Document:

Exhibit

EXHIBIT 10.36 
SEVERANCE AGREEMENT
Before signing this Severance Agreement, You are advised to consult with an attorney prior to executing this Agreement.  Your signature must be notarized.
This Severance Agreement (the “Agreement”) is entered into knowingly and voluntarily by and between P. Kelly Tompkins (“Employee”) and Cleveland-Cliffs Inc. and its affiliates identified in Section III.A., below (collectively the “Company”).  Employee and the Company may be collectively referred to as the “Parties.”
RECITALS
A.    Employee has decided to voluntarily retire and terminate his employment with the Company as its Executive Vice President-Chief Operations Officer and the Company has decided to accept Employee’s voluntary termination of employment effective December 31, 2017 (the “Retirement Date”).
B.    The Company agrees to pay Employee all wages and other compensation earned through the Retirement Date.
C.    Employee and the Company desire to establish the terms for an amicable separation of Employee’s employment on the Retirement Date, to facilitate an appropriate transition of Employee’s responsibilities to the Company and to settle fully and finally any and all differences between them which have arisen, or may arise, out of the employment relationship and/or the termination of that relationship.
D.    The Company desires to offer Employee the payments and benefits described herein in connection with Employee’s termination of employment. 
E.     Receipt of the payments and benefits described herein requires: (1) execution and notarization; (2) delivery to the Company; and (3) non-revocation of both this Agreement and the attached Release, all within the time frames specified in Section V of the Release.
AGREEMENT
I.    TERMINATION, SEVERANCE PAYMENTS AND BENEFITS
A.On the Retirement Date, Employee’s employment with the Company shall cease, he shall cease to be the Executive Vice President - Chief Operating Officer of the Company, and he shall resign from any other positions that he then holds with the Company as of the Retirement Date.  Employee further agrees to execute any further documents required to effectuate such resignations as may be requested by the Company.  As of the Retirement Date, Employee shall be released from his duties with the Company and cease to have any authority to conduct business on behalf of the Company.
B.Subject to Section I.C., Employee shall receive the following payments and benefits (collectively, the “Payments”) if Employee (i) signs, notarizes and delivers this Agreement; (ii) signs, notarizes and delivers the attached Release no earlier than the calendar day following the Retirement Date and no later than the day after the end of the time period described in Section V.A. of the Release; and (ii) does not revoke the Release prior to the “Effective Date” (as defined in Section V.D. of the Release):
		
	1.
	A lump sum cash payment equal to Seventy Thousand Dollars ($70,000), paid, less appropriate federal, State of Ohio and local withholdings and deductions, in a lump sum within fifteen (15) days after the Effective Date (the “Payment Date”).

		
	2.
	Employee shall continue to be covered by any provision for indemnification by the Company in effect on the date of the execution of this Agreement for so long as it provides such indemnification for its active senior executives. In addition, the Company shall continue to maintain D&O coverage that covers past executives to the same extent that it covers present executives.  Finally, in the event of a change in control in which the Company is not the survivor, the Company shall use its reasonable 

best efforts to require as part of such transaction that the surviving company provide indemnification and D&O coverage that covers the past executives of the Company.
		
	3.
	Employee shall receive continued tax support services through April 30, 2018, including assistance with the filing of Employee’s 2017 tax return.

C.Should Employee breach any of the covenants contained in Sections VI (relating to the covenant of confidentiality), VIII (relating to covenant to cooperate with the Company), X (relating to the covenant not to disparage the Company), and XI (relating to the covenant not to solicit employees) of this Agreement, Employee shall be required to return the Payments already received under this Agreement in excess of one (1) week Base Pay within seven (7) days of demand by the Company, and shall receive no further Payments this Agreement.
D.Subject to Section I.C., should Employee die prior to receipt of the Payments set forth in Section I.B., then the Payments will be payable to Employee’s estate or otherwise inure to the benefit of his/her heirs.
E.The term “Base Pay” shall mean Employee’s rate of annual base salary in effect as of the Retirement Date.  Base Pay does not include pension contributions made by the Company, welfare or other fringe benefits paid for by the Company, expense reimbursements, overtime pay, bonuses, commissions, incentive pay, or any other special compensation.
II.    REPRESENTATIONS AND WARRANTIES
Employee understands, acknowledges and agrees that:
		
	•
	Employee has the sole right and exclusive authority to execute this Agreement.

		
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	The Company and the Plan are not obligated to pay, and will not pay, to Employee any Payment until the Release has become effective.

		
	•
	Employee signs this Agreement knowingly and voluntarily, in order to induce Company to provide the Payments.

		
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	Employee has not sold, assigned, transferred, conveyed or otherwise disposed of any of the claims, demands, obligations or causes of action referred to in this Agreement.

		
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	No other person or entity has an interest in the claims, demands, obligations or causes of action referred to in this Agreement.

		
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	The Payments that Employee will receive in exchange for signing this Agreement and the Release are in addition to anything of value to which Employee is already entitled.

		
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	The Payments provided for in this Agreement are the only consideration that Employee ever will receive from the Company or any Released Parties (as defined below) for any and all claims, demands, obligations or causes of action released in this Agreement or the Release.

		
	•
	This Agreement and its terms shall not be construed as an admission of any liability whatsoever on the part of the Company or any other Released Parties described in this Agreement, by which/whom any liability is and always has been expressly denied.

		
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	As of the date of execution of this Agreement, Employee has not filed any administrative charges or lawsuits arising out of or relating to his employment with the Company or the separation of that employment.  

		
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	As of the date of execution of this Agreement, Employee has no work-related injury and is medically stationary with no impairment of earning capacity. 

III.    RELEASE
A.    Employee, for himself, and his marital community (if any), agents, heirs, executors, administrators, and assigns, hereby knowingly and voluntarily fully releases and forever discharges from any and all agreements, debts, claims, demands, actions, judgments, causes of action, and liabilities of every kind or nature, known or unknown, that Employee, individually or as a member of a class, ever had or now has, the following (referred to as the “Released Parties”):
		
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	Cleveland-Cliffs Inc.

		
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	Cliffs Natural Resources Inc.;

		
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	Northshore Mining Company;

		
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	Silver Bay Power Company;

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	•
	Tilden Mining Company LC;

		
	•
	Empire Iron Mining Partnership;

		
	•
	Cliffs Mining Company;

		
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	Hibbing Taconite Company Joint Venture;

		
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	United Taconite LLC;

		
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	The Cleveland-Cliffs Iron Company;

		
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	Cliffs Mining Services Company;

		
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	Lake Superior & Ishpeming Railroad Company;

		
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	Cliffs International Management Company LLC;

		
	•
	Cliffs Sales Company;

		
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	Cliffs Natural Resources Exploration Ltda.;

		
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	Cliffs Natural Resources Pty Ltd;

		
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	All affiliates of Cleveland-Cliffs Inc. not already listed above, including any corporation or other entity which is controlled by or under common control with Cleveland-Cliffs Inc., or which is in the same affiliated service group or otherwise required to be aggregated with Cleveland-Cliffs Inc. under Sections 414 or 1563 of the Internal Revenue Code;

		
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	All current or former owners, officers, directors, shareholders, members, employees, managers, agents, attorneys, partners and insurers of the above entities; and

		
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	The predecessors, successors, and assigns of the above entities and individuals and the spouses, children, and family members of the individuals.

B.    Without limiting the generality of this Agreement, Employee acknowledges and agrees that this release is intended to bar every claim, demand, and cause of action, including without limitation any and all claims arising under:
		
	•
	The federal Civil Rights Acts of 1866, 1871, 1964 and 1991 and all similar state civil rights statutes; 

•The Employee Retirement Income Security Act of 1974;
•The Fair Labor Standards Act; 
•The Rehabilitation Act of 1973; 
•The Occupational Safety and Health Act;
•The Mine Safety and Health Act;
•The Health Insurance Portability and Accountability Act;
•The Age Discrimination in Employment Act;
•The Older Workers Benefit Protection Act;
•The Americans with Disabilities Act;
•The National Labor Relations Act;
•The Family and Medical Leave Act; 
•The Equal Pay Act;
•The Worker Adjustment and Retraining Notification Act;
•The Lilly Ledbetter Fair Pay Act;
•The Ohio Civil Rights Act; 
•State wage payment statutes;
•State wage and hour statutes;
•State employment statutes; 
•Any statutes regarding the making and enforcing of contracts;
•Any whistleblower statute; and 
•All similar provisions under all other federal, state and local laws.
C.    Without limiting the generality of this Agreement, Employee further acknowledges and agrees that this release is intended to bar all equitable claims and all common law claims, including without limitation claims of or for:
•Breach of an express or an implied contract;
•Breach of the covenant of good faith and fair dealing; 
		
	•
	Unpaid wages, salary, commissions, vacation or other employee benefits;

•Unjust enrichment;
•Negligent or intentional interference with contractual relations; 
•Negligent or intentional interference with prospective economic relations; 
•Estoppel; 

