Document:

Exhibit 10.1

 

Motorola Long Range Incentive Plan
(LRIP) of 2009

 

(as amended and restated July 26,
2010)

 

OVERVIEW

 

The
Plan is being implemented pursuant to the terms and conditions of the Motorola
Omnibus Incentive Plan of 2006, as amended.

 

ELIGIBILITY

 

Effective
prior to February 11, 2010, Officers of the Company who are working
directly in the Broadband Mobility Solutions business as recommended by the
co-Chief Executive Officer and Chief Executive Officer, Broadband Mobility
Solutions and Officers working directly in the Mobile Devices business as
recommended by the co-Chief Executive Officer and Chief Executive Officer,
Mobile Devices and approved by the Committee shall be eligible to participate
in the Plan. The co-Chief Executive Officers and the Chief Operating Officer
(if any) are also eligible to participate as approved by the Committee. No
employee who is not an Officer shall be eligible to participate in the Plan.

 

Effective
as of February 11, 2010, Officers of the Company who are working directly
in the Enterprise Mobility Solutions and Networks business as recommended by
the co-Chief Executive Officer and Chief Executive Officer, Enterprise Mobility
Solutions and Networks business and Officers working directly in the Mobile
Devices and Home business as recommended by the co-Chief Executive Officer and
Chief Executive Officer, Mobile Devices and Home business approved by the
Committee shall be eligible to participate in the Plan. The co-Chief Executive
Officers and the Chief Operating Officer (if any) are also eligible to
participate as approved by the Committee. No employee who is not an Officer
shall be eligible to participate in the Plan.

 

PARTICIPATION

 

Generally,
Officers who become eligible to participate during the first three months of a
multi-year performance cycle will participate in the full performance cycle.
Officers who become eligible to participate after the first three months of a
performance cycle will participate in the performance cycle on a pro rata basis, except that Officers who
become eligible to participate during the last three months of a performance
cycle will not be eligible to participate in the performance cycle.

 

1

 

Participants
who lose their eligibility to participate as a result of the lapse of status as
an Officer after the first three months of a performance cycle will participate
in the performance cycle on a pro rata basis
if they continue to be employed with the Company through the last day of the
performance cycle or if their employment terminates due to death, total and
permanent disability, divestiture or they are involuntarily terminated for a
reason other than cause during the third year of the performance cycle.
Participants who lose their eligibility to participate in the first three
months of a performance cycle will not be eligible to participate in the
performance cycle.

 

Except
as set forth under “Separation of the Company,” pro rata awards will be determined on the basis of the
number of completed months of employment as an Officer during which the
participant is actually working within the performance cycle.

 

PERFORMANCE CYCLE

 

The
Plan is based upon multi-year performance cycles selected by the Committee with
an initial three-year performance cycle beginning on January 1, 2009.

 

PERFORMANCE MEASURES

 

Performance
measures for each cycle will be determined by the Committee based on one or
more of the Performance Measures set forth in Section 14 of the Omnibus
Plan.

 

Performance
measures may apply to performance in each year in the performance cycle, to
cumulative performance during multiple years in the performance cycle or the
entire performance cycle, or a combination of any of the foregoing. If
performance measures are applied to performance in each year in the performance
cycle, performance to target for each year shall be divided by the number of
years in the performance cycle and added together to determine the award for
the entire performance cycle.

 

PARTICIPANTS’ TARGET & MAXIMUM AWARD

 

A
participant’s target award is established at the commencement of a performance
cycle based on a percentage of the participant’s base pay rate in effect at
that time. If performance measures are applied to performance in each year in
the performance cycle, the target award for a Covered Employee for any
succeeding year will be adjusted at the commencement of the next year in the
performance cycle.

 

A
participant’s maximum earned award will be two times his/her target award.

 

2

 

THE PAYOUT PROCESS

 

·                  All
earned awards will be paid in cash or Company stock, as determined by the
Committee in its discretion. To the extent awards are paid in Company stock,
the number of shares of stock earned by a participant shall be determined by
dividing the amount of the award earned during the performance cycle by the
Certification Date Value. The shares will be issued under, and subject to the
limitations of, the Omnibus Plan or such other shareholder-approved Company
equity-based incentive plan as designated by the Committee.

 

·                  Effective
prior to February 11, 2010, the Committee may reduce the amount of the
payment to be made pursuant to this Plan to any participant who is or may be a
Covered Employee at any time prior to payment as a result of the participant’s
performance during the performance cycle. 
The co-Chief Executive Officer and Chief Executive Officer, Broadband
Mobility Solutions may adjust the amount of the payment to be made pursuant to
this Plan to any participant who works directly for the Broadband Mobility Solutions
business and the co-Chief Executive Officer, Chief Executive Officer Mobile
Devices may adjust the amount of the payment to be made pursuant to this Plan
to any participant who works directly for the Mobile Devices business at any
time prior to payment as a result of the participant’s performance during the
performance cycle; provided, however, that any such adjustment may not result
in a payment to the participant in excess of the participant’s maximum award
under the Plan and any such adjustment to a payment to a member of the Senior
Leadership Team or a Covered Person will be subject to the approval of the
Committee.

 

·                  Effective
as of February 11, 2010, the Committee may reduce the amount of the
payment to be made pursuant to this Plan to any participant who is or may be a
Covered Employee at any time prior to payment as a result of the participant’s
performance during the performance cycle. The co-Chief Executive Officer and
Chief Executive Officer, Enterprise Mobility Solutions and Networks business
may adjust the amount of the payment to be made pursuant to this Plan to any
participant who works directly for the Enterprise Mobility Solutions and
Networks business and the co-Chief Executive Officer, Chief Executive Officer,
Mobile Devices and Home business may adjust the amount of the payment to be
made pursuant to this Plan to any participant who works directly for the Mobile
Devices and Home business at any time prior to payment as a result of the
participant’s performance during the performance cycle; provided, however, that
any such adjustment may not result in a payment to the participant in excess of
the participant’s maximum award under the Plan and any such adjustment to a
payment to a member of the Senior Leadership Team or a Covered Person will be
subject to the approval of the Committee.

 

·                  If
the Committee determines, in its sole discretion, that a participant has
willfully engaged in any activity at any time, prior to the payment of an
award, that the 

 

3

 

Committee determines was, is, or will be
harmful to the Company, the participant will forfeit any unpaid award.

 

·                  The
Company shall have the right to satisfy all federal, state and local
withholding tax requirements with respect to the award earned by reducing
either (1) the cash paid (in the event of a cash payment) by the amount of
withholding or (2) the number of earned shares (in the event of a stock
payment) by the number of shares determined by dividing the amount of
withholding required by the Certification Date Value.

 

·                  Payments
will be made as soon as administratively practicable during the calendar year
immediately following the last calendar year in the performance cycle (unless a
participant makes an irrevocable election under any deferred compensation
arrangement subject to Section 409A of the Internal Revenue Code of 1986,
as amended, to defer payment of a portion of the participant’s award, in which
case such payment, if any, shall be made in accordance with such election). A
participant has no right to any award until that award is paid.

 

SITUATIONS AFFECTING THE PLAN

 

·  Change in Employment

 

·                  Generally,
a participant will be eligible for payment of an earned award only if
employment continues through the last day of the performance cycle.

 

·                  Because
employee retention is an important objective of this Plan and awards do not
bear a precise relationship to time worked within the calendar year or length
of service with the Company, Participants who separate from employment prior to
the end of the performance cycle (for reasons other than death, Total and
Permanent Disability, Retirement or, if the separation from employment occurs
in the final year of a performance cycle, involuntary termination for a reason
other than Cause) shall not receive any award attributable to that performance
cycle.

 

·                  Pro rata awards
may be possible, however, depending upon the type of employment termination. In
the event a participant (i) remains on payroll as an active employee at
the end of a performance cycle, but is not actually working, whether or not on
a leave of absence, (ii) Retires, dies, incurs a Total and Permanent
Disability or, in the final year of a performance cycle, is involuntarily
terminated for a reason other than Cause prior to the end of the performance
cycle while actively employed or on a leave of absence, the participant will be
entitled to a pro rata award
based on the number of completed months of employment within the performance
cycle in which the participant was actually working as an Officer, provided
that the participant is otherwise eligible for an award. The table below
summarizes how earned awards will generally be prorated in accordance with the
type of employment termination:

 

4

 

	
  If employment terminates due to...

  	
   

  	
  The earned award will be...

  
	
   

  	
   

  	
   

  
	
  Death

  	
   

  	
  Pro
  rated based on the number of completed months of employment within the
  performance cycle.

  
	
   

  	
   

  	
   

  
	
  Total
  and Permanent Disability

  	
   

  	
  Pro
  rated based on the number of completed months of employment within the
  performance cycle.

  
	
   

  	
   

  	
   

  
	
  Retirement
  (in all countries other than member states or acceding countries of the
  European Union)

  	
   

  	
  Pro
  rated based on the number of completed months of employment within the
  performance cycle.

  
	
   

  	
   

  	
   

  
	
  Involuntary
  Termination of Employment for a Reason Other than Cause (in the final year of
  the performance cycle)

  	
   

  	
  Pro
  rated based on the number of completed months of employment within the
  performance cycle.

  
	
   

  	
   

  	
   

  
	
  Termination
  of Employment Because of Serious Misconduct

  	
   

  	
  Forfeited.

  
	
   

  	
   

  	
   

  
	
  Divestiture
  or Spin-Off

  	
   

  	
  Pro
  rated based on the number of completed months of employment within the
  performance cycle.

  
	
   

  	
   

  	
   

  
	
  Termination
  of Employment for any Other Reason than Described Above

  	
   

  	
  Forfeited.

  
	
   

  	
   

  	
   

  
	
  For
  purposes of determining a prorated payout, completed months of employment
  will include only those months in which the participant is actually working
  and is an Officer.

  

 

A
prorated payout will be based on final performance results and paid in the same
manner and at the same time as other awards, as described above in “The Payout
Process.”

 

·                  In
the event a participant is reclassified from a higher Officer level to a lower
Officer level (i.e., from
Executive Vice President to either Senior Vice President or Corporate Vice
President or from Senior Vice President to Corporate Vice President), the
participant’s target award will be recalculated to reflect (a) the higher
target award for the actual number of months completed within the performance
cycle while employed in the higher Officer level and (b) the lower target
award level for the actual number of months completed within the performance
cycle while employed in the lower Officer level.

