Document:

Exhibit 10.50

EMPLOYMENT AGREEMENT

This Employment Agreement (the “Agreement”), dated
as of October 17, 2005, is entered into by and between Steel Dynamics, Inc.
(the “Company”) and T. Joe Crawford (the “Employee”). This Agreement will be effective
as of the Effective Date (as defined below). In the event that the Merger
Agreement (as defined below) is terminated, this Agreement shall be void ab initio and of no further force and
effect. All capitalized terms used but not defined herein shall have the meaning
set forth in the Merger Agreement.

W I T N E
S S E T H :

WHEREAS, Employee is currently serving as President
and Chief Operating Officer of Roanoke Electric Steel Corporation (“RESC”);

WHEREAS, the Company has entered into an Agreement of
Merger and Reorganization dated October 17, 2005, by and among the Company, RS
Acquisition Corporation (“RSAC”)  and RESC (the “Merger Agreement”),
pursuant to which RESC will merge with and into RSAC with RSAC as the surviving
corporation in the Merger (the “Merger”) to be effective as of the Effective
Time (as defined in the Merger Agreement);

WHEREAS, the Board of Directors of the Company (the “Board”)
desire to provide for the employment of Employee by the Company from and after
the date upon which the Effective Time occurs (the “Effective Date”) pursuant
to the terms and conditions contained in this Agreement; and

WHEREAS, the Employee desires to
accept such employment pursuant to the terms and conditions contained in this
Agreement;

NOW, THEREFORE, in consideration of the premises, and of the
mutual covenants and agreements hereinafter contained, the parties hereto agree
as follows:

1.             Term.  The
Employee’s employment under this Agreement shall commence on the Effective
Date, and, unless sooner terminated pursuant to Section 6 below, shall continue
through December 31, 2007 (the “Term”). Continued employment beyond the Term
shall become “at-will” employment.

2.           Title.  During
the Term, the Employee will serve as the Vice President and General Manager of
the Company’s facility in Roanoke, Virginia.

3.           Duties.  During the Term, and subject to
the direction and oversight of the Company’s President and Chief Executive
Officer, the Employee will be responsible for the performance of such duties
and responsibilities as are consistent with this position, or, to the extent
not inconsistent with the requirements of Section 6(d)(ii), as may otherwise be
assigned to him from time to time by the Chief Executive Officer of the
Company. The Employee agrees to devote his full working time, attention, skill,
and energy to the duties set forth herein and to the business of the Company,
and to use his best efforts to promote the success of the Company’s business.

4.             Compensation.

(a)           Base Salary.  During the Term, the Employee
will receive an annual base salary of $370,000 (the “Base Salary”), payable in
accordance with the Company’s normal payroll practices as in effect from time
to time. Such Base Salary shall be subject to periodic review, and may be
increased, but may not be decreased, from time to time at the Board’s sole
discretion upon the recommendation of the Company’s Chief Executive Officer.
For all purposes under this Agreement, “Base Salary” shall refer to Base Salary
as in effect from time to time, including any increase in Base Salary which has
taken effect.

(b)           Bonus.  During the Term, the Employee
shall be designated as an “Officer Participant” under and shall be eligible for
cash and stock bonuses based upon and subject to the terms and conditions of
the Steel Dynamics, Inc. Amended and Restated Officer and Manager Cash and
Stock Bonus Plan (the “Bonus Plan”), including Section 6 thereof, as that Bonus
Plan may be modified, amended or replaced from time to time by and in the sole
discretion of the Board. A copy of the Bonus Plan is attached hereto and
incorporated herein as Exhibit A. Any bonus payable by reason of the
Bonus Plan shall be payable retroactive to January 1, 2006 for the calendar
year 2006, even if the Effective Date is subsequent to January 1, 2006, and for
the full calendar year 2007, subject, however, to the provisions of Section 6.
The Company agrees, solely applicable to the Term of this Agreement and not to
any extensions, renewals or replacements hereof, that, notwithstanding anything
to the contrary set forth in the Bonus Plan, in the event that the Employee’s
employment is terminated prior to the expiration of the Term or thereafter,
except for Cause, all unvested stock bonuses granted to the Employee for
services rendered during the Term, shall immediately vest and be free of any
restrictions on sale or other disposition.

(c)           Stock Options.  During the Term, the Employee
shall be eligible to participate in the Steel Dynamics, Inc. 1996 Incentive
Stock Option Plan and in any successor or replacement plan thereto (the “Stock
Option Plan”), for automatic semi-annual stock option grants (“Stock Options”)
pursuant to the provisions of Article VI of the Stock Option Plan, at the
$60,000 semi-annual grant value level. A copy of the Stock Option Plan is
attached hereto and incorporated herein as Exhibit B. The Stock
Option Plan may be modified, amended or replaced from time to time by and in
the sole discretion of the Board, in accordance with the terms of the Stock
Option Plan, and, as necessary, with stockholder approval. Each Stock Option
granted to the Employee during the Term shall provide by its terms at the time
the Stock Option is originally awarded to the Employee that the Stock Option
will remain exercisable for a period of not less than 90 days from the date on
which the Employee’s employment terminates (or, if earlier, the last day of the
term of such Stock Option), unless the Employee’s employment is terminated by
the Company for Cause (as defined in Section 6(c)).

(d)           Other Benefits.  Employee will be eligible for
those other employee benefits, (including, but not limited to health insurance,
vacation pay, 401 (k) participation, profit sharing and any other retirement
savings plan or welfare benefit plan) made available by the Company to
similarly situated executives of the Company, as such plans may be in effect or
as amended from time to time.

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(e)           Reimbursement of Business Expenses.  The Company will reimburse the Employee for all reasonable and properly
documented business related expenses, in accordance with Company policies and
practices in effect from time to time, incurred or paid by him in connection
with the performance of his duties hereunder.

(f)            Withholdings.  All
payments made under this Agreement shall be subject to any and all federal,
state and local taxes and other withholdings to the extent required by
applicable law.

5.                                        Agreement to Maintain
Confidentiality.

(a)           Recognition of  Company’s Business Interests.  Employee acknowledges that the
Company and its affiliates compete throughout the Americas in the manufacture,
marketing, research, sale and distribution of various steel and steel related
products, including but not limited to flat rolled steel, structural steel,
steel bars and shapes, and steel joists, girders and decking systems (the
“Steel Business”). As part of Employee’s conditions of employment, and in
connection with his prior employment with RESC, he has been, and, with the
Company, will be provided significant “Confidential Information,” as defined in
Section 5(b), and will have direct contact with the Company’s customers, as
well as the customers of his predecessor employer, in which capacity he is
expected to develop a good relationship with all such customers and prospective
customers. Employee acknowledges that the Company’s competitors would obtain an
unfair advantage if Employee disclosed Confidential Information to a competitor
or used Confidential Information on behalf of a competitor.

(b)           Definition of Confidential Information.  As used in this Agreement, Confidential Information shall include,
without limitation, Company financial and budgetary information and strategies;
Company plant design, specifications and layouts; Company equipment design
specifications and layouts; Company product design and specifications; Company
manufacturing processes, procedures and specifications; Company data processing
or other computer programs; Company research and development projects; Company
marketing information and strategies; Company customer lists; Company vendor
lists; Company information about customer preferences and buying patterns;
Company information about prospective customers, vendors or business
opportunities; Company pricing information or methodologies; information
concerning the Company’s costs and cost structure; information about the
Company’s operations analyses or internal accounting systems; information about
the Company’s overall corporate business strategy; and information concerning
Company technological innovations used in its business. For purposes of this
Agreement, all information that would constitute Confidential Information
within the meaning of this Agreement but which was acquired by Employee during
his employment with RESC shall be deemed to constitute the Company’s
Confidential Information hereunder.

