Document:

EX-10.2

 

Exhibit
10.2

COKE SUPPLY AGREEMENT

Dated
as of September 29, 2005

between

WHEELING-PITTSBURGH STEEL CORPORATION

and

MOUNTAIN STATE CARBON, LLC

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I PURCHASES AND SALES OF COKE	 	 	1	 
	 
	 	 	 	 	 	 
	1.1
	 	Purchases and Sales Prior to January 1, 2007	 	 	1	 
	1.2
	 	Purchases and Sales After December 31, 2006	 	 	2	 
	1.3
	 	Notice of Coke Sales to Non-Affiliates	 	 	2	 
	1.4
	 	Turn-Down	 	 	2	 
	1.5
	 	Quality of Coke	 	 	3	 
	1.6
	 	Absolute Obligation	 	 	3	 
	1.7
	 	No Use Restriction	 	 	3	 
	1.8
	 	Coke Breeze	 	 	3	 
	1.9
	 	Nut Coke	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE II TRANSFER PRICE; MARKET PRICE; PAYMENT	 	 	4	 
	 
	 	 	 	 	 	 
	2.1
	 	Transfer Price	 	 	4	 
	2.2
	 	Breaches or Termination of the Coke Supply Agreements	 	 	4	 
	2.3
	 	Market Price	 	 	5	 
	2.4
	 	Invoices	 	 	5	 
	2.5
	 	Terms of Payment	 	 	5	 
	2.6
	 	Currency	 	 	5	 
	2.7
	 	Taxes	 	 	5	 
	2.8
	 	Failure to Pay	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE III DELIVERY; TITLE	 	 	6	 
	 
	 	 	 	 	 	 
	3.1
	 	Delivery	 	 	6	 
	3.2
	 	Point of Delivery	 	 	6	 
	3.3
	 	Weights	 	 	6	 
	3.4
	 	Title and Risk of Loss	 	 	6	 
	3.5
	 	Provisions Applicable to Delivery	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES	 	 	7	 
	 
	 	 	 	 	 	 
	4.1
	 	Joint	 	 	7	 
	4.2
	 	Company’s Representation	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE V REPRESENTATIVE; LIMITATION OF LIABILITY	 	 	7	 
	 
	 	 	 	 	 	 
	5.1
	 	Nomination of Representative	 	 	7	 
	5.2
	 	LIMITATION OF LIABILITY	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE VI FORCE MAJEURE; EMERGENCY	 	 	8	 
	 
	 	 	 	 	 	 
	6.1
	 	Force Majeure	 	 	8	 
	6.2
	 	Emergency	 	 	8	 

 

 

	 	 	 	 	 	 	 
	6.3
	 	Accommodation During a Force Majeure or Emergency	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE VII AUDIT REVIEW	 	 	9	 
	 
	 	 	 	 	 	 
	7.1
	 	Audits	 	 	9	 
	7.2
	 	Frequency of Audits	 	 	9	 
	7.3
	 	Scheduling Audits	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE VIII TERMINATION; SURVIVAL	 	 	9	 
	 
	 	 	 	 	 	 
	8.1
	 	Term	 	 	9	 
	8.2
	 	Termination	 	 	9	 
	8.3
	 	Survival	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE IX DEFINITIONS	 	 	10	 
	 
	 	 	 	 	 	 
	9.1
	 	Definitions	 	 	10	 
	9.2
	 	Construction	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE X GENERAL	 	 	12	 
	 
	 	 	 	 	 	 
	10.1
	 	Governing Law	 	 	12	 
	10.2
	 	Nature of Relationship; Agency	 	 	12	 
	10.3
	 	Due Notice	 	 	12	 
	10.4
	 	Headings	 	 	13	 
	10.5
	 	Counterparts	 	 	13	 
	10.6
	 	No Third Party Rights	 	 	13	 
	10.7
	 	Assignment; Successors	 	 	13	 
	10.8
	 	Entire Agreement; Amendment	 	 	14	 
	10.9
	 	Severability	 	 	14	 
	10.10
	 	Confidentiality	 	 	14	 
	10.11
	 	Dispute Resolution	 	 	14	 
	10.12
	 	Consideration	 	 	14	 
	10.13
	 	The LLC Agreement Controls Conflicts	 	 	14	 

[Certain Schedules have been omitted and will be furnished upon request.]

 

 

COKE SUPPLY AGREEMENT

     This is a Coke Supply Agreement dated and effective as of September 29, 2005, by and between
WHEELING-PITTSBURGH STEEL CORPORATION, a Delaware corporation (“WPSC”), and MOUNTAIN STATE CARBON,
LLC, a Delaware limited liability company (the “Company”).

     SNA CARBON, LLC, a Delaware limited liability company (“SCL”), and WPSC have formed the
Company to own and refurbish WPSC’s coke batteries and manufacture and sell the coke produced by
those batteries for their respective benefit. In connection with the formation, WPSC is
contributing some cash and its Coke Facilities to the Company, while SCL is contributing cash.
Pursuant to the terms of the Company’s Amended and Restated Limited Liability Company Agreement
dated the date hereof, as it may be amended from time to time (the “LLC Agreement”), each of WPSC
and SCL has also committed to contribute additional cash to the Company for the purposes of
operating and maintaining the Coke Facilities and refurbishing the coke batteries.

     The Company desires to enter into a coke supply agreement with each of WPSC and SCL to ensure
that it has a steady stream of revenue to support its operations. As such, the Company has agreed
to sell coke to WPSC, and WPSC has agreed to purchase coke from the Company, on the terms and
subject to the conditions set forth in this Agreement, all as contemplated by the LLC Agreement.

     This is the WPSC Coke Supply Agreement to which the LLC Agreement makes reference. SCL is
simultaneously entering into two coke supply agreements. Under the first coke supply agreement,
SCL is purchasing coke from WPSC from May 1, 2005 through and including December 31, 2005 (the
“WPSC/SCL Coke Supply Agreement”). Under the second coke supply agreement, SCL is purchasing coke
from the Company commencing on January 1, 2006 with different delivery obligations.

     Certain capitalized terms used in this Agreement are defined in Article IX below. Such
defined terms are integral to this Agreement.

     WPSC and the Company hereby agree as set forth in this Agreement.

ARTICLE I

Purchases and Sales of Coke

     1.1 Purchases and Sales Prior to January 1, 2007.

          a. Purchase and Sale Obligations.
For the period between May 1, 2005 and December 31, 2006,
the Company shall sell to WPSC, and WPSC shall purchase and take delivery from the Company of, coke
at the Transfer Price in the quantities set forth in Schedule A. The Company shall use its
commercially reasonable efforts to produce such coke at the Coke Batteries. Notwithstanding the
foregoing, if the Company does not produce 612,660 tons of coke for the period between May 1, 2005
and December 31, 2005, then the quantity of coke that the Company shall sell to WPSC under this
Section 1.1 shall be reduced by an amount equal to

 

 

100% of the Company’s total coke production shortfall for such period, allocated weekly on the
basis of production levels. If the Company does not produce 955,000 tons of coke for calendar year
2006, then the quantity of coke that the Company shall sell to WPSC under this Section
1.1(a) shall be reduced by an amount equal to 50% of the Company’s total coke production shortfall
for such period, allocated weekly on the basis of production levels. Notwithstanding the
foregoing, WPSC shall not be required to purchase from the Company that amount of coke that it is
required to deliver to SCL pursuant to the terms of the WPSC/SCL Coke Supply Agreement if and to
the extent that SCL has breached or terminated the WPSC/SCL Coke Supply Agreement. The rights and
obligations of the parties hereto to purchase and sell coke under this clauses (a) may be reduced
or increased, as the case may be, in accordance with Section 3.10(i) of the LLC Agreement, which
provision shall take priority over this clause (a).

          b. Excess Coke for SCL in 2005. If, and to the extent that, SCL purchases 250,000 tons of
coke from WPSC pursuant to the WPSC/SCL Coke Supply Agreement for the period between May 1, 2005
and December 31, 2005, WPSC shall have the right, at the direction of SCL, to purchase from the
Company for SCL’s benefit any coke produced by the Company in excess of 650,000 tons at the higher
of (i) Market Price less 5% and (ii) the Transfer Price.

          c. Excess Coke for WPSC in 2005 and 2006. 
If, and to the extent that, SCL has determined that
it does not desire to purchase any coke produced by the Company in excess of 612,660 tons pursuant
to the terms of the WPSC/SCL Coke Supply Agreement for the period between May 1, 2005 and December
31, 2005 or any coke produced by the Company in excess of 955,000 tons pursuant to the SCL Coke
Supply Agreement for the calendar year 2006, as applicable, WPSC shall have the right, but not the
obligation, to purchase from the Company such excess coke at the higher of (i) Market Price less 5%
and (ii) the Transfer Price.

     1.2 Purchases and Sales After December 31, 2006.
Except as provided in Section 1.3, at all
times after December 31, 2006, and prior to the expiration of the Term, the Company shall sell to
WPSC, and WPSC shall purchase and take delivery from the Company of, that percentage of the coke
produced at the Coke Batteries that is equal to 50% of the Company’s total production of coke,
allocated on a weekly basis. The rights and obligations of the parties hereto to purchase and sell
coke under this Section may be reduced or increased, as the case may be, in accordance with Section
3.10(i) of the LLC Agreement, which provision shall take priority over this section.

     1.3 Notice of Coke Sales to Non-Affiliates.
 If, after December 31, 2006, WPSC desires to sell
to non-Affiliate third parties coke that it has purchased from the Company, WPSC shall inform SCL
of its intent to do so.

     1.4 Turn-Down. If WPSC’s steel-making operation
in Steubenville, Ohio is not producing an
adequate amount of steel to consume all of the coke to be provided by the Company under this
Agreement, WPSC shall have the right, upon providing prior written notice to the Company, to
instruct the Company to turn-down production of coke at the Coke Facilities. The Company shall
cooperate in turning down production in an orderly manner consistent with and to the extent that it
can safely comply with existing environmental regulations and contract commitments and giving
appropriate consideration to the impact on coke quality and the life of the Coke Batteries. WPSC
shall promptly reimburse SCL for any increase in its Contract Price

2

 

and Transfer Price under each of the WPSC/SCL Coke Supply Agreement or the SCL Coke Supply
Agreement, respectively, resulting from any turn-down requested by WPSC. A turn-down initiated by
WPSC shall have no effect on the Company’s obligations to deliver coke to WPSC for the benefit of
SCL under the WPSC/SCL Coke Supply Agreement or SCL under the SCL Coke Supply Agreement.
Notwithstanding the foregoing, at SCL’s election, the Company shall continue to operate above the
turn down level at the direction of SCL and sell such excess coke to SCL at the same price that
WPSC would have paid for such coke.

     1.5 Quality of Coke. The coke delivered to WPSC shall meet the quality specifications set
forth on Schedule B measured on a daily average basis (subject to the additional covenant contained
in Schedule B); provided, however, if WPSC chooses to accept any coke delivered to WPSC pursuant to
this Agreement that does not meet such specifications, then such acceptance shall be deemed to be a
waiver by WPSC of any remedies that WPSC may have hereunder with respect to the failure of such
coke to meet such specifications. Rejection shall be WPSC’s sole remedy if the coke tendered
hereunder does not meet the specifications set forth on Schedule B. The costs and expenses
associated with the rejection of coke under this Section 1.5, including loading and unloading
costs, shall be borne by the Company.

     1.6 Absolute Obligation. Except as set forth in Sections 1.4 and 1.5, prior to the expiration
of the Term, the obligation of WPSC to accept coke tendered for delivery by the Company and to pay
for such coke (whether or not WPSC shall actually take delivery of such coke) at the prices and on
the other terms set forth herein and to make the other payments specified herein is absolute and
unconditional without regard to (a) the validity, regularity or enforceability of this Agreement or
the LLC Agreement, (b) any defense, set-off or counterclaim (other than a defense of payment or
performance) that may at any time be available to or be asserted by WPSC against the Company in
connection with this Agreement or (c) any other circumstance whatsoever that constitutes, or might
be construed to constitute, an equitable or legal discharge of WPSC from its obligations under this
Agreement. Except as provided in Section 8.2 of this Agreement, WPSC hereby waives, to the extent
permitted by applicable law, any and all rights that it may now have or which at any time hereafter
may be conferred on it, by statute or otherwise, to terminate, cancel or rescind this Agreement.

     1.7 No Use Restriction. WPSC may consume, sell, transfer or otherwise dispose of the coke
purchased pursuant to this Agreement without restriction.

     1.8 Coke Breeze. Notwithstanding anything to the contrary contained in this Agreement, the
Company shall not have any obligation to sell to WPSC, and WPSC shall not have any obligation to
purchase from the Company, coke breeze.

     1.9 Nut Coke. For the period
 between May 1, 2005 and December 31, 2005, WPSC shall have the
obligation to purchase from the Company for SCL’s benefit that amount of Nut Coke that is
proportionate to total Nut Coke production as SCL’s purchases of coke are to total coke production
during the same period, at the Transfer Price. In addition, during the Term, WPSC shall have the
obligation to purchase from the Company that amount of Nut Coke that is proportionate to total Nut
Coke production as WPSC’s purchases of coke for its own consumption hereunder are to total coke
production during the same period, at the Transfer Price.

3

 

ARTICLE II

Transfer Price; Market Price; Payment

     2.1 Transfer Price.

          a. Transfer Price Inclusions. 
Except as otherwise provided in this Agreement, during such
time as WPSC holds at least a 50% Non-Voting Capital Stock Interest, the purchase price to be paid
by WPSC to the Company for the coke purchased hereunder shall be the Transfer Price. Except as
otherwise provided in this Agreement, during such time as WPSC holds less than a 50% Non-Voting
Capital Stock Interest, the purchase price for that amount of coke purchased hereunder that is
proportionate to two times WPSC’s Non-Voting Capital Stock Interest shall be at the Transfer Price
and the purchase price for the remainder of coke purchased hereunder shall be at the higher of (i)
Market Price less 5% and (ii) the Transfer Price. The Transfer Price paid by WPSC hereunder
together with the Transfer Price paid by SCL under the SCL Coke Supply Agreement for all coke
supplied under both such Coke Supply Agreements is intended to cover the Company’s total costs and
expenses of managing, operating and maintaining the Coke Facilities. As such, “Transfer Price”
means (a) all of the Company’s operating and administrative costs and expenses, including
depreciation and amortization, but excluding the capital and expense components of refurbishment
expenditures, plus (b) 5%, minus (c) all revenues received by the Company from the sale of coke,
coal tars, coke breeze, Nut Coke and chemicals to third parties and all revenues received from WPSC
for coke oven gasses and steam, allocated per ton among the Company’s production of coke on a
weekly basis. Without limiting the foregoing, the Transfer Price shall include all of the
Company’s: (i) raw materials cost (including coal and other supplies); (ii) manufacturing costs;
(iii) overhead; (iv) insurance; (v) governmental impositions; (vi) hourly and salaried labor costs;
(vii) charges to be paid by the Company under the Management Agreement and Operating Agreement;
(viii) costs and expenses incurred by the Company identified in the retained responsibility
provisions contemplated by Schedule B to each of the Management Agreement and the Operating
Agreement; and (ix) costs relating to loading any coke, immediately after it is produced, into rail
cars provided by WPSC.

          b. Transfer Price Exclusions.
Notwithstanding the foregoing, the Transfer Price shall not
include, and WPSC shall be solely responsible for, all costs and expenses (including any
deterioration to the coke) relating to barge loading, stocking, de-stocking, screening or loading
coke, except for costs described in Section 2.1(a)(ix). The Transfer Price also shall not include
any costs, fees, disbursements or other expenditures relating to environmental conditions existing
prior to the date of this Agreement. The costs, fees, disbursements or other expenditures relating
to such corrective actions shall be subject to the terms of the LLC Agreement.

