Document:

EX-10.1

 

Exhibit 10.1

SECOND AMENDMENT AGREEMENT

     This SECOND AMENDMENT AGREEMENT (this “Amendment”) is made as of the 25th day of
April, 2007 among:

     (a) THE J. M. SMUCKER COMPANY, an Ohio corporation (“US Borrower”);

     (b) SMUCKER FOODS OF CANADA CO., a Nova Scotia corporation (successor
by amalgamation to J. M. Smucker (Canada) Inc.) (“Canadian Borrower” and, together with US
Borrower, collectively, “Borrowers” and, individually, each a “Borrower”);

     (c) the Lenders, as defined in the Credit Agreement, as hereinafter defined;

     (d) KEYBANK NATIONAL ASSOCIATION, as the lead arranger and administrative agent for the
Lenders under the Credit Agreement (“Agent”); and

     (e) BANK OF MONTREAL, as the Canadian funding agent and syndication agent under the
Credit Agreement (the “Canadian Funding Agent”).

     WHEREAS, Borrowers, Lenders and Agent are parties to that certain Credit Agreement, dated as
of June 18, 2004, that provides, among other things, for loans and letters of credit aggregating
One Hundred Eighty Million Dollars ($180,000,000), all upon certain terms and conditions (as
amended and as the same may from time to time be further amended, restated or otherwise modified,
the “Credit Agreement”);

     WHEREAS, Borrowers, Agent and the Lenders desire to amend the Credit Agreement to modify
certain provisions thereof and add certain provisions thereto;

     WHEREAS, each capitalized term used herein and defined in the Credit Agreement, but not
otherwise defined herein, shall have the meaning given such term in the Credit Agreement; and

     WHEREAS, unless otherwise specifically provided herein, the provisions of the Credit Agreement
revised herein are amended effective as of the date of this Amendment;

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein and for
other valuable consideration, Borrowers, Agent and the Lenders agree as follows:

     1. Amendment to Definitions. Article I of the Credit Agreement is hereby amended to
delete the definitions of “Change in Control”, “Maximum Amount”, “Maximum Canadian Revolving
Amount”, “Maximum US Revolving Amount”, “Overall Commitment Percentage”, and “Required Lenders”
therefrom and to insert in place thereof, respectively, the following:

          “Change in Control” shall mean:

 

 

     (a) the acquisition of, or, if earlier, the shareholder or director approval of the
acquisition of, ownership or voting control, directly or indirectly, beneficially or of
record, on or after the Closing Date, by any Person or group (within the meaning of Rule
13d-3 of the SEC under the 1934 Act, as then in effect), of shares representing more than
fifty percent (50%) of the aggregate ordinary Voting Power represented by the issued and
outstanding capital stock of US Borrower; provided that the foregoing restriction shall not
apply to acquisitions of capital stock by the Smucker Family so long as the acquisition by
the Smucker Family of such Voting Power shall not result, directly or indirectly, in a
“going private transaction” within the meaning of the 1934 Act;

     (b) the occupation of a majority of the seats (other than vacant seats) on the board of
directors of US Borrower by Persons who were neither (i) nominated by the board of directors
of US Borrower nor (ii) appointed by directors so nominated;

     (c) the sale or transfer of all or substantially all of the assets of US Borrower, in a
single transaction or a series of related transactions, to any person (within the meaning of
Rule 13d-3 of the SEC under the Securities Exchange Act of 1934, as in effect on the Closing
Date) or related persons constituting a group (within the meaning of Rule 13d-3 of the SEC
under the Securities Exchange Act of 1934, as in effect on the Closing Date); or

     (d) the occurrence of a change in control, or other similar provision, as defined in
any Material Indebtedness Agreement, the result of which is to cause such Indebtedness to
become due prior to its stated maturity.

          “Maximum Amount” shall mean:

     (a) for each US Lender, the amount set forth opposite such US Lender’s name
under the column headed “Maximum Amount” as set forth on Schedule 1 hereto,
subject to decreases determined pursuant to Section 2.9(d) hereof, reallocations
determined pursuant to Section 2.15 hereof and assignments of interests pursuant to
Section 10.10 hereof; and

     (b) for each Canadian Lender, the amount set forth opposite such Canadian
Lender’s name under the column headed “Maximum Amount” as set forth on Schedule
1 hereto, subject to decreases determined pursuant to Section 2.9(d) hereof,
reallocations determined pursuant to Section 2.15 hereof and assignments of
interests pursuant to Section 10.10 hereof.

     “Maximum Canadian Revolving Amount” shall mean the CAD Equivalent of Zero Dollars ($0),
as such amount may be reduced pursuant to Section 2.9(d) hereof or reallocated pursuant to
Section 2.15 hereof.

     “Maximum US Revolving Amount” shall mean One Hundred Eighty Million Dollars
($180,000,000), as such amount may be reduced pursuant to Section 2.9(d) hereof or
reallocated pursuant to Section 2.15 hereof.

2

 

      “Overall Commitment Percentage” shall mean (a) with respect to a US Lender, such US
Lender’s percentage of the Total Commitment Amount based upon such US Lender’s Maximum
Amount of the Total Commitment Amount, and (b) with respect to a Canadian Lender, such
Canadian Lender’s percentage of the Total Commitment Amount based upon such Canadian
Lender’s Maximum Amount of the Total Commitment Amount.

     “Required Lenders” shall mean, at any time, the holders of at least fifty-one percent
(51%) of the aggregate sum of the Lender Overall Basis of all of the Lenders, as it may from
time to time be set forth in Schedule 1 hereto.

     2. Addition to Definitions. Article I of the Credit Agreement is hereby amended to
add the following new definitions thereto:

     “Applicable Maximum Canadian Revolving Amount” shall mean, for each Combined Lender,
the amount set forth opposite such Combined Lender’s name under the column headed “Canadian
Revolving Credit Commitment Amount” as set forth on Schedule 1 hereto, subject to
decreases determined pursuant to Section 2.9(d) hereof, reallocations determined pursuant to
Section 2.15 hereof and assignments of interests pursuant to Section 10.10 hereof.

     “Applicable Maximum US Revolving Amount” shall mean, for each Combined Lender, the
amount set forth opposite such Combined Lender’s name under the column headed “US Revolving
Credit Commitment Amount” as set forth on Schedule 1 hereto, subject to decreases
determined pursuant to Section 2.9(d) hereof, reallocations determined pursuant to Section
2.15 hereof and assignments of interests pursuant to Section 10.10 hereof.

     “Balanced Combined Lender” shall mean a Combined Lender whose aggregate US Revolving
Credit Commitment and Dormant US Revolving Credit Commitment equals the aggregate of its
Canadian Revolving Credit Commitment and Dormant Canadian Revolving Credit Commitment.

     “Combined Lender” shall mean (a) a US Lender that is also a Canadian Lender, through a
“Canadian (or city or province thereof) branch” or a Canadian affiliate of such US Lender,
or (b) a Canadian Lender that is also a US Lender, through a “United States (or city or
state thereof) branch” or a United States affiliate of such Canadian Lender.

     “Dormant Canadian Commitment” shall mean the obligation hereunder of certain Canadian
Lenders to have their respective Dormant Canadian Revolving Credit Commitments available to
Canadian Borrower for the purposes of increasing, pursuant to Section 2.15 hereof, the
Canadian Commitment, during the Commitment Period, by an amount up to the Dormant Total
Canadian Amount.

3

 

     “Dormant Canadian Revolving Credit Commitment” shall mean, for each Canadian Lender,
the amount set forth opposite such Canadian Lender’s name under the column headed “Dormant
Revolving Credit Canadian Commitment” as set forth on Schedule 1 hereto, as the same
may be revised from time to time pursuant to Sections 2.9(d), 2.15 and 10.10 hereof.

     “Dormant Total Canadian Amount” shall mean the amount set forth under the row titled
“Dormant Canadian Amount” as set forth on Schedule 1 hereto, as the same may be
revised from time to time pursuant to Sections 2.9, 2.15 and 10.10 hereof.

     “Dormant Total US Amount” shall mean the amount set forth under the row titled “Dormant
US Amount” as set forth on Schedule 1 hereto, as the same may be revised from time
to time pursuant to Sections 2.9, 2.15 and 10.10 hereof.

     “Dormant US Commitment” shall mean the obligation hereunder of certain US Lenders to
have their respective Dormant US Revolving Credit Commitments available to US Borrower for
the purposes of increasing, pursuant to Section 2.15 hereof, the US Commitment, during the
Commitment Period, by an amount up to the Dormant Total US Amount.

     “Dormant US Revolving Credit Commitment” shall mean, for each US Lender, the amount set
forth opposite such US Lender’s name under the column headed “Dormant US Revolving Credit
Commitment” as set forth on Schedule 1 hereto, as the same may be revised from time
to time pursuant to Sections 2.9, 2.15 and 10.10 hereof.

