Document:

Exhibit 10.15
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                      NON-STATUTORY STOCK OPTION AGREEMENT

                      1993 STOCK INCENTIVE PLAN, AS AMENDED

     THIS AGREEMENT is dated as of __________ between SCHNITZER STEEL
INDUSTRIES, INC., an Oregon corporation (the "COMPANY") and _________________
(the "OPTIONEE"), pursuant to the Company's 1993 Stock Incentive Plan, as
amended. The Company and the Optionee agree as follows:

     1. The Company hereby grants to the Optionee on the terms and conditions of
this Agreement, the right and option (the "OPTION") to purchase all or any part
of ______ shares of the Company's Class A Common Stock at a purchase price of
$_____ per share. The Option is not intended to be an Incentive Stock Option, as
defined in Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code"), and therefore is a Non-Statutory Stock Option.

     2. The terms and conditions set forth in the attached Exhibit A are hereby
incorporated into and made a part of this Agreement.

     3. The Vesting Reference Date for this Option is __________. See paragraph
1 of Exhibit A.

     4. The Grant Date for this Option is ___________. The Option shall continue
in effect until the date ten years after the Grant Date (the "EXPIRATION DATE")
unless earlier terminated as provided in paragraphs 2 and 5 of Exhibit A.

     IN WITNESS WHEREOF, the parties have executed this Agreement in duplicate
as of the date written above.

SCHNITZER STEEL INDUSTRIES, INC.

By: _____________________________           _______________________________
    Address:                                Optionee:
    3200 NW Yeon Avenue                     Address:
    Portland, OR 97210

<PAGE>

                       EXHIBIT A TO STOCK OPTION AGREEMENT

     1. Time of Exercise of Option. Until it expires or is terminated as
provided in paragraphs 2 or 5, this Option may be exercised from time to time to
purchase shares up to the following limits:

          -------------------------------------- --------------------------
            Years After Vesting Reference Date     Percentage Exercisable
          -------------------------------------- --------------------------

          -------------------------------------- --------------------------

          -------------------------------------- --------------------------

          -------------------------------------- --------------------------

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The foregoing notwithstanding, in the event Optionee's service as a director of
the Company terminates due to a reduction in the number of members of the Board
of Directors in office on the date hereof or the imposition of a requirement
that a majority of the members of the Board of Directors of the Company meet the
independence requirements of the exchange on which the Company's stock is
listed, all of the options which have not yet vested shall be subject to
accelerated vesting and shall automatically vest on the last day of the
Optionee's term as a director of the Company.

     2. Termination of Tenure as a Director.

          2.1 If the Optionee's service as a director of the Company terminates
for any reason other than death, total disability, retirement, reduction in the
number of members of the Board of Directors in office on the date hereof, or
imposition of a requirement that a majority of the members of the Board of
Directors meet the independence requirements of the exchange on which the
Company's stock is listed, the Option may be exercised at any time prior to the
Expiration Date or the expiration of 30 days after the date of the termination,
whichever is the shorter period, but only if and to the extent the Optionee was
entitled under paragraph 1 to exercise the Option on the date of termination.

          2.2 If the Optionee's service as a director of the Company is
terminated because of death, total disability, retirement, reduction in the
number of members of the Board of Directors in office on the date hereof, or
imposition of a requirement that a majority of the members of the Board of
Directors meet the independence requirements of the exchange on which the
Company's stock is listed, the Option may be exercised at any time prior to the
Expiration Date or 12 months after the date of termination, whichever is the
shorter period, but only if and to the extent the Optionee was entitled under
paragraph 1 to exercise the Option on the date of termination. The term "total
disability" means a mental or physical impairment which is

<PAGE>

expected to result in death or which has lasted or is expected to last for a
continuous period of 12 months or more and which cause the Optionee to be
unable, in the opinion of the Company and two independent physicians, to perform
his or her duties as a director of the Company and to be engaged in any
substantial gainful activity. Total disability shall be deemed to have occurred
on the first day after the Company and the two independent physicians have
furnished their opinion of total disability to the Company. The term
"retirement" shall mean (1) normal retirement after reaching age 65, (2) early
retirement after reaching age 55 and completing 10 years of service, or (3)
early retirement after completing 30 years of service without regard to age. If
the Optionee's tenure on the Board of Directors of the Company is terminated by
death, the Option shall be exercisable only by the person or persons to whom the
Optionee's rights under the Option pass by the Optionee's will or by the laws of
descent and distribution of the state or country of the Optionee's domicile at
the time of death.

