Document:

exv10w15

Exhibit 10.15

[FHL Bank Pittsburgh letterhead]

August 19, 2009

Winthrop Watson

9B Harston

109 Repulse Bay Road

Hong Kong

Dear Winthrop:

On behalf of the Federal Home Loan Bank of Pittsburgh (the “Bank”), I am very pleased to
offer you the position of Chief Operating Officer of the Bank at a monthly base salary of
$35,416.67 (before withholding of applicable taxes) and on such other terms and conditions as are
set forth in this offer letter (this “Letter”). In addition, you will receive a signing
bonus of $75,000 promptly following your Start Date and a guaranteed bonus of $80,000 for 2010,
payable on or about December 1, 2010 (each amount is stated before withholding of applicable
taxes). The signing bonus shall be paid on or before December 31, 2009.

 Recognizing that you must comply with your company’s “Garden Leave,” providing for a specified
notice period to your current employer], your actual employment start date in 2009 will be
determined later (the actual date you commence employment, is referred to as your “Start
Date”); provided, however, that in the event the Bank elects not to have you
begin employment after you execute this Letter and you have provided documentation satisfactory to
the Bank that your employment with the Bank would not be in breach of any obligations to your
current employer, then, such event will be deemed a termination of your employment by the Bank
without “cause”.

The Bank offers a competitive benefits package in addition to your base salary; the benefits plans
and arrangements included are described below. You are entitled to participate in these benefit
plans and arrangements (including any additional or replacement benefit plans or arrangements that
now exist or are later implemented or established for the benefit of senior executives and/or
employees generally), subject to their applicable terms and conditions.

	 	•	 	Participation in the Bank’s 2009 Temporary Incentive Plan (the “2009 TIP”),
under which you are eligible for a base incentive award of up to 18% of your annual
base salary on a prorated basis from the date of your hire. You are also eligible for
an additional incentive award opportunity of up to 22%, annually, if certain financial
performance goals are met. Your participation for this additional incentive is
pro-rated for 2009 as well. Please note that the Board of Directors has approved the
annual base salary incentive and the additional incentive as part of the Temporary
Incentive Plan and that the plan is currently pending approval by the Federal Housing
Finance Agency (the “Finance Agency”).

 

 

Mr. Winthrop Watson

August 19, 2009

Page 2

	 	•	 	Participation in the Bank’s qualified Defined Benefit Pension and Defined
Contribution 401(K) Plans.
	 
	 	•	 	Participation in the Bank’s nonqualified Supplemental Executive Retirement Plan and
Supplemental Thrift Plan.
	 
	 	•	 	Health insurance, life insurance, vacation and other benefit plans and programs
offered by the Bank to its employees generally as in effect from time to time.
	 
	 	•	 	Use of a Bank-owned automobile up to a value of $40,000.
	 
	 	•	 	Reimbursement of parking expenses under the Bank’s policy up to the Bank’s maximum
(currently $205 per month).
	 
	 	•	 	Relocation allowance of $75,000 to cover the cost of selling and purchasing a home;
house hunting trips for you and your spouse; temporary living accommodations for a
period of up to six months; moving and storage of all household furnishing and personal
belongings; and incidental expenses associated with the relocation of you and your
family.
	 
	 	•	 	Reimbursement for financial planning and tax preparation up to $2,000 annually.
	 
	 	•	 	Club membership for business purposes.
	 
	 	•	 	Payment or reimbursement for other out-of-pocket business expenses in accordance
with the terms and conditions of the Bank’s expense reimbursement policy.

You and the Bank will also enter into a Change in Control Agreement and an Indemnification
Agreement (forms of which are attached hereto as Exhibits A and B, respectively) no later than five
(5) business days after your employment with the Bank commences.

In addition to the protections provided by the Indemnification Agreement referenced above, you will
be entitled to directors’ and officers’ liability insurance coverage at levels and on terms and
conditions that are no less favorable to you in any material respect than those applicable to any
other current or former officer or director of the Bank. Such directors’ and officers’ liability
insurance coverage shall remain in effect for so long as such coverage remains in effect for any
other current or former officer or director of the Bank.

In the event the Bank terminates your employment without cause, this offer includes a severance
package of twelve (12) months of base salary continuation and medical coverage for the duration of
the severance period as well as outplacement assistance.

 

 

Mr. Winthrop Watson

August 19, 2009

Page 3

Notwithstanding the foregoing, your employment with the Bank is at-will. Either you or the Bank
may terminate your employment at any time, with or without cause and without notice. There will be
no restrictions on your post-employment activities.

This Letter will be governed, construed, performed and enforced in accordance with its express
terms and otherwise in accordance with the laws of the Commonwealth of Pennsylvania, without
reference to principles of conflict of laws; subject, however, to the Bank’s status as a federal
instrumentality and the Finance Agency’s authority over the matters that are the subject of this
Letter. Any dispute arising out of or relating to this Letter, any other plan, program, agreement,
or arrangement of the Bank (collectively, “Bank Arrangements”), your employment with the
Bank or the termination thereof (any such dispute, a “Dispute”) will be resolved by binding
confidential arbitration, to be held in Pittsburgh, Pennsylvania, in accordance with the Commercial
Arbitration Rules (and not the National Rules for Resolution of Employment Disputes) of the
American Arbitration Association and this Letter. Judgment upon the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof.

In the event of your termination, you will be under no obligation to seek other employment or to
otherwise mitigate the obligations of the Bank under this Letter, and there will be no offset
against amounts or benefits due to you under this Letter or otherwise on account of any claim the
Bank may have against you or any remuneration or other benefit earned or received by you after such
termination.

In the event of any inconsistency between this Letter and any provision of any other Bank
Arrangement, the provisions of this Letter will control. No provision of this Letter may be
amended unless agreed to in writing by both you and the Bank. No waiver by any person or entity of
any breach of any condition or provision of this Letter will be deemed a wavier of any similar or
dissimilar condition or provision at the same or any prior or subsequent time. To be effective,
any waiver must set forth in a writing signed by the waiving person or entity and must specifically
refer to the condition(s) or provision(s) of this Letter being waived.

Please note that the terms of this Letter are conditioned on and subject to review and
non-objection of the Finance Agency. We will notify you when we have received confirmation of the
Finance Agency’s non-objection. Further, this offer is contingent upon the successful completion
of the remaining international background/reference verification process.

Please sign and return this original Letter to indicate your acceptance of this offer; a copy of
this Letter is enclosed for your records. We request that the terms of this offer be maintained in
confidence in keeping with the Bank’s policies in the area of compensation until such time as the
Bank discloses the material terms in accordance with SEC requirements.

Please complete the employment application and Section I of the government required I-9 form which
are both enclosed. On your Start Date, you will be required to bring the completed forms

 

 

Mr. Winthrop Watson

August 19, 2009

Page 4

and two original items from the List of Acceptable Documents with you. As previously mentioned,
your Start Date will be confirmed upon your confirmation to us (including providing us with any
documentation that we deem appropriate) that your employment with us is not in breach of any
obligations to your current employer and that any “Garden Leave” requirements have been met or
otherwise released.

Winthrop, I am very excited that you will be joining the Bank and becoming a member of our
management team, and I look forward to working with you on leading our Bank. I am looking forward
to hearing from you soon.

