EXHIBIT 10.19
                                                                   -------------

                        SCHNITZER STEEL INDUSTRIES. INC.

                              AMENDED AND RESTATED

                     ECONOMIC VALUE ADDED ("EVA") BONUS PLAN

                          EFFECTIVE DATE: JULY 15, 2004

The following are the terms of the Schnitzer Steel Industries, Inc. (the
"COMPANY", "SCHNITZER STEEL" or "SSI") EVA ("ECONOMIC VALUE ADDED") Bonus Plan
(the "PLAN") for certain employees of the Company and its wholly-owned
subsidiaries, including Cascade Steel Rolling Mills, Inc. ("CASCADE STEEL") (but
excluding its subsidiary, Pick-N-Pull Auto Dismantlers, which is subject to a
separate EVA Bonus Plan), as amended and restated, effective July 15, 2004.
References to the "COMPANY", "SCHNITZER STEEL" or "SSI" shall be deemed to refer
instead to a wholly owned subsidiary as the context requires for a particular
employee, employed by such subsidiary.

A.     1.     Purpose of the Bonus Plan
              -------------------------

              In order to align employee incentives with shareholder and lender
              interests, incentive compensation will reward the creation of
              value for the Company. This Plan will tie incentive compensation
              to Economic Value Added ("EVA") and, thereby, reward participants
              for creating value and also "feel" the effect of a reduction in
              value.

       2.     Eligibility
              -----------

              Eligibility for the Plan is limited to regular, full time and part
              time employees (as determined by the Human Resources Policy #250
              Employee Definition) and its wholly owned subsidiaries who have
              worked for the Company for a minimum of 90 days, exclusive of the
              employees subject to a collective bargaining agreement, unless
              such agreement expressly provides otherwise (collectively, the
              "EMPLOYEES" or "PARTICIPANTS"). Newly hired regular, full time or
              part time Employees who meet the criteria for participation are
              eligible to earn their first bonus based upon their EVA Earnings
              (as defined below) from their date of hire through the end of the
              applicable fiscal year, provided they meet the minimum duration of
              employment as stated above. The Plan Administrator shall designate
              the EVA Center for each Employee (which may be determined by
              category, e.g., Employee's job designation). An Employee may be in
              one or more EVA Centers (prorata). The Company's Human Resources
              Department shall maintain the list of EVA Centers.

       3.     Bonus Calculation
              -----------------

       (a)    The bonus earned for Participants during a Plan year will be
              determined based upon the applicable fiscal year's actual EVA of
              the Participant's EVA Center(s). EVA is defined as Net Operating
              Profit After Taxes ("NOPAT") - Capital Charge (see Attachment A).

              A Participant's initial declared bonus (the "EVA BONUS
              DECLARATION" or "BONUS") will be computed as follows:

              EVA
              BONUS  =                EVA  X      TARGET    X    BONUS
              DECLARATION             EARNINGS    BONUS          MULTIPLE

              To better understand how an EVA Bonus will be declared, see the
              example below.
<PAGE>



       (b)    The BONUS MULTIPLE is determined by the EVA achieved for the
              fiscal year ("ACTUAL EVA") compared to the EVA objective for that
              year. The Bonus Multiple is mathematically determined as follows:

              Bonus Multiple = 1 + Actual EVA - Target EVA
                                   -----------------------
                                     EVA Leverage Amount
                                      (the "INTERVAL")

       (c)    The EVA LEVERAGE AMOUNT (also called the "INTERVAL") is the change
              in EVA over and above the Target EVA required to double a bonus
              (i.e., change from a 1.0 to a 2.0 times Bonus Multiple) or the
              shortfall below Target EVA needed to change from a 1.0 to a 0.0
              times Bonus Multiple. The EVA Leverage Amount varies by EVA
              Center, based on the expected volatility of the operating results.

              Expected improvement in EVA and EVA Leverage Amounts are
              determined during the calibration period, normally every two to
              three years or when there is a material change in the Company's
              business or Capital structure, which is determined at the sole
              discretion of the Plan Administrator or with respect to Executive
              Officers, the Compensation Committee of the Company's Board of
              Directors (the "COMPENSATION COMMITTEE").

       (d)    EVA TARGET BONUS. Eligible Participants will have a Target Bonus
              expressed as a percentage of their earnings in the fiscal year.
              The Target Bonus percentage varies by level of responsibilities
              within the Company. The Human Resources Department maintains the
              list of Employees and their EVA Target Bonus Percentages.

