Document:

EX-10-M: CONSULTING AGREEMENT

 

Exhibit 10-M

***indicates where a confidential portion has been omitted and filed separately with the Commission.

December 21, 2001

CONSULTING AGREEMENT

         THIS CONSULTING AGREEMENT (this “Agreement”), is entered into effective as of
the first day of February, 2002, between Dana Corporation (including its
subsidiaries and affiliates) (“Dana”) and Edward J. Shultz (“Consultant”).

RECITALS

         WHEREAS, Dana desires to obtain for Dana the services of Consultant, and
Consultant desires to make available to Dana such services, experience and
knowledge during the term of this Agreement, all on the terms and subject to
the conditions set forth herein; and

         WHEREAS, Consultant is willing to enter into this Agreement in consideration of
the benefits which Consultant will receive under the terms and conditions
hereof.

AGREEMENTS

         NOW, THEREFORE, in consideration of the promises and mutual covenants contained
herein and intending to be legally bound hereby, the parties hereto agree as
follows:

         1.     Retention as Consultant. Dana hereby retains Consultant to render certain
consulting and advisory services to Dana and Consultant hereby agrees to
perform the services described herein.

         2.     Duties of Consultant. During the period described in Section 6, Consultant
shall serve as a consultant to Dana to provide general advisory services in
connection with the operations of Dana Credit Corporation and its subsidiaries
(“DCC”), (other than with respect to issues related to the day-to-day
operations of DCC) and the sales of the assets or businesses of DCC including
background information and advice and historical context of the businesses of
DCC. At all times during the term of this Agreement, Consultant shall make
himself reasonably available to Dana, shall undertake his efforts in good faith
on behalf of the best interests of Dana, and shall devote sufficient time and
resources to provide the services described herein.

         3.     Consulting Fee. Subject to Sections 6 and 7, Consultant shall receive an
annual consulting fee (“Consulting Fee”) as set forth below:

                           (a) Initial Payment Period. During the initial payment period, which shall
commence on February 1, 2002 and end on the earliest of (i) December 31, 2003;
(ii) the Closing Date of a Platform Sale; or (iii) the termination date of this
Agreement pursuant to Section 7, Consultant shall be paid at an annual rate of
$610,000.

                           (b) Extended Payment Period. During the extended payment period, if any, which
shall commence on the Closing Date of a Platform Sale that occurs on or prior
to December 31, 2002, and end on the earlier of (i) the third anniversary of
such Closing Date; or (ii) the termination date of this Agreement pursuant to
Section 7, Consultant shall be paid at an

 

***  indicates where a confidential
portion has been omitted and filed separately with the
Commission.

December 21, 2001

annual rate of $ *** . In
the event a Platform Sale Closing Date does not occur by December 31, 2002,
there will be no extended payment period.

                           The Consulting Fee shall be paid in quarterly installments with the first
payment to be made on April 30, 2002, and with the final payment pro-rated for
the portion of the final payment period if it is less than three months.

         4.     Performance Incentive Payment. Consultant is eligible for the Performance
Incentive Payment (“PI Payment” or “PIP”) as described in the following
subsections.

                           (a) Amount of Payment. The payment of the PI Payment is subject to subsections (b)
and (c) below. The PIP is determined in accordance with Schedule A attached
hereto and made a part of this Agreement; provided, however, that if the
business of DCC is sold in a Platform Sale (as defined below), at a price
mutually agreeable to Dana and the CEO or COO of DCC, the PIP shall be equal to
the greater of (i) $ *** or (ii) the amount that would be earned under
subsection (b) below.

                           (b) Payment Dates. The PI Payment will be paid as described in items (i) or (ii)
as applicable.

		
	 	         (i) Quarterly Installments. The PIP will be paid in quarterly
installments as shown below:

	 	 	 	 	 	 	 	 	 
	Profits Period	 	Dates	 	Payment Date
	1	 	October 1, 2001, through March 31, 2002	 	April 30, 2002
	
	
	
	

	2	 	October 1, 2001, through June 30, 2002	 	July 30, 2002
	
	
	
	

	3	 	October 1, 2001, through September 30, 2002	 	October 31, 2002
	
	
	
	

	4	 	October 1, 2001, through December 31, 2002	 	January 31, 2003

		
	 	The portion of the PIP paid for each Profits Period (“Quarterly

Payout”) shall be calculated using the cumulative After-Tax Profits

(as defined below) for the applicable Profits Period in accordance

with the following formulas:

For Profits Periods 1 through 3

	 	 	 	 	 

[(Applicable Profits Period
PIP) divided by 2]  —  Total prior Quarterly
Payouts

For Profits Period 4:

(Profits Period 4 PIP) – Total prior Quarterly Payouts

2

 

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Commission.

