Document:

Exhibit

Exhibit 10.1

FIRST AMENDMENT AND WAIVER, dated as of April 27, 2020 (this “Amendment”), to the FOURTH AMENDED AND RESTATED CREDIT AGREEMENT, dated as of December 15, 2017 (as amended, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”), among HANESBRANDS INC., a Maryland corporation (the “Parent Borrower”), MFB INTERNATIONAL HOLDINGS S.À R.L., a société à responsabilité limitée, incorporated and existing under the laws of the Grand Duchy of Luxembourg, having its registered office at 33, rue du Puits Romain, L-8070 Bertrange and registered with the Luxembourg Trade and Companies Register under number B 182.082 (the “Lux Borrower”), HBI Holdings Australasia Pty Ltd (the “Australian Borrower and, together with the Parent Borrower and the Lux Borrower, the “Borrowers”), the Lenders party thereto from time to time and JPMORGAN CHASE BANK, N.A. (“JPMorgan”), as the Administrative Agent and the Collateral Agent (in such capacities, the “Administrative Agent”).
W I T N E S S E T H :
WHEREAS, the Parent Borrower has requested that the Required Covenant Lenders consent to waive and modify certain requirements of Section 7.2.4 of the Credit Agreement for the Fiscal Quarters ending June 27, 2020 through July 3, 2021, and the Required Covenant Lenders are willing to consent to such waiver and modification on the terms and subject to the conditions set forth in this Amendment;
WHEREAS, the Borrowers, the Required Covenant Lenders and the Administrative Agent are willing to agree to this Amendment on the terms set forth herein.
NOW, THEREFORE, pursuant to Section 10.1 of the Credit Agreement, the parties hereto hereby agree as follows:
Section 1.DEFINITIONS.
1.1    Terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement unless otherwise defined herein.
1.2    As used in this Amendment, the terms listed in this Section 1.2 shall have the respective meanings set forth in this Section 1.2:
“Covenant Relief Period” means the period commencing on the Amendment Effective Date through (but not including) the Covenant Relief Period Termination Date.
“Covenant Relief Period Termination Certificate” means an irrevocable certificate of an Authorized Officer of the Parent Borrower (similar in form to a Compliance Certificate) (i) stating that such certificate is a Covenant Relief Period Termination Certificate and (ii) certifying compliance with the covenants set forth in Section 7.2.4 on such date and demonstrating such compliance in reasonable detail.
“Covenant Relief Period Termination Date” means the earlier of (x) the date of delivery of the Compliance Certificate pursuant to Section 7.1.1(a) for the fiscal quarter ending October 2, 2021 demonstrating compliance with the covenants set forth in Section 7.2.4 on such date and (y) the date on which the Parent Borrower delivers to the Administrative Agent a Covenant Relief Period Termination Certificate; provided that the Parent Borrower may only deliver a Covenant Relief Period Termination Certificate concurrently with the delivery of financial statements pursuant to Section 7.1.1(a) or 7.1.1(b); provided, further, that the Borrower may only deliver a Covenant Relief Period Termination Certificate 

        

once, on which date the Covenant Relief Period will terminate permanently for all purposes of this Agreement and the other Loan Documents.
“Majority Revolving Loan Lenders” means, at any time, Non-Defaulting Revolving Loan Lenders holding more than 50% of the Total Revolving Exposure Amount of all Non-Defaulting Revolving Loan Lenders.

SECTION 2.    AMENDMENT 
On and after the Amendment Effective Date, the proviso in the definition of “Leverage Ratio” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety, solely for the purposes of Section 7.2.4(i) and the calculation of the Minimum Liquidity Covenant (as defined below), as follows: “provided, that for purposes of calculating the Leverage Ratio, Total Debt shall be reduced by unrestricted cash and Cash Equivalent Investments of the Parent Borrower and its Subsidiaries (other than any Subsidiaries organized under the laws of China).”

SECTION 3.    COVENANT RELIEF AND WAIVER.
3.1    Each Lender party hereto (which collectively constitute the Required Covenant Lenders) hereby consents to (i) waive compliance with the Leverage Ratio requirement in Section 7.2.4(i) of the Credit Agreement (the “Leverage Covenant”) commencing with the Fiscal Quarter ending June 27, 2020 and ending immediately after the Fiscal Quarter ending July 3, 2021 and (ii) reduce the Interest Coverage Ratio in Section 7.2.4(ii) of the Credit Agreement (the “Interest Coverage Ratio”), from 3.00:1.00 to (a) 2.00:1.00 for the Fiscal Quarters ending June 27, 2020 through April 3, 2021 and (b) 2.25:1.00 for the Fiscal Quarter ending July 3, 2021, in each case, during the Covenant Relief Period and the Compliance Certificate delivered during the Covenant Relief Period shall be revised to reflect these waivers and amendments; provided that during the Covenant Relief Period, the Parent Borrower shall not, and shall not permit any of its Subsidiaries to, directly or indirectly:
(a)    permit the sum of (i) the aggregate amount of cash and Cash Equivalents of the Borrowers and the Subsidiaries (excluding cash and Cash Equivalents securing funded Indebtedness other than the Obligations) and (ii) the aggregate available Revolving Loan Commitments of all Revolving Loan Lenders, at any time, to be less than $300 million (the “Minimum Liquidity Covenant”); provided that upon the incurrence of Indebtedness after the Amendment Effective Date in an aggregate principal amount in excess of $150 million, such Minimum Liquidity Covenant in effect shall be increased to $400 million; 
(b)    permit EBITDA for the Measurement Period for which Section 7.1.1 financials have been delivered to be less than (i) $625 million for the Fiscal Quarter ended June 27, 2020, (ii) $505 million for the Fiscal Quarter ended September 26, 2020, (iii) $445 million for the Fiscal Quarter ended January 2, 2021, (iv) $435 million for the Fiscal Quarter ended April 3, 2021 and (v) $505 million for the Fiscal Quarter ended July 3, 2021;
(c)    make any Restricted Payments pursuant to Section 7.2.6 of the Credit Agreement; provided the Parent Borrower shall be permitted to issue common stock dividends of up to $215 million in the aggregate in any trailing twelve month period;

        

(d)    (i) incur any Indebtedness under Section 2.9 of the Credit Agreement if the Senior Secured Leverage Ratio is greater than 3.00 to 1.00 both before and after giving effect to such Incremental Credit Increases (assuming, for the purposes of the calculation, that the Revolving Loan Commitments and any Incremental Other Currency Revolving Commitments are 50% drawn and that any Permitted Securitization is 50% utilized), (ii) incur more than $25 million of Indebtedness pursuant to Section 7.2.2(h) of the Credit Agreement, (iii) incur any Indebtedness pursuant to Section 7.2.2(i) of the Credit Agreement or (iv) incur more than $50 million of Indebtedness pursuant to Section 7.2.2(r) of the Credit Agreement; 
(e)    make any Investments pursuant to Section 7.2.5 (g), (k), (n) or (o) of the Credit Agreement; provided that the Parent Borrower or any Subsidiary thereof shall be permitted to make  Investments in Foreign Subsidiaries in an aggregate amount not to exceed $25 million and general Investments in an aggregate amount not to exceed $10 million;  
(f)    enter into any mergers or make any Permitted Acquisitions pursuant to Section 7.2.10 of the Credit Agreement; or
(g)    (i) submit any Borrowing Request requesting any borrowing of Revolving Loans or Swing Line Loans without the prior written consent of the Majority Revolving Loan Lenders if, immediately after giving effect to such borrowing, the aggregate amount of unrestricted cash and Cash Equivalents of the Parent Borrower and its Subsidiaries (other than any Subsidiaries organized under the laws of China) exceeds $500 million unless the Parent Borrower represents that such borrowing is necessary for a reasonable business purpose and (ii) and if, at any time, the Borrowers have outstanding Revolving Loans and/or Swing Line Loans and incur Indebtedness after the Amendment Effective Date in an aggregate principal amount in excess of $150 million then the Borrowers shall promptly prepay Revolving Loans and/or Swing Line Loans (which, for the avoidance of doubt, shall be accompanied by accrued and unpaid interest on the amount prepaid to the date of such prepayment) with 50% of the net proceeds of such incurrence of Indebtedness up to a maximum prepayment of $250 million.
3.2    During the Covenant Relief Period, the Applicable Margin and Applicable Commitment Fee Margin shall be calculated assuming the Leverage Ratio is ≥ 4.50:1.00. 

SECTION 4.    CONDITIONS TO EFFECTIVENESS OF AMENDMENT. This Amendment shall become effective on the date on which each of the following conditions have been satisfied or waived in accordance with the terms hereof and the Credit Agreement (such date, the “Amendment Effective Date”):
4.1    Counterparts: This Amendment shall have been executed and delivered by the Borrowers, the Administrative Agent and the Required Covenant Lenders.
4.2    Certificate: The Administrative Agent shall have received a certificate of the Parent Borrower dated as of the Amendment Effective Date, duly executed and delivered by an Authorized Officer of the Parent Borrower (certifying as to the matters set forth in Section 5 below.
4.3    Consent Fee. The Parent Borrower shall have paid to the Administrative Agent, for the account of each Required Covenant Lender that submits its consent hereto to the Administrative Agent prior to 5:00 p.m. New York City time on April 24, 2020, a consent fee in an amount equal to 0.125% of the aggregate principal amount of Revolving Loan Commitments, Revolving Credit Loans and New Term A Loans held by such consenting Lender immediately prior to the effectiveness of this Amendment.

        

4.4    Fees and Expenses.  All fees and out-of-pocket expenses for which invoices have been presented prior to the Amendment Effective Date (including the reasonable fees and expenses of legal counsel) required to be paid or reimbursed by the Borrowers pursuant to Section 10.3 of the Credit Agreement or any other letter agreement in connection with this Amendment shall have been paid or reimbursed.

SECTION 5.    REPRESENTATIONS AND WARRANTIES.  The Borrowers hereby represent to the Administrative Agent and each Lender, as follows:
5.1    After giving effect to this Amendment, each of the representations and warranties in the Credit Agreement and in the other Loan Documents are true and correct in all material respects (except to the extent that such representation or warranty is already qualified as to materiality) on and as of the date hereof as though made on and as of the date hereof, except to the extent that any such representation or warranty expressly relates to an earlier date, in which case such representation or warranty shall be true and correct in all material respects (except to the extent that such representation or warranty is already qualified as to materiality) as of such earlier date; and
5.2    At the time of and immediately after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing.

