated, agrees, severally and not jointly, to purchase
from the Company the respective principal amount of Securities set forth in
Schedule I hereto opposite its name at a purchase price of 97.875% of the
principal amount thereof (the "PURCHASE PRICE").

            The Company and the Guarantor hereby agree that, without the prior
written consent of Morgan Stanley & Co. Incorporated on behalf of the Placement
Agents, it will not, during the period beginning on the date hereof and
continuing to and including the Closing Date, offer, sell, contract to sell or
otherwise dispose of any debt of the Company or of the Guarantor or warrants to
purchase debt of the Company or of the Guarantor substantially similar to the
Securities (other than the sale of the Securities under this Agreement.)

            3. Terms of Offering. You have advised the Company and the Guarantor
that the Placement Agents will make an offering of the Securities purchased by
the Placement Agents hereunder on the terms to be set forth in the Final
Memorandum, as soon as practicable after this Agreement is entered into as in
your judgment is advisable.

            4. Payment and Delivery. Payment for the Securities shall be made to
the Company in Federal or other funds immediately available in New York City
against delivery of such Securities for the respective accounts of the several
Placement Agents at 10:00 a.m., New York City time, on March 26, 2002, or at
such other time on the

                                       5
<PAGE>
same or such other date, not later than April 2, 2002, as shall be designated in
writing by you. The time and date of such payment are hereinafter referred to as
the "CLOSING DATE."

            Certificates for the Securities shall be in definitive form or
global form, as specified by you, and registered in such names and in such
denominations as you shall request in writing not later than one full business
day prior to the Closing Date. The certificates evidencing the Securities shall
be delivered to you on the Closing Date for the respective accounts of the
several Placement Agents, with any transfer taxes payable in connection with the
transfer of the Securities to the Placement Agents duly paid, against payment of
the Purchase Price therefor.

            5. Conditions to the Placement Agents' Obligations. The several
obligations of the Placement Agents to purchase and pay for the Securities on
the Closing Date are subject to the following conditions:

            (a) Subsequent to the execution and delivery of this Agreement and
      prior to the Closing Date:

                  (i) there shall not have occurred any downgrading, nor shall
            any notice have been given of any intended or potential downgrading
            or of any review for a possible change that does not indicate the
            direction of the possible change, in the rating accorded the Company
            or any of the Company's securities or in the rating outlook for the
            Company by any "nationally recognized statistical rating
            organization," as such term is defined for purposes of Rule
            436(g)(2) under the Securities Act; and

                  (ii) there shall not have occurred any change, or any
            development involving a prospective change, in the condition,
            financial or otherwise, or in the earnings, business or operations
            of the Company and its subsidiaries, taken as a whole, from that set
            forth in the Final Memorandum (exclusive of any amendments or
            supplements thereto subsequent to the date of this Agreement) that,
            in your judgment, is material and adverse and that makes it, in your
            judgment, impracticable to market the Securities on the terms and in
            the manner contemplated in the Final Memorandum.

            (b) The Placement Agents shall have received on the Closing Date a
      certificate, dated the Closing Date and signed by an executive officer of
      the Company and each Guarantor, to the effect set forth in Section 5(a)(i)
      and to the effect that the representations and warranties of the Company
      and such Guarantor contained in this Agreement are true and correct as of
      the Closing Date and the Company and such Guarantor has complied with all
      of the agreements and satisfied all of the conditions on its part to be
      performed or satisfied hereunder on or before the Closing Date.

            The officer signing and delivering such certificate may rely upon
      the best of his or her knowledge as to proceedings threatened.

            (c) The Placement Agents shall have received on the Closing Date an
      opinion of Barrett & McNagny, counsel for the Company and the Guarantor,
      dated the Closing Date, to the effect set forth in Exhibit A. Such opinion
      shall be rendered to the Placement Agents at the request of the Company
      and the Guarantor and shall so state therein.

            (d) The Placement Agents shall have received on the Closing Date an
      opinion of Latham & Watkins, New York counsel for the Company and the
      Guarantor, dated the Closing Date, to the effect set forth in Exhibit B.
      Such opinion shall be rendered to the Placement Agents at the request of
      the Company and the Guarantor and shall so state therein.

            (e) The Placement Agents shall have received on the Closing Date an
      opinion of Shearman & Sterling, counsel for the Placement Agents, dated
      the Closing Date, in form and substance satisfactory to you.

                                       6
<PAGE>
            (f) The Placement Agents shall have received on each of the date
      hereof and the Closing Date letters, dated the date hereof or the Closing
      Date, as the case may be, in form and substance satisfactory to the
      Placement Agents, from Ernst & Young LLP and Deloitte & Touche LLP,
      independent public accountants, containing statements and information of
      the type ordinarily included in accountants' "comfort letters" to
      underwriters with respect to the financial statements and certain
      financial information contained in or incorporated by reference into the
      Final Memorandum; provided that the letters delivered on the Closing Date
      shall use a "cut-off date" not earlier than the date hereof.

