Document:

Form of Participant Grant and Agreement dated March 10, 2008

 Exhibit 10(b) 
 CLEVELAND-CLIFFS INC 
 2008 PARTICIPANT GRANT AND AGREEMENT 
 UNDER THE 
 2007 INCENTIVE EQUITY PLAN

 WHEREAS, on March 13, 2007 the Board of Directors (“Board”) of Cleveland-Cliffs Inc. an Ohio
corporation (“Company”) (the term “Company” as used herein shall also include the Company’s consolidated Subsidiaries) approved the 2007 Incentive Equity Plan (“Plan”) of the Company and the shareholders of the
Company approved the Plan on July 27, 2007; and 
 WHEREAS, the Compensation and Organization Committee
(“Committee”) of the Board has been appointed to administer the Plan; and 
 WHEREAS,
                                         
        (“Participant”) is an employee of the Company or of a Subsidiary of the Company; and 
 WHEREAS, on March 10, 2008 (“Date of Grant”) the Committee authorized the granting to the Participant of
                                         
        (            ) Performance Shares and an additional
                                         
        (            ) Restricted share units covering the incentive period commencing January 1, 2008 and ending December 31, 2010
(“Incentive Period”) under the Plan; and 
 WHEREAS, the Committee has authorized the execution of a Participant
Grant and Agreement (“Agreement”) in the form hereof. 
 NOW, THEREFORE, in consideration of the mutual covenants
hereinafter set forth, the Participant and Company agree as follows: 
  

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 ARTICLE 1. 
 Definitions 
 All terms used herein with initial capital letters shall have
the meanings assigned to them in the WHEREAS clauses or the Plan and the following additional terms, when used herein with initial capital letters, shall have the following meanings: 
 1.1    “Free Cash Flow” shall mean the Company’s revenues minus its expenses, its taxes, its
investments in the operations of its business, and its expenditures for working capital, as more particularly described on attached Exhibit D. 
 1.2    “Market Value Price” shall mean the latest available closing price of a Share of the Company and the latest available closing price per share of a common share of each of
the entities in the Peer Group, as the case may be, on the New York Stock Exchange or other recognized market if the stock does not trade on the New York Stock Exchange at the relevant time. 
 1.3    “Peer Group” shall mean the group of companies, as more particularly set forth on attached
Exhibit A, against which the Relative Total Shareholder Return of the Company is measured over the Incentive Period and shall mean the S&P Metals ETF as defined in Section 1.8 hereof as a replacement of each and every company listed on
Exhibit A that is excluded from the Peer Group during the Incentive Period as described on Exhibit A. 
 1.4    “Performance Objectives” shall mean for the Incentive Period the target objectives of the Company of the Relative Total Shareholder Return and Free Cash Flow goals established by the Committee and
reported to the Board, as more particularly set forth on attached Exhibit B. 
  

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 1.5    “Performance Shares Earned” shall mean the
number of Shares of the Company (or cash equivalent) earned by a Participant following the conclusion of an Incentive Period in which one of Company Performance Objectives was met at the “Threshold” level or a higher level. 
 1.6    “Relative Total Shareholder Return” shall mean for the Incentive Period the Total Shareholder
Return of the Company compared to the Total Shareholder Return of the Peer Group, as more particularly set forth on attached Exhibit C. 
 1.7    “Share Ownership Guidelines” shall mean the Cleveland-Cliffs Inc Directors’ and Officers’ Share Ownership Guidelines, as amended from time to time. 
 1.8    “S&P Metals ETF” shall mean the SPDR S&P Metals & Minerals ETF (XME) managed
by State Street Global Advisors but with Cleveland-Cliffs Inc taken out. 
 1.9    “Total
Shareholder Return” shall mean for the Incentive Period the cumulative return to shareholders of the Company and to the shareholders of each of the entities in the Peer Group during the Incentive Period, measured by the change in Market
Value Price per share of a Share of the Company plus dividends (or other distributions, excluding franking credits) reinvested over the Incentive Period and the change in the Market Value Price per share of the common share of each of the entities
in the Peer Group plus dividends (or other distributions, excluding franking credits) reinvested over the Incentive Period, determined on the last business day of the Incentive Period compared to a base measured by the average Market Value Price per
share of a Share of the Company and of a common share of each of the entities in the Peer Group on the last business day of the year immediately preceding the Incentive Period. Dividends (or other distributions, excluding franking credits) per share
are assumed to be reinvested in the applicable stock on the last business day of the quarter during which they are paid at the then 
  

