Document:

Amended and Restated Coke Purchase Agreement, dated September 1, 2009

 Execution Version 

Exhibit 10.34 
 SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH FIVE ASTERISKS (*****). 
 AMENDED AND
RESTATED 
 COKE PURCHASE AGREEMENT 
 by and between 
 Middletown Coke Company, Inc. 

and 

AK Steel Corporation 
 Dated September 1, 2009 

 TABLE OF CONTENTS 

 

							
	ARTICLE I    DEFINITIONS; ACKNOWLEDGEMENT; BASIC OBLIGATIONS OF THE PARTIES	  	 	1	  
	             1.1
	  	Definitions	  	 	1	  
	1.2	  	The Plant	  	 	1	  
	1.3	  	Basic Obligations of the Parties	  	 	1	  
	1.4	  	Seller’s Notice and Reporting Obligations.	  	 	2	  
	1.5	  	Guarantee of Seller’s Obligations	  	 	3	  
	1.6	  	Transfer Restrictions	  	 	3	  
	1.7	  	Holding Guaranty	  	 	3	  
	ARTICLE II    TERM	  	 	3	  
	2.1	  	Term	  	 	3	  
	ARTICLE III    COKE PRICE AND PAYMENT TERMS	  	 	3	  
	3.1	  	Coke Price.	  	 	3	  
	3.2	  	Section 45 Credits.	  	 	8	  
	3.3	  	Terms of Payment/Invoicing.	  	 	10	  
	3.4	  	Reimbursement of Interconnection Costs.	  	 	12	  
	3.5	  	By-Products	  	 	13	  
	3.6	  	Audit Rights	  	 	13	  
	3.7	  	Production Turndown Adjustment Fee	  	 	13	  
	ARTICLE IV    COAL BLENDS	  	 	13	  
	4.1	  	Selection	  	 	13	  
	4.2	  	Sampling and Testing	  	 	13	  
	4.3	  	Unsuitability or Insufficiency of Coal Blends	  	 	13	  
	4.4	  	Authority of Seller	  	 	14	  
	ARTICLE V    SCREENED COKE SAMPLING, ANALYSIS AND QUALITY	  	 	14	  
	5.1	  	Coke Moisture and Screened Coke Quality.	  	 	14	  
	5.2	  	Title	  	 	16	  
	5.3	  	Exclusivity	  	 	16	  
	ARTICLE VI    OBLIGATIONS RELATED TO COKE SUPPLY AND DELIVERIES	  	 	17	  
	6.1	  	Coke Supply during the Initial Year	  	 	17	  
	6.2	  	Coke Supply and Purchase Obligation.	  	 	17	  
	6.3	  	Coke Deliveries.	  	 	17	  
	6.4	  	Third Party Supplied Coke	  	 	19	  
	6.5	  	Purchaser Obtained Coke	  	 	20	  
	6.6	  	Purchaser’s Conveyor	  	 	20	  
	6.7	  	Production Turndown.	  	 	20	  
	ARTICLE VII    CHANGES IN GOVERNMENTAL REQUIREMENTS	  	 	21	  
	7.1	  	Government Mandated Additional Expenditures.	  	 	21	  
	7.2	  	Government Mandated Additional Capital Expenditures	  	 	22	  
	ARTICLE VIII    FORCE MAJEURE EVENT(S)	  	 	22	  
	8.1	  	Seller Force Majeure Event(s).	  	 	22	  
	8.2	  	Purchaser Force Majeure Event(s).	  	 	23	  
	ARTICLE IX    DISPUTE RESOLUTION	  	 	24	  
	9.1	  	Attempt at Resolution	  	 	24	  
	9.2	  	Interpretation and Dispute Resolution.	  	 	24	  

  
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	            9.3  	 	Consolidation	  	 	25	  
	ARTICLE X    REPRESENTATIONS AND WARRANTIES	  	 	25	  
	10.1  	 	Seller’s Representations and Warranties	  	 	25	  
	10.2  	 	Purchaser’s Representations and Warranties	  	 	26	  
	10.3  	 	Holding’s Representations and Warranties	  	 	26	  
	ARTICLE XI    DEFAULT AND REMEDIES	  	 	27	  
	11.1  	 	Purchaser’s Events of Default	  	 	27	  
	11.2  	 	Seller’s Events of Default	  	 	27	  
	11.3  	 	Pursuit of Remedies	  	 	28	  
	11.4  	 	Termination by Seller for Breach by Purchaser	  	 	28	  
	11.5  	 	Termination by Purchaser for Breach by Seller	  	 	28	  
	11.6  	 	Early Termination without Event of Default	  	 	28	  
	11.7  	 	No Release of Accrued Obligations	  	 	29	  
	ARTICLE XII    MISCELLANEOUS PROVISIONS	  	 	30	  
	12.1  	 	Seller’s Indemnification of Purchaser for Infringement	  	 	30	  
	12.2  	 	Notices	  	 	30	  
	12.3  	 	Limitation of Liability; Exclusive Remedies	  	 	30	  
	12.4  	 	Rules of Interpretation	  	 	30	  
	12.5  	 	Governing Law	  	 	31	  
	12.6  	 	Severability	  	 	31	  
	12.7  	 	Confidentiality	  	 	31	  
	12.8  	 	Entire Agreement	  	 	31	  
	12.9  	 	Survival	  	 	32	  
	12.10	 	Captions	  	 	32	  
	12.11	 	Construction of Agreement	  	 	32	  
	12.12	 	Independent Contractor	  	 	32	  
	12.13	 	Waivers and Remedies	  	 	32	  
	12.14	 	Assignability	  	 	32	  
	12.15	 	Further Assurances	  	 	33	  
	12.16	 	Cooperation with Financing Efforts	  	 	33	  
	12.17	 	Binding Effect	  	 	33	  
	12.18	 	No Third Party Beneficiaries	  	 	33	  
	12.19	 	Mutuality of Drafting	  	 	33	  
	12.20	 	Counterparts Facsimile Signatures	  	 	34	  
	12.21	 	No Setoff	  	 	34	  
	12.22	 	Audits	  	 	34	  

  

			
	APPENDICES:	    	
		
	Appendix A	    	Definitions
		
	SCHEDULES:	    	
		
	Schedule 1.5	    	Guarantee of Seller’s Obligations
		
	Schedule 1.6	    	Guarantee of Purchaser’s Obligations

  
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	Schedule 5.1	    	Screened Coke Quality Standards
		
	Schedule 6.2(a)	    	Coke Supply and Purchase Obligation
		
	Schedule 7.2	    	Government Mandated Additional Capital Expenditures (Example)
		
	Schedule A-1	    	Lost Energy Charge

  
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 AMENDED AND RESTATED COKE PURCHASE AGREEMENT 

THIS AMENDED AND RESTATED COKE PURCHASE AGREEMENT dated as of September 1, 2009 (the “Effective Date”), is made by and
between Middletown Coke Company, Inc., a Delaware corporation (“Seller”) and AK Steel Corporation, a Delaware Corporation (“Purchaser”). This Agreement is a companion accord to the Amended and Restated Energy Sales Agreement
between Seller and Purchaser dated concurrently with this Agreement (the “Related Energy Sales Agreement”) and the Agreement Regarding Expedited Equipment Purchases between Seller and Purchaser dated as of March 4, 2008, as amended
(the “Equipment Agreement”). 
 For good and valuable consideration, including the Related Coke Purchase Agreement and
the Equipment Agreement, the Parties, intending to be legally bound, agree as follows: 
 ARTICLE I 

DEFINITIONS; ACKNOWLEDGEMENT; BASIC OBLIGATIONS OF THE PARTIES 

1.1 Definitions. The definitions of certain capitalized terms used in this Agreement are contained in the attached Appendix A.

 1.2 The Plant. Pursuant to this Agreement, the Related Energy Sales Agreement and the Equipment Agreement, Seller is
to construct (subject to the Contingencies) (i) a metallurgical coke making plant consisting of one hundred (100) heat recovery ovens organized in three oven batteries, (ii) an associated cogeneration plant (the “Cogeneration
Plant”) that converts steam produced at such coke plant into electrical energy, and (iii) related facilities and equipment (collectively, the “Plant”), all to be located on certain real property to be acquired by Seller that is
contiguous with Purchaser’s Middletown Plant (the “Property”). The Plant is to be owned and operated by Seller based upon heat recovery technology that is proprietary to Seller and its Affiliates. 

1.3 Basic Obligations of the Parties. Subject to the terms, conditions and requirements of this Agreement: 

(a) Delivery and Acceptance Obligations. 
 (i) During the Initial Operating Period, Seller shall deliver to Purchaser and Purchaser shall accept all Coke Tonnage, except for Nonconforming Coke Tonnage that is rejected by Purchaser pursuant to
Section 5.1(b)(iii). Seller will also provide to Purchaser, on the first business day of each Week, a nonbinding projection of (x) the duration of the Initial Operating Period, (y) Coke production for such Week, and (z) Coke
production for each subsequent Week remaining in the Initial Operating Period. 
 (ii) Following the Initial
Operating Period and throughout the balance of the Term, Seller shall deliver to Purchaser and Purchaser shall accept all Coke Tonnage (subject to Seller’s obligations in respect of the Coke Supply Obligation), except for Nonconforming Coke
Tonnage that is rejected by Purchaser pursuant to Section 5.1(b)(v). 

  
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 (b) Pricing and Payment. During the Term, the purchase price payable by Purchaser to
Seller in respect of Coke Tonnage is the Coke Price (except for Nonconforming Coke Tonnage that is rejected by Purchaser pursuant to Section 5.1(b)(v)), and for Nonconforming Coke Tonnage that is not rejected by Purchaser is the applicable
price set forth in Section 5.1(b)(v). Such amounts shall be payable in accordance with Section 3.3. 
 (c)
Integrated Transaction. The Parties acknowledge that (i) they are entering into this Agreement, the Related Energy Sales Agreement and the Equipment Agreement as a single integrated transaction, (ii) they would not enter into the
Related Energy Sales Agreement without also entering into this Agreement, and (iii) this Agreement and the Related Energy Sales Agreement are inextricably linked technically and economically, that neither would be feasible without the other,
and they constitute a single integrated transaction and agreement. 
 1.4 Seller’s Notice and Reporting Obligations.

 (a) Schedule and Progress Reports. The Parties acknowledge that Purchaser will be required to prudently manage third
party coke purchases and coke inventories in respect of the Middletown Plant pending the development of the Plant (and the date that the Plant demonstrates the commercial capability of producing Coke at its full production level). Accordingly, at
least ten (10) days following the satisfaction of each of the Contingencies (but subject to such Contingencies), Seller shall deliver to Purchaser a construction schedule that details the various phases of such work, including corresponding
milestone dates for major systems and equipment, and the substantial completion date prior to the commencement of the construction of physical improvements in respect of the Plant (the “Work”). Within three (3) business days following
the commencement of the construction of such Work, Seller will provide Purchaser with Written notice thereof. Seller will provide Written progress reports once per month, which shall include all material schedule updates and revisions in respect of
such Work, through the commencement of the Initial Operating Period. Such reports will be consistent with Seller’s internal reports in respect of the completion and status of applicable schedule milestones. 

(b) Weekly Meetings. In addition to the provision by Seller to Purchaser of the reports described in Section 1.4(a), Seller
and Purchaser shall schedule weekly on-site meetings whereby Seller or its designee shall informally report to Purchaser the status and progress of the Work, including (as applicable) any material revisions to the construction schedule in respect of
milestone dates and the substantial completion date for such Work. Seller shall also permit Purchaser to inspect the Plant construction site for the purpose of evaluating the progress of the Work; provided, however, all such site inspections shall
be subject to the supervision of Seller and its designee, and shall be conducted in a manner consistent with Seller’s safety policies and guidelines. 
 (c) Recovery Plans. In the event of any schedule delays in respect of construction milestones or the substantial completion date, Purchaser shall be advised of (as applicable) any recovery plans
and shall be invited to attend meetings between Seller and its suppliers and contractors in respect thereof; provided, however, neither Seller, its suppliers nor its contractors shall be obligated to implement any recommendations of Purchaser in
respect of any such recovery plans. 

  
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 1.5 Guarantee of Seller’s Obligations. The obligations of Seller under this
Agreement shall be guaranteed by SunCoke and Sun Coal & Coke Company, a Delaware corporation, pursuant to a guaranty in the form of Schedule 1.5 that Seller shall cause to be executed and delivered to Purchaser at the time of the execution
and delivery of this Agreement. 
 1.6 Transfer Restrictions. Purchaser shall not transfer or otherwise dispose of the
Middletown Plant without the prior Written consent of Seller. If Purchaser wishes to sell, lease, transfer or otherwise dispose of all or a substantial portion of its assets (other than the Middletown Plant), whether in a single transaction or
series of transactions, then it shall cause to be delivered to Seller at least forty-five (45) days prior to such sale, lease, transfer or other disposition (i) a Written notice of such sale, lease, transfer or other disposition,
(ii) a guaranty executed by AK Steel Holding Corporation, a Delaware corporation (“Holding”) in the form of Schedule 1.6, and (iii) an opinion of independent legal counsel to Holding, which legal counsel shall be reasonably
satisfactory to Seller and which opinion shall be in form and substance reasonably satisfactory to Seller, to the effect that such guaranty is the legal, valid and binding obligation of, and enforceable against Holding, subject to customary
exceptions. The Parties acknowledge that in the event any of the foregoing obligations are breached by Purchaser or Holding, Seller shall be entitled to both interim and permanent injunctive relief in respect of such obligations, including (as
applicable) injunctive relief and specific enforcement against Purchaser and Holding. Notwithstanding the foregoing, Purchaser shall not be restricted from creating or permitting to exist (and the foregoing provisions shall not apply to) any lien,
security interest or other encumbrance on any of its assets. 
 1.7 Holding Guaranty. Following the expiration,
cancellation or termination of the Indenture, Holding shall promptly (i) notify Seller of such circumstance in Writing, and (ii) execute and deliver to Seller a guaranty of Holding in favor of Seller in the form of Schedule 1.6. Such
guaranty obligation shall be specifically enforceable by Seller against Holding. 
 ARTICLE II 

TERM 
 2.1 Term. The term of this Agreement (“Term”) shall commence on the Effective Date and, subject to earlier termination in accordance with this Agreement, shall continue in effect for
twenty (20) Contract Years. Upon the conclusion of such twenty (20) Contract Years, this Agreement shall automatically renew for two (2) successive five (5) year terms each unless notice of termination is given by either Party at
least one (1) year prior to the end of the Term. 
 ARTICLE III 

COKE PRICE AND PAYMENT TERMS 
 3.1 Coke Price. 
 (a) Components. Subject to Section 3.4:

 (i) During the Initial Operating Period, and for the balance of the year (namely, through December 31st)
during which the Initial Operating Period expires (the “Initial Year”), the Coke Price is the sum of (x) the Adjusted Fixed 

  
 3 

 
Price Component, (y) the Initial O&M Component, plus (z) the Coal Cost Component; and 
 (ii) During each Contract Year (following such Initial Year), the Coke Price is the sum of (A) the Adjusted Fixed Price Component, (B) subject to Section 3.1(c)(vi), the Forecasted O&M
Component, and (C) the Coal Cost Component. 
 (b) Adjusted Fixed Price Component. 

(i) The Fixed Price Component is $***** per Ton of Coke. 

(ii) The Parties acknowledge that Coke production depends upon the moisture content of each Coal Blend. Accordingly, the
Fixed Price Component shall be adjusted (increased or decreased) based upon the Weighted Average moisture content of the Coals comprising each Coal Blend for the applicable Month. Accordingly, if the actual Weighted Average moisture content of such
Coal Blend Tonnage exceeds *****%, then for each *****% increment thereof in excess of *****%, the Fixed Price Component shall be correspondingly increased by *****%. Conversely, if the actual Weighted Average moisture content of such Coal Blend
Tonnage is less than *****%, then for each *****% increment thereof less than *****%, the Fixed Price Component shall be correspondingly reduced by *****%. By way of example, if the actual Weighted Average moisture content of the Coal Blend is
*****%, then such adjusted Fixed Price Component (the “Adjusted Fixed Price Component”) is $***** (namely, the sum of the (i) Fixed Price Component plus the (ii) product of the Fixed Price Component multiplied by *****%).
Conversely, and by way of example, if the actual Weighted Average moisture content of the Coal Blend is *****%, then such Adjusted Fixed Price Component is $***** (namely, the sum of (i) Fixed Price Component minus the (ii) product of the
Fixed Price Component multiplied by *****%). 
 (c) Initial O&M Component, Forecasted O&M Component, Actual O&M
Component and Annual True-Up. 
 (i) During the Initial Year, the O&M Component is $***** per ton of Coke
(the “Initial O&M Component”). 
 (ii) Following such Initial Year, and at least sixty
(60) days prior to the commencement of each Contract Year, Seller will prepare a good faith forecast (the “Forecast”) that sets forth in reasonable detail its good faith estimate of the O&M Expenses in respect of the Plant and the
for the next ensuing Contract Year. For the avoidance of doubt, such O&M Expenses include operating and maintenance costs in respect of the Cogeneration Plant notwithstanding the circumstance that payments in respect of electrical energy
produced by such Cogeneration Plant are made pursuant to the Related Energy Sales Agreement. 

  
 4 

 (iii) Without duplication or double-counting in respect of O&M Expenses,
such Forecast shall be based upon (i) subject to any applicable confidentiality restrictions in respect of other customers of Seller’s Affiliates, typical historic operations and maintenance history at other domestic coke making facilities
that utilize SunCoke’s proprietary heat recovery coke making technology as such history applies to the Plant; (ii) historic operations and maintenance history at the Plant; (iii) subject to Article VII, compliance with Governmental
Requirements in respect of the Plant, including Government Mandated Additional Expenses; (iv) property taxes in respect of the Plant; (v) Targeted Coke Production in respect of the Coal Blend(s) to be utilized during such Contract Year;
(vi) labor expenses in respect of the Plant; (vii) Prudent Operating and Maintenance Practices; (viii) the reasonable cost of all premiums or, as applicable, allocations, in respect of required and commercially reasonable insurance
coverages for the Plant, Plant operations, and employees of Seller (provided such allocations or premiums constitute O&M Expenses), and (ix) other reasonable conditions specific to the Plant and Seller’s performance hereunder (the
“Guidelines”); provided, however, but subject to Section 7.1(c), such other reasonable conditions shall not include fines or penalties in respect of violations of Governmental Requirements including Governmental Requirements
pertaining to the environment, and employee health and safety. Such Forecast shall be delivered to the Purchaser for approval by it, which approval shall not be unreasonably withheld, conditioned or delayed. 

(iv) Within fifteen (15) days following Seller’s delivery of each such Forecast to Purchaser, Seller and
Purchaser shall confer in good faith for the purpose of reviewing and approving such Forecast. If, within thirty (30) days thereafter, the Parties do not agree upon such Forecast, then Purchaser shall promptly deliver to Seller (no later than
ten (10) days following the expiration of such thirty (30) day period) Written notice of its disapproval of such Forecast that sets forth the specific grounds therefor including any alleged inconsistency thereof with the Guidelines. The
Parties may thereafter submit such dispute to arbitration in accordance with Section 9.2; provided, however, pending such resolution, (i) the O&M Expenses in respect of the preceding Contract Year, as adjusted in accordance with the
Index Formula (the “Presumed O&M Expenses”), shall be the basis for the O&M Expenses for the period during which such dispute is pending (except for the first Contract Year, for which the Presumed O&M Expenses in respect of
such Contract Year pending that resolution shall be the Initial O&M Component as adjusted in accordance with the Index Formula), and (ii) if, following any such arbitration, it is determined that the allowable O&M Expenses are greater
or less than the Presumed O&M Expenses, then Purchaser or, as applicable, Seller shall pay to the prevailing Party the product of the difference between (i) the (y) Forecasted O&M Component based upon the Presumed O&M Expenses
for the applicable Contract Year or, as applicable, in respect of the Initial Year, and (z) the Forecasted O&M Component based upon the O&M Expenses approved pursuant to such arbitration, multiplied by (ii) the Coke Tonnage sold by
Seller to Purchaser based upon such Presumed O&M Expenses, plus interest thereon accrued thereon at the Interest Rate. Such 

  
 5 

 
payment shall be, as applicable, added to or credited against the amount otherwise payable by Purchaser to Seller in accordance with the Monthly invoice immediately following any such award.

 (v) The Forecasted O&M Component for each Contract Year will be determined in accordance with the
following formula: 
 Forecasted O&M Component = [Forecast O&M Expenses (or if such Forecast is subject to a dispute,
the Presumed O&M Expenses, until such time as the dispute is resolved) in respect of the Plant set forth in the approved Forecast for the applicable Contract Year ÷ Targeted Coke Production in respect of the Coal Blend(s) to be utilized
during such Contract Year] 
 (vi) Seller shall endeavor in good faith to operate and maintain the Plant in
accordance with the Forecasted O&M Component for the applicable Contract Year in accordance with Prudent Operating and Maintenance Practices. Subject to the foregoing, within thirty (30) days following the conclusion of each Contract Year,
Seller will submit to Purchaser a Written report that summarizes the actual O&M Component for such Contract Year (the “Actual O&M Component”) as determined in accordance with the following formula: 

Actual O&M Component = actual O&M Expenses in respect of the Plant for the applicable Contract Year ÷ actual Coke
Tonnage produced at the Plant during such Contract Year (including Nonconforming Coke Tonnage rejected by Purchaser). 

Where applicable, but subject to Article VII, Purchaser shall pay Seller an amount equal to *****% of the product of (i) any positive
difference between the (y) Actual O&M Component for the applicable Contract Year and (z) Forecasted O&M Component as set forth in the Forecast for such Contract Year, multiplied by (ii) actual Coke production delivered to
Purchaser during such Contract Year (excluding, in each case, Nonconforming Coke Tonnage rejected by Purchaser). Where applicable, but subject to Article VII, Seller shall credit Purchaser an amount equal to *****% of any (i) negative
difference between the (y) Actual O&M Component the applicable Contract Year and (z) Forecasted O&M Component for such Contract Year, multiplied by (ii) actual Coke production delivered to Purchaser during such Contract Year;
provided, however, in no event shall the actual Coke production amount utilized in the denominators to the foregoing formulas be less than *****% of the Targeted Coke Production for the applicable Contract Year; provided, further, that such *****%
limitation shall not apply to any Month during such Contract Year when a Production Turndown is in effect. Such payment or credit shall, as applicable, be added to or deducted from the amounts otherwise payable in accordance with the invoice in
respect of the Month during which such credit or payment is determined, and shall be subject to reasonable verification by Purchaser. 

  
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 (d) Coal Cost Component. 

(i) Coal Costs are all costs, expenses and expenditures, including Taxes, related to sampling, testing, selecting,
purchasing, storing, handling of Coals, and in respect of transporting, and delivering the Coals to the Plant, but excluding overhead or administrative costs of Seller or its Affiliates in respect thereof. Unless otherwise approved by Purchaser,
each Coal comprising the selected Coal Blend shall be purchased by Seller for a commercially reasonable price, and in accordance with commercially reasonable standards, terms and conditions based upon thirty (30) day payment terms. Coal Costs
do not include penalties, assessments and damages recovered by Seller in respect of Coal contracts with Coal suppliers to the extent such penalties, assessments and/or damages result in Coke Price reductions as set forth in Schedule 5.1 or any
successor schedule (in which case such penalties, assessments and/or damages shall be for the account of Seller); provided, however, if such penalties, assessments and/or damages exceed such Coke Price reductions, or such penalties, assessments
and/or damages do not result in a Coke Price reduction, then any such excess amount(s) or such penalties, assessments and/or damages not resulting in a Coke Price reduction will be deducted from the Coal Costs. 

(ii) The Coal Cost Component is (i) the actual Monthly Weighted Average Coal Costs, divided by (ii) the product
of (y) the Moisture Adjusted Coal Blend Tonnage charged to the coke ovens at the Plant set forth in each applicable invoice, taking into account Coal Handling Losses, and (z) the Guaranteed Coke Yield Percentage. 

(iii) The Moisture Adjusted Coal Blend Tonnage is the Weighted Average thereof for each applicable Month, and accounts for
Coal Blend moisture on a fixed *****% basis to be determined in accordance with the following formula: 
 Moisture Adjusted
Coal Blend Tonnage = actual Coal Blend Tonnage (as determined in accordance with Section 3.1(d)(v)) x [(1 – the actual moisture content of such Coal Blend Tonnage) ÷*****]. 

Such actual moisture shall be determined based on sampling of the actual Coal Blend Tonnage immediately prior to coking thereof, and the
testing and analysis on a composite basis, all of which shall be performed in accordance with ASTM Standards. 

(iv) Coal Handling Losses shall be fixed at *****%, and shall be accounted in accordance with the following formula:

 Moisture Adjusted Coal Blend Tonnage for each Coke shipment x 

***** 

  
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 (v) Seller’s static scale shall weigh Coal Blend Tonnages immediately
prior to coking. Such scale shall have an accuracy of not less than plus or minus (+/-) 0.25%, and shall be calibrated in accordance with the manufacturer’s instructions at Seller’s sole cost and expense. Absent Manifest Error, such weight
determinations shall be conclusive and binding on the Parties. 
 (vi) The Guaranteed Coke Yield Percentage is
determined in accordance with the following formula: 
 Blast furnace coke “dry” yield equals *****% less
the sum of the percentage of dry basis volatile matter in the Coal Blend (described as the “typical” dry basis volatile matter in the Coal contracts pertaining to the Coal Blend) plus a *****% allowance for net operating losses in the
coking process; provided, however, if the Weighted Average actual moisture content of such Coal Blend Tonnage exceeds *****%, then for each increment of *****% in excess of *****%, such *****% allowance shall be correspondingly increased by *****%.
By way of example, if the actual Weighted Average moisture content of the Coal Blend is *****%, then the corresponding allowance for net operating losses in the coking process would be *****%. 

Seller will re-determine the Guaranteed Coke Yield Percentage whenever the proportionate share of Coals within any Coal Blend is increased
or decreased by *****% or more. 
 (e) Determination of Coke Tonnage. All Coke Tonnage shall be weighed by belt scales
operated by Seller. Such scales shall have an accuracy of not less than 0.25%, and shall be maintained and calibrated in accordance with the manufacturer’s instructions, the cost of which calibration shall be an O&M Expense. Absent Manifest
Error, such weight determinations shall be conclusive and binding on the Parties. All Coke Tonnage shall be adjusted to a *****% moisture content in accordance with the following formula: 

Tons Sold        =        Total Tons x
(1 – actual percentage moisture content) 

            ***** 

The actual moisture percentage content of Coke shall be determined in accordance with Section 5.1. 

3.2 Section 45 Credits. 
 (a) In General. Provided Purchaser is not in default of this Agreement, if any Coke qualifies for a credit under the Section 45 of the Internal Revenue Code of 1986, or any similar or
successor provision (“Section 45 Credits”) during any year during which Coke is produced during the Term, then Seller shall provide Purchaser with a credit in respect of Coke Tonnage sold by Seller to Purchaser during such year, provided
that in any Production Turndown Period the credit provided to Purchaser shall be reduced proportionately based on the Coke Purchase Shortfall. 

