Document:

exv10w6

 

Exhibit 10.6

	 	 	 
	24 September, 2007

	 	
	Mr Jeremy Sutcliffe

26 Prince Albert Street

MOSMAN NSW 2088

	 	Level 6 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 Jeremy

Future Terms of Employment

The purpose of this letter is to set out the arrangements which will apply to your employment
with Sims Group Limited (Company) in the event that the
acquisition of Metal Management Inc. (‘MMI’)
proceeds. The Letter of Employment dated 5 September 2005 (2005 Contract) will continue to apply in
full force, except to the extent that it is amended by this letter.

	1.	 	Position and Responsibilities
	 
	1.1	 	Effective on completion of the MMI transaction, you (You) will assume the position of Executive
Director & Chairman European/Australian Metal Recycling and Global SRS Divisions Operations of the
Company.
	 
	1.2	 	You will report to the Board of Directors of the Company.
	 
	1.3	 	Your Key Reports will be Ross Cunningham, Executive Director, Darron McGree, Managing Director
(Australia & New Zealand) and Graham Davy, CEO (Europe & Global SRS).
	 
	1.4	 	You will be on the following Board Committees: FIC, SHEC, Nomination, Disclosure (all as a
Committee Member); RAC & Compensation (in attendance).
	 
	1.5	 	Your principal responsibilities will be:

	 	(i)	 	Assisting the Group CEO, as required, in fulfilling his principal responsibilities,
including but not limited to:

	 	(a)	 	advice on all aspects of the Sims North American metals recycling business and
key relationships and joint ventures (e.g. Adams); and

	 	(b)	 	overseeing the Executive Director (RC) rationalization of the Sydney Corporate
Office.

	 	(ii)	 	The day to day management of the non North American metal recycling operations, namely
Australasia, Europe and Sims Recycling Solutions including, in conjunction with the Group
CEO, the development of medium and long term strategies (including new regions such as Asia,
Continental Europe and Africa) and progressively assisting in the transfer of
responsibilities to the Group CEO in accordance with Board directions from time to time.

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

 

 

	 	(iii)	 	Recommending to the Board and Group CEO, strategies in respect of the structuring of
the European Metals and SRS businesses and the future of the Australian non core
businesses (ARA, Manufacturing, TyreCycle, SimsSteel and LMS).
	 
	 	(iv)	 	In conjunction with the Group CEO providing Australian and European Investor
Relations services.
	 
	 	(v)	 	Developing Group “Sustainability/Corporate Social Responsibility” policy.

	1.6	 	You will be permitted to assume a non-executive board
appointment after 1 January, 2009 in a
company that does not directly compete with the Company.
	 
	2.	 	Term and Termination
	 
	2.1	 	Neither the Company nor You will exercise its/your right to terminate the employment until at
least 31 October 2009. After that date, the Company and You may terminate the employment in
accordance with clause 6 of the 2005 Contract.
	 
	2.2	 	In the event that your position becomes redundant, then the Company will make a payment to you
of 12 months of your then current Package in lieu of notice in accordance with clause 6 of the 2005
Contract.
	 
	3.	 	Remuneration

Fixed Remuneration Package (the Package)

	3.1	 	You are entitled to a total base remuneration package of $1,474,234.00 per annum (the Package)
commencing from 1 July 2007.
	 
	3.2	 	The Package includes the total cost to the Company of all Package components including salary,
superannuation, benefits, and the cost of fringe benefits tax payable by the Company on benefits
provided.
	 
	3.3	 	The Package will be subject to subject to increases on 1 July 2008 and 1 July 2009. Your
Package will be increased at a level equal to the Group average increase.
	 
	3.4	 	You will not be entitled to any fees or remuneration in addition to the Package in respect of
any office or position as director of any company in the Group which You may hold during your
employment with the Company.

Integration Bonus

	3.5	 	You will be entitled to receive a cash bonus payable on 1 August 2009 of up to $US 1 million,
payable in whole or in part as determined by the Remuneration Committee based upon performance
against specified targets set by the Company’s Integration Committee.

Annual Executive Bonus (Short Term Incentive)

	3.6	 	You will be entitled to participate in the Executive Annual Bonus Program (STI Bonus) under the
Group category with a maximum bonus potential of 75% of your Package. Payment of any bonus is based
on the achievement of personal priorities (20% of the 75%) and the profitability (ROCCE) of the
Company (80% of the 75%).
	 
	3.7	 	In the event that your employment is terminated by the Company (for any reason other than for
summary termination), then you will be entitled to a pro rata
payment of the STI Bonus, based on any partial period of employment during the bonus year.

 

 

Performance Rights (Long Term Incentive)

	3.8	 	Subject to shareholder approval at the Company’s next Annual General Meeting (AGM) in November
2007, You will be eligible to participate in the Sims Group Long Term Incentive Plans (LTl’s).
Annual grants under those LTl’s will be based on no less than 100% of the Package.
	 
	3.9	 	In the event that your position is made redundant, You will qualify for vesting of all tranches
under the LTl’s when the performance hurdles are met, notwithstanding that your employment may have
ceased prior to those performance hurdles being met.

	4.	 	Retention Incentive Scheme

	4.1	 	The Retention Incentive Scheme as contained in the 2005 Contract (RIS) will continue to apply.
	 
	4.2	 	In the event that your employment is terminated by the Company (for any reason other than for
summary termination) before Tranche E vests under the RIS, then you will be entitled to a cash
payment on the termination of your employment in the sum of A$700,000.

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

Jeremy, I look forward to working with you to make the MMI acquisition a great success for the Sims
Group.