     3. Method of Exercise of Option.

          3.1 The Option may be exercised only by notice in writing from the
Optionee to the Company of the Optionee's intention to exercise, specifying the
number of shares the Optionee desires to purchase and the date on which the
Optionee desires to complete the transaction, which may not be more than 30 days
after receipt of the notice, and, unless in the opinion of counsel for the
Company such a representation is not required to comply with the Securities Act
of 1933, as amended, containing a representation that it is the Optionee's
intention to acquire the shares for investment and not with a view to
distribution. On or before the date specified for completion of the purchase,
the Optionee must have paid the Company the full purchase price in cash,
including cash that may be the proceeds of a loan from the Company, or in shares
of Class A Common Stock previously acquired by the Optionee and held for at
least six months, valued at fair market value. No shares shall be issued until
full payment therefore has been made.

          3.2 Upon notification of the amount due, if any, and prior to or
concurrently with delivery of the certificates representing the shares for which
the option was exercised, the Optionee shall pay to the Company amounts
necessary to satisfy any applicable federal, state, and local withholding tax
requirements. If additional withholding becomes required beyond any amount
deposited before delivery of the certificates, the Optionee shall pay such
amount to the Company on demand. If the Optionee fails to pay the amount
demanded, the Company shall have the right to withhold that amount from the
amounts payable by the Company to the Optionee, including salary, subject to
applicable law.

     4. Nontransferability of Option. The Option may not be assigned or
transferred by the Optionee except by will, by the laws of descent and
distribution of the state or country of his or her domicile at the time of death
or pursuant to a qualified domestic relations order as defined under the Code or
Title 1 of the Employee Retirement Income Security Act, and during the
Optionee's lifetime the Option may be exercised only by the Optionee.

<PAGE>

     5. Changes in Capital Structure.

          5.1 If during the term of the Option the outstanding shares of Class A
Common Stock are increased or decreased or changed into or exchanged for a
different number or kind of shares or other securities of the Company or of
another corporation, by reason of any reorganization, merger, consolidation,
plan of exchange, recapitalization, reclassification, stock split-up,
combination of shares, or dividend payable in shares, appropriate adjustment
shall be made by the Committee (as defined in the Plan) in the number and kind
of shares subject to the Option, or the unexercised portion thereof. Such
adjustments shall be made without change in the total price applicable to the
unexercised portion of the Option and with a corresponding adjustment in the
option price per share. Any such adjustment made by the Committee shall be
conclusive.

          5.2 In the event of dissolution of the Company or a merger,
consolidation, or plan of exchange affecting the Company, in lieu of making any
adjustments that may be provided for above in this paragraph 5 or in lieu of
having the Option continue unchanged, the Committee may, in its sole discretion,
provide a 30-day period prior to such event during which the Option will be
exercisable for 100 percent of the shares subject to the Option and after which
the Option will terminate.

     6. Conditions on Obligations. The Company shall not be obligated to issue
shares upon exercise of the Option if Company is advised by its legal counsel
that such issuance would violate applicable state or federal laws, including
securities laws. The Company will use its best efforts to take any steps
required by state or federal law or applicable regulations in connection with
issuance of shares upon exercise of the Option.

     7. No Rights Conferred. Nothing in the Plan or this Agreement shall confer
upon the Optionee any right to continue as a director of the Company, or to
interfere in any way with the right of the Company to terminate the Optionee's
compensation or benefits.

     8. Successors of Company. This Agreement shall be binding upon and shall
inure to the benefit of any successor or successors of the Company but except as
provided herein the Option may not be assigned or otherwise disposed of by the
Optionee.

     9. Notices. Any notices under this Agreement must be in writing and will be
effective when actually delivered or, if mailed, when deposited into the United
States mail, postage prepaid. Mail shall be directed to the address stated in
this Agreement or to such address as a party may certify by notice to the other
party.EXHIBIT 10.16
                                                                   -------------

                              EMPLOYMENT AGREEMENT

     This Employment Agreement ("AGREEMENT") is entered into between Schnitzer
Steel Industries, Inc. ("COMPANY") and Barry A. Rosen ("ROSEN").

