Document:

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                                                                    Exhibit 4.19

                                  $250,000,000

                           EARLE M. JORGENSEN COMPANY

                      9 3/4% Senior Secured Notes Due 2012

                               PURCHASE AGREEMENT

                                                                    May 17, 2002

Credit Suisse First Boston Corporation
Deutsche Bank Securities Inc.
J.p. Morgan Securities Inc.
  As Representatives of the Several Purchasers,
    c/o Credit Suisse First Boston Corporation,
            Eleven Madison Avenue,
               New York, N.Y. 10010-3629

Dear Sirs:

     1. Introductory. Earle M. Jorgensen Company, a Delaware corporation (the
"Company"), proposes, subject to the terms and conditions stated herein, to
issue and sell to the several initial purchasers named in Schedule A hereto (the
"Purchasers"), U.S. $250,000,000 principal amount of its 9 3/4% senior secured
notes due 2012 ("Offered Securities") to be issued under an indenture, dated as
of May 22, 2002 (the "Indenture"), between the Company and Bank of New York, as
Trustee. The Company is a wholly owned subsidiary of Earle M. Jorgensen Holding
Company, Inc. (the "Holding Company"). The United States Securities Act of 1933
is herein referred to as the "Securities Act."

     Holders (including subsequent transferees) of the Offered Securities will
have the registration rights set forth in the registration rights agreement (the
"Registration Rights Agreement"), to be dated the Closing Date (as hereinafter
defined), in substantially the form of Exhibit I hereto, for so long as such
Offered Securities constitute "Transfer Restricted Securities" (as defined in
the Registration Rights Agreement). Pursuant to the Registration Rights
Agreement, the Company will agree to file with the Securities and Exchange
Commission (the "Commission") under the circumstances set forth therein, (i) a
registration statement under the Securities Act (the "Exchange Offer
Registration Statement") relating to the Company's 9 3/4% senior secured notes
in a like aggregate principal amount as the Company issued under the Indenture,
identical in all material respects to the Initial Securities and registered
under the Securities Act (the "Exchange Securities"), to be offered in exchange
for the Offered Securities (such offer to exchange being referred to as the
"Exchange Offer") and (ii) a shelf registration statement pursuant to Rule 415
under the Securities Act (the "Shelf Registration Statement" and, together with
the Exchange Offer Registration Statement, the "Registration Statements")
relating to the resale by certain holders of the Offered Securities and to use
its best efforts to cause such Registration Statements to be declared and remain
effective and usable for the periods specified in the Registration Rights
Agreement and the

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Company will agree to consummate the Exchange Offer. The Offered Securities and
the Exchange Securities are referred to collectively as the "Securities".

     On the Closing Date, the Company will enter into the "Security Documents"
(as defined in the Indenture), which will provide for the grant of Liens on all
of the right, title and interest of the Company in the "Collateral" (as defined
in the Indenture) to the Trustee, as secured party for itself and for the
benefit of the holders of the Securities (the "Secured Parties"). The Liens will
secure the payment and performance when due of all of the obligations of the
Company under the Indenture. On the Closing Date, the Holding Company, the
Company and the other parties to the Second Amended and Restated Credit
Agreement, dated as of April 12, 2002, will enter into an amendment thereto (the
"Bank Amendment," and together with any documents executed in connection
therewith, the "Bank Amendment Documents"). In addition, on the Closing Date,
the Trustee and Deutsche Bank Trust Company Americas, in its capacity as agent
for itself and the other lenders party to the Bank Credit Facility, will enter
into an intercreditor agreement (the "Intercreditor Agreement," and, together
with the Registration Rights Agreement, the Security Documents and the Bank
Amendment Documents, the "Additional Documents"). Capitalized terms used herein
but not defined have the meaning given to such terms in the Indenture.

     The Company hereby agrees with the several Purchasers as follows:

     2. Representations and Warranties of the Company. The Company represents
and warrants to, and agrees with, the several Purchasers that:

          (a) A preliminary offering circular and an offering circular relating
     to the Offered Securities to be offered by the Purchasers have been
     prepared by the Company. Such preliminary offering circular (the
     "Preliminary Offering Circular") and offering circular (the "Offering
     Circular"), as supplemented as of the date of this Agreement, together with
     the documents listed in Schedule B hereto are hereinafter collectively
     referred to as the "Offering Document". The Preliminary Offering Circular
     as of its date did not, the Offering Circular as of the date hereof does
     not, and the Offering Document as of the Closing Date will not, 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. The preceding
     sentence does not apply to statements in or omissions from the Offering
     Document based upon written information furnished to the Company by any
     Purchaser through Credit Suisse First Boston Corporation ("CSFBC")
     specifically for use therein, it being understood and agreed that the only
     such information is that described as such in Section 7(b) hereof. Except
     as disclosed in the Offering Document, on the date of this Agreement, the
     Company's Annual Report on Form 10-K most recently, if any, filed with the
     Securities and Exchange Commission (the "Commission") and all subsequent
     reports (collectively, the "Exchange Act Reports") which have been filed by
     the Company with the Commission or sent to shareholders pursuant to the
     Securities Exchange Act of 1934 (the "Exchange Act") do not include any
     untrue statement of a material fact or omit to state any material fact
     necessary to make the statements therein, in the light of the circumstances
     under which they were made, not misleading. Such documents, when they were
     filed with the Commission, conformed in all material respects to the
     requirements of the Exchange Act and the rules and regulations of the
     Commission thereunder.

          (b) The Company has been duly incorporated and is an existing
     corporation in good standing under the laws of the State of Delaware, with
     the requisite corporate power and authority to own its properties and
     conduct its business as described in the Offering Document; and the Company
     is duly qualified to do business as a foreign corporation in good standing
     in all other jurisdictions in which its ownership or lease of property or
     the conduct of its business requires such qualification, except where the
     failure to be so qualified would not, singularly or in the aggregate, have
     a material

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          adverse effect on the condition (financial or other), business,
          properties, or results of operations of the Company and its
          subsidiaries taken as a whole (a "Material Adverse Effect").

               (c) The Company has an authorized capitalization as set forth in
          the Preliminary Offering Circular and the Offering Circular under the
          heading "Capitalization."

               (d) Each subsidiary of the Company has been duly incorporated and
          is an existing corporation in good standing under the laws of the
          jurisdiction of its incorporation, with the requisite corporate power
          and authority to own its properties and conduct its business as
          described in the Offering Document; and each subsidiary of the Company
          is duly qualified to do business as a foreign corporation in good
          standing in all other jurisdictions in which its ownership or lease of
          property or the conduct of its business requires such qualification,
          except where the failure to be so qualified would not, singularly or
          in the aggregate, have a Material Adverse Effect; all of the issued
          and outstanding capital stock of each subsidiary of the Company has
          been duly authorized and validly issued, is fully paid and
          nonassessable; and the capital stock of each subsidiary owned by the
          Company, directly or through subsidiaries, is owned free from Liens,
          other than as described in the Offering Document. The entities listed
          on Schedule C hereto are the only subsidiaries, direct or indirect, of
          the Company.

               (e) The Holding Company has been duly organized, is validly
          existing as a corporation in good standing under the laws of the State
          of Delaware and does not engage in any business or investment
          activities other than owning 100% of the issued and outstanding
          capital stock of the Company and supplying management services to the
          Company pursuant to the terms of the Management Agreement, as
          described in the Offering Circular.

               (f) The Indenture has been duly authorized; the Offered
          Securities have been duly authorized; and when the Offered Securities
          are delivered and paid for pursuant to this Agreement on the Closing
          Date (as defined below), the Indenture will have been duly executed
          and delivered, such Offered Securities will have been duly executed,
          authenticated, issued and delivered and will conform to the
          description thereof contained in the Offering Document and the
          Indenture and such Offered Securities will constitute valid and
          legally binding obligations of the Company, enforceable in accordance
          with their terms, subject to bankruptcy, insolvency, fraudulent
          transfer, reorganization, moratorium and similar laws of general
          applicability relating to or affecting creditors' rights and to
          general equity principles. 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 "TIA" or "Trust Indenture
          Act"), and the rules and regulations of the Commission applicable to
          an indenture which is qualified thereunder.

               (g) Except as disclosed in the Offering Document, there are no
          contracts, agreements or understandings between the Company and any
          person that would give rise to a valid claim against the Company or
          any Purchaser for a brokerage commission, finder's fee or other like
          payment.

               (h) On the Closing Date, the Exchange Securities will have been
          duly authorized by the Company; and when the Exchange Securities are
          issued, executed and authenticated in accordance with the terms of the
          Exchange Offer and the Indenture, the Exchange Securities will be
          entitled to the benefits of the Indenture and will be the valid and
          legally binding obligations of the Company, enforceable against the
          Company in accordance with their terms, subject to bankruptcy,
          insolvency, fraudulent transfer, reorganization, moratorium and
          similar laws of general applicability relating to or affecting
          creditors' rights and to general equity principles.

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               (i) The Additional Documents have been duly authorized by the
          Holding Company and the Company party thereto and, on the Closing
          Date, will have been duly executed and delivered by the Holding
          Company and the Company party thereto. When the Additional Documents
          have been duly executed and delivered, each will be a valid and
          binding agreement of the Holding Company and the Company party
          thereto, enforceable against the Holding Company and the Company party
          thereto in accordance with its terms, subject to bankruptcy,
          insolvency, fraudulent transfer, reorganization, moratorium and
          similar laws of general applicability relating to or affecting
          creditors' rights and to general equity principles. On the Closing
          Date, the Additional Documents will conform in all material respects
          to the description thereof in the Offering Circular.

               (j) Upon: (i) execution and delivery of the Security Documents
          and the issuance of the Offered Securities; and (ii) completion of the
          filings or recordings necessary to perfect the Liens granted under the
          Security Documents, the Security Documents will create, in favor of
          the Secured Parties, legal, valid, and enforceable Liens on all of the
          right, title and interest of the Company in the Collateral. As of the
          Closing Date, such Liens will be valid and perfected to the extent
          that such security interests can be perfected by such filings and
          recordings, and will be subject to no Liens and no arrangements having
          the effect of a Lien (or agreement to enter into any of the
          foregoing), other than: (x) the security interests granted under the
          Security Documents; and (y) Permitted Liens.

               (k) The Mortgages will be effective to grant a legal, valid and
          enforceable mortgage lien on all of the mortgagor's right, title and
          interest in the Mortgaged Properties. When the Mortgages are duly
          recorded in the proper recorders' offices and the mortgage recording
          fees and taxes in respect thereof are paid and compliance is otherwise
          had with the formal requirements of state law applicable to the
          recording of real estate mortgages generally, each such Mortgage shall
          constitute a validly perfected, first-priority security interest in
          the related Mortgaged Property, for the ratable benefit of the holders
          of the Offered Securities, subject only to the encumbrances and
          exceptions to title expressly set forth therein and except as: (A)
          enforceability may be limited by bankruptcy, insolvency, fraudulent
          transfer, reorganization, moratorium and similar laws of general
          applicability relating to or affecting creditors' rights and to
          general equity principles; and (B) the priority is subject to
          Permitted Liens.

               (l) To the Company's knowledge, the Mortgaged Properties under
          the Mortgages and the buildings and improvements thereon comply in all
          material respects with all applicable setback requirements, zoning
          codes, ordinances, laws and regulations, except where non-compliance
          would not, individually or in the aggregate, have a Material Adverse
          Effect.

               (m) There are no pending or, to the Company's knowledge,
          threatened condemnation proceedings, lawsuits, or administrative
          actions relating to the Mortgaged Properties under the Mortgages that
          would have, individually or in the aggregate, a Material Adverse
          Effect.

               (n) Neither the Holding Company nor the Company nor any of its
          subsidiaries is (i) in violation of its respective charter or by-laws,
          (ii) or in default in the performance of any obligation, agreement,
          covenant or condition contained in any indenture, loan agreement,
          mortgage, lease or other agreement or instrument to which the Holding
          Company or the Company or any of its subsidiaries is a party or by
          which the Holding Company or the Company or any of its subsidiaries or
          their respective property is bound, except, in the case of (ii), where
          such defaults have been waived or where such defaults would not be
          reasonably likely to have, singularly or in the aggregate, a Material
          Adverse Effect.

               (o) Except for the Registration Rights Agreement, there are no
          contracts, agreements or understandings between the Holding Company,
          the Company and any person granting such person the

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          right to require the Holding Company or the Company to file a
          registration statement under the Securities Act with respect to any
          securities of the Holding Company or the Company or to require the
          Holding Company or the Company to include such securities with the
          Securities registered pursuant to any Registration Statement.

               (p) Neither the Holding Company nor the Company nor any of its
          subsidiaries nor any agent thereof acting on the behalf of them has
          taken, and none of them will take, any action that might cause this
          Agreement or the issuance or sale of the Offered Securities to violate
          Regulation T, Regulation U or Regulation X of the Board of Governors
          of the Federal Reserve System.

               (q) No "nationally recognized statistical rating organization" as
          such term is defined for purposes of Rule 436(g)(2) under the
          Securities Act: (i) has imposed (or has informed the Company that it
          is considering imposing) any condition (financial or otherwise) on the
          Company's retaining any rating assigned to the Company, any securities
          of the Company or; (ii) has indicated to the Company that it is
          considering: (a) the downgrading, suspension, or withdrawal of, or any
          review for a possible change that does not indicate the direction of
          the possible change in, any rating so assigned; or (b) any change in
          the outlook for any rating of the Company or any securities of the
          Company.

               (r) No form of general solicitation or general advertising (as
          defined in Regulation D under the Securities Act) was used by the
          Company or any of their respective representatives (other than the
          Purchasers, as to whom the Company make no representation) in
          connection with the offer and sale of the Offered Securities
          contemplated hereby, including, but not limited to, articles, notices
          or other communications published in any newspaper, magazine, or
          similar medium or broadcast over television or radio, or any seminar
          or meeting whose attendees have been invited by any general
          solicitation or general advertising. No securities of the same class
          as the Offered Securities have been issued and sold by the Company
          within the six-month period immediately prior to the date hereof.

               (s) Neither the Company nor any of its affiliates or any person
          acting on its or their behalf (other than the Purchasers, as to whom
          the Company make no representation) has engaged or will engage in any
          directed selling efforts within the meaning of Regulation S under the
          Securities Act ("Regulation S") with respect to the Offered
          Securities.

               (t) The Offered Securities offered and sold in reliance on
          Regulation S have been and will be offered and sold only in "offshore
          transactions," as defined in Regulation S.

               (u) The sale of the Offered Securities pursuant to Regulation S
          is not part of a plan or scheme to evade the registration provisions
          of the Securities Act.

               (v) No registration under the Securities Act of the Offered
          Securities is required for the sale of the Offered Securities to the
          Purchasers as contemplated hereby or for the transfer of the Offered
          Securities as described in the Offering Circular assuming the accuracy
          of the Purchaser's representations set forth in Section 4 hereof.

               (w) Assuming the accuracy of the representations of the
          Purchasers contained in this Agreement, no consent, approval,
          authorization, or order of, or filing with, any governmental agency or
          body or any court is required for the consummation of the transactions
          contemplated by this Agreement or the Additional Documents in
          connection with the issuance and sale of the Offered Securities by the
          Company except for: (i) the order of the Commission declaring the
          Exchange Offer Registration Statement or the Shelf Registration
          Statement (each as defined in the Registration Rights Agreement)
          effective; or (ii) filings or recordings necessary to perfect the
          Liens on all of the right, title and interest of the Company in the
          Collateral granted under the Security Documents.

