Document:

EX-10.2

 

EXHIBIT 10.2

US$700,000,000

TERM LOAN FACILITY AGREEMENT

Dated April 20, 2005

between

MITTAL STEEL US FINANCE LLC,

as Lender

and

MITTAL STEEL USA ISG INC.,

as Borrower

 

 

CONTENTS

	 	 	 	 	 	 	 
	Clause	 	 	 	Page
	 
	 	 	 	 	 	 
	1.

	 	DEFINITIONS AND INTERPRETATION
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	THE FACILITY
	 	 	6	 
	 
	 	 	 	 	 	 
	3.

	 	PURPOSE
	 	 	7	 
	 
	 	 	 	 	 	 
	4.

	 	PAYMENT OF LOAN
	 	 	7	 
	 
	 	 	 	 	 	 
	5.

	 	REPAYMENT
	 	 	7	 
	 
	 	 	 	 	 	 
	6.

	 	PREPAYMENT AND CANCELLATION
	 	 	7	 
	 
	 	 	 	 	 	 
	7.

	 	INTEREST
	 	 	8	 
	 
	 	 	 	 	 	 
	8.

	 	INTEREST PERIODS
	 	 	9	 
	 
	 	 	 	 	 	 
	9.

	 	REPRESENTATIONS
	 	 	9	 
	 
	 	 	 	 	 	 
	10.

	 	GENERAL UNDERTAKINGS
	 	 	10	 
	 
	 	 	 	 	 	 
	11.

	 	EVENTS OF DEFAULT
	 	 	13	 
	 
	 	 	 	 	 	 
	12.

	 	PAYMENT MECHANICS
	 	 	13	 
	 
	 	 	 	 	 	 
	13.

	 	NOTICES
	 	 	14	 
	 
	 	 	 	 	 	 
	14.

	 	CALCULATIONS AND CERTIFICATES
	 	 	15	 
	 
	 	 	 	 	 	 
	15.

	 	PARTIAL INVALIDITY
	 	 	15	 
	 
	 	 	 	 	 	 
	16.

	 	REMEDIES AND WAIVERS
	 	 	15	 
	 
	 	 	 	 	 	 
	17.

	 	AMENDMENTS AND WAIVERS
	 	 	15	 
	 
	 	 	 	 	 	 
	18.

	 	ASSIGNMENTS AND TRANSFERS
	 	 	15	 
	 
	 	 	 	 	 	 
	19.

	 	COUNTERPARTS
	 	 	15	 
	 
	 	 	 	 	 	 
	20.

	 	GOVERNING LAW
	 	 	15	 
	 
	 	 	 	 	 	 
	21.

	 	JURISDICTION
	 	 	16	 
	 
	 	 	 	 	 	 
	22.

	 	WAIVER OF JURY TRIAL
	 	 	17	 

 

 

THIS AGREEMENT is dated April 20, 2005 and made between:

	(1)  	Mittal Steel US Finance LLC, a Delaware limited liability company, having its registered
office at c/o Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington,
County of New Castle, Delaware (the “Lender”); and
	 
	(2)  	Mittal Steel USA ISG Inc. a Delaware corporation, having its registered office at c/o
Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, County of New
Castle, Delaware (the “Borrower”).

WHEREAS:

	        	The Lender has agreed to make available to the Borrower an unsecured term loan facility in a
maximum aggregate amount of US$700,000,000.

IT IS AGREED as follows:

	1.  	DEFINITIONS AND INTERPRETATION
	 
	   	1.1 Definitions
	 
	   	In this Agreement:
	 
	   	“Affiliate” means, as to any Person, or other Person that, directly or indirectly, controls,
is controlled by or is under common control with such Person or is a director or officers of
such Person. For purposes of this definition, the term “control” (including the terms
“controlling”, “controlled by” and “under common control with”) of a Person means the
possession, direct or indirect , of the power to vote 5% or more of the voting stock of such
Person or to direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting stock, by contract or otherwise.
	 
	   	“Authorization” means an authorization, consent, approval, resolution, license, exemption,
filing, notarization or registration.
	 
	   	“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for
general business in London and New York.
	 
	   	“Capital Lease Obligations” means, as to any Person, the obligations of such Person to pay
rent or other amounts under a lease of (or other agreement conveying the right to use) real
and/or personal property which obligations are required to be classified and accounted for
as a capital lease on a balance sheet of such Person under GAAP (including Statement of
Financial Accounting Standards No. 13 of the Financial Accounting Standards Board) and, for
purposes of this Agreement, the amount of such obligations shall be the capitalized amount
thereof, determined in accordance with GAAP (including such Statement No. 13).
	 
	   	“Default” means an Event of Default or any event or circumstance specified in Clause 11

 

 

	   	(Events of Default) which would (with the expiry of a grace period, the giving of notice or
any combination of any of the foregoing) be an Event of Default.
	 
	   	“Event of Default” means any event or circumstance specified as such in Clause 11 (Events of
Default).
	 
	   	“Facility” means the US$700,000,000 term loan facility made available under this Agreement,
to the extent not cancelled or reduced under this Agreement.
	 