            (g) The Credit Agreement shall have been duly authorized, delivered
      and executed by the parties thereto, and the refinancing of certain
      indebtedness of the Company, as described in the Final Memorandum, shall
      be consummated.

            (h) The Securities shall have been designated PORTAL securities in
      accordance with the rules and regulations adopted by the National
      Association of Securities Dealers, Inc. relating to trading in the PORTAL
      Market.

            (i) The Placement Agents shall have received such other documents
      and certificates as are reasonably requested by you or your counsel.

            6. Covenants of the Company and Guarantor. In further consideration
of the agreements of the Placement Agents contained in this Agreement, each of
the Company and the Guarantor, jointly and severally covenants with each
Placement Agent as follows:

            (a) To furnish to you in New York City, without charge, prior to
      10:00 a.m. New York City time on the business day next succeeding the date
      of this Agreement and during the period mentioned in Section 6(c), as many
      copies of the Final Memorandum, any documents incorporated by reference
      therein and any supplements and amendments thereto as you may reasonably
      request.

            (b) Before amending or supplementing either Memorandum, to furnish
      to you a copy of each such proposed amendment or supplement and not to use
      any such proposed amendment or supplement to which you reasonably object.

            (c) If, during such period after the date hereof and prior to the
      date on which all of the Securities shall have been sold by the Placement
      Agents, any event shall occur or condition exist as a result of which it
      is necessary to amend or supplement the Final Memorandum in order to make
      the statements therein, in the light of the circumstances when the Final
      Memorandum is delivered to a purchaser, not misleading, or if, in the
      opinion of counsel for the Placement Agents, it is necessary to amend or
      supplement the Final Memorandum to comply with applicable law, forthwith
      to prepare and furnish, at its own expense, to the Placement Agents,
      either amendments or supplements to the Final Memorandum so that the
      statements in the Final Memorandum as so amended or supplemented will not,
      in the light of the circumstances when the Final Memorandum is delivered
      to a purchaser, be misleading or so that the Final Memorandum, as amended
      or supplemented, will comply with applicable law.

            (d) To endeavor to qualify the Securities and the Guarantee for
      offer and sale under the securities or Blue Sky laws of such jurisdictions
      as you shall reasonably request.

            (e) Whether or not the transactions contemplated in this Agreement
      are consummated or this Agreement is terminated, to pay or cause to be
      paid all expenses incident to the performance of its obligations under
      this Agreement, including: (i) the fees, disbursements and expenses of the
      Company's and the Guarantor's counsel and the Company's and the
      Guarantor's accountants in connection with the issuance and sale of the
      Securities and all other fees or expenses in connection with the
      preparation of each Memorandum and all amendments and supplements thereto,
      including all printing costs associated therewith, and the delivering of
      copies thereof to the Placement Agents, in the quantities herein above
      specified, (ii) all costs and expenses related to the transfer and
      delivery of the Securities to the Placement Agents, including any transfer
      or other taxes payable thereon, (iii) the cost of printing or producing
      any

                                       7
<PAGE>
      Blue Sky or legal investment memorandum in connection with the offer and
      sale of the Securities under state securities laws and all expenses in
      connection with the qualification of the Securities for offer and sale
      under state securities laws as provided in Section 6(d) hereof, including
      filing fees and the reasonable fees and disbursements of counsel for the
      Placement Agents in connection with such qualification and in connection
      with the Blue Sky or legal investment memorandum, (iv) any fees charged by
      rating agencies for the rating of the Securities, (v) all document
      production charges and expenses of counsel to the Placement Agents (but
      not including their fees for professional services) in connection with the
      preparation of this Agreement, (vi) the fees and expenses, if any,
      incurred in connection with the admission of the Securities for trading in
      PORTAL or any appropriate market system, (vii) the costs and charges of
      the Trustee and any transfer agent, registrar or depositary, (viii) the
      cost of the preparation, issuance and delivery of the Securities, (ix) the
      costs and expenses of the Company relating to investor presentations on
      any "road show" undertaken in connection with the marketing of the
      offering of the Securities, including, without limitation, expenses
      associated with the production of road show slides and graphics, fees and
      expenses of any consultants engaged in connection with the road show
      presentations with the prior approval of the Company, travel and lodging
      expenses of the representatives and officers of the Company, the Guarantor
      and any such consultants, and the cost of any aircraft chartered in
      connection with the road show, and (x) all other costs and expenses
      incident to the performance of the obligations of the Company and the
      Guarantor hereunder for which provision is not otherwise made in this
      Section. It is understood, however, that except as provided in this
      Section, Section 8, and the last paragraph of Section 10, the Placement
      Agents will pay all of their costs and expenses, including fees and
      disbursements of their counsel, transfer taxes payable on resale of any of
      the Securities by them and any advertising expenses connected with any
      offers they may make.

            (f) None of the Company, the Guarantor or their Affiliates will
      sell, offer for sale or solicit offers to buy or otherwise negotiate in
      respect of any security (as defined in the Securities Act) which could be
      integrated with the sale of the Securities in a manner which would require
      the registration under the Securities Act of the Securities or the
      Guarantee.