     2.2 Breaches or Termination of the Coke Supply Agreements.

          a. No Increase in Transfer Price.
 WPSC’s Transfer Price shall not increase as a result of a
breach or the termination of the WPSC/SCL Coke Supply Agreement or the SCL Coke Supply Agreement
(where such breach or termination is due to default by SCL or the Managers elected by SCL). As
such, if either the WPSC/SCL Coke Supply Agreement or the SCL Coke Supply Agreement is breached or
terminated prior to the termination of this

4

 

Agreement (where such breach or termination is due to default by SCL or the Managers elected
by SCL), WPSC’s Transfer Price shall not increase, and the Transfer Price shall be calculated as if
the WPSC/SCL Coke Supply Agreement and the SCL Coke Supply Agreement were in effect and the parties
thereto were complying with the terms thereof.

          b. WPSC’s Purchase Right.
If, and to the extent that, SCL does not purchase the amount of
coke required to be purchased by it under either the WPSC/SCL Coke Supply Agreement or the SCL Coke
Supply Agreement, then WPSC shall have the right, but not the obligation, to purchase any or all of
such coke from the Company at the same price that SCL would have paid for such coke.

          c. Assignment of WPSC/SCL Coke Supply Agreement.
 If the WPSC/SCL Coke Supply Agreement
terminates for any reason, then WPSC shall have the right, but not the obligation, to assign all of
its rights and obligations under the WPSC/SCL Coke Supply Agreement to the Company. The Company
shall assume any such rights and obligations so assigned by WPSC.

     2.3 Market Price. “Market Price” means
 (a) an arm’s length offer for sale of coke of similar
quantity, quality and availability by reference to third party transactions (taking into account
any material and relevant factors), or (b) if a price under clause (a) is not available, then the
average purchase price paid by WPSC for coke of similar quantity, quality and availability for the
ninety (90) day period prior to the date of sale (excluding prices paid by WPSC to the Company).
The prices calculated in clause (b) above shall include all transportation costs to WPSC’s
receiving yard in Follansbee, West Virginia, export licenses, duties, taxes, and loading and
unloading costs. There shall be deducted from prices calculated in clause (b) above any costs that
would be incurred to transport coke from the Coke Facilities to WPSC’s receiving yard in
Follansbee, West Virginia.

     2.4 Invoices. The Company shall render an invoice to WPSC each week by the third working day
of such week in relation to the coke delivered to WPSC during the previous week.

     2.5 Terms of Payment. Terms of payment shall be net cash within fifteen (15) days from the
date of the Company’s invoice.

     2.6 Currency. All payments due hereunder shall be invoiced and paid in immediately available
U.S. dollars.

     2.7 Taxes. Any tax (including any applicable value added tax) or other governmental charge,
or increase thereof, upon the production, sale and/or shipment of the coke sold under this
Agreement (other than taxes based upon the Company’s net income), whether by national, foreign,
federal, state or municipal authorities, imposed, or becoming effective, on or after the date of
this Agreement, shall be the sole responsibility of WPSC.

     2.8 Failure to Pay. The Company shall have the right, but not the obligation, to cease
delivering coke to WPSC if WPSC fails to pay the amounts due under this Article and does not cure
such failure within fifteen (15) calendar days after receiving written notice of such failure.
Such right may be exercised by the Company only by delivery to WPSC of a writing that expressly
contains the exercise of such right by specific reference to this Section. The

5

 

remedy of the Company set forth in this Section shall be exercised solely by a Manager elected
by SCL at least three days prior to cessation of delivery. When the default is cured, then
deliveries shall resume. WPSC shall nevertheless be responsible for and shall pay to the Company
the Transfer Price for any coke that is manufactured by the Company, tendered to WPSC under this
Agreement and not accepted by WPSC for any reason other than non-conformance with Section 1.5
hereof. Subject to Section 2.2 of the SCL Coke Supply Agreement, in an effort to mitigate damages,
the Company shall use commercially reasonable efforts to sell to third parties any excess coke
resulting as a consequence of the Company’s election to ship a reduced amount of coke to WPSC.

ARTICLE III

Delivery; Title

     3.1 Delivery. Subject to the provisions of this Agreement and the LLC Agreement, the coke
sold and purchased under this Agreement shall be delivered in approximately equal weekly increments
to the extent that such is commercially practicable and does not adversely affect either the
Company or SCL. Except as otherwise provided in this Agreement or the LLC Agreement, including
changes in expected production and certain changes in the ownership of the Membership Interests of
the Company, to the extent that the Company produces 955,000 tons of coke in 2006, the Company
shall deliver to WPSC approximately 62.83% of the coke produced at the Company in 2006 in
accordance with Schedule C attached hereto. The Company shall use commercially reasonable efforts
to cooperate with WPSC in determining whether a more equal weekly distribution of coke deliveries
can be accommodated, so long as such does not adversely affect either the Company or SCL. WPSC
shall be responsible for arranging transportation of coke from the Coke Facilities to WPSC’s
facility. If WPSC does not make transportation arrangements, the Company shall make transportation
arrangements for WPSC’s account.

     3.2 Point of Delivery. The coke sold and purchased under this Agreement shall be delivered by
the Company to WPSC free on board pushed into railroad cars provided by WPSC at the Company’s Coke
Facilities. The Company may pull such railroad cars to the Ohio River rail bridge at the Company’s
facility.

     3.3 Weights. The coke sold and purchased under this Agreement shall be weighed by the
Company’s certified track scales. These weights shall govern and shall be used by the Company in
invoicing the coke delivered hereunder. Such scales shall be properly inspected and certified at
intervals of not more than six (6) months.

     3.4 Title and Risk of Loss. Title and all risk of loss, damage or destruction with respect to
the coke sold and purchased under this Agreement shall pass to and be assumed by WPSC when delivery
of such coke has occurred in accordance with Section 3.2 of this Agreement.

     3.5 Provisions Applicable to Delivery. The Company shall cooperate with and provide
assistance to WPSC when necessary or appropriate and the Parties shall communicate with each other
regularly as necessary to schedule and expedite shipment. The Company shall

6

 

load all rail cars in accordance with all Legal Requirements and any reasonable requirements
of the carrier designated by WPSC.

ARTICLE IV

Representations and Warranties

     4.1 Joint. Each Party represents and warrants to the other Party that:

          a. Authority. It is duly organized,
 validly existing and in good standing under the laws of
its jurisdiction of incorporation or organization. It has the power and authority to enter into
this Agreement and to perform its obligations hereunder.

          b. Authorization; Enforceability. This
 Agreement has been duly executed and delivered by it
and constitutes its legal, valid and binding obligations, enforceable against it in accordance with
their respective terms. It has duly and validly authorized this Agreement.

          c. No Violations. 
The execution and delivery by it of this Agreement shall not, directly or
indirectly (with or without notice or the lapse of time or both): (i) contravene, conflict with,
or result in a violation of any provision of its governing documents or the resolutions adopted by
its board or directors or board of managers; (ii) contravene, conflict with, result in a breach of,
constitute a default or an event of default under, give any person the right to consent, approve,
terminate or revoke (including the right to consent, approve, terminate or revoke upon a change of
control or deemed assignment), or give to any person the right to cause any of the foregoing with
respect to, any material agreement or instrument to which it is a party or by which any of its
assets may be bound; or (iii) violate in any material respect, or give any person the right to
obtain any material relief or exercise any material remedy under, any Legal Requirement to which it
is subject, or by which its assets may be bound or affected, or give any person the right to
challenge any of the transactions contemplated by this Agreement. No person is required to make,
give or obtain any approvals or consents in connection with the execution, delivery or performance
by it of this Agreement, except for those obtained.

     4.2 Company’s Representation. The Company
 represents and warrants to WPSC that the coke
delivered under this agreement will be of the quality identified in Section 1.5.

EXCEPT FOR THE COMPANY’S OBLIGATIONS UNDER THIS SECTION 4.2, THESE ARE THE ONLY REPRESENTATIONS OR
WARRANTIES THAT THE COMPANY MAKES AND ALL OTHER EXPRESS OR IMPLIED WARRANTIES, UNDER STATUTE OR
ARISING OTHERWISE IN LAW FROM A COURSE OF DEALING OR USAGE OF TRADE, INCLUDING WITHOUT LIMITATION,
ANY OTHER WARRANTY OF MERCHANTABILITY, WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE OR USE OR
WARRANTY AGAINST INFRINGEMENT, ARE DISCLAIMED BY THE COMPANY.

ARTICLE V

Representative; Limitation of Liability

     5.1 Nomination of Representative. Each Party shall nominate a representative to act as the
individual representing such Party in respect of the matters covered by this Agreement

7

 

(each a “Representative”). A Party may at any time and from time to time substitute its
Representative by written notice to the other Party.

     5.2 LIMITATION OF LIABILITY. IN NO EVENT SHALL EITHER PARTY OR THEIR RESPECTIVE EMPLOYEES,
AGENTS, OFFICERS, DIRECTORS OR AFFILIATES BE LIABLE TO THE OTHER PARTY FOR ANY CONSEQUENTIAL
DAMAGES OF ANY TYPE IN CONNECTION WITH THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES, EXCEPT FOR THOSE CONSEQUENTIAL DAMAGES OF PERSONS WHO ARE NOT
AFFILIATES OF WPSC, THE COMPANY OR SCL, ARISING OUT OF CLAIMS AGAINST THE COMPANY OR WPSC BY SUCH
PERSONS. “CONSEQUENTIAL DAMAGES” MEANS INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, CONSEQUENTIAL
(INCLUDING WITHOUT LIMITATION LOSS OF FUTURE PROFITS, REVENUE OR INCOME, BUSINESS INTERRUPTION, AND
LOSS OF BUSINESS REPUTATION OR OPPORTUNITY), AND PUNITIVE DAMAGES.

ARTICLE VI

Force Majeure; Emergency

     6.1 Force Majeure. The failure or delay of the Company to perform any obligation under this
Agreement solely by reason of acts of God, nature or the public enemy, terrorism, nuclear disaster,
accidents, explosions, fire, flood, river freeze-ups, failure or availability of river locks,
drought, perils of the sea, strikes, lockouts, labor disputes, riots, sabotage, embargo, war
(whether or not declared and whether or not the United States is a participant), civil
insurrection, acts of violence, acts of government, federal, state or municipal legal restriction
or limitation or compliance therewith, failure or delay of transportation (including railway car
and barge shortages), new or amended Legal Requirements, contract disputes, failure of plants or
facilities, failure of equipment (including emergency outages of equipment or facilities or to make
repairs to avoid breakdowns thereof or damage thereto), failures of suppliers, shortage of raw
materials (including coal of the type required to produce coke), supplies, equipment, fuel, power,
or other operational necessities, interruption or curtailment of power supply, or any other
circumstance of a similar or different nature beyond the reasonable control of the Party affected
thereby (“Force Majeure”) shall not be deemed to be a breach of this Agreement.

     6.2 Emergency. The failure or delay of the Company to perform any obligation under this
Agreement solely by reason of an Emergency shall not be deemed to be a breach of this Agreement.

     6.3 Accommodation During a Force Majeure or Emergency. During the occurrence of a Force
Majeure or an Emergency, WPSC may engage a third party to provide coke that the Company is unable
to provide. Notwithstanding anything herein to the contrary, in the case of a Force Majeure or an
Emergency, the Parties shall take immediate and diligent actions to prevent or minimize such
threatened damage, injury or loss or to counteract or otherwise mitigate the effects of such Force
Majeure or Emergency. In the event of a Force Majeure or an Emergency, each Party shall notify the
other of the Force Majeure or Emergency as soon as practicable following the occurrence thereof,
which notice shall include details with respect to any action being taken in response thereto.

8

 

ARTICLE VII

Audit Review

     7.1 Audits. WPSC or its designee shall have the right to carry out audit tasks of a financial
nature to verify any and all amounts paid or payable by WPSC to the Company. The Company shall
make available, at the Coke Facilities, to WPSC or its designee, and WPSC or its designee shall
have the right to review, all contracts, books, records, and other documents relating to all costs
paid or incurred by the Company that comprise the Transfer Price. WPSC or its designee shall also
have the right to conduct a physical inventory audit. The cost of any audit shall be borne by
WPSC.

     7.2 Frequency of Audits. Audits, as identified in Section 7.1, shall not be requested by WPSC
more frequently than once every year and no claim may be brought as to any invoice more than
eighteen (18) months after the date that the invoice is rendered pursuant to Article II.

     7.3 Scheduling Audits. The scheduling and length of any audit review shall be kept to a
minimum so as to ensure as little disturbance as possible. The audit review shall commence not
later than four (4) weeks after the Company’s receipt of the audit notification from WPSC.

ARTICLE VIII

Termination; Survival

     8.1 Term. The term of this Agreement (the “Term”) shall commence on May 1, 2005 and continue
for the useful lives of the Coke Batteries, unless earlier terminated under the unique
circumstances identified in Section 8.2.

     8.2 Termination. This Agreement may only be terminated as follows:

          a. the dissolution of the Company, as provided in the LLC Agreement; or

          b. by election of a
Party if the other Party is in breach of this Agreement and does not cure
such breach within sixty (60) days (but within fifteen (15) calendar days for a breach involving
the payment for coke) of receiving written notice of such breach.

Any termination of this Agreement shall not relieve either the Company or WPSC from any liability
for breach under this Agreement that may exist prior to or as a result of the termination of this
Agreement. Unless any non-breaching party would otherwise be materially prejudiced, the
termination rights provided in clause (b) shall be suspended if any Party in good faith challenges
the allegation of breach giving rise to the notice of termination due to such breach and delivers a
notice of dispute thereof under Section 10.11 within thirty (30) days after receiving notice of
termination. Such suspension shall remain in effect only so long as the parties are actively
pursuing their remedies in respect of such alleged breach under Section 10.11. Such suspension
shall terminate if the parties are no longer pursuing their remedies in respect of such alleged
breach under Section 10.11, or if such alleged breach is determined not to be a breach under
Section 10.11.

