Document:

EX-10.46

 Exhibit 10.46 

 
 

 
  

			
	 JAMES R. MICHAUD
	  	CLIFFS NATURAL RESOURCES INC.
	 Senior Vice President – Human Resources
	  	200 Public Square, Suite 3300, Cleveland, OH 44114-2315
	 P. 216.694.5533 james.michaud@cliffsnr.com
	  	P 216.694.5700 cliffsnaturalresources.com

 June 7, 2011 
 William R. Calfee 
 3911-3 Lander Road 
 Chagrin Falls, Ohio 44022 
 Dear Mr. Calfee: 

Due to your planned retirement on July 1, 2011, the Compensation & Organization Committee of the Board of Directors has approved a
consulting arrangement and special treatment of your Long-Term Incentive (LTI) and Management Performance Incentive (MPI) awards. 
 The
specific elements include: 
  

	 	•	 	 One year consulting agreement paid at a monthly rate of $8,000.00. 

 

	 	•	 	 The consulting agreement would be renewable after 12 months; by agreement of both you and a designated representative of Cliffs Natural Resources Inc.
(the “Company”). The parties commit to give each other at least 60 days advance written notice of intent to renew this agreement. 

  

	 	•	 	 Consulting duties include: 

  

	 	•	 	 Assistance in the development of the new commercial organization, 

 

	 	•	 	 Working on the Arcelor Mittal Issues, and 

  

	 	•	 	 Any other assignments that help add value to the organization. 

 

	 	•	 	 Your consulting duties should not prevent you from experiencing a “separation from service” for purposes of nonqualified deferred
compensation plans of the Company that are subject to the requirements of Section 409A of the Internal Revenue Code (the “Code”) because we anticipate that the level of consulting services you will be asked to perform will not exceed
20 percent of the average level of services you performed during the last few years of your employment. 

  

	 	•	 	 Upon signing the consulting agreement and prior to your planned retirement, the Company will make a one-time payment of $30,000 to you.

	 	•	 	 Your outstanding LTI awards for the 2009 - 2011 and 2010 - 2012 LTI Incentive Periods will not be prorated as a result of your retirement and the
amounts payable thereunder will be based on the degree of actual achievement and will be determined and paid in the normal course following the completion of each LTI cycle. You will not forfeit any portion of the Performance Shares or the
Restricted Share Units (RSUs) granted to you for both cycles solely as a result of your retirement, notwithstanding Section 8.4 or 10.5 of the Amended and Restated Cliffs 2007 Incentive Equity Plan, as amended, or any other provision of that
Plan or the applicable award agreements that would have required such proration or forfeiture. In effect, your Performance Shares and RSUs will be settled as though you remained employed throughout the entire incentive period and will be based on
the level of the Company’s actual performance when measured against the applicable performance objectives over the entire applicable incentive period. This additional vesting will not accelerate the date of payment of such awards, and the
Company will make such payments to you in a manner that complies with Section 409A of the Code. 

  

	 	•	 	 Your 2011 MPI Plan award will not be prorated on account of your retirement. Instead, you will be paid the 2011 MPI award as though you remained
employed through the date the 2011 MPI awards are paid to other senior executives. The Organizational MPI Grant will be calculated based upon the Company’s actual performance during 2011 when measured against the twelve performance criteria
listed in the March 8, 2011 MPI award letter from Joe Carrabba. The additional vesting and the waiving of the requirement that you be employed on the date of payment of the 2011 MPI award provided by this paragraph will not accelerate the date
of payment of the 2011 MPI award, and the Company will make such payment to you in a manner that complies with Section 409A of the Code. 

  

	 	•	 	 The Company will provide you with additional payments, if necessary, equal to the amount of any additional tax or interest incurred or assessed,
including an amount equal to the income tax on such additional payments, if the 2009-2011 LTI award, the 2010-2012 LTI award, the 2011 MPI award or any payments thereof do not comply with Section 409A of the Code. The Company shall make such
additional payments to you by the end of the calendar year following the calendar year in which you remit the additional taxes or interest. 

 Bill, please sign below to indicate your acceptance of the consulting arrangement and special treatment of your LTI and MPI awards described above. A separate agreement detailing your responsibilities and
those of the Company in your consulting role will be supplied as well. 
  