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Market Value Price per share, resulting in a fractionally higher number of shares owned at the market price. 
 ARTICLE 2. 
 Grant and Terms of
Performance Shares 
 2.1    Grant of Performance Shares. Pursuant to the Plan, the
Company, by action of the Committee, hereby grants to the Participant the number of Performance Shares as specified in the Fourth WHEREAS clause of this Agreement, without dividend equivalents, effective as of the Date of Grant. 
 2.2     Issuance of Performance Shares. The Performance Shares covered by this Agreement shall
only result in the issuance of Shares (or cash or a combination of Shares and cash, as decided by the Committee in its sole discretion), after the completion of the Incentive Period and only if such Performance Shares are earned as provided in
Section 2.3 of this Article 2. 
 2.3     Performance Shares Earned. Performance
Shares Earned, if any, shall be based upon the degree of achievement of the Company Performance Objectives, all as more particularly set forth in Exhibit B, with actual Performance Shares Earned interpolated between the performance levels shown on
Exhibit B. In no event, shall any Performance Shares be earned for actual achievement by the Company in excess of the allowable maximum as established under the Performance Objectives. 
 2.4     Calculation of Payout of Performance Shares. The Performance Shares granted shall be earned as
Performance Shares Earned based on the degree of achievement of the Performance Objectives established for the Incentive Period. The percentage level of achievement determined for each Performance Objective shall be multiplied by the number of

  

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Performance Shares granted to determine the actual number of Performance Shares Earned. The calculation as to whether the Company has met or exceeded the
Company Performance Objectives shall be determined in accordance with this Agreement. 
 2.5    Payment of Performance Shares. 
 (a) Payment of Performance Shares Earned
shall be made in the form of Shares (or cash or a combination of Shares and cash, as decided by the Committee in its sole discretion), and shall be paid after the determination by the Committee of the level of attainment of the Company Performance
Objectives (the calculation of which shall have been previously reviewed by an independent accounting professional). Notwithstanding the foregoing, no Performance Shares granted hereunder, may be paid in cash in lieu of Shares to any Participant who
is subject to the Share Ownership Guidelines unless and until such Participant is either in compliance with, or no longer subject to, such Share Ownership Guidelines, provided, however, that the Committee may withhold Shares to the extent necessary
to satisfy federal, state or local income tax withholding requirements, as described in Section 5.2. In addition, the Committee may restrict 50% of the Shares to be issued in satisfaction of the total Performance Shares Earned, before income
tax withholding, so that they cannot be sold by Participant unless immediately after such sale the Participant is in compliance with the Share Ownership Guidelines that are applicable to the Participant at the time of sale. 
 (b) Any payment of Performance Shares Earned to a deceased Participant shall be paid to the beneficiary designated by the Participant on
the Designation of Death Beneficiary attached as Exhibit E and filed with the Company. If no such beneficiary has been designated or survives the Participant, payment shall be made to the estate of a Participant. A 

  

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beneficiary designation may be changed or revoked by a Participant at any time, provided the change or revocation is filed with the Company. 
 (c) Prior to payment, the Company shall only have an unfunded and unsecured obligation to make payment of Performance Shares Earned to
the Participant. The Performance Shares covered by this Agreement that have not yet been earned as Performance Shares Earned are not transferable other than by completion of the Designation of Death Beneficiary attached as Exhibit E or pursuant to
the laws of descent and distribution. 
  