     8.3 Survival. The following Articles and Sections of this Agreement shall survive any
termination of this Agreement: Article V (Representative; Limitation of Liability), Article

9

 

VII (Audit Review), Article VIII (Termination; Survival), Section 10.1 (Governing Law),
Section 10.3 (Due Notice), Section 10.10 (Confidentiality) and Section 10.11 (Dispute Resolution).
Notwithstanding the termination of this Agreement, the other provisions of this Agreement shall be
deemed to survive, and the Parties shall continue to perform their obligations under this
Agreement, for so long as reasonably necessary for the Parties to fulfill any outstanding
obligations created prior to the termination in reasonable reliance on this Agreement and to
otherwise facilitate a smooth end to the relationship created hereunder.

ARTICLE IX

Definitions

     9.1 Definitions. In addition to other terms defined elsewhere in this Agreement, the
following words have the following meanings in this Agreement:

     “Affiliate” means, when used with reference to a specified person, any person who directly or
indirectly, through one or more intermediaries, owns or is owned by or is under common ownership
with the specified person, where such ownership means holding more than fifty percent (50%) of any
class of equity securities of the specified person.

     “Agreement” means this Coke Supply Agreement, as it may be amended from time to time.

     “Bundled Interests” has the meaning set forth in the LLC Agreement.

     “Coke Batteries” has the meaning set forth in the LLC Agreement.

     “Coke Facilities” has the meaning set forth in the LLC Agreement.

     “Company” has the meaning set forth in the Recitals.

     “Consequential Damages” has the meaning set forth in Section 5.2.

     “Due Notice” has the meaning set forth in Section 10.3.

     “Emergency” means (a) any situation that is likely to impose an immediate threat of injury to
any individual or material damage or material economic loss to all or any part of the Coke
Facilities, or (b) any unexpected material interruption in the production of coke.

     “Force Majeure” has the meaning set forth in Section 6.1.

     “Legal Requirement” means any applicable international, multinational, national, foreign,
federal, state, municipal, local (or other political subdivision) or administrative law,
constitution, statute, code, ordinance, rule, regulation, requirement, standard, policy or guidance
having the force of law, treaty, judgment or order of any kind or nature whatsoever including any
judgment or principle of common law.

     “LLC Agreement” has the meaning set forth in the Recitals.

10

 

     “Management Agreement” means that certain Management Agreement between the Company and WPSC of
even date herewith.

     “Manager” has the meaning set forth in the LLC Agreement.

     “Market Price” has the meaning set forth in Section 2.3.

     “Membership Interests” has the meaning set forth in the LLC Agreement.

     “Non-Voting Capital Stock Interests” has the meaning set forth in the LLC Agreement.

     “Nut Coke” means coke otherwise meeting the quality specifications in Schedule A and of a size
equal to or greater than 3/8 inch and less than 3/4 inch.

     “Operating Agreement” means that certain Operating Agreement between the Company and WPSC of
even date herewith.

     “Party” means WPSC or the Company, individually, and “Parties” means WPSC and the Company,
collectively.

     “person” means and includes a natural person, a corporation, an association, a partnership, a
limited liability company, a trust, a joint venture, an unincorporated organization, a business, a
governmental body or any other legal entity.

     “Representative” has the meaning set forth in Section 5.1.

     “SCL” has the meaning set forth in the Recitals.

     “SCL Coke Supply Agreement” means that certain Coke Supply Agreement between SCL and the
Company of even date herewith.

     “Term” has the meaning set forth in Section 8.1.

     “ton” means two thousand (2,000) pounds.

     “Transfer Price” has the meaning set forth in Section 2.1(a).

     “WPSC” has the meaning set forth in the Recitals.

     “WPSC/SCL Coke Supply Agreement” has the meaning set forth in the Recitals.

     9.2 Construction. As used in this Agreement, unless a clear contrary intention applies: (a)
references to “Article” or “Section” are to an article or section of this Agreement, and references
to “hereunder,” “hereof,” “hereto,” and words of similar import are references to this Agreement as
a whole and not to any particular Article, Section or other provision hereof; (b) references to the
singular number include the plural number, and vice versa, and reference to any gender includes
each other gender; (c) all “Exhibits” and “Schedules” referred to in this Agreement are to Exhibits
and Schedules attached to this Agreement and are incorporated into this Agreement by reference and
made a part of this Agreement; (d) “include”, “includes” and

11

 

“including” are deemed to be followed by “without limitation” whether or not they are in fact
followed by such words or words of like import; (e) with respect to the determination of any period
of time, “from” means “from and including” and “to” means “to but excluding”; (f) the headings of
the various articles, sections and other subdivisions of this Agreement are for convenience of
reference only and shall not modify, define or limit any of the terms or provisions of this
Agreement; and (g) reference to any agreement, document or instrument means such agreement,
document or instrument as amended or modified and in effect from time to time in accordance with
the terms thereof and shall include all addenda, exhibits and schedules thereto.

ARTICLE X

General

     10.1 Governing Law. This Agreement will be governed by the laws of the State of Delaware,
U.S.A., without regard to conflicts of laws principles.

     10.2 Nature of Relationship; Agency. Each Party is and for all purposes shall be deemed to be
an independent contractor with respect to the performance of its obligations and duties under this
Agreement. Nothing in this Agreement shall constitute or create a joint venture, partnership,
agency or any other similar arrangement between the Parties whatsoever. Neither Party shall have
the authority to assume or create obligations on behalf of the other Party, and neither Party shall
take any action that has the effect of creating the appearance of its having such authority. This
Agreement shall not be deemed to constitute either Party to be the agent of the other Party.

     10.3 Due Notice. Any notice for any purpose required to be given to a Party under this
Agreement shall be given by Due Notice. “Due Notice” means delivery of written notice by overnight
delivery to the Corporate Secretary of WPSC and to the President of the Company. Changes to
specified officers shall be by Due Notice. Notice will be effective after actual delivery of such
notice by overnight delivery. Notice shall be accompanied by facsimile, email and telephone (which
shall not themselves constitute notice). Due Notice shall be sent to the following addresses:

If to the Company, addressed to:

c/o Wheeling-Pittsburgh Steel Corporation

1134 Market Street

Wheeling, West Virginia 26003

Attention: Corporate Secretary

Facsimile No.: (304) 234-2555

12

 

With a required copy (which shall not constitute Due Notice):

Clark Hill PLC

500 Woodward Avenue

Suite 3500

Detroit, Michigan 48226-3435

Attention: Blair B. Hysni, Esq.

Facsimile No.: (313) 965-8252

If to WPSC, addressed to:

Wheeling-Pittsburgh Steel Corporation

1134 Market Street

Wheeling, West Virginia 26003

Attention: Corporate Secretary

Facsimile No.: (304) 234-2555

With a required copy to (which shall not constitute Due Notice):

Kirkpatrick & Lockhart Nicholson Graham LLP

535 Smithfield Street

Pittsburgh, Pennsylvania 15222-2312

Attention: David L. Forney, Esq.

Facsimile No.: (412) 355-6501

Due Notice shall also be sent to any additional representative requested by a Party in writing from
time to time, but failure to give notice to such additional representatives shall not be a failure
of Due Notice.

     10.4 Headings. The various headings used in this Agreement are for convenience only and are
not to be used in interpreting the text of the Articles and Sections in which they appear or to
which they relate.

     10.5 Counterparts. This Agreement may be executed in one or more counterparts, each of which
will be deemed to be an original copy of this Agreement and all of which, when taken together, will
be deemed to constitute one and the same agreement.

     10.6 No Third Party Rights. SCL is an intended third party beneficiary to Sections 1.1, 1.2,
1.3, 1.4 and 8.3 of this Agreement and the Parties desire to grant SCL a legal or equitable right,
remedy or claim under or with respect to those provisions of this Agreement. Except as provided
above, nothing expressed or referred to in this Agreement will be construed to give any person
other than the Parties any legal or equitable right, remedy or claim under or with respect to this
Agreement or any provision of this Agreement. This Agreement and all of its provisions and
conditions are for the sole and exclusive benefit of the Parties and their successors and assigns.

     10.7 Assignment; Successors. WPSC acknowledges that its rights, duties and obligations under
this Agreement are part of the Bundled Interests and are subject to the transfer

13

 

restrictions contained in the LLC Agreement. WPSC further acknowledges that, as part of the
Bundled Interests, it may assign its rights, duties and obligations under this Agreement only if
such assignment is not prohibited by the terms of the LLC Agreement. The Company may not assign or
delegate (by operation of law or otherwise) this Agreement or any of its rights, duties or
obligations under this Agreement without the prior written consent of WPSC, which consent shall not
be unreasonably withheld; provided, however, it shall not be unreasonable for WPSC to withhold its
consent to the extent that any transfer would require WPSC to seek redress under this Agreement in
a country other than the United States. This Agreement shall be binding upon, and shall inure to
the benefit of, the Parties hereto and their respective successors and permitted assigns.

     10.8 Entire Agreement; Amendment. Subject to Section 10.13 below, this Agreement (including
the Schedules hereto, which are made a part of this Agreement by this reference) constitutes the
entire agreement of the Parties with respect to the subject matter hereof, and this Agreement
supersedes all prior and contemporaneous agreements, whether oral or written. This Agreement may
be amended only by a writing signed by an authorized representative of each of WPSC and SCL (in the
case of the Company). A course of conduct between the Parties shall not constitute an amendment or
waiver of any provision of this Agreement.

     10.9 Severability. If any provision of this Agreement not essential to accomplishing its
purposes is held invalid or unenforceable by any court of competent jurisdiction, the other
provisions of this Agreement will remain in full force and effect. Any provision of this Agreement
held invalid or unenforceable only in part or degree will remain in full force and effect to the
extent not held invalid or unenforceable.

     10.10 Confidentiality. The Parties shall be bound by the confidentiality provisions set forth
in the LLC Agreement as if such provisions were fully set forth herein.

     10.11 Dispute Resolution. The Parties shall resolve all disputes under this Agreement through
mediation and arbitration pursuant to procedures substantially identical to those set forth in
Article XIII of the LLC Agreement.

     10.12 Consideration. The Parties acknowledge the mutual receipt and sufficiency of valuable
consideration for the formation of the legally binding contract represented by this Agreement.
That consideration includes all of the representations, warranties, covenants and obligations
contained in this Agreement. The recitals to this Agreement are hereby incorporated into this
Agreement by this reference and made a part hereof.

     10.13 The LLC Agreement Controls Conflicts. Except as otherwise expressly provided herein,
any conflict between any provision in the LLC Agreement and this Agreement shall be presumed to be
resolved in favor of the LLC Agreement, subject to resolution of such conflict on its merits based
on the reasonably likely intentions of the Parties. This Agreement is an independent agreement
between the Parties and is separate and distinct from the LLC Agreement.

14

 

     IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties have caused this
Agreement to be executed by their duly authorized representatives on the date set forth below.

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	WHEELING-PITTSBURGH	 	 	 	MOUNTAIN STATE CARBON, LLC
	STEEL CORPORATION	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ James E. Muldoon
	 	 	 	By:
	 	/s/ James E. Muldoon	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:  

	 	James E. Muldoon
	 	 	 	Name:  
	 	James E. Muldoon	 	 
	Title:

	 	Vice President, Business Development
	 	 	 	Title:
	 	President and Secretary	 	 
	Date:

	 	9/29/05
	 	 	 	Date:
	 	9/29/05	 	 

15

 

SCHEDULE A

Amount of Coke to be Sold

	 	 	 
	Time Period	 	Amount
	May 1,
2005 — December 31, 2005
	 	All coke tons produced
	January 1,
2006 — December 31, 2006
	 	600,000 tons

 

 

COKE SUPPLY AGREEMENT

Dated
as of September 29, 2005

between

SNA CARBON, LLC

and

MOUNTAIN STATE CARBON, LLC

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Article I PURCHASES AND SALES OF COKE	 	 	1	 
	 
	 	 	 	 	 	 
	1.1
	 	Purchases and Sales in Calendar Year 2006	 	 	1	 
	1.2
	 	Purchases and Sales After December 31, 2006	 	 	2	 
	1.3
	 	Notice of Coke Sales to Non-Affiliates	 	 	2	 
	1.4
	 	Turn-Down	 	 	2	 
	1.5
	 	Quality of Coke	 	 	3	 
	1.6
	 	Absolute Obligation	 	 	3	 
	1.7
	 	No Use Restriction	 	 	3	 
	1.8
	 	Coke Breeze	 	 	3	 
	1.9
	 	Nut Coke	 	 	3	 
	 
	 	 	 	 	 	 
	Article II 
TRANSFER PRICE; MARKET PRICE; PAYMENT	 	 	3	 
	 
	 	 	 	 	 	 
	2.1
	 	Transfer Price	 	 	3	 
	2.2
	 	Breach or Termination of the WPSC Coke Supply Agreement	 	 	4	 
	2.3
	 	Market Price	 	 	4	 
	2.4
	 	Invoices	 	 	5	 
	2.5
	 	Terms of Payment	 	 	5	 
	2.6
	 	Currency	 	 	5	 
	2.7
	 	Taxes	 	 	5	 
	2.8
	 	Failure to Pay	 	 	5	 
	 
	 	 	 	 	 	 
	Article III DELIVERY; TITLE	 	 	5	 
	 
	 	 	 	 	 	 
	3.1
	 	Delivery	 	 	5	 
	3.2
	 	Point of Delivery; Acceptance	 	 	6	 
	3.3
	 	Weights	 	 	6	 
	3.4
	 	Title and Risk of Loss	 	 	6	 
	3.5
	 	Provisions Applicable to Delivery	 	 	6	 
	 
	 	 	 	 	 	 
	Article IV REPRESENTATIONS AND WARRANTIES	 	 	6	 
	 
	 	 	 	 	 	 
	4.1
	 	Joint	 	 	6	 
	4.2
	 	Company’s Representation	 	 	7	 
	 
	 	 	 	 	 	 
	Article V REPRESENTATIVE; LIMITATION OF LIABILITY	 	 	7	 
	 
	 	 	 	 	 	 
	5.1
	 	Nomination of Representative	 	 	7	 
	5.2
	 	LIMITATION OF LIABILITY	 	 	7	 
	 
	 	 	 	 	 	 
	Article VI FORCE MAJEURE; EMERGENCY	 	 	7	 
	 
	 	 	 	 	 	 
	6.1
	 	Force Majeure	 	 	7	 
	6.2
	 	Emergency	 	 	8	 

-i-

 

	 	 	 	 	 	 	 
	6.3
	 	Accommodation During a Force Majeure or Emergency	 	 	8	 
	 
	 	 	 	 	 	 
	Article VII AUDIT REVIEW	 	 	8	 
	 
	 	 	 	 	 	 
	7.1
	 	Audits	 	 	8	 
	7.2
	 	Frequency of Audits	 	 	8	 
	7.3
	 	Scheduling Audits	 	 	8	 
	 
	 	 	 	 	 	 
	Article VIII TERMINATION; SURVIVAL	 	 	9	 
	 
	 	 	 	 	 	 
	8.1
	 	Term	 	 	9	 
	8.2
	 	Termination	 	 	9	 
	8.3
	 	Survival	 	 	9	 
	 
	 	 	 	 	 	 
	Article IX DEFINITIONS	 	 	9	 
	 
	 	 	 	 	 	 
	9.1
	 	Definitions	 	 	9	 
	9.2
	 	Construction	 	 	11	 
	 
	 	 	 	 	 	 
	Article X GENERAL	 	 	11	 
	 
	 	 	 	 	 	 
	10.1
	 	Governing Law	 	 	11	 
	10.2
	 	Nature of Relationship; Agency	 	 	12	 
	10.3
	 	Due Notice	 	 	12	 
	10.4
	 	Headings	 	 	13	 
	10.5
	 	Counterparts	 	 	13	 
	10.6
	 	No Third Party Rights	 	 	13	 
	10.7
	 	Assignment; Successors	 	 	13	 
	10.8
	 	Entire Agreement; Amendment	 	 	13	 
	10.9
	 	Severability	 	 	13	 
	10.10
	 	Confidentiality	 	 	14	 
	10.11
	 	Dispute Resolution	 	 	14	 
	10.12
	 	Consideration	 	 	14	 
	10.13
	 	The LLC Agreement Controls Conflicts	 	 	14	 

[Schedules have been omitted and will be furnished upon request.]

