Document:

Exhibit 4.12

 

EXECUTION COPY

 

STEEL DYNAMICS, INC.

 

AND THE GUARANTORS NAMED HEREIN

 

$350,000,000

7 5/8% Senior Notes due 2020

PURCHASE AGREEMENT

dated March 11, 2010

 

Banc of America Securities
LLC

Goldman, Sachs &
Co.       

J.P. Morgan Securities Inc.

Morgan Stanley & Co. Incorporated

 

 

PURCHASE AGREEMENT

 

March 11, 2010

 

Banc
of America Securities LLC

Goldman,
Sachs & Co.

J.P.
Morgan Securities Inc.

Morgan
Stanley & Co. Incorporated

 

c/o
Banc of America Securities LLC

One
Bryant Park

New
York, NY 10036

 

Ladies and Gentlemen:

 

Introductory.  Steel
Dynamics, Inc., an Indiana corporation (the “Company”), proposes to issue
and sell to the several Initial Purchasers named in Schedule I (the “Initial
Purchasers”), acting severally and not jointly, the respective amounts set
forth in such Schedule I of $350,000,000 aggregate principal amount of the
Company’s 7 5/8% Senior Notes due 2020 (the “Notes”).

 

The Securities (as defined below) will be issued
pursuant to an indenture to be dated as of the Closing Date (the “Indenture”),
among the Company, the Guarantors (as defined below) and Wells Fargo Bank,
National Association, as trustee (the “Trustee”).  Notes will be issued only in book-entry form
in the name of Cede & Co., as nominee of The Depository Trust Company (the
“Depositary”) pursuant to a letter of representations, to be dated on or before
the Closing Date (as defined in Section 2 hereof) (the “DTC Agreement”),
among the Company, the Guarantors, the Trustee and the Depositary.

 

The holders of the Notes will be entitled to the
benefits of a registration rights agreement, to be dated as of the Closing Date
(the “Registration Rights Agreement”), among the Company, the Guarantors and
the Initial Purchasers, pursuant to which the Company and the Guarantors will
agree to file with the Commission (as defined below), under the circumstances
set forth therein, (i) a registration statement under the Securities Act
(as defined below) relating to another series of debt securities of the Company
with terms substantially identical to the Notes (the “Exchange Notes”) to be
offered in exchange for the Notes (the “Exchange Offer”) and (ii) to the
extent required by the Registration Rights Agreement, a shelf registration statement
pursuant to Rule 415 of the Securities Act relating to the resale by
certain holders of the Notes, and in each case, to use its reasonable best
efforts to cause any applicable registration statement to be declared
effective.

 

The obligations of the Company under the Notes, the
Exchange Notes and the Indenture will be unconditionally guaranteed on a senior
unsecured basis, jointly and severally by (i) the Guarantors named in
Schedule II and (ii) any other subsidiary of the Company that
executes an additional guarantee in accordance with the terms of the Indenture,
and their respective successors and assigns (collectively, the “Guarantors”),
pursuant to the terms of the Indenture (each a, “Guarantee” and, collectively, the “Guarantees”).  The Notes and
the Guarantees thereof are herein collectively referred to as the “Securities”;
and the Exchange Notes and the Guarantees are herein collectively referred to
as the “Exchange Securities.”

 

2

 

The Company understands that the Initial Purchasers
propose to make an offering of the Securities on the terms and in the manner
set forth herein and in the Pricing Disclosure Package (as defined below) and
agrees that the Initial Purchasers may resell, subject to the conditions set
forth herein, all or a portion of the Securities to purchasers (the “Subsequent
Purchasers”) on the terms set forth in the Pricing Disclosure Package (the
first time when sales of the Securities are made is referred to as the “Time of
Sale”).  The Securities are to be offered
and sold to or through the Initial Purchasers without being registered with the
Securities and Exchange Commission (the “Commission”) under the Securities Act
of 1933 (as amended, the “Securities Act,” which term, as used herein, includes
the rules and regulations of the Commission promulgated thereunder), in
reliance upon exemptions therefrom. 
Pursuant to the terms of the Securities and the Indenture, investors who
acquire Securities shall be deemed to have agreed that Securities may only be
resold or otherwise transferred, after the date hereof, if such Securities are
registered for sale under the Securities Act or if an exemption from the
registration requirements of the Securities Act is available (including the
exemptions afforded by Rule 144A under the Securities Act (“Rule 144A”)
or Regulation S under the Securities Act (“Regulation S”)).

 

The Company has prepared and delivered to each
Initial Purchaser copies of a Preliminary Offering Memorandum, dated March 11,
2010 (the “Preliminary Offering Memorandum”), and has prepared and delivered to
each Initial Purchaser copies of a Pricing Supplement attached hereto as
Schedule IV, dated March 11, 2010 (the “Pricing Supplement”),
describing the terms of the Securities, each for use by such Initial Purchaser
in connection with its solicitation of offers to purchase the Securities.  The Preliminary Offering Memorandum and the
Pricing Supplement are herein referred to as the “Pricing Disclosure Package.”  Promptly after this Agreement is executed and
delivered, the Company will prepare and deliver to each Initial Purchaser a
final offering memorandum dated the date hereof (the “Final Offering Memorandum”).

 

All references herein to the terms “Pricing
Disclosure Package” and “Final Offering Memorandum” shall be deemed to mean and
include all information filed under the Securities Exchange Act of 1934 (as
amended, the “Exchange Act,” which term, as used herein, includes the rules and
regulations of the Commission promulgated thereunder) prior to the Time of Sale
and incorporated by reference in the Pricing Disclosure Package (including the
Preliminary Offering Memorandum) or the Final Offering Memorandum (as the case
may be), and all references herein to the terms “amend,” “amendment” or “supplement”
with respect to the Final Offering Memorandum shall be deemed to mean and
include all information filed under the Exchange Act after the Time of Sale and
incorporated by reference in the Final Offering Memorandum as of its date.

 

Each of the Company and the
Guarantors hereby confirms its agreements with the Initial Purchasers as
follows:

 

SECTION 1.            Representations and
Warranties.  Each of the
Company and the Guarantors, jointly and severally, hereby represents, warrants
and covenants to each Initial Purchaser that, as of the date hereof and as of
the Closing Date (references in this Section 1 to the “Offering Memorandum”
are to (x) the Pricing Disclosure Package in the case of representations
and warranties made as of the date hereof and (y) each of the Pricing
Disclosure Package and the Final Offering Memorandum in the case of
representations and warranties made as of the Closing Date):

 

3

 

(a)           No Registration Required.  Subject to compliance by the Initial
Purchasers with the representations and warranties set forth in Section 2
hereof and with the procedures set forth in Section 8 hereof, it is not
necessary in connection with the offer, sale and delivery of the Securities to
the Initial Purchasers and to each Subsequent Purchaser in the manner
contemplated by this Agreement and the Offering Memorandum to register the
Securities under the Securities Act or, until such time as the Exchange
Securities may be issued pursuant to an effective registration statement, to
qualify the Indenture under the Trust Indenture Act of 1939 (the “Trust
Indenture Act,” which term, as used herein, includes the rules and
regulations of the Commission promulgated thereunder).

 

(b)           No Integration of
Offerings or General Solicitation. 
None of the Company, its affiliates (as such term is defined in Rule 501
under the Securities Act) (each, an “Affiliate”), or any person acting on its
or any of their behalf (other than the Initial Purchasers, as to whom the
Company makes no representation or warranty) has, directly or indirectly,
solicited any offer to buy or offered to sell, or will, directly or indirectly,
solicit any offer to buy or offer to sell, in the United States or to any
United States citizen or resident, any security which is or would be integrated
with the sale of the Securities in a manner that would require the Securities
to be registered under the Securities Act. 
None of the Company, its Affiliates, or any person acting on its or any
of their behalf (other than the Initial Purchasers, as to whom the Company
makes no representation or warranty) has engaged or will engage, in connection
with the offering of the Securities, in any form of general solicitation or
general advertising within the meaning of Rule 502 under the Securities
Act.  With respect to those Securities
sold in reliance upon Regulation S, (i) none of the Company, its
Affiliates or any person acting on its or their behalf (other than the Initial
Purchasers, as to whom the Company makes no representation or warranty) has
engaged or will engage in any directed selling efforts within the meaning of
Regulation S and (ii) each of the Company and its Affiliates and any
person acting on its or their behalf (other than the Initial Purchasers, as to
whom the Company makes no representation or warranty) has complied and will
comply with the offering restrictions set forth in Regulation S.

 

(c)           Eligibility for Resale
under Rule 144A.  The
Securities are eligible for resale pursuant to Rule 144A and will not be,
at the Closing Date, of the same class as securities listed on a national
securities exchange registered under Section 6 of the Exchange Act or
quoted in a U.S. automated interdealer quotation system.

 

(d)           The Offering Memorandum.  Neither the Pricing Disclosure Package, as of
the Time of Sale, nor the Final Offering Memorandum, as of its date or (as
amended or supplemented in accordance with Section 3(a), if applicable) as
of the Closing Date, contains or represents an untrue statement of a material
fact or omits to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided that this representation, warranty and agreement
shall not apply to statements in or omissions from the Pricing Disclosure
Package, the Final Offering Memorandum or any amendment or supplement thereto
made in reliance upon and in conformity with information furnished to the
Company in writing by any Initial Purchaser through Banc of America Securities
LLC expressly for use in the Pricing Disclosure Package, the Final Offering
Memorandum or amendment or supplement thereto, as the case may be.  The Pricing Disclosure Package contains, and
the Final Offering Memorandum will contain, all the information specified in,
and meeting the requirements of, Rule 144A.  Each Company Supplemental Disclosure Document
(as defined in Section 4(a) below) listed on Schedule V hereto
does not conflict with the information contained in the Pricing Disclosure
Package or the Final Offering Memorandum, 

 

4

 

and each such Company Supplemental Disclosure
Document, as supplemented by and taken together with the Pricing Disclosure
Package as of the Time of Sale, did not include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided, however, that this representation and warranty
shall not apply to statements in or omissions made in any Company Supplemental
Disclosure Document in reliance upon and in conformity with information
furnished to the Company in writing by any Initial Purchaser through Banc of
America Securities LLC expressly for use therein.  The Company has not distributed and will not
distribute, prior to the later of the Closing Date and the completion of the
Initial Purchasers’ distribution of the Securities, any offering material in
connection with the offering and sale of the Securities other than the Pricing
Disclosure Package and the Final Offering Memorandum.

 

(e)           Incorporated Documents.  The documents incorporated or deemed to be
incorporated by reference in the Offering Memorandum at the time they were or
hereafter are filed with the Commission (collectively, the “Incorporated
Documents”) complied and will comply in all material respects with the
requirements of the Exchange Act.

 

(f)            The Purchase Agreement.  This Agreement has been duly authorized,
executed and delivered by the Company and the Guarantors.

 

(g)           The Registration Rights
Agreement.  The Registration
Rights Agreement has been duly authorized, executed and delivered by, and is a
valid and binding agreement of, the Company and each Guarantor, enforceable
against the Company and the Guarantors in accordance with its terms, subject to
applicable bankruptcy, insolvency or similar laws affecting creditors’ rights
generally and general principles of equity and except as rights to
indemnification and contribution under the Registration Rights Agreement may be
limited under applicable law.

 

(h)           The Notes.  The Notes have been duly authorized and, at
the Closing Date, will have been duly executed by the Company and, when
authenticated in accordance with the provisions of the Indenture and delivered
to and paid for by the Initial Purchasers in accordance with the terms of this
Agreement, will be valid and binding obligations of the Company, enforceable
against the Company  in accordance with
their terms, subject to applicable 
bankruptcy, insolvency or similar laws affecting creditors’ rights
generally and general principles of equity, and will be entitled to the
benefits of the Indenture and the Registration Rights Agreement.

 

(i)            The Guarantee.  The Guarantee by each Guarantor pursuant to
the terms of the Indenture has been duly authorized and, when the Notes and the
Exchange Notes have been authenticated in the manner provided for in the
Indenture and delivered against payment of the purchase price therefor, will be
a valid and binding obligation of the Guarantor, enforceable against the
Guarantors in accordance with its terms, subject to applicable bankruptcy,
insolvency or similar laws affecting creditors’ rights generally and general
principles of equity.

 

(j)            Authorization of the
Exchange Notes.  The Exchange
Notes have been duly and validly authorized for issuance by the Company, and
when issued and authenticated in accordance with the terms of the Indenture,
the Registration Rights Agreement and the Exchange Offer, will constitute valid
and binding obligations of the Company, enforceable against the Company in
accordance with their terms, subject to applicable bankruptcy, insolvency or
similar laws 

 

5

 

affecting creditors’ rights generally and
general principles of equity and will be entitled to the benefits of the
Indenture.

 

(k)           Authorization of the
Indenture.  The Indenture has
been duly authorized by the Company and the Guarantors and, at the Closing
Date, will have been duly executed and delivered by the Company and each
Guarantor and will constitute a valid and binding agreement of the Company and
the Guarantors, enforceable against the Company and the Guarantors in
accordance with its terms, subject to applicable bankruptcy, insolvency or similar
laws affecting creditors’ rights generally and general principles of equity.

 

(l)            Description of the
Securities and the Indenture. 
The Securities, the Exchange Securities and the Indenture will conform
in all material respects to the respective descriptions thereof  contained in the Offering Memorandum under
the heading “Description of the Notes.”

 

(m)          No Material Adverse Change.  There has not occurred any material adverse
change, or any development involving a prospective material adverse change, in the
condition, financial or otherwise, or in the earnings, business or operations
of the Company and its subsidiaries, taken as a whole, from that set forth in
the Offering Memorandum (exclusive of any amendments or supplements thereto
subsequent to the date of this Agreement).

 

(n)           Other Transactions.  Subsequent to the respective dates as of
which information is given in the Offering Memorandum, (1) the Company and
its subsidiaries have not incurred any material liability or obligation, direct
or contingent, nor entered into any material transaction not in the ordinary
course of business; (2) the Company has not purchased any of its
outstanding capital stock, nor declared, paid or otherwise made any dividend or
distribution of any kind on its capital stock; and (3) there has not been
any material change in the capital stock, short-term debt or long-term debt of
the Company and its consolidated subsidiaries, except in each case as described
in or contemplated by the Offering Memorandum.

 

(o)           Independent Accountants.  Ernst & Young LLP, which expressed
its opinion with respect to the financial statements (which term as used in
this Agreement includes the related notes thereto) filed with the Commission
and incorporated by reference in the Offering Memorandum, are independent
public or certified public accountants within the meaning of Regulation S-X
under the Securities Act and the Exchange Act, and any non-audit services
provided by Ernst & Young LLP to the Company or any of the Guarantors
have been approved by the Audit Committee of the Board of Directors of the
Company.

 

(p)           Incorporation
and Good Standing of the Company and its Subsidiaries.  The Company has been duly incorporated, is
validly existing as a corporation in good standing under the laws of the jurisdiction
of its incorporation, has the corporate power and authority to own its property
and to conduct its business as described in the Offering Memorandum and to
enter into and perform its obligations under this Agreement, the Registration
Rights Agreement, the Indenture, the Securities and the Exchange Securities;
the Company is duly qualified to transact business and is in good standing in
each jurisdiction in which the conduct of its business or its ownership or
leasing of property requires such qualification, except to the extent that the
failure to be so qualified or be in good standing would not, individually or in
the aggregate, result in a material adverse effect on the condition, financial
or otherwise, or on the earnings, business, properties, operations or
prospects, whether or not arising from transactions in the ordinary course of
business, of the Company and its subsidiaries, considered as one entity (a “Material
Adverse Effect”).

 

6

 

Each subsidiary of the Company has been duly
incorporated or organized, is validly existing as a corporation or limited
liability company, as applicable, in good standing under the laws of the
jurisdiction of its incorporation or organization, as applicable, has the power
and authority to own its property and to conduct its business as described in
the Offering Memorandum and each Guarantor has the power and authority to enter
into and perform is obligations under this Agreement, the Registration Rights
Agreement, the Indenture, the Securities and the Exchange Securities; each
subsidiary is duly qualified to transact business and is in good standing in
each jurisdiction in which the conduct of its business or its ownership or
leasing of property requires such qualification, except to the extent that the
failure to be so qualified or be in good standing would not have a Material
Adverse Effect; each direct or indirect subsidiary of the Company and the
percentage of capital stock and voting stock of each such subsidiary owned by
the Company directly or indirectly, as applicable, is set forth on Schedule III
hereto and all of the issued shares of capital stock of such subsidiary have
been duly and validly authorized and issued, are fully paid and non-assessable
and are owned directly by the Company, free and clear of all liens,
encumbrances, equities or claims, except as described in the Offering Memorandum.

 

(q)           Non-Contravention of
Existing Instruments; No Further Authorizations or Approvals Required.  Neither the Company nor any of its
subsidiaries is in violation of its articles of incorporation, by-laws or other
organizational documents or in default in the performance or observance of any
obligation, agreement, covenant or condition contained in any contract, indenture,
mortgage, deed of trust, loan or credit agreement, note, lease or other
agreement or instrument to which the Company or any of its subsidiaries is a
party or by which it or any of them may be bound, or to which any of the
property or assets of the Company or any subsidiary is subject except for such
defaults that would not result in a Material Adverse Effect.  The execution and delivery by the Company and
the Guarantors of, and the performance by the Company and the Guarantors of
their respective obligations under, this Agreement, the Indenture, the Registration
Rights Agreement, the Securities and the Exchange Securities, and the
consummation of the transactions described herein and therein and in the
Offering Memorandum, do not and will not, whether with or without the giving of
notice or passage of time or both, contravene any provision of applicable law
or the articles of incorporation, by-laws or other organizational documents of
the Company or any of its subsidiaries or any agreement or other instrument
binding upon the Company or any of its subsidiaries that is material to the Company
and its subsidiaries, taken as a whole (including, but not limited to, the Amended and Restated Credit Agreement, dated
as of June 19, 2007, as amended from time to time, among Steel Dynamics, Inc.,
as borrower, certain designated “Initial Lenders,” National City Bank, as
Collateral Agent, National City Bank and Wells Fargo, National Association, as
Co-Administrative Agents, Bank of America, N.A. and National City Bank, as
Syndication Agents, National City Bank, as Paying Agent, Bank of America, N.A.,
General Electric Capital Corporation, Fifth Third Bank and BMO Capital Markets
Financing, Inc., as Documentation Agents, and Banc of America Securities
LLC and National City Bank, as Joint Lead Arrangers, and the lenders from time
to time party thereto, (the “Credit Agreement”)), or any judgment, order,
regulation or decree of any regulatory or governmental body, agency or court
having jurisdiction over the Company or any subsidiary, and no consent,
approval, authorization or order of, or qualification with, any regulatory or
governmental body or agency is required for the performance by the Company or
the Guarantors of their respective obligations under this Agreement, the Indenture,
the Registration Rights Agreement, the Securities and the Exchange Securities
and the Guarantees, except such as may be required by the securities or Blue
Sky laws of the various states in connection with the offer and sale of the
Securities and by Federal and state securities laws with respect to the Company’s
and the Guarantors’ obligations under the Registration Rights Agreement.

 

7

 

(r)            No Material Actions or
Proceedings.  There are no
legal or governmental proceedings pending or threatened to which the Company or
any of its subsidiaries is a party or to which any of the properties of the
Company or any of its subsidiaries is subject other than proceedings accurately
described in all material respects in the Offering Memorandum and proceedings
that would not have a Material Adverse Effect, or a material adverse effect on
the power or ability of the Company or the Guarantors to perform their
respective obligations under this Agreement, the Indenture, the Registration
Rights Agreement, the Securities and the Exchange Securities or to consummate
the transactions contemplated by the Offering Memorandum.

 

(s)           Intellectual Property
Rights.  The Company and its
subsidiaries own or possess, or can acquire on reasonable terms, all material
patents, patent rights, licenses, inventions, copyrights, know-how (including
trade secrets and other unpatented and/or unpatentable proprietary or
confidential information, systems or procedures), trademarks, service marks and
trade names currently employed by them in connection with the business now
operated by them, and neither the Company nor any of its subsidiaries has
received any notice of infringement of or conflict with asserted rights of
others with respect to any of the foregoing which, singly or in the aggregate,
if the subject of an unfavorable decision, ruling or finding, would result in
any Material Adverse Effect.