	 	2.6	 Death, Disability, Retirement, or Other. 

 (a) With respect to Performance Shares granted to a Participant whose employment is terminated because of death, Disability, Retirement, or is terminated by the Company without Cause, the
Participant shall receive as Performance Shares Earned the number of Performance Shares as is then determined under Section 2.4 at the end of such Incentive Period, prorated based upon the number of months between January 1, 2008 and the
date the Participant ceased to be employed by the Company compared to the thirty-six (36) months in the Incentive Period. 
 (b) In the event a Participant voluntarily terminates employment prior to December 31, 2010 or is terminated by the Company with Cause prior to the date of payment of Performance Shares Earned, the Participant shall forfeit all right
to any Performance Shares that would have been earned under this Agreement. 
 ARTICLE 3. 
 Grant and Terms of Restricted Share Units 
 3.1    Grant of Restricted Share Units. Pursuant to the Plan, the Company hereby grants to the Participant the number of Restricted Share Units as specified in the Fourth 

  

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WHEREAS clause of this Agreement, without dividend equivalents, effective as of the Date of Grant. 
 3.2 Condition of Payment. The Restricted Share Units covered by this Agreement shall only result in the payment in Shares
of the Company equal in number to the Restricted Share Units if the Participant remains in the employ of the Company or a Subsidiary throughout the Incentive Period. 
 3.3 Payment of Restricted Share Units. 
 (a) Payment of
Restricted Share Units shall be made in the form of Shares and shall be paid at the same time as the payment of Performance Shares Earned pursuant to Section 2.5(a), provided, however, in the event no Performance Shares are
earned, then the Restricted Share Units shall be paid in Shares at the time the Performance Shares would normally have been paid. The Committee may restrict 50% of the Shares to be issued in satisfaction of the total Restricted Share Units, before
income tax withholding, so that they cannot be sold by Participant unless immediately after such sale the Participant is in compliance with the Share Ownership Guidelines that are applicable to the Participant at the time of sale. 
 (b) Any payment of Restricted Share Units to a deceased Participant shall be paid to the beneficiary designated by the Participant on the
Designation of Death Beneficiary attached as Exhibit E and filed with the Company. If no such beneficiary has been designated or survives the Participant, payment shall be made to the estate of a Participant. A beneficiary designation may be changed
or revoked by a Participant at any time, provided the change or revocation is filed with the Company. 
 (c) Prior to
payment, the Company shall only have an unfunded and unsecured obligation to make payment of Restricted Share Units to the Participant. The 

  

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Restricted Share Units covered by this Agreement that have not yet been earned are not transferable other than by completion of the Designation of Death
Beneficiary attached as Exhibit E or pursuant to the laws of descent and distribution. 
 3.4    Death, Disability, Retirement or Other. With respect to Restricted Share Units granted to a Participant whose employment is terminated because of death, Disability, Retirement, or is terminated by
the Company without Cause during the Incentive Period, the Participant shall receive the number of Shares as calculated in Section 3.2, prorated based upon the number of months between January 1, 2008 and the date the Participant ceased to
be employed by the Company compared to the thirty-six (36) months in the Incentive Period. 
 ARTICLE 4. 
 Other Terms Common to Restricted Share Units and Performance Shares 
 4.1    Forfeiture. 
 (a) A
Participant shall not render services for any organization or engage directly or indirectly in any business which is a competitor of the Company or any affiliate of the Company, or which organization or business is or plans to become prejudicial to
or in conflict with the business interests of the Company or any affiliate of the Company. 
 (b) Failure to comply with
subsection (a) above will cause a Participant to forfeit the right to Performance Shares and Restricted Share Units and require the Participant to reimburse the Company for the taxable income received or deferred on Performance Shares that
become payable to the Participant and on Restricted Share Units that have been paid out in Shares within the 90-day period preceding the Participant’s termination of employment. 
 (c) Failure of the Participant to repay to the Company the amount to be reimbursed in subsection (b) above within three days of
termination of employment will result in 

  