  
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 (b) Sunoco Realized Value. Where Sunoco or its Affiliates are the sole investors in
Seller, such credit shall be equal to *****% of the Sunoco Realized Value of such Section 45 Credits. Such Sunoco Realized Value is the pre-tax value realized by Sunoco in respect of such Section 45 Credits, which shall be determined by
dividing the amount of such Section 45 Credits by one (1) minus the sum of (x), where (x) is the highest marginal federal income tax rate applicable to corporations, minus, in respect of section 199 of the Internal Revenue Code of
1986, (i) two (2) percentage points in respect of year 2009, or (ii) three percentage points for each subsequent year during which such Section 45 Credits may be available; provided, however, such Sunoco Realized Value shall also
take into account any change in law, phase out, the ability of Sunoco to utilize the Section 45 Credits, or other circumstances relevant to such Sunoco Realized Value determination. The ability of Sunoco to utilize such Section 45 Credits
shall be determined by comparing Sunoco’s current federal consolidated tax liability with and without the Section 45 Credits attributable to Coke sales to Purchaser in respect of each such year. The determination of such Sunoco Realized
Value in respect of each year during which Section 45 Credits may be available shall be made on or before October 1st of the subsequent year and shall be credited on the invoice for such Month; provided, however, that if there is any
change in law that repeals or reduces the amount of the section 199 deduction of the Code, or that limits the benefit or availability of such deduction, in either case with respect to income arising from the sale of Coke under this Agreement, then
the amounts subtracted pursuant to subparts (i) and (ii) of this Section 3.2(b) shall be reduced to reflect such change. 
 (c) Other Realized Value. Where Sunoco or its Affiliates, and any third party or parties (the “Third Party Investor(s)”), are the investors in Seller, such credit shall be equal to *****%
of the Other Realized Value of such Section 45 Credits. Such Other Realized Value is the product of (i) the percentage interest of Sunoco or its Affiliates and such Third Party Investor(s) in respect of the revenue derived from the sale of
Coke multiplied by, as applicable, (ii) the pre-tax value realized by (y) Sunoco in respect of such Section 45 Credits (as determined in accordance with Section 3.2(b)) and (z) the Third Party Investor(s) as determined in a
manner consistent with Section 3.2(b); provided, however, (i) such Other Realized Value in respect of any year shall not be less than the Sunoco Realized Value for such year had such Third Party Investor(s) not been investors in Seller;
and (ii) such Other Realized Value shall also take into account any change in law, phase out, the ability of Sunoco or, as applicable, the Third Party Investor(s) to utilize the Section 45 Credits, or other circumstances relevant to such
Other Realized Value determination. The determination of such Other Realized Value in respect of each year during which Section 45 Credits may be available shall be made on or before the last Month of subsequent year and shall be credited on
the invoice for such Month. 
 (d) Increases or Reductions. If the Sunoco Realized Value or Other Realized Value of any
Section 45 Credits on Coke sales to Purchaser is thereafter reduced by the carry back of a net operating loss in respect of an amended return, disallowance of all or a portion of the Section 45 Credits, or the inability of Sunoco or (as
applicable) the Third Party Investor(s) to utilize the Section 45 Credits after final resolution of an IRS audit, then Purchaser shall pay to Seller, within thirty (30) days following Seller’s Written notification to Purchaser of such
reduction, an amount equal to (i) *****% of the Sunoco Realized Value and (as applicable) the Other Realized Value that would otherwise would have been realized but for such reduction plus *****% of any fines and/or penalties arising from such
disallowance, plus (ii) interest thereon, 

  
 9 

 
computed from the date of filing of the consolidated income tax return of Sunoco or, as applicable, Third Party Investor(s) through the date on which such amount is paid by Purchaser to Seller.
Such interest shall be equal to the additional interest owed by Sunoco or (as applicable) Third Party Investor(s), or the reduction in interest due to Sunoco or (as applicable) Third Party Investor(s) if Sunoco or (as applicable) Third Party
Investor(s) is in an overpayment position, determined by computing Sunoco’s or (as applicable) Third Party Investor(s)’ federal income tax liability for the year with and without *****% of the disallowed or reduced Section 45 credits.
If the Sunoco Realized Value and (as applicable) the Other Realized Value of any Section 45 Credits from Coke sales to Purchaser is thereafter increased as a result of the ability of Sunoco or (as applicable) Third Party Investor(s) to utilize
the carryover of any unused Section 45 Credits in later taxable years, or the ability of Sunoco or (as applicable) Third Party Investor(s) to utilize additional Section 45 Credits after final resolution of an IRS audit, then Seller will
credit Purchaser with an amount equal to (i) *****% of the Sunoco Realized Value and (as applicable) the Other Realized Value in respect of such increase, plus (ii) interest thereon at the overpayment rate of section 6621 of the Code or
the successor provision, computed from the date of filing of the consolidated income tax return of Sunoco or (as applicable) Third Party Investor(s) for the year in which the credit is utilized through the date on which such amount is credited by
Seller to Purchaser. Any such credit shall be applied to the invoice for such Month during which such Section 45 Credits are utilized. 
 (e) Schedules. Seller shall prepare schedule(s) showing the calculation of the Section 45 Credits with respect to Coke sold to Purchaser during a year, not later than thirty (30) days
before Seller files its federal income tax return for such year. 
 (f) Recomputation. If Seller, and if applicable, any
Third Party Investor(s), is claiming more Section 45 Credits than the amount that Purchaser determines to be appropriate, then for purposes of this Section 3.2, Purchaser may elect to have the Sunoco Realized Value, and if applicable, the
Other Realized Value, determined based on such lower amount of Section 45 Credits (such lower amount referred to as the “Recomputed Section 45 Credit Amount”). If there is a later reduction in any Section 45 Credits claimed
by Seller or any Third Party Investor, then Purchaser’s liability under Section 3.3(d) shall be determined only with respect to such reduction below the Recomputed Section 45 Credit Amount. Seller has no obligation to Purchaser under
this Section 3.2 to the extent the amount of Section 45 Credits actually allowed exceed the Recomputed Section 45 Credit Amount. 
 (g) Acknowledgement. The Parties acknowledge that the Coke batteries located within the Plant must be placed in service on or before December 31, 2009 (the “Section 45 Qualification
Deadline”) in order to qualify for Section 45 Credits and that there is no guaranty that such Section 45 Qualification Deadline will be achieved by Seller. Accordingly, Seller owes no duty or obligation to Purchaser in respect of
completing the construction of the Plant or its batteries within such Section 45 Qualification Deadline, and shall have no liability to Purchaser whatsoever under this Agreement or otherwise if Coke does not qualify for Section 45 Credits
as a consequence thereof, even if arising out of the fault or misconduct of Seller. 
 3.3 Terms of Payment/Invoicing.

  
 10 

 (a) Provisional Monthly Invoices. During the Initial Year and each Contract Year, on
or after the tenth (10th) day before the end of each Month transpiring for the balance of the Term and any renewal thereof, Seller will submit to Purchaser a Written invoice in respect of each such Month. The invoiced amount for such Month
shall be the sum of (i) the product of the applicable Coke Price multiplied by Seller’s good faith estimate of the Coke Tonnage to be delivered to Purchaser during such Month (the “Estimated Coke Tonnage”), plus, (ii) Taxes
thereon, plus or minus, as applicable, (iii) the applicable adjustments set forth in Section 3.3(c). 
 (b) Final
Monthly Invoices. Revisions (in the form of, as applicable, credits or debits) to each provisional invoice will be made on a special Monthly final invoice delivered by Seller to Purchaser to reflect any debit or credit, as the case may be, in
respect of the negative or positive difference between the product of the applicable Coke Price multiplied by the Estimated Coke Tonnage for such Month and the product of the applicable Coke Price multiplied by the actual Coke Tonnage delivered to
Purchaser during such Month, including any applicable adjustments for Taxes. Each such invoice will be submitted to Purchaser within fifteen (15) days following the end of each applicable Month. 

(c) Invoice Adjustments. 
 (i) During the Initial Year and each Contract Year, amounts payable by Purchaser to Seller pursuant to Section 3.3(b) shall be subject to the following Monthly adjustments (as applicable):

 (A) Section 45 Credits as set forth in Section 3.2 (including any reductions or increases thereto
as set forth in Section 3.2(d)); 
 (B) Amounts payable pursuant to Article VII; 

(C) Adjustment(s) to the Coke Price as set forth in Section 5.1(b)(ii) and Schedule 5.1; 

(D) The Coke Price Discount in respect of any Nonconforming Coke Tonnage accepted or commingled by Purchaser as set forth
in Section 5.1(b)(v); 
 (E) Direct costs that are creditable by Purchaser to Seller or, as applicable,
reimbursable by Purchaser to Seller pursuant to Section 6.3; 
 (F) The Production Turndown Adjustment Fee;
and 
 (G) The Railroad Deficit Charge. 

(ii) During each Contract Year, amounts payable by Purchaser to Seller pursuant to Section 3.3(b) shall be subject to
the following adjustments (as applicable), in addition to the adjustments set forth in clause (i) of this Section 3.3(c): 

  
 11 

 (A) Any credit or payment, as the case may be, as determined in accordance
with Section 3.1(c)(iv); and 
 (B) Any credit or payment, as the case may be, in respect of any positive
or negative difference between the Actual O&M Component and the Forecasted O&M Component, as determined in accordance with Section 3.1(c)(vi). 
 (d) Payment. Subject to Section 3.3(e), provisionally and Monthly invoiced amounts as set forth herein shall be due and payable in immediately available funds by wire transfer to accounts
identified by Seller or its designee on or within ten (10) days after each applicable invoice is delivered by Seller or its designee to Purchaser (the “Due Date”), and such payments shall not be subject to any right of set off or
other condition. Overdue amounts shall accrue interest at the Interest Rate from the applicable Due Date. Commencing the first Contract Year, the Due Date shall be set annually based on the payment terms set forth in Seller’s Coal purchase
contracts based upon the weighted average, in Tons, of the Coal to be delivered under such Coal purchase contracts, provided that the Due Date will be the greater of (i) ten (10) days, or (ii) twenty (20) fewer days than the
weighted average of the due dates for payment as set forth in such Coal purchase contracts, in each case after the applicable invoice is delivered by Seller or its designee to Purchaser. 

(e) Manifest Error Exception. If, based upon Manifest Error, Purchaser reasonably believes that any invoice incorporates
overcharged amounts in respect of amounts properly payable under this Agreement, then it shall notify Seller in Writing of such overcharge, including the amount and the basis of its belief, prior to the Due Date. Subject to the foregoing, undisputed
amounts shall be paid as set forth in Section 3.3(d), and the Parties shall attempt, in good faith, to agree upon the disputed amounts within fifteen (15) days after such Written notice is delivered by Purchaser. If the Parties cannot
resolve any such dispute within such fifteen (15) day period, then either Party may invoke the provisions of Section 9.2. Disputed amounts confirmed to be actually due by Purchaser shall be payable within five (5) Business Days, and
shall accrue interest at the Interest Rate from the applicable Due Date. If it is determined in accordance with Section 9.2 that Purchaser has overpaid Seller under this Agreement, then Seller shall promptly reimburse Purchaser for the full
amount of such overpayment, with interest in respect of such overpayment accruing at the Interest Rate from the date of such overpayment by Purchaser through the date of reimbursement by Seller. 

3.4 Reimbursement of Interconnection Costs. 
 (a) Interconnection Charges. Purchaser and Seller acknowledge that, as of the Effective Date, costs, fees and expenses in respect of developing and constructing improvements in respect of
(i) connecting the Cogeneration Plant to the local electrical energy grid, and (ii) completing transmission and distribution system upgrades required to accommodate new capacity in respect of electrical energy production from the
Cogeneration Plant (collectively, “Interconnection Costs”) have not been determined. Accordingly, the Parties acknowledge that such Interconnection Costs have not been incorporated into the Fixed Price Component. 

  
 12 

 (b) Reimbursement by Purchaser. Seller will pay the Interconnection Costs in a timely
manner, and will invoice Purchaser for such Interconnection Costs on a Monthly basis as such Interconnection Costs are incurred. Each such invoice will include reasonable support for the Interconnection Costs incurred during each invoice period, and
will be payable within fifteen (15) days following the delivery thereof by Seller to Purchaser. Overdue payments shall bear interest at the Interest Rate. 
 3.5 By-Products. Seller shall retain all By-Products for its own account. Seller shall retain all proceeds from the sale or other disposition of By-Products. 

3.6 Audit Rights. Purchaser or its designee shall have the right, during normal working hours of Seller, to review and inspect
such books and records of Seller and, as applicable, SunCoke as Purchaser deems reasonably necessary to verify any amounts payable by Purchaser under this Agreement. Purchaser shall provide Seller with at least two (2) Business Days Written
notice prior to its commencement of any such review and inspection. Such review and inspection shall take place at the place in which such books and records are customarily maintained. 

3.7 Production Turndown Adjustment Fee. In the event Purchaser requests a Production Turndown, in addition to the amounts payable
by Purchaser pursuant to Section 3.1(a)(iii), Purchaser shall pay Seller an amount equal to the sum of (a) the product of (x) $*****, multiplied by (y) the Monthly Coke Purchase Shortfall, and (b) the Lost Energy
Charge (the “Production Turndown Adjustment Fee”). 
 ARTICLE IV 

COAL BLENDS 
 4.1 Selection. The Coal Committee shall select, by majority vote, Coal Blends that conform to the Coal Blend Standards, and may make recommendations to Seller regarding the acquisition of Coals in
respect of this Agreement and related testing, blending, handling and delivery procedures. Purchaser and Seller shall each be entitled to exercise one vote in respect of Coal Committee matters. Meetings of the Coal Committee shall be scheduled at
intervals and at locations to be mutually agreed upon by the Parties. In the event of a tie, Purchaser shall have the final and deciding vote; provided, however, Purchaser shall not utilize such final and deciding vote to select a Coal Blend that
does not conform to the Coal Blend Standards. 
 4.2 Sampling and Testing. A qualified independent laboratory, reasonably
acceptable to both Parties, shall perform sampling, proximate analysis (including moisture analysis), total sulfur analysis, oxidation analysis, plastic behavior analysis, and petrography of each Coal shipment. Such sampling, analysis and
petrography shall be performed in accordance with ASTM Standards. The results of such analysis and petrography shall be promptly provided to each member of the Coal Committee in Writing, and shall be used for determining compliance with the Coal
Blend Standards in respect of each Coal Blend. 
 4.3 Unsuitability or Insufficiency of Coal Blends. If any Coal Blend
does not in practice conform to the Coal Blend Standards or if sufficient quantities thereof become unavailable, then Seller shall promptly inform Purchaser in Writing of such (applicable) 

  
 13 

 
nonconformity or unavailability. If, pending selection of any new Coal Blend, the use by Seller of the Coal Blend originally selected by for use at the Plant adversely affects the Plant or
Seller’s ability to comply with its obligations under this Agreement then, pending the selection of a new Coal Blend, Seller shall have the authority to utilize another Coal Blend that incorporates the Coals available at the Plant or Coals that
are otherwise reasonably available to Seller and which, in Seller’s reasonable judgment, meet or reasonably approximate the Coal Blend Standards. If such a Coal Blend is not available to Seller, then the Screened Coke Quality Standards and the
Coke Supply and Purchase Obligation shall be, as appropriate, adjusted at the reasonable discretion of Seller; provided, however, Seller shall provide Purchaser with Written notice of such circumstance, and the basis for any corresponding adjustment
to, as applicable, the Screened Coke Quality Standards and/or the Coke Supply and Purchase Obligation. 
 4.4 Authority of
Seller. Subject to Seller’s obligations in respect of Sections 4.1, 4.2 and 4.3, Seller shall retain the responsibility and authority for daily operating matters involving the Coal Blends and compliance with the Screened Coke Quality
Standards, without any requirement to consult with or obtain the approval of Purchaser. 
 ARTICLE V 

SCREENED COKE SAMPLING, ANALYSIS AND QUALITY 
 5.1 Coke Moisture and Screened Coke Quality. 
 (a) Coke and Screened
Coke Sampling and Analysis. Coke and Screened Coke will each be sampled by automatic swing arm cross cut samplers located within the Plant that will collect composite Coke and Screened Coke samples at least once each ***** hour production turn
in accordance with ASTM standards. Such samples will be analyzed by an independent laboratory selected by Seller and approved by Purchaser (which approval shall not be unreasonably withheld, conditioned or delayed) in accordance with ASTM Standards,
or such other standards agreed upon by the Parties in Writing. Purchaser shall be provided with a referee split of all samples. Such independent laboratory shall retain such samples for not less than thirty (30) days. The sulfur, ash, volatile
matter, and stability content of Screened Coke will be tested and analyzed on a daily basis for the purposes of determining whether (i) Coke is subject to being rejected as Nonconforming Coke, and (ii) any Coke Price adjustments pursuant
to the “Threshold” limits set forth in Schedule 5.1, based in each case upon an arithmetical average of such shift samples. Total moisture shall be determined on a Weekly basis based upon a composite of such Screened Coke shift samples. A
designated representative of Purchaser will be entitled to be present during such sampling, preparation and analysis upon reasonable verbal notice of its intention to be present during such sampling, preparation and analysis, and Purchaser may audit
such sampling and analysis procedures for the purpose of determining whether such procedures conform to ASTM Standards. Seller will report the results thereof to Purchaser as soon as those results are available. Absent Manifest Error, those results
shall be conclusive and binding on the Parties for the purposes of determining conformity with the Screened Coke Quality Standards and any adjustments to the Coke Price as set forth in Section 5.1(b) and Schedule 5.1. 

(b) Screened Coke Quality Standards. 

  
 14 

 (i) Subject to the availability of Coals that conform to the Coal Blend
Standards, Screened Coke shall conform to the Screened Coke Quality Standards set forth in the Schedule 5.1 and Seller will implement commercially reasonable measures to achieve conformity with the “mean” Screened Coke Quality Standards
set forth in Schedule 5.1. 
 (ii) Subject to the availability of Coals that conform to the Coal Blend Standards
and Section 5.1(c), if Screened Coke or Third Party Supplied Coke Tonnage does not conform to the “threshold” limits provided for in the Screened Coke Quality Standards set forth in Schedule 5.1, then the Coke Price in respect of such
Coke Tonnage will be adjusted as set forth in Schedule 5.1 as respects each such nonconformity. In addition, Seller will implement prompt corrective measures to correct any such nonconformity in respect of further Screened Coke shipments and will
promptly inform Purchaser in Writing of such corrective measures. 
 (iii) Subject to the availability of Coals
that conform to the Coal Blend Standards, if not less than ***** hours prior to pushing, Seller has reason to believe that the Plant will produce Screened Coke that exceeds or, as applicable, is less than the “reject” limits set forth in
Schedule 5.1 (“Nonconforming Coke”), then Seller shall notify Purchaser’s designee at the Middletown Plant in Writing thereof. Such notice will include the basis for Seller’s determination, its reasonable estimate of the quality
of such Nonconforming Coke (particularly with respect to the “reject” standards set forth in Schedule 5.1), and the estimated delivery time of such Nonconforming Coke. Following such notification but prior to the delivery of such
(presumptive) Nonconforming Coke, Purchaser may reject such (presumptive) Nonconforming Coke; provided, however, Seller may subsequently blend such (presumptive) Nonconforming Coke into other Coke such that such blended Coke does not exceed or, as
applicable, is not less than the “reject” limits set forth in the Screened Coke Quality Standards. Purchaser may rely on Seller’s notice as accurate and shall be deemed to have properly rejected such (presumptive) Nonconforming Coke
regardless of whether or not it is determined to meet the Screened Coke Quality Standards. 
 (iv) If such
(presumptive) Nonconforming Coke is later determined to meet the Screened Coke Quality Standards based upon sampling, preparation, testing and analysis set forth in Section 5.1(a), then Purchaser shall have no liability for having rejected such
(presumptive) Nonconforming Coke and Seller may thereafter deliver such Coke to Purchaser. 
 (v) If Screened
Coke is delivered to Purchaser and is subsequently determined to be Nonconforming Coke based upon sampling, preparation, testing and analysis set forth in Section 5.1(a), and such Nonconforming Coke is consumed or commingled with any other
screened coke acquired by Purchaser, then Seller shall be credited an amount equal to (i) the product of the (y) Coke Price multiplied by (z) the product of the Coke Tonnage from which such Nonconforming Coke Tonnage is derived (as
adjusted for quality pursuant to the 

  
 15 

 
Schedule 5.1), minus (ii) $***** per Ton in respect of such Nonconforming Coke Tonnage (the “Coke Price Discount”). Payment for such Nonconforming Coke shall be made in accordance
with Section 3.3. However, where Nonconforming Coke is not consumed or is not commingled with other screened coke acquired by Purchaser, Purchaser may either (y) reject such Nonconforming Coke by means of prompt Written notification
thereof delivered by Purchaser to Seller (provided such Written notice is delivered within three (3) Business Days following Seller’s notification to Purchaser of such Nonconforming Coke Tonnage), or (z) purchase such Nonconforming
Coke Tonnage for the Coke Price less the Coke Price Discount. Upon rejection of such Nonconforming Coke, title to such Nonconforming Coke shall revert to Seller and Seller shall accept all risk of loss, damage, or destruction therefore. 

(vi) As applicable, Seller shall be required to remove from Purchaser’s facilities any Nonconforming Coke that is
properly rejected by Purchaser. Seller will be responsible for all removal costs. Purchaser may require Seller to make up the corresponding shortfall pursuant to a reasonable shipment schedule to be specified by Purchaser. In addition, Seller shall
implement appropriate corrective measures prior to further Screened Coke deliveries, and shall promptly notify Purchaser in Writing of such corrective measures. 
 (c) Changes to Screened Coke Quality Standards. In conjunction with the annual review of the Coal Blends by the Coal Committee, or as reasonably required based on prevailing market conditions in
respect of Coal availability and price, Purchaser may request reasonable revisions to the Screened Coke Quality Standards. Promptly after receipt of Purchaser’s request, Seller will enter into good faith discussions with Purchaser regarding
such changes; provided, however, Seller will not be required to make any adjustment that would have a detrimental effect on (i) Coal Blend Standards; (ii) Seller’s economic returns (including the operating or capital costs associated
with the Plant, the “threshold” or “reject” Screened Coke Quality Standards), and/or (iii) contracts between Seller and third parties including Coal purchase contracts. Any increase or decrease in costs and charges
associated with any such change shall be for the account of Purchaser. If the Parties are unable to reach agreement as respects any such proposed revisions, then such dispute shall be subject to the dispute resolution procedures set forth in Article
IX. 
 5.2 Title. Seller warrants that at the time of delivery of Coke or Third Party Supplied Coke to Purchaser it shall
have good title and full right and authority to transfer such Coke or Third Party Supplied Coke to Purchaser, and that the title conveyed shall be good and its transfer shall be rightful and that such Coke or Third Party Supplied Coke shall be
delivered free from any security interest or other lien or encumbrance. 
 5.3 Exclusivity. THE WARRANTIES EXPRESSLY SET
FORTH IN THIS ARTICLE V ARE EXCLUSIVE AND ARE IN LIEU OF ALL OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, IMPLIED IN FACT OR IN LAW, AND WHETHER BASED ON STATUTE, CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE. THE WARRANTY OF MERCHANTABILITY AND
WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE ARE EXPRESSLY EXCLUDED AND DISCLAIMED. 

  
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 ARTICLE VI 
 OBLIGATIONS RELATED TO COKE SUPPLY AND DELIVERIES 
 6.1 Coke
Supply during the Initial Year. During the Initial Operating Period, Seller shall sell, and Purchaser shall purchase, all Coke from the Plant as such Coke is produced and delivered to the delivery points described in Section 6.3, subject to
Purchaser’s rejection rights in respect of Nonconforming Coke; provided, however, but subject to (i) Purchaser’s compliance with its performance obligations under this Agreement in respect of compliance with the Coal Blend Standards,
blending of coals in accordance with Section 4.3, and (ii) the availability of Coals that comply with the Coal Blend Standards (collectively, the “Requirements”), following the conclusion of the Initial Operating Period and for
the balance of the Initial Year thereafter, the Coke Supply and Purchase Obligation is a fraction of such Tonnage of Coke, the numerator of which is the number of days transpiring during each such period and the denominator of which is 365.

 6.2 Coke Supply and Purchase Obligation. 
 (a) Seller’s Supply Obligation. Subject to the Requirements and Section 6.7, for each Contract Year Seller’s obligation (“Coke Supply Obligation”) in respect of the Coke
Supply and Purchase Obligation is: 
 (i) as respects the Base Case Coal Blend, not less than 95% of five hundred
seventy-eight thousand eight hundred twenty-five (578,825) Tons of Coke or, as applicable, Third Party Supplied Coke; 
 (ii) as respects each Coal Blend that contains a volatile matter content percentage which varies from the Base Case Coal Blend, not less than 95% of the Coke and Third Party Supplied Coke Tonnage provided
for in the corresponding volatile matter content percentage set forth in the attached and incorporated Schedule 6.2(a). 
 (b)
Purchaser’s Purchasing Obligation. Subject to Section 6.7 and Purchaser’s rejection rights in respect of Nonconforming Coke, Purchaser’s obligation in respect of the Coke Supply and Purchase Obligation is to purchase all
(i) Screened Coke conforming to the Screened Coke Quality Standards produced by Seller and delivered by Seller to, as applicable, the Screened Coke Conveyor Delivery Point, the Screened Coke Rail Delivery Point or the Screened Coke Truck
Delivery Point, and (ii) all Breeze produced by Seller and made available by Seller at the Breeze Delivery Point. 
 (c)
Ratability of Coke Production. In accordance with Prudent Operating and Maintenance Practices, but subject to the Requirements and Seller Force Majeure Event(s), following the Initial Operating Period Screened Coke deliveries pursuant to
Section 6.3 shall be made on a commercially reasonable ratable basis at intervals such that (subject to Seller’s Coke Supply Obligation) for any consecutive four (4) Week period, on a rolling basis, Seller shall deliver not less than
*****% of the Targeted Coke Production (the “Minimum Ratability Standard”). 
 6.3 Coke Deliveries. 

