JORGENSEN EARLE M CO /DE/
EX-10.25
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<TYPE>EX-10.25
<SEQUENCE>3
<FILENAME>a04-9436_1ex10d25.htm
<DESCRIPTION>EX-10.25
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<p align="right" style="font-weight:bold;margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit 10.25</font></b></p>

<p align="right" style="font-weight:bold;margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="right" style="font-weight:bold;margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">[Execution
Copy]</font></b></p>

<p align="right" style="font-weight:bold;margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">TERMINATION
OF MERGER AGREEMENT AND EXCHANGE AGREEMENT</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS TERMINATION OF
MERGER AGREEMENT AND EXCHANGE AGREEMENT (this &#147;Agreement&#148;) is dated as of July
30, 2004, by and between Earle M. Jorgensen Holding Company, Inc. (&#147;Holding&#148;)
and Earle M. Jorgensen Company (&#147;Company&#148;).&#160;
All terms not otherwise defined herein shall have such meanings as are
set forth in the Merger Agreement (as defined below).</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, Holding, the
Company and EMJ Metals LLC entered into that certain Merger Agreement (the
&#147;Merger Agreement&#148;) dated as of December 18, 2003, pursuant to which the
parties agreed, among other things, that at the Effective Time (a) Holding
would be merged with and into EMJ Metals LLC and the separate corporate
existence of Holding shall cease and EMJ Metals LLC shall be the surviving
entity and (b) all issued and outstanding shares of Holding&#146;s common stock,
Holding&#146;s 13% Cumulative Preferred Stock, $0.01 par value, and Holding&#146;s
Variable Rate Cumulative Preferred Stock, $0.01 par value would be converted
into shares of common stock (the &#147;Common Stock&#148;), par value $0.001 per share of
the Company;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, Holding, the
Company and certain stockholders and noteholders of Holding entered into that
certain Exchange Agreement (the &#147;Exchange Agreement&#148;) dated as of December 18,
2003, pursuant to which the parties agreed, among other things, that KIA IV
would exchange its Series A Variable Rate Senior Notes and each of its Holding
Warrants for Common Stock;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, Section 12.1 of the
Merger Agreement provides, among other things, that the Company or Holding may
terminate the Merger Agreement if the Merger shall not have been consummated by
May 31, 2004;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, Section 7.1 of
the Exchange Agreement provides that the Exchange Agreement shall terminate
upon the earlier to occur of (a) the Effective Time and (b) termination of the
Merger Agreement;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, Section 9.5 of
the Merger Agreement provides, among other things, that from the date of the
Merger Agreement through the Effective Time, neither Holding nor the Company
shall declare, set aside or pay any dividend or other distribution or payment
in cash, stock or property in respect of its shares of capital stock;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, Section 9.6 of
the Merger Agreement provides that KIA IV agrees to waive until the Effective
Time, or if earlier, the date that the Merger Agreement is terminated its right
to declare Holding in default and accelerate payment of all amount due on the
Series A Variable Rate Senior Notes on account of the failure to pay any
interest or any other amounts due from December 1, 2003 through the Effective
Time.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, Holding and the
Company collectively desire to terminate the Merger Agreement with the effect
of also terminating the Exchange Agreement.</font></p>

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<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in
consideration of the foregoing premises and for other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, the
parties hereby agree as follows:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination of Merger Agreement</u>.&#160; Pursuant to Section 12.1 of the Merger
Agreement, the parties hereby agree that, effective immediately, the Merger
Agreement is terminated in its entirety, shall be of no further force or effect
and the rights and obligations of all parties thereto will be terminated and
cancelled, including, without limitation, the covenants contained in Section
9.5 and Section 9.6 of the Merger Agreement.</font></h1>

<h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></h1>

<h1 align="left" style="font-weight:normal;margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Counterparts</u>.&#160;
This Agreement may be executed in two 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.</font></h1>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Signature page follows]</font></b></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the
parties hereto have executed this Agreement to be effective as of the date
first written above.</font></p>

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<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.22%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.78%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EARLE M.
  JORGENSEN COMPANY</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.22%;">
  <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.78%;">
  <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.22%;">
  <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.78%;">
  <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
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  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.22%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.52%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="32%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:32.98%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ William S.
  Johnson</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.28%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.22%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.52%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>
  </td>
  <td width="32%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:32.98%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice President
  and Chief Financial Officer</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.28%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
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  <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.78%;">
  <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
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  <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.78%;">
  <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
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  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.22%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.78%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EARLE M.
  JORGENSEN HOLDING COMPANY, INC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.22%;">
  <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.78%;">
  <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.22%;">
  <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="45%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:45.78%;">
  <p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.22%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">:</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.52%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="32%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:32.98%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ William S.
  Johnson</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.28%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.22%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.52%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>
  </td>
  <td width="32%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:32.98%;">
  <p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice President
  and Chief Financial Officer</font></p>
  </td>
  <td width="9%" valign="top" style="padding:0in .7pt 0in .7pt;width:9.28%;">
  <p align="left" style="font-size:1.0pt;margin:0in 0in .0001pt;text-align:left;">&nbsp;</p>
  </td>
 </tr>
</table>

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