Document:

exv10w2

Exhibit 10.2

COMMERCIAL METALS COMPANY

LONG-TERM EQUITY AWARD AGREEMENT

_______________________

(the “Participant”)

has been granted a Restricted Stock Unit Award, which is described in this Award Agreement (the
“Agreement”) in accordance with Article 6 of the Commercial Metals Company (the “Company”) 2006
Long-Term Equity Incentive Plan (the “Plan”). The “Date of Grant” is January 18, 2011.

     This Agreement is subject to the terms of the Plan, and the terms of the Plan shall control in
the event any provision of this Agreement is inconsistent with the provisions of the Plan. The
capitalized terms used but not defined in this Agreement that are defined in the Plan shall have
the meanings assigned to them in the Plan. The RSU Award (as defined in Section 1 below)
may also be referred to herein as the “Award.”

     1. Restricted Stock Unit Award. The number of shares of Common Stock that may be
delivered is __________ (the “RSU Award”).

          a. Vesting; Timing of Delivery of Shares.

     (i) Subject to special vesting and forfeiture rules in this Agreement, provided
the Participant is employed by or providing services to the Company or a Subsidiary
on the applicable vesting date, the RSU Award shall vest in the form of shares of
Company Common Stock and become payable as follows:

     (A) First anniversary of the Date of Grant: One-Third of the total RSU
Award.

     (B) Second anniversary of the Date of Grant: One-Third of the total RSU
Award.

     (C) Third anniversary of the Date of Grant: One-Third of the total RSU
Award.

Each of the periods described in Section 1.a.(i)(A), (B), and (C) above is a
“Vesting Year.”

     (ii) Upon (A) the Participant’s death; (B) the Participant’s Termination of
Service as a result of Total and Permanent Disability; or (C) the Participant’s
Qualifying Retirement, a pro rata portion of the unvested RSU Award shall
automatically become vested and payable equal to the portion of the RSU Award that
would have become vested pursuant to Section 1.a.(i) at the end of the
then-current Vesting Year multiplied by a fraction, the numerator of which is the
number of days during the then-current Vesting Year prior to the date of such event,
and the denominator of which is 365.

     (iii) Notwithstanding Section 1.a.(i), 100% of the as-yet unvested RSU
Award shall automatically become fully vested and payable upon the occurrence of a
Change in Control.

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     (iv) In the event of vesting of an RSU Award pursuant to reaching one of the
following: a Vesting Year, the Participant’s death, or the occurrence of a Change in
Control, the Company shall deliver to the Participant (or the Participant’s personal
representative) the number of shares of Common Stock equal to the number of units of
the RSU Award which have become vested either ratably, or due to death or a Change
in Control upon the earliest of: (A) the date of a Vesting Year has been reached, or
(B) as soon as practical after (i) the Participant’s death or (ii) when the Change
in Control occurs, but in no event later than 60 days following such date.

     (v) Subject to Section 15.b., in the event of vesting of the RSU Award
pursuant to Section 1.a.(ii)(B) (Termination of Service due to Disability)
or Section 1.a.(ii)(C) (Qualifying Retirement), the Company shall deliver to
the Participant (or the Participant’s personal representative) a number of shares of
Common Stock equal to the appropriate pro rata vested RSU Award credited to the
Participant, upon, or as soon as practical following, but in no event later than 60
days after the occurrence of either accelerating event.

     b. Forfeiture of RSU Award. Any portion of the RSU Award that does not become
vested and payable in shares of Common Stock in accordance with this Section 1 shall
be forfeited on the date of the Participant’s Termination of Service.

     2. Definitions. For purposes of this Agreement, the following term shall have the
meaning set forth below:

     “Qualifying Retirement” means that the Committee, in its sole discretion,
determines that the sole reason for the Participant’s Termination of Service is
retirement. The following thresholds shall act as triggers for an analysis by the
Committee of whether a retirement event is a Qualified Retirement: (x) a Retirement
(as defined in the Plan) or (y) a qualified retirement under the terms of this
Agreement, as follows: (A) Termination of Service as a result of retirement on or
after attaining age sixty-two (62); (B) Termination of Service as a result of
retirement following the attainment of age fifty-five (55) and ten (10) years of
employment with the Company or any Subsidiary; or (C) Termination of Service as a
result of retirement following the attainment of age fifty (50) and fifteen (15)
years of employment with the Company or any Subsidiary, or for other reasons as
determined by the Compensation Committee.

     3. Restrictions on Award and Rights of a Stockholder. The Participant will not be
treated as a stockholder with respect to any shares of Common Stock covered by this Agreement until
the shares are entered by book entry registration in the Company’s direct registration services or
issuance of a certificate or certificates to the Participant for the shares. Article 11 of the
Plan shall cover any adjustments for dividends or other rights for which the record date is prior
to the issuance of such certificate or certificates. Subject to the provisions of the Plan, until
the date shares of Common Stock are delivered to the Participant under the Award (the “Restriction
Period”), the Participant shall not be permitted to sell, transfer, pledge or assign any of the
Award or any shares of Common Stock that may be delivered under the Award. All of the rights of
the Participant in the Award and the Common Stock issued upon vesting of the Award are subject to
Section 15 of this Agreement.

     4. Book Entry or Certificate Issuance of Shares and Legend. All shares of Common
Stock delivered shall be represented by, at the option of the Company, either book entry
registration in the Company’s direct registration services or by a certificate. If the Common
Stock was not issued in a

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transaction registered under the federal and state securities laws, all shares of Common Stock
delivered under the Award that are issued in certificate form shall bear a restrictive legend and
shall be held indefinitely, unless they are subsequently registered under the federal and state
securities laws or the Participant obtains an opinion of counsel, satisfactory to the Company, that
registration is not required. All shares of Common Stock delivered that are issued in book entry
direct registration services form shall be subject to the same restrictions described in a
restrictive legend.

     5. Specific Performance. The parties acknowledge that remedies at law will be
inadequate remedies for breach of this Agreement and consequently agree that this Agreement shall
be enforceable by specific performance. The remedy of specific performance shall be cumulative of
all of the rights and remedies at law or in equity of the parties under this Agreement.

     6. Investment Representation. Unless the Common Stock is issued to him in a
transaction registered under federal and state securities laws, the Participant represents and
warrants that all Common Stock which may be acquired hereunder will be acquired by the Participant
for investment purposes for his own account and not with any intent for resale or distribution in
violation of federal or state securities laws.

     7. Participant’s Acknowledgments. The Participant acknowledges that a copy of the
Plan has been made available for his review by the Company, and represents that he is familiar with
the terms of the Plan, and accepts this Award subject to all the terms of the Plan. The Participant
agrees to accept as binding, conclusive, and final all decisions or interpretations of the
Committee or the Board, as appropriate, upon any questions arising under the Plan or this
Agreement.

     8. Law Governing; Venue. This Agreement shall be governed by, construed, and enforced
in accordance with the laws of the State of Texas (excluding any conflict of laws rule or principle
of Texas law that might refer the governance, construction, or interpretation of this agreement to
the laws of another state). Any action or proceeding seeking to enforce any provision of, or based
on any right arising out of, this Agreement shall be brought in the courts of the State of Texas,
County of Dallas, or, if it has or can acquire jurisdiction, in the United States District Court
for the Northern District of Texas, and each of the parties irrevocably submits to the exclusive
jurisdiction of each such court in any such proceeding, waives any objection it may now or
hereafter have to venue or convenience of forum, agrees that all claims in respect of the
proceedings shall be heard and determined only in any such court and agrees not to bring any
proceeding arising out of or relating to this Agreement in any other court.

     9. Legal Construction. In the event that any term of this Agreement is held
by a court to be invalid in any respect, the invalid term shall not affect any other term that is
contained in this Agreement and this Agreement shall be construed in all respects as if the invalid
term had never been contained herein.

     10. Entire Agreement. This Agreement together with the Plan supersede any and all
other prior understandings and agreements, either oral or in writing, between the parties with
respect to the subject matter of this Agreement and constitute the sole agreements between the
parties with respect to the subject matter.

     11. Parties Bound. The terms that are contained in this Agreement shall apply to, be
binding upon, and inure to the benefit of the parties and their respective heirs, executors,
administrators, legal representatives, and permitted successors and assigns, subject to the
limitation on assignment set forth in this Agreement.

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     12. Modification. No change or modification of this Agreement shall be valid unless
the change or modification is in writing and signed by the parties. However, the Company may
change or modify the terms of this Agreement without the Participant’s consent or signature if the
Company determines that such change or modification is necessary to comply with or be exempt from
the requirements of Section 409A of the Code. In any event, the Company may amend the Plan or
revoke the Award to the extent permitted by the Plan.

     13. Tax Requirements. The Participant should consult immediately with his own tax
advisor regarding the tax consequences of this Agreement. The Company (or a Subsidiary that is the
Participant’s employer) (for purposes of this Section 13 “Company” includes any applicable
Subsidiary), shall have the right to deduct from all amounts paid in stock, cash or any other form,
any taxes required by law to be withheld in connection with this Award. The Company may also
require the Participant receiving shares of Common Stock to pay the Company the amount of any taxes
that the Company is required to withhold in connection with this Award. Such payments shall be
made when requested by Company and may be required prior to the delivery of any certificate
representing shares of Common Stock. Such payment may be made at the election of the Participant
(i) by the delivery of cash to the Company in an amount that equals (or exceeds, to the extent
necessary to avoid the issuance of fractional shares under (iii) below) the required tax
withholding obligations of the Company; (ii) if the Company, in its sole discretion, so consents in
writing, the actual delivery by the Participant to the Company of shares of Common Stock that the
Participant has not acquired from the Company within six (6) months, with an aggregate Fair Market
Value that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the
required tax withholding payment; (iii) if the Company, in its sole discretion, so consents in
writing, the Company’s withholding of a number of shares to be delivered upon the vesting of this
Award, with an aggregate Fair Market Value that equals (but does not exceed) the required tax
withholding payment (the “Share Retention Method”); or (iv) any combination of (i), (ii), or (iii).
However, if the Participant is subject to Section 16 of the Securities Exchange Act of 1934, his
withholding obligation under this Section 13 shall be satisfied by the Share Retention
Method, and neither the Company nor the Committee shall have any discretion to permit the
satisfaction of such withholding obligation by any other means.

     14. Section 409A; Delay of Payment.

     a. It is intended that the payments and benefits provided under this Agreement will be
exempt from the application of, or comply with, the requirements of Section 409A of the
Code. The Agreement shall be interpreted, construed, administered, and governed in a manner
that effects such intent, and the Company shall not take any action that would be
inconsistent with such intent. Without limiting the foregoing, the payments and benefits
provided under this Agreement may not be deferred, accelerated, extended, paid out or
modified in a manner that would result in the imposition of an additional tax upon the
Participant under Section 409A of the Code.

     b. To the extent (i) any payment to which the Participant becomes entitled under this
Agreement, upon the Participant’s Termination of Service constitutes deferred compensation
subject to Section 409A of the Code, (ii) the Participant is deemed at the time of such
Termination of Service to be a “specified employee” under Section 409A of the Code, (iii)
the Company is publicly traded (as defined in Section 409A of the Code), and (iv) such
payment is subject to the delay provided for herein, then such payment will not be made or
commence until the earlier of (x) the expiration of the six (6) month period measured from
the date of the Participant’s Termination of Service; and (y) the date of the Participant’s
death following such Termination of Service.

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     15. Forfeiture or Recovery. Notwithstanding anything to the contrary in the Plan, if
the Committee determines, in its sole discretion, that the Participant has engaged in fraud or
misconduct that relates to, in whole or in part, the need for a required restatement of the
Company’s financial statements filed with the Securities and Exchange Commission, the Committee
will review all incentive compensation awarded to or earned by the Participant, including, without
limitation, any Award under the Plan, with respect to fiscal periods materially affected by the
restatement and may cause to be forfeited any vested or unvested Award and may recover from the
Participant all incentive compensation to the extent that the Committee deems appropriate after
taking into account the relevant facts and circumstances. Any recoupment hereunder may be in
addition to any other remedies that may be available to the Company under any other agreement or
applicable law, including disciplinary action up to and including termination of employment.

     IN WITNESS WHEREOF, this Agreement has been executed by a duly authorized officer of the
Company, and the Participant, to evidence his consent and approval of all the terms of this
Agreement, has duly executed this Agreement, as of the date specified in Section 1 of this
Agreement.

	 	 	 	 	 	 	 

	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	COMMERCIAL METALS COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Signature	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 

	 	 	 	 

	 	 

5exv10w3

Exhibit 10.3

EXECUTION VERSION

RECEIVABLES SALE AGREEMENT

Dated as of April 5, 2011

by and between

COMMERCIAL METALS COMPANY

CMC COMETALS PROCESSING, INC.

HOWELL METAL COMPANY

STRUCTURAL METALS, INC.

CMC STEEL FABRICATORS, INC.

SMI STEEL INC.

SMI — OWEN STEEL COMPANY, INC.

AHT, INC.,

as the Originators,

and

CMC RECEIVABLES, INC.,

as the Buyer

Receivables Sale Agreement

CHI60, 775,768v12

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	Article I Amounts and Terms
	 	 	2	 
	 
	 	 	 	 
	Section 1.1. Purchase and Contribution of Receivables
	 	 	2	 
	Section 1.2. Payment for the Purchase
	 	 	3	 
	Section 1.3. Purchase Price Credit Adjustments
	 	 	4	 
	Section 1.4. Payments and Computations, Etc.
	 	 	5	 
	Section 1.5. Transfer of Records
	 	 	5	 
	Section 1.6. Characterization
	 	 	5	 
	 
	 	 	 	 
	Article II Representations and Warranties
	 	 	6	 
	 
	 	 	 	 
	Section 2.1. Representations and Warranties of Each of the Originators
	 	 	6	 
	 
	 	 	 	 
	Article III Conditions of Purchase
	 	 	11	 
	 
	 	 	 	 
	Section 3.1. Conditions Precedent to Closing
	 	 	11	 
	Section 3.2. Conditions Precedent to Subsequent Payments
	 	 	11	 
	 
	 	 	 	 
	Article IV Covenants
	 	 	12	 
	 
	 	 	 	 
	Section 4.1. Affirmative Covenants of Each of the Originators
	 	 	12	 
	Section 4.2. Negative Covenants of the Each of the Originators
	 	 	15	 
	 
	 	 	 	 
	Article V Termination Events
	 	 	17	 
	 
	 	 	 	 
	Section 5.1. Termination Events
	 	 	17	 
	Section 5.2. Remedies
	 	 	18	 
	 
	 	 	 	 
	Article VI Indemnification
	 	 	19	 
	 
	 	 	 	 
	Section 6.1. Indemnities by the Each of the Originators
	 	 	19	 
	Section 6.2. Other Costs and Expenses
	 	 	21	 
	 
	 	 	 	 
	Article VII Miscellaneous
	 	 	21	 
	 
	 	 	 	 
	Section 7.1. Waivers and Amendments
	 	 	21	 
	Section 7.2. Notices
	 	 	22	 
	Section 7.3. Protection of Ownership Interests of the Buyer
	 	 	22	 
	Section 7.4. Confidentiality
	 	 	23	 
	Section 7.5. Bankruptcy Petition
	 	 	24	 
	Section 7.6. Amounts to be paid by Buyer
	 	 	24	 
	Section 7.7. Setoff
	 	 	24	 
	Section 7.8. CHOICE OF LAW
	 	 	25	 
	Section 7.9. CONSENT TO JURISDICTION
	 	 	25	 
	Section 7.10. WAIVER OF JURY TRIAL
	 	 	25	 
	Section 7.11. Integration; Binding Effect; Survival of Terms
	 	 	25	 
	Section 7.12. Counterparts; Severability; Section References
	 	 	26	 
	Section 7.13. PATRIOT Act
	 	 	26	 