  
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 (a) Screened Coke Delivery Points. All Screened Coke deliveries by Seller to
Purchaser shall be made by conveyor to the Screened Coke Conveyor Delivery Point or, when Purchaser’s conveyor is out of service, to either (i) the Screened Coke Rail Delivery Point or (ii) the Screened Coke Truck Delivery Point as
directed by Purchaser. In the case of such deliveries to the Screened Coke Rail Delivery Point or, as applicable, the Screened Coke Truck Delivery Point caused by Purchaser’s conveyor (“Purchaser’s Conveyor”) being out of
service, (y) Purchaser shall supply all transportation (as applicable, railcars or trucks) reasonably required to deliver such Screened Coke from the Screened Coke Rail Delivery Point or, as applicable, the Screened Coke Truck Delivery Point to
the Middletown Plant, and (z) the Parties shall reasonably cooperate in scheduling such rail and truck deliveries. 
 (b)
Seller’s Rights When Purchaser Wrongfully Refuses Delivery of Coke. If Purchaser refuses or, except as set forth in Section 8.2, below, is unable to accept any delivery of Screened Coke Tonnage, and such refusal or failure is a
breach of Purchaser’s obligations under this Agreement, then without in any way limiting Seller’s remedies in respect this Agreement, (i) Purchaser shall pay Seller an amount equal to the product of the Coke Price in respect of such
Screened Coke Tonnage; (ii) Purchaser will reimburse Seller for Seller’s actual handling costs associated therewith, including reasonable storage and re-screening costs, incurred by Seller in connection with the stockpiling of such
Screened Coke Tonnage; and (iii) the moisture content of such Screened Coke Tonnage, or any blending of such Screened Coke Tonnage with other Screened Coke Tonnage performed at Purchaser’s request, shall not be required to conform to the
moisture specification set forth in the Screened Coke Quality Standards; provided, however, (y) Seller shall not be obligated to store more than one thousand five hundred (1500) Tons of Screened Coke at the Plant on behalf of the Purchaser
at any point during the Term or any renewal thereof, and (z) in the event such storage capacity is exceeded, and such exceedance results from Purchaser’s refusal or inability to accept any delivery of Screened Coke Tonnage (including, as
applicable, Purchaser’s refusal or inability to remove Screened Coke Tonnage from the Screened Coke Truck Delivery Point), then Seller shall be entitled to reduce its stockpile of Screened Coke Tonnage by delivering the same by truck to the
Middletown Plant (to a delivery point therein to be reasonably designated by Purchaser), and Seller’s reasonable direct costs in respect thereof shall be reimbursed by Purchaser to Seller on a Monthly basis in accordance with Section 3.3.
Where Seller is entitled to such reimbursement from Purchaser, it shall promptly notify Purchaser in Writing of the amount and basis for determining Seller’s direct costs, which Written notice will include reasonable support for such direct
costs; provided, however, if Purchaser fails to pay for such Screened Coke Tonnage, then Seller may resell the same upon Written notification by Seller to Purchaser of its intention to do so. Where such resale is made in good faith and in a
commercially reasonable manner, Seller shall recover the positive difference (if any) between (i) the sum of (v) the product of the applicable (A) Coke Price multiplied by (B) such Screened Coke Tonnage, plus (w) reasonable
storage and re-screening costs and degradation and handling losses in respect thereof, plus (x) any Incidental Damages in respect thereof, on the one hand, and (ii) the sum of the (y) resale proceeds in respect of such Coke Tonnage,
plus (z) expenses saved (if any) as a consequence of Purchaser’s breach. 
 (c) Breeze Storage and Deliveries.
The Parties acknowledge that (i) the Plant will incorporate storage capacity in respect of Breeze Tonnage of ***** Tons, (ii) Breeze will be delivered to Purchaser at the Breeze Delivery Point, (iii) Seller and Purchaser will
reasonably 

  
 18 

 
cooperate in scheduling Breeze deliveries, and (iv) Purchaser will provide and make available a sufficient number of trucks to load and transport Breeze Tonnage such that Seller’s
stockpile of Breeze does not exceed such storage capacity. In the event such storage capacity is exceeded, and such exceedance results from Purchaser’s refusal or inability to remove Screened Coke Tonnage from the Breeze Delivery Point, then
Seller shall be entitled to reduce its stockpile of Breeze Tonnage, and Seller’s reasonable direct costs in respect thereof shall be reimbursed by Purchaser to Seller on a Monthly basis (as a credit) in accordance with Section 3.3. Where
Seller is entitled to such reimbursement from Purchaser, it shall promptly notify Purchaser in Writing of the amount and basis for determining Seller’s direct costs, which Written notice will include reasonable support for such direct costs.

 (d) Risk of Loss. Title and all risk of loss, damage or destruction in respect of (i) Screened Coke Tonnage will
pass to and be assumed by Purchaser upon its delivery to the Screened Coke Conveyor Delivery Point or, as applicable, the Screened Coke Rail Delivery Point or the Screened Coke Truck Delivery Point, and (ii) Breeze will pass to and be assumed
by Purchaser upon its loading into trucks supplied by Purchaser at the Breeze Delivery Point; provided, however, title and risk of loss of Nonconforming Coke shall not pass to Purchaser if it is rejected by Purchaser. 

6.4 Third Party Supplied Coke. If, at any point during any Contract Year, Seller has reason to believe that it will be unable to
produce and deliver sufficient Coke to meet the minimum range set forth in Section 6.2(a) of the Coke Supply and Purchase Obligation or the Minimum Ratability Standard, then Seller shall promptly provide Written notice of the same to Purchaser
and Seller shall exercise commercially reasonable efforts to obtain Third Party Supplied Coke in respect of the product of either such shortfall (measured in Tons) multiplied by ***** (each, as applicable, a “Coke Production Shortfall”).
Furthermore, if Purchaser has a reasonable basis to conclude that Seller will be unable to deliver sufficient Coke meet such minimum range of the Coke Supply and Purchase Obligation or the Minimum Ratability Standard, then Purchaser shall provide
Written notice thereof to Seller (including the basis of such conclusion), and following Seller’s receipt of such Written notice Seller shall, within a reasonable time under the circumstances, provide Purchaser with Written reasonable
assurances that it will comply with the minimum range of the Coke Supply and Purchase Obligation or, as applicable, the Minimum Ratability Standard (collectively, “Seller’s Reasonable Assurance Obligations”). If Seller does not comply
with Seller’s Reasonable Assurance Obligations then, subject to Section 6.5, it shall exercise commercially reasonable efforts to obtain Third Party Supplied Coke in respect of such Coke Production Shortfall. The quality of such Third
Party Supplied Coke shall not exceed or, as applicable, be less than the “reject” limits set forth in Schedule 5.1. The price Purchaser shall pay for such Third Party Supplied Coke shall be the lesser of (i) the price of such Third
Party Supplied Coke (as adjusted in accordance with Schedule 5.1) delivered to the Middletown Plant, or (ii) the current Coke Price (as adjusted in accordance with Schedule 5.1). Seller shall arrange for the shipment and delivery of Third Party
Supplied Coke and shall exercise reasonable, good faith efforts to arrange for such deliveries in accordance with Purchaser’s requested delivery schedule. Promptly following the delivery to the Middletown Plant of any Third Party Supplied Coke
shipment, Seller shall deliver by facsimile transfer or electronic mail, or by such other method agreed upon by the Parties in Writing, an invoice for each such shipment to the Purchaser. Payment by Purchaser to Seller for such Third Party Supplied
Coke in respect of the Month during which it is supplied to Purchaser shall be 

  
 19 

 
made within ten (10) days following Seller’s delivery of such invoice to Purchaser; provided, however, and except as respects the occurrence of Seller Force Majeure Event(s), if
Seller reasonably determines that the Coke production capacity of the Plant is or will be less than *****% of Targeted Coke Production, and Seller is unable to establish or restore such production capacity notwithstanding its good faith and
commercially reasonable efforts to do so, then Seller’s obligation to cover such Coke Production Shortfall (either in respect of Third Party Supplied Coke or Purchaser Obtained Coke) shall not exceed twelve (12) months in duration (the
“Production Capacity Liability Limitation”). 
 6.5 Purchaser Obtained Coke. In the event Seller (i) fails
to comply with its obligations in respect of Section 6.4 (including Seller’s Reasonable Assurances Obligations and its obligation to obtain Third Party Supplied Coke sufficient to satisfy the Minimum Ratability Standard), or
(ii) notifies Purchaser that it has reason to believe that it will be unable to cover any applicable Coke Production Shortfall with Third Party Supplied Coke, then Purchaser may make commercially reasonable arrangements to acquire Purchaser
Obtained Coke sufficient to cover such Coke Production Shortfall, and Purchaser shall so notify Seller in Writing of such arrangements. Subject to the Production Capacity Liability Limitation, if the commercially reasonable price of Purchaser
Obtained Coke Tonnage plus the actual, direct costs incurred by Purchaser to deliver such Purchaser Obtained Coke Tonnage to the Middletown Plant is greater than the sum of (i) the product of (y) the current Coke Price for Coke (as
adjusted in accordance with Schedule 5.1) divided by ***** multiplied (z) by such Coke Tonnage, and (ii) the applicable Purchaser freight cost, then Seller shall reimburse Purchaser for the amount of such excess. In the event Purchaser
secures Purchaser Obtained Coke, then it shall use commercially reasonable efforts to limit its use of Purchaser Obtained Coke to the time period for which Purchaser reasonably believes, based on facts and circumstances disclosed in Writing to
Purchaser by Seller, that a Coke Production Shortfall will not be covered by Coke or Third Party Supplied Coke Tonnage. 
 6.6
Purchaser’s Conveyor. In the event Purchaser’s Conveyor is not operating as of the commencement of Coke production at the Plant such that Purchaser’s conveyor can accept all Coke deliveries, then (pending the successful
completion and testing of Purchaser’s Conveyor) all Screened Coke deliveries shall be to the Screened Coke Rail Delivery Point or Screened Coke Truck Delivery Point, and such deliveries shall be subject to the terms, conditions and requirements
in respect thereof set forth in Section 6.3. 
 6.7 Production Turndown. 

(a) To assist Purchaser in its preservation of working capital during periods when it experiences a significant reduction in the demand
for steel, AK will have the right, exercisable on or after one (1) year from the commencement of Coke sales, to nominate a Production Turndown, provided that the Production Turndown Conditions are satisfied. 

(b) Purchaser must provide Seller at least forty-five (45) days (but not more than sixty (60) days) prior Written notice (the
“Production Turndown Notice”) of its desire to nominate a Production Turndown. The Production Turndown Notice shall specify the Production Turndown Period and the quantity of Coke to be taken during the Production Turndown Period.

  
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 (c) Purchaser may increase the amount of Coke it desires to purchase during a Production
Turndown Period (a “Production Turndown Increase”) upon at least forty-five (45) days prior Written notice to Seller (the “Production Turndown Increase Notice”), provided that (i) the Coal Committee is able to procure
Coal in sufficient quantity and meeting the Coal Blend Standards to satisfy such increased Coke demand, and (ii) Purchaser and Seller are able to agree upon a revised Forecast of O&M Expenses for the remainder of the Production Turndown
Period. 
 (d) Within fifteen (15) days following its receipt of a Production Turndown Notice or a Production Turndown
Increase Notice, Seller shall prepare and provide to Purchaser a revised Forecast that sets forth in reasonable detail its good faith estimate of the O&M Expenses in respect of the Plant for the Production Turndown Period. For the avoidance of
doubt, such O&M Expenses include operating and maintenance costs in respect of the Cogeneration Plant notwithstanding the circumstance that payments in respect of electrical energy produced by such Cogeneration Plant are made pursuant to the
Related Energy Sales Agreement. Such Forecast shall be based on the criteria set forth in Section 3.1(c)(iii) as adjusted to take into account the effect of the Production Turndown or Production Turndown Increase. Such Forecast shall further be
adjusted to reflect the deferment of costs related to the Production Turndown or Production Turndown Increase, to the extent that such costs can reasonably be deferred without adversely impacting the integrity, performance or safe operation of the
Plant, as determined in Seller’s sole discretion. Within fifteen (15) days following Seller’s delivery of such Forecast to Purchaser, Seller and Purchaser shall confer in good faith for the purpose of reviewing and approving such
Forecast. If, within fifteen (15) days thereafter, the Parties do not agree upon such Forecast, then the Production Turndown or Production Turndown Increase, as applicable, shall not become effective. Neither Party shall have the right to
submit a dispute regarding the Forecast to arbitration in accordance with Section 9.2. If the Parties agree upon such Forecast, it shall be the Forecast used to determine the Forecasted O&M Component pursuant to Section 3.1(c).

 ARTICLE VII 
 CHANGES IN GOVERNMENTAL REQUIREMENTS 
 7.1 Government Mandated
Additional Expenditures. 
 (a) Notification. If, following the date of this Agreement, Seller determines that a
change in Governmental Requirements may materially burden its performance of its obligations under this Agreement, then Seller shall so notify Purchaser in Writing. Seller’s performance shall be materially burdened where any such Governmental
Requirement has a material adverse economic impact on Seller, including such impacts in respect of (i) the Screened Coke Quality Standards; (ii) the Coal Blend Standards, (iii) the Guaranteed Coke Yield Percentage; (iv) the cost
of operating or maintaining the Plant (including associated capital costs); (v) the production capacity of the Plant (including Coke and electrical energy); or (vi) Seller’s performance obligations to third parties related to Coal
purchasing, transportation or handling contracts. Such notice shall incorporate Seller’s good faith proposals for complying with those changes in Governmental Requirements, including the estimated cost thereof. 

  
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 (b) Good Faith Negotiations. During the sixty (60) day period following delivery
of any such notice, Seller and Purchaser shall negotiate in good faith to reach agreement as to (i) whether any such change in Governmental Requirements should be challenged, including the scope and manner of such challenge; and (ii) the
most economical and commercially prudent methods for complying with such change in Governmental Requirements. 
 (c)
Implementation. If such negotiations result in agreement as to whether to challenge the change in Governmental Requirements or the methods for complying with the change in Governmental Requirements, then Seller shall promptly implement such
challenge or methods as appropriate. Costs and charges associated with any such challenge (including attorneys’ and consultants’ fees, and fines and penalties) shall be borne equally by Seller and Purchaser. If no such agreement is reached
or if such challenge is unsuccessful, then Seller will implement commercially reasonable methods for complying with the change in Governmental Requirements. In connection therewith, any associated Government Mandated Additional Capital Expenditures
or Government Mandated Additional Expenses shall be performed at the lowest practicable cost at the time each such cost is incurred. 
 7.2 Government Mandated Additional Capital Expenditures. Government Mandated Additional Capital Expenditures shall have an assumed useful life equal to the greater of seven (7) Contract Years
or the remainder of the Term following completion of the Government Mandated Additional Capital Expenditures. As soon as the Government Mandated Additional Capital Expenditures have been completed, the monthly amortized cost thereof for the
remaining months of the Term will be calculated based on the applicable examples set forth in Schedule 7.2, and such allocated monthly amortized cost shall be payable by Purchaser to Seller in accordance with Section 3.3; provided, however, if
Seller incurs a Government Mandated Additional Capital Expenditure and if the remainder of the Term is less than seven (7) Contract Years, then Purchaser shall not be obligated to pay to Seller the unamortized balance of such Government
Mandated Additional Capital Expenditure. 
 ARTICLE VIII 

FORCE MAJEURE EVENT(S) 
 8.1 Seller Force Majeure Event(s). 
 (a) Seller Force Majeure Event(s) are:

 (i) acts of God, acts of the public enemy, insurrections, riots, strikes, lockouts, boycotts, floods,
interruptions to transportation, actions or inactions of a Governmental Authority, embargoes, acts of military authorities or other causes of a similar nature which wholly or partly prevent the production, transportation or delivery of Coke; or

 (ii) the unavailability of sufficient quantities of Coals utilized for any Coal Blend, or transportation
services in respect thereof; 
 provided, that no event shall constitute a Seller Force Majeure Event unless such event is beyond the reasonable
control of and without the fault or negligence of Seller and which by the exercise 

  
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of due foresight Seller could not reasonably have been expected to avoid and which Seller is unable to overcome by the exercise of due diligence and reasonable care. 

(b) Seller will provide Purchaser with prompt Written notice of the nature and probable duration of each Seller Force Majeure Event and
of the extent of its effects on Seller’s performance hereunder, including its good faith estimate of the amount of Coke, if any, Seller will be able to deliver to Purchaser during such Seller Force Majeure Event. Seller will exercise
commercially reasonable efforts to deliver to Purchaser the amount of Coke Tonnage that Seller notifies Purchaser it will be able to deliver during each Seller Force Majeure Event. 

(c) Seller will use commercially reasonable efforts to limit the effects and duration of each Seller Force Majeure Event, including (as
applicable) restoring any damaged property necessary to reinstate the obligations of Seller under this Agreement, selecting alternate Coals for a Coal Blend that, in Seller’s reasonable judgment, conforms to or reasonably approximates the Coal
Blend Standards and, to the extent reasonably possible, that is calculated to produce Screened Coke that conforms to or approximates the Screened Coke Quality Standards, and supporting Purchaser in locating alternate sources of substitute coke
Tonnage for the duration of such Seller Force Majeure Event; provided, however, nothing in this Section shall be deemed to require Seller to resolve any strike or other labor dispute except on terms that are satisfactory to Seller in its sole
discretion. Purchaser’s obligation to purchase Coke shall be limited to that portion of the Coke Tonnage (excluding Nonconforming Coke Tonnage) that Seller is able to deliver to Purchaser, but in any event not in excess of that which Seller
indicated that it could supply to Purchaser in Seller’s notice of Seller Force Majeure Event provided pursuant to Section 8.1(b). Once Seller’s ability to deliver Coke is no longer suspended as a result of the applicable Seller Force
Majeure Event, the obligations of Seller and Purchaser under this Agreement will be reinstated with a prorated portion of the remaining of the Coke Supply and Purchase Obligation in respect of the Contract Year during which Seller’s ability to
perform hereunder is no longer suspended as a result of such Seller Force Majeure Event. 
 8.2 Purchaser Force Majeure
Event(s). 
 (a) Purchaser Force Majeure Event(s) are acts of God, acts of the public enemy, insurrections, riots, strikes,
lockouts, boycotts, floods, interruptions to transportation, actions or inactions of a Governmental Authority, embargoes, acts of military authorities or other causes of a similar nature which in whole or in part prevent Purchaser from being able to
accept Coke from Seller; provided, that no event shall constitute a Purchaser Force Majeure Event unless such event is beyond the reasonable control of and without the fault or negligence of Purchaser and which by the exercise of due foresight
Purchaser could not reasonably have been expected to avoid and which Purchaser is unable to overcome by the exercise of due diligence and reasonable care. 
 (b) Purchaser will provide Seller with prompt Written notice of the nature and probable duration of each Purchaser Force Majeure Event and of the extent of its effects on Purchaser’s performance
hereunder; provided, however, during such Purchaser Force Majeure Event, Purchaser shall be obligated to purchase from Seller all Coke Tonnage that meets its requirements (it being understood that Purchaser’s Ashland Works’ blast furnace
under normal operation currently obtains all of its coke from its Ashland, Kentucky coke plant and may not 

  
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have any requirement for Coke Tonnage), in respect of any blast furnaces that may continue to be operated by Purchaser and its Affiliates during the Purchaser Force Majeure Event (such Tonnage to
be priced at the applicable Coke Price f.o.b. the Plant). 
 (c) Purchaser will use commercially reasonable efforts to limit the
effects and duration of each Purchaser Force Majeure Event, including (as applicable) restoring any damaged property necessary to fully reinstate the obligations of Purchaser under this Agreement; provided, however, nothing in this Section shall be
deemed to require Purchaser to resolve any strike or other labor dispute except on terms that are satisfactory to such Purchaser in its sole discretion. Once Purchaser’s ability to perform is no longer suspended as a result of the applicable
Purchaser Force Majeure Event, the obligations of Purchaser and Seller under this Agreement will be reinstated with a prorated portion of the remaining Coke Supply and Purchase Obligation in respect of the Contract Year during which Purchaser’s
ability to perform hereunder is no longer suspended as a result of such Purchaser Force Majeure Event. 
 ARTICLE IX

 DISPUTE RESOLUTION 
 9.1 Attempt at Resolution. Except for claims or causes of action in respect of Equitable Relief, and subject to Sections 3.1(c)(iv) and 7.1(b), should any claim, cause of action or dispute
(collectively, a “Dispute”) arise out of any of the provisions of this Agreement, the Parties shall first attempt in good faith to resolve such Dispute within thirty (30) days after either Party notifies the other that a Dispute
exists. No Party may commence an arbitration under Section 9.2 below until after the passage of such thirty (30) day period. 
 9.2 Interpretation and Dispute Resolution. 
 (a) Except as respects the
exercise or prosecution of claims or causes of action for Equitable Relief, for which the Parties shall have the right to proceed in any court of appropriate jurisdiction, any Dispute not resolved pursuant to (as applicable) Sections 3.1(c)(iv),
7.1(b) or 9.1 between the Parties arising out of or relating to this Agreement, the Related Energy Sales Agreement, the Equipment Agreement, the relationship of the Parties created by those agreements, or the breach, validity or enforceability of
those agreements shall be resolved by binding arbitration pursuant to the terms of the United States Arbitration Act, whether or not federal jurisdiction is obtained. Any and all arbitration(s) hereunder shall be conducted in Cincinnati, Ohio in
accordance with the Commercial Arbitration Rules (the “Rules”) of the American Arbitration Association. 
 (b) Any and
all such arbitration(s) shall be conducted by a panel of three (3) neutral arbitrators. The claimant shall appoint an arbitrator when it serves its demand for arbitration, the respondent shall submit an answering statement within thirty
(30) days of service of the demand for arbitration and shall at that time appoint an arbitrator, and the two Party-appointed arbitrators shall select a third arbitrator to chair the arbitration within fifteen (15) days after service of the
answering statement. If the Party-appointed arbitrators are unable to agree upon a third arbitrator, then the third arbitrator shall be appointed in accordance with the Rules. 

  
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 (c) The arbitration award by the arbitration panel shall be final and binding, shall include
interest at the Interest Rate and, unless the arbitrator panel expressly determines them not to be appropriate, shall include costs, including reasonable attorneys’ fees, together with interest at the Interest Rate. Any arbitration award may be
enforced by the state or federal courts sitting in Cincinnati, Ohio or any other court of competent jurisdiction (including any jurisdiction in which the Party against whom the award is sought to be enforced holds or keeps assets). 

(d) Upon the date of an arbitration award pursuant to this Section 9.2, if it is determined that an amount is due from one Party to
the other Party, then such amount will be paid to the Party to whom it is due within ten (10) days from the Written determination of the arbitration panel. Overdue payments shall bear interest at the Interest Rate. The failure by such Party to
pay any amount due or otherwise take the required actions within the required time hereunder shall be a Purchaser Event of Default or Seller Event of Default, as applicable. 
 9.3 Consolidation. If the Parties initiate multiple arbitration proceedings (i) relating to this Agreement, the Related Energy Sales Agreement and/or the Equipment Agreement, or (ii) for
which the subject matters are related by common questions of law or fact, then all such proceedings shall be consolidated into a single arbitral proceeding heard by the same arbitral panel. The arbitral panel shall be authorized to establish
procedures which it deems appropriate in its discretion to adjudicate consolidated Disputes, including bifurcating the issues or issuing interim awards. 
 ARTICLE X 
 REPRESENTATIONS AND WARRANTIES 

10.1 Seller’s Representations and Warranties. Seller hereby represents and warrants, as of the Effective Date, to Purchaser
as follows: 
 (a) Due Organization. Seller is a corporation duly organized and validly existing and in good standing
under the laws of the State of Delaware and has all requisite corporate power and authority to own and operate its business and properties and to carry on its business as such business is now being conducted and is duly qualified to do business in
Ohio. 
 (b) Due Authorization; Enforceability. Except for the Contingency set forth in Section 11.6(j), Seller has
full corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement is the valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, except as the
enforceability thereof may be limited by applicable bankruptcy laws affecting creditors’ right generally, and by general equitable principles regardless of whether the issue of enforceability is considered in a proceeding in equity or at law.

 (c) Non-Contravention. The execution, delivery and performance of this Agreement by Seller and the consummation of the
transactions contemplated hereby do not contravene the certificate of incorporation or by-laws of Seller and do not conflict with or result in a breach of or default under any indenture, mortgage, lease, agreement, instrument, judgment,

  
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decree, order or ruling to which Seller is a party or by which it or any of its properties is bound or affected. 
 (d) Regulatory Approvals. Except for the Contingencies, all governmental or other authorizations, approvals, orders or consents required in connection with the execution, delivery and performance
of this Agreement by Seller have been obtained or can reasonably be expected to be obtained in due course. 
 10.2
Purchaser’s Representations and Warranties. Purchaser hereby represents and warrants, as of the Effective Date, to Seller as follows: 
 (a) Due Organization. Purchaser is a corporation duly organized and validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority
to own and operate its business and properties and to carry on its business as such business is now being conducted and is duly qualified to do business in Ohio. 
 (b) Due Authorization; Enforceability. Purchaser has full corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement is the valid
and binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms, except as the enforceability thereof may be limited by applicable bankruptcy laws affecting creditors’ right generally, and by general equitable
principles regardless of whether the issue of enforceability is considered in a proceeding in equity or at law. 
 (c)
Non-Contravention. The execution, delivery and performance of this Agreement by Purchaser and the consummation of the transactions contemplated hereby do not contravene the certificate of incorporation or by-laws of Purchaser and do not
conflict with or result in a breach of or default under any indenture, mortgage, lease, agreement, instrument, judgment, decree, order or ruling to which Purchaser is a party or by which it or any of its properties is bound or affected. 

(d) Regulatory Approvals. Except for the Contingencies, all governmental or other authorizations, approvals, orders or consents
required in connection with the execution, delivery and performance of this Agreement by Purchaser have been obtained or can reasonably be expected to be obtained in due course. 

10.3 Holding’s Representations and Warranties. Holding hereby represents and warrants, as of the Effective Date, to Seller as
follows: 
 (a) Due Organization. Holding is a corporation duly organized and validly existing and in good standing under
the laws of the State of Delaware and has all requisite corporate power and authority to own and operate its business and properties and to carry on its business as such business is now being conducted and is duly qualified to do business in Ohio.

 (b) Due Authorization; Enforceability. Holding has full corporate power and authority to execute and deliver this
Agreement and to perform its obligations hereunder. This Agreement is the valid and binding obligation of Holding, enforceable against Holding in accordance with its terms, except as the enforceability thereof may be limited by applicable

  
 26 

 
bankruptcy laws affecting creditors’ right generally, and by general equitable principles regardless of whether the issue of enforceability is considered in a proceeding in equity or at law.