 

·                  In
the event a participant (other than a Covered Employee) is reclassified from a
lower Officer level to a higher Officer level (i.e.,
from Corporate Vice President to Senior Vice President or Executive Vice
President or from Senior Vice President to Executive Vice President), the
participant’s target award will be recalculated to reflect (a) the lower
target award level for the actual number of months completed within the
performance cycle while employed in the lower Officer level and (b) the
higher target award for the actual number of months completed within the
performance cycle while employed in the higher Officer level.

 

5

 

·  Change in Control

 

If
the Company undergoes a Change in Control as defined in the Omnibus Plan, the
treatment of outstanding awards under this Plan shall be determined by the
terms of the Omnibus Plan in effect at the time of the commencement of the
performance cycle; provided, however, that payment will be made in the manner
set forth under “The Payout Process” unless payment under the Omnibus Plan is
due following a Change in Control and such Change in Control would be a
permissible distribution event, as defined in Section 409A(a)(2) of
the Internal Revenue Code of 1986, as amended.

 

·  Separation of the Company

 

Notwithstanding
any language in this Plan to the contrary, if the Separation occurs prior to December 31,
2011:

 

·                  Each
outstanding performance cycle will terminate for all participants on the
Distribution Date.  Earned awards for
each such performance cycle will be determined based on the Company’s
performance through the Distribution Date.

 

·                  Each
participant’s award for such performance cycles will be pro rated determined on
the basis of a fraction, the numerator of which is the participant’s number of
completed months of employment within the performance cycle in which the
participant was actually working as an Officer and the denominator of which is
36; provided, however, that each participant’s completed months of employment
will not include any month that is completed following the Distribution
Date.  For participants that separate
from employment prior to the Distribution Date or became eligible to
participate after the first day of a performance cycle, the proration described
in this section, “Separation of the Company”, will constitute the proration
required by “—Change in Employment” and “Participation”.

 

·                  Earned
awards for each performance cycle will be paid in the manner and at the time
set forth above under “The Payout Process”; provided, however, that the last
day of the performance cycles for the purpose of the provisions set forth under
“The Payout Process” will be deemed to be December 31, 2011 (in the case
of the performance cycle that began January 1, 2009) and December 31,
2012 (in the case of the performance cycle that began January 1, 2010);
provided, further, that all earned awards will be paid in cash.

 

·                  If
a participant separates from employment prior to the Distribution Date, such
participant’s award will be subject to forfeiture in the manner set forth under
“—Change in Employment” and “Participation”.

 

6

 

·                  Notwithstanding
the foregoing, each Covered Employee’s earned award for each outstanding
performance cycle on the Distribution Date will be equal to the lesser of (a) the
amount of such Covered Employee’s award as determined in accordance with this
Plan without giving effect to the provisions of this section, “Separation of
the Company,” and (b) the amount of such Covered Employee’s award as
determined in accordance with this Plan giving effect to the provisions of this
section, “Separation of the Company.”

 

RESERVATION AND RETENTION OF COMPANY RIGHTS

 

·                  The
selection of any employee for participation in the Plan will not give that
participant any right to be retained in the employ of the Company.

 

·                  The
Committee’s decision to make an award in no way implies that similar awards may
be granted in the future.

 

·                  Anyone
claiming a benefit under the Plan will not have any right to or interest in any
awards unless and until all terms, conditions, and provisions of Plan that
affect that person have been fulfilled as specified herein.

 

·                  No
employee will at any time have a right to be selected for participation in a
future performance period for any fiscal year, despite having been selected for
participation in a previous performance period.

 

ADMINISTRATION

 

It
is expressly understood that the Committee has the discretionary authority to
administer, construe, and make all determinations necessary or appropriate to
the administration of the Plan, all of which will be binding upon the
participant.

 

GENERAL PROVISIONS

 

·                  Award
opportunities may not be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and
distribution.

 

·                  To
the extent permitted by law, amounts paid under the Plan will not be considered
to be compensation for purposes of any benefit plan or program maintained by
the Company.

 

·                  All
obligations of the Company under the Plan with respect to payout of awards, and
the corresponding rights granted thereunder, will be binding on any successor
to the 

 

7

 

Company, whether the existence of such successor is
the result of a direct or indirect purchase, merger, consolidation, or other
acquisition of all or substantially all of the business and/or assets of the
Company.

 

·                  All
awards to Covered Persons are subject to the terms and conditions of the
Recoupment Policy.  The Recoupment Policy
provides for determinations by the Company’s independent directors of a Policy
Restatement.  In the event of a Policy
Restatement, the Company’s independent directors may require, among other
things, reimbursement of the gross amount of any bonus or incentive
compensation paid to the Covered Person hereunder on or after January 1,
2008, if and to the extent the conditions set forth in the Recoupment Policy
apply.  Any determinations made by the
independent directors in accordance with the Recoupment Policy shall be binding
upon the Covered Person.  The Recoupment
Policy is in addition to any other remedies which may be otherwise available at
law, in equity or under contract, to the Company.

 

·                  In
the event that any provision of the Plan will be held illegal or invalid for
any reason, the illegality or invalidity will not affect the remaining parts of
the Plan, and the Plan will be construed and enforced as if the illegal or
invalid provision had not been included.

 

·                  No
participant or beneficiary will have any interest whatsoever in any specific
asset of the Company. To the extent that any person acquires a right to receive
payments under the Plan, such right will be no greater than the right of any
unsecured general creditor of the Company.

 

·                  This
Plan constitutes a legal document which governs all matters involved with its
interpretation and administration and supersedes any writing or representation
inconsistent with its terms.

 

DEFINITIONS

 

Certification Date Value:
the closing price of one share of Motorola common stock on the New York Stock
Exchange on the day before the date on which the Committee certifies the amount
of the award earned.

 

Company:
Motorola, Inc. and its Subsidiaries.

 

Committee:
the Compensation and Leadership Committee of the Board of Directors.

 

8

 

Covered Employee:
a covered employee within the meaning of Section 162(m)(3) of the
Internal Revenue Code.

 

Covered Persons:  officers (as such term is defined in Rule 16a-1(f) under
the Securities Exchange Act of 1934) of the Company.

 

Distribution:
distribution of the shares of Motorola SpinCo Holdings Corporation common stock
owned by the Company to stockholders of the Company as of the record date.

 

Distribution Date:  the date on which the Distribution occurs.

 

Divestiture:
the sale, lease, outsourcing arrangement, spin-off or similar transaction
wherein a Subsidiary is sold or whose shares are distributed to the Motorola
stockholders, or any other type of asset transfer or transfer of any portion of
a facility or any portion of a discrete organizational unit of Company or a
Subsidiary.

 

Motorola SpinCo Holdings Corporation: a wholly-owned subsidiary of the Company that at the time of the
Distribution, will hold, directly or indirectly, substantially all of the
assets, liabilities and operations of Motorola’s Mobile Devices and Home
businesses and, through the Distribution, will become an independent, publicly
traded company.

 

Omnibus Plan:
the Motorola Omnibus Incentive Plan of 2006, as amended, or any successor plan.

 

Officers: Corporate,
Senior and Executive Vice Presidents of the Company.

 

Plan: the Motorola Long
Range Incentive Plan (LRIP) of 2009.

 

Policy Restatement:  a restatement of the Company’s financial
results caused by the intentional misconduct of a Covered Person.

 

Recoupment Policy:  the Company’s Policy Regarding Recoupment of
Incentive Payments upon Financial Restatement, as it may be amended from time
to time.

 

9

 

Retire or Retirement:
shall only apply in countries other than member states or acceding countries of
the European Union and shall mean retirement from Motorola or a Subsidiary as
follows:

 

(i)                                     Retiring at or after age 55 with 20 years of service;

 

(ii)                                  Retiring at or after age 60 with 10 years of service;

 

(iii)                               Retiring at or after age 65, without regard to years of service; or

 

(iv)                              Retiring with any other combination of age and service, at the
discretion of the Committee.

 

Years
of service will be based on the participant’s Service Club Date.

 

Separation:  the separation of the Company into two
independent publicly traded companies, through the Distribution.

 

Subsidiary:
an entity of which Motorola owns directly or indirectly at least 50% and that
Motorola consolidates for financial reporting purposes.

 

Serious Misconduct:
any misconduct that is a ground for termination under the Motorola Code of Business
Conduct, or human resources policies, or other written policies or procedures.

 

Total and Permanent Disability: for (a) U.S. employees, entitlement to long-term disability
benefits under the Motorola Disability Income Plan, as amended and any successor
plan and (b) non-U.S. employees, as established by applicable Motorola
policy or as required by local regulations.

 

If
a term is used but not defined, it has the meaning given such term in the
Omnibus Plan.

 

AMENDMENT, MODIFICATION, AND TERMINATION

 

Except
as expressly provided by law, this Plan is provided at the Company’s sole
discretion and the Committee may modify or terminate it at any time,
prospectively or retroactively, without notice or obligation for any reason;
provided, however, that no such action may adversely affect a participant’s
rights under the Plan subsequent to such time as negotiations or discussions
which ultimately lead to a Change in Control have 

 

10

 

commenced.  In addition, there is no obligation to extend
the Plan or establish a replacement plan in subsequent years.

 

APPLICABLE LAW

 

To
the extent not preempted by federal law, or otherwise provided by local law,
the Plan will be construed in accordance with, and governed by, the laws of the
state of Illinois without regard to any state’s conflicts of laws principles.
Any legal action related to this Plan shall be brought only in a federal or
state court located in Illinois.

 

11Exhibit 10.2

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR

PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY

REQUEST.  OMISSIONS ARE DESIGNATED AS
{****}. A COMPLETE

VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY

WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

EXECUTION VERSION

 

 

 

 

 

 

EXTENSION MOLYBDENUM SUPPLY AGREEMENT

 

AMONG

 

GENERAL MOLY, INC.