For purposes of this
Agreement, information shall not be deemed to be “Confidential Information” to
the extent that the information (i) is in the public domain, or hereafter
becomes generally known or available through no action or omission on the part
of Employee in violation of this Agreement, (ii) is furnished to any person by
the Company without restriction on disclosure, (iii) becomes known to the
Employee from a source other than the Company, without a breach of any
obligation hereunder, (iv) is required to be disclosed by law (in which case
the

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Employee will give prompt
written notice to the Company of any such required disclosure to the extent
such notice would not be prohibited by law), or (v) is disclosed after written
approval for disclosure has been granted by the Company.

(c)           Agreement
to Maintain Confidentiality.  Except
as may be required to perform the Employee’s duties under this Agreement or as
required by applicable law, Employee shall not disclose to others or use, for
his own benefit or for the benefit of any other person, entity, firm or
company, any Confidential Information. The Employee specifically acknowledges
that, whether compiled or created by Employee, the Company or any of its
affiliates or customers, the Confidential Information as contemplated herein
derives independent economic value from not being readily known to or
ascertainable by proper means by others who could obtain economic value from
the disclosure or use of the Confidential Information, whether or not such
information independently constitutes “trade secrets” within the meaning of the
Uniform Trade Secrets Act or comparable legislation as may be in effect and
applicable from time to time. Employee also acknowledges that reasonable
efforts have been put forth by his prior employer, RESC, and by the Company,
and will continue to be put forth by the Company, to maintain the secrecy of
the Confidential Information, all of which is and shall remain the Company’s
sole property.

(d)           Scope
and Duration.  The
Company specifically acknowledges that the restrictions in this Section 5 on
the Employee’s use or disclosure of Confidential Information do not, and shall
not be construed to, restrict in any way the Employee’s ability to be employed
by or otherwise associated with any other person, entity, firm or company
engaged in the Steel Business following the employee’s termination of
employment with the Company. The Employee’s obligations under this Section 5(c)
will survive termination of Employee’s employment hereunder.

6.                                        Termination of Employment.

(a)           Termination
Due to Death.  Employee’s
employment with the Company will automatically terminate immediately upon his
death, and Employee’s estate will be entitled to (i) any earned but unpaid Base
Salary to the date of termination, (ii) any pro rata bonus (as and when
determined and as otherwise payable under the Bonus Plan) for the partial
calendar year to the date of Employee’s death, (iii) unpaid vacation and
unreimbursed expenses payable hereunder, and (iv) the amount set forth in Column
A of Schedule 1 attached hereto and incorporated by reference
herein, corresponding to the line representing the calendar month in which
Employee’s death occurred. All payments shall be made within 30 days of
Employee’s termination of employment, except for the pro rata bonus, which
shall be paid within 21/2 months of the end of the fiscal year in which
the termination occurred. Except for the foregoing payment amounts or as
otherwise contemplated by the provisions of Section 6(g), Employee shall be entitled
to no other compensation, benefits or payments.

(b)           Termination
Due to Disability.  If, during the Term, the
Employee incurs a “Disability” as defined herein, the Company, in the exercise
of its sole discretion, shall be entitled to terminate Employee’s employment
hereunder, immediately upon written notice to the Employee of such decision,
subject, however, to the payment to the Employee of (i) any earned but unpaid
Base Salary to the date of termination, (ii) any pro rata bonus (as and when

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determined and otherwise
payable under the Bonus Plan) for the partial calendar year to the date of such
notice, (iii) unpaid vacation and unreimbursed expenses payable hereunder, and
(iv) the amount set forth in Column A of Schedule 1 corresponding
to the line representing the calendar month in which termination for Disability
hereunder is determined to have occurred. For purposes of this Agreement, “Disability”
shall mean a physical or mental impairment that entitles the Employee to
receive benefits under the Company’s long-term disability plan. The Employee
shall be deemed “Disabled” for purposes of this Agreement, and his employment
with the Company shall terminate, upon receipt by the Company of written
notification from the administrator of the Company’s long-term disability plan
that the administrator has determined that
the Employee is disabled for purposes of that plan and entitled to the
payment of benefits thereunder. All payments shall be made within 30 days of
Employee’s termination of employment, except for the pro rata bonus, which
shall be paid within 21⁄2 months of the end of the fiscal year in which the termination occurred. Except for the
foregoing payment amounts or as otherwise
contemplated by the provisions of Section 6(g), Employee shall be entitled to
no other compensation, benefits
or payments.

(c)           Termination by Company for Cause.  During the Term, the Company shall be entitled  to terminate Employee’s employment hereunder for “Cause,” as defined
below, by providing written notice to the Employee of such decision. For
purposes of this Agreement, Cause shall mean (i) the commission by the Employee
of an act of malfeasance, dishonesty, fraud or breach of trust against the
Company or any of its affiliates, employees, clients or suppliers, (ii) the
breach by the Employee of any of the material obligations set forth in Sections
3, 5 or 8 of this Agreement, after a written demand by the Company for
correction of such breach is delivered to the Employee, which specifically
identifies the section or sections of the Agreement which the Company asserts
have been breached and the manner in which the Company asserts that the
Employee has breached the obligations referenced therein, which breach is not
cured by the Employee within thirty (30) days of his receipt of such written
demand; (iii) the Employee’s willful and continued failure, neglect or refusal
to perform substantially his material duties and responsibilities hereunder
(other than by reason of a Disability), after a written demand by the Company for
substantial performance is delivered to the Employee, which specifically
identifies the manner in which the Company asserts that the Employee has not
substantially performed, which willful and continued failure to perform is not
cured by the Employee within thirty (30) days of his receipt of such written
demand; and (iv) the Employee’s indictment, conviction of or plea of guilty or
no contest to any felony or any crime involving moral turpitude.

Upon termination of this Agreement
for Cause, the Company shall pay the Employee any earned but unpaid Base Salary
to the date of termination, any pro rata bonus for the partial calendar year to
the date of termination (as and when determined and as otherwise payable under
the Bonus Plan), and any unpaid vacation and any unreimbursed expenses
otherwise payable hereunder. All such payments shall be made within 30 days of
Employee’s termination of employment, except for the pro rata bonus, which
shall be paid within 21⁄2 months of the end of the fiscal year in which the termination
occurred. Except for the foregoing payment amounts or as otherwise contemplated
by the provisions of Section 6(g), Employee shall be entitled to no other
compensation, benefits or payments.

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(d)           Termination
by Employee During Term.

(i)            The
Employee may voluntarily terminate employment with the Company without reason
at any time during the Term, and shall be entitled to (w) earned but unpaid
Base Salary to the date of termination, (x) any pro rata bonus (as and when
determined and as otherwise payable under the Bonus Plan) for the partial
calendar year to the date of termination, (y) any unpaid vacation and
unreimbursed expenses otherwise payable hereunder, and (z) the amount set forth
in Column A of Schedule 1, corresponding to the line representing
the calendar month in which the termination has occurred. All payments shall be
made within 30 days of Employee’s termination of employment, except for the pro
rata bonus, which shall be paid within 21/2 months of the end of the fiscal
year in which the termination occurred. Except for the foregoing payment
amounts or as otherwise contemplated by the provisions of Section 6(g),
Employee shall be entitled to no other compensation, benefits or payments.

(ii)           Notwithstanding
the forgoing, the Employee may voluntarily terminate employment with the
Company if such termination is for “Good Reason,” as defined below. In such
event, the Employee shall not receive the payments described in Section 6(d)(i)
above but will instead receive payments equal in amount to those which the
Employee would have received if his employment had been terminated by the
Company without Cause pursuant to Section 6(e) on the date on which the
Employee delivers his written notice of termination under this Section 6(d)(ii)
(as described below). For purposes of this provision, Good Reason shall mean
the occurrence, without the Employee’s consent, of any of the following events:
(w) the assignment to the Employee of duties that are significantly and
materially different from, and that result in a demotion of the Employee or a
substantial diminution of, the duties specified in Section 3 of this Agreement,
(x) any requirement by the Company that the Employee relocate more than 50
miles from the Employee’s workplace without the consent of the Employee, in
which Good Reason shall be deemed to have occurred on the date the Company
communicates such requirement (either in writing or otherwise), (y) any failure
by the Company to provide the Employee with the compensation and benefits
described in Section 4 (including any reduction in the Employee’s Base Salary
in violation of Section 4(a)), or (z) a material breach of this Agreement by
the Company (including the failure of any successor to the Company to assume
this Agreement). The Employee must, however, provide written notice to the
Company of any circumstance he claims to constitute Good Reason for termination
hereunder, and, thereafter, the Employee shall not be entitled to terminate
this Agreement and his employment hereunder for Good Reason if, within the 30
days period following the Company’s receipt from the Employee of his written
notice of the facts he claims to constitute Good Reason, the Company has cured
the alleged deficiency or otherwise resolved the issue or issues to the
reasonable satisfaction of the Employee.