Should you have any questions, please feel free to contact me.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	/s/ John R. Price
 	 
	 	John R. Price 	 
	 	Chief Executive Officer

Federal Home Loan Bank of Pittsburgh 	 
	 
	 	AGREED AND ACKNOWLEDGED:

 	 
	 	/s/ Winthrop Watson
 	 
	 	Winthrop Watson 	 
	 	 	 
	 

Dated: October 5, 2009

 

 

Exhibit A

EXECUTIVE OFFICER

SEVERANCE AGREEMENT

     This Agreement is entered into as of the ___day of                     , 2009, by and between the FEDERAL
HOME LOAN BANK OF PITTSBURGH, a corporation organized under the laws of the United States (the
“Bank”) and                                         (the “Executive”).

     WHEREAS, the Executive is willing to accept employment with the Bank but desires assurance
that, in the event of a “Reorganization” (as defined in Section 1 below) of the Bank, he will
continue to have the responsibility and status he has earned, either with the Bank or with a
successor to the Bank; and

     WHEREAS, to induce the Executive to accept employment with the Bank, in the event the
Executive’s employment with the Bank terminates following a “Reorganization” (as defined in Section
1 below) of the Bank, such Executive shall be eligible to receive severance benefits under the
terms and conditions of this Agreement in lieu of being eligible for benefits under any Bank
severance policy.

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

     1. Definitions.

     “Bank” shall mean the Federal Home Loan Bank of Pittsburgh and any other entity within the
definition of “Bank” in Section 6(a) hereof.

     “Cause” shall mean (i) the continued failure of the Executive to perform his duties with the
Bank (other than any such failure resulting from Disability), after a demand for performance,
pursuant to a resolution of the Bank’s Board of Directors, is delivered to the Executive by the
Chair of the Board of Directors of the Bank, which specifically identifies the manner in which the
Executive has not performed his duties, (ii) the personal dishonesty, incompetence, willful
misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform
stated duties, or willful violation of any law, rule or regulation (other than routine traffic
violations or similar offenses); or (iii) the removal of the Executive by or at the direction of
the Federal Housing Finance Agency pursuant to federal laws, rules and regulations, including 12
U.S.C. §4501 et. seq. as amended or by any successor agency to the Federal Housing
Finance Agency pursuant to a similar statute.

     “Compensated Termination” shall have the meaning set forth in Section 2(a).

 

 

     “Disability” shall mean, as a result of the Executive’s incapacity due to physical or mental
illness, the Executive shall have been absent from performing his duties with the Bank for an
aggregate of six (6) months in a twelve (12) months period, and, within thirty (30) days after a
Notice of Termination is thereafter given by the Bank to the Executive, the Executive shall not
have returned to the full-time performance of the Executive’s duties.

     “Good Reason” shall mean the occurrence of any of the following events during the period
beginning with the execution of a definitive agreement regarding a Reorganization and ending twelve
(12) months after the effective date of such Reorganization:

     (i) (1) a material diminution in the Executive’s base compensation as in effect
immediately prior to the beginning of the period or as the same may be increased
from time to time thereafter, (2) a material diminution in the Executive’s
authority, duties or responsibilities as in effect immediately prior to the
beginning of the period, or (3) a material diminution in the authority, duties or
responsibilities of the officer (as in effect immediately prior to the beginning of
the period) to whom the Executive is required to report,

     (ii) any material breach of this Agreement by the Bank, or

     (iii) any material change in the geographic location at which the Executive
must perform his services for the Bank;

provided, however, that prior to any termination of employment for Good Reason, the Executive must
first provide written notice to the Bank within ninety (90) days of the initial existence of the
condition, describing the existence of such condition, and the Bank shall thereafter have the right
to remedy the condition within thirty (30) days of the date the Bank received the written notice
from the Executive. If the Bank remedies the condition within such thirty (30) day cure period,
then no Good Reason shall be deemed to exist with respect to such condition. If the Bank does not
remedy the condition within such thirty (30) day cure period, then the Executive may deliver a
Notice of Termination for Good Reason at any time within sixty (60) days following the expiration
of such cure period.

     “Notice of Termination” shall mean a written notice which shall indicate those specific
termination provisions in this Agreement upon which the Bank or the Executive, as the case may be,
has relied for such termination and which sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive’s employment under the
provision so indicated.

     “Payment Determination Date” shall have the meaning set forth in Section 2(b).

     “Reorganization” of the Bank shall mean the occurrence at any time of any of the following
events:

     (i) The Bank is merged or consolidated with or reorganized into or with another
bank or other entity, or another bank or other entity is merged or consolidated into
the Bank;

 

 

     (ii) The Bank sells or transfers all, or substantially all of its business
and/or assets to another bank or other entity; or

     (iii) The liquidation or dissolution of the Bank;

provided the term “Reorganization” shall not include any Reorganization pursuant to any federal
statute, rule, regulation or directive (including 12 U.S.C. §4501 et. seq. as
amended).

     “Release Agreement” shall mean the Bank’s standard release of claims agreement executed by the
Bank and the Executive under which the Executive releases the Bank from claims arising during the
Executive’s employment with the Bank.

     “Retirement” shall mean the planned and voluntary termination by the Executive of his
employment on or after reaching the earliest retirement age permitted by the Bank’s qualified
retirement plans.

     2. Compensated Termination.

     (a) Compensated Termination. If the Executive incurs a Compensated Termination
while the Executive is employed by the Bank or within twelve (12) months after the effective
date of a Reorganization of the Bank (whether the Executive is then employed by the Bank or
a successor to the Bank as a result of such Reorganization), the Executive shall be entitled
to the benefits provided in Section 4(a). For purposes of this Agreement, a “Compensated
Termination” means termination of the Executive’s employment under either of the following
circumstances:

     (i) By the Executive for Good Reason; or

     (ii) By the Bank, or by its successor in a Reorganization, without Cause at any
time during the period (1) beginning with the execution of a definitive agreement
regarding a Reorganization and (2) ending twelve (12) months after the effective
date of such Reorganization.

     (b) Payment Determination Date. “Payment Determination Date,” for purposes of
determining when a payment resulting from a Compensated Termination must be made pursuant to
Section 4(a), shall mean the effective date of the termination of the Executive’s employment with
the Bank if such termination is a “Compensated Termination.”

     (c) Non-Compensated Termination. For the avoidance of doubt, none of the following
events shall result in any payment to the Executive for a Compensated Termination under Section
4(a):

     (i) The termination of employment by the Executive without Good Reason;

 

 

     (ii) The termination of the Executive’s employment for Cause by the Bank or its
successor in a Reorganization;

     (iii) The termination of the Executive’s employment Without Cause by the Bank
or its successor in a Reorganization (1) prior to the execution of a definitive
agreement regarding a Reorganization or (2) more than twelve (12) months after the
effective date of such Reorganization;

     (iv) The termination of the Executive’s employment by the Bank or its successor
in a Reorganization for Disability;

     (v) The death of the Executive; or

     (vi) The Retirement of the Executive.

3. Termination of Employment.

     (a) Termination by the Bank. The Bank may terminate the employment of the Executive
as follows:

     (i) For Cause upon the adoption of a resolution by the affirmative vote of not
less than a majority of the entire membership of the Bank’s Board of Directors at a
meeting of the Board (after reasonable notice to the Executive and an opportunity
for the Executive, together with counsel, to be heard by the Board), finding that in
the good faith opinion of the Board the Executive was guilty of conduct set forth in
the definition of “Cause” in Section 1 hereof and specifying the particulars thereof
in detail. A vote of the Board is not required if the Executive is removed by or at
the direction of the Federal Housing Finance Agency pursuant to federal laws, rules
and regulations, including 12 U.S.C. §4501 et. seq. as amended;

     (ii) Without Cause;

     (iii) Upon the Disability of the Executive; and

     (iv) Upon the death of the Executive.

