Document:

exv10w11

 

Exhibit 10.11

	 	 	 
	 

	 	
	 

	 	Level 6 Sims Group House
	 

	 	41 McLaren Street North Sydney NSW 2060 Australia
	 

	 	GPO Box 4155 Sydney NSW 2001
	8 January 2007

	 	Phone 612 9956 9100 Facsimile 612 9954 9680
	 

	 	www.sims-group.com
	 
	 	 
	 

	 	Sims Group Limited ABN 69 114 838 630

Mr Darron McGree

34B Bulls Road

CRONULLA NSW 2230

Dear Darron,

EMPLOYMENT WITH SIMS GROUP

I am pleased to offer you, on behalf of Sims Group Limited (‘Company’) a formal contract with Sims
Group Limited. A reference to the Company may also be to a Related Body Corporate (as defined in
the Corporations Act) of the Company (‘Related Entity’) from time to time. Your contract of
employment will be with Simsmetal Services Pty Limited. This offer letter (“Agreement”) contains
the terms and conditions of your new contract effective the date of this Agreement.

Commencement Date and Leave Provisions

Our records show that you joined the Company on 14 February 1983. This date will be used for the
calculation of all service and leave provisions.

Position

Your position is that of Managing Director Australia & New Zealand, Sims Group Australia Holdings
Limited and you will report to me.

Term

This Agreement is for an initial fixed term of two years commencing 1 October 2006 (“Term”). At
the completion of the Term your employment will automatically continue on the terms and conditions
of this Agreement unless and until a termination event occurs. Termination is set out in a
separate clause in this Agreement.

Location

You will be located at the Sims Group Australia Holdings Limited Botany office.

Interstate and international travel will be required from time to time to fulfil your
responsibilities.

METAL
RECYCLING | MANUFACTURING | ALUMINIUM | ENERGY | INTERNATIONAL | STEEL | PLASTICS | INDUSTRIAL | RECYCLING SOLUTIONS

 

 

Remuneration

Your total fixed remuneration (“Package”) for the current financial year will be A$550,000 per
annum. The components within this total Package are flexible. Your next salary review will be
effective 1 July 2007.

Bonus Incentive Programmes

You will continue to be eligible for the executive short term incentive programme (“STI Programme”)
and executive long term incentive programme (“LTI Programme”) for F07 as has been previously been
advised by the Company to you.

The Company reserves the right to vary its STI Programme and its LTI Programme at its sole
discretion for subsequent years. An external review is being undertaken and it is envisaged this
will result in changes to both programmes being introduced at the commencement of F08.

Termination

The Company may not terminate, other than for Cause, your employment during the Term.

Other than with the agreement of the Company, you may not terminate the Agreement during the Term.

The Company may terminate your employment at any time by giving not less than 12 months prior
written notice served on or at anytime after the expiry of the Term. The Company may, at its
option, make a payment to you equal to 12 months of your Package applying at the time of
termination in lieu of notice. If termination is by reason of redundancy, you will be entitled to
the greater of 12 months notice (or payment in lieu) or an amount calculated by reference to the
Sims Group Redundancy Policy. If termination is for Cause, the Company is not required to give any
prior notice or payment in lieu thereof.

After the completion of the Term, you will be required to provide 3 months prior written notice to
the Company to terminate the Agreement.

The term ‘Cause’ when used herein means any one of the following:

	(i)	 	Your conviction of an offence involving fraud, dishonesty or an act of moral turpitude; or
	 
	(ii)	 	Failure or refusal by you to materially comply with a term of this Agreement, provided
that, to the extent such refusal or failure is susceptible to cure, it is not cured within
fifteen (15) business days after the delivery of written notice by the Company to you; or
	 
	(iii)	 	Wilful or intentional misconduct or gross negligence by you in the performance of your
duties under this Agreement; or
	 
	(iv)	 	Failure or refusal by you to materially comply with a reasonable specific direction from
me; or
	 
	(v)	 	Your wilful violation of a significant Company policy committed in connection with the
performance of your duties.

Retention Payment

In the case of a take over of the Company, and in recognition of the interests of shareholders,
executives and continuity of business, if you are still in the employ of the Company 6 months
following the completion of a take over, you will be entitled to a retention payment equivalent to
6 months of your current Package (“Retention Payment”). The Company shall not be entitled to
terminate your employment during the 6 month period without payment of the Retention Payment.

2

 

“Take Over” means any transaction (whether by scheme, takeover bid under the Corporations Act or
other arrangement) under which a party acquires more than 50% of the issued share capital of the
Company.

Corporations Act limit on benefits

If section 200B of the Corporations Act applies, then nothing in this Agreement shall allow you to
receive an amount greater than that permitted under section 200G of the Corporations Act.

Code of Conduct

The Company’s Code of Conduct (as amended) (‘Code’) defines the Company’s basic principles of
business conduct and outlines minimum standards of behaviour expected from the Company’s employees.
It is a condition of your employment that you comply at all times with the Code and with the
Company’s other policies and procedures.

Please also note that the use of the Company’s email and internet facilities implies acceptance of
the Company’s Email and Internet Usage Policy.

Confidential Information

You will not either during the continuance of your employment, or at any time thereafter except in
the proper course of your duties hereunder, or as required by law or by the Company, use or
disclose to any person or persons or company any confidential information of, or relating to, the
Company or any of its Related Entities or joint venture entities, or any person or persons or
company with whom you or the Company have come into contact as a result of your employment, or any
trade or business secrets which have come into your possession pursuant to your employment, and
further you will use your best endeavours to prevent the use of disclosure of any such information
by third parties.