 

AND

 

NEVADA MOLY, LLC,

 

as SELLERS

 

AND

 

ARCELORMITTAL PURCHASING SAS,

 

as BUYER

 

 

Dated as of  April 16, 2010

 

 

 

 

 

TABLE OF CONTENTS

 

 

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  RECITALS

  	
  1

  
	
   

  	
   

  
	
  AGREEMENT

  	
  1

  
	
   

  	
   

  
	
  1.

  	
  Definitions and Interpretation

  	
  1

  
	
   

  	
  1.1

  	
  Definitions

  	
  1

  
	
   

  	
  1.2

  	
  Interpretation

  	
  5

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Effectiveness; Supply and Purchase of Product

  	
  5

  
	
   

  	
  2.1

  	
  Effectiveness

  	
  5

  
	
   

  	
  2.2

  	
  Supply of Product Prior to Effective Date

  	
  6

  
	
   

  	
  2.3

  	
  Supply of Products Following Effective Date

  	
  6

  
	
   

  	
  2.4

  	
  Delivery Schedule; Shortfalls

  	
  6

  
	
   

  	
  2.5

  	
  Take-or-Pay

  	
  6

  
	
   

  	
  2.6

  	
  Composition of Products

  	
  7

  
	
   

  	
  2.7

  	
  Specifications

  	
  7

  
	
   

  	
  2.8

  	
  Restrictions on Sales

  	
  7

  
	
   

  	
  2.9

  	
  Buyer’s Failure to Pay

  	
  8

  
	
   

  	
  2.10

  	
  Use of Liberty Project Resources for Deficiencies

  	
  8

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Pricing and Payment Terms

  	
  8

  
	
   

  	
  3.1

  	
  Base Product Price

  	
  8

  
	
   

  	
  3.2

  	
  Additional Product Price

  	
  9

  
	
   

  	
  3.3

  	
  Determination of Market Price

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Deliveries and Invoices

  	
  9

  
	
   

  	
  4.1

  	
  Delivery Point

  	
  9

  
	
   

  	
  4.2

  	
  Invoices

  	
  9

  
	
   

  	
  4.3

  	
  Assaying Adjustments

  	
  10

  
	
   

  	
  4.4

  	
  No Prejudice

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Term; Termination

  	
  11

  
	
   

  	
  5.1

  	
  Term

  	
  11

  
	
   

  	
  5.2

  	
  Termination

  	
  11

  
	
   

  	
  5.3

  	
  Effect of Termination

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Indemnification

  	
  12

  
	
   

  	
  6.1

  	
  Procedure

  	
  12

  
	
   

  	
  6.2

  	
  Remedies

  	
  12

  
	
   

  	
  6.3

  	
  Limitations

  	
  13

  
	
   

  	
  6.4

  	
  Indemnification by Seller

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Force Majeure

  	
  13

  

 

i

 

	
  8.

  	
  Confidentiality

  	
  14

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Waiver

  	
  15

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Governing Law; Language

  	
  15

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Notices

  	
  16

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Rules of Construction

  	
  16

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Assignment; No Benefit

  	
  17

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Relationship of the Parties

  	
  17

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Severability

  	
  17

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Taxes and Expenses

  	
  17

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Currency

  	
  18

  
	
   

  	
   

  	
   

  
	
  18.

  	
  Counterparts

  	
  18

  
	
   

  	
   

  	
   

  
	
  19.

  	
  Entire Agreement

  	
  18

  
	
   

  	
   

  	
   

  
	
  20.

  	
  Amendment

  	
  18

  
	
   

  	
   

  	
   

  
	
  21.

  	
  Waiver of Jury Trial

  	
  18

  
	
   

  	
   

  	
   

  
	
  22.

  	
  Dispute Resolution

  	
  18

  
	
   

  	
   

  	
   

  
	
  23.

  	
  Limitation of Liability

  	
  18

  
	
   

  	
   

  	
   

  
	
  24.

  	
  Remedies Cumulative

  	
  18

  
	
   

  	
   

  	
   

  
	
  25.

  	
  Safety, Health and the Environment

  	
  18

  
	
   

  	
   

  	
   

  
	
  26.

  	
  No Fraud; No Corruption

  	
  19

  
	
   

  	
   

  	
   

  
	
  27.

  	
  Relationship to Hanlong Supply Agreement

  	
  19

  
	
   

  	
   

  	
   

  
	
  28.

  	
  Joint and Several Liability

  	
  19

  
	
   

  	
   

  	
   

  
	
  29.

  	
  Entry into Other Supply Agreements

  	
  20

  

 

ii

 

EXTENSION MOLYBDENUM SUPPLY AGREEMENT

 

THIS
EXTENSION MOLYBDENUM SUPPLY AGREEMENT (this “Agreement”), dated April 16,
2010, and effective as of the Effective Date (defined below), is among General
Moly, Inc., a Delaware corporation (the “Company”), Nevada Moly,
LLC, a Delaware limited liability company (“Nevada Moly” and together
with the Company, “Seller”), and ArcelorMittal Purchasing SAS, a French
joint stock company (“Buyer”), acting as an agent in the name and on
behalf of its Affiliates (as defined below) for which it has a mandate to
purchase the Products (as defined below) from time to time.

 

RECITALS

 

A.            Eureka Moly,
LLC, a Delaware limited liability company (“Eureka Moly”), leases and intends
to operate a mine located in Eureka County, Nevada (the “Mount Hope Mine”)
from which it intends to produce Technical Grade Molybdenum Oxide (“TMO”),
in the form of powder and carbon-free briquettes, that meets or exceeds the
standards on Schedule A (such TMO produced from the Mount Hope
Mine, the “Products”).

 

B.            As of the date
hereof, (1) the Company owns 100% of Nevada Moly, which owns an 80% equity
interest in Eureka Moly and (2) POS-Minerals Corporation, a Delaware
corporation and affiliate of POSCO Canada Ltd., owns a 20% equity interest in
Eureka Moly.

 

C.            As of the date
hereof ArcelorMittal S.A., a company incorporated under the laws of Luxembourg
(“AM SA”) owns approximately 8,256,699 shares of the Common Stock (as
defined below).

 

D.            The Company and
Buyer have on 20 December 2007 entered into the Existing ArcelorMittal
Supply Agreement (as defined below).

 

E.             Seller wants to
sell to Buyer, and Buyer wants to purchase from Seller, Products available from
Seller’s share of production at the Mount Hope Mine (as defined below), and, to
the extent of a shortfall of production, from the Seller’s share of production
from the Liberty Project (as defined below), upon the terms and subject to the
conditions set forth herein, which are intended to come into existence after
the expiry of the Existing ArcelorMittal Supply Agreement.

 

In
consideration of the mutual covenants contained in this Agreement,  the parties, intending to be legally bound,
agree as follows:

 

AGREEMENT

 

1.             Definitions and Interpretation.

 

1.1          Definitions.  In
addition to the capitalized terms defined elsewhere in this Agreement, for
purposes of this Agreement:

 

“Adjusted Market
Price”:  (a) Market Price
times (b) {****}.

 

1

 

“Affiliate”:  Means any Person means any other Person
directly or indirectly, through one or more intermediaries, controlling,
controlled by or under common control with such Person.  A Person will be deemed to control another
Person if the controlling Person is the beneficial owner of greater than 50% of
any class of voting securities (or other voting or equity interests) of the
controlled person or possesses, directly or indirectly, the power to direct or
cause the direction of the management or policies of the controlled Person,
whether through ownership of capital stock, by contract or credit arrangement,
as trustee or executor, or otherwise; provided none of the Company and
its subsidiaries shall be deemed an affiliate of Buyer and neither Buyer,
POS-Minerals Corporation, China Han Long Mining Development Limited, a Hong
Kong corporation, nor any of their respective Affiliates shall be deemed to be
an affiliate of the Company or Nevada Moly.

 

“beneficial
ownership” and correlative terms:  As
determined pursuant to Rule 13d 3 and Rule 13d-5 under the Securities
Exchange Act of 1934, as amended, and any successor regulation.

 

“Business
Day”:  A day other than a Saturday,
Sunday or other day on which commercial banks in New York City are authorized
or required by Law to close.

 

“Common
Stock”: The Company’s common stock, par value $0.001 per share.

 

“Competent
Authority”:  The Person or Persons so
designated by Buyer.

 

“Delivery
Point”: Means {****}.

 

“Dollars”
The lawful currency of the United States.

 

“Effective
Date”: Means the date on which (i) the Existing ArcelorMittal Supply
Agreement expires or earlier terminates, and (ii) all of the conditions
set forth in Section 2.1 have been satisfied; provided that
this Agreement shall not become effective (a) if the Existing
ArcelorMittal Supply Agreement is terminated by the Company pursuant to Section 8.2
of the Existing ArcelorMittal Supply Agreement, or (b) unless and until
the Hanlong Supply Agreement has become effective.

 

“Eureka
Moly LLC Agreement”: The Amended and Restated Limited Liability Company
Agreement of Eureka Moly, LLC, dated February 26, 2008, between Nevada
Moly and POS-Minerals Corporation.

 

“Existing
ArcelorMittal Supply Agreement”: The Molybdenum Supply Agreement, dated December 28,
2007, between the Company and Buyer.

 

“Existing
Obligations”:  Seller’s
obligations relating to the supply of Products from Seller’s share of
production at the Mount Hope Mine that are in existence as of the date of this
Agreement (other than the Existing ArcelorMittal Supply Agreement), and are set
forth in Schedule B.

 

“FCA”:  Means the delivery
of goods on truck, rail car or container at the specified point (depot) of
departure, which is usually the seller’s premises, or a named railroad station
or a 

 

2

 

named
cargo terminal or into the custody of the carrier, at seller’s expense. The
point (depot) at origin may or may not be a customs clearance center. Buyer is
responsible for the main carriage/freight, cargo insurance and other costs and
risks.

 

“First
Threshold”:  An amount calculated as
follows:

 

US${****}
per pound of molybdenum

 

x  Threshold Adjustment

 

For
clarification, (a) the First Threshold will only be adjusted annually,
which will occur within 30 days of the information necessary to calculate
the applicable {****} Percentage increase becoming publicly available {****},
and (b) to the extent the information necessary to calculate such
adjustment is not available at the beginning of the applicable year, the
adjustment will be calculated when such information becomes available and
applied retroactively to the beginning of such year.

