Document:

EX-4.5

 Exhibit 4.5 

English translation 
 Addendum 1

 dated 21 April 2020 

to 
 Syndicated Loan Agreement

 dated 12 July 2018 

between 
 Chelyabinsk
Metallurgical Plant Public Joint-Stock Company 
 as Borrower 

VTB Bank (public joint-stock company) 

as Credit Manager and Pledge Manager 

and 
 VTB Bank (public
joint-stock company) and 
 VTB Bank (Europe) SE 

as Initial Creditors 

 Contents 
  

							
	 	 	 	  	Page	 
	 1.
	 	DEFINITIONS	  	 	2	 
			
	 2.
	 	AMENDMENT AND RESTATEMENT	  	 	5	 
			
	 3.
	 	CONDITIONS PRECEDENT	  	 	6	 
			
	 4.
	 	CONDITIONS SUBSEQUENT	  	 	6	 
			
	 5.
	 	REPRESENTATIONS AND WARRANTIES	  	 	9	 
			
	 6.
	 	AMENDMENT FEE	  	 	10	 
			
	 7.
	 	GENERAL	  	 	10	 
		
	 SCHEDULE 1 CONDITIONS PRECEDENT
	  	 	11	 
		
	 SCHEDULE 2 CONDITIONS SUBSEQUENT
	  	 	14	 
		
	 SCHEDULE 3 AMENDED AND RESTATED AGREEMENT
	  	 	20	 

  
 (i) 

 THIS ADDENDUM 1 (the “Addendum”) is made on 21 April 2020 BETWEEN: 

 

	(1)	 Chelyabinsk Metallurgical Plant Public Joint-Stock Company, a company incorporated under the laws of the
Russian Federation and registered in the Unified State Register of Legal Entities of the Russian Federation under number (PSRN (primary state registration number)): 1027402812777, with its registered address at 14, 2nd Paveletskaya Street,
Chelyabinsk, 454047, Russian Federation, represented by Ponomarev Andrey Alexandrovich, the chief executive officer of Mechel-Steel Management Company LLC, acting on the basis of the agreement on delegation of powers and authorities of the
executive body dated 1 June 2012 (the “Borrower”); 

  

	(2)	 CREDIT INSTITUTIONS listed in Appendix 1 to the Agreement (as defined below) as creditors (the
“Initial Creditors”); 

  

	(3)	 VTB Bank (public joint-stock company), general license of the Central Bank of the Russian Federation
No. 1000, as credit manager (the “Credit Manager”); and 

  

	(4)	 VTB Bank (public joint-stock company) as pledge manager (the “Pledge Manager”),

 together referred to as the “Parties”. 

WHEREAS: 
  

	(A)	 The Parties executed the Agreement (as defined below) pursuant to which the Initial Creditors provided to the
Borrower the Credit in the amount of 896,734,332 Euro. 

  

	(B)	 The powers of VTB Bank (public joint-stock company) as trustee under the laws of England were terminated
as of 21 February 2020. 

  

	(C)	 The Parties agreed to amend and restate the Agreement on and subject to the terms of this Addendum.

 IT IS AGREED as follows: 
  

	1.	 DEFINITIONS 

  

	1.1	 Unless defined otherwise herein, all capitalised terms used in this Addendum will have the meanings given to
them in the Agreement (as defined below), and the following terms shall have the following meanings: 

 Related Pledge
Agreements means the following pledges executed or to be executed between the Bank and Mechel PJSC to secure Southern Kuzbass PJSC’s obligations under the SK Facility Agreement: 

 

	 	(a)	 a second ranking share pledge agreement in relation to twenty five (25) per cent. of ordinary shares plus
one (1) ordinary share in Mechel-Mining JSC; and 

  

	 	(b)	 a second ranking share pledge agreement in relation to twenty five (25) per cent. of ordinary shares plus
one (1) ordinary share in BMK JSC. 

 End Date means: 

 

	 	(a)	 31 December 2021; or 

 

	 	(b)	 if the insolvency moratorium as declared by the 428 Resolution and applicable to any of the Liable parties is
extended by 6 months or more as a result of changes in the 428 Resolution or he enactment of a replacement statutory instrument, 31 December 2022. 

Restructuring Date has the meaning given to it in Clause 3.1 hereof. 

  
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 Agreement on pledge of shares of Mechel-Mining JSC means a second ranking share
pledge agreement in relation to thirty seven point five (37.5) per cent. of ordinary shares plus one (1) ordinary share in Mechel-Mining JSC entered into between the Pledge Manager and Mechel PJSC on or around the date of this Addendum and
incorporating an undertaking to be liable for the Borrower’s obligations on the terms of the 2020 Agreement. 
 SK Suretyship
means a suretyship agreement entered into by the Bank and Mechel PJSC on or around the date of this Addendum to secure Southern Kuzbass PJSC’s obligations under the SK Facility Agreement. 

Addendum to Agreement on pledge of shares of Yakutugol JSHC means an addendum to each of the Agreements on pledge of shares of Yakutugol
JSHC entered into between the Pledge Manager and Mechel-Mining JSC on or around the date of this Addendum and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of the 2020 Agreement. 

Addendum to Agreement on pledge of shares of PJSC Korshunovsky GOK means an addendum to the Agreement on pledge of shares of PJSC
Korshunovsky GOK entered into between the Pledge Manager and Mechel-Mining JSC on or around the date of this Addendum and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of the 2020 Agreement. 

Addendum to Agreement on pledge of shares of Southern Kuzbass PJSC means an addendum to each of the Agreements on pledge of shares of
Southern Kuzbass PJSC entered into between the Pledge Manager and Mechel-Mining JSC on or around the date of this Addendum and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of the 2020 Agreement. 

Addendum to Suretyship of Mechel-Mining JSC means an addendum to the Suretyship to which Mechel-Mining JSC is a party entered
into between the Credit Manager and Mechel-Mining JSC on or around the date of this Addendum and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of the 2020 Agreement without limitation of the surety’s
liability. 
 Addendum to Suretyship of Yakutugol JSHC means an addendum to the Suretyship to which Yakutugol JSHC is a party entered
into between the Credit Manager and Yakutugol JSHC on or around the date of this Addendum and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of the 2020 Agreement without limitation of the surety’s
liability. 
 Addendum to Suretyship of BFP LLC means an addendum to the Suretyship to which BFP LLC is a party entered into between
the Credit Manager and BFP LLC on or around the date of this Addendum and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of the 2020 Agreement without limitation of the surety’s liability. 

Addendum to Suretyship of Mechel-Service LLC means an addendum to the Suretyship to which Mechel-Service LLC is a party entered
into between the Credit Manager and Mechel-Service LLC on or around the date of this Addendum and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of the 2020 Agreement without limitation of the
surety’s liability. 
 Addendum to Suretyship of Mechel-Trans LLC means an addendum to the Suretyship to which
Mechel-Trans LLC is a party entered into between the Credit Manager and Mechel-Trans LLC on or around the date of this Addendum and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of the 2020 Agreement
without limitation of the surety’s liability. 

  
 3 

 Addendum to Suretyship of Korshunovsky GOK PJSC means an addendum to the Suretyship
to which Korshunovsky GOK PJSC is a party entered into between the Credit Manager and Korshunovsky GOK PJSC on or around the date of this Addendum and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of the
2020 Agreement up to four billion four hundred sixty nine million four hundred eighty five thousand (4,469,485,000) Rubles. 
 Addendum to
Suretyship of Mechel PJSC means an addendum to the Suretyship to which Mechel PJSC is a party entered into between the Credit Manager and Mechel PJSC on or around the date of this Addendum and incorporating an undertaking to be liable for the
Borrower’s obligations on the terms of the 2020 Agreement. 
 Addendum to Suretyship of Urals Stampings Plant PJSC means an
addendum to the Suretyship to which Urals Stampings Plant PJSC is a party entered into between the Credit Manager and Urals Stampings Plant PJSC on or around the date of this Addendum and incorporating an undertaking to be liable for the
Borrower’s obligations on the terms of the 2020 Agreement up to three billion five hundred eighty five million eight hundred eighty one thousand one hundred twenty nine (3,585,881,129) Rubles. 

Addendum to Suretyship of Southern Kuzbass PJSC means an addendum to the Suretyship to which Southern Kuzbass PJSC is a party entered
into between the Credit Manager and Southern Kuzbass PJSC on or around the date of this Addendum and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of the 2020 Agreement without limitation of the
surety’s liability. 
 SK Facility Agreement means facility agreement No. 5041 entered into by Southern Kuzbass PJSC and the
Bank on or around the date of this Addendum 1. 
 New Financial Documents means: 

 

	 	(a)	 the Agreement on pledge of shares of the Borrower; 

 

	 	(b)	 the Agreement on pledge of shares of PJSC Urals Stampings Plant; 

 

	 	(c)	 the Agreement on pledge of shares of Mechel-Mining JSC; 

 

	 	(d)	 the Addendum to Agreement on pledge of shares of Yakutugol JSHC; 

 

	 	(e)	 the Addendum to Agreement on pledge of shares of PJSC Korshunovsky GOK; 

 

	 	(f)	 the Addendum to Agreement on pledge of shares of Southern Kuzbass PJSC; 

 

	 	(g)	 the Addendum to Suretyship of Mechel-Mining JSC; 

 

	 	(h)	 the Addendum to Suretyship of Yakutugol JSHC; 

 

	 	(i)	 the Addendum to Suretyship of BFP LLC; 

 

	 	(j)	 the Addendum to Suretyship of Mechel-Service LLC; 

 

	 	(k)	 the Addendum to Suretyship of Mechel-Trans LLC; 

 

	 	(l)	 the Addendum to Suretyship of Korshunovsky GOK PJSC; 

 

	 	(m)	 the Addendum to Suretyship of Mechel PJSC; 

 

	 	(n)	 the Addendum to Suretyship of Urals Stampings Plant PJSC; 

 

	 	(o)	 the Addendum to Suretyship of Southern Kuzbass PJSC; 

  
 4 

	 	(p)	 the Confirmation of Guarantee; and 

 

	 	(q)	 an addendum to the Suretyship to which Mechel PJSC is a party to be executed under paragraph 5 of Schedule 2
(Conditions Subsequent) hereto. 

 Restructuring Cancellation has the meaning given to it in Clause 4.3
hereof. 
 428 Resolution means resolution No. 428 dated 3 April 2020 of the Government of the Russian Federation “On
insolvency moratorium in relation to certain debtors”. 
 Agreement means the syndicated loan agreement between the Parties dated
12 July 2018, as in effect prior to the Restructuring Date. 
 2020 Agreement means the Agreement as amended and restated so
that, with effect from the Restructuring Date, it shall be read and construed as set out in Schedule 3 (Amended and Restated Agreement). 

Confirmation of Guarantee means a letter of confirmation of guarantee executed between the Credit Manager and the Guarantor to confirm
the effectiveness of the Guarantee in connection with the execution of the 2020 Agreement. 
  

	2.	 AMENDMENT AND RESTATEMENT 

 

	2.1	 The Parties intend to amend and restate the Agreement as set out in Schedule 3 (Amended and Restated
Agreement) on and subject to the terms of this Addendum. 

  

	2.2	 The Parties agree that, with effect from the Restructuring Date (inclusive): 

 

	 	2.2.1	 any and all rights and obligations of the Parties under the Agreement shall be deemed to be amended as provided
for by the 2020 Agreement and that any and all provisions of the 2020 Agreement shall apply to all rights and obligations of the Parties under the Agreement arising on or after the Restructuring Date; and 

 

	 	2.2.2	 the provisions of the 2020 Agreement relating to the manner and dates of repayment of the Credit as set out in
clause 7 (Repayment of Credit) of the 2020 Agreement shall apply to relations between the Parties with effect from 5 April 2020. 

  

	2.3	 The Parties acknowledge that: 

 

	 	2.3.1	 the provisions of the Agreement as in effect prior to the Restructuring Date shall apply to any rights and
obligations of the Parties arising under or in connection with the Agreement prior to the Restructuring Date, and, in particular, any and all obligations and liabilities of the Borrower arising prior to the Restructuring Date shall be performed and
discharged by the Borrower on and subject to the terms of the Agreement as in effect prior to the Restructuring Date, unless the Addendum or the 2020 Agreement provides otherwise; 

 

	 	2.3.2	 any and all obligations and liabilities duly discharged by the Parties under or in connection with the
Agreement as in effect prior to the Restructuring Date, including, without limitation, any obligation to pay fees and commissions as required by the Agreement, shall be deemed by the Parties to have been duly performed and discharged and not subject
to reinstatement. 

  
 5 

	3.	 CONDITIONS PRECEDENT 

 

	3.1	 The rights and obligations of the Parties as provided for by Clause 2 (Amendment and Restatement) hereof
shall arise, and the 2020 Agreement shall become effective, with effect from the date (the “Restructuring Date”) on which the Credit Manager delivers to the Borrower, by hand or registered mail with schedule of enclosures (return
receipt requested), a confirmation in writing (with a copy by email to corpfin@mechel.com and eshaposhnikova@mechel.ru) that all conditions set out in Schedule 1 (Conditions Precedent) hereto have been fulfilled to the satisfaction of the
Credit Manager, and that all of the documents and other evidence listed in Schedule 1 (Conditions Precedent) hereto, in form and substance satisfactory to the Credit Manager, have been provided to the Credit Manager (the
“Restructuring Conditions”). The Credit Manager shall deliver such confirmation to the Borrower within three (3) Business Days from the fulfillment of the last Restructuring Condition to the satisfaction of the Credit Manager
(acting reasonably). 

  

	3.2	 The confirmation referred to in Clause 3.1 above shall be deemed to have been duly delivered to the Borrower
upon the receipt of its hard copy by the Borrower, even if a copy of such confirmation has not been received by the Borrower to the above email addresses as set out in Clause 3.1. The Borrower shall be fully liable for any disclosure of confidential
information as a result of the delivery of a notice/communication by email or the receipt of such information by an unauthorized person, and the Borrower shall not have any claim against the Financing Parties in case of any such disclosure.

  

	3.3	 The Credit Manager may, if so instructed in accordance with a Decision of the Majority of Creditors, waive any
of the Restructuring Conditions. 

  

	4.	 CONDITIONS SUBSEQUENT 

 

	4.1	 The Borrower shall, within the term provided for by this Addendum, fulfill all conditions subsequent as set out
in Schedule 2 (Conditions Subsequent) hereto (the “Conditions Subsequent”) and deliver to the Credit Manager all relevant documents and other evidence, in form and substance satisfactory to the Credit Manager. The Credit
Manager may, provided that the Credit Manager is so instructed in accordance with a Decision of the Majority of Creditors, waive any of the Conditions Subsequent. 

 

	4.2	 The Parties agree that if: 

 

	 	4.2.1	 any of the Conditions Subsequent set out in paragraphs 1-3, 5 and 7 of Schedule 2 (Conditions
Subsequent) hereto is not satisfied; 

  

	 	4.2.2	 within the first or the second 75-day period as provided for by
paragraph 4 of Schedule 2 (Conditions Subsequent) hereto: 

  

	 	(a)	 it is not procured that a general shareholders’ meeting of Mechel PJSC is convened and held and that the
agenda of such meeting includes the approval (ratification) of the following transactions by the shareholders: 

  

	 	(i)	 the Addendum to Suretyship of Mechel PJSC; 

 

	 	(ii)	 the Agreement on pledge of shares of the Borrower; 

 

	 	(iii)	 the Agreement on pledge of shares of PJSC Urals Stampings Plant; 

 

	 	(iv)	 the Agreement on pledge of shares of Mechel-Mining JSC; 

  
 6 

	 	(v)	 an addendum to the Suretyship to which Mechel PJSC is a party, accordingly, without limitation of the
surety’s liability or with the surety’s liability being limited (in addition to the SK Suretyship and other suretyship agreements between Mechel PJSC and the Bank securing obligations under facility agreements entered into between the
Mechel Group companies and the Bank (including as facility agent) and existing as at date of this Addendum) to 49.99% of the book value of Mechel PJSC’s assets on the basis of its financial statements as at the latest reporting date
immediately preceding the date of the pledge agreements referred to in (ii)-(iv) above, less the higher of the then effective book value and the market value (as determined on the basis of an independent appraiser’s report) of those shares in
the Borrower, Urals Stampings Plant PJSC and Mechel-Mining JSC that are pledged under the pledge agreements specified in (ii) – (iv) above and those shares in Mechel-Mining JSC and BMK JSC that are pledged under the Related Pledge Agreements;
and 

  

	 	(b)	 no original copy/notarized copy of (an excerpt from) the resolution or minutes of the general
shareholders’ meeting of Mechel PJSC and the report on voting results of the general shareholders’ meeting of Mechel PJSC are delivered evidencing that the agenda of the relevant meeting included the shareholders’ approval
(ratification) of the transactions specified in (a) above and that such transactions were or were not so approved (ratified) by the shareholders; or 

  

	 	4.2.3	 within one hundred (100) calendar days from the date of this Addendum: 

 

	 	(a)	 any of the security documents to be executed between any of the Mechel Group companies and any of the VTB Group
companies, excluding: 

  

	 	(i)	 security documents being New Financial Documents; 

 

	 	(ii)	 any security documents relating to the facility agreements specified in paragraphs 3.2.1(a) and 3.2.1(b) and
paragraph 3.3.1 of Schedule 1 (Conditions Precedent) hereto); or 

  

	 	(iii)	 any security documents relating to the SK Facility Agreement, 

has not been duly executed; or 
  

	 	(b)	 documents evidencing that the relevant resolutions approving (ratifying) such security documents (excluding
resolutions in relation to security documents referred to in (i) – (iii) of paragraph (a) above, have not been delivered, 

then, provided that the Credit Manager is so instructed in accordance with a Decision of the Majority of Creditors, the Credit Manager may
increase the interest rate that applies in accordance with article 9 (Interest) of the 2020 Agreement, by two (2) per cent. per annum. 
  

	4.3	 The Parties agree that: 

 

	 	4.3.1	 if any of the Conditions Subsequent set out in paragraphs 1 - 5 of Schedule 2 (Conditions Subsequent)
hereto is not satisfied within one hundred and eighty (180) calendar days from the date of this Addendum; 

  

	 	4.3.2	 if the Condition Subsequent set out in paragraph 8 of Schedule 2 (Conditions Subsequent) hereto is not
satisfied; or 

  
 7 

	 	4.3.3	 if the competent management body of Mechel PJSC resolves, at any time during the term of this Addendum, to
approve (ratify) the execution of a surety agreement between Mechel PJSC as surety and Gazprombank (Joint Stock Company) as beneficiary, if the surety’s maximum liability under such surety agreement exceeds the surety’s maximum liability
under the Surety to which Mechel PJSC is a party, unless, within sixty (60) calendar days from the date of such resolution, Mechel PJSC as surety and the Credit Manager as beneficiary execute a surety agreement to secure the Borrower’s
obligations under the Agreement or, accordingly, the 2020 Agreement and the surety’s maximum liability thereunder is equal to the surety’s maximum liability under the abovementioned surety agreement with Gazprombank (Joint Stock Company)
and the Credit Manager is provided with a copy of the resolution of the competent body of Mechel PJSC approving the execution of such surety agreement (in each case, in form and substance satisfactory to the Credit Manager), 

then, provided that a Decision of the Majority of Creditors is made to that effect: 

 

	 	(a)	 rights and obligations of the Parties as provided for by Clause 2 (Amendment and Restatement) hereof and
the 2020 Agreement (including the provisions of Clause 2.2.2 hereof) shall be deemed to have not arisen, and relations between the Parties shall continue to be governed by the Agreement in the form as effective prior to the date of this Addendum
(subject to the provisions of this Addendum to the extent they do not relate to the 2020 Agreement) (the “Restructuring Cancellation”), of which the Credit Manager shall notify the Borrower in writing; and/or

  

	 	(b)	 the Credit Manager shall be entitled to increase the interest rate that applies in accordance with article 9
(Interest) of the Agreement or, accordingly, the 2020 Agreement, by two (2) per cent. per annum. 

  

	4.4	 The Parties agree that, if any Liable party is or becomes subject to an insolvency moratorium declared by the
Government of the Russian Federation and bankruptcy proceedings are initiated against such Liable party during the term of such moratorium or within three (3) months from the end date of such moratorium or within any other term specified in the
Bankruptcy Law, where the Bankruptcy Law provides for specific legal consequences as listed therein to be applied in case bankruptcy proceedings are initiated within such term against debtors who used to be subject to a moratorium, or this Addendum
or any New Financial Document is held invalid, then, provided that a Decision of the Majority of Creditors is made to that effect, the Credit Manager may notify the Borrower in writing of the Restructuring Cancellation. 

 

	4.5	 The Financing Parties may effect the Restructuring Cancellation on the grounds set out in Clauses 4.3 and 4.4
above on or before the End Date. Any notice of the Restructuring Cancellation delivered after the End Date shall have no effect. An increase by the Credit Manager of the interest rate in accordance with Clauses 4.2 and/or 4.3 above shall not result
in the Financing Parties losing their right to subsequently effect the Restructuring Cancellation in accordance with Clauses 4.3 and 4.4, provided that the Credit Manager shall deliver a notice of the Restructuring Cancellation in writing on or
before the End Date. 

  

	4.6	 The interest rate shall be deemed to be increased in accordance with Clause 4.2 or Clause 4.3 above without
executing any further addendum. The Credit Manager shall deliver to the Borrower, by hand or registered mail with schedule of enclosures (return receipt requested), a notice in writing (in any form) of the increase of the interest rate.

  

	4.7	 A copy of the notice referred to in Clause 4.6 above shall be delivered within five (5) Business Days from
the date the relevant notice was sent by email to corpfin@mechel.com and eshaposhnikova@mechel.ru. The Borrower shall be deemed to be duly notified of the increase 

  
 8 

	 	
of the interest rate upon the receipt of such notice referred to in Clause 4.6 above, even if a copy of such notice was not received by the Borrower by email, as required by this Clause. The
Borrower agrees to be fully liable for any disclosure of confidential information where such disclosure has occurred as a result of the transmission of such notice/communication by email or the receipt of such information by an unauthorized person,
and the Borrower shall not make any claim against the Financing Parties in connection with any such liability. 

  

	4.8	 The interest rate as increased in accordance with Clause 4.2 or Clause 4.3 above shall apply from the first day
of the calendar month immediately following the calendar month in which a notice referred to in Clause 4.6 above was received by the Borrower from the Credit Manager, to: 

 

	 	4.8.1	 (unless such breach is remedied or the Credit Manager notifies the Borrower of its waiver of such breach, in
each case, in the calendar month in which the Borrower receives from the Credit Manager the notice referred to in Clause 4.6 above) the last day (inclusive) of the calendar month in which the relevant breach was remedied or in which the Credit
Manager notified the Borrower of the waiver of such breach; or 

  

	 	4.8.2	 (if such breach is remedied or the Credit Manager notifies the Borrower of its waiver of such breach, in each
case, in the calendar month in which the Borrower receives from the Credit Manager the notice referred to in Clause 4.6 above or earlier) the last day (inclusive) of the calendar month immediately following the calendar month in which the Borrower
received from the Credit Manager the notice referred to in Clause 4.5 above. 

  

	4.9	 Where more than one event occur entitling the Credit Manager to increase the interest rate under Clause 4.2 and
Clause 4.3 above, the interest rate may only be increased in relation to one such event (i.e. the interest rate may not be increased by more than two (2) per cent.). 

 

	4.10	 In case of the Restructuring Cancellation in accordance with Clause 4.3 and Clause 4.4, the effectiveness and
termination of the New Financial Documents shall be regulated by the terms thereof. 

  

	4.11	 If it is required to terminate any New Financial Document in accordance with its terms, the Borrower shall,
within the term specified in the Credit Manager’s request, pay any and all documented costs and expenses incurred by the Credit Manager and/or the Pledge Manager (including legal costs pre-agreed with the
Borrower as incurred in connection with the engagement of legal advisers pre-agreed with the Borrower) in connection with such termination. 

 

	5.	 REPRESENTATIONS AND WARRANTIES 

 

	5.1	 The Borrower makes representations in the terms of representations set out in article 16 (Representations
about circumstances) of the 2020 Agreement to the Financing Parties on the date of the Addendum and the Restructuring Date, by reference to the facts and circumstances then existing and as if references in article 16 (Representations about
circumstances) of the Agreement to “Financing Documents” incorporated a reference to this Addendum and, as at the Restructuring Date, the 2020 Agreement. 

 

	5.2	 Such representations are material to the Financing Parties, and the Financing Parties are entering into this
Addendum on the basis of and in reliance on the accuracy of each of such representations. 

  
 9 

	6.	 AMENDMENT FEE 

 

	6.1	 The Borrower shall pay to the Credit Manager (for the account of the Initial Creditors) a restructuring fee in
the amount of: 

  

	 	6.1.1	 zero point five (0.5) per cent. of the amount of the Euro-Denominated Outstanding Credit as at the date of this
Addendum; and 

  

	 	6.1.2	 zero point four thousand eight hundred fifty eight (0.4858) per cent. of the amount of the Available Facility,
in relation to Tranche C. 

  

	6.2	 The fee specified in Clause 6.1 above shall be paid by the Borrower in equal instalments on each Interest
Payment Date during the period from the Restructuring Date to the date falling twelve (12) months after the Restructuring Date. 

  

	6.3	 For the avoidance of doubt, the restructuring fee shall be paid by the Borrower under this Clause 6, whether or
not the Restructuring Cancellation occurs. 

  

	7.	 GENERAL 

  

	7.1	 The Credit Manager and the Borrower agree that this Addendum and each New Financial Document is a Financial
Document. 

  

	7.2	 The Parties acknowledge that no amendment introduced by the Addendum shall constitute a novation, including for
the purposes of article 414 of the Civil Code. 

  

	7.3	 This Addendum shall remain in full force and effect until all obligations of the Parties under this Addendum
and (subject to the provisions of Clause 4 (Conditions Subsequent) hereof) the 2020 Agreement are duly performed by them in full. 

  

	7.4	 The Borrower agrees to pay the Credit Manager and/or the Pledge Manager the amount of all documented expenses
incurred by any of them to pay for the services of legal and other professional consultants as pre-agreed with the Borrower in connection with the preparation and performance of this Addendum and New Financial
Documents, in accordance with article 15.5 (Expenses on making changes) of the Agreement, provided that such expenses have been pre-agreed with the Borrower. 

 

	7.5	 This Addendum and any rights and obligations of the Parties arising hereunder shall be governed by and
construed in accordance with the laws of the Russian Federation. 

  

	7.6	 Any dispute or controversy arising out of this Addendum shall be resolved in accordance with the provisions of
article 31 (Dispute Resolution) of the Agreement. 

  

	7.7	 The provisions of article 25 (Notices) of the Agreement shall apply to any notice, communication or
correspondence delivered or to be delivered in connection with this Addendum. 

  

	7.8	 This Addendum shall be executed in three (3) original copies, each of which shall be signed by each of the
Parties and which together shall constitute but the same instrument. 

  

	7.9	 This Addendum has been duly executed on the date first written above. 

  
 10 

 SCHEDULE 1 

CONDITIONS PRECEDENT 
  

	1.	 New Financial Documents 

Each of the following documents duly executed by the parties thereto: 
  

	1.1	 this Addendum; 

  

	1.2	 the Agreement on pledge of shares of the Borrower; 

 

	1.3	 the Agreement on pledge of shares of PJSC Urals Stampings Plant; 

 

	1.4	 the Agreement on pledge of shares of Mechel-Mining JSC; 

 

	1.5	 each Addendum to Agreement on pledge of shares of Yakutugol JSHC; 

 

	1.6	 the Addendum to Agreement on pledge of shares of PJSC Korshunovsky GOK; 

 

	1.7	 each Addendum to Agreement on pledge of shares of Southern Kuzbass PJSC; 

 

	1.8	 the Addendum to Suretyship of Mechel-Mining JSC; 

 

	1.9	 the Addendum to Suretyship of Yakutugol JSHC; 

 

	1.10	 the Addendum to Suretyship of BFP LLC; 

 

	1.11	 the Addendum to Suretyship of Mechel-Service LLC; 

 

	1.12	 the Addendum to Suretyship of Mechel-Trans LLC; 

 

	1.13	 the Addendum to Suretyship of Southern Kuzbass PJSC; 

 

	1.14	 the Addendum to Suretyship of Korshunovsky GOK PJSC; 

 

	1.15	 the Addendum to Suretyship of Mechel PJSC; 

 

	1.16	 the Addendum to Suretyship of Urals Stampings Plant PJSC; and 

 

	1.17	 the Confirmation of Guarantee. 

 

	2.	 Corporate Approvals and Perfection of Security 

 

	2.1	 An original or notarized copy and an apostilled copy of the minutes of the meeting of the board of directors of
the Guarantor and the minutes of the general shareholders’ meeting of the Guarantor approving the terms, and the execution, delivery and performance, of the Confirmation of Guarantee in accordance with applicable law and/or the Guarantor’s
constituent documents. 

  

	2.2	 An up-to-date statement of the
relevant Pledgor’s deposit account with the Depositary evidencing its title to shares pledged under the Agreement on pledge of shares of PJSC Urals Stampings Plant, the Agreement on pledge of shares of the Borrower and the Agreement on pledge
of shares of Mechel-Mining JSC. 

  

	2.3	 A pledge instruction is delivered to the Depositary by the relevant Pledgor instructing the Depositary to:

  

	 	2.3.1	 register the share pledge created under the Agreement on pledge of shares of PJSC Urals Stampings Plant, the
Agreement on pledge of shares of the Borrower and the Agreement on pledge of shares of Mechel-Mining JSC; and 

  
 11 

	 	2.3.2	 make changes to the relevant entry on the share pledge made under each of the Addendum to Agreement on pledge
of shares of Yakutugol JSHC, the Addendum to Agreement on pledge of shares of PJSC Korshunovsky GOK and each of the Southern Kuzbass Surety Addenda. 

  

	2.4	 A statement of the relevant Pledgor’s deposit account with the Depositary evidencing:

  

	 	2.4.1	 the registration of the share pledge in favour of the Pledge Manager as pledgee under the Agreement on pledge
of shares of PJSC Urals Stampings Plant, the Agreement on pledge of shares of the Borrower and the Agreement on pledge of shares of Mechel-Mining JSC; and 

  

	 	2.4.2	 that changes were made to the relevant entry on the share pledge made under each of the Addendum to Agreement
on pledge of shares of Yakutugol JSHC, the Addendum to Agreement on pledge of shares of PJSC Korshunovsky GOK and each of the Southern Kuzbass Surety Addenda. 

 

	3.	 Other documents and evidence 

 

	3.1	 An electronic excerpt from the Unified State Register of Legal Entities of the Russian Federation (with an
electronic signature attached to it) evidencing the sale of a 50.9990202673% interest in the share capital of Elgaugol LLC and a 51% interest in the share capital of Elga-road LLC held by Yakutugol JSHC (the “Elga Sale”), subject to
the consent set out in the letter dated 21 April 2020 from, among others, the Liable Parties to the Bank, as countersigned by the Bank on 21 April 2020 (the “Consent Letter”). 

 

	3.2	 Documents evidencing: 

 

	 	3.2.1	 full repayment of debt under the following facility agreements: 

 

	 	(a)	 non-revolving facility agreement No. 5321 dated 13 October
2010 between the Borrower and Sberbank PJSC; 

  

	 	(b)	 non-revolving facility agreement No. 5703 dated 19 December
2013 between the Borrower and Sberbank PJSC; 

  

	 	(c)	 non-revolving facility agreement No. 5609 dated 20 December
2012 between Mechel Trading AG and Sberbank PJSC; 

  

	 	(d)	 non-revolving facility agreement No. 5624 dated 30 April 2013
between Mechel Trading AG and Sberbank PJSC; 

  

	 	(e)	 facility agreement No.

 dated 7 February 2011 between Southern Kuzbass PJSC and the Bank; 

  

	 	(f)	 facility agreement No. KC-757000/2008/00021 dated 27 November 2008 between Yakutugol JSHC and the Bank;

  

	 	3.2.2	 full repayment of debt under the following facility agreements: 

 

	 	(a)	 non-revolving facility agreement No. 5593 dated 9 October
2012 between Southern Kuzbass PJSC and Sberbank PJSC; 

  

	 	(b)	 non-revolving facility agreement No. 5594 dated 9 October
2012 between Southern Kuzbass PJSC and Sberbank PJSC, 

 in each case, where such debt is repayable in Rubles in
accordance with the terms of such facility agreements. 

  
 12 

	 	3.2.3	 partial repayment of principal debt under facility agreement No. KC-743000/2008/00104 dated 26 November
2008 between Southern Kuzbass PJSC and the Bank in the amount of the Remainder (as defined in the Consent Letter), 

 in
each case, out of the proceeds of the Elga Sale. 
  

	3.3	 There are no outstanding liabilities: 

 

	 	3.3.1	 for principal debt under any of the facility agreements referred to in paragraph 3.2.2 of this Schedule, non-revolving facility agreement No. 8507 dated 9 October 2012 between Southern Kuzbass PJSC and Sberbank PJSC and non-revolving facility agreement No. 8508
dated 9 October 2012 between Southern Kuzbass PJSC and Sberbank PJSC, where such debt is repayable in US Dollars in accordance with the terms of such agreements (excluding payments that were due and payable by the relevant borrower in February
and March 2020); and 

  

	 	3.3.2	 for interest under any facility agreements between any of the Mechel Group companies and any of the VTB Group
companies, 

 other than any outstanding liabilities in respect of which the Credit Manager has notified the Borrower of
the Credit Manager’s waiver of the relevant defaults. 
  

	3.4	 An evidence of payment of all fees, commissions, costs and expenses that are due and payable to the Financing
Parties under this Addendum or any of the New Financial Documents (including legal fees of the Credit Manager’s legal advisers in the amount pre-agreed with the Borrower). 

 

	4.	 Legal opinions 

 

	4.1	 Legal opinion of White & Case LLC, a legal adviser of the Credit Manager, on the Confirmation of
Guarantee being consistent with English law. 

  

	4.2	 Legal opinion of Schellenberg Wittmer LLC, a legal adviser of the Credit Manager, on the Guarantor’s
capacity to execute the Confirmation of Guarantee. 

