Document:

Form of Amended and Restated Second Amendment

 EXHIBIT 4.17 
  
 FORM OF AMENDED AND RESTATED SECOND AMENDMENT TO 
 SECOND AMENDED AND RESTATED CREDIT AGREEMENT 
 AND CONSENTS 
  
 This AMENDED AND RESTATED SECOND AMENDMENT TO SECOND AMENDED AND RESTATED
CREDIT AGREEMENT AND CONSENTS (this “Amendment”) is dated as of December 14, 2004, and entered into by and among EARLE M. JORGENSEN HOLDING COMPANY, INC., a Delaware corporation (“Holding”), EARLE M. JORGENSEN COMPANY, a Delaware
corporation (the “Borrower”), the banks and other financial institutions signatory hereto that are parties as Lenders to the Credit Agreement referred to below (the “Lenders”), and DEUTSCHE BANK TRUST COMPANY AMERICAS (formerly
known as Bankers Trust Company), as agent for the Lenders (in such capacity, the “Agent”). 
  
 Recitals 
  
 Whereas, the Borrower, Holding, the Lenders, the Agent and Deutsche Bank Securities, Inc., as Lead Arranger and Sole Book Runner, have entered into that certain Second Amended and Restated Credit Agreement dated as of March 3, 1993,
amended and restated as of March 24, 1998 and further amended and restated as of April 12, 2002, as amended by that certain First Amendment to Second Amended and Restated Credit Agreement and Consent dated as of May 22, 2002 (as so amended, the
“Credit Agreement”; capitalized terms used in this Amendment without definition shall have the meanings given such terms in the Credit Agreement); and 
  

Whereas, the Borrower, Holding, the Lenders and the Agent executed and delivered that certain Second Amendment to Second Amended and Restated
Credit Agreement and Consent dated as of February 19, 2004 (the “Prior Amendment”), in connection with a proposed financial restructuring, but such Prior Amendment never became effective in accordance with its terms; 
  
 Whereas, in lieu of the merger and restructuring transactions
described in the Prior Amendment, the Borrower and Holding propose to effect a financial restructuring in connection with an initial public offering of the common stock of the Borrower and have requested that the Lenders and the Agent consent to the
transactions described herein and effect certain amendments to the Credit Agreement related thereto; 
  
 Whereas, Holding, the Borrower and the Borrower’s Wholly-Owned Subsidiary, EMJ Metals LLC, propose to enter into an Agreement and Plan of
Merger and Reorganization, dated as of December 17, 2004, providing for the merger of Holding with and into EMJ Metals LLC, with EMJ Metals LLC surviving, and all of the shares of common stock of Holding converting into shares of common stock of the
Borrower and all of the shares of Series A and Series B Preferred Stock of Holding converting into a combination of cash (payable solely out of proceeds of the public offering) and shares of common stock of the Borrower; and 
  
 Whereas, in connection therewith Holding and the holders of the
Holding Notes and certain of Holding’s stockholders propose to enter into an Exchange Agreement dated as of December 17, 2004, providing for the exchange of all outstanding Holding Notes and Holding PIK Notes for a combination of cash (payable
solely out of proceeds of the public offering) and 

  

 
shares of the common stock of the Borrower and the exchange of warrants to purchase shares of Holding common stock for shares of the common stock of the
Borrower; and 
  
 Whereas, whether or not the public
offering and the financial restructuring are effected, the Borrower intends to enter into an amendment to the consent order previously entered into in connection with the DOL Litigation, and in connection therewith to amend the ESOP and has
requested that the Lenders consent to such amendments and the payments and contributions to be made pursuant thereto; and 
  
 Whereas, the Borrower, Holding, the Lenders and the Agent intend that this Amendment amend and restate the Prior Amendment in its entirety;

  
 Now Therefore, in consideration of the premises
and the mutual agreements set forth herein, the Borrower, Holding, the Lenders and the Agent agree as follows: 
  
 1. CONSENT TO MERGER, EXCHANGE OF HOLDING NOTES AND, HOLDING PIK NOTES AND PAYMENTS WITH RESPECT TO PREFERRED STOCK. By execution of this
amendment, each lender hereby consents to (i) the merger of Holding with and into EMJ Metals LLC on the terms set forth in the Merger Agreement (as hereinafter defined), including the conversion of all of the shares of Holding’s Series A and
Series B Preferred Stock into the right to receive cash payable solely out of the proceeds of the IPO (as hereinafter defined) and shares of the common stock of the Borrower, and all of the shares of Holding common stock into shares of the common
stock of the Borrower, and (ii) concurrently therewith, the exchange of all of the Holding Notes and Holding PIK Notes for cash payable solely out of the proceeds of the IPO and shares of the common stock of the Borrower and the exchange of warrants
to purchase shares of Holding common stock for shares of the common stock of the Borrower on a net exercise basis, in each case on the terms set forth in the Exchange Agreement (as hereinafter defined), all notwithstanding the restrictions contained
in Sections 8.1 and 8.11 of the Credit Agreement; provided, however, that (x) the IPO (as hereinafter defined) is consummated substantially concurrently therewith and.(y) the Dissenters’ Rights Condition shall have been met. 

 
 2. AMENDMENTS TO CREDIT AGREEMENT. Subject to the conditions
and on the terms set forth in this Amendment and in reliance on the representations and warranties of the Borrower and holding set forth in this Amendment, the Credit Agreement is amended as follows: 
  
 2.1 Amendments to Definitions.
Section 1.1 of the Credit Agreement is amended as follows: 
  
 (a) The definitions of “Change of Control,” “Credit Parties,” “ESOP”, “Expiration Date”, “Fixed Charges”,
“Guarantor”, and “Permitted Transactions” are deleted in their entirety and replaced with the following: 
  
 Change of Control shall mean (i) a “Change of Control” (or any similar term) under and as defined in the Senior Secured
Note Documents, (ii) prior to the consummation of the IPO, the direct or indirect acquisition by any Person, entity or “group” (as such term is defined in Section 13(d)(3) of the Securities Exchange 

  

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Act of 1934 as amended (the “Exchange Act”)) of beneficial ownership (as such term is defined in Rule 13d-3 promulgated under the Exchange Act) of
30% or more of the outstanding shares of voting stock of the Borrower or Holding, other than any such Person, entity or group which is the direct transferee of any of the voting stock of the Borrower or Holding from Kelso & Company and/or its
Affiliates, officers and employees of Holding or the Borrower and/or the ESOP so long as Kelso & Company and its Affiliates, officers and employees of Holding or the Borrower and/or the ESOP which owned the voting stock on the Restatement
Effective Date continue to own a majority of the voting stock of the Borrower or Holding, as the case may be, (iii) prior to the Merger Effective Time, Holding shall cease to own a majority of the Voting Stock of the Borrower; (iv) after the
consummation of the IPO, the direct or indirect acquisition by any Person, entity or “group” (as such term is defined in Section 13(d)(3) of the Exchange Act) of beneficial ownership (as such term is defined in Rule 13d-3 promulgated under
the Exchange Act) of 30% or more of the outstanding shares of voting stock of the Borrower; or (v) during any period of 24 consecutive months, individuals who at the beginning of such period constituted the board of directors of Holding or Borrower
(together with any new directors whose election by such board of directors or whose nomination for election by the shareholders of Holding or Borrower was approved by a majority of the directors then still in office who were either directors at the
beginning of such period or whose election or nomination was previously so approved) cease for any reason to constitute a majority of the board of directors of Holding or the Borrower then in office. 
  
 Credit Parties shall mean, collectively, the
Borrower, EMJ Metals and, prior to the Merger Effective Time, Holding. 
  
 ESOP shall mean the Earle M. Jorgensen Employee Stock Ownership Plan, as in effect on the Restatement Effective Date, and as amended to the extent required by applicable law and as amended by the ESOP
Amendments (and renamed the Earle M. Jorgensen Employee Stock Bonus Plan), and the Supplemental Bonus Plans. 
  
 Expiration Date shall mean April 7, 2006. 
  

Fixed Charges for any period shall mean the sum of (i) Interest Expense, (ii) for purposes of calculating the Fixed Charge
Coverage Ratio as used in Section 8.6(b)(iv)(C), Dividends paid from Available Amounts calculated for such period (other than Dividends the proceeds of which are promptly contributed to the Borrower) plus the amount of the Dividend proposed to be
paid pursuant to Section 8.6(b)(iv)(C) at such time of the calculation for such purpose, and (iii) any amounts that the Borrower is required by the DOL Consent Order to pay to repurchase shares of its capital stock from participants to whom such
shares were distributed from the ESOP in excess of the fair market value of such shares as determined pursuant to the most recent annual ESOP appraisal. 
  

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 Guarantor shall mean, prior to the Merger Effective Time, Holding in its capacity
as the guarantor under Article 12 and thereafter shall mean EMJ Metals as the successor by merger to Holding. 
  
