Document:

Adjustment to Outstanding Stock Option Letter

  
 EXHIBIT 10.41

  
 [Letterhead of Holding] 
  
 December 17, 2004 
  
 Mr. Maurice S. Nelson, Jr. 
 President and Chief
Executive Officer 
 Earle M. Jorgensen Company 
 10650 Alameda
Street 
 Lynwood, California 90262 
  

	Re:	Adjustment to Outstanding Stock Option 

  
 Dear Mr. Nelson: 
  
 This letter is to confirm our agreement with respect to certain changes that will be made to your outstanding stock option that was granted pursuant to
the terms of the Earle M. Jorgensen Holding Company, Inc. Option Plan (the “Plan”). This stock option, covering 1,320,000 shares of common stock of Earle M. Jorgensen Holding Company, Inc. (“Holding”), with an exercise
price of $5.41 per share, was granted on January 30, 1997. 
  
 In
accordance with Section 6.6 of the Plan, you and Holding have agreed that Holding will make a cash payment to you in the sum of $3,006,000 in exchange for the cancellation of the portion of the option that would allow you to receive 360,000 shares
of common stock of Holding upon exercise. This payment represents the difference between the fair market value as of March 31, 2004 of a share of Holding common stock under the current valuation method ($13.76) and the per share exercise price of
the option ($5.41), multiplied by 360,000. This payment will be made to you immediately prior to effectiveness of the amendment to the Plan that will permit Holding to adjust the remaining portion of your option. 
  
 As part of a settlement with the U.S. Department of Labor, Holding will
change the valuation method used to determine the value of its shares of common stock. This change in method will cause the value of each share to decrease from $13.76 (the estimated value as of the last valuation) to $7.80 per share. 
  
 Holding intends to revise the terms of all of its outstanding stock options
to preserve the intrinsic value of the options in light of the change in valuation method. In order to do this, Holding intends to adjust the exercise price and the number of shares to be received upon the exercise of the portion of your stock
option remaining after the partial cancellation. 
  
 For the
portion of your stock option remaining after the partial cancellation, the exercise price per share will be reduced by multiplying (i) the current exercise price ($5.41) by (ii) 0.5669, which is approximately equal to the ratio of the new value of
Holding’s common stock divided by the value under the old valuation methodology ($7.80/$13.76). Also, the number of shares of Holding common stock covered by the stock option will be increased by multiplying (i) the remaining number of shares
covered by the option (960,000) by (ii) 1.7641 (which is the reciprocal of the ratio set forth above). 
  

 Consequently, your adjusted stock option will have an exercise price of $3.07 per share ($5.41 x 0.5669)
and will cover 1,693,536 shares (960,000 x 1.7641). 
  
 The other
terms of your stock option, including the vesting provisions and the expiration date of such option, will not be changed as a result of the adjustment set forth above. 
  
 By executing and returning a copy of this letter to me, you agree that: (1) you and Holding have mutually consented to the
cash payment in lieu of the cancellation of part of your stock option and the adjustment of the remaining portion of your option, all as set forth above; and (2) you release Holding and its affiliates, and their employees, directors and shareholders
from any claim or cause of action relating to arising from (a) the establishment of the original exercise price of your option, (b) the modification to the option described above, (c) the change in valuation methodology used to determine the fair
market value of shares of common stock of Holding and (d) the impact of a public offering of common stock of Earle M. Jorgensen Company on either the value of your stock option or its current intrinsic value. 
  
 Please sign and return a copy of this letter to me by January 15, 2005.

  

					
	 Sincerely,

	
	 EARLE M. JORGENSEN HOLDING COMPANY, INC.

			
	By:	 	 	 	 
	 	 	 Name:
	 	 
	 	 	 Title
	 	 

  

	
	 ACCEPTED AND AGREED TO
 this 17th day of
December, 2004

	
	  
	 Maurice S. Nelson, Jr.

  

 2Form of Adjustment to Outstanding Stock Option Letter

  
 EXHIBIT 10.42

  
 [Letterhead of Holding] 
  
 December     , 2004 
  
 _________________________ 
 _________________________ 
 _________________________ 
 _________________________ 
  

	Re:	Adjustment to Outstanding Stock Options 

  
 Dear
                                    : 
  
 This letter is to confirm our agreement with respect to certain changes that
will be made to your outstanding stock option(s) that were granted pursuant to the terms of the Earle M. Jorgensen Holding Company, Inc. Option Plan. 
  
 As part of a settlement with the U.S. Department of Labor, Earle M. Jorgensen Holding Company, Inc. (“Holding”) will change the valuation
method used to determine the value of its shares of common stock. This change in method will cause the value of each share to decrease from $13.76 (the estimated value as of the last valuation) to $7.80 per share. 
  
 Holding intends to revise the terms of all of its outstanding stock options
to preserve the intrinsic value of the options in light of the change in valuation method. For each outstanding stock option, the exercise price per share will be reduced by multiplying (i) the current exercise price by (ii) 0.5669, which is
approximately equal to the ratio of the new value of Holding’s common stock divided by the value under the old valuation methodology ($7.80/$13.76). Also, the number of shares of Holding common stock covered by each such stock option shall be
increased by multiplying (i) the current number of shares covered by the option, by (ii) 1.7641 (which is the reciprocal of the ratio set forth above). 
  
 Annex A hereto sets forth (i) the date of grant of each option held by you, (ii) the original number of shares subject to such option, (iii) the original
exercise price of such option, (iv) the increased number of shares covered by the option following the adjustments described above and (v) the decreased exercise price following such adjustments. 
  
