EX-10.(b)






EXHIBIT 10(b)




SEVERANCE AGREEMENT




THIS SEVERANCE AGREEMENT (this “Agreement”), dated as of this      day of      is made
and entered by and between Cliffs Natural Resources Inc., an Ohio corporation (the “Company”), and
     (the “Executive”).



WITNESSETH:




WHEREAS, the Executive is a key employee of the Company or one or more of its Subsidiaries who
is expected to make major contributions to the short- and long-term profitability, growth and
financial strength of the Company;



WHEREAS, the Company recognizes that, as is the case for most publicly held companies, the
possibility of a Change in Control (as defined below) exists;



WHEREAS, the Company desires to assure itself of both present and future continuity of
management and desires to establish certain minimum severance benefits for certain of its
executives, including the Executive, applicable in the event of a Change in Control;



WHEREAS, the Company wishes to ensure that its executives are not distracted from discharging
their duties in respect of a proposed or actual transaction involving a Change in Control; and



WHEREAS, the Company desires to provide additional inducement for the Executive to continue to
remain in the employ of the Company.



NOW, THEREFORE, the Company and the Executive agree as follows:




	1.	 	Certain Defined Terms. In addition to terms defined elsewhere herein, the following
terms have the following meanings when used in this Agreement with initial capital letters:






	 	(a)	 	“Base Pay” means the Executive’s annual base salary rate as in effect from
time to time.






	 	(b)	 	“Board” means the Board of Directors of the Company.






	 	(c)	 	“Cause” means that, prior to any termination pursuant to Section 3(b), the
Executive shall have committed:






	 	(i)	 	and been convicted of a criminal violation involving fraud,
embezzlement or theft in connection with his duties or in the course of his
employment with the Company or any Subsidiary;






	 	(ii)	 	intentional wrongful damage to property of the Company or any
Subsidiary;






	 	(iii)	 	intentional wrongful disclosure of secret processes or
confidential information of the Company or any Subsidiary; or






	 	(iv)	 	intentional wrongful engagement in any Competitive Activity;






and any such act shall have been demonstrably and materially harmful to the Company.
For purposes of this Agreement, no act or failure to act on the part of the
Executive shall be deemed “intentional” if it was due primarily to an error in
judgment or negligence, but shall be deemed “intentional” only if done or omitted to
be done by the Executive not in good faith and without reasonable belief that the
Executive’s action or omission was in the best interest of the Company.
Notwithstanding the foregoing, the Executive shall not be deemed to have been
terminated for “Cause” hereunder unless and until there shall have been delivered to
the Executive a copy of a resolution duly adopted by the affirmative vote of not
less than three quarters of the Board then in office at a meeting of the Board
called and held for such purpose, after reasonable notice to the Executive and an
opportunity for the Executive, together with the Executive’s counsel (if the
Executive chooses to have counsel present at such meeting), to be heard before the
Board, finding that, in the good faith opinion of the Board, the Executive had
committed an act constituting “Cause” as herein defined and specifying the
particulars thereof in detail. Nothing herein will limit the right of the Executive
or his beneficiaries to contest the validity or propriety of any such determination.




	 	(d)	 	“Change in Control” means the occurrence during the Term of a “Change in
Control” as defined in the 2007 Incentive Equity Plan of the Company approved by
Shareholders at the 2007 Annual Meeting of Shareholders, as amended from time to time
thereafter.






	 	(e)	 	“Code” shall mean the Internal Revenue Code of 1986 and regulations
thereunder, both as amended from time to time.






	 	(f)	 	“Competitive Activity” means the Executive’s participation, without the
written consent of an officer of the Company, in the management of any business
enterprise if such enterprise engages in substantial and direct competition with the
Company and such enterprise’s sales of any product or service competitive with any
product or service of the Company amounted to 10% of such enterprise’s net sales for
its most recently completed fiscal year and if the Company’s net sales of said
product or service amounted to 10% of the Company’s net sales for its most recently
completed fiscal year. “Competitive Activity” will not include (i) the mere
ownership of securities in any such enterprise and the exercise of rights appurtenant
thereto or (ii) participation in the management of any such enterprise other than in
connection with the competitive operations of such enterprise.






	 	(g)	 	“Controlled Group” means the Company and all other persons or entities that
would be considered a single employer under Sections 414(b) and 414(c) of the Code.






	 	(h)	 	“Continuation Period” means the      year period commencing on the
Executive’s Separation from Service.






	 	(i)	 	“Employee Benefits” means the perquisites, benefits and service credit for
benefits as provided under any and all employee retirement income and welfare benefit
policies, plans, programs or arrangements in which Executive is entitled to
participate, including without limitation any stock option, performance share,
performance unit, stock purchase, stock appreciation, savings, pension, supplemental
executive retirement, or other retirement income or welfare benefit, deferred
compensation, incentive compensation, group or other life, health, medical/hospital
or other insurance (whether funded by actual insurance or self-insured by the Company
or a Subsidiary), disability, salary continuation, expense reimbursement and other
employee benefit policies, plans, programs or arrangements that may now exist or any
equivalent successor policies, plans, programs or arrangements that may be adopted
hereafter by the Company or a Subsidiary, providing perquisites, benefits and service
credit for benefits at least as great in value in the aggregate as are payable
thereunder prior to a Change in Control.






	 	(j)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended.






	 	(k)	 	“Good Reason” means the initial occurrence, without the Executive’s
consent, of one or more of the following events:






(i) a material diminution in his base pay;




(ii) a material diminution in his authority, duties or responsibilities;




(iii) a material change in the geographic location at which he must perform
services;




(iv) a reduction in his Incentive Pay opportunity which results in a material
diminution of the Executive’s potential total compensation; and




(v) any other action or inaction that constitutes a material breach by his employer
of the employment agreement under which he provides services;




provided, however, that “Good Reason” shall not be deemed to exist unless:




	 	(A)	 	the Executive has provided notice to his employer of the
existence of one or more of the conditions listed in (i) through (v) above
within 90 days after the initial occurrence of such condition or conditions;
and






	 	(B)	 	such condition or conditions have not been cured by his
employer within 30 days after receipt of such notice.






	 	(l)	 	“Incentive Pay” means an annual bonus, incentive or other payment of
compensation, in addition to Base Pay, made or to be made in regard to services
rendered in any year or other period pursuant to any bonus, incentive,
profit-sharing, performance, discretionary pay or similar agreement, policy, plan,
program or arrangement (whether or not funded) of the Company or a Subsidiary, or any
successor thereto.






	 	(m)	 	“Industry Service” means professionally related service, prior to his
employment by the Company or a Subsidiary, by the Executive as an employee within the
iron, steel and mining industries or service within an industry to which such
Executive’s position with the Company relates. The Executive shall be given credit
for one year of Industry Service for every two years of service with the Company, as
designated in writing by, or in minutes of the actions of, the Compensation and
Organization Committee of the Board, and such years of credited Industry Service
shall be defined as “Credited Years of Industry Service.”






	 	(n)	 	“Parent” shall mean the entity that owns 50% of the total fair market value and
total voting power of the Controlled Group member that employs the Executive.






	 	(o)	 	“Protection Period” means the period of time commencing on the date of the
first occurrence of a Change in Control and continuing until the earlier of (i) the
second anniversary of the occurrence of the Change in Control, or (ii) the Executive’s
death.