	   	“Facility Maintenance Fee” means the rate per annum calculated as follows:
	 
	   	
	 
	   	Where:
	 
	   	“F” are (i) the fees paid by 3098581 Nova Scotia Company to Mittal Steel Company N.V.
or an affiliate of Mittal Steel Company N.V. in connection with financing the ISG Merger for
the Interest Period and (ii) any withholding taxes paid by 3098581 Nova Scotia Company to
any taxing jurisdiction in connection with financing the ISG Merger for the Interest Period;
	 
	   	“L” is the principal amount outstanding of the Loan; and
	 
	   	“D” is the sum of the days in the applicable Interest Period.
	 
	   	“Fitch” means Fitch Ratings Limited or any successor to its rating business.
	 
	   	“GAAP” means U.S. generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified
Public Accountants and statement and pronouncements of the Financial Accounting Standards
Board or in such other statement by such other entity as having been approved by a
significant segment of the accounting profession, which are in effect from time to time;
provided, however, that for purposes of this definition the Statement of Financial
Accounting Standards No. 133 of the Financial Accounting Standards Board shall be deemed to
be of no force and effect.
	 
	   	“Governmental Authority” means any nation or government, any state, province, city,
municipal entity or other political subdivision thereof, and any governmental,
executive, legislative, judicial, administrative or regulatory agency, department,
authority, instrumentality, commission, board, bureau or similar body, whether federal,
state, provincial, territorial, local or foreign.
	 
	   	“Governmental Authorization” means any authorization, approval, consent, franchise, license,
covenant, order, ruling, permit, certification, exemption, notice, declaration or
similar right, undertaking or other action of, to or by, or any filing, qualification or

 

 

	   	registration with, any Governmental Authority.

	   	“Indebtedness” means, as to any Person: (a) indebtedness created, issued or incurred by
such Person for borrowed money (whether by loan or the issuance and sale of debt
securities); (b) obligations of such Person to pay the deferred purchase or acquisition
price of property or services, other than trade accounts payable (other than for borrowed
money) arising, and accrued expenses incurred, in the ordinary course of business so long as
such trade accounts payable are payable within 90 days of the date the respective goods are
delivered or the respective services are rendered; (c) indebtedness of others secured by a
Lien on the property of such Person, whether or not the respective indebtedness so secured
has been assumed by such Person; (d) obligations of such Person in respect of letters of
credit or similar instruments issued or accepted by banks and other financial institutions
for the account of such Person; (e) Capital Lease Obligations of such Person; and (f)
indebtedness of others Guaranteed by such Person.
	 
	   	“Interest Period” means, in relation to the Loan, each period determined in accordance with
Clause 8 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in
accordance with Clause 7.4 (Default interest).
	 
	   	“ISG Merger” means the merger consummated between Park Acquisition Corp. and International
Steel Group Inc. as contemplated by that certain Agreement and Plan of Merger and
Reorganization dated as of October 24, 2004, as amended, among Mittal Steel Company N.V.
(f/k/a Ispat International N.V.), Park Acquisition Corp. and International Steel Group Inc.
	 
	   	“LIBOR” means, in relation to any Loan:

	 	(a)  	the applicable Screen Rate; or
	 
	 	(b)  	(if no Screen Rate is available for United States dollars for
the Interest Period of the Loan) the arithmetic mean of the rates (rounded
upwards to four decimal places) as supplied to the Lender at its request quoted
by the Reference Bank to leading banks in the London interbank market,

	   	as of the 11:00 a.m. (London time) on the Quotation Day for the offering of deposits in
United States dollars and for a period comparable to the Interest Period for the Loan.
	 
	   	“Lien” means, with any lien, security interest or other charge or encumbrance of any kind,
or nay other type of preferential arrangement, including, without limitation, the lien or
retained security title of a conditional vendor and any easement, right of way or other
encumbrance on title to real property.
	 
	   	“Loan” means a loan made or to be made under the Facility or the principal amount
outstanding for the time being of that loan.
	 
	   	“Margin” means the rate per annum calculated in accordance with Clause 7.3 (Margin

 

 

	   	Adjustment Ratings).

	   	“Material Adverse Effect” means a change to the business or trading prospects of the
Borrower that, in the reasonable opinion of the Lender, materially affects its ability to
carry out its payment obligations under this Agreement.
	 
	   	“Month” means a period starting on one day in a calendar month and ending on the numerically
corresponding day in the next calendar month, except that:

	 	(a)  	(subject to paragraph (c) below) if the numerically
corresponding day is not a Business Day, that period shall end on the next
Business Day in that calendar month in which that period is to end if there is
one, or if there is not, on the immediately preceding Business Day;
	 
	 	(b)  	if there is no numerically corresponding day in the calendar
month in which that period is to end, that period shall end on the last
Business Day in that calendar month; and
	 
	 	(c)  	if an Interest Period begins on the last Business Day of a
calendar month, that Interest Period shall end on the last Business Day in the
calendar month in which that Interest Period is to end.

	   	The above rules will only apply to the last Month of any period.
	 
	   	“Moody’s” means Moody’s Investors Service Limited or any successor to its rating business.
	 
	   	“Party” means a party to this Agreement.
	 
