Document:

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                                                                    Exhibit 10.8

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT ("AGREEMENT"), is made and entered into as of
January 16, 2004, by and between Daniel Dienst ("EXECUTIVE") and Metal
Management, Inc., a Delaware corporation (the "MTLM").

         NOW, THEREFORE, in consideration of the premises, promises, mutual
covenants and mutual agreements contained herein, Executive and MTLM hereby
agree as follows:

         1.       EMPLOYMENT. (a) On the terms and subject to the conditions set
forth in this Agreement, MTLM employs Executive as its Chief Executive Officer
to perform such duties and responsibilities as are consistent with such position
and such other positions as may be assigned to Executive, from time to time, by
the Board of Directors of MTLM (the "BOARD"). For as long as Executive is so
employed, he shall devote his full business time, energy and ability to his
duties, except for incidental attention to the management of his personal
affairs. Further, during the Employment Period (as defined below), MTLM shall
take all action possible to see that Executive while employed under this
Agreement continues to be nominated and elected to serve on the Board and, if
elected to so serve, that Executive be elected as the Chairman of the Board. If
Executive is Chairman of the Board when his employment terminates under this
Agreement, whether pursuant to Section 6 or 7 of this Agreement, he shall tender
his resignation as Chairman and director effective as of the Termination Date
(as defined below).

                  (b)      Executive's worksites during the Employment Period
(as defined below) shall be 500 N. Dearborn Street, Suite 600, Chicago, Illinois
60610 and a location in New York City to be mutually agreed upon by MTLM and
Executive, with Executive's time allocated between the two sites as shall be
reasonably determined to be necessary and appropriate by Executive to fulfill
Executive's duties and responsibilities and exercise Executive's powers under
the terms of this Agreement.

                  (c)      Executive shall have the right to continue to serve
on the board of directors of those business, civic and charitable organizations
on which Executive is now serving as of the date of this Agreement, and which
are set forth on EXHIBIT A attached hereto, as long as doing so has no
significant adverse affect on the performance of Executive's duties and
responsibilities or the exercise of Executive's powers under this Agreement.
Executive shall not serve on any other boards of directors and shall not provide
services (whether as an employee or independent contractor) to any for-profit
organization on or after the date of this Agreement without the prior consent of
the Board (which shall not be unreasonably withheld in light of Executive's
duties and responsibilities under this Agreement); provided, however, MTLM
understands and acknowledges that Executive shall be entitled to wrap up or
otherwise complete within 30 days after the date of this Agreement the matters
on which Executive is currently working pursuant to his prior employment.

         2.       TERM. The term of employment under this Agreement shall
commence on January 16, 2004 (the "COMMENCEMENT DATE") and shall continue
through, and end as of the close of business on March 31, 2008 (the "EMPLOYMENT
PERIOD"); provided, however, that on March 31, 2008 and each anniversary
thereof, the Employment Period shall be extended for an additional year unless
either MTLM or Executive, as the case may be, notifies the other not less

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than 60 days prior to the end of the then current Employment Period of its or
his desire not to extend the Employment Period; provided further that the
Employment Period may terminate sooner upon the occurrence of certain events as
described in Sections 5, 6, 7, 8 and 9 of this Agreement. The date on which
Executive's employment is terminated shall be referred to herein as the
"TERMINATION DATE"

         3.       COMPENSATION.

                  (a)      Base Compensation. The base compensation to be paid
                           to Executive for his services under this Agreement
                           shall be not less than $750,000 per year, subject to
                           applicable withholdings, payable in equal periodic
                           installments in accordance with the usual payroll
                           practices of MTLM, but no less frequently than
                           monthly, commencing on the Commencement Date.
                           Executive's base compensation shall be subject to
                           annual review for cost of living and merit factors,
                           with any adjustments determined by the compensation
                           committee of the Board. The foregoing is hereafter
                           referred to as Executive's "BASE COMPENSATION."

                  (b)      Bonuses. During the Employment Period, Executive
                           shall also be eligible to receive the following:

                           (i)      Signing Bonus. MTLM shall, subject to
                           applicable withholdings, pay Executive $375,000 as a
                           signing bonus, such amount to be paid within ten days
                           after the execution of this Agreement.

                           (ii)     Annual Bonus. For the period ending March
                           31, 2004, and for each subsequent twelve-month period
                           during the Employment Period ending March 31,
                           Executive shall be eligible to receive an annual
                           bonus in accordance with the terms of MTLM's annual
                           bonus program as then in effect for MTLM's senior
                           executives as such program is modified by this
                           Section 3(b)(ii); provided, however, the compensation
                           committee of the Board may direct MTLM to pay
                           Executive an annual bonus which exceeds the annual
                           bonus otherwise payable under such program or the
                           minimum annual bonus set forth below. Notwithstanding
                           anything contained herein to the contrary,
                           Executive's minimum annual bonus shall (subject to
                           applicable withholdings) for each period set forth
                           below shall be the figure set forth opposite such
                           period:

<TABLE>
<S>                                         <C>
January 16, 2004 through March 31, 2004     $350,000
March 31, 2004 through March 31, 2005       $750,000
March 31, 2005 through March 31, 2006       $375,000
March 31, 2006 through March 31, 2007       $187,500
</TABLE>

                           Each annual bonus described in this Section 3(b)(ii)
                           shall be paid at the time called for under MTLM's
                           annual bonus program for senior executives.

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                           (c) Restricted Stock. Upon execution and delivery of
                  the this Agreement by MTLM and Executive, Executive shall be
                  granted 250,000 shares of common stock, $0.01 par value per
                  share (the "MTLM STOCK") pursuant to the terms of the Metal
                  Management, Inc. 2002 Incentive Stock Plan (the "PLAN").
                  Except as otherwise provided in this Agreement or the Plan,
                  Executive's interest in 62,500 shares shall become
                  non-forfeitable on March 31, 2005 provided Executive is still
                  employed by MTLM on such date, and his interest in an
                  additional 62,500 shares shall become non-forfeitable on each
                  of the next three subsequent anniversaries of such date
                  provided Executive is still employed by MTLM on such
                  anniversary date. All the terms and conditions to such grant
                  shall be set forth for Executive in a certificate in
                  accordance with the terms of the Plan.

                           (d) Options. Upon execution and delivery of this
                  Agreement by MTLM and Executive, Executive shall be granted
                  two options to purchase shares of MTLM Stock pursuant to the
                  terms of the Plan, one for 50,000 shares of MTLM Stock at an
                  exercise price of $52.50 per share and another for 50,000
                  shares of MTLM Stock at an exercise price of $70.00 per share,
                  exercisable, at the election of Executive, at any time on or
                  after the date hereof and on or prior to the tenth anniversary
                  date of this Agreement. All the terms and conditions to such
                  grant shall be set forth for Executive in a certificate in
                  accordance with the terms of the Plan.

         4.       FRINGE BENEFITS. MTLM shall furnish Executive with accident,
health and life insurance and reimbursement of all documented reasonable and
necessary out-of-pocket expenses incurred by Executive on behalf of MTLM by
reason of the performance of Executive's duties and responsibilities hereunder.
Further, MTLM shall furnish Executive with all of the additional fringe benefits
made generally available by MTLM to its executive officers recognizing that such
fringe benefits may be changed from time to time provided Executive shall be
deemed immediately eligible for any such fringe benefits to the extent
permissible under the terms of applicable law and the terms of the underlying
plans, programs and policies. Executive shall be entitled to take five (5) weeks
of paid vacation per calendar year, and shall be paid on all national and state
holidays, during the Employment Period. Vacation allowances shall not be
cumulative from year to year. MTLM shall include Executive as a covered person
under MTLM's directors and officers' insurance policy. MTLM shall furnish
Executive with appropriate office space (as set forth in Section 1(b) of this
Agreement), equipment, supplies, and such other facilities and personnel as
necessary or appropriate (de minimis use thereof by Executive for personal
reasons shall not be deemed a breach of this Agreement). MTLM shall pay
Executive's dues in such societies and organizations as MTLM deems appropriate,
and shall pay on behalf of Executive (or reimburse Executive for) documented
reasonable out-of-pocket expenses incurred by Executive in attending
conventions, seminars, trade shows and other business meetings and business
entertainment and promotional expenses. MTLM shall pay Executive an automobile
allowance of $1,000.00 per month, subject to applicable withholdings.

