Document:

Exhibit 10.4

 

EXECUTION COPY

 

LIEN SUBORDINATION AND INTERCREDITOR AGREEMENT dated as
of November 15, 2007 (as
amended, supplemented or otherwise modified from time to time, this “Agreement”),
among SYMMETRY HOLDINGS INC., a Delaware corporation (“Symmetry”); NOVAMERICAN STEEL FINCO INC., a Delaware
Corporation (the “US Borrower”); NOVAMERICAN STEEL INC., a Canadian
corporation (the “Canadian Borrower” and, together with the US Borrower,
the “Borrowers”); the other SUBSIDIARIES of SYMMETRY whose signatures appear
below or who in the future become parties hereto as provided in Section 8.18;
JPMORGAN CHASE BANK, N.A., in its capacity as Administrative Agent for, and
acting on behalf of, the Revolving Credit Secured Parties referred to herein
(together with its successors and assigns in such capacity, the “Revolving Credit Agent”); and
THE BANK OF NEW YORK, in its capacity as Collateral Agent for, and acting on
behalf of, the Senior Notes Secured Parties referred to herein (together with
its successors and assigns in such capacity, the “Senior Notes Agent”). Capitalized
terms used and not otherwise defined in this Agreement are used with the
meanings specified in Article I.

 

On the date
hereof, Symmetry, the Borrowers, the initial Revolving Credit Lenders and the Revolving Credit Agent are
entering into the Revolving Credit Agreement, under which the Revolving Credit
Lenders are agreeing, upon the terms and subject to the conditions set forth
therein, to extend credit to the Borrowers. The Revolving Credit Obligations
will be guaranteed by the Revolving Credit Loan Parties and secured by Liens on
the Revolving Credit Collateral as provided in the Revolving Credit Collateral Documents.

 

On the date
hereof, Symmetry, the other Senior Notes Guarantors, the US Borrower and the Senior Notes Agent are entering
into the Senior Notes Indenture, under which the US Borrower will issue and
sell the Senior Notes. The Senior Notes Obligations will be guaranteed by the
Senior Notes Guarantors as provided in the Senior Notes Indenture and secured
by Liens on the Senior Notes Collateral as provided in the Senior Notes Collateral Documents.

 

The Revolving
Credit Documents and the Senior Notes Documents provide, among other things,
that the parties hereto will enter into this Agreement to set forth their
relative rights and remedies with respect to the Common Collateral.

 

Accordingly,
in order to induce the Revolving Credit Lenders and the other Revolving Credit
Secured Parties to enter into the Revolving Credit Agreement and the other
Revolving Credit Documents and to extend the credit pursuant thereto, and in
order to induce the Senior Notes Agent to enter into the Senior Notes Indenture
and the Senior Notes Secured Parties to purchase the Senior Notes, and for
other good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, the parties hereto, intending to be legally bound, hereby
agree as follows:

 

 

ARTICLE I

 

Definitions

 

Section 1.01. New York UCC. All capitalized terms used
without definition herein that are defined in the UCC as in effect in the State
of New York shall have the meanings specified therein.

 

Section 1.02. Other Defined Terms. As used in the
Agreement, the following terms shall have the following meanings:

 

“ABL Collateral”  means
any and all of the following that constitutes Common Collateral:  (a) all
Accounts Receivable and related Records; (b) all Chattel Paper; (c) all
Deposit Accounts (other than the Notes Collateral Account), (d) all cash,
checks and other negotiable instruments, funds and other evidences of payment
(but excluding any cash or other assets held in the Notes Collateral Account in
accordance with the Senior Notes Indenture, as in effect on the date hereof); (e) all
Inventory; (f) to the extent evidencing, governing, securing or otherwise
related to the items referred to in the preceding clauses (a), (b), (c), (d) and
(e), all Documents, General Intangibles, Instruments, Investment Property and
Letter of Credit Rights; (g) all books and records related to the foregoing;
(h) all collateral security and guarantees given by any Person with
respect to any of the foregoing; and (i) all Proceeds, including insurance
Proceeds, of any and all of the foregoing.

 

“Accounts Receivable” means all Accounts and other
rights to payment, in each case for the sale of Inventory or the performance of
services, existing on the date of this Agreement or hereafter arising, whether
or not earned by performance.

 

“Agents” means the Revolving Credit Agent and the
Senior Notes Agent.

 

“Amend” means, in respect of any Indebtedness,
obligation or agreement, to amend, restate, modify, waive, supplement,
restructure, extend, increase or renew such Indebtedness, in whole or in part. “Amended” and “Amendment” shall have correlative meanings.

 

“Bankruptcy Code” means Title 11 of the
United States Code entitled “Bankruptcy,” as now or hereafter in effect, or any
successor statute.

 

“Bankruptcy Law” means the Bankruptcy Code and any
similar federal, state or foreign law for the relief of debtors.

 

“Borrowers”
has the meaning set forth in the preamble to this Agreement.

 

“Canadian
ABL Collateral” means any and all of the following assets of the Canadian
Borrower:  (a) all Accounts Receivable and related Records; (b) all
Chattel Paper; (c) all Deposit Accounts (other than the Intercompany Note
Collateral Account), (d) all cash, checks and other negotiable
instruments, funds and other evidences of payment (but excluding any cash or
other assets held in the Intercompany Note Collateral

 

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Account in accordance with the Senior Notes Indenture, as in effect on
the date hereof); (e) all Inventory; (f) to the extent evidencing,
governing, securing or otherwise related to the items referred to in the
preceding clauses (a), (b), (c), (d) and (e), all Documents, General
Intangibles, Instruments, Investment Property and Letter of Credit Rights; (g) all
books and records related to the foregoing; (h) all collateral security
and guarantees given by any Person with respect to any of the foregoing; and (i) all
Proceeds, including insurance Proceeds, of any and all of the foregoing.

 

“Canadian
Borrower” has the meaning set forth in the preamble to this Agreement.

 

“Canadian
Intercompany Notes” means (a) the senior secured demand promissory
notes evidencing loans by the US Borrower to the Canadian Borrower in an
aggregate principal amount of US$125,000,000, made on the date hereof from the
gross proceeds from the sale of the Senior Notes, and (b) each other
promissory note evidencing any other loan or advance from time to time made by
the US Borrower to the Canadian Borrower, in each case where the obligations
evidenced thereby are secured by a Lien on assets of the Canadian Borrower.

 

“Canadian
Intercompany Notes Documents” means the Canadian Intercompany Notes and all
other instruments, agreements and other documents evidencing or governing the
loan evidenced by any Canadian Intercompany Note, providing for any security
interest or other right in respect thereof, affecting the terms of the
foregoing or entered into in connection therewith and all schedules, exhibits
and annexes to each of the foregoing.

 

“Canadian
Non-ABL Collateral” means any assets of the Canadian Borrower on which any
Lien has been granted by the Canadian Borrower to secure any obligations under
any Canadian Intercompany Note, other than any assets constituting the Canadian
ABL Collateral.

 

“Canadian
Revolving Credit Obligations” means Revolving Credit Obligations of the
Canadian Borrower.

 

“Cash Collateral” has the meaning set forth in Section 6.01.

 

“Collateral” means all Revolving Credit Collateral
and all Senior Notes Collateral.

 

“Collateral
Documents” means the Revolving Credit Collateral Documents and the Senior
Notes Collateral Documents.

 

“Common Collateral”
means all Collateral that constitutes both Revolving Credit Collateral and
Senior Notes Collateral. For the avoidance of doubt, “Common Collateral” shall
not include any Canadian ABL Collateral, any Canadian Non-ABL Collateral or any
other assets of any Person (other than Symmetry and the US Borrower) that is
not both a Revolving Credit Loan Party and a Subsidiary Notes Guarantor.

 

3

 

“Control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies, or the dismissal or appointment of
the management, of a Person, whether through the ability to exercise voting
power, by contract or otherwise. “Controlled” shall have a correlative meaning.

 

“DIP Financing” has the meaning set forth in Section 6.01.

 

“Discharge” means, with respect to the Revolving
Credit Obligations, the Canadian Revolving Credit Obligations or the Senior
Notes Obligations (each a “Class” of Obligations):

 

(a)  payment in full in cash of the principal of and interest
(including interest accruing on or after the commencement of any Insolvency or
Liquidation Proceeding, whether or not such interest would be allowed in such
Insolvency or Liquidation Proceeding) on all such Obligations;

 

(b)  payment in full in cash of all other Obligations of such Class that
are due and payable or otherwise accrued and owing at or prior to the time such
principal and interest are paid;

 

(c)  termination or expiration of all commitments, if any, to
extend credit that would give rise to Obligations of such Class; and

 

(d)  termination or cash collateralization of all letters of
credit and bankers’ acceptances the reimbursement or payment obligations in
respect of which constitute Obligations of such Class (any such cash
collateralization to be in an amount and manner reasonably satisfactory to the
Agent for such Class of Obligations, but in no event shall such amount be
greater than 105% of the aggregate undrawn face amount in the case of letters of
credit or 100% of the principal amount in the case of bankers’ acceptances).

 

“Discharge of Senior Obligations” means, subject
to the provisions of Section 5.07, (a) with respect to the Senior
Notes Liens on the ABL Collateral and the Senior Notes Obligations insofar as
they are secured by such Liens, the occurrence of a Discharge of the Revolving
Credit Obligations and (b) with respect to the Revolving Credit Liens on
the Non-ABL Collateral and the Revolving Credit Obligations insofar as they are
secured by such Liens, the occurrence of a Discharge of the Senior Notes
Obligations.

 

“Disposition” has the meaning set forth in Section 5.01(b).
“Dispose”, when used as a verb, shall have a correlative meaning.

 

“Equity
Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or
other equity ownership interests in a Person, and any warrants, options or
other rights entitling the holder thereof to purchase or acquire any such
equity interest.

 

4

 

“GAAP”
means generally accepted accounting principles and practices in the United
States of America consistently applied.

 

“Governmental Authority” means the government of
the United States of America, Canada, any other nation or any political
subdivision thereof, whether state, provincial, territorial or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

 

“Grantors” means, at any time, Symmetry, the US
Borrower and each other Subsidiary that, at such time, (a) pursuant to any
Revolving Credit Collateral Document has granted a Lien on any Common
Collateral owned by it to secure any Revolving Credit Obligation and (b) pursuant
to any Senior Notes Collateral Document has granted a Lien on any Common
Collateral owned by it to secure any Senior Notes Obligation; provided, however,
that solely for purposes of Section 2.03, a Subsidiary shall be deemed to
be a “Grantor” so long as it satisfies either clause (a) or (b) above
(even if it does not satisfy both clauses (a) and (b) above) so long
as such Subsidiary is required pursuant to the terms of the Revolving Credit
Documents and the Senior Notes Documents to grant a Lien on assets owned by it
to secure the Revolving Credit Obligations and the Senior Notes Obligations,
respectively.

 

“Indebtedness” means and includes all liabilities,
absolute or contingent, that constitute “Indebtedness” within the meaning of
the Revolving Credit Agreement or the Senior Notes Indenture.

 

“Insolvency
or Liquidation Proceeding” means (a) any voluntary or involuntary case
or proceeding under the Bankruptcy Code with respect to any Grantor or the
Canadian Borrower; (b) any other voluntary or involuntary insolvency,
reorganization or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding, with respect
to any Grantor or the Canadian Borrower, or with respect to a material portion
of the assets of any of the foregoing; (c) any liquidation, dissolution,
reorganization or winding up of any Grantor or the Canadian Borrower, whether
voluntary or involuntary and whether or not involving insolvency or bankruptcy;
or (d) any assignment for the benefit of creditors or any other
marshalling of assets and liabilities of any Grantor or the Canadian Borrower; provided,
in the case of any involuntary case or proceeding, that such case or proceeding
shall have continued for 60 days without having been dismissed or discharged.

 

“Intercompany
Note Collateral Account” has the meaning set forth in the Senior Notes
Indenture, as in effect on the date hereof.

 

“Junior
Agent” means, as to any Common Collateral, the Agent whose Liens on such
Common Collateral are junior and subordinated to the Liens of the other Agent
on such Common Collateral pursuant to the terms of this Agreement. The parties
hereto acknowledge that the Senior Notes Agent is the Junior Agent with respect
to the ABL Collateral and the Revolving Credit Agent is the Junior Agent with
respect to the Non-ABL Collateral, and that, accordingly, any reference herein
to the “Junior Agent”

 

5

 

shall be construed as a reference to the Senior Notes Agent insofar as
the ABL Collateral is concerned and to the Revolving Credit Agent insofar as
the Non-ABL Collateral is concerned.

 

“Junior
Collateral Documents” means, with respect to any Junior Liens, the
Collateral Documents pursuant to which such Liens are granted.

 

“Junior
Credit Documents” means (a) with respect to Junior Obligations that
are Senior Notes Obligations, the Senior Notes Documents, and (b) with
respect to Junior Obligations that are Revolving Credit Obligations, the
Revolving Credit Documents.

 

“Junior
Liens” means (a) with respect to the ABL Collateral or the Revolving
Credit Liens on the ABL Collateral, the Senior Notes Liens on such Collateral,
and (b) with respect to the Non-ABL Collateral or the Senior Notes Liens
on the Non-ABL Collateral, the Revolving Credit Liens on such Collateral.

 

“Junior
Obligations” means (a) with respect to any Common Collateral or any
Senior Liens thereon, any Obligations that are secured by Junior Liens on such
Common Collateral and (b) with respect to any Senior Obligations or Senior
Secured Parties secured by any Common Collateral, any Obligations that are
secured by Junior Liens on such Common Collateral, but only insofar as such
Obligations are secured by such Junior Liens, it being agreed that, to the
extent provided herein, such Obligations may also be secured by Senior
Liens on other Common Collateral and insofar as they shall be secured by such
Senior Liens on such other Common Collateral shall constitute Senior
Obligations with respect thereto.

 

“Junior
Secured Parties” means, as to any Common Collateral, the Secured Parties
whose Liens on such Common Collateral are junior and subordinated to the Liens
of the other Secured Parties on such Common Collateral pursuant to the terms of
this Agreement. The parties hereto acknowledge that the Senior Notes Secured
Parties are the Junior Secured Parties with respect to the ABL Collateral and
the Revolving Credit Secured Parties are the Junior Secured Parties with
respect to the Non-ABL Collateral, and that, accordingly, any reference herein
to the “Junior Secured Parties” shall be construed as a reference to the Senior
Notes Secured Parties insofar as the ABL Collateral is concerned and to the
Revolving Credit Secured Parties insofar as the Non-ABL Collateral is
concerned.

 

“Lien”
means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of
such asset, (b) the interest of a vendor or a lessor under any conditional
sale agreement, capital lease or title retention agreement (or any financing
lease having substantially the same economic effect as any of the foregoing)
relating to such asset and (c) in the case of securities, any purchase
option, call or similar right of a third party with respect to such securities.

 

“New Senior Agent” has the meaning set forth in Section 5.07.

 

6

 

“Non-ABL Collateral” means all Common Collateral
that is not ABL Collateral.

 

“Notes
Collateral Account” has the meaning set forth in the Senior Notes
Indenture, as in effect on the date hereof.

 

“Notice of New Senior Obligations” has the meaning
set forth in Section 5.07.

 

“Obligations” means all Revolving Credit
Obligations and all Senior Notes Obligations.

 

“Person”
means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other
entity.

 

“Pledged Collateral” has the meaning set forth in Section 5.04.

 

“Recovery” has the meaning set forth in Section 6.05.

 

“Refinance” means, in respect of any Indebtedness,
to refinance or replace, or to issue other indebtedness in exchange for or
replacement of, such Indebtedness in whole or in part. “Refinanced” and “Refinancing”
shall have correlative meanings.

 

“Related
Secured Parties” means (a) in the case of the Revolving Credit Agent,
the Revolving Credit Secured Parties and (b) in the case of the Senior
Notes Agent, the Senior Notes Secured Parties.

 

“Revolving
Credit Agent” has the meaning assigned to such term in the preamble to this
Agreement.

 

“Revolving
Credit Agreement” means the Credit Agreement dated as of the date hereof
among Symmetry, the Borrowers, the Revolving Credit Lenders, the Revolving
Credit Agent, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian agent, and
CIT Business Credit Canada, Inc., as Syndication Agent, as Amended from
time to time.

 

“Revolving
Credit Collateral” means all “Collateral”, as defined in the Revolving
Credit Agreement, on which any Lien has been granted by any Grantor to secure
any Revolving Credit Obligation.

 

“Revolving
Credit Collateral Documents” means the Revolving Credit Guarantee and
Collateral Agreement, the Revolving Credit Mortgages and any and all other
documents now existing or entered into after the date hereof that grant a Lien
on any assets of Symmetry or any of the Subsidiaries constituting Common
Collateral to secure any Revolving Credit Obligations.

 

7

 

“Revolving
Credit Documents” means the Revolving Credit Agreement and the Revolving
Credit Collateral Documents.

 

“Revolving
Credit Guarantee and Collateral Agreement” means the Guarantee and
Collateral Agreement dated as of the date hereof among Symmetry, the Borrowers,
the other Subsidiaries party thereto and the Revolving Credit Agent, as Amended
from time to time.

 

“Revolving
Credit Lenders” means, at any time, Persons that are at such time “Lenders”
under and as defined in the Revolving Credit Agreement.

 

“Revolving
Credit Liens” means Liens on the Common Collateral securing the Revolving
Credit Obligations, including all such Liens created under the Revolving Credit
Collateral Documents.

 

“Revolving
Credit Loan Parties” means the “Loan Parties” as defined in the Revolving
Credit Agreement.

 

“Revolving
Credit Mortgage” means each mortgage, deed of trust, assignment of leases
and rents, leasehold mortgage or other security document that grants a Lien on
any real property owned or leased by any Grantor to secure any Revolving Credit
Obligations.

 

“Revolving
Credit Obligations” means all “Obligations” at any time and from time to
time under and as defined in the Revolving Credit Guarantee and Collateral
Agreement, and all Amendments or
Refinancings of Revolving Credit Obligations.

 

“Revolving
Credit Secured Parties” means the “Secured Parties” as defined in the
Revolving Credit Guarantee and Collateral Agreement.

 

“Secured
Parties” means the Revolving Credit Secured Parties and the Senior Notes
Secured Parties.

 

“Senior
Agent” means, as to any Common Collateral, the Agent whose Liens on such
Common Collateral are senior to the Liens of the other Agent on such Common
Collateral pursuant to the terms of this Agreement. The parties hereto
acknowledge that the Revolving Credit Agent is the Senior Agent with respect to
the ABL Collateral and the Senior Notes Agent is the Senior Agent with respect
to the Non-ABL Collateral, and that, accordingly, any reference herein to the “Senior
Agent” shall be construed as a reference to the Revolving Credit Agent insofar
as the ABL Collateral is concerned and to the Senior Notes Agent insofar as the
Non-ABL Collateral is concerned.

 

“Senior Credit
Documents” means (a) with respect to Senior Obligations that are
Revolving Credit Obligations, the Revolving Credit Documents, and (b) with
respect to Senior Obligations that are Senior Notes Obligations, the Senior
Notes Documents.

 

8

 

“Senior
Lien Collateral” means (a) in the case of the Revolving Credit Secured
Parties insofar as they constitute Senior Secured Parties, ABL Collateral, and (b) in
the case of the Senior Notes Secured Parties insofar as they constitute Senior
Secured Parties, Non-ABL Collateral.

 

“Senior
Liens” means (a) with respect to the ABL Collateral or the Senior
Notes Liens on the ABL Collateral, the Revolving Credit Liens on such
Collateral, and (b) with respect to the Non-ABL Collateral or the
Revolving Credit Liens on the Non-ABL Collateral, the Senior Notes Liens on
such Collateral, and, in each case, any Liens incurred in connection with any
Refinancing of Senior Obligations that are deemed to be Senior Liens under Section 5.07.

 

“Senior
Notes” means (a) the Senior Secured Notes due 2015 issued by the US
Borrower on the date hereof in a Rule 144A or other private placement
transaction and (b) any substantially identical Senior Secured Notes due
2015 that are registered under the Securities Act of 1933, as amended, and
issued in exchange for the Senior Secured Notes described in clause (a) of
this definition.

 

“Senior
Notes Agent” has the meaning assigned to such term in the preamble to this
Agreement.

 

“Senior
Notes Collateral” means all “Collateral”, as defined in the Senior Notes
Indenture, on which any Lien has been granted by any Grantor to secure any
Senior Notes Obligation.

 

“Senior
Notes Collateral Agreement” means the Collateral Agreement dated as of the
date hereof among Symmetry, the other Senior Notes Guarantors, the US Borrower
and the Senior Notes Agent, as Amended from time to time.

 

“Senior
Notes Collateral Documents” means the Senior Notes Collateral Agreement,
the Senior Notes Mortgages and any and all other documents now existing or
entered into after the date hereof that grant a Lien on any assets of Symmetry
or any of the Subsidiaries constituting Common Collateral to secure any Senior
Notes Obligations.

 

“Senior
Notes Documents” means the Senior Notes Indenture and the Senior Notes
Collateral Documents.

 

“Senior
Notes Guarantors” means Symmetry and each “Subsidiary Guarantor”, as
defined in the Senior Notes Indenture.

 

“Senior
Notes Indenture” means the Indenture dated as of the date hereof among
Symmetry, the US Borrower, certain other Subsidiaries party thereto and the
Senior Notes Agent, as Amended from time to time.

 

“Senior
Notes Liens” means Liens on the Common Collateral securing the Senior Notes
Obligations, including all such Liens created under the Senior Notes Collateral
Documents.

 

9

 

“Senior
Notes Mortgage” means each mortgage, deed of trust, assignment of leases
and rents, leasehold mortgage or other security document that grants a Lien on
any real property owned or leased by any Grantor to secure any Senior Notes
Obligations.

 

“Senior
Notes Obligations” means all “Notes Obligations” at any time and from time
to time under and as defined in the Senior Notes Collateral Agreement, and all Amendments or Refinancings of Senior
Notes Obligations.

 

“Senior
Notes Secured Parties” means the “Secured Parties” as defined in the Senior
Notes Collateral Agreement.

 

“Senior
Obligations” means (a) with respect to any Common Collateral or any
Junior Liens thereon, any Obligations that are secured by Senior Liens on such
Common Collateral and (b) with respect to any Junior Obligations or Junior
Secured Parties secured by any Common Collateral, any Obligations that are
secured by Senior Liens on such Common Collateral, but only insofar as such
Obligations are secured by such Senior Liens, it being agreed that, to the
extent provided herein, such Obligations may also be secured by Junior
Liens on other Common Collateral and insofar as they shall be secured by such
Junior Liens on such other Common Collateral shall constitute Junior
Obligations with respect thereto.

 

“Senior
Secured Parties” means, as to any Common Collateral, the Secured Parties
whose Liens on such Collateral are senior to the Liens of the other Secured
Parties on such Common Collateral pursuant to the terms of this Agreement. The
parties hereto acknowledge that the Revolving Credit Secured Parties are the
Senior Secured Parties with respect to the ABL Collateral and the Senior Notes
Secured Parties are the Senior Secured Parties with respect to the Non-ABL
Collateral, and that, accordingly, any reference herein to the “Senior Secured
Parties” shall be construed as a reference to the Revolving Credit Secured
Parties insofar as the ABL Collateral is concerned and to the Senior Notes
Secured Parties insofar as the Non-ABL Collateral is concerned.

 

“subsidiary”
means, with respect to any Person (the “parent”) at any date, any other
Person the accounts of which would be consolidated with those of the parent in
the parent’s consolidated financial statements if such financial statements
were prepared in accordance with GAAP as of such date, as well as any other
Person (a) of which Equity Interests representing more than 50% of the
equity or more than 50% of the ordinary voting power or, in the case of a
partnership, more than 50% of the general partnership interests are, as of such
date, owned, controlled or held, or (b) that is, as of such date,
otherwise Controlled, by the parent or one or more subsidiaries of the parent
or by the parent and one or more subsidiaries of the parent.

 

“Subsidiary”
means any subsidiary of Symmetry.

 

“Symmetry”
has the meaning assigned to such term in the preamble to this Agreement.

 

10

 

“UCC” means the Uniform Commercial Code (or
any similar or equivalent legislation) as in effect in any applicable
jurisdiction.

 

“US
Borrower” has the meaning assigned to such term in the preamble to this
Agreement.

 

11

 

Section 1.03. Terms Generally. The definitions of terms set
forth herein shall apply equally to the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include”, “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation”. The word “will” shall be construed to have the same meaning and
effect as the word “shall”. Unless the context requires otherwise (a) any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as from time to time Amended (subject to any restrictions on such
Amendments set forth herein), (b) any definition of or reference to any
statute, regulation or other law herein shall be construed (i) as
referring to such statute, regulation or other law as from time to time Amended
(including by succession of comparable successor statutes, regulations or other
laws) and (ii) to include all official rulings and interpretations
thereunder having the force of law or with which affected Persons customarily
comply, (c) any reference herein to any Person shall be construed to
include such Person’s successors and assigns, (d) the words “herein”, “hereof”
and “hereunder”, and words of similar import, shall be construed to refer to
this Agreement in its entirety and not to any particular provision hereof, (e) all
references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement, and (f) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

 

ARTICLE II

 

Lien Priorities

 

Section 2.01. Relative Priorities. Notwithstanding (a) the
date, time, method, manner or order of grant, attachment or perfection of any
Junior Lien or Senior Lien on any Common Collateral, (b) any provision of
the UCC or any other applicable law or of the Revolving Credit Documents or the
Senior Notes Documents, (c) any defect or deficiency in, or failure to
perfect, any Senior Lien or (d) any other circumstance whatsoever, each
Agent, on behalf of itself and its Related Secured Parties, hereby agrees that:

 

(a)  any Senior Lien on any Common Collateral now or hereafter
held by or on behalf of the Senior Agent or any Senior Secured Party or any
agent or trustee therefor, regardless of how acquired, whether by grant,
possession, statute, operation of law, subrogation or otherwise, shall be
senior in all respects and prior to all Junior Liens on such Common Collateral;
and

 

(b)  any Junior Lien on any Common Collateral now or hereafter
held by or on behalf of the Junior Agent or any Junior Secured Party or any
agent or trustee therefor, regardless of how acquired, whether by grant,
possession, statute, operation of law, subrogation or otherwise, shall be
junior and subordinated in all respects to all Senior Liens on such Common
Collateral.

 

12

 

Any and all
foreclosure Proceeds relating to any Common Collateral shall be distributed (A) first,
to the Senior Secured Parties with respect thereto, (B) second, after
Discharge of Senior Obligations, to the Junior Secured Parties with respect
thereto, and (C) third, after Discharge of all Obligations, to the
applicable Grantor.

 

Notwithstanding
the foregoing or anything else to the contrary set forth herein or in any
Senior Notes Document or Revolving Credit Document, no Lien on Common
Collateral, insofar as such Lien secures any fees, or any amounts payable on
account of indemnification or reimbursement of expenses, owed to the Senior
Notes Agent, in its capacity as such, or to the Revolving Credit Agent, in its
capacity as such, shall be junior and subordinated pursuant to the foregoing
provisions to any other Lien on any Common Collateral.

 

13

 

Section 2.02. Prohibition on Contesting Liens. Each Agent,
on behalf of itself and its Related Secured Parties, agrees that none of them
will (and hereby waives any right to) contest or support any other Person in
contesting, in any proceeding (including any Insolvency or Liquidation
Proceeding), the perfection, priority, validity or enforceability of any Senior
Lien or any Junior Lien or the provisions of this Agreement; provided
that nothing in this Agreement shall be construed to prevent or impair the
right of any Agent or Secured Party to enforce this Agreement.

 

Section 2.03. No New Liens. Whether or not any Insolvency
or Liquidation Proceeding has been commenced by or against Symmetry or any
other Grantor, Symmetry and the other parties hereto agree that neither
Symmetry nor any other Grantor shall grant, and no Secured Party shall accept,
any additional Lien on any asset of Symmetry or such other Grantor to secure
any Obligation unless Symmetry or such other Grantor has granted or
concurrently grants a Lien on such asset to secure the other outstanding
Obligations (all such Liens to have the relative priorities set forth herein
based on whether the assets subject to such additional Liens constitute ABL
Collateral or Non-ABL Collateral); provided that, with respect to any
Lien granted under a Senior Notes Mortgage with respect to any real property
located in the State of New York, such Lien may be granted without a prior
or concurrent grant of a Lien thereon to secure the Revolving Credit
Obligations so long as, prior to the grant of such Lien under such Senior Notes
Mortgage, Symmetry or the applicable Grantor shall have given notice thereof to
the Revolving Credit Agent and the Revolving Credit Agent shall have notified
Symmetry that, pursuant to its authority under the Revolving Credit Agreement,
the Revolving Credit Agent shall forego such grant of a Lien to secure the
Revolving Credit Obligations. To the extent that the foregoing provisions are
not complied with for any reason, without limiting any other rights and
remedies available to the Senior Agent or the Senior Secured Parties, the
Junior Agent, for itself and on behalf of the Junior Secured Parties, agrees
that any amounts received by or distributed to any of them pursuant to or as a
result of Liens granted in contravention of this Section shall be subject
to Section 4.02.

 

ARTICLE III

 

Enforcement

 

Section 3.01. Exercise of Remedies. (a)  Until the
Discharge of Senior Obligations has occurred, whether or not any Insolvency or
Liquidation Proceeding has been commenced by or against Symmetry or any other
Grantor, neither the Junior Agent nor any Junior Secured Party will:

 

(i) exercise or seek to exercise any
rights or remedies with respect to any Common Collateral subject to any Senior
Lien (including the exercise of any right of setoff or any right under any
lockbox agreement, account control agreement, landlord waiver or bailee’s
letter or similar agreement or arrangement to which the Junior Agent or such
Junior Secured Party is a party) or institute any action or proceeding with
respect to such rights or remedies (including any action of foreclosure); provided,
that the parties hereto acknowledge and agree that this

 

14

 

Section shall not in any way prohibit the Junior Agent or any
Junior Secured Party from exercising any of its rights during an Insolvency or
Liquidation Proceeding to the extent permitted by the other provisions hereof;

 

(ii) contest, protest or object to any
foreclosure proceeding or action brought by the Senior Agent or any Senior
Secured Party or any other exercise by the Senior Agent or any Senior Secured
Party of any rights and remedies relating to any Common Collateral subject to
the Senior Agent’s or such Senior Secured Party’s Senior Lien, whether under
the applicable Senior Credit Documents or otherwise; or

 

(iii) object to the forbearance by the
Senior Agent or any Senior Secured Party from bringing or pursuing any foreclosure
proceeding or action or any other exercise of any rights or remedies relating
to any Common Collateral subject to the Senior Agent’s or such Senior Secured
Party’s Senior Lien;

 

provided,
that the Junior Liens granted on such Common Collateral shall attach to any
Proceeds of such Common Collateral resulting from actions taken by the Senior
Agent or any Senior Secured Party in accordance with this Agreement, subject to
the relative priorities set forth in Article II.

 

(b)  Subject to the terms and conditions of this Agreement, until
the Discharge of Senior Obligations has occurred, whether or not any Insolvency
or Liquidation Proceeding has been commenced by or against Symmetry or any
other Grantor, the Senior Agent and Senior Secured Parties shall have the
exclusive right to enforce rights, exercise remedies (including setoff and the
right to credit bid their debt) and make determinations regarding any release,
Disposition or restrictions with respect to any Common Collateral subject to
their Senior Liens without any consultation with or the consent of the Junior
Agent or any Junior Secured Party; provided, that the Junior Liens on
such Common Collateral shall remain on the Proceeds of such Common Collateral
released or Disposed of, subject to the relative priorities set forth in Article II.
In exercising rights and remedies with respect to the Common Collateral subject
to their Senior Liens, the Senior Agent and each Senior Secured Party may enforce
the provisions of the applicable Senior Credit Documents and exercise remedies
thereunder, all in such order and in such manner as they may determine in
the exercise of their sole discretion. Such exercise and enforcement shall
include the right of any agent appointed by them to sell or otherwise Dispose
of such Common Collateral upon foreclosure, to incur expenses in connection
with such sale or Disposition and to exercise all the rights and remedies of a
secured creditor under the UCC and of a secured creditor under Bankruptcy Laws
of any applicable jurisdiction.

 

(c)  Notwithstanding the foregoing provisions of this Section, the
Junior Agent and any Junior Secured Party may:

 

(i) file a claim or statement of
interest with respect to its Junior Obligations in any Insolvency or
Liquidation Proceeding that has been commenced by or against Symmetry or any
other Grantor;

 

15

 

(ii) take any action (not adverse to the
priority status of any Senior Liens on the Common Collateral or the rights of
the Senior Agent or any Senior Secured Party to exercise rights and remedies in
respect thereof) in order to create, perfect, preserve or protect its Junior
Lien on the Common Collateral;

 

(iii) file any necessary responsive or
defensive pleadings in opposition to any motion, claim, adversary proceeding or
other pleading made by any Person objecting to or otherwise seeking the
disallowance of the claims of the Junior Secured Parties, including any claims
secured by the Common Collateral, if any, in each case in accordance with the terms
of this Agreement;

 

(iv) exercise their rights and remedies
as unsecured creditors, as provided in paragraph (e) of this Section; and

 

(v) exercise the rights and remedies
provided for in Section 6.03(b).

 

The Junior
Agent, on behalf of itself and the Junior Secured Parties, agrees that it will
not take or receive any Common Collateral subject to any Senior Lien or any
Proceeds of any such Common Collateral in connection with the exercise of any
right or remedy (including setoff) with respect to such Common Collateral in
violation of this Agreement. Without limiting the generality of the foregoing,
until the Discharge of Senior Obligations has occurred, except as expressly
provided in Section 6.03(b) and this paragraph (c), the sole right of
the Junior Agent and each Junior Secured Party with respect to any Common
Collateral subject to any Senior Lien is to hold a Junior Lien on such Common
Collateral pursuant to the applicable Junior Collateral Documents for the
period and to the extent granted therein and to receive a share of the Proceeds
thereof, if any, remaining after the Discharge of Senior Obligations has
occurred.

 

(d)  The Junior Agent, for itself and on behalf of the Junior
Secured Parties:

 

(i) agrees that it and such Junior
Secured Parties will not take any action that would hinder or delay any
exercise of rights or remedies under the Senior Credit Documents or the
realization of the full value of the Common Collateral on which the Senior
Agent has Senior Liens or would otherwise be prohibited hereunder, including
any Disposition of any Common Collateral subject to any Senior Lien, whether by
foreclosure or otherwise;

 

(ii) waives any and all rights it or
such Junior Secured Parties may have as junior lien creditors or otherwise
to object to the manner in which the Senior Agent or any Senior Secured Party
seeks to enforce or collect any Senior Obligations or to enforce or realize on
the Senior Liens undertaken in accordance with this Agreement, regardless of
whether any action or failure to act by or on behalf of the Senior Agent or any
Senior Secured Party is adverse to the interests of the Junior Secured Parties;
and

 

(iii) acknowledges and agrees that no
covenant, agreement or restriction contained in the Junior Collateral Documents
or any other Junior Credit

 

16

 

Document (other than this Agreement) shall be deemed to restrict in any
way the rights and remedies of the Senior Agent or any Senior Secured Party
with respect to the Common Collateral subject to any Senior Lien as set forth
in this Agreement and the Senior Credit Documents.

 

17

 

(e)  Except as otherwise specifically set forth in paragraphs (a) and
(d) of this Section, the Junior Agent and any Junior Secured Party may exercise
rights and remedies available to it as an unsecured creditor of Symmetry or any
other Grantor in accordance with the terms of the Junior Credit Documents and
applicable law; provided that in the event that any Junior Secured Party
becomes a judgment Lien creditor in respect of any Common Collateral subject to
any Senior Lien as a result of its enforcement of its rights as an unsecured
creditor with respect to the applicable Junior Obligations, such judgment Lien
shall be subject to the terms of this Agreement to the same extent as the other
Liens securing the Junior Obligations. Nothing in this Agreement shall prohibit
the receipt by the Junior Agent or any Junior Secured Party of the required or
permitted payments of interest, principal and other amounts owed in respect of
the Junior Obligations so long as such receipt is not the direct or indirect
result of the exercise by the Junior Agent or any Junior Secured Party of
rights or remedies as a secured creditor (including the exercise of any right
of setoff) or enforcement in contravention of this Agreement of any Junior Lien
held by any of them. Nothing in this Agreement shall be construed to impair or
otherwise adversely affect any rights or remedies the Senior Agent or any
Senior Secured Party may have with respect to any Common Collateral
subject to its Senior Liens.

 

(f)   Subject to Section 2.03,
nothing in this Agreement shall restrict the Revolving Credit Agent or any
Revolving Credit Secured Party from exercising any right or remedy or taking
any other action with respect to (i) Revolving Credit Collateral that does
not constitute Common Collateral and (ii) any Canadian ABL Collateral.