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               (x)  The execution, delivery and performance of the Indenture,
          this Agreement and the Additional Documents, and the issuance and sale
          of the Offered Securities and compliance with the terms and provisions
          thereof will not result in a breach or violation of any of the terms
          and provisions of, constitute a default under, or result in the
          creation of a Lien under (other than Liens in favor of the Secured
          Parties under the Security Documents): (i) any statute, any rule,
          regulation or order of any governmental agency or body or any court,
          domestic or foreign, having jurisdiction over the Holding Company, the
          Company or any subsidiary of the Company or any of their properties;
          or (ii) any agreement or instrument to which the Holding Company, the
          Company or any such subsidiary is a party or by which the Holding
          Company, the Company or any such subsidiary is bound or to which any
          of the properties of the Holding Company, the Company or any such
          subsidiary is subject; or (iii) the charter or by-laws of the Holding
          Company, the Company or any such subsidiary, and the Company has the
          requisite corporate power and authority to authorize, issue and sell
          the Offered Securities as contemplated by this Agreement, except where
          such default or breach or violation of clauses (i) or (ii) of this
          paragraph would not have, singularly or in the aggregate, a Material
          Adverse Effect.

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

               (z)  Except as disclosed in the Offering Document, the Company
          and its subsidiaries have good title to all real properties and good
          title to all other properties and assets owned by them, in each case
          free from Liens, except Permitted Liens, that would materially affect
          the value thereof or materially interfere with the use made or to be
          made thereof by them; and except as disclosed in the Offering
          Document, the Company and its subsidiaries hold any leased real or
          personal property under valid and enforceable leases with no
          exceptions that would materially interfere with the use made or to be
          made thereof by them.

               (aa) The Company and its subsidiaries possess adequate
          certificates, authorities or permits issued by appropriate
          governmental agencies or bodies necessary to conduct the business now
          operated by them and have not received any notice of proceedings
          relating to the revocation or modification of any such certificate,
          authority or permit that, if determined adversely to the Company or
          any of its subsidiaries, would individually or in the aggregate have a
          Material Adverse Effect.

               (bb) No labor dispute with the employees of the Company or any
          subsidiary exists or, to the knowledge of the Company, is imminent
          that might have a Material Adverse Effect.

               (cc) The Company and its subsidiaries own, possess or can acquire
          on reasonable terms, adequate trademarks, trade names and other rights
          to inventions, know-how, patents, copyrights, confidential information
          and other intellectual property (collectively, "intellectual property
          rights") necessary to conduct the business now operated by them, or
          presently employed by them, and have not received any notice of
          infringement of or conflict with asserted rights of others with
          respect to any intellectual property rights that, if determined
          adversely to the Company or any of its subsidiaries, would
          individually or in the aggregate have a Material Adverse Effect.

               (dd) Except as disclosed in the Preliminary Offering Memorandum
          and the Offering Memorandum and as would not, singly or in the
          aggregate, have a Material Adverse Effect: (i) the Company is in
          compliance with all laws and regulations relating to protection of
          human health or environment or imposing liability or standards of
          conduct concerning any Materials of Environmental Concern (as defined
          below) ("Environmental Laws"), including, without limitation,
          possession of required permits and compliance with the terms of
          conditions thereof, and there are no circumstances known to the
          Company that will prevent such compliance in the future; (ii) the
          Company has not received any notice and there is no pending or
          threatened action, suit or proceeding before or by any

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          court of governmental agency or body ("Environmental Claim") alleging
          potential liability (including, but not limited to, investigatory,
          cleanup or governmental response costs, natural resources or property
          damages, personal injuries, or penalties) of the Company or any person
          or entity for whom the Company has contractually retained or assumed
          responsibility, arising out of, based on, or resulting from the
          presence, or release, discharge, emission or disposal into the
          environment, of any Material of Environmental Concern at or from any
          location, owned or operated by the Company or any violation or alleged
          violation of any Environmental Law, including (without consideration
          of whether such claim would singly or in the aggregate have a Material
          Adverse Effect, notwithstanding the opening proviso to this Section
          2(dd)) any Environmental Claim that the Company reasonably believes
          will result in monetary sanctions of more than $100,000; and (iii) to
          the best of the Company's knowledge, there are no past or present
          actions, activities, conditions, events or incidents that could be
          reasonably expected to form the basis of any such Environmental Claim.
          The term "Materials of Environmental Concern" means (a) any hazardous
          substance" as defined by the Comprehensive Environmental Response,
          Compensation and Liability of 1980, as amended, (b) any "hazardous
          waste" as defined by the Resource Conservation and Recovery Act, as
          amended, (c) any petroleum or petroleum product, (d) any
          polychlorinated biphenyl, and (e) any pollutant or contaminant or
          hazardous, dangerous, or toxic chemical, material, waste or substance
          regulated or defined under any other Environmental Law;

               (ee) Except as disclosed in the Offering Document, there are no
          pending actions, suits or proceedings against or affecting the Holding
          Company, the Company or any of its subsidiaries or any of their
          respective properties that, if determined adversely to the Company or
          any of its subsidiaries, would individually or in the aggregate have a
          Material Adverse Effect, or would materially and adversely affect the
          ability of the Company to perform its obligations under the Indenture,
          this Agreement or the Additional Documents or which are otherwise
          material in the context of the sale of the Offered Securities; and no
          such actions, suits or proceedings are, to the Holding Company or the
          Company's knowledge, threatened or contemplated.

               (ff) The historical financial statements, together with the notes
          thereto, included in the Offering Document present fairly the
          financial position of the Company and its consolidated subsidiaries as
          of the dates shown and their results of operations and cash flows for
          the periods shown, and, except as otherwise disclosed in the Offering
          Document, such financial statements have been prepared in conformity
          with the generally accepted accounting principles in the United States
          applied on a consistent basis; and the assumptions used in preparing
          the pro forma financial statements included in the Offering Document
          provide a reasonable basis for presenting the significant effects
          directly attributable to the transactions or events described therein,
          the related pro forma adjustments give appropriate effect to those
          assumptions, and the pro forma columns therein reflect the proper
          application of those adjustments to the corresponding historical
          financial statement amounts.

               (gg) The Company and each of its subsidiaries maintains a system
          of 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.

               (hh) All indebtedness of the Company that will be repaid with the
          proceeds of the issuance and sale of the Offered Securities was
          incurred, and the indebtedness represented by the Offered

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     Securities is being incurred, for proper purposes and in good faith, and
     the Company was, at the time of the incurrence of such indebtedness that
     will be repaid with the proceeds of the issuance and sale of the Offered
     Securities, and will be on the Closing Date (after giving effect to the
     application of the proceeds from the issuance of the Offered Securities),
     solvent, and had at the time of the incurrence of such indebtedness that
     will be repaid with the proceeds of the issuance and sale of the Offered
     Securities, and will have on the Closing Date (after giving effect to the
     application of the proceeds from the issuance of the Offered Securities),
     sufficient capital for carrying on its business and was, at the time of the
     incurrence of such indebtedness that will be repaid with the proceeds of
     the issuance and sale of the Offered Securities, and will be on the Closing
     Date (after giving effect to the application of the proceeds from the
     issuance and sale of the Offered Securities), able to pay its debts as they
     become due.

          (ii) Except as disclosed in the Offering Document, since the date of
     the latest audited financial statements included in the Offering Document
     there has been no material adverse change, nor any development or event
     involving a prospective material adverse change, in the condition
     (financial or other), business, properties or results of operations of the
     Company and its subsidiaries taken as a whole, and, except as disclosed in
     or contemplated by the Offering Document, there has been no dividend or
     distribution of any kind declared, paid or made by the Company on any class
     of its capital stock.

          (jj) Each of the Holding Company and the Company is not an open-end
     investment company, unit investment trust or face-amount certificate
     company that is or is required to be registered under Section 8 of the
     United States Investment Company Act of 1940 (the "Investment Company
     Act"); and each of the Holding Company and the Company is not and, after
     giving effect to the offering and sale of the Offered Securities and the
     application of the proceeds thereof as described in the Offering Document,
     will not be an "investment company" as defined in the Investment Company
     Act.

          (kk) No securities of the same class (within the meaning of Rule
     144A(d)(3) under the Securities Act) as the Offered Securities are listed
     on any national securities exchange registered under Section 6 of the
     United States Securities Exchange Act of 1934 ("Exchange Act") Exchange Act
     or quoted in a U.S. automated inter-dealer quotation system.

          (ll) Assuming the accuracy of the representations of the Purchasers in
     this Agreement, the offer and sale of the Offered Securities by the Company
     to the Purchasers in the manner contemplated by this Agreement and the
     Offering Circular will be exempt from the registration requirements of the
     Securities Act by reason of Rule 144A thereof and Regulation S thereunder
     and it is not necessary to qualify an indenture in respect of the Offered
     Securities under the Trust Indenture Act.

          (mm) Neither the Company, nor any of its affiliates, nor any person
     acting on its or their behalf: (i) has, within the six-month period prior
     to the date hereof, offered or sold in the United States or to any U.S.
     person (as such terms are defined in Regulation S under the Securities Act)
     the Offered Securities or any security of the same class or series as the
     Offered Securities; or (ii) has offered or will offer or sell the Offered
     Securities: (A) in the United States by means of any form of general
     solicitation or general advertising within the meaning of Rule 502(c) under
     the Securities Act; or (B) with respect to any such securities sold in
     reliance on Rule 903 of Regulation S, by means of any directed selling
     efforts within the meaning of Rule 902(c) of Regulation S. The Company, its
     affiliates and any person acting on its or their behalf have complied and
     will comply in all material respects with the offering restrictions
     requirement of Regulation S. The Company has not entered and will not enter
     into any contractual arrangement with respect to the distribution of the
     Offered Securities except for this Agreement.

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          (nn) There is no "substantial U.S. market interest" as defined in Rule
     902(j) of Regulation S in the Company's debt securities.

          (oo) The Company is subject to the reporting requirements of either
     Section 13 or Section 15(d) of the Securities Exchange Act of 1934 and
     files reports with the Commission on the Electronic Data Gathering,
     Analysis, and Retrieval (EDGAR) system.

     3. Purchase, Sale and Delivery of Offered Securities. On the basis of the
representations, warranties and agreements herein contained, but subject to the
terms and conditions herein set forth, the Company agrees to sell to the
Purchasers, and the Purchasers agree, severally and not jointly, to purchase
from the Company, at a purchase price of 100% of the principal amount thereof
plus accrued interest from May 22, 2002 to the Closing Date (as hereinafter
defined), the respective principal amounts of Securities set forth opposite the
names of the several Purchasers in Schedule A hereto.

     The Company will deliver against payment of the purchase price the Offered
Securities in the form of one or more permanent global Securities in definitive
form (the "Global Securities") deposited with the Trustee as custodian for The
Depository Trust Company ("DTC") and registered in the name of Cede & Co., as
nominee for DTC. Interests in any permanent global Securities will be held only
in book-entry form through DTC, except in the limited circumstances described in
the Offering Document. Payment for the Offered Securities shall be made by the
Purchasers in Federal (same day) funds by wire transfer to an account at a bank
acceptable to CSFBC at the office of Skadden, Arps, Slate, Meagher & Flom LLP at
10:00 A.M. (New York time), on May 22, 2002 , or at such other time not later
than seven full business days thereafter as CSFBC and the Company determine,
such time being herein referred to as the "Closing Date", against delivery to
the Trustee as custodian for DTC of the Global Securities representing all of
the Securities. The Global Securities will be made available for checking at the
above office of Skadden, Arps, Slate, Meagher & Flom LLP at least 24 hours prior
to the Closing Date.

     4. Representations by Purchasers; Resale by Purchasers.

          (a)  Each Purchaser severally represents and warrants to the Company
     that it is an "accredited investor" within the meaning of Regulation D
     under the Securities Act.

          (b)  Each Purchaser severally acknowledges that the Offered 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 in accordance with Regulation S or pursuant to an exemption
     from the registration requirements of the Securities Act. Each Purchaser
     severally represents and agrees that it has offered and sold the Offered
     Securities, and will offer and sell the Offered Securities: (i) as part of
     its distribution at any time; and (ii) otherwise until 40 days after the
     later of the commencement of the offering and the Closing Date, only in
     accordance with Rule 903 or Rule 144A under the Securities Act ("Rule
     144A"). Accordingly, neither such Purchaser nor its affiliates, nor any
     persons acting on its or their behalf, have engaged or will engage in any
     directed selling efforts with respect to the Offered Securities, and such
     Purchaser, its affiliates and all persons acting on its or their behalf
     have complied and will comply with the offering restrictions requirement of
     Regulation S. Each Purchaser severally agrees that, at or prior to
     confirmation of sale of the Offered Securities, other than a sale pursuant
     to Rule 144A, such Purchaser will have sent to each distributor, dealer or
     person receiving a selling concession, fee or other remuneration that
     purchases the Offered Securities from it during the restricted 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 (the "Securities Act")
          and may not be offered or sold

                                   9

<PAGE>

          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 date of the commencement of the offering and the
          closing date, except in either case in accordance with
          Regulation S (or Rule 144A if available) under the
          Securities Act. Terms used above have the meanings given to
          them by Regulation S."

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

          (c) Each Purchaser severally agrees that it and each of its affiliates
     has not entered and will not enter into any contractual arrangement with
     respect to the distribution of the Offered Securities except for any such
     arrangements with the other Purchasers or affiliates of the other
     Purchasers or with the prior written consent of the Company.

          (d) Each Purchaser severally agrees that it and each of its affiliates
     will not offer or sell the Offered Securities in the United States by means
     of any form of general solicitation or general advertising within the
     meaning of Rule 502(c) under the Securities Act, including, but not limited
     to (i) any advertisement, article, notice or other communication published
     in any newspaper, magazine or similar media or broadcast over television or
     radio, or (ii) any seminar or meeting whose attendees have been invited by
     any general solicitation or general advertising. Each Purchaser severally
     agrees, with respect to resales made in reliance on Rule 144A of any of the
     Offered Securities, to deliver either with the confirmation of such resale
     or otherwise prior to settlement of such resale a notice to the effect that
     the resale of such Offered Securities has been made in reliance upon the
     exemption from the registration requirements of the Securities Act provided
     by Rule 144A.

          (e) Each of the Purchasers severally represents and agrees that: (i)
     it has not offered or sold and prior to the date six months after the date
     of issue of the Offered Securities will not offer or sell any Offered
     Securities to persons in the United Kingdom except to persons whose
     ordinary activities involve them in acquiring, holding, managing or
     disposing of investments (as principal or agent) for the purposes of their
     businesses or otherwise in circumstances which have not resulted and will
     not result in an offer to the public in the United Kingdom within the
     meaning of the Public Offers of Securities Regulations 1995; (ii) 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 Financial
     Services and Markets Act 2000 (the "FSMA")) received by it in connection
     with the issue or sale of any notes in circumstances in which section 21(1)
     of the FSMA does not apply to the Company; and (iii) it has complied and
     will comply with all applicable provisions of the FSMA with respect to
     anything done by it in relation to the notes in, from or otherwise
     involving the United Kingdom.

     Each of the Purchasers acknowledges that the Company and counsel to the
Company will rely upon the truth and accuracy of the forgoing representations
and consents to such reliance.

     5. Certain Agreements of the Company. The Company agrees with the several
Purchasers that:

          (a) The Company will advise CSFBC promptly of any proposal to amend or
     supplement the Offering Document and will not effect such amendment or
     supplementation without CSFBC's consent, which will not be unreasonably
     withheld or delayed. If, at any time prior to the completion of the resale
     of the Offered Securities by the Purchasers, any event occurs as a result
     of which the Offering Document as then amended or supplemented would
     include an 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, the
     Company promptly will notify

                                       10

<PAGE>

     CSFBC of such event and promptly will prepare, at its own expense, an
     amendment or supplement which will correct such statement or omission.
     Neither CSFBC's consent to, nor the Purchasers' delivery to offerees or
     investors of, any such amendment or supplement shall constitute a waiver of
     any of the conditions set forth in Section 6.