 The other terms of your stock option(s), including the vesting provisions and
the expiration dates of such option(s), will not be changed as a result of the adjustment set forth above. 
  
 By executing and returning a copy of this letter to me, you agree that: (1) you and Holding have mutually consented to the adjustment of your stock
option(s), as set forth above; and (2) you release Holding and its affiliates, and their employees, directors and shareholders from any claim or cause of action relating to arising from (a) the establishment of the original exercise price of your
option(s), (b) the modification to the option(s) described above, (c) the 

  

 
change in valuation methodology used to determine the fair market value of shares of common stock of Holding and (d) the impact of a public offering of
common stock of Earle M. Jorgensen Company on either the value of your stock option(s) or their current intrinsic value. 
  
 Please sign and return a copy of this letter to me by January 15, 2005. 
  

					
	 Sincerely,

	
	 EARLE M. JORGENSEN HOLDING COMPANY, INC.

			
	By:	 	 	 	 
	 	 	 Name:
	 	 
	 	 	 Title
	 	 

  

	
	 ACKNOWLEDGED AND AGREED TO
 this      day of
                    , 200  

	
	  

  

 2 

 ANNEX A 
  
 STOCK OPTIONS GIVING 
 EFFECT TO ADJUSTMENTS 
  

									
	 DATE OF
 GRANT

	 	 ORIGINAL
 NO. OF
 SHARES

	 	 ORIGINAL
 EXERCISE
 PRICE

	  	 ADJUSTED
 NO. OF
 SHARES

	  	 ADJUSTED
 EXERCISE
 PRICEForm of Transfer Restriction Agreement

 EXHIBIT 10.43 
  
 Letter to Executive Officers and District Managers 
 other than Mr. Nelson 
  
 [EMJ Letterhead] 
  
 [Date]

  
 ________________________ 
 ________________________ 
 ________________________ 
 ________________________ 
  

	Re:	Transfer Restriction Agreement 

  
 Dear
                            : 
  
 This agreement (the “Agreement”) sets forth certain restrictions upon the transfer of all shares of common stock
of Earle M. Jorgensen Company (“EMJ”) beneficially owned by you, including, without limitation, shares of common stock owned directly, or indirectly through the EMJ stock bonus plan, including shares contributed to the stock bonus plan as
part of the special contribution, and shares of common stock received upon exercise of stock options (the “Securities”). The restrictions contained in this letter agreement will be imposed in connection and upon the consummation of an
initial public offering (the “IPO”) of shares of common stock of EMJ. Notwithstanding the foregoing, any Securities purchased by you in the open market after consummation of the merger and financial restructuring and the IPO will not be
subject to this Agreement. 
  
 The transfer restrictions set forth
herein are in consideration of the adjustment of the exercise price and number of shares subject to your stock options and the conversion of your options from options to purchase shares of common stock of Earle M. Jorgensen Holding Company, Inc.
(“Holding”) into options to purchase shares of common stock of EMJ. 
  
 In addition to the restrictions set forth in any lock-up agreement to which you are a party or any other restrictions required by law, including Rules 144 and 145 promulgated under the Securities Act of 1933, as
amended effective as of the closing of the merger and financial restructuring and the IPO, you agree not to (i) offer, sell, contract to sell, pledge, or otherwise dispose of, directly or indirectly, the Securities or securities convertible into or
exchangeable or exercisable for any Securities, enter into a transaction which would have the same effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of the
Securities, whether any such aforementioned transaction is to be settled by delivery of the Securities or such other securities, in cash or otherwise, or (ii) publicly disclose the intention to make any such offer sale, pledge or disposition or to
enter into any such transaction, swap or other arrangement, except as described below. 
  

 The restrictions will not prohibit you from transferring the Securities or such other securities to any
trust, corporation, limited liability company or limited partnership in connection with any bona fide estate planning transaction, provided that any Securities or other securities transferred in such a transaction shall remain subject to the
restrictions as though the transfer had not taken place, and you and any such transferee will be liable to EMJ for any loss, damages or claims arising from a breach of these restrictions. 
  
 The restrictions set forth above will lapse with respect to 25% of the Securities owned by you upon the six-month
anniversary of the closing of the IPO. Thereafter, the restrictions set forth above shall lapse with respect to an additional 25% of the Securities owned by you after each successive six-month period. Consequently, the restrictions will have lapsed
with respect to all of the Securities on the second anniversary of the closing of the IPO. In the event that you acquire additional Securities while the restrictions are in effect, other than in open market transactions, such Securities shall be
subject to the restrictions, and the number of Securities that you may transfer shall be determined by adding up all of the Securities owned or acquired by you since the commencement of this Agreement and applying the applicable percentage to the
total. All transfers of Securities other than estate planning transfers and transfers of Securities acquired in the open market shall count against the limit on permitted transfers. These restrictions will not be affected by your employment status
with EMJ and shall apply notwithstanding any termination of employment. 
  
 This Agreement shall be binding on you and your heirs, beneficiaries, personal representatives and assigns. This Agreement shall lapse and become null and void on March 31, 2005 if the IPO shall not have closed on or prior to such date.

  
 Please sign and return a copy of this letter to me by
                         , 2005. 
  

					
	Sincerely,
	
	EARLE M. JORGENSEN COMPANY
		
	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

	
	ACCEPTED AND AGREED TO
	 this      day of
                    , 2005

	
	 

  
 [Signature Page To
Transfer Restriction Agreement]

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