 Permitted Transactions means: (i) reasonable and customary fees, compensation and benefits paid to officers, directors, employees
or consultants of the Borrower or any of its Subsidiaries or their respective Affiliates for services rendered to the Borrower or any such Subsidiary in the ordinary course of business consistent with past practice; (ii) transfers of goods and
services by or among the Borrower and its Subsidiaries and their respective Affiliates in the ordinary course of business on fair and reasonable terms, provided, that if any such transaction or series of related transactions involves payment in
excess of $3,000,000, the Board of Directors of the Borrower shall determine in good faith by resolution that such transaction is on terms fair and reasonable to the Borrower, (iii) Dividends permitted under Section 8.6; (iv) prior to the Merger
Effective Time, transactions pursuant to the Holding Management Agreement (provided that the 5% service fee referred to in Section 5 of the Holding Management Agreement shall not exceed $200,000 per annum) and the Tax Sharing Agreement; (v) any
transactions between the Borrower or any Subsidiary and the ESOP and permitted under Sections 8.3 and 8.5; (vi) transactions between Holding, the Borrower or its Subsidiaries (other than Insurance Sub) and Insurance Sub in connection with compliance
by the Borrower with Section 7.10; (vii) consummation of the Merger in accordance with the Merger Agreement; provided that all cash payments are made solely with the proceeds of the IPO; (vii) on the Merger Effective Date, exchange of the Holding
Notes and Holding PIK Notes for cash and shares of common stock of the Borrower on the terms described in the Exchange Agreement, provided that all cash payments are made solely with proceeds of the IPO; (viii) on the Merger Effective Date, payment
of a fee to Kelso & Company in an amount not to exceed $6,250,000, provided that the payment is either made with proceeds of the IPO or made by the Borrower and if made by the Borrower the amount of such payment shall be deducted in calculating
EBITDA, (ix) payment of a special bonus to Maurice A. Nelson, Jr. in 2004 of $3,500,000; (x) if the IPO is consummated, payment of a bonus to Maurice S. Nelson, Jr. in an amount not to exceed $3,000,000 but only if such bonus is paid no earlier than
March 31, 2007 and is deducted in calculating EBITDA; and (xi) contributions to the Supplemental Bonus Plans required by the DOL Consent Order and the ESOP Amendment, provided that the cash contribution shall not exceed $1,750,000. 
  
 (b) The definition of “EBITDA” is amended
to add the following clause (viii) at the end of such definition: 
  
 “and (viii) plus, without duplication, the cash charge not to exceed $1,750,000 in connection with the special contribution to the ESOP pursuant to the ESOP Amendments, to the extent subtracted in calculating Consolidated Net Income
for such period, determined in accordance with GAAP. 
  

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 (c) The following new definitions are inserted in proper alphabetical order: 

 
 Dissenters’ Rights Condition shall mean that
stockholders of Holding shall not have exercised dissenters’ or appraisal rights with respect to shares of the capital stock of Holding valued, in the aggregate, at more than $5,000,000 based on the consideration for each class of capital stock
to be paid under the Merger Agreement (namely the IPO price for each share of common stock, $816.68 for each share of Series A Preferred Stock and $1,000 for each share of Series B Preferred Stock). 
  
 DOL Consent Order shall mean the Amended Consent
Order and Release dated                     , 2004 in connection with Civil Action No. SACV 02-257 DOL (MLGx). 
  
 EMJ Metals shall mean EMJ Metals LLC, a Delaware
limited liability company and a Wholly-Owned Subsidiary of the Borrower. 
  
 ESOP Amendments means the Sixth Amendment to the Earle M. Jorgensen Employee Stock Ownership Plan (amended and restated effective as of April 1, 2001) and the Seventh Amendment to the Earle M. Jorgensen
Employee Stock Bonus Plan (amended and restated effective as of April 1, 2001). 
  
 Exchange Agreement shall mean that certain Exchange Agreement among Holding, the Borrower, Kelso Investment Associates, L.P., Kelso
Equity Partners II, L.P., KIA-III-Earle M. Jorgensen, L.P. and Kelso Investment Associates IV, L.P.. 
  
 Former Employees Plan shall mean the Former Employees Stock Bonus Plan as adopted in connection with the DOL Consent Order and the
ESOP Amendments, and as amended to the extent required by law. 
  
 IPO means the initial public offering of the Borrower’s common stock. 
  
 Merger means the merger of Holding with and into EMJ Metals, with EMJ Metals surviving, pursuant to the Merger Agreement, but only
if it occurs substantially concurrently with consummation of the IPO and the exchange pursuant to the Exchange Agreement. 
  
 Merger Agreement means the Agreement and Plan of Merger and Reorganization by and among Holding, the Borrower and EMJ Metals,
pursuant to which Holding will merge with and into EMJ Metals, and EMJ Metals shall be the surviving entity. 
  
 Merger Effective Time shall mean the time of filing of a certificate of merger with the Secretary of State of the State of Delaware
effecting the Merger. 
  

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 Reorganization Documents shall mean the Merger Agreement, the Exchange Agreement,
and the exhibits attached thereto. 
  
 Second
Amendment shall mean the Amended and Restated Second Amendment to Second Amended and Restated Credit Agreement and Consents dated as of
                    , 2004 by and among Holding, the Borrower, the Lenders and the Agent. 
  
 Second Amendment Effective Date shall mean the date
on which the Second Amendment became effective in accordance with its terms. 
  
 Stock Option Plan shall mean the Earle M. Jorgensen Holding Company, Inc. Stock Option Plan effective January 30, 1997, as amended to the Second Amendment Effective Date. 
  
 Supplemental Bonus Plans shall mean the Supplemental
Stock Bonus Plan as adopted in connection with the DOL Consent Order and the ESOP Amendments, and as amended to the extent required by law and the Former Employees Plan. 
  
 2.2 Amendment to Section 7.1 (Financial Information). Clause (a)(i) of Section
7.1 is deleted in its entirety and replaced with the following: 
  
 (i) for each year ended prior to the Merger Effective Date, audited consolidated balance sheets, statements of operations, statements of cash flows and statements of changes in shareholders’ equity of Holding as
of the close of such fiscal year;. 
  
 2.3
Amendment to Section 8.1 (Consolidation, Merger, Sale or Purchase of Assets, etc). A new clause (e) is added to Section 8.1 of the Credit Agreement to read as follows: 
  
 (e) The Credit Parties may effect the Merger substantially
concurrently with the IPO and the consummation of the exchange pursuant to the Exchange Agreement; provided that all cash payments for debt or equity securities of Holding may be made solely with the proceeds of the IPO and the Dissenters’
Rights Condition shall have been met. 
  
 2.4 Amendment to Sections 8.2, , 8.3, 8.4 and 8.5. Each of Sections 8.2, 8.3, 8.4 and 8.5 is amended to delete the phrase “Holding will not, and will not permit any of its Subsidiaries to” and to
replace it with “Prior to the Merger Effective Time, Holding will not, and after the Merger Effective Time, the Borrower will not, nor will either of them permit any of its Subsidiaries to”. 
  
 2.5 Amendments to Section 8.6
(Dividends). Section 8.6 of the Credit Agreement is amended to 
  
 (i) insert at the beginning of clause (b) “Prior to the Merger Effective Time,” 
  

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 (ii) delete clauses (A) and (B) of clause (b)(iv) and replace them with the following:

  
 (A) pay the amounts payable to any director,
officer or employee (or their estates) of Holding, the Borrower or any of its Subsidiaries upon death, disability or termination of employment of such officers and employees as required pursuant to the terms of any Shareholders’ Agreement
(including any extension thereof) as in effect on the date of this Credit Agreement, the ESOP or the Stock Option Plan and pay up to $3,100,000 to cash out stock options held by Maurice S. Nelson, Jr.; provided, however, that the aggregate amount of
all such payments under this clause (A) in any fiscal year of the Borrower shall not exceed $5,000,000, (B) pay amounts to repurchase shares of its capital stock from participants who were distributed such shares from, and as required under, the
ESOP; provided, however, that any amounts that the Borrower is required by the DOL Consent Order or the ESOP Amendments to pay in excess of the fair market value of such shares as determined pursuant to the most recent annual ESOP appraisal shall be
treated as a Fixed Charge; 
  
 (iii) add a new
clause (D) at the end of clause (b)(iv) to read as follows: 
  
 (D) make cash contributions to the Employees Plan in an amount not to exceed $1,750,000; and 
  
 (iv) add the following new clauses (c) and (d): 
  

(c) concurrently with consummation of the IPO and the Merger, the Borrower may acquire Holding Notes and Holding PIK Notes in exchange
for the Borrower’s common stock and cash in accordance with the Exchange Agreement and shares of Holding’s capital stock and warrants may be converted into shares of common stock of the Borrower on the terms described in the Merger
Agreement and the Exchange Agreement; provided that in each case cash payments may be made solely with proceeds of the IPO; and 
  
 (d) after the Merger Effective Date, the Borrower may pay amounts payable to any former officer or employee (or their estates) required
pursuant to the Employees Plan; provided that the aggregate of all such payments under this clause (d) shall not exceed $400,000. 
  