          (b) The Company will furnish to CSFBC copies of any preliminary
     offering circular, the Offering Document and all amendments and supplements
     to such documents, in each case as soon as available and in such quantities
     as CSFBC reasonably requests, and the Company will furnish to CSFBC on the
     date hereof three copies of the Offering Document signed by a duly
     authorized officer of the Company, one of which will include the
     independent accountants' reports therein manually signed by such
     independent accountants. At any time when the Company is not subject to
     Section 13 or 15(d) of the Exchange Act and the Offered Securities continue
     to be "restricted securities" under Rule 144, the Company will promptly
     furnish or cause to be furnished to CSFBC (and, upon request, to each of
     the other Purchasers) and, upon request of holders and prospective
     purchasers of the Offered Securities, to such holders and purchasers,
     copies of the information required to be delivered to holders and
     prospective purchasers of the Offered Securities pursuant to Rule
     144A(d)(4) under the Securities Act (or any successor provision thereto) in
     order to permit compliance with Rule 144A in connection with resales by
     such holders of the Offered Securities. The Company will pay the expenses
     of printing and distributing to the Purchasers all such documents.

          (c) The Company, in cooperation with the Purchasers and their counsel,
     will arrange for the qualification of the Offered Securities for sale and
     the determination of their eligibility for investment under the laws of
     such jurisdictions in the United States and Canada as CSFBC designates and
     will continue such qualifications in effect so long as required for the
     resale of the Offered Securities by the Purchasers, provided that the
     Company will not be required to qualify as a foreign corporation or to file
     a general consent to service of process in any such state.

          (d) During the period of two years after the Closing Date, the Company
     will, upon request, furnish to each of the other Purchasers and any holder
     of Offered Securities a copy of the restrictions on transfer applicable to
     the Offered Securities.

          (e) During the period of two years after the Closing Date, the Company
     will not, and will not permit any of its affiliates (as defined in Rule 144
     under the Securities Act) to, resell any of the Offered Securities that
     have been reacquired by any of them.

          (f) During the period of two years after the Closing Date, the Company
     will not be or become, an open-end investment company, unit investment
     trust or face-amount certificate company that is or is required to be
     registered under Section 8 of the Investment Company Act.

          (g) The Company will pay all expenses incidental to the performance of
     its obligations under this Agreement, the Indenture, and the Additional
     Documents, including: (i) the fees and expenses of the Trustee and its
     professional advisers; (ii) all expenses in connection with the execution,
     issue, authentication, packaging and initial delivery of the Offered
     Securities; and, as applicable, the Exchange Securities (as defined in the
     Registration Rights Agreement), the preparation and printing of this
     Agreement, the Indenture, the Offered Securities, the Offering Document and
     the Additional Documents and amendments and supplements thereto, and any
     other document relating to the issuance, offer, sale and delivery of the
     Offered Securities and as applicable, the Exchange Securities; (iii) the
     cost of listing the Offered Securities and qualifying the Offered
     Securities for trading in The PortalSM Market ("PORTAL") and any expenses
     incidental thereto; (iv) the cost of any advertising approved by the
     Company in connection with the issue of the Offered Securities; (v) for any
     expenses (including fees and disbursements of counsel) incurred in
     connection with qualification of the Offered

                                       11

<PAGE>

     Securities or the Exchange Securities for sale under the laws of such
     jurisdictions in the United States and Canada as CSFBC designates and the
     printing of memoranda relating thereto; (vi) for any fees charged by
     investment rating agencies for the rating of the Offered Securities or the
     Exchange Securities; (vii) for expenses incurred in distributing the
     Preliminary Offering Circular and the Offering Document (including any
     amendments and supplements thereto) to the Purchasers; and (viii) the costs
     of perfecting the Liens on all of the right, title and interest of the
     Company in the Collateral and other costs associated with the preparation,
     review or due diligence investigation of the Collateral. The Company will
     also pay or reimburse the Purchasers (to the extent incurred by them) for
     reasonable travel expenses of the Purchasers and the Company's officers and
     employees and other reasonable expenses of the Purchasers and the Company
     in connection with attending or hosting meetings with prospective
     purchasers of the Offered Securities from the Purchasers.

          (h) In connection with the offering, until CSFBC shall have notified
     the Company and the other Purchasers of the completion of the resale of the
     Offered Securities, neither the Company nor any of its affiliates has or
     will, either alone or with one or more other persons, bid for or purchase
     for any account in which it or any of its affiliates has a beneficial
     interest any Offered Securities or attempt to induce any person to purchase
     any Offered Securities, and neither it nor any of its affiliates will make
     bids or purchases for the purpose of creating actual, or apparent, active
     trading in, or of raising the price of, the Offered Securities.

          (i) For a period of 180 days after the date of the initial offering of
     the Offered Securities by the Purchasers, the Company will not offer, sell,
     contract to sell, pledge or otherwise dispose of, directly or indirectly,
     any United States dollar-denominated debt securities issued or guaranteed
     by the Company and having a maturity of more than one year from the date of
     issue except issuances of Offered Securities pursuant to the conversion or
     exchange of convertible or exchangeable securities or the exercise of
     warrants or options, in each case outstanding on the date hereof, grants of
     employee stock options pursuant to the terms of a plan in effect on the
     date hereof, issuances of Offered Securities pursuant to the exercise of
     such options. The Company will not at any time offer, sell, contract to
     sell, pledge or otherwise dispose of, directly or indirectly, any
     securities under circumstances where such offer, sale, pledge, contract or
     disposition would cause the exemption afforded by Section 4(2) of the
     Securities Act or the safe harbor of Regulation S thereunder to cease to be
     applicable to the offer and sale of the Offered Securities.

          (j) The Company will use its best efforts to have the Offered
     Securities admitted to trading on PORTAL and to maintain the listing of the
     Offered Securities on PORTAL for so long as the Offered Securities are
     outstanding.

          (k) The Company hereby agrees to use commercially reasonable efforts
     to do and perform all things required to be done and performed under the
     Security Documents prior to, on and after the Closing Date.

     6. Conditions of the Obligations of the Purchasers. The obligations of the
several Purchasers to purchase and pay for the Offered Securities will be
subject to the accuracy of the representations and warranties on the part of the
Company herein in all material respects in the case of any representation or
warranty without any materiality or Material Adverse Effect qualification, and
in all respects in the case of any representation or warranty with any
materiality or Material Adverse Effect qualification, to the accuracy of the
statements of officers of the Company made pursuant to the provisions hereof, to
the performance by the Company of its obligations hereunder and to the following
additional conditions precedent:

          (a) The Purchasers shall have received a letter, dated the date of
     this Agreement, of Ernst & Young LLP in agreed form confirming that they
     are independent auditors within the meaning of the

                                       12

<PAGE>

     Securities Act and the applicable published rules and regulations
     thereunder ("Rules and Regulations") and to the effect that:

               (i)   in their opinion, except for the omission of financial
          statement schedule II: "Valuation and Qualifying Accounts and
          Reserves", the financial statements examined by them and included in
          the Offering Document comply as to form in all material respects with
          the applicable accounting requirements of the Securities Act and the
          related published Rules and Regulations;

               (ii)  on the basis of a reading of the latest available interim
          financial statements of the Company, inquiries of officials of the
          Company who have responsibility for financial and accounting matters
          and other specified procedures, nothing came to their attention that
          caused them to believe that:

                     (A) at the date of the latest available consolidated
               balance sheet read by such accountants, or at a subsequent
               specified date not more than three business days prior to the
               date of this Agreement, there was any change in the capital stock
               or any increase in long-term debt of the Company or, at the date
               of the latest available consolidated balance sheet read by such
               accountants, there was any decrease in consolidated net current
               assets, or stockholders' equity, as compared with amounts shown
               on the latest consolidated balance sheet included in the Offering
               Document; or

                     (B) for the period from the closing date of the latest
               income statement included in the Offering Document to the closing
               date of the latest available income statement read by such
               accountants there were any decreases, as compared with the
               corresponding period of the previous year, in total operating
               revenues, income from operations or net income;

          except in all cases set forth in clauses (A) and (B) above for
          changes, increases or decreases which the Offering Document disclose
          have occurred or may occur or which are described in such letter; and

               (iii) they have compared specified dollar amounts (or percentages
          derived from such dollar amounts) and other financial information
          contained in the Offering Document and the Exchange Act Reports (in
          each case to the extent that such dollar amounts, percentages and
          other financial information are derived from the general accounting
          records of the Company and its subsidiaries subject to the internal
          controls of the Company's accounting system or are derived directly
          from such records by analysis or computation) with the results
          obtained from inquiries, a reading of such general accounting records
          and other procedures specified in such letter and have found such
          dollar amounts, percentages and other financial information to be in
          agreement with such results, except as otherwise specified in such
          letter.

          (b) Subsequent to the execution and delivery of this Agreement, there
     shall not have occurred: (i) any change, or any development or event
     involving a prospective change, in the condition (financial or other),
     business, properties or results of operations of the Company and its
     subsidiaries taken as one enterprise which, in the judgment of a majority
     in interest of the Purchasers including CSFBC, is material and adverse and
     makes it impractical or inadvisable to proceed with completion of the
     offering or the sale of and payment for the Offered Securities; (ii) any
     downgrading in the rating of any debt securities of the Company by any
     "nationally recognized statistical rating

                                       13

<PAGE>

     organization" (as defined for purposes of Rule 436(g) under the Securities
     Act), or any public announcement that any such organization has under
     surveillance or review its rating of any debt securities of the Company
     (other than an announcement with positive implications of a possible
     upgrading, and no implication of a possible downgrading, of such rating);
     (iii) any change in U.S. or international financial, political or economic
     conditions or currency exchange rates or exchange controls as would, in the
     judgment of a majority in interest of the Purchasers including CSFBC, be
     likely to prejudice materially the success of the proposed issue, sale or
     distribution of the Offered Securities, whether in the primary market or in
     respect of dealings in the secondary market; (iv) any material suspension
     or material limitation of trading in securities generally on the New York
     Stock Exchange or PORTAL, or any setting of minimum prices for trading on
     such exchange or PORTAL or any suspension of trading of any securities of
     the Company on any exchange, PORTAL or in the over-the-counter market; (v)
     any banking moratorium declared by U.S. Federal or New York authorities;
     (vi) any major disruption of settlements of securities or clearance
     services in the United States; or (vii) any attack on, outbreak or
     escalation of hostilities or act of terrorism involving the United States
     or any declaration of war by Congress or any other national or
     international calamity or emergency if, in the judgment of a majority in
     interest of the Purchasers including CSFBC, the effect of any such attack,
     outbreak, escalation, act, declaration, calamity or emergency makes it
     impractical or inadvisable to proceed with completion of the offering or
     sale of and payment for the Offered Securities.

          (c)  The Purchasers shall have received an opinion, dated the Closing
     Date, of Katten Muchin Zavis Rosenman, counsel for the Company, that:

               (i)   Each of the Holding Company and the Company has been duly
          incorporated and is an existing corporation in good standing under the
          laws of the State of Delaware;

               (ii)  The Company has the requisite corporate power and authority
          to own its properties and conduct its business as described in the
          Offering Document; and the Company is duly qualified to do business as
          a foreign corporation in good standing in all jurisdictions listed in
          the schedule to such opinion;

               (iii) The Indenture has been duly authorized, executed and
          delivered; the Offered Securities have been duly authorized, executed,
          issued and delivered and conform to the description thereof contained
          in the Offering Document; and the Indenture and the Offered Securities
          constitute valid and legally binding obligations of the Company
          enforceable in accordance with their terms, subject to bankruptcy,
          insolvency, fraudulent transfer, reorganization, moratorium and
          similar laws of general applicability relating to or affecting
          creditors' rights and to general equity principles;

               (iv)  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 which is qualified
          thereunder.

               (v)   Each of the Holding Company and the Company is not and,
          after giving effect to the offering and sale of the Offered Securities
          and the application of the proceeds thereof as described in the
          Prospectus, will not be an "investment company" as defined in the
          Investment Company Act;

               (vi)  Assuming the accuracy of the representations of the
          Purchasers contained in this Agreement, no consent, approval,
          authorization or order of, or filing with, any

                                       14

<PAGE>

          governmental agency or body or any court is required for the
          consummation of the transactions contemplated by this Agreement or the
          Additional Documents in connection with the issuance or sale of the
          Offered Securities by the Company, except such as may be required
          under state securities laws except for: (i) the order of the
          Commission declaring the Exchange Offer Registration Statement or the
          Shelf Registration Statement effective; or (ii) filings or recordings
          necessary to perfect the Liens granted on all of the right, title and
          interest of the Company in the Collateral under the Security
          Documents;

               (vii)  Such counsel shall confirm that, based solely upon a
          review of a search of the dockets of the: (a) Los Angeles Superior
          Court, Central District; (b) Delaware Supreme Courts; (c) United
          States District Courts of Delaware and the Central District of
          California; and (d) United States Courts of Appeals in Delaware and
          California, copies of which are attached hereto as Exhibit A and
          inquiries of appropriate officers of the Company to such counsel's
          knowledge, there are no actions or proceedings against the Company, or
          any of its subsidiaries, pending or overtly threatened in writing,
          before any court, governmental agency or arbitrator, which: (i) seek
          to affect the enforceability of this Agreement, the Registration
          Rights Agreement, the Offered Securities or the Indenture; or (ii) are
          required to be described in the Offering Circular which are not
          described as required, as if the Offering Circular were a prospectus
          subject to the requirements of the Securities Act;

               (viii) Neither (i) the offer, sale or delivery of the Offered
          Securities in the manner contemplated in the Offering Circular and
          this Agreement nor (ii) the execution, delivery or performance by the
          Company of this Agreement, the Registration Rights Agreement or the
          Indenture, compliance by the Company with the provisions thereof nor
          consummation by the Company of the transactions contemplated thereby,
          will (a) violate the Certificate of Incorporation or by-laws of the
          Company or the Holding Company, (b) result in a material breach of, or
          constitute a material default under, any material contract,
          instrument, agreement, indenture, lease or other instrument filed by
          the Company with the Commission pursuant to its reporting under the
          Exchange Act (collectively, "Material Contracts"), or (c) other than
          as described in the Offering Circular with respect to the Liens in
          connection with the Security Agreement, Bank Agreements and the
          Holding Notes (as defined in the Offering Circular), will result in
          the creation or imposition of any Lien, charge or encumbrance upon any
          property or assets of the Company or its subsidiaries, pursuant to the
          terms of any Material Contract, nor will any such action result in any
          violation in any material respect of any law, regulation, judgment,
          injunction, order or decree known to such counsel and applicable to
          the Company or any of its subsidiaries or any of its properties;

               (ix)   Such counsel shall state that it has participated in
          conferences with officers and other representatives of the Company,
          the Purchasers and their counsel and representatives of the
          independent public accountants for the Company, at which conferences
          the contents of the Offering Circular, and related matters were
          discussed, and, although such counsel does not pass upon and do not
          assume any responsibility for the accuracy, completeness or fairness
          of the statements in the Offering Circular, any amendment thereof or
          supplement thereto (except as expressly provided in such opinion), on
          the basis of the foregoing (relying as to materiality to a large
          extent upon the opinions of officers and other representatives of the
          Company), no facts (other than the financial statements and related
          notes thereto and other financial information contained therein, as to
          which such counsel need not express a belief) have come to the
          attention of such counsel in the course of such participation or
          representation of the Company to lead such counsel to believe that the
          Offering Circular, or any amendment thereof, as of their dates or as
          of the date hereof, contains any untrue statement of material fact or
          omits to state a material fact

                                       15

<PAGE>

          required to be stated therein or necessary to make the statements
          therein, in light of the circumstances under which they were made, not
          misleading;

               (x)     This Agreement has been duly authorized, executed and
          delivered by the Company;

               (xi)    The Exchange Securities have been duly authorized by the
          Company; and when the Exchange Securities are issued, executed and
          authenticated in accordance with the terms of the Exchange Offer and
          the Indenture, the Exchange Securities will be entitled to the
          benefits of the Indenture and will be the valid and legally binding
          obligations of the Company, enforceable against the Company in
          accordance with their terms, subject to bankruptcy, insolvency,
          fraudulent transfer, reorganization, moratorium and similar laws of
          general applicability relating to or affecting creditors' rights and
          to general equity principles;

               (xii)   The Additional Documents have been duly authorized,
          executed and delivered by the Holding Company and the Company party
          thereto, and are a valid and binding agreements of the Holding Company
          and the Company party thereto, and the Additional Documents (excluding
          the Mortgages) are enforceable against the Holding Company and the
          Company party thereto in accordance with their terms, subject to
          bankruptcy, insolvency, fraudulent transfer, reorganization,
          moratorium and similar laws of general applicability relating to or
          affecting creditors' rights and to general equity principles;

               (xiii)  Assuming the due execution and delivery of the Security
          Agreement, the Security Agreement is in full force and effect and the
          provisions of the Security Agreement are effective to create in favor
          of the Trustee, a valid and enforceable Lien in the Company's rights
          in that portion of the Collateral which is subject to the UCC as in
          effect in the State of New York;

               (xiv)   Upon the filing of the financing statements to be filed
          in the office of the Secretary of State of the State of Delaware (the
          "Filing Office"), assuming that the representations made by the
          Company in the Security Documents with respect to the location and
          character of the Collateral are true and correct, all filings,
          registrations and recordings necessary to perfect the security
          interest granted to the Secured Parties under the Security Agreement
          in respect to all of the Collateral will have been made, to the extent
          that security interests therein can be perfected by filing financing
          statements under the Uniform Commercial Code as in effect in the State
          of Delaware (the "Delaware UCC");

               (xv)    Each of the Holding Company and the Company is a
          "registered organization" for purposes of and as defined in the
          Delaware UCC;

               (xvi)   To the knowledge of such counsel, except as described in
          the Offering Circular, no holder of any securities of the Company
          (except for the holders of the Notes) or any other person has the
          right to have any securities of the Company included in any
          registration statement contemplated by the Registration Rights
          Agreement.