     “Lender Overall Basis” shall mean, at any time, for any Lender (which for purposes of
this definition includes any affiliate or branch thereof that is also a Lender under this
Agreement), the higher of, to the extent applicable, (a) the sum of such Lender’s US
Revolving Credit Commitment and Dormant US Revolving Credit Commitment, or (b) the sum of
such Lender’s Canadian Revolving Credit Commitment and Dormant Canadian Revolving Credit
Commitment; provided that, for any Lender that is a Balanced Combined Lender, the Lender
Overall Basis shall be either subpart (a) or (b) above (since (a) and (b) above would be the
same). For clarification purposes, Schedule 1 hereto sets forth the “Lender Overall
Basis” for each Lender.

     “Unbalanced Combined Lender” shall mean a Combined Lender whose aggregate US Revolving
Credit Commitment and Dormant US Revolving Credit Commitment does not equal the aggregate of
its Canadian Revolving Credit Commitment and Dormant Canadian Revolving Credit Commitment.

     “Ultimate Amount” shall mean One Hundred Eighty Million Dollars ($180,000,000) (or the
CAD Equivalent thereof), as such amount may be reduced pursuant to Section 2.9(d) hereof.

     3. Addition to US Revolving Credit. Section 2.2 of the Credit Agreement is hereby
amended to add the following new subsection (d) at the end thereto:

4

 

     (d) US Lenders That Are Canadian Lenders. To the extent that a US Lender has
an affiliate or branch that is a Canadian Lender, such US Lender together with its Canadian
affiliate or branch shall be a Combined Lender and shall have separate commitments under the
Commitment. To the extent that a Revolving Loan is made under the US Commitment, it will be
made by the US Lender and, to the extent that a Revolving Loan is made under the Canadian
Commitment, it will be made by the Canadian affiliate or branch of such US Lender.
Accordingly, (i) such US Lender (and not the Canadian affiliate or branch) will be the
entity that shares the risk described in subsections (b) and (c) of this Section 2.2 with
respect to the Letters of Credit and US Swing Loans that are part of the US Commitment, and
(ii) the Canadian affiliate or branch of such US Lender will be the entity that shares the
risk described in subsection (b) of Section 2.3 hereof with respect to the Canadian Swing
Loans that are part of the Canadian Commitment.

     4. Addition to Canadian Revolving Credit. Section 2.3 of the Credit Agreement is
hereby amended to add the following new subsection (c) at the end thereto:

     (c) Canadian Lenders That Are US Lenders. To the extent that a Canadian Lender
has an affiliate or branch that is a US Lender, such Canadian Lender together with its US
affiliate or branch shall be a Combined Lender and shall have separate commitments under the
Commitment. To the extent that a Revolving Loan is made under the Canadian Commitment, it
will be made by the Canadian Lender and, to the extent that a Revolving Loan is made under
the US Commitment, it will be made by the US affiliate or branch of such Canadian Lender.
Accordingly, (i) such Canadian Lender (and not the US affiliate or branch) will be the
entity that shares the risk described in subsection (b) of this Section 2.3 with respect to
the Canadian Swing Loans that are part of the Canadian Commitment, and (i) the US affiliate
or branch of such Canadian Lender will be the entity that shares the risk described in
subsections (b) and (c) of Section 2.2 hereof with respect to the Letters of Credit and US
Swing Loans that are part of the US Commitment.

     5. Amendment to Facility Fees. Section 2.9 of the Credit Agreement is hereby amended
to delete subpart (a) therefrom and to insert in place thereof the following:

     (a) Facility Fee. Borrowers shall pay to Agent (as provided below), for the
account of each Lender, as a consideration for the credit facilities provided by the Lenders
under this Agreement, a facility fee from the Second Amendment Effective Date to and
including the last day of the Commitment Period, payable quarterly, at a rate per annum
equal to (i) the Applicable Facility Fee Rate in effect on the payment date, times (ii) the
average daily Lender Overall Basis for such Lender in effect during such quarter. The
facility fee shall be payable in arrears, on July 31, 2007 and on each Regularly
Scheduled Payment Date thereafter, and on the last day of the Commitment Period. In order
to minimize any possible adverse tax consequences, Borrowers shall have the option to
designate which portion of the facility fees is due and payable from US Borrower and which
portion is due and payable from Canadian Borrower. In no event

5

 

shall Canadian Borrower be
required to make payments under this subsection on behalf of US Borrower, or with respect to
the US Commitment.

     6. Amendment to Reduction of Commitment. Section 2.9(d) of the Credit Agreement is
hereby amended to delete subpart (iii) therefrom and to insert in place thereof the following:

     (iii) Generally. If Borrowers reduce in whole the Commitment of the Lenders,
on the effective date of such reduction (Borrowers having prepaid in full the unpaid
principal balance, if any, of the Loans, together with all interest and facility and other
fees accrued and unpaid), all of the Notes, if Notes have been issued, shall be delivered to
Agent marked “Canceled” and Agent shall redeliver such Notes to Borrowers. Any partial
reduction in the Total Commitment Amount shall be effective during the remainder of the
Commitment Period and shall result in a corresponding reduction of the Ultimate Amount.
Notwithstanding anything in this Section to the contrary, at any time that there shall be a
permanent reduction in the US Commitment or the Canadian Commitment pursuant to subparts (i)
and (ii) above, the Dormant US Commitment and the Dormant Canadian Commitment (as
applicable) shall be automatically decreased so that (A) the amount of the Dormant US
Commitment does not exceed the amount of the resulting Canadian Commitment, and (B) the
amount of the Dormant Canadian Commitment does not exceed the amount of the resulting US
Commitment.

     7. Amendment to Amount and Terms of Credit. Article II of the Credit Agreement is
hereby amended to add the following new Section 2.15 at the end thereto:

     Section 2.15. Reallocation of US and Canadian Revolving Commitments.

     (a) Increase in US Commitment and Decrease in Canadian Commitment. So long as
no Default or Event of Default exists, Borrowers shall have the right, with three Business
Days prior written notice to Agent and Canadian Funding Agent, to increase the Maximum US
Revolving Amount up to the Ultimate Amount. Each such increase shall:

     (i) be in an amount of at least Ten Million Dollars ($10,000,000), increased by
increments of Five Million Dollars ($5,000,000) (but in no event greater than the
Dormant Total US Amount effective immediately prior to such increase);

     (ii) result in a decrease of the Maximum Canadian Revolving Amount by an amount
equal to such increase by (A) first, proportionally decreasing the Applicable
Maximum Canadian Revolving Amount of each Canadian Lender that is not a Combined
Lender, (B) second, if applicable, proportionally (based on their respective Dormant
US Revolving Credit Commitments) decreasing the Applicable Maximum Canadian
Revolving Amount of each Unbalanced Combined Lender, and (C) third, if applicable, proportionally decreasing the
Applicable Maximum Canadian Revolving Amount of each Balanced Combined Lender;

6

 

     (iii) (1) first, proportionally increase the Applicable Maximum US Revolving
Amount of each US Lender that is not a Combined Lender, (2) second, if applicable,
proportionally (based on their respective Dormant US Revolving Credit Commitments)
increase the Applicable Maximum US Revolving Amount of each Unbalanced Combined
Lender, and (3) third, if applicable, proportionally increase the Applicable Maximum
US Revolving Amount of each Balanced Combined Lender; and

     (iv) proportionately (y) increase such Canadian Lender’s Dormant Canadian
Commitment, and (z) decrease such US Lender’s Dormant US Commitment.

     (b) Increase in Canadian Commitment and Decrease in US Commitment. So long as
no Default or Event of Default exists, Borrowers shall have the right, with three Business
Days prior written notice to Agent and Canadian Funding Agent, to increase the Maximum
Canadian Revolving Amount up to the Ultimate Amount. Each such increase shall:

     (i) be in an amount of at least Ten Million Dollars ($10,000,000), increased by
increments of Five Million Dollars ($5,000,000) (but in no event greater than the
Dormant Total Canadian Amount effective immediately prior to such increase);

     (ii) result in a decrease of the Maximum US Revolving Amount by an amount equal
to such increase by (A) first, proportionally decreasing the Applicable Maximum US
Revolving Amount of each US Lender that is a Balanced Combined Lender, (B) second,
if applicable, proportionally (based on their respective Dormant Canadian Revolving
Credit Commitment) decreasing the Applicable Maximum US Revolving Amount of each
Unbalanced Combined Lender, and (C) third, if applicable, proportionally decreasing
the Applicable Maximum US Revolving Amount of each US Lender that is not a Combined
Lender;

     (iii) (1) first, proportionally increase the Applicable Maximum Canadian
Revolving Amount of each Canadian Lender that is a Balanced Combined Lender, (2)
second, if applicable, proportionally (based on their respective Dormant Canadian
Revolving Credit Commitment) increase the Applicable Maximum Canadian Revolving
Amount of each Unbalanced Combined Lender, and (3) third, if applicable,
proportionally increase the Applicable Maximum Canadian Revolving Amount of each
Canadian Lender that is not a Combined Lender; and

     (iv) proportionately (y) increase such US Lender’s Dormant US Commitment, and
(z) decrease such Canadian Lender’s Dormant Canadian Commitment.