            (g) Not to solicit any offer to buy or offer or sell the Securities
      by means of any form of general solicitation or general advertising (as
      those terms are used in Regulation D under the Securities Act) or in any
      manner involving a public offering within the meaning of Section 4(2) of
      the Securities Act.

            (h) While any of the Securities remain "restricted securities"
      within the meaning of the Securities Act, to make available, upon request,
      to any seller of the Securities the information specified in Rule
      144A(d)(4) under the Securities Act, unless the Company is then subject to
      Section 13 or 15(d) of the Exchange Act.

            (i) To use its best efforts to permit the Securities to be
      designated PORTAL securities in accordance with the rules and regulations
      adopted by the National Association of Securities Dealers, Inc. relating
      to trading in the PORTAL Market.

            (j) None of the Company, the Guarantor or their Affiliates or any
      person acting on their behalf (other than the Placement Agents) will
      engage in any directed selling efforts (as that term is defined in
      Regulation S) with respect to the Securities, and the Company, the
      Guarantor and their Affiliates and each person acting on their behalf
      (other than the Placement Agents) will comply with the offering
      restrictions requirement of Regulation S.

            (k) During the period of two years after the Closing Date, the
      Company and the Guarantor will not, and will not permit any of their
      affiliates (as defined in Rule 144 under the Securities Act) to resell any
      of the Securities which constitute "restricted securities" under Rule 144
      that have been reacquired by any of them.

            7. Offering of Securities; Restrictions on Transfer. (a) Each
Placement Agent, severally and not jointly, represents and warrants that such
Placement Agent is a qualified institutional buyer as defined in Rule 144A under
the Securities Act (a "QIB"). Each Placement Agent, severally and not jointly,
agrees with the Company and

                                       8
<PAGE>
the Guarantor that (i) it will not solicit offers for, or offer or sell, such
Securities by any form of general solicitation or general advertising (as those
terms are used in Regulation D under the Securities Act) or in any manner
involving a public offering within the meaning of Section 4(2) of the Securities
Act and (ii) it will solicit offers for such Securities only from, and will
offer such Securities only to, persons that it reasonably believes to be (A) in
the case of offers inside the United States, QIBs and (B) in the case of offers
outside the United States, to persons other than U.S. persons ("FOREIGN
PURCHASERS," which term shall include dealers or other professional fiduciaries
in the United States acting on a discretionary basis for foreign beneficial
owners (other than an estate or trust)) in reliance upon Regulation S under the
Securities Act that, in each case, in purchasing such Securities are deemed to
have represented and agreed as provided in the Final Memorandum under the
caption "Transfer Restrictions".

            (b) Each Placement Agent, severally and not jointly, represents,
warrants, and agrees with respect to offers and sales outside the United States
that:

                  (ii) such Placement Agent understands that no action has been
            or will be taken in any jurisdiction by the Company or the Guarantor
            that would permit a public offering of the Securities, or possession
            or distribution of either Memorandum or any other offering or
            publicity material relating to the Securities, in any country or
            jurisdiction where action for that purpose is required;

                  (iii) such Placement Agent will comply with all applicable
            laws and regulations in each jurisdiction in which it acquires,
            offers, sells or delivers Securities or has in its possession or
            distributes either Memorandum or any such other material, in all
            cases at its own expense;

                  (iv) neither the Securities nor the Guarantee have been
            registered under the Securities Act and may not be offered or sold
            within the United States or to, or for the account or benefit of,
            U.S. persons except in accordance with Rule 144A or Regulation S
            under the Securities Act or pursuant to another exemption from the
            registration requirements of the Securities Act;

                  (v) such Placement Agent has offered the Securities and the
            Guarantee and will offer and sell the Securities and Guarantee (A)
            as part of their distribution at any time and (B) otherwise until 40
            days after the later of the commencement of the offering and the
            Closing Date, only in accordance with Rule 903 of Regulation S or as
            otherwise permitted in Section 7(a); accordingly, neither such
            Placement Agent, its Affiliates nor any persons acting on its or
            their behalf have engaged or will engage in any directed selling
            efforts (within the meaning of Regulation S) with respect to the
            Securities and the Guarantee, and any such Placement Agent, its
            Affiliates and any such persons have complied and will comply with
            the offering restrictions requirement of Regulation S;

                  (vi) such Placement Agent has (A) not offered or sold and,
            prior to the date six months after the Closing Date, will not offer
            or sell the Securities or the Guarantee to persons in the United
            Kingdom except to persons whose ordinary activities involve them in
            acquiring, holding, managing or disposing of investments (as
            principal or agent) for the purposes of their businesses or
            otherwise in circumstances which have not resulted and will not
            result in an offer to the public in the United Kingdom within the
            meaning of the Public Offers of Securities Regulations 1995; (B)
            complied and will comply with all applicable provisions of the
            Financial Services Act 1986 with respect to anything done by it in
            relation to the Securities or the Guarantee in, from or otherwise
            involving the United Kingdom, and (C) only issued or passed on and
            will only issue or pass on in the United Kingdom any document
            received by it in connection with the issue of the Securities to a
            person who is of a kind described in Article 11(3) of the Financial
            Services Act 1986 (Investment Advertisements) (Exemptions) Order
            1996 or is a person to whom such document may otherwise lawfully be
            issued or passed on; and

