Document:

exv10w12

Exhibit 10.12

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

          This Amended and Restated Employment Agreement (this “Agreement”) is made and entered into
effective as of January 7, 2010, by and between OLYMPIC STEEL, INC., an Ohio corporation (the
“Company”), and MICHAEL D. SIEGAL (“Executive”).

          WHEREAS, the Company and Executive, an officer of the Company, entered into an Employment
Agreement on August 8, 2006 (“Original Agreement”); and

          WHEREAS, the Company and Executive subsequently amended the Original Agreement on December 31,
2008, in order to comply with the final regulations under Section 409A of the Internal Revenue
Code; and

          WHEREAS, the Company and Executive desire to incorporate the amendments for Section 409A of
the Internal Revenue Code into the Agreement and to make certain other desirable changes and
clarifications;

          NOW, THEREFORE, in consideration of the respective covenants and agreements of the parties
herein contained, the Company and Executive hereby amend and restate the Original Agreement and
agree as follows:

     1. Term of Employment. The Company hereby agrees to continue to employ Executive, and
Executive hereby agrees to continue to serve the Company, on the terms and conditions set forth
herein for the period commencing as of January 1, 2010 and expiring on January 1, 2013 (the
“Employment Period”). The Employment Period shall automatically be renewed on January 1, 2013 for a
period of an additional three years from such date unless, not later than July 1, 2012, the Company
or Executive has given notice to the other party that it or he, as the case may be, does not wish
to have the Employment Period extended. Such extension shall be included in the defined term
Employment Period. In any case, the Employment Period may be terminated earlier under the terms
and conditions set forth herein.

     2. Position and Duties. Executive is the Chief Executive Officer of the Company and
reports to the Board of Directors of the Company, and is presently the Chairman of the Board of
Directors. In this position, Executive has the responsibility for the general management and
operation of the Company and the performance of such other executive services and duties as shall
be reasonably assigned to and requested of him by the Board of Directors. Executive shall serve in
any position and office with the Company as the Board of Directors of the Company may determine
from time to time. However, Executive shall always remain as Chief Executive Officer and at the
level of a senior executive officer of the Company. During the Employment Period, Executive shall
devote substantially all his working time and efforts to the business and affairs of the Company
and serve the Company in its business and perform his duties to the best of his ability.

     3. Compensation.

          (a) Salary. For the period commencing on January 1, 2010 through the remainder of the
Employment Period, Executive shall receive a base salary at the rate of Seven Hundred and Fifty
Thousand Dollars ($750,000.00) per year (the “Base Salary”). Executive’s

 

 

salary shall be reviewed annually, although any salary adjustments shall be at the sole
discretion of the Board of Directors of the Company or any duly authorized Committee thereof,
including but not limited to the Compensation Committee. Notwithstanding the foregoing, in no
event shall Executive’s salary be adjusted below the Base Salary amount unless agreed to in writing
otherwise by the Executive and the Company as set forth in Section 10 below. Such salary shall be
payable in accordance with the normal policies of the Company for payment of its senior executives.

          (b) Benefits Generally. During the Employment Period, Executive shall be eligible to
participate in all welfare and benefit plans which are currently maintained or established, or
which may be established and maintained in the future, by the Company for its senior executives
generally (subject, however, to all of the terms and conditions thereof, including any eligibility
requirements therefor), including but not limited to: (i) group life insurance coverage; (ii)
hospitalization or disability insurance coverage, (iii) retirement plans, including but not limited
to any supplemental executive retirement plan, (iv) long term incentive and equity-based plans; and
(v) the reimbursement plan for financial services and tax planning. For purposes of this
Agreement, no benefit shall be considered to have accrued as of any date under any welfare or
benefit plan referred to in this Section 3(b) if such benefit remains subject to a discretionary
determination under the terms of such plan as of such date.

          (c) Expenses. The Company shall reimburse Executive for reasonable direct expenses
incurred by him on behalf of the Company in the performance of his duties during the Employment
Period. Executive shall furnish the Company with such documentation as is requested by the Company
in order for it to comply with the Code and regulations thereunder in connection with the proper
deduction of such expenses.