 2.6 Amendment to Section 8.7 (Transactions with Affiliates). Clause (vi) of Section 8.7 of the Credit
Agreement is deleted in its entirety and replaced with the following 
  
 (vi) cash contributions by the Borrower and its Subsidiaries to the ESOP in an amount not to exceed 10% of their aggregate cash compensation to employees during any fiscal year plus any amounts reinvested during such
fiscal year by the ESOP prior to the Merger Effective Time in capital stock of Holding and 

  

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contributed to the Borrower or, after the Merger Effective Time, in capital stock of the Borrower, 
  
 2.7 Amendment to Section 8.8 (Changes in
Business). A new clause (d) is added to Section 8.8 of the Credit Agreement to read as follows: 
  
 (d) EMJ Metals shall not engage in any business or incur any Indebtedness. 
  
 2.8 Amendment to Section 8.11 (Limitation on Voluntary Payments, etc.). Section
8.11 of the Credit Agreement is amended to (i) delete clause (a)(ii)(z) in its entirety and replace it with the following: 
  
 (z) any provision of its Certificate of Incorporation or By Laws relating to any preferred or preference stock (other than the amendment
and restatement of the Certificate of Incorporation and Bylaws of the Borrower effected at the Merger Effective Time to increase the authorized capital stock) or the Shareholders’ Agreement (other than to terminate such Shareholders’
Agreement at the Merger Effective Time) (in each case without the consent of the Agent). 
  
 and (ii) to add the following at the end of clause (b): 
  
 Notwithstanding the foregoing, the Holding Notes and Holding PIK Notes may be redeemed or acquired solely in exchange for the issuance of common stock of the Borrower and/or with the proceeds of the IPO in accordance
with the terms of the Exchange Agreement at the Merger Effective Time. 
  
 2.9 Amendment to Section 11.5 (Notices). Section 11.5 of the Credit Agreement is amended to change the address and facsimile for notices to the Agent and the Lenders to: 
  
 Deutsche Bank Trust Company Americas 
 222 South Riverside Plaza 
 Floor 29SE

 Chicago, IL 60606 
 Attention:
Vik Dewanjee 
 Facsimile: 312-537-1327 
  
 and for notices to the Borrower to: 
  
 Earle M. Jorgensen Company 
 10650 Alameda
Street 
 Lynwood, CA 90262 
 Attention: William S. Johnson 
 Facsimile: 323-567-1034 
  
 3. REPRESENTATIONS AND WARRANTIES OF THE BORROWER AND HOLDING. In order to induce the Lenders and the Agent to
enter into this Amendment, the Borrower and Holding represent and warrant to each Lender and the Agent that the following 

  

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statements are true, correct and complete on the date hereof and will be true, correct and complete on the effective date of this Amendment: 
  
 3.1 Power and Authority. Each of
the Credit Parties has all corporate power and authority to enter into this Amendment and the Reorganization Documents to which it is a party and to carry out the transactions contemplated by, and to perform its obligations under or in respect of,
this Amendment, the Credit Agreement as amended hereby and the Reorganization Documents and the Borrower has the corporate power and authority to effect the IPO and enter into the DOL Consent Order. 
  
 3.2 Corporate Action. The
execution and delivery of this Amendment and the Reorganization Documents, the DOL Consent Order and the performance of the obligations of each Credit Party under or in respect of this Amendment, the Reorganization Documents, the DOL Consent Order
and of the Credit Agreement as amended hereby have been duly authorized by all necessary corporate action on the part of each of the Credit Parties. 
  
 3.3 No Conflict or Violation or Required Consent or Approval. The execution and delivery of this Amendment,
the Reorganization Documents, the DOL Consent Order and the performance of the obligations of each Credit Party under or in respect of this Amendment, the Credit Agreement as amended hereby, the DOL Consent Order and the Reorganization Documents,
and the IPO do not and will not conflict with or violate (a) any provision of the articles or certificate of incorporation or bylaws or other governing documents of any Credit Party, (b) any Requirement of Law, (c) any order, judgment or decree of
any court or other governmental agency binding on any Credit Party or any of its Subsidiaries, or (d) any indenture, agreement or instrument to which any Credit Party or any of its Subsidiaries is a party or by which any Credit Party or any of its
Subsidiaries, or any property of any of them, is bound, and do not and will not require any consent or approval of any Person, except (i) shareholder approval of the Merger Agreement, (ii) approval by the Department of Labor of the DOL Consent Order
and the ESOP Amendments and (iii) the filing of the certificate to effect the Merger. 
  
 3.4 Execution, Delivery and Enforceability. This Amendment, and the Credit Agreement as amended hereby have
been duly executed and delivered by each Credit Party which is a party thereto and are the legal, valid and binding obligations of such Credit Party, enforceable in accordance with their terms, except as enforceability may be affected by applicable
bankruptcy, insolvency, reorganization, moratorium and similar laws of general application relating to or affecting the rights of creditors generally. 
  
 3.5 No Default or Event of Default. No event has occurred and is continuing or will result from the execution
and delivery of this Amendment or the execution, delivery and performance of the Reorganization Documents or the DOL Consent Order that would constitute a Default or an Event of Default. 
  

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 3.6 No Material Adverse Effect. No change or development
which has had or is reasonably expected to have a Material Adverse Effect has occurred and is continuing. 
  
 3.7 Representations and Warranties. Each of the representations and warranties contained in the Credit
Documents is and will be true and correct in all material respects on and as of the date hereof and as of the effective date of this Amendment, except to the extent that such representations and warranties specifically relate to an earlier date, in
which case they were true, correct and complete in all material respects as of such earlier date. 
  
 4. CONDITIONS TO EFFECTIVENESS OF THIS AMENDMENT. This Amendment shall be effective only if and when signed by, and when counterparts hereof
shall have been delivered to the Agent (by hand delivery, mail or telecopy) by, the Borrower, Holding and the Required Lenders and only if and when each of the following conditions is satisfied: 
  
 4.1 No Default or Event of Default;
Accuracy of Representations and Warranties. No Default or Event of Default shall exist and each of the representations and warranties made by the Credit Parties herein and in or pursuant to the Credit Documents shall be true and correct in
all material respects as if made on and as of the date on which this Amendment becomes effective (except that any such representation or warranty that is expressly stated as being made only as of a specified earlier date shall be true and correct as
of such earlier date). 
  
 4.2
Opinion of Counsel. If required by the Agent, the Borrower shall have delivered to the Agent opinion(s) of counsel in form and substance satisfactory to Agent and its counsel. 
  
 4.3 Expense Reimbursements. The
Borrower shall have paid all expense reimbursements due to the Agent pursuant to Section 11.10 of the Credit Agreement. 
  
 5. EFFECT OF THIS AMENDMENT. From and after the date on which this Amendment becomes effective, this Amendment amends and restates the Prior
Amendment in its entirety. From and after the date on which this Amendment becomes effective, all references in the Credit Documents to the Credit Agreement shall mean the Credit Agreement as amended hereby. Except as expressly amended hereby or
waived herein, the Credit Agreement and the other Credit Documents, including the Liens granted thereunder, shall remain in full force and effect, and are hereby ratified and confirmed. 
  
 6. APPLICABLE LAW. THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS AMENDMENT AND ANY DISPUTE ARISING OUT
OF OR IN CONNECTION WITH THIS AMENDMENT, WHETHER SOUNDING IN CONTRACT, TORT, EQUITY OR OTHERWISE, SHALL BE GOVERNED BY THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICTS OF LAWS PROVISIONS OTHER THAN SECTION 5-1401 

  

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OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND DECISIONS OF THE STATE OF NEW YORK. 
  
 7. COMPLETE AGREEMENT. This Amendment sets forth the complete agreement of the parties in respect of any
amendment to any of the provisions of any Credit Document or any waiver thereof. 
  
 8. CATCHLINES AND COUNTERPARTS. The catchlines and captions herein are intended solely for convenience of reference and shall not be used to interpret or construe the provisions hereof. This Amendment
may be executed by one or more of the parties to this Amendment on any number of separate counterparts (including by telecopy), all of which taken together shall constitute but one and the same instrument. 
  
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 112004 Stock Incentive Plan

 EXHIBIT 10.27 
  
 EARLE M. JORGENSEN COMPANY 
  
 2004 STOCK INCENTIVE PLAN 

 EARLE M. JORGENSEN COMPANY 
 2004 STOCK INCENTIVE PLAN 
  
 1. ESTABLISHMENT AND PURPOSE. 
  
 The Earle M. Jorgensen
Company 2004 Stock Incentive Plan (the “Plan”) is established by Earle M. Jorgensen Company, a Delaware corporation (the “Company”), to attract and retain persons eligible to participate in the Plan; motivate Participants to
achieve long-term Company goals; and further align Participants’ interests with those of the Company’s other stockholders. The Plan is adopted as of December 17, 2004 (the “Effective Date”), subject to approval by the
Company’s stockholders within 12 months after such adoption date. Unless the Plan is discontinued earlier by the Board as provided herein, no Award shall be granted hereunder on or after the date 10 years after the Effective Date. 