                  (vii) such Placement Agent agrees that, at or prior to
            confirmation of sales of the Securities and the Guarantee, it will
            have sent to each distributor, dealer or person receiving a selling
            concession, fee or other remuneration that purchases the Securities
            and the Guarantee from it during the restricted period a
            confirmation or notice to substantially the following effect:

                                       9
<PAGE>
                  "The Securities and Guarantee covered hereby have not been
      registered under the U.S. Securities Act of 1933 (the "Securities Act")
      and may not be offered and sold within the United States or to, or for the
      account or benefit of, U.S. persons (i) as part of their distribution at
      any time or (ii) otherwise until 40 days after the later of the
      commencement of the offering and the closing date, except in either case
      in accordance with Regulation S (or Rule 144A if available) under the
      Securities Act. Terms used above have the meaning given to them by
      Regulation S."

                  Terms used in this Section 7(b) have the meanings given to
      them by Regulation S.

            8. Indemnity and Contribution. (a) Each of the Company and the
Guarantor agrees, jointly and severally, to indemnify and hold harmless each
Placement Agent, each person, if any, who controls any Placement Agent within
the meaning of either Section 15 of the Securities Act or Section 20 of the
Exchange Act and each affiliate of any Placement Agent within the meaning of
Rule 405 under the Securities Act from and against any and all losses, claims,
damages and liabilities (including, without limitation, any legal or other
expenses reasonably incurred in connection with defending or investigating any
such action or claim) caused by any untrue statement or alleged untrue statement
of a material fact contained in either Memorandum (as amended or supplemented if
the Company or the Guarantor shall have furnished any amendments or supplements
thereto), or caused by any omission or alleged omission to state therein a
material fact necessary to make the statements therein in the light of the
circumstances under which they were made not misleading, except insofar as such
losses, claims, damages or liabilities are caused by any such untrue statement
or omission or alleged untrue statement or omission based upon information
relating to any Placement Agent furnished to the Company and the Guarantor in
writing by such Placement Agent through you expressly for use therein.

            (b) Each Placement Agent agrees, severally and not jointly, to
indemnify and hold harmless the Company, the Guarantor, their directors and
officers and each person, if any, who controls the Company or the Guarantor
within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act to the same extent as the foregoing indemnity from the Company
and the Guarantor to such Placement Agent, but only with reference to
information relating to such Placement Agent furnished to the Company and the
Guarantor in writing by such Placement Agent through you expressly for use in
either Memorandum or any amendments or supplements thereto.

            (c) In case any proceeding (including any governmental
investigation) shall be instituted involving any person in respect of which
indemnity may be sought pursuant to Section 8(a) or 8(b), such person (the
"INDEMNIFIED PARTY") shall promptly notify the person against whom such
indemnity may be sought (the "INDEMNIFYING PARTY") in writing and the
indemnifying party, upon request of the indemnified party, shall retain counsel
reasonably satisfactory to the indemnified party to represent the indemnified
party and any others the indemnifying party may designate in such proceeding and
shall pay the fees and disbursements of such counsel related to such proceeding.
In any such proceeding, any indemnified party shall have the right to retain its
own counsel, but the fees and expenses of such counsel shall be at the expense
of such indemnified party unless (i) the indemnifying party and the indemnified
party shall have mutually agreed to the retention of such counsel or (ii) the
named parties to any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood that the indemnifying party
shall not, in respect of the legal expenses of any indemnified party in
connection with any proceeding or related proceedings in the same jurisdiction,
be liable for the fees and expenses of more than one separate firm (in addition
to any local counsel) for all such indemnified parties and that all such fees
and expenses shall be reimbursed as they are incurred. Such firm shall be
designated in writing by Morgan Stanley & Co. Incorporated, in the case of
parties indemnified pursuant to Section 8(a), and by the Company, in the case of
parties indemnified pursuant to Section 8(b). The indemnifying party shall not
be liable for any settlement of any proceeding effected without its written
consent, but if settled with such consent or if there be a final judgment for
the plaintiff, the indemnifying party agrees to indemnify the indemnified party
from and against any loss or liability by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party
for fees and expenses of counsel as contemplated by the second and third
sentences of this paragraph, the indemnifying party agrees that it shall be
liable for any settlement of any proceeding effected without its written consent
if (i) such settlement is entered into more than 30 days after receipt by such
indemnifying party of

                                       10
<PAGE>
the aforesaid request and (ii) such indemnifying party shall not have reimbursed
the indemnified party in accordance with such request prior to the date of such
settlement. No indemnifying party shall, without the prior written consent of
the indemnified party, effect any settlement of any pending or threatened
proceeding in respect of which any indemnified party is or could have been a
party and indemnity could have been sought hereunder by such indemnified party,
unless such settlement includes an unconditional release of such indemnified
party from all liability on claims that are the subject matter of such
proceeding.