     (b) Termination by Executive. The Executive may terminate his employment with the
Bank as follows:

     (i) For Good Reason;

     (ii) Without Good Reason; or

     (iii) Upon the Executive’s Retirement, in which case the Executive shall be
entitled to all benefits under any retirement plan of the Bank and other plans to
which the Executive is a party.

 

 

     (c) Preservation of Compensated Termination. The provisions of Sections 3(a) and
3(b) are included in this Agreement for clarification of the rights of termination of the
employment relationship between the Bank and the Executive, but such provisions shall not prejudice
the Executive’s right to receive payments or benefits required to be provided to the Executive if
any such termination is a “Compensated Termination.”

     (d) Notice of Termination.

     (i) Any termination by the Bank for Disability or Cause shall be communicated
by a Notice of Termination; provided, however, that the failure by the Bank to give
notice in such circumstances shall not constitute a Compensated Termination.

     (ii) Any termination by the Bank without Cause or by the Executive without Good
Reason shall be communicated to the other party in accordance with the general
notice provisions of this Agreement.

4. Payment for Compensated Termination.

     (a) In the event of a Compensated Termination, the Bank shall pay or provide the Executive the
following:

     (i) an amount equal to 2.00 times the annualized base salary of the Executive
in the calendar year of separation from the Bank; plus

     (ii) an amount equal to 2.00 times the payout award the Executive could have
received at target in the calendar year of separation from the Bank under the
variable incentive compensation plan; plus

     (iii) twelve months of individualized executive outplacement services
commencing on the day of the Executive’s separation from the Bank.

The amounts provided under Sections 4(a)(i) and 4(a)(ii) above shall be distributed
to the Executive in a lump sum, with the lump sum payment being made within
forty-five (45) days of the Payment Determination Date. The Bank shall directly pay
the cost of the outplacement benefit provided for in 4(a)(iii) above; provided,
that, the Executive must submit to the Bank a valid claim substantiating the expense
within 45 days of incurring the expense. Each reimbursement will be paid within 30
days following the Bank’s receipt of a valid claim substantiating the expense, and
in any event shall be paid no later than March 15th of the year
immediately following the year in which the expenses were incurred.

     (b) Notwithstanding Section 4(a), if the Bank is not in compliance with any applicable
regulatory capital or regulatory leverage requirement or if the payment would cause

 

 

the Bank to fall below applicable regulatory requirements, then such payment shall be deferred
until such time as the Bank or any successor achieves compliance with its regulatory requirement.

     (c) After a Compensated Termination, the Executive shall continue to be covered by the Bank’s
applicable medical insurance plan consistent with the Executive’s elections then in effect
immediately prior to the Compensated Termination for a period of eighteen (18) months, subject to
the Executive’s payment of the portion of the premiums for such medical insurance equivalent to the
portion of such premiums paid by the Bank’s then active employees; provided that any insurance
premiums payable by the Bank or any successor pursuant to this Section 4 shall be payable at such
times and in such amounts as if the Executive was still an employee of the Bank, subject to any
increases in such amounts imposed by the insurance company or COBRA, and the amount of insurance
premiums required to be paid by the Bank in any other taxable year.

     (d) The Executive shall be responsible for the payment of all federal, state and local income
taxes which may be due with respect to any payments made to the Executive pursuant to this
Agreement.

     (e) The Executive shall be required to execute the Bank’s standard Release Agreement as a
condition precedent to receiving the payments stated herein.

5. No Obligation to Seek Further Employment; No Effect on Other Contractual Rights.

     (a) The Executive shall not be required to seek other employment, nor shall any payment made
under this Agreement be reduced by any compensation received from other employment.

     (b) The provisions of this Agreement, and any payment provided for hereunder, shall not reduce
any amounts otherwise payable, or in any way diminish the Executive’s existing rights, or rights
which would accrue solely as a result of the passage of time, under any plan.

6. Successor to the Bank.

     (a) This Agreement is binding upon the successors and assigns of the Bank. The Bank and its
successors and assigns will require any successor or assign (whether direct or indirect, in a
Reorganization, by operation of law, or otherwise) to all or substantially all of the business
and/or assets of the Bank, to enter into a written agreement in form and substance satisfactory to
the Executive, expressly, absolutely and unconditionally to assume and agree to perform this
Agreement in the same manner and to the same extent that the Bank would be required to perform it
if no such succession or assignment had taken place. In the event of a Compensated Termination, the
Bank agrees that it shall pay or shall cause such employer to pay any amounts owed to the Executive
pursuant to Section 4 hereof.

     As used in this Agreement, “Bank” shall mean the Bank as hereinbefore defined and any successor or
assign to its business and/or assets as aforesaid which executes and delivers the

 

 

agreement provided for in this Section 6 or which otherwise becomes bound by all the terms and
provisions of this Agreement by operation of law. If at any time during the term of this Agreement
the Executive is employed by any corporation a majority of the voting securities of which is then
owned by the Bank, the term “Bank” shall include such employer. Whether or not another entity
becomes the successor or assign of the Bank under this Agreement, the maximum amount which the
Executive may receive from all sources under this Agreement in a Compensated Termination shall be
the amounts set forth in Section 4 hereof.

     (b) This Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal and legal representatives, executors, administrators, successors, heirs, distributees, and
legatees. If the Executive should die while any amounts are still payable to him hereunder, all
such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the beneficiary designated by notice in writing executed by the Executive and filed
with the Bank, or failing such designation, to the Executive’s estate.

7. Late Payment of Benefits. Any payment made later than the time provided for in Section
4(a) of this Agreement for whatever reason, including, without limitation, the reasons set forth in
Section 4(b), shall include interest at the Fed funds rate which shall begin to accrue on the tenth
(10th) day following the Executive’s Payment Determination Date.

8. Employment Rights. This Agreement shall not confer upon the Executive any right to
continue in the employ of the Bank and shall not in any way affect the right of the Bank to dismiss
or otherwise terminate the Executive’s employment at any time and for any reason with or without
cause. This Agreement is not intended (i) to be an employment agreement or (ii) to define all
aspects of the employment relationship between the Bank and the Executive, including but not
limited to applicable employment or benefit policies of the Bank. To the extent there is any
conflict between the terms hereof and the terms of any employment or benefit policies of the Bank,
the terms of this Agreement shall control. Any payments or benefits to which the Executive may be
entitled under Section 4 hereof will not constitute wages for work performed by the Executive.

9. Tax Withholding. The Bank will withhold from any amounts payable to the Executive under
this Agreement to satisfy all applicable federal, state, local or other withholding taxes. All
amounts payable under Section 4(a) are considered “wages” to be reported on Form W-2. The normal
withholding rules for wages apply. The Bank will also withhold any excise taxes owed under Code
Section 4999.

10. Notice. For purposes of this Agreement, notices and all other communications provided
for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered
by hand, delivered by a nationally-recognized overnight courier service, or mailed by United States
registered mail, return receipt requested, postage prepaid, as follows:

 

 

     If to the Bank:

Federal Home Loan Bank of Pittsburgh

601 Grant Street

Pittsburgh, PA 15219

Attention: Chair of the Board of Directors

With a copy to the President

     If to the Executive:

                                        

601 Grant Street

Pittsburgh, PA 15219

or such other address as either party may have furnished to the other in writing in
accordance herewith. Any notice shall be effective upon receipt.