 
 Certain terms used herein are defined as set forth in Section 12. 
  
 2. ADMINISTRATION; ELIGIBILITY. 
  
 The Plan shall be administered by a Committee determined and appointed by the Board;
provided, however, that, if at any time no Committee has been appointed, the Plan shall be administered by the Board. The Plan may be administered by different Committees with respect to different groups of Eligible Individuals. As
used herein, the term “Administrator” means the any of the Committees as may be designated to administer the Plan; provided, however, that if at any time no Committee has been appointed, the term “Administrator”
means the Board. 
  
 The Administrator shall have plenary authority to grant
Awards pursuant to the terms of the Plan to Eligible Individuals, except that grants of Awards to non-employee directors shall be made by the Board. Participation shall be limited to such Eligible Individuals as are selected by the Administrator.
Awards may be granted as alternatives to, in exchange or substitution for, or replacement of, other Awards outstanding under the Plan or awards outstanding under any other plan or arrangement of the Company or a Subsidiary (including a plan or
arrangement of a business or entity, all or a portion of which is acquired by the Company or a Subsidiary), except to the extent that such grant would constitute a repricing. The provisions of Awards need not be the same with respect to each
Participant. 
  
 Among other things, the Administrator shall have the authority,
subject to the terms of the Plan: 
  
 (a) to select the Eligible
Individuals to whom Awards may from time to time be granted; 
  
 (b) to determine whether and to what extent Stock Options, Stock Appreciation Rights, Stock Awards or any combination thereof are to be granted hereunder; 
  
 (c) to determine the number of shares of Stock to be covered by each Award granted hereunder; 
  
 (d) to approve forms of agreement for use under the Plan; 
  

 (e) to determine the terms and conditions, not inconsistent with the terms of this Plan, of any Award
granted hereunder (including, but not limited to, the option price, any vesting restriction or limitation, any vesting acceleration or forfeiture waiver and any right of repurchase, right of first refusal or other transfer restriction regarding any
Award and the shares of Stock relating thereto, based on such factors or criteria as the Administrator shall determine); 
  
 (f) subject to Section 9(a), to modify, amend or adjust the terms and conditions of any Award, at any time or from time to time, including, but not
limited to, with respect to (i) performance goals and targets applicable to performance-based Awards pursuant to the terms of the Plan and (ii) extension of the post-termination exercisability period of Stock Options; 
  
 (g) to determine to what extent and under what circumstances Stock and other
amounts payable with respect to an Award shall be deferred; 
  
 (h) to determine the Fair Market Value; and 
  
 (i) to
determine the type and amount of consideration to be received by the Company for any Stock Award issued under Section 6. 
  
 The Administrator shall have the authority to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall, from time to
time, deem advisable, to interpret the terms and provisions of the Plan and any Award issued under the Plan (and any agreement relating thereto) and to otherwise supervise the administration of the Plan. 
  
 Except to the extent prohibited by applicable law, the Administrator may allocate all or any
portion of its responsibilities and powers to any one or more of its members and may delegate all or any portion of its responsibilities and powers to any other person or persons selected by it. Any such allocation or delegation may be revoked by
the Administrator at any time. The Administrator may authorize any one or more of their members or any officer of the Company to execute and deliver documents on behalf of the Administrator. 
  
 Any determination made by the Administrator or pursuant to delegated authority pursuant to
the provisions of the Plan with respect to any Award shall be made in the sole discretion of the Administrator or such delegate at the time of the grant of the Award or, unless in contravention of any express term of the Plan, at any time
thereafter. All decisions made by the Administrator or any appropriately delegated officer pursuant to the provisions of the Plan shall be final and binding on all persons, including the Company and Participants. 
  
 Each Award granted under the Plan (except unconditional, unrestricted Stock Awards granted as
bonuses) shall be evidenced by an Award agreement that contains terms and conditions of such Award, which terms and conditions shall not conflict with the Plan. By accepting an Award, a Participant shall be deemed to agree that the Award shall be
subject to all of the terms and conditions in the applicable Award agreement. 
  

 2 

 3. STOCK SUBJECT TO PLAN. 
  
 Subject to adjustment as provided in this Section 3, the aggregate number of shares of Stock that may be delivered under the Plan
shall not exceed 5% of the aggregate number of shares of Stock issued by the Company upon completion of the merger pursuant to that certain Agreement and Plan of Merger and Reorganization, dated as of December 17, 2004, to which the Company is
party, and the Company’s public offering of its Stock. The shares to be delivered under the Plan consist, in whole or in part, of Stock held in treasury or authorized but unissued Stock, not reserved for any other purpose. 
  
 To the extent any shares of Stock covered by an Award are not delivered to a Participant or
beneficiary thereof because the Award expires, is forfeited, canceled or otherwise terminated, or the shares of Stock are not delivered because the Award is settled in cash or used to satisfy the applicable tax withholding obligation, such shares
shall not be deemed to have been delivered for purposes of determining the maximum number of shares of Stock available for delivery under the Plan. 
  
 Subject to adjustment as provided in this Section 3, the maximum number of shares of Stock that may be covered by Awards, in the aggregate, granted to any one
Participant during any calendar year shall be 750,000 shares. 
  
 In the event of
any Company stock dividend, stock split, combination or exchange of shares, recapitalization or other change in the capital structure of the Company, corporate separation or division of the Company (including, but not limited to, a split-up,
spin-off, split-off or distribution to Company stockholders other than a normal cash dividend), sale by the Company of all or a substantial portion of its assets (measured on either a stand-alone or consolidated basis) that results in a substantial
decrease in the value of the Company, reorganization, rights offering, partial or complete liquidation, or any other corporate transaction, Company share offering or other event involving the Company and having an effect similar to any of the
foregoing, the Administrator may make such substitution or adjustments in the (A) number and kind of shares that may be delivered under the Plan, (B) additional maximums imposed in the immediately preceding paragraph, (C) number and kind of shares
subject to outstanding Awards, (D) exercise price of outstanding Stock Options and Stock Appreciation Rights and (E) other characteristics or terms of the Awards as it may determine appropriate in its sole discretion to equitably reflect such
corporate transaction, share offering or other event; provided, however, that the number of shares subject to any Award shall always be a whole number. 
  
 4. STOCK OPTIONS. 
  
 Stock Options may be granted alone or in addition to other Awards granted under the Plan and may be of two types: Incentive Stock Options and Non-Qualified Stock Options.
Any Stock Option granted under the Plan shall be in such form as the Administrator may from time to time approve. 
  
 The Administrator shall have the authority to grant any Participant Incentive Stock Options, Non-Qualified Stock Options or both types of Stock Options. Incentive Stock
Options may be granted only to employees of the Company and its Subsidiaries. To the extent that any Stock 

  

 3 

 
Option is not designated as an Incentive Stock Option or, even if so designated, does not qualify as an Incentive Stock Option, it shall constitute a
Non-Qualified Stock Option. Incentive Stock Options may be granted only within 10 years from the date the Plan is adopted, or the date the Plan is approved by the Company’s stockholders, whichever is earlier. 
  
 An Award agreement for Stock Options shall indicate on its face whether it is intended to be
an agreement for an Incentive Stock Option or a Non-Qualified Stock Option. The grant of a Stock Option shall occur as of the date the Administrator determines. 
  

Anything in the Plan to the contrary notwithstanding, no term of the Plan relating to Incentive Stock Options shall be interpreted, amended or altered, nor shall any
discretion or authority granted under the Plan be exercised, so as to disqualify the Plan under Section 422 of the Code or, without the consent of the Optionee affected, to disqualify any Incentive Stock Option under Section 422 of the Code.

  
 To the extent that the aggregate Fair Market Value of Stock with respect to
which Incentive Stock Options are exercisable for the first time by a Participant during any calendar year (under all plans of the Company) exceeds $100,000, such Stock Options shall be treated as Non-Qualified Stock Options. 
  
 Stock Options granted under this Section 4 shall be subject to the following terms and
conditions and shall contain such additional terms and conditions as the Administrator shall deem desirable: 
  
 (a) Exercise Price. The exercise price per share of Stock purchasable under a Stock Option shall be determined by the Administrator;
provided, however, the exercise price per share shall be not less than the Fair Market Value per share on the date the Stock Option is granted, or if the Stock Option is intended to qualify as an Incentive Stock Option granted to an
individual who is a Ten Percent Holder, not less than 110% of such Fair Market Value per share. 
  
 (b) Option Term. The term of each Stock Option shall be fixed by the Administrator, but no Stock Option shall be exercisable more than 10 years (or
five years in the case of the grant of an Incentive Stock Option to an individual who is a Ten Percent Holder) after the date the Stock Option is granted. 
  
 (c) Exercisability. Except as otherwise provided herein or determined by the Administrator and set forth in the applicable Award agreement, a Stock
Option shall become exercisable with respect to 25% of the shares of Stock covered by the Stock Option in annual installments over a four year period. If the Administrator provides that any Stock Option is exercisable only in installments, the
Administrator may at any time waive such installment exercise provisions, in whole or in part, based on such factors as the Administrator may determine. In addition, the Administrator may at any time, in whole or in part, accelerate the
exercisability of any Stock Option. 
  