7

 

     (c) Generally. In connection with any increase set forth in subparts (a) and
(b) above, (i) Schedule 1 hereto shall be automatically amended, without further
action, to reflect the result of any such increase (provided that Agent shall provide to
Borrowers and each Lender a revised Schedule 1 to this Agreement, including revised
Applicable Commitment Percentages for each of the Lenders, if appropriate, which Schedule 1
may be provided at the time of such increase or thereafter, and shall be effective as of the
date of such increase); and (ii) Borrowers shall execute and deliver to Agent and the
Lenders such replacement or additional Revolving Credit Notes as shall be required by Agent
(to replace or supplement the Notes previously requested by the Combined Lenders). On the
date of each such increase, the Lenders shall make adjustments among themselves with respect
to the Revolving Loans then outstanding and amounts of principal, interest, facility fees,
and other amounts paid or payable with respect thereto as shall be necessary, in the opinion
of Agent, in order to reallocate among such Lenders such outstanding amounts, based on the
revised Applicable Commitment Percentages. Borrowers hereby agree to indemnify and to hold
each Lender harmless for any amount payable under Article III hereof as a result of a
prepayment of a Fixed Rate Loan pursuant to a reallocation of Commitments under this Section
2.15.

     8. Amendment to Amendments, Consents. Section 10.3 of the Credit Agreement is hereby
amended to delete subpart (a) therefrom, and to insert in place thereof the following:

     (a) except with respect to increases pursuant to Section 2.15 hereof, any increase in
the Commitment, the US Commitment or the Canadian Commitment,

     9. Amendment to Schedules. The Credit Agreement is hereby amended to delete
Schedule 1 (Commitment of Lenders) therefrom, and to insert in place thereof, a new
Schedule 1 in the form of Schedule 1 attached hereto.

     10. Closing Deliveries. Concurrently with the execution of this Amendment,

     (a) Borrowers shall:

     (i) deliver to Agent, for delivery to each US Lender that is also a Combined Lender and
that has requested a Note, a replacement Note that reflects the full amount of its US
Commitment;

     (ii) cause each Guarantor of Payment to execute the attached Acknowledgment and
Agreement; and

     (iii) pay all legal fees and expenses of Agent in connection with this Amendment.

     (b) Agent and Canadian Funding Agent shall execute an Amended and Restated Lender Agreement
and, in connection therewith, each Lender authorizes Agent and Canadian Funding Agent to execute
such agreement on its behalf, and agrees to be bound thereby;

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     11. Representations and Warranties. Each Borrower hereby represents and warrants to
Agent and the Lenders that (a) such Borrower has the legal power and authority to execute and
deliver this Amendment; (b) the officers executing this Amendment have been duly authorized to
execute and deliver the same and bind such Borrower with respect to the provisions hereof; (c) the
execution and delivery hereof by such Borrower and the performance and observance by such Borrower
of the provisions hereof do not violate or conflict with the organizational agreements of such
Borrower or any law applicable to such Borrower or result in a breach of any provision of or
constitute a default under any other agreement, instrument or document binding upon or enforceable
against such Borrower; (d) no Default or Event of Default exists under the Credit Agreement, nor
will any occur immediately after the execution and delivery of this Amendment or by the performance
or observance of any provision hereof; (e) such Borrower is not aware of any claim or offset
against, or defense or counterclaim to, such Borrower’s obligations or liabilities under the Credit
Agreement or any Related Writing; and (f) this Amendment constitutes a valid and binding obligation
of such Borrower in every respect, enforceable in accordance with its terms.

     12. References to Credit Agreement. Each reference that is made in the Credit
Agreement or any Related Writing shall hereafter be construed as a reference to the Credit
Agreement as amended hereby. Except as herein otherwise specifically provided, all terms and
provisions of the Credit Agreement are confirmed and ratified and shall remain in full force and
effect and be unaffected hereby. This Amendment is a Related Writing. The notice address for Bank
of Montreal, Chicago Branch set forth on the signature pages of this Amendment shall be the notice
address of Bank of Montreal, Chicago Branch for purposes of Section 10.4 of the Credit Agreement.

     13. Waiver. Each Borrower, by signing below, hereby waives and releases Agent and
each of the Lenders, and their respective directors, officers, employees, attorneys, affiliates and
subsidiaries, from any and all claims, offsets, defenses and counterclaims of which such Borrower
is aware, such waiver and release being with full knowledge and understanding of the circumstances
and effect thereof and after having consulted legal counsel with respect thereto.

     14. Counterparts. This Amendment may be executed in any number of counterparts, by
different parties hereto in separate counterparts and by facsimile signature, each of which when so
executed and delivered shall be deemed to be an original and all of which taken together shall
constitute but one and the same agreement.

     15. Headings. The headings, captions and arrangements used in this Amendment are for
convenience only and shall not affect the interpretation of this Amendment.

     16. Severability. Any term or provision of this Amendment held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder
of this Amendment and the effect thereof shall be confined to the term or provision so held to be
invalid or unenforceable.

     17. Governing Law. The rights and obligations of all parties hereto shall be governed
by the laws of the State of Ohio, without regard to principles of conflicts of laws.

9

 

     JURY TRIAL WAIVER. BORROWERS, THE LENDERS AND AGENT, TO THE EXTENT PERMITTED BY
LAW, EACH HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER
SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG BORROWERS, THE LENDERS AND AGENT, OR ANY THEREOF,
ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG
THEM IN CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT
EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

     IN WITNESS WHEREOF, the parties have executed and delivered this Amendment as of the date
first set forth above.

	 	 	 	 	 
	 	THE J. M. SMUCKER COMPANY

 	 
	 	By: 	 /s/ Mark
R. Belgya 	 
	 	 	Name:  	 Mark
R. Belgya	 
	 	 	Title: 	 Treasurer 	 
	 
	 	SMUCKER FOODS OF CANADA CO.

 	 
	 	By:  	 /s/ Mark
R. Belgya	 
	 	 	Name:   	 Mark
R. Belgya	 
	 	 	Title: 	 Treasurer 	 
	 
	 	KEYBANK NATIONAL ASSOCIATION,

   as Agent and as a Lender

 	 
	 	By:  	 /s/ Brendan
A. Lawlor	 
	 	 	Name:   	 Brendan
A. Lawlor 	 
	 	 	Title:  	 Senior
Vice President	 
	 
	 	BANK OF MONTREAL,

   as Canadian Funding Agent, Syndication

   Agent and as a Lender

 	 
	 	By:  	 /s/ Ben
Ciallella	 
	 	 	Name:  	 Ben
Ciallella 	 
	 	 	Title:  	 Vice
President	 
	 

Signature Page 1 of 2 to

Second Amendment Agreement

 

 

	 	 	 	 	 
	 	FIFTH THIRD BANK

 	 
	 	By:  	 /s/ Martin
H. McGinty	 
	 	 	Name:  	 Martin
H. McGinty 	 
	 	 	Title:  	 Vice
President	 
	 
	Address: 115 S. LaSalle Street 
                 Chicago, IL 60603	BANK OF MONTREAL, Chicago branch

 	 
	                 Attn:
Food Group
	By:  	
 /s/ Betzaida Erdelyi	 
	 	 	Name:  	 Betzaida Erdelyi	 
	 	 	Title:  	 Director	 
	 
	 	FIFTH THIRD BANK, Toronto branch,

   a branch of an Ohio banking corporation

 	 
	 	By:  	 /s/ Jeremaih
A. Hynes	 
	 	 	Name:  	 Jeremaih
A. Hynes 	 
	 	 	Title:  	 Vice
President and Principal Officer	 
	 

Signature Page 2 of 2 to

Second Amendment Agreement

 

 

ACKNOWLEDGMENT AND AGREEMENT

     The undersigned consent and agree to and acknowledge the terms of the foregoing Second
Amendment Agreement dated as of April 25, 2007. The undersigned further agree that the obligations
of the undersigned pursuant to the Guaranty of Payment executed by the undersigned shall remain in
full force and effect and be unaffected hereby.

     The undersigned hereby waive and release Agent and the Lenders and their respective directors,
officers, employees, attorneys, affiliates and subsidiaries from any and all claims, offsets,
defenses and counterclaims of which the undersigned are aware, such waiver and release being with
full knowledge and understanding of the circumstances and effect thereof and after having consulted
legal counsel with respect thereto.

