ENVIROSOURCE INC
FITZ LETTER AGREEMENT
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>exhibit.txt
<DESCRIPTION>FITZ LETTER AGREEMENT
<TEXT>

ENVIROSOURCE
                                                      Phone: 215. 956. 5500
                                                      Fax: 215. 956. 5429
                                                      Website: www.enso.net

                                                      1155 Business Center Drive
                                                      Horsham, PA 19044-3454

                                February 8, 2000


Mr. Richard J. Fitz
42 Linda Lane
Media, PA 19063

Dear Rick:

         This will  confirm a special  arrangement  between  you and the Company
resulting from your being a key employee and the Company's desire and commitment
to retain you as an employee on a going forward basis.

SEVERANCE PAY
-------------

Envirosource  will provide you with twelve (12) months  salary  continuation  at
your then current Envirosource salary, health and dental insurance  continuation
through  the  severance  pay  period  and  outplacement  services,  if  you  are
terminated by Envirosource at any time without just cause.  You will be required
to sign the Company's standard General Release in order to receive the severance
pay.

                                     Yours very truly,

                                     /s/ JOHN P. CARROLL
                                     John P. Carroll
                                     Vice President, Human Resources


Agreed:

/s/ RICHARD J. FITZ
-------------------
Richard J. Fitz
Controller

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</DOCUMENT>