         5.       DEATH OR PERMANENT DISABILITY. If, during the Employment
Period, Executive dies (as confirmed by a certificate of death) or Executive is
permanently disabled such that, in the opinion of a physician selected by MTLM
and Executive, Executive is rendered incapable of performing the services
contemplated under this Agreement for a period of twelve (12)

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consecutive months by reason of illness, accident, or other physical or mental
disability ("PERMANENT DISABILITY"), this Agreement shall be deemed to be
terminated as of the date of such death or of the determination of Permanent
Disability. Notwithstanding the foregoing, Executive shall be entitled to the
benefits as provided in Section 8 of this Agreement. During any period prior to
such time when Executive is permanently disabled, as described above, MTLM shall
be obligated to perform its obligations under this Agreement in accordance with
its terms, including, but limited to, its obligations under Section 3 of this
Agreement.

         6.       INVOLUNTARY TERMINATION. Except in the case of termination for
Cause pursuant to Section 7 of this Agreement, if MTLM terminates Executive's
employment hereunder without Executive's consent, all of Executive's benefits
under this Agreement shall cease immediately upon the date of such termination,
provided that Executive shall continue to be entitled to receive the benefits as
provided in Section 8(b) of this Agreement.

         7.       TERMINATION VOLUNTARY OR FOR CAUSE.

                  (a)      In the event: (i) Executive voluntarily terminates
                           his employment hereunder without Good Reason (as
                           defined below); (ii) pursuant to Section 9(b) of this
                           Agreement; or (iii) Executive's employment hereunder
                           is terminated for Cause, unless otherwise provided
                           herein, all of his compensation and benefits under
                           this Agreement shall cease immediately upon the date
                           of such termination, provided that Executive shall be
                           entitled to receive the compensation provided in
                           Section 3 of this Agreement paid on a pro rata basis
                           to the date of such termination.

                  (b)      Termination for Cause. Any of the following events
                           shall be considered as "CAUSE" for the immediate
                           termination of the Employment Period by MTLM:

                           (i)      final and non-appealable conviction of
                           Executive for a felony or a nolo contendere plea with
                           respect to a felony; or

                           (ii)     final and non-appealable conviction of
                           Executive for (a) misappropriation by Executive of
                           funds or property of MTLM or (b) the commission of
                           other acts of dishonesty relating to his employment;
                           or

                           (iii)    (a) willful breach of this Agreement which
                           is not cured by Executive within 10 days following
                           receipt by Executive of written notice of such breach
                           from MTLM or (b) material neglect by Executive of any
                           of his material duties or responsibilities hereunder
                           which is not cured by Executive within 30 days
                           following receipt by Executive of written notice of
                           the acts that MTLM assert constitute such neglect by
                           Executive, provided, however, that any such willful
                           breach which is not curable shall be considered Cause
                           for the immediate termination of the Employment
                           Period by MTLM; or

                           (iv)     conduct on the part of Executive which is
                           materially adverse to any known interest of MTLM that
                           continues unabated, or uncured to the

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                           reasonable satisfaction of MTLM, after the expiration
                           of 10 days following receipt of written notice by
                           Executive from MTLM.

                           Notwithstanding the foregoing, Executive shall not be
                           deemed to have been terminated for Cause unless and
                           until there shall have been delivered to him a
                           written termination notice signed by a member of the
                           Board duly authorized to deliver such notice.

         8.       ACCELERATION OF PAYMENTS.

                  (a)      For this Agreement, the following terms shall have
                           the following meanings:

                           (i)      "GOOD REASON" shall mean the occurrence of
                           any of the following events without Executive's
                           express written consent: (a) a reduction by MTLM of
                           Executive's compensation provided in Section 3 of
                           this Agreement; (b) any material breach by MTLM of
                           any provisions of this Agreement which is not cured
                           by MTLM within 10 days following receipt by MTLM of
                           written notice of such breach from Executive; (c) the
                           assignment of Executive by MTLM without his consent
                           to a position, responsibility or duties of a
                           materially lesser status or degree of responsibility
                           than his position, responsibilities or duties as of
                           the Commencement Date or (d) the Committee appointed
                           by the Board to administer the Plan takes action that
                           materially reduces the value of the stock options
                           awarded in connection with Section 3(d) of this
                           Agreement and has the result of treating Executive
                           materially differently than other employees and
                           directors who received options, stock appreciation
                           rights or stock grants under the Plan.

                           (ii)     "TRIGGER DATE" means the date on which a
                           Triggering Event occurs.

                           (iii)    "TRIGGERING EVENT" means any of: (a) a
                           resignation of Executive as an employee of MTLM due
                           to Good Reason; (b) termination of the Employment
                           Period under Section 5 of this Agreement; or (c)
                           involuntary termination of the Employment Period by
                           MTLM, except in the case of termination for Cause.

                  (b)      OCCURRENCE OF TRIGGERING EVENT. Upon the occurrence
                           of a Triggering Event, Executive shall receive from
                           MTLM a lump sum payment equal to the Base
                           Compensation provided under Section 3(a) and the
                           minimum annual bonuses provided under Section
                           3(b)(ii) of this Agreement that otherwise would have
                           been payable to Executive through March 31, 2008 but
                           for the occurrence of a Triggering Event; provided,
                           if he would have earned a bonus in accordance with
                           Section 3(b)(ii) of this Agreement for the fiscal
                           year in which the Triggering Event occurred if
                           Executive had remained employed through the end of
                           the fiscal year, he shall be paid

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                           such bonus in lieu of the minimum bonus for such
                           year. Furthermore, any unvested stock options or
                           stock grants or any unvested long term incentive plan
                           compensation shall immediately become vested.
                           Additionally, unless (i) MTLM terminates Executive's
                           employment for Cause, (ii) Executive terminates this
                           Agreement without Good Reason, or (iii) this
                           Agreement is terminated as a result of Executive's
                           death, Executive shall, at no cost to Executive, be
                           entitled to continue to participate in the
                           MTLM-provided health and medical insurance programs
                           until March 31, 2008, provided, however, that, if
                           this Agreement is terminated as a result of
                           Executive's death, Executive's then current spouse
                           and dependent children shall be entitled to continue
                           to participate in the MTLM-provided health and
                           medical insurance programs for one-year after such
                           death, unless, in each case, such continued
                           participation is prohibited by any applicable laws or
                           would otherwise jeopardize the tax qualified status
                           of any such programs. If MTLM is prohibited by
                           applicable law or would otherwise jeopardize the tax
                           qualified status of any health or medical insurance
                           plan and as a result MTLM terminates coverage, it
                           shall promptly reimburse Executive for the cost of
                           obtaining comparable third party coverage.

                  (c)      TIME OF PAYMENT FOLLOWING TRIGGERING EVENT. All
                           accelerated payments of Base Compensation, bonuses,
                           and long term incentive plan compensation due to
                           Executive pursuant to this Section shall be paid
                           promptly but in any event within thirty (30) days
                           after the Trigger Date, provided, however, that any
                           earned bonuses as set forth in Section 3(b)(iii) of
                           this Agreement shall be paid as otherwise set forth
                           herein.

