Document:

Form of Amendment Option Agreement

 Exhibit 10.3 
  
 EARLE M. JORGENSEN COMPANY 
  
 STOCK OPTION AMENDMENT 
  
 THIS STOCK OPTION AMENDMENT (this “Amendment”), dated and effective as of January 1, 2005 (“Amendment Date”), is
between Earle M. Jorgensen Company, a Delaware corporation (the “Company”), and                      (the
“Participant”), relating to stock options granted under the Earle M. Jorgensen Holding Company, Inc. Option Plan, dated January 30, 1997, as amended and assumed by the Company (the “Plan”). Capitalized terms
used in this Amendment without definition shall have the meaning ascribed to such terms in the Plan. 
  
 WHEREAS, Earle M. Jorgensen Holding Company, Inc. (“Holding”) granted options to the Participant on
                                     (the “Outstanding
Options”) pursuant to the Plan, ; 
  
 WHEREAS, by letter
agreement dated December 22, 2004, Holding and the Participant agreed to adjust the exercise price and the number of Outstanding Options in order to conform such terms with certain changes in the appraisal methodology for determining the fair
market value of Holding’s common stock that were required in connection with the settlement of litigation between Holding and the United States Department of Labor; 
  
 WHEREAS, on April 20, 2005, the Company assumed and amended certain terms of the Outstanding Options, pursuant to an
agreement with the Participant, dated as of December 22, 2004; and 
  
 WHEREAS, the Company and Participant desire to amend and restate the Outstanding Options effective as of the Amendment Date to comply with Section 409A of the Internal Revenue Code (the “Code”). 
  
 NOW THEREFORE, in consideration of the promises and subject to the terms and
conditions set forth herein and in the Plan, the parties hereto agree as follows: 
  
 1. Amendment of Grant; Option Price. Effective as of the Amendment Date and subject to the terms hereof, the Company hereby evidences and confirms the amendment and restatement of the grant to Participant of stock options in
the discretion of the Company entitling the Participant to receive from the Company              shares of the Company’s common stock, par value $0.001 per share (the
“Common Stock”), exercisable only as provided in Sections 2, 3 and 4 below (as herein amended and restated, the “Options”). The Options shall have an exercise price of
$             per share (the “Option Price”). The Options, as amended and restated pursuant to this Amendment, are subject in all respects to the terms of the Plan,
all of which terms are made a part of and incorporated into this Amendment. 
  
 2. Exercisability. The Options will become exercisable in accordance with the following provisions of this Section 2. 
  
 (a) Options. Except as otherwise provided in this Amendment, the Options shall be exercisable, if at all, on the earlier of (i) the date of a
Company Sale Event (as hereinafter defined) or (ii) March 30, 2007 (the “Exercise Date”). 

 (b) Expiration Date. Unless an earlier exercise and settlement date occurs in accordance with
Section 2, 3 or 4, the Options shall terminate at 11:59 p.m., Pacific Standard Time, on March 30, 2007. 
  
 3. Method of Exercise and Settlement Upon Company Sale Event. 
  
 (a) Company Sale Event. For purposes hereof, a “Company Sale Event” shall occur or shall have occurred only if any of the
following events occurs: 
  
 (i) A change in
the ownership of the Company. A change in ownership of the Company shall occur on the date that any one person, or more than one person acting as a “Group” (as defined under Section 409A of the Code), acquires ownership of
stock of the Company that, together with stock held by such person or Group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company; provided, however, that, if any one person or more than one
person acting as a Group, is considered to own, at the effective time of the Company Sale Event, more than 50% of the total fair market value or total voting power of the stock of the Company, the acquisition of additional stock by the same person
or persons is not considered to cause a change in the ownership of the Company. 
  
 (ii) A change in the effective control of the Company. A change in the effective control of the Company occurs on the date that:

  
 (A) any one person, or more than one person
acting as a Group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing 35% or more of the total voting power of the stock of
the Company; or 
  
 (B) a majority of the members
of the Company’s board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s board of directors prior to the date of the appointment or
election; provided, however, that, if one person, or more than one acting as a Group, is considered to effectively control the Company, the acquisition of additional control of the Company by the same person or persons is not considered a change in
the effective control of the Company. 
  
 (iii)
A change in the ownership of a substantial portion of the Company’s assets. A change in the ownership of a substantial portion of the Company’s assets occurs on the date that any one person, or more than one person acting as a
Group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total Gross Fair Market Value (as defined in Section 3(b) hereof) equal
to or more than 40% of the total Gross Fair Market Value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that, a transfer of assets 
  
 by the Company is not treated as a change in the ownership of such assets if the assets are
transferred to: 
  
 (A) a shareholder of the
Company (immediately before the asset transfer) in exchange for or with respect to its stock; 

 (B) an entity, 50% or more of the total value or voting power of which is owned, directly
or indirectly, by the Company; 
  
 (C) a person,
or more than one person acting as a Group, that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding stock of the Company; or 
  
 (D) an entity, at least 50% of the total value or voting power of which is owned, directly or indirectly, by
a person described in Section 3(a)(iii)(C) hereof). 
  
 (b)
Definitions. For purposes of Section 3(a) above, (i) “Gross Fair Market Value” means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities
associated with such assets, and (ii) stock ownership shall be determined under Section 409A of the Code. 
  
 (c) Method of Exercise. The Options shall be automatically exercised, without any action on the part of the holder, as of the date of a Company
Sale Event. 
  
 (d) Settlement. Notwithstanding
Section 7 of the Plan or anything in the Plan to the contrary, in the event that the Options are automatically exercised upon the occurrence of a Company Sale Event, the Participant shall receive a cash payment equal to (i) the excess of
the per-share Company Sale Consideration (as hereinafter defined) over the per-share Option Price, multiplied by (ii) the number of shares of Common Stock subject to the Options. Such cash payment shall be made to the Participant in a single
lump sum on the date of the Company Sale Event. Such cash payment shall be in full satisfaction of the Company’s obligations under the Options and the Participant shall not be entitled to receive any shares of Common Stock in connection with
the exercise of the Options upon the occurrence of a Company Sale Event. For purposes hereof, the per-share “Company Sale Consideration” equals (1) in the case of a Company Sale Event in connection with which Common Stock may be
purchased solely for cash, the amount of cash payable per share of Common Stock, (2) in the case of a Company Sale Event not described in Section 3(d)(1) above, the fair market value of a share of Common Stock on the date of the Company
Sale Event. 
  