              The Target Bonus for each employee is determined by multiplying
              the Employee's EVA Earnings (defined below) during the fiscal year
              by the Target Bonus percentage.

       (e)    EVA FISCAL YEAR EARNINGS (EVA EARNINGS) are those earnings
              described in Attachment B. Any compensation not listed on
              Attachment B is specifically excluded from EVA Earnings,
              including, without limitation, commissions, relocation payments,
              auto allowances, other fringe benefits and extraordinary payments.
              EVA Earnings exclude EVA Bonus payments under the Plan.

       (f)    EXAMPLE: The following is an example of an EVA Bonus Declaration
              for a fictitious "Employee A":

              EVA Earnings = $35,000
              EVA Target Bonus = 10% of EVA Earnings of $3,500
              EVA Leverage or Interval = $2,000,000
              Target EVA for fiscal 200X = $500,000
              Actual EVA for fiscal 200X = $650,000
              Bonus Multiple =
                             1 + (650,000 - 500,000)
                                 -------------------
                                      2,000,000      = 1.075

              EVA Bonus Declaration =  EVA Earnings x Target Bonus x Bonus
                                       Multiple
                                    =  $35,000 x 10% x 1.075
                                    =  $3,763

       4.     Performance Versus Target
              -------------------------

              The Plan has significant upside, as well as downside performance
              potential. The incentive earnings are based on EVA improvement of
              the Employees' assigned EVA Center(s). If the EVA Center

                                      -2-
<PAGE>

              achieves its Targeted level of EVA improvement, the Employees
              within that EVA Center will achieve their EVA Target Bonus
              Percentage or 1.0 times their Bonus Multiple. If the EVA Center
              exceeds its Targeted level of improvements its Employees will earn
              a multiple greater then 1.0. Conversely, if the EVA Center falls
              below its EVA Target, the Employees will earn a multiple that is
              less than 1.0.

              The Plan is designed to provide the Participants with significant
              upside opportunity, but they also will participate in any dramatic
              negative changes in EVA.

       5.     Bonus Caps and Floor
              --------------------

              In order to protect the Plan Participants from SIGNIFICANT swings
              in performance the Plan is designed with Caps and Floors.
              Generally, the Cap and Floor will vary by EVA Center and Employee
              job classification. The following are the Cap and Floor details
              for the respective business units:

       (a)    ALL SSI EVA CENTERS, WITH THE EXCEPTION OF CASCADE STEEL (GRADES 9
              AND ABOVE) AND PICK-N-PULL AUTO DISMANTLERS. For Participants with
              a salary grade of 9 or above, EVA Bonus Declarations under the
              Plan will not exceed 3x a Participant's EVA Target Bonus (the
              "CAP"), in other words, 300% of Target Bonus and in the event of
              negative performance, will not be more than - 1.0x a Participant's
              EVA Target Bonus (the "FLOOR"), being negative 100% of Target
              Bonus. The Cap and Floor only limit the annual EVA Bonus
              Declaration, but do not limit the Target EVA for the succeeding
              year.

              Earnings cannot be taken away; however, it is possible to earn a
              "negative bonus". A negative bonus will result if the actual EVA
              in any year falls DRAMATICALLY short of the EVA Target. In this
              case, the negative bonus would be applied to the EVA Bonus Bank,
              if applicable. See the discussion below regarding the EVA Bonus
              Bank.

              Participants with a salary grade of 8 and below and/or hourly,
              will not participate in the EVA Bonus Bank and therefore will not
              be subject to a negative Bonus. In exchange, the Bonus Multiple
              for these Participants will not exceed 2.0. The amount of any
              positive Bonus shall be paid in cash (net of withholdings) to
              these Participants on the applicable Payment Date.

       (b)    CASCADE STEEL. Due to the Company's announcement in May 2004 that
              it would explore options with respect to Cascade Steel, it was
              determined by Cascade Steel's senior management team that the
              Cascade Steel Plan Participants who are Grade 9 and above will not
              be subject to a Cap or Floor. Thus, they have unlimited upside and
              downside.

              Cascade Steel Participants with a salary grade of 8 and below
              and/or hourly will not participate in the EVA Bonus Bank and
              therefore will not be subject to a negative bonus. In exchange,
              the Bonus Multiple for these Participants will not exceed 2.0. The
              amount of any positive Bonus shall be paid in cash (net of
              withholdings) to these Participants on the applicable Payment
              Date.