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•Fraud;
•Negligence;
•Negligent or intentional misrepresentation;
•Personal injury;
•Slander;
•Libel;
•Defamation;
•False light; 
•Injurious falsehood;
•Invasion of privacy; 
•Wrongful discharge; 
•Failure to hire;
•Retaliatory discharge;
•Constructive discharge; 
•Negligent or intentional infliction of emotional distress;
•Negligent hiring, supervision or retention;
•Loss of consortium; and
•Any claims that may relate to drug and/or alcohol testing.
D.    Employee further understands, acknowledges and agrees that this Agreement is a general release, and that Employee further waives and assumes the risk of any and all claims which exist as of this date, including those of which Employee does not know or suspect to exist, whether through ignorance, oversight, error, negligence, or otherwise, and which, if known, would materially affect Employee’s decision to sign this Agreement.
E.    Without limiting the generality of the releases provided for above, Employee expressly waives and releases any right, claim or entitlement to any payments or benefits under any agreement entered into by and between the Company and Employee that provides for the provision of any severance payments or benefits upon the termination of his employment by the Company beyond what is expressly provided for in this Agreement, including without limitation that certain Change in Control Severance Agreement between the Parties (the “CIC Agreement”).  The Parties further agree that the CIC Agreement is hereby terminated effective December 31, 2017 in its entirety notwithstanding any survivorship provisions of the CIC Agreement.
F.    Without limiting the generality of the Release provided for above, Employee expressly waives treatment as an active employee and shall be treated as a Retiree under the terms of the various outstanding Agreements.
G.    Employee further understands, acknowledges and agrees that this Agreement waives any right Employee has to recover damages in any lawsuit brought by Employee as well as in any lawsuit brought on his behalf by any other person or entity, including without limitation by the Equal Employment Opportunity Commission (EEOC) or any similar state agency.  Employee is not, however, waiving the right to file a charge with the EEOC or any similar state agency.
H.    This Agreement shall not be interpreted to release or require the release of the Company or the Released Parties from any:
		
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	Claims for Payments under this Agreement; or

		
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	Claims for benefits under any pension plan of the Company; or

		
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	Claims arising out of acts or practices which occur after the execution of this Agreement.

IV.    REPRESENTATION OF UNDERSTANDING OF RELEASE
Employee acknowledges that Employee has had the opportunity to consult an attorney of Employee’s own choosing before entering into this Agreement.  Employee represents and warrants that Employee has read all of the terms of this Agreement; and that Employee fully understands and voluntarily accepts these terms.  Employee further acknowledges and agrees that Employee has been given a reasonable period of time within which to consider this Agreement.

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V.    FEDERAL AGE DISCRIMINATION CLAIMS
Employee understands and agrees that a waiver of claims under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, (29 U.S.C.  621, et seq.) (the “ADEA”) is not effective unless it is “knowing and voluntary,” and that the ADEA imposes certain minimum requirements for a waiver to be knowing and voluntary.  Employee acknowledges and agrees that Employee is knowingly and voluntarily giving up any rights or claims for relief Employee may have under the ADEA regarding the Company’s conduct or the conduct of any Released Parties.  However, Employee acknowledges and agrees that Employee is not giving up the right to challenge the validity of this Agreement under the ADEA.
		
	VI.
	CONFIDENTIAL INFORMATION AND COVENANTS

A.    The Parties agree that this Agreement is confidential and agree not to disclose its terms to anyone other than, in the case of Employee, his spouse, attorney, or financial/tax advisor and, in the case of the Company, its officers, directors, or employees who need to know in order to execute the various provisions of this Agreement.  However, the Parties agree that this Agreement may be disclosed if required to do so by a Court of competent jurisdiction.
B.    The Parties agree not to make any public statement regarding the termination of Employee’s employment without first obtaining the written consent of the other Party.  However, the Company shall be permitted to submit any filings required by the Securities and Exchange Commission regarding Employee’s departure.
C.    Employee represents that, during Employee’s employment with the Company, Employee has not breached any confidentiality agreement to which Employee is a party.  Employee further represents and warrants that Employee will continue to abide by the terms of any confidentiality agreement applicable to Employee after the Retirement Date.
VII.    RETURN OF COMPANY PROPERTY
A.    Employee agrees to return to the Company all originals and copies of the Company’s property, documents and information in Employee’s possession, regardless of the form on which such information has been maintained or stored, including without limitation, computer disks, tapes or other forms of electronic storage, Company credit cards (including telephone credit cards), tools, equipment, keys, identification, software, computer access codes, disks and instructional manuals, Company issued IPhone and all other property prepared by, or for, or belonging to the Company.  Employee further agrees that he will not retain any documents or other property belonging to Company.
B.    By signing this Agreement, Employee affirms that Employee either (1) has no Company property remaining in his possession or control or, (2) Employee has provided the Company a list of IT devices and the amount he will tender for each item. 
VIII.    COOPERATION
Employee shall cooperate with the Company in effecting a smooth transition, and shall timely provide such information as the Company may reasonably request regarding operations and information within Employee’s knowledge while Employee was employed by the Company. Employee shall cooperate with the Company regarding litigation in which he is a witness, named defendant or decision maker while serving in his role as an Executive Officer of the Company. Company shall pay and/or reimburse Employee for all reasonable out-of-pocket expenses should cooperation in a judicial matter or investigation be required.  Additionally, should cooperation require legal preparation of Employee, such legal fees shall be paid for by the Company.  Should Employee select counsel on his own, he shall first seek approval from the General Counsel of the Company.   
IX.    RE-EMPLOYMENT
Employee hereby forever gives up, waives and releases any right to be hired, employed, recalled or reinstated by the Company or any affiliate of the Company.
X.    NON-DISPARAGEMENT
A.    Employee shall not voluntarily make any negative statements orally or in writing about Employee’s employment with the Company, about the Company or its affiliates or any of its employees or products, to anyone 

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other than to the EEOC or any similar state agency, Employee’s immediate family, and Employee’s legal representatives or financial advisors.  Nothing herein shall prevent Employee from testifying truthfully in a legal proceeding or governmental administrative proceeding.  Employee may indicate on employment applications that Employee was employed by the Company, Employee’s duties, length of employment, and salary.
B.    The Company’s officers and directors shall not voluntarily make any negative statements orally or in writing about Employee or about Employee’s employment with the Company to anyone other than to the EEOC or any similar state agency and the Company’s legal representatives.  Nothing herein shall prevent the Company’s officers and directors from testifying truthfully in a legal proceeding or governmental administrative proceeding.
XI.    NON-SOLICITATION
Employee agrees that, during his period of employment and the period beginning on his Retirement Date and ending twelve (12) months following the Retirement Date, Employee shall not directly or indirectly contact, approach or solicit for the purpose of offering employment to, or directly or indirectly actually hire, any person employed by the Company or its affiliates (or who was employed by the Company or its affiliates during the six (6) month period immediately prior to such solicitation or hire), without the prior written consent of the Company. 
XII.    SEVERABILITY
In the event that any provision(s) of this Agreement is found to be unenforceable for any reason whatsoever, the unenforceable provision shall be considered to be severable, and the remainder of this Agreement shall continue in full force and effect.
XIII.    BINDING EFFECT
This Agreement shall be binding upon and operate to the benefit of Employee, the Company, the Released Parties, and their successors and assigns.
XIV.    WAIVER
No waiver of any of the terms of this Agreement shall constitute a waiver of any other terms, whether or not similar, nor shall any waiver be a continuing waiver.  No waiver shall be binding unless executed in writing by the party making the waiver.  The Company or Employee may waive any provision of this Agreement intended for its/his/her benefit, but such waiver shall in no way excuse the other from the performance of any of its/his/her other obligations under this Agreement.
XV.    GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio, without regard to the principles of conflicts of law, except to the extent those laws are preempted by federal law.
XVI.    SUBSEQUENT MODIFICATIONS
The terms of this Agreement may be altered or amended, in whole or in part, only upon the signed written agreement of all Parties to this Agreement.  No oral agreement may modify any term of this Agreement.
XVII.    ENTIRE AGREEMENT
This Agreement constitutes the sole and entire agreement of the Parties with respect to the subject matter hereof, and supersedes any and all prior and contemporaneous agreements, promises, representations, negotiations, and understandings of the Parties, whether written or oral.  There are no agreements of any nature whatsoever among the parties except as expressly stated herein.
XVIII.    ATTORNEYS’ FEES AND COSTS
This Section XVIII shall not apply to any litigation arising out of a challenge to the validity of this Agreement under the ADEA, or any litigation in which the validity of this Agreement under the ADEA is an issue.  In the event of 

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litigation arising out of any other alleged breach of this Agreement, the prevailing party shall be entitled to an award of its reasonable attorneys’ fees and costs.
XIX.    SECTION 409A
The Parties acknowledge that Employee shall incur a “separation from service,” within the meaning of Section 409A of the Code (“Section 409A”), no later than the Retirement Date.  Notwithstanding anything in this Agreement to the contrary, if Employee is considered a “specified employee” (as defined in Section 409A), any amounts paid or provided under this Agreement shall, to the extent necessary in order to avoid the imposition of a penalty tax on Employee under Section 409A, be delayed for six months after Employee’s “separation from service” within the meaning of Section 409A, and the accumulated amounts shall be paid in a lump sum within ten (10) calendar days after the end of the six (6)-month period.  If Employee dies during the six-month postponement period prior to the payment of such accumulated amounts, the payments which are deferred on account of Section 409A shall be paid to the personal representative of Employee’s estate within 60 calendar days after the date of Employee’s death.  For purposes of this Agreement, each amount to be paid or benefit to be provided to Employee pursuant to this Agreement shall be construed as a separate identified payment for purposes of Section 409A.  All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A to the extent applicable, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the period of time specified in this Agreement, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense will be made no later than the last calendar day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement or in kind benefits is not subject to liquidation or exchange for another benefit.
	