         9.       NON-COMPETITION.

                  (a)      GENERAL. In addition to any other obligations of
                           Executive under any other agreement with MTLM, in
                           order to assure that MTLM shall realize the benefits
                           of this Agreement and in consideration of the
                           employment set forth in this Agreement, Executive
                           shall not:

                           (i)      during the period beginning on the date of
                           this Agreement and ending eighteen months after the
                           Termination Date (the "NON-COMPETITION PERIOD"),
                           directly or indirectly, whether through an affiliate
                           or otherwise, alone or as a partner, joint venturer,
                           member, officer, director, employee, consultant,
                           agent, independent contractor, stockholder, or in any
                           other capacity of any company or business, engage in
                           any business activity in any state in the United
                           States in which, prior to the Termination Date, MTLM
                           or any subsidiary or affiliate of MTLM conducts
                           business or is actively planning to conduct business
                           and, on and after the Termination Date, MTLM or any
                           subsidiary or affiliate of MTLM on the Termination
                           Date conducts business or is actively planning to
                           conduct business, which business activity is directly
                           or indirectly in competition with the business, prior
                           to the Termination Date, that is conducted by or is
                           actively planned to be conducted by MTLM or any

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                           subsidiary or affiliate of MTLM and, on and after the
                           Termination Date, is on the Termination Date
                           conducted by or is actively planned to be conducted
                           by MTLM or any subsidiary or affiliate of MTLM;
                           provided, however; that, the beneficial ownership of
                           less than 5% of the shares of stock of any
                           corporation having a class of equity securities
                           actively traded on a national securities exchange or
                           over-the-counter market shall not be deemed, in and
                           of itself, to violate the prohibitions of this
                           Section; provided, however, that Executive shall not
                           be bound by the restrictions set forth in this
                           Section 9(a)(i) if MTLM shall not have cured the
                           failure to make any material payment to Executive
                           under this Agreement within 30 days following receipt
                           by MTLM of written notice from Executive of such
                           failure unless such failure to make such payment is
                           due to MTLM's allegation of a material breach of the
                           terms of this Agreement;

                           (ii)     during the Non-Competition Period, directly
                           or indirectly (a) induce any person which is a
                           customer of MTLM or any subsidiary or affiliate of
                           MTLM on the Termination Date to patronize any
                           business directly or indirectly in competition with
                           the business conducted by MTLM or any subsidiary or
                           affiliate of MTLM on the Termination Date; (b)
                           canvass, solicit or accept from any person which is a
                           customer of MTLM or any subsidiary or affiliate of
                           MTLM on the Termination Date, any such competitive
                           business, or (c) request or advise any person which
                           is a customer of MTLM or any subsidiary or affiliate
                           of MTLM on the Termination Date to withdraw, curtail
                           or cancel any such customer's business with MTLM or
                           any subsidiary or affiliate of MTLM on the
                           Termination Date;

                           (iii)    during the Non-Competition Period, directly
                           or indirectly employ, or knowingly permit any company
                           or business directly or indirectly controlled by him,
                           to employ, any person who was employed by any of MTLM
                           or any then subsidiary or affiliate of MTLM at or
                           within six months prior to the Termination Date, or
                           in any manner seek to induce any such person to leave
                           his or her employment; or

                           (iv)     directly or indirectly, at any time
                           following the Termination Date, in any way utilize,
                           disclose, copy, reproduce or retain in his possession
                           any of MTLM's or any subsidiary's or affiliate's
                           proprietary rights or records, including, but not
                           limited to, any of their customer or price lists.

                  (b)      EXECUTIVE ELECTION TO END NON-COMPETITION PERIOD. In
                           the event that a Change in Control occurs, Executive
                           shall have the right to elect, within one hundred
                           twenty (120) days of such Change of Control ("CHANGE
                           OF CONTROL EVENT"), to terminate this Agreement,
                           effective as of ninety (90) days after such election.
                           The Non-Competition Period shall terminate effective
                           with the date of such termination. In the event of a
                           termination under this clause (b), except as
                           otherwise provided in this clause (b), Executive
                           shall not be entitled to any separation or severance
                           benefits

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                           provided for under this Agreement for periods
                           following the date of termination notwithstanding
                           anything in this Agreement to the contrary.

                  (c)      SCOPE OF RESTRICTION. Executive agrees and
                           acknowledges that the restrictions contained in this
                           Section 9 are reasonable in scope and duration and
                           are necessary to protect MTLM after the Commencement
                           Date. If any provision of this Section 9 as applied
                           to any party or to any circumstance is adjudged by a
                           court to be invalid or unenforceable, the same shall
                           in no way affect any other circumstance or the
                           validity or enforceability of this Agreement. If any
                           such provision, or any part thereof, is held to be
                           unenforceable because of the duration of such
                           provision or the area covered thereby, the parties
                           agree that the court making such determination shall
                           have the power to reduce the duration and/or area of
                           such provision, and/or to delete specific words or
                           phrases, and in its reduced form, such provision
                           shall then be enforceable and shall be enforced. The
                           parties agree and acknowledge that the breach of this
                           Section 9 shall cause irreparable damage to MTLM and
                           upon breach of any provision of this Section 9, MTLM
                           shall be entitled to injunctive relief, specific
                           performance or other equitable relief; provided,
                           however, that this shall in no way limit any other
                           remedies which MTLM may have (including, but not
                           limited to, the right to seek monetary damages).

         10.      CHANGE OF CONTROL.

                  (a)      GENERAL. Notwithstanding anything in the Plan to the
                           contrary, for purposes of this Agreement and with
                           respect to any options, stock grants and stock
                           appreciation rights issued under the Plan to
                           Executive, "CHANGE OF CONTROL" shall be deemed to
                           mean a "change in control" of the Company of a nature
                           that would be required to be reported in response to
                           Item 6(e) of Schedule 14A of Regulation 14A
                           promulgated under the Securities Exchange Act of
                           1934, as amended (the "1934 ACT"), as in effect at
                           the time of such "change in control," provided that
                           such a change in control shall be deemed to have
                           occurred at such time as (1) any "person" (as that
                           term is used in Sections 13(d) and 14(d)(2) of the
                           1934 Act) becomes after the effective date of this
                           Agreement the beneficial owner (as defined in Rule
                           13d-3 under the 1934 Act) directly or indirectly of
                           securities representing 40% or more of the combined
                           voting power of the then outstanding securities for
                           election of directors of the Company or any successor
                           to the Company, (2) during any period of two
                           consecutive years or less, individuals who at the
                           beginning of such period constitute the Board cease,
                           for any reason, to constitute at least a majority of
                           the Board, unless the election or nomination for
                           election of each person who was not a director at the
                           beginning of such period was approved by vote of at
                           least two-thirds of the directors then in office who
                           were directors at the beginning of such period or who
                           were directors previously so approved, (3) there is a
                           dissolution or liquidation of the Company or any sale
                           or disposition of 50% or more of the assets or
                           business of the Company, or

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                           (4) there is a reorganization, merger, consolidation
                           or share exchange (other than a reorganization,
                           merger, consolidation, or share exchange with a
                           wholly-owned subsidiary of the Company) of the
                           Company unless (A) the persons who were the
                           beneficial owners of the outstanding shares of the
                           common stock of the Company immediately before the
                           consummation of such transaction beneficially own
                           more than 50% of the outstanding shares of the common
                           stock of the successor or survivor corporation in
                           such transaction immediately following the
                           consummation of such transaction and (B) the shares
                           of the common stock of such successor or survivor
                           corporation beneficially owned by the persons
                           described in clause (A) immediately following the
                           consummation of such transaction are beneficially
                           owned by each such person in substantially the same
                           proportion that each such person had beneficially
                           owned shares of Company common stock immediately
                           before the consummation of such transaction.

                  (b)      OCCURRENCE OF A CHANGE OF CONTROL TERMINATION
                           ELECTION. Upon the occurrence of (x) a Change of
                           Control (as defined below) and (y) Executive's
                           election to terminate this Agreement, as set forth in
                           Section 9(b), Executive shall be entitled to receive
                           an amount equal to the greater of (1) one year's
                           salary as provided in Section 3(a) of this Agreement
                           and (2) 50% of the amount provided in Sections 3(a)
                           and 3(b)(ii) that otherwise would have been payable
                           to Executive for the remainder of the Employment
                           Period.

                  (c)      TIME OF BONUS PAYMENTS FOLLOWING CHANGE OF CONTROL
                           TERMINATION ELECTION. All payments of bonuses due to
                           Executive pursuant to Section 9(b)(ii) of this
                           Agreement shall be paid by the later of (y) ninety
                           (90) days after the Change of Control Event and (z)
                           receipt of the audit relating to the financial
                           statements of MTLM for the fiscal year during which
                           the Change of Control Event occurred.