     JURY TRIAL WAIVER. THE UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVE ANY
RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR
OTHERWISE, AMONG BORROWERS, AGENT, THE LENDERS AND THE UNDERSIGNED, OR ANY THEREOF, ARISING OUT OF,
IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN
CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR
DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

	 	 	 	 	 	 	 	 	 	 	 
	THE J. M. SMUCKER COMPANY	 	J.M. SMUCKERS LLC

   (f/k/a Smucker-IMC, Inc.)
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/
 	 	Mark
R. Belgya	 	By:	 	/s/ 	 	Mark
R. Belgya
	 

	 	Name:
	 	Mark
R. Belgya 	 	 	 	Name:	 	Mark
R. Belgya 
	 

	 	Title:
	 	Treasurer 	 	 	 	Title:	 	Treasurer 

Signature Page to

Acknowledgment and Agreement

 

 

SCHEDULE 1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	US REVOLVING	 	 	 	 
	 	 	US REVOLVING CREDIT	 	CREDIT	 	DORMANT US	 	 
	 	 	COMMITMENT	 	COMMITMENT	 	REVOLVING CREDIT	 	 
	US LENDERS	 	PERCENTAGE	 	AMOUNT	 	COMMITMENT	 	MAXIMUM AMOUNT
	KeyBank National
Association
	 	 	41.67	%	 	$	75,000,000	 	 	$	0	 	 	$	75,000,000	 
	Bank of Montreal,
Chicago Branch
	 	 	36.11	%	 	$	65,000,000	 	 	$	0	 	 	$	65,000,000	 
	Fifth Third Bank
	 	 	22.22	%	 	$	40,000,000	 	 	$	0	 	 	$	40,000,000	 
	 
	 	 	100.00	%	 	 	 	 	 	 	 	 	 	 	 	 
	Dormant Total US Amount
	 	 	 	 	 	 	 	 	 	$	0	 	 	 	 	 
	Maximum US Revolving
Amount
	 	 	 	 	 	$	180,000,000	 	 	 	 	 	 	$	180,000,000	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	CANADIAN REVOLVING	 	 	 	 
	 	 	CANADIAN REVOLVING	 	CREDIT	 	DORMANT CANADIAN	 	 
	 	 	CREDIT COMMITMENT	 	COMMITMENT	 	REVOLVING CREDIT	 	 
	CANADIAN LENDERS	 	PERCENTAGE	 	AMOUNT	 	COMMITMENT	 	MAXIMUM AMOUNT
	Bank of Montreal
	 	 	0.00	%	 	$	0	 	 	$	65,000,000	 	 	$	0	 
	Fifth Third Bank,
Toronto branch
	 	 	0.00	%	 	$	0	 	 	$	10,000,000	 	 	$	0	 
	 
	 	 	0.00	%	 	 	 	 	 	 	 	 	 	 	 	 
	Dormant Total
Canadian Amount
	 	 	 	 	 	 	 	 	 	$	75,000,000	 	 	 	 	 
	Maximum Canadian
Revolving Amount
	 	 	 	 	 	$	0	 	 	 	 	 	 	$	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL COMMITMENT AMOUNT
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	180,000,000	 

	 	 	 	 	 
	LENDER 	 	LENDER OVERALL BASIS
	KeyBank National Association
	 	$	75,000,000	 
	Bank of Montreal (includes the Chicago branch)
	 	$	65,000,000	 
	Fifth Third Bank (includes the Toronto branch)
	 	$	40,000,000	 

S-1EX-10.12.08

 

Exhibit 10.12(h)

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

January 8, 2007

     This Amended and Restated Employment Agreement (this “Agreement”) is made as of January 8,
2007, by and between JAMES P. BOUCHARD, currently residing at 3 Beaver Street, Sewickley, PA
15143, and WHEELING-PITTSBURGH CORPORATION, a corporation organized under the laws of the State of
Delaware (the “Company”). This Agreement supersedes and replaces that certain Employment Agreement
between the Company and Executive effective as of December 19, 2006 (the “Effective Date”).

     In consideration of the covenants and conditions herein contained and other good and valuable
consideration, receipt of which is hereby acknowledged by each party, the parties hereby agree as
follows:

1. EMPLOYMENT.

The Company shall employ the Executive commencing on the Effective Date, and the Executive hereby
accepts such employment, all upon the terms and conditions set forth herein.

2. DUTIES AND AUTHORITY.

     (a) POSITION. Executive shall serve as the Chief Executive Officer of the Company,
with those authorities, duties and responsibilities customary to that position and such other
authorities, duties and responsibilities as the Board of Directors of the Company (the “Board”) may
reasonably assign the Executive from time to time. The Executive shall use his best efforts,
including the highest standards of professional competence and integrity, and shall devote a
reasonable portion of his business time and effort, in and to his employment hereunder, and shall
not engage in any other business activity which would conflict with the rendition of his services
hereunder, except that the Executive may retain his position with Esmark Incorporated as a
director, Chairman and CEO and, if approved by the Board, may hold directorships or related
positions in charitable, educational or not-for-profit organizations, or directorships in business
organizations, including and make passive investments, which do not unreasonably interfere with the
Executive’s day-to-day acquittal of his responsibilities to the Company.

     (b) BOARD MEMBERSHIP. Executive shall be nominated for election as a director of the
Company by the shareholders at each annual meeting during the term of this Agreement (or at each
annual meeting at which his then current term as a director would otherwise expire), and if so
elected by the shareholders, Executive shall serve as a member of the Board. The Executive
acknowledges that the election of directors is the prerogative of the shareholders, acting in their
sole discretion and, accordingly, that the failure of the shareholders to approve his nomination to
membership on the Board for any term does not constitute a violation of this Agreement. In the
event the Executive is elected as a member of the Board, any determination or action required of or
permitted to the Board under this Agreement shall exclude the vote of the Executive. In addition,
in

1

 

the event the Executive is elected as a member of the Board, the Executive shall recuse
himself from any such Board’s discussion pertaining to the terms and conditions of his employment
by the Company, whether pursuant to this Agreement or otherwise.

3. TERM.

     (a) GENERAL. This Agreement shall have effect as of the Effective Date, and shall
remain in effect until November 30, 2007 subject to earlier termination under Section 3(b) or
Section 5 or extension as described below. The period from the Effective Date until this Agreement
shall have expired in accordance with this Section or been terminated in accordance with Section 5
is hereafter referred to as “the term hereof” or “the term of this Agreement.” The term hereof
shall be extended automatically for an additional year as of December 1, 2007 and as of each
subsequent annual anniversary of such date (each such extension date is referred to herein as a
“Renewal Date”) unless at least one hundred twenty (120) days prior to any such Renewal Date either
party shall have given notice to the other party that the term of this Agreement shall not be so
extended.

     (b) EFFECT OF POSSIBLE MERGERS. The Company has entered into a Merger Agreement dated
October 24, 2006 with Companhia Siderurgica Nacional (CSN). In addition, a merger with Esmark
Incorporated has been proposed. Notwithstanding the foregoing, if either of these proposed mergers
is consummated, the Agreement will terminate 30 days after completion of the merger.

     (c) SURVIVAL OF CERTAIN PROVISIONS. Notwithstanding anything else herein contained,
the provisions of Sections 4 through 7 hereof shall survive the termination of this Agreement and
of the Executive’s employment hereunder.

4. COMPENSATION.

     In return for his services hereunder, the Executive shall be entitled to (i) the Salary as
specified below, (ii) bonuses, to the extent provided below, (iii) long-term incentive, and (iv)
certain fringe benefits, to the extent provided below.

     (a) SALARY. Starting with the Effective Date, the Company shall pay the Executive, in
accordance with the Company’s customary payroll practices for executives, salary at an annual rate
of $750,000, subject to annual review and upward adjustment at the determination of the
Compensation Committee of the Board (as so adjusted, the Executive’s “Salary”). The payments for
services through the end of 2008 shall be made by the grant of shares of Company common stock from
the 2003 Management Incentive Stock Plan or a successor plan based on the closing price of the
Company common stock on the day prior to the grant date (net of required tax withholdings). On
January 9, 2007, restricted stock will be granted for the 24-month period from January 1, 2007
through December 31, 2008 based on a salary at an annual rate of $750,000 for the entire 24-month
period. The restrictions shall lapse in equal portions on the first business day after the end of
each calendar quarter in arrears provided that the Executive is employed on the last day of the
calendar quarter. In addition, a pro rata lapse of restrictions shall be made for the time period
between the last lapse date and the date of the involuntary termination of the employment of the
Executive without Cause or termination by the Executive for Good Reason (as defined in Section
5(b)). This grant shall not preclude a later upward adjustment of the Salary. Executive will be
taxed on

2

 

his Salary as such shares of restricted stock vest and must arrange to pay the Company’s tax
withholding obligations on this income by either (i) surrendering shares of Company common stock
(the Company shall then credit the fair market value of such surrendered shares, determined as of
the date when taxes otherwise would have been withheld in cash, against such withholding taxes), or
(ii) reimbursing the Company in cash for the amount of such withholding taxes.

     (b) BONUS. For the period from the Effective Date until December 31, 2007, the
Executive will not be eligible to receive a bonus. In subsequent years, at the discretion of the
Compensation Committee, the Executive may participate in the Company’s existing short-term
incentive plan for executives, as the same may be amended from time to time by the Board. The Board
may also award other bonuses from time to time in its discretion.