                                   BACKGROUND

     A.   Rosen has served as the Chief Financial Officer of the Company since
1982.

     B.   Rosen advised the Company that he intended to retire as of the close
of the Company's current fiscal year. The Company has determined that it is in
the Company's best interest to delay Rosen's retirement in order to effectuate
an orderly transition of his duties to a new chief financial officer of the
Company.

     C.   Rosen has agreed to remain as the Chief Financial Officer of the
Company, subject to entering into this Agreement.

     D.   The parties agree that the obligations and benefits of the parties in
this Agreement are reasonable under the circumstances, and each party has
entered freely into this Agreement.

          Therefore, the parties agree as follows:

     1.   SERVICES.

          1.1    TERM. Subject to earlier termination in accordance with Section
3, the Company will continue to employ Rosen, and Rosen will work for the
Company in the terms set forth in this Agreement from September 1, 2004 (the
"EFFECTIVE DATE") until June 2, 2005 (the "EXPIRATION DATE"). Company, at its
sole option may extend the Term of this Agreement for up to an additional three
(3) months, by notice given to Rosen not later than May 1, 2005, which notice
 shall specify the new Expiration Date.

          1.2    SERVICES. Rosen will continue to perform his responsibilities
as Chief Financial Officer of the Company under the direction of the Company's
Chief Executive Officer in the manner as Rosen has performed for the Company
prior to the date hereof. Rosen will also be responsible for training his
successor as designated by the Chief Executive Officer. Without limiting the
generality of the foregoing, subject to the direction of the Chief Executive
Officer, Rosen shall have responsibility for, and exercise authority over, the
financial operations of the Company. Rosen shall continue to be appointed
Vice-President and Chief Financial Officer of the Company during the term of
this Agreement.

          1.3    OBLIGATIONS OF ROSEN. Rosen will devote his full time to
employment with the Company during the term of this Agreement.
<PAGE>

     2.   COMPENSATION.

          2.1    BASE SALARY. From the Effective Date and during the term of
this Agreement, Rosen will continue to receive his annual base salary, with such
increases, if any, as may be approved by the Compensation Committee of the
Company's Board of Directors.

          2.2    EVA BONUS. Rosen will receive his EVA Bonus on the date the
Company distributes EVA Bonuses to its employees for fiscal year 2004. Rosen
shall receive his EVA Bonus Bank on November 30, 2004. All EVA payments shall be
subject to standard payroll deductions. Rosen waives any right to receive an EVA
Bonus attributable to his employment from the Effective Date until the
Expiration Date.

          2.3    RETENTION BONUS. In consideration of Rosen entering into this
Agreement, Rosen will be paid a bonus in the amount of $280,000.00 on November
30, 2004. The bonus payment shall be subject to standard payroll deductions.

          2.4    STOCK OPTIONS. The parties acknowledge that Rosen was granted
stock options during calendar years 2001 through 2003 pursuant to Stock Option
Agreements between the Company and Rosen ("STOCK OPTION AGREEMENTS"), which will
not be vested as of the Expiration Date. In further consideration of Rosen's
undertakings hereunder, the Company agrees that subject to termination of
Rosen's employment pursuant to Sections 3.1 or 3.2 below, the Stock Option
Agreements are hereby amended to provide that all stock options granted
thereunder, if not sooner vested, will be vested on June 2, 2005.

          2.5    OTHER BENEFITS. Except as otherwise provided in this Agreement,
the employee benefits and retirement program in effect for the Company to which
Rosen will be entitled and in which he will be entitled to participate during
the term of this Agreement will be identical to those in which he currently
participates, as such benefits and programs may be modified from time to time
for all Company participants. Notwithstanding the foregoing, Rosen will not earn
any additional years of Credited Service under the Company's Supplemental
Executive Retirement Bonus Plan from and after the Effective Date.

     3.   TERMINATION BENEFITS AND OBLIGATIONS ON TERMINATION. Rosen's
employment pursuant to this Agreement may be terminated by Rosen or by the
Company as set forth in this Section 3.