            (d) To the extent the indemnification provided for in Section 8(a)
or 8(b) is unavailable to an indemnified party or insufficient in respect of any
losses, claims, damages or liabilities referred to therein, then each
indemnifying party under such paragraph, in lieu of indemnifying such
indemnified party thereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or
liabilities (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company and the Guarantor, on the one hand, and the
Placement Agents, on the other hand, from the offering of the Securities or (ii)
if the allocation provided by clause 8(d)(i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause 8(d)(i) above but also the relative
fault of the Company and the Guarantor, on the one hand, and of the Placement
Agents, on the other hand, in connection with the statements or omissions that
resulted in such losses, claims, damages or liabilities, as well as any other
relevant equitable considerations. The relative benefits received by the Company
and the Guarantor, on the one hand, and the Placement Agents, on the other hand,
in connection with the offering of the Securities and the Guarantee shall be
deemed to be in the same respective proportions as the net proceeds from the
offering of the Securities and the Guarantee (before deducting expenses)
received by the Company and the total discounts and commissions received by the
Placement Agents in respect thereof, bear to the aggregate offering price of the
Securities and the Guarantee. The relative fault of the Company and the
Guarantor, on the one hand, and of the Placement Agents, on the other hand,
shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by the Company and the
Guarantor or by the Placement Agents and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Placement Agents' respective obligations to
contribute pursuant to this Section 8 are several in proportion to the
respective principal amount of Securities and Guarantee they have purchased
hereunder, and not joint.

            (e) The Company, the Guarantor and the Placement Agents agree that
it would not be just or equitable if contribution pursuant to this Section 8
were determined by pro rata allocation (even if the Placement Agents were
treated as one entity for such purpose) or by any other method of allocation
that does not take account of the equitable considerations referred to in
Section 8(d). The amount paid or payable by an indemnified party as a result of
the losses, claims, damages and liabilities referred to in Section 8(d) shall be
deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 8, no Placement Agent shall be required to contribute
any amount in excess of the amount by which the total price at which the
Securities resold by it in the initial placement of such Securities and
Guarantee were offered to investors exceeds the amount of any damages that such
Placement Agent has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The remedies provided for in this
Section 8 are not exclusive and shall not limit any rights or remedies which may
otherwise be available to any indemnified party at law or in equity.

            (f) The indemnity and contribution provisions contained in this
Section 8 and the representations, warranties and other statements of the
Company and the Guarantor contained in this Agreement shall remain operative and
in full force and effect regardless of (i) any termination of this Agreement,
(ii) any investigation made by or on behalf of any Placement Agent, any person
controlling any Placement Agent or any affiliate of any Placement Agent or by or
on behalf of the Company, the Guarantor, their officers or directors or any
person controlling the Company or the Guarantor and (iii) acceptance of and
payment for any of the Securities and the Guarantee.

            9. Termination. The Placement Agents may terminate this Agreement by
notice given by you to the Company, if after the execution and delivery of this
Agreement and prior to the Closing Date (i) trading generally shall have been
suspended or materially limited on, or by, as the case may be, any of the New
York Stock

                                       11
<PAGE>
Exchange, the American Stock Exchange, the Nasdaq National Market, the Chicago
Board of Options Exchange, the Chicago Mercantile Exchange or the Chicago Board
of Trade, (ii) trading of any securities of the Company shall have been
suspended on any exchange or in any over-the-counter market, (iii) a material
disruption in securities settlement, payment or clearance services in the United
shall have occurred, (iv) any moratorium on commercial banking activities shall
have been declared by Federal or New York State authorities or (v) there shall
have occurred any outbreak or escalation of hostilities, or any change in
financial markets or any calamity or crisis that, in your judgment, is material
and adverse and which, singly or together with any other event specified in this
clause (v), makes it, in your judgment, impracticable or inadvisable to proceed
with the offer, sale or delivery of the Securities on the terms and in the
manner contemplated in the Final Memorandum.

            10. Effectiveness; Defaulting Placement Agents. This Agreement shall
become effective upon the execution and delivery hereof by the parties hereto.

