Document:

Registration Rights Agreement dated August 12, 2004

 Exhibit 4.3 
  

$80,000,000 
  
 SHEFFIELD STEEL CORPORATION 
  
 $80,000,000 11 3/8% of Senior Secured Notes due 2011 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 August 12, 2004 
  
 JEFFERIES & COMPANY, INC. 
 520 Madison Avenue 
 12th Floor 
 New York, New York 10022 
  
 Ladies and Gentlemen: 
  
 SHEFFIELD STEEL CORPORATION, a Delaware corporation (the “Company”), is issuing and selling to Jefferies
& Company, Inc. (the “Initial Purchaser”), upon the terms set forth in the Purchase Agreement dated August 5, 2004, by and among the Company, the Initial Purchaser and the guarantor named therein (the “Purchase
Agreement”), $80,000,000 aggregate principal amount of 11 3/8% Senior Secured Notes due 2011 issued by the Company (each, a “Note” and collectively, the “Notes”). As an inducement to the Initial Purchaser
to enter into the Purchase Agreement, the Company and Sand Springs Railway Company (the “Railway”), an Oklahoma corporation, as guarantor, agree with the Initial Purchaser, for the benefit of the Holders (as defined below) of the Notes
(including, without limitation, the Initial Purchaser), as follows: 
  

	1.	Definitions 

  
 Capitalized terms that are used herein without definition and are defined in the Purchase Agreement shall have the respective meanings ascribed to them in
the Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings: 
  
 Additional Interest: See Section 4(a). 
  
 Advice: See Section 5(u). 
  
 Agreement: This Registration Rights Agreement, dated as of the Closing Date, between the Company and the Initial Purchaser. 
  
 Applicable Period: See Section 2(e). 
  
 Business Day: A day that is not a Saturday, a Sunday or a day on which
banking 
  

 Registration Rights Agreement 

 institutions in the City of New York are authorized or required by law or executive order to be closed. 
  
 Collateral Agreements: Shall have the meaning set forth in the
Indenture. 
  
 Company: See the introductory paragraph to
this Agreement. 
  
 Day: Unless otherwise expressly
provided, a calendar day. 
  
 Delay Period: See Section
5(u). 
  
 Effectiveness Date: The 210th day after the Issue Date. 
  
 Effectiveness Period: See Section 3(a). 
  
 Event Date: See Section 4(b). 
  
 Exchange Act: The Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder. 
  
 Exchange Notes: Senior Secured Notes due 2011 of the Company,
identical in all material respects to the Notes, including the guarantees endorsed thereon, except for references to series and restrictive legends. 
  
 Exchange Offer: See Section 2(a). 
  
 Exchange Registration Statement: See Section 2(a). 
  
 Filing Date: The 120th day after the Issue Date. 
  
 Guarantor: The Railway and its successors that guarantee the obligations of the Company under the Notes and Indenture. 
  
 Holder: Any registered holder of Registrable Notes. 
  
 Indemnified Party: See Section 7(c). 
  
 Indemnifying Party: See Section 7(c). 
  
 Indenture: The Indenture, dated as of the Closing Date, among the Company, the Railway and U.S. Bank National Association, as trustee, pursuant to
which the Notes are being issued, as amended or supplemented from time to time in accordance with the terms hereof. 
  
 Initial Purchaser: See the introductory paragraph to this Agreement. 
  
 Initial Shelf Registration: See Section 3(a). 
  
 Inspectors: See Section 5(o). 
  

 Registration Rights Agreement 

 Issue Date: August 12, 2004 
  
 Lien: Shall have the meaning set forth in the Indenture. 
  
 Losses: See Section 7(a). 
  
 NASD: National Association of Securities Dealers, Inc. 
  
 Notes: See the introductory paragraph to this Agreement. 

 
 Participating Broker-Dealer: See Section 2(e). 
  
 Person: An individual, trustee, corporation, partnership, limited
liability company, joint stock company, trust, unincorporated association, union, business association, firm, government or agency or political subdivision thereof, or other legal entity. 
  
 Private Exchange: See Section 2(f). 
  
 Private Exchange Notes: See Section 2(f). 
  
 Prospectus: The prospectus included in any Registration Statement (including, without limitation, a prospectus that
discloses information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect
to the terms of the offering of any portion of the Registrable Notes covered by such Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference
or deemed to be incorporated by reference in such Prospectus. 
  
 Purchase Agreement: See the introductory paragraph to this Agreement. 
  
 Records: See Section 5(o). 
  
 Registrable Notes: (i) Notes, (ii) Private Exchange Notes and (iii) Exchange Notes received in the Exchange Offer as to which Section 2(j)(iv) is applicable, in each case, that may not be sold without restriction under federal or
state securities laws until, in each case, the earliest to occur of (i) a Registration Statement (other than, with respect to any Exchange Note as to which Section 2(j)(iv) hereto is applicable, the Exchange Offer Registration Statement) covering
such Note, Exchange Note or Private Exchange Note has been declared effective by the SEC and such Note, Exchange Note or such Private Exchange Note, as the case may be, has been disposed of in accordance with such effective Registration Statement,
(ii) such Note has been exchanged pursuant to the Exchange Offer for an Exchange Note or Exchange Notes that may be resold without restriction under state and federal securities laws, (iii) such Note, Exchange Note or Private Exchange Note, as the
case may be, ceases to be outstanding for purposes of the Indenture or (iv) such Note, Exchange Note or Private Exchange Note, as the case may be, may be resold without restriction pursuant to Rule 144(k) (as amended or replaced) 
  

 Registration Rights Agreement 

 under the Securities Act. 
  
 Registration Statement: Any registration statement of the Company filed with the SEC under the Securities Act (including, but not limited to, the
Exchange Registration Statement, the Shelf Registration and any Subsequent Shelf Registration) that covers any of the Registrable Notes pursuant to the provisions of this Agreement, including the Prospectus, amendments and supplements to such
registration statement, including post-effective amendments, all exhibits and all material incorporated by reference or deemed to be incorporated by reference in such registration statement. 
  
 Rule 144: Rule 144 promulgated under the Securities Act, as such Rule
may be amended from time to time, or any similar rule (other than Rule 144A) or regulation hereafter adopted by the SEC providing for offers and sales of securities made in compliance therewith resulting in offers and sales by subsequent holders
that are not affiliates of an issuer or such securities being free of the registration and prospectus delivery requirements of the Securities Act. 
  
 Rule 144A: Rule 144A promulgated under the Securities Act, as such Rule may be amended from time to time, or any similar rule (other than Rule 144)
or regulation hereafter adopted by the SEC. 
  
 Rule 415:
Rule 415 promulgated under the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC. 
  
 Rule 430A: Rule 430A promulgated under the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the SEC. 
  
 SEC: The Securities and
Exchange Commission. 
  
 Securities: The Notes, the
Exchange Notes and the Private Exchange Notes. 
  
 Securities
Act: The Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder. 
  
 Shelf Notice: See Section 2(j). 
  
 Shelf Registration: See Section 3(b). 
  
 Subsequent Shelf Registration: See Section 3(b). 
  
 TIA: The Trust Indenture Act of 1939, as amended. 
  
 Trustee: The trustee under the Indenture and, if existent, the trustee under any indenture governing the Exchange Notes and Private Exchange Notes
(if any). 
  
 Underwritten Registration or Underwritten
Offering: A registration in which 
  

 Registration Rights Agreement 

 securities of the Company are sold to an underwriter for reoffering to the public. 
  

	2.	Exchange Offer 

  

	 	(a)	Unless the Exchange Offer would not be permitted by applicable laws or a policy of the SEC, the Company shall (and shall cause the Guarantor to) (i) prepare and file with the SEC no
later than the Filing Date, a registration statement (the “Exchange Registration Statement”) on an appropriate form under the Securities Act with respect to an offer (the “Exchange Offer”) to the Holders of Notes to
issue and deliver to such Holders, in exchange for the Notes, a like principal amount of Exchange Notes, (ii) use its reasonable best efforts to cause the Exchange Registration Statement to become effective no later than the Effectiveness Date,
(iii) use its reasonable best efforts to keep the Exchange Registration Statement effective until the consummation of the Exchange Offer in accordance with its terms, and (iv) commence the Exchange Offer and use its reasonable best efforts to issue
on or prior to 30 Business Days after the date on which the Exchange Registration Statement is declared effective, Exchange Notes in exchange for all Notes tendered prior thereto in 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. 

  

	 	(b)	The Exchange Notes shall be issued under, and entitled to the benefits of, (i) the Indenture or a trust indenture that is identical to the Indenture (other than such changes as are
necessary to comply with any requirements of the SEC to effect or maintain the qualifications thereof under the TIA) and (ii) the Collateral Agreements. 

  

	 	(c)	Interest on the Exchange Notes and Private Exchange Notes will accrue from the last interest payment due date on which interest was paid on the Notes surrendered in exchange
therefor or, if no interest has been paid on the Notes, from the date of original issue of the Notes. Each Exchange Note and Private Exchange Note shall bear interest at the rate set forth thereon; provided, that interest with respect to the
period prior to the issuance thereof shall accrue at the rate or rates borne by the Notes from time to time during such period. 

  

	 	(d)	The Company will require each Holder as a condition to participation in the Exchange Offer to represent (i) that any Exchange Notes received by it will be acquired in the ordinary
course of its business, (ii) that such Holder has not entered and will not enter into any arrangement or understanding with any Person to participate in the distribution (within the meaning of the Securities Act) of the Exchange Notes in violation
of the provisions of the Securities Act, (iii) that such Holder is not an “affiliate” of the Company or any Guarantor within the meaning of Rule 405 of the Securities Act, or, if it is an “affiliate” of the Company or any
Guarantor, 

  

 Registration Rights Agreement 

 that it will comply with the registration and prospectus delivery requirements of the Securities Act to
the extent applicable to it, (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 Notes and (v) if such Holder is a Participating Broker-Dealer, that it will deliver a
Prospectus in connection with any resale of the Exchange Notes. 
  

	 	(e)	The Company shall include within the Prospectus contained in the Exchange Registration Statement a section entitled “Plan of Distribution” reasonably acceptable to the
Initial Purchaser which shall contain a summary statement of the positions taken or policies made by the staff of the SEC with respect to the potential “underwriter” status of any broker-dealer that is the beneficial owner (as defined in
Rule 13d-3 under the Exchange Act) of Exchange Notes received by such broker-dealer in the Exchange Offer for its own account in exchange for Notes that were acquired by it as a result of market-making or other trading activity (a
“Participating Broker-Dealer”), whether such positions or policies have been publicly disseminated by the staff of the SEC or such positions or policies, in the judgment of the Initial Purchaser, represent the prevailing views of
the staff of the SEC. Such “Plan of Distribution” section shall also allow, to the extent permitted by applicable policies and regulations of the SEC, the use of the Prospectus by all Persons subject to the prospectus delivery requirements
of the Securities Act, including, to the extent so permitted, all Participating Broker-Dealers, and include a statement describing the manner in which Participating Broker-Dealers may resell the Exchange Notes. The Company shall use its reasonable
best efforts to keep the Exchange Registration Statement effective and to amend and supplement the Prospectus contained therein, in order to permit such Prospectus to be lawfully delivered by all Persons subject to the prospectus delivery
requirements of the Securities Act for such period of time as such Persons must comply with such requirements in order to resell the Exchange Notes, but which in no event shall exceed 180 days from the Issue Date (the “Applicable
Period”). 

  

	 	(f)	If, upon consummation of the Exchange Offer, the Initial Purchaser holds any Notes acquired by it and having the status of an unsold allotment in the initial distribution, the
Company (upon the written request from the Initial Purchaser) shall, simultaneously with the delivery of the Exchange Notes in the Exchange Offer, issue and deliver to the Initial Purchaser, in exchange (the “Private Exchange”) for
the Notes held by the Initial Purchaser, a like principal amount of Senior Secured Notes that are identical to the Exchange Notes except for the existence of restrictions on transfer thereof under the Securities Act and securities laws of the
several states of the United States (the “Private Exchange Notes”) (and which are issued pursuant to the same indenture as the Exchange Notes). The Company shall use its reasonable best efforts to cause the CUSIP Service

  

 Registration Rights Agreement 

 Bureau to issue the same CUSIP number for the Private Exchange Notes as was issued for the Exchange
Notes. 

	 	(g)	In connection with the Exchange Offer, the Company shall (and shall cause the Guarantor to): 

  

	 	(i)	mail to each Holder a copy of the Prospectus forming part of the Exchange Registration Statement, together with an appropriate letter of transmittal that is an exhibit to the
Exchange Offer Registration Statement, and any related documents; 

  

	 	(ii)	keep the Exchange Offer open for not less than 20 Business Days after the date notice thereof is mailed to the Holders (or longer if required by applicable law)

  

	 	(iii)	utilize the services of a depository for the Exchange Offer with an address in the Borough of Manhattan, the City of New York, which may be the Trustee or an affiliate thereof;

  

	 	(iv)	permit Holders to withdraw tendered Registrable Notes at any time prior to the close of business, New York time, on the last Business Day on which the Exchange Offer shall remain
open; 

  

	 	(v)	disclose that any Registrable Notes eligible to be tendered but not tendered will remain outstanding and continue to accrue interest but will not retain any rights under this
Agreement; and 

  

	 	(vi)	otherwise comply in all material respects with all applicable laws. 

  

	 	(h)	As soon as practicable after the close of the Exchange Offer or the Private Exchange (and the expiration of any guaranteed delivery period), as the case may be, the Company shall:

  

	 	(i)	accept for exchange all Registrable Notes validly tendered pursuant to the Exchange Offer or the Private Exchange, as the case may be, and not validly withdrawn;

  

	 	(ii)	deliver to the Trustee for cancellation all Registrable Notes so accepted for exchange; and 

  

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

  

	 	(i)	The Exchange Notes and the Private Exchange Notes may be issued under (i) the Indenture or (ii) an indenture identical to the Indenture (other than 

  

 Registration Rights Agreement 

 such changes as are necessary to comply with any requirements of the SEC to effect or maintain the
qualification thereof under the TIA), which in either event will provide that the Exchange Notes will not be subject to the transfer restrictions set forth in the Indenture, that the Private Exchange Notes will be subject to the transfer
restrictions set forth in the Indenture, and that the Exchange Notes, the Private Exchange Notes and the Notes, if any, will be deemed one class of security (subject to the provisions of the Indenture) and entitled to participate in all the security
granted by the Company pursuant to the Collateral Agreements and in any Guarantee (as such terms are defined in the Indenture) on an equal and ratable basis. 
  

	 	(j)	If: (i) because of any change in law or in currently prevailing interpretations of the staff of the SEC, the Company is not permitted to effect the Exchange Offer (after the Company
has complied with the procedures set forth herein); (ii) subsequent to the consummation of the Private Exchange, any Holder of Private Exchange Notes so requests; (iii) the Exchange Offer is not consummated within 30 Business Days after the
Effectiveness Date; or (iv) in the case of (A) any Holder not permitted by applicable law or SEC policy to participate in the Exchange Offer, (B) any Holder participating in the Exchange Offer that receives Exchange Notes that may not be sold
without restriction under state and federal securities laws (other than due solely to the status of such Holder as an affiliate of the Company within the meaning of the Securities Act) or (C) any broker-dealer that holds Notes acquired directly from
the Company or any of its affiliates and, in each such case contemplated by this clause (iv), such Holder notifies the Company within 90 days of consummation of the Exchange Offer, then the Company shall promptly (and in any event within five
Business Days) deliver to the Holders (or in the case of an occurrence of any event described in clause (ii) or (iv) of this Section 2(j), to any such Holder) and the Trustee notice thereof (the “Shelf Notice”) and shall file an
Initial Shelf Registration pursuant to Section 3. 

  

	3.	Shelf Registration 

  
 If a Shelf Notice is delivered pursuant to Section 2(j)(i) or (iii), then this Section 3 shall apply to all Registrable Notes. Otherwise, upon
consummation of the Exchange Offer in accordance with Section 2, the provisions of Section 3 shall apply solely with respect to (i) Notes held by any Holder thereof not permitted to participate in the Exchange Offer, (ii) Notes held by any
broker-dealer that acquired such Notes directly from the Company or any of its affiliates and (iii) Exchange Notes that are not freely tradeable as contemplated by Section 2(j)(iv) hereof, provided in each case that the relevant Holder has duly
notified the Company within 90 days of the Exchange Offer as required by Section 2(j)(iv). 
  