       6.     Payment of Bonus and EVA Bonus Bank (Grades 9 and Above)
              --------------------------------------------------------

              The amount of any positive Bonus shall be paid in cash (net of
              withholdings) to the Participant, subject to a banking system of
              two thirds of the amount in excess of the Annual EVA Target Bonus.
              The total Bonus PAYMENT (each an "INDIVIDUAL AWARD") for each Plan
              year will be determined as follows:


                    BEGINNING YEAR BANK BALANCE
              +     EVA BONUS DECLARED
              =     AVAILABLE BANK BALANCE

                                      -3-
<PAGE>

              -     PAYOUT UP TO 100% OF ANNUAL EVA TARGET BONUS TO PARTICIPANT
              =     BONUS BANK BALANCE AVAILABLE TO BE PAID IN CURRENT YEAR
              -     CURRENT YEAR BANK PAYOUT EQUAL TO 33 1/3% OF ANY BANK
                    BALANCE AVAILABLE

              =     ENDING  YEAR BANK BALANCE

              The banking of Bonuses serves to smooth Bonus payouts over the
              business cycle. This banking system also ensures that performance
              is sustained by making the payout of bank balances contingent on
              sustained performance, through the formula outlined above.

              The payment will be made (net of withholding) shortly after the
              Company's fourth quarter earnings release, for each Plan year,
              after all financial statement audits are completed (each a
              "PAYMENT DATE").

              The Bonus Bank balance, if any, is not separately funded or set
              aside like a 401(k) Plan and/or Pension Plan and remains an asset
              of the Company, subject to the rights of general creditors.
              Further, it is not adjusted for interest or investment gains and
              losses.

       7.     Negative Bonus Bank (Grades 9 and Above)
              ----------------------------------------

              As previously mentioned, the Plan subjects certain Participants to
              risks that can result in both significantly higher Bonus payouts
              than the EVA Target Bonus, but can also cause Bonus declarations
              to be negative. A Negative Bonus Declaration can cause a
              Participant's Bonus Bank to be negative entering a new Plan year.
              In this circumstance any negative Bonus Bank must be repaid as
              follows: In a year a "positive" EVA Bonus Declaration is made, 50
              cents of every dollar of such EVA Bonus will be used, first to
              repay the negative Bonus Bank amount until the Bonus Bank balance
              is at zero, and the balance of the EVA Bonus will be paid (and a
              portion may be placed in the Bonus Bank as provided in paragraph
              A. 6 above) to the Participant on the applicable Payment Date.

              EXAMPLE:

              Fictitious "Employee A's" EVA Earnings = $35,000
              EVA Target Bonus % = 10%

              Beginning Bonus Bank Balance                              ($3,500)
              Current year Bonus Multiple = .50x
              EVA Bonus Declaration = $1,750
                  Repay the negative Bonus Bank
                  Balance $.50 per $1.00                         875
                                                             -------
              Ending Year Bonus Bank Balance                 ($2,628)

              Individual Award paid in current year                        $875

B.     Administration and Guidelines of the Plan
       -----------------------------------------

              Administration of the Plan is at the sole discretion of the
              Company's Chief Executive Officer (the "PLAN ADMINISTRATOR")
              except with respect to the Company's Executive Officers, for whom
              the Plan shall be administered by the Compensation Committee of
              the Company's Board of Directors. The Plan Administrator shall
              establish the EVA Centers. Guidelines for EVA adjustments and the
              "capitalization" of certain items will be maintained by the
              Company's Chief Financial Officer (the "CFO"). The Plan may be
              amended in whole or in part from time to time, or terminated in
              its entirety by the Plan Administrator or the

                                      -4-
<PAGE>

              Board of Directors, provided that no such amendment or termination
              shall adversely affect any positive balance then remaining in a
              Participant's Bonus Bank. Guidelines for the Plan's administration
              are:

       1.     Duration of the Current Plan Provisions
              ---------------------------------------

              It is anticipated that the EVA Bonus Plan will endure long into
              the future. However, the current provisions in the Plan have been
              set and are not anticipated to change, except in the unusual
              circumstances that include a significant change in the Company's
              business operations and/or a material change in capital structure.
              It is anticipated that every two to three years, the Plan's
              provisions will be reviewed and key factors MAY be recalibrated.