 

(t)            All Necessary Permits, etc.  Each of the Company and its subsidiaries has
all necessary consents, authorizations, approvals, orders, certificates and
permits of and from, and has made all declarations and filings with, all
federal, state, local and other governmental authorities, all self-regulatory
organizations and all courts and other tribunals, to own, lease, license and
use its properties and assets and to conduct its business in the manner
described in the Offering Memorandum, except the necessary operating permits
required by the Company’s mining subsidiary, Mesabi Mining, LLC, to allow it to
engage in the mining of taconite ore close to the Company’s Mesabi Nugget
facility in Minnesota, except to the extent that the failure to obtain such
consents, authorizations, approvals, orders, certificates and permits or make
such declarations and filings would not have a Material Adverse Effect.  Neither the Company nor any of its subsidiaries
has received any notice of proceedings relating to the revocation or
modification of any such consent, authorization, approval, order, certificate
or permit which, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding, would result in a Material Adverse Effect, except
as described in or contemplated by the Offering Memorandum.

 

(u)           Title to Properties.  The Company and its subsidiaries have good
and marketable title in fee simple to all real property and good and marketable
title to all personal property owned by them which is material to the business
of the Company and its subsidiaries, in each case free and clear of all liens, encumbrances
and defects except such as are described in the Offering Memorandum or such as
do not materially affect the value of such property and do not interfere with
the use made and proposed to be made of such property by the Company and its
subsidiaries; and any real property and buildings held under lease by the
Company and its subsidiaries are held by them under valid, subsisting and
enforceable leases with such exceptions as are not material and do not
interfere with the use made and proposed to be made of such property and
buildings by the Company and its subsidiaries, in each case except as described
in or contemplated by the Offering Memorandum.

 

(v)           Company Not an “Investment
Company”.  Neither the Company
nor any of the Guarantors is required, or after giving effect to the offering
and sale of the Securities and the application of the proceeds thereof as
described in the Offering Memorandum will be required, to 

 

8

 

register as an “investment company” as such
term is defined in the Investment Company Act of 1940, as amended.

 

(w)          Insurance.  The Company and each of its subsidiaries are
insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as are prudent and customary in the businesses in
which they are engaged; neither the Company nor any such subsidiary has been
refused any insurance coverage sought or applied for; and neither the Company
nor any such subsidiary has any reason to believe that it will not be able to
renew its existing insurance coverage as and when such coverage expires or to
obtain similar coverage from similar insurers as may be necessary to continue
its business at a cost that would not materially and adversely affect the condition,
financial or otherwise, or the earnings, business or operations of the Company
and its subsidiaries, taken as a whole, except as described in or contemplated
by the Offering Memorandum.

 

(x)            No Price Stabilization or
Manipulation.  None of the
Company or any of the Guarantors has taken or will take, directly or indirectly,
any action designed to or that might be reasonably expected to cause or result
in stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Securities.

 

(y)           Company’s Accounting
System.  The Company and each
of its subsidiaries maintain a system of internal accounting controls
sufficient to provide reasonable assurance that (1) transactions are
executed in accordance with management’s general or specific authorizations; (2) transactions
are recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles and to maintain asset
accountability; (3) access to assets is permitted only in accordance with
management’s general or specific authorization; and (4) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.  Since the end
of the Company’s most recent audited fiscal year, there has been (i) no
material weakness in the Company’s internal control over financial reporting
(whether or not remediated) and (ii) no change in the Company’s internal
control over financial reporting that has materially affected, or is reasonably
likely to materially affect, the Company’s internal control over financial
reporting

 

(z)            Disclosure Controls and
Procedures.  The Company has
established and maintains disclosure controls and procedures (as such term is
defined in Rules 13a-15 and 15d-14 under the Exchange Act); such
disclosure controls and procedures are designed to ensure that material
information relating to the Company and its subsidiaries is made known to the
chief executive officer and chief financial officer of the Company by others
within the Company or any of its subsidiaries, and such disclosure controls and
procedures are reasonably effective to perform the functions for which they
were established subject to the limitations of any such control system; the
Company’s auditors and the Audit Committee of the Board of Directors of the Company
have been advised of:  (i) any
significant deficiencies or material weaknesses in the design or operation of
internal controls which could adversely affect the Company’s ability to record,
process, summarize, and report financial data; and (ii) any fraud, whether
or not material, that involves management or other employees who have a role in
the Company’s internal controls; and since the date of the most recent
evaluation of such disclosure controls and procedures, there have been no
significant changes in internal controls or in other factors that could
significantly affect internal controls, including any corrective actions with
regard to significant deficiencies and material weaknesses.

 

9

 

(aa)                            Compliance
with Environmental Laws.  The
Company and its subsidiaries (i) are in compliance with any and all
applicable foreign, federal, state and local laws and regulations relating to
the protection of human health and safety, the environment or hazardous or
toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have
received all permits, licenses or other approvals required of them under
applicable Environmental Laws to conduct their respective businesses, except
the necessary operating permits required by the Company’s mining subsidiary,
Mesabi Mining, LLC, to allow it to engage in the mining of taconite ore close
to the Company’s Mesabi Nugget facility in Minnesota, and (iii) are in
compliance with all terms and conditions of any such permit, license or
approval, except where such noncompliance with Environmental Laws, failure to
receive required permits, licenses or other approvals or failure to comply with
the terms and conditions of such permits, licenses or approvals would not,
singly or in the aggregate, result in any Material Adverse Effect.

 

(bb)                          Periodic
Review of Costs of Environmental Compliance.  In the ordinary course of business, the
Company conducts a periodic review of the effect of Environmental Laws on the
business, operations and properties of the Company and its subsidiaries, in the
course of which it identifies and evaluates associated costs and liabilities
(including, without limitation, any capital or operating expenditures required
for clean-up, closure of properties or compliance with Environmental Laws or
any permit, license or approval, any related constraints on operating
activities and any potential liabilities to third parties).  On the basis of such review, the Company has
reasonably concluded that such associated costs and liabilities for its current
operations would not, singly or in the aggregate, have a Material Adverse
Effect.

 

(cc)                            No
Material Labor Dispute.  No
material labor dispute with the employees of the Company or any of its subsidiaries
exists, except as described in or contemplated by the Offering Memorandum, or,
to the knowledge of the Company, is imminent; and the Company is not aware of
any existing, threatened or imminent labor disturbance by the employees of any
of its principal suppliers, manufacturers or contractors that could result in
any Material Adverse Effect.

 

(dd)                          Regulation
S.  The Company, the Guarantors
and their respective affiliates and all persons acting on their behalf (other
than the Initial Purchasers, as to whom the Company and the Guarantors make no
representation) have complied with and will comply with the offering restrictions
requirements of Regulation S in connection with the offering of the Securities
outside the United States and, in connection therewith, the Offering Memorandum
will contain the disclosure required by Rule 902.  The Securities sold in reliance on Regulation
S will be represented upon issuance by a temporary global security that may not
be exchanged for definitive securities until the expiration of the 40-day
restricted period referred to in Rule 903 of the Securities Act and only
upon certification of beneficial ownership of such Securities by non-U.S. persons
or U.S. persons who purchased such Securities in transactions that were exempt
from the registration requirements of the Securities Act.

 

(ee)                            Preparation
of the Financial Statements.  The financial statements, together with the
related schedules and notes, included or incorporated by reference in the
Offering Memorandum present fairly the consolidated financial position of the
entities to which they relate as of and at the dates indicated and the results
of their operations and cash flows for the periods specified.  Such financial statements have been prepared
in conformity with generally accepted accounting principles (“GAAP”) applied on
a consistent basis throughout the periods involved, except as may be expressly
stated in the related notes thereto.  The
supporting schedules, if any, present fairly in accordance with GAAP the information
required to be stated therein.  The summary

 

10

 

financial information included in the
Offering Memorandum presents fairly the information shown therein and has been
compiled on a basis consistent with that of the audited financial statements
incorporated by reference in the Offering Memorandum.  All
disclosures contained in the Offering Memorandum regarding “non-GAAP financial
measures” (as such term is defined by the rules and regulations of the
Commission) comply with Regulation G under the Exchange Act and Item 10 of
Regulation S-K of the Securities Act, to the extent applicable.

 

(ff)                                Solvency.  Each of the Company and the Guarantors is,
and immediately after the Closing Date will be, Solvent.  As used herein, the term “Solvent” means,
with respect to any person on a particular date, that on such date (i) the
fair market value of the assets (including any rights to contribution) of such
person is greater than the total amount of liabilities (including contingent
liabilities) of such person, (ii) the present fair salable value of the
assets of such person is greater than the amount that will be required to pay
the probable liabilities of such person on its debts as they become absolute
and matured, (iii) such person is able to realize upon its assets and pay
its debts and other liabilities, including contingent obligations, as they
mature and (iv) such person does not have unreasonably small capital.

 

(gg)                          Compliance
with Sarbanes-Oxley.  The Company
and its subsidiaries and their respective officers and directors are in
compliance with the applicable provisions of the Sarbanes-Oxley Act of 2002
(the “Sarbanes-Oxley Act,” which term, as used herein, includes the rules and
regulations of the Commission promulgated thereunder).

 

(hh)                          ERISA
Compliance.  The Company
and its subsidiaries and any “employee benefit plan” (as defined under the
Employee Retirement Income Security Act of 1974 (as amended, “ERISA,” which
term, as used herein, includes the regulations and published interpretations
thereunder) established or maintained by the Company, its subsidiaries or their
ERISA Affiliates (as defined below) are in compliance in all material respects
with ERISA.  “ERISA Affiliate” means,
with respect to the Company or a subsidiary, any member of any group of organizations
described in Section 414 of the Internal Revenue Code of 1986 (as amended,
the “Code,” which term, as used herein, includes the regulations and published
interpretations thereunder) of which the Company or such subsidiary is a
member.  No “reportable event” (as
defined under ERISA) has occurred or is reasonably expected to occur with
respect to any “employee benefit plan” established or maintained by the
Company, its subsidiaries or any of their ERISA Affiliates.  No “employee benefit plan” established or
maintained by the Company, its subsidiaries or any of their ERISA Affiliates,
if such “employee benefit plan” were terminated, would have any “amount of
unfunded benefit liabilities” (as defined under ERISA).  Neither the Company, its subsidiaries nor any
of their ERISA Affiliates has incurred or reasonably expects to incur any
liability under (i) Title IV of ERISA with respect to termination of, or
withdrawal from, any “employee benefit plan” or (ii) Sections 412,
4971, 4975 or 4980B of the Code.  Each “employee
benefit plan” established or maintained by the Company, its subsidiaries or any
of their ERISA Affiliates that is intended to be qualified under Section 401
of the Code is so qualified and nothing has occurred, whether by action or
failure to act, which would cause the loss of such qualification.

 

(ii)                                  Related
Party Transactions.  No
relationship, direct or indirect, exists between or among any of the Company or
any affiliate of the Company, on the one hand, and any director, officer,
member, stockholder, customer or supplier of the Company or any affiliate of
the Company, on the other hand, which is required by the Securities Act to be
disclosed in a registration statement on Form S-1 which is not so disclosed
in the Offering Memorandum.  There are no

 

11

 

outstanding loans, advances (except advances
for business expenses in the ordinary course of business) or guarantees of
indebtedness by the Company or any affiliate of the Company to or for the
benefit of any of the officers or directors of the Company or any affiliate of
the Company or any of their respective family members.

 

(jj)                                  No
Unlawful Contributions or Other Payments.  Neither the Company nor any of its
subsidiaries nor, to the best of the Company’s knowledge, any employee or agent
of the Company or any subsidiary, has made any contribution or other payment to
any official of, or candidate for, any federal, state or foreign office in
violation of any law or of the character necessary to be disclosed in the
Offering Memorandum in order to make the statements therein not misleading.

 

(kk)                            Money
Laundering Laws.  The
operations of the Company and its subsidiaries are and have been conducted at
all times in compliance with applicable financial recordkeeping and reporting requirements
of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the
money laundering statutes of all jurisdictions, the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued,
administered or enforced by any governmental agency (collectively, the “Money
Laundering Laws” and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company
or any of its subsidiaries with respect to the Money Laundering Laws is pending
or, to the best knowledge of the Company, threatened.

 

(ll)                                  OFAC.  Neither the Company nor any of its
subsidiaries nor, to the knowledge of the Company, any director, officer,
agent, employee, affiliate or person acting on behalf of the Company or any of
its subsidiaries is currently subject to any U.S. sanctions administered by the
Office of Foreign Assets Control of the U.S. Treasure Department (“OFAC”); and
the Company will not directly or indirectly use the proceeds of the offering,
or lend, contribute or otherwise make available such proceeds to any
subsidiary, joint venture partner or other person or entity, for the purpose of
financing the activities of any person currently subject to any U.S. sanctions
administered by OFAC.

 

Any certificate signed by an officer of the Company
or any Guarantor and delivered to the Initial Purchasers or to counsel for the
Initial Purchasers shall be deemed to be a representation and warranty by the
Company or such Guarantor to each Initial Purchaser as to the matters set forth
therein.

 

SECTION 2.                                     Purchase,
Sale and Delivery of the Securities.

 

(a)                                  The
Securities.  Each of the
Company and the Guarantors agrees to issue and sell to the Initial Purchasers,
severally and not jointly, all of the Securities, and the Initial Purchasers
agree, severally and not jointly, to purchase from the Company and the
Guarantors the $350,000,000 in aggregate principal amount of Securities set
forth opposite their names on Schedule I, at a purchase price of 98.25% of
the principal amount thereof payable on the Closing Date, in each case, on the
basis of the representations, warranties and agreements herein contained, and
upon the terms, subject to the conditions thereto, herein set forth.

 

(b)                                 The
Closing Date.  Delivery of
certificates for the Securities in definitive form to be purchased by the
Initial Purchasers and payment therefor shall be made at the offices of
Shearman & Sterling LLP, 599 Lexington Avenue, New York, New York
10022 (or such other 

 

12

 

place as may be agreed to by the Company and
the Initial Purchasers) at 9:00 a.m. New York City time, on March 17,
2010, or such other time and date as the Initial Purchasers shall designate by
notice to the Company (the time and date of such closing are called the “Closing
Date”).  The Company hereby acknowledges
that circumstances under which the Initial Purchasers may provide notice to
postpone the Closing Date as originally scheduled include, but are in no way limited
to, any determination by the Company or the Initial Purchasers to recirculate
to investors copies of an amended or supplemented Offering Memorandum or a
delay as contemplated by the provisions of Section 18 hereof.

 

(c)                                  Delivery
of the Securities.  The Company
shall deliver, or cause to be delivered, to Banc of America Securities LLC for
the accounts of the several Initial Purchasers certificates for the Notes at
the Closing Date against the irrevocable release of a wire transfer of immediately
available funds for the amount of the purchase price therefor.  The certificates for the Notes shall be in
such denominations and registered in the name of Cede & Co., as
nominee of the Depositary, pursuant to the DTC Agreement, and shall be made
available for inspection on the business day preceding the Closing Date at a
location in New York City, as the Initial Purchasers may designate.  Time shall be of the essence, and delivery at
the time and place specified in this Agreement is a further condition to the
obligations of the Initial Purchasers.

 

(d)                                 Initial
Purchasers as Qualified Institutional Buyers.  Each Initial Purchaser severally and not
jointly represents and warrants to, and agrees with, the Company that it is a “qualified
institutional buyer” within the meaning of Rule 144A (a “Qualified
Institutional Buyer”).

 

SECTION 3.                                     Additional
Covenants.  Each of the
Company and the Guarantors further jointly and severally covenants and agrees
with each Initial Purchaser as follows:

 

(a)                                  Preparation
of Final Offering Memorandum; Initial Purchasers’ Review of Proposed Amendments
and Supplements.  As promptly
as practicable following the Time of Sale and in any event not later than the
second business day following the date hereof, the Company will prepare and
deliver to the Initial Purchasers the Final Offering Memorandum, which shall
consist of the Preliminary Offering Memorandum as modified only by the information
contained in the Pricing Supplement.  The
Company will not amend or supplement the Preliminary Offering Memorandum or the
Pricing Supplement.  The Company will not
amend or supplement the Final Offering Memorandum prior to the Closing Date
unless the Initial Purchasers shall previously have been furnished a copy of
the proposed amendment or supplement at least two business days prior to the
proposed use or filing, and shall not have objected to such amendment or supplement.

 

(b)                                 Amendments
and Supplements to the Final Offering Memorandum and Other Securities Act
Matters.  If, prior to the later of (x) the
Closing Date and (y) the completion of the placement of the Securities by
the Initial Purchasers with the Subsequent Purchasers, any event shall occur or
condition exist as a result of which it is necessary to amend or supplement the
Final Offering Memorandum (or the Pricing Disclosure Package in the event the
Final Offering Memorandum is not yet available), as then amended or
supplemented, in order to make the statements therein, in the light of the
circumstances when the Final Offering Memorandum  (or the Pricing Disclosure Package in the
event the Final Offering Memorandum is not yet available) is delivered to a
Subsequent Purchaser, not misleading, or if in the judgment of the Initial Purchasers
or counsel for the Initial Purchasers it is otherwise necessary to amend or
supplement the Final Offering Memorandum (or the Pricing Disclosure Package in
the event the Final Offering 

 

13

 

Memorandum is not yet available) to comply
with law, the Company agrees to promptly notify the Initial Purchasers and
promptly prepare (subject to Section 3(a) hereof), and furnish at its
own expense to the Initial Purchasers, amendments or supplements to the Final
Offering Memorandum (or the Pricing Disclosure Package in the event the Final
Offering Memorandum is not yet available) so that the statements in the Final
Offering Memorandum (or the Pricing Disclosure Package in the event the Final
Offering Memorandum is not yet available) as so amended or supplemented will
not, in the light of the circumstances at the Closing Date and at the time of
sale of Securities, be misleading or so that the Final Offering Memorandum (or
the Pricing Disclosure Package in the event the Final Offering Memorandum is
not yet available), as amended or supplemented, will comply with all applicable
law.

 

Following the consummation of the Exchange Offer or
the effectiveness of an applicable shelf registration statement, in each case,
if necessary under the terms of the Registration Rights Agreement, and for so
long as the Securities are outstanding if, in the judgment of the Initial
Purchasers, the Initial Purchasers or any of their affiliates (as such term is
defined in the Securities Act) are required to deliver a prospectus in
connection with sales of, or market-making activities with respect to, the
Securities, to periodically amend the applicable registration statement so that
the information contained therein complies with the requirements of Section 10
of the Securities Act, to amend the applicable registration statement or
supplement the related prospectus or the documents incorporated therein when
necessary to reflect any material changes in the information provided therein
so that the registration statement and the prospectus will not contain any
untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the circumstances
existing as of the date the prospectus is so delivered, not misleading and to
provide the Initial Purchasers with copies of each amendment or supplement
filed and such other documents as the Initial Purchasers may reasonably
request.

 

The Company and the Guarantors hereby expressly
acknowledge that the indemnification and contribution provisions of
Sections 9 and 10 hereof are specifically applicable and relate to each
offering memorandum, registration statement, prospectus, amendment or supplement
referred to in this Section 3.

 

(c)                                  Copies
of the Offering Memorandum.  The Company agrees to furnish the Initial
Purchasers, without charge, as many copies of the Pricing Disclosure Package
and the Final Offering Memorandum and any amendments and supplements thereto as
they shall have reasonably requested.

 

(d)                                 Blue
Sky Compliance.  Each of the
Company and the Guarantors shall cooperate with the Initial Purchasers and
counsel for the Initial Purchasers to qualify or register (or to obtain
exemptions from qualifying or registering) all or any part of the Securities
for offer and sale under the securities laws of the several states of the
United States, the provinces of Canada or any other jurisdictions designated by
the Initial Purchasers, shall comply with such laws and shall continue such
qualifications, registrations and exemptions in effect so long as required for
the distribution of the Securities.  None
of the Company or any of the Guarantors shall be required to qualify as a
foreign corporation or to take any action that would subject it to general
service of process in any such jurisdiction where it is not presently qualified
or where it would be subject to taxation as a foreign corporation.  The Company will advise the Initial
Purchasers promptly of the suspension of the qualification or registration of
(or any such exemption relating to) the Securities for offering, sale or
trading in any jurisdiction or any initiation or threat of any 

 

14

 

proceeding for any such purpose, and in the
event of the issuance of any order suspending such qualification, registration
or exemption, each of the Company and the Guarantors shall use its best efforts
to obtain the withdrawal thereof at the earliest possible moment.

