Document:

CLF-2013.6.30 EX 4.1

EXHIBIT 4.1 

CLIFFS NATURAL RESOURCES INC.

Seventh Supplemental Indenture
Dated as of May 7, 2013

U.S. BANK NATIONAL ASSOCIATION, 
as Trustee

TABLE OF CONTENTS

Page
ARTICLE 1 
NATURE OF AMENDMENT
		
	Section 1.01.
	Scope of Supplemental Indenture; General.........................................2

ARTICLE 2 
AMENDMENT
		
	Section 2.01.
	Amendment to Section 6.2 of Base Indenture......................................2

		
	Section 2.02.
	Amendment to Section 7.7 of Base Indenture......................................3

ARTICLE 3 
EFFECTIVENESS
		
	Section 3.01.
	Effectiveness of Seventh Supplemental Indenture...............................3

ARTICLE 4 
MISCELLANEOUS
		
	Section 4.01.
	Governing Law.....................................................................................3

		
	Section 4.02.
	Capitalized Terms................................................................................3

		
	Section 4.03.
	Recitals................................................................................................3

	
			
	 
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SEVENTH SUPPLEMENTAL INDENTURE
Seventh Supplemental Indenture, dated as of May 7, 2013 (the "Seventh Supplemental Indenture"), to the Prior Supplemental Indentures (as defined below), is by and between CLIFFS NATURAL RESOURCES INC., an Ohio corporation (the "Company"), and U.S. BANK NATIONAL ASSOCIATION, as trustee (the "Trustee").
RECITALS:
WHEREAS, the Company and the Trustee have heretofore executed and delivered an Indenture, dated as of March 17, 2010 (as amended, supplemented or otherwise modified, the "Base Indenture");
WHEREAS, the Company and the Trustee have heretofore executed and delivered a first supplemental indenture, dated as of March 17, 2010 (the "First Supplemental Indenture"), to the Base Indenture, pursuant to which the Company has issued $400,000,000 initial aggregate principal amount of the Company's 5.900% Notes due 2020 (the "5.900% Notes due 2020");
WHEREAS, the Company and the Trustee have heretofore executed and delivered a second supplemental indenture, dated as of September 20, 2010 (the "Second Supplemental Indenture"), to the Base Indenture, pursuant to which the Company has issued $500,000,000 initial aggregate principal amount of the Company's 4.80% Notes due 2020 (the "4.80% Notes due 2020");
WHEREAS, the Company and the Trustee have heretofore executed and delivered a third supplemental indenture, dated as of September 20, 2010 (the "Third Supplemental Indenture), to the Base Indenture, pursuant to which the Company has issued $800,000,000 initial aggregate principal amount of the Company's 6.25% Notes due 2040 (the "6.25% Notes due 2040");
WHEREAS, the Company and the Trustee have heretofore executed and delivered a fourth supplemental indenture, dated as of March 23, 2011 (the "Fourth Supplemental Indenture"), to the Base Indenture, pursuant to which the Company has issued $700,000,000 initial aggregate principal amount of the Company's 4.875% Notes due 2021 (the "4.875% Notes due 2021");
WHEREAS, the Company and the Trustee have heretofore executed and delivered a fifth supplemental indenture, dated as of March 31, 2011 (the "Fifth Supplemental Indenture"), to the Base Indenture;
WHEREAS, the Company and the Trustee have heretofore executed and delivered a sixth supplemental indenture, dated as of December 13, 2012 (the "Sixth Supplemental Indenture" and, collectively with the First Supplemental Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture, the Fourth Supplemental Indenture and the Fifth Supplemental Indenture, the "Prior Supplemental Indentures"), to the Base Indenture, pursuant to which the Company has issued $500,000,000 initial aggregate principal amount of the Company's 3.950% Notes due 2018 (the "3.950% Notes due 2018" and, collectively with the 5.900% Notes due 2020, the 4.80% Notes due 2020, the 6.25% Notes Due 2040 and the 4.875% Notes Due 2021, the "Notes");

WHEREAS, Section 9.1(a) of the Base Indenture provides that the Company and the Trustee, as applicable, may amend or supplement certain of the provisions of the Base Indenture or the Securities without the consent of the Holders to cure any ambiguity, defect or inconsistency;
WHEREAS, the Company desires to cure a defect in the Base Indenture by correcting erroneous cross references to various Event of Default provisions;
WHEREAS, the consent of any Holder is not required to effect the amendments set forth herein;
WHEREAS, the execution of this Seventh Supplemental Indenture by the parties hereto is in all respects authorized by the provisions of the Base Indenture and all acts and requirements necessary to make this Seventh Supplemental Indenture a valid agreement of the Company and the Trustee, in accordance with its terms, have been done;
NOW, THEREFORE, THIS SEVENTH SUPPLEMENTAL INDENTURE WITNESSETH: in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes, that the Base Indenture is supplemented and amended, to the extent expressed herein, as follows:
ARTICLE 1
NATURE OF AMENDMENT
Section 1.01.    Scope of Supplemental Indenture; General.
This Seventh Supplemental Indenture supplements and, to the extent inconsistent therewith, replaces the provisions of the Base Indenture to which provisions reference is hereby made.
ARTICLE 2
AMENDMENT
		
	Section 2.01.
	Amendment to Section 6.2 of Base Indenture.