SECTION 6.    MISCELLANEOUS.
6.1    Continuing Effect; No Other Waivers or Amendments.  This Amendment shall not constitute an amendment or waiver of or consent to any provision of the Credit Agreement and the other Loan Documents not expressly referred to herein and shall not be construed as an amendment, waiver or consent to any action on the part of the Borrowers that would require an amendment, waiver or consent of the Administrative Agent, the Collateral Agent or the Lenders except as expressly stated herein.  Except as expressly amended, consented to or waived hereby, the provisions of the Credit Agreement and the other Loan Documents are and shall remain in full force and effect in accordance with their terms.
6.2    Loan Documents.  This Amendment shall constitute a “Loan Document” for all purposes under the Credit Agreement and the other Loan Documents.  Each Borrower executing this Amendment confirms and agrees that notwithstanding the effectiveness of this Amendment, each Loan Document to which such Person is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, in each case as amended by this Amendment.
6.3    Counterparts and Electronic Signatures.  This Amendment may be executed in any number of separate counterparts by the parties hereto (including by telecopy or via electronic mail), each of which counterparts when so executed shall be an original, but all the counterparts shall together constitute one and the same instrument.
The words “delivery”, “execute,” “execution,” “signed,” “signature,” and words of like import in this Amendment and any document executed in connection herewith shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided that notwithstanding anything contained herein to the contrary 

        

neither the Administrative Agent nor any Lender is under any obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Administrative Agent or such Lender pursuant to procedures approved by it and provided further without limiting the foregoing, upon the request of any party, any electronic signature shall be promptly followed by such manually executed counterpart.

6.4    GOVERNING LAW.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES THEREOF, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.
[Signature Pages Follow]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered by their respective duly authorized officers as of the date first above written.

HANESBRANDS INC.,
as Parent Borrower

By /s/ Jodie F. Covington
     Name: Jodie F. Covington
     Title:  Assistant Treasurer

MFB INTERNATIONAL HOLDINGS S.À R.L.,
as Lux Borrower

By /s/ Donald F. Cook
     Name:  Donald F. Cook
     Title:  Class A Manager

HBI HOLDINGS AUSTRALASIA PTY LTD,
as Australian Borrower

By /s/ Donald F. Cook
     Name:  Donald F. Cook
     Title:  Director

[Signature Page to Amendment and Waiver]

JPMORGAN CHASE BANK, N.A., 
as Administrative Agent

By:  /s/ Antje Focke
Name:  Antje Focke
Title: Executive Director

JPMORGAN CHASE BANK, N.A., 
as Lender

By: /s/ Antje Focke 
Name:  Antje Focke
Title: Executive Director

[Signature Page to Amendment and Waiver]

BANK OF AMERICA, N.A., 
as a Lender

By:  /s/ Anthony Hoye
Name: Anthony Hoye
Title: Director

[Signature Page to Amendment and Waiver]

PNC Bank, National Association, 
as a Lender

By:  /s/ Larry Jackson
Name: Larry Jackson
Title: Vice President

[Signature Page to Amendment and Waiver]

Truist Bank as successor by merger to SunTrust Bank and formerly known as Branch Banking and Trust Company, 
as a Lender

By:  /s/ Max Greer
Name: Max Greer
Title: Senior Vice President

[Signature Page to Amendment and Waiver]

HSBC Bank USA, N.A., 
as a Lender

By:  /s/ Robert J. Devir 
Name: Robert J. Devir
Title: Managing Director

[Signature Page to Amendment and Waiver]

BARCLAYS BANK PLC, 
as a Lender

By:  /s/ Christopher M. Aitkin 
Name: Christopher M. Aitkin
Title: Vice President

[Signature Page to Amendment and Waiver]

Fifth Third Bank, National Association, 
as a Lender

By:  /s/ James Beltz
Name: James Beltz
Title: Vice President

[Signature Page to Amendment and Waiver]

WELLS FARGO BANK, N.A., 
as a Lender

By:  /s/ Carl Hinrichs 
Name: Carl Hinrichs
Title: Director

[Signature Page to Amendment and Waiver]

THE BANK OF NOVA SCOTIA, 
as a Lender

By:  /s/ Kevin McCarthy 
Name: Kevin McCarthy
Title: Director

[Signature Page to Amendment and Waiver]

MUFG Bank, Ltd. f/k/a The Bank of Tokyo-Mitsubishi UFJ, Ltd., 
as a Lender

By:  /s/ Spencer Hughes 
Name: Spencer Hughes
Title: Managing Director

[Signature Page to Amendment and Waiver]

Goldman Sachs Bank USA, 
as a Lender

By:  /s/ Jamie Minieri 
Name: Jamie Minieri
Title: Authorized Signatory

[Signature Page to Amendment and Waiver]

Siemens Financial Services, Inc., 
as a Lender

By:  /s/ Marin Levy 
Name: Marin Levy
Title: Vice President

By:  /s/ M. Jentsch 
Name: M. Jentsch
Title: Vice President

[Signature Page to Amendment and Waiver]

The Northern Trust Company, 
as a Lender

By:  /s/ Andrew D. Holtz 
Name: Andrew D. Holtz
Title: Senior Vice President

[Signature Page to Amendment and Waiver]

WESTPAC BANKING CORPORATION, 
as a Lender

By:  /s/ Richard Yarnold 
Name: Richard Yarnold
Title: Tier Two Attorney

[Signature Page to Amendment and Waiver]

CITIZENS BANK, NATIONAL ASSOCIATION, 
as a Lender

By:  /s/ P. Jason Hembree
Name: P. Jason Hembree
Title: Vice President

[Signature Page to Amendment and Waiver]

SUMITOMO MITSUI BANKING CORPORATION, 
as a Lender

By:  /s/ Katie Lee
Name: Katie Lee
Title: Director

[Signature Page to Amendment and Waiver]

Deutsche Bank AG New York Branch, 
as a Lender

By:  /s/ Alicia Schug 
Name: Alicia Schug
Title: Vice President

By:  /s/ Philip Tancorra 
Name: Philip Tancorra
Title: Vice President

[Signature Page to Amendment and Waiver]

THE HUNTINGTON NATIONAL BANK, 
as a Lender

By:  /s/ Phil Andresen 
Name: Phil Andresen
Title: Vice President

[Signature Page to Amendment and Waiver]

The Bank of East Asia, Limited, New York Branch, 
as a Lender

By:  /s/ James Hua 
Name: James Hua
Title: SVP

By:  /s/ Maggie Wong 
Name: Maggie Wong
Title: General Manager

[Signature Page to Amendment and Waiver]

BANCO DE SABADELL, S.A., MIAMI BRANCH, 
as a Lender

By:  /s/ Ignacio Alcaraz
Name: Ignacio Alcaraz
Title: Head of Structured Finance Americas

[Signature Page to Amendment and Waiver]Exhibit 10.1

 

EXECUTION VERSION

 

OPTION AGREEMENT

 

This
Option Agreement (this “Agreement”), is made and entered as of April 30, 2020 (the “Effective
Date”), by and between United States Steel Corporation, a Delaware corporation (“USS”),
and Stelco Inc., a corporation governed under the Laws of Canada (“Stelco”). USS and Stelco are sometimes
referred to herein collectively as the “Parties” and each individually as a “Party.”
Unless otherwise specified, capitalized terms used herein shall have the meaning ascribed to such terms in Exhibit A
attached hereto.

 

RECITALS

 

		A.	USS wishes to grant to Stelco the Option (as defined herein) to acquire an undivided 25% interest
(the “Option Interest”) in and to a to-be-formed entity (the “Company”) that
will own USS’s current iron ore mine located in Mt. Iron, Minnesota (the “Minntac Mine”).

 

		B.	Stelco will pay USS $100,000,000 in the aggregate in accordance with the payment schedule set forth
in Section 2 (the “Payment”), for the Option. The Parties intend that, subject to exercise
of the Option, the Payment will be the initial installment of Stelco’s capital contribution to the Company at the closing
of the transactions contemplated by the Master Agreement (defined below), pursuant to which Stelco will contribute an additional
$500,000,000 to the Company.

 

		C.	Concurrently with, and subject to, the execution and delivery of this Agreement, the Parties have
entered into an Amended and Restated Pellet Sale and Purchase Contract (the “Pellet Agreement”) and Stelco
has previously provided a standby letter of credit, in the form required by the Pellet Agreement, to backstop Stelco’s payment
obligations under the Pellet Agreement (the “LOC”).

 

		D.	The Parties wish to enter into this Agreement on the terms and subject to the conditions described
herein.

 

NOW, THEREFORE, in
consideration of the mutual representations, warranties, covenants and agreements set forth herein and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby
agree as follows:

 

1.            
Grant
of Option;
Option Term. USS hereby grants to Stelco the right to exercise the option (the “Option”) to
purchase the Option Interest on the terms and subject to the conditions set forth herein and in the Master Agreement. Subject to
the termination provisions set forth in Section 10, the Option shall be exercisable by Stelco on the terms and subject
to the conditions herein at any time during the period commencing on the Final Payment Date and expiring at 11:59 p.m. Eastern
Time on January 31, 2027 or the earlier termination of this Agreement and the Option pursuant to Section 10 (the “Option
Term”), which for the avoidance of doubt, shall not be extended or tolled for any reason (including the pendency
of any Due Diligence Period or the delivery of an Exercise Notice) (the “Option Termination”).

 

     

     

    

 

2.            Option Payment. The Option is granted in consideration of Stelco’s payment of the amounts set forth below (each,
a “Partial Payment”) to USS by wire transfer of immediately available United States funds on or before
the dates set forth below (each, a “Payment Date”):

 

(a)              
$20,000,000 on the Effective Date;

 

(b)              
$20,000,000 on July 1, 2020;

 

(c)              
$20,000,000 on September 1, 2020;

 

(d)              
$20,000,000 on November 1, 2020; and

 

(e)              
$20,000,000 on the Final Payment Date.