 

(e)                                  Use of
Proceeds.  The Company
shall apply the net proceeds from the sale of the Securities sold by it in the
manner described under the caption “Use of Proceeds” in the Pricing Disclosure
Package.

 

(f)                                    The
Depositary.  The Company
will cooperate with the Initial Purchasers and use its best efforts to permit
the Securities to be eligible for clearance and settlement through the facilities
of the Depositary.

 

(g)                                 Additional
Issuer Information.  Prior to
the completion of the placement of the Securities by the Initial Purchasers
with the Subsequent Purchasers, the Company shall file, on a timely basis, with
the Commission all reports and documents required to be filed under Section 13
or 15 of the Exchange Act.  Additionally,
at any time when the Company is not subject to Section 13 or 15 of the
Exchange Act, for the benefit of holders and beneficial owners from time to
time of the Securities, the Company shall furnish, at its expense, upon
request, to holders and beneficial owners of Securities and prospective
purchasers of Securities information (“Additional Issuer Information”)
satisfying the requirements of Rule 144A(d).

 

(h)                                 Agreement
Not To Offer or Sell Additional Securities.  During the period of 120 days following the
date hereof, the Company will not, without the prior written consent of Banc of
America Securities LLC (which consent may be withheld at the sole discretion of
Banc of America Securities LLC), directly or indirectly, sell, offer, contract
or grant any option to sell, pledge, transfer or establish an open “put equivalent
position” within the meaning of Rule 16a-1 under the Exchange Act, or
otherwise dispose of or transfer, or announce the offering of, or file any
registration statement under the Securities Act in respect of, any debt securities
of the Company, or any securities of the Company convertible or exchangeable
for debt securities (other than as contemplated by this Agreement and to
register the Exchange Securities).

 

(i)                                     Future
Reports to the Initial Purchasers.  At any time when any Securities or Exchange
Securities remain outstanding and the Company is not subject to Section 13
or 15 of the Exchange Act, the Company will furnish to the Initial
Purchasers:  (i) as soon as
practicable after the end of each fiscal year, copies of the Annual Report of
the Company containing the balance sheet of the Company as of the close of such
fiscal year and statements of income, stockholders’ equity and cash flows for
the year then ended and the opinion thereon of the Company’s independent public
or certified public accountants; (ii) as soon as practicable after the
filing thereof, copies of each proxy statement, Annual Report on Form 10-K,
Quarterly Report on Form 10-Q, Current Report on Form 8-K or other
report filed by the Company with the Commission, the Financial Industry
Regulatory Authority (“FINRA”) or any securities exchange; and (iii) as
soon as available, copies of any report or communication of the Company mailed
generally to holders of its capital stock or debt securities (including the
holders of the Securities), if, in each case, such documents are not filed with
the Commission within the time periods specified by the Commission’s rules and
regulations under Section 13 or 15 of the Exchange Act.

 

(j)                                     No
Integration.  The Company
agrees that it will not and will cause its Affiliates not to make any offer or
sale of securities of the Company of any class if, as a result of the doctrine

 

15

 

of “integration” referred to in Rule 502
under the Securities Act, such offer or sale would render invalid (for the
purpose of (i) the sale of the Securities by the Company to the Initial Purchasers,
(ii) the resale of the Securities by the Initial Purchasers to Subsequent
Purchasers or (iii) the resale of the Securities by such Subsequent
Purchasers to others) the exemption from the registration requirements of the
Securities Act provided by Section 4(2) thereof or by Rule 144A
or by Regulation S thereunder or otherwise.

 

(k)                                  No
Restricted Resales.  During the
period of one year after the Closing Date, the Company will not, and will not
permit any of its affiliates (as defined in Rule 144 under the Securities
Act) to resell any of the Notes which constitute “restricted securities” under Rule 144
that have been reacquired by any of them.

 

(l)                                     Legended
Securities.  Each
certificate for a Note will bear the legend contained in “Transfer Restrictions”
in the Preliminary Offering Memorandum for the time period and upon the other
terms stated in the Preliminary Offering Memorandum.

 

The Initial Purchasers may, in their sole
discretion, waive in writing the performance by the Company or any Guarantor of
any one or more of the foregoing covenants or extend the time for their
performance.

 

SECTION 4.                                     Supplemental
Disclosure Documents.

 

(a)                                  The Company
(including its agents and other representatives, other than the Initial
Purchasers in their capacity as such) represents and agrees that, without the
prior consent of the Initial Purchasers, it has not made and will not make,
prepare, use, authorize, approve or refer to any written communication that
constitutes an offer relating to the Securities that, if the offering of the
Securities contemplated by this Agreement were conducted as a public offering
pursuant to a registration statement filed under the Securities Act with the
Commission, would constitute an “issuer free writing prospectus,” as defined in
Rule 433 under the Securities Act (any such offer is hereinafter referred
to as a “Company Supplemental Disclosure Document”).

 

(b)                                 Each Initial
Purchaser represents and agrees that, without the prior consent of the Company
and the other Initial Purchasers, other than one or more term sheets relating
to the Securities containing customary information and conveyed to purchasers
of Securities, it has not made and will not make any offer relating to the
Securities that, if the offering of the Securities contemplated by this
Agreement were conducted as a public offering pursuant to a registration
statement filed under the Securities Act with the Commission, would constitute
a “free writing prospectus,” as defined in Rule 405 under the Securities
Act (any such offer (other than any such term sheets) that would be required to
be filed with the Commission, is hereinafter referred to as a “Purchaser
Supplemental Disclosure Document”).

 

(c)                                  Any Company
Supplemental Disclosure Document or Purchaser Supplemental Disclosure Document
the use of which has been consented to by the Company and the Initial
Purchasers is listed on Schedule V hereto.

 

SECTION 5.                                     Payment
of Expenses.  Each of the
Company and the Guarantors agrees to pay all costs, fees and expenses incurred
in connection with the performance of its obligations hereunder and in
connection with the transactions contemplated hereby, including, without limitation,
(i) all expenses incident to the issuance and delivery of the Securities
(including all printing and engraving costs), (ii) all necessary issue,
transfer and other stamp taxes in connection 

 

16

 

with the issuance and sale of the Securities
to the Initial Purchasers, (iii) all fees and expenses of the Company’s  and the Guarantors’ counsel, independent
public or certified public accountants and other advisors, (iv) all costs
and expenses incurred in connection with the preparation, printing, filing, shipping
and distribution of the Pricing Disclosure Package and the Final Offering
Memorandum (including financial statements and exhibits), and all amendments
and supplements thereto, this Agreement, the Registration Rights Agreement, the
Indenture, the DTC Agreement and the Notes and Guarantees, (v) all filing
fees, attorneys’ fees and expenses incurred by the Company, the Guarantors or
the Initial Purchasers in connection with qualifying or registering (or
obtaining exemptions from the qualification or registration of) all or any part
of the Securities for offer and sale under the securities laws of the several
states of the United States, the 
provinces of Canada or other jurisdictions designated by the Initial
Purchasers (including, without limitation, the cost of preparing, printing and
mailing preliminary and final blue sky or legal investment memoranda and any
related supplements to the Pricing Disclosure Package or the Final Offering
Memorandum), (vi) the fees and expenses of the Trustee, including the fees
and disbursements of counsel for the Trustee in connection with the Indenture,
the Securities and the Exchange Securities, (vii) any fees payable in
connection with the rating of the Securities or the Exchange Securities with
the ratings agencies, (viii) any filing fees incident to, and any
reasonable fees and disbursements of counsel to the Initial Purchasers in
connection with the review by FINRA, if any, of the terms of the sale of the
Securities or the Exchange Securities, (ix) all fees and expenses
(including reasonable fees and expenses of counsel) of the Company and the
Guarantors in connection with approval of the Securities by the Depositary for “book-entry”
transfer, and the performance by the Company and the Guarantors of their
respective other obligations under this Agreement counsel and (x) the
costs and expenses of the Company relating to investor presentations on any “road
show” undertaken in connection with the marketing of the offering of the
Securities, including, without limitation, expenses associated with the
production of road show slides and graphics, fees and expenses of any
consultants engaged in connection with the road show presentations with the
prior approval of the Company, travel and lodging expenses of the
representatives and officers of the Company, the Guarantors and any such
consultants, and the cost of any aircraft chartered in connection with the road
show, and (xi) all other costs and expenses incident to the performance of
the obligations of the Company and the Guarantors hereunder for which provision
is not otherwise made in this Section. 
Except as provided in this Section 5 and Sections 7, 9 and 10
hereof, the Initial Purchasers shall pay their own expenses, including the fees
and disbursements of their counsel.

 

SECTION 6.                                     Conditions
of the Obligations of the Initial Purchasers.  The obligations of the several Initial
Purchasers to purchase and pay for the Securities as provided herein on the Closing
Date shall be subject to the accuracy of the representations and warranties on
the part of the Company and the Guarantors set forth in Section 1 hereof
as of the date hereof and as of the Closing Date as though then made and to the
timely performance by the Company of its covenants and other obligations
hereunder, and to each of the following additional conditions:

 

(a)                                  Accountants’
Comfort Letter.  On the date
hereof, the Initial Purchasers shall have received from Ernst & Young
LLP, independent public or certified public accountants for the Company, a “comfort
letter” dated the date hereof addressed to the Initial Purchasers, in form and
substance satisfactory to the Initial Purchasers, covering the financial
information in the Preliminary Offering Memorandum and other customary
matters.  In addition, on the Closing
Date, the Initial Purchasers shall have received from such accountants, a “bring-down
comfort letter” dated the Closing Date addressed to the Initial Purchasers, in
form and substance satisfactory to the Initial Purchasers, in the form of the “comfort
letter” delivered on the date hereof, except that 

 

17

 

(i) it shall cover the financial
information in the Final Offering Memorandum and any amendment or supplement
thereto and (ii) procedures shall be brought down to a date no more than 5
days prior to the Closing Date.

 

(b)                                 No
Material Adverse Change or Ratings Agency Change.  For the period from and after the date of
this Agreement and prior to the Closing Date:

 

(i)                                     in the judgment
of the Initial Purchasers there shall not have occurred any material adverse
change in the condition, financial or otherwise, or in the earnings, business
affairs or business prospects of the Company and its subsidiaries, considered
as one enterprise, whether or not arising in the ordinary course of business (a
“Material Adverse Change”); and

 

(ii)                                  there shall not
have occurred any downgrading, nor shall any notice have been given of any
intended or potential downgrading or of any review for a possible change that
does not indicate the direction of the possible change, in the rating accorded
any securities or indebtedness of the Company or any of its subsidiaries by any
“nationally recognized statistical rating organization” as such term is defined
for purposes of Rule 436 under the Securities Act.

 

(c)                                  Opinion
of Counsel for the Company.  On the Closing Date the Initial Purchasers
shall have received the favorable opinion, dated as of such Closing Date, of (1) Barrett &
McNagny LLP, counsel for the Company and the Guarantors, the form of which is
attached as Exhibit A-1, (2) Greenberg Traurig, LLP, in its capacity
as Virginia counsel for certain Guarantors, the form of which is attached as Exhibit A-2,
(3) Greenberg Traurig, LLP, in its capacity as New York counsel for the
Company and the Guarantors, the form of which is attached as Exhibit A-3
and (4) Wyche, Burgess, Freeman & Parham, P.A., in its capacity
as North Carolina and South Carolina counsel for certain Guarantors, the form
of which is attached as Exhibit A-4.

 

(d)                                 Opinion
of Counsel for the Initial Purchasers.  On the Closing Date the Initial Purchasers
shall have received the favorable opinion of Shearman & Sterling LLP,
counsel for the Initial Purchasers, dated as of such Closing Date, with respect
to such matters as may be reasonably requested by the Initial Purchasers.

 

(e)                                  Officers’
Certificate.  On the
Closing Date the Initial Purchasers shall have received a written certificate
executed by the Chief Executive Officer or President of the Company and the
Chief Financial Officer or Chief Accounting Officer of the Company and by the
Secretary of each Guarantor, dated as of the Closing Date, to the effect set
forth in Section 6(b)(ii) hereof, and further to the effect that:

 

(i)                                     for the period
from and after the date of this Agreement and prior to the Closing Date there
has not occurred any Material Adverse Change;

 

(ii)                                  the
representations, warranties and covenants of the Company set forth in Section 1
hereof were true and correct as of the Time of Sale and are true and correct as
of the Closing Date with the same force and effect as though expressly made on
and as of the Closing Date; and

 

(iii)                               it has complied
with all the agreements and satisfied all the conditions on its part to be
performed or satisfied at or prior to the Closing Date.

 

18

 

(f)                                    Registration
Rights Agreement.  The Company
shall have entered into the Registration Rights Agreement and the Initial
Purchasers shall have received executed counterparts thereof.

 

(g)                                 Additional
Documents.  On or
before the Closing Date, the Initial Purchasers and counsel for the Initial
Purchasers shall have received such information, documents and opinions as they
may reasonably require for the purposes of enabling them to pass upon the issuance
and sale of the Securities as contemplated herein, or in order to evidence the
accuracy of any of the representations and warranties, or the satisfaction of
any of the conditions or agreements, herein contained.

 

If any condition specified in this Section 6 is
not satisfied when and as required to be satisfied, this Agreement may be
terminated by the Initial Purchasers by notice to the Company at any time on or
prior to the Closing Date, which termination shall be without liability on the
part of any party to any other party, except that Sections 5, 7, 9 and 10
hereof shall at all times be effective and shall survive such termination.

 

SECTION 7.                                     Reimbursement
of Initial Purchasers’ Expenses.  If this Agreement is terminated by the
Initial Purchasers pursuant to Section 6 or 11 hereof, including if the
sale to the Initial Purchasers of the Securities on the Closing Date is not
consummated because of any refusal, inability or failure on the part of the
Company to perform any agreement herein or to comply with any provision hereof,
the Company agrees to reimburse the Initial Purchasers (or such Initial
Purchasers as have terminated this Agreement with respect to themselves), severally,
upon demand for all out-of-pocket expenses that shall have been reasonably
incurred by the Initial Purchasers in connection with the proposed purchase and
the offering and sale of the Securities, including, without limitation, fees
and disbursements of counsel, printing expenses, travel expenses, postage,
facsimile and telephone charges.

 

SECTION 8.                                     Offer,
Sale and Resale Procedures.  Each of the Initial Purchasers, on the one
hand, and the Company and each of the Guarantors, on the other hand, hereby
agree to observe the following procedures in connection with the offer and sale
of the Securities:

 

(A)                                   Offers and
sales of the Securities will be made only by the Initial Purchasers or
Affiliates thereof qualified to do so in the jurisdictions in which such offers
or sales are made.  Each such offer or
sale shall only be made to persons whom the offeror or seller reasonably
believes to be Qualified Institutional Buyers or non-U.S. persons outside the
United States to whom the offeror or seller reasonably believes offers and
sales of the Securities may be made in reliance upon Regulation S upon the
terms and conditions set forth in Annex I hereto, which Annex I is hereby
expressly made a part hereof.

 

(B)                                     The Securities
will be offered by approaching prospective Subsequent Purchasers on an
individual basis.  No general
solicitation or general advertising (within the meaning of Rule 502 under
the Securities Act) will be used in the United States in connection with the
offering of the Securities.

 

(C)                                     Upon original
issuance by the Company, and until such time as the same is no longer required
under the applicable requirements of the Securities Act, the Notes (and 

 

19

 

all securities issued in
exchange therefor or in substitution thereof, other than the Exchange Notes)
shall bear the following legend:

 

“THIS NOTE HAS NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR
FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH IN THE
FOLLOWING SENTENCE.  BY ITS ACQUISITION
HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED
INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR
(B) IT IS AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN
RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE
SECURITIES ACT) (AN “INSTITUTIONAL ACCREDITED INVESTOR”) OR (C) IT IS NOT
A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN OFFSHORE TRANSACTION IN
COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (2) AGREES THAT IT
WILL NOT RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO STEEL
DYNAMICS, INC. OR ANY OF ITS SUBSIDIARIES, (B) TO A QUALIFIED
INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT,
(C) INSIDE THE UNITED STATES TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT,
PRIOR TO SUCH TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING
CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER
OF THIS NOTE (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE),
AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES
OF LESS THAN $100,000, AN OPINION OF COUNSEL ACCEPTABLE TO STEEL DYNAMICS, INC.
THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT, (D) OUTSIDE
THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904
UNDER THE SECURITIES ACT, (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR (F) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES
THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. 
IN CONNECTION WITH ANY TRANSFER OF THIS NOTE, THE HOLDER MUST TRANSFER
AND SUBMIT THIS CERTIFICATE TO THE TRUSTEE. 
IF THE PROPOSED TRANSFEREE IS AN INSTITUTIONAL ACCREDITED INVESTOR OR
NON-U.S. PERSON, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE
TRUSTEE AND STEEL DYNAMICS, INC. SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH
TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT
SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.  AS USED HEREIN, THE TERMS “OFFSHORE
TRANSACTION”, “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM
BY REGULATION S UNDER THE SECURITIES ACT. 
THE INDENTURE CONTAINS PROVISIONS REQUIRING THE TRUSTEE TO REFUSE TO REGISTER
ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING RESTRICTION.”

 

Following the sale of the Securities by the Initial
Purchasers to Subsequent Purchasers pursuant to the terms hereof, the Initial
Purchasers shall not be liable or responsible to the Company for any losses, damages
or liabilities suffered or incurred by the Company, including any losses,
damages or liabilities under the Securities Act, arising from or relating to
any resale or transfer of any Security.

 

20

 

SECTION 9.                                     Indemnification.

 

(a)                                  Indemnification
of the Initial Purchasers.  Each
of the Company and the Guarantors, jointly and severally, agrees to indemnify
and hold harmless each Initial Purchaser, its affiliates, its directors, officers
and employees, and each person, if any, who controls any Initial Purchaser
within the meaning of the Securities Act and the Exchange Act against any loss,
claim, damage, liability or expense, as incurred, to which such Initial
Purchaser, affiliate, director, officer, employee or controlling person may
become subject, under the Securities Act, the Exchange Act or other federal or
state statutory law or regulation, or at common law or otherwise (including in
settlement of any litigation, if such settlement is effected with the written
consent of the Company or otherwise permitted by Section 9(d) hereof),
insofar as such loss, claim, damage, liability or expense (or actions in
respect thereof as contemplated below) arises out of or is based:  (i) upon any untrue statement or alleged
untrue statement of a material fact contained in the Preliminary Offering
Memorandum, the Pricing Supplement, the Final Offering Memorandum (or any
amendment or supplement thereto) or any Company Supplemental Disclosure
Document, or the omission or alleged omission therefrom of a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; or (ii) in whole
or in part upon any inaccuracy in the representations and warranties of the
Company contained herein; or (iii) in whole or in part upon any failure of
the Company to perform its obligations hereunder or under law; or (iv) any
act or failure to act or any alleged act or failure to act by any Initial
Purchaser in connection with, or relating in any manner to, the offering
contemplated hereby, and which is included as part of or referred to in any
loss, claim, damage, liability or action arising out of or based upon any
matter covered by clause (i) above, provided that the Company shall
not be liable under this clause (iv) to the extent that a court of
competent jurisdiction shall have determined by a final judgment that such
loss, claim, damage, liability or action resulted directly from any such acts
or failures to act undertaken or omitted to be taken by such Initial Purchaser
through its gross negligence or willful misconduct; and to reimburse each
Initial Purchaser and each such affiliate, director, officer, employee or
controlling person for any and all expenses (including the fees and disbursements
of counsel chosen by the Initial Purchasers) as such expenses are reasonably
incurred by such Initial Purchaser or such director, officer, employee or
controlling person in connection with investigating, defending, settling,
compromising or paying any such loss, claim, damage, liability, expense or
action; provided, however, that the foregoing indemnity agreement shall not
apply to any loss, claim, damage, liability or expense to the extent, but only
to the extent, arising out of or based upon any untrue statement or alleged
untrue statement or omission or alleged omission made in reliance upon and in
conformity with written information furnished to the Company by Banc of America
Securities LLC expressly for use in the Preliminary Offering Memorandum, the
Pricing Supplement, the Final Offering Memorandum (or any amendment or
supplement thereto) or any Company Supplemental Disclosure Document.  The indemnity agreement set forth in this Section 9(a) shall
be in addition to any liabilities that the Company may otherwise have.

