Document:

Second Amended and Restated Credit Agreement

 Exhibit 4.3 
 SECOND AMENDMENT TO 
 AMENDED AND RESTATED CREDIT
AGREEMENT 
 This SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is entered
into as of June 10, 2008, by and among SCHNITZER STEEL INDUSTRIES, INC., an Oregon corporation (the “Borrower”), BANK OF AMERICA, N.A., a national banking association (“Bank of America”), WELLS FARGO BANK,
NATIONAL ASSOCIATION, a national banking association (“Wells Fargo”), U.S. BANK NATIONAL ASSOCIATION, a national banking association (“U.S. Bank”), THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., a banking corporation
organized under the laws of Japan (“BTM”), CITICORP USA, INC., a Delaware corporation (“Citicorp”), FIRST HAWAIIAN BANK, a Hawaii corporation (“First Hawaiian”), COMERICA WEST INCORPORATED, a
Delaware corporation (“Comerica”), HSBC BANK USA, N.A., a national banking association (“HSBC Bank”), JPMORGAN CHASE BANK, N.A., a national banking association (“JPMorgan Chase”), THE NORTHERN TRUST
COMPANY, an Illinois banking corporation (“Northern Trust”), PNC BANK, NATIONAL ASSOCIATION, a national banking association (“PNC Bank” and together with Bank of America, Wells Fargo, U.S. Bank, BTM, Citicorp, First
Hawaiian, Comerica, HSBC Bank, JPMorgan Chase and Northern Trust collectively, the “Lenders” and individually, a “Lender”), and BANK OF AMERICA, N.A., as administrative agent for the Lenders (in such capacity, the
“Administrative Agent”) and as issuer of letters of credit (in such capacity, the “L/C Issuer”). 
 RECITALS 
 A. The Borrower, the Lenders, the Administrative Agent and the L/C Issuer are parties to that
certain Amended and Restated Credit Agreement dated as of November 8, 2005, as amended by that certain Amendment to Amended and Restated Credit Agreement dated as of July 3, 2007 (as the same has been or may be amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”), pursuant to which the Lenders have agreed to make revolving loans and the L/C Issuer has agreed to issue letters of credit to or for the account of the
Borrower. 
 B. The Credit Agreement contains certain covenants binding upon the Borrower, including the delivery of quarterly
financial statements pursuant to Section 6.01(b) of the Credit Agreement and the maintenance of a Consolidated Fixed Charge Coverage Ratio (as defined in the Credit Agreement) pursuant to Section 7.11(b) of the Credit
Agreement. 
 C. The Borrower has understood, interpreted and administered Section 6.01(b) of the Credit Agreement
to not require the delivery of a schedule of shareholder’s equity with the quarterly financial statements delivered for the fist three fiscal quarters of each year and has understood and interpreted the definition of the Consolidated Fixed
Charge Coverage Ratio to exclude stock repurchases from the calculation of such ratio as used in Section 7.11(b) of the Credit Agreement and has reflected such understanding and interpretation in its reporting pursuant to
Section 6.02(a) of the Credit Agreement, and has requested that the Lenders, the L/C Issuer and the Administrative Agent amend the Credit Agreement to conform certain of its terms to be consistent with the Borrower’s understanding,
interpretation and administration of the

  

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Credit Agreement, which the Lenders, the L/C Issuer and the Administrative Agent have agreed to do, subject to the terms and conditions set forth below. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:

 AGREEMENT 
 1. Definitions; Interpretation. Capitalized terms not otherwise defined in this Amendment shall have the meanings given in the Credit Agreement as amended by this Amendment. The rules of
construction and interpretation specified in Sections 1.02 and 1.05 of the Credit Agreement also apply to this Amendment and are incorporated herein by this reference. 
 2. Amendments to Credit Agreement. The Credit Agreement is amended as follows: 
 (a) Amendment to Section 1.01. In the definition of “Consolidated Fixed Charge Coverage Ratio,” the phrase “and
payments (including any sinking fund or similar deposit) paid in cash on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any Equity Interest in the Borrower” is deleted. 
 (b) Amendment to Section 6.01. In subsection (b) of Section 6.01 the words “shareholders’
equity” and the comma immediately preceding such words are deleted. 
 3. Conditions to Effectiveness.
Notwithstanding anything contained herein to the contrary, Section 2 of this Amendment shall be effective as of November 8, 2005; provided that each of the following conditions is fully and concurrently satisfied not later
than 5:00 p.m., Seattle time, on June 13, 2008: 
 (a) Delivery of Amendment. The Borrower, Lenders sufficient to
constitute the Required Lenders and the Administrative Agent shall have executed and delivered counterparts of this Amendment to the Administrative Agent; 
 (b) Consent of Guarantors. The Administrative Agent shall have received the Consent of Guarantors in the form of Exhibit A attached hereto, executed by each of the Guarantors; and