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the offset of said amount from the Participant’s account balance in the Company’s Voluntary Non-Qualified Deferred Compensation Plan (if
applicable) and/or from any accrued salary or vacation pay owed at the date of termination of employment or from future earnings payable by the Participant’s next employer. 
 4.2    Change in Control. In the event a Change in Control occurs, all Performance Shares granted to a
Participant for Incentive Periods which have not ended shall immediately become Performance Shares Earned on a one-to-one basis regardless of the Performance Objectives. All Performance Shares, if any, granted to a Participant for an Incentive
Period which ended before the Change in Control, will be deemed to be Performance Shares Earned to the extent and only to the extent that they became Performance Shares Earned as of the end of the Incentive Period based upon the Performance
Objectives for the Incentive Period. The value of all Performance Shares Earned, including ones for Incentive Periods which have already ended, shall be paid in cash based on the fair market value of the Shares determined on the date the Change in
Control occurs. Also, in the event of a Change in Control, all Restricted Share Units granted for all periods shall become nonforfeitable and shall be paid in cash based on the fair market value of an equivalent number of Shares determined on the
date the Change in Control occurs. All payments with respect to Performance Shares and Restricted Share Units shall be made within 10 days of the Change in Control. 
 ARTICLE 5. 
 General Provisions 
 5.1    Compliance with Law. The Company shall make reasonable efforts to comply with all applicable
federal and state securities laws; provided, however, notwithstanding any other provision of this Agreement, the Company shall not be obligated to issue any Shares 

  

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pursuant to this Agreement if the issuance or payment thereof would result in a violation of any such law. 
 5.2    Withholding Taxes. To the extent that the Company is required to withhold federal, state, local
or foreign taxes in connection with any payment of Performance Shares Earned or Restricted Share Units to a Participant under the Plan, and the amounts available to the Company for such withholding are insufficient, it shall be a condition to the
receipt of such payment of Performance Shares Earned or Restricted Share Units or the realization of such benefit that the Participant make arrangements satisfactory to the Company for payment of the balance of such taxes required to be withheld. If
necessary, the Committee may require relinquishment of a portion of such Performance Shares Earned or such Restricted Share Units. The Participant may elect to satisfy all or any part of any such withholding obligation by surrendering to the Company
a portion of the Shares that are issued or transferred hereunder, and the Shares so surrendered by the Participant shall be credited against any such withholding obligation at the Market Value Price per share of such Shares on the date of such
surrender. In no event, however, shall the Company accept Shares for payment of taxes in excess of required tax withholding rates, except that, in the discretion of the Committee, a Participant or such other person may surrender Shares owned for
more than six months to satisfy any tax obligation resulting from such transaction. 
 5.3    Continuous Employment. For purposes of this Agreement, the continuous employment of the Participant with the Company shall not be deemed to have been interrupted, and the Participant shall not be
deemed to have ceased to be an employee of the Company, by reason of the transfer of his employment among the Company and its Subsidiaries or an approved leave of absence. 
  

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 5.4    Relation to Other Benefits. Any economic or
other benefit to the Participant under this Agreement or the Plan shall not be taken into account in determining any benefits to which the Participant may be entitled under any profit-sharing, retirement or other benefit or compensation plan
maintained by the Company or a Subsidiary and shall not affect the amount of any life insurance coverage available to any beneficiary under any life insurance plan covering employees of the Company or a Subsidiary. 
 5.5    Agreement Subject to Plan. The Restricted Share Units and Performance Shares granted under this
Agreement and all of the terms and conditions hereof are subject to all of the terms and conditions of the Plan, a copy of which is available upon request. 
 5.6    Amendments. The Plan and this Agreement can be amended at any time by the Company. Any amendment to the Plan shall be deemed to be an amendment to this
Agreement to the extent that the amendment is applicable hereto. Except for amendments necessary to bring the Plan and this Agreement into compliance with current law including Internal Revenue Code section 409A, no amendment to either the Plan or
this Agreement shall adversely affect the rights of the Participant under this Agreement without the Participant’s consent. 
 5.8    Severability. In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed
to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable. 
 5.9    Governing Law. This Agreement shall be construed and governed in accordance with the laws of the State of Ohio. 
 This Agreement is executed as of the Date of Grant. 
  