 

“Floor
Price”:  An amount per pound
calculated as follows:

 

US${****}
per pound of molybdenum

 

x  (1 + {****} Percentage Increase)

 

For
clarification, (a) the Floor Price will only be adjusted {****}, which
will occur within {****} of the information necessary to calculate the
applicable {****} Percentage increase becoming publicly available {****},
(b) to the extent the information necessary to calculate such adjustment
is not available {****}, the adjustment will be calculated when such
information becomes available and applied retroactively {****}, and
(c) the Floor Price will be calculated as set forth above regardless of
the Market Price or any other adjustments to the Product Price.

 

“Hanlong Supply Agreement”
means that certain Molybdenum Supply Agreement, dated March 4, 2010, among
the Company, Nevada Moly, China Han Long Mining Development Limited, a Hong
Kong corporation and Hanlong (USA) Mining Investment, Inc., a Delaware
corporation.

 

“Law”:  Any applicable U.S. federal, state or local
or any foreign statute, code, ordinance, decree, rule, regulation or general
principle of common or civil law or equity.

 

“Losses”:   Any claims, losses, liabilities, damages,
demands, fines, penalties, administrative and judicial proceedings and orders,
judgments, remedial action, enforcement actions of any kind, and all reasonable
and documented costs and expenses incurred in connection therewith (including
reasonable attorneys’ fees).

 

“Market
Price”:  Means the average of the
Platt’s Metals Week published prices for TMO Dealer Oxide over (a) {****}
or (b) {****}, as Buyer may determine annually pursuant to Section 3.3.  In the event that the basis for the Market
Price currently in general use ceases to exist or ceases to be published,
Seller and Buyer shall meet promptly with a view to agreeing on a new pricing
basis and the date for bringing such basis into effect.

 

3

 

“New
York City”:  New York, New York,
U.S.A.

 

“Person”:  An individual, limited or general
partnership, corporation, trust, limited liability company, unincorporated
organization, association, joint venture or a government or agency or political
subdivision or instrumentality thereof.

 

“{****}
Percentage Increase”:  {****}.

 

“Product
Price”:  As defined in Section 3.

 

“Second
Threshold”:  An amount calculated as
follows:

 

US${****}
per pound

 

x  Threshold Adjustment

 

For
clarification, (a) the Second Threshold will only be adjusted annually,
which will occur within 30 days of the information necessary to calculate
the applicable {****} Percentage increase becoming publicly available {****},
(b) to the extent the information necessary to calculate such adjustment
is not available at the beginning of the applicable year, the adjustment will
be calculated when such information becomes available and applied retroactively
to the beginning of such year, and (c) in no event shall Second Threshold
be less than the Floor Price.

 

“Seller’s
Share of Product”:  Product
distributed or distributable to Nevada Moly or its Affiliates pursuant to Article 10
of the Eureka Moly LLC Agreement or otherwise constituting Products to which
Nevada Moly has distribution or sale rights.

 

“SGS
Group”: A group of entities associated with SGS SA, a Swiss société
anonyme.

 

“Sojitz
Agreement”: The Molybdenum Supply Agreement, dated August 8, 2008,
between the Company and Sojitz Corporation

 

“Term”:  The term of this Agreement.

 

“Three-Month
LIBOR”:  Means the three month LIBOR
rate as published in The Wall Street Journal
on the date an applicable invoice is due hereunder.  If Three-Month LIBOR is not available from
such source, the Three-Month LIBOR will be based on the arithmetic mean of the
respective rates quoted by at least two leading reference banks selected by
Seller offered to leading banks for deposits in Dollars for a period of three
months in the London interbank market at or about 11:00 a.m. (London,
England time) on the date an applicable invoice is due hereunder.

 

“Threshold
Adjustment”:  An amount calculated as
follows:

 

1  + 
(Percentage {****} Increase 
/  2)

 

“Trigger
Date” has the meaning ascribed to it under the Existing ArcelorMittal
Supply Agreement.

 

4

 

“United
States” or “U.S.” or “U.S.A.”:  The United States of America.

 

“US$”:  Dollars.

 

1.2          Interpretation.

 

1.2.1                Unless the context of this Agreement otherwise clearly requires,
(i) references to the plural include the singular, and references to the
singular include the plural, (ii) references to one gender include the
other gender, (iii) the words “include,” “includes” and “including” do not
limit the preceding terms or words and shall be deemed to be followed by the
words “without limitation,” (iv) the terms “hereof,” “herein,” “hereunder,”
“hereto” and similar terms in this Agreement refer to this Agreement as a whole
and not to any particular provision of this Agreement, (v) reference to
day, without the explicit qualification of “business” refers to a calendar day,
(vi) references to a month, quarter, year or such other subdivision,
without the explicit qualification of “fiscal”, refers to a calendar month,
quarter, year or other such subdivision, respectively (vii) all references
to “the date hereof,” “the date of this Agreement” or similar terms (but
excluding references to the date of execution hereof) refer to the date first
above written, notwithstanding that the parties may have executed this
Agreement on a later date, (viii) any reference to “pounds” in this
Agreement refers to pounds of molybdenum contained in the Products, and (ix) references
to any Person include such Person’s respective successors, assigns, transferees,
lessees, heirs, executors and administrators, whether by merger, consolidation,
amalgamation, reorganization, sale of assets or otherwise.

 

1.2.2                Unless otherwise set forth herein, references in this Agreement to
(i) any document, instrument or agreement (including this Agreement)
(A) include and incorporate all exhibits, schedules and other attachments
thereto, (B) include all documents, instruments or agreements issued or
executed in replacement thereof and (C) mean such document, instrument or
agreement, or replacement or predecessor thereto, as amended, modified or
supplemented from time to time in accordance with its terms and in effect at
any given time, and (ii) a particular Law referenced herein means such Law
as amended, modified, supplemented or succeeded, from time to time and in
effect at any given time.  When a
reference is made in this Agreement to Articles, Sections or any other
subdivision, such reference is to an Article, a Section or other
subdivision of this Agreement, unless otherwise indicated.  When a reference is made in this Agreement to
a party or parties, such reference is to parties to this Agreement, unless
otherwise indicated.

 

1.2.3                The headings and captions of the various subdivisions of this Agreement
are for convenience of reference only and shall in no way modify or affect the
meaning or constructions of any of the terms or provisions hereof.

 

2.             Effectiveness; Supply and Purchase of Product.

 

2.1          Effectiveness. 
This Agreement shall have no force and effect unless the
following conditions have been met:

 

2.1.1                AM SA, together with its Affiliates, shall have beneficial ownership of
more than 11,100,000 shares of Common Stock, provided, that such
required number of shares of Common Stock shall be adjusted, as appropriate, if
the Company shall, at 

 

5

 

any time after the date of
this Agreement, declare or pay any dividend on the Common Stock payable in
shares of Common Stock, or effect a subdivision or combination or consolidation
of the outstanding shares of Common Stock (by reclassification or otherwise
than by payment of a dividend in shares of Common Stock) into a greater or
lesser number of shares of Common Stock; and

 

2.1.2                On or prior to April 15, 2015, Buyer shall have sent written notice
to Seller indicating that (i) Buyer elects to make this Agreement
effective, and (ii) the condition set forth in Section 2.1.1
has been satisfied.

 

2.2          Supply of Product Prior to Effective Date.  No obligations to supply or purchase Products
under this Agreement will exist prior to the Effective Date.

 

2.3          Supply of Products Following Effective Date.  After the Effective Date, upon the terms and
subject to the conditions set forth in this Agreement, each year, Seller agrees
to supply and sell to Buyer, and Buyer agrees to purchase from Seller, the
lesser of (a) 3,000,000 pounds or (b) 100% of Seller’s Share of
Product (less the Existing Obligations) for such year plus
any TMO supplied pursuant to Section 2.10.

 

2.4          Delivery Schedule; Shortfalls.  Deliveries of the Products under this
Agreement will be made by Seller to Buyer in approximately equal monthly
installments.  Buyer and Seller will
reasonably cooperate with each other in connection with forecasting, ordering
and delivery schedules and procedures. 
Without limiting the foregoing, prior to the first day of each month,
Seller shall provide Buyer with the schedule for shipment of Product in the
following month that commences at least 30 days after the date the schedule is
provided to the Buyer.  In the event that
Seller does not deliver the full installment amount of Products in any given
year, or shorter period for the first and last year of the Term, if this
Agreement begins or ends on a date other than January 1, Buyer is entitled
to demand that any available portion of the shortfall (the “Shortfall Amount”)
be delivered in the three month(s) following the end of such year  provided  that
(a) Seller’s Share of Product, less any amount required to be delivered
pursuant to Section 2.3 or committed pursuant to the Existing
Obligations, is sufficient to meet the Shortfall Amount, and (b) any
Products that any third party owns or controls will not be considered available
to fulfill any Shortfall Amount.  In the
event of such a shortfall, Seller agrees not to sell any Products to any third
party, except pursuant to the Existing Obligations, without Buyer’s prior
written consent unless and until any properly requested Shortfall Amount has
been delivered.

 

2.5          Take-or-Pay. 
Except as set forth in this Section 2.5, Buyer shall take
delivery of Products made available by Seller in the amounts and on the terms
set forth in this Agreement. 
Notwithstanding anything herein to the contrary, Buyer agrees that in
the event that Buyer fails to take delivery of Products made available by
Seller in the amounts and on the terms set forth in this Agreement, (a) Buyer
will still be obligated to pay Seller with respect to such Products as though
Buyer had taken delivery pursuant to the terms of this Agreement, and (b) Seller
shall store such Product free of charge for 30 days after the initial delivery
date.  If Buyer has not taken the
Products 30 days after the initial delivery date for any reason, Seller agrees
to continue to store the Products without cost to Buyer if Seller reasonably
has space and the availability to do without disruption of Seller’s
operations.  If after the initial 30 day
period Seller is unable to continue to store such Products on site for Buyer
without incurring additional 

 

6

 

costs for storage containers or other third party
expenses, then Buyer shall pay Seller all out-of-pocket expenses incurred by
Seller related to the storage, carrying and handling of such Product.  Seller shall invoice Buyer for the costs and
expenses related to the handling, carrying and storing of such Product.  If Seller fails to pay such invoice for a
period of 60 days after the issuance of such invoice, Seller shall have the
right to sell enough of the stored Product sufficient to pay such outstanding
invoice.  Notwithstanding the foregoing, (i) if
Buyer has not taken the Products on the initial delivery date because of an
Event of Force Majeure that makes it impossible for Buyer to take delivery,
Seller shall store Products for Buyer without cost to Buyer for the first 60
days during the continuation of such an Event of Force Majeure, and (ii) thereafter,
all such Products shall be treated as otherwise provided in this Section 2.5.