 

provided,
that upon the consummation of the event set forth in Annex 1 (the “Acceleration Event”) prior
to the Final Payment Date, then the Payment Date of each remaining Partial Payment shall be immediately accelerated and become
due and payable within two Business Days after the Acceleration Event and such date of payment shall become the “Final Payment
Date” for all purposes in this Agreement; provided further, that if any Payment Date falls on a day that is
not a Business Day, the Partial Payment due on such Payment Date shall be due on the immediately preceding Business Day. Stelco
shall keep USS reasonably appraised of the status of the Acceleration Event and shall notify USS immediately following the consummation
thereof. In the event Stelco fails to make any Partial Payment on or before the applicable Payment Date (including upon the acceleration
of the Partial Payments due hereunder upon the termination of this Agreement and the Option pursuant to Section 10
(other than termination by USS pursuant to Section 10(b)(iii) if USS elects to pay Stelco the Termination Fee)), provided,
except with respect to the Partial Payment due on or before the Final Payment Date (for which no notice shall be required), USS
shall have given Stelco written notice, delivered at least three Business Days prior to drawing on the LOC, stating USS’s
intention to draw on the LOC, USS shall be entitled to immediately draw upon the LOC to satisfy all or any portion of the aggregate
amount of the unpaid Partial Payments, provided that nothing
in this Section 2 shall
otherwise limit USS’s right to seek any other remedy to which it is entitled at law or in equity in respect of Stelco’s
breach of its payment obligations hereunder.  Upon USS’s receipt of all Partial Payments (other than upon the termination
of this Agreement and the Option pursuant to Section 10), the amount of the LOC shall be reduced in accordance with
the terms of the Pellet Agreement. Notwithstanding anything to the contrary in the foregoing, within 30 days following the Effective
Date, Stelco shall amend the LOC (in a form, and on terms and conditions, satisfactory to USS in its sole discretion (acting reasonably))
to provide for draws thereon by USS pursuant to this Section 2 and provide such amended LOC to USS; provided, that
Stelco’s
failure to so provide such amended LOC to USS shall constitute a material breach of this Agreement entitling USS to terminate this
Agreement and the Option upon written notice to Stelco in accordance with Section 10(b)(i).

 

3.           
Exercise of Option.

 

(a)            Exercise
Date. At any time during the Option Term, but subject to the satisfaction or waiver of the conditions set forth in Section 8,
Stelco may exercise the Option by delivering to USS a written, unconditional, and irrevocable notice in the form attached
hereto as Exhibit B (the “Exercise Notice”). For the avoidance of doubt, the Payment
shall be credited toward the payment of any amounts due upon the consummation of the transactions contemplated by the Master
Agreement.

 

    2

     

    

 

(b)         
Master Agreement. Commencing immediately following the delivery of the Exercise Notice (the date of delivery thereof
being the “Exercise Date”), the Parties shall negotiate in good faith to finalize any bracketed or other
unfinished provisions of the Master Agreement and the exhibits and attachments thereto (including, without limitation, completion
of the Schedules (as defined in the Master Agreement)) and no later than 15 Business Days after the Exercise Date, each Party shall
deliver to the other Party a duly executed copy of the Master Agreement.

 

(c)       
   Pre-Exercise Due Diligence.

 

(i)           
At any time during the Option Term, Stelco may, upon written notice to USS in the form set out in Exhibit C
(a “Due Diligence Notice”), commence a confirmatory due diligence review of the assets and operations
of the Minntac Mine in accordance with this Section 3(c). Upon USS’s delivery of substantially all of the information
specified in the Due Diligence Notice, Stelco shall have a period of 60 days to complete confirmatory due diligence (the “Due
Diligence Period”) and deliver the Exercise Notice. USS will not be considered to have delivered “substantially
all” of the information specified in the Due Diligence Notice until all material information has been delivered, which, for
greater certainty shall include copies of the Minntac Mine’s then-current (A) mine plan (Item 7 of the Due Diligence Notice),
(B) resource and reserve estimates (Item 4 of the Due Diligence Notice); (C) annual operational and capital expenditure budgets
(Item 6 of the Due Diligence Notice) and (D) environmental assessments and remediation plans in USS’s or its advisors’
possession (Item 2 of the Due Diligence Notice).

 

(ii)          
From the date that Stelco delivers the Due Diligence Notice until the earlier of the Exercise Date, the termination of this
Agreement and the Option pursuant to Section 10, and the expiration of the Due Diligence Period, USS shall, subject
in all respects to the terms of, and the restrictions contained in, the Confidentiality Agreement:

 

(A)            
permit Stelco and its Representatives to make no more than three on-site visits to the Minntac Mine at a mutually acceptable
time and date(s) as may be reasonably required for Stelco to conduct its due diligence review and which shall be conducted in accordance
with USS’s reasonable on-site restrictions and visitation procedures;

 

(B)             
make available to Stelco or its Representatives the senior operational and management staff of the Minntac Mine at a mutually
acceptable time and date(s) as may be reasonably required for Stelco to conduct its due diligence review to be held in Pittsburgh,
Pennsylvania for a period of no more than three days;

 

    3

     

    

 

(C)             
provide Stelco and its Representatives with the information specified in the Due Diligence Notice; and

 

(D)            
permit environmental and technical consultants engaged by Stelco to conduct an on-site Phase I environmental site assessment
and technical assessment at the Minntac Mine.

 

(iii)    
    Simultaneously with the execution and delivery of this Agreement, the Parties will amend each
of the Existing Confidentiality Agreements (A) to extend the terms thereof to expire on the earlier of (1) the second
anniversary of the Option Termination (or if this Agreement and the Option are terminated pursuant to Section 10,
the second anniversary of the date of termination) and (2) the consummation
of the transactions contemplated by the Master Agreement and (B) to remove the right of either Party to terminate such
Existing Confidentiality Agreement for convenience prior to the expiration of the term thereof. Any information shared by the
Parties pursuant to this Agreement or any other Contract entered into between the Parties in connection herewith, shall in
all cases be subject to the Existing Confidentiality Agreements.

 

(iv)        
Any access granted by USS to Stelco and its Representatives shall be during normal business hours upon reasonable advance
written notice by Stelco to the Representatives designated by USS. For the avoidance of doubt, nothing in this Section 3(c)
or otherwise shall require USS to furnish to Stelco or its Representatives any materials or information (x) regarding USS’s
entry into or conducting of a sale process with respect to the Minntac Mine prior to execution of this Agreement, (y) which is
subject to an attorney/client, an attorney work-product or other legal privilege, or (z) which may not be disclosed pursuant to
applicable Law (including competitively sensitive information of USS; provided, that the Parties will use commercially
reasonable efforts to share such information via a “clean room” pursuant to the Existing Confidentiality Agreements),
a protective order or confidentiality agreement or obligation. Notwithstanding anything to the contrary contained herein, prior
to the Exercise Date, without the prior written consent of USS, which may be withheld for any reason, Stelco shall have no right
to perform invasive or subsurface investigations or environmental sampling of the properties or facilities of USS, including at
the Minntac Mine.

 

(d)         Post-Exercise
Matters. During the period commencing on the Exercise Date and ending upon the earlier of the execution and delivery of
the Master Agreement pursuant to Section 3(b) and termination of this Agreement and the Option pursuant to Section 10,
Stelco may withdraw the Exercise Notice by written notice to USS upon the occurrence of any Material Adverse Effect. If
Stelco withdraws the Exercise Notice pursuant to the foregoing sentence, thereafter Stelco may only deliver a single
additional Due Diligence Notice (regardless of how many Due Diligence Notices Stelco may have previously delivered) and a
single additional Exercise Notice, in each case, during the remainder of the Option Term. Notwithstanding Section 20,
each of USS and Stelco may publicly disclose Stelco’s withdrawal of the Exercise Notice pursuant to applicable Law or
any listing agreement with or rules of any applicable national securities exchange, trading market or listing authority, provided
that if such disclosure includes any information relating to the other Party or the reason for Stelco withdrawing the
Exercise Notice (other than a mere reference to the exercise of Stelco’s rights pursuant to, and with reference to,
this Section 3(d) or USS’s disclosures regarding the condition or operations of the Minntac Mine), such
other Party shall have the right to review and comment on any such disclosure and the disclosing Party will consider and
incorporate such comments in good faith prior to making such public disclosure.

 

    4

     

    

 

4.           
Representations and Warranties.

 

(a)         
USS Representations. USS hereby represents and warrants in favor of Stelco, as of the Effective Date and as of the
Exercise Date, as follows:

 

(i)  
          Existence and Good
Standing; Authority. USS (A) is a corporation duly organized and validly existing and
in good standing under the Laws of the State of Delaware and (B) has all requisite corporate power and authority to execute
and deliver this Agreement. All corporate acts and other proceedings required to be taken by USS to authorize the execution,
delivery and performance of this Agreement have been duly and properly taken.

 

(ii)     
      No Encumbrance. There
are no Encumbrances over, upon or with respect to USS’s rights (including the Option and the Option Interest) under
this Agreement. 

 

(iii)          
Execution and Delivery; Enforceability.
This Agreement has been duly executed and delivered by USS and, assuming that this Agreement has been duly authorized, executed
and delivered by Stelco, constitutes a legal, valid and binding obligation of USS enforceable against USS in accordance with its
terms (subject, as to enforcement (regardless of whether enforceability is considered in a proceeding in equity or at law), to
applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other Laws affecting creditors’ rights
generally or general principles of equity (the “General Enforceability Exceptions”)).

 

(iv)         
Consents. No Consent of, or Filing
with, any Governmental Authority is required to be obtained or made, as applicable, by or with respect to USS in connection with
(A) the execution and delivery of this Agreement, (B) the granting of the Option, (C) upon exercise of the Option, the consummation
of the transactions contemplated under this Agreement and (D) the compliance by USS with the terms and conditions of this Agreement.

 

(v)           No
Conflicts. The execution and delivery of this Agreement and the granting of the Option
by USS and, upon exercise of the Option, the consummation of the transactions contemplated under this Agreement, will not
conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, or give
rise to a right of termination, cancellation or acceleration of any obligation or to loss of a benefit under, or give rise to
any obligation of any Person to make any payment under, or give rise to the increased, additional, accelerated or
guaranteed rights or entitlements of any Person under any provision of (A) the certificate of incorporation or by-laws of
USS, (B) any Contract to which USS is a party or by which any of its properties or assets are bound or (C) any Law applicable
to the operations or the assets of USS, except, in the case of the foregoing, for any such conflict, violation, default,
termination, cancellation, acceleration, loss or other occurrence which would not reasonably be expected to prevent or
materially impede or delay the consummation of the transactions contemplated by this Agreement.

 

(vi)          
Solvency. USS is Solvent. No transfer
of property is being made, and no obligation is being incurred in connection with the transactions contemplated by this Agreement
and the Master Agreement, with the actual intent to hinder, delay or defraud either present or future creditors of USS.

