Document:

exv10w3

 

Exhibit 10.3

OPTION TO PURCHASE REAL ESTATE

     THIS OPTION (“Agreement”), is made and entered into as of the date of the last execution
hereof, which date is the 22nd  day of  February , 2006 (the
“Effective Date”), by and between the CITY OF SIKESTON, a Municipal Corporation, of the State of
Missouri, hereinafter referred to as “Optionor” and BOOTHEEL AGRI-ENERGY, LLC., a Delaware Limited
Liability Company, hereinafter referred to as “Optionee”. (Optionor and Optionee are collectively
referred to herein as “Parties”, and individually as “Party”).

     WHEREAS, Optionor is the owner of that certain real property located in Scott County,
Missouri, consisting of 158.42 acres, more particularly described in Exhibit “A” attached hereto
and made a part hereof (the “Property”); and

     WHEREAS, in consideration for the Option Payment (as hereinafter defined), Optionor desires to
grant to Optionee, an Option to Purchase the Property, as more particularly set forth herein.

     NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration,
the Parties hereby agree as follows:

     1. GRANT Of OPTION. Optionor hereby grants to Optionee the exclusive option to
purchase the Property upon the terms and conditions set forth herein (the “Option to Purchase”).

     2. OPTION PAYMENT. In consideration of the option herein granted, Optionee has paid
to Optionor, the sum of Ten Thousand Dollars ($10,000.00) (the “Option Payment”).

 

 

     3. DURATION OF OPTION AND OPTION PAYMENT. The Option to Purchase shall run from the
Effective Date through, and including, eighteen (18) months from the Effective Date (the “Option
Period”). In the event Optionee consummates the Closing, the Option Payment will be applied to the
purchase price as set forth in this Agreement. In the event that Optionee fails to deliver the
Purchase Notice (as hereinafter defined), by the last day of the Option Period, Optionor shall be
entitled to retain the Option Payment and the Option to Purchase shall terminate.

     4. OPTIONEE DUE DILIGENCE. In order for Optionee to determine if it will exercise the
Option to Purchase during the Option Period, Optionee shall have full access to the Property to
perform such tests (environmental, seismic or otherwise), examinations, surveys, reports and
feasibility studies, which Optionee may deem necessary. Provided, however, Optionee shall be
responsible for the cost of such tests, examinations, surveys, reports or studies and shall further
be responsible to reasonably restore the Property to the condition that existed prior to such
testing, examinations, etc. and to indemnify the Optionor for any crop damages sustained by the
tenant during the due diligence testing, surveys, studies, etc. Optionee shall have the right to
have any such crop damages valued by a commercial crop inspection or adjustment service.

     5. METHOD OF EXERCISE. Optionee may exercise the Option to Purchase the Property by notice to
Optionor (the “Purchase Notice”), given no later than the last day of the Option Period.

2

 

     6. TERMS OF PURCHASE. Upon Optionee delivering the Purchase Notice, the Parties agree
to consummate the purchase and sale of the Property according to the following terms:

	 	(a)	 	Purchase Price. The purchase price for the Property
will be Seven Hundred Ninety-Two Thousand One Hundred Dollars ($792,100,00),
(the “Purchase Price”).
	 
	 	(b)	 	Time for Closing. The closing on the purchase of the
Property (the “Closing”) will take place on a mutually agreeable date and time
(the “Closing Date”) no later than sixty (60) days after the date of the
Purchase Notice. The Closing will take place at a mutually agreeable location.
	 
	 	(c)	 	Closing Costs. Optionor shall pay one-half (1/2) of
the costs of obtaining an Owner’s Policy of Title Insurance on the Property,
the cost of preparation of Optionor’s Warranty Deed, the cost of preparation of
any documents prepared on Optionor’s behalf and one-half (1/2) of the Closing
costs of the transaction. Optionee shall pay the cost of obtaining any
Mortgagee’s Policy of Title Insurance, the cost of recording of Optionee’s
Deed, the cost of preparation of any documents required to be prepared by
Optionee hereunder and one-half (1/2) of the Closing costs on the transaction.
	 