			
	 
	 
	CLEVELAND-CLIFFS INC.

	 
	 
	/s/ Maurice D. Harapiak

	 
	 
	Executive Vice President, Human Resources

	 
	 
	 

	 
	 
	 

	Date:  21 Nov 2017
	 
	/s/ P. Kelly Tompkins

	 
	 
	P. Kelly Tompkins

	
				
	STATE OF OHIO
	)
	 
	 

	 
	)
	SS.
	 

	COUNTY OF CUYAHOGA
	)
	 
	 

	 
	 
	 
	 

	On this 21st day of November, 2017, before me personally appeared P. Kelly Tompkins, to me known to be the person described in and who executed this Severance Agreement and acknowledged that he executed the same as his free act and deed.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the County and State aforesaid, the day and year first above written.

	 
	 
	 
	/s/ Jason S. Veloso

	 
	 
	 
	Notary Public

	My Commission Expires:
	N/A
	 
	 

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RELEASE
Before signing this Release (the “Release”), you are advised to consult with an attorney.  Your signature must be notarized.
This Release is entered into knowingly and voluntarily on the date specified on the signature page hereto by P. Kelly Tompkins (“Employee”), in favor of Cleveland-Cliffs Inc. and its affiliates identified in Section II.A below (collectively, the “Company”).  
RECITALS
A.Employee and the Company previously entered into that certain Severance Agreement (the “Severance Agreement”).
B.Employee’s employment as the Executive Vice President-Chief Operations Officer of the Company terminated effective as of December 31, 2017 (the “Retirement Date”).
C.Employee is entitled to certain “Payments” (as each such term is defined in the Severance Agreement) subject to, among other things, Employee’s execution and non-revocation of this Release.
D.Employee and the Company desire to settle fully and finally any and all differences between them which have arisen, or may arise, out of the employment relationship and/or the termination of that relationship in the future.
AGREEMENT
I.    REPRESENTATIONS AND WARRANTIES
Employee understands, acknowledges and agrees that:
		
	•
	Employee has the sole right and exclusive authority to execute this Release. 

		
	•
	The Company and the Plan are not obligated to pay, and will not pay, to Employee any Payment until this Release has become effective.

		
	•
	Employee signs this Release knowingly and voluntarily, in order to induce Company to provide the Payments.

		
	•
	Employee has not sold, assigned, transferred, conveyed or otherwise disposed of any of the claims, demands, obligations or causes of action referred to in this Release.

		
	•
	No other person or entity has an interest in the claims, demands, obligations or causes of action referred to in this Release.

		
	•
	The Payments that Employee will receive in exchange for signing this Release are in addition to anything of value to which Employee is already entitled.

		
	•
	The Payments provided for in the Agreement are the only consideration that Employee ever will receive from the Company or any Released Parties (as defined below) for any and all claims, demands, obligations or causes of action released in this Release.

		
	•
	This Release and its terms shall not be construed as an admission of any liability whatsoever on the part of the Company or any other Released Parties described in this Release, by which/whom any liability is and always has been expressly denied.

		
	•
	As of the date of execution of this Release, Employee has not filed any administrative charges or lawsuits arising out of or relating to his employment with the Company or the separation of that employment.  

		
	•
	As of the date of execution of this Release, Employee has no work-related injury and is medically stationary with no impairment of earning capacity. 

II.    RELEASE
A.    Employee, for himself, and his marital community (if any), agents, heirs, executors, administrators, and assigns, hereby knowingly and voluntarily fully releases and forever discharges from any and all agreements, debts, claims, demands, actions, judgments, causes of action, and liabilities of every kind or nature, known or unknown, 

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that Employee, individually or as a member of a class, ever had or now has, the following (referred to as the “Released Parties”):
		
	•
	Cleveland-Cliffs Inc.

		
	•
	Cliffs Natural Resources Inc.;

		
	•
	Northshore Mining Company;

		
	•
	Silver Bay Power Company;

		
	•
	Tilden Mining Company LC;

		
	•
	Empire Iron Mining Partnership;

		
	•
	Cliffs Mining Company;

		
	•
	Hibbing Taconite Company Joint Venture;

		
	•
	United Taconite LLC;

		
	•
	The Cleveland-Cliffs Iron Company;

		
	•
	Cliffs Mining Services Company;

		
	•
	Lake Superior & Ishpeming Railroad Company;

		
	•
	Cliffs International Management Company LLC;

		
	•
	Cliffs Sales Company;

		
	•
	Cliffs Natural Resources Exploration Ltda.;

		
	•
	Cliffs Natural Resources Pty Ltd;

		
	•
	All affiliates of Cleveland-Cliffs Inc. not already listed above, including any corporation or other entity which is controlled by or under common control with Cleveland-Cliffs Inc., or which is in the same affiliated service group or otherwise required to be aggregated with Cleveland-Cliffs Inc. under Sections 414 or 1563 of the Internal Revenue Code;

		
	•
	All current or former owners, officers, directors, shareholders, members, employees, managers, agents, attorneys, partners and insurers of the above entities; and

		
	•
	The predecessors, successors, and assigns of the above entities and individuals and the spouses, children, and family members of the individuals.

B.    Without limiting the generality of this Release, Employee acknowledges and agrees that this Release is intended to bar every claim, demand, and cause of action, including without limitation any and all claims arising under:
		
	•
	The federal Civil Rights Acts of 1866, 1871, 1964 and 1991 and all similar state civil rights statutes; 

•The Employee Retirement Income Security Act of 1974;
•The Fair Labor Standards Act; 
•The Rehabilitation Act of 1973; 
•The Occupational Safety and Health Act;
•The Mine Safety and Health Act;
•The Health Insurance Portability and Accountability Act;
•The Age Discrimination in Employment Act;
•The Older Workers Benefit Protection Act;
•The Americans with Disabilities Act;
•The National Labor Relations Act;
•The Family and Medical Leave Act; 
•The Equal Pay Act;
•The Worker Adjustment and Retraining Notification Act;
•The Lilly Ledbetter Fair Pay Act;
•The Ohio Civil Rights Act; 
•State wage payment statutes;
•State wage and hour statutes;
•State employment statutes; 
•Any statutes regarding the making and enforcing of contracts;
•Any whistleblower statute; and 
•All similar provisions under all other federal, state and local laws.
C.    Without limiting the generality of this Release, Employee further acknowledges and agrees that this Release is intended to bar all equitable claims and all common law claims, including without limitation claims of or for:
•Breach of an express or an implied contract;

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•Breach of the covenant of good faith and fair dealing; 
		
	•
	Unpaid wages, salary, commissions, vacation or other employee benefits;

•Unjust enrichment;
•Negligent or intentional interference with contractual relations; 
•Negligent or intentional interference with prospective economic relations; 
•Estoppel; 
•Fraud;
•Negligence;
•Negligent or intentional misrepresentation;
•Personal injury;
•Slander;
•Libel;
•Defamation;
•False light; 
•Injurious falsehood;
•Invasion of privacy; 
•Wrongful discharge; 
•Failure to hire;
•Retaliatory discharge;
•Constructive discharge; 
•Negligent or intentional infliction of emotional distress;
•Negligent hiring, supervision or retention;
•Loss of consortium; and
•Any claims that may relate to drug and/or alcohol testing.
D.    Employee further understands, acknowledges and agrees that this Release is a general release, and that Employee further waives and assumes the risk of any and all claims which exist as of this date, including those of which Employee does not know or suspect to exist, whether through ignorance, oversight, error, negligence, or otherwise, and which, if known, would materially affect Employee’s decision to sign this Release.
E.    Without limiting the generality of the Release provided for above, Employee expressly waives and releases any right, claim or entitlement to any payments or benefits under any agreement entered into by and between the Company and Employee that provides for the provision of any severance payments or benefits upon the termination of his employment by the Company beyond what is expressly provided for in this Agreement, including without limitation that certain Change in Control Severance Agreement between the Parties (the “CIC Agreement”).  The Parties further agree that the CIC Agreement is hereby terminated effective December 31, 2017 in its entirety notwithstanding any survivorship provisions of the CIC Agreement.
F.    Without limiting the generality of the Release provided for above, Employee expressly waives and releases any right to treatment as an active employee and shall be treated as a Retiree under the terms of the various outstanding Agreements.
G.    Employee further understands, acknowledges and agrees that this Release waives any right Employee has to recover damages in any lawsuit brought by Employee as well as in any lawsuit brought on his behalf by any other person or entity, including without limitation by the Equal Employment Opportunity Commission (EEOC) or any similar state agency.  Employee is not, however, waiving the right to file a charge with the EEOC or any similar state agency.
H.    This Release shall not be interpreted to release or require the release of the Company or the Released Parties from any:
		
	•
	Claims for Payments under the Agreement; or

		
	•
	Claims for benefits under any pension plan of the Company; or

		
	•
	Claims arising out of acts or practices which occur after the execution of this Release.