Receivables Sale Agreement

 i 

 

 

Exhibits

	 	 	 

	Exhibit I

	 	Definitions
	 
	 	 
	Exhibit II

	 	Jurisdiction of Incorporation; Organizational Identification Number; Principal Places of
Business; Chief Executive Office; Locations of Records; Federal Employer Identification
Number; Other Names
	 
	 	 
	Exhibit III

	 	Lock-Boxes; Collection Accounts; Collection Banks
	 
	 	 
	Exhibit IV

	 	Form of Compliance Certificate
	 
	 	 
	Exhibit V

	 	Form of Subordinated Note
	 
	 	 
	Exhibit VI

	 	Form of Purchase Report
	 
	 	 
	Schedules
	 
	 	 
	Schedule A

	 	Documents to be Delivered to Buyer on or Prior to the Closing Date
	 
	 	 
	Schedule B

	 	Provisions to be included in any pledge

Receivables Sale Agreement

 ii 

 

 

RECEIVABLES SALE AGREEMENT

     THIS RECEIVABLES SALE AGREEMENT, dated as of April 5, 2011 (as amended, restated, supplemented
or otherwise modified from time to time, this “Agreement”), is by and among COMMERCIAL METALS
COMPANY, a Delaware corporation (“CMC”), CMC COMETALS PROCESSING, INC., a Texas corporation
(“Cometals Processing”), HOWELL METAL COMPANY, a Virginia corporation (“Howell”), STRUCTURAL
METALS, INC., a Texas corporation (“SMI”), CMC STEEL FABRICATORS, INC., a Texas corporation (“CMC
Steel”), SMI STEEL INC., an Alabama corporation (“SMI Steel”), SMI-OWEN STEEL COMPANY, INC., a
South Carolina corporation (“SMI Owen”) and AHT, INC., a Pennsylvania corporation (“AHT”, together
with CMC, Cometals Processing, Howell, SMI, CMC Steel, SMI Steel and SMI Owen, the “Originators”
and each of the Originators other than CMC, a “Subsidiary Originator”), and CMC RECEIVABLES, INC.,
a Delaware corporation (the “Buyer”). Unless defined elsewhere herein, capitalized terms used in
this Agreement shall have the meanings assigned to such terms in Exhibit I attached hereto
(or, if not defined in Exhibit I attached hereto, the meanings assigned to such terms in
Exhibit I to the Purchase Agreement).

PRELIMINARY STATEMENTS

     The Originators now own, and from time to time hereafter will own, certain
Receivables. Upon the terms and conditions hereinafter set forth, (a) CMC wishes
to contribute to the Buyer’s capital all of CMC’s right, title and interest in and
to all of CMC’s existing and future Receivables, together with the Related Security
and Collections with respect thereto and all proceeds of the foregoing, and the
Buyer wishes to accept such capital contributions, and (b) each Subsidiary
Originator wishes to sell and assign to the Buyer, and the Buyer wishes to purchase
from such Subsidiary Originator, all of each such Subsidiary Originator’s right,
title and interest in and to all existing and future Receivables, together with the
Related Security and Collections with respect thereto and all proceeds of the
foregoing.

     Each Originator and the Buyer intend the transactions contemplated hereby to
be true sales (and, solely in the case of CMC, true contributions) of the
Receivables Assets from the Originators to the Buyer, providing the Buyer with the
full benefits of ownership of the Receivables Assets, and none of the Originators
and the Buyer intend these transactions to be, or for any purpose to be
characterized as, loans from the Buyer to any Originator secured by the Receivables
Assets.

     Immediately following its acquisition of the Receivables Assets from the
Originators, the Buyer will sell the Receivables to certain purchasers pursuant to
that certain Receivables Purchase Agreement dated as of April 5, 2011 (as the same
may from time to time hereafter be amended, supplemented, restated or otherwise
modified, the “Purchase Agreement”) among the Buyer, the Servicer,

Receivables Sale Agreement

 

 

the Purchasers from time to time party thereto and Wells Fargo Bank, N.A., as
administrative agent for the Purchasers (together with its successors and permitted
assigns in such capacity, the “Administrative Agent”).

     NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

Article I

Amounts and Terms

Section 1.1. Purchase and Contribution of Receivables.

     (a) Effective on the Closing Date: (i) CMC hereby contributes, assigns, transfers, sets-over
and otherwise conveys to the Buyer’s capital, without recourse to CMC (except to the extent
expressly provided herein), and the Buyer hereby accepts, all of CMC’s right, title and interest in
and to all of CMC’s Receivables existing as of the close of business on the Initial Cutoff Date and
thereafter arising through and including the Termination Date (collectively, the “Contributed
Receivables”), together with all Related Security and Collections associated therewith
(collectively, the “Contributed Receivables Assets”); and (ii) in consideration for the Purchase
Price and upon the terms and subject to the conditions set forth herein, each of the Subsidiary
Originators hereby sells, assigns, transfers, sets-over and otherwise conveys to the Buyer, without
recourse (except to the extent expressly provided herein), and the Buyer hereby purchases from each
Subsidiary Originator, all of such Subsidiary Originators’ right, title and interest in and to all
Receivables existing as of the close of business on the Initial Cutoff Date and all Receivables
thereafter arising through and including the Termination Date (collectively, the “Purchased
Receivables”), together, in each case, with all Related Security relating thereto and all
Collections thereof (collectively, the “Purchased Receivables Assets”, together with the
Contributed Receivables Assets, the “Receivables Assets”). In accordance with the preceding
sentence, on the Closing Date the Buyer shall acquire all of the Originators’ right, title and
interest in and to the Contributed Receivables Assets and the Purchased Receivables Assets. The
Buyer shall be obligated to pay the Purchase Price for each Receivable purchased from a Subsidiary
Originator hereunder in accordance with Section 1.2.

     (b) On the Monthly Reporting Date the Originators shall (or shall require the Servicer to)
deliver to the Buyer a report in substantially the form of Exhibit VI hereto (each such
report, a “Purchase Report”) with respect to the Receivables sold and/or contributed by the
Originators to the Buyer during such Calculation Period.

     (c) It is the intention of the parties hereto that each transfer of Receivables hereunder
shall constitute a true sale and/or contribution, which sale and/or contribution, as the case may
be, is absolute and irrevocable and provides the Buyer with the full benefits of ownership of the
Receivables and the associated Related Security and Collections. Except for the Purchase Price
Credits owed pursuant to Section 1.3, each transfer of Receivables Assets hereunder is made
without recourse to any of the Originators; provided, however, that (i) each Originator shall be
liable to the Buyer for all representations, warranties, covenants and indemnities made by it

Receivables Sale Agreement

2

 

pursuant to the terms of the Transaction Documents to which it is a party, and (ii) such
transfer does not constitute and is not intended to result in an assumption by the Buyer or any
assignee thereof of any obligation of the Originators or any other Person arising in connection
with the Receivables Assets or any other obligations of the Originators. In view of the intention
of the parties hereto that each purchase and contribution shall constitute a true sale and/or true
contribution of Receivables and the associated Related Security and Collections, rather than a loan
secured thereby, each Originator agrees that it will, on or prior to the Closing Date and in
accordance with Section 4.1(e)(ii), mark its master data processing records relating to the
Receivables with a legend acceptable to the Buyer and to the Administrative Agent (as the Buyer’s
assignee), evidencing that the Buyer has acquired such Receivables as provided in this Agreement
and to note in its financial statements that its Receivables have been absolutely sold or
contributed to the Buyer. Upon the request of the Buyer or the Administrative Agent (as the
Buyer’s assignee), each Originator will execute (if required) and file or authorize the filing of
such financing statements, continuation statements, and amendments thereto or assignments thereof,
and such other instruments or notices, as may be necessary or appropriate to perfect and maintain
the perfection of the Buyer’s ownership interest in the Receivables Assets, or as the Buyer or the
Administrative Agent (as the Buyer’s assignee) may reasonably request.

Section 1.2. Payment for the Purchase.

     (a) On the Closing Date, immediately after the Buyer’s acceptance of the contribution of the
Contributed Receivables Assets from CMC, the Purchase Price for all other Receivables Assets in
existence as of the close of business on the Initial Cutoff Date shall be payable in full by the
Buyer to the applicable Subsidiary Originator by delivery of a Subordinated Note by Buyer to the
applicable Subsidiary Originator in an aggregate principal amount not to exceed the lesser of (i)
the Purchase Price therefor and (ii) the maximum loan (each such loan, a “Subordinated Loan”) that
could be borrowed by the Buyer from the applicable Subsidiary Originator without rendering the
Buyer’s Net Worth less than the Required Capital Amount.

     (b) The Purchase Price for each Receivable coming into existence after the Initial Cutoff Date
shall become owing in full by the Buyer to the applicable Subsidiary Originator or its designee on
the date each such Receivable comes into existence and shall be paid to the applicable Subsidiary
Originator on the next succeeding Monthly Settlement Date in the following manner:

     (i) by delivery of immediately available funds, to the extent of Available Cash; and/or

     (ii) by an increase in the amount then outstanding under the applicable Subordinated
Note, but subject to the limitations set forth in Section 1.2(a).

     (c) Subject to the limitations set forth in Section 1.2(a), each Subsidiary Originator
irrevocably agrees to advance each Subordinated Loan requested by the Buyer prior to the
Termination Date. Each Subordinated Loan shall be evidenced by, and shall be payable in accordance
with the terms and provisions of a Subordinated Note and shall be payable solely from Available
Cash. Each Subsidiary Originator is hereby authorized by the Buyer to endorse

Receivables Sale Agreement

3

 

on the schedule attached to its Subordinated Note an appropriate notation evidencing the date
and amount of each advance thereunder, as well as the date of each payment with respect thereto,
provided that the failure to make such notation shall not affect any obligation of the Buyer
thereunder.

Section 1.3. Purchase Price Credit Adjustments.

     If on any day:

     (a) the Outstanding Balance of a Receivable originated by any Originator is:

     (i) reduced as a result of any defective or rejected or returned goods or services, any
cash discount or any adjustment or otherwise by such Originator or any Affiliate thereof, or

     (ii) reduced or canceled as a result of a setoff in respect of any claim by any Person
(whether such claim arises out of the same or a related transaction or an unrelated
transaction), or

     (iii) reduced on account of the obligation of such Originator or any Affiliate thereof
to pay the related Obligor any rebate or refund, or

     (iv) less than the amount included in the calculations in any Purchase Report, or

     (b) any of the representations and warranties set forth in Section 2.1(h), Section
2.1(i), Section 2.1(j), Section 2.1(q), Section 2.1(r), Section
2.1(s) or Section 2.1(t) is not true when made or deemed made with respect to any
Receivable,

then, in such event, the Buyer shall be entitled to a credit (each, a “Purchase Price Credit”)
against the Purchase Price otherwise payable hereunder equal to (A) in the case of clauses
(a)(i)-(iv) above, the amount of such reduction or cancellation or the difference between the
actual Outstanding Balance and the amount included in calculating the Net Pool Balance, as
applicable; and (B) in the case of clause (b) above, in the amount of the Outstanding
Balance of such Receivable (calculated before giving effect to the applicable reduction or
cancellation). If such Purchase Price Credit exceeds the Original Balance of the Receivables
originated by the applicable Subsidiary Originator in any Calculation Period, then the applicable
Subsidiary Originator shall pay the remaining amount of such Purchase Price Credit in cash on the
next succeeding Monthly Settlement Date, provided that if the Facility Termination Date has not
occurred, any such Subsidiary Originator shall be allowed to deduct the remaining amount of such
Purchase Price Credit from any indebtedness owed to it under its Subordinated Note; provided,
further, that no Purchase Price Credit shall include any amount to the extent the same represents
losses in respect of Receivables that are uncollectible on account of the insolvency, bankruptcy or
lack of creditworthiness of the related Obligor. Purchase Price Credits owing from CMC shall be
reflected solely as reductions of CMC’s equity in Buyer.

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Section 1.4. Payments and Computations, Etc.

     All amounts to be paid or deposited by the Buyer hereunder shall be paid or deposited in
accordance with the terms hereof on the day when due in immediately available funds to the account
of the applicable Originator designated from time to time by each Originator or as otherwise
directed by the applicable Originator. In the event that any payment owed by any Person hereunder
becomes due on a day that is not a Business Day, then such payment shall be made on the next
succeeding Business Day. If any Person fails to pay any amount hereunder when due, such Person
agrees to pay, on demand, the Default Fee in respect thereof until paid in full; provided, however,
that such Default Fee shall not at any time exceed the maximum rate permitted by applicable law.
All computations of interest payable hereunder shall be made on the basis of a year of 360 days
(or, in the case of any calculation thereof based upon the Prime Rate, 365 or 366 days, as
applicable) for the actual number of days (including the first but excluding the last day) elapsed.

Section 1.5. Transfer of Records.

     (a) In connection with any sale or contribution of Receivables hereunder, each Originator
hereby contributes, sells, transfers, assigns and otherwise conveys to the Buyer all of its right
and title to and interest in the Records relating to all Receivables sold or contributed hereunder,
without the need for any further documentation in connection with such sale or contribution. In
connection with such transfer, each Originator hereby grants to each of the Buyer, the
Administrative Agent and the Servicer an irrevocable, non-exclusive license to use, without royalty
or payment of any kind, all software used by such Originator to account for the Receivables, to the
extent necessary to administer the Receivables, whether such software is owned by the applicable
Originator or is owned by others and used by any Originator under license agreements with respect
thereto, provided that should the consent of any licensor of such software be required for the
grant of the license described herein, to be effective, each Originator hereby agrees that upon the
request of the Buyer (or the Buyer’s assignee), such Originator will use its reasonable efforts to
obtain the consent of such third-party licensor. The license granted hereby shall be irrevocable
until the indefeasible payment in full of the Aggregate Unpaids, and shall terminate on the date
this Agreement terminates in accordance with its terms.

     (b) Each Originator (i) shall take such action requested by the Buyer and/or the
Administrative Agent (as Buyer’s assignee), from time to time hereafter, that may be necessary or
appropriate to ensure that the Buyer and its assigns under the Purchase Agreement have an
enforceable ownership interest in the Records relating to the Receivables purchased from any
Originator hereunder, and (ii) shall use its reasonable efforts to ensure that each of the Buyer,
the Administrative Agent and the Servicer has an enforceable right (whether by license or
sublicense or otherwise) to use all of the computer software used to account for the Receivables
and/or to re-create such Records.

Section 1.6. Characterization.

     If, notwithstanding the intention of the parties expressed in Section 1.1(c), any
transfer by any Originator to the Buyer of Receivables hereunder shall be characterized in any
manner other

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than a true sale or true contribution or such transfer for any reason shall be ineffective or
unenforceable, then this Agreement shall be deemed to constitute a security agreement under the
applicable UCC and other applicable law. For this purpose and without being in derogation of the
parties’ intention that each transfer shall constitute a true sale or true contribution and
absolute assignment thereof, each of the Originators hereby grants to the Buyer a security interest
in all of such Originator’s right, title and interest in, to and under (i) all Receivables existing
as of the close of business on the Initial Cutoff Date or thereafter arising from time to time
prior to the Termination Date, and all rights and payments relating thereto, (ii) all Related
Security relating thereto, whether existing on the Initial Cutoff Date or thereafter arising, (iii)
all Collections thereof, whether existing on the Initial Cutoff Date or thereafter arising, (iv)
each Lock-Box and each Lock-Box Account, whether existing on the Initial Cutoff Date or thereafter
arising, and (v) all proceeds of any of the foregoing, whether existing on the Initial Cutoff Date
or thereafter arising (collectively, the “Originator Collateral”), to secure the prompt and
complete payment of a loan deemed to have been made by the Buyer to each Originator in an amount
equal to the aggregate Purchase Price for the Purchased Receivables originated by such Subsidiary
Originator (or, in the case of CMC, the Purchase Price that would have been payable for its
Contributed Receivables had they not been contributed to the Buyer’s capital), together with all
other obligations of such Originator hereunder, which security interest, each of the Originators
hereby represents and warrants, is valid, duly perfected and prior to all Adverse Claims. The
Buyer and its assigns shall have, in addition to the rights and remedies which they may have under
this Agreement, all other rights and remedies provided to a secured creditor under the UCC and
other applicable law, which rights and remedies shall be cumulative.