 

(b)                                 Indemnification
of the Company and the Guarantors.  Each Initial Purchaser agrees, severally and
not jointly, to indemnify and hold harmless the Company, each Guarantor, each
of their respective directors and officers and each person, if any, who
controls the Company or any Guarantor within the meaning of the Securities Act
or the Exchange Act, against any loss, claim, damage, liability or expense, as
incurred, to which the Company, any Guarantor or any such director, officer or
controlling person may become subject, under the Securities Act, the Exchange
Act, or other federal or state statutory law or regulation, or at common law or
otherwise (including in settlement of any litigation, if such settlement is
effected with the written consent of such Initial Purchaser or otherwise
permitted by Section 9(d) hereof), insofar as such loss, claim,
damage, liability or expense (or actions in respect thereof as contemplated
below) arises 

 

21

 

out of or is based upon any untrue statement
or alleged untrue statement of a material fact contained in the Preliminary
Offering Memorandum, the Pricing Supplement, the Final Offering Memorandum (or
any amendment or supplement thereto) or any Company Supplemental Disclosure
Document, or the omission or alleged omission therefrom of a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in the Preliminary Offering
Memorandum, the Pricing Supplement, the Final Offering Memorandum (or any amendment
or supplement thereto) or any Company Supplemental Disclosure Document, in reliance
upon and in conformity with written information furnished to the Company by
Banc of America Securities LLC expressly for use therein; and to reimburse the
Company, any Guarantor and each such director, officer or controlling person
for any and all expenses (including the fees and disbursements of counsel) as
such expenses are reasonably incurred by the Company, any Guarantor or such
director, officer or controlling person in connection with investigating, defending,
settling, compromising or paying any such loss, claim, damage, liability,
expense or action.  Each of the Company
and the Guarantors hereby acknowledges that the only information that the
Initial Purchasers have furnished to the Company expressly for use in the
Preliminary Offering Memorandum, the Pricing Supplement or the Final Offering
Memorandum (or any amendment or supplement thereto) are the statements set
forth in the fourth and eighth paragraphs under the caption “Plan of Distribution”
in the Preliminary Offering Memorandum and the Final Offering Memorandum.  The indemnity agreement set forth in this Section 9(b) shall
be in addition to any liabilities that each Initial Purchaser may otherwise
have.

 

(c)                                  Notifications
and Other Indemnification Procedures.  Promptly after receipt by an indemnified
party under this Section 9 of notice of the commencement of any action,
such indemnified party will, if a claim in respect thereof is to be made
against an indemnifying party under this Section 9, notify the
indemnifying party in writing of the commencement thereof, but the omission so
to notify the indemnifying party will not relieve it from any liability which
it may have to any indemnified party for contribution or otherwise than under
the indemnity agreement contained in this Section 9 or to the extent it is
not prejudiced as a proximate result of such failure.  In case any such action is brought against
any indemnified party and such indemnified party seeks or intends to seek
indemnity from an indemnifying party, the indemnifying party will be entitled
to participate in and, to the extent that it shall elect, jointly with all
other indemnifying parties similarly notified, by written notice delivered to
the indemnified party promptly after receiving the aforesaid notice from such
indemnified party, to assume the defense thereof with counsel reasonably
satisfactory to such indemnified party; provided, however, if the defendants in
any such action include both the indemnified party and the indemnifying party
and the indemnified party shall have reasonably concluded that a conflict may
arise between the positions of the indemnifying party and the indemnified party
in conducting the defense of any such action or that there may be legal defenses
available to it and/or other indemnified parties which are different from or
additional to those available to the indemnifying party, the indemnified party
or parties shall have the right to select separate counsel to assume such legal
defenses and to otherwise participate in the defense of such action on behalf
of such indemnified party or parties. 
Upon receipt of notice from the indemnifying party to such indemnified
party of such indemnifying party’s election so to assume the defense of such
action and approval by the indemnified party of counsel, the indemnifying party
will not be liable to such indemnified party under this Section 9 for any
legal or other expenses subsequently incurred by such indemnified party in
connection with the defense thereof unless (i) the indemnified party shall
have employed separate counsel in accordance with the proviso to the next
preceding sentence (it being understood, 

 

22

 

however, that the indemnifying party shall
not be liable for the expenses of more than one separate counsel (together with
local counsel), approved by the indemnifying party (Banc of America Securities
LLC in the case of Sections 9(b) and 10 hereof), representing the
indemnified parties who are parties to such action) or (ii) the
indemnifying party shall not have employed counsel satisfactory to the
indemnified party to represent the indemnified party within a reasonable time
after notice of commencement of the action, in each of which cases the fees and
expenses of counsel shall be at the expense of the indemnifying party.

 

(d)                                 Settlements.  The indemnifying party under this Section 9
shall not be liable for any settlement of any proceeding effected without its
written consent, but if settled with such consent or if there be a final
judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party against any loss, claim, damage, liability or expense by
reason of such settlement or judgment. 
Notwithstanding the foregoing sentence, if at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified
party for fees and expenses of counsel as contemplated by this Section 9,
the indemnifying party agrees that it shall be liable for any settlement of any
proceeding effected without its written consent if (i) such settlement is
entered into more than 30 days after receipt by such indemnifying party of the
aforesaid request and (ii) such indemnifying party shall not have reimbursed
the indemnified party in accordance with such request prior to the date of such
settlement.  No indemnifying party shall,
without the prior written consent of the indemnified party, effect any
settlement, compromise or consent to the entry of judgment in any pending or
threatened action, suit or proceeding in respect of which any indemnified party
is or could have been a party and indemnity was or could have been sought
hereunder by such indemnified party, unless such settlement, compromise or consent
(i) includes an unconditional release of such indemnified party from all
liability on claims that are the subject matter of such action, suit or
proceeding and (ii) does not include any statements as to or any findings
of fault, culpability or failure to act by or on behalf of any indemnified
party.

 

SECTION 10.                               Contribution.  If the indemnification provided for in Section 9
hereof is for any reason held to be unavailable to or otherwise insufficient to
hold harmless an indemnified party in respect of any losses, claims, damages,
liabilities or expenses referred to therein, then each indemnifying party shall
contribute to the aggregate amount paid or payable by such indemnified party,
as incurred, as a result of any losses, claims, damages, liabilities or
expenses referred to therein (i) in such proportion as is appropriate to
reflect the relative benefits received by the Company and the Guarantors, on
the one hand, and the Initial Purchasers, on the other hand, from the offering
of the Securities pursuant to this Agreement or (ii) if the allocation provided
by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) above but also the relative fault of the Company and
the Guarantors, on the one hand, and the Initial Purchasers, on the other hand,
in connection with the statements or omissions or inaccuracies in the
representations and warranties herein which resulted in such losses, claims,
damages, liabilities or expenses, as well as any other relevant equitable
considerations.  The relative benefits
received by the Company and the Guarantors, on the one hand, and the Initial
Purchasers, on the other hand, in connection with the offering of the
Securities pursuant to this Agreement shall be deemed to be in the same respective
proportions as the total net proceeds from the offering of the Securities
pursuant to this Agreement (before deducting expenses) received by the Company,
and the total discount received by the Initial Purchasers bear to the aggregate
initial offering price of the Securities. 
The relative fault of the Company and the Guarantors, on the one hand,
and the Initial Purchasers, on the other hand, shall be determined by reference
to, among other things, whether any such untrue 

 

23

 

or alleged untrue statement of a material
fact, any such omission or alleged omission to state a material fact, or any
such inaccurate or alleged inaccurate representation or warranty relates to
information supplied by the Company and the Guarantors, on the one hand, or the
Initial Purchasers, on the other hand, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission or inaccuracy.

 

The amount paid or payable by a party as a result of
the losses, claims, damages, liabilities and expenses referred to above shall
be deemed to include, subject to the limitations set forth in Section 9
hereof, any legal or other fees or expenses reasonably incurred by such party
in connection with investigating or defending any action or claim.  The provisions set forth in Section 9
hereof with respect to notice of commencement of any action shall apply if a
claim for contribution is to be made under this Section 10; provided,
however, that no additional notice shall be required with respect to any action
for which notice has been given under Section 9 hereof for purposes of indemnification.

 

The Company, the Guarantors and the Initial
Purchasers agree that it would not be just and equitable if contribution
pursuant to this Section 10 were determined by pro rata allocation (even
if the Initial Purchasers were treated as one entity for such purpose) or by
any other method of allocation which does not take account of the equitable considerations
referred to in this Section 10.

 

Notwithstanding the provisions of this Section 10,
no Initial Purchaser shall be required to contribute any amount in excess of
the discount received by such Initial Purchaser in connection with the
Securities distributed by it.  No person
guilty of fraudulent misrepresentation (within the meaning of Section 11
of the Securities Act) shall be entitled to contribution from any person who
was not guilty of such fraudulent misrepresentation.  The Initial Purchasers’ obligations to
contribute pursuant to this Section 10 are several, and not joint, in
proportion to their respective commitments as set forth opposite their names in
Schedule I.  For purposes of this Section 10,
each affiliate, director, officer and employee of an Initial Purchaser and each
person, if any, who controls an Initial Purchaser within the meaning of the
Securities Act and the Exchange Act shall have the same rights to contribution
as such Initial Purchaser, and each director of the Company or any Guarantor,
and each person, if any, who controls the Company or any Guarantor with the
meaning of the Securities Act and the Exchange Act shall have the same rights
to contribution as the Company and the Guarantors.

 

SECTION 11.                               Termination
of this Agreement.  The Initial
Purchasers may terminate this Agreement by notice given by the Initial Purchasers
to the Company, if  after the execution
and delivery of this Agreement and prior to the Closing Date (i) trading
generally shall have been suspended or materially limited on, or by, as the
case may be, any of the New York Stock Exchange, the Nasdaq Global Market, the
Chicago Board of Options Exchange, the Chicago Mercantile Exchange or the Chicago
Board of Trade, (ii) trading of any securities of the Company shall have
been suspended on any exchange or in any over-the-counter market, (iii) a
material disruption in securities settlement, payment or clearance services in
the United States shall have occurred, (iv) any moratorium on commercial
banking activities shall have been declared by Federal or New York State
authorities or (v) there shall have occurred any outbreak or escalation of
hostilities, or any change in financial markets or any calamity or crisis that,
in the judgment of Banc of America Securities LLC, is material and adverse and
which, singly or together with any other event specified in this
clause (v), makes it, in the judgment of Banc of America Securities LLC,
impracticable or inadvisable to proceed with the offer, sale or delivery of the
Securities on 

 

24

 

the terms and in the manner contemplated in
the Offering Memorandum; (vi) in the judgment of Banc of America
Securities LLC there shall have occurred any Material Adverse Change; or (vii) the
Company shall have sustained a loss by strike, fire, flood, earthquake,
accident or other calamity of such character as in the judgment of Banc of
America Securities LLC may interfere materially with the conduct of the
business and operations of the Company regardless of whether or not such loss
shall have been insured.  Any termination
pursuant to this Section 11 shall be without liability on the part of (i) the
Company or any Guarantor to any Initial Purchaser, except that the Company and
the Guarantors shall be obligated to reimburse the expenses of the Initial
Purchasers pursuant to Sections 5 and 7 hereof, (ii) any Initial
Purchaser to the Company, or (iii) any party hereto to any other party
except that the provisions of Sections 9 and 10 hereof shall at all times
be effective and shall survive such termination.

 

SECTION 12.                               Representations
and Indemnities to Survive Delivery.  The respective indemnities, agreements,
representations, warranties and other statements of the Company, the
Guarantors, their respective officers and the several Initial Purchasers set
forth in or made pursuant to this Agreement will remain in full force and
effect, regardless of any investigation made by or on behalf of any Initial
Purchaser, the Company, any Guarantor or any of their partners, officers or
directors or any controlling person, as the case may be, and will survive
delivery of and payment for the Securities sold hereunder and any termination
of this Agreement.

 

SECTION 13.                               Notices.  All communications hereunder shall be in
writing and shall be mailed, hand delivered, couriered or facsimiled and
confirmed to the parties hereto as follows:

 

If to the Initial
Purchasers:

Banc of America Securities LLC

One Bryant Park

New York, New York  10036

Facsimile: (212) 901-7897

Attention: Legal Department

 

with a copy to:

Shearman & Sterling LLP

599 Lexington Avenue

New York, New York 10022

Facsimile: 212-848-7293

Attention: Andrew Schleider

 

If to the Company or the Guarantors:

 

Steel Dynamics, Inc.

7575 West Jefferson Blvd.

Fort Wayne, Indiana 46804

Facsimile: (260) 969-3587

Attention: Theresa Wagler

 

with a copy to:

 

25

 

Barrett & McNagny
LLP

215 East Berry Street 

Fort Wayne, Indiana 46802

Facsimile: (260) 423-8920

Attention: Robert Walters

 

Any party hereto may change the address or facsimile
number for receipt of communications by giving written notice to the others.

 

SECTION 14.                               Successors.  This Agreement will inure to the benefit of
and be binding upon the parties hereto, including any substitute Initial
Purchasers pursuant to Section 17 hereof, and to the benefit of the
indemnified parties referred to in Sections 9 and 10 hereof, and in each
case their respective successors, and no other person will have any right or
obligation hereunder.  The term “successors”
shall not include any Subsequent Purchaser or other purchaser of the Securities
as such from any of the Initial Purchasers merely by reason of such purchase.

 

SECTION 15.                               Partial
Unenforceability.  The
invalidity or unenforceability of any section, paragraph or provision of this
Agreement shall not affect the validity or enforceability of any other section,
paragraph or provision hereof.  If any
section, paragraph or provision of this Agreement is for any reason determined
to be invalid or unenforceable, there shall be deemed to be made such minor
changes (and only such minor changes) as are necessary to make it valid and
enforceable.

 

SECTION 16.                               Governing
Law Provisions.  THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
IN SUCH STATE.

 

SECTION 17.                               Consent
to Jurisdiction.  Any legal
suit, action or proceeding arising out of or based upon this Agreement or the
transactions contemplated hereby (“Related Proceedings”) may be instituted in
the federal courts of the United States of America located in the City and
County of New York or the courts of the State of New York in each case located
in the City and County of New York (collectively, the “Specified Courts”), and
each party irrevocably submits to the exclusive jurisdiction (except for suits,
actions, or proceedings instituted in regard to the enforcement of a judgment
of any Specified Court in a Related Proceeding, as to which such jurisdiction
is non-exclusive) of the Specified Courts in any Related Proceeding.  Service of any process, summons, notice or
document by mail to such party’s address set forth above shall be effective
service of process for any Related Proceeding brought in any Specified
Court.  The parties irrevocably and
unconditionally waive any objection to the laying of venue of any Specified
Proceeding in the Specified Courts and irrevocably and unconditionally waive
and agree not to plead or claim in any Specified Court that any Related Proceeding
brought in any Specified Court has been brought in an inconvenient forum.

 

SECTION 18.                               Default
of One or More of the Several Initial Purchasers.  If any one or more of the several Initial
Purchasers shall fail or refuse to purchase Securities that it or they have
agreed to purchase hereunder on the Closing Date, and the aggregate number of
Securities which such defaulting Initial Purchaser or Initial Purchasers agreed
but failed or refused to purchase does not exceed 10% of the aggregate number
of the Securities to be purchased on such 

 

26

 

date, the other Initial Purchasers shall be
obligated, severally, in the proportions that the number of Securities set
forth opposite their respective names on Schedule I bears to the aggregate
number of Securities set forth opposite the names of all such non-defaulting
Initial Purchasers, or in such other proportions as may be specified by the
Initial Purchasers with the consent of the non-defaulting Initial Purchasers,
to purchase the Securities which such defaulting Initial Purchaser or Initial
Purchasers agreed but failed or refused to purchase on the Closing Date.  If any one or more of the Initial Purchasers
shall fail or refuse to purchase Securities and the aggregate number of
Securities with respect to which such default occurs exceeds 10% of the
aggregate number of Securities to be purchased on the Closing Date, and
arrangements satisfactory to the Initial Purchasers and the Company for the
purchase of such Securities are not made within 48 hours after such default,
this Agreement shall terminate without liability of any party to any other
party except that the provisions of Sections 5, 7, 9 and 10 hereof shall
at all times be effective and shall survive such termination.  In any such case either the Initial
Purchasers or the Company shall have the right to postpone the Closing Date, as
the case may be, but in no event for longer than seven days in order that the
required changes, if any, to the Final Offering Memorandum or any other
documents or arrangements may be effected.

 

As used in this Agreement,
the term “Initial Purchaser” shall be deemed to include any person substituted
for a defaulting Initial Purchaser under this Section 18.  Any action taken under this Section 18
shall not relieve any defaulting Initial Purchaser from liability in respect of
any default of such Initial Purchaser under this Agreement.

 

SECTION 19.                               No
Advisory or Fiduciary Responsibility.  Each of the Company and the Guarantors
acknowledges and agrees that: (i) the purchase and sale of the Securities
pursuant to this Agreement, including the determination of the offering price
of the Securities and any related discounts and commissions, is an arm’s-length
commercial transaction between the Company and the Guarantors, on the one hand,
and the several Initial Purchasers, on the other hand, and the Company and the
Guarantors are capable of evaluating and understanding and understand and
accept the terms, risks and conditions of the transactions contemplated by this
Agreement; (ii) in connection with each transaction contemplated hereby
and the process leading to such transaction each Initial Purchaser is and has
been acting solely as a principal and is not the agent or fiduciary of the
Company, the Guarantors or their respective affiliates, stockholders, creditors
or employees or any other party; (iii) no Initial Purchaser has assumed or
will assume an advisory or fiduciary responsibility in favor of the Company or
the Guarantors with respect to any of the transactions contemplated hereby or
the process leading thereto (irrespective of whether such Initial Purchaser has
advised or is currently advising the Company or the Guarantors on other
matters) or any other obligation to the Company and the Guarantors except the obligations
expressly set forth in this Agreement; (iv) the several Initial Purchasers
and their respective affiliates may be engaged in a broad range of transactions
that involve interests that differ from those of the Company and the Guarantors
and that the several Initial Purchasers have no obligation to disclose any of
such interests by virtue of any fiduciary or advisory relationship; and (v) the
Initial Purchasers have not provided any legal, accounting, regulatory or tax
advice with respect to the offering contemplated hereby and the Company and the
Guarantors have consulted their own legal, accounting, regulatory and tax
advisors to the extent they deemed appropriate.

 

This Agreement supersedes all prior agreements and
understandings (whether written or oral) between the Company, the Guarantors
and the several Initial Purchasers, or any of them, with respect to the subject
matter hereof.  The Company and the
Guarantors hereby waive and 

 

27

 

release, to the fullest
extent permitted by law, any claims that the Company and the Guarantors may
have against the several Initial Purchasers with respect to any breach or
alleged breach of fiduciary duty.

 

SECTION 20.                               General
Provisions.  This
Agreement constitutes the entire agreement of the parties to this Agreement and
supersedes all prior written or oral and all contemporaneous oral agreements,
understandings and negotiations with respect to the subject matter hereof.  This Agreement may be executed in two or more
counterparts, each one of which shall be an original, with the same effect as
if the signatures thereto and hereto were upon the same instrument. This
Agreement may not be amended or modified unless in writing by all of the
parties hereto, and no condition herein (express or implied) may be waived
unless waived in writing by each party whom the condition is meant to benefit.  The section headings herein are for the
convenience of the parties only and shall not affect the construction or
interpretation of this Agreement.