  
 13 

 SCHEDULE 2 

CONDITIONS SUBSEQUENT 
  

	1.	 Within 30 calendar days from the date of the Addendum, the following documents evidencing the compliance
by the relevant Sureties/Pledgors with the requirements of their constitutional and other internal documents and the law in relation to the approval of transactions, shall have been delivered: 

 

	1.1	 original/notarized copies of (an excerpt from) the resolutions or minutes of the general shareholders’
(participants’) meetings or of the sole shareholder (participant), and, in relation to a joint stock company, the report on voting results of the general shareholders’ meeting or, in relation to a
non-public joint stock company or a limited liability company, the certificate of the existence of a corporate approval and the list of members (composition) of the relevant corporate body who attended the
meeting at which the corporate approval was granted, evidencing that the following agreements have been ratified: 

  

	 	1.1.1	 Yakutugol JSHC 

the Addendum to Suretyship of Yakutugol JSHC as a major transaction; 

 

	 	1.1.2	 Mechel-Mining JSC 

 

	 	(a)	 the Addendum to Agreement on pledge of shares of Yakutugol JSHC, 

 

	 	(b)	 the Addendum to Agreement on pledge of shares of PJSC Korshunovsky GOK, 

 

	 	(c)	 the Addendum to Agreement on pledge of shares of Southern Kuzbass PJSC, 

 

	 	(d)	 the Addendum to Suretyship of Mechel-Mining JSC, 

as a major transaction (series of related transactions); 
  

	 	1.1.3	 Mechel-Trans LLC 

the Addendum to Suretyship of Mechel-Trans LLC as a major transaction; 

 

	 	1.1.4	 Mechel-Service LLC 

the Addendum to Suretyship of Mechel-Service LLC as a major transaction; 

 

	 	1.1.5	 BFP LLC 

the Addendum to Suretyship of BFP LLC as a major transaction which is also an interested-party transaction; 

 

	1.2	 original/notarized copies of (an excerpt from) the minutes of the board meetings, evidencing that the following
agreements have been ratified: 

  

	 	1.2.1	 PJSC Urals Stampings Plant 

the Addendum to Suretyship of Urals Stampings Plant PJSC as an interested-party transaction (series of related transactions) and on the basis
of the requirements for such approval as provided for by the company’s articles; 
  

	 	1.2.2	 PJSC Korshunovsky GOK 

the Addendum to Suretyship of Korshunovsky GOK PJSC as an interested-party transaction (series of related transactions); 

 

	 	1.2.3	 Yakutugol JSHC 

the Addendum to Suretyship of Yakutugol JSHC on the basis of the requirements for its approval as provided for by the company’s articles;

  
 14 

	2.	 Within 65 calendar days from the date of the Addendum, the following documents shall have been delivered
to the Credit Manager: 

  

	2.1	 an original/notarized copy of (an excerpt from) the resolution or minutes of the general shareholders’
meeting of the Borrower and the report on voting results of the general shareholders’ meeting of the Borrower, evidencing that the Addendum has been ratified as a major transaction; and 

 

	2.2	 an original/notarized copy of (an excerpt from) the minutes of the board meeting of the Borrower, evidencing
that the Addendum was approved (ratified) in accordance with the requirements for such approval (ratification) as provided for by the Borrower’s articles. 

 

	3.	 Within 65 calendar days from the date of the Addendum, the following documents shall have been delivered
to the Credit Manager: 

  

	3.1	 an original/notarized copy of (an excerpt from) the resolution or minutes of the general shareholders’
meeting of Southern Kuzbass PJSC and the report on voting results of the general shareholders’ meeting of Southern Kuzbass PJSC, evidencing that the Addendum to Suretyship of Southern Kuzbass PJSC has been ratified as a major transaction which
is also an interested-party transaction; and 

  

	3.2	 an original/notarized copy of (an excerpt from) the minutes of the board meeting of Southern Kuzbass PJSC,
evidencing that the Addendum to Suretyship of Southern Kuzbass PJSC was approved (ratified) in accordance with the requirements for such approval (ratification) as provided for by Southern Kuzbass PJSC’s articles. 

 

	4.	 Mechel PJSC’s Approvals 

 

	4.1	 Within 75 calendar days from the date of the Addendum, the following documents shall have been delivered
to the Credit Manager: 

  

	 	4.1.1	 an original/notarized copy of (an excerpt from) the resolution or minutes of the general shareholders’
meeting of Mechel PJSC and the report on voting results of the general shareholders’ meeting of Mechel PJSC, evidencing that the agenda of such meeting included the approval (ratification) of the following agreements: 

 

	 	(a)	 the Addendum to Suretyship of Mechel PJSC; 

 

	 	(b)	 the Agreement on pledge of shares of the Borrower; 

 

	 	(c)	 the Agreement on pledge of shares of PJSC Urals Stampings Plant; 

 

	 	(d)	 the Agreement on pledge of shares of Mechel-Mining JSC; 

 

	 	(e)	 an addendum to the Suretyship to which Mechel PJSC is a party (in addition to the Addendum to Suretyship of
Mechel PJSC) without limitation of the surety’s liability, 

 as a major transaction (series of related transactions;
taking into account (if applicable) other transactions entered into with the Credit Manager) which is also an interested-party transaction, and that such agreements were or were not so approved (ratified) by the shareholders; and 

 

	 	4.1.2	 an original/notarized copy of (an excerpt from) the minutes of the board meeting of Mechel PJSC, evidencing
that the agreements specified in 4.1.1 above were approved (ratified) in accordance with the requirements for such approval (ratification) as provided for by Mechel PJSC’s articles. 

  
 15 

	4.2	 If Mechel PJSC fails to obtain a corporate approval (ratification) in relation to the relevant transactions as
required by paragraph 4.1 above, the Borrower shall, within the following 75 calendar days, use its best efforts to procure that the competent bodies of Mechel PJSC issue their resolutions approving (ratifying) such transactions and deliver
to the Credit Manager: 

  

	 	4.2.1	 an original/notarized copy of (an excerpt from) the resolution or minutes of the general shareholders’
meeting of Mechel PJSC and the report on voting results of the general shareholders’ meeting of Mechel PJSC, evidencing that the agenda of such meeting included the approval (ratification) of the following agreements: 

 

	 	(a)	 the Addendum to Suretyship of Mechel PJSC (unless it was approved (ratified) as set out in paragraph 4.1.1
above); 

  

	 	(b)	 the Agreement on pledge of shares of the Borrower (unless it was approved (ratified) as set out in paragraph
4.1.1 above); 

  

	 	(c)	 the Agreement on pledge of shares of PJSC Urals Stampings Plant (unless it was approved (ratified) as set out
in paragraph 4.1.1 above); 

  

	 	(d)	 the Agreement on pledge of shares of Mechel-Mining JSC (unless it was approved (ratified) as set out in
paragraph 4.1.1 above); 

  

	 	(e)	 an addendum to the Suretyship to which Mechel PJSC is a party (in addition to the Addendum to Suretyship of
Mechel PJSC) with the surety’s liability being limited (subject to the SK Suretyship and other suretyship agreements between Mechel PJSC and the Bank securing obligations under facility agreements entered into between the Mechel Group companies
and the Bank (including as facility agent) and existing as at date of this Addendum) to 49.99% of the book value of assets of Mechel PJSC on the basis of its financial statements as at the latest reporting date immediately preceding the date of the
pledge agreements referred to in (b)-(d) above, less the higher of the then effective book value and the market value (as determined on the basis of an independent appraiser’s report) of those shares in the Borrower, Urals Stampings Plant PJSC
and Mechel-Mining JSC that are pledged under the pledge agreements specified in (b) – (d) above and those shares in Mechel-Mining JSC and BMK JSC that are pledged under the Related Pledge Agreements, 

as an interested-party transaction (series of related transactions), and that such agreements were or were not so approved (ratified); and

  

	 	4.2.2	 an original/notarized copy of (an excerpt from) the minutes of the board meeting of Mechel PJSC, evidencing
that the agenda of such meeting included the approval (ratification) of the following agreements: 

  

	 	(a)	 the Addendum to Suretyship of Mechel PJSC (unless it was approved (ratified) as set out in paragraph 4.1
above); 

  

	 	(b)	 the Agreement on pledge of shares of the Borrower (unless it was approved (ratified) as set out in paragraph
4.1 above); 

  

	 	(c)	 the Agreement on pledge of shares of PJSC Urals Stampings Plant (unless it was approved (ratified) as set out
in paragraph 4.1 above); 

  
 16 

	 	(d)	 the Agreement on pledge of shares of Mechel-Mining JSC (unless it was approved (ratified) as set out in
paragraph 4.1 above); 

  

	 	(e)	 an addendum to the Suretyship to which Mechel PJSC is a party (in addition to the Addendum to Suretyship of
Mechel PJSC) with the surety’s liability being limited (subject to the SK Suretyship and other suretyship agreements between Mechel PJSC and the Bank securing obligations under facility agreements entered into between the Mechel Group companies
and the Bank (including as facility agent) and existing as at date of this Addendum) to 49.99% of the book value of assets of Mechel PJSC on the basis of its financial statements as at the latest reporting date immediately preceding the date of the
pledge agreements referred to in (b)-(d) above, less the higher of the then effective book value and the market value (as determined on the basis of an independent appraiser’s report) of those shares in the Borrower, Urals Stampings Plant PJSC
and Mechel-Mining JSC that are pledged under the pledge agreements specified in (b) – (d) above and those shares in Mechel-Mining JSC and BMK JSC that are pledged under the Related Pledge Agreements, 

as a major transaction (series of related transactions) and on the basis of the requirements for such approval as provided for by Mechel
PJSC’s articles, and that such agreements were or were not so approved (ratified). 
  

	4.3	 If Mechel PJSC fails to obtain a corporate approval (ratification) in relation to the relevant transactions
from its competent corporate bodies as set out in paragraphs 4.1 and 4.2 above, the Borrower shall, within the following 30 calendar days, procure that the competent corporate body of Mechel PJSC issues its resolution approving (ratifying)
such transactions and deliver to the Credit Manager an original/notarized copy of (an excerpt from) the minutes of the board meeting evidencing that the following agreements have been approved (ratified): 

 

	 	(a)	 the Addendum to Suretyship of Mechel PJSC (unless it was approved (ratified) as set out in paragraphs 4.1 and
4.2 above); 

  

	 	(a)	 the Agreement on pledge of shares of the Borrower (unless it was approved (ratified) as set out in paragraphs
4.1 and 4.2 above); 

  

	 	(b)	 the Agreement on pledge of shares of PJSC Urals Stampings Plant (unless it was approved (ratified) as set out
in paragraphs 4.1 and 4.2 above); 

  

	 	(c)	 the Agreement on pledge of shares of Mechel-Mining JSC (unless it was approved (ratified) as set out in
paragraphs 4.1 and 4.2 above); 

  

	 	(d)	 an addendum to the Suretyship to which Mechel PJSC is a party (in addition to the Addendum to Suretyship of
Mechel PJSC) with the surety’s liability being limited (subject to the SK Suretyship and other suretyship agreements between Mechel PJSC and the Bank securing obligations under facility agreements entered into between the Mechel Group companies
and the Bank (including as facility agent) and existing as at date of this Addendum) to 49.9% of the book value of assets of Mechel PJSC on the basis of its financial statements as at the latest reporting date immediately preceding the date of the
pledge agreements referred to in (b)-(d) above, less the higher of the then effective book value and the market value (as determined on the basis of an independent appraiser’s report) of those shares in the Borrower, Urals Stampings Plant PJSC
and Mechel-Mining JSC that are pledged under the pledge agreements specified in (b) – (d) above and those shares in Mechel-Mining JSC and BMK JSC that are pledged under the Related Pledge Agreements, 

  
 17 

 as an interested-party transaction (series of related transactions) and on the basis of the
requirements for such approval as provided for by the company’s articles. 
  

	5.	 Within 10 calendar days from the date of the relevant resolution of the general shareholders’
meeting of Mechel PJSC or the board of directors of Mechel PJSC approving the transactions under paragraph 4 above, the Borrower shall procure the execution of an addendum to the Surety to which Mechel PJSC is a party (in addition to the Addendum to
Suretyship of Mechel PJSC), incorporating the surety’s undertaking to be liable for the Borrower’s obligations under the 2020 Agreement: 

  

	 	(a)	 without limitation of the surety’s liability, if such resolution approving the relevant transaction is
made at the first general shareholders’ meeting of Mechel PJSC; 

  

	 	(b)	 with the surety’s liability being limited as set out in paragraph 4.2 above, if such resolution approving
the relevant transaction is made at the second general shareholders’ meeting of Mechel PJSC; or 

  

	 	(c)	 with the surety’s liability being limited as set out in paragraph 4.3 above, if such resolution approving
the relevant transaction is not made at the second general shareholders’ meeting of Mechel PJSC as provided for by paragraph 4.2 above. 

  

	6.	 Within five (5) calendar days from the date of the latest of the resolutions
approving (ratifying) the relevant transactions as provided for by this Schedule, but in any even within 108 calendar days from the date of this Addendum, a legal opinion in relation to this Addendum and the Russian
law-governed New Financial Documents being in conformity with the Russian law and the capacity of the relevant Liable Parties to execute this Addendum and such New Financial Documents, shall have been
delivered to the Credit Manager, provided that such legal opinion shall be prepared by: 

  

	 	(a)	 White & Case LLP, a legal adviser of the Credit Manager; or 

 

	 	(b)	 if for any reason such legal opinion may not be prepared by White & Case LLP when required, any of the
following legal firms engaged by the Borrower: 

  

	 	(i)	 Clifford Chance; 

  

	 	(ii)	 Herbert Smith Freehills; 

 

	 	(iii)	 Allen&Overy; 

  

	 	(iv)	 Linklaters, 

provided that such legal opinion shall be addressed to the Credit Manager and shall be satisfactory to the Credit Manager in form and
substance. 
  

	7.	 The Borrower shall procure that the Mechel Group companies exercise their respective corporate rights in
relation to the Liable Parties and vote at general shareholders’/participants’ meetings of the Liable Parties or do any other acts and make any other decisions within their control as may be required to: 

 

	 	(a)	 terminate, within one hundred and twenty (120) calendar days from the Restructuring Date, the authorities
of Khachaturov Tigran Garikovich, Darbinyan Minas Arsenovich, Shakina Anastasiya Sergeevna, Pravdina Daria Alexandrovna and Dun Ivan Ivanovich as members of the boards of directors of all Liable Parties; and 

  
 18 

	 	(b)	 ensure that there are no nominees of any Other Senior Creditors or any of their affiliates or any creditor of
the Liable Parties under the Financial Debt sitting on the board of directors of any of the Liable Parties, unless such persons are elected to the board of directors of Mechel PJSC upon their nomination by minority shareholders of Mechel PJSC who,
under applicable law, may make nominations to the board of directors, provided that the Liable parties shall do all in their power to ensure that other shareholders in Mechel PJSC cast their votes for the candidates included in the voting ballot
other than any candidate nominated by such minority shareholder. 

  

	8.	 Within 45 calendar days from the date of the Addendum, an original or notarized copy of the Russian
translation (bearing the translator’s signature as certified by a notary public) of each of the documents delivered to the Credit Manager under paragraph 2.1 of Schedule 1 (Conditions Precedent), shall have been delivered to the Credit
Manager. 

  
 19 

 SCHEDULE 3 

AMENDED AND RESTATED AGREEMENT 

<the document is set out on the next page> 

  
 20 

 Syndicated Loan Agreement 

dated 12 July 2018 
 between

 Chelyabinsk Metallurgical Plant Public Joint-Stock Company 

as Borrower 
 VTB Bank (public
joint-stock company) 
 as Credit Manager and Pledge Manager 

and 
 VTB Bank (public
joint-stock company) and 
 VTB Bank (Europe) SE 

as Initial Creditors 
 as
amended and restated by 
 addendum 1 

dated 21 April 2020 

  
 21 

 TABLE OF CONTENTS     

 

							
	Article	 	 	  	Page	 
	 1.
	 	 DEFINITIONS
	  	 	24	 
			
	 2.
	 	 SCOPE OF THE AGREEMENT
	  	 	47	 
			
	 3.
	 	 PURPOSE
	  	 	48	 
			
	 4.
	 	 TERMS OF CREDIT
	  	 	49	 
			
	 5.
	 	 ALLOCATION OF CREDIT
	  	 	51	 
			
	 6.
	 	 DISCHARGE OF THE CREDITOR’S OBLIGATION
	  	 	51	 
			
	 7.
	 	 REPAYMENT OF CREDIT
	  	 	51	 
			
	 8.
	 	 EARLY REPAYMENT AND REFUSAL OF THE CREDIT
	  	 	52	 
			
	 9.
	 	 INTEREST
	  	 	56	 
			
	 10.
	 	 INTEREST PERIODS
	  	 	59	 
			
	 11.
	 	 CHANGES IN THE INTEREST CALCULATION PROCEDURE
	  	 	59	 
			
	 12.
	 	 REMUNERATION OF THE FINANCING PARTIES
	  	 	60	 
			
	 13.
	 	 TAXES
	  	 	61	 
			
	 14.
	 	 ADDITIONAL EXPENSES
	  	 	66	 
			
	 15.
	 	 REIMBURSEMENT
	  	 	67	 
			
	 16.
	 	 REPRESENTATIONS OF CIRCUMSTANCES
	  	 	68	 
			
	 17.
	 	 OBLIGATIONS TO PROVIDE INFORMATION
	  	 	71	 
			
	 18.
	 	 GENERAL OBLIGATIONS AND OBLIGATIONS TO COMPLY WITH FINANCIAL INDICATORS
	  	 	77	 
			
	 19.
	 	 ACCOUNTS
	  	 	88	 
			
	 20.
	 	 EVENTS OF DEFAULT
	  	 	88	 
			
	 21.
	 	 LOAN COLLATERAL
	  	 	94	 
			
	 22.
	 	 CHANGE OF THE PARTIES
	  	 	98	 
			
	 23.
	 	 FINANCING PARTIES
	  	 	101	 
			
	 24.
	 	 PAYMENT MECHANISM
	  	 	105	 
			
	 25.
	 	 NOTICES
	  	 	107	 
			
	 26.
	 	 SEVERABILITY
	  	 	109	 
			
	 27.
	 	 MODIFICATION OF THE AGREEMENT AND THE CREDITORS’ WAIVER
	  	 	109	 
			
	 28.
	 	 RESCISSION OF THE AGREEMENT
	  	 	110	 
			
	 29.
	 	 CONFIDENTIALITY
	  	 	110	 
			
	 30.
	 	 APPLICABLE LAW
	  	 	112	 
			
	 31.
	 	 DISPUTE RESOLUTION
	  	 	112	 
			
	 32.
	 	 CONTRACTUAL RECOGNITION OF FORCED RESTRUCTURING
	  	 	113	 
			
	 33.
	 	 EXECUTION
	  	 	113	 

  
 22 

							
	Appendices	  	Page	 
	 1.
	 	 LIST OF INITIAL CREDITORS AND AVAILABLE FACILITY FOR TRANCHE A, TRANCHE B, TRANCHE C AND
TRANCHE D
	  	 	114	 
			
	 2.
	 	 REPAYMENT SCHEDULE
	  	 	115	 
			
	 3.
	 	 CONDITIONS PRECEDENT TO LOAN
	  	 	123	 
			
	 4.
	 	 CONDITIONS SUBSEQUENT
	  	 	131	 
			
	 5.
	 	 FORM OF A DISBURSEMENT REQUEST
	  	 	134	 
			
	 6.
	 	 MODEL FORM OF AN AGREEMENT OF ASSIGNMENT OF THE CREDITOR’S RIGHTS
	  	 	135	 
			
	 7.
	 	 FORM OF A CERTIFICATE OF CONFORMITY
	  	 	143	 
			
	 8.
	 	 DATA ON THE STATUS OF THE FINANCIAL AND BUSINESS ACTIVITY
	  	 	144	 
			
	 9.
	 	 LIST OF BREACHES AND CIRCUMSTANCES TO BE REVIEWED FOR THE PURPOSE OF EXTENSION
	  	 	145	 
			
		 	 Signatures of the Parties
	  			
			
		 	 Signatures of the Parties
	  	 	154	 

  
 23 

 THIS SYNDICATED LOAN AGREEMENT (Agreement) was executed on July 12, 2018 and amended and
restated by addendum 1 dated April 21, 2020, and made BETWEEN: 
  

	(1)	 Chelyabinsk Metallurgical Plant Public Joint-Stock Company established in accordance with the Law of the
Russian Federation and registered in the Unified State Register of Legal Entities of the Russian Federation, primary state registration number: 1027402812777, located at 14, 2nd Paveletskaya Street, Chelyabinsk, 454047, Russian Federation,
represented by Ponomarev Andrey Alexandrovich, the chief executive officer of Mechel-Steel Management Company LLC, acting on the basis of the agreement on delegation of powers and authorities of the executive body dated 1 June 2012
(hereinafter referred to as the Borrower or CMP PJSC); 

  

	(2)	 CREDIT ORGANIZATIONS listed in Appendix 0 as creditors (hereinafter – Initial Creditors);

  

	(3)	 VTB Bank (public joint-stock company), general license of the Central Bank of the Russian Federation
No. 1000, as the credit manager (Credit Manager); and 

  

	(4)	 VTB Bank (public joint-stock company) as the pledge manager (Pledge Manager).

 THE PARTIES AGREE AS FOLLOWS: 
  

	1.	 DEFINITIONS 

  

	1.1	 Terms 

Throughout this Agreement: 

Mechel-Mining JSC means Mechel-Mining Joint-Stock Company, a legal entity established in accordance with the Law of the Russian
Federation and registered in the Unified State Register of Legal Entities of the Russian Federation, primary state registration number: 1085406013846, legal address: 1, Krasnoarmeyskaya Street, office 145, Moscow, 125167, Russian Federation 

Yakutugol JSHC means Yakutugol Joint-Stock Holding Company, a legal entity established in accordance with the Law of the Russian
Federation and registered in the Unified State Register of Legal Entities of the Russian Federation, primary state registration number: 1021401009057, legal address: bld. 1, 3 Lenina street, Neryungri, Republic of Sakha (Yakutia), 678960 

Basel II means recommendations contained in the following document adopted by the Basel Committee on Banking Supervision in June 2004:
“International Convergence of Capital Measurement and Capital Standards: New Methods”. 
 Basel III means: 

 

	 	(a)	 recommendations contained in documents published by the Basel Committee on Banking Supervision in December
2010: “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International framework for liquidity risk measurement, standards and monitoring ” and “Guidance for national
authorities operating the countercyclical capital buffer” as subsequently amended and supplemented; 

  

	 	(b)	 recommendations for systemically important banks contained in the following document published by the Basel
Committee on Banking Supervision in November, 2011: “Global systemically important banks: Assessment methodology and the additional loss absorbency requirement” as subsequently amended and supplemented; and 

  
 24 

	 	(c)	 any other documents, explanations or standards published by the Basel Committee on Banking Supervision with
respect to Basel III. 

 Reference Rate with respect to EURIBOR means interbank clearing rate in Euro which is
administered by the European Money Markets Institute or its succeeding organization for the respective Interest Period specified on the respective page of the Thomson Reuters system or on the respective page of another information service that may
publish the interest rate instead of the Thomson Reuters system. 
 If the respective page of the Thomson Reuters system or another
information service is replaced or the above-mentioned system becomes unavailable, the Credit Manager (after discussing it with the Borrower and Creditors) may choose another page or information service that publishes the respective interest rate.

 Bank means the VTB Bank (public joint-stock company). 

Reference Banks mean VTB Bank (Europe) SE, Belfius Bank SA/NV, BNP-Paribas, HSBC France S.A.,
Société Générale S.A., Natixis, Crédit Agricole s.a., Deutsche Bank, DZ Bank Deutsche Zentral-Genossenschaftsbank, National Bank of Greece, Intesa Sanpaolo, Banca Monte dei Paschi di Siena, UniCredit Banca, Banque
et Caisse d’Epargne de l’Etat, ING Bank N.V., Caixa Geral de Depósitos (CGD), Banco Bilbao Vizcaya Argentaria S.A., Banco Santander S.A., CECABANK S.A., CaixaBank S.A., Barclays plc or other credit organizations selected by the
Credit Manager as reference banks as agreed with the Borrower. 
 Benchmark Bank Rate means the arithmetic mean of rates (with upward
rounding to 4 decimal places) provided by Reference Banks to the Credit Manager upon the request of the latter: 
  

	 	(a)	 (except for cases when paragraph (b) below is applied) as a rate at which, in the opinion of the Reference
Bank, a reliable bank offers another reliable bank to make interbank fixed-term deposits in Euro for the respective period of time within the European Union member countries; or 

 

	 	(b)	 if different – as a rate (if available and applied to the respective Reference Bank and the respective
time period) which is offered by organizations engaged in determining EURIBOR upon the request of the respective organization which is in charge of EURIBOR calculation and publication, 

and for the Benchmark Bank Rate calculation, no account is taken of fifteen (15) highest and fifteen (15) lowest rates the Credit
Manager is offered by Reference Banks. 
 Majority of Creditors means: 

 

	 	(a)	 before the Drawdown Date – Creditors whose Available Facility in total reaches sixty six and two-thirds (662⁄3 ) percent of the Total Available facility or more; 

 

	 	(b)	 if there are no Outstanding Credits and the Total Available Facility has been reduced to zero – Creditors
whose Available Facility in total reached sixty six and two-thirds (662⁄3 ) percent of the Total Available facility or more
immediately prior to the date of such reduction: or 

  

	 	(c)	 at any other period of time – Creditors whose participation in an Outstanding Credit together with their
Unspent Available Facility, as well as the Amount to be provided in total reaches sixty six and two-thirds (662/3 ) percent of the total Outstanding Credit amount or more together with the Total Unspent Available Facility and the Amount to be provided by all Creditors, 

  
 25 

 provided that, for the purposes of this definition, an Available Facility denominated in
Rubles shall be converted into Euro at the official exchange rate of the Central Bank of the Russian Federation as at the date of the relevant decision or determination made by the Majority of Creditors. 

Currency of the Agreement has the meaning given to it in Article 24.6 (Currency of payment). 

Currency Restriction means any restrictions adopted or introduced by public or other authorized bodies of foreign countries, except for
decisions made with respect to the consideration of commercial disputes that entail any of the following consequences: 
  

	 	(a)	 a fine, arrest, restriction, inability to dispose of any assets by any Party, including funds in US Dollars or
Euro; 

  

	 	(b)	 prohibition or restriction with respect to maintenance of accounts in US Dollars or Euro in the Russian
Federation and/or outside its borders; 

  

	 	(c)	 prohibition or restrictions for any Party or a third party whose participation is required to perform
obligations hereunder (including correspondent banks, banks which maintain the settlement accounts that are used for payments under this Agreement, depositary), perform or execute all or certain types of deals or transactions required to meet
obligations hereunder, including inability to use the SWIFT system; or 

  

	 	(d)	 moratorium on transactions in US Dollars or Euro. 

Intragroup Loan means a loan, the creditors and borrowers of which are Mechel Group companies. 

Sales Revenue means the funds received/to be received by companies of the Mechel Group (except for Kuzbass Power Sales Company PJSC)
from sales of manufactured products, services, works. 
 FATCA Deduction means a deduction or withholding from a payment provided for
by the Financial Document pursuant to FATCA requirements. 
 Guarantor means Mechel Carbon AG, a legal entity established in
accordance with the laws of Switzerland, registration number CHE-114.168.474, located at the following address: Oberdorfstrasse 11, 6340 Baar. 

Guarantee means an English law governed guarantee of July 17, 2018 executed between the Credit Manager and the Guarantor, subject
to the Confirmation of Guarantee. 
 State which is a party to the Treaty on Avoidance of Double Taxation means a state that has
concluded the Treaty on Avoidance of Double Taxation with the Russian Federation. 
 Civil Code means the Civil Code of the
Russian Federation. 
 VTB Group means VTB Bank (public joint-stock company) and its subsidiary companies that are included in the
consolidated financial accounts of the VTB Bank (public joint-stock company) on the IFRS basis, and RCB Bank Ltd and CQUR Bank LLC. 

Mechel Group means Mechel PJSC and companies for the inclusion of which into consolidated financial statements of Mechel PJSC according
to IFRS a direct consolidation method is used. 
 Drawdown Date means each date on which the Credit Manager transfers the Credit or
any part thereof specified in the Disbursement Request to a Euro-denominated Borrower’s Account or a Ruble-denominated Borrower’s Account, accordingly. 

Final Repayment Date means March 6, 2030. 

  
 26 

 Interest Rate Determination Date means, with respect to any period for which the
interest rate is determined, a date which is two TARGET Days prior to the start date of such a period. 
 FATCA Application Date
means: 
  

	 	(a)	 with respect to any “withholdable payment” specified in Article 1473(1)(A)(i) of the Code (relating
to interest payments and some other payments that are U.S. source FDAP income) – July 1, 2014; 

  

	 	(b)	 with respect to any “withholdable payment” specified in Article 1473(1)(A)(ii) of the Code (relating
to any gross proceeds from the sale or other disposition of any property of a type that can produce interest or dividends that are U.S. source FDAP income) – January 1, 2019; or 

 

	 	(c)	 with respect to any passthru payment specified in Article 1471(d)(7) of the Code that falls outside the scope
of paragraphs (a) or (b) above – January 1, 2019, 

  

	 	(d)	 or (in each case) such another date from which a deduction or withholding can be made from such payment
pursuant to FATCA requirements due to changes introduced in FATCA after the date hereof. 

 Test Date has the
meaning given to it in the definition of “Extension Conditions”. 
 Restructuring Date means the date on which the Credit
Manager delivers to the Borrower, by hand or registered mail with schedule of enclosures (return receipt requested), a confirmation in writing that all conditions set out in Schedule 1 (Conditions Precedent) to Addendum 1 have been fulfilled
to the satisfaction of the Credit Manager, and that all of the documents and other evidence listed in Schedule 1 (Conditions Precedent) to Addendum 1, in form and substance satisfactory to the Credit Manager, have been provided to the Credit
Manager. 
 Interest Payment Date means the sixth day of each month or, if such day is a
non-Business Day, the next following Business Day. 
 Existing Loans mean: 

 

	 	(a)	 credit facility agreement No. 2640 dated December 27, 2010 between the Bank and Mechel PJSC
(Credit 1); 

  

	 	(b)	 credit facility agreement No. KC-743000/2008/00104 dated November 26, 2008 between the Bank and PJSC
Southern Kuzbass (Credit 2); 

  

	 	(c)	 credit facility agreement No. KC-3732 dated September 9, 2015 between the Bank and the Borrower (Credit
3); and 

  

	 	(d)	 credit facility agreement No. 4114 dated December 23, 2016 between the Bank and the Borrower
(Credit 4). 

 TARGET Day means any day on which the TARGET2 system is open for transactions in Euro. 

Depositary means the VTB Bank (public joint-stock company). 

Market Disruption means circumstances when EURIBOR must be determined at 15:00 by Reference Bank as of the Interest Rate Determination
Date for the respective Interest Period, and none of the Reference Banks provides or only one of the Reference Banks provides information on Benchmark Bank Rate to the Credit Manager. 

  
 27 

 CRD IV Directive on Capital Requirements means: 

 

	 	(a)	 Provision No. 575/2013 of the European Parliament and the Council of the European Union dated
June 26, 2013 on prudential requirements for credit organizations and investment firms; and 

  

	 	(b)	 Directive 2013/36/EC of the European Parliament and the Council of the European Union dated June 26, 2013
on access to the activities of credit organizations and prudential supervision over credit organizations and investment firms. 

Share Pledge Agreement means: 
  

	 	(a)	 Agreement on pledge of shares of Southern Kuzbass PJSC; 

 

	 	(b)	 Agreement on pledge of shares of Yakutugol JSHC; 

 

	 	(c)	 Agreement on pledge of shares of PJSC Korshunovsky GOK; 

 

	 	(d)	 Agreement on pledge of shares of PJSC Urals Stampings Plant; 

 

	 	(e)	 Agreement on pledge of shares of the Borrower; 

 

	 	(f)	 Agreement on pledge of shares of JSC Mechel-Mining; and 

 

	 	(g)	 Agreement on pledge of repurchased shares. 

Agreement on pledge of shares of Mechel-Mining JSC means a second ranking share pledge agreement in relation to thirty seven point five
(37.5) per cent. of ordinary shares plus one (1) ordinary share in Mechel-Mining JSC entered into between the Pledge Manager and Mechel PJSC on or around the date of Addendum 1. 

Agreement on pledge of shares of Yakutugol JSHC means each of: 

 

	 	(a)	 the agreement of second pledge dated July 17, 2018 between the Pledge Manager and Mechel-Mining JSC in
relation to twenty five (25) percent of ordinary shares minus three (3) ordinary shares in Yakutugol JSHC, as amended by the relevant Addendum to Agreement on pledge of shares of Yakutugol JSHC; and 

 

	 	(b)	 the pledge agreement dated March 26, 2019 between the Pledge Manager and Mechel-Mining JSC in relation to
twenty five (25) percent of ordinary shares plus one (1) ordinary share in Yakutugol JSHC, as amended by addendum 1 dated July 9, 2019 and the relevant Addendum to Agreement on pledge of shares of Yakutugol JSHC.

 Agreement on pledge of shares of the Borrower means the agreement of second pledge executed between the Pledge
Manager and Mechel PJSC on or about the date of Addendum 1 in relation to forty-six and sixty-six hundredths percent (46.66%) of ordinary shares minus one
(1) ordinary share in the Borrower. 
 Agreement on pledge of shares of PJSC Korshunovsky GOK means the agreement of second
pledge dated July 17, 2018 between Pledge Manager and Mechel-Mining JSC in relation to twenty five (25) percent of ordinary shares plus one (1) ordinary share in PJSC Korshunovsky GOK, as amended by the Addendum to Agreement on pledge
of shares of PJSC Korshunovsky GOK. 
 Agreement on pledge of shares of PJSC Urals Stampings Plant means the agreement of second
pledge executed between the Pledge Manager and Mechel PJSC on or about the date of Addendum 1 in relation to twenty-five percent (25%) of ordinary shares plus one (1) ordinary share in PJSC Urals Stampings Plant. 

  
 28 

 Agreement on pledge of shares of Southern Kuzbass PJSC means each of: 

 

	 	(a)	 the agreement of second pledge dated July 17, 2018 between the Pledge Manager and Mechel-Mining JSC in
relation to twenty five (25) percent of ordinary shares plus one (1) ordinary share in Southern Kuzbass PJSC, as amended by the relevant Addendum to Agreement on pledge of shares of Southern Kuzbass PJSC; and 

 

	 	(b)	 the pledge agreement dated March 26, 2019 between the Pledge Manager and Mechel-Mining JSC in relation to
the pledge of twenty five (25) percent of ordinary shares plus one (1) ordinary share in Southern Kuzbass PJSC, as amended by addendum 1 dated July 9, 2019 and the relevant Addendum to Agreement on pledge of shares of Southern Kuzbass
PJSC. 

 Agreement on pledge of repurchased shares means a pledge agreement(s) to be executed between the Pledge
Manager and the relevant Pledgor in relation to all ordinary shares in Mechel PJSC and the Borrower as purchased in accordance with the purpose of Tranche D. 

Treaty on Avoidance of Double Taxation means a treaty on avoidance of double taxation made between a foreign state and the Russian
Federation that provides for full exemption from the Russian tax on income of foreign legal entities charged on interest. 
 Security
Agreement means: 
  

	 	(a)	 any Share Pledge Agreement; and 

 

	 	(b)	 any other contract made between a Liable Party and the Pledge Manager in order to secure the responsibility of
Liable Parties with respect to Financial Documents. 

 VTB Group Contract means any contract between any of the
Mechel Group companies and any of the VTB Group companies. 
 Creditor Rights Assignment Agreement means an agreement mainly prepared
in the form of Appendix 6 (Model form of an Agreement of Assignment of the Creditor’s rights) or in any other form under which the Current Creditor (as defined in Article 22 (Change of the Parties)) assigns one’s rights
and/or transfers liabilities hereunder to a New Creditor (as defined in Article 22 

  
 29 

 (Change of the Parties)). 

US Dollar, USD, or US$ means legal means of payment of the United States of America. 

Addendum 1 means an amendment and restatement agreement dated April 21, 2020 in relation to this Agreement, as executed by the
Parties. 
 Additional Tax Payment means the increase in the amount of payment to be made by the Liable Party to the Financing Party
pursuant to provisions of Article 13.1 (Reimbursement for a Tax Deduction or payment to the Financing Party by the Liable Party pursuant to Article 13.2 (Reimbursement for Tax paymentss). 