 4. Method of Exercise and Settlement on March 30,
2007. 
  
 (a) Method of Exercise. In the event
that a Company Sale Event has not previously occurred, the Participant may exercise the Options on March 30, 2007 (the “Exercise Date”) by written notice of exercise given to the Committee and payment in full of the exercise
price on or prior to the Exercise Date. 
  
 (b) Payment of
Option Price. The Option Price must be paid in full on or prior to the Exercise Date (i) in cash or cash equivalents, including an assignment of the right to receive cash proceeds from the sale of any Common Stock subject to the Option,
(ii) in already owned shares of Common Stock having an aggregate Fair Market Value on the Exercise Date equal to such Option Price, (iii) in a combination of cash and Common Stock or (iv) in accordance with such procedures or in such
other form as the Committee shall from time to time determine. 
  
 (c) Settlement. Except as otherwise set forth below, following receipt of a written exercise notice and payment in full of the Option Price of the Options exercised in accordance with 

 
the terms of this Amendment, on the Exercise Date (or as soon as administratively feasible but in no event later than December 31, 2007), the Company
shall deliver to the Participant a certificate or certificates representing the shares of Common Stock acquired upon the exercise thereof, registered in the name of the Participant, provided that, if the Company, in its sole discretion, shall
determine that, under applicable securities laws, any certificates issued under this Section 4 must bear a legend restricting the transfer of such Common Stock, such certificates shall bear the appropriate legend. Notwithstanding the foregoing,
following receipt of notice from the Participant of written notice of exercise of any Options hereunder, the Company may, on the Exercise Date and in lieu of accepting payment of the Option Price therefor and delivering the number of shares for
which the options are being exercised, either (i) pay the Participant an amount in cash, in lieu of permitting the Participant to exercise such options, or (ii) deliver to the Participant a lesser number of shares of Common Stock having an
aggregate Fair Market Value on the Exercise Date, in any such case, equal to the excess, if any, of the aggregate Fair Market Value of the shares of Common Stock as to which the Options are being exercised over the aggregate Option Price for such
shares. 
  
 5. Payment of Withholding Taxes. If the Company is
obligated to withhold from payment to the Participant an amount on account of any tax imposed as a result of the exercise or other settlement of the Options, the Participant shall be required to pay such amount to the Company, as provided in the
Plan. The Participant acknowledges and agrees that he or she is solely responsible for the tax consequences associated with the grant of the Options and their exercise. 
  
 6. Changes in Company’s Capital Structure. The existence of the Options will not affect in any way the right or authority
of the Company or its Participants to make or authorize (a) any or all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business; (b) any merger or consolidation of the Company
or its business; (c) any issue of bonds, debentures, preferred or prior preference stock ahead of or affecting the Stock or the rights thereof; (d) the dissolution or liquidation of the Company; (e) any sale or transfer of all or any
part of its assets or business; or (f) any other corporate act or proceeding, whether of a similar character or otherwise. 
  
 7. Plan. The Options are granted pursuant to the Plan, and the Options and this Amendment are in all respects governed by the Plan and subject to all of the
terms and provisions thereof, whether such terms and provisions are incorporated in this Amendment by reference or are expressly cited. 
  
 8. Employment, Directorship or Other Service. No provision of this Amendment or of the Options granted hereunder shall give the Participant any right to
continued employment, directorship or other service with respect to the Company or any Affiliates, create any inference as to the length of employment, directorship or other service of the Participant, affect the right of the Company or Affiliates
to terminate the employment, directorship or other service of the Participant, with or without Cause, or give the Participant any right to participate in any employee welfare or benefit plan or other program (other than the Plan) of the Company or
any of the Affiliates. 
  
 9. Governing Law. This Amendment and the
Options granted under the option agreement as amended hereby shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware (other than its laws respecting choice of law). 

 10. Waiver; Cumulative Rights. The failure or delay of either party hereto to require performance by such
other party of any provision hereof shall not affect its right to require performance of such provision unless and until such performance has been waived in writing. Each and every right hereunder is cumulative and may be exercised in part or in
whole from time to time. 
  
 11. Notices. Any notices, consents, or
other communication to be sent or given hereunder by any of the parties shall in every case be in writing and shall be deemed properly served if (a) delivered personally, (b) sent by registered or certified mail, in all such cases with
first class postage prepaid, return receipt requested, or (c) delivered to a nationally recognized overnight courier service, to the parties at the addresses set forth below: 
  

			
	 If to the Company:
	 	 Earle M. Jorgensen Company
 10650 Alameda Street
 Lynwood, California 90262
 Attention: Corporate Secretary
 Facsimile: (323)567-1034

	 If to the Participant:
	 	_________________________________
	 	 	_________________________________
	 	 	_________________________________
	 	 	_________________________________

  
 or such other address or to the
attention of such other person as the recipient party shall have specified by prior written notice to the sending party. Date of service of such notice shall be (w) the date such notice is personally delivered, (x) three (3) days
after the date of mailing if sent by certified or registered mail, or (y) one (1) day after date of delivery to the overnight courier if sent by overnight courier. 
  
 12. Conditional Grant. The Options are granted upon the condition that the Options shall be forfeited unless each and any
person who is a spouse of the Participant at any time on or after the Amendment Date (including any person who becomes a spouse after the Amendment Date) executes a Consent of Spouse form provided by the Committee, unless the Committee shall waive
such condition. 
  
 13. Entire Agreement. This Amendment and the
Plan embody the complete agreement and understanding among the parties, and supersede and preempt any prior understandings, agreements or representations by or among the parties hereto, written or oral, with respect to the subject matter hereof.