	 	(a)	Initial Shelf Registration. The Company shall, as promptly as practicable, file with the SEC a Registration Statement for an offering to be made on a

  

 Registration Rights Agreement 

 continuous basis pursuant to Rule 415 covering all of the Registrable Notes (the “Initial Shelf
Registration”). If the Company (and the Guarantor) has not yet filed an Exchange Registration Statement, the Company shall (and shall cause the Guarantor to) file with the SEC the Initial Shelf Registration on or prior to the Filing Date
and shall use its best efforts to cause such Initial Shelf Registration to be declared effective under the Securities Act on or prior to the Effectiveness Date. Otherwise, the Company shall (and shall cause the Guarantor to) use its best efforts to
file with the SEC the Initial Shelf Registration within 30 days of the delivery of the Shelf Notice and shall use its best efforts to cause such Shelf Registration to be declared effective under the Securities Act as promptly as practicable
thereafter (but in no event more than 120 days after delivery of the Shelf Notice). The Initial Shelf Registration shall be on Form S-1 or another appropriate form permitting registration of such Registrable Notes for resale by Holders in the manner
or manners reasonably designated by them (including, without limitation, one or more underwritten offerings). The Company shall not permit any securities other than the Registrable Notes to be included in any Shelf Registration. The Company shall
use its reasonable best efforts to keep the Initial Shelf Registration continuously effective under the Securities Act until the date which is 24 months from the Issue Date (subject to extension pursuant to the last paragraph of Section 5(u) (the
“Effectiveness Period”), or such shorter period ending when (i) all Registrable Notes covered by the Initial Shelf Registration have been sold in the manner set forth and as contemplated in the Initial Shelf Registration, (ii) a
Subsequent Shelf Registration covering all of the Registrable Notes covered by and not sold under the Initial Shelf Registration or an earlier Subsequent Shelf Registration has been declared effective under the Securities Act or (iii) there cease to
be any outstanding Registrable Notes. 
  

	 	(b)	Subsequent Shelf Registrations. If the Initial Shelf Registration or any Subsequent Shelf Registration (as defined below) ceases to be effective for any reason at any time
during the Effectiveness Period (other than because of the sale of all of the securities registered thereunder), the Company shall (and shall cause the Guarantor to) use its best efforts to obtain the prompt withdrawal of any order suspending the
effectiveness thereof, and in any event shall within 45 days of such cessation of effectiveness amend such Shelf Registration in a manner to obtain the withdrawal of the order suspending the effectiveness thereof, or file (and cause the Guarantor to
file) an additional “shelf” Registration Statement pursuant to Rule 415 covering all of the Registrable Notes (a “Subsequent Shelf Registration”). If a Subsequent Shelf Registration is filed, the Company shall (and shall
cause the Guarantor to) use its best efforts to cause the Subsequent Shelf Registration to be declared effective as soon as practicable after such filing and to keep such Subsequent Shelf Registration continuously effective for a period equal to the
number of days in the Effectiveness 

  

 Registration Rights Agreement 

 Period less the aggregate number of days during which the Initial Shelf Registration or any Subsequent
Shelf Registration was previously continuously effective. As used herein the term “Shelf Registration” means the Initial Shelf Registration and any Subsequent Shelf Registrations. 
  

	 	(c)	Supplements and Amendments. The Company shall promptly supplement and amend any Shelf Registration if required by the rules, regulations or instructions applicable to the
registration form used for such Shelf Registration, if required by the Securities Act, or if reasonably requested in writing by the Holders of a majority in aggregate principal amount of the Registrable Notes covered by such Shelf Registration or by
any underwriter of such Registrable Notes. Notwithstanding anything to the contrary herein, if the Company is required to file a post-effective amendment to the Shelf Registration or Subsequent Shelf Registration for the sole purpose of adding
Holders to such Shelf Registration, the Company shall not be required to file such post-effective amendment or new Shelf Registration more frequently than once a fiscal quarter without incurring any Additional Interest. 

  

	 	(d)	Provision of Information. No Holder of Registrable Notes shall be entitled to include any of its Registrable Notes in any Shelf Registration pursuant to this Agreement unless
such Holder furnishes to the Company and the Trustee in writing, within 30 days after receipt of a written request therefor, such information as the Company and the Trustee after conferring with counsel with regard to information relating to Holders
that would be required by the SEC to be included in such Shelf Registration or Prospectus included therein, may reasonably request for inclusion in any Shelf Registration or Prospectus included therein, and no such Holder shall be entitled to
Additional Interest pursuant to Section 4 hereof unless and until such Holder shall have provided such information. 

  

	4.	Additional Interest 

  

	 	(a)	The Company and the Guarantor acknowledge and agree that the Holders of Registrable Notes will suffer damages if the Company or the Guarantor fails to fulfill its material
obligations under Section 2 or Section 3 hereof and that it would not be feasible to ascertain the extent of such damages with precision. Accordingly, the Company and the Guarantor agree to pay additional cash interest on the Notes
(“Additional Interest”) under the circumstances and to the extent set forth below (each of which shall be given independent effect): 

  

	 	(i)	if (A) neither the Exchange Registration Statement nor the Initial Shelf Registration is filed with the SEC on or prior to the Filing Date or (B) notwithstanding that the Company
has consummated or will consummate an Exchange Offer, the Company is required 

  

 Registration Rights Agreement 

 to file an Initial Shelf Registration and such Initial Shelf Registration is not filed on or prior to 30
days of the delivery of a Shelf Notice, then commencing on the day after either such required filing date, Additional Interest shall accrue on the principal amount of the Notes over and above any stated interest at a rate of 0.25% per annum for the
first 90 days immediately following each such filing date, such Additional Interest rate increasing by an additional 0.25% per annum at the beginning of each subsequent 90-day period; provided, however, that (i) in the case of clause (B)
hereof such Additional Interest shall only be with respect to Notes as described in the first paragraph of Section 3 and (ii) no Holder shall be entitled to accrue Additional Interest under both subsection (A) and (B) hereof simultaneously;

  

	 	(ii)	if (A) neither the Exchange Registration Statement nor the Initial Shelf Registration is declared effective by the SEC on or prior to the Effectiveness Date or (B) notwithstanding
that the Company has consummated or will consummate an Exchange Offer, the Company is required to file a Shelf Registration and such Shelf Registration is not declared effective by the SEC on or prior to the 120th day following the date such Shelf
Registration was filed, then, commencing on the day after either such required effective date, Additional Interest shall accrue on the principal amount of the Notes over and above any stated interest at a rate of 0.25% per annum for the first 90
days immediately following the Effectiveness Date, such Additional Interest rate increasing by an additional 0.25% per annum at the beginning of each subsequent 90-day period; provided, however, that (i) in the case of clause (B) hereof such
Additional Interest shall only be with respect to Notes as described in the first paragraph of Section 3 and (ii) no Holder shall be entitled to accrue Additional Interest under both subsection (A) and (B) hereof simultaneously; or

  

	 	(iii)	if (A) the Company has not exchanged Exchange Notes for all Notes validly tendered in accordance with the terms of the Exchange Offer on or prior to 30 Business Days after the
Effectiveness Date or (B) if applicable, a Shelf Registration has been declared effective and such Shelf Registration ceases to be effective at any time prior to the second anniversary of the Closing Date (other than such time as all Notes have been
disposed of thereunder), then Additional Interest shall accrue on the Notes, over and above any stated interest, at a rate of 0.25% per annum of the principal amount of such Notes commencing on (x) the 31st Business Day after the Effectiveness Date,
in the case of (A) above, or (y) the day such Shelf Registration ceases to be effective in the case of (B) above, such Additional Interest rate increasing by 

  

 Registration Rights Agreement 

 an additional 0.25% per annum at the beginning of each such subsequent 90-day period; provided,
however, that (i) in the case of clause (B) hereof such Additional Interest shall only be with respect to Notes as described in the first paragraph of Section 3 and (ii) no Holder shall be entitled to accrue Additional Interest under both
subsection (A) and (B) hereof simultaneously 
  
 provided,
however, that Additional Interest will not accrue under more than one of the foregoing clauses (i), (ii) or (iii) at any one time; provided further, however, that the amount of Additional Interest accruing will not exceed 1.0% per
annum; provided further, however, that (a) upon the filing of the Exchange Registration Statement or a Shelf Registration (in the case of clause (i) above), (b) upon the effectiveness of the Exchange Registration Statement or a Shelf
Registration (in the case of clause (ii) above), or (c) upon the exchange of Exchange Notes for all Notes tendered (in the case of clause (iii) (A) above), or upon the effectiveness of a Shelf Registration which had ceased to remain effective (in
the case of clause (iii) (B) above), Additional Interest on the Notes as a result of such clause (or the relevant subclause thereof), as the case may be, shall cease to accrue. 
  

	 	(b)	The Company shall notify the Trustee within 3 Business Days after each and every date on which an event occurs in respect of which Additional Interest is required to be paid (an
“Event Date”). Any amounts of Additional Interest due pursuant to clause (a)(i), (a)(ii) or (a)(iii) of this Section 4 will be payable in cash, on the dates and in the manner provided in the Indenture and whether or not any
cash interest would then be payable on such date, commencing with the first such semi-annual date occurring after any such Additional Interest commences to accrue. The amount of Additional Interest will be determined by multiplying the applicable
Additional Interest rate by the principal amount of the Notes, multiplied by a fraction, the numerator of which is the number of days such Additional Interest rate was applicable during such period (determined on the basis of a 360-day year
comprised of twelve 30-day months and, in the case of a partial month, the actual number of days elapsed), and the denominator of which is 360. 

  

	5.	Registration Procedures 

  
 In connection with the filing of any Registration Statement pursuant to Sections 2 or 3 hereof, the Company shall (and shall cause the Guarantor to)
effect such registrations to permit the sale of such securities covered thereby in accordance with the intended method or methods of disposition thereof, and pursuant thereto and in connection with any Registration Statement filed by the Company
hereunder, the Company shall (and shall cause the Guarantor to): 
  

	 	(a)	If (1) a Shelf Registration is filed pursuant to Section 3 or (2) a Prospectus 

  

 Registration Rights Agreement 

 contained in an Exchange Registration Statement filed pursuant to Section 2 is required to be delivered
under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period relating thereto, before filing any Registration Statement or Prospectus or any amendments or supplements thereto the Company
shall (and shall cause the Guarantor to), if requested, furnish to and afford the Holders of the Registrable Notes to be registered pursuant to such Shelf Registration Statement, each Participating Broker-Dealer, the managing underwriters, if any,
and each of their respective counsel, a reasonable opportunity to review copies of all such documents (including copies of any documents to be incorporated by reference therein and all exhibits thereto) proposed to be filed (in each case at least 5
Business Days prior to such filing). The Company and the Guarantor shall not file any such Registration Statement or Prospectus or any amendments or supplements thereto in respect of which the Holders must provide information for the inclusion
therein without the Holders being afforded an opportunity to review such documentation if the holders of a majority in aggregate principal amount of the Registrable Notes covered by such Registration Statement, or any such Participating
Broker-Dealer, as the case may be, the managing underwriters, if any, or any of their respective counsel shall reasonably object in writing on a timely basis. A Holder shall be deemed to have reasonably objected to such filing if such Registration
Statement, amendment, Prospectus or supplement, as applicable, as proposed to be filed, contains an untrue statement of a material fact or omits to state any material fact necessary to make the statements therein not misleading or fails to comply
with the applicable requirements of the Securities Act. 
  

	 	(b)	Provide an indenture trustee for the Registrable Notes, the Exchange Notes or the Private Exchange Notes, as the case may be, and cause the Indenture (or other indenture relating to
the Registrable Notes) to be qualified under the TIA not later than the effective date of the first Registration Statement; and in connection therewith, to effect such changes to such indenture as may be required for such indenture to be so
qualified in accordance with the terms of the TIA; and execute, and use its best efforts to cause such 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 such indenture to be so qualified in a timely manner. 

  

	 	(c)	Prepare and file with the SEC such pre-effective amendments and post-effective amendments to each Shelf Registration or Exchange Registration Statement, as the case may be, as may
be necessary to keep such Registration Statement continuously effective for the Effectiveness Period or the Applicable Period, as the case may be; cause the related Prospectus to be supplemented by any Prospectus supplement required by applicable
law, and as so supplemented to be filed pursuant to Rule 424 (or any 

  

 Registration Rights Agreement 

 similar provisions then in force) promulgated under the Securities Act; and comply with the provisions of
the Securities Act and the Exchange Act applicable to them with respect to the disposition of all securities covered by such Registration Statement as so amended or in such Prospectus as so supplemented and with respect to the subsequent resale of
any securities being sold by a Participating Broker-Dealer covered by any such Prospectus. The Company and the Guarantor shall not, during the Applicable Period, voluntarily take any action that would result in selling Holders of the Registrable
Notes covered by a Registration Statement or Participating Broker-Dealers seeking to sell Exchange Notes not being able to sell such Registrable Notes or such Exchange Notes during that period, unless such action is required by applicable law, rule
or regulation or permitted by this Agreement. 
  

	 	(d)	Furnish to such selling Holders and Participating Broker-Dealers who so request in writing (i) upon the Company’s receipt, a copy of the order of the SEC declaring such
Registration Statement and any post effective amendment thereto effective, (ii) such reasonable number of copies of such Registration Statement and of each amendment and supplement thereto (in each case including any documents incorporated therein
by reference and all exhibits), (iii) such reasonable number of copies of the Prospectus included in such Registration Statement (including each preliminary Prospectus) and each amendment and supplement thereto, and such reasonable number of copies
of the final Prospectus as filed by the Company and the Guarantor pursuant to Rule 424(b) under the Securities Act, in conformity with the requirements of the Securities Act and each amendment and supplement thereto, and (iv) such other documents
(including any amendments required to be filed pursuant to clause (c) of this Section), as any such Person may reasonably request in writing. The Company and the Guarantor hereby consent to the use of the Prospectus by each of the selling Holders of
Registrable Notes or each such Participating Broker-Dealer, as the case may be, and the underwriters or agents, if any, and dealers, if any, in connection with the offering and sale of the Registrable Notes covered by, or the sale by Participating
Broker-Dealers of the Exchange Notes pursuant to, such Prospectus and any amendment or supplement thereto. 

  

	 	(e)	If (1) a Shelf Registration is filed pursuant to Section 3, or (2) a Prospectus contained in an Exchange Registration Statement filed pursuant to Section 2 is required to be
delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period relating thereto, the Company shall notify if the Company has been previously furnished a telephone or facsimile
number and address for notices, the selling Holders of Registrable Notes, or each such Participating Broker-Dealer, as the case may be, the managing underwriters, if any, and one designated counsel as promptly (as 

  

 Registration Rights Agreement 

 possible, and, if requested by such Person, confirm in writing (i) when a Prospectus or any Prospectus
supplement or post-effective amendment has been filed, and, with respect to a Registration Statement or any post-effective amendment, when the same has become effective (including in such notice a written statement that any Holder may, upon request,
obtain, without charge, one conformed copy of such Registration Statement or post-effective amendment including financial statements and schedules, documents incorporated or deemed to be incorporated by reference and exhibits), (ii) of the issuance
by the SEC of any stop order suspending the effectiveness of a Registration Statement or of any order preventing or suspending the use of any Prospectus or the initiation of any proceedings for that purpose, (iii) if at any time when a Prospectus is
required by the Securities Act to be delivered in connection with sales of the Registrable Notes the representations and warranties of the Company and the Guarantor contained in any agreement (including any underwriting agreement) contemplated by
Section 5(n) hereof cease to be true and correct, (iv) of the receipt by the Company or the Guarantor of any notification with respect to the suspension of the qualification or exemption from qualification of a Registration Statement or any of the
Registrable Notes or the Exchange Notes to be sold by any Participating Broker-Dealer for offer or sale in any jurisdiction, or the initiation or threatening of any proceeding for such purpose, (v) of the happening of any event, the existence of any
condition of any information becoming known that makes any statement made in such Registration Statement or related Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that
requires the making of any changes in, or amendments or supplements to, such Registration Statement, Prospectus or documents so that, in the case of the Registration Statement and the Prospectus, it will not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, (vi) of any reasonable determination by the Company
or the Guarantor that a post-effective amendment to a Registration Statement would be appropriate and (vii) of any request by the SEC for amendments to the Registration Statement or supplements to the Prospectus or for additional information
relating thereto. 
  

	 	(f)	Use its best efforts to prevent the issuance of any order suspending the effectiveness of a Registration Statement or of any order preventing or suspending the use of a Prospectus
or suspending the qualification (or exemption from qualification) of any of the Registrable Notes or the Exchange Notes to be sold by any Participating Broker-Dealer, for sale in any jurisdiction, and, if any such order is issued, to use its best
efforts to obtain the withdrawal of any such order at the earliest possible date. 

  

 Registration Rights Agreement 

	 	(g)	If (A) a Shelf Registration is filed pursuant to Section 3, (B) a Prospectus contained in an Exchange Registration Statement filed pursuant to Section 2 is required to be delivered
under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period or (C) reasonably requested in writing by the managing underwriters, if any, or the Holders of a majority in aggregate
principal amount of the Registrable Notes being sold in connection with an underwritten offering, (i) promptly incorporate in a Prospectus supplement or post-effective amendment such information or revisions to information therein relating to such
underwriters or selling Holders as the managing underwriters, if any, or such Holders or any of their respective counsel reasonably request in writing to be included or made therein and (ii) make all required filings of such Prospectus supplement or
such post-effective amendment as soon as practicable after the Company has received notification of the matters to be incorporated in such Prospectus supplements or post-effective amendment. 