(e)           Termination by Company Without Cause.  If, during the Term, the Company  terminates this Agreement and Employee’s employment hereunder, without
Cause, the Employee shall be entitled to (w) unpaid Base Salary to the date of
termination, (x) the pro rata portion of the bonus (as and when determined and
as otherwise payable under the Bonus Plan) for the partial calendar year to the
date of termination, (y) any unpaid vacation and unreimbursed

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expenses otherwise payable
hereunder, and (z) the sum of the amounts set forth in Columns A and B
of Schedule 1, corresponding to the line representing the calendar month
in which the termination has occurred. All such payments shall be made within
30 days of Employee’s termination of employment, except for the pro rata bonus,
which shall be paid within 21⁄2 months of the end of the fiscal year in which the
termination occurred. Except for the foregoing payment amounts or as otherwise
contemplated by the provisions of Section  6(g), Employee shall be entitled
to no other compensation, benefits or payments.

(f)            Stock Options.  From and after termination
of employment hereunder, regardless of whether by the Company or by the
Employee and whether or not for Cause or for Good Reason, the Employee shall
not be entitled to any further grants of Company Stock Options. With respect to
Stock Options that had already been granted to the Employee, termination of
employment by the Company without Cause (Section 6(e)) or termination of
employment by the Employee for Good Reason (Section 6(d)(ii)) shall cause all
unvested Stock Options to become fully vested and nonforfeitable and shall
cause such Stock Options to be exercisable according to their terms (as
described in Section 4(c)).

(g)           Other Rights.  This Agreement shall not
prevent or limit the Employee’s continuing or future participation in any
benefit, bonus, incentive or other plans, if any, provided by the Company or
any of its affiliates and for which the Employee may qualify, nor shall this
Agreement limit or otherwise affect such rights as the Employee has under any
other agreements with the Company or any of its affiliates. Amounts which are
vested benefits or which the Employee is otherwise entitled to receive under
the terms of any plan of the Company or any of its affiliates and any other
payment or benefit required by law at or after termination of employment shall
be payable in accordance with such plan or applicable law, except as
specifically provided by this Agreement.

(h)           Special Provision Regarding Section
409A of the Internal Revenue Code.  Notwithstanding anything in this Agreement to
the contrary, to the extent that any amount payable under this Agreement may
constitute an amount payable under a “nonqualified deferred compensation plan,”
as defined in Section 409A of the Internal Revenue Code of 1986, as amended,
(the “Code”) such payment will be made by the Company in compliance with any
applicable requirements of Code Section 409A (including the requirement that
payment be delayed for six (6) months following the Employee’s “separation of
service” if the Employee is a “specified employee” under Code Section 409A, to
the extent applicable).

7.             Return of  Company
Property.  Upon the
termination of the Employee’s employment with the Company (whether upon the
expiration of the Term or thereafter), or at any time during such employment,
upon request by the Company, the Employee will promptly deliver to the Company
(or its representative) and not keep in his possession, recreate, or deliver to
any other person or entity, any and all property that belongs
to the Company and/or its affiliates and which is in the Employee’s possession
as a result of his employment with the Company, including, without limitation,
computer hardware and software, pagers, PDA’s, Blackberries, cell phones, other
electronic equipment, records, data, client lists and information, supplier
lists and information, notes, reports, correspondence, financial information,
account information, product information, files, electronically-stored
information, and other documents and information, including any and all copies
of the foregoing.

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8.             Assignment of  Intellectual Property Rights.  Employee
hereby assigns to the Company all of Employee’s right, title and interest,
including any copyrights and patents or copyrightable and patentable ideas, in
and to any idea, invention, design, work of authorship, or other intellectual
property made or conceived during his employment hereunder or by his
predecessor employer, RESC, whether made solely or jointly by Employee, or
created wholly or only in part by Employee, and whether or not any such rights
are patentable, copyrightable or susceptible to other forms of protection, so
long as such rights pertain to the Company’s actual or anticipated business
interests or are suggested by or result from any work performed by Employee on
the Company’s behalf. In connection with the foregoing, Employee will promptly
disclose any such ideas or rights to the Company and, on the Company’s request,
will promptly execute any assignment of title to the Company or its designee
and anything else reasonably necessary to enable the Company or its designee to
secure such intellectual property rights as are possible with respect to such
idea, concept or right.

9.             Enforcement.  In addition to any other
remedies available to the Company, the provisions of this Agreement may be
enforced by injunction (a) to restrain any violation by Employee and all
persons acting for or with Employee and (b) to compel specific performance of
the terms and conditions of this Agreement. Employee certifies that he has had
the opportunity to discuss this Agreement with such legal advisers as chosen
and that he understands its provisions and has entered into this Agreement
freely and voluntarily.

10.          Applicable Law.  This Agreement shall be
interpreted, construed and governed according to the laws of the Commonwealth
of Virginia, regardless of choice of law principles to the contrary.

I1.           Entire Agreement; Amendments.  This
Agreement discharges and cancels all previous agreements between the
Employee and RESC, including, without limitation, the Executive Employment
Continuity Agreement and all amendments thereto, and the Management Incentive
Plan, relating to Employee’s employment or the rights to which Employee would
have been entitled from and after the Effective Date, as well as all previous
or contemporary oral or written agreements between the Employee and the
Company, and constitutes the entire agreement between the parties with regard
to the subject matter hereof. No agreements, representations or statements of
any party not contained herein shall be binding on either party, and no
amendment or variation of the terms and conditions of this Agreement shall be
valid unless in writing and signed by both parties.

12.          Assignability.  This Agreement and the rights
and duties created hereunder shall not be assignable or delegable by Employee.
The Company may, at its option and without Employee’s consent, assign its
rights and duties hereunder to any successor entity, Company affiliate or
subsidiary, or any transferee of the Company’s assets.

13.          No Waiver.  No
failure or delay by any party to this Agreement to enforce any rights specified
hereunder shall operate as a waiver of such right, nor will any single or
partial exercise of a right preclude any further or later enforcement of the
same right within the period of the applicable statute of limitations.

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14.          Notices.  All notices and other
communications provided for or contemplated by this Agreement shall be in
writing and shall be deemed to have been duly given when delivered and received
by the other party, or when sent by recognized overnight courier, or by faxed
communication (with overnight delivery of a hard copy thereof) to the following
addresses and/or contact numbers:

	
  If to the Company:

  	
   

  	
  Steel Dynamics, Inc.

  
	
   

  	
   

  	
  Attn: Gary Heasley, CFO

  
	
   

  	
   

  	
  6714 Pointe Inverness Way, Suite 200 

  Fort Wayne, IN 46804 

  
	
   

  	
   

  	
  Phone: 

  	
  260-459-3553 

  
	
   

  	
   

  	
  Fax: 

  	
  260-969-3592

  
	
   

  	
   

  	
   

  	
   

  
	
  If to Employee:

  	
   

  	
  T. Joe Crawford

  
	
   

  	
   

  	
  809 Scott Circle

  
	
   

  	
   

  	
  Salem, Virginia 24153

  

 

or to such other address or
contact number as either party hereto will have furnished to the other in
writing in accordance with this Section 14, except that such notice of change
of address or contact number shall be effective only upon receipt.