	   	“Permitted Liens” means such of the following as to which no enforcement, collection,
execution, levy or foreclosure proceeding shall have been commenced: (a) Liens imposed by
any Governmental Authority for taxes, assessments or charges not yet due or which are being
contested in good faith and by appropriate proceedings if, unless the amount thereof is not
material with respect to it or its financial condition, adequate reserves with respect
thereto are maintained on the books of the Borrower or any of its Material Subsidiaries, as
the case may be, in accordance with GAAP; (b) Liens imposed by law, such as materialmen’s,
mechanic’s, carrier’s, workmen’s and repairman’s Liens and other such similar Liens arising
in the ordinary course of business securing obligation that are not overdue for a period of
more than 30 days; (c) pledges or deposits to secure obligations under workers’ compensation
laws or similar legislation or to secure public or statutory obligations; and (d) easements,
rights of way and other encumbrances on title to real property that do not render title to
the property encumbered thereby unmarketable or materially adversely affect the use of such
property for its present purposes.
	 
	   	“Person” means an individual, partnership, corporation (including a business trust), joint
stock company, trust, unincorporated association, joint venture, limited liability company
or other entity, or a government or any political subdivision or agency thereof.
	 
	   	“Quotation Day” means, in relation to any period for which an interest rate is to be

 

 

	   	determined, two Business Days before the first day of that period unless market practice
differs in which case the Quotation Day will be determined by the Lender in accordance with
market practice (and if quotations would normally be given by leading banks on more than one
day, the Quotation Day will be the last of those days).

	   	“Reference Bank” means the principal London, England office of such bank as may be appointed
by the Lender in consultation with the Borrower.
	 
	   	“S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.
or any successor to its rating business.
	 
	   	“Screen Rate” means the British Bankers’ Association Interest Settlement Rate for United
States dollars for the relevant period displayed on the appropriate page of the Reuters
screen. If the agreed page is replaced or service ceases to be available, the Lender may
specify another page or service displaying the appropriate rate after consultation with the
Borrower.
	 
	   	“Termination Date” means the earlier of (i) April 21, 2010 or (ii) the repayment in full of
the Facility.
	 
	   	“Unpaid Sum” means any sum due and payable but unpaid by the Borrower under this Agreement.
	 
	   	“Utilization” means a utilization of the Facility by way of a Loan.
	 
	   	“Utilization Date” means the date of a Utilization, being the date on which a Loan is to be
made.

	   	1.2 Construction

	 	(a)  	Unless a contrary indication appears, any reference in this Agreement to:

	 	(i)  	“Lender”, “Borrower” or “Party” shall be construed so
as to include its successors in title, permitted assigns and permitted
transferees, to the extent permissible under this Agreement;
	 
	 	(ii)  	“assets” includes present and future properties,
revenues and rights of every description;
	 
	 	(iii)  	this “Agreement” or any other agreement or instrument
is a reference to such agreement or instrument as amended, amended and
restated or otherwise modified;
	 
	 	(iv)  	“indebtedness” includes any obligation (whether
incurred as principal or as surety) for the payment or repayment of
money, whether present or future, actual or contingent;

 

 

	 	(v)  	a “person” includes any individual, firm, company,
corporation (including a business trust), joint stock company,
government or any political subdivision or agency thereof, trust,
unincorporated association, joint venture, limited liability company or
partnership (whether or not having separate legal personality) or two
or more of the foregoing;
	 
	 	(vi)  	a “regulation” includes any regulation, rule, official
directive, request or guideline (whether or not having the force of
law) of any governmental, intergovernmental or supranational body,
agency, department or regulatory, self-regulatory or other authority or
organization;
	 
	 	(vii)  	a provision of law is a reference to that provision as
amended or re-enacted; and
	 
	 	(viii)  	a time of day is a reference to New York time.

	 	(b)  	Section, Clause and Schedule headings are for ease of reference only;
	 
	 	(c)  	unless a contrary indication appears, a term used in any notice given under or
in connection with this Agreement has the same meaning in that notice as in this
Agreement.
	 
	 	(d)  	a Default is “continuing” if it has not been remedied or waived.

	2.  	THE FACILITY

     Subject to the terms of this Agreement, the Lender shall, on the terms and conditions
hereinafter set forth, make available to the Borrower the Facility, in a single Utilization on
April 21, 2005 in an amount of US$700,000,000. Amounts borrowed under this Clause 2 and repaid or
prepaid may not be reborrowed.

	3.  	PURPOSE

     All amounts borrowed by the Borrower under the Facility shall be used for general corporate
purposes including for the avoidance of doubt, making a loan to an affiliate of the Borrower.

	4.  	PAYMENT OF LOAN TO BORROWER

     The Lender will pay the amount borrowed into the bank account of Borrower at HSBC Bank USA
N.A.

	5.  	REPAYMENT OF LOANS

     The Borrower shall repay the Loan that it has drawn (which amount shall be reduced as a result
of a prepayment in accordance with Clause 6 (Prepayment and Cancellation)) on the Termination Date.

 

 

	6.  	PREPAYMENT AND CANCELLATION

	   	6.1 Illegality

     If it becomes unlawful in any applicable jurisdiction for the Lender to perform any of its
obligations as contemplated by this Agreement or to fund or maintain its participation in the Loan:

	 	(a)  	the Lender shall promptly notify the Borrower upon becoming
aware of that event;
	 
	 	(b)  	the Loan will be immediately cancelled; and
	 
	 	(c)  	the Borrower shall repay the Loan on the last day of its
Interest Period, or, if earlier, on the date specified by the Lender (being no
earlier than the last day of any applicable grace period permitted by law).