  

	 	(h)	Prior to any public offering of Registrable Notes or any delivery of a Prospectus contained in the Exchange Registration Statement by any Participating Broker-Dealer who seeks to
sell Exchange Notes during the Applicable Period, use its best efforts to register or qualify, and to cooperate with the selling Holders of Registrable Notes or each such Participating Broker-Dealer, as the case may be, the underwriters, if any, and
their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Notes or Exchange Notes, as the case may be, for offer and sale under the securities or Blue Sky
laws of such jurisdictions within the United States as any selling Holder, Participating Broker-Dealer or any managing underwriter or underwriters, if any, reasonably request in writing; provided that neither the Company nor the Guarantor
shall be required to (A) qualify generally to do business in any jurisdiction where it is not then so qualified, (B) take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject or (C)
subject itself to taxation in any such jurisdiction where it is not then so subject. 

  

	 	(i)	If (A) a Shelf Registration is filed pursuant to Section 3 or (B) a Prospectus contained in an Exchange Registration Statement filed pursuant to Section 2 is requested to be
delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, cooperate with the selling Holders of Registrable Notes and the managing underwriter or underwriters, if any, to
facilitate the timely preparation and delivery of certificates representing Registrable Notes to be sold, which certificates shall not bear any restrictive legends and shall be in a form eligible for deposit with The Depository Trust Company, and
enable such Registrable Notes to be in 

  

 Registration Rights Agreement 

 such denominations and registered in such names as the managing underwriter or underwriters, if any, or
Holders may reasonably request. 
  

	 	(j)	Use its best efforts to cause the Registrable Notes covered by any Registration Statement to be registered with or approved by such governmental agencies or authorities as may be
necessary to enable the seller or sellers thereof or the underwriter, if any, to consummate the disposition of such Registrable Notes, except as may be required solely as a consequence of the nature of such selling Holder’s business, in which
case the Company shall (and shall cause the Guarantor to) cooperate in all reasonable respects with the filing of such Registration Statement and the granting of such approvals; provided that neither the Company nor the Guarantor shall be
required to (A) qualify generally to do business in any jurisdiction where it is not then so qualified, (B) take any action that would subject it to general service of process in any jurisdiction where it is not then so subject or (C) subject itself
to taxation in any such jurisdiction where it is not then so subject. 

  

	 	(k)	If (1) a Shelf Registration is filed pursuant to Section 3, or (2) a Prospectus contained in an Exchange Registration Statement filed pursuant to Section 2 is required to be
delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Notes during the Applicable Period, upon the occurrence of any event contemplated by paragraph 5(e)(v) or 5(e)(vi) hereof, as promptly as practicable,
prepare and file with the SEC, at the expense of the Company and the Guarantor, a supplement or post-effective amendment to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be
incorporated therein by reference, or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Notes being sold thereunder or to the purchasers of the Exchange Notes to whom such Prospectus will be
delivered by a Participating Broker-Dealer, such Prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, and, if SEC review is required, use its best efforts to cause such post-effective amendment to be declared effective as soon as possible. Notwithstanding anything to the contrary herein, if
the Company is required to file a post-effective amendment to the Shelf Registration or Subsequent Shelf Registration for the sole purpose of adding Holders to such Shelf Registration, the Company shall not be required to file such post-effective
amendment or new Shelf Registration more frequently than once a fiscal quarter without incurring any Additional Interest. 

  

	 	(l)	Use its best efforts to cause the Registrable Notes covered by a Registration Statement to be rated with such appropriate rating agencies, if 

  

 Registration Rights Agreement 

 so requested in writing by the Holders of a majority in aggregate principal amount of the Registrable
Notes covered by such Registration Statement or the managing underwriter or underwriters, if any. 
  

	 	(m)	Prior to the initial issuance of the Exchange Notes, (i) provide the Trustee with one or more certificates for the Registrable Notes in a form eligible for deposit with The
Depository Trust Company and (ii) provide a CUSIP number for the Exchange Notes. 

  

	 	(n)	If a Shelf Registration is filed pursuant to Section 3, enter into such agreements (including an underwriting agreement in form, scope and substance as is customary in underwritten
offerings of debt securities similar to the Notes, as may be appropriate in the circumstances) and take all such other actions in connection therewith (including those reasonably requested in writing by the managing underwriters, if any, or the
Holders of a majority in aggregate principal amount of the Registrable Notes being sold) in order to expedite or facilitate the registration or the disposition of such Registrable Notes, and in such connection, whether or not an underwriting
agreement is entered into and whether or not the registration is an Underwritten Registration, (i) make such representations and warranties to the Holders and the underwriters, if any, with respect to the business of the Company and its subsidiaries
as then conducted, and the Registration Statement, Prospectus and documents, if any, incorporated or deemed to be incorporated by reference therein, in each case, in form, substance and scope as are customarily made by issuers to underwriters in
underwritten offerings of debt securities similar to the Notes, as may be appropriate in the circumstances, and confirm the same if and when reasonably required; (ii) obtain an opinion of counsel to the Company and the Guarantor and updates thereof
(which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the managing underwriters, if any, and the Holders of a majority in aggregate principal amount of the Registrable Notes being sold), addressed to each
selling Holder and each of the underwriters, if any, covering the matters customarily covered in opinions of counsel to the Company and the Guarantor requested in underwritten offerings of debt securities similar to the Notes, as may be appropriate
in the circumstances; (iii) if requested in writing, obtain “cold comfort” letters and updates thereof (which letters and updates (in form, scope and substance) shall be reasonably satisfactory to the managing underwriters) from the
independent certified public accountants of the Company and the Guarantor (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial
statements and financial data are, or are required to be, included in the Registration Statement), addressed to each of the underwriters, such letters to be in customary form and covering matters of the type customarily covered in “cold
comfort” letters in connection with underwritten 

  

 Registration Rights Agreement 

 offerings of debt securities similar to the Notes, as may be appropriate in the circumstances, and such
other matters as reasonably requested in writing by the underwriters; and (iv) deliver such documents and certificates as may be reasonably requested in writing by the Holders of a majority in aggregate principal amount of the Registrable Notes
being sold and the managing underwriters, if any, to evidence the continued validity of the representations and warranties of the Company and its subsidiaries made pursuant to clause (i) above and to evidence compliance with any conditions contained
in the underwriting agreement or other similar agreement entered into by the Company or the Guarantor. 
  

	 	(o)	If a Shelf Registration is filed pursuant to Section 3, make available for inspection by one designated representative of the selling Holders of such Registrable Notes being sold,
any underwriter participating in any such disposition of Registrable Notes, if any, and one designated attorney retained by any such selling Holders, or underwriter (collectively, the “Inspectors”), at the offices where normally
kept, during reasonable business hours, all financial and other records and pertinent corporate documents of the Company and its subsidiaries (collectively, the “Records”) as shall be reasonably necessary to enable them to exercise
any applicable due diligence responsibilities, and cause the officers, directors and employees of the Company and its subsidiaries to supply all information reasonably requested in writing by any such Inspector in connection with such Registration
Statement. Each Inspector shall agree in writing that it will keep the Records confidential and not disclose any of the Records unless (i) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in such
Registration Statement, (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court of competent jurisdiction, (iii) the information in such Records is public or has been made generally available to the public
other than as a result of a disclosure or failure to safeguard by such Inspector or (iv) disclosure of such information is, in the reasonable written opinion of counsel for any Inspector, necessary or advisable in connection with any action, claim,
suit or proceeding, directly or indirectly, involving or potentially involving such Inspector and arising out of, based upon, related to, or involving this Agreement, or any transaction contemplated hereby or arising hereunder. Each selling Holder
of such Registrable Notes will be required to agree that information obtained by it as a result of such inspections shall be deemed confidential and shall not be used by it as the basis for any market transactions in the securities of the Company
unless and until such is made generally available to the public. Each Inspector, each selling Holder of such Registrable Notes will be required to further agree that it will, upon learning that disclosure of such Records is sought in a court of
competent jurisdiction, give notice to the Company and, to the extent practicable, use its best efforts to allow the Company, at its expense, to undertake appropriate action to prevent disclosure of the 

  

 Registration Rights Agreement 

 Records deemed confidential at its expense. 
  

	 	(p)	Comply with all applicable rules and regulations of the SEC and make generally available to the security holders of the Company with regard to any Applicable Registration Statement
earning statements satisfying the provisions of section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than 45 days after the end of any 12-month period (or 90 days after the
end of any 12-month period if such period is a fiscal year) (i) commencing at the end of any fiscal quarter in which Registrable Notes are sold to underwriters in a firm commitment or best efforts underwritten offering and (ii) if not sold to
underwriters in such an offering, commencing on the first day of the first fiscal quarter of the Company after the effective date of a Registration Statement, which statements shall cover said 12-month periods. 

  

	 	(q)	If the Exchange Offer or a Private Exchange is to be consummated, upon delivery of the Registrable Notes by the Holders to the Company and the Guarantor (or to such other Person as
directed by the Company and the Guarantor) in exchange for the Exchange Notes or the Private Exchange Notes, as the case may be, the Company and the Guarantor shall mark, or cause to be marked, on such Registrable Notes that the Exchange Notes or
the Private Exchange Notes, as the case may be, are being issued as substitute evidence of the indebtedness originally evidenced by the Registrable Notes; provided that in no event shall such Registrable Notes be marked as paid or otherwise
satisfied. 

  

	 	(r)	Cooperate with each seller of Registrable Notes covered by any Registration Statement and each underwriter, if any, participating in the disposition of such Registrable Notes and
their respective counsel in connection with any filings required to be made with the NASD. 

  

	 	(s)	Use its best efforts to take all other steps reasonably necessary to effect the registration of the Registrable Notes covered by a Registration Statement contemplated hereby.

  

	 	(t)	The Company will require each seller of Registrable Notes or Participating Broker-Dealer as to which any registration is being effected to furnish to the Company such information
regarding such seller or Participating Broker-Dealer and the distribution of such Registrable Notes as the Company may, from time to time, reasonably request in writing. The Company may exclude from such registration the Registrable Notes of any
seller who fails to furnish such information within a reasonable time (which time in no event shall exceed 45 days) after receiving such request. Each seller of Registrable Notes or Participating Broker-Dealer as to which any registration is being
effected agrees to furnish promptly to the Company all information required to be disclosed in order to make the information previously furnished by such seller not materially misleading. 

  

 Registration Rights Agreement 

	 	(u)	Each Holder of Registrable Notes and each Participating Broker-Dealer agrees by acquisition of such Registrable Notes or Exchange Notes to be sold by such Participating
Broker-Dealer, as the case may be, to discontinue disposition of such Registrable Notes covered by a Registration Statement and such Participating Broker-Dealer will forthwith discontinue disposition of such Exchange Notes pursuant to any Prospectus
and, in each case, forthwith discontinue dissemination of such Prospectus, upon receipt of any notice from the Company (x) of the happening of any event of the kind described in Section 5(e)(2)(ii), 5(e)(2)(iii), 5(e)(2)(iv), 5(e)(2)(v), or
5(e)(2)(vi) hereof or (y) that the Board of Directors of the Company has determined that the Company has a bone fide business purpose for doing so, then the Company may delay the filing or the effectiveness of the Exchange Offer Registration
Statement or the Shelf Registration (if not then filed or effective, as applicable) and shall not be required to maintain the effectiveness thereof or amend or supplement the Exchange Offer Registration Statement or the Shelf Registration, in all
cases, for a period (a “Delay Period”) expiring on the earlier of (i) in the case of the immediately preceding clause (x), such Holder’s or Participating Broker-Dealer’s receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 5(k), or until it is advised in writing (the “Advice”) by the Company and the Guarantor that the use of the applicable Prospectus may be resumed, and has received copies of any amendments or
supplements thereto or (ii) in the case of the immediately preceding clause (y), the date which is the earlier of (A) the date on which such business purpose ceases to interfere with the Company’s obligations to file and maintain the
effectiveness of any such Registration Statement pursuant to this Agreement or (B) 60 days after the Company notifies the Holders of such good faith determination, and, if so directed by the Company and the Guarantor, such Holder or Participating
Broker-Dealer, as the case may be, will deliver to the Company all copies, other than permanent file copies, then in such Holder’s or Participating Broker-Dealer’s possession, of the Prospectus covering such Registrable Notes current at
the time of the receipt of such notice. There shall not be more than 60 days of Delay Periods during any 12-month period. In the event the Company and the Guarantor shall give any such notice, the Applicable Period shall be extended by the number of
days during any Delay Period. 

  

	6.	Registration Expenses 

  

	 	(a)	All fees and expenses incident to the performance of or compliance with this Agreement by the Company and the Guarantor shall be borne by the Company and the Guarantor, whether or
not the Exchange Offer or a Shelf Registration is filed or becomes effective, including, without limitation, (i) all registration and filing fees, including, without limitation, (A) fees with respect to filings required to be made with the NASD in
connection with 

  

 Registration Rights Agreement 

 any underwritten offering and (B) fees and expenses of compliance with state securities or Blue Sky laws
as provided in Section 5(h) hereof (including, without limitation, reasonable fees and disbursements of counsel in connection with Blue Sky qualifications of the Registrable Notes or Exchange Notes and determination of the eligibility of the
Registrable Notes or Exchange Notes for investment under the laws of such jurisdictions (x) where the Holders are located, in the case of the Exchange Notes, or (y) as provided in Section 5(h), in the case of Registrable Notes or Exchange Notes to
be sold by a Participating Broker-Dealer during the Applicable Period)), (ii) printing expenses, including, without limitation, expenses of printing Prospectuses if the printing of Prospectuses is requested by the managing underwriter or
underwriters, if any, or by the Holders of a majority in aggregate principal amount of the Registrable Notes included in any Registration Statement or by any Participating Broker-Dealer during the Applicable Period, as the case may be, (iii)
messenger, telephone and delivery expenses incurred in connection with the performance of their obligations hereunder, (iv) fees and disbursements of counsel for the Company, the Guarantor and, subject to Section 6(b), the Holders, (v) fees and
disbursements of all independent certified public accountants referred to in Section 5 (including, without limitation, the expenses of any special audit and “cold comfort” letters required by or incident to such performance), (vi) rating
agency fees and the fees and expenses incurred in connection with the listing of the Securities to be registered on any securities exchange, (vii) Securities Act liability insurance, if the Company and the Guarantor desire such insurance, (viii)
fees and expenses of all other Persons retained by the Company and the Guarantor, (ix) fees and expenses of any “qualified independent underwriter” or other independent appraiser participating in an offering pursuant to Section 3 of
Schedule E to the By-laws of the NASD, but only where the need for such a “qualified independent underwriter” arises due to a relationship with the Company and the Guarantor, (x) internal expenses of the Company and the Guarantor
(including, without limitation, all salaries and expenses of officers and employees of the Company or the Guarantor performing legal or accounting duties), (xi) the expense of any annual audit, (xii) the fees and expenses of the Trustee and the
Exchange Agent and (xiii) the expenses relating to printing, word processing and distributing all Registration Statements, underwriting agreements, securities sales agreements, indentures and any other documents necessary in order to comply with
this Agreement. 
  

	 	(b)	The Company and the Guarantor shall reimburse the Holders for the reasonable fees and disbursements of not more than one counsel chosen by the Holders of a majority in aggregate
principal amount of the Registrable Notes to be included in any Registration Statement. The Company and the Guarantor shall pay all documentary, stamp, transfer or other transactional 

  

 Registration Rights Agreement 

 taxes attributable to the issuance or delivery of the Exchange Notes or Private Exchange Notes in
exchange for the Notes; provided that the Company shall not be required to pay taxes payable in respect of any transfer involved in the issuance or delivery of any Exchange Note or Private Exchange Note in a name other than that of the Holder
of the Note in respect of which such Exchange Note or Private Exchange Note is being issued. The Company and the Guarantor shall reimburse the Holders for fees and expenses (including reasonable fees and expenses of counsel to the Holders) relating
to any enforcement of any rights of the Holders under this Agreement. 
  