 (d) Method of
Exercise. Subject to the provisions of this Section 4, Stock Options may be exercised, in whole or in part, at any time during the option term by giving written 

  

 4 

 
notice of exercise to the Company specifying the number of shares of Stock subject to the Stock Option to be purchased. 
  
 The option price of any Stock Option shall be paid in full in cash (by
certified or bank check or such other instrument as the Company may accept) or, unless otherwise provided in the applicable Award agreement, by one or more of the following: (i) in the form of shares of unrestricted Stock already owned by the
Optionee for at least six months prior to the date of exercise based in any such instance on the Fair Market Value of the Stock on the date the Stock Option is exercised; (ii) by certifying ownership of shares of Stock owned by the Optionee for at
least six months prior to the date of exercise to the satisfaction of the Administrator for later delivery to the Company (at such time and in such manner as specified by the Company); (iii) unless otherwise prohibited by law for either the Company
or the Optionee, by irrevocably authorizing a third party to sell shares of Stock (or a sufficient portion of the shares) acquired upon exercise of the Stock Option and remit to the Company a sufficient portion of the sale proceeds to pay the entire
exercise price and any tax withholding resulting from such exercise; or (iv) by any combination of cash and/or any one or more of the methods specified in clauses (i), (ii) and (iii). Notwithstanding the foregoing, a form of payment shall not be
permitted to the extent it would cause the Company to recognize a compensation expense (or additional compensation expense) with respect to the Stock Option for financial reporting purposes. 
  
 If payment of the option exercise price of a Non-Qualified Stock Option is
made in whole or in part in the form of Restricted Stock, the number of shares of Stock to be received upon such exercise equal to the number of shares of Restricted Stock used for payment of the option exercise price shall be subject to the same
forfeiture restrictions to which such Restricted Stock was subject, unless otherwise determined by the Administrator. 
  
 No shares of Stock shall be issued upon exercise of a Stock Option until full payment therefor has been made. Upon exercise of a Stock Option (or a
portion thereof), the Company shall have a reasonable time to issue the Stock for which the Stock Option has been exercised, and the Optionee shall not be treated as a stockholder for any purposes whatsoever prior to such issuance. No adjustment
shall be made for cash dividends or other rights for which the record date is prior to the date such Stock is recorded as issued and transferred in the Company’s official stockholder records, except as otherwise provided herein or in the
applicable Award agreement. 
  
 (e) Transferability of Stock
Options. Except as otherwise provided in the applicable Award agreement, a Non-Qualified Stock Option (i) shall be transferable by the Optionee to a Family Member of the Optionee, provided that (A) any such transfer shall be by gift with no
consideration and (B) no subsequent transfer of such Stock Option shall be permitted other than by will or the laws of descent and distribution, and (ii) shall not otherwise be transferable except by will or the laws of descent and distribution. An
Incentive Stock Option shall not be transferable except by will or the laws of descent and distribution. A Stock Option shall be exercisable, during the Optionee’s lifetime, only by the Optionee or by the guardian or legal representative of the
Optionee, it being 

  

 5 

 
understood that the terms “holder” and “Optionee” include the guardian and legal representative of the Optionee named in the applicable
Award agreement and any person to whom the Stock Option is transferred in accordance with this Section 4(e). Notwithstanding the foregoing, references herein to the termination of an Optionee’s employment or provision of services shall
mean the termination of employment or provision of services of the person to whom the Stock Option was originally granted. 
  
 (f) Termination by Death or Disability. Unless otherwise provided in the applicable Award agreement, if an Optionee’s employment by, or
provision of services to, the Company or an Affiliate terminates by reason of death or Disability, (i) any Stock Option held by such Optionee may thereafter be exercised, to the extent exercisable at the time of such termination or on such
accelerated basis as the Administrator may determine, for a period of one year from the date of such death or Disability or until the expiration of the stated term of such Stock Option, whichever period is shorter, and (ii) each Stock Option that
remains unexercisable as of the date of such termination shall be terminated at the time of such termination. In the event of termination of employment or provision of services due to death or Disability, if an Incentive Stock Option is exercised
after the expiration of the exercise periods that apply for purposes of Section 422 of the Code, such Stock Option will thereafter be treated as a Non-Qualified Stock Option. 
  
 (g) Termination by Reason of Retirement. Unless otherwise provided in the applicable option agreement, if an
Optionee’s employment by the Company or an Affiliate terminates by reason of Retirement, any Stock Option held by such Optionee may thereafter be exercised by the Optionee, to the extent it was exercisable at the time of such Retirement, or on
such accelerated basis as the Administrator may determine, for a period of 90 days from the date of such termination of employment or until the expiration of the stated term of such Stock Option, whichever period is shorter; provided,
however, that if the Optionee dies within such period, any unexercised Stock Option held by such Optionee shall, notwithstanding the expiration of such period, continue to be exercisable to the extent to which it was exercisable at the time
of death for a period of one year from the date of such death or until the expiration of the stated term of such Stock Option, whichever period is shorter. In the event of termination of employment by reason of Retirement, if an Incentive Stock
Option is exercised after the expiration of the exercise periods that apply for purposes of Section 422 of the Code, such Stock Option will thereafter be treated as a Non-Qualified Stock Option. 
  
 (h) Other Termination. Unless otherwise provided in the applicable
Award agreement, if an Optionee’s employment by, or provision of services to, the Company or an Affiliate terminates for any reason other than death, Disability or Retirement, any Stock Option held by such Optionee shall thereupon terminate;
provided, however, that, if such termination of employment or provision of services is by the Company without Cause, such Stock Option, to the extent exercisable at the time of such termination, or on such accelerated basis as the
Administrator may determine, may be exercised for the lesser of 90 days from the date of such termination of employment or provision of services or the remainder of such Stock Option’s term and provided, further, that if the Optionee dies
within such period, any unexercised Stock Option held by such Optionee shall, 

  

 6 

 
notwithstanding the expiration of such period, continue to be exercisable to the extent to which it was exercisable at the time of death for a period of one
year from the date of such death or until the expiration of the stated term of such Stock Option, whichever period is shorter. In the event of termination of employment or provision of services for any reason other than death, Disability or
Retirement, if an Incentive Stock Option is exercised after the expiration of the exercise periods that apply for purposes of Section 422 of the Code, such Stock Option will thereafter be treated as a Non-Qualified Stock Option. 
  
 (i) Exception to Termination. Notwithstanding anything in this Plan
to the contrary, if an Optionee’s employment by, or provision of services to, the Company or an Affiliate ceases as a result of a transfer of such Optionee from the Company to an Affiliate, or from an Affiliate to the Company, such transfer
will not be a termination of employment or provision of services for purposes of this Plan, unless expressly determined otherwise by the Administrator. A termination of employment or provision of services shall occur for an Optionee who is employed
by, or provides services to, an Affiliate of the Company if the Affiliate shall cease to be an Affiliate and the Optionee shall not immediately thereafter be employed by, or provide services to, the Company or an Affiliate. 
  
 5. STOCK APPRECIATION RIGHTS. 
  
 Stock Appreciation Rights may be granted either on a stand-alone basis or in conjunction
with all or part of any Stock Option granted under the Plan. In the case of a Non-Qualified Stock Option, such rights may be granted either at or after the time of grant of such Stock Option. In the case of an Incentive Stock Option, such rights may
be granted only at the time of grant of such Stock Option. A Stock Appreciation Right shall terminate and no longer be exercisable as determined by the Administrator, or, if granted in conjunction with all or part of any Stock Option, upon the
termination or exercise of the related Stock Option. 
  
 A Stock Appreciation
Right may be exercised by a Participant as determined by the Administrator in accordance with this Section 5, and, if granted in conjunction with all or part of any Stock Option, by surrendering the applicable portion of the related Stock
Option in accordance with procedures established by the Administrator. Upon such exercise and surrender, the Participant shall be entitled to receive an amount determined in the manner prescribed in this Section 5. Stock Options that have
been so surrendered, if any, shall no longer be exercisable to the extent the related Stock Appreciation Rights have been exercised. 
  
 Stock Appreciation Rights shall be subject to such terms and conditions as shall be determined by the Administrator, including the following: 
  
 (i) Stock Appreciation Rights granted on a stand-alone basis shall be
exercisable only at such time or times and to such extent as determined by the Administrator. Stock Appreciation Rights granted in conjunction with all or part of any Stock Option shall be exercisable only at the time or times and to the extent that
the Stock Options to which they relate are 

  

 7 

	 	 
exercisable in accordance with the provisions of Section 4 and this Section 5. 