15.          Counterparts.  This Agreement may be exercised
in any number of counterparts, each of which as so executed shall be deemed to
be an original, and such counterparts shall together be deemed to constitute
but one agreement.

16.          Excise
Tax Indemnification.

(a)           The
Employee will provide the Company with written notice promptly upon receipt of
any claim by the Internal Revenue Service or any other taxing authority (an “IRS
Claim”) that would require the payment by the Employee of the excise tax
imposed under Code Section 4999  on “excess parachute payments”
(the “Excise Tax”) in respect of any compensation, benefit, payment or
distribution by the Company, by RESC or by any affiliate of the Company to or
for the benefit of the Employee or his legal representatives and dependents,
whether payable or distributable pursuant to the terms of this Agreement or
pursuant to any other plan, agreement, program or arrangement (a “Parachute
Payment”). In such event, the Company, at its own cost and expense, shall be
entitled to request that the Employee cooperate with the Company in challenging
the Internal Revenue Service’s position, administratively or in court, and have
the Employee authorize the Company’s tax representatives (the “Company’s
Representatives”) to represent the Employee in such matter before the Internal
Revenue Service (by an appropriate Power of Attorney Form 2848 or, the
equivalent form at any time  or from time to time). Furthermore,
the Employee will cooperate with the Company, as required in connection with
such challenge. For its part, the Company shall pay directly all legal,
accounting, and other costs and expenses of the Company’s Representatives and
hold the Employee harmless from and against all such costs and expenses, as
well as the amounts required to be paid pursuant to the provisions of Section
16(b) in the event that any Excise Taxes and related amounts are determined to
have been payable.

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(b)           The
Company will pay to the Employee (or his legal representative, if applicable)
at least seven (7) days before the deadline for payment of the amount of Excise
Taxes and related amounts that are determined to be due and owing by the
Employee, either (1) if the Employee acknowledges that such amounts are due and
payable and he elects not to contest the IRS Claim and if the Company does not
elect to cause the Employee to initiate a challenge to the IRS Claim, or (2) in
the event of a challenge, as described herein, such Excise Taxes and related
amounts and any additional amounts are finally determined to be due and owing,
an amount (the “Gross-Up Payment”) equal to the sum of (x) plus (y) minus (z)
where:

(x) is an amount equal to the total amount of Excise Tax, interest and
penalties specified in the IRS Claim or otherwise finally determined to be due
and owing with respect to any Parachute Payments; and

(y) is the amount determined under the following formula:

(x) multiplied by ((Tax Rate/(1-Tax Rate)), and

(z) is an amount equal to
Employee’s federal tax benefit of deducting on his state tax return (and local
tax return, if applicable) any additional taxes payable by Employee as a result
of this Section 16.

For purposes of this Section
16, the term “Tax Rate” shall mean the sum of (A) the highest marginal federal
personal income tax rate under Code Section 1 applicable to income of the
character of the Parachute Payments; (B) the sum of the highest marginal state
and local income tax rates for the state and locality in which the Employee is
domiciled which are applicable to income of the character of the Parachute
Payments; (C) the hospital insurance tax rate under Code Section 3111 (b), and
(D) the excise tax rate under Code Section 4999. Notwithstanding the foregoing,
the Company shall not be obligated to make a Gross-Up Payment with respect to
the amount of Excise Tax, interest and penalties specifically allocable to a
Parachute Payment made pursuant to either Section 6(c) or Section 6(d)(i) of
this Agreement.

(c)           The
Company’s obligations under this Section 16 will survive termination of the
Employee’s employment hereunder.

17.          Interest.  If the Company does not pay any
amount due to the Employee under this Agreement within three days after such
amount became due and owing, interest shall accrue on such amount from the date
it became due and owing until the date of payment at an annual rate equal to
200 basis points above the prime commercial lending rate published in The Wall
Street Journal in effect from time to time during the period of such
nonpayment.

18.          No Set-off or Mitigation.  The
Employee’s right to receive when due the payments and other benefits provided
for under this Agreement shall not be subject to any right of set-off. The
Employee shall not have any duty to mitigate the amounts payable by the Company
under this Agreement by seeking new employment following termination. Except as
specifically provided in this Agreement, all amounts payable pursuant to this
Agreement shall be paid without reduction regardless of any amounts of salary,
compensation or other amounts which may be paid or payable to the Employee as
the result of the Employee’s employment with another employer.

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19.          Successors.  The Agreement will be binding
upon and inure to the benefit of the Company, the Employee and their respective
heirs, representatives and successors. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to
assume expressly and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement, the term “Company” means
the Company as hereinbefore defined and any successor to its business and/or
assets which assumes and agrees to perform this Agreement by operation of law,
or otherwise.

20.          Effectiveness.  Notwithstanding any other
provision of this Agreement to the contrary, no provision of this Agreement
shall take effect or otherwise be binding on the parties to this Agreement
until the Effective Date. This Agreement shall immediately terminate and shall
have no further force or effect if the Merger Agreement is terminated.

 11
 

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

	
  STEEL DYNAMICS, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Keith Busse

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  Keith Busse

  	
   

  	
   

  	
  /s/ T. Joe Crawford

  	
   

  
	
  Its: 

  	
    President & CEO

  	
   

  	
  T. Joe Crawford

  
	
  Date: 

  	
  October 18, 2005

  	
   

  	
  Date:     10/18/05

  

 

 12

SCHEDULE 1

	
  

  	
   

  	
  Calendar Month

  	
   

  	
  A

  	
   

  	
  B

  	
   

  
	
  1

  	
   

  	
  January
  2006

  	
   

  	
  $

  	
  1,110,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  2

  	
   

  	
  February
  2006

  	
   

  	
  $

  	
  1,064,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  3

  	
   

  	
  March
  2006

  	
   

  	
  $

  	
  1,018,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  4

  	
   

  	
  April
  2006

  	
   

  	
  $

  	
  971,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  5

  	
   

  	
  May
  2006

  	
   

  	
  $

  	
  925,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  6

  	
   

  	
  June
  2006

  	
   

  	
  $

  	
  879,000

  	
   

  	
  $

  	
  740,.000

  	
   

  
	
  7

  	
   

  	
  July
  2006

  	
   

  	
  $

  	
  833,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  8

  	
   

  	
  August
  2006

  	
   

  	
  $

  	
  786,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  9

  	
   

  	
  September
  2006

  	
   

  	
  $

  	
  740,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  10

  	
   

  	
  October
  2006

  	
   

  	
  $

  	
  694,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  11

  	
   

  	
  November
  2006

  	
   

  	
  $

  	
  648,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  12

  	
   

  	
  December
  2006

  	
   

  	
  $

  	
  601,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  13

  	
   

  	
  January
  2007

  	
   

  	
  $

  	
  555,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  14

  	
   

  	
  February
  2007 ,

  	
   

  	
  $

  	
  509,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  15

  	
   

  	
  March
  2007

  	
   

  	
  $

  	
  463,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  16

  	
   

  	
  April
  2007

  	
   

  	
  $

  	
  416,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  17

  	
   

  	
  May
  2007

  	
   

  	
  $

  	
  370,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  18

  	
   

  	
  June
  2007

  	
   

  	
  $

  	
  324,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  19

  	
   

  	
  July
  2007

  	
   

  	
  $

  	
  278,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  20

  	
   

  	
  August
  2007

  	
   

  	
  $

  	
  231,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  21

  	
   

  	
  September
  2007

  	
   

  	
  $

  	
  185,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  22

  	
   

  	
  October
  2007

  	
   

  	
  $

  	
  139,000

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  23

  	
   

  	
  November
  2007

  	
   

  	
  $

  	
  93,000.