	   	6.2 Voluntary Cancellation

     The Borrower may, if it gives the Lender prior notice, cancel the whole or any part of the
unused portion of the Facility. Any cancellation under this Clause shall accordingly reduce the
Loan.

	   	6.3 Voluntary Prepayment Of Loans

     The Borrower having drawn the Loan may, if it gives the Lender prior notice, prepay the whole
or any part of the Loan.

	7.  	INTEREST

	   	7.1 Calculation Of Interest

     The rate of interest on the Loan for each Interest Period is the percentage rate per annum
that is the aggregate of:

	 	(a)  	the Margin plus 0.125%;
	 
	 	(b)  	LIBOR; and
	 
	 	(c)  	the Facility Maintenance Fee.

	   	7.2 Payment Of Interest

     The Borrower shall pay accrued interest on the Loan at the rate set forth in Clause 7.1
(Calculation of Interest) on the last day of each Interest Period (and, if the Interest Period is
longer than six Months, on the dates falling at six monthly intervals after the first day of the
Interest Period).

 

 

	   	7.3 Margin adjustments

	 	(a)  	In this Subclause:

	 	(i)  	Rating Agency means Moody’s, S&P and Fitch or any
other rating agency approved by the Borrower and the Lender.
	 
	 	(ii)  	Long Term Credit Rating means, at any time in
respect of a Rating Agency:

	 	A.  	the long term credit rating
published at that time by that Rating Agency in respect of Mittal
Steel Company N.V.’s unsubordinated unsecured debt; or
	 
	 	B.  	if such a rating has not at that
time been given by that Rating Agency, the long term corporate
credit rating given to Mittal Steel Company N.V. at that time by
that Rating Agency.

	 	(iii)  	The initial Margin is 0.475% per annum until the
date falling six months after the date of this Agreement.
	 
	 	(iv)  	Subject to the other provisions of this Subclause,
after the date falling six months after the date of this Agreement the
Margin will be subsequently calculated by reference to the table below:

	 	 	 	 	 
	Column 1	 	Column 2	 
	Long Term Credit Rating	 	Margin	 
	 	 	% per annum	 
	Moody’s	 	S&P/Fitch	 	 
	A3 or above	 	A- or above	 	0.25
	Baa1	 	BBB+	 	0.30
	Baa2	 	BBB	 	0.35
	Baa3	 	BBB-	 	0.425
	Below Baa3	 	Below BBB-	 	0.60

	 	(b)  	Any change in the Margin will, subject to paragraph (c) below, apply on the
Business Day following receipt by the Lender of the change in rating.
	 
	 	(c)  	For so long as an Event of Default is outstanding or Mittal
Steel Company N.V. has no Long term Credit Rating from any Rating Agency, the
Margin will be the highest applicable rate, being 0.60% per annum.

	   	7.4 Default Interest

	 	(a)  	If the Borrower fails to pay any amount payable by it under
this Agreement on its due date, interest shall accrue on the overdue amount
from the due date up to the date of actual payment (both before and after
judgment) at a rate which, subject to paragraph (b) below, is two per cent.
higher than the rate that would have been payable if the overdue amount had,
during the period

 

 

	 	   	of non-payment, constituted a Loan in the currency of the overdue amount for
successive Interest Periods, each of a duration selected by the Lender (acting
reasonably). Any interest accruing under this Clause 7.4 shall be payable by
the Borrower on demand.

	 	(b)  	If any overdue amount consists of all or part of a Loan which
became due on a day that was not the last day of an Interest Period relating to
that Loan:

	 	(i)  	the first Interest Period for that overdue amount
shall have a duration equal to the unexpired portion of the current
Interest Period relating to that Loan; and
	 
	 	(ii)  	the rate of interest applying to the overdue amount
during that first Interest Period shall be one percent higher than the
rate which would have applied if the overdue amount had not become due.

	 	(c)  	Default interest (if unpaid) arising on an overdue amount will
be compounded with the overdue amount at the end of each Interest Period
applicable to that overdue amount but will remain immediately due and payable.

	   	7.5 Notification Of Rates Of Interest

     The Lender shall promptly notify the Borrower of the determination of a rate of interest under
this Agreement.

8. INTEREST PERIODS

	   	8.1 Selection Of Interest Periods

	 	(a)  	An Interest Period for a Loan shall be of six Months or any
other period agreed between the Borrower and the Lender.
	 
	 	(b)  	An Interest Period for a Loan shall not extend beyond the
Termination Date.
	 
	 	(c)  	The Interest Period for the Loan shall start on the Utilization
Date for the Loan and thereafter, each subsequent period commencing on the last
day of the immediately preceding Interest Period and ending on the last day of
the period agreed by the Borrower and the Lender.

	   	8.2 Non-Business Days

     If an Interest Period would otherwise end on a day which is not a Business Day, that Interest
Period will instead end on the next Business Day in that calendar month (if there is one) or the
preceding Business Day (if there is not).

 

 

	9.  	REPRESENTATIONS

     The Borrower makes the representations and warranties set out in this Clause 9 to the Lender
on the date of this Agreement.

	   	9.1 Status

	 	(a)  	It is a corporation duly organized, validly existing and in
good standing under the law of its jurisdiction of incorporation.
	 