 

 

COKE SUPPLY AGREEMENT

     This is a Coke Supply Agreement dated and effective as of September 29, 2005, by and between
SNA CARBON, LLC, a Delaware limited liability company (“SCL”), and MOUNTAIN STATE CARBON, LLC, a
Delaware limited liability company (the “Company”).

     SCL and WHEELING-PITTSBURGH STEEL CORPORATION, a Delaware corporation (“WPSC”), have formed
the Company to own and refurbish WPSC’s coke batteries and manufacture and sell the coke produced
by those batteries for their respective benefit. In connection with the formation, WPSC is
contributing some cash and its Coke Facilities to the Company, while SCL is contributing cash.
Pursuant to the terms of the Company’s Amended and Restated Limited Liability Company Agreement
dated the date hereof, as it may be amended from time to time (the “LLC Agreement”), each of WPSC
and SCL has also committed to contribute additional cash to the Company for the purposes of
operating and maintaining the Coke Facilities and refurbishing the coke batteries.

     The Company desires to enter into a coke supply agreement with each of WPSC and SCL to ensure
that it has a steady stream of revenue to support its operations. As such, the Company has agreed
to sell coke to SCL, and SCL has agreed to purchase coke from the Company, on the terms and subject
to the conditions set forth in this Agreement, all as contemplated by the LLC Agreement.

     This is the SCL Coke Supply Agreement to which the LLC Agreement makes reference. WPSC is
simultaneously entering into a similar coke supply agreement (with different delivery obligations)
with the Company, a copy of which is available to SCL as an attachment to the LLC Agreement.

     Certain capitalized terms used in this Agreement are defined in Article IX below. Such
defined terms are integral to this Agreement.

     SCL and the Company hereby agree as set forth in this Agreement.

Purchases and Sales of Coke

     Purchases and Sales in Calendar Year 2006.

     Purchase and Sale Obligations. For the period between January 1, 2006 to December 31, 2006,
the Company shall sell to SCL, and SCL shall purchase and take delivery from the Company of 355,000
tons of coke at the Transfer Price. The Company shall use its commercially reasonable efforts to
produce such coke at the Coke Batteries. Notwithstanding the foregoing, if the Company does not
produce 955,000 tons of coke, then the quantity of coke that the Company shall sell to SCL under
this Section 1.1(a) shall be reduced by an amount equal to 50% of the Company’s total coke
production shortfall for such period, allocated weekly on the basis of production levels. The
rights and obligations of the parties hereto to purchase and sell

 

 

coke under this clause (a) may be reduced or increased, as the case may be, in accordance with
Section 3.10(i) of the LLC Agreement, which provision shall take priority over this clause (a).

     Excess Coke Production. If and to the extent that SCL purchases 355,000 tons of coke for the
calendar year 2006, SCL shall have the right, but not the obligation, to purchase any coke produced
by the Company in excess of 955,000 tons in such year at the higher of (i) Market Price less 5% and
(ii) the Transfer Price. If SCL does not exercise such right with respect to all or any portion of
such excess coke, SCL acknowledges that WPSC may exercise such option pursuant to the terms of the
WPSC Coke Supply Agreement.

     Guaranty of Coke Supply from WPSC. SCL has a separate coke supply agreement with WPSC,
pursuant to which WPSC will provide coke to SCL from May 1, 2005 to December 31, 2005. If WPSC
fails to deliver coke to SCL under such agreement due to the fault of WPSC under the terms of such
agreement, the Company will deliver such coke to SCL from the coke that the Company would have
otherwise delivered to WPSC under the WPSC Coke Supply Agreement. If ample quantities are
available for shipment on a timely basis, this clause (c) shall be SCL’s sole remedy for such
failure to deliver. SCL will pay the Company for such coke at the Transfer Price.

     Purchases and Sales After December 31, 2006. Except as provided in Section 1.3, at all times
after December 31, 2006, and prior to the expiration of the Term, the Company shall sell to SCL,
and SCL shall purchase and take delivery from the Company of, that percentage of the coke produced
at the Coke Batteries that is equal to 50% of the Company’s total production of coke, allocated on
a weekly basis. The rights and obligations of the parties hereto to purchase and sell coke under
this Section may be reduced or increased, as the case may be, in accordance with Section 3.10(i) of
the LLC Agreement, which provision shall take priority over this section.

     Notice of Coke Sales to Non-Affiliates. If, after December 31, 2006, SCL desires to sell to
non-Affiliate third parties coke that it has purchased from the Company, SCL shall inform WPSC of
its intent to do so.

     Turn-Down. If SCL’s steel-making Affiliate in Dearborn, Michigan is not producing an adequate
amount of steel to consume all of the coke to be provided by the Company under this Agreement, SCL
shall have the right, upon providing prior written notice to the Company, to instruct the Company
to turn-down production of coke at the Coke Facilities. The Company shall cooperate in turning
down production in an orderly manner consistent with and to the extent that it can safely comply
with existing environmental regulations and contract commitments and giving appropriate
consideration to the impact on coke quality and the life of the Coke Batteries. SCL shall promptly
reimburse WPSC for any increase in its Transfer Price under the WPSC Coke Supply Agreement
resulting from any turn-down requested by SCL. A turn-down initiated by SCL shall have no effect
on the Company’s obligations to deliver coke to WPSC under the WPSC Coke Supply Agreement.
Notwithstanding the foregoing, at WPSC’s election, the Company shall continue to operate above the
turn down level at the direction of WPSC and sell such excess coke to WPSC at the same price that
SCL would have paid for such coke.

 

 

     Quality of Coke. The coke delivered to SCL shall meet the quality specifications set forth on
Schedule A measured on a daily average basis (subject to the additional covenant contained in
Schedule A); provided, however, if SCL chooses to accept any coke delivered to SCL pursuant to this
Agreement that does not meet such specifications, then such acceptance shall be deemed to be a
waiver by SCL of any remedies that SCL may have hereunder with respect to the failure of such coke
to meet such specifications. Rejection shall be SCL’s sole remedy if the coke tendered hereunder
does not meet the specifications set forth on Schedule A. The costs and expenses associated with
the rejection of coke under this Section 1.5, including loading and unloading costs, shall be borne
by the Company.

     Absolute Obligation. Except as set forth in Sections 1.4 and 1.5, prior to the expiration of
the Term, the obligation of SCL to accept coke tendered for delivery by the Company and to pay for
such coke (whether or not SCL shall actually take delivery of such coke) at the prices and on the
other terms set forth herein and to make the other payments specified herein is absolute and
unconditional without regard to (a) the validity, regularity or enforceability of this Agreement or
the LLC Agreement, (b) any defense, set-off or counterclaim (other than a defense of payment or
performance) that may at any time be available to or be asserted by SCL against the Company in
connection with this Agreement or (c) any other circumstance whatsoever that constitutes, or might
be construed to constitute, an equitable or legal discharge of SCL from its obligations under this
Agreement. Except as provided in Section 8.2 of this Agreement, SCL hereby waives, to the extent
permitted by applicable law, any and all rights that it may now have or which at any time hereafter
may be conferred on it, by statute or otherwise, to terminate, cancel or rescind this Agreement.

     No Use Restriction. SCL may consume, sell, transfer or otherwise dispose of the coke
purchased pursuant to this Agreement without restriction.

     Coke Breeze. Notwithstanding anything to the contrary contained in this Agreement, the
Company shall not have any obligation to sell to SCL, and SCL shall not have any obligation to
purchase from the Company, coke breeze.

     Nut Coke. During the Term, SCL shall have the obligation to purchase from the Company that
amount of Nut Coke that is proportionate to total Nut Coke production as SCL’s purchases of coke
hereunder are to total coke production during the same period, at the Transfer Price.

Transfer Price; Market Price; Payment

     Transfer Price.

     Transfer Price Inclusions. Except as otherwise provided in this Agreement, during such time
as SCL holds at least a 50% Non-Voting Capital Stock Interest, the purchase price to be paid by SCL
to the Company for the coke purchased hereunder shall be the Transfer Price. Except as otherwise
provided in this Agreement, during such time as SCL holds less than a 50% Non-Voting Capital Stock
Interest, the purchase price for that amount of coke purchased hereunder that is proportionate to
two times SCL’s Non-Voting Capital Stock Interest shall be at

 

 

the Transfer Price and the purchase price for the remainder of coke purchased hereunder shall
be at the higher of (i) Market Price less 5% and (ii) the Transfer Price. The Transfer Price paid
by SCL hereunder together with the Transfer Price paid by WPSC under the WPSC Coke Supply Agreement
for all coke supplied under both such Coke Supply Agreements is intended to cover the Company’s
total costs and expenses of managing, operating and maintaining the Coke Facilities. As such,
“Transfer Price” means (a) all of the Company’s operating and administrative costs and expenses,
including depreciation and amortization, but excluding the capital and expense components of
refurbishment expenditures, plus (b) 5%, minus (c) all revenues received by the Company from the
sale of coke, coal tars, coke breeze, Nut Coke and chemicals to third parties and all revenues
received from WPSC for coke oven gasses and steam, allocated per ton among the Company’s production
of coke on a weekly basis. Without limiting the foregoing, the Transfer Price shall include all of
the Company’s: (i) raw materials cost (including coal and other supplies); (ii) manufacturing
costs; (iii) overhead; (iv) insurance; (v) governmental impositions; (vi) hourly and salaried labor
costs; (vii) charges to be paid by the Company under the Management Agreement and Operating
Agreement; (viii) costs and expenses incurred by the Company identified in the retained
responsibility provisions contemplated by Schedule B to each of the Management Agreement and the
Operating Agreement; and (ix) costs relating to loading any coke, immediately after it is produced,
into rail cars provided by SCL.

     Transfer Price Exclusions. Notwithstanding the foregoing, the Transfer Price shall not
include, and SCL shall be solely responsible for, all costs and expenses (including any
deterioration to the coke) relating to barge loading, stocking, de-stocking, screening or loading
coke, except for costs described in Section 2.1(a)(ix). The Transfer Price also shall not include
any costs, fees, disbursements or other expenditures relating to environmental conditions existing
prior to the date of this Agreement. The costs, fees, disbursements or other expenditures relating
to such corrective actions shall be subject to the terms of the LLC Agreement.

     Breach or Termination of the WPSC Coke Supply Agreement. SCL’s Transfer Price shall not
increase as a result of a breach or the termination of the WPSC Coke Supply Agreement (where such
breach or termination is due to default by WPSC or the Managers elected by WPSC). As such, if the
WPSC Coke Supply Agreement is breached or terminated prior to the termination of this Agreement
(where such breach or termination is due to default by WPSC or the Managers elected by WPSC), SCL’s
Transfer Price shall not increase, and the Transfer Price shall be calculated as if the WPSC Coke
Supply Agreement were in effect as if WPSC and the Company were complying with the terms thereof.
If, and to the extent that WPSC does not purchase the amount of coke required to be purchased by it
under the WPSC Coke Supply Agreement, then SCL shall have the right, but not the obligation, to
purchase any or all of such coke from the Company at the same price that WPSC would have paid for
such coke.

     Market Price. “Market Price” means (a) an arm’s length offer for sale of coke of similar
quantity, quality and availability by reference to third party transactions (taking into account
any material and relevant factors), or (b) if a price under clause (a) is not available, then the
average purchase price paid by SCL’s Affiliate in Dearborn, Michigan to non-affiliated third
parties for coke of similar quantity, quality and availability for the ninety (90) day period prior
to the date of sale (excluding prices paid by SCL to the Company). The prices calculated in clause
(b) above shall include all transportation costs to SCL’s Affiliate receiving yard in Dearborn,

 

 

Michigan), export licenses, duties, taxes, and loading and unloading costs. There shall be
deducted from prices calculated in clause (b) above any costs that would be incurred to transport
coke from the Coke Facilities to SCL’s rail receiving yard in Dearborn, Michigan.

     Invoices. The Company shall render an invoice to SCL each week by the third working day of
such week in relation to the coke delivered to SCL during the previous week.

     Terms of Payment. Terms of payment shall be net cash within fifteen (15) days from the date
of the Company’s invoice.

     Currency. All payments due hereunder shall be invoiced and paid in immediately available U.S.
dollars.

     Taxes. Any tax (including any applicable value added tax) or other governmental charge, or
increase thereof, upon the production, sale and/or shipment of the coke sold under this Agreement
(other than taxes based upon the Company’s net income), whether by national, foreign, federal,
state or municipal authorities, imposed, or becoming effective, on or after the date of this
Agreement, shall be the sole responsibility of SCL.

     Failure to Pay. The Company shall have the right, but not the obligation, to cease delivering
coke to SCL if SCL fails to pay the amounts due under this Article and does not cure such failure
within fifteen (15) calendar days after receiving written notice of such failure. Such right may
be exercised by the Company only by delivery to SCL of a writing that expressly contains the
exercise of such right by specific reference to this Section. The remedy of the Company set forth
in this Section shall be exercised solely by a Manager elected by WPSC at least three days prior to
cessation of delivery. When the default is cured, then deliveries shall resume. SCL shall
nevertheless be responsible for and shall pay to the Company the Transfer Price for any coke that
is manufactured by the Company, tendered to SCL under this Agreement and not accepted by SCL for
any reason other than non-conformance with Section 1.5 hereof. Subject to Section 2.2 of the WPSC
Coke Supply Agreement, in an effort to mitigate damages, the Company shall use commercially
reasonable efforts to sell to third parties any excess coke resulting as a consequence of the
Company’s election to ship a reduced amount of coke to SCL.