  	
   

  	
  $

  	
  740,000

  	
   

  
	
  24

  	
   

  	
  December 2007

  	
   

  	
  $

  	
  46,000

  	
   

  	
  $

  	
  740,000Exhibit
10.51

EMPLOYMENT
AGREEMENT

This Employment Agreement
(the “Agreement”), dated as of October 17, 2005, is entered into by and between
Steel Dynamics, Inc. (the “Company”) and Timothy R. Duke (the “Employee”). This
Agreement will be effective as of the Effective Date (as defined below). In the
event that the Merger Agreement (as defined below) is terminated, this
Agreement shall be void ab initio and
of no further force and effect. All capitalized terms used but not defined
herein shall have the meaning set forth in the Merger Agreement.

W I T N E S S E T H :

WHEREAS, Employee is currently serving as President
and Chief Executive Officer of Steel of West Virginia, Inc., a wholly owned
subsidiary of Roanoke Electric Steel Corporation (“RESC”);

WHEREAS, the Company has entered into an Agreement of
Merger and Reorganization dated October 17, 2005, by and among the Company, RS
Acquisition Corporation (“RSAC”) and RESC (the “Merger Agreement”), pursuant to
which RESC will merge with and into RSAC with RSAC as the surviving corporation
in the Merger (the “Merger”) to be effective as of the Effective Time (as
defined in the Merger Agreement);

WHEREAS, the Board of Directors of the Company (the “Board”)
desire to provide for the employment of Employee by the Company from and after
the date upon which the Effective Time occurs (the “Effective Date”) pursuant
to the terms and conditions contained in this Agreement; and

WHEREAS, the Employee desires to
accept such employment pursuant to the terms and conditions contained in this
Agreement;

NOW, THEREFORE, in consideration of the premises, and of the
mutual covenants and agreements hereinafter contained, the parties hereto agree
as follows:

1.             Term.  The
Employee’s employment under this Agreement shall commence on the Effective
Date, and, unless sooner terminated pursuant to Section 6 below, shall continue
through December 31, 2007 (the “Term”). Continued employment beyond the Term
shall become “at-will” employment.

2.             Title.  During the Term, the Employee
will serve as the President of Steel of West Virginia, Inc. and all its
subsidiaries.

3.             Duties.  During the Term, and subject to
the direction and oversight of the Company’s President and Chief Executive
Officer, the Employee will be responsible for the performance of such duties
and responsibilities as are consistent with this position, or, to the extent
not inconsistent with the requirements of Section 6(d)(ii), as may otherwise be
assigned to him from time to time by the Chief Executive Officer of the
Company. The Employee agrees to devote his full working time, attention, skill,
and energy to the duties set forth herein and to the

business of the Company, and to use his best efforts
to promote the success of the Company’s business.

4.             Compensation.

(a)           Base Salary.  During the Term, the Employee will
receive an annual base salary of $325,000 (the “Base Salary”), payable in
accordance with the Company’s normal payroll practices as in effect from time
to time. Such Base Salary shall be subject to periodic review, and may be
increased, but may not be decreased, from time to time at the Board’s sole
discretion upon the recommendation of the Company’s Chief Executive Officer.
For all purposes under this Agreement, “Base Salary” shall refer to Base Salary
as in effect from time to time, including any increase in Base Salary which has
taken effect.

(b)           Bonus.  During the Term, the Employee shall be
designated as an “Officer Participant” under and shall be eligible for cash and
stock bonuses based upon and subject to the terms and conditions of the Steel
Dynamics, Inc. Amended and Restated Officer and Manager Cash and Stock Bonus
Plan (the “Bonus Plan”), including Section 6 thereof, as that Bonus Plan may be
modified, amended or replaced from time to time by and in the sole discretion
of the Board. A copy of the Bonus Plan is attached hereto and incorporated
herein as Exhibit A. Any bonus payable by reason of the Bonus Plan shall
be payable retroactive to January 1, 2006 for the calendar year 2006, even if
the Effective Date is subsequent to January 1, 2006, and for the full calendar
year 2007, subject, however, to the provisions of Section 6. The Company
agrees, solely applicable to the Term of this Agreement and not to any
extensions, renewals or replacements hereof, that, notwithstanding anything to
the contrary set forth in the Bonus Plan, in the event that the Employee’s
employment is terminated prior to the expiration of the Term or thereafter,
except for Cause, all unvested stock bonuses granted to the Employee for services
rendered during the Term, shall immediately vest and be free of any
restrictions on sale or other disposition.

(c)           Stock
Options.  During the
Term, the Employee shall be eligible to participate in the Steel Dynamics, Inc.
1996 Incentive Stock Option Plan and in any successor or replacement plan
thereto (the “Stock Option Plan”), for automatic semi-annual stock option
grants (“Stock Options”) pursuant to the provisions of Article VI of the Stock
Option Plan, at the $60,000 semi-annual grant value level. A copy of the Stock
Option Plan is attached hereto and incorporated herein as Exhibit B.
The Stock Option Plan may be modified, amended or replaced from time to time by
and in the sole discretion of the Board, in accordance with the terms of the
Stock Option Plan, and, as necessary, with stockholder approval. Each Stock
Option granted to the Employee during the Term shall provide by its terms at
the time the Stock Option is originally awarded to the Employee that the Stock
Option will remain exercisable for a period of not less than 90 days from the
date on which the Employee’s employment terminates (or, if earlier, the last
day of the term of such Stock Option), unless the Employee’s employment is
terminated by the Company for Cause (as defined in Section 6(c)).

(d)           Other Benefits.  Employee will be eligible for
those other employee benefits, (including, but not limited to health insurance,
vacation pay, 401 (k) participation, profit sharing and any other retirement
savings plan or welfare benefit plan) made available by the Company to

 2
 

similarly situated
executives of the Company, as such plans may be in effect or as amended from
time to time.

(e)           Reimbursement of Business Expenses.  The Company will reimburse the Employee for all reasonable and properly documented
business related expenses, in accordance with Company policies and practices in
effect from time to time, incurred or paid by him in connection with the
performance of his duties hereunder.

(f)            Withholdings.  All
payments made under this Agreement shall be subject to any and all federal,
state and local taxes and other withholdings to the extent required by
applicable law.

5.             Agreement to Maintain Confidentiality.

(a)           Recognition of Company’s Business Interests.  Employee acknowledges that the
Company and its affiliates compete throughout the Americas in the manufacture,
marketing, research, sale and distribution of various steel and steel related
products, including but not limited to flat rolled steel, structural steel,
steel bars and shapes, and steel joists, girders and decking systems (the “Steel
Business”). As part of Employee’s conditions of employment, and in connection
with his prior employment with RESC, he has been, and, with the Company, will
be provided significant “Confidential Information,” as defined in Section 5(b),
and will have direct contact with the Company’s customers, as well as the
customers of his predecessor employer, in which capacity he is expected to
develop a good relationship with all such customers and prospective customers.
Employee acknowledges that the Company’s competitors would obtain an unfair
advantage if Employee disclosed Confidential Information to a competitor or
used Confidential Information on behalf of a competitor.

(b)           Definition of Confidential Information.  As used in this Agreement, Confidential
Information shall include, without limitation, Company financial and budgetary
information and strategies; Company plant design, specifications and layouts; Company
equipment design specifications and layouts; Company product design and
specifications; Company manufacturing processes, procedures and specifications;
Company data processing or other computer programs; Company research and
development projects; Company marketing information and strategies; Company customer
lists; Company vendor lists; Company information about customer preferences and
buying patterns; Company information about prospective customers, vendors or
business opportunities; Company pricing information or methodologies;
information concerning the Company’s costs and cost structure; information
about the Company’s operations analyses or internal accounting systems;
information about the Company’s overall corporate business strategy; and
information concerning Company technological innovations used in its business.
For purposes of this Agreement, all information that would constitute
Confidential Information within the meaning of this Agreement but which was
acquired by Employee during his employment with RESC shall be deemed to
constitute the Company’s Confidential Information hereunder.