Article II

Representations and Warranties

Section 2.1. Representations and Warranties of Each of the Originators.

     Each of the Originators hereby represents and warrants to the Buyer on the Closing Date and on
each date on which a Receivable comes into existence prior to the Termination Date:

     (a) Existence and Power. (i) Each of the Originators is duly incorporated, validly
existing and in good standing under the laws of its jurisdiction of incorporation, and is a
“registered organization” as defined in the UCC as in effect in such jurisdiction; (ii) each of the
Originators has all requisite corporate or limited liability company power and authority to own its
property and assets and to carry on its business as now conducted; (iii) each of the Originators is
qualified to do business in, and is in good standing (where relevant) in every jurisdiction where
its ownership, lease or operation of properties or the conduct of its business requires such
qualification, except where the failure to so qualify could not reasonably be expected to have a
Material Adverse Effect, and (iv) each of the Originators has the requisite corporate or limited
liability company power and authority to execute, deliver and perform its obligations under each of
the Transaction Documents to which it is a party. Each Originator’s jurisdiction of incorporation,
organizational identification number and federal employer identification number are correctly set
forth in Exhibit II attached hereto.

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     (b) Due Authorization. The execution, delivery and performance of the Transaction
Documents to which it is a party (i) have been duly authorized by all requisite corporate and, if
required, stockholder action, (ii) will not violate any provision of (A) any applicable law,
statute, rule or regulation or order of any Governmental Authority, where such violation would
result in a Material Adverse Effect, (B) its Organic Documents, (C) the Senior Credit Agreement, or
(D) any other indenture, agreement or other instrument by which any Originator is a party or by
which any of them or any of their property is bound, (iii) will not be in conflict with, result in
a breach of or constitute (alone or with notice or lapse of time or both) a default under or give
rise to any right to require the prepayment, repurchase or redemption of any obligation under (A)
the Senior Credit Agreement, or (B) any such other indenture, agreement or other instrument, or
(iv) result in the creation or imposition of any Adverse Claim upon or with respect to the
Originator Collateral.

     (c) Enforceability. This Agreement and each other Transaction Document to which any
Originator is a party have been duly executed and delivered by such Originator. This Agreement and
each other Transaction Document to which any Originator is a party delivered on the Closing Date
constitutes, and each other such Transaction Document when executed and delivered by such
Originator will constitute, a legal, valid and binding obligation of each Originator enforceable
against it in accordance with its terms, except as may be limited by bankruptcy, insolvency,
fraudulent transfer, reorganization, receivership, moratorium or similar laws of general
applicability relating to or limiting creditors’ rights generally or by general equity principles.
No transaction contemplated hereby requires compliance with any bulk sales act or similar law.

     (d) Governmental Approvals. No action, consent or approval of, registration or filing
with or any other action by any Governmental Authority is necessary or will be required in
connection with the Transaction Documents, except for (a) filings and registrations necessary to
perfect the Buyer’s ownership interest in the Originator Collateral and the Administrative Agent’s
security interests therein, and (b) such as have been made or obtained and are in full force and
effect.

     (e) Litigation; Compliance with Laws.

     (i) Except as disclosed in Performance Guarantor’s November 30, 2010 financial
statements, there are no actions, suits or proceedings at law or in equity or by or before
any Governmental Authority now pending or, to the knowledge of any Originator, threatened in
writing against any such Originator or any business, property or rights of any such Person
that is reasonably likely to be adversely determined, and which determination would have a
Material Adverse Effect.

     (ii) Neither any of the Originators or any of their respective material properties is
in violation of any applicable law, rule or regulation, or is in default with respect to any
judgment, writ, injunction, decree or order of any Governmental Authority, a breach of
which, individually or in the aggregate, would have a Material Adverse Effect.

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     (f) Taxes. Each of the Originators (or the Performance Guarantor on their behalf) has
filed or caused to be filed all Federal, state and other Tax returns required to have been filed by
it and has paid, caused to be paid, or made provisions for the payment of all Taxes due and payable
by it and all assessments received by it, except for the filing of such returns or the payment of
such Taxes and assessments, in each case, that are not overdue by more than 30 days, or if more
than 30 days overdue, the amount or validity of which are being contested in good faith by
appropriate proceedings and for which the applicable Originator or the Performance Guarantor, as
applicable, shall have set aside on its books adequate reserves in accordance with GAAP.

     (g) Accuracy of Information. To the knowledge of each of the Originators, the
information, reports, financial statements, exhibits and schedules furnished (as modified or
supplemented by other information so furnished) by or on behalf of the Performance Guarantor or any
Originator to the Buyer, the Administrative Agent or the Purchasers (other than projections and
other forward looking information and information of a general economic or industry specific
nature) on or prior to the Closing Date in connection with the transactions contemplated hereby
(taken as a whole) did not and, as of the Closing Date, does not contain any material misstatement
of 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 materially misleading.

     (h) Use of Proceeds. None of the Originators is engaged principally, or as one of its
important activities, in the business of purchasing or carrying Margin Stock or extending credit
for the purpose of purchasing or carrying Margin Stock. No part of the proceeds of any purchase
will be used (i) to purchase or carry any Margin Stock or to extend credit to others for the
purpose of purchasing or carrying any Margin Stock or (ii) for a purpose in violation of Regulation
U or Regulation X issued by the Board of Governors of the Federal Reserve System.

     (i) Good Title. Each Receivable constitutes an “account” or a “payment intangible”
within the meaning of the UCC. Immediately prior to its transfer hereunder and upon the creation
of each Receivable coming into existence after the Initial Cutoff Date, each of the Originators
owns and has good and marketable title thereto, free and clear of any Adverse Claim, except as
created by the Transaction Documents.

     (j) Perfection.

     (i) If any transfer by any Originator to the Buyer of Receivables hereunder shall be
characterized in any manner other than a true sale or true contribution or such transfer for
any reason shall be ineffective or unenforceable, this Agreement creates a valid and
continuing security interest (as defined in the UCC) in all right, title and interest of
each of the Originators in the Originator Collateral in favor of the Buyer, which security
interest is prior to all other Adverse Claims and is enforceable as such as against
creditors and purchasers from any of the Originators.

     (ii) If any transfer by any Originator to the Buyer of Receivables hereunder shall be
characterized in any manner other than a true sale or true contribution or such transfer for
any reason shall be ineffective or unenforceable, there have been duly filed

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all financing statements or other similar instruments or documents necessary under the
UCC (or any comparable law) of all appropriate jurisdictions to perfect the Buyer’s
ownership interest and security interest in the Originator Collateral.

     (k) Liens. Other than the security interest granted to the Buyer pursuant to this
Agreement, none of the Originators has pledged, assigned, sold, granted a security interest in, or
otherwise conveyed, any of the Originator Collateral.

     (l) Places of Business and Locations of Records. The Originators’ principal places of
business, chief executive offices and the offices where each of the Originators keeps all of its
Records are located at the address(es) listed on Exhibit II attached hereto or such other
locations of which the Buyer has been notified in accordance with Section 4.2(a) in
jurisdictions where all action required by Section 4.2(a) has been taken and completed.

     (m) Collections. The conditions and requirements set forth in Section 4.1(i)
have at all times been satisfied and duly performed. The names and addresses of all Collection
Banks, together with the account numbers of its Collection Accounts at each Collection Bank and the
post office box number of each Lock-Box, are listed on Exhibit III attached hereto. None
of the Originators has granted any Person, other than the Buyer (and its assigns), as contemplated
by this Agreement, dominion and control of any Lock-Box or Collection Account, or the right to take
dominion and control of any such Lock-Box or Collection Account at a future time or upon the
occurrence of a future event. Each of the Originators has complied with the terms of each, and not
made changes (without the prior written consent of the Administrative Agent) to any Collection
Account Agreement. All Obligors have been directed by it to make payments on their Receivables to
a Lock-Box listed on Exhibit III attached hereto.

     (n) Names. The name in which each of the Originators has executed this Agreement is
identical to its name as indicated on the public record of its jurisdiction of incorporation (as
contemplated by § 9-503(a)(1) of the UCC) and in the past five (5) years, it has not used any
corporate names, trade names or assumed names other than the name in which it has executed this
Agreement and as listed on Exhibit II attached hereto.

     (o) Ownership of the Buyer. CMC owns, directly or indirectly, 100% of the issued and
outstanding Equity Interests of the Buyer, free and clear of any Adverse Claim (subject to
Section 4.2(i), other than Adverse Claims granted in connection with any amendment of
refinancing of the Senior Credit Agreement). Such Equity Interests are validly issued, fully paid
and nonassessable, and there are no options, warrants or other rights to acquire securities of the
Buyer.

     (p) Not an Investment Company. None of the Originators is an “investment company” as
defined in the Investment Company Act of 1940, as amended, or any successor statute.

     (q) Compliance with Credit and Collection Policy. Each of the Originators has
complied with the Credit and Collection Policy in all material respects with regard to each
Receivable and the related Contract, and has not made any change to such Credit and Collection

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Policy, except such change as to which the Buyer (or its assigns) has been notified in
accordance with Section 4.1(a)(iv).

     (r) Fair Value. With respect to each Receivable purchased hereunder by the Buyer, (i)
the consideration received by the applicable Subsidiary Originator represents adequate
consideration and fair and reasonably equivalent value for such Purchased Receivable as of the date
of its acquisition hereunder and (ii) such consideration is not less than the fair market value of
such Purchased Receivable as of the date of its acquisition hereunder. With respect to each
Receivable contributed hereunder by CMC to the Buyer, (i) the consideration received by CMC
represents adequate consideration and fair and reasonably equivalent value for such Contributed
Receivable as of the date of its contribution hereunder and (ii) such consideration is not less
than the fair market value of such Contributed Receivable as of the date of its contribution
hereunder.

     (s) Enforceability of Contracts. Each Contract with respect to each Receivable is
effective to create, and has created, a valid and binding obligation of the related Obligor to pay
the Outstanding Balance of such Receivable created thereunder and any accrued interest thereon,
enforceable against such Obligor in accordance with its terms, except as such enforcement may be
limited by applicable bankruptcy, insolvency, reorganization or other similar laws relating to or
limiting creditors’ rights generally and by general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law).

     (t) Eligible Receivables. Each Receivable identified as an Eligible Receivable on any
Purchase Report was an Eligible Receivable on the date it was acquired from the applicable
Originator hereunder.

     (u) Accounting. In its stand-alone financial statements and unconsolidated
worksheets, each Originator accounts for the transactions contemplated by this Agreement as true
sales of the Receivables to the Buyer and/or as contributions of the Receivables to the Buyer’s
equity capital and not as loans secured thereby.

     (v) No Material Adverse Effect. Since November 30, 2010, no event, change or
condition has occurred that (individually or in the aggregate) has had, or could reasonably be
expected to have, an Material Adverse Effect.

     (w) No Termination Event. No event has occurred and is continuing and no condition
exists, or could result from any sale or contribution hereunder or from the application of the
proceeds therefrom, that constitutes a Termination Event.

     (x) OFAC. Neither the Performance Guarantor nor any Originator or any of their
Subsidiaries (i) is a Person whose property or interest in property is blocked or subject to
blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and
Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed.
Reg. 49079 (2001)), (ii) engages in any dealings or transactions prohibited by Section 2 of such
executive order, or is otherwise associated with any such person in any manner violative of Section
2, or (iii) is a Person on the list of Specially Designated

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Nationals and Blocked Persons or subject to the limitations or prohibitions under any other
OFAC regulation or executive order.

     (y) Originator Compliance. Each Originator is in compliance with: (i) the Trading
with the Enemy Act, as amended, and each of the foreign assets control regulations of the United
States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling
legislation or executive order relating thereto; and (ii) the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001),
as amended.

Article III

Conditions of Purchase

Section 3.1. Conditions Precedent to Closing.

     The occurrence of the Closing Date under this Agreement is subject to the conditions precedent
that (a) the Buyer shall have received on or before the Closing Date those documents listed on
Schedule A attached hereto and (b) all of the conditions to the effectiveness of the
Purchase Agreement shall have been satisfied or waived in accordance with the terms thereof.

Section 3.2. Conditions Precedent to Subsequent Payments.

     The Buyer’s obligation to pay for any Purchased Receivable or accept the contribution of any
Contributed Receivable coming into existence after the Initial Cutoff Date shall be subject to the
conditions precedent that: (a) the Facility Termination Date shall not have occurred under the
Purchase Agreement; and (b) on the date such Receivable came into existence, the following
statements shall be true (and acceptance of the proceeds of any payment for such Receivable shall
be deemed a representation and warranty by each of the Originators that such statements are then
true):

     (i) the representations and warranties set forth in Article II are true and correct in
all material respects on and as of the date such Receivable came into existence as though
made on and as of such date (except to the extent such representations and warranties refer
to an earlier date, in which case they shall be true and correct in all material respects as
of such earlier date); and

     (ii) no Termination Event is continuing.

Notwithstanding the foregoing conditions precedent, upon payment of the Purchase Price for any
Receivable (whether by payment of cash, through an increase in the amounts outstanding under a
Subordinated Note, by offset of amounts owed to the Buyer and/or by offset of capital
contributions), title to such Receivable and the other related Receivables Assets shall vest in the
Buyer, whether or not the conditions precedent to the Buyer’s obligation to pay for such Receivable
were in fact satisfied. The failure of any of the Originators to satisfy any of the foregoing
conditions precedent, however, shall give rise to a right of the Buyer to rescind the

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related purchase and direct the applicable Originator to pay to the Buyer an amount equal to the
Purchase Price payment that shall have been made with respect to any Receivables related thereto.

Article IV

Covenants

Section 4.1. Affirmative Covenants of Each of the Originators.

     Until the date on which this Agreement terminates in accordance with its terms, each of the
Originators hereby covenants as set forth below:

     (a) Financial Reporting. Each of the Originators will maintain, for itself and each
of its Subsidiaries, a system of accounting established and administered in accordance with GAAP,
and will furnish or cause to be furnished to the Buyer (or its assigns):

     (i) Originators’ Compliance Certificates. A compliance certificate in the form
of Exhibit IV hereto, duly executed by an Authorized Officer of each of the
Originators.

     (ii) Performance Guarantor Statements and Reports. Copies of all financial
statements, reports, registration statements and certificates furnished by the Performance
Guarantor pursuant to the Purchase Agreement.

     (iii) Copies of Notices. Promptly upon its receipt of any notice, request for
consent, financial statements, certification, report or other communication under or in
connection with any Collection Account Agreement or other Transaction Document from any
Person other than the Buyer, the Purchasers or the Administrative Agent, copies of the same.