 

28

 

If the foregoing is in accordance with your
understanding of our agreement, kindly sign and return to the Company the
enclosed copies hereof, whereupon this instrument, along with all counterparts
hereof, shall become a binding agreement in accordance with its terms.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  STEEL
  DYNAMICS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
   Theresa E. Wagler

  
	
   

  	
   

  	
  Title:    Executive Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  SDI
  INVESTMENT COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
   Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  President

  
	
   

  	
   

  	
   

  
	
   

  	
  NEW
  MILLENNIUM BUILDING SYSTEMS, LLC

  
	
   

  	
   

  
	
   

  	
  By:  STEEL DYNAMICS, INC., its sole member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Executive Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  STEEL
  DYNAMICS SALES NORTH AMERICA, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  President

  
	
   

  	
   

  	
   

  
	
   

  	
  ROANOKE
  ELECTRIC STEEL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  JOHN
  W. HANCOCK, JR., LLC

  
	
   

  	
   

  
	
   

  	
  By:  ROANOKE ELECTRIC STEEL CORPORATION, MANAGER
  AND SOLE MEMBER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  

 

Purchase Agreement

 

 

	
   

  	
  NEW
  MILLENNIUM BUILDING SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  SOCAR
  OF OHIO, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  STEEL
  OF WEST VIRGINIA, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  SWVA,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  MARSHALL
  STEEL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  STEEL
  VENTURES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  SHREDDED
  PRODUCTS II, LLC

  
	
   

  	
   

  
	
   

  	
  By:  STEEL DYNAMICS, INC., MANAGER AND SOLE
  MEMBER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Executive Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  THE
  TECHS INDUSTRIES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  

 

Purchase Agreement

 

 

	
   

  	
  CAPITOL
  CITY METALS, LLC

  
	
   

  	
   

  
	
   

  	
  By:  OMNISOURCE INDIANAPOLIS, LLC, SOLE MEMBER

  
	
   

  	
   

  
	
   

  	
  By:  OMNISOURCE CORPORATION, SOLE MEMBER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  JACKSON IRON &
  METAL COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  MICHIGAN
  PROPERTIES ECORSE, LLC

  
	
   

  	
   

  
	
   

  	
  By:  OMNISOURCE CORPORATION, SOLE MEMBER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE
  BAY CITY, LLC

  
	
   

  	
   

  
	
   

  	
  By:  JACKSON IRON & METAL COMPANY,
  INC., SOLE MEMBER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE
  ATHENS DIVISION, LLC

  
	
   

  	
   

  
	
   

  	
  By:  OMNISOURCE CORPORATION, SOLE MEMBER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  

 

Purchase Agreement

 

 

	
   

  	
  OMNISOURCE
  INDIANAPOLIS, LLC

  
	
   

  	
   

  
	
   

  	
  By:  OMNISOURCE CORPORATION, SOLE MEMBER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE MEXICO, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:  OMNISOURCE CORPORATION, SOLE MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE TRANSPORT, LLC

  
	
   

  	
   

  
	
   

  	
  By:  OMNISOURCE CORPORATION, SOLE MEMBER

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  RECOVERY TECHNOLOGIES, LLC

  
	
   

  	
   

  
	
   

  	
  By:  OMNISOURCE CORPORATION, SOLE MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  SUPERIOR ALUMINUM ALLOYS,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:  Vice President

  

 

Purchase Agreement

 

 

	
   

  	
  OMNISOURCE
  SOUTHEAST, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Theresa
  E. Wagler, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  COHEN &
  GREEN SALVAGE CO., INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Theresa
  E. Wagler, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  LUMBERTON
  RECYCLING COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Theresa
  E. Wagler, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  RAEFORD
  SALVAGE COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Theresa
  E. Wagler, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  CAROLINAS
  RECYCLING GROUP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  BY:
   OMNISOURCE SOUTHEAST, LLC, MANAGER AND
  SOLE MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Theresa E. Wagler

  
	
   

  	
   

  	
  Theresa E. Wagler, Vice
  President

  

 

Purchase Agreement

 

 

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

 

BANC OF AMERICA SECURITIES LLC

GOLDMAN, SACHS & CO.

J.P. MORGAN SECURITIES INC.

MORGAN STANLEY & CO. INCORPORATED

 

	
  By:
   Banc of America Securities LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Michael D. Browne

  	
   

  
	
   

  	
  Michael
  D. Browne

  	
   

  
	
   

  	
  Managing
  Director

  	
   

  

 

Purchase Agreement

 

 

SCHEDULE I

 

	
  Initial
  Purchasers

  	
   

  	
  Aggregate Principal

  Amount of Securities

  to be Purchased

  	
   

  
	
  Banc of America Securities LLC

  	
   

  	
  $

  	
  175,000,000

  	
   

  
	
  Goldman, Sachs & Co.

  	
   

  	
  70,000,000

  	
   

  
	
  J.P. Morgan Securities Inc.

  	
   

  	
  52,500,000

  	
   

  
	
  Morgan Stanley & Co. Incorporated

  	
   

  	
  52,500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  350,000,000

  	
   

  

 

35

 

SCHEDULE II

 

GUARANTORS

 

	
  NAME

  	
   

  	
  JURISDICTION

  
	
  OMNISOURCE SOUTHEAST, LLC

  	
   

  	
  Delaware

  
	
  SDI INVESTMENT COMPANY

  	
   

  	
  Delaware

  
	
  STEEL DYNAMICS SALES NORTH AMERICA, INC.

  	
   

  	
  Indiana

  
	
  NEW MILLENNIUM BUILDING SYSTEMS, LLC

  	
   

  	
  Indiana

  
	
  ROANOKE ELECTRIC STEEL CORPORATION

  	
   

  	
  Indiana

  
	
  COHEN & GREEN SALVAGE CO., INC.

  	
   

  	
  North Carolina

  
	
  LUMBERTON RECYCLING COMPANY, INC.

  	
   

  	
  North Carolina

  
	
  RAEFORD SALVAGE COMPANY, INC.

  	
   

  	
  North Carolina

  
	
  NEW MILLENNIUM BUILDING SYSTEMS, INC.

  	
   

  	
  South Carolina

  
	
  CAROLINAS RECYCLING GROUP, LLC

  	
   

  	
  South Carolina

  
	
  SOCAR OF OHIO, INC.

  	
   

  	
  Ohio

  
	
  SHREDDED PRODUCTS II, LLC

  	
   

  	
  Indiana

  
	
  JOHN W. HANCOCK, JR., LLC

  	
   

  	
  Virginia

  
	
  STEEL OF WEST VIRGINIA, INC.

  	
   

  	
  Delaware

  
	
  STEEL VENTURES, INC.

  	
   

  	
  Delaware

  
	
  SWVA, INC.

  	
   

  	
  Delaware

  
	
  MARSHALL STEEL, INC.

  	
   

  	
  Delaware

  
	
  THE TECHS INDUSTRIES, INC.

  	
   

  	
  Delaware

  
	
  OMNISOURCE CORPORATION

  	
   

  	
  Indiana

  
	
  CAPITOL CITY METALS, LLC

  	
   

  	
  Indiana

  
	
  JACKSON IRON & METAL COMPANY, INC.

  	
   

  	
  Michigan

  
	
  MICHIGAN PROPERTIES ECORSE, LLC

  	
   

  	
  Indiana

  
	
  OMNISOURCE ATHENS DIVISION, LLC

  	
   

  	
  Indiana

  
	
  OMNISOURCE BAY CITY, LLC

  	
   

  	
  Indiana

  
	
  OMNISOURCE INDIANAPOLIS, LLC

  	
   

  	
  Indiana

  
	
  OMNISOURCE, LLC

  	
   

  	
  Indiana

  
	
  OMNISOURCE MEXICO, LLC

  	
   

  	
  Indiana

  
	
  OMNISOURCE TRANSPORT, LLC

  	
   

  	
  Indiana

  
	
  RECOVERY TECHNOLOGIES, LLC

  	
   

  	
  Indiana

  

 

36

 

	
  NAME

  	
   

  	
  JURISDICTION

  
	
  SUPERIOR ALUMINUM ALLOYS, LLC

  	
   

  	
  Indiana

  

 

37

 

SCHEDULE III

 

DIRECT AND INDIRECT SUBSIDIARIES

 

	
  Name

  	
   

  	
  Percent of capital

  stock/equity units

  owned by

  Steel Dynamics,

  Inc.

  	
   

  	
  Percent of voting

  stock/voting

  units owned by

  Steel Dynamics,

  Inc.

  	
   

  
	
  SDI Investment Company

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  New Millennium Building Systems,
  LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Paragon Steel Enterprises,
  LLC

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  Ferrous Resources, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  STLD Holdings, Inc.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Steel Dynamics Sales North
  America, Inc.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Roanoke Electrical Steel
  Corporation

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Dynamic Composites, LLC

  	
   

  	
  84

  	
  %

  	
  84

  	
  %

  
	
  Shredded Products II, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  John W. Hancock, Jr.,
  LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  New Millennium Building
  Systems, Inc.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Socar of Ohio, Inc.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Steel of West
  Virginia, Inc.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  SWVA, Inc.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Marshall Steel, Inc.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Steel Ventures, Inc.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Dynamic Aviation, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  The Techs
  Industries, Inc.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Mesabi Nugget Delaware,
  LLC

  	
   

  	
  81

  	
  %

  	
  81

  	
  %

  
	
  OmniSource Corporation

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Capitol City Metals, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Jackson Iron &
  Metal Company, Inc.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Michigan Properties
  Ecorse, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  OmniSource Athens
  Division, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  OmniSource Bay City, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  OmniSource Indianapolis,
  LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  OmniSource, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  OmniSource Mexico, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  OmniSource Transport, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Recovery Technologies, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Speedbird Aviation, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Superior Aluminum Alloys,
  LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Cumberland Recycling
  Group, LLC

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  OmniSource/Mervis, LLC

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  Mississippi Scrap
  Recycling, LLC

  	
   

  	
  49

  	
  %

  	
  49

  	
  %

  
	
  Dynamic Abrasives, LLC

  	
   

  	
  90

  	
  %

  	
  90

  	
  %

  
	
  Carolinas Recycling Group,
  LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  

 

38

 

	
  Indiana Melting &
  Manufacturing, LLC

  	
   

  	
  90

  	
  %

  	
  90

  	
  %

  
	
  Mesabi Mining, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Cohen & Green
  Salvage Company, Inc.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Lumberton Recycling Company, Inc.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Raeford Salvage
  Company, Inc.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  OmniSource Southeast, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Protrade Steel Company,
  Ltd

  	
   

  	
  13.2

  	
  %

  	
  13.2

  	
  %

  
	
  Second Pass LLC

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  SDI Sub, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  OmniSource Scrap Metals
  Management of Mexico, S.de.R.L. de C.V.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  OmniSource Mexico
  S.de.R.L. de C.V.

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  Resource Ventures, LLC

  	
   

  	
  90

  	
  %

  	
  90

  	
  %

  
	
  Resource Ventures II, LLC

  	
   

  	
  64

  	
  %

  	
  64

  	
  %

  
	
  Dynamic Holdings, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  
	
  OmniSource Holdings, LLC

  	
   

  	
  100

  	
  %

  	
  100

  	
  %

  

 

39

 

SCHEDULE IV

 

	
  PRICING SUPPLEMENT

  	
   

  	
  STRICTLY CONFIDENTIAL

  

 

$350,000,000

 

7 5/8% Senior
Notes due 2020

 

March 11,
2010

 

Pricing Supplement dated March 11, 2010 to Preliminary Offering
Memorandum dated March 11, 2010 of Steel Dynamics, Inc.

 

This Pricing Supplement is qualified in its entirety
by reference to the Preliminary Offering Memorandum.

 

The information in this Pricing Supplement
supplements the Preliminary Offering Memorandum and supersedes the information
in the Preliminary Offering Memorandum to the extent inconsistent with the
information in the Preliminary Offering Memorandum.  Defined terms used herein, but not otherwise
defined, shall have the meanings assigned to them in the Preliminary Offering
Memorandum.

 

The notes have not been registered under the
Securities Act of 1933 and are being offered only to (1) “qualified institutional
buyers” as defined in Rule 144A under the Securities Act and (2) outside
the United States to non-U.S. persons in compliance with Regulation S under the
Securities Act.

 

This investment involves risks. 
See “Risk Factors” beginning on page 9 of the Preliminary Offering
Memorandum.  This pricing supplement must
be read together with the Preliminary Offering Memorandum.

 

	
  Issuer:

  	
   

  	
  Steel
  Dynamics, Inc.

  
	
   

  	
   

  	
   

  
	
  Principal Amount:

  	
   

  	
  $350,000,000

  
	
   

  	
   

  	
   

  
	
  Title of Securities:

  	
   

  	
  7
  5/8% Senior Notes due 2020

  
	
   

  	
   

  	
   

  
	
  Final Maturity Date:

  	
   

  	
  March 15,
  2020

  
	
   

  	
   

  	
   

  
	
  Issue Price:

  	
   

  	
  100.00%,
  plus accrued interest, if any

  
	
   

  	
   

  	
   

  
	
  Coupon:

  	
   

  	
  7.625%

  
	
   

  	
   

  	
   

  
	
  Interest Payment Dates:

  	
   

  	
  March 15
  and September 15

  

 

40

 

	
  Record Dates:

  	
   

  	
  March 1
  and September 1

  
	
   

  	
   

  	
   

  
	
  First Interest Payment Date:

  	
   

  	
  September 15,
  2010

  
	
   

  	
   

  	
   

  
	
  Optional Redemption:

  	
   

  	
  The
  Notes will be redeemable at any time on or after March 15, 2015 at
  redemption prices set forth below, plus accrued and unpaid interest, if any,
  up to but not including the date of redemption.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Year

  	
   

  	
  Redemption Price

  	
   

  
	
   

  	
   

  	
  2015

  	
   

  	
  103.813

  	
  %

  
	
   

  	
   

  	
  2016

  	
   

  	
  102.542

  	
  %

  
	
   

  	
   

  	
  2017

  	
   

  	
  101.271

  	
  %

  
	
   

  	
   

  	
  2018 and thereafter

  	
   

  	
  100.000

  	
  %

  
	
   

  	
   

  	
   

  
	
  Optional Redemption with Equity Proceeds:

  	
   

  	
  In
  addition, before March 15, 2013, the Company may use the net cash
  proceeds from certain equity offerings to redeem up to an aggregate of 35% of
  the aggregate principal amount of Notes issued under the Indenture at a
  redemption price equal to 107.625% of the aggregate principal amount of the
  Notes redeemed, plus accrued and unpaid interest, if any, to the redemption
  date. At least 65% of the aggregate principal amount of Notes issued under
  the Indenture must remain outstanding immediately after the occurrence of
  such redemption.

  
	
   

  	
   

  	
   

  
	
  Net Proceeds:

  	
   

  	
  The
  net proceeds of this offering of the Notes will be approximately $343.6
  million, after deducting the Initial Purchasers’ discount and other fees and
  expenses relating to the offering.

  
	
   

  	
   

  	
   

  
	
  Change of Control:

  	
   

  	
  101% plus accrued interest

  
	
   

  	
   

  	
   

  
	
  Initial Purchasers:

  	
   

  	
  Banc
  of America Securities LLC

  Goldman, Sachs & Co.

  J.P. Morgan Securities Inc.

  Morgan Stanley & Co. Incorporated

  
	
   

  	
   

  	
   

  
	
  Trade Date:

  	
   

  	
  March 11,
  2010

  
	
   

  	
   

  	
   

  
	
  Settlement Date:

  	
   

  	
  March 17,
  2010 (T+4)

  
	
   

  	
   

  	
   

  
	
  Distribution:

  	
   

  	
  144A
  and Regulation S with registration rights as set forth in the Preliminary
  Offering Memorandum

  
	
   

  	
   

  	
   

  
	
  CUSIP/ISIN Numbers:

  	
   

  	
  144A
  CUSIP:

  	
   

  	
  858119
  AQ3

  
	
   

  	
   

  	
  144A
  ISIN:

  	
   

  	
  US858119AQ33

  
								

 

41

 

	
   

  	
   

  	
  Regulation
  S CUSIP:

  	
   

  	
  U85795
  AG4

  
	
   

  	
   

  	
  Regulation
  S ISIN:

  	
   

  	
  USU85795AG47

  

 

42

 

SCHEDULE V

 

SUPPLEMENTAL
DISCLOSURE DOCUMENTS

 

Electronic Roadshow dated March 11,
2010

 

43

 

EXHIBIT A-1

 

Form of opinion of Barrett & McNagny LLP to be delivered
pursuant to Section 6(c)(1) of the Purchase Agreement.

 

(i)            The Company has been duly
incorporated and is validly existing as a corporation in good standing under
the laws of the State of Indiana.

 

(ii)           The Company has the
corporate power and authority to own, lease and operate its properties and to
conduct its business as described in the Pricing Disclosure Package and the
Final Offering Memorandum and to enter into and perform its obligations under
the Purchase Agreement, the Registration Rights Agreement, the Indenture, the
Securities, the Exchange Securities and the DTC Agreement.

 

(iii)          The Company is duly
qualified as a foreign corporation to transact business and is in good standing
in each jurisdiction in which such qualification is required, whether by reason
of the ownership or leasing of property or the conduct of business, except for
such jurisdictions where the failure to so qualify or to be in good standing
would not, individually or in the aggregate, result in a Material Adverse
Effect.

 

(iv)          Each Guarantor has been duly
incorporated or organized, is validly existing as a corporation or as a limited
liability company in good standing under the laws of the jurisdiction of its incorporation
or organization, has the power and authority to own, lease and operate its
properties and to conduct its business as described in the Pricing Disclosure
Package and the Final Offering Memorandum and is duly qualified as a foreign
corporation or limited liability company, as the case may be, to transact
business and is in good standing in each jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing of property
or the conduct of business, except where the failure so to qualify or to be in
good standing would not result in a Material Adverse Effect.

 

(v)           All shares of common stock
of the Company outstanding on the Closing Date have been duly authorized and
are validly issued, fully paid and non-assessable; and all of the issued and
outstanding shares of capital stock, and all membership units or interests, of
each Guarantor has been duly authorized and validly issued, is fully paid and
non-assessable, and, to the best of such counsel’s knowledge, is owned by the
Company, directly or through subsidiaries, free and clear of any security
interest, mortgage, pledge, lien, encumbrance, claim or equity, excepting liens
in favor of National City Bank as collateral agent under the Credit Agreement;
none of the outstanding shares of capital stock of any Guarantor was issued in
violation of the preemptive or similar rights of any securityholder of such
Guarantor.

 

(vi)          The Purchase Agreement has
been duly authorized, executed and delivered by the Company and each Guarantor.

 

44

 

(vii)         The Registration Rights
Agreement has been duly authorized, executed and delivered by the Company and
each Guarantor.

 

(viii)        The DTC Agreement has been
duly authorized, executed and delivered by the Company.

 

(ix)          The Indenture has been duly
authorized, executed and delivered by the Company and each Guarantor.

 

(x)           The Notes are in the form
contemplated by the Indenture, have been duly authorized by the Company and,
assuming that the Notes have been duly authenticated by the Trustee in the
manner described in its certificate delivered to you today (which fact such
counsel need not determine by an inspection of the Notes, the Notes have been
duly executed, issued and delivered by the Company.

 

(xi)          The Exchange Notes have been
duly and validly authorized for issuance by the Company.

 

(xii)         The Guarantee by each
Guarantor has been duly and validly authorized by such Guarantor.

 

(xiii)        The Securities and the
Indenture conform as to legal matters in all material respects to the
descriptions thereof contained in the Pricing Disclosure Package and the Final
Offering Memorandum.

 

(xiv)        The documents incorporated
by reference in the Pricing Disclosure Package and the Final Offering
Memorandum (other than the financial statements and supporting schedules
included therein or omitted therefrom, as to which such counsel need express no
opinion), when they were filed with the Commission, complied as to form in all
material respects with the requirements of the Exchange Act.

 

(xv)         The statements in (i) the
Pricing Disclosure Package and the Final Offering Memorandum under the captions
“Risk Factors — Compliance with and changes in environmental and remediation
requirements could result in substantially increased capital requirements and
operating costs,” “Description of the Notes” “Plan of Distribution,” “Notice to
Investors,” (ii) in “Item 1 — Business — Environmental Matters,” “Item 1A
— Risk Factors — Compliance with and changes in environmental and remediation
requirements could result in substantially increased capital requirements and
operating costs” and “Item 3 — Legal Proceedings,” of the Company’s most
recent annual report on Form 10-K, (iii) “Item 1 — Legal Proceedings”
of the Company’s quarterly report on Form 10-Q for the quarter ended September 30,
2009 and (iv) in “Certain Relationships and Related Transactions” of the
Company’s proxy statement for the 2009 annual meeting of shareholders, insofar
as such statements constitute matters of law, summaries of legal matters, the
Company’s articles of incorporation and bylaws or legal proceedings, or legal
conclusions, has been reviewed by such counsel and is correct in all material respects.