	7.	Indemnification 

  

	 	(a)	Indemnification by the Company and the Guarantor. The Company and the Guarantor jointly and severally agree to indemnify and hold harmless each Holder of Registrable Notes,
Exchange Notes or Private Exchange Notes and each Participating Broker-Dealer selling Exchange Notes during the Applicable Period, each Person, if any, who controls each such Holder (within the meaning of Section 15 of the Securities Act or Section
20(a) of the Exchange Act) and the officers, directors and partners of each such Holder, Participating Broker-Dealer and controlling person, to the fullest extent lawful, from and against any and all losses, claims, damages, liabilities, costs
(including, without limitation, reasonable costs of preparation and reasonable attorneys’ fees as provided in this Section 7) and expenses (including, without limitation, reasonable costs and expenses incurred in connection with investigating,
preparing, pursuing or defending against any of the foregoing) (collectively, “Losses”), as incurred, directly or indirectly caused by, related to, based upon, arising out of or in connection with any untrue or alleged untrue
statement of a material fact contained in any Registration Statement, Prospectus or form of prospectus, or in any amendment or supplement thereto, or in any preliminary prospectus, or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, but only to the extent, that such Losses are finally judicially determined by a court of competent
jurisdiction in a final, unappealable order, except insofar as such Losses are solely based upon information relating to such Holder or Participating Broker-Dealer and furnished in writing to the Company and the Guarantor (or reviewed and approved
in writing) by such Holder or Participating Broker-Dealer or their counsel expressly for use therein; provided, however, that the Company and the Guarantor will not be liable to any Indemnified Party (as defined below) under this
Section 7 to the extent Losses (i) arise from any offer or sale of Notes or Exchange Notes, as the case may be, covered by any Registration Statement during the Delay Period set forth in Section 5(u) with respect to a bone fide business purpose or
(ii) were solely caused 

  

 Registration Rights Agreement 

 by an untrue statement or omission or alleged untrue statement or omission that was contained or made in
any preliminary prospectus and corrected in the Prospectus or any amendment or supplement thereto if (A) the Prospectus does not contain any other untrue statement or omission or alleged untrue statement or omission of a material fact that was the
subject matter of the related proceeding, (B) any such Losses resulted from an action, claim or suit by any Person who purchased Registrable Notes or Exchange Notes which are the subject thereof from such Indemnified Party and (C) such Indemnified
Party failed to deliver or provide a copy of the Prospectus (as amended or supplemented) to such Person with or prior to the confirmation of the sale of such Registrable Notes or Exchange Notes sold to such Person if required by applicable law,
unless such failure to deliver or provide a copy of the Prospectus (as amended or supplemented) was a result of noncompliance by the Company with Section 5 of this Agreement. The Company and the Guarantor also agree to indemnify underwriters,
selling brokers, dealer managers and similar securities industry professionals participating in the distribution, their officers, directors, agents and employees and each Person who controls such Persons (within the meaning of Section 5 of the
Securities Act or Section 20(a) of the Exchange Act) to the same extent as provided above with respect to the indemnification of the Holders or the Participating Broker-Dealer. 
  

	 	(b)	Indemnification by Holder. In connection with any Registration Statement, Prospectus or form of prospectus, any amendment or supplement thereto, or any preliminary prospectus
in which a Holder is participating, such Holder shall furnish to the Company and the Guarantor in writing such information as the Company and the Guarantor reasonably request for use in connection with any Registration Statement, Prospectus or form
of prospectus, any amendment or supplement thereto, or any preliminary prospectus and shall indemnify and hold harmless the Company, the Guarantor, their respective directors and each Person, if any, who controls the Company and the Guarantor
(within the meaning of Section 15 of the Securities Act and Section 20(a) of the Exchange Act), and the directors, officers and partners of such controlling persons, to the fullest extent lawful, from and against all Losses arising out of or based
upon any untrue or alleged untrue statement of a material fact contained in any Registration Statement, Prospectus or form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or any omission or alleged omission
to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading to the extent, but only to the extent, that such losses are
finally judicially determined by a court of competent jurisdiction in a final, unappealable order to have resulted solely from an untrue statement or alleged untrue statement of a material fact or omission or alleged omission of a material

  

 Registration Rights Agreement 

 fact contained in or omitted from any information so furnished in writing by such Holder to the Company
and the Guarantor expressly for use therein. Notwithstanding the foregoing, in no event shall the liability of any selling Holder be greater in amount than such Holder’s Maximum Contribution Amount (as defined below). 
  

	 	(c)	Conduct of Indemnification Proceedings. If any proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified
Party”), such Indemnified Party shall promptly notify the party or parties from which such indemnity is sought (the “Indemnifying Party” or “Indemnifying Parties”, as applicable) in writing;
provided, that the failure to so notify the Indemnifying Parties shall not relieve the Indemnifying Parties from any obligation or liability except to the extent (but only to the extent) that it shall be finally determined by a court of
competent jurisdiction (which determination is not subject to appeal) that the Indemnifying Parties have been prejudiced materially by such failure. 

  
 The Indemnifying Party shall have the right, exercisable by giving written notice to an Indemnified Party, within 20
Business Days after receipt of written notice from such Indemnified Party of such proceeding, to assume, at its expense, the defense of any such proceeding, provided, that an Indemnified Party shall have the right to employ separate counsel
in any such proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or parties unless: (1) the Indemnifying Party has agreed to pay such fees and expenses; or
(2) the Indemnifying Party shall have failed promptly to assume the defense of such proceeding or shall have failed to employ counsel reasonably satisfactory to such Indemnified Party; or (3) the named parties to any such proceeding (including any
impleaded parties) include both such Indemnified Party and the Indemnifying Party or any of its affiliates or controlling persons, and such Indemnified Party shall have been advised by counsel that there may be one or more defenses available to such
Indemnified Party that are in addition to, or in conflict with, those defenses available to the Indemnifying Party or such affiliate or controlling person (in which case, if such Indemnified Party notifies the Indemnifying Parties in writing that it
elects to employ separate counsel at the expense of the Indemnifying Parties, the Indemnifying Parties shall not have the right to assume the defense and the reasonable fees and expenses of such counsel shall be at the expense of the Indemnifying
Party; it being understood, however, that, the Indemnifying Party shall not, in connection with any one such proceeding or separate but substantially similar or related proceedings in the same jurisdiction, arising out of the same general
allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (together with appropriate local counsel) at any time for such Indemnified Party). 
  
 No Indemnifying Party shall be liable for any settlement of any such
proceeding effected without its written consent, which shall not be unreasonably withheld, but if settled with its written consent, or if there be a final judgment for the plaintiff in any such proceeding, each Indemnifying Party jointly and
severally agrees, subject to the 
  

 Registration Rights Agreement 

 exceptions and limitations set forth above, to indemnify and hold harmless each Indemnified Party from and against any
and all Losses by reason of such settlement or judgment. The Indemnifying Party shall not consent to the entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or
plaintiff to each Indemnified Party of a release, in form and substance reasonably satisfactory to the Indemnified Party, from all liability in respect of such proceeding for which such Indemnified Party would be entitled to indemnification
hereunder (whether or not any Indemnified Party is a party thereto). 
  

	 	(d)	Contribution. If the indemnification provided for in this Section 7 is unavailable to an Indemnified Party or is insufficient to hold such Indemnified Party harmless for any
Losses in respect of which this Section 7 would otherwise apply by its terms (other than by reason of exceptions provided in this Section 7), then each applicable Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall have a joint
and several obligation to contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party, on the one hand, and such
Indemnified Party, on the other hand, in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party, on the one hand, and
Indemnified Party, on the other hand, shall be determined by reference to, among other things, whether any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied
by such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent any such statement or omission. The amount paid or payable by an Indemnified Party as a
result of any Losses shall be deemed to include any legal or other fees or expenses incurred by such party in connection with any proceeding, to the extent such party would have been indemnified for such fees or expenses if the indemnification
provided for in Section 7(a) or 7(b) was available to such party. 

  
 The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 7(d) were determined by pro rata allocation or by other method of allocation that does not take account of the
equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 7(d), a selling Holder shall not be required to contribute, in the aggregate, any amount in excess of such Holder’s
Maximum Contribution Amount. A selling Holder’s “Maximum Contribution Amount” shall equal the excess of (i) the aggregate proceeds received by such Holder pursuant to the sale of such Registrable Notes or Exchange Notes over
(ii) the aggregate amount of 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 Securities Act) shall be entitled to contribution from any Person who was not guilty of 
  

 Registration Rights Agreement 

 such fraudulent misrepresentation. The Holders’ obligations to contribute pursuant to this Section 7(d) are several
in proportion to the respective principal amount of the Registrable Securities held by each Holder hereunder and not joint. The Company’s and the Guarantor’s obligations to contribute pursuant to this Section 7(d) are joint and several.

  
 The indemnity and contribution agreements contained in this
Section 7 are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties. 
  

	8.	Rules 144 and 144A 

  
 The Company covenants that it shall (a) file the reports required to be filed by it (if so required) under the Securities Act and the Exchange Act in a
timely manner and, if at any time the Company is not required to file such reports, it will, upon the written request of any Holder of Registrable Notes, make publicly available other information necessary to permit sales pursuant to Rule 144 and
144A and (b) take such further action as any Holder may reasonably request in writing, all to the extent required from time to time to enable such Holder to sell Registrable Notes without registration under the Securities Act pursuant to the
exemptions provided by Rule 144 and Rule 144A. Upon the request of any Holder, the Company shall deliver to such Holder a written statement as to whether it has complied with such information and requirements. 
  

	9.	Underwritten Registrations of Registrable Notes 

  
 If any of the Registrable Notes covered by any Shelf Registration is to be sold in an underwritten offering, the investment banker or investment bankers
and manager or managers that will manage the offering will be selected by the Holders of a majority in aggregate principal amount of such Registrable Notes included in such offering; provided, however, that such investment banker or
investment bankers and manager or managers must be reasonably acceptable to the Company. 
  
 No Holder of Registrable Notes may participate in any underwritten registration hereunder unless such Holder (a) agrees to sell such Holder’s Registrable Notes on the basis provided in any underwriting
arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents required under the terms of such
underwriting arrangements. 
  

	10.	Miscellaneous 

  

	 	(a)	Remedies. In the event of a breach by either the Company or the Guarantor of any of their respective obligations under this Agreement, each Holder, in addition to being
entitled to exercise all rights provided herein, in the Indenture or, in the case of the Initial Purchaser, in the Purchase Agreement, or granted by law, including recovery of damages, will be entitled to specific performance of its rights under
this Agreement. 

  

 Registration Rights Agreement 

 The Company and the Guarantor agree that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by either the Company or the Guarantor of any of the provisions of this Agreement and hereby further agree that, in the event of any action for specific performance in respect of such breach, the Company shall (and
shall cause the Guarantor to) waive the defense that a remedy at law would be adequate. 
  

	 	(b)	No Inconsistent Agreements. The Company and the Guarantor have not entered, as of the date hereof, and the Company and the Guarantor shall not enter, after the date of this
Agreement, into any agreement with respect to any of its securities that is inconsistent with the rights granted to the Holders of Securities in this Agreement or otherwise conflicts with the provisions hereof. The Company and the Guarantor have not
entered and will not enter into any agreement with respect to any of its securities that will grant to any Person piggy-back rights with respect to a Registration Statement. 

  

	 	(c)	Adjustments Affecting Registrable Notes. The Company shall not, directly or indirectly, take any action with respect to the Registrable Notes as a class that would adversely
affect the ability of the Holders to include such Registrable Notes in a registration undertaken pursuant to this Agreement. 

  

	 	(d)	Amendments and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may
not be given, otherwise than with the prior written consent of the Holders of not less than a majority in aggregate principal amount of the then outstanding Registrable Notes in circumstances that would adversely affect any Holders of Registrable
Notes; provided, however, that Section 7 and this Section 10(d) may not be amended, modified or supplemented without the prior written consent of each Holder. Notwithstanding the foregoing, a waiver or consent to depart from the
provisions hereof with respect to a matter that relates exclusively to the rights of Holders of Registrable Notes whose securities are being tendered pursuant to the Exchange Offer or sold pursuant to a Notes Registration Statement and that does not
directly or indirectly affect, impair, limit or compromise the rights of other Holders of Registrable Notes may be given by Holders of at least a majority in aggregate principal amount of the Registrable Notes being tendered or being sold by such
Holders pursuant to such Notes Registration Statement. 

  

	 	(e)	Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand delivery, registered first-class mail, next-day air courier
or telecopier: 

  

	 	(i)	if to a Holder of Securities or to any Participating Broker-Dealer, 

  

 Registration Rights Agreement 

 at the most current address of such Holder or Participating Broker-Dealer, as the case may be, set forth
on the records of the registrar of the Notes, with a copy in like manner to the Initial Purchaser as follows: 
  

	
	 Jefferies & Company, Inc.

	 520 Madison Avenue

	 12th
Floor

	 New York, New York 10022

	
	 with a copy to:

	
	 Mayer, Brown, Rowe & Maw LLP

	 1675 Broadway

	 New York, New York 10019

	 Facsimile No.: (212) 262-1910

	 Attention: Ronald S. Brody, Esq.

  

	 	(ii)	if to the Initial Purchaser, at the address specified in Section 10(e)(1); 

  

	 	(iii)	if to the Company or the Guarantor as follows: 

  

	
	 Sheffield Steel Corporation

	 220 N. Jefferson Street

	 Sand Springs, OK 74063

	 Attention: Stephen R. Johnson

	
	 with a copy to:

	
	 Palmer & Dodge LLP

	 111 Huntington Avenue

	 Boston, MA 02199-7613

	 Attention: George Ticknor, Esq.

  
 All such notices and
communications shall be deemed to have been duly given: when delivered by hand, if personally delivered; five business days after being deposited in the United States mail, postage prepaid, if mailed; one business day after being timely delivered to
a next-day air courier guaranteeing overnight delivery; and when receipt is acknowledged by the addressee, if telecopied. 
  
 Copies of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee under the
Indenture at the address specified in such Indenture. 
  

	 	(f)	Successors and Assigns. This Agreement shall inure to the benefit of and 

  

 Registration Rights Agreement 

 be binding upon the successors and assigns of each of the parties hereto, including, without limitation
and without the need for an express assignment, subsequent Holders of Securities. 
  

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

  

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

  

	 	(i)	Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAW. EACH OF
THE COMPANY AND THE GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN
RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND IRREVOCABLY ACCEPTS FOR ITS AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS. EACH OF THE COMPANY AND THE
GUARANTOR IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TRIAL BY JURY AND ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH
COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH OF THE COMPANY AND THE GUARANTOR IRREVOCABLY CONSENTS, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER
APPLICABLE LAW, TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE COMPANY AND THE GUARANTOR AT THEIR SAID ADDRESS,
SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY HOLDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE COMPANY OR THE

  

 Registration Rights Agreement 

 GUARANTOR IN ANY OTHER JURISDICTION. 
  

	 	(j)	Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their best efforts to find and
employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have
executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

  

	 	(k)	Securities Held by the Company or Its Affiliates. Whenever the consent or approval of Holders of a specified percentage of Securities is required hereunder, Securities held
by the Company or its affiliates (as such term is defined in Rule 405 under the Securities Act) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 

  

	 	(l)	Third Party Beneficiaries. Holders and Participating Broker-Dealers are intended third party beneficiaries of this Agreement and this Agreement may be enforced by such
Persons. 

  

	 	(m)	Entire Agreement. This Agreement, together with the Purchase Agreement, the Indenture and the Collateral Agreements, is intended by the parties as a final and exclusive
statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein and any and all prior oral or written agreements, representations, or warranties, contracts, understanding,
correspondence, conversations and memoranda between the Initial Purchaser on the one hand and the Company and the Guarantor on the other, or between or among any agents, representatives, parents, subsidiaries, affiliates, predecessors in interest or
successors in interest with respect to the subject matter hereof and thereof are merged herein and replaced hereby. 

  

 Registration Rights Agreement 

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

  

			
	SHEFFIELD STEEL CORPORATION
		
	By:	 	 /s/ James P. Nolan

	Name:	 	James P. Nolan
	Title:	 	President and Chief Executive Officer

	

  

			
	SAND SPRINGS RAILWAY COMPANY,
	as Guarantor
		
	By:	 	 /s/ James P. Nolan

	Name:	 	James P. Nolan
	Title:	 	President and Chief Executive Officer

  

 Registration Rights Agreement 

			
	ACCEPTED AND AGREED TO:
	
	JEFFERIES & COMPANY, INC.
		
	By:	 	 /s/ Peter J. Scott

	Name:	 	Peter J. Scott
	Title:	 	Managing Director

  

 Registration Rights AgreementSecurity Agreement dated August 12, 2004

 Exhibit 4.4 
  

SECURITY AGREEMENT 
  
 This Security Agreement, dated as of August 12, 2004 (this “Agreement”), is among Sheffield Steel Corporation, a Delaware corporation
(the “Company”), Sand Springs Railway Company, an Oklahoma corporation (the “Initial Guarantor”), the other Domestic Restricted Subsidiaries (such capitalized term and other capitalized terms used but not defined
herein having the terms ascribed thereto in the Indenture defined below) of the Company hereafter parties hereto (such other Subsidiaries, together with the Initial Guarantor, the “Guarantors” and, together with the Company, the
“Debtors”) and U.S. Bank National Association (“U.S. Bank”), as collateral agent (in such capacity, the “Collateral Agent”) for the Secured Parties. 
  
 PRELIMINARY STATEMENTS: 
  
 1. The Company and the other Debtors and U.S. Bank, as Collateral Agent and
as trustee (in such capacity, the “Trustee”), have entered into an Indenture, dated as of even date herewith (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), pursuant to
which (i) the Company has issued its 113/8% Senior Secured Note due 2011 in an aggregate principal amount of $80,000,000 (and, together with any additional notes that may be issued by the Company from
time to time thereunder or exchanged therefor or for such additional notes, the “Notes”) and (ii) the other Debtors have guaranteed the payment by the Company of its Obligations under the Notes and the other Indenture Documents.

  
 2. The Company, the Initial Guarantor, the financial
institutions from time to time party thereto, as lenders (collectively, the “Lenders” and each a “Lender”), and The CIT Group/Business Credit, Inc., a New York corporation, as agent (in such capacity, the
“Administrative Agent”) for the Lenders are the parties to the Amended and Restated Financing Agreement, dated as of even date herewith (as amended, restated, supplemented or otherwise modified from time to time, the
“Financing Agreement”), under which the Lenders have agreed, on certain terms and subject to certain conditions, to make loans and other extensions of credit to the Company and the Initial Guarantor. 
  