     (iv) Change in Credit and Collection Policy. At least thirty (30) days prior
to the effectiveness of any change in or amendment to the Credit and Collection Policy, a
copy of the Credit and Collection Policy then in effect and a notice (A) indicating such
proposed change or amendment, and (B) if such proposed change or amendment could be
reasonably likely to adversely affect the collectability of the Receivables or decrease the
credit quality of any newly created Receivables, requesting the Buyer’s (and the
Administrative Agent’s, as the Buyer’s assignee) consent thereto.

     (v) Other Information. Promptly, from time to time, such other information,
documents, records or reports relating to the Receivables or the condition or operations,
financial or otherwise, of each of the Originators as the Buyer (or its assigns) may from
time to time reasonably request in order to protect the interests of the Buyer (and its
assigns) under or as contemplated by this Agreement.

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     (b) Notices. Each of the Originators will notify the Buyer in writing of any of the
following promptly upon learning of the occurrence thereof, describing the same and, if applicable,
the steps being taken with respect thereto:

     (i) Termination Events or Unmatured Termination Events. The occurrence of each
Termination Event and each Unmatured Termination Event, by a statement of its Authorized
Officer.

     (ii) Defaults Under Other Agreements. The occurrence of a default or an event
of default under any other financing arrangement pursuant to which it is a debtor or an
obligor; provided that no notice shall be required under this clause (ii) with respect to
any default involving less than $50,000,000.

     (c) Compliance with Laws and Preservation of Existence. Each of the Originators will
comply in all respects with all applicable laws, rules, regulations, orders, writs, judgments,
injunctions, decrees or awards to which it may be subject, except where the failure to comply is
not reasonably likely to result in an Material Adverse Effect. Each of the Originators will do or
cause to be done all things reasonably necessary to preserve, renew and maintain its legal
existence, rights, franchises and privileges in the jurisdiction of its incorporation, and qualify
and remain qualified in good standing as a foreign entity in each jurisdiction where its business
is conducted, except where the failure to do so would not result in a Material Adverse Effect.

     (d) Audits. Each of the Originators will furnish to the Buyer (or the Administrative
Agent) from time to time such information with respect to it and the Receivables as the Buyer (or
the Administrative Agent) may reasonably request. Each of the Originators will, from time to time
during regular business hours as reasonably requested by the Buyer (or the Administrative Agent),
upon at least 5 (five) Business Days notice and at its sole cost, permit the Buyer (and the
Administrative Agent) or their respective agents or representatives (i) to examine and make copies
of and abstracts from all Records in its possession or under its control relating to the
Receivables and the Related Security, including, without limitation, the related Invoices and
Contracts, and (ii) to visit its offices and properties for the purpose of examining such materials
described in clause (i) above, and to discuss matters relating to its financial condition
or the Receivables and the Related Security or its performance under any of the Transaction
Documents or its performance under the Contracts and, in each case, with any of its officers or
employees having knowledge of such matters (each such visit, a “Review”); provided that, so long as
no Termination Event has occurred and is continuing, the Originators shall only be responsible for
the costs and expenses of two (2) such Reviews in any one Contract Year.

     (e) Keeping and Marking of Records and Books.

     (i) Each of the Originators will maintain and implement administrative and operating
procedures (including, without limitation, an ability to recreate records evidencing
Receivables in the event of the destruction of the originals thereof), and keep and maintain
all documents, books, records and other information reasonably necessary or advisable for
the collection of all Receivables (including, without limitation, records adequate to permit
the immediate identification of each new Receivable and all

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Collections of and adjustments to each existing Receivable). Each of the Originators
will give the Buyer (or its assigns) notice of any change in the administrative and
operating procedures referred to in the previous sentence.

     (ii) Each of the Originators will (A) on or prior to the date hereof, mark its master
data processing records and other books and records relating to the Receivables with a
legend, acceptable to the Buyer (and the Administrative Agent), describing the Buyer’s
ownership interests in the Receivables and further describing ownership interests in the
Receivable of the Administrative Agent (on behalf of the Purchasers) under the Purchase
Agreement and (B) upon the reasonable request of the Buyer (or its assigns) following the
occurrence of a Termination Event hereunder: (1) mark each Contract with a legend
describing the Buyer’s ownership interests in the Receivables and further describing
ownership interests in the Receivable of the Administrative Agent (on behalf of the
Purchasers), and (2) deliver to the Buyer (or its assigns) all Contracts (including, without
limitation, all multiple originals of any such Contract) relating to the Receivables that
are in any of the Originators’ possession.

     (f) Compliance with Contracts and Credit and Collection Policy. Each of the
Originators will timely and fully (i) perform and comply in all material respects with all
provisions, covenants and other promises required to be observed by it under the Contracts related
to the Receivables, and (ii) comply in all material respects with the Credit and Collection Policy
in regard to each Receivable and the related Contract.

     (g) Ownership. Each of the Originators will take all necessary action to establish
and maintain, irrevocably in the Buyer, (i) legal and equitable title to the Receivables and the
Collections and (ii) all of its right, title and interest in the Related Security associated with
the Receivables, in each case, free and clear of any Adverse Claims other than Adverse Claims in
favor of the Buyer (and its assigns) (including, without limitation, the filing of all financing
statements or other similar instruments or documents necessary under the UCC (or any comparable
law) of all appropriate jurisdictions to perfect the Buyer’s security interest in the Receivables
Assets and such other action to perfect, protect or more fully evidence the security interest of
Buyer as Buyer (or its assigns) may reasonably request).

     (h) Separateness. Each of the Originators acknowledges that the Administrative Agent
and the Purchasers are entering into the transactions contemplated by the Purchase Agreement in
reliance upon the Buyer’s identity as a legal entity that is separate from the Performance
Guarantor, any of the Originators and any of their Affiliates. Therefore, from and after the date
of execution and delivery of this Agreement, each of the Originators will take all reasonable steps
including, without limitation, all steps that the Buyer or any assignee of the Buyer may from time
to time reasonably request to maintain the Buyer’s identity as a separate legal entity and to make
it manifest to third parties that the Buyer is an entity with assets and liabilities distinct from
those of the Performance Guarantor, any of the Originators and their Affiliates and not just a
division of any of the foregoing. Without limiting the generality of the foregoing and in addition
to the other covenants set forth herein, each of the Originators (i) will not hold itself out to
third parties as liable for the debts of the Buyer nor purport to own the Receivables Assets, (ii)
will take all other actions necessary on its part to ensure that the Buyer is

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at all times in compliance with the “separateness covenants” set forth in Section 5.1(i) of
the Purchase Agreement and (iii) will cause all tax liabilities arising in connection with the
transactions contemplated herein or otherwise to be allocated between it and the Buyer on an
arm’s-length basis and in a manner consistent with the procedures set forth in U.S. Treasury
Regulations §§1.1502-33(d) and 1.1552-1.

     (i) Collections. Each of the Originators will cause (i) all proceeds from all
Lock-Boxes to be directly deposited by a Collection Bank into a Collection Account and (ii) each
Lock-Box and Collection Account to be subject at all times to a Collection Account Agreement that
is in full force and effect. In the event any payments relating to Receivables or Related Security
are remitted directly to it or any of its Affiliates, it will remit (or will cause all such
payments to be remitted) directly to a Collection Bank and deposited into a Collection Account
within one (1) Business Day following receipt thereof and, at all times prior to such remittance,
it will itself hold or, if applicable, will cause such payments to be held in trust for the
exclusive benefit of the Buyer and its assigns. Each of the Originators will transfer exclusive
ownership, dominion and control of each Lock-Box and Collection Account to the Buyer and shall not
grant the right to take dominion and control of any Lock-Box or Collection Account at a future time
or upon the occurrence of a future event to any Person, except to the Buyer (or its assigns) as
contemplated by this Agreement and the Purchase Agreement.

     (j) Taxes. To the extent not done by the Performance Guarantor, each of the
Originators will file all Tax returns and reports required by law to be filed by it and promptly
pay all Taxes and governmental charges at any time owing, except any such taxes which are not yet
delinquent or are being diligently contested in good faith by appropriate proceedings and for which
adequate reserves in accordance with GAAP shall have been set aside on its books. Each of the
Originators will pay when due any Taxes payable in connection with the Receivables, exclusive of
Taxes on or measured by income or gross receipts of the Buyer and its assigns.

     (k) Accuracy of Information. All information hereinafter furnished by any of the
Originators or any of its Affiliates to the Buyer or the Administrative Agent (or any Purchaser)
for purposes of or in connection with this Agreement, any of the other Transaction Documents or any
transaction contemplated hereby or thereby will be true and accurate on the date such information
is stated or certified and will not contain any material misstatement of fact or omit to state a
material fact or any fact necessary to make the statements contained therein not misleading.

Section 4.2. Negative Covenants of the Each of the Originators.

     Until the date on which this Agreement terminates in accordance with its terms, each of the
Originators hereby covenants that:

     (a) Change in Name, Jurisdiction of Incorporation, Offices and Records. It will not
change (i) its name as it appears in the official public record in the jurisdiction of its
incorporation (as contemplated by Section 9-503(a)(1) of the UCC), (ii) its status as a “registered
organization” (within the meaning of Article 9 of any applicable enactment of the UCC), (iii) its
organizational identification number, if any, issued by its jurisdiction of incorporation, or (iv)
its

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jurisdiction of incorporation unless it shall have: (A) given the Buyer (or its assigns) at
least thirty (30) days’ prior written notice thereof; (B) at least ten (10) days prior to such
change, delivered to the Buyer (or its assigns) all financing statements, instruments and other
documents reasonably requested by the Buyer (or its assigns) in connection with such change or
relocation and (C) caused an opinion of counsel reasonably acceptable to the Buyer and its assigns
to be delivered to the Buyer and its assigns that the Buyer’s security interest is perfected and of
first priority, such opinion to be in form and substance similar to the related opinion delivered
on the Closing Date and otherwise reasonably acceptable to the Buyer and its assigns.

     (b) Change in Payment Instructions to Obligors. It will not add or terminate any bank
as a Collection Bank, or make any change in the instructions to Obligors of Receivables regarding
payments to be made to any Lock-Box or Collection Account, unless the Buyer (or its assigns) shall
have received, at least twenty (20) days before the proposed effective date therefor, (i) written
notice of such addition, termination or change and (ii) with respect to the addition of a
Collection Bank or a Collection Account or Lock-Box, an executed Collection Account Agreement with
respect to the new Collection Account or Lock-Box; provided, however, that it may make changes in
instructions to Obligors regarding payments if such new instructions require such Obligor to make
payments to another existing Collection Account and/or Lock-Box subject to a Collection Account
Agreement.

     (c) Modifications to Contracts and Credit and Collection Policy. It will not make any
change in or amendment to the Credit and Collection Policy that could reasonably be expected to
decrease the credit quality of any newly created Receivable or materially adversely affect the
collectability of the Receivables. Except as otherwise permitted in its capacity as Servicer
pursuant to the Purchase Agreement, it will not extend, amend or otherwise modify the terms of any
Receivable or any Contract related to such Receivable in any material respect other than in
accordance with the Credit and Collection Policy.

     (d) Sales, Liens. Subject to Section 4.2(i) and other than the ownership and security
interests contemplated by the Transaction Documents, it will not sell, assign (by operation of law
or otherwise) or otherwise dispose of, or grant any option with respect to, or create or suffer to
exist any Adverse Claim upon (including, without limitation, the filing of any financing statement)
or with respect to, any Receivables Asset, or upon or with respect to any Contract under which any
Receivable arises, or any Lock-Box or Collection Account, or assign any right to receive income
with respect thereto (other than, in each case, the creation of a security interest therein in
favor of the Buyer provided for herein), and it will defend the right, title and interest of the
Buyer in, to and under any of the foregoing property, against all claims of third parties claiming
through or under it. None of the Originators shall create or suffer to exist any Adverse Claim on
any of its inventory, the financing or lease of which gives rise to any Receivable.

     (e) Accounting for Purchase. It will not account for or treat (whether in financial
statements or otherwise) the transactions contemplated hereby in any manner other than the sale
and/or contribution and absolute assignment of the Receivables and the Related Security by it to
the Buyer or in any other respect account for or treat the transactions contemplated hereby in any
manner other than as a sale and/or contribution and absolute assignment of the Receivables and

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the Related Security by it to the Buyer except to the extent that such transactions are not
recognized on account of consolidated financial reporting in accordance with GAAP.

     (f) OFAC. It will not use and has not used the proceeds of any sale of Receivables
hereunder to fund any operations in, finance any investments or activities in or make any payments
to, a Sanctioned Person or a Sanctioned Country.

     (g) Foreign Corrupt Practices Act, Trading with the Enemy Act and Patriot Act. It
has not used and will not use the proceeds of any Receivable or any sale hereunder, directly or
indirectly, to make any payments to any governmental official or employee, political party,
official of a political party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper advantage, in
violation of (i) the United States Foreign Corrupt Practices Act of 1977, as amended, (ii) the
Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the
United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other
enabling legislation or executive order relating thereto and/or (iii) the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot
Act of 2001), as amended.

     (h) Deposits to Blocked Accounts and the Collection Account. It will not deposit or
otherwise credit, or cause or knowingly permit to be so deposited or credited, to any Collection
Account or Lock-Box cash or cash proceeds other than Collections.

     (i) Pledge and security agreements. It will not enter into any agreement to pledge
the capital stock of the Buyer or the Subordinated Notes unless the provisions of such pledge
agreement are consistent with the provisions set forth in
Schedule B hereto.

     (j) Divisions of each Originator. Without giving the Buyer and the Administrative
Agent at least fifteen (15) Business Days’ prior written notice, (i) it will not change or
otherwise modify (or permit or consent to any change or other modification of) any division listed
on Schedule C of the Purchase Agreement in a manner adversely affecting the security
interest of the Administrative Agent or the perfection thereof or (ii) it will not change or
otherwise modify (or permit or consent to any change or other modification of) the name of any such
division listed on Schedule C of the Purchase Agreement.

Article V

Termination Events

Section 5.1. Termination Events.

     The occurrence of any one or more of the following events shall constitute a Termination
Event:

          (a) Any representation, warranty, certification or statement made or deemed made by any of the
Originators in this Agreement, any other Transaction Document or in any

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other document delivered pursuant hereto or thereto shall prove to have been false or
misleading in any material respect when made or deemed made; provided that the materiality
threshold in this subsection shall not be applicable with respect to any representation or warranty
which itself contains a materiality threshold.

     (b) Any of the Originators shall fail to make any payment or deposit required hereunder when
due and such failure shall continue for one (1) Business Day.

     (c) Any of the Originators shall fail to perform any covenant contained in Section
1.1(b) or 4.2 when due and, in the case of a failure to perform under Section
4.2, such failure shall continue for five (5) Business Days after discovery thereof by the
applicable Originator.

     (d) Any of the Originators shall fail to perform or observe any other term, covenant or
agreement under any of the Transaction Documents and continues for thirty (30) days from the date
that is the earlier of (i) notice thereof to the applicable Originator by any Person and (ii)
discovery thereof by the applicable Originator.

     (e) An Event of Bankruptcy shall occur with respect to any of the Originators.

     (f) (i) A Performance Undertaking Default shall occur, (ii) the Performance Undertaking shall
cease to be effective or to be the legally valid, binding and enforceable obligation of the
Performance Guarantor, or (iii) the Performance Guarantor shall repudiate its obligations
thereunder.

     (g) The Internal Revenue Service shall file notice of a lien pursuant to Section 6323 of the
Code with respect to amounts in excess of $100,000 with regard to any of the Receivables or Related
Security and such lien shall not have been released within thirty (30) days.

Section 5.2. Remedies.

