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EXHIBIT 10.50
PELLET SALE AND PURCHASE AGREEMENT
THIS AGREEMENT, entered into, dated February 19, 2014 and effective as of January 1, 2014 (“Agreement”), by and among CLIFFS SALES COMPANY, an Ohio corporation (“Cliffs”) and AK STEEL CORPORATION, a Delaware corporation (“AK Steel”).
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WHEREAS, Cliffs desires to sell to AK Steel and AK Steel desires to purchase from Cliffs certain quantities of grades of iron ore pellets such grades of iron ore pellets, all upon the terms and subject to the conditions contained herein.
NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, Cliffs and AK Steel agree as follows:
Section 1 - Definitions.
The terms quoted in the above parentheses of the first introductory paragraph of this Agreement and the WHEREAS clause, other terms quoted throughout this Agreement, and the terms defined below in this Section 1 shall have the meanings assigned to them for purposes of this Agreement.  
(a)    “AK Steel Facilities” AK Steel’s facilities in Middletown, OH or Ashland, KY.
(b)    “Cliffs Pellets” shall mean Tilden Pellets and, beginning in 2015 Contract year, United Pellets, or at any time during the term of this Agreement, any other mutually agreeable pellets produced at a mine affiliated with Cliffs.
(c)    “Contract Year” shall be a calendar year commencing on January 1 and ending December 31 during the Term of this Agreement.
(d)    “Lower Lakes Docks” shall mean the Torco Dock located near Toledo, Ohio and the Kinder Morgan Dock located near Ashtabula, Ohio or other mutually agreeable dock(s).
(e)    The word “pellets”, as used herein, shall mean iron-bearing products obtained by the pelletizing of iron ore or iron ore concentrates, suitable for making iron in blast furnaces.  
(f)    “Shipping Season” shall mean generally March 25 through January 15 of the following year, but may be adjusted by the Army Corps of Engineers.
(g)    “Term” shall mean January 1, 2014 through and including December 31, 2023.
(h)    “Tilden Pellets” shall mean Tilden hematite flux pellets from the Tilden mine in Ishpeming, Michigan.
(i)    The word “ton”, as used herein, shall mean a gross ton of 2,240 pounds avoirdupois natural weight.  
(j)    “United Pellets” shall mean United Taconite partial flux pellets from the United Taconite mine in Eveleth, Minnesota.
Section 2. - Sale and Purchase/Tonnage.
During each of the Contract Years 2014 through 2023, and each Contract Year thereafter as long as this Agreement remains in effect, Cliffs shall sell and deliver to AK Steel and AK Steel shall purchase and receive from Cliffs and pay for a tonnage of pellets (“AK Steel’s Annual Pellet Tonnage”) which tonnage shall be equal to:

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(a)    For the Contract Year 2014, Cliffs shall sell and deliver to AK Steel, and AK Steel shall purchase and receive from Cliffs, and pay Cliffs for, a tonnage of Cliffs Pellets for use at AK Steel’s Facilities that is *** tons of Cliffs Pellets, as defined below.
(b)    For the Contract Year 2015, Cliffs shall sell and deliver to AK Steel, and AK Steel shall purchase and receive from Cliffs, and pay Cliffs for, a tonnage of Cliffs Pellets for use at AK Steel’s Facilities that is *** tons. 
(c)    For each of the eight (8) Contract Years 2016 through and including 2023, Cliffs shall sell and deliver to AK Steel, and AK Steel shall purchase and receive from Cliffs, and pay Cliffs for, a tonnage of Cliffs Pellets for use at AK Steel’s Facilities that is *** tons. 
Section 3. - Pellet Grades and Specifications
(a)    Both AK Steel and Cliffs recognize the preference is for the supply of Tilden Pellets.  Cliff may begin supplying AK Steel with United Pellets, or other mutually agreeable pellets, in the 2015 Contract Year.  The United Pellets, or other mutually agreeable pellets, shall be limited to *** of the Annual Nomination for such Contract Year and for the Contract Years thereafter for the remainder of the Term of the Agreement.  The parties shall mutually use commercially reasonable efforts to ensure that at any given time the United Pellets do not to exceed approximately *** of the total stockpiles of Cliffs Pellets located at the Lower Lakes Docks.  The pellet typical analysis for Tilden Pellets is attached hereto as Exhibit A.  The pellet typical analysis for United Pellets is attached hereto as Exhibit B.  
(b)    The Parties agree to develop mutually agreeable key quality performance metrics for the supply of Cliffs Pellets through the term of this Agreement.  The Parties will meet quarterly to discuss the key quality performance metrics as provided for in Exhibit A and Exhibit B, or other mutually agreeable pellets, as of the date entered into this Agreement and the progress with regard to the continuous improvement goals.
Section 4. - Notification and Nomination.
(a)    For each of the ten (10) Contract Years 2014 through and including 2023, AK Steel shall notify Cliffs in writing of AK Steel’s preliminary nomination on or before November 15 of the preceding year (“Preliminary Nomination”), which Preliminary Nomination shall be consistent with Sections 2(a), (b) and (c) above.  
(b)    As part of each Contract Years’ Preliminary Nomination, AK Steel shall provide to Cliffs the percentage of the annual tonnage to be delivered to each of the Lower Lakes Docks (“Preliminary Annual Dock Schedule”).  On or before August 1 of the then current Contract Year, AK Steel may, by written notification to Cliffs, adjust its Preliminary Annual Dock Schedule for the then current Contract Year by not more than *** up or down. After August 1 of a Contract Year AK Steel’s Preliminary Annual Dock Schedule, including any adjustments, shall be final (“Final Annual Dock Schedule”).
(c)    AK Steel may revise its Preliminary Nomination on or before the dates below, by the amounts set forth below, so long as the revised nominations are not less than the minimum tonnage and or greater than the maximum tonnage set forth in Sections 2(a), (b) and (c) above for each Contract Year.  
(d)    For each of the Contract Years 2014 through and including 2016, AK Steel shall have an option to nominate up to *** tons (“Optional Tonnage”) more than the maximum tonnage set forth in Sections 2(a), (b) and (c) above for such Contract Year which shall be included with its Preliminary Nomination on or before November 15 of the preceding year.  If AK Steel elects to take a portion of or all of the Optional Tonnage greater than the maximum tonnage 