 

(vii)         
No Other Representations or Warranties.
Except for the representations and warranties contained in this ‎Section 4(a) and in Article IV of the Master Agreement,
(A) neither USS nor any of its Affiliates or their respective Representatives or any other Person has made or makes any other express
or implied representation or warranty with respect to USS, the Option, the Minntac Mine, the Contributed Assets (as defined in
the Master Agreement) or with respect to any other information provided, or made available, to Stelco or any of its Affiliates
or their respective Representatives in connection with the transactions contemplated hereby and (B) neither USS nor any of its
Affiliates or their respective Representatives or any other Person has made or makes any representation or warranty, express or
implied, as to the prospects of the Minntac Mine or with respect to any forecasts, projections or business plans or other material
or information, whether made available to Stelco, its Affiliates or their respective Representatives in any virtual data room,
confidential information memorandum, management presentations, offering materials, site tours or visits, diligence calls or meetings
or any documents prepared by, or on behalf of, USS or any of its Affiliates or their respective Representatives, or Stelco or its
Affiliates or their respective Representatives, or any of Stelco’s potential financing sources in connection with Stelco’s
financing activities with respect to the transactions contemplated by this Agreement. Each of USS and its respective Affiliates
disclaims any and all representations and warranties, whether express or implied, except for the representations and warranties
contained in this ‎Section 4(a).

 

(b)         
Stelco Representations. Stelco represents and warrants in favor of USS, as of the Effective Date, as of each Payment
Date (solely with respect to the representations and warranties set forth in Section 4(b)(vi)) and as of the Exercise
Date, as follows:

 

(i)             Existence
and Good Standing; Authority. Stelco is a corporation duly organized and validly
existing and in good standing under the Laws of Canada. Stelco has all requisite corporate power and authority to execute and
deliver this Agreement. All corporate acts and other proceedings required to be taken by Stelco to authorize
the execution, delivery and performance of this Agreement have been duly and properly taken.

 

    5

     

    

 

(ii)           
Execution and Delivery; Enforceability.
This Agreement has been duly executed and delivered by Stelco and, assuming that this Agreement has been duly authorized, executed
and delivered by USS, constitutes a legal, valid and binding obligation of Stelco, enforceable against Stelco in accordance with
its terms (subject, as to enforcement (regardless of whether enforceability is considered in a proceeding in equity or at law))
to the General Enforceability Exceptions.

 

(iii)   
        Consents.
No Consent of, or Filing with, any Governmental Authority is required to be obtained or made, as applicable, by or with
respect to Stelco in connection with (A) the execution and delivery of this Agreement, (B) the receipt or exercise of the
Option, (C) upon exercise of the Option, the consummation of the transactions contemplated under this Agreement and (D) the
compliance by Stelco with the terms and conditions of this Agreement.

 

(iv)          
No Conflicts. The execution and delivery
of this Agreement and the receipt or exercise of the Option by Stelco and, upon exercise of the Option, the consummation of the
transactions contemplated under this Agreement, will not conflict with, or result in any violation of or default (with or without
notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation
or to loss of a benefit under, or give rise to any obligation of any Person to make any payment under, or give rise to the increased,
additional, accelerated or guaranteed rights or entitlements of any Person under any provision of (A) the certificate of incorporation
or by-laws of Stelco or (B) any Contract to which Stelco is a party or by which any of its properties or assets are bound or (C)
Law applicable to the operations or the assets of Stelco, except, in the case of the foregoing, for any such conflict, violation,
default, termination, cancellation, acceleration, loss or other occurrence which would not reasonably be expected to prevent or
materially impede or delay the consummation of the transactions contemplated by this Agreement.

 

(v)           
No Encumbrances. There are no Encumbrances
over, upon or with respect to Stelco’s rights (including the Option and the Option Interest) under this Agreement.

 

(vi)          
Solvency. Stelco is Solvent. No
transfer of property is being made, and no obligation is being incurred in connection with the making of any Partial Payment on
the applicable Payment Date or the transactions contemplated by this Agreement and the Master Agreement, with the actual intent
to hinder, delay or defraud either present or future creditors of Stelco.

 

    6

     

    

 

(vii)        
Financial Ability.

 

(A)             No
less than two Business Days prior to the Exercise Date, Stelco will have delivered to USS the executed debt commitment
letters (or such other financing commitments satisfactory to USS, acting reasonably), together with any exhibits, schedules,
annexes and term sheets thereto (or customary documentation relating to any such non-debt financing) (collectively, the
 “Commitment Letters”), pursuant to which the Debt Financing Sources (or such other financing
sources satisfactory to USS, acting reasonably) have committed to provide, subject to the terms and conditions set forth
therein, debt financing (or other financing satisfactory to USS, acting reasonably) for the transactions contemplated by the
Master Agreement in the aggregate amount set forth therein (the “Financing”); provided
that for purposes of this Section 4(b)(vii)(A), USS’s objection to any non-debt Financing shall be deemed
 “reasonable” hereunder to the extent that (x) Stelco has not provided USS with evidence, as may be reasonably
requested by USS, demonstrating that the non-debt Financing source has the financial capability, credit rating (or equivalent
metric to the debt financing source), creditworthiness, sufficient available capital reserves and other resources, in each
case to fund the amounts required pursuant to the applicable Commitment Letters, (y) the applicable Commitment Letters
(together with any exhibits, schedules, annexes and term sheets thereto) and the financing committed thereunder are subject
to conditionality provisions that provide less certainty of funding thereunder than if such commitments were debt commitments
subject to customary “SunGard” provisions with respect to limited conditionality and the availability of certain
funds or (z) all inter-creditor agreements, voting agreements, rights, preferences or privileges of any security have not yet
been already agreed in principle. Prior to the Exercise Date, Stelco will have also delivered to USS, on a confidential
basis, a true, correct and complete (other than the redaction noted below) copy of the fee letter or other documentation
relating to any non-debt Financing (the “Fee Letter”) which sets forth certain terms of the
Financing (it being understood that any such Fee Letter provided to USS may be redacted to omit confidential compensation
information and certain market flex provisions, none of which would adversely affect the amount or availability of the
Financing). On the Exercise Date, the Commitment Letters and the Fee Letter will be in full force and effect. On the Exercise
Date, the Commitment Letters and the Fee Letter, in the form delivered by Stelco to USS, will be legal, valid and binding
obligations of Stelco and, to Stelco’s knowledge, the other parties thereto, in each case, except as may be limited by
the General Enforceability Exceptions. On the Exercise Date, there will be no side letters, other agreements or
understandings or arrangements, including conditions precedent or other contingencies relating to the funding of the full
amount of the Financing and the only conditions precedent related to the obligations of the parties to the Commitment Letters
to fund the full amount of the Financing thereunder will be those expressly set forth in the Commitment Letters. As of
the Exercise Date, there will have been no event which will have occurred which, with or without notice, would constitute a
breach or default on the part of Stelco, and to Stelco’s knowledge, any other party thereto, under the Commitment
Letters. As of the Exercise Date, Stelco will have fully paid any and all commitment fees or other fees required by the
Commitment Letters and Fee Letter to be paid by it on or prior to the Exercise Date. On the Exercise Date, Stelco will not be
aware of any change, circumstance, fact, occurrence or event that, with or without notice, lapse of time or both, would
reasonably be expected to (1) make any of the assumptions or any of the statements set forth in the Commitment Letters or the
Fee Letter inaccurate, (2) result in any of the terms or conditions in any of the Commitment Letters or the Fee Letter not
being satisfied, (3) cause the Fee Letter or any of the Commitment Letters to be ineffective or (4) otherwise result in the
Financing not being available on a timely basis in order to consummate the transactions contemplated by the Master Agreement,
in each case, assuming the satisfaction or waiver of the conditions set forth in Article VI of the Master Agreement.

 

    7

     

    

 

(B)             
The Financing, when funded in accordance with the Commitment Letters will be sufficient to enable Stelco to pay any and
all amounts required to be paid by Stelco pursuant to the Master Agreement and the Ancillary Agreements (as defined in the Master
Agreement).

 

5.           
Financial Statements. 

 

(a)          
During the Option Term, Stelco may no more than once per calendar year and upon written notice to USS, request that USS
provide audited carve-out financial statements with respect to the Minntac Mine for the two years ended prior to the year in which
Stelco delivers its written request (“Financial Statements”). Upon receipt of Stelco’s written
request pursuant to this Section 5, USS shall (i) provide Stelco with an estimate for any and all out-of-pocket costs
and expenses incurred in the preparation and delivery of the Financial Statements (the “Financial Statement Costs”),
and (ii) use commercially reasonable efforts to prepare and deliver, or cause to be prepared and delivered, to Stelco the Financial
Statements as soon as reasonably practicable. The Financial Statements shall be prepared in accordance with either generally accepted
accounting principles in the United States or International Financial Reporting Standards, as requested by Stelco in its written
notice. 

 

(b)           Stelco
shall timely (but in no event later than 15 days after the presentment of an invoice by USS) reimburse USS in full for all
reasonable and documented Financial Statement Costs for each and every time that Stelco requests such Financial Statements.
Stelco’s failure to pay such amounts when due pursuant to this Section 5 shall constitute a material breach
of this Agreement entitling USS to terminate this Agreement and the Option upon written notice to Stelco, provided
that such failure to pay remains outstanding for a period of 15 days following the date on which USS provides written
notice of such failure to pay to Stelco.

 

    8

     

    

 

6.            Notice of Certain Events. During the Option Term, USS shall (a) promptly (but in no event less than three Business
Days after USS becomes aware) inform Stelco in writing of the occurrence of any Material Adverse Effect and (b) each calendar
year provide Stelco a written summary setting forth the proven and probable reserves and the production of the Minntac Mine.
From and after the delivery of an Exercise Notice, Stelco shall promptly (but in no event less than three Business Days after Stelco
becomes aware) inform USS in writing of any change in the Financing, including without limitation any adverse change that could
give rise to USS’s right to terminate this Agreement and the Option pursuant to Section 10(b)(vii) (assuming
such adverse change remained uncured or was incapable of cure).

 

7.           
Negotiation of Master Agreement. For the period commencing on the Effective Date and expiring at 11:59 p.m.
Eastern Time on the date that is 30 days following the Effective Date (which period may be extended by the Parties by mutual written
agreement), the Parties shall negotiate in good faith substantially final forms of the Master Agreement and the LLC Agreement.
Upon completion thereof, the final forms of the Master Agreement shall be attached hereto as Exhibit D with the LLC
Agreement attached as an exhibit thereto.

 

8.           
Conditions to Exercise and Obligations of USS. Stelco’s right to exercise the Option during the Option Term
and USS’s obligation to execute and deliver the Master Agreement pursuant to Section 3 will be subject to the
satisfaction or USS’s written waiver (to the extent permitted by Law) in its sole discretion, at or prior to the delivery
of the Exercise Notice, of each of the following conditions:

 

(a)           
(i) the representations and warranties of Stelco contained in ‎Section 4(b) shall be true and correct
in all respects as of the Exercise Date as though made on the Exercise Date (or, in the case of representations and warranties
that address matters only as of a particular date, as of such date); and (ii) Stelco shall have performed and complied in all material
respects with all agreements and covenants contained in this Agreement required to be performed or complied with by it prior to
or on the Exercise Date;

 

(b)           
no less than two Business Days prior to the Exercise Notice, Stelco will have delivered to USS the Commitment Letters and
the Fee Letter pursuant
to which the Debt Financing Sources have committed to provide the Financing; and

 

(c)           
Stelco shall not be in material default, subject to its rights to cure, under the Pellet Agreement.