  
 14. Counterparts. This Amendment may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same instrument. 
  
 15. Successors and Assigns. This Amendment is intended to bind and inure to the benefit of, and be enforceable by, the Participant and the Company and their
respective successors and assigns. 
  
 16. No Strict Construction.
The language used in this Amendment will be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction will be applied against any party hereto. 

 17. Remedies. Each of the parties to this Amendment will be entitled to enforce its rights under this
Amendment specifically, to recover damages by reason of any breach of any provision of this Amendment and to exercise all other rights existing in its favor. The Participant agrees and acknowledges that money damages will not be an adequate remedy
for any breach of the provisions of this Amendment and that the Company shall be entitled to specific performance and injunctive relief in order to enforce, or prevent any violations of, the provisions of this Amendment. 
  
 18. Amendments and Waivers. The Administrator may amend or waive any of the
terms of the Award heretofore granted, prospectively or retroactively, but no such amendment shall adversely affect the rights of the Participant without the Participant’s consent. 
  
 19. Headings. The captions set forth in this Amendment are for convenience only and shall not be considered as part of this
Amendment or as in any way limiting the terms and provisions hereof. 
  
 [Remainder of page intentionally left blank. Signature page follows.] 

 IN WITNESS WHEREOF, the Company has caused this Amendment to be duly executed by an officer
thereunto duly authorized, and the Participant has hereunto set his hand, all as of the day and year first above written. 
  

			
	EARLE M. JORGENSEN COMPANY
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

	
	 Participant:Retention Agreement between EMJ and William S. Johnson

 Exhibit 10.4 
  
 Execution Copy 
  
 RETENTION AGREEMENT 
  
 This Retention Agreement (the “Agreement”) is made as of the 17th day of January, 2006, by and between Earle M. Jorgensen
Company, a Delaware corporation (the “Company”), and William S. Johnson (the “Executive”). 
  
 WHEREAS, the Executive is the Company’s Vice President, Chief Financial Officer and Secretary; 
  
 WHEREAS, pursuant to the terms of the Agreement and Plan of Merger (the
“Merger Agreement”), dated as of January 17, 2006, by and among the Company, Reliance Steel & Aluminum Co., a California corporation (“Reliance”), and RSAC Acquisition
Corp., a Delaware corporation and wholly owned subsidiary of Reliance (“Merger Sub”), Reliance will acquire all of the issued and outstanding common stock of the Company and has agreed to merge the Company with and
into Merger Sub, and Merger Sub will be the surviving corporation (the term Company includes the surviving corporation after the effective time of the Merger) of such merger (the “Merger”); 
  
 WHEREAS, the Executive possesses an intimate knowledge of the business,
finances and affairs of the Company, its policies, methods, personnel and opportunities, and has made valuable contributions to the productivity and profitability of the Company; 
  
 WHEREAS, the Company desires to assure itself of the Executive’s continued employment by the Company during the Merger
and to incentivize the Executive to continue his employment with the Company on the terms herein provided and, thereafter, to compensate him for his efforts; and 
  
 WHEREAS, the Executive is desirous of committing himself to serve the Company on the terms herein provided. 
  
 NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements of the parties herein contained, the Executive and the Company hereby agree as follows: 
  
 1. Employment; Term. 
  
 (a) Employment. The Company hereby agrees to employ the Executive, and the Executive hereby agrees to serve, subject to the
provisions of this Agreement, as the Vice President and Chief Financial Officer of the Company, effective as of the Effective Date (as defined in Section 1(b)). Unless the Company in its sole discretion determines otherwise, this
Agreement shall be terminated and thereafter be of no effect if and when the Merger Agreement is terminated. The Executive’s duties and responsibilities have included those ordinarily performed by the chief financial officer of a
publicly-traded corporation, including, without limitation, direct responsibility for (i) the Company’s accounting systems, cash management, operational budgeting and financial reporting, (ii) supervision and direction of the
Company’s financial staff, (iii) preparation of financial statements, (iv) preparation and coordination with outside professional advisors of all regulatory filings, including those required by the rules and regulations of the
Securities and Exchange Commission and the New York Stock Exchange, (v) interfacing with the Company’s auditors, (vi) coordination of the Company’s compliance 

 
with all of the requirements of the Sarbanes-Oxley Act of 2002, (vii) the administrative and financial management of the Company’s property and
business and (viii) working with other senior officers of the Company to improve the overall business operations, assess economic opportunities, evaluate the Company’s overall corporate structure and recommend improvements to the
Company’s Board of Directors, (ix) interfacing with the Company’s lenders in connection with the Company’s financing arrangements and (x) interfacing with the Company’s investor relations advisors and investment
analysts in connection with disclosures to the public. The Executive shall continue to perform such duties to the extent necessary and appropriate after the Effective Date and shall perform such other duties and have such other responsibilities that
are from time to time assigned by the Chief Executive Officer, President and the Chief Operating Officer of the Company and/or the Board of Directors of the Company. The executive’s permanent base of operations shall be at the corporate
headquarters offices of the Company in Lynwood, California, unless changed by mutual agreement, although the Executive shall render services at such other sites as necessary from time to time to properly perform his duties. The Executive agrees to
devote all of his business time, attention and energies to the performance of duties assigned to him hereunder, and to perform such duties faithfully, diligently and to the best of his abilities and subject to such laws, rules, regulations and
policies from time to time applicable to the Company’s employees. The Executive agrees to refrain from engaging in any activity that does, will or could reasonably be deemed to conflict with the best interests of the Company. Upon consummation
of the Merger, the Executive shall perform such other duties and have such other responsibilities of a similar nature with respect to Reliance that are from time to time assigned by the Chief Executive Officer, the Chief Operating Officer or the
Chief Financial Officer of Reliance and/or the Board of Directors of Reliance. 
  
 (b) Term. The period of employment under this Agreement (the “Employment Term”) shall commence as of
the date hereof (the “Effective Date”), and shall continue until the earlier of (i) the third (3rd) anniversary of the Effective Date or (ii) the Termination Date. There shall be no extension of this Agreement other than by written instrument executed by the parties hereto. 
  