 

45

 

(xvi)        The statements in the
Pricing Disclosure Package and the Final Offering Memorandum under the caption “Certain
U.S. Federal Income Tax Considerations,” insofar as such statements constitute
a summary of the U.S. federal tax laws referred to therein, are accurate and
fairly summarize in all material respects the U.S. federal tax laws referred to
therein.

 

(xvii)       No consent, approval,
authorization or order of, or qualification with, any regulatory or
governmental body or agency is required for the performance by the Company or
the Guarantors of their respective obligations under the Purchase Agreement,
the Indenture, the Registration Rights Agreement, the DTC Agreement, the
Securities and Exchange Securities, except such as may be required by the securities
or Blue Sky laws of the various states in connection with the offer and sale of
the Securities and by Federal and state securities laws with respect to the Company’s
and the Guarantors’ obligations under the Registration Rights Agreement.

 

(xviii)      The execution and delivery
by the Company and the Guarantors of, and the performance by the Company and
the Guarantors of their respective obligations under, the Purchase Agreement,
the Indenture, the Registration Rights Agreement, the DTC Agreement, the
Securities and the Exchange Securities, and the consummation by the Company of
the transactions described in the Offering Memorandum, will not contravene any
provision of applicable law or the articles of incorporation or organization or
by laws or operating agreement of the Company or the Guarantors or, to the best
of such counsel’s knowledge, any agreement or other instrument binding upon the
Company or any of the Guarantors that is material to the Company and the
Guarantors, taken as a whole (including, but not limited to, the Credit
Agreement) or, to the best of such counsel’s knowledge, any judgment, order or
decree of any regulatory or governmental body, agency or court having
jurisdiction over the Company or any Guarantor.

 

(xix)        Each of the Company and the
Guarantors are not, and after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof as described in the
Final Offering Memorandum will not be, an “investment company” as such term is
defined in the Investment Company Act of 1940, as amended.

 

(xx)         To the best knowledge of
such counsel, neither the Company nor any of the Guarantors is in violation of
its articles of incorporation or by laws or other operating documents or
operating agreement, as the case may be, or any law, administrative regulation
or administrative or court decree applicable to the Company or any Guarantor or
is in default in the performance or observance of any obligation, agreement,
covenant or condition contained in any agreement or other instrument binding
upon the Company or any Guarantor, except for such defaults as would not,
individually or in the aggregate, result in a Material Adverse Effect.

 

(xxi)        Each of the Company and the
Guarantors has all necessary certificates, orders, permits, licenses,
authorizations, consents and approvals of and from, and has made all
declarations and filings with, all federal, state and local governmental
authorities, all self-regulatory organizations and all courts and tribunals, to
own, 

 

46

 

lease, license and use its properties and assets and to conduct its
business in the manner described in the Pricing Disclosure Package and the
Final Offering Memorandum, and neither the Company nor any Guarantor has
received any notice of proceedings relating to revocation or modification of
any such certificates, orders, permits, licenses, authorizations, consents or
approvals, nor is the Company or any Guarantor in violation of, or in default
under, any federal, state or local law, regulation, rule, decree, order or
judgment applicable to the Company or any Guarantor the effect of which, singly
or in the aggregate, would have a Material Adverse Effect, except as described
in the Pricing Disclosure Package and the Final Offering Memorandum.

 

(xxii)       After due inquiry, such
counsel does not know of any legal or governmental proceedings pending or
threatened to which the Company or any Guarantor is a party or to which any of
the properties of the Company or any Guarantor is subject other than
proceedings fairly summarized in all material respects in the Pricing
Disclosure Package and the Final Offering Memorandum and proceedings which such
counsel believes are not likely to have a Material Adverse Effect, or a material
adverse effect on the power or ability of the Company and the Guarantors to
perform their respective obligations under the Purchase Agreement, the
Indenture, the Registration Rights Agreement, the Securities and the Exchange
Securities or to consummate the transactions contemplated by the Pricing
Disclosure Package and the Final Offering Memorandum.

 

(xxiii)      Assuming the accuracy of the
representations, warranties and covenants of the Company and the Initial
Purchasers contained in the Purchase Agreement, no registration of the Notes or
the Guarantees under the Securities Act, and no qualification of an indenture
under the Trust Indenture Act with respect thereto, is required in connection
with the purchase of the Securities by the Initial Purchasers or the initial
resale of the Securities by the Initial Purchasers in the manner contemplated
by the Purchase Agreement and the Pricing Disclosure Package and the Final Offering
Memorandum other than any registration or qualification that may be required in
connection with the Exchange Offer contemplated by the Pricing Disclosure
Package and the Final Offering Memorandum or in connection with the
Registration Rights Agreement.  Such
counsel need express no opinion, however, as to when or under what
circumstances any Initial Notes initially sold by the Initial Purchasers may be
reoffered or resold.

 

In addition, we have participated in conferences with officers and
other representatives of the Company and the Guarantors, representatives of the
independent public or certified public accountants for the Company and the
Guarantors and with representatives of the Initial Purchasers at which the
contents of the Pricing Disclosure Package and the Final Offering Memorandum
and related matters were discussed and, although we are not passing upon and
does not assume any responsibility for the accuracy, completeness or fairness
of the statements contained in the Pricing Disclosure Package or the Final
Offering Memorandum (other than as specified above), on the basis of the
foregoing, nothing has come to our attention which would lead us to believe
that the Pricing Disclosure Package, as of the 

 

47

 

Time
of Sale, or that the Final Offering Memorandum, as of its date or at the
Closing Date, contained or contains an untrue statement of a material fact or
omitted or omits to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading (it being understood that we need express no belief as to
the financial statements or other financial data derived therefrom, included in
the Pricing Disclosure Package or the Final Offering Memorandum or any
amendments or supplements thereto).

 

48

 

EXHIBIT A-2

 

Form of opinion of Greenberg Traurig, LLP to be delivered pursuant
to Section 6(c)(2) of the Purchase Agreement.

 

1.             John W. Hancock, Jr.,
LLC (“Hancock”) is a limited liability company duly formed, validly existing
and in good standing under the laws of the Commonwealth of Virginia.

 

2.             Each of the
Purchase Agreement, the Registration Rights Agreement and the Indenture has
been duly authorized, executed and delivered by Hancock.

 

49

 

EXHIBIT A-3

 

Form of opinion of Greenberg Traurig, LLP to be delivered pursuant
to Section 6(c)(3) of the Purchase Agreement.

 

1.             The Indenture
is a valid and binding agreement of the Company and the Guarantors, enforceable
against the Company and each Guarantor in accordance with its terms.

 

2.             The Notes are
valid and binding obligations of the Company, enforceable in accordance with
their terms, and entitled to the benefits of the Indenture applicable to the
Notes.

 

3.             The Guarantees
are valid and binding obligations of the Guarantors, enforceable in accordance
with their terms.

 

4.             The
Registration Rights Agreement is a valid and binding agreement of each of the
Company and the Guarantors, enforceable against the Company and each Guarantor
in accordance with its terms.

 

50

 

EXHIBIT A-4

 

Opinion of Wyche, Burgess, Freeman & Parham, P.A. to be
delivered pursuant to Section 6(c)(4) of the Purchase Agreement.

 

1.             Carolinas is a
limited liability company duly formed, validly existing and in good standing
under the laws of the State of South Carolina.

 

2.             New Millennium
is a corporation duly incorporated, validly existing and in good standing under
the laws of the State of South Carolina.

 

3.             Each of Cohen,
Lumberton and Raeford is a corporation duly incorporated, validly existing and
in good standing under the laws of the State of North Carolina.

 

4.             Each of the Purchase
Agreement, the Indenture and the Registration Rights Agreement has been duly
authorized, executed and delivered by each of Carolinas, New Millennium,
Atlantic Scrap, Cohen, Lumberton and Raeford.

 

51Exhibit 4.13

 

EXECUTION VERSION

 

REGISTRATION RIGHTS AGREEMENT

 

THIS
REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is made and entered into
March 17, 2010, among STEEL DYNAMICS, INC., an Indiana corporation (the “Company”),
the subsidiaries of the Company listed on Schedule I hereto (the “Guarantors”)
and BANC OF AMERICA SECURITIES LLC, GOLDMAN, SACHS & CO., J.P. MORGAN
SECURITIES INC. AND MORGAN STANLEY & CO. INCORPORATED (the “Initial
Purchasers”).

 

This
Agreement is made pursuant to the Purchase Agreement, dated March 11,
2010, among the Company, the Initial Purchasers and the Guarantors (the “Purchase
Agreement”), which provides for the sale by the Company to the Initial
Purchasers of an aggregate of $350,000,000 principal amount of the Company’s 7
5/8% Senior Notes due 2020  (the “Securities”).  The Securities will be fully and
unconditionally guaranteed on a senior unsecured basis by the Guarantors.  In order to induce the Initial Purchasers to
enter into the Purchase Agreement, the Company and the Guarantors agreed to
provide to the Initial Purchasers and their direct and indirect transferees the
registration rights set forth in this Agreement.  The execution of this Agreement is a
condition to the closing under the Purchase Agreement.

 

In
consideration of the foregoing, the parties hereto agree as follows:

 

1.                                       Definitions.

 

As
used in this Agreement, the following capitalized defined terms shall have the
following meanings:

 

“1933
Act” shall mean the Securities Act of 1933, as amended from time to time.

 

“1934 Act”
shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

“Closing Date”
shall mean the Closing Date as defined in the Purchase Agreement.

 

“Company”
shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

 

“DTC” The
Depository Trust Company, New York, New York.

 

1

 

“Exchange Offer”
shall mean the exchange offer by the Company of Exchange Securities for
Registrable Securities pursuant to Section 2(a) hereof.

 

“Exchange Offer
Registration” shall mean a registration under the 1933 Act effected
pursuant to Section 2(a) hereof.

 

“Exchange Offer
Registration Statement” shall mean an exchange offer registration statement
on Form S-4 (or, if applicable, on another appropriate form) and all
amendments and supplements to such registration statement, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

 

“Exchange
Securities” shall mean securities issued by the Company and guaranteed by
the Guarantors under the Indenture containing terms identical to the Securities
(except that (i) interest thereon shall accrue from the last date on which
interest was paid on the Securities or, if no such interest was paid, March 17,
2010, (ii) the Exchange Securities will not contain restrictions on
transfer, and (iii) the Exchange Securities are not entitled to Additional
Interest) and to be offered to Holders of Securities in exchange for Securities
pursuant to the Exchange Offer.

 

“Free Writing
Prospectus” shall mean each free writing prospectus (as defined in Rule 405
under the 1933 Act) prepared by or on behalf of the Company or used by the
Company in connection with the Registrable Securities or the Exchange
Securities.

 

“Guarantors”
shall have the meaning set forth in the preamble and shall also include any
Guarantor’s successor.

 

“Holder”
shall mean the Initial Purchasers, for so long as they own any Registrable
Securities, and each of their successors, assigns and direct and indirect
transferees who become registered owners of Registrable Securities under the
Indenture; provided that for purposes of Sections 4 and 5 of this
Agreement, the term “Holder” shall include Participating Broker-Dealers (as
defined in Section 4(a)).

 

“Indenture”
shall mean the Indenture relating to the Securities dated as of March 17,
2010, among the Company, the Guarantors and Wells Fargo Bank, National
Association, as trustee, and as the same may be amended from time to time in
accordance with the terms thereof.

 

“Initial
Purchasers” shall have the meaning set forth in the preamble.

 

“Issuer
Information” shall mean material information about the Company, the
Guarantors or any of their respective securities that has been provided by or
on behalf of the Company and/or the Guarantors.

 

“Majority
Holders” shall mean the Holders of a majority of the aggregate principal
amount of outstanding Registrable Securities; provided that whenever the
consent or approval of Holders of a specified percentage of Registrable
Securities is 

 

2

 

required
hereunder, Registrable Securities held by the Company or any of its affiliates
(as such term is defined in Rule 405 under the 1933 Act) (other than the
Initial Purchasers or subsequent Holders of Registrable Securities if such
subsequent holders are deemed to be such affiliates solely by reason of their
holding of such Registrable Securities) shall not be counted in determining
whether such consent or approval was given by the Holders of such required
percentage or amount.

 

“Person”
shall mean an individual, partnership, limited liability company, corporation,
trust or unincorporated organization, or a government or agency or political
subdivision thereof.

 

“Purchase
Agreement” shall have the meaning set forth in the preamble.

 

“Prospectus”
shall mean the prospectus included in a Registration Statement, including any
preliminary prospectus, and any such prospectus as amended or supplemented by
any prospectus supplement, including a prospectus supplement with respect to
the terms of the offering of any portion of the Registrable Securities covered
by a Shelf Registration Statement, and by all other amendments and supplements
to such prospectus, and in each case including all material incorporated by
reference therein.

 

“Registrable
Securities” shall mean the Securities and the guarantee thereof by the
Guarantors; provided, however, that the Securities and the
guarantee shall cease to be Registrable Securities (i) when such
Securities are exchanged for Exchange Securities, (ii) when a Registration
Statement with respect to such Securities and the guarantee shall have been
declared effective under the 1933 Act and such Securities and the guarantee
shall have been disposed of pursuant to such Registration Statement, (iii) when
such Securities and the guarantee have been sold to the public following the
expiration of the one-year period applicable to securities held by
non-affiliates referred to in Rule 144 under the 1933 Act or (iv) when
such Securities and the guarantee shall have otherwise ceased to be
outstanding.

 

“Registration
Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company and the Guarantors with this Agreement, including
without limitation:  (i) all SEC,
stock exchange or Financial Industry Regulatory Authority, Inc.
registration and filing fees, (ii) all fees and expenses incurred in
connection with compliance with state securities or blue sky laws (including
reasonable fees and disbursements of counsel for any underwriters or Holders in
connection with blue sky qualification of any of the Exchange Securities or
Registrable Securities), (iii) all expenses of any Persons in preparing or
assisting in preparing, word processing, printing and distributing any
Registration Statement, any Prospectus, any amendments or supplements thereto,
any underwriting agreements, securities sales agreements and other documents
relating to the performance of and compliance with this Agreement, (iv) all
rating agency fees, (v) all fees and disbursements relating to the
qualification of the Indenture under applicable securities laws, (vi) the
fees and disbursements of the Trustee and its counsel, (vii) the fees and
disbursements of counsel for the Company and the Guarantors and, in the case of
a Shelf Registration Statement, the fees and disbursements 

 

3

 

of one counsel for
the Holders (which counsel shall be selected by the Majority Holders and which
counsel may also be counsel for the Initial Purchaser) and (viii) the fees
and disbursements of the independent public accountants of the Company and the
Guarantors, including the expenses of any special audits or “cold comfort”
letters required by or incident to such performance and compliance, but
excluding fees and expenses of counsel to the underwriters (other than fees and
expenses set forth in clause (ii) above) or the Holders and underwriting
discounts and commissions and transfer taxes, if any, relating to the sale or
disposition of Registrable Securities by a Holder.

 

“Registration
Statement” shall mean any registration statement of the Company and the
Guarantors that covers any of the Exchange Securities or Registrable Securities
pursuant to the provisions of this Agreement and all amendments and supplements
to any such Registration Statement, including post-effective amendments, in
each case including the Prospectus contained therein, all exhibits thereto and
all material incorporated by reference therein.

 

“SEC” shall
mean the Securities and Exchange Commission.

 

“Shelf
Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

 

“Shelf
Registration Statement” shall mean a “shelf” registration statement of the
Company and the Guarantors pursuant to the provisions of Section 2(b) of
this Agreement which covers all of the Registrable Securities on an appropriate
form under Rule 415 under the 1933 Act, or any similar rule that may
be adopted by the SEC, and all amendments and supplements to such registration
statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all material
incorporated by reference therein.

 

“Trustee”
shall mean the trustee with respect to the Securities under the Indenture.

 

“Underwriter”
shall have the meaning set forth in Section 3 hereof.

 

“Underwritten
Registration” or “Underwritten Offering” shall mean a registration
in which Registrable Securities are sold to an Underwriter for reoffering to
the public.

 

2.                                       Registration Under the 1933 Act.

 

(a)                                  To the extent not prohibited by any applicable law or
applicable interpretation of the Staff of the SEC, the Company and the
Guarantors shall use their reasonable best efforts to cause to be filed an
Exchange Offer Registration Statement covering the offer by the Company and the
Guarantors to the Holders to exchange all of the Registrable Securities for
Exchange Securities and to have such Registration Statement remain effective
until the closing of the Exchange Offer. 
The Company and the Guarantors shall commence the Exchange Offer
promptly after the Exchange Offer Registration Statement has been declared
effective by the SEC and use its reasonable best efforts to have the Exchange
Offer consummated not later than 60 days after such effective date.  The Company and the Guarantors shall commence
the 

 

4

 

Exchange
Offer by mailing the related exchange offer Prospectus and accompanying
documents to each Holder, through DTC or otherwise, stating in such Prospectus
or accompanying documents, in addition to such other disclosures as are
required by applicable law:

 

(i)                                     that the
Exchange Offer is being made pursuant to this Registration Rights Agreement and
that all Registrable Securities validly tendered and not withdrawn will be
accepted for exchange;

 

(ii)                                  the dates of
acceptance for exchange (which shall be a period of at least 20 business days
from the date such notice is mailed) (the “Exchange Dates”);

 

(iii)                               that any
Registrable Security not tendered will remain outstanding and continue to
accrue interest, but will not retain any rights under this Registration Rights
Agreement;

 

(iv)                              that Holders
electing to have a Registrable Security exchanged pursuant to the Exchange
Offer will be required to surrender such Registrable Security, together with
the enclosed letters of transmittal, to the institution and at the address
(located in the Borough of Manhattan, The City of New York) specified in the
notice prior to the close of business on the last Exchange Date; and

 

(v)                                 that Holders
will be entitled to withdraw their election, not later than the close of
business on the last Exchange Date, by sending to the institution and at the
address (located in the Borough of Manhattan, The City of New York) specified
in the notice a telegram, facsimile transmission or letter setting forth the
name of such Holder, the principal amount of Registrable Securities delivered
for exchange and a statement that such Holder is withdrawing his election to
have such Securities exchanged.

 

As
soon as practicable after the last Exchange Date, the Company shall:

 

(i)                                     accept for exchange Registrable
Securities or portions thereof tendered and not validly withdrawn pursuant to
the Exchange Offer; and

 

(ii)                                  deliver, or cause to be delivered, to the
Trustee for cancellation all Registrable Securities or portions thereof so
accepted for exchange by the Company and issue, and cause the Trustee to
promptly authenticate and mail to each Holder, an Exchange Security equal in
principal amount to the principal amount of the Registrable Securities
surrendered by such Holder.

 

The Company and the Guarantors shall use their reasonable best efforts
to complete the Exchange Offer as provided above and shall comply with the
applicable requirements of the 1933 Act, the 1934 Act and other applicable laws
and regulations in connection with the Exchange Offer.  The Exchange Offer shall not be subject to
any conditions, other than that the Exchange Offer does not violate applicable
law or any applicable interpretation of the Staff of the SEC.  The Company shall inform the Initial
Purchasers of the names and addresses of the Holders to whom the Exchange Offer
is made, and the Initial Purchasers shall have the right, 

 

5

 

subject to applicable law, to contact such Holders and otherwise
facilitate the tender of Registrable Securities in the Exchange Offer.

 

If the Company and the Guarantors effect the Exchange Offer, the
Company and the Guarantors shall be entitled to close the Exchange Offer twenty
(20) business days after such commencement (provided that the Company and the
Guarantors have accepted all the Securities theretofore validly tendered and
not withdrawn in accordance with the terms of the Exchange Offer).