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		 	 CLEVELAND-CLIFFS INC
 (“Company”)

		
		 	  

		 	 Joseph A. Carrabba
 Chairman and Chief Executive Officer

  
  
 The undersigned hereby acknowledges receipt of an executed original of this Participant Grant and Agreement and accepts the Performance
Shares and Restricted Share Units granted hereunder on the terms and conditions set forth herein and in the Plan. 
  

					
		 	 Participant

		
		 	  

			
		 	 Print Name:
	 	  

  

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 EXHIBITS 
  

			
		
	Exhibit A	  	Peer Group
		
	Exhibit B	  	Performance Objectives
		
	Exhibit C	  	Relative Total Shareholder Return
		
	Exhibit D	  	Free Cash Flow
		
	Exhibit E	  	Beneficiary Designation

  

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 Exhibit A 
 PEER GROUP 
 (2008-2010) 
 Massey Energy Corp 
 Consol Energy Inc 
 Peabody Energy Corp 
 Foundation Coal Holdings Inc 
 Arch Coal Inc 
 Carpenter Technology Corp 
 Steel
Dynamics Inc 
 Quanex Corp 
 AK Steel Holding Corp 
 Commercial Metals Co 
 Worthington Inds Inc 
 Alcoa Inc 
 Nucor Corp 
 United States Steel Corp (New) 
 Reliance Steel & Aluminum Co

 Allegheny Technologies Inc 
 Freeport-McMoran Cooper &
Gold Inc 
 Usec Inc 
 The Peer Group of 18 companies shall not be adjusted within the Incentive Period, except to exclude companies which during the Incentive Period (a) cease to be publicly traded, or (b) have experienced a
major restructuring by reason of: (i) a Chapter 11 filing, or (ii) a spin-off of more than 50% of any such company’s assets. The S&P Metals ETF as defined in Paragraph 1.8 shall be substituted in place of the Peer Group companies
that are excluded pursuant to the foregoing sentence with a weighting of 1/18th times the number of Peer Group Companies that are so excluded.

 The value of the stock of a Peer Group company will be determined in accordance with the following: 
  

	 	1.	 If the stock is listed on an exchange in the U.S. or Canada, then the value on such exchange will be used; 

  

	 	2.	 Otherwise, if the stock is traded in the U.S. as an American Depositary Receipt, then the value of the ADR will be used; or 

  

	 	3.	 Otherwise, the value on the exchange in the country where the company is headquartered will be used. 

  

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 Exhibit B 
 PERFORMANCE OBJECTIVES 
 (2008-2010) 
 The target objectives of the Company are Relative Total Shareholder Return (share price plus reinvested dividends) and Free Cash Flow over the three-year Incentive Period from January 1,
2008 to December 31, 2010. Achievement of the Relative Total Shareholder Return objective shall be determined by the shareholder return of the Company relative to a predetermined group of steel, mining and metal companies. Achievement of the
Free Cash Flow objective shall be determined against a scale set forth in the Table Below: 
  

									
	 	 	 	 	Performance Level
	 Performance Factor
	 	 Weight
	 	 Threshold
	 	 Target
	 	 Maximum

	 Relative TSR
	 	50%	 	35th %tile	 	55th %tile	 	75th %tile
	 Payout For Relative TSR
	 		 	25%	 	50%	 	75%
					
	 3-Year Cumulative Free Cash Flow ($000s)
	 	50%	 	$1,004	 	$1,255	 	$1,506
	 Payout For Free Cash Flow
	 		 	25%	 	50%	 	75%
					
	 Total Payout If Achieve Level For Both Performance Factors
	 		 	50%	 	100%	 	150%

  

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 Exhibit C 
 RELATIVE TOTAL SHAREHOLDER RETURN 
 (2008-2010) 
 Relative Total Shareholder Return for the Incentive Period is calculated as follows: 
  

	 	1.	 The Total Shareholder Return as defined in Section 1.9 of the Agreement for the Incentive Period for the Company shall be compared to the Total Shareholder
Return for each of the entities within the Peer Group for the Incentive Period. The results shall be ranked to determine the Company’s Relative Total Shareholder Return percentile ranking compared to the Peer Group.