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III.    REPRESENTATION OF UNDERSTANDING OF RELEASE
Employee acknowledges that Employee has had the opportunity to consult an attorney of Employee’s own choosing before entering into this Release.  Employee represents and warrants that Employee has read all of the terms of this Release; and that Employee fully understands and voluntarily accepts these terms.  Employee further acknowledges and agrees that Employee has been given a reasonable period of time within which to consider this Release.
IV.    FEDERAL AGE DISCRIMINATION CLAIMS
Employee understands and agrees that a waiver of claims under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, (29 U.S.C.  621, et seq.) (the “ADEA”) is not effective unless it is “knowing and voluntary,” and that the ADEA imposes certain minimum requirements for a waiver to be knowing and voluntary.  Employee acknowledges and agrees that Employee is knowingly and voluntarily giving up any rights or claims for relief Employee may have under the ADEA regarding the Company’s conduct or the conduct of any Released Parties.  However, Employee acknowledges and agrees that Employee is not giving up the right to challenge the validity of this Release under the ADEA.  
		
	V.
	TIME TO CONSIDER AND CANCEL RELEASE; EFFECTIVE DATE

A.    Employee acknowledges and agrees that he has been given a period of at least twenty-one (21) calendar days from the receipt of this Release to decide whether to sign it and is advised to consult with an attorney before doing so.  Employee is not to sign this Release unless Employee understands its provisions and is doing so voluntarily.
B.    This Release shall be signed and notarized no earlier than the calendar day following Employee’s Retirement Date, but no later than twenty-one (21) calendar days following the Employee’s Retirement Date. Further, this Release shall be delivered to (or postmarked for delivery to) Kurt Holland, Director of Compensation and Benefits, Cleveland-Cliffs Inc., 200 Public Square, Suite 3300, Cleveland, Ohio 44114, no later than twenty-one (21) calendar days after Employee’s Retirement Date.
C.    After Employee has signed this Release, Employee has seven (7) calendar days to change his mind and notify the Company in writing that Employee has canceled this Release.  If Employee so cancels this Release, this Release will be null and void, and will have no force or effect.  Written notice of a cancellation of this Release must actually be received by the Company at the following address and must be postmarked within the time frame described above in order to be effective: Kurt Holland, Director of Compensation and Benefits, Cleveland-Cliffs Inc., 200 Public Square, Suite 3300, Cleveland, Ohio 44114
D.    If Employee (1) signs, notarizes and delivers this Release within the time frames and in accordance with the provisions of Section VI.B; and (2) does not cancel or revoke the Release within the time frames and in accordance with the provisions of Section VI.C, this Release shall become effective on the eighth calendar day after Employee signed it (the “Effective Date”).
E.    Employee understands that if he revokes this Release, it shall not be effective or enforceable and Employee will not become a Participant in the Plan and will not receive any Payments.
VI.    SEVERABILITY
In the event that any provision(s) of this Release is found to be unenforceable for any reason whatsoever, the unenforceable provision shall be considered to be severable, and the remainder of this Release shall continue in full force and effect.
VII.    BINDING EFFECT
This Release shall be binding upon and operate to the benefit of Employee, the Company, the Released Parties, and their successors and assigns.

11

VIII.    WAIVER
No waiver of any of the terms of this Release shall constitute a waiver of any other terms, whether or not similar, nor shall any waiver be a continuing waiver.  No waiver shall be binding unless executed in writing by the party making the waiver.  The Company or Employee may waive any provision of this Release intended for its/his/her benefit, but such waiver shall in no way excuse the other from the performance of any of its/his/her other obligations under this Release.
IX.    GOVERNING LAW
This Release shall be governed by and construed in accordance with the laws of the State of Ohio, without regard to the principles of conflicts of law, except to the extent those laws are preempted by federal law.
X.    SUBSEQUENT MODIFICATIONS
The terms of this Release may be altered or amended, in whole or in part, only upon the signed written agreement of all Parties to this Release.  No oral agreement may modify any term of this Release.
XI.    ENTIRE AGREEMENT
This Release constitutes the sole and entire agreement of the Parties with respect to the subject matter hereof, and supersedes any and all prior and contemporaneous agreements, promises, representations, negotiations, and understandings of the Parties, whether written or oral.  There are no agreements of any nature whatsoever among the parties except as expressly stated herein.
XII.    ATTORNEYS’ FEES AND COSTS
This Section XII shall not apply to any litigation arising out of a challenge to the validity of this Release under the ADEA, or any litigation in which the validity of this Release under the ADEA is an issue.  In the event of litigation arising out of any other alleged breach of this Release, the prevailing party shall be entitled to an award of its reasonable attorneys’ fees and costs.
XIII.    SECTION 409A
The Parties acknowledge that Employee shall incur a “separation from service,” within the meaning of Section 409A of the Code (“Section 409A”), no later than the Retirement Date.  Notwithstanding anything in this Release to the contrary, if Employee is considered a “specified employee” (as defined in Section 409A), any amounts paid or provided under this Release shall, to the extent necessary in order to avoid the imposition of a penalty tax on Employee under Section 409A, be delayed for six months after Employee’s “separation from service” within the meaning of Section 409A, and the accumulated amounts shall be paid in a lump sum within ten (10) calendar days after the end of the six (6)-month period.  If Employee dies during the six-month postponement period prior to the payment of such accumulated amounts, the payments which are deferred on account of Section 409A shall be paid to the personal representative of Employee’s estate within 60 calendar days after the date of Employee’s death.  For purposes of this Release, each amount to be paid or benefit to be provided to Employee pursuant to this Release shall be construed as a separate identified payment for purposes of Section 409A.  All reimbursements and in-kind benefits provided under this Release shall be made or provided in accordance with the requirements of Section 409A to the extent applicable, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the period of time specified in this Release, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense will be made no later than the last calendar day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement or in kind benefits is not subject to liquidation or exchange for another benefit.

12

	
			
	 
	 
	CLEVELAND-CLIFFS INC.

	 
	 
	/s/ Maurice D. Harapiak

	 
	 
	Maurice D. Harapiak

	 
	 
	Executive Vice President, Human Resources

	 
	 
	 

	 
	 
	 

	Date:  21 Nov 2017
	 
	/s/ P. Kelly Tompkins

	 
	 
	P. Kelly Tompkins

	
				
	STATE OF OHIO
	)
	 
	 

	 
	)
	SS.
	 

	COUNTY OF CUYAHOGA
	)
	 
	 

	 
	 
	 
	 

	On this 21st day of November, 2017, before me personally appeared P. Kelly Tompkins, to me known to be the person described in and who executed this Release and acknowledged that he executed the same as his free act and deed.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the County and State aforesaid, the day and year first above written.

	 
	 
	 
	/s/ Jason S. Veloso

	 
	 
	 
	Notary Public

	My Commission Expires:
	N/A
	 
	 

13Exhibit

	
	
	CLEVELAND-CLIFFS INC. HAS REQUESTED THAT THE OMITTED PORTIONS OF THIS DOCUMENT, WHICH ARE INDICATED BY ASTERISKS, BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934

EXHIBIT 10.59 
AMENDED AND RESTATED PELLET SALE AND PURCHASE AGREEMENT
This Amended and Restated Pellet Sale and Purchase Agreement (the “Agreement”), entered into, dated and effective as of December 31, 2015 (the "Effective Date"), by and among The Cleveland-Cliffs Iron Company, an Ohio corporation ("CCIC"), Cliffs Mining Company, a Delaware corporation (“Mining”) (“CCIC” and “Mining” being collectively referred to herein as “Cliffs”) and AK Steel Corporation, a Delaware corporation ("AK Steel").  AK Steel and Cliffs may singularly be referred to as Party and collectively Parties.
RECITALS
WHEREAS, Cliffs, Cliffs Sales Company and AK Steel  are parties to that certain Pellet Sale, Purchase and Trade Agreement dated January 1, 2006, as amended (the “Original Contract”), pursuant to which Cliffs and Cliffs Sales Company provide AK Steel with iron ore pellets in connection with AK Steel’s steel manufacturing and processing activities in Dearborn Michigan (“AK Dearborn”); and
WHEREAS, Cliffs Sales Company has merged into Mining; and
WHEREAS, there have been six amendments and term sheets amending the Original Contract and a change in ownership interest since the time the Original Contract was executed; and
WHEREAS, the Parties desire to conform all the amendments and term sheets into one comprehensive document that correctly sets forth the relationship between the Parties.
NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the Parties agree as follows:
Section 1. -  Definitions.
The terms quoted in the above parentheses of the first introductory paragraph of this Agreement and the WHEREAS clauses, other terms quoted throughout this Agreement, and the terms defined below in this Section 1 shall have the meanings assigned to them for purposes of this Agreement.
(a).    The word "ton", as used herein, shall mean a gross ton of 2,240 pounds avoirdupois natural weight.

