SCHNITZER STEEL INDUSTRIES, INC. 3200 NW Yeon AvenueP.O. Box 10047Portland, Oregon ###-###-#### Phone(503) 224-9900Fax(503) 321-2649

 

satisfied the 90 days of service during the Plan year. Further participation is subject to the terms and conditions of the AICP Plan.

 

Stock Options:

The period within which Employee may exercise any SSI stock options which are outstanding but unexercised on the Rehire Date is extended to the earlier of (1) 12 months following the date of Employee’s retirement from employment by the Company following the Rehire Date and (b) the 10th anniversary of the grant date of the option.  All other provisions of the Company’s 1993 Stock Incentive Plan, as amended, and the award agreements for the Employee’s options shall continue and govern the options.

 

Long-Term Incentive Program:

As a member of our senior management team, you will be recommended to participate in the Company’s Long-Term Incentive Program (“LTIP”).  However, actual participation and award levels are subject to approval by the Compensation Committee of the Board of Directors, are not automatic in nature and cannot be guaranteed until approved.  Further, participation is conditioned upon entering into the Company’s participation agreements that set forth the rules of the LTIP.

 

Annual Salary Reviews:

Normally, annual salary reviews are conducted in the second calendar quarter of each year.  You will be eligible for a salary review, provided you work a minimum of one full quarter prior to the review cycle.  Increases, if any, are based on individual performance and Company financial considerations; therefore salary increases are not guaranteed.

 

Performance Reviews:

Performance reviews are normally conducted at the end of the fiscal year.  At this time, individual performance and goals from the prior year are reviewed and new individual goals are developed for the upcoming year.

 

Health, Life, and Disability Benefits:

 

You will be eligible for health (including the executive medical plan) and life insurance benefits as of July 1, 2009. You will be eligible for disability benefits as of September 1, 2009. You will be provided with further details regarding insurance coverages and employee premiums.

 

401(k):

You will be eligible to participate in the 401(k) plan effective July 1, 2009.  You will be provided with further details regarding plan benefits.

 

Paid Time Off (“PTO”):

PTO will accrue as per the timeframes described in the Company’s Human Resource Policy #525.  Given that you are being rehired within six months of your earlier retirement, you will retain your original hire date of February 9, 1965. As such, you will accrue PTO based on your length of service from your original hire date. As additional consideration, the Company will provide to you a starting balance of PTO in the amount of 120 hours.

 

SSI SERBP and other retirement benefits:

You will continue to be an eligible participant in the Company’s Supplemental Executive Retirement Bonus Plan. Your benefit under the Company’s SERBP will not be increased or reduced by virtue of your employment under this agreement, and the Company will reimburse you,