 

ARTICLE IV

 

Payments

 

Section 4.01. Application of Proceeds. So long as the Discharge
of Senior Obligations has not occurred, whether or not any Insolvency or
Liquidation Proceeding has been commenced by or against Symmetry or any other
Grantor, Common Collateral or Proceeds thereof received in connection with the
sale or other disposition of, or collection on, such Common Collateral upon any
exercise of remedies shall, subject to Section 5.08, be applied to the
applicable Senior Obligations in the order specified in the relevant Senior
Credit Documents. Upon the Discharge of Senior Obligations, the Senior Agent
shall deliver to the Junior Agent any Common Collateral and Proceeds of Common
Collateral held by it in the form in which received, with any necessary
endorsements, or as a court of competent jurisdiction may otherwise
direct, to be applied by the Junior Agent to the applicable Junior Obligations
in the order specified in the relevant Junior Collateral Documents.

 

Section 4.02. Payments Over in Violation of Agreement. So
long as the Discharge of Senior Obligations has not occurred, whether or not
any Insolvency or Liquidation Proceeding has been commenced by or against
Symmetry or any other Grantor, if the Junior Agent or any Junior Secured Party
receives any Common Collateral subject to any Senior Lien or any Proceeds of
any such Common Collateral in connection with (i) the exercise of any
right or remedy (including any right of setoff) relating to such

 

18

 

Collateral in
contravention of this Agreement or (ii) the transfer of such Common
Collateral or Proceeds to the Junior Agent or Junior Secured Party by any
Person holding a Lien on such Collateral that is subordinated to the Lien of
the Junior Agent or Junior Secured Party, such Collateral or Proceeds shall be
segregated and held in trust and forthwith paid over to the Senior Agent with
respect to such Common Collateral for the benefit of the applicable Senior
Secured Parties in the form in which received, with any necessary
endorsements, or as a court of competent jurisdiction may otherwise direct.
The Senior Agent is hereby authorized to make any such endorsements as agent
for the Junior Agent or Junior Secured Parties (such authorization being
coupled with an interest and irrevocable until the Discharge of Senior
Obligations has occurred).

 

ARTICLE V

 

Other Agreements

 

Section 5.01. Releases. (a)  If in connection with the
exercise of the Senior Agent’s remedies in respect of any Common Collateral
subject to its Senior Liens, the Senior Agent, for itself or on behalf of the
Senior Secured Parties, releases its Senior Liens on any part of such
Common Collateral, then the Junior Liens on such Common Collateral shall be
automatically, unconditionally and simultaneously released; provided,
that such Junior Liens shall remain on the Proceeds of such Common Collateral,
subject to the relative priorities set forth in Article II. The Junior
Agent, for itself and on behalf of the Junior Secured Parties, agrees promptly
to execute and deliver to the Senior Agent or the applicable Grantor such
termination statements, releases and other documents as the Senior Agent or
such Grantor may request to confirm such release.

 

(b)  If in connection with any sale, lease, exchange, transfer or
other disposition of any Common Collateral (collectively, a “Disposition”)
permitted under the terms of both the Senior Credit Documents and the Junior
Credit Documents (other than in connection with the exercise of the Senior
Agent’s remedies in respect of Common Collateral as provided in paragraph (a) above),
the Senior Agent, for itself or on behalf of the Senior Secured Parties,
releases any of its Senior Liens on any part of such Common Collateral,
other than (i) in connection with the Discharge of Senior Obligations or (ii) after
the occurrence and during the continuance of any Event of Default under the
Junior Credit Documents, then the Junior Liens of the Junior Agent and the
Junior Secured Parties on such Collateral shall be automatically,
unconditionally and simultaneously released; provided, that such Junior
Liens shall remain on the Proceeds of such Common Collateral, subject to the
relative priorities set forth in Article II. The Junior Agent, for itself
or on behalf of the Junior Secured Parties, promptly shall execute and deliver
to the Senior Agent or the applicable Grantor such termination statements,
releases and other documents as the Senior Agent or such Grantor may request
to confirm such release.

 

(c)  Until the Discharge of Senior Obligations has occurred, the
Junior Agent, for itself and on behalf of the Junior Secured Parties, hereby
irrevocably constitutes and appoints the Senior Agent and any officer or agent
of the Senior Agent, with full power of substitution, as its true and lawful
attorney-in-fact with full power and

 

19

 

authority in
the name, place and stead of the Junior Agent or Junior Secured Parties or in
the Senior Agent’s own name, from time to time in the Senior Agent’s
discretion, for the purpose of carrying out the terms of this Section, to take
any and all action and to execute any and all documents and instruments which may be
necessary or appropriate to accomplish the purposes of this Section, including
any endorsements or other instruments of transfer or release.

 

(d)  Until the Discharge of Senior Obligations has occurred, to
the extent that the Senior Agent or Senior Secured Parties release any Senior
Lien on Common Collateral and any such Lien is later reinstated, then the
Junior Agent with respect to such Common Collateral, for itself and on behalf
of the Junior Secured Parties, shall have, and hereby is hereby granted, a Lien
on such Common Collateral, subject to the lien subordination provisions of this
Agreement.

 

Section 5.02. Insurance. Until the Discharge of Senior
Obligations has occurred, subject to the terms of, and the rights of the
Grantors under, the applicable Senior Credit Documents (including the rights of
the Grantors under the applicable Senior Credit Documents to exercise any such
rights in respect of insurance policies or condemnation or similar proceedings
in the absence of an Event of Default thereunder), the Senior Agent and Senior
Secured Parties shall have the right to adjust settlements for any insurance
policy covering any Common Collateral subject to their Senior Liens in the
event of any loss thereunder and to approve any award granted in any
condemnation or similar proceeding (or any deed in lieu of condemnation)
affecting such Common Collateral. Until the Discharge of Senior Obligations has
occurred, subject to the terms of, and the rights of the Grantors under, the
Senior Credit Documents, all proceeds of any such policy and any such award (or
any payments with respect to a deed in lieu of condemnation) if in respect to
such Common Collateral shall be paid to the Senior Agent for the benefit of the
Senior Secured Parties and, following the Discharge of Senior Obligations, and
subject to the terms of, and the rights of the Grantors under, the Junior
Credit Documents, to the Junior Agent for the benefit of the Junior Secured
Parties and, following the Discharge of Junior Obligations, to the owner of the
subject property, such other Person as may be entitled thereto or as a
court of competent jurisdiction may otherwise direct. Until the Discharge
of Senior Obligations has occurred, if the Junior Agent or any Junior Secured
Party shall, at any time, receive any proceeds of any such insurance policy or
any such award or payment in contravention of this Agreement, it shall
segregate and hold in trust and forthwith pay such proceeds over to the Senior
Agent in accordance with Section 4.02.

 

Section 5.03. Amendments to Senior Credit Documents and Junior
Credit Documents. (a)    Each Senior Credit Document may be
Amended in accordance with the terms thereof, and all Indebtedness under each
Senior Credit Document may be Refinanced in accordance with the terms
thereof, except, in each case, as prohibited under the Junior Credit Documents
as in effect on the date hereof and as Amended from time to time (but without
giving effect to any Amendment that prohibits or restricts the Amendment of any
Senior Credit Document or the Refinancing of any Indebtedness under any Senior
Credit Document to a greater extent than the provisions of such Junior

 

20

 

Credit
Documents in effect on the date hereof). No Amendment of any Senior Credit
Document shall affect the lien subordination or other provisions of this
Agreement.

 

(b)  Each Junior Credit Document may be Amended in accordance
with the terms thereof, and all Indebtedness under each Junior Credit Document may be
Amended or Refinanced in accordance with the terms thereof, except, in each
case, as prohibited under the Senior Credit Documents as in effect on the date
hereof and as Amended from time to time (but without giving effect to any
Amendment that prohibits or restricts the Amendment of any Junior Credit
Document or the Refinancing of any Indebtedness under any Junior Credit
Document to a greater extent than the provisions of such Senior Credit
Documents in effect on the date hereof). No Amendment of any Junior Credit
Document shall affect the lien subordination or other provisions of this
Agreement.

 

(c)  Symmetry agrees that each Junior Collateral Document shall
include the following language (or language to similar effect approved by the
Senior Agent):

 

“Notwithstanding
anything herein to the contrary, the lien and security interest granted
pursuant to this Agreement and the exercise of any right or remedy hereunder
are subject to the provisions of the Lien Subordination and Intercreditor
Agreement dated as of November 15, 2007, (as amended, restated,
supplemented or otherwise modified from time to time, the “Intercreditor
Agreement”), among Symmetry Holdings Inc., Novamerican Steel Finco Inc., the
other subsidiaries of Symmetry Holdings Inc. party thereto, JPMorgan Chase
Bank, N.A., as Administrative Agent under the Revolving Credit Agreement
referred to therein, and The Bank of New York, as Collateral Agent for the
holders of the Senior Notes issued under the Indenture referred to therein. In
the event of any conflict between the terms of the Intercreditor Agreement and
this Agreement, the terms of the Intercreditor Agreement shall govern and
control.”

 

21

 

Section 5.04. Bailee for Perfection. (a)  The Senior
Agent agrees to hold that part of the Common Collateral on which it holds
a Senior Lien and that is in its possession or control, or in the possession or
control of its agents or bailees (such Collateral being the “Pledged
Collateral”), as collateral agent for the Senior Secured Parties and as
gratuitous bailee for the Junior Agent (such bailment being intended, among
other things, to satisfy the requirements of Sections 8-301(a)(2) and
9-313(c) of the UCC) and any assignee thereof solely for the purpose of
perfecting the security interests granted under the applicable Senior Credit
Documents and Junior Credit Documents, respectively, subject to the terms and
conditions of this Section. The Junior Agent agrees to hold any part of
the Pledged Collateral of which it obtains possession or control (including
through any of its agents or bailees) as collateral agent for the Senior
Secured Parties and Junior Secured Parties and any assignees of the foregoing
solely for the purpose of perfecting the security interest granted under the
applicable Junior Credit Documents and Senior Credit Documents, respectively,
subject to the terms and conditions of this Section.

 

(b)  The Senior Agent shall have no obligation whatsoever to the
applicable Senior Secured Parties, the Junior Agent or the Junior Secured
Parties to ensure that any Pledged Collateral is genuine or owned by any of the
Grantors or to preserve rights or benefits of any Person except as expressly
set forth in this Section. The duties or responsibilities of the Senior Agent
to the Junior Agent or the Junior Secured Parties under this Section shall
be limited solely to holding Pledged Collateral in its possession or under its
control as gratuitous bailee in accordance with this Section and
delivering such Pledged Collateral upon the Discharge of Senior Obligations as
provided in paragraph (d) below.

 

(c)  The Senior Agent, acting pursuant to this Section, shall not
have by reason of the Senior Credit Documents, the Junior Credit Documents,
this Agreement or any other document a fiduciary relationship in respect of any
Senior Secured Party, the Junior Agent or any Junior Secured Party or any
liability to any Senior Secured Party, the Junior Agent or any Junior Secured
Party, absent gross negligence or willful misconduct on the part of the
Senior Agent.

 

(d)  Upon the Discharge of Senior Obligations, the Senior Agent
shall deliver the remaining Pledged Collateral held by it, if any, together
with any necessary endorsements, first, to the Junior Agent to the
extent Junior Obligations remain outstanding, and second, to the
applicable Grantors to the extent no Senior Obligations or Junior Obligations
remain outstanding (in each case, so as to allow such Person to obtain
possession or control of such Pledged Collateral). The Senior Agent further
agrees, upon the Discharge of Senior Obligations, to take all other action
reasonably requested by the Junior Agent in connection with the Junior Agent
obtaining a first-priority interest in the Pledged Collateral or as a court of
competent jurisdiction may otherwise direct.

 

(e)  Subject to the terms of this Agreement, so long as the
Discharge of Senior Obligations has not occurred, the Senior Agent shall be
entitled to deal with the Pledged Collateral or Collateral within its “control”
in accordance with the terms of this

 

22

 

Agreement and
the applicable Senior Credit Documents as if the Liens of the Junior Agent and
the Junior Secured Parties did not exist.

 

Section 5.05. Entry Upon Premises by Revolving Credit Agent.
(a)  If the Senior Notes Agent shall take any action to exercise its
rights or remedies with respect to the Non-ABL Collateral, the Senior Notes
Agent (i) shall cooperate with any efforts on the part of the
Revolving Credit Agent to exercise its rights and remedies with respect to the
ABL Collateral, to complete the processing of any Inventory (including
work-in-process) included in the ABL Collateral and to assemble the ABL
Collateral, (ii) shall not hinder or restrict in any respect the Revolving
Credit Agent from enforcing its security interest in, or exercising any other
rights or remedies with respect to, the ABL Collateral or from completing the
manufacturing and processing of, and turning into finished goods, any ABL
Collateral (including raw materials and work-in-process) and assembling the ABL
Collateral and (iii) shall permit the Revolving Credit Agent, its agents,
advisers and representatives, at the sole cost and expense of the Revolving
Credit Secured Parties, to enter upon and use the Non-ABL Collateral (including
manufacturing, storage and transportation facilities and equipment, computers,
records, documents and files and intellectual property) for a period not to
exceed 270 days after the date on which the Senior Notes Agent shall obtain
possession and control of such Non-ABL Collateral, for purposes of (A) assembling
and storing the ABL Collateral and completing the manufacturing and processing
of, and turning into finished goods, any ABL Collateral (including raw
materials and work-in-process), (B) selling any or all of the ABL
Collateral located on such Non-ABL Collateral, whether in bulk, in lots or to
customers in the ordinary course of business or otherwise, (C) removing
any or all of the ABL Collateral located on such Non-ABL Collateral and (D) taking
reasonable actions to protect, secure and otherwise enforce the rights of the
Revolving Credit Agent and the Revolving Credit Secured Parties in the ABL
Collateral; provided, however, that nothing contained in this
Agreement shall restrict the Senior Notes Agent from selling, assigning or
otherwise transferring any Non-ABL Collateral prior to the expiration of such
270 day period if the purchaser, assignee or transferee agrees to be bound by
the provisions of this Section. It is agreed that if any stay or other order
prohibiting the exercise of rights or remedies with respect to the ABL
Collateral has been entered by a court of competent jurisdiction, such 270 day
period shall be tolled during the pendency of any such stay or other order; provided
that after the 270th day following the date on which the Senior Notes Agent
shall obtain possession and control of any Non-ABL Collateral, such period
shall terminate as to such Non-ABL Collateral if the Senior Notes Agent shall
determine in good faith and advise the Revolving Credit Agent that the
continuance of such period would prevent a contemplated sale of such Non-ABL
Collateral or materially reduce the price obtainable in such sale. Notwithstanding
anything in this paragraph to the contrary, the Senior Notes Agent and the
Senior Notes Secured Parties (i) shall have no obligation to exercise
rights or remedies that may be available to them under the Senior Notes
Credit Documents and (ii) shall be required to permit the Revolving Credit
Agent, and its agents, advisers and representatives, to enter upon and use the
Non-ABL Collateral only to the extent the Senior Notes Agent or the Senior
Notes Secured Parties have possession and control of such Non-ABL Collateral.

 

23

 

(b)  If the Revolving Credit Agent elects to enter upon and use
the Non-ABL Collateral as provided in paragraph (a) of this Section, it
shall take all reasonable efforts (and shall direct its agents, advisers and
representatives to take all reasonable efforts) to avoid, to the extent
reasonably practicable, interference with the operation of the Non-ABL
Collateral. Subject to the Senior Notes Agent having obtained possession and
control of any of the Non-ABL Collateral, the Senior Notes Agent may instruct
the Revolving Credit Agent in writing to remove all ABL Collateral from such
Non-ABL Collateral by the end of the 270 day period referred to in paragraph (a) of
this Section, whereupon, at the end of such 270 day period, the Revolving
Credit Agent shall, at the sole cost and expense of the Revolving Credit
Secured Parties, remove the ABL Collateral from the Non-ABL Collateral; provided
that no stay or other order prohibiting such removal has been entered by a
court of competent jurisdiction (it being understood and agreed that the
running of such 270 day period shall be tolled during the pendency of any such
stay or other order). If the Revolving Credit Agent does not remove the ABL
Collateral from the Non-ABL Collateral by the end of such 270 day period (or
such longer period as such a stay or other order is in effect), the Senior
Notes Agent may cause the ABL Collateral to be removed and, thereafter,
store the ABL Collateral in such location or locations as the Senior Notes
Agent shall deem advisable pending repossession by the Revolving Credit Agent. Any
costs reasonably incurred by the Senior Notes Agent or the Senior Notes Secured
Parties by virtue of such removal and storage shall be paid by the Revolving
Credit Secured Parties. The Senior Notes Agent agrees to notify the Revolving
Credit Agent of the location or locations to which any of the ABL Collateral
shall have been removed by it pursuant to the foregoing provisions.

 

(c)  During the period of actual occupation, use or control by the
Revolving Credit Agent, or its agents, advisers or representatives, of any
Non-ABL Collateral, the Revolving Credit Secured Parties shall be obligated to (i) reimburse
the Senior Notes Agent for all utilities, insurance and all other operating
costs of such Non-ABL Collateral during any such period of actual occupation,
use or control (calculated on a per diem basis based upon a fraction, the
numerator of which shall be the actual number of days of such occupation, use
or control and the denominator of which shall be 365 days) to the extent the
same are actually paid by the Senior Notes Agent or the Senior Notes Secured
Parties, (ii) repair at their expense any physical damage to such Non-ABL
Collateral directly resulting from such occupancy, use or control, and leave
such Non-ABL Collateral in substantially the same condition as it was at the
commencement of such occupancy, use or control, and (iii) indemnify and hold
harmless the Senior Notes Agent and the Senior Notes Secured Parties from and
against any losses, claims, liabilities, costs or expenses directly resulting
from such occupancy, use or control or from any acts or omissions of the
Revolving Credit Agent or its agents, advisers or representatives in connection
therewith. Notwithstanding the foregoing, in no event shall the Revolving
Credit Secured Parties have any liability to the Senior Notes Agent or the
Senior Notes Secured Parties pursuant to this Section as a result of any
condition (including any environmental condition, claim or liability) on or
with respect to the Non-ABL Collateral existing prior to the date of the
exercise by the Revolving Credit Agent of its rights under this Section, and
the Revolving Credit Secured Parties shall have no duty or liability to
maintain the Non-ABL Collateral in a condition or manner better than that in
which it was maintained prior to the use thereof by the Revolving Credit Agent
or its agents, advisers or representatives, or for any diminution in the value
of the Non-ABL Collateral that results solely from ordinary wear and tear
resulting from the use of the Non-ABL Collateral by the Revolving Credit Agent
or its

 

24

 

agents,
advisers or representatives in the manner and for the time periods specified
under this Section. Without limiting the rights granted in this Section, the
Revolving Credit Agent and the Revolving Credit Secured Parties shall cooperate
with the Senior Notes Agent in connection with any efforts made by it to sell
the Non-ABL Collateral.

 

(d)  The foregoing provisions of this Section shall apply, mutatis
mutandis, to any exercise of rights or remedies by the Senior Notes Agent,
or any of its Affiliates, or the Senior Notes Secured Parties with respect to
any Canadian Non-ABL Collateral securing obligations under any Canadian
Intercompany Note and any exercise of rights or remedies by the Revolving
Credit Agent, or any of its Affiliates, or the Revolving Credit Secured Parties
with respect to the Canadian ABL Collateral located on such Canadian Non-ABL
Collateral, as well as any exercise of rights and remedies available to the
Revolving Credit Agent, or any of its Affiliates, or the Revolving Credit Secured
Parties, with respect to the Canadian ABL Collateral by a receiver, interim
receiver or receiver and manager appointed by the Revolving Credit Agent, or
any of its Affiliates, or by a court of competent jurisdiction (each, a “Receiver”).
In furtherance of the foregoing, each of the US Borrower and the Senior Notes
Agent agrees that (i) upon the request of the Revolving Credit Agent, it
will support and join in any application for relief brought by the Revolving
Credit Agent under the applicable Canadian insolvency laws for the appointment
of a court-appointed Receiver in respect of the Canadian Borrower and (ii) it
will not contest, protest or object to any action brought by the Revolving
Credit Agent or any Receiver in connection with any exercise of the rights and
remedies of the Revolving Credit Agent in respect of the Canadian ABL
Collateral provided in the Revolving Credit Documents.

 

Section 5.06. Rights under Permits, Licenses and Intellectual
Property. The Senior Notes Agent agrees that if the Revolving Credit Agent
shall require rights available under any permit, license or Intellectual
Property controlled by the Senior Notes Agent, or any of its Affiliates, in
order to realize on any ABL Collateral or any Canadian ABL Collateral, the
Senior Notes Agent shall take all such actions as shall be available to it,
consistent with applicable law and reasonably requested by the Revolving Credit
Agent, to make such rights available to the Revolving Credit Agent. The
Revolving Credit Agent agrees that if the Senior Notes Agent shall require
rights available under any permit, license or Intellectual Property controlled
by the Revolving Credit Agent in order to realize on any Non-ABL Collateral,
the Revolving Credit Agent shall take all such actions as shall be available to
it, consistent with applicable law and reasonably requested by the Senior Notes
Agent, to make such rights available to the Senior Notes Agent. Each Agent and
the US Borrower agrees that any sale or other transfer of any Common Collateral
or any Canadian Non-ABL Collateral consisting, in each case, of Intellectual
Property upon any exercise of remedies shall be made expressly subject to the
rights to be made available pursuant to this Section.

 

Section 5.07. When Discharge of Senior Obligations Deemed Not
To Have Occurred. If Symmetry or any other Grantor shall enter into any
Refinancing of

 

25

 

any Senior
Obligations that is (a) permitted by the Junior Credit Documents and (b) secured
by Liens on Common Collateral subject to Senior Liens securing such Refinanced
Senior Obligations, then a Discharge of Senior Obligations shall be deemed not
to have occurred for all purposes of this Agreement and, subject to the next
sentence, from and after the date on which the Notice of New Senior Obligations
referred to below in this Section is delivered to the Junior Agent, (i) the
obligations under such Refinancing of the Senior Obligations shall
automatically be treated as Senior Obligations (to the same extent as the
Refinanced Senior Obligations), (ii) the Liens securing such Refinancing
of the Senior Obligations shall be treated as Senior Liens (to the same extent
as the corresponding Liens securing the Refinanced Senior Obligations) for all
purposes of this Agreement, including for purposes of the provisions governing
Lien priorities and rights in respect of Common Collateral set forth herein,
and (iii) the collateral agent for such Refinancing of the Senior
Obligations (the “New Senior Agent”) shall be the Senior Agent for all
purposes of this Agreement (to the same extent as the Agent for the Refinanced
Senior Obligations). If any Senior Obligations shall be Refinanced in part but
not in whole, then (A) both the remaining Senior Obligations and the
obligations under such Refinancing shall have the status of Senior Obligations
hereunder, (B) the Liens on any Common Collateral securing the obligations
under such Refinancing shall constitute Senior Liens to the same extent as the
Liens on such Collateral securing such remaining Senior Obligations (it being
understood and agreed that the relative rights of, and priorities of the Liens
securing, the obligations under such Refinancing and such remaining Senior
Obligations shall not be governed by this Agreement) and (C) the original
Senior Agent and the New Senior Agent shall each have the rights and
obligations of the Senior Agent hereunder; provided, that (x) in the
event any determinations made or notices given hereunder by the original Senior
Agent and the New Senior Agent shall conflict, the determination made or notice
given by the Senior Agent representing the greater amount of Senior Obligations
shall control and (y) any Pledged Collateral held by either Senior Agent shall
be held by it both in its own right and as bailee of the other Senior Agent (in
accordance with the provisions and subject to the limitations set forth in Section 5.04),
as their interests may appear. Upon receipt of a notice (the “Notice of
New Senior Obligations”) stating that Symmetry or any Grantor has
Refinanced any Senior Obligations as provided above (which notice shall include
the identity of the new Senior Agent), the original Senior Agent and the Junior
Agent shall promptly enter into such documents and agreements (including Amendments
to this Agreement) as Symmetry or such New Senior Agent shall reasonably
request in order to provide to the New Senior Agent the rights contemplated
hereby. As a condition to its ability to enforce this Agreement, the New Senior
Agent shall agree in a writing addressed to the Junior Agent, for the benefit
of the Junior Secured Parties, and, if any portion of the original Senior
Obligations shall remain outstanding, to the original Senior Agent, for the
benefit of the original Senior Secured Parties, to be bound by the terms of
this Agreement. The provisions of this Section are intended to ensure that
(i) the Liens on any Common Collateral securing any Refinancing of Senior
Obligations will have the same priorities relative to the Liens on such Common
Collateral securing the Junior Obligations as the Liens that secured such
Refinanced Senior Obligations prior to such Refinancing and (ii) the
parties benefited by the Liens on any Common Collateral securing any
Refinancing of Senior Obligations will have the same rights and obligations

 

26

 

relative to
the parties holding Liens on such Common Collateral securing the Junior
Obligations as the parties that were benefited by the Liens that secured such
Refinanced Senior Obligations, and such provisions shall be construed
accordingly.

 

Section 5.08. Canadian Intercompany Notes. The parties
hereto acknowledge and agree that, notwithstanding the status of the Canadian
Intercompany Notes as Non-ABL Collateral or any other provision of this
Agreement governing the rights of the parties hereto with respect to the
Canadian Non-ABL Collateral and the Proceeds thereof, the Senior Notes Agent,
on behalf of itself and the Senior Notes Secured Parties, agrees that (a) neither
it nor any of the Senior Notes Secured Parties (nor any of the Secured Parties
under and as defined in the Canadian Intercompany Notes Documents) will
exercise any rights or remedies against, or otherwise seek to realize on, any
Canadian ABL Collateral securing any Canadian Intercompany Note at any time
prior to the Discharge of the Canadian Revolving Credit Obligations and (b) any
Proceeds or other amounts received by the Senior Notes Agent or any Senior
Notes Secured Party (or any Secured Party under and as defined in the Canadian
Intercompany Notes Documents) as a result of any exercise of rights or remedies
against or realization upon any Canadian ABL Collateral securing any Canadian
Intercompany Note at any time prior to the Discharge of the Canadian Revolving
Credit Obligations shall be segregated and held in trust and forthwith paid
over to the Revolving Credit Agent, for the benefit of the Revolving Credit
Secured Parties, in the form in which received, with any necessary
endorsements, and shall be applied to satisfy and discharge the Canadian
Revolving Credit Obligations (with any amount remaining after the Discharge of
the Canadian Revolving Credit Obligations to be applied in the manner specified
in the relevant Senior Notes Credit Document).

 

ARTICLE VI

 

Insolvency or Liquidation Proceedings

 

Section 6.01. Cash Collateral and DIP Financing. Until the
Discharge of the Revolving Credit Obligations has occurred, if Symmetry or any
other Grantor shall be subject to any Insolvency or Liquidation Proceeding and
the Revolving Credit Agent shall desire to permit the use of “Cash Collateral”
(as such term is defined in Section 363(a) of the Bankruptcy Code) or
to permit Symmetry or any other Grantor to obtain financing under Section 364
of the Bankruptcy Code or any similar Bankruptcy Law (any such financing being
a “DIP Financing”), then the Senior Notes Agent, on behalf of
itself and the Senior Notes Secured Parties, agrees that it will raise no
objection to such Cash Collateral use or such DIP Financing, insofar as
its rights with respect to the ABL Collateral are affected. To the extent
the Revolving Credit Liens on the ABL Collateral are subordinated to or pari
passu with any such DIP Financing, the Senior Notes Agent, on behalf of
itself and the Senior Notes Secured Parties, shall subordinate, and hereby
subordinates, to the same extent the Senior Notes Liens of the Senior Notes
Agent and the Senior Notes Secured Parties on the ABL Collateral to the
Liens securing such DIP Financing (and all obligations relating thereto)
and agrees, on behalf of itself and the Senior Notes Secured Parties, that none
of the Senior Notes Agent or any Senior Notes Secured Party will request
adequate protection or any other relief in connection

 

27

 

with its
rights as a holder of Liens on the ABL Collateral (except as expressly
agreed by the Revolving Credit Agent or to the extent permitted by Section 6.03).

 

Section 6.02. Relief from the Automatic Stay. Until the
Discharge of Senior Obligations has occurred, the Junior Agent, on behalf of
itself and the Junior Secured Parties, agrees that none of them shall seek (or
support any other Person seeking) relief from the automatic stay or any other
stay in any Insolvency or Liquidation Proceeding in respect of any
Common Collateral subject to a Senior Lien without the prior written
consent of the Senior Agent. The Junior Agent, on behalf of itself and the
Junior Secured Parties, agrees that none of them shall oppose (or support any
other Person opposing) any motion of the Senior Agent seeking relief from the
automatic stay or any other stay in any Insolvency or Liquidation Proceeding in
respect of any Common Collateral subject to its Senior Lien.

 

Section 6.03. Adequate Protection. (a)  The Junior
Agent, on behalf of itself and the Junior Secured Parties, agrees that none of
them shall contest (or support any other Person contesting):

 

(i) any request by the Senior Agent or
Senior Secured Parties for adequate protection with respect to their Senior
Liens on any Common Collateral; or

 

(ii) any objection by the Senior Agent
or Senior Secured Parties to any motion, relief, action or proceeding based on
the Senior Agent or Senior Secured Parties claiming a lack of adequate
protection with respect to their Senior Liens on any Common Collateral.

 

(a)                                  Notwithstanding
the foregoing provisions in this Section, in any Insolvency or Liquidation
Proceeding:

 

(iii) if the Senior Agent or any Senior
Secured Parties are granted adequate protection in the form of additional
collateral of a type that would constitute Senior Lien Collateral of the Senior
Agent or such Senior Secured Parties, then (A) the Junior Agent, on behalf
of itself or any of the Junior Secured Parties, may seek or request
adequate protection in the form of a Lien on such additional collateral,
which Lien will be junior and subordinated to the Liens securing the Senior
Obligations (and, in the case of any such Lien on additional collateral that
would constitute ABL Collateral, to any DIP Financing (and all obligations
related thereto) permitted by the Revolving Credit Agent) on the same basis as
the other Liens on Senior Lien Collateral securing the Junior Obligations
are so junior and subordinated to the Liens on such Collateral securing
the Senior Obligations under this Agreement and (B) subject to clause (ii) below,
the Senior Agent, on behalf of itself and the Senior Secured Parties, agrees
that none of them shall contest (or support any other Person contesting) (1) any
request by the Junior Agent, on behalf of itself or any Junior Secured Party
for adequate protection pursuant to the preceding clause (A) or (2) any
motion, relief, action or proceeding in support of a request for adequate
protection pursuant to the preceding clause (A); and

 

28

 

(iv) if the Junior Agent or any Junior
Secured Parties are granted adequate protection in the form of additional
collateral of a type that would constitute Senior Lien Collateral of the
Senior Secured Parties, then the Junior Agent, on behalf of itself and the
Junior Secured Parties, agrees that the Senior Agent shall also be granted a
Lien on such additional collateral as security for the Senior Obligations (and,
in the case of any such Lien on additional collateral that would constitute ABL
Collateral, for any DIP Financing (and all obligations related thereto)
provided by the Revolving Credit Secured Parties) and that any Lien on such
additional collateral securing the Junior Obligations shall be junior and
subordinated to the Lien on such collateral securing the Senior Obligations
(and any such DIP Financing and related obligations) and to any other
Liens granted to the Senior Secured Parties as adequate protection on the same
basis as the other Liens on Common Collateral securing the Junior
Obligations are so subordinated to the Liens on Common Collateral securing
the Senior Obligations under this Agreement.

 

Section 6.04. No Waiver. Subject to Sections 3.01(c) and
3.01(e), nothing contained herein shall prohibit or in any way limit the Senior
Agent or any Senior Secured Party from objecting in any Insolvency or
Liquidation Proceeding or otherwise to any action taken by the Junior Agent or
any Junior Secured Party, including the seeking by any such Junior Agent or any
Junior Secured Party of adequate protection or the asserting by any such Junior
Agent or any Junior Secured Party of any of its rights and remedies under the
applicable Junior Credit Documents or otherwise, in each case to the extent
affecting the Senior Agent’s or such Senior Secured Parties’ rights in its
Senior Lien Collateral.

 

Section 6.05. Avoidance Issues. If any Senior Secured Party
is required in any Insolvency or Liquidation Proceeding or otherwise to turn
over or otherwise pay to the estate of Symmetry or any other Grantor any amount
paid in respect of Senior Obligations (a “Recovery”), then such Senior
Secured Party shall be entitled to a reinstatement of the applicable Senior
Obligations with respect to all such recovered amounts. If the Revolving Credit
Agent or any Revolving Credit Secured Party is required in any Insolvency or
Liquidation Proceeding or otherwise to turn over or otherwise pay to the estate
of Symmetry or the Canadian Borrower or any of its Subsidiaries any amount paid
in respect of the Canadian Revolving Credit Obligations (a “Canadian
Recovery”), then such Revolving Credit Secured Party shall be entitled to a
reinstatement of the applicable Canadian Revolving Credit Obligations with
respect to all such recovered amounts. If this Agreement shall have been
terminated prior to such Recovery or such Canadian Recovery, this Agreement
shall be reinstated in full force and effect, and such prior termination shall
not diminish, release, discharge, impair or otherwise affect the obligations of
the parties hereto from such date of reinstatement.

 

Section 6.06. Post-Petition Interest. The Junior Agent
agrees, on behalf of itself and the Junior Secured Parties, that none of them
shall oppose or seek to challenge any claim by the Senior Agent or any Senior
Secured Party for allowance in any Insolvency or Liquidation Proceeding of
Senior Obligations consisting of post-petition interest, fees or expenses to
the extent of the value of the Senior Agent’s or such

 

29

 

Senior Secured
Party’s Senior Lien on its Senior Lien Collateral, without regard to the
existence of the Junior Lien of the Junior Agent or any Junior Secured Party on
such Senior Lien Collateral.

 

Section 6.07. Separate Grants of Security and Separate
Classification. Each of the Revolving Credit Agent, for itself and on
behalf of the Revolving Credit Secured Parties, and the Senior Notes Agent, for
itself and on behalf of the Senior Notes Secured Parties, acknowledges and agrees
that (a) the grants of Liens pursuant to the Revolving Credit Collateral
Documents and the Senior Notes Collateral Documents constitute separate and
distinct grants of Liens; and (b) because of, among other things, their
differing rights in the ABL Collateral and the Non-ABL Collateral, the
Revolving Credit Obligations and the Senior Notes Obligations are fundamentally
different from one another and must be separately classified in any plan of
reorganization proposed or adopted in an Insolvency or Liquidation Proceeding
(other than any such plan of reorganization that provides for the payment in
full and in cash of the aggregate principal amount of (and accrued interest,
fees, premiums and expenses under) the Revolving Credit Obligations and Senior Notes
Obligations). To further effectuate the intent of the parties as provided in
the immediately preceding sentence, if it is held that the claims of the
Revolving Credit Secured Parties and the Senior Notes Secured Parties or any of
them in respect of any ABL Collateral or Non-ABL Collateral constitute
only one secured claim (rather than separate classes of secured claims), then
each of the parties hereto hereby acknowledges and agrees that, subject to
Sections 2.01 and 4.01, all distributions shall be made as if there were
separate classes of secured claims against the Grantors in respect of such
ABL Collateral or Non-ABL Collateral (with the effect being that, to the
extent that the aggregate value of such ABL Collateral or Non-ABL
Collateral is sufficient (for this purpose ignoring all claims held by the
Junior Secured Parties), the Senior Secured Parties shall be entitled to
receive, in addition to amounts otherwise distributed to them in respect of
principal, pre-petition interest and other claims, all amounts owing in respect
of post-petition interest, fees and expenses (including any additional interest
payable pursuant to the applicable Senior Credit Documents arising from or
related to a default) that are disallowed as a claim in any Insolvency or Liquidation
Proceeding before any distribution in respect of ABL Collateral or Non-ABL
Collateral, as the case may be, is made in respect of the claims held by
the Junior Secured Parties, with the Junior Agent, for itself and on behalf of
the Junior Secured Parties, hereby acknowledging and agreeing to turn over to
the Senior Agent, for itself and on behalf of the Senior Secured Parties,
amounts otherwise received or receivable by them to the extent necessary to
effectuate the intent of this sentence (with respect to the payment of
post-petition interest, fees and expenses), even if such turnover has the
effect of reducing the claim or recovery of the Junior Secured Parties).

 

Section 6.08. Voting.
Each of the parties hereto acknowledges and agrees that no Junior Agent or
Junior Secured Party shall be required to vote to approve any plan of
reorganization with respect to any Grantor for any reason or to agree that any
provision of any Junior Credit Document shall survive the effectiveness of any
plan of reorganization with respect to any Grantor in an Insolvency or
Liquidation Proceeding.

 

30

 

ARTICLE VII

 

Reliance; Waivers; Etc.