	 	(d)	 	Method of Closing and Transfer. Optionor and Optionee
will execute and deliver such documents necessary to effectuate the Closing,
including, but not limited to, the Closing Settlement Statement apportioning
the Closing Costs referred to in Section 6(c), affidavits required by the Title
Company, any resolutions, ordinances or other documents indicating the
authority of the persons executing the Closing documents on behalf of each
Party. Optionor will transfer title to the Property to Optionee by General
Warranty Deed, free and clear of all encumbrances, excepting only (i) real
estate taxes which are not due and payable for the year in which Closing occurs
and (ii) easements and rights of way of record. It is expressly understood and
agreed by the Parties that title herein to be furnished by Optionor to
Optionee, is marketable title as set forth in Title Standard No. 4 of The
Missouri, Bar. It is also agreed that any encumbrance or defect in title which
is within the scope of any of the Title Standards of The Missouri Bar shall not
constitute a valid objection on the

3

 

	 	 	 	part of Optionee, provided Optionor furnishes the affidavits, or other title
papers, if any, described in the applicable Standard. On the Effective Date
of this Option Agreement, on delivery of the Deed, Optionee shall pay the
Purchase Price by cash, cashier’s check or other immediately available
funds, subject to a credit for the Option Payment and adjustments necessary
to reflect the Closing costs set out in the Settlement Statement.
	 
	 	(e)	 	Title Policy. At least twenty (20) days prior to the
Closing Date of this transaction with one-half (1/2) of the cost thereof to be
paid by each party, Optionor will cause to be issued and delivered to Optionee,
a Commitment from a Title Insurance Company acceptable to Optionee for an
Owner’s Policy of Title Insurance covering the Property, showing marketable
title, in fact, as that term is developed and defined by the Title Examination
Standards of the Missouri Bar, with said Commitment to provide for issuance of
a policy in the amount of the Purchase Price herein provided for, upon
recording of the Warranty Deed from Optionor to Optionee. Said policy shall be
subject only to standard title exceptions and matters herein provided for.
	 
	 	(f)	 	Possession Upon Consummation of the Closing. On the
Closing Date, Optionor shall deliver to Optionee the sole and exclusive
possession of the Property, free and clear of the rights of any tenant of
Optionee. Optionee shall not be responsible for any damage to growing crops
occurring after its exercise of the Option granted hereby. Provided, however,
Optionee shall use all reasonable means which will not interfere with its
activities and operations to mitigate any damages to growing crops.

     7. OPTION TO REPURCHASE. Optionee acknowledges that it intends to construct and
operate an ethanol production facility on the Property. Notwithstanding anything contained in the
Agreement to the contrary, any Deed to Optionee shall contain a restriction that if substantial
construction shall not be begun within twenty-four (24) months of the date of the Deed to Optionee,
and completion of such construction diligently pursued thereafter, the Optionor shall have the
option to repurchase the described

4

 

premises at the original Purchase Price paid by Optionee. Optionor may exercise such option
by giving written notice to Optionee within thirty (30) days of the completion of the twenty-four
(24) month period and Closing shall occur within thirty (30) days of the date of such notice. Said
Deed from Optionor to Optionee shall contain a further restriction that the Property shall not be
subdivided or sold as less than one entire contiguous tract without the express written consent of
the City of Sikeston, which said consent shall not be unreasonably withheld.

     8. OPTIONOR’S REPRESENTATIONS, WARRANTIES AND COVENANTS. In consideration for
Optionee making the Option Payment and performing the due diligence contemplated hereunder,
Optionor represents, warrants and covenants that in the exercise of the Option by Optionee, it
will:

	 	(a)	 	Use its best efforts to obtain any and all available grants,
etc. for any infrastructure improvements that are needed;
	 
	 	(b)	 	Extend and/or repair Rose Boulevard and McCulloch Drive to the
property. Provided, however, that Optionor shall have 24 months after
construction on the plant begins to complete McCulloch Drive.
	 
	 	(c)	 	To take all actions necessary to obtain a fifty percent (50%)
abatement of real estate taxes for ten (10) years in the existing enterprise
zone if Optionee shall maintain employment of fifty (50) people for its first
five (5) years of operation and to assist in any other tax abatements or relief
as may be authorized by law except those that diminish municipal revenues.

The representations, warranties and covenants set forth in this Section 8 shall survive the
Closing.