         11.      CONFIDENTIALITY OF INFORMATION; DUTY OF NON-DISCLOSURE.
Executive acknowledges and agrees that his employment by MTLM under this
Agreement necessarily involves his understanding of and access to certain trade
secrets and confidential information pertaining to the business of MTLM or any
subsidiary or affiliate of MTLM. Accordingly, during the Employment Period, and
until the expiration of the Non-Competition Period, Executive shall not,
directly or indirectly, without the prior written consent of MTLM, disclose to
or use for the benefit of any person, corporation or other entity, or for
himself any and all files, trade secrets or other confidential information
concerning the internal affairs of MTLM or any subsidiary or affiliate of MTLM,
including, but not limited to, confidential information pertaining to clients,
services, products, earnings, finances, operations, methods or other activities;
provided, however, that the foregoing shall not apply to information which is of
public record or is generally known, disclosed or available to the general
public or the industry generally. Further, Executive shall not, directly or
indirectly, remove or retain, without the express prior written consent of MTLM,
and upon termination of this Agreement for any reason shall return to MTLM, any
confidential figures, calculations, letters, papers, records, computer

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disks, computer print-outs, lists, documents, instruments, drawings, designs,
programs, brochures, sales literature, or any copies thereof, or any information
or instruments derived therefrom, or any other similar information of any type
or description, however such information might be obtained or recorded, arising
out of or in any way relating to the business of MTLM or any subsidiary or
affiliate of MTLM or obtained as a result of his employment by MTLM or any
subsidiary or affiliate of MTLM. Executive acknowledges that all of the
foregoing are proprietary information, and are the exclusive property of MTLM.
The covenants contained in this Section 11 shall survive the termination of this
Agreement.

         12.      AUTHORITY; ENFORCEABILITY. MTLM has full corporate power and
authority to execute and deliver this Agreement and to perform its obligations
hereunder. The execution and delivery of this Agreement, the performance by MTLM
of its obligations hereunder have been duly and validly authorized by all
necessary corporate action on the part of MTLM. This Agreement has been duly
executed and delivered by MTLM and constitutes a valid and binding agreement of
MTLM, enforceable against MTLM in accordance with its terms, subject to
applicable bankruptcy, insolvency and other similar laws affecting the
enforceability of creditors' rights generally, general equitable principles and
the discretion of courts in granting equitable remedies.

         13.      GOODWILL. MTLM has invested substantial time and money in the
development of its products, services, territories, advertising and marketing
thereof, soliciting clients and creating goodwill. By accepting employment with
MTLM, Executive acknowledges that the customers are the customers of MTLM and
its subsidiaries and affiliates and that any goodwill created by Executive
belongs to and shall inure to the benefit of MTLM.

         14.      NO DUTY TO MITIGATE. In the event that Executive's employment
terminates hereunder, MTLM acknowledges and agrees that Executive has no duty to
mitigate the costs to MTLM with respect to any amounts payable hereunder to the
Executive.

         15.      NOTICES. Any notice or request to be given hereunder to either
party hereto shall be deemed effective only if in writing and either (a)
delivered personally or (b) sent by certified or registered mail, postage
prepaid, to the following addresses or to such other address as either party may
hereafter specify to the other by notice similarly served:

                  If to Executive:

                  Daniel Dienst
                  c/o Michael Schwartzbard
                  358 Eisenhower Parkway
                  Roseland, New Jersey 07068

                                       10
<PAGE>

                  with a copy to:

                  Blank Rome LLP
                  The Chrysler Building
                  405 Lexington Avenue
                  New York, New York 10174
                  Attn: Michael S. Mullman

                  If to MTLM:

                  Metal Management, Inc.
                  500 N. Dearborn Street
                  Suite 600
                  Chicago, Illinois  60610
                  Attn: President

                  with a copy to:

                  King & Spalding LLP
                  1185 Avenue of the Americas
                  New York, New York 10036
                  Attn: E. William Bates, II
                        Lawrence A. Larose

         16.      ASSIGNMENT. Except as set forth in Section 9(b) of this
Agreement, this Agreement shall be binding upon and inure to the benefit of the
successors and assigns of MTLM, whether by merger, sale of assets or otherwise.
This Agreement shall be binding upon and inure to the benefit of Executive's
heirs.

         17.      ATTORNEYS' FEES. (a) Upon receipt by MTLM of statement for
legal services from the attorneys representing Executive, MTLM shall reimburse
Executive or to pay on behalf of Executive the reasonable and necessary
attorneys' fees and associated expenses incurred by Executive in connection with
the negotiation of this Agreement.

                  (b)      In the event suit or action is brought by any party
under this Agreement to enforce or construe any of its terms, the prevailing
party shall be entitled to recover, in addition to all other amounts and relief,
its reasonable and necessary attorneys' fees and associated expenses incurred at
and in preparation for arbitration, trial, appeal and review.

         18.      GOVERNING LAW. This Agreement shall be construed and enforced
in accordance with the laws of the State of New York without reference to its
choice-of-law principles.

         19.      MODIFICATION. No modification or waiver of any provision
hereof shall be made unless it is in writing and signed by both of the parties
hereto.

         20.      SCOPE OF AGREEMENT. This Agreement constitutes the whole of
the agreement between the parties on the subject matter, superseding all prior
oral and written conversations,

                                       11
<PAGE>

negotiations, understandings, and agreements in effect as of the date of this
Agreement specifically including, but not limited to, the Prior Agreement.

         21.      SEVERABILITY. To the extent that any provision of this
Agreement may be deemed or determined to be unenforceable for any reason, such
unenforceability shall not impair or affect any other provision, and this
Agreement shall be interpreted so as to most fully give effect to its terms and
still be enforceable.

         22.      EXECUTION IN COUNTERPARTS. This Agreement may be executed in
any number of counterparts and by different parties in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                              METAL MANAGEMENT, INC.

                                              By_____________________________
                                                John T. DiLacqua
                                                Director

                                              _______________________________
                                              Daniel Dienst

                                       12
<PAGE>

                                                                       EXHIBIT A

                                  DIRECTORSHIPS

Metals USA, Inc. (Non-Executive Chairman of the Board of Directors)<PAGE>
                                                                    Exhibit 10.9

                        SEPARATION AND RELEASE AGREEMENT

         This Separation and Release Agreement ("Agreement") is entered into
between Metal Management, Inc., a Delaware corporation ("Company"), for and on
behalf of itself and any affiliated and related entities (hereinafter referred
to collectively as the "Company Affiliates" or, individually, as a "Company
Affiliate") and Albert A. Cozzi, an individual resident of the state of Illinois
("Executive"), this 18th day of January 2004. For purposes of this Agreement,
"affiliated and related entities" means, with respect to any entity or entities,
any other entity or entities directly or indirectly controlling, controlled by,
or under common control with, such entity or entities, as well as any joint
venture involving any such entity and, for purposes of this definition,
"control" means the power to direct or cause the direction of the management or
policies of the controlled entity.

         For and in consideration of the covenants and agreements set forth
herein, including the waiver and release by the parties of certain rights
thereof, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

         1.       Resignation. Executive hereby resigns as an employee,
director, board member, and/or officer of Company and all Company Affiliates of
which he is an employee, director, board member, and/or officer, effective as of
4:30 p.m. (CST) on January 16, 2004 (the "Resignation Date"), and shall take
such action as may be required to document such resignation as may be reasonably
requested by the applicable Company or Company Affiliate. Executive shall have
no further official duties after the Resignation Date. Executive's resignation
shall be treated as a unilateral termination by Executive, without "Good
Reason," as such term is defined in that certain Employment Agreement, dated
December 1, 1997 (as amended by that certain letter agreement, dated as of June
7, 2001 and that certain letter agreement dated as of June 13, 2001, the
"Employment Agreement"), by and between Executive and Company.

         2.       Post-Employment Compensation and Benefits. Subject to
withholding for taxes and other amounts required by law to be withheld, and to
the terms of any applicable benefit plans, Executive shall receive the
compensation and benefits described in this paragraph, provided that Executive
does not revoke this Agreement pursuant to paragraph 3(e). Executive
acknowledges and agrees that the releases, promises and obligations of Company
and the Company Affiliates pursuant to this Agreement constitute good and
valuable consideration for Executive's entering into this Agreement.