The first paragraph of Section 6.2 of the Base Indenture is hereby deleted in its entirety and replaced with the following:
Section 6.2. Acceleration of Maturity; Rescission and Annulment.
“If an Event of Default with respect to Securities of any Series at the time outstanding occurs and is continuing (other than an Event of Default referred to in Section 6.1(e) or (f)) then in every such case the Trustee or the Holders of not less than 25% in principal amount of the outstanding Securities of that Series may declare the principal amount (or, if any Securities of that Series are Discount Securities, such portion of the principal amount as may be specified in the terms of such 

Securities) of and accrued and unpaid interest, if any, on all of the Securities of that Series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) and accrued and unpaid interest, if any, shall become immediately due and payable. If an Event of Default specified in Section 6.1(e) or (f) shall occur, the principal amount (or specified amount) of and accrued and unpaid interest, if any, on all outstanding Securities shall ipso facto become and be immediately due and payable without any notice, declaration or other act on the part of the Trustee or any Holder.”
		
	Section 2.02.
	Amendment to Section 7.7 of Base Indenture.

The fifth paragraph of Section 7.7 of the Base Indenture is hereby deleted in its entirety and replaced with the following:
Section 7.7. Compensation and Indemnity.
“When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1(e) or (f) occurs, the expenses (including reasonable charges and expenses of its accountants, experts and attorneys) and the compensation to the Trustee for the services are intended to constitute expenses of administration under any Bankruptcy Law.”
ARTICLE 3
EFFECTIVENESS
Section 3.01.    Effectiveness of Seventh Supplemental Indenture.
This Seventh Supplemental Indenture shall become effective immediately upon its execution and delivery by the Company and the Trustee.
ARTICLE 4
MISCELLANEOUS
Section 4.01.    Governing Law.
THIS SEVENTH SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ITS PRINCIPLES OF CONFLICTS OF LAW.
Section 4.02.    Capitalized Terms.

Except with respect to the capitalized terms used in the amendments to Sections 6.2 and 7.7 of the Base Indenture, capitalized terms used but not defined herein have the meanings ascribed to such terms in the Base Indenture.

Section 4.03.    Recitals.
The recitals contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness.
[Signatures on Following Page]

IN WITNESS WHEREOF, the parties hereto have caused this Seventh Supplemental Indenture to be duly executed, all as of the date first above written.
	
	
	CLIFFS NATURAL RESOURCES INC.

	By:   /s/ Terrance M. Paradie   

	Name:   Terrance M. Paradie

	Title:   Senior Vice President and Chief Financial Officer

	
	
	U.S. BANK NATIONAL ASSOCIATION,
  as Trustee

	By:   /s/ Elizabeth A. Thuning   

	Name:  Elizabeth A. Thuning

	Title:   Vice PresidentCLF-2013.6.30 EX 10.1

EXHIBIT 10.1 
EXECUTION VERSION
NON-EMPLOYEE DIRECTOR 
PHANTOM STOCK UNIT AWARD AGREEMENT
This PHANTOM STOCK UNIT AWARD AGREEMENT (the “Agreement”), dated as of July 9, 2013, is made by and between Cliffs Natural Resources Inc. (the “Company”), and James F. Kirsch (the “Director”).
RECITALS:
WHEREAS, the Director is a member of the Board of Directors of the Company (the “Board”); and 
WHEREAS, in connection with the Director’s appointment as non-executive Chairman of the Board, the members of the Board who are “non-employee directors” (as defined in Rule 16b-3 promulgated under the Securities Exchange Act of 1934) (the “Applicable Directors”) have determined that it is in the best interests of the Company and its shareholders to grant to the Director an award of phantom stock units (“Phantom Stock Units”), representing the right to a cash payment with respect to the number Phantom Stock Units set forth herein on a future date, subject to the terms and conditions contained in this Agreement.
NOW, THEREFORE, for and in consideration of the premises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:
		
	1.
	Grant of Phantom Stock Units.  The Company, by action of the Board taken solely by the Applicable Directors, hereby grants to the Director, as of the date hereof, 45,760 Phantom Stock Units, on the terms and conditions hereinafter set forth.  The Phantom Stock Units represent the unfunded, unsecured right of the Director to receive a cash payment of the “Settlement Value” (as defined below) on the “Payment Date” (as defined below). 