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set forth above, then the maximum tonnage plus the Optional Tonnage shall be fixed and final for such Contract Year and the adjustment dates set forth below shall not be applicable.
(e)    With respect to each Preliminary Nomination for each Contract Year beginning with 2014, on or before *** of the then current Contract Year of the purchase and sale, AK Steel may, by written notification to Cliffs, adjust its Preliminary Nomination for the then current Contract Year by not more than *** up or down.
(i)    For example, for the 2014 Contract Year, on ***, 2014 AK Steel may adjust its Preliminary Nomination up or down by not more than ***.  AK Steel may then again adjust its Preliminary Nomination up or down by not more than *** on or before ***, 2014.  AK Steel may make a final adjustment to its Preliminary Nomination up or down by not more than *** on or before ***, 2014.
(f)    AK Steel shall be limited to *** adjustments to its Preliminary Nomination during a Contract Year.  AK Steel may not make any adjustments to its Preliminary Nomination after *** of any Contract Year, regardless of whether it has made one, two, three or no adjustments by ***.  After *** of a Contract Year AK Steel’s Preliminary Nomination, including any adjustments, shall be final (“Final Nomination”), and AK Steel shall be obligated to purchase and Cliffs shall be obligated to sell such tonnage of Cliffs Pellets in accordance with such Final Nomination.
(g)    Beginning *** Contract year, as part of its Preliminary Nomination, AK Steel may nominate additional tonnage beyond the maximum tonnage set forth in Section 2(c) (“Excess Tonnage”).  In addition to the Preliminary Nomination for the maximum tonnage for such Contract Year, AK Steel shall provide to Cliffs in writing its Excess Tonnage requirements on or before *** and Cliffs shall have thirty (30) days from the date of the request to determine whether Cliffs shall supply none, some or all of the requested Excess Tonnage. 
(h)    In order to provide Cliffs with the necessary information to plan shipments of Cliffs Pellets, on *** of the then current Contract Year, AK Steel shall provide Cliffs with a monthly shipping schedule for the current year’s shipping season (the “Shipping Schedule”).  Thereafter, AK Steel shall provide an updated Shipping Schedule on the fifteenth day of each month through *** of the Contract Year.
(i).    Notwithstanding the foregoing, nothing contained in this Section 4 shall permit AK Steel to adjust its Preliminary Nomination in any manner which would result in a Final Nomination that is beyond the *** maximum or minimum of AK Steel’s Annual Pellet Tonnage set forth in Section 2 of this Agreement.
Section 5. - Price and Adjustments.
(a). Cliffs Pellets delivered to Toledo, Ohio shall have a 2014 base price of $*** per ton iron unit (“Toledo Base Price”).  Cliffs Pellets delivered to Ashtabula, Ohio shall have a 2014 base price of $*** per ton iron unit (“Ashtabula Base Price” and together with Toledo Base Price, “Base Prices”).  
(b).    Beginning in 2014, the Base Prices shall be adjusted, up or down, each year for the Contract Year in determination as follows:
i.*** Change in PPI - *** as published by the U. S Bureau of Labor Statistics (*** i.e. for the Contract Year 2014, the adjustment will be based on the ***);
ii.*** Change in PPI - *** as published by the U. S Bureau of Labor Statistics (*** i.e. for the Contract Year 2014, the adjustment will be based on the ***);
iii.*** Change in PPI - *** as published by the U. S Bureau of Labor Statistics (*** i.e. for the Contract Year 2014, the adjustment will be based on the ***);

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iv.*** Change in the annual daily average *** (*** i.e. for the Contract Year 2014, the adjustment will be based on the ***);
v.Sum the results obtained in (i) through (iv);
vi.Multiply the results determined in (v) above by the preceding Contract Year’s then adjusted prices per iron unit;
vii.Add the results determined in (vi) above to the preceding Contract Year’s then adjusted prices per iron unit to determine the current Contract Year’s then adjusted prices per iron unit. 
a.On or before *** of the current Contract Year a provisional calculation to determine preliminary estimated adjusted prices will be made by Cliffs in a manner consistent with Section 5(b) based upon (i) the most recently published preliminary PPI data, or if not available using a commercially reasonable estimate, and (ii) the year-to-date annual daily average *** of the current Contract Year (“*** Adjustment”).  The *** Adjustment will be used for calculating provisional prices (the “*** Provisional Pricing”) for shipments of Cliffs Pellets from *** of the current Contract Year through *** of the Current Contract Year, however, the final index numbers will ultimately be used, when available to determine final adjusted prices. On or before *** of the current Contract Year a provisional calculation to determine estimated adjusted prices will be made by Cliffs in a manner consistent with Section 5(b) based upon (i) the finalized PPI data, if published, or if not available using a commercially reasonable estimate, and (ii) the year-to-date annual daily average *** as of *** of the current Contract Year (“*** Adjustment”).  The *** Adjustment will be used for calculating provisional pricing will be made by Cliffs (the “*** Provisional Pricing”) for shipments of Cliffs Pellets from *** of the current Contract Year through *** of the Current Contract Year, however, the final index numbers will ultimately be used, when available to determine adjusted prices.  The *** Adjustment may result in an invoice (“*** Adjustment Invoice”) based upon the difference between the *** Provisional Pricing and the *** Provisional Pricing for shipments of Cliffs Pellets from *** of the current Contract Year through *** of the Current Contract Year.  The *** Price Adjustment Invoice may result in amounts due to or from AK Steel, as the case may be.  Payment of the *** Price Adjustment Invoice shall be received by AK Steel or Cliffs, as the case may be, on or before *** of the current Contract Year.  On or before *** of the year following the Contract Year a final calculation consistent with Section 5(b) and (c) utilizing all finalized data for the Contract Year in determination shall be generated by Cliffs and provided to AK Steel (“Final Price Adjustment Invoice”).  The Final Price Adjustment Invoice may result in amounts due to or from AK Steel, as the case may be based upon the difference between the *** Provisional Pricing and the *** Provisional Pricing for shipments of Cliffs Pellets from *** of the current Contract Year through *** of the Current Contract Year.  Payment of the Final Price Adjustment Invoice shall be received by AK Steel or Cliffs, as the case may be, on or before *** of the year following the Contract Year in determination. Additionally, the final calculation consistent with Section 5(b) used to prepare the Final Price Adjustment Invoice shall be used for shipments of Cliffs Pellets from ***.
(c)    An example of how to calculate a Contract Year’s adjusted price per iron unit is attached hereto as Exhibit C.
(d)    In the event any of the above adjustment indices or the *** cease to be published and are no longer publicly available, then the parties agree that they shall negotiate a commercially reasonable substitute or new adjustment methodology that is representative of the intent of the parties in the above calculation.  Such discussions shall proceed upon receipt of written notice by one party to the other party.  Should the parties fail to reach a mutually 

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agreeable resolution within sixty (60) days of the date of receipt of the written notice, then the remaining indices and/or *** shall be increased on a prorata basis in place of the missing adjustment factor(s).
Section 6. - Payments.
(a)     Cliffs shall invoice AK Steel for *** of Cliffs Pellets *** Cliffs Pellet shipments. If the payment date is a holiday then it shall be paid upon the following business day.  Title and risk of loss shall transfer to AK Steel immediately upon receipt of payment by Cliffs.  So long ***.
(b)    The Cliffs Pellets are sold to AK Steel with the understanding of the parties that the Cliffs Pellets are for consumption purposes only.   AK Steel may, at its expense, transfer and consume Cliffs Pellets at and among any of the AK Steel Facilities.  AK Steel may not transfer, sell, trade or otherwise dispose of the Cliffs Pellets to a third party without the prior written consent of Cliffs regardless of whether title has passed to AK Steel.
(c).    In the event AK Steel shall fail to make payment when due of any or all amounts, Cliffs, in addition to all other remedies available to Cliffs in law or in equity, shall have the right, but not the obligation, to withhold further performance by Cliffs under this Agreement until all claims Cliffs may have against AK Steel under this Agreement are fully satisfied.
(d).    All payments shall be made in U.S. dollars.
Section 7. - Sampling and Analyses.
All pellet sampling procedures and analytical tests conducted on Cliffs Pellets sold to AK Steel to demonstrate compliance with typical specifications and analysis limits shall be performed on each pellet vessel shipment and shall be provided to AK Steel within seven (7) days of vessel loading.  Sample and test methods shall be in accordance with Cliffs’ existing practice and based on the appropriate ASTM or ISO standard methods published at the time of testing or the customary procedures and practices, or any other procedures and practices that may be mutually agreed to by Cliffs and AK Steel.  AK Steel may, at any time and from time to time through one or more authorized representatives, and with prior notice to Cliffs, be present during production, loading, or to observe sampling and analysis of pellets being processed for shipment to AK Steel.
Section 8. - Delivery and Transfer of Ownership.
(a)    Cliffs shall deliver to AK Steel the annual tonnage of Cliffs Pellets for AK Steel to the Lower Lakes Docks.  Cliffs assumes the obligation for arranging and providing appropriate vessels for the transportation of the Cliffs Pellets delivered by Cliffs to the Lower Lakes Docks.  Such delivery shall be in approximately equal amounts over the nine-month vessel Shipping Season.  AK Steel will instruct the Lower Lakes Docks to segregate the Tilden Pellets from the United Pellets, which AK Steel shall notify Cliffs of such instructions.
(b)    Title, and all risk of loss, damage or destruction of Cliffs Pellets shall transfer to AK Steel upon receipt of payment as provided for in Section 6(a). 
Section 9. - Shipments.
Cliffs shall be responsible for delivering Cliffs Pellets to the Lower Lakes Docks in approximately equal amounts over the nine-month period of March 25 through January 15 (“Vessel Season”). During the term of this Agreement the parties will ensure that the Cliffs Pellets will be delivered by Cliffs on a prorata basis over the Vessel Season and taken by AK Steel on a prorata basis over ***.  Each Vessel Season is determined by the U.S. Army Corps of Engineers and other uncontrollable factors, such as weather, and is subject to change.  