     (c) LONG-TERM INCENTIVES. Within 30 days of the Effective Date, the Company shall make
an initial equity grant to the Executive as stated below. In all subsequent years, the Executive
shall be awarded such equity incentive awards as the Board or the Compensation Committee shall
determine from time to time in their discretion. The terms of the initial equity grant shall be as
stated below with additional terms consistent with Company practices:

     Number of restricted shares: 30,000

     Vesting schedule for restricted shares: Vest 1/3 on each of the first three anniversaries of
the Effective Date.

     Executive may be eligible to participate in other long-term incentive plans and programs as
the Board or the Compensation Committee may deem appropriate from time to time.

     (d) FRINGE BENEFITS. The Executive will be eligible for and entitled to participate in
other benefits maintained by the Company for its senior executive officers, as such benefits may be
modified from time to time for all such employees, such as its medical, dental, 401(k), accident,
disability, and life insurance benefits, on a basis not less favorable than that applicable to
other executives of the Company. Any such participation shall be subject to (i) the terms of the
applicable plan documents, (ii) generally applicable policies of the Company and (iii) the
discretion of the Board or any administrative or other committee provided for in or contemplated by
such plan, exercised in accordance with applicable law. The Executive will also be entitled to the
following:

          (i) Subject to the Company’s standard policies, four (4) weeks of vacation per calendar year
(or any longer period as shall be provided under the Company’s general vacation policies), without
reduction in Salary, to be taken at such times and intervals as shall be determined by the
Executive subject to the reasonable business needs of the Company and to Company policies as in
effect from time.

          (ii) Appropriate office space, administrative support, e.g., secretarial assistance, and such
other facilities and services as are suitable to the Executive’s position and adequate for the
performance of the Executive’s duties.

3

 

          (iii) The use of a company car. The Company shall be responsible for the purchase price or
lease payment and shall pay or reimburse all of the Executive’s expenses for gasoline for use of
the Company car, and maintenance and insurance of his Company car, subject to such reasonable
reporting requirements as may be specified by the Company and/or the Internal Revenue Service. The
Executive shall keep and submit records of his business and personal use of the automobile. The
Executive acknowledges that his personal use of the automobile will result in additional taxable
income to him.

          (iv) Up to $10,000 per annum in reimbursement of legal and personal tax preparation and
planning assistance.

          (v) Payment or reimbursement of the cost of membership for himself and his immediate family in
one country club and one business club, and business-related use thereof.

          (vi) Payment or reimbursement of the cost, not covered by health insurance, of one
comprehensive physical examination during each year during the term of this Agreement.

          (vii) Special Travel Arrangements. The Company shall permit, arrange for and bear the cost
and expense of the judicious and reasonable use by the Executive of an airplane for business,
personal and family travel, including as an element of such cost and expense the federal, state and
local income tax consequences to the Executive of the use of such airplane for non-business
purposes.

Executive acknowledges that he will have no right to cash compensation in lieu of any of the
specific foregoing fringe benefits except with respect to vacation pay, and then only to the
extent, if any, allowed by the Company’s vacation pay policies as in effect from time to time.

     (e) EXPENSES. The Executive will be entitled to reimbursement of all reasonable
expenses, in accordance with the Company’s policy as in effect from time to time and on a basis not
less favorable than that applicable to other executives of the Company, including, without
limitation, telephone, travel and entertainment expenses incurred by the Executive in connection
with the business of the Company, subject to such reasonable substantiation and documentation as
may be specified by the Company.

     (f) INDEMNIFICATION. The Company shall, and the Company shall use its best efforts to
cause any subsidiaries or affiliates it may now or hereafter have to, indemnify the Executive to
the maximum extent permitted by law and regulation in connection with any liability, expense or
damage which the Executive incurs as a result of the Executive’s employment and positions with the
Company and its current or future subsidiaries as contemplated by this Agreement, provided that the
Executive shall not be indemnified with respect to any matter as to which he shall have been
adjudicated in any proceeding not to have acted in good faith in the reasonable belief that his
action was in the best interest of the Company and its subsidiaries. The Company, on behalf of
itself and its current and future subsidiaries, hereby confirms that the occupancy of all offices
and positions which in the future are or were occupied or held by the Executive in connection with
his employment under this Agreement have been so occupied or held at

4

 

the request of and for the benefit of the Company and its subsidiaries for purposes of the
Executive’s entitlement to indemnification under applicable provisions of the respective articles
of organization and/or other similar documents of the Company and its subsidiaries.

Expenses incurred by the Executive in defending a claim, action, suit, investigation or proceeding
shall be paid by the Company in advance of the final disposition thereof upon the receipt by the
Company of an undertaking by the Executive to repay such amount if it shall ultimately be
determined that he is not entitled to be indemnified hereunder. The foregoing rights are not
exclusive and shall not limit any rights accruing to the Executive under any other agreement or
contract or under applicable law.

     (g) PARACHUTE PAYMENT TAXES. Notwithstanding any other provisions of this Agreement,
in the event that any payment or benefit under this Agreement or any other agreement or arrangement
of the Company received or to be received by the Executive in connection with a Change in Control
or the termination of the Executive’s employment (all such payments and benefits, the “Total
Payments”) is determined to be subject (in whole or part) to the excise tax imposed by Section 4999
of the Code (together with any interest or penalties imposed with respect to such excise tax, the
“Excise Tax”), then the Executive shall be entitled to receive an additional payment (a “Gross-Up
Payment”) in an amount such that after payment by the Executive of all taxes (including any
interest or penalties imposed with respect to such taxes), including without limitation any income
taxes and Excise Tax imposed upon the Gross-Up Payment, the Executive retains an amount equal to
the Excise Tax (and, for the avoidance of doubt, the amount of the Total Payments). All
determinations required to be made under this Section 4(g), including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in
arriving at such determination, shall be made by the Company’s accountants or such other certified
public accounting firm reasonably acceptable to the Company as may be designated by the Executive
which shall provide detailed supporting calculations both to the Company and the Executive.

5. TERMINATION OF EMPLOYMENT AND EFFECTS THEREOF.

     (a) TERMINATION. This Agreement and the Executive’s employment under this Agreement
may be terminated only in the following circumstances. On any termination in accordance with this
Section, the Executive (or in the event of his death, his estate) shall be entitled to his then
Salary earned but unpaid through the end of the month in which termination (including death)
occurred. The Company shall have only such further obligations to the Executive (or in the event of
his death, his estate), if any, as are specified below under the applicable termination provision.

          (i) UPON DEATH. In the event of the Executive’s death during the term hereof, the
Executive’s employment hereunder shall immediately and automatically terminate.

          (ii) AS A RESULT OF DISABILITY. In the event that the Executive becomes disabled
during the term hereof within the meaning of the Company’s then applicable long-term disability
plan, the Company may terminate the Executive’s employment without further obligation upon notice
to the Executive. In the event of such disability, the Executive will continue to receive his base
salary and benefits under

5

 

Section 4 hereof until the earlier of his death or the date the Executive becomes eligible for
disability income under the Company’s then applicable long-term disability plan or workers’
compensation insurance plan.

          (iii) BY THE COMPANY FOR CAUSE. The Company may terminate the Executive’s employment
for Cause (as defined in subsection (b) below) at any time upon notice to the Executive setting
forth in reasonable detail the nature of such Cause.

          (iv) BY THE COMPANY OTHER THAN FOR CAUSE. The Company may terminate Executive’s
employment other than for Cause upon thirty (30) days notice to the Executive (or at its option
immediately with thirty (30) days continued compensation, including then Salary and benefits, in
lieu of such notice). In the event of such termination, Executive (or in the event of his death
following termination, his estate) shall be entitled only to the additional amounts described in
subparagraph (A) below and the continuation of health insurance benefits described in subparagraph
(B) below:

          (A) Salary and Pro Rata Bonus Payment. If the Executive’s employment is terminated by
the Company without Cause, the Executive shall be entitled to a payment equal to (x) one (1) times
his annual Salary at the highest annualized rate in effect during the one year immediately
preceding the date of the date of termination, payable in a single lump sum within thirty (30) days
of termination, plus (y) a pro rata bonus, in an amount determined under the terms of the
applicable Company bonus plan, (but not less than 100% of the Executive’s annual Salary for the
first year of this Agreement), payable at the same time as executive bonuses are paid generally
under the applicable Company bonus plan, but in no event later than March 15 of the year following
the year in which the termination occurs.

          (B) Health Care Continuation. If at his termination of employment by the Company
without Cause the Executive is eligible to and timely elects continued health coverage under
Sections 601-607 of ERISA (“COBRA Continuation”) then, for the period of such COBRA Continuation,
the Company shall also pay that share of the premium cost of Executive’s COBRA Continuation (and
that of his eligible dependents also electing COBRA Continuation) in the Company’s group health
plan as it pays for active employees of the Company and their dependents generally.