 2. Compensation; Benefits; Bonus Payments. 
  
 (a) Salary. The Executive’s base salary
(“Salary”) shall be at the annual rate of $231,783.36, payable in accordance with the Company’s regular payroll practices. 
  

(b) Incentive Bonus Plans. The Executive will be entitled to participate in any cash or equity incentive bonus plans generally applicable to
senior executives of the Company as such plans are amended from time to time in accordance with the terms thereof. The Executive’s participation in such plans shall continue in substantially the same manner, relative to the other senior
executives of the Company, as the Executive has participated in such plans in the past. 
  
 (c) Benefits and Perquisites. The Executive shall receive all benefits and perquisites in accordance with the terms and conditions of such benefits plans and perquisite arrangements maintained from time to time
by the Company in substantially the same manner as the Executive has participated in such plans and arrangements in the past. 
  
 (d) Supplemental Retirement Plans and Deferred Compensation Plans. The Executive shall continue to participate in the Earle M. Jorgensen Retirement
Savings Plan, the 

 
Earle M. Jorgensen 401(a)(17) Supplemental Contribution Plan, as in effect on the date hereof, and any related plans, on substantially the same terms and
conditions as he has participated in such plans in the past. \ 
  
 (e) Bonus for Six-Month Transition Period. On the six-month anniversary of the effective time of the Merger, if the Executive is still employed by the Company, Reliance or any affiliate of Reliance, Executive shall be entitled to a
bonus equal to the difference between the Section 280G Limit Amount (as defined below) and $625,000, payable in accordance with the Company’s regular payroll practices. For purposes of this Agreement, the “Section 280G Limit
Amount” shall mean an amount equal to 2.99 times the Executive’s “base amount” as defined in Section 280G(b)(3) of the Internal Revenue Code of 1986, as amended (the “Code”).

  
 (f) Bonus for Twelve-Month Period. On the twelve-month
anniversary of the effective time of the Merger, if the Executive is still employed by the Company, Reliance or any affiliate of Reliance, Executive shall be entitled to a bonus of $200,000, which the parties agree shall constitute reasonable
additional compensation for his services rendered to the Company and Reliance after the effective time of the Merger. 
  
 3. Termination. The date on which this Agreement is terminated pursuant to this Section 3 is the “Termination
Date.” 
  
 (a) The
Executive’s employment may be terminated by the Company during the Employment Term upon the occurrence of one or more of the following dates: 
  
 (i) the date of the Executive’s death; 
  
 (ii) the date on which the Executive receives notice of termination from the Company on account of Disability (as defined in
Section 3(b)(ii)); provided that, if the Executive becomes disabled, he shall receive benefits under the terms of a Company disability plan which provides, at a minimum, the same benefits as those provided under the terms of the
Company disability plan in force as of the day prior to the Termination Date; provided, however, that if, at any time during the Employment Term and while the Executive is receiving such disability benefits, the Company takes any
action which causes the Executive’s benefits under such plan to decrease in value, then any termination of the Executive’s employment by the Company under this Section 3(a)(ii) shall be deemed to be a termination without Cause
and the Executive shall become entitled to all payments and benefits due to the Executive under Sections 4 and 5, as applicable; provided, further, that, in determining the amount of such payments and benefits, the
Termination Date shall be deemed to be the date of commencement of disability under this Section 3(a)(ii) and in determining the payments and benefits due to the Executive, the Company shall be entitled to credit for the present value as
of the Termination Date of all benefits provided and to be provided to the Executive under the Company’s disability plan; 
  
 (iii) the date on which the Executive receives notice of termination for Cause (as defined in Section 3(b)(i)) from the
Company; or 
  
 (iv) the date on which the
Executive shall receive notice of termination from the Company for any other reason. 

 (b) Definitions. 
  
 (i) “Cause” shall mean a termination of the Executive’s employment by
the Company or any of its subsidiaries due to (A) conviction of the Executive of any felony or any act which shall be an offense of moral turpitude, (B) the engaging by such Executive in intentional serious misconduct which is materially
injurious to the Company or any of its subsidiaries, including, without limitation, the intentional wrongful disclosure of material secret or confidential information of the Company or any of its subsidiaries or an intentional material act of fraud
or embezzlement in connection with his duties or in the course of his employment or (C) the willful misconduct by the Executive, including insubordination, in respect of the duties or obligations of the Executive under this Agreement. For the
purposes of this Agreement, no act, or failure to act, on the part of the Executive shall be deemed “intentional” unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that his action or
omission was in the best interests of the Company. Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated for Cause hereunder unless and until there shall have been delivered to the Executive a copy of a resolution
of the Board of Directors of the Company finding that in the good faith opinion of the Board of Directors of the Company the Executive had committed an act set forth above in this Section 3(b)(i) and specifying the particulars thereof in
detail. Nothing herein shall limit the right of the Executive or his legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees to contest the validity or propriety of any such determination.
Notwithstanding the foregoing, in the event of any termination for Cause where the underlying events and the consequences arising therefrom are reasonably amenable to cure by the Executive, such termination shall only become effective if
(I) the Company shall first (x) give the Executive written notice of such Cause, which notice shall identify in reasonable detail the manner in which the Company believes that the Executive has not performed such duties and indicates the
steps required to cure such failure or refusal and (y) afford the opportunity to cure such failure or refusal, and (II) the Executive shall fail within thirty (30) business days of receipt of such notice to substantially cure the same.

  
 (ii)
“Disability” shall mean the Executive’s inability to substantially perform his duties hereunder for a period of six (6) months as a result of the Executive’s physical or mental condition, including,
without limitation, a condition entitling him to benefits under any sick pay or disability income policy or program of the Company. The Executive agrees to submit to such medical examinations as may be necessary to determine whether a Disability
exists, pursuant to such reasonable requests made by the Company from time to time. 
  