               (xvii)  No registration under the Securities Act of the Offered
          Securities is required for the purchase and distribution of the
          Offered Securities as contemplated hereby assuming: (i) the accuracy
          of the Purchaser's representations set forth in Section 4 hereof; (ii)
          the accuracy of representations of the Company herein; (iii) the
          Purchasers due performance of their covenants herein; (iv) compliance
          by the Purchasers with the offering and transfer procedures for the
          Offered Securities as described in the Offering Circular; and

                                       16

<PAGE>

          (v) the purchasers to whom the Purchasers initially resell the Offered
          Securities having received a copy of the Offering Circular.

     The opinion of Katten Muchin Zavis Rosenman as described in Section 6(c)
above shall be rendered to you at the request of the Company and the Holding
Company and shall so state therein.

          (d) The Purchasers shall have received from Skadden, Arps, Slate,
     Meagher & Flom LLP, counsel for the Purchasers, such opinion or opinions,
     dated the Closing Date, with respect to the incorporation of the Company,
     the validity of the Offered Securities, the Offering Circular, the
     exemption from registration for the offer and sale of the Offered
     Securities by the Company to the several Purchasers and the resales by the
     several Purchasers as contemplated hereby and other related matters as
     CSFBC may require, and the Company shall have furnished to such counsel
     such documents as they request for the purpose of enabling them to pass
     upon such matters with reference to same in the Offering Circular. In
     rendering such opinion, Skadden, Arps, Slate, Meagher & Flom LLP may rely
     as to the incorporation of the Company and all other matters governed by
     Delaware law upon the opinion of Katten Muchin Zavis Rosenman referred to
     above.

          (e) The Purchasers shall have received a certificate, dated the
     Closing Date, of the President or any Vice President and a principal
     financial or accounting officer of the Company in which such officers, to
     the best of their knowledge after reasonable investigation and in their
     capacity as such officers on behalf of the Company, shall state that the
     representations and warranties of the Company in this Agreement are true
     and correct, that the Company has complied, in all material respects, with
     all agreements and satisfied, in all material respects, all conditions on
     its part to be performed or satisfied hereunder at or prior to the Closing
     Date, and that, subsequent to the dates of the most recent financial
     statements in the Offering Document there has been no material adverse
     change, nor any development or event that would reasonably likely result in
     a material adverse change, in the condition (financial or other), business,
     properties or results of operations of the Company and its subsidiaries
     taken as a whole except as set forth in or contemplated by the Offering
     Document or as described in such certificate.

          (f) The Purchasers shall have received a letter, dated the Closing
     Date, of Ernst & Young LLP which meets the requirements of subsection (a)
     of this Section, except that the specified date referred to in such
     subsection will be a date not more than three days prior to the Closing
     Date for the purposes of this subsection.

          (g) This Agreement, the Indenture and the Additional Documents will
     have been executed by each of the parties thereto on terms substantially as
     described in the Offering Circular and will be in full force and effect.
     The Company will deliver true and correct, conformed copies of this
     Agreement, the Indenture and the Additional Documents and any related
     documents, including any security agreements, to the Purchasers on or prior
     to the Closing Date.

          (h) The Purchaser shall have received true and correct copies of the
     Security Documents duly executed by the Company, as applicable, together
     with:

               (i)  duly executed financing statements or other documents under
          the provisions of the UCC or any other applicable state law in proper
          form for filing in each office where such filing is necessary or
          appropriate to grant to the Trustee the security interest of the
          character and priority contemplated by the Security Documents;

               (ii) certified copies of a similar search reports, dated a date
          reasonably near (but prior to), the Closing Date, listing all
          effective financing statements, which name such party

                                       17

<PAGE>

          as the debtor and which are filed in the jurisdictions in which
          filings are to be made pursuant to this Agreement and the other
          Security Documents, together with copies of such financing statements
          (none of which (other than financing statements (1) filed in favor of
          the Trustee, if such search report is current enough to list such
          financing statements, (2) being terminated pursuant to termination
          statements that are to be delivered to the Trustee, or (3) in respect
          of Permitted Liens) cover any of the Collateral described in the
          Security Agreement); and

               (iii) evidence that all other actions necessary to perfect and
          protect the Liens created by the Security Documents have been taken;

          the following documents and instruments with regard to each Mortgaged
          Property, providing for first priority mortgages:

                              (1) a Mortgage or other instrument or instruments
                       in recordable form sufficient to grant to the Trustee for
                       the benefit of the Secured Parties: (A) substantially the
                       same rights and remedies in respect of such real property
                       as granted thereto under the Mortgages executed and
                       delivered on the date of the Indenture; and (B) a valid
                       first-priority mortgage Lien on such real property
                       subject to no Liens other than Permitted Liens;

                              (2) either pro forma title insurance policies
                       setting forth the contemplated form of the mortgagee
                       policies of title insurance or title commitments for each
                       Jorgensen Real Property, insuring the Mortgage as a first
                       lien on the Jorgensen Real Property covered thereby;

                              (3) Uniform Commercial Code financing statements
                       necessary or desirable to perfect the valid,
                       first-priority lien granted by each Mortgage, subject to
                       no liens other than Permitted Liens; and

                              (4) policies or certificates of insurance with
                       respect to the insurance required to be maintained in
                       respect of the property covered by each Mortgage pursuant
                       to the terms of this Indenture and the other Note
                       Documents, naming the Trustee as loss payee and/or
                       additional named insured, as appropriate; and

                              (5) such other agreements, instruments, approvals,
                       consents, opinions or documents that are necessary in
                       order to perfect the grant by the Company of a
                       first-priority Lien in all the right, title and interest
                       of the Company in the Collateral.

               (i)   The Offered Securities shall have been listed and admitted
          to trading on PORTAL.

     Documents described as being "in the agreed form" are documents which are
in the forms which have been initialed for the purpose of identification by
Skadden, Arps, Slate, Meagher & Flom LLP, copies of which are held by the
Company and CSFBC, with such changes as CSFBC may approve.

     The Company will use its reasonable commercial efforts to obtain the
documents described in Section 1108 of the Indenture.

                                       18

<PAGE>

     The Company will furnish the Purchasers with such conformed copies of such
opinions, certificates, letters and documents as the Purchasers reasonably
request. CSFBC may in its sole discretion waive on behalf of the Purchasers
compliance with any conditions to the obligations of the Purchasers hereunder,
whether in respect of an Optional Closing Date or otherwise.

     7. Indemnification and Contribution.

          (a) The Company will indemnify and hold harmless each Purchaser, its
     affiliates, partners, directors and officers and each person, if any, who
     controls such Purchaser within the meaning of Section 15 of the Securities
     Act, against any losses, claims, damages or liabilities, joint or several,
     to which such Purchaser may become subject, under the Securities Act or the
     Exchange Act or otherwise, insofar as such losses, claims, damages or
     liabilities (or actions in respect thereof) arise out of or are based upon
     any untrue statement or alleged untrue statement of any material fact
     contained in the Offering Document, or any amendment or supplement thereto,
     or arise out of or are based upon the 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, including any losses, claims, damages or liabilities arising
     out of or based upon the Company's failure to perform its obligations under
     Section 5(a) of this Agreement, and will reimburse each Purchaser for any
     legal or other expenses reasonably incurred by such Purchaser in connection
     with investigating or defending any such loss, claim, damage, liability or
     action as such expenses are incurred; provided, however, that the Company
     will not be liable in any such case to the extent that any such loss,
     claim, damage or liability arises out of or is based upon an untrue
     statement or alleged untrue statement in or omission or alleged omission
     from any of such documents in reliance upon and in conformity with written
     information furnished to the Company by any Purchaser through CSFBC
     specifically for use therein, it being understood and agreed that the only
     such information consists of the information described as such in
     subsection (b) below.

          (b) Each Purchaser will severally and not jointly indemnify and hold
     harmless the Company, its directors and officers and each person, if any,
     who controls the Company within the meaning of Section 15 of the Securities
     Act, against any losses, claims, damages or liabilities to which the
     Company may become subject, under the Securities Act or the Exchange Act or
     otherwise, insofar as such losses, claims, damages or liabilities (or
     actions in respect thereof) arise out of or are based upon any untrue
     statement or alleged untrue statement of any material fact contained in the
     Offering Document, or any amendment or supplement thereto, or any related
     preliminary offering circular, or arise out of or are based upon the
     omission or the 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 to the extent, but
     only to the extent, that such untrue statement or alleged untrue statement
     or omission or alleged omission was made in reliance upon and in conformity
     with written information furnished to the Company by such Purchaser through
     CSFBC specifically for use therein, and will reimburse any legal or other
     expenses reasonably incurred by the Company in connection with
     investigating or defending any such loss, claim, damage, liability or
     action as such expenses are incurred, it being understood and agreed that
     the only such information furnished by any Purchaser consists of:

               (i)  the following information in the Offering Document furnished
          on behalf of each Purchaser: the information concerning over-allotment
          and stabilizing transactions appearing in the eighth paragraph under
          the caption "Plan of Distribution"; and

               (ii) the following information in the Offering Document furnished
          on behalf of the Purchasers:

                                       19

<PAGE>

               "Certain of the initial purchasers and their affiliates have
               performed investment banking, financial advisory and/or lending
               services for us and our affiliates from time to time, for which
               they have received customary compensation, and may do so in the
               future. Deutsche Bank Securities Inc. is lead arranger and sole
               book runner under our credit facility and may act in other
               capacities thereunder. DBTCA, an affiliate of Deutsche Bank
               Securities Inc., is the Agent for our credit facility. DLJ
               Capital Funding, Inc., an affiliate of Credit Suisse First Boston
               Corporation, is syndication agent for the lenders under our term
               loan. We will use the proceeds from this offering to repay our
               term loan and pay structuring and commitment fees to DBTCA, in
               connection with the amendment of our credit facility, among other
               things. See "Use of Proceeds."

               The decision of the initial purchasers to distribute the notes
               was made independently of the affiliates of the initial
               purchasers that are lenders under our credit facility and term
               loan, which lenders had no involvement in determining whether or
               when to distribute the notes under this offering or the terms of
               this offering. The initial purchasers will not receive any
               benefit from this offering other than the initial purchasers'
               discount to be provided by us or otherwise described herein;"

     provided, however, that the Purchasers shall not be liable for any losses,
     claims, damages or liabilities arising out of or based upon the Company's
     failure to perform its obligations under Section 5(a) of this Agreement.

         (c) Promptly after receipt by an indemnified party under this Section
     of notice of the commencement of any action, such indemnified party will,
     if a claim in respect thereof is to be made against the indemnifying party
     under subsection (a) or (b) above, unless and to the extent that such
     failure results in the forfeiture by the indemnifying party of substantial
     rights and defenses, notify the indemnifying party of the commencement
     thereof; but the omission so to notify the indemnifying party will not
     relieve it from any liability which it may have to any indemnified party
     otherwise than under subsection (a) or (b) above. In case any such action
     is brought against any indemnified party and it notifies the indemnifying
     party of the commencement thereof, the indemnifying party will be entitled
     to participate therein and, to the extent that it may wish, jointly with
     any other indemnifying party similarly notified, to assume the defense
     thereof, with counsel satisfactory to such indemnified party (who shall
     not, except with the consent of the indemnified party, be counsel to the
     indemnifying party), and after notice from the indemnifying party to such
     indemnified party of its election so to assume the defense thereof, the
     indemnifying party will not be liable to such indemnified party under this
     Section 7 for any legal or other expenses subsequently incurred by such
     indemnified party in connection with the defense thereof other than
     reasonable costs of investigation. In any such proceeding, any indemnified
     party shall have the right to retain its own counsel, but the fees and
     expenses of such counsel shall be at the expense of such indemnified party
     unless: (i) the indemnifying party and the indemnified party shall have
     mutually agreed to the contrary; (ii) the indemnifying party has failed
     within a reasonable time to retain counsel reasonably satisfactory to the
     indemnified party; (iii) the indemnified party shall have reasonably
     concluded that there may be legal defenses available to it that are
     different from or in addition to those available to the indemnifying party;
     or (iv) the named parties in any such proceeding (including any impleaded
     parties) include both the indemnifying party and the indemnified party and
     representation of both parties by the same counsel would be inappropriate
     due to actual or potential differing interests between them. It is
     understood and agreed that all fees and expenses shall be reimbursed to the
     indemnifed party by the indemnifying party as they are incurred. No
     indemnifying party shall, without the prior written consent of the
     indemnified party, effect any settlement of any pending or threatened
     action in respect of which any indemnified party is or could have been a
     party and indemnity could have been sought

                                       20

<PAGE>

         hereunder by such indemnified party unless such settlement includes:
         (x) an unconditional release of such indemnified party from all
         liability on any claims that are the subject matter of such action; and
         (y) does not include a statement as to or an admission of fault,
         culpability or failure to act by or on behalf of any indemnified party.