 

Each Holder participating in the Exchange Offer shall be required to
represent to the Company and the Guarantors in writing that at the time of the
consummation of the Exchange Offer (i) any Exchange Securities received by
such Holder will be acquired in the ordinary course of business, (ii) such
Holder will have no arrangements or understanding with any Person to
participate in the distribution (within the meaning of the 1933 Act) of the
Exchange Securities and (iii) such Holder is not affiliate of either the
Company or any of the Guarantors within the meaning of Rule 405 under the
1933 Act, (iv) if such Holder is not a broker dealer, that it is not
engaged in and does not intend to engage in, the distribution of the Exchange
Securities and (v) if such Holder is a broker dealer, that it will receive
Exchange Securities for its own account in exchange for Securities that were
acquired as a result of market making activities or other trading activities
and that it will be required to acknowledge that it will deliver a prospectus
in connection with the resale of such Exchange Securities.

 

(b)                                 In the event that (i) the Company and the Guarantors
determine that the Exchange Offer Registration provided for in Section 2(a) above
is not available or may not be consummated as soon as practicable after the
last Exchange Date because it would violate applicable law or the applicable
interpretations of the Staff of the SEC, (ii) the Exchange Offer is not
for any other reason consummated by March 17, 2011 or (iii) the
Exchange Offer has been completed and in the opinion of counsel for the Initial
Purchasers a Registration Statement must be filed and a Prospectus must be
delivered by the Initial Purchasers in connection with any offering or sale of
Registrable Securities, the Company and the Guarantors shall use their
reasonable best efforts to cause to be filed as soon as practicable after such
determination, date or notice of such opinion of counsel is given to the
Company, as the case may be, a Shelf Registration Statement providing for the
sale by the Holders of all of the Registrable Securities and to have such Shelf
Registration Statement declared effective by the SEC.  In the event the Company and the Guarantors
are required to file a Shelf Registration Statement solely as a result of the
matters referred to in clause (iii) of the preceding sentence, the Company
and the Guarantors shall use their reasonable best efforts to file and have
declared effective by the SEC both an Exchange Offer Registration Statement
pursuant to Section 2(a) with respect to all Registrable Securities
and a Shelf Registration Statement (which may be a combined Registration
Statement with the Exchange Offer Registration Statement) with respect to
offers and sales of Registrable Securities held by the Initial Purchasers after
completion of the Exchange Offer.  The
Company and the Guarantors agree to use their reasonable best efforts to keep
the Shelf Registration Statement continuously effective until the expiration of
the one-year period applicable to securities held by non-affiliates referred to
in Rule 144  under the Securities
Act or such shorter period that will terminate when all of the Registrable
Securities covered by the Shelf Registration Statement have been sold pursuant
to the Shelf Registration Statement. 

 

6

 

The
Company and the Guarantors further agree to supplement or amend the Shelf
Registration Statement if required by the rules, regulations or instructions
applicable to the registration form used by the Company and the Guarantors for
such Shelf Registration Statement or by the 1933 Act or by any other rules and
regulations thereunder for shelf registration or if reasonably requested by a
Holder with respect to information relating to such Holder, and to use its
reasonable best efforts to cause any such amendment to become effective and
such Shelf Registration Statement to become usable as soon as thereafter
practicable.  The Company and the
Guarantors agree to furnish to the Holders of Registrable Securities copies of
any such supplement or amendment promptly after its being used or filed with
the SEC.  To the extent that the Company
and the Guarantors are required to include any Registrable Securities in a
Shelf Registration Statement, the Company and the Guarantors may include such
Registrable Securities on any other shelf registration statement otherwise
filed by the Company with respect to any of its other securities.

 

(c)                                  The Company and the Guarantors shall pay all Registration
Expenses in connection with the registration pursuant to Section 2(a) and
Section 2(b).  Each Holder shall pay
all underwriting discounts and commissions and transfer taxes, if any, relating
to the sale or disposition of such Holder’s Registrable Securities pursuant to
the Shelf Registration Statement.

 

(d)                                 An Exchange Offer Registration Statement pursuant to Section 2(a) hereof
or a Shelf Registration Statement pursuant to Section 2(b) hereof
will not be deemed to have become effective unless it has been declared
effective by the SEC; provided, however, that, if, after it has
been declared effective, the offering of Registrable Securities pursuant to a
Shelf Registration Statement is interfered with by any stop order, injunction
or other order or requirement of the SEC or any other governmental agency or
court, such Registration Statement will be deemed not to have become effective
during the period of such interference until the offering of Registrable
Securities pursuant to such Registration Statement may legally resume.  In the event the Exchange Offer is not
consummated and the Shelf Registration Statement is not declared effective on
or prior to March 17, 2011, the interest rate on the Securities will be
increased by .5% per annum until the Exchange Offer is consummated or the Shelf
Registration Statement is declared effective by the SEC.

 

(e)                                  Without limiting the remedies available to the Initial
Purchasers and the Holders, the Company and the Guarantors acknowledge that any
failure by the Company or the Guarantors to comply with their obligations under
Section 2(a) and Section 2(b) hereof may result in material
irreparable injury to the Initial Purchasers or the Holders for which there is
no adequate remedy at law, that it will not be possible to measure damages for
such injuries precisely and that, in the event of any such failure, the Initial
Purchasers or any Holder may obtain such relief as may be required to specifically
enforce the Company’s  or the Guarantors’
obligations under Section 2(a) and Section 2(b) hereof.

 

3.                                       Registration Procedures.

 

In
connection with the obligations of the Company and the Guarantors with respect
to the Registration Statements pursuant to Section 2(a) and Section 2(b) hereof,
the Company and the Guarantors shall as expeditiously as possible:

 

7

 

(a)                                  prepare and file with the SEC a Registration Statement on
the appropriate form under the 1933 Act, which form (x) shall be selected
by the Company and the Guarantors and (y) shall, in the case of a Shelf
Registration, be available for the sale of the Registrable Securities by the
selling Holders thereof and (z) shall comply as to form in all material
respects with the requirements of the applicable form and include all financial
statements required by the SEC to be filed therewith, and use their reasonable
best efforts to cause such Registration Statement to become effective and
remain effective in accordance with Section 2 hereof;

 

(b)                                 prepare and file with the SEC such amendments and
post-effective amendments to each Registration Statement as may be necessary to
keep such Registration Statement effective for the applicable period and cause
each Prospectus to be supplemented by any required prospectus supplement and,
as so supplemented, to be filed pursuant to Rule 424 under the 1933 Act;
to keep each Prospectus current during the period described under Section 4(3) and
Rule 174 under the 1933 Act that is applicable to transactions by brokers
or dealers with respect to the Registrable Securities or Exchange Securities;

 

(c)                                  in the case of a Shelf Registration, furnish to each Holder
of Registrable Securities, to counsel for the Initial Purchasers, to counsel
for the Holders and to each Underwriter of an Underwritten Offering of
Registrable Securities, if any, without charge, as many copies of each
Prospectus, including each preliminary Prospectus, and any amendment or
supplement thereto and such other documents as such Holder or Underwriter may
reasonably request, in order to facilitate the public sale or other disposition
of the Registrable Securities; and the Company and the Guarantors consent to
the use of such Prospectus and any amendment or supplement thereto in
accordance with applicable law by each of the selling Holders of Registrable
Securities and any such Underwriters in connection with the offering and sale
of the Registrable Securities covered by and in the manner described in such
Prospectus or any amendment or supplement thereto in accordance with applicable
law;

 

(d)                                 use its reasonable best efforts to register or qualify the
Registrable Securities under all applicable state securities or “blue sky” laws
of such jurisdictions as any Holder of Registrable Securities covered by a
Registration Statement shall reasonably request in writing by the time the
applicable Registration Statement is declared effective by the SEC, to
cooperate with such Holders in connection with any filings required to be made
with the Financial Industry Regulatory Authority, Inc. and do any and all
other acts and things which may be reasonably necessary or advisable to enable
such Holder to consummate the disposition in each such jurisdiction of such
Registrable Securities owned by such Holder; provided, however,
that neither the Company nor any Guarantor shall be required to (i) qualify
as a foreign corporation or as a dealer in securities in any jurisdiction where
it would not otherwise be required to qualify but for this Section 3(d), (ii) file
any general consent to service of process or (iii) subject itself to
taxation in any such jurisdiction if it is not so subject;

 

8

 

 

(e)                                  in the case of a Shelf Registration, notify each Holder of
Registrable Securities who has provided contact information to the Company,
counsel for the Holders and counsel for the Initial Purchasers promptly and, if
requested by any such Holder or counsel, confirm such advice in writing (i) when
a Registration Statement has become effective and when any post-effective
amendment thereto has been filed and becomes effective, (ii) of any
request by the SEC or any state securities authority for amendments and
supplements to a Registration Statement and Prospectus or for additional
information after the Registration Statement has become effective, (iii) of
the issuance by the SEC or any state securities authority of any stop order
suspending the effectiveness of a Registration Statement or the initiation of
any proceedings for that purpose, (iv) if, between the effective date of a
Registration Statement and the closing of any sale of Registrable Securities
covered thereby, the representations and warranties of the Company or any
Guarantor contained in any underwriting agreement, securities sales agreement
or other similar agreement, if any, relating to the offering cease to be true
and correct in all material respects or if the Company or any Guarantor receives
any notification with respect to the suspension of the qualification of the
Registrable Securities for sale in any jurisdiction or the initiation of any
proceeding for such purpose, (v) of the happening of any event during the
period a Shelf Registration Statement is effective which makes any statement
made in such Registration Statement or the related Prospectus untrue in any
material respect or which requires the making of any changes in such
Registration Statement or Prospectus in order to make the statements therein
not misleading and (vi) of any determination by the Company or any
Guarantor that a post-effective amendment to a Registration Statement would be
appropriate;

 

(f)                                    make every reasonable effort to obtain the withdrawal of any
order suspending the effectiveness of a Registration Statement at the earliest
possible moment and provide immediate notice to each Holder of the withdrawal
of any such order;

 

(g)                                 in the case of a Shelf Registration, furnish to each Holder
of Registrable Securities, without charge, at least one conformed copy of each
Registration Statement and any post-effective amendment thereto (without
documents incorporated therein by reference or exhibits thereto, unless
requested);

 

(h)                                 in the case of a Shelf Registration, cooperate with the
selling Holders of Registrable Securities to facilitate the timely preparation
and delivery of certificates representing Registrable Securities to be sold and
not bearing any restrictive legends and enable such Registrable Securities to
be in such denominations (consistent with the provisions of the Indenture) and
registered in such names as the selling Holders may reasonably request at least
one business day prior to the closing of any sale of Registrable Securities;

 

(i)                                     in the case of a Shelf Registration, upon the occurrence of
any event contemplated by Section 3(e)(v) hereof, use its reasonable
best efforts to prepare and file with the SEC a supplement or post-effective
amendment to a Registration Statement or the related Prospectus or any document
incorporated therein by reference or file any other required document so that,
as thereafter delivered to the purchasers of the Registrable 

 

9

 

Securities,
such Prospectus will not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading.  The Company and the Guarantors agree to
notify the Holders to suspend use of the Prospectus as promptly as practicable
after the occurrence of such an event, and the Holders hereby agree to suspend
use of the Prospectus until the Company and the Guarantors have amended or
supplemented the Prospectus to correct such misstatement or omission;

 

(j)                                     a reasonable time prior to the filing of any Registration
Statement, any Prospectus, any amendment to a Registration Statement or
amendment or supplement to a Prospectus or any document which is to be
incorporated by reference into a Registration Statement or a Prospectus after
initial filing of a Registration Statement, provide copies of such document to
the Initial Purchasers and their counsel (and, in the case of a Shelf
Registration Statement, the Holders and their counsel) and make such of the
representatives of the Company and the Guarantors as shall be reasonably
requested by the Initial Purchasers or their counsel (and, in the case of a
Shelf Registration Statement, the Holders or their counsel) available for
discussion of such document, and shall not at any time file or make any
amendment to the Registration Statement, any Prospectus or any amendment of or
supplement to a Registration Statement or a Prospectus or any document which is
to be incorporated by reference into a Registration Statement or a Prospectus,
of which the Initial Purchasers and their counsel (and, in the case of a Shelf
Registration Statement, the Holders and their counsel) shall not have
previously been advised and furnished a copy or to which the Initial Purchasers
or their counsel (and, in the case of a Shelf Registration Statement, the
Holders or their counsel) shall object;

 

(k)                                  obtain a CUSIP number for all Exchange Securities or
Registrable Securities, as the case may be, not later than the effective date
of a Registration Statement;

 

(l)                                     cause the Indenture to be qualified under the Trust
Indenture Act of 1939, as amended (the “TIA”), in connection with the
registration of the Exchange Securities or Registrable Securities, as the case
may be, cooperate with the Trustee and the Holders to effect such changes to
the Indenture as may be required for the Indenture to be so qualified in
accordance with the terms of the TIA and execute, and use its reasonable best
efforts to cause the Trustee to execute, all documents as may be required to
effect such changes and all other forms and documents required to be filed with
the SEC to enable the Indenture to be so qualified in a timely manner;

 

(m)                               in the case of a Shelf Registration, make available for
inspection by a representative of the Holders of the Registrable Securities,
any Underwriter participating in any disposition pursuant to such Shelf
Registration Statement, and attorneys and accountants designated by the
Holders, at reasonable times and in a reasonable manner, all financial and
other records, pertinent documents and properties of the Company and the
Guarantors, and cause the respective officers, directors and employees of the
Company and the Guarantors to supply all information reasonably requested by any
such 

 

10

 

representative,
Underwriter, attorney or accountant in connection with a Shelf Registration
Statement;

 

(n)                                 in the case of a Shelf Registration, use its reasonable best
efforts to cause all Registrable Securities to be listed on any securities
exchange or any automated quotation system on which similar securities issued
by the Company or any Guarantor are then listed if requested by the Majority
Holders, to the extent such Registrable Securities satisfy applicable listing
requirements;

 

(o)                                 use its best efforts to cause the Registrable Securities or
the Exchange Securities, as the case may be, to continue to be rated by two
nationally recognized statistical rating organizations (as such term is defined
in Rule 436(g)(2) under the 1933 Act);

 

(p)                                 if reasonably requested by any Holder of Registrable
Securities covered by a Registration Statement, (i) promptly incorporate
in a Prospectus supplement or post-effective amendment such information with
respect to such Holder as such Holder reasonably requests to be included
therein and (ii) make all required filings of such Prospectus supplement
or such post-effective amendment as soon as the Company has received
notification of the matters to be incorporated in such filing; and

 

(q)                                 in the case of a Shelf Registration, enter into such
customary agreements and take all such other actions in connection therewith
(including those requested by the Holders of a majority of the Registrable
Securities being sold) in order to expedite or facilitate the disposition of
such Registrable Securities including, but not limited to, an Underwritten
Offering and in such connection, (i) to the extent possible, make such
representations and warranties to the Holders and any Underwriters of such
Registrable Securities with respect to the business of the Company and its
subsidiaries, the Registration Statement, Prospectus and documents incorporated
by reference or deemed incorporated by reference, if any, in each case, in
form, substance and scope as are customarily made by issuers to underwriters in
underwritten offerings and confirm the same if and when requested, (ii) obtain
opinions of counsel to the Company and the Guarantors (which counsel and
opinions, in form, scope and substance, shall be reasonably satisfactory to the
Holders and such Underwriters and their respective counsel) addressed to each
selling Holder and Underwriter of Registrable Securities, covering the matters
customarily covered in opinions requested in connection with underwritten firm
commitment offerings, (iii) obtain “cold comfort” letters from the
independent certified public accountants of the Company and the Guarantors
(and, if necessary, any other certified public accountant of any subsidiary of
the Company or any Guarantor, or of any business acquired by the Company or any
Guarantor for which financial statements and financial data are or are required
to be included in the Registration Statement) addressed to each selling Holder
and Underwriter of Registrable Securities, such letters to be in customary form
and covering matters of the type customarily covered in “cold comfort” letters
in connection with underwritten firm commitment offerings, and (iv) deliver
such documents and certificates as may be reasonably requested by the Holders
of a majority in principal amount of the Registrable 

 

11

 

Securities
being sold or the Underwriters, and which are customarily delivered in
underwritten offerings, to evidence the continued validity of the
representations and warranties of the Company and the Guarantors made pursuant
to clause (i) above and to evidence compliance with any customary
conditions contained in an underwriting agreement.

 

In the
case of a Shelf Registration Statement, the Company and the Guarantors may
require each Holder of Registrable Securities to furnish to the Company and the
Guarantors such information regarding the Holder and the proposed distribution
by such Holder of such Registrable Securities as the Company and the Guarantors
may from time to time reasonably request in writing.

 

In the
case of a Shelf Registration Statement, each Holder agrees that, upon receipt
of any notice from the Company and the Guarantors of the happening of any event
of the kind described in Section 3(e)(v) hereof, such Holder will
forthwith discontinue disposition of Registrable Securities pursuant to a
Registration Statement until such Holder’s receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 3(i) hereof,
and, if so directed by the Company and the Guarantors, such Holder will deliver
to the Company and the Guarantors (at its expense) all copies in its
possession, other than permanent file copies then in such Holder’s possession, of
the Prospectus covering such Registrable Securities current at the time of
receipt of such notice.  If the Company
and the Guarantors shall give any such notice to suspend the disposition of
Registrable Securities pursuant to a Registration Statement, the Company and
the Guarantors shall extend the period during which the Registration Statement
shall be maintained effective pursuant to this Agreement by the number of days
during the period from and including the date of the giving of such notice to
and including the date when the Holders shall have received copies of the
supplemented or amended Prospectus necessary to resume such dispositions.  The Company and the Guarantors may give any
such notice only twice during any 365-day period and any such suspensions may
not exceed 30 days for each suspension and there may not be more than two
suspensions in effect during any 365-day period.

 

The
Holders of Registrable Securities covered by a Shelf Registration Statement who
desire to do so may sell such Registrable Securities in an Underwritten
Offering.  In any such Underwritten
Offering, the investment banker or investment bankers and manager or managers
(the “Underwriters”) that will administer the offering will be selected
by the Majority Holders of the Registrable Securities included in such
offering.

 

4.                                       Participation of Broker-Dealers in Exchange Offer.

 

(a)                                  The Staff of the SEC has taken the position that any
broker-dealer that receives Exchange Securities for its own account in the
Exchange Offer in exchange for Securities that were acquired by such
broker-dealer as a result of market-making or other trading activities (a “Participating
Broker-Dealer”), may be deemed to be an “underwriter” within the meaning of
the 1933 Act and must deliver a prospectus meeting the requirements of the 1933
Act in connection with any resale of such Exchange Securities.

 

The
Company and the Guarantors understand that it is the Staff’s position that if
the Prospectus contained in the Exchange Offer Registration Statement includes
a plan of 

 

12

 

distribution containing a statement to the above
effect and the means by which Participating Broker-Dealers may resell the
Exchange Securities, without naming the Participating Broker-Dealers or
specifying the amount of Exchange Securities owned by them, such Prospectus may
be delivered by Participating Broker-Dealers to satisfy their prospectus
delivery obligation under the 1933 Act in connection with resales of Exchange
Securities for their own accounts, so long as the Prospectus otherwise meets
the requirements of the 1933 Act.

 

(b)                                 In light of the above, notwithstanding the other provisions
of this Agreement, the Company and the Guarantors agree that the provisions of
this Agreement as they relate to a Shelf Registration shall also apply to an
Exchange Offer Registration to the extent, and with such reasonable
modifications thereto as may be, reasonably requested by the Initial Purchasers
or by one or more Participating Broker-Dealers, in each case as provided in
clause (ii) below, in order to expedite or facilitate the disposition of
any Exchange Securities by Participating Broker-Dealers consistent with the
positions of the Staff recited in Section 4(a) above; provided
that:

 

(i)                                     the Company and
the Guarantors shall not be required to amend or supplement the Prospectus
contained in the Exchange Offer Registration Statement, as would otherwise be
contemplated by Section 3(i), (A) after the Participating
Broker-Dealers shall have disposed of the Registrable Securities or (B) for
a period exceeding 180 days after the last Exchange Date (as such period may be
extended pursuant to the penultimate paragraph of Section 3 of this
Agreement) and Participating Broker-Dealers shall not be authorized by the
Company and the Guarantors to deliver and shall not deliver such Prospectus
after such period in connection with the resales contemplated by this Section 4;
and

 

(ii)                                  the application
of the Shelf Registration procedures set forth in Section 3 of this
Agreement to an Exchange Offer Registration, to the extent not required by the
positions of the Staff of the SEC or the 1933 Act and the rules and
regulations thereunder, will be in conformity with the reasonable request to
the Company and the Guarantors by the Initial Purchasers or with the reasonable
request in writing to the Company and the Guarantors by one or more
broker-dealers who certify to the Initial Purchasers and the Company and the
Guarantors in writing that they anticipate that they will be Participating
Broker-Dealers; and provided  further that, in connection with
such application of the Shelf Registration procedures set forth in Section 3
to an Exchange Offer Registration, the Company and the Guarantors shall be
obligated (x) to deal only with one entity representing the Participating
Broker-Dealers, which shall be Banc of America Securities LLC unless it elects
not to act as such representative, (y) to pay the fees and expenses of
only one counsel representing the Participating Broker-Dealers, which shall be
counsel to the Initial Purchasers unless such counsel elects not to so act and (z) to
cause to be delivered only one, if any, “cold comfort” letter with respect to
the Prospectus in the form existing on the last Exchange Date and with respect
to each subsequent amendment or supplement, if any, effected during the period
specified in clause (i) above.