	
	
	CLEVELAND-CLIFFS INC. HAS REQUESTED THAT THE OMITTED PORTIONS OF THIS DOCUMENT, WHICH ARE INDICATED BY ASTERISKS, BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934

(b).    The word "pellets", as used herein, shall mean a product obtained by pelletizing iron ore or iron ore concentrates, suitable for iron making in blast furnaces.
(c).    The words "Tilden Flux Pellets", as used herein, shall mean pellets to which have been added sufficient quantities of limestone and dolomite so as to increase the percentage of *** content of the pellet to a minimum of *** and the percentage of *** content of the pellet to a minimum of *** (unless such specifications are changed pursuant to Section 4), such pellets being those currently produced at the Tilden Mining Company L.C. ("Tilden"), located in National, Michigan.
(d).    The words "iron unit", as used herein, shall mean one percent (1%) iron contained in a ton.
(e).    The word "year", as used herein, shall mean a calendar year.
Section 2. - Sale and Purchase.
(a).    Cliffs shall sell and by these presents does sell and shall deliver to AK Steel, the tonnages and grades of Tilden Flux Pellets or other mutually agreed pellets (the Tilden Flux Pellets and any other mutually agreed pellets collectively referred to herein as “Cliffs Pellets”) on the terms and conditions as hereinafter provided.  AK Steel shall purchase and by these presents does purchase and shall receive and pay for such tonnages and grades of Cliffs Pellets on the terms and conditions as hereinafter provided.
Section 3. - Tonnage/Iron Units.
(a).    During the term of this Agreement, Cliffs shall sell to AK Steel and AK Steel shall purchase from Cliffs *** AK Steel’s annual iron ore pellet tonnage *** at AK Dearborn such *** being *** to AK Dearborn’s *** iron ore pellet tonnage ***, based on AK Dearborn’s operating configuration as of the Effective Date of this Agreement, for consumption in AK Dearborn’s iron and steelmaking facilities in any year (“AK Steel’s Annual Pellet Tonnage Requirements”).
(b).    For the years 2015 through and including ***, Cliffs shall supply to AK Steel and AK Steel shall purchase from Cliffs AK Steel’s Annual Pellet Tonnage Requirements at AK Dearborn, with a minimum annual supply and purchase obligation of *** million tons.

	
	
	CLEVELAND-CLIFFS INC. HAS REQUESTED THAT THE OMITTED PORTIONS OF THIS DOCUMENT, WHICH ARE INDICATED BY ASTERISKS, BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934

Section 4. - Notification and Nomination.
(a).    With respect to the tonnage of Cliffs Pellets to be purchased by AK Steel for the year 2015 through and including *** (and during any years after *** in the event the Agreement is extended pursuant to Section 16), on or before October 1 of the prior year thereto, AK Steel shall notify Cliffs in writing of the preliminary total number of tons which AK Steel shall purchase from Cliffs for AK Steel Dearborn.
(b).    With respect to the preliminary tonnage nominations as provided for in Section 4(a) above, on or before April 1 of the then current year, AK Steel may, by written notification to Cliffs, adjust its preliminary tonnage nominations by not more than ***, up or down.  If, by April 1 of the then current year, AK Steel shall have adjusted its preliminary tonnage nominations, then such adjusted tonnage nominations shall be deemed their final tonnage nominations for such year, and AK Steel shall be obligated to purchase such tonnage in accordance with such final tonnage nominations.
(c).    If, however, AK Steel has not adjusted its preliminary tonnage nomination as provided for above, then on or before June 1 of the then current year, AK Steel may, by written notification to Cliffs, adjust its preliminary tonnage nominations by not more than ***, up or down.  Such adjusted tonnage nominations shall be deemed to be AK Steel’s final tonnage nominations for such year, and AK Steel shall be obligated to purchase such tonnage with Cliffs in accordance with such final tonnage nominations.
(d).    If no adjustment is made on or before June 1, then the preliminary tonnage nomination, as provided above, shall be deemed to be AK Steel’s final tonnage nominations for such year, and AK Steel shall be obligated to purchase such tonnages with Cliffs in accordance with such preliminary tonnage nominations.
Section 5. - Price and Adjustments.
(a).    Base Price.  The 2014 price for Cliffs Pellets was $*** per iron unit F.O.B. Upper Lake Docks (as defined below).
(b).    Adjustment to Price.  The price for the Cliffs Pellets shall be adjusted upward or downward as the case may be by the annual percentage change in four adjustment factors (“Price Adjustment”).  In order to determine the Price Adjustment to be paid for the Cliffs Pellets for each contract year, the price per iron unit for the relevant contract year shall be increased or decreased by an amount equal to the sum of the adjustment factors (i), (ii), (iii) and (iv) below:

	
	
	CLEVELAND-CLIFFS INC. HAS REQUESTED THAT THE OMITTED PORTIONS OF THIS DOCUMENT, WHICH ARE INDICATED BY ASTERISKS, BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934

(i).    Twenty-five percent (25%) of the amount obtained by multiplying the as then adjusted price per iron unit for Cliffs Pellets for the year in determination by a fraction (as converted to a decimal) determined by, using the year to year percentage change in the  *** (“***”) for such year (“Year X”) calculated as follows:
*** Year X  = *** Year (X-1) * (*** Price Year X / *** Price Year (X-1)) 
Where 
*** Price Year (X-1) = Average Quarterly Price for the year prior to the year of shipping
*** Price Year X  = Average  Quarterly Price for the year of shipping
Quarterly Price = *** Fe - Freight Credit + Pellet Premium
*** Fe is the daily average price for a three month period that ends one (1) month before the beginning of the new quarter (i.e. September, October, and November 2014 for the quarter beginning January 1, 2015, etc.). 
The Pellet Premium shall be a fixed price of $*** per dry metric ton ($*** per dry gross ton).
Freight Credit shall be based on the *** daily average freight price for the three month period that ends one (1) month before the beginning of the new quarter (i.e. September, October, and November 2014 for the quarter beginning January 1, 2015).
(A)    If for any reason the *** Fe is not published, then the *** shall be substituted with the following formula.  Such formula shall be adjusted on a quarterly basis:
(1)    Average *** Substitute (“*** Year X”), as defined below (collectively “Y”).
*** Year X = *** Year (X-1) * (*** Pellet Price Year X / *** Pellet Price Year (X-1)) 
*** Pellet Price is the average annual pellet price per metric ton published by *** in its press release reporting on such year’s financial performance, in US dollars.
(2)    The sum of X and Y shall equal the current year’s ***, or put arithmetically:

	
	
	CLEVELAND-CLIFFS INC. HAS REQUESTED THAT THE OMITTED PORTIONS OF THIS DOCUMENT, WHICH ARE INDICATED BY ASTERISKS, BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934

X + Y = Current Year’s ***.
In the event there is no *** for the previous year, than the previous year’s *** shall be substituted in the mechanism herein:
***Year X  = *** (x-1) * (*** Pellet Price Year X / *** Pellet Price Year (X-1))
(B)    For the year 2015, and for each year thereafter through and including the year ***, if either Cliffs or AK Steel determines that the *** Fe is not recognized as a common industry recognized international market price index for iron ore used to determine supply contract prices then either party may request a negotiation to define another method to determine an international market price for iron ore and a substitute for the *** Fe.  The Parties have seventy-five (75) days upon written notice sent by initiating party to the other party to mutually define and agree on a new recognized international market price for iron ore.  The parties may extend the negotiation period upon mutual written consent. If agreement is not reached during the negotiation period with applicable extensions then the arbitration language in the Current Agreement shall govern.
Plus;
(ii) twenty-five percent (25%) of the amount obtained by multiplying the as then adjusted price per iron unit for Cliffs Pellets for the year in determination by the fraction (as converted to a decimal) determined by,
(y)    dividing the numerator, which is the amount by which the Producer Price Index (“PPI”) - ***, published by the United States Department of Labor (the "PPI ***") for the calendar year in determination changes (up or down) from the immediately preceding calendar years PPI ***;
(z)    by the denominator, which is the immediately preceding calendar year’s PPI ***; 
Plus;
(iii) twenty-five percent (25%) of the amount obtained by multiplying the as then adjusted price per iron unit for Cliffs Pellets for the year in determination by the fraction (as converted to decimal) determined by

	
	
	CLEVELAND-CLIFFS INC. HAS REQUESTED THAT THE OMITTED PORTIONS OF THIS DOCUMENT, WHICH ARE INDICATED BY ASTERISKS, BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934

(y)    dividing the numerator, which is the amount by which the PPI - ***, published by the United States Department of Labor (the "PPI ***") for the calendar year in determination changes (up or down) from the immediately preceding calendar years PPI ***;
(z)    by the denominator, which is the immediately preceding calendar year’s PPI ***;
Plus;
(iv) twenty-five percent (25%) of the amount obtained by multiplying the as then adjusted price per iron unit for Cliffs Pellets for the year in determination by the fraction (as converted to decimal) determined by
(y)    dividing the numerator, which is the amount by which the PPI - ***, published by the United States Department of Labor (the "PPI ***") for the calendar year in determination changes (up or down) from the immediately preceding calendar years PPI ***;
(z)    by the denominator, which is the immediately preceding calendar year’s PPI ***.
An example of the calculation of the adjustment under this Section 5(b) is included as Exhibit I to this Agreement.
(c). Timing of Price Adjustments And True-Ups.  Price Adjustments may require true-up payments ("True-Ups") based upon estimated and actual changes in the published pricing factors and indices specified in Section 5(b), at intervals set forth below.
(i) Price Adjustments.  Price Adjustments shall be made as follows, and each Price Adjustment shall have prospective effect until the next Price Adjustment:
(A) Initial Adjustment. On or before December 15, Cliffs shall calculate and communicate to AK Steel in writing the Adjusted Price effective January 1 of the succeeding year ("Initial Adjustment").  The Initial Adjustment shall be calculated utilizing (1) the *** (“***”) for September, October and November as compared to the *** for the immediately preceding *** Year; and (2) the PPIs for the succeeding year as compared to the PPIs for the current year.
(B) March 15 Adjustment. On or before March 15, Cliffs shall calculate and communicate to AK Steel in writing the Adjusted Price effective April 1 (the "March 15 Adjustment").  The March 15 Adjustment shall 

	
	
