Exhibit 10.41

 

NOTE: AN ASTERISK (*) INDICATES THAT MATERIAL HAS BEEN OMITTED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT. SUCH MATERIAL HAS BEEN FILED SEPARATELY.

 

AGREEMENT

 

THIS AGREEMENT, effective on the 2nd day of September, 2003, with a term
commencing on the 1st day of January, 2004, by and between ISG Cleveland Inc., a
Delaware corporation having offices at 3060 Eggers Avenue, Cleveland, OH 44105
(hereinafter called “Buyer”) and Koppers Monessen Partners LP, a Delaware
limited partnership having offices at 436 Seventh Avenue, Pittsburgh,
Pennsylvania 15219-1800 (hereinafter called “Seller”).

 

WHEREAS, Buyer desires to purchase and Seller desires to sell Coke (as defined
herein), subject to the terms and conditions hereof.

 

NOW THEREFORE, in consideration of the mutual covenants herein contained and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and intending to be legally bound, Seller agrees to sell to
Buyer and Buyer agrees to purchase from Seller blast furnace coke (“Coke”), on
the terms and conditions set forth herein.

 

1. Term and Termination.

 

The term of this Agreement shall be from January 1, 2004 through December 31,
2006 (the “Initial Term”) and shall automatically renew for an additional period
of two years and thereafter for additional periods of one year each unless
terminated in accordance with the provisions of this Section 1 (the
aforementioned two-year renewal period and each subsequent one-year renewal
period thereafter hereinafter referred to individually and collectively as
“Renewal Periods”). This Agreement may be terminated: (i) by either party at the
end of the Initial Term or any Renewal Period in the event the parties have not,
at least six months prior to the expiration of that Initial Term or Renewal
Period, as applicable, agreed in writing on pricing for a subsequent Renewal
Period; or (ii) by either party upon a material breach of this Agreement by the
other party, which is not cured within thirty (30) days after notification in
writing thereof; provided, however, that the aforesaid thirty (30) day cure
period shall not apply to chronic failure to pay for product when due; or (iii)
by either party upon ten (10) days written notice in the event a Force Majeure
occurrence, as hereinafter defined, continues for a period exceeding six (6)
months; or (iv) automatically, if any applicable law prevents full compliance
with this Agreement by Seller and/or Buyer; or (v) by either party upon
commencement of voluntary or involuntary proceedings under any bankruptcy,
reorganization or similar laws of any jurisdiction by or against the other
party, or if any order shall be made or any resolution passed for the winding
up, liquidation or dissolution of the other party, or if a receiver be appointed
for it or its property, or if any of its goods or properties shall be taken in
execution.

 

2. Quantity.

 

During the Initial Term (and, as applicable, any Renewal Period) Seller shall
sell to Buyer and Buyer shall purchase from Seller, a minimum of 360,000 net
tons of Coke, said Coke to be taken in quantities of 30,000 net tons of Coke per
month; it being understood, however, that Buyer shall not be required to
purchase the foregoing minimum quantity of Coke if its total actual requirements
for Coke in the United States are less than 360,000 net tons of Coke; it being
further understood that Buyer may not purchase Coke from suppliers other than
Seller, if or to the extent such purchases would reduce Buyer’s obligation to
purchase the foregoing minimum quantities from Seller.

 

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3. Quality.

 

(a) The product to be purchased and sold under the terms and conditions of this
Agreement shall be screened metallurgical blast furnace coke produced at
Seller’s Monessen, Pennsylvania coke plant (“Plant”)meeting the specifications
set forth on Exhibit A attached hereto (the “Specifications”).

 

(b) If Buyer does not agree with Seller’s contracted laboratory’s sampling or
testing procedures or results, Buyer and Seller shall agree on another
laboratory to also analyze future shipments. If the results of such other
laboratory are within ASTM reproducible variances of Seller’s contracted
laboratory’s results, Buyer shall pay the costs of such other laboratory. If the
results of such other laboratory are not within ASTM reproducible variances of
Seller’s contracted laboratory’s results, Seller shall pay the costs of such
other laboratory. The results of such other laboratory shall govern except as
mutually agreed between Buyer and Seller. This will continue until Buyer is
satisfied with Seller’s contracted laboratory’s analyses and/or procedures.