Other Senior Creditor mean Gazprombank (Joint Stock Company) and, for the purpose of clause 20.1(aa) of Article 20 (Events of
Default), or any of its affiliates. 
 Addendum to Agreement on pledge of shares of Yakutugol JSHC means an addendum to each of
the Agreements on pledge of shares of Yakutugol JSHC entered into between the Pledge Manager and Mechel-Mining JSC on or around the date of Addendum 1. 

Addendum to Agreement on pledge of shares of PJSC Korshunovsky GOK means an addendum to the Agreement on pledge of shares of PJSC
Korshunovsky GOK entered into between the Pledge Manager and Mechel-Mining JSC on or around the date of Addendum 1. 
 Addendum to
Agreement on pledge of shares of Southern Kuzbass PJSC means an addendum to each of the Agreements on pledge of shares of Southern Kuzbass PJSC entered into between the Pledge Manager and Mechel-Mining JSC on or around the date of Addendum 1.

  
 30 

 Addendum to Suretyship of Mechel-Mining JSC means an addendum to the Suretyship
to which Mechel-Mining JSC is a party entered into between the Credit Manager and Mechel-Mining JSC on or around the date of Addendum 1 and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of this
Agreement without limitation of the surety’s liability. 
 Addendum to Suretyship of Yakutugol JSHC means an addendum to the
Suretyship to which Yakutugol JSHC is a party entered into between the Credit Manager and Yakutugol JSHC on or around the date of Addendum 1 and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of this
Agreement without limitation of the surety’s liability. 
 Addendum to Suretyship of BFP LLC means an addendum to the Suretyship
to which BFP LLC is a party entered into between the Credit Manager and BFP LLC on or around the date of Addendum 1 and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of this Agreement without limitation
of the surety’s liability. 
 Addendum to Suretyship of Mechel-Service LLC means an addendum to the Suretyship to which
Mechel-Service LLC is a party entered into between the Credit Manager and Mechel-Service LLC on or around the date of Addendum 1 and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of this Agreement without
limitation of the surety’s liability. 
 Addendum to Suretyship of Mechel-Trans LLC means an addendum to the Suretyship to
which Mechel-Trans LLC is a party entered into between the Credit Manager and Mechel-Trans LLC on or around the date of Addendum 1 and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of this Agreement
without limitation of the surety’s liability. 
 Addendum to Suretyship of Korshunovsky GOK PJSC means an addendum to the
Suretyship to which Korshunovsky GOK PJSC is a party entered into between the Credit Manager and Korshunovsky GOK PJSC on or around the date of Addendum 1 and incorporating an undertaking to be liable for the Borrower’s obligations on the terms
of this Agreement up to four billion four hundred sixty nine million four hundred eighty five thousand (4,469,485,000) Rubles. 
 Addendum
to Suretyship of Mechel PJSC means each of: 
  

	 	(a)	 an addendum to the Suretyship to which Mechel PJSC is a party entered into between the Credit Manager and
Mechel PJSC on or around the date of Addendum 1 and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of this Agreement; and 

 

	 	(b)	 an addendum to the Suretyship to which Mechel PJSC is a party to be executed as set out in paragraph 5 of
Schedule 2 (Conditions Subsequent) to Addendum 1. 

 Addendum to Suretyship of Urals Stampings Plant PJSC
means an addendum to the Suretyship to which Urals Stampings Plant PJSC is a party entered into between the Credit Manager and Urals Stampings Plant PJSC on or around the date of Addendum 1 and incorporating an undertaking to be liable for the
Borrower’s obligations on the terms of this Agreement up to three billion five hundred seventy five million five hundred thirty three thousand eighty seven (3,575,533,087) Rubles. 

Addendum to Suretyship of Southern Kuzbass PJSC means an addendum to the Suretyship to which Southern Kuzbass PJSC is a party entered
into between the Credit Manager and Southern Kuzbass PJSC on or around the date of Addendum 1 and incorporating an undertaking to be liable for the Borrower’s obligations on the terms of this Agreement without limitation of the surety’s
liability. 
 Euro or € means the single currency of the European Union member states that have adopted Euro as its
legal means of payment in accordance with EU laws on the establishment of the economic and currency union. 

  
 31 

 EURIBOR means with respect to any part of the Outstanding Credit amount denominated
in Euro: 
  

	 	(a)	 Reference Rate; or 

  

	 	(b)	 Interpolated Interest Rate if the Reference Rate is not available for the Interest Period for Outstanding
Credit denominated in Euro; or 

  

	 	(c)	 Benchmark Bank Rate if the Reference Rate is not available for the Interest Period for Outstanding Credit
denominated in Euro and the Interpolated Interest Rate cannot be determined 

 at 11:00 (Brussels time) on the Interest
Rate Determination date for a period comparable with the Interest Period duration for the respective Outstanding Credit denominated in Euro, and 

if in any case such rate is negative, EURIBOR shall be considered equal to zero. 

Bankruptcy Law means the Federal Law of the Russian Federation No. 127-FZ dated October 26,
2002 “On Insolvency (Bankruptcy)”. 
 Credit History Law means the Federal Law of the Russian Federation No. 218-FZ dated December 30, 2004 “On Credit Histories”. 
 Law on Syndicated Loans
means the Federal Law of the Russian Federation No. 486-FZ dated December 31, 2017 “On Syndicated Credit (Loan) and Amendment of Certain Legislative Acts of the Russian Federation”. 

US Law on Taxation of Foreign Accounts (FATCA) means: 
  

	 	(a)	 articles 1471-1474 of the Code and any regulatory acts related to them; 

 

	 	(b)	 any contract, law, regulatory act adopted by any other jurisdiction or relating to any intergovernmental
agreement between the US and any other jurisdiction that (in any of the above cases) brings into force any of the laws or regulatory acts specified in paragraph (a) above; or 

 

	 	(c)	 any agreement that brings into force any agreements, laws or regulatory acts, specified in paragraphs
(a) or (b) above, and made with the US Inland Revenue Service, US Government or any other government or fiscal body of any other jurisdiction. 

Pledgor means Mechel-Mining JSC, Mechel PJSC and any other person as a pledgor under the respective Agreement on pledge of shares. 

Disbursement Request means the Borrower’s drawdown request prepared mainly in accordance with the form of Appendix 5 (Form of a
Disbursement request). 
 Interpolated Interest Rate means the interest rate (with upward rounding to four decimal places)
determined by the Credit Manager on the Interest Rate Determination Date using the linear interpolation method based on Reference Rates for two periods, the first of which is the period the duration of which is closest to the Interest Period of the
periods shorter than the Interest Period, and the second of which is the period the duration of which is closest to the Interest Period of the number of periods that are longer than the Interest Period. 

CBR Key Rate means a key rate of the Central Bank of the Russian Federation as determined on a daily basis on the basis of information
specified at the official web-site of the Central Bank of the Russian Federation (cbr.ru or, if changed, any other official web-site of the Russian Federation). If the

  
 32 

 
key rate of the Central Bank of the Russian Federation is abolished and/or is no longer applied by the Central Bank of the Russian Federation to determine the rate at which it is willing to lend
money to credit institutions of the Russian Federation, interest on any Outstanding Credit shall be calculated at the higher of a similar rate as established by the Central Bank of the Russian Federation to determine the cost of refinancing through
repurchase transactions and/or the cost of financing as secured by the pledge of non-marketable assets. 

Code means the US Internal Revenue Code of 1986. 

Confidential Information means any information (including personal data) in any form (including oral information and any documents and
information recorded or saved in the form of electronic files or on any other data storage media) about Liable Parties, Mechel Group, Financial Documents or the Loan that becomes available to the Financing Party or obtained by any person that
intends to become the Financing Party, from: 
  

	 	(a)	 any participant of the Mechel Group or its consultant; or 

 

	 	(b)	 other Financing Party, if the information was obtained by such Financing Party from any participant of the
Mechel Group or its consultant, 

 excluding the information which: 

 

	 	(i)	 is or becomes available to the public otherwise than due to a violation by the Financing Party of any
conditions of Article 29 (Confidentiality); or 

  

	 	(ii)	 is not determined in written form as a confidential information at the moment of its transfer by any
participant of the Mechel Group or its consultant; or 

  

	 	(iii)	 had been known to the Financing Party before the date of the information disclosing or was legally obtained by
the Financing Party after such date from a source that, to the best of the Financing Party’s knowledge, is not related to the Mechel Group, and which, in any case, to the best of the Financing Party’s knowledge, was not obtained as a
result of a breach of a confidentiality obligation and/or information disclosure restrictions. 

 Credit means funds
within the Total Available Facility provided by Creditors as a loan to the Borrower hereunder in the form of Tranche A, Tranche B, Tranche C and Tranche D. 

Creditor means: 
  

	 	(a)	 any Initial Creditor: and/or 

 

	 	(b)	 any banks or other credit or other organizations (excluding any persons that are Mechel Group members) that
acquire the rights to claim the Borrower and/or a liability to provide Credit in accordance with the provisions of Article 22.2 (Assignment of rights and transfer of obligations by the Creditors) and the applicable legislation.

 PXF Creditors means creditors under Existing PXF Credit Agreements. 

Available Facility means the amount of funds that: 
  

	 	(a)	 with respect to the Initial Creditor, each Initial Creditor undertakes to provide to the Borrower as a loan
through Tranche A, Tranche B, Tranche C and Tranche D in accordance with the provisions of this Agreement, and specified in the table next to the name of the respective Initial Creditor in Appendix 0 (List of Initial Creditors and Available
Facility for Tranche A, Tranche B, Tranche C and Tranche D); and 

  
 33 

	 	(b)	 with respect to any other Creditor, the respective Creditor undertakes to provide to the Borrower due to the
assignment of liability to provide Credit to the Borrower by the Initial Creditor to the Creditor, 

 and which can be
changed in accordance with the provisions hereof. 
 Margin means 5.5 (Five point five) percent per annum. 

IFRS means a set documents (standards and interpretations) regulating the rules for the preparation of financial statements established
by the International Accounting Standards Board (IASB). 
 Tax means any tax, duty, levy or another similar accrual or charge
(including any fines and interest due as a result of non-payment or late payment of any of the above) prescribed by the applicable legislation. 

Tax Indemnity means exemption from Tax (application of a reduced tax rate or tax reimbursement) granted outside the borders of the
Russian Federation with respect to any Tax relating to payments under Financial Documents. 
 Tax Deduction means deduction of any tax
or duty from any payment under the Financial Document, including, in particular, value-added tax and income (profit) tax charged on a source, as well as any other similar taxes that may replace or supplement existing taxes in accordance with the
applicable law, the amount and terms of which are prescribed by the law, except for FATCA refund. 
 Default on Obligations means 

 

	 	(a)	 Event of Default; or 

 

	 	(b)	 an event or circumstance which after (1) a deadline prescribed hereby for elimination of a breach passes,
(2) serving a notice, or (3) making the respective decision based on Financial Documents, shall become the Event of Default. 

Unspent Available Facility means Available Facility for each individual Creditor less (a) the amount of funds already provided to
the Borrower by the Creditor, and (b) the Amount that shall be provide by this Creditor. 
 Outstanding Credit means a
Euro-Denominated Outstanding Credit and a Ruble-Denominated Outstanding Credit. 
 Euro-Denominated Outstanding Credit means, at any
moment, funds in Euro issued to the Borrower as a loan pursuant to this Agreement and not repaid to the Creditors. 
 Ruble-Denominated
Outstanding Credit means, at any moment, funds in Rubles issued to the Borrower as a loan pursuant to this Agreement and not repaid to the Creditors, including interest capitalized under clause 9.3(b) of Article 9.3 (Payment of Interest on
Ruble-Denominated Outstanding Credit). 
 New Financial Documents means: 

 

	 	(a)	 the Agreement on pledge of shares of the Borrower; 

 

	 	(b)	 the Agreement on pledge of shares of PJSC Urals Stampings Plant; 

  
 34 

	 	(c)	 the Agreement on pledge of shares of Mechel-Mining JSC; 

 

	 	(d)	 the Addendum to Agreement on pledge of shares of Yakutugol JSHC; 

 

	 	(e)	 the Addendum to Agreement on pledge of shares of PJSC Korshunovsky GOK; 

 

	 	(f)	 the Addendum to Agreement on pledge of shares of Southern Kuzbass PJSC; 

 

	 	(g)	 the Addendum to Suretyship of Mechel-Mining JSC; 

 

	 	(h)	 the Addendum to Suretyship of Yakutugol JSHC; 

 

	 	(i)	 the Addendum to Suretyship of BFP LLC; 

 

	 	(j)	 the Addendum to Suretyship of Mechel-Service LLC; 

 

	 	(k)	 the Addendum to Suretyship of Mechel-Trans LLC; 

 

	 	(l)	 the Addendum to Suretyship of Korshunovsky GOK PJSC; 

 

	 	(m)	 the Addendum to Suretyship of Mechel PJSC; 

 

	 	(n)	 the Addendum to Suretyship of Urals Stampings Plant PJSC; 

 

	 	(o)	 the Addendum to Suretyship of Southern Kuzbass PJSC; and 

 

	 	(p)	 the Confirmation of Guarantee. 

Encumbrance means a mortgage, collateral, lien, pledge, security (conditional) assignment, right to write off funds from an account
under previously issued acceptance of the payment or similar right to write off or another encumbrance, created for securing the performance of obligations of any person, or another agreement made to secure the performance of obligations. 

Total Debt means an economic indicator equal to the amount of short- and long-term borrowings including the amount of capitalized
interest to the principal debt under such borrowings, the amount of any liability in relation to any lease, leasing or hire purchase contract (as shown/would be shown in IFRS financial statements), derivative deals made for the protection against
price/interest rate fluctuations (the amount of current liability is used for the purpose of calculation in accordance with the method specified in statements), suretyships and guarantees (excluding surety agreements and guaranties made by Mechel
Group members to secure the performance of obligations by other Mechel Group members to third parties that are not Mechel Group members and without dual accounting), any other deals (including but not limited to prepayment deals/prepaid supply), the
commercial effect of which are borrowings and which is calculated on the basis of data of the respective consolidated financial statements in accordance with IFRS. 

Ordinary Course of Business mean any deals and transactions that are made/performed in the course of current activities of a company
that is a member of Mechel Group based on the market value of the subject matter of the transaction and using normal commercial conditions (including similar in terms of assets and turnover) but which are not related to the raising and granting of
financing/loans, are not contrary to the Law and do not lead to significant deterioration of the financial situation of a company that is a member of Mechel Group; 

Liable Party – US Taxpayer mean: 
  

	 	(a)	 Liable Party who a US tax resident; or 

 

	 	(b)	 Liable Party that makes all or some of its payments under Financial Documents from sources located in the US
territory for the purpose of the federal tax on US income. 

  
 35 

 Liable Party without limitation of liability means the Borrower, Southern Kuzbass
PJSC, Mechel PJSC, Yakutugol JSHC, Mechel-Mining JSC, Mechel-Trans LLC, Mechel-Service LLC, and BFP LLC, as well as: 
  

	 	(a)	 Mechel PJSC if it made surety agreements with the Credit Manager without limitation of the surety liability
under this Agreement; 

  

	 	(b)	 PJSC Korshunovsky GOK if it made surety agreements with the Credit Manager without limitation of the surety
liability under this Agreement; 

  

	 	(c)	 Urals Stampings Plant PJSC if it made surety agreements with the Credit Manager without limitation of the
surety liability under this Agreement; 

  

	 	(d)	 Surety 10 or any other person if it made surety agreements with the Credit Manager without limitation of the
surety liability under this Agreement. 

 Liable Party with limited liability means Liable Parties who are not
Liable Parties without limitation of liability. 
 Liable Parties mean the Borrower, Sureties, Guarantor, and Pledgors, provided that,
solely for the purpose of sub-clauses (i)-(vii) and (xiii) of clause 18.1(i) of Article 18 (General Obligations and obligations to Comply with Financial Indicators) and sub-clauses (i)-(vii) and (xiii) of clause 1(a) of Appendix 9 (List of Breaches and Circumstances to be Reviewed for the Purpose of Extension), the Guarantor and the Pledgors shall not be
Liable Parties. 
 Repurchase Obligation means an issuer’s obligation to repurchase shares from its shareholders who requested
such repurchase as a result of the issuer’s general shareholders’ meeting passing a resolution approving or ratifying the execution of a major transaction which is also an interested party transaction in relation to assets whose value
exceeds fifty per cent. (50%) of the book value of the issuer’s assets as determined on the basis of its latest financial statements, provided that such shareholders voted against or did not participate in the voting on such resolution, in
accordance with article 75 of the Federal Law of the Russian Federation No. 208-FZ dated December 26, 1995 “On Joint Stock Companies”. 

BFP LLC means Bratsk Ferroalloy Plant Limited Liability Company, a legal entity established in accordance with the Law of the Russian
Federation and registered in the Unified State Register of Legal Entities of the Russian Federation, primary state registration number: 1033800845760, legal address: Russian Federation, Irkutsk region, Bratsk, Central residential district, P 01 11
01 00. 
 Mechel-Service LLC means Mechel-Service Limited Liability Company, a legal entity established in accordance with the Law of
the Russian Federation and registered in the Unified State Register of Legal Entities of the Russian Federation, primary state registration number: 1057746840524, legal address: 35, Mishina Street, office 201, Moscow, 127083, Russian Federation 

Mechel-Trans LLC means Mechel-Trans Limited Liability Company, a legal entity established in accordance with the Law of the Russian
Federation and registered in the Unified State Register of Legal Entities of the Russian Federation, primary state registration number: 1027739053374, legal address: 1, Krasnoarmeyskaya Street, office 134, Moscow, 125167, Russian Federation 

FATCA Exempt Party means a Party entitled to receive payments without any FATCA Deductions. 

Basic Interest Rate has the meaning given to it in clause (b) of Article 9.1 (Interest calculation). 

Technical Audit Report means a report (in relation to matters agreed in advance between the Credit Manager and the Borrower) on the
results of the technical audit of the Mechel Group’s key companies 

  
 36 

 
within its mining and metallurgical divisions (the list of such companies to be pre-agreed by the Credit Manager and the Borrower), as prepared by
independent external consultants and setting out, inter alia: 
  

	 	(a)	 confirmation of the amount of coal and iron ore reserves; 

 

	 	(b)	 mining map of the mining division and production plan of the metallurgical division (including operating cost
analysis); 

  

	 	(c)	 audit results in relation to existing assets, including coke-chemical furnaces, preparation plants, blast
furnaces, basic-oxygen converters and other assets of the Mechel Group; and 

  

	 	(d)	 the Mechel Group’s investment programme to implement the above mining map of the mining division and
production plan of the metallurgical division. 

 Financial Consultant Report has the meaning given to it in clause
17.7(l) of Article 17 (Obligations to provide information). 
 Offer means public irrevocable SSK offer to buy out
creditors’ rights of claim under Existing PXF Credit Agreements addressed to PXF Creditors. 
 PJSC Korshunovsky GOK means Public
Joint-Stock Company Korshunov Mining Plant, a legal entity established in accordance with the Law of the Russian Federation and registered in the Unified State Register of Legal Entities of the Russian Federation, primary state registration number:
1023802658714, located at 9A/1 Ivashchenko Street, Zheleznogorsk-Ilimsky, Nizhneilimsky district, Irkutsk Region, 665651, Russian Federation. 

Mechel PJSC means Mechel Public Joint-Stock Company, a legal entity established in accordance with the Law of the Russian Federation and
registered in the Unified State Register of Legal Entities of the Russian Federation, primary state registration number: 1037703012896, legal address: 1, Krasnoarmeyskaya Street, Moscow, 125167, Russian Federation. 

Urals Stampings Plant PJSC means Public Joint-Stock Company Urals Stampings Plant, a legal entity established in accordance with the Law
of the Russian Federation and registered in the Unified State Register of Legal Entities of the Russian Federation, primary state registration number: 1027401141240, legal address: 7 Dzerzhinskogo Street, Chelyabinsk region, Chebarkul, 456440,
Russian Federation. 
 Southern Kuzbass PJSC means Public Joint-Stock Company Southern Kuzbass Coal Company, a legal entity
established in accordance with the Law of the Russian Federation and registered in the Unified State Register of Legal Entities of the Russian Federation, primary state registration number: 1024201388661, legal address: 6 Yunosti street,
Mezhdurechensk, Kemerovo Oblast, 652877. 
 Original Final Repayment Date means March 6, 2027. 

Drawdown Period means: 
  

	 	(a)	 in relation to Tranche A and Tranche B, a period between the date hereof (inclusive) and the date
(inclusive) that occurs one hundred and eighty (180) days from the date hereof; and 

  

	 	(b)	 in relation to Tranche C and Tranche D, a period from and including the date of Addendum 1 to and
including the date falling eighteen (18) months from the date of Addendum 1. 

 Encumbrance Letter means a
letter setting out the list of Encumbrances and executed by the Borrower and the Credit Manager on or around the date of Addendum 1. 

  
 37 

 FATCA Payment means either of the following: 

 

	 	(a)	 increase in the amount of payment made by the Liable Party to the Financing Party according to Article 13.8
(FATCA Deduction and recalculation of amounts made by the Liable Party) or paragraph 13.9(b) of Article 13.9 (FATCA Deduction made by the Financing Party); or 

 

	 	(b)	 payment made in accordance with paragraph 13.9(d) of Article 13.9 (FATCA Deduction made by the Financing
Party). 

 Surety means: 
  

	 	(a)	 Mechel PJSC; 

  

	 	(b)	 Mechel-Mining JSC; 

  

	 	(c)	 Yakutugol JSHC; 

  

	 	(d)	 Southern Kuzbass PJSC; 

 

	 	(e)	 Mechel-Trans LLC; 

  

	 	(f)	 Mechel-Service LLC; 

  

	 	(g)	 BFP LLC; 

  

	 	(h)	 Urals Stampings Plant PJSC; 

 

	 	(i)	 Korshunovsky GOK PJSC; and 

 

	 	(j)	 Surety 10. 

Surety 10 means a Trader entitled to a share in the revenue and/or EBITDA of the Mechel Group according to IFRS of more than two point
five (2.5) percent and/or any other Mechel Group person entitled to a share in the revenue and/or EBITDA and/or fixed assets of the Mechel Group according to IFRS of more than ten (10) percent. Revenue and EBITDA shall be calculated for the
last twelve (12) months based on the relevant consolidated financial statements of Mechel Group according to IFRS; Kuzbass Power Sales Company PJSC and Mechel-Energo LLC are not Surety 10 while the terms of paragraph 18.1(m) of Article 18.1
(General Obligations and obligations to Comply with Financial Indicators) hereof are met. 
 Suretyship means: 

 

	 	(a)	 suretyship of Mechel PJSC in accordance with a surety agreement dated July 12, 2018 between the Credit
Manager and Mechel PJSC, as amended by each Addendum to Suretyship of Mechel PJSC; 

  

	 	(b)	 surety of Mechel-Mining JSC in accordance with a surety agreement dated July 17, 2018 between the Credit
manager and Mechel-Mining JSC, as amended by the Addendum to Suretyship of Mechel-Mining JSC; 

  

	 	(c)	 surety of Yakutugol JSHC in accordance with a surety agreement dated July 12, 2018 between the Credit
manager and Yakutugol JSHC, as amended by the Addendum to Suretyship of Yakutugol JSHC; 

  
 38 

	 	(d)	 suretyship of Southern Kuzbass PJSC in accordance with a surety agreement dated July 12, 2018 between the
Credit Manager and Southern Kuzbass PJSC, as amended by the Addendum to Suretyship of Southern Kuzbass PJSC; 

  

	 	(e)	 surety of Mechel-Trans LLC in accordance with a surety agreement dated July 12, 2018 between the Credit
manager and Mechel-Trans LLC, as amended by the Addendum to Suretyship of Mechel-Trans LLC; 

  

	 	(f)	 surety of Mechel-Service LLC in accordance with a surety agreement dated July 12, 2018 between the Credit
Manager and Mechel-Service LLC, as amended by the Addendum to Suretyship of Mechel-Service LLC; 

  

	 	(g)	 surety of BFP LLC in accordance with a surety agreement dated July 12, 2018 between the Credit Manager and
BFP LLC, as amended by the Addendum to Suretyship of BFP LLC; 

  

	 	(h)	 suretyship of Urals Stampings Plant PJSC in accordance with a surety agreement dated July 12, 2018 between
the Credit Manager and Urals Stampings Plant PJSC, as amended by the Addendum to Suretyship of Urals Stampings Plant PJSC; 

  

	 	(i)	 suretyship of Korshunovsky GOK PJSC in accordance with a surety agreement dated July 12, 2018 between the
Credit Manager and Korshunovsky GOK PJSC, as amended by the Addendum to Suretyship of Korshunovsky GOK PJSC. 

Acceptable Creditor is a Creditor meeting the following criteria: 

 

	 	(a)	 a Russian legal entity or 

 

	 	(b)	 a resident of the state which is a party to the Treaty on Avoidance of Double Taxation as long as the
Creditor’s status shall be annually confirmed by a copy of the document issued by the competent tax authority of the state which is a party to the Treaty on Avoidance of Double Taxation, translated into Russian, notarized and apostilled (or
legalized) to prove that the relevant Creditor is a resident of the state which is a party to the Treaty on Avoidance of Double Taxation. 

Elga Sale means the sale of a 50.9990202673% interest in the share capital of Elgaugol LLC, a 51% interest in the share capital of
Elga-road LLC and a 51% interest in the share capital of MecheltransVostok LLC held by Yakutugol JSHC and Mechel-Trans LLC, accordingly, on and subject to the terms of the consent set out in the letter dated 21 April 2020 from, among others, the
Liable Parties to the Bank, as countersigned by the Bank on 21 April 2020. 
 Proportional Share means: 

 

	 	(a)	 for the purpose of determining the Creditor’s share of participation in the provision of Credit under any
Disbursement Request, the share of Unspent Available Facility of such Creditor in the Total Unspent Available Facility. 

  

	 	(b)	 for any other purposes: 

 

	 	(i)	 if there are no Outstanding Credits, the share of Available Facility of a certain Creditor in the Total
Available Facility, or 

  

	 	(ii)	 if there is an Outstanding Credit, the share of the Outstanding Credit issued to the Borrower by a certain
Creditor together with the Amount that must be provided by this Creditor in the Outstanding Credit issued to the Borrower by all Creditors together with the Amount that must be provided by all Creditors,

  
 39 

 
provided that, for the purposes of this definition, an Available Facility denominated in Rubles shall be converted into Euro at the official exchange rate of the Central Bank of the Russian
Federation as at the date of determination of the Proportional Share. 
 Interest means an economic indicator calculated for the
latest twelve (12) months on the basis of the consolidated financial statements of the Mechel Group in accordance with IFRS which is equal to the amount of interest received and accrued (without double-entry accounting) for the period specified
in this definition with respect to monetary funds and their equivalent, as is defined in the Mechel Group financial statements according to IFRS. 

Interest Period means, with respect to an Outstanding Credit, each period during which interest is accrued, and which is defined in
accordance with the provisions of Article 10 (Interest periods), and, with respect to any overdue amount, each period, which is defined in accordance with the provisions of Article 9.4 (Interest payment in revision by Creditors).

 Business Day means any day when banks are open for the performance of ordinary banking transactions in Moscow and Frankfurt am Main
and, for the purposes of Euro payments, a day which is the TARGET Day. 
 Interest Expenses mean an economic indicator calculated for
the latest twelve (12) months on the basis of the consolidated financial statements of the Mechel Group in accordance with IFRS which is equal to the amount of interest and any other financial duties accrued, paid and capitalized as part of the
principal debt and/or value of fixed assets (without double-entry accounting) for the period specified in this definition with respect to Total Debt, as is defined in the Mechel Group financial statements according to IFRS. 

Decision has a meaning attributed to this term in Article 23.1 (Decisions of the Majority of Creditors). 

  
 40 

 RAS means Russian Accounting Standards. 

Ruble or RUB means a legal means of payment of the Russian Federation. 

Compliance Certificate means a certificate prepared according to the form determined in Appendix 7 (Compliance Certificate
Form). 
 Event of Default means any event or circumstance specified in Article 20 (Events of Default). 

Total Available Facility means the total amount of the Available Facility of all Creditors being nine hundred and fifty million Euros
(EUR 950,000,000) (but not more than the Euro equivalent of one billion forty two million (1,042,000,000) US Dollars) and sixty six billion nine hundred million (66,900,000,000) Rubles (the “Ruble-Denominated Total Available
Facility”). 
 Total Unspent Available Facility means the amount of Unspent Available Facility of all Creditors. 

Confirmation of Guarantee means a letter of confirmation of guarantee executed between the Credit Manager and the Guarantor to confirm
the effectiveness of the Guarantee in connection with the execution of Addendum 1. 
 SSK means Mechel-BusinessService Limited
Liability Company, a legal entity established in accordance with the Law of the Russian Federation and registered in the Unified State Register of Legal Entities of the Russian Federation, primary state registration number: 1097746354782, legal
address: 1, Krasnoarmeyskaya Street, Moscow, 125167, Russian Federation. 
 Party means a Party to this Agreement. 

Financing Party means each Creditor, Credit Manager and the Pledge Manager. 

Amount to be provided means the amount of money that shall be issued by a Creditor or Creditors on the Drawdown Date specified by the
Borrower in the Disbursement Request. 
 Existing PXF Credit Agreements mean: 

 

	 	(a)	 credit agreement made between Southern Kuzbass PJSC as a borrower and, inter alia, UniCredit Bank AG, London
Branch, as a credit agent, security agent, and joint and several creditor as of September 6, 2010; and 

  

	 	(b)	 credit agreement made between Yakutugol JSHC as a borrower and, inter alia, UniCredit Bank AG, London Branch,
as a credit agent, security agent, and joint and several creditor as of September 6, 2010. 

 Borrower’s
Account means a Euro-denominated account and a Ruble-denominated account opened by the Borrower with the Credit Manager. 
 Credit
Manager’s Account means a correspondent account opened by the Credit Manager with VTB BANK (EUROPE) SE 0102758018 (BIC – 044525187, SWIFT – VTBRRUMM) or account No. 30101810700000000187 opened for payments in Rubles with the
Bank of Russia Main Branch for the Central Federal District, the City of Moscow. 
 SSK Account means any account opened by SSK with
the Credit Manager. 
 Pledge Manager’s Account means a correspondent account opened by the Pledge Manager with VTB BANK (EUROPE)
SE 0102758018 (BIC – 044525187, SWIFT – VTBRRUMM) or account No. 30101810700000000187 opened for payments in Rubles with the Bank of Russia Main Branch for the Central Federal District, the City of Moscow. 

  
 41 

 TARGET2 means the automated Trans-European express system for gross settlement in the
real-time mode that uses a single shared platform which was brought into operation on November 19, 2007. 
 Technical Failure
means: 
  

	 	(a)	 significant failure in those payment or communication systems or at those financial markets the operation of
which in each case is necessary for performing payments (or other transactions to be performed) pursuant to deals prescribed by Financial Documents, that occurs for reasons beyond control of either Party; or 

 

	 	(b)	 occurrence of an event that entails a failure (technical or system) in cash or settlement transactions of
either Party that prevents this or another Party to: 

  

	 	(i)	 perform its payment obligations under Financial Documents; or 

 

	 	(ii)	 communicate with other Parties with respect to Financial Documents, 

and which was not caused by the Party whose operations suffered the failure, and occurred for reasons beyond control of such Party. 

Tranche A means a part of the Credit provided to the Borrower hereunder that is no more than the Euro equivalent of one billion and four
million (1,004,000,000) US Dollars. 
 Tranche B means a part of the Credit provided to the Borrower hereunder that is no more than
the Euro equivalent of thirty-eight million US Dollars (USD 38,000,000). 
 Tranche C means a part of the Credit provided to the
Borrower hereunder that is no more than sixty billion four hundred million (60,400,000,000) Rubles. 
 Tranche D means a part of the
Credit provided to the Borrower hereunder that is no more than six billion five hundred million (6,500,000,000) Rubles. 
 Trader
means a person within the Mechel Group and/or affiliated with Mechel PJSC that performs the sale of the Mechel Group’s products to third parties that are not part of the Mechel Group and do not manufacture such products. 

Applicable Interest Rate means: 
  

	 	(a)	 eight point seventy five (8.75) per cent. per annum, where Net Debt/EBITDA is equal to or exceeds 6.01x;

  

	 	(b)	 nine point fifty (9.50) per cent. per annum, where Net Debt/EBITDA is equal to or exceeds 5.01x and does not
exceed 6.00x; 

  

	 	(c)	 ten point fifty (10.50) per cent. per annum, where Net Debt/EBITDA is equal to or exceeds 4.01x and does not
exceed 5.00x. 

 Net Debt/EBITDA shall be determined on the basis of the latest Compliance Certificate delivered under
clause 17.7(c) of Article 17 (Obligations to provide information). Prior to the delivery of a Compliance Certificate as at March 31, 2020, the Applicable Interest Rate shall be deemed to be equal to eight point seventy five (8.75) per
cent. per annum as of the date of Addendum 1. 
 The above definition is included solely for the purpose of calculation of the amount of
interest accrued that shall not be capitalized under clause (b) of Article 9.3 (Payment of Interest on Ruble-Denominated Outstanding Credit). 

  
 42 

 Management Company means: 

 

	 	(a)	 Mechel-Mining Management Company LLC; 

 

	 	(b)	 Mechel-Steel Management Company LLC; and 

 

	 	(c)	 Mechel-Trans Management Company LLC. 

Extension Conditions means that from and including the Restructuring Date to and including the date falling ten (10) Business Days
prior to the Original Final Repayment Date (the “Test Date”): 
  

	 	(a)	 no failure to perform or duly perform any payment obligation under a VTB Group Contract (including a Financial
Document) has occurred, where such failure is not waived by the relevant creditor; and 

  

	 	(b)	 no default under any obligation as set out in paragraph 1 of Appendix 9 (List of Breaches and Circumstances
to be Reviewed for the Purpose of Extension) has occurred, where such default is continuing as at the Test Date, as confirmed by the Borrower’s certificate signed by the Borrower’s authorized representative and certified by an
authorized representative of the Borrower’s auditor (to the extent such certificate can be so certified by the auditor); provided that the Creditors shall determine, at their own discretion, whether or not such default has occurred, and the
Credit Manager shall not be required to provide any proof to the Borrower; and 

  

	 	(c)	 no circumstance as set out in paragraph 2 of Appendix 9 (List of Breaches and Circumstances to be Reviewed
for the Purpose of Extension) has occurred, where such circumstance is continuing as at the Test Date (or, in relation to circumstances set out in paragraph 2(b) of Appendix 9 (List of Breaches and Circumstances to be Reviewed for the Purpose
of Extension), where such circumstance is in existence as at the Test Date), as confirmed by the Borrower’s certificate signed by the Borrower’s authorized representative and certified by an authorized representative of the
Borrower’s auditor (to the extent such certificate can be so certified by the auditor); provided that the Creditors shall determine, at their own discretion, whether or not such circumstance has occurred, and the Credit Manager shall not be
required to provide any proof to the Borrower. 

 Financial Document means: 

 

	 	(a)	 this Agreement; 

  

	 	(b)	 Guarantee; 

  

	 	(c)	 each Surety; 

  

	 	(d)	 each Security Agreement; 

 

	 	(e)	 each Creditor Rights Assignment Agreement; 

 

	 	(f)	 each Disbursement Request; 

 

	 	(g)	 Addendum 1; 

  

	 	(h)	 each New Financial Document; and 

 

	 	(i)	 any other document that the Credit Manager and the Borrower have agreed to consider a Financial Document in
writing. 