	CLEVELAND-CLIFFS INC. HAS REQUESTED THAT THE OMITTED PORTIONS OF THIS DOCUMENT, WHICH ARE INDICATED BY ASTERISKS, BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934

be calculated utilizing (1) the *** for the immediately preceding months of September through February, as compared to the *** for the immediately preceding *** Year; and (2) the PPIs for the current year as compared to the PPIs for the immediately preceding year.
(C) June 15 Adjustment. On or before June 15, Cliffs shall calculate and communicate to AK Steel in writing the Adjusted Price effective July 1 (the "June 15 Adjustment").  The June 15 Adjustment shall be calculated utilizing (1) the *** for the immediately preceding months of September through May, as compared to the *** for the immediately preceding *** Year; and (2) the PPIs for the current year as compared to the PPIs for the immediately preceding year .
(D) September 10 Adjustment. On or before September 15, Cliffs shall calculate and communicate to AK Steel in writing the Adjusted Price effective from August 1 through the remainder of the calendar year (the "September 15 Adjustment").  The September 15 Adjustment shall be calculated utilizing (1) the *** for the immediately preceding *** Year, as compared to the *** for the prior *** Year; and (2) the PPIs for the current year as compared to the PPIs for the immediately preceding year.
(ii).    True Ups.  There shall be two true ups resulting from the publishing of final data for any calendar year: (A) the *** True Up; and (B) the PPI True Up.
(A)    *** True Up.  The *** True Up shall be based on retroactive application of the Adjusted Price determined by the September 10 Adjustment to all calendar year-to-date shipments of Cliffs Pellets.  Cliffs shall calculate and deliver to AK Steel an invoice stating whether such calculation results in a debit or credit to AK Steel ("*** True Up Invoice").  The *** True Up Invoice shall be delivered on or before September 15 each year.  Any amounts due to or from AK Steel as a result of the *** True Up Invoice shall be due and payable on or before September 30 of the then current year.
(B)    PPI True Up.  Typically in May of each year, the United States Department of Labor publishes the final PPIs for the immediately preceding calendar year. Within 15 days of publication of such final PPIs (regardless of when such publication actually occurs), Cliffs shall calculate the final Adjusted Price for the immediately preceding year and reconcile the final Adjusted Price with the price paid by AK Steel for all Cliffs Pellets purchased during the immediately preceding calendar year, and deliver to AK Steel an invoice stating whether such calculation 

	
	
	CLEVELAND-CLIFFS INC. HAS REQUESTED THAT THE OMITTED PORTIONS OF THIS DOCUMENT, WHICH ARE INDICATED BY ASTERISKS, BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934

results in a debit or credit to AK Steel ("PPI True Up Invoice").  Any amounts due to or from AK Steel as a result of the PPI True Up Invoice shall be due and payable fifteen (15) days after receipt by AK Steel of such PPI True Up Invoice.
(iii)    Basis of PPls. Prior to the publication of final PPIs, the most recent estimated annual PPls published by Global Insights (or such other reputable publisher of PPI forecasts as is mutually agreed upon by the parties in writing) shall be used to calculate the Price Adjustments and *** True Up.
(iv)    No Interest on True Up Amounts.  *** True Up Invoice payments and PPI True Up Invoice payments are not due and payable before the dates prescribed above.  As a result, interest shall not accrue on any *** True Up Invoice or PPI True Up Invoice.
Section 6. - Delivery, Credit and Payment.
(a).    For all cargoes of Cliffs Pellets shipped to AK Steel beginning as of the date hereof, Cliffs shall retain title to the cargoes of Cliffs Pellets so shipped until AK Steel makes payment for the Cliffs Pellets.  AK Steel shall pay Cliffs for each cargo of Cliffs Pellets shipped during the month by wire transfer to Cliffs on the first business day after the 14th day of the month following loading of Cliffs Pellets at the Port of Marquette, located in Marquette, Michigan, or other appropriate ore dock in the case of (“Upper Lake Docks”).  Title to the Cliffs Pellets for each such cargo of Cliffs Pellets shipped shall pass to AK Steel simultaneously with receipt of payment by Cliffs for each such cargo.
(b).    In the event AK Steel shall fail to make prompt payment, Cliffs, in addition to all other remedies available to it in law or in equity, shall have the right, but not the obligation, to withhold further performance by it under this Agreement until all claims it may have against AK Steel under this Agreement are fully satisfied.
Section 7. - Grant of Security Interest.
(a).    AK Steel acknowledges and agrees that it is the intent of the parties that title to the Cliffs Pellets shall pass to AK Steel solely upon *** in accordance with the terms of this Agreement.  However, to secure the payment and performance of all obligations of AK Steel due to Cliffs pursuant to this Agreement, AK Steel hereby grants, pledges and assigns to Cliffs a purchase money security interest (“PMSI”) in all of AK Steel’s right, title and interest in and to the Cliffs Pellets to the extent that AK Steel takes possession of any Cliffs Pellets in any fashion prior to making payment as required under this Agreement as well as the proceeds of any of the Cliffs Pellets, including the proceeds of any insurance related thereto (collectively, the “Collateral”).

(b).    Upon delivery of any of the Collateral to AK Steel by Cliffs, the Collateral shall be located at the addresses set forth on Attachment A hereto.  AK Steel will deliver written notice to Cliffs at least thirty (30) days prior to any change in the locations of any of the Collateral.
(c).    The PMSI granted to Cliffs that attaches to a specific shipment of inventory shall automatically terminate upon the date of Cliffs’ receipt from AK Steel of payment in full for said shipment (the “PMSI Termination Date”).  Prior to the applicable PMSI Termination Date, the Collateral will at all times be free and clear of any lien, security interest, mortgage, charge or encumbrance created by or through AK Steel or any of its affiliates that is senior to the security interest granted to Cliffs pursuant to this Agreement.
(d).    AK Steel hereby authorizes Cliffs to file UCC financing statements and any amendments, modifications or continuation statements thereto, as Cliffs, in its sole discretion, deems necessary or advisable to perfect its security interest in the Cliffs Pellets granted hereunder, that describes the Collateral and to include any information required for the sufficiency or filing office acceptance of any such financing statements, amendments, modifications or continuation statements.  AK Steel covenants and agrees to (i) provide promptly any information requested by Cliffs for inclusion on such financing statements, amendments, modifications or continuation statements and to provide prompt notice of any change in such information and (ii) to take such further actions and duly execute and deliver such further documentation as Cliffs may request in order to fully protect its security interest in the Cliffs Pellets granted hereunder.
(e).    Prior to the applicable PMSI Termination Date, AK Steel will keep and preserve the Collateral in a commercially reasonable manner and will not use, sell or offer to sell, pledge or encumber, process, destroy or consume the Collateral.
(f).    AK Steel and Cliffs acknowledge that in the event of a default hereunder by AK Steel, Cliffs will have all the rights and remedies afforded a secured party under the Uniform Commercial Code as adopted in the State of Ohio with respect to the Collateral.
Section 8. - Analyses.
The Cliffs Pellets delivered hereunder will be sampled and analyzed by mine technicians or such independent chemists as may be mutually agreed upon, and said analyses shall be final and the weighted average of all such 

analyses of each grade of Cliffs Pellets delivered hereunder shall constitute the basis of settlement hereunder for such grade of Cliffs Pellets.  The cost of sampling and analyzing by independent chemists, if requested by any party, shall be borne by the party requesting such sampling and analyzing.
Section 9. - Quality.
Cliffs Pellets, when loaded for shipment, will be consistent with the typical specifications and analysis limits set forth on Exhibit II.  Both parties acknowledge the need for defining measurement of product characteristic capabilities and quality system requirements.  The basis for agreement will be the use of statistical calculation of capabilities and a quality system based on ISO 9001:2000 requirements.
Section 10. - Shipments.
Within thirty (30) days prior to the first shipment of Cliffs Pellets of each year, Cliffs and AK Steel will establish a schedule of shipments for the Cliffs Pellets for such year, which schedule may be changed during such year by mutual agreement.  In the event Cliffs and AK Steel are unable to agree upon a shipping schedule, the Cliffs Pellets will be available for shipment in approximately equal amounts over the nine month period of April through December of each year during the term of this Agreement and shipment and delivery shall be made in accordance with such availability.
Section 11. - Weights.
Vessel bill of lading weight determined by certified railroad scale weights, certified belt scale weights or certified bin scale weights in accordance with the procedures in effect from time to time at each of the loading ports shall be accepted by the parties as finally determining the amounts of the Cliffs Pellets delivered to AK Steel pursuant to this Agreement.
Section 12. - Employment of Vessels or Railroad Cars.
AK Steel shall assume the obligation for arranging, providing and paying for the appropriate vessels for the transportation of all of the Cliffs Pellets delivered by Cliffs to AK Steel. 