 3. The Collateral Agent, Administrative Agent, the Company and the Initial
Guarantor have entered into that certain Intercreditor Collateral Subordination Agreement, dated as of even date herewith (as amended, restated, supplemented, replaced or otherwise modified from time to time, the “Intercreditor
Agreement”), which agreement, among other things, sets forth, as between the Collateral Agent and the Administrative Agent, the relative priority of their respective Liens in the Collateral and their rights with respect thereto. 

 
 4. To induce the Initial Purchaser to purchase the Notes, each Holder to
hold the Notes to be held by it and U.S. Bank to act in its capacities as Trustee and Collateral Agent, each Debtor has agreed to grant to the Collateral Agent, for the benefit of the Secured Parties, a security interest in certain of such
Debtor’s assets, as more particularly provided for in this Agreement. 
  

 1 

 AGREEMENT: 
  
 In consideration of the premises and the mutual agreements contained in this Agreement, each Debtor and the Collateral Agent agree as follows: 

 
 SECTION 1: INTERPRETATION 
  
 1.1 Defined Terms. As used in this Agreement, the following terms have
the meanings specified below (such meanings to apply equally to both the singular and plural forms of the terms defined; whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms): 

 
 “Account” has the meaning set forth in the UCC and
includes all accounts created by, or arising from, each Debtor’s sales, leases, rentals of goods or renditions of services to its customers, including those accounts arising under a trade name or style of such Debtor, or through such
Debtor’s divisions; (b) instruments, documents, chattel paper (including electronic chattel paper) (all as defined in the UCC); (c) unpaid seller’s or lessor’s rights (including rescission, replevin, reclamation, repossession and
stoppage in transit) relating to the foregoing or arising therefrom; (d) rights to any goods represented by any of the foregoing, including rights to returned, reclaimed or repossessed goods; (e) reserves and credit balances arising in connection
with or pursuant hereto; (f) guarantees, supporting obligations, payment intangibles and letter of credit rights (all as defined in the UCC); (g) insurance policies or rights relating to any of the foregoing; (h) general intangibles pertaining to
any and all of the foregoing (including all rights to payment, including those arising in connection with bank and non-bank credit cards), and including books and records and any electronic media and software thereto; and (i) notes, deposits or
property of account debtors securing the obligations of any such account debtors of such Debtor. 
  
 “Administrative Agent” has the meaning set forth in the Preliminary Statements. 
  
 “Agreement” has the meaning set forth in the
Preamble. 
  
 “Chattel Paper” has the
meaning set forth in the UCC and includes any writing or group of writings which evidences both a monetary obligation and a security interest in or a lease of specific goods. 
  
 “Collateral” shall mean all present and future Accounts, Inventory, General Intangibles, Copyrights,
Patents, Trademarks, Documents, Chattel Paper, Goods, Equipment, Fixtures, rights under all present and future leases of personal and real property, locomotives, railcars and rolling stock (including those listed on Schedule 3.12),
Instruments, letter-of credit rights (as defined in the UCC), the commercial tort claims (as defined in the UCC) described on Schedule 2.5 hereto, Investment Property, the Other Collateral, all other personal property and all products and
proceeds of any and all of the foregoing of each Debtor. 
  
 “Collateral Agent” has the meaning set forth in the Preamble. 
  
 “Company” has the meaning set forth in the Preamble. 
  

 2 

 “Control” has the meaning set forth in Article 8 or 9 of the UCC. 
  
 “Control Agreement” means, with respect to the applicable
Debtor, a control agreement, in form and substance reasonably satisfactory to the Administrative Agent (if the Intercreditor Agreement has not been terminated at the time of the execution of such control agreement) and the Collateral Agent, executed
and delivered by (a) such Debtor, (b) (i) the Administrative Agent for the benefit of (A) the Lenders and (B) the Collateral Agent for the benefit of the Secured Parties or (ii) if the Intercreditor Agreement has been terminated, the Collateral
Agent, and (c) the applicable (i) securities intermediary (with respect to a Securities Account of such Debtor) or (ii) bank (with respect to a Deposit Account of such Debtor). 
  
 “Copyrights” shall mean all of each Debtor’s present and hereafter acquired copyrights, copyright
registrations and applications (including those listed on Schedule 3.8(A)), recordings, applications, designs, styles, licenses, marks, prints and labels bearing any of the foregoing, goodwill, any and all general intangibles, intellectual
property and rights pertaining thereto, and all cash and non-cash proceeds thereof. 
  
 “Debtor” has the meaning set forth in the Preamble. 
  
 “Defeasance” means, with respect to any obligation, the defeasance thereof pursuant to a Legal Defeasance or Covenant Defeasance as
described under Section 8.01 of the Indenture. 
  
 “Deposit Account” means any deposit account (as that term is defined in the UCC). 
  
 “Disposition” shall have the meaning ascribed to the term Asset Sale in the Indenture, and the words “Dispose” and
“Disposal” shall be interpreted similarly. 
  
 “Documents” has the meaning set forth in the UCC and includes all documents of title and Inventory evidenced thereby, including all bills of lading, dock warrants, dock receipts, warehouse receipts and orders for the
delivery of Inventory, and also any other document which in the regular course of business or financing is treated as adequately evidencing that the person in possession of it is entitled to receive, hold and dispose of the document and the
Inventory it covers. 
  
 “Equipment” shall have
the meaning set forth in the UCC and includes all machinery, equipment, furnishings and fixtures, including movable trade fixtures now or hereafter owned by each Debtor and any and all additions, substitutions and replacements of any of the
foregoing, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto. 
  
 “Excluded Deposit Accounts” means, collectively, (1) the escrow account established with Bank of Oklahoma (account number 700172680)
pursuant to the order of the U.S. Bankruptcy Court for the District of Oklahoma in the bankruptcy proceedings of the Company, Consolidated Case No. 01-05508-R for the benefit of certain unsecured creditors, (2) escrow accounts established pursuant
to purchase agreements and/or sales agreements, in each case, relating to transactions permitted under the Indenture and (3) accounts used solely for the purpose of paying the payroll of any Debtor. 
  

 3 

 “Financing Agreement” has the meaning set forth in the Preliminary Statements.

  
 “Fixtures” has the meaning set forth in the
UCC. 
  
 “General Intangibles” has the meaning
set forth in the UCC and includes all of each Debtor’s present and hereafter acquired intangible personal property (other than Accounts) including all present and future contract rights, rights to receive payments of money, choses in action,
causes of action, judgments, commercial tort claims (as defined in the UCC), tax refunds and tax refund claims, Copyrights, Patents, Trademarks, tradenames, licenses, permits, franchises, computer programs, software, customer and supplier contracts
and lists, interests in general or limited partnerships, joint ventures or limited liability companies not constituting Securities (including Pledged Securities issued by any of the foregoing that are Subsidiaries of such Debtor), reversionary
interests in pension and profit sharing plans and reversionary, beneficial and residual interests in trusts, leasehold interests in real or personal property, rights to receive rentals of real or personal property and guarantee and indemnity claims,
together with respect to the foregoing, all (i) applications (ii) right, title and interest in and to any and all extensions and renewals (iii) goodwill (iv) any other forms of similar intellectual property; and (v) all monies and claims for monies
now or hereafter due and payable in connection with any of the foregoing or otherwise, and all cash and non-cash proceeds thereof, including the proceeds or royalties of any licensing agreements between such Debtor and any licensee of any of such
Debtor’s General Intangibles. 
  
 “Goods”
has the meaning set forth in the UCC. 
  
 “Guarantors” has the meaning set forth in the Preamble. 
  
 “Indenture” has the meaning set forth in the Preliminary Statements. 
  
 “Initial Guarantor” has the meaning set forth in the Preamble. 
  
 “Instruments” has the meaning set forth in the UCC and includes all negotiable instruments, certificated
and uncertificated Securities and any replacements therefor, and Stock Rights related thereto, and other writings which evidence a right to the payment of money and which are not themselves security agreements or leases and are of a type which in
the ordinary course of business are transferred by delivery with any necessary endorsement or assignment, including all checks, drafts, notes, bonds, debentures, government securities, certificates of deposit, letters of credit, preferred and common
stocks, options and warrants. 
  
 “Intercreditor
Agreement” has the meaning set forth in the Preliminary Statements. 
  
 “Inventory” has the meaning set forth in the UCC and includes any and all goods, including goods in transit, wheresoever located, whether now owned or hereafter acquired by any Debtor and all
additions, substitutions and replacements thereof, which are held for sale or lease, furnished under any contract of service, or held as raw materials, work in process or supplies, and all materials used or consumed in such Debtor’s business,
and includes such property the sale or other disposition of which has given rise to Accounts and which has been returned to or repossessed or stopped in transit by such Debtor. 
  

 4 

 “Investment Property” has the meaning set forth in the UCC and includes (i) a Security,
whether certificated or uncertificated, a security entitlement, a Securities Account, a commodity contract, or a commodity account and (ii) all Pledged Securities that are Securities. 
  
 “Leases” has the meaning set forth in the UCC. 
  
 “Lender” and “Lenders” have the meaning set
forth in the Preliminary Statements. 
  
 “Notes” has the meaning set forth in the Preliminary Statements. 
  
 “Obligations” shall mean: (a) all advances evidenced by the Notes and interest thereon (including, without limitation, interest accruing
after the filing of a petition initiating any insolvency or bankruptcy proceeding, whether or not allowed as a claim in such proceeding); (b) any and all other indebtedness, obligations and liabilities which may be owed by any Debtor to the
Collateral Agent or any other Secured Party and arising out of, or incurred in connection with, the Indenture or any of the other Indenture Documents (including all Out-of-Pocket Expenses), whether (i) now in existence or incurred by such Debtor
from time to time hereafter, (ii) secured by pledge, lien upon or security interest in any of such Debtor’s assets or property or the assets or property of any other person, firm, entity, or corporation, (iii) such indebtedness is absolute or
contingent, joint or several, matured or unmatured, direct or indirect, or (iv) such Debtor is liable to the Collateral Agent or any other Secured Party for such indebtedness as principal, surety, endorser, guarantor or otherwise; (c) all other
indebtedness, obligations and liabilities owed by such Debtor to the Collateral Agent and/or the other Secured Parties under any other agreement or arrangement now or hereafter entered into between such Debtor, on the one hand, and the Collateral
Agent and/or any other Secured Party, on the other hand, relating to the transactions contemplated by the Indenture; (d) indebtedness, obligations and liabilities incurred by, or imposed on, the Collateral Agent or any other Secured Party as a
result of environmental claims relating to such Debtor’s operations, premises or waste disposal practices or disposal sites; and (e) such Debtor’s liabilities to the Collateral Agent or any other Secured Party as maker or endorser on any
promissory note or other instrument for the payment of money. 
  
 “Other Collateral” shall mean: (a) all present and hereafter established lockbox, blocked account and any other deposit accounts maintained with any bank or financial institutions into which the proceeds of Collateral are
or may be deposited; (b) all cash and other monies and property in the possession or Control of the Collateral Agent; (c) all books, records, ledger cards, disks and related data processing software at any time evidencing or containing information
relating to any of the Collateral described herein or otherwise necessary or helpful in the collection thereof or realization thereon; and (d) all cash and non-cash proceeds of the foregoing. 
  
 “Out-of-Pocket Expenses” shall mean all of the Collateral
Agent’s present and future expenses incurred in connection with this Agreement and the other Indenture Documents, including (a) the cost of lien searches (including tax lien and judgment lien searches), pending litigation searches and similar
items, (b) fees and taxes imposed in connection with the filing of any financing statements or other personal property security documents; (c) all costs and expenses incurred by the Collateral Agent in opening and maintaining any collateral account
and any related lockboxes, depositing checks, and receiving and transferring funds (including 
  

 5 

 charges imposed on the Collateral Agent for “insufficient funds” and the return of deposited checks); (d) title
insurance premiums, real estate survey costs, note taxes, intangible taxes and mortgage or recording taxes and fees; (e) all costs, fees and expenses incurred by the Collateral Agent in connection with any action taken under Section 4.1(A)
hereof, including travel, meal and lodging expenses of the Collateral Agent’s personnel; (f) all expenses, costs and fees incurred by the Collateral Agent in connection with any action taken under Section 5.1 hereof; and (g) without
duplication, all costs and expenses incurred by the Collateral Agent in connection with the collection, liquidation, enforcement, protection and defense of the Obligations, the Collateral and the Collateral Agent’s rights under this Agreement,
the Indenture and the other Collateral Agreements, and all disbursements and fees of in-house and outside counsel to the Collateral Agent, including such fees and disbursements incurred as a result of a workout, restructuring, reorganization,
liquidation, insolvency proceeding and in any appeals arising therefrom whether incurred before, during or after the termination of this Agreement, the Indenture or any other Indenture Document or the commencement of any case with respect to any
Debtor under the Bankruptcy Code or any similar statute. 
  
 “Patents” shall mean all of each Debtor’s present and hereafter acquired patents, patent applications and registrations (including those listed on Schedule 3.8(B)), any reissues or renewals thereof, licenses,
any inventions and improvements claimed thereunder, and all general intangible, intellectual property and patent rights with respect thereto of such Debtor, and all income, royalties, cash and non-cash proceeds thereof. 
  
 “Permitted Dispositions” means Dispositions consummated in
accordance with the terms of Section 4.10 of the Indenture. 
  
 “Pledged Securities” means all of the Capital Stock of each Subsidiary of each Debtor including the Capital Stock specified on Schedule 3.6 hereto. Notwithstanding the foregoing, the term Collateral shall in no event
include more than sixty-five percent (65%) of the issued and outstanding Voting Stock of any first-tier Foreign Subsidiary of such Debtor. 
  
 “Receivables” means the Accounts, Chattel Paper, Documents, Investment Property or Instruments, and any other rights or claims to receive
money which are General Intangibles or which are otherwise included as Collateral. 
  
 “Required Insurance” has the meaning set forth in Section 4.9. 
  
 “Securities Account” means a securities account (as that term is defined in the UCC). 
  
 “Security” has the meaning set forth in the UCC. 

 
 “STB” shall mean the Surface Transportation Board of the
United States Department of Transportation, or any successor thereto. 
  
 “Stock Rights” means any Capital Stock (including any Securities), dividends or other distributions and any other right or property which any Debtor shall receive or shall become entitled to receive for any reason
whatsoever with respect to, in substitution for or in exchange for any Capital Stock (including any Securities) or other ownership interests in a corporation, partnership, joint venture or limited liability company constituting Collateral and any
Capital 
  

 6 

 Stock (including any Securities), any right to receive any Capital Stock (including any Securities) and any right to
receive earnings, in which such Debtor now has or hereafter acquires any right, issued by an issuer of such Capital Stock (including such Securities). 
  
 “Trademarks” shall mean all of each Debtor’s present and hereafter acquired trademarks, trademark registrations and applications
(including those listed on Schedule 3.8(C)), recordings, tradenames, trade styles, service marks, prints and labels (on which any of the foregoing may appear), licenses, reissues, renewals, and any other intellectual property and trademark
rights pertaining to any of the foregoing, together with the goodwill associated therewith, and all cash and non-cash proceeds thereof. 
  
 “Trustee” has the meaning set forth in the Preliminary Statements. 
  
 “U.S. Bank” has the meaning set forth in the Preamble. 
  
 “UCC” means the Uniform Commercial Code as in effect from
time to time in the State of New York; provided, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, priority, or remedies with respect to the Collateral Agent’s Lien on any
Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction
solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies. 
  
 1.2 UCC Terms. Except as otherwise indicated, all terms not specifically defined in this Agreement that are defined, or used, in Article 8 or 9 of
the UCC have the respective meanings assigned to such terms in Article 8 or 9, as the case may be, of the UCC. 
  
 1.3 Headings and References. Section and other headings are for reference only, and do not affect the interpretation or meaning of any provision of
this Agreement. Any Section or clause references are to this Agreement, unless otherwise specified. References to a schedule are, unless otherwise specified, to a Schedule attached to this Agreement. References in this Agreement and the other
Indenture Documents or any other agreement include this Agreement and the other Indenture Documents and other agreements as the same may be amended, restated, supplemented or otherwise modified from time to time under their respective terms. A
reference to any law, statute or regulation mean that law, statute or regulation as it may be amended, supplemented or otherwise modified from time to time, and any successor law, statute or regulation. Subject to Section 7.13, a reference to
a Person includes the successors and assigns of such Person, but such reference shall not increase, decrease or otherwise modify in any way the provisions in this Agreement or any other Indenture Document governing the assignment of rights and
obligations under or the binding effect of any provision of this Agreement or any other Indenture Document. 
  
 1.4 Construction. Each covenant contained in this Agreement shall be construed (absent express provision to the contrary) as being independent of
each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision in this Agreement or any other Indenture
Document refers to action to be taken by any Person, or 
  

 7 

 which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or
indirectly by such Person. The terms “including” and “includes” are not limiting and mean “including without limitation” and “includes without limitation”, respectively. 
  