 (c) Non-Contravention. The execution, delivery and performance of this Agreement by Holding and the consummation of
the transactions contemplated hereby do not contravene the certificate of incorporation or by-laws of Holding and do not conflict with or result in a breach of or default under any indenture, mortgage, lease, agreement, instrument, judgment, decree,
order or ruling to which Holding is a party or by which it or any of its properties is bound or affected. 
 (d) Regulatory
Approvals. All governmental or other authorizations, approvals, orders or consents required in connection with the execution, delivery and performance of this Agreement by Holding have been obtained or can reasonably be expected to be obtained
in due course. 
 ARTICLE XI 
 DEFAULT AND REMEDIES 
 11.1 Purchaser’s Events of
Default. Purchaser shall be in default upon the occurrence of one or more of the following events (each a “Purchaser Default”): 
 (a) A Payment Default by Purchaser, which Payment Default remains uncured for ten (10) days following receipt of Written notice by Seller to Purchaser; 

(b) If Purchaser becomes Bankrupt; 
 (c) Except as provided in Section 11.1(a) hereof, if Purchaser otherwise fails to perform, observe, or comply with any other material term, condition, obligation, covenant or provision of this
Agreement, and such breach has not been corrected, cured or remedied within sixty (60) days after Written notice of such breach has been delivered to Purchaser; provided, that if such cure cannot reasonably be completed within such sixty
(60) day period, then provided Purchaser promptly commences action(s) to effect a cure and continues to prosecute such cure with reasonable diligence thereafter, such cure period shall be extended for an additional sixty (60) days; or

 (d) If an AK Event of Default (as such term is defined in the Related Energy Sales Agreement) exists under the Related Energy
Sales Agreement. 
 11.2 Seller’s Events of Default. Seller shall be in default upon the occurrence of one or more
of the following events (each a “Seller Default”): 
 (a) If Seller becomes Bankrupt; or 

(b) If Seller fails to perform, observe or comply with any other material term, condition, obligation, covenant or provision of this
Agreement, and such breach has not been corrected, cured or remedied within sixty (60) days after Written notice of such breach has been delivered to Seller, provided, that if such cure cannot reasonably be completed within such sixty
(60) day period, then provided Seller promptly commences action(s) to effect a cure and 

  
 27 

 
continues to prosecute such cure with reasonable diligence thereafter, such cure period shall be extended for an additional sixty (60) days; or 

(c) If a Middletown Event of Default (as such term is defined in the Related Energy Sales Agreement) exists under the Related Energy
Sales Agreement. 
 11.3 Pursuit of Remedies. Upon the occurrence of such an event of default, either Party may pursue
its corresponding legal remedies through the procedures set forth in Article IX. 
 11.4 Termination by Seller for Breach by
Purchaser. Upon the occurrence of (w) a Payment Default that is not cured by Purchaser with ten (10) days following receipt of Written notice by Seller to Purchaser, (x) Purchaser becoming Bankrupt, (y) an AK Event of
Default, or (z) such other Purchaser Default that is not cured prior to the expiration of the cure period set forth in Section 11.1(c), then, in addition to pursuing its remedies pursuant to Section 11.3, Seller may terminate this
Agreement effective immediately upon the delivery of Written notice thereof to Purchaser. Except for claims or causes of action in respect of Equitable Relief, any Dispute in respect of such termination right shall be subject to Article IX. Upon any
such termination, Seller shall be relieved of its obligations under this Agreement including its obligations in respect of the Coke Purchase and Supply Obligation. Furthermore, within thirty (30) days following the effective date of such
termination Purchaser shall pay to Seller the Seller’s Damages, less Mitigation Proceeds as such Mitigation Proceeds are realized by Seller pursuant to Seller’s duty to mitigate Seller’s Damages. 

11.5 Termination by Purchaser for Breach by Seller. Upon the occurrence of (i) Seller becoming Bankrupt, (ii) a
Middletown Event of Default, or (iii) such other Seller Default that is not cured prior to the expiration of the cure period set forth in Section 11.2(b) then, in addition to pursuing its remedies pursuant to Section 11.3, Purchaser
may terminate this Agreement effective immediately upon the delivery of Written notice thereof to Seller. Except for claims or causes of action in respect of Equitable Relief, any Dispute in respect of such termination right shall be subject to
Article IX. Upon such termination, Purchaser shall be relieved of its obligations under this Agreement including its obligations in respect of the Coke Purchase and Supply Obligation and its obligation (if any) to pay Government Mandated Additional
Expenditures. In addition, subject to the Production Capacity Liability Limitation, Seller shall be liable to Purchaser for the difference (if any) between the (y) price of Purchaser Obtained Coke f.o.b. the Middletown Plant, and (z) the
Coke Price that would have been payable by Purchaser to Seller for Coke Tonnage for the minimum range of the Coke Supply and Purchase Obligation (collectively, “Purchaser’s Damages”). Such Coke Price will be determined based upon the
assumed utilization of the Base Coal Blend, and a reasonable market value estimation of the Coal Cost Component in respect of such Base Coal Blend. 
 11.6 Early Termination without Event of Default. Each Party shall each have the right to terminate this Agreement at any time, which termination shall be effective immediately on delivery of
Written notice of termination to the other Party, if each of the following contingencies (“Contingencies”) has not been satisfied: 
 (a) Seller has obtained zoning approvals with respect to all of the land parcels constituting the Property reasonably required to develop and operate the Plant; 

  
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 (b) Seller has closed the acquisition of the Property in accordance with terms, conditions
and covenants that are acceptable to Seller in its sole discretion; 
 (c) Seller and Purchaser have entered into the Related
Energy Sales Agreement and all contingencies in respect thereof have been satisfied; 
 (d) Seller has entered into a Coal
handling and blending agreement with a third party, subject to the Written consent of Purchaser (which consent may be withheld by Purchaser in its sole discretion); 
 (e) Seller has entered into Coal transportation agreement(s) with selected rail carrier(s), subject to the Written consent of Purchaser (which consent may be withheld by Purchaser in its sole discretion);

 (f) All permits, approvals, licenses, allowances and authorizations have been issued by the applicable Governmental
Authorities for developing, constructing and operating Purchaser’s Conveyor, which are in form and substance acceptable to Purchaser in its sole discretion, and the appeal periods for all such permits, approvals, licenses, allowances and
authorizations expire without objection pending or any conditions not satisfactory to Purchaser pending; 
 (g) The
Administrative Appeals and the Citizen’s Suit in respect of the PTI are successfully resolved as determined by Middletown or, as applicable, the PSD/NSR Permit is issued by the Ohio Environmental Protection Agency in acceptable form and
substance as determined by Seller, and (A) any appeal, suit or challenge in respect thereof is successfully concluded as determined by Seller or, alternatively, (B) Seller elects to proceed with the Plant notwithstanding such appeal, suit
or challenge, it being expressly understood by Purchaser that such determinations and election are within the sole discretion of Seller; 
 (h) Seller has acquired all rights reasonably required, as determined by Seller in its sole discretion, for the transportation and delivery of Coals by way of a rail spur located approximately at mile
post CJ231.7 and known as the “MADE Rail Spur”; 
 (i) Seller has obtained the ACE Permit for the construction of the
Plant, which ACE Permit is in form and substance acceptable to Seller in its sole discretion, and all appeal periods for the ACE Permit have expired without objection pending or any conditions not satisfactory to Seller pending; and 

(j) The boards of directors of Sunoco and Holding have approved this Agreement, the Related Energy Sales Agreement and the Equipment
Agreement, and (as applicable) all related transaction documents to which they or their Affiliates are parties, in the sole discretion of each such board of directors, which approval may be subject to the satisfaction of the remaining Contingencies.

 11.7 No Release of Accrued Obligations. No termination of this Agreement shall release either Party from any
obligations (including those arising out of a breach of this Agreement) that may have accrued under this Agreement prior to such termination. 

  
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 ARTICLE XII 
 MISCELLANEOUS PROVISIONS 
 12.1 Seller’s Indemnification of
Purchaser for Infringement. Seller shall indemnify, defend and hold Purchaser, its Affiliates and their successors and assigns, officers, directors, employees and agents harmless from any and all actions, causes of action, claims, demands,
costs, liabilities, expenses and damages (including reasonable attorneys’ fees and costs) incurred by any of them as a result of the design, construction or operation of the Plant infringing in whole or in part any copyright, patent, trade
secret, or other proprietary right held by any third party. 
 12.2 Notices. All notices, requests and demands to or upon
the Parties to be effective shall be in Writing. Except for invoices, such communications shall be addressed and directed to the Parties listed below as follows, or to such other address or recipient as either Party may designate in Writing:

  

			
	 If to Seller to:
	 	If to Purchaser to:
		
	 Middletown Coke Company, Inc.,
	 	AK Steel Corporation
	 c/o SunCoke Energy, Inc.
	 	9227 Centre Pointe Drive
	 Parkside Plaza
	 	West Chester, OH 45069
	 11400 Parkside Drive
	 	
	 Knoxville, TN 37934
	 	
	 Attention:
	 	Attention:
	 Senior Vice President and General Counsel
	 	General Counsel
	 Fax: (865) 288-5280
	 	Fax: (513) 425-5607
	 Confirm: (865) 288-5213
	 	Confirm: (513) 425-2690

 12.3 Limitation of Liability; Exclusive Remedies. EXCEPT TO THE EXTENT SELLER’S DAMAGES (AS
DEFINED IN APPENDIX A) OR PURCHASER’S DAMAGES (AS SET FORTH IN SECTION 11.5 ABOVE) MAY BE CONSTRUED TO INCLUDE CONSEQUENTIAL DAMAGES, NEITHER SELLER NOR PURCHASER NOR ANY OF THEIR RESPECTIVE AFFILIATES OR ASSIGNEES SHALL BE LIABLE, WHETHER
BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE), WARRANTY, STRICT LIABILITY OR ANY OTHER LEGAL THEORY FOR ANY CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES (INCLUDING DAMAGES IN RESPECT OF EXISTING OR FUTURE LOST PROFITS), OR FOR SPECIAL, EXEMPLARY
OR PUNITIVE DAMAGES OF ANY KIND IN RESPECT OF ANY BREACH(ES) OF THIS AGREEMENT OR OTHERWISE. EXCEPT WHERE THIS AGREEMENT EXPRESSLY PROVIDES FOR EQUITABLE RELIEF, THE REMEDIES OF THE PARTIES SET FORTH IN THIS AGREEMENT ARE EXCLUSIVE. 

12.4 Rules of Interpretation. Defined terms in this Agreement shall include in the singular number the plural and in the plural
number the singular. Unless otherwise expressly specified, any agreement, contract or document defined or referred to herein shall mean such agreement, contract or document as the same may hereafter be amended, supplemented or otherwise modified
from time to time. The words “include”, “includes”, and “including” shall 

  
 30 

 
not be limiting and shall be deemed in all instances to be followed by the phrase “without limitation”. References to “days” shall mean calendar days unless otherwise
indicated. The Schedules to this Agreement shall form part of this Agreement for all purposes. References herein to Articles, Sections or Schedules shall mean such Articles, Sections or Schedules of or to this Agreement. 

12.5 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Ohio without
regard to its conflicts of law provisions, and the rights and remedies of the Parties hereunder will be determined in accordance with such laws. 
 12.6 Severability. If any provision of this Agreement is found by a court of competent jurisdiction to be prohibited or unenforceable, it shall, as to such jurisdiction, be ineffective only to the
extent of such prohibition or unenforceability, and such prohibition or unenforceability shall not invalidate the balance of such provision to the extent it is not prohibited or unenforceable, nor invalidate the other provisions of this Agreement.

 12.7 Confidentiality. Each Party and its Affiliates shall keep all information provided by one Party to the other,
including this Agreement, the Related Energy Sales Agreement and the Equipment Agreement, and the terms thereof (including the Coke Price and charges payable pursuant to the Related Energy Sales Agreement) strictly confidential and will not disclose
any such information to any third party; provided, however, (i) Seller may disclose this Agreement to prospective investors in, and Lenders to, Seller subject to Purchaser’s approval of terms and conditions in respect of the
confidentiality of such disclosure, which approval shall not be unreasonably withheld, conditioned or delayed by Purchaser; (ii) if either Party becomes legally required (by oral questions, interrogatories, request for information or documents,
orders issued by any Governmental Authority, or any other process) to disclose such information, such Party will give prior notice to the other Party of the requirement and the terms thereof and shall cooperate with the other Party to minimize the
disclosure of the information, seek a protective order or other appropriate remedy, and if such protective order or other remedy is not obtained, then such Party will furnish only that portion of such information that it is legally required to
furnish; and (iii) either Party may disclose this Agreement and the terms hereof to the extent that such disclosure is required under the Securities Act of 1933, the Securities Exchange Act of 1934 or the rules and regulations promulgated
thereunder, or by the rules of any applicable securities exchange. Notwithstanding the foregoing, this Section 12.6 shall not apply to such information that was (x) previously known by the Party receiving such information without
obligation of confidentiality, (y) in the public domain (either prior to or after the furnishing of such documents or information hereunder) through no fault of such receiving Party, or (z) later acquired by such receiving Party, without
obligation of confidentiality, from another source not having an obligation of confidentiality to the disclosing Party. 
 12.8
Entire Agreement. This Agreement (including Appendix A and the Schedules attached hereto), the Related Energy Sales Agreement, and the Equipment Agreement, as a single integrated transaction, constitute the entire agreement among the Parties
concerning the subject matter thereof and supersede and cancel any prior agreements, representations, warranties, or communications, whether oral or written, among the Parties regarding the transactions contemplated by, and the subject matter of,
this Agreement. The provisions of this 

  
 31 

 
Agreement shall not be amended, reformed, altered, or modified in any way by any practice or course of dealing prior to or during the term of this Agreement, and can only be amended, reformed,
altered, or modified by a Writing signed by an authorized representative of each of the Parties. The Parties specifically acknowledge that they have not been induced to enter into this Agreement by any representation, stipulation, warranty,
agreement, or understanding of any kind other than as expressed in this Agreement, the Related Energy Sales Agreement, and the Equipment Agreement. 
 12.9 Survival. The obligations of the Parties pursuant to Article IX, Sections 7.2, 11.3, 11.4, 11.5, 11.7, 12.1, 12.2, 12.3, 12.5, 12.6 12.7, 12.8, 12.9, 12.12, 12.18 and 12.19 shall survive the
termination of this Agreement. 
 12.10 Captions. The captions and headings in this Agreement are for convenience of
reference purposes only and have no legal force or effect. Such captions and headings shall not be considered a part of this Agreement for purposes of interpreting, construing or applying this Agreement and will not define, limit, extend, explain or
describe the scope or extent of this Agreement or any of its terms and conditions. 
 12.11 Construction of Agreement.
This Agreement shall be construed as a contract of purchase and sale of goods. 
 12.12 Independent Contractor. Neither
Party to this Agreement is the partner, legal representative or agent of the other, nor shall either Party have the right or authority to assume, create or incur any liability or any obligation of any kind implied, against or in the name or on
behalf of the other Party. 
 12.13 Waivers and Remedies. The failure of either Party to insist in any one or more
instances upon strict performance of any of the provisions of this Agreement or to take advantage of any of its rights hereunder shall not be construed as a waiver of any such provisions or the relinquishment of any such rights, but the same shall
continue and remain in full force and effect. Except as otherwise expressly limited in this Agreement, all remedies under this Agreement shall be cumulative and in addition to every other remedy provided for herein or by law. 

12.14 Assignability. No Party shall Assign any of its rights or obligations under this Agreement, including to any Affiliate of a
Party, without also assigning the Related Energy Sales Agreement and (as applicable) the Equipment Agreement, and obtaining the prior Written consent of the other Party. Such consent shall not be unreasonably withheld, conditioned or delayed.
Notwithstanding the foregoing, Purchaser and Holding hereby consent to the granting of a security interest in and a collateral assignment by Seller of this Agreement and its rights herein to any Person that provides debt, loans, credit or credit
support, acts as counterparty on any interest rate hedging arrangements, or provides other financing, or any successor, assign or designee thereof, to Seller in connection with any financing related to the Plant (collectively, the
“Lenders”). In furtherance of the foregoing, Purchaser and Holding acknowledge that the Lenders may under certain circumstances assume the interests and rights of Seller under this Agreement; provided, that if following such assumption the
Lenders seek to sell the Plant and assign this Agreement to the purchaser of the Plant, they will not sell the Plant to a Person that (i)

  
 32 

 
has a greater than 50% ownership interest in one or more Steel Making Facilities in North America, or (ii) is a direct supplier of iron ore to Purchaser pursuant to a contract with a term of
greater than one year pursuant to which the quantity of iron ore sold exceeds 25% of Purchaser’s annual iron ore requirements (an “Iron Ore Supplier”). Seller shall be relieved of and released from its obligations under this Agreement
from and after such assumption. 
 12.15 Further Assurances. From time to time after the Effective Date and without
further consideration, the Parties shall take such other action, and execute such other documents and instruments, as either Party may reasonably request to more effectively carry out the transactions contemplated by this Agreement. 

12.16 Cooperation with Financing Efforts. Purchaser and Holding shall reasonably cooperate with Seller’s efforts in obtaining
and maintaining financing on a non-recourse (or other) basis for the Plant. Without limiting the generality of the foregoing, Purchaser and Holding shall: (i) execute such documents (including consent agreements and legal opinions) as Seller or
the Lenders will reasonably request in view of obtaining and maintaining such financing whereby Purchaser and/or Holding (a) certify to the Lenders that this Agreement is in full force and effect and has not been modified or amended and that
there are no defaults under this Agreement by Purchaser or Holding or, to Purchaser’s or Holding’s knowledge, by Seller (except, in each case, as specifically stated in such certification), (b) represent and warrant to the Lenders
that this Agreement is enforceable against Purchaser and Holding, (c) consent to the collateral assignment of this Agreement to the Lenders as security for the debt relating to the Plant, (d) agree to make payments to accounts as notified
by Seller from time to time, (e) agree to give the Lenders notice of and a reasonable opportunity to cure any defaults of Seller under this Agreement, and (f) clarify provisions of this Agreement as reasonably requested by the Lenders or
Seller without increasing Purchaser’s or Holding’s liability hereunder; (ii) accompany Seller on a reasonable number of presentations to potential Lenders; and (iii) provide information (including financial information and, as
requested by the Lenders from time to time, the names of all Iron Ore Suppliers) about Purchaser and Holding as the Lenders may reasonably request. Seller shall reimburse each of Purchaser and Holding for its reasonable and documented out-of-pocket
costs and expenses incurred in connection with actions taken pursuant to this Section 12.16, including reasonable fees and expenses of outside counsel retained to provide a legal opinion as contemplated by clause (i) above. 

12.17 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors
and permitted assigns. 
 12.18 No Third Party Beneficiaries. Except as otherwise expressly set forth herein, the terms
and conditions of this Agreement are solely for the benefit of the Parties and no other Person shall have any rights hereunder. 

12.19 Mutuality of Drafting. The Parties hereby stipulate and agree that each of them fully participated and was adequately
represented by counsel in the negotiation and preparation of this Agreement and the Parties further stipulate and agree that in the event of an ambiguity or other necessity for the interpretation to be made of the context of this Agreement, this
Agreement shall not be construed in favor of or against Seller or Purchaser as a consequence of one Party 

  
 33 

 
having had a greater role in the preparation of this Agreement, but shall be construed as if the language were mutually drafted by both Parties will full assistance of counsel. 

12.20 Counterparts Facsimile Signatures. This Agreement may be executed in one or more counterparts and by the different Parties
hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and same instrument. Any executed counterpart may be delivered by facsimile, and when so delivered,
shall be legally enforceable in accordance with its terms. Any such facsimile shall be follows by delivery, as promptly as practicable, of a non-facsimile original. 
 12.21 No Setoff. Each payment by Purchaser or by any other Person on its behalf to Seller pursuant to this Agreement shall be made without offset, abatement, withholding or reduction of any kind.

 12.22 Audits. Seller shall, upon reasonable prior notice and no more than once per year, allow a firm of independent
certified public accountants retained by, and at the sole cost and expense of, Purchaser to review aspects of Seller’s operations at the Plant solely to enable such firm to advise Purchaser regarding the proper accounting treatment of this
Agreement. 

  
 34 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
respective duly authorized officers as of the date first above written. 
  

									
	MIDDLETOWN COKE COMPANY, INC.	 		 	AK STEEL CORPORATION
					
	By:	 	        /s/ Michael Thomson	 		 	By:	 	        /s/ John Kaloski
					
	Name:	 	        Michael Thomson	 		 	Name:	 	        John Kaloski
					
	Title	 	        President	 		 	Title:	 	        S.V.P. Operations

 AK Steel Holding Corporation executes this Agreement solely for the purpose of affirming its obligation pursuant to
Sections 1.6, 1.7, 10.3, 12.14 and 12.16. 
  

			
	AK STEEL HOLDING CORPORATION
		
	By:	 	        /s/ John Kaloski
		
	Name:	 	        John Kaloski
		
	Title	 	        S.V.P. Operations

  
 35 

 APPENDIX A 
 Definitions 
 The definitions of certain capitalized terms are as follows: 

“ACE Permit” means the permit required to be obtained from the United States Army Corps of Engineers to perform the
necessary stream crossings in connection with the construction of the Plant, which Seller has applied for pursuant to the Application for Department of the Army Permit (33 CFR 325) dated June 6, 2008. 

“Actual O&M Component” has the meaning set forth in Section 3.1(c)(vi). 

“Adjusted Fixed Price Component” has the meaning set forth in Section 3.1(b)(ii). 

“Administrative Appeals” means the three administrative appeals filed by three interested parties concerning the PTI
before the Ohio Environmental Review Appeals Commission. 
 “Affiliate” means any Enterprise that directly or
indirectly controls, or is controlled by, or is under common control with any Party. For purposes of this definition, “control” of an Enterprise means the power, directly or indirectly, either (a) to vote 50% or more of the securities
having ordinary voting power for the election of directors of such Party or Enterprise; or (b) to direct or cause the direction of the management and policies of such Party or Enterprise, whether by ownership interest, contract or otherwise.

 “Agreement” means the Amended and Restated Coke Purchase Agreement between the Parties dated
September 1, 2009 together with all Written amendments, revisions and modifications hereof made pursuant to Section 12.8. 
 “Assign” means assigning or delegating any of the rights or obligations of the Parties to any enterprise, or either Party selling, leasing, transferring or voluntarily disposing of all or
a substantial portion of its assets. 
 “ASTM Standards” means procedures and standards adopted or approved by
the American Society for Testing and Materials. 
 “Bankrupt” means, with respect to any Party or its permitted
assignee: 
 (a) applying for or consenting to the appointment of, or the taking of possession by, a receiver,
custodian, trustee or liquidator of itself or of all or a substantial part of its property; 
 (b) making a
general assignment for the benefit of its creditors; 
 (c) commencing a voluntary case under any bankruptcy
code, as now or hereafter in effect (“Bankruptcy Code”); 

  

APPENDIX A 
 PAGE 1 

 (d) filing a petition seeking to take advantage of any other law relating to
bankruptcy, insolvency, reorganization, winding-up, or composition or readjustment of debts; 
 (e) taking any
action for the purpose of effecting any of the foregoing; or 
 (f) being a defendant, respondent, alleged
debtor, or otherwise having commenced against it, in any court of competent jurisdiction, a proceeding or case under the Bankruptcy Code or a case seeking: 
  

	 	(i)	its liquidation, reorganization, dissolution or winding-up, or the composition or readjustment of its debts; 

 

	 	(ii)	the appointment of a trustee, receiver, custodian, liquidator or the like, of such Party or Enterprise or of all or any substantial part of its property; or

  

	 	(iii)	similar relief under any law relating to bankruptcy, insolvency, reorganization, winding-up, or composition or adjustment of debts; and such proceeding or case shall
continue undismissed, or an order, judgment or decree approving or ordering any of the foregoing shall be entered and continue unstayed and in effect, for a period of sixty (60) or more days; or an order for relief against such Party or
Enterprise shall be entered in a case under the Bankruptcy Code. 

 “Bankruptcy Code” has the
meaning set forth in the definition of “Bankrupt”. 
 “Base Case Coal Blend” means a Coal Blend
having a volatile matter content of *****% and a moisture content of *****%. 
 “Breeze” means Coke, which
following screening based upon Purchaser’s sizing instructions, is sized less than the applicable size fraction in respect of such Coke screening. 
 “Breeze Delivery Point” means the delivery point in respect of Breeze reasonably designated by Seller adjacent to the Breeze storage area located within the Plant. 

“Business Day” means any day except Saturday, Sunday and any day which shall be in Cincinnati, Ohio a legal holiday or a
day on which banking institutions are authorized or required by law or other government action to close. 

“By-Products” means all output of the Plant excluding Coke, but specifically including waste heat, steam and electrical
energy. 
 “Citizen’s Suit” means the citizen’s suit filed in the United Sates District Court for the
Southern District of Ohio styled City of Monroe, Ohio v. Middletown Coke Company, Inc. and SunCoke Energy, Inc.  

  

APPENDIX A 
 PAGE 2 

 “Coal(s)” means metallurgical coking coals that are reliable and readily
available for use in any actual or proposed Coal Blend. 
 “Coal Blend” means each coal blend selected by the
Coal Committee and, as applicable, any coal blend selected by Seller pursuant to Section 4.3. 
 “Coal Blend
Standards” means the standards for selecting the Coal Blends. Those standards require that each Coal Blend consists of (i) not more than ***** (*****) Coals; (ii) Coals having a minimum FSI of *****; (iii) actually produce
Coke that will reasonably conform to the “mean” Screened Coke Quality Standards set forth in Schedule 5.1 or any successor standards; (iv) have a volatile matter component of not less than *****% and not more than *****%;
(v) allow for safe, reliable and efficient operation of the Plant; and (vi) allow for the operation of the Plant in accordance with Governmental Requirements. 
 “Coal Committee” means the committee comprised of one (1) representative of Purchaser and one (1) representative of Seller that selects, subject to Section 4.1, each Coal
Blend for use in the production of Coke as particularly described in Section 4.1. 
 “Coal Costs” has the
meaning set forth in Section 3.1(d)(i). 
 “Coal Cost Component” has the meaning set forth in
Section 3.1(d)(ii). 
 “Coal Handling Losses” means losses associated with the storage and handling of the
Coals, and are accounted for in the manner set forth in Section 3.1(d)(iv). 
 “Cogeneration Plant” has
the meaning set forth in Section 1.2. 
 “Coke” means “run of oven” blast furnace coke that is
produced and that Seller delivers to Purchaser pursuant to this Agreement. Coke does not include any By-Products. 

“Coke Price” has the meaning set forth in Section 3.1(a). 

“Coke Price Discount” has the meaning set forth in Section 5.1(b)(v). 

“Coke Production Shortfall” has the meaning set forth in Section 6.4. 

“Coke Purchase Shortfall” means the sum of the Monthly Coke Purchase Shortfall amounts during the relevant Production
Turndown Period. 
 “Coke Supply and Purchase Obligation” has the meaning set forth in Section 6.2.

 “Coke Supply Obligation” has the meaning set forth in Section 6.2(a). 

“Contingencies” has the meaning set forth in Section 11.6. 

“Contract Year” means each respective calendar year transpiring during the Term following the Initial Year. 

“Dispute” has the meaning set forth in Section 9.1. 

  

APPENDIX A 
 PAGE 3 

 “Due Date” has the meaning set forth in Section 3.3(d). 

“Effective Date” has the meaning set forth in the introductory paragraph to this Agreement. 

“Equipment Agreement” has the meaning set forth in the introductory paragraph to this Agreement. 

“Equitable Relief” means, in the context of the exercise or prosecution of claims or causes of actions, any claim or
cause of action for immediate relief (such as a Seller’s remedies to stop goods in transit, withhold or refuse delivery, reclaim or replevy goods and resell goods), or in respect of equitable relief (such as temporary and permanent injunctive
relief, and specific performance). 
 “Estimated Coke Tonnage” has the meaning set forth in
Section 3.3(a). 
 “Fixed Price Component” has the meaning set forth in Section 3.1(b)(i).

 “Forecast” has the meaning set forth in Section 3.1(c)(ii). 

“Forecasted O&M Component” has the meaning set forth in Section 3.1(c)(v). 

“Government Mandated Additional Capital Expenditures” means capital expenditures affecting the Plant for which an
equally reliable and safe non-capital expenditure alternative that by itself is not reasonably available and economically feasible and which are required due to changes in Governmental Requirements made after the date of this Agreement (or with
respect to compliance standards not reasonably ascertainable as of the date of this Agreement). 
 “Government Mandated
Additional Expenses” means the actual operating or maintenance expenses affecting the Plant, as well as all economic impacts other than those that require additional capital, which are required due to changes in Governmental Requirements
made after the date of this Agreement (or with respect to compliance standards not reasonably ascertainable as of the date of this Agreement) including consideration paid by Seller for emission offsets or credits in respect of greenhouse gases
(including carbon dioxide). 
 “Government Mandated Additional Expenditures” means, collectively, Government
Mandated Additional Capital Expenditures and Government Mandated Additional Expenses. 
 “Governmental
Authority(ies)” means any federal, state or local government, and political subdivision(s) thereof, and any
 entity(ies) exercising executive, legislative, judicial, regulatory or administrative functions having or pertaining to
government. 
 “Governmental Requirements” means any applicable law, regulation and regulatory order (and any
official interpretations thereof) of any Governmental Authority in respect of the operation of the Plant, including any such law, regulation or regulatory order relating to environmental compliance by Seller with respect to the operation of the
Plant. 
 “Guaranteed Coke Yield Percentage” has the meaning set forth in Section 3.1(d)(vi). 