Section 13. - Warranties.
THERE ARE NO WARRANTIES, EXPRESS OR IMPLIED, WHICH EXTEND BEYOND THE PROVISIONS OF THIS AGREEMENT, INCLUDING ANY WARRANTIES OF MRECHANTABILITY OR FITNESS FOR INTENDED PURPOSE.  All claims for substantial variance in quality of the Cliffs Pellets, as described herein, shall be deemed waived unless made in writing delivered to Cliffs within the thirty (30) calendar days after completion of discharge at port of discharge.  No claim will be entertained after the Cliffs Pellets have been consumed.  Each party shall afford the other party prompt and reasonable opportunity to inspect the Cliffs Pellets as to which any claim is made as above stated.  The Cliffs Pellets shall not be returned without prior written consent of Cliffs.  In no event shall Cliffs be liable for AK Steel’s cost of processing, lost profits, injury to good will or any other special or consequential damages.
Section 14. - Force Majeure.
Neither party hereto shall be liable for damages resulting from failure to produce, deliver or accept and pay for all or any of the Cliffs Pellets, as described herein, if and to the extent that such production, delivery or acceptance would be contrary to or would constitute a violation of any regulation, order or requirement of a recognized governmental body or agency, or if such failure is caused by or results directly or indirectly from acts of God, war, insurrections, interference by foreign powers, strikes, hindrances, labor disputes, labor shortages, fires, floods, embargoes, accidents, acts of terrorism, or uncontrollable delays at the mines, steel plant, on the railroads or docks or in transit, shortage of transportation facilities, disasters of navigation, or other causes, similar or dissimilar, if such other causes are beyond the control of the party charged with a failure to deliver or to accept and pay for the Cliffs Pellets.  A party claiming a force majeure shall give the other party prompt notice of the force majeure, including the particulars thereof and, insofar as known, the probable extent and duration of the force majeure.  To the extent a force majeure is claimed hereunder by a party hereto, such shall relieve the other party from fulfilling its corresponding agreement hereunder to the party claiming such force majeure, but only for the period and to the extent of the claimed force majeure, unless otherwise mutually agreed, to by the parties.  The party that is subject to a force majeure shall use commercially reasonable efforts to cure or remove the force majeure event as promptly as possible to resume performance of its obligations under this Agreement.

	
	
	CLEVELAND-CLIFFS INC. HAS REQUESTED THAT THE OMITTED PORTIONS OF THIS DOCUMENT, WHICH ARE INDICATED BY ASTERISKS, BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934

Section 15. - Notices.
All notices, consents, reports and other documents authorized and required to be given pursuant to this Agreement shall be given in writing and either personally served on an officer of the parties hereto to whom it is given or mailed, postage prepaid, or sent by electronic mail addressed as follows: 
	
	
	If to Cliffs:

	Cliffs Mining Company
200 Public Square, Suite 3300
Cleveland, Ohio  44114
Attention:  Executive Vice President, Global Commercial
Terrence.mee@cliffsnr.com
cc:  Assistant General Counsel Commercial
susanne.dickerson@cliffsnr.com

	If to AK Steel:

	AK Steel Corporation
9227 Centre Pointe Drive
West Chester, OH 45069
Attn: General Manager, Raw Materials Purchasing 
stephen.taylor@aksteel.com
cc:  Vice President - Engineering, Raw Materials & Energy
mo.reed@aksteel.com

provided, however, that any party may change the address to which notices or other communications to it shall be sent by giving to the other party written notice of such change, in which case notices and other communications to the party giving the notice of the change of address shall not be deemed to have been sufficiently given or delivered unless addressed to it at the new address as stated in said notice.
Section 16. - Term.
The initial term of this Agreement shall commence as of the Effective Date and continue in effect until ***.  The Agreement shall continue annually from and after *** for the obligation of AK Steel to purchase from Cliffs and Cliffs to sell to AK Steel all of AK Steel’s Annual Pellet Tonnage Requirements pursuant to Section 3(a) above. 
If either party desires to terminate this Agreement at the end of the initial term, or any year following ***, then such party shall deliver in writing notice to the other party no less than eighteen (18) months prior to the end of either (i) the initial term or (ii) *** of any year after *** (e.g. to terminate the Agreement at the end of the initial term notice must be received by *** or if for end of contract year *** then such notice must be received ***).

Section 17. - Amendment.
This Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.
Section 18. - Merger, Transfer and Assignment.
(a).    AK Steel shall not merge, consolidate or reorganize with any person, partnership, corporation or other entity unless the surviving or resulting person, partnership, corporation or other entity assumes in writing all of AK Steel’s obligations under this Agreement.  Any obligations required to be assumed by a surviving or resulting person, partnership, corporation or entity in accordance with this Section 18(b) shall be limited to the AK Steel obligations under this Agreement.  AK Steel shall not sell or transfer all or substantially all of its business to any other person, partnership, corporation, joint venture or other entity ("AK Steel Transferee") unless the AK Steel Transferee assumes in writing all of AK Steel’s obligations under this Agreement.
(b).    Cliffs shall not merge, consolidate or reorganize with any person, partnership, corporation or other entity unless the surviving or resulting person, partnership, corporation or other entity assumes in writing all of Cliffs' obligations under this Agreement.  Cliffs shall not sell or transfer all or substantially all of its iron ore business to any other person, partnership, corporation, joint venture or other entity ("Cliffs Transferee") unless the Cliffs Transferee assumes in writing all of Cliffs' obligations under this Agreement.
(c).    All the covenants, stipulations and agreements herein contained shall inure to the benefit of and bind the parties hereto and their respective successors, transferees and permitted assigns, and any of the latter's subsequent successors, transferees and permitted assigns.
Section 19. - Waiver.
No waiver of any of the terms of this Agreement shall be valid unless in writing.  No waiver of any breach of any provision hereof or default under any provisions hereof shall be deemed a waiver of any subsequent breach or default of any kind whatsoever.

Section 20. - Confidentiality
(a).    Cliffs and AK Steel acknowledge that this Agreement contains certain pricing, adjustment and term provisions which are confidential, proprietary or of a sensitive commercial nature and which would put Cliffs or AK Steel at a competitive disadvantage if disclosed to the public (the "Confidential Information").  Cliffs and AK Steel agree that all provisions of this Agreement shall be kept confidential and, without the prior written consent of the other party, shall not be disclosed to any party not a party to this Agreement except as required by law or governmental or judicial order and except that disclosure of the existence of this Agreement shall not be precluded by this Section 20.
(b).    If either party is required by law or governmental or judicial order or receives legal process or court or agency directive requesting or requiring disclosure of any of the Confidential Information contained in this Agreement, such party will promptly notify the other party prior to disclosure to permit such party to seek a protective order or take other appropriate action to preserve the confidentiality of such Confidential Information.  If either party determines to file this Agreement with the Securities and Exchange Commission ("Commission") or any other federal, state or local governmental or regulatory authority, or with any stock exchange or similar body, such determining party will use its best efforts to obtain confidential treatment of such Confidential Information pursuant to any applicable rule, regulation or procedure of the Commission and any applicable rule, regulation or procedure relating to confidential filings made with any such other authority or exchange.  If the Commission (or any such other authority or exchange) denies such party's request for confidential treatment of such Confidential Information, such party will use its best efforts to obtain confidential treatment of the portions thereof that the other party designates.  Each party will allow the other party to participate in seeking to obtain such confidential treatment for Confidential Information.
Section 21. - Governing Law.
This Agreement shall in all respects, including matters of construction, validity and performance, be governed by and be construed in accordance with the laws of the State of Ohio, excluding its choice of law principles.
Section 22. - Representations and Warranties. 
(a).    AK Steel represents and warrants to Cliffs that (i) the execution and delivery of this Agreement by AK Steel and the performance of its obligations hereunder have been duly authorized by all requisite corporate action, (ii) neither the execution and delivery of this Agreement, nor the performance of its obligations hereunder by AK Steel 

shall, or after the lapse of time or giving of notice shall, conflict with, violate or result in a breach of, or constitute a default under the certificate of incorporation or bylaws of AK Steel or any law, statute, rule or regulation applicable to it, or conflict with, violate or result in a breach of or constitute a default under the material agreement to which it is a party or by which it or any of its properties is bound, or any judgment, order, award or decree to which AK Steel is a party or by which it is bound, or require any approval, consent, authorization or other action by any court, governmental authority or regulatory body or any creditor of AK Steel or any other person or entity, and (iii) this Agreement constitutes a valid and binding obligation of AK Steel and is enforceable against AK Steel in accordance with its terms.
(b).    Cliffs represents and warrants to AK Steel that:  (i) the execution and delivery of this Agreement by Cliffs and the performance of its obligations hereunder have been duly authorized by all requisite corporate actions, (ii) neither the execution and delivery of this Agreement nor the performance of its obligations hereunder by Cliffs shall, or after the lapse of time or giving of notice shall, conflict with, violate or result in a breach of, or constitute a default under the certificate of incorporation or bylaws of Cliffs or any law, statute, rule or regulation applicable to it, or conflict with, violate or result in the breach of or constitute a default under any material agreement to which it is a party or by which it or any of its properties is bound, or any judgment, order, award or decree to which Cliffs is a party or by which it is bound, or require any approval, consent, authorization or other action by any court, governmental authority or regulatory body or any creditor of Cliffs or any other person or entity, and (iii) this Agreement constitutes a valid and binding obligation of Cliffs and is enforceable against Cliffs in accordance with its terms.
Section 23. - Counterparts. 
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
Section 24. - Arbitration.  
(a).    Upon notice by either party to the other, all disputes, claims, questions or disagreements arising out or relating to this Agreement or breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this Agreement to arbitrate, shall be determined by arbitration administered by the American Arbitration Association in accordance with the provisions of its Commercial Arbitration Rules, modified as follows:

		
	(i).
	The place of arbitration shall be Cleveland, Ohio;