	 	(p)	 	“Retirement Plans” means the retirement income, supplemental executive
retirement, excess benefits and retiree medical, life and similar benefit plans
providing retirement perquisites, benefits and service credit for benefits at least as
great in value in the aggregate as are payable thereunder prior to a Change in Control.






	 	(q)	 	“Separation from Service” means the Executive’s separation from service within
the meaning of Section 409A of the Code with the Company and all members of the
Controlled Group, for any reason, including without limitation, quit, discharge, or
retirement, or a leave of absence (including military leave, sick leave, or other bona
fide leave of absence such as temporary employment by the government if the period of
such leave exceeds the greater of six months or the period for which the Participant’s
right to reemployment is provided either by statute or by contract). “Separation
from Service” also means the permanent decrease in the Executive’s service for the
Company and all Controlled Group members to a level that is no more than 20% of its
prior level. For this purposes, whether a Separation from Service has occurred is
determined based on whether it is reasonably anticipated that no further services as an
employee will be performed by the Executive after a certain date or that the level of
bona fide services the Executive will perform after such date (whether as an employee
or as an independent contractor) would permanently decrease to no more than 20% of the
average level of bona fide services performed (whether as an employee or an independent
contractor) over the immediately preceding 36-month period (or the full period of
services if the Executive has been providing services less than 36 months).






	 	(r)	 	“Severance Compensation” means the severance pay and other benefits provided by
Sections 4(a) and (b).






	 	(s)	 	“Subsidiary” means an entity in which the Company directly or indirectly
beneficially owns 50% or more of the outstanding capital or profits interests or Voting
Stock.






	 	(t)	 	“Supplemental Retirement Plan” or “SRP” means the Cleveland-Cliffs Inc
Supplemental Retirement Benefit Plan (as Amended and Restated as of January 1, 2001),
as it may be amended prior to a Change in Control, and modified as provided in Annex A,
Paragraph (5).






	 	(u)	 	“Term” means the period commencing as of the date hereof and expiring as of the
later of (i) the close of business on December 31, 2011, or (ii) the expiration of the
Protection Period; provided, however, that (A) on January 1, 2012, January 1, 2015 and
each third January 1 thereafter, the term of this Agreement will automatically be
extended for an additional three years unless, not later than September 30 of the
immediately preceding year, the Company or the Executive shall have given notice that
it or the Executive, as the case may be, does not wish to have the Term extended and
(B) subject to the last sentence of Section 11, if, prior to a Change in Control, the
Executive ceases for any reason to be an Officer or Mine Manager of the Company and any
Subsidiary, thereupon without further action the Term shall be deemed to have expired
and this Agreement will immediately terminate and be of no further effect.






	 	(v)	 	“Voting Stock” means securities entitled to vote generally in the election of
directors.






	2.	 	Operation of Agreement. This Agreement will be effective and binding immediately
upon its execution, but, anything in this Agreement to the contrary notwithstanding, this
Agreement will not be operative unless and until a Change in Control occurs. Upon the
occurrence of a Change in Control at any time during the Term, without further action, this
Agreement shall become immediately operative, including without limitation, the last sentence
of Section 11 notwithstanding that the Term may have theretofore terminated.






	 	3.	 	Termination Following a Change in Control.(a) (a) In the event of
the occurrence of a Change in Control, the Executive’s employment may be terminated
by the Company or a Subsidiary during the Protection Period and the Executive shall
be entitled to the benefits provided by Section 4 unless such termination is the
result of the occurrence of one or more of the following events:






	 	(i)	 	The Executive’s death;






	 	(ii)	 	If the Executive becomes permanently disabled within the
meaning of, and begins actually to receive disability benefits pursuant to, the
long-term disability plan in effect for, or applicable to, the Executive
immediately prior to the Change in Control; or






	 	(iii)	 	Cause.






If, during the Protection Period, the Executive’s employment is terminated by the
Company or any Subsidiary other than pursuant to Section 3(a)(i), 3(a)(ii) or
3(a)(iii), the Executive will be entitled to the benefits provided by Section 4
hereof.




	 	(b)	 	The Executive may terminate employment with the Company and any Subsidiary for
Good Reason during the Protection Period with the right to Severance Compensation as
provided in Section 4.






	 	(c)	 	A termination by the Company pursuant to Section 3(a) or by the Executive
pursuant to Section 3(b) will not affect any rights that the Executive may have
pursuant to any agreement, policy, plan, program or arrangement of the Company or
Subsidiary providing Employee Benefits, which rights shall be governed by the terms
thereof, except for any rights to severance compensation to which the Executive may be
entitled upon Separation from Service under any severance pay policy, plan, program or
arrangement of the Company, which rights shall, during the Protection Period, be
superseded by this Agreement.






	 	4.	 	Severance Compensation.(a) (a) If, following the occurrence of a
Change in Control, the Company or Subsidiary terminates the Executive’s employment
during the Protection Period other than pursuant to Section 3(a)(i), 3(a)(ii) or
3(a)(iii), or if the Executive terminates his employment pursuant to Section 3(b),
the Company will pay to the Executive the amounts described in Paragraphs 1 and 8 of
Annex A by the later of ten (10) business days after the Executive’s Separation from
Service or the end of the seven (7) day revocation period described in Paragraph 5(d)
of Exhibit A, will pay to the Executive the amounts described in Paragraphs 5 and 6
of Annex A within five (5) business days after the start of the seventh month
following his Separation from Service, will continue to provide to the Executive the
benefits described in Paragraphs 2 and 3 of Annex A for the periods described
therein, and will provide to the Executive the additional benefits described in
Paragraphs 4, 9 and 10 of Annex A.






	 	(b)	 	Without limiting the rights of the Executive at law or in equity, if the
Company fails to make any payment or provide any benefit required to be made or
provided hereunder on a timely basis, the Company will pay interest on the amount or
value thereof at an annualized rate of interest equal to the so-called composite
“prime rate” as quoted from time to time during the relevant period in the Midwest
Edition of The Wall Street Journal, plus 2%. Such interest will be payable
as it accrues on demand. Any change in such prime rate will be effective on and as
of the date of such change.






	 	(c)	 	Notwithstanding any provision of this Agreement to the contrary, the
parties’ respective rights and obligations under this Section 4 and under Sections 5,
6, 7, 8, 9, 10, the last sentence of Section 11, and Paragraph (5) of Annex A will
survive any termination or expiration of this Agreement or the Executive’s Separation
from Service following a Change in Control for any reason whatsoever.






	 	(d)	 	In the event that there is no provision in any applicable policy, plan,
program or agreement dealing with the occurrence of a Change in Control, all equity
incentive grants and awards held by the Executive shall become fully vested and
immediately payable in cash on the date of the Change in Control valued at target on
such date and all stock options held by the Executive shall become fully exercisable
on the date of the Change in Control.