11. Legal Fees and Expenses. The Bank shall pay all reasonable legal fees and expenses
which the Executive may incur as a result of the Bank’s contesting in bad faith the validity or
enforceability of this Agreement or the calculation of amounts payable hereunder with the fees and
expenses to be paid promptly by the Bank and in any event no later than March 15th of
the year immediately following the year in which such fees and expenses were incurred.

12. Term. This Agreement shall remain in effect until terminated by the Board of Directors
of the Bank by formal resolution of the Board; provided, however, that any such termination shall
not be effective until three years after the date of such formal Board action; and provided
further, that if a definitive agreement of Reorganization is executed by the Bank during such three
year period, then any such termination shall not become effective until 12 months after the
effective date of the Reorganization (or such longer period until all payments and benefits, if
any, under this Agreement have been paid or satisfied).

13. Arbitration.

     (a) Disputes regarding this Agreement are subject to arbitration and shall be settled by
binding arbitration administered by the American Arbitration Association (“AAA”) in accordance with
its “Employment Arbitration Rules and Mediation Procedures” and successor rules as may be in effect
from time to time (referred to herein as the “Rules”) for individual employment agreements. The
arbitration shall be heard and determined by a panel of three (3) arbitrators, with one selected by
the Bank, one selected by the Executive and one selected by the AAA, and each such arbitrator shall
be an attorney having experience and familiarity with employment disputes. The arbitration
proceeding shall occur in the Pittsburgh, Pennsylvania metropolitan area. The costs of arbitration
for each party and the arbitrators’ fees shall be allocated in accordance with the above-referenced
AAA Rules. The arbitration and all related proceedings and discovery shall take place pursuant to a
protective order entered by the

 

 

arbitrators that adequately protects the confidential nature of the parties’ confidential
information. In no event shall any arbitration award provide a remedy beyond those permitted under
this Agreement, and any award providing a remedy beyond those permitted under this Agreement shall
not be confirmed, no presumption of validity shall attach, and such award shall be vacated.

     (b) If within thirty (30) days after any Notice of Termination is given, the party receiving
such Notice of Termination notifies the other party that a dispute exists concerning the
Termination, the parties shall promptly proceed to arbitration as provided in (a) above.
Notwithstanding the pendency of any such dispute, the Bank shall continue to pay the Executive his
base salary and provide such other compensation and benefits, all as in effect immediately prior to
the Notice of Termination. If it is determined that the Executive is not entitled to any
compensation under Section 4 of this Agreement, the Executive shall return all cash amounts to the
Bank promptly following the date of resolution by arbitration, with interest thereon commencing as
of the date of the resolution of the dispute by arbitration at the prime rate of interest as
published by the Wall Street Journal from time to time. Any cash amounts paid to the Executive
pending the resolution of the dispute by arbitration shall offset any amounts determined to be due
to the Executive under Section 4.

14. Miscellaneous.

     (a) No Modification. No provisions of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing signed by the
party or parties hereto to be bound.

     (b) No Waiver. No waiver by either party hereto at any time of any breach by the
other party hereto of, or compliance with, any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.

     (c) Entire Agreement. No agreements or representations, oral or otherwise, express or
implied, with respect to the subject matter hereof have been made by either party which are not set
forth expressly in this Agreement.

     (d) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the Commonwealth of Pennsylvania (excluding conflicts of laws principles), except
to the extent such law is preempted by the laws of the United States.

     (e) Pleadings. Section or paragraph headings contained herein are for convenience of
reference only and are not to be considered a part of this Agreement.

     (f) Validity. The invalidity or unenforceability of any provisions of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement, which
shall remain in full force and effect.

 

 

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

     IN WITNESS WHEREOF, this Agreement is executed as of the date first above written and is
effective as of the ___day of                    , 2009.

THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	FEDERAL HOME LOAN BANK OF	 	 
	THE EXECUTIVE:	 	 	 	PITTSBURGH:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Chair, Board of Directors	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Chair, Human Resources Committee	 	 
	 

	 	 	 	 	 	of the Board of Directors	 	 

 

 

Exhibit B

Indemnification Agreement

This Indemnification Agreement (“Agreement”) is made and entered into as of this                      day of
                    , 2009 by and between                                         (“Officer”) and the Federal Home Loan Bank of
Pittsburgh (“Bank”).

WHEREAS, the Board of Directors of the Bank (the “Board”) has determined that it is reasonable,
prudent, and necessary for the Bank contractually to obligate itself to indemnify the Officer in
order to induce the Officer to serve or continue to serve the Bank as an officer as well as to
induce the Officer to serve or continue to serve to the extent applicable, as an officer, director,
trustee, employee, member or agent of another corporation, partnership, joint venture, trust,
council, advisory committee or other enterprise (including employee benefit plans) or other
official of organizations with which the Bank may have a contractual or other relationship, free
from undue concern that he will not be so indemnified; and

WHEREAS, Article VII of the Bank’s Bylaws contractually obligates the Bank to indemnify current and
former officers and directors of the Bank in connection with their service for the Bank and
service, as applicable, as an officer, director, trustee, member or agent of another corporation,
partnership, joint venture, trust, council, advisory committee or other enterprise (including
employee benefit plans) on behalf of or for the benefit of the Bank; and

WHEREAS, the Officer is willing to serve, to continue to serve, and take on additional service for,
or on behalf of, the Bank on the condition that he be so indemnified as set forth herein.

NOW, THEREFORE, in consideration of the promises and the covenants in this Agreement, and intending
to be legally bound, the Bank and the Officer do hereby covenant and agree as follows:

	1.	 	Recitals. The recitals set forth above are acknowledged by the parties to this
Agreement to be true and correct and are incorporated in this Agreement by this reference.
	 
	2.	 	Contractual Indemnification Obligations. The parties expressly agree that the Bank’s
indemnification obligations to Officer as set forth in the Bank’s Bylaws are contractual and
that such obligations may not be terminated or amended without the prior written consent of
the Bank and the Officer.

IN WITNESS WHEREOF, and intending to be legally bound hereby the parties have executed this
Agreement as of the date first above written.

	 	 	 	 	 
	

	

Federal Home Loan Bank of Pittsburgh

 	 
	 	By:  	 	 
	 	 	Dana A. Yealy 	 
	 	 	Managing Director, General Counsel

& Corporate Secretaryexv4w8

Exhibit 4.8

 

Deed of Release

Sims Metal Management Limited

Jeremy Sutcliffe

 

Level 12

60 Carrington Street

SYDNEY NSW 2000

DX 262 SYDNEY NSW

Tel: (02) 8915 1000

Fax: (02) 8916 2000

www.addisonslawyers.com.au

Ref: JLM:SIM001/4001

363323_1.DOC

 

 

Table of Contents

	 	 	 	 	 	 	 
	1.
	 	Defined terms and interpretation	 	 	3	 
	2.
	 	Termination of Employment	 	 	6	 
	3.
	 	Termination Entitlements	 	 	6	 
	4.
	 	Release	 	 	6	 
	5.
	 	Return of Property	 	 	7	 
	6.
	 	Confidentiality and Continuing Obligations	 	 	7	 
	7.
	 	Resignation from offices and Indemnity	 	 	7	 
	8.
	 	Restraint	 	 	8	 
	9.
	 	Confidentiality of Deed	 	 	8	 
	10.
	 	Public Statements	 	 	9	 
	11.
	 	Acknowledgements	 	 	9	 
	12.
	 	Benefit of Deed	 	 	9	 
	13.
	 	Bar	 	 	9	 
	14.
	 	Notices	 	 	9	 
	15.
	 	General	 	 	10	 
	Schedule 1 — Termination Entitlements	 	 	13	 
	Schedule 2 — Announcement	 	 	16	 