  
 43 

 Financial Debt means any debt of the Borrower or the Mechel Group of companies
(without double-entry accounting) accumulated as a result of: 
  

	 	(a)	 receipt of funds in the form of loan, credit, overdraft or project financing; 

 

	 	(b)	 capitalization of interest and other payments; 

 

	 	(c)	 receipt of a commodity credit, commercial credit for a period over one hundred and eighty (180) calendar
days, issue of a letter of credit and provision of bank guarantees upon the request of the Borrower and/or a Mechel Group company; 

  

	 	(d)	 issue of bonds, notes, promissory notes and any other debt instruments; 

 

	 	(e)	 conclusion of lease agreements which are/would be reported in the financial statements prepared in accordance
with the IFRS; 

  

	 	(f)	 sale or discounting of accounts receivable (excluding any receivables alienated without recourse);

  

	 	(g)	 conclusion of factoring contracts with recourse; 

 

	 	(h)	 transactions with derivative financial instruments in order to protect or benefit from any fluctuations of
rates, interest rates or prices; wherein the amount of transactions with such derivative instruments will be calculated based on market rates at any given time; 

 

	 	(i)	 conclusion of repo transactions or any other transactions that are in economic sense (or in accordance with
accounting rules) are borrowing; 

  

	 	(j)	 taking on liabilities to reimburse damages or losses from financial obligations incurred by third parties;

  

	 	(k)	 amounts obtained from the issue of redeemable shares; 

 

	 	(l)	 taking on obligations of sureties or guarantees in respect of execution of any obligations by third parties or
reimbursement of the amount of guarantee payment under the bank guarantee to the guarantor; record of such sureties is carried out on actual indebtedness for secured obligations, while sureties and guarantees of several Group companies are not
cumulative for one and the same undertaking; and 

 other deals (including but not limited to prepayment/prepaid supply
transactions for over 6 months), the commercial effect of which are borrowings, and financial instruments that are not specified in other subparagraphs of this definition qualified as borrowings in accordance with IFRS. 

Net Debt means an economic indicator equal to the Total Debt minus monetary funds or their equivalents (free from encumbrance in favour
of third parties) and calculated on the basis of the respective consolidated financial statements in accordance with IFRS. 
 Net Interest
Payments mean an economic indicator calculated for the latest twelve (12) months on the basis of the consolidated financial statements of the Mechel Group in accordance with IFRS which is equal to Interest Payment Expenses for such a period
minus Interest for this period. 
 Euro Equivalent means, with respect to any amount specified in US Dollars herein, the amount in
Euro resulting from converting US Dollars into Euro (a) at the Credit Manager cross rate (if necessary, taking account of the US Dollar/Ruble rate and Ruble/Euro rate of the Credit Manager) for the disbursement of Tranche A or Tranche D on the
respective Drawdown Date; or (b) using a different exchange rate determined on the basis of a separate agreement (if any) between the Credit Manager and the Borrower for Tranche A or Tranche B drawdown on the respective Drawdown Date. 

  
 44 

 EBITDA means an economic indicator equal to the consolidated net profit of the Mechel
Group according to IFRS prior to taking into account: 
  

	 	(a)	 any charge or payment with respect to corporate income tax; 

 

	 	(b)	 any interest, commissions, discounts, and other financial expenses (charged or received) with respect to the
Total Debt; 

  

	 	(c)	 any interest, commissions, discounts, and other financial expenses (charged or received) with respect to
monetary funds and their equivalents; 

  

	 	(d)	 any items that are deemed extraordinary or exceptional, including: 

 

	 	(i)	 expenses or proceeds relating to exchange differences; 

 

	 	(ii)	 results of revaluation, depreciation, or writing-off long-term assets
and any proceeds or expenses related to disposal of long-term assets of any company of the Mechel Group; 

  

	 	(iii)	 revaluation of contingent liabilities by any Mechel Group company; 

 

	 	(iv)	 any proceeds and expenses arising from ceased activities; 

 

	 	(v)	 any fines, penalties, and their waiver (including tax inspection); 

 

	 	(vi)	 any proceeds or expenses arising from disposal of interest in full or in part by any Mechel Group company;

  

	 	(e)	 amortization or impairment of intangible assets, including goodwill, and depreciation or impairment of tangible
assets; 

  

	 	(f)	 dividends paid and/or accrued by any Mechel Group company; 

 

	 	(g)	 any amounts related to minority interests; 

 

	 	(h)	 any write-off or reserves/write-offs for the indebtedness of related
parties or third-party contractors, 

  

	 	(i)	 as follows from consolidated financial statements of the Mechel Group, and corrected by: 

 

	 	(A)	 by including net profit before recognizing items (a) – (h) above (to be calculation by the same method as
EBITDA) related to any purchase during the reporting period before the time of purchase; 

  

	 	(B)	 by excluding net profit before recognizing items (a) – (h) above (to be calculation by the same method as
EBITDA) related to any disposal made during the reporting period before the time of disposal. 

  
 45 

	1.2	 Interpretation 

 

	 	(a)	 Unless otherwise follows from context, in this Agreement: 

 

	 	(i)	 a reference to the Credit Manager, Pledge Manager, Financing Party, Creditor, Liable Party or Party also means
the reference to their successors by force of law or hereof; 

  

	 	(ii)	 an agreed form of a document means a document agreed in writing by the Credit Manager and the Borrower, or a
document prepared in a form acceptable for the Credit Manager; 

  

	 	(iii)	 assets include any and all existing and future property, profits, and rights; 

 

	 	(iv)	 reference to a Financial Document or another contract, document, or financial instrument means such a Financial
Document or another contract, document or financial instrument with all its amendments and additions made at any moment; 

  

	 	(v)	 a person includes any individual, legal entity, public agency, government or state; 

 

	 	(vi)	 legislation means any law, resolution, decree, order, judgment, provision, rules, official instructions,
requirements or recommendations of any legislative or executive governmental, municipal, interstate or international body, ministry, department, service, agency or committee, or self-regulatory organization, or any judicial body;

  

	 	(vii)	 a reference to a legislative provision includes the reference to such a provision with all its amendments and
additions made at any moment; 

  

	 	(viii)	 Article, paragraph or Appendix means the reference to the article or paragraph hereof or appendix hereto; and

  

	 	(ix)	 daytime specification means Moscow time, unless otherwise is specified herein. 

 

	 	(b)	 Unless the context requires otherwise, a reference to a month means the period starting on one of
calendar month days and ending at the same day of the following calendar month, except for the following: 

  

	 	(i)	 if the respective day is not a Business Day, such period ends or, depending on the context, such date falls on
the next Business Day (if any) of that month or (if not) on the previous Business Day; and 

  

	 	(ii)	 if there is no such date within the respective month, such a period shall end on the last Business Day of that
month. 

  

	 	(c)	 Except as otherwise provided herein, interest and remunerations to be paid by a Liable Party under any
Financial Document shall be accrued in accordance with the provisions of the respective Financial Document and calculated based on the actual number of past days and the year duration of three hundred and sixty five (365) days or three hundred
and sixty six (366) days (according to the actual number of calendar days in the year). 

  

	 	(d)	 Unless this Agreement provides otherwise, for the purpose of calculation of the relevant proportion in
connection with the repayment of Outstanding Credits, a Ruble-Denominated Outstanding Credit shall be converted into Euro at the official exchange rate of the Central Bank of the Russian Federation as at the date of payment. 

 

	 	(e)	 The headings in this Agreement shall not affect the meaning hereof. 

 

	 	(f)	 The word continuing (or similar expression) means, if used: 

 

	 	(i)	 in relation to an Event of Default, that was not duly consented to or waived by the Creditors;

  
 46 

	 	(ii)	 in relation to a Default on Obligations (other than an Event of Default), that no notice from the Credit
Manager has been received confirming that such Default on Obligations was not duly consented to or waived by the Creditors nor was it remedied (if capable of remedy); and 

 

	 	(iii)	 in relation to a default under any obligation for the purpose of paragraph (b) of the definition
“Extension Conditions” or any other circumstance for the purpose of paragraph (c) of the definition “Extension Conditions”, that no notice from the Credit Manager has been received confirming that such default or another
circumstance was not duly consented to or waived by the Creditors and it was not remedied (if capable of remedy) within the term specified in Appendix 9 (List of Breaches and Circumstances to be Reviewed for the Purpose of Extension).

  

	2.	 SCOPE OF THE AGREEMENT 

 

	2.1	 Credit relations within a syndicated credit 

 

	 	(a)	 As long as the Borrower complies with the provisions hereof, each Creditor shall in concert with other
Creditors issue Credit to the Borrower within its Available Facility, and the Borrower shall properly perform its obligations hereunder during the effective term hereof, including the obligation to repay each Creditor the Outstanding Credit amount
received from it, pay interest on it, and pay other amounts to Financing Parties that are provided for by the Agreement as set forth herein. 

  

	 	(b)	 In order to apply the provisions of the Law on syndicated credits, Creditors hereunder shall be considered
participants of a lending syndicate. 

  

	 	(c)	 Obligation of each Creditor to issue Credit to the Borrower within its Available Facility arises as soon as the
Borrower fully performs the requirements of Article 4 (Terms of Credit). 

  

	 	(d)	 Each Creditor has its individual and independent right to claim the Borrower to repay the Outstanding Credit,
interests or make other payments provided for by the provisions hereof, in proportion to the amount of Credit issued by the respective Creditor, which shall not be affected by other Creditors’ rights to lay claims to the Borrower. Except for
cases or upon occurrence of circumstances prescribed hereby, each Financing Party is entitled to independently enforce its claims under Financial Documents. 

  

	 	(e)	 None of the Financing Parties shall be held liable for obligations of other Financing Parties under Financial
Documents. For the avoidance of doubt, each Creditor shall not be held liable for non-performance of any obligations by other Creditors with respect to issuing Credit to the Borrower. If any Creditor refuses
to issue Credit on the grounds mentioned in Article 6 (Discharge of the Creditor’s Obligation), as well as in case when any Creditor’s breach of its obligation to issue Credit within its Available Facility, the amount of Credit
shall be reduced by the amount Available Facility of such a Creditor. 

  

	2.2	 Agency  

This Agreement prescribes the terms and the procedure for the appointment of the Credit Manager and the performance of legal and other
activities by the Credit Manager on behalf of, in favour of and at the expense of Creditors. The powers of the person performing the functions of the Credit Manager are determined pursuant to Article 23.2 (Appointment of the ).  

  
 47 

	2.3	 Pledge management agreement 

This Agreement prescribes the terms and the procedure for the appointment of the Pledge Manager and the performance of legal and other
activities by the Pledge Manager on behalf of, in favour of and at the expense of Creditors. The powers of the person performing the functions of the Pledge Manager are determined pursuant to Article 21.2 (Status of Creditors and Appointment of
the Pledge Manager). 
  

	2.4	 Legal nature of the Agreement 

This Agreement is of the mixed type containing elements of a syndicated credit agreement, agency agreement, pledge management agreement, and
interloan agreement. As a result, this Agreement also regulates the relationship between Creditors, between the Credit Manager and Creditors, between the Pledge Manager and Creditors, and between the Borrower, Credit Manager and Pledge Manager. 

 

	3.	 PURPOSE 

  

	3.1	 The Borrower shall use: 

 

	 	(a)	 Tranche A for the provision of: 

 

	 	(i)	 loans to SSK for the following purposes: 

 

	 	(A)	 payment of the Offer at a price no more than one hundred (100) of the nominal principal debt and interest
(including overdue and default) under Existing PXF Credit Agreements; and 

  

	 	(B)	 buyout of rights to claim under Existing PXF Credit Agreements of those PXF Creditors who refused to accept the
Offer at a price no more than one hundred (100) of the nominal principal debt and interest (including overdue and default) under Existing PXF Credit Agreements; and 

 

	 	(ii)	 intra-group loans to Mechel Group companies and further directing the funds to repay the debt under Existing
PXF Credit Agreements (but no more than the Euro equivalent of two hundred and twenty seven million (227,000,000) US Dollars; 

  

	 	(b)	 Tranche B for the financing of capital expenses, turnover capital and expenses related to routine activities of
the Borrower; 

  

	 	(c)	 Tranche C for the purpose of: 

 

	 	(i)	 full repayment of principal debt under Credit 3 and Credit 4; and 

 

	 	(ii)	 advancing loans to Mechel PJSC and Southern Kuzbass PJSC, provided that the proceeds of such loans shall be
further applied to repay principal debt under Credit 1 and Credit 2, respectively; and 

  

	 	(d)	 Tranche D for the purpose of: 

 

	 	(i)	 the Borrower fulfilling its Repurchase Obligation; or 

 

	 	(ii)	 financing the Borrower’s capital expenditures, replenishing its working capital and financing its
operating costs up to the amount of the Borrower’s own funds as applied by the Borrower for the purpose specified in sub-clause (i) of this clause (d); and 

 

	 	(iii)	 advancing loans to Mechel PJSC, provided that the proceeds of such loans shall be further applied by Mechel
PJSC to fulfill its Repayment Obligation; or 

  
 48 

	 	(iv)	 financing capital expenditures, replenishing the working capital and financing operating costs of the Borrower
and/or Mechel PJSC (including by way of the Borrower advancing a loan to Mechel PJSC) up to the amount of the Borrower’s and/or Mechel PJSC’s own funds as applied to procure the fulfillment by Mechel PJSC of its Repurchase Obligation.

  

	3.2	 The Credit shall not be used for the following purposes (directly or indirectly, via third parties):

  

	 	(a)	 discharge by the Borrower of other borrower’s liabilities to any of the Creditors, except for the cases
set forth directly in paragraphs 3.1(a)(ii) and 3.1(c)(ii) of Article 3.1 (Purpose); 

  

	 	(b)	 discharge by the Borrower of its obligations under any loan agreements with any of the Creditors, except as
expressly provided for by clause 3.1(c)(i) of Article 3.1 (Purpose); 

  

	 	(c)	 discharge by the Borrower its obligations to repay funds obtained from third parties, including other credit
organizations; 

  

	 	(d)	 promissory note acquisition and/or payment by the Borrower; 

 

	 	(e)	 equity securities acquisition and/or repayment, except as expressly provided for by clause 3.1(d)(i) of Article
3.1 (Purpose); 

  

	 	(f)	 purchase from the Creditors any property received by the Creditors as a compensation for the performance of
obligations of the Borrower in respect of previously granted Loans; 

  

	 	(g)	 invest in the authorized capital of third-party legal entities (including purchase of shares on the secondary
market); 

  

	 	(h)	 replenishment of bank accounts with other credit organizations; 

 

	 	(i)	 refinancing of earlier expenses of the Borrower, except as expressly provided for by clauses 3.1(d)(iii) and
3.1(d)(iv) of Article 3.1 (Purpose); 

  

	 	(j)	 deposit funds with Creditors or other banks; 

 

	 	(k)	 pay interest, commissions, remunerations, and cover the expenses of Financing Parties and Borrower under
Financial Documents; 

  

	 	(l)	 Tranche B – discharge by the Borrower of other borrowers’ obligations to other credit organizations;
and 

  

	 	(m)	 Tranche B – issuing loans to third parties by the Borrower. 

 

	3.3	 The use of the Loan by the Borrower for any purposes other than specified in this Agreement is prohibited.

  

	4.	 TERMS OF CREDIT 

 

	4.1	 Preliminary terms  

 

	 	(a)	 In accordance with Article 327.1 of the Civil Code, the Borrower shall do the following for the disbursement of
Credit: 

  

	 	(i)	 provide the Credit Manager with documents listed in Appendix 3 (Preliminary terms of
credit) and the information so that their form and contents are acceptable for the Credit Manager, perform the activities and meet the requirements listed in Appendix 3 (Preliminary terms of credit) in a form acceptable
for the Credit Manager (hereinafter – Preliminary terms); and 

  
 49 

	 	(ii)	 send a properly prepared Disbursement Request to the Credit Manager. 

 

	 	(b)	 The first Tranche A Disbursement Request may be sent by the Borrower upon the receipt by the Borrower and
Creditors of a notice from the Credit Manager via electronic mail about proper performance of the Preliminary terms for Tranche A by the Borrower. The first Tranche B Disbursement Request may be sent by the Borrower upon the receipt by the Borrower
and Creditors of a notice from the Credit Manager via electronic mail about proper performance of the Preliminary terms for Tranche B by the Borrower. The first Tranche C Disbursement Request may be sent by the Borrower upon the receipt by the
Borrower and Creditors of a notice from the Credit Manager via electronic mail about proper performance of the Preliminary terms for Tranche C by the Borrower. The first Tranche D Disbursement Request may be sent by the Borrower upon the receipt by
the Borrower and Creditors of a notice from the Credit Manager via electronic mail about proper performance of the Preliminary terms for Tranche D by the Borrower. 

 

	 	(c)	 A Disbursement Request in respect of Tranche C and Tranche D may be delivered by the Borrower upon:

  

	 	(i)	 the expiry of three (3) months after the end date of the moratorium declared in accordance with resolution
No. 428 dated 3 April 2020 of the Government of the Russian Federation or any other resolution of the Government of the Russian Federation declaring or extending an insolvency moratorium as provided for by article 9.1 of the Bankruptcy
Law; or 

  

	 	(ii)	 the termination of the insolvency moratorium and its effects in relation to the Liable Parties.

  

	 	(d)	 The Credit Manager may, based on the Decision of the Majority of Creditors, unilaterally waive any of the
Preliminary terms listed in Appendix 3 (Preliminary terms of credit) and the condition in (c) above. 

  

	4.2	 Submitting Disbursement Requests 

 

	 	(a)	 The Borrower may send to the Credit Manager in total: (i) up to thirteen (13) (inclusive) properly
prepared Disbursement Requests for Tranche A; (ii) up to ten (10) (inclusive) properly prepared Disbursement Requests for Tranche B; (iii) up to four (4) (inclusive) properly prepared Disbursement Requests for Tranche C; and (iv) up
to four (4) (inclusive) properly prepared Disbursement Requests for Tranche D, in each case, unless another number of Disbursement Requests is agreed between the Credit Manager and the Borrower. The first Disbursement Request must be submitted for
the purpose specified in paragraph 3.1(a)(i) of Article 3.1 (Purpose) exclusively to VTB Bank (Europe) SE as the PXF Creditor. 

  

	 	(b)	 The Credit Amount specified by the Borrower in a Disbursement Request in relation to Tranche A, Tranche B,
Tranche C or Tranche D shall not be more than the total amount of Unspent Available Facility for Tranche A, Tranche B, Tranche C or Tranche D, respectively. 

  

	 	(c)	 Unless otherwise is agreed with the Credit Manager, the Borrower shall submit the Disbursement Request to the
Credit Manager no later than at 11:00 am one (1) Business Day before the proposed Drawdown Date. 

  
 50 

	 	(d)	 The Disbursement Request shall be signed by an authorized person of the Borrower. The Disbursement Request
shall contain the requested Credit amount and Drawdown Date which must be a Business Day within the Credit Drawdown Period. 

  

	 	(e)	 The Borrower may not revoke the Disbursement Request that has been received by the Credit Manager.

  

	5.	 ALLOCATION OF CREDIT 

 

	 	(a)	 Once the Disbursement Request has been received, the Credit Manager shall immediately send a copy of the
Disbursement Request to each Creditor and inform each Creditor about the amount of its Proportional Share in the requested Credit. 

  

	 	(b)	 If circumstances specified in Article 6 (Discharge of the Creditor’s Obligation) do not occur, each
Creditor shall transfer the Euro Equivalent (in relation to Tranche A and Tranche B) or the Ruble Equivalent (in relation to Tranche C and Tranche D) amount to the Credit Manager that corresponds to its Proportional Share in the Credit requested by
the Borrower no later than at 12:00 on the Drawdown Date specified in the Disbursement Request. 

  

	 	(c)	 On the Drawdown Date, the Credit Manager shall transfer to the Euro-denominated Borrower’s Account or the
Ruble-denominated Borrower’s Account (as applicable) the Euro Equivalent (in relation to Tranche A and Tranche B) or the Ruble Equivalent (in relation to Tranche C and Tranche D) amount of Credit specified in the Disbursement Request but not
more than the amount of Credit obtained from Creditors. The date (day) of Credit issuance shall be the date (day) when the Credit amount is credited to the relevant Borrower’s Account. 

 

	6.	 DISCHARGE OF THE CREDITOR’S OBLIGATION 

 

	 	(a)	 Obligation of each Creditor to provide Credit to the Borrower shall be fully or partially discharged as the
case may be: 

  

	 	(i)	 if the amount of issued Credit is equal to the Available Facility of the respective Creditor;

  

	 	(ii)	 upon expiration of the Credit Drawdown Period; and 

 

	 	(iii)	 in cases provided for by legislation. 

 

	 	(b)	 Each Creditor may refuse to perform its obligations to issue Credit to the Borrower: 

 

	 	(i)	 on the occurrence of a Default; or 

 

	 	(ii)	 on the occurrence of circumstances mentioned in Article 8.1 (Illegality). 

If a Creditor refuses to issue Credit on the grounds mentioned in this Article, the Parties agree that such Creditor shall not be held liable
to the Borrower or to any other Financing Party for such a refusal to issue the Credit. 
  

	7.	 REPAYMENT OF CREDIT 

 

	 	(a)	 Subject to clause (c) below, the Borrower shall repay the Euro-Denominated Outstanding Credit in
instalments by making payments to the Euro-denominated Credit Manager’s Account in accordance with the schedule set out in Part 1 (Euro-Denominated Outstanding Credit) of Appendix 2 (Repayment Schedule).

  
 51 

	 	(b)	 Subject to clause (c) below, the Borrower shall repay the Ruble-Denominated Outstanding Credit in
instalments by making payments to the Ruble-denominated Credit Manager’s Account in accordance with the schedule set out in Part 3 (Ruble-Denominated Outstanding Credit) of Appendix 2 (Repayment Schedule).

  

	 	(c)	 If all Extension Conditions are satisfied as at the Test Date, of which the Credit Manager shall notify the
Borrower in writing within ten (10) Business Days from the Test Date, then as of the Original Final Repayment Date (inclusive) the Borrower shall: 

  

	 	(i)	 repay the Euro-Denominated Outstanding Credit in instalments by making payments to the Credit Manager’s
Account in Euro in accordance with the schedule set out in Part 2 (Euro-Denominated Outstanding Credit (Extension)) of Appendix 2 (Repayment Schedule); 

 

	 	(ii)	 repay the Ruble-Denominated Outstanding Credit in instalments by making payments to the Credit Manager’s
Account in Rubles in accordance with the schedule set out in Part 4 (Ruble-Denominated Outstanding Credit (Extension)) of Appendix 2 (Repayment Schedule). 

 

	 	(d)	 The delivery of a notice under clause (c) above by the Credit Manager to the Borrower shall not constitute
a notice by the Creditor of the Creditors’ consent or waiver in relation to any Event of Default specified in Article 20 (Events of Default). 

  

	8.	 EARLY REPAYMENT AND REFUSAL OF THE CREDIT 

 

	8.1	 Illegality 

If the provision of Credit to the Borrower and/or participating in it becomes illegal for any Creditor pursuant to any applicable legislation,
then: 
  

	 	(a)	 such Creditor shall serve the respective notice to the Credit Manager and the Borrower as soon as practicable;

  

	 	(b)	 any default obligation of such Creditor with respect to the provision of Credit shall be discharged on the date
of notice mentioned in paragraph (a) above; and/or 

 The Borrower shall repay the amount of the Proportional Share of
such Creditor in the Credit or its respective part specified by the Creditor in the notice sent to the Credit Manager and the Borrower on the date specified by the Creditor in the notice sent to the Credit Manager and the Borrower which shall not be
earlier than the date prescribed by the law. 
  

	8.2	 Credit waiver  

 

	 	(a)	 During the Credit Drawdown Period, the Borrower has the right to
one-time waiver of the disbursement of the entire Credit or its part by sending prior notice to the Credit Manager. 

  

	 	(b)	 The Borrower’s waiver of the entire Credit disbursement reduces the Total Available Facility to zero on
the fifth (5) Business Day from the date of sending the notice to the Credit Manager by the Borrower; and, starting from the above-mentioned date of the reduction of the Total Available Facility to zero, no commissions shall be accrued with
respect to the obligation pursuant to Article 12.1 (Commission for the obligation) below. 

  

	 	(c)	 The Borrower’s waiver of the disbursement of a part of the Credit reduces the Available Facility of each
Creditor on the fifth (5) Business Day from the date of sending the notice to the Credit Manager by the Borrower; and, starting from the above-mentioned date of the 

  
 52 

	 	
reduction of the Available Facility, commissions with respect to the obligation pursuant to Article 12.1 (Commission for the obligation) below shall be accrued on the respectively reduced
amount of the total Unspent Available Facility. 

  

	8.3	 Voluntary early repayment of Outstanding Credit  

 

	 	(a)	 Except for cases mentioned in clauses (c) and (d) of Article 8.3, Article 8.4 (Mandatory early
repayment of Outstanding Credit ) and Article 8.5 (Rights to the replacement, repayment or cancellation with respect to a certain Creditor) below, the Borrower may use the right to early repayment of the Euro-Denominated Outstanding
Credit or any part of it only after forty two (42) months since the date of Addendum 1 and, in case of extension of a Credit under clause (b) of Article 7 (Repayment of Credit), after eighteen (18) months since the Original
Final Repayment Date, in each case, as long as all of the following conditions are met: (a) a prior notice shall be sent to the Credit Manager no later than seven (7) Business Days before the proposed early repayment of the
Euro-Denominated Outstanding Credit (unless a shorter notice period is agreed with the Majority of Creditors); and (b) repayment shall be performed within five (5) Business Days before the Interest Payment Date. 

 

	 	(b)	 Except as provided for by clauses (c) and (d) of this Article 8.3, Article 8.4 (Mandatory early
repayment of Outstanding Credit) and Article 8.5 (Right to the replacement or repayment and cancellation with respect to a certain Creditor) below, the Borrower may at any time prepay the Ruble-Denominated Outstanding Credit in full or in
part, provided that all of the following conditions are satisfied: (a) a prepayment notice is delivered to the Credit Manager at least seven (7) Business Days prior to the prepayment (unless a shorter notice has been agreed with the
Majority of Creditors); and (b) the repayment is made within five (5) Business Days prior to an Interest Payment Date. 

  

	 	(c)	 In case of an assignment or transfer of all rights and/or obligations of a creditor hereunder to a person who
is not within the VTB Group, the Borrower may prepay the Outstanding Credit in full, provided that a prepayment notice is delivered to the Credit Manager at least seven (7) Business Days prior to the prepayment (unless a shorter notice has been
agreed with the Majority of Creditors). 

  

	 	(d)	 In case of an assignment or transfer of all rights and/or obligations of a creditor hereunder to a person who
is not within the VTB Group, the Borrower may prepay the Outstanding Credit in part, provided that a prepayment notice is delivered to the Credit Manager at least seven (7) Business Days prior to the prepayment (unless a shorter notice has been
agreed with the Majority of Creditors). 

  

	8.4	 Mandatory early repayment of Outstanding Credit  

Starting from the Restructuring Date, if the said debt of Mechel Group to any Other Senior Creditor reduces, then the Borrower shall on the day
of such reduction offer the Credit Manager early repayment of Mechel Group’s debt to VTB Group (Including Outstanding Credit hereunder) to a portion of the debt of Mechel Group to VTB Group that is not less than the portion that corresponds to
the amount by which the indebtedness of Mechel Group to VTB Group is reduced (to the corresponding reduction) in the aggregate amount of indebtedness of Mechel Group to the Other Senior Creditor; 

If the Credit Manager (acting on the basis of the Decision of the Majority of Creditors) agrees to such repayment of debt within fifteen
(15) Business Days after the receipt of the Borrower’s offer, the Borrower shall perform such repayment within ten (10) Business Days after the date of the receipt of the consent from the Credit Manager (unless another time period is
agreed between by the Credit manager and the Borrower). 

  
 53 

	8.5	 Right to the replacement or repayment and cancellation with respect to a certain Creditor

  

	 	(a)	 If: 

  

	 	(i)	 any amount to be paid by a Liable Party to any Creditor must be increased pursuant to Article 13.1
(Reimbursement for a Tax Deduction); 

  

	 	(ii)	 any Creditor claims reimbursement from the Borrower pursuant to Article 13.2 (Reimbursement relating to Tax
payment) or payment of an amount pursuant to Article 14 (Additional Expenses); 

  

	 	(iii)	 at any moment but no longer than three (3) months prior to the earliest Date of FATCA Application with
respect to a certain payment made by either Party to a Creditor (or by Credit Manager to the Creditor’s account), such Creditor is no longer the FATCA Exempt Party, and due to this fact the Party must perform FATCA Deduction from the amount of
payment made to such a Creditor (or by Credit Manager to the Creditor’s account) on the FATCA Application Date or afterwards; or 

  

	 	(iv)	 any Creditor does not give its consent with respect to agreement, modification or cancellation of a Financial
Document condition upon the Borrower’s request if: 

  

	 	(A)	 the agreement, modification or cancellation of a Financial Document condition require the consent of all
Creditors; 

  

	 	(B)	 at least fifteen (15) Business Days passed since the Borrower announces the request to agree, modify or
cancel any condition of a Financial Document; and 

  

	 	(C)	 The Majority of Creditors gave their consent with respect to agreement, modification or cancellation of a
Financial Document condition, 

 the Borrower may: (i) until the circumstances on which the request of such increase
or reimbursement is based remain in the effect, or (ii) until the FATCA Deduction remains in the effect or (iii) for the purposes of paragraph (iv) above, within ninety (90) days since the Borrower’s announcement of the
request to agree, modify or cancel a condition of a Financial Document – serve notice to the Credit Manager of early repayment or cancellation with respect to such Creditor or of its intention to replace such Creditor pursuant paragraph
(d) below. 
  

	 	(b)	 Upon the receipt of the notice about the early repayment and cancellation provided for by paragraph
(a) above: 

  

	 	(i)	 obligations of the respective Creditor to issue Credit to the Borrower shall be immediately reduced to zero;
and 

  

	 	(ii)	 the Borrower shall perform repayment or early repayment of such Creditor’s participation share in each
Credit on the date specified in paragraph (c) below. 

  

	 	(c)	 The date of the repayment or early repayment of the Creditor’s participation share in any Credit shall be:

  

	 	(i)	 the last day of the current Interest Period for such Credit; or 

 

	 	(ii)	 if it occurs earlier, the date specified by the Borrower in the notice served pursuant to the paragraph
(a) above. 

  
 54 

	 	(d)	 Upon occurrence of circumstances mentioned in paragraph (a) above, the Borrower may serve prior notice to
the Credit Manager but not later than five (5) Business Days about the replacement of such Creditor and demand that such Creditor (and the Creditor shall, to the extent permitted by law) transfer all its rights and obligations with respect to
all Financial Documents which the Creditor is party to. 

  

	 	(e)	 The acceptor shall be a Creditor or another bank, financial organization, trust, fund, or another legal entity
at the Borrower’s discretion: 

  

	 	(i)	 that confirms its readiness to accept and accepts all the obligations of the transferring Creditor in
accordance with this Agreement at the purchase price, to the extent of the outstanding principal amount of such Creditor’s participation share in the Outstanding Credit, together with any accrued interest and other amounts due in this respect
pursuant to Financial Documents; and 

  

	 	(ii)	 that meets all the requirements for the results of customer identification, sanctions compliance checks or
other similar checks performed by the respective Financing Parties or with respect to them pursuant to any applicable law or regulation related to the respective transfer. 

 

	 	(f)	 Conditions for the replacement of a Creditor pursuant to paragraph (d) above are as follows:

  

	 	(i)	 the Borrower may not replace the Credit Manager; 

 

	 	(ii)	 neither the Credit Manager, nor any Creditor are obliged to search for the replacement Creditor; and

  

	 	(iii)	 The Creditor replaced pursuant to paragraph (d) above shall not be liable to pay or waive any commissions
received by such Creditor in accordance with the Financial Documents. 

  

	8.6	 Conditions for early repayment of the Outstanding Credit 

 

	 	(a)	 Except as provided for by clause (d) of Article 8.3 (Voluntary early repayment of Outstanding
Credit) and Article 8.5 (Right to the replacement or repayment and cancellation with respect to a certain Creditor), early partial repayment of the Outstanding Credit shall proportionally reduce the amount of the Borrower’s
obligation to repay the Outstanding Credit to each Creditor. Such an early repayment shall be used to repay the Outstanding Credit, payment dates of which occur in chronological order. 

 

	 	(b)	 Subject to clause (d) below, where a prepayment hereunder is permitted simultaneously in relation to the
Euro-Denominated Outstanding Credit and the Ruble-Denominated Outstanding Credit, the amount of such prepayment shall be applied on a pro rata basis towards the prepayment of the Euro-Denominated Outstanding Credit and the Ruble-Denominated
Outstanding Credit. 

  

	 	(c)	 Where a prepayment hereunder is made in relation to the Euro-Denominated Outstanding Credit, the amount of such
prepayment shall be applied on a pro rata basis towards the prepayment of the Outstanding Credit under Tranche A and the Outstanding Credit under Tranche B. 

  

	 	(d)	 Where a prepayment hereunder is made in relation to the Ruble-Denominated Outstanding Credit, the amount of
such prepayment shall be first applied towards the prepayment of the Outstanding Credit under Tranche D. 

  
 55 

	 	(e)	 The early repayment of the Euro-Denominated Outstanding Credit shall be performed in Euro, and the early
repayment of the Ruble-Denominated Outstanding Credit shall be performed in Rubles. 

  

	8.7	 General Provisions 

 

	 	(a)	 The Borrower may not revoke its notices on early repayment of the Outstanding Credit or any part of it or on
waiver of Credit or any part of it. Such a notice shall specify the respective date of repayment (waiver) and the amount of early repayment of the Outstanding Credit (Credit amount waived by the Borrower). 

 

	 	(b)	 If the Credit Manager receives a notice pursuant to this Article 8 (Early repayment and refusal of the
Credit), it shall send a copy of such a notice to the receiving Party within the same Business Day. The Credit Manager shall notify all Creditors about the receipt of any such notice within one (1) Business day after the receipt of such
notice. 

  

	 	(c)	 In case of any early Outstanding Credit repayment, the Borrower shall repay the Outstanding Credit together
with any interest and other due amounts accrued on its amount as of the repayment date. 

  

	 	(d)	 The Borrower may not perform early repayment of the Outstanding Credit or any part of or refuse the Credit or
any part of it on conditions that are not directly set forth herein. 

  

	 	(e)	 The Borrower is not entitled to submit the Disbursement Request for the amount of Credit that was waived by the
Borrower, as well as for the amount of early repayment of the Outstanding Credit by the Borrower. 

  

	9.	 INTEREST 

  

	9.1	 Interest calculation 

 

	 	(a)	 The Interest Rate on the Outstanding Credit under Tranche A and Tranche B for each Interest Period is an annual
percentage rate equal to the amount of: 

  

	 	(i)	 Margin; and 

  

	 	(ii)	 EURIBOR. 

  

	 	(b)	 The Interest Rate on the Outstanding Credit under Tranche C and Tranche D for each Interest Period shall be the
CBR Key Rate multiplied by one point five (1.5) per cent. per annum (hereinafter, the Basic Interest Rate). 