December 21, 2001

	 
	(ii) Two Installments. If there is a Platform Sale, the minimum
PIP is $ *** and the payment of the PIP or the
remaining PIP shall be made in two installments. The first
installment (equal to 50% of the PIP minus any Quarterly
Payouts made in accordance with (i) above prior to the
Closing Date (as defined below)) will be paid on or as soon
as practicable after the Closing Date and the second
installment (equal to the other 50% of the PIP) will be paid
following the expiration of six months after the Closing
Date.

                           (c)          Payment Conditions. The payment of the PIP is subject to the following
conditions :

		
	 	         First, the PIP will not be earned or paid unless DCC’s PAT (as
defined below) for the period from October 1, 2001, through
December 31, 2002, is at least $ *** (subject to any
adjustments described in the definition of PAT
and in the note to Schedule A). Notwithstanding the prior
sentence, once any PIP payment is made pursuant to a Quarterly
Payout, it is not subject to repayment.
	 
	 	         Second, this Agreement cannot have been terminated for Cause
(as defined below).
	 
	 	         Third, subject to Section 7(b), upon the termination of this
Agreement, no unearned PIP will be payable.

                           (d)        Definitions. For purposes of this Agreement, the terms “After-Tax Profits” or
“PAT,” “Cause,” “Closing Date,” and “Platform Sale” mean as follows:

	 
	(i) “After-Tax
Profits” or “PAT” means the consolidated net
income of DCC on an after-tax basis determined in accordance
with Generally Accepted Accounting Principles, consistently
applied for the period from October 1, 2001, through December
31, 2002. For the purpose of determining PAT: (1) PAT is
inclusive of any gains realized from the sales of the
businesses or assets of DCC. Any capital gains recognized
will be recorded without any tax expense. All other gains
will be taxed at the appropriate federal statutory tax rate.
(2) No tax reserves will be taken into income for purposes of
determining PAT unless otherwise approved by Dana’s CFO or
Vice President-Finance. (3) Credit reserves that are in
excess of $ *** will be retained in DCC and will be
taken into income for purposes of determining PAT. (4) With
the exception of the retained assets identified on Schedule B
attached hereto, any other assets remaining at December 31,
2002, will be adjusted to current realizable value (as
approved by Dana’s CFO or Vice President-Finance) and such
adjustment will be reflected in PAT. (5) Investment banking
fees, any Performance Incentive Payments under this Agreement
and any similar payments made to employees in connection with
the sale of DCC will not be used in

3

 

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December 21, 2001

	 
	
	
	
	

	determining PAT. (6) Legal fees relating to the sale of the
assets or businesses of DCC or a Platform Sale and which are
specifically authorized and approved by Dana’s General
Counsel, will not be used in determining PAT. All other
legal fees incurred in connection with the normal operations
of DCC will be used in determining PAT.
	
	
	
	

	
	
	
	

	
	
	
	

	PAT is subject to adjustment for the sales of the assets of
DCC which occur prior to their scheduled lease termination.
PAT will be reduced by the after-tax lease income (net of
depreciation in the case of an operating lease) or interest
income (in the case of a loan) that would otherwise have been
recognized for the period from the date of the sale of such
assets to December 31, 2002. PAT will be increased by the
after-tax interest expense savings from the date of the sale
of such assets to December 31, 2002, to the extent that the
sale proceeds are used to retire DCC debt. PAT will be
adjusted quarterly within 15 days of the last day of each
quarter.
	
	
	
	

	
	
	
	

	
	
	
	

	PAT shall be rounded to the nearest $1 million. PAT shall be
determined (including the amount of any adjustments described
in the prior paragraph) by Dana’s CFO or Vice
President-Finance and verified by PricewaterhouseCoopers.

	 	 	 
	(ii)	 	
“Cause” means: (1) the Consultant’s conviction of a felony; (2) the
Consultant’s willful misconduct or gross negligence in the
performance of his duties; or (3) the Consultant’s breach of a
material term of this Agreement.
	
	
	
	

	
	
	
	

	
	
	
	

	(iii)	 	
“Closing Date" means the closing date of a Platform Sale.
	
	
	
	

	
	
	
	

	
	
	
	

	(iv)	 	
“Platform Sale” means the sale of all of the businesses and assets of DCC
other than those retained assets that are identified on Schedule B
attached hereto; provided, however, that the Vice President-Finance
or CFO of Dana and the CEO or COO of Dana Commercial Credit
Corporation can, by mutual agreement, determine that a substantial
sale of the assets or businesses of DCC is a Platform Sale. In no
event can there be more than one Platform Sale. A Platform Sale is
only effective upon the Closing Date.