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DETAILS

Date:

Parties

	(1)	 	Sims Metal Management Limited (“Sims”)

	 	 	 
	ABN

	 	69 114 838 630
	 
	 	 
	Address

	 	Sir Joseph Banks Corporate Park
	 

	 	Suite 3, Level 2
	 

	 	32 — 34 Lord Street
	 

	 	BOTANY NSW 2019
	 
	 	 
	Fax

	 	(02) 9902 6006
	 
	 	 
	Attention

	 	Company Secretary

	(2)	 	Jeremy Sutcliffe (“Executive”)

	 	 	 
	Address

	 	26 Prince Albert Street
	 

	 	MOSMAN NSW 2088

Recitals

	A.	 	The Executive commenced his employment with the Sims Group in or about 1989.
	 
	B.	 	The Executive was employed pursuant to the First Contract from 1 March 2002.
	 
	C.	 	The Executive was employed pursuant to the Second Contract from in or about October 2005.
	 
	D.	 	The parties have agreed that the Employment came to an end with effect from 31 July 2009 as a
result of Sims determining that it no longer required the functions, duties and
responsibilities then performed by the Executive to be performed by anyone.
	 
	E.	 	The Executive made claims against Sims arising out of the Termination, including claims that
Sims had breached the Second Contract.
	 
	F.	 	Sims rejected the claims made by the Executive.
	 
	G.	 	Sims and the Executive have agreed to:

	 	(a)	 	the termination of the Employment on the Termination Date;

2

 

	 	(b)	 	the Termination Entitlements to be paid or provided by Sims to the Executive as
set out in Schedule 1;
	 
	 	(c)	 	a release of all Claims that the Executive may have against Sims; and
	 
	 	(d)	 	a restraint on competition with Sims,

	 	 	on the terms set out in this deed.

Operative Parts

	1.	 	Defined terms and interpretation
	 
	1.1	 	Defined terms
	 
	 	 	The following definitions apply unless the context requires otherwise.
	 
	 	 	Business Day means:

	 	(a)	 	for the purpose of sending or receiving a notice, a day which is not a
Saturday, Sunday, a bank holiday or a public holiday in the city where the notice is
received; and
	 
	 	(b)	 	for all other purposes, a day which is not a Saturday, Sunday, a bank holiday
or a public holiday in Sydney.

	 	 	Business Hours means from 9.00am to 5.00pm on a Business Day.
	 
	 	 	Claim means any right, entitlement, charge, action, suit, proceeding, verdict, judgment,
damage, loss, penalty, fine, interest, cost, expense, liability, claim, demand or cause of
action (whether based in contract, tort, statute or equity) and whether or not prospective
or contingent, present or future, fixed or unascertained, actual or contingent, known or
unknown.
	 
	 	 	Confidential Information has the meaning given it in the First Contract.
	 
	 	 	Corporations Act means the Corporations Act 2001 (Cth).
	 
	 	 	Details means, in relation to a party, the details for that party set out in this deed.
	 
	 	 	Employment means the Executive’s employment with Sims pursuant to the Second Contract.
	 
	 	 	First Contract means the contract of employment dated 28 February 2002 between the Executive
and Simsmetal Limited (ACN 008 634 526) (now Sims Group Australia Holdings Limited (ACN 008
634 526)).
	 
	 	 	Notice has the meaning given in clause 14.1.
	 
	 	 	Related Body Corporate has the meaning given to it in the Corporations Act.

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	 	 	Restraint Area means any country in the world where any member of the Sims Group conducts
any business (whether now or in the future).
	 
	 	 	Restraint Period means the period commencing from the Termination Date and concluding on 31
October 2009.
	 
	 	 	Second Contract means the contract of employment dated 5 September 2005 between the
Executive and Sims, incorporating certain provisions from the First Contract, and as varied
by the letter from Sims to the Executive dated 24 September 2007.
	 
	 	 	Sims Group means

	 	(a)	 	Sims;
	 
	 	(b)	 	any Related Body Corporate of Sims;
	 
	 	(c)	 	any entity that controls, is controlled by or is under common control with,
Sims; and
	 
	 	(d)	 	any other entity that is connected with Sims or any other member of the Sims
Group by a common interest in an economic enterprise including, without limitation, a
partner or another member of a joint venture.

	 	 	Termination means the termination of the Employment with effect from the Termination Date.
	 
	 	 	Termination Date means 31 July 2009.
	 
	 	 	Termination Entitlements means the payments and entitlements set out in Schedule 1 to be
paid or provided to the Executive or as the Executive otherwise directs in writing.
	 
	1.2	 	Interpretation
	 
	 	 	In this deed, except where the context otherwise requires:

	 	(a)	 	the singular includes the plural and vice versa and a gender includes other
genders;
	 
	 	(b)	 	other grammatical forms of a defined word or expression have a corresponding
meaning;
	 
	 	(c)	 	a reference to a clause, paragraph, schedule or annexure is to a clause or
paragraph of or schedule or annexure to this deed and a reference to this deed includes
any schedule and annexure;
	 
	 	(d)	 	a reference to a document or agreement, includes the document or agreement as
novated, altered, supplemented or replaced from time to time;
	 
	 	(e)	 	a reference to A$, $A, dollar or $ is to Australian currency;

4

 

	 	(f)	 	a reference to time is to Sydney time;
	 
	 	(g)	 	a reference to a year (other than a financial year) or a month means a calendar
year or calendar month respectively;
	 
	 	(h)	 	a reference to a party is to a party to this deed, and a reference to a party
to a document includes the party’s executors, administrators, successors and permitted
assigns and substitutes;
	 
	 	(i)	 	a reference to a person includes a natural person, partnership, firm, body
corporate, trust, joint venture, association, governmental or local authority or agency
or other entity;
	 
	 	(j)	 	a reference to a statute, ordinance, code or other law includes regulations and
other instruments under it and consolidations, amendments, re-enactments or
replacements of any of them;
	 
	 	(k)	 	any authorities, associations, bodies and entities whether statutory or
otherwise will, in the event of such authority, association, body or entity ceasing to
exist or being reconstituted, replaced or the powers or functions thereof being
transferred to or taken over by any other authority, association, body or entity, be
deemed to refer respectively to the authority, association, body or entity established,
constituted or substituted in lieu thereof which exercises substantially the same
powers or functions;
	 
	 	(l)	 	the meaning of general words is not limited by specific examples introduced by
including, for example or similar expressions;
	 
	 	(m)	 	any agreement, representation, warranty or indemnity by two or more parties
(including where two or more persons are included in the same defined term) binds them
jointly and severally;
	 
	 	(n)	 	any agreement, representation, warranty or indemnity in favour of two or more
parties (including where two or more persons are included in the same defined term) is
for the benefit of them jointly and severally;
	 
	 	(o)	 	a rule of construction does not apply to the disadvantage of a party because
the party was responsible for the preparation of this deed or any part of it; and
	 
	 	(p)	 	if a day on or by which an obligation must be performed or an event must occur
is not a Business Day, the obligation must be performed or the event must occur on or
by the next Business Day.

	1.3	 	Headings
	 
	 	 	Headings are for ease of reference only and do not affect interpretation.

5

 

	2.	 	Termination of Employment
	 
	2.1	 	Termination Date
	 
	 	 	The Employment terminated on the Termination Date.
	 