 

(c) If Seller does not agree with Buyer’s laboratory’s sampling or testing
procedures or results, Buyer and Seller shall agree on another laboratory to
also analyze future shipments. If the results of such other laboratory are
within ASTM reproducible variances of Buyer’s lab’s results, Seller shall pay
the costs of such other laboratory. If the results of such other laboratory are
not within ASTM reproducible variances of Buyer’s laboratory’s results, Buyer
shall pay the costs of such other laboratory. The results of such other
laboratory shall govern except as mutually agreed between Buyer and Seller. This
will continue until Seller is satisfied with Buyer’s laboratory’s analyses
and/or procedures.

 

(d) All Coke that exceeds any applicable minimum or maximum amounts indicated in
the column entitled “Guarantee” as set forth on Exhibit A will be subject to
price decreases with respect to the Coke quality parameters set forth below, if
any. Price decreases will be based on weekly average analyses, calculated
according to the following formulas:

 

PARAMETER

   PRICE DECREASE FACTOR     

Sulfur

   If the weekly weighted average analysis for Sulfur is greater than the
“Guarantee” amount listed in the
Specifications set forth on Exhibit A, the Price shall decrease * for each *
percent exceeding said Guarantee Coke quality Specification, fractions pro rata
    

Ash

   If the weekly weighted average analysis for Ash is greater than the
“Guarantee” amount listed in the Specifications set forth on Exhibit A, the
Price shall decrease * per * for each percent exceeding said Guarantee Coke
quality Specification, fractions pro rata     

Stability

   If the weekly weighted average analysis for Stability is less than the
“Guarantee” amount listed in the Specifications set forth on Exhibit A, the
Price shall decrease * per * for each point below said Guarantee Coke quality
Specification, fractions pro rata     

 

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Size<3/4”

     If the weekly weighted average analysis for percent of Size <3/4” is
greater than *, the price shall decrease * per * for each percent above *,
fractions pro rata     

 

(e) Seller will generate a weekly quality summary within five (5) working days
after the end of each week. The quality summary will show, by day, the tons and
the test results for the Coke quality parameters listed above. Any price
decreases will be calculated and a weekly total shown. Seller, no later than ten
(10) working days after the end of each calendar month, will pay or credit Buyer
the amount of the price decreases reflected in the weekly quality summaries
generated during such calendar month.

 

4. Price.

 

(a) The price of Coke for 2004 shall be per net ton FOB railcar at Seller’s
Plant. Pricing for 2005 shall be the 2004 price plus an additional amount, not
to exceed * of the 2004 price, reflecting * . Pricing for 2006 shall be *.
Pricing for any Renewal Period, if applicable, shall be as mutually agreed in
writing by the parties at least six months before the expiration of the Initial
Term or prior Renewal Period, as applicable, as set forth in Section 1 hereof.
The foregoing pricing is based upon Coke moisture content of 3%.

 

(b) *

 

(c) *

 

(d) There shall an additional charge of * per net ton for all Coke stockpiled at
Seller’s Plant in excess of * net tons.

 

5. Samples, Tests and Weight.

 

(a) Seller shall sample and analyze Coke produced each day. Coke will be
analyzed for chemical and physical properties and size. Sampling and analysis
shall be done in accordance with Seller’s existing practices and consistent with
applicable ASTM Standards.

 

(b) Based upon aforesaid sampling and analysis, the daily analysis will be
transmitted to Buyer by facsimile (no hard copy to follow) to those identified
by Buyer, using a form similar to the form attached hereto as Exhibit B.

 

(c) Unless requested by Buyer before the expiration of such period, Seller shall
retain each sample for a minimum of thirty (30) business days after delivery of
the analysis. Each sample shall be appropriately labeled so as to identify the
applicable carrier, the loading date and sample preparation date. If and when
requested by Buyer, the samples shall be split one-third to Seller, one-third to
Buyer and one-third to an agreed third party laboratory and delivered to the
agreed third party laboratory immediately for testing.