            If, on the Closing Date, any one or more of the Placement Agents
shall fail or refuse to purchase Securities that it or they have agreed to
purchase hereunder on such date, and the aggregate principal amount of
Securities which such defaulting Placement Agent or Placement Agents agreed but
failed or refused to purchase is not more than one-tenth of the aggregate
principal amount of Securities to be purchased on such date, the other Placement
Agents shall be obligated severally in the proportions that the principal amount
of Securities set forth opposite their respective names in Schedule I bears to
the aggregate principal amount of Securities set forth opposite the names of all
such non-defaulting Placement Agents, or in such other proportions as you may
specify, to purchase the Securities which such defaulting Placement Agent or
Placement Agents agreed but failed or refused to purchase on such date; provided
that in no event shall the principal amount of Securities that any Placement
Agent has agreed to purchase pursuant to this Agreement be increased pursuant to
this Section 10 by an amount in excess of one-ninth of such principal amount of
Securities without the written consent of such Placement Agent. If, on the
Closing Date any Placement Agent or Placement Agents shall fail or refuse to
purchase Securities which it or they have agreed to purchase hereunder on such
date and the aggregate principal amount of Securities with respect to which such
default occurs is more than one-tenth of the aggregate principal amount of
Securities to be purchased on such date, and arrangements satisfactory to you
and the Company for the purchase of such Securities are not made within 36 hours
after such default, this Agreement shall terminate without liability on the part
of any non-defaulting Placement Agent or of the Company or of the Guarantor. In
any such case either you or the Company shall have the right to postpone the
Closing Date, but in no event for longer than seven days, in order that the
required changes, if any, in the Final Memorandum or in any other documents or
arrangements may be effected. Any action taken under this paragraph shall not
relieve any defaulting Placement Agent from liability in respect of any default
of such Placement Agent under this Agreement.

            If this Agreement shall be terminated by the Placement Agents, or
any of them, because of any failure or refusal on the part of the Company or the
Guarantor to comply with the terms or to fulfill any of the conditions of this
Agreement, or if for any reason the Company shall be unable to perform its
obligations under this Agreement, the Company will reimburse the Placement
Agents or such Placement Agents as have so terminated this Agreement with
respect to themselves, severally, for all out-of-pocket expenses (including the
fees and disbursements of their counsel) reasonably incurred by such Placement
Agents in connection with this Agreement or the offering contemplated hereunder.

            11. Notices. All notices and other communications under this
Agreement shall be in writing and mailed, delivered or sent by facsimile
transmission to: if sent to the Placement Agents, Morgan Stanley & Co.
Incorporated, 1585 Broadway, New York, New York 10036, attention: High Yield New
Issues Group, facsimile number (212) 761-0587 and if sent to the Company or to
the Guarantor, to Steel Dynamics, Inc., 6714 Pointe Inverness Way, Suite 200,
Fort Wayne, Indiana 46804, attention: Tracy Shellabarger, facsimile number (219)
969-3555.

            12. Counterparts. This Agreement may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

            13. Applicable Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

                                       12
<PAGE>
            14. Headings. The headings of the sections of this Agreement have
been inserted for convenience of reference only and shall not be deemed a part
of this Agreement

                                       13
<PAGE>
                             Very truly yours,

                             STEEL DYNAMICS, INC.
                             By: /s/ Tracy L. Shellabarger
                             Name: Tracy L. Shellabarger
                             Title: VP

                             SDI INVESTMENT COMPANY

                             By: /s/ Tracy L. Shellabarger
                             Name: Tracy L. Shellabarger
                             Title: President
<PAGE>
Accepted as of the date hereof

MORGAN STANLEY & CO. INCORPORATED
J.P. MORGAN SECURITIES INC.
BMO NESBITT BURNS CORP.
NATCITY INVESTMENTS, INC.

By: Morgan Stanley & Co. Incorporated

By:  /s/ David P. Sun
    Name:  David P. Sun
    Title:  Executive Director

<PAGE>
                                   SCHEDULE I

                                Placement Agents
<TABLE>
<CAPTION>
                                                               PRINCIPAL AMOUNT OF SECURITIES TO
                       PLACEMENT AGENT                                    BE PURCHASED
<S>                                                            <C>
Morgan Stanley & Co. Incorporated.........................                $148,000,000

J.P. Morgan Securities Inc. ..............................                $40,000,000

BMO Nesbitt Burns Corp....................................                 $6,000,000

NatCity Investments, Inc..................................                 $6,000,000

Total:  ..................................................                $200,000,000
</TABLE>
<PAGE>
                                   SCHEDULE II

                                    Guarantor

SDI Investment Company
<PAGE>
                                  SCHEDULE III

                                  Subsidiaries

<TABLE>
<CAPTION>
                                                            PERCENT OF CAPITAL               PERCENT OF VOTING
                                                        STOCK/EQUITY UNITS OWNED BY     STOCK/VOTING UNITS OWNED BY
NAME                                                       STEEL DYNAMICS, INC.             STEEL DYNAMICS, INC.
----                                                       --------------------             --------------------
<S>                                                     <C>                              <C>
Iron Dynamics, Inc.                                                100%                             100%
New Millennium Building Systems, LLC                               46.5%                            50%
Omni Dynamic Aviation, LLC                                          50%                             50%
Paragon Steel Enterprises, LLC                                      50%                             50%
SDI Investment Company                                             100%                             100%
</TABLE>
<PAGE>
                                    EXHIBIT A

              OPINION OF COUNSEL FOR THE COMPANY AND THE GUARANTOR

                  Attach draft opinion of the counsel for the Company and the
Guarantor to be delivered pursuant to Section 5(c) of the Placement Agreement to
the effect that:

                  A. The Company has been duly incorporated, is validly existing
as a corporation in good standing under the laws of the jurisdiction of its
incorporation, has the corporate power and authority to own its property and to
conduct its business as described in the Final Memorandum and is duly qualified
to transact business and is in good standing in each jurisdiction in which the
conduct of its business or its ownership or leasing of property requires such
qualification, except to the extent that the failure to be so qualified or be in
good standing would not have a material adverse effect on the Company and its
subsidiaries, taken as a whole.