          (C) Effect of Change of Control. In the event the Company terminates the Executive’s
employment other than for Cause within one (1) year following a Change of Control (as defined in
subparagraph (b) below), the Executive shall be entitled to receive an amount equal to the greater
of (i) or (ii):

          (i) three (3) times his annual Salary at the highest annualized rate in effect during the one
year immediately preceding the date of the Change of Control, payable in a single lump sum within
thirty (30) days of termination, in lieu of the amount described in subparagraph (A) above, COBRA
Continuation under subparagraph (B) above (but in this event, for a maximum of eighteen (18)
months), three (3) times his target bonus (which shall be 100% of the Executive’s annual Salary if
the Change of Control occurs during the first year of this Agreement), and all equity incentive
awards will be fully vested (including the award pursuant to Section 4(c)); or

          (ii) The amount payable under the following schedule:

6

 

	 	 	 
	Change of Control Date	 	 
	Payable	 	Amount
	Within one (1) year of Effective Date
	 	$5,000,000
	After one (1) year but less than two (2) years of Effective Date
	 	$2,500,000
	After two (2) years but less than three (3) years of Effective Date
	 	$1,250,000
	After three (3) years of Effective Date
	 	$0

For purposes of comparing the amounts payable under (i) and (ii), the value of the vesting of
equity awards in (i) shall be the fair market value of any restricted stock that is vested and the
difference between the current fair market value of the Company’s stock and the exercise price of
any option that is vested.

          Anything in this Agreement to the contrary notwithstanding, if the Executive’s employment with
the Company is terminated other than for Cause prior to the date on which a Change of Control
occurs, and it is reasonably demonstrated that such termination (i) was at the request of a third
party who has taken steps reasonably calculated to effect a Change in Control or (ii) otherwise
arose in connection with or anticipation of a Change in Control then for all purposes of this
Agreement the date of the Change in Control shall mean the date immediately prior to the date of
such termination.

          (v) BY THE EXECUTIVE. Executive may terminate his employment and this Agreement for
any or no reason whatsoever at any time. Except as provided in subparagraph (B), the Executive
shall give at least sixty (60) days’ advance notice of any such termination.

          (A) Good Reason. In the event the Executive gives such notice for and within sixty
(60) days of having Good Reason, on the effective date of his resignation he shall be entitled to
receive an amount equal to one (1) times his annual Salary at the highest annualized rate in effect
during the one year immediately preceding the date of the date of termination, payable in a single
lump sum within thirty (30) days of termination, COBRA Continuation under subparagraph (B) of
paragraph (iv) above and a pro rata bonus under subparagraph (A) of paragraph (iv) above.

          (B) Effect of Change of Control. In the event the Executive gives notice to terminate
employment within six (6) months after a Change of Control event occurs without having Good Reason
to terminate employment, he shall receive the benefits provided under Section 5(a)(iv)(C)(i) above.
In the event that at any time within one (1) year following a Change of Control the Executive
gives notice to terminate employment for Good Reason (with such notice given within sixty (60) days
of having Good Reason), he shall receive the greater of the benefits provided under Section
5(a)(iv)(C)(i) or (ii) above. Anything in this Agreement to the contrary notwithstanding, if the
circumstances constituting Good Reason occur prior to the date on which a Change of Control occurs,
and it is reasonably demonstrated that such circumstances (i) occurred at the request of a third
party who has taken steps reasonably calculated to effect a Change in Control or (ii) otherwise
arose in connection with or anticipation of a Change in Control then for all purposes of this
Agreement the date of the Change in Control shall mean the date immediately prior to the occurrence
of such circumstances.

7

 

          (C) Resignation without Good Reason. In the event the Executive resigns other than in
the circumstances described in subparagraphs (A) and (B) above, he shall not be entitled to any
additional Salary or COBRA Continuation or pro rata bonus. The Company may at its sole option
waive the requirement of advance notice and decline to accept the Executive’s service for any
period following its receipt of notice, but in that event, Executive shall be entitled to continued
compensation in accordance with Section 4 for the entirety of the otherwise applicable notice
period (and will be deemed to be an employee for such period) as well as Salary and COBRA
Continuation and pro rata bonus in accordance with this paragraph if applicable.

          (vi) EXPIRATION. In the event that the Company or the Executive gives a Termination
Notice under Section 3(a), then upon the expiration of the term of this Agreement, if the Executive
is then employed, the Executive shall be entitled to receive an amount equal to (x) one (1) times
his annual Salary at the highest annualized rate in effect during the one year immediately
preceding the date of termination, plus (y) a pro rata bonus under subparagraph (A) of paragraph
(iv) above, payable in a single lump sum within thirty (30) days of the expiration of the term of
this Agreement, and COBRA Continuation under subparagraph (B) of paragraph (iv) above. The Salary
benefit provided by this paragraph (vi) shall be reduced (but not below zero) by the amount of any
other cash severance benefit to which the Executive may then be entitled under any general
severance plan or policy of the Company.

     (b) DEFINITIONS. For these purposes:

          (i) “Cause” means the Executive has: (A) been convicted of, or has pled guilty or nolo
contendere to any felony, or any misdemeanor involving moral turpitude under the laws of the United
States or any state or political subdivisions thereof; (B) committed a breach of duty of loyalty
which is materially detrimental to the Company; (C) materially violated any provision of Section 6
of this Agreement; (D) failed to perform or adhere to explicitly stated duties or guidelines of
employment or to follow the directives of the Board (which are not unlawful to perform or to adhere
to or follow and which are within the scope of Executive’s duties) following a written warning that
if such failure continues it will be deemed a basis for a “For Cause” dismissal; or (E) acted with
gross negligence or willful misconduct in the performance of the Executive’s duties. No act, or
failure to act, on the Executive’s part shall be deemed “willful” unless done, or omitted to be
done, by the Executive not in good faith and without reasonable belief that the Executive’s act, or
failure to act, was in the best interest of the Company. Following a Change of Control, subsection
(D) above shall be deleted from this definition of “Cause.”

          (ii) “Change of Control” means the occurrence of any of the following: (A) a merger or
consolidation of the Company or Wheeling-Pittsburgh Steel Corporation (“WPSC”) with or into another
person or the sale, transfer, or other disposition of all or substantially all of the Company’s or
WPSC’s assets to one or more other persons in a single transaction or series of related
transactions, unless securities possessing more than 50% of the total combined voting power of the
survivor’s or acquirer’s outstanding securities (or the securities of any parent thereof) are held
by a person or persons who held securities possessing more than 50% of the total combined voting
power of the Company immediately prior to that transaction; (B) any person or group of persons
(within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended and in
effect from time to time), other than the Company, WPSC or an affiliate, directly or indirectly
acquires beneficial ownership (determined pursuant to Securities

8

 

and Exchange Commission Rule 13d-3 promulgated under the said Exchange Act) of securities
possessing more than 50% of the total combined voting power of the Company’s outstanding securities
pursuant to a tender or exchange offer made directly to the Company’s stockholders; or (C) over a
period of 36 consecutive months or less from the Effective Date, there is a change in the
composition of the Board such that a majority of the members of the Board (rounded up to the next
whole number, if a fraction) ceases to be composed of individuals who either (1) have been members
of the Board continuously since the beginning of the 36-month period referred to above or (2) have
been elected or nominated for election as Board members during such period by at least a majority
of the members Board described in the preceding clause (1) who were still in office at the time
that election or nomination was approved by the Board, provided, however, that a Change of Control
shall be deemed to have occurred in any event if, by reason of one or more actual or threatened
proxy contests for the election of directors or otherwise, a majority of the Board shall consist of
individuals, other than directors referred to in clause (1) above, whose election as members of the
Board occur within such 36-month period at the request or on behalf of the same person or group of
persons (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended
and in effect from time to time). Notwithstanding the foregoing, a Change of Control shall not be
deemed to have occurred if the merger of the Company with Companhia Siderurgica Nacional (CSN)
contemplated in the Merger Agreement dated October 24, 2006 is consummated or a change-of-control
transaction (including a merger) of the Company with Esmark Incorporated is consummated.

          (iii) “Good Reason” means (A) the assignment to the Executive of any duties inconsistent with
the Executive’s status as the Chief Executive Officer of the Company, a meaningful alteration,
adverse to the Executive, in the nature or status of the Executive’s responsibilities, or the
Executive ceasing to be the Chief Executive Officer of the Company; (B) permanent relocation of his
principal place of employment to a location more than seventy-five miles distant from his principal
place of employment as of the Effective Date; (C) a reduction by the Company in the Executive’s
annual base salary as in effect on the date hereof or as the same may be increased from time to
time except for across-the-board salary reductions similarly affecting all senior executives of the
Company and all senior executives of any person in control of the Company; (D) the failure by the
Company to continue in effect any compensation plan in which the Executive participates which is
material to the Executive’s total compensation, or the failure by the Company to continue the
Executive’s participation therein on a basis not materially less favorable, both in terms of the
amount of benefits provided and the level of the Executive’s participation relative to other
participants; (E) the failure by the Company to continue to provide the Executive with benefits
substantially similar to those enjoyed by the Executive under any of the Company’s pension, life
insurance, medical, health and accident, or disability plans at any time subsequent to the
Effective Date, or the taking of any action by the Company which would directly or indirectly
materially reduce any of such benefits or deprive the Executive of any material fringe benefit
enjoyed by the Executive at any time subsequent to the Effective Date; or (F) the receipt by the
Executive of notice from the Company in accordance with Section 3(a) that the term of this
Agreement shall not be extended as provided in that section; provided, however, that the events
described in (D) and (E) above shall not constitute “Good Reason” where they are the direct result
of the elimination or modification of benefit plans or arrangements by the Company with respect to
employees generally.