  

APPENDIX A 
 PAGE 4 

 “Guidelines” has the meaning set forth in Section 3.1(c)(iii).

 “Holding” has the meaning set forth in Section 1.6. 

“Incidental Damages” means incidental damages allowed under Ohio Revised Code Section 1302.84, or as allowed
pursuant to any amendment or re-codification thereof. Such damages specifically include commercially reasonable storage and re-screening costs, and degradation and handling losses, incurred by Seller in connection with stockpiling of Coke or Third
Party Coke. 
 “Indenture” means the “Indenture” dated as of June 11, 2002 by and among
Purchaser, Holding, Douglass Dynamics, L.L.C. and Fifth Third Bank, including (as applicable) any amendment(s) thereto or extension(s) thereof. 
 “Index Formula” means the percentage increase or, as applicable, decrease in the Employment Cost Index – Union Manufacturing (Series Id: CIU2013000000510I (B)) published by the
United States Department of Labor, Bureau of Labor Statistics, or any inflation index that succeeds or replaces it for the twelve (12) most recent months of available data preceding the commencement of the applicable Contract Year. 

“Initial Operating Period” means the period from the commencement of Coke production at the Plant through the last day
of the calendar Month following the date Seller notifies Purchaser in Writing that the Plant has demonstrated the commercial capability of producing Coke at its full production level of the Plant capacity; provided, however, if such notification
does not occur within one hundred eighty (180) days following the commencement of Coke production, then the Initial Operating Period shall be deemed to end as of the expiration of such one hundred eighty (180) day period. 

“Initial O&M Component” has the meaning set forth in Section 3.1(c)(i). 

“Initial Year” has the meaning set forth in Section 3.1(a)(i). 

“Interconnection Costs” has the meaning set forth in Section 3.4(a). 

“Interest Rate” means an interest rate equal to *****% above the rate announced by JPMorgan Chase Bank, N.A. as its
prime rate at the date of accrual of the late payment (provided that the prime rate may not be the lowest rate of interest charged by JPMorgan Chase Bank, N.A. to its customers) or at the highest interest rate permitted by applicable law, whichever
interest rate is lower. 
 “Iron Ore Supplier” has the meaning set forth in Section 12.14. 

“Lenders” has the meaning set forth in Section 12.14. 

“Lost Energy Charge” has the meaning set forth on Schedule A-1. 

“Manifest Error” means an arithmetical error. 

  

APPENDIX A 
 PAGE 5 

 “Middletown Plant” means Purchaser’s steel plant works located in
Middletown, Ohio. 
 “Minimum Ratability Standard” has the meaning set forth in Section 6.2(c).

 “Mitigation Proceeds” means: 
 In respect of Coke sales, any (positive) difference between: 
  

	 	(i)	The sum of the sales proceeds arising from third party Coke sales plus any costs and expenses saved by Seller in connection therewith, minus 

 

	 	(ii)	The sum of (i) the product of the (y) Coke Price multiplied by (z) the Coke Tonnage that is sold to such third parties, plus (ii) any other
Incidental Damages incurred by Seller. 

 “Moisture Adjusted Coal Blend Tonnage” has the meaning
set forth in Section 3.1(d)(iii). 
 “Month(s)” or “Monthly”, as applicable, refers to
each calendar Month, beginning at 12:00 midnight on the last day of the preceding Month and ending at 12:00 midnight on the last day of such calendar Month, transpiring in whole or in part during the Term. 

“Monthly Coke Purchase Shortfall” means, for any Month during any Production Turndown Period, the difference between
(a) forty-eight thousand two hundred thirty-five (48,235) Tons of Coke, and (b) the actual amount of Coke purchased by Purchaser during such Month. 
 “Nonconforming Coke” has the meaning set forth in Section 5.1(b)(iii). 
 “O&M Expenses” means (i) all costs, expenses and fees incurred by Seller in respect of operating and maintaining the Plant, and in complying with the Coke delivery and supply
obligations of Seller under this Agreement, all of which shall be consistent with accounting principles generally accepted in the United States of America, plus (ii) all Taxes in respect of all such costs, expenses and fees, plus
(iii) property taxes in respect of the Plant; provided, however, O&M Expenses include in any event Government Mandated Additional Expenses except where (subject to Section 7.1(c)), such Government Mandated Additional Expenses are
inclusive of fines or penalties in respect of violations of Governmental Requirements (including fines or penalties in respect of violations of Governmental Requirements pertaining to the environment, and employee health and safety). 

“Other Realized Value” has the meaning set forth in Section 3.2(c). 

“Parties” means Purchaser and the Seller. 
 “Party” means either Purchaser or Seller, depending upon the context in which the term is used. 

  

APPENDIX A 
 PAGE 6 

 “Payment Default” means any failure by Purchaser to pay Seller in
accordance with Article III (including the payments in respect of the Coke Price and the adjustments thereto), Section 9.2(c), or Article VII. 
 “Person” means any individual, corporation, limited liability company, association, partnership, joint venture, trust or other enterprise or unincorporated organization or any
Governmental Authority. 
 “Plant” has the meaning set forth in Section 1.2. 

“Presumed O&M Expenses” has the meaning set forth in Section 3.1(c)(iv). 

“Production Capacity Liability Limitation” has the meaning set forth in Section 6.4. 

“Production Turndown” means any reduction in the purchase of Coke in an amount of up to ***** Tons of Coke per month,
which may not exceed twelve (12) consecutive Months and which Seller shall make commercially reasonable efforts to achieve if requested by Purchaser, provided that any reduction in an amount greater than ***** Tons of Coke per month shall be
subject to operational and technical limitations at the Plant, in each case as determined in Seller’s sole discretion. 

“Production Turndown Adjustment Fee” has the meaning set forth in Section 3.7. 

“Production Turndown Conditions” means each of the following conditions that must be satisfied for Seller to
nominate a Production Turndown: (i) Purchaser has experienced a sustained decrease in demand for steel that results in a significant decrease in blast furnace production at its steel plants, including temporary idling of one or more of the
blast furnaces at its steel plants, (ii) Purchaser has not procured other coke or, in the case of its blast furnace #3 at the Middletown Plant, injected pulverized coal, as a replacement or substitute for purchased Coke Tonnage under this
Agreement, (iii) Purchaser has turned down production at all coke facilities owned or leased by Purchaser or its Affiliates by at least 25%, (iv) Purchaser has exercised commercially reasonably efforts to suspended all purchases of coke
from other Persons under existing contracts, and (v) prior Coal supply obligations committed or agreed to by the Coal Committee will not adversely affect Seller in connection with the Production Turndown. 

“Production Turndown Increase” has the meaning set forth in Section 6.7(c). 

“Production Turndown Increase Notice” has the meaning set forth in Section 6.7(c). 

“Production Turndown Notice” has the meaning set forth in Section 6.7(b). 

“Production Turndown Period” means any period during which a Production Turndown is in effect. 

“Property” has the meaning set forth in Section 1.2. 

“Prudent Operating and Maintenance Practices” means the practices, methods, standards and procedures generally accepted
and followed by a prudent, diligent, skilled and experienced 

  

APPENDIX A 
 PAGE 7 

 
manager and operator acting in accordance with standards generally utilized in the United States, with respect to the management, operation and maintenance of manufacturing facilities having
similar characteristics to the Plant which, at the particular time in question, in the exercise of reasonable judgment and in light of facts then known or that reasonably should have been known at the time a decision was made, would be expected to
accomplish the desired results and goals, including such goals as efficiency, reliability, economy and profitability, in a manner consistent with Governmental Requirements. 
 “PSD/NSR Permit” means Seller’s application for permit # P0104768 dated as of July 17, 2009 and filed with the Ohio Environmental Protection Agency. 

“PTI” means the “Permit to Install” issued by the Ohio Environmental Protection Agency. 

“Purchaser” has the meaning set forth in the introductory paragraph to this Agreement. 

“Purchaser’s Conveyor” has the meaning set forth in Section 6.3(a). 

“Purchaser’s Damages” has the meaning set forth in Section 11.5. 

“Purchaser Default” has the meaning set forth in Section 11.1. 

“Purchaser Force Majeure Event(s)” has the meaning set forth in Section 8.2. 

“Purchaser Obtained Coke” means screened coke obtained by Purchaser, which is (i) nominally sized between *****,
(ii) in respect of any shortfall in Seller’s delivery of Coke relative to the product of the minimum range of the Coke Supply and Purchase Obligation multiplied by *****, and (iii) not otherwise covered by Seller through its supply of
Third Party Supplied Coke to Purchaser. 
 “Railroad Deficit Charge” means, during any Production Turndown
Period, any charge payable by Middletown pursuant to any transportation contract for Coal delivered to the Plant as a result of reduced coal throughput due to such Production Turndown. 

“Recomputed Section 45 Credit Amount” has the meaning set forth in Section 3.2(f). 

“Related Energy Sales Agreement” has the meaning set forth in the introductory paragraph to this Agreement. 

“Requirements” has the meaning set forth in Section 6.1. 

“Rules” has the meaning set forth in Section 9.2(a). 

“Screened Coke” means the portion of Coke that conforms to the size requirement set forth in the Screened Coke Quality
Standards. 
 “Screened Coke Conveyor Delivery Point” means the delivery end of Seller’s Screened Coke
conveyor belt that connects the Plant to Purchaser’s Screened Coke conveyor area located 

  

APPENDIX A 
 PAGE 8 

 
within the Middletown Plant. The Parties acknowledge that such interface will be located at or near the property line between the Property and Middletown Plant. 

“Screened Coke Quality Standards” are the guaranteed quality parameters for Coke set forth in Schedule 5.1, and as such
Schedule is amended in accordance with Section 5.1(c). 
 “Screened Coke Rail Delivery Point” means the
means the rail load out within the Plant, in respect of Screened Coke deliveries into railcars supplied by Seller. 

“Screened Coke Truck Delivery Point” means the location within the Plant, to be reasonably designated by Seller and
Purchaser, for Screened Coke deliveries to trucks supplied by Seller. 
 “Section 45 Credits” has the meaning
set forth in Section 3.2(a). 
 “Section 45 Qualification Deadline” has the meaning set forth in
Section 3.2(g). 
 “Section(s)” are the sections and subsections of the Articles contained in this
Agreement. 
 “Seller” has the meaning set forth in the introductory paragraph to this Agreement. 

“Seller Default” has the meaning set forth in Section 11.2. 

“Seller Force Majeure Event(s)” has the meaning set forth in Section 8.1. 

“Seller’s Damages” include, subject to Seller’s Mitigation Proceeds, (i) any amounts due by Purchaser to
Seller under this Agreement as of the effective date of termination; (ii) the present value, discounted at the rate of *****%, of (w) the product of (A) the Fixed Price Component multiplied by (B) the Targeted Coke Production in
respect of the Base Coal Blend for each complete or partial Contract Year remaining in the Term (provided, for such Contract Years having less than 365 days, the foregoing amount is to be multiplied by a fraction, the numerator of which is the
number of days in such Contract Year, and the denominator of which is 365); and (iii) the balance of all of the remaining Government Mandated Additional Capital Expenditures that would be payable by Purchaser as of the date of termination but
for such termination; provided, however, if the Agreement is terminated prior to or during the Initial Year, then the Fixed Price Component shall be multiplied by fifteen (15) Contract Years. 

“Seller’s Reasonable Assurance Obligations” has the meaning set forth in Section 6.4. 

“Steel Making Facilities” means steel making facilities that utilize a blast furnace and basic oxygen furnace or
electric arc furnace for the production of iron and raw steel. 
 “SunCoke” means SunCoke Energy, Inc., a
Delaware corporation. 
 “Sunoco” means Sunoco, Inc., a Delaware corporation, an Affiliate of Seller.

 “Sunoco Realized Value” has the meaning set forth in Section 3.2(b). 

  

APPENDIX A 
 PAGE 9 

 “Targeted Coke Production” means the Coke Tonnage in respect of the
applicable volatile matter content percentage set forth in the attached and incorporated Schedule 6.2(a) for the applicable Contract Year. 
 “Taxes” means any tax imposed by any Governmental Authority in the form of sales, use, excise, value added, environmental, gross receipts or franchise tax (except for property taxes
related to the Plant or taxes based on or measured by the net income or net worth of Seller), state and local product tax, state and local inspection fees, any taxes or assessments in respect of greenhouse gases (including carbon dioxide), or
similar taxes, assessments, or fees. If the purchase of any Coke by Purchaser is exempt from sales or use tax, then Purchaser shall furnish Seller with a valid exemption certificate in form and content reasonably acceptable to Seller. In the event
any exemption is subsequently denied by any Governmental Authority, and as a result Seller is assessed for such sales or use tax, then Purchaser shall reimburse Seller for such Taxes including all interest and penalties associated therewith.

 “Term” has the meaning set forth in Section 2.1. 

“Third Party Investor(s)” has the meaning set forth in Section 3.2(c). 

“Third Party Supplied Coke” means screened coke, which is nominally sized between *****, and which is obtained from
sources other than Seller, including Seller’s Affiliates. 
 “Ton” or “Tonnage” means a
“short” ton of two thousand (2,000) pounds of Coal or Coke, as the case may be. 
 “Week” or
“Weekly” refers to a calendar week beginning at 12:00 midnight on the Sunday and ending at 11:59 p.m. on the Saturday of the same week, and transpiring in whole or in part during the Term. 

“Weighted Average” means an average that takes into account the proportional relevance of, as applicable, the moisture
content or cost of each Coal comprising each particular Coal Blend, rather than treating each such component equally. 

“Work” has the meaning set forth in Section 1.4(a). 

“Written” or “in Writing” means any form of written communication or a communication by means of
e-mail, telex, telecopier device, telegraph or cable, overnight courier, or registered or certified mail (postage prepaid and return receipt requested), and shall be deemed to have been duly given or made upon receipt, or in the case of any
electronic transmission, when confirmation of receipt is obtained. 

  

APPENDIX A 
 PAGE 10 

 Schedule 1.5 
 Guarantee of Seller’s Obligations 
 GUARANTY 

THIS GUARANTY, dated as of [Insert] (“Guaranty”), is made by SunCoke Energy, Inc., a Delaware corporation and Sun
Coal & Coke Company, a Delaware corporation (collectively, “Guarantors”), for the benefit of AK Steel Corporation, a Delaware corporation (“AK”). 
 Recitals 
 A. This Guaranty is made pursuant to the Amended and
Restated Coke Purchase Agreement entered into on the date hereof by and between AK and Middletown Coke Company, Inc., a Delaware Corporation (“Seller”) (“Coke Purchase Agreement”). 

B. This Guaranty is made for the benefit of AK to guarantee the performance by Seller of its obligations under the Coke Purchase
Agreement (the obligations referred to herein are collectively the “Guaranteed Obligations”). 
 C. It is a condition
to AK entering into the Coke Purchase Agreement that Guarantors shall have executed and delivered this Guaranty. 
 D.
Guarantors will obtain benefits from Seller entering into the Coke Purchase Agreement and, accordingly, desire to execute this Guaranty in order to satisfy the conditions described in the preceding paragraph and to induce AK to enter into the Coke
Purchase Agreement. 
 Agreements 
 NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to Guarantors, the receipt and sufficiency of which are hereby acknowledged, Guarantors hereby make the following
representations and warranties to AK and hereby covenant to AK as follows: 
 1. Guarantors guarantee to AK the full performance
of all Guaranteed Obligations. Guarantors understand, agree and confirm that AK may enforce this Guaranty against Guarantors without first proceeding against Seller. 
 2. The liability of Guarantors hereunder shall not be affected or impaired by (a) any other continuing or other guaranty, undertaking or maximum liability of Guarantors or of any other person as to
the obligations and performance of Seller; (b) any reduction of any such other guaranty or undertaking; (c) any dissolution, termination or increase, decrease or change in personnel by Seller; (d) any payment made to AK in respect of
the Guaranteed Obligations which AK repays to Seller pursuant to court order in any bankruptcy, reorganization, arrangement, moratorium or other debtor relief proceeding, and Guarantors waive any right to the deferral or modification of their
obligations hereunder by reason of any such proceeding; (e) any assignment by Seller of any of its rights under the Coke Purchase Agreement; or (f) the sale, transfer or other disposition by Guarantors of any or all of the share capital of
Seller; provided, notwithstanding any other provision in this Guaranty, no action shall commence against 

  

SCHEDULE 1.5 
 PAGE 1 

 
Guarantors unless and until written notice of default is first made upon Seller and Guarantors pursuant to the requirements set forth in the Coke Purchase Agreement and Seller or Guarantors fail
to cure such default within the applicable cure period set forth in the Coke Purchase Agreement. 
 3. Other than the notice
required to be given to Guarantors as specified in Section 2 of this Guaranty, Guarantors hereby waive notice of acceptance of this Guaranty and notice of any liability to which it may apply, and waive promptness, diligence, presentment, demand
of payment, protest, notice of dishonor or nonpayment of any such liabilities, suit or taking of other action by AK against Guarantors. 
 4. AK may at any time and from time to time without the consent of or notice to Guarantors, without incurring responsibility to Guarantors, without impairing or releasing the obligations of Guarantors
hereunder upon or without any terms or conditions and in whole or in part: 
 (a) exercise or refrain from
exercising any rights against Seller or otherwise act or refrain from acting; 
 (b) settle or compromise any of
the Guaranteed Obligations or any liability (including any of those hereunder) incurred directly or indirectly in respect thereof or hereof; and/or 
 (c) consent to or waive any breach of, or any act, omission or default under, the Coke Purchase Agreement, or otherwise amend, modify or supplement the Coke Purchase Agreement. 

5. No invalidity, irregularity or unenforceability of all or any part of the Guaranteed Obligations shall affect, impair or be a defense
to this Guaranty, and this Guaranty shall be primary, absolute and unconditional notwithstanding the occurrence of any event or the existence of any other circumstances which might constitute a legal or equitable discharge of a surety or guarantor
except payment in full of the Guaranteed Obligations. 
 6. This Guaranty is a continuing one and all liabilities to which it
applies or may apply under the terms hereof shall be conclusively presumed to have been created in reliance hereon. No failure or delay on the part of AK in exercising any right, power or privilege hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein expressly specified are cumulative
and not exclusive of any rights or remedies which AK would otherwise have. Other than the notice required to be given to Guarantors as specified in Section 2 of this Guaranty, no notice to or demand on Guarantors in any case shall entitle
Guarantors to any other further notice or demand in similar or other circumstances or constitute a waiver of the rights of AK to any other or further action in any circumstances without notice or demand. It is not necessary for AK to inquire into
the capacity or powers of Seller or the officers, directors, or agents acting or purporting to act on its behalf, and any indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed hereunder. 

  

SCHEDULE 1.5 
 PAGE 2 

 7. Guarantors waive, to the maximum extent permitted by applicable law, any right to require
AK to (a) proceed against Seller or (as applicable) any other person; or (b) pursue any other of its remedies. 
 8.
Guarantors assume all responsibility for being and keeping themselves informed of Seller’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment or nonperformance of the Guaranteed Obligations and
the nature, scope and extent of the risks which Guarantors assume and incur hereunder, and agree that AK shall have no duty to advise Guarantors of information known to them regarding such circumstances or risks. 

9. If and to the extent that Guarantors make any payment or performance to AK pursuant to or in respect of this Guaranty, then any claim
which Guarantors may have against Seller by reason thereof shall be subject and subordinate to the prior payment and performance in full of the Guaranteed Obligations to AK. 
 10. Guarantors hereby agree to pay all reasonable out-of-pocket costs and expenses of AK (including, without limitation, the reasonable fees and disbursements of counsel employed by AK) in connection with
the enforcement of this Guaranty and any amendment, waiver or consent relating hereto against Guarantors. 
 11. This Guaranty
shall be binding upon Guarantors and their successors and assigns, and shall inure to the benefit of AK and its successors and assigns. 
 12. Neither this Guaranty nor any provision hereof may be changed, waived, discharged or terminated except with the written consent of AK and Guarantors. 

13. Guarantors acknowledge that an executed (or conformed) copy of the Coke Purchase Agreement has been made available to their principal
executive officers and such officers are familiar with the contents thereof. 
 14. All notices requests, demands or other
communications pursuant hereto shall be made in writing (including telegraphic, telex, facsimile transmission or cable communication) and mailed, telegraphed, telexed, transmitted, cabled or delivered to the following addresses (or to such other
addresses s designated by Guarantors or AK): 
  

			
	If to Guarantors:	  	SunCoke Energy, Inc.
		  	Parkside Plaza
		  	11400 Parkside Drive
		  	Knoxville, TN, 37934
		  	Attention: Vice President and General Counsel
		  	Fax: (865) 288-5280
		  	Confirm: (865) 258-5213

  

SCHEDULE 1.5 
 PAGE 3 

			
	If to AK:	  	AK Steel Corporation
		  	9227 Centre Pointe Drive
		  	West Chester, OH 45069
		  	Attention:
		  	General Counsel
		  	Fax: (513) 425 -5607
		  	Confirm: (513) 425-2690

 All such notices and communication shall be mailed, telegraphed, telexed, facsimile transmitted, or cabled or sent by
overnight courier, and shall be effective when received. 
 15. This Guaranty and the rights and obligations of AK and of
Guarantors shall be governed by and construed in accordance with the law of the State of Ohio. 
 16. This Guaranty may be
executed in one or more counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. 

  

SCHEDULE 1.5 
 PAGE 4 

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

			
	SunCoke Energy, Inc.
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	
	Sun Coal & Coke Company
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

SCHEDULE 1.5 
 PAGE 5 

 Schedule 1.6 
 Guarantee of Purchaser’s Obligations 
 GUARANTY 

THIS GUARANTY, dated as of [insert] (“Guaranty”), is made by AK Steel Holding Corporation, a Delaware corporation
(“Guarantor”), for the benefit of Middletown Coke Company, Inc., a Delaware corporation (“Seller”). 

Recitals 
 A. This Guaranty is made pursuant to the Amended and Restated Coke Purchase Agreement dated as of September 1, 2009 by and between Seller and AK Steel Corporation, a Delaware corporation
(“AKS”) (“Coke Purchase Agreement”). 
 B. This Guaranty is made for the benefit of Seller to guarantee the
performance by AKS of its obligations under the Coke Purchase Agreement (the obligations referred to herein are collectively the “Guaranteed Obligations”). 
 C. It is a condition of Seller entering into the Coke Purchase Agreement that Guarantor shall have executed and delivered this Guaranty upon the occurrence of the events set forth in Section 1.6 or
as otherwise set forth in Section 1.7 of the Coke Purchase Agreement. 
 D. Guarantor will obtain benefits from AKS
entering into the Coke Purchase Agreement and, accordingly, desires to execute this Guaranty in order to satisfy the conditions described in the preceding paragraph and to induce Seller to enter into the Coke Purchase Agreement. 

Agreements 
 NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to Guarantor, the receipt and sufficiency of which are hereby acknowledged, Guarantor hereby makes the following
representations and warranties to Seller and hereby covenants to Seller as follows: 
 1. Guarantor guarantees to Seller the
full performance of all Guaranteed Obligations. Guarantor understands, agrees and confirms that Seller may enforce this Guaranty against Guarantors without first proceeding against AKS. 

2. The liability of Guarantor hereunder shall not be affected or impaired by (a) any other continuing or other guaranty, undertaking
or maximum liability of Guarantor or of any other person as to the obligations and performance of AKS; (b) any reduction of any such other guaranty or undertaking; (c) any dissolution, termination or increase, decrease or change in
personnel by AKS; (d) any payment made to Seller in respect of the Guaranteed Obligations which Seller repays to AKS pursuant to court order in any bankruptcy, reorganization, arrangement, moratorium or other debtor relief proceeding, and
Guarantor waives any right to the deferral or modification of their obligations hereunder by reason of any such proceeding; (e) any assignment by AKS of any of its rights under the Coke Purchase Agreement; or (f) the sale,

  

SCHEDULE 1.6 
 PAGE 1 

 
transfer or other disposition by Guarantor of any or all of the share capital of AKS; provided, notwithstanding any other provision in this Guaranty, no action shall commence against Guarantor
unless and until written notice of default is first made upon AKS and Guarantor pursuant to the requirements set forth in the Coke Purchase Agreement and AKS or Guarantor fails to cure such default within the applicable cure period set forth in the
Coke Purchase Agreement. 
 3. Other than the notice required to be given to Guarantor as specified in Section 2 of this
Guaranty, Guarantor hereby waives notice of acceptance of this Guaranty and notice of any liability to which it may apply, and waives promptness, diligence, presentment, demand of payment, protest, notice of dishonor or nonpayment of any such
liabilities, suit or taking of other action by Seller against Guarantor. 
 4. Seller may at any time and from time to time
without the consent of or notice to Guarantor, without incurring responsibility to Guarantor, without impairing or releasing the obligations of Guarantor hereunder upon or without any terms or conditions and in whole or in part: 

(a) exercise or refrain from exercising any rights against AKS or otherwise act or refrain from acting; 

(b) settle or compromise any of the Guaranteed Obligations or any liability (including any of those hereunder) incurred
directly or indirectly in respect thereof or hereof; and/or 
 (c) consent to or waive any breach of, or any act,
omission or default under, the Coke Purchase Agreement, or otherwise amend, modify or supplement the Coke Purchase Agreement. 

5. No invalidity, irregularity or unenforceability of all or any part of the Guaranteed Obligations shall affect, impair or be a defense
to this Guaranty, and this Guaranty shall be primary, absolute and unconditional notwithstanding the occurrence of any event or the existence of any other circumstances which might constitute a legal or equitable discharge of a surety or guarantor
except payment in full of the Guaranteed Obligations. 
 6. This Guaranty is a continuing one and all liabilities to which it
applies or may apply under the terms hereof shall be conclusively presumed to have been created in reliance hereon. No failure or delay on the part of Seller in exercising any right, power or privilege hereunder shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein expressly specified are
cumulative and not exclusive of any rights or remedies which Seller would otherwise have. Other than the notice required to be given to Guarantor as specified in Section 2 of this Guaranty, no notice to or demand on Guarantor in any case shall
entitle Guarantor to any other further notice or demand in similar or other circumstances or constitute a waiver of the rights of Seller to any other or further action in any circumstances without notice or demand. It is not necessary for Seller to
inquire into the capacity or powers of AKS or the officers, directors, or agents acting or 

  

SCHEDULE 1.6 
 PAGE 2 

 
purporting to act on its behalf, and any indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed hereunder. 