	 	(b)  	It has all requisite corporate, power and authority, including,
without limitation, all Governmental Authorizations to carry on its business as
now conducted and as proposed to be conducted.

	   	9.2 Binding Obligations

     The obligations expressed to be assumed by it in this Agreement are, subject to any general
principles of law limiting its obligations, legal, valid, binding and enforceable obligations.

	   	9.3 Power And Authority

     It has the power to enter into, perform and deliver, and has taken all necessary action to
authorize its entry into, performance and delivery of, this Agreement and the transactions
contemplated herein.

	   	9.4 Validity And Admissibility In Evidence

     All Authorizations required or desirable:

	 	(a)  	to enable it lawfully to enter into, exercise its rights and
comply with its obligations in this Agreement; and
	 
	 	(b)  	to make this Agreement admissible in evidence in its
jurisdiction of incorporation,

	   	have been obtained or effected and are in full force and effect.
	 
	10.  	GENERAL UNDERTAKINGS

     The undertakings in this Clause 10 remain in force from the date of this Agreement for so long
as any amount is outstanding under the Facility.

	   	10.1 Authorizations

     The Borrower shall promptly obtain, comply with and do all that is necessary to maintain in
full force and effect any Authorization and Governmental Authorization required under any law or
regulation of its jurisdiction of incorporation to enable it to perform its material

 

 

obligations under this Agreement and to ensure the legality, validity, enforceability or
admissibility in evidence in its jurisdiction of incorporation of this Agreement.

	   	10.2 Compliance With Laws

     The Borrower shall comply in all material respects with all laws to which it may be subject,
if failure so to comply would materially impair its ability to perform its obligations under this
Agreement.

	   	10.3 Reporting Requirements

     The Borrower shall deliver to the Lender:

	 	(a)  	as soon as available and in any event within 120 days after the end of each fiscal
year of the Borrower, consolidated statements of earnings, cash flow and common
shareholders’ equity of the Borrower for such year and the related consolidated balance
sheet as at the end of such year, setting forth in each case in comparative form the
corresponding consolidated figures for the preceding fiscal year, accompanied by a
certificate of a manager of the Borrower, which certificate shall state that said financial
statements fairly present the financial condition and results of operations of the Borrower
in accordance with GAAP consistently applied, as at the end of, and for, such fiscal year;
and
	 
	 	(b)  	promptly after the Borrower knows or has reason to know that any Default has
occurred, a notice of such Default describing the same in reasonable detail and, together
with such notice or as soon thereafter as possible, a description of the action that the
Borrower has taken and proposes to take with respect thereto.

     The Borrower will furnish to the Lender, at the time it furnishes each set of financial
statements pursuant to paragraph (a) or (b) above, a certificate of a manager of the Borrower to
the effect that no Default has occurred and is continuing (or, if any Default has occurred and is
continuing, describing the same in reasonable detail and describing the action that the Borrower
has taken and proposes to take with respect thereto).

	   	10.4 Litigation

     The Borrower will promptly give to the Lender notice of all legal or arbitral proceedings, and
of all proceedings by or before any governmental or regulatory authority or agency, and any
material development in respect of such legal or other proceedings, affecting the Borrower, except
any proceeding which, if adversely determined, would not have a Material Adverse Effect.

	   	10.5 Corporate Existence, Etc.

     The Borrower will:

	 	(a)  	preserve and maintain its legal existence and all of its material rights, privileges and
franchises (provided that nothing in this Clause shall prohibit any transaction

 

 

	 	   	expressly permitted under Clause 10.9 (Mergers));

	 	(b)  	comply with the requirements of all applicable laws, rules, regulations and orders of any
Governmental Authority if failure to comply with such requirements is likely to result in a
Material Adverse Effect;
	 
	 	(c)  	pay and discharge all taxes, assessments and governmental charges or levies imposed on it
or on its income or profits or on any of its property prior to the date on which penalties attach
thereto, except for any such tax, assessment, charge or levy the payment of which is being
contested in good faith and by proper proceedings and against which adequate reserves are being
maintained;
	 
	 	(d)  	maintain all of its properties used or useful in its business in good working order and
condition, ordinary wear and tear excepted; provided, however, that the Borrower may discontinue
the maintenance of a property if such discontinuance is, in the opinion of the Borrower, desirable
in the conduct of its business and is not likely to have a Material Adverse Effect; and
	 
	 	(e)  	upon reasonable advance notice, permit representatives of the Lender, during normal
business hours, to examine, copy and make extracts from its books and records, to inspect its
properties, and to discuss its business and affairs with its officers, all to the extent reasonably
requested by the Lender.

	10.6  	Insurance

     The Borrower will maintain insurance underwritten by financially sound and reputable insurers,
or self insurance (in accordance with normal industry practice) in such amounts and against such
risks as ordinarily is carried or maintained by owners of like businesses and properties in similar
circumstances.

	   	10.7 Transactions with Affiliates.

     The Borrower will conduct all transactions otherwise permitted under this Agreement with any
of their Affiliates on terms that are fair and reasonable and no less favorable to the Borrower
than it would obtain in a comparable arm’s-length transaction with a Person not an Affiliate.