         5.     Expenses. Dana shall pay or reimburse Consultant for all reasonable,
verifiable out-of-pocket travel expenses, which expenses shall be approved in
advance by Dana, actually paid or incurred by Consultant in the performance of
Consultant’s duties under this Agreement. Such expenses shall be reimbursed
promptly upon receipt by Dana of expense statements or other supporting
documentation.

         6.     Period of Service. The period for which Consultant will provide services under
this Agreement will commence on February 1, 2002, and, unless earlier
terminated under Section

4

 

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December 21, 2001

7, will continue until the earlier of (i) December 31, 2003, or (ii) the
closing date of the sale of the assets constituting at least 90% of the net
book value of the assets of DCC (other than the retained assets listed on
Schedule B) as of December 31, 2001, determined in accordance with Generally
Accepted Accounting Principles, confirmed by the CFO of Dana and verified by
PricewaterhouseCoopers.

         7.               Termination of this Agreement. Subject to Section 8(h), this Agreement will
continue until terminated under the provisions of (a) or (b) below.

                           (a)          If
this Agreement has not been terminated under Section 7(b), this Agreement
shall continue until the earliest to occur of

		
	 	         (i)          the later of (1) December 31, 2003, or (2) in the event of a
Closing Date of a Platform Sale that occurs on or prior to December
31, 2002, the third anniversary of such Closing Date;

		
	 	         (ii)          the date the Consultant accepts an employment, consulting,
advisory or other working relationship with any entity that has
purchased some or all of the assets or businesses of DCC without
the prior written consent of the CFO of Dana;

		
	 	         (iii)          the date Consultant accepts an employment, consulting,
advisory or other working relationship with the Platform Sale buyer
; or
	 
	 	         (iv)          Consultant’s death, Disability or termination for Cause.

Upon the termination of this Agreement under this Section 7(a), Consultant
shall be entitled to Consulting Fees payable through the last day of the month
coincident with or immediately following the termination of this Agreement.
Consultant also shall be entitled to any PIP that has been earned as of the
date this Agreement terminates under this Section 7(a) but which has not
yet been paid. In the event there is any earned but unpaid PIP on the date
this Agreement terminates, it shall be paid in accordance with the terms and
payment periods described in Section 4 of this Agreement.

                           (b) If this Agreement has not been terminated under Section
7(a), Consultant may elect to terminate this Agreement following the sale of at
least 90% of the net book value of the assets of DCC (other than the retained
assets listed on Schedule B) as of December 31, 2001, determined in accordance
with Generally Accepted Accounting Principles, confirmed by the CFO of Dana and
verified by PricewaterhouseCoopers. Upon the termination of this Agreement by
Consultant under this Section 7(b), Consultant shall be entitled to (i) or (ii)
and (iii) following:

		
	 	         (i)          if Consultant terminates the Agreement during the initial
payment period described in Section 3(a), Consultant shall be
entitled to a lump sum cash payment equal to the present value
(discounted at an interest rate of 7% per annum ) of any remaining
Consulting Fee that would be payable through the end 

5

 

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December 21, 2001

		
	 	of such
initial payment period as if the Agreement were not terminated
under this Section 7(b); or

		
	 	         (ii)          if Consultant terminates the Agreement during the
extended payment period described in Section 3(b), Consultant shall
be entitled to a lump sum cash payment equal to the present value
(discounted at an interest rate of 7% per annum) of any remaining
Consulting Fee that would be payable through the end of such
extended payment period as if this Agreement were not terminated
under this Section 7(b); and

		
	 	         (iii)          Consultant shall be entitled to any PIP that has been
earned as of last day of Profits Period 4 (December 31, 2002)
subject to and payable in accordance with Section 4 of this
Agreement.

                           (c)          For purposes of this Agreement, “Disability” means, a condition which
exists by reason of any medically determinable physical or mental impairment,
which is of a long and continued duration and which renders Consultant unable
to perform the services contracted for in this Agreement.

         8.     Covenants.

                           (a)          Return of Property; Intellectual Property Rights. Consultant agrees that on or
before the termination of this Agreement, he will return all property owned by
Dana, including files, documents, data and records (whether on paper, tapes,
disks, or in any other form, electronic or otherwise). Consultant acknowledges
that Dana is the rightful owner of any programs, ideas, inventions,
discoveries, copyright material, or trademarks that Consultant may have
originated or developed, or assisted in originating or developing, during the
period of this Agreement, where any such origination or development involved
the use of time performing services for Dana or the use of Dana’s resources, or
the exercise of Consultant’s responsibilities for or on behalf of Dana.
Consultant will at all times, both before and after the termination of this
Agreement, cooperate with Dana in executing and delivering documents and taking
any other actions that are necessary or requested by Dana to assist Dana in
patenting, copyrighting, or
registering any programs, ideas, inventions, discoveries, copyright material,
or trademarks, and to vest title thereto in Dana.