     Upon the occurrence and during the continuation of a Termination Event, the Buyer may take any
of the following actions: (a) declare the Termination Date to have occurred, whereupon the
Termination Date shall forthwith occur, without demand, protest or further notice of any kind, all
of which are hereby expressly waived by each of the Originators; provided, however, that upon the
occurrence of an Event of Bankruptcy with respect to any of the Originators or the Performance
Guarantor, or of an actual or deemed entry of an order for relief with respect to any of the
Originators or the Performance Guarantor, under the Federal Bankruptcy Code, the Termination Date
shall automatically occur, without demand, protest or any notice of any kind, all of which are
hereby expressly waived by each of the Originators and (b) to the fullest extent permitted by
applicable law, declare that the Default Fee shall accrue with respect to any amounts then due and
owing by any of the Originators to the Buyer. The aforementioned rights and remedies shall be
without limitation and shall be in addition to all other rights and remedies of the Buyer and its
assigns otherwise available under any other provision of this Agreement, by operation of law, at
equity or otherwise, all of which are hereby expressly preserved, including, without limitation,
all rights and remedies provided under the UCC, all of which rights shall be cumulative.

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Article VI

Indemnification

Section 6.1. Indemnities by the Each of the Originators.

     Without limiting any other rights that the Buyer may have hereunder or under applicable law,
each of the Originators hereby agrees to indemnify (and to pay, within thirty (30) days after
receipt of a reasonably detailed invoice, to) the Buyer, the Administrative Agent, the Purchasers,
and their respective Related Parties (each of the foregoing, an “Indemnified Party”) from and
against any and all damages, losses, claims, Taxes, liabilities, costs, reasonable expenses and for
all other amounts payable, including reasonable fees and disbursements of external counsel
(including local counsel) to the Indemnified Parties, awarded against or incurred by any of them
arising out of or as a result of this Agreement or the acquisition, either directly or indirectly,
by the Buyer of the Receivables (all of the foregoing being collectively referred to as
“Indemnified Amounts”), excluding, however, in all of the foregoing instances:

     (a) Indemnified Amounts to the extent a final judgment of a court of competent jurisdiction
holds that such Indemnified Amounts resulted from the gross negligence, fraud or willful misconduct
on the part of such Indemnified Party or any of its Related Parties;

     (b) Indemnified Amounts to the extent the same includes losses in respect of Receivables that
are uncollectible on account of the insolvency, bankruptcy or lack of creditworthiness or financial
inability or unwillingness to pay (other than a dispute giving rise to a Purchase Price Credit) of
the related Obligor; or

     (c) Excluded Taxes;

provided, however, that nothing contained in this sentence shall limit the liability of any of the
Originators or limit the recourse of the Buyer to any of the Originators for amounts otherwise
specifically provided to be paid by the applicable Originator under the terms of this Agreement,
and provided, further, that none of the Originators shall have an obligation to reimburse any
Indemnified Party for Indemnified Amounts unless such Indemnified Party, if requested, provides the
applicable Originator with an undertaking in which such Indemnified Party agrees to refund and
return any and all amounts paid by the applicable Originator to such Indemnified Party in respect
of any amounts described in the foregoing clauses (a), (b) and (c).
Without limiting the generality of the foregoing indemnification, but subject in each case to
clauses (a), (b) and (c) above, any of the Originators shall indemnify the
Buyer for Indemnified Amounts relating to or resulting from:

     (i) any representation or warranty made by any of the Originators (or any officers of
such Originators) under or in connection with any Purchase Report, this Agreement, any other
Transaction Document or any other information or report delivered by the applicable
Originator pursuant hereto or thereto for which the Buyer has not received a Purchase Price
Credit that shall have been false or incorrect when made or deemed made;

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     (ii) the failure by any Originator to comply with any applicable law, rule or
regulation with respect to any Receivable, Invoice or Contract related thereto, or the
nonconformity of any Receivable, Invoice or Contract included therein with any such
applicable law, rule or regulation or any failure of any Originator to keep or perform any
of its obligations, express or implied, with respect to any Contract;

     (iii) any failure of any Originator to perform its duties, covenants or other
obligations in accordance with the provisions of this Agreement or any other Transaction
Document (subject to applicable grace periods);

     (iv) any products liability, environmental liability, personal injury or damage, suit
or other similar claim arising out of or in connection with merchandise, insurance or
services that are the subject of any Contract or any Receivable;

     (v) any dispute, claim, offset or defense (other than discharge in bankruptcy of the
Obligor) of the Obligor to the payment of any Receivable (including, without limitation, a
defense based on such Receivable or the related Contract not being a legal, valid and
binding obligation of such Obligor enforceable against it in accordance with its terms), or
any other claim resulting from the sale of the merchandise or service related to such
Receivable or the furnishing or failure to furnish such merchandise or services;

     (vi) the commingling of Collections of Receivables at any time by any Originator or any
of its Affiliates with other funds;

     (vii) any investigation, litigation or proceeding related to or arising from this
Agreement or any other Transaction Document, the transactions contemplated hereby, the use
of the proceeds of any sale hereunder, the ownership of the Receivables or any other
investigation, litigation or proceeding relating to any Originator in which any Indemnified
Party becomes involved as a result of any of the transactions contemplated hereby;

     (viii) any Event of Bankruptcy with respect to any Originator or the Performance
Guarantor;

     (ix) any failure of the Buyer to obtain and maintain legal and equitable title to, and
ownership of, the Receivables and the Collections, and all of any Originators’ right, title
and interest in the Related Security associated with the Receivables, in each case, free and
clear of any Adverse Claim (except as created by the Transaction Documents);

     (x) the failure to have filed, or any delay in filing, financing statements or other
similar instruments or documents under the UCC of any applicable jurisdiction or other
applicable laws with respect to any Originator Collateral with respect thereto, and the
proceeds of any thereof, whether at the time of its acquisition or at any subsequent time,
except to the extent such failure or delay is caused by the Buyer or its assigns;

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     (xi) any action or omission by any Originator which reduces or impairs the rights of
the Buyer with respect to any Originator Collateral or the value of any Receivable;

     (xii) any attempt by any Person to void any sale or contribution hereunder under
statutory provisions or common law or equitable action; and

     (xiii) the failure of any Receivable reflected as an Eligible Receivable on any
Purchase Report to be an Eligible Receivable at the time acquired by the Buyer.

To the extent permitted by applicable law, none of the Originators shall assert and each Originator
hereby waives any claim against any Indemnified Party on any theory of liability for special,
indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out
of, in connection with, or as a result of, this Agreement or any other Transaction Document. The
provisions of this Section 6.1 shall survive termination of this Agreement and the Purchase
Agreement.

Section 6.2. Other Costs and Expenses.

     Each of the Originators shall pay to the Buyer on demand all reasonable and documented fees,
costs and out-of-pocket expenses in connection with the preparation, execution, delivery and
administration of this Agreement, the transactions contemplated hereby and the other documents to
be delivered hereunder, and any amendments to or waivers of the foregoing. Each of the Originators
shall pay to the Buyer on demand any and all reasonable fees, costs and expenses of the Buyer, if
any, and the Administrative Agent (as Buyer’s assignee), including reasonable and documented
counsel fees and expenses in connection with the enforcement of the Transaction Documents and in
connection with any restructuring or workout of the Transaction Documents or the administration of
the Transaction documents following a Termination Event.

Article VII

Miscellaneous

Section 7.1. Waivers and Amendments.

     (a) No failure or delay on the part of the Buyer (or its assigns) in exercising any power,
right or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right or remedy preclude any other further exercise thereof or
the exercise of any other power, right or remedy. The rights and remedies herein provided shall be
cumulative and nonexclusive of any rights or remedies provided by law. Any waiver of this
Agreement shall be effective only in the specific instance and for the specific purpose for which
given.

     (b) No provision of this Agreement may be amended, supplemented, modified or waived except in
writing signed by each of the Originators, the Buyer and the Administrative

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Agent and, to the extent required under the Purchase Agreement, the Purchasers or the Required
Purchasers.

Section 7.2. Notices.

     All communications and notices provided for hereunder shall be in writing (including email,
bank wire, or electronic facsimile transmission or similar writing) and shall be given to the other
parties hereto at their respective addresses or facsimile numbers set forth on the signature pages
hereof or at such other address or facsimile number as such Person may hereafter specify for the
purpose of notice to each of the other parties hereto. Each such notice or other communication
shall be effective (a) if given by facsimile, upon the receipt thereof, (b) if given by mail, three
(3) Business Days after the time such communication is deposited in the mail with first class
postage prepaid or (c) if given by electronic mail, upon delivery thereof to the last known valid
electronic mail address of the related recipient or (d) if given by any other means, when received
at the address specified in accordance with this Section 7.2.

Section 7.3. Protection of Ownership Interests of the Buyer.

     (a) Each of the Originators agrees that from time to time, at its expense, it will promptly
execute and deliver all instruments and documents, and take all actions, that may be necessary or
desirable, or that the Buyer (or its assigns) may reasonably request, to perfect, protect or more
fully evidence the interest of the Buyer (or its assigns) hereunder, or to enable the Buyer (or its
assigns) to exercise and enforce their rights and remedies hereunder. At any time following the
occurrence of a Termination Event or Potential Termination Event hereunder, the Buyer (or its
assigns) may, at any Originator’s sole cost and expense, direct any Originator to notify the
Obligors of Receivables of the ownership interest of the Buyer under this Agreement and may also
direct that payments of all amounts due or that become due under any or all Receivables be made
directly to the Buyer or its designee.

     (b) If, following the occurrence of a Termination Event or a Potential Termination Event
hereunder, any of the Originators fails to perform any of its obligations hereunder, the Buyer (or
its assigns) may (but shall not be required to) perform, or cause performance of, such obligations,
and the Buyer’s (or such assigns’) costs and expenses incurred in connection therewith shall be
payable by the Originators as provided in Section 6.2. Each of the Originators irrevocably
authorizes the Buyer (and its assigns) at any time and from time to time in the sole discretion of
the Buyer (or its assigns), and appoints the Buyer (and its assigns) as its attorney(ies)-in-fact,
to act on behalf of each of the Originators (i) to file on behalf of each of the Originators as
debtors financing statements necessary or desirable in the Buyer’s (or its assigns’) sole
discretion to perfect and to maintain the perfection and priority of the interest of the Buyer in
the Originator Collateral and associated Related Security and Collections and (ii) to file a
carbon, photographic or other reproduction of this Agreement or any financing statement with
respect to the Receivables as a financing statement in such offices as the Buyer (or its assigns)
in their sole discretion deem necessary or desirable to perfect and to maintain the perfection and
priority of the Buyer’s security interest in the Originator Collateral. This appointment is
coupled with an interest and is irrevocable.

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     (c) (i) Each of the Originators hereby authorizes the Buyer (or its assigns) to file financing
statements and other filing or recording documents with respect to the Receivables and Related
Security (including any amendments thereto, or continuation or termination statements thereof),
without the signature or other authorization of any of the Originators, in such form and in such
offices as the Buyer (or any of its assigns) reasonably determines appropriate to perfect or
maintain the perfection of the ownership or security interests of the Buyer (or its assigns)
hereunder, (ii) each of the Originators acknowledges and agrees that it is not authorized to, and
will not, file financing statements or other filing or recording documents with respect to the
Receivables or Related Security (including any amendments thereto, or continuation or termination
statements thereof), without the express prior written approval by the Administrative Agent (as the
Buyer’s assignee), consenting to the form and substance of such filing or recording document, and
(iii) each of the Originators hereby approves, authorizes and ratifies any filings or recordings
made by or on behalf of the Administrative Agent (as the Buyer’s assign) in connection with the
perfection of the ownership or security interests in favor of the Buyer or the Administrative Agent
(as the Buyer’s assign).

Section 7.4. Confidentiality.

     (a) Each of the Originators shall maintain and shall cause each of its employees and officers
to maintain the confidentiality of this Agreement, the Fee Letter and the other confidential or
proprietary information with respect to the Administrative Agent and the Purchasers and their
respective businesses obtained by it or them in connection with the structuring, negotiating and
execution of the transactions contemplated herein that has been identified to the Seller Parties as
confidential or proprietary, except that the any Originator and such Originators’ Affiliates,
officers and employees may disclose such information to such Originator’s (or such Affiliates’)
external accountants, consultants and attorneys and as required by any applicable law, Governmental
Authority or order of any judicial or administrative proceeding.

     (b) Anything herein to the contrary notwithstanding, each Originator hereby consents to the
disclosure of any nonpublic information with respect to it (i) to the Buyer, the Administrative
Agent or the Purchasers by each other, (ii) by the Buyer, the Administrative Agent or the
Purchasers to any prospective or actual assignee or participant of any of them and (iii) if
applicable, by the Purchasers and the Administrative Agent to any rating agency, Commercial Paper
dealer or provider of a surety, guaranty or credit or liquidity enhancement to any entity organized
for the purpose of purchasing, or making loans secured by, financial assets for which any Purchaser
or one of its Affiliates, acts as the administrative agent and to any officers, directors,
employees, outside accountants, attorneys, financial advisors and consultants of any of the
foregoing and (iv) by the Purchasers and the Administrative Agent to any judicial, administrative
or regulatory authority or in connection with proceedings (whether or not having the force or
effect of law) pursuant to any law, rule, regulation, direction, request or order of any such
judicial, administrative or regulatory authority or issued in proceedings.

     (c) The Buyer shall maintain and shall cause each of its employees and officers to maintain
the confidentiality of this Agreement and the other confidential or proprietary information with
respect to each of the Originators, the Obligors and their respective businesses

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obtained by it in connection with the due diligence evaluations, structuring, negotiating,
execution and administration of the Transaction Documents, and the consummation of the transactions
contemplated herein and any other activities of the Buyer arising from or related to the
transactions contemplated herein provided, however, that each of the Buyer and its employees and
officers shall be permitted to disclose such confidential or proprietary information: (i) to the
Administrative Agent and the initial Purchasers, (ii) to any officers, directors, employees,
outside accountants and attorneys of any of the foregoing who need to know such information and who
are instructed to maintain the confidentiality of such information in conformity with this
Section 7.4, and (iii) to the extent required pursuant to any applicable law, rule,
regulation, direction, request or order of any judicial, administrative or regulatory authority or
proceedings with competent jurisdiction (whether or not having the force or effect of law).

Section 7.5. Bankruptcy Petition.

     Each of the Originators covenants and agrees that, prior to the date that is one year and one
day after the payment in full of all outstanding obligations of the Buyer under the Purchase
Agreement, it will not institute against, or join any other Person in instituting against, the
Buyer or any commercial paper conduit that hereafter becomes a Purchaser under the Purchase
Agreement, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or
other similar proceeding under the laws of the United States or any state of the United States.

Section 7.6. Amounts to be paid by Buyer. 

     Notwithstanding anything in this Agreement to the contrary, the Buyer shall not have any
obligation to pay any amount required to be paid by it hereunder in excess of any amount available
to it after paying or making provision for the payment of its obligations under the Purchase
Agreement. All payment obligations of the Buyer hereunder are contingent on the availability of
funds in excess of the amounts necessary to pay its obligations under the Purchase Agreement.

Section 7.7. Setoff.

     (a) None of the Originators’ obligations under this Agreement shall be affected by any right
of setoff, counterclaim, recoupment, defense or other right the applicable Originator may have
against the Buyer, any of the Purchasers, the Administrative Agent or any assignee, all of which
setoff rights are hereby waived by each of the Originators as against such obligations.

     (b) The Buyer shall have the right to set-off against each of the Originators any amounts to
which any of the Originators may be entitled and to apply such amounts to any claims the Buyer may
have against the applicable Originator from time to time under this Agreement. Upon any such
set-off, the Buyer shall give notice of the amount thereof and the reasons therefor to the
applicable Originator.