	 	5.	 	Certain Additional Payments by the Company.(a) (a) Anything in
this Agreement to the contrary notwithstanding, in the event that this Agreement
shall become operative and it shall be determined (as hereafter provided) that any
payment (other than the Gross-Up payments provided for in this Section 5) or
distribution by the Company or any of its affiliates to or for the benefit of the
Executive, whether paid or payable or distributed or distributable pursuant to the
terms of this Agreement or otherwise pursuant to or by reason of any other agreement,
policy, plan, program or arrangement, including without limitation any stock option,
performance share, performance unit, stock appreciation right or similar right, or
the lapse or termination of any restriction on or the vesting or exercisability of
any of the foregoing (a “Payment”), would be subject to the excise tax imposed by
Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) (or any
successor provision thereto) by reason of being considered “contingent on a change in
ownership or control” of the Company, within the meaning of Section 280G of the Code
(or any successor provision thereto) or to any similar tax imposed by state or local
law, or any interest or penalties with respect to such tax (such tax or taxes,
together with any such interest and penalties, being hereinafter collectively
referred to as the “Excise Tax”), then the Executive shall be entitled to receive an
additional payment or payments (collectively, a “Gross-Up Payment”); provided,
however, that no Gross-up Payment shall be made with respect to the Excise Tax, if
any, attributable to (i) any incentive stock option, as defined by Section 422 of the
Code (“ISO”) granted prior to the execution of this Agreement, or (ii) any stock
appreciation or similar right, whether or not limited, granted in tandem with any ISO
described in clause (i). The Gross-Up Payment shall be in an amount such that, after
payment by the Executive of all taxes (including any interest or penalties imposed
with respect to such taxes), including any Excise Tax imposed upon the Gross-Up
Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise
Tax imposed upon the Payment.






	 	(b)	 	Subject to the provisions of Section 5(f), all determinations required to
be made under this Section 5, including whether an Excise Tax is payable by the
Executive and the amount of such Excise Tax and whether a Gross-Up Payment is
required to be paid by the Company to the Executive and the amount of such Gross-Up
Payment, if any, shall be made by a nationally recognized accounting firm (the
“Accounting Firm”) selected by the Executive in his sole discretion. The Executive
shall direct the Accounting Firm to submit its determination and detailed supporting
calculations to both the Company and the Executive within 30 calendar days after the
Executive’s Separation from Service, if applicable, and any such other time or times
as may be requested by the Company or the Executive during the period of the statute
of limitations, including extensions, with respect to the payment of any Excise Tax.
If the Accounting Firm determines that any Excise Tax is payable by the Executive,
the Company shall pay the required Gross-Up Payment to the Executive within five
business days after receipt of such determination and calculations with respect to
any Payment to the Executive. If the Accounting Firm determines that no Excise Tax
is payable by the Executive, it shall, at the same time as it makes such
determination, furnish the Company and the Executive an opinion that the Executive
has substantial authority not to report any Excise Tax on his federal, state or local
income or other tax return. As a result of the uncertainty in the application of
Section 4999 of the Code (or any successor provision thereto) and the possibility of
similar uncertainty regarding applicable state or local tax law at the time of any
determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments
which will not have been made by the Company should have been made (an
“Underpayment”), consistent with the calculations required to be made hereunder. In
the event that the Company exhausts or fails to pursue its remedies pursuant to
Section 5(f) and the Executive thereafter is required to make a payment of any Excise
Tax, the Executive shall direct the Accounting Firm to determine the amount of the
Underpayment that has occurred and to submit its determination and detailed
supporting calculations to both the Company and the Executive as promptly as
possible. Any such Underpayment shall be promptly paid by the Company to, or for the
benefit of, the Executive within five business days after receipt of such
determination and calculations.






	 	(c)	 	The Company and the Executive shall each provide the Accounting Firm access
to and copies of any books, records and documents in the possession of the Company or
the Executive, as the case may be, reasonably requested by the Accounting Firm, and
otherwise cooperate with the Accounting Firm in connection with the preparation and
issuance of the determinations and calculations contemplated by Section 5(b). Any
determination by the Accounting Firm as to the amount of the Gross-Up Payment shall
be binding upon the Company and the Executive.






	 	(d)	 	The federal, state and local income or other tax returns filed by the
Executive shall be prepared and filed on a consistent basis with the determination of
the Accounting Firm with respect to the Excise Tax payable by the Executive. The
Executive shall make proper payment of the amount of any Excise Payment, and at the
request of the Company, provide to the Company true and correct copies (with any
amendments) of his federal income tax return as filed with the Internal Revenue
Service and corresponding state and local tax returns, if relevant, as filed with the
applicable taxing authority, and such other documents reasonably requested by the
Company, evidencing such payment. If prior to the filing of the Executive’s federal
income tax return, or corresponding state or local tax return, if relevant, the
Accounting Firm determines that the amount of the Gross-Up Payment should be reduced,
the Executive shall within five business days pay to the Company the amount of such
reduction.






	 	(e)	 	The fees and expenses of the Accounting Firm for its services in connection
with the determinations and calculations contemplated by Section 5(b) shall be borne
by the Company; if such fees and expenses are initially paid by the Executive, the
Company shall reimburse the Executive the full amount of such fees and expenses
within five business days after receipt from the Executive of a statement therefor
and reasonable evidence of his payment thereof, provided that such evidence is
submitted by the Executive at least five days before the end of the taxable year of
the Executive following the year in which the services of the Accounting Firm are
performed.






	 	(f)	 	The Executive shall notify the Company in writing of any claim by the
Internal Revenue Service or any other taxing authority that, if successful, would
require the payment by the Company of a Gross-Up Payment. Such notification shall be
given as promptly as practicable but no later than 10 business days after the
Executive actually receives notice of such claim and the Executive shall further
apprise the Company of the nature of such claim and the date on which such claim is
requested to be paid (in each case, to the extent known by the Executive). The
Executive shall not pay such claim prior to the earlier of (i) the expiration of the
30-calendar-day period following the date on which he gives such notice to the
Company and (ii) the date that any payment of amount with respect to such claim is
due. If the Company notifies the Executive in writing prior to the expiration of
such period that it desires to contest such claim, the Executive shall:






	 	(i)	 	provide the Company with any written records or documents in
his possession relating to such claim reasonably requested by the Company;






	 	(ii)	 	take such action in connection with contesting such claim as
the Company shall reasonably request in writing from time to time, including
without limitation accepting legal representation with respect to such claim by
an attorney competent in respect of the subject matter and reasonably selected
by the Company;






	 	(iii)	 	cooperate with the Company in good faith in order effectively
to contest such claim; and






	 	(iv)	 	permit the Company to participate in any proceedings relating
to such claim;






provided, however, that the Company shall bear and pay directly all
costs and expenses (including interest and penalties) incurred in connection with
such contest and shall indemnify and hold harmless the Executive, on an after-tax
basis, for and against any Excise Tax or income tax, including interest and
penalties with respect thereto, imposed as a result of such representation and
payment of costs and expenses. Without limiting the foregoing provisions of this
Section 5(f), the Company shall control all proceedings taken in connection with the
contest of any claim contemplated by this Section 5(f) and, at its sole option, may
pursue or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim (provided, however,
that the Executive may participate therein at his own cost and expense) and may, at
its option, either direct the Executive to pay the tax claimed and sue for a refund
or contest the claim in any permissible manner, and the Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in a
court of initial jurisdiction and in one or more appellate courts, as the Company
shall determine; provided, however, that if the Company directs the
Executive to pay the tax claimed and sue for a refund, the Company shall advance the
amount of such payment to the Executive on an interest-free basis and shall
indemnify and hold the Executive harmless, on an after-tax basis, from any Excise
Tax or income or other tax, including interest or penalties with respect thereto,
imposed with respect to such advance; and provided further,
however, that any extension of the statute of limitations relating to
payment of taxes for the taxable year of the Executive with respect to which the
contested amount is claimed to be due is limited solely to such contested amount.
Furthermore, the Company’s control of any such contested claim shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and the
Executive shall be entitled to settle or contest, as the case may be, any other
issue raised by the Internal Revenue Service or any other taxing authority.