  
 (ii) Upon the exercise of a Stock Appreciation Right, a Participant shall be
entitled to receive an amount in cash, shares of Stock or both, which in the aggregate are equal in value to the excess of the Fair Market Value of one share of Stock over (i) such value per share of Stock as shall be determined by the Administrator
at the time of grant (if the Stock Appreciation Right is granted on a stand-alone basis), or (ii) the exercise price per share specified in the related Stock Option (if the Stock Appreciation Right is granted in conjunction with all or part of any
Stock Option), multiplied by the number of shares in respect of which the Stock Appreciation Right shall have been exercised, with the Administrator having the right to determine the form of payment. 
  
 (iii) A Stock Appreciation Right shall be transferable only to, and shall be
exercisable only by, such persons permitted in accordance with Section 4(e). 
  
 6. STOCK AWARDS OTHER THAN OPTIONS AND STOCK APPRECIATION RIGHTS. 
  
 Stock Awards may be directly issued under the Plan (without any intervening Stock Options), subject to such terms, conditions, performance requirements, restrictions, forfeiture provisions, contingencies and
limitations as the Administrator shall determine. Stock Awards may be issued that are fully and immediately vested upon issuance or that vest in one or more installments over the Participant’s period of employment or other service to the
Company or upon the attainment of specified performance objectives, or the Company may issue Stock Awards that entitle the Participant to receive a specified number of vested shares of Stock (or Stock units) upon the attainment of one or more
performance goals or service requirements established by the Administrator. 
  
 Shares (or units) representing a Stock Award shall be evidenced in such manner as the Administrator may deem appropriate, including book-entry registration or issuance of one or more certificates (which may bear appropriate legends
referring to the terms, conditions and restrictions applicable to such Award). The Administrator may require that any such certificates be held in custody by the Company until any restrictions thereon shall have lapsed and that the Participant
deliver a stock power, endorsed in blank, relating to the Stock covered by such Award. 
  
 A Stock Award may be issued in exchange for any consideration which the Administrator may deem appropriate in each individual instance, including, without limitation: 
  
 (i) cash or cash equivalents; 
  
 (ii) past services rendered to the Company or any Affiliate; or 
  

 8 

 (iii) future services to be rendered to the Company or any Affiliate (provided that, in such case, the
par value of the stock subject to such Stock Award shall be paid in cash or cash equivalents, unless the Administrator provides otherwise). 
  
 A Stock Award that is subject to restrictions on transfer and/or forfeiture provisions may be referred to as an award of “Restricted Stock” or “Restricted
Stock Units.” 
  
 7. PERFORMANCE AWARDS. 
  
 (a) Performance Conditions. The right of a Participant to exercise or
receive a grant or settlement of any Award, and its timing, may be subject to performance conditions specified by the Administrator. The Administrator may use business criteria and other measures of performance it deems appropriate in establishing
any performance conditions, and may exercise its discretion to reduce or increase amounts payable under any Award subject to performance conditions, except as limited under Sections 7(b) and 7(c) hereof in the case of a Performance
Award intended to qualify under Section 162(m) of the Code. 
  
 (b) Performance Awards Granted to Designated Covered Employees. If the Administrator determines that a Performance Award to be granted to a person the Administrator regards as likely to be a Covered Employee should qualify as
“performance-based compensation” for purposes of Section 162(m) of the Code, the grant and/or settlement of such Performance Award shall be contingent upon achievement of pre-established performance goals and other terms set forth in this
Section 7(b). 
  
 (i) Performance Goals Generally.
The performance goals for such Performance Awards shall consist of one or more business criteria and a targeted level or levels of performance with respect to such criteria, as specified by the Administrator consistent with this Section 7(b).
Performance goals shall be objective and shall otherwise meet the requirements of Section 162(m) of the Code, including the requirement that the level or levels of performance targeted by the Administrator result in the performance goals being
“substantially uncertain.” At the time the performance goals are established, the Administrator may determine that more than one performance goal must be achieved as a condition to settlement of such Performance Awards. Performance goals
may differ for Performance Awards granted to any one Participant or to different Participants. 
  
 (ii) Business Criteria. One or more of the following business criteria for the Company, on a consolidated basis, and/or for specified Subsidiaries
or business units of the Company (except with respect to the total stockholder return and earnings per share criteria), shall be used 

  

 9 

	 	 
exclusively by the Administrator in establishing performance goals for such Performance Awards: (1) total stockholder return; (2) such total stockholder
return as compared to total return (on a comparable basis) of a publicly available index; (3) net income; (4) pre-tax earnings; (5) EBITDA; (6) pre-tax operating earnings after interest expense and before bonuses and extraordinary or special items;
(7) operating margin; (8) earnings per share; (9) return on equity; (10) return on capital; (11) return on investment; (12) operating income, excluding the effect of charges for acquired in-process technology and before payment of executive bonuses;
(13) earnings per share; (14) working capital; and (15) total revenues. 

  
 (iii) Performance Period: Timing For Establishing Performance Goals. Achievement of performance goals in respect of such Performance Awards shall be measured over such periods as may be specified by the
Administrator. Performance goals shall be established on or before the dates that are required or permitted for “performance-based compensation” under Section 162(m) of the Code. 
  
 (iv) Settlement of Performance Awards; Other Terms. Settlement of
Performance Awards may be in cash or Stock, or other Awards, or other property, in the discretion of the Administrator. The Administrator may, in its discretion, reduce the amount of a settlement otherwise to be made in connection with such
Performance Awards, but may not exercise discretion to increase any such amount payable in respect of a Performance Award subject to this Section 7(b). The Administrator shall specify the circumstances in which such Performance Awards shall
be forfeited or paid in the event of a termination of employment or a Change in Control prior to the end of a performance period or settlement of Performance Awards, and other terms relating to such Performance Awards. 
  
 (c) Written Determinations. All determinations by the Administrator
as to the establishment of performance goals and the potential Performance Awards related to such performance goals and as to the achievement of performance goals relating to such Awards, shall be made in writing in the case of any Award intended to
qualify under Section 162(m) of the Code. The Administrator may not delegate any responsibility relating to such Performance Awards. 
  
 8. CHANGE IN CONTROL PROVISIONS. 
  
 (a) Impact of Event. Notwithstanding any other provision of the Plan to the contrary, except to the extent otherwise provided in an agreement
granting an Award, in the event of a Change in Control: 
  
 (i)
The Administrator shall have the discretion to accelerate the vesting of any Stock Options and Stock Appreciation Rights outstanding, but not 

  

 10 

 
fully vested and exercisable as of the date of such Change in Control, to the extent it deems appropriate; 
  
 (ii) The Administrator shall have the discretion to remove all restrictions
applicable to any outstanding Stock Awards, the effect of which shall be that the Stock relating to such Awards shall become fully vested and transferable; 
  
 (iii) The Administrator shall have the discretion to terminate any outstanding repurchase rights of the Company with respect to any outstanding Awards;
and 
  
 (iv) Outstanding Awards shall be subject to any agreement
of merger or reorganization that effects such Change in Control, which agreement shall provide for: 
  
 (A) The continuation of the outstanding Awards by the Company, if the Company is a surviving corporation; 
  
 (B) The assumption of the outstanding Awards by the surviving corporation
or its parent or subsidiary; 
  
 (C) The substitution by the
surviving corporation or its parent or subsidiary of equivalent awards for the outstanding Awards; or 
  
 (D) Settlement of each share of Stock subject to an outstanding Award for the Change in Control Price (less, to the extent applicable, the per share
exercise price), or, if the per share exercise price equals or exceeds the Change in Control Price, the outstanding Award shall terminate and be canceled. 
  
 (v) In the absence of any agreement of merger or reorganization effecting such Change in Control, each share of Stock subject to an outstanding Award
shall be settled for the Change in Control Price (less, to the extent applicable, the per share exercise price), or, if the per share exercise price equals or exceeds the Change in Control Price, the outstanding Award shall terminate and be
canceled. 
  
 (b) Definition of Change in Control. For
purposes of the Plan, a “Change in Control” shall mean the happening of any of the following events: 
  
 (i) An acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act), excluding,
however, (1) the Company or any of its Subsidiaries, (2) any employee benefit plan (or related trust) of the Company or any of its Subsidiaries, (3) any underwriter temporarily holding securities pursuant to an offering of such 

  

 11 

 
securities, (4) the Kelso Entities, or (5) the Kelso Affiliates (a “Person”), of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 50% or more of either (a) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (b) the combined voting power of the then outstanding voting securities of the
Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); excluding, however, the following: (w) any acquisition directly from the Company, other than an acquisition by
virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Company, (x) any acquisition by the Company, (y) any acquisition by any employee benefit plan (or related trust) sponsored
or maintained by the Company or any corporation controlled by the Company, or (z) any acquisition by any Person pursuant to a transaction which complies with clauses (1), (2) and (3) of subsection (iii) of this Section 8(b); or 
  
 (ii) Within any period of 24 consecutive months, a change in the composition
of the Board such that the individuals who, immediately prior to such period, constituted the Board (such Board shall be hereinafter referred to as the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board;
provided, however, that for purposes of this Section 8(b), any individual who becomes a member of the Board during such period, whose election, or nomination for election by the Company’s stockholders, was approved by a
vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the
Incumbent Board; but, provided further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest with respect to the election or removal of directors or
other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be so considered as a member of the Incumbent Board; or 
  
 (iii) The approval by the stockholders of the Company of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company (“Corporate Transaction”); excluding, however, such a Corporate Transaction pursuant to which (1) all or substantially all of the individuals and entities
who are the beneficial owners, respectively, of the outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 50% of,
respectively, the outstanding shares of common stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of 

  

 12 

 
the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns the
Company or all or substantially all of the Company’s assets, either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the outstanding
Company Common Stock and Outstanding Company Voting Securities, as the case may be, (2) no Person will beneficially own, directly or indirectly, more than 50% of, respectively, the outstanding shares of common stock of the corporation resulting from
such Corporate Transaction or the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors, except to the extent that such ownership existed with respect to the Company
prior to the Corporate Transaction, and (3) individuals who were members of the Board immediately prior to the approval by the stockholders of the Corporation of such Corporate Transaction will constitute at least a majority of the members of the
board of directors of the corporation resulting from such Corporate Transaction; or 
  
 (iv) The approval by the stockholders of the Company of a complete liquidation or dissolution of the Company, other than to a corporation pursuant to a transaction which would comply with clauses (1), (2) and (3) of
subsection (iii) of this Section 8(b), assuming for this purpose that such transaction were a Corporate Transaction. 
  