                  (a)      Executive shall receive an amount equal to Two
Million, Thirty-Nine Thousand, Two Hundred Sixty-Five U.S. Dollars ($2,039,265)
("Severance"), of which (i) One Million Six Hundred Two Thousand Four Hundred
Seventy-Eight U.S. Dollars ($1,602,478) which shall be paid on January 30,
2004 and (ii) Four Hundred Thirty-Six Thousand Seven Hundred Eighty-Seven U.S.
Dollars ($436,787) shall be paid on July 18, 2005. The Severance is inclusive of
all severance benefits, salary, short-term and long-term bonuses, and in lieu of
any and all other compensation (if any) to which Executive may be entitled,
including, without limitation, any payments arising under the Employment
Agreement, from Company or any

                                                            Initials of Parties

                                                         Executive _____________

                                                         Company _______________

<PAGE>

Company Affiliate, except as otherwise expressly provided in this paragraph 2,
and including salary and other amounts Executive is entitled to through the
Resignation Date. Except for the portion of this payment attributable to accrued
unpaid salary, this payment shall not be considered earnings for purposes of the
retirement, savings, 401(k) or other employee benefit plans of Company or any
Company Affiliate.

                  (b)      Executive shall not be eligible for any awards under
an incentive compensation plan of Company or any Company Affiliate.

                  (c)      All warrants for the purchase of Company common stock
previously awarded or granted to Executive are fully vested as of the
Resignation Date and are exercisable (according to the terms of the respective
plan or scheme pursuant to which such warrants were issued) for the remainder of
their respective exercise terms.

                  (d)      All shares of Company common stock subject to
forfeiture awarded or granted to Executive shall become fully non-forfeitable as
of the Resignation Date.

                  (e)      Executive shall be eligible to continued group health
plan coverage under Company's medical and dental plan in accordance with the
terms of provisions of such plan for a period of 18 months from the Resignation
Date at no charge to Executive.

                  (f)      Company shall reimburse Executive for up to $24,900
of the cost of life insurance purchased after the Resignation Date upon
submission to Company of proof of payments by Executive.

                  (g)      Except as otherwise expressly provided in this
paragraph 2, nothing in this Agreement shall limit or reduce any benefits or
rights Executive may have under any retirement, savings, deferred compensation,
401(k), or any other employee benefit plan of Company or any Company Affiliate,
or pursuant to any personal life insurance, health or annuity contract that
Executive may have with Company or any Company Affiliate; provided, further,
that, notwithstanding the provisions of this Section 2(f), neither Company nor
any Company Affiliate shall be liable to Executive for any non-vested matching
funds or other non-vested benefits under any retirement, savings, deferred
compensation, 401(k), or any other employee benefit plan of Company or any
Company Affiliate.

                  (h)      Attached hereto as Schedule "A" is a listing of all
of Executive's common stock subject to forfeiture described in this Section 2
that are outstanding as of this Agreement, along with the relevant grant dates.
This common stock shall become vested on the Resignation Date in accordance with
2(d) above.

         3. Release of Claims.

                  (a)      General. Executive acknowledges and agrees that this
Agreement includes a complete, final, and binding settlement, release and
covenant not to sue with respect to any claims he may have against the Releasees
(as defined below), including, but not limited to,

                                                            Initials of Parties

                                                         Executive _____________

                                                         Company _______________

                                     - 2 -
<PAGE>

all claims arising from or in any way related to Executive's employment with
Company or any of the Company Affiliates or the termination thereof, as well as
claims arising from any contracts, agreements, or employment relationships,
currently in force or contemplated, between Executive and Company and the
Company Affiliates.

                  (b)      Release. Executive hereby releases, discharges, and
covenants not to sue Company and the Company Affiliates, or any of them, and/or
their respective predecessors, successors, parents, subsidiaries, affiliates,
divisions, assigns, current or former employees, officers, directors,
shareholders, representatives, attorneys, and agents (collectively referred to
herein as "Releasees"), collectively, separately, and severally, from any and
all claims, causes of action, liabilities, and judgments of every type and
description whatsoever, known and unknown, arising under any state (including
the employment laws of State of Illinois), local, federal, administrative or
foreign (for purposes of this Agreement, "foreign" means the legal jurisdiction
of any sovereign state or country other than the United States of America) law
(including, but not limited to, claims arising under the Civil Rights Act of
1964, as amended; 42 U.S.C. Section 1981; the Rehabilitation Act of 1973, as
amended; the Employee Retirement Income Security Act of 1974, as amended; the
Fair Labor Standards Act of 1938, as amended; the Americans with Disabilities
Act; the Securities Act of 1933; the Securities Exchange Act of 1934; the Family
and Medical Leave Act; or claims for declaratory judgment, equitable relief, or
attorney's fees) which he, his heirs, administrators, executors, personal
representatives, beneficiaries, and assigns may have or claim to have against
Releasees for any reason whatsoever, which arise from events occurring prior to
the date of this Agreement, other than a claim to pay the benefits described in
Paragraph 2 hereof. Executive understands and agrees that the payments made to
him pursuant to this Agreement and this release include and encompass therein
any and all claims with respect to attorneys' fees, costs, and expenses for or
by any and all attorneys who have represented him or with whom he has consulted
or who have done anything in connection with the subject matter of this
Agreement or any and all claims released herein. Notwithstanding anything
contained herein to the contrary, nothing in this subparagraph shall prevent
Executive from bringing a claim or claims to enforce the terms of this
Agreement.

                  (c)      Release of Claims under the Age Discrimination in
Employment Act of 1967, as Amended. In addition to the foregoing, Executive
hereby knowingly and voluntarily releases, discharges and covenants not to sue
or move for arbitration in any court or other tribunal, Releasees, collectively,
separately and severally, from or for any and all liability, claims,
allegations, and causes of action arising under the Age Discrimination in
Employment Act of 1967, as amended ("ADEA"), which Executive, Executive's heirs,
administrators, executors, personal representatives, beneficiaries, and assigns
may have or claim to have against Releasees.

                  (d)      Opportunity to Consider/Consideration. Executive
hereby acknowledges and represents that Executive (i) has been advised in
writing to consult with an attorney prior to executing this Agreement, (ii) has
been given the opportunity to consider for a period of at least 21 days the
terms of this Agreement and (iii) has received valuable and good consideration
to which Executive is otherwise not entitled in exchange for Executive's
execution of this Agreement.

                                                            Initials of Parties

                                                         Executive _____________

                                                         Company _______________

                                     - 3 -
<PAGE>

                  (e)      Revocation Period. The parties hereby acknowledge
that Executive may revoke the release by Executive set forth in subparagraphs
3(b) and 3(c) (the "General Release") at any time prior to 5:00 p.m. on the
seventh day after this Agreement is executed by Executive (the "Effective Date")
and that the General Release and agreements of Company set forth in Section 2
and this Section 3 shall not be effective or enforceable prior to the Effective
Date unless Executive shall not have revoked the General Release in accordance
with the terms hereof on or prior to the Effective Date. In the event Executive
chooses to exercise Executive's option to revoke the General Release, Executive
shall notify Company in writing to Company's agent designated below for this
purpose, and return all monies paid pursuant to this Agreement (if any) no later
than 5:00 p.m. on the Effective Date. Such notice shall be delivered by
registered or certified mail, return receipt requested and addressed as follows:

         Metal Management, Inc.
         500 N. Dearborn Street
         Suite 600
         Chicago, Illinois  60610
         Attn: Daniel Dienst

         with a copy to:

         King & Spalding LLP
         1185 Avenue of the Americas
         New York, New York  10036
         Attn: E. William Bates, II, Esq.
               Lawrence A. Larose, Esq.