	 	(g)	 	If, after the receipt by the Executive of an amount advanced by the Company
pursuant to Section 5(f), the Executive receives any refund with respect to such
claim, the Executive shall (subject to the Company’s complying with the requirements
of Section 5(f)) promptly pay to the Company the amount of such refund (together with
any interest paid or credited thereon after any taxes applicable thereto). If, after
the receipt by the Executive of an amount advanced by the Company pursuant to Section
5(f), a determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in writing
of its intent to contest such denial or refund prior to the expiration of 30 calendar
days after such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of any such advance shall offset, to the extent
thereof, the amount of Gross-Up Payment required to be paid by the Company to the
Executive pursuant to this Section 5.






	 	(h)	 	The provisions of subsections (a) to (g) of this Section 5 shall control
the timing of the payment of the Gross-up Payment and specifically provide that such
Payment shall be made prior to the end of the tax year of the Executive next
following the tax year when the Excise Tax is paid to the government which is the
date specified in Treasury Department Regulations Section 1.409A-3(i)(1)(v). In the
unlikely event that the Gross-up Payment might otherwise be paid after the end of
such tax year, the Gross-Up Payment shall be accelerated so that it is paid no later
than the last day of the tax year of the Executive next following the tax year when
the Excise Tax is paid to the government.






	6.	 	No Mitigation Obligation. The Company hereby acknowledges that it will be difficult
and may be impossible for the Executive to find reasonably comparable employment following his
Separation from Service and that the non-competition covenant contained in Section 8 will
further limit the employment opportunities for the Executive. In addition, the Company
acknowledges that its severance pay plans applicable in general to its salaried employees do
not provide for mitigation, offset or reduction of any severance payment received thereunder.
Accordingly, the payment of the Severance Compensation by the Company to the Executive in
accordance with the terms of this Agreement is hereby acknowledged by the Company to be
reasonable, and the Executive will not be required to mitigate the amount of any payment
provided for in this Agreement by seeking other employment or otherwise, nor will any profits,
income, earnings or other benefits from any source whatsoever create any mitigation, offset,
reduction or any other obligation on the part of the Executive hereunder or otherwise, except
as expressly provided in Paragraphs (2) and (3) of Annex A.






	7.	 	Payments not Considered for Other Benefits, etc. Payments made pursuant to paragraphs
(1) and (6) of Annex A will be counted for purposes of determining benefits under the SRP, but
will not be counted for purposes of any other employee benefit plan. All other payments under
this Agreement, including the Gross-up Payment, legal fee and expense reimbursement provided
under Section 8 and reimbursements for outplacement counseling provided under Paragraph 7 of
Annex A will not be counted for any purpose under any employee benefit plan of the Company.
Such payments and payments of severance pay will not be made from any benefit plan funds, and
shall constitute an unfunded unsecured obligation of the Company.






8. Legal Fees and Expenses.(a) (a) It is the intent of the Company that the
Executive not be required to incur legal fees and the related expenses associated with the
interpretation, enforcement or defense of Executive’s rights under this Agreement by
litigation or otherwise because the cost and expense thereof would substantially detract
from the benefits intended to be extended to the Executive hereunder. Accordingly, if it
should appear to the Executive that the Company has failed to comply with any of its
obligations under this Agreement or in the event that the Company or any other person takes
or threatens to take any action to declare this Agreement void or unenforceable, or
institutes any litigation or other action or proceeding designed to deny, or to recover
from, the Executive the benefits provided or intended to be provided to the Executive
hereunder, the Company irrevocably authorizes the Executive from time to time to retain
counsel of Executive’s choice, at the expense of the Company as hereafter provided, to
advise and represent the Executive in connection with any such interpretation, enforcement
or defense, including without limitation the initiation or defense of any litigation or
other legal action, whether by or against the Company or any Director, officer, stockholder
or other person affiliated with the Company, in any jurisdiction. Notwithstanding any
existing or prior attorney-client relationship between the Company and such counsel, the
Company irrevocably consents to the Executive’s entering into an attorney-client
relationship with such counsel, and in that connection the Company and the Executive agree
that a confidential relationship shall exist between the Executive and such counsel.
Without respect to whether the Executive prevails, in whole or in part, in connection with
any of the foregoing, the Company will pay and be solely financially responsible for any and
all attorneys’ and related fees and expenses incurred by the Executive in connection with
any of the foregoing, which fees shall be paid within five days of the day the Executive
submits to the Company an invoice from such counsel for the fees and expenses, which invoice
shall be submitted no later than five days prior to the end of the taxable year of the
Executive following the year in which the expenses were incurred so that such fees shall be
paid within the period specified in Treasury Department Regulations Section
1.409A-3(i)(1)(v).




	 	(b)	 	To ensure that the provisions of this Agreement can be enforced by the
Executive, certain trust arrangements (“Trusts”) have been established between
KeyBank Company of Ohio, N.A., as Trustee (“Trustee”), and the Company. Each of
Trust Agreement No. 1 (Amended and Restated Effective June 1, 1997, as amended)
(“Trust Agreement No. 1”), Trust Agreement No. 2 (Amended and Restated Effective
October 15, 2002, as amended) (“Trust Agreement No. 2”), and Trust Agreement No. 7
dated April 9, 1991, as amended (“Trust Agreement No. 7”), as it may be subsequently
amended and/or restated, between the Trustee and the Company, sets forth the terms
and conditions relating to payment from Trust Agreement No. 1 of compensation,
pension benefits and other benefits pursuant to the Agreement owed by the Company,
payment from Trust Agreement No. 2 for attorneys’ fees and related fees and expenses
pursuant to Section 8(a) hereof owed by the Company, and payment from Trust Agreement
No. 7 of pension benefits owed by the Company. Executive shall make demand on the
Company for any payments due Executive pursuant to Section 8(a) hereof prior to
making demand therefor on the Trustee under Trust Agreement No. 2.






	 	(c)	 	Upon the earlier to occur of (i) a Change in Control or (ii) a declaration
by the Board that a Change Control is imminent, the Company shall promptly to the
extent it has not previously done so, and in any event within five (5) business days:






	 	(A)	 	transfer to the Trustee to be added to the
principal of the Trust under Trust Agreement No. 1 a sum equal to (I)
the present value on the date of the Change in Control (or on such
fifth business day if the Board has declared a Change in Control to be
imminent) of the payments to be made to Executive under the provisions
of Annex A and Section 5 hereof, such present value to be computed
using the assumptions set forth in Annex A hereof and the computations
provided for in Section 5 hereof less (II) the balance in the
Executive’s accounts provided for in Trust Agreement No. 1 as of the
most recent completed valuation thereof, as certified by the Trustee
under Trust Agreement No. 1 less (III) the balance in the Executive’s
accounts provided for in Trust Agreement No. 7 as of the most recently
completed valuation thereof, as certified by the Trustee under Trust
Agreement No. 7; provided, however, that if the Trustee under Trust
Agreement No. 1 and/or Trust Agreement No. 7 does not so certify by the
end of the fourth (4th) business day after the earlier of such Change
in Control or declaration, then the balance of such respective account
shall be deemed to be zero. Any payments of compensation, pension or
other benefits by the Trustee pursuant to Trust Agreement No. 1 or
Trust Agreement No. 7 shall, to the extent thereof, discharge the
Company’s obligation to pay compensation, pension and other benefits
hereunder, it being the intent of the Company that assets in such
Trusts be held as security for the Company’s obligation to pay
compensation, pension and other benefits under this Agreement; and






	 	(B)	 	transfer to the Trustee to be added to the
principal of the Trust under Trust Agreement No. 2 the sum of TWO
HUNDRED FIFTY THOUSAND DOLLARS ($250,000) less any principal in such
Trust on such fifth business day. Any payments of the Executive’s
attorneys’ and related fees and expenses by the Trustee pursuant to
Trust Agreement No. 2 shall, to the extent thereof, discharge the
Company’s obligation hereunder, it being the intent of the Company that
assets in such Trust be held as security for the Company’s obligation
under Section 7(a) hereof. Executive understands and acknowledges that
the entire corpus of the Trust under Trust Agreement No. 2 will be
$250,000 and that said amount will be available to discharge not only
the obligations of the Company to Executive under Section 7(a) hereof,
but also similar obligations of the Company to other executives and
employees under similar provisions of other agreements and plans.