 

Section 7.01. Reliance. Other than any reliance on the
terms of this Agreement, the Senior Agent, on behalf of the Senior Secured
Parties, acknowledges that such Senior Secured Parties have, independently and
without reliance on the Junior Agent or any Junior Secured Party, and based on
documents and information deemed by them to be appropriate, made their own
credit analysis and decision to enter into the Senior Credit Documents and be
bound by the terms of this Agreement and agrees, on behalf of the Senior
Secured Parties, that such Senior Secured Parties will continue to make their
own credit decisions in taking or not taking any action under the Senior Credit
Documents or this Agreement. The Junior Agent, on behalf of the Junior Secured
Parties, acknowledges that such Junior Secured Parties have, independently and
without reliance on the Senior Agent or any Senior Secured Party, and based on
documents and information deemed by them to be appropriate, made their own
credit analysis and decision to enter into each of the Junior Credit Documents
and be bound by the terms of this Agreement and agrees, on behalf of the Junior
Secured Parties, that such Junior Secured Parties will continue to make their
own credit decisions in taking or not taking any action under the Junior Credit
Documents or this Agreement.

 

Section 7.02. No Warranties or Liability. The Senior Agent,
on behalf of itself and the Senior Secured Parties, acknowledges and agrees
that the Junior Agent and the Junior Secured Parties have made no express or
implied representation or warranty, including with respect to the execution, validity,
legality, completeness, collectibility or enforceability of any of the Junior
Credit Documents, the ownership of any Collateral or the perfection or priority
of any Liens thereon. Except as otherwise provided herein, the Junior Secured
Parties will be entitled to manage and supervise their respective loans and
extensions of credit under the applicable Junior Credit Documents in accordance
with law and as they may otherwise, in their sole discretion, deem
appropriate. The Junior Agent, on behalf of itself and the Junior Secured
Parties, acknowledges and agrees that the Senior Agent and the Senior Secured
Parties have made no express or implied representation or warranty, including
with respect to the execution, validity, legality, completeness, collectibility
or enforceability of any of the Senior Credit Documents, the ownership of any
Collateral or the perfection or priority of any Liens thereon. Except as
otherwise provided herein, the Senior Secured Parties will be entitled to
manage and supervise their respective loans and extensions of credit under the
Senior Credit Documents in accordance with law and as they may otherwise,
in their sole discretion, deem appropriate. Neither the Junior Agent nor any
Junior Secured Party shall have any duty to the Senior Agent or any Senior
Secured Party, and neither the Senior Agent nor any Senior Secured Party shall
have any duty to the Junior Agent or any Junior Secured Party, to act or
refrain from acting in a manner which allows, or results in, the occurrence or
continuance of an event of default or default under any agreements with
Symmetry or any other Grantor (including any Senior Credit Document or Junior
Credit Documents), regardless of any knowledge thereof which they may have
or be charged with.

 

31

 

Section 7.03. No Waiver of Lien Priorities. (a) 
  No right of the Senior Agent or any Senior Secured Party to enforce
any provision of this Agreement or any Senior Credit Document shall at any time
in any way be prejudiced or impaired by any act or failure to act on the part of
Symmetry or any other Grantor or by any act or failure to act by any Agent or
Secured Party, or by any noncompliance by any Person with the terms, provisions
and covenants of this Agreement, any of the Senior Credit Documents or any of
the Junior Credit Documents, regardless of any knowledge thereof that the
Senior Agent or any Senior Secured Party may have or be otherwise charged
with. No right of the Revolving Credit Agent or any Revolving Credit Secured
Party to enforce any provision of this Agreement or any Revolving Credit
Document shall at any time in any way be prejudiced or impaired by any act or
failure to act on the part of Symmetry or any other Grantor or the
Canadian Borrower or any of its Subsidiaries or by any act or failure to act by
any Agent, the Canadian Collateral Agent or Secured Party, or by any
noncompliance by any Person with the terms, provisions and covenants of this
Agreement, any Revolving Credit Document, any Senior Notes Document, any
Canadian Intercompany Note or any of the security documents in connection
therewith, regardless of any knowledge thereof that the Revolving Credit Agent
or any Revolving Credit Secured Party may have or be otherwise charged
with.

 

(b)  Without in any way limiting the generality of paragraph (a) of
this Section (but subject to the rights of Symmetry and the other Grantors
under the Senior Credit Documents and subject to the provisions of Section 5.03(a)),
the Senior Agent or any  Senior Secured
Party may, at any time and from time to time in accordance with the applicable
Senior Credit Documents and applicable law, without the consent of, or notice
to, the Junior Agent or any Junior Secured Party, without incurring any
liabilities or obligations to the Junior Agent or any Junior Secured Party and
without impairing or releasing the Lien priorities and other benefits provided
in this Agreement (even if any right of subrogation or other right or remedy of
the Junior Agent or any Junior Secured Party is affected, impaired or
extinguished thereby) do any one or more of the following:

 

(i) change the manner, place or terms of
payment or change or extend the time of payment of, or Amend the terms of, any
of the Senior Obligations or any Senior Lien on any Collateral or guarantee
thereof or any liability of Symmetry or any other Grantor, or any liability
incurred directly or indirectly in respect thereof (including any increase in
or extension of the Senior Obligations, without any restriction as to the tenor
or terms of any such increase or extension) or otherwise amend, renew,
exchange, extend, modify or supplement in any manner any Senior Liens held by
the Senior Agent or the Senior Secured Parties, the Senior Obligations or any
of the Senior Credit Documents;

 

(ii) sell, exchange, release, surrender,
realize upon, enforce or otherwise deal with in any manner and in any order any
part of the Collateral subject to its Senior Lien or any liability of
Symmetry or any other Grantor to the Senior Agent or the Senior Secured
Parties, or any liability incurred directly or indirectly in respect thereof;

 

32

 

(iii) settle or compromise any Senior
Obligation or any other liability of Symmetry or any other Grantor or any
security therefor or any liability incurred directly or indirectly in respect
thereof and apply any sums by whomsoever paid and however realized to any
liability (including the Senior Obligations) in any manner or order; and

 

(iv) exercise or delay in or refrain
from exercising any right or remedy against Symmetry, any other Grantor or any
other Person or any Collateral, elect any remedy and otherwise deal freely with
Symmetry, any other Grantor or any Collateral subject to its Senior Lien and any
liability incurred directly or indirectly in respect thereof.

 

(c)  Except as otherwise provided herein, the Junior Agent, on
behalf of itself and the Junior Secured Parties, agrees that the Senior Agent
and the Senior Secured Parties shall have no liability to the Junior Agent or
any Junior Senior Secured Party, and the Junior Agent, on behalf of itself and
the Junior Secured Parties, hereby waives any claim against the Senior Agent or
any Senior Secured Party, arising out of any and all actions which the Senior
Agent or any Senior Secured Party may take or permit or omit to take with
respect to:

 

(i) the Senior Credit Documents (other
than this Agreement);

 

(ii) the collection of the Senior
Obligations (other than in violation of the express provisions of this
Agreement); or

 

(iii) the foreclosure upon, or sale,
liquidation or other disposition of, any Collateral subject to the Senior Agent’s
or Senior Secured Parties’ Senior Liens.

 

The Junior
Agent, on behalf of itself and the Junior Secured Parties, agrees that the
Senior Secured Parties and the Senior Agent have no duty to them in respect of
the maintenance or preservation of any Collateral subject to the Senior Agent’s
or Senior Secured Parties’ Senior Liens, the Senior Obligations or otherwise.

 

33

 

(d)  Until the Discharge of Senior Obligations has occurred, the
Junior Agent, on behalf of itself and the Junior Secured Parties, agrees not to
assert and hereby waives, to the fullest extent permitted by law, any right to
demand, request, plead or otherwise assert or otherwise claim the benefit of,
any marshalling, appraisal, valuation or other similar right that may otherwise
be available under applicable law with respect to any Common Collateral subject
to any Senior Lien or any other similar rights a junior secured creditor may have
under applicable law.

 

Section 7.04. Obligations Unconditional. All rights,
interests, agreements and obligations of the Senior Agent and the Senior
Secured Parties and the Junior Agent and the Junior Secured Parties hereunder
(and the rights and obligations of the parties hereto set forth in Sections
5.05 and 5.08 with respect to the Canadian ABL Collateral and Canadian Non-ABL
Collateral) shall remain in full force and effect irrespective of:

 

(a)  any lack of validity or enforceability of any Senior Credit
Document or any Junior Credit Document;

 

(b)  except as otherwise expressly set forth in this Agreement,
any change in the time, manner or place of payment of, or in any other terms
of, the Senior Obligations or the Junior Obligations, or any Amendment,
including any increase in the amount thereof, whether by course of conduct or
otherwise, of the terms of any Senior Credit Document or any Junior Credit
Document;

 

(c)  except as otherwise expressly set forth in this Agreement,
any exchange of any security interest in any Collateral or any other
collateral, or any Amendment, whether in writing or by course of conduct or
otherwise, of all or any of the Senior Obligations or Junior Obligations or any
guarantee thereof;

 

(d)  the commencement of any Insolvency or Liquidation Proceeding
in respect of Symmetry or any other Grantor or the Canadian Borrower;

 

(e)  any other circumstances that otherwise might constitute a
defense available to, or a discharge of, Symmetry or any other Grantor in
respect of the Senior Agent, any Senior Obligations, any Senior Secured Party,
the Junior Agent, any Junior Obligations or any Junior Secured Party in respect
of this Agreement; or

 

(f)  any circumstance that might constitute a defense available
to, or a discharge of, Symmetry, any other Grantor or the Canadian Borrower in
respect of the Revolving Credit Agent, the Canadian Revolving Credit
Obligations, any security interest in the Canadian ABL Assets securing the
Canadian Revolving Credit Obligations, any Revolving Credit Secured Party, the
Senior Notes Agent or the Canadian Intercompany Notes.

 

34

 

ARTICLE VIII

 

Miscellaneous.

 

Section 8.01. Conflicts. In the event of any express
conflict between the provisions of this Agreement and the provisions of the
Senior Credit Documents, the Junior Credit Documents or the Canadian
Intercompany Notes Documents, the provisions of this Agreement shall govern and
control.

 

Section 8.02. Effectiveness; Continuing Nature of this
Agreement; Severability. This Agreement shall become effective when
executed and delivered by the parties hereto. This is a continuing agreement of
lien subordination, and the Senior Secured Parties may continue, at any
time and without notice to the Junior Agent or any Junior Secured Party, to
extend credit and other financial accommodations and lend monies to or for the
benefit of Symmetry or any Grantor constituting Senior Obligations in reliance
hereon. The Junior Agent, on behalf of itself and the Junior Secured Parties,
hereby waives any right it or any of them may have under applicable law to
revoke this Agreement or any of the provisions hereof. The terms of this
Agreement shall survive, and shall continue in full force and effect, in any
Insolvency or Liquidation Proceeding. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall not invalidate the
remaining provisions hereof, and any such prohibition or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction. All references to Symmetry or any other Grantor shall
include Symmetry or such Grantor as debtor and debtor-in-possession and any
receiver or trustee for Symmetry or any other Grantor (as the case may be)
in any Insolvency or Liquidation Proceeding.

 

Section 8.03. Amendments; Waivers. No Amendment of any of
the provisions of this Agreement shall be effective unless the same shall be in
writing and signed on behalf of each party hereto or its authorized agent and
each waiver, if any, shall be a waiver only with respect to the specific matter
involved and shall in no way impair the rights of the parties making such
waiver or the obligations of the other parties to such party in any other
respect or at any other time. Notwithstanding the foregoing, neither Symmetry
nor any other Grantor shall not have any right to consent to or approve any
Amendment of any provision of this Agreement (and its signature thereto shall
not be required) except to the extent its rights or obligations are affected; provided
that Symmetry shall be provided with written notice of all Amendments of any
provision of this Agreement.

 

Section 8.04. Information Concerning Financial Condition of
Symmetry and Subsidiaries. Each Agent, on behalf of its Related Secured
Parties, acknowledges that none of the Agents or the Secured Parties shall be
responsible for keeping any other Agent or Secured Party informed of (a) the
financial condition of Symmetry and the Subsidiaries or (b) any other
circumstances bearing upon the risk of nonpayment of the Revolving Credit
Obligations or the Senior Notes Obligations. Neither the Senior Agent nor any
Senior Secured Party shall have any duty to advise the Junior Agent or any
Junior Secured Party of information known to it regarding such condition or any
such circumstances or otherwise. In the event the Senior Agent or any Senior
Secured Party, in its sole discretion, undertakes at any time or from time to
time to provide any such information to the Junior Agent or any Junior Secured
Party, it shall be under no obligation:

 

35

 

(a)  to make, and neither the Senior Agent nor any Senior Lien
Secured Party shall make, any express or implied representation or warranty,
including with respect to the accuracy, completeness, truthfulness or validity
of any such information so provided;

 

(b)  to provide any additional information or to provide any such
information on any subsequent occasion;

 

(c)  to undertake any investigation; or

 

(d)  to disclose any information which such party wishes to
maintain confidential or is otherwise required to maintain confidential.

 

Section 8.05. Subrogation. With respect to the value of any
payments or distributions in cash, property or other assets (a) that the
Junior Agent or any Junior Secured Party pays over to the Senior Agent or any
Senior Secured Party under the terms of this Agreement, the Junior Agent or such
Junior Secured Party shall be subrogated to the rights of the Senior Agent or
such Senior Secured Party or (b) that the Senior Notes Agent or any Senior
Notes Secured Party pays over to the Revolving Credit Agent pursuant to Section 5.08,
the Senior Notes Agent or such Senior Notes Secured Party shall be subrogated
to the rights of the Revolving Credit Agent and the Revolving Credit Secured
Parties; provided that (i) the Junior Agent, on behalf of itself
and the Junior Secured Parties, hereby agrees not to assert or enforce all such
rights of subrogation it may acquire as a result of any payment hereunder
until the Discharge of Senior Obligations has occurred and (ii) the Senior
Notes Agent, on behalf of itself and the Senior Notes Secured Parties, hereby agrees
not to assert or enforce all such rights of subrogation it may acquire as
a result of any payment hereunder until the Discharge of Canadian Revolving
Credit Obligations has occurred. Symmetry and the other Grantors acknowledge
and agree that (A) the value of any payments or distributions in cash,
property or other assets received by the Junior Agent or any Junior Secured
Party that are paid over to the Senior Agent or any Senior Secured Party
pursuant to this Agreement shall not reduce any of the applicable Junior
Obligations and (B) the value of any payments or distributions in cash,
property or other assets received by the Senior Notes Agent or any Senior Notes
Secured Party that are paid over to the Revolving Credit Agent pursuant to Section 5.08
shall not reduce any of the applicable Senior Notes Obligations.

 

Section 8.06. Application of Payments. (a)  All
payments received by the Senior Agent or any Senior Secured Parties may be
applied, reversed and reapplied, in whole or in part, to such part of the
Senior Obligations as shall be provided in the applicable Senior Credit
Documents. The Junior Agent, on behalf of itself and the Junior Secured
Parties, assents to any extension or postponement of the time of payment of the
Senior Obligations or any part thereof and to any other indulgence with
respect thereto, to any substitution, exchange or release of any security which
may at any time secure any part of the Senior Obligations and to the
addition or release of any other Person primarily or secondarily liable
therefor.

 

36

 

(b)  All payments received by the Revolving Credit Agent or any
Revolving Credit Secured Parties may be applied, reversed and reapplied,
in whole or in part, to such part of the Canadian Revolving Credit
Obligations as shall be provided in the applicable Revolving Credit Documents. The
Senior Notes Agent, on behalf of itself and the Senior Notes Secured Parties,
assents to any extension or postponement of the time of payment of the Canadian
Revolving Credit Obligations or any part thereof and to any other
indulgence with respect thereto, to any substitution, exchange or release of
any security which may at any time secure any part of the Canadian
Revolving Credit Obligations and to the addition or release of any other Person
primarily or secondarily liable therefor.

 

Section 8.07. Governing Law; Jurisdiction; Consent to Service
of Process. (a)  This Agreement shall be construed in accordance with
and governed by the laws of the State of New York.

 

(b)  Each party hereto hereby irrevocably and unconditionally
submits, for itself and its property, to the nonexclusive jurisdiction of the
Supreme Court of the State of New York sitting in New York County and of the
United States District Court of the Southern District of New York, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, or for recognition or enforcement of any judgment,
and each of the parties hereto hereby irrevocably and unconditionally agrees
that all claims in respect of any such action or proceeding may be heard
and determined in such New York State or, to the extent permitted by law,
in such Federal court. Each of the parties hereto agrees that a final judgment
in any such action or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on the judgment or in any other manner provided
by law. Nothing in this Agreement shall affect any right that any party hereto may otherwise
have to bring any action or proceeding relating to this Agreement in the courts
of any other jurisdiction.

 

(c)  Each party hereto hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any
suit, action or proceeding arising out of or relating to this Agreement in any
court referred to in paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the
defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

 

(d)  Each party to this Agreement irrevocably consents to service
of process in the manner provided for notices in Section 8.09. Nothing in
this Agreement or any other Loan Document will affect the right of any party to
this Agreement to serve process in any other manner permitted by law.

 

Section 8.08. WAIVER OF JURY TRIAL. EACH PARTY HERETO
HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY

 

37

 

(WHETHER BASED
ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

Section 8.09. Notices. All notices and other communications
provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by
facsimile, addressed to the recipients at their addresses set forth in Schedule I
hereto, or, as to each party, at such other address as may be designated
by such party in a written notice to all of the other parties. All notices and
other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of
receipt.

 

Section 8.10. Further Assurances. The Senior Agent, on
behalf of itself and the Senior Secured Parties, and the Junior Agent, on
behalf of itself and the Junior Secured Parties, and the other parties hereto
agree that each of them shall take such further actions and shall execute and
deliver such additional documents and instruments (in recordable form, if
requested) as the Senior Agent or the Junior Agent may reasonably request
to effectuate the terms of and the Lien priorities contemplated by this
Agreement.

 

Section 8.11. Successors and Assigns. This Agreement shall
be binding upon the Revolving Credit Agent, the Revolving Credit Secured
Parties, the Senior Notes Agent, the Senior Notes Secured Parties, Symmetry,
the US Borrower and the other Subsidiaries party hereto and their respective
successors and assigns.

 

Section 8.12. Specific Performance. Each of the Revolving
Credit Agent and the Senior Notes Agent may demand specific performance of
this Agreement. Each of the Revolving Credit Agent, on behalf of itself and the
Revolving Credit Secured Parties, and the Senior Notes Agent, on behalf of
itself and the Senior Notes Secured Parties, hereby irrevocably waives any
defense based on the adequacy of a remedy at law and any other defense which
might be asserted to bar the remedy of specific performance in any action
brought by the Revolving Credit Agent, the Revolving Credit Secured Parties,
the Senior Notes Agent or the Senior Notes Secured Parties, as the case may be.

 

Section 8.13. Headings. Section headings in this
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose or be given any
substantive effect.

 

Section 8.14. Counterparts. This Agreement may be
executed in counterparts (and by different parties hereto in different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract. Delivery of an executed
counterpart of a signature page of this Agreement or any document or
instrument delivered in connection herewith by facsimile or electronic

 

38

 

imaging means
shall be effective as delivery of a manually executed counterpart of this
Agreement or such other document or instrument, as applicable.

 

Section 8.15. Authorization. By its signature, each Person
executing this Agreement on behalf of a party hereto represents and warrants to
the other parties hereto that it is duly authorized to execute this Agreement.

 

Section 8.16. No Third Party Beneficiaries. This Agreement
and the rights and benefits hereof shall inure to the benefit of each of the
parties hereto and its respective successors and assigns, including each of the
Revolving Credit Secured Parties and the Senior Notes Secured Parties. Nothing
in this Agreement shall impair, as between Symmetry, the other Grantors and the
Canadian Borrower, on the one hand, and the Revolving Credit Agent, the
Revolving Credit Secured Parties, the Senior Notes Agent or the Senior Notes
Secured Parties, on the other hand, the obligations of Symmetry, the other
Grantors and the Canadian Borrower to pay principal, interest, fees and other
amounts as provided in the Revolving Credit Documents or the Senior Notes
Documents, respectively.

 

Section 8.17. Provisions Solely To Define Relative Rights. The
intercreditor provisions of this Agreement are and are intended solely for the
purpose of defining the relative rights of (a) the Revolving Credit Agent
and the Revolving Credit Secured Parties and (b) the Senior Notes Agent
and the Senior Notes Secured Parties. Nothing in this Agreement is intended to
or shall impair the obligations of Symmetry, 
any other Grantor or the Canadian Borrower, which are absolute and
unconditional, to pay the Revolving Credit Obligations or the Senior Notes
Obligations as and when the same shall become due and payable in accordance
with their terms.

 

Section 8.18. Additional Grantors. Pursuant to the
Revolving Credit Documents and the Senior Notes Documents certain Subsidiaries
not party hereto on the date hereof are required to become a party hereto as a “Grantor”.
Upon the execution and delivery by any Subsidiary of an instrument in the form of
Exhibit I hereto, any such Subsidiary shall become a party hereto and a
Grantor hereunder with the same force and effect as if originally named as such
herein. The execution and delivery of any such instrument shall not require the
consent of any other party hereto. The rights and obligations of each party
hereto shall remain in full force and effect notwithstanding the addition of
any new Grantor as a party to this Agreement.

 

[signature page follows]

 

39

 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first written above.

 

	
   

  	
  SYMMETRY HOLDINGS INC.,

  
	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Corrado De Gasperis

  	
   

  
	
   

  	
   

  	
   

  	
    Name: Corrado De Gasperis

  
	
   

  	
   

  	
   

  	
    Title:   Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOVAMERICAN STEEL FINCO INC.,

  
	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Corrado De Gasperis

  	
   

  
	
   

  	
   

  	
   

  	
    Name: Corrado De Gasperis

  
	
   

  	
   

  	
   

  	
    Title:   President and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOVAMERICAN STEEL INC.,

  
	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Corrado De Gasperis

  	
   

  
	
   

  	
   

  	
   

  	
    Name: Corrado De Gasperis

  
	
   

  	
   

  	
   

  	
    Title:   President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NOVAMERICAN STEEL HOLDINGS INC.,

  
	
   

  	
  INTEGRATED STEEL INDUSTRIES, INC.,

  
	
   

  	
  AMERICAN STEEL AND ALUMINUM CORPORATION,

  
	
   

  	
  NOVA TUBE AND STEEL, INC.,

  
	
   

  	
  NOVAMERICAN TUBE HOLDINGS, INC.,

  
	
   

  	
  NOVA TUBE INDIANA, LLC,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Corrado De Gasperis

  	
   

  
	
   

  	
   

  	
   

  	
    Name: Corrado De Gasperis

  
	
   

  	
   

  	
   

  	
    Title:   President and Treasurer

  

 

SYMMETRY HOLDINGS INC.,
NOVAMERICAN STEEL FINCO INC., 
NOVAMERICAN STEEL INC.

LIEN SUBORDINATION AND
INTERCREDITOR AGREEMENT

 

 

	
   

  	
  632422 N.B. LTD,

  
	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Corrado De Gasperis

  	
   

  
	
   

  	
   

  	
   

  	
    Name: Corrado De Gasperis

  
	
   

  	
   

  	
   

  	
    Title:   President

  

 

SYMMETRY HOLDINGS INC.,
NOVAMERICAN STEEL FINCO INC., 
NOVAMERICAN STEEL INC.

LIEN SUBORDINATION AND
INTERCREDITOR AGREEMENT

 

2

 

	
   

  	
  JPMORGAN CHASE BANK, N.A., as

  Revolving Credit Agent,

  
	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Neil R. Boylan

  	
   

  
	
   

  	
   

  	
   

  	
    Name: Neil R. Boylan

  
	
   

  	
   

  	
   

  	
    Title: Managing Director

  

 

SYMMETRY HOLDINGS INC.,
NOVAMERICAN STEEL FINCO INC., 
NOVAMERICAN STEEL INC.

LIEN SUBORDINATION AND INTERCREDITOR
AGREEMENT

 

3

 

	
   

  	
  THE BANK OF NEW YORK, as

  Senior Notes Agent,

  
	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Remo J. Reale

  	
   

  
	
   

  	
   

  	
   

  	
    Name: Remo J. Reale

  
	
   

  	
   

  	
   

  	
    Title: Vice President

  

 

SYMMETRY HOLDINGS INC.,
NOVAMERICAN STEEL FINCO INC., 
NOVAMERICAN STEEL INC.

LIEN SUBORDINATION AND
INTERCREDITOR AGREEMENT

 

4

 

SCHEDULE I

 

Notice
Addresses

 

 

EXHIBIT I to

the Lien Subordination and

Intercreditor Agreement

 

SUPPLEMENT NO.    
dated as of  [                      ],
to the Lien Subordination and Intercreditor Agreement dated as of November 15,
2007 (the “Intercreditor Agreement”), among SYMMETRY HOLDINGS INC. (“Symmetry”),
NOVAMERICAN STEEL FINCO INC. (the “US Borrower”), NOVAMERICAN STEEL INC.,
a Canadian corporation (the “Canadian Borrower”), the other Subsidiaries
of Symmetry identified therein, JPMORGAN CHASE BANK, N.A., as Revolving Credit
Agent, and THE BANK OF NEW YORK, as Senior Notes Agents.

 

Reference is
made to (a) the Credit Agreement dated as of November 15, 2007, among
Symmetry, the US Borrower, the lenders party thereto, JPMorgan Chase Bank,
N.A., as administrative agent, JPMorgan Chase Bank, N.A., Toronto Branch, as
Canadian agent, and CIT Business Credit Canada, Inc., as syndication agent
(as Amended from time to time, the “Revolving Credit Agreement”), and (b) the
Indenture dated as of November 15, 2007, among Symmetry, the US Borrower,
certain other Subsidiaries party thereto and The Bank of New York, as trustee
(as Amended from time to time, the “Senior Notes Indenture”).

 

Section 8.18
of the Intercreditor Agreement provides that additional Subsidiaries may become
party thereto as a “Grantor” thereunder by execution and delivery of an
instrument in the form of this Supplement. Pursuant to the Revolving
Credit Agreement and the Senior Notes Indenture, the undersigned Subsidiary
(the “New Subsidiary”) is required to become a party to the
Intercreditor Agreement as a “Grantor” thereunder.

 

Capitalized
terms used and not otherwise defined herein have the meanings assigned to them
in the Intercreditor Agreement.

 

Accordingly,
the New Subsidiary hereby agrees as follows:

 

SECTION 1.
In accordance with Section 8.18 of the Intercreditor Agreement, the New
Subsidiary by its signature below becomes a party to the Intercreditor
Agreement as a “Grantor” with the same force and effect as if originally named
therein as such, and the New Subsidiary hereby agrees to all the terms and
provisions of the Intercreditor Agreement applicable to it in such capacity
thereunder. Each reference to a “Grantor” in the Intercreditor Agreement shall
be deemed to include the New Subsidiary.

 

SECTION 2.
The New Subsidiary represents and warrants to the Revolving Credit Agent, the
Senior Notes Agent and the Secured Parties that this Supplement has been duly
authorized, executed and delivered by it and constitutes its legal, valid and
binding obligation, enforceable against it in accordance with its terms.

 

 

SECTION 3.
This Supplement shall become effective when the Revolving Credit Agent and the
Senior Notes Agent shall have received a counterpart (or a copy) of this
Supplement that bears the signature of the New Subsidiary. Delivery of an
executed signature page to this Supplement by facsimile or electronic transmission
shall be as effective as delivery of a manually signed counterpart of this
Supplement.

 

SECTION 4.
Except as expressly supplemented hereby, the Intercreditor Agreement shall
remain in full force and effect.

 

SECTION 5.
This Supplement shall be construed in accordance with and governed by the laws
of the State of New York.

 

IN WITNESS
WHEREOF, the New Subsidiary has duly executed this Supplement as of the day and
year first above written.

 

	
   

  	
  [NAME OF NEW SUBSIDIARY],

  
	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
    Name:

  
	
   

  	
   

  	
   

  	
    Title:

  

 

2Exhibit 10.5

 

[EXECUTION COPY]

 

$315,000,000

 

NOVAMERICAN STEEL FINCO INC.

 

11.5% Senior Secured Notes due
2015

 

Purchase Agreement

 

November 14, 2007

 

J.P. Morgan Securities Inc.
   As Representative of the
   several Initial Purchasers listed
   in Schedule 1 hereto

c/o J.P. Morgan Securities Inc.

270 Park Avenue

New York, New York  10017

 

Ladies and Gentlemen:

 

Novamerican
Steel Finco Inc., a Delaware corporation (the “Issuer”), proposes to
issue and sell to the several initial purchasers listed in Schedule 1
hereto (the “Initial Purchasers”), for whom you are acting as
representative (the “Representative”), $315,000,000 principal amount of its
11.5% Senior Secured Notes due 2015 (the “Securities”). The Securities
will be issued pursuant to an Indenture to be dated as of November 15,
2007 (the “Indenture”), among the Issuer, the guarantors  listed in Schedule 2 hereto (the “Guarantors”)
and The Bank of New York, as trustee (in such capacity, the “Trustee”),
and will be guaranteed on a senior secured basis by each of the Guarantors (the
“Guarantees”).

 

The Securities
will be sold to the Initial Purchasers without being registered under the
Securities Act of 1933, as amended (the “Securities Act”), in reliance
upon an exemption therefrom and without the filing of a prospectus with any
Canadian Securities Commission or similar regulator authority under the
securities laws, rules, regulations and written policy statements of any
province in Canada (collectively, the “Canadian Securities Laws”), in
reliance on exemptions from the prospectus requirements of the applicable
Canadian Securities Laws. The Issuer has prepared a preliminary offering
memorandum dated October 29, 2007 (the “U.S. Preliminary Offering
Memorandum”) and a Canadian preliminary offering memorandum of the same
date (the “Canadian Preliminary Offering Memorandum” and, together with
the U.S. Preliminary Offering Memorandum, the “Preliminary Offering
Memorandum”) and will prepare an offering memorandum dated the date hereof
(the “U.S. Offering Memorandum”) and a Canadian offering memorandum of
the same date (the “Canadian Offering Memorandum” and, together with the
U.S. Offering Memorandum, the “Offering Memorandum”) setting forth
information concerning the Issuer and the Securities. Copies of the Preliminary
Offering 

 

 

Memorandum
have been, and copies of the Offering Memorandum will be, delivered by the
Issuer to the Initial Purchasers pursuant to the terms of this Agreement. The
Issuer hereby confirms that it has authorized the use of the Preliminary Offering
Memorandum, the other Time of Sale Information (as defined below) and the
Offering Memorandum in connection with the offering and resale of the
Securities by the Initial Purchasers in the manner contemplated by this
Agreement.

 

At or prior to
the time when sales of the Securities were first made (the “Time of Sale”),
the following information shall have been prepared (collectively, the “Time
of Sale Information”):  the
Preliminary Offering Memorandum, as supplemented and amended by the written
communications listed on Annex A hereto.

 

The Issuer is
a direct wholly-owned subsidiary of Novamerican Steel Holdings Inc., a Delaware
corporation (“Holdings”), which is a direct wholly-owned subsidiary of
Symmetry Holdings Inc., a Delaware corporation and a public company (“Symmetry”).
632421 N.B. Ltd., a New Brunswick corporation (“Can Sub 1”), is a direct
wholly-owned subsidiary of the Issuer. Can Sub 1 will continue as a Canada Business Corporations Act (“CBCA”) corporation
as part of the Transactions (as defined below). 632422 N.B. Ltd., a New
Brunswick corporation (“Can Sub 2”), is a direct wholly-owned subsidiary
of Can Sub 1 and is called “Acquisitionco” in the Preliminary Offering
Memorandum, the Time of Sale Information and the Offering Memorandum as well as
in the Arrangement Agreement (as defined below).

 

On or prior to
the Closing Date (as defined below), the Issuer, the Guarantors and their
respective subsidiaries will complete a series of transactions described
under the heading “Summary ―The Transactions” in the Preliminary Offering
Memorandum (such transactions, the “Transactions”) such that, upon
completion thereof, Novamerican Steel Inc., a Canadian corporation (“NSI”),
will be acquired by the Issuer.

 

As part of
the Transactions, (i) on or prior to November 13, 2007, each of
156499 Canada Inc., 165948 Canada Inc. and Mc Kendwell Investments Inc, in each
case a Canadian corporation, will reduce its stated capital account to
Cdn.$1.00 and immediately thereafter liquidate and wind-up and commence
dissolution, (ii) Acier Metco Inc., a Quebec company, will liquidate and
wind-up into Nova Steel Ltd., a Canadian corporation, (iii) pursuant to
the terms of the Arrangement Agreement dated as of June 21, 2007 (the “Arrangement
Agreement”), by and among Symmetry, Can Sub 2 and NSI, Can Sub 2 will
acquire all of the outstanding common shares of NSI by way of a court-approved
statutory plan of arrangement (the “Plan of Arrangement”) under the CBCA
(the “Acquisition”), (iv) Can Sub 2 will transfer all of the
outstanding common shares of NSI so acquired to Can Sub 1, (v) Can Sub 1
and NSI will be amalgamated under the CBCA to form Novamerican Steel Inc.,
a Canadian corporation (“Amalco 1”), (vi) Amalco 1 will transfer
the U.S. Subsidiary Indebtedness (as such term is defined in the Arrangement
Agreement) and all of the outstanding shares of Integrated Steel Industries
Inc., a Delaware corporation (“ISI”) and, immediately prior to such
transfer, the direct or indirect parent of all other U.S. subsidiaries of NSI,
to the Issuer, (vii) Nova Tube Inc. and Argo Steel Ltd., each of which is
a Québec company, will reduce its stated capital account to Cdn.$1.00 and
immediately thereafter liquidate and wind-up into Amalco 2 and (viii) Amalco
1, Nova Steel Ltd., Cresswell Industries Inc., Nova Steel Processing Centre
Ltd. and Nova Tube Ontario Inc., each of which is a Canadian corporation, will
reduce its stated capital to Cdn.$1.00 

 

2

 

and
immediately thereafter amalgamate under the CBCA to form Novamerican Steel
Inc., a Canadian corporation (“Novamerican Steel”). In addition, (i) Chriscorp
ULC, a Nova Scotia unlimited liability company and previously an indirect
wholly-owned subsidiary of NSI, was liquidated on October 31, 2007, (ii) Annaco
General Partnerhsip, a Delaware general partnership, was liquidated on October 31,
2007, (iii) Hencorp LLC, a Delaware limited liability company and
previously an indirectly wholly-owned subsidiary of NSI, will be liquidated as soon
as practicable after the Closing Date and (iv) certain transitory holding
companies will be formed and subsequently amalgamated with other companies
described above.