  

	 	(c)	 Amounts due to repayment of interest by the Borrower shall be calculated by the simple interest formula as
continuously progressive total for the actual number of days of using the Outstanding Credit, and the year shall be taken equal to 365 or 366 days according to the actual number of calendar days in the year. 

 

	 	(d)	 Interest is accrued on the amount of the Outstanding Credit from the date following the Drawdown Date till the
final repayment date for the Outstanding Credit inclusive. 

  

	9.2	 Interest payment in relation to a Euro-Denominated Outstanding Credit 

The Borrower shall pay interest accrued on the Euro-Denominated Outstanding Credit to the Credit Manager in favour of Creditors on each
Interest Payment Date. 

  
 56 

	9.3	 Interest payment in relation to a Ruble-Denominated Outstanding Credit  

 

	 	(a)	 Subject to clause (d) below and Article 9.4 (Interest rate revision by Creditors), on each Interest
Payment Date, the Borrower shall pay to the Credit Manager for the account of the Creditors interest accrued on the Ruble-Denominated Outstanding Credit and calculated on the basis of the Basic Interest Rate or, if the Basic Interest Rate is higher
than the relevant Applicable Interest Rate, the relevant Applicable Interest Rate. 

  

	 	(b)	 Subject to clause (d) below, if the Basic Interest Rate exceeds the Applicable Interest Rate, then
interest accrued at the Basic Interest Rate which is unpaid under clause (a) above shall be capitalized (added to the principal debt) on each Interest Payment Date and paid on the Original Final Repayment Date or, in case of extension of the
Credit under clause (d) of Article 7 (Repayment of Credit), the Final Repayment Date. 

  

	 	(c)	 The Applicable Interest Rate shall apply throughout the Interest Period following the Interest Period during
which the latest compliance certificate has been delivered, provided that, in relation to an Interest Period during which a compliance certificate has been delivered, the previous Applicable Interest Rate shall apply. 

 

	 	(d)	 If the Net Debt / EBITDA ratio is equal to or less than 4,00x, then, starting from the Interest Period
following the Interest Period during which the Compliance Certificate specifying such ratio has been delivered, interest accrued at the Basic Interest Rate shall be paid in full and the interest capitalization provisions shall not apply.

  

	 	(e)	 If the Basic Interest Rate is equal to or less than the relevant Applicable Interest Rate, then the interest
capitalization provisions shall not apply and interest accrued at the Basic Interest Rate shall be paid in full. 

  

	9.4	 Interest rate revision by Creditors 

 

	 	(a)	 In case of nonperformance/improper performance of the obligation under Paragraph 18.1(j) of Article 18.1
(General Obligations and obligations to Comply with Financial Indicators) of this Agreement, the Credit Manager shall have the right, on the basis of the Decision of the Majority of Creditors, to unilaterally increase the effective interest
rate by one (1) percent per annum. 

  

	 	(b)	 In cases provided for by clauses 4.2 and 4.3 of Addendum 1, the Credit Manager may at its own discretion
increase the effective interest rate by two (2) per cent. per annum. 

  

	 	(c)	 For the avoidance of doubt, in relation to a Ruble-Denominated Outstanding Credit, in cases specified in
clauses (a) and (b) above, the Basic Interest Rate or the relevant Applicable Interest Rate (depending on which rate would apply for the purpose of calculation of interest under Article 9.3 (Interest payment in relation to a
Ruble-Denominated Outstanding Credit) in the absence of such increase) shall be increased, and interest accrued at such increased rate shall not be capitalized to the extent such interest exceed the amount of interest accrued at the Basic
Interest Rate or the relevant Applicable Interest Rate (as applicable) before any such increase. 

  

	 	(d)	 The interest rate revised under clause (a) above shall become effective from the commencement date of the
Interest Period following the Interest Period in which the breach of the relevant obligation or condition was detected and before (and including) the commencement date of the Interest Period following the Interest Period in which such obligation
and/or condition was duly performed. 

  
 57 

	 	(e)	 The interest rate as revised under clause (a) above shall be considered to be revised without concluding
an addendum. In this case the Credit Manager shall send to the Borrower a written notice (in no particular form) on the increase of the interest rates by courier or registered mail with a schedule of enclosures and an acknowledgment of receipt.

  

	 	(f)	 A copy of the notice referred to in clause (e) above shall be forwarded within five (5) business days
from the date of sending a written notice to eshaposhnikova@mechel.ru and corpfin@mechel.com. The Borrower shall be deemed to receive the interest rate increase notice from the time when it receives a notice specified in Paragraph (d) above
even if no notice copy was received at the specified email addresses as provided by this paragraph. The Borrower shall be fully liable for any unauthorized disclosure of confidential information or its receipt by an unauthorized person, where such
disclosure or receipt has occurred as a result of such notice/communication being sent by email, and the Borrower shall not be entitled to make any claim against the Financing Parties in that regard. 

 

	 	(g)	 In this case a unilateral increase of the interest rate by the Credit Manager in accordance with clause
(a) above shall not deprive the Financing Party of its right to unilaterally require the Borrower, the Sureties and the Guarantor to perform their obligations under Financial Documents prior to maturity in accordance with Article 20.2
(Acceleration) in the future. 

  

	 	(h)	 Any change in the interest rate under clauses 4.2 and 4.3 of Addendum 1 shall be effected as set out in
Addendum 1. 

  

	9.5	 Penalty 

  

	 	(a)	 The Borrower shall be liable for non-performance or improper
performance of its obligations under Financial Documents to which it is a party, in particular, in case of delay in performance. 

  

	 	(b)	 In case of late repayment of indebtedness on the Outstanding Credit, the Borrower shall, regardless of interest
payment, pay to the Credit Manager (in favour of Creditors) a penalty (fine) in the amount of one three hundred and sixty fifth/one three hundred and sixty sixth (1/365 (1/366)) of the interest rate which would apply if the overdue amount for the
whole non-payment period is equal to the Outstanding Credit in the currency of the overdue amount during the successive Interest Periods each equal to the time specified in Article 10.1 (Time of Interest
Periods) of the overdue indebtedness on the Outstanding Credit for each day of delay. Penalty value shall be rounded to the second digit after the point. The penalty shall be calculated starting from the date following the date on which the
obligation to repay indebtedness under the Outstanding Credit was due and till the date of final repayment of overdue indebtedness under the Outstanding Credit. The penalty (fine) shall be paid by the Borrower on the date of final repayment of the
corresponding overdue indebtedness under the Outstanding Credit. 

  

	 	(c)	 In case of late repayment of indebtedness on the interest/commission fees, the Borrower shall pay to the Credit
Manager (in favour of Creditors) a penalty (fine) in the amount of two three hundred and sixty fifth/one three hundred and sixty sixth (2/365 (1/366)) of the interest rate which would apply if the overdue amount for the whole non-payment period is equal to the Outstanding Credit in the currency of the overdue amount during the successive Interest Periods each equal to the time specified in Article 10.1 (Time of Interest Periods)
of the overdue indebtedness on the interest and/or commission fees and/or other payments on the Financial Documents for each day of delay. Penalty value shall be rounded to the second digit after the point. The penalty shall be calculated starting
from the date following the date on which the obligation to pay interest and/or commission fees was due and till the date of final repayment of overdue indebtedness under interest and/or commission fees. The penalty (fine) shall be paid by the
Borrower on the date of final repayment of the corresponding overdue indebtedness under interest and/or commission fees. 

  
 58 

	 	(d)	 For the purposes of Paragraphs (b) and (c) above, if any overdue amount was due on the date other than the
last day of the Interest Period, then the time of the first Interest Period for such an overdue amount will be equal to the non-overdue part of the corresponding current Interest Period. 

 

	 	(e)	 The Borrower shall pay a penalty (fine) in the amount of ten thousand (10,000) rubles for each case of non-performance or improper performance of each of the obligations specified in Paragraphs 17.7(a) and 17.7(b), Article 17.7 (Obligations to provide information) hereof. The penalty (fine) shall be paid by
the Borrower within ten (10) calendar days after receiving the Credit Manager request to pay the penalty (fine). 

  

	 	(f)	 The date of penalty (fine) recognition by the Borrower shall be the date when the Credit Manager actually
receives funds transferred by the Borrower in connection with (penalty (fine) payment. 

  

	 	(g)	 The penalty provided by this Agreement shall not cover damaged incurred by the Financing Parties that shall
have the right to charge such damages in full from the Borrower in addition to the penalty. 

  

	9.6	 Interest notice 

The Credit Manager shall, on the Interest Rate Determination Date, notify each Party on the interest rate value and the amount of interest
accrued on the amount of the Euro-Denominated Outstanding Credit and to be paid by the Borrower on the Interest Payment Date. 
  

	10.	 INTEREST PERIODS 

 

	10.1	 Time of Interest Periods 

 

	(a)	 Each Interest Period shall be equal to one month. 

 

	(b)	 The first Interest Period for each Outstanding Credit shall begin on the corresponding Drawdown Date and end on
the Interest Payment Date following this Drawdown Date and including this Interest Payment Date. 

  

	(c)	 Each subsequent Interest Period shall begin on the day directly following the last day of the preceding
Interest Period and end directly on the next Interest Payment Date (inclusive). 

  

	(d)	 The last Interest Period shall always end on the Original Final Repayment Date or, where a Credit is extended
under clauses (b) and (d) of Article 7 (Repayment of Credit), the Final Repayment Date. 

  

	11.	 CHANGES IN THE INTEREST CALCULATION PROCEDURE 

 

	11.1	 Market Disruption  

 

	 	(a)	 If Market Disruption occurred and still under way, then the interest rate as regards the Pro Rata Share of each
Creditor in the Euro-Denominated Outstanding Credit for each Interest Period following the Interest Period during which Market Disruption occurred shall be the interest rate calculated by adding: 

 

	 	(i)	 Margin; to 

  

	 	(ii)	 each rate on which each Creditor notifies the Credit Manager within the shortest time till the specified
interest payment date for this Interest Period, and which, expressed in per cent per annum, reflects expenses incurred by each Creditor on financing its Pro Rata Share in the Euro-Denominated Outstanding Credit from any sources available for the
Creditor to choose from. 

  
 59 

	 	(b)	 The Credit Manager shall immediately inform the Borrower of the rates reported by each Creditor and provide the
Borrower with the calculation of the interest amount to be paid by the Borrower to the Credit Manager for the corresponding Interest Period based on the Pro Rata Share of each Creditor in the Euro-Denominated Outstanding Credit.

  

	 	(c)	 The interest rate calculated in accordance with this Article 11.1 (Market Disruption) shall apply to the
Euro-Denominated Outstanding Credit until (1) Market Disruption ends, or (2) the interest rate is agreed in accordance with Article 11.2 (Alternative interest calculation procedure). 

 

	11.2	 Alternative interest calculation procedure 

 

	 	(a)	 If Market Disruption occurs and it is impossible to implement the Article 11.1 (Market Disruption)
provisions, as the Credit Manager or the Borrower requires, the Credit Manager and the Borrower shall enter into negotiations (that shall be no longer than thirty (30) days from the time when a relevant request is received) to agree upon an
alternative mechanism for determining the interest rate on the Euro-Denominated Outstanding Credit. 

  

	 	(b)	 Subject to a written consent of all the creditors and the Borrower, the mechanism for determining the interest
rate on the Euro-Denominated Outstanding Credit agreed upon in accordance with Paragraph (a) above shall become binding for all the Parties. 

  

	12.	 REMUNERATION OF THE FINANCING PARTIES 

 

	12.1	 Commission for the obligation 

 

	 	(a)	 The Borrower shall pay to the Credit Manager (in favour of the Creditors) a commission for the obligation
calculated at a rate of zero point sixty-five (0.65) per cent per annum of the total Unspent Lending Limit amount in relation to Tranche A and Tranche B. This remuneration shall be accrued during the Disbursement Period that applies to Tranche A and
Tranche B and paid on each Interest Payment Date. 

  

	 	(b)	 The Borrower shall pay to the Credit Manager (for the account of the Creditors) a commission for the obligation
in the amount equal to zero point five (0.5) per cent. per annum of the Unspent Available Facility in relation to Tranche D. The commission shall accrue during the Drawdown Period that applies to Tranche D, and shall be payable on each Interest
Payment Date. 

  

	12.2	 Utilization Fee 

On each Drawdown Date in relation to Tranche D, the Borrower shall pay to the Credit Manager (for the account of the Initial Creditors) a
utilization fee in the amount equal to zero point five (0.5) per cent. of the amount utilized under Tranche D. 
  

	12.3	 Remuneration of the Credit Manager and the Pledge Manager 

 

	 	(a)	 The Creditors shall pay to the Pledge Manager a remuneration for pledge management services provided by this
Agreement that are necessary to establish and maintain security provided by Security Agreements in the amount of one hundred (100,000) rubles (plus VAT at a current rate) annually by wire transfer to the Pledge Manager’s Account within
(i) ten (10) business days from the date of this Agreement and then (ii) five (5) business days from the date of a corresponding invoice issued by the Credit Manager. 

  
 60 

	 	(b)	 The Creditors shall pay to the Credit Manager a remuneration for acting as a Credit Manager under this
Agreement in the amount of one hundred (100,000) rubles (plus VAT at a current rate) annually by wire transfer to the Credit Manager’s Account within (i) ten (10) business days from the date of this Agreement and then (ii) five (5)
business days from the date of a corresponding invoice issued by the Credit Manager. 

  

	 	(c)	 In accordance with Article 313 of the Civil Code, the Creditors hereby entrust the Borrower with their
obligations to pay the Credit Manager’s and Pledge Manager’s remunerations as well as to reimburse the Credit Manager and the Pledge Manager for expenses provided by Article 15 (Reimbursement). The Borrower shall reimburse directly
the Credit Manager and the Pledge Manager for all the remunerations and expenses specified above in accordance with Paragraphs (a) and (b) above, and the Borrower agrees with this. 

 

	13.	 TAXES 

  

	13.1	 Reimbursement for a Tax Deduction 

 

	 	(a)	 As soon as the Liable Party or the Creditor becomes aware of the fact that any Liable Party shall make a Tax
Deduction (or that the Tax Deduction rate or base was changed), the Liable Party or the Creditor (depending on circumstances) shall inform the Credit Manager thereof. Shall the Credit Manager receive such a notice from the Creditor, it shall inform
the relevant Liable Party accordingly. 

  

	 	(b)	 If in accordance with applicable law the Liable Party is obliged to make the Tax Deduction regarding any amount
to be paid to the Financing Party under the Financial Documents, then the amount to be paid by the Liable Party to the Financing Party shall be increased so that after the Tax Deduction is made the relevant Financing Party will receive the amount
which it would receive if such a deduction in the form of the Tax Deduction is not required. However, the Liable Party shall increase amounts to be paid to the Financing Parties by the Additional Tax Payment amount if any Financing Party ceased to
be an Eligible Creditor as of the date of the corresponding payment for any reason not connected with legislation amendments. 

  

	 	(c)	 The Liable Party shall, within thirty (30) days from date when the Tax Deduction was made, provide the
Credit Manager an evidence acceptable for the Financing Party of the fact that the Tax Deduction amount withheld was transferred by the Liable Party to the state budget as required by the applicable law with further submission of such an evidence to
the corresponding Financing Party. 

  

	13.2	 Reimbursement for Tax payments 

 

	 	(a)	 The Liable Party shall, within three (3) business days from the date when the Credit Manager submits a
relevant request, pay to the Financing Party which is not a Russian legal entity an amount equivalent to the Tax amount paid by the Financing Party or the Tax amount to be paid according to this Financing Party in connection with any Financial
Document. 

  

	 	(b)	 Provision specified in Paragraph (a) above are not applicable: 

 

	 	(i)	 to Taxes paid by the Financing Party: 

 

	 	(A)	 Pursuant to the Russian Federation legislation, or 

 

	 	(B)	 In accordance with the laws applicable in the jurisdiction where this Financing Party has a lending division
connected with the amounts received or due in such a jurisdiction 

  
 61 

	 	 
If such a Tax is collected or assessed based on the net income received or due to this Financing Party, or 

 

	 	(ii)	 To the extent that expenses connected with Tax payments are compensated by increasing the payment amount as
specified in Article 13.1 (Reimbursement for a Tax Deduction). 

  

	 	(c)	 The Financing Party which submits or intends to submit a request in accordance with Paragraph (a) above
shall immediately inform the Credit Manager on the event which became or will become a ground for such a request, and then the Credit Manager shall inform the Borrower accordingly. 

 

	13.3	 Tax Indemnity 

When the Liable Party makes the Additional Tax Payment, and the relevant Financing Party establishes that: 

 

	 	(a)	 the additional payment including this Additional Tax Payment, this Additional Tax Payment or the Tax Deduction
which required this Additional Tax Payment, may be subject to the Tax Indemnity, and 

  

	 	(b)	 this Financing Party received this Tax Indemnity, 

then this Financing Party shall pay to this Liable Party an amount which in accordance with this Financing Party will place it (after making
such a payment) in the same position after Tax payments as if the Liable Party should not make this Additional Tax Payment. 
  

	13.4	 Fees and duties 

The Liable Party shall, within three business days after receiving a relevant request from the Financing party, reimburse this Financing Party
for the amounts of all documented expenses caused by stamp, registration fees and any other equivalent Taxes to be paid under any Financial Document. 
  

	13.5	 Value added tax (VAT) and other taxes 

To the extent specified by legislation, remuneration due to the Financing Parties shall be increased by VAT and other applicable taxes
collected or assessed independent of any profit taxation as regards the net income received or due to the Financing Party. 
  

	13.6	 Submission of documents confirming tax residence and a beneficial owner of income

  

	 	(a)	 The Creditor, a resident of the state which is a party to the Treaty on Avoidance of Double Taxation, shall
submit annually a copy of the document issued by the competent tax authority of the state which is a party to the Treaty on Avoidance of Double Taxation, translated into Russian, notarized and apostilled (or legalized) to prove that the relevant
Creditor is a resident of the state which is a party to the Treaty on Avoidance of Double Taxation. 

  

	 	(b)	 Each Creditor which is not the resident of the Russian Federation, shall submit annually to the Borrower a
document proving that this Creditor is a beneficial owner of interest income under this Agreement. In this case (i) each Initial Creditor which is not the resident of the Russian Federation shall submit the specified document to the Borrower
till the first Drawdown Date, and (ii) each New Creditor (as defined in Paragraph) which is not the resident of the Russian Federation shall submit the specified document to the Borrower till the first Interest Payment Date on which any payment
shall be made in favour of this New Creditor. 

	 	

  
 62 

	13.7	 FATCA information 

 

	 	(a)	 Taking into account Paragraph (c) below, each Party shall, within ten (10) business days from the
date of receiving a relevant reasonable request from the other Party: 

  

	 	(i)	 provide this other Party with a confirmation that it: 

 

	 	(A)	 Is the FATCA Exempt Party; or 

 

	 	(B)	 Is not the FATCA Exempt Party; 

 

	 	(ii)	 provide this other Party with forms, documents and other data on its FATCA status that may be reasonable
requested by this other Party so that this other Party comply with FATCA requirements; 

  

	 	(iii)	 provide this other Party with all forms, documents and other data on its FATCA status that may be reasonable
requested by this other Party so that this other Party comply with provisions of any other laws and regulations or data exchange mode. 

  

	 	(b)	 If in accordance with Paragraph (a)(i) above any of the Parties provides the other Party with a confirmation
that it is the FATCA Exempt Party, and further it becomes aware that it is not or ceased to be such a party, then this Party shall, within a reasonable time, inform this other Party thereof. 

 

	 	(c)	 Provisions specified in Paragraph (a) above shall not oblige any of the Financing Parties, and provisions
specified in Paragraph (a)(iii) above, respectively, shall not oblige any other Party to commit actions that, in their reasonable opinion, will be or may be treated as violating: 

 

	 	(i)	 any law or regulation; 

 

	 	(ii)	 any fiduciary obligation; or 

 

	 	(iii)	 any confidentiality obligations. 

 

	 	(d)	 If any of the Parties is not able to confirm that it is the FATCA Exempt Party or fails to provide forms,
documents and other data requested as per Paragraphs (a)(i) or (a)(ii) above (to avoid varying interpretations, including cases when Paragraph(c) above is applied), then for the purposes of the Financial Documents (and payments made under them) this
Party shall not be considered the FATCA Exempt Party until the relevant Party provides necessary confirmations, forms, documents and other data. 

  

	 	(e)	 If any Liable Party is the Liable Party-US Taxpayer or the Credit
Manager reasonable believes that its obligations under FATCA or any other applicable legislation require so, each of the Creditors shall, within ten (10) business days from: 

 

	 	(i)	 the date of this Agreement - if any Liable Party is the Liable Party-US
Taxpayer, and the relevant Creditor is the Existing Creditor; 

  

	 	(ii)	 the corresponding date of transfer - if any Liable Party is the Liable
Party-US Taxpayer as of this date of transfer, and the relevant Creditor is the New Creditor; 

  

	 	(iii)	 the date of accession of the new Liable Party-US Taxpayer as a Liable
Party; or 

  

	 	(iv)	 the date of receiving a request from the Credit Manager - if any Liable Party is not the Liable Party-US Taxpayer, 

  
 63 

	 	 
provide the Credit Manager with: 

  

	 	(A)	 certificates of deductions according to Form W-8, Form W-9 or other relevant form, or 

  

	 	(B)	 any statements on deductions or other documents, approvals or rejections that may be reasonable requested by
the Credit Manager to confirm or identify the status of this Creditor within FATCA or FATCA-related laws or regulations. 

  

	 	(f)	 The Credit Manager shall provide the relevant Liable Party with all certificates of deductions, statements on
deductions, documents, approvals and rejections received by the Credit Manager from the Creditors in accordance with Paragraph (e) above. 

  

	 	(g)	 If the data containing in any certificate of deductions, statement on deductions, document, approval or
rejection provided to the Credit Manager by any Creditor in accordance with Paragraph (e) above is or become inaccurate or incomplete in a significant respect, this Creditor shall immediately update the relevant document and provide this
updated certificate of deductions, statement on deductions, document, approval or rejection to the Credit Manager unless these actions are illegal for this Creditor (if so, the Creditor shall immediately inform the Credit Manager thereof). The
Credit Manager shall immediately provide any such updated certificate of deductions, statement on deductions, document, approval or rejection to the relevant Liable Party. 

 

	 	(h)	 The Credit Manager may rely on any certificates of deductions, statements on deductions, documents, approvals
or rejections received by the Credit Manager from the Creditors in accordance with Paragraphs (e) or (g) above without the need to further verify the data contained in them. The Credit Manager shall not be liable for any actions it commits in
accordance or in connection with Paragraphs (e), (f) or (g) above. 

  

	 	(i)	 If any Creditor is not able to provide any certificate of deductions, statement on deductions, document,
approval, rejection or data in accordance with Paragraph (e) above, or if any certificate of deductions, statement on deductions, document, approval, rejection or data provided by any Creditor to the Credit Manager are or become inaccurate or
incomplete to a significant extent, then this Creditor shall reimburse the Credit Manager within three (3) business days after a relevant request is submitted for any costs, damages, Taxes or obligations (including but not limited to in
connection with negligence or any other liability category) encountered by the Credit Manager or incurred or paid by the Credit Manager (including any interest and fines connected with them) when acting as a Credit Manager under Financial Documents
as a result of failure to provide these documents or their inaccuracy or incompleteness. 

  

	13.8	 FATCA Deduction and recalculation of amounts made by the Liable Party 

 

	 	(a)	 When the Liable Party is required to make the FATCA Deduction for reasons relating to such Liable Party, such
Liable Party shall make such FATCA Deduction and make any necessary payment in respect of such FATCA Deduction in the minimum amount and within the time frame specified by the FATCA. 

 

	 	(b)	 When the Liable Party is required to make the FATCA Deduction, the amount of payment owed by this Liable Party
shall be increased by an amount to obtain (after the FATCA Deduction is made) the payment amount which would be made if there is no FATCA Deduction payment requirement. 

 

	 	(c)	 Immediately after becoming aware of the need to make the FATCA Deduction by the Liable Party (or of changes in
the rate or base of this FATCA Deduction), the Borrower shall inform 

  
 64 

	 	
the Credit Manager accordingly. Similarly, the Financing Party shall inform the Credit Manager as soon as it becomes aware of the specified circumstances related to any payment due to this
Financing Party. After receiving this notice from the Financing Party, the Credit Manager shall inform the Borrower and the relevant Liable Party thereof. 

  

	 	(d)	 Within thirty (30) days after making the FATCA Deduction or any payment required in connection with this
FATCA Deduction, the Liable Party making this FATCA Deduction or payment shall provide the Credit Manager (for the Financing Party entitled to receive the payment) with the evidences acceptable for this Financing Party (acting on reasonable grounds)
proving that the FATCA Deduction was made or (as applicable) that the relevant payment was made in favour of the appropriate government or tax authority. 

  

	13.9	 FATCA Deduction made by the Financing Party 

 

	 	(a)	 Each of the Financing Party shall have the right to make FATCA Deductions that it is required to make in
accordance with FATCA as well as make payments in connection with these FATCA Deductions, and neither of the Financing Party is obliged to increase the amount of payment in connection with which this FATCA Deduction is made for it or otherwise
reimburse the receiver for the FATCA Deduction amount. The Financing Party which became aware of the need to make the FATCA Deduction in connection with the payment made in favour of the other Party (or of changes in the rate or base of this FATCA
Deduction) shall inform this Party and the Credit Manager. 

  

	 	(b)	 If the Credit Manager shall make the FATCA Deduction in connection with the payment made in favour of the
Financing Party in accordance with Article 24.2 (Distribution of money received by the ) related to the payment made by the Liable Party, the payment amount due from this Liable Party shall be increased by an amount which will allow the
Credit Manager (after the Credit Manager makes this FATCA Deduction) retain the amount equal to the amount of payment which would be made by the Credit Manager if there is no need to make the FATCA Deduction. 

 

	 	(c)	 Immediately after becoming aware of the need to make the FATCA Deduction in connection with the payment made in
favour of the Financing Party in accordance with Article 24.2 (Distribution of money received by the ) which relates to the payment made by the Liable Party (or of changes in the rate or base of this FATCA Deduction), the Credit Manager shall
inform the Borrower, the relevant Liable Party and the relevant Financing Party accordingly. 

  

	 	(d)	 The Borrower shall (within three (3) business days after receiving the Credit Manager’s request) pay
to the Financing Party the amount equal to the documented obligations or expenses that, as defined by this Financing Party, were incurred by or charged to this Financing Party as a result of the other Financing Party making the FATCA Deduction in
relation to the payment due to it under any Financial Document for the reasons related to the Liable Party. This Paragraph is not applicable in cases when any damages, obligations or expenses are compensated by increasing the amount of payment made
in accordance with Paragraph (a) above. 

  

	 	(e)	 The Financing Party which submits or intends to submit a request in accordance with Paragraph (d) above
shall immediately inform the Credit Manager on the FATCA Deduction which became or will become a ground for such a request, and then the Credit Manager shall inform the Borrower accordingly. 

 

	 	(f)	 Any of the Financing Parties receiving any payment from any Liable Party in accordance with this Article shall
notify the Credit Manager thereof. 

  
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	13.10	 Tax Credit and FATCA 

When the Liable Party makes the FATCA Payment, and the relevant Financing Party establishes that: 

 

	 	(a)	 The increased payment amount comprising this FATCA Payment, this FATCA Payment or FATCA Deduction resulting in
this FATCA Payment may be subject to a Tax Credit, and 

  

	 	(b)	 This Financing Party received, used and withheld this Tax Credit, 

then this Financing Party shall pay to this Liable Party an amount which, when paid, in accordance with this Financing Party will place it in
the same position after Tax payments as if the Liable Party should not make this FATCA Payment. 
  

	14.	 ADDITIONAL EXPENSES 

 

	14.1	 Additional Expenses 

 

	 	(a)	 With regard to Article 14.3 (Exceptions), the Borrower shall, within ten (10) days after the Credit
Manager submits a relevant request, pay to the relevant Financing party an amount of Additional Expenses incurred by this Financing Party as a result of any enforced or amended law (or its interpretation or application practice) after the date of
this Agreement or charging the Financing Parties by the Central Bank of the Russian Federation or a competent authority of the country of registration of any Creditor with duty to apply or follow regulations established in Basel III or CRD IV
Capital Requirements Directive. 

  

	 	(b)	 In this Article “Additional Expenses” mean: 

 

	 	(i)	 additional expenses or losses incurred by the Financing Party in connection with reductions of any amounts
received or due, or 

  

	 	(ii)	 any additional or increased expenses or losses, or 

 

	 	(iii)	 expenses or losses associated with the reduction of any amount due from the Borrower under any Financial
Document, 

 arising at any of the Financing Party in connection with the fact that it is a Party to this Agreement. 

 

	 	(c)	 To avoid any doubts, the Additional Expenses provided by this Article shall be paid by the Borrower as a
drawdown charge in addition to interest. 

  

	14.2	 Request for payment of the Additional Expenses 

The Financing Party which submits a request in accordance with Article 14 (Additional Expenses) shall immediately inform the Credit
Manager on circumstances which became a ground for such a request, and provide the Credit Manager a justified calculation of the Additional Expenses. After that the Credit Manager , within one business day, inform the Borrower accordingly and
transfer to it the calculation received from the Financing Party. 
  

	14.3	 Exceptions 

The provisions of Article 14 (Additional Expenses) are not applicable if the Additional Expenses are: 

 

	 	(a)	 compensated to the Financing Party in accordance with any other Article of the Agreement or would be
compensated if there are no exceptions from this Article, 

  
 66 

	 	(b)	 caused by the Financing Party deliberately disregarding the legislation, or 

 

	 	(c)	 caused by application of or compliance with regulations established in Basel II (as in force on the date of
this Agreement) or in regulatory acts of the Central Bank of the Russian Federation or in any other law serving to implement the provisions of Basel II, except for changes arising from Basel III or CRD IV Capital Requirements Directive.

  

	15.	 REIMBURSEMENT 

 

	15.1	 Reimbursement for currency expenses  

If any amount (hereinafter the Amount) due to the Financing Party from any Liable Party under the Financial Documents or based on a
court, commercial or arbitration court judgment shall be converted from the currency in which this amount was paid (hereinafter - the First Currency) to another currency (hereinafter - the Second Currency) or shall be calculated in the
Second Currency in order to: 
  

	 	(a)	 file any request in relation to this Liable Party, or 

 

	 	(b)	 enforcement of any court or commercial court judgment within any court, commercial or arbitration court
proceeding, 

 then this Liable Party shall, within ten (10) business days upon receipt of a relevant request,
reimburse each Financing Party which shall receive this Amount for an amount of documented expenses arising out of such conversion including the difference between (i) exchange rate used to convert the specified Amount from the First Currency
to the Second Currency, and (ii) exchange rate available to this party at the time when it receives this Amount. 
  

	15.2	 Reimbursement for other expenses 

The Borrower shall, within ten (10) days upon receipt of a relevant request, reimburse each Financing Party for an amount of documented
expenses arising at the relevant Financing Party out of: 
  

	 	(a)	 Event of Default, or 

 

	 	(b)	 Borrower’s inability to make anticipated repayment of the Outstanding Credit or its part regardless of an
anticipated repayment notice submitted to the Credit Manager. 

  

	15.3	 Reimbursement to the Credit Manager for expenses 

Pursuant to the provisions specified in Paragraph 12.3(c) of Article 12.3 (Remuneration of the Credit Manager and the Pledge Manager),
the Borrower shall reimburse the Credit Manager for an amount of all documented expenses incurred by the Credit Manager as a result of: 
  

	 	(a)	 investigation of any event which the Credit Manager is entitled to consider a Default, or

  

	 	(b)	 commitment of actions based on any notice or order of any Financing Party in accordance with this Agreement
that the Credit Manager may reasonable consider as subject to execution. 

  

	15.4	 Transaction-related expenses 

Pursuant to the provisions specified in Paragraph 12.3 (c) of Article 12.3 (Remuneration of the Credit Manager and the Pledge Manager),
the Borrower shall, within ten (10) business days after receiving a relevant request, pay to the Credit Manager and the Pledge Manager an amount of all documented expenses preliminarily agreed with the Borrower (including legal and other
professional consultants’ fees including notary fees) incurred by any of them as a result of preparing and signing this Agreement and other Financial Documents. 
  

	15.5	 Expenses on making changes 

Pursuant to the provisions specified in Paragraph 12.3 (c) of Article 12.3 (Remuneration of the Credit Manager and the Pledge Manager),
when the Liable Party initiates any changes in the Financial Documents or obtaining Creditors’ consent to any action or inaction, the Borrower shall, within ten (10) business days after receiving a relevant request, reimburse the Credit Manager
and the Pledge Manager for an amount of all documented expenses agreed with the Borrower (including legal and other professional consultants’ fees including notary and translators’ fees) incurred by any of them as a result of agreeing and
making changes in the Financial Documents and/or obtaining the relevant consent from the Creditors. 

  
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	15.6	 Enforcement expenses 

The Borrower shall, within ten (10) business days after receiving a relevant request from the Credit Manager, pay to each Financing Party
an amount of all documented expenses (including legal and other professional consultants’ fees including notary and translators’ fees) incurred by the relevant Financing Party as a result of enforcing any Financial Document or protecting
its rights under Financial Documents. 
  