                  B. Each subsidiary of the Company has been duly incorporated
or organized, is validly existing as a corporation or as a limited liability
company in good standing under the laws of the jurisdiction of its incorporation
or organization, has the corporate power and authority to own its property and
to conduct its business as described in the Final Memorandum and is duly
qualified to transact business and is in good standing in each jurisdiction in
which the conduct of its business or its ownership or leasing of property
requires such qualification, except to the extent that the failure to be so
qualified or be in good standing would not have a material adverse effect on the
Company and its subsidiaries, taken as a whole; all of the issued shares of
capital stock, and all membership units or interests, of each subsidiary of the
Company have been duly and validly authorized and issued, are fully paid and
non-assessable, and are owned directly by the Company, free and clear of all
liens, encumbrances, equities or claims.

                  C. The Placement Agreement has been duly authorized, executed
and delivered by the Company and the Guarantor.

                  D. All shares of common stock of the Company and its
subsidiaries outstanding on the Closing Date have been duly authorized and are
validly issued, fully paid and non-assessable.

                  E. The Securities have been duly authorized, executed and
delivered by the Company.

                  F. The Guarantee has been duly authorized, executed and
delivered by the Guarantor.

                  G. The Indenture has been duly authorized, executed and
delivered by the Company and the Guarantor.

                  H. The Registration Rights Agreement has been duly authorized,
executed and delivered by the Company and the Guarantor.

                  I. The Credit Agreement has been duly authorized, executed and
delivered by the Company and each guarantor named therein.

                  J. The execution and delivery by the Company and the Guarantor
of, and the performance by the Company and the Guarantor of their respective
obligations under, the Placement Agreement, the Indenture, the Registration
Rights Agreement, the Securities (in the case of the Company), the Guarantee (in
the case of the Guarantor) and the Credit Agreement will not contravene any
provision of applicable law or the articles of incorporation or by-laws of the
Company or the Guarantor or, to the best of such counsel's knowledge, any
agreement or other instrument binding upon the Company or any of its
subsidiaries that is material to the Company and its subsidiaries, taken as a
whole, or, to the best of such counsel's knowledge, any judgment, order or
decree of any governmental body, agency or court having jurisdiction over the
Company or any subsidiary, and no consent, approval, authorization or order of,
or qualification with, any governmental body or agency is required for the
performance by the Company or the Guarantor of their respective obligations
under the Placement Agreement, the
<PAGE>
Indenture, the Registration Rights Agreement, the Securities (the Company), the
Guarantee (the Guarantor) and the Credit Agreement, except such as may be
required by the securities or Blue Sky laws of the various states in connection
with the offer and sale of the Securities and by Federal and state securities
laws with respect to the Company's and the Guarantor's obligations under the
Registration Rights Agreement.

                  K. After due inquiry, such counsel does not know of any legal
or governmental proceedings pending or threatened to which the Company or any of
its subsidiaries is a party or to which any of the properties of the Company or
any of its subsidiaries is subject other than proceedings fairly summarized in
all material respects in the Final Memorandum and proceedings which such counsel
believes are not likely to have a material adverse effect on the Company and its
subsidiaries, taken as a whole, or on the power or ability of the Company and
the Guarantor to perform their respective obligations under the Placement
Agreement, the Indenture, the Registration Rights Agreement, the Securities (in
the case of the Company), the Guarantee (in the case of the Guarantor) and the
Credit Agreement or to consummate the transactions contemplated by the Final
Memorandum.

                  L. After due inquiry, to the best of our knowledge, the
Company and its subsidiaries (i) are in compliance with any and all applicable
foreign, federal, state and local laws and regulations relating to the
protection of human health and safety, the environment or hazardous or toxic
substances or wastes, pollutants or contaminants ("ENVIRONMENTAL LAWS"), (ii)
have received all permits, licenses or other approvals required of them under
applicable Environmental Laws to conduct their respective businesses and (iii)
are in compliance with all terms and conditions of any such permit, license or
approval, except where such noncompliance with Environmental Laws, failure to
receive required permits, licenses or other approvals or failure to comply with
the terms and conditions of such permits, licenses or approvals would not,
singly or in the aggregate, have a material adverse effect on the Company and
its subsidiaries, taken as a whole.

                  M. Each of the Company and the Guarantor are not, and after
giving effect to the offering and sale of the Securities and the application of
the proceeds thereof as described in the Final Memorandum, will not be an
"investment company" as such term is defined in the Investment Company Act of
1940, as amended.