	 	9.	 	Competitive Activity; Confidentiality; Nonsolicitation.(a) (a)
During the Term and for a period ending two years following the Executive’s
Separation from Service, if the Executive shall have received or shall be receiving
benefits under Section 4, and, if applicable, Section 5, the Executive shall not,
without the prior written consent of the Company, which consent shall not be
unreasonably withheld, engage in any Competitive Activity.






	 	(b)	 	During the Term, the Company agrees that it will disclose to Executive its
confidential or proprietary information (as defined in this Section 9(b)) to the
extent necessary for Executive to carry out his obligations to the Company. The
Executive hereby covenants and agrees that he will not, without the prior written
consent of the Company, during the Term or thereafter disclose to any person not
employed by the Company, or use in connection with engaging in competition with the
Company, any confidential or proprietary information of the Company. For purposes of
this Agreement, the term “confidential or proprietary information” will include all
information of any nature and in any form that is owned by the Company and that is
not publicly available (other than by Executive’s breach of this Section 9(b)) or
generally known to persons engaged in businesses similar or related to those of the
Company. Confidential or proprietary information will include, without limitation,
the Company’s financial matters, customers, employees, industry contracts, strategic
business plans, product development (or other proprietary product data), marketing
plans, and all other secrets and all other information of a confidential or
proprietary nature. For purposes of the preceding two sentences, the term “Company”
will also include any Subsidiary (collectively, the “Restricted Group”). The
foregoing obligations imposed by this Section 9(b) will not apply (i) during the
Term, in the course of the business of and for the benefit of the Company, (ii) if
such confidential or proprietary information will have become, through no fault of
the Executive, generally known to the public or (iii) if the Executive is required by
law to make disclosure (after giving the Company notice and an opportunity to contest
such requirement).






	 	(c)	 	The Executive hereby covenants and agrees that during the Term and for two
years thereafter Executive will not, without the prior written consent of the
Company, which consent shall not unreasonably be withheld, on behalf of Executive or
on behalf of any person, firm or company, directly or indirectly, attempt to
influence, persuade or induce, or assist any other person in so persuading or
inducing, any employee of the Restricted Group to give up, or to not commence,
employment or a business relationship with the Restricted Group.






	 	(d)	 	The Executive further agrees that he shall return, within 10 days of the
effective date of his termination as an employee of the Company and any Subsidiary,
in good condition, all property of the Company and any Subsidiary then in his
possession, including, without limitation, whether in hard copy or in media (i)
property, documents and/or all other materials (including copies, reproductions,
summaries and/or analyses) which constitute, refer or relate to confidential or
proprietary information of the Company or any Subsidiary, (ii) keys to property of
the Company or any Subsidiary, (iii) files and (iv) blueprints or other drawings.






	 	(e)	 	The Executive further acknowledges and agrees that his obligation of
confidentiality shall survive until and unless such confidential or proprietary
information of the Company or any Subsidiary shall have become, through no fault of
the Executive, generally known to the public or the Executive is required by law
(after providing the Company with notice and opportunity to contest such requirement)
to make disclosure. The Executive’s obligations under this Section are in addition
to, and not in limitation or preemption of, all other obligations of confidentiality
which the Executive may have to the Company and any Subsidiary under general legal or
equitable principles or statutes.






	 	(f)	 	During the two (2) years following the Executive’s Separation from Service,
the Executive further agrees that he will not, directly or indirectly:






(i) induce or attempt to induce customers, business relations or accounts of
the Company or any of the Subsidiaries to relinquish their contracts or
relationships with the Company or any of the Subsidiaries; or




(ii) solicit, entice, assist or induce other employees, agents or independent
contractors to leave the employ of the Company or any of the Subsidiaries or to
terminate their engagements with the Company and/or any of the Subsidiaries or
assist any competitors of the Company or any of the Subsidiaries in securing the
services of such employees, agents or independent contractors.




	10.	 	Release. Receipt of Severance Compensation by the Executive is conditioned upon (the
Executive executing and delivering to the Company a release substantially in the form provided
in Exhibit A. Such release must be executed and delivered by no later than the fifth day
following the expiration of the 21-day period referred to in paragraph 5(c) of Exhibit A, and
no payment of any Severance will be made until the expiration of the 7-day revocation period
referred to in paragraph 5(d) of Exhibit A.






	11.	 	Employment Rights. Nothing expressed or implied in this Agreement shall create any
right or duty on the part of the Company, a Subsidiary or the Executive to have the Executive
remain in the employment of the Company or a Subsidiary at any time prior to or following a
Change in Control. Any Separation from Service of the Executive or the removal of the
Executive from the office or position in the Company or a Subsidiary prior to a Change in
Control but following the commencement of any discussion with any third person that ultimately
results in a Change in Control shall be deemed to be a Separation from Service of the
Executive after a Change in Control for all purposes of this Agreement.






	12.	 	Withholding of Taxes. The Company may withhold from any amounts payable under this
Agreement all federal, state, city or other taxes as the Company is required to withhold
pursuant to any applicable law, regulation or ruling.






	 	13.	 	Successors and Binding Agreement.(a) (a) The Company will require
any successor (whether direct or indirect, by purchase, merger, consolidation,
reorganization or otherwise) to all or substantially all of the business or assets of
the Company, by agreement in form and substance reasonably satisfactory to the
Executive, expressly to assume and agree to perform this Agreement in the same manner
and to the same extent the Company would be required to perform if no such succession
had taken place. This Agreement will be binding upon and inure to the benefit of the
Company and any successor to the Company, including without limitation any persons
acquiring directly or indirectly all or substantially all of the business or assets
of the Company whether by purchase, merger, consolidation, reorganization or
otherwise (and such successor shall thereafter be deemed the “Company” for the
purposes of this Agreement), but will not otherwise be assignable, transferable or
delegable by the Company.






	 	(b)	 	This Agreement will inure to the benefit of and be enforceable by the
Executive’s personal or legal representatives, executors, administrators, successors,
heirs, distributees and legatees.






	 	(c)	 	This Agreement is personal in nature and neither of the parties hereto
shall, without the consent of the other, assign, transfer or delegate this Agreement
or any rights or obligations hereunder except as expressly provided in Sections 13(a)
and 13(b). Without limiting the generality or effect of the foregoing, the
Executive’s right to receive payments hereunder will not be assignable, transferable
or delegable, whether by pledge, creation of a security interest, or otherwise, other
than by a transfer by Executive’s will or by the laws of descent and distribution
and, in the event of any attempted assignment or transfer contrary to this Section
13(c), the Company shall have no liability to pay any amount so attempted to be
assigned, transferred or delegated.