       2.     Individual Awards
              -----------------

              Individual Awards for exempt and non-exempt eligible Participants
              shall be based on the EVA Earnings (as defined in Attachment B) of
              each Participant during the applicable fiscal year.

       3.     Determination of EVA Improvement Factors/Targets
              ------------------------------------------------

              The EVA Targets for each EVA Center will be objectively calculated
              based upon its prior year's actual EVA, plus an improvement
              factor, which is determined as part of the Plan's recalibration. A
              summary of each EVA Center's improvement factors will be
              maintained by the CFO and will be reviewed during the
              recalibration periods.

       4.     Determination of Bonus Awards
              -----------------------------

              The CFO will compute each EVA Center's EVA for the fiscal year and
              present it for approval by the Plan Administrator.

       5.     New Hires/Promotions
              --------------------

              An individual who is hired/promoted into a position that
              participates in the EVA Bonus Plan may be eligible for a Bonus
              award so long as he/she has been employed full or part time for 90
              consecutive days. (see Eligibility on page 1). The EVA Bonus will
              be based upon the EVA Earnings from the date of hire/promotion to
              the end of the fiscal year.

              Mid-year promotions that change the Employee's EVA Target Bonus
              and/or EVA Center will be weighted based on the number of days at
              each EVA Target Bonus level and/or days in each EVA Center.

       6.     Transfers
              ---------

              A Participant who transfers his or her employment from one EVA
              Center to another shall have his or her EVA Bonus Bank transferred
              to the new EVA Center. For the year in which the transfer occurs,
              the Participant will have his or her EVA Bonus Declaration
              weighted based on the time spent in each particular EVA Center The
              Participant's weighted average EVA Bonus Multiple will be based on
              each EVA Center's full year EVA performance, prorated based upon
              the period the Participant was employed in each EVA Center.

       7.     Death or Disability
              -------------------

              A Participant who dies or becomes permanently disabled, as defined
              by the Company's disability policy, while in the employment of the
              Company, shall receive full payment of his or her positive Bonus
              Bank Balance, if any, after the EVA Bonus payment for the year in
              which he or she dies or becomes permanently disabled has been
              calculated, together with his or her pro-rata share of the

                                      -5-
<PAGE>

              current year's EVA Bonus Declaration (to the extent it results in
              a positive number). In the event of death, the payment will be
              made to the Employee's estate. Such payments shall be made on the
              Payment Date in respect to the Plan year in which such death or
              disability occurs.

       8.     Retirement
              ----------

              A Participant who retires from the Company shall receive full
              payment of his or her positive Bonus Bank Balance, if any, that
              remains after the calculation of the Participant's EVA Bonus
              Declaration for the fiscal year in which such retirement occurs,
              together with his or her pro-rata share of the current year's EVA
              Bonus Declaration (to the extent it results in a positive number).
              The payment of the Bonus Bank, if any, will be made in a lump sum
              on the Payment Date in respect of the Plan year in which such
              retirement occurs. Negative Ending Bonus Bank Balances are waived.
              For the purposes of this paragraph 8, a person who is at least age
              55 is deemed to be "retired" when he/she would receive retirement
              benefits under his or her retirement pension plan, if any.

       9.     Involuntary Termination without Cause
              -------------------------------------

              A Participant who is involuntarily terminated without cause will
              receive full payment of his or her Bonus Bank Balance on the
              Payment Date next following the Employee's date of termination.
              Negative Ending Bonus Bank Balances are waived.

       10.    Voluntary Resignation or Termination with Cause
              -----------------------------------------------

              Except as expressly provided above, voluntary termination of
              employment or termination with cause (as determined by the Plan
              Administrator or the Compensation Committee, as applicable) shall
              result in forfeiture of the Participant's Bonus Bank Balance and
              any EVA Bonus Declaration for the fiscal year in which voluntary
              resignation or termination with cause occurs.

       11.    General Provisions
              ------------------

       (a)    Withholding of Taxes. The Company shall have the right to withhold
              the amount of taxes, which it determines is required to be
              withheld under law with respect to any amount payable under this
              Plan.

       (b)    Expenses. All expenses and costs in connection with the adoption
              and administration of the Plan shall be borne by the Company.

       (c)    No Prior Right or Offer. Except and until expressly granted
              pursuant to the Plan, nothing in this Plan shall be deemed to give
              any Employee any contractual or other right to participate in the
              benefits of the Plan. No award to any such Participant in any Plan
              period shall be deemed to create a right to receive any award or
              to participate in the benefits of the Plan in any subsequent Plan
              Period.