9

 

     (c) CESSATION OF AUTHORITY ON TERMINATION. Immediately upon the Executive terminating
or being terminated from his position with the Company for any reason or no reason, the Executive
will stop serving the functions of the terminated or expired position, or any other positions with
any affiliate, and shall be without any of the authority of or responsible for any position. On
request of the Board, at any time following his termination of employment for any reason or no
reason, the Executive shall resign from the Board if then a member and the board of directors of
any subsidiary of the Company of which he is then a member.

     (d) NO OBLIGATION TO MITIGATE. Executive shall not be required to seek other
employment or income to reduce any amounts payable to the Executive by the Company under this
Section. Further, the amount of any payment or benefit provided for by this Section shall not be
reduced by any compensation earned by the Executive as the result of employment by another
employer, retirement benefits, by offset against any amount claimed to be owed by the Executive to
the Company, or otherwise.

     (e) RELEASE OF CLAIMS. Notwithstanding the foregoing, the Executive shall not be
entitled to any payments under this Section unless within twenty-one (21) days following his
termination he shall have executed and delivered to the Company a general release of claims in the
form attached hereto as Exhibit A.

     (f) SECTION 409A. Notwithstanding the foregoing provisions of this Agreement to the
contrary, if the Company determines that any amounts to be paid to the Executive under this
Agreement are subject to Section 409A of the Code, then the Company shall in good faith adjust the
form and the timing of such payments as it reasonably determines to be necessary or advisable to be
in compliance with Section 409A. If such a payment must be delayed to comply with Section 409A,
then the deferred payments shall be paid at the earliest practicable date permitted by Section
409A.

6. PROVISIONS RELATING TO EXECUTIVE CONDUCT AND TERMINATION OF EMPLOYMENT.

     (a) CONFIDENTIALITY. The Executive recognizes and acknowledges that certain assets of
the Company constitute Confidential Information. The term “Confidential Information” as used in
this Agreement shall mean all information which is known only to the Executive or the Company,
other employees or others in a confidential relationship with the Company and any persons
controlling, controlled by or under common control with the Company (each, an “Affiliate”) and
their respective employees, officers and partners), and relating to the Company’ or any Affiliate’s
business (including, without limitation, information regarding clients, customers, pricing
policies, methods of operation, proprietary computer programs, sales, products, profits, costs,
markets, key personnel, formulae, product applications, technical processes, and trade secrets), as
such information may exist from time to time, which the Executive acquired or obtained by virtue of
work performed for the Company, or which the Executive may acquire or may have acquired knowledge
of during the performance of said work. The Executive agrees that at all times during his
employment and thereafter (including periods after the term of this Agreement), he will keep and
maintain all Confidential Information and all of the affairs of the Company and its Affiliates
confidential, and will not, except (1) as necessary for the performance of his responsibilities
hereunder or (2) as required by judicial process and after three days prior notice to the Company
unless required earlier

10

 

by a court order or a legal requirement, disclose to any person for any reason or purpose
whatsoever, directly or indirectly, all or any part of the Confidential Information of the Company
and its Affiliates. The Executive is not bound by the restrictions in this paragraph with respect
to any information that becomes public other than as a consequence of the breach by the Executive
of his confidentiality obligations hereunder or is disclosed without an obligation of
confidentiality. The Executive can disclose all information to his personal advisors subject to
becoming liable for any violation by them of Executive’s confidentiality obligations.

     (b) RETURN OF MATERIALS. The Executive agrees that on the termination of his
employment, however such termination may occur, the Executive will promptly return to the Company
all materials and other property from time to time held by the Executive and proprietary to the
Company including without limitation any documents incorporating, reflecting or reproducing in
whole or in part any Confidential Information, credit cards, and the like.

     (c) NON-SOLICITATION AND NON-COMPETE. The Executive agrees that,

          (i) except as agreed to by the board of directors, during the term hereof, he will not,
directly or indirectly, either as a principal, agent, employee, employer, stockholder, co-partner
or in any other capacity whatsoever, engage in any outside activity, whether or not competitive
with the business of the Company, that could foreseeably give rise to a conflict of interest or
otherwise interfere with his duties and obligations to the Company;

          (ii) during the term hereof and for twelve (12) months after the term, he will not, directly
or indirectly, either as a principal, agent, employee, employer, stockholder, co-partner or in any
other capacity whatsoever, solicit, hire or attempt to hire, or assist others in soliciting, hiring
or attempting to hire, any individual employed by the Company at any time while the Executive was
also so employed, or encourage any such individual to terminate his or her relationship with the
Company ; provided, however, that nothing in this Section 6(c) shall be deemed to
prohibit Executive from: (i) making general solicitations of employment published in newspapers,
trade journals or other publications of general circulation; or (ii) employing individuals who have
terminated their employment with the Company;

          (iii) during the term hereof and for twelve (12) months after the term, he will not, directly
or indirectly, either as a principal, agent, employee, employer, stockholder, co-partner or in any
other capacity whatsoever, engage in or undertake any planning for any activity which is
competitive with the business of the Company, as conducted or under consideration at any time
during his employment by the Company; and

          (iv) for purposes of this section, Executive’s employment now or in the future or other
affiliation with Esmark Incorporated (including its successors, assigns or at any time before,
during or after its affiliation with one or more steel production facilities) shall not be a
conflict of interest, prohibited or constitute activity which is competitive with the business.

     (d) REASONABLENESS OF RESTRICTIONS. The restrictions against activities set forth in
subsection (c) above are considered by the parties to be reasonable

11

 

for the purposes of protecting the business of the Company. If any restriction is found by a
court of competent jurisdiction to be unenforceable because it extends for too long a period of
time, over too broad a range of activities or in too large a geographic area, that restriction
shall be interpreted to extend only over the maximum period of time, range of activities or
geographic area as to which it may be enforceable.

     (e) NONINTERFERENCE. In the event of any dispute under this Agreement or otherwise
relating to the Executive’s relationship with the Company, any Affiliate of the Company, or their
respective principals or management, whether or not during the term of this Agreement, the
Executive agrees not to bring any legal proceeding or take any legal action to seek to enjoin or
otherwise impede the purchase, sale, financing, refinancing, development, establishment or
operation of any business venture or entity in which any of such persons or entities has any
interest.

7. MISCELLANEOUS.

     (a) FREEDOM TO CONTRACT. The Executive represents that he is free to enter into this
Agreement and carry out his obligations hereunder without any conflict with any prior agreements,
and that he has not made and will not make any agreement in conflict with this Agreement.

     (b) ENTIRE AGREEMENT. This Agreement represents the entire and only understanding
between the parties on the subject matter hereof and supersedes any other agreements or
understandings between them on such subject matter.

     (c) SPECIFIC ENFORCEMENT. The parties acknowledge and agree that the Executive’s
breach of the provisions of Sections 6 and 7 of this Agreement may cause irreparable harm to the
Company, that the remedy of damages will not be adequate for the enforcement of such provisions,
and that such provisions may be enforced by equitable relief, including injunctive relief, which
relief shall be cumulative and in addition to any other relief to which the Company may be
entitled.

     (d) BINDING EFFECT; SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the heirs, executors, administrators, successors and assigns of the
respective parties. Without the express written consent of the other party, neither the Company nor
the Executive may assign any duties or right or interest hereunder or right to receive any money
hereunder and any such assignment shall be void; provided, however, that without the Executive’s
consent the Company may assign its rights and obligations hereunder in their entirety to any
successor to all or substantially all of its business, whether affected by merger or otherwise. The
preceding sentence, however, shall not prevent the transfer of any right or interest to receive any
money hereunder by the Executive by way of testamentary disposition or intestate succession. The
Company shall require any successor or assign (whether direct or indirect, by purchase, merger,
reorganization, consolidation, acquisition or property or stock, liquidation or otherwise) to all
or a significant portion of the assets of the Company, by agreement in form and substance
satisfactory to the Executive, to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if no such succession
had taken place. Regardless of whether such agreement is executed by a successor, this Agreement
shall continue to be binding upon the Company and any successor and assign shall be deemed the
“Company” for purposes of this Agreement.

12

 

     (e) SEVERABILITY. In the event any provision of this Agreement shall be determined in
any circumstances to be invalid or unenforceable, such determination shall not affect or impair any
other provision of this Agreement or the enforcement of such provision in other appropriate
circumstances.