	16.	 REPRESENTATIONS OF CIRCUMSTANCES 

 

	16.1	 Representations of circumstances 

 

	 	(a)	 By signing this Agreement, the Borrower declares to the Financing Parties and represents the following:

  

	 	(i)	 the Borrower is a public joint-stock company duly registered and legally acting in compliance with the Russian
legislation; 

  

	 	(ii)	 the Borrower has the necessary legal capacity to carry out its activities, conclude and perform the Financial
Documents, the Borrower’s license required to carry out its core activity was not revoked (cancelled), the license has not expired or the core activity carried out by the Borrower is not be subject to licensing; 

 

	 	(iii)	 the Borrower has the ability and undertakes to perform its obligations under the Financial Documents to which
it is a party in full and on time; 

  
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	 	(iv)	 the person that signed the Financial Documents on behalf of the Borrower has all the powers to do so, all the
formalities and procedures necessary for the conclusion of the Financial Documents to which the Borrower is a party are complied with, documents confirming approval of the Financial Documents conclusion granted by the competent corporate bodies of
the Borrower, were or, within the term specified in Schedule 2 (Conditions Subsequent) of Addendum 1, will be delivered to the Credit Manager. The Borrower is not required to obtain any other approvals or authorizations;

  

	 	(v)	 all the information and documents provided by the Borrower to the Credit Manager in connection with the
conclusion of the Financial Documents are accurate and reliable, the Borrower did not conceal any facts that, in case of being established, could adversely affect the Financing Parties decision on conclusion of the Financial Documents;

  

	 	(vi)	 the conclusion of the Financial Documents does not violate any rights and duties of the Borrower to third
parties, except for the violations about which the Financing Parties were informed in writing (with a copy to the e-mail address) by the Borrower; 

 

	 	(vii)	 the Borrower does not participate and is not involved in any way in any transaction or other obligation, with
respect to which the Borrower is in breach of its obligations or is expected to perform its payment obligations before the maturity date or any transaction participation in which may adversely affect the ability of the Borrower to perform its
obligations undertaken under the Financial Documents to which it is a party, about which the Financing Parties were not informed in writing (with a copy sent to the e-mail address) by the Borrower and except
for breaches that were reported to the Financing Parties in writing (with a copy sent to the e-mail address) by the Borrower; 

 

	 	(viii)	 it is not acting on behalf of any beneficial owner (wirtschaftlich Berechtigter in German) in terms of
Article 1 (6) of the German Anti-Money Laundering Act (Gesetz über das Aufspüren von Gewinnen aus schweren Straftaten (Geldwäschegesetz – GWG) in German); 

 

	 	(ix)	 the Borrower is not a lawful owner of the property it owns and carries out its activities in accordance with
applicable law; 

  

	 	(x)	 each Financial Document to which the Borrower is a party is an obligation that meets the applicable
legislation, effective and legally binding for it and that can be enforced in accordance with applicable law; 

  

	 	(xi)	 each Financial Document to which the Borrower is a party is prepared according to a form that allows for its
enforcement in the Russian Federation; 

  

	 	(xii)	 when the Borrower concludes or executes any Financial Documents or transactions provided by them there is no
any existing or potential Event of Default, except for the Events of Default about which the Financing Parties were informed in writing (with a copy sent to the e-mail address) by the Borrower;

  

	 	(xiii)	 the Borrower received (or, within the term specified in Schedule 2 (Conditions Subsequent) of Addendum
1, will receive) all approvals and consents that are valid and required in connection with the conclusion, execution, maintaining in force and possibility of enforcement of each Financial Documents to which it is a party and transactions provided by
them; 

  
 69 

	 	(xiv)	 any: 

  

	 	(A)	 irrevocable submission to jurisdiction specified as its competent jurisdiction under the Financial Documents;

  

	 	(B)	 consent regarding the applicable law of any Financial Document; and 

 

	 	(C)	 consent not to claim immunity the right to which may be applicable to it or its assets, 

are legal, effective and binding in accordance with the Russian legislation and legislation of other applicable jurisdictions; 

 

	 	(xv)	 no Tax Deductions from payments made by the Borrower under the Financial Documents in favour of any Creditor
are required; 

  

	 	(xvi)	 its last audited financial statement provided to the Credit Manager that is its initial finance statements as
of the date of this Agreement: 

  

	 	(A)	 Prepared in accordance with consistently applied IFRS or Russian Accounting Standards (whatever is applicable),
and 

  

	 	(B)	 Fairly reflects its financial status and results of activity (consolidated as applicable) as of the date of its
preparation; 

  

	 	(xvii)	 its economic activity and financial status (or economic activity and consolidated financial status of Mechel
Group) undergone no any substantial negative changes (provided that the Elga Sale shall not be taken into account for the purpose of determination of whether any such change has occurred) starting from the date as of which its financial statement
was prepared as specified in Paragraph (xvi) above; 

  

	 	(xviii)	 any unsecured and unsubordinated claims asserted by any Financing Party against the Borrower under the
Financial Documents have at least the equal status as compared with claims on its unsecured and insubordinate obligations towards all its other creditors (pari passu) except for creditors having their claim priority mandatorily provided by
applicable Russian legal provisions; 

  

	 	(xix)	 it paid all the Taxes applicable to it or its assets duly and on time without any substantial fines imposed
(except for fines about which the Financing Parties were informed in writing (with a copy sent to the e-mail address) by the Borrower) save for cases when: 

 

	 	(A)	 any payment is contested in good faith; 

 

	 	(B)	 it established and maintains adequate reserves to pay these Taxes; and 

 

	 	(C)	 any payment may be legally delayed; 

 

	 	(xx)	 it and each other participant of Mechel Group carried out their economic activity and carry it now in
compliance with all anti-corruption, anti-bribery and anti-money laundering laws applicable to the Borrower and other Mechel Group participants, introduced and maintain principles aimed at promotion of compliance and compliance with such laws;

  

	 	(xxi)	 neither the Borrower nor any other Mechel Group participant and, to the best Borrower’s knowledge, no
directors, officials, affiliated persons or other persons acting on behalf of the Borrower or any other Mechel Group participant are aware of 

  
 70 

	 	
any actions or committed directly or indirectly any actions that would lead to violation by these persons of the US Foreign Corrupt Practices Act (1977) (as amended), UK Bribery Act (2010) (as
amended) and rules and regulations adopted in compliance with them or any other provisions of anti-corruption, anti-bribery and anti-money laundering laws; 

  

	 	(xxii)	 neither the Borrower nor any other Liable Party and no directors, officials committed or will commit any
actions on offering, transferring or paying money, property, gifts or any other valuable items directly or indirectly to any person having aware of the fact that all or some of these money or values will be offered to anybody in order to have an
improper effect on decisions made or actions committed by any officials, receive or keep business opportunities or otherwise receive any improper advantage; 

  

	 	(xxiii)	 as regards Mechel Group participants: 

 

	 	(A)	 no corporate, procedural or other actions or measures were taken by a member of the Mechel Group or any of
their respective corporate bodies aimed at bankruptcy of this Mechel Group participant; 

  

	 	(B)	 no corporate, procedural or other actions or measures were taken by a third party aimed at bankruptcy of this
Mechel Group participant; or 

  

	 	(C)	 no property was attached to satisfy claims filed by the Creditors, and 

to the best Borrower’s knowledge, there are no such risks, except for the claims about which the Financing Parties were informed in
writing (with a copy to the e-mail address) by the Borrower prior to the date of Addendum 1; 
  

	 	(xxiv)	 encumbrance provided by each of the Security Agreement is an encumbrance of a proper priority and proper type
covering property specified in the relevant Security Agreement, and the existing property is not subject to any higher-priority or equal Encumbrance, save for cases of Encumbrance in favour of any of the Creditors specified in the relevant Security
Agreement, Encumbrance in favour of such creditors having their claim priority mandatorily provided by the applicable Russian legislation, and/or Encumbrances reported to the Financing Parties in writing (with a copy sent to the email address) by
the Borrower prior to the date of Addendum 1. 

  

	 	(b)	 Representations in this Article 16 (Representations OF circumstances), except for the representations in
paragraphs (a)(vii) and (a)(xxiii)(B) above, shall be considered given by the Borrower repeatedly on the date of each Disbursement Request, on each Drawdown Date and on the first day of each Interest Period. In case of repeated provision, they shall
cover circumstances existing at the time of its repeated provision. 

  

	17.	 OBLIGATIONS TO PROVIDE INFORMATION 

 

	17.1	 The Borrower shall notify the Credit Manager of any fact listed below that occurred during the term of the
Suretyship Agreement within ten (10) business days from the date of its occurrence: 

  

	 	(a)	 Change in the physical or postal address of any of the Liable Parties or payment details of the Borrower;

  

	 	(b)	 The shareholder composition of any of the Liable Parties changes by over twenty (20) per cent (notice to
be sent on the date when the Borrower became aware or should have become aware of such change); 

  
 71 

	 	(c)	 The percentage of ordinary shares in the authorized capital of Mechel PJSC held by I. V. Zyuzin and his family
members, directly or through third parties, drops below fifty point one percent (50.1%) of the total amount of ordinary shares; 

  

	 	(d)	 Changes in the legal status or management bodies structure and/or composition of any of the Liable Parties;

  

	 	(e)	 Commencement of liquidation or reorganization of any of the Liable Parties (since the adoption by the
authorized management body of such decision) or submission of a bankruptcy petition against the any of the Liable Parties to the court; 

  

	 	(f)	 The Borrower or any Liable Party does not act or ceases to act at its sole discretion (auf eigene
Veranlassung in German) or if such person is under control of or owned by another person within the meaning of the German Anti-Money Laundering Act (GWG in German), then the Borrower shall specify the name (names) and address(es) of the
relevant beneficial owner(s) in writing. 

  

	17.2	 The Borrower shall provide and ensure that the Sureties provide to the Credit Manager on a quarterly basis, not
later than the 15th of May, 15th of August and 15th of November, copies of the following reporting documents for the current year as of the 1st of April, 1st of July and 1st of October, respectively: 

 

	 	(a)	 Forms of accounting statements, including: 

 

	 	(i)	 Balance sheet (form 0710001 in accordance with the National Classifier of Administrative Documentation);

  

	 	(ii)	 Financial performance report (form 0710002 in accordance with the National Classifier of Administrative
Documentation); 

  

	 	(b)	 Data and breakdown of the balance sheet including: 

 

	 	(i)	 Accounts receivable and accounts payable of the Borrower and the relevant Surety broken down by due and overdue
debt (including maturity dates of overdue debts); 

  

	 	(ii)	 Information on the book value of illiquid inventory (not disposed of for over three hundred and sixty
(360) days if it is not connected with peculiarities of the production cycle); 

  

	 	(iii)	 Loans and credits; 

  

	 	(iv)	 Information on the security received and granted (by type); 

 

	 	(v)	 Information on the suretyships provided by the Borrower / Surety / guarantees granted on the instructions of
the Borrower / Surety / opened letters of credit / financing limits relating to assignment of receivables and factoring with respect to debtors in accordance with agreements concluded by the Borrower / Surety with financing factors;

  

	 	(vi)	 Information on overdue payroll obligations; 

 

	 	(vii)	 Information on overdue debts to budget and off-budget funds (including
the debt amount, if any, and reasons for the debt); 

  
 72 

	 	(viii)	 Information on the queue of overdue orders with respect to bank accounts of the Borrower / Surety (including
the amount of the overdue orders, if any); 

  

	 	(ix)	 Information about turnover on current accounts opened with other credit institutions; 

 

	 	(x)	 Information on the value of the Borrower / Surety net assets; 

 

	 	(xi)	 Reports of the Borrower on the amount of depreciation expenses, interest and commissions paid and amount of
lease payments made over the past four reporting quarters; 

  

	 	(xii)	 Information on negative events and trends in activities of the Borrower / Surety from April 1, 2018 to the
reporting date; 

  

	 	(xiii)	 Breakdown of item 1170 “Financial Investments” of the balance sheet (highlighting the amount of
investments in authorized capitals of operating Group companies); 

  

	 	(xiv)	 Breakdown of assets and liabilities (highlighting the items with a maturity date within less than one
(1) year and more than one (1) year); 

  

	 	(xv)	 Information on the income and expenses not related to the core activity of the Borrower / Surety or non-permanent income and expenses; 

  

	 	(xvi)	 Information on statutory (stipulated by legislation or regulations) restrictions with regard to payment of
dividends to the Borrower / Surety by operating companies. 

  

	 	(c)	 A letter of the Borrower informing about absence/presence of overdue indebtedness on the principal, interest,
commissions for the reporting quarter. 

  

	17.3	 The Borrower shall also provide / ensure that the Guarantor provides to the Credit Manager on a quarterly
basis, not later than the 10th of May, 10th of August and 10th of November, copies of the reporting forms for the current year as of the 1st of April, 1st of July and 1st of October, respectively. 

 

	17.4	 The Borrower shall provide / ensure that the Sureties provide to the Credit Manager on an annual basis:

  

	 	(a)	 Not later than the 15th of April of the current year, copies of the following balance sheet documents for the
last financial year: 

  

	 	(i)	 Forms of annual accounting statements, including: 

 

	 	(A)	 Balance sheet (form 0710001 in accordance with the National Classifier of Administrative Documentation);

  

	 	(B)	 Financial performance report (form 0710002 in accordance with the National Classifier of Administrative
Documentation); 

  

	 	(C)	 Statement of changes in equity (form 0710003 in accordance with the National Classifier of Administrative
Documentation); 

  

	 	(D)	 Cash flow statement (form 0710004 in accordance with the National Classifier of Administrative Documentation);

  

	 	(ii)	 Explanatory notes to the annual accounting statements; 

 

	 	(iii)	 Data and breakdown of the annual balance sheet including the documents specified in Paragraph 17.2(b) of
Article 17.2 (Obligations to provide information) hereof; 

  
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	 	(iv)	 Letter of the Borrower / Surety informing about overdue debts on principal, interest, commissions for the last
quarter of the reporting year. 

  

	 	(b)	 Not later than the 10th of February of the current year following the reporting year, information on financial
and business activities of the Borrower / Sureties for the period from the 1st of October to the 31st of December of the reporting year in accordance with the form given in Appendix 8 (Data on the status of the financial and business
activity). 

  

	 	(c)	 The Borrower shall provide / ensure that the Guarantor provides to the Creditor on an annual basis copies of
accounting, management and other statement forms in the following periods: 

  

	 	(i)	 Each six (6) months not later than the 31st of March and 30th of September copies of statement forms for
the current year as of the 31st of December and 30th of July, respectively, signed by the company director; 

  

	 	(ii)	 Annually not later than the 1st of August of the year following the accounting year, copies of audited
accounting and other statement forms for the last accounting year prepared in accordance with national and/or international standards. 

  

	17.5	 The Borrower shall provide / ensure providing to the Credit Manager, on an annual basis by the 30th of July of
the current year, a copy of the auditors’ report confirming the accuracy of the accounting statements of the Borrower / Sureties prepared in accordance with RAS for the last reporting year (if the statements of the said companies are subject to
mandatory audit in accordance with the legislation or other applicable laws). 

  

	17.6	 The balance sheet documents shall be prepared and signed in accordance with requirements of the legislation.
The annual statements shall bear a mark confirming its receipt by the tax authority at the location of state registration of the Borrower. The copies of the balance sheet documents provided shall be certified by the head or other authorized person
(and accompanied by the documents confirming the powers of such person to certify copies of documents on behalf of the Borrower), bound and numbered and shall bear the official seal of the Borrower. If the annual reports are submitted to tax
authorities in electronic form via telecommunication channels, the Credit Manager shall receive copies of records of the accounting statements acceptance check and the receipt confirming acceptance of the statements bound together with the
accounting documents and certified by an authorized person of the Borrower (indicating that the statements were submitted to tax authorities in electronic form via telecommunication channels). 

The documents containing secret information shall be provided in accordance with the procedure established for this type of information. The
date of submission by the Borrower of the reporting documents and other documents required by provisions of this Agreement shall be the date of their actual receipt by the Credit Manager. 

 

	17.7	 The Borrower shall: 

  

	 	(a)	 Provide (ensure providing) to the Credit Manager, in case of changes in the constituent documents of the Liable
Parties, notarized copies of the documents confirming the introduction of such changes within thirty (30) calendar days from the date of state registration of the changes (and as regards the Guarantor’s documents, the specified documents
shall be provided to the Credit Manager with an apostille and notarized translation into Russian - within fifty (50) calendar days from the date when changes are made); 

 

	 	(b)	 Provide / ensure providing to the Credit Manager letters signed by an authorized person of the Borrower /
Sureties and Surety 10 (if applicable) informing about arrears and debts on default charges and fines payable to the federal budget, budgets of constituent entities of the Russian Federation, local budgets and state
off-budget funds as of the 1st of April, 1st of July, 1st of 

  
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October and 1st of January of the following year (including the amount and type of debts, if any). The letters shall be made available to the Credit Manager not later than the deadline for
submission to the Credit Manager of the quarterly and annual accounting statements in accordance with Articles 17.2 and 17.4 (Obligations to provide information). The annual accounting statements shall be accompanied by the above information
as of the first day of the month in which the annual accounting statements were submitted to the Credit Manager; 

  

	 	(c)	 Within the time specified in Paragraph 17.7(d) of Article 17.7 (Obligations to provide information) below
inform the Credit Manager of meeting the financial performance targets specified in Paragraph 18.1(h) of Article 18.1 (General Obligations and obligations to Comply with Financial Indicators) hereof by providing a Certificate of Conformity to
the Credit Manager. 

 In this case the Certificate of Conformity provided on the date of providing the annual audited
consolidated financial statement of Mechel Group according to IFRS and on the date of providing the semi-annual consolidated financial statement of Mechel Group according to IFRS shall be certified by the Borrower auditor’s authorized person
(or the person providing the Financial Consultant Report). The Certificate of Conformity shall contain values that meet financial performance targets on each date of testing; 
  

	 	(d)	 Provide / ensure providing to the Credit Manager: 

 

	 	(i)	 The annual consolidated audited financial statement of Mechel Group according to IFRS within one hundred and
eighty (180) calendar days from the expiration date of the accounting period (the statement shall include data breakdown by Mechel Group divisions); 

  

	 	(ii)	 The semi-annual consolidated unaudited reviewed financial statement of Mechel Group according to IFRS within
one hundred and thirty-five (135) calendar days from the expiration date of the accounting period (the statement shall include data breakdown by Mechel Group divisions); and 

 

	 	(iii)	 The unaudited condensed consolidated statement of Mechel Group according to IFRS within ninety
(90) calendar days from the expiration date of the first and third quarter of each year (as regards the first and the third quarter of each year); 

  

	 	(e)	 On a monthly basis, not later than the end of the month following the reporting month, provide or ensure
provision to the Credit Manager by any Liable Party of a report on credits and loans of Mechel Group companies as of the first (1st) day of the reporting month and the first reporting month is July 2018; 

 

	 	(f)	 Make all reasonable efforts to ensure that the Liable Parties provide to the Credit Manager the information
about the beneficial owner in accordance with requirements of the applicable anti-money laundering legislation within a reasonable time after receipt of a written request from the Credit Manager. In addition, the Borrower shall make all reasonable
efforts to ensure that the Liable Parties provide to the Credit Manager, after the date of this Agreement and within a reasonable time after receipt of a written request from the Credit Manager, the information about all known changes in the
circumstances relating to the Surety representing interests of the beneficial owner within the meaning of the German Anti-Money Laundering Act (GWG in German) in relation to this financing within the reasonable time after receipt of a written
request from the Credit Manager. The Borrower shall make all reasonable efforts to ensure that the Liable Parties provide to the Credit Manager, within a reasonable time after receipt of a written request from the Credit Manager, the information
required for: (i) identification of the beneficial owner in accordance with requirements of any applicable anti-money laundering legislation; or (ii) verification of any information provided in this regard. The Borrower shall

  
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be deemed to have fulfilled the condition of making all reasonable efforts, including in the case of sending to the Credit Manager of the information and copies of the documents on the measures
taken to identify the beneficial owner. 

  

	 	(g)	 On or before 30 September 2020, deliver to the Credit Manager the Technical Audit Report, in form and
substance satisfactory to the Credit Manager; 

  

	 	(h)	 on a quarterly basis, on or before the dates specified in Articles 17.2 and 17.4 for the delivery of financial
statements, deliver to the Credit Manager a technical adviser’s report on actual operating results of the Mechel Group (including its performance of the mining plan), investment costs and expenses (including the performance of the investment
programme as specified in the Technical Audit Report). For the avoidance of doubt, the first technical adviser’s quarterly report shall be delivered in relation to the quarter next following the quarter during which the Technical Audit Report
under clause 17.7(g) above has been delivered; 

  

	 	(i)	 immediately notify or procure that any of the Liable Parties notifies the Credit Manager by in writing of any
material fact (event, action) with regard to the Liable Parties, which, in the opinion of the Borrower, can significantly worsen their financial condition or property status or substantially affect their solvency, as well as of the measures taken to
deal with the consequences of the said events (actions); 

  

	 	(j)	 make available, at the request of the Credit Manager and not later than within ten (10) business days from
the date of the request, the information which, in the reasonable opinion of the Credit Manager, is essential to assess the financial position of the Liable Parties; 

 

	 	(k)	 make available or ensure making available to the Credit Manager by any Liable Parties information about any
litigation involving an amount exceeding five hundred million rubles (RUB500,000,000.00) (or equivalent in any other currency at the exchange rate of the Bank of Russia on the date of filing a statement of claim concerning the litigation), for which
the respondent is any Mechel Group company, within ten (10) business days from the date of acceptance of the claim in court; 

  

	 	(l)	 not later than within ninety (90) calendar days from the ending date of the quarter, provide/ensure
provision of a report for such reporting quarter on performance and financial results of Mechel Group as well as on performance of the obligations specified in clause 18.1(i) of Article 18.1 (General Obligations and obligations to Comply with
Financial Indicators) of this Agreement, whose form, structure and content are acceptable to the Creditors, by one of the following companies: KPMG International, Deloitte Touche Tohmatsu Limited or PwC (including their Russian subsidiaries or
affiliates) (hereinafter referred to as the Financial Consultant Report). 

 The Financial Consultant Report does
not have to be provided if all the following conditions are met simultaneously: 
  

	 	(i)	 the Net Debt/EBITDA ratio is less than 3.00x for two (2) consecutive test dates; the test is carried out
on the basis of the consolidated financial statements of Mechel Group prepared in accordance with IFRS; 

  

	 	(ii)	 there is no outstanding Event of Default or any defaults or events of default giving rise to the right to
accelerate under any VTB Group Contract; 

  

	 	(iii)	 the aggregate amount of repayments made by the Borrower since the Restructuring Date (inclusive) in relation to
the Outstanding Credit under the terms hereof is equal to or exceeds sixty five billion (65,000,000,000) Rubles (in Rubles or Euro at the Ruble/Euro exchange rate of the Bank of Russian as at the date of execution of Addendum 1);

  
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	 	(m)	 not later than fourteenth (14th) Business Day of each first month of a quarter starting from Q2 2018 (the
second quarter of 2018), provide/ensure provision of: 

  

	 	(i)	 a report on the Revenue from sales of Mechel Group companies for the reporting (past) quarter (including, as of
the Restructuring Date, information on the amount of the Mechel Group’s Sales Revenue) bearing a corporate seal of Mechel PJSC and signed by the authorized persons of Mechel PJSC; 

 

	 	(ii)	 information, compiled in a form of a reference sheet, on the loan portfolio of Mechel Group as of the first day
of the first month of the reporting (past) quarter in all banks as of the first day of the first month of the past quarter bearing a corporate seal of Mechel PJSC and signed by the authorized persons of Mechel PJSC; 

 

	17.8	 “Client Data” verification 

If as a result of: 
  

	 	(i)	 Any changes in any applicable legislation after the date of this Agreement; 

 

	 	(ii)	 Changes in the legal form of the Liable Party or composition of its shareholders or participants (who owns over
twenty five (25) per cent of voting shares or participatory interest after the date of this Agreement, respectively; or 

  

	 	(iii)	 Assignment or transfer by any Creditor of its rights and obligations under this Agreement in full or in part to
the party which has not been a Creditor until this assignment or transfer, or Pledge Manager or any other Financing Party replacement under this Agreement or other changes of the Parties to the Agreement, 

the Credit Manager, Creditor, Pledge Manager, New Credit Manager, New Pledge Manager or any other Financing Party (or in the case of paragraph
(iii) above, possible new party), based on the legislation applicable to then, are required to perform “Client Data” verification or similar client verification procedures, if the necessary information was not previously provided by
the relevant Liable Party, each Liable Party shall provide to the Credit Manager (acting on its own behalf, on behalf of the Financing Party or on behalf of a possible new party) the information and documents that make it possible for the Credit
Manager, the Financing Party or a possible new party to meet the “Client Data” verification requirements applicable to them. 

Each Financing Party shall provide to the Credit Manager information and documents required for the Credit Manager to meet the “Client
Data” verification requirements applicable to it. 
  

	18.	 GENERAL OBLIGATIONS AND OBLIGATIONS TO COMPLY WITH FINANCIAL INDICATORS 

 

	18.1	 The Borrower shall be obliged: 

 

	 	(a)	 To use the granted loan strictly for the intended purpose in accordance with this Agreement;

  

	 	(b)	 to enable the Credit Manager to control the intended use of the Loan, including unhampered access of the Credit
Manager to business accounting reporting, contracts and other documents of the Borrower related to Loan drawdown and use; 

  
 77 

	 	(c)	 to repay the Outstanding Credit in full in terms established by the Agreement, including, early repayment, if
the Credit Manager sends the written notice to that effect, should any Event of Default occur, in terms established by Article 20.2 (Acceleration) hereof; 

 

	 	(d)	 in full amount and in due time, to pay interest, fees and penalties hereunder to the Credit Manager, documented
expenses of the Financing Parties incurred by it while performing this Agreement, including those incurred in case of Events of Default; 

  

	 	(e)	 when entering into bank account agreement, to provide the Credit Manager with consent (acceptance) of direct
debit of funds due to it hereunder from the accounts that will be opened to it n the Bank throughout this Agreement pursuant to the agreements concluded to that effect; 

 

	 	(f)	 to timely provide the Credit Manager with business accounting reporting and other reporting, whose terms of
submission and set are defined in Articles 17.2 - 17.4 (Obligations to provide information) hereof; 

  

	 	(g)	 if the Creditor puts forward a claim to the Liable Party, and until all amounts due and payable by such Liable
Party under all agreements concluded with any of the Creditors are paid against the respective Creditor’s claim in full, or until the Credit Manager orders otherwise in writing, the Borrower shall not: 

 

	 	(i)	 receive (claim), from such Liable Party, any payments and / or any reimbursement (inter alia, earlier) a) in
connection with and / or arising out of this Agreement and / or Valid Loans and / or b) in connection with and / or arising out of other agreements concluded pursuant to the above contracts, and / or c) under the law (including, by way of recourse),
and make any claims or exercise any rights against or at the expense of any collateral securing obligations of such Liable Party to the Borrower; 

  

	 	(ii)	 assign, modify, novate the claims to any such Liable Party; 

 

	 	(iii)	 claim any payment or reimbursement from such Liable Party under any obligations of such Liable Party pursuant
to all agreement concluded by such Liable Party with the Creditor and / or its affiliates; 

  

	 	(iv)	 initial legal or other proceedings for the purpose of enforcing such Liable Party to make payment or fulfill
any liability, including the liability to repay the loan, pay interest and penalties or recovery of damages such Liable Party is obliged to make or fulfill; 

  

	 	(v)	 convert debt of such Liable Party to equity / shares / securities / other interest in the authorized capital of
such Liable Party; 

  

	 	(vi)	 take any other actions that can result in such Liable Party discharging obligations to the Borrower as a
priority vs. its obligations to the Creditor; 

  

	 	(vii)	 setoff claims against such Liable Party a) in connection of arising out of this Agreement and / or Valid Loans
and / or b) in connection of arising out of other agreement concluded in connection with agreements in question, and / or c) under the law (including, by way of recourse); and / or 

 

	 	(viii)	 put claims as a competing creditor of the Liable Party simultaneously with claims put forward by any Creditor
under this Agreement and / or Valid Loans and / or other agreements concluded in connection with agreements in question. 

This clause shall not apply to transactions in the ordinary course of business. 

  
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 Should the Borrower receive any payments or distributions from the Liable Party while
exercising the rights (during the period, when any Creditor has put forward the claim against the Liable Party), the Borrower shall transfer the funds / make sure the funds are transferred to discharge the respective obligations to the Financing
Parties under Financial Documents. 
  

	 	(h)	 comply (make sure any company of Mechel Group complies) with the following financial indicators based on the
consolidated audited annual financial statements of Mechel Group according to IFRS, reviewed by auditors semi-annual consolidated financial statements of Mechel Group according to IFRS and quarterly unaudited condensed consolidated financial
statements of Mechel Group according to IFRS (as regards the first and the third quarter of each year): 

 Net Debt /
EBITDA: 
  

	 	•	 	 until December 31, 2021 - not more than 6.00x; 

 

	 	•	 	 until December 31, 2022 - not more than 5.00x; 

 

	 	•	 	 until December 31, 2023 - not more than 4.50x; 

 

	 	•	 	 until December 31, 2024 - not more than 4.00x; 

 

	 	•	 	 until December 31, 2025 and further - not more than 3.00x; 

EBITDA / Net Interest Payments: 
  

	 	•	 	 until December 31, 2022 - not less than 2.00x; 

 

	 	•	 	 until December 31, 2023 and further - not less than 3.00x. 

EBITDA and Net Interest Payments shall be calculated for the last twelve (12) months based on the relevant consolidated financial
statements of Mechel Group according to or IFRS. 
 The financial covenants shall be tested every quarter on the 31st of March, 30th of
June, 30th of September and 31st of December. 
  

	 	(i)	 the Borrower shall obtain a prior written consent of the Credit Manager (acting on the basis of the Decision of
the Majority of Creditors) for the following types of actions/transactions performed by Mechel Group members and/or Liable Parties: 

  

	 	(i)	 acquisition of assets (other than shares and participatory interests) and capital expenditures, other than:

  

	 	(A)	 acquisition of current assets in the Ordinary Course of Business; 

 

	 	(B)	 acquisition of assets by a Liable Party without limitation of liability from another Liable Party without
limitation of liability; 

  

	 	(C)	 acquisition of assets by a Liable Party with limited liability from another Liable Party with limited
liability; 

  

	 	(D)	 acquisition of assets by a member of the Mechel Group (other than a Liable Party) from another member of the
Mechel Group (other than a Liable Party); 

  
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	 	(E)	 acquisition of assets by a member of the Mechel Group from another member of the Mechel Group for the aggregate
amount of two hundred fifty million (250,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of payment (in case of cash consideration) or the date of the transaction (in case of any other type
of consideration)) in any financial year; 

  

	 	(F)	 acquisition of non-current assets from companies that are not within
the Mechel Group, or the incurrence of capital expenditure, in each case, in the Ordinary Course of Business, which, together with the amount of debt raised under clause 18.1(i)(iii)(F), does not exceed ten billion (10,000,000,000) Rubles (or its
equivalent in any other currency at the rate of the Bank of Russia as at the date of calculation) in any financial year; 

provided that, if the Mechel Group does not use the permitted “cap” on capital expenditures as specified in (F) in any
financial year, the unused “cap” may be carried over to (but not further than) the immediately following financial year; 
  

	 	(ii)	 financial investments, including acquisition of securities (including shares/participatory
interests/investments in share/additional capital/property), other than: 

  

	 	(A)	 any such transactions between a member of the Mechel Group and another member of the Mechel Group for the
aggregate amount not exceeding five hundred million (500,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of payment) in any financial year; 

 

	 	(B)	 the restriction in (A) above shall not apply to (1) any transactions with shares/participatory
interests held, directly or indirectly, by Liable Parties, other than Mechel PJSC and Mechel-Trans LLC, and (2) any transactions with shares/participatory interests in the share capital of the Liable Parties, Trade Port Posiet JSC and
Mechel-Temryuk Port LLC; 

  

	 	(C)	 cash deposits in (1) banks within the VTB Group, (2) other banks whose rating, according to any of
S&P / Moody’s / Fitch, is no more than two grades lower than the Credit Manager’s rating, (3) Uglemetbank JSC, (4) any other banks, provided that the aggregate amount of all funds deposited with such banks does not exceed, at
any time, one billion (1,000,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of depositing); 

  

	 	(D)	 other financial investments, subject to the Credit Manager’s prior consent in writing;

  

	 	(iii)	 attracting credits, loans and other financial borrowings (including advance payments for a period of over one
hundred and eighty (180) calendar days and other instruments whose economic nature is that of attracting borrowings), other than: 

  

	 	(A)	 loan facilities advanced to the Mechel Group members to finance their operations in the Ordinary Course of
Business in the aggregate amount not exceeding five billion (5,000,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of calculation) in any financial year; 

  
 80 

	 	(B)	 overdraft facilities up to the aggregate amount not exceeding five billion (5,000,000,000) Rubles (or its
equivalent in any other currency at the rate of the Bank of Russia as at the date of calculation) at any time, provided that the maturity of each of tranches thereunder is forty five (45) days or less; 

 

	 	(C)	 bank guarantees in order to obtain a VAT refund, without limitation of its aggregate value;

  

	 	(D)	 any other bank guarantees securing the Mechel Group’s liabilities incurred by it in the Ordinary Course of
Business, in the aggregate amount not exceeding, at any time, twenty billion (20,000,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of calculation); 

 

	 	(E)	 (without prejudice to Article 8.3 (Voluntary early repayment of Outstanding Credit)) loan facilities
advanced to refinance existing liabilities of the Mechel Group members, provided that such refinancing shall not result in the creation of additional security and/or an increase in the overall debt and/or an increase in the cost of financing and/or
a reduction of the debt maturity; 

  

	 	(F)	 any indebtedness incurred under a lease agreement in relation to assets required to conduct its operations in
the Ordinary Course of Business, provided that the amount of such indebtedness, together with capital expenditures incurred under clause 18.1(i)(i)(F), does not exceed ten billion (10,000,000,000) Rubles (or its equivalent in any other currency at
the rate of the Bank of Russia as at the date of calculation) in any financial year (and further provided that, for the purpose of calculation of the amount of such indebtedness, only principal debt under the relevant lease agreements shall be taken
into account as such debt is or would be reflected in the financial statements prepared in accordance with the IFRS); 

  

	 	(G)	 any other loans as permitted under clause 18.1(i)(iv) below; 

 

	 	(iv)	 granting/repayment of loans and other financial borrowings (including advance payments (with respect to the
advance payments received by Mechel Group members and/or the Liable Parties this subparagraph limits only the advance payments received for a period of over one hundred and eighty (180) calendar days) and other instruments whose economic nature
is that of provision of financing/attracting borrowings), other than the following transactions (provided that all loans falling under (A) – (J) below are unsecured): 

 

	 	(A)	 the relevant transactions between a Liable Party without limitation of liability and another Liable Party
without limitation of liability; 

  

	 	(B)	 the relevant transactions between a Liable Party with limited liability and another Liable Party with limited
liability; 

  

	 	(C)	 the relevant transactions between a member of the Mechel Group (other than a Liable Party) and another member
of the Mechel Group (other than a Liable Party); 

  

	 	(D)	 loans advanced/repaid by a Liable Party with limited liability to another Liable Party with limited liability;

  

	 	(E)	 loans advanced/repaid by a Liable Party to another member of the Mechel Group (other than a Liable Party) for
the aggregate amount not exceeding five billion (5,000,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of payment) in any financial year;  

  
 81 

	 	(F)	 loans advanced/repaid by a Liable Party with limited liability to another member of the Mechel Group (other
than a Liable Party), provided that, within thirty (30) calendar days from the date such loan is so advanced or repaid, as applicable, by the Liable Party with limited liability, any Liable Party receives the equivalent cash amount as a result
of a member of the Mechel Group (other than a Liable Party) making the repayment of, or advancing, a loan to such Liable Party; 

  

	 	(G)	 loans advanced/repaid by a Liable Party without limitation of liability to another Liable Party without
limitation of liability (1) in the aggregate amount not exceeding two billion (2,000,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of payment) in any financial year, or
(2) provided that, within thirty (30) calendar days from the date such loan is so advanced or repaid, as applicable, by the Liable Party without limitation of liability, any Liable Party without limitation of liability receives the
equivalent cash amount as a result of a member of the Mechel Group (other than a Liable Party without limitation of liability) making the repayment of, or advancing, a loan to such Liable Party without limitation of liability; 

 

	 	(H)	 loans advanced/repaid by a Liable Party without limitation of liability to a member of the Mechel Group (other
than a Liable Party), provided that, within thirty (30) calendar days from the date such loan is so advanced or repaid, as applicable, by the Liable Party without limitation of liability, any Liable Party without limitation of liability
receives the equivalent cash amount as a result of a member of the Mechel Group (other than a Liable Party) making the repayment of, or advancing, a loan to such Liable Party without limitation of liability; 

 

	 	(I)	 loans advanced/repaid by a member of the Mechel Group (other than a Liable Party) to a Liable Party for the
aggregate amount not exceeding five billion (5,000,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of payment) in any financial year; 

 