5

 

     9. NOTICES. Any notices, requests or other communications required or permitted to be
given hereunder shall be in writing and shall be deemed given (except as otherwise provided herein)
when received if (i) delivered by hand, (ii) deposited with a widely recognized national overnight
courier service, or (iii) mailed by United States registered or certified mail, return receipt
requested, postage prepaid, and in each case addressed to each Party at its address set forth
below:

	 	 	 	 	 	 	 
	 

	 	To Optionor:
	 	DOUG FRIEND	 	 
	 

	 	 	 	City Manager	 	 
	 

	 	 	 	CITY OF SIKESTON	 	 
	 

	 	 	 	105 East Center	 	 
	 

	 	 	 	Sikeston, Missouri 63801	 	 
	 
	 	 	 	 	 	 
	 

	 	with a copy to:
	 	CHARLES LEIBLE	 	 
	 

	 	 	 	Attorney at Law	 	 
	 

	 	 	 	P.O. Box 905	 	 
	 

	 	 	 	Sikeston, MO 63801	 	 
	 
	 	 	 	 	 	 
	 

	 	To Optionee:
	 	BOOTHEEL AGRI-ENERGY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

     Rejection or other refusal to accept or inability to deliver because of changed address of
which no notice was given shall be deemed to be receipt of the notice, request or other
communication. By giving at least five (5) days prior notice thereof, any Party may, from time to
time, at any time, change its mailing address hereunder.

     10. ASSIGNMENT. Optionee will not assign this Option to Purchase or its rights
hereunder without the express written consent of Optionor. Such approval shall not be unreasonably
withheld or delayed, provided, any assignment furthers the objective of construction or operation
of

6

 

an ethanol or other bio fuels plant or facilities for the capture, processing, transportation
or use of byproducts of bio fuels.

     11. CONSTRUCTION. This Agreement shall be construed in accordance with the laws of
the State of Missouri.

     12. RECORDING. This Agreement shall not be recorded. Upon the request of Optionee,
Optionor and Optionee will execute a Memorandum of this Agreement which may be recorded in the
public land records for Scott County, Missouri.

     13. ATTORNEYS’ FEES. In the event any Party brings suit to construe or enforce the
terms hereof, or raises this Agreement as a defense in a suit brought by another party, the
prevailing party is entitled to recover its attorney’s fees and expenses.

     14. MISCELLANEOUS. Notwithstanding anything to the contrary, the City intends to
impose certain protective covenants on the property. The protective covenants will not be more
restrictive than those of the Sikeston Business Technology & Education Park recorded in Book 511,
Pages 879-907. Optionor acknowledges that Optionee proposes to construct a coal-fired bio fuels
plant with grain and coal storage on the site. None of the restrictions or protective covenants
shall materially interfere with Optionee’s intended use of the premises, including the erection and
operation of a coal-fired bio fuels plant, with necessary fermentors, boilers, smokestacks and
rail, open coal storage and grain handling facilities and related facilities for the capture,
processing, transportation or use of byproducts of bio fuels.

7

 

Optionee’s obligation to close its purchase of the Property following exercise of the Option
shall be conditioned upon its approval of said restrictions, which will not be unreasonably
withheld or delayed.

     IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the Effective
Date.

	 	 	 	 	 	 	 
	 	 	 	 	CITY OF SIKESTON
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Mayor
	 

	 	 	 	 	 	“0ptionor”
	 
	 	 	 	 	 	 
	ATTEST:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

City Clerk

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	BOOTHEEL AGRI-ENERGY, LLC
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(Name)	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	(Title)	 	 
	 

	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	“Optionee”

8

 

EXHIBIT “A”

TRACT 16

A tract or parcel of land being a part U.S.P.S. 626 and 633, Township 26 North, Range 13 East,
Scott County Missouri and being further described by metes and bounds
as follows:

Commencing at the Northwest Corner of Lot 1 of Sikeston Business & Technology Park, 1st Addition to
the City of Sikeston, Scott County, Missouri as recorded in the office of the Recorder of Deeds of
Scott County, Missouri in Plat Book 15, Page 36; thence S 71°56’ W along the North line of said
addition a distance of 190.00 feet to the Northwest Corner of said addition; thence N 18°04’00” W
along an extension of the West line of said addition a distance of 463.00 feet for the point of
beginning; thence continuing N 18°04’00” W a distance of 37.38 feet; thence S 71°56’00” W parallel
to the North line of said Lot 1 a distance of 990.00 feet; thence N 18°04’00” W parallel to the
West line of said addition a distance of 93.73 feet; thence N 3°54’18” E parallel with and 100.00
feet perpendicular to the West line of said U.S.P.S 626 a distance of 2276.11 feet; thence N
3°48’37” E parallel to and 100.00 feet perpendicular to the West line of said U.S.P.S. 633 a
distance of 2025.82 feet to the South right-of-way line of County Road 468, said point being 40
foot south of the centerline thereof; thence S 86°31’14” E along said right-of-way line a distance
of 960.68 feet to the West right-of-way line of the Burlington Northern-Sante Fe Railroad; thence S
18°04’00” E along said right-of-way line a distance of 3769.03 feet to a point N 18°04’00” W a
distance of 463.00 feet from the Northeast corner of said Sikeston Business & Technology Park, 1st
Addition; thence S 71°56’00” W parallel with the North line of said Sikeston Business & Technology
Park, 1st Addition a distance of 1510.00 feet to the point of beginning and containing 158.42
acres, more or less.
Subject to any and all easements, if any, affecting the same.