 SECTION 2: GRANT OF SECURITY INTEREST 
  
 2.1 Grant of Security Interest. Each Debtor hereby pledges, assigns
and grants to the Collateral Agent, on behalf of and for the ratable benefit of the Secured Parties, a security interest in all of such Debtor’s right, title and interest in and to the Collateral, wherever located, whether now or hereafter
existing, owned, licensed, leased (to the extent of such Debtor’s leasehold interest in such property), consigned (to the extent of such Debtor’s ownership interest in such property), arising or acquired, to secure the prompt and complete
payment and performance of such Debtor’s Obligations. 
  
 2.2
Continuation of Security Interest. The rights and security interests granted hereunder to the Collateral Agent, for the benefit of the Secured Parties, shall continue in full force and effect until the final payment in full to the Collateral
Agent and the Secured Parties of all Obligations or the Defeasance thereof. Upon the final payment in full of all Obligations or the Defeasance thereof, the security interests granted herein shall automatically terminate and all rights to the
Collateral shall revert to the applicable Debtor. Upon any termination of any security interest referred to in this Section 2.2, the Collateral Agent will, at Debtors’ expense, execute and deliver to each Debtor such documents without
recourse, representation or warranty as such Debtor shall reasonably request to evidence such termination. 
  
 2.3 Determination of Rights and Remedies. To the extent that the Obligations are now or hereafter secured by any assets or property other than the
Collateral or by, the guarantee, endorsement, assets or property of any other person, the Collateral Agent and the other Secured Parties shall have the right in their sole discretion to determine which rights, security, liens, security interests or
remedies the Collateral Agent and the other Secured Parties shall at any time pursue, foreclose upon, relinquish, subordinate, modify or take any other action with respect to, without in any way modifying or affecting any of them or any of the
Collateral Agent’s or the other Secured Parties’ rights hereunder. 
  
 2.4 Maintenance of Rights in General Intangibles; Perfection of Security Interests in Additional Rights. Debtors agree to maintain their rights in, and the value of, all General Intangibles necessary for the
Debtors to operate its business, and shall make when due all payments required with respect to any licensed rights. The Debtors shall upon the acquisition of rights with respect to any additional Patents, Trademarks, Copyrights or other assets of
the type constituting Collateral cause the Collateral Agent, to the extent permitted under the documentation granting such rights or applicable law, to have a perfected security interest therein (and Control, if applicable), for the benefit of the
Secured Parties, in such rights in a timely manner. 
  
 2.5
Commercial Tort Claims. Each Debtor represents and warrants that it holds no interest in any commercial tort claim (as defined in the UCC) for a claim of at least $50,000, other than the claims described on Schedule 2.5 attached
hereto. If any Debtor shall at any time 
  

 8 

 hold or acquire a commercial tort claim for a claim of at least (a) at any time when an Event of Default is not
outstanding, $50,000 or (b) at any time when an Event of Default is outstanding, $10,000, such Debtor shall immediately notify the Collateral Agent in a writing signed by such Debtor of the brief details thereof and grant to the Collateral Agent in
such writing a security interest therein and in the proceeds thereof for the benefit of the Secured Parties, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to the Collateral Agent and
perfect such security interest (including by filing a financing statement or an amendment to a previously existing and effective financing statement naming such Debtor as debtor and the Collateral Agent as secured party). 
  
 2.6 Notification of Beneficiary Status Under Letter of Credit. If any
Debtor is or becomes a beneficiary under a letter of credit having a stated amount of at least (a) at any time when an Event of Default is not outstanding, $25,000 or (b) at any time when an Event of Default is outstanding, $10,000, now or hereafter
issued for the benefit of such Debtor, such Debtor shall promptly notify the Collateral Agent and shall, pursuant to an agreement in form and substance satisfactory to the Collateral Agent, either (a) cause the issuer of such letter of credit to
consent to the assignment of the proceeds of such letter of credit to the Collateral Agent or (b) cause the issuer of such letter of credit to name the Collateral Agent as the transferee beneficiary of such letter of credit. 
  
 SECTION 3: REPRESENTATIONS AND WARRANTIES 
  
 Each Debtor represents and warrants to the Collateral Agent and the Secured
Parties as follows: 
  
 3.1 Title, Authorization, Validity and
Enforceability. 
  
 (A) Such Debtor has good and valid rights
in and title to the Collateral with respect to which it has purported to grant a security interest hereunder, free and clear of all liens except for Permitted Liens, and has full power and authority to grant to the Collateral Agent the security
interest in such Collateral pursuant hereto. The execution and delivery by such Debtor of this Agreement has been duly authorized by proper corporate or other proceedings and this Agreement constitutes a legal, valid and binding obligation of such
Debtor and creates a security interest that is enforceable against such Debtor in all now owned and hereafter acquired Collateral. 
  
 (B) When financing statements have been filed in the appropriate offices against such Debtor naming such Debtor as debtor and the Collateral Agent as
secured party in the locations listed on Schedule 3.1(B), and the proper filings are made with the STB, the Collateral Agent will have a fully perfected first priority security interest in that Collateral in which a security interest may be
perfected by filing, subject only to Permitted Liens. 
  
 (C) When
all Pledged Securities have been delivered to, and assuming the continued possession by, the Collateral Agent, for the benefit of Secured Parties, of the certificates evidencing all of the shares of Pledged Securities, together with stock powers or
other instruments of transfer related thereto and executed in blank and assuming that neither the Collateral Agent nor any Secured Party has notice of any adverse claim to the Pledged Securities, 
  

 9 

 the Collateral Agent will have the status of a “protected purchaser” for the benefit of the Secured Parties
with respect to the Pledged Securities under (and as defined in) Section 8-303(a) of the UCC; 
  
 (D) Upon the crediting of any financial assets to a Securities Account that is the subject of a Control Agreement (as defined in the Security Agreement) that has been executed and delivered by the Debtor having an
interest in such Securities Account, the securities intermediary identified therein and the Administrative Agent, as representative (as defined in Section 1-201(35) of the UCC) for the Collateral Agent for the benefit of the Secured Parties and the
Lenders under the Credit Agreement (in such capacity, the “Control Collateral Sub-Agent”), the Control Collateral Sub-Agent for the benefit of the Secured Parties and the Lenders will have Control over such Securities Account and in
the financial assets contained therein. No recordation or filing need be made, and no other action need be taken, in order to perfect the Control Collateral Sub-Agent’s security interest in such Securities Account or such financial assets;

  
 (E) Upon (1) the execution and delivery of each Control
Agreement relating to any Deposit Account of any Debtor by such Debtor, the depositary identified therein and the Control Collateral Sub-Agent or (2) the establishment of a Deposit Account of any Debtor in the name of the Control Collateral
Sub-Agent, the Control Collateral Sub-Agent for the benefit of the Secured Parties and the Lenders will have Control over such Deposit Account and all cash, checks, drafts, notes, bills of exchange, money orders and other like instruments held
therein. No recordation or filing need be made, and no other action need be taken, in order to perfect the Control Collateral Sub-Agent’s security interest in such Deposit Accounts. 
  
 (F) Upon the recordation or notation of the Collateral Agent’s security interest on the certificates of title or
ownership in respect of any motor vehicles of any Debtor and the filing of financing statements delivered by such Debtor having an interest in such motor vehicles to the Collateral Agent with respect to such motor vehicles, the security interest of
the Collateral Agent in such motor vehicles will be a valid and enforceable perfected security interest, which security interests will be superior to and prior to the rights of all third persons other than holders of Permitted Liens. 
  
 3.2 Conflicting Laws and Contracts. Neither the execution and delivery
by such Debtor of this Agreement, the creation and perfection of the security interest in the Collateral granted hereunder, nor compliance with the terms and provisions hereof will violate any material law, rule, regulation, order, writ, judgment,
injunction, decree or award binding on such Debtor or such Debtor’s certificate of incorporation, bylaws, or other organic documents, as applicable, the provisions of any material indenture, instrument or agreement to which such Debtor is a
party or is subject, or by which it, or its property, is bound, or conflict with or constitute a default thereunder, or result in the creation or imposition of any lien pursuant to the terms of any such indenture, instrument or agreement (other than
any lien of the Collateral Agent or the Administrative Agent on behalf of the Lenders). 
  
 3.3 Principal Location. Such Debtor’s type of organization, organization identification number (if any), federal employer identification number, mailing address, and the location of its chief executive
office and of the books and records relating to its Receivables, is 
  

 10 

 disclosed in Schedule 3.3. Such Debtor has no other places of business except those set forth in Schedule
3.4. 
  
 3.4 Property Locations. The Equipment and
Inventory is located solely at the locations described in Schedules 3.3 and 3.4, which Schedule 3.4 specifies whether the location is owned or leased by such Debtor. 
  
 3.5 No Other Names. Such Debtor has not conducted business under any name except the name in which it has executed
this Agreement and the names set forth on Schedule 3.5. 
  
 3.6 As to Capital Stock of Subsidiaries. The Collateral comprised of Capital Stock of any issuer that is (a) a Subsidiary of such Debtor and (b) a general partnership, limited partnership or limited liability company (i) are not
dealt in or traded on securities exchanges or in securities markets, (ii) do not have terms expressly providing that they are securities governed by Article 8 of the UCC as in effect in the jurisdiction in which such issuer was formed, and (iii) are
not investment company securities, and are not, therefore, Securities. Such Debtor does not have any direct Subsidiaries other than those specified on Schedule 3.6. 
  
 3.7 Inventory Records. Such Debtor keeps correct and accurate records itemizing and describing the type, quality, and
quantity of its Inventory and the book value thereof. 
  
 3.8
Filing Requirements. None of the Collateral is of a type for which security interests or liens may be perfected by filing under any federal statute except for Patents, Trademarks and Copyrights held by such Debtor and described in Schedule
3.8 and the locomotives, railcars and rolling stock of such Debtor described in Schedule 3.12. 
  
 3.9 No Financing Statements. No financing statement describing all or any portion of the Collateral which has not lapsed or been terminated naming
such Debtor as debtor has been filed in any jurisdiction except (i) financing statements naming the Collateral Agent on behalf of the Secured Parties as the secured party and (ii) existing financing statements relating to Permitted Liens.

  
 3.10 Deposit Accounts. Set forth on Schedule
3.10 hereto are all locations where any Debtor maintains any lock-box accounts, Deposit Accounts or Securities Accounts, together with the account numbers and the name and address of each financial institution with whom they are maintained.

  
 3.11 Vehicles. Set forth on Schedule 3.11 hereto
is a complete list of all vehicles owned by any Debtor having a fair market value of at least $30,000, the jurisdiction in which such vehicle is registered, the primary location out of which such vehicle is operated, the make, model, year and
vehicle identification number of such vehicle and the fair market value of such vehicle. 
  
 3.12 Locomotives, Railcars and Rolling Stock. Set forth on Schedule 3.12 hereto is a complete list and description of each locomotive, railcar and rolling stock owned by any Debtor, the identification
number thereof and the primary location out of which it is operated. 
  

 11 

 3.13 Survival of Representations. All representations and warranties of such Debtor contained in
this Agreement shall survive the execution and delivery of this Agreement. 
  
 SECTION 4: COVENANTS 
  
 From the
date of this Agreement, and thereafter until all Obligations have been paid in full or the Defeasance thereof shall have occurred: 
  
 4.1 General. 
  
 (A) Inspection. During regular business hours and after reasonable prior notice, such Debtor will permit the Collateral Agent, by its
representatives and agents (i) to inspect the Collateral, (ii) to examine and make copies of the records of such Debtor relating to the Collateral and (iii) to discuss the Collateral and the related records of such Debtor with, and to be advised as
to the same by, such Debtor’s officers and employees (and, in the case of any Receivable, with any person or entity which is or may be obligated thereon), all at such reasonable times and intervals as the Collateral Agent may determine, and all
at such Debtor’s expense. 
  
 (B) Taxes. Such Debtor
will pay when due all taxes, assessments and governmental charges and levies upon the Collateral, except those which are being contested in good faith by appropriate proceedings and for which adequate reserves are being maintained. If any Taxes
remain unpaid after such date and the lien, if any, securing such Taxes is not a Permitted Lien, then the Collateral Agent may, at its election in its sole discretion and without curing any Event of Default which may arise as a result thereof, pay
such taxes on behalf of the Debtors, and the amount paid by the Collateral Agent shall become an Obligation which is due and payable on demand by the Collateral Agent. 
  
 (C) Records and Reports; Notification of Default. Such Debtor will maintain complete and accurate books and records
with respect to the Collateral, and furnish to the Collateral Agent, such reports relating to the Collateral as the Collateral Agent shall from time to time request. Such Debtor will give prompt notice in writing to the Collateral Agent of the
occurrence of any Default or Event of Default and of any other development, financial or otherwise, which could reasonably be expected to materially and adversely affect the Collateral. 
  
 (D) Financing Statements and Other Actions; Defense of Title. Such Debtor will file all financing statements and
execute and deliver to the Collateral Agent such other documents and take such other actions as may from time to time be necessary in order to maintain a first perfected security interest in favor of the Collateral Agent in the Collateral, subject
only to Permitted Liens. Such Debtor will take any and all reasonable and lawful actions necessary to defend title to the Collateral against all persons and to defend the security interest of the Collateral Agent in the Collateral and the priority
thereof against any lien not expressly permitted hereunder. 
  
 (E) Disposition of Collateral. Such Debtor will not Dispose of any of such Debtor’s assets other than pursuant to a Permitted Disposition. 
  

 12 

 (F) Liens. Such Debtor will not create, incur, or suffer to exist any lien on the Collateral
except (i) the security interest created by this Agreement and (ii) Permitted Liens. 
  
 (G) Change in Location or Name. Such Debtor will not (i) have any Inventory or Equipment or proceeds or products thereof (other than Inventory or Equipment and proceeds thereof disposed of as permitted by
Section 4.1(E)) at a location other than a location specified in Schedule 3.3 or 3.4, (ii) maintain records relating to the Receivables at a location other than at the location specified on Schedule 3.3 or 3.4,
(iii) maintain a place of business at a location other than a location specified on Schedule 3.3 or 3.4, (iv) change its name, jurisdiction of incorporation, identity, corporate structure or taxpayer identification number or (v) change
its mailing address, unless (x) such Debtor shall have given the Collateral Agent not less than 10 days’ prior written notice thereof, (y) the Collateral Agent has received such duly executed and completed agreements, instruments and other
documents as may be necessary to preserve the validity, perfection or priority of the Collateral Agent’s security interest in the Collateral and (z) such Debtor shall have taken any such action necessary as may be necessary to preserve the
validity, perfection or priority of the Collateral Agent’s security interest in the Collateral. 
  
 (H) Other Financing Statements. Such Debtor will not authorize the filing of any financing statement naming it as debtor covering all or any
portion of the Collateral, except to perfect a lien related to a Permitted Lien. 
  
 4.2 Receivables. Such Debtor will deliver to the Collateral Agent immediately upon its request after the occurrence and during the continuance of an Event of Default duplicate invoices with respect to each
Account bearing such language of assignment as the Collateral Agent may request; provided, however, that no such request may be made by the Collateral Agent if (a) the Intercreditor Agreement has not been terminated and (b) any
Financing Agreement Obligations (as defined in the Intercreditor Agreement) (other than Excess Financing Agreement Obligations (as defined in the Intercreditor Agreement)) remain unpaid. 
  
 4.3 Maintenance of Collateral. Such Debtor will maintain, preserve, protect and keep the Collateral in good repair
and working and saleable condition, reasonable wear and tear excepted. 
  
 4.4 Instruments, Securities, Chattel Paper and Documents. Such Debtor will (i) deliver to the Collateral Agent immediately upon execution of this Agreement the originals of all Pledged Securities, Chattel Paper, Securities and
Instruments (if any then exist) constituting Collateral, (ii) hold in trust for the Collateral Agent upon receipt and immediately thereafter deliver to the Collateral Agent any Pledged Securities, Chattel Paper, Securities and Instruments
constituting Collateral, and (iii) upon the Collateral Agent’s request, after the occurrence and during the continuance of an Event of Default, deliver to the Collateral Agent (and thereafter hold in trust for the Collateral Agent upon receipt
and immediately deliver to the Collateral Agent) any Document evidencing or constituting Collateral, in each case, together with duly executed stock powers or other instruments of transfer, allonges or endoresements, as applicable. 
  
 4.5 Uncertificated Securities and Certain Other Investment Property.
Such Debtor will take any actions necessary to cause (i) the issuers of uncertificated Securities which are Collateral and (ii) any financial intermediary which is the holder of any Investment Property, to 
  

 13 

 cause the Collateral Agent to have and retain Control over such Securities or other Investment Property. Without limiting
the foregoing, such Debtor will, with respect to Investment Property held with a financial intermediary, cause such financial intermediary to enter into a Control Agreement with the Collateral Agent in form and substance satisfactory to the
Collateral Agent. 
  
 4.6 Stock and Other Ownership Interests.

  
 (A) Changes in Capital Structure of Issuers. Until the
occurrence and continuance of an Event of Default, such Debtor (i) may vote any of the Instruments, Securities or other Investment Property in a manner not otherwise prohibited under the Indenture or any other Indenture Document and (ii) shall be
entitled to any dividends, distributions or other proceeds thereof. 
  
