EXHIBIT 10.1
AMENDMENT TO EMPLOYMENT AGREEMENT
THIS AMENDMENT TO EMPLOYMENT AGREEMENT, effective as of August 10,
2005, by and between Xxxxxx X. Xxxxx (the "Executive") and Metal Management,
Inc., a Delaware corporation (the "Company"), amends the terms of employment of
the Executive by the Company, as set forth in the Employment Agreement by and
between the Executive and the Company dated as of July 1, 2001 (the "Employment
Agreement"), as follows:
1. Employment Location. Paragraph 1(a) of the Employment Agreement is
amended to add the following new sentence to the end thereof: "The
location of the Executive's principal place of work for the performance
of services hereunder shall be the Company's main office in Chicago,
Illinois."
2. Termination Without Cause. Paragraph 4(c)(i) of the Employment
Agreement, which generally addresses severance pay if the Executive is
terminated by the Company without Cause, is amended to add the
following new sentence between the current second and third sentences
of such paragraph: "For the duration of the Severance Period, to the
extent that the Executive or any of his dependents is eligible for and
elects COBRA continuation coverage (as described in section 4980B of
the Internal Revenue Code) under any Company group health plan, the
Company shall pay 100% of the premiums necessary to maintain such COBRA
continuation coverage."
3. Termination Without Cause Following a Change in Control. Paragraphs
4(c)(ii)(A) and (B) of the Employment Agreement, which address
severance pay and payment of COBRA continuation coverage if the
Executive is terminated by the Company without Cause during the
12-month period immediately following a Change in Control, are amended
to replace paragraph 4(c)(ii)(A) with the following, and to provide in
paragraph 4(c)(ii)(B) for payment of COBRA continuation coverage for up
to 18 months, rather than for up to the duration of the Severance
Period:
(A) In lieu of the payments to be made pursuant to paragraph
4(c)(i) above, an immediately payable lump sum amount equal to
two times Executive's Salary in effect immediately prior to
the Date of Termination.
4. Noncompetition Period. The introduction to paragraph 7 of the
Employment Agreement is amended to provide as follows:
Noncompetition. While he is employed by the Company, and for a
period after termination of the Executive's employment with the Company
for any reason equal to the applicable Severance Period, or in the
event that the Executive' Date of Termination under paragraph 4(c)
occurs during the 12-month period immediately following a Change in
Control, equal to 18 months:
5. Capitalized Terms. All capitalized terms in this Amendment not
otherwise defined in this Amendment shall have the respective meanings
of such terms as defined in the Employment Agreement.
6. Effect on Other Provisions. Except as amended by this Amendment, the
provisions of the Employment Agreement shall remain in full force and
effect.
METAL MANAGEMENT, INC.
By: /s/ XXXXXX X. XXXXXX
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Its: Chairman of the Board, Chief
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Executive Officer and President
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EXECUTIVE
/s/ XXXXXX X. XXXXX
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Xxxxxx X. Xxxxx
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