                  (f)      Full Settlement and Agreement. Executive agrees that
this Agreement resolves any and all claims which have been or might be filed by
Executive or on Executive's behalf against any Releasees with any State of
Illinois administrative agency, the Equal Employment Opportunity Commission (the
"EEOC") and any other federal, state, or local court, tribunal agency or
commission of the United States, or of any other sovereign state or country as
of the Effective Date and as specified in subparagraphs 3(b) or 3(c) above.
Executive agrees that this Agreement constitutes a full resolution of any and
all such claims, and if any action should be taken to pursue any such charge,
any or all Releasees shall be entitled to a protective order against or summary
judgment dismissing any such action, and neither he nor anyone on Executive's
behalf shall file or cause to be filed any charge, claim, or complaint in any
forum against any of the Releasees.

                  (g)      Release and Indemnification by Company. Company and
Company Affiliates hereby release, discharge, and covenant not to sue Executive
from any and all claims, causes of action, liabilities, and judgments of every
type and description whatsoever, arising under any state, local, federal,
administrative or foreign law (including, but not limited to claims for
declaratory judgment, equitable relief, or attorney's fees) which they may have
or claim to have against Executive for any reason whatsoever, excluding theft or
fraud. Further, Company and Company Affiliates, jointly and severally, agree to
indemnify and hold Executive harmless

                                                            Initials of Parties

                                                         Executive _____________

                                                         Company _______________

                                     - 4 -
<PAGE>

from any and all claims, causes of action, liabilities, and judgments of every
type and description whatsoever, known and unknown, excluding theft or fraud,
arising under any state, local, federal, administrative or foreign law
(including, but not limited to claims for declaratory judgment, equitable
relief, or attorney's fees) brought against him by or on behalf of any other
Company Affiliate, including, without limitation, the Releasees (or other
association for which Executive served as an officer or in a similar business
capacity on behalf of or in his capacity as an officer of Company or any Company
Affiliate), which arise from events occurring prior to the Effective Date.
Notwithstanding anything contained herein to the contrary, nothing in this
subparagraph shall prevent Company or any Company Affiliate from bringing a
claim or claims for theft or fraud or to enforce the terms of this Agreement.

         4.       Non-Assignment. Executive, Company and Company Affiliates each
represent, warrant and agree that they have not assigned, transferred, sold or
hypothecated any of the claims released by this Agreement. The parties covenant
and agree that if there is any claim arising from the assignment, sale or
hypothecation of any claim released hereunder, the party who assigned, sold or
hypothecated such claim shall indemnify and hold the other party harmless from
any liability, including costs and expenses (as well as reasonable attorneys'
fees) incurred as a result of any such claim.

         5.       Indemnification for Loss of Consortium. Executive covenants
and agrees that if there is any claim for loss of consortium against Releasees,
or any other similar claim, arising out of or related to Executive's
relationship or transactions with Company or any Company Affiliate (including
not limited to his employment or separation of employment with Company and any
Company Affiliate), Executive agrees to indemnify and hold Company and any
Company Affiliate harmless from any liability, including costs and expenses (as
well as reasonable attorneys' fees) incurred by Company or any Company Affiliate
as a result of any such claim.

         6.       Confidentiality.

                  (a)      Except as otherwise specifically provided in Section
6(b) of this Agreement, Executive represents, agrees and covenants that he has
maintained and shall continue to maintain the confidentiality of, and not to
disclose, reveal, publish, disseminate, or discuss, directly or indirectly, to
or with any other person or entity the terms of this Agreement (including
whether or not any amount was paid, the amount paid, or information he may have
with respect to this Agreement).

                  (b)      The following disclosures, which are specific
exceptions to Section 6(a) above, are permitted in the following limited
circumstances:

                           (i)      Executive may make such disclosures as are
                                    reasonably necessary for tax reporting
                                    purposes;

                           (ii)     Executive may disclose the terms and amount
                                    paid under this Agreement as reasonably
                                    necessary to obtain legal, tax, or
                                    accounting advice or services;

                                                            Initials of Parties

                                                         Executive _____________

                                                         Company _______________

                                     - 5 -
<PAGE>

                           (iii).   Executive is permitted to disclose the terms
                                    of this Agreement to the extent required in
                                    any legal proceeding involving the
                                    enforcement of this Agreement, but, as to
                                    any other legal proceedings, Executive is
                                    permitted to disclose the terms of this
                                    Agreement only to the extent (1)
                                    specifically requested and consented to in
                                    writing by an officer or other authorized
                                    representative of Company or the Company
                                    Affiliates, or (2) compelled pursuant to a
                                    subpoena or other court order, provided,
                                    however, that before disclosing this
                                    Agreement pursuant to a subpoena or court
                                    order, Executive shall provide notice to
                                    Company that Executive has been served with
                                    such subpoena or court order, including by
                                    providing Company with a copy thereof, and
                                    shall not disclose this Agreement before
                                    Company or another Company Affiliate (if
                                    relevant to the matter at hand) has had the
                                    opportunity to object to such disclosure
                                    within the time allowed by law or otherwise
                                    to act to protect such information from
                                    disclosure.

                           (iv).    Executive is permitted to disclose the terms
                                    of this Agreement to his spouse, provided
                                    that his spouse has been advised of and
                                    agrees to abide by the requirements of this
                                    Section 6.

                           (v).     Notwithstanding anything contained herein to
                                    the contrary, Executive's communications
                                    regarding this Agreement to members of the
                                    board of directors of Company on or prior to
                                    the date of this Agreement shall not be
                                    considered a violation of this Section 6.

         7.       Nondisclosure.

                  (a)      Introduction. Executive acknowledges and agrees that
he has been employed as the Chief Executive Officer of Company, serves as
director, board member and/or officer of several other Company Affiliates, and
in his senior executive role has been privy to other confidential and
proprietary information relating to Company and the Company Affiliates. In light
of the foregoing, Executive agrees to hold in a fiduciary capacity and keep
confidential certain information relating to Company and the Company Affiliates,
as set forth in this paragraph 7.

                  (b)      Nondisclosure of Attorney-Client Communications and
Work Product. Executive acknowledges and agrees that during the term of his
employment, Executive has been exposed to or has had access to the confidential
attorney-client communications of Company and the Company Affiliates and
attorney work product relating to Company and the Company Affiliates. Executive
hereby agrees that he shall not directly or indirectly use or disclose any
information or document conveyed to him in the course of his employment that is
a confidential attorney client communication or is attorney work product except
to the attorneys of the applicable Company or Company Affiliates or as required
by a validly issued court order.

                                                            Initials of Parties

                                                         Executive _____________

                                                         Company _______________

                                     - 6 -
<PAGE>

                  (c)      Acknowledgement of Access to Trade Secrets and
Confidential Information. Executive acknowledges and agrees during his
employment as the Chief Executive Officer of Company and in his capacity as an
officer, director, and/or board member of other Company Affiliates, Executive
was intimately involved in developing business strategy and planning for Company
and the Company Affiliates, and was provided or had access to Trade Secrets and
Confidential Information of Company and the Company Affiliates, including but
not limited to present and future operations of Company and the Company
Affiliates, their customers, distributors, and suppliers, marketing, pricing and
bidding strategies, and the methods used by Company and the Company Affiliates
and their respective employees. Executive acknowledges and agrees that such
information has been developed or obtained by Company and the Company Affiliates
by the investment of significant time, effort and expense, and that such
information is a valuable, special and unique asset of Company and the Company
Affiliates which provides them with a significant competitive advantage.
Executive further understands and acknowledges that such information is
proprietary to Company and the Company Affiliates and that, if exploited by
Executive in contravention of this Agreement, would seriously, adversely and
irreparably affect the business of Company and the Company Affiliates.

                  (d)      Nondisclosure of Trade Secrets. Executive hereby
agrees that he shall not directly or indirectly use or disclose any Trade Secret
of Company or the Company Affiliates for so long as such information remains a
Trade Secret. As used herein, a Trade Secret includes, but is not limited to,
any technical or non-technical data, a formula, a pattern, a compilation, a
program, a device, a method, a technique, a drawing, a process, financial data,
financial plans, product plans, or a list of actual or potential customers or
suppliers which: (i) derives economic value, actual or potential from not being
generally known to, and not being readily ascertainable by proper means by,
other persons who can obtain economic value from its disclosure or use; (ii) is
the subject of reasonable efforts by Company or any Company Affiliate to
maintain its secrecy; and (iii) is not otherwise in the public domain.