For purposes of this
Agreement, information shall not be deemed to be “Confidential Information” to
the extent that the information (i) is in the public domain, or hereafter
becomes generally known or available through no action or omission on the part
of Employee in violation

 3
 

of this Agreement, (ii) is
furnished to any person by the Company without restriction on disclosure, (iii)
becomes known to the Employee from a source other than the Company, without a
breach of any obligation hereunder, (iv) is required to be disclosed by law (in
which case the Employee will give prompt written notice to the Company of any
such required disclosure to the extent such notice would not be prohibited by
law), or (v) is disclosed after written approval for disclosure has been
granted by the Company.

(c)           Agreement to Maintain Confidentiality.  Except
as may be required to perform the Employee’s duties under this Agreement or as
required by applicable law, Employee shall not disclose to others or use, for
his own benefit or for the benefit of any other person, entity, firm or
company, any Confidential Information. The Employee specifically acknowledges
that, whether compiled or created by Employee, the Company or any of its
affiliates or customers, the Confidential Information as contemplated herein
derives independent economic value from not being readily known to or
ascertainable by proper means by others who could obtain economic value from
the disclosure or use of the Confidential Information, whether or not such
information independently constitutes “trade secrets” within the meaning of the
Uniform Trade Secrets Act or comparable legislation as may be in effect and
applicable from time to time. Employee also acknowledges that reasonable
efforts have been put forth by his prior employer, RESC, and by the Company,
and will continue to be put forth by the Company, to maintain the secrecy of
the Confidential Information, all of which is and shall remain the Company’s
sole property.

(d)           Scope and Duration.  The Company specifically
acknowledges that the restrictions in this Section 5 on the Employee’s use or
disclosure of Confidential Information do not, and shall not be construed to,
restrict in any way the Employee’s ability to be employed by or otherwise
associated with any other person, entity, firm or company engaged in the Steel
Business following the employee’s termination of employment with the Company.
The Employee’s obligations under this Section 5(c) will survive termination of Employee’s
employment hereunder.

6.             Termination
of Employment.

(a)           Termination Due to Death.  Employee’s employment with the Company will
automatically terminate immediately upon his death, and Employee’s estate will
be entitled to (i) any earned but unpaid Base Salary to the date of
termination, (ii) any pro rata bonus (as and when determined and as otherwise
payable under the Bonus Plan) for the partial calendar year to the date of
Employee’s death, (iii) unpaid vacation and unreimbursed expenses payable hereunder,
and (iv) the amount set forth in Column A of Schedule 1 attached
hereto and incorporated by reference herein, corresponding to the line
representing the calendar month in which Employee’s death occurred. All
payments shall be made within 30 days of Employee’s termination of employment,
except for the pro rata bonus, which shall be paid within 21⁄2 months of the end
of the fiscal year in which the termination occurred. Except for the foregoing
payment amounts or as otherwise contemplated by the provisions of Section 6(g),
Employee shall be entitled to no other compensation, benefits or payments.

(b)           Termination Due to Disability.  If,
during the Term, the Employee incurs a “Disability” as defined herein, the
Company, in the exercise of its sole discretion, shall be

 4
 

entitled to terminate
Employee’s employment hereunder, immediately upon written notice to the
Employee of such decision, subject, however, to the payment to the Employee of (i)
any earned but unpaid Base Salary to the date of termination, (ii) any pro rata
bonus (as and when determined and otherwise payable under the Bonus Plan) for
the partial calendar year to the date of such notice, (iii) unpaid vacation and
unreimbursed expenses payable hereunder, and (iv) the amount set forth in Column A
of Schedule 1 corresponding to the line representing the calendar month
in which termination for Disability hereunder is determined to have occurred.
For purposes of this Agreement, “Disability” shall mean a physical or mental
impairment that entitles the Employee to receive benefits under the Company’s
long-term disability plan. The Employee shall be deemed “Disabled” for purposes
of this Agreement, and his employment with the Company shall terminate, upon
receipt by the Company of written notification from the administrator of the
Company’s long-term disability plan that the administrator has determined that
the Employee is disabled for purposes of that plan and entitled to the payment
of benefits thereunder. All payments shall be made within 30 days of Employee’s
termination of employment, except for the pro rata bonus, which shall be paid
within 21⁄2 months of the end of the fiscal year in which the termination
occurred. Except for the foregoing payment amounts or as otherwise contemplated
by the provisions of Section 6(g), Employee shall be entitled to no other
compensation, benefits or payments.

(c)           Termination
by Company for Cause.  During
the Term, the Company shall be  entitled to terminate Employee’s
employment hereunder for “Cause,” as defined below, by providing written notice
to the Employee of such decision. For purposes of this Agreement, Cause shall
mean (i) the commission by the Employee of an act of malfeasance, dishonesty,
fraud or breach of trust against the Company or any of its affiliates,
employees, clients or suppliers, (ii) the breach by the Employee of any of the
material obligations set forth in Sections 3, 5 or 8 of this Agreement, after a
written demand by the Company for correction of such breach is delivered to the
Employee, which specifically identifies the section or sections of the
Agreement which the Company asserts have been breached and the manner in which
the Company asserts that the Employee has breached the obligations referenced
therein, which breach is not cured by the Employee within thirty (30) days of
his receipt of such written demand; (iii) the Employee’s willful and continued
failure, neglect or refusal to perform substantially his material duties and
responsibilities hereunder (other than by reason of a Disability), after a
written demand by the Company for substantial performance is delivered to the
Employee, which specifically identifies the manner in which the Company asserts
that the Employee has not substantially performed, which willful and continued
failure to perform is not cured by the Employee within thirty (30) days of his
receipt of such written demand; and (iv) the Employee’s indictment, conviction
of or plea of guilty or no contest to any felony or any crime involving moral
turpitude.

Upon termination of this Agreement
for Cause, the Company shall pay the Employee any earned but unpaid Base Salary
to the date of termination, any pro rata bonus for the partial calendar year to
the date of termination (as and when determined and as otherwise payable under
the Bonus Plan), and any unpaid vacation and any unreimbursed expenses
otherwise payable hereunder. All such payments shall be made within 30 days of
Employee’s termination of employment, except for the pro rata bonus, which
shall be paid within 21/2 months of the end of the fiscal year in which
the termination occurred. Except for the foregoing payment amounts or

 5
 

as otherwise contemplated by
the provisions of Section 6(g), Employee shall be entitled to no other
compensation, benefits or payments.

(d)           Termination by Employee During Term.

(i)            The
Employee may voluntarily terminate employment with the Company without reason
at any time during the Term, and shall be entitled to (w) earned but unpaid
Base Salary to the date of termination, (x) any pro rata bonus (as and when
determined and as otherwise payable under the Bonus Plan) for the partial
calendar year to the date of termination, (y) any unpaid vacation and
unreimbursed expenses otherwise payable hereunder, and (z) the amount set forth
in Column A of Schedule 1, corresponding to the line representing
the calendar month in which the termination has occurred. All payments shall be
made within 30 days of Employee’s termination of employment, except for the pro
rata bonus, which shall be paid within 21⁄2 months of the end of the fiscal year
in which the termination occurred. Except for the foregoing payment amounts or
as otherwise contemplated by the provisions of Section 6(g), Employee shall be
entitled to no other compensation, benefits or payments.

(ii)           Notwithstanding
the forgoing, the Employee may voluntarily terminate employment with the
Company if such termination is for “Good Reason,” as defined below. In such
event, the Employee shall not receive the payments described in Section 6(d)(i)
above but will instead receive payments equal in amount to those which the
Employee would have received if his employment had been terminated by the
Company without Cause pursuant to Section 6(e) on the date on which the
Employee delivers his written notice of termination under this Section 6(d)(ii)
(as described below). For purposes of this provision, Good Reason shall mean
the occurrence, without the Employee’s consent, of any of the following events:
(w) the assignment to the Employee of duties that are significantly and
materially different from, and that result in a demotion of the Employee or a
substantial diminution of, the duties specified in Section 3 of this Agreement,
(x) any requirement by the Company that the Employee relocate more than 50
miles from the Employee’s workplace without the consent of the Employee, in
which Good Reason shall be deemed to have occurred on the date the Company
communicates such requirement (either in writing or otherwise), (y) any failure
by the Company to provide the Employee with the compensation and benefits
described in Section 4 (including any reduction in the Employee’s Base Salary
in violation of Section 4(a)), or (z) a material breach of this Agreement by
the Company (including the failure of any successor to the Company to assume
this Agreement). The Employee must, however, provide written notice to the
Company of any circumstance he claims to constitute Good Reason for termination
hereunder, and, thereafter, the Employee shall not be entitled to  terminate
this Agreement and his employment hereunder for Good Reason if, within the 30
days period following the Company’s receipt from the Employee of his written
notice of the facts he claims to constitute Good Reason, the Company has cured
the alleged deficiency or otherwise resolved the issue or issues to the
reasonable satisfaction of the Employee.