 (c) Other Documents. The Administrative Agent and the Lenders shall have received such other documents, instruments,
and undertakings as the Administrative Agent and such Lender may reasonably request. 
 4. Administrative Agent
Authorization. The Lenders hereby authorize and instruct the Administrative Agent to execute and deliver this Amendment. 
 5. No Further Amendment. Except as expressly modified by this Amendment, the Credit Agreement and the other Loan Documents shall remain unmodified and in full force and effect and the parties hereby ratify their respective
obligations thereunder. 
  

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 6. Reservation of Rights. The Borrower acknowledges and agrees that the execution and
delivery by the Administrative Agent, the Lenders and the L/C Issuer of this Amendment shall not be deemed to create a course of dealing or otherwise obligate the Administrative Agent, any Lender or the L/C Issuer to forbear or execute similar
amendments under the same or similar circumstances in the future. 
 7. Miscellaneous. 
 (a) Integration. This Amendment, together with the other Loan Documents, comprise the complete and integrated agreement of the
parties on the subject matter hereof and thereof and supersede all prior agreements, written or oral, on such subject matter. 
 (b) Severability. Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions thereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 (c) Counterparts. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. 
 (d) Governing Law. This Amendment shall be governed by
and construed in accordance with, the law of the state of Washington applicable to agreements made and to be performed entirely within such state; provided that the Administrative Agent, each Lender and the L/C Issuer shall retain all rights
arising under Federal law. 
 (e) Oral Agreements Not Enforceable. 
 ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE
UNDER WASHINGTON LAW. 
 IN WITNESS WHEREOF, the Borrower, the Administrative Agent, the Lenders and the L/C Issuer
signing below have caused this Amendment to be duly executed as of the date first above written. 
  

			
	SCHNITZER STEEL INDUSTRIES, INC.
		
	By:	 	 

			
		
	Name:	 	 Rob Stone

			
		
	Title:	 	 Vice President & Treasurer

  

 3 

							
	 BANK OF AMERICA, N.A., as
 Administrative Agent

		
	By:	 	 

		
	Name:	 	 Dora A. Brown

		
	Title:	 	     Vice President

	
	BANK OF AMERICA, N.A., as a Lender, an L/C Issuer and Swing Line Lender
		
	By:	 	 

		
	Name:	 	 Timothy G. Holsapple

		
	Title:	 	     SENIOR VICE PRESIDENT

	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	U.S. BANK NATIONAL ASSOCIATION, as a
	Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

  

 4 

							
	 BANK OF AMERICA, N.A., as
 Administrative Agent

		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	 BANK OF AMERICA, N.A., as a Lender, an L/C
 Issuer and Swing Line Lender

		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender
		
	By:	 	 

		
	Name:	 	 James L. Franzen

		
	Title:	 	     Vice President

	
	U.S. BANK NATIONAL ASSOCIATION, as a
	Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

  

 4 

							
	 BANK OF AMERICA, N.A., as
 Administrative Agent

		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	 BANK OF AMERICA, N.A., as a Lender, an L/C
 Issuer and Swing Line Lender

		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	U.S. BANK NATIONAL ASSOCIATION, as a
	Lender
		
	By:	 	 

									
		
	Name:	 	 Richard J. Ameny, Jr.