 (c) At any time after the date of this Agreement, the Executive may terminate his employment with the Company for “Good Reason”
and retain his rights and benefits provided under Sections 4 and 5. The term “Good Reason” for the purposes of this Agreement shall mean: 
  
 (i) without the Executive’s prior written consent, (A) any material reduction in the
Executive’s Salary during the Employment Term, (B) any material reduction in bonus or incentive compensation received by the Executive relative to the other senior executives of the Company (based upon the method of calculating bonus or
incentive compensation for the senior executives of the Company for fiscal 2005 or for the fiscal year preceding the year in which the Termination Date occurs), (C) a termination, material reduction or material adverse alteration of disability
policies or life or disability insurance benefits 

 
maintained for the Executive or any material adverse alteration or reduction of expense allowances or reimbursement policies, other than a termination,
reduction or alteration affecting all senior executives of the Company and its subsidiaries or resulting from changes required by, or in reasonable response to, changes in law affecting such benefits or (D) a material reduction in the scope or
value of the aggregate other benefits to which the Executive was entitled immediately prior to the Effective Date; any of which of the foregoing is not remedied within twenty (20) calendar days after receipt by the Company of written notice
from the Executive of such change, reduction, alteration or termination, as the case may be. Notwithstanding anything in this Section 3(c)(i) to the contrary, during the Employment Term, the Company will not (y) unless required by a
change in applicable law, reduce or adversely alter any benefits to be derived by the Executive under the Earle M. Jorgensen Company Retirement Savings Plan or any supplemental plan in which Executive participates or (z) unless required by, or
in reasonable response to, a change in applicable law, reduce or adversely alter any other benefits referred to in clause (C) above that are currently available only to the senior executives of the Company. If the Company reduces or adversely
alters any such benefits referred to in clause (y) or (z) above because of a change in applicable law or, in the case of clause (z) only, a reasonable response to a change in applicable law, the Company will use its best efforts to
provide the Executive with equivalent benefits, provided, however, that the Company shall not be required to provide equivalent benefits to the extent that the cost to the Company would exceed two hundred percent (200%) of the
cost to the Company of providing the benefits prior to such change in law. For purposes of this Section 3(c)(i), the term “material,” when used in reference to any reduction or adverse alteration, means a
reduction or adverse alteration resulting in a reduction by five percent (5%) or more of the dollar value of the benefits to which such reduction or adverse alteration applies; 
  
 (ii) the relocation of the Executive’s principal place of work more than thirty-five (35) miles
from the current location of the Company’s headquarters in Los Angeles, California or the requirement that the Executive travel away from his office in the course of discharging his responsibilities or duties hereunder significantly more (in
terms of either consecutive days or aggregate days in any calendar year) than required of him prior to the Effective Date, in either case without his prior written consent; or 
  
 (iii) the Company commits any material breach of this Agreement, unless consented to in writing in advance
by the Executive. 
  
 (d) Notwithstanding any
other provision hereof to the contrary, at any time during the Employment Term and upon the giving of thirty (30) days prior written notice, the Executive may terminate his employment hereunder for any reason. 
  
 (e) A termination by the Company pursuant to
Section 3(a) or by the Executive pursuant to Section 3(d) shall not affect any rights which the Executive may have pursuant to any other agreement, policy, plan, program or arrangement of the Company providing benefits to the
Executive, which rights shall be governed by the terms thereof. If the Executive’s employment is terminated under circumstances in which the Executive is not entitled to any payments or benefits under Section 4 or 5, the
Executive shall have no further obligation or liability to the Company hereunder or otherwise with respect to his prior employment by the Company, except that the Executive shall remain liable to the Company for any amounts loaned 

 
or advanced to the Executive or any damage to the Company resulting from the Executive’s illegal conduct or conduct referred to in
Section 3(c)(i). 
  
 (f) Any
termination by the Company pursuant Section 3(a) or by the Executive pursuant to Section 3(c) or 3(d) shall be communicated by written Notice of Termination to the other party hereto. For purposes of this Agreement, a
“Notice of Termination” shall mean a notice specifying the termination provision in this Agreement relied upon and setting forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under the provision so specified. 
  
 4. Severance Compensation. 
  
 (a) If, during the Employment Term the Company terminates the Executive’s employment pursuant to Section 3(a)(i) or 3(a)(iv), or the Executive terminates his employment pursuant to
Section 3(c) with an effective date prior to the six-month anniversary of the effective time of the Merger, the Company shall pay to the Executive the bonus specified in Section 2(e), subject to the Executive’s execution
of a general release of all claims against the Company Group arising out of or in connection with the Executive’s employment by and with the Company (as defined in Section 7), substantially in the form attached hereto as Exhibit
A the “Release”), as his sole and exclusive remedy. 
  
 (b) If during the Employment Term the Company terminates the Executive’s employment pursuant to Section 3(a)(i) or
3(a)(iv), or the Executive terminates his employment pursuant to Section 3(c) with an effective date on or after the six-month anniversary and prior to the twelve-month anniversary of the effective time of the Merger, the Company
shall pay to the Executive a portion of the bonus specified in Section 2(f) that is equal to the product of the bonus amount and a fraction the numerator of which is the number of days elapsed from the effective time of the Merger to and
including the date of termination and the denominator of which is 365, subject to the Executive’s execution of the Release, as his sole and exclusive remedy. 
  
 (c) The Company shall have no right of set-off or counterclaim in respect of any claim, debt or obligation
against any payment or benefit to or for the benefit of the Executive provided for in this Agreement. 
  
 (d) Without limiting the rights of the Executive at law or in equity, if the Company fails to make any payment required to be made
hereunder on a timely basis, the Company shall pay interest on the amount thereof on demand at an annualized rate of interest equal to the product of 1.2 and the then applicable federal rate determined under Section 1274(d) of the Code.

  
 5. Compensation and Benefits During Disability or Upon
Termination. Subject to the Executive’s execution of a general release of all claims against the Company Group, substantially in the form attached hereto as Exhibit A: 
  
 (a) During any period that the Executive fails to perform his duties hereunder as a result of Disability,
the Executive shall continue to receive his full Salary at the rate then in effect, and any incentive awards based on periods of more than one (1) year shall continue to accrue and to be payable during such period of Disability until the
Executive’s employment is 

 
terminated pursuant to Section 3(a)(ii) (and for any longer period as may be provided under applicable plans). 
  