          (d) Bonus Plan. During the Employment Period, Executive shall be eligible for a
performance bonus under the Senior Management Compensation Program Plan of 2010, as such plan may
be amended by the Board from time to time, or such other bonus plan that replaces such plan (the
“Bonus Plan”), in such amount and based on the Company’s performance against specific target levels
as is determined by the Board of Directors of the Company or any duly authorized Committee thereof,
including but not limited to the Compensation Committee of the Board.

          If the Company is required to restate its annual financial statements for any fiscal year and
such restatement would reduce the bonus payment for the period covered by such financial
restatement by more than 5%, Executive shall reimburse the Company for the difference between the
bonus actually paid and the bonus payable under the restated financial statement. Executive shall
make such reimbursement not later than sixty (60) days after the restated financial statements have
been made final and disclosed to the public.

          (e) Long Term Incentive Plan. During the Employment Period, Executive shall be
eligible to participate in any Long Term Incentive plan (“LTI”), as any such plan may be created or
amended by the Board from time to time.

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     4. Termination of Employment.

          (a) Events of Termination. The Employment Period shall terminate immediately upon the
occurrence of any of the following events:

               (i) the death of Executive;

               (ii) upon receipt by Executive of the Company’s written notice of intent to terminate due to
Disability (the “Disability Effective Date”);

               (iii) voluntary termination by Executive of his employment with the Company other than for
Good Reason;

               (iv) upon receipt by the Executive of the Company’s written notice that specifies the reasons
for termination for Good Cause;

               (v) thirty (30) days after Executive’s receipt of the Company’s written notice terminating
Executive at any time other than for Good Cause, Death or Disability, for any reason or no reason;
or

               (vi) upon the Executive’s termination for Good Reason.

          For purposes of Section 4, expiration of the Employment Period upon a notice of the Company
under Section 1 that it does not wish to extend the Employment Period shall be deemed a termination
for Good Cause, pursuant to Section 4(a)(iv)(iv) and expiration of the Employment Period upon a
notice of Executive under Section 1 that he does not wish to extend the Employment Period (other
than for Good Reason) shall be deemed a resignation of Executive pursuant to Section 4(a)(iii).

          (b) Notice of Termination. Any termination by the Company for Good Cause (except for
the failure by the Company to extend the Employment Period beyond January 1, 2013) shall be
communicated by Notice of Termination to the other party hereto given in accordance with Section 8.
For purposes of this Agreement, a “Notice of Termination” means a written notice which (i)
indicates the specific termination provision in this Agreement relied upon, (ii) sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of
Executive’s employment under the provision so indicated and (iii) specifies the Termination Date
(as defined below). The failure or omission by the Company to set forth in the Notice of
Termination any fact or circumstance which contributes to a showing of Good Cause shall not waive
any right of the Company hereunder or preclude the Company from asserting such fact or circumstance
in enforcing the Company’s rights hereunder. Except for termination of the Executive by the
Company for Good Cause, the Notice of Termination shall be given 30 days in advance of the
Termination Date.

          (c) Termination Date. “Termination Date” means (i) if Executive’s employment is
terminated by the Company for Good Cause, the date of termination of employment that is set forth
in the Notice of Termination (which shall not be earlier than the date on which such notice is
given), (ii) if Executive’s employment is terminated by the Company other than for Good Cause or
Disability, or Executive resigns, the date on which the Company or

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Executive notifies Executive or the Company, respectively, of such termination, or such later
date as may be specified by the terminating party in such notice, provided that such notice must be
given 30 days in advance of any such date, (iii) if Executive’s employment is terminated by reason
of death or Disability, the date of death of Executive or the Disability Effective Date, as the
case may be, and (iv) if Executive terminates for Good Reason, the termination date specified after
proper notice and cure periods expire as provided in the definition of “Good Reason,” with such
termination date (and Executive’s actual termination) to be no later than 90 days after the
expiration of the cure period.