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Section 10. - Weights.
The weight determined by certified railroad scale weights, certified belt scale weights, or certified bin scale weights in accordance with the procedures in effect from time to time at each of the loading ports ***.
Section 11. - Audit Rights.
Cliffs shall have the right but not the obligation to audit AK Steel’s consumption of pellets on a quarterly basis to determine and verify the accuracy of AK Steel’s Annual Pellet Tonnage requirements.
Section 12. - Freeze Protection.
AK Steel shall have the right, but not the obligation, to apply at its cost freeze conditioning agents and/or tarping to Cliffs Pellets during periods of cold weather.  In the event Cliffs sells to third parties pellets to which AK Steel has applied freeze protection and/or tarping, then Cliffs shall reimburse AK Steel for the cost of applying freeze conditioning agents and/or tarping to such pellets.
Section 13. - Warranties.
THERE ARE NO WARRANTIES, EXPRESS OR IMPLIED, WHICH EXTEND BEYOND THE PROVISIONS OF THIS AGREEMENT, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR INTENDED PURPOSE.  All notices for substantial variance in specifications of the Cliffs Pellets from the specifications and analysis limits described in Exhibit A and B shall be given in writing delivered to Cliffs within Thirty (30) calendar days after completion of discharge of the Cliffs Pellets at the Lower Lakes Docks, or any claim arising from any substantial variance shall be deemed waived by AK Steel. Each party shall afford the other party prompt and reasonable opportunity to inspect the Cliffs Pellets as to which any notice is given as above stated. No claim will be entertained after the Cliffs Pellets have been consumed.  The Cliffs Pellets shall not be returned to Cliffs without prior written consent of Cliffs.  In no event shall either party be liable for the other’s cost of processing, lost profits, injury to good will or any other special or consequential damages.
Section 14. - Force Majeure.
(a).    Force Majeure shall be defined as any unforeseeable event that delays or prevents a Party from performing, in whole or in part, any of its obligations under this Agreement due to any cause beyond the reasonable control of and not due to the fault or negligence of the declaring Party, including but not limited to acts of God, war, riots, civil insurrection, acts of the public enemy, terrorism, strikes, lockouts, natural disasters, breakdown of or damage to necessary facilities or equipment, transportation delays, orders or acts of civil or military authorities, legislation, regulation or administrative orders, or any limitation or prohibition on, or inability to obtain governmental permits or approvals required by law and necessary to, the mining, transporting, storing, or handling of iron ore, or other unforeseeable causes that are beyond the reasonable control and without the fault or negligence of the Party affected thereby.  Notwithstanding the foregoing, Force Majeure, for purposes of this Agreement, shall not include (i) the ability of Cliffs to sell Cliffs Pellets to a third party at a price greater than the applicable price as set forth in Section 5 hereof; (ii) loss of AK Steel’s markets; (iii) AK Steel's ability to purchase Cliffs Pellets from a third party at a price lower than the applicable price as set forth in Section 5 hereof; or (iv) financial difficulties of any kind.

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(b).    If because of Force Majeure either Cliffs or AK Steel is rendered wholly or partially unable to carry out its respective obligations under this Agreement, and if such Party promptly gives the other Party written notice of such Force Majeure in accordance with Paragraph 13(d) below, the obligations and liabilities of the Party giving such notice and the corresponding obligation of the other Party shall be excused to the extent made necessary by and during the continuance of such Force Majeure; provided, however, that the Party claiming Force Majeure shall use its best efforts to eliminate the cause or effect of the Force Majeure as soon as and to the extent possible except that labor disputes or strikes shall be settled at the sole discretion of the Party affected.  To the extent possible, Cliffs and AK Steel shall utilize good faith efforts to minimize the adverse effects of a Force Majeure.  AK Steel shall have the option to require Cliffs to make up any deliveries excused by reason of a Force Majeure (at the price existing as of the date of the occurrence of the Force Majeure) prior to the termination of this Agreement.  Cliffs shall have the option to require AK Steel to make up any purchases excused by reason of Force Majeure (at the price existing as of the date of the occurrence of the Force Majeure) prior to the termination of this Agreement.
(c).    If Cliffs claims Force Majeure and is unable to meet all of its delivery obligations hereunder, or if AK Steel claims Force Majeure and is unable to meet all of its purchase obligations hereunder, then any reductions in Cliffs’ deliveries or AK Steel's purchases (as applicable) shall be allocated on a pro rata basis with all other iron ore supply or purchase agreements involving iron ore of the same type and quality as the Cliffs Pellets.  Upon a written request by the Party not claiming Force Majeure, the declaring Party shall provide reasonable written documentation to establish that its deliveries or purchases (as applicable) have been allocated on such a pro rata basis.
(d).    Should either Party experience an event of Force Majeure impacting its ability to perform its obligations under this Agreement, said Party shall provide written notice within ten (10) business days to the Party not claiming Force Majeure setting forth the date(s) on which the Force Majeure occurred, a brief description of the event of Force Majeure, and the estimated duration of the impact of the Force Majeure at that time.
(e).    If a Party declares a complete or partial Force Majeure based on damage to and/or unexpected conditions with respect to any real and/or personal property within its custody or control, then the Party not claiming Force Majeure and/or its appointed designee shall have the right to inspect (upon a written request) the property affected by the Force Majeure.  The non-declaring Party shall choose the date and time of the inspection, however, such date and time must be consented to by the declaring Party, which consent shall not be unreasonably withheld.  The declaring Party shall make such property available for inspection within twenty (20) Business Days after the Party not claiming Force Majeure requests the inspection.  A Party is entitled to one such inspection per declared Force Majeure, but upon the written consent of the declaring Party, additional inspections may be permitted.  Such consent shall not be unreasonably withheld. 
Section 15. - Notices.
All notices, consents, reports and other documents authorized and required to be given pursuant to this Agreement shall be given in writing and either personally served on an officer of the parties hereto to whom it is given or mailed, postage prepaid, or sent by e-mail addressed as follows:

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	If to Cliffs:

	200 Public Square - 32nd Floor
Cleveland, Ohio  44114
Attention:  Senior Vice President Global Iron Ore Metallic Sales
cc: Group Counsel - Commercial
E-mail:  Terrence.mee@cliffsnr.com
            Susanne.dickerson@cliffsnr.com

	If to AK Steel:

	9227 Centre Pointe Drive
West Chester, OH 45069
Attn: Vice President - Engineering, Raw Materials & Energy
E-mail: mo.reed@aksteel.com
cc:  Manager Raw Materials Purchasing
E-mail: alexander.vincze@akstell.com

provided, however, that any party may change the address to which notices or other communications to it shall be sent by giving to the other party written notice of such change, in which case notices and other communications to the party giving the notice of the change of address shall not be deemed to have been sufficiently given or delivered unless addressed to it at the new address as stated in said notice.
Section 16. - Term.
(a)    The Term of this Agreement shall commence as of January 1, 2014 and continue through December 31, 2023.  
(b)    This Agreement shall remain valid and fully enforceable for the fulfillment of obligations incurred prior to termination.
Section 17. - Amendment.
This Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.
Section 18. - Merger, Transfer and Assignment.
(a)    AK Steel shall not merge, consolidate or reorganize with any person, partnership, corporation or other entity unless the surviving or resulting person, partnership, corporation or other entity assumes in writing all of AK Steel's obligations under this Agreement.  Any obligations required to be assumed by a surviving or resulting person, partnership, corporation or entity in accordance with this Section 17(a) shall be limited to the AK Steel obligations under this Agreement, and this Section 17(a) is not intended (i) to impose and shall not be deemed to impose upon any such surviving or resulting person, partnership, corporation or entity, including AK Steel, any obligation with respect to any pellet requirements it may have for any facility or facilities it owns or operates other than AK Steel, nor (ii) to allow the surviving or resulting person, partnership, corporation or other entity to substitute any other pellet tonnage available from any other pellet purchase or pellet equity commitment of such surviving or resulting person, partnership, corporation or other entity in order to satisfy the assumed obligations under this Agreement for AK Steel .
(b)    AK Steel shall not sell or transfer all or any of the blast furnace operations at AK Steel to any other person, partnership, corporation, joint venture or other entity (“Transferee”) unless the Transferee assumes in writing all of AK Steel's obligations under this Agreement, as such obligations relate to AK Steel  being sold or transferred.  Any obligations required to be assumed by a Transferee in accordance with this Section 17(b) shall be limited to the 

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AK Steel obligations under this Agreement relating to the particular facility or facilities sold or transferred.  This Section 17(b) is not intended (i) to impose and shall not be deemed to impose upon any such Transferee any obligation with respect to any pellet requirements such Transferee may have for any facility or facilities such Transferee owns or operates other than AK Steel , nor (ii) to allow such Transferee to substitute any other pellet tonnage available from any other pellet purchase or pellet equity commitment of such Transferee in order to satisfy the assumed obligations under this Agreement.
(c)    AK Steel shall not assign its rights or delegate its obligations under this Agreement except as provided in Section 17(a) or 17(b).
(d)    Cliffs shall not merge, consolidate or reorganize with any person, partnership, corporation or other entity unless the surviving or resulting person, partnership, corporation or other entity assumes in writing all of Cliffs’ obligations under this Agreement.  Cliffs shall not sell or transfer all or substantially all of its iron ore business to any other person, partnership, corporation, joint venture or other entity (“Cliffs Transferee”) unless the Cliffs Transferee assumes in writing all of Cliffs’ obligations under this Agreement.
(e)    Cliffs shall not assign its rights or delegate its obligations under this Agreement except as provided in Section 17(d).
(f)    All the covenants, stipulations and agreements herein contained shall inure to the benefit of and bind the parties hereto and their respective successors, transferees and permitted assigns, and any of the latter’s subsequent successors, transferees and permitted assigns.
Section 19. - Waiver.
No waiver of any of the terms of this Agreement shall be valid unless in writing.  No waiver or any breach of any provision hereof or default under any provisions hereof shall be deemed a waiver of any subsequent breach or default of any kind whatsoever.
Section 20. - Confidentiality.
(a)    Cliffs and AK Steel acknowledge that this Agreement contains certain pricing, adjustment and term provisions which are confidential, proprietary or of a sensitive commercial nature and which would put Cliffs or AK Steel at a competitive disadvantage if disclosed to the public, including without limitation, Section 2, Section 3, Section 4, Section 5, Section 6 and all of the Schedules, Appendices and Exhibits hereto (“Confidential Information”).  Cliffs and AK Steel agree that all provisions of this Agreement shall be kept confidential and, without the prior written consent of the other party, shall not be disclosed to any party not a party to this Agreement except as required by law or governmental or judicial order and except that disclosure of the existence of this Agreement shall not be precluded by this Section 19.
(b)    If either party is required by law or governmental or judicial order or receives legal process or court or agency directive requesting or requiring disclosure of any of the Confidential Information contained in this Agreement, such party will promptly notify the other party prior to disclosure to permit such party to seek a protective order or take other appropriate action to preserve the confidentiality of such Confidential Information.  If either party determines to file this Agreement with the Securities and Exchange Commission (“Commission”) or any other federal, state or local governmental or regulatory authority, or with any stock exchange or similar body, such determining party will use its best efforts to obtain confidential treatment of such Confidential Information pursuant to any applicable rule, regulation or procedure of the Commission and any applicable rule, regulation or procedure relating to confidential filings made 

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with any such other authority or exchange.  If the Commission (or any such other authority or exchange) denies such party’s request for confidential treatment of such Confidential Information, such party will use its best efforts to obtain confidential treatment of the portions thereof that the other party designates.  Each party will allow the other party to participate in seeking to obtain such confidential treatment for Confidential Information.
Section 21. - Governing Law and Arbitration.
(a)    This Agreement shall in all respects, including matters of construction, validity and performance, be governed by and be construed in accordance with the laws of the State of Ohio, excluding its choice of law principles.
(b)    Upon notice by either party to the other, all disputes, claims, questions or disagreements arising out of or relating to this Agreement, breach, termination, enforcement, interpretation or validity of this Agreement, including the determination of the scope or applicability of this Agreement to arbitrate, shall be determined by arbitration administered by the American Arbitration Association in accordance with the provisions of its Commercial Arbitration Rules, modified as follows:
(i).    The place of arbitration shall be Cleveland, Ohio;
(ii).    Unless the parties consent in writing to a lesser number, the arbitration proceedings shall be conducted before a panel of three neutral arbitrators, one to be appointed by Cliffs, one to be appointed by AK Steel, and the third to be selected by the two arbitrators.  None of the arbitrators shall be an employee, officer, director or consultant of, or of a direct competitor of, AK Steel or Cliffs;
(iii).    Either party may apply to the arbitrators seeking injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved.  Either party also may, without waiving any remedy under this Agreement, seek from any court having jurisdiction any interim or provisional relief that is necessary to protect the rights or property of that party, pending the establishment of the arbitral tribunal (or pending the arbitral tribunal’s determination of the merits of the controversy);
(iv).    Consistent with the expedited nature of arbitration, each party will, upon the written request of the other party, promptly provide the other with copies of documents on which the producing party may rely or otherwise which may be relevant in support of or in opposition to any claim or defense; any dispute regarding discovery, or the relevance or scope thereof, shall be determined by the arbitrators, which determination shall be conclusive; and all discovery shall be completed within forty-five (45) days following the appointment of the arbitrators;
(v).    In connection with any arbitration arising out of this Agreement, the arbitrators shall have no authority to alter, amend, or modify any of the terms and conditions of this Agreement, and further, the arbitrators may not enter any award that alters, amends or modifies terms or conditions of this Agreement in any form or manner; 
(vi).    The arbitration shall be “Baseball Style” wherein each party shall submit to the arbitrators and exchange with each other in advance of the hearing their last, best offers. The arbitrators shall be limited to awarding only one or the other of the two figures submitted; 
(vii).    The award or decision shall be made within nine (9) months of the filing of the notice of intention to arbitrate, and the arbitrators shall agree to comply with this schedule before accepting appointment; provided, however, that this time limit may be extended by written agreement signed by both parties or by the arbitrators, if necessary; and
(viii).    In connection with any arbitration related to this Agreement, each party shall be responsible for its own costs and expenses, and the parties will equally split the cost of conducting the arbitration itself.