	   	10.8 Limitation on Liens

     The Borrower will not create or suffer to exist any Lien on or with respect to any of its
properties, whether now owned or hereafter acquired, or assign, or permit any of its subsidiaries
to assign, any right to receive income other than:

	 	(a)  	Permitted Liens,
	 
	 	(b)  	Purchase money Liens upon or in any real property or equipment acquired or held by the
Borrower in the ordinary course of business to secure the purchase price of such property or
equipment or to secure Indebtedness incurred solely for the purpose of financing the

 

 

	 	   	acquisition of such property or equipment, or Liens existing on such property or equipment at
the time of its acquisition (other than any such Liens created in contemplation of such acquisition
that were not incurred to finance the acquisition of such property) or extension, renewals or
replacements of any of the foregoing for the same or a lesser amount, provided however, that no
such Lien shall extend to or cover any property of any character other than the real property of
equipment being acquired, and no such extension, renewal or replacement shall extend to or cover
any properties not theretofore subject to the Lien being extended, renewed or replaced, provided
further that the aggregate principal amount of the indebtedness secured by the Liens referred to in
this subclause (b) shall not exceed $250,000,000,

	 	(c)  	Liens on property of a Person existing at the time such Person is merged into or
consolidated with the Borrower; provided that such Liens were not created in contemplation of such
merger, consolidation or acquisition and do not extend to any assets other than those of the Person
so merged into or consolidated with the Borrower or acquired by the Borrower,
	 
	 	(d)  	Liens in existence on the date hereof and additional Liens upon property, assets or
revenues created after the date hereof, provided that the aggregate outstanding Indebtedness
secured by Liens described in clauses (a) through (d) hereof shall not at any time exceed
$250,000,000 in the aggregate; and
	 
	 	(e)  	any extension, renewal or replacement of the foregoing.

	   	10.9 Mergers

The Borrower will not merge or consolidate with or into, or convey, transfer, sell, lease or
otherwise dispose of (whether in one transaction or a series of transactions) all or substantially
all of its assets (whether now owned or hereafter acquired) to, any Person, except that any
subsidiary of the Borrower or the Borrower may merge or consolidate with or into, or dispose of
assets to, any other subsidiary of the Borrower, and except that any subsidiary of the Borrower may
merge into or dispose of assets to the Borrower and the Borrower may merge with any other Person so
long as the Borrower is the surviving corporation, provided, in each case, that no Default shall
have occurred and be continuing at the time of such proposed transaction would result therefrom.

	   	10.10 Indebtedness

The Borrower will not, nor will it permit any Subsidiary to create, incur, assume or suffer to
exist any Indebtedness, except:

	 	(a)  	Indebtedness under this Agreement;
	 
	 	(b)  	Indebtedness owed to a Person of which such subsidiary is a subsidiary;
	 
	 	(c)  	Indebtedness of any subsidiary existing on the date hereof, and any renewal and
refinancing thereof, provided that the principal amount thereof is not increased and
no other subsidiary becomes obligated in respect thereof;
	 
	 	(d)  	Indebtedness of any subsidiary of the Borrower assigned to such subsidiary by the
Borrower as permitted by Clause 18 (Assignments and Transfers) hereof; and

 

 

	 	(e)  	Other Indebtedness in an aggregate amount of all subsidiaries not to exceed
$250,000,000 outstanding at any time.

	11.  	EVENTS OF DEFAULT

     Each of the events or circumstances set out in Clause 11 is an Event of Default.

	   	11.1 Non-Payment

     The Borrower does not pay on the due date any amount payable pursuant to the Agreement at the
place at and in the currency in which it is expressed to be payable payment unless such payment is
made within 5 Business Days of its due date.

	   	11.2 Other Obligations

     The Borrower does not comply with any provision of this Agreement (other than that referred to
in Clause 11.1 (Non-Payment)) unless such non-compliance is remedied within 21 days of the Borrower
becoming aware of such non-compliance.

	   	11.3 Insolvency

     The Borrower shall generally not pay its debts as they become due, or shall admit in writing
its inability to pay its debts generally, or shall make a general assignment for the benefit of
creditors, or any proceeding shall be instituted by or against the Borrower seeking to adjudicate
it bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief, or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for
relief or appointment of a receiver, trustee, custodian, or other similar official for it or for
any substantial part of its property, and, in the case of any such proceeding instituted against it
(but not instituted by it) that is being diligently contested by it in good faith, either such
proceeding shall remain undismissed or unstayed for a period of 60 days or any of the actions
sought in such proceeding (including, without limitation, the entry of an order for relief against,
or the appointment of a receiver, trustee, custodian or other similar official for, it or any
substantial part of its property) shall occur; or the Borrower shall take any organizational action
to authorize any of the actions set forth above in this subsection.

	   	11.4 Acceleration
	 
	   	On and at any time after the occurrence of an Event of Default provided always that such
Event of Default be continuing the Lender may by notice to the Borrower:

	 	(a)  	cease to be under any obligation to make a Loan available;
	 
	 	(b)  	declare that all or part of the Loan, together with accrued
interest, and all other amounts accrued or outstanding under this Agreement be
immediately due and payable, whereupon they shall become immediately due and
payable; and/or

 

 

	 	(c)  	declare that all or part of the Loan be payable on demand,
whereupon they shall immediately become payable on demand by the Lender.