	 	(d)	 	The obligation of the Company to make payments and/or provide benefits
hereunder shall represent an unsecured obligation of the Company.






	 	(e)	 	The Company recognizes that each Executive will have no adequate remedy at
law for breach by the Company of any of the agreements contained herein and, in the
event of any such breach, the Company hereby agrees and consents that each Executive
shall be entitled to a decree of specific performance, mandamus or other appropriate
remedy to enforce performance of obligations of the Company under this Agreement.






	14.	 	Notices. For all purposes of this Agreement, all communications, including without
limitation notices, consents, requests or approvals, required or permitted to be given
hereunder will be in writing and will be deemed to have been duly given when hand delivered or
dispatched by electronic facsimile transmission (with receipt thereof orally confirmed), or
five business days after having been mailed by United States registered or certified mail,
return receipt requested, postage prepaid, or three business days after having been sent by a
nationally recognized overnight courier service such as FedEx or UPS, addressed to the Company
(to the attention of the Vice President of Human Resources of the Company) at its principal
executive office and to the Executive at his principal residence, or to such other address as
any party may have furnished to the other in writing and in accordance herewith, except that
notices of changes of address shall be effective only upon receipt.






	15.	 	Governing Law. The validity, interpretation, construction and performance of this
Agreement will be governed by and construed in accordance with the substantive laws of the
State of Ohio, without giving effect to the principles of conflict of laws of such State.






	16.	 	Validity. If any provision of this Agreement or the application of any provision
hereof to any person or circumstances is held invalid, unenforceable or otherwise illegal, the
remainder of this Agreement and the application of such provision to any other person or
circumstances will not be affected, and the provision so held to be invalid, unenforceable or
otherwise illegal will be reformed to the extent (and only to the extent) necessary to make it
enforceable, valid or legal.






	17.	 	Administration of this Agreement.






	 	(a)	 	In General: This Agreement shall be administered by the Company.






	 	(b)	 	Delegation of Duties: The Company may delegate any of its
administrative duties, including, without limitation, duties with respect to the
processing, review, investigation, approval and payment of severance pay and Gross-up
Payments, to named administrator or administrators.






	 	(c)	 	Regulations: The Company shall promulgate any rules and
regulations it deems necessary in order to carry out the purposes of this Agreement
or to interpret the terms and conditions of this Agreement; provided, however, that
no rule, regulation or interpretation shall be contrary to the provisions of this
Agreement.






	 	(d)	 	Claims Procedure: Subject to the provisions of Section 5, the
Company shall determine the rights of any employee of the Company to any Severance
Compensation or a Gross-up Payment hereunder. Any employee or former employee of the
Company or a Subsidiary who believes that he has not received any benefit under this
Agreement to which he believes he is entitled, may file a claim in writing with the
Vice President Human Resources. The Company shall, no later than 90 days after the
receipt of a claim, either allow or deny the claim by written notice to the claimant.
If a claimant does not receive written notice of the Company’s decision on his claim
within such 90-day period, the claim shall be deemed to have been denied in full.






A denial of a claim by the Company, wholly or partially, shall be written in a
manner calculated to be understood by the claimant and shall include:




	 	(i)	 	the specific reason or reasons for the denial;






	 	(ii)	 	specific reference to pertinent provisions of this Agreement on
which the denial is based;






	 	(iii)	 	a description of any additional material or information
necessary for the claimant to perfect the claim and an explanation of why such
material or information is necessary; and






	 	(iv)	 	an explanation of the claim review procedure.






A claimant whose claim is denied (or his duly authorized representative) may,
within 30 days after receipt of denial of his claim, request a review of such
denial by the Company by filing with the Secretary of the Company a written request
for review of his claim. If the claimant does not file a request for review with
the Company within such 30-day period, the claimant shall be deemed to have
acquiesced in the original decision of the Company on his claim. If a written
request for review is so filed within such 30-day period, the Company shall conduct
a full and fair review of such claim. During such full review, the claimant shall
be given the opportunity to review documents that are pertinent to his claim and to
submit issues and comments in writing. The Company shall notify the claimant of
its decision on review within 60 days after receipt of a request for review.
Notice of the decision on review shall be in writing. If the decision on review is
not furnished to the claimant within such 60-day period, the claim shall be deemed
to have been denied on review.




	 	(e)	 	Revocability of Action: Any action taken by the Company with
respect to the rights or benefits under this Agreement of the Executive shall be
revocable by the Company as to payments or distributions not yet made to such person,
and acceptance of Severance Compensation or a Gross-up Payment under this Agreement
constitutes acceptance of and agreement to the Company making any appropriate
adjustments in future payments or distributions to such person to offset any excess
or underpayment previously made to him.






	 	(f)	 	Requirement of Receipt: Upon receipt of any Severance Compensation
or a Gross-up Payment hereunder, the Company reserves the right to require any
Executive to execute a receipt evidencing the amount and payment of such Severance
Compensation and/or Gross-up Payment.






	18.	 	Amendment and Termination. The Company reserves the right, except as hereinafter
provided, at any time and from time to time, to amend, modify, change or terminate this
Agreement and/or any Committee Action, including any Exhibit thereto; provided, however, that
any such amendment, modification, change or termination that adversely affects the rights of
the Executive under this Agreement may not be made without the written consent of the
Executive; and provided further that any such amendment or termination shall be made only if
permitted in accordance with the requirements of Section 409A of the Code.






	18.	 	Special Amendments. Notwithstanding any other provision of this Agreement, on or
prior to the last day on which amendments can be made to this Agreement to bring it into
compliance with or make it exempt from the requirements of Section 409A of the Code, such an
amendment can be unilaterally made by:






	 	(a)	 	The Company as long as a Change in Control has
not occurred; or






	 	(b)	 	The Executive if a Change in Control has
occurred.






Notwithstanding the foregoing, in the event that the Treasury Regulations and other
guidance available on such last day prohibit accelerating any payments into 2008 (or a
subsequent year) and/or prohibit deferring any payments which would have been paid in 2008
(or a subsequent year) into a later year, then any such amendment pursuant to this Section
will comply with such prohibitions. In addition, any such amendment shall not increase the
severance benefits of the Executive beyond what are set forth in the Agreement.




	19.	 	Other Plans, etc. If the terms of this Agreement are inconsistent with the
provisions of any other plan, program, contract or arrangement of the Company or any
Subsidiary, to the extent such plan, program, contract or arrangement may be amended by the
Company or a Subsidiary, the terms of this Agreement will be deemed to so amend such plan,
program, contract or arrangement, and the terms of this Agreement will govern. This Agreement
supersedes and replaces the Cleveland-Cliffs Inc Change in Control Severance Pay Plan.






	20.	 	Construction. The masculine gender, when used in this Agreement, shall be deemed to
include the feminine gender and the singular number shall include the plural, unless the
context clearly indicates to the contrary.






	21.	 	Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original but all of which together will constitute one and the
same agreement.





IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered
as of the date first above written.




	 	 	 	CLIFFS NATURAL RESOURCES INC.






	 	 	 	By:






Executive Vice President – Human & Technical
Resources




Executive



1




CLIFFS NATURAL RESOURCES INC.