		
	Title:	 	 Vice President

  

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	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Lender
		
	By:	 	 

		
	Name:	 	 Victor Pierzchalski

		
	Title:	 	     Authorized Signatory

	
	CITICORP USA, INC., as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	FIRST HAWAIIAN BANK, as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	COMERICA WEST INCORPORATED, as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	HSBC BANK USA, N.A., as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

  

 5 

							
	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	CITICORP USA, INC., as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	FIRST HAWAIIAN BANK, as a Lender
		
	By:	 	 

		
	Name:	 	       Paula C.H. Chang

		
	Title:	 	           Vice
President

	
	COMERICA WEST INCORPORATED, as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	HSBC BANK USA, N.A., as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

  

 5 

							
	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	CITICORP USA, INC., as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	FIRST HAWAIIAN BANK, as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	COMERICA WEST INCORPORATED, as a Lender
		
	By:	 	 

		
	Name:	 	   Poonam A. Patel

		
	Title:	 	       Corporate Banking Officer

	
	HSBC BANK USA, N.A., as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

  

 5 

							
	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	CITICORP USA, INC., as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	FIRST HAWAIIAN BANK, as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	COMERICA WEST INCORPORATED, as a Lender
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	HSBC BANK USA, N.A., as a Lender
		
	By:	 	 

		
	Name:	 	   Mike A. Mitchell

		
	Title:	 	 Vice President, Commercial Banking

  

 5 

			
	JPMORGAN CHASE BANK, N.A., as a Lender

			
		
	By:	 	 

			
		
	Name:	 	 Clara Sohan

			
		
	Title:	 	 Vice President

			
	
	THE NORTHERN TRUST COMPANY, as a Lender

			
		
	By:	 	  

			
		
	Name:	 	  

			
		
	Title:	 	  

			
	
	PNC BANK, NATIONAL ASSOCIATION, as a Lender

			
		
	By:	 	  

			
		
	Name:	 	  

			
		
	Title:	 	  

  

 6 

					
	JPMORGAN CHASE BANK, N.A., as a Lender

					
		
	By:	 	  

					
		
	Name:	 	  

					
		
	Title:	 	  

					
	
	THE NORTHERN TRUST COMPANY, as a Lender

					
		
	By:	 	 

					
			
	Name:	 	Brandon Rolek	 	  

					
			
	Title:	 	Vice President	 	  

					
	
	PNC BANK, NATIONAL ASSOCIATION, as a Lender

					
		
	By:	 	  

					
		
	Name:	 	  

					
		
	Title:	 	  

  

 6 

			
	JPMORGAN CHASE BANK, N.A., as a Lender
		
	By:	 	  

			
		
	Name:	 	  

			
		
	Title:	 	  

			
	
	THE NORTHERN TRUST COMPANY, as a Lender

			
		
	By:	 	  

			
		
	Name:	 	  

			
		
	Title:	 	  

			
	
	PNC BANK, NATIONAL ASSOCIATION, as a Lender

			
		
	By:	 	 

			
		
	Name:	 	Marc C. Van Horn

			
		
	Title:	 	Credit Officer

  

 6Fiscal 2009 Annual Performance Bonus Program

 Exhibit 10.28 
 Fiscal 2009 Annual Performance Bonus Program 
 for John D. Carter and
Tamara L. Lundgren 
 The Amended and Restated Employment Agreements between the Company and each of John D. Carter and
Tamara L. Lundgren provide for annual cash bonuses under bonus programs to be developed by the Compensation Committee (the Committee), with bonuses payable based on Company financial performance and achievement of management objectives as determined
by the Committee at the beginning of each fiscal year. The annual bonus program for Mr. Carter and Ms. Lundgren for fiscal 2009 has two components. The first component consists of awards with cash payouts based on achievement of Company
financial performance targets. The second component is based on the achievement of management objectives established by the Committee. The two components of the annual performance bonus program shall operate independently, and the Committee shall
make determinations with respect to the second component without regard to the outcomes under the first component. 
 Company Financial
Performance Targets 
 Calculation of Cash Payout. For fiscal 2009, the Company financial performance
targets shall be the Company’s EPS and Return on Capital Employed (ROCE), and each performance target shall be weighted equally. Cash payouts to the participants under this component of the bonus program shall be determined based on the level
of achievement of each performance target. The Committee has established performance targets for EPS and ROCE and corresponding payouts as a percentage of a participant’s target amount. Payouts begin at positive levels of EPS and ROCE.