                           (b)          Proprietary and Confidential Information. Consultant will at all times
preserve the confidentiality of all proprietary information and trade secrets
of Dana, except to the extent that disclosure of such information is legally
required. The phrase “proprietary information” means information that has not
been disclosed to the public and that is treated as confidential within the
business of Dana including, without limitation, the terms of this Agreement;
strategic or tactical business plans; undisclosed financial data; ideas,
processes, methods, techniques, systems, patented or copyrighted information,
models, devices, programs, computer software, or related information; documents
relating to regulatory matters and correspondence with governmental entities;
undisclosed information concerning any past, pending, or threatened legal
dispute; pricing and cost data; reports and analyses of business prospects;
business transactions which are contemplated or planned; research data;
personnel

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December 21, 2001

information and data; identities of users and purchasers of any of Dana’s
products or services; and other confidential matters pertaining to or known by
Dana, including confidential information of a third party which Consultant
knows or should know Dana is bound to protect.

                           (c)          Prohibited Conduct. During the greater of (i) the period described in Section
7(a)(i) or (ii) the period that begins with the effective date of this
Agreement and ends 36 months thereafter, Consultant, without prior written
consent of Dana, will not: (1) personally engage in Competitive Activities (as
defined below); or (2) work for, own, manage, operate, control, or participate
in the ownership or management of or provide consulting or advisory services to
or permit Consultant’s name to be used in connection with, any individual,
partnership, firm, corporation, or institution engaged in Competitive
Activities, or any company or person affiliated with such person or entity
engaged in Competitive Activities; provided that Consultant’s purchase or
holding, for investment purposes, of securities of a publicly-traded company
shall not constitute “ownership” or “participation in ownership” for purposes
of this subsection so long as his equity interest in any such company is less
than five percent (5%).

                           (d)          Competitive Activities. Except as provided in the second sentence of this
subsection 8(d), for purposes of this Agreement, “Competitive Activities” means
business activities which are the same or similar or competitive with those
engaged in by Dana or which relate to products or services of the same or
similar type as the products or services (i) which are sold (or, pursuant to an
existing business plan, will be sold) to paying customers of DCC, and (ii) for
which Consultant provided services in connection with the planning,
development, management, marketing, or oversight of such products or services.
In addition, “Competitive Activities” includes Consultant accepting an
employment, consulting, advisory or other working relationship with a purchaser
of the assets or businesses of DCC, except with respect to a Platform Sale
buyer if the Platform Sale buyer assumes Dana’s obligations hereunder pursuant
to Section 14; provided, however, that if Consultant terminates this Agreement
under Section 7(b), “Competitive Activities” does not include Consultant
accepting an employment, consulting, advisory or other working relationship
with the purchaser of the assets or businesses of DCC.

                           (e)          Interference With Business Relations. During the greater of (i) the period
described in Section 7(a)(i), or (ii) the period that begins on the effective
date of this Agreement and ends 36 months thereafter, Consultant, without the
written consent of Dana, will not: (1) recruit or solicit any employee of Dana
for employment or for retention as a consultant or service provider; (2) hire
or participate (with another company or third party) in the process of hiring
any person who is
then an employee of Dana, or provide names or other information about Dana
employees to any person or business under circumstances which could lead to the
use of that information for purposes of recruiting or hiring; (3) interfere
with the relationship of Dana with any of its employees, agents, or
representatives; (4) solicit or induce, or in any manner attempt to solicit or
induce, any client, customer, or prospect of Dana (A) to cease being, or not to
become, a customer of Dana, or (B) to divert any business of such customer or
prospect from Dana; (5) otherwise interfere with, disrupt, or attempt to
interfere with or disrupt, the relationship, contractual or otherwise, between
Dana and any of its customers, clients, prospects, suppliers, consultants, or
employees; or (6) make or publish any statement which is, or
may

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December 21, 2001

reasonably be considered to be, disparaging to Dana or to the directors,
officers, employees or operations of Dana.

                           (f)          Waiver. Nothing in this Agreement will bar Consultant from requesting, at the
termination of this Agreement or at any time thereafter, that Dana, in its sole
discretion, waive in writing Dana’s rights to enforce some or all of this
Section 8.

                           (g)          Other Agreements and Policies. The obligations imposed by this Section 8 are
in addition to, and not in lieu of, any and all other policies or agreements of
Dana regarding the subject matter of the foregoing obligations or that result
from Consultant’s prior employment with Dana.