     5. Obligations of the Company upon Termination.

          (a) Discharge by the Company Other than for Good Cause or Disability or Executive
Terminates for Good Reason. Executive shall be entitled to the severance benefits specified in
this Section 5(a) if, during the Employment Period, the Company terminates Executive’s employment
for any reason other than for Good Cause or Disability, or Executive terminates for Good Reason.
In any such case:

               (i) Accrued Benefits. Executive shall be entitled to any:

                    (A) incremental Base Salary at the rate then in effect otherwise payable through the
Termination Date to the extent not previously paid, which shall be paid in a lump sum in cash
within thirty (30) calendar days from the Termination Date;

                    (B) Annual Bonus which has been earned and accrued but remains unpaid which shall be paid in
the same form and at the same time as such Annual Bonus, if any, is paid to other senior executive
officers as further provided under Section 5(a)(ii)(B);

                    (C) benefits provided for in Section 3(b) which have accrued up to and including the
Termination Date, subject to the terms and conditions of the welfare and benefit plans referenced
in Section 3(b); and

                    (D) reimbursement of reasonable expenses incurred up to and including the Termination Date
under the terms of Section 3(c).

               (ii) Continuation of Benefits. Provided that Executive has executed and delivered to
the Company a Release and Waiver of Claims within 60 days after the Termination Date and Executive
refrains from revoking, rescinding or otherwise repudiating such Release and Waiver of Claims for
all applicable periods during which Executive may revoke it (failure to provide such a release
shall result in the forfeiture of all benefits under this subparagraph (ii)), during the period
ending on the earlier of the last day of the Employment Period as set forth in Section 1 above, a
breach by Executive of any obligation set forth in Section 6, or twenty-four (24) months following
Termination of Employment by the Company under Section 5(a), Executive shall be entitled to
continue to receive:

                    (A) an amount equal to Executive’s Base Salary then in effect, which shall be paid in equal
monthly or more frequent installments, as determined by the

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Company on the same schedule and in accordance with the Company’s regular payroll policies for
senior executives, commencing thirty days after the Termination Date;

                    (B) an Annual Bonus, if any, determined as follows:

                         (i) if the other senior executive officers are not entitled to an Annual Bonus payment with
respect to the fiscal year of the Company, then Executive shall not be paid an Annual Bonus for
such year; or

                         (ii) if the other senior executive officers are entitled to an Annual Bonus payment with
respect to the fiscal year of the Company, then, at the discretion of the Compensation Committee,
the Executive may be paid a portion of the Annual Bonus that otherwise would have been payable to
Executive had he remained employed throughout such year, in the same form and on the same date(s)
as payment is made to the other senior executive officers, in an amount prorated by multiplying
said amount by a fraction where the numerator equals the number of complete months in such partial
year during which Executive was employed and the denominator equals twelve; and

                    (C) subject to the terms and conditions of the welfare and benefit plans referenced in Section
3(b), any benefits provided for in Section 3(b) under substantially the same terms and conditions,
including the cost, if any, to Executive, subject to generally applicable changes to the level, and
cost, of coverage that may be made with respect to senior executive officers, provided that such
continuation shall not be required hereunder to the extent that Executive is entitled, absent any
individual waivers or other arrangements, to receive during such period the same type of coverage
from another employer or recipient of Executive’s services.

          (b) Death or Disability.

               (i) Accrued Benefits. Executive or his estate or beneficiaries, hereunder, as
appropriate, in the event of the death of the Executive, shall be entitled to the severance
benefits specified in this Section 5(b) if, during the Employment Period, Executive’s employment
with the Company terminates as a result of Executive’s death or Disability under Section 4(a)(i) or
4(a)(ii). In either such case, Executive shall be entitled to any (i) incremental Base Salary,
(ii) Annual Bonus which has been earned and accrued but remains unpaid which shall be paid in the
same form and at the same time as such Annual Bonus, if any, is paid to other senior executive
officers, (iii) benefits provided for in Section 3(b) which have accrued up to and including the
Termination Date, subject to the terms and conditions of the welfare and benefit plans referenced
in Section 3(b), and (iv) reimbursement of reasonable expenses incurred up to and including the
Termination Date under the terms of Section 3(c). After the Termination Date, Executive shall no
longer be eligible to participate in any of the welfare or benefit plans referenced in Section
3(b), except to the extent and on the terms that participation in any such plan by former employees
is expressly provided for by the terms of such plan.