 

9.           
Conditions to Obligations of Stelco. Stelco’s obligation to execute and deliver the Master Agreement pursuant
to Section 3 will be subject to the satisfaction or Stelco’s written waiver (to the extent permitted by Law)
in its sole discretion, at or prior to the delivery of the Exercise Notice, of each of the following conditions:

 

(a)            (i)
the representations and warranties of USS contained in ‎Section 4(a) shall be true and correct in all
respects as of the Exercise Date as though made on the Exercise Date (or, in the case of representations and warranties that
address matters only as of a particular date, as of such date); and (ii) USS shall have performed and complied in all
material respects with all agreements and covenants contained in this Agreement required to be performed or complied with by
it prior to or on the Exercise Date; and

 

    9

     

    

 

(b)            USS shall not be in material default, subject to its rights to cure, under the Pellet
Agreement.

 

10.         
Termination.

 

(a)         This Agreement and the Option will terminate automatically and without prior notice or any further action by
any Party upon the earliest to occur of the following:

 

(i)           
(A) the failure of Stelco to timely deliver an Exercise Notice in accordance with Section 3(a) prior to the
Option Termination, (B) Stelco’s failure to make any Partial Payment when due pursuant to Section 2 and which
is not otherwise funded by drawing on the LOC, provided, except with respect to the Partial Payment due on or before
the Final Payment Date, that such failure to make any Partial Payment remains outstanding on the date that is three Business Days
following the date on which USS delivers written notice of such failure to Stelco, or (C) Stelco’s withdrawal of an Exercise
Notice pursuant to Section 3(d) following the Option Termination; and

 

(ii)          
the execution and delivery of the Master Agreement.

 

(b)         
USS may terminate this Agreement at any time prior to (x) with respect to Sections 10(b)(i), 10(b)(ii), 10(b)(iii)
and 10(b)(iv) below, the earlier of the Exercise Date or the Option Termination and (y) with respect to Sections 10(b)(v),
10(b)(vi) and 10(b)(vii) below, the Option Termination, in each case, by written notice to Stelco:

 

(i)          
if Stelco is in breach of any of the representations, warranties, covenants or agreements in this Agreement (other than
with respect to Stelco’s obligation to make any Partial Payment when due pursuant to Section 2 of this Agreement,
which shall be addressed pursuant to Section 10(a)(i)(B)) and (A) such breach would cause any condition set forth
in Section 8 not to be satisfied and (B) such breach is incapable of cure on or prior to the Option Termination or,
if capable of cure, has continued without cure for a period of 30 days after delivery of USS’s notice of such breach; provided,
however, that (1) USS shall have given Stelco written notice, delivered at least 30 days prior to such termination
(or promptly, if such notice is given within 30 days of the Option Termination), stating USS’s intention to terminate this
Agreement pursuant to this Section 10(b)(i) and the basis for such termination and (2) USS shall not have the right
to terminate this Agreement pursuant to this Section 10(b)(i) if USS is then in material breach of this Agreement;

 

(ii)          if
Stelco is in material breach of any of the representations, warranties, covenants or agreements in the Pellet Agreement and
such material breach is incapable of cure on or prior to the Option Termination or, if capable of cure, has continued without
cure for a period of 30 days after delivery of USS’s notice of such material breach; provided, however,
that (A) USS shall have given Stelco written notice, delivered at least 30 days prior to such termination (or promptly, if
such notice is given within 30 days of the Option Termination), stating USS’s intention to terminate this Agreement
pursuant to this Section 10(b)(ii) and the basis for such termination and (B) USS shall not have the right to
terminate this Agreement pursuant to this Section 10(b)(ii) if USS is then in material breach of the Pellet
Agreement;

 

    10

     

    

 

(iii)        
if USS enters into a Contract with a third party to sell in excess of a majority of the ownership of the Minntac Mine, regardless
of the form or structure of transaction (whether alone, in a series of related transactions or in connection with the sale of some
or all of USS’s other iron ore mining assets), provided, however, that, if USS enters into such
Contract after the Final Payment Date, then prior to providing notice of termination pursuant to this Section 10(b)(iii),
USS will use commercially reasonable efforts to provide for survival of this Agreement following such transaction; provided
further, however, that the foregoing shall in no way prohibit, limit, delay or inhibit USS’s right
to enter into or consummate such transaction;

 

(iv)        
pursuant to Section 10(d);

 

(v)         
if Stelco fails to deliver a duly-executed copy of the Master Agreement within the period specified in Section 3(b)
following Stelco’s delivery of the Exercise Notice in accordance with Section 3(a);

 

(vi)        
upon the announcement by Stelco of a Change of Control to a Prohibited Transferee; or

 

(vii)       
following delivery of the Exercise Notice, if any material adverse change in the Financing occurs, including, without limitation:

 

(A)         
the occurrence of any event which, with or without notice, would constitute a breach or default on the part of Stelco, and
to Stelco’s knowledge, any other party thereto, under the Commitment Letters;

 

(B)          
Stelco’s failure to fully pay any and all commitment fees or other fees required by the Commitment Letters and Fee
Letter to be paid by it on or after the Exercise Date; or 

 

(C)          
any other change, circumstance, fact, occurrence or event that, with or without notice, lapse of time or both, would (1)
make any of the assumptions or any of the statements set forth in the Commitment Letters or the Fee Letter inaccurate or (2) result
in any of the terms or conditions in any of the Commitment Letters or the Fee Letter not being satisfied, 

 

in
each case, that would reasonably be expected to either (x) cause the Fee Letter or any of the Commitment Letters to be ineffective
or (y) otherwise result in the Financing not being available on a timely basis in order to consummate the transactions
contemplated by the Master Agreement, and in each case, assuming the satisfaction or waiver of the conditions set forth in Article
VI of the Master Agreement; provided,
however, that USS shall have given Stelco written notice, delivered at least seven Business Days prior to such termination,
stating USS’s intention to terminate this Agreement and the Option pursuant to this Section 10(b)(vii); provided,
further that the basis for such termination is incapable of cure or if capable of cure, has continued without cure
for the seven Business Day period after delivery of USS’s notice of intention to terminate this Agreement and the Option
pursuant to this Section 10(b)(vii).

 

    11

     

    

 

(c)         
Stelco may terminate this Agreement at any time prior to the earlier of the Exercise Date or the Option Termination by written
notice to USS:

 

(i)          
if USS is in breach of any of the representations, warranties, covenants or agreements in this Agreement and (A) such breach
would cause any condition set forth in Section 9 not to be satisfied and (B) such breach is incapable of cure on or
prior to the Option Termination or, if capable of cure, has continued without cure for a period of 30 days after delivery of Stelco’s
notice of such breach; provided, however, that (1) Stelco shall have given USS written notice, delivered
at least 30 days prior to such termination (or promptly, if such notice is given within 30 days of the Option Termination), stating
Stelco’s intention to terminate this Agreement pursuant to this Section 10(c)(i) and the basis for such termination
and (2) Stelco shall not have the right to terminate this Agreement pursuant to this Section 10(c)(i) if Stelco is
then in material breach of this Agreement;

 

(ii)          
if USS is in material breach of any of the representations, warranties, covenants or agreements in the Pellet Agreement
and such material breach is incapable of cure on or prior to the Option Termination or, if capable of cure, has continued without
cure for a period of 30 days after delivery of Stelco’s notice of such material breach; provided, however,
that (A) Stelco shall have given USS written notice, delivered at least 30 days prior to such termination (or promptly, if such
notice is given within 30 days of the Option Termination), stating Stelco’s intention to terminate this Agreement pursuant
to this Section 10(c)(ii) and the basis for such termination and (B) Stelco shall not have the right to terminate this
Agreement pursuant to this Section 10(c)(ii) if Stelco is then in material breach of the Pellet Agreement;

 

(iii)        
upon the announcement by USS of a Change of Control to a Prohibited Transferee; or

 

(iv)        
if USS fails to deliver a duly-executed copy of the Master Agreement within the period specified in Section 3(b)
following Stelco’s delivery of the Exercise Notice in accordance with Section 3(a).

 

    12

     

    

 

(d)          
If Stelco fails to deliver the Exercise Notice upon the expiry of the Due Diligence Period, Stelco shall pay USS $20,000,000
(the “Due Diligence Fee”) within two Business Days after the expiration of the Due Diligence Period,
by wire transfer of immediately available United States funds to an account designated in writing by USS. For the avoidance of
doubt, the Due Diligence Fee shall be payable each time Stelco delivers a Due Diligence Notice and fails to deliver the Exercise
Notice prior to the expiry of the Due Diligence Period. In the event Stelco either (i) delivers a third Due Diligence Notice (after
failing to deliver an Exercise Notice following the prior two Due Diligence Notices) or (ii) delivers a Due Diligence Notice after
exercising its right to withdraw an Exercise Notice pursuant to Section 3(d) and, in each case, fails to deliver the
Exercise Notice prior to the expiry of the applicable Due Diligence Period, then in addition to Stelco’s obligation to make
another payment of the Due Diligence Fee with respect to such expired Due Diligence Period, USS shall have the right at any time
thereafter, to immediately terminate this Agreement and the Option upon written notice to Stelco. Stelco’s failure to pay
any Due Diligence Fee when due pursuant to this Section 10(d) shall constitute a material breach of this Agreement
entitling USS, at any time after such breach, to immediately terminate this Agreement and the Option upon written notice to Stelco.
Notwithstanding the foregoing, Stelco shall not be required to pay a Due Diligence Fee if: (i) USS has not materially complied
with its obligations to deliver the documentation required in the Due Diligence Notice pursuant to Section 3(c)(i);
or (ii) in the conduct of its confirmatory due diligence, Stelco becomes aware (for the first time) of the occurrence any Material
Adverse Effect (other than as has been publicly disclosed or filed by USS with the U.S. Securities and Exchange Commission and
publicly available prior to Stelco’s delivery of the Due Diligence Notice, provided that USS has complied with
its obligations pursuant to Section 6(a) in respect of such Material Adverse Effect).