CERTIFICATION:

This survey and plat were executed in accordance with the requirements of the Standards for
Property Boundary Surveys adopted by the Missouri Board for Architects, Professional Engineers and
Land Surveyors, and the Missouri Department of Natural Resources.

John Chittenden, PLS 2108

Waters Engineering, Inc.<PAGE>

                                                                     EXHIBIT 4.1

            FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     This FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this
"Amendment") is made and entered into as of October 13, 2006 (the "Effective
Date"), by and among METAL MANAGEMENT, INC., a Delaware corporation, CIM
TRUCKING, INC., an Illinois corporation, METAL MANAGEMENT AEROSPACE, INC., a
Delaware corporation, METAL MANAGEMENT ALABAMA, INC., a Delaware corporation,
METAL MANAGEMENT ARIZONA, L.L.C., an Arizona limited liability company, METAL
MANAGEMENT CONNECTICUT, INC., a Delaware corporation, METAL MANAGEMENT INDIANA,
INC., an Illinois corporation, METAL MANAGEMENT MEMPHIS, L.L.C., a Tennessee
limited liability company, METAL MANAGEMENT MIDWEST, INC., an Illinois
corporation, METAL MANAGEMENT MISSISSIPPI, INC., a Delaware corporation, METAL
MANAGEMENT NEW HAVEN, INC., a Delaware corporation, METAL MANAGEMENT NORTHEAST,
INC., a New Jersey corporation, METAL MANAGEMENT OHIO, INC., an Ohio
corporation, METAL MANAGEMENT PITTSBURGH, INC., a Delaware corporation, METAL
MANAGEMENT PROLER SOUTHWEST, INC., a Delaware corporation, METAL MANAGEMENT S&A
HOLDINGS, INC., a Delaware corporation, METAL MANAGEMENT WEST, INC., a Colorado
corporation, METAL MANAGEMENT WEST COAST HOLDINGS, INC., a Delaware corporation,
NAPORANO IRON & METAL, INC., a Delaware corporation, PROLER SOUTHWEST GP, INC.,
a Delaware corporation, PROLER SOUTHWEST LP, a Texas limited partnership, and
RESERVE IRON & METAL LIMITED PARTNERSHIP, a Delaware limited partnership
(collectively, the "Borrowers"); METAL MANAGEMENT, INC., a Delaware corporation,
acting in its capacity as borrowing agent and funds administrator for the
Borrowers (in such capacity, the "Funds Administrator"); the financial
institutions identified on the signature pages hereto as lenders (the
"Lenders"); and LASALLE BANK NATIONAL ASSOCIATION, a national banking
association acting in its capacity as agent for the Lenders (in such capacity,
"Agent").

     WHEREAS, the Borrowers, the Funds Administrator, the Lenders and the Agent
are party to a certain Amended and Restated Credit Agreement dated as of May 9,
2006 (such agreement, as it may be from time to time amended, restated,
modified, or supplemented, the "Credit Agreement");

     WHEREAS, prior to the date hereof, Metal Management, Inc. has caused (i)
Metal Management Jackson, L.L.C., a Delaware limited liability company ("MTLM
Jackson"), to be merged with and into Metal Management Mississippi, Inc., a
Delaware corporation, with MTLM Jackson ceasing to exist as a separate entity
and Metal Management Mississippi, Inc. continuing as the surviving entity to the
merger, and (ii) MTLM Arizona, Inc., an Arizona corporation ("MTLM Arizona"), be
dissolved with Metal Management West Coast Holdings, Inc., a Delaware
corporation and the sole shareholder of MTLM Arizona, succeeding to the assets
of MTLM Arizona, in each case in compliance with the terms of the Credit
Agreement, and the parties accordingly desire to remove MTLM Jackson and MTLM
Arizona as parties to the Credit Agreement;

     WHEREAS, the Borrowers, the Funds Administrator, the Lenders and the Agent
desire to further amend certain of the terms and conditions of the Credit
Agreement pursuant to the terms and conditions of this Amendment; and

     WHEREAS, the defined terms used, but not defined, herein shall have the
meanings ascribed to such terms in the Credit Agreement.