               (ii) Continuation of Benefits. In addition to the Accrued Benefits payable under
Section 5(b)(i), Executive or his estate or beneficiaries, hereunder, as appropriate,

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in the event of the death of the Executive, shall be entitled to six (6) months’ Base Salary
payable in equal monthly or more frequent installments, as determined by the Company on the same
schedule and in accordance with the Company’s regular payroll policies for senior executives,
commencing thirty days after the Termination Date. Further, Executive’s surviving spouse, if any,
and minor children shall be eligible to continue to participate in the Company’s health insurance
programs, at the expense of the Company, for six (6) months after the death or Disability of
Executive. After such six (6) month period, Executive’s dependents shall be entitled to
participate in any insurance program of the Company to the extent required by federal or state law.
No provision of this Agreement shall limit any of Executive’s (or his beneficiaries’) rights under
any insurance, pension or other benefit programs of the Company for which Executive shall be
eligible at the time of such death or disability.

          (c) Discharge for Good Cause or Resignation. If Executive’s employment with the
Company is terminated by Executive on a voluntary basis under Section 4(a)(iii) or is terminated by
the Company for Good Cause under Section 4(a)(iv), Executive shall be entitled to (i) payment of
incremental Base Salary only through the Termination Date and thereafter such salary shall end and
cease to be payable, (ii) at the discretion of the Compensation Committee, payment of any Annual
Bonus which has been earned and accrued but remains unpaid which shall be paid in the same form and
at the same time as such Annual Bonus, if any, is paid to other senior executive officers, but in
no event shall any portion of any subsequent Annual Bonus be deemed to have been earned and
accrued, (iii) receive any benefits provided for in Section 3(b) which have accrued up to and
including the Termination Date, subject to the terms and conditions of the welfare and benefit
plans referenced in Section 3(b), and (iv) reimbursement of reasonable expenses incurred up to and
including the Termination Date under the terms of Section 3(c). After the Termination Date,
Executive shall no longer be eligible to participate in any of the welfare or benefit plans
referenced in Section 3(b), except to the extent and on the terms that participation in any such
plan by former employees is expressly provided for by the terms of such plan.

          (d) No Further Obligations. Except as expressly set forth in this Section 5,
Executive shall not be entitled to any other payments or benefits under this Agreement as a result
of the termination of Executive’s employment.

     6. Restrictive Covenants.

          (a) Non-Competition. While employed by the Company and for a period of twenty-four
(24) months after ceasing to be so employed (the “Restricted Period”) for whatever reason,
Executive shall not, directly or indirectly, own, manage, operate, control or participate in the
ownership, management, operation or control of, or be connected as an officer, partner, director,
consultant or other position, or have any financial interest in with (i) any steel service center
or distributor conducting business within those portions of the United States wherein the Company
is conducting business on the Termination Date, or (ii) a business engaged in direct competition
with any other significant business carried on by the Company on the Termination Date. In no event
shall ownership of less than five (5) percent of the equity of a corporation, limited liability
company or other business entity, standing alone, constitute a violation hereof.

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          (b) Non-Solicitation. During the Restrictive Period, Executive shall not directly,
indirectly or through an affiliate: (i) solicit, induce, divert, or take away or attempt to
solicit, induce, divert or take away any customer, distributor, or supplier of the Company;
(ii) solicit, induce, or hire or attempt to solicit, induce, or hire any employee of the Company or
any individual who was an employee of the Company on the Termination Date and who has left the
employment of the Company after the Termination Date within one year of the termination of such
employee’s employment with the Company, or (iii) in any way directly or indirectly interfere with
such relationships.

          (c) Confidentiality.

               (i) Executive shall keep in strict confidence, and shall not, directly or indirectly, at any
time while employed by the Company or after ceasing to be so employed, disclose, furnish, publish,
disseminate, make available or, except in the course of performing his duties of employment
hereunder, use for his benefit or the benefit of others any Confidential Information. Executive
specifically acknowledges that all Confidential Information, in whatever media or form maintained,
and whether compiled by the Company or Executive, (1) derives independent economic value from not
being readily known to or ascertainable by proper means by others who can obtain economic value
from its disclosure or use, (2) that reasonable efforts have been made by the Company to maintain
the secrecy of such information, (3) that such information is the sole property of the Company, and
(4) that any disclosure or use of such information by Executive while employed by the Company
(except in the course of performing his duties and obligations hereunder for the Company) or after
ceasing to be so employed shall constitute a misappropriation of the Company’s trade secrets.