 

Further, as part of
the Transactions, (i) Symmetry, the Issuer and Can Sub 1 (the obligations
of which will be assumed by operation of law by Novamerican Steel on the
Closing Date) will enter into the Credit Agreement to be dated as of the
Closing Date (the “Credit Agreement” and, together with the security
documents related thereto, the “Credit Documents”), among Symmetry, the
Issuer, Novamerican Steel, the lenders party thereto, the issuing banks party
thereto, CIT Business Credit Canada Inc., as syndication agent, JPMorgan Chase
Bank, N.A., as administrative agent (the “Administrative Agent”), and
JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian agent, pursuant to which
the Issuer will be able to borrow up to $175,000,000 in senior secured
revolving loans (of which Novamerican Steel will be able to borrow up to
$125,000,000), (ii) the Issuer, the Guarantors and the Trustee will enter
into the Indenture, (iii) the Issuer will issue the Securities pursuant to
the Indenture, (iv) the Issuer and the Guarantors will enter into the
Collateral Agreement to be dated as of the Closing Date (the “Collateral
Agreement”), among the Issuer, the Guarantors and The Bank of New York, as
collateral agent (in such capacity, the “U.S. Collateral Agent”), (v) the
Issuer or the applicable Guarantor will enter into a mortgage or deed of trust
(such mortgages and deeds of trust, the “Mortgages” and, together with
the Collateral Agreement, the “Security Agreements”) in favor of the
U.S. Collateral Agent, for the benefit of the Secured Parties, with respect to
each of the properties listed on Schedule 3(a) hereto
(collectively, the “Mortgaged Properties”), (vi) Can Sub 1 (the
obligations of which will be assumed by operation of law by Novamerican Steel
on the Closing Date) will issue two intercompany demand promissory notes (the “Intercompany
Note”) to the Issuer in exchange for $125,000,000 in cash, (vii) Novamerican
Steel will secure its obligations under the Intercompany Note pursuant to (a) the
Canadian Collateral Agreement to be dated as of the Closing Date (the “Canadian
Collateral Agreement”), among Novamerican Steel, the Issuer and BNY Trust
Company of Canada, as collateral agent (the “Canadian Collateral Agent”
and, together with the U.S. Collateral Agent, the “Collateral Agents”),
and (b) a Quebec deed of hypothec, charging all of Novamerican Steel’s real
(immovable) properties listed on Schedule 3(c) hereto located in the
Province of Quebec and all of its personal (movable) property, to be dated as
of the Closing Date (the “Quebec Hypothec”), among Novamerican Steel and
the Canadian Collateral Agent, as fondé de pouvoir,
for the benefit of the Issuer and its successors and assigns; and (c) a
debenture granted by Novamerican Steel in favour of the Canadian Collateral
Agent, for the benefit of the Issuer and its successors and assigns (the “Ontario
Mortgage” and, together with the Canadian Collateral Agreement and the
Quebec Hypothec, the “Canadian Security Agreements”; the Ontario
Mortgage and the hypothec created under the Quebec Hypothec on the property
listed on Schedule 3(c) hereto located in the Province of Quebec are
collectively referred to as the “Canadian Mortgages”) with respect to
the property listed on Schedule 3(c) hereto located in the Province
of Ontario (this property, together with the property listed on Schedule 3(c) hereto
located in the Province of Quebec, collectively, the “Canadian Mortgaged
Properties”), (viii) the Issuer, Novamerican Steel and the Guarantors 

 

3

 

will enter
into the Intercreditor Agreement to be dated as of the Closing Date (the “Intercreditor
Agreement”), among the Issuer, the Guarantors, Novamerican Steel and
certain other subsidiaries of Symmetry, the U.S. Collateral Agent and the
Administrative Agent and (ix) the obligations of the Issuer and the
Guarantors under the Securities and the Guarantees will be secured by a
first-priority security interest in the first-priority collateral (as described
in the Preliminary Offering Memorandum, the “First-Priority Collateral”),
including the Intercompany Note, and by a second-priority security interest in
the second-priority collateral (as described in the Preliminary Offering
Memorandum, the “Second-Priority Collateral” and, together with the
First-Priority Collateral, the “Collateral”), in each case in favor of
the U.S. Collateral Agent for the benefit of the Trustee, the U.S. Collateral
Agent, each holder of the Securities and their respective successors and
assigns (collectively, the “Secured Parties”), in each case subject only
to liens and encumbrances permitted by the Indenture and the Collateral
Agreement.

 

The
representations, warranties and agreements of Novamerican Steel and the
Guarantors listed on Schedule 4 hereto (together with Novamerican
Steel, collectively, the “Joining Parties”) under this Agreement shall
not become effective until the consummation of the Acquisition and execution by
the Issuer, Novamerican Steel and the Guarantors of a Joinder to Purchase
Agreement, the form of which is attached hereto as Exhibit B
(the “Joinder Agreement”), at which time such representations,
warranties and agreements shall become effective as of the date hereof pursuant
to the terms of the Joinder Agreement and each of the Joining Parties shall,
without further action by any person, become a party to this Agreement.

 

Holders of the
Securities (including the Initial Purchasers and their direct and indirect
transferees) will be entitled to the benefits of a Registration Rights
Agreement to be dated the Closing Date and substantially in the form attached
hereto as Exhibit A (the “Registration Rights Agreement”), pursuant
to which the Issuer and the Guarantors will agree to file one or more
registration statements with the United States Securities and Exchange
Commission (the “Commission”) providing for the registration under the
Securities Act of the Securities or the Exchange Securities referred to (and as
defined) in the Registration Rights Agreement (the “Exchange Securities”).

 

This
Agreement, the Indenture (including each Guarantee set forth therein), the
Securities, the Exchange Securities, the Joinder Agreement, the Security
Agreements, the Intercreditor Agreement and the Registration Rights Agreement
are collectively referred to herein as the “Note Documents”, and,
together with the Arrangement Agreement, the Intercompany Note, the Canadian
Security Agreements and the Credit Documents, are collectively referred to
herein as the “Transaction Documents”.

 

As used in this Agreement, the term “Post
Transaction Subsidiaries” means the subsidiaries of Symmetry after giving
effect to the Transactions (including the Issuer), which subsidiaries are
listed on Schedule 5(c)(2) hereto.

 

The Issuer
hereby confirms its agreement with the several Initial Purchasers concerning
the purchase and resale of the Securities, as follows:

 

1.                                       Purchase
and Resale of the Securities. (a)  The Issuer agrees to issue and sell
the Securities to the several Initial Purchasers as provided in this Agreement,
and each Initial 

 

4

 

Purchaser, on the basis of the
representations, warranties and agreements set forth herein and subject to the
conditions set forth herein, agrees, severally and not jointly, to purchase
from the Issuer the respective principal amount of Securities set forth
opposite such Initial Purchaser’s name in Schedule 1 hereto at a
price equal to 97.0% of the principal amount thereof plus accrued interest, if
any, from November 15, 2007 to the Closing Date. The Issuer will not be
obligated to deliver any of the Securities except upon payment for all the
Securities to be purchased as provided herein.

 

(b)                                 The
Issuer understands that the Initial Purchasers intend to offer the Securities
for resale on the terms set forth in the Time of Sale Information. Each Initial
Purchaser, severally and not jointly, represents, warrants and agrees that:

 

(i)                                     it is a qualified
institutional buyer within the meaning of Rule 144A under the Securities
Act (a “QIB”) and an accredited investor within the meaning of Rule 501(a) under
the Securities Act;

 

(ii)                                  it has not solicited
offers for, or offered or sold, and will not solicit offers for, or offer or
sell, the Securities by means of any form of general solicitation or
general advertising within the meaning of Rule 502(c) of Regulation D
under the Securities Act (“Regulation D”) or in any manner involving a
public offering within the meaning of Section 4(2) of the Securities
Act; and

 

(iii)                               it has not solicited
offers for, or offered or sold, and will not solicit offers for, or offer or
sell, the Securities as part of their initial offering except:

 

(A)                              within the United States
to persons whom it reasonably believes to be QIBs in transactions pursuant to Rule 144A
under the Securities Act (“Rule 144A”) and, in connection with each
such sale, it has taken or will take reasonable steps to ensure that the
purchaser of the Securities is aware that such sale is being made in reliance
on Rule 144A; or

 

(B)                                in accordance with the
restrictions set forth in Annex C hereto.

 

(c)                                  Each
Initial Purchaser covenants that it will use its reasonable best efforts in
order to not sell Securities to FMR Corp. (which carries on business as
Fidelity Investments) or any trust, fund, or entity that is affiliated with FMR
Corp.

 

(d)                                 Each
Initial Purchaser acknowledges and agrees that the Issuer and, for purposes of
the opinions to be delivered to the Initial Purchasers pursuant to Sections 6(f) and
6(g), counsel for the Issuer and counsel for the Initial Purchasers,
respectively, may rely upon the accuracy of the representations and
warranties of the Initial Purchasers, and compliance by the Initial Purchasers
with their agreements, contained in paragraph (b) above (including Annex C
hereto), and each Initial Purchaser hereby consents to such reliance.

 

(e)                                  The
Issuer acknowledges and agrees that the Initial Purchasers may offer and
sell Securities to or through any affiliate of an Initial Purchaser and that
any such affiliate may offer and sell Securities purchased by it to or
through any Initial Purchaser.

 

5

 

(f)                                    Each
of the Issuer, Novamerican Steel and the Guarantors acknowledge and agree that
the Initial Purchasers are acting solely in the capacity of an arm’s length
contractual counterparty to the Issuer, Novamerican Steel and the Guarantors
with respect to the offering of Securities contemplated hereby (including in
connection with determining the terms of the offering) and not as financial
advisors or fiduciaries to, or agents of, the Issuer, Novamerican Steel, NSI,
the Guarantors or any other person. Additionally, neither the Representative
nor any other Initial Purchaser is advising the Issuer, Novamerican Steel, NSI,
the Guarantors or any other person as to any legal, tax, investment, accounting
or regulatory matters in any jurisdiction. The Issuer, Novamerican Steel, NSI
and the Guarantors shall consult with their own advisors concerning such
matters and shall be responsible for making their own independent investigation
and appraisal of the transactions contemplated hereby, and neither the Representative
nor any other Initial Purchaser shall have any responsibility or liability to
the Issuer, Novamerican Steel, NSI or the Guarantors with respect thereto. Any
review by the Representative or any Initial Purchaser of the Issuer,
Novamerican Steel, NSI, the Guarantors and the transactions contemplated
hereby, with respect to such transactions or other matters relating to such
transactions, will be performed solely for the benefit of the Representative or
such Initial Purchaser, as the case may be, and shall not be on behalf of
the Issuer, Novamerican Steel, NSI, the Guarantors or any other person.

 

2.                                       Payment
and Delivery. (a)  Payment for and delivery of the Securities will be
made at the offices of Cravath, Swaine & Moore LLP, 825 Eighth Avenue,
New York, NY 10019, at 10:00 A.M., New York City time, on November 15,
2007, or at such other time or place on the same or such other date, not later
than the fifth business day thereafter, as the Representative and the Issuer may agree
upon in writing. The time and date of such payment and delivery is referred to
herein as the “Closing Date”.

 

(b)                                 Payment
for the Securities shall be made by wire transfer in immediately available
funds to the account(s) specified by the Issuer to the Representative against
delivery to the nominee of The Depository Trust Company, for the account of the
Initial Purchasers, of one or more global notes representing the Securities
(collectively, the “Global Note”), with any transfer taxes payable in
connection with the sale of the Securities duly paid by the Issuer. The Global
Note will be made available for inspection by the Representative not later than
9:00 A.M., New York City time, on the Closing Date.

 

3.                                       Representations
and Warranties of the Issuer, Novamerican Steel and the Guarantors. The
Issuer, Novamerican Steel and the Guarantors jointly and severally represent
and warrant to each Initial Purchaser as of the date hereof  and as of the Closing Date that:

 

(a)                                  Preliminary Offering Memorandum, Time of Sale
Information and Offering Memorandum. The Preliminary Offering
Memorandum, as of its date, did not, the Time of Sale Information, at the Time
of Sale, did not, and, at the Closing Date will not, and the Offering
Memorandum, as of the date hereof and as of the Closing Date, will not, contain
any untrue statement of a material fact or omit 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; provided that
the Issuer, Novamerican Steel and the Guarantors make no representation or
warranty with respect to any statements or omissions made in the Preliminary
Offering Memorandum, the Time of Sale Information or the Offering Memorandum in
reliance 

 

6

 

upon and in conformity with
information relating to any Initial Purchaser furnished to the Issuer in
writing by such Initial Purchaser through the Representative expressly for use
therein.

 

(b)                                 Additional Written Communications. The
Issuer, NSI and the Guarantors (including their respective agents and
representatives, other than the Initial Purchasers in their capacity as such)
have not prepared, made, used, authorized, approved or referred to and will not
prepare, make, use, authorize, approve or refer to any written communication
that constitutes an offer to sell or solicitation of an offer to buy the
Securities (each such communication by the Issuer, NSI or the Guarantors, or
their respective agents and representatives (other than a communication
referred to in clauses (i), (ii) and (iii) below) an “Issuer
Written Communication”) other than (i) the Preliminary Offering
Memorandum, (ii) the Offering Memorandum, (iii) the documents listed
on Annex A hereto, including a term sheet substantially in the form of
Annex B hereto, which constitute part of the Time of Sale
Information, and (iv) any electronic road show or other written
communications, in each case used in accordance with Section 4(c). Each
such Issuer Written Communication, when taken together with the Time of Sale
Information, did not, and at the Closing Date will not, contain any untrue
statement of a material fact or omit 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; provided that the Issuer, Novamerican
Steel and the Guarantors make no representation and warranty with respect to
any statements or omissions made in each such Issuer Written Communication in
reliance upon and in conformity with information relating to any Initial
Purchaser furnished to the Issuer in writing by such Initial Purchaser through
the Representative expressly for use in any Issuer Written Communication.

 

(c)                                  Financial Statements. (i) The
financial statements of NSI and its subsidiaries and the related notes thereto
included in each of the Time of Sale Information and the Offering Memorandum
present fairly the financial position of NSI and its subsidiaries as of the
dates indicated and the results of their operations and the changes in their
cash flows for the periods specified and (ii) the financial statements of
Symmetry and its subsidiaries and the related notes thereto included in each of
the Time of Sale Information and the Offering Memorandum present fairly the
financial position of Symmetry and its subsidiaries as of the dates indicated
and the results of their operations and the changes in their cash flows for the
periods specified; such financial statements have been prepared in conformity
with generally accepted accounting principles applied on a consistent basis
throughout the periods covered thereby; the other financial information
included in each of the Time of Sale Information and the Offering Memorandum
has been derived from the accounting records of (x) NSI and its
subsidiaries or (y) Symmetry and its subsidiaries, as the case may be,
and presents fairly the information shown thereby; and the pro  forma
financial information and the related notes thereto included in each of the
Time of Sale Information and the Offering Memorandum has been prepared in
accordance with the rules and guidance of the Commission with respect to pro
forma financial information, and the assumptions underlying such pro
forma financial information have been made in good faith and on a basis
that the Issuer, Novamerican Steel and the Guarantors believe to be reasonable
in all material respects and are set forth in each of the Time of Sale
Information and the Offering Memorandum.

 

(d)                                 No Material Adverse Change. (i) 
Since the date of the most recent financial statements of NSI and its
subsidiaries included in each of the Time of Sale Information and the 

 

7

 

Offering Memorandum, except as
contemplated in the Time of Sale Information and the Offering Memorandum: (A) there
has not been any material change in the capital stock of NSI or any of its
subsidiaries, any material increase in the consolidated long term debt of NSI
and its subsidiaries or any dividend or distribution of any kind declared, set
aside for payment, paid or made by NSI on any class of capital stock, or
any material adverse change, or any development involving a prospective
material adverse change, in or affecting the business, properties, management,
financial position, results of operations or prospects of NSI and its
subsidiaries, taken as a whole; (B) neither NSI nor any of its
subsidiaries has entered into any transaction or agreement that is material to
NSI and its subsidiaries, taken as a whole, or incurred any liability or
obligation, direct or contingent, that is material to NSI and its subsidiaries,
taken as a whole; and (C) neither NSI nor any of its subsidiaries has
sustained any material loss or material interference with its business from
fire, explosion, flood or other calamity, whether or not covered by insurance,
or from any labor disturbance or dispute or any action, order or decree of any
court or arbitrator or governmental or regulatory authority.

 

(ii)                                  Since the date of the
most recent financial statements of Symmetry and its subsidiaries included in
each of the Time of Sale Information and the Offering Memorandum, except as
contemplated in the Time of Sale Information and the Offering Memorandum
(including payments to be made to Symmetry stockholders in respect of the
conversion of shares of Symmetry common stock into cash): (A) there has
not been any material change in the capital stock or material increase in
long-term debt of Symmetry or any of its subsidiaries or any dividend or
distribution of any kind declared, set aside for payment, paid or made by the
Symmetry or any of its subsidiaries on any class of capital stock, or any
material adverse change, or any development involving a prospective material
adverse change, in or affecting the business, properties, management, financial
position, results of operations or prospects of Symmetry and its subsidiaries,
taken as a whole; (B) neither Symmetry nor any of its subsidiaries has
entered into any transaction or agreement that is material to Symmetry and its
subsidiaries, taken as a whole, or incurred any liability or obligation, direct
or contingent, that is material to Symmetry and its subsidiaries, taken as a
whole; and (C) neither Symmetry nor any of its subsidiaries has sustained
any material loss or material interference with its business from fire,
explosion, flood or other calamity, whether or not covered by insurance, or
from any labor disturbance or dispute or any action, order or decree of any
court or arbitrator or governmental or regulatory authority.

 

(e)                                  Organization and Good Standing. Symmetry
and each of the Post Transaction Subsidiaries have been (or will be as of the
Closing Date, in the case of Post Transaction Subsidiaries that will be
organized as part of the Transactions) duly organized and are (or will be
as of the Closing Date, in the case of Post Transaction Subsidiaries that will
be organized as part of the Transactions) validly existing and in good
standing under the laws of their respective jurisdictions of organization, are
(or will be as of the Closing Date, in the case of Post Transaction
Subsidiaries that will be organized as part of the Transactions) duly
qualified to do business and are (or will be as of the Closing Date, in the
case of Post Transaction Subsidiaries that will be organized as part of
the Transactions) in good standing in each jurisdiction in which their
respective ownership or lease of property or the conduct of their respective
businesses requires such qualification, and have (or will have as of the
Closing Date, in the case of Post Transaction Subsidiaries that will be
organized as part of the Transactions) all power and 

 

8

 

authority necessary to own or
hold their respective properties and to conduct the businesses in which they
are engaged, except where the failure to be so qualified, in good standing or
have such power or authority would not, individually or in the aggregate, have
a material adverse effect on the business, properties, management, financial position,
results of operations or prospects of Symmetry and the Post Transaction
Subsidiaries, taken as a whole, or on the performance by the Issuer and the
Guarantors of their obligations under the Securities and the Guarantees or the
performance by Novamerican Steel of its obligations under the Intercompany Note
(a “Material Adverse Effect”). In addition, immediately prior to the
commencement of the Transactions, (i) NSI did not own or control, directly
or indirectly, any corporation, association or other entity other than the
subsidiaries listed Schedule 5(a) hereto, (ii) the Issuer did
not own or control, directly or indirectly, any corporation, association or
other entity other than the subsidiaries listed in Schedule 5(b) hereto,
(iii) Symmetry did not own or control, directly or indirectly, any
corporation, association or other entity other than the subsidiaries listed in Schedule 5(c)(1)
hereto. Further, immediately following the consummation of the Transactions,
Symmetry will not own or control, directly or indirectly, any corporation,
association or other entity other than the subsidiaries listed in Schedule 5(c)(2)
hereto.

 

(f)                                    Capitalization. As of September 30,
2007, on a pro forma basis after giving effect to the consummation of
the Transactions, Symmetry and the Post Transaction Subsidiaries, on a
consolidated basis, would have had an authorized capitalization as set forth in
each of the Time of Sale Information and the Offering Memorandum under the
heading “Capitalization”. Immediately following consummation of the
Transactions, all the outstanding shares of capital stock or other equity
interests of each of the Post Transaction Subsidiaries will have been duly and
validly authorized and issued, will be fully paid and non-assessable and will
be owned directly or indirectly by Symmetry, free and clear of any lien,
charge, encumbrance, security interest, restriction on voting or transfer or
any other claim of any third party (excluding (i) any restrictions on the
transfer of shares of capital stock or other equity interests in the
organizational documents of 3217928 Nova Scotia Company, 3217930 Nova Scotia
Company, 3218088 Nova Scotia Company and 4421591 (as defined below) or (ii) any
restrictions or limitations set forth in the organizational documents or
related joint venture agreements of Delta Tube Inc., a Québec company (“Delta
Tube”) or Tubes Delta, Société en Commandite, a Québec limited partnership
(“Tubes Delta”).

 

(g)                                 Due Authorization. The Issuer, Novamerican
Steel and each of the Guarantors has (or will have as of the Closing Date, in
the case of Novamerican Steel and the Guarantors that will be organized, or
acquired, directly or indirectly, by Symmetry, as part of the
Transactions) full right, power and authority to execute and deliver this
Agreement and each other Transaction Document to which it is, or will be, a
party, as the case may be, and to perform their respective
obligations hereunder and thereunder; and all action required to be taken for
the due and proper authorization, execution and delivery of each of the
Transaction Documents and the consummation of the transactions contemplated
thereby, in the case of this Agreement and the Arrangement Agreement, has been
duly and validly taken and, in the case of the other Transaction Documents,
will have been duly and validly taken on or prior to the Closing Date.

 

(h)                                 The Indenture. The Indenture has been (or
will be as of the Closing Date, in the case of Guarantors that will be
organized, or acquired, directly or indirectly, by Symmetry, as part of
the Transactions) duly authorized by the Issuer and each of the Guarantors and,
when 

 

9

 

duly executed and delivered in
accordance with its terms by each of the parties thereto, will constitute a
valid and legally binding agreement of the Issuer and each of the Guarantors
enforceable against the Issuer and each of the Guarantors in accordance with
its terms, except to the extent that (w) enforceability may be
limited by applicable bankruptcy, insolvency, fraudulent conveyance or similar
laws affecting the enforcement of creditors’ rights generally, (x) rights of
acceleration, if applicable, and the availability of equitable remedies may be
limited by equitable principles generally, or (y) rights to indemnification and
contribution may be limited by public policy (collectively, the “Enforceability
Exceptions”); and on the Closing Date, the Indenture will conform in
all material respects to the requirements of the Trust Indenture Act of 1939,
as amended (the “Trust Indenture Act”), and the rules and
regulations of the Commission applicable to an indenture that is qualified
thereunder.

 

(i)                                     The Securities and the Guarantees. The
Securities have been duly authorized by the Issuer and, when duly executed,
authenticated, issued and delivered as provided in the Indenture and paid for
as provided herein, will be duly and validly issued and outstanding and will
constitute valid and legally binding obligations of the Issuer enforceable
against the Issuer in accordance with their terms, subject to the
Enforceability Exceptions, and will be entitled to the benefits of the
Indenture; and the Guarantees have been (or will be as of the Closing Date, in
the case of Guarantors that will be organized, or acquired, directly or
indirectly, by Symmetry, as part of the Transactions) duly authorized by
each of the Guarantors and, when the Securities have been duly executed,
authenticated, issued and delivered as provided in the Indenture and paid for
as provided herein, will be valid and legally binding obligations of each of
the Guarantors, enforceable against each of the Guarantors in accordance with
their terms, subject to the Enforceability Exceptions, and will be entitled to
the benefits of the Indenture.

 

(j)                                     The Exchange Securities. On the Closing
Date, the Exchange Securities (including the related guarantees) will have been
duly authorized by the Issuer and each of the Guarantors and, when duly
executed, authenticated, issued and delivered as contemplated by the Registration
Rights Agreement and as provided in the Indenture, will be duly and validly
issued and outstanding and will constitute valid and legally binding
obligations of the Issuer, as issuer, and each of the Guarantors, as guarantor,
enforceable against the Issuer and each of the Guarantors in accordance with
their terms, subject to the Enforceability Exceptions, and will be entitled to
the benefits of the Indenture.

 

(k)                                  Purchase and Registration Rights Agreements.
This Agreement has been (or will be as of the Closing Date, in the case of
Novamerican Steel and the Guarantors that will be organized, or acquired,
directly or indirectly, by Symmetry, as part of the Transactions) duly
authorized, executed and delivered by the Issuer, Novamerican Steel and each of
the Guarantors, and the Registration Rights Agreement has been (or will be as
of the Closing Date, in the case of Guarantors that will be organized, or
acquired, directly or indirectly, by Symmetry, as part of the
Transactions) duly authorized by the Issuer and each of the Guarantors and on
the Closing Date will be duly executed and delivered by the Issuer and each of
the Guarantors and, when duly executed and delivered in accordance with its
terms by each of the parties thereto, will constitute a valid and legally
binding agreement of the Issuer and each of the Guarantors enforceable against
the Issuer and each of the Guarantors in accordance with its terms, subject to
the Enforceability Exceptions.

 

10

 

(l)                                     Joinder Agreement. The Joinder Agreement
has been (or will be as of the Closing Date, in the case of Novamerican Steel
and Guarantors that will be organized, or acquired, directly or indirectly, by
Symmetry, as part of the Transactions) duly authorized by the Issuer,
Novamerican Steel and each of the Guarantors and, when duly executed and
delivered in accordance with its terms by each of the parties thereto, will
constitute a valid and legally binding agreement of the Issuer, Novamerican
Steel and each of the Guarantors enforceable against the Issuer, Novamerican
Steel and each of the Guarantors in accordance with its terms, subject to the
Enforceability Exceptions.

 

(m)                               Security Agreements and the Intercreditor Agreement.
Each of the Security Agreements has been (or will be as of the Closing Date, in
the case of Guarantors that will be organized, or acquired, directly or
indirectly, by Symmetry, as part of the Transactions) duly authorized by
each of the Issuer and the Guarantors (to the extent it is a party thereto)
and, on the Closing Date, the Collateral Agreement will be duly executed and
delivered by each of the Issuer and the Guarantors and, when duly executed and
delivered in accordance with its terms by each of the parties thereto, will
constitute a valid and legally binding agreement of each of the Issuer and the
Guarantors in accordance with its terms, subject to the Enforceability
Exceptions; and the Intercreditor Agreement has been (or will be as of the
Closing Date, in the case of Guarantors that will be organized, or acquired,
directly or indirectly, by Symmetry, as part of the Transactions) duly
authorized by the Issuer, Novamerican and the Guarantors and on the Closing
Date will be duly executed and delivered by the Issuer, Novamerican and the Guarantors
and, when duly executed and delivered in accordance with its terms by each of
the parties thereto, will constitute a valid and legally binding agreement of
each of the Issuer and the Guarantors in accordance with its terms, subject to
the Enforceability Exceptions.

 

(n)                                 Transaction Documents. Each of the
Intercompany Note, the Canadian Security Agreements and the Credit Documents
has been (or will be as of the Closing Date, in the case of Novamerican Steel
and the Guarantors that will be organized, or acquired, directly or indirectly,
by Symmetry, as part of the Transactions) duly authorized by each of the
Issuer, Novamerican Steel and the Guarantors (to the extent it is a party
thereto) and on the Closing Date will be duly executed and delivered by each of
the Issuer, Novamerican Steel and the Guarantors (to the extent it is a party
thereto) and, when duly executed and delivered in accordance with its terms by
each of the parties thereto, will constitute a valid and legally binding
agreement of each of the Issuer, Novamerican Steel and the Guarantors (to the
extent it is a party thereto) enforceable against each of the Issuer,
Novamerican Steel and the Guarantors (to the extent it is a party thereto) in
accordance with its terms, subject to the Enforceability Exceptions.

 

(o)                                 Descriptions of the Transaction Documents.
Each Transaction Document conforms in all material respects to the description
thereof contained in each of the Time of Sale Information and the Offering
Memorandum.

 

(p)                                 No Violation or Default. Neither Symmetry
nor any of the Post Transaction Subsidiaries is: (i) in violation of its
charter or by-laws or similar organizational documents; (ii) in default,
and no event has occurred that, with notice or lapse of time or both, would
constitute such a default, in the due performance or observance of any term,
covenant or condition contained in any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which Symmetry or any of the Post
Transaction Subsidiaries is a party or by 

 

11

 

which Symmetry or any of the
Post Transaction Subsidiaries is bound or to which any of the property or
assets of Symmetry or any of the Post Transaction Subsidiaries is subject; or (iii) in
violation of any law or statute or any judgment, order, rule or regulation
of any court or arbitrator or governmental or regulatory authority, except, in
the case of clauses (ii) and (iii) above, for any such default or
violation that would not, individually or in the aggregate, have a Material
Adverse Effect.

 

(q)                                 No Conflicts. The execution, delivery and
performance by each of the Issuer, Novamerican Steel and the Guarantors of each
of the Transaction Documents to which it is a party, the issuance and sale of
the Securities (including the Guarantees) and compliance by the Issuer,
Novamerican Steel and the Guarantors with the terms thereof and the
consummation of the transactions contemplated by the Transaction Documents will
not (i) conflict with or result in a breach or violation of any of the
terms or provisions of, or constitute a default under, or result in the
creation or imposition of any lien, charge or encumbrance upon any property or
assets of Symmetry or any of the Post Transaction Subsidiaries pursuant to, any
indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which Symmetry or any of the Post Transaction Subsidiaries is a
party or by which Symmetry or any of the Post Transaction Subsidiaries is bound
or to which any of the property or assets of Symmetry or any of the Post
Transaction Subsidiaries is subject, (ii) result in any violation of the
provisions of the charter or by-laws or similar organizational documents of
Symmetry or any of the Post Transaction Subsidiaries or (iii) result in
the violation of any law or statute or any judgment, order, rule or
regulation of any court or arbitrator or governmental or regulatory authority,
except, in the case of clauses (i) and (iii) above, for any such
conflict, breach, violation or default that would not, individually or in the
aggregate, have a Material Adverse Effect.

 

(r)                                    No Consents Required. No consent,
approval, authorization, order, registration or qualification of or with any
court or arbitrator or governmental or regulatory authority is required for the
execution, delivery and performance by each of the Issuer, Novamerican Steel
and the Guarantors of each of the Transaction Documents to which it is a party,
the issuance and sale of the Securities (including the Guarantees) and
compliance by the Issuer, Novamerican Steel and the Guarantors with the terms
thereof and the consummation of the transactions contemplated by the
Transaction Documents, except (i) for such consents, approvals,
authorizations, orders and registrations or qualifications as may be
required (A) under applicable state securities laws in connection with the
purchase and resale of the Securities (including the Guarantees) by the Initial
Purchasers and (B) with respect to the Exchange Securities (including the
related guarantees) under the Securities Act, the Trust Indenture Act and
applicable state securities laws as contemplated by the Registration Rights
Agreement and (ii) to the extent that the failure to obtain a consent,
approval, authorization, order, registration or qualification, in each case
related solely to the consummation of the Acquisition and not to any financing
transactions (including the offering and sale of the Securities) related
thereto, would not, individually or in the aggregate, have a Material Adverse
Effect.

 

(s)                                  Legal Proceedings. Except as described in
each of the Time of Sale Information and the Offering Memorandum, there are no
legal, governmental or regulatory investigations, actions, suits or proceedings
pending to which Symmetry or any of the Post Transaction Subsidiaries is, or to
the best knowledge of each of Symmetry, the Issuer or Holdings, may be a
party or to which any property of Symmetry or any of the Post Transaction
Subsidiaries is, or to

 

12

 

the best knowledge of each of
Symmetry, the Issuer or Holdings, may be subject that, individually or in
the aggregate, if determined adversely to Symmetry or any of the Post
Transaction Subsidiaries, could reasonably be expected to have a Material
Adverse Effect; and no such investigations, actions, suits or proceedings are
to the best knowledge of each of Symmetry, the Issuer or Holdings threatened
or, contemplated by any governmental or regulatory authority or by others.

 

(t)                                    Independent Accountants. Raymond Chabot
Grant Thornton LLP, who have certified certain financial statements of NSI and
its subsidiaries, and Miller, Ellin & Company, LLP, who have certified
certain financial statements of Symmetry, are each independent public
accountants with respect to NSI and its subsidiaries and Symmetry,
respectively, within the applicable rules and regulations adopted by the
Chartered Accountants of Canada (only with respect to Raymond Chabot Grant
Thornton LLP), the Commission and the Public Company Accounting Oversight Board
(United States) and as required by the Securities Act.

 

(u)                                 Title to Real and Personal Property. Except
as described in each of the Time of Sale Information and the Offering
Memorandum, upon consummation of the Transactions, Symmetry and the Post
Transaction Subsidiaries will have good and marketable title in fee simple to,
or have valid rights to lease or otherwise use, all items of real and personal
property that are material to the respective businesses of Symmetry and the
Post Transaction Subsidiaries, in each case free and clear of all liens,
encumbrances, claims and defects and imperfections of title except those that (i) do
not materially interfere with the use made and proposed to be made of such property
by Symmetry and the Post Transaction Subsidiaries, (ii) could not
reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect, (iii) are permitted under the Indenture and the Collateral
Agreement with respect to the Mortgaged Properties, and for which exceptions
are taken in the policies of title insurance delivered in respect of the
Mortgaged Properties or (iv) are permitted under the Indenture and the
Canadian Collateral Agreement with respect to the Canadian Mortgaged
Properties, and for which exceptions are taken in the policies of title
insurance delivered in respect of the Canadian Mortgaged Properties.

 

(v)                                 Title to Intellectual Property. Upon
consummation of the Transactions, Symmetry and the Post Transaction Subsidiaries
will own or possess adequate rights to use all material patents, patent
applications, trademarks, service marks, trade names, trademark registrations,
service mark registrations, copyrights, licenses and know-how (including trade
secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems or procedures) necessary for the conduct of their
respective businesses as described in the Time of Sale Information and the
Offering Memorandum, none of Symmetry, NSI or any of their respective
subsidiaries has received any written notice of infringement of or conflict
with asserted rights of other with respect to any of the foregoing which,
jointly or in the aggregate, if the subject of an unfavorable decision, ruling
or finding could reasonably be expected to have a Material Adverse Effect.

 

(w)                               No Undisclosed Relationships. No
relationship, direct or indirect, exists between or among Symmetry, NSI or any
of their respective subsidiaries, on the one hand, and the directors, officers,
stockholders or other affiliates of Symmetry, NSI or any of their respective
subsidiaries, on the other, that would be required by the Securities Act to be
described in a registration statement to be filed with the Commission and that
is not so described in each of the 

 

13

 

Time of Sale Information and
the Offering Memorandum. As of the Closing Date, no relationship, direct or
indirect, will exist between or among Symmetry or any of the Post Transaction
Subsidiaries, on the one hand, and the directors, officers, stockholders or
other affiliates of Symmetry or any of the Post Transaction Subsidiaries, on
the other, that would be required by the Securities Act to be described in a
registration statement to be filed with the Commission and that is not so
described in each of the Time of Sale Information and the Offering Memorandum.

 

(x)                                   Investment Company Act. None of Symmetry,
NSI or any of their respective subsidiaries is, and after giving effect to the
offering and sale of the Securities and the application of the proceeds thereof
as described in each of the Time of Sale Information and the Offering
Memorandum none of Symmetry or any of the Post Transaction Subsidiaries will
be, an “investment company” or an entity “controlled” by an “investment company”
within the meaning of the Investment Company Act of 1940, as amended, and the rules and
regulations of the Commission thereunder (collectively, the “Investment
Company Act”).

 

(y)                                 Holding Company. Symmetry is not engaged
in any material business or activity other than those associated with being a
public company and the pursuit and consummation of the Transactions (including
the pursuit and consummation of related approvals and financings and the formation
and ownership of subsidiaries) and activities incidental thereto.

 

(z)                                   Taxes. Symmetry, NSI and their respective
subsidiaries have paid all material federal, state, local and foreign taxes and
filed all material tax returns required to be paid or filed by them through the
date hereof; and, except as otherwise disclosed in each of the Time of Sale
Information and the Offering Memorandum, there is no tax deficiency that has
been, or could reasonably be expected to be, asserted against them or any of their
respective properties or assets which could reasonably be expected to have a
Material Adverse Effect.

 

(aa)                            Licenses and Permits. Upon consummation of
the Transactions, Symmetry and the Post Transaction Subsidiaries will possess
all licenses, certificates, permits and other authorizations issued by, and
have made all declarations and filings with, the appropriate federal, state,
local or foreign governmental or regulatory authorities that are necessary for
the ownership or lease of their respective properties or the conduct of their
respective businesses as described in each of the Time of Sale Information and
the Offering Memorandum, except where the failure to possess or make the same
would not, individually or in the aggregate, have a Material Adverse Effect;
and, except as described in each of the Time of Sale Information and the
Offering Memorandum, none of Symmetry, NSI nor any of their respective
subsidiaries has received notice of any revocation or modification of any such
license, certificate, permit or authorization or has any reason to believe that
any such license, certificate, permit or authorization will not be renewed in
the ordinary course.

 

(bb)                          No Labor Disputes. No labor disturbance by
or dispute with employees of Symmetry, NSI and their respective subsidiaries
exists or, to the best knowledge of each of Symmetry, the Issuer and Holdings,
is contemplated or threatened and none of Symmetry, the Issuer or Holdings is
aware of any existing or imminent labor disturbance by the employees of any of
the principal suppliers, contractors or customers of Symmetry, NSI or their
respective subsidiaries, that could reasonably be expected to result in a
Material Adverse Effect.

 

14

 

(cc)                            Compliance With Environmental Laws. (i) Symmetry,
NSI and their respective subsidiaries (x) are in compliance with any and
all applicable federal, state, local and foreign laws, rules, regulations and
orders relating to the protection of human health or safety, the environment,
natural resources, hazardous or toxic substances or wastes, pollutants or
contaminants (collectively, “Environmental Laws”), (y) have
obtained and are in compliance with all permits, licenses, certificates or
other authorizations or approvals required under applicable Environmental Laws
(the “Environmental Permits”) to conduct their respective businesses,
and all such Environmental Permits are in full force and effect, and
(z) have not received notice of any actual or potential liability under or
relating to any Environmental Laws, including for the investigation or
remediation of any disposal or release of hazardous or toxic substances or
wastes, pollutants or contaminants, and Symmetry, Holdings and the Issuer have
no knowledge of any event or condition that would reasonably be expected to
result in any such notice, and (ii) there are no costs or liabilities
associated with Environmental Laws of or relating to them, except in the case
of each of clauses (i) and (ii) above, for any such failure to
comply, or failure to obtain required permits, licenses or approvals, or cost
or liability, as would not, individually or in the aggregate, have a Material
Adverse Effect or except as specifically disclosed in the Time of Sale
Information and the Offering Memorandum; and (iii) except as specifically
disclosed in each of the Time of Sale Information and the Offering Memorandum,
(x) there are no proceedings that are pending, or that are known to be
contemplated, against Symmetry, NSI or any of their respective subsidiaries
under any Environmental Laws in which a governmental entity is also a party,
other than such proceedings regarding which it is reasonably believed no
monetary sanctions or other liability of $100,000 or more will be imposed, (y)
Symmetry, Holdings and the Issuer are not aware of any instances of
non-compliance with Environmental Laws, or liabilities or other obligations
under Environmental Laws or concerning hazardous or toxic substances or wastes,
pollutants or contaminants, that could reasonably be expected to have a
material adverse effect on the earnings or competitive position of Symmetry and
the Post Transaction Subsidiaries, and (z) none of Symmetry, Holdings or the
Issuer anticipates material capital expenditures relating to any Environmental
Laws.