Delivery; Title

     Delivery. Subject to the provisions of this Agreement and the LLC Agreement, the coke sold
and purchased under this Agreement shall be delivered in approximately equal weekly increments to
the extent that such is commercially practicable and does not adversely affect either the Company
or WPSC. Except as otherwise provided in this Agreement or the LLC Agreement, including changes in
expected production and certain changes in the ownership of the Membership Interests of the
Company, to the extent that the Company produces 955,000 tons of coke in 2006, the Company shall
deliver to SCL approximately 37.17% of the coke produced at the Company in 2006 in accordance with
Schedule B attached hereto. The Company shall use commercially reasonable efforts to cooperate
with SCL in determining whether a more equal weekly distribution of coke deliveries can be
accommodated, so long as such does not adversely affect either the Company or WPSC. SCL shall be
responsible for arranging transportation of

 

 

coke from the Coke Facilities to SCL’s facility. If SCL does not make transportation
arrangements, the Company shall make transportation arrangements for SCL’s account.

     Point of Delivery; Acceptance. The coke sold and purchased under this Agreement shall be
delivered by the Company to SCL free on board pushed into railroad cars provided by SCL at tracks
to be identified in the Company’s Coke Facilities. The Company may pull such railroad cars to the
Ohio River rail bridge at the Company’s facility. WPSC will pull the railroad cars across the
bridge at no charge from the West Virginia side of the bridge on the Ohio River to an
interconnection point for the Wheeling & Lake Erie Railway on the Ohio side of the river, when
necessary. SCL shall provide reasonable notice to WPSC regarding where the coke will be shipped
(from Follansbee or from the Ohio River rail bridge). WPSC will also pull the railroad cars back
to the West Virginia side of the bridge, when necessary. SCL shall be deemed to have accepted all
coke that is contained in railcars accepted by its third party carrier(s).

     Weights. The coke sold and purchased under this Agreement shall be weighed by the Company’s
certified track scales. These weights shall govern and shall be used by the Company in invoicing
the coke delivered hereunder. Such scales shall be properly inspected and certified at intervals
of not more than six (6) months.

     Title and Risk of Loss. Title and all risk of loss, damage or destruction with respect to the
coke sold and purchased under this Agreement shall pass to and be assumed by SCL when delivery of
such coke has occurred in accordance with Section 3.2 of this Agreement.

     Provisions Applicable to Delivery. The Company shall cooperate with and provide assistance to
SCL when necessary or appropriate and the Parties shall communicate with each other regularly as
necessary to schedule and expedite shipment. The Company shall load all rail cars in accordance
with all Legal Requirements and any reasonable requirements of the carrier designated by SCL.

Representations and Warranties

     Joint. Each Party represents and warrants to the other Party that:

     Authority. It is duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation or organization. It has the power and authority to enter into this
Agreement and perform its obligations hereunder.

     Authorization; Enforceability. This Agreement has been duly executed and delivered by it and
constitutes its legal, valid and binding obligations, enforceable against it in accordance with
their respective terms. It has duly and validly authorized this Agreement.

     No Violations. The execution and delivery by it of this Agreement shall not, directly or
indirectly (with or without notice or the lapse of time or both): (i) contravene, conflict with,
or result in a violation of any provision of its governing documents or the resolutions adopted by
its board or directors or board of managers; (ii) contravene, conflict with, result in a breach of,
constitute a default or an event of default under, give any person the right to consent, approve,
terminate or revoke (including the right to consent, approve, terminate or revoke upon a change

 

 

of control or deemed assignment), or give to any person the right to cause any of the
foregoing with respect to, any material agreement or instrument to which it is a party or by which
any of its assets may be bound; or (iii) violate in any material respect, or give any person the
right to obtain any material relief or exercise any material remedy under, any Legal Requirement to
which it is subject, or by which its assets may be bound or affected, or give any person the right
to challenge any of the transactions contemplated by this Agreement. No person is required to
make, give or obtain any approvals or consents in connection with the execution, delivery or
performance by it of this Agreement, except for those obtained.

     Company’s Representation. The Company represents and warrants to SCL that the coke delivered
under this agreement will be of the quality identified in Section 1.5.

EXCEPT FOR THE COMPANY’S OBLIGATIONS UNDER THIS SECTION 4.2, THESE ARE THE ONLY REPRESENTATIONS OR
WARRANTIES THAT THE COMPANY MAKES AND ALL OTHER EXPRESS OR IMPLIED WARRANTIES, UNDER STATUTE OR
ARISING OTHERWISE IN LAW FROM A COURSE OF DEALING OR USAGE OF TRADE, INCLUDING WITHOUT LIMITATION,
ANY OTHER WARRANTY OF MERCHANTABILITY, WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE OR USE OR
WARRANTY AGAINST INFRINGEMENT, ARE DISCLAIMED BY THE COMPANY.

Representative; Limitation of Liability

     Nomination of Representative. Each Party shall nominate a representative to act as the
individual representing such Party in respect of the matters covered by this Agreement (each a
“Representative”). A Party may at any time and from time to time substitute its Representative by
written notice to the other Party.

     LIMITATION OF LIABILITY. IN NO EVENT SHALL EITHER PARTY OR THEIR RESPECTIVE EMPLOYEES,
AGENTS, OFFICERS, DIRECTORS OR AFFILIATES BE LIABLE TO THE OTHER PARTY FOR ANY CONSEQUENTIAL
DAMAGES OF ANY TYPE IN CONNECTION WITH THIS AGREEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES, EXCEPT FOR THOSE CONSEQUENTIAL DAMAGES OF PERSONS WHO ARE NOT
AFFILIATES OF WPSC, THE COMPANY OR SCL, ARISING OUT OF CLAIMS AGAINST THE COMPANY OR SCL BY SUCH
PERSONS. “CONSEQUENTIAL DAMAGES” MEANS INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, CONSEQUENTIAL
(INCLUDING WITHOUT LIMITATION LOSS OF FUTURE PROFITS, REVENUE OR INCOME, BUSINESS INTERRUPTION, AND
LOSS OF BUSINESS REPUTATION OR OPPORTUNITY), AND PUNITIVE DAMAGES.

Force Majeure; Emergency

     Force Majeure. The failure or delay of the Company to perform any obligation under this
Agreement solely by reason of acts of God, nature or the public enemy, terrorism, nuclear

 

 

disaster, accidents, explosions, fire, flood, river freeze-ups, failure or availability of
river locks, drought, perils of the sea, strikes, lockouts, labor disputes, riots, sabotage,
embargo, war (whether or not declared and whether or not the United States is a participant), civil
insurrection, acts of violence, acts of government, federal, state or municipal legal restriction
or limitation or compliance therewith, failure or delay of transportation (including railway car
and barge shortages), new or amended Legal Requirements, contract disputes, failure of plants or
facilities, failure of equipment (including emergency outages of equipment or facilities or to make
repairs to avoid breakdowns thereof or damage thereto), failures of suppliers, shortage of raw
materials (including coal of the type required to produce coke), supplies, equipment, fuel, power,
or other operational necessities, interruption or curtailment of power supply, or any other
circumstance of a similar or different nature beyond the reasonable control of the Party affected
thereby (“Force Majeure”) shall not be deemed to be a breach of this Agreement.

     Emergency. The failure or delay of the Company to perform any obligation under this Agreement
solely by reason of an Emergency shall not be deemed to be a breach of this Agreement.

     Accommodation During a Force Majeure or Emergency. During the occurrence of a Force Majeure
or an Emergency, SCL may engage a third party to provide coke that the Company is unable to
provide. Notwithstanding anything herein to the contrary, in the case of a Force Majeure or an
Emergency, the Parties shall take immediate and diligent actions to prevent or minimize such
threatened damage, injury or loss or to counteract or otherwise mitigate the effects of such Force
Majeure or Emergency. In the event of a Force Majeure or an Emergency, each Party shall notify the
other of the Force Majeure or Emergency as soon as practicable following the occurrence thereof,
which notice shall include details with respect to any action being taken in response thereto.

Audit Review

     Audits. SCL or its designee shall have the right to carry out audit tasks of a financial
nature to verify any and all amounts paid or payable by SCL to the Company. The Company shall make
available, at the Coke Facilities, to SCL or its designee, and SCL or its designee shall have the
right to review, all contracts, books, records, and other documents relating to all costs paid or
incurred by the Company that comprise the Transfer Price. SCL or its designee shall also have the
right to conduct a physical inventory audit. The cost of any audit shall be borne by SCL.

     Frequency of Audits. Audits, as identified in Section 7.1, shall not be requested by SCL more
frequently than once every year and no claim may be brought as to any invoice more than eighteen
(18) months after the date that the invoice is rendered pursuant to Article II.

     Scheduling Audits. The scheduling and length of any audit review shall be kept to a minimum
so as to ensure as little disturbance as possible. The audit review shall commence not later than
four (4) weeks after the Company’s receipt of the audit notification from SCL.

 

 

Termination; Survival

     Term. The term of this Agreement (the “Term”)
 shall commence on January 1, 2006 and continue
for the useful lives of the Coke Batteries, unless earlier terminated under the unique
circumstances identified in Section 8.2.

     Termination. This Agreement may only be terminated as follows:

     the dissolution of the Company, as provided in the LLC Agreement; or

     by election of a Party if the other Party is in breach of this Agreement and does not cure
such breach within sixty (60) days (but within fifteen (15) calendar days for a breach involving
the payment for coke) of receiving written notice of such breach;

Any termination of this Agreement shall not relieve either the Company or SCL from any liability
for breach under this Agreement that may exist prior to or as a result of the termination of this
Agreement. Unless any non-breaching party would otherwise be materially prejudiced, the
termination rights provided in clause (b) shall be suspended if any Party in good faith challenges
the allegation of breach giving rise to the notice of termination due to such breach and delivers a
notice of dispute thereof under Section 10.11 within thirty (30) days after receiving notice of
termination. Such suspension shall remain in effect only so long as the parties are actively
pursuing their remedies in respect of such alleged breach under Section 10.11. Such suspension
shall terminate if the parties are no longer pursuing their remedies in respect of such alleged
breach under Section 10.11, or if such alleged breach is determined not to be a breach under
Section 10.11.

     Survival. The following Articles and Sections of this Agreement shall survive any termination
of this Agreement: Article V (Representative; Limitation of Liability), Article VII (Audit
Review), Article VIII (Termination; Survival), Section 10.1 (Governing Law), Section 10.3 (Due
Notice), Section 10.10 (Confidentiality) and Section 10.11 (Dispute Resolution). Notwithstanding
the termination of this Agreement, the other provisions of this Agreement shall be deemed to
survive, and the Parties shall continue to perform their obligations under this Agreement, for so
long as reasonably necessary for the Parties to fulfill any outstanding obligations created prior
to the termination in reasonable reliance on this Agreement and to otherwise facilitate a smooth
end to the relationship created hereunder.

Definitions

     Definitions. In addition to other terms defined elsewhere in this Agreement, the following
words have the following meanings in this Agreement:

     “Affiliate” means, when used with reference to a specified person, any person who directly or
indirectly, through one or more intermediaries, owns or is owned by or is under common ownership
with the specified person, where such ownership means holding more than fifty percent (50%) of any
class of equity securities of the specified person.

 

 

     “Agreement” means this Coke Supply Agreement, as it may be amended from time to time.

     “Bundled Interests” has the meaning set forth in the LLC Agreement.

     “Coke Batteries” has the meaning set forth in the LLC Agreement.

     “Coke Facilities” has the meaning set forth in the LLC Agreement.

     “Company” has the meaning set forth in the Recitals.

     “Consequential Damages” has the meaning set forth in Section 5.2.

     “Contribution Agreement” has the meaning set forth in the LLC Agreement.

     “Due Notice” has the meaning set forth in Section 10.3.

     “Emergency” means (a) any situation that is likely to impose an immediate threat of injury to
any individual or material damage or material economic loss to all or any part of the Coke
Facilities, or (b) any unexpected material interruption in the production of coke.

     “Force Majeure” has the meaning set forth in Section 6.1.

     “Legal Requirement” means any applicable international, multinational, national, foreign,
federal, state, municipal, local (or other political subdivision) or administrative law,
constitution, statute, code, ordinance, rule, regulation, requirement, standard, policy or guidance
having the force of law, treaty, judgment or order of any kind or nature whatsoever including any
judgment or principle of common law.

     “LLC Agreement” has the meaning set forth in the Recitals.

     “Management Agreement” means that certain Management Agreement between the Company and WPSC of
even date herewith.

     “Manager” has the meaning set forth in the LLC Agreement.

     “Market Price” has the meaning set forth in Section 2.3.

     “Membership Interests” has the meaning set forth in the LLC Agreement.

     “Non-Voting Capital Stock Interests” has the meaning set forth in the LLC Agreement.

     “Nut Coke” means coke otherwise meeting the quality specifications in Schedule A and of a size
equal to or greater than 3/8 inch and less than 3/4 inch.

     “Operating Agreement” means that certain Operating Agreement between the Company and WPSC of
even date herewith.

 

 

     “Party” means SCL or the Company, individually, and “Parties” means SCL and the Company,
collectively.

     “person” means and includes a natural person, a corporation, an association, a partnership, a
limited liability company, a trust, a joint venture, an unincorporated organization, a business, a
governmental body or any other legal entity.

     “Representative” has the meaning set forth in Section 5.1.

     “SCL” has the meaning set forth in the Recitals.

     “SNA” means Severstal North America, Inc., a Delaware corporation.

     “Term” has the meaning set forth in Section 8.1.

     “ton” means two thousand (2,000) pounds.

     “Transfer Price” has the meaning set forth in Section 2.1.

     “WPSC” has the meaning set forth in the Recitals.

     “WPSC Coke Supply Agreement” means that certain Coke Supply Agreement between WPSC and the
Company of even date herewith.

     Construction. As used in this Agreement, unless a clear contrary intention applies: (a)
references to “Article” or “Section” are to an article or section of this Agreement, and references
to “hereunder,” “hereof,” “hereto,” and words of similar import are references to this Agreement as
a whole and not to any particular Article, Section or other provision hereof; (b) references to the
singular number include the plural number, and vice versa, and reference to any gender includes
each other gender; (c) all “Exhibits” and “Schedules” referred to in this Agreement are to Exhibits
and Schedules attached to this Agreement and are incorporated into this Agreement by reference and
made a part of this Agreement; (d) “include”, “includes” and “including” are deemed to be followed
by “without limitation” whether or not they are in fact followed by such words or words of like
import; (e) with respect to the determination of any period of time, “from” means “from and
including” and “to” means “to but excluding”; (f) the headings of the various articles, sections
and other subdivisions of this Agreement are for convenience of reference only and shall not
modify, define or limit any of the terms or provisions of this Agreement; and (g) reference to any
agreement, document or instrument means such agreement, document or instrument as amended or
modified and in effect from time to time in accordance with the terms thereof and shall include all
addenda, exhibits and schedules thereto.