 (b) If the Executive’s employment is terminated for
Cause pursuant to Section 3(a)(iii), or if the Executive terminates his employment pursuant to Section 3(d), the Company shall pay the Executive on the Termination Date his full Salary and accrued vacation pay through the
Termination Date at the rate in effect at the time Notice of Termination is given plus any benefits or awards (including both the cash and stock components) which pursuant to the terms of any plans have been earned or become payable, but which have
not yet been paid to the Executive (including awards that have been deferred at the Executive’s request), and shall have no further obligations to the Executive under this Agreement. 
  
 Amounts paid pursuant to this Section 5 shall be deemed severance pay and in lieu of any further Salary, bonus
and incentive compensation for periods subsequent to the Termination Date. 
  
 6. No Mitigation Required. In the event that this Agreement or the employment of the Executive by the Company hereunder is terminated, the Executive shall not be obligated to mitigate his damages or the amount
of any payment provided for in this Agreement by seeking other employment or otherwise. 
  
 7. Confidential Information. The Executive acknowledges that the information, observations and data obtained by him during the course of the performance of his duties under this Agreement concerning the
business and affairs of the Company, its subsidiaries and affiliates (the “Company Group”) are the property of the Company, including information concerning acquisition opportunities in or reasonably related to the
Company Group’s business or industry of which the Executive becomes aware prior to or during the Employment Term. Therefore, the Executive agrees that he will not disclose to any unauthorized person or use for his own account any such
information, observations or data without the written consent of the Board of Directors of the Company, unless and to the extent that such information, observations or data (a) becomes generally known to and available for use by the public
other than as a result of the Executive’s acts or omissions to act or (b) was or becomes available to the Executive on a nonconfidential basis from a source other than the Company, provided that such source is not known by the Executive to
be bound by a confidentiality obligation to the Company. Notwithstanding anything to the contrary set forth herein, in the event that the Executive becomes legally compelled to disclose any of such information, observations or data, he shall provide
the Company with prompt written notice so that the Company may seek a protective order or other appropriate remedy or waive compliance with the provisions of this Agreement. In the event that such protective order or other remedy is not obtained, or
that the Company waives compliance with provisions of this Agreement, the Executive shall furnish only that portion of such information, observations or data or take only such action as is legally required by binding order and shall exercise his
best efforts to obtain reliable assurance that confidential treatment shall be accorded any such information, observations or data so furnished. In any event, the Executive may disclose any of such information, observations or data to the extent
necessary in connection with any legal action he institutes to enforce the terms of this Agreement. The Executive agrees to deliver to the Company at the end of the Employment Term, or at any other time the Company may request in writing, all
memoranda, notes, plans, records, reports and other documents (and copies thereof) relating to the Business (as defined in Section 8) of the Company Group 

 
(including, without limitation, all acquisitions prospects, lists and contact information) which he may then possess or have under his control. 

 
 8. Non-Compete and Non-Solicitation. 
  
 (a) The Executive acknowledges and agrees that this
Section 8 is a necessary term and condition of his employment and continued employment and that all payments and benefits under Sections 4 and 5 are in consideration for and conditioned upon his compliance with this
Section 8. 
  
 (b) During his
employment with the Company and for a period ending on the second (2nd) anniversary of the Termination Date,
including, without limitation, expiration of this Agreement (the “Non-Compete Period”), the Executive will not provide services, in any capacity, whether as an employee, consultant, independent contractor, or
otherwise, to any person or entity that provides products or services that is in the Business of the Company and its subsidiaries, and their respective successors or assigns; provided, however, that, if the Company terminates the
Executive without Cause pursuant to Section 3(a)(iv), the Non-Compete Period shall terminate and this Section 8(b) shall otherwise have no further force and effect. The term “Business” shall mean the
(i) distribution or processing of metal bar and tubular products and (ii) any other product or service which the Company and its subsidiaries planned to or did provide during the one (1) year period prior to the termination of the
Executive’s employment. 
  
 (c) Following a
written request by the Executive, the Company shall advise him in writing no later than thirty (30) calendar days following such request as to whether, in the exercise of its reasonable discretion, the Company views any proposed activity
contemplated by the Executive as constituting a competing Business and such written notification shall be binding upon the Company. 
  
 (d) The Executive acknowledges that, in the event of the termination of employment with the Company for any reason, the Executive is, and
shall be, able to earn a livelihood without violating the restrictions contained in Section 8(b). 
  
 (e) During the Non-Compete Period, the Executive shall not directly, or indirectly through another entity or otherwise to, induce or
attempt to induce any employee of the Company or its subsidiaries to leave the Company or its subsidiaries, or in any way interfere with the relationship between the Company and its subsidiaries and any employee thereof; provided,
however, that the forgoing will not prohibit a general solicitation to the public or general advertising. 
  
 (f) During the Non-Compete Period, the Executive shall not directly, or indirectly through another entity or otherwise induce or attempt
to induce any customer, supplier or other business relation of the Company or its subsidiaries to cease doing business with the Company or its subsidiaries, or in any way interfere with the relationship between any such customer, supplier or
business relation and the Company and its subsidiaries. 
  
 (g) The Executive and the Company agree not to make any derogatory comments about the other party or any such other party’s subsidiaries or affiliates, current or former directors, officers or employees or take
any action which a reasonable person would 

 
expect, directly or indirectly, to impair the goodwill or business reputation or good name of the other party or any such other party’s subsidiaries or
affiliates. 
  
 (h) Each covenant set forth
herein shall be construed to be separate and distinct from every other covenant set forth herein. In the event that any court or arbitrator shall declare any of such covenants to be invalid, then the remaining covenants and obligations shall be
deemed independent, divisible and enforceable. It is further agreed that the inclusion of the covenants as specified in this Agreement are reasonable and necessary. If any provision of this Agreement is held to be unenforceable because of the scope
of such provision, the court or arbitrator making such determination shall have the power to modify the terms of such provision(s) and said provision shall then be enforceable. 
  