SEVERANCE AGREEMENT




ANNEX A




Severance Compensation




(1) A lump sum payment in an amount equal to the number of years in the Continuation Period
defined in Section 1(h) of the Severance Agreement multiplied by the sum of (A) Base Pay (at the
highest rate in effect for any period prior to the Executive’s Separation from Service), plus (B)
Incentive Pay (in an amount equal to not less than the greater of (i) the target bonus and/or
target award opportunity for the fiscal year immediately preceding the year in which the Change in
Control occurred, (ii) the target bonus and/or target award opportunity for the fiscal year in
which the Change in Control occurred or (iii) the target bonus and/or target award opportunity for
the fiscal year in which the Executive’s Separation from Service occurs). Such payment shall be
made by the later of ten (10) business days after the Executive’s Separation from Service or the
end of the seven (7) day revocation period described in Paragraph 5(d) of Exhibit A. Such payment
shall be exempt from the provisions of Internal Revenue Code section 409A by reason of the
short-term deferral rules described in Treasury Department Regulations section 1.409A-1(b)(4).



(2) During the Continuation Period as defined in Section 1(h) of the Severance Agreement, the
Company will arrange to provide the Executive with medical and dental benefits and insurance that
are the same as those that the Executive was receiving or entitled to receive immediately prior to
the Executive’s Separation from Service (or, if greater, immediately prior to the Change in
Control). Without otherwise limiting the purposes or effect of Section 6, the medical and dental
benefits otherwise receivable by the Executive pursuant to this Paragraph 2 will be reduced to the
extent comparable medical and dental benefits are actually received by the Executive from another
employer during the Continuation Period following the Executive’s Separation from Service, and any
such benefits actually received by the Executive shall be reported by the Executive to the Company.
The first 18 months of such medical and dental benefits are exempt from Internal Revenue Code
section 409A under Treasury Department Regulations section 1.409A-1(b)(9)(v)(B) and the balance of
such medical and dental benefits is covered by Internal Revenue Code section 409A but have a fixed
payment schedule that commences more than 6 months after the Separation from Service of the
Executive.



(3) For the Continuation Period defined in Section 1(h) of the Separation Agreement, the
Company will arrange to provide the Executive with Employee Benefits that are welfare benefits,
other than medical and dental benefits covered by Paragraph 2, (such “welfare benefits” by their
nature exclude stock option, performance share, performance unit, stock purchase, stock
appreciation or similar compensatory benefits) that are the same as those that the Executive was
receiving or entitled to receive immediately prior to the Executive’s Separation from Service (or,
if greater, immediately prior to the Change in Control). Without otherwise limiting the purposes
or effect of Section 6, Employee Benefits otherwise receivable by the Executive pursuant to this
Paragraph 3 will be reduced to the extent comparable welfare benefits are actually received by the
Executive from another employer during the Continuation Period following the Executive’s Separation
from Service, and any such benefits actually received by the Executive shall be reported by the
Executive to the Company. Notwithstanding the foregoing to the contrary, no such Employee Benefits
that are not excludable from the income of the Executive and are in excess of the then current
dollar limit set forth in Internal Revenue Code section 402(g)(1)(B) shall be payable during the
first six (6) months after the Separation from Service of the Executive in accordance with the
provisions of Treasury Department Regulations section 1.409A – 1(b)(9)(v)(D). To the extent that
amounts would have been payable during such six (6) month period in excess of such limit, the
excess amount shall be payable in the first five (5) days of the seventh (7th) month
after his Separation from Service. The Executive shall have the right during such six (6) month
period to pay any unpaid part of the premiums on such welfare benefits at his own expense in order
for the Executive to keep such welfare benefits in force.



(4) If and to the extent that any benefit described in Paragraphs 2 and 3 is not or cannot be
paid or provided under a policy, plan, program or arrangement of the Company or any Subsidiary, as
the case may be, then the Company will itself pay or provide for the payment to the Executive, his
dependents and beneficiaries, of such Employee Benefits along with, in the case of any benefit
described in Paragraphs 2 or 3 which becomes subject to tax because it is not or cannot be paid or
provided under any such policy, plan, program or arrangement of the Company or any Subsidiary, an
additional amount such that after payment by the Executive, or his dependents or beneficiaries, as
the case may be, of all taxes imposed on the benefit and payment and all taxes imposed on the
additional amount, the recipient retains an amount equal to the taxes on the original benefit or
payment; provided that any such additional amount shall, in accordance with Treasury Department
Regulations section 1.409A-3(i)(1)(v), be paid no later than the end of the taxable year of the
Executive following the year in which the Executive remits to the appropriate taxing authority the
taxes to which the additional payment relates.



(5) A lump sum payment (the “Accrued SRP Payment”) payable within the first five days of the
seventh (7th) month after his Separation from Service in an amount equal to the
actuarial equivalent of his accrued benefit under the SRP as of the date of his Separation from
Service. In determining such lump sum payment, any benefit under the SRP attributable to the
“final average pay” formula of the Pension Plan shall be converted to a lump sum actuarial
equivalent as described below and any benefit under the SRP attributable to the “cash balance”
formula of the Pension Plan shall be based on the amount that would be the Executive’s account
balance under the cash balance formula of the SRP. Such lump sum payment complies with the
requirements of Internal Revenue Code section 409A since it is payable on a fixed day determined by
the Executive’s Separation from Service and is not payable within the first six (6) months after
his or her Separation from Service in accordance with Treasury Department Regulations section
1.409A-1(c)(3)(v).



(6) A lump sum payment (the “Non-accrued SRP Payment”) payable within the first five days of
the seventh (7th) month after his Separation from Service in an amount equal to the
actuarial equivalent of the future pension benefits which the Executive would have been entitled to
accrue under the SRP during the Continuation Period, as modified by this Paragraph (6) (assuming
Base Salary and Incentive Pay as determined in Paragraph (1), if the Executive had remained in the
full-time employment of the Company for the entire Continuation Period. In determining such lump
sum payment, any benefit under the SRP attributable to the “final average pay” formula of the
Pension Plan shall be converted to a lump sum actuarial equivalent as described below and any
benefit under the SRP attributable to the “cash balance” formula of the Pension Plan shall be based
on the amount that would be the Executive’s account balance under the cash balance formula of the
SRP. Such lump sum payment complies with the requirements of Internal Revenue Code section 409A
since it is payable on a fixed day determined by the Executive’s Separation from Service and is not
payable within the first six (6) months after his or her Separation from Service in accordance with
Treasury Department Regulations section 1.409A-1(c)(3)(v).



(7) The calculation of the SRP Payment and its actuarial equivalence shall be made as of the
date six (6) months after Executive’s Separation from Service using the assumptions and factors
used in the Pension Plan for similar calculations. Any payment attributable to the “final average
pay” formula under the Pension Plan shall be discounted from the date the Executive would have been
eligible to receive an unreduced benefit under such formula (using as his “continuous service” for
this purpose the sum of his actual continuous service, the continuous service he would have had
during the Continuation Period and his Industry Service) to the date of payment using the discount
rate specified in the Pension Plan.



The Company hereby waives the discretionary right, at any time subsequent to the date of a Change
in Control, to amend or terminate the SRP as to the Executive as provided in paragraph 7 thereof or
to terminate the rights of the Executive or his beneficiary under the SRP in the event the
Executive engages in a competitive business as provided in any plan or arrangement between the
Company and the Executive or applicable to the Executive.



This Paragraph (7) shall constitute a “Supplemental Agreement” as defined in Paragraph 1.J of the
SRP. The terms of the Agreement and this Annex A shall not replace the SRP with respect to the
Executive, but shall take precedence to the extent they are contrary to provisions contained in the
SRP.



Payment of the SRP Payment by the Company shall be deemed to be a satisfaction of all obligations
of the Company to the Executive under the SRP.