(e)           Termination
by Company Without Cause.  If,
during the Term, the Company terminates this Agreement and Employee’s
employment hereunder, without Cause, the

 6
 

Employee shall be entitled to
(w) unpaid Base Salary to the date of termination, (x) the pro rata portion of
the bonus (as and when determined and as otherwise payable under the Bonus
Plan) for the partial calendar year to the date of termination, (y) any unpaid
vacation and unreimbursed expenses otherwise payable hereunder, and (z) the sum
of the amounts set forth in Columns A and B of Schedule 1,
corresponding to the line representing the calendar month in which the
termination has occurred. All such payments shall be made within 30 days of
Employee’s termination of employment, except for the pro rata bonus, which
shall be paid within 2 1/2 months of the end of the fiscal year in which the
termination occurred. Except for the foregoing payment amounts or as otherwise
contemplated by the provisions of Section 6(g), Employee shall be entitled to
no other compensation, benefits or payments.

(f)            Stock Options.  From and after termination of
employment hereunder, regardless of whether by the Company or by the Employee
and whether or not for Cause or for Good Reason, the Employee shall not be
entitled to any further grants of Company Stock Options. With respect to Stock
Options that had already been granted to the Employee, termination of
employment by the Company without Cause (Section 6(e)) or termination of
employment by the Employee for Good Reason (Section 6(d)(ii)) shall cause all
unvested Stock Options to become fully vested and nonforfeitable and shall
cause such Stock Options to be exercisable according to their terms (as
described in Section 4(c)).

(g)           Other Rights.  This Agreement shall not
prevent or limit the Employee’s continuing or future participation in any
benefit, bonus, incentive or other plans, if any, provided by the Company or
any of its affiliates .and for which the Employee may qualify, nor shall this
Agreement limit or otherwise affect such rights as the Employee has under any
other agreements with the Company or any of its affiliates. Amounts which are
vested benefits or which the Employee is otherwise entitled to receive under
the terms of any plan of the Company or any of its affiliates and any other
payment or benefit required by law at or after termination of employment shall
be payable in accordance with such plan or applicable law, except as
specifically provided by this Agreement.

(h)           Special Provision Regarding Section
409A of the Internal Revenue Code.  Notwithstanding anything in this Agreement to
the contrary, to the extent that any amount payable under this Agreement may
constitute an amount payable under a “nonqualified deferred compensation plan,”
as defined in Section 409A of the Internal Revenue Code of 1986, as amended,
(the “Code”) such payment will be made by the Company in compliance with any  applicable
requirements of Code Section 409A (including the requirement that payment be
delayed for six (6) months following the Employee’s “separation of service” if
the Employee is a “specified employee” under Code Section 409A, to the extent
applicable).

7.             Return of Company Property.  Upon the termination of the Employee’s employment with the Company (whether upon the
expiration of the Term or thereafter), or at any time during such employment,
upon request by the Company, the Employee will promptly deliver to the Company
(or its representative) and not keep in his possession, recreate, or deliver to
any other person or entity, any and all property that belongs to the Company
and/or its affiliates and which is in the Employee’s possession as a result of
his employment with the Company, including, without limitation, computer
hardware and software, pagers, PDA’s, Blackberries, cell phones, other
electronic equipment, records, data, client lists and information,

 7
 

supplier lists and
information, notes, reports, correspondence, financial information, account
information, product information, files, electronically-stored information, and
other documents and information, including any and all copies of the foregoing.

8.         Assignment of Intellectual
Property Rights.  Employee hereby
assigns to the  Company all of Employee’s fight, title and
interest, including any copyrights and patents or copyrightable and patentable
ideas, in and to any idea, invention, design, work of authorship, or other
intellectual property made or conceived during his employment hereunder or by
his predecessor employer, RESC, whether made solely or jointly by Employee, or
created wholly or only in part by Employee, and whether or not any such rights
are patentable, copyrightable or susceptible to other forms of protection, so
long as such fights pertain to the Company’s actual or anticipated business
interests or are suggested by or result from any work performed by Employee on
the Company’s behalf. In connection with the foregoing, Employee will promptly
disclose any such ideas or rights to the Company and, on the Company’s request,
will promptly execute any assignment of title to the Company or its designee
and anything else reasonably necessary to enable the Company or its designee to
secure such intellectual property fights as are possible with respect to such
idea, concept or right.

9.             Enforcement.  In addition to any other
remedies available to the Company, the provisions of this Agreement may be
enforced by injunction (a) to restrain any violation by Employee and all
persons acting for or with Employee and (b) to compel specific performance of
the terms and conditions of this Agreement. Employee certifies that he has had
the opportunity to discuss this Agreement with such legal advisers as chosen
and that he understands its provisions and has entered into this Agreement
freely and voluntarily.

10.          Applicable Law.  This
Agreement shall be interpreted, construed and governed according to the laws of
the State of West Virginia, regardless of choice of law principles to the
contrary.

11.          Entire Agreement;
Amendments.  This Agreement
discharges and cancels all previous agreements between the Employee and RESC,
including, without limitation, the Executive Employment Continuity Agreement
and all amendments thereto, and the Management Incentive Plan, relating to
Employee’s employment or the rights to which Employee would have been entitled
from and after the Effective Date, as well as all previous or contemporary oral
or written agreements between the Employee and the Company, and constitutes the
entire agreement between the parties with regard to the subject matter hereof.
No agreements, representations or statements of any party not contained herein
shall be binding on either party, and no amendment or variation of the terms
and conditions of this Agreement shall be valid unless in writing and signed by
both parties.

12.          Assignability.  This Agreement and the rights
and duties created hereunder shall not be assignable or delegable by Employee.
The Company may, at its option and without Employee’s consent, assign its
fights and duties hereunder to any successor entity, Company affiliate or
subsidiary, or any transferee of the Company’s assets.

13.          No Waiver.  No failure or delay by any party to this
Agreement to enforce any rights specified hereunder shall operate as a waiver
of such right, nor will any single or partial

 8
 

exercise of a right preclude
any further or later enforcement of the same right within the period of the
applicable statute of limitations.

14.          Notices.  All notices and other communications provided
for or contemplated by this Agreement shall be in writing and shall be deemed
to have been duly given when delivered and received by the other party, or when
sent by recognized overnight courier, or by faxed communication (with overnight
delivery of a hard copy thereof) to the following addresses and/or contact
numbers:

	
  

  	
  If to the Company:

  	
   

  	
  Steel Dynamics, Inc.

  
	
   

  	
   

  	
   

  	
  Attn: Gary
  Heasley, CFO

  
	
   

  	
   

  	
   

  	
  6714 Pointe
  Inverness Way, Suite 200

  
	
   

  	
   

  	
   

  	
  Fort Wayne, IN
  46804

  
	
   

  	
   

  	
   

  	
  Phone: 

  	
  260-459-3553

  
	
   

  	
   

  	
   

  	
  Fax: 

  	
  260-969-3592

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If to Employee:

  	
   

  	
  Timothy R. Duke

  
	
   

  	
   

  	
   

  	
  5387 Longwood
  Road

  
	
   

  	
   

  	
   

  	
  Huntington, West
  Virginia 25705

  

 

or to such other address or
contact number as either party hereto will have furnished to the other in writing
in accordance with this Section 14, except that such notice of change of
address or contact number shall be effective only upon receipt.