General

     Governing Law. This Agreement will be governed by the laws of the State of Delaware, U.S.A.,
without regard to conflicts of laws principles.

 

 

     Nature of Relationship; Agency. Each Party is and for all purposes shall be deemed to be an
independent contractor with respect to the performance of its obligations and duties under this
Agreement. Nothing in this Agreement shall constitute or create a joint venture, partnership,
agency or any other similar arrangement between the Parties whatsoever. Neither Party shall have
the authority to assume or create obligations on behalf of the other Party, and neither Party shall
take any action that has the effect of creating the appearance of its having such authority. This
Agreement shall not be deemed to constitute either Party to be the agent of the other Party.

     Due Notice. Any notice for any purpose required to be given to a Party under this Agreement
shall be given by Due Notice. “Due Notice” means delivery of written notice by overnight delivery
to the Corporate Secretary of SCL and to the President of the Company. Changes to specified
officers shall be by Due Notice. Notice will be effective after actual delivery of such notice by
overnight delivery. Notice shall be accompanied by facsimile, email and telephone (which shall not
themselves constitute notice). Due Notice shall be sent to the following addresses:

If to the Company, addressed to:

c/o Wheeling-Pittsburgh Steel Corporation

1134 Market Street

Wheeling, West Virginia 26003

Attention: Corporate Secretary

Facsimile No. (304) 234-2555:

With a required copy (which shall not constitute Due Notice):

Kirkpatrick & Lockhart Nicholson Graham LLP

535 Smithfield Street

Pittsburgh, Pennsylvania 15222-2312

Attention: David L. Forney, Esq.

Facsimile No.: (412) 355-6501

If to SCL, addressed to:

SNA Carbon, LLC

3001 Miller Road

P.O. Box 1699

Dearborn, Michigan 48121

Attention: Corporate Secretary

Facsimile No.: (313) 845-0199

With a required copy (which shall not constitute Due Notice):

Clark Hill PLC

500 Woodward Avenue

Suite 3500

Detroit, Michigan 48226-3435

 

 

Attention: Blair B. Hysni, Esq.

Facsimile No.: (313) 965-8252

Due Notice shall also be sent to any additional representative requested by a Party in writing from
time to time, but failure to give notice to such additional representatives shall not be a failure
of Due Notice.

     Headings. The various headings used in this Agreement are for convenience only and are not to
be used in interpreting the text of the Articles and Sections in which they appear or to which they
relate.

     Counterparts. This Agreement may be executed in one or more counterparts, each of which will
be deemed to be an original copy of this Agreement and all of which, when taken together, will be
deemed to constitute one and the same agreement.

     No Third Party Rights. WPSC is an intended third party beneficiary to Sections 1.1, 1.2, 1.3,
1.4 and 8.3 of this Agreement and the Parties desire to grant WPSC a legal or equitable right,
remedy or claim under or with respect to those provisions of this Agreement. Except as provided
above, nothing expressed or referred to in this Agreement will be construed to give any person
other than the Parties any legal or equitable right, remedy or claim under or with respect to this
Agreement or any provision of this Agreement. This Agreement and all of its provisions and
conditions are for the sole and exclusive benefit of the Parties and their successors and assigns.

     Assignment; Successors. SCL acknowledges that its rights, duties and obligations under this
Agreement are part of the Bundled Interests and are subject to the transfer restrictions contained
in the LLC Agreement. SCL further acknowledges that, as part of the Bundled Interests, it may
assign its rights, duties and obligations under this Agreement only if such assignment is not
prohibited by the terms of the LLC Agreement. The Company may not assign or delegate (by operation
of law or otherwise) this Agreement or any of its rights, duties or obligations under this
Agreement without the prior written consent of SCL, which consent shall not be unreasonably
withheld; provided, however, it shall not be unreasonable for SCL to withhold its consent to the
extent that any transfer would require SCL to seek redress under this Agreement in a country other
than the United States. This Agreement shall be binding upon, and shall inure to the benefit of,
the Parties hereto and their respective successors and permitted assigns.

     Entire Agreement; Amendment. Subject to Section 10.13 below, this Agreement (including the
Schedules hereto, which are made a part of this Agreement by this reference) constitutes the entire
agreement of the Parties with respect to the subject matter hereof, and this Agreement supersedes
all prior and contemporaneous agreements, whether oral or written. This Agreement may be amended
only by a writing signed by an authorized representative of each of SCL and WPSC (in the case of
the Company). A course of conduct between the Parties shall not constitute an amendment or waiver
of any provision of this Agreement.

     Severability. If any provision of this Agreement not essential to accomplishing its purposes
is held invalid or unenforceable by any court of competent jurisdiction, the other

 

 

provisions of this Agreement will remain in full force and effect. Any provision of this
Agreement held invalid or unenforceable only in part or degree will remain in full force and effect
to the extent not held invalid or unenforceable.

     Confidentiality. The Parties shall be bound by the confidentiality provisions set forth in
the LLC Agreement as if such provisions were fully set forth herein.

     Dispute Resolution. The Parties shall resolve all disputes under this Agreement through
mediation and arbitration pursuant to procedures substantially identical to those set forth in
Article XIII of the LLC Agreement.

     Consideration. The Parties acknowledge the mutual receipt and sufficiency of valuable
consideration for the formation of the legally binding contract represented by this Agreement.
That consideration includes all of the representations, warranties, covenants and obligations
contained in this Agreement. The recitals to this Agreement are hereby incorporated into this
Agreement by this reference and made a part hereof.

     The LLC Agreement Controls Conflicts. Except as otherwise expressly provided herein, any
conflict between any provision in the LLC Agreement and this Agreement shall be presumed to be
resolved in favor of the LLC Agreement, subject to resolution of such conflict on its merits based
on the reasonably likely intentions of the Parties. This Agreement is an independent agreement
between the Parties and is separate and distinct from the LLC Agreement.

 

 

     IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties have caused this
Agreement to be executed by their duly authorized representatives on the date set forth below.

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	SNA CARBON, LLC	 	MOUNTAIN STATE CARBON, LLC
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	William E. Hornberger
	 	 	 	By:
	 	/s/ James E. Muldoon	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:  

	 	William E. Hornberger
	 	 	 	Name:  
	 	James E. Muldoon	 	 
	Title:

	 	Executive Vice President
	 	 	 	Title:
	 	President and Secretary	 	 
	Date:

	 	9/29/05
	 	 	 	Date:
	 	9/29/05EX-10.3

 

Exhibit 10.3

THIRD AMENDMENT

(Term Loan Agreement)

          THIRD AMENDMENT, dated as of September 29, 2005 (this “Amendment”), to the Term Loan
Agreement, dated as of July 31, 2003 (as amended, the “Term Loan Agreement”), among
Wheeling-Pittsburgh Corporation, a Delaware corporation (“Holdings”), Wheeling-Pittsburgh
Steel Corporation, a Delaware corporation (the “Borrower”), the Lenders parties to the Term
Loan Agreement, the Documentation Agent and Syndication Agent named therein, Royal Bank of Canada,
as administrative agent (in such capacity, the “Administrative Agent”), the Emergency Steel
Loan Guarantee Board (the “Federal Guarantor”) and the West Virginia Housing Development
Fund (the “State Guarantor”).

WITNESSETH:

          WHEREAS, Holdings, the Borrower, the Lenders, the Administrative Agent, the Federal Guarantor
and the State Guarantor are parties to the Credit Agreement;

          WHEREAS, the Borrower has requested that the Lenders and the Federal Guarantor agree to make
certain amendments relating to the Term Loan Agreement as set forth herein; and

          WHEREAS, the Lenders and the Federal Guarantor are willing to agree to such amendments, in
each case subject to the terms and conditions set forth herein.

          NOW, THEREFORE, the parties hereto agree as follows:

          1. Amendments to Section 1.1. Section 1.1 of the Term Loan Agreement is hereby
amended by:

          (a) amending and restating in their entirety the following definitions:

     “Asset Sale”: any Disposition of property or series of related Dispositions of
property (excluding any such Disposition permitted by clause (a), (b), (c), (d) or (e) of
Section 6.5) that yields gross proceeds to any Group Member (valued at the initial principal
amount thereof in the case of non-cash proceeds consisting of notes or other debt securities
and valued at fair market value in the case of other non-cash proceeds) in excess of
$250,000.

     “Consolidated Fixed Charge Coverage Ratio”: for any period, the ratio of (a)
the sum (without duplication) of Consolidated EBITDA for such period and Consolidated Lease
Expense for such period less the aggregate amount actually paid by Holdings and its
Subsidiaries during such period on account of Capital Expenditures (excluding Capital
Expenditures funded from or reimbursed by (x) amounts on deposit in the Capital Expenditure
Deposit Account or the Cash Collateral Account and (y) the Coke Plant Joint Venture) to (b)
Consolidated Fixed Charges for such period.

 

 

2

     “Excess Cash Flow”: for any fiscal quarter of the Borrower, the excess, if any,
of (a) the sum, without duplication, of (i) Consolidated Net Income for such fiscal quarter,
(ii) the amount of all non-cash charges (including depreciation and amortization and items
(d) through (j) in the definition of Consolidated EBITDA) deducted in arriving at such
Consolidated Net Income, (iii) cash decreases in Consolidated Operating Working Capital,
(iv) to the extent not included in (ii) above, the cash impact of increases in post-petition
employee benefits or post-petition “Other Liabilities” (as reflected in the non-current
section of Holdings’ balance sheet) and (v) the aggregate amount of payments received during
such fiscal quarter on account of the principal of loans, and the returned capital in
Investments, made as contemplated by Sections 6.8(i) and (j) over (b) the sum, without
duplication, of (i) the amount of all non-cash credits included in arriving at such
Consolidated Net Income, (ii) cash increases in Consolidated Operating Working Capital,
(iii) the aggregate amount actually paid or committed to be paid (such committed amounts to
be excluded from the computation of Excess Cash Flow in future quarters) by the Borrower and
its Subsidiaries in cash during such fiscal quarter on account of Capital Expenditures
(excluding expenditures to the extent (x) funded by drawings on the Cash Collateral Account
or the Capital Expenditure Deposit Account (y) financed with the proceeds of any
Reinvestment Deferred Amount or (z) reimbursed by the Coke Plant Joint Venture), (iv)
reductions in Funded Debt, (v) the cash impact of decreases in post-petition employee
benefits or post-petition “Other Liabilities” (as reflected in the non-current section of
Holdings’ balance sheet), (vi) the aggregate net amount of non-cash gain on the Disposition
of property by the Borrower and its Subsidiaries during such fiscal quarter (other than
sales of inventory in the ordinary course of business), to the extent included in arriving
at such Consolidated Net Income and (vii) the aggregate amount of loans and investments made
during such fiscal quarter as contemplated by Sections 6.8(i) and (j).

     “Joint Ventures”: Ohio Coatings Company, an Ohio corporation,
Wheeling-Nisshin, Inc., a Delaware corporation, and Feralloy-Wheeling Specialty Processing
Co., a Delaware partnership, and, after the Third Amendment Effective Date, the Coke Plant
Joint Venture.

     “Required Stated Amount”: $7,500,000, provided that the Administrative
Agent is by this proviso instructed, on or around the Third Amendment Effective Date, (a) to
consent to an amendment to the Interest Reserve Letter of Credit (including any replacement
Interest Reserve Letter of Credit) that provides for the Required Stated Amount (as it is
reflected in the Interest Reserve Letter of Credit) to be promptly reduced to the relevant
amount set forth below, upon the issuer thereof receiving a notice from the Administrative
Agent on or after the Reference Date opposite such amount, to the effect that (i) all
interest required to be paid on the Loans on or prior to such Reference Date has been paid
and (ii) the Borrower has made all deposits required to be made on or prior to such
Reference Date pursuant to Section 5.15, and (b) to provide the notice as contemplated in
clause (a) above on or promptly after such Reference Date so long as the statements in such
notice are then true and correct:

 

 

3

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reference	 	 	 	 	 	 	 	 	 	Required
	Date	 	 	 	 	 	 	 	 	 	Stated Amount
	7/5/2005
	 	 	 	 	 	 	 	 	 	 	6,747,000.00	 
	10/3/2005
	 	 	 	 	 	 	 	 	 	 	6,559,500.00	 
	1/3/2006
	 	 	 	 	 	 	 	 	 	 	6,372,000.00	 
	4/3/2006
	 	 	 	 	 	 	 	 	 	 	6,184,500.00	 
	7/3/2006
	 	 	 	 	 	 	 	 	 	 	5,997,000.00	 
	10/2/2006
	 	 	 	 	 	 	 	 	 	 	5,809,500.00	 
	1/2/2007
	 	 	 	 	 	 	 	 	 	 	5,622,000.00	 
	4/2/2007
	 	 	 	 	 	 	 	 	 	 	5,434,500.00	 
	7/2/2007
	 	 	 	 	 	 	 	 	 	 	5,247,000.00	 
	10/2/2007
	 	 	 	 	 	 	 	 	 	 	5,059,500.00	 
	1/2/2008
	 	 	 	 	 	 	 	 	 	 	4,872,000.00	 
	4/1/2008
	 	 	 	 	 	 	 	 	 	 	4,684,500.00	 
	7/2/2008
	 	 	 	 	 	 	 	 	 	 	4,497,000.00	 

     “Revolving Loan Agreement”: the Amended and Restated Revolving Loan
Agreement dated as of July 8, 2005 among Holdings, the Borrower, the banks and other
financial institutions from time to time party thereto, Royal Bank of Canada, as
administrative agent, General Electric Capital Corporation, as inventory and receivables
security agent and documentation agent for the lenders, and the other agents named therein.