	2.2	 	Redundancy
	 
	 	 	The parties acknowledge that the
Employment terminated by reason
of the redundancy of the
Executive’s position on the
Termination Date.
	 
	2.3	 	Survival
	 
	 	 	Subject to the terms of this deed, the obligations of the Executive under the following
provisions of the First Contract will continue to apply after the Termination:

	 	(a)	 	clause 13 (Confidential Information); and
	 
	 	(b)	 	clause 14 (assignment of intellectual property rights).

	3.	 	Termination Entitlements

	 	(a)	 	Sims agrees to pay or provide the Termination Entitlements on the date of this
deed, or as otherwise agreed between the parties, to the Executive as required under
the terms of this deed. Sims may withhold such amounts from the Termination
Entitlements as required by any taxation or superannuation laws.
	 
	 	(b)	 	The Termination Entitlements will be treated as having satisfied the conditions
for “genuine redundancy” for Australian taxation purposes.
	 
	 	(c)	 	The Executive agrees that:

	 	(i)	 	the Termination Entitlements include the full amounts, benefits
and entitlements that the Sims Group owes the Executive, whether for salary,
wages, allowances, bonuses, incentives under any discretionary scheme, short
term incentives, long term incentives, equity based incentives, or other
remuneration, leave entitlements, payment in lieu of notice, severance pay, or
anything else connected with the Employment and the termination of the
Employment; and
	 
	 	(ii)	 	the Executive will not be entitled to any other amount or
benefit whatsoever in respect of the Employment or the termination of the
Employment except as expressly set out in this deed.

	4.	 	Release
	 
	4.1	 	Satisfaction of rights
	 
	 	 	The Executive agrees that this deed fully satisfies the rights that the Executive, and
anyone who claims through the Executive, has or may have against the Sims Group or

6

 

	 	 	any of its officers, employees, agents and professional advisers arising directly or
indirectly out of the matters recited, including the Employment and the Termination.

	4.2	 	Executive Release
	 
	 	 	The Executive hereby releases and forever discharges each member of the Sims Group and each
of its officers, employees, agents and professional advisers from all Claims arising
directly or indirectly out of the matters recited, including the Employment and the
Termination.
	 
	5.	 	Return of Property
	 
	 	 	On or before the date of this deed, and subject to the terms of this deed, the Executive
must return to Sims:

	 	(a)	 	all property belonging to the Sims Group or its customers or clients
(including, without limitation, cards, keys, motor vehicles, equipment and materials)
that the Executive has, or can reasonably obtain; and
	 
	 	(b)	 	all material (in whatever form, including electronic form) that the Executive
has, or can reasonably obtain, that contains Confidential Information relating to the
business of the Sims Group or its organisation or affairs.

	6.	 	Confidentiality and Continuing Obligations
	 
	 	 	The Executive remains under an ongoing duty not to use or disclose any Confidential
Information belonging or relating to the Sims Group. The Executive continues to be bound,
and agrees to abide, by the Executive’s obligations set out in clause 13 and clause 14 of
the First Contract which continue after the Termination.
	 
	7.	 	Resignation from offices and Indemnity
	 
	7.1	 	Resignation
	 
	 	 	By the date of this deed, or such other date specified in writing by Sims, the Executive
must resign from all directorships, offices and positions that the Executive holds in the
Sims Group or in any external organisation in connection with the Employment.
	 
	7.2	 	Authority
	 
	 	 	If the Executive does not immediately resign from all such directorships, offices and
positions in accordance with this clause, the Executive authorises Sims (or any persons
authorised by Sims) to do all things and execute all documents necessary on behalf of the
Executive to give effect to these resignations.
	 
	7.3	 	Indemnity
	 
	 	 	Notwithstanding the Termination, the Deed of Access, Indemnity and Insurance dated 8 June
2006 between the Executive and Sims will continue to apply in accordance with its terms.

7

 

	8.	 	Restraint
	 
	8.1	 	Restrained Activities
	 
	 	 	In consideration for the payments referred to in the Schedule 1 the Executive agrees that,
during the Restraint Period, the Executive must not anywhere in the Restraint Area:

	 	(a)	 	engage or prepare to engage in any business activity which:

	 	(i)	 	is the same or similar to that part or parts of the business
carried on by any member of the Sims Group; or
	 
	 	(ii)	 	is in competition with the business carried on by any member of
the Sims Group;

	 	(b)	 	solicit, canvass, approach or accept any approach from any person who was, at
any time during the Executive’s last 12 months of employment with Sims, a customer of
Sims, with a view to obtaining the custom of that person in a business that is the same
or similar to the business conducted by Sims or is in competition with the business
conducted by Sims;
	 
	 	(c)	 	interfere with the relationship between Sims and its customers, employees or
suppliers; or
	 
	 	(d)	 	induce or assist in the inducement of any employee of any member of the Sims
Group to leave their employment.

	8.2	 	Meaning of “engage in”
	 
	 	 	The term “engage in” in clause 8.1 means to participate, assist or otherwise be directly or
indirectly involved as a member, person with a substantial holding (as defined in the
Corporations Act), director, consultant, adviser, contractor, principal, agent, manager,
employee, beneficiary, partner, associate, trustee or financier.
	 
	8.3	 	Restraint is reasonable
	 
	 	 	The Executive agrees that the restraint in clause 8.1 is in the circumstances reasonable and
necessary to protect the legitimate interests of Sims.
	 
	9.	 	Confidentiality of Deed
	 
	9.1	 	No disclosure
	 
	 	 	Each party must not disclose the terms or content of this deed or any discussions and
correspondence relating to the negotiation of this deed, unless the other party first agrees
in writing.

8

 

	9.2	 	Exceptions
	 
	 	 	Clause 9.1 does not prevent a party from disclosing information to the party’s lawyer or
accountant, where the law requires that the information must be disclosed or to enforce this
deed.
	 
	10.	 	Public Statements
	 
	10.1	 	The parties agree that Sims will issue an announcement regarding the Employment and the
Termination in the terms set out in Schedule 2.
	 
	10.2	 	Prior to making any further public statement regarding the Employment, the Termination, or
the Termination Entitlements,(not including in any annual or remuneration report), Sims must
first consult with the Executive about the reasons for and proposed terms of the public
announcement and give the Executive a reasonable opportunity to discuss with Sims any
suggested amendments to the proposed public announcement.
	 
	11.	 	Acknowledgements
	 
	 	 	Bothe parties acknowledge and agree that:

	 	(a)	 	they have obtained legal advice about this deed; and
	 
	 	(b)	 	the terms of this deed are fair and reasonable.

	12.	 	Benefit of Deed
	 
	 	 	Sims has the benefit of this deed for itself and also in trust for each member of the Sims
Group and each of its officers, employees, agents and professional advisers any of whom may
independently enforce it against the Executive.
	 
	13.	 	Bar
	 
	 	 	Each member of the Sims Group and each of its officers, employees, agents and professional
advisers may use this deed, including as a bar, against the Executive in any court or other
proceedings brought by the Executive or anyone who claims through the Executive.
	 
	 	 	The Executive may use this deed, including as a bar, against Sims in any court or other
proceedings bought by Sims or anyone who claims through Sims.
	 
	14.	 	Notices
	 
	14.1	 	Service of notices
	 
	 	 	A notice, demand, consent, approval or communication under this deed (Notice):

	 	(a)	 	must be in writing and in English directed to the recipient’s address for
notices specified in the Details (as varied by any Notice);

9

 

	 	(b)	 	must be hand delivered, left at or sent by prepaid post or facsimile to the
recipient’s address for notices specified in the Details (as varied by any Notice); and
	 
	 	(c)	 	may be given by an agent of the sender.