 

(e)           If
this Agreement and the Option terminate pursuant to this Section 10, this Agreement and the Option shall
forthwith become void and be of no effect, without any Liability on the part of either Party or its Affiliates, except as set
forth in this Section 10(e); provided, that the provisions contained in Section 3(d), Section 5(b), Section 10(d),
this Section 10(e), Sections 11 through 25 and Exhibit A shall survive and remain in full
force and effect. If this Agreement and the Option are terminated by USS pursuant to Sections 10(b)(v) or 10(b)(vii),
then Stelco shall, within three Business Days following the effective date of such termination, pay to USS as liquidated
damages in connection with any such termination, an amount equal to $20,000,000 by wire transfer of immediately available
United States funds to an account designated in writing by USS. For the avoidance of doubt, Stelco’s obligation to pay
liquidated damages pursuant to the foregoing sentence shall be in addition to, and shall in no way limit, Stelco’s
obligation to pay any Due Diligence Fee(s) or any expense reimbursement that may be due and owing or become due and owning
pursuant to Section 5(b). The
termination of this Agreement and the Option shall have no effect on the obligations of the Parties under the Pellet
Agreement unless this Agreement and the Option are terminated by USS solely pursuant to Section 10(b)(iii), in
which case, at USS’s option, either (i) the Parties shall amend the term of the Pellet Agreement to expire upon
the final day of the 2033 Shipping Season (with a Base Price Per Net Ton (as defined in the Pellet Agreement) in the amount
set forth in Annex 2 for any Shipping Seasons following the 2027 Shipping Season) or
(ii) (A) USS shall, within five Business Days following the effective date of such termination, pay to Stelco an
amount equal to the Termination Fee by wire transfer of immediately available United States funds to an account designated in
writing by Stelco and (B) the Parties shall amend the Pellet Agreement to (1) terminate USS’s obligation to provide
Minntac Flux Pellets and Minntac Acid Pellets (as each are defined in the Pellet Agreement) after the Extension Date (with a
Base Price Per Net Ton in the amount set forth in Annex 2 for any Shipping Seasons following the 2027 Shipping
Season) and (2) reduce the total tonnage required to be sold under the Pellet Agreement based on the average percentage
of Minntac Flux Pellets and/or Minntac Acid Pellets sold under the Pellet Agreement during previous calendar years prior to
the Extension Date, based on the total amount of iron ore pellets sold. Notwithstanding anything to the contrary herein, if
this Agreement and the Option terminate pursuant to this Section 10 for any reason (at any time), other than a
termination by
USS solely pursuant to Section 10(b)(iii) if USS elects to pay Stelco the Termination Fee,
the provisions contained in Section 2 shall survive and remain in full force and effect and the Payment
Date of each remaining Partial Payment shall be immediately accelerated and become due and payable to USS. For
the avoidance of doubt, other than in connection with the termination of this Agreement and the Option pursuant to Section 10(b)(iii),
USS shall have no obligation to reimburse, return, credit, off-set or otherwise pay to Stelco or its Affiliates any
Termination Fee or all or any portion of the Payment. In the event this Agreement and the Option are terminated pursuant to Sections
10(b)(iii), 10(b)(v) or 10(b)(vii), this Section 10 will provide the sole and exclusive
remedies of the Parties with respect to the any breaches by either Party of any covenant, agreement, representation or
warranty contained in this Agreement. The provision for payment of liquidated damages (and/or the extension of the Pellet
Agreement) in this Section 10 has been included because, in the event of any breach or termination of this
Agreement pursuant to Sections 10(b)(iii), 10(b)(v) or 10(b)(vii) by the applicable Party, the actual
damages to be incurred by the other Party can reasonably be expected to approximate the amount of liquidated damages provided
for herein (and/or the value to be derived from any extension of the Pellet Agreement) and because the actual amount of
damages would be difficult, if not impossible, to measure accurately. Other than in connection with a termination pursuant to Sections
10(b)(iii), 10(b)(v) or 10(b)(vii), nothing in this Agreement shall limit either Party’s right to
seek specific performance or any other remedy to which they are entitled at law or in equity in respect of any breaches by
the other Party of any covenant, agreement, representation or warranty contained in this Agreement.

 

    13

     

    

 

11.           
Change of Control. This Agreement and the Option will continue in full force and effect following a Change of Control
of either Party (subject to the right of USS and Stelco to terminate this Agreement pursuant to Section 10(b)(vi)
or 10(c)(iii), respectively, in the case of a Change of Control to a Prohibited Transferee); provided, however,
that in the case of a Change of Control of Stelco to a Limited Transferee (including any such Change of Control in connection
with a plan of merger, consolidation, reorganization, liquidation or dissolution or filing of a petition in bankruptcy, in any
case, under any provisions of bankruptcy Law), the Parties acknowledge and agree that, upon exercise of the Option following such
Change of Control, the Parties shall work in good faith to address any concerns raised by USS as a result of such Change of Control
and if the Parties are unable to address such concerns within 45 days thereafter, the Parties will revise the form of LLC Agreement
to remove (a) any requirement therein (whether in Article V thereof or otherwise) to obtain unanimous approval of the Board
(as defined in the LLC Agreement) for actions to be taken by the to-be-formed Company (as defined in the LLC Agreement) or (b)
the right of Stelco or its Affiliates to appoint the Stelco Nominee (as defined in the LLC Agreement); provided,
further, however, that in the event the Person Controlling Stelco following such Change of Control
would, at any time before Stelco’s exercise of the Option, no longer be deemed to be a Limited Transferee (based on the
list set forth in Exhibit E), then the Parties shall restore the provisions of the form of LLC Agreement first attached
to this Agreement without inclusion of the changes contemplated by this Section 11.

 

    14

     

    

 

12.           
Confidentiality. The Parties agree that that certain Mutual Confidentiality Agreement, dated November 26, 2018, by
and between the Parties (the “Confidentiality Agreement”) shall automatically extend until the earlier
of (a) the Parties’ execution and delivery of the Master Agreement and (b) the second anniversary of the Option Termination.

 

13.           
Notices.
Whenever it is provided herein that any notice, request, Consent or other communication shall or
may be given to or served upon either Party by the other Party, or whenever either Party desires to give or serve upon the other
Party any communication with respect to this Agreement, each such notice, request, Consent or other communication shall be in writing
and shall be deemed to have been validly served, given or delivered, (a) on the day when the receipt is signed after deposit with
an internationally recognized courier with all charges prepaid through return receipt requested service or service with tracking
record and requiring signature upon receipt, (b) when delivered, if hand-delivered by messenger, (c) upon actual receipt by the
party to whom such notice is required to be given if sent by registered mail or (d) on the date sent by electronic transmission,
in each case if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business
hours of the recipient, all of which shall be addressed to the Party to be notified and sent to the address set forth in this Section 13
or to such other address as may be substituted by notice given by the applicable Party as herein provided:

 

to USS:

 

United States Steel Corporation

600 Grant Street

Pittsburgh, PA 15219

Attention: Mark Furry, Associate
General Counsel – Corporate

Phone: +1 (412) 433-2813

Email: mwfurry@uss.com

 

with a copy to (which shall not
constitute notice to USS):

 

Jones Day

500 Grant Street

Pittsburgh, Pennsylvania 15219

Attention: David A. Grubman

Phone: +1 (412) 394-7223

Email: dgrubman@jonesday.com

 

    15

     

    

 

to Stelco:

 

Stelco Inc.

386 Wilcox Avenue

Hamilton, Ontario

L8N 3T1

Attention: Paul A. Simon, General
Counsel

Phone: +1 (905) 577-4434

Email: paul.simon@stelco.com

 

with a copy to (which shall not
constitute notice to Stelco):

 

McCarthy Tétrault LLP

66 Wellington Street West

Suite 5300, TD Bank Tower Box
48

Toronto ON M5K 1E6

Canada

Attention: Andrew Parker and

Eva Bellissimo

Phone: +1 (416) 601-7939 and

+1 (416) 601-8968

Email: aparker@mccarthy.ca and

ebellissimo@mccarthy.ca

 

14.          
Entire
Agreement. This Agreement constitutes the sole and entire agreement of the Parties with respect to the subject matter
contained herein and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect
to such subject matter.

 

15.           
Successor and Assigns; Assignment. This Agreement shall
be binding on and shall inure to the benefit of and be enforceable by the Parties and their respective successors and permitted
assigns. Except as otherwise provided herein, (a) neither Party may assign, transfer, hypothecate, novate, mortgage, charge or
otherwise convey its rights, benefits, obligations or duties hereunder without the prior written consent of the other Party; (b) any
such purported assignment, transfer, hypothecation, novation, mortgage, charge or other conveyance by either Party without the
prior written consent of the other Party shall be void ab initio; and (c) no assignment permitted or consented to hereby
shall release either Party from any Liability under this Agreement unless expressly provided for in such consent. Notwithstanding
the foregoing sentence, (y) either Party may assign this Agreement to an Affiliate of such Party without the prior written consent
of the other Party, provided, however, that any such assignment shall not be permitted unless the transferee
or assignee agrees in writing to be bound by this Agreement, including with respect to payment obligations hereunder, and (z) subject
to Stelco’s rights under Section 10(e), USS may assign this Agreement to any third party that acquires a
majority of the ownership of the Minntac Mine, regardless of the form or structure of transaction (whether alone, in a series of
related transactions or in connection with the sale of some or all of USS’s other iron ore mining assets).

 

    16

     

    

 

16.         
No Third-Party Beneficiaries. This Agreement is for the sole
benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is
intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever, under
or by reason of this Agreement.

 

17.         
Headings; Construction. The headings in this Agreement
are for reference only and shall not affect the interpretation of this Agreement. All references herein to the terms “Section,”
 “clause,” “Annex,” and “Exhibit” are references to the Sections, clauses, Annexes and Exhibits
to this Agreement unless otherwise specified.

 

18.         
Amendments and Modifications; Waivers.

 

(a)           
No amendment, modification or variation, of any provision of this Agreement shall in any event be effective except by written
agreement making specific reference to the applicable provision to be amended, modified or varied, in each case duly executed by
each Party. 

 

(b)           
The failure of either Party, at any time or times, to require strict performance by the other Party of any provision of
this Agreement shall not waive, affect or diminish any right of such Party thereafter to demand strict compliance and performance
herewith and no failure or delay by a Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof
nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. Any suspension or waiver of any provision of this Agreement shall not suspend, waive or affect any other provision
of this Agreement whether the same is prior or subsequent thereto. None of the undertakings, agreements, representations, warranties
or covenants of either Party contained in or contemplated by any other provision of this Agreement shall be deemed to have been
suspended or waived by the other Party, unless such waiver or suspension is by an instrument in writing signed by an officer of
or other authorized employee of such Party and directed to the other Party specifying such suspension or waiver.

 

19.        
Severability.
If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term
or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable,
the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely
as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated
to the greatest extent possible.