	 	(J)	 loans advanced/repaid by a member of the Mechel Group (other than a Liable Party) or a Liable Party without
limitation of liability to Mechel PJSC for the aggregate amount (including the amount of dividends paid by such persons to Mechel PJSC under clause 18.1(i)(xiii)(D)) not exceeding five billion (5,000,000,000) Rubles (or its equivalent in any other
currency at the rate of the Bank of Russia as at the date of payment) in any financial year; 

  

	 	(K)	 funds on-loaned by a member of the Mechel Group to another member of
the Mechel Group using the proceeds of the Credit advanced to the Borrower hereunder, provided that such funds are applied in accordance with the purpose as set out in Article 3 (Purpose) hereof; 

 

	 	(L)	 loans advanced/repaid by a Liable Party to Mechel PJSC, provided that the proceeds of such loan/repayment shall
be further applied towards (1) the repayment of principal debt and payment of interest under the notes issued by Mechel PJSC for the total amount not exceeding six billion (6,000,000,000) Rubles (or its equivalent in any other currency at the
rate of the Bank of Russia as at the date of payment), as accrued since the Restructuring Date and during the term hereof, and (2) the repayment of debt due under facility agreements between Mechel PJSC and the Bank; 

  
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	 	(M)	 loans advanced by the Guarantor to any Liable Parties for the aggregate amount not exceeding one billion
(1,000,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of payment), provided that such loans are repaid by the Liable Parties within sixty (60) calendar days of the provision of such
loan; 

  

	 	(v)	 provision of guarantees and/or suretyships (or similar instruments) to secure obligations of third parties,
including any persons within the Mechel Group, other than sureties and guarantees: 

  

	 	(A)	 issued by a member of the Mechel Group (other than a Liable Party) to secure obligations of another member of
the Mechel Group (except as set out in (C) below); 

  

	 	(B)	 issued by a Liable Party to secure obligations arising under any transaction which is permitted under clause
18.1(i)(iii)(A)-(F); 

  

	 	(C)	 issued by a member of the Mechel Group in favour of tax authorities in respect of tax liabilities of another
member of the Mechel Group in connection with an application for VA refund, provided that the aggregate amount of the guarantor’s/surety’s liability under such guarantees and sureties does not exceed two billion (2,000,000,000) Rubles (or
its equivalent in any other currency at the rate of the Bank of Russia as at the date of calculation) at any time; 

  

	 	(vi)	 any disposal of assets (other than shares and participatory interests) by members of the Mechel Group, other
than a disposal: 

  

	 	(A)	 current assets in the Ordinary Course of Business; 

 

	 	(B)	 assets (including in the form of the provision of financial assistance) by a Liable Party without limitation of
liability to another Liable Party without limitation of liability; 

  

	 	(C)	 assets (including in the form of the provision of financial assistance) by a Liable Party with limited
liability to another Liable Party with limited liability; 

  

	 	(D)	 assets (including in the form of the provision of financial assistance) by a member of the Mechel Group (other
than a Liable Party) to another member of the Mechel Group (other than a Liable Party); 

  

	 	(E)	 assets by a member of the Mechel Group to another member of the Mechel Group for the aggregate amount not
exceeding two hundred fifty million (250,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of payment (in case of cash consideration) or the date of the transaction (in case of any other type
of consideration)) in any financial year; 

  

	 	(F)	 assets to companies outside the Mechel Group, provided that: (1) the aggregate value of such disposals
during the period from the Restructuring Date to the termination date of this Agreement does not exceed two point five 

  
 83 

	 	
(2.5) per cent. of the fixed assets of the Mechel Group as at the latest reporting date, and (2) such disposal is made in an arm’s length transaction for cash and instalments, if any,
are paid within three (3) months; 

  

	 	(vii)	 any disposal of shares and participatory interests by members of the Mechel Group, other than a disposal:

  

	 	(A)	 of shares and participatory interests by members of the Mechel Group to companies outside the Mechel Group,
provided that the aggregate share of companies whose shares/participatory interests are disposed of in any financial year, in the consolidated EBITDA and fixed assets of the Mechel Group does not exceed one (1) per cent. in the previous
financial year; 

 provided that the exception in (A) above shall not apply to (1) shares/participatory
interests in the share capital of Liable Parties, Trade Port Posiet JSC and Mechel-Temryuk Port LLC, and (2) shares/participatory interests directly or indirectly held by Liable Parties, other than Mechel PJSC and Mechel-Trans LLC; 

 

	 	(B)	 in a transaction between members of the Mechel Group for the aggregate amount not exceeding five hundred
million (500,000,000) Rubles (or its equivalent in any other currency at the exchange rate of the Bank of Russian as at the date of payment) in any financial year; 

provided that the exception in (B) above shall not apply to (1) transactions involving shares/participatory interests directly or
indirectly held by Liable Parties, other than Mechel PJSC and Mechel-Trans LLC, and (2) transactions involving shares/participatory interests in the share capital of Liable Parties, Trade Port Posiet JSC and Mechel-Temryuk Port LLC; 

 

	 	(viii)	 an Encumbrance of assets or rights, except for: 

 

	 	(A)	 any Encumbrance which is in existence as at the date of execution of Addendum 1 and (solely in relation to a
hypothecation, mortgage, pledge and security assignments and excluding any Encumbrance of an asset purchased under a hire purchase agreement, where such Encumbrance is created by virtue of law, and any Encumbrance over payment, pledge and other
accounts and cash deposited in payment, pledge and other accounts of the Mechel Group companies) listed in the Encumbrance Letter; 

provided that, in case such Encumbrance is subsequently released, it is no permitted to create an Encumbrance over the relevant assets to
secure any liabilities to third parties without the Credit Manager’s prior consent in writing; 
  

	 	(B)	 any Encumbrance over an asset purchased under a hire purchase agreement, where such Encumbrance is created by
virtue of law; 

  

	 	(C)	 any Encumbrance which is created in relation to obligations arising under any transactions permitted under
clause 18.1(i)(iii)(E); 

  

	 	(D)	 any Encumbrance which is created in favour of Gazprombank (Joint Stock Company) under the terms of the
restructuring of liabilities owed by the Mechel Group companies to Gazprombank (Joint Stock Company) (the terms of restructuring of the facilities advanced by Gazprombank (Joint Stock Company) shall be agreed with the Credit Manager);

  
 84 

	 	(ix)	 other significant transactions violating any of the following conditions: 

 

	 	(A)	 amount of the transaction/transactions of any Liable Party exceeds ten percent (10%) of the balance-sheet value
of assets of any relevant Liable Party based on RAS reporting framework for a Russian Federation resident or other applicable reporting framework for a Russian Federation non-resident in the aggregate for
every past twelve (12) months; 

  

	 	(B)	 amount of the transaction/transactions of a Mechel Group member together with other similar transactions of
Mechel Group members exceeds ten percent (10%) of the balance-sheet value of Mechel Group assets determined on the basis of the latest audited consolidated annual financial statements of Mechel Group according to IFRS, in the aggregate for every
past twelve (12) months; 

  

	 	(x)	 reorganization (other than): 

 

	 	(A)	 any reorganization in the form of transformation of a legal entity of any particular legal form into a legal
entity of another legal form (without involving any other form of reorganization), provided that the Borrower shall procure that all acts as may be required to preserve the pledge created under the Security Agreement in relation to
shares/participatory interests in the share capital of the company to be so reorganized and all registrations and records in relation to such pledge; 

  

	 	(B)	 any reorganization of a member of the Mechel Group who is not a Liable Party; 

 

	 	(xi)	 change of the core activity; 

 

	 	(xii)	 decrease of the authorized capital (except for the decrease in accordance with the mandatory legislation if it
does not affect the Liable Parties) and/or issue of new shares (including additional authorized shares), repurchase of own shares (except for the repurchase in accordance with the mandatory legislation); 

 

	 	(xiii)	 payment of dividends or making other similar payments (including repayment of the loans obtained from the
affiliates, other than those specified in clause 18.1(i)(iv) above), except for: 

  

	 	(A)	 payment of dividends by a member of the Mechel Group to a Liable Party without limitation of liability, subject
to the restrictions in (F) below; 

  

	 	(B)	 payment of dividends by a Liable Party with limited liability or a member of the Mechel Group (other than a
Liable Party) to a Liable Party with limited liability, subject to the restrictions in (F) below; 

  

	 	(C)	 payment of dividends by a member of the Mechel Group (other than a Liable Party) to another member of the
Mechel Group (other than a Liable Party), subject to the restrictions in (F) below; 

  

	 	(D)	 payment of dividends by a Liable Party without limitation of liability to Mechel PJSC (1) for the
aggregate amount (together with the amount of loans referred to in clause 18.1(i)(iv)(J)) not exceeding five billion (5,000,000,000) Rubles in any financial year, and (2) without any cap on the amount of such dividends, provided that Mechel
PJSC shall apply the full amount of such dividends towards repayment of its debt to Liable Parties without limitation of liability; 

  
 85 

	 	(E)	 payment of dividends on preference shares of Mechel PJSC (1) in the amount calculated under the articles
of Mechel PJSC, but in any event not exceeding twenty (20) per cent. of the Mechel Group’s consolidated net income for the relevant financial year, or, the amount so calculated under the articles of Mechel PJSC is nil or negative, then
(2) in the amount not exceeding one hundred million (100,000,000) Rubles in any financial year; 

  

	 	(F)	 payment of dividends to minority shareholders of the Mechel Group companies for the aggregate amount not
exceeding five hundred million (500,000,000) Rubles (excluding payments made under sub-clause (E) above) in any financial year; 

 

	 	(xiv)	 transactions (including affiliates) not on an arm’s length basis. 

 

	 	(j)	 

  

	 	(i)	 ensure, starting from the third (3rd) calendar quarter of 2018, that based on results of the past calendar
quarter the actual amount of Revenue from sales received from third parties and companies of Mechel Group to current accounts and foreign currency current accounts of Mechel Group companies (except for Kuzbass Power Sales Company PJSC) opened with
the Bank in the total amount of Revenue from sales received from third parties in all banks based on the actual data for the quarter preceding the past quarter corresponds the share of the total loan indebtedness owed by the Mechel Group companies
to the VTB Group in the total amount of the total loan indebtedness owed by the Mechel Group companies to all credit institutions in the immediately preceding quarter; 

 

	 	(ii)	 as of the Restructuring Date, the Borrower shall procure that, as at the end of each calendar quarter, the
actual amount of sales Revenue received by the Mechel Group companies incorporated in Russia from non-Russian parties in a foreign currency to settlement accounts and foreign currency-denominated accounts of
the Mechel Group companies (excluding Kuzbass Power Sales Company PJSC) with the Bank is such that the share of such sale proceeds in the aggregate amount of foreign currency-denominated sales Revenues received by the Mechel Group companies
incorporated in Russia from non-Russian third parties, based on the actual results for the immediately preceding quarter, corresponds the share of the total loan indebtedness owed by the Mechel Group companies
to the VTB Group in the total amount of the total loan indebtedness owed by the Mechel Group companies to all credit institutions in the immediately preceding quarter. 

For purpose of determining the amount of the Revenue from sales, the amount of indebtedness of Mechel Group companies on the principal in all
banks as of the first day of the first month of the past quarter shall be understood as the total loan indebtedness of Mechel Group companies to banks. 

The calculation of the Revenue from sales shall not include payments (debit turnover) to repay debts on loans of Mechel Group companies.

Conversion of revenue on the accounts and debts in different currencies shall be made at the exchange rate of the Bank of Russia on the last
day of the quarter, the revenue for which is calculated. 
  

	 	(k)	 obtain approval (ensure obtaining approval) of changes to the conditions (reduction of the general and/or
weighted average term, rate growth above the interest rate equal to the CBR Key Rate multiplied by one point five (1.5) per cent. per annum, for loans in rubles and 8% 

  
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(eight percent) per annum for loans in US Dollars or Euros, or other payments (including, but not limited to, fees, penalties, etc.) or provision of additional security under (except for that
provided for by sub-clause 18.1(i)(viii) of Article 18.1 (General Obligations and obligations to Comply with Financial Indicators)) of credit agreements between any Mechel Group company and any Other
Senior Creditor; 

  

	 	(l)	 to maintain (enforce maintaining) the ratio of Mechel Group’s debt to VTB Group / Mechel Group’s debt
(under credit agreements) to any Other Senior Creditor as of the date of signing this Agreement, considering provisions of Article 8.4 (Mandatory early repayment of Outstanding Credit ) of this Agreement: 

 

	 	(m)	 to ensure the surety agreement is concluded with Surety 10 according to the form agreed by the Parties within
10 (Ten) Business Date from the date, when revenue portion of the Trader and / or Mechel Group EBITDA according to IFRS exceeded 2.5 (Two point five) percent, and / or revenue portion of any Mechel Group company and / or EBITDA and / or fixed assets
of Mechel Group according to IFRS exceeded 10 (Ten) percent. This clause shall not apply to Kuzbass Power Sales Company PJSC OGRN 1064205110133 and Mechel-Energo LLC OGRN 1027700016706 until share of EBITDA and fixed assets of each of Kuzbass Power
Sales Company PJSC and Mechel-Energo LLC OGRN 1027700016706 in the respective indicator of Mechel Group according to IFRS is less than 10 (Ten) percent. Revenue and EBITDA shall be calculated for the last twelve (12) months based on the
relevant consolidated financial statements of Mechel Group according to IFRS; 

  

	 	(n)	 in accordance with Federal Law No. 395-1 “On Banks and
Banking Activities” dated December 2, 1990, provide or ensure the provision of documents (information) by the pledgors to the Credit Manager and perform or ensure performance by the pledgors of other actions necessary for inspection by the
authorized representatives (employees) of the Bank of Russia of the collateral (if any) at its location (place of storage) and familiarization with activities of the Borrower directly on site; 

 

	 	(o)	 make sure that value of the Borrower’s net assets (as defined in Order No. 84n of the Ministry of
Finance of Russia dated August 28, 2014, The Order of Defining Value of Net Assets) in no event shall be less than the minimum authorized stock required by the Russian laws; 

 

	 	(p)	 fulfill when due all and any subsequent conditions specified in Appendix 4 (Subsequent
Conditions) and Addendum 1; 

  

	 	(q)	 procure that there are no Encumbrances in relation to any rights under any Intragroup Loans;

  

	 	(r)	 procure on a quarterly basis, as of the Restructuring Date, that a general shareholders’ meeting of Mechel
PJSC is held and that the agenda of any such meeting shall include the granting of the shareholders’ consent to the execution of an addendum to the Suretyship to which Mechel PJSC is a party incorporating the surety’s undertaking to be
liable for the Borrower’s performance of any and all its obligations under this Agreement without limitation of the surety’s liability (provided that such obligation shall cease to be effective as of the date the general
shareholders’ meeting of Mechel PJSC so consents to the execution of such addendum), and, provided that such consent is granted, procure the execution of such addendum within ten (10) Business Days from the date of the minutes of the
relevant general shareholders’ meeting of Mechel PJSC formalizing its resolution to grant such consent; and 

  

	 	(s)	 properly comply with all other conditions of Financial Documents. 

 

	18.2	 The Borrower shall (and shall procure that each other Liable Party shall) notify the Credit Manager of any
Default on Obligations and any default under material obligations listed in Appendix 9 (List of Material Breaches) and any steps, if any, taken by it to remedy such Default on Obligations or such default under material obligations, within
five (5) Business Days upon its becoming aware of any such Default on Obligations or default. 

  
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	19.	 ACCOUNTS 

  

	19.1	 Repayment of the Outstanding Credit, payment of accrued interest, and other amounts due to the Financing
Parties under the Financial Documents shall be made by the Credit Manager directly debiting funds from the Borrower’s Accounts pursuant to Article 19.3 (Accounts). 

 

	19.2	 If there are insufficient or no funds in the Borrower’s Accounts to meet all claims put forward against
them, including claims of the Financing Parties, or it is impossible to write off the funds from the Borrower’s Accounts for other reasons, the Borrower shall discharge the liabilities under Financial Documents by transferring funds from its
accounts in other credit institutions to the Credit Manager’s Account converting funds in the Loan currency, if required. 

  

	19.3	 For the purpose of properly discharging the Borrower’s liabilities under Financial Documents, including
the obligation to pay penalties provided for hereunder, The Borrower shall provide the Credit Manager with consent to direct debit of funds due to the Financing Parties under Financial Documents from the Borrower’s Accounts. Borrower’s
consent to the Credit Manager writing off funds from the Borrower’s Accounts against discharge of obligations under Financial Documents is direct debit, which is granted in the amount of the Lending Limit provided for hereunder, interest, fees,
penalties due to the Financing Parties without restricting the number of payment documents executed by the Credit Manager pursuant to the terms and conditions of this Agreement and liabilities undertaken by the Borrower pursuant to Financial
Documents. 

  

	19.4	 Hereby, if there are insufficient or no funds in the Borrower’s Accounts in Euro, the Borrower shall
instruct the Credit Manager to sell RUB or another currency from the respective Borrower’s account opened in the Credit Manager, and to utilize the funds obtained as a result of conversion to repay the respective Borrower’s debt under
Financial Documents in compliance with the law. RUB / EURO conversion shall be at the exchange rate of the Credit Manager as of the date of such transaction. 

  

	19.5	 Where the balance of the Ruble-denominated Borrower’s Account is nil or negative or insufficient, the
Borrower hereby authorizes the Credit Manager to sell amounts in Euro or another currency from the Borrower’s relevant account with the Credit Manager and apply the proceeds of such conversion in repayment of the Borrower’s debt due and
payable under the Financial Documents in accordance with the law, provided that, for such purpose, the conversion of Euro into Rubles shall be effected at the exchange rate of the Credit Manager as at the date of such conversion.

  

	19.6	 Herewith, the Borrower confirms that terms and conditions of this Agreement are the instruction to purchase
Euros and Rubles, accordingly, and at the same time the Borrower’s instruction to credit the purchased amount in Euro or Rubles to discharge the Borrower’s liabilities under Financial Documents. 

 

	20.	 EVENTS OF DEFAULT 

 

	20.1	 Each of the cases, events or circumstances described in this Article 20.1 (Events of Default) is an
Event of Default: 

  

	 	(a)	 non-fulfillment or improper fulfilment by the Borrower and / or
Sureties and / or Guarantor and / or any Mechel Group company of any obligation to the Creditor under Financial Documents or any other VTB Group Contract, or non-fulfillment or improper fulfilment by the
Liable Parties of its obligations under any agreement they conclude with the party, which is a Creditor’s affiliate in compliance with the law, or the party that belongs to the Creditor Group, including the Credit Manager, has the right to
unilaterally request early performance 

  
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of obligations by the Borrower under Financial Documents in case of non-fulfillment or improper fulfilment of the obligations: 

 

	 	(i)	 to submit business accounting and other reporting documents after expiry of 30 (Thirty) calendar days after the
deadline established by Articles 17.2 - 17.4 (Obligations to provide information) on submitting the documents to the Credit Manager, 

  

	 	(ii)	 to submit (ensure submission of) notarized copies of the documents confirming state registration of amendments
to the constituent documents of the Liable Parties in terms established by clause 17.7(a) of Article 17.7 (Obligations to provide information); 

  

	 	(b)	 if the Borrower or the Liable Party delays any of the payments due to the Parties to the Financing from the
Borrower or the Liable Party, except for the cases, when the delay in payment was caused solely by an administrative error or Technical Failure and was actually made within 5 (Five) Business Days from the date, when the payment in question became
due; 

  

	 	(c)	 non-performance or improper performance by any Liable Party or any
company of Mechel Group of any financial obligation to any extent under any agreement to the Credit Manager that in accordance with the Legislation is an affiliate of the Credit Manager or a party belonging to the Credit Manager Group and if these
violations were not remedied within five (5) Business Days from the date of their occurrence; 

  

	 	(d)	 the Credit Manager having information: 

 

	 	(i)	 of the Liable Parties or any Mechel Group company violating payment obligations under any of its commitments to
third parties under the Financial Debt for the amount exceeding USD 5,000,000 (Five Million) (or RUB equivalent at the exchange rate of the Bank of Russia as of the date of the settlement) as total interest and / or USD 25,000,000 (Twenty-Five
Million) (or RUB equivalent at the exchange rate of the Bank of Russia as of the date of the settlement) as total principal debt and / or other obligations and / or creditors claiming accelerated repayment of the Financial Debt of Mechel Group
company for the total amounts exceeding those stated above and / or the right of acceleration of Mechel Group debt for the total amounts exceeding those stated above arising for the creditors of Mechel Group, with these violations not having been
remedied within 5 (Five) Business Days from the time of their occurrence, except for the violations the Financing Parties have been notified of by the Borrower in writing before the date of Addendum 1; and / or 

 

	 	(ii)	 of the Liable Parties or any Mechel Group company violating payment obligations under any of its commitments to
third parties to make advance payments and for other reasons (other than those stated in clause 20.1(d) of Article 20.1 (Events of Default)), starting since the Restructuring Date, provided the total amount of payment obligations of all
Mechel Group companies (1) outstanding for the period of less than 90 (Ninety) calendar days exceeds five billion (5,000,000,000) Rubles (or its equivalent in any other currency at the exchange rate of the Bank of Russian as at the date of
calculation), and / or (2) outstanding for the period of more than 90 (Ninety) calendar days exceeds two billion five hundred million (2,500,000,000) Rubles (or its equivalent in any other currency at the exchange rate of the Bank of Russian as
at the date of calculation). 

  

	 	(e)	 any of the Creditors having information that financial standing of the Borrower or the Liable Party, at the
discretion of Most Creditors, has been materially aggravated and / or other circumstances emerged that would result in the Borrower’s or the Liable Party’s failure to fulfill / properly fulfill its obligations under Financial Documents,
unless these aggravations and / or circumstances have been remedied within 5 (Five) Business Days since the time they emerged; 

  
 89 

	 	(f)	 the Borrower and/or a Mechel Group company and/or third parties taking any actions aimed at
(i) terminating or reducing the security, or (ii) declaring invalid or not concluded the transactions ensuring performance of obligations by the Borrower under Financial Documents and if the Pledge Manager or third parties file a claim as
a part of a judicial procedure in relation to the pledged item including measures to enforce such claims including in connection with commencement of the Pledgor bankruptcy proceedings; 

 

	 	(g)	 collection letters, payment orders, order of enforcement are issued in relation to the Borrower’s Accounts
and other accounts of the borrower in the Credit Manager and/or funds in the said accounts in the total amount of more than 5,000,000 (five million 20) US dollars (or equivalent in rubles at the exchange rate of the Bank of Russia as of the
corresponding date) are seized, unless these restrictions are lifted within twenty (20) Business Days from the date of their occurrence; 

  

	 	(h)	 the Borrower applying to cancel account agreements, under which Borrower’s Accounts have been opened;

  

	 	(i)	 the Borrower or Liable Party submitting untrue or knowingly incomplete or false information, including
misleading or invalid documents; 

  

	 	(j)	 the authorized management body of the Borrower and/or the Liable Party adopting a resolution on liquidation,
reorganization of the Borrower and/or the Liable Party, respectively; 

  

	 	(k)	 if a stakeholder filed an application to the commercial court seeking to recognize any of the Liable Party as a
bankrupt, except for: 

  

	 	(i)	 applications the Financing Parties were informed in writing by the Borrower (with the copy e-mailed) before the date of Addendum 1; 

  

	 	(ii)	 any application where the amount of such application does not exceed seventy million (70,000,000) Rubles;

  

	 	(iii)	 any application, where, following the review of reasonableness of such application by a commercial court, the
commercial court issues a ruling to refuse instituting the observation procedure and take no cognizance of the application or a ruling to refuse instituting the observation procedure and terminate the proceedings, provided that as at the date of
such application the aggregate amount of all claims for the declaration of the Liable Party bankrupt as submitted by interested parties to a commercial court does not exceed two billion (2,000,000,000) Rubles. 

 

	 	(l)	 full or partial loss of the security as provided for by Financial Documents, or material aggravation of its
condition and state, including any Liable Party violating its obligations under Financial Documents under circumstances the Financing Parties are not liable for; 

 

	 	(m)	 forfeiture of property of any Liable Party, the book value of which exceeds in aggregate five (5) per
cent. of the book value of assets of the relevant Liable Party as at the date of such forfeiture (as calculated on the basis of statements under RAS for a resident of the Russian Federation or other applicable reporting for a non-resident of the Russian Federation); 

  

	 	(n)	 cancellation or revocation from any Liable Party of a license required to carry out core business, or the
license expired and it (license) was not extended or received within thirty (30) calendar days from the date of its revocation (expiry) / any Liable Party ceased to be a member

  
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of the self-regulatory organization (if in accordance with the Legislation this is required to carry out core business) and has not yet joined another self-regulatory organization/ has not
restored membership in the self-regulatory organization within thirty (30) calendar days from the date of membership termination; 

  

	 	(o)	 Initiation of criminal proceedings or criminal liability in respect of the sole executive body, members of the
management body of any of the Liable Parties in connection with exercise of their duties to the relevant party; 

  

	 	(p)	 occurrence of changes in the structure or personal membership of management bodies of the Liable Party that, in
the opinion of the Financing Parties can result in Liable Party’s failure to fulfill its obligations; 

  

	 	(q)	 failure by any of Mechel Group companies to comply with tax liabilities or other obligations for the period of
more than thirty (30) calendar days in respect of budget and non-budgetary funds in the amount of more than 750,000,000 (seven hundred and fifty million 00/100) rubles (or equivalent in foreign currency
at the exchange rate of the Bank of Russia as of the date of calculation) subject to the entry into force of a court decision on recovery of relevant tax liability or other obligation in relation to budget and
non-budgetary funds; 

  

	 	(r)	 the percentage of ordinary shares in the authorized capital of Mechel PJSC held by I. V. Zyuzin and his family
members, directly or through third parties, drops below fifty point one percent (50.1%) of the total amount of ordinary shares; 

  

	 	(s)	 Mechel PJSC ceases, or, in the reasonable opinion of the Liable Parties, there is a significant risk that in
the nearest future Mechel PJSC will cease, as a result of, without limitation, the institution of criminal proceedings in connection with an economic criminal offence, to hold, directly or indirectly (via third parties), more than fifty
(50) per cent. of shares in the share capital of each of the Liable Parties (excluding the holding of preference shares); 

  

	 	(t)	 the amount of the Borrower’s net assets by results of any quarter within duration of this Agreement is
negative; 

  

	 	(u)	 failure to comply with a court decision to recover from any Mechel Group company more than twenty five million
US Dollars ($25,000,000) (or its equivalent in rubles/other currency at the exchange rate of the Bank of Russia as of the date of entry into force of the relevant court decision) except for non-performance of
a valid court decision due to technical problems related to making the payment within five (5) Business Days from the date of entry into force of the court decision; 

 

	 	(v)	 non-performance/improper performance by the Borrower of the obligation
on the designated use of the Loan; 

  

	 	(w)	 a Financial Document is held, or sought to be held, non-existing or
invalid; 

  

	 	(x)	 there are changes in shareholders/participants holding, together with the affiliates, twenty (20) or more
per cent. of shares/participatory interests in the share capital of any Liable Party, or beneficiaries controlling the Borrower or the Pledgor, and such changes may, in the opinion of the Financing Parties, result in a failure by any Liable Party to
meet its obligations; 

  
 91 

	 	(y)	 the Borrower fails to procure that the Mechel Group companies exercise their corporate rights in relation to
Liable Parties or vote at general shareholders’/participants’ meetings of Liable Parties or do any other acts or made any other decisions within their control as may be required to: 

 

	 	(i)	 terminate, within one hundred and twenty (120) calendar days from the Restructuring Date, the authorities
of Khachaturov Tigran Garikovich, Darbinyan Minas Arsenovich, Shakina Anastasiya Sergeevna, Pravdina Daria Alexandrovna and Dun Ivan Ivanovich as members of the boards of directors of all Liable Parties; 

 

	 	(ii)	 ensure that there are no nominees of Other Senior Creditors or any of their affiliates or any creditor of the
Liable Parties under the Financial Debt sitting on the board of directors of any of the Liable Parties, unless such persons are elected to the board of directors of Mechel PJSC upon their nomination by minority shareholders of Mechel PJSC who, under
applicable law, may make nominations to the board of directors, provided that the Liable Parties shall do all in their power to ensure that other shareholders in Mechel PJSC cast their votes for the candidates included in the voting ballot other
than any candidate nominated by such minority shareholder; 

  

	 	(z)	 other circumstances witnessing that the Outstanding Credit will not be repaid in time; 

 

	 	(aa)	 if any member of the Mechel Group, without the Credit Manager’s prior consent in writing:

  

	 	(i)	 creates an Encumbrance over any of its assets in favour of any Other Senior Creditor (or provides any other
security, including, without limitation, a guarantee or suretyship), other than as set out in the Encumbrance Letter or otherwise permitted by the terms hereof; or 

 

	 	(ii)	 executes an agreement, contract, addendum (amendment agreement) or any other loan/facility documentation (an
“Other Senior Creditor Contract”) with any Other Senior Creditor providing: 

  

	 	(A)	 for an interest rate applying to such borrowings in excess of the interest rate under any of the VTB Group
Contracts in the same currency; 

  

	 	(B)	 that any non-capitalized interest to be paid on such borrowings shall
be calculated at a rate in excess of that applicable under any of the VTB Group Contracts in the same currency; and/or 

  

	 	(C)	 for any fees and commissions which are not provided for by any of the VTB Group Contracts and which are payable
at a rate in excess of the rate of fees and commissions payable under the VTB Group Contracts; and/or 

  

	 	(D)	 that the weighted average maturity of Financial Debt under such Other Senior Creditor Contract is shorter than
the weighted average maturity of the Credit; and/or 

  

	 	(E)	 for any other terms which are more favourable to the Other Senior Creditor than the key terms set out in the
VTB Group Contracts being: the maturity and the schedule of repayment of the Financial Debt, the interest rate and the terms of payment of interest, fees and commissions, Encumbrances, the terms and conditions of prepayment and liability for a
default or failure to meet an obligation when due (the amounts of fines, penalty fees and default interest); and/or 

  

	 	(iii)	 executes with any Other Senior Creditor, without the Credit Manager’s prior consent in writing:

  

	 	(A)	 any transactions involving derivative financial instruments; and/or 

  
 92 

	 	(B)	 any repurchase transactions and/or other transactions with securities; and/or 

 

	 	(C)	 any prepaid commodity forward, offtake or buyback agreements in relation to the Mechel Group’s products,

 provided that, if any of the events set out in this clause (aa) or a default under the obligations in clause 18.1(k) of
Article 18 (General Obligations and obligations to Comply with Financial Indicators) occurs, it shall not be an Event of Default if the Borrower procures, within thirty (30) Business Days (or any other term agreed by the Credit Manager
and the Borrower) after the occurrence of such event as specified in (i) – (iii) above, that the following action (as applicable) are duly taken: 
  

	 	(1)	 an Encumbrance over analogous and/or equivalent assets is created in favour of members of the VTB Group
(including the provision of guarantees and suretyships providing for the identical limitation of the surety’s liability); and/or 

  

	 	(2)	 addenda (amendment agreements) are executed in relation to the VTB Group Contracts in order to include therein
equivalent terms and provisions for the benefit of the relevant member of the VTB Group; and/or 

  

	 	(3)	 transactions identical to those specified in (iii) above are executed with a member of the VTB Group; and

  

	 	(bb)	 other cases provided for by the law. 

 

	20.2	 Acceleration 

In case of any Event of Default and any time after occurrence of any Event of Default that was not remedied (with the Creditors determining the
fact of Event of Default in their own discretion, and the Credit Manager having no obligation to provide the Borrower and / or Liable Party proof of the Event of Default): 
  

	 	(a)	 the Creditors acting through the Credit Manager as provided for by clause (b) below, shall have the right
to refuse to provide the Loan and/or demand accelerated repayment of the Outstanding Credit; and 

  

	 	(b)	 the Credit Manager shall have the right (and shall be obliged, in case it receives the respective Decision of
the Majority of Creditors) to send the written notice to the Borrower (with the copies sent to Sureties and the Guarantor), in which it: 

  

	 	(i)	 states the Creditors’ refusal to provide the funds within the Total Lending Limit (including the Amount to
be provided by the Creditors, if the amount is available at a certain point of time), after which the Creditors’ obligation to provide the Loan to the Borrower is terminated; and / or 

 

	 	(ii)	 states Creditors’ request to the Borrower, any Surety or the Guarantor of accelerated repayment of the
Outstanding Credit or any of its part, including accrued interest, fees and any other amounts due to Financial Parties under the Financial Documents, within 10 (Ten) calendar says since the date the Liable Party in question receives such request;
and / or 

  

	 	(iii)	 notifies the Borrower that Creditors are aware of the Event of Default and reserve the right to request from
the Borrower, any Surety or the Guarantor immediate accelerated repayment of the Outstanding Credit or any of its part, including accrued interest, fees and any other amounts due to Financial Parties under the Financial Documents; and / or

  
 93 

	 	(iv)	 notifies the Borrower that the Pledge Manager reserves the right to foreclose on the property, which is
security under the Collateral Agreements; and / or 

  

	 	(v)	 notifies the Borrower that Creditors have unilaterally terminated interest accrual in case the bankruptcy
petition against the Borrower has been submitted to the commercial court, or any Creditor put forward its claims under the Financial Documents after the commercial court had accepted the bankruptcy petition against the Borrower. In these cases,
interest is not accrued on the amount of the Outstanding Credit since the date the written notice of interest accrual termination is received, unless another date is stated in the notice. Termination of interest accrual in connection with the
bankruptcy petition against the Borrower being filed to the commercial court, or any Creditor putting forward its claims after the commercial court accepts the bankruptcy petition shall not relieve the Borrower of the obligation to pay the interest
already accrued by this time. 

  

	20.3	 Failure of the Financing Parties to exercise their rights provided for by the Financial Documents shall not be
refusal of the Financing Parties to exercise such rights in future. Single or partial exercise of the Financing Parties to exercise their rights provided for by the Financial Documents shall not be the ground to terminate other rights the Financing
Parties have in accordance with the Financial Documents. 

  

	21.	 LOAN COLLATERAL 

 

	21.1	 Collateral Agreements 

Each Creditor hereby confirms that he/she is familiar with the content of each Collateral Agreement and approves its signing by the Pledge
Manager. 
  

	21.2	 Status of Creditors and Appointment of the Pledge Manager 

 

	 	(a)	 The Parties hereby acknowledge and agree that all Creditors and the Pledge Manager, also being a Creditor, have
common claims against the Borrower in the amount corresponding to the Proportional Share of each corresponding Creditor, and, pursuant to clause 335.1 of the Civil Code, are joint and several co-pledgees under
the Collateral Agreements, with the rights of equal seniority. 

  

	 	(b)	 Pursuant to clause 356 of the Civil Code, each Creditor (except for the Creditor performing the functions of
the Pledge Manager) hereby authorizes the Pledge Manager to act for and on behalf of the Creditors, enter into Collateral Agreements as a pledgee with Pledgers and exercise all rights and perform all obligations of the pledgee under such Collateral
Agreements. For the avoidance of doubt, the Parties confirm that this Agreement (in its corresponding part) shall be, among other, a pledge management agreement. The Parties agree that the Creditor may perform the functions of the Pledge Manager.