7. Guarantor waives, to the maximum extent permitted by applicable law, any right to require Seller to (a) proceed against AKS or
(as applicable) any other person; or (b) pursue any other of its remedies. 
 8. Guarantor assumes all responsibility for
being and keeping itself informed of AKS’ financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment or nonperformance of the Guaranteed Obligations and the nature, scope and extent of the risks which
Guarantor assumes and incurs hereunder, and agrees that Seller shall have no duty to advise Guarantor of information known to it regarding such circumstances or risks. 
 9. If and to the extent that Guarantor makes any payment or performance to Seller pursuant to or in respect of this Guaranty, then any claim which Guarantor may have against AKS by reason thereof shall be
subject and subordinate to the prior payment and performance in full of the Guaranteed Obligations to Seller. 
 10. Guarantor
hereby agrees to pay all reasonable out-of-pocket costs and expenses of Seller (including, without limitation, the reasonable fees and disbursements of counsel employed by Seller) in connection with the enforcement of this Guaranty and any
amendment, waiver or consent relating hereto against Guarantor. 
 11. This Guaranty shall be binding upon Guarantor and its
successors and assigns, and shall inure to the benefit of Seller and its successors and assigns. 
 12. Neither this Guaranty
nor any provision hereof may be changed, waived, discharged or terminated except with the written consent of Seller and Guarantor. 
 13. Guarantor acknowledges that an executed (or conformed) copy of the Coke Purchase Agreement has been made available to its principal executive officers and such officers are familiar with the contents
thereof. 
 14. All notices requests, demands or other communications pursuant hereto shall be made in writing (including
telegraphic, telex, facsimile transmission or cable communication) and mailed, telegraphed, telexed, transmitted, cabled or delivered to the following addresses (or to such other addresses as designated by Guarantor or Seller): 

 

			
	If to Guarantor:	    	AK Steel Holding Corporation
		    	9227 Centre Pointe Drive
		    	West Chester, OH 45069
		    	Attention:
		    	General Counsel
		    	Fax: (513) 425-5607
		    	Confirm: (513) 425-2690

  

SCHEDULE 1.6 
 PAGE 3 

			
	If to Seller:	    	Middletown Coke Company, Inc.
		    	c/o SunCoke Energy, Inc.
		    	Parkside Plaza
		    	11400 Parkside Drive
		    	Knoxville, TN, 37934
		    	Attention: Vice President and General Counsel
		    	FAX: (865) 288-5280
		    	Confirm: (865) 258-5213

 All such notices and communication shall be mailed, telegraphed, telexed, facsimile transmitted, or cabled or sent by
overnight courier, and shall be effective when received. 
 15. This Guaranty and the rights and obligations of Seller and of
Guarantor shall be governed by and construed in accordance with the law of the State of Ohio. 
 16. This Guaranty may be
executed in one or more counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. 

  

SCHEDULE 1.6 
 PAGE 4 

 IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be executed and delivered as of
the date first above written. 
  

			
	AK Steel Holding Corporation
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

  

SCHEDULE 1.6 
 PAGE 5 

 Schedule 5.1 
 Screened Coke Quality Standards 
  

											
	 Categories
	  	Target	 	Threshold
Frequency	 	Threshold 
for
Quality
Adjustment	 	Contract 
Price
Adjustment
(Pro-Rata)	 	Reject
Standard
(Daily)
	 Ash (Dry basis)
	  	*****%*****%*****%*****%*****	 	*****	 	*****%	 	*****%*****	 	*****%
	 Volatile Matter (Dry Basis)
	  	*****%	 	*****	 	*****%	 	*****%*****	 	*****%
	 Total Sulfur (Dry Basis)
	  	*****%*****	 	*****	 	*****%	 	*****%*****	 	*****%
	 Stability
	  	*****	 	*****	 	*****	 	*****	 	*****
	 Total Moisture
	  	*****%	 	*****	 	*****%*****%	 	*****%*****	 	*****%

 These quality standards and price adjustments are for use on Screened Coke with a minimum bottom coke size of
*****”. 
 Ash and Total Sulfur Daily Standards – Each of the daily Screened Coke quality standards (Target, Quality Threshold
and Reject Standard) for ash and sulfur will be established based upon the test results of the daily sample(s) of the corresponding coal charged to the ovens. The daily Coke ash standard will be derived from the ash content of the coal charged,
adjusted for the expected coke yield formula (*****% minus the volatile matter content of the coal charged minus the expected *****% burn loss). By way of example, if the daily coal sample(s) result in an average ash content of *****% and an average
volatile matter content of *****%, then the daily standards for ash are: (Target = *****%, Quality Threshold = *****% and Reject Standard = *****%). The daily sulfur standards will be derived from the sulfur content of the coal charged, adjusted for
the expected coke retention factor of *****. By way of example, if the daily coal sample(s) result in an average sulfur content of 1.00%, then the daily standards for sulfur are: (Target = *****%, Quality Threshold = *****% and Reject Standard =
*****%). 
 Stability Penalty and Credit – For each ***** point variation in respect of Coke Tonnage that contains less than *****
Stability, the Coke Price will be decreased by $***** for such Coke Tonnage. For each one (1) point variation in respect of Coke Tonnage that contains more than ***** Stability, the Coke Price will be increased by $***** for such Coke Tonnage.
For Coke that measures between ***** stability and ***** stability, there shall be no adjustment to the Coke Price. 

  

SCHEDULE 5.1 
 PAGE 1 

 Moisture Penalty and Premium – For each *****% variation in moisture over *****%, the Coke Price
will be decreased $***** per ton for such coke tonnage. For each *****% variation in moisture under *****%, the Coke Price will be increased $***** per ton. 
 For coke that measures moisture between *****% and *****%, there shall be no adjustments to the Coke Price. For any day that Coke is rejected due to moisture content greater than the Reject Standard, such
tonnage will be excluded from the weekly average moisture calculation for quality adjustments. 
 Pro-Rata
Adjustments: 
 For ash, volatile matter, sulfur and moisture, any percentage over the threshold amount shall be pro-rated for
***** percentage point increment exceedance. By way of example, a volatile matter percentage of *****% will result in a Coke Price decrease of $*****. 
 Testing Frequency: 
 Moisture, sulfur, ash, volatile matter and
stability will be tested and analyzed on a daily basis. Results for moisture shall be arithmetically averaged on a weekly basis for Coke Price adjustments. For sulfur, ash, volatile matter and stability, if multiple samples are taken for a single
day, the results thereof shall be arithmetically averaged for that day for Coke Price adjustments. 

  

SCHEDULE 5.1 
 PAGE 2 

 Schedule 6.2(a) 

Coke Supply and Purchase Obligation 
  

			
	 Volative Matter
Content of Coal
Blend

(%)
	  	 Purchaser
Targeted Coke
Production

(Tons per 
Year)1

	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****
	 *****
	  	*****

  

	1 	 Purchaser Targeted Coke Production amounts in this Schedule 6.2(a) are subject to downward adjustment pursuant to Section 6.7.

  

SCHEDULE 6.2(a) 
 PAGE 1 

 Schedule 7.2 
 Government Mandated Additional Capital Expenditures (Example) 
  

					
		
	 Commencement of first Contract Year:
	  	 	01/01/11	  
		
	 End of Term:
	  	 	12/31/30	  
		
	 Completion Date for Government Mandated Additional Capital Expenditures:
	  	 	4/30/24	  
		
	 Number of partial or complete Contract Years Remaining in the Term:
	  	 	6.67	  
		
	 Amortization Period (greater of ***** years or the remainder of the Term):
	  	 	*****	  
		
	 Interest Rate (pre-tax):
	  	 	*****%	  
		
	 Cost of Applicable Government Mandated
	  			
		
	 Additional Capital Expenditure:
	  	 	$*****	  
		
	 Monthly Amortized Cost:
	  	 	$*****	  
		
	 Unamortized Balance at End of Initial Term
	  	 	$*****	  

  

SCHEDULE 7.2 
 PAGE 1 

 Schedule A-1 
 Lost Energy Charge 
 Lost Energy Charge (to be calculated monthly) = 

***** 
 Where: 

***** 

  

SCHEDULE A-1 
 PAGE 1License Agreement

 Exhibit 10.1 

 
 EXCLUSIVE LICENSE AGREEMENT 

BETWEEN 

CHILDREN’S MEDICAL CENTER CORPORATION 
 AND 
 InVivo Therapeutics Corporation 

 
  

 TABLE OF CONTENTS 
  

			
	Articles	  	Page
		
	
I.                        
Definitions
	  	
		
	
II.                      Grant
	  	
		
	 III.                     Due
Diligence
	  	
		
	 IV.                    Royalties and
Other Payments
	  	
		
	
V.                      Reports and
Records
	  	
		
	 VI.                    Patent
Prosecution
	  	
		
	
VII.                   Infringement
	  	
		
	 VIII.                  Uniform Indemnification
and Insurance Provisions
	  	
		
	 IX.                    Compliance
with Laws; Export Controls
	  	
		
	
X.                      Non-Use of
Names
	  	
		
	
XI.                    Assignment
	  	

  
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	 XII.                   Dispute Resolution
and Arbitration
	  	
		
	 XIII.                  Term and
Termination
	  	
		
	 XIV.                 Payments, Notices and Other
Communications
	  	
		
	 XV.                   General
Provisions
	  	

  
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 EXCLUSIVE LICENSE AGREEMENT 
 This Exclusive License Agreement (the “Agreement”) is made and entered into as of July 2, 2007 (the “Effective Date”) by and between CHILDREN’S MEDICAL CENTER CORPORATION, a charitable
corporation duly organized and existing under the laws of the Commonwealth of Massachusetts and having its principal office at 300 Longwood Avenue, Boston, Massachusetts, 02115, U.S.A. (hereinafter referred to as “CMCC”), and InVivo
Therapeutics Corporation, a business corporation organized and existing under the laws of the State of Delaware and having its principal office at 7 Fort Washington Place, Cambridge, MA (hereinafter referred to as “Licensee”). 

WHEREAS, CMCC and the Massachusetts Institute of Technology (hereinafter referred to as “MIT”) are the co-owners of certain Patent Rights (as that term
shall be defined hereafter) and have the right to grant exclusive licenses under the Patent Rights; 
 WHEREAS, CMCC and MIT have entered into an
Inter-Institutional Agreement dated June 1, 2006, under which MIT has authorized CMCC to assume the responsibility for the preparation, filing, prosecution, maintenance and defense of the Patent Rights and has appointed CMCC as its sole agent
for the licensing of MIT’s interests in the Patent Rights, subject, only to a royalty-free, nonexclusive license granted to the United States Government for those inventions and ensuing patents developed with U.S. Government funding, and
certain laws and regulations relating to Federally- funded projects and institutions, if applicable; 
 WHEREAS, in furtherance of its charitable and
research missions and those laws and regulations, CMCC and MIT (hereinafter referred to as “Institutions”) desire to have the Patent Rights utilized to promote the public interest and to further that goal are willing to grant an exclusive
license to Licensee on the terms and conditions described herein; 
 WHEREAS, Licensee plans to engage in the commercial development, production,
manufacture, marketing and sale of Licensed Products (as that term shall be defined hereafter) as described in this Agreement; and WHEREAS, Licensee desires to obtain an exclusive license, within a designated territory and for a prescribed field of
use, relating to certain licensed products and processes within the scope of the Patent Rights, subject to the terms and conditions of this Agreement. 

  
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 NOW, THEREFORE, in consideration of the promises and the mutual covenants contained herein, the parties hereto agree
as follows: 
 ARTICLE I. DEFINITIONS 
 For the
purpose of this Agreement, the following words and phrases shall have the meanings set forth below: 
  

	 	A.	“Affiliate” shall mean any company or other legal entity actually controlling, controlled by or under common control with Licensee. For purposes of the definition of
“Affiliate” the term “control” shall mean: (i) in the case of a corporate entity, the ability to effect the election of directors, or in the case of a for-profit entity direct or indirect ownership of at least a majority of
the stock or participating shares entitled to vote for the election of directors of that entity, in any case coupled with active managerial involvement and accountability for directing the business and affairs of that entity; (ii) in the case
of a partnership, the power customarily held by a managing partner to direct the management and policies of such partnership, provided that such power is actively exercised; or (iii) in the case of a joint venture, whether in corporate,
partnership or other legal form, a prevailing joint economic interest coupled with a managerial role entailing active direction, control and accountability with respect to the business and affairs of the entity. 

 

	 	B.	“Combination Product(s) or Process(es)” shall mean a product or process that includes a Licensed Product sold in combination with another component(s) whose
manufacture, use or sale by an unlicensed party would not constitute an infringement of the Patent Rights licensed in this Agreement. 

  

	 	C.	 “Confidential Information” shall mean with respect to a party (the “Receiving Party”), all information which is disclosed by the other party
(the “Disclosing Party”) to the Receiving Party hereunder or to any of its employees, consultants, Affiliates, licensees or sublicensees, except to the extent that the Receiving Party can demonstrate by written record or other suitable
physical evidence that such information, (a) as of the date of disclosure is demonstrably known to the Receiving Party or its Affiliates other than by virtue of a prior confidential disclosure to such Party or its Affiliates; (b) as of the
date of disclosure is in, or subsequently enters, the public domain, through no fault or omission of the Receiving Party; (c) is obtained from a Third Party having a lawful right to make such

  
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disclosure free from any obligation of confidentiality to the Disclosing Party; or (d) is independently developed by or for the Receiving Party without reference to or reliance upon any
Confidential Information of the Disclosing Party. 

  

	 	A.	“Control” or “Controlled” shall mean with respect to any Patent Rights or Licensed Process, the possession by a party of the power to grant a license or
sublicense of such Patent Rights, or Licensed Process as provided for herein without violating the terms of any arrangement or agreements between such party and any third party. 

 

	 	B.	“Distributor” shall mean a person or an entity unaffiliated with the Licensee to whom Licensee has granted an arms length sublicense under this Agreement to re-market,
re-distribute and/ or re-sell but not manufacture a Licensed Product. Distributors shall mean dealers, resellers, value added resellers, original equipment manufacturers and other similar purchasers and specifically excludes Manufacturers.

  

	 	C.	“Field of Use” shall mean treatment of Spinal cord injury (SCI). 

  

	 	D.	“First Commercial Sale” shall mean, with respect to each country: (i) the first sale of any Licensed Product by Licensee or any Sublicensee, following approval of
such Licensed Product’s marketing by the appropriate governmental agency, if any such approval is necessary, for the country in which the sale is to be made; or (ii) when governmental approval is not required, the first sale in that
country of the Licensed Product. 

  

	 	E.	“Improvements” shall mean any enhancement, invention or discovery created or identified during the Term of this Agreement (i) which CMCC owns or is Controlled by
CMCC; (ii) deriving from the activities of Dr. Yang Dong Teng or others in his laboratory at CMCC and (ii) that is directed to the subject matter of the claims of the Patent Rights. 

 

	 	F.	“Licensed Product” shall mean any product or part thereof in the Field of Use: 

 1. The manufacture, use or sale of which would, absent the license granted to Licensee hereunder, infringe any one of the issued, unexpired claim(s) or any one of the pending claim(s) (so long as such pending
claims have not been pending for longer than 7 years beginning from the initial examination date by the patent office of that country) contained in the Patent Rights in any country within the Territory. A claim of any issued, unexpired Patent Right
shall be presumed to be valid unless and until it has been held to be invalid 

  
 6 

 
by a final judgment of a court of competent jurisdiction from which no appeal can be or is taken; or 
  

	 	1.	The manufacture or use of which uses a “Licensed Process” as that term shall be defined hereafter. 

 

	 	A.	    “Licensed Process” shall mean any process that would infringe any one of the issued, valid, enforceable, unexpired claim(s) or any one of the
pending claim(s) contained in the Patent Rights in any country in the Territory, absent the license granted to Licensee hereunder. A claim of any issued, unexpired Patent Right shall be presumed to be valid unless and until it has been held to be
invalid by a final judgment of a court of competent jurisdiction from which no appeal can be or is taken. 

  

	 	B.	    “Licensee” shall mean Licensee, and successors and assignees permitted by this Agreement (including Affiliates where they are assignees
permitted by this Agreement). 

  

	 	C.	    “Manufacturer” shall mean a person or an entity unaffiliated with the Licensee to whom Licensee has granted an arms length sublicense under this
Agreement to develop, make/use and sell a Licensed Product. Manufacturer specifically excludes Distributors. 

  

	 	D.	    “Net Sales” shall mean the gross invoiced sales price for sales, leases, or other transfers of Licensed Products received by Licensee or its
Affiliates for any Licensed Products to a final customer who will be an end user of the Licensed Product and is not an Affiliate or Sublicensee, less (to the extent appropriately documented) the following amounts: 

 

	 	(a)	credits and allowances for price adjustment, rejection, or return of Licensed Products previously sold; 

 

	 	(b)	trade, rebates, quantity and cash discounts to purchasers allowed and taken; 

  

	 	(c)	amounts for third party transportation, insurance, handling, or shipping charges to purchasers; 

 

	 	(d)	 taxes, tariffs, duties and other governmental charges levied on or measured by the sale, transfer, transportation or delivery of Licensed Products (including any
tax such as a value added or similar tax or governmental charge), whether 

  
 7 

	 	
absorbed by Licensee or paid by the purchaser so long as Licensee’s price is reduced thereby, but not franchise or income taxes of any kind whatsoever; 

 

	 	(e)	when applicable, for any sale in which the United States government, on the basis of its royalty-free license pursuant to 35 USC Sec. 202(c) to any Patent Right, requires that
the gross sales price of any Licensed Product subject to such Patent Right, be reduced by the amount of such royalty owed Licensor, the amount of such royalty. 

 

	 	(f)	Net Sales also includes the fair market value of any non-cash consideration received by Licensee for the sale, lease, or transfer of Licensed Products. Transfer of a Licensed
Product within Licensee or between Licensee and an Affiliate for sale by the transferee shall not be considered a Net Sale for purposes of ascertaining royalty charges. In such circumstances, the gross sales price and resulting Net Sales price shall
be based upon the sale of the Licensed Product by the transferee. 

  

	 	A.	“Patent Rights” shall mean all of the following intellectual property which CMCC owns or has rights to during the Term of this Agreement as hereafter defined:

  

	 	1.	The United States and foreign patents and/or patent applications listed in Appendix 1 attached hereto and incorporated herein by reference and divisionals and continuations
thereof. 

  

	 	2.	The United States and foreign patents issued from the applications listed in Appendix 1A and 1B and from divisionals and continuations of those applications.

  

	 	1.	Claims of United States and foreign continuation-in-part applications, and of the resulting patents, which are directed to the subject matter specifically described in the United
States and foreign patent applications described in Appendix 1A and 1B 

  

	 	2.	Claims of all later filed foreign patent applications, and of the resulting patents, which are directed to the subject matter specifically described in the United States patent
and/or patent applications described in subparagraphs 1, 2 or 3 of this Section. 

  

	 	5.	Any reissues, divisions, amendments or extensions of the United States or foreign patents described in subparagraphs 1, 2, 3 or 4 of this Section. 

  
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	 	B.	“Sublicensee” shall mean a person or entity unaffiliated with Licensee to whom Licensee has granted an arm’s length sublicense under this Agreement. Sublicensee
includes Manufacturers and Distributors. 

  

	 	C.	“Territory” shall mean worldwide. 

  

	 	D.	“Term” shall have the meaning stated in paragraph A of Article XIII. 

  

	 	E.	“Know how” shall mean any unpatented manufacturing information, technical information, testing and analytic methods and specifications in the Field of Use which CMCC
owns or Controls and which relates to the Patent Rights. 

 ARTICLE II. GRANT 

A. Subject to the terms of this Agreement, CMCC on its own behalf and on behalf of MIT, hereby grants to Licensee: 

1. the worldwide right and sole exclusive license, including the right to grant sublicenses in accordance with this Article II,
under the Patent Rights to make, have made, use, lease, offer to lease, sell, offer to sell, have sold, import, have imported the Licensed Products, and to practice the Licensed Processes, in the Territory for the Field of Use to the end of the
Term, unless sooner terminated as provided in this Agreement; and 
 2. for the Term of this Agreement, the worldwide right and
non-exclusive license to use the Know how, in connection with Licensee’s research and development of Licensed Products and/or Licensed Processes; provided that such license shall not include the right to sublicense or transfer such Know how
except to contractors of Licensee for the purpose of developing, making or selling the Licensed Products, validating the materials or carrying out the Development Plan; and 
 3. subject to CMCC’s obligations under conflict of interest regulations or guidelines from the federal government or policies of Harvard Medical School (which regulations, guidelines and policies will be
provided to Licensee) and any other conflicting legal obligations, including contractual obligations to research sponsors which determination shall reasonably be made in CMCC’s sole discretion, a thirty (30) calendar day exclusive right of
first negotiation to Improvements and a non-exclusive right to Know how 

  
 9 

 
associated with such Improvements upon CMCC’s written notification to the Licensee that there are no such conflicting obligations. Within such 30-day period, Licensee shall provide a written
notice to CMCC indicating Licensee’s desire to license such Improvement, together with a written statement explaining development goals and it’s existing capacity to meet those development goals. Thereafter the parties shall negotiate in
good faith the terms, including but not limited to financial terms, for a new license within ninety (90) days of Licensee’s written notification. If the Licensee does not timely elect to license the Improvement through such written notice
or if the parties are unable to negotiate a new license within ninety (90) days of Licensee’s written notification to CMCC regarding Licensee’s desire to license the Improvement(s), CMCC shall be free to license such Improvements to a
third party. 
 B. Notwithstanding anything above to the contrary, Institutions shall retain a royalty-free, nonexclusive, right to
practice and use, and upon prior written notice to Licensee and furnishment to Licensee of the applicable sublicense to sublicense for a nominal fee (such as shipping and handling charges) to other academic nonprofit research organizations to
practice and/or use the Patent Rights and Licensed Processes, for research, educational and clinical purposes only. Any such sublicense shall specifically exclude and prohibit commercialization of the Patent Rights unless the sublicensee enters into
an agreement with Licensee on terms consistent with this Agreement but in other respects agreeable to Licensee in Licensee’s sole discretion The Institutions shall use reasonable efforts to enforce the provisions of the sublicense excluding
commercialization, through termination of such sublicense, or shall assign their right to enforce this provision to Licensee. 
 C.
Notwithstanding any other provision of this Agreement, if applicable, the license and any sublicense shall be subject to the rights of the United States government, if any, under Public Law 96-517, 97-226, and 98-620, codified at 35 U.S.C. sec.
200-212 and any regulations promulgated thereunder (the “Government Rights Laws”); the obligations of Institutions under applicable laws and regulations; and Licensee’s warranty to comply with all applicable laws and regulations.

 D. Licensee agrees that, if applicable and if mandated by the Government Rights Laws, Licensed Products leased or sold in the United
States shall be manufactured substantially in the United States unless a waiver has been obtained for such requirement as applicable. CMCC shall provide reasonable assistance to Licensee in Licensee’s efforts, at Licensee’s

  
 10 

 
election, to obtain such waiver. Upon the First Commercial Sale and thereafter, Licensee’s annual report to CMCC shall substantiate Licensee’s compliance with this provision. To support
exclusivity for Licensee consistent with this Agreement, CMCC hereby agrees that, except as provided in this Agreement, it shall not, without Licensee’s prior written consent, grant to any other party a license to make, have made, use, lease
and/or sell Licensed Products in the Field of Use, during the period of time in which this Agreement is in effect. 
 E. The license
granted hereunder shall not be construed to confer any rights upon Licensee by implication, estoppel or otherwise as to any inventions, discoveries, know-how, technology or other intellectual property not described in Paragraph A of this Article.

 F. Licensee hereby irrevocably covenants and agrees that it will not, directly or indirectly, in any respect, use non-public
information it has acquired in the course of prosecution of the Patent Rights from CMCC and/or patent counsel prosecuting the Patent Rights, or non- public information Licensee has provided, or recommendations made by Licensee that have been
implemented in whole or in part with respect to prosecution of the Patent Rights, to challenge the Patent Rights or CMCC’s ownership of such rights. In addition, Licensee agrees that it will treat such information as CMCC’s Confidential
Information and shall not disclose it to any third party without CMCC’s written permission. To the extent that a Sublicensee wishes to participate in the prosecution of Patent Rights under this Agreement, the Sublicensee shall seek CMCC’s
permission through a written notification. 
 G. Except for the restrictions specified herein, nothing in this Agreement shall be
construed to limit or constrain CMCC, or any officer, director, employee, member of its medical staff, or of any CMCC Affiliate, from continuing to engage in related research; or from the development of related or unrelated inventions, discoveries,
rights or technology, and from practicing, licensing or sublicensing related or unrelated intellectual property rights arising from inventions occurring after the Effective Date of this Agreement; or from academic publication related thereto; or
from entering into agreements and other relationships with other persons or organizations related to matters not directly and expressly within the scope of this Agreement; or from exercising any rights whatsoever with respect to the Know how.

 H. Licensee shall have the right to enter into sublicensing agreements with respect to any of the rights, privileges, and licenses
granted hereunder, subject to the terms and conditions hereof. CMCC agrees that, in the event CMCC terminates this Agreement for any reason provided hereafter, then CMCC shall provide to known Sublicensees, no less than thirty (30)

  
 11 

 
days prior to the effective date of said termination, written notice of said termination at the address specified by Licensee in the notice provided to CMCC under paragraph I of this Article. If
the Sublicensee, during that thirty (30) day period, provides to CMCC authorized and written notice that the Sublicensee: (i) reaffirms the terms and conditions of this Agreement as it relates to the rights the Sublicensee has been granted
under the sublicense; (ii) agrees to abide by all of the terms and conditions of this Agreement applicable to Sublicensees and to discharge directly all pertinent obligations of Licensee which Licensee is obligated hereunder to discharge (CMCC
agrees in good faith to negotiate with Sublicensee and Licensee and determine what are the “pertinent obligations of Licensee” are as such phrase is used in this subsection); and (iii) acknowledges that CMCC shall have no obligations
to the Sublicensee other than its pertinent obligations set forth in this Agreement with regard to Licensee, then, provided that the Sublicensee notice satisfies the foregoing, and Sublicensee is not in breach of its sublicense CMCC shall grant to
such Sublicensee license rights and terms equivalent to the sublicense rights and terms which the Licensee shall have previously granted to said Sublicensee, to the extent that those rights were granted by CMCC to the Licensee under this License
Agreement. In any event, the Sublicensee shall remain a Sublicensee under this Agreement for a period of at least sixty (60) days following notice by CMCC under this paragraph. 

I. In any event, Licensee agrees that any sublicense granted by it shall contain terms substantially similar to those in Articles II (Grant), VII
(Infringement), X (Compliance with Laws; Export Controls), XI (Non-Use of Names), XII (Assignment), and XIV (Term and Termination) of this Agreement and identical provisions to those in IX (Insurance and Indemnification) of this Agreement. Licensee
shall notify CMCC of a breach of any term of a sublicense that has not been cured within the applicable cure period. Licensee shall use commercially reasonable efforts to enforce the sublicense agreements and Licensee shall be fully liable to CMCC
for its failure to comply with this sentence. In addition, every sublicense shall contain within it requirements for commercially reasonable due diligence in developing or exploiting the Patent Rights, or selling Licensed Products, as specifically
applicable, shall obligate Licensee to enforce those provisions consistent with achieving Licensee’s obligations pursuant to this Agreement. Licensee agrees to provide to CMCC notice of any sublicense granted hereunder and to forward to CMCC a
copy of any and all fully executed sublicense agreements within thirty (30) days of execution. Commencing in 2008 and no later than March 1 of each calendar year, Licensee further agrees to forward to

  
 12 

 
CMCC a copy of any reports received by Licensee from its Sublicensees during the preceding calendar year as shall be pertinent to a royalty accounting under the applicable sublicense. 