                           (h)          Survival. The provisions of this Section 8 shall survive the termination of
this Agreement.

         9.     Independent Contractor. Consultant at all times will act as an independent
contractor and will not act or hold himself out to third parties as an
employee, officer or agent of Dana. Consultant agrees that he has no authority
to bind Dana, to sign or execute documents or to make any commitments on behalf
of Dana. Nothing in this Agreement or to be done pursuant to its terms and
conditions is intended to, or shall, create a partnership, joint venture,
principal-agent or employer-employee relationship between Dana and Consultant.
Consultant shall be responsible for paying and reporting any federal or state
income tax, withholding, social security taxes or unemployment insurance in
connection with amounts paid to him hereunder. Consultant shall have no right
to participate in any of Dana’s employee benefit plans.

         10.     Applicable Law. This Agreement shall be construed and interpreted according to
the laws of the State of Ohio, without regard to the conflicts of law rules
thereof.

         11.     Source of Payments. The amounts payable under this Agreement may be paid, at
Dana’s sole discretion, from Dana’s or DCC’s general assets, or from any other
source.

         12.     Headings. The headings and captions set forth herein are for convenience of
reference only and shall not affect the construction or interpretation hereof.

         13.     Notices. Any notice or other communication required, permitted, or desirable
hereunder shall be hand delivered (including delivery by a commercial courier
service) or sent by United States registered or certified mail, postage
prepaid, addressed as follows:

	 	 	 	 	 
	 	 	
If to Consultant:
	 	Edward J. Shultz
	
	
	
	

	
	
	
	

	
	
	
	

	 	 	 	 	7164 Forest Brook Drive
	
	
	
	

	 	 	 	 	Sylvania, Ohio 43560
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	 	 	
If to the Company:
	 	Dana Corporation
	
	
	
	

	 	 	 	 	P. O. Box 1000
	
	
	
	

	 	 	 	 	Toledo, Ohio 43697
	
	
	
	

	 	 	 	 	or

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Commission.

December 21, 2001

	 	 	 	 	 
	
	
	
	

	 	 	 	 	4500 Dorr Street
	
	
	
	

	 	 	 	 	Toledo, Ohio 43615
	
	
	
	

	 	 	Attention:   General Counsel

or such other addresses as shall be furnished in writing by the parties. Any
such notice or communication shall be deemed to have been given as of the date
so delivered in person or three business days after so mailed.

         14.     Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of successors and permitted assigns of the parties. This Agreement may
not be assigned, nor may performance of any duty hereunder be delegated, by
either party without the prior written consent of the other;
provided, however,
Dana may assign this Agreement, without the consent of the Consultant, to the
purchaser of the assets of the business of DCC in connection with and as a part
of a Platform Sale and in such case, Dana and DCC shall mean Dana and DCC (as
hereinbefore defined) and any such purchaser which assumes and agrees to
perform this Agreement.

         15.     Entire Agreement; Amendments. This Agreement sets forth the entire agreement
and understanding of the parties with respect to the subject matter hereof, and
there are no other contemporaneous written or oral agreements, undertakings,
promises, warranties, or covenants not specifically referred to or contained
herein. This Agreement specifically supersedes any and all prior agreements
and understandings of the parties with respect to the subject matter hereof,
all of which prior agreements and understandings (if any) are hereby terminated
and of no further force and effect. This Agreement may be amended, modified,
or terminated only by a written instrument signed by the parties hereto.

         16.     Execution of Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same Agreement. This Agreement may be
delivered by facsimile transmission of an originally executed copy to be
followed by immediate delivery of the original of such executed copy.

         17.     Severability. If any provision, clause or part of this Agreement, or the
applications thereof under certain circumstances, is held invalid or
unenforceable for any reason, the remainder of this Agreement, or the
application of such provision, clause or part under other circumstances, shall
not be affected thereby.

         18.     Incorporation of Recitals and Schedules. The Recitals and Schedules to this
Agreement are an integral part of, and by this reference are hereby
incorporated into, this Agreement.

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December 21, 2001

         IN WITNESS WHEREOF, the parties have executed this Consulting Agreement to
be effective as of the day and year first above written.