               (ii) Notwithstanding the provisions of Section 6(c)(i), Executive may disclose the
Confidential Information to anyone outside of the Company with the Company’s express written
consent, or Confidential information that: (i) is at the time of receipt or thereafter becomes
publicly known through no wrongful act of Executive; or (ii) is received from a third party not
under an obligation to keep such information confidential and without breach of this Agreement.

               (iii) In addition to the above provisions of Section 6(c), all memoranda, notes, lists,
records and other documents (and all copies thereof) made or compiled by Executive or made
available to Executive concerning the business of the Company will be delivered to the Company at
any time on request.

     7. Binding Agreement; Successors. This Agreement shall inure to the benefit of and be
binding upon Executive’s personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. If Executive should die while any amounts would still
be payable to him hereunder, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to Executive’s spouse, or if is spouse does not survive
him, to Executive’s estate. This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of the Company, including, without limitation, any person acquiring directly
or indirectly all or substantially all of the assets of the Company, whether by merger,
consolidation, sale or otherwise (and such successor shall thereafter be

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deemed the “Company” for the purposes of this Agreement). The Company shall require any such
successor to assume and agree to perform this Agreement.

     8. Notice. All notices, requests and other communications under this Agreement shall
be in writing and shall be deemed to have been duly given (a) when hand delivered, (b) one business
day after being sent by recognized overnight delivery service, or (c) three business days after
being sent by registered or certified mail, return receipt requested, postage prepaid, and in each
case addressed as follows (or addressed as otherwise specified by notice under this Section):

	 	(i)	 	If to the Company, to:
	 
	 	 	 	Olympic Steel, Inc.

5096 Richmond Road

Bedford, Ohio 44146
	 
	 	 	 	With a copy to:
	 
	 	 	 	Olympic Steel, Inc.

5096 Richmond Road

Bedford, Ohio 44146

Attention: Chairman, Compensation Committee
	 
	 	(ii)	 	If to Executive, to:
	 
	 	 	 	Michael D. Siegal

921 West Hill Drive

Gates Mills, Ohio 44040

     9. Withholding. The Company may withhold from any amounts payable under or in
connection with this Agreement all federal, state, local and other taxes as may be required to be
withheld by the Company under applicable law or governmental regulation or ruling.

     10. Amendments; Waivers. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing, and is signed by
Executive and an officer of the Company specifically designated by the Board of the Company or its
Compensation Committee to execute such writing. No delay in exercising any right, power or
privilege hereunder shall operate as a waiver thereof. No waiver by either party hereto at any
time of any breach by the other 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.

     11. Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Ohio, without giving effect to the conflict
of law principles of such State.

     12. Equitable Relief. Executive and the Company acknowledge and agree that the
covenants contained in Section 6 are of a special nature and that any breach, violation or evasion

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by Executive of the terms of Section 6 will result in immediate and irreparable injury and
harm to the Company, for which there is no adequate remedy at law, and will cause damage to the
Company in amounts difficult to ascertain. Accordingly, the Company shall be entitled to the
remedy of injunction, as well as to all other legal or equitable remedies to which the Company may
be entitled (including, without limitation, the right to seek monetary damages), for any breach,
violation or evasion by Executive of the terms of Section 6.

     13. 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. In the event that any provision of Section
6 is found by a court of competent jurisdiction to be invalid or unenforceable as against public
policy, such court shall exercise its discretion in reforming such provision to the end that
Executive shall be subject to such restrictions and obligations as are reasonable under the
circumstances and enforceable by the Company.

     14. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original but all of which together shall constitute one and the same
instrument.

     15. Headings; Definitions. The headings contained herein are for reference purposes
only and shall not in any way affect the meaning or interpretation of this Agreement. Certain
capitalized terms used in this Agreement are defined on Schedule A attached hereto.

     16. No Assignment. This Agreement may not be assigned by either party without the
prior written consent of the other party, except as provided in Section 7.

     17. Entire Agreement; No Other Arrangements. This Agreement contains the entire
agreement between the parties with respect to the employment of Executive and supersedes any and
all other agreements, either oral or in writing, with respect to the employment of Executive, with
the exception of the Management Retention Agreement entered into between the Company and Executive
on or about April 20, 2000, as amended, which shall remain in full force and effect. In the event
of any conflict between the Agreement and the Management Retention Agreement, the terms of the
Management Retention Agreement shall prevail. Executive acknowledges that, in executing this
Agreement, he has not relied on any representations not set forth in this Agreement. Executive
represents that his employment by the Company will not violate any other agreement by which
Executive is bound.