 

(dd)                          Compliance With ERISA. Except where
failure to comply would not reasonably be expected to have a Material Adverse
Effect, (i) each employee benefit plan, within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
for which the Issuer or any member of its “Controlled Group” (defined as any
organization which is a member of a controlled group of corporations within the
meaning of Section 414 of the Internal Revenue Code of 1986, as amended
(the “Code”)) or NSI or any member of its Controlled Group would have
any liability (each, a “Plan”) has been maintained in compliance with
its terms and the requirements of any applicable statutes, orders, rules and
regulations, including but not limited to ERISA and the Code; (ii) no
prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975
of the Code, has occurred with respect to any Plan excluding transactions
effected pursuant to a statutory or administrative exemption; (iii) for
each Plan that is subject to the funding rules of Section 412 of the
Code or Section 302 of ERISA, no “accumulated funding deficiency” as
defined in Section 412 of the Code, whether or not waived, has occurred or
is reasonably expected to occur; (iv) the fair market value of the assets
of each Plan exceeds the present value of all benefits accrued under such Plan
(determined based on those assumptions used to fund such Plan); (v) no “reportable
event” (within the meaning of Section 4043(c) of ERISA) has occurred
for which the 30-day reporting requirement has not been waived; and (vi) none
of the Issuer or any member of its 

 

15

 

Controlled Group or NSI or any
member of its Controlled Group has incurred, nor reasonably expects to incur,
any liability under Title IV of ERISA (other than contributions to the Plan or
premiums to the PBGC, in the ordinary course and without default) in respect of
a Plan (including a “multiemployer plan”, within the meaning of Section 4001(a)(3) of
ERISA).

 

(ee)                            Canadian Benefit and Pension Plans. To the
extent failure to comply with the following representations or warranties could
not reasonably be expected to have a Material Adverse Effect:  (i) the Canadian Pension Plans (as defined
in the Credit Agreement) are duly registered in accordance with any applicable
law which requires registration and no event has occurred that is reasonably
likely to cause the loss of such registered status; (ii) all material
obligations of each Post Transaction Subsidiary organized under the laws of
Canada or any province thereof (the “Canadian Subsidiaries”) (including
fiduciary, funding, investment and administration obligations) required to be
performed in connection with the Canadian Pension Plans and the funding
agreements therefor have been performed in a timely fashion; (iii) there
have been no improper withdrawals of the assets of the Canadian Pension Plans
or the Canadian Benefit Plans (as defined in the Credit Agreement); (iv) there
are no outstanding disputes concerning the assets held under the funding
agreements for the Canadian Pension Plans; (v) each of the Canadian
Pension Plans, which is a defined benefit registered pension plan, is fully
funded both on an ongoing basis and on a solvency basis (using actuarial
methods and assumptions which are consistent with the valuations last filed
with the applicable Governmental Authorities (as defined in the Credit
Agreement) and which are consistent with generally accepted actuarial
principles); (vi) there has been no partial termination of any Canadian
Pension Plan and no facts or circumstances have occurred or existed that could
result in the declaration of a partial termination of any Canadian Pension Plan
under applicable law; (vii) no promises of benefit improvements under the
Canadian Pension Plans or the Canadian Benefit Plans have been made and in any
event no such improvements will result in a solvency deficiency or going
concern unfunded liability in the affected Canadian Pension Plans; (viii) all
contributions or premiums required to be made or paid by the Canadian
Subsidiaries to the Canadian Pension Plans or the Canadian Benefit Plans have
been made or paid in a timely fashion in accordance with the terms of such
plans and applicable law; (ix) all employee contributions to the Canadian
Pension Plans or the Canadian Benefit Plans by way of authorized payroll
deduction or otherwise have been properly withheld or collected by the Canadian
Subsidiaries and fully paid into such plans in a timely manner; (x) the pension
fund under each Canadian Pension Plan is exempt from the payment of any income
tax and there are no taxes, penalties or interest owing in respect of any such
pension fund; and (xi) all material reports and disclosures relating the Canadian
Pension Plans required by such plans and applicable law have been filed or
distributed in a timely manner.

 

(ff)                                Disclosure Controls. Each of Symmetry and
its subsidiaries and NSI and its subsidiaries maintain an effective system of “disclosure
controls and procedures” (as defined in Rule 13a-15(e) of the
Exchange Act) that is designed to ensure that information required to be
disclosed in reports that are filed or submitted under the Exchange Act is
recorded, processed, summarized and reported within the time periods specified
in the Commission’s rules and forms, including controls and procedures
designed to ensure that such information is accumulated and communicated to
management as appropriate to allow timely decisions regarding required disclosure.
Each of Symmetry and its subsidiaries and NSI and its subsidiaries have carried
out 

 

16

 

evaluations of the
effectiveness of their disclosure controls and procedures as required by Rule 13a-15
of the Exchange Act.

 

(gg)                          Accounting Controls. Each of Symmetry and
its subsidiaries and NSI and its subsidiaries maintain systems of “internal
control over financial reporting” (as defined in Rule 13a-15(f) of
the Exchange Act) that comply with the requirements of the Exchange Act and
have been designed by, or under the supervision of, their respective principal
executive and principal financial officers, or persons performing similar
functions, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. Each of Symmetry and
its subsidiaries and NSI and its subsidiaries maintain internal accounting
controls sufficient to provide reasonable assurance that:  (i) transactions are executed in
accordance with management’s general or specific authorizations; (ii) transactions
are recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles and to maintain asset
accountability; (iii) access to assets is permitted only in accordance
with management’s general or specific authorization; and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. Except
as disclosed in each of the Time of Sale Information and the Offering
Memorandum, there are no material weaknesses or significant deficiencies in the
internal controls of Symmetry and its subsidiaries or NSI and its subsidiaries.

 

(hh)                          Insurance. Upon consummation of the
Transactions, Symmetry and the Post Transaction Subsidiaries will have
insurance covering such losses and risks and in such amounts as Symmetry
reasonably believes are prudent and customary in the businesses in which will
be engaged; neither Symmetry, NSI nor any of their respective subsidiaries has
received notice from any insurer or agent of such insurer that capital
improvements or other expenditures are required or necessary to be made in
order to continue any material insurance coverage currently maintained by it;
neither Symmetry, Holdings or the Issuer has any reason to believe that
Symmetry or any of the Post Transaction Subsidiaries will not be able to renew
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 reasonably be expected to have a Material
Adverse Effect, except in any such case, as described in the Time of Sale
Information and the Offering Memorandum.

 

(ii)                                  No Unlawful Payments. Neither Symmetry nor
any of its subsidiaries nor, to the best knowledge of each of Symmetry, the
Issuer and Holdings, any director, officer, agent, employee or other person
associated with or acting on behalf of Symmetry, NSI or any of their respective
subsidiaries has (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expense relating to
political activity; (ii) made any direct or indirect unlawful payment to
any foreign or domestic government official or employee from corporate funds; (iii) violated
or is in violation of any provision of the Foreign Corrupt Practices Act of 1977;
or (iv) made any bribe, rebate, payoff, influence payment, kickback or
other unlawful payment.

 

(jj)                                  Compliance with Money Laundering Laws. The
operations of Symmetry and the Post Transaction Subsidiaries are and have been
conducted at all times in material compliance 

 

17

 

with applicable financial
recordkeeping and reporting requirements of the Currency and Foreign
Transactions Reporting Act of 1970, as amended, the money laundering statutes
of all applicable jurisdictions, the applicable rules and regulations
thereunder and any applicable related or similar rules, regulations or
guidelines, issued, administered or enforced by any governmental agency
(collectively, the “Money Laundering Laws”) and no action, suit or
proceeding by or before any court or governmental agency, authority or body or
any arbitrator involving Symmetry or any of the Post Transaction Subsidiaries
with respect to the Money Laundering Laws is pending or, to the best knowledge
of each of Symmetry, the Issuer and Holdings, threatened.

 

(kk)                            Compliance with OFAC. None of Symmetry or
any of its subsidiaries or, to the knowledge of each of Symmetry, the Issuer
and Holdings, any director, officer, agent, employee or affiliate of Symmetry, NSI
or any of their respective subsidiaries is currently subject to any U.S.
sanctions administered by the Office of Foreign Assets Control of the U.S.
Department of the Treasury (“OFAC”); and the Issuer will not directly or
indirectly use the proceeds of the offering of the Securities hereunder, or
lend, contribute or otherwise make available such proceeds to any subsidiary,
joint venture partner or other person or entity, for the purpose of financing
the activities of any person currently subject to any U.S. sanctions
administered by OFAC.

 

(ll)                                  Solvency. On and immediately after the
Closing Date, each of the Issuer and Novamerican Steel (in each case after
giving effect to the issuance of the Securities and the other transactions
related thereto as described in each of the Time of Sale Information and the
Offering Memorandum) will be Solvent. As used in this paragraph, the term “Solvent”
means, with respect to a particular person on a particular date, that on such
date:  (i) the present fair market
value (or present fair saleable value) of the assets of such person is not less
than the total amount required to pay the liabilities of such person on its
total existing debts and liabilities (including contingent liabilities) as they
become absolute and matured; (ii) such person is able to realize upon its
assets and pay its debts and other liabilities, contingent obligations and
commitments as they mature and become due in the normal course of business; (iii) assuming
consummation of the issuance of the Securities as contemplated by this
Agreement, the Time of Sale Information and the Offering Memorandum, such
person is not incurring debts or liabilities beyond its ability to pay as such
debts and liabilities mature; (iv) such person is not engaged in any
business or transaction, and does not propose to engage in any business or
transaction, for which its property would constitute unreasonably small capital
after giving due consideration to the prevailing practice in the industry in
which such person is engaged; and (v) such person is not a defendant in
any civil action that would reasonably be expected to result in a judgment that
such person is or would become unable to satisfy.

 

(mm)                      No Restrictions on Subsidiaries. Except
for (i) any restrictions on the transfer of shares of capital stock or
other equity interests in the organizational documents of 3217928 Nova Scotia
Company, 3217930 Nova Scotia Company, 3218088 Nova Scotia Company and 4421591
or (ii) restrictions or limitations set forth in the organizational
documents or related joint venture agreements of Delta Tube or Tubes Delta,
upon the consummation of the Transactions, no subsidiary of the Issuer will be
prohibited, directly or indirectly, under any agreement or other instrument to
which it is a party or is subject, from paying any dividends to the Issuer,
from making any other distribution on such subsidiary’s capital stock, from
repaying to the Issuer any 

 

18

 

loans or advances to such
subsidiary from the Issuer or from transferring any of such subsidiary’s
properties or assets to the Issuer or any other subsidiary of the Issuer.

 

(nn)                          No Broker’s Fees. Neither Symmetry nor any
of the Post Transaction Subsidiaries is (or will be as of the Closing Date, in
the case of Post Transaction Subsidiaries that will be organized, or acquired,
directly or indirectly, by Symmetry, as part of the Transactions) a party
to any contract, agreement or understanding with any person (other than this
Agreement) that would give rise to a valid claim against any of them or any
Initial Purchaser for a brokerage commission, finder’s fee or like payment in
connection with the offering and sale of the Securities.

 

(oo)                          Rule 144A Eligibility. On the Closing
Date, the Securities will not be of the same class as securities listed on
a national securities exchange registered under Section 6 of the Exchange
Act or quoted in an automated inter-dealer quotation system; and each of the
Preliminary Offering Memorandum and the Offering Memorandum, as of its
respective date, contains or will contain all the information that, if
requested by a prospective purchaser of the Securities, would be required to be
provided to such prospective purchaser pursuant to Rule 144A(d)(4) under
the Securities Act.

 

(pp)                          No Integration. None of Symmetry, NSI or
any of their respective affiliates (as defined in Rule 501(b) of
Regulation D) has, directly or through any agent, sold, offered for sale,
solicited offers to buy or otherwise negotiated in respect of any security (as
defined in the Securities Act) that is or will be integrated with the sale of
the Securities in a manner that would require registration of the Securities
under the Securities Act.

 

(qq)                          No General Solicitation or Directed Selling Efforts.
None of Symmetry, NSI or any of their respective affiliates or any other person
acting on its or their behalf (other than the Initial Purchasers, as to which
no representation is made) has (i) solicited offers for, or offered or
sold, the Securities by means of any form of general solicitation or
general advertising within the meaning of Rule 502(c) of Regulation D
or in any manner involving a public offering within the meaning of Section 4(2) of
the Securities Act or (ii) engaged in any directed selling efforts with
respect to the Securities within the meaning of Regulation S under the
Securities Act (“Regulation S”), and all such persons have complied with
the offering restrictions requirement of Regulation S.

 

(rr)                                Securities Law Exemptions. Assuming the
accuracy of the representations and warranties of the Initial Purchasers
contained in Section 1(b) (including Annex C hereto) and their
compliance with their agreements set forth therein, it is not necessary, in
connection with the issuance and sale of the Securities to the Initial
Purchasers and the offer, resale and delivery of the Securities by the Initial
Purchasers in the manner contemplated by this Agreement, the Time of Sale
Information and the Offering Memorandum, to register the Securities under the Securities
Act or to qualify the Indenture under the Trust Indenture Act.

 

(ss)                            No Stabilization. None of the Issuer, NSI
or any of the Guarantors has taken, directly or
indirectly, any action designed to or that could reasonably be expected to
cause or result in any stabilization or manipulation of the price of the
Securities.

 

19

 

(tt)                                Margin Rules. Neither the issuance, sale
and delivery of the Securities nor the application of the proceeds thereof by
the Issuer as described in each of the Time of Sale Information and the
Offering Memorandum will violate Regulation T, U or X of the Board of Governors
of the Federal Reserve System or any other regulation of such Board of
Governors.

 

(uu)                          Forward-Looking Statements. No
forward-looking statement (within the meaning of Section 27A of the
Securities Act and Section 21E of the Exchange Act) contained in any of
the Time of Sale Information or the Offering Memorandum has been made or
reaffirmed without a reasonable basis or has been disclosed other than in good
faith.

 

(vv)                          Statistical and Market Data. Nothing has
come to the attention of Symmetry, the Issuer or Holdings that has caused
Symmetry, the Issuer or Holdings to believe that the statistical and
market-related data included in each of the Time of Sale Information and the
Offering Memorandum is not based on or derived from sources that are reliable
and accurate in all material respects.

 

(ww)                      Sarbanes-Oxley Act. There is and has been
no failure on the part of either Symmetry or NSI or any of Symmetry’s or
NSI’s respective directors or officers, in their capacities as such, to comply
in any material respect with any applicable provision of the Sarbanes-Oxley Act
of 2002 and the rules and regulations promulgated in connection therewith,
including Section 402 related to loans and Sections 302 and 906
related to certifications.

 

(xx)                              Creation and Perfection of Security Interest in
Collateral. (i)  When executed and delivered, the Collateral
Agreement will be effective to create in favor of the U.S. Collateral Agent,
for the benefit of the Secured Parties, a valid and enforceable security
interest in the Collateral and (A) when the Collateral constituting
certificated securities (as defined in the Uniform Commercial Code (the “UCC”))
is delivered to the U.S. Collateral Agent thereunder, together with instruments
of transfer duly endorsed in blank, the Collateral Agreement will constitute a
fully perfected lien on, and security interest in, all right, title and
interest of the pledgors thereunder in such Collateral, (1) in the case of
the First-Priority Collateral, prior and superior in right to any other person,
and (2) in the case of the Second-Priority Collateral, junior to the
first-priority security interest of the secured parties under the Credit
Documents, but prior and superior in right to any other person, and (B) when
UCC financing statements in appropriate form are filed in the UCC filing
offices specified in the Perfection Certificate (as defined below), the Collateral
Agreement will constitute a fully perfected lien on, and security interest in,
all right, title and interest of the Issuer and the Guarantors in the remaining
Collateral to the extent perfection can be obtained by filing UCC financing
statements, (1) in the case of the First-Priority Collateral, prior and
superior in right to any other person, and (2) in the case of the
Second-Priority Collateral, junior to the first-priority security interest of
the secured parties under the Credit Documents, but prior and superior in right
to any other person, except, in the case of (A) and (B) above, for
rights secured by liens expressly permitted by the Indenture and the Collateral
Agreement.

 

(ii)                                 Each Mortgage, upon
execution and delivery by the parties thereto, will create in favor of the U.S.
Collateral Agent, for the benefit of the Secured Parties, a legal, valid and
enforceable lien on all the applicable mortgagor’s right, title and interest in
and to the Mortgaged Properties subject thereto and the proceeds thereof, and
when the 

 

20

 

Mortgages have been filed in the jurisdictions specified in Schedule 3(b) hereto,
the Mortgages will constitute a fully perfected lien on all right, title and
interest of the mortgagors in the Mortgaged Properties and the proceeds
thereof, prior and superior in right to any other person (but subject to liens
or other encumbrances for which exceptions are taken in the policies of title
insurance delivered in respect of the Mortgaged Properties and subject to liens
permitted under the Indenture and the Collateral Agreement).

 

(yy)                          Creation and Perfection of Security Interest or
Hypothec in Intercompany Note Collateral. (i)  When executed
and delivered, the Canadian Security Agreements will be effective to create in
favor of the Canadian Collateral Agent, acting for the benefit of the Issuer, a
valid and enforceable security interest or hypothec in the Intercompany Note
Collateral (as defined in the Preliminary Offering Memorandum) and (A) when
the Intercompany Note Collateral constituting certificated securities (as
defined in the Personal Property Security
Act (Ontario) (“PPSA”)) is delivered to the Canadian Collateral
Agent (or the Administrative Agent as its bailee for purposes of perfection),
together with instruments of transfer duly endorsed in blank, the Canadian
Security Agreements will constitute a perfected charge, security interest or
hypothec in, all right, title and interest of Novamerican Steel in such
Intercompany Note Collateral, (1) in the case of Intercompany Note
Collateral constituting ABL Collateral (as defined in the Credit Agreement),
junior to the first-priority security interest or hypothec of the secured
parties under the Credit Documents, but prior and superior in right to any
other person, and (2) in the case of all other Intercompany Note
Collateral, prior and superior in right to any other person, and (B) when
financing statements or applications for registration, in each case in
appropriate form, are filed in the applicable provincal personal property
security registry offices specified in the Perfection Certificate, the Canadian
Security Agreements will constitute a perfected charge, security interest or
hypothec in, all right, title and interest of Novamerican Steel in the
remaining Intercompany Note Collateral to the extent perfection can be obtained
by filing PPSA or other applicable personal property security registry
financing statements, (x) in the case of Intercompany Note Collateral
constituting ABL Collateral (as defined in the Credit Agreement), junior to the
first-priority security interest or hypothec of the secured parties under the
Credit Documents, but prior and superior in right to any other person, and (y)
in the case of all other Intercompany Note Collateral, prior and superior in
right to any other person, in each case, except for rights secured by liens
expressly permitted by the Indenture.

 

(ii)                                 Subject to the
completion of the Ontario Property Transactions (as defined below), each
Canadian Mortgage, upon execution and delivery by the parties thereto, will
create in favor of the Canadian Collateral Agent, acting for the benefit of the
Issuer, a legal, valid and enforceable charge or hypothec on all the applicable
mortgagor’s right, title and interest in and to the Canadian Mortgaged
Properties subject thereto and the proceeds thereof, and when the Canadian
Mortgages have been registered in the jurisdictions specified in Schedule 3(d)
hereto, the Canadian Mortgages will constitute a perfected charge on all right,
title and interest of the mortgagors in the Canadian Mortgaged Properties and
the proceeds thereof, prior and superior in right to any other person (but
subject to liens or other encumbrances for which exceptions are taken in the
policies of title insurance delivered in respect of the Canadian Mortgaged
Properties and subject to the liens permitted under the Indenture and Canadian
Collateral Agreement).

 

21

 

(iii)                               Each Canadian Security
Agreement other than the Canadian Collateral Agreement, when executed and
delivered, will be effective under applicable law to create in favor of the
Canadian Collateral Agent, acting for the benefit of the Issuer, its successors
and assigns, a valid and enforceable security interest in or hypothec on the
Intercompany Note Collateral subject thereto, and, provided that in the case of
deeds of hypothec governed by the laws of Québec, the hypothecs created under
such deeds are registered in the appropriate registries in the Province of
Québec, and, further provided that in the case of mortgages governed by the
laws of Ontario, such mortgages have been registered in the appropriate
registries in the Province of Ontario, will constitute a perfected charge or
hypothec on, and security interest in, all right, title and interest of
Novamerican Steel in the Intercompany Note Collateral subject thereto, (A) in
the case of Intercompany Note Collateral constituting ABL Collateral (as defined
in the Credit Agreement), junior to the first-priority security interest of the
secured parties under the Credit Documents, but prior and superior in right to
any other person, and (B) in the case of all other Intercompany Note
Collateral, prior and superior in right to any other person, in each case,
except for rights secured by liens expressly permitted by the Indenture.

 

4.                                       Further
Agreements of the Issuer and the Guarantors. The Issuer and each of the
Guarantors jointly and severally covenant and agree with each Initial Purchaser
that:

 

(a)                                  Delivery of Copies. The Issuer will
deliver, without charge, to the Initial Purchasers as many copies of the
Preliminary Offering Memorandum, any other Time of Sale Information, any Issuer
Written Communication and the Offering Memorandum (including all amendments and
supplements thereto) as the Representative may reasonably request.

 

(b)                                 Offering Memorandum, Amendments or Supplements.
Before finalizing the Offering Memorandum or making or distributing any
amendment or supplement to any of the Time of Sale Information or the Offering
Memorandum, the Issuer will furnish to the Representative and counsel for the
Initial Purchasers a copy of the proposed Offering Memorandum or such amendment
or supplement for review, and will not distribute any such proposed Offering
Memorandum, amendment or supplement to which the Representative reasonably
objects without unreasonable delay.

 

(c)                                  Additional Written Communications. Before
making, preparing, using, authorizing, approving or referring to any Issuer
Written Communication, the Issuer will furnish to the Representative and
counsel for the Initial Purchasers a copy of such written communication for
review and will not make, prepare, use, authorize, approve or refer to any such
written communication to which the Representative reasonably objects without
unreasonable delay.

 

(d)                                 Notice to the Representative. The Issuer
will advise the Representative promptly, and confirm such advice in
writing:  (i) of the issuance by any
governmental or regulatory authority of any order preventing or suspending the
use of any of the Time of Sale Information, any Issuer Written Communication or
the Offering Memorandum or the initiation or threatening of any proceeding for
that purpose; (ii) of the occurrence of any event at any time prior to the
completion of the initial offering of the Securities as a result of which any
of the Time of Sale Information, any Issuer Written Communication or the
Offering Memorandum as then amended

 

22

 

or supplemented would include
any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances existing when such Time of Sale Information, Issuer Written
Communication or the Offering Memorandum is delivered to a purchaser, not
misleading; and (iii) of the receipt by the Issuer of any notice with
respect to any suspension of the qualification of the Securities for offer and
sale in any jurisdiction or the initiation or threatening of any proceeding for
such purpose; and the Issuer will use its reasonable best efforts to prevent
the issuance of any such order preventing or suspending the use of any of the
Time of Sale Information, any Issuer Written Communication or the Offering
Memorandum or suspending any such qualification of the Securities and, if any
such order is issued, will obtain as soon as possible the withdrawal thereof.

 

(e)                                  Time of Sale Information. If at any time
prior to the Closing Date (i) any event shall occur or condition shall
exist as a result of which any of the Time of Sale Information as then amended
or supplemented would include any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading or
(ii) it is necessary to amend or supplement any of the Time of Sale
Information to comply with law, the Issuer will immediately notify the Initial
Purchasers thereof and forthwith prepare and, subject to paragraph (b) above,
furnish to the Initial Purchasers such amendments or supplements to any of the
Time of Sale Information as may be necessary so that the statements in any
of the Time of Sale Information as so amended or supplemented will not, in
light of the circumstances under which they were made, be misleading or so that
any of the Time of Sale Information will comply with law.

 

(f)                                    Ongoing Compliance of the Offering Memorandum.
If at any time prior to the completion of the initial offering of the
Securities (i) any event shall occur or condition shall exist as a result
of which the Offering Memorandum as then amended or supplemented would include
any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the
circumstances existing when the Offering Memorandum is delivered to a
purchaser, not misleading or (ii) it is necessary to amend or supplement
the Offering Memorandum to comply with law, the Issuer will immediately notify
the Initial Purchasers thereof and forthwith prepare and, subject to paragraph (b) above,
furnish to the Initial Purchasers such amendments or supplements to the
Offering Memorandum as may be necessary so that the statements in the
Offering Memorandum as so amended or supplemented will not, in the light of the
circumstances existing when the Offering Memorandum is delivered to a
purchaser, be misleading or so that the Offering Memorandum will comply with
law; provided, that the Issuer may request a delay of up to twenty-one
days in the requirement to amend or supplement the Offering Memorandum if
proceeding with the proposed amendment or supplement would require the
disclosure of material non-public information concerning the Issuer or Symmetry
and the disclosure of such information might reasonably be expected to
adversely affect a planned transaction by the Issuer or Symmetry which is under
active consideration and, in such event, the Initial Purchasers agree to
suspend offers and sales of the Securities until the Offering Memorandum is so
amended or supplemented by the Issuer.

 

(g)                                 Blue Sky Compliance. The Issuer will use
its reasonable best efforts to qualify the Securities for offer and sale under
the securities or Blue Sky laws of such jurisdictions as the Representative
shall reasonably request and will continue such qualifications in effect so
long as required for the offering and resale of the Securities; provided
that neither the Issuer nor any of

 

23

 

the Guarantors shall be
required to (i) qualify as a foreign corporation or other entity or as a
dealer in securities in any such jurisdiction where it would not otherwise be
required to so qualify, (ii) file any general consent to service of
process in any such jurisdiction or (iii) subject itself to taxation in
any such jurisdiction if it is not otherwise so subject.

 

(h)                                 Clear Market. During the period from the
date hereof through and including the date that is 180 days after the date
hereof, each of the Issuer, Symmetry and Holdings will not (and will not permit
Novamerican Steel or any other Guarantor to), without the prior written consent
of the Representative, offer, sell, contract to sell or otherwise dispose of
any debt securities issued or guaranteed by the Issuer, Novamerican Steel or
any of the Guarantors and having a tenor of more than one year.

 

(i)                                     Use of Proceeds. The Issuer will apply the
net proceeds from the sale of the Securities as described in each of the Time
of Sale Information and the Offering Memorandum under the heading “Use of
proceeds”.

 

(j)                                     Supplying Information. While the
Securities remain outstanding and are “restricted securities” within the
meaning of Rule 144(a)(3) under the Securities Act, the Issuer and
each of the Guarantors will, during any period in which the Issuer is not
subject to and in compliance with Section 13 or 15(d) of the Exchange
Act, furnish to holders of the Securities and prospective purchasers of the
Securities designated by such holders, upon the request of such holders or such
prospective purchasers, the information required to be delivered pursuant to Rule 144A(d)(4) under
the Securities Act.

 

(k)                                  PORTAL and DTC. The Issuer will assist the
Initial Purchasers in arranging for the Securities to be designated Private
Offerings, Resales and Trading through Automated Linkages (“PORTAL”)
Market securities in accordance with the rules and regulations adopted by
the National Association of Securities Dealers, Inc. (the “NASD”)
relating to trading in the PORTAL Market and for the Securities to be eligible
for clearance and settlement through The Depository Trust Company (“DTC”).

 

(l)                                     No Resales by the Issuer. The Issuer will
not, and will use its best efforts to cause its affiliates (as defined in Rule 144
under the Securities Act) not to, resell any of the Securities that have been
acquired by any of them, except for Securities purchased by the Issuer or any
of its affiliates and resold in a transaction registered under the Securities
Act.

 

(m)                               No Integration. Neither the Issuer nor any
of its affiliates (as defined in Rule 501(b) of Regulation D) will,
directly or through any agent, sell, offer for sale, solicit offers to buy or
otherwise negotiate in respect of, any security (as defined in the Securities
Act), that is or will be integrated with the sale of the Securities in a manner
that would require registration of the Securities under the Securities Act.

 

(n)                                 No General Solicitation or Directed Selling Efforts.
None of the Issuer or any of its affiliates or any other person acting on its
or their behalf (other than the Initial Purchasers, as to which no covenant is
given) will (i) solicit offers for, or offer or sell, the Securities by
means of any form of general solicitation or general advertising within
the meaning of Rule 502(c) of Regulation D or in any manner involving
a public offering within the meaning of Section 4(2) of

 

24

 

the Securities Act or (ii) engage
in any directed selling efforts within the meaning of Regulation S, and all
such persons will comply with the offering restrictions requirement of
Regulation S.

 

(o)                                 No Stabilization. Each of the Issuer,
Symmetry and Holdings will not (and will not permit Novamerican Steel or any
other Guarantor to) take, directly or indirectly, any
action designed to or that could reasonably be expected to cause or result in
any stabilization or manipulation of the price of the Securities.

 

(p)                                 Subsequent Sale Dates. Without limiting
the generality of clause (f) above, in the event that, following the
Closing Date, the Initial Purchasers continue to hold an unsold allotment of
the Securities, the Issuer shall, upon the request of the Initial Purchasers at
any time in the period from the Closing Date to December 31, 2008 (which
request shall be made not more than twice in such period), as promptly as
reasonably practicable following each such request, (i) provide to the
Initial Purchasers a complete amended Offering Memorandum, updated to the date
proposed for resale of the Securities in the Initial Purchasers’ request (each
such date, a “Subsequent Sale Date”), which amended Offering Memorandum shall
include all current financial information (including applicable pro forma
information) and such other current disclosure as would be customary for a Rule 144A
disclosure document to be delivered on such Subsequent Sale Date as if pricing
of the Securities had occurred thereon, (ii) provide or cause to be
provided such closing documentation on such Subsequent Sale Date as is herein
contemplated to be delivered on the Closing Date, including, without
limitation, legal opinions, customary “comfort” letters from independent
auditors and closing certificates in substantially the forms contemplated
hereby with only such changes therein as may be necessary or appropriate
to reflect the current financial information and other updated disclosure
included in the amended Offering Memorandum, or other changes in facts and
circumstances between the Closing Date and the applicable Subsequent Sale Date,
(iii) remake the representations and warranties contained herein as of
such Subsequent Sale Date with only such changes therein as may be
necessary or appropriate to reflect the current financial information and other
updated disclosure included in the amended Offering Memorandum, or other
changes in facts and circumstances between the Closing Date and the applicable
Subsequent Sale Date, (iv) reasonably cooperate with the Initial
Purchasers, including, without limitation, participation on conference calls
with the Initial Purchasers and their counsel, in connection with the updating
of the Initial Purchasers’ due diligence investigation to such Subsequent Sale
Date and (v) reasonably cooperate with the Initial Purchasers in
connection with the marketing of the Securities, including, without limitation,
the participation of senior management of the Issuer in one or more meetings
with prospective investors to whom the Initial Purchasers propose to resell the
unsold allotment of Securities then held by them. The Issuer may request a
delay of up to twenty-one days of any Subsequent Sale Date requested by the
Initial Purchasers if proceeding with the proposed resale of the Securities on
that date it would require the disclosure in the amended Offering Memorandum of
material non-public information concerning the Issuer or Symmetry and the
disclosure of such information might reasonably be expected to adversely affect
a planned transaction by the Issuer or Symmetry which was under active
consideration prior to the delivery by the Initial Purchasers of the request.

 

(q)                                 Ontario Property Transactions. Whereas, on
the Closing Date, title to the Canadian Mortgaged Property listed in Schedule 3(c) located
in Stony Creek, Ontario (the “Ontario Property”) will be held in part by
a wholly-owned Subsidiary of Novamerican Steel, 

 

25

 

4421591 Canada Inc., a Canadian
corporation (“4421591”),
it is agreed that, on or before 5:00 pm, Toronto time on the business day
immediately following the Closing Date, Symmetry will complete or cause to be
completed the following registrations 
(the “Ontario Property Transactions”):

 

(i) the registration of a name change application on title to the Ontario Property to change the
registered owner from Nova Steel Processing Centre Ltd. to Novamerican Steel;
and

 

(ii)  the registration of a transfer of title from 4421591 to
Novamerican Steel of all of 4421591’s right, title and interest to the Ontario
Property; and

 

(iii) the registration of the Ontario Mortgage over the 100%
interest of  Novamerican Steel in the
Ontario Property.

 

5.                                       Certain
Agreements of the Initial Purchasers. Each Initial Purchaser hereby
represents and agrees that it has not and will not use, authorize use of, refer
to, or participate in the planning for use of, any written communication that
constitutes an offer to sell or the solicitation of an offer to buy the
Securities other than (i) the Preliminary Offering Memorandum and the
Offering Memorandum, (ii) a written communication that contains no “issuer
information” (as defined in Rule 433(h)(2) under the Securities Act)
that was not included (including through incorporation by reference) in the Preliminary
Offering Memorandum or the Offering Memorandum, (iii) any written
communication listed on Annex A or prepared pursuant to Section 4(c) above
(including any electronic road show), (iv) any written communication
prepared by such Initial Purchaser and approved by the Issuer in advance in
writing or (v) any written communication relating to or that contains the
terms of the Securities and/or other information that was included (including
through incorporation by reference) in the Preliminary Offering Memorandum or
the Offering Memorandum.

 

6.                                       Conditions
of Initial Purchasers’ Obligations. The obligation of each Initial
Purchaser to purchase Securities on the Closing Date as provided herein is
subject to the performance by the Issuer, Novamerican Steel and each of the
Guarantors of their respective covenants and other obligations hereunder and to
the following additional conditions:

 

(a)                                  Representations and Warranties. The
representations and warranties of the Issuer, Novamerican Steel and the
Guarantors contained herein (or in the Joinder Agreement, as the case may be)
shall be true and correct on the date hereof and on and as of the Closing Date;
and the statements of the Issuer, Novamerican Steel and the Guarantors and
their respective officers made in any certificates delivered pursuant to the
Note Documents shall be true and correct on and as of the Closing Date.

 

(b)                                 No Downgrade. Subsequent to the earlier of
(A) the Time of Sale and (B) the execution and delivery of this
Agreement:   (i) no downgrading
shall have occurred in the rating accorded the Securities or any other debt
securities or preferred stock issued or guaranteed by Symmetry or any of the
Post Transaction Subsidiaries by any “nationally recognized statistical rating
organization”, as such term is defined by the Commission for purposes of Rule 436(g)(2) under
the Securities Act; and (ii) no such organization shall have publicly
announced that it has under surveillance or review, or has changed its outlook
with respect to, its rating of the 

 

26

 

Securities or of any other debt
securities or preferred stock issued or guaranteed by Symmetry or any of the
Post Transaction Subsidiaries (other than an announcement with positive
implications of a possible upgrading).

 

(c)                                  No Material Adverse Change. No event or
condition of a type described in Section 3(d) hereof shall have
occurred or shall exist, which event or condition is not described in each of
the Time of Sale Information (excluding any amendment or supplement thereto)
and the Offering Memorandum (excluding any amendment or supplement thereto) the
effect of which in the judgment of the Representative makes it impracticable or
inadvisable to proceed with the offering, sale or delivery of the Securities on
the terms and in the manner contemplated by this Agreement, the Time of Sale
Information and the Offering Memorandum.

 

(d)                                 Officers’ Certificate. The Representative
shall have received on and as of the Closing Date a certificate of an executive
officer of each of the Issuer, Novamerican Steel and the Guarantors who has
specific knowledge of the financial matters of the Issuer, Novamerican Steel
and the Guarantors, as applicable, and is satisfactory to the Representative (i) confirming
that such officer has carefully reviewed the Time of Sale Information and the
Offering Memorandum and, to the best knowledge of such officer, the
representations set forth in Sections 3(a) and 3(b) hereof are true
and correct, (ii) confirming that the other representations and warranties
of the Issuer, Novamerican Steel and the Guarantors in this Agreement (or in
the Joinder Agreement, as the case may be) are true and correct and that
the Issuer and the Guarantors have complied with all agreements and satisfied
all conditions on their part to be performed or satisfied hereunder at or
prior to the Closing Date and (iii) to the effect set forth in paragraphs (b) and
(c) above.