	 	 	 	 	 
	 	 	DANA CORPORATION
	
	
	
	

	 	 	 	 	 
	
	
	
	

	 	 	
By:
	 	/s/ R. C. Richter
	 	 	 	 	

	 	 	
Title:
	 	VP — Chief Financial Officer
	 	 	 	 	

	 	 	
Date:
	 	12/21/01
	 	 	 	 	

	 	 	 	 	/s/ E. J. Shultz
	 	 	 	 	

	 	 	 	 	Edward J. Shultz
	
	
	
	

	 	 	
Date:
	 	12/21/01
	 	 	 	 	

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December 21, 2001

	SCHEDULE A

                      *** Pages 11-13 (3 pages)
   

 

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Schedule B

***(1 page)<PAGE>

                                                                Exhibit 10.1a(5)

             FIFTH AMENDMENT TO CREDIT AGREEMENT AND LIMITED WAIVER

     This Fifth Amendment to Credit Agreement and Limited Waiver, dated as of
December 31, 2001 (this "Amendment and Waiver"), by and among STEEL DYNAMICS,
INC., an Indiana corporation (the "Borrower"), the lenders executing this
Amendment and Waiver on the signatures pages hereof and MELLON BANK, N. A., as
Agent for the Lenders under the Credit Agreement (Amended and Restated) referred
to below (the "Agent").

     Introductory Statements:

     A. Reference is made to the Credit Agreement (Amended and Restated), dated
as of June 30, 1994, as amended and restated as of June 30, 1997 (as amended to
date, the "Credit Agreement"), by and among the Borrower, the Lenders listed on
the signature pages hereof (collectively, the "Lenders") and the Agent.
Capitalized terms used herein and not otherwise defined herein shall have the
meanings ascribed to such terms in the Credit Agreement.

     B. The Borrower has advised the Lenders and the Agent that the Borrower is
in violation of Section 6.01(a) of the Credit Agreement in that the Borrower's
Leverage Ratio for the period of four consecutive fiscal quarters ending
December 31, 2001 exceeds 5.0 to 1 (such violation, the "Identified Violation").

     C. The Borrower has also advised the Lenders and the Agent that the
Borrower may, as of March 31, 2002, be in violation of Section 6.01(a) of the
Credit Agreement in that the Borrower's Leverage Ratio for the period of four
consecutive fiscal quarters ending March 31, 2002 may exceed 4.0 to 1 (such
violation, the "Identified March Violation").

     D. The Borrower has requested that, for the period from December 31, 2001
to, but not including, March 31, 2002 (the "Waiver Period"), the Required
Lenders waive (i) compliance with Section 6.01(a) of the Credit Agreement for
the period of four consecutive fiscal quarters ending December 31, 2001, (ii)
satisfaction of the conditions of lending under Section 4.02(d) of the Credit
Agreement to the extent, and only to the extent, that such conditions of lending
fail to be satisfied as a result of, and as a result solely of, the Identified
Violation and (iii) satisfaction of the conditions to conversion or renewal of
Interest Rate Options under Section 2.07(a) of the Credit Agreement to the
extent, and only to the extent, that such conditions to conversion or renewal
fail to be satisfied as a result of, and as a result solely of, the Identified
Violation.

     E. The Borrower has advised the Lenders that it is considering arranging
for the refinancing the Loans and the Specified Unsecured Bank Debt. The
Borrower has requested that if, and only if, on March 31, 2002, the Borrower
shall have theretofore received commitments from financial institutions to
provide financing on terms satisfactory to the Borrower in an aggregate amount
sufficient to pay the Loans and the Specified Unsecured Bank Debt in full and
the Borrower and such financial institutions shall be in process of finalizing
the documentation for such refinancing, and the Borrower shall have provided to
the Lenders a certificate to both such effects, then the Waiver Period shall be
extended to end on April 30, 2002 (or, if earlier, the date on which such
commitments terminate or on which the process of finalizing documentation for
such refinancing ceases) and the Identified March Violation, as well as the
Identified Violation, shall be covered by the waiver referred to in the
immediately preceding paragraph.

     F. The Borrower and the Required Lenders desire to make certain amendments
to the Credit Agreement.

<PAGE>

     Section 1. Waiver. The Required Lenders hereby waive, for the Waiver Period
only, (i) compliance with Section 6.01(a) of the Credit Agreement for the period
of four consecutive fiscal quarters ending December 31, 2001, (ii) satisfaction
of the conditions of lending under Section 4.02(d) of the Credit Agreement to
the extent, and only to the extent, that such conditions of lending fail to be
satisfied as a result of, and as a result solely of, the Identified Violation
and (iii) satisfaction of the conditions to conversion or renewal of Interest
Rate Options under Section 2.07(a) of the Credit Agreement to the extent, and
only to the extent, that such conditions to conversion or renewal fail to be
satisfied as a result of, and as a result solely of, the Identified Violation.