 

(d) The weights used for determination of net tonnage of all shipments delivered
hereunder shall be determined from scales at Seller’s Plant, which shall be
certified annually to be in compliance with National Institute of Standards and
Testing specifications. In the event the

 

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Seller’s scales are not used for whatever reason, weights shall be determined
based upon the average of the relative weights of the previous five shipments,
or, in the alternative, Buyer may cause the shipment to be weighed using
certified scales at Seller’s expense. Seller shall, upon request, provide Buyer
with (i) evidence of certification of its scales as set forth above and (ii) all
relevant data used to determine the average weight in the event Seller’s scales
are not used as set forth above.

 

6. Payment.

 

Upon shipment of Coke, Seller shall invoice Buyer for all Coke sold to Buyer
pursuant to this Agreement. Invoices for the excess stockpiling fee set forth in
Section 4(d) shall be issued when Coke is removed from the stockpile. All
invoices hall be paid by Buyer on terms of net thirty (30) days from the date of
Seller’s invoice.

 

7. Warranties and Remedies.

 

(a) Seller warrants that (i) it has title to Coke sold and purchased pursuant to
this Agreement; (ii) Coke, at the time of sale, will be free from all liens,
security interests, and encumbrances; and (iii) all Coke sold to Buyer will
conform to the Specifications. SELLER MAKES NO OTHER WARRANTIES OF ANY KIND,
EITHER EXPRESSED OR IMPLIED, AND HEREBY DISCLAIMS ALL OTHER WARRANTIES,
INCLUDING ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE.

 

(b) In the event Coke exceeds any applicable minimum or maximum amounts
indicated in the column entitled “Reject” as set forth on Exhibit A
(“Non-Conforming Coke”):

 

  (i) Buyer may reject and refuse delivery of Non-Conforming Coke, in which case
Seller shall accept all risk of loss, damage, or destruction of such
Non-Conforming Coke. In the event Buyer rejects and refuses delivery of any
Non-Conforming Coke pursuant to this Section 7(b)(i), Buyer shall not be
required to pay Seller for such Non-Conforming Coke as set forth in Section 6,
Seller shall be required to remove such Non-Conforming Coke from Buyer’s
facility, and Seller shall be responsible for all removal costs connected
therewith Alternatively, if Seller does not promptly remove any Non-Conforming
Coke rejected by Buyer, Buyer may dispose of such Non-Conforming Coke at
Seller’s expense, including all freight charges incurred by Buyer, in accordance
with Seller’s written instructions.

 

  (ii)

Notwithstanding any actions taken by Buyer pursuant to Section 7(b)(i), if
Seller is unable to provide substitute conforming Coke in a timely fashion,
Buyer may purchase replacement Coke in the open market from one or more other
suppliers and invoice Seller for an amount equal to the difference between: (a)
all reasonable costs (including the cost of the Coke, administrative costs to
“cover” and excess freight) incurred by Buyer to purchase such replacement Coke
and (b) the aggregate price that Buyer would have paid to Seller for Seller’s
Coke had it been conforming. For the applicable contract year, the minimum
purchase requirement set forth in Section 2 shall be reduced by the total
quantity of Coke

 

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that Buyer is required to purchase from alternative supplier(s) in order to
ensure that Buyer can cover the shortfall created as a result of Seller’s
failure to supply conforming Coke.

 

(c) Except as otherwise specifically provided herein, neither party shall be
liable to the other for special, incidental, indirect, or consequential damages
or for “opportunity costs” arising from a party’s inability to perform under
this Agreement. “Opportunity costs” include, but are not limited to, lost
profits or revenues, processing costs, or any indirect costs a party may incur.

 

8. Delivery.

 

Seller agrees that it will, upon request of Buyer, maintain a stockpile of no
more than * net tons of Coke, it being understood that if a stockpile is to be
maintained that is more than * net tons, the provisions of Section 4(d) shall
apply. Title to and risk of loss of the Coke shall pass to Buyer at the point
where the Coke enters the truck tendered for loading by or on behalf of Buyer.