  

	 	2.	 The Company’s Relative Total Shareholder Return for the Incentive Period shall be compared to the Relative Total Shareholder Return Performance target range
established for the Incentive Period. 

  

	 	3.	 The Relative Total Shareholder Return performance target range has been established for the 2008-2010 Incentive Period as follows: 

 

			
	 Performance Level
	 	 2008-2010
 Relative Total Shareholder Return
 Percentile Ranking

		
	 Maximum
	 	75th Percentile
		
	 Target
	 	55th Percentile
		
	 Threshold
	 	35th Percentile

  

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 Exhibit D 
 FREE CASH FLOW 
 (2008-2010) 
 Free Cash Flow is calculated as follows: 
  

	 	1.	 Each year during the Incentive Period, the revenues of the Company determined on a consolidated basis shall be determined. 

  

	 	2.	 Each year during the Incentive Period, the operating expenses of the Company, determined on a consolidated basis, including taxes, shall be subtracted from the
revenues. 

  

	 	3.	 Each year during the Incentive Period, the Company’s net investment in its operations shall be subtracted from the amount determine in paragraph 2 above.

  

	 	4.	 Each year during the Incentive Period, the Company’s net expenditures for working capital shall be subtracted from the amount determined in paragraph 3
above. 

  

	 	5.	 The amounts determined in paragraph 4 above for each year during the Incentive Period shall be added together to determine the Cumulative Free Cash Flow of the
Company during the Incentive Period. 

 The Cumulative Free Cash Flow shall be adjusted by the Committee, if necessary, to
eliminate the impact of acquisitions and dispositions, borrowings, dividends, share repurchases, other financing expenditures, and other investing expenditures. 
  

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 GRANT YEAR 2008 
 Exhibit E 
 BENEFICIARY DESIGNATION 
 In accordance with the terms and conditions of the Cleveland-Cliffs Inc 2007 Incentive Equity Plan (“Plan”) and the 2008
Participant Grant and Agreement (“Agreement”), I hereby designate the person(s) indicated below as my beneficiary(ies) to receive any payments under the Plan and Agreement after my death. 
  

									
		  	 Name
	  	 	  		  	
		  	 Address
	  	 	  		  	
		  		  	 	  		  	
		  		  	 	  		  	

  

									
		  	Social Sec. Nos. of Beneficiary(ies)	  	 	  		  	
		  	Relationship(s)	  	 	  		  	
		  	Date(s) of Birth	  	 	  		  	

 In the event that the above-named beneficiary(ies) predecease(s) me, I hereby
designate the following person(s) as beneficiary(ies): 
  

									
		  	 Name
	  	 	  		  	
		  	 Address
	  	 	  		  	
		  		  	 	  		  	
		  		  	 	  		  	

  

									
		  	Social Sec. Nos. of Beneficiary(ies)	  	 	  		  	
		  	Relationship(s)	  	 	  		  	
		  	Date(s) of Birth	  	 	  		  	

 I hereby expressly revoke all prior designations of beneficiary(ies), reserve the
right to change the beneficiary(ies) herein designated and agree that the rights of said beneficiary(ies) shall be subject to the terms of the Plan and Agreement. In the event that there is no beneficiary living at the time of my death, I understand
that the payments under the Plan and Agreement will be paid to my estate. 
  