 (B) Issuance of Additional Securities. Such Debtor will not permit or suffer any of its direct Subsidiaries or any Person that following the issuance thereof will become its direct Subsidiary to issue any Pledged Securities that are
Securities unless the Collateral Agent is concurrently with the issuance thereof given Control thereof (including if such Pledged Securities are certificated, the delivery thereof to the Collateral Agent, together with duly executed stock powers or
other instruments of transfer. 
  
 (C) Exercise of Rights in
Pledged Securities and other Investment Property. Such Debtor will permit the Collateral Agent or its nominee at any time after the occurrence and during the continuance of an Event of Default, without notice, to exercise all voting and
corporate rights relating to the Collateral (including the Pledged Securities), including exchange, subscription or any other rights, privileges, or options pertaining to any corporate securities or other ownership interests or Investment Property
in or of a corporation, partnership, joint venture or limited liability company constituting Collateral as if it were the absolute owner thereof. After the occurrence and during the continuance of an Event of Default, all dividends, distributions
and other proceeds thereof shall be held in trust by the applicable Debtor and promptly turned over to the Collateral Agent, together with such endorsements as may be applicable. 
  
 4.7 Deposit Accounts and Securities Accounts. Such Debtor shall not maintain, on or after the date that is 30 days
following the Issue Date, any Deposit Account (other than any Excluded Deposit Account) or Securities Account having an average closing balance in excess of (i) $100,000, individually, or (ii) $250,000, in the aggregate, in each case, for any five
consecutive Business Day period unless such Debtor and the applicable securities intermediary or bank shall have entered into a Control Agreement governing such Deposit Account or Securities Account, as the case may be, in order to cause the
Collateral Agent to have Control thereof. 
  
 4.8 Federal,
State or Municipal Claims. Such Debtor will notify the Collateral Agent of any Collateral which constitutes a claim against the United States of America government or any state or local government or any instrumentality or agency thereof, the
assignment of which claim is restricted by federal, state or municipal law. 
  

 14 

 4.9 Insurance. (A) Each Debtor will and will cause its Restricted Subsidiaries to maintain
insurance respecting its assets wherever located, covering loss or damage by fire, theft, explosion, and all other hazards and risks and in such amounts as ordinarily are insured against by other Persons engaged in the same or similar businesses
(the “Required Insurance”). All policies covering the Collateral are, subject to the rights of any holders of Permitted Liens holding claims senior to the Collateral Agent, to be made payable to the Collateral Agent, for the benefit
of the Secured Parties, in case of loss, under a standard non-contributory “lender” or “secured party” clause and are to contain such other, provisions as the Collateral Agent reasonably may require to fully protect the
Collateral Agent’s interests in the Collateral to any payments to be made under such policies. All original policies or true copies thereof or certificates of insurance evidencing the same are to be delivered to the Collateral Agent, premium
prepaid, with the loss payable endorsement in favor of the Collateral Agent, for the benefit of the Secured Parties, and shall provide for not less than thirty (30) days prior written notice to the Collateral Agent of the exercise of any right of
cancellation. Upon the occurrence of an Event of Default which is not waived, the Collateral Agent shall, subject to the rights of any holders of Permitted Liens holding claims senior to the Collateral Agent, have the sole right, in the name of the
Collateral Agent or such Debtor or any Restricted Subsidiary, to file claims under any insurance policies, to receive, receipt and give acquittance for any payments that may be payable thereunder, and to execute any and all endorsements, receipts,
releases, assignments, reassignments or other documents that may be necessary to effect the collection, compromise or settlement of any claims under any such insurance policies. 
  
 (B) Unless the Debtors provide the Collateral Agent with evidence of the Required Insurance in the manner set forth in
paragraph (a) above, the Collateral Agent may (but shall not be obligated to) purchase insurance at the Debtors’ expense to protect the interests of the Collateral Agent in the Collateral. The insurance purchased by the Collateral Agent may,
but need not, protect the Debtors’ interests in the Collateral, and therefore such insurance may not pay any claim which the Debtors make or any claim which is made against the Debtors in connection with the Collateral. The Debtors may later
request that the Collateral Agent cancel any insurance purchased by the Collateral Agent, but only after providing the Collateral Agent with satisfactory evidence that such Debtor has the Required Insurance. If the Collateral Agent, on behalf of the
Secured Parties, purchases insurance covering all or any portion of the Collateral, the Debtors shall be responsible for the costs of such insurance, including interest (at the applicable rate set forth under the Notes), until the effective date of
the cancellation or the expiration of the insurance, and shall promptly make reimburse the Collateral Agent in respect thereof upon its demand therefor. The costs of the premiums of any insurance purchased by the Collateral Agent may exceed the
costs of insurance which the Debtors may be able to purchase on their own. In the event that the Collateral Agent purchases insurance, the Collateral Agent will notify the Debtors of such purchase within thirty (30) days after the date of such
purchase. If, within thirty (30) days of the date of such notice, the Debtors provide the Collateral Agent with proof that the Debtors had the Required Insurance as of the date on which the Collateral Agent purchased insurance and the Debtors have
continued at all times thereafter to have the Required Insurance, then the Collateral Agent agrees to cancel the insurance purchased by the Collateral Agent and to the extent such Debtor has reimbursed the Collateral Agent for such costs and
interest, the Collateral Agent shall remit to such Debtor any amounts in respect thereof refunded by the underwriter thereof. 
  

 15 

 (C) Each Debtor agrees to pay any reasonable costs, fees or expenses which the Collateral Agent may
reasonably incur in connection herewith. 
  
 4.10 UCC
Filings. All financing statements and other filings (including filings with the United States Patent and Trademark Office, United States Copyright Office and the STB) required to be filed in order to create in favor of the Collateral Agent, for
the benefit of the Secured Parties a first priority perfected security interest in the Collateral (to the extent that such a security interest may be perfected by a filing under the UCC or applicable law), shall have been properly filed in each
office in each jurisdiction and office required; provided that any such filings with the United States Patent and Trademark Office, United States Copyright Office or the STB may be so filed promptly following the Issue Date but in any event
within the earlier of 45 days thereof and the date any such filing is made for the benefit of the Administrative Agent. The Collateral Agent shall have received (i) acknowledgement copies of all such filings (or, in lieu thereof, the Collateral
Agent shall have received other evidence satisfactory to the Collateral Agent that all such filings have been made) and in the case of any evidence of the filing with the STB, an opinion of counsel regarding such filing with the STB in form and
substance customary for transactions of this nature after taking into account the subordinate security interest of the Collateral Agent in the Collateral covered thereby, and (ii) evidence that all necessary filing fees, taxes and other expenses
related to such filings, have been paid in full. 
  
 SECTION 5:
REMEDIES 
  
 5.1 Remedies. Following the occurrence and
during the continuance of an Event of Default, the Collateral Agent may to the extent permitted by applicable law exercise any or all of the following rights and remedies: 
  

	 	(A)	those rights and remedies provided in this Agreement or any other Indenture Document; provided that this Section 5.1(A) shall not be understood to limit any rights or
remedies available to the Collateral Agent and the Secured Parties prior to the occurrence of an Event of Default; 

  

	 	(B)	(i) remove from any premises where same may be located any and all books and records, computers, electronic media and software programs associated with any Collateral (including
electronic records, contracts and signatures pertaining thereto), documents, instruments and files containing same, relating to the Accounts, or the Collateral Agent may use, at each Debtor’s expense, such of the Debtors’ personnel,
supplies or space at such Debtor’s places of business or otherwise, as may be necessary to properly administer and control the Accounts or the handling of collections and realizations thereon; (ii) bring suit, in the name of any Debtor or the
Collateral Agent, on behalf of the Secured Parties, and generally shall have all other rights respecting said Accounts, including the right to (a) accelerate or extend the time of payment, (b) settle, compromise, release in whole or in part any
amounts owing on any Accounts and (c) issue credits in the name of the applicable Debtor; (iii) sell, assign and deliver the Collateral and any returned, reclaimed or repossessed merchandise, with or without advertisement, at public or private sale,
for cash, on credit or otherwise, at the Collateral Agent’s sole option and discretion, and the Collateral Agent may bid or become a 

  

 16 

 purchaser at any such sale, free from any right of redemption, which right is hereby expressly waived by
such Debtor; (iv) foreclose its security interests in the Collateral by any available judicial procedure, or take possession of any or all of the Inventory and/or Other Collateral without judicial process, and to enter any premises where any
Inventory and/or Other Collateral may be located for the purpose of taking possession of or removing the same, and (v) exercise any other rights and remedies provided in law, in equity, by contract or otherwise. The Collateral Agent shall have the
right, without notice or advertisement, to sell, lease, or otherwise dispose of all or any part of the Collateral whether in its then condition or after further preparation or processing, in the name of any Debtor or the Collateral Agent, on behalf
of the Secured Parties, or in the name of such other party as the Collateral Agent may designate, either at public or private sale or at any broker’s board, in lots or in bulk, for cash or for credit, with or without warranties or
representations, and upon such other terms and conditions as the Collateral Agent in its sole discretion may deem advisable, and the Collateral Agent, on behalf of the Secured Parties, shall have the right to purchase at any such sale. If any
Inventory shall require rebuilding, repairing, maintenance or preparation, the Collateral Agent shall have the right, at its option, to do such of the aforesaid as is necessary, for the purpose of putting the Inventory in such saleable form as the
Collateral Agent shall deem appropriate. Each Debtor agrees, at the request of the Collateral Agent, to assemble the Inventory and to make it available to the Collateral Agent at premises of such Debtor or elsewhere and to make available to the
Collateral Agent at the premises and facilities of the Debtors for the purpose of the Collateral Agent’s taking possession of, removing or putting the Inventory in saleable form. However, if notice of intended disposition of any Collateral is
required by law, it is agreed that ten (10) days notice shall constitute reasonable notification and full compliance with the law. The net cash proceeds resulting from the Collateral Agent’s exercise of any of the foregoing rights, (after
deducting all charges, costs and expenses, including reasonable attorneys’ fees) shall be held as Collateral or turned over by the Collateral Agent to the Trustee for application to the Obligations, whether due or to become due, in accordance
with Section 6.10 of the Indenture, and such Debtor shall remain liable to the Collateral Agent and the other Secured Parties for any deficiencies, and the Collateral Agent, on behalf of the Secured Parties, in turn agrees to remit to such Debtor or
its successors or assigns, any surplus resulting therefrom. The enumeration of the foregoing rights is not intended to be exhaustive and the exercise of any right shall not preclude the exercise of any other rights, all of which shall be cumulative;

  

	 	(C)	those rights and remedies available to a secured party under the UCC (whether or not the UCC applies to the affected Collateral) or under any other applicable law (including any law
governing the exercise of a bank’s right of setoff or bankers’ lien) when a debtor is in default under a security agreement; or 

  

	 	(D)	without notice except as specifically provided in Section 7.1 or elsewhere herein, sell, lease, assign, grant an option or options to purchase or otherwise dispose of the
Collateral or any part thereof in one or more parcels at public or private sale, 

  

 17 

 for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent may deem
commercially reasonable. 
  
 5.2 Debtor’s Obligations Upon
Event of Default. Upon the request of the Collateral Agent after the occurrence and during the continuance of an Event of Default, such Debtor will: 
  

	 	(A)	assemble and make available to the Collateral Agent the Collateral and all records relating thereto at the premises or facilities of such Debtor; or 

  

	 	(B)	permit the Collateral Agent, by the Collateral Agent’s representatives and agents, to enter any premises where all or any part of the Collateral, or the books and records
relating thereto, or both, are located, to take possession of all or any part of the Collateral and to remove all or any part of the Collateral. 

  

5.3 License. The Collateral Agent is hereby granted a license or other right to use, following the occurrence and during the continuance of an
Event of Default, without charge, such Debtor’s Copyrights, Patents, Trademarks, labels, rights of use of any name, trade secrets, customer lists and advertising matter, or any property of a similar nature, as it pertains to the Collateral, in
completing production of, advertising for sale, and selling any Collateral and, following the occurrence and during the continuance of an Event of Default, such Debtor’s rights under all licenses and all franchise agreements shall inure to the
Collateral Agent’s benefit. In addition, such Debtor hereby irrevocably agrees that the Collateral Agent may, following the occurrence and during the continuance of an Event of Default, sell any of such Debtor’s Inventory directly to any
person, including persons who have previously purchased such Debtor’s Inventory from such Debtor and in connection with any such sale or other enforcement of the Collateral Agent’s rights under this Agreement, may sell Inventory which
bears any trademark owned by or licensed to such Debtor and any Inventory that is covered by any copyright owned by or licensed to such Debtor and the Collateral Agent may finish any work in process and affix any trademark owned by or licensed to
such Debtor and sell such Inventory as provided herein. 
  
 5.4
Waivers, Amendments and Remedies. No delay or omission of the Collateral Agent or any other Secured Party to exercise any right or remedy granted under this Agreement shall impair such right or remedy or be construed to be a waiver of any
Default or Event of Default or an acquiescence therein, and any single or partial exercise of any such right or remedy shall not preclude any other or further exercise thereof or the exercise of any other right or remedy. All rights and remedies
contained in this Agreement or by law afforded shall be cumulative and all shall be available to the Collateral Agent and the other Secured Parties until all Obligations have been paid in full or the Defeasance thereof shall have occurred.

  
 SECTION 6: PROCEEDS; COLLECTION OF RECEIVABLES 
  
 6.1 Collection of Receivables. The Collateral Agent may at any time in
its sole discretion after the occurrence and during the continuation of an Event of Default, by giving such Debtor written notice, elect to require that the Receivables be paid directly to the Collateral Agent for the benefit of the Secured Parties.
In such event, such Debtor shall, and shall permit the Collateral Agent to, promptly notify the account debtors or obligors under the Receivables of 
  

 18 

 the Collateral Agent’s interest therein and direct such account debtors or obligors to make payment of all amounts
then or thereafter due under the Receivables directly to the Collateral Agent. Upon receipt of any such notice from the Collateral Agent, such Debtor shall thereafter hold in trust for the Collateral Agent, on behalf of the Secured Parties, all
amounts and proceeds received by any of them with respect to the Receivables and Other Collateral and immediately and at all times thereafter deliver to the Collateral Agent all such amounts and proceeds in the same form as so received, whether by
cash, check, draft or otherwise, with any necessary endorsements. The Collateral Agent shall hold and apply funds so received as provided by the terms of Sections 6.3 and 6.4. 
  
 6.2 Special Collateral Account. Following the occurrence and during
the continuance of an Event of Default, the Collateral Agent may require all cash proceeds of the Collateral to be deposited in a special noninterest bearing cash collateral account maintained with or by the Collateral Agent, held there as security
for the payment of the Obligations. No Debtor shall have any control whatsoever over said cash collateral account and turned over to the Trustee for application thereto as specified in Section 6.10 of the Indenture. If any funds are on deposit in
such cash collateral account at a time when no Default Event of Default is then continuing, the Collateral Agent shall release such funds to the applicable Debtor. 
  
 6.3 Application of Proceeds. The proceeds of the Collateral shall be turned over by the Collateral Agent to the
Trustee for payment to the Obligations in accordance with Section 6.10 of the Indenture. 
  
 SECTION 7: GENERAL 
  
 7.1
Notice of Disposition of Collateral. Such Debtor hereby waives notice of the time and place of any public sale or the time after which any private sale or other disposition of all or any part of the Collateral may be made. To the extent such
notice may not be waived under applicable law, any notice made shall be deemed reasonable if sent to such Debtor, addressed as set forth in Section 7.12, at least ten days prior to (i) the date of any such public sale or (ii) the time after
which any such private sale or other disposition may be made. 
  
 7.2 Compromises and Collection of Collateral. Such Debtor and the Collateral Agent recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors with respect to certain of the Receivables, that certain
of the Receivables may be or become uncollectible in whole or in part and that the expense and probability of success in litigating a disputed Receivable may exceed the amount that reasonably may be expected to be recovered with respect to a
Receivable. In view of the foregoing, such Debtor agrees that the Collateral Agent may at any time and from time to time, if an Event of Default has occurred and is continuing, compromise with the obligor on any Receivable, accept in full payment of
any Receivable such amount as the Collateral Agent in its sole discretion shall determine or abandon any Receivable, and any such action by the Collateral Agent shall be commercially reasonable so long as the Collateral Agent acts in good faith
based on information known to it at the time it takes any such action. 
  
 7.3 Secured Party Performance of Debtor Obligations. Without having any obligation to do so, the Collateral Agent may perform or pay any obligation which such Debtor has agreed 
  

 19 

 to perform or pay in this Agreement upon the occurrence and continuation of an Event of Default (except with respect to
any such obligation relating to the creation, perfection or maintenance of any Lien of the Collateral Agent required hereunder) and such Debtor shall reimburse the Collateral Agent for any amounts paid by the Collateral Agent pursuant to this
Section 7.3. Such Debtor’s obligation to reimburse the Collateral Agent pursuant to the preceding sentence shall be an Obligation payable on demand. 
  