(ii).    Unless the parties consent in writing to a lesser number, the arbitration proceedings shall be conducted before a panel of three neutral arbitrators, one to be appointed by Cliffs, one to be appointed by AK Steel, and third to be selected by the two arbitrators.  None of the arbitrators shall be an employee, officer, director or consultant of, or of a direct competitor of, AK Steel or Cliffs;
(iii).    Either party may apply to the arbitrators seeking injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved.  Either party also may, without waiving any remedy under this Agreement, seek from any court having jurisdiction any interim or provisional relief that is necessary to protect the rights or property of that party, pending the establishment of the arbitral tribunal (or pending the arbitral tribunal’s determination of the merits of the controversy);
(iv).    Consistent with the expedited nature of arbitration, each party will, upon the written request of the other party, promptly provide the other with copies of documents on which the producing party may rely or otherwise which may be relevant in support of or in opposition to any claim or defense; any dispute regarding discovery, or the relevance or scope thereof, shall be determined by the arbitrators, which determination shall be conclusive; and all discovery shall be completed within 45 days following the appointment of the arbitrators;
(v).    In connection any arbitration arising out of this Agreement, the arbitrators shall have no authority to alter, amend, or modify any of the terms and conditions of this Agreement, and further, the arbitrators may not enter any award that alters, amends or modifies terms or conditions of this Agreement in any form or manner;
(vi).    The arbitration shall be “Baseball Style” wherein each party shall submit to the arbitrators and exchange with each other in advance of the hearing their last, best offers. The arbitrators shall be limited to awarding only one or the other of the two figures submitted; 
(vii).    The award or decision shall be made within nine months of the filing of the notice of intention to arbitrate, and the arbitrators shall agree to comply with this schedule before accepting appointment; provided, however, that this time limit may be extended by written agreement signed by both parties or by the arbitrators, if necessary; and

(viii).    In connection with any arbitration related to this Agreement, each party shall be responsible for its own costs and expenses, and the parties will equally split the cost of conducting the arbitration itself.
(b).    The judgment of the arbitrators shall be final and binding on the parties, and judgment upon the award rendered by the arbitrators may be entered and enforced by any court of the United States or any state thereof.
Section 25. - Entire Agreement
This agreement, the Recitals and the Exhibits attached to this Agreement (all of which shall be deemed to be incorporated into the Agreement and made a part hereof) set forth the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements, understandings or letters of intent among any of the parties hereto with respect to AK Dearborn.
IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date first written above.
	
					
	CLIFFS MINING COMPANY
	 
	AK STEEL CORPORATION

	By:
	/s/ Terrence R. Mee
	 
	By:
	/s/ Maurice Reed

	Name:
	Terrence R. Mee
	 
	Name:
	Maurice Reed

	Title:
	Sr. Vice President
	 
	Title:
	VP Engineering, Raw Materials & Energy

	 
	 
	 
	 
	 

	THE CLEVELAND-CLIFFS IRON COMPANY
	 
	 
	 

	By:
	/s/ Terrence R. Mee
	 
	 
	 

	Name:
	Terrence R. Mee
	 
	 
	 

	Title:
	Vice President
	 
	 
	 

	
	
	CLEVELAND-CLIFFS INC. HAS REQUESTED THAT THE OMITTED PORTIONS OF THIS DOCUMENT, WHICH ARE INDICATED BY ASTERISKS, BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934

	
																
	EXHIBIT I

	CLIFFS MINING COMPANY

	AK STEEL CORPORATION

	EXAMPLE OF ANNUAL PELLET PRICE CALCULATION

	2015 PELLET PRICE CALCUTION
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	(Some values are estimated for illustrative purposes only.)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	QUARTERLY PRICE
	 
	Q1 2015
	 
	Q2 2015
	 
	Q3 2015
	 
	Q4 2015
	 
	 
	 
	 
	 

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

	Freight Credit
	 
	***
	 
	***
	 
	***
	 
	***
	 
	 
	 
	 
	 

	Pellet Premium
	 
	***
	 
	***
	 
	***
	 
	***
	 
	 
	 
	 
	 

	Quarterly Price
	 
	***
	 
	***
	 
	***
	 
	***
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	*** (AVERAGE QUARTERLY PRICE)
	 
	2015
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	***
	 
	***
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Freight Credit
	 
	***
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Pellet Premium
	 
	***
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	***
	 
	***
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	***
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	*** 2015 = *** 2014 * (*** 2015 / *** 2014)
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	***
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	PRICE ADJUSTMENT
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	2014 Base Price per iron unit F.O.B. Port of Marquette (A)
	 
	***
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	(B)
	 
	(C)
	 
	(D) = (C) - (B)
	(E) = (D) / (B)
	(F) = (E) * (A)
	(G)
	 
	(H) = (F) * (G)

	 
	 
	2014
	 
	2015
	 
	Change
	% Change
	Price Adj.
	Weight
	 
	Adjustment

	***
	 
	***
	 
	***
	 
	***
	***
	***
	25%
	

	 
	***

	PPI - ***
	 
	***
	 
	***
	 
	***
	***
	***
	25%
	

	 
	***

	PPI - ***
	 
	***
	 
	***
	 
	***
	***
	***
	25%
	

	 
	***

	PPI - ***
	 
	***
	 
	***
	 
	***
	***
	***
	25
	%
	 
	***

	Total Price Adjustment
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	***

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	Base Price per iron unit F.O.B. Port of Marquette from Prior Year
	 
	***
	 
	 
	 
	 
	 
	 
	 

	Total Price Adjustment
	 
	 
	 
	***
	 
	 
	 
	 
	 
	 
	 

	2015 Final Price per iron unit F.O.B. Port of Marquette
	 
	***
	 
	 
	 
	 
	 
	 
	 

	
	
	CLEVELAND-CLIFFS INC. HAS REQUESTED THAT THE OMITTED PORTIONS OF THIS DOCUMENT, WHICH ARE INDICATED BY ASTERISKS, BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE ACT OF 1934

	
																						
	EXHIBIT II

	CLIFFS MINING COMPANY

	AK STEEL CORPORATION

	PELLET TYPICAL ANALYSIS AS LOADED TO VESSEL FOR SHIPMENT

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	Report
	 
	 
	TILDEN HEMATITE
	 
	 
	TILDEN MAGNETITE

	 
	 
	 
	 
	 
	 
	 
	Frequency
	 
	 
	Typical
	 
	Minimum
	 
	Maximum
	 
	 
	Typical
	 
	Minimum
	 
	Maximum

	Moisture
	 
	V
	 
	 
	***
	 
	 
	 
	 
	 
	 
	***
	 
	 
	 
	 

	A. DRY CHEMICAL ANALYSIS
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Fe
	 
	V
	 
	 
	61.5
	 
	***
	 
	 
	 
	 
	61.3
	 
	***
	 
	 

	 
	SiO2
	 
	V
	 
	 
	***
	 
	***
	 
	***
	 
	 
	***
	 
	***
	 
	***

	 
	AI2O3
	 
	V
	 
	 
	***
	 
	 
	 
	 
	 
	 
	***
	 
	 
	 
	 

	 
	CaO 
	 
	V
	 
	 
	***
	 
	***
	 
	***
	 
	 
	***
	 
	***
	 
	***

	 
	MgO
	 
	V
	 
	 
	***
	 
	***
	 
	***
	 
	 
	***
	 
	***
	 
	***

	 
	Mn
	 
	V
	 
	 
	***
	 
	 
	 
	 
	 
	 
	***
	 
	 
	 
	 

	 
	Phos
	 
	V
	 
	 
	***
	 
	 
	 
	***
	 
	 
	***
	 
	 
	 
	***

	 
	Na2O
	 
	Q
	 
	 
	***
	 
	 
	 
	 
	 
	 
	***
	 
	 
	 
	 

	 
	K2O
	 
	Q
	 
	 
	***
	 
	 
	 
	 
	 
	 
	***
	 
	 
	 
	 

	B. SIZING, Wt. %
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	% + 1/2"
	 
	V
	 
	 
	***
	 
	 
	 
	***
	 
	 
	***
	 
	 
	 
	***

	 
	% - 1/2" x + 3/8"
	 
	V
	 
	 
	***
	 
	***
	 
	 
	 
	 
	***
	 
	***
	 
	 

	 
	% - 3/8" x + 1/4"
	 
	V
	 
	 
	***
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	% - 1/4"
	 
	V
	 
	 
	***
	 
	 
	 
	***
	 
	 
	***
	 
	 
	 
	***

	C. TUMBLE TEST
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	% + 1/4" before tumble
	 
	V
	 
	 
	***
	 
	***
	 
	 
	 
	 
	***
	 
	 
	 
	 

	 
	% + 1/4" after tumble
	 
	V
	 
	 
	***
	 
	***
	 
	 
	 
	 
	***
	 
	***
	 
	 

	 
	Q Index
	 
	V
	 
	 
	***
	 
	 
	 
	 
	 
	 
	***
	 
	 
	 
	 

	 
	Tumble Index - 28 mesh
	 
	V
	 
	 
	***
	 
	 
	 
	 
	 
	 
	***
	 
	 
	 
	 

	D. COMPRESSION TEST
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Minus 1/2" by plus 3/8"
	 
	V
	 
	 
	***
	 
	***
	 
	 
	 
	 
	***
	 
	***
	 
	 

LETTER "V" DENOTES THAT ANALYSIS TO BE PROVIDED ON EACH VESSEL SHIPMENT OF PELLETS
LETTER "Q" DENOTES THAT ANALYSIS TO BE PROVIDED ON A COMPOSITE SAMPLE OF QUARTERLY VESSEL SHIPMENTS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}]]