 

2.6          Composition of Products.  Product shall be TMO powder in bulk super
sacks or other such form of TMO product manufactured by Seller that is
reasonably acceptable to Buyer.  No later
than 30 days prior to the first day of each quarter during the Term of this
Agreement, Buyer shall notify Seller of the form of Product it wishes to
purchase in the following quarter. 
Seller shall produce the requested form of Product unless it is
commercially unreasonable to produce such form of Product.  If Seller determines that a requested form of
Product is commercially unreasonable to produce, it will deliver TMO powder in
bulk super sacks, or such other form of Product that Buyer requests that is
commercially reasonable to produce. 
Notwithstanding the foregoing, if Buyer requests any change in the
agreed form of Product supplied during any quarter, Seller shall, subject to
the terms of Section 3.2, and receipt of reasonable advance notice
from Buyer, use commercially reasonable efforts to provide the new form of
Product requested.

 

2.7          Specifications.  The specifications and technical requirements
of the Products to be delivered hereunder are set forth in Schedule A
(the “Specifications”). 
Notwithstanding anything to the contrary, Buyer will not be required
hereunder to purchase any Products which do not comply with the
Specifications.  Seller will, at its
expense, supply a certificate confirming that each shipment of Products
complies with the Specifications.

 

2.8          Restrictions on Sales.

 

2.8.1                Without the prior written consent of Seller (which shall be at the sole
discretion of Seller), until the expiration or earlier termination of the
Sojitz Agreement, Buyer will not (a) sell, transfer or otherwise
distribute any Products within Japan, or enter into an agreement or arrangement
with another party for its sale, transfer or distribution of Products within
Japan, or (b) take any other action to intentionally circumvent the
restriction set forth in clause (a) above.

 

2.8.2                Without the prior written consent of Seller (which shall be at the sole
discretion of Seller), Buyer will not (a) sell, transfer or otherwise
distribute any Products within the People’s Republic of China, or enter into an
agreement or arrangement with another party for its sale, transfer or
distribution of Products within the People’s Republic of China, or
(b) take any other action to intentionally circumvent the restriction set
forth in clause (a) above. Notwithstanding the foregoing, Buyer may sell,
transfer or otherwise distribute Products to any of its Affiliates located
within the People’s Republic of China, provided, that such Affiliates 

 

7

 

shall not further sell,
transfer or otherwise distribute any Products within the People’s Republic of
China.

 

2.8.3                Other than stated in Sections 2.8.1 and 2.8.2, Buyer shall
be free to sell the Products delivered by the Seller to any of its Affiliate or
any third party.

 

2.8.4                For the sake of clarity, Buyer shall be free to sell the Products through
public trading platforms (such as London Metal Exchange) at any time
notwithstanding limitations contained in Sections 2.8.1 and 2.8.2.

 

2.9          Buyer’s Failure to Pay.  Without limiting any other rights set forth
in this Agreement, including the termination rights set forth in Section 5,
Seller shall have no obligation to deliver any Products to Buyer if any invoice
required to be paid by Buyer pursuant to this Agreement remains unpaid for a
period of sixty (60) days after the due date for such invoice, unless such
invoice is being contested in good faith. 
In the case of a dispute, the undisputed portion of the invoice shall be
paid in accordance with the terms of this Agreement and the contested portion
of the invoice shall be resolved in accordance with Section 22.

 

2.10        Use of Liberty Project Resources for Deficiencies.  If at
any time after the Effective Date, production at the Mount Hope Mine is not
sufficient for Seller to deliver 3,000,000 pounds per year to Buyer, Seller
will, to the extent commercially reasonable, supply any such deficiency from available
TMO complying with the Specifications produced from its Liberty Project in Nye
County, Nevada (the “Liberty Project”) that Seller does not otherwise
sell to a third party.  Notwithstanding
the foregoing, nothing in this Agreement will prohibit Seller or any of its
Affiliates from entering into any supply agreement with respect to Products
produced at the Liberty Project.

 

3.             Pricing and Payment Terms. 
The price payable by Buyer to Seller for Products supplied by Seller to
Buyer pursuant to this Agreement (the “Product Price”) shall be
(a) for 50% of Products delivered, equal to the Adjusted Market Price plus
the Additional Product Price, if applicable; and (b) for 50% of Products
delivered, equal to the Base Product Price plus the Additional Product Price,
if applicable, subject to adjustment as set forth elsewhere in this Agreement.

 

3.1          Base Product Price.  The base price payable by Buyer to Seller for
Products supplied by Seller to Buyer pursuant to this Agreement (the “Base
Product Price”) will be as follows:

 

3.1.1                If the Market Price is less than or equal to the Floor Price, the Base
Product Price will be equal to the Floor Price; and

 

3.1.2                If the Market Price exceeds the Floor Price, the Base Product Price will
be determined as follows:

 

(a)           If the Market Price is less than or equal to the
First Threshold, the Base Product Price will be calculated as follows:

 

8

 

Floor
Price

+   [(Market Price – Floor
Price)  x 
{****}]

 

(b)                                 If the Market Price is more
than the First Threshold but less than the Second Threshold, the Base Product
Price will be calculated as follows:

 

Floor
Price

+   [(First Threshold – Floor
Price)  x  {****}]

+   [(Market Price – First
Threshold)  x  {****}]

 

(c)                                  If the Market Price exceeds
the Second Threshold, the Product Price will be calculated as follows:

 

Floor
Price

+   [(First Threshold – Floor
Price)   x  {****}]

+   [(Second Threshold – First
Threshold)  x  {****}]

+   [(Market Price – Second
Threshold)  x  {****}]

 

3.2          Additional Product Price.  Buyer will pay an additional amount (the “Additional
Product Price”) for Products that are supplied hereunder (as agreed to by
Buyer and Seller as set forth herein) in a form other than TMO powder packaged
in bulk super sacks, equal to Seller’s additional costs to (i) convert
such Products from the form required to be delivered hereunder to such other
form of Products, and (ii) package such other form of Product, plus {****} of such additional cost.

 

3.3          Determination of Market Price.  No later than November 30 of each year
during the term of this Agreement, Buyer will give written notice to Seller of
the percentage of Product to be delivered during the following calendar year to
which the pricing basis described in clause (a) of the definition of “Market
Price” in Section 1.1 will apply, and the percentage of Product to
be delivered during the following year to which the pricing basis described in
clause (b) of the definition of “Market Price” in Section 1.1
will apply, which will aggregate 100%.

 

4.             Deliveries and Invoices.

 

4.1          Delivery Point.  Except as otherwise set forth herein, all
Products will be delivered to the Delivery Point.  The Product Price calculations provided in
this Agreement are on an FCA Delivery Point basis for delivery by Seller to the
Delivery Point.  Title and risk in each
shipment of Products will pass from Seller to Buyer upon delivery  FCA Delivery Point.

 

4.2          Invoices.

 

4.2.1                On or after the earlier of Seller’s receipt of a bill of lading
evidencing Buyer’s receipt of Product at the Delivery Point, and the end of
each month, Seller will invoice Buyer by sending an invoice to the Competent
Authority for the Product delivered 

 

9

 

(or for which Buyer is
obligated to pay pursuant to Section 2.5 during that month), and
the corresponding Product Price.

 

4.2.2                If at the time of Seller’s receipt of a bill of lading or the end of a
month, the price for the Product sold has not been determined, Seller will
issue a provisional invoice based on the average Product Price of Products
delivered in the prior month in which the Product Price was known (a “Provisional
Invoice”).  If a Provisional Invoice
is issued, Buyer shall pay 90% of the amount of such Provisional Invoice
pursuant to the terms of Section 4.2.  Seller shall issue a final invoice as soon as
the correct Product Price is known, which shall set forth the difference, if
any, between the amount paid pursuant to the Provisional Invoice and the
correct Product Price.  To the extent
that the actual Product Price exceeds the amount paid pursuant to the
Provisional Invoice, Buyer shall promptly pay such difference to Seller.  To the extent that the actual Product Price
is less than the amount paid pursuant to the Provisional Invoice, such amount
shall be credited against the amount owed by Buyer on the next invoice issued
by Seller to Buyer.

 

4.2.3                The amount shown on such invoice (or 90% of the amount in the case of a
Provisional Invoice) will be due and payable by wire transfer to an account
identified by Seller within {****} the issuance of the invoice.  If Buyer fails to pay any invoice amount due
pursuant to this Agreement on or before the applicable due date, interest on
the unpaid amount at a rate per annum equal to Three-Month LIBOR plus 1.5% will
accrue daily from the applicable due date until the date the unpaid amount is
paid and shall be due and payable at the time when the unpaid amount is paid or
otherwise within five Business Days after demand by Seller therefor.

 

4.3          Assaying Adjustments.

 

4.3.1                Buyer has the right to appoint a neutral sampler (the “Sampler”),
approved by Seller (which approval will not be unreasonably withheld or delayed),
to take samples of the Products at the Delivery Point.  In the event that Buyer determines that
Seller has delivered non-conforming Product which should result in an
adjustment to the Product Price (an “Assay Adjustment”), Buyer will
notify Seller in writing of such determination (along with its results of
analysis of such Product) within 60 days of delivery of such Product.  Buyer and Seller will appoint a mutually
agreeable third party to assist in the resolution of such matter (the “Referee”)
within 30 days of delivery of such notice. 
If Buyer and Seller fail to appoint the Referee within such 30-day
period, SGS Group (or such other mutually agreeable third party, in the event
that SGS Group or its successor ceases to exist) will appoint the Referee at
either Buyer’s or Seller’s request.  The
Referee will analyze the sample of such Product taken by the Sampler and the
closest to the Referee’s results of either the assay set forth in the notice
delivered by Buyer pursuant to this Section 4.3.1, or the assay set
forth in the relevant certificate supplied by Seller pursuant to Section 2.7
will be final and binding upon Buyer and Seller, in the event of a tie the
Referee results will govern.