                 (d) If the indemnification provided for in this Section 7 is
         unavailable or insufficient to hold harmless an indemnified party under
         subsection (a) or (b) above, then each indemnifying party shall
         contribute to the amount paid or payable by such indemnified party as a
         result of the losses, claims, damages or liabilities referred to in
         subsection (a) or (b) above (i) in such proportion as is appropriate to
         reflect the relative benefits received by the Company on the one hand
         and the Purchasers on the other from the offering of the Offered
         Securities or (ii) if the allocation provided by clause (i) above is
         not permitted by applicable law, in such proportion as is appropriate
         to reflect not only the relative benefits referred to in clause (i)
         above but also the relative fault of the Company on the one hand and
         the Purchasers on the other in connection with the statements or
         omissions which resulted in such losses, claims, damages or liabilities
         as well as any other relevant equitable considerations. The relative
         benefits received by the Company on the one hand and the Purchasers on
         the other shall be deemed to be in the same proportion as the total net
         proceeds from the offering (before deducting expenses) received by the
         Company bear to the total discounts and commissions received by the
         Purchasers from the Company under this Agreement. The relative fault
         shall be determined by reference to, among other things, whether the
         untrue or alleged untrue statement of a material fact or the omission
         or alleged omission to state a material fact relates to information
         supplied by the Company or the Purchasers and the parties' relative
         intent, knowledge, access to information and opportunity to correct or
         prevent such untrue statement or omission. The amount paid by an
         indemnified party as a result of the losses, claims, damages or
         liabilities referred to in the first sentence of this subsection (d)
         shall be deemed to include any legal or other expenses reasonably
         incurred by such indemnified party in connection with investigating or
         defending any action or claim which is the subject of this subsection
         (d). Notwithstanding the provisions of this subsection (d), no
         Purchaser shall be required to contribute any amount in excess of the
         amount by which the total discounts, fees and commissions received by
         such Purchaser exceeds the amount of any damages which such 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 Securities Act) shall be entitled to contribution from any person
         who was not guilty of such fraudulent misrepresentation. The
         Purchasers' obligations in this subsection (d) to contribute are
         several in proportion to their respective purchase obligations and not
         joint.

                 (e) The obligations of the Company under this Section shall be
         in addition to any liability which the Company may otherwise have and
         shall extend, upon the same terms and conditions, to each person, if
         any, who controls any Purchaser within the meaning of the Securities
         Act or the Exchange Act; and the obligations of the Purchasers under
         this Section shall be in addition to any liability which the respective
         Purchasers may otherwise have and shall extend, upon the same terms and
         conditions, to each person, if any, who controls the Company within the
         meaning of the Securities Act or the Exchange Act.

         8. Default of Purchasers. If any Purchaser or Purchasers default in
their obligations to purchase Offered Securities hereunder and the aggregate
principal amount of Offered Securities that such defaulting Purchaser or
Purchasers agreed but failed to purchase does not exceed 10% of the total
principal amount of Offered Securities, CSFBC may make arrangements satisfactory
to the Company for the purchase of such Offered Securities by other persons,
including any of the Purchasers, but if no such arrangements are made by the
Closing Date, the non-defaulting Purchasers shall be obligated severally, in
proportion to their respective commitments hereunder, to purchase the Offered
Securities that such defaulting Purchasers agreed but failed to purchase. If any
Purchaser or Purchasers so default and the principal amount of Offered
Securities with respect

                                       21

<PAGE>

to which such default or defaults occur exceeds 10% of the aggregate principal
amount of Offered Securities and arrangements satisfactory to CSFBC and the
Company for the purchase of such Offered Securities by other persons are not
made within 36 hours after such default, this Agreement will terminate without
liability on the part of any non-defaulting Purchaser or the Company, except as
provided in Section 9. As used in this Agreement, the term "Purchaser" includes
any person substituted for a Purchaser under this Section. Nothing herein will
relieve a defaulting Purchaser from liability for its default.

         9.  Survival of Certain Representations and Obligations. The respective
indemnities, agreements, representations, warranties and other statements of the
Company and of the several Purchasers set forth in or made pursuant to this
Agreement will remain in full force and effect, regardless of any investigation,
or statement as to the results thereof, made by or on behalf of any Purchaser,
the Company or any of their respective representatives, officers or directors or
any controlling person, and will survive delivery of and payment for the Offered
Securities. If this Agreement is terminated pursuant to Section 8 or if for any
reason the purchase of the Offered Securities by the Purchasers is not
consummated, the Company shall remain responsible for the expenses to be paid or
reimbursed by it pursuant to Section 5 and the respective obligations of the
Company and the Purchasers pursuant to Section 7 shall remain in effect. If the
purchase of the Offered Securities by the Purchasers is not consummated for any
reason other than solely because of the termination of this Agreement pursuant
to Section 8 or the occurrence of any event specified in clause (iii), (iv),
(v), (vi) or (vii) of Section 6(b), the Company will reimburse the Purchasers
for all out-of-pocket expenses (including fees and disbursements of counsel)
reasonably incurred by them in connection with the offering of the Offered
Securities.

         10. Notices. All communications hereunder will be in writing and, if
sent to the Purchasers will be mailed, delivered or telegraphed and confirmed to
the Purchasers, c/o Credit Suisse First Boston Corporation, Eleven Madison
Avenue, New York, N.Y. 10010-3629, Attention: Investment Banking Department -
Transactions Advisory Group, or, if sent to the Company, will be mailed,
delivered or telegraphed and confirmed to it at 3050 East Birch Street, Brea, CA
92821, Attention: ; provided, however, that any notice to a Purchaser pursuant
to Section 7 will be mailed, delivered or telegraphed and confirmed to such
Purchaser.

         11. Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the
controlling persons referred to in Section 7, and no other person will have any
right or obligation hereunder, except that holders of Offered Securities shall
be entitled to enforce the agreements for their benefit contained in the second
and third sentences of Section 5(b) hereof against the Company as if such
holders were parties thereto.

         12. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Agreement.

         13. Applicable Law. This Agreement shall be governed by, and construed
in accordance with, the laws of the State of New York without regard to
principles of conflicts of laws.

         The Company hereby submits to the non-exclusive jurisdiction of the
Federal and state courts in the Borough of Manhattan in The City of New York in
any suit or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby.

                                       22

<PAGE>

         If the foregoing is in accordance with the Purchasers' understanding of
our agreement, kindly sign and return to us one of the counterparts hereof,
whereupon it will become a binding agreement between the Company and the several
Purchasers in accordance with its terms.

                                             Very truly yours,

                                             Earle M. Jorgensen Company

                                             By_______________________________
                                             Name:
                                             Title:

The foregoing Purchase Agreement
  is hereby confirmed and accepted
  as of the date first above written.

Credit Suisse First Boston Corporation
Deutsche Bank Securities Inc.
J.P. Morgan Securities Inc.

  Acting on behalf of themselves
  and as the Representatives of
  the several Purchasers

By: Credit Suisse First Boston Corporation

         By__________________________
         Name:
         Title:

<PAGE>

                                   SCHEDULE A

                                                       Principal Amount of
                                                       Offered Securities
                                                       $250,000,000

             Manager
             -------
Credit Suisse First Boston Corporation                 $100,000,000
Deutsche Bank Securities Inc.                          $100,000,000
J.P. Morgan Securities Inc.                            $ 50,000,000

                                                       ------------
                           Total                       $250,000,000
                                                       ============

<PAGE>

                                   SCHEDULE B

Indenture
Regulation Rights Agreement
Security Documents
Intercreditor Agreement
Bank Amendment Documents

<PAGE>

                                   SCHEDULE C

Earle M. Jorgensen (Canada), Inc.
Stainless Insurance, Ltd.

<PAGE>

                                    EXHIBIT I<PAGE>

                                                                    Exhibit 4.20

                                  $250,000,000

                           EARLE M. JORGENSEN COMPANY

                      9 3/4% Senior Secured Notes Due 2012

                          REGISTRATION RIGHTS AGREEMENT

                                                                    May 17, 2002

Credit Suisse First Boston Corporation
Deutsche Bank Securities Inc.
J.P. Morgan Securities Inc.,
    c/o Credit Suisse First Boston Corporation,
            Eleven Madison Avenue,
               New York, N.Y. 10010-3629

Dear Sirs:

         Earle M. Jorgensen Company, a Delaware corporation (the "Company"),
proposes to issue and sell to Credit Suisse First Boston Corporation, Deutsche
Bank Securities Inc. and J.P. Morgan Securities Inc. (collectively, the "Initial
Purchasers"), upon the terms set forth in a purchase agreement of even date
herewith (the "Purchase Agreement"), U.S. $250,000,000 aggregate principal
amount of its 9 3/4% senior secured notes due 2012 (the "Initial Securities").
The Initial Securities will be issued pursuant to an Indenture, dated as of
dated as of May 22, 2002 (the "Indenture"), between the Company and The Bank of
New York, as trustee (the "Trustee"). As an inducement to the Initial Purchasers
to enter into the Purchase Agreement, the Company agrees with the Initial
Purchasers, for the benefit of the Initial Purchasers and the holders of the
Securities (as defined below) (collectively the "Holders"), as follows:

         1. Registered Exchange Offer. Unless not permitted by applicable law
(after the Company has complied with the ultimate paragraph of this Section 1),
the Company shall prepare and, not later than 90 days (such 90th day being a
"Filing Deadline") after the date on which the Initial Purchasers purchase the
Initial Securities pursuant to the Purchase Agreement (the "Closing Date"), file
with the Securities and Exchange Commission (the "Commission") a registration
statement (the "Exchange Offer Registration Statement") on an appropriate form
under the Securities Act of 1933, as amended (the "Securities Act"), with
respect to a proposed offer (the "Registered Exchange Offer") to the Holders of
Transfer Restricted Securities (as defined in Section 6 hereof), who are not
prohibited by any law or policy of the Commission from participating in the
Registered Exchange Offer, to issue and deliver to such Holders, in exchange for
the Initial Securities, a like aggregate principal amount of debt securities of
the Company issued under the Indenture, identical in all material respects to
the Initial Securities and registered under the Securities Act (the "Exchange
Securities"). The Company shall use its commercially reasonable efforts to: (i)
cause such Exchange Offer Registration Statement to become effective under the
Securities Act within 150 days after the Closing Date (such 150th day being an
"Effectiveness Deadline"); and (ii) keep the Exchange Offer Registration
Statement effective for not less than 30 days (or longer, if required by
applicable law) after the date notice of the Registered Exchange Offer is mailed
to the Holders (such period being called the "Exchange Offer Registration
Period").

                                        1

<PAGE>

         If the Company commences the Registered Exchange Offer, the Company:
(i) will be entitled to consummate the Registered Exchange Offer 30 days after
such commencement (provided that the Company has accepted all the Initial
Securities theretofore validly tendered in accordance with the terms of the
Registered Exchange Offer); and (ii) will be required to consummate the
Registered Exchange Offer no later than 40 days after the date on which the
Exchange Offer Registration Statement is declared effective (such 40th day being
the "Consummation Deadline").

         Following the declaration of the effectiveness of the Exchange Offer
Registration Statement, the Company shall promptly commence the Registered
Exchange Offer, it being the objective of such Registered Exchange Offer to
enable each Holder of Transfer Restricted Securities electing to exchange the
Initial Securities for Exchange Securities (assuming that such Holder is not an
affiliate of the Company within the meaning of the Securities Act, acquires the
Exchange Securities in the ordinary course of such Holder's business and has no
arrangements with any person to participate in the distribution of the Exchange
Securities and is not prohibited by any law or policy of the Commission from
participating in the Registered Exchange Offer) to trade such Exchange
Securities from and after their receipt without any limitations or restrictions
under the Securities Act and without material restrictions under the securities
laws of the several states of the United States.

         The Company acknowledges that, pursuant to current interpretations by
the Commission's staff of Section 5 of the Securities Act, in the absence of an
applicable exemption therefrom: (i) each Holder which is a broker-dealer
electing to exchange Initial Securities, acquired for its own account as a
result of market making activities or other trading activities, for Exchange
Securities (an "Exchanging Dealer"), is required to deliver a prospectus
containing the information set forth in (a) Annex A hereto on the cover; (b)
Annex B hereto in the "Exchange Offer Procedures" section and the "Purpose of
the Exchange Offer" section; and (c) Annex C hereto in the "Plan of
Distribution" section of such prospectus in connection with a sale of any such
Exchange Securities received by such Exchanging Dealer pursuant to the
Registered Exchange Offer; and (ii) an Initial Purchaser that elects to sell
Securities (as defined below) acquired in exchange for Initial Securities
constituting any portion of an unsold allotment, is required to deliver a
prospectus containing the information required by Items 507 or 508 of Regulation
S-K under the Securities Act, as applicable, in connection with such sale.

         The Company shall use its commercially reasonable efforts to keep the
Exchange Offer Registration Statement effective and to amend and supplement the
prospectus contained therein, in order to permit such prospectus to be lawfully
delivered by all persons subject to the prospectus delivery requirements of the
Securities Act for such period of time as such persons must comply with such
requirements in order to resell the Exchange Securities; provided, however,
that: (i) in the case where such prospectus and any amendment or supplement
thereto must be delivered by an Exchanging Dealer or an Initial Purchaser, such
period shall be the lesser of 180 days and the date on which all Exchanging
Dealers and the Initial Purchasers have sold all Exchange Securities held by
them (unless such period is extended pursuant to Section 3(j) below); and (ii)
the Company shall make such prospectus and any amendment or supplement thereto
available to any broker-dealer for use in connection with any resale of any
Exchange Securities for a period of not less than 180 days after the
consummation of the Registered Exchange Offer.

         If, upon consummation of the Registered Exchange Offer, any Initial
Purchaser holds Initial Securities acquired by it as part of its initial
distribution, the Company, simultaneously with the delivery of the Exchange
Securities pursuant to the Registered Exchange Offer, shall issue and deliver to
such Initial Purchaser upon the written request of such Initial Purchaser, in
exchange (the "Private Exchange") for the Initial Securities held by such
Initial Purchaser, a like principal amount of debt securities of the Company
issued under the Indenture and identical in all material respects to the Initial
Securities (the "Private Exchange Securities"). The Initial Securities, the
Exchange Securities and the Private Exchange Securities are herein collectively
called the "Securities".

         In connection with the Registered Exchange Offer, the Company shall:

                                        2

<PAGE>

                  (a) mail to each Holder a copy of the prospectus forming part
         of the Exchange Offer Registration Statement, together with an
         appropriate letter of transmittal and related documents;

                  (b) keep the Registered Exchange Offer open for not less than
         30 days (or longer, if required by applicable law) after the date
         notice thereof is mailed to the Holders;

                  (c) utilize the services of a depositary for the Registered
         Exchange Offer with an address in the Borough of Manhattan, The City of
         New York, which may be the Trustee or an affiliate of the Trustee;

                  (d) permit Holders to withdraw tendered Securities at any time
         prior to the close of business, New York time, on the last business day
         on which the Registered Exchange Offer shall remain open; and

                  (e) otherwise comply with all applicable laws.

         As soon as practicable after the close of the Registered Exchange Offer
or the Private Exchange, as the case may be, the Company shall:

                  (x) accept for exchange all the Securities validly tendered
         and not withdrawn pursuant to the Registered Exchange Offer and the
         Private Exchange;

                  (y) deliver to the Trustee for cancellation all the Initial
         Securities so accepted for exchange; and

                  (z) cause the Trustee to authenticate and deliver promptly to
         each Holder of the Initial Securities, Exchange Securities or Private
         Exchange Securities, as the case may be, equal in principal amount to
         the Initial Securities of such Holder so accepted for exchange.

         The Indenture will provide that the Exchange Securities will not be
subject to the transfer restrictions set forth in the Indenture and that all the
Securities will vote and consent together on all matters as one class and that
none of the Securities will have the right to vote or consent as a class
separate from one another on any matter.

         Interest on each Exchange Security and Private Exchange Security issued
pursuant to the Registered Exchange Offer and in the Private Exchange will
accrue from the last interest payment date on which interest was paid on the
Initial Securities surrendered in exchange therefor or, if no interest has been
paid on the Initial Securities, from the date of original issue of the Initial
Securities.