     “Subsidiary”: with respect to any Person, (a) any corporation of which an
aggregate of more than 50% of the outstanding Capital Stock having ordinary voting power to
elect a majority of the board of directors of such corporation (irrespective of whether, at
the time, Capital Stock of any other class or classes of such corporation shall have or
might have voting power by reason of the happening of any contingency) is at the time,
directly or indirectly, owned legally or beneficially by such Person or one or more
Subsidiaries of such Person, or with respect to which any such Person has the right to vote
or designate the vote of 50% or more of such Capital Stock whether by proxy, agreement,
operation of law or otherwise, and (b) any partnership or limited liability company in which
such Person and/or one or more Subsidiaries of such Person shall have an interest (whether
in the form of voting or participation in profits or capital contribution) of more than 50%
or of which any such Person is a general partner or may exercise the powers of a general
partner. Unless the context otherwise requires, each reference to a Subsidiary shall be a
reference to a Subsidiary of the Borrower. For purposes hereof, the Coke Plant Joint
Venture shall not be treated as a Subsidiary of the Borrower until such time as Borrower
and/or one or more Subsidiaries of Borrower shall have affirmatively exercised any rights,
including any rights under the operating agreement of the Coke Plant Joint Venture, which
would cause any of them to possess the power to elect more than 50% of the managers of the
Coke Plant Joint Venture; provided, however, that for purposes of Sections 3.10, 3.13, 3.14
and 5.11 and for purposes of the definition of “Group Member”, the Coke Plant Joint Venture
shall be treated as a Subsidiary of the Borrower at such time as Borrower and/or one or more
Subsidiaries of

 

 

4

Borrower shall have the present power to make such election, regardless of whether or
not such power has been affirmatively exercised.

     “Third Amendment”: Third Amendment, dated as of September 29, 2005, to this
Agreement.

     “Third Amendment Effective Date”: The date on which the conditions precedent
set forth in Section 17 of the Third Amendment shall have been satisfied or waived.

     (b) inserting the following new definitions in the appropriate alphabetical order:

     “2005 Allowance for Unusual Items”: to be included in the calculation of
Consolidated EBITDA for (a) for purposes of covenant calculation carried out in respect of
the 2005 fiscal year and for the period ending (i) September 30, 2005 $56,000,000 and (ii)
December 31, 2005, $88,000,000 and (b) for the purposes of covenant calculations carried out
subsequent to the 2005 fiscal year, nil.

     “Coke Plant Joint Venture”: the joint venture to be known as Mountain State
Carbon, LLC to be formed on, or around the Third Amendment Effective Date by and between the
Borrower and SNA Carbon, LLC (“SNA”), a Delaware limited liability company and
wholly-owned subsidiary of Severstal North America, Inc., a Delaware corporation, pursuant
to the Amended and Restated Limited Liability Company Agreement of Mountain State Carbon,
LLC dated as of September 29, 2005 between the Borrower and SNA (the “Mountain State
Carbon LLC Agreement”) in connection with the formation of which (i) the Borrower will
transfer the West Virginia Coke Production Plant, the Ohio Pump House and certain related
assets to the joint venture and contribute capital and make loans to the joint venture, (ii)
SNA will contribute capital and certain assets to the joint venture and (iii) the joint
venture will become the manager and operator of the West Virginia Coke Production Plant and
the Ohio Pump House.

     “West Virginia Coke Production Plant”: the Borrower’s coke-producing facility
located in Follansbee, West Virginia.

     “Ohio Pump House”: the Borrower’s pump house facility located in Steubenville,
Ohio.

     (c) amending clauses (g), (i) and (j) of the definition of “Consolidated
EBITDA” in its entirety to read as follows:

          (g) non-cash charges in connection with buyout payments, VEBA Trust and profit sharing
payments made to employees,

          (i) contributions by the Borrower to the VEBA Trust of Capital Stock of Holdings
(including amounts contributed on the Closing Date),

          (j) any non-cash charges in connection with other post-retirement employee benefits
(OPEB), and

 

 

5

(d) inserting the following after clause (j) of the definition of “Consolidated
EBITDA”:

               (k) the 2005 Allowance for Unusual Items

(e) inserting the following sentence after clause (d) thereafter:

               “Proceeds from any Business Interruption Insurance claims, or other such claims made in
2005, shall not be included in the definition of Consolidated EBITDA.”

          2. Amendment to Section 5.1. Section 5.1 of the Term Loan Agreement is hereby amended
by:

          (a) inserting the following paragraph after paragraph (d) thereof:

        (e) concurrently with the delivery of financial statements for each applicable quarter
or annual period of Holdings, a certificate, showing in sufficient detail the calculation of
Excess Cash Flow, certified by a Responsible Officer as being fairly stated in all material
respects.

          3. Amendment to Section 5.2(a). Paragraph (a) of Section 5.2 of the Term Loan
Agreement is hereby restated in its entirety as follows:

   (a) to the Administrative Agent, the Federal Guarantor, the State Guarantor and each
Lender, concurrently with the delivery of the financial statements referred to in Section
5.1(a), a certificate of the independent certified public accountants substantially in the
form of Schedule 5.2(a);

          4. Amendment to Section 5.3(a). Paragraph (a) of Section 5.3 of the Term Loan
Agreement is hereby amended by deleting the phrase “the month in which the Performance Acceptance
Date falls” and substituting in lieu thereof “December 2004”.

          5. Amendment to Section 5.12. Section 5.12 of the Term Loan Agreement is hereby
amended by inserting the following section after paragraph (d) thereof:

   (e) with respect to any joint venture (including, without limitation, the Coke Plant
Joint Venture) entered into on or around the Third Amendment Effective Date by any Group
Member, promptly execute and deliver to the Collateral Agent such Security Documents as the
Administrative Agent deems necessary or advisable to grant to the Collateral Agent, for the
benefit of the Administrative Agent and the Lenders, a perfected first priority security
interest (or to affirm the attachment and perfection of any such security interest) in (i)
the Capital Stock of such joint venture that is owned by any Group Member, provided, that
any pledge agreement executed and delivered by any Group Member with respect to its Capital
Stock in such joint venture, shall be on terms substantially similar to those JV Pledge
Agreements previously delivered hereunder, and (ii) any other form of Collateral (as defined
in the Security Agreement) associated with such joint venture and in which any Grantor has
an interest.

 

 

6

          6. Amendment to Section 6.1. Paragraph (d) of Section 6.1 of the Term Loan Agreement
is hereby deleted in its entirety.

          7. Amendment to Section 6.2. Paragraph (h) of Section 6.2 of the Term Loan Agreement
is hereby restated in its entirety as follows:

   (h) Indebtedness of any Loan Party in respect of the Revolving Loan Agreement not to
exceed $225,000,000 in aggregate principal amount and any refinancings, refundings, renewals
or extensions thereof (without increasing the committed amount or shortening the maturity
thereof);

          8. Amendment to Section 6.5. Section 6.5 of the Term Loan Agreement is hereby amended
by inserting a new paragraph between existing paragraphs (d) and (e) (and relettering existing
paragraph (e) as new paragraph (f)) as follows:

(e) the transfer of the West Virginia Coke Production Plant, the Ohio Pump House and
certain related assets to the Coke Plant Joint Venture (including any reimbursement of coke
battery refurbishment expenses by the Coke Plant Joint Venture to the Borrower) in exchange
for a first priority security interest in the interests of any Group Member in the Coke
Plant Joint Venture as contemplated by Section 5.12(e) of the Term Loan Agreement; and

          9. Amendments to Section 6.7. Section 6.7 of the Term Loan Agreement is hereby
amended by:

          (a) deleting paragraph (a) in its entirety and substituting in lieu thereof:

(a) [Intentionally Reserved];

          (b) deleting paragraph (b) in its entirety and substituting in lieu thereof:

(b) [Intentionally Reserved];

          (c) deleting paragraph (d) in its entirety and substituting in lieu thereof:

(d) [Intentionally Reserved]; and

          (d) amending and restating paragraph (e) in its entirety as follows:

        (e) Capital Expenditures of the Borrower and its Subsidiaries not exceeding for any
fiscal year of the Borrower the amount set forth for such fiscal year in Schedule 6.7;
provided, that (i) up to 50% of any such amount referred to in Schedule 6.7, if not so
expended in the fiscal year for which it is permitted, may be carried over for expenditure
in the next succeeding fiscal year (but not further), (ii) Capital Expenditures made
pursuant to this Section during any fiscal year shall be deemed made, first, in respect of
amounts permitted for such fiscal year as provided above and, second, in respect of amounts
carried over from the prior fiscal year pursuant to clause (i) above and

 

 

7

(iii) Capital Expenditures made with the proceeds of any Reinvestment Deferred Amount
shall not be counted in determining compliance with this Section 6.7.

          10. Amendments to Section 6.8. Section 6.8 of the Term Loan Agreement is hereby
amended by deleting existing paragraph (h) and inserting the following new paragraphs thereof:

     (h) the Investment of the West Virginia Coke Production Plant, the Ohio Pump House and
certain related assets and administrative resources in the Coke Plant Joint Venture;

     (i) working capital loans to the Coke Plant Joint Venture in an outstanding principal
amount not to exceed $24,000,000 at any time, provided that (i) no Default or Event
of Default shall occur or be continuing after giving effect to the making of any such loan,
(ii) the repayment obligation of the Coke Plant Joint Venture with respect to such loan
shall not be subordinated to any other obligation of the Coke Plant Joint Venture and shall
be secured, together with any working capital loans made by SNA, by perfected first lien
security interests in the current assets of the Coke Plant Joint Venture (including its cash
and Cash Equivalents) pursuant to documentation reasonably satisfactory to the
Administrative Agent and (iii) the Borrower shall deliver the promissory note or notes
evidencing such loans to the Collateral Agent for the benefit of the Administrative Agent
and the Lenders under the Security Agreement;

     (j) other Investments by any Group Member in the Coke Plant Joint Venture in an
aggregate amount not to exceed $20,000,000 in any fiscal year or $45,000,000 in the
aggregate during the term of this Agreement (exclusive of any investments therein pursuant
to paragraphs (h) and (i) above), provided that (i) in the case of any such
Investment representing a Deficiency Contribution (as defined in the Mountain State Carbon
LLC Agreement) such Investment shall be in the form of a loan (which loans shall be secured
together with the working capital loans referred in paragraph (i) above on the same terms as
such working capital loans and shall be evidenced by one or more promissory notes delivered
to the Collateral Agent for the benefit of the Administrative Agent and the Lenders under
the Security Agreement) and (ii) in the case of any such Investment (A) after giving effect
to the making of such Investment, Borrowing Availability shall exceed $75,000,000 and no
Default or Event of Default shall occur or be continuing after giving effect to the making
of such Investment and (B) the amount of such Investment will reduce the amount of
Investments permitted by Section 6.8(k); and

     (k) in addition to Investments otherwise expressly permitted by this Section and
subject to Section 6.8(j) above, Investments by the Borrower or any of its Subsidiaries in
an aggregate amount (valued at cost) not to exceed (i) $5,000,000 in any fiscal year or (ii)
$45,000,000 in the aggregate during the term of this Agreement; provided, that
immediately after giving effect to any such Investment (including any Indebtedness incurred
or assumed in connection therewith), (A) the Borrower shall be in pro forma compliance with
the covenants set forth in Section 6.1 as of the end of the most recently completed period
of four fiscal quarters for which financial statements have been delivered pursuant to
Section 5.1 as if such Investment had been made (and such

 

 

8

Indebtedness incurred) at the beginning of such period and (B) in the case of an
Investment in an amount equal to or greater than $5,000,000, either (I) the business
operations to be acquired shall have had positive EBITDA (calculated in the same manner set
forth in the definition “Consolidated EBITDA”) for the period of 12 months immediately prior
to the consummation of such Investment or (II) after giving effect to the Investment (and
any Indebtedness incurred therewith) and any costs savings to be achieved or other
adjustments to Consolidated EBITDA to be made in connection therewith (in each case which
are approved by an independent third party reasonably satisfactory to the Administrative
Agent), the pro forma Consolidated EBITDA of Holdings as of the end of the most recently
completed period of four fiscal quarters for which financial statements have been delivered
pursuant to Section 5.1 shall be greater than or equal to the actual Consolidated EBITDA of
Holdings as reported to the Administrative Agent and Lenders in accordance with Section
5.2(b); provided further, that, notwithstanding clause (i) above but subject
to the conditions set forth in clause (ii) above and the preceding proviso, the Borrower may
make Investments in any fiscal year in an aggregate amount up to $10,000,000 (or, with the
consent of the Administrative Agent, $20,000,000) if (i) after giving effect to any
Investment which would cause the aggregate Investments for such fiscal year to exceed
$5,000,000, Borrowing Availability shall exceed $75,000,000 and (ii) the Consolidated Fixed
Charge Coverage Ratio for the most recently completed period of four consecutive fiscal
quarters for which financial statements and a Ratio and Compliance Certificate have been
delivered is at least 1.00 to 1.0.

          11. Amendment to Section 6.9. Section 6.9(a) of the Term Loan Agreement is hereby
amended by deleting the parenthetical “(excluding Feralloy-Wheeling Specialty Processing Co.)” and
inserting in lieu thereof the following:

          “(excluding Feralloy-Wheeling Specialty Processing Co. and the Coke Plant Joint
Venture)”

          12. Amendment to Section 6.19. Section 6.19 of the Term Loan Agreement is hereby
amended by deleting existing Section 6.19 in its entirety and substituting in lieu thereof the
following:

     6.19 Restriction on Facilitation of Indebtedness. To the extent the Coke Plant
Joint Venture is consummated, vote for, consent to, or take any other action to facilitate
the incurrence by the Coke Plant Joint Venture of secured or unsecured Indebtedness for
borrowed money in an outstanding principal amount in excess of $35,000,000 at any time
(inclusive of Indebtedness owing to any Group Member or SNA but exclusive of any loans made
by any Group Member with respect to Deficiency Contributions as described in the provision
of Section 6.8(j) hereof).

          13. Schedule 5.2(a). The Credit Agreement is hereby amended by including as Schedule
5.2(a) thereto Schedule A to this Amendment.

          14. Schedule 6.7. The Credit Agreement is hereby amended by replacing Schedule 6.7 in
its entirety with Schedule B to this Amendment.

 

 

9

          15. Consent to Mortgage Amendments. In accordance with Section 11.2 of the Security
Agreement, the Lenders and the Federal Guarantor hereby consent to the approval by the
Administrative Agent of an amendment to Section 8 and Section 10 of each Mortgage for the purpose
of deleting the word “expressly” therefrom.

          16. Consent to Release of West Virginia Coke Production Plant Mortgage. In the event
the Coke Plant Joint Venture is consummated, the Lenders and the Federal Guarantor hereby consent
to the release and termination of the Mortgage encumbering the West Virginia Coke Production Plant
and the release and termination of liens under any Security Documents encumbering the assets to be
transferred to the Coke Plant Joint Venture, and hereby authorize the Administrative Agent and the
Collateral Agent to take any action requested by the Borrower to evidence such release and
termination.

          17. Consent to Release of Ohio Pump House Mortgage. In the event the Coke Plant Joint
Venture is consummated, the Lenders and the Federal Guarantor hereby consent to the release and
termination of the Mortgage encumbering the Ohio Pump House and the release and termination of
liens under any Security Documents encumbering the assets to be transferred to the Coke Plant Joint
Venture, and hereby authorize the Administrative Agent and the Collateral Agent to take any action
requested by the Borrower to evidence such release and termination.