                  (e)      Nondisclosure of Confidential Information. In
addition to the foregoing, and not in limitation thereof, Executive agrees that
for a period of 18 months after the Resignation Date, Executive shall hold in a
fiduciary capacity for the benefit of Company and each of the Company Affiliates
and shall not directly or indirectly use or disclose any Confidential
Information, as defined herein, that Executive may have acquired (whether or not
developed or compiled by Executive and whether or not Executive was authorized
to have access to such information) during the term of, in the course of or as a
result of Executive's employment by or in the performance of Executive's duties
for Company or any Company Affiliate. The term "Confidential Information" as
used in this Agreement means any secret, confidential or proprietary information
of Company or any Company Affiliate not otherwise included in the definition of
"Trade Secrets" above. The term "Confidential Information" does not include
information that has become generally available to the public (unless Executive
is aware that the information has been made public in contravention of a
contractual, statutory or fiduciary duty).

                  (f)      Remedies Not Exclusive. Executive hereby acknowledges
and agrees that the prohibitions against disclosure of Confidential Data or
Trade Secrets recited herein are in

                                                            Initials of Parties

                                                         Executive _____________

                                                         Company _______________

                                     - 7 -
<PAGE>

addition to, and not in lieu of, any rights or remedies that Company or any
Company Affiliate may have available pursuant to the laws of any jurisdiction or
common law or judicial precedent, to prevent the disclosure of trade secrets or
proprietary information, and the enforcement by Company or any Company Affiliate
of their rights and remedies pursuant to this Agreement shall not be construed
as a waiver of any other rights or available remedies that they may possess in
law or equity absent this Agreement.

         8.       Return of Property.

                  (a)      Company Property. Executive shall, promptly after the
date of this Agreement, make available to Company and the Company Affiliates, or
its representative, (a) all memoranda, notes, records, manuals or other
documents (including, but not limited to, written instruments, voice or data
recordings, or computer tapes, disks or files of any nature), including all
copies of such materials and all documentation prepared or produced in
connection therewith, pertaining to the performance of Executive's services for
Company and the Company Affiliates or the business of Company and the Company
Affiliates whether compiled by Executive or furnished to Executive by virtue of
his employment with Company or any Company Affiliate, and (b) all equipment,
automobiles, computers, credit cards, telephones, office equipment, software,
and other property that Company or any Company Affiliate furnished to Executive
by virtue of his employment with such Company or Company Affiliate.
Notwithstanding the foregoing, the parties agree that Executive may retain
copies of documents relating to his own employment, compensation, benefits, and
retirement benefits.

                  (b)      Executive Property. Company shall, promptly after the
date of this Agreement and in cooperation with Executive, identify all of
Executive's personal property located on Company's premises and deliver to
Executive's home address all such property.

         9.       Restrictive Covenants.

                  (a)      Introduction. Executive acknowledges and agrees that
he has been employed as the Chief Executive Officer of Company, serves as
director, board member and/or officer of several other Company Affiliates, and
in his senior executive role has been privy to other confidential and
proprietary information relating to Company and the Company Affiliates, each
individually and as a whole. Executive acknowledges and agrees that the use or
disclosure of Company's and the Company Affiliates' Trade Secrets and
Confidential Information in competition with Company and each of the Company
Affiliates, or any of them, could cause serious harm to Company and the Company
Affiliates. The parties recognize that an important part of Executive's duties
was to develop business strategies, supervise employees performing a variety of
services, and to develop goodwill for Company and the Company Affiliates through
Executive's personal contact with customers, agents and others having business
relationships with Company and the Company Affiliates. There is therefore a
danger that this goodwill, a proprietary asset of Company and each Company
Affiliate, may follow Executive when his relationship with Company and the
Company Affiliates is terminated. The parties further recognize that such
knowledge of Company's, and the Company Affiliates' business strategies,
employees, Trade Secrets and Confidential Information would enable Executive to
compete

                                                            Initials of Parties

                                                         Executive _____________

                                                         Company _______________

                                     - 8 -
<PAGE>

unfairly with Company and the Company Affiliates. In light of the foregoing,
Executive acknowledges and reaffirms his obligation and agreement to abide by
the terms of the restrictive covenants as set forth below.

                  (b)      Noncompetition. In addition to any other obligation
of Executive under any other agreement with Company or any Company Affiliate, in
order to assure that Company shall realize the benefits of this Agreement,
Executive agrees that, for a period of 18 months following the Resignation Date,
he shall not directly or indirectly, alone or as a partner, joint venturer,
member, officer, director, employee, consultant, agent, independent contractor,
stockholder, creditor or in any other capacity, engage in any activity in any
state that is directly or indirectly in competition in any respect with Company,
any Company Affiliate or the Business; provided, however, that, the beneficial
ownership of less than 5% of the shares of stock of any corporation having a
class of equity securities actively traded on a national securities exchange or
over-the-counter market shall not be deemed, in and of itself, to violate the
prohibitions of this Section. As used in this Agreement, "Business" means the
businesses of collecting, delivering, processing, tolling, supplying, brokering
and/or recycling ferrous and/or non-ferrous metals, including, without
limitation, (i) collecting, delivering processing, tolling, supplying, brokering
and/or recycling industrial scrap metal and/or obsolete scrap metal, (ii)
producing shredded, sheared, torched, cold briquetted and/or bundled scrap
metal, turnings, cast and broken furnace iron, and/or (iii) collecting,
delivering, processing, tolling, supplying, brokering and/or recycling aluminum,
stainless steel, copper, brass, titanium and high-temperature alloys, each of
which Executive agrees is the business in which he provided services and/or
oversight to Company and each Company Affiliate as of the Resignation Date.

                  (c)      Nonsolicitation of Employees. Executive covenants and
agrees that, for a period of 18 months following the Resignation Date, Executive
shall not solicit, or take away, or attempt to solicit or take away, any person
who either is an employee of Company or any Company Affiliate as of the
Resignation Date or who was an employee of Company or any Company Affiliate at
any time during the six-month period immediately preceding the Resignation Date,
either on Executive's behalf or on behalf of any other individual or entity.

                  (d)      Nonsolicitation of Suppliers, Customers and Business
Partners. Executive covenants and agrees that, for a period of 18 months
following the Resignation Date, Executive shall not solicit, call upon, divert
or take away, or attempt to solicit, call upon, divert or take away, for the
purpose of competing with Company, any Company Affiliate or the Business, any
supplier or customer of Company, any Company Affiliate or the Business.
Executive further covenants and agrees that, for a period of 18 months following
the Resignation Date, Executive shall not solicit or call upon, or attempt to
solicit or call upon, any agent or agency, broker, broker-dealer, financial
planner, registered principal or representative, supplier or service provider of
any entity or person, if the purpose of such solicitation is either (i) to
compete with Company, any Company Affiliate or the Business or (ii) to encourage
that person or entity to terminate, diminish or alter the business relationship
between Company or any Company Affiliate and that person or entity.

                  (e)      Equitable Relief. Executive acknowledges that the
services rendered by

                                                            Initials of Parties

                                                         Executive _____________

                                                         Company _______________

                                     - 9 -
<PAGE>

Executive to Company and the Company Affiliates have been of a special, unique,
unusual and extraordinary character, which gives them a peculiar value, the loss
of which cannot reasonably or adequately be compensated in damages in an action
at law, and that a breach by Executive of any of the provisions contained in
this Agreement shall cause Company and the Company Affiliates irreparable injury
and damage. Executive further acknowledges that Executive possesses confidential
and proprietary information regarding Company and the Company Affiliates and
that any material breach of the provisions of this Agreement would be extremely
detrimental to Company and the Company Affiliates. By reason thereof, Executive
agrees that Company and the Company Affiliates shall be entitled, in addition to
any other remedies they may have under this Agreement or otherwise, to
injunctive and other equitable relief to prevent or curtail any breach of this
Agreement by Executive; provided, however, that no recital in this Agreement of
a specific legal or equitable remedy shall be construed as a waiver or
prohibition against the pursuing of other legal or equitable remedies in the
event of a breach.