 (c) Change in Control Price. For purposes of the Plan, “Change in Control Price” means the highest of (i) the highest reported sales
price, regular way, of a share of Stock in any transaction reported on the New York Stock Exchange Composite Tape or other national securities exchange or market on which such shares are listed, as applicable, during the 60-day period prior to and
including the date of a Change in Control, (ii) if the Change in Control is the result of a tender or exchange offer, merger or other corporate transaction, the highest price per share of Stock paid in such tender or exchange offer, merger or other
corporate transaction, and (iii) the Fair Market Value of a share of Stock upon the Change in Control. To the extent that the consideration paid in any such transaction described above consists all or in part of securities or other non-cash
consideration, the value of such securities or other non-cash consideration shall be determined in the sole discretion of the Administrator. The Participant shall receive the same form of consideration pursuant to the transaction as holders of
Stock, subject to the same restrictions and limitations and indemnification obligations as the holders of Stock, and will execute any and all documents required by the Administrator to evidence the same. 
  
 9. MISCELLANEOUS. 
  
 (a) Amendment. The Board may amend, alter, or discontinue the Plan,
but no amendment, alteration or discontinuation shall be made that would adversely affect the rights of a Participant under an Award theretofore granted without the Participant’s 

  

 13 

 
consent, except such an amendment (i) made to avoid an expense charge to the Company or an Affiliate, or (ii) made to permit the Company or an Affiliate a
deduction under the Code. No such amendment shall be made without the approval of the Company’s stockholders to the extent such approval is required by law, agreement or the rules of any stock exchange or market on which the Stock is listed.

  
 The Administrator may amend the terms of any Stock Option or
other Award theretofore granted, prospectively or retroactively, but no such amendment shall adversely affect the rights of the holder thereof without the holder’s consent. 
  
 (b) Unfunded Status of Plan. It is intended that this Plan be an “unfunded” plan for incentive and deferred
compensation. The Administrator may authorize the creation of trusts or other arrangements to meet the obligations created under this Plan to deliver Stock or make payments, provided that, unless the Administrator otherwise determines, the existence
of such trusts or other arrangements is consistent with the “unfunded” status of this Plan. 
  
 (c) General Provisions. 
  
 (i) The Administrator may require each person purchasing or receiving shares pursuant to an Award to represent to and agree with the Company in writing
that such person is acquiring the shares without a view to the distribution thereof. The certificates for such shares may include any legend that the Administrator deems appropriate to reflect any restrictions on transfer. 
  
 All certificates for shares of Stock or other securities delivered under the
Plan shall be subject to such stock transfer orders and other restrictions as the Administrator may deem advisable under the rules, regulations and other requirements of the Commission, any stock exchange or market on which the Stock is then listed
and any applicable Federal or state securities law, and the Administrator may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 
  
 (ii) Nothing contained in the Plan shall prevent the Company or any
Affiliate from adopting other or additional compensation arrangements for its employees. 
  
 (iii) The adoption of the Plan shall not confer upon any employee, director, consultant or advisor any right to continued employment, directorship or service, nor shall it interfere in any way with the right of the
Company or any Subsidiary or Affiliate to terminate the employment or service of any employee, consultant or advisor at any time. 
  
 (iv) No later than the date as of which an amount first becomes includible in the gross income of the Participant for Federal income tax purposes with
respect to any Award under the Plan, the Participant shall pay to the 

  

 14 

 
Company, or make arrangements satisfactory to the Company regarding the payment of, any Federal, state, local or foreign taxes of any kind required by law to
be withheld with respect to such amount. Unless otherwise determined by the Administrator, withholding obligations may be settled with Stock, including Stock that is part of the Award that gives rise to the withholding requirement. The obligations
of the Company under the Plan shall be conditional on such payment or arrangements, and the Company, its Subsidiaries and its Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due to
the Participant. The Administrator may establish such procedures as it deems appropriate for the settlement of withholding obligations with Stock. 
  
 (v) The Administrator shall establish such procedures as it deems appropriate for a Participant to designate a beneficiary to whom any amounts payable in
the event of the Participant’s death are to be paid. 
  
 (vi) Subject to applicable law, any amounts owed to the Company or an Affiliate by the Participant of whatever nature may be offset by the Company from the value of any shares of Stock, cash or other thing of value under this Plan or an
agreement to be transferred to the Participant, and no shares of Stock, cash or other thing of value under this Plan or an agreement shall be transferred unless and until all disputes between the Company or any Affiliate and the Participant have
been fully and finally resolved and the Participant has waived all claims to such against the Company or an Affiliate. 
  
 (vii) The grant of an Award shall in no way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business
structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
  
 (viii) If any payment or right accruing to a Participant under this Plan (without the application of this Section (9)(c)(viii)), either
alone or together with other payments or rights accruing to the Participant from the Company or an Affiliate (“Total Payments”) would constitute a “parachute payment” (as defined in Section 280G of the Code and regulations
thereunder), such payment or right shall be reduced to the largest amount or greatest right that will result in no portion of the amount payable or right accruing under the Plan being subject to an excise tax under Section 4999 of the Code or being
disallowed as a deduction under Section 280G of the Code; provided, however, that the foregoing shall not apply to the extent provided otherwise in an Award agreement or in the event the Participant is party to an agreement with the Company or an
Affiliate that explicitly provides for an alternate treatment of payments or rights that would constitute “parachute payments.” The determination of whether any 

  

 15 

 
reduction in the rights or payments under the Plan is to apply shall be made by the Administrator in good faith after consultation with the Participant, and
such determination shall be conclusive and binding on the Participant. The Participant shall cooperate in good faith with the Administrator in making such determination and providing the necessary information for this purpose. The foregoing
provisions of this Section 9(c)(viii) shall apply with respect to any person only if, after reduction for any applicable Federal excise tax imposed by Section 4999 of the Code and Federal income tax imposed by the Code, the Total Payments
accruing to such person would be less than the amount of the Total Payments as reduced, if applicable, under the foregoing provisions of this Plan and after reduction for only Federal income taxes. 
  
 (ix) To the extent that the Administrator determines that the restrictions
imposed by the Plan preclude the achievement of the material purposes of the Awards in jurisdictions outside the United States, the Administrator in its discretion may modify those restrictions as it determines to be necessary or appropriate to
conform to applicable requirements or practices of jurisdictions outside of the United States. 
  
 (x) The headings contained in this Plan are for reference purposes only and shall not affect the meaning or interpretation of this Plan. 
  
 (xi) If any provision of this Plan shall for any reason be held to be
invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision hereby, and this Plan shall be construed as if such invalid or unenforceable provision were omitted. 
  
 (xii) This Plan shall inure to the benefit of and be binding upon each
successor and assign of the Company. All obligations imposed upon a Participant, and all rights granted to the Company hereunder, shall be binding upon the Participant’s heirs, legal representatives and successors. 
  
 (xiii) This Plan and each agreement granting an Award constitute the entire
agreement with respect to the subject matter hereof and thereof, provided that in the event of any inconsistency between this Plan and such agreement, the terms and conditions of the Plan shall control. 
  
 (xiv) In the event there is an effective registration statement under the
Securities Act of 1933, as amended, pursuant to which shares of Stock shall be offered for sale in an underwritten offering, a Participant shall not, during the period requested by the underwriters managing the registered public offering, effect any
public sale or distribution of shares of Stock received, directly or indirectly, as an Award or pursuant to the exercise or settlement of an Award. 
  

 16 

 (xv) Except as may be required by Section 260.140.46 of the California Code of Regulations or other
applicable laws, none of the Company, an Affiliate or the Administrator shall have any duty or obligation to disclose affirmatively to a record or beneficial holder of Stock or an Award, and such holder shall have no right to be advised of, any
material information regarding the Company or any Affiliate at any time prior to, upon or in connection with receipt or the exercise of an Award or the Company’s purchase of Stock or an Award from such holder in accordance with the terms
hereof. 
  