     18. Separation from Service. All references to “termination of employment” or forms
and derivations thereof shall refer to events which constitute a “separation from service” as
defined in Treasury Regulation §1.409A-1(h) and means the Executive’s separation from service with
the Company and all members of the controlled group, for any reason, including without limitation,
quit, discharge, or retirement, or a leave of absence (including military leave, sick leave, or
other bona fide leave of absence such as temporary employment by the government if the period of
such leave exceeds the greater of six months or the period for which the Executive’s right to
reemployment is provided either by statute or by contract). “Separation from service” also means
the permanent decrease in the Executive’s service for the Company and all controlled group members
to a level that is no more than 20% of its prior level. For this

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purpose, whether a “separation from service” has occurred is determined based on whether it is
reasonably anticipated that no further services will be performed by the Executive after a certain
date or that the level of bona fide services the Executive will perform after such date (whether as
an employee or as an independent contractor) would permanently decrease to no more than 20% of the
average level of bona fide services performed (whether as an employee or an independent contractor)
over the immediately preceding 36-month period (or the full period of services if the Executive has
been providing services less than 36 months).

     19. 6-Month Delay. Notwithstanding anything to the contrary contained in this
Agreement, and solely to the extent that any payment or benefit payable pursuant to this Agreement
is not exempt from the requirements of Code Section 409A, if the Executive is a “key employee” (as
defined under Internal Revenue Code Section 416(i) without regard to paragraph (5) thereof) on the
date of a separation from service, and the Company’s stock is publicly traded on an established
securities market or otherwise, any such non-exempt payments under this Agreement which would
otherwise have been payable within the first six (6) months shall be paid in the seventh (7th)
month following Executive’s Termination Date. Notwithstanding the foregoing, payments delayed
pursuant to this paragraph shall commence as soon as practicable following the date of death of the
Executive prior to the end of the six (6) month period but in no event later than ninety (90) days
following the date of death.

     20. Reimbursement and In-Kind Benefits. Any reimbursement of expenses or any in-kind
benefits provided under this Agreement, that are subject to and not exempt from Code Section 409A,
shall also be subject to the following additional rules: (i) any reimbursement of eligible expenses
or in-kind benefits shall be paid as they are incurred (but, solely to the extent not exempt from
Code Section 409A, not prior to the end of the six-month period following his termination of
employment); provided that in no event shall any such payment be made later than the end of the
calendar year following the calendar year in which such expense was incurred; (ii) the amount of
expenses eligible for reimbursement, or in-kind benefits provided, during any calendar year shall
not affect the amount of expenses eligible for reimbursement, or in-kind benefits to be provided,
during any other calendar year; and (iii) the right to reimbursement or in-kind benefits shall not
be subject to liquidation or exchange for another benefit.

     21. Code Section 409A. It is intended that the payments and benefits provided under
this Agreement shall either be exempt from application of, or comply with, the requirements of
final regulations under Code Section 409A. This Agreement shall be construed, administered, and
governed in a manner that effects such intent, and the Company shall not take any action that would
be inconsistent with such intent and shall make payments in such time and manner as the Company
determines would minimize or reduce the risk of adverse taxation under Code Section 409A. In the
event that the Company reasonably determines that any compensation or benefits payable under this
Agreement may be subject to taxation under Code Section 409A, the Company, after consultation with
the Executive, shall have the authority to adopt, prospectively or retroactively, such amendments
to this Agreement or to take any other actions it determines necessary or appropriate to (a) exempt
the compensation and benefits payable under this Agreement from Code Section 409A or (b) comply
with the requirements of Code Section 409A. In no event, however, shall this section or any other
provisions of this Agreement be construed to require the Company to provide any gross-up for the
tax consequences of any provisions of, or

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payments under, this Agreement and the Company shall have no responsibility for tax
consequences to Executive (or his or her beneficiary) resulting from the terms or operation of this
Agreement. For purposes of Code Section 409A, any payments or benefits under this Agreement are
intended to constitute the right to a series of separate payments or benefits.

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

	 	 	 	 	 
	 	OLYMPIC STEEL, INC.