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Section 7.8. CHOICE OF LAW.

     THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF TEXAS.

Section 7.9. CONSENT TO JURISDICTION.

     EACH OF THE ORIGINATORS HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY
UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK, NEW YORK IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY EACH ORIGINATOR
PURSUANT TO THIS AGREEMENT AND EACH ORIGINATOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT
OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES
ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT
THE RIGHT OF THE BUYER (OR ITS ASSIGNS) TO BRING PROCEEDINGS AGAINST ANY ORIGINATOR IN THE COURTS
OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY OF THE ORIGINATORS AGAINST THE BUYER (OR
ITS ASSIGNS) OR ANY AFFILIATE THEREOF INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY
ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY ANY
ORIGINATOR PURSUANT TO THIS AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW YORK.

Section 7.10. WAIVER OF JURY TRIAL.

     TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO HEREBY WAIVES TRIAL BY
JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN
TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS
AGREEMENT, EACH OTHER TRANSACTION DOCUMENT, ANY DOCUMENT EXECUTED BY ANY OF THE ORIGINATORS
PURSUANT TO THIS AGREEMENT OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR THEREUNDER.

Section 7.11. Integration; Binding Effect; Survival of Terms.

     (a) This Agreement and each other Transaction Document contain the final and complete
integration of all prior expressions by the parties hereto with respect to the subject matter
hereof and shall constitute the entire agreement among the parties hereto with respect to the
subject matter hereof superseding all prior oral or written understandings.

     (b) This Agreement shall be binding upon and inure to the benefit of each Originator, the
Buyer and their respective successors and permitted assigns (including any trustee in

Receivables Sale Agreement

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bankruptcy). No Originator may assign any of its rights and obligations hereunder or any
interest herein without the prior written consent of the Buyer. The Buyer may assign at any time
its rights and obligations hereunder and interests herein to any other Person without the consent
of any of the Originators. Without limiting the foregoing, each Originator acknowledges that the
Buyer, pursuant to the Purchase Agreement, may assign to the Administrative Agent, for the benefit
of the Purchasers, its rights, remedies, powers and privileges hereunder and that the
Administrative Agent may further assign such rights, remedies, powers and privileges to the extent
permitted in the Purchase Agreement. Each of the Originators agrees that the Administrative Agent,
as the assignee of the Buyer, shall, subject to the terms of the Purchase Agreement, have the right
to enforce this Agreement and to exercise directly all of the Buyer’s rights and remedies under
this Agreement (including, without limitation, the right to give or withhold any consents or
approvals of the Buyer to be given or withheld hereunder) and each of the Originators agrees to
cooperate fully with the Administrative Agent in the exercise of such rights and remedies. This
Agreement shall create and constitute the continuing obligations of the parties hereto in
accordance with its terms and shall remain in full force and effect until terminated in accordance
with its terms; provided, however, that the rights and remedies with respect to (i) any breach of
any representation and warranty made by any of the Originators pursuant to Article II; (ii)
the indemnification and payment provisions of Article VI; and (iii) Section 7.5
shall be continuing and shall survive any termination of this Agreement.

Section 7.12. Counterparts; Severability; Section References.

     This Agreement may be executed in any number of counterparts and by different parties hereto
in separate counterparts, each of which when so executed shall be deemed to be an original and all
of which when taken together shall constitute one and the same Agreement. Delivery of an executed
counterpart of a signature page by facsimile shall be effective as delivery of a manually executed
counterpart of this Agreement. Any provisions of this Agreement which are prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. Unless otherwise expressly indicated, all
references herein to “Article,” “Section,” “Schedule” or “Exhibit” shall mean articles and sections
of, and schedules and exhibits to, this Agreement.

Section 7.13. PATRIOT Act.

     The Administrative Agent, as the Buyer’s assignee, hereby notifies you on behalf of the
Purchasers that pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56
(signed into law October 26, 2001) (the “PATRIOT Act”), the Administrative Agent and the Purchasers
may be required to obtain, verify and record information that identifies each of the Originators
and the Performance Guarantor, which information includes the name, address, tax identification
number and other information regarding each of the Originators and the Performance Guarantor that
will allow the Administrative Agent and the Purchasers to identify each of the Originators and the
Performance Guarantor in accordance with the PATRIOT Act. This notice is given in accordance with
the requirements of the PATRIOT Act. Each of the

Receivables Sale Agreement

26

 

Originators agrees to provide the Administrative Agent, from time to time prior to and after
the Closing Date, with all documentation and other information required by bank regulatory
authorities under “know your customer” and anti-money laundering rules and regulations, including,
without limitation, the PATRIOT Act.

Receivables Sale Agreement

27

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered
by their duly authorized officers as of the date hereof.

	 	 	 	 	 	 	 

	 	 	COMMERCIAL METALS COMPANY,	 	 
	 	 	as an Originator	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Murray R. McClean
 

Murray R. McClean
	 	 
	 

	 	Title:
	 	President, Chief Executive Officer and
Chairman of the Board of Directors	 	 
	 
	 	 	Address for Notices:	 	 
	 	 	6565 N. MacArthur Blvd., Suite 800	 	 
	 	 	Irving, TX 75039	 	 
	 

	 	Attn:
	 	VP and Treasurer	 	 
	 

	 	Email:
	 	louis.federle@cmc.com	 	 
	 

	 	Phone:
	 	(214) 689-4370	 	 
	 

	 	Fax:
	 	(214) 932-7960	 	 

Receivables Sale Agreement - Signature Page

 

 

	 	 	 	 	 	 	 

	 	 	CMC COMETALS PROCESSING, INC.,	 	 
	 	 	as an Originator	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Eli Skornicki
 

Eli Skornicki
	 	 
	 

	 	Title:
	 	President	 	 

	 	 	 	 	 

	 	 	Address for Notices:
	 	 	6565 N. MacArthur Blvd., Suite 800
	 	 	Irving, TX 75039
	 

	 	Attn:
	 	VP and Treasurer
	 

	 	Email:
	 	louis.federle@cmc.com
	 

	 	Phone:
	 	(214) 689-4370
	 

	 	Fax:
	 	(214) 932-7960

Receivables Sale Agreement - Signature Page

 

 

	 	 	 	 	 	 	 

	 	 	HOWELL METAL COMPANY,	 	 
	 	 	as an Originator	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Louis A. Federle
 

Louis A. Federle
	 	 
	 

	 	Title:
	 	Treasurer	 	 

	 	 	 	 	 

	 	 	Address for Notices:
	 	 	6565 N. MacArthur Blvd., Suite 800
	 	 	Irving, TX 75039
	 

	 	Attn:
	 	VP and Treasurer
	 

	 	Email:
	 	louis.federle@cmc.com
	 

	 	Phone:
	 	(214) 689-4370
	 

	 	Fax:
	 	(214) 932-7960

Receivables Sale Agreement - Signature Page

 

 

	 	 	 	 	 	 	 

	 	 	STRUCTURAL METALS, INC.,	 	 
	 	 	as an Originator	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Louis A. Federle
 

Louis A. Federle
	 	 
	 

	 	Title:
	 	Treasurer	 	 

	 	 	 	 	 

	 	 	Address for Notices:
	 	 	6565 N. MacArthur Blvd., Suite 800
	 	 	Irving, TX 75039
	 

	 	Attn:
	 	VP and Treasurer
	 

	 	Email:
	 	louis.federle@cmc.com
	 

	 	Phone:
	 	(214) 689-4370
	 

	 	Fax:
	 	(214) 932-7960

Receivables Sale Agreement - Signature Page

 

 

	 	 	 	 	 	 	 

	 	 	CMC STEEL FABRICATORS, INC.	 	 
	 	 	as an Originator	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Louis A. Federle
 

Louis A. Federle
	 	 
	 

	 	Title:
	 	Treasurer	 	 

	 	 	 	 	 

	 	 	Address for Notices:
	 	 	6565 N. MacArthur Blvd., Suite 800
	 	 	Irving, TX 75039
	 

	 	Attn:
	 	VP and Treasurer
	 

	 	Email:
	 	louis.federle@cmc.com
	 

	 	Phone:
	 	(214) 689-4370
	 

	 	Fax:
	 	(214) 932-7960

Receivables Sale Agreement - Signature Page

 

 

	 	 	 	 	 	 	 

	 	 	SMI STEEL INC.	 	 
	 	 	as an Originator	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Louis A. Federle
 

Louis A. Federle
	 	 
	 

	 	Title:
	 	Treasurer	 	 

	 	 	 	 	 

	 	 	Address for Notices:
	 	 	6565 N. MacArthur Blvd., Suite 800
	 	 	Irving, TX 75039
	 

	 	Attn:
	 	VP and Treasurer
	 

	 	Email:
	 	louis.federle@cmc.com
	 

	 	Phone:
	 	(214) 689-4370
	 

	 	Fax:
	 	(214) 932-7960

Receivables Sale Agreement - Signature Page

 

 

	 	 	 	 	 	 	 

	 	 	SMI — OWEN STEEL COMPANY, INC.,	 	 
	 	 	as an Originator	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Louis A. Federle
 

Louis A. Federle
	 	 
	 

	 	Title:
	 	Treasurer	 	 

	 	 	 	 	 

	 	 	Address for Notices:
	 	 	6565 N. MacArthur Blvd., Suite 800
	 	 	Irving, TX 75039
	 

	 	Attn:
	 	VP and Treasurer
	 

	 	Email:
	 	louis.federle@cmc.com
	 

	 	Phone:
	 	(214) 689-4370
	 

	 	Fax:
	 	(214) 932-7960

Receivables Sale Agreement - Signature Page

 

 

	 	 	 	 	 	 	 

	 	 	AHT, INC.,	 	 
	 	 	as an Originator	 	 
	 

	 	By:	 	/s/ Louis A. Federle
 
	 	 
	 

	 	Name:

Title:	 	Louis A. Federle

Treasurer	 	 

	 	 	 	 	 

	 	 	Address for Notices:
	 	 	6565 N. MacArthur Blvd., Suite 800
	 	 	Irving, TX 75039
	 

	 	Attn:	 	VP and Treasurer
	 

	 	Email:	 	louis.federle@cmc.com
	 

	 	Phone:	 	(214) 689-4370
	 

	 	Fax:	 	(214) 932-7960

Receivables Sale Agreement - Signature Page

 

 

	 	 	 	 	 	 	 

	 	 	CMC RECEIVABLES, INC.,	 	 
	 	 	as the Buyer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Louis A. Federle
 

Louis A. Federle
	 	 
	 

	 	Title:
	 	Treasurer	 	 

	 	 	 	 	 

	 	 	Address for Notices:
	 	 	6565 N. MacArthur Blvd., Suite 1036
	 	 	Irving, TX 75039
	 

	 	Attn:
	 	Independent Director
	 

	 	Email:
	 	cmcreceivables@cmc.com
	 

	 	Phone:
	 	(214) 689-2702
	 

	 	Fax:
	 	(214) 689-5890

Receivables Sale Agreement - Signature Page

 

 

Exhibit I

Definitions

     This is Exhibit I to the Agreement (as hereinafter defined). As used in the Agreement
and the Exhibits and Schedules thereto, capitalized terms have the meanings set forth in this
Exhibit I (such meanings to be equally applicable to the singular and plural forms
thereof). If a capitalized term is used in the Agreement, or any Exhibit or Schedule thereto, and
is not otherwise defined therein or in this Exhibit I, such term shall have the meaning
assigned thereto in Exhibit I to the Purchase Agreement (hereinafter defined).

     “Additional Contributed Receivables” has the meaning specified in Section 1.2(b)(iii).

     “Administrative Agent” has the meaning specified in the Preliminary Statements.

     “Agreement” has the meaning specified in the preamble.

     “Available Cash” means, on any date of determination, cash available to the Buyer from any
source that is not required to be paid to or set aside for the benefit of the Administrative Agent
or the Purchasers under the Purchase Agreement.

     “Buyer” has the meaning specified in the preamble.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     “Collections” means, with respect to any Receivable, all cash collections and other cash
proceeds of such Receivable, including, without limitation, all Finance Charges, if any, all cash
proceeds of Related Security with respect to such Receivable and all Purchase Price Credits now or
hereafter owing in connection with such Receivable.

     “Contract” means a written agreement, pursuant to or under which an Obligor shall be obligated
to pay for merchandise purchased or services rendered and including all items and provisions
incorporated or implied by applicable law, including, without limitation, the relevant UCC.

     “Contributed Receivables” has the meaning specified in Section 1.1(a).

     “Contributed Receivables Assets” has the meaning specified in Section 1.1(a)

     “Default Fee” means a per annum rate of interest equal to the sum of (i) the Yield Rate plus
(ii) 2.00% per annum.

     “Discount Factor” means a percentage calculated to provide the Buyer with a reasonable return
on its investment in the Receivables after taking account of (i) the time value of money based upon
the anticipated dates of collection of the Receivables and the cost to the Buyer of financing its
investment in the Receivables during such period and (ii) the risk of nonpayment by

Receivables Sale Agreement

37

 

the Obligors. Each of the Originators and the Buyer may agree from time to time and
at any time to change the Discount Factor based on changes in one or more of the items affecting
the calculation thereof, provided that any change to the Discount Factor shall take effect as of
the commencement of a Calculation Period, shall apply only prospectively and shall not affect the
Purchase Price payment made prior to the Calculation Period during which each of the
Originators and the Buyer agree to make such change.

     “Equity Interests” means Capital Securities and all warrants, options or other rights to
acquire Capital Securities, but excluding any debt security that is convertible into, or
exchangeable for, Capital Securities.

     “Event of Bankruptcy” means, with respect to any Person, (i) that such Person (a) shall
generally not pay its debts as such debts become due or (b) shall admit in writing its inability to
pay its debts generally or (c) shall make a general assignment for the benefit of creditors; (ii)
any proceeding shall be instituted by or against such Person seeking to adjudicate it as bankrupt
or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or
the appointment of a receiver, trustee or other similar official for it or any substantial part of
its property, and, if instituted against such Person, shall remain undischarged for a period of 60
days; or (iii) such Person or any Subsidiary shall take any corporate or similar action to
authorize any of the actions set forth in the preceding clauses (i) or (ii).

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

     “Initial Cutoff Date” means March 31, 2011.

     “Invoice” means a written or electronic invoice, bill or statement of account evidencing a
Receivable, pursuant to or under which an Obligor shall be obligated to pay for merchandise
purchased or services rendered and including all items and provisions incorporated or implied by
applicable law, including, without limitation, the relevant UCC.

     “Margin Stock” has the meaning assigned to this term in Regulation U of the Board of Governors
of the Federal Reserve System as in effect from time to time.

     “Monthly Settlement Date” means the second Business Day after delivery of each Purchase Report
hereunder.

     “Net Worth” means, as of the last Business Day of each Calculation Period preceding any date
of determination, the excess, if any, of (i) the aggregate Outstanding Balance of the Receivables
at such time, over (ii) the sum of (A) the Aggregate Invested Amount outstanding at

Receivables Sale Agreement

38

 

such time, plus (B) the aggregate outstanding principal balance of the Subordinated Loans
(including any Subordinated Loan proposed to be made on the date of determination).

     “OFAC” means The United States Department of the Treasury’s Office of Foreign Assets Control.

     “Organic Documents” means, for any Person, the documents for its formation and organization,
which, for example, (i) for a corporation are its articles of incorporation, certificate of
incorporation or other corporate charter document, as applicable, and its bylaws, (ii) for a
partnership are its certificate of partnership (if applicable) and partnership agreement, (iii) for
a limited liability company are its certificate of formation or organization and its operating
agreement, regulations or the like and (iv) for a trust is the trust agreement, declaration of
trust, indenture or bylaws under which it is created.