	
	Sincerely,
	
	/s/ James R. Michaud
	 James R. Michaud
 Senior
Vice President – Human Resources

  

			
		
	Accepted:	 	/s/ William R. Calfee
		 	William R. Calfee
		
	Date:	 	June 7, 2011

  
 Page 2 of 2EX-10.47

 Exhibit 10.47 
 CLEVELAND-CLIFFS INC AND SUBSIDIARIES 
 MANAGEMENT PERFORMANCE INCENTIVE
PLAN 
 SUMMARY 
 Effective January 1, 2004 
  

	1.	The Management Performance Incentive Plan (“MPI Plan”) provides a significant financial incentive for designated management employees of Cleveland-Cliffs Inc
and subsidiaries (“Company”) to maximize Company, unit, and personal performance in achieving current results and longer range objectives. The MPI Plan is designed to place a significant portion of annual compensation at risk with
performance and to provide above average compensation for outstanding performance. 

  

	2.	The MPI Plan is administered by the Company’s Compensation and Organization Committee (“Committee”) which is composed of non-employee Directors, none of
whom are eligible to participate in the MPI Plan. 

  

	3.	Participants in the MPI Plan are officers and salaried employees in designated management positions. The number of designated management positions is controlled through
the broadband classification system to maintain an efficient ratio of management to non-management employees. 

  

	4.	 Utilizing the broadband system, the management positions fall under one of six separate salary ranges (“Bands”), with each Band defining a
broad range of salaries and specifying a percentage target bonus (“Percentage Target Bonus”) applicable to all positions within that Band. The general objective is to establish salary control points based on the 50th percentile of market survey data. Position salaries are based on
national compensation data and internal organizational relationships and are periodically reviewed to maintain a compensation level which is competitive with similar positions in similar companies. 

 

	5.	The national compensation data includes determination of typical performance bonus payments for management positions at various responsibility levels. This data is used
to determine a competitive Percentage Target Bonus applicable to each Band which Percentage Target Bonus is applied to salaries within that Band to determine the participants’ respective target bonuses (“Target Bonuses”). The
Percentage Target Bonus may be revised periodically according to survey data. 

  

	6.	The Chief Executive Officer (“CEO”) approves the Bands for all management positions except Bands for officer positions, which are approved by the Committee.

	7.	Each year the Committee will approve a bonus funding structure which will be used to determine the bonus pool for the then current year. The bonus funding structure
will be based on the Company’s performance as measured by a scorecard formula (“Scorecard”) utilizing performance drivers, which reflect the criteria for attainment of objectives for that year (“Performance Drivers”) at
threshold, target and outstanding performance levels (“Performance Standards”). The Performance Drivers will be assigned specific weightings to be applied in determining final overall performance for the year (“Total Weighted
Performance”). The Performance Standards required under the Scorecard with respect to each Performance Driver will be calibrated each year based upon the current business environment with a minimum bonus opportunity at defined threshold levels
for officers and other management positions. Bonus pool funding is based upon the percentage level of the Company’s achievement of the Performance Standards set by the Scorecard for each Performance Driver (“Funding Percentages”), and
the weighting assigned to each Funding Percentage for the year. Notwithstanding the established Performance Standards for such year, and if otherwise warranted, the Committee has the discretion to increase Funding Percentages with respect to each
Performance Driver so as to have an overall result in Total Weighted Performance up to 35% of the Target Bonuses for officers and up to 50% of the Target Bonuses for other management positions. 

 

	8.	In the quarter following the close of each year, the bonus pool will be determined using the Scorecard. Such funded bonus pool can be zero and cannot exceed 200% of the
Participant’s aggregate Target Bonuses. The funded pool will be distributed to participants based on Target Bonuses and performance. Upon approval of the Committee, an additional bonus pool of 10% of target bonuses will be set aside for
distribution at the discretion of the CEO. When used, discretionary awards will reward participants whose contributions to achievement of the Company’s performance objectives exceeded all expectations. 

 

	9.	At the discretion of the Committee and subject to the availability of authorized stock, bonus payments to participants may be made in cash or shares of the
Company’s stock or a combination thereof, and restrictions may be placed on the vesting of any stock award. 

  

	10.	Generally, bonus payments to participants will be made by the end of March for the prior calendar year after audited financial results are determined.

  

	11.	Following designation as a participant in the MPI Plan and prior to the payment of a bonus, neither the participant nor the estate or anyone claiming through such
participant has any right to share in the bonus pool for such year. However, the MPI Plan provides, at the sole discretion of the Committee and CEO, that awards may be made to a participant whose employment terminates during the calendar year or to
the participant’s beneficiaries when circumstances warrant favorable consideration for an award for such year. 

	12.	A participant has no right, title or interest in any assets of the Company and subsidiaries by reason of any award made pursuant to this MPI Plan and such award
reflects only an unsecured contractual obligation to make the payment to the participant of the approved award under the terms and conditions of the MPI Plan. 

 

	13.	The Board of Directors may modify or terminate this MPI Plan at any time.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00199-of-00352.parquet"}]]