 (xvi) This Plan, and all Awards, agreements and
actions hereunder, shall be governed by, and construed in accordance with, the laws of the State of Delaware (other than its law respecting choice of law). 
  
 10. INDEMNIFICATION. 
  
 Except for such individual’s own willful misconduct or as expressly provided by law, each person who is or shall have been a member of the Committee or of the Board
or an officer of the Company shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such person in connection with or resulting from any claim,
action, suit, or proceeding to which such person may be made a party or in which such person may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by such person in settlement
thereof, with the Company’s approval, or paid by such person in satisfaction of any judgment in any such action, suit, or proceeding against such person, provided such person shall give the Company an opportunity, at its own expense, to handle
and defend the same before such person undertakes to handle and defend it on such person’s own behalf. The foregoing right of indemnification shall not be exclusive and shall be independent of any other rights of indemnification to which such
persons may be entitled under the Company’s Amended and Restated Certificate of Incorporation or Amended and Restated By-laws, by contract, as a matter of law, or otherwise. 
  
 11. DEFERRAL OF AWARDS. 
  
 To the extent deferral of Awards may result in deferral of taxation to the Participant under the Code and to the extent permitted by law, the Administrator (in its sole
discretion) may permit a Participant to: 
  
 (a) have cash that
otherwise would be paid to such Participant as a result of the exercise of a Stock Appreciation Right or the settlement of a Stock Award credited to a deferred compensation account established for such Participant by the Administrator as an entry on
the Company’s books; 
  

 17 

 (b) have Stock that otherwise would be delivered to such Participant as a result of the exercise of a
Stock Option or a Stock Appreciation Right converted into an equal number of Stock units; or 
  
 (c) have Stock that otherwise would be delivered to such Participant as a result of the exercise of a Stock Option or Stock Appreciation Right or the settlement of a Stock Award converted into amounts credited to a
deferred compensation account established for such Participant by the Administrator as an entry on the Company’s books. Such amounts shall be determined by reference to the Fair Market Value of the Stock as of the date on which they otherwise
would have been delivered to such Participant. 
  
 A deferred compensation account
established under this Section 11 may be credited with interest or other forms of investment return, as determined by the Administrator and permitted by the Code and other applicable law. A Participant for whom such an account is established
shall have no rights other than those of a general creditor of the Company. Such an account shall represent an unfunded and unsecured obligation of the Company and shall be subject to the terms and conditions of the applicable agreement between such
Participant and the Company. If the deferral or conversion of Awards is permitted or required, the Administrator (in its sole discretion) may establish rules, procedures and forms pertaining to such Awards, including (without limitation) the
settlement of deferred compensation accounts established under this Section 11. 
  
 12. DEFINITIONS. 
  
 For purposes of this Plan, the
following terms are defined as set forth below: 
  
 (a)
“Act” means the Securities Exchange Act of 1934, as amended. 
  
 (b) “Affiliate” means a corporation or other entity controlled by the Company and designated by the Administrator as such. 
  
 (c) “Award” means a Stock Appreciation Right, Stock Option, or Stock Award. 
  
 (d) “Board” means the Board of Directors of the Company.

  
 (e) “Cause” means (i) the conviction of the
Participant for committing a felony under Federal law or the law of the state in which such action occurred, (ii) dishonesty in the course of fulfilling the Participant’s duties as an employee or director of, or consultant or advisor to, the
Company or (iii) willful and deliberate failure on the part of the Participant to perform such duties in any material respect (other than due to Disability). Notwithstanding the foregoing, if the Participant and the Company or an Affiliate have
entered into an employment or services agreement which defines the term “Cause” (or a similar term), such definition shall govern for purposes of determining whether such Participant has been terminated for Cause for purposes of this Plan.
The determination of Cause shall be made by the Administrator, in its sole discretion. 
  

 18 

 (f) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
any successor thereto. 
  
 (g) “Commission”
means the Securities and Exchange Commission or any successor agency. 
  
 (h) “Committee” means one or more committees of directors appointed by the Board to administer this Plan. Insofar as the Committee is responsible for granting Awards to Participants hereunder, it shall consist solely of two
or more directors, each of whom is a “non-employee director” within the meaning of Rule 16b-3 under the Act, an “outside director” under Section 162(m) of the Code and an “independent director” as defined by the listing
standards of the New York Stock Exchange or other national securities exchange or market on which such shares are listed, as applicable. 
  
 (i) “Covered Employee” means a person who is a “covered employee” within the meaning of Section 162(m) of the Code. 

 
 (j) “Disability” means mental or physical illness that
entitles the Participant to receive benefits under the long-term disability plan of the Company or an Affiliate, or if the Participant is not covered by such a plan or the Participant is not an employee of the Company or an Affiliate, a mental or
physical illness that renders a Participant totally and permanently incapable of performing the Participant’s duties for the Company or an Affiliate; provided, however, that a Disability shall not qualify under this Plan if it is
the result of (i) a willfully self-inflicted injury or willfully self-induced sickness; or (ii) an injury or disease contracted, suffered or incurred while participating in a criminal offense. Notwithstanding the foregoing, if the Participant and
the Company or an Affiliate have entered into an employment or services agreement which defines the term “Disability” (or a similar term), such definition shall govern for purposes of determining whether such Participant suffers a
Disability for purposes of this Plan. The determination of Disability shall be made by the Administrator, in its sole discretion. The determination of Disability for purposes of this Plan shall not be construed to be an admission of disability for
any other purpose. 
  
 (k) “Eligible Individual”
means any officer, employee or non-employee director of the Company or an Affiliate, or any consultant or advisor providing services to the Company or an Affiliate. 
  
 (l) “Fair Market Value” means, as of any given date, (i) the closing sales price per share of the Stock on
the New York Stock Exchange (or the principal stock exchange or market on which the Stock is then traded) on the date as of which such value is being determined or, if no sale of Stock is reported on such date, the last previous day on which a sale
was reported, or (ii) if the Stock is not listed on the New York Stock Exchange or other principal stock exchange or market, the fair market value of a share of Stock as determined by the Committee, or under procedures established by the Committee,
in good faith. 
  

 19 

 (m) “Family Member” means any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law of a Participant (including adoptive relationships); any person sharing the Participant’s
household (other than a tenant or employee); any trust in which the Participant and any of these persons have all of the beneficial interest; any corporation, partnership, limited liability company or other entity in which the Participant and any of
these other persons are the direct and beneficial owners of all of the equity interests (provided the Participant and these other persons agree in writing to remain the direct and beneficial owners of all such equity interests); and any personal
representative of the Participant upon the Participant’s death for purposes of administration of the Participant’s estate or upon the Participant’s incompetency for purposes of the protection and management of the assets of the
Participant. 
  
 (n) “Incentive Stock Option”
means any Stock Option intended to be and designated as an “incentive stock option” within the meaning of Section 422 of the Code. 
  
 (o) “Kelso Entities” means any of Kelso Investment Associates, LP, Kelso Investment Associates III-Earle M. Jorgensen, L.P., Kelso
Investment Associates IV, L.P. or Kelso Equity Partners II, L.P. 
  
 (p) “Kelso Affiliates” means (i) any corporation, partnership (limited or otherwise), limited liability company or other entity controlling, controlled by, or under common control with, any of the Kelso Entities, or (ii)
any director, officer or beneficial owner (10% or more of the issued and outstanding equity securities) of any of the Kelso Entities or any of the entities described in Section 12(q)(i) immediately above. 
  
 (q) “Non-Qualified Stock Option” means any Stock Option
that is not an Incentive Stock Option. 
  
 (r)
“Optionee” means a person who holds a Stock Option. 
  
 (s) “Participant” means a person granted an Award. 
  
 (t) “Performance Award” means a right, granted to a Participant under Section 7, to receive Awards based upon performance criteria specified by the Administrator. 
  
 (u) “Retirement” means termination of a
Participant’s employment on or after the date the Participant attains age 65. 
  
 (v) “Stock” means Common Stock, par value $0.001 per share, of the Company. 
  
 (w) “Stock Appreciation Right” means a right granted under Section 5. 
  
 (x) “Stock Award” means an Award, other than a Stock Option
or Stock Appreciation Right, made in stock or denominated in shares of, or valued in whole or in part by reference to, Stock. 
  

 20 

 (y) “Stock Option” means an option granted under Section 4. 
  
 (z) “Subsidiary” means any company during any period in
which it is a “subsidiary corporation” (as such term is defined in Section 424(f) of the Code) with respect to the Company. 
  
 (aa)“Ten Percent Holder” means an individual who owns, or is deemed to own, stock possessing more than 10% of the total combined voting
power of all classes of stock of the Company or of any parent or subsidiary corporation of the Company, determined pursuant to the rules applicable to Section 422(b)(6) of the Code. 
  
 In addition, certain other terms used herein have the definitions given to them in the first places in which they are used. 
  

 21

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