	12.  	PAYMENT MECHANICS
	 
	   	12.1 Payments

	 	(a)  	On each date on which the Borrower or the Lender is required to
make a payment under this Agreement, the Borrower or the Lender shall make the
same available to the payee for value on the due date at the time and in such
funds specified by the payee as being customary at the time for settlement of
transactions in the relevant currency in the place of payment.
	 
	 	(b)  	Payment shall be made to such account in the principal
financial center of the country of that currency with such bank as the payee
specifies.

	   	12.2 Business Days

	 	(a)  	Any payment which is due to be made on a day that is not a
Business Day shall be made on the next Business Day in the same calendar month
(if there is one) or the preceding Business Day (if there is not).
	 
	 	(b)  	During any extension of the due date for payment of any
principal or Unpaid Sum under this Agreement interest is payable on the
principal or Unpaid Sum at the rate payable on the original due date.

	   	12.3 Currency Of Account

     United States dollars is the currency of account and payment for any sum due from the Borrower
under this Agreement.

	13.  	NOTICES
	 
	   	13.1 Communications In Writing

     Any communication to be made under or in connection with this Agreement shall be made in
writing and, unless otherwise stated, may be made by fax or letter in English.

	   	13.2 Addresses

     The address and fax number (and the department or officer, if any, for whose attention the
communication is to be made) of each Party for any communication or document to be made or
delivered under or in connection with this Agreement is that identified with its name below or any
substitute address and fax number or department or officer as the Party may notify to the other
Parties by not less than five Business Days’ notice.

 

 

	 	 	 
	

	 	To the Lender:
	 

	 	Mittal Steel US Finance LLC
	

	 	c/o 3210 Watling Street
	

	 	East Chicago, IN 46312
	

	 	Attention: Thomas A. McCue
	 
	 	 
	

	 	To the Borrower:
	 
	 	 
	

	 	Mittal Steel USA ISG Inc.
	

	 	4020 Kinross Lakes Parkway
	

	 	Richfield, Ohio 44286-9000
	

	 	Attention: Mr. Michael G. Rippey

	13.3  	English Language

     Any notice and documents given under or in connection with this Agreement must be in English.

	14.  	DAY COUNT CONVENTION

     Any interest, commission or fee accruing under this Agreement will accrue from day to day and
is calculated on the basis of the actual number of days elapsed and a year of 365 or 366 days, as
the case may be, or, in any case where the practice differs, in accordance with market practice.
Each determination by the Lender of an interest rate, fee or commission hereunder shall be
conclusive and binding for all purposes, absent manifest error.

	15.  	PARTIAL INVALIDITY

     If, at any time, any provision of this Agreement is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or
enforceability of the remaining provisions nor the legality, validity or enforceability of such
provision under the law of any other jurisdiction will in any way be affected or impaired.

	16.  	REMEDIES AND WAIVERS

     No failure to exercise, nor any delay in exercising, on the part of the Lender, any right or
remedy under this Agreement shall operate as a waiver, nor shall any single or partial exercise of
any right or remedy prevent any further or other exercise or the exercise of any other right or
remedy. The rights and remedies provided in this Agreement are cumulative and not exclusive of any
rights or remedies provided by law.

	17.  	AMENDMENTS AND WAIVERS

     Any term of this Agreement may be amended or waived only with the consent of the Lender and
the Borrower and any such amendment or waiver will be binding on all Parties.

 

 

	18.  	ASSIGNMENTS AND TRANSFERS

     No Party may assign or transfer any of its respective rights and obligations to any person
without the express written consent of the other Party, provided that the Borrower may
transfer and assign all of its rights and obligations to one or more of its subsidiaries (the
“Assuming Subsidiary”) under this agreement, provided however, that such assignment shall
be of all of the Borrower’s rights and obligations under this Agreement. Upon such execution,
delivery, acceptance and recording of documentation acceptable to the Lender, from and after the
date of such transfer (i) the Assuming Subsidiary shall be a party hereto and shall have the rights
and obligations of the Borrower hereunder and (ii) the Borrower shall relinquish its rights and be
released from its obligations under this Agreement, and cease to be a party to this Agreement.

	19.  	COUNTERPARTS

     This Agreement may be executed in any number of counterparts, and this has the same effect as
if the signatures on the counterparts were on a single copy of this Agreement.

	20.  	GOVERNING LAW

     This Agreement shall be governed by, and construed in accordance with, the laws of the State
of New York.

	21.  	JURISDICTION

     (a) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and
its property, to the nonexclusive jurisdiction of any New York State court or Federal court of the
United States of America sitting in New York City, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to this Agreement, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard and determined in
any such New York State court or, to the fullest extent permitted by law, in such Federal court.
Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Nothing in this Agreement shall affect any right that any party may
otherwise have to bring any action or proceeding relating to this Agreement in the courts of any
jurisdiction.

     (b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection that it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement to which it
is a party in any New York State or Federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

	22.  	WAIVER OF JURY TRIAL

Each of the Borrower, and the Lender irrevocably waives all right to trial by jury in any action,

 

 

proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or
relating to this Agreement, the Utilization, or the actions of the Lender in the negotiation,
administration, performance or enforcement thereof.