 (i) The Executive agrees that the conduct of any activities prohibited by this Agreement will be a breach of
his business relationship with the Company and will result in substantial irreparable injury to the Company, and that the Company may not be adequately compensated at law for such breach. Accordingly, the Executive consents to entry of injunctive or
other appropriate relief against him with respect to any such breach or threatened breach, without bond or security. The Executive also agrees that he shall be enjoined from violating the provisions of paragraphs (b), (e) and (f) above for
an additional period commensurate with the term of the breach, in the event of a determination by a court that such provisions have been breached by the Executive. 
  
 9. Return of Company Property. The Executive agrees that promptly after the Termination Date, he shall return all
property of the Company Group which is then in or thereafter comes into his possession, including, but not limited to, documents, contracts, agreements, plans, photographs, books, notes, electronically stored data and all copies of the foregoing as
well as any automobile or other materials or equipment supplied by the Company to the Executive. 
  
 10. Ownership of Company Property, Discoveries, Etc. 
  
 (a) The Executive shall promptly disclose to the Company or any person designated by it any and all discoveries, improvements, methods,
trade secrets, formulas, data, programs, flow charts, processes, and other information, data and any other tangible materials, whether or not subject to patent, trademark, copyright, trade secret, or mask work protection and whether or not reduced
to practice, which are made, created, authored, conceived, or reduced to practice by the Executive, either alone or jointly with others, during the period of employment with the Company which: (i) relate to the actual or anticipated business,
activities, or methods, of the Company Group or (ii) result from or are suggested by work performed by the Executive for the Company Group (whether or not made, created, authored, conceived or reduced to practice during normal working hours or
on the premises of the Company) or (iii) result, to any extent, from use of the Company’s premises or property (collectively, “Inventions”). The Executive acknowledges that, as between the Executive and the
Company, the Company is to be the sole and exclusive owner of any and all such Inventions. All such Inventions are to be considered “works made for hire,” and the Executive hereby disclaims any and all interest in any of such Inventions
and waives any right of attribution, droit morale or similar right therein. 

 (b) In the event that title to any of the Inventions or any part thereof, does not, by
operation of law, vest in the Company or such Inventions are found not to be “works made for hire,” the Executive, to the full extent permitted by law, hereby irrevocably assigns to the Company, without further consideration, all right,
title and interest the Executive may acquire throughout the universe and in perpetuity, in all such Inventions and all copies of them, in whatever medium fixed or embodied, and in all records, notes, reports or disks relating thereto in the
Executive’s possession or under his control, including all proprietary rights therein, the right to modify and create “derivative works” thereof and the right to register and renew the same. 
  
 (c) The Executive agrees to assist the Company, at the
Company’s request, whether before or after the termination of employment and however such termination may occur, in perfecting, registering, maintaining and enforcing, in any jurisdiction, the Company’s rights in the Inventions by
performing all acts and executing all documents deemed necessary by the Company, including, without limitation, documents confirming the assignment of such Inventions to the Company. The Executive will be reimbursed for all out-of-pocket costs
incurred in connection with the foregoing, and, if the Executive’s cooperation is requested by the Company after the termination of employment, then the Company will compensate the Executive at a reasonable rate for the time actually spent by
the Executive in rendering such assistance. The Executive hereby irrevocably appoints the Company to be his attorney-in-fact, in his name and on his behalf to execute any document and to take any action for the purpose of giving the Company the full
benefit of the assignment provisions set forth in paragraph (b) above. 
  
 11. Parachute Payment Adjustments. In the event that any payment to the Executive, whether due pursuant to this Agreement or otherwise, constitute “parachute payments” within the meaning of
Section 280G of the Code (as reasonably determined by the Company’s outside auditors and agreed to in writing by the Executive at the time such payment is due) and, but for this Section 11, would be subject to the excise tax
imposed by Section 4999 of the Code, the Company shall reduce the aggregate amount of payments due hereunder such that the present value thereof (as determined under the Code and the applicable regulations) is equal to 2.99 times the
Executive’s “base amount” as defined in Section 280G(b)(3) of the Code. The parties hereto acknowledge and agree that, assuming the Executive performs his obligations hereunder, they currently believe that the consideration
payable hereunder should be “reasonable compensation for personal services to be rendered on or after” and should not constitute “parachute payments” within the meanings of such terms for the purpose of the application of
Sections 280G and 4999 of the Code and income tax regulations thereunder. 
  
 12. Successors; Binding Agreement. This Agreement and all rights of the Executive hereunder shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. This Agreement shall be binding upon and enforceable by the Executive against the Company’s successors and assigns, including, without limitation, any successor by merger
or consolidation or any assignee of a substantial portion of the assets of the Company. 
  
 13. Notices. Any notice, demand or request under this Agreement must be in writing (which may include a facsimile), shall be addressed to the party to be notified at the address indicated below, or at such
other address as such party may designate by written notice to the other party, and will be deemed to have been given and received when delivered to the appropriate address. All communications shall be sent to the address as set forth below or at

 
such other address as such party may designate by ten (10) days advance written notice to the other party hereto: 
  
 If to the Executive: 
  
 William S. Johnson 
 744 Via Lido Soud 
 Newport Beach, California
92663 
  
 If to the Company: 
  
 Earle M. Jorgensen Company 
 10650 Alameda Street 
 Lynwood, California
90262 
 Attn: R. Neil McCaffery 
  
 with a copy to 
  
 Katten Muchin Rosenman LLP 
 2029 Century Park
East, Suite 2600 
 Los Angeles, California 90067 
 Attn: Mark A. Conley, Esq. 
  
 or to such other
address as any party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 
  
 14. Miscellaneous. No provisions of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing signed by the Executive and such officer as may be specifically designated by the Board of Directors of the Company. No waiver by either party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express
or implied, unless specifically referred to herein, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of California. 
  