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(c)    The judgment of the arbitrators shall be final and binding on the parties, and judgment upon the award rendered by the arbitrators may be entered and enforced by any court of the United States or any state thereof.  The arbitrators shall render their final decision within nine (9) months of the filing of the arbitration demand.
Section 22. - Representations and Warranties.
(a)    AK Steel represents and warrants to Cliffs that (i) the execution and delivery of this Agreement by AK Steel and the performance of its obligations hereunder have been duly authorized by all requisite corporate action, (ii) neither the execution and delivery of this Agreement, nor the performance of its obligations hereunder by AK Steel shall, or after the lapse of time or giving of notice shall, conflict with, violate or result in a breach of, or constitute a default under any certificate of incorporation or bylaws of AK Steel or any law, statute, rule or regulation applicable to it, or conflict with, violate or result in a breach of or constitute a default under the material agreement to which it is a party or by which it or any of its properties is bound, or any judgment, order, award or decree to which AK Steel is a party or by which it is bound, or require any approval, consent, authorization or other action by any court, governmental authority or regulatory body or any creditor of AK Steel or any other person or entity, and (iii) this Agreement constitutes a valid and binding obligation of AK Steel and is enforceable against AK Steel in accordance with its terms.
(b)    Cliffs represents and warrants to AK Steel that:  (i) the execution and delivery of this Agreement by Cliffs and the performance of its obligations hereunder have been duly authorized by all requisite corporate actions, (ii) neither the execution and delivery of this Agreement nor the performance of its obligations hereunder by Cliffs shall, or after the lapse of time or giving of notice shall, conflict with, violate or result in a breach of, or constitute a default under any articles of incorporation or regulations of Cliffs or any law, statute, rule or regulation applicable to it, or conflict with, violate or result in the breach of or constitute a default under any material agreement to which it is a party or by which it or any of its properties is bound, or any judgment, order, award or decree to which Cliffs is a party or by which it is bound, or require any approval, consent, authorization or other action by any court, governmental authority or regulatory body or any creditor of Cliffs or any other person or entity, and (iii) this Agreement constitutes a valid and binding obligation of Cliffs and is enforceable against Cliffs in accordance with its terms.
Section 23. - Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, and may be delivered by electronic transmission.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

11

CONFIDENTIAL

Section 23. - Severability.
In the event any of the provision, or portions thereof, in this Agreement are held to be unenforceable or invalid by any court of competent or arbitration panel, the validity and enforceability of the remaining provisions, or portions thereof, shall not be affected thereby.

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

	
					
	CLIFFS SALES COMPANY
	 
	AK STEEL CORPORATION

	By:
	/s/ P. Kelly Tompkins
	 
	By:
	/s/ Mo Reed

	Name:
	P. Kelly Tompkins
	 
	Name:
	Mo Reed

	Title:
	 
	 
	Title:
	VP Engineering, Raw Materials & Energy

	Date:
	2/27/2014
	 
	Date:
	2/20/2014

12

	
	
	CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

CONFIDENTIAL

	
															
	EXHIBIT A

	CLIFFS SALES COMPANY

	AK STEEL CORPORATION

	PELLET TYPICAL ANALYSIS AS LOADED TO VESSEL FOR SHIPMENT

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	Report
	 
	 
	TILDEN HEMATITE

	 
	 
	 
	 
	 
	 
	 
	Frequency
	 
	 
	Typical
	 
	Minimum
	 
	Maximum

	Moisture
	 
	V
	 
	 
	***
	 
	 
	 
	***

	A. DRY CHEMICAL ANALYSIS
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Fe
	 
	 
	 
	 
	V
	 
	 
	61.0
	 
	 
	 
	 

	 
	SiO2
	 
	 
	 
	V
	 
	 
	***
	 
	***
	 
	***

	 
	AI2O3
	 
	 
	V
	 
	 
	***
	 
	***
	 
	***

	 
	CaO 
	 
	 
	 
	V
	 
	 
	***
	 
	***
	 
	***

	 
	MgO
	 
	 
	 
	V
	 
	 
	***
	 
	***
	 
	***

	 
	Mn
	 
	 
	 
	V
	 
	 
	***
	 
	 
	 
	 

	 
	Phos
	 
	 
	V
	 
	 
	***
	 
	 
	 
	***

	 
	CaO  / SiO2
	 
	V
	 
	 
	***
	 
	***
	 
	***

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	B. SIZING, Wt. %
	 
	 
	 
	 
	 
	 
	 
	 
	 

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

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

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

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	C. TUMBLE TEST
	 
	 
	 
	 
	 
	 
	 
	 
	 

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

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

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	D. COMPRESSION TEST
	 
	 
	 
	 
	 
	 
	 
	 
	 

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

	 
	% - 300 lbs
	 
	V
	 
	 
	***
	 
	 
	 
	***

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	D. METALLURGICAL TESTS
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	LTB
	 
	 
	 
	V
	 
	 
	***
	 
	***
	 
	 

	 
	Reducibility R40
	 
	V
	 
	 
	***
	 
	***
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	LETTER "V" DENOTES THAT ANALYSIS TO BE PROVIDED ON EACH VESSEL SHIPMENT OF PELLETS

13

	
	
	CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

CONFIDENTIAL

	
															
	 

	EXHIBIT B

	CLIFFS SALES COMPANY

	AK STEEL CORPORATION

	PELLET TYPICAL ANALYSIS AS LOADED TO VESSEL FOR SHIPMENT

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	Report
	 
	 
	UNITED TACONITE PARTIAL FLUX

	 
	 
	Frequency
	 
	 
	Typical
	 
	Minimum
	 
	Maximum

	Moisture
	 
	V
	 
	 
	***
	 
	 
	 
	 

	A. DRY CHEMICAL ANALYSIS
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	Fe
	 
	 
	 
	V
	 
	 
	65.2
	 
	***
	 
	 

	 
	SiO2
	 
	 
	V
	 
	 
	***
	 
	***
	 
	***

	 
	AI2O3
	 
	V
	 
	 
	***
	 
	 
	 
	 

	 
	CaO 
	 
	 
	V
	 
	 
	***
	 
	 
	 
	 

	 
	MgO
	 
	V
	 
	 
	***
	 
	 
	 
	 

	 
	Mn
	 
	 
	 
	V
	 
	 
	***
	 
	 
	 
	 

	 
	Phos
	 
	V
	 
	 
	***
	 
	 
	 
	***

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	B. SIZING, Wt. %
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	% + 1/2"
	 
	V
	 
	 
	***
	 
	 
	 
	 

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

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	C. TUMBLE TEST
	 
	 
	 
	 
	 
	 
	 
	 
	 

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

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

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	D. COMPRESSION TEST
	 
	 
	 
	 
	 
	 
	 
	 
	 

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

	 
	% - 300 lbs
	 
	V
	 
	 
	***
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	D. METALLURGICAL TESTS
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	LTB
	 
	 
	 
	V
	 
	 
	***
	 
	***
	 
	 

	 
	Reducibility R40
	 
	V
	 
	 
	***
	 
	***
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 

	LETTER "V" DENOTES THAT ANALYSIS TO BE PROVIDED ON EACH VESSEL SHIPMENT OF PELLETS

14

	
	
	CONFIDENTIAL MATERIAL HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.

CONFIDENTIAL

	
		
	EXHIBIT C

	CLIFFS SALES COMPANY

	AK STEEL CORPORATION

	EXAMPLE OF 2014 - 2023 ANNUAL PELLET PRICE CALCULATION

	 
	 

	 
	 

	2014 Pellet Price Calculation
	 

	(All dollar values and index percent changes are estimated for illustrative purposes only.)
	 

	 
	 

	Percent Change in PPI - *** (***)1
	***

	Percent Change in PPI - ***
	***

	 
	 

	Percent Change in PPI - *** (***)1
	***

	Percent Change in PPI - ***
	***

	 
	 

	Percent Change in PPI - *** (***)1
	***

	Percent Change in PPI ***
	***

	 
	 

	*** arithmetic average of each ***2
	***

	*** arithmetic average of each *** price2
	***

	Percent Change in *** (***)
	***

	Percent Change in ***
	***

	 
	 

	Total Adjustment Factors Percent Change
	***

	 
	 

	 
	 

	2014 Base Price Per Iron Unit Delivered to Toledo, OH
	***

	Per Iron Unit Price Change
	***

	Final 2014 Price Per Iron Unit Delivered to Toledo, OH
	***

	 
	 

	2014 Base Price Per Iron Unit Delivered to Ashtabula, OH
	***

	Per Iron Unit Price Change
	***

	Final 2014 Price Per Iron Unit Delivered to Ashtabula, OH
	***

	 
	 

	1As published by the Bureau of Labor Statistics, based on a ***

	 
	 

	2***

15Ex 10.1 - A BEEP Agreement

		
			Exhibit 10.1
		

		
			CONFIDENTIAL TREATMENT REQUESTED.