 Participants’ Target Amounts. The total target amount for Mr. Carter for the Company
financial performance component shall be 50% of his annual base salary as in effect on August 31, 2009, with one-half of this target amount subject to each of the two financial performance targets and the maximum total bonus under these two
targets not to exceed three times his target amount under this component. The total target amount for Ms. Lundgren for the Company financial performance component shall be 50% of her annual base salary as in effect on August 31, 2009, with
one-half of this target amount subject to each of the two financial performance targets and the maximum total bonus under these two targets not to exceed seven times her target amount under this component. 
 EPS. The EPS goal for fiscal 2009 shall be based on the Adjusted EPS for that year. Adjusted EPS for fiscal 2009
shall mean the Company’s diluted earnings per share for that fiscal year before extraordinary items and the cumulative effects of changes in accounting principles, if any, as set forth in the audited consolidated financial statements of the
Company and its subsidiaries for that fiscal year, adjusted to eliminate the impact of such other items as the Committee shall have specified at the time of establishment of the performance targets. 

 ROCE. The Company’s ROCE for fiscal 2009 shall be equal to the
Company’s Adjusted Net Income for fiscal 2009 divided by the Company’s Average Capital Employed for fiscal 2009. Adjusted Net Income for fiscal 2009 shall mean the amount determined by excluding interest expense from the Company’s
income before income taxes for fiscal 2009, recalculating the income tax expense for the year based on the adjusted income before income taxes, and then calculating net income (i) to eliminate the impact of such other items as the Committee
shall have specified at the time of establishment of the performance targets, and (ii) before extraordinary items and the cumulative effects of changes in accounting principles, if any, all in a manner consistent with the actual calculations
reflected in the audited consolidated financial statements of the Company and its subsidiaries for fiscal 2009. Average Capital Employed for fiscal 2009 shall mean the average of five (5) numbers consisting of the Capital Employed as of the
last day of the fiscal year and as of the last day of the four preceding fiscal quarters. Capital Employed as of any date shall mean the Company’s total assets (adjusted to eliminate the impact of such items as the Committee shall have
specified at the time of establishment of the performance targets) minus the sum of all of its liabilities other than debt for borrowed money and capital lease obligations, in each case as set forth on the consolidated balance sheet of the Company
and its subsidiaries as of the applicable date. 
 Change in Accounting Principle. If the Company
implements a change in accounting principle during fiscal 2009 either as a result of issuance of new accounting standards or otherwise, and the effect of the accounting change was not reflected in the Company’s business plan at the time of
approval of this award, then EPS and ROCE shall be adjusted to eliminate the impact of the change in accounting principle. 
 Management
Objectives 
 The second component of the annual bonus program is based on the achievement of the management objectives
determined by the Committee. The Committee shall establish the management objectives and specify the weight to be assigned to each objective. Following the end of the fiscal year, the Committee shall evaluate the performance of each participant
against the management objectives, determine the extent to which each objective has been met and determine the amount of the bonus to be paid. The target bonus amount for Mr. Carter for this component of the bonus program shall be 50% of his
annual base salary as in effect on August 31, 2009, and the maximum bonus under this component may not exceed three times this target amount. The target bonus amount for Ms. Lundgren for this component of the bonus program shall be 50% of
her annual base salary as in effect on August 31, 2009, and the maximum bonus under this component may not exceed three times this target amount. The actual amount of the bonuses under this component shall be determined by the Committee.

 General Provisions 
 Certification. Following the end of fiscal 2009 and prior to the payment of any bonus based on the Company financial performance targets, the Committee shall certify

 
in writing the level of attainment of each performance target for the year and the calculation of the bonus amounts for each participant. Payouts shall be made in cash to the participants as soon
as practicable after October 31, 2009 following certification by the Committee. 
 Conditions to
Payment. Subject to the terms of each participant’s employment agreement and change in control agreement, a participant must be employed by the Company on August 31, 2009 to receive this component of the annual bonus. 
 IRS Section 162(m). For Mr. Carter, the Company Financial Performance component of the annual bonus program
is implemented pursuant to the Executive Annual Bonus Plan, which was approved by shareholders in 2005, and is intended to qualify as performance-based compensation under Section 162(m) of the Internal Revenue Code. The EPS and ROCE performance
targets are among performance goals approved by shareholders in the Executive Annual Bonus Plan. For Ms. Lundgren, the Company Financial Performance component does not qualify as performance-based compensation under Section 162(m).

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