 15. Validity. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

  
 16. Counterparts. This Agreement may be executed in
several counterparts, each of which shall be deemed to be an original but both of which together will constitute one and the same instrument. 
  
 17. Employment Rights. Nothing express or implied in this Agreement shall create any right or duty on the part of the Company to have the Executive
remain in the employment of the Company. 

 18. Withholding of Taxes. The Company may withhold from any amounts payable under this Agreement
all federal, state, city or other taxes as shall be required pursuant to any law or government regulation or ruling. 
  
 19. Legal Fees and Expenses. It is the intent of the Company that the Executive not be required to incur the expenses associated with the
enforcement of his rights under this Agreement by litigation or other legal action because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Executive hereunder. Accordingly, if it should
reasonably appear to the Executive that the Company has failed to comply with any of its obligations under the Agreement or in the event that the Company or any other person takes any action to declare the Agreement void or unenforceable, or
institutes any litigation designed to deny, or to recover from, the Executive the benefits intended to be provided to the Executive hereunder, the Company irrevocably authorizes the Executive from time to time to retain counsel of his choice, at the
expense of the Company as hereafter provided, to represent the Executive in connection with the initiation or defense of any litigation or other legal action, whether by or against the Company or any director, officer, stockholder or other person
affiliated with the Company, in any jurisdiction. The Executive shall give the Company prompt written notice of the retention of counsel under the terms of this Section 19. Notwithstanding any existing or prior attorney-client
relationship between the Company and such counsel, the Company irrevocably consents to the Executive’s entering into an attorney-client relationship with such counsel, and in that connection the Company and the Executive agree that a
confidential relationship shall exist between the Executive and such counsel. The Company shall pay and be solely responsible for (i) reasonable attorneys’ and related fees and expenses incurred by the Executive as a result of the
Company’s failure to perform this Agreement or any provision thereof or as a result of the Company or any person contesting the validity or enforceability of this Agreement or any provision thereof as aforesaid and (ii) an additional
amount which shall, after the imposition of all income and any excise taxes and interest and penalties thereon, is equal to any excise tax payable by the Executive under Section 409A of the Code as a result of the payment by the Company of such
fees and expenses. 
  
 20. References; Interpretations.
When a reference is made in this Agreement to a Section, such reference shall be to a section of this Agreement unless otherwise indicated. The table of contents and headings contained herein are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without
limitation.” 
  
 [The remainder of this page has been left
blank intentionally. Signature page follows.] 

 IN WITNESS WHEREOF, the parties have executed this Retention Agreement effective on the date and year
first above written. 
  

			
	COMPANY:
	
	 EARLE M. JORGENSEN COMPANY,
 a Delaware corporation

		
	 By:
	 	 /s/ Maurice S. Nelson, Jr.

	 Title:
	 	 CEO

  

	
	EXECUTIVE:
	
	 /s/ William S. Johnson

	 William S. Johnson

 Exhibit A 
  
 Form of General Release 

 GENERAL RELEASE 
  
 Upon full execution of the Retention Agreement (the “Retention Agreement”) dated January
17, 2006 by and between Earle M. Jorgensen Company (the “Company”) and William S. Johnson (the “Employee”), the Employee pursuant to this General Release (this
“Release”) releases and discharges forever the Company and each of its subsidiaries and affiliates, and each of their respective current and former directors, officers, boards, administrators, shareholders, employees,
attorneys, agents and representatives, predecessors, successors and assigns (collectively, the “Company Parties”), any and all as the case may be, of and against all liabilities, claims, causes of action, charges,
complaints, obligations, costs, losses, damages, injuries, attorneys’ fees and other legal responsibilities, of any form, any kind and character whatsoever, whether legal, contractual, statutory or equitable in nature or otherwise, whether
known or unknown, suspected or unsuspected, direct or indirect, absolute, fixed or contingent, that Employee now owns, holds, has or claims to have, or owned at any time, held, had or claim to have had or may come to own, hold, have or claim to have
against the Company Parties arising out of any matter or thing done, omitted to be done or suffered to be done by the Employee, or any of them, prior to and including the date hereof, specifically including, without limitation, matters arising out
of or in connection with the Employee’s employment by and with the Company. 
  
 Pursuant to the terms and conditions of this Release, the Employee hereby knowingly, voluntarily and expressly waives and relinquishes any and all rights and benefits that he may have under Section 1542 of the
California Civil Code, or under any similar provision of law of any state or territory of the United State or any other jurisdiction and under any similar or analogous principle of common law, relating to his employment by and with the Company. The
Employee expressly understands and acknowledges that Section 1542 of the California Civil Code provides as follows: 
  
 “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release,
which, if known by him, must have materially affected his settlement with the debtor.” 
  
 The Employee further agrees and acknowledges that this waiver of all rights and similar benefits under such Section 1542 and under any similar statutes of any other jurisdiction (to the fullest extent that the
Employee may lawfully waive all such rights and benefits with respect to the subject matter of this Release) are essential and material terms of this Release, without which the consideration given pursuant to the Retention Agreement by the Company
would not have been given. 
  
 The Employee represents, warrants
and agrees that he has received, or has fair and ample opportunity to receive, independent legal advice from his attorney with respect to the advisability of executing this Release. Each of the Employee and the Company expressly acknowledges and
agrees that this Release represents a release of potential claims and is not, in any respect, nor for any purpose, to be deemed or construed to be an admission or concession of any liability or wrongdoing by any of the Company Parties whatsoever or
of the existence of any claim. 
  

 15 

 This Release shall be construed and enforced in accordance with, and governed by, the internal,
substantive laws of the State of California. Any lawsuits filed to enforce any provision of this Release by either the Employee or the Company shall be filed in the Superior Court for the State of California, County of Los Angeles. 
  
 IN WITNESS WHEREOF, the undersigned have caused this Release to be executed
as of                     , 200  . 
  

			
	COMPANY:
	
	 EARLE M. JORGENSEN COMPANY

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

	
	EMPLOYEE:
	
	 WILLIAM S. JOHNSON

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