     “Original Balance” means, with respect to any Receivable coming into existence after the date
hereof, the Outstanding Balance of such Receivable on the date it was created.

     “Originators” has the meaning specified in the preamble.

     “Originator Collateral” has the meaning specified in Section 1.6.

     “Performance Guarantor” means Commercial Metals Company, a Delaware corporation, and its
successors.

     “Performance Undertaking Default” has the meaning specified in the Performance Undertaking.

     “Purchase Agreement” has the meaning specified in the Preliminary Statements.

     “Purchase Price” means, with respect to any sale of Purchased Receivables by a Subsidiary
Originator hereunder, the aggregate price to be paid by the Buyer to the applicable Subsidiary
Originator in accordance with Section 1.2 for the Purchased Receivables Assets being sold
to the Buyer, which price shall equal on any date (i) the product of (A) the Outstanding Balance of
the Purchased Receivables on such date, multiplied by (B) one minus the Discount Factor in effect
on such date, minus (ii) any Purchase Price Credits to be credited against the Purchase Price
otherwise payable in accordance with Section 1.2.

     “Purchase Price Credit” has the meaning specified in Section 1.3.

     “Purchase Report” has the meaning specified in Section 1.1(b).

Receivables Sale Agreement

39

 

     “Purchased Receivables” has the meaning specified in Section 1.1(a).

     “Purchased Receivables Assets” has the meaning specified in Section 1.1(a).

     “Related Parties” means, with respect to any specified Person, such Person’s Affiliates and
the respective directors, officers, employees, trustees, agents and advisors of such Person and its
Affiliates.

     “Required Capital Amount” means, as of any date of determination, an amount equal to the
greater of (i) 50% of the Purchase Limit under the Purchase Agreement, and (ii) the product of (A)
1.5 times the product of the Default Ratio times the Default Horizon Ratio, each as
determined from the most recent Monthly Report received from the Servicer under the Purchase
Agreement, and (B) the Outstanding Balance of all Receivables as of such date, as determined from
the most recent Monthly Report or Interim Report received from the Servicer under the Purchase
Agreement.

     “Sanctioned Country” means a country subject to a sanctions program identified on the list
maintained by OFAC and available at:
http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html, or as otherwise published
from time to time.

     “Sanctioned Person” means (i) a person named on the list of Specially Designated Nationals or
Blocked Persons maintained by OFAC available at:
http://www.treas.gov/offices/eotffc/ofac/sdn/index.html, or as otherwise published from
time to time or (ii) (A) an agency of the government of a Sanctioned Country, (B) an organization
controlled by a Sanctioned Country, or (C) a person resident in a Sanctioned Country, to the extent
subject to a sanctions program administered by OFAC.

     “Subordinated Loan” has the meaning specified in Section 1.2(a).

     “Subordinated Note” means any promissory note in substantially the form of Exhibit V
as more fully described in Section 1.2, as the same may be amended, restated, supplemented
or otherwise modified from time to time.

     “Subsidiary Originator” has the meaning specified in the preamble.

     “Taxes” means any and all present or future taxes, levies, imposts, duties, deductions,
charges, liabilities or withholdings imposed by any Governmental Authority.

     “Termination Date” means the earliest to occur of (i) the Facility Termination Date (as
defined in the Purchase Agreement), (ii) the Business Day immediately prior to the occurrence of an
Event of Bankruptcy with respect to any of the Originators or the Performance Guarantor, (iii) the
Business Day specified in a written notice from the Administrative Agent as the Buyer’s assignee to
any Originator following the occurrence of any other Termination Event, and (iv) the date which is
10 Business Days after the Buyer’s receipt of written notice from the Originators that it wishes to
terminate the facility evidenced by this Agreement.

Receivables Sale Agreement

40

 

     “Termination Event” has the meaning specified in Section 5.1.

     “Transaction Documents” means, collectively, this Agreement, the Purchase Agreement, the Fee
Letter, the Collection Account Agreements, the Subordinated Note, the Performance Undertaking and
all of the other instruments, documents, certificates and other agreements executed and delivered
by any Originator or the Performance Guarantor in connection with any of the foregoing, in each
case, as the same may be amended, restated, supplemented or otherwise modified from time to time.

     “UCC” mean, with respect to any jurisdiction, the Uniform Commercial Code as from time to time
in effect in such jurisdiction.

     “Unmatured Termination Event” means an event which, with the passage of time or the giving of
notice, or both, could constitute a Termination Event.

All
accounting terms not specifically defined herein shall be construed
in accordance with GAAP. All terms used in Article 9 of the UCC in the State of New York, and not specifically defined
herein, are used herein as defined in such Article 9.

Receivables Sale Agreement

41

 

Exhibit II

Jurisdiction
of Incorporation; Organizational Identification Number; Principal Places of
Business; Chief 

Executive Office; Locations of Records; Federal Employer
Identification Number; Other Names

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Jurisdiction of	 	Organizational ID	 	 	 	Chief Executive Office and	 	Other
	Company	 	FEIN	 	Organization	 	Number	 	Principal Place of Business	 	Location of Records	 	Names
	CMC Receivables, Inc.
	 	 	 	Delaware	 	 	3404428	 	 	6565 N. MacArthur Blvd.

Suite 1036

Irving, TX 75039	 	6565 N. MacArthur Blvd.

Suite 1036

Irving, TX 75039	 	N/A
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Commercial Metals 

Company
	 	 	 	Delaware	 	 	406521	 	 	6565 N. MacArthur Blvd.

Suite 800

Irving, TX 75039	 	6565 N. MacArthur Blvd.

Suite 800

Irving, TX 75039	 	N/A
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CMC Cometals
Processing, Inc.
	 	 	 	Texas	 	 	20155900	 	 	6565 N. MacArthur Blvd.

Suite 800

Irving, TX 75039	 	6565 N. MacArthur Blvd.

Suite 800

Irving, TX 75039	 	Zenith Finance and
Construction
Company
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Howell Metal Company
	 	 	 	Virginia	 	 	0109465-5	 	 	574 New Market Depot Road

New Market, VA 22844	 	6565 N. MacArthur Blvd.

Suite 800

Irving, TX 75039	 	N/A
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Structural Metals, Inc.
	 	 	 	Texas	 	 	9292700	 	 	1 Steel Mill Drive

Seguin, TX 78155	 	6565 N. MacArthur Blvd.

Suite 800

Irving, TX 75039	 	N/A
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CMC Steel Fabricators,
Inc.
	 	 	 	Texas	 	 	42590700	 	 	1 Steel Mill Drive

Seguin, TX 78155	 	6565 N. MacArthur Blvd.

Suite 800

Irving, TX 75039	 	N/A
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SMI Steel Inc.
	 	 	 	Alabama	 	 	095-579	 	 	101 S. 50th Street

Birmingham, AL 35212	 	6565 N. MacArthur Blvd.

Suite 800

Irving, TX 75039	 	N/A
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SMI-Owen Steel
Company, Inc.
	 	 	 	South Carolina	 	 	940926090658	 	 	114 East Warehouse Court

Taylors, SC 29687	 	6565 N. MacArthur Blvd.

Suite 800

Irving, TX 75039	 	N/A
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AHT, Inc.
	 	 	 	Pennsylvania	 	 	2729876	 	 	108 Parkway East

Pell City, AL 35125	 	6565 N. MacArthur Blvd.

Suite 800

Irving, TX 75039	 	N/A

Receivables Sale Agreement

42

 

Exhibit III

Lock-Boxes; Collection Accounts; Collection Banks

A. ACCOUNTS WITH BANK OF AMERICA, N.A.

Bank of America, N.A.

2000 Clayton Road, Building D

Concord, CA 94520-2425

Attn: Blocked Account Support

Mail Code: CA4-704-06-37

	 	 	 	 	 	 	 	 	 
	Company	 	Bank	 	Account Name	 	Account Number	 	Lockbox Number
	Commercial Metals 

Company
	 	Bank of America
	 	CMC Recycling	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Commercial Metals 

Company
	 	Bank of America
	 	CMC Cometals	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Commercial Metals 

Company
	 	Bank of America
	 	CMC Cometals Steel	 	 	 	 

B. ACCOUNTS WITH BANK OF NEW YORK MELLON

Bank of New York Mellon

The Bank of New York Mellon

Document Control Manager

BNY Mellon Client Service Center

500 Ross Street, Room 1380

Pittsburgh, PA 15262

	 	 	 	 	 	 	 	 	 
	Company	 	Bank	 	Account Name	 	Account Number	 	Lockbox Number
	Commercial Metals 

Company
	 	Bank of New York

Mellon
	 	CMC Recycling	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Commercial Metals 

Company
	 	Bank of New York

Mellon
	 	CMC Cometals Steel	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Howell Metal Company
	 	Bank of New York

Mellon
	 	CMC Howell Metal	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Structural Metals, 

Inc.
	 	Bank of New York

Mellon
	 	CMC Steel	 	 	 	 

Receivables Sale Agreement

43

 

Exhibit IV

Form of Compliance Certificate

To: Wells Fargo Bank, N.A., as Administrative Agent

     This Compliance Certificate is furnished pursuant to that certain Receivables Sale Agreement
dated as of April 5, 2011, between COMMERCIAL METALS COMPANY, a Delaware corporation, CMC COMETALS
PROCESSING, INC., a Texas corporation, HOWELL METAL COMPANY, a Virginia corporation, STRUCTURAL
METALS, INC., a Texas corporation, CMC STEEL FABRICATORS, INC., a Texas corporation, SMI STEEL,
INC., a Alabama corporation, SMI — OWEN STEEL COMPANY, INC., a South Carolina corporation and AHT,
INC., a Pennsylvania corporation, as sellers and CMC RECEIVABLES, INC., a Delaware corporation, as
buyer (the “Agreement”). Capitalized terms used and not otherwise defined herein are used with the
meanings attributed thereto in the Agreement.

     THE UNDERSIGNED HEREBY CERTIFIES THAT:

     1. I am the duly elected ______________ of ____________ (the “Company”).

     2. Attached hereto are financial statements of the Company and its consolidated Subsidiaries
for the ____ ended _________, 201_, prepared in accordance with GAAP (excluding the footnotes)
consistently applied throughout the period covered thereby, except as otherwise noted therein.
Such financial statements present fairly the financial condition and results of operations and cash
flows of the Company and its consolidated Subsidiaries as of the dates and for the periods covered
thereby.

     3. I have no knowledge of, the existence of any condition or event which constitutes a
Termination Event or an Unmatured Termination Event, as each such term is defined under the
Agreement, as of the date of this Certificate[, except as set forth in paragraph 4 below].

     4. Described below are the exceptions, if any, to paragraph 3 by listing, in detail,
the nature of the condition or event, the period during which it has existed and the action which
the Company has taken, is taking, or proposes to take with respect to each such condition or event:
_____________________].

     The foregoing certifications and the financial statements delivered with this Certificate in
support hereof, are made and delivered this ____ day of ______________, 201_.

	 	 	 	 	 	 	 

	 
	 	By:	 	

 
	 	 
	 
	 	Name:	 	 	 	 
	 
	 	Title:	 	 	 	 

Receivables Sale Agreement

44

 

Exhibit V

Form of Subordinated Note

SUBORDINATED NOTE

April __, 2011

     1. Note. FOR VALUE RECEIVED, the undersigned, CMC RECEIVABLES, INC., a Delaware
corporation (the “Buyer”), hereby unconditionally promises to pay to _______________ (the
“Originator”), in lawful money of the United States of America and in immediately available funds,
the aggregate unpaid principal sum outstanding of all “Subordinated Loans” made from time to time
by the Originator to the Buyer pursuant to and in accordance with the terms of that certain
Receivables Sale Agreement, dated as of April 5, 2011, between the Originator, the parties thereto
and the Buyer (as amended, restated, supplemented or otherwise modified from time to time, the
“Sale Agreement”). Reference to Section 1.2 of the Sale Agreement is hereby made for a
statement of the terms and conditions under which the loans evidenced hereby have been and will be
made. All terms which are capitalized and used herein and which are not otherwise specifically
defined herein shall have the meanings ascribed to such terms in the Sale Agreement.

     2. Interest. The Buyer further promises to pay interest on the outstanding unpaid
principal amount hereof from the date hereof until payment in full hereof at a rate equal to the
Yield Rate (as defined in the Purchase Agreement), computed for actual days elapsed on the basis of
a year consisting of 360 days, on each Monthly Settlement Date hereafter on which no Amortization
Event or Potential Amortization Event (each, as defined in the Purchase Agreement) exists and is
continuing, to the extent of the Buyer’s Available Cash (it being understood and agreed that any
amount of interest which the Buyer is precluded from paying due to the existence and continuance of
an Amortization Event or Potential Amortization Event or the lack of sufficient Available Cash
shall become due and payable on the next Monthly Settlement Date on which no such condition
persists); provided, however, that if the Buyer shall default in the payment of any principal
hereof, the Buyer promises to pay, on demand, interest at the rate equal to the Yield Rate plus
2.00% per annum on any such unpaid amounts, from the date such payment is due to the date of actual
payment; and provided further, that the Buyer may elect on the date any interest payment is due
hereunder to defer such payment and upon such election the amount of interest due but unpaid on
such date shall constitute principal under this Subordinated Note. The outstanding unpaid interest
of any loan made under this Subordinated Note shall be due and payable on Termination Date and may
be paid with the prepayment of principal at any time without premium or penalty.

     3. Principal Payments. On each Monthly Settlement Date hereafter on which no
Amortization Event or Potential Amortization Event (each, as defined in the Purchase Agreement)
exists and is continuing, the Buyer shall pay to the Originator the outstanding principal balance
of this Subordinated Note to the extent of the Buyer’s Available Cash (it being understood and
agreed that any amount of principal which the Buyer is precluded from paying due to the existence
and continuance of an Amortization Event or Potential Amortization Event or the lack of sufficient
Available Cash shall become due and payable on the next Monthly

Exh VII - 1

 

Settlement Date on which no such condition persists). The Originator is authorized and
directed by the Buyer to enter on the grid attached hereto, or, at its option, in its books and
records, the date and amount of each loan made by it which is evidenced by this Subordinated Note
and the amount of each payment of principal made by the Buyer, and absent manifest error, such
entries shall constitute prima facie evidence of the accuracy of the information so entered;
provided that neither the failure of the Originator to make any such entry or any error therein
shall expand, limit or affect the obligations of the Buyer hereunder. The outstanding principal of
any loan made under this Subordinated Note shall be due and payable on the Termination Date and may
be repaid or prepaid at any time without premium or penalty.