 

9. *

 

10. Force Majeure.

 

Neither party shall be liable for any delay in the shipment or acceptance of the
Coke, or for any other interruption, delay, loss, or damage which is incurred or
suffered as a result of a Force Majeure occurrence (as hereinafter defined), and
the obligations of the party subject to a Force Majeure occurrence shall be
excused and suspended during the period such Force Majeure remains in effect,
but only to the extent made necessary by such Force Majeure; provided that both
parties shall perform in accordance with this Agreement when any such
interfering causes shall have been removed. “Force Majeure” as used herein shall
mean a condition or cause beyond the reasonable control of a party, including
but not limited to acts of God, including floods, storms, earthquakes,
hurricanes, tornadoes, or other severe weather or climatic conditions; plant
shutdown; acts of public enemy, war, blockade, insurrection, or riot; fire,
wreck, washout or explosion; inability to obtain suitable materials from usual
sources of supply; strike, lockout, or labor dispute; embargoes; governmental
laws, orders or regulations; acts of governmental authority or compliance with
governmental laws and regulations; equipment failure; shortage of energy; or
circumstance beyond the parties’ control not enumerated in the foregoing which
reasonably shall prevent the affected party from performing its obligations or
making shipments in the usual and normal course of its business; provided,
however, that the duty to pay for Coke already shipped shall not be relieved by
the existence of an event of Force Majeure. It is agreed that each party shall
use due diligence, good faith, and all reasonable efforts to remove such Force
Majeure conditions, but that no party shall have to settle a strike contrary to
its best interests.

 

11. Notices.

 

All notices, certificates, consents or other communications required or
permitted to be given or made under this Agreement shall be in writing and shall
be deemed properly served (i) if by hand delivery, telecopy or other facsimile
transmission, on the day and at the time on which delivered to the intended
recipient at the address or telecopier number set forth in this

 

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Agreement, provided, however, in the case of telecopy or facsimile transmission,
said notices, certificates, consents or other communications must also be sent
the same day via certified or registered mail delivery; (ii) if sent by mail, on
the third business day after the day on which deposited in certified or
registered mail, postage prepaid, return receipt requested, addressed to the
intended recipient at its address set forth in this Agreement; or (iii) if by
Federal Express or other reputable express mail service for overnight delivery,
on the next business day after delivery to such express mail service, addressed
to the intended recipient at its address set forth in this Agreement. All
notices required or permitted to be served upon either party hereunder will be
directed to:

 

To:   ISG Cleveland Inc.         3060 Eggers Avenue         Cleveland, OH 44105
        Attention: Paul E. DeMarco         Phone: 216-429-7564         Fax:
412-429-6824               To:   Koppers Monessen Partners LP         436
Seventh Avenue         Pittsburgh, PA 15219-1800         Attention: Drew H.
Bachman         Phone: 412-227-2280         Fax: 412-227-2202    

 

12. Binding Effect.

 

This Agreement shall inure to the benefit of and shall be binding upon Buyer and
Seller and their respective successors and permitted assigns, subject, however,
to the limitations contained herein. No provision hereof shall, however, be
construed to impose any personal or pecuniary liability upon any officer or
employee of Buyer or Seller.

 

13. Waiver.

 

To the extent permitted by law, no delay or omission to exercise any right or
power accruing upon any event of default shall impair any such right or power or
shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be expedient. Any such waiver
shall be in writing and signed by the party against whom it is to operate. In
order to entitle either party to exercise any remedy hereunder, it shall not be
necessary to give any notice other than as may be required in this Agreement. If
any covenant contained in this Agreement should be breached by either party and
thereafter waived by the other party, such waiver shall be limited to the
particular breach so waived and shall not be deemed to waive any other breach
under this Agreement.

 

14. Severability.

 

If any term or provision of this Agreement or the application thereof to any
party or circumstance be judged invalid or unenforceable to any extent, the
remainder of this Agreement and the application of such terms and provisions to
persons or circumstances other than those to

 

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which it is held invalid or unenforceable shall not be affected thereby, except
as it might be necessary to effectuate the intent of the parties, and each
provision of this Agreement shall be valid and be enforceable to the fullest
extent permitted by law.