J. Licensee shall advise CMCC in writing of any consideration received from Sublicensees, and, at CMCC’s request provide such information in
an electronic format using Microsoft Word or Excel. Licensee shall not accept from any Sublicensee anything of value in lieu of cash payments to discharge sublicensee’s payment obligations under any sublicense granted under this Agreement,
without the express written permission of CMCC, which permission shall not be unreasonably withheld but may take into account a reasonable valuation for purposes of Licensee’s payment obligations to CMCC. 

ARTICLE III. DUE DILIGENCE AND RELATED MATTERS 
  

	 	A.	Licensee, upon execution of this Agreement, shall use diligent efforts in good faith to bring one or more Licensed Products to market as soon as practicable, consistent with
sound and legal business practices and judgment, through a vigorous and diligent program for exploitation of the Patent Rights taking into account the competitiveness of the marketplace, the proprietary position of the Licensed Product, the relative
potential safety and efficacy of the Licensed Product, the cost of goods and availability of capacity to manufacture and supply the Licensed Product at commercial scale, the profitability of the applicable Licensed Product, and other relevant
factors including, without limitation, technical, legal, scientific or medical factors. Licensee shall use diligent efforts to obtain all necessary government approvals for the manufacture, use, sale and distribution of Licensed Products.
Thereafter, Licensee agrees that until expiration or termination of this Agreement, Licensee shall use commercially reasonable to continue active and diligent efforts to keep Licensed Products reasonably available to the public. In the event
Licensee decides not to exploit a licensed Patent Right, or Field of Use, in a given portion of the Territory, it shall promptly inform CMCC in writing and shall surrender to CMCC its license to that Patent Right or Field of Use in that Territory.

  

	 	B.	 The parties acknowledge that Licensee has provided to CMCC prior to the date of execution of this Agreement a written development plan (“Development
Plan”) setting forth for a period of five (5) years beginning the Effective Date, projections for the initial 

  
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indications and markets for Licensed Products and Licensed Processes for the subfield of SCI in the Field of Use, including (i) time-delimited targets for pre-clinical development, clinical
trials, regulatory approval, manufacturing and marketing that represent reasonable efforts, consistent with industry norms for similar technology and applications, to bring Licensed Products to the marketplace; and (ii) actual or projected
financial resources and/or strategic alliances that will be required to implement the Development Plan and (iii) identified project management structure calculated to meet the objectives and commitments in the Development Plan. The Development
Plan is attached hereto as Appendix 2 and is hereby incorporated herein by reference. In addition, prior to submission of the first regulatory filing relating to the first Licensed Product, but in any event no later than five years from the
Effective Date, Licensee shall submit a commercialization plan (“Commercialization Plan”) setting forth projected (i) time delimited commercialization milestones for bringing Licensed Products to the marketplace and
(ii) strategic alliances (including but not limited to alliances with Distributors) required to achieve the goals outlined in the Commercialization Plan. The Commercialization Plan shall be attached to this Agreement as Appendix 3.

  

	 	C.	Licensee shall use good faith and diligent efforts to accomplish the milestones set forth in the Development Plan and to manufacture and distribute Licensed Products.

  

	 	D.	Licensee shall be deemed to be using diligent efforts during the one (1) year period after the Effective Date if Licensee has raised and allocated for expenditure for
carrying out the Development Plan during the period commencing on September 26, 2006 and ending on the one (1) year anniversary date of the Effective Date a cumulative total of investment capital and/or research and development funds of at
least $1,000,000. In addition, the Licensee shall be deemed to be using diligent efforts during the three (3) year period after the Effective Date, if the Licensee has expended at least $6,000,000 reasonably allocated during that period to
implement the Development Plan. 

  

	 	E.	 From and after the Effective Date, Licensee shall have full control and authority over the development and commercialization of Licensed Products in the Field of
Use in the Territory, including without limitation, (a) all activities related to human clinical trials (including all clinical studies), (b) all activities relating to manufacture and supply of all Licensed Products (including all
required process development and scale up work with respect thereto), (c) all marketing, promotion, sales, distribution, import and export 

  
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activities relating to any Licensed Product, and (d) all activities relating to any regulatory filings, registrations, applications and regulatory approvals relating to any of the foregoing.
Licensee shall own all data, results and all other information arising from any such activities performed solely by Licensee under this Agreement, and all of the foregoing information, documentation and materials shall be considered Confidential
Information and technology solely owned by Licensee. 

  

	 	F.	Notwithstanding anything above to the contrary, CMCC shall not unreasonably withhold its consent to any revision of the objective(s) set forth in the Development Plan when
requested in writing in advance by Licensee and the request is supported by evidence reasonably acceptable to CMCC: (i) of technical difficulties or delays in the clinical studies or regulatory process that Licensee could not reasonably have
been avoided; (ii) Licensee is proposing and will implement satisfactory and effective means of addressing such difficulties or delays, including sufficient financial and technical resources; and (iii) that Licensee, its Affiliates and/or
sublicensees have in good faith made diligent efforts and expended adequate resources to meet said objective and will continue to do so. 

  

	 	G.	In the event Licensee fails to meet the objective(s) set forth in the Development Plan in a timely manner, CMCC shall notify Licensee thereof in writing, and Licensee shall have
sixty (60) days following such notification to establish to the reasonable satisfaction of CMCC that (i) it has met such objective(s); or (ii) a revision to the Development Plan is necessary and appropriate as contemplated above. In
the event Licensee fails to establish the same within the 60-day cure period, to CMCC’s reasonable satisfaction, CMCC shall have the right in its sole discretion to terminate in whole or in part the license granted to Licensee under this
Agreement effective immediately. 

  

	 	H.	 If, during the course of this Agreement, Licensee makes any discovery or invention that is not within the scope of the Patent Rights but would not have been made
but for the Patent Rights, Licensed Products or Licensed Processes licensed hereunder, Licensee shall, as a condition of this License, confidentially disclose such discovery or invention to CMCC, on usual and customary terms necessary to protect its
patentability or its confidentiality as a trade secret. Recognizing that CMCC enters into this Agreement in furtherance of its charitable academic research mission, Licensee shall enter into with CMCC a non-exclusive license or permit, as
applicable, including no more than a nominal fee, to practice such discovery or invention, whether or not patented, solely for 

  
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CMCC internal and academic research purposes. Any such license shall specifically exclude and prohibit commercialization of such discoveries or inventions. CMCC on its own behalf, grants Licensee
a thirty (30) calendar day exclusive right of first negotiation to license any rights resulting from such discoveries or inventions. 

ARTICLE IV. ROYALTIES AND OTHER PAYMENTS 
  

	 	A.	For the rights, privileges and exclusive license granted hereunder, Licensee shall pay to CMCC the following amounts in the manner hereinafter provided. Unless expressly stated
otherwise in this Agreement, periodic payment obligations listed below shall endure through the Term of this Agreement, unless this Agreement shall be sooner terminated as hereinafter provided: 

 

	 	14.	A license issue fee of $75,000 (subject to the adjustment provided herein), which license issue fee shall be deemed earned and due immediately upon the execution of this
Agreement. The parties acknowledge and agree that Licensee has paid to CMCC a total of $6,000 under the Option Agreement between CMCC and Licensee dated September 26, 2006 (the “Option Agreement”) and pursuant to the terms of the
Option Agreement such amount will be credited against this license issue fee. Accordingly, the license issue due upon the execution of this Agreement is $69,000. 

 

	 	15.	Payments for accrued and continuing patent prosecution costs as stated in Article VI hereof. 

 

	 	16.	Licensee shall make the following payments to CMCC upon the occurrence of the following events (“Milestones”) for the first Licensed Product in the Field of Use:

  

	 	(a)	$50,000 upon the filing with the United States Food and Drug Administration (“FDA”) of the first Investigational New Drug (“IND”) application, Investigational
Device Exemption (“IDE”) application, or comparable application; 

  

	 	(b)	$75,000 upon the enrollment of the first patient in Phase II testing; 

  

	 	(a)	$100,000 upon the enrollment of the first patient in Phase III testing; 

  
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	 	(b)	$250,000 upon filing with the FDA of the first New Drug Application (“NDA”), 510(k) application, Pre-Market Approval (“PMA”) application or PMA Supplement, or
BLA, or comparable application; 

  

	 	(c)	$500,000 upon approval by the FDA of the first NDA, 510(k), PMA or PMA Supplement, BLA, or comparable application within the United States with respect to any Licensed Product;

  

	 	(d)	$500,000 upon first marketing approval in any country outside of the United States; and 

 

	 	(e)	Running royalties in an amount equal to three percent (3%) of Net Sales of Licensed Products used, leased or sold by and/or for Licensee (including its Affiliates).

 17.     In each year prior to which the Licensed Product is released for sale, a License Maintenance
Fee of $10,000, which shall be payable on the first anniversary of the Effective Date and each subsequent anniversary thereafter. For the year in which the first Licensed Product is released for sale, the License Maintenance Fee due shall be
pro-rated so that Licensee shall owe to CMCC only the amount due up to the date of the First Commercial Sale of the first Licensed Product. In order for Licensee to be able to accurately determine such pro-rated amount owed, in the year Licensee
anticipates the First Commercial Sale of the first Licensed Product, Licensee can withhold the License Maintenance Fee until the end of that year at which time the Licensee will pay to CMCC either the pro-rated amount or the entire License
Maintenance Fee as applicable. 
 5. In the event Licensee has granted a Manufacturer a sublicense to manufacture and sell Licensed
Products under this Agreement, Licensee shall pay the following percentages of any and all payments received by Licensee from each said Manufacturer in consideration of permitting the Manufacturer to practice the Patent Rights, including but not
limited to the Manufacturer sublicense issue fees, any lump sum payments, milestone payments, technology transfer payments or other similar fees (“Manufacturer Sublicense Revenue”): 

a. 75% of all Manufacturer Sublicense Revenue excluding royalties if the Licensee sublicenses the Licensed Product to the said Manufacturer prior
to the Licensee 

  
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having raised and invested $500,000 or more in the development of Licensed Products. 
 b. 50% of all Manufacturer Sublicense Revenue excluding royalties if the Licensee Sublicenses the Licensed Product to the said Manufacturer at the time that the Licensee has raised and invested $500,000 or more but
less than $1,000,000 in the development of Licensed Products. 
 c. 25% of all Manufacturer Sublicense Revenue excluding royalties if the
Licensee Sublicenses the Licensed Product to the said Manufacturer at any time after the Licensee has raised and invested $1,000,000 or more in the development of Licensed Products. 

Notwithstanding the foregoing, Manufacturer Sublicense Revenue specifically excludes (i) equity investments at fair market value made by the
Manufacturer in the Licensee, (ii) payment by Manufacturer to the Licensee for payment or reimbursement of patent and/or other expenses, or (iii) payments by Manufacturer to the Licensee for research, development, and pre-clinical and
clinical studies undertaken by the Licensee on behalf of the Manufacturer or financing of research and development at the Licensee (including FTEs). 
 With respect to running royalties in connection with a Manufacturer’s sales of Licensed Products, Licensee shall pay to CMCC hereunder an amount equal to the royalty CMCC would have received from Licensee if
such sales had been made by Licensee to a final customer who will be an end user of the Licensed Product. 
 6. In the event Licensee has
granted a Distributor a sublicense to sell or resell Licensed Products, Licensee shall pay to CMCC twelve and one half percent (12.5%) of all payments received by the Licensee for the license by the Licensee to the Distributor to sell or resell
the Licensed Product excluding royalties in consideration of permitting the Distributor to sell or resell Licensed Products. With respect to running royalties in connection with Licensee’s sales of Licensed Products to a Distributor for the
purpose of sale and resale, Licensee shall pay to CMCC running Royalties in an amount equal to three percent (3%) of Net Sales of Licensed Products where the Distributor is considered the end user. 

  
 18 

	 	A.	Licensee shall not be required to pay to CMCC multiple royalties hereunder if any Licensed Product, its manufacture, use, lease or sale are or shall be covered by more than one
Patent Rights patent application or Patent Rights patent licensed under this Agreement. 

  

	 	B.	To the extent that Licensee is necessarily required to obtain, subsequent to the date of this Agreement, licenses to third party patents or other intellectual property that
dominates or is dominated by the Patent Rights in order to practice the Patent Rights or to produce or sell Licensed Products in a particular country and avoid infringing such third-party intellectual property, Licensee may deduct from the running
royalty due to CMCC for that country fifty percent (50%) of the royalties due on such third party patents or intellectual property up to an amount equal to fifty percent (50%) of royalties due hereunder, provided that such deduction
reflects a pro rata or other fair apportionment among Licensee and other royalty obligations of Licensee for required licenses and other intellectual property of Licensee, as documented by Licensee to CMCC’s reasonable satisfaction in royalty
reports to CMCC. 

  

	 	C.	For purposes of calculating royalties, in the event that a Licensed Product includes both component(s) covered by a claim of a Patent Right (“Patented Component”) and a
component which is therapeutically active alone or in a combination, and such component is not covered by a claim of a Patent Right (“Unpatented Component”), then Net Sales of the Combination Product or Combination Process shall be
calculated using one of the following methods: 

  

	 	1.	By multiplying the Net Sales of the Combination Product or Combination Process during the applicable royalty accounting period (“accounting period”) by a fraction, the
numerator of which is the aggregate gross selling price of the Patented Component(s) contained in the Combination Product or Combination Process if sold separately, and the denominator of which is the sum of the gross selling price of both the
Patented Component(s) and the Unpatented Component(s) contained in the Combination Product or Combination Process if sold separately; or 

  

	 	2.	 In the event that no such separate sales are made of the Patented Component(s) or the Unpatented Components during the applicable accounting period, Net Sales
for purposes of determining royalties payable hereunder shall 

  
 19 

	 	
be calculated by multiplying the Net Sales of the Combination Product or Combination Process by a fraction, the numerator of which is the fully allocated production cost of the Patented
Component(s) and the denominator of which is the sum of the fully allocated production costs of the Patented Component(s) and the Unpatented Component(s) contained in the Combination Product or Combination Process. Such fully allocated costs shall
be determined by using Licensee’s standard accounting procedures, which procedures must conform to standard cost accounting procedures. 

  

	 	D.	All payments, including royalty payments shall be paid in United States dollars in Boston, Massachusetts, or at such other place in the United States as CMCC may reasonably
designate consistent with the laws and regulations controlling in any foreign country. If the currency conversion shall be required in connection with the payments of royalties or other amounts hereunder, the conversion shall be made by using the
exchange rate prevailing as reported in The Wall Street Journal on the last business day of the calendar quarterly reporting period to which such royalty payments relate. 

 

	 	E.	Payment of royalties specified in this Article shall be made by Licensee to CMCC within forty-five (45) days after March 31, June 30, September 30
and December 31 each year during the Term of this Agreement covering the quantity of Licensed Products sold by Licensee during the preceding calendar quarter. The last such payment shall be made within forty-five (45) days after
termination of this Agreement. The royalty payments set forth in this Agreement shall, if overdue, bear interest until payment at a per annum rate of four percent (4%) above the prime rate in effect at Bank of America, Boston, on the due date,
provided that in no event shall said annual rate exceed the maximum interest rate permitted by law in regard to such payments. The payment of such interest shall not foreclose CMCC from exercising any other rights it may have as a consequence of the
lateness of any payment. 

 ARTICLE V. REPORTS, RECORDS AND RELATED MATTERS 

 

	 	A.	 Licensee shall keep, and shall require its Affiliates and use commercially reasonable efforts to require its Sublicensees to keep, full, true and accurate books
and records, including books of account in accordance with reasonable customary professional accounting practices in sufficient detail to enable CMCC to determine Licensee’s

  
 20 

	 	
compliance with this Agreement, including diligence with respect to development, and the royalty and other amounts payable to CMCC under this Agreement. Said books and records, including books of
account, shall be kept at Licensee’s principal place of business or the principal place of business of the appropriate division of Licensee to which this Agreement relates. Said books and the supporting data shall be retained for at least six
(6) years following the end of the calendar year to which they pertain. 

  

	 	B.	In the event of a suspected breach by the Licensee of its payment obligations hereunder or its obligations pertaining to sublicenses, CMCC shall send a letter to Licensee
indicating that it reasonably believes a breach may have occurred and indicating the breach and then Licensee shall have thirty (30) days form the date of its receipt of such letter to respond to such letter. If Licensee has not responded to
the letter in such 30- day period to CMCC’s satisfaction, then CMCC shall have the right to inspect, copy and audit, on fifteen (15) days prior written notice, at CMCC’s expense, the books described above from time to time to verify
the reports provided for herein or compliance in other respects with this Agreement. Any person(s) conducting such audit on behalf of CMCC shall be a Certified Public Accountant. In every case the accountant must have previously entered into a
confidentiality agreement reasonably satisfactory to Licensee to protect Licensee’s confidential information and limiting the disclosure and use of such information by such accountant to authorized representatives of the parties and the
purposes germane to this paragraph. License shall be a third party beneficiary of the confidentiality agreement between CMCC and the Certified Public Accountant. Such accountant shall perform such inspection, copying and auditing at CMCC’s
expense during Licensee’s regular business hours. Each party agrees to treat the results of any such accountant’s review of the other party’s records under this paragraph as Confidential Information of the other party hereunder.

  

	 	C.	 Until the later of First Commercial Sale of each Licensed Product or the last development milestone, Licensee shall provide to CMCC, at least annually,
reasonable detail regarding the activities of Licensee and Licensee’s Affiliates and Sublicensees relative to achieving the objectives set forth in the Development Plan in a timely manner, including but not limited to, reports of financial
expenditures to achieve said objectives; research and development activities; names, addresses and actions of all Sublicensees and affiliates; the progress of obtaining regulatory approvals, with appropriate documentation (including, without
limitation, applications, reports, and planning 

  
 21 

	 	
documents submitted to the Food and Drug Administration); strategic alliances and manufacturing, sublicensing and marketing efforts. Licensee shall also report more frequently, but no more than
quarterly, at CMCC’s written request. 

  

	 	D.	After First Commercial Sale, within forty-five days (45) after the end of each calendar quarter, Licensee shall deliver to CMCC, at Licensee’s expense, true and
accurate reports for the said preceding quarter, giving such particulars of the business conducted by Licensee, its Affiliates and its Sublicensees during the preceding three-month period under this Agreement as shall be pertinent to CMCC
determining compliance with this Agreement, including a royalty accounting hereunder and to verify Licensee’s activities with respect to achieving the objectives of the Development Plan described in Article III above. These reports shall, at
CMCC’s request, be provided by Licensee in an electronic format using Microsoft Word or Excel. Reports shall include at least the following: 

  

	 	1.	Number of Licensed Products manufactured and sold. 

  

	 	2.	Total Net Sales for Licensed Products sold, by country. 

  

	 	3.	Accounting for all Licensed Products sold. 

  

	 	4.	Applicable deductions. 

  

	 	5.	Total royalties payable to CMCC. 

  

	 	6.	Names and addresses of all Sublicensees. 

  

	 	7.	Payments received by Licensee from Affiliates and Sublicensees. 

  

	 	8.	When applicable, Licensed Products manufactured and sold to the U.S. Government, segregating those sold at a profit from those sold at cost in light of any royalty-free,
nonexclusive license that may heretofore have been granted to the U.S. Government. 

  

	 	9.	Royalties and Fees received from Sublicensees. 

  

	 	D.	 On the later of (i) on or before the ninetieth (90th) day following the close of Licensee’s fiscal year and (ii) that date that such statements are available, during
the period prior to which Licensee makes a royalty payment hereunder Licensee shall provide CMCC with Licensee’s financial statements for the preceding fiscal year, including without limitation

  
 22 

	 	
all statements reflecting profits and losses from operations, cash balances, and any management letter. Any information furnished under this paragraph shall be deemed Confidential Information of
Licensee. 

  

	 	F.	Licensee acknowledges that policies of INSTITUTIONS, Harvard Medical School and affiliated organizations, relating to, inter alia, conflicts of interest and intellectual
property, may affect certain direct and indirect arrangements between inventors and Licensee or related organizations. During the Term of this Agreement if Licensee knows that it, or any Affiliate of Licensee, or any officer or director of Licensee
acting on behalf of Licensee is intending on entering into any agreement other than this Agreement with or involving the inventor(s) of the Patent Rights, or their family, relatives or members or staff of their laboratories, whether relating to
sponsored research, consulting, board membership, securities, or otherwise, then License shall notify CMCC in writing at least 30 days before the date of such agreement. Licensee’s notice to CMCC shall include a detailed description of all
proposed terms and conditions. Licensee shall not knowingly enter into such an agreement if it would violate such policies unless the terms and conditions of the agreement have been duly approved by CMCC pursuant to such policies. Notwithstanding
the foregoing, the provisions of this Section (F) of Article V shall apply only to CMCC inventors and only while they are officially a member of the CMCC staff or an employee of CMCC. 

ARTICLE VI. PATENT PROSECUTION 
  

	 	A.	 CMCC shall apply for, seek prompt issuance in all relevant major market countries designated by Licensee of, and maintain during the term of this Agreement the
Patent Rights set forth in Appendix 1. CMCC reserves the sole right to make all final decisions with respect to the preparation, filing, prosecution and maintenance of such patent applications and patents. Although CMCC shall be the client in the
attorney-client relationship with patent counsel, Licensee shall have day-to-day responsibility for interaction with such patent counsel relating to prosecution of the Patent Rights, and may provide recommendations to such patent counsel regarding
the scope and content of patent applications to be filed and prosecuted to assure that the Patent Rights cover all items of commercial interest to Licensee. Licensee and CMCC each shall receive copies of all correspondence with respect to such
preparation, filing, prosecution and 

  
 23 

	 	
maintenance of the Patent Rights in sufficient time to review and provide comments and with file copies after the action is completed, and each shall receive a copy of invoices.

  

	 	B.	Licensee shall reimburse CMCC for all patent costs, past, present and future incurred by CMCC for the preparation, filing, prosecution and maintenance of patents underlying the
Patent Rights, provided that Licensee shall be notified prior to such costs exceeding $20,000. Past patent costs are the full amount of $2,265 for patents in Appendix 1B and capped at a maximum of no more than $20,000 for the patent applications in
Appendix 1 A. Licensee shall pay such costs for the patents and applications in Appendix 1A and Appendix 1B within thirty (30) days after receipt of an invoice covering such costs. Upon request of CMCC, and only upon such CMCC request, Licensee
agrees to have CMCC’s patent counsel directly bill Licensee and Licensee shall directly pay such invoices in compliance with such counsel’s customary business terms, but in any event not greater than thirty (30) days from receipt of
invoice which is not disputed in good faith. If Licensee elects to no longer pay the expenses of a patent application or patent included within Patent Rights, Licensed Products or Licensed Processes, Licensee shall notify CMCC not less than sixty
(60) days prior to such action and shall thereby surrender its rights under such patent or patent application. Such notice shall not relieve Licensee from responsibility to reimburse CMCC for patent-related expenses incurred prior to the
expiration of the (60)-day notice period (or such longer period specified in Licensee’s notice). CMCC shall then be free to license its rights to that patent or patent application to any other party on any other terms. 

 

	 	C.	In the event CMCC elects, in its sole discretion, not to pursue, maintain or retain a particular Patent Right licensed to Licensee hereunder, then CMCC shall so notify Licensee
and, subject to the rights of the United States government and any other contractual obligations to research sponsors when applicable, CMCC shall, provided that the Licensee is not in breach of this Agreement and hasn’t cured such breach during
any applicable cure period, authorize Licensee to assume the filing, prosecution and/or maintenance of such application or patent at Licensee’s expense. The parties agree in good faith to discuss and address any issues that resulted in
CMCC’s election not to pursue such Patent Rights. In such event, CMCC shall provide to Licensee reasonable assistance in the filing, prosecution and/or maintenance of such application or patent and any authorization necessary to permit Licensee
to pursue and/or maintain such Patent Right, on such economic and other terms as the parties shall mutually agree. 

  
 24 

	 	D.	The maintenance of Patent Rights in Appendix 1B are and shall remain under the administration of MIT. MIT shall directly submit invoices for payment to Licensee. Licensee shall
be responsible for a twenty five percent (25%) share of past costs and future patent costs going forward. In the event that the third party abandons their rights to the patents in Appendix 1 B, CMCC and MIT shall not be required to
subsidize the seventy five percent (75%) share of costs paid by the third party to maintain Licensee’s share of costs at twenty-five percent (25%). CMCC and Licensee shall negotiate a reasonable expansion in the Field of Use for any of
these Patent Rights which Licensee also agrees to pay some or all of the 75% share of patent costs. Licensee will then be notified to either pay the new share of costs going forward for the patents in Appendix 1B or give up those rights.

 ARTICLE VII. INFRINGEMENT 
  

	 	A.	Licensee and CMCC shall each inform the other promptly in writing and shall provide such other party with available evidence of any actual, alleged or threatened infringement by
a third party of the Patent Rights in the Field of Use within the scope of this Agreement and of any available evidence thereof. 

  

	 	B.	During the Term of this Agreement, CMCC shall have the first right, but shall not be obligated, to prosecute at its own expense any infringement of the Patent Rights and, in
furtherance of such right, Licensee hereby agrees that CMCC may include Licensee as a party plaintiff in any such suit, without expense to Licensee. Licensee shall have the right, at its own expense, to be represented in any such action by counsel
of Licensee’s own choice; provided, however, that under no circumstances shall the foregoing affect the right of CMCC to control the suit as described in the first sentence of this Section. The total cost of any such infringement action
commenced or defended solely by CMCC shall be borne by CMCC. Any recovery of damages, monetary awards or other amounts recovered, whether by judgment or settlement (collectively the “Recovery Amounts”), by CMCC for each such suit,
proceeding or other legal action taken under this paragraph shall be applied as specified in paragraph E of this Article VII. No settlement, consent judgment or other voluntary final disposition of the suit involving the Patent Rights may be entered
into without the consent of Licensee, which consent shall not be unreasonably withheld, delayed or conditioned. 

  
 25 

	 	C.	If within three (3) months after having been notified of any alleged infringement, CMCC shall have been unsuccessful in persuading the alleged infringer to desist and shall
not have brought and shall not be diligently prosecuting an infringement action, or if CMCC shall notify Licensee of its intention not to bring suit against any alleged infringer then, Licensee shall have the right, but shall not be obligated, to
prosecute at its own expense any infringement of the Patent Rights, provided, however, that such right to bring such an infringement action shall remain in effect only for so long as the license granted hereunder remains exclusive. No settlement,
consent judgment or other voluntary final disposition of the suit may be entered into without the consent of CMCC, which consent shall not be unreasonably withheld, delayed or conditioned. Licensee shall indemnify CMCC against any order for costs
that may be made against CMCC in such proceedings. 

  

	 	A.	In the event Licensee shall undertake the enforcement and/or defense of the Patent Rights by litigation pursuant to paragraph C of this Article, Licensee may withhold up to fifty
percent (50%) of the payments otherwise thereafter due to CMCC under Article IV above and apply the same toward reimbursement of up to fifty percent (50%) of Licensee’s expenses, including reasonable attorney’s fees, in
connection therewith. 