 

4.3.2                The costs and expenses related to the procedures set forth in this Section 4.3
(including the costs of the Sampler) will be borne by the party whose results
are furthest from the results of the Sampler. 
In the event that the results of the Sampler are exactly between those
of Seller and the Buyer, each of Seller and the Buyer will bear 50% of any such

 

10

 

costs and expenses.  For the purpose of the foregoing, the “results”
of Seller will refer to the assay results set forth on the related invoice.

 

4.3.3                In the event that the final determination results in an obligation on a
party to pay additional amounts or to reimburse any sum, such payment or
reimbursement will be settled promptly by credit or debit notes and the invoice
following the final determination shall be adjusted accordingly.

 

4.4          No Prejudice. 
Payment of an invoice by Buyer does not constitute acceptance of the
Products covered by such invoice and is without prejudice to any and all claims
Buyer may have against Seller in connection therewith.  Buyer will have the right to accept any
portion of any shipment of Products notwithstanding that it may reject the
balance thereof.  Acceptance by Buyer of
all or any portion of a shipment of Products will not constitute a waiver of
any claim which Buyer may have regarding the Products.

 

5.             Term; Termination.

 

5.1          Term.  The term of
this Agreement will commence on the Effective Date and expire ten (10) years
after the Effective Date, unless earlier terminated in accordance with the
terms of this Agreement, or extended in writing by the parties.

 

5.2          Termination.  This
Agreement may be terminated by:

 

5.2.1                either Buyer or Seller at any time in the event of a material breach of
this Agreement by the other, provided a written termination notice
identifying the material breach has been given to the breaching party and the
breach has not been cured within 60 days from the date of said notice; provided
further  that for clarification purposes
any breach of Section 2.8 will be considered to be a “material
breach” of this Agreement; or

 

5.2.2                either Buyer or Seller at any time, by written notice, in the event:

 

(a)           of insolvency of the other;

 

(b)           of the filing of a voluntary petition in
bankruptcy of the other;

 

(c)           of the making of an assignment for the benefit
of creditors by the other, excluding assignments of accounts receivable;

 

(d)           of the inability of the other to pay its debts
as they come due;

 

(e)           the other has a receiver or other custodian of
any kind appointed to administer any substantial amount of the other’s
property;

 

11

 

(f)            of the filing of an involuntary petition in
bankruptcy with respect to the other;

 

(g)           any proceedings for the reorganization of the
other, or for the readjustment of any of the other’s debts, under any laws, now
or hereafter existing, for the relief of insolvent debtors, will be commenced
by or against the other; or

 

(h)           of the discontinuation of the other of its
business;

 

5.2.3                by Buyer, in the event that after the Effective Date, Seller fails to
meet the delivery requirements of Products set forth in Section 2
for a period of ninety (90) days, provided a written termination notice
identifying the failure to delivery Product has been given to Seller and the
failure has not been corrected within 30 days from the date such notice was
given; or

 

5.2.4                by Seller, in the event that Buyer fails to pay any amount required to be
paid by Buyer pursuant to this Agreement on or before the due date therefor
under this Agreement, provided a written termination notice identifying
the unpaid amount has been given to Buyer and the invoice has not been paid
within 60 days from the date such notice was given.

 

5.3          Effect of Termination.  Unless notified otherwise by Buyer, upon a
termination of this Agreement, Seller will fill all outstanding obligations to
supply the Products in accordance with the terms of this Agreement.  Buyer will accept and pay for all conforming
Products delivered in accordance herewith. 
Termination will be without prejudice to the rights and obligations of
the parties which have accrued prior to the effective date of termination.  Sections 4, 6 and 8
through 24, inclusive, will survive the expiration or termination of
this Agreement.

 

6.             Indemnification.

 

6.1          Procedure.  If
Buyer claims that any of the Products fail to conform with the Specifications
or fail to be in compliance with all applicable laws (excluding claims relating
to Assay Adjustments which will be resolved in accordance with Section 4.3),
Buyer will notify Seller of its claim (“Claim”), and provide Seller with
all relevant documentation of the Claim, no later than 60 days after the
date of delivery of such Products.  Upon
receipt of a Claim, Seller will have the right to inspect such Products and all
evidence of the Claim, and Seller and Buyer will attempt to reach an agreement
as to whether the Claim is valid.

 

6.2          Remedies.  If it is
determined by Buyer and Seller that the Claim is valid, Seller will elect one
of the following actions to remedy the failure, and will deliver notice thereof
to Buyer 30 days prior to taking any such action:

 

6.2.1                delivering to Buyer conforming Products to replace the nonconforming
Products;

 

12

 

6.2.2                refunding to Buyer the purchase price paid by Buyer with respect to the
nonconforming Products in return provided that Seller will have the option to
take possession of the nonconforming Products; or

 

6.2.3                applying a credit to the next purchase to be made by Buyer hereunder.

 

If,
upon receipt of notice of the intent to take one of the actions above, Buyer
instead desires Seller to take another action listed above to remedy the
failure, Buyer will deliver notice of such desire to Seller.  If upon delivery of such notice Buyer and
Seller do not agree on the action to be taken, such matter will be resolved
pursuant to the arbitration procedures set forth in Section 22.  The removal and replacement of nonconforming
Products will be at Seller’s sole expense (including all costs of
transportation, duties, taxes and insurance), and Seller will reimburse Buyer
for all costs (including all costs incurred with respect to transportation,
duties, taxes and insurance) incurred by Buyer in connection with the
replacement of nonconforming Products.

 

If
Buyer and Seller cannot agree on the validity of a Claim, such matter will be
considered a Dispute and will be resolved pursuant to the procedures set forth
in Section 22.

 

6.3          Limitations.  TO
THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EXCEPT AS PROVIDED HEREIN,
SELLER EXPRESSLY DISCLAIMS, AND MAKES NO OTHER EXPRESS OR IMPLIED WARRANTIES OF
ANY TYPE, WHETHER OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR USE
OR OTHERWISE, WITH RESPECT TO THE PRODUCTS.

 

6.4          Indemnification by Seller.  Seller will at all times defend, indemnify,
protect and hold harmless Buyer and its affiliates and their directors,
officers, agents, employees, participants and assigns, from and against any and
all Losses arising in whole or in part out of the willful misconduct and/or negligent
performance of any obligations of Seller under this Agreement; provided,  however, that Seller will not be required to
indemnify any indemnified Person for any Losses to the extent resulting from
the misconduct or negligence of such indemnified Person.

 

7.             Force Majeure.  Neither Buyer nor Seller will be liable to
the other for default or delay in the performance of its obligations hereunder
when and to the extent that such default or delay is caused by order,
injunction or stay entered by any court with valid jurisdiction, war, civil
commotion, strike, labor dispute, work stoppage or slowdown, storm,
earthquake, explosion, insurrection, epidemic or quarantine restriction, fire,
flood, act of God, the inability to maintain in full force and effect all
permits required to carry out planned mining operations due to intervention of
government  or any other similar
contingency beyond the reasonable control of the parties (the occurrence of any
of the foregoing will be an “Event of Force Majeure”); provided, however,
that no Event of Force Majeure will have occurred in the event of a strike,
labor dispute, work stoppage or slowdown initiated by, or involving only,
workers or employees within Seller’s organization.  The 
occurrence of an Event of Force Majeure will not terminate this
Agreement, absent the written consent of the parties otherwise; provided, however, that Buyer may, at its option, terminate
this Agreement if an Event of Force Majeure prevents, or 

 

13

 

Buyer reasonably anticipates that it will prevent,
Seller from meeting its obligations in whole or in substantial part under this
Agreement for more than ninety consecutive days during the Term.  Both Seller and Buyer will use their
commercially reasonable best efforts to avoid the occurrence and remove the
causes of an Event of Force Majeure and to continue performance of their
respective obligations hereunder promptly following the removal of such
causes.  If an Event of Force Majeure
prevents a party from meeting its obligations hereunder in part, but not in
whole, the parties will use their commercially reasonable best efforts to
equitably adjust the parties’ respective obligations hereunder consistent with
and in furtherance of the purposes hereof. 
Should Seller invoke force majeure conditions, the Buyer will be
entitled to obtain from alternative sources such Products as it reasonably
requires during the period that Events of Force Majeure subsist, and the quantities
Products obtained under such conditions will be deducted from the amount of
Products Buyer is required to purchase hereunder.

 

8.             Confidentiality.

 

8.1           During the Term, each of Buyer and Seller will be in a position to
receive certain of each other’s confidential, privileged and proprietary
information (“Confidential Information”); provided that
Confidential Information excludes any information:

 

8.1.1                which is or becomes available to the public through no act, omission or
fault of, and absent any breach of a covenant or obligation hereunder by, the
party whose obligation it is to keep such information confidential;

 

8.1.2                which the party whose obligation it is to keep such information
confidential may have received lawfully from any third party without
restrictions as to disclosure thereof and without breach of this Agreement; or

 

8.1.3                which was developed by the party whose obligation it is to keep such
information confidential without (as established by documentation or by other
appropriate evidence) the use of the other party’s Confidential Information or
any breach of this Agreement or any other agreement.

 

Seller
agrees that the Confidential Information of Buyer, and Buyer agrees that the
Confidential Information of Seller, is an integral and key part of the assets
of each respective entity and that the unauthorized use or disclosure of the
other party’s Confidential Information would seriously damage the owner thereof
in its business.  As a consequence of the
above, Seller and Buyer hereby agree that, during the Term and thereafter:

 

8.2           During the term of this Agreement and until the fifth anniversary of the
expiration or earlier termination of this Agreement, neither of Seller and
Buyer will, directly or indirectly:

 

8.2.1                use any of the other party’s Confidential Information, except as may be
necessary to perform its obligations hereunder; or

 

8.2.2                disclose, furnish or make accessible, or cause any person to disclose,
furnish or make accessible, any aspect of the other party’s Confidential
Information to any Person (other than the other party),

 

14

 

except,
in either case Section 8.2.1 or 8.2.2, as set forth in Section 8.1.2
or as may be expressly authorized by the other party in writing or as required
by Law or pursuant to a court order; provided, however,
that prior to any compelled disclosure, the party whose obligation it is to
keep such information confidential will have given the other party notice of
the circumstances relating to such compelled disclosure and an opportunity to seek
an appropriate protective order with respect thereto.