7.4 Authorization for Secured Party to Take Certain Action. Until the Obligations have been paid in full or the Defeasance thereof shall have
occurred, such Debtor irrevocably authorizes the Collateral Agent at any time and from time to time in the sole discretion of the Collateral Agent and appoint the Collateral Agent as its attorney in fact (i) to execute on behalf of such Debtor as
debtor and to file financing statements necessary or desirable in the Collateral Agent’s sole discretion to perfect and to maintain the perfection and priority of the Collateral Agent’s security interest in the Collateral, (ii) to receive,
take, endorse, sign, assign and deliver, all in the name of the Collateral Agent or such Debtor, any and all checks, notes, drafts, and other documents or instruments relating to the Collateral or consisting of Collateral or the proceeds thereof,
(iii) to file a carbon, photographic or other reproduction of this Agreement or any financing statement with respect to the Collateral as a financing statement and file amendments, renewals and continuations thereof in such offices as may be
necessary to perfect and to maintain the perfection and priority of the Collateral Agent’s security interest in the Collateral, (iv) to contact and enter into one or more agreements with the issuers of uncertificated or certificated Securities
which are Collateral or with financial intermediaries holding other Investment Property as may be necessary or advisable to give the Collateral Agent Control over such Securities or other Investment Property, (v) to perform such further acts as may
be necessary in order to effect the purposes of this Agreement, including the execution of Control Agreements with respect to Deposit Accounts, (vi) to receive, open and dispose of all mail addressed to such Debtor and to notify postal authorities
to change the address for delivery thereof to such address as the Collateral Agent may designate; (vii) to request from customers indebted on Accounts at any time, in the name of the Collateral Agent, or such Debtor, any certified public accounting
firm designated by the Collateral Agent or any other designee of the Collateral Agent, information concerning the amounts owing on the Accounts; (viii) to transmit to customers indebted on Accounts notice of the Collateral Agent’s interests
therein and to notify customers indebted on Accounts to make payment directly to the Collateral Agent, on behalf of the Secured Parties, for such Debtor’s account; (ix) to take or bring, in the name of the Collateral Agent, the other Secured
Parties and/or such Debtor, all steps, actions, suits or proceedings deemed by the Collateral Agent necessary or desirable to enforce or effect collection of the Accounts, (x) upon the occurrence and during the continuance of an Event of Default, to
hold the proceeds of any Collateral as Collateral or turn over such proceeds to the Trustee for application to the Obligations as provided in Section 6.10 of the Indenture and (xi) upon the occurrence and during the continuance of an Event of
Default, to discharge past due taxes, assessments, charges, fees or liens on the Collateral (except for such liens as are specifically permitted hereunder), and such Debtor agrees to reimburse the Collateral Agent on demand for any payment made or
any expense incurred by the Collateral Agent in connection therewith; provided that this authorization shall neither relieve such Debtor of any of its obligations under this Agreement or any other Indenture Document or obligate the Collateral
Agent to take any such action. 
  

 20 

 7.5 Specific Performance of Certain Covenants. Such Debtor acknowledges and agrees that a breach
of any of the covenants contained in Section 4.1(E), 4.1(F), 4.3, 4.4, 4.6(B), 5.2, 6 or 7.7 will cause irreparable injury to the Collateral Agent and the other Secured Parties, that the
Collateral Agent and the other Secured Parties have no adequate remedy at law in respect of such breaches and therefore agree, without limiting the right of the Collateral Agent or the other Secured Parties to seek and obtain specific performance of
other obligations of such Debtor contained in this Agreement, that the covenants of such Debtor contained in the Sections referred to in this Section 7.5 shall be specifically enforceable against such Debtor. 
  
 7.6 Use and Possession of Certain Premises. Upon the occurrence and
during the continuance of an Event of Default, the Collateral Agent shall be entitled to occupy and use any premises owned or leased by such Debtor where any of the Collateral or any records relating to the Collateral are located until such
Debtor’s Obligations are paid or the Collateral is removed therefrom, whichever first occurs, without any obligation to pay such Debtor for such use and occupancy. 
  
 7.7 Dispositions Not Authorized. Such Debtor is not authorized to sell or otherwise dispose of the Collateral except
as set forth in Section 4.1(E), and notwithstanding any course of dealing between such Debtor and the Collateral Agent or other conduct of the Collateral Agent, no authorization to sell or otherwise dispose of the Collateral (except as set
forth in Section 4.1(E)) shall be binding upon the Collateral Agent or the other Secured Parties unless such authorization is in writing signed by the Collateral Agent. 
  
 7.8 Taxes and Expenses. Any taxes payable or ruled payable by federal or state authority in respect of this Agreement
shall be paid by such Debtor, together with interest and penalties, if any. Such Debtor shall reimburse the Collateral Agent for any and all reasonable out-of-pocket expenses and internal charges (including reasonable attorneys’, auditors’
and accountants’ fees and reasonable time charges of attorneys, paralegals, auditors and accountants who may be employees of the Collateral Agent) paid or incurred by the Collateral Agent in connection with the preparation, execution, delivery,
administration, collection and enforcement of this Agreement and in the audit, analysis, administration, collection, preservation or sale of the Collateral (including the expenses and charges associated with any periodic or special audit of the
Collateral). Any and all reasonable costs and expenses incurred by such Debtor in the performance of actions required pursuant to the terms hereof shall be borne solely by such Debtor. 
  
 7.9 Termination. This Agreement shall continue in effect until all of the Obligations have been indefeasibly paid and
performed in full or the Defeasance thereof shall have occurred. 
  
 7.10 Distribution of Reports. Such Debtor authorizes the Collateral Agent, as the Collateral Agent may elect in its sole discretion, to discuss with and furnish to its affiliates and to the Secured Parties or to any other person or
entity having an interest in such Debtor’s Obligations (whether as a guarantor, pledgor of collateral, participant or otherwise) all financial statements, audit reports and other information pertaining to such Debtor and its Subsidiaries
whether such information was provided by such Debtor or prepared or obtained by the Collateral Agent. Neither the Collateral Agent nor any of its employees, officers, directors or agents makes any representation or warranty regarding any audit
reports or other analyses of such Debtor’s and 
  

 21 

 its Subsidiaries’ condition which the Collateral Agent may in its sole discretion prepare and elect to distribute,
nor shall the Collateral Agent or any of its employees, officers, directors or agents be liable to any person or entity receiving a copy of such reports or analyses for any inaccuracy or omission contained in or relating thereto. 
  
 7.11 Indemnity. 
  
 (A) Such Debtor hereby agrees to indemnify the Collateral Agent and the
other Secured Parties, and their respective successors, assigns, agents and employees, from and against any and all liabilities, damages, penalties, suits, costs, and expenses of any kind and nature (including all expenses of litigation or
preparation therefor whether or not the Collateral Agent or any Secured Party is a party thereto) imposed on, incurred by or asserted against the Collateral Agent or the other Secured Parties, or their respective successors, assigns, agents and
employees, in any way relating to or arising out of this Agreement, or the manufacture, purchase, acceptance, rejection, ownership, delivery, lease, possession, use, operation, condition, sale, return or other disposition of any Collateral
(including latent and other defects, whether or not discoverable by the Collateral Agent or the other Secured Parties or such Debtor, and any claim for patent, trademark or copyright infringement) except to the extent they are determined in a final
non-appealable judgment in a court of competent jurisdiction to have resulted from gross negligence or willful misconduct of the party seeking indemnification. The obligations of such Debtor under this Section 7.11 survive the termination of
this Agreement. 
  
 (B) Indemnity Relating to Remedies. The
Debtors jointly and severally agree to indemnify the Collateral Agent and the other Secured Parties and hold the Collateral Agent and the other Secured Parties harmless from and against any and all costs, expenses (including Out-of-Pocket Expenses),
claims and liabilities incurred by or imposed against the Collateral Agent or the other Secured Parties by reason of the Collateral Agent’s exercise of any of the Collateral Agent’s rights and remedies hereunder, including (a) any sale of
the Collateral, (b) the preservation, maintenance or securing of any Collateral, and (c) the defense of the Collateral Agent’s interests in the Collateral (including the defense of claims brought by any Debtor, as a debtor-in-possession or
otherwise, any secured or unsecured creditors of any Debtor, or any trustee or receiver in bankruptcy), provided that the Collateral Agent’s conduct in connection with the exercise of such rights and remedies does not constitute gross
negligence or willful misconduct, as determined by a court of competent jurisdiction. This indemnification shall survive the repayment or Defeasance of the Obligations. 
  
 (C) Environmental Indemnity. Each Debtor hereby indemnifies the Collateral Agent and the other Secured Parties, and
agrees to defend and hold the Collateral Agent and the other Secured Parties harmless, from and against any and all loss, damage, claim, liability, injury or expense which the Collateral Agent or the other Secured Parties may sustain or incur in
connection with any claim or expense asserted against the Collateral Agent or the other Secured Parties as a result of any environmental pollution, hazardous material or environmental clean-up of the Real Property, or any claim or expense which
results from any Debtor’s operations (including each Debtor’s off-site disposal practices). This indemnification shall survive the repayment or Defeasance of the Obligations. 
  

 22 

 7.12 Notices. Any notice required or permitted to be given under this Agreement shall be sent (and
deemed received) in the manner and to the addresses set forth in the Indenture. Each of such Debtor and the Collateral Agent may change the address for service of notice upon it by a notice in writing to the other parties. 
  
 7.13 Successors and Assigns. The terms and provisions of this
Agreement shall be binding upon and inure to the benefit of such Debtor, the Collateral Agent and the other Secured Parties and their respective successors and assigns; provided, however, that no Debtor nor the Collateral Agent may
assign this Agreement or any rights or duties hereunder other than pursuant to the terms of the Indenture. 
  
 7.14 CHOICE OF LAW; JURY TRIAL WAIVER. 
  
 (A) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED
WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT. 
  
 (B) EACH DEBTOR HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. 
  
 7.15 Amendments. No waiver, amendment or other variation of the terms,
conditions or provisions of this Agreement whatsoever shall be valid unless in writing and signed by the Debtors and the Collateral Agent. 
  
 7.16 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute an original, but all
of which taken together shall constitute one and the same instrument. 
  
 7.17 Collateral Agent’s Liability for Collateral of each Debtor. Each Debtor hereby agrees that: (a) so long as the Collateral Agent complies with its obligations, if any, under the UCC, the Collateral Agent shall not in any way
or manner be liable or responsible for: (i) the safekeeping of the Collateral of such Debtor, (ii) any loss or damage thereto occurring or arising in any manner or fashion from any cause, (iii) any diminution in the value thereof, or (iv) any act or
default of any carrier, warehouseman, bailee, forwarding agency, or other Person, and (b) all risk of loss, damage, or destruction of the Collateral of such Debtor shall be borne by such Debtor. 
  
 7.18 Revival and Reinstatement of Obligations. If the incurrence or
payment of the Obligations by any Debtor or the transfer by any Debtor to the Collateral Agent of any property of such Debtor should for any reason subsequently be declared to be void or voidable under any state or federal law relating to
creditors’ rights, including provisions of the Bankruptcy Code 
  

 23 

 relating to fraudulent conveyances, preferences, or other voidable or recoverable payments of money or transfers of
property (collectively, a “Voidable Transfer”), and if the Collateral Agent is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the reasonable advice of its counsel, then, as to
any such Voidable Transfer, or the amount thereof that the Collateral Agent is required or elects to repay or restore, and as to all reasonable costs, expenses, and attorneys fees of the Collateral Agent related thereto, the liability of such Debtor
automatically shall be revived, reinstated, and restored and shall exist as though such Voidable Transfer had never been made. 
  
 7.19 Debtors Remain Liable. Anything herein to the contrary notwithstanding: 
  
 (a) Debtors will remain liable under the contracts and agreements included in the Collateral to the extent
set forth therein, and will perform all of their duties and obligations under such contracts and agreements to the same extent as if this Agreement had not been executed; 
  
 (b) the exercise by Collateral Agent of any of its rights hereunder will not release any Debtor from any of
its duties or obligations under any such contracts or agreements included in the Collateral; and 
  
 (c) no Secured Party will have any obligation or liability under any contracts or agreements included in the Collateral by reason of this
Agreement, nor will any such Person be obligated to perform any of the obligations or duties of any Debtor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder. 
  
 7.20 Security Interest Absolute. To the maximum extent permitted by
law, all rights of Collateral Agent, all security interests hereunder, and all obligations of each Debtor hereunder, shall be absolute and unconditional irrespective of: 
  
 (a) any lack of validity or enforceability of any of the Obligations or any other agreement or instrument
relating thereto, including any of the Indenture Documents; 
  
 (b) any change in the time, manner, or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from any of the Indenture
Documents, or any other agreement or instrument relating thereto; 
  
 (c) any exchange, release, or non-perfection of any other collateral, or any release or amendment or waiver of or consent to departure from any guaranty for all or any of the Obligations; or 
  
 (d) any other circumstances that might otherwise constitute
a defense available to, or a discharge of, any Debtor. 
  
 To the
maximum extent permitted by law, each Debtor hereby waives any right to require Collateral Agent to: (A) proceed against or exhaust any security held from such Debtor; or (B) pursue any other remedy in Collateral Agent’s power whatsoever.

  

 24 

 7.21 Postponement of Subrogation. Each Debtor hereby agrees that it will not exercise any rights
which it may acquire by reason of any payment made hereunder, whether by way of subrogation, reimbursement or otherwise, until the prior payment in full of all Obligations (other than contingent indemnification obligations) or the Defeasance
thereof. Subject to the terms of the Intercreditor Agreement, any amount paid to any Debtor on account of any payment made hereunder prior to the payment in full of all Obligations (other than contingent indemnification obligations) or the
Defeasance thereof shall be held in trust for the benefit of Collateral Agent, the Holders and the Trustee and shall immediately be paid to Collateral Agent, to be distributed to the Trustee for application against the Obligations, whether matured
or unmatured, in accordance with the terms of the Indenture. In furtherance of the foregoing, for so long as any Obligations (other than contingent indemnification obligations) remain outstanding or the Defeasance thereof shall not have been
consummated, each Debtor shall refrain from taking any action or commencing any proceeding against Company or any other Debtor (or any of their respective successors or assigns, whether in connection with a Insolvency Proceeding or otherwise) to
recover any amounts in respect of payments made under this Agreement to Collateral Agent, the Trustee or any Holder. 
  
 7.22 Prior Agreements. This Agreement and the other Indenture Documents represent the entire agreement of the parties with regard to the subject
matter of this Agreement. 
  
 SECTION 8: THE COLLATERAL AGENT

  
 U.S. Bank, has been appointed Collateral Agent for the Secured
Parties hereunder pursuant to Section 12.01(b) of the Indenture. It is expressly understood and agreed by the parties to this Agreement that any authority conferred upon the Collateral Agent hereunder is subject to the terms of the delegation of
authority made by the other Secured Parties to the Collateral Agent pursuant to the Indenture and that the Collateral Agent has agreed to act (and any successor Agent shall act) as such hereunder only on the express conditions contained in the
Indenture (including Article 12 thereof). Any successor collateral agent shall be entitled to all the rights, interests and benefits of the Collateral Agent hereunder. 
  
 SECTION 9: INTERCREDITOR AGREEMENT 
  

(A) The Liens granted hereunder in favor of Collateral Agent for the benefit of the Secured Parties in respect of the Collateral and the exercise of
any right related thereto thereby shall be subject, in each case, to the terms of the Intercreditor Agreement. 
  
 (B) In the event of any direct conflict between the express terms and provisions of this Agreement and of the Intercreditor Agreement, the terms and
provisions of the Intercreditor Agreement shall control. 
  
 (C)
Notwithstanding anything to the contrary herein, any provision hereof that requires any Debtor to (i) deliver any Shared Collateral to Collateral Agent or (ii) provide that the Collateral Agent have Control over such Shared Collateral may be
satisfied by (A) the delivery of such Shared Collateral by such Debtor to the Administrative Agent for the benefit of the Lenders and Collateral Agent for the benefit of the Secured Parties pursuant to Section 31 of the Intercreditor Agreement and
(B) providing that the Administrative Agent be provided with 
  

 25 

 Control with respect to such Collateral of such Debtor for the benefit of the Lenders and Collateral Agent for the
benefit of Secured Parties pursuant to Section 31 of the Intercreditor Agreement. 
  
 [Remainder of page intentionally blank] 
  

 26 

  
 IN WITNESS WHEREOF, each
Debtor and the Collateral Agent have executed this Agreement as of the date first above written. 
  

			
	SHEFFIELD STEEL CORPORATION
		
	By:	 	 /s/ Stephen R. Johnson

	Name:	 	Stephen R. Johnson
	Title:	 	 Vice President and
 Chief Financial
Officer

	 	 	 
	
	SAND SPRINGS RAILWAY COMPANY
		
	By:	 	 /s/ Stephen R. Johnson

	Name:	 	Stephen R. Johnson
	Title:	 	 Vice President and
 Chief Financial
Officer

	
	U.S. BANK NATIONAL ASSOCIATION, as Collateral Agent
		
	By:	 	 /s/ Elizabeth C. Hammer

	Name:	 	Elizabeth C. Hammer
	Title:	 	Vice President

  

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