		

		
			CUSTOMER ACQUISITION AND RESALE Agreement
		

		
			﻿
		

		
			THIS CUSTOMER ACQUISITION AND RESALE AGREEMENT (“Agreement”) is entered into effective January 2nd, 2019 (“Effective Date”) by pdvWireless, Inc. (“Operator”), a Delaware corporation having its principal place of business at 3 Garret Mountain Plaza, Suite 401, Woodland Park, NJ 07424 and ABEEP, LLC (“Reseller”), an Illinois limited liability company, having its principal place of business at 452 N. Chicago St., Joliet, IL  60432.  
		

			
	
			
				 A.
			

			
	
			
			Operator provides facilities-based wireless voice and data services on its TeamConnect Metro and Campus (a.k.a. MotoTRBO) systems (“Systems”) to System Customers in the Geographic Markets (as defined below).

			
	
			
				 B.
			

			
	
			
			Operator resells Reseller’s cellular push-to-talk Diga-Talk Plus (“PoC”) service to Operator customers (“PoC Customers”) operating within and outside of the Geographic Markets.  

			
	
			
				 C.
			

			
	
			
			Reseller wishes to acquire the System Customers, purchase access to the Systems in the Geographic Markets, and resell access to the Systems, under a Mobile Virtual Network Operation (“MVNO”) Arrangement (as defined below) [*].

			
	
			
				 D.
			

			
	
			
			Operator wishes to assign the System Customers to Reseller, along with access to the Systems [*], and to assign the PoC Customers to Reseller. 

		
			In consideration of the mutual agreements and the terms and conditions below, the parties agree as follows:
		

		
			Definitions.
		

		
			“Billed Revenue” means any recurring revenue in the form of any money or other consideration received or recognized by Reseller (or any affiliates) from PoC Customers and System Customers in accordance with the provisions in Exhibit A.  Billed Revenue does not include taxes or other fees assessed, collected or otherwise imposed by a governmental authority. 
		

		
			“Customers” means PoC Customers and System Customers.
		

		
			“Geographic Markets” means the geographic territories and sites set forth in Exhibit B.
		

		
			[*]
		

		
			[*]
		

		
			“MVNO Arrangement” has the meaning given to it in Section 2.
		

		
			[*]
		

		
			“PoC Customers” means Operator’s customers, wherever located, utilizing Reseller’s Diga-Talk Plus service.   
		

		
			[*]
		

		
			 “System Customers” means Operator’s customers operating on the Systems in the Geographic Markets as of the Effective Date, including System Customers’ then operational units and any units added by System Customers after the Effective Date.    
		

		 

		

			*CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

		

		

			 

		

 

		
			“Transition Date” means the date on which Reseller assumes the System Customers responsibilities described in Section 2.3.
		

		
			  “Transition Period” means up to a ninety (90)-day period after the Effective Date, as further described in Section 2.3.
		

		
			MVNO Arrangement.  
		

		
			MVNO Services. As of the Effective Date [*], Reseller will purchase from Operator access to the Systems for resale to System Customers in the Geographic Markets.  On the Transition Date Date, Operator will assign to Reseller all Long-Term Equipment Rental (a.k.a. Managed Services) Assets as defined in Operator’s System Customer agreements and used by System Customers in the Geographic Markets, which are identified on Exhibit C.  Prior to the end of the Transition Period and except as provided in Section 2.3, Reseller, at its own expense, will provide maintenance for the Systems, as well as customer care, billing, and collections services for all System Customers.  Reseller’s use of the Systems will terminate [*].
		

		
			Operator Obligations.    Until the earlier of (a) [*], and (b) twenty-four (24) months after the Effective Date, Operator will: (i) pay all site lease, backhaul and utility costs associated with the Systems, which operate on equipment owned by Operator; and (ii) provide for Reseller’s use as needed in performing any repairs to the System unused/underutilized equipment or spares of any capital equipment related to the Systems that cannot reasonably be repaired.  
		

		
			Transition Period. For a maximum period of ninety (90) days following the Effective Date, Operator will provide business operations personnel and continue providing customer care, billing and collections services to facilitate the transitioning of System Customers to the MVNO Arrangement until Reseller has advised Operator that it is ready to perform those services. Operator agrees to provide a letter to System Customers, the substance of which letter shall be mutually agreed upon by the parties hereto, advising the System Customers that [*].  
		

		
			PoC Customers.  As of the Transition Date, at its own expense, Reseller will assume all responsibility for PoC Customer service, billing, and collections.
		

		
			Customer Acquisition.  Reseller will compensate Operator for access to the Systems and the acquisition of PoC Customers and System Customers according to the provisions of Section 6 and the schedule in Exhibit A.  
		

		
			[*]    
		

		
			Customer Payments; Reporting.
		

		
			Payments.  Reseller shall pay Operator a percentage of monthly Billed Revenue as further defined in Exhibit A (“Payments”).  Payments are due within thirty (30) days of the end of the calendar month in which PoC Customers and System Customers are billed by Reseller.   Reseller shall only be required to pay Operator for the actual amount collected by Reseller with respect to any pre-Transition Date revenue received by Reseller.
		

		
			Reporting. Within ten (10) business days following the close of a calendar month, Reseller shall provide Operator with the following written reports for the previous calendar month: (a) all Billed Revenue and collections; (b) PoC Customer and System Customer activations and deactivations; and (c) such other information as Operator reasonably requests.  [*]  
		

		 

		

			2

		

		

			 

		

		

			*CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

		

		

			 

		

 

		
			Audit Rights.  Reseller will maintain all books and records relevant to compliance with this Agreement until at least five (5) years after termination of this Agreement.  Operator will be entitled to audit the books, records and facilities of Reseller (or any affiliates, if applicable) with respect to compliance with this Agreement.  Reseller will pay the reasonable audit costs if the audit concludes that Operator has been underpaid by more than five percent (5%) for any period.  The audit shall take place at a location designated by Reseller.  This provision will survive expiration or termination of this Agreement.
		

		
			Representations and Warranties.  
		

		
			Mutual.   Each party represents to the other that:  (a) it has full authority to execute and deliver this Agreement and to perform its obligation hereunder; (b) this Agreement constitutes its valid and binding obligation entered into freely and in accordance with its business judgment as the result of arm's-length bargaining and is enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors' rights or equitable principles generally; and (c) neither the execution nor the delivery of this Agreement, nor the carrying out of its obligations hereunder will conflict with or result in any violation of or constitute a default under any term of its articles of incorporation or bylaws, or any material agreement, mortgage, indenture, license, permit, lease or other instrument, judgment, decree, order, law or regulation by which it is bound.        
		

		
			Compliance with Laws.  Reseller shall comply with all applicable laws and regulations and shall obtain all applicable permits and licenses required in connection with its obligations under this Agreement.   Without limiting the generality of the foregoing, Reseller shall comply fully with all applicable data protection, privacy, and similar laws and regulations of the United States. The parties acknowledge that certain Customers may impose additional compliance requirements, which Reseller must satisfy.
		

		
			Taxes. Reseller is solely responsible for reporting, withholding and paying any and all employment-related taxes, payments, and withholdings, including federal, state, and local income taxes, related to its operations under the MVNO Arrangement.
		