For purposes of this Agreement, “Settlement Value” shall be defined as the product of the number of Phantom Stock Units subject to this Agreement and the closing price on the New York Stock Exchange of a share of the Company’s common shares (a “Share”) on December 31, 2013.
		
	2.
	Payment of Settlement Value; Forfeiture.

(a)The Company shall, subject to Section 2(b) hereof, pay to the Director the Settlement Value as a lump sum cash payment (less applicable tax withholding, if any) on January 2, 2014 (the “Payment Date”).

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(b)Notwithstanding the foregoing, in the event that the Director voluntarily resigns from the Board or voluntarily steps down as non-executive Chairman of the Board, in each case other than at the request of the Board and prior to the Payment Date, the Phantom Stock Units shall automatically and without further action be cancelled and forfeited by the Director, and the Director shall have no further right or interest in or with respect to the Phantom Stock Units or the payment of the Settlement Value.
(c)Upon the payment of the Settlement Value in accordance with Section 3(a) of this Agreement, the Phantom Stock Units shall be extinguished.
		
	3.
	Adjustments Upon Certain Events.  In the event of any change in the outstanding Shares by reason of any stock split, reorganization, recapitalization, merger, consolidation, amalgamation, spin-off or combination transaction or exchange of Shares or other corporate exchange, or any distribution to shareholders of Shares (with the exception of any dividends other than extraordinary dividends) or any transaction similar to the foregoing (collectively, an “Adjustment Event”), the Board may, in its sole discretion and without liability to any person, adjust the number of Phantom Stock Units and the method of computing the Settlement Value to reflect such Adjustment Event; provided that such adjustment shall be consistent with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended and any applicable guidance thereunder (“Section 409A of the Code”).

		
	4.
	Authority of the Board.  The Board shall have final authority to interpret and construe this Agreement and to make any and all determinations under this Agreement, and its decision shall be binding and conclusive upon the Director and his legal representative in respect of any questions arising under this Agreement.

		
	5.
	No Right to Continued Service as a Director.  Nothing in this Agreement shall be construed as giving the Director the right to continue to serve as a director of the Company, or in any other capacity with the Company.

		
	6.
	No Acquired Rights.  In receiving the grant of Phantom Stock Units under this Agreement, the Director acknowledges and accepts that the Board has the power to amend or terminate this Agreement at any time and that the opportunity given to the Director to receive the grant of Phantom Stock Units or the payment of the Settlement Value under this Agreement is entirely at the discretion of the Board and does not obligate the Company or any of its affiliates to offer any same or similar grants or payments in the future (whether on the same or different terms); provided that, no amendment to this Agreement by the Board shall adversely affect the rights of the Director hereunder without the written consent of the Director.

		
	7.
	No Funding; No Rights of a Shareholder.  The Director's interest in the Phantom Stock Units is that of a general, unsecured creditor of the Company.  The Director shall not have any rights as a shareholder of the Company in respect of the Phantom Stock Units.

		
	8.
	Assignment.  The Director’s rights under this Agreement may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Director otherwise 

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than by will or by the laws of descent and distribution, and any purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance not permitted by this Section 8 shall be void and unenforceable against the Company or any affiliate.
		
	9.
	Governing Law.  This Agreement shall be construed and interpreted in accordance with the laws of the State of Ohio without regard to principles of conflicts of law thereof, or principals of conflicts of laws of any other jurisdiction which could cause the application of the laws of any jurisdiction other than the State of Ohio.

		
	10.
	Headings.  The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.

		
	11.
	Section 409A of the Code.  Notwithstanding anything in this Agreement to the contrary, any payments hereunder that would be subject to a penalty tax or accelerated income tax under Section 409A of the Code shall be deferred until the earliest date that such payments may be made without the imposition of such tax.

		
	12.
	Successors.  The terms of this Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and of the Director and the beneficiaries, executors, administrators, heirs and successors of the Director.

		
	13.
	Notices.  Any notice hereunder to any party shall be effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally, transmitted by email (delivery receipt requested, upon confirmation of receipt), sent by telecopy, or sent by certified or registered mail, postage prepaid, as follows:

If to the Company:
Cliffs Natural Resources Inc.
200 Public Square, Suite 3300 Cleveland, OH 44114 
Attention: General Counsel
If to the Director, to the address last set forth on the records of the Company
or, in either case, at any other address as one party shall have specified by notice in writing to the other party.
		
	14.
	Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

		
	15.
	Signature in Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

[SIGNATURE PAGE TO FOLLOW]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day first written above.

	
		
	CLIFFS NATURAL RESOURCES INC.

	 
	 

	 
	 

	 
	 

	 
	 

	By:
	/s/ Kelly Tompkins

	 
	Name: Kelly Tompkins

	 
	Title: EVP, Chief Administrative Officer and President, Cliffs China

	 
	 

	 
	 

	 
	 

	 
	 

	By:
	/s/ James F. Kirsch

	 
	James F. Kirsch

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