     (f) NOTICES. All notices and other communications hereunder shall be in writing or by
written telecommunication, and shall be deemed to have been duly given if delivered personally or
if sent by overnight courier or by certified mail, return receipt requested, postage prepaid or
sent by written telecommunication or telecopy, to the relevant address set forth below, or to such
other address as the recipient of such notice or communication shall have specified to the other
party hereto in accordance with this Section 7(f):

If to the Company, to:

Wheeling-Pittsburgh Corporation

1134 Market Street

Wheeling, WV 26003

Attention: [President]

Telecopy: 304-234-2690

with a copy to the Company’s General Counsel at the same address.

If to the Executive, at his last residence shown on the records of the Company.

Any such notice shall be deemed to have been received (i) if delivered personally, when received,
(ii) if sent by overnight courier, when sent, (iii) if mailed, two (2) days after being mailed as
described above and (iv) in the case of facsimile transmission, when confirmed by facsimile machine
report.

     (g) ARBITRATION OF CLAIMS. The parties hereto agree that except as provided in Section
7(c) above any dispute hereunder, or otherwise relating to the Executive’s relationship with the
Company, whether or not arising during the term of this Agreement, shall be resolved by submission
to final and binding arbitration held in Pittsburgh, Pennsylvania or as otherwise mutually agreed
under the National Rules for the Resolution of Employment Disputes of the American Arbitration
Association then existing, and judgment on any arbitration award may be entered in any court of
competent jurisdiction. Any cause of action or matter in dispute is hereby waived unless
arbitration proceedings are initiated by the complaining party within one (1) year from the later
of the accrual of the cause of action or the date on which the cause of action should reasonably
have been discovered. The Executive and the Company agree any such arbitrator shall not be
empowered to amend or modify this Agreement or any other relevant agreement in any respect and
further agree that the arbitrator shall not have the jurisdiction to award punitive damages and
shall be without the authority to award relief other than monetary damages. Executive and the
Company understand and agree that the Company shall bear the arbitrator’s fee and any other type of
expense or cost that Executive would not be required to bear if Executive were free to bring the
dispute or claim in court as well as any other expense or cost that is unique to arbitration.
Except as provided in Section 7(i) below, Executive and the Company shall each pay their own
attorneys’ fees incurred in connection with an arbitration, and the arbitrator will not have
authority to award attorneys’ fees unless a statute or contract at issue in the dispute

13

 

authorizes the award of attorneys’ fees to the prevailing party, in which case the arbitrator
shall have the authority to make an award of attorneys’ fees as required or permitted by applicable
law. If there is a dispute as to whether Executive or the Company is the prevailing party, the
arbitrator will decide this issue. Any cause of action or matter in dispute is hereby waived unless
arbitration proceedings are initiated by the complaining party within one (1) year from the later
of the accrual of the cause of action or the date on which the cause of action should reasonably
have been discovered.

     (h) JURY & PUNITIVE DAMAGES WAIVER. EACH PARTY EXPRESSLY WAIVES ANY AND ALL RIGHTS
THAT HE OR IT MAY HAVE TO HAVE ANY DISPUTE (WHETHER OR NOT ARISING DURING THE TERM OF THIS
AGREEMENT) HEREUNDER OR OTHERWISE RELATING TO THE EXECUTIVE’S RELATIONSHIP WITH THE EMPLOYER OR ANY
AFFILIATE TRIED BEFORE OR DETERMINED BY A JURY OR TO CLAIM OR RECOVER PUNITIVE DAMAGES.

     (i) REIMBURSEMENT OF LEGAL FEES. In the event that it shall be necessary or desirable
for the Executive to retain legal counsel or incur other costs and expenses in connection with the
enforcement of any or all of his rights under Agreement, and provided that the Executive
substantially prevails in the enforcement of such rights, the Company shall pay (or the Executive
shall be entitled to recover from the Company, as the case may be) the Executive’s reasonable
attorneys’ fees and costs and expenses in connection with the enforcement of his rights, including
the enforcement of any arbitration award, up to $50,000 in the aggregate.

     (j) AMENDMENT. This Agreement may be modified only by an instrument in writing
executed by the parties hereto.

     (k) INTERPRETATIVE MATTERS; COUNTERPARTS. The headings of sections of this Agreement
are for convenience of reference only and shall not affect its meaning or construction. The
language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rule of strict construction will be applied against any party. Except
as provided in Section 7(g), no delay or omission by either party hereto in exercising any right,
power or privilege hereunder shall impair such right, power or privilege, nor shall any single or
partial exercise of any such right, power or privilege preclude any further exercise thereof or the
exercise of any other right, power or privilege. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. In making proof of this Agreement it shall not be necessary to produce
or account for more than one such counterpart.

     (l) GOVERNING LAW. This Agreement is to be governed and construed according to the
internal substantive laws of the Commonwealth of Pennsylvania.

     (m) CONFLICTS. To the extent that this Agreement conflicts with any provision, in any
handbook, policy manual, rule or regulation, the provisions of this Agreement shall take precedent.

     (n) CONSULTATION WITH COUNSEL. The Executive acknowledges that he has had a full and
complete opportunity to consult with counsel or other advisers of his own choosing concerning the
terms, enforceability and implications of this Agreement,

14

 

and that the Company has made any representations or warranties to the Executive concerning
the terms, enforceability and implications of this Agreement other than as are reflected in this
Agreement.

     (o) WITHHOLDING. Any payments provided for in this Agreement shall be paid net of any
applicable tax withholding required under federal, state or local law, or shall be subject to
Executive’s reimbursement obligations under Section 4(a) hereof.

     (p) REGISTRATION RIGHTS. If any Company common stock issued to the Executive under
this Agreement is not registered under the Securities Act of 1933, at the request of the Executive,
the Company shall file with the Securities and Exchange Commission a registration statement on the
applicable form, relating to the resale by the Executive of all of the common stock, and the
Company shall use its commercially reasonable best efforts to cause such registration statement to
be declared effective.

[Remainder of the page intentionally left blank]

15

 

     IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date and year
first above written.

	 	 	 	 	 
	 	 	WHEELING-PITTSBURGH CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David A. Luptak
	 

	 	 	 	 
	 

	 	Title:
	 	Secretary
	 
	 	 	 	 
	 	 	EXECUTIVE:
	 
	 	 	 	 
	 	 	     /s/ James P. Bouchard
	 	 	 
	 	 	James P. Bouchard

16

 

EXHIBIT A

RELEASE OF CLAIMS

In exchange for the severance pay and other benefits set forth in my 2006 Employment Agreement with
Wheeling-Pittsburgh Corporation (the “Company”) effective as of December 1, 2006 (as amended
through the date hereof, the “Employment Agreement”), I forever give up, waive and release any and
all claims, charges, complaints, grievances or promises of any and every kind I may have up to the
date of this Release against the Company, Wheeling-Pittsburgh Steel Corporation (“WPSC”), and other
affiliates and its and their directors, officers and employees, and related persons, including,
without limitation, my rights under Title VII of the Civil Rights Act of 1964, as amended by the
Civil Rights Act of 1991, the Employee Retirement Income Security Act (“ERISA”), the Equal Pay Act,
the Americans with Disabilities Act (“ADA”), the Age Discrimination in Employment Act (“ADEA”) and
other federal and state statutes prohibiting discrimination on the basis of age, sex, race, color,
handicap, religion and national origin and any common law claims, including without limitation,
claims for defamation, intentional infliction of emotional distress, intentional interference with
contract, negligent infliction of emotional distress, personal injury, breach of contract, unpaid
wages or compensation, or claims for unreimbursed expenses. This release shall not extend to any
claim to amounts due me in accordance with the terms of my Employment Agreement after termination
of my employment or to claims to indemnity I may have under the terms of my Employment Agreement,
applicable law, or the Company’s or WPSC’s articles of organization or bylaws for having served as
a director, officer or employee of the Company, WPSC or any affiliate. I acknowledge that I have
been advised of my right to consult an attorney before I sign this Release and that I have
twenty-one (21) days to consider whether to sign this Release. If the Release is not received by
the Company at the end of the twenty-one (21) day period, it will be considered expired and
withdrawn and the Company’s severance obligations under my Employment Agreement void. If I execute
this Release prior to the end of the twenty-one (21) day period that has been provided for me to
consider it, I agree and acknowledge that the prior execution was a knowing and voluntary waiver of
my right to consider this Release for a full twenty-one (21) days, and was due to my conclusion
that I had ample time in which to consider and understand this Release, and in which to review this
Release with my counsel.

Nothing in this Release shall be construed to affect the Equal Employment Opportunity Commission’s
(“Commission”) independent right and responsibility to enforce the law. I understand, however,
that, while this Release does not affect my right to file a charge or participate in an
investigation or proceeding conducted by the Commission, it does bar any claim I might have to
receive monetary damages in connection with any Commission proceeding concerning matters covered by
this Release.

I understand I have the right to revoke this Release within seven (7) days of signing it. I
understand that to revoke this Release, I must notice the Company in writing in accordance with the
notice procedures set forth in my Employment Agreement.

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Executive
	 
	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 	 	 

17

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