	14.2	 	Effective on receipt
	 
	 	 	A Notice given in accordance with clause 14.1 takes effect when received (or at a later time
specified in it), and is taken to be received:

	 	(a)	 	if hand delivered or left at the recipient’s address, on delivery;
	 
	 	(b)	 	if sent by prepaid post, the third Business Day after the date of posting, or
the seventh Business Day after the date of posting if posted to or from outside
Australia); and
	 
	 	(c)	 	if sent by facsimile, when the sender’s facsimile system generates a message
confirming successful transmission of the entire Notice unless, within one Business Day
after the transmission, the recipient informs the sender that it has not received the
entire Notice,

	 	 	but if the delivery or transmission under paragraph (a) or (c) is outside Business Hours,
the Notice is taken to be received at the commencement of Business Hours after that
delivery, receipt or transmission.
	 
	14.3	 	Process service
	 
	 	 	Any process or other document relating to litigation, administrative or arbitral proceedings
in relation to this deed may be served by any method contemplated by this clause in addition
to any means authorised by law.
	 
	15.	 	General
	 
	15.1	 	Alterations
	 
	 	 	This deed may be altered only in writing signed by each party.
	 
	15.2	 	Approvals and consents
	 
	 	 	Except where this deed expressly states otherwise, a party may, in its discretion, give
conditionally or unconditionally or withhold any approval or consent under this deed.
	 
	15.3	 	Assignment
	 
	 	 	A party may only assign this deed or a right under this deed with the prior written consent
of each other party.

10

 

	15.4	 	Counterparts
	 
	 	 	This deed may be executed in counterparts. All executed counterparts constitute one
document. This deed may be executed by either of the parties by duly executing a
counterpart and forwarding a copy of the signed counterpart to the other party.
	 
	15.5	 	Costs
	 
	 	 	Sims shall bear its own costs in relation to, and associated with, this deed and giving
effect to the deed. Any stamp duty assessed on this deed will be paid by Sims.
	 
	 	 	Sims shall bear the Executive’s costs in relation to and associated with the Employment, the
Termination, this deed and giving effect to this deed, to a maximum amount of A$12,000
(excluding GST). Sims’ obligations under this clause are in addition to Sims’ previous
agreements to pay invoices rendered by Clayton Utz to the Executive dated 31 March 2009 and
30 June 2009.
	 
	15.6	 	No merger
	 
	 	 	Except where this deed expressly states otherwise, the rights and obligations of the parties
under this deed do not merge on completion of any transaction contemplated by this deed.
	 
	15.7	 	Entire agreement
	 
	 	 	This deed constitutes the entire agreement between the parties in connection with its
subject matter and supersedes all previous agreements or understandings between the parties
in connection with its subject matter.
	 
	15.8	 	Further action
	 
	 	 	Each party must do, at its own expense, everything reasonably necessary to give full effect
to this deed and the transactions contemplated by it (including executing documents) and to
use all reasonable endeavours to cause relevant third parties to do likewise.
	 
	15.9	 	Severability
	 
	 	 	If the whole or any part of a provision of this deed is invalid or unenforceable in a
jurisdiction it must, if possible, be read down for the purposes of that jurisdiction so as
to be valid and enforceable. If however, the whole or any part of a provision of this deed
is not capable of being read down, it is severed to the extent of the invalidity or
unenforceability without affecting the remaining provisions of this deed or affecting the
validity or enforceability of that provision in any other jurisdiction.
	 
	15.10	 	Enforcement of indemnities
	 
	 	 	It is not necessary for a party to incur expense or make payment before enforcing a right of
indemnity conferred by this deed.

11

 

	15.11	 	Survival
	 
	 	 	Any indemnity or obligation of confidentiality in this deed is independent and survives
termination of this deed. Any other term which by its nature is intended to survive
termination of this deed survives termination of this deed.
	 
	15.12	 	Attorneys
	 
	 	 	Each person who executed this deed on behalf of a party declares that he or she has no
notice of the revocation or suspension by the grantor or in any other manner of the power of
attorney under the authority of which he or she executes this deed.
	 
	15.13	 	Waiver
	 
	 	 	A party does not waive a right, power or remedy if it fails to exercise or delays in
exercising the right, power or remedy. A single or partial exercise by a party of a right,
power or remedy does not prevent another or further exercise of that or another right, power
or remedy. A waiver of a right, power or remedy must be in writing and signed by the party
giving the waiver.
	 
	15.14	 	Relationship
	 
	 	 	Except where this deed expressly states otherwise, this deed does not create a relationship
of employment, trust, agency or partnership between the parties.
	 
	15.15	 	Remedies cumulative
	 
	 	 	The rights provided in this deed are cumulative with and not exclusive of the rights, powers
or remedies provided by law independently of this deed.
	 
	15.16	 	Governing law
	 
	 	 	This deed will be governed by and construed in accordance with the law for the time being in
force in New South Wales and the parties, by entering into this deed, are deemed to have
submitted to the non-exclusive jurisdiction of the courts of that State.
	 
	15.17	 	Exercise of rights
	 
	 	 	A party may exercise a right, at its discretion and separately or concurrently with another
right.

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Schedule 1 — Termination Entitlements

	 	 	 
	Entitlement	 	Amount
	Entitlement to
remuneration
package up to 31
July 2009 including
accruing of annual
leave and long
service leave to
that date

	 	Pro-rata entitlement to A$1,551,000 pa (constant
through to 31 July 2009). Any outstanding amounts will
be paid on the date of this deed or as otherwise
agreed.
	 
	 	 
	Salary agreed to be
paid for the period
1 August 2009 — 31
October 2009

	 	A$336,821. This amount will be paid on the date of this
deed or as otherwise agreed.
	 
	 	 
	STI for fiscal 2009

	 	75% of Package — guaranteed ‘bridge’ proposal =
A$1,163,000. This amount will be paid on the date of
this deed or as otherwise agreed.
	 
	 	 
	Redundancy payment
in lieu of notice
for 12 months

	 	A$1,551,200. This amount will be paid on the date of
this deed or as otherwise agreed.
	 
	 	 
	Accrued holiday pay
and long service
leave

	 	Annual leave entitlement at 31 October 2009 is A$575,000

Long service leave entitlement at 31 October 2009 is
A$459,000
	 
	 	 
	 

	 	These amounts will be paid on the date of this deed or
as otherwise agreed.
	 
	 	 
	STI for fiscal 2010

	 	Pro rata basis (ie up to and including 31 October 2009)
on 75% of Package (A$1.551m equal to A$387,000),
payable on the date of this deed or as otherwise
agreed.
	 
	 	 
	Tranche E of the
Retention Incentive
dated 31 October
2005

	 	A$700,000. This amount will be paid on the date of
this deed or as otherwise agreed.
	 
	 	 
	Tranche 2 of the
F2008 LTI Plan

	 	Sims will pay the Executive A$1,273,000 in full
satisfaction of the Executive’s expected entitlement to
performance rights under Tranche 2 of the F2008 LTI
Plan as outlined in the invitation letter of 25
September 2007. This amount will be paid on the date
of this deed or as otherwise agreed.
	 
	 	 
	Tranche 3 of the
F2008 LTI Plan

	 	Termination will qualify as a ‘Qualifying Cessation’
and the Executive’s unvested performance rights will
not immediately lapse and will be retained and tested
for satisfaction of vesting conditions at the end of
the Performance Period. Sims must make available to
the Executive any material, including any external
advice obtained by Sims, relied upon when testing for
satisfaction of vesting conditions.