									
		 		 	
				
	 	 		 		 	 
	 Date
	 		 		 	(Signature)
		 		 	
				
		 		 		 	 
		 		 		 	(Print or type name)

  

 18Term Sheet for Second Amendment of Pellet Sale dated May 22, 2008

 Exhibit 10(c) 
 CONFIDENTIAL MATERIAL HAS BEEN 
 OMITTED AND FILED SEPARATELY WITH THE 

SECURITIES EXCHANGE COMMISSION. 
 ASTERISKS DENOTE SUCH OMISSIONS. 
 1 
 CONFIDENTIAL 
 Term Sheet 
 for Second Amendment of the 
 Pellet Sale and Purchase Agreement

 (“Term Sheet”) 
 May 22, 2008 
  

	 Parties: 
	The Cleveland-Cliffs Iron Company, Cliffs Mining Company, Northshore Mining Company, and Cliffs Sales Company (collectively, “Cliffs”) and Algoma Steel Inc. (“Algoma”).

  

	 Purpose: 
	Cliffs and Algoma wish to amend the terms of the Pellet Sale and Purchase Agreement of January 31, 2002, as amended (“Agreement”) with respect to the volume of iron ore pellets to be purchased
and sold thereunder for the years [*****], as well as the pricing of the iron ore pellets for the year [*****]. Cliffs and Algoma each acknowledge and agree that the Agreement shall be amended as set forth in this Term Sheet, and
further that, except as amended hereby, the Agreement is and shall remain in full force and effect. All capitalized terms not otherwise defined herein shall have the meaning(s) set forth in the Agreement. 

  

	 Volume: 
	For the year 2008, Cliffs shall supply to Algoma, and Algoma shall purchase from Cliffs, [*****] tons of Cliffs Pellets for use by Algoma in accordance with the terms of the Agreement. Notwithstanding
the foregoing, with respect to Algoma’s right to modify its 2008 Annual Requirements pursuant to Section 5(b) of the Agreement, such right of modification shall only be exercisable with respect to Algoma’s Annual Requirements up to
[*****] tons. 

 For the year 2009, Cliffs shall supply to Algoma, and Algoma shall purchase from Cliffs, [*****]
tons of Cliffs Pellets for use by Algoma in accordance with the terms of the Agreement. Notwithstanding the foregoing, with respect to Algoma’s right to modify its 2009 Annual Requirements pursuant to Section 5(b) of the Agreement, such
right of modification shall only be exercisable with respect to Algoma’s Annual Requirements up to [*****] tons. 
  

	 Price: 
	 For the year 2008, the price for Cliffs Pellets purchased by Algoma shall be as follows: (i) [*****] tons of Cliffs Pellets at an estimated price of: [*****] per ton (which at the
expected natural iron content of [*****] for Tilden Hem Flux Pellets is [*****] per iron unit and which at the expected natural iron content of [*****] for Tilden Mag Flux Pellets is [*****] per iron unit); and
(ii) [*****] tons of Cliffs Pellets at an estimated price of: [*****] per ton (which at the expected natural iron content of 

 CONFIDENTIAL MATERIAL HAS BEEN 
 OMITTED AND FILED SEPARATELY WITH THE 
 SECURITIES EXCHANGE COMMISSION.

 ASTERISKS DENOTE SUCH OMISSIONS. 
 2 
  

	 	 
[*****] for Tilden Hem Flux Pellets is [*****] per iron unit and which at the expected natural iron content of [*****] for Tilden Mag
Flux Pellets is [*****] per iron unit). The foregoing prices shall be applicable to all f.o.b. delivery points specified in Section 8(c) of the Agreement. The foregoing prices for the year 2008 are final and are not subject to
modification by any provision contained in Section 6 of the Agreement. 

 For the year 2009, the price for all Cliffs
Pellets purchased by Algoma shall be determined in accordance with the pricing provisions set forth in the Agreement. 
  