         Each Holder participating in the Registered Exchange Offer shall be
required to represent to the Company that at the time of the consummation of the
Registered Exchange Offer: (i) any Exchange Securities received by such Holder
will be acquired in the ordinary course of business; (ii) such Holder will have
no arrangements or understanding with any person to participate in the
distribution of the Securities or the Exchange Securities within the meaning of
the Securities Act; (iii) such Holder is not an "affiliate," as defined in Rule
405 of the Securities Act, of the Company or if it is an affiliate, such Holder
will comply with the registration and prospectus delivery requirements of the
Securities Act to the extent applicable; (iv) if such Holder is not a
broker-dealer, that it is not engaged in, and does not intend to engage in, the
distribution of the Exchange Securities; and (v) if such Holder is a
broker-dealer, that it will receive Exchange Securities for its own account in
exchange for Initial Securities that were acquired as a result of market-making
activities or other trading activities and that it will be required to
acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities.

                                        3

<PAGE>

         Notwithstanding any other provisions hereof, the Company will ensure
that: (i) any Exchange Offer Registration Statement and any amendment thereto
and any prospectus forming part thereof and any supplement thereto complies in
all material respects with the Securities Act and the rules and regulations
thereunder; (ii) any Exchange Offer Registration Statement and any amendment
thereto does not, when it becomes effective, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading; and (iii) any
prospectus forming part of any Exchange Offer Registration Statement, and any
supplement to such prospectus, does not include an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

         If following the date hereof there has been announced a change in
Commission policy with respect to exchange offers that in the reasonable opinion
of counsel to the Company raises a substantial question as to whether the
Registered Exchange Offer is permitted y applicable federal law, the Company
will seek a no action letter or other favorable decision from the Commission
allowing the Company to consummate the Registered Exchange Offer. The Company
will pursue the issuance of such a decision to the Commission staff level. In
connection with the foregoing, the Company will take all such other actions as
may be requested by the Commission or otherwise required in connection with the
issuance of such decision, including without limitation: (i) participating in
telephonic conferences with the Commission; (ii) delivering to the Commission
staff an analysis prepared by counsel to the Company setting forth the legal
basis, if any, upon which such counsel has concluded that the Registered
Exchange Offer should be permitted; and (iii) diligently pursuing a resolution
(which need not be favorable) by the Commission staff.

         2. Shelf Registration. If (i) the Exchange Offer is not permitted by
applicable law (after the Company has complied with the procedures set forth in
the last paragraph of Section 1 or (ii) if any Holder of Transfer Restricted
Securities shall notify the Company within 20 Business Days following the
Consummation Deadline that (A) such Holder was prohibited by law or Commission
policy from participating in the Exchange Offer or (B) such Holder may not
resell the Series B Notes acquired by it in the Exchange Offer to the public
without delivering a prospectus and the Prospectus contained in the Exchange
Offer Registration Statement is not appropriate or available for such resales by
such Holder or (C) such Holder is a Broker-Dealer and holds Series A Notes
acquired directly from the Company or any of its Affiliates, then the Company
shall take the following actions (the date on which any of the conditions
described in the foregoing clauses (i) through (iii) occur, including in the
case of clause (ii) the receipt of the required notice, being a "Trigger Date"):

                  (a) The Company shall promptly (but in no event more than 90
         days after the Trigger Date (such 90th day being a "Filing Deadline"))
         file with the Commission and thereafter use its commercially reasonable
         efforts to cause to be declared effective no later than 150 days after
         the Trigger Date (such 150th day being an "Effectiveness Deadline") a
         registration statement (the "Shelf Registration Statement" and,
         together with the Exchange Offer Registration Statement, a
         "Registration Statement") on an appropriate form under the Securities
         Act relating to the offer and sale of the Transfer Restricted
         Securities by the Holders thereof from time to time in accordance with
         the methods of distribution set forth in the Shelf Registration
         Statement and Rule 415 under the Securities Act (hereinafter, the
         "Shelf Registration"); provided, however, that no Holder (other than an
         Initial Purchaser) shall be entitled to have the Securities held by it
         covered by such Shelf Registration Statement unless such Holder agrees
         in writing to be bound by all the provisions of this Agreement
         applicable to such Holder.

                  (b) The Company shall use its best efforts to keep the Shelf
         Registration Statement continuously effective in order to permit the
         prospectus included therein to be lawfully delivered by the Holders of
         the relevant Securities, for a period of two years (or for such longer
         period if extended pursuant to Section 3(j) below) from the date of its
         effectiveness or such shorter period that will terminate when all the
         Securities covered by the Shelf Registration Statement: (i) have

                                        4

<PAGE>

         been sold pursuant thereto; or (ii) are no longer restricted securities
         (as defined in Rule 144 under the Securities Act, or any successor rule
         thereof). The Company shall be deemed not to have used its best efforts
         to keep the Shelf Registration Statement effective during the requisite
         period if it voluntarily takes any action that would result in Holders
         of Securities covered thereby not being able to offer and sell such
         Securities during that period, unless such action is required by
         applicable law.

                  (c) Notwithstanding any other provisions of this Agreement to
         the contrary, the Company shall cause the Shelf Registration Statement
         and the related prospectus and any amendment or supplement thereto, as
         of the effective date of the Shelf Registration Statement, amendment or
         supplement: (i) to comply in all material respects with the applicable
         requirements of the Securities Act and the rules and regulations of the
         Commission: and (ii) not to contain any untrue statement of a material
         fact or omit to state a material fact required to be stated therein or
         necessary in order to make the statements therein, in light of the
         circumstances under which they were made, not misleading.

         3. Registration Procedures. In connection with any Shelf Registration
contemplated by Section 2 hereof and, to the extent applicable, any Registered
Exchange Offer contemplated by Section 1 hereof, the following provisions shall
apply:

                  (a) The Company shall: (i) furnish to each Initial Purchaser,
         prior to the filing thereof with the Commission, a copy of the
         Registration Statement and each amendment thereof and each supplement,
         if any, to the prospectus included therein and, in the event that an
         Initial Purchaser (with respect to any portion of an unsold allotment
         from the original offering) is participating in the Registered Exchange
         Offer or the Shelf Registration Statement, the Company shall use its
         commercially reasonable efforts to reflect in each such document, when
         so filed with the Commission, such comments as such Initial Purchaser
         reasonably may propose; (ii) include the information set forth in Annex
         A hereto on the cover, in Annex B hereto in the "Exchange Offer
         Procedures" section and the "Purpose of the Exchange Offer" section and
         in Annex C hereto in the "Plan of Distribution" section of the
         prospectus forming a part of the Exchange Offer Registration Statement
         and include the information set forth in Annex D hereto in the Letter
         of Transmittal delivered pursuant to the Registered Exchange Offer;
         (iii) if reasonably requested by an Initial Purchaser, include the
         information required by Items 507 or 508 of Regulation S-K under the
         Securities Act, as applicable, in the prospectus forming a part of the
         Exchange Offer Registration Statement; (iv) include within the
         prospectus contained in the Exchange Offer Registration Statement a
         section entitled "Plan of Distribution," reasonably acceptable to the
         Initial Purchasers, which shall contain a summary statement of the
         positions taken or policies made by the staff of the Commission with
         respect to the potential "underwriter" status of any broker-dealer that
         is the beneficial owner (as defined in Rule 13d-3 under the Securities
         Exchange Act of 1934, as amended (the "Exchange Act")) of Exchange
         Securities received by such broker-dealer in the Registered Exchange
         Offer (a "Participating Broker-Dealer"), whether such positions or
         policies have been publicly disseminated by the staff of the Commission
         or such positions or policies, in the reasonable judgment of the
         Initial Purchasers based upon advice of counsel (which may be in-house
         counsel), represent the prevailing views of the staff of the
         Commission; and (v) in the case of a Shelf Registration Statement,
         include the names of the Holders who propose to sell Securities
         pursuant to the Shelf Registration Statement as selling
         securityholders.

                  (b) The Company shall give written notice to the Initial
         Purchasers, the Holders of the Securities and any Participating
         Broker-Dealer from whom the Company has received at least five business
         days prior written notice that it will be a Participating Broker-Dealer
         in the Registered Exchange Offer (which notice pursuant to clauses
         (ii)-(v) hereof shall be accompanied by an instruction to suspend the
         use of the prospectus until the requisite changes have been made):

                                        5

<PAGE>

                           (i)   when the Registration Statement or any
                  amendment thereto has been filed with the Commission and when
                  the Registration Statement or any post-effective amendment
                  thereto has become effective;

                           (ii)  of any request by the Commission for amendments
                  or supplements to the Registration Statement or the prospectus
                  included therein or for additional information;

                           (iii) of the issuance by the Commission of any stop
                  order suspending the effectiveness of the Registration
                  Statement or the initiation of any proceedings for that
                  purpose;

                           (iv)  of the receipt by the Company or its legal
                  counsel of any notification with respect to the suspension of
                  the qualification of the Securities for sale in any
                  jurisdiction or the initiation or threatening of any
                  proceeding for such purpose; and

                           (v)   of the happening of any event that requires the
                  Company to make changes in the Registration Statement or the
                  prospectus in order that the Registration Statement or the
                  prospectus do not contain an untrue statement of a material
                  fact nor omit to state a material fact required to be stated
                  therein or necessary to make the statements therein (in the
                  case of the prospectus, in light of the circumstances under
                  which they were made) not misleading.

                  (c) The Company shall make every reasonable effort to obtain
         the withdrawal at the earliest possible time, of any order suspending
         the effectiveness of the Registration Statement.

                  (d) The Company shall furnish to each Holder of Securities
         included within the coverage of the Shelf Registration, without charge,
         at least one copy of the Shelf Registration Statement and any
         post-effective amendment thereto, including financial statements and
         schedules, and, if the Holder so requests in writing, all exhibits
         thereto (including those, if any, incorporated by reference).

                  (e) The Company shall deliver to each Exchanging Dealer and
         each Initial Purchaser, and to any other Holder who so requests,
         without charge, at least one copy of the Exchange Offer Registration
         Statement and any post-effective amendment thereto, including financial
         statements and schedules, and, if any Initial Purchaser or any such
         Holder requests, all exhibits thereto (including those incorporated by
         reference).

                  (f) The Company shall, during the Shelf Registration Period,
         deliver to each Holder of Securities included within the coverage of
         the Shelf Registration, without charge, as many copies of the
         prospectus (including each preliminary prospectus) included in the
         Shelf Registration Statement and any amendment or supplement thereto as
         such person may reasonably request. The Company consents, subject to
         the provisions of this Agreement, to the use, in accordance with all
         applicable laws, of the prospectus or any amendment or supplement
         thereto by each of the selling Holders of the Securities in connection
         with the offering and sale of the Securities covered by the prospectus,
         or any amendment or supplement thereto, included in the Shelf
         Registration Statement.

                  (g) The Company shall deliver to each Initial Purchaser, any
         Exchanging Dealer, any Participating Broker-Dealer and such other
         persons required to deliver a prospectus following the Registered
         Exchange Offer, without charge, as many copies of the final prospectus
         included in the Exchange Offer Registration Statement and any amendment
         or supplement thereto as such persons may reasonably request. The
         Company consents, subject to the provisions of this Agreement, to the
         use, in accordance with all applicable laws, of the prospectus or any
         amendment or supplement thereto by any Initial Purchaser, if necessary,
         any Participating Broker-Dealer and such other

                                        6

<PAGE>

         persons required to deliver a prospectus following the Registered
         Exchange Offer in connection with the offering and sale of the Exchange
         Securities covered by the prospectus, or any amendment or supplement
         thereto, included in such Exchange Offer Registration Statement.

                  (h) Prior to any public offering of the Securities pursuant to
         any Registration Statement the Company shall use commercially
         reasonable efforts to register or qualify or cooperate with the Holders
         of the Securities included therein and their respective counsel in
         connection with the registration or qualification of the Securities for
         offer and sale under the securities or "blue sky" laws of such states
         of the United States as any Holder of the Securities reasonably
         requests in writing and do any and all other acts or things necessary
         or advisable to enable the offer and sale in such jurisdictions of the
         Securities covered by such Registration Statement; provided, however,
         that the Company shall not be required to (i) qualify generally to do
         business in any jurisdiction where it is not then so qualified or (ii)
         take any action which would subject it to general service of process or
         to taxation in any jurisdiction where it is not then so subject.

                  (i) The Company shall cooperate with the Holders of the
         Securities to facilitate the timely preparation and delivery of
         certificates representing the Securities to be sold pursuant to any
         Registration Statement free of any restrictive legends and in such
         denominations and registered in such names as the Holders may request a
         reasonable period of time prior to sales of the Securities pursuant to
         such Registration Statement.

                  (j) Upon the occurrence of any event contemplated by
         paragraphs (ii) through (v) of Section 3(b) above during the period for
         which the Company is required to maintain an effective Registration
         Statement, the Company shall promptly prepare and file a post-effective
         amendment to the Registration Statement or a supplement to the related
         prospectus and any other required document so that, as thereafter
         delivered to Holders of the Securities or purchasers of Securities, the
         prospectus will not contain an untrue statement of a material fact or
         omit to state any material fact required to be stated therein or
         necessary to make the statements therein, in light of the circumstances
         under which they were made, not misleading. If the Company notifies the
         Initial Purchasers, the Holders of the Securities and any known
         Participating Broker-Dealer in accordance with paragraphs (ii) through
         (v) of Section 3(b) above to suspend the use of the prospectus until
         the requisite changes to the prospectus have been made, then the
         Initial Purchasers, the Holders of the Securities and any such
         Participating Broker-Dealers shall suspend use of such prospectus, and
         the period of effectiveness of the Shelf Registration Statement
         provided for in Section 2(b) above and the Exchange Offer Registration
         Statement provided for in Section 1 above shall each be extended by the
         number of days from and including the date of the giving of such notice
         to and including the date when the Initial Purchasers, the Holders of
         the Securities and any known Participating Broker-Dealer shall have
         received such amended or supplemented prospectus pursuant to this
         Section 3(j).

                  (k) Not later than the effective date of the applicable
         Registration Statement, the Company will provide a CUSIP number for the
         Initial Securities, the Exchange Securities or the Private Exchange
         Securities, as the case may be, and provide the applicable trustee with
         printed certificates for the Initial Securities, the Exchange
         Securities or the Private Exchange Securities, as the case may be, in a
         form eligible for deposit with The Depository Trust Company.

                  (l) The Company will comply with all rules and regulations of
         the Commission to the extent and so long as they are applicable to the
         Registered Exchange Offer or the Shelf Registration and will make
         generally available to its security holders (or otherwise provide in
         accordance with Section 11(a) of the Securities Act) an earnings
         statement satisfying the provisions of Section 11(a) of the Securities
         Act, no later than 45 days after the end of a 12-month period (or 90
         days, if such period is a fiscal year) beginning with the first month
         of the Company's

                                        7

<PAGE>

         first fiscal quarter commencing after the effective date of the
         Registration Statement, which statement shall cover such 12-month
         period.

                  (m) The Company shall cause the Indenture to be qualified
         under the Trust Indenture Act of 1939, as amended, in a timely manner
         and containing such changes, if any, as shall be necessary for such
         qualification. In the event that such qualification would require the
         appointment of a new trustee under the Indenture, the Company shall
         appoint a new trustee thereunder pursuant to the applicable provisions
         of the Indenture.

                  (n) The Company may require each Holder of Securities to be
         sold pursuant to the Shelf Registration Statement to furnish to the
         Company such information regarding the Holder and the distribution of
         the Securities as the Company may from time to time reasonably require
         for inclusion in the Shelf Registration Statement, and the Company may
         exclude from such registration the Securities of any Holder that
         unreasonably fails to furnish such information within a reasonable time
         after receiving such request.

                  (o) The Company shall enter into such customary agreements
         (including, if requested, an underwriting agreement in customary form)
         and take all such other action, if any, as any Holder of the Securities
         shall reasonably request in order to facilitate the disposition of the
         Securities pursuant to any Shelf Registration.

