EXHIBIT 10.46 December 4, 2001 VIA FACSIMILE Mr. James P. Nolan 220 N. Jefferson Sand Springs, Oklahoma 74063 Re: Third Amended and Restated Forbearance Agreement dated as of November 27, 2001 Mr. Nolan: With reference to that certain Third Amended and Restated Forbearance Agreement dated as of November 27, 2001, the date which the Borrower must repay the Overadvance to the Lender is hereby modified as follows: The Borrower agrees and acknowledges that the Borrower will repay the Overadvance to the Lender on or before 5:00 p.m. Atlanta time, Monday December 10, 2001. The remaining terms and conditions of the Third Amended and Restated Forbearance Agreement remain unchanged and in full force and effect. Very truly yours, BANK OF AMERICA, N.A. By: /s/ Stuart A. Hall ------------------------------ Name: Stuart A. Hall Title: Vice President 1 Mr. James P. Nolan December 4, 2001 Page 2 BORROWER: Read, consented and agreed to this 4th day of December, 2001 SHEFFIELD STEEL CORPORATION By: /s/ Stephen R. Johnson --------------------------------------- Name: Stephen R. Johnson ---------------------------------- Title: Vice President & CFO --------------------------------- WADDELL'S REBAR FABRICATORS, INC. By: /s/ Stephen R. Johnson --------------------------------------- Name: Stephen R. Johnson ---------------------------------- Title: Vice President & CFO --------------------------------- WELLINGTON INDUSTRIES, INC. By: /s/ Stephen R. Johnson --------------------------------------- Name: Stephen R. Johnson ---------------------------------- Title: Vice President & CFO --------------------------------- 2