 	 
	 	By:  	/s/ Richard T. Marabito
 	 
	 	 	Name:  	Richard T. Marabito 	 
	 	 	Title:  	Chief Financial Officer 	 

	 	 	 	 	 
	 	 	 
	 	                                                   /s/ Michael D. Siegal
 	 
	 	MICHAEL D. SIEGAL 	 
	 	(“Executive”) 	 

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Schedule A

Certain Definitions

     As used in this Agreement, the following capitalized terms shall have the following meanings:

“Affiliate” of a specified entity means an entity that directly, or indirectly through one
or more intermediaries, controls, or is controlled by, or is under common control with, the
entity specified for purposes of Code Section 414(b) or (c).

“Code” means the Internal Revenue Code of 1986, as amended from time to time.

“Confidential Information” means confidential business information of the Company and its
customers and vendors, without limitation as to when or how Executive may have acquired such
information. Such Confidential Information shall include, without limitation, the Company’s
sales figures, profit or loss figures or other information related to the Company’s internal
financial statements, customers, clients, suppliers, vendors and product information,
sources of supply, customer lists or other information, selling and servicing methods and
business techniques, product development plans, sales and distribution information, business
plans and opportunities, or corporate alliances and other information concerning the
Company’s actual or anticipated business or products, or which is received in confidence by
or for the Company from any other person.

“Disability” means the inability of Executive for a continuous period of ninety (90) days or
for one hundred and eighty (180) days in the aggregate during any twelve (12) month period
to perform any material portion of the duties of his position hereunder on an active
full-time basis by reason of a disability condition. The Company and Executive acknowledge
and agree that the material duties of Executive’s position are unique and critical to the
Company and that a disability condition that causes Executive to be unable to perform the
essential functions of his position under the circumstances described above will constitute
an undue hardship on the Company. Notwithstanding the foregoing, Executive shall not be
disabled provided that all of the following conditions have been satisfied:

          (a) after receipt of the Company’s written notice of intent to terminate due to
Disability, Executive shall have the right within ten (10) days to dispute the Company’s
ability to terminate him under this section;

          (b) within ten (10) days after exercising such right, Executive shall submit to a
physical exam by the Chief of Medicine of any major hospital in the metropolitan Cleveland
area;

          (c) such physician shall issue his written statement to the effect that in his opinion,
based upon his diagnosis, Executive is capable of resuming his employment and devoting his
full time and energy in discharging his duties within ten (10) days after the date of such
statement; and

A-1

 

          (d) the Executive returns to work on a full-time basis and devotes his energy in
discharging his duties.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder, as such law, rules and regulations may be amended from time to time.

“Good Cause” means a reasonable determination by the Board made in good faith (without the
participation of Executive) of the Company, pursuant to the exercise of its business
judgment, that any one of the following events has occurred:

          (a) Executive is found by the Board to have engaged in (1) willful misconduct, (ii)
willful or gross neglect, (iii) fraud, (iv) misappropriation, or (v) embezzlement in the
performance of his duties hereunder;

          (b) Executive has materially breached the provisions of Section 6 or any other material
provision of this Agreement and fails to cure such breach within ten (10) days following
written notice from the Company specifying such breach which notice from the Company shall
be provided within thirty (30) days after said breach;

          (c) Executive is found by the Board to have failed to provide reasonable cooperation
with any federal government or other governmental regulatory investigation, the
reasonableness of such cooperation to be determined by reference to statutory and regulatory
authorities, Federal Sentencing Guidelines, and relevant case law interpretations;

          (d) Executive signs or certifies statements required to be made pursuant to
Sarbanes-Oxley Sections 302 and 906, or other similar rules or regulations then in effect,
which turn out to be false or inaccurate in any material respect; provided, however, that
the Board has made a reasonable determination in good faith that the Executive knew or
should have known that such statements were false or inaccurate in any material respect;

          (e) Executive has been indicted by a state or federal grand jury with respect to a
felony, a crime of moral turpitude or any crime involving the Company (other than pursuant
to actions taken at the direction or with the approval of the Board) and a special committee
of the Board, chaired by an outside director appointed by the Chair of the Audit Committee,
considers the matter, makes a recommendation to the Board to terminate Executive’s
employment for Good Cause, and the Board concurs in that recommendation; or

          (f) Executive is found by the Board to have engaged in a material violation of the Code
of Conduct of the Company as then in effect.