                  (p) In the case of any Shelf Registration, the Company shall:
         (i) make reasonably available for inspection by the Holders of the
         Securities, any underwriter participating in any disposition pursuant
         to the Shelf Registration Statement and any attorney, accountant or
         other agent retained by the Holders of the Securities or any such
         underwriter all relevant financial and other records, pertinent
         corporate documents and properties of the Company; and (ii) cause the
         Company's officers, directors, employees, accountants and auditors to
         supply all relevant information reasonably requested by the Holders of
         the Securities or any such underwriter, attorney, accountant or agent
         in connection with the Shelf Registration Statement, in each case, as
         shall be reasonably necessary to enable such persons, to conduct a
         reasonable investigation within the meaning of Section 11 of the
         Securities Act; provided, however, that the foregoing inspection and
         information gathering shall be coordinated on behalf of the Initial
         Purchasers by you and on behalf of the other parties, by one counsel
         designated by and on behalf of such other parties as described in
         Section 4 hereof.

                  (q) In the case of any Shelf Registration, the Company, if
         requested by any Holder of Securities covered thereby, shall cause: (i)
         its counsel to deliver an opinion and updates thereof relating to the
         Securities in customary form addressed to such Holders and the managing
         underwriters, if any, thereof and dated, in the case of the initial
         opinion, the effective date of such Shelf Registration Statement (it
         being agreed that the matters to be covered by such opinion shall
         include, without limitation, the due incorporation and good standing of
         the Company and its subsidiaries; the qualification of the Company and
         its subsidiaries to transact business as foreign corporations; the due
         authorization, execution and delivery of the relevant agreement of the
         type referred to in Section 3(o) hereof; the due authorization,
         execution, authentication and issuance, and the validity and
         enforceability, of the applicable Securities; the absence of material
         legal or governmental proceedings involving the Company and its
         subsidiaries; the absence of governmental approvals required to be
         obtained in connection with the Shelf Registration Statement, the
         offering and sale of the applicable Securities, or any agreement of the
         type referred to in Section 3(o) hereof; the compliance as to form of
         such Shelf Registration Statement and any documents incorporated by
         reference therein and of the Indenture with the requirements of the
         Securities Act and the Trust Indenture Act, respectively; and, as of
         the date of the opinion and as of the effective date of the Shelf
         Registration Statement or most recent post-effective amendment thereto,
         as the case may be, the absence from such Shelf Registration Statement
         and the prospectus

                                        8

<PAGE>

         included therein, as then amended or supplemented, and from any
         documents incorporated by reference therein of an untrue statement of a
         material fact or the omission to state therein a material fact required
         to be stated therein or necessary to make the statements therein not
         misleading (in the case of any such documents, in the light of the
         circumstances existing at the time that such documents were filed with
         the Commission under the Exchange Act); (ii) its officers to execute
         and deliver all customary documents and certificates and updates
         thereof requested by any underwriters of the applicable Securities; and
         (iii) its independent public accountants to provide to the selling
         Holders of the applicable Securities and any underwriter therefor a
         comfort letter in customary form and covering matters of the type
         customarily covered in comfort letters in connection with primary
         underwritten offerings, subject to receipt of appropriate documentation
         as contemplated, and only if permitted, by Statement of Auditing
         Standards No. 72.

                  (r) In the case of the Registered Exchange Offer, if requested
         by any Initial Purchaser or any known Participating Broker-Dealer, the
         Company shall cause: (i) its counsel to deliver to such Initial
         Purchaser or such Participating Broker-Dealer a signed opinion in the
         form set forth in Section 6(c) of the Purchase Agreement with such
         changes as are customary in connection with the preparation of a
         Registration Statement; and (ii) its independent public accountants to
         deliver to such Initial Purchaser or such Participating Broker-Dealer a
         comfort letter, in customary form, meeting the requirements as to the
         substance thereof as set forth in Section 6(a) and (b) of the Purchase
         Agreement, with appropriate date changes.

                  (s) If a Registered Exchange Offer or a Private Exchange is to
         be consummated, upon delivery of the Initial Securities by Holders to
         the Company (or to such other Person as directed by the Company) in
         exchange for the Exchange Securities or the Private Exchange
         Securities, as the case may be, the Company shall mark, or caused to be
         marked, on the Initial Securities so exchanged that such Initial
         Securities are being canceled in exchange for the Exchange Securities
         or the Private Exchange Securities, as the case may be; in no event
         shall the Initial Securities be marked as paid or otherwise satisfied.

                  (t) The Company will use commercially reasonable efforts to:
         (a) if the Initial Securities have been rated prior to the initial sale
         of such Initial Securities, confirm such ratings will apply to the
         Securities covered by a Registration Statement; or (b) if the Initial
         Securities were not previously rated, cause the Securities covered by a
         Registration Statement to be rated with the appropriate rating
         agencies, if so requested by Holders of a majority in aggregate
         principal amount of Securities covered by such Registration Statement,
         or by the managing underwriters, if any.

                  (u) In the event that any broker-dealer registered under the
         Exchange Act shall underwrite any Securities or participate as a member
         of an underwriting syndicate or selling group or "assist in the
         distribution" (within the meaning of the Conduct Rules (the "Rules") of
         the National Association of Securities Dealers, Inc. ("NASD")) thereof,
         whether as a Holder of such Securities or as an underwriter, a
         placement or sales agent or a broker or dealer in respect thereof, or
         otherwise, the Company will assist such broker-dealer in complying with
         the requirements of such Rules, including, without limitation, by: (i)
         if such Rules, including Rule 2720, shall so require, engaging a
         "qualified independent underwriter" (as defined in Rule 2720) to
         participate in the preparation of the Registration Statement relating
         to such Securities, to exercise usual standards of due diligence in
         respect thereto and, if any portion of the offering contemplated by
         such Registration Statement is an underwritten offering or is made
         through a placement or sales agent, to recommend the yield of such
         Securities; (ii) indemnifying any such qualified independent
         underwriter to the extent of the indemnification of underwriters
         provided in Section 5 hereof; and (iii) providing such information to
         such broker-dealer as may be required in order for such broker-dealer
         to comply with the requirements of the Rules.

                                        9

<PAGE>

                  (v)   The Company shall use its commercially reasonable
         efforts to take all other steps necessary to effect the registration of
         the Securities covered by a Registration Statement contemplated hereby.

                  (w)   In connection with any Shelf Registration contemplated
         by Section 2 hereof, each Holder agrees by acquisition of a Transfer
         Restricted Security that, upon receipt of the notice referred to in
         paragraphs (iii) through (v) of Section 3(b) hereof (in each case, a
         "Suspension Notice"), such Holder will forthwith discontinue
         disposition of Transfer Restricted Securities pursuant to the
         applicable Shelf Registration Statement until: (i) such Holder is
         advised in writing by the Company that the use of the prospectus
         included in the Shelf Registration Statement may be resumed, and has
         received copies of any additional or supplemental filings that are
         incorporated by reference in such prospectus; or (ii) such Holder has
         received copies of the supplemented or amended prospectus contemplated
         by Section 3(j) hereof (in each case, the "Recommencement Date"). Each
         Holder receiving a Suspension Notice hereby agrees that it will either:
         (i) discard or destroy any prospectuses, other than permanent file
         copies then in such Holder's possession which have been replaced by the
         Company with more recently dated prospectuses; or (ii) deliver to the
         Company (at the Company's expense) all copies, other than permanent
         file copies, then in such Holder's possession of the prospectus
         covering such Transfer Restricted Securities that was current at the
         time of receipt of the Suspension Notice. In the event that the Company
         shall give a Suspension Notice, the time period regarding the
         effectiveness of such Shelf Registration Statement set forth in Section
         2 hereof shall be extended by a number of days equal in the period from
         and including the date of delivery of the Suspension Notice and
         including the

         4.  Registration Expenses. (a) All expenses incident to the Company's
performance of and compliance with this Agreement will be borne by the Company,
regardless of whether a Registration Statement is ever filed or becomes
effective, including without limitation;

                  (i)   all registration and filing fees and expenses;

                  (ii)  all fees and expenses of compliance with federal
         securities and state "blue sky" or securities laws;

                  (iii) all expenses of printing (including printing
         certificates for the Securities to be issued in the Registered Exchange
         Offer and the Private Exchange and printing of Prospectuses), messenger
         and delivery services and telephone;

                  (iv)  all fees and disbursements of counsel for the Company;

                  (v)   all application and filing fees in connection with
         listing the Exchange Securities on a national securities exchange or
         automated quotation system pursuant to the requirements hereof; and

                  (vi)  all fees and disbursements of independent certified
         public accountants of the Company (including the expenses of any
         special audit and comfort letters required by or incident to such
         performance).

The Company will bear its internal expenses (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expenses of any annual audit and the fees and expenses
of any person, including special experts, retained by the Company.

         (b) In connection with any Registration Statement required by this
Agreement, the Company will reimburse the Initial Purchasers and the Holders of
Transfer Restricted Securities who are tendering Initial Securities in the
Registered Exchange Offer and/or selling or reselling Securities pursuant to the
"Plan of

                                       10

<PAGE>

Distribution" contained in the Exchange Offer Registration Statement or the
Shelf Registration Statement, as applicable, for the reasonable fees and
disbursements of not more than one counsel, who shall be Skadden, Arps, Slate,
Meagher & Flom LLP unless another firm shall be chosen by the Holders of a
majority in principal amount of the Transfer Restricted Securities for whose
benefit such Registration Statement is being prepared.

         5.  Indemnification. (a) The Company agrees to indemnify and hold
harmless each Holder of the Securities, any Participating Broker-Dealer and each
person, if any, who controls such Holder or such Participating Broker-Dealer
within the meaning of the Securities Act or the Exchange Act (each Holder, any
Participating Broker-Dealer and such controlling persons are referred to
collectively as the "Indemnified Parties") from and against any losses, claims,
damages or liabilities, joint or several, or any actions in respect thereof
(including, but not limited to, any losses, claims, damages, liabilities or
actions relating to purchases and sales of the Securities) to which each
Indemnified Party may become subject under the Securities Act, the Exchange Act
or otherwise, insofar as such losses, claims, damages, liabilities or actions
arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact contained in a Registration Statement or prospectus or in any
amendment or supplement thereto or in any preliminary prospectus relating to a
Shelf Registration, or arise out of, or are based upon, the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and shall reimburse, as
incurred, the Indemnified Parties for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action in respect thereof; provided, however, that:
(i) the Company shall not be liable in any such case to the extent that such
loss, claim, damage or liability arises out of or is based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in a
Registration Statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus relating to a Shelf Registration in reliance
upon and in conformity with written information pertaining to such Holder and
furnished to the Company by or on behalf of such Holder specifically for
inclusion therein; and (ii) with respect to any untrue statement or omission or
alleged untrue statement or omission made in any preliminary prospectus relating
to a Shelf Registration Statement, the indemnity agreement contained in this
subsection (a) shall not inure to the benefit of any Holder or Participating
Broker-Dealer from whom the person asserting any such losses, claims, damages or
liabilities purchased the Securities concerned, to the extent that a prospectus
relating to such Securities was required to be delivered by such Holder or
Participating Broker-Dealer under the Securities Act in connection with such
purchase and any such loss, claim, damage or liability of such Holder or
Participating Broker-Dealer results from the fact that there was not sent or
given to such person, at or prior to the written confirmation of the sale of
such Securities to such person, a copy of the final prospectus if the Company
had previously furnished copies thereof to such Holder or Participating
Broker-Dealer; provided further, however, that this indemnity agreement will be
in addition to any liability which the Company may otherwise have to such
Indemnified Party. The Company shall also indemnify underwriters, their officers
and directors and each person who controls such underwriters within the meaning
of the Securities Act or the Exchange Act to the same extent as provided above
with respect to the indemnification of the Holders of the Securities if
requested by such Holders.

         (b) Each Holder of the Securities, severally and not jointly, will
indemnify and hold harmless the Company and each person, if any, who controls
the Company within the meaning of the Securities Act or the Exchange Act from
and against any losses, claims, damages or liabilities or any actions in respect
thereof, to which the Company or any such controlling person may become subject
under the Securities Act, the Exchange Act or otherwise, insofar as such losses,
claims, damages, liabilities or actions arise out of or are based upon any
untrue statement or alleged untrue statement of a material fact contained in a
Registration Statement or prospectus or in any amendment or supplement thereto
or in any preliminary prospectus relating to a Shelf Registration, or arise out
of or are based upon the omission or alleged omission to state therein a
material fact necessary to make the statements therein not misleading, but in
each case only to the extent that the untrue statement or omission or alleged
untrue statement or omission was made in reliance upon and in conformity with
written information pertaining to such Holder and furnished to the Company by or
on behalf of such Holder specifically for inclusion therein; and, subject to the

                                       11

<PAGE>

limitation set forth immediately preceding this clause, shall reimburse, as
incurred, the Company for any legal or other expenses reasonably incurred by the
Company or any such controlling person in connection with investigating or
defending any loss, claim, damage, liability or action in respect thereof. This
indemnity agreement will be in addition to any liability which such Holder may
otherwise have to the Company or any of its controlling persons.

         (c) Promptly after receipt by an indemnified party under this Section 5
of notice of the commencement of any action or proceeding (including a
governmental investigation), such indemnified party will, if a claim in respect
thereof is to be made against the indemnifying party under this Section 5,
notify the indemnifying party of the commencement thereof; but the omission so
to notify the indemnifying party will not, in any event, relieve the
indemnifying party from any obligations to any indemnified party other than the
indemnification obligation provided in paragraph (a) or (b) above. In case any
such action is brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate therein and, to the extent that it may wish, jointly
with any other indemnifying party similarly notified, to assume the defense
thereof, with counsel reasonably satisfactory to such indemnified party (who
shall not, except with the consent of the indemnified party, be counsel to the
indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof the
indemnifying party will not be liable to such indemnified party under this
Section 5 for any legal or other expenses, other than reasonable costs of
investigation, subsequently incurred by such indemnified party in connection
with the defense thereof. In any such proceeding, any indemnified party shall
have the right to retain its own counsel, but the fees and expenses of such
counsel shall be at the expense of such indemnified party unless: (i) the
indemnifying party and the indemnified party shall have mutually agreed to the
contrary; (ii) the indemnifying party has failed within a reasonable time to
retain counsel reasonably satisfactory to the indemnified party; (iii) the
indemnified party shall have 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 party; or (iv) the named parties in any such
proceeding (including any impleaded parties) include both the indemnifying party
and the indemnified party and representation of both parties by the same counsel
would be inappropriate due to actual or potential differing interests between
them; provided, however, that, notwithstanding anything to the contrary in this
Section 5, the indemnifying party shall not, in connection with any one such
action or proceeding or separate but substantially similar actions or
proceedings arising out of the same general allegations, be liable for the fees
and expenses of more than one separate firm of attorneys at any time for all
indemnified parties, except to the extent that local counsel, in addition to its
regular counsel, is required in order to effectively defend against such action
or proceeding. It is understood and agreed that all fees and expenses shall be
reimbursed to the indemnified party by the indemnifying party as they are
incurred. No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement of any pending or threatened action in
respect of which any indemnified party is or could have been a party and
indemnity could have been sought hereunder by such indemnified party unless such
settlement includes an unconditional release of such indemnified party from all
liability on any claims that are the subject matter of such action, and does not
include a statement as to or an admission of fault, culpability or a failure to
act by or on behalf of any indemnified party.