     Section 2. Extended Waiver. The effectiveness of the waiver granted by the
Required Lenders in the next succeeding sentence is subject to satisfaction of
the condition that on March 31, 2002, the Borrower shall have theretofore
received commitments from financial institutions to provide financing on terms
satisfactory to the Borrower in an aggregate amount sufficient to pay the Loans
and the Specified Unsecured Bank Debt in full and the Borrower and such
financial institutions shall be in process of finalizing the documentation for
such financing and the Borrower shall have provided to the Lenders a certificate
to both such effects. Subject to satisfaction of the condition set forth in the
immediately preceding sentence, the Required Lenders hereby waive, for the
Waiver Extension Period only, (i) compliance with Section 6.01(a) of the Credit
Agreement for the period of four consecutive fiscal quarters ending December 31,
2001 and for the period of four consecutive fiscal quarters ending March 31,
2002, (ii) satisfaction of the conditions of lending under Section 4.02(d) of
the Credit Agreement to the extent, and only to the extent, that such conditions
of lending fail to be satisfied as a result of, and as a result solely of, the
Identified Violation and/or the Identified March Violation and (iii)
satisfaction of the conditions to conversion or renewal of Interest Rate Options
under Section 2.07(a) of the Credit Agreement to the extent, and only to the
extent, that such conditions to conversion or renewal fail to be satisfied as a
result of, and as a result solely of, the Identified Violation and/or the
Identified March Violation. As used herein, the term Waiver Extension Period
means the period commencing on March 31, 2002 and ending on the earlier to occur
of (i) April 30, 2002 and (ii) the date on which the commitments referred to in
the first sentence of this Section 2 terminate or on which the process of
finalizing documentation for the financing referred to in the first sentence of
this Section 2 ceases.

     Section 3. Amendments.

     3.1. The Credit Agreement is hereby amended by adding thereto, as a new
Section 6.19 thereof, the following:

          6.19. Maintenance of Cash with Lenders. The Borrower shall not permit
     any of its cash to be held or maintained other than in one or more deposit
     accounts each of which is maintained by the Borrower with a Lender. The
     Borrower confirms that under the Security Agreement the Borrower is
     required to maintain perfection of the security interest of the Agent, for
     the benefit of the Lenders, in the Borrower's Cash Equivalent Investments.

     3.2. Section 6.03 of the Credit Agreement, entitled "Indebtedness" is
hereby amended by deleting the figure "$95,000,000" appearing at the end of
clause (i) thereof and inserting in lieu thereof the figure "$125,000,000".

     3.3. Section 6.04 of the Credit Agreement, entitled "Guaranties,
Indemnities, etc." is hereby amended by deleting the figure "$14,035,819"
appearing in clause (h) thereof and inserting in lieu thereof the figure
"$23,970,030" and by adding, immediately before the period at the end of such
clause (h), the phrase "and such guaranty shall be subject to reduction

                                      -2-
<PAGE>

as contemplated by paragraph 3 of the Agreement attached as Exhibit A to the
Fifth Amendment to this Agreement".

     3.4. Section 6.05 of the Credit Agreement, entitled "Loans, Advances and
Investments", is hereby amended by deleting the figure "$95,000,0000" appearing
in clause (g) thereof and inserting in lieu thereof the figure "$125,000,000".

     3.5. Section 6.10 of the Credit Agreement, entitled "Dispositions of
Properties", is hereby amended by inserting at the end thereof, after paragraph
(f) thereof, the following sentence:

          It is understood that the issuance by the Borrower of its treasury
          shares of common stock pursuant to the Agreement attached as Exhibit A
          to the Fifth Amendment to this Agreement shall be deemed not to
          violate this Section 6.10.

     3.6. Section 6.12 of the Credit Agreement, entitled "Dealings with
Affiliates", is hereby amended by inserting at the end thereof, after paragraph
(e) thereof, the following sentence:

          It is understood that the execution, delivery and performance by the
          Borrower of the Agreement attached as Exhibit A to the Fifth Amendment
          to this Agreement shall be deemed not to violate this Section 6.12.

     3.7. Section 3.15 of the Credit Agreement, entitled "Ownership and
Control", is hereby amended by adding thereto, immediately before the period at
the end of the third sentence thereof, the following clause: "and except for
performance by the Borrower of the Agreement attached as Exhibit A to the Fifth
Amendment to this Agreement".

     Section 4. Miscellaneous.

     4.1 This Amendment and Waiver shall become effective as of December 31,
2001 upon (i) the execution and delivery hereof by the Required Lenders and the
Borrower (ii) the execution and delivery by the Borrower and the lenders under
the credit agreement governing the Specified Unsecured Bank Debt of a waiver and
amendment substantially similar hereto and (iii) the payment by the Borrower to
the Agent, for the respective accounts of Lenders which shall have indicated
their consent to this Amendment and Waiver in writing to the Agent on or before
the date of execution and delivery hereof by the Required Lenders and the
Borrower of a waiver fee in the amount of 50 basis points times the aggregate
amount of the Commitments of each such Lender. By its acceptance hereof, the
Borrower agrees to pay such fee to each Lender which shall have indicated its
consent to this Waiver in writing to the Agent on or before January 29, 2002.