(8) A lump sum amount equal to




(A) Base Salary through the Executive’s Separation from Service, plus




(B) unless otherwise expressly provided by the applicable policy, plan, program
or agreement, the value of any annual bonus or long-term incentive pay (including,
without limitation, incentive-based annual cash bonuses, performance units, and
retention units but not including any equity-based compensation or compensation
provided under a plan intended to be qualified under Sections 401(a) and 501(a) of
the Code or any other plan included in the definition of “qualified plan” for
purposes of Section 409A of the Code): (i) earned but unpaid relating to
performance periods ending prior to the date on which the Separation from Service
occurred; and (ii) earned or granted with respect to the Executive’s service during
the performance periods or retention periods that include the date on which the
Executive’s Separation from Service occurred, disregarding any applicable vesting
requirements. Amounts payable pursuant to (i) shall be calculated at actual
performance, and amounts payable pursuant to (ii) shall be calculated at the plan
target rate.



Such payment shall be made by the later of ten (10) business days after the Executive’s Separation
from Service or the end of the seven (7) day revocation period described in Paragraph 5(d) of
Exhibit A. Such payment shall be exempt from the provisions of Internal Revenue Code section 409A
by reason of the short-term deferral rules described in Treasury Department Regulations section
1.409A-1(b)(4).



(9) Reasonable outplacement services by a firm selected by the Executive, at the expense of
the Company in an amount up to 15% of the Executive’s Base Pay. Such outplacement services shall
be provided within a period ending no later than the end of the second taxable year of the
Executive following the year in which the Executive’s Separation from Service occurred and the fees
for such services shall be paid by the Company within five days of receipt of an invoice from the
outplacement provider for its services or within five days of the time the Executive presents the
provider’s invoice for such services to the Company, provided in either case that the invoice shall
be submitted no later than five days prior to the end of the third taxable year of the Executive
following the year in which his Separation from Service occurred. Such payments are exempt from
the provisions of Internal Revenue Code section 409A by reason of the in-kind benefit rules
described in Treasury Department Regulations section 1.409A-1(b)(9)(v)(C).



2




(10) Post-retirement medical, hospital, surgical and prescription drug coverage for the lifetime of

the Executive, his spouse and any eligible dependents that are the same as that which would have

been furnished on the day prior to the Change in Control to the Executive if he had retired on such

date with full eligibility for such benefits. Such retiree medical coverage shall have a level of

employer subsidy, if any, as the Executive would have had upon his retirement or Separation from

Service as of the end of the Continuation Period determined in accordance with the terms of the

Plan immediately prior to the Change in Control. Such retiree medical coverage will not start

until after the end of the twenty-four (24) month period during which he will be provided with

active employee medical coverage pursuant to Paragraph 2 above. Such post-retirement retiree

medical coverage complies with Internal Revenue Code section 409A because they have a fixed payment

schedule that commences more than 6 months after the Separation from Service of the

Executive.CLIFFS NATURAL RESOURCES INC.




SEVERANCE AGREEMENT




EXHIBIT A




Form of Release




WHEREAS, the Executive’s employment has been terminated in accordance with Section 3 of the
Severance Agreement (the “Agreement”) dated as of      between the Executive and
Cliffs Natural Resources Inc.; and



WHEREAS, the Executive is required to sign this Release in order to receive the Severance
Compensation (as such term is defined in the Agreement) as described in Annex A of the Agreement
and the other benefits described in the Agreement.



NOW THEREFORE, in consideration of the promises and agreements contained herein and other good
and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and
intending to be legally bound, the Executive agrees as follows:



1. This Release is effective on the date hereof and will continue in effect as provided
herein.



2. In consideration of the payments to be made and the benefits to be received by the
Executive pursuant to the Agreement, which the Executive acknowledges are in addition to payments
and benefits which the Executive would be entitled to receive absent the Agreement (other than
severance pay and benefits under any other severance plan, policy, program or arrangement sponsored
by Cliffs Natural Resources Inc.), the Executive, for himself and his dependents, successors,
assigns, heirs, executors and administrators (and his and their legal representatives of every
kind), hereby releases, dismisses, remises and forever discharges Cliffs Natural Resources Inc.,
its predecessors, parents, subsidiaries, divisions, related or affiliated companies, officers,
directors, stockholders, members, employees, heirs, successors, assigns, representatives, agents
and counsel (the “Company”) from any and all arbitrations, claims, including claims for attorney’s
fees, demands, damages, suits, proceedings, actions and/or causes of action of any kind and every
description, whether known or unknown, which Executive now has or may have had for, upon, or by
reason of any cause whatsoever (“claims”), against the Company, including but not limited to:




(a) any and all claims arising out of or relating to Executive’s employment by or
service with the Company and his termination from the Company other than any claims arising
under the Agreement or under any employee benefit programs or executive compensation
programs not specifically addressed in the Agreement;




(b) any and all claims of discrimination, including but not limited to claims of
discrimination on the basis of sex, race, age, national origin, marital status, religion or
handicap, including, specifically, but without limiting the generality of the foregoing, any
claims under the Age Discrimination in Employment Act, as amended, Title VII of the Civil
Rights Act of 1964, as amended, the Americans with Disabilities Act, Ohio Revised Code
Section 4101.17 and Ohio Revised Code Chapter 4112, including Sections 4112.02 and 4112.99
thereof; and




(c) any and all claims of wrongful or unjust discharge or breach of any contract or
promise, express or implied.




3. Executive hereby gives up any and all rights or claims to be a class representative or
otherwise participate in any class action on behalf of any employee benefit plan of the
Company or any Subsidiary.




4. Executive understands and acknowledges that the Company does not admit any violation of
law, liability or invasion of any of his rights and that any such violation, liability or
invasion is expressly denied. The consideration provided for this Release is made for the
purpose of settling and extinguishing all claims and rights (and every other similar or
dissimilar matter) that Executive ever had or now may have against the Company to the extent
provided in this Release. Executive further agrees and acknowledges that no
representations, promises or inducements have been made by the Company other than as appear
in the Agreement.




5. Executive further agrees and acknowledges that:




(a) The release provided for herein releases claims to and including the date of this
Release;




(b) He has been advised by the Company to consult with legal counsel prior to executing
this Release, has had an opportunity to consult with and to be advised by legal counsel of
his choice, fully understands the terms of this Release, and enters into this Release
freely, voluntarily and intending to be bound;




(c) He has been given a period of 21 days, commencing on the day after his Separation
from Service, to review and consider the terms of this Release, prior to its execution and
that he may use as much of the 21 day period as he desires; and




(d) He may, within 7 days after execution, revoke this Release. Revocation shall be
made by delivering a written notice of revocation to the Vice President Human Resources at
the Company. For such revocation to be effective, written notice must be actually received
by the Vice President Human Resources at the Company no later than the close of business on
the 7th day after Executive executes this Release. If Executive does exercise his right to
revoke this Release, all of the terms and conditions of the Release shall be of no force and
effect and the Company shall not have any obligation to make payments or provide benefits to
Executive as set forth in Sections 4, 5, and 7 of the Agreement.




6. Executive agrees that he will never file a lawsuit or other complaint asserting any claim
that is released in this Release.



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7. Executive waives and releases any claim that he has or may have to reemployment after
     .



IN WITNESS WHEREOF, the Executive has executed and delivered this Release on the date set
forth below.




	 	 	Dated:






	 	 	 	Executive






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