		
			Warranty Disclaimer. OPERATOR MAKES NO WARRANTIES WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT AND DISCLAIMS ALL OTHER WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT. 
		

		
			Term and Termination.
		

		
			Term. This Agreement will expire upon Reseller’s delivery of the Payment and reports as set out in Section 6 for [*], unless terminated earlier as provided in this Agreement; except that Sections 6.3, 7.4, 8.2(c), 8.3, 9, 10, 11, and 14 shall survive expiration or termination of this Agreement.  
		

		
			Termination for Breach.
		

		
			By Reseller.   If Reseller materially breaches this Agreement and fails to cure such breach within thirty (30) days of receipt of written notice thereof from Operator, Operator may terminate this Agreement by written notice.  In addition, Operator may terminate this Agreement immediately upon written notice to Reseller in the event of dishonesty, fraud, misrepresentation or similar cause by Reseller.
		

		
			 By Operator. If Operator materially breaches this Agreement and fails to cure such breach within thirty (30) days of receipt of written notice thereof from Reseller, Reseller may terminate this Agreement by written notice.  In addition, Reseller may terminate this Agreement immediately upon written notice to Reseller in the event of dishonesty, fraud, misrepresentation or similar cause by Operator.
		

		 

		

			3

		

		

			 

		

		

			*CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

		

		

			 

		

 

		
			In the event of termination by Operator due to Reseller’s failure to cure a material breach of this Agreement, including, but not limited to, its failure to make the Payment specified in Section 6.1, Operator shall have the right, without further notice, to resume responsibility for customer care, billing and collection services for any System Customers still operating on the Systems.  Reseller shall cooperate in providing to Operator all System Customers data needed for Operator to provide those services and Reseller shall use commercially reasonable efforts to facilitate the transition.  In the event of termination prior to Reseller remitting to Operator the Payment for the prior month, Reseller shall promptly remit the Payment to Operator.  Notwithstanding the foregoing, in the event of a bona fide dispute as to the amount of the payment which Reseller was required to make, Operator and Reseller agree that prior to Operator taking action to resume responsibility for customer care, billing and collection services, the dispute shall be resolved by binding arbitration as provided in Section 14.7, and then, and only then, in the event that Reseller fails to pay Operator the amount so determined to be due, shall Operator have the right to resume responsibility for customer care, billing and collection services for any System Customer.
		

		
			Long-Term Equipment Rental Assets.  In the event the Agreement is terminated prior to expiration of the term, ownership of the Long-Term Equipment Rental Assets assigned to Reseller on the Effective Date pursuant to Section 2.1 and identified on Exhibit C shall revert back to Operator and any equipment held by Reseller shall be returned to Operator within thirty (30) days in the same condition as at assignment, normal wear and tear excluded.
		

		
			Confidentiality.   
		

		
			Definition. “Confidential Information” means: (a) all non-public information (including but not limited to trade secrets, proprietary information, and information about products, business methods and business plans) relating to the business of Operator, Reseller, or any Customer or to the business of such parties’ suppliers, or other partners) that is either marked or otherwise identified as confidential or proprietary, or that a reasonable person would understand to be considered confidential by the party to which it pertains (even if not so marked or identified); and (b) all information that such party is obligated by law or contract to treat as confidential for the benefit of third parties, including all data from Customers in connection with MVNO Services. 
		

		
			Non-disclosure Obligation. Each party agrees to hold all Confidential Information in trust and confidence at all times and not to disclose, reveal, or divulge any Confidential Information, directly or indirectly, intentionally or negligently, to any person without the express written consent of the party whose Confidential Information it is.
		

		
			Use Limitation. Reseller agrees not to use any Confidential Information for its own benefit or for any other purpose outside the scope of providing the MVNO Services without express written consent thereto.
		

		
			Exceptions.  Neither party is obligated under this section for Confidential Information that (a) is generally known, or readily ascertainable by proper means, by the public other than through a breach of this Agreement; (b) was known by the party on a nonconfidential basis prior to receipt under this Agreement as evidenced by written records; or (c) is rightly received from a third party not subject to any nondisclosure obligations with respect to such Confidential Information.
		

		
			Subpoena or Order. If either party receives service of a subpoena or order or other compulsory instrument issued by or under the authority of a court of competent jurisdiction or by a governmental agency that requests all or any part of the Confidential Information, that party shall: (a) provide the other party with prompt written notice of the existence, terms, and circumstances surrounding such request or 
		

		 

		

			4

		

		

			 

		

		

			*CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

		

		

			 

		

 

		requirement; (b) consult with the other party on the advisability of taking steps to resist or narrow that request; (c) if disclosure of Confidential Information is required, furnish only such portion of the Confidential Information as the party is advised in writing by its counsel is legally required to be disclosed; and (d) cooperate with the other party in its efforts to obtain an order excusing the Confidential Information from disclosure, or an order or other reliable assurance that confidential treatment will be accorded to that portion of the Confidential Information that is required to be disclosed.
		

		
			Limited Liability.  NOTWITHSTANDING ANYTHING ELSE IN THIS AGREEMENT OR OTHERWISE, OPERATOR WILL NOT BE LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY, OR OTHER LEGAL OR EQUITABLE THEORY FOR (A) AMOUNTS THAT IN THE AGGREGATE ARE IN EXCESS OF THE AMOUNTS PAID TO OPERATOR HEREUNDER  OR (B) ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOST PROFITS OR LOST DATA OR (C) COST OF PROCUREMENT OF SUBSTITUTE GOODS, TECHNOLOGY, OR SERVICES OR (D) FOR LOSS OR CORRUPTION OF DATA OR INTERRUPTION OF USE.  OPERATOR SHALL HAVE NO LIABILITY FOR ANY FAILURE OR DELAY DUE TO MATTERS BEYOND ITS REASONABLE CONTROL. THIS SECTION DOES NOT LIMIT LIABILITY FOR BODILY INJURY OF A PERSON.
		

		
			Indemnification.
		

		
			Indemnification. Each party shall indemnify, defend and hold the other Party harmless, along with its employees, officers, owners, and agents, from and against any third-party claim (a “Claim”), and reimburse them for all liabilities, losses, costs, damages, and expenses (including reasonable attorney fees and court costs) (collectively, “Losses”), related to or arising out of Claims of bodily injury (including death), damage to property (including loss of use of property and loss of access to the Systems) that occurs in connection with the indemnifying party’s performance under this Agreement, to the extent that such injury or damage is caused by the acts, errors, or omissions of the indemnifying party or its employees or agents.  In addition, Operator shall indemnify, defend and hold Reseller harmless of and from any third-party claims, demands, liabilities, losses, costs, damages and expenses arising out of or relating to (a) a site lease to which Operator is a party, (b) proper use of the software used for the Systems, to the extent such software is owned by Operator, and (c) [*], in each case except to the extent such claims arise from or relate to the acts or omissions of Reseller.
		

		
			Procedures. The indemnified party shall (a) notify the indemnifying party promptly in writing of each Claim; (b) tender to the indemnifying party sole control of the defense or settlement of each Claim at the indemnifying party’s expense; and (c) cooperate with and, at indemnifying party’s expense, assist in such defense.  The indemnified party will have the right to participate at its own expense in any Claim or related settlement negotiations using counsel of its own choice.
		

		
			Insurance.  
		

		
			Nature and Amounts. During the [*], Reseller and Operator shall maintain sufficient insurance coverage to enable it to meet its obligations created by this Agreement and by law. Without limiting the foregoing, Reseller and Operator shall maintain at its sole cost and expense at least the following insurance covering its obligations under this Agreement: (a) Commercial General Liability including (i) bodily injury, (ii) property damage, (iii) contractual liability coverage, and (iv) personal injury, in an amount not less than Five Million Dollars ($5,000,000) per occurrence; (b) Workers’ Compensation at statutory limits).
		