 

15. Amendments.

 

This Agreement may not be amended or altered except by the written agreement of
Buyer and Seller. Unless otherwise explicitly provided therein, no such
amendment shall be deemed to extend to any prior or subsequent matter, whether
or not similar to the subject matter of such amendment. Any printed term
contained in any purchase order or other form or document used by Buyer to order
the Coke or in any acknowledgment or other form or other document used by Seller
shall be null and void and of no force and effect, and this Agreement will take
precedence over and supercede any such terms, unless such terms have been agreed
to in writing by both Buyer and Seller.

 

16. Execution in Counterparts.

 

This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original and all of which shall constitute but one and the same
instrument.

 

17. Captions.

 

The captions or headings in this Agreement are for convenience only and in no
way define, limit or describe the scope or intent of any provisions of this
Agreement.

 

18. Entire Agreement; Third Party Beneficiaries.

 

This Agreement constitutes the entire agreement between the parties hereto with
respect to the subject matter hereof and supersedes all prior oral or written
agreements and understandings between the parties relating to the subject matter
hereof. This Agreement is not intended to confer upon any person other than the
parties hereto any rights or remedies hereunder.

 

19. Interpretation.

 

If any provision in any Exhibit provided with the original executed copy of this
Agreement or as amended and signed by both parties, is inconsistent with the
terms of the body of this Agreement, the provision in the Exhibit shall be
controlling. All words used in this Agreement will be construed to be of such
gender or number as the circumstances require. Unless otherwise expressly
provided, the word “including” does not limit the preceding words or terms.

 

20. Assignment.

 

Neither Buyer nor Seller shall assign its rights nor delegate the performance of
its duties under this Agreement without the prior written consent of the other
party, which consent shall not be unreasonably withheld or delayed.

 

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21. Arbitration of Disputes.

 

Any disagreement or dispute that may arise with respect to the interpretation or
applications of this Agreement, or the breach thereof, shall be exclusively
settled by arbitration in accordance with the Rules of the American Arbitration
Association. Said arbitration shall be held in Cleveland, Ohio, and be conducted
in the English language. Judgment upon the award rendered by the arbitrator or
arbitrators may be entered into in any court having jurisdiction thereof. Each
party shall be responsible for its own attorneys’ fees, costs and expenses.

 

22. Governing Law.

 

All questions with respect to the construction of this Agreement and the rights
and liabilities of the parties hereunder shall be determined in accordance with
the laws and regulations of the State of Ohio, United States of America, without
regard to the conflicts of law provisions thereof that would cause the law of
another jurisdiction to apply.

 

IN WITNESS WHEREOF, this Agreement has been executed by the parties by their
respective duly authorized representatives in multiple originals, to be
effective as of                              , 2003, with the Initial Term
hereof commencing on the first day of January 2004 as specified in Section 1
hereof.

 

ISG CLEVELAND INC. By:      

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Title:

     

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Date:

     

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KOPPERS MONESSEN PARTNERS LP By:      

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Title:

     

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Date:

     

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EXHIBIT A

 

Coke Parameters

 

     Typical

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   Guarantee

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   Reject

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Stability

              

Hardness

              

Moisture

              

Volatile matter

              

Ash

              

Sulfur

              

Fixed carbon

              

CSR

              

Phosphorus

              

Alkali

               Size                     Typical

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   Guarantee

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   Reject

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  +4”

              

  +2”

              

  +1”

              

+3/4”

              

 -3/4”

              

 

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EXHIBIT B

 

Koppers Monessen Partners LPx

Tel: (724) 684-1000

Fax: (724) 684-1011

 

REPORT OF COKE ANALYSIS

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DATE:                     

 

COKE CHEMISTRY Moisture   Ash   Sulfur   Vol Matter   Fixed Carbon __________  
__________   __________   __________   __________ COKE SIZE +4 Inch   +3 Inch  
+2 Inch   +1 Inch     __________   __________   __________   __________     +
3/4 Inch   -3/4 Inch   Stability   Hardness     __________   __________  
__________   __________    

 

 

Signature:                                         

 

Verified by:                                         

 

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