          3.1    AUTOMATIC TERMINATION. Rosen's employment will terminate
automatically upon his death or permanent disability, as determined pursuant to
the Company's policies as set forth in its Employee Policy Manual. In the event
of termination of this Agreement pursuant to this Section 3.1, Rosen will have
the right to receive the bonuses provided for in Sections 2.2 and 2.3 above, but
the amendment to the Stock Option Agreements described in Section 2.4 above will
be null and void.

          3.2    TERMINATION BY COMPANY FOR CAUSE OR BY ROSEN. Rosen's
employment under this Agreement may be terminated at the option of the Company's
Board of Directors for cause only for fraud, dishonesty or willful misconduct
compromising Rosen's reputation or ability to represent the Company in
performing his duties under this Agreement. In the event of termination of this
Agreement by the Company pursuant to this Section 3.2, or if Rosen terminates
this Agreement for any reason other than as provided in Section 3.1 above,

                                       -2-
<PAGE>

Rosen will have the right to receive the salary provided for in Section 2.1 that
has been earned by him through the date of his termination. All other amounts
and benefits due to Rosen hereunder that have not been delivered to Rosen prior
to the Termination Date shall be deemed forfeited and the amendment to the Stock
Option Agreements described in Section 2.4 above will be null and void.

          3.3    TERMINATION BY THE COMPANY WITHOUT CAUSE. In the event of
termination of Rosen's employment without cause, Rosen will have the right to
receive all bonuses and benefits as provided for in Section 2 above, which shall
be payable as provided therein.

     4.   MISCELLANEOUS PROVISIONS.

          4.1    NOTICES. Any notice or other communication required or
permitted under this Agreement shall be in writing (which may take the form of a
telecopy or email communication) and shall be sent by certified mail, return
receipt requested, telecopier, email or hand delivery:

                 (a)   If to the Company, to the following address:

                       Schnitzer Steel Industries, Inc.
                       3200 NW Yeon Avenue
                       Portland, OR 97210
                       Attention:  Robert W. Philip, President and CEO
                       Telecopy:  (503) 323-2793
                       Email:  bphilip@schn.com

                       with copy to:

                       Schnitzer Steel Industries, Inc.
                       3200 NW Yeon Avenue
                       Portland, OR 97210
                       Attention:  Ilene Dobrow Davidson, Secretary
                       Telecopy:  (503) 299-2277
                       Email:  idavidson@schn.com

                 (b)   If to Rosen, to the following address:

                       Barry A. Rosen
                       1130 NW 12th Ave., #708
                       Portland, OR  97209
                       Telecopy:  (503) 323-2793
                       Email:  brosen@schn.com

                                       -3-
<PAGE>

All notices and communications shall be deemed to have been duly given or made
(i) when delivered by hand, (ii) three (3) business days after being deposited
in the U. S. mail, postage prepaid, (iii) when emailed, receipt acknowledged by
email response, or (iv) when telecopied, receipt acknowledged. The address,
telecopy number or email address to which notices or other communication shall
be directed, may be changed from time to time by either party by giving written
notice to the other party of the substituted address, telecopy number or email
address.

          4.2    SUCCESSORS AND ASSIGNS. The agreement for services of Rosen is
personal in nature, and Rosen may not assign or delegate his rights or
obligations under this Agreement. This Agreement may not be assigned by the
Company without the consent of Rosen. Subject to the foregoing, this Agreement
shall inure to the benefit of and be binding upon the successors and permitted
assigns of each party.

          4.3    AMENDMENT AND WAIVER. No supplement, modification or amendment
of, or waiver with respect to, this Agreement shall be binding unless executed
in writing by both parties.

          4.4    HEADINGS. The headings in this Agreement are solely for
convenience of reference and shall not limit or otherwise affect the meaning of
this Agreement.

          4.5    SEPARABILITY AND CONFLICTS. If one or more of the provisions of
this Agreement or any application thereof is declared invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions and any application thereof will in no way be affected or
impaired.

          4.6    ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement between the parties and supersedes all prior agreements between the
parties with respect to the subject matter hereof.

          4.7    GOVERNING LAW. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Oregon.

The parties have executed this Agreement on August 20, 2004.

                                     SCHNITZER STEEL INDUSTRIES, INC.
                                     an Oregon corporation

                                     By: /s/  Robert W. Philip
                                         -----------------------------------
                                         President and CEO

                                         /s/  Barry A. Rosen
                                         -----------------------------------

                                       -4-

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