 

20.         Publicity.
The initial press releases regarding the announcement of this Agreement shall be joint, and thereafter, USS and Stelco shall
not, and shall not permit their respective Affiliates or their respective officers, directors, managers, employees, counsel,
consultants, agents or representatives (the “Representatives”) to, issue or cause the publication
of any press release or other announcement with respect to this Agreement or the transactions contemplated hereby without the
prior written consent of the other Party except (a) as required by applicable Law, (b) as required by any listing agreement
with or rules of any applicable national securities exchange, trading market or listing authority, (c) as may be requested by
a Governmental Authority or (d) as required by any collective bargaining agreement to which either Party is subject, in which
case (in the cases of clauses (a) through (d) above), the Party required to make such press release or announcement shall
allow the other Party a reasonable opportunity to review and comment on such press release or announcement in advance of
publication, to the extent practicable.

 

    17

     

    

 

21.          
Governing Law. In all respects, this Agreement and any dispute shall be governed
by, and construed and enforced in accordance with, the Laws of the State of Delaware, without giving effect to any choice of law
rules that would cause the application of Laws of any jurisdiction other than those of the State of Delaware.

 

22.          
Jurisdiction and Venue. The Parties (a) hereby irrevocably and unconditionally
submit to the jurisdiction of the United States District Court for the Southern District of New York for the purpose of any Claim,
suit or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any Claim, suit or other proceeding
arising out of or based upon this Agreement except in the United States District Court for the Southern District of New York, and
(c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such Claim, suit or other proceeding,
any Claim that it is not subject personally to the jurisdiction of the above-named court, that its property is exempt or immune
from attachment or execution, that the Claim, suit or other proceeding is brought in an inconvenient forum, that the venue of the
Claim, suit or other proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such
court.

 

23.          
WAIVER OF JURY TRIAL. EACH PARTY HEREBY WAIVES AND COVENANTS THAT NEITHER IT NOR ANY OF ITS AFFILIATES SHALL ASSERT
(WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE, ACTION, CLAIM,
CAUSE OF ACTION, SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR INVESTIGATION ARISING OUT OF OR BASED UPON THIS
AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED HEREBY,
IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) SUCH PARTY HAS CONSIDERED
THE IMPLICATIONS OF THIS WAIVER, (B) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY AND (C) SUCH WAIVER CONSTITUTES A MATERIAL INDUCEMENT
UPON WHICH SUCH PARTY IS RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT. EITHER PARTY MAY FILE AN ORIGINAL COUNTERPART OR
A COPY OF THIS SECTION 23 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH PARTY TO THE WAIVER OF ITS RIGHT
TO TRIAL BY JURY.

 

24.          
Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which shall together be deemed to be one and the same agreement. A signed
copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same
legal effect as delivery of an original signed copy of this Agreement.

 

25.          
No
Strict Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the
event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the
Parties, and no presumption or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any
of the provisions of this Agreement.

 

[signature
page follows]

 

    18

     

    

 

IN WITNESS WHEREOF,
the Parties have executed this Option Agreement on the date first written above.

 

	 	UNITED STATES STEEL CORPORATION
	 	 	 
	 	By:	/s/ Richard Fruehauf
	 	 	Name: Richard Fruehauf
	 	 	Title: Senior Vice President - Strategic Planning and Chief Strategy & Development Officer

 

[SIGNATURES CONTINUE ON THE FOLLOWING
PAGE]

 

[Signature Page
to Option Agreement] 

 

     

     

    

 

	 	STELCO INC.
	 	 	 
	 	By: 	/s/ Alan Kestenbaum
	 	 	Name: Alan Kestenbaum
	 	 	Title: Executive Chairman and CEO

 

[Signature Page
to Option Agreement]

 

     

     

    

 

Exhibit A

Definitions

 

“Acceleration
Event” has the meaning set forth in Section 2.

 

“Affiliate”
means, with respect to any Person, any other Person directly or indirectly Controlling, Controlled by or under common Control with,
such Person.

 

“Agreement”
has the meaning set forth in the Preamble.

 

“Business
Day” means each day other than a Saturday, Sunday or other day on which commercial banks in New York, New York, or
Toronto, Canada are authorized or required by Law to close.

 

“CFIUS”
has the meaning set forth in Exhibit E.

 

“Change
of Control” shall mean, with respect to either Party: (a) any transaction or series of transactions, that would result
in, directly or indirectly (i) the acquisition of Control of that Party by an unaffiliated third Person that did not Control such
Party prior to such transaction(s) or (ii) any unaffiliated third Person owning or holding all or substantially all of the assets
of such Party determined on a fair market value basis of the assets of such Party; or (b) a merger, consolidation, recapitalization
or sale of equity interests of such Party by such Party or the holders of its equity interests to any unaffiliated third Person
or similar transaction or series of transactions, in each case that results in such unaffiliated third Person Controlling such
Party (or the surviving or resulting entity of such merger or consolidation or, if such Person or surviving or resulting entity
is a direct or indirect wholly owned Subsidiary of an ultimate parent entity, such ultimate parent entity) that did not Control
such Party prior to such merger, consolidation, recapitalization, sale or similar transaction.

 

“Claim”
means all causes of action, claims, charges, complaints, demands, rights and privileges against third parties, whether liquidated
or unliquidated, fixed or contingent, choate or inchoate, matured, unmatured, disputed, undisputed, civil, criminal, administrative,
investigative, informal or other, at law or in equity.

 

“Commitment
Letters” has the meaning set forth in Section 4(b)(vii)(A).

 

“Confidentiality
Agreement” has the meaning set forth in Section 12.

 

“Consent”
means an authorization, consent, approval, permit or license issued by, or waiver from, any Governmental Authority or other Person.

 

“Contract”
means each agreement, option, lease, license, cross-license, sale, commitment and other instrument of any kind, whether written
or oral, that is legally binding or purports to be legally binding.

 

“Control”
(including, with correlative meanings, the terms “Controlling,” “Controlled by”
or “under common Control with”), as used with respect to any Person at a given time:

 

(a) holding, whether directly or indirectly,
as owner or other beneficiary (other than solely as the beneficiary of an unrealized security interest), securities or ownership
interests of that Person carrying votes or ownership interests sufficient to elect or appoint 50% or more of the individuals who
are responsible for supervision or management of that Person, or (b) the exercise of de facto control of that Person, including
the power to direct or cause the direction of the management or policies of a Person, or the exercise of negative control through
the right to approve or reject decisions on material items, whether direct or indirect and whether through the ownership of securities
or ownership interest by Contract, trust or otherwise.

 

     

     

    

 

“Debt Financing
Sources” means the Persons that have committed to provide or have otherwise entered into agreements in connection
with the Financing, including the parties that delivered the Commitment Letters and any joinder agreements or credit agreements
entered into pursuant thereto or relating thereto, together with their Affiliates and Representatives involved in the Financing
and their successors and assigns.

 

“Due Diligence
Fee” has the meaning set forth in Section 10(d).

 

“Due Diligence
Notice” has the meaning set forth in Section 3(c)(i).

 

“Due Diligence
Period” has the meaning set forth in Section 3(c)(i).

 

“Effective
Date” has the meaning set forth in the Preamble.

 

“Encumbrance”
means, with respect to any asset or right, any lien, mortgage, pledge, deed of trust, hypothecation, right of others, Claim, security
interest, encumbrance, lease, sublease, license, interest, option, charge or other similar restriction or limitation of any nature
whatsoever in respect of such asset or right.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Exercise
Date” has the meaning set forth in Section 3(b).

 

“Exercise
Notice” has the meaning set forth in Section 3(a).

 

“Existing
Confidentiality Agreements” means that certain (a) Mutual Confidentiality Agreement, dated November 26, 2018, as
amended by that certain Amendment to Mutual Confidentiality Agreement, dated March 26, 2019, by and between USS and Stelco and
(b) Clean Team Agreement, dated July 3, 2019, by and between USS and Stelco.

 

“Extension
Date” means the later of (a) the day that is 18 months after the last day of the outstanding Shipping Season in which
USS delivers notice of termination pursuant to Section 10(b)(iii) and (b) the last day of the Shipping Season that
follows the outstanding Shipping Season in which USS delivers notice of termination pursuant to Section 10(b)(iii).

 

“Fee Letter”
has the meaning set forth in Section 4(b)(vii)(A).

 

     

     

    

 

“Filing”
means a registration or filing with, or notice to, any Governmental Authority or other Person.

 

“Final
Payment Date” means December 31, 2020.

 

“Financial
Statement Costs” has the meaning set forth in Section 5.

 

“Financial
Statements” has the meaning set forth in Section 5.

 

“Financing”
has the meaning set forth in Section 4(b)(vii)(A).

 

“General
Enforceability Exceptions” has the meaning set forth in Section 4(a)(iii).

 

“Governmental
Authority” means any United States or non-United States federal, territorial, state or local governmental authority,
quasi-governmental authority, instrumentality, court, government or self-regulatory organization, commission, tribunal or organization
or any regulatory, administrative or other agency, or any political or other subdivision, department or branch of any of the foregoing
or any United States or non-United States court or arbitrator.

 

“Law”
means any federal, state, local or foreign statute, law (including common law), ordinance, rule, administrative interpretation,
regulation, measure, order, writ, injunction, directive, judgment, decree, notice or other requirement of any Governmental Authority.

 

“Liability”
means, with respect to any Person, any liability or obligation of such Person of any kind, character or description, whether known
or unknown, absolute or contingent, asserted or unasserted, accrued or unaccrued, liquidated or unliquidated, secured or unsecured,
joint or several, due or to become due, vested or unvested, absolute, contingent, executory, determined, determinable or otherwise
and whether or not the same is required to be accrued on the financial statements of such Person.

 

“Limited
Transferee” means any Person listed on the list attached hereto as Exhibit F.

 

“LLC Agreement”
means the LLC Agreement to be attached as an exhibit to the Master Agreement

 

“Master Agreement”
means the Master Agreement substantially in the form attached hereto as Exhibit D upon completion thereof pursuant
to Section 7.