         10.      Agreements to Cooperate.

                  (a)      By Executive. Executive covenants and agrees that
following the Resignation Date, Executive shall cooperate with Company and the
Company Affiliates in any pending or future inquiry, audit, litigation,
investigation or other dispute, in which Executive, by virtue of Executive's
prior relationship with Company or any Company Affiliate, has relevant knowledge
or information. Executive further agrees and covenants that, in any such matter
he shall, without the necessity for subpoena, in any jurisdiction, provide
truthful testimony or information relevant to said matter. The parties
acknowledge and agree that Executive, as a former officer and director of
Company and certain Company Affiliates, is entitled to indemnification to the
same extent and upon the same conditions as active officers or directors of such
entities, in actions, suits or proceedings of whatever nature brought against
Executive by reason of the fact that he was an officer or director of Company
and certain Company Affiliates. Executive shall be reimbursed for the reasonable
cost of travel, lodging, meals and automobile rental and reasonable attorneys'
fees and expenses incurred by Executive in complying with this paragraph. In
addition, after the date which is 18 months after the Resignation Date,
Executive shall receive reasonable per diem compensation for each day that
Executive shall be required by Company to perform services pursuant to the
requirements of this Section 10. Any request for cooperation shall be limited to
the minimum amount of Executive's time as is reasonably necessary to accomplish
the business purpose.

                  (b)      By Company. Company shall use reasonable efforts to
effect the timely issuance of common stock issuable in respect of Executive's
warrants promptly following Executive's notice of exercise of such warrants and
will provide reasonable assurances to any brokerage firm utilized by Executive
that the shares of common stock issued upon the exercise of such warrants and
the shares of restricted stock held by Executive have been duly registered under
the Securities Act of 1933, as amended.

                                                            Initials of Parties

                                                         Executive _____________

                                                         Company _______________

                                     - 10 -
<PAGE>

         11.      Non-Disparagement.

                  (a)      By Executive. Except as otherwise required by law,
Executive hereby agrees and covenants that he shall not make any statement,
written or verbal, in any forum or media, or take any other action, in
disparagement of Company or any Company Affiliate. Without limiting the
foregoing, the statements prohibited by this section include negative references
to Company's or any Company Affiliates' products, services, corporate policy,
officers and/or directors.

                  (b)      By Company. Except as otherwise required by law,
Company hereby agrees and covenants that it shall cause all officers and
directors of Company (including, but not limited to, members of Company's Board
of Directors, President and bChief Financial Officer) to refrain from making any
statement, written or verbal, in any forum or media, or taking any other action,
either directly or indirectly through the officers or employees of Company or
any Company Affiliate, in disparagement of Executive. Without limiting the
foregoing, the statements prohibited by this section include negative references
to Executive's service as an employee, officer, director or board member of
Company or the Company Affiliates but do not include statements regarding any
claims not released in subsection 3(e) above.

         12.      Applicable Law. This Agreement has been entered into in and
shall be governed by and construed under the laws of the State of New York
without reference to the choice of law principles thereof.

         13.      Successors. This Agreement shall be binding on the parties
hereto and their respective heirs, successors and assigns.

         14.      Arbitration. Subject to Company's and the Company Affiliates'
right to seek immediate injunctive or equitable relief as described in paragraph
9(d) above, any dispute, controversy, or claim arising out of or relating to
this Agreement, the breach, termination or invalidity thereof, or Executive's
employment, including claims of tortious interference or other tort or statutory
claims, and including without limitation any dispute concerning the scope of
this arbitration clause, shall be settled by arbitration administered by the
American Arbitration Association in accordance with the Employment Dispute
Resolution Rules then in effect. If a dispute arises between the parties, the
parties agree that their respective representatives shall meet and consult in
good faith and attempt to settle the dispute, within 30 days of written notice
thereof, as a condition precedent to the initiation of arbitration proceedings
hereunder. If the parties are unable to resolve their differences within that
30-day period, then within ten days thereafter, the parties shall select three
arbitrators from a list of potential arbitrators supplied by the American
Arbitration Association, in accordance with the arbitrator selection procedures
of the American Arbitration Association then in effect. Not later than 45 days
following the selection of the arbitrators, a hearing shall be convened by the
arbitrators in Chicago, Illinois. At such hearing, each party shall be entitled
to present arguments in favor of, and call witnesses in support of such party's
position with respect to the item in dispute; provided, however, that absent a
written agreement of the parties to the contrary, presentation and/or arguments
(including the direct testimony of any witnesses called by a party) of each side
of the dispute

                                                            Initials of Parties

                                                         Executive _____________

                                                         Company _______________

                                     - 11 -
<PAGE>

shall be limited to five hours. The judgment on the award rendered by the
arbitrator may be entered in any court having jurisdiction thereof.

         15.      Severability. If fulfillment of any provision of this
Agreement, at the time such fulfillment shall be due, shall transcend the limit
of validity prescribed by law, then the obligation to be fulfilled shall be
reduced or modified to the limit of such validity; and if any clause or
provision contained herein operates or would operate to invalidate this
Agreement in whole or in part, then such clause or provision only shall be held
ineffective as though not herein contained, and the remainder this Agreement
shall remain in full force and effect.

         16.      Understanding. Executive herewith covenants and agrees that he
has read and fully understands the contents and the effect of this Agreement.
Executive accepts each and all of the terms, provisions, and conditions of this
Agreement, and does so voluntarily and with full knowledge and understanding of
the contents, nature, and effect of this Agreement.

         17.      Attorneys' Fees, Costs and Expenses. Company shall reimburse
Executive for reasonable attorneys' fees and expenses incurred by Executive in
connection with the preparation and negotiation of this Agreement. In addition,
if any arbitration proceeding or action at law or in equity is necessary to
enforce or interpret the terms of this Agreement, the prevailing party shall be
entitled to reasonable attorneys' fees, costs and necessary disbursements in
addition to any other relief to which such party may be entitled.

         18.      Third Party Beneficiaries. The Company Affiliates shall be
third-party beneficiaries of this Agreement for the purposes enforcing
paragraphs 3 through 19 hereof. Except as expressly provided herein, there are
no third party beneficiaries of this Agreement and this Agreement shall inure
solely to the benefit of the parties hereto and the Company Affiliates.

         19.      Entire Agreement; Miscellaneous. Except as expressly provided
herein, the parties acknowledge and agree that they are not relying on any
representations, oral or written, other than those expressly contained in this
Agreement. Except as expressly provided herein, this Agreement supersedes all
prior agreements, proposals, negotiations, conversations, discussions and course
of dealing between the parties, including but not limited to any employment,
severance or benefits agreements between Company or any Company Affiliate and
Executive. Section headings are for convenience of reference only and are not
intended to create substantive rights or obligations. This Agreement may be
executed in counterparts, each of which shall be deemed an original, and
together shall constitute one and the same Agreement.

                                                            Initials of Parties

                                                         Executive _____________

                                                         Company _______________

                                     - 12 -
<PAGE>

         This Agreement was executed in duplicate with all pages preceding the
signature page having been initialed by all parties hereto. GIVEN under the hand
and seal of the parties or by their duly authorized agent, as of the date first
above written.

EXECUTIVE:

_______________________________________
Albert A. Cozzi

COMPANY:

METAL MANAGEMENT, INC.

By____________________________________
         Daniel Dienst
         Chief Executive Officer and
         Chairman of the Board

                                                            Initials of Parties

                                                         Executive _____________

                                                         Company _______________

                                     - 13 -
<PAGE>

                                   SCHEDULE A

<TABLE>
<CAPTION>
 WARRANT/OPTION              GRANT DATE              NUMBER
 --------------              ----------              ------
<S>                         <C>                      <C>
Restricted Stock            May 12, 2003             15,000
Restricted Stock            May 20, 2003              5,580
</TABLE>

                                                            Initials of Parties

                                                         Executive _____________

                                                         Company _______________

                                     - 14 -

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