 

8.3           Except as required by Law or pursuant to a court order, each of Seller
and Buyer will:

 

8.3.1                use no less than the care a reasonably prudent Person would use in
safeguarding his, her or its Confidential Information;

 

8.3.2                limit access to the other party’s Confidential Information to its
employees and representatives who require access to such Confidential
Information for the purposes of performing its obligations hereunder and who
have agreed to be bound by the terms of this Section 8; and

 

8.3.3                refrain from any action or conduct which might reasonably or foreseeably
be expected to compromise the confidential, privileged or proprietary nature of
the other party’s Confidential Information.

 

8.4           Each of Seller and Buyer will comply with reasonable requests made by the
other from time to time regarding the protection of the confidential,
privileged and proprietary nature of the other party’s Confidential
Information.  Upon the written request of
either party, the other party will promptly return to the requesting party all
of the requesting party’s Confidential Information, including any and all
copies and summaries thereof, in each case in any format (whether written,
electronic or otherwise).

 

8.5           For purposes of this Section 8, the term the “Seller” will
include all Affiliates of Seller, and the term “Buyer” will include all
Affiliates of Buyer.  Nothing in this Section 8
will operate to prevent a party from disclosing such information as is required
by applicable Law or the rules or policies of any securities exchange on
which a party’s securities may be listed.

 

9.             Waiver.  The failure of any party to enforce at any
time any of the provisions of this Agreement will in no way be construed to
constitute a waiver of any such provision nor in any way to affect the validity
of this Agreement or any part hereof, including the right of any party
thereafter to enforce each and every provision. 
The waiver by any party of any breach or violation of any provision of
this Agreement by the other parties will not operate or be construed to be a
waiver of any subsequent breach or violation thereof.

 

10.          Governing
Law; Language.  This Agreement and the rights and obligations
of the parties hereunder shall be construed in accordance with and governed by
the laws of the State of New York, including Section 5-1401 of the New
York General Obligation Law, applicable to agreements made and to be performed
entirely within the State of New York, without giving effect to the conflict of
law principles thereof that would cause the application of the laws of any
jurisdiction other than the State of New York. 
This Agreement has been negotiated and executed 

 

15

 

by the parties in English.  In the event any translation of this
Agreement is prepared for convenience or any other purpose, the provisions of
the English version shall govern.  For
the avoidance of doubt, to the extent it would otherwise be applicable, the
United Nations Convention on the International Sales of Goods shall not apply
to this Agreement, and all questions of interpretation regarding the sale of
any goods purchased under this Agreement shall be determined in accordance with
the Uniform Commercial Code as adopted and in effect in the State of New York.

 

11.          Notices.  All notices, requests, consents and other
communications hereunder shall be in writing, shall be addressed to the
receiving party’s address set forth below or to such other address as a party
may designate by notice under this Section 11, and shall be either
(a) delivered by hand, (b) made by telecopy or facsimile transmission
or (c) sent by Federal Express, DHL, UPS or another internationally
recognized delivery service.

 

	
  If
  to Buyer:

  	
  ArcelorMittal
  Purchasing SAS

  
	
   

  	
  5 rue Luigi Cherubini

  
	
   

  	
  La Plaine Saint-Denis

  
	
   

  	
  93212
  France

  
	
   

  	
  Attention:
  General Manager Stainless Steel Raw Materials

  
	
   

  	
  Facsimile:
  33 1 7192 0996

  
	
   

  	
   

  
	
  If
  to Seller:

  	
  General
  Moly, Inc.

  
	
   

  	
  1726
  Cole Blvd.

  
	
   

  	
  Suite 115

  
	
   

  	
  Lakewood,
  CO 80401

  
	
   

  	
  U.S.A.

  
	
   

  	
  Attention:
  Chief Executive Officer

  
	
   

  	
  Facsimile:
  +1 (303) 928-8598

  
	
   

  	
   

  
	
  With
  a copy to:

  	
  Holme
  Roberts & Owen LLP

  
	
   

  	
  1700
  Lincoln Street

  
	
   

  	
  Suite 4100

  
	
   

  	
  Denver,
  CO 80203-4541

  
	
   

  	
  U.S.A.

  
	
   

  	
  Attention: W. Dean Salter, Esq.

  
	
   

  	
  Facsimile:
  +1 (303) 866-0200

  

 

All
notices, requests, consents and other communications hereunder shall be deemed
to have been given (i) if by hand, at the time of the delivery thereof to
the receiving party at the address of such party set forth above; (ii) if
by telecopy or facsimile transmission, on the day that receipt thereof has been
acknowledged by electronic confirmation or otherwise; or (iii) if sent by
internationally recognized delivery service, on the day of actual receipt.

 

12.          Rules of
Construction.  The parties hereto agree that they have been
represented by counsel during the negotiation, preparation and execution of
this Agreement and, therefore, 

 

16

 

waive the application of any law, regulation,
holding or rule of construction providing that ambiguities in an agreement
or other document will be construed against the party drafting such agreement
or document.

 

13.          Assignment;
No Benefit.  This Agreement will be binding upon, inure to
the benefit of and be enforceable by the respective successors and permitted
assigns of the parties.  This Agreement
may not be assigned or otherwise transferred by Buyer or Seller without the
prior written consent of the other; provided that Buyer may, without the
consent of Seller, assign its rights and obligations under this Agreement to an
Affiliate of Buyer.  Buyer hereby
acknowledges that any proposed assignment by Buyer to any other party, by
operation of law or otherwise, is subject to Seller’s consent, which will be in
Seller’s sole discretion and may be conditioned upon amendment to the payment
terms set forth herein. Except as expressly contemplated by Section 6.4,
nothing in this Agreement shall be construed to create any rights or
obligations except between the parties, and no Person shall be regarded as a
third-party beneficiary of this Agreement.

 

14.          Relationship
of the Parties.  It is understood that each party is
conducting business as a separate and distinct legal entity.  Under no circumstances will any party, its
agents and/or employees be considered agents, partners, representatives or
employees of the other parties.  No party
will have the right to act as the legal representative of the other parties or
to bind such other parties in any respect whatsoever or to incur any debts or
liability in the name of or on behalf of such other parties.  This Agreement creates no relationships of
joint venturers, partners, associates or principal and agent between the
parties.

 

15.          Severability.  The provisions of this Agreement will be
deemed severable and the invalidity or unenforceability of any provision will
not affect the validity or enforceability of the other provisions hereof;
provided that if any provision of this Agreement, as applied to any party or to
any circumstance, is adjusted by a governmental body, arbitrator, or mediator
not to be enforceable in accordance with its terms, the parties agree that the
governmental body, arbitrator, or mediator making such determination will have
the power to modify the provision in a manner consistent with its objectives
such that it is enforceable, and/or to delete specific words or phrases, and in
its reduced form, such provision will then be enforceable and will be enforced.

 

16.          Taxes and
Expenses.  Except as expressly provided herein, each party
will be responsible for payment of all taxes, if any, imposed upon it by
applicable Law in connection with this Agreement; provided, that with
respect to any new or increased taxes that come into effect due to changes in
Law after the date of this Agreement, Seller will only be responsible for the
portion of such taxes that are commonly borne by suppliers of Products in the
industry.  Each party will pay all of its
own administrative expenses, including the fees and expenses of its counsel and
other agents and representatives, incurred in connection with the preparation,
execution and performance of this Agreement. Notwithstanding any provision in
this Agreement, Seller will deduct and withhold any and all amounts required by
applicable Law to be withheld and paid to any taxing authority in respect of
any payments to be made to Buyer.  In no
event will Seller pay any “additional amounts” or “gross-up” payments to Buyer
in order to compensate Buyer for any reduction in the net after-tax proceeds it
receives as a result of any amounts required by applicable Law to have been
deducted and withheld by Seller.

 

17

 

17.          Currency.  All references to dollars or amounts of money
in this Agreement will be in Dollars.

 

18.          Counterparts.  This Agreement may be executed in
counterparts (including by facsimile or similar means of electronic
communication), each of which shall be deemed an original and all of which
together shall constitute one agreement. 
This Agreement may be executed by facsimile signatures.

 

19.          Entire
Agreement.  This Agreement, including schedules, exhibits
or other documents referred to herein, embodies the entire agreement and
understanding between the parties hereto with respect to the subject matter
hereof and supersedes all prior oral or written agreements and understandings
relating to the subject matter hereof. 
No statement, representation, warranty, covenant or agreement of any
kind not expressly set forth in this Agreement shall affect, or be used to
interpret, change or restrict, the express terms and provisions of this
Agreement.

 

20.          Amendment.  The terms and provisions of the Agreement may
be modified, amended or waived, or consent for the departure from such terms
and provisions may be granted, only by written consent of Seller and
Buyer.  Each such waiver or consent shall
be effective only in the specific instance and for the purpose for which it was
given, and shall not constitute a continuing waiver or consent.

 

21.          Waiver of
Jury Trial.  Each of the
parties hereto hereby waives to the fullest extent permitted by applicable Law
any right it may have to a trial by jury with respect to any litigation
directly or indirectly arising out of, under or in connection with this
Agreement or the transactions contemplated hereby.

 

22.          Dispute
Resolution.  All
disputes between the parties arising out of, relating to or in connection with
this Agreement (a “Dispute”) and not otherwise settled by agreement
between the parties shall be exclusively and finally settled in accordance with
Schedule C.

 

23.          Limitation
of Liability.  UNDER NO CIRCUMSTANCES WILL SELLER OR BUYER
BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE
OR EXEMPLARY DAMAGES HEREUNDER OR IN CONNECTION HEREWITH.

 

24.          Remedies
Cumulative.  All remedies available to the parties for
breach of this Agreement are cumulative and may be exercised concurrently or
separately, and the exercise of any one remedy shall not be deemed an election
of such remedy to the exclusion of other remedies.

 

25.          Safety,
Health and the Environment.

 

25.1         Safety
at work, in particular safety of the parties and their personnel and those of
their visitors, is a priority for the parties. 
Each party fully endorses these policies and adopts them as its own, in
so far as they relate to the performance of its obligations under this
Agreement.