 

“Material
Adverse Effect” means any change, event, effect, circumstance, occurrence result or state of facts that has a
material adverse effect on the business, results of operations or condition (financial or otherwise) of the Minntac Mine,
taken as a whole, other than any change, event, effect, circumstance or occurrence that results from, arises out of or is
attributable or related to, any of the following (and no such changes, events, effects, circumstances, occurrences, results
or state of facts will be deemed, either alone or in combination, to constitute, or be taken into account in determining
whether there has been or may be, a Material Adverse Effect): (a) general economic conditions (including changes in (i)
financial or market conditions, (ii) currency exchange rates, (iii) prevailing interest rates or credit markets, (iv) the
price of iron ore or steel or (v) trade disputes or the imposition or removal of tariffs); (b) changes (or proposed changes)
in the legal, Tax, regulatory or political conditions (including changes in Law or in the interpretation or application of
Law, including as it relates to items such as tariffs, trade agreements or treaties); (c) changes or proposed changes in GAAP
or other applicable accounting standards or the interpretations or applications thereof; (d) conditions in or affecting the
iron ore mining or steel manufacturing industries, including trade disputes or tariffs; (e) conditions resulting from natural
disasters, floods, wildfires, storms, lightning, hail storms, blizzards, tornadoes, droughts, cyclones, artic frosts,
mudslides, severe weather resulting in the freezing of lakes and other waterways or bodies of water, acts of God or other
weather-related or natural conditions, manmade disasters (to the extent not caused by USS or its Affiliates), pandemics,
epidemics or disease outbreak (including the COVID-19 virus) or the commencement, occurrence, continuation or intensification
of any war (whether or not declared), sabotage, armed hostilities, civil unrest, military attacks or acts of terrorism or
declaration of national emergency; (f) any failure by the Minntac Mine to meet budgets, plans, projections or forecasts
(whether internal or otherwise) for any period (it being understood that the underlying causes of the failure to meet such
budgets, plans, projections or forecasts may be taken into account in determining whether a Material Adverse Effect has
occurred unless such causes are otherwise excepted under this paragraph); (g) the negotiation, execution, announcement,
performance, pendency or consummation of this Agreement, the transactions contemplated hereby, the identity of Stelco or any
of its Affiliates or any acts or omissions of Stelco or its Affiliates or any communication by Stelco or any of its
Affiliates, including in respect of its plans or intentions with respect to the Minntac Mine, including the impact thereof on
relationships, contractual or otherwise, with suppliers, distributors, partners, labor unions or employees; or (h) any labor
strike, lockout or work stoppage, pending or threatened, against the Minntac Mine following the announcement of the
transactions contemplated by this Agreement; provided, however, that with respect to clauses (a)
through (e) above, such matters will be considered only to the extent that they disproportionately affect the Minntac Mine as
compared to similarly situated operation in the iron ore mining industries.

 

     

     

    

 

“Minntac
Mine” has the meaning set forth in the Recitals.

 

“Option”
has the meaning set forth in Section 1.

 

“Option
Interest” has the meaning set forth in the Recitals.

 

“Option
Term” has the meaning set forth in Section 1.

 

“Option
Termination” has the meaning set forth in Section 1.

 

“Partial
Payment” has the meaning set forth in Section 2.

 

“Party”
or “Parties” has the meaning set forth in the Preamble.

 

“Payment”
has the meaning set forth in the Recitals.

 

“Payment
Date” has the meaning set forth in Section 2.

 

“Pellet
Agreement” has the meaning set forth in the Recitals.

 

     

     

    

 

“Person”
or “Persons” means any natural person and any corporation, firm, partnership, trust, estate, limited
liability company, sole proprietorship, unincorporated society or other entity resulting from any form of association.

 

“Prohibited
Transferee” means any Person listed on the list attached hereto as Exhibit E.

 

“Representatives”
has the meaning set forth in Section 20.

 

“Sanctions”
has the meaning set forth in Exhibit E.

 

“Shipping
Season” means the normal annual shipping season of the Minntac Mine for any given calendar year which begins on March
15 of such calendar year and ends on January 31 of the following calendar year.

 

“Solvent”
means that, as of any date of determination with respect to any Person: (a) the sum of the debt (including contingent Liabilities)
of such Person and its Subsidiaries, taken as a whole, does not exceed the present fair saleable value of the present assets of
such Person and its Subsidiaries, taken as a whole; (b) the capital of such Person and its Subsidiaries, taken as a whole, is not
unreasonably small in relation to the business of such Person and its Subsidiaries, taken as a whole; and (c) such Person and its
Subsidiaries, taken as a whole, do not have debts, including current obligations, beyond their ability to pay or refinance such
debts as they mature in the ordinary course of business; provided, however, for purposes hereof, the
amount of any contingent Liability at any time shall be computed as the amount that, in light of all of the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to become an actual or matured Liability.

 

“Stelco”
has the meaning set forth in the Preamble.

 

“Subsidiary”
means, with respect to any Person, any corporation, limited liability company or other similar entity as to which more than 50%
of the outstanding capital stock or other securities having voting rights or power is owned or controlled, directly or indirectly,
by such Person and/or by one or more of such Person’s direct or indirect subsidiaries.

 

“Termination
Fee” means:

 

(a)       if
the date on which USS delivers notice of termination pursuant to Section 10(b)(iii) occurs prior to the Final Payment
Date, an amount equal to the aggregated Partial Payments paid by Stelco as of such date;

 

(b)       if
the date on which USS delivers notice of termination pursuant to Section 10(b)(iii) occurs after the Final Payment
Date but prior to the last day of the 2022 Shipping Season, an amount equal to $100,000,000; or

 

(c)       if
the date on which USS delivers notice of termination pursuant to Section 10(b)(iii) occurs on or after the last day
of the 2022 Shipping Season but prior to the Option Termination, an amount calculated with respect to the total enterprise value
of the entirety of the Minntac Mine (as determined by the consideration to be paid by the purchaser in the sale transaction contemplated
by Section 10(b)(iii)) (the “Mine Valuation”) as follows:

 

     

     

    

 

(i)       if
the Mine Valuation is $2,400,000,000 or greater, the Termination Fee will be an amount equal to the fair market value of the Option
immediately prior to the time USS delivers notice of termination pursuant to Section 10(b)(iii), as determined by an
independent third party evaluator of national recognition appointed jointly by the Parties (each acting reasonably); provided,
that in no event will the Termination Fee exceed $120,000,000, regardless of such determination; or

 

(ii)       if
the Mine Valuation is less than $2,400,000,000, the Termination Fee will be an amount equal to the product of $100,000,000 multiplied
by a fraction, the numerator of which is the Mine Valuation and the denominator of which is $2,400,000,000.

 

“USS”
has the meaning set forth in the Preamble.

 

     

     

    

 

Exhibit B

Form of Exercise Notice

 

(See attached)

 

     

     

    

 

Exhibit C

Form of Due Diligence Notice

 

(See attached)

 

     

     

    

 

Exhibit D

Form of Master Agreement

 

(See attached)

 

     

     

    

 

Exhibit E

List of Prohibited Transferees

 

		1.	Any Person:

 

(a)          
that is currently the subject or the target of any sanctions administered or enforced by the U.S. government, (including,
without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State
and including, without limitation, the designation as a “specially designated national” or “blocked person”),
the Canadian Government (including, without limitation, Global Affairs Canada and the Royal Canadian Mounted Police), the United
Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively,
 “Sanctions”);

 

(b)          
that is located, organized or resident in a country or territory that is the subject or target of Sanctions, including,
without limitation, Crimea, Iran, North Korea and Syria; or

 

(c)          
whose ownership interest in Stelco following a Change of Control, in the reasonable determination of USS, would, or would
reasonably be likely to, result in (if the Option were exercised and the Parties execute and deliver the Master Agreement), (i)
the Parties submitting a joint notice to the Committee on Foreign Investment in the United States (“CFIUS”)
regarding the transactions contemplated by the Master Agreement and (ii) if the Parties made such a submission, following CFIUS’s
initial 45-day review period, CFIUS requesting an additional 45-day investigation period with respect to such transactions and,
based on the determination of nationally-recognized CFIUS counsel engaged by USS and reasonably acceptable to Stelco, the transactions
contemplated by the Master Agreement have a reasonable basis for being blocked by CFIUS or the Office of the President of the United
States. For the avoidance of doubt, such Persons would include any Person that is located, organized or resident in China, Russia
or any jurisdiction subject to Sanctions.

 

     

     

    

 

Exhibit F

List of Limited Transferees

 

		1.	Any Person that is a successor to Stelco as a party to this Agreement in connection with any, transfer,
sale, assignment, merger, consolidation, reorganization, liquidation or dissolution, in each case, made in connection with a proceeding
under any federal or provincial bankruptcy Law.

 

		2.	Any Person that, at the time of the Change of Control, is directly or indirectly, engaging in (a)
the business of owning or operating a flat-rolled steel mill or an energy pipe (but not a structural pipe), oil country tubular
goods and linepipe, electrical steel mill, a scrap alternatives facility, including but not limited to a pig machine, or any similar
or equivalent mill, facility or machine, (b) research, development or design of a flat-rolled or energy pipe (but not structural
pipe), oil country tubular goods and linepipe, electrical steel mill, scrap alternatives, including but not limited to a pig machine
or any similar or equivalent mill, facility or machine, (c) the business of owning or operating iron ore mines, including but not
limited to associated extraction, refinement or processing facilities or (d) any business in which USS or its Subsidiaries engage
as of the time of the Change of Control, to the extent that the aggregate revenues attributable to such business in the most recently-completed
fiscal year represent at least 10% or more of the consolidated revenues of USS and its Subsidiaries for such fiscal year (as set
forth in USS’s most recent audited consolidated financial statements).

 

		3.	Any Person that has, directly or indirectly through its Affiliates, whether individually or as
a member of a group (as defined in Section 13(d) of the Exchange Act), within the five-year period immediately preceding any date
of determination:

 

(a)          
made, had substantial engagement in or been an active participant in any “solicitation” of “proxies”
(as such terms are used in the proxy rules of the U.S. Securities and Exchange Commission) to vote, or advise or knowingly influence
any Person with respect to the voting of, any equity securities of any issuer in connection with a proposed change of Control or
other extraordinary or fundamental transaction, or a proposal for the election or replacement of directors, not approved (at the
time of the first such proposal) by the board of directors of such issuer;

 

(b)           
commenced a “tender offer” (as such term is used in Regulation 14D under the Exchange Act) to acquire the equity
securities of an issuer that was not approved (at the time of commencement) by the board of directors of such issuer in a Schedule
14D-9 filed under Regulation 14D under the Exchange Act; or

 

(c)           obtained
the appointment, designation or replacement (or the right to direct the appointment, replacement, designation or nomination
of) any member of the board of directors or the chief executive officer of an issuer as a result of a sustained public or
private campaign undertaken without the support of management and the board of directors to effect such change, including by
means of a cooperation, settlement or similar agreement with such issuer, in each case, but other than in connection with the
purchase of equity securities directly from such issuer.

 

     

     

    

 

Annex 1

 

Acceleration Event

 

     

     

    

 

Annex 2

 

Base Price Per Net Ton

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