 

(e)                                  Comfort Letters. On the date of this
Agreement and on the Closing Date, each of Raymond Chabot Grant Thornton LLP
and Miller, Ellin & Company, LLP shall have furnished to the
Representative, at the request of NSI and Symmetry, respectively, letters,
dated the respective dates of delivery thereof and addressed to the Initial
Purchasers, in form and substance reasonably satisfactory to the
Representative, containing statements and information of the type customarily
included in accountants’ “comfort letters” to underwriters with respect to the
financial statements and certain financial information contained in each of the
Time of Sale Information and the Offering Memorandum; provided that the
letter delivered on the Closing Date shall use a “cut-off” date no more than
three business days prior to the Closing Date.

 

(f)                                    Opinion and 10b-5 Statement of Counsel for the Issuer.
Kelley Drye & Warren LLP, counsel for the Issuer, shall have furnished
to the Representative, at the request of the Issuer, their written opinion and
10b-5 statement, dated the Closing Date and addressed to the Initial Purchasers,
in form and substance reasonably satisfactory to the Representative, to
the effect set forth in Annex D-1 hereto.

 

(g)                                 Opinion and 10b-5 Statement of Counsel for the
Initial Purchasers. The Representative shall have received on and as
of the Closing Date an opinion and 10b-5 statement of Cravath, Swaine &
Moore LLP, counsel for the Initial Purchasers, with respect to such matters as
the Representative may reasonably request, and such counsel shall have
received such documents and information as they may reasonably request to
enable them to pass upon such matters.

 

27

 

(h)                                 Opinions of Local Counsel. (i) 
Davies Ward Phillips & Vineberg LLP, Canadian counsel for Symmetry,
shall have furnished to the Representative, at the request of Novamerican
Steel, their written opinion, dated the Closing Date and addressed to the
Initial Purchasers, in form and substance reasonably satisfactory to the
Representative, to the effect set forth in Annex D-2 hereto; (ii) Stewart
McKelvey, New Brunswick counsel for Can Sub 1 and Can Sub 2, shall have
furnished to the Representative, at the request of Novamerican Steel, their
written opinion, dated the Closing Date and addressed to the Initial
Purchasers, in form and substance reasonably satisfactory to the
Representative, to the effect set forth in Annex D-2 hereto; and (iii) Nutter,
McClennen & Fish, LLP, Massachusetts counsel for American Steel and
Aluminum Corporation, a Massachusetts corporation, shall have furnished to the
Representative, at the request of Symmetry, their written opinion, dated the
Closing Date and addressed to the Initial Purchasers, in form and
substance reasonably satisfactory to the Representative, to the effect set
forth in Annex D-3 hereto.

 

(i)                                     No Legal Impediment to Issuance. No action
shall have been taken and no statute, rule, regulation or order shall have been
enacted, adopted or issued by any federal, state or foreign governmental or
regulatory authority that would, as of the Closing Date, prevent the issuance
or sale of the Securities or the issuance of the Guarantees; and no injunction
or order of any federal, state or foreign court shall have been issued that
would, as of the Closing Date, prevent the issuance or sale of the Securities
or the issuance of the Guarantees.

 

(j)                                     Good Standing. The Representative shall
have received on and as of the Closing Date satisfactory evidence of the good
standing of Symmetry and the Post Transaction Subsidiaries in their respective
jurisdictions of organization and their good standing in such other
jurisdictions as the Representative may reasonably request, in each case
in writing or any standard form of telecommunication, from the appropriate
governmental authorities of such jurisdictions, except for (i) the Certificate
of Compliance of Novamerican Steel and (ii) the Certificat d’Attestation
for Novamerican Steel’s registration in Quebec, which, in each case, shall be
received on the day immediately following the Closing Date.

 

(k)                                  PORTAL and DTC. The Securities shall have
been approved by the NASD for trading in the PORTAL Market and shall be
eligible for clearance and settlement through DTC.

 

(l)                                     Additional Documents. On or prior to the
Closing Date, the Issuer, Novamerican Steel and the Guarantors shall have furnished
to the Representative such further certificates and documents as the
Representative may reasonably request.

 

(m)                               Transactions. The Transactions shall have
been consummated on the terms and conditions described in the Time of Sale
Information and the Offering Memorandum.

 

(n)                                 Joinder. Each of the Joining Parties shall
have become parties to this Agreement pursuant to the execution and delivery of
the Joinder Agreement.

 

(o)                                 Registration Rights Agreement. The Initial
Purchasers shall have received a counterpart of the Registration Rights
Agreement that shall have been executed and delivered by a duly authorized
officer of the Issuer and each of the Guarantors.

 

28

 

(p)                                 Creation and Perfection of Security Interest in
Collateral. (i)  The Representative and the U.S. Collateral
Agent shall have received from the Issuer and each Guarantor counterparts of
the Collateral Agreement and of the Intercreditor Agreement, duly executed and
delivered on behalf of the Issuer or such Guarantor, as applicable.

 

(ii)                                  All equity interests
in any subsidiary owned by or on behalf of the Issuer or any of the Guarantors
shall have been pledged pursuant to the Collateral Agreement and the U.S.
Collateral Agent shall have received certificates or other instruments
representing all such equity interests, together with undated stock powers or
other instruments of transfer with respect thereto endorsed in blank, in each
case to the extent required by the Indenture.

 

(iii)                               All indebtedness of
Symmetry and the Post Transaction Subsidiaries that is owing to the Issuer or
any Guarantor shall be evidenced by a promissory note and shall have been
pledged pursuant to the Collateral Agreement and the U.S. Collateral Agent
shall have received all such promissory notes, together with instruments of
transfer with respect thereto endorsed in blank, in each case to the extent
required by the Indenture.

 

(iv)                              All documents and
instruments, including UCC financing statements, required by law or reasonably
requested by the Representative or the Collateral Agents to be filed,
registered or recorded to create the liens intended to be created by the
Collateral Agreement and perfect such liens to the extent required by, and with
the priority required by, the Collateral Agreement, shall have been filed,
registered or recorded or delivered to the U.S. Collateral Agent for filing,
registration or recording, in each case to the extent required by the
Indenture.

 

(v)                                 Each of the Issuer and
the Guarantors shall have obtained all material consents and approvals required
to be obtained by it in connection with the execution and delivery of the
Collateral Agreement, the performance of its obligations thereunder and the
granting by it of the liens thereunder.

 

(vi)                              All filing fees, taxes
and other amounts payable in connection with the filings, recordings,
registrations and other actions described in clauses (i) through (vi) above
shall have been paid or payment by the Issuer provided for to the reasonable
satisfaction of the Representative and the U.S. Collateral Agent.

 

(q)                                 Creation and Perfection of Security Interest or
Hypothec in Intercompany Note Collateral. (i)  The
Representative shall have received from the Canadian Collateral Agent and
Novamerican Steel counterparts of the Canadian Security Agreements, duly
executed and delivered by the Canadian Collateral Agent on behalf of the Issuer
or Novamerican Steel, as applicable.

 

(ii)                                  All equity interests
in any subsidiary owned by or on behalf of Novamerican Steel shall have been
pledged pursuant to the Canadian Collateral Agreement and, if certificated, the
Canadian Collateral Agent for the benefit of the Issuer (or the Canadian
Collateral Agent as its bailee for purposes of perfection) shall have received
certificates or other instruments representing all such equity interests,
together 

 

29

 

with undated stock powers or other instruments of transfer with respect
thereto endorsed in blank, in each case to the extent required thereby.

 

(iii)                               All indebtedness of
Symmetry and Post Transaction Subsidiaries that is owing to Novamerican Steel
shall be evidenced by a promissory note or promissory notes and shall have been
pledged pursuant to the Canadian Collateral Agreement and Canadian Collateral
Agent for the benefit of the Issuer shall have received all such promissory
notes, together with instruments of transfer with respect thereto endorsed in
blank, in each case to the extent required thereby.

 

(iv)                              All documents and instruments,
including PPSA or other personal property security registry financing
statements or applications for registration, required by law to be filed,
registered or recorded to create the liens intended to be created by the
Canadian Security Agreements and perfect such liens to the extent required by,
and with the priority required by, the Canadian Security Agreements, shall have
been filed, registered or recorded or delivered to the Canadian Collateral
Agent for the benefit of the Issuer for filing, registration or recording.

 

(v)                                 Each of the Issuer and
Novamerican Steel shall have obtained all material consents and approvals
required to be obtained by it in connection with the execution and delivery of
all Canadian Security Agreements to which it is a party, the performance of its
obligations thereunder and the granting by it of the liens thereunder.

 

(vi)                              The Issuer shall have
received (A) counterparts of a Canadian Mortgage with respect to each
Canadian Mortgaged Property duly executed and delivered by the registered owner
of such Canadian Mortgaged Property, (B) a policy or policies of title
insurance by a nationally recognized title insurance company insuring the
charge of each such Canadian Mortgaged Property as a valid first-priority
charge on the Canadian Mortgaged Property described therein, free of any other
encumbrances (but subject to liens or other encumbrances for which exceptions
are taken in the policies of title insurance delivered in respect of the
Canadian Mortgaged Properties and subject to liens permitted under the
Indenture and the Canadian Collateral Agreement), together with such
endorsements, coinsurance and reinsurance as the Issuer may reasonably
request, and (C) such surveys, abstracts, appraisals, legal opinions and
other documents as the Issuer may reasonably request with respect to any
such Canadian Mortgage or Canadian Mortgaged Property.

 

(vii)                           All filing fees, taxes and
other amounts payable in connection with the filings, recordings, registrations
and other actions described in clauses (i) through (vi) above shall
have been paid or payment by Novamerican Steel provided for to the reasonable
satisfaction of the Representative and the Canadian Collateral Agent.

 

(r)                                    Perfection Certificate. On or prior to the
Closing Date, the Representative shall have received (i) a completed
perfection certificate in the form attached to the Collateral Agreement to
be dated as of the Closing Date (the “Perfection Certificate”), executed
by an executive officer of Symmetry, the Issuer and Novamerican Steel, together
with all attachments contemplated thereby, which shall be correct and complete
as of the Closing Date, and (ii) the 

 

30

 

results of lien searches,
conducted by a search service reasonably satisfactory to the Representative,
and the Representative shall be satisfied that no liens are outstanding on the
property or assets of the Issuer, Novamerican Steel or any of the Guarantors,
other than any such liens (A) which constitute Permitted Liens (as defined
in the Indenture) or (B) as to which the Initial Purchasers have received
documentation reasonably satisfactory to it evidencing the termination of such
liens.

 

All opinions,
letters, certificates and evidence mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only
if they are in form and substance reasonably satisfactory to counsel for
the Initial Purchasers.

 

7.                                       Indemnification
and Contribution.

 

(a)                                  Indemnification of the Initial Purchasers.
The Issuer and each of the Guarantors jointly and severally agree to indemnify
and hold harmless each Initial Purchaser, its affiliates, directors and
officers and each person, if any, who controls such Initial Purchaser within
the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, from and against any and all losses, claims, damages and
liabilities (including, without limitation, legal fees and other expenses
reasonably incurred in connection with any suit, action or proceeding or any
claim asserted, as such fees and expenses are incurred), joint or several, that
arise out of, or are based upon, any untrue statement or alleged untrue
statement of a material fact contained in the Preliminary Offering Memorandum,
any of the other Time of Sale Information, any Issuer Written Communication or
the Offering Memorandum (or any amendment or supplement thereto) or any
omission or alleged omission to state therein a material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, in each case except insofar as such
losses, claims, damages or liabilities arise out of, or are based upon, any
untrue statement or omission or alleged untrue statement or omission made in
reliance upon and in conformity with any information relating to any Initial
Purchaser furnished to the Issuer in writing by such Initial Purchaser through
the Representative expressly for use therein.

 

(b)                                 Indemnification of the Issuer. Each Initial
Purchaser agrees, severally and not jointly, to indemnify and hold harmless the
Issuer, each of the Guarantors, each of their respective directors and officers
and each person, if any, who controls the Issuer or any of the Guarantors
within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above,
but only with respect to any losses, claims, damages or liabilities that arise
out of, or are based upon, any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with any
information relating to such Initial Purchaser furnished to the Issuer in
writing by such Initial Purchaser through the Representative expressly for use
in the Preliminary Offering Memorandum, any of the other Time of Sale
Information, any Issuer Written Communication or the Offering Memorandum (or
any amendment or supplement thereto), it being understood and agreed that the
only such information consists of the following: the fifth and sixth sentences
of the tenth paragraph and the first and last sentences of the twelfth
paragraph under the caption “Plan of Distribution” in the Preliminary Offering
Memorandum; provided that none of the Initial Purchasers shall have any
obligations pursuant to this paragraph (b) with respect to any Guarantor
that is a Joining Party, its affiliates, directors and each person, 

 

31

 

if any, who controls such
Guarantor until the Joinder Agreement is executed and delivered pursuant to Section 6(n)
hereof.

 

(c)                                  Notice and Procedures. If any suit,
action, proceeding (including any governmental or regulatory investigation),
claim or demand shall be brought or asserted against any person in respect of
which indemnification may be sought pursuant to either paragraph (a) or
(b) above, such person (the “Indemnified Person”) shall promptly
notify the person against whom such indemnification may be sought (the “Indemnifying
Person”) in writing; provided that the failure to notify the
Indemnifying Person shall not relieve it from any liability that it may have
under paragraph (a) or (b) above except to the extent that it
has been materially prejudiced (through the forfeiture of substantive rights or
defenses) by such failure; and provided, further, that the
failure to notify the Indemnifying Person shall not relieve it from any
liability that it may have to an Indemnified Person otherwise than under
paragraph (a) or (b) above. If any such proceeding shall be brought
or asserted against an Indemnified Person and it shall have notified the
Indemnifying Person thereof, the Indemnifying Person shall retain counsel
reasonably satisfactory to the Indemnified Person (who shall not, without the
consent of the Indemnified Person, be counsel to the Indemnifying Person) to
represent the Indemnified Person and any others entitled to indemnification
pursuant to this Section 7 that the Indemnifying Person may designate
in such proceeding and shall pay the fees and expenses of such proceeding and
shall pay the fees and expenses of such counsel related to such proceeding, as
incurred. In any such proceeding, any Indemnified Person 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 Person unless (i) the Indemnifying
Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the
Indemnifying Person has failed within a reasonable time to retain counsel
reasonably satisfactory to the Indemnified Person; (iii) the Indemnified
Person shall have reasonably been advised by counsel that there may be
legal defenses available to it that are different from or in addition to those
available to the Indemnifying Person; or (iv) the named parties in any
such proceeding (including any impleaded parties) include both the Indemnifying
Person and the Indemnified Person and representation of both parties by the
same counsel would be inappropriate due to actual or potential differing
interests between them. It is understood and agreed that the Indemnifying
Person shall not, in connection with any proceeding or related proceeding 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 Indemnified Persons,
and that all such fees and expenses shall be reimbursed as they are incurred. Any
such separate firm for any Initial Purchaser, its affiliates, directors and
officers and any control persons of such Initial Purchaser shall be designated
in writing by J.P. Morgan Securities Inc. and any such separate firm for the
Issuer, the Guarantors, their respective directors and officers and any control
persons of the Issuer and the Guarantors shall be designated in writing by the
Issuer. The Indemnifying Person 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
Person agrees to indemnify each Indemnified Person from and against any loss or
liability by reason of such settlement or judgment. Notwithstanding the
foregoing sentence, if at any time an Indemnified Person shall have requested
that an Indemnifying Person reimburse the Indemnified Person for fees and
expenses of counsel as contemplated by this paragraph, the Indemnifying Person
shall be liable for any settlement of any proceeding effected without its
written consent if (i) such settlement is entered into more than 45 days
after receipt by the Indemnifying Person of such request and (ii) the
Indemnifying Person shall not have reimbursed the Indemnified Person

 

32

 

in accordance with such request
prior to the date of such settlement. No Indemnifying Person shall, without the
written consent of the Indemnified Person, effect any settlement of any pending
or threatened proceeding in respect of which any Indemnified Person is or could
have been a party and indemnification could have been sought hereunder by such
Indemnified Person, unless such settlement (x) includes an unconditional
release of such Indemnified Person, in form and substance reasonably
satisfactory to such Indemnified Person, from all liability on claims that are
the subject matter of such proceeding and (y) does not include any
statement as to or any admission of fault, culpability or a failure to act by
or on behalf of any Indemnified Person.

 

(d)                                 Contribution. If the indemnification
provided for in paragraphs (a) and (b) above is unavailable to an
Indemnified Person or insufficient in respect of any losses, claims, damages or
liabilities referred to therein, then each Indemnifying Person under such
paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall
contribute to the amount paid or payable by such Indemnified Person 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 Issuer and the
Guarantors on the one hand and the Initial Purchasers on the other from the
offering of the Securities or (ii) if the allocation provided by clause (i) is
not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) but also
the relative fault of the Issuer and the Guarantors on the one hand and the
Initial Purchasers on the other 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
Issuer and the Guarantors on the one hand and the Initial Purchasers on the
other shall be deemed to be in the same respective proportions as the net
proceeds (before deducting expenses) received by the Issuer from the sale of
the Securities and the total discounts and commissions received by the Initial
Purchasers in connection therewith, as provided in this Agreement, bear to the
aggregate offering price of the Securities. The relative fault of the Issuer
and the Guarantors on the one hand and the Initial Purchasers on the other
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 Issuer or any
Guarantor or by the Initial Purchasers and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement
or omission.

 

(e)                                  Limitation on Liability. The Issuer, the
Guarantors and the Initial Purchasers agree that it would not be just and
equitable if contribution pursuant to this Section 7 were determined by pro
rata allocation (even if the Initial Purchasers 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 paragraph (d) above.
The amount paid or payable by an Indemnified Person as a result of the losses,
claims, damages and liabilities referred to in paragraph (d) above shall
be deemed to include, subject to the limitations set forth above, any legal or
other expenses incurred by such Indemnified Person in connection with any such
action or claim. Notwithstanding the provisions of this Section 7, in no
event shall an Initial Purchaser be required to contribute any amount in excess
of the amount by which the total discounts and commissions received by such
Initial Purchaser with respect to the offering of the Securities exceeds the
amount of any damages that such Initial Purchaser 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 

 

33

 

Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Initial Purchasers’ obligations to contribute pursuant
to this Section 7 are several in proportion to their respective purchase
obligations hereunder and not joint.

 

(f)                                    Non-Exclusive Remedies. The remedies
provided for in this Section 7 are not exclusive and shall not limit any
rights or remedies that may otherwise be available to any Indemnified
Person at law or in equity.

 

8.                                       Termination.
This Agreement may be terminated in the absolute discretion of the
Representative, by notice to the Issuer, if after the execution and delivery of
this Agreement and on or prior to the Closing Date (i) trading generally
shall have been suspended or materially limited on the New York Stock Exchange
or the over-the-counter market; (ii) trading of any securities issued or
guaranteed by the Issuer, NSI or any of the Guarantors shall have been
suspended on any exchange or in any over-the-counter market; (iii) a
general moratorium on commercial banking activities shall have been declared by
federal or New York State authorities; or (iv) there shall have occurred
any outbreak or escalation of hostilities or any change in financial markets or
any calamity or crisis, either within or outside the United States, that, in
the judgment of the Representative, is material and adverse and makes it
impracticable or inadvisable to proceed with the offering, sale or delivery, of
the Securities on the terms and in the manner contemplated by this Agreement,
the Time of Sale Information and the Offering Memorandum.

 

9.                                       Defaulting
Initial Purchaser. (a)  If, on the Closing Date, any Initial Purchaser defaults on its obligation to
purchase the Securities that it has agreed to purchase hereunder, the
non-defaulting Initial Purchasers may in their discretion arrange for the
purchase of such Securities by other persons satisfactory to the Issuer on the
terms contained in this Agreement. If, within 24 hours after any such default
by any Initial Purchaser, the non-defaulting Initial Purchasers do not arrange
for the purchase of such Securities, then the Issuer shall be entitled to a
further period of 24 hours within which to procure other persons satisfactory
to the non-defaulting Initial Purchasers to purchase such Securities on such
terms. If other persons become obligated or agree to purchase the Securities of
a defaulting Initial Purchaser, either the non-defaulting Initial Purchasers or
the Issuer may postpone the Closing Date for up to three full business
days in order to effect any changes that in the opinion of counsel for the
Issuer or counsel for the Initial Purchasers may be necessary in the Time
of Sale Information, the Offering Memorandum or in any other document or
arrangement, and the Issuer agrees to promptly prepare any amendment or
supplement to the Time of Sale Information or the Offering Memorandum that
effects any such changes. As used in this Agreement, the term “Initial
Purchaser” includes, for all purposes of this Agreement unless the context
otherwise requires, any person not listed in Schedule 1 hereto
that, pursuant to this Section 9, purchases Securities that a defaulting
Initial Purchaser agreed but failed to purchase.

 

(b)                                 If,
after giving effect to any arrangements for the purchase of the Securities of a
defaulting Initial Purchaser or Initial Purchasers by the non-defaulting
Initial Purchasers and the Issuer as provided in paragraph (a) above, the
aggregate principal amount of such Securities that remains unpurchased does not
exceed one-eleventh of the aggregate principal amount of all the Securities,
then the Issuer shall have the right to require each non-defaulting Initial
Purchaser to 

 

34

 

purchase the principal amount
of Securities that such Initial Purchaser agreed to purchase hereunder plus
such Initial Purchaser’s pro  rata share (based on the principal
amount of Securities that such Initial Purchaser agreed to purchase hereunder)
of the Securities of such defaulting Initial Purchaser or Initial Purchasers
for which such arrangements have not been made.

 

(c)                                  If,
after giving effect to any arrangements for the purchase of the Securities of a
defaulting Initial Purchaser or Initial Purchasers by the non-defaulting
Initial Purchasers and the Issuer as provided in paragraph (a) above, the
aggregate principal amount of such Securities that remains unpurchased exceeds
one-eleventh of the aggregate principal amount of all the Securities, or if the
Issuer shall not exercise the right described in paragraph (b) above, then
this Agreement shall terminate without liability on the part of the
non-defaulting Initial Purchasers. Any termination of this Agreement pursuant
to this Section 9 shall be without liability on the part of the
Issuer, NSI or the Guarantors, except that the Issuer and each of the
Guarantors will continue to be liable for the payment of expenses as set forth
in Section 10 hereof and except that the provisions of Section 7
hereof shall not terminate and shall remain in effect.

 

(d)                                 Nothing
contained herein shall relieve a defaulting Initial Purchaser of any liability
it may have to the Issuer, its affiliates or any non-defaulting Initial
Purchaser for damages caused by its default.

 

10.                                 Payment
of Expenses. (a)  Whether or not the transactions contemplated by this
Agreement are consummated or this Agreement is terminated, the Issuer and each
of the Guarantors jointly and severally agree to pay or cause to be paid all
costs and expenses incident to the performance of their respective obligations
hereunder, including without limitation, (i) the costs incident to the
authorization, issuance, sale, preparation and delivery of the Securities and,
as applicable, the Exchange Securities and any taxes payable in that
connection; (ii) the costs incident to the preparation and printing of the
Preliminary Offering Memorandum, any other Time of Sale Information, any Issuer
Written Communication and the Offering Memorandum (including any amendment or
supplement thereto) and the distribution thereof; (iii) the costs of
reproducing and distributing each of the Transaction Documents; (iv) the
fees and expenses of the Issuer’s, NSI’s and the Guarantors’ counsel and
independent accountants; (v) the fees and expenses incurred in connection
with the registration or qualification and determination of eligibility for
investment of the Securities under the laws of such jurisdictions as the
Representative may designate and the preparation, printing and
distribution of a Blue Sky Memorandum (including the related reasonable fees
and expenses of one counsel for the Initial Purchasers in connection
therewith); (vi) any fees charged by rating agencies for rating the
Securities; (vii) the fees and expenses of the Trustee and any paying
agent (including related fees and expenses of any counsel to such parties); (viii) all
expenses and application fees incurred in connection with the application for
the inclusion of the Securities on the PORTAL Market and the approval of the
Securities for book-entry transfer by DTC; (ix) all expenses incurred by
the Issuer in connection with any “road show” presentation to potential
investors; and (x) the costs of creating and perfecting the security
interests as contemplated by the Security Agreements (including the related
reasonable costs of counsel for the Initial Purchasers in connection therewith)
and the fees and expenses of the Collateral Agents (including the reasonable
fees and expenses of their professional advisors). It is understood, however,
that except as provided in this Section, Section 7 and Section 9, the
Initial Purchasers will pay all of their costs and 

 

35

 

expenses, including the fees
and expenses of their counsel and any advertising expenses connected with any
offers they may make.

 

(b)                                 If
(i) this Agreement is terminated pursuant to Section 8, (ii) the
Issuer for any reason fails (other than by reason of a breach of this Agreement
by the Initial Purchasers) to tender the Securities for delivery to the Initial
Purchasers or (iii) the Initial Purchasers decline to purchase the
Securities for any reason permitted under this Agreement, the Issuer and each
of the Guarantors jointly and severally agree to reimburse the Initial
Purchasers for all out-of-pocket costs and expenses (including the fees and
expenses of their counsel) reasonably incurred by the Initial Purchasers in
connection with this Agreement and the offering contemplated hereby.

 

11.                                 Persons
Entitled to Benefit of Agreement. This Agreement shall inure to the benefit
of and be binding upon (a) the parties hereto and their respective
successors and any controlling persons referred to herein and (b)(i) the
affiliates, officers and directors of each Initial Purchaser and (ii) the
officers and directors of the Issuer and each of the Guarantors, in the case of
clauses (b)(i) and (b)(ii) above, referred to in Section 7
hereof. Nothing in this Agreement is intended or shall be construed to give any
other person any legal or equitable right, remedy or claim under or in respect
of this Agreement or any provision contained herein. No purchaser of Securities
from any Initial Purchaser shall be deemed to be a successor merely by reason
of such purchase.

 

12.                                 Survival.
The respective indemnities, rights of contribution, representations, warranties
and agreements of the Issuer, Novamerican Steel and each of the Guarantors and
the Initial Purchasers contained in this Agreement or made by or on behalf of
the Issuer, Novamerican Steel, the Guarantors or the Initial Purchasers
pursuant to this Agreement or any certificate delivered pursuant hereto shall
survive the delivery of and payment for the Securities and shall remain in full
force and effect, regardless of any termination of this Agreement or any
investigation made by or on behalf of the Issuer, Novamerican Steel, the
Guarantors or the Initial Purchasers.

 

13.                                 Certain
Defined Terms. For purposes of this Agreement, (a) except where
otherwise expressly provided, the term “affiliate” has the meaning set forth in
Rule 405 under the Securities Act; (b) the term “business day” means
any day other than a day on which banks are permitted or required to be closed
in New York City; (c) the term “Exchange Act” means the Securities
Exchange Act of 1934, as amended; (d) the term “subsidiary” has the
meaning set forth in Rule 405 under the Securities Act; and (e) the
term “written communication” has the meaning set forth in Rule 405 under
the Securities Act.

 

14.                                 Consent
to Jurisdiction. Any legal suit, action or proceeding arising out of or
based upon this Agreement or the transactions contemplated hereby (the “Related
Proceedings”) may be instituted in the federal courts of the United
States located in the City and County of New York or the courts of the State of
New York in each case located in the City and County of New York (collectively,
the “Specified Courts”), and each party irrevocably submits to the
exclusive jurisdiction (except for suits, actions, or proceedings instituted in
regard to the enforcement of a judgment of any Specified Court in a Related
Proceeding (each such judgment, a “Related Judgment”), as to which such
jurisdiction is non-exclusive) of the Specified Courts in any Related
Proceeding. Service of any process, summons, notice or document by mail to such

 

36

 

party’s address set forth below
shall be effective service of process for any Related Proceeding brought in any
Specified Court. The parties irrevocably and unconditionally waive any
objection to the laying of venue of any Specified Proceeding in the Specified
Courts and irrevocably and unconditionally waive and agree not to plead or
claim in any Specified Court that any Related Proceeding brought in any
Specified Court has been brought in an inconvenient forum. Each party not
located in the United States irrevocably appoints CT Corporation System as its
agent to receive service of process or other legal summons for purposes of any
Related Proceeding that may be instituted in any Specified Court.

 

15.                                 Waiver
of Immunity. With respect to any Related Proceeding, each party irrevocably
waives, to the fullest extent permitted by applicable law, all immunity
(whether on the basis of sovereignty or otherwise) from jurisdiction, service
of process, attachment (both before and after judgment) and execution to which
it might otherwise be entitled in the Specified Courts and, with respect to any
Related Judgment, each party waives any such immunity in the Specified Courts
or any other court of competent jurisdiction and will not raise or claim or
cause to be pleaded any such immunity at or in respect of any such Related
Proceeding or Related Judgment, including, without limitation, any immunity
pursuant to the United States Foreign Sovereign Immunities Act of 1976, as
amended.

 

16.                                 Judgment
Currency. If for the purposes of obtaining judgment in any court it is
necessary to convert a sum due hereunder into any currency other than U.S.
dollars, the parties hereto agree, to the fullest extent that they may effectively
do so, that the rate of exchange used shall be the rate at which in accordance
with normal banking procedures the Initial Purchasers could purchase U.S.
dollars with such other currency in New York City on the business day preceding
that on which final judgment is given. The obligations of the Issuer,
Novamerican Steel and each Guarantor in respect of any sum due from them to any
Initial Purchaser shall, notwithstanding any judgment in any currency other
than U.S. dollars, not be discharged until the first business day, following
receipt by such Initial Purchaser of any sum adjudged to be so due in such
other currency, on which (and only to the extent that) such Initial Purchaser may in
accordance with normal banking procedures purchase U.S. dollars with such other
currency; if the U.S. dollars so purchased are less than the sum originally due
to such Initial Purchaser hereunder, the Issuer, Novamerican Steel and each
Guarantor agree, as a separate obligation and notwithstanding any such
judgment, to indemnify such Initial Purchaser against such loss. If the U.S.
dollars so purchased are greater than the sum originally due to such Initial
Purchaser hereunder, such Initial Purchaser agrees to pay to the Issuer,
Novamerican Steel and the Guarantors (but without duplication) an amount equal
to the excess of the U.S. dollars so purchased over the sum originally due to
such Initial Purchaser hereunder.

 

17.                                 Miscellaneous.
(a)  Authority of the Representative. Any
action by the Initial Purchasers hereunder may be taken by J.P. Morgan
Securities Inc. on behalf of the Initial Purchasers, and any such action taken
by J.P. Morgan Securities Inc. shall be binding upon the Initial Purchasers.

 

Notices.
All notices and other communications hereunder shall be in writing and shall be
deemed to have been duly given if mailed or transmitted and confirmed by any
standard form of telecommunication. Notices to the Initial Purchasers
shall be given to the Representative c/o J.P. Morgan Securities Inc., 270 Park
Avenue, New York, New York 10017 (fax: 
(212)-270-1063); 

 

37

 

Attention:
Timothy Collins. Notices to the Issuer, Novamerican Steel and the Guarantors
shall be given to them at Symmetry Holdings Inc., 28 West 44th Street, 16th
Floor, New York, New York 10036, (fax: (646)-429-1541); Attention: General
Counsel.

 

(b)                                 Governing Law. This Agreement shall be
governed by and construed in accordance with the laws of the State of New York.

 

(c)                                  Counterparts. This Agreement may be
signed in counterparts (which may include counterparts delivered by any
standard form of telecommunication), each of which shall be an original
and all of which together shall constitute one and the same instrument.

 

(d)                                 Amendments or Waivers. No amendment or
waiver of any provision of this Agreement, nor any consent or approval to any
departure therefrom, shall in any event be effective unless the same shall be
in writing and signed by the parties hereto.

 

(e)                                  Headings. The headings herein are included
for convenience of reference only and are not intended to be part of, or
to affect the meaning or interpretation of, this Agreement.

 

38

 

If the
foregoing is in accordance with your understanding, please indicate your
acceptance of this Agreement by signing in the space provided below.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  NOVAMERICAN STEEL FINCO INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Karen G. Narwold

  
	
   

  	
   

  	
  Name: Karen G. Narwold

  
	
   

  	
   

  	
  Title: Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SYMMETRY HOLDINGS INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Domenico Lepore

  
	
   

  	
   

  	
  Name: Domenico Lepore

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NOVAMERICAN STEEL HOLDINGS INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Karen G. Narwold

  
	
   

  	
   

  	
  Name: Karen G. Narwold

  
	
   

  	
   

  	
  Title: Secretary

  

 

 

Accepted:  November 14, 2007

 

J.P. MORGAN SECURITIES INC.

 

For itself and on behalf of the

several Initial Purchasers listed

in Schedule 1 hereto.

 

 

	
  By

  	
  /s/ David A. Dwyer

  	
   

  	 

	
   

  	
  Authorized
  Signatory

  	
   

  
	
   

  	
  David A.
  Dwyer

  	
   

  
	
   

  	
  Executive
  Director

  	
   

  

 

39

 

Schedule 1

 

	
  Initial Purchaser

  	
   

  	
  Principal Amount

  	
   

  
	
  J.P. Morgan Securities Inc.

  	
   

  	
  $

  	
  210,010,500.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  CIBC World Markets Corp.

  	
   

  	
  $

  	
  104,989,500.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  315,000,000.00

  	
   

  

 

 

Schedule 2

 

Guarantors

 

Symmetry Holdings Inc.

 

Novamerican Steel Holdings Inc.

 

Integrated Steel Industries, Inc.

 

American Steel and Aluminum Corporation

 

Nova Tube and Steel, Inc.

 

Novamerican Tube Holdings, Inc.

 

Nova Tube Indiana, LLC

 

 

Schedule 3(a)

 

Mortgaged
Properties

 

One West Albany Drive, Colonie (Albany), NY

 

11111 Leadbetter Road, Hanover Industrial Park, Ashland, VA

 

27 Elm Street, Auburn, MA

 

197 Dexter Street, Cumberland, RI

 

2751 Spring Garden Drive, Lower Swatara Township, Dauphin County, PA

 

419/425 Homestead Avenue, Hartford, CT

 

1080/1050 University Avenue, Norwood, MA

 

115 Wallace Avenue, South Portland, ME

 

4601 Crown Road, Clay (Syracuse), NY

 

600 Dean Sievers Place, Falls Township, Buck County, PA

 

1195 Port Road, Jeffersonville, IN

 

 

Schedule 3(b)

 

Filing
Jurisdictions

 

	
  No. of

  Properties

  	
   

  	
  STATE

  	
   

  	
  COUNTY/TOWN

  	
   

  
	
  1

  	
   

  	
  Connecticut

  	
   

  	
  City of
  Hartford

  	
   

  
	
  1

  	
   

  	
  Indiana

  	
   

  	
  Clark

  	
   

  
	
  1

  	
   

  	
  Maine

  	
   

  	
  Cumberland

  	
   

  
	
  2

  	
   

  	
  Massachusetts

  	
   

  	
  Norfolk

  Worcester

  	
   

  
	
  2

  	
   

  	
  New York

  	
   

  	
  Albany

  Onondaga

  	
   

  
	
  2

  	
   

  	
  Pennsylvania

  	
   

  	
  Bucks

  Dauphin

  	
   

  
	
  1

  	
   

  	
  Rhode island

  	
   

  	
  Town of
  Cumberland

  	
   

  
	
  1

  	
   

  	
  Virginia

  	
   

  	
  Hanover

  	
   

  

 

 

Schedule 3(c)

 

Canadian
Mortgaged Properties

 

1.                                       830
South Service Road, Stoney Creek, Ontario

2.                                       553
Léon Harmel Street, Granby, Québec

3.                                       424
St.-Vallier Street, Granby, Québec

4.                                       50
Pacifique Street East, Bromont, Québec

 

 

Schedule 3(d)

 

Canadian Mortgage
Jurisdictions

 

1.                                       Ontario

2.                                       Quebec

 

 

Schedule 4

 

Joining
Parties

 

Integrated Steel Industries, Inc.

 

American Steel and Aluminum Corporation

 

Nova Tube and Steel, Inc.

 

Novamerican Tube Holdings, Inc.

 

Nova Tube Indiana, LLC

 

Novamerican Steel Inc.

 

 

Schedule 5(a)

 

Subsidiaries
of NSI

 

Prior to commencement of the Transactions:

 

156499 Canada Inc., a Canadian corporation

 

McKendwell Investments Inc., a Canadian corporation

 

165948 Canada Inc., a Canadian corporation

 

Nova Steel Ltd., a Canadian corporation — Acier Nova Ltée

 

Acier Metco Inc., a Quebec company

 

Integrated Steel Industries, Inc., a Delaware corporation

 

Nova Tube Inc., a Québec company
— Tube Nova Inc.

 

Nova Tube Ontario Inc., a Canadian corporation — Tube Nova Ontario Inc.

 

Cresswell Industries Inc., a Canadian corporation — Industries
Cresswell Inc.