       12.    Limitations
              -----------

       (a)    No Continued Employment. Neither the establishment of the Plan or
              the grant of an award hereunder shall be deemed to constitute an
              express or implied contract of employment with any Participant for
              any period of time, or change an Employee's "at will" status, or
              in any way abridge the rights of the Company to determine the
              terms and conditions of employment or to terminate the employment
              of any Employee with or without cause, at any time.

       (b)    Not Part of Other Benefits. The benefits provided in this Plan
              shall not be deemed a part of any other benefit provided by the
              Company to its employees. The Company assumes and shall have no
              obligation to Participants except as expressly provided in this
              Plan.

                                      -6-
<PAGE>

       (c)    Other Plans. Nothing contained herein shall limit the Company's
              power to grant bonuses to employees of the Company, whether or not
              they are Participants in this Plan.








































                                      -7-
<PAGE>


ATTACHMENT A


                                 GUIDELINES FOR:
                         AMENDMENTS TO EVA TARGET LEVELS
                       AND THE CAPITALIZATION OF EXPENSES

                   AMENDMENT TO EVA TARGET PERFORMANCE LEVELS
                   ------------------------------------------

The EVA performance Targets established under the EVA Bonus Plan is intended to
achieve long term improvements in shareholder value. These Targets have been
objectively determined based on investors' expectations of the Company's
returns. Changes to these Targets are expected to be infrequent, but are likely
to change upon the recalibration of the Plan or upon a major acquisition or
divestiture by the Company. It is expected that the Plan will be recalibrated
every two to three years. Nonetheless, situations will arise in which it is
appropriate to revise such objectives.

                           CAPITALIZATION OF EXPENSES
                           --------------------------

Similarly, certain "significant" expenses, losses, income and gains should not
be considered normal due to their unusual nature. Under EVA theory certain of
these expenses should be "capitalized" so that they do not distort operating
results calculated under EVA in any given year. These items are to be added to
the capital base of the EVA Center and thus required to earn a return as long as
these capitalized expenses remain a part of the capital base. A capitalized
expense (a "CAPITAL CHARGE") would usually have one or more of the following
criteria:

     o    Material to the Company
     o    Unusual
     o    Nonrecurring in the foreseeable future
     o    Result in tangible, measurable, long-term benefit to the business.

     Some examples of significant unusual income and expense items that MIGHT be
     capitalized are as follows:

     o    Significant shut-down expenses related to consolidation of operating
          units following an acquisition
     o    Expenses related to a Plant closing. The shut-down is expected to lead
          to improved operating profits
     o    (Gains)/Losses on the disposal of equipment
     o    Income received from a legal settlement (e.g., electrode price fixing
          settlement)
     o    Significant, legacy environmental issues that are the result of
          changes in law or government focus

     Some examples of costs that should NOT be capitalized are as follows:

     o    Ongoing environmental prevention and "normal" remediation costs
          associated with the business
     o    Losses resulting from holding inventory or decreases in market prices
     o    New revenue sources (e.g., power sales, adding a new product line like
          dock activity, etc.)
     o    Employee severance costs resulting from terminations and
          hiring/relocation expenses

The CFO will review all requests for capitalization of expenses, which should be
submitted prior to incurring the costs or expenses, where practical. Any
revisions to EVA calculations are at the discretion of the Plan Administrator
and/or the Compensation Committee, as the case may be.

                                 EVA ADJUSTMENTS
                                 ---------------

In order to calculate EVA in a manner that is consistent with the underlying
economics of the business and to properly align management motivations with
investor expectations, the Company will make certain adjustments to

                                      -8-
<PAGE>

the "normal' financial statements that are produced for external reporting. As
part of the implementation of EVA, a cross functional team of managers from
across the Company analyzed potential adjustments that could be made. Based upon
this analysis the following EVA adjustments will be made on a monthly basis to
calculate EVA:


A. NOPAT (NET OPERATING PROFITS AFTER TAXES) IS CALCULATED AS NET INCOME, WHICH
INCLUDE, WITHOUT LIMITATION, THE FOLLOWING ADJUSTMENTS:

1.     Interest expense is added back to NOPAT.
2.     The interest component of operating lease expense is added back to NOPAT.
       The interest component of operating lease expense is calculated as
       capitalized operating leases x cost of borrowing.
3.     Income resulting from non-operating items (capitalized bond fees at CSRM,
       benefit plan assets, certain non-operating notes) is excluded from the
       calculations.
4.     The after-tax amount of non-recurring expense (income) is excluded from
       NOPAT calculations, but added to (subtracted from) Capital.
5.     Increase in the bad debt reserve is added back to NOPAT.
6.     Increase in the valuation reserves is added back to NOPAT. No such
       adjustment is required for the scrap inventory.
7.     Amortization of goodwill is added back to NOPAT.
8.     Expenses from strategic investments may be capitalized into a suspense
       account and brought in to the EVA calculations over time if approved in
       advance by the steering committee with a specified schedule.
9.     Economic taxes are calculated by applying economic tax
10.    Delinquent customer advances are amortized as a NOPAT expense over a
       limited, defined period.


B. CAPITAL IS CALCULATED AS TOTAL ASSETS, WHICH INCLUDE, WITHOUT LIMITATION, THE
FOLLOWING ADJUSTMENTS:

1.     Non-interest bearing current liabilities (accounts payable, accrued
       payroll liabilities, etc.) are subtracted from Capital, but current
       portion of environmental liability is not treated as a non-interest
       bearing current liability.
2.     Capitalized operating leases are added to Capital.
3.     Non-operating items are removed from Capital.
4.     The after-tax amount of non-recurring expense (income) is added to
       (subtracted from) Capital.
5.     Accounts receivable is grossed up to include the bad debt reserve.
6.     Inventory is grossed up to include any valuation reserves.
7.     Goodwill is grossed up to include accumulated amortization.
8.     Capital from strategic investments may be capitalized into a suspense
       account and brought in to the EVA calculations over time if approved in
       advance by the Plan Administrator with a specified schedule.
9.     Cumulative difference between the cash tax paid by Schnitzer Steel and
       the economic tax is added to Capital.
10.    Delinquent customer advances are amortized over a limited, defined
       period.


The Company will continue to review the list of adjustments and consider changes
or additions to the list of adjustments as part of the Plan's calibration.

                                      -9-
<PAGE>

ATTACHMENT B


                     EVA FISCAL YEAR EARNINGS (EVA EARNINGS)


       Regular Salary (base salary)
       Overtime (applies to non-exempt employees)
       Double-time (applies to eligible non-exempt employees)
       Bereavement
       Adjusted Wages (adjustments to wages)
       Vacation (vacation pay, where applicable)
       PTO (paid time off, where applicable)
       Sick (sick pay, where applicable)
       Disability Bank ("frozen" sick leave balances applicable only to those
            Employees who were employed by the Company prior to the
            implementation of the PTO program)
       Floating Holiday, if applicable
       Miscellaneous Fringe Benefits (pursuant to list maintained by the
            Company's Human Resources Department)
       Shift differential pay
       Jury duty
       Military leave





















                                      -10-
<PAGE>


                                GLOSSARY OF TERMS


References to defined terms in the EVA Bonus Plan:

              Term:                                    Paragraph:
              ----                                     ----------

        Actual EVA                                        A. 3(b)

        Bonus                                             A. 3(a)

        Bonus Bank                                          A. 6

        Bonus Multiple                                    A. 3(b)

        Calibration Period                            See Attachment A

        Cap                                               A. 5(a)

        Capital                                       See Attachment A

        Capital Charge                                See Attachment A

        CFO                                         B (first paragraph)

        Compensation Committee                            A. 3(c)

        Employee/Participant                                A. 2

        EVA                                            A. 1 / A. 3(a)

        EVA Bonus Declaration                             A. 3(a)

        EVA Center                                          A. 2

        EVA Earnings                                      A. 3(e)

        EVA Leverage Amount or Interval                   A. 3(c)

        EVA Target Bonus or Target Bonus                  A. 3(d)

        Expected Improvement                                B. 3

        Floor                                             A. 5(a)

        Individual Awards                                   A. 6

        Interval (or EVA Leverage Amount)                   A. 3

        Negative Bonus                                      A. 4

        NOPAT                                             A. 3(a)

                                      -11-
<PAGE>

              Term:                                    Paragraph:
              ----                                     ----------

        Payment Date                                        A. 6

        Plan                                       Introductory paragraph

        Plan Administrator                          B. (first paragraph)

        Schnitzer Steel or SSI or Company          Introductory paragraph





























                                      -12-