     NOW, THEREFORE, for valuable consideration received to their mutual
satisfaction, the parties hereby agree as follows:

     1. Amendment of Credit Agreement. Subject to the terms of this Amendment,
the Credit Agreement is hereby amended as follows:

     (a) Removal of MTLM Jackson and MTLM Arizona. MTLM Jackson and MTLM Arizona
are hereby removed from the definition of "Borrowers" set forth in Section 1.1
of the Credit Agreement, such that the

<PAGE>

definition of "Borrowers" reads as follows:

     " 'Borrowers' means, collectively, (1) MTLM, (2) CIM, (3) MTLM Aerospace,
     (4) MTLM Alabama, (5) Arizona LLC, (6) MTLM Connecticut, (7) MTLM Indiana,
     (8) MTLM Memphis, (9) MTLM Midwest, (10) MTLM Mississippi, (11) MTLM New
     Haven, (12) MTLM Northeast, (13) MTLM Ohio, (14) MTLM Pittsburgh, (15) MTLM
     Proler Southwest, (16) S&A Holdings, (17) MTLM West, (18) MTLM West Coast
     Holdings, (19) Naporano, (20) Proler Southwest GP, (21) Proler Southwest LP
     and (22) Reserve."

     (b) Stock Repurchases. Clause (iv) of Section 8.7 of the Credit Agreement
is hereby deleted and the following inserted in its stead:

     "(iv) MTLM may redeem, repurchase or otherwise acquire or retire any of its
     capital stock so long as (A) before and after giving effect to all payments
     in connection therewith, the Borrowers shall be in compliance with the
     financial covenants contained in Sections 8.1 and 8.2 hereof, as
     demonstrated by a certificate of the chief executive officer, chief
     financial officer or treasurer of MTLM delivered to the Agent and the
     Lenders prior to such payment; (B) no Default or Event of Default shall
     have occurred and be continuing or would result from such payments; and (C)
     the aggregate amount of all such payments during the term of this Credit
     Agreement does not exceed $100,000,000."

     2. General Terms of Amendment. Except as specifically amended herein,
directly or by reference, all of the terms and conditions set forth in the
Credit Agreement and the other Credit Documents are confirmed and ratified, and
shall remain as originally written. This Amendment shall be construed in
accordance with the laws of the State of Illinois, without regard to principles
of conflict of laws. Nothing herein shall affect or impair any rights and powers
which the Borrowers, the Funds Administrator, any Lender or the Agent may have
under the Credit Agreement or any of the other Credit Documents.

     3. Release. In consideration of this Amendment, the Borrowers and the Funds
Administrator hereby release and discharge the Lenders and Agent and each of
their respective shareholders, directors, officers, employees, attorneys,
affiliates and subsidiaries from any and all claims, demands, liability and
causes of action whatsoever, now known or unknown, arising prior to the date
hereof out of or in any way related to the extension or administration of the
Obligations, the Credit Agreement, the other Credit Documents or any security
interest related thereto.

     4. Liens not Impaired. The parties hereto further agree that this Amendment
shall in no manner affect or impair the liens and security interests evidenced
by the Credit Agreement and/or any other Credit Documents or instruments
evidencing, securing or related to the Obligations. The Borrowers hereby
acknowledge that all liens and security interests securing the Obligations are
valid and subsisting.

     5. No Counterclaims or Defenses. The Borrowers and the Funds Administrator
hereby declare that neither the Borrowers nor the Funds Administrator have any
set offs, counterclaims, defenses or other causes of action against the Lenders
or the Agent arising out of the Credit Agreement, the other Credit Documents or
the transactions contemplated thereby, and to the extent any such set offs,
counterclaims, defenses or other causes of action might exist, such items are
hereby waived by the Borrowers.