13

 

	 	 	 
	 

	 	The Executive’s maximum entitlement as per the
invitation letter of 25 September 2007 subject to the
terms of the F2008 LTI Plan, is:
	 
	 

	 	44,218 performance rights based on TSR hurdle F08-F10,

	 

	 	29,746 performance rights based on EPS hurdle F08-F10, and

	 

	 	29,746 performance rights based on SRS EBITDA F08-F10.

	 
	 

	 	Directors may determine (prior to vesting) to pay the
entitlement in cash if and when vested rather than
issue shares.
	 

	 	No retesting will be allowed.
	 
	 	 
	Options — Tranches
1, 2 and 3 of the
F2009 LTI Plan

	 	The Termination will qualify as a ‘Qualifying
Cessation’ and the Executive’s unvested options will
not immediately lapse and will vest in accordance with
the Vesting Schedule outlined in the invitation letter
of 24 November 2008. Sims agrees that it will not
exercise its discretion to satisfy the Executive’s
vested options by way of cash payment and that any
vested options may be exercised by the Executive up to
5.00pm on the Expiry date in accordance with the
invitation letter of 24 November 2008.

The Executive’s maximum entitlement as per the
invitation letter of 24 November 2008 subject to the
terms of the F2009 LTI Plan, is:
	 
	 

	 	45,145 options ex $13.11 vest 1 Sept 09,

	 

	 	45,145 options ex $13.11 vest 1 Sept 10, and

	 

	 	45,145 options ex $13.11 vest 1 Sept 11.

	 
	 	 
	Performance rights
under the F2009 LTI
Plan

	 	The Termination will qualify as a ‘Qualifying
Cessation’ and the Executive’s unvested performance
rights will not immediately lapse and will be retained
and tested for satisfaction of vesting conditions at
the end of the First Performance Period (as defined in
the invitation letter of 24 November 2008). Sims must
make available to the Executive any material, including
any external advice obtained by Sims, relied upon when
testing for satisfaction of vesting conditions.

The Executive’s maximum entitlement as per the
invitation letter of 24 November 2008 subject to the
terms of the F2009 LTI Plan, is:
	 
	 

	 	44,440 performance rights based on TSR hurdle F09-F11

	 
	 

	 	Directors may determine (prior to vesting) to pay the
entitlement in cash if and when vested rather than
issue shares.
	 
	 

	 	No retesting will be allowed.

14

 

	 	 	 
	Superannuation

	 	Sims must make such contribution to the Sims Defined
Benefit Plan as may be necessary to ensure that the
Executive’s superannuation benefit under that Plan is
equal to the benefit the Executive would have received
if the Executive had remained in Sims’ employ until 31
October 2010 in accordance with the terms of the Second
Contract. This payment, which the parties agree to be
A$467,436, will be made on the date of this deed or as
otherwise agreed.
	 
	 	 
	 

	 	On the date of this deed, Sims will request the trustee
of the Sims Defined Benefit Plan to liaise with the
Executive to ascertain from him how he wishes the
amount due to be paid.
	 
	 	 
	 

	 	Subject to the terms of the indemnity given by the
Executive in favour of Sims, Sims will ensure that Sims
Metal Management Asia Limited remains the trustee of
the Sutcliffe Superannuation Fund (established while
the Executive was employed as the Chief Executive
Officer of Simsmetal UK Holdings Ltd) until 31 October
2010.
	 
	 	 
	Other Benefits

	 	Sims agrees that the Executive may retain New South
Wales motor vehicle registration number “AS 999”.
	 
	 	 
	 

	 	Sims will continue to provide motor vehicle insurance
in respect of the Executive’s motor vehicles (Rego AXS
35B, AS999 and BHG 42A), in accordance with the terms
and conditions pursuant to which such insurance was
provided by Sims immediately prior to the Termination,
until 31 October 2009.
	 
	 	 
	 

	 	Sims agrees that the Executive may purchase, at book
value, the laptop, printer and blackberry used by the
Executive immediately prior to the Termination, subject
to deletion of all Sims’ confidential information from
the hard drive.
	 
	 	 
	 

	 	Sims agrees to continue to provide IT support to the
Executive until 31 October 2009.
Sims agrees that the Executive may retain and use for
personal purposes the Executive’s “@simsmm.com” email
address until 31 October 2009.
	 
	 	 
	 

	 	Sims agrees that in the period 1 November 2009 until 31
October 2010, it will automatically forward personal
emails addressed to the Executive at the Executive’s
“@simsmm.com”, “@sims-group” and “@au.sims-group.com”
email addresses to the Executive at such email address
as the Executive may nominate in writing from time to
time and send an automatic reply to the sender of any
such email advising the sender of the Executive’s
nominated email address.

15

 

Schedule 2 — Announcement

Sims Metal Management announced today that Executive Director, Mr Jeremy Sutcliffe is leaving the
Company and stepping down from the Board.

Mr Sutcliffe is the former CEO of Sims Group Limited, which merged with North American based Metal
Management, Inc in March 2008 to create Sims Metal Management Limited (SimsMM). As contemplated
by the merger, Mr Dan Deinst, the former CEO and President of Metal Management, became the CEO of
SimsMM initially with primary responsibility for North American operations, while Mr Sutcliffe
continued to manage the remainder of SimsMM’s operations for a transitionary period. Due to the
efforts of Messrs Dienst and Sutcliffe, the integration and transition of key operational
responsibilities was completed successfully and ahead of schedule.

In acknowledging Mr Sutcliffe’s contribution during a career which spanned over 20 years, the Board
noted that under his tenure as Group CEO from 2002 to 2008, the Company delivered a Total
Shareholder Return of over 850%, the seventh highest performer of all the companies listed on the
ASX100 over the period, and saw its market capitalisation grow more than twelve fold.

“We owe Jeremy a debt of gratitude for helping to bring together two already significant companies
to form the world’s largest listed metal recycling company and to have achieved this with minimal
reliance on debt,” said SimsMM Chairman Mr Paul Varello.

Mr Sutcliffe’s contract, which was due to run to 31 October 2010, has been terminated and a
mutually agreed settlement on remaining payments and obligations reached.

Mr Sutcliffe is currently a non executive director of CSR Limited.

16

 

	 	 	 	 	 	 
	Executed as a deed
	 	 	 	 
	 
	 	 	 	 
	Executed by Sims Metal Management Limited 
	 	)	 	 
	(ABN 69 114 838 630) in
	 	)	 	 
	accordance with Section 127 of the
	 	)	 	 
	Corporations Act 2001 (Cth)
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Signature of authorised person
	 	 	 	Signature of authorised person
	 
	 	 	 	 
	Director
	 	 	 	Secretary
	 
	 	 	 	 
	Office held
	 	 	 	Office held
	 
	 	 	 	 
	Paul Varello
	 	 	 	Frank Moratti
	 
	 	 	 	 
	Name of authorised person
	 	 	 	Name of authorised person
	(BLOCK LETTERS)
	 	 	 	(BLOCK LETTERS)
	 
	 	 	 	 
	Signed, Sealed and Delivered by Jeremy Sutcliffe 
	 	)	 	 
	in the presence of:
	 	)	 	 
	 
	 	)	 	Jeremy Sutcliffe
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Signature of Witness
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Name of Witness
	 	 	 	 
	(BLOCK LETTERS)
	 	 	 	 

17

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