 

13

 

(c)                                  The Initial Purchasers shall have no liability to the
Company, any Guarantor or any Holder with respect to any request that it may
make pursuant to Section 4(b) above.

 

5.                                       Indemnification and Contribution.

 

(a)                                  Each of the Company and the Guarantors agrees, jointly and
severally, to indemnify and hold harmless the Initial Purchasers and each
Holder, their respective affiliates, directors and officers  and each Person, if any, who controls any
Initial Purchasers or any Holder within the meaning of either Section 15
of the 1933 Act or Section 20 of the 1934 Act, or is under common control
with, or is controlled by, any Initial Purchasers or any Holder, from and
against all losses, claims, damages and liabilities (including, without
limitation, any legal or other expenses reasonably incurred by the Initial
Purchaser, any Holder and their respective affiliates, directors and officers
or any such controlling or affiliated Person in connection with defending or
investigating any such action or claim) caused by any untrue statement or
alleged untrue statement of a material fact contained in any Registration
Statement (or any amendment thereto) pursuant to which Exchange Securities or
Registrable Securities were registered under the 1933 Act, including all
documents incorporated therein by reference, or caused by any omission or
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, or caused by any
untrue statement or alleged untrue statement of a material fact contained in
any Prospectus (as amended or supplemented if the Company and the Guarantors
shall have furnished any amendments or supplements thereto), any Free Writing
Prospectus or any Issuer Information filed or required to be filed pursuant to Rule 433(d) under
the 1933 Act, or caused by any omission or alleged omission to state therein a
material fact necessary to make the statements therein in the light of the
circumstances under which they were made not misleading, except insofar as such
losses, claims, damages or liabilities are caused by any such untrue statement
or omission or alleged untrue statement or omission based upon information
relating to the Initial Purchasers or any Holder furnished to the Company or
the Guarantors in writing through Banc of America Securities LLC or any selling
Holder expressly for use therein.  In
connection with any Underwritten Offering permitted by Section 3, the
Company and each of the Guarantors, jointly and severally, will also indemnify
the Underwriters, if any, selling brokers, dealers and similar securities
industry professionals participating in the distribution, their affiliates,
officers and directors and each Person who controls such Persons (within the
meaning of the 1933 Act and the 1934 Act) to the same extent as provided above
with respect to the indemnification of the Holders, if requested in connection
with any Registration Statement, any Prospectus, any Free Writing Prospectus or
any Issuer Information.

 

(b)                                 Each Holder agrees, severally and not jointly, to indemnify
and hold harmless the Company, the Guarantors, the Initial Purchasers and the
other selling Holders, and each of their respective directors, officers who
sign the Registration Statement and each Person, if any, who controls the
Company, the Guarantors, any Initial Purchaser and any other selling Holder
within the meaning of either Section 15 of the 1933 Act or Section 20
of the 1934 Act to the same extent as the foregoing indemnity from the Company
and the Guarantors to the Initial Purchasers and the Holders, but only with
reference to information relating to such Holder furnished to the Company and
the Guarantors in writing by such Holder expressly for use in any 

 

14

 

Registration
Statement (or any amendment thereto), any Prospectus (or any amendment or
supplement thereto) or any Free Writing Prospectus.

 

(c)                                  In case any proceeding (including any governmental
investigation) shall be instituted involving any Person in respect of which
indemnity may be sought pursuant to either paragraph (a) or paragraph (b) above,
such Person (the “indemnified party”) shall promptly notify the Person
against whom such indemnity may be sought (the “indemnifying  party”)
in writing and the indemnifying party, upon request of the indemnified party,
shall retain counsel reasonably satisfactory to the indemnified party to
represent the indemnified party and any others the indemnifying party may
designate in such proceeding and shall pay the fees and disbursements of such
counsel related to such proceeding.  In
any such proceeding, any indemnified party shall have the right to retain its
own counsel, but the fees and expenses of such counsel shall be at the expense
of such indemnified party unless (i) the indemnifying party and the
indemnified party shall have mutually agreed to the retention of such counsel, (ii) the
named parties to any such proceeding (including any impleaded parties) include
both the indemnifying party and the indemnified party and representation of
both parties by the same counsel would be inappropriate due to actual or
potential differing interests between them or (iii) the indemnifying party
shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of
commencement of the action.  It is
understood that the indemnifying party shall not, in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for (a) the
fees and expenses of more than one separate firm (in addition to any local
counsel) for the Initial Purchasers and all Persons, if any, who control any
Initial Purchaser within the meaning of either Section 15 of the 1933 Act
or Section 20 of the 1934 Act, (b) the fees and expenses of more than
one separate firm (in addition to any local counsel) for the Company and the
Guarantors, their directors, their officers who sign the Registration Statement
and each Person, if any, who controls the Company or the Guarantors within the
meaning of either such Section and (c) the fees and expenses of more
than one separate firm (in addition to any local counsel) for all Holders and
all Persons, if any, who control any Holders within the meaning of either such
Section, and that all such fees and expenses shall be reimbursed as they are
incurred.  In such case involving the
Initial Purchasers and Persons who control the Initial Purchasers, such firm
shall be designated in writing by the Initial Purchasers.  In such case involving the Holders and such
Persons who control Holders, such firm shall be designated in writing by the
Majority Holders.  In all other cases,
such firm shall be designated by the Company. 
The indemnifying party shall not be liable for any settlement of any proceeding
effected without its written consent but, if settled with such consent or if
there be a final judgment for the plaintiff, the indemnifying party agrees to
indemnify the indemnified party from and against any loss or liability by
reason of such settlement or judgment. 
Notwithstanding the foregoing sentence, if at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified
party for fees and expenses of counsel as contemplated by the second and third
sentences of this paragraph, the indemnifying party agrees that it shall be
liable for any settlement of any proceeding effected without its written
consent if (i) such settlement is entered into more than 30 days after
receipt by such indemnifying party of the aforesaid request and (ii) such
indemnifying party shall not have reimbursed the indemnified party for such
fees and expenses of counsel in accordance with such request prior to the date
of such settlement.  No indemnifying
party shall, without the prior written consent of the indemnified party, effect
any settlement of any pending or threatened 

 

15

 

proceeding
in respect of which such indemnified party is or could have been a party and
indemnity could have been sought hereunder by such indemnified party, unless
such settlement (i) includes an unconditional release of such indemnified
party from all liability on claims that are the subject matter of such
proceeding and (ii) does not include any statements as to or any findings
of fault, culpability or failure to act by or on behalf of any indemnified
party.

 

(d)                                 If the indemnification provided for in paragraph (a) or
paragraph (b) of this Section 5 is unavailable to an indemnified
party or insufficient in respect of any losses, claims, damages or liabilities,
then each indemnifying party under such paragraph, in lieu of indemnifying such
indemnified party thereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or
liabilities in such proportion as is appropriate to reflect the relative fault
of the indemnifying party or parties on the one hand and of the indemnified
party or parties on the other hand in connection with the statements or
omissions that resulted in such losses, claims, damages or liabilities, as well
as any other relevant equitable considerations. 
The relative fault of the Company, the Guarantors and the Holders shall
be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission
to state a material fact relates to information supplied by the Company or the
Guarantors or by the Holders and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.  The Holders’ respective
obligations to contribute pursuant to this Section 5(d) are several
in proportion to the respective principal amount of Registrable Securities of
such Holder that were registered pursuant to a Registration Statement.

 

(e)                                  The Company, the Guarantors and each Holder agree that it
would not be just or equitable if contribution pursuant to this Section 5
were determined by pro  rata allocation or by any other method of
allocation that does not take account of the equitable considerations referred
to in paragraph (d) above.  The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages and liabilities referred to in paragraph (d) above shall
be deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim.  Notwithstanding the provisions of this Section 5,
no Holder shall be required to indemnify or contribute any amount in excess of
the amount by which the total price at which Registrable Securities were sold
by such Holder exceeds the amount of any damages that such Holder has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission.  No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of
the 1933 Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation. 
The remedies provided for in this Section 5 are not exclusive and
shall not limit any rights or remedies which may otherwise be available to any
indemnified party at law or in equity.

 

The
indemnity and contribution provisions contained in this Section 5 shall
remain operative and in full force and effect regardless of (i) any
termination of this Agreement, (ii) any investigation made by or on behalf
of the Initial Purchasers, any Holder or any Person controlling any
Initial Purchaser or any Holder, or by or on behalf of the Company, the
Guarantors, their officers or directors or any Person controlling the Company
or the Guarantors, 

 

16

 

(iii) acceptance of any of the Exchange
Securities and (iv) any sale of Registrable Securities pursuant to a Shelf
Registration Statement.

 

6.                                       Miscellaneous.

 

(a)                                  No Inconsistent Agreements.  Neither the Company nor the Guarantors have
entered into, and on or after the date of this Agreement will not enter into,
any agreement which is inconsistent with the rights granted to the Holders of
Registrable Securities in this Agreement or otherwise conflicts with the
provisions hereof.  The rights granted to
the Holders hereunder do not in any way conflict with and are not inconsistent
with the rights granted to the holders of the Company’s or the Guarantors’
other issued and outstanding securities under any such agreements.

 

(b)                                 Amendments and Waivers.  The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given unless the Company and the Guarantors have obtained the written consent
of Holders of at least a majority in aggregate principal amount of the outstanding
Registrable Securities affected by such amendment, modification, supplement,
waiver or consent; provided, however, that no amendment,
modification, supplement, waiver or consent to any departure from the
provisions of Section 5 hereof shall be effective as against any Holder of
Registrable Securities unless consented to in writing by such Holder.

 

(c)                                  Notices.  All notices and other communications provided
for or permitted hereunder shall be made in writing by hand-delivery,
registered first-class mail, telecopier, or any courier guaranteeing overnight
delivery (i) if to a Holder, at the most current address given by such
Holder to the Company by means of a notice given in accordance with the
provisions of this Section 6(c), which address initially is, with respect
to the Initial Purchasers, the address set forth in the Purchase Agreement; and
(ii) if to the Company or the Guarantors, initially at the Company’s
address set forth in the Purchase Agreement and thereafter at such other
address, notice of which is given in accordance with the provisions of this Section 6(c).

 

All
such notices and communications shall be deemed to have been duly given:  at the time delivered by hand, if personally
delivered; five business days after being deposited in the mail, postage
prepaid, if mailed; when receipt is acknowledged, if telecopied; and on the
next business day if timely delivered to an air courier guaranteeing overnight
delivery.

 

Copies
of all such notices, demands, or other communications shall be concurrently
delivered by the Person giving the same to the Trustee, at the address
specified in the Indenture.

 

(d)                                 Successors and Assigns.  This Agreement shall inure to the benefit of
and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Purchase Agreement.  If any transferee of any Holder shall acquire
Registrable Securities, in any manner, whether by operation of law or 

 

17

 

otherwise,
such Registrable Securities shall be held subject to all of the terms of this
Agreement, and by taking and holding such Registrable Securities such Person
shall be conclusively deemed to have agreed to be bound by and to perform all
of the terms and provisions of this Agreement and such Person shall be entitled
to receive the benefits hereof.  The
Initial Purchasers (in their capacity as Initial Purchasers) shall have no
liability or obligation to the Company or the Guarantors with respect to any
failure by a Holder to comply with, or any breach by any Holder of, any of the
obligations of such Holder under this Agreement.

 

(e)                                  Purchases and Sales of Securities.  The Company and the
Guarantors shall not, and shall use their best efforts to cause their
affiliates (as defined in Rule 405 under the 1933 Act) not to, purchase
and then resell or otherwise transfer any Securities.

 

(f)                                    Third Party Beneficiary.  The Holders shall be third party
beneficiaries to the agreements made hereunder between the Company and the
Guarantors, on the one hand, and the Initial Purchasers, on the other hand, and
shall have the right to enforce such agreements directly to the extent it deems
such enforcement necessary or advisable to protect its rights or the rights of
Holders hereunder.

 

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

 

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

 

(i)                                     Governing Law.  This Agreement shall be governed by the laws
of the State of New York.

 

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

 

[Signature Pages Follow]

 

18

 

 

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

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  STEEL DYNAMICS, INC.

  
	
   

  	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name: Theresa E. Wagler

  
	
   

  	
   

  	
  Title: Executive Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SDI
  INVESTMENT COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  NEW
  MILLENNIUM BUILDING SYSTEMS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  STEEL
  DYNAMICS, INC., its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Executive Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  STEEL
  DYNAMICS SALES NORTH AMERICA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  ROANOKE ELECTRIC STEEL
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name: Theresa E. Wagler

  
	
   

  	
   

  	
  Title: Vice President

  
					

 

Registration Rights Agreement

 

 

	
   

  	
  JOHN W. HANCOCK, JR.,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: ROANOKE ELECTRIC
  STEEL CORPORATION, MANAGER AND SOLE MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name: Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  NEW
  MILLENNIUM BUILDING SYSTEMS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  SOCAR
  OF OHIO, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STEEL
  OF WEST VIRGINIA, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  SWVA,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  MARSHALL
  STEEL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

Registration Rights Agreement

 

 

	
   

  	
  STEEL
  VENTURES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  SHREDDED
  PRODUCTS II, LLC

  
	
   

  	
   

  
	
   

  	
  By:
  STEEL DYNAMICS, INC., MANAGER AND SOLE MEMBER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Executive Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  THE
  TECHS INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  CAPITOL
  CITY METALS, LLC

  
	
   

  	
   

  
	
   

  	
  By:
  OMNISOURCE INDIANAPOLIS, LLC, SOLE MEMBER

  
	
   

  	
   

  
	
   

  	
  By:
  OMNISOURCE CORPORATION, SOLE MEMBER

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  JACKSON
  IRON & METAL COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

Registration Rights Agreement

 

 

	
   

  	
  MICHIGAN
  PROPERTIES ECORSE, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  OMNISOURCE CORPORATION, SOLE MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE
  BAY CITY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  JACKSON IRON & METAL COMPANY, INC., SOLE MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE
  ATHENS DIVISION, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  OMNISOURCE CORPORATION, SOLE MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE
  INDIANAPOLIS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  OMNISOURCE CORPORATION, SOLE MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

Registration Rights Agreement

 

 

	
   

  	
  OMNISOURCE
  MEXICO, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  OMNISOURCE CORPORATION, SOLE MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE
  TRANSPORT, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  OMNISOURCE CORPORATION, SOLE MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  OMNISOURCE,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  RECOVERY
  TECHNOLOGIES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  OMNISOURCE CORPORATION, SOLE MEMBER

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  SUPERIOR
  ALUMINUM ALLOYS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

Registration Rights Agreement

 

 

	
   

  	
  OMNISOURCE
  SOUTHEAST, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  COHEN &
  GREEN SALVAGE CO., INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  LUMBERTON
  RECYCLING COMPANY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  RAEFORD
  SALVAGE COMPANY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CAROLINAS
  RECYCLING GROUP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  OMNISOURCE SOUTHEAST, LLC, MANAGER AND SOLE MEMBER

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Theresa E. Wagler

  
	
   

  	
   

  	
  Name:
  Theresa E. Wagler

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

Registration Rights Agreement

 

 

	
  Confirmed and accepted
  as of

  
	
    the date
  first above written:

  
	
   

  
	
  BANC OF AMERICA SECURITIES LLC

  
	
  GOLDMAN, SACHS & CO.

  J.P. MORGAN SECURITIES INC.

  MORGAN STANLEY & CO. INCORPORATED

  
	
   

  
	
   

  
	
  By: BANC OF AMERICA SECURITIES LLC

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Michael D. Browne

  	
   

  
	
  Name:

  	
  Michael D. Browne

  	
   

  
	
  Title:

  	
  Managing Director

  	
   

  

 

Registration Rights Agreement

 

 

SCHEDULE I

 

Guarantors

 

	
  NAME

  	
   

  	
  JURISDICTION

  
	
  OMNISOURCE
  SOUTHEAST, LLC

  	
   

  	
  Delaware

  
	
  SDI INVESTMENT
  COMPANY

  	
   

  	
  Delaware

  
	
  STEEL DYNAMICS
  SALES NORTH AMERICA, INC.

  	
   

  	
  Indiana

  
	
  NEW MILLENNIUM
  BUILDING SYSTEMS, LLC

  	
   

  	
  Indiana

  
	
  ROANOKE ELECTRIC
  STEEL CORPORATION

  	
   

  	
  Indiana

  
	
  COHEN &
  GREEN SALVAGE CO., INC.

  	
   

  	
  North Carolina

  
	
  LUMBERTON
  RECYCLING COMPANY, INC.

  	
   

  	
  North Carolina

  
	
  RAEFORD SALVAGE
  COMPANY, INC.

  	
   

  	
  North Carolina

  
	
  NEW MILLENNIUM
  BUILDING SYSTEMS, INC.

  	
   

  	
  South Carolina

  
	
  CAROLINAS
  RECYCLING GROUP, LLC

  	
   

  	
  South Carolina

  
	
  SOCAR OF OHIO,
  INC.

  	
   

  	
  Ohio

  
	
  SHREDDED
  PRODUCTS II, LLC

  	
   

  	
  Indiana

  
	
  JOHN W. HANCOCK,
  JR., LLC

  	
   

  	
  Virginia

  
	
  STEEL OF WEST
  VIRGINIA, INC.

  	
   

  	
  Delaware

  
	
  STEEL VENTURES,
  INC.

  	
   

  	
  Delaware

  
	
  SWVA, INC.

  	
   

  	
  Delaware

  
	
  MARSHALL STEEL,
  INC.

  	
   

  	
  Delaware

  
	
  THE TECHS
  INDUSTRIES, INC.

  	
   

  	
  Delaware

  
	
  OMNISOURCE
  CORPORATION

  	
   

  	
  Indiana

  
	
  CAPITOL CITY
  METALS, LLC

  	
   

  	
  Indiana

  
	
  JACKSON
  IRON & METAL COMPANY, INC.

  	
   

  	
  Michigan

  
	
  MICHIGAN
  PROPERTIES ECORSE, LLC

  	
   

  	
  Indiana

  
	
  OMNISOURCE
  ATHENS DIVISION, LLC

  	
   

  	
  Indiana

  
	
  OMNISOURCE BAY
  CITY, LLC

  	
   

  	
  Indiana

  
	
  OMNISOURCE
  INDIANAPOLIS, LLC

  	
   

  	
  Indiana

  
	
  OMNISOURCE, LLC

  	
   

  	
  Indiana

  
	
  OMNISOURCE
  MEXICO, LLC

  	
   

  	
  Indiana

  
	
  OMNISOURCE
  TRANSPORT, LLC

  	
   

  	
  Indiana

  

 

 

	
  NAME

  	
   

  	
  JURISDICTION

  
	
  RECOVERY
  TECHNOLOGIES, LLC

  	
   

  	
  Indiana

  
	
  SUPERIOR
  ALUMINUM ALLOYS, LLC

  	
   

  	
  Indiana

  

 

 

 

 

REGISTRATION RIGHTS
AGREEMENT

 

Dated March 17, 2010

 

among

 

STEEL DYNAMICS, INC.,

 

as Issuer,

 

the Guarantors named
herein

 

and

 

BANC OF AMERICA
SECURITIES LLC,

GOLDMAN, SACHS & CO.

J.P. MORGAN SECURITIES INC.

MORGAN STANLEY & CO. INCORPORATED

 

as Initial
Purchasers

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]