15.          Counterparts.  This Agreement may be exercised
in any number of counterparts, each of which as so executed shall be deemed to
be an original, and such counterparts shall together be deemed to constitute
but one agreement.

16.            Excise
Tax Indemnification.

(a)           The Employee will provide the Company with written notice
promptly upon receipt of any claim by the Internal Revenue Service or any other
taxing authority (an “IRS Claim”) that would require the payment by the
Employee of the excise tax imposed under Code Section 4999  on “excess
parachute payments” (the “Excise Tax”) in respect of any compensation, benefit,
payment or distribution by the Company, by RESC or by any affiliate of the
Company to or for the benefit of the Employee or his legal representatives and
dependents, whether payable or distributable pursuant to the terms of this
Agreement or pursuant to any other plan, agreement, program or arrangement (a “Parachute
Payment”). In such event, the Company, at its own cost and expense, shall be
entitled to request that the Employee cooperate with the Company in challenging
the Internal Revenue Service’s position, administratively or in court, and have
the Employee authorize the Company’s tax representatives (the “Company’s
Representatives”) to represent the Employee in such matter before the Internal
Revenue Service (by an appropriate Power of Attorney Form 2848 or, the
equivalent form at any time or from at any time to time). Furthermore, the
Employee will cooperate with the Company, as required in connection with such
challenge. For its part, the Company shall pay directly all legal, accounting,
and other costs and expenses of the Company’s Representatives and hold the
Employee harmless from and against all such costs and expenses, as well as the
amounts

 9
 

required to be paid pursuant
to the provisions of Section 16(b) in the event that any Excise Taxes and
related amounts are determined to have been payable.

(b)           The
Company will pay to the Employee (or his legal representative, if applicable)
at least seven (7) days before the deadline for payment of the amount of Excise
Taxes and related amounts that are determined to be due and owing by the
Employee, either (1) if the Employee acknowledges that such amounts are due and
payable and he elects not to contest the IRS Claim and if the Company does not
elect to cause the Employee to initiate a challenge to the IRS Claim, or (2) in
the event of a challenge, as described herein, such Excise Taxes and related
amounts and any additional amounts are finally determined to be due and owing,
an amount (the “Gross-Up Payment”) equal to the sum of (x) plus (y) minus (z)
where:

(x) is an amount equal to the total amount of Excise Tax, interest and
penalties specified in the IRS Claim or otherwise finally determined to be due
and owing with respect to any Parachute Payments; and

(y) is the amount determined under the following formula:

(x) multiplied by ((Tax Rate/(1-Tax Rate)), and

(z) is an amount equal to Employee’s federal tax benefit of deducting
on his state tax return (and local tax return, if applicable) any additional
taxes payable by Employee as a result of this Section 16.

For purposes of this Section
16, the term “Tax Rate” shall mean the sum of (A) the highest marginal federal
personal income tax rate under Code Section 1 applicable to income of the
character of the Parachute Payments; (B) the sum of the highest marginal state
and local income tax rates for the state and locality in which the Employee is
domiciled which are applicable to income of the character of the Parachute
Payments; (C) the hospital insurance tax rate under Code Section 311l(b), and
(D) the excise tax rate under Code Section 4999. Notwithstanding the foregoing,
the Company shall not be obligated to make a Gross-Up Payment with respect to
the amount of Excise Tax, interest and penalties specifically allocable to a
Parachute Payment made pursuant to either Section 6(c) or Section 6(d)(i) of
this Agreement.

(c)           The
Company’s obligations under this Section 16 will survive termination of the
Employee’s employment hereunder.

17.          Interest.  If the Company does not pay any
amount due to the Employee under this Agreement within three days after such
amount became due and owing, interest shall accrue on such amount from the date
it became due and owing until the date of payment at an annual rate equal to
200 basis points above the prime commercial lending rate published in The Wall
Street Journal in effect from time to time during the period of such
nonpayment.

18.          No Set-off or Mitigation.  The
Employee’s right to receive when due the payments and other benefits provided
for under this Agreement shall not be subject to any right of set-off. The
Employee shall not have any duty to mitigate the amounts payable by the Company
under this Agreement by seeking new employment following termination. Except as
specifically provided in this Agreement, all amounts payable pursuant to this
Agreement shall be

 10
 

paid without reduction
regardless of any amounts of salary, compensation or other amounts which may be
paid or payable to the Employee as the result of the Employee’s employment with
another employer.

19.          Successors.  The Agreement will be binding
upon and inure to the benefit of the Company, the Employee and their respective
heirs, representatives and successors. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to
assume expressly and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement, the term “Company” means
the Company as hereinbefore defined and any successor to its business and/or
assets which assumes and agrees to perform this Agreement by operation of law,
or otherwise.

20.          Effectiveness.  Notwithstanding any other provision of
this Agreement to the contrary, no provision of this Agreement shall take
effect or otherwise be binding on the parties to this Agreement until the
Effective Date. This Agreement shall immediately terminate and shall have no
further force or effect if the Merger Agreement is terminated.

 11
 

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

	
  STEEL DYNAMICS, INC.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Keith Busse

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
    Keith Busse

  	
   

  	
   

  	
  /s/ Timothy R. Duke

  	
   

  	
   

  
	
  Its: 

  	
    President &CEO

  	
   

  	
  Timothy R. Duke

  	
   

  	
   

  
	
  Date: 

  	
   October 18,
  2005

  	
   

  	
  Date:    
  10/19/2005

  	
   

  	
   

  

 

 12

SCHEDULE
1

	
  

  	
   

  	
  Calendar Month

  	
   

  	
  A

  	
   

  	
  B

  	
   

  
	
  1

  	
   

  	
  January
  2006

  	
   

  	
  $

  	
  975,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  2

  	
   

  	
  February
  2006

  	
   

  	
  $

  	
  934,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  3

  	
   

  	
  March
  2006

  	
   

  	
  $

  	
  894,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  4

  	
   

  	
  April
  2006

  	
   

  	
  $

  	
  853,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  5

  	
   

  	
  May
  2006

  	
   

  	
  $

  	
  813,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  6

  	
   

  	
  June
  2006

  	
   

  	
  $

  	
  772,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  7

  	
   

  	
  July
  2006

  	
   

  	
  $

  	
  731,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  8

  	
   

  	
  August
  2006

  	
   

  	
  $

  	
  691,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  9

  	
   

  	
  September
  2006

  	
   

  	
  $

  	
  650,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  10

  	
   

  	
  October
  2006

  	
   

  	
  $

  	
  609,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  11

  	
   

  	
  November
  2006

  	
   

  	
  $

  	
  569,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  12

  	
   

  	
  December
  2006

  	
   

  	
  $

  	
  528,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  13

  	
   

  	
  January
  2007

  	
   

  	
  $

  	
  488,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  14

  	
   

  	
  February
  2007 

  	
   

  	
  $

  	
  447,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  15

  	
   

  	
  March
  2007

  	
   

  	
  $

  	
  406,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  16

  	
   

  	
  April
  2007

  	
   

  	
  $

  	
  366,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  17

  	
   

  	
  May
  2007

  	
   

  	
  $

  	
  325,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  18

  	
   

  	
  June
  2007

  	
   

  	
  $

  	
  284,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  19

  	
   

  	
  July
  2007

  	
   

  	
  $

  	
  244,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  20

  	
   

  	
  August
  2007

  	
   

  	
  $

  	
  203,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  21

  	
   

  	
  September
  2007

  	
   

  	
  $

  	
  163,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  22

  	
   

  	
  October
  2007

  	
   

  	
  $

  	
  122,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  23

  	
   

  	
  November
  2007

  	
   

  	
  $

  	
  81,000

  	
   

  	
  $

  	
  650,000

  	
   

  
	
  24

  	
   

  	
  December 2007

  	
   

  	
  $

  	
  41,000

  	
   

  	
  $

  	
  650,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]