     4. Subordination. The Originator shall have the right to receive, and the Buyer shall
make, any and all payments and prepayments relating to the loans made under this Subordinated Note,
provided that, after giving effect to any such payment or prepayment, the aggregate Outstanding
Balance of Receivables (as each such term is defined in the Purchase Agreement) owned by the Buyer
at such time exceeds the sum of (i) the Aggregate Unpaids (as defined in the Purchase Agreement)
outstanding at such time under the Purchase Agreement, plus (ii) the aggregate outstanding
principal balance of all loans made under this Subordinated Note. The Originator hereby agrees
that at any time during which the conditions set forth in the proviso of the immediately preceding
sentence shall not be satisfied, the Originator shall be subordinate in right of payment to the
prior payment of any indebtedness or obligation of the Buyer owing to the Administrative Agent or
any Purchaser under that certain Receivables Purchase Agreement, dated as of April 5, 2011 by and
among the Buyer, Commercial Metals Company, as initial Servicer, the Purchasers from time to time
party thereto, and Wells Fargo Bank, N.A., as the “Administrative Agent” (as amended, restated,
supplemented or otherwise modified from time to time, the “Purchase Agreement”). The subordination
provisions contained herein are for the direct benefit of, and may be enforced by, the
Administrative Agent and each of the Purchasers and/or any of their respective assignees
(collectively, the “Senior Claimants”) under the Purchase Agreement. Until the date on which the
“Aggregate Invested Amount” outstanding under the Purchase Agreement has been repaid in full and
all other obligations of the Buyer and/or the Servicer thereunder and under the “Fee Letter”
referenced therein (all such obligations, collectively, the “Senior Claim”) have been indefeasibly
paid and satisfied in full, the Originator shall not institute against the Buyer any proceeding of
the type described in the definition of “Event of Bankruptcy” in the Sale Agreement unless and
until the Termination Date has occurred. Should any payment, distribution or security or proceeds
thereof be received by the Originator in violation of this Section 4, the Originator agrees
that such payment shall be segregated, received and held in trust for the benefit of, and deemed to
be the property of, and shall be immediately paid over and delivered to the Administrative Agent
for the benefit of the Senior Claimants.

     5. Bankruptcy; Insolvency. Upon the occurrence of any Event of Bankruptcy involving
the Buyer as debtor, then and in any such event the Senior Claimants shall receive payment in full
of all amounts due or to become due on or in respect of the Aggregate Invested Amount and the
Senior Claim (including “Yield” as defined and as accruing under the Purchase Agreement after the
commencement of any such proceeding, whether or not any or all of such Yield is an allowable claim
in any such proceeding) before the Originator is entitled to receive payment on account of this
Subordinated Note, and to that end, any payment or distribution of assets of the Buyer of any kind
or character, whether in cash, securities or other property, in any

Exh VII - 2

 

applicable insolvency proceeding, which would otherwise be payable to or deliverable upon or
with respect to any or all indebtedness under this Subordinated Note, is hereby assigned to and
shall be paid or delivered by the Person making such payment or delivery (whether a trustee in
bankruptcy, a receiver, custodian or liquidating trustee or otherwise) directly to the
Administrative Agent for application to, or as collateral for the payment of, the Senior Claim
until such Senior Claim shall have been paid in full and satisfied.

     6. Amendments. This Subordinated Note shall not be amended or modified except in
accordance with Section 7.1 of the Sale Agreement. The terms of this Subordinated Note may
not be amended or otherwise modified without the prior written consent of the Administrative Agent
for the benefit of the Purchasers.

     7. GOVERNING LAW. THIS SUBORDINATED NOTE HAS BEEN MADE AND DELIVERED AT NEW YORK, NEW
YORK, AND SHALL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED IN
ACCORDANCE WITH THE LAWS AND DECISIONS OF THE STATE OF NEW YORK. WHEREVER POSSIBLE EACH PROVISION
OF THIS SUBORDINATED NOTE SHALL BE INTERPRETED IN SUCH MANNER AS TO BE EFFECTIVE AND VALID UNDER
APPLICABLE LAW, BUT IF ANY PROVISION OF THIS SUBORDINATED NOTE SHALL BE PROHIBITED BY OR INVALID
UNDER APPLICABLE LAW, SUCH PROVISION SHALL BE INEFFECTIVE TO THE EXTENT OF SUCH PROHIBITION OR
INVALIDITY, WITHOUT INVALIDATING THE REMAINDER OF SUCH PROVISION OR THE REMAINING PROVISIONS OF
THIS SUBORDINATED NOTE.

     8. Waivers. All parties hereto, whether as makers, endorsers, or otherwise, severally
waive presentment for payment, demand, protest and notice of dishonor. The Originator additionally
expressly waives all notice of the acceptance by any Senior Claimant of the subordination and other
provisions of this Subordinated Note and expressly waives reliance by any Senior Claimant upon the
subordination and other provisions herein provided.

     9. Assignment. This Subordinated Note may not be assigned, pledged or otherwise
transferred to any party other than the Originator without the prior written consent of the
Administrative Agent, and any such attempted transfer shall be void.1

	 	 	 	 	 	 	 

	 	 	CMC RECEIVABLES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

 

			
	1	 	Please note that this subordinated note may
not be pledged without consent.

Exh VII - 3

 

Schedule

to

Subordinated Note

SUBORDINATED LOANS AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	 	 	Unpaid	 	 
	 	 	Subordinated	 	Amount of Principal	 	Principal	 	Notation made
	Date	 	Loan	 	Paid	 	Balance	 	by (initials)
	 
	 	 	 	 	 	 	 	 	 

Exh VII - 4

 

Exhibit VI

Form of Purchase Report

Form of Purchase Report

For the Settlement Period beginning [date] and ending [date]

TO: THE BUYER AND THE ADMINISTRATIVE AGENT (AS BUYER’S ASSIGNEE)

	 	 	 	 	 	 	 	 	 	 	 	 

	Aggregate Outstanding Balance of all
Receivables sold during the period:
	 	$	_____________	 	 		 	 	 	A	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Less: Aggregate Outstanding Balance of all
Receivables sold during such period which were
not Eligible Receivables on the date when sold:
	 	$	(____________	)	 		 		 	(B	)
	 
	 	 	 	 	 	 	 	 	 	 	 
	Equals: Aggregate Outstanding Balance of all
Eligible Receivables sold during the period (A –
B):
	 		 	 	 	$	___________	 	 	=C	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Less: Purchase Price discount during the Period:
	 	$	(____________	)	 		 		 	(D	)
	 
	 	 	 	 	 	 	 	 	 	 	 
	Equals: Gross Purchase Price Payable during the
period (C – D)
	 		 	 	 	$	____________	 	 	=E	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Less: Total Purchase Price Credits arising
during the Period:
	 	$	(____________	)	 		 	 	 	(F	)
	 
	 	 	 	 	 	 	 	 	 	 	 
	Equals: Net Purchase Price payable during the
Period (E – F):
	 		 	 	 	$	____________	 	 	=G	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Cash Purchase Price Paid to each Originator
during the Period:
	 	$	_____________
	 	 		 	 	 	H	 
	 
	 	$	_____________	 	 		 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Subordinated Loans made during the Period:
	 	$	_____________	 	 		 	 	 	I	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Repayments of Subordinated Loans received during
the Period:
	 	$	____________	 	 		 	 	 	J	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Reduction of CMC’s equity in Buyer during the
Period:
	 	$	____________	 	 		 	 	 	K	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	Aggregate Outstanding Balance of Receivables
contributed during the Period:
	 	$	_____________	 	 		 	 	 	L	 

Exh VII - 5

 

Schedule A

Documents to be Delivered to Buyer

on or Prior to the Closing Date

     1. The Receivables Sale Agreement, duly executed by the parties thereto.

     2. A copy of the Credit and Collection Policy to attach to the Receivables Sale Agreement as
an Exhibit.

     3. A certificate of the Secretary or Assistant Secretary of each of the Originators and the
Performance Guarantor certifying:

     (a) A copy of the Resolutions of the Board of Directors of such Person, authorizing its
execution, delivery and performance of the Transaction Documents to which it is a party;

     (b) A copy of its Organic Documents (certified, to the extent that such documents are filed
with any governmental authority, by the Secretary of State of its jurisdiction of incorporation on
or within thirty (30) days prior to the Closing Date); and

     (c) Good Standing Certificates for each of the Originators issued by the Secretary of State of
formation or incorporation, in each case dated on or within thirty (30) days prior to the Closing
Date.

     (d) The names and signatures of the officers authorized on the applicable Originators’ behalf
to execute the Transaction Documents to which it is party.

     4. Pre-filing state and federal tax lien, judgment lien and UCC lien searches against each of
the Originators dated on or within thirty (30) days prior to the Closing Date from the
jurisdictions acceptable to the Buyer and its assigns.

     5. UCC-1 financing statements for each of the Originators in form suitable for filing in the
State of formation or incorporation, as applicable naming the applicable Originator as the
debtor/seller and the Administrative Agent as the total assignee of secured party and reasonably
describing the Receivables Assets.

     6. UCC termination statements or amendments (if any), necessary to release all security
interests and other rights of any Person in the Receivables Assets previously granted by any
Originator and other related release documentation.

     7. Executed copies of Collection Account Agreements for each Lock-Box and Collection Account.

     8. One or more favorable opinions of legal counsel for the Originators and the Performance
Guarantor reasonably acceptable to the Buyer (and the Administrative Agent, as the Buyer’s
assignee) which addresses the following matters and such other matters as the Administrative Agent
may reasonably request:

Receivables Sale Agreement

6

 

     (a) valid existence, good standing, due authorization, execution, delivery, enforceability and
other corporate matters with respect to each of the Originators and the Performance Guarantor;

     (b) the creation of a valid and perfected security interest in favor of the Buyer (and the
Administrative Agent, for the benefit of the Purchasers and its assigns) in (i) all of the
Receivables Assets and (ii) all proceeds of any of the foregoing;

     (c) the existence of a “true sale” of the Receivables from each of the Originators to the
Buyer under this Agreement;

     (d) the inapplicability of the doctrine of substantive consolidation to the Buyer and the
Originators, the Performance Guarantor and their respective Subsidiaries in connection with any
bankruptcy proceeding involving any of the foregoing.

     10. A Compliance Certificate signed by one either chief executive officer, chief financial
officer, any vice president, principal accounting officer, treasurer or assistant treasurer of each
of the Originators and the Performance Guarantor certifying that, as of the Closing Date, no
Termination Event or Unmatured Termination Event exists and is continuing.

     11. If applicable, executed copies of (i) all consents from and authorizations by any Persons
and (ii) all waivers and amendments to existing credit facilities, that are necessary in connection
with the Receivables Sale Agreement and the Transaction Documents.

     12. One separate executed Subordinated Note in favor of each of the Originators.

     13. The Performance Undertaking, duly executed by the Performance Guarantor in favor of the
Buyer.

     14. If applicable, a direction letter executed by the Originators authorizing the Buyer (and
the Administrative Agent, as its assignee) and directing warehousemen to allow the Buyer (and the
Administrative Agent, as its assignee) to inspect and make copies from the Originators’ books and
records maintained at off-site data processing or storage facilities.

     15. The Purchase Agreement, duly executed by each of the parties thereto, and delivery of all
documents and opinions and payment of all fees, required thereunder.

Receivables Sale Agreement

7

 

Schedule B

Provisions to be included in any pledge

          Stock of CMC Receivables Inc.; Limitation on Actions. The parties hereto acknowledge
that the pledge hereunder of the capital stock (the “SPV Stock”) of CMC Receivables Inc., a
Delaware corporation (“SPV”), and certain subordinated notes made by the SPV in favor of the
Grantors (the “Subordinated Notes”) and, collectively with the SPV Stock, the “SPV Assets”), is
prohibited by the terms of the Transaction Documents unless certain limitations with respect to the
pledge of the SPV Assets are set forth herein. As used herein the term “Lenders’ Agent” shall
refer to any entity acting as agent holding collateral under bank facility agreement for the
benefit of certain lenders.

          To induce the Administrative Agent, on behalf of the Purchasers (collectively, the
“Securitization Secured Parties”), to permit the pledge of the SPV Assets to any Lenders’ Agent,
the parties hereto agree to the following limitations:

          (a) Notwithstanding anything to the contrary contained herein:

               (i) Prior to the Facility Termination Date, each the holders of any Subordinated Note
(“Noteholders”) and the Lenders’ Agent agrees that it will not, without the prior written consent
of the Administrative Agent, take any action adverse to the interests of the of the Securitization
Secured Parties under or related to the Transaction Documents, including, without limitation, (i)
exercising any voting rights with respect to the SPV Stock, (ii) foreclosing (whether by
contractual, judicial or non-judicial foreclosure or otherwise) on the SPV Assets or exercise any
other rights and remedies in respect of the SPV Assets, (iii) causing or consenting to (A) any
amendment or other modification to the certificate of incorporation, by-laws or other
organizational documents of SPV or to any Subordinated Note, (B) any merger, consolidation or other
combination of SPV with or into any other Person or (C) any failure of SPV to perform or comply
with the Receivables Sale Agreement including any of SPV’s payment obligations under the
Receivables Sale Agreement, (iv) causing SPV to violate or breach any term or provision in any
Transaction Document, (v) causing SPV to incur any debt, other than, in each case, as may be
allowed in the Transaction Documents or (vi) otherwise taking any action which would compromise or
call into question the intended bankruptcy-remote structure of the transactions contemplated by the
Purchase Agreement and the other Transaction Documents;

               (ii) Prior to the Facility Termination Date, (A) in the event that any Noteholder or the
Lenders’ Agent, receives any payments or funds constituting collateral under the Transaction
Documents, such Noteholder or the Lenders’ Agent, as applicable, shall hold such payments or funds
in trust for the benefit of the Administrative Agent, and shall promptly transfer such payments or
funds to the Administrative Agent and (B) each of the Noteholders and the Lenders’ Agent, for
itself and for the Lenders, agrees that, with respect to the SPV Assets, it will not, without the
prior written consent of the Administrative Agent or as permitted under the Purchase Agreement,
make or receive any dividends or distributions on such collateral;

Receivables Sale Agreement

8

 

               (iii) Prior to the Facility Termination Date, (A) this Section __ shall not be amended,
restated, supplemented or otherwise modified without the prior written consent of the
Administrative Agent, at the reasonable discretion of the Administrative Agent, and the provisions
of this Section ___ shall be contained in any agreement that amends and restates this Agreement and
(B) each of the Noteholders and the Lenders’ Agent, for itself and for the Lenders agrees that no
such party shall enter into any additional agreement that would adversely affect the rights of the
Administrative Agent and/or the Securitization Secured Parties set forth in Section __ hereof; and

               (iv) Prior to the date that is one year and one day after the Facility Termination Date, each
of Noteholders and the Lenders’ Agent agrees that it will not institute against, or join any other
Person in instituting against, SPV any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings or other similar proceeding under the laws of the United States or any
state of the United States or any other jurisdiction;

               (v) Prior to the date that is one year and one day after the Facility Termination Date,
neither any Noteholder nor the Lenders’ Agent nor any Lender shall object to or contest in any
administrative, legal or equitable action or proceeding (including, without limitation, any
insolvency, bankruptcy, receivership, liquidation, reorganization, winding up, readjustment,
composition or other similar proceeding relating to any Originator (as defined in the Purchase
Agreement) or SPV or their respective property) or object to or contest in any other manner (1) the
interests of SPV and its successors and assigns in any of the assets transferred (or purported to
be transferred) by any Originator to SPV pursuant to the Transaction Documents and/or (2) the
interests of the Administrative Agent, and/or any of the Securitization Secured Parties in the Pool
Assets or otherwise take any action which would compromise or call into questions the intended
bankruptcy-remote structure of the transactions contemplated by the Purchase Agreement and the
other Transaction Documents. Neither any Noteholder nor the Lenders’ Agent nor any lender shall
object to or contest in any manner the receipt of any payment by the Administrative Agent and/or
any of the Securitization Secured Parties with respect to the Pool Assets in accordance with the
terms of the Transaction Documents for the satisfaction of the Receivables Obligations.

          (c) The provisions of this Section __ shall continue to be effective or be reinstated, as the
case may be, if at any time any payment of the Receivables Obligations is rescinded or must
otherwise be returned by the Administrative Agent or any of the lenders upon the insolvency,
bankruptcy or reorganization of any Originator, the Performance Guarantor or SPV or otherwise, all
as though such payment had not been made.

          (b) The Administrative Agent for the ratable benefit of the Securitization Secured Parties
shall be a third-party beneficiary with respect to this Section ___.

Receivables Sale Agreement

9

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