Yours sincerely,

/s/ Paul Mazoudier

PAUL MAZOUDIER

Chairman

Yours sincerely,

/s/ Jeremy Sutcliffe

JEREMY SUTCLIFFE

Group Chief Executiveexv10w7

 

Exhibit 10.7

6 February 2001

Mr R. Cunningham

22A Upper Avenue Road

MOSMAN NSW 2088

Dear Ross,

The purpose of this letter is to specify conditions which would apply to you should your employment
with the Company be terminated by the Company for any reason other than fraud or gross misconduct
(“termination”) and to specify the notice required by you in the case of your resignation from the
Company.

			
	w Termination Payment:	 	In the case of termination, and in
recognition of your past long
service to the Company, you shall be
entitled to receive one year’s total
annual remuneration.

Total annual remuneration will be defined as:

	 	•	 	your base salary as approved in the
last review, plus the gross value of
the most recent annual bonus paid;
	 
	 	•	 	the remuneration value of the
company vehicle provided in your
package (if applicable);
	 
	 	•	 	the value, or notional value of the
company contributions to your
superannuation fund;
	 
	 	•	 	the total value of any other
remuneration — eg. “salary
sacrifices” provided in your package
(if applicable).

 

 

			
	w 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 the take-over, you
will be entitled to a retention payment equal to 6 months total
annual remuneration. The Company shall not be entitled to
terminate your employment during the 6 month period without
payment of the retention payment.
	 
	w Resignation:	 	In the case of your resignation from the
employ of the Company, you must provide
3 months prior notice thereof to the
Company.
	 
	w
Corporations Law
    Limit on Benefits:	 	If section 200B of the Australian Corporations Law applies, then nothing in
this letter shall allow you to receive an amount greater than that permitted under section
200G of the Australian Corporations Law.

I should also note that the Company has just adopted a new General Redundancy Policy (the “New
Policy”) (copy attached). You would be entitled, in the case of Redundancy (as defined under the
New Policy), to a payment under either the New Policy or the previous policy it replaced (the
“Existing Policy”) (as defined under the New Policy) (copy attached). The payment will be the
greater of the two amounts calculated in accordance with the New Policy and the Existing Policy
applicable to an employee on job level JG 22+.

These conditions will expressly form part of your contract of service with the Company from the
date of this letter. Kindly sign, date and return the attached copy of this letter to indicate
your acceptance of these conditions.

Yours sincerely,

SIMSMETAL LIMITED / SIMSMETAL SERVICES PTY LTD

JOHN CRABB

Managing Director and CEO

Simsmetal Limited

			
	I accept these conditions of
employment:	 	
 
ROSS CUNNINGHAM

			
	Dated:exv10w8

 

Exhibit
10.8

	 	 	 
	PRIVATE & CONFIDENTIAL

	 	
	 

	 	Level 6 Sims Group House

41 McLaren Street North Sydney NSW 2060 Australia
	12 November 2007
	 	 
	 

	 	GPO Box 4155 Sydney NSW 2001

Phone 612 9956 9100 Facsimile 612 9954 9680

www.sims-group.com

	Mr Ross Cunningham 

Sims Group Limited 

6/41 McLaren Street

NORTH SYDNEY NSW 2060

	 	Sims Group Limited ABN 37 008 634 526

Dear Ross,

The purpose of this letter is to set out the currently proposed post-Metal Management arrangement
which will apply to you assuming completion. Nothing in this letter is intended to replace the
conditions which apply to your employment under the letter dated 6 February 2001, and that letter
will continue to have full contractual force.

	1.	 	Effective on Closing of the Sims Metal Management transaction, you will retain your position
as an ‘Executive Director’ of Sims Group Limited, reporting to Jeremy Sutcliffe.

	2.	 	In that position your principal responsibilities during calendar 2008, will be to assist in
the post closure merger integration implementation with particular focus on:

	 	•	 	assisting the new Group CFO to transition agreed finance and administration
functions from Sydney to Chicago/New York;
	 
	 	•	 	ensuring an agreed adequate structure remains in place in Sydney for the F08 audit
and ongoing ASX, treasury and banking purposes (and recommending/appointing appropriate
agreed personnel);
	 
	 	•	 	implementing and progressing the divestiture process for any agreed divesture of
assets currently within your reporting responsibility area — ARA, TyreCycle,
Manufacturing and LMS;
	 
	 	•	 	reviewing, and if agreed appropriate, overseeing the transition of the CME back
office functions to Hong Kong or an alternate agreed location;
	 
	 	•	 	ensuring the Fiscal 08 audit is appropriately managed/completed.

	 	 	 	These responsibilities, together with your contribution to the successful completion of the
MM transaction, would constitute the basis of your F08 personal priorities for STI purposes.

1

 

	3.	 	Your remuneration package (‘Package’) for F08 will be as per your most recent review. Your
Package will be increased by 4.5% on 1 July 2008.

	4.	 	Subject to shareholder approval, you will receive, effective 1 July 2007, a grant of three
tranches of LTI Performance Rights/cash entitlements. In the event that your position is made
redundant under the terms of the Company LTI Scheme, you would qualify for vesting of these
three tranches, as/when the retention performance hurdles are met, notwithstanding that your
employment may cease prior to those performance hurdles being met. Any further grants will be
at the discretion of the Board.

	5.	 	You will also be entitled to pro rata STI, based on any partial period of employment in the
F08 and F09 bonus years.

I look forward to working with you to make the acquisition a great success for the Sims Group.

Yours sincerely,

/s/ Paul Mazoudier

Paul Mazoudier

Chairman

Sims Group

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