	 Payment Terms: 
	The payment terms in the Agreement shall remain unchanged except as follows: 

 For
the year 2008: (i) [*****] tons of Cliffs Pellets delivered to Algoma in [*****] shall be invoiced by Cliffs, and purchased by Algoma, at the price of [*****] per iron unit (Tilden Hem Flux Pellets) or [*****] per
iron unit (Tilden Mag Flux Pellets) as applicable, (ii) the first [*****] tons of Cliffs Pellets delivered to Algoma in each of the calendar months beginning [*****] shall be invoiced by Cliffs, and purchased by Algoma, at the
price of [*****] per iron unit (Tilden Hem Flux Pellets) or [*****] per iron unit (Tilden Mag Flux Pellets) as applicable, and (iii) all other Cliffs Pellets delivered to Algoma during 2008 shall be invoiced by Cliffs, and
purchased by Algoma, at the price of [*****] per iron unit (Tilden Hem Flux Pellets) or [*****] per iron unit (Tilden Mag Flux Pellets) as applicable. Further, in the event Algoma has not shipped its entire nominated tonnage for
[*****], then Algoma shall pay Cliffs for the balance of such tonnage via wire transfer on [*****]. Further, on or before [*****]. 
 For the year 2009: In the event Algoma has not shipped its entire nominated tonnage for [*****], then Algoma shall pay Cliffs for the balance of such tonnage via wire transfer [*****] and title to such
tonnage shall transfer to Algoma [*****]. Further, on or before [*****]. 

 CONFIDENTIAL MATERIAL HAS BEEN 
 OMITTED AND FILED SEPARATELY WITH THE 
 SECURITIES EXCHANGE COMMISSION.

 ASTERISKS DENOTE SUCH OMISSIONS. 
 3 
  

	 Price Re-opener: 
	Algoma and Cliffs each acknowledge and agree that the terms and provisions of this Term Sheet were negotiated in settlement of Algoma’s January 3, 2008 request for a price renegotiation pursuant to
Section 13 of the Agreement (and Algoma’s related March 3, 2008 request for arbitration pursuant of Section 15 of the Agreement) and that neither party shall have any further right to request a price renegotiation except in
accordance with Section 13 of the Agreement. Further, upon execution of this Term Sheet, Algoma shall immediately withdraw its March 3, 2008 request for arbitration. Algoma and Cliffs further acknowledge and agree that the terms and
provisions of this Term Sheet, as negotiated in full and final settlement of Algoma’s January 3, 2008 request for a price renegotiation, which is settled hereby with prejudice but is without prejudice to either party’s right or
ability to request future price renegotiation at the times and in the manner specified in Section 13 of the Agreement. 

  

	 Definitive Contract: 
	Algoma and Cliffs each acknowledge and agree that once this Term Sheet is executed, the Agreement, as amended by this Term Sheet, shall govern the performance of the parties until such time as a separate
definitive written amendment to the Agreement, if any, is executed and delivered by the parties. 

  

									
	CLIFFS MINING COMPANY	 		 	ALGOMA STEEL INC.
					
	By:	 	/s/ W. Calfee	 		 	By:	 	/s/ V. Ciappetta
					
	Title:	 	Executive Vice President – Commercial	 		 	Title:	 	Vice President – Legal
					
	Date:	 	May 27, 2008	 		 	Date:	 	May 30, 2008
			
	NORTHSHORE MINING COMPANY	 		 	
					
	By:	 	/s/ W. Calfee	 		 		 	
					
	Title:	 	Executive Vice President – Commercial	 		 		 	
					
	Date:	 	May 27, 2008	 		 		 	

  
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 CONFIDENTIAL MATERIAL HAS BEEN 
 OMITTED AND FILED SEPARATELY WITH THE 
 SECURITIES EXCHANGE COMMISSION.

 ASTERISKS DENOTE SUCH OMISSIONS. 
 4 
  

			
	THE CLEVELAND-CLIFFS IRON COMPANY
		
	By:	 	/s/ D. B. Blake
		
	Title:	 	Vice President – Iron Ore
		
	Date:	 	5/23/08
	
	CLIFFS SALES COMPANY
		
	By:	 	/s/ W. Calfee
		
	Title:	 	Executive Vice President – Commercial
		
	Date:	 	May 27, 2008

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