     6. Representations and Undertakings of Borrowers and Funds Administrator.
Each of the Borrowers and the Funds Administrator hereby represents and warrants
to the Lenders and the Agent that: (a) each Credit Party a party hereto has the
legal power and authority to execute and deliver this Amendment; (b) the
officers or representatives executing this Amendment have been duly authorized
to execute and deliver the same and bind such Credit Parties with respect to the
provisions hereof; (c) the execution and delivery hereof by such Credit Parties
and the performance and observance by such Credit Parties of the provisions
hereof do not violate or conflict with the organizational documents or
agreements of such Credit Parties or any law applicable to such Credit Parties
or result in a breach of any provisions of or constitute a default under any
other agreement, document, certificate or instrument binding upon or enforceable
against such Credit Parties; (d) this Amendment constitutes a valid and

<PAGE>

binding obligation upon such Credit Parties in every respect, and (e) the
recitals to this Amendment are true and correct. The Borrowers and the Funds
Administrator hereby further represent and warrant to the Lenders and the Agent
that no Default or Event of Default has occurred under the Credit Agreement or
the other Credit Documents and that each of the representations and warranties
of the Borrowers and the Funds Administrator set forth in the Credit Agreement
and the other Credit Documents are true and correct as of the Effective Date. On
the Effective Date, the Borrowers and the Funds Administrator shall deliver to
the Agent (for the benefit of the Agent and the Lenders) certified copies of
resolutions of such Credit Parties authorizing the execution, delivery and
performance of this Amendment by such Credit Parties, certification that there
have been no amendments to the respective bylaws, certificates of incorporation
or equivalent constituent documents of the Credit Parties since the date of the
original Credit Agreement (or if there have been such amendments, certified
copies of such amended documents) and an incumbency certificate evidencing the
authority of the officers of such Credit Parties executing this Amendment.

     7. Costs and Expenses. The Borrowers and the Funds Administrator jointly
and severally agree to pay, on demand, all costs and expenses of the Agent
(including the reasonable fees and expenses of outside counsel for the Agent) in
connection with the preparation, negotiation, execution, delivery, and
administration of this Amendment and any other Credit Documents and all other
instruments or documents provided for herein or delivered or to be delivered
hereunder or in connection herewith or related thereto. In addition, the
Borrowers and the Funds Administrator jointly and severally agree to pay, and
save the Lenders and the Agent harmless from all liability for, any stamp or
other taxes which may be payable in connection with the execution or delivery of
this Amendment, the borrowings contemplated in this Amendment, and the execution
and delivery of any instruments or documents provided for herein or delivered or
to be delivered hereunder or in connection herewith or in connection with the
Credit Agreement or the other Credit Documents. All obligations in this Section
shall survive any termination of the Credit Agreement, as amended hereby, and
the other Credit Documents. The Borrowers and the Funds Administrator hereby
authorize the Agent to charge the Borrowers' account(s) with the Agent in
respect of any and all costs and expenses described hereunder.

     8. Section Titles. The Section titles and captions contained herein are and
shall be without substantive meaning and are not a part of the agreement between
the parties hereto.

     9. Counterparts. This Amendment may be executed in counterparts and all
such counterparts shall constitute one agreement binding on all the parties,
notwithstanding that the parties are not signatories to the same counterpart.

                            [Signature Pages Follow]
<PAGE>

IN WITNESS WHEREOF, the respective parties hereto have caused this First
Amendment to Amended and Restated Credit Agreement to be executed and delivered
by their duly authorized officers as of the date first set forth above.

METAL MANAGEMENT, INC.,
as Funds Administrator and as
Borrower

By: /s/ Robert C. Larry
    ---------------------------------
Name: Robert C. Larry
Title: Executive Vice President and
       Chief Financial Officer

ADDITIONAL BORROWERS:
CIM TRUCKING, INC.
METAL MANAGEMENT AEROSPACE, INC.
METAL MANAGEMENT ALABAMA, INC.
METAL MANAGEMENT ARIZONA, L.L.C.
METAL MANAGEMENT CONNECTICUT, INC.
METAL MANAGEMENT INDIANA, INC.
METAL MANAGEMENT MEMPHIS, L.L.C.
METAL MANAGEMENT MIDWEST, INC.
METAL MANAGEMENT MISSISSIPPI, INC.
METAL MANAGEMENT NEW HAVEN, INC.
METAL MANAGEMENT NORTHEAST, INC.
METAL MANAGEMENT OHIO, INC.
METAL MANAGEMENT PITTSBURGH, INC.
METAL MANAGEMENT PROLER SOUTHWEST, INC.
METAL MANAGEMENT S&A HOLDINGS, INC.
METAL MANAGEMENT WEST, INC.
METAL MANAGEMENT WEST COAST HOLDINGS, INC.
NAPORANO IRON & METAL, INC.
PROLER SOUTHWEST GP, INC.