     4.2. The waiver granted by this Amendment and Waiver is limited to the
terms expressly provided herein. No implied waivers shall be inferred by the
execution of this Waiver and the exercise of any right or privilege under this
Waiver shall not affect any right, remedy, power or privilege of the Lenders or
the Agent provided under the Credit Agreement. By its acceptance hereof the
Borrower expressly ratifies and confirms the provisions of the Credit Agreement
and the Credit Agreement (as amended by Section 3 hereof) remains in full force
and effect among the parties thereto.

     4.3 This Amendment and Waiver may be executed in any number of counterparts
and by the different parties hereto on separate counterparts each of which, when
so executed, shall be deemed an original, but all such counterparts shall
constitute but one and the same instrument.

                                      -3-
<PAGE>

     4.4 By their execution and delivery hereof, the Required Lenders hereby
authorize and direct the Agent to execute and deliver this Amendment and Waiver.

     4.5 THIS AMENDMENT AND WAIVER SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
CHOICE OF LAW PRINCIPLES.

     IN WITNESS WHEREOF, the parties have executed this consent as if the date
first above written.

                                            MELLON BANK, N.A., as Agent

                                            By /s/ Roger N. Stanier
                                            ------------------------------------
                                            Title: Vice President

                                            GE CAPITAL CFE, INC.

                                            By /s/ Michael Lustbader
                                            ------------------------------------
                                            Title: Duly Authorized Signatory

                                            KREDITANSTALT FUR WIEDERAUFBAU

                                            By /s/ Werner Schulte
                                            ------------------------------------
                                            Title: First Vice President

                                            By /s/ Norbert Vay
                                            ------------------------------------
                                            Title: Vice President

                                            COMERICA BANK

                                            By /s/ James B. Haeffner
                                            ------------------------------------
                                            Title: First Vice President

                                      -4-
<PAGE>

                                            THE INDUSTRIAL BANK OF JAPAN,
                                              LIMITED

                                            By /s/ Walter R. Wolff
                                            ------------------------------------
                                            Title: Joint General Manager
                                                   and Group Head

                                            BANK ONE, INDIANA

                                            By
                                            ------------------------------------
                                            Title:

                                            WACHOVIA BANK, N. A.

                                            By /s/ Brad Watkins
                                            ------------------------------------
                                            Title: Vice President

                                            BANK AUSTRIA CREDITANSTALT CORPORATE
                                                FINANCE, INC.

                                            By
                                            ------------------------------------
                                            Title:

                                            By
                                            ------------------------------------
                                            Title:

                                            NATIONAL CITY BANK OF INDIANA

                                            By /s/ Lawrence J. Mayers
                                            ------------------------------------
                                            Title: Senior Vice President

                                      -5-
<PAGE>

                                            LASALLE BANK NATIONAL ASSOCIATION

                                            By  /s/ James Thompson
                                            ------------------------------------
                                            Title:  Group Senior Vice President

                                            JP MORGAN CHASE BANK f/k/a
                                            THE CHASE MANHATTAN BANK

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

                                            HARRIS TRUST AND SAVINGS BANK

                                            By  /s/ Thad D. Rasche
                                            ------------------------------------
                                            Title:  Vice President

                                            WESTDEUTSCHE LANDESBANK
                                                GIROZENTRALE, NEW YORK BRANCH

                                            By  /s/ Donald F. Wolf
                                            ------------------------------------
                                            Title:  Director

                                            By  /s/ Elisabeth R. Wilds
                                            ------------------------------------
                                            Title:  Associate Director

                                            SUNTRUST BANK

                                            By
                                            ------------------------------------
                                            Title:

                                      -6-

<PAGE>

                                   NORTHERN TRUST COMPANY

                                   By   /s/ Mark E. Taylor
                                   ------------------------------------------
                                   Title: Vice President

                                   FIRST UNION NATIONAL BANK

                                   By   /s/ Eric Tan
                                   ------------------------------------------
                                   Title: Vice President

                                   THE HUNTINGTON NATIONAL BANK

                                   By   /s/ Angela M. Cecil
                                   ------------------------------------------
                                   Title: Vice President

                                   STEEL DYNAMICS, INC.

                                   By   /s/ Keith E. Busse
                                   ------------------------------------------
                                   Title: President & Chief Executive Officer

                                      -7-

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