		
			Specific Requirements. Reseller and Operator shall cause each of the above policies to (a) name the other party as an additional insured, and (b) contain a provision requiring at least thirty (30) days’ prior 
		

		 

		

			5

		

		

			 

		

		

			*CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

		

		

			 

		

 

		written notice to the other party Operator of any cancellation, modification or non-renewal.  Reseller and Operator shall furnish to each other certificates of insurance and such other documentation relating to such policies within fifteen (15) days following the Effective Date and as Reseller and Operator may otherwise reasonably request.
		

		
			FCC Compliance.  The parties agree to comply with all applicable FCC rules and regulations governing the licenses (“Licenses”) authorizing the operation of the Systems and specifically agree as follows:  (i)  Reseller shall not represent itself as the licensee of the Systems, and Operator shall, in cooperation with Reseller, take all actions necessary to keep the Licenses in force and shall prepare and submit to the FCC or any other relevant authority all reports, applications, renewals, filings or other documents necessary to keep the Licenses in force and in good standing; (ii)  Neither Reseller nor Operator shall represent itself as the legal representative of the other before the FCC, but will cooperate with each other with respect to FCC matters concerning the Licenses; (iii)  Reseller shall ensure that all applicable FCC regulations are met with respect to operation of the Systems, and Operator may conduct periodic audits of part or all of Reseller’s operations to ensure full compliance with FCC rules and regulations; (iv) Nothing in this Agreement is intended to diminish or restrict Operator's obligations as an FCC licensee and both parties desire that this Agreement be in compliance with the rules and regulations of the FCC.  In the event that the FCC determines that any provision of this Agreement violates any FCC rule, policy or regulation, both parties will make good faith efforts immediately to correct the problem and bring this Agreement into compliance consistent with the intent of this Agreement; and (v) Operator at all times retains ultimate supervisory control over the deployment and operation of the Frequencies.
		

		
			General Provisions.  
		

		
			Independent Contractors. This Agreement will not be construed as creating an employment, agency, partnership, or joint venture relationship or as permitting any party hereto to incur obligations on behalf of the other party. 
		

		
			Assignment. This Agreement is not assignable or transferable by either party without the prior written consent of the other, except to a successor to all or substantially all of Operator’s assets or business relating to the subject matter of this Agreement, provided such consent shall not be unreasonably withheld.  All other assignments or transfers (including by operation of law) shall require the express prior written consent of Operator. Notwithstanding the foregoing, Operator may subcontract any of its obligations hereunder to a third party.
		

		
			Publicity.  Neither party shall, without the written consent of the other party, issue any news release, public announcement, advertisement, or other form of publicity regarding the Agreement.  The parties will cooperate in notifying Customers of the Agreement.
		

		
			No Third-Party Beneficiaries. This Agreement is an agreement between the parties and confers no rights upon any of the parties’ employees, agents, contractors, or customers, or upon any other person or entity.
		

		
			Notices. Any notice, report, approval or consent required or permitted hereunder shall be in writing and will be deemed to have been duly given to a party if delivered personally or mailed by first-class, registered or certified US mail, postage prepaid to the address of that party as set forth on the first page of this Agreement; or such other address as is provided by that party to the other upon ten (10) days written notice.  
		

		 

		

			6

		

		

			 

		

		

			*CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

		

		

			 

		

 

		
			No Waiver; Entire Agreement. No failure to exercise, and no delay in exercising, on the part of either party, any privilege, any power or any rights hereunder will operate as a waiver thereof, nor will any single or partial exercise of any right or power hereunder preclude further exercise of any other right hereunder.  If any provision of this Agreement shall be adjudged by any court of competent jurisdiction to be unenforceable or invalid, that provision shall be limited or eliminated to the minimum extent necessary so that this Agreement shall otherwise remain in full force and effect and enforceable.  Any waivers or amendments shall be effective only if made in writing and signed by authorized representatives of the parties. This Agreement is the complete and exclusive statement of the mutual understanding of the parties and supersedes and cancels all previous written and oral agreements and communications relating to the subject matter of this Agreement.  
		

		
			Jurisdiction; Venue. This Agreement shall be governed by and construed pursuant to the laws of the State of New Jersey and the United States without regard to conflicts of laws provisions thereof.  Unless otherwise elected by Operator in writing for a particular instance, the exclusive jurisdiction and venue for actions related to the subject matter hereof shall be the state and U.S. federal courts located in New Jersey, and both parties consent to the jurisdiction of such courts; provided that without limiting Operator right to seek injunctive or other equitable relief in court.  Either party may elect (by written notice given prior filing a complaint or, in the case of the defendant, prior to answering a complaint) to resolve a dispute by binding arbitration in the English language in New Jersey under the rules of JAMS, and the decision of the arbitrator will be enforceable in any court.  In any action or proceeding to enforce rights under this Agreement, the prevailing party will be entitled to recover costs and attorneys’ fees.
		

		
			 Counterparts.  This Agreement may be executed in one or more counterparts, which shall be effective as original agreements of the Parties executing such counterpart.  Original signatures transmitted by electronic mail or facsimile shall be effective to create such counterparts.
		

		
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			OPERATORRESELLER
		

		
			pdvWireless, Inc.A BEEP, LLC
		

		
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			By:/s/ Brian D. McAuleyBy:/s/ Frank B. Anderson
		

		
			Name: Brian D. McAuleyName: Frank B. Anderson
		

		
			Title: ChairmanTitle: Manager
		

		
			 
		

		
			
		

		 

		

			7

		

		

			 

		

		

			*CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

		

		

			 

		

 

		Exhibit A
		

		
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			Payment to Operator*
		

		
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			System Customers:  
		

			
	
			
				 ·
			

			
	
			
			Pre-Transition Date:  100% of Billed Revenue

			
	
			
				 ·
			

			
	
			
			[*]:  35% of Billed Revenue.

			
	
			
				 ·
			

			
	
			
			[*]

			
	
			
				 o
			

			
	
			
			[*] – 20% of Billed Revenue; and,

			
	
			
				 o
			

			
	
			
			[*] – 20% of [*].

		
			PoC Customers:
		

			
	
			
				 ·
			

			
	
			
			35% of Billed Revenue for [*] after the Effective Date; and

			
	
			
				 ·
			

			
	
			
			15% of Billed Revenue for the [*].

		
			﻿
		

		
			*   Once a Customer account is more than sixty (60) days in arrears, no Payment will be due to Operator unless the Customer subsequently become current at which time the Payment obligation will apply to the Billed Revenue during the period of arrears and thereafter.   In the event the Customer defaults on the payments due, Reseller shall have the right to offset the amount due to Operator to recover the prior Payment to Operator that was never collected by Reseller.   
		

		 

		

			*CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

		

		

			 

		

		

			 

		

 

		
		

		
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			Exhibit B
		

		
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			Geographic Markets & Associated Sites 
		

		
			﻿
		

		
			Atlanta
		

		
			[*]
		

		
			﻿
		

		
			Chicago 
		

		
			[*]
		

		
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			Dallas
		

		
			[*]
		

		
			﻿
		

		
			Houston
		

		
			[*]
		

		
			﻿
		

		
			Phoenix
		

		
			[*]
		

		 

		

			*CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

		

		

			 

		

		

			 

		

 

		
		

		
			Exhibit C
		

		
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			Long-Term Equipment Rental Assets
		

		
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			﻿
		

		
			﻿
		

			
					
						Market

					
					
						No. of Radios

					
					
						Book Value As of 11/30/18

				
	
					
						Atlanta

					
					
						[*]

					$99,130 
				
	
					
						Chicago

					
					
						[*]

					$46,931 
				
	
					
						Dallas

					
					
						[*]

					$66,460 
				
	
					
						Houston

					
					
						[*]

					$8,351 
				
	
					
						Total

					
					
						[*]

					$220,873 
				

		
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			﻿
		

		 

		

			*CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

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