By: /s/ Robert C. Larry
    ---------------------------------
Name: Robert C. Larry
Title: Vice President

RESERVE IRON & METAL LIMITED
PARTNERSHIP

By: METAL MANAGEMENT OHIO, INC., its
    general partner

By: /s/ Robert C. Larry
    ---------------------------------
Name: Robert C. Larry
Title: Vice President

                           [Signature Page Continues]

<PAGE>

                 [Signature Page to First Amendment, Continued]

PROLER SOUTHWEST LP

By: PROLER SOUTHWEST GP, INC., its general
    partner

By: /s/ Robert C. Larry
    ---------------------------------
Name: Robert C. Larry
Title: Vice President

<PAGE>

                           [Signature Page Continues]
                 [Signature Page to First Amendment, Continued]

AGENT:

LASALLE BANK NATIONAL ASSOCIATION,
as Agent

By: /s/ Michael J. Vrchota
    ---------------------------------
Name: Michael J. Vrchota
Title: Senior Vice President

LENDERS:

LASALLE BANK NATIONAL ASSOCIATION

By: /s/ Michael J. Vrchota
    ---------------------------------
Name: Michael J. Vrchota
Title: Senior Vice President

                           [Signature Page Continues]

<PAGE>

                 [Signature Page to First Amendment, Continued]

CHARTER ONE BANK, N.A.

By: /s/ Mark A. LoSchiavo
    ---------------------------------
Name: Mark A. LoSchiavo
Title: Vice President

                           [Signature Page Continues]
<PAGE>

                 [Signature Page to First Amendment, Continued]

SOVEREIGN BANK

By: /s/ Christine Gerula
    ---------------------------------
Name: Christine Gerula
Title: Senior Vice President

                           [Signature Page Continues]

<PAGE>

                 [Signature Page to First Amendment, Continued]

PNC BANK NATIONAL ASSOCIATION

By: /s/ John M. Cunningham
    ---------------------------------
Name: John M. Cunningham
Title: Vice President

                           [Signature Page Continues]

<PAGE>

                 [Signature Page to First Amendment, Continued]

NATIONAL CITY BANK, SUCCESSOR BY
MERGER TO NATIONAL CITY BANK OF THE
MIDWEST

By: /s/ James M. Kershner
    ---------------------------------
Name: James M. Kershner
Title: Vice President

                           [Signature Page Continues]

<PAGE>

                 [Signature Page to First Amendment, Continued]

U.S. BANK, NATIONAL ASSOCIATION

By: /s/ Matthew J. Schultz
    ---------------------------------
Name: Matthew J. Schultz
Title: Vice President

                           [Signature Page Continues]

<PAGE>

                 [Signature Page to First Amendment, Continued]

KEYBANK NATIONAL ASSOCIATION

By: /s/ Suzannah Harris
    ---------------------------------
Name: Suzannah Harris
Title: Vice President

                           [Signature Page Continues]

<PAGE>

                 [Signature Page to First Amendment, Continued]

FIFTH THIRD BANK (CHICAGO)

By: /s/ Neil G. Mesch
    ---------------------------------
Name: Neil G. Mesch
Title: Vice President

                           [Signature Page Continues]

<PAGE>

                 [Signature Page to First Amendment, Continued]

ASSOCIATED BANK, N.A.

By: /s/ Daniel Holzhauer
    ---------------------------------
Name: Daniel Holzhauer
Title: Vice President

                           [Signature Page Continues]

<PAGE>

                 [Signature Page to First Amendment, Continued]

REGIONS BANK

By: /s/ Sam H. Prudhomme
    ---------------------------------
Name: Sam H. Prudhomme
Title: Vice President, Corporate
       Banking Division

                           [Signature Page Continues]

<PAGE>

                 [Signature Page to First Amendment, Continued]

COMERICA BANK

By: /s/ Tamara J. Miller
    ---------------------------------
Name: Tamara J. Miller
Title: Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]