“Good Reason” means, without Executive’s consent: (i) a material diminution in Executive’s
Base Salary; (ii) a material diminution in Executive’s authority, duties, or
responsibilities; (iii) a material change in the geographic location at which Executive must
perform services; (iv) a material diminution in the authority, duties, or

A-2

 

responsibilities of the supervisor to whom the Executive is required to report, including a
requirement that the Executive report to a corporate officer or employee instead of
reporting directly to the Board of Directors of the Company; (v) a material diminution in
the budget over which the Executive retains authority; or (vi) any other action or inaction
that constitutes a material breach by the Company of this Agreement; provided, however, that
“Good Reason” shall not be deemed to exist unless: (A) the Executive has provided notice to
the Company of the existence of one or more of the conditions listed in (i) through (vi)
within 90 days after the initial occurrence of such condition or conditions; and (B) such
condition or conditions have not been cured by the Company within 30 days after receipt of
such notice.

“Release and Waiver of Claims” means a written release and waiver by Executive, to the
fullest extent allowable under applicable law and in form reasonably acceptable to the
Company, of all claims, demands, suits, actions, causes of action, damages and rights
against the Company and its Affiliates whatsoever which he may have had on account of the
termination of his employment, including, without limitation, claims of discrimination,
including on the basis of sex, race, age, national origin, religion, or handicapped status,
and any and all claims, demands and causes of action for severance or other termination pay.
Such Release and Waiver of Claims shall not, however, apply to the obligations of the
Company arising under this Agreement, any indemnification agreement between Executive and
the Company, any retirement plans, any stock option agreements, COBRA Continuation Coverage
or rights of indemnification Executive may have under the Company’s Articles of
Incorporation or Code of Regulations (or comparable charter document) or by statute.

“Sarbanes-Oxley” means the Sarbanes-Oxley Act of 2002.

A-3exv10w29

EXHIBIT 10.29

5096 Richmond Road

Cleveland, Ohio 44146

(216) 292-3800

(216) 292-3974/FAX

January 7, 2010

Michael D. Siegal

921 West Hill Drive

Gates Mills, Ohio 44040

Dear Michael:

     Contemporaneous with the receipt of this letter, you (the “Executive”) are receiving your
Amended and Restated Employment Agreement (the “Agreement”) with Olympic Steel, Inc. (the
“Company”), commencing on January 1, 2010. Capitalized terms not otherwise defined in this
letter have the meanings given to them in the Agreement.

     Under Section 3(a) of the Agreement, your Base Salary from January 1, 2010 through the
Employment Period is Seven Hundred and Fifty Thousand Dollars ($750,000.00) per year. Pursuant
to Sections 3(a) and 10 of the Agreement, the base salary amount may be adjusted below the Base
Salary pursuant to a written agreement between the Executive and the Company. Additionally,
written consent by the Executive to a reduction in Base Salary will not constitute a Good
Reason condition under the Agreement or give rise to any payment under Section 5 of the
Agreement.

     In lieu of the Base Salary specified in Section 3(a) of the Agreement and pursuant to
Sections 3(a) and 10 of the Agreement, the Executive and the Company agree to a Base Salary
commencing January 1, 2010 of Five hundred seventy one thousand, seven hundred, twenty five
dollars ($571,725.00) per year (the “Current Base Salary). Your Current Base Salary may be
increased on such date as economic conditions warrant as decided by the Compensation Committee
of the Board of Directors of the Company in its sole discretion.

     By signing below you acknowledge, understand and agree to the reduction in Base Salary to
the Current Base Salary and that such reduction does not constitute a Good Reason condition,
effective as of the execution date of the Agreement.

	 	 	 	 	 	 	 	 	 	 	 
	EXECUTIVE	 	 	 	COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Michael D. Siegal	 	 	 	By:	 	/s/ Richard T. Marabito	 	 
	 	 	 	 	 	 	 	 	 
	Michael D. Siegal	 	 	 	 	 	Olympic Steel Inc.	 	 
	 

	 	 	 	 	 	Name:
	 	Richard T. Marabito	 	 
	 

	 	 	 	 	 	Title:
	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date: 1/7/10	 	 	 	Date: 1/7/10

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