 

Nova Steel Processing Centre Ltd., a Canadian corporation — Centre de
Traitement Aeier Nova Ltée

 

Argo Steel Ltd., a Québec company — Acier Argo Ltée

 

Hencorp LLC, a Delaware limited liability company

 

Chriscorp ULC, a Nova Scotia unlimited liability company

 

Delta Tube Inc., a Québec company  that is 60%
owned by Nova Steel Ltd. — Tubes Delta Inc.

 

Tubes Delta, Société en Commandite, a Québec limited partnership that
is 60% owned by Nova Steel Ltd. and of which Delta Tube Inc. is the General
Partner — Delta Tube and Company Limited

 

American Steel and Aluminum Corporation, a Massachusetts corporation

 

Nova Tube and Steel, Inc., a Delaware corporation

 

Novamerican Tube Holdings, Inc. (Placements Novamerican Tube
Inc.), a Delaware corporation

 

Annaco General Partnership, a Delaware general partnership

 

Nova Tube Indiana, LLC, a Delaware limited liability company

 

 

4421591 Canada Inc., a Canadian corporation

 

48

 

Schedule 5(b)

 

Subsidiaries
of the Issuer

 

1.                                       Prior
to the consummation of the Transactions:

 

632421 N.B. Ltd., a New Brunswick corporation

 

632422 N.B. Ltd., a New Brunswick corporation

 

2.                                       After
consummation of the Transactions:

 

Integrated Steel Industries, Inc., a
Delaware corporation

 

American Steel and Aluminum Corporation, a
Massachusetts corporation

 

Nova Tube and Steel, Inc., a Delaware
corporation

 

Novamerican Tube Holdings, Inc., a
Delaware corporation

 

Nova Tube Indiana, LLC, a Delaware limited
liability company

 

Novamerican Steel Inc., a Canadian
corporation

 

632422 N.B. Ltd., a New Brunswick corporation

 

Delta Tube Inc., a Québec company that will
be 60% owned by Novamerican Steel Inc. — Tubes Delta Inc.

 

Tubes Delta, Société en Commandite, a Québec
limited partnership that will be 60% owned by Novamerican Steel Inc. and of
which Delta Tube Inc. is the General Partner — Delta Tube and Company
Limited

 

3217928 Nova Scotia Company

 

3217930 Nova Scotia Company

 

3218088 Nova Scotia Company

 

Acier Metco Inc., a Quebec company

 

4421591 Canada Inc., a Canadian corporation

 

Argo Steel Ltd., a Québec company

 

Nova Tube Inc., a Québec company

 

 

Hencorp LLC, a Delaware limited liability
company

 

50

 

Schedule 5(c)

 

Subsidiaries
of Symmetry

 

1.                                       Prior
to consummation of the Transactions:

 

Novamerican Steel Holdings Inc., a Delaware
corporation

 

Novamerican Steel Finco Inc., a Delaware
corporation

 

All subsidiaries of the Issuer listed in Schedule 5(b)(1)

 

2.                                       After
consummation of the Transactions:

 

Novamerican Steel Holdings Inc., a Delaware
corporation

 

Novamerican Steel Finco Inc., a Delaware
corporation

 

All subsidiaries of the Issuer listed in Schedule 5(b)(2)

 

 

ANNEX A

 

Additional
Time of Sale Information

 

1.                                       Term sheet
containing the terms of the securities, substantially in the form of Annex
B.

 

2.                                       Electronic Road
Show Presentation, dated November 2, 2007. 

 

 

ANNEX B

 

Novamerican
Steel Finco Inc.

 

Pricing Term
Sheet

 

	
  Issuer:

  	
   

  	
  Novamerican Steel Finco Inc.

  	
   

  
	
  Security Description:

  	
   

  	
  Senior Secured Notes

  	
   

  
	
  Distribution:

  	
   

  	
  144A/RegS w/ Registration Rights

  	
   

  
	
  Face:

  	
   

  	
  $315,000,000 

  	
   

  
	
  Gross Proceeds:

  	
   

  	
  $315,000,000

  	
   

  
	
  Net Proceeds to Issuer:

  	
   

  	
  $305,550,000

  	
   

  
	
  Coupon:

  	
   

  	
  11.50%

  	
   

  
	
  Maturity:

  	
   

  	
  November 15, 2015

  	
   

  
	
  Offering Price:

  	
   

  	
  The initial purchasers may offer the notes from time to time, in the
  over-the-counter market or through negotiated transactions at market prices
  or negotiated prices. 

  	
   

  
	
  Benchmark:

  	
   

  	
  UST 4.5% due 11/15/2015

  	
   

  
	
  Ratings:

  	
   

  	
  B3/B-

  	
   

  
	
  Interest Pay Dates:

  	
   

  	
  November 15 and May 15

  	
   

  
	
  Beginning:

  	
   

  	
  May 15, 2008

  	
   

  
	
  Equity Clawback:

  	
   

  	
  Up to 35% at 111.50%

  	
   

  
	
  Until:

  	
   

  	
  November 15, 2010

  	
   

  
	
  Optional redemption:

  	
   

  	
  On or
  after:

  	
   

  	
  Price:

  	
   

  
	
   

  	
   

  	
  November 15, 2011

  	
   

  	
  105.750

  	
  %

  
	
   

  	
   

  	
  November 15, 2012

  	
   

  	
  102.875

  	
  %

  
	
   

  	
   

  	
  November 15, 2013 and thereafter

  	
   

  	
  100.000

  	
  %

  
	
  Change of control:

  	
   

  	
  Put @ 101% of principal plus accrued interest

  	
   

  
	
  Trade Date:

  	
   

  	
  November 14, 2007

  	
   

  
	
  Settlement Date:

  	
  (T+1)

  	
  November 15, 2007

  	
   

  
	
  CUSIP:

  	
   

  	
  144A:  66987YAA1

  	
   

  
	
   

  	
   

  	
  Reg S:  U6695TAA8

  	
   

  
	
  ISIN:

  	
   

  	
  USU6695TAA89

  	
   

  
	
  Denominations:

  	
   

  	
  2,000x1,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Bookrunners:          

  	
   

  	
  JPMorgan

  	
   

  
	
   

  	
   

  	
  CIBC World Markets

  	
   

  
	
  Comments:

  	
   

  	
   

  	
   

  
	
  Certain U.S. federal income tax matters: 

  	
   

  	
  The notes may be issued with original issue discount (“OID”) in an
  amount equal to the difference between their principal amount and their issue
  price. The “issue price” of each Note will be the first price at which a
  substantial amount of the notes is sold (other than to an underwriter,

  	
   

  

 

 

	
   

  	
   

  	
  placement agent or wholesaler). To the extent there is any OID, Note
  holders generally will be required to include such OID in
  gross income as it accrues, in advance of the receipt of cash attributable to
  that income and regardless of the holder’s regular method of accounting for
  U.S. federal income tax purposes.

   

  For a summary of certain U.S. federal income tax consequences of the
  purchase, ownership and disposition of the notes, you are encouraged to read
  “Certain U.S. federal income tax consequences” attached to this Pricing Term
  Sheet as Annex A. The information included in Annex A to this Pricing Term
  Sheet supersedes and replaces in its entirety the information set forth under
  the caption “Certain U.S. federal income tax consequences” in the Preliminary
  Offering Memorandum. 

  	
   

  

 

Capitalized terms used but not defined in this term sheet have the
meanings assigned to such terms in the Issuer’s Preliminary Offering Memorandum
dated October 29, 2007 (the “Preliminary Offering Memorandum”).

 

The notes have not been registered under the U.S. Securities Act of
1933, as amended, and are being offered only to qualified institutional buyers
under Rule 144A and outside the United States in compliance with
Regulation S.

 

This term sheet is qualified in its entirety by reference to the
Preliminary Offering Memorandum. The information in this term sheet supplements
the Preliminary Offering Memorandum and supersedes the information in the
Preliminary Offering Memorandum to the extent inconsistent with the information
in the Preliminary Offering Memorandum.

 

 

ANNEX A

 

Certain U.S. federal income tax consequences

 

To ensure
compliance with Internal Revenue Service Circular 230, you are hereby notified
that any discussion of tax matters set forth in this offering memorandum was
written in connection with the promotion or marketing of the transactions or
matters addressed herein and was not intended or written to be used, and cannot
be used by any prospective investor, for the purpose of avoiding tax-related
penalties under federal, state or local tax law. Each prospective investor
should seek advice based on its particular circumstances from an independent
tax advisor.

 

The following is a summary of
certain U.S. federal income tax consequences of the purchase, ownership and
disposition of the notes as of the date hereof. Except where noted, this
summary deals only with notes that are held as capital assets by holders who
purchase the notes for cash upon original issuance at their initial offering
price. As used herein, a “U.S. holder” means a beneficial owner of the notes
that is for U.S. federal income tax purposes any of the following:

 

•                                          an individual
citizen or resident of the United States;

 

•                                          a
corporation (or any other entity treated as a corporation for U.S. federal
income tax purposes) created or organized in or under the laws of the United
States, any state thereof or the District of Columbia;

 

•                                          an estate
the income of which is subject to U.S. federal income taxation regardless of
its source; or

 

•                                          a trust if
it (1) is subject to the primary supervision of a court within the United
States and one or more United States persons have the authority to control all
substantial decisions of the trust or (2) has a valid election in effect under
applicable U.S. Treasury regulations to be treated as a United States person.

 

The term “non-U.S. holder” means a
beneficial owner of the notes (other than a partnership or any other entity treated
as a partnership for U.S. federal income tax purposes) that is not a U.S.
holder.

 

This summary does not represent a
detailed description of the U.S. federal income tax consequences applicable to
you if you are a person subject to special tax treatment under the U.S. federal
income tax laws, including, without limitation:

 

•                                          a dealer in
securities or currencies;

 

•                                          a financial
institution;

 

•                                          a regulated
investment company;

 

•                                          a real
estate investment trust;

 

•                                          a
tax-exempt organization;

 

•                                          an insurance
company;

 

 

•                                          a person
holding the notes as part of a hedging, integrated, conversion or constructive
sale transaction or a straddle;

 

•                                          a trader in
securities that has elected the mark-to-market method of accounting for your
securities;

 

•                                          a person liable
for alternative minimum tax;

 

•                                          a
partnership or other pass-through entity for U.S. federal income tax purposes;

 

•                                          a U.S.
holder whose “functional currency” is not the U.S. dollar;

 

•                                          a
controlled foreign corporation;

 

•                                          a passive
foreign investment company; or

 

•                                          a U.S.
expatriate.

 

This summary is based on the
Internal Revenue Code of 1986, as amended (the “Code”), United States Treasury
regulations, administrative rulings and judicial decisions as of the date
hereof. Those authorities may be changed, possibly on a retroactive basis, so
as to result in U.S. federal income tax consequences different from those
summarized below.

 

If a partnership (including any
entity classified as a partnership for U.S. federal income tax purposes) holds
notes, the tax treatment of a partner will generally depend upon the status of
the partner and the activities of the partnership. If you are a partnership or
a partner in a partnership holding notes, you should consult your own tax
advisors.

 

This summary does not represent a
detailed description of the U.S. federal income tax consequences to you in
light of your particular circumstances and does not address the effects of any
state, local or non-United States tax laws. It is not intended to be, and
should not be construed to be, legal or tax advice to any particular purchaser
of notes. If you are considering the
purchase of notes, you should consult your own tax advisors concerning the
particular U.S. federal income tax consequences to you of the ownership of the
notes, as well as the consequences to you arising under the laws of any other
taxing jurisdiction.

 

Certain tax
consequences to U.S. holders

 

The following is a summary of
certain U.S. federal income tax consequences that will apply to U.S. holders of
the notes.

 

Payments of
interest

 

Except as set forth below,
qualified stated interest on a note will generally be taxable to you as
ordinary income at the time it is paid or accrued in accordance with your
method of accounting for tax purposes. If the notes are not issued with more
than a de minimis amount at original issue discount (“OID”), as described
below, all the interest payable on the notes will be qualified stated interest.

 

Original issue
discount

 

Depending
upon the issue price of the notes, the notes may be issued with OID in an
amount equal to the difference between their “stated redemption price at
maturity” (the sum of all payments to be made

 

 

on the
notes other than “qualified stated interest”) and their “issue price.” You
should be aware that you generally must include OID in gross income in advance
of the receipt of cash attributable to that income. OID is considered de
minimis if the total OID is less than twenty-five basis points (.25%),
multiplied by the number of full years from the issue date to the maturity date
of the Note. However, you generally will not be required to include separately
in income cash payments received on the notes, even if denominated as interest,
to the extent such payments do not constitute “qualified stated interest” (as
defined below).

 

This
summary is based upon final Treasury regulations addressing debt instruments
issued with OID.

 

The
“issue price” of each note will be the first price at which a substantial
amount of that particular offering is sold (other than to an underwriter,
placement agent or wholesaler). The term “qualified stated interest” means
stated interest that is unconditionally payable in cash or in property (other
than debt instruments of the issuer), and meet all of the following conditions:

 

•                                          it is
payable at least once per year;

 

•                                          it is
payable over the entire term of the note; and

 

•                                          it is
payable at a single fixed rate or, subject to certain conditions, based on one
or more interest indices.

 

The
stated interest payments on the notes are qualified stated interest.

 

The
amount of OID that you must include in income if you are the initial U.S.
holder of a note is the sum of the “daily portions” of OID with respect to the
note for each day during the taxable year or portion of the taxable year in
which you held such note (“accrued OID”). The daily portion is determined by
allocating to each day in any “accrual period” a pro rata portion of the OID
allocable to that accrual period. The “accrual period” for a note may be of any
length and may vary in length over the term of the note, provided that each
accrual period is no longer than one year and each scheduled payment of
principal or interest occurs on the first day or the final day of an accrual
period. The amount of OID allocable to any accrual period is an amount equal to
the excess, if any, of:

 

•                                          the product
of the note’s adjusted issue price at the beginning of such accrual period and
its yield to maturity (determined on the basis of compounding at the close of
each accrual period and properly adjusted for the length of the accrual
period), over

 

•                                          the
aggregate of all qualified stated interest allocable to the accrual period.

 

OID
allocable to a final accrual period is the difference between the amount
payable at maturity (other than a payment of qualified stated interest) and the
adjusted issue price at the beginning of the final accrual period. Special
rules will apply for calculating OID for an initial short accrual period. The
“adjusted issue price” of a note at the beginning of any accrual period is
equal to its issue price increased by the accrued OID for each prior accrual
period and reduced by any payments made on such note (other than qualified
stated interest) on or before the first day of the accrual period. Under these
rules, you will have to include in income increasingly greater amounts of OID
in successive accrual periods. We are required to provide information returns
stating the amount of OID accrued on notes held of record by persons other than
corporations and other exempt holders.

 

You may
elect to treat all interest on a note as OID and calculate the amount
includible in gross income under the constant yield method described above. The
election is to be made for the taxable

 

 

year in
which you acquired the note, and may not be revoked without the consent of the
Internal Revenue Service (“IRS”). You should consult with your own tax advisors
about this election.

 

Sale, exchange,
retirement, or other taxable disposition of notes

 

Upon the sale, exchange,
retirement, or other taxable disposition of a note, you generally will
recognize gain or loss equal to the difference between the amount realized upon
the sale, exchange, retirement, or other taxable disposition (less an amount
equal to any accrued qualified stated interest that you did not previously
include in income, which will be taxable as interest income) and the adjusted
tax basis of the note. Your adjusted tax basis in a note will, in general, be
your cost for the note increased by the amount of OID, if any  previously included in income.

 

Any gain or loss you recognize will
be capital gain or loss and will be long-term capital gain or loss if at the
time of sale, exchange, retirement or other disposition, the note has been held
for more than one year. Capital gains of noncorporate U.S. holders (including
individuals) derived with respect to capital assets held for more than one year
are eligible for reduced rates of taxation. The deductibility of capital losses
is subject to limitations.

 

Certain tax
consequences to non-U.S. holders

 

The following is a summary of
certain U.S. federal income tax consequences that will apply to non-U.S.
holders of notes.

 

U.S. federal
withholding tax

 

The 30% U.S. federal withholding
tax will not apply to any payment of interest (including OID, if applicable) on
the notes under the “portfolio interest rule,” provided that:

 

•                                          interest
paid on the notes is not effectively connected with your conduct of a trade or
business in the United States;

 

•                                          you do not
actually (or constructively) own 10% or more of the total combined voting power
of all classes of our voting stock within the meaning of the Code and
applicable United States Treasury regulations;

 

•                                          you are not
a controlled foreign corporation that is related to us actually or
constructively through stock ownership;

 

•                                          you are not
a bank whose receipt of interest on the notes is described in Section
881(c)(3)(A) of the Code; and

 

•                                          either (a)
you provide your name and address on an IRS Form W-8BEN (or other applicable
form), and certify, under penalties of perjury, that you are not a United
States person as defined under the Code or (b) you hold your notes through
certain foreign intermediaries and satisfy the certification requirements of
applicable United States Treasury regulations. Special certification rules
apply to non-U.S. holders that are pass-through entities rather than
corporations or individuals.

 

If you cannot satisfy the
requirements described above, payments of interest (including OID, if
applicable) made to you will be subject to the 30% U.S. federal withholding
tax, unless you provide us with a properly executed:

 

 

•                                          IRS Form
W-8BEN (or other applicable form) certifying an exemption from or reduction in
withholding under the benefit of an applicable income tax treaty; or

 

•                                          IRS Form
W-8ECI (or other applicable form) certifying interest paid on the notes is not
subject to withholding tax because it is effectively connected with your
conduct of a trade or business in the United States (as discussed below under
“—U.S. federal income tax”).

 

The 30% U.S. federal withholding
tax generally will not apply to any payment of principal or gain that you
realize on the sale, exchange, retirement or other disposition of a note.

 

U.S. federal
income tax

 

If you are engaged in a trade or
business in the United States and interest (including OID, if applicable) on
the notes is effectively connected with the conduct of that trade or business
(and, if required by an applicable income tax treaty, is attributable to a
United States permanent establishment), then you will be subject to U.S.
federal income tax on that interest (including OID, if applicable)on a net
income basis (although you will be exempt from the 30% U.S. federal withholding
tax, provided the certification requirements discussed above in “—U.S. federal
withholding tax” are satisfied) in generally the same manner as if you were a
United States person as defined under the Code. In addition, if you are a
foreign corporation, you may be subject to a branch profits tax equal to 30%
(or lower applicable income tax treaty rate) of such interest (including OID,
if applicable), subject to adjustments.

 

Any gain realized on the
disposition of a note generally will not be subject to U.S. federal income tax
unless:

 

•                                          the gain is
effectively connected with your conduct of a trade or business in the United
States (and, if required by an applicable income tax treaty, is attributable to
a United States permanent establishment); or

 

•                                          you are an
individual who is present in the United States for 183 days or more in the
taxable year of that disposition, and certain other conditions are met.

 

Information
reporting and backup withholding

 

U.S. holders

 

In general, information reporting
requirements will apply to certain payments of principal and interest (including
OID, if applicable) paid on the notes and to the proceeds of the sale or other
disposition of a note paid to you (unless you are an exempt recipient such as a
corporation). Backup withholding may apply to such payments if you fail to
provide a taxpayer identification number or a certification that you are not
subject to backup withholding, or if you fail to report in full dividend and
interest income.

 

Backup withholding is not an
additional tax and any amounts withheld under the backup withholding rules may
be allowed as a refund or a credit against your U.S. federal income tax
liability provided the required information is timely furnished to the IRS.

 

Non-U.S. holders

 

Generally, we must report to the
IRS and to you the amount of interest (including OID, if applicable) paid to
you and the amount of tax, if any, withheld with respect to those payments.
Copies of the

 

 

information returns reporting such
interest payments and any withholding may also be made available to the tax
authorities in the country in which you reside under the provisions of an
applicable income tax treaty.

 

In general, you will not be subject
to backup withholding with respect to payments of interest (including OID, if
applicable) on the notes that we make to you provided that we do not have
actual knowledge or reason to know that you are a United States person as
defined under the Code, and we have received from you the required
certification that you are a non-U.S. holder described above in the fifth
bullet point under “—Certain tax consequences to non-U.S. holders—U.S. federal
withholding tax.”

 

Information reporting and,
depending on the circumstances, backup withholding will apply to the proceeds
of a sale or other disposition (including a redemption) of notes within the
United States or conducted through certain United States-related financial
intermediaries, unless you certify to the payor under penalties of perjury that
you are a non-U.S. holder (and the payor does not have actual knowledge or
reason to know that you are a United States person as defined under the Code),
or you otherwise establish an exemption.

 

Backup withholding is not an
additional tax and any amounts withheld under the backup withholding rules may
be allowed as a refund or a credit against your U.S. federal income tax
liability provided the required information is timely furnished to the IRS.

 

 

ANNEX C

 

Restrictions
on Offers and Sales Outside the United States(1)

 

In connection with offers and sales of
Securities outside the United States:

 

(a)                                  Each Initial
Purchaser acknowledges that the Securities have not 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 pursuant to an
exemption from, or in transactions not subject to, the registration
requirements of the Securities Act.

 

(b)                                 Each Initial
Purchaser, severally and not jointly, represents, warrants and agrees that:

 

(i)                                     Such
Initial Purchaser has offered and sold the Securities, and will offer and sell
the Securities, (A) as part of their distribution at any time and (B) otherwise
until 40 days after the later of the commencement of the offering of the
Securities and the Closing Date, only in accordance with Regulation S or Rule 144A
or any other available exemption from registration under the Securities Act.

 

(ii)                                  None
of such Initial Purchaser or any of its affiliates or any other person acting
on its or their behalf has engaged or will engage in any directed selling
efforts with respect to the Securities, and all such persons have complied and
will comply with the offering restrictions requirement of Regulation S.

 

(iii)                               At
or prior to the confirmation of sale of any Securities sold in reliance on
Regulation S, such Initial Purchaser will have sent to each distributor, dealer
or other person receiving a selling concession, fee or other remuneration that
purchase Securities from it during the distribution compliance period a
confirmation or notice to substantially the following effect:

 

“The Securities covered hereby have not been
registered under the U.S. Securities Act of 1933, as amended (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 (i) as part of their distribution
at any time or (ii) otherwise until 40 days after the later of the
commencement of the offering of the Securities and the date of original
issuance of the Securities, except in accordance with Regulation S or Rule 144A
or any other available exemption from registration under the Securities Act. Terms
used above have the meanings given to them by Regulation S.”

 

(1)          Capitalized terms used but not defined herein
have the meanings ascribed to such terms in the Purchase Agreement (the “Purchase
Agreement”) to which this Annex C is attached.

 

 

(iv)                              Such
Initial Purchaser has not and will not enter into any contractual arrangement
with any distributor with respect to the distribution of the Securities, except
with its affiliates or with the prior written consent of the Issuer.

 

(v)                                 Such
Initial Purchaser has not solicited and will not solicit offers for the
Securities from, and will not offer the Securities to, or for the account or
benefit of, a resident of Canada or within Canada, except those persons that
the Initial Purchaser reasonably believes are “accredited investors” (as
defined under Canadian Securities Laws), provided, further, that in the cause
of this clause (v), in purchasing such Securities such persons are deemed to
have so represented and agreed as provided under the caption “Representation
and Agreement by Purchasers” contained in the Canadian Offering Memorandum.

 

Terms used in paragraph (a) and this
paragraph (b) and not otherwise defined in this Agreement have the
meanings given to them by Regulation S.

 

(c)                                  Each Initial
Purchaser, severally and not jointly, represents, warrants and agrees that:

 

(i)                                     it
has only communicated or caused to be communicated and will only communicate or
cause to be communicated any invitation or inducement to engage in investment
activity (within the meaning of Section 21 of the United Kingdom Financial
Services and Markets Act 2000 (the “FSMA”)) received by it in connection
with the issue or sale of any Securities in circumstances in which Section 21(1) of
the FSMA does not apply to the Issuer or the Guarantors; and

 

(ii)                                  it
has complied and will comply with all applicable provisions of the FSMA with
respect to anything done by it in relation to the Securities in, from or
otherwise involving the United Kingdom.

 

(d)                                 Each Initial Purchaser
acknowledges that no action has been or will be taken by the Issuer that would
permit a public offering of the Securities, or possession or distribution of
any of the Time of Sale Information, the Offering Memorandum, any Issuer
Written Communication or any other offering or publicity material relating to
the Securities, in any country or jurisdiction where action for that purpose is
required.

 

(e)                                  In connection
with  offers and sales in Canada, the
Initial Purchasers represent and warrant, severally and not jointly, (A) that
they will not offer, sell or deliver Securities directly or indirectly in
Canada except pursuant to exemptions from the prospectus requirements of
Canadian Securities Laws and not in violation of a Canadian Securities Laws,
and (B) that (i) they are properly registered under the Canadian
Securities Laws of each of the applicable provinces in which Securities are
offered by way of private placement (the “Relevant Provinces”), (ii) they
will distribute Securities in any Relevant Provinces only through affiliates
which are properly registered under the Canadian Securities Laws of such
Relevant Provinces and in such case will distribute the Securities only in
accordance with such registration or (iii) they will distribute Securities
in any Relevant Province only in accordance with exemptions from the
registration requirements of applicable Canadian Securities Laws. The Initial
Purchasers 

 

2

 

acknowledge that the Securities have not been qualified under Canadian
Securities Laws and may not be offered or sold in Canada except in
accordance with this paragraph.

 

3

 

ANNEX D-1

 

[Form of Opinion of Kelley
Drye & Warren LLP](2)

 

(1)                                  Each
of Symmetry and the Issuer has been duly incorporated and is validly existing
and in good standing under the laws of the State of Delaware, and has the
corporate power and authority necessary to own or hold its properties and to
conduct its business as described in the Offering Memorandum and the Time of
Sale Information and is duly qualified to transact business and in good
standing in each jurisdiction listed opposite its name in Annex B
hereto.

 

(2)                                  Each
of the Guarantors incorporated or formed in the State of Delaware (the “Delaware
Guarantors”) has been duly organized, is validly existing as a corporation or
limited liability company, as the case may be, in good standing under the
laws of the jurisdiction of its organization, has the corporate or limited
liability company (as applicable) power and authority to own its property and
to conduct its business as described in the Offering Memorandum, except as
otherwise noted therein, and is duly qualified to transact business and is in
good standing in each jurisdiction listed opposite its name on Annex B
hereto.

 

(3)                                  Symmetry
has an authorized capitalization as set forth in each of the Time of Sale
Information and the Offering Memorandum under the heading “Capitalization”; and
all the outstanding shares of capital stock or other equity interests of the
Issuer and each of the Delaware Guarantors have been duly and validly
authorized and issued, are fully paid and are non-assessable.

 

(4)                                  Each
of Symmetry, the Issuer and each of the Delaware Guarantors has full corporate
or limited liability company (as applicable) right, power and authority to
execute and deliver each of the Transaction Documents to which it is a party
and to perform its obligations thereunder; and all action required to be
taken by it for the due and proper authorization, execution and delivery by it
of each of the Transaction Documents to which it is a party, and the
consummation by it of the transactions contemplated thereby has been duly and
validly taken.

 

(5)                                  The
Indenture has been duly authorized, executed and delivered by the Issuer,
Symmetry and each of the Delaware Guarantors and, assuming due execution and
delivery thereof by the Trustee, constitutes a valid and legally binding
agreement of the Issuer, Symmetry and each of the Guarantors enforceable
against the Issuer, Symmetry and each of the Guarantors in accordance with its
terms; and the Indenture conforms in all material respects to the requirements
of the Trust Indenture Act and the rules and regulations of the Commission
applicable to an indenture that is qualified thereunder.

 

(6)                                  The
Securities have been duly authorized, executed and delivered by the Issuer and,
when duly authenticated as provided in the Indenture and paid for as provided
in the 

 

(2)          Capitalized terms used but not defined herein
have the meanings ascribed to such terms in the Purchase Agreement (the “Purchase
Agreement”) to which this Annex D-1 is attached.

 

 

Purchase
Agreement, will be duly and validly issued and outstanding and will constitute
valid and legally binding obligations of the Issuer enforceable against the
Issuer in accordance with their terms, and will be entitled to the benefits of
the Indenture; and the Guarantees have been duly authorized by each of Symmetry
and each of the Delaware Guarantors and, when the Securities have been duly
executed, authenticated, issued and delivered as provided in the Indenture and
paid for as provided in the Purchase Agreement, will be valid and legally
binding obligations of each of Symmetry and each of the Guarantors, as
applicable, enforceable against each of Symmetry and each of the Guarantors in
accordance with their terms, and will be entitled to the benefits of the
Indenture.

 

(7)                                  The
Exchange Securities (including the related guarantees) have been duly
authorized by the Issuer, Symmetry and each of the Delaware Guarantors, and,
when duly executed, authenticated, issued and delivered as contemplated by the
Registration Rights Agreement, will be duly and validly issued and outstanding
and will constitute valid and legally binding obligations of the Issuer, as
issuer, and each of Symmetry and each of the Guarantors, as guarantor,
enforceable against the Issuer, Symmetry and each of the Guarantors, as
applicable, in accordance with their respective terms, and will be entitled to
the benefits of the Indenture.

 

(8)                                  The
Purchase Agreement has been duly authorized, executed and delivered by the
Issuer, Symmetry and Novamerican Steel Holdings, Inc. (“Holdings”)
and, when duly executed and delivered by the other parties thereto, will
constitute a valid and legally binding agreement of the Issuer, Symmetry and
Holdings enforceable against the Issuer, Symmetry and Holdings in accordance
with its terms. The Registration Rights Agreement has been duly authorized,
executed and delivered by the Issuer, Symmetry and each of the Delaware
Guarantors and, when duly executed and delivered by the other parties thereto,
will constitute a valid and legally binding agreement of the Issuer, Symmetry
and each of the Guarantors enforceable against the Issuer, Symmetry and each of
the Guarantors in accordance with its terms.

 

(9)                                  The
Collateral Agreement has been duly authorized, executed and delivered by each
of the Issuer, Symmetry and each of the Delaware Guarantors and, assuming due
execution and delivery thereof by the other parties thereto, constitutes a
valid and legally binding agreement of each of the Issuer, Symmetry and each of
the Guarantors enforceable against each of the Issuer, Symmetry and each of the
Guarantors in accordance with its terms; and the Intercreditor Agreement has
been duly authorized, executed and delivered by the Issuer, Symmetry and each
of the Delaware Guarantors and, assuming due execution and delivery thereof by
the other parties thereto, constitutes a valid and legally binding agreement of
the Issuer, Symmetry and each of the Guarantors enforceable against the Issuer,
Symmetry and each of the Guarantors in accordance with its terms.

 

(10)                            The
Intercreditor Agreement has been duly authorized, executed and delivered by the
Issuer, Symmetry and each of the Delaware Guarantors and, when duly executed
and delivered by the other parties thereto, will constitute a valid and legally
binding agreement of the Issuer and each of the Post Transaction Subsidiaries
(to the extent it is a party thereto), enforceable against the Issuer and each
of the Post Transaction Subsidiaries (to the extent it is a party thereto) in
accordance with its terms.

 

2

 

(11)                            The
Joinder Agreement has been duly authorized, executed and delivered by the
Issuer, Symmetry and each of the Delaware Guarantors.

 

(12)                            Assuming
due authorization, execution and delivery thereof by the parties thereto (other
than the Company, the Issuer and the Delaware Guarantors), and without
consideration of any laws of Canada which may be applicable thereto, each
Transaction Document governed by the laws of the State of New York is, or will
be, a valid and legally binding agreement of Novamerican Steel (to the extent
Novamerican Steel is, or will be, a party thereto), enforceable against
Novamerican Steel in accordance with its terms.

 

(13)                            Assuming
due authorization, execution and delivery of the Intercompany Note by 632421
N.B. Ltd., a New Brunswick Company (“632421”), and without consideration of any
laws of Canada which may be applicable thereto, the Intercompany Note
(which is governed by the laws of the State of New York) is a valid and legally
binding agreement of 632421, enforceable against 632421 in accordance with its
terms.

 

(14)                            Each
Transaction Document conforms in all material respects to the description
thereof contained in each of the Time of Sale Information and the Offering
Memorandum.

 

(15)                            The
execution, delivery and performance by each of the Issuer, Symmetry,
Novamerican Steel and each of the Guarantors of each of the Transaction
Documents to which it is a party, the issuance and sale of the Securities
(including the Guarantees) and compliance by each of the Issuer, Symmetry and
each of the Guarantors with the terms thereof and the consummation of the
transactions contemplated by the Transaction Documents to the extent applicable
to them will not (i) conflict with or result in a breach or violation of
any of the terms or provisions of, or constitute a default under, or result in
the creation or imposition of any lien, charge or encumbrance upon any property
or assets of Symmetry or any of the Post Transaction Subsidiaries pursuant to,
any indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument known to us to which Symmetry or any of the Post Transaction
Subsidiaries is a party or by which Symmetry or any of the Post Transaction
Subsidiaries is bound or to which any of the property or assets of Symmetry or
any of the Post Transaction Subsidiaries is subject, (ii) result in any
violation of the provisions of the certificate or incorporation, certificate of
formation, by-laws, operating agreement or similar organizational documents of
Symmetry, the Issuer or any of the Delaware Guarantors or (iii) result in
the violation of any law or statute or, to our knowledge, any judgment, order,
or decree of any court or governmental or regulatory authority, having jurisdiction
over Symmetry or any of the Post Transaction Subsidiaries except, (A) in
the case of clauses (i) and (iii) above, for any such conflict,
breach, violation or default that would not, individually or in the aggregate,
result in a Material Adverse Effect and (B) in the case of clause (i) above,
with respect to liens arising under the Transaction Documents.

 

(16)                            No
consent, approval, authorization, order, registration or qualification of or
with any court or arbitrator or governmental or regulatory authority is
required for the execution, delivery and performance by Symmetry, the Issuer,
Novamerican and each of the Guarantors of any of the Transaction Documents to
which each is a party, the issuance and sale of the Securities (including the
Guarantees) and compliance by each of Symmetry, the Issuer and 

 

3

 

each of the
Guarantors with the terms thereof and the consummation by them of the
transactions contemplated by the Transaction Documents on their part to be
consummated, except for such consents, approvals, authorizations, orders and
registrations or qualifications (i) as may be required under
applicable state securities laws in connection with the purchase and resale of
the Securities (including the Guarantees) by the Initial Purchasers, (ii) as
may be required with respect to the Exchange Securities (including the
related guarantees) under the Securities Act and applicable state securities
laws as contemplated by the Registration Rights Agreement or (iii) to the
extent that the failure to obtain a consent, approval, authorization, order,
registration or qualification, in each case related solely to the consummation
of the Acquisition and not to any financing transactions (including the
offering and sale of the Securities) related thereto, would not, individually
or in the aggregate, have a Material Adverse Effect.

 

(17)                            To
our knowledge, except as described in each of the Time of Sale Information and
the Offering Memorandum, there are no legal, governmental or regulatory
investigations, actions, suits or proceedings pending to which Symmetry or any
of the Post Transaction Subsidiaries is or might reasonably be expected to be a
party or to which any property of Symmetry or any of the Post Transaction
Subsidiaries is or may be the subject that we believe, individually or in
the aggregate, if determined adversely to Symmetry or any of the Post
Transaction Subsidiaries, would reasonably be expected to have a Material
Adverse Effect; and to our knowledge, no such investigations, actions, suits or
proceedings are threatened or contemplated by any governmental or regulatory
authority or threatened by others.

 

(18)                            The
descriptions in each of the Time of Sale Information and the Offering
Memorandum of the Securities and any United States statutes, legal,
governmental and regulatory proceedings; and the statements in each of the Time
of Sale Information and the Offering Memorandum under the heading “Certain
Federal Income Tax Considerations”, in each case, insofar as such descriptions
or statements constitute summaries of the terms of the Securities, legal
matters, documents or proceedings referred to therein, fairly summarize the
matters described therein in all material respects.

 

(19)                            Neither
Symmetry nor any of the Post Transaction Subsidiaries is, and after giving
effect to the offering and sale of the Securities and the application of the
proceeds thereof as described in each of the Time of Sale Information and the
Offering Memorandum, none of them will be, an “investment company” or an entity
“controlled” by an “investment company” within the meaning of the Investment
Company Act.

 

(20)                            Neither
the issuance, sale and delivery of the Securities nor the application of the
proceeds thereof by the Issuer as described in each of the Time of Sale
Information and the Offering Memorandum will violate Regulation T, U or X of
the Board of Governors of the Federal Reserve System.

 

(21)                            Assuming
the accuracy of the representations, warranties and agreements of Symmetry, the
Issuer, Novamerican Steel, the Guarantors and the Initial Purchasers contained
in the Purchase Agreement and the Joinder Agreement, it is not necessary, in
connection with the issuance and sale of the Securities to the Initial
Purchasers and the offer, resale and delivery of the Securities by the Initial
Purchasers in the manner contemplated by the Purchase Agreement, the Time of
Sale Information and the Offering Memorandum, to register the Securities under
the 

 

4

 

Securities Act
or to qualify the Indenture under the Trust Indenture Act, it being understood
that no opinion is expressed as to any subsequent resale of any of the
Securities.