[Remainder of Page Intentionally Left Blank; Signatures Follow]

 

 

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

	 	 	 	 	 
	 	MITTAL STEEL USA ISG INC.,

as Borrower

 	 
	 	By:  	/s/ Michael G. Rippey
 	 
	 	 	Name:  	Michael G. Rippey 	 
	 	 	Title:  	Executive Vice President 	 
	 

	 	 	 	 	 
	 	MITTAL STEEL US FINANCE LLC,

as Lender

 	 
	 	By:  	/s/ Marc R. Jeske
 	 
	 	 	Name:  	Marc R. Jeske 	 
	 	 	Title:  	ManagerEX-10.3

 

EXHIBIT 10.3

Promissory Note

      

			
	US$425,476,890
	 	Dated: April 20, 2005

THE UNDERSIGNED, MITTAL STEEL USA ISG INC., a Delaware corporation (the “Payor”) received from
MITTAL STEEL HOLDINGS N.V., together with its successors and assigns (the “Payee”) the principal
amount of US$425,000,000. For value received, the Payor, HEREBY PROMISES TO PAY to the order of
Payee the principal amount of (i) US$325,205,660 or such lesser amount as may from time to time be
outstanding hereunder and be owing to the Payee by the Payor on April 27, 2005 (the “First Maturity
Date”) and (ii) US$100,271,230 or such lesser amount as may from time to time be outstanding
hereunder and be owing to the Payee by the Payor on May 20, 2005 (the “Second Maturity Date”, and
together with the First Maturity Date, the “Maturity Date”), provided that if any payment hereunder
is made prior to the due date thereof, such payment may be made at a an amount equal to the amount
of the payment discounted for the period from the due date to the date of payment at the rate of
3.3% per annum based on a year of 365 days.

     The Payor agrees to pay interest on all amounts of principal not paid when due under this
Promissory Note (whether at the Maturity Date or otherwise) until such amounts are paid in full, on
demand, at a rate per annum equal to 2% per annum based on a year of 365 days. The interest
accruing under this paragraph shall be immediately due and payable and shall be additional
indebtedness hereunder.

     The Payor may, upon at least three days’ notice to the Payor, prepay at any time the
outstanding aggregate principal amount of this Promissory Note in whole or in part, together with
any applicable costs and expenses referred to above.

     All sums payable by the Payor under this Note shall be made in freely transferable, cleared
and immediately available funds without any set-off, deduction or withholding unless such set-off,
deduction or withholding is required by any applicable law, judicial or administrative order, or
practice of any relevant governmental authority, or by any combination thereof. The Payee will pay
any stamp tax (or similar tax or duty) levied or imposed upon it or upon the Payee in respect of
the Payee’s execution or performance of this Promissory Note.

     The Payor shall make each payment hereunder not later than 11:00 a.m. (New York time) on the
date when due in Dollars to the Payee at its address referred to below or to the bank account
selected by the Payee from time to time in same day funds.

     In the event of an actual or deemed entry of an order for relief with respect to the Payor
under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, this
Promissory Note and all interest hereon shall automatically become and be due and payable, without
presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by the
Payor.

1

 

     No failure on the part of the Payee to exercise, and no delay in exercising, any right
hereunder or under this Promissory Note shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right preclude any other or further exercise thereof or the exercise
of any other right. The remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

     This Promissory Note and the rights of the holder hereunder may be assigned (whether in whole
or in part and whether to one or more than one persons) without the consent of the Payor; provided,
however, the Payee shall, promptly after each such assignment, give notice thereof to the Payor.

     This Promissory Note shall be governed by, and construed in accordance with, the law of the
state of New York.

     Any legal action or proceeding with respect to this Promissory Note may not be brought in the
courts of the State of New York sitting in New York City or the United States for the Southern
District of New York, and by execution and delivery of this Promissory note, the Payor consents,
for itself and in respect of its property, to the non-exclusive jurisdiction of those courts. The
Payor irrevocably waives any objection, including any objection to the laying of venue or based on
the grounds of forum non conveniens, which it may now or hereafter have to the bringing of any
action or proceeding in such jurisdiction in respect of this Promissory Note or other documents
related thereto. The Payor waives personal service of any summons complaint or other process,
which may be made by any other means permitted by the law of such state.

     The Payor hereby expressly waives any right to trial by jury of any claim, demand, action or
cause of action arising under this Promissory Note or in any way connected with or related to the
dealings of the parties hereto or any of them with respect to this Promissory Note, or the
Transactions related hereto, in each case whether now existing or hereafter arising, and whether
founded in contact or tort or otherwise; and the Payor hereby agrees and consents that any such
claim, demand, action or cause of action shall be decided by court trial without a jury, and that
any party to this Promissory Note may file an original counterpart or a copy of this with any court
as written evidence of the consent of the Payor to the waiver of its right to trial by jury.

[Remainder of Page Intentionally Left Blank; Signature Follows]

2

 

     IN WITNESS WHEREOF, the Borrower has caused this Note to be duly executed and delivered by its
officer thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	MITTAL STEEL USA ISG INC.

 	 
	 	By:  	/s/ Michael G. Rippey
 	 
	 	 	Name:  	Michael G. Rippey 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	4020 Kinross Lakes Parkway

Richfield, Ohio 44286-9000

Attention: Mr. Michael G. Rippey

 	 
	 	 	 
	 	 	 
	 	 	 
	 

3

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