Disclosure of Interest

You will not, during the continuance of your employment, either directly or indirectly in any
capacity carry on, advise, provide services or be engaged, concerned or interested in, or
associated with, any business or activity which is competitive with any business carried on by the
Company or any of its Related Entities or joint venture entities at any time during the continuance
of your employment, or be engaged or interested in any public or private work on duties which in
the reasonable opinion of the Company may hinder or otherwise interfere with the performance of
your duties under this Agreement. This paragraph shall not prohibit the holding (whether directly
or through nominees) of shares listed on a recognised stock exchange.

If you are in agreement with the contents of this letter and accept the terms offered, please
acknowledge your agreement by signing the enclosed duplicate of this letter and returning it to me.

Yours sincerely,

/s/ Jeremy Sutcliffe

JEREMY SUTCLIFFE

Group Chief Executive

3

 

I accept the terms and conditions as stated in this Agreement.

	 	 	 	 	 
	 

Name

	 	 
	 	 

Signature
	 
	 	 	 	 
	 

Date
	 	 	 	 

4exv10w12

 

Exhibit 10.12

	 	 	 
	24 September, 2007

	 	
	Robert C. Larry

	 	Level 5 Sims Group House

41 McLaren Street North Sydney NSW 2060 Australia

GPO Box 4155 Sydney NSW 2001

Phone 612 9956 9100 Facsimile 612 9954 9680

www.sims-group.com

Sims Group Limited ABN 69 114 838 630

Dear Rob,

Employment Agreement dated 1 July 2001 (amended 10 August 2005)

We refer
to your employment agreement with Metal Management, Inc (MMI) dated 1 July 2001, and
amended 10 August 2005 (Employment Agreement).

As you
know, on the date of this letter, Sims Group Limited (Sims) intends to enter into an
Agreement and Plan of Merger among Sims, MMI Acquisition Corporation
and MMI (Merger Agreement). Under the terms of the Merger Agreement, if Closing occurs (as defined in that
agreement):

	•	 	MMI will merge with MMI Acquisition Corporation;
	 
	•	 	all common stock in MMI (other than that held by Sims) will convert into a right to receive
American Depository Shares each representing a Sims Ordinary Share at the agreed exchange ratio
set out in the Merger Agreement; and
	 
	•	 	MMI will become a wholly owned subsidiary of Sims.

The
purpose of this letter is set out the changes to your Employment Agreement that we
propose would become effective should Closing occur under the Merger Agreement. If these changes
are acceptable to you and to MMI, please arrange to sign the attached
copy of this letter and arrange to have it signed by MMI.

We confirm
that the terms of this letter will not have any force or effect unless and until
Closing occurs as defined in the Merger Agreement.

The amendments to the Employment Agreement are as follows:

*  *  *  *  *

	1.	 	Employment

	 	 	 
	Position:

	 	Group Chief Financial Officer of Sims
	 
	 	 
	Reporting to:

	 	Group Chief Executive Officer of Sims

	2.	 	Term

The term of employment will continue through to close of business on 30 June 2012
and shall thereafter be extended in accordance with the terms of the Employment Agreement.

METAL
RECYCLING | MANUFACTURING | ALUMINIUM | ENERGY | INTERNATIONAL | STEEL | PLASTICS | INDUSTRIAL | RECYCLING SOLUTIONS

 

 

	3.	 	Compensation

(a) Base
compensation: This will remain be adjusted to $US600,000 with
effect from Closing
and would then be subject to further amendment in accordance with the terms of the Employment
Agreement.

(b) Annual bonus: The annual bonus arrangements shall continue to apply on the same basis
as the existing arrangements but will be reset to apply for the
period to 30 June 2008. Any
entitlement will be paid in full at or before Closing.

From
1 July 2008, you will eligible to receive the an annual bonus of up to 100% of
your Base Remuneration under the Sims Revised Short Term Incentive (STI) plan as determined
by the Remuneration Committee consistent with the combined base
salary and cash bonus earnings potential under the Employment Agreement.

(c) Annual
Restricted Stock Grant: All prior Annual Restricted Stock Grants made to you will vest
in accordance with the terms of your Employment Agreement and the 2002 Stock Plan (including any
grants made by MMI in respect of the period ending 30 June 2008
at or before Closing). You will
become entitled to participate in the Sims LTI for an amount equal to
100% of your Base Compensation
effective from 1 July 2008 and thereafter to annual grants under the Sims LTI.

	4.	 	Other terms

Life
insurance and auto allowance consistent with past practice. Vacation
will be 5 weeks per fiscal year of Sims and any unutilised
vacation will be forfeited. All other
terms of your Employment Agreement remain unamended.

	5.	 	Confirmation as to effect of this letter

You hereby
agree and confirm that none of the employment changes or terms contained in this
letter shall trigger an entitlement by you (other than vesting of all stock grants) to the
payments and benefits described in Section 4(c) of your original
employment agreement dated
1 July 2001, or those described in Sections 2 and/or 3 of your amended employment
agreement dated 10 August 2005, or otherwise constitutes
constructive discharge.

If you
agree with the terms of this letter, please sign the attached copy of this letter,
arrange for it to be signed by MMI and then returned on or before the time of execution of the
Merger Agreement.

Yours sincerely

/s/  Paul Mazoudier

PAUL MAZOUDIER

Chairman

	 	 	 	 	 	 	 
	Signed:
	 	/s/  Robert Larry	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	ROBERT LARRY	 	 	 	 
	Dated:

	 	10/10/07

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