         (d) If the indemnification provided for in this Section 5 is
unavailable or insufficient to hold harmless an indemnified party under
subsections (a) or (b) above, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to in
subsection (a) or (b) above (i) in such proportion as is appropriate to reflect
the relative benefits received by the indemnifying party or parties from the
offering of the Initial Securities and the Exchange Securities on the one hand
and the indemnified party on the other from receiving Initial Securities or
Exchange Securities registered under the Securities Act, or (ii) if the
allocation provided by the foregoing 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) above but also the relative fault of the
indemnifying party or parties on the one hand and the indemnified party on the
other in connection with the statements or omissions that resulted in such
losses, claims, damages or liabilities (or

                                       12

<PAGE>

actions in respect thereof) as well as any other relevant equitable
considerations. The relative fault of the parties shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company on the one hand or such Holder or
such other indemnified party, as the case may be, on the other, and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The amount paid by an indemnified party as a
result of the losses, claims, damages or liabilities referred to in the first
sentence of this subsection (d) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any action or claim which is the subject of this
subsection (d). Notwithstanding any other provision of this Section 5(d), the
Holders of the Securities shall not be required to contribute any amount in
excess of the amount by which the net proceeds received by such Holders from the
sale of the Securities pursuant to a Registration Statement exceeds the amount
of damages which such Holders have otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The Holders'
obligations to contribute pursuant to this Section 5 are several in proportion
to their respective purchase obligations hereunder and not joint. For purposes
of this paragraph (d), each person, if any, who controls such indemnified party
within the meaning of the Securities Act or the Exchange Act shall have the same
rights to contribution as such indemnified party and each person, if any, who
controls the Company within the meaning of the Securities Act or the Exchange
Act shall have the same rights to contribution as the Company.

         (e) The agreements contained in this Section 5 shall survive the sale
of the Securities pursuant to a Registration Statement and shall remain in full
force and effect, regardless of any termination or cancellation of this
Agreement or any investigation made by or on behalf of any indemnified party.

         6.  Liquidated Damages Under Certain Circumstances. (a) Additional
interest (the "Liquidated Damages") with respect to the Securities shall be
assessed as follows if any of the following events occur (each such event in
clauses (i) through (v) below being herein called a "Registration Default"):

         (i)      any Exchange Offer Registration Statement required by this
                  Agreement is not filed with the Commission on or prior to the
                  applicable Filing Deadline;

         (ii)     any Exchange Offer Registration Statement required by this
                  Agreement is not declared effective by the Commission on or
                  prior to the applicable Effectiveness Deadline;

         (iii)    the Registered Exchange Offer has not been consummated on or
                  prior to the Consummation Deadline;

         (iv)     if any Shelf Registration Statement is required by this
                  Agreement and such Shelf Registration Statement is not
                  declared effective on or prior to the Effectiveness Deadline
                  under Section 2(a) hereof; or

         (iv)     any Exchange Offer Registration Statement or the Shelf
                  Registration Statement, as the case may be, required by this
                  Agreement has been declared effective by the Commission but:
                  (A) such Registration Statement thereafter ceases to be
                  effective; or (B) such Registration Statement or the related
                  prospectus ceases to be usable in connection with resales of
                  Transfer Restricted Securities during the periods specified
                  herein because either: (1) any event occurs as a result of
                  which the related prospectus forming part of such Registration
                  Statement would include any untrue statement of a material
                  fact or omit to state any material fact necessary to make the
                  statements therein in the light of the circumstances under
                  which they were made not misleading; or (2) it shall be
                  necessary to

                                       13

<PAGE>

               amend such Registration Statement or supplement the related
               prospectus, to comply with the Securities Act or the Exchange Act
               or the respective rules thereunder.

Each of the foregoing will constitute a Registration Default whatever the reason
for any such event and whether it is voluntary or involuntary or is beyond the
control of the Company or pursuant to operation of law or as a result of any
action or inaction by the Commission.

         Liquidated Damages interest shall accrue on the Securities over and
above the interest set forth in the title of the Securities from and including
the date on which any such Registration Default shall occur to but excluding the
date on which all such Registration Defaults have been cured, at a rate of 0.50%
per annum (the "Additional Interest Rate") for the first 90-day period
immediately following the occurrence of such Registration Default. The
Additional Interest Rate shall increase by an additional 0.50% per annum with
respect to each subsequent 90-day period until all Registration Defaults have
been cured, up to a maximum Additional Interest Rate of 2.0% per annum.

         (b) A Registration Default referred to in Section 6(a)(iv) hereof shall
be deemed not to have occurred and be continuing in relation to a Shelf
Registration Statement or the related prospectus if: (i) such Registration
Default has occurred solely as a result of (x) the filing of a post-effective
amendment to such Shelf Registration Statement to incorporate annual audited
financial information with respect to the Company where such post-effective
amendment is not yet effective and needs to be declared effective to permit
Holders to use the related prospectus or (y) other material events, with respect
to the Company that would need to be described in such Shelf Registration
Statement or the related prospectus; and (ii) in the case of clause (y), the
Company is proceeding promptly and in good faith to amend or supplement such
Shelf Registration Statement and related prospectus to describe such events;
provided, however, that in any case if such Registration Default occurs for a
continuous period in excess of 30 days, Additional Interest shall be payable in
accordance with the above paragraph from the day such Registration Default
occurs until such Registration Default is cured.

         (d) "Transfer Restricted Securities" means each Security until: (i) the
date on which such Security has been exchanged by a person other than a
broker-dealer for a freely transferable Exchange Security in the Registered
Exchange Offer; (ii) following the exchange by a broker-dealer in the Registered
Exchange Offer of an Initial Security for an Exchange Note, the date on which
such Exchange Note is sold to a purchaser who receives from such broker-dealer
on or prior to the date of such sale a copy of the prospectus contained in the
Exchange Offer Registration Statement; (iii) the date on which such Security has
been effectively registered under the Securities Act and disposed of in
accordance with the Shelf Registration Statement; or (iv) the date on which such
Security is distributed to the public pursuant to Rule 144 under the Securities
Act or is saleable pursuant to Rule 144(k) under the Securities Act.

         7.  Rules 144 and 144A. The Company shall use its best efforts to file
the reports required to be filed by it under the Securities Act and the Exchange
Act in a timely manner and, if at any time the Company is not required to file
such reports, it will, upon the request of any Holder of Securities, make
publicly available other information so long as necessary to permit sales of
their securities pursuant to Rules 144 and 144A. The Company covenants that it
will take such further action as any Holder of Securities may reasonably
request, all to the extent required from time to time to enable such Holder to
sell Securities without registration under the Securities Act within the
limitation of the exemptions provided by Rules 144 and 144A (including the
requirements of Rule 144A(d)(4)). The Company will provide a copy of this
Agreement to prospective purchasers of Initial Securities identified to the
Company by the Initial Purchasers upon request. Upon the request of any Holder
of Initial Securities, the Company shall deliver to such Holder a written
statement as to whether it has complied with such requirements. Notwithstanding
the foregoing, nothing in this Section 7 shall be deemed to require the Company
to register any of its securities pursuant to the Exchange Act.

                                       14

<PAGE>

         8.  Underwritten Registrations. If any of the Transfer Restricted
Securities covered by any Shelf Registration are to be sold in an underwritten
offering, the investment banker or investment bankers and manager or managers
that will administer the offering ("Managing Underwriters") will be selected by
the Holders of a majority in aggregate principal amount of such Transfer
Restricted Securities to be included in such offering.

         No person may participate in any underwritten registration hereunder
unless such person: (i) agrees to sell such person's Transfer Restricted
Securities on the basis reasonably provided in any underwriting arrangements
approved by the persons entitled hereunder to approve such arrangements; and
(ii) completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents reasonably required under the terms
of such underwriting arrangements.

         9.  Miscellaneous.

         (a) Remedies. The Company acknowledges and agrees that any failure by
the Company to comply with its obligations under Section 1 and 2 hereof may
result in material irreparable injury to the Initial Purchasers or the Holders
for which there is no adequate remedy at law, that it will not be possible to
measure damages for such injuries precisely and that, in the event of any such
failure, the Initial Purchasers or any Holder may obtain such relief as may be
required to specifically enforce the Company's obligations under Sections 1 and
2 hereof. The Company further agrees to waive the defense in any action for
specific performance that a remedy at law would be adequate.

         (b) No Inconsistent Agreements. The Company will not on or after the
date of this Agreement enter into any agreement with respect to its securities
that is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. The rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to the holders of the Company's securities under any
agreement in effect on the date hereof.

         (c) Amendments and Waivers. The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, except by the Company and the written
consent of the Holders of a majority in principal amount of the Securities
affected by such amendment, modification, supplement, waiver or consents.

         (d) Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, first-class mail,
facsimile transmission, or air courier which guarantees overnight delivery:

                  (1) if to a Holder of the Securities, at the most current
address given by such Holder to the Company.

                  (2)  if to the Initial Purchasers;

                           Credit Suisse First Boston Corporation
                           Eleven Madison Avenue
                           New York, NY 10010-3629
                           Fax No.: (212) 325-8278
                           Attention: Transactions Advisory Group

         with a copy to:

                           Skadden, Arps, Slate, Meagher & Flom LLP
                           Four Times Square

                                       15

<PAGE>

                           New York, NY 10036-6522
                           Fax No.: (212) 735-2000
                           Attention: Mark C. Smith

                   (3)     if to the Company, at its address as follows:

                           Earle M. Jorgensen Company
                           3050 East Birch Street
                           Brea, CA 92821
                           Fax No.: (714) 577-3754
                           Attention:

         with a copy to:

                           Katten Muchin Zavis Rosenman
                           2029 Century Park East
                           Suite 2600
                           Los Angeles, CA 90067
                           Fax No.: (310) 712-8225
                           Attention: Mark A. Conley

         All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; three business
days after being deposited in the mail, postage prepaid, if mailed; when receipt
is acknowledged by recipient's facsimile machine operator, if sent by facsimile
transmission; and on the day delivered, if sent by overnight air courier
guaranteeing next day delivery.

         (e) Third Party Beneficiaries. The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company, on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right to
enforce such agreements directly to the extent they may deem such enforcement
necessary or advisable to protect their rights or the rights of Holders
hereunder.

         (f) Successors and Assigns. This Agreement shall be binding upon the
Company and its successors and assigns.

         (g) Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

         (h) Headings. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

         (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAWS.

         (j) Severability. If any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal
or unenforceable, the validity, legality and enforceability of any such
provision in every other respect and of the remaining provisions contained
herein shall not be affected or impaired thereby.

         (k) Securities Held by the Company. Whenever the consent or approval of
Holders of a specified percentage of principal amount of Securities is required
hereunder, Securities held by the Company or its

                                       16

<PAGE>

affiliates (other than subsequent Holders of Securities if such subsequent
Holders are deemed to be affiliates solely by reason of their holdings of such
Securities) shall not be counted in determining whether such consent or approval
was given by the Holders of such required percentage.

         (l) Agent for Service; Submission to Jurisdiction; Waiver of
Immunities. By the execution and delivery of this Agreement, the Company: (i)
acknowledges that it has, by separate written instrument, irrevocably designated
and appointed CT Corp. (and any successor entity), as its authorized agent upon
which process may be served in any suit or proceeding arising out of or relating
to this Agreement that may be instituted in any federal or state court in the
State of New York or brought under federal or state securities laws, and
acknowledges that CT Corp. has accepted such designation; (ii) submits to the
nonexclusive jurisdiction of any such court in any such suit or proceeding; and
(iii) agrees that service of process upon CT Corp. and written notice of said
service to the Company shall be deemed in every respect effective service of
process upon it in any such suit or proceeding. The Company further agrees to
take any and all action, including the execution and filing of any and all such
documents and instruments, as may be necessary to continue such designation and
appointment of CT Corp. in full force and effect so long as any of the
Securities shall be outstanding. To the extent that the Company may acquire any
immunity from jurisdiction of any court or from any legal process (whether
through service of notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) with respect to itself or its property, it
hereby irrevocably waives such immunity in respect of this Agreement, to the
fullest extent permitted by law.

         If the foregoing is in accordance with your understanding of our
agreement, please sign and return to the Company a counterpart hereof, whereupon
this instrument, along with all counterparts, will become a binding agreement
among the several Initial Purchasers and the Company in accordance with its
terms.

                                       17

<PAGE>

                                            Very truly yours,

                                            EARLE M. JORGENSEN COMPANY

                                                  by
                                                     __________________________
                                                     Name:
                                                     Title:

The foregoing Registration
Rights Agreement is hereby confirmed
and accepted as of the date first
above written.

Credit Suisse First Boston Corporation
Deutsche Bank Securities Inc.
J.P. Morgan Securities Inc.

   Acting on behalf of themselves
   and as the Representatives of
   the several Purchasers

By: Credit Suisse First Boston Corporation

by
    ___________________________________________
    Name:
    Title:

                                        1

<PAGE>

                                                                         ANNEX A

         Each broker-dealer that receives Exchange Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. The Letter
of Transmittal states that by so acknowledging and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act. This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Securities received in exchange for Initial Securities
where such Initial Securities were acquired by such broker-dealer as a result of
market-making activities or other trading activities. The Company has agreed
that, for a period of 180 days after the Expiration Date (as defined herein), it
will make this Prospectus available to any broker-dealer for use in connection
with any such resale. See "Plan of Distribution."

                                        2

<PAGE>

                                                                         ANNEX B

         Each broker-dealer that receives Exchange Securities for its own
account in exchange for Initial Securities, where such Initial Securities were
acquired by such broker-dealer as a result of market-making activities or other
trading activities, must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Securities. See "Plan of
Distribution."

                                        3

<PAGE>

                                                                         ANNEX C

                              PLAN OF DISTRIBUTION

         Each broker-dealer that receives Exchange Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. This
Prospectus, as it may be amended or supplemented from time to time, may be used
by a broker-dealer in connection with resales of Exchange Securities received in
exchange for Initial Securities where such Initial Securities were acquired as a
result of market-making activities or other trading activities. The Company has
agreed that, for a period of 180 days after the Expiration Date, it will make
this prospectus, as amended or supplemented, available to any broker-dealer for
use in connection with any such resale. In addition, until          , 2002, all
dealers effecting transactions in the Exchange Securities may be required to
deliver a prospectus.

         The Company will not receive any proceeds from any sale of Exchange
Securities by broker-dealers. Exchange Securities received by broker-dealers for
their own account pursuant to the Exchange Offer may be sold from time to time
in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the Exchange Securities or a
combination of such methods of resale, at market prices prevailing at the time
of resale, at prices related to such prevailing market prices or negotiated
prices. Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such broker-dealer or the purchasers of any such Exchange
Securities. Any broker-dealer that resells Exchange Securities that were
received by it for its own account pursuant to the Exchange Offer and any broker
or dealer that participates in a distribution of such Exchange Securities may be
deemed to be an "underwriter" within the meaning of the Securities Act and any
profit on any such resale of Exchange Securities and any commission or
concessions received by any such persons may be deemed to be underwriting
compensation under the Securities Act. The Letter of Transmittal states that, by
acknowledging that it will deliver and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act.

         For a period of 180 days after the Expiration Date the Company will
promptly send additional copies of this Prospectus and any amendment or
supplement to this Prospectus to any broker-dealer that requests such documents
in the Letter of Transmittal. The Company has agreed to pay all expenses
incident to the Exchange Offer (including the expenses of one counsel for the
Holders of the Securities) other than commissions or concessions of any brokers
or dealers and will indemnify the Holders of the Securities (including any
broker-dealers) against certain liabilities, including liabilities under the
Securities Act.

                                        4

<PAGE>

                                                                         ANNEX D

[_] CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL
COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

           Name:   ___________________________________
           Address:___________________________________

If the undersigned is not a broker-dealer, the undersigned represents that it is
not engaged in, and does not intend to engage in, a distribution of Exchange
Securities. If the undersigned is a broker-dealer that will receive Exchange
Securities for its own account in exchange for Initial Securities that were
acquired as a result of market-making activities or other trading activities, it
acknowledges that it will deliver a prospectus in connection with any resale of
such Exchange Securities; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.

                                        5

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