 

18

 

25.2         Each
party’s staff shall comply with the relevant safety rules of applicable
Law, including those related to protective clothing and safety equipment and
any local rules applicable to the plants.

 

25.3         Each
party reserves the right to refuse access to any of its facilities to any of
the other party’s staff or those of its sub-contractors and suppliers for
failure to comply with safety, health and environmental rules.

 

25.4         Seller
shall not bring any radioactive, materials or equipment onto Seller’s premises
(but accepts no liability in relation to risk of such contamination by third
parties, the transporter, or other causes beyond its reasonable control).

 

25.5         Without
prejudice to the generality of its obligations under this clause, each party
shall use all practicable and reasonable means to:

 

25.5.1              prevent or counteract the unlawful emission of any hazardous and/or
radioactive substance from the Products loaded hereunder;

 

25.5.2              avoid the unlawful discharge from the Products as loaded hereunder into
any drains or other conducting media of any hazardous and/or radioactive
substance;

 

25.5.3              prevent the unlawful generation, accumulation or migration of any
hazardous and/or radioactive substance from the Products loaded hereunder; and

 

25.5.4              prevent any environmental claims arising, or any circumstances arising
likely to result in any environmental claims, resulting from or caused by the
condition of Products as loaded hereunder,

 

in
so far as such hazardous and/or radioactive substance is, or should be, under
the control of such party pursuant to this Agreement.

 

26.          No Fraud;
No Corruption.  Each party shall take all necessary steps, in
accordance with good industry practice, to prevent any fraudulent activity by
such party (including its employees) in connection with invoicing or payment
pursuant to this Agreement.  Each party
shall notify the other immediately if it has discovered that any such fraud has
occurred or is occurring.  No party has
offered or given, or agreed to give, to any employee, servant or representative
of the other party any personal gift, commission or other consideration of any
kind as an inducement or reward for doing, refraining from doing, or for having
done or refrained from doing, any act in relation to the obtaining or execution
or performance of this Agreement.

 

27.          Relationship
to Hanlong Supply Agreement.  The
parties agree and acknowledge that this Agreement is not, and shall not
constitute, an “Existing Obligation” as such term is defined in the Hanlong
Supply Agreement.

 

28.          Joint and Several Liability. The Company and Nevada Moly shall be jointly and severally liable for
Seller’s obligations under this Agreement.

 

19

 

29.          Entry into Other Supply Agreements.  If, (i) during the Term, Seller enters
into any other agreement or series of related agreements (a) pursuant to
which Seller agrees to supply molybdenum products from the Mount Hope Mine to a
third party prior to the Trigger Date or (b) having a term of one year or
more pursuant to which Seller agrees to supply molybdenum products from the
Mount Hope Mine after the Trigger Date, and in either case such agreement
contemplates a floor price that is more than US$0.50 per pound lower than the
Floor Price in effect in any month during the Term, or (ii) during the
Term, Seller enters into a new agreement with China Han Long Mining Development
Limited, or its Affiliates, or amends the Hanlong Supply Agreement, in either
case to provide more favorable financial terms than this Agreement, then Seller
will promptly provide Buyer notice thereof together with a copy of such
agreement(s).  Within 30 days of
delivery of such notice, Buyer may, at its option, deliver written notice to
Seller of its desire to amend this Agreement to provide for the same monthly
floor price and all other financial terms and conditions as such new
agreement(s), and the parties agree to cooperate promptly and in good faith to
prepare and execute such amendment.  If
the parties are unable to do so within 60 days after delivery of Buyer’s
notice of its desire to amend this Agreement, such matter will be resolved
pursuant to the procedures set forth in Section 22.

 

[Signature page follows]

 

20

 

The
parties have executed this Agreement as of the date first above written.

 

SELLER:

 

	
   

  	
  GENERAL
  MOLY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Bruce D. Hansen

  
	
   

  	
  Name:

  	
  Bruce
  D. Hansen

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NEVADA
  MOLY, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Bruce D. Hansen

  
	
   

  	
  Name:

  	
  Bruce
  D. Hansen

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer

  

 

[SIGNATURE PAGE OF EXTENSION
MOLYBDENUM SUPPLY AGREEMENT]

 

 

BUYER:

 

	
   

  	
  ARCELORMITTAL
  PURCHASING SAS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Davinder Chugh

  
	
   

  	
  Name:

  	
  Davinder
  Chugh

  
	
   

  	
  Title:

  	
  Member
  Group Mgt Board

  

 

[SIGNATURE PAGE OF EXTENSION
MOLYBDENUM SUPPLY AGREEMENT]

 

 

SCHEDULE A

(to Extension Molybdenum Supply Agreement)

 

Technical Molybdic Oxide, Western Grade

 

SPECIFICATION MOLYBDENUM OXIDE

 

	
  Mo

  	
  {****}

  
	
   

  	
   

  
	
  Cu

  	
  {****}

  
	
   

  	
   

  
	
  S

  	
  {****}

  
	
   

  	
   

  
	
  C

  	
  {****}

  
	
   

  	
   

  
	
  P

  	
  {****}

  
	
   

  	
   

  
	
  Si

  	
  {****}

  
	
   

  	
   

  
	
  Pb

  	
  {****}

  

 

A-1

 

SCHEDULE B

(to Extension Molybdenum Supply Agreement)

 

Existing Obligations

 

	
  1.

  	
   

  	
  Molybdenum
  Supply Agreement, dated March 4, 2010, among the Company, Nevada Moly,
  China Han Long Mining Development Limited, a Hong Kong corporation and
  Hanlong (USA) Mining Investment, Inc., a Delaware corporation.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Molybdenum
  Supply Agreement, dated May 14, 2008, between the Company and SeAH
  Besteel Corporation.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Molybdenum
  Supply Agreement, dated August 8, 2008, between the Company and Sojitz
  Corporation.

  

 

B-1

 

SCHEDULE C

(to Extension Molybdenum Supply Agreement)

 

Dispute Resolution

 

1.     All
Disputes not otherwise settled by agreement between the parties shall be
finally settled by binding arbitration under the Rules of Arbitration (the
“Rules”) of the International Chamber of Commerce (the “ICC”) by
arbitrators appointed in accordance with the Rules then in effect, except
to the extent the Rules conflict with the provisions of this Schedule C,
in which event the provisions of this Schedule C shall control.  The parties specifically agree that any time
before the Tribunal has been appointed, a party may seek a preliminary
injunction or other interim relief before a court of competent jurisdiction to
the extent necessary to preserve the status quo or to preserve a party’s
ability to obtain meaningful relief pending the outcome of the arbitration
under this Schedule C.

 

2.     In
the event of any Dispute and before arbitration may be commenced, upon notice
by any party to the other party to such Dispute (the “Dispute Negotiation
Notice”), such Dispute must immediately be referred to one representative
of the executive management of Seller designated by Seller and one
representative of the executive management of Buyer designated by Buyer, who
must be authorized to settle the Dispute. 
Such representatives must promptly meet in a good faith effort to
resolve the Dispute.  If the
representatives so designated do not resolve the Dispute within ten (10) Business
Days after the delivery of the Dispute Negotiation Notice, the Dispute will be
exclusively and finally resolved by binding arbitration as described in this Schedule
C.

 

3.     The
arbitration shall be conducted before a panel of three arbitrators, each of
whom must be fluent in English, have experience in the mining industry in the
United States, and be neutral and independent of the parties to the Dispute
(the “Tribunal”).  The claimant
shall appoint one arbitrator and the respondent must appoint one arbitrator, as
provided in the Rules.  The third
arbitrator shall be selected by the two arbitrators so appointed; provided
that if the two arbitrators so appointed fail to select the third arbitrator
within thirty (30) days after the date on which the second of such two
arbitrators is appointed, then the third arbitrator shall be appointed by the
ICC Court.  The third arbitrator,
regardless of how selected, shall chair the Tribunal.

 

4.     The
place of arbitration shall be New York, New York.  The arbitration shall be conducted in
English; provided that (i) any party thereto, at its cost, may
provide for the translation of the proceedings into a language other than
English, and (ii) any party thereto may elect to submit documents or other
information to the Tribunal in English, (iii) any witness whose native
language is not English may elect to give testimony in English or in such
witness’s native language, with simultaneous interpretation into English if
such testimony is given in such native language.  If simultaneous interpretation is so made,
the interpreter will be appointed by the Tribunal.  Each party to any arbitration or its legal
counsel may also hire an interpreter at such party’s own expense, and may
participate in the examination and cross-examination of witnesses at any
hearing.

 

5.     Unless
the Tribunal orders an earlier date or the parties to the arbitration otherwise
agree, not less than thirty (30) days before the beginning of the evidentiary
hearing, each party to the arbitration shall submit to the other parties to the
arbitration the 

 

C-1

 

documents
that it may use at the hearing and a list of the witnesses whom such party may
call at the hearing.

 

6.     The
Tribunal shall have no authority to award any indirect, incidental, special,
consequential, or punitive damages, and each party irrevocably waives its right
to recover any such damages.

 

7.     The
decision of the Tribunal will be final and binding.  Any award made in the arbitration will be
enforceable in any court of competent jurisdiction, including without
limitation in any jurisdiction where one or more of the parties is domiciled or
has assets.  For purposes of an action
for recognition or enforcement of the award, each party irrevocably waives any
objection that it might have to personal jurisdiction in the courts of a
jurisdiction where one or more of the parties is domiciled or has assets.

 

8.     Notwithstanding
the pendency of any arbitration, the obligations of the parties under this
Agreement will remain in full force and effect; provided that no party
will be considered in default under this Agreement (except for defaults for the
payment of money) during the pendency of an arbitration specifically relating
to the default.  Each party to any
arbitration must bear its own costs and expenses in connection with such
arbitration, unless the Tribunal determines otherwise.

 

The
parties shall use their commercially reasonable efforts to encourage the
Tribunal to enter a final award resolving the Dispute within 180 days from the
appointment of the Tribunal. 
Notwithstanding any provision to the contrary in this Schedule C,
the parties to any arbitration under this Schedule C may agree at any
time to discontinue and terminate such arbitration.

 

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