                  N. The statements related to legal matters, documents or
proceedings included in the Final Memorandum under the captions "Risk Factors --
We face litigation risks in connection with our terminated Thailand advisory
transaction," "Risk Factors -- Environmental regulation imposes substantial
costs and limitations on our operations," "Business -- Environmental Matters,"
"Business -- Legal Proceedings," "Related Party Transactions," "Description of
the Notes," "Description of Certain Indebtedness," "Certain ERISA
Considerations," "Private Placement," and "Transfer Restrictions," in each case
fairly summarize in all material respects such matters, documents or
proceedings.

                  O. The statements in the Final Memorandum under the caption
"United States Federal Income Tax Considerations," insofar as such statements
constitute a summary of the United States federal tax laws referred to therein,
are accurate and fairly summarize in all material respects the United States
federal tax laws referred to therein.

                  P. Such counsel (i) is of the opinion that each document
incorporated by reference in the Final Memorandum (except for financial
statements and schedules and other financial and statistical data included
therein as to which such counsel need not express any opinion), complied as to
form when filed with the Commission in all material respects with the Exchange
Act and the rules and regulations of the Commission thereunder and (ii) has no
reason to believe that (except for financial statements and schedules and other
financial and statistical data as to which such counsel need not express any
belief) the Final Memorandum when issued contained, or as of the date such
opinion is delivered contains, any untrue statement of a material fact or
omitted or omits to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

                  Q. Based upon the representations, warranties and agreements
of the Company in the Placement Agreement and of the Placement Agents in the
Placement Agreement, it is not necessary in connection with the offer, sale and
delivery of the Securities to the Placement Agents under the Placement Agreement
or in connection with the initial resale of such Securities by the Placement
Agents in accordance with the Placement Agreement to register the Securities
under the Securities Act of 1933, as amended, or to qualify the Indenture under
<PAGE>
the Trust Indenture Act of 1939, it being understood that no opinion is
expressed as to any subsequent resale of any Security.

                  R. Each of the Company and its subsidiaries has all necessary
certificates, orders, permits, licenses, authorizations, consents and approvals
of and from, and has made all declarations and filings with, all federal, state
and local governmental authorities, all self-regulatory organizations and all
courts and tribunals, to own, lease, license and use its properties and assets
and to conduct its business in the manner described in the Final Memorandum, and
neither the Company nor any of its subsidiaries has received any notice of
proceedings relating to revocation or modification of any such certificates,
orders, permits, licenses, authorizations, consents or approvals, nor is the
Company or any of its subsidiaries in violation of, or in default under, any
federal, state or local law, regulation, rule, decree, order or judgment
applicable to the Company or any of its subsidiaries the effect of which, singly
or in the aggregate, would have a material adverse effect on the prospects,
condition, financial or otherwise, or in the earnings, business or operations of
the Company and its subsidiaries, taken as a whole, except as described in the
Final Memorandum.

                  With respect to paragraph P above, counsel may state that his
or her opinion and belief are based upon his or her participation in the
preparation of the Final Memorandum (and any amendments or supplements thereto),
and review and discussion of the contents thereof and review of the documents
incorporated by reference therein, but are without independent check or
verification except with respect to paragraphs N and O.
<PAGE>
                                    EXHIBIT B

          OPINION OF NEW YORK COUNSEL FOR THE COMPANY AND THE GUARANTOR

                  Attach draft opinion of the New York counsel for the Company
and the Guarantor to be delivered pursuant to Section 5(d) of the Placement
Agreement to the effect that:

                  A. Assuming the Securities have been duly authorized, executed
and delivered by the parties thereto, the Securities are valid and binding
obligations of the Company, enforceable in accordance with their terms, subject
to applicable bankruptcy, insolvency or similar laws affecting creditors' rights
generally and general principles of equity, and will be entitled to the benefits
of the Indenture and the Registration Rights Agreement.

                  B. Assuming the Guarantee has been duly authorized, executed
and delivered by the parties thereto, the Guarantee is a valid and binding
agreement of the Guarantor enforceable against the Guarantor in accordance with
its terms, subject to applicable bankruptcy, insolvency or similar laws
affecting creditors' rights generally and general principles of equity, and will
be entitled to the benefits of the Indenture and the Registration Rights
Agreement.

                  C. Assuming the Indenture has been duly authorized, executed
and delivered by the parties thereto, the Indenture is a valid and binding
agreement of the Company and the Guarantor, enforceable in accordance with its
terms, subject to applicable bankruptcy, insolvency or similar laws affecting
creditors' rights generally and general principles of equity.

                  D. Assuming the Registration Rights Agreement has been duly
authorized, executed and delivered by the parties thereto, the Registration
Rights Agreement is a valid and binding agreement of the Company and the
Guarantor, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency or similar laws affecting creditors' rights generally and
general principles of equity and except as rights to indemnification and
contribution under the Registration Rights Agreement may be limited under
applicable law.

                  E. Assuming the Credit Agreement has been duly authorized,
executed and delivered by the parties thereto, the Credit Agreement is a valid
and binding agreement of the Company and the Guarantor, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency or
similar laws affecting creditors' rights generally and general principles of
equity.

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