  

	 	B.	Any recovery of Recovery Amounts under paragraphs B or C of this Article shall be applied first in satisfaction of any un-reimbursed expenses and legal fees of CMCC and Licensee
incurred in prosecuting such enforcement action relating to such suit and next toward payment to CMCC for any payments under Article IV past due. The balance remaining from any such Recovery Amounts shall be for distribution purposes, treated as if
it were sublicensing revenue and divided accordingly between Licensee and CMCC with 75% to Licensee and 25% to CMCC. 

  

	 	F.	In the event that a declaratory judgment action alleging invalidity or infringement of any of the Patent Rights shall be brought against Licensee, CMCC, at its option, shall have
the right, within thirty (30) days after commencement of such action, to intervene and participate in the defense of the action at its own expense. 

  

	 	G.	 In any infringement suit which either party may institute to enforce the Patent Rights pursuant to this Agreement, the other party hereto shall cooperate in all
reasonable respects and , to the extent reasonably possible, have its employees testify when 

  
 26 

	 	
requested and make available relevant records, papers, information, samples, specimens, and the like. 

 

	 	H.	Licensee shall during the exclusive period of this Agreement have the sole right subject to the terms and conditions hereof to sublicense any alleged infringer for future use of
the Patent Rights to the extent licensed by this Agreement. Any upfront fees paid to Licensee as part of such a sublicense shall be subject to the payment obligations hereunder as if they were Sublicensing revenues under this Agreement.

 ARTICLE VIII: WARRANTY 
  

	A.	CMCC represents and warrants to Licensee that: 

  
 27 

 (i)        the execution and delivery of this Agreement and
the performance of the transactions contemplated hereby have been duly authorized by all appropriate CMCC corporate action; 

(ii)        this Agreement is a legal and valid obligation binding upon CMCC and enforceable in accordance
with its terms, and, to the best knowledge of CMCC’s Intellectual Property Office, the execution, delivery and performance of this Agreement by the parties does not conflict with any agreement, instrument or understanding to which CMCC is a
party or by which it is bound; 
 (iii)        CMCC has the full right, power and legal capacity
to enter into this Agreement and grant the rights granted to Licensee hereunder; 
 (iv)        To
the best knowledge of CMCC’s Intellectual Property Office, Patent Rights have been properly filed and prosecuted and CMCC and MIT are the sole owners of the Patent Rights; and 

(v)        To the best knowledge of CMCC’s Intellectual Property Office, CMCC is not aware of any
third party patent, patent application or other intellectual property rights that would be infringed by making, using, offering for sale, selling or importing Licensed Products. 

 

	B.	Licensee represents and warrants to CMCC that: 

(i)        the execution and delivery of this Agreement and the performance of the transactions
contemplated hereby have been duly authorized by all appropriate Licensee corporate action; and 

(ii)        this Agreement is a legal and valid obligation binding upon Licensee and enforceable in
accordance with its terms, and the execution, delivery and performance of this Agreement by the parties does not conflict with any agreement, instrument or understanding to which Licensee is a party of or by which it is bound. 

ARTICLE IX. UNIFORM INDEMNIFICATION AND INSURANCE 

PROVISIONS 

  
 28 

	 	A.	Licensee shall indemnify, defend and hold harmless CMCC, its corporate affiliates, current or future directors, trustees, officers, faculty, medical and professional staff,
employees, students and agents and their respective successors, heirs and assigns (the “Indemnitees”), against any claim, liability, cost, damage, deficiency, loss, expense or obligation of any kind or nature (including without limitation
reasonable attorneys’ fees and other costs and expenses of litigation) incurred by or imposed upon the Indemnitees or any one of them in connection with any third party claims, suits, actions, demands or judgments arising out of any theory of
product liability (including, but not limited to, actions in the form of tort, warranty, or strict liability) to the extent concerning any product, process or service made, used or sold pursuant to any right or license granted under this Agreement.

  

	 	B.	Licensee’s indemnification under Article VIII, Paragraph A above shall not apply to any liability, damage, loss or expense to the extent that it is directly attributable to
the negligent activities, reckless misconduct or intentional misconduct of the Indemnitees. 

  

	 	C.	Licensee agrees, at it’s own expense, to provide attorneys reasonably acceptable to CMCC to defend against any actions brought or filed against any party indemnified
hereunder with respect to the subject of indemnity contained herein, whether or not such actions are rightfully brought. 

  

	 	D.	 Beginning at the time as any such product, process or service is being commercially distributed or sold (other than for the purpose of obtaining regulatory
approvals) by Licensee or by a sublicensee, Affiliate or agent of Licensee, Licensee shall, at its sole cost and expense, procure and maintain commercial general liability insurance in amounts not less than $2,000,000 per incident and $2,000,000
annual aggregate and naming the Indemnitees as additional insureds. Such commercial general liability insurance shall provide (i) product liability coverage and (ii) contractual liability coverage for Licensee’s indemnification under
Article VIII, Paragraphs A through C of this Agreement. If Licensee elects to self-insure all or part of the limits described above (including deductibles or retentions which are in excess of $250,000 annual aggregate), such self-insurance program
must be acceptable to CMCC and the Risk Management Foundation of the Harvard Medical Institutions, Inc. The minimum amount of insurance coverage required under this Article VIII, Paragraph D, shall not be construed to create a

  
 29 

	 	
limit of Licensee’s liability with respect to its indemnification under Article VIll, Paragraphs A through C of this Agreement. 

 

	 	E.	Licensee shall provide CMCC with written evidence of such insurance upon request of CMCC. Licensee shall provide CMCC with written notice at least fifteen (15) days prior to
the cancellation, non-renewal or material change in such insurance. Notwithstanding any other term of this Agreement, if Licensee does not obtain replacement insurance providing comparable coverage within such fifteen (15) day period, CMCC
shall have the right to terminate this Agreement effective at the end of such fifteen (15) day period without notice of any additional waiting periods. 

 

	 	F.	Licensee shall maintain such commercial general liability insurance during (i) the period that any such product, process or service is being commercially distributed or sold
(other than for the purpose of obtaining regulatory approvals) by Licensee or by a sublicensee, Affiliate or agent of Licensee and (ii) a reasonable period after the period referred to above, which in no event shall be less than fifteen
(15) years. 

  

	 	G.	The provisions of this Article VIII shall survive expiration or termination of this Agreement. 

 

	 	H.	EXCEPT AS PROVIDED IN ARTICLE VIII NEITHER PARTY MAKES ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR ANY
EXPRESS OR IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, OR WARRANTY OF NON-INFRINGEMENT, WITH RESPECT TO ANY MATTER WITHIN THE SCOPE OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION ANY WARRANTY WITH RESPECT TO THE PATENT RIGHTS, LICENSED
PRODUCTS, OR ANY PATENT, TRADEMARK, SOFTWARE, TRADE SECRET, TANGIBLE RESEARCH PROPERTY, INFORMATION OR DATA LICENSED OR OTHERWISE PROVIDED TO THE OTHER PARTY HEREUNDER, AND HEREBY DISCLAIMS THE SAME. 

ARTICLE X. COMPLIANCE WITH LAWS; EXPORT CONTROLS 
 Licensee
shall comply with all applicable laws and regulations, including, without limitation, statutes and regulations affecting drug testing, development, marketing and distribution; laws 

  
 30 

 
and implementing regulations of the Department of Commerce governing intellectual property in federally-funded inventions when applicable; and Export Administration Regulations of the United
States Department of Commerce issued pursuant to the Export Administration Act of 1979 (50 App. U.S.C. §2401 et. seq.). Licensee understands and acknowledges that transfer of certain technical data, computer software, laboratory prototypes and
other commodities is subject to United States laws and regulations controlling their export, some of which prohibit or require a license for the export of certain types of technical data, to certain specified countries. CMCC neither represents that
a license shall not be required, nor that if required, it shall be issued. Licensee hereby agrees and gives written assurance that it will comply with all United States laws and regulations, and any applicable similar laws and regulations of any
other country, controlling the export of commodities and technical data, that it will be solely responsible for any violation of such by Licensee and/or its Affiliates and/or sublicensees, and that it will defend and hold CMCC, its affiliates and
their officers, directors, employees, agents, and medical staff harmless in the event of any legal action of any nature occasioned by such violation, and any action by any governmental agency or authority, or any other party, relating to any
asserted illegality or regulatory violation in the development, production, approval, marketing, sale, storage, manufacture, distribution, export or commercialization of Licensed Products. 
 ARTICLE XI. NON-USE OF NAMES 
 Licensee represents and agrees that it will not use the name, names, logos or
trademarks of the CMCC or any of its corporate affiliates, nor the name or photograph or other depiction of any employee or member of the staff of CMCC or such affiliates, nor any adaptation of any of the foregoing, in any advertising, promotional,
or sales literature without, in each case, prior written consent from CMCC and from the individual staff member, employee, or student if such individual’s name, photograph or depiction is used. Notwithstanding the above, Licensee may state that
the intellectual property rights underlying the Licensed Products are licensed from CMCC under one or more patents and/or applications consistent with this Agreement, and Licensee may comply with disclosure requirements of all applicable laws
relating to its business, including United States and state security laws. In addition, Licensee may refer to publications by employees, research staff or medical staff of CMCC in the scientific literature. Notwithstanding the foregoing, Licensee
shall be permitted to disclose the terms and conditions 

  
 31 

 
of this Agreement and CMCC and/or any of its affiliates involvement in connection therewith solely on a need-to-know basis and solely in conjunction with Licensee’s fund raising activities.

 ARTICLE XII. ASSIGNMENT 
 Except as specified
herein, neither party may assign this Agreement at any time without the prior consent of the other. Except as otherwise provided herein, this Agreement is not assignable or delegable, in whole or in part, by Licensee without the prior written
consent of CMCC acting through an authorized designee, and any purported assignment otherwise shall be void and of no effect. Notwithstanding the foregoing, upon prior written notice to Licensee CMCC may assign this Agreement in whole to an
Affiliate of CMCC. Notwithstanding the foregoing, in the event Licensee merges with another entity, is acquired by another entity, or sells all or substantially all of its assets to another entity, Licensee may assign its rights and obligations
hereunder to the surviving or acquiring entity if: (i) Licensee is not then in breach of this Agreement; (ii) the proposed assignee has a net worth at least equivalent to the net worth Licensee had as of the date of this Agreement;
(iii) the proposed assignee has or will have sufficient available resources, including liquid financial resources, management experience, and sufficient scientific, business and other expertise comparable or superior to Licensee, that will be
committed in order to satisfy its obligations hereunder; (iv) Licensee provides written notice of the assignment to CMCC, together with documentation reasonably satisfactory to CMCC sufficient to demonstrate the requirements set forth in
subparagraphs (i) through (iii) above, at least thirty (30) days prior to the effective date of the assignment; and (v) CMCC receives from the assignee, in writing, at least fifteen (15) days prior to the effective date of
the assignment: (a) reaffirmation of the terms of this Agreement; (b) an agreement to be bound by the terms of this Agreement; (c) an agreement to perform the obligations of Licensee under this Agreement, and (d) details
reasonably satisfactory to CMCC concerning subparagraphs (ii) and (iii) of this paragraph. Such consent to such assignment shall not be unreasonably withheld, delayed or conditioned by CMCC. 

ARTICLE XIII. DISPUTE RESOLUTION AND ARBITRATION 
  

	 	A.	 Any and all claims, disputes or controversies arising under, out of, or in connection with this Agreement, which have not been resolved by good faith
negotiations between the 

  
 32 

	 	
parties shall be resolved by final and binding arbitration in Boston, Massachusetts, in accordance with the rules then obtaining applicable to the appointment of a single arbitrator of the
American Health Lawyers Association, or in the event such arbitration is not then available under those rules, the rules of the American Arbitration Association (“AAA”). All expenses and costs of the arbitrators and the arbitration in
connection therewith will be shared equally, except that each party will bear the costs of its prosecution and defense, including without limitation attorneys fees and the production of witnesses and other evidence. Any award rendered in such
arbitration shall be final and may be enforced by either party. 

  

	 	B.	Notwithstanding the foregoing, nothing in this Agreement shall be construed to waive any rights or timely performance of any obligations existing under this Agreement, including
without limitation Licensee’s obligations to make royalty and other payments, and also, unless CMCC has terminated the License, Licensee’s obligation to continue due diligence and development obligations. Notwithstanding any other
provision of this Agreement, each party agrees that it shall not withhold or offset such payments, and agrees that, except as provided in Article XIV of this Agreement, each party’s sole remedy for alleged breaches by the other party is
pursuant to this Article XIII. 

 ARTICLE XIV. TERM AND TERMINATION 

 

	 	A.	The term of this Agreement shall be fifteen (15) years or the life of the last expiring Patent Right, whichever period is the longer term (the “Term”). Upon the
expiration of the Term of this Agreement, Licensee shall have a fully paid-up, irrevocable, freely transferable and sublicensable license in the Territory under the Patent Rights to develop, have developed, make, have made, use, have used, sell,
have sold, offer for sale, import and have imported any and all Licensed Products in the Territory. 

  

	 	B.	 Notwithstanding Article XIII of this Agreement, CMCC may terminate this Agreement immediately upon the bankruptcy, liquidation, dissolution or cessation of
operations of Licensee; or the filing of any voluntary petition for bankruptcy, dissolution, liquidation or winding-up of the affairs of Licensee; or any assignment by Licensee for the benefit of creditors; or the filing of any involuntary petition
for bankruptcy, dissolution, liquidation or winding-up of the affairs of Licensee which is not dismissed within ninety (90) days of the date on which it is filed or commenced. Upon any final judicial or administrative

  
 33 

	 	
determination that this Agreement violates, or if continued would violate, in a substantial manner, any provision of the Federal Internal Revenue Code, applicable rights of the United States or
obligations of CMCC under Title 15 of the United States Code, or other Federal or State laws applicable to CMCC, the parties agree to negotiate in good faith revising this Agreement as necessary so that the Agreement shall be valid and enforceable
to the extent permitted by applicable law. In such event the parties shall use their best efforts to replace the invalid or unenforceable provision by a provision that, to the extent permitted by applicable law, achieves the purposes intended under
the invalid or unenforceable provision. 

 C.        Either party may terminate this
Agreement as a result of a material breach by the other party of any material obligations or conditions hereunder, effective upon thirty (30) days after giving prior written notice to the breaching party of such termination in the case of a
payment breach and sixty (60) days after giving written notice to the breaching party of such termination in the case of any other breach and if such breach is not cured within such period. Notwithstanding Article XIII of this Agreement, upon
the expiration of the thirty (30) day period, if Licensee shall not have made all such payments to CMCC the rights, privileges and licenses granted hereunder shall terminate without further action by CMCC provided, however, that CMCC shall not
terminate this Agreement during the course of a good faith arbitration over the amount due, initiated within said thirty (30) day period, and pursued in accordance with Article XIII of this Agreement, if during the course of said arbitration,
within fifteen (15) days after written demand from CMCC, Licensee shall have timely paid the disputed amount into an escrow agent, with irrevocable instructions to dispose of the escrowed funds according to the final order resulting from the
arbitration or any judicial proceeding thereon. 
  

	 	D.	Licensee shall have the right to terminate this Agreement at any time upon three (3) months’ prior written notice to CMCC, upon payment by Licensee of all amounts due CMCC
through the effective date of termination. 

  

	 	E.	Upon termination of this Agreement for any reason, nothing herein shall be construed to release either party from any obligation that matured prior to the effective date of such
termination. 

  
 34 

	 	F.	If Licensee terminates this Agreement due to adverse results in clinical or other testing of Licensed Products or Licensed Processes, Licensee shall make available to CMCC, for
purposes of its evaluation of the future viability of the technology, a summary of such results together with copies of any government-mandated reports, such as FDA safety reports, made in connection with the decision to terminate development.

 ARTICLE XV. PAYMENTS, NOTICES, AND OTHER 
 COMMUNICATIONS 
 All notices, reports and/or other communications made in accordance with this
Agreement shall be sufficiently made or given if delivered by hand, delivered by facsimile (with mechanical confirmation of transmission), or sent by overnight receipted mail, postage prepaid, or by reasonable, customary and reliable commercial
overnight carrier in general usage, and addressed as follows: 
 In the case of CMCC: 

Chief Intellectual Property Officer 
 Intellectual Property Office 
 Children’s Hospital Boston 

300 Longwood Avenue 
 Boston, MA
02115 
 Payments shall be transmitted by reliable means to the same addressee, payable to Children’s Hospital Boston. 

In the case of Licensee: 
 Chief
Executive Officer 
 InVivo Therapeutics Corporation 
 7 Fort Washington Place 
 Cambridge, MA 02139 

With a copy to: 
 Frank Reynolds

 4116 Barberry Drive 

Lafayette Hill, PA 19444 

  
 35 

 or such other address as either party shall notify the other in writing. NOTICE SHALL BE EFFECTIVE
UPON RECEIPT. 
 ARTICLE XVI. GENERAL PROVISIONS 
  

	 	A.	All rights and remedies hereunder will be cumulative and not alternative. This Agreement shall be construed and governed by the laws of the Commonwealth of Massachusetts.

  

	 	B.	This Agreement may be amended only by written agreement signed by the parties. 

  

	 	C.	It is expressly agreed by the parties hereto that CMCC and Licensee are independent contractors and nothing in this Agreement is intended to create an employer relationship,
joint venture, or partnership between the parties. No party has the authority to bind the other. 

  

	 	D.	This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all proposals, representations, negotiations,
agreements and other communications between the parties, whether written or oral, with respect to the subject matter hereof. Where inconsistent with the terms of any contemporaneous related agreements (such as sponsored research agreements), terms
in this Agreement shall control. 

  

	 	E.	If any provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement
shall not be impaired thereby. 

  

	 	F.	This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against the party whose signature appears thereon, but all of which
taken together shall constitute but one and the same instrument. 

  

	 	G.	The failure of either party to assert a right to which it is entitled, or to insist upon compliance with any term or condition of this Agreement, shall not constitute a waiver of
that right or excuse a similar subsequent failure to perform any such term or condition by the other party. 

  
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	 	H.	Licensee agrees to mark any Licensed Products sold in the United States with all applicable United States patent numbers. All Licensed Products shipped to or sold in other
countries shall be marked in such a manner as to conform with the patent laws and practices of the country of manufacture or sale. 

  

	 	I.	Each party hereto agrees to execute, acknowledge and deliver such further instruments as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

  

	 	B.	The paragraph headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

  

	 	C.	The signatories below each warrant that he or she is duly authorized to execute this Agreement. 

 

	 	D.	CMCC and Licensee each recognize that the other party’s Confidential Information constitutes highly valuable and proprietary confidential information. CMCC and Licensee each
agree that it will keep confidential, and will cause its employees, consultants, Affiliates and sublicensees to keep confidential, all Confidential Information of the other party. Neither CMCC nor Licensee nor any of their respective employees,
consultants, Affiliates or sublicensees shall use Confidential Information of the other party for any purpose whatsoever other than exercising any rights granted to it or reserved by it hereunder. Without limiting the foregoing, each party may
disclose information to the extent such disclosure is reasonably necessary to (a) file and prosecute patent applications and/or maintain patents which are filed or prosecuted in accordance with the provisions of this Agreement, or
(b) file, prosecute or defend litigation in accordance with the provisions of this Agreement or (c) comply with applicable laws, regulations or court orders; provided, however, that if a party is required to make any such disclosure of the
other party’s Confidential Information in connection with any of the foregoing, it will give reasonable advance notice to the other party of such disclosure requirement and will use reasonable efforts to assist such other party in efforts to
secure confidential treatment of such information required to be disclosed. 

  
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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date last written below. 

 

					
	CHILDREN’S MEDICAL CENTER CORPORATION	 		  	INVIVO THERAPEUTICS CORPORATION
			
	 By:
 

	 		  	 By:
 

			
	Name: Brenda Manning	 		  	Name: Frank Reynolds
			
	Title: Director of Licensing	 		  	Title: President & CEO
			
	 Date: July 2, 2007
	 		  	 Date: 7/2/07

  
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 Appendix 1A: Patent Rights 
 US Provisional Application 60/794,986 based on CMCC cases 1455 and 1456 
 US Utility Application 11/789,538 

PCT Application PCT/US07/67403 

  
 39 

 Appendix 1B: Additional Patent Rights 
 US Patents and their parent CMCC and MIT cases 
  

							
	5514378	  	(CMCC 25, MIT 5573)	  	5759830	    	(CMCC 30, MIT 4279)
	5804178	  	(CMCC 23, MIT 4973)	  	5770417	    	(CMCC 30, MIT 4279)
	6095148	  	(CMCC 505, MIT 7138)	  	5770193	    	(CMCC 30, MIT 4279)
	6689608	  	(CMCC 389, MIT 6560)	  	6281015	    	(CMCC 415, MIT 6798)
	6309635	  	(CMCC 26, MIT 5729)	  	5654381	    	(MIT 6984)

 International Patents 

(based on US Patent 5759830) 
 Japan 2067741

 Canada 1340581 
 Netherlands 299010 

(based on US Patent 5804178) 
 Austria 422209

 Australia 636346 
 Belgium 42209 

Canada 2031532 
 Japan 3073766 

Switzerland 422209 
 Germany 69017820 

Spain 422209 
 France 422209 

United Kingdom 422209 
 Italy 422209 

Sweden 422209 
 Netherlands 422209 

European Patent Convention 422209 
 (based on US Patent
5770417) 
 Japan 2067741 
 Canada 1340581

 Netherlands 299010 
 Austria E139432 

Belgium 299010 
 European Patent Convention 0299010 

France 0299010 
 Germany P3751843 

Italy 0299010 
 Luxembourg 0299010 

Sweden 0299010 
 Switzerland 0299010 

United Kingdom 0299010 

  
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 (based on US Patent 6309635) 
 Japan 3524919 
 Austria 610423 
 Netherlands 610423 
 Belgium 610423 
 France 610423 
 Germany 69219613 
 Italy 610423 
 Luxembourg 610423 
 Sweden 610423 
 United Kingdom 610423 
 Canada 2121040 
 (based on US Patent 5770193) 
 Japan 2067741 
 Canada 1340581 
 Netherlands 299010 
 (based on US Patent 6281015) 

European Patent Convention 794790 
 Austria 794790 

Belgium 794790 
 Switzerland 794790 

Canada 794790 
 Denmark 794790 

Germany 794790 
 Spain 794790 

France 794790 
 United Kingdom 4794790 

Greece 794790 
 Italy 794790 

Ireland 794790 
 Sweden 794790 

Luxembourg 794790 
 Netherlands 794790 

Portugal 794790 
 (based on US Patent 6095148)

 Australia 720275 
 Canada 2236749 

Japan 9-517608 
 New Zealand 321886 

European Patent Convention 96937894.2 
 Korean 98-703320 

  
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 Appendix 2: Development Plan 
 6/20/07 
 Rudy Slovacek, PhD 
 Senior Licensing Officer 
 Children’s Hospital of Boston 
 300 Longwood Ave 
 Boston, MA 02115 
 Dear Rudy, 
 Our development plan for the patents we intend to license from CMCC is as Follows. 

We have five primary preclinical research projects for 2007: 
 1.
Limited Open Wound Research 
 2. Closed Wound with Stimulation-PPy 
 3. Maximized Stem Cell Utilization with Open Wound 
 4. Non-Human Primate studies will begin at the end of 2007.

 Our Future Research and Development plans will support our regulatory efforts to gain FDA approval for our device. Therefore the details of the 2008 and
beyond research will be determined through our meetings with the FDA in August 2007. 
 The outcomes of our studies will determine the next step in our
research and development plan. 
 Since we will be treating two conditions, the open wound and the closed wound associated with spinal cord injuries, we
have two separate regulatory plans to gain FDA approval. 
 We have all ready sent a detailed Opinion letter from Hogan & Hartson defining our
regulatory process. Hogan & Hartson is the #1 FDA regulatory consulting firm to the spine industry. 

  
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 FDA Clinical Development Plan for Polymer Alone Technology to treat the closed wound spinal cord injury

  

			
	A: January 2007 to September 2007	 	– Complete Preclinical Studies
	B: Oct. 2007 to February 2008	 	– Complete Monkey Efficacy Study
	C: March 2008 to March 2009	 	– File IDE and complete Pilot Study on Humans
	D: May 2009 to Oct 2010	 	– Conduct FDA Pivotal Trial
	E: Dec 2010	 	– Submit for FDA approval
	F: Sept 2011	 	– Receive FDA Approval and Product Launch
	G: Oct. 2011 to December 2012	 	– Achieve full penetration in Main Trauma Hospitals

 Preliminary discussions with the FDA are encouraging for FDA Fast Track status for our polymer based medical device, and expected
regulatory approvals are: 
 FDA Clinical Development Plan for Stem Cell Based Technology to treat the open wound spinal cord injury. 

 

			
	A: May 07 – March 2008	 	– Complete Preclinical Studies
	B: April 2008 – October 2012	 	– Complete 3 Primate Efficacy Studies
	C: Jan 2010 – Jan 2011	 	– File IDE and complete Pilot Study on Humans
	D: Jan 2011 to Mar 201 2	 	– Conduct FDA Pivotal Trial
	E: June 2012	 	– Submit for FDA approval
	F: June 2013	 	– Receive FDA Approval and Product Launch

 Our work will be carried out in Cambridge, MA. We are in the process of developing a plan for our labs. I
expect to have a final plan for our InVivo lab by May 30th. I have a
group of consultants working on our lab plan, design, etc. and they owe us a final report that will include location options, equipment, regulatory plan, costs, etc by May 30, 2007 
 We will fund a fully staffed lab to bring our technology to market as follows: 
 We will fund 10 InVivo Research
Laboratory Personnel 
 1- Lab director 
 1- Biomedical and
chemical engineers 
 1- Neurobiology postdoctoral fellows 

1- stem cell biology postdoctoral fellow 

  
 43 

 2- lab technicians 
 1-
office secretary 
 1- electrophysiology postdoctoral fellow 

1- animal work specialist technician 
 1- lab manager: supply order,
protocol file records, etc. 
 We are negotiating with the top leader in the spinal implant industry for a strategic partnership. 

We are currently in discussions with: 

	•	 	 Johnson & Johnson. 

	•	 	 Medtronic Spine 

	•	 	 Stryker Spine 

	•	 	 Synthes Spine 

	•	 	 Abott Spine 

 We have every indication that we
will receive terms sheet by June 2007. 
 We expect to raise $3M - $6M in a series A in the next 60 days. 

Milestones and Funding Requirements 
  

					
	Milestone	 	Date	 	Cumulative Investment
	Pre-Clinical & IDE	 	March 2008	 	$6M
	Human Feasibility Trial	 	March 2009	 	$14M
	CE Mark Approval	 	Oct.     2009	 	$28M
	Complete Pivotal Trial	 	Oct      2010	 	$52M
	US FDA Approval	 	Sept    2011	 	$61M

 Please let me know if you have any questions. 
 Best Regards, 
 Frank Reynolds, CEO 
 InVivo Therapeutics Corporation 

  
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 Appendix 3: Commercialization Plan 
 To be submitted no later than July 2, 2012. 

  
 45

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