 

(22)                            The
Collateral Agreement is effective to create in favor of the U.S. Collateral
Agent, for the benefit of the Secured Parties, a security interest in the
Collateral described therein in which a security interest may be created
under Article 9 of the New York UCC.

 

(23)                            Upon
delivery to the U.S. Collateral Agent in the State of New York of all
certificates evidencing the Pledged Securities described on Annex C
hereto (such certificates, the “Certificates”), issued or endorsed in
the name of the U.S. Collateral Agent or in blank or together with stock powers
or note powers properly executed in the name of the U.S. Collateral Agent or in
blank, the security interest in such Pledged Securities described on Annex C
hereto in favor of the U.S. Collateral Agent, for the benefit of the Secured
Parties, will be perfected and assuming that the U.S. Collateral Agent has
taken possession of the Certificates and such accompanying endorsements or
powers without notice, at or prior to the time of delivery thereof to the U.S.
Collateral Agent, of any adverse claim within the meaning of Section 8-102(a)(i) of
the New York UCC, the U.S. collateral Agent has acquired a security interest in
such Pledged Securities free of any adverse claim.

 

(24)                            The UCC-1 financing
statements (the “Financing Statements”) in the forms attached as Annex
D hereto are in appropriate form for filing in the office of the
Secretary of the State of Delaware (the “Delaware Filing Office”). Upon
filing of the Financing Statements in the Delaware Filing Office, the security
interest of the U.S. Collateral Agent, for the benefit of the Secured Parties,
in the Collateral described therein will be perfected under the UCC in effect
in the State of Delaware (the “Delaware UCC”) to the extent that a
security interest in such Collateral can be perfected by the filing of a
financing statement in the Delaware Filing Office.

 

5

 

ANNEX D-2

 

[Form Of Opinion of Davies Ward Phillips & Vineberg LLP
And Stewart
Mckelvey](3)

 

(1)                                  Novamerican is a corporation
amalgamated under the Canada Business Corporations
Act.

 

(2)                                  632421 N.B. Ltd. (“632421”) is a
corporation incorporated under the New Brunswick Business
Corporations Act.

 

(3)                                  632422
N.B. Ltd. (“632422”) is
a corporation incorporated under the New Brunswick Business
Corporations Act.

 

(4)                                  The authorized capital of
Novamerican consists of an unlimited number of common shares and an unlimited
number of preferred shares. Novamerican Steel Finco Inc. is the registered
holder of [   ] common
shares of Novamerican, which represents all of the issued and outstanding share
capital of Novamerican (the “Novamerican Pledged Shares”).

 

(5)                                  All necessary corporate action has
been taken by Novamerican to authorize the pledge and transfer of the
Novamerican Pledged Shares(4) in favour of the U.S. Collateral Agent, for
the benefit of the Secured Parties, pursuant to the US Collateral Agreement.(5)

 

(6)                                  The authorized capital of 632422
consists of an unlimited number of common shares without nominal or par value. Novamerican
is the registered holder of [   ] common shares of
632422 which represents all of the issued and outstanding share capital of
632422 (the “632422 Pledged Shares”).

 

(7)                                  All necessary corporate action has
been taken by 632422 to authorize the pledge and transfer of the 632422 Pledged
Shares in favour of the Canadian Collateral Agent for the benefit of the
Issuer, pursuant to the Canadian Collateral Agreement.(6)

 

(8)           Each
of Novamerican and 632421 has the corporate power and authority to execute and
deliver each of the Transaction Documents to which it is a party and to perform
its obligations thereunder. All corporate action required to be taken by
Novamerican or 632421, as applicable, for the due and proper authorization,
execution and delivery of each of the Transaction Documents has been duly and
validly taken. (7)

 

(3)          Capitalized terms used but not defined herein
have the meanings ascribed to such terms in the Purchase Agreement (the “Purchase
Agreement”) to which this Annex C is attached.

(4)          This refers to the shares of the Issuer in
Novamerican.

(5)          If the restrictions on transfer are removed,
this opinion is not required.

(6)          If the restrictions on transfer are removed,
this opinion is not required.

(7)          Corporate opinions on 632421 to be given by
NB counsel, where applicable.

 

 

(9)                                  Each of the Intercreditor Agreement,
the Joinder Agreement and the Intercompany Note(s) has been duly executed and
delivered by Novamerican and 632421, as applicable, to the extent that
Applicable Laws(8) apply to such execution and delivery.  (9)

 

(10)                            Each of the Canadian Security
Documents to which Novamerican is a party has been duly executed and delivered
by Novamerican and constitutes a legal, valid and binding obligation of
Novamerican enforceable against Novamerican in accordance with its terms.

 

(11)                            The Intercompany Note(s) to which
632421 is a party has been duly executed and delivered by 632421.

 

(12)                            The execution, delivery and
performance by Novamerican of each of the Transaction Documents to which it is
a party and compliance by Novamerican with the terms thereof and the
consummation of the transactions contemplated by the Transaction Documents and
the Plan of Arrangement does not (i) result in any violation of the
provisions of the articles or by-laws of Novamerican or (ii) result in the
violation of any Applicable Laws.

 

(13)                            The execution, delivery and
performance by 632421 of each of the Transaction Documents to which it is a
party and compliance by 632421 with the terms thereof and the consummation of
the transactions contemplated by the Transaction Documents and the Plan of
Arrangement does not (i) result in any violation of the provisions of the
articles or by-laws of 632421 or (ii) result in the violation of any
Applicable Laws.

 

(14)                            No consent, approval, authorization,
order, registration or qualification of or with any court or governmental or
regulatory authority is required at this time in connection with the execution,
delivery and performance by Novamerican of any of the Transaction Documents to
which it is a party and compliance by Novamerican with the terms thereof and
the consummation of the transactions contemplated by the Transaction Documents,
other than the registration of the Quebec Hypothec in the relevant registries.

 

(15)                            No consent, approval, authorization,
order, registration or qualification of or with any court or governmental or
regulatory authority is required at this time in connection with the execution,
delivery and performance by 632421 of any of the Transaction Documents to which
it is a party and compliance by 632421 with the terms thereof and the
consummation of the transactions contemplated by the Transaction Documents.

 

(16)                            The Arrangement is effective as of
the date hereof in accordance with subsection 192(8) of the Canada Business Corporations Act.

 

(17)                            By virtue of Applicable Laws,
Novamerican is liable for all of the obligations of 632421 under the
Intercompany Note(s).

 

(18)                            The Canadian Collateral Agreement
creates valid security interests in favour of the Canadian Collateral Agent, in
the Intercompany Note Collateral to which the Ontario Personal Property Security Act (Ontario) (“PPSA”) applies in which
Novamerican now has 

 

(8)          To be defined in each opinion.

(9)          Corporate opinions on 632422 to be
given by NB counsel, where applicable.

 

2

 

rights to secure payment and performance of
its obligations under the Intercompany Note(s) and is sufficient to create
valid security interests in favour of the Collateral Agent in the Intercompany
Note Collateral to which the PPSA applies in which Novamerican hereafter
acquires rights when those rights are acquired by Novamerican, securing payment
and performance of the obligations under the Intercompany Note.

 

(19)                            The security interest of the U.S.
Collateral Agent in the Novamerican Pledged Shares represented by certificated
securities (as defined in the Securities
Transfer Act, 2006 (Ontario)) has been perfected by control (as
defined in the Securities Transfer Act, 2006
(Ontario)) of the Novamerican Pledged Shares by the U.S. Collateral Agent and
accordingly the security interest of the U.S. Collateral Agent has priority
over any other security interest in the Novamerican Pledged Shares to which the
PPSA applies.(10)

 

(20)                            The security interest of the
Canadian Collateral Agent in the 632422 Pledged Shares represented by
certificated securities (as defined in the Securities Transfer Act,
2006 (Ontario)) has been perfected by control (as defined in the Securities Transfer Act, 2006 (Ontario)) and accordingly the
security interest of the Canadian Collateral Agent has priority over any other
security interest in the 632422 Pledged Shares to which the PPSA applies.(11)

 

(21)                            Upon registration of the Canadian
Mortgage at the relevant land registry office, the charge created thereunder
will constitute a good and valid charge, enforceable against the mortgagee in
accordance with its terms to secure payment and performance of the obligations
of Novamerican under the Intercompany Note(s).

 

(22)                            The Quebec Hypothec creates a valid
hypothec in favour of the Canadian Collateral Agent, as fondé de pouvoir, up to a principal amount
of CDN$400,000,000.00 with interest thereon at the rate of  25% per annum in the Charged Property (as
defined in the Quebec Hypothec) to secure the payment and performance of
Novamerican’s obligations under the Intercompany Note(s).

 

(23)                            Registration has been made in all
public offices provided under the laws of Ontario as are necessary to preserve,
protect or perfect the security interest created under the Canadian Collateral
Agreement. No further or subsequent filings, recordings or registrations in the
Province of Ontario are necessary in order to preserve or perfect the security
interests created by the Canadian Collateral Agreement.(12)

 

(24)                            Attached as a schedule to this
opinion is a report showing the results of the searches conducted in the public
offices and registries in Ontario under the statutes specified therein against
the current legal name of Novamerican and all former names of Novamerican
disclosed by such counsel’s corporate search and of its predecessors by
amalgamation and current as of the respective currency dates indicated therein.
Such statutes are the only statutes of Ontario where liens of the types
expressed to be created by or under the Canadian Collateral Agreement in
personal property would ordinarily or customarily be the subject of a filing, 

 

(10)    This opinion to be given if it has
been determined that perfection by control occurs in Ontario.

(11)    This opinion to be given if it has
been determined that perfection by control occurs in Ontario.

(12)    Note that confirmation of
registration of the Quebec Hypothec will only become available after the
issuance of this opinion. Similar opinion to be provided by Quebec counsel once
Quebec Hypothec is registered.

 

3

 

registration or recording in order to create,
preserve, perfect and protect the liens expressed to be created thereby or
thereunder. The only filings, registrations or recordings against the current
or former names of Novamerican disclosed by such searches are set out in such
schedule.

 

(25)                            In any proceeding in a court of
competent jurisdiction in the Province of Ontario (an “Ontario Court”) for the
enforcement of the Transaction Documents(13), the Ontario Court would apply the
laws of the State of New York (“New York Law”), in accordance with the parties’
choice of New York Law in the Transaction Documents, to all issues which under
the conflict of laws rules of the Province of Ontario are to be determined
in accordance with the proper law of a contract, provided that:

 

(a)                                  the parties’ choice of New York Law in the Transaction Documents is bona fide and legal and there is no reason
for avoiding the choice on the grounds of public policy, as such criteria would
be applied by the Ontario Court; and

 

(b)                                 in any such proceeding, and notwithstanding the parties’ choice of
New York Law in the Transaction Documents, the Ontario Court:

 

	
   

  	
  (i)

  	
  will not take judicial notice
  of the provisions of New York Law, but will only apply such provisions if
  they are pleaded and proven by expert testimony;

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  will apply Applicable Laws
  that under Applicable Laws would be characterized as procedural and will not
  apply any New York Law that under Applicable Laws would be characterized as
  procedural;

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  will apply provisions of
  Applicable Laws that have overriding effect;

  
	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
  will not apply any New York
  Law if its application would be contrary to public policy, as such term is
  interpreted under Applicable Laws (“Public Policy”);

  
	
   

  	
   

  	
   

  
	
   

  	
  (v)

  	
  will not apply any New York
  Law if such application would be characterized under Applicable Laws as the
  direct or indirect enforcement of a foreign revenue, expropriatory, penal or
  other public law; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (vi)

  	
  will not enforce the
  performance of any obligation that is illegal under the laws of any
  jurisdiction in which the obligation is to be performed.

  

 

(26)                            An Ontario Court would give a
judgment based upon a final and conclusive in
personam judgment of a court exercising jurisdiction in the State of
New York (a “New York Court”) for a sum certain, obtained against the
Corporation with respect to a claim arising out of the Transaction Documents (a “New
York Judgment”), without reconsideration of the merits(14):

 

(a)                                  provided that:

 

(13)    This opinion should be limited to documents
governed by New York law.

(14)    This opinion should be limited to documents where
there is submission to a New York court.

 

4

 

	
   

  	
  (i)

  	
  an action to enforce the New
  York Judgment is commenced in the Ontario Court within any applicable
  limitation period;

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  the Ontario Court has
  discretion to stay or decline to hear an action on the New York Judgment if
  the New York Judgment is under appeal or there is another subsisting judgment
  in any jurisdiction relating to the same cause of action as the New York
  Judgment;

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  the Ontario Court will render
  judgment only in Canadian dollars; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
  an action in the Ontario Court
  on the New York Judgment may be affected by bankruptcy, insolvency or
  other laws affecting the enforcement of creditors’ rights generally; and

  
	
   

  	
   

  	
   

  
	
  (b)                                 subject to the following defences:

  
	
   

  
	
   

  	
  (i)

  	
  that the New York Judgment
  was obtained by fraud or in a manner contrary to the principles of natural
  justice;

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  that the New York Judgment is
  for a claim which under Applicable Laws would be characterized as based on a
  foreign revenue, expropriatory, penal or other public law;

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  that the New York Judgment is
  contrary to Public Policy or to an order made by the Attorney General of
  Canada under the Foreign Extraterritorial
  Measures Act (Canada) or by the Competition Tribunal under the Competition Act (Canada) in respect of
  certain judgments referred to in these statutes; or

  
	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
  that the New York Judgment
  has been satisfied or is void or voidable under New York Law.

  

 

(27)                            In any proceeding in a court of
competent jurisdiction in the Province of Québec (a “Québec Court”) for the
enforcement of the Transaction Documents, the Québec Court would recognize the
choice of New York Law as the proper law governing the Transaction Documents as
chosen by the parties therein and apply such law to issues which under conflict
of law rules of Québec are to be dealt with in accordance with the
governing law of the Transaction Documents, provided that(15):

 

(c)                                  such choice of law is bona fide
(in the sense that it was not made with a view to avoiding the consequences of
the laws of any other jurisdiction) and such choice of law is not manifestly
inconsistent with public order, as that term is understood in international
relations by a Québec Court  (Article 3081
C.C.Q.); and

 

(d)                                 in any such proceeding, and notwithstanding the parties’ choice of
New York Law:

 

(15) This opinion should be limited to documents governed by New York
law.

 

5

 

	
   

  	
  (i)

  	
  the Québec Court will not
  take judicial notice of the New York Law unless it has been pleaded and its
  content established and, if required by the Québec Court, proof of such New
  York Law has been made by, among other means, expert testimony or the
  production of a certificate drawn up by a jurisconsult
  (Article 2809 C.C.Q.);

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  the Québec Court will not
  apply the provisions of New York Law if their application would be manifestly
  inconsistent with public order as understood in international relations
  (Article 3081 C.C.Q.);

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  if the Transaction Documents
  contain no foreign element, they will be subject to the mandatory provisions
  of the law of the jurisdiction which would apply if none were designated
  (Article 3111 para. 2 C.C.Q.);

  
	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
  evidence will be governed by
  the law applicable to the merits of the dispute, subject to any rules of
  the Québec Court which are more favourable to the establishment of evidence
  (Article 3130 C.C.Q.);

  
	
   

  	
   

  	
   

  
	
   

  	
  (v)

  	
  matters of procedure will be
  governed by the laws of the Province of Québec (Article 3132 C.C.Q.);

  
	
   

  	
   

  	
   

  
	
   

  	
  (vi)

  	
  the Québec Court will apply
  provisions of the laws of the Province of Québec and the federal laws of
  Canada applicable therein, that have overriding effect (Article 3076
  C.C.Q.); and

  
	
   

  	
   

  	
   

  
	
   

  	
  (vii)

  	
  the Québec Court will not
  directly or indirectly enforce the obligations resulting from the taxation
  laws of foreign jurisdictions unless in such foreign jurisdictions the
  obligations resulting from the taxation laws of Québec are recognized and
  enforced.

  

 

(28)                            Upon a motion brought before it, a
Québec Court would recognize and declare enforceable a final and enforceable
civil judgment in personam, not
subject to ordinary remedy, for a sum certain of a New York Court against the parties
to the Transaction Documents in connection with an action arising out of said
Transaction Documents if(16):

 

(e)                                  the New York Court rendering such judgment had jurisdiction, as
recognized by the Québec Court (Article 3155(1) C.C.Q.);

 

(f)                                    such judgment was not obtained by fraud or in a manner contrary to
natural justice or in contravention of the fundamental principles of procedure
(Article 3155(3) C.C.Q.);

 

(g)                                 a dispute between the same parties, based on the same facts and
having the same object, has not given rise to a decision rendered in the
Province of Québec, whether it has acquired the authority of a final judgment (res judicata) or not, or is not pending
before a Québec authority, in the first instance, or has been decided 

 

(16) This opinion should be limited to documents where there is
submission to a New York court.

 

6

 

in another jurisdiction but the decision does
not meet the necessary conditions for recognition in the Province of Québec (Article 3155(4) C.C.Q.);

 

(h)                                 the outcome of such foreign judgment is not manifestly inconsistent
with public order as understood in international relations (Article 3155(5) C.C.Q.)
or contrary to any order made by the Attorney General of Canada under the Foreign Extraterritorial Measures Act
(Canada) or by the Competition Tribunal under the Competition Act (Canada) in respect of certain judgments
referred to in these statutes;

 

(i)                                     such judgment does not
directly or indirectly enforce obligations arising from taxation laws of
foreign jurisdictions unless in such foreign jurisdictions the obligations
resulting from the taxation laws of Québec are recognized and enforced, or
arising from other laws of a public nature, such as expropriatory or penal laws
(Article 3155(6) and 3162 C.C.Q.); and

 

(j)                                     the motion to enforce such judgment is commenced in the Province of
Québec within applicable limitation periods in the Province of Québec.

 

(29)                            The distribution of the Securities
by the Initial Purchasers to purchasers in each of the provinces of [   ] will be
exempt from the prospectus requirements of the applicable Canadian securities
laws and no filing, proceeding, approval, consent or authorization is required
to be made, taken or obtained under said securities laws to permit the
distribution by the Initial Purchasers of the Securities to the purchasers in
each such province, other than such filings as are required to be made pursuant
to National Instrument 45-106 – Prospectus and Registration Exemptions.

 

(30)                            The first trade of the Securities in
each of the provinces of [   ], other than a trade
which is otherwise exempt under applicable Canadian securities laws, will be a
distribution but will not be subject to the prospectus requirements of such
securities laws, provided that at the date of such trade:

 

(k)                                    The Issuer is and has been a reporting issuer in a jurisdiction of
Canada for the four months immediately preceding the date of such first trade;

 

(l)                                       at least four months and one day have elapsed from the “distribution
date” (as such term is defined in National Instrument 45-102 - Resale of
Securities (“NI 45-102”) of the Securities;

 

(m)                                 the certificates representing the Securities carry the legend, or an
ownership statement issued under a direct registration system or other
electronic book-entry system acceptable to the regulator bears a legend
restriction notation, to the effect provided by Section 2.5(2)3(b) of
NI 45-102;

 

(n)                                   the trade is not a “control distribution” (as such term is defined
in NI 45-102);

 

7

 

(o)                                 no unusual effort is made to prepare the market or to create a
demand for the Securities that are the subject of the trade;

 

(p)                                 no extraordinary commission or consideration is paid to a person or
company in respect of the trade;

 

(q)                                 if the selling security holder is an “insider” or “officer” of the
Issuer (as such terms are defined under the applicable securities laws), the
selling security holder has no reasonable grounds to believe that the Issuer is
in default of “securities legislation” (as such term is defined in National
Instrument 14-101 (“NI 14-101”)); and

 

(r)                                    in the case of the first trades subject to the securities laws of
the Province of Manitoba, the trade is not a “control distribution” as such
term is defined in NI 45-102 and is not a transaction involving a purchase or
sale or a repurchase or resale that is incidental to a “primary distribution to
the public” as defined under the securities laws of the Province of Manitoba.

 

In
rendering such opinion, such counsel may rely as to matters of fact on
certificates of responsible officers of Novamerican and public officials that
are furnished to the Initial Purchasers. Such opinion shall include customary
qualifications, limitations and assumptions.(17)

 

The opinion of Davies Ward Phillips & Vineberg LLP described
above shall be rendered to the Initial Purchasers at the request of Novamerican
and shall so state therein.

 

(17) Davies will
rely on New Brunswick counsel for New Brunswick opinions, where applicable.

 

8

 

ANNEX D-3

 

[Form of Opinion of
Nutter, McClennen & Fish, LLP](18)

 

1.                                       American
Steel and Aluminum Corporation, a Massachusetts corporation (“MA Guarantor”) is validly existing as a corporation under
Massachusetts law and in good standing with the Secretary of The Commonwealth
of Massachusetts, is authorized to transact business as a foreign corporation
in the states listed on Schedule 3. MA Guarantor has the corporate power (i) to
own its properties and conduct its business as described in the Preliminary
Offering Memorandum and the Offering Memorandum and (ii) to execute and
deliver the Transaction Documents in which it is named as a party and to perform its
obligations thereunder.

 

2.                                       MA
Guarantor has duly authorized, executed, and delivered the Transaction
Documents in which it is named as a party, and such Transaction Documents
constitute its valid and binding agreements enforceable against it in
accordance with their terms.

 

3.                                       The
execution and delivery by each of the MA Guarantor of the Transaction Documents
to which it is a party does not and the performance by it of its obligations
thereunder will not (i) violate Massachusetts law or federal law, (ii) to
our knowledge violate any court order, judgment, or decree applicable to the MA
Guarantor, or (iii) violate its charter or by-laws.

 

4.                                       All the outstanding shares of capital stock or
other equity interests of the MA Guarantor have been duly and validly
authorized and issued, are fully paid and are non-assessable.

 

5.                                       No
consent, approval, license, or exemption by, or order or authorization of, or
filing, recording, or registration with, any governmental authority is required
to be obtained by the MA Guarantor in connection with the execution and
delivery of the Transaction Documents to which it is a party or the performance
by it of its obligations thereunder, except as provided in paragraphs 6 and 7
hereof.

 

6.                                       The
provisions of the Collateral Agreement are effective under the Uniform Commercial
Code as in effect in The Commonwealth of Massachusetts (the “UCC”) to create a valid security interest
in the Collateral Agent’s favor in so much of the Collateral (as defined in the
Collateral Agreement) as constitutes personal property to which Article 9
of the UCC is applicable. Under the UCC, while a debtor is located in a
jurisdiction, the local law of that jurisdiction governs the perfection of a
non-possessory security interest by the filing of a financing statement. The MA
Guarantor is located, for purposes of the UCC, in Massachusetts. The UCC-1
financing statements attached hereto as Exhibit B are in
appropriate form for filing with the Massachusetts Secretary of the
Commonwealth. Accordingly, upon the due filing of the UCC-1 financing
statements attached hereto as Exhibit B with the Massachusetts
Secretary of the Commonwealth, in accordance with Section 9-516 of the UCC,
the Collateral Agent will have a perfected security interest in such portion of
the Collateral in which the perfection of a security interest can be effected
by the filing of a financing statement under the UCC.

 

(18) Capitalized terms used but not defined herein have the meanings
ascribed to such terms in the Purchase Agreement (the “Purchase Agreement”)
to which this Annex D-3 is attached.

 

 

7.                                       The MA Mortgages when (A) duly executed
by the president and treasurer (B) notarized and (C) delivered with
the appropriate legal descriptions attached, will:

 

(a)               be in proper form for recording
with the appropriate Registry of Deeds listed on Schedule 1 for the county
in which the Mortgaged Property is located, provided that the MA
Mortgages must be recorded with a certificate of legal existence and good
standing of the MA Guarantor issued by the Secretary of the Commonwealth of
Massachusetts; and

 

(b)              when recorded in the
Registry of Deeds listed on Schedule 1 next to the name of the Mortgaged
Property, create in favor of the Collateral Agent a legal, valid and binding
lien on the real property and fixtures described in each MA Mortgage,
enforceable as such against the MA Guarantor.

 

8.                                       No
taxes or other charges, including, without limitation, intangible or
documentary stamp taxes, mortgage or recording taxes, transfer taxes or similar
charges, are payable to Massachusetts or to any jurisdiction therein on account
of the execution or delivery or recording or filing of the MA Mortgages or any
of the other Transaction Documents or the creation of the indebtedness
evidenced or secured by any of the Transaction Documents, as applicable, except
for nominal filing or recording fees.

 

9.                                       The
recording of the MA Mortgages with the registries of deeds described on Schedule 1
are the only actions, recordings or filings necessary to publish notice and
protect the validity of and to establish of record the rights of the parties
under the MA Mortgages.

 

10.                                 Upon
the assumption that all of the applicable provisions of Massachusetts law
relating to the preservation of the right to seek a deficiency after the
foreclosures of real property have been complied with by the Collateral Agent,
the transfer of all or any portion of the Mortgaged Property in connection with
the exercise of any remedy under the MA Mortgages, including, without
limitation, by way of judicial foreclosure, will not restrict, affect or impair
the liability of the MA Guarantor with respect to the indebtedness secured
thereby or the Collateral Agent’s rights or remedies relating thereto,
including the foreclosure or enforcement of any other security interest or
liens securing such indebtedness, and the laws of Massachusetts do not require
a lienholder to elect to pursue its remedies either against mortgaged real
property or personal property where such lienholder holds security interests
and liens on both real and personal property of a debtor.

 

11.                                 The courts of
Massachusetts will enforce those provisions in the Transaction Documents which
provide that the validity, construction and enforceability of the Transaction
Documents will be governed by the laws of New York, provided, however,
that the courts of Massachusetts may apply the internal law of
Massachusetts to determine the perfection and the effect of perfection or
nonperfection of the liens created under such documents and the application of
remedies in enforcing such liens with respect to property located in
Massachusetts.

 

12.                                 Under
the Massachusetts criminal usury statute, M.G.L. Chapter 271, Section 49 of the General Laws of the Commonwealth of Massachusetts (the
“Massachusetts Usury Statute”), “any
lender subject to control, regulation or examination by any state or federal
regulatory

 

2

 

agency” is exempt
from the provisions thereof. With your permission, we have assumed that each of
the Initial Purchasers is subject to state and/or federal control, regulation
or examination within the meaning of the Massachusetts Usury Statute. Based on
such assumption, the Transaction Documents executed by the MA Guarantor will
not violate the Massachusetts Usury Statute. If all or any portion of the
Securities were transferred to or otherwise held by an entity that is not a “lender subject
to control, regulation or examination by any state or federal regulatory
agency,” we note that subsection (d) of the Massachusetts Usury
Statute provides, in relevant
part, that, subject to compliance
with the further conditions thereof, the provisions of the Massachusetts Usury
Statute “shall not apply to any person who notifies the attorney general of his
intent to engage in a transaction or transactions which . . . would be proscribed [by the Massachusetts Usury Statute] . . . providing [sic] any such person maintains records of any such
transaction.” Accordingly,
assuming the application of currently existing statutory, regulatory, and
decisional law in the Commonwealth of Massachusetts with respect to usury, any
subsequent holder of all or any of the Securities that is not a lender subject
to state or federal regulation would not be subject to the usury prohibition
contained in Massachusetts Usury Statute, provided such holder (i) files
the requisite notice with the Massachusetts Attorney General, (ii) does not publicly advertise
the fact of such notification nor use the fact of such notification to solicit
business (except that such notification may be revealed to an individual upon his inquiry), (iii) maintains
records of the applicable transaction(s) described in the notice, which records
must contain the name and address of the applicable borrower(s), the amount
borrowed, the interest and expenses to be paid by the applicable borrower(s),
the date that each loan is made and the date or dates on which any payment is
due, (iv) makes such records available to the Attorney General of
Massachusetts for the purposes of inspection upon any request received from the
Attorney General, (v) notifies the Attorney General if such holder’s name
and/or address changes and (vi) renews such notification prior to the second anniversary of the
filing thereof.

 

13.                                 Entering into the
Transaction Documents with the MA Guarantor will not in and of itself cause the
Collateral Agent or any Initial Purchaser to be found to be transacting
business (requiring that they register under Massachusetts corporate law as a
foreign corporation) or doing banking business in Massachusetts.

 

3

 

Exhibit A

 

[FORM OF REGISTRATION
RIGHTS AGREEMENT]

 

 

Exhibit B

 

[Form of Joinder
Agreement]

 

$315,000,000

 

NOVAMERICAN STEEL FINCO INC.

 

11.5% Senior Secured Notes due
2015

 

JOINDER TO THE
PURCHASE AGREEMENT

 

J.P. Morgan Securities Inc.

As Representative of the

several Initial Purchasers listed

in Schedule 1 to the Purchase Agreement

c/o J.P. Morgan Securities Inc.

270 Park Avenue

New York, New York 10017

 

Ladies and Gentlemen:

 

Reference is made to the Purchase Agreement
dated November 14, 2007 (the “Purchase Agreement”), among
Novamerican Steel Finco Inc., a Delaware corporation (the “Issuer”),
Symmetry Holdings Inc., a Delaware corporation, Novamerican Steel Holdings
Inc., a Delaware corporation, and J.P. Morgan Securities Inc., as
representative for the several initial purchasers listed in Schedule 1
thereto (the “Initial Purchasers”), concerning the purchase of the
Securities (such term and each other capitalized term used but not defined
herein having the meaning assigned to it in the Purchase Agreement) from the
Issuer by the Initial Purchasers. This Joinder Agreement (this “Agreement”)
is the Joinder Agreement referred to in Section 6(n) of the Purchase
Agreement.

 

Each of the Issuer, Novamerican Steel and the
Guarantors agree that this Agreement is being executed and delivered in
connection with the issue and sale of the Securities pursuant to the Purchase
Agreement and to induce the Initial Purchasers to purchase the Securities
thereunder. This Agreement is being executed on the Closing Date, concurrently
with the consummation of the sale of Securities pursuant to the Purchase Agreement
and the consummation of the other Transactions.

 

1.                                       Joinder. Each
of Novamerican Steel and the Guarantors listed on Schedule 1 hereto hereby
agrees to be become bound by the terms, conditions and other provisions of the
Purchase Agreement as Novamerican Steel or a Guarantor, as applicable, with all
attendant rights, duties and obligations stated therein, with the same force
and effect as if originally named therein as a party and as if such party
executed the Purchase Agreement on the date thereof.

 

 

2.                                       Representations,
Warranties and Agreements of the Issuer, Novamerican Steel and the Guarantors. The
Issuer, Novamerican Steel and the Guarantors, jointly and severally, represent
and warrant to, and agree with, each Initial Purchaser on and as of the date
hereof that:

 

(a)                                  Each
of the Issuer, Novamerican Steel and the Guarantors has the corporate or other
organizational power to execute and deliver this Agreement and all corporate or
other organizational action required to be taken by each of them for the due
and proper authorization, execution, delivery and performance of this Agreement
and the consummation of the transactions contemplated hereby has been duly and
validly taken; this Agreement has been duly authorized, executed and delivered
by each of the Issuer, Novamerican Steel and the Guarantors and constitutes a
valid and legally binding agreement of each of the Issuer, Novamerican Steel
and the Guarantors, enforceable against each of the Issuer, Novamerican Steel
and the Guarantors in accordance with its terms, subject to the Enforceability
Exceptions;

 

(b)                                 the
representations, warranties and agreements set forth in Section 3 of the
Purchase Agreement are true and correct on and as of the date hereof; and

 

(c)                                  Nothing
has come to the attention of the Issuer or any of the Guarantors that has
caused the Issuer or any of the Guarantors to believe that the statistical and
market-related data included in each of the Time of Sale Information and the
Offering Memorandum is not based on or derived from sources that are reliable
and accurate in all material respects.

 

3.                                       GOVERNING LAW.
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK.

 

4.                                       Consent to
Jurisdiction. Any legal suit, action or proceeding arising out of or based
upon this Agreement or the transactions contemplated hereby (the “Related
Proceedings”) may be instituted in the federal courts of the United
States located in the City and County of New York or the courts of the State of
New York in each case located in the City and County of New York (collectively,
the “Specified Courts”), and each party irrevocably submits to the
exclusive jurisdiction (except for suits, actions, or proceedings instituted in
regard to the enforcement of a judgment of any Specified Court in a Related
Proceeding (each such judgment, a “Related Judgment”), as to which such
jurisdiction is non-exclusive) of the Specified Courts in any Related
Proceeding. Service of any process, summons, notice or document by mail to such
party’s address set forth above shall be effective service of process for any
Related Proceeding brought in any Specified Court. The parties irrevocably and
unconditionally waive any objection to the laying of venue of any Specified
Proceeding in the Specified Courts and irrevocably and unconditionally waive
and agree not to plead or claim in any Specified Court that any Related
Proceeding brought in any Specified Court has been brought in an inconvenient
forum. Each party not located in the United States irrevocably appoints CT
Corporation System as its agent to receive service of process or other legal
summons for purposes of any Related Proceeding that may be instituted in
any Specified Court.

 

2

 

5.                                       Waiver of
Immunity. With respect to any Related Proceeding, each party irrevocably
waives, to the fullest extent permitted by applicable law, all immunity
(whether on the basis of sovereignty or otherwise) from jurisdiction, service
of process, attachment (both before and after judgment) and execution to which
it might otherwise be entitled in the Specified Courts and, with respect to any
Related Judgment, each party waives any such immunity in the Specified Courts
or any other court of competent jurisdiction and will not raise or claim or
cause to be pleaded any such immunity at or in respect of any such Related
Proceeding or Related Judgment, including, without limitation, any immunity
pursuant to the United States Foreign Sovereign Immunities Act of 1976, as
amended.

 

6.                                       Judgment
Currency. If for the purposes of obtaining judgment in any court it is
necessary to convert a sum due hereunder into any currency other than U.S.
dollars, the parties hereto agree, to the fullest extent that they may effectively
do so, that the rate of exchange used shall be the rate at which in accordance
with normal banking procedures the Initial Purchasers could purchase U.S.
dollars with such other currency in New York City on the business day preceding
that on which final judgment is given. The obligations of the Issuer,
Novamerican Steel and each Guarantor in respect of any sum due from them to any
Initial Purchaser shall, notwithstanding any judgment in any currency other
than U.S. dollars, not be discharged until the first business day, following
receipt by such Initial Purchaser of any sum adjudged to be so due in such
other currency, on which (and only to the extent that) such Initial Purchaser may in
accordance with normal banking procedures purchase U.S. dollars with such other
currency; if the U.S. dollars so purchased are less than the sum originally due
to such Initial Purchaser hereunder, the Issuer, Novamerican Steel and each
Guarantor agree, as a separate obligation and notwithstanding any such
judgment, to indemnify such Initial Purchaser against such loss. If the U.S.
dollars so purchased are greater than the sum originally due to such Initial
Purchaser hereunder, such Initial Purchaser agrees to pay to the Issuer,
Novamerican Steel and the Guarantors (but without duplication) an amount equal
to the excess of the U.S. dollars so purchased over the sum originally due to
such Initial Purchaser hereunder.

 

7.                                       Counterparts.
This Agreement may be signed in counterparts (which may include
counterparts delivered by any standard form of telecommunication), each of
which shall be an original and all of which together shall constitute one and
the same instrument.

 

8.                                       Amendments or
Waivers. No amendment or waiver of any provision of this Agreement, nor any
consent or approval to any departure therefrom, shall in any event be effective
unless the same shall be in writing and signed by the parties hereto.

 

9.                                       Headings.
The headings herein are inserted for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of,
this Agreement.

 

3

 

If the foregoing is in accordance with your
understanding, please indicate your acceptance of this Agreement by signing in
the space provided below.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  NOVAMERICAN STEEL FINCO INC.,

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SYMMETRY HOLDINGS INC.,

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOVAMERICAN STEEL HOLDINGS INC.,

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INTEGRATED STEEL INDUSTRIES, INC.,

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  AMERICAN STEEL AND ALUMINUM

  
	
   

  	
  CORPORATION,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOVA TUBE AND STEEL, INC.,

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

4

 

	
   

  	
  NOVAMERICAN STEEL INC.,

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOVAMERICAN TUBE HOLDINGS, INC.,

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOVA TUBE INDIANA, LLC,

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

Accepted: November 15, 2007

 

J.P. MORGAN SECURITIES INC.

 

For itself and on behalf of the

several Initial Purchasers listed

in Schedule 1 to the Purchase Agreement.

 

	
  By

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  	
   

  

 

5

 

Schedule 1

 

Joining
Parties

 

Integrated Steel Industries, Inc.

 

American Steel and Aluminum Corporation

 

Nova Tube and Steel, Inc.

 

Novamerican Tube Holdings, Inc.

 

Nova Tube Indiana, LLC

 

Novamerican Steel Inc.

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