          18. Conditions to Effectiveness. This Amendment shall become effective as of and on
the date (such date, the “Third Amendment Effective Date”) on which the Administrative
Agent shall have received the following:

     (a) counterparts hereof duly executed by Holdings, the Borrower, the Administrative
Agent, the Required Lenders and the Federal Guarantor;

     (b) such corporate resolutions, incumbency certificates and other authorizations as the
Administrative Agent may reasonably request; and

     (c) to the extent invoiced, payment or reimbursement of all out-of-pocket expenses of
the Administrative Agent incurred in connection with this Amendment, including the
reasonable fees, charges and disbursements of respective counsel for the Administrative
Agent and the Federal Guarantor.

          19. Representations and Warranties; No Default. Each of Holdings and the Borrower
hereby confirms that after giving effect to this Amendment each of the representations and
warranties set forth in the Loan Documents is true and correct. Each of Holdings and the Borrower
represents and warrants that, after giving effect to this Amendment, no Default or Event of Default
has occurred and is continuing.

          20. No Change. Except as expressly provided herein, no term or provision of the Term
Loan Agreement shall be amended, modified, supplemented or waived, and each term and provision of
the Term Loan Agreement shall remain in full force and effect.

 

 

10

          21. Counterparts. This Amendment may be executed by the parties hereto in any number
of separate counterparts, and all of said counterparts taken together shall be deemed to constitute
one and the same instrument.

          22. Governing Law. This Amendment and the rights and obligations of the parties
hereunder shall be governed by, and construed and interpreted in accordance with, the laws of the
State of New York.

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	WHEELING-PITTSBURGH CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	   /s/ Paul J. Mooney	 	 
	 

	 	 	 	 

Name: Paul J. Mooney
	 	 
	 

	 	 	 	Title: Executive Vice President & CFO	 	 

	 	 	 	 	 	 	 
	 	 	WHEELING-PITTSBURGH STEEL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	   /s/ M. P. DiClemente	 	 
	 

	 	 	 	 

Name: Michael P. DiClemente
	 	 
	 

	 	 	 	Title: Treasurer	 	 

	 	 	 	 	 
	 	 	ROYAL BANK OF CANADA, as Administrative
	 	 	Agent

	 	 	 	 	 	 	 
	 

	 	By:
	 	    /s/ David Wheatley	 	 
	 

	 	 	 	 

Name: David Wheatley
	 	 
	 

	 	 	 	Title: Manager, Agency	 	 

	 	 	 	 	 
	 	 	EMERGENCY STEEL LOAN GUARANTEE BOARD, as Federal
	 	 	Guarantor

	 	 	 	 	 	 	 
	 

	 	By:
	 	   /s/ Marguerite S. Owen	 	 
	 

	 	 	 	 

Name: Marguerite S. Owen
	 	 
	 

	 	 	 	Title: General Counsel	 	 

Signature Page to the Third Amendment to the Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	SIGNATURE PAGE TO THE THIRD AMENDMENT, DATED AS OF
SEPTEMBER 29, 2005 TO THE TERM LOAN AGREEMENT, DATED
AS OF JULY 31, 2003, AMONG WHEELING-PITTSBURGH
CORPORATION, WHEELING-PITTSBURGH STEEL CORPORATION,
THE LENDERS FROM TIME TO TIME PARTIES THERETO, ROYAL
BANK OF CANADA, AS ADMINISTRATIVE AGENT, THE
EMERGENCY STEEL LOAN GUARANTEE BOARD, THE WEST
VIRGINIA HOUSING DEVELOPMENT FUND AND THE OTHER
AGENTS PARTIES THERETO.

	 	 	 	 	 
	 	 	NAME OF INSTITUTION:
	 
	 	 	 	 
	 	 	AUSTRALIA AND NEW ZEALAND BANKING

     GROUP LIMITED

	 	 	 	 	 	 	 
	 

	 	By:
	 	    /s/ John W. Wade	 	 
	 

	 	 	 	 

Name: John W. Wade
	 	 
	 

	 	 	 	Title: Director	 	 

Signature Page to the Third Amendment to the Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	SIGNATURE PAGE TO THE THIRD AMENDMENT, DATED AS OF
SEPTEMBER 29, 2005 TO THE TERM LOAN AGREEMENT, DATED
AS OF JULY 31, 2003, AMONG WHEELING-PITTSBURGH
CORPORATION, WHEELING-PITTSBURGH STEEL CORPORATION,
THE LENDERS FROM TIME TO TIME PARTIES THERETO, ROYAL
BANK OF CANADA, AS ADMINISTRATIVE AGENT, THE
EMERGENCY STEEL LOAN GUARANTEE BOARD, THE WEST
VIRGINIA HOUSING DEVELOPMENT FUND AND THE OTHER
AGENTS PARTIES THERETO.

	 	 	 	 	 	 	 
	 	 	NAME OF INSTITUTION:	 	 
	 
	 	 	 	 	 	 
	 	 	LLOYDS TSB BANK PLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	    /s/ Gary Staines	 	 
	 

	 	 	 	 

Name: Gary Staines
	 	 
	 

	 	 	 	Title: Vice President, Structured Finance	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	   /s/ Michelle White	 	 
	 

	 	 	 	 

Name: Michelle White
	 	 
	 

	 	 	 	Title: Assistant Vice President,	 	 
	 

	 	 	 	      Structured Finance	 	 

Signature Page to the Third Amendment to the Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	SIGNATURE PAGE TO THE THIRD AMENDMENT, DATED AS OF
SEPTEMBER 29, 2005 TO THE TERM LOAN AGREEMENT, DATED
AS OF JULY 31, 2003, AMONG WHEELING-PITTSBURGH
CORPORATION, WHEELING-PITTSBURGH STEEL CORPORATION,
THE LENDERS FROM TIME TO TIME PARTIES THERETO, ROYAL
BANK OF CANADA, AS ADMINISTRATIVE AGENT, THE
EMERGENCY STEEL LOAN GUARANTEE BOARD, THE WEST
VIRGINIA HOUSING DEVELOPMENT FUND AND THE OTHER
AGENTS PARTIES THERETO.

	 	 	 	 	 	 	 
	 	 	NAME OF INSTITUTION:	 	 
	 
	 	 	 	 	 	 
	 	 	J.P. Morgan Chase Bank, NA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	   /s/ Paul Weybrecht	 	 
	 

	 	 	 	 

Name: Paul Weybrecht
	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature Page to the Third Amendment to the Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	SIGNATURE PAGE TO THE THIRD AMENDMENT, DATED AS OF
SEPTEMBER 29, 2005 TO THE TERM LOAN AGREEMENT, DATED
AS OF JULY 31, 2003, AMONG WHEELING-PITTSBURGH
CORPORATION, WHEELING-PITTSBURGH STEEL CORPORATION,
THE LENDERS FROM TIME TO TIME PARTIES THERETO, ROYAL
BANK OF CANADA, AS ADMINISTRATIVE AGENT, THE
EMERGENCY STEEL LOAN GUARANTEE BOARD, THE WEST
VIRGINIA HOUSING DEVELOPMENT FUND AND THE OTHER
AGENTS PARTIES THERETO.
	 
	 	 	 	 
	 	 	NAME OF INSTITUTION:
	 
	 	 	 	 
	 	 	ALLIED IRISH BANKS, PLC

	 	 	 	 	 	 	 
	 

	 	By:
	 	   /s/ Joseph S. Augustine	 	 
	 

	 	 	 	 

Name: Joseph S. Augustine
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	   /s/ Margaret Brennan	 	 
	 

	 	 	 	 

Name: Margaret Brennan
	 	 
	 

	 	 	 	Title: Senior Vice President	 	 

Signature Page to the Third Amendment to the Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	SIGNATURE PAGE TO THE THIRD AMENDMENT, DATED AS OF
SEPTEMBER 29, 2005 TO THE TERM LOAN AGREEMENT, DATED
AS OF JULY 31, 2003, AMONG WHEELING-PITTSBURGH
CORPORATION, WHEELING-PITTSBURGH STEEL CORPORATION,
THE LENDERS FROM TIME TO TIME PARTIES THERETO, ROYAL
BANK OF CANADA, AS ADMINISTRATIVE AGENT, THE
EMERGENCY STEEL LOAN GUARANTEE BOARD, THE WEST
VIRGINIA HOUSING DEVELOPMENT FUND AND THE OTHER
AGENTS PARTIES THERETO.
	 
	 	 	 	 
	 	 	NAME OF INSTITUTION:
	 
	 	 	 	 
	 	 	KBC BANK N.V.

	 	 	 	 	 	 	 
	 

	 	By:
	 	    /s/ Robert M.
Surdam, Jr.	 	 
	 

	 	 	 	 

Name: Robert M. Surdam, Jr.
	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	    /s/ Robert Snauffer	 	 
	 

	 	 	 	 

Name: Robert Snauffer
	 	 
	 

	 	 	 	Title: First Vice President	 	 

Signature Page to the Third Amendment to the Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	SIGNATURE PAGE TO THE THIRD AMENDMENT, DATED AS OF
SEPTEMBER 29, 2005 TO THE TERM LOAN AGREEMENT, DATED
AS OF JULY 31, 2003, AMONG WHEELING-PITTSBURGH
CORPORATION, WHEELING-PITTSBURGH STEEL CORPORATION,
THE LENDERS FROM TIME TO TIME PARTIES THERETO, ROYAL
BANK OF CANADA, AS ADMINISTRATIVE AGENT, THE
EMERGENCY STEEL LOAN GUARANTEE BOARD, THE WEST
VIRGINIA HOUSING DEVELOPMENT FUND AND THE OTHER
AGENTS PARTIES THERETO.
	 
	 	 	 	 
	 	 	NAME OF INSTITUTION:
	 
	 	 	 	 
	 	 	US Bank National Association

	 	 	 	 	 	 	 
	 

	 	By:
	 	    /s/ Jeffrey A. Kessler	 	 
	 

	 	 	 	 

Name: Jeffrey A. Kessler
	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature Page to the Third Amendment to the Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	SIGNATURE PAGE TO THE THIRD AMENDMENT, DATED AS OF
SEPTEMBER 29, 2005 TO THE TERM LOAN AGREEMENT, DATED
AS OF JULY 31, 2003, AMONG WHEELING-PITTSBURGH
CORPORATION, WHEELING-PITTSBURGH STEEL CORPORATION,
THE LENDERS FROM TIME TO TIME PARTIES THERETO, ROYAL
BANK OF CANADA, AS ADMINISTRATIVE AGENT, THE
EMERGENCY STEEL LOAN GUARANTEE BOARD, THE WEST
VIRGINIA HOUSING DEVELOPMENT FUND AND THE OTHER
AGENTS PARTIES THERETO.
	 
	 	 	 	 
	 	 	NAME OF INSTITUTION:
	 
	 	 	 	 
	 	 	Royal Bank of Canada

	 	 	 	 	 	 	 
	 

	 	By:
	 	    /s/ Dustin Craven	 	 
	 

	 	 	 	 

Name: Dustin Craven
	 	 
	 

	 	 	 	Title: Attorney-In-Fact	 	 

Signature Page to the Third Amendment to the Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	SIGNATURE PAGE TO THE THIRD AMENDMENT, DATED AS OF
SEPTEMBER 29, 2005 TO THE TERM LOAN AGREEMENT, DATED
AS OF JULY 31, 2003, AMONG WHEELING-PITTSBURGH
CORPORATION, WHEELING-PITTSBURGH STEEL CORPORATION,
THE LENDERS FROM TIME TO TIME PARTIES THERETO, ROYAL
BANK OF CANADA, AS ADMINISTRATIVE AGENT, THE
EMERGENCY STEEL LOAN GUARANTEE BOARD, THE WEST
VIRGINIA HOUSING DEVELOPMENT FUND AND THE OTHER
AGENTS PARTIES THERETO.
	 
	 	 	 	 
	 	 	NAME OF INSTITUTION:
	 
	 	 	 	 
	 	 	Fleet Capital Corporation

	 	 	 	 	 	 	 
	 

	 	By:
	 	    /s/ Elizabeth Brandt	 	 
	 

	 	 	 	 

Name: Elizabeth Brandt
	 	 
	 

	 	 	 	Title: Vice President	 	 

Signature Page to the Third Amendment to the Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	SIGNATURE PAGE TO THE THIRD AMENDMENT, DATED AS OF
SEPTEMBER 29, 2005 TO THE TERM LOAN AGREEMENT, DATED
AS OF JULY 31, 2003, AMONG WHEELING-PITTSBURGH
CORPORATION, WHEELING-PITTSBURGH STEEL CORPORATION,
THE LENDERS FROM TIME TO TIME PARTIES THERETO, ROYAL
BANK OF CANADA, AS ADMINISTRATIVE AGENT, THE
EMERGENCY STEEL LOAN GUARANTEE BOARD, THE WEST
VIRGINIA HOUSING DEVELOPMENT FUND AND THE OTHER
AGENTS PARTIES THERETO.
	 
	 	 	 	 
	 	 	NAME OF INSTITUTION:
	 
	 	 	 	 
	 	 	BANK HAPOALIM B.M.

	 	 	 	 	 	 	 
	 

	 	By:
	 	   /s/ James P. Surless
	 	   /s/ Charles McLaughlin
	 	 	 	 	 
	 

	 	 	 	Name: James P. Surless
	 	Charles McLaughlin
	 

	 	 	 	Title: Vice President
	 	Senior Vice President

Signature Page to the Third Amendment to the Term Loan Agreement

 

 

	 	 	 	 	 
	 	 	SIGNATURE PAGE TO THE THIRD AMENDMENT, DATED AS OF
SEPTEMBER 29, 2005 TO THE TERM LOAN AGREEMENT, DATED
AS OF JULY 31, 2003, AMONG WHEELING-PITTSBURGH
CORPORATION, WHEELING-PITTSBURGH STEEL CORPORATION,
THE LENDERS FROM TIME TO TIME PARTIES THERETO, ROYAL
BANK OF CANADA, AS ADMINISTRATIVE AGENT, THE
EMERGENCY STEEL LOAN GUARANTEE BOARD, THE WEST
VIRGINIA HOUSING DEVELOPMENT FUND AND THE OTHER
AGENTS PARTIES THERETO.
	 
	 	 	 	 
	 	 	NAME OF INSTITUTION:
	 
	 	 	 	 
	 	 	BAYERISCHE LANDESBANK, Cayman Islands Branch

	 	 	 	 	 	 	 
	 

	 	By:
	 	    /s/ Dietmar Rieg	 	 
	 

	 	 	 	 

Name: Dietmar Rieg

Title: Senior Vice President
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	    /s/ Norman McClave	 	 
	 

	 	 	 	 

Name: Norman McClave
	 	 
	 

	 	 	 	Title: First Vice President	 	 

Signature Page to the Third Amendment to the Term Loan Agreement

[Schedules have been omitted and will be furnished upon request.]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]