  

	 	(c)	 The Parties acknowledge and agree that the Pledge Manager, when entering into Collateral Agreements for and on
behalf of the Creditors, exercising the rights and performing the obligations of the pledgee under the Collateral Agreements, shall exercise the rights of a joint and several pledgee solely and exclusively in the interests of all Creditors being
such at any moment before the Obligors fully perform their obligations under Financial Documents, in the order provided by this Agreement. No assignment of the rights by the Existing Creditor (within the meaning of Clause 22.2 (Assignment of
rights and transfer of obligations by the Creditors) 

  
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to the New Creditor (within the meaning of Clause 22.2 (Assignment of rights and transfer of obligations by the Creditors) shall affect the rights and obligations of the Pledge Manager and
the Creditors provided by this Agreement. 

  

	 	(d)	 The Creditors hereby undertake not to independently exercise their rights or perform their obligations as
pledgees, including making no claims against the Borrower and taking no recourse upon the assets or property of the Pledgers, except in case of termination of this Pledge management agreement according to clause 356.5 of the Civil Code. At the same
time the Creditors agree to take any necessary actions as requested by the Pledge Manager (including participation in legal proceedings as co-claimants) and to sign and issue to the Pledge Manager any
necessary documents, including powers of attorney which in the Pledge Manager’s reasonable opinion are required by the law and/or the court of law for the exercise of the rights and performance of the obligations of the Pledge Manager provided
by Financial Documents. 

  

	 	(e)	 The Pledge Manager’s exercise of the rights and performance of the obligations of the pledgee under the
Collateral Agreements shall not prevent the Pledge Manager’s engaging in any banking activities with any Mechel Group participant, including maintenance of bank accounts, granting of credits and attraction of deposits. If the Pledge Manager is
also a Creditor hereunder, he/she shall have the same rights and obligations under the Financial Documents as any other Creditor, and shall be entitled to exercise these rights and perform these obligations as though he/she were not a Pledge
Manager. 

  

	 	(f)	 The Pledge Manager shall not be responsible to the Creditors for his/her actions (or omissions), if he/she acts
(or omits to act) following the Decision of a Majority of Creditors. 

  

	21.3	 Rights and obligations of the Pledge Manager  

 

	 	(a)	 The Pledge Manager shall act as the pledgee for and on behalf of the Creditors, enter into Collateral
Agreements with Pledgers, exercise all rights and perform all obligations of the pledgee under the Collateral Agreements in conformity with the terms and conditions of this Agreement. In particular, without limitation, the Pledge Manager shall take
necessary measures for observance of the requirements to definitive registration (including entering into registers and notifying the counterparties) within the time limits provided in the corresponding Collateral Agreement. 

 

	 	(b)	 The Pledge Manager shall have the right to exercise at own discretion all and any rights of the pledgee
provided by the Collateral Agreements (including actions to terminate the pledge/release the subject of pledge from the said pledge in case the Borrower fully performs all its obligations secured by the same), except for the right (i) to make
changes (except technical or on the basis of the Decision of the Majority of Creditors) into Collateral Agreements and (ii) to take recourse upon the property being the subject of pledge under Collateral Agreements, if such property can be
disposed of only on the basis of the relevant Decision of the Majority of Creditors indicating the judicial or extrajudicial procedure for the levy of execution on the pledged property and specifying the method of disposing of the subject of pledge.

  

	 	(c)	 The Pledge Manager shall enforce the pledge in the order provided by the corresponding Collateral Agreement.
The property received by the Pledge Manager for the benefit of the Creditors as a result of enforcing the pledge under Collateral Agreements, and also any insurance payments related to the property pledged under the Collateral Agreements shall pass
to the shared ownership of the Creditors pro rata their Share. 

  

	 	(d)	 The money received by the Pledge Manager as a result of enforcing the pledge under Collateral Agreements, and
also any insurance payments related to the property pledged under the 

  
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Collateral Agreements and remaining after covering the costs incurred by the Pledge Manager for enforcing the pledge and making other mandatory payments shall be credited to the Account of the
Pledge Manager, and then remitted by the Pledge Manager to the account of the Credit Manager, with the Credit Manager then distributing the money among the Creditors pro rata their Share. 

 

	21.4	 Replacement of the Pledge Manager  

 

	 	(a)	 The Creditors may, and in case the banking license of the Pledge Manager is withdrawn, must take the Decision
by the Majority of Creditors to terminate the power of the Pledge Manager from the date specified in the Decision, and select a nominee for the position of the Pledge Manager (hereinafter referred to as the New Pledge Manager). Each Creditor
and Obligor hereby agree to the replacement of the Pledge Manager by a New Pledge Manager according to the provisions of this Clause 21.4 (Replacement of the Pledge Manager). 

 

	 	(b)	 The Pledge Manager can unilaterally refuse to exercise the powers of a pledge manager, provided the Pledge
Manager notifies each Creditor and the Borrower not less than 30 Business Days prior to the expected date of terminating the powers of the Pledge Manager. The Creditors shall take the Decision by the Majority of Creditors to select a nominee as the
New Pledge Manager not later than the expected date of termination of the powers of the Pledge Manager. 

  

	 	(c)	 The Creditors shall ensure that the New Pledge Manager should commence to perform the obligations of a Pledge
Manager specified in Clause 21.3 (Rights and obligations of the Pledge Manager) from the date the powers of the former Pledge Manager are terminated. The Pledge Manager shall sign and transfer all documents necessary for the New Pledge
Manager to exercise his/her rights and perform his/her obligations under this Agreement and Collateral Agreements. 

  

	 	(d)	 The Parties agree that New Pledge Manager shall become a party to this Agreement as the pledge manager from the
date the Agreement between the Pledge Manager, New Pledge Manager and Creditors is signed, unless another date is provided by such an agreement. After the relevant date any mention of the Pledge Manager in this Agreement will refer to the New Pledge
Manager. For the avoidance of doubt, appointment of a New Pledge Manager according to this Agreement shall not mean termination of the pledge management agreement within the meaning of p. 21.2(d), Clause 21.2 (Status of Creditors and Appointment
of the Pledge Manager). 

  

	 	(e)	 The Parties agree that the provisions of this Agreement concerning the rights and obligations of the Pledge
Manager can be modified by an agreement concluded between the Pledge Manager and the Creditors (except for the Creditor performing the functions of the Pledge Manager). The content of such an agreement should be approved prior to its conclusion by
the Decision of the Majority of Creditors, which may authorize any one Creditor to enter into such an agreement with the Pledge Manager for and on behalf of all Creditors (except for the Creditor performing the functions of the Pledge Manager). The
Creditors shall present the necessary documents and powers of attorney for such an agreement to be concluded by one Creditor for and on behalf of all Creditors (except for the Creditor performing the functions of the Pledge Manager).

  

	21.5	 Release of Security 

 

	 	(a)	 In this Article 21.5, the “Release Request” means a written request to release security over
shares as delivered by the Borrower to the Credit Manager and the Pledge Manager. 

  
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	 	(b)	 The Borrower may deliver a Release Request in relation to shares pledged under the relevant Share Pledge
Agreement (other than the Agreement on pledge of repurchased shares), subject to each of the following conditions being satisfied: 

  

	 	(i)	 the Net Debt / EBIDA ratio is less than 3,00x as at each of two consecutive quarterly test dates;

  

	 	(ii)	 there is no outstanding Event of Default or any other defaults or events of default giving rise to the right to
accelerate under any VTB Group Contract, unless such Event of Default or such other event or circumstance is waived by the relevant creditor; 

  

	 	(iii)	 the aggregate amount of repayments made by the Borrower since the Restructuring Date (inclusive) in relation to
the Outstanding Credit under the terms hereof is equal to or exceeds sixty five billion (65,000,000,000) Rubles (in Rubles or Euro at the Ruble/Euro exchange rate of the Bank of Russian as at the date of execution of Addendum 1); and

  

	 	(iv)	 the relevant Pledgor has executed in favour of the Creditors a written undertaking not to create any
Encumbrance in favour of other creditors in relation to more than twenty five (25) per cent. of ordinary shares in the relevant issuer so released under this Article. 

 

	 	(c)	 The Borrower may deliver a Release Request in relation to shares pledged under any Agreement on pledge of
repurchased shares, subject to each of the following conditions being satisfied: 

  

	 	(i)	 the Borrower has repaid the full amount of the Outstanding Credit in relation to Tranche D in accordance with
the terms hereof; and 

  

	 	(ii)	 there is no outstanding Event of Default or any other defaults or events of default giving rise to the right to
accelerate under any VTB Group Contract, unless such Event of Default or such other event or circumstance is waived by the relevant creditor. 

  

	 	(d)	 The number of shares to be released under the terms of clause (b) above shall be calculated in accordance
with the following formula: 

  

					
	(Number of pledged shares) × (1 – 	 	AC – AR	 	 )

	 	0,5 × AC

 where: 

AR means the aggregate amount of the Outstanding Credit (on a cumulative basis) repaid by the Borrower since the Restructuring Date
(inclusive) under the terms hereof, provided that, for the purpose of calculation of such amount and determination of whether the condition in clause (b)(iii) above is satisfied, the Ruble/Euro exchange rate of the Bank of Russia as at the date of
Addendum 1 shall be applied; 
 AC means the amount of the Euro-Denominated Outstanding Credit as at the date of Addendum 1 and: 

 

	 	(i)	 prior to the expiry of the Drawdown Period in relation to Tranche C and Tranche D, the Ruble-Denominated Total
Available Facility; or 

  

	 	(ii)	 after to the expiry of the Drawdown Period in relation to Tranche C and Tranche D, the aggregate amount of the
Credit in Rubles advanced to the Borrower under Tranche C and Tranche D. 

  
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	 	(e)	 If all of the conditions of the release as set out in this Article are duly fulfilled to the satisfaction of
the Credit Manager, the Pledge Manager shall, within ten (10) Business Days from the receipt of the Release Request by the Credit Manager and the Pledge Manager, execute the required agreements and documents to release the relevant shares and
do any other acts as may be required under applicable laws to release security over such shares. The Pledge Manager shall not be deemed to be in violation of the requirements of this Article where the release of security over the relevant shares may
not be effected for reasons outside the Pledge Manager control (including where the Borrower or the relevant Pledgor fail to cooperate in executing supplemental agreements or contracts to terminate the relevant Agreements on pledge of shares, in
particular, where such persons fail to procure the execution of the above documents by their signatories or pay necessary registration and notarial fees and expenses etc.). 

 

	 	(f)	 The Borrower shall pay to the Financing Parties all costs and expenses
pre-agreed with the Borrower (including external legal advisers’ fees and expenses) incurred by the Financing Parties in connection with the performance by the Pledge Manager of the provisions of this
Article, within the term specified in the relevant Pledge Manager’s request. 

  

	22.	 CHANGE OF THE PARTIES 

 

	22.1	 Assignment by the Borrower 

The Borrower has no right to assign his/her rights or transfer his/her obligations under Financial Documents without a prior consent of all
Creditors. 
  

	22.2	 Assignment of rights and transfer of obligations by the Creditors 

 

	 	(a)	 Any Creditor (hereinafter referred to as the Existing Creditor) needs no consent of the Borrower or
other Creditors, the Credit Manager and Pledge Manager to fully (or partially in the corresponding proportion) assign its rights of claim under all Financial Documents in aggregate arisen out of the obligations to extend a credit performed by the
Existing Creditor to any person being an Eligible Creditor or the Central bank of the Russian Federation (each hereinafter referred to as the New Creditor). At that the Existing Creditor, except for the Creditor being the Credit Manager,
needs no consent of the Borrower or other Creditors, the Credit Manager and Pledge Manager to fully (or partially in the corresponding proportion) transfer the obligations under all Financial Documents in aggregate or to simultaneously assign
his/her rights of claim and obligations to extend the Credit only to a person who can be a member of the creditors’ syndicate according to the Law on syndicated credits. 

 

	 	(b)	 The Existing Creditor should notify the Borrower (through the Credit Manager) on any assignment of claims
and/or transfer of obligations under all Financial Documents in aggregate five Business Days in advance. 

  

	 	(c)	 At: (i) the Existing Creditor’s assignment of his/her claims to the Central bank of the Russian
Federation, and also (ii) subsequent assignment by the Central bank of the Russian Federation of its claims to any person, (iii) the Existing Creditor’s assignment of his/her rights and/or transfer of his/her obligations to any legal
entity being a part of the VTB Group, or (iv) the Existing Creditor’s assignment of his/her rights and/or transfer of his/her obligations in case of an outstanding Event of Default, no consent of the Borrower to the assignment of the
rights and/or transfer of the obligations of the Existing Creditor, or his/her prior notice shall be required. For the purposes of Article 388 of the Civil Code and this paragraph, each Obligor hereby confirms that the personal identity of the
Creditor is of no essential value for the relevant Creditor. 

  
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	 	(d)	 In case the Existing Creditor transfers his/her obligations or simultaneously assigns his/her rights and
transfers his/her obligations to a New Creditor according to this Agreement, the Borrower and each Creditor hereby give their preliminary consent to the simultaneous transfer to the New Creditor of the corresponding obligations of the Existing
Creditor (debt transfer), if any. 

  

	 	(e)	 The Existing Creditor being the Credit Manager may not transfer all or some of his/her obligations of a
Creditor under all Financial Documents in aggregate or simultaneously assign its claims and obligations to extend a Credit to another person prior to the termination of his/her powers as the Credit Manager under this Agreement.

  

	22.3	 Procedure of assignment of rights and transfer of obligations 

 

	 	(a)	 Assignment of rights and/or transfer of debts is performed by signing of the Agreement of Assignment of the
Creditor’s rights by and between the Existing Creditor, the New Creditor and the Credit Manager and becomes effective on the date the Agreement of Assignment of the Creditor’s rights is signed, unless otherwise expressly provided by the
Agreement of Assignment of the Creditor’s rights. By signing the Agreement of Assignment of the Creditor’s rights the Credit Manager confirms his/her proper notice of the assignment of rights and/or transfer of obligations and receipt of
evidence of the assignment of rights and/or transfer of obligations to the New Creditor for the purposes of Article 9 of the Law on syndicated credits. 

  

	 	(b)	 On the date of signing the Agreement of Assignment of the Creditor’s rights: 

 

	 	(i)	 The Existing Creditor shall assign to the New Creditor the rights of the Existing Creditor within the scope
provided by the Agreement of Assignment of the Creditor’s rights; 

  

	 	(ii)	 The New Creditor shall undertake the obligations of the Existing Creditor transferred to it in the scope
provided by the Agreement of Assignment of the Creditor’s rights; 

  

	 	(iii)	 The Existing Creditor shall be released from his/her obligations to the extent these obligations are accepted
by the New Creditor; and 

  

	 	(iv)	 The New Creditor becomes a Creditor under this Agreement and will be bound by the terms and conditions of this
Agreement as a Creditor, including by confirming the appointment of the Pledge Manager as the pledge manager according to Clause 21.2 (Status of Creditors and Appointment of the Pledge Manager), and is also vested with the right to
participate in the decision making process of the Creditors. 

  

	 	(c)	 From the date any Agreement of Assignment of the Creditor’s rights is signed, the reference in this
Agreement to a Creditor includes any New Creditor. 

  

	 	(d)	 On the date of signing the Agreement of Assignment of the Creditor’s rights the New Creditor shall pay to
the Credit Manager a commission of five thousand (5 000) US dollars (plus VAT at the then current rate) for the services of the Credit Manager. The provisions of this paragraph shall not apply if one of the partier to the Creditor Rights Assignment
Agreement is the Central bank of the Russian Federation. 

  

	 	(e)	 Within three (3) Business Days after signing the Agreement of Assignment of the Creditor’s rights the
Credit Manager shall notify the Borrower and the Pledge Manager in writing on the transfer of obligations under this Agreement duly effected and deliver to the Borrower and the Pledge Manager a copy of the signed Agreement of Assignment of the
Creditor’s rights, and to the Borrower also - the document confirming the tax residence according to Clause 13.6 (Submission of documents confirming tax residence ), if applicable and if such document is provided to the Credit Manager by
the New Creditor. 

  
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	22.4	 Payment of interest at assignment 

 

	 	(a)	 The interest on the Outstanding credit, penalty and commission for the Proportional Share of the Existing
Creditor accrued prior to the signings of the Agreement of Assignment of the Creditor’s rights (the signing date included) and received from the Borrower (hereinafter referred to as the Accrued Amounts), and also other payments specified
in the Agreement of Assignment of the Creditor’s rights, shall be paid by the Credit Manager to the Existing Creditor on the nearest Interest payment date after the date of signing of the Agreement of Assignment of the Creditor’s rights.

  

	 	(b)	 The rights assigned by the Existing Creditor to the New Creditor will not include the right to claim the
Accrued Amounts. 

  

	 	(c)	 The New Creditor will receive the interest accrued on the Outstanding Credit related to the Proportional Share
of the New Creditor for the part of the Interest Period coming after the signing of the Agreement of Assignment of the Creditor’s rights (the signing date excluded) and ending on the last date of the corresponding Interest Period.

  

	22.5	 Liability limit of Existing Creditors  

None of the Existing Creditors shall give to the New Creditor any warranties, nor undertake any obligations to the New Creditor related to:

  

	 	(a)	 financial standing of any Obligor; 

 

	 	(b)	 observance or performance by any Obligor of his/her obligations under Financial Documents or any other
documents; or 

  

	 	(c)	 correctness of information contained in any Financial Document. 

Each New Creditor confirms to the Existing Creditor, other Financing Parties and each Obligor that he/she has studied all Financial Documents,
conducted (and will continue to conduct) his/her own independent review and appraisal of the financial standing of each Obligor and at making the decision on signing the Agreement of Assignment of the Creditor’s rights did not rely on any
information given to him/her by the Existing Creditor. 
  

	22.6	 Securing the rights of Creditors 

Each Creditor may, without the consent of the Obligor or another Financing Party, transfer in pledge or create another Encumbrance concerning
all or any part of his/her rights under any Financial Document for the benefit of any person being an Eligible Creditor, or the Central bank of the Russian Federation, and in the presence of an Outstanding Event of Default – to any person, to
secure the obligations of such Creditor, provided that such Creditor continues to perform his/her contractual obligations. 

  
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	23.	 FINANCING PARTIES 

 

	23.1	 Decisions of the Majority of Creditors 

 

	 	(a)	 The Creditors hereby agree that on the basis of the decisions taken unanimously by all Creditors or the
Majority of Creditors, and also in the instances expressly provided by the Agreement, the Creditors are entitled: 

  

	 	(i)	 to exercise or refuse to exercise certain rights under the Agreement on behalf of all Creditors;

  

	 	(ii)	 to have certain obligations under the Agreement performed by all Creditors; 

 

	 	(iii)	 in the instances provided by the Agreement or the applicable legislation to send to the Borrower notices on
refusal to perform this Agreement or on requesting that it be amended or terminated; 

  

	 	(iv)	 to choose the Credit Manager from among the Creditors, to vest him/her with its certain powers and to give
him/her instructions concerning the exercise of such powers; and 

  

	 	(v)	 to take any other actions on behalf of all Creditors, 

in any event, only at the presence of the Decision of the Majority of Creditors or all Creditors duly taken and executed. 

 

	 	(b)	 For the purposes of Clause 5.2 of the Law on syndicated crediting, the Creditors hereby agree that instead of
the rules of chapter 9.1 of the Civil Code the following order of decision making by all or the Majority of Creditors shall apply: 

  

	 	(i)	 order of placing questions for discussion: The Majority of Creditors acting through the Credit Manager,
and the Credit Manager on his/her own initiative, have the right to suggest the corresponding question for discussion and decision making by the Creditors; 

  

	 	(ii)	 order of informing on participation in decision making: The Credit Manager is obliged to inform all
Creditors by e-mail on the question being discussed; 

  

	 	(iii)	 procedure of voting by the Creditors: Within the period indicated in the notice the Credit Manager shall
collect the opinions of all Creditors on the question discussed by e-mail or with the use of the SWIFT system; 

  

	 	(iv)	 procedure of determining the number of the votes belonging to each Creditor: The number of the votes
belonging to each Creditor is determined on the basis of the formula given in the definition of the term “Majority of Creditors” in Clause 1 (Definitions); 

 

	 	(v)	 procedure of determining the Majority of Creditors: The Credit Manager determines the position of the
Majority of Creditors by analyzing all messages received by the fixed deadline from the Creditors with their approvals or instructions; 

  

	 	(vi)	 procedure of recording the decision made by the Creditors: The Creditors and the Credit Managing hereby
agree that the messages (approvals, instructions) received by the Credit Manager by e- mail or SWIFT from the Creditors constituting the Majority of Creditors, or from all Creditors, will be considered due
decision of the Majority of Creditors or all Creditors, as the case may be (hereinafter referred to as the Decision). The Credit Manager shall inform all Creditors on the results of calculation of the Creditors’ votes and the decision
taken by e-mail. For the avoidance of doubt, no minutes on the results of voting by the Creditors need be drawn for due recording of the Decision of the Creditors. 

 

	 	(c)	 Unless otherwise expressly stated in any Financial Document, any Decisions taken in the order provided by
Clause 23.1 (Decisions of the Majority of Creditors) shall be binding for all 

  
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Financing Parties. For the avoidance of doubt, the Creditors hereby instruct the Credit Manager, and the Credit Manager agrees to act according to the Decisions of the Majority of Creditors or
Decisions of all Creditors in the instances when the presence of such Decision is directly provided by this Agreement. 

  

	23.2	 Appointment of the Credit Manager 

 

	 	(a)	 The Parties agree that one of the Creditors meeting the requirements of Article 4.5 of the Law on syndicated
credits shall perform the functions of the Credit Manager. Each Financing Party (except for the Creditor performing the functions of the Credit Manager) hereby appoints the Credit Manager his/her agent and instructs him/her to take actions provided
by the Financial Documents, including issue of Sureties and Guarantees, for, on behalf of and at the expense of such Financing Party. At the request of the Credit Manager each Financing Party (except for the Creditor performing the functions of the
Credit Manager) undertakes to issue to the Credit Manager a power of attorney which, in the reasonable opinion of the Credit Manager, is required by the legislation and/or the court of law to allow the Credit Manager to exercise the rights and
perform the obligations under this Agreement. 

  

	 	(b)	 The Parties hereby agree that until the powers of the Credit Manager delegated to him/her according to this
Agreement are terminated, or until the circumstances provided by para.20.1(k)of Clause 20.1 (Events of Default) arise, or (i) with reference to RCB Bank Ltd. and to any Creditors of the VTB Group – any bankruptcy procedures provided by the
applicable legislation on bankruptcy concerning any Obligor are commenced; and (ii) with reference to all other Creditors – the court of law initiates any insolvency proceedings provided by the applicable legislation on bankruptcy
concerning any Obligor (hereinafter referred to in each case as the Circumstances), the Creditors may not independently exercise their rights and perform the obligations of Creditors delegated to the Credit Manager according to this
Agreement. In case any of the specified Circumstances occur, any Creditor shall have the right to declare his/her unilateral withdrawal from the agency contract with the Credit Manager (hereinafter referred to as the Declaring Creditor) by
giving adequate notice to the Credit Manager. The Declaring Creditor shall have the right to independently exercise his/her rights and perform the obligations of the Creditor in full scope from the moment the Credit Manager receives such notice of
withdrawal. For the avoidance of doubt, termination of the agency contract with the Declaring Creditor shall not entail termination of the powers of the Credit Manager delegated to it by any other Creditors, nor the powers of the Pledge Manager
delegated to it by all Creditors under this Agreement. 

  

	 	(c)	 For the avoidance of doubt, the Parties confirm that the Creditor performing functions of the Credit Manager
shall have the same rights and obligations under the Financial Documents as any other Creditor, and shall have the right to exercise these rights, including the right to vote at decision making, and to perform obligations as though he/she were not
the Credit Manager. 

  

	 	(d)	 The Credit Manager’s performance of his/her obligations under the Agreement does not prevent the Credit
Manager performing any banking transactions with any member of the Mechel Group, including maintenance of bank accounts, extending of credits and attraction of deposits. 

 

	 	(e)	 Without prejudice to the provisions of Clause 12.3 (Remuneration of the Credit Manager and the Pledge
Manager), in case the indemnity received from the Obligors does not cover the costs or losses incurred by the Credit Manager due to his/her performing the functions of the Credit Manager in accordance with the terms of the Financial Documents,
the Credit Manager shall have the right to make a claim against the Creditors (except for the Creditor performing the functions of the Credit Manager) and each Creditor (except for the Creditor performing the functions of the Credit Manager)
undertakes within ten (10) Business Days after the claim of the Credit Manager is received to indemnify according to the Proportional Share of the Creditor any documented costs or losses incurred by the Credit Manager (except for the instances of
the Credit Manager’s gross negligence or intentional wrongful acts) in connection with his/her performing the functions of the Credit Manager in accordance with the terms of the Financial Documents, to the extent not covered by the indemnity
received from any Obligor. 

  
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	 	(f)	 The Credit Manager shall not bear responsibility to the Creditors for his/her actions (omissions) performed
following the Decision of the Majority of Creditors or the Decision of all Creditors. 

  

	 	(g)	 In case the provisions of this Agreement do not require the Decision of the Majority of Creditors or the
Decision of all Creditors, the Credit Manager shall act (or abstain from acting) at own discretion with the best interests of the Creditors borne in mind. 

  

	 	(h)	 In case the Credit Manager exceeds the limits of his/her authority or takes action in breach of the conditions
provided for the exercise of his/her powers, the Creditor shall have the right to claim losses from the Credit Manager as provided for by the Law on syndicated credits and other applicable legislation. 

 

	23.3	 Obligations of the Credit Manager 

 

	 	(a)	 In view of para. (b) below, each Financing Party (except for the Credit Manager) shall instruct the Credit
Manager, and the Credit Manager agrees to take the following actions: 

  

	 	(i)	 to receive onto the Credit Manager’s Account any payments due to the Financing Parties from the Obligors
under this Agreement, to keep account of the money credited under this Agreement and to distribute the amounts received from the Obligors between the corresponding Financing Parties in accordance with the terms of this Agreement;

  

	 	(ii)	 to receive onto the Credit Manager’s Account any credit amounts from the Creditors, to transfer the credit
amounts received from the Creditors to the Borrower in accordance with the terms of this Agreement and to keep account of all money extended to the Borrower by each Creditor; 

 

	 	(iii)	 to notify the Borrower and the Creditors on the interest rate for each Interest Period; 

 

	 	(iv)	 to sign for and on behalf of all Financing Parties any amendments of this Agreement on the terms and conditions
agreed in the Decision of the Majority of Creditors or in the Decision of all Creditors, depending on the character of the relevant amendments; 

  

	 	(v)	 to report to the Creditors on the Borrower’s observance (or
non-observance) of the terms provided by this Agreement as a condition for making a Disbursement request; 

  

	 	(vi)	 to forward to the corresponding Party the original or a copy of any document received by the Credit Manager
from any other Party for the transfer to such Party, provided that the Credit Manager is not obliged to study or check the correctness, accuracy or completeness of such document; 

  
 103 

	 	(vii)	 to notify the Financing Parties on receipt of a message from any Party containing description of any event or
circumstance and the statement that such event or circumstance is a Default on Obligations; 

  

	 	(viii)	 to organize decision making by the Majority of Creditors or all Creditors at his/her own initiative or at the
request of the Majority of Creditors; 

  

	 	(ix)	 to keep a register of all Creditors and other Parties (indicating the addresses, contact data of all Creditors
for each moment of time and the Proportional Share of each Creditor) and to give a copy of such register for information purposes at the request of any Party; 

 

	 	(x)	 to notify the Creditors on non-payment by any Obligor of any amount of
Outstanding credit, interest, commission or other amounts due to any Financing Party (except for the Credit Manager or Pledge Manager) under Financial Documents; 

 

	 	(xi)	 in case of Market disorganization in the opinion of the Credit Manager or the Borrower, to carry out
negotiations with the Borrower to modify this Agreement; 

  

	 	(xii)	 in case of termination of the powers of the Credit Manager to transfer to the New Credit Manager (as specified
in para.23.4(c) of Clause 23.4 (Termination of the powers of the Credit manager ), all documents received by the Credit Manager from the Parties or created by the Credit Manager in the course of the performance of his/her obligations;

  

	 	(xiii)	 in case of an Event of Default, following the Decision of the Majority of Creditors to demand from the Borrower
immediate early repayment of the Outstanding credit or any part thereof, including the accrued interest, commissions and any other amounts due to the Financing Parties under the Financial Documents; 

 

	 	(xiv)	 in case of an Event of Default to report to the Pledge Manager the size of the indebtedness of the Borrower
under this Agreement as of the corresponding date and forward to him/her the documents required for making a claim against the Obligor and levying of execution on the basis of the Collateral Agreements; and 

 

	 	(xv)	 to take all other actions (or abstain from actions) as provided by this Agreement and other Financial Documents
or necessary for the Creditors to exercise their rights under this Agreement or other Financial Documents following the relevant Decision of the Majority of Creditors or all Creditors, as the case may be. 

 

	 	(b)	 The Credit Manager may not exercise any rights and powers given according to para. 23.3(a) of Clause 23.3
(Obligations of the Credit manager ) in case the exercise of such rights and powers in accordance with the terms of this Agreement requires the Decision of the Majority of Creditors or all Creditors, and the Credit Manager has
not received such a Decision of the Majority of Creditors or all Creditors in the order provided by this Agreement. 

  

	 	(c)	 The content of other additional powers of the Credit Manager and the procedure to exercise them are determined
by the Decision of the Majority of Creditors. The Credit Manager shall promptly notify the Borrower on the content of such Decision and additional powers. 

  

	23.4	 Termination of the powers of the Credit Manager  

 

	 	(a)	 The Credit Manager has the right, by giving a no less than thirty (30) Business Days notice to the other
Financing Parties and the Obligors, to discontinue the performance of the duties of the Credit Manager. Following the Decision of the Majority of Creditors, the Creditors can terminate the powers of the Credit Manager. 

  
 104 

	 	(b)	 In case of recall of the banking license of the Credit Manager (i) the powers of the Credit Manager shall
be terminated automatically from the date of recall of the banking license, and (ii) the Credit Manager or any Creditor informed on the recall of the banking license of the Credit Manager shall notify the other Parties thereof (hereinafter
referred to as the Notice of license recall) within the Business Day following the day on which the Credit Manager or such Creditor receives the information on the recall of the banking license of the Credit Manager. 

 

	 	(c)	 In case the powers of the Credit Manager are terminated at the initiative of the Credit Manager or at the
initiative of the Creditors, the Creditors shall, following the Decision of the Majority of Creditors, appoint a new loan manager from among the Creditors (hereinafter referred to as the New Credit Manager), and each Financing Party and the
Obligors hereby confirm their consent to such possible appointment. In their Decision the Creditors shall determine the date of termination of the powers of the Credit Manager and the procedure of sending the notice of termination of the powers of
the Credit Manager to the other Parties (hereinafter referred to as the Powers termination notice). 

  

	 	(d)	 The Parties agree that the New Credit Manager shall become a party to this Agreement as the Credit Manager
following the Decision of the Majority of Creditors on appointing the New Credit Manager from the date of signing the agreement to introduce the relevant amendments into this Agreement, unless another date is provided by such Agreement (hereinafter
referred to as the Date of Joining of the New Credit Manager). After that any mention of the Credit Manager in this Agreement will refer to the New Credit Manager. 

 

	23.5	 Pledge Manager  

The parties agree that the Pledge Manager is the Financing Party, the status, rights and obligations of which are specified in Clause 21
(Loan Collateral). 
  

	24.	 PAYMENT MECHANISM 

 

	24.1	 Payments to the Credit Manager 

Unless otherwise expressly provided by this Agreement, on each date when any Obligor or Financing Party are to make any payment as defined by
the conditions of any Financial Document for the benefit of any Party, such Obligor or Creditor shall transfer the corresponding amount to the Account of the Credit Manager (unless otherwise follows from the context of the Financial Document) with
valuation as of the date of the fixed term of payment. All payments which are made by the Borrower under this Agreement should be transferred to the Account of the Credit Manager not later than on 20:00. The payments of the Borrower credited into
the Account of the Credit Manager after the specified time shall be considered received on the following Business Day. 
  

	24.2	 Distribution of money received by the Credit Manager 

 

	 	(a)	 The money received by the Credit Manager from any Obligor to perform his/her obligations to the Financing
Parties under the Financial Documents, and also that received from the Pledge Manager as a result of levying execution on the basis of Collateral Agreements shall be distributed between the Creditors according to the Proportional Share of each
Creditor. 

  

	 	(b)	 Each amount of money credited to the Account of the Credit Manager for another Party shall be remitted by the
Credit Manager not later than 11:00 AM of the following Business Day to the Party to whom this amount of money was intended, to the account the particulars of which such Party can make known to the Credit Manager not later than five
(5) Business Days prior to the payment date. The Credit Manager shall remit the amount to the corresponding Party after he/she makes sure that he/she has received the necessary amount in full. 

  
 105 

	24.3	 Partial payments 

 

	 	(a)	 If the Credit Manager receives an amount insufficient for full repayment of all amounts due and payable by the
Obligor under the terms of the Financial Documents as of the corresponding moment, the Credit Manager shall apply such amount to repay the obligations of such Obligor under the Financial Documents in the following order of priority, unless a
different order is provided by the legislation: 

  

	 	(i)	 First, to indemnify the Financing Parties for the expenses incurred in connection with enforcement of
their claim against the Obligor; 

  

	 	(ii)	 Second, to pay the interest accrued on the Outstanding loan; 

 

	 	(iii)	 Third, to repay the amount of the Outstanding loan due as of the corresponding date;

  

	 	(iv)	 Fourth, to pay the compensation and commissions due to the Credit Manager and/or Pledge Manager;

  

	 	(v)	 Fifth, to pay any penalties accrued; and 

 

	 	(vi)	 Sixth, to pay any other amounts due from the Obligor under the terms of the Financial Documents.

  

	 	(b)	 Subject to the legislation requirements the Credit Manager can, following the Decision of the Majority of
Creditors, change the order of priority stated in para. (iv)-(a)(vi) above. 

  

	24.4	 Payments bypassing the Credit Manager 

The Obligor’s transfer of any money towards the payments due to the Financing Party under the Agreement bypassing the Account of the
Credit Manager shall not be proper performance by the Obligor of his/her obligations under this Agreement. When the Creditor receives any payment due to him/her under this Agreement directly from the Obligor (instead of from the Credit Manager),
such Creditor shall remit the amount received from the Obligor to the Account of the Credit Manager on the same Business Day for its distribution between all Financing Parties according to their Proportional Share in the order provided by Clause
24.3 (Partial payments). After that the Obligor will be considered to have performed his/her payment obligations under this Agreement only regarding the amount received by all Financing Parties from the Credit Manager according to the
provisions of this Clause. 
  

	24.5	 Prohibition of offset by the Obligors 

The Obligor shall make any payments under the Financial Documents without offset of any similar counterclaims which the Obligor may have
against any Financing Party. 
  

	24.6	 Currency of payment 

Subject to the provisions of Clause 24.7 (Currency restriction) below, the Obligor shall make all payments under this Agreement in Euro
and Rubles, accordingly (hereinafter referred to as the Currency of the Agreement), except for the indemnity to the Financing Parties of the costs incurred in connection with the Agreement which shall be paid by the Obligor in the same
currency in which they were incurred. The payment obligations of the Obligor shall be considered duly performed only if the corresponding amounts are received by the Credit Manager in the relevant Currency of the Agreement. If any amounts under this
Agreement are received towards the payment of the obligations of the Obligor in any currency other than the relevant Currency of the Agreement, and the Credit Manager converts the amount received into the Currency of the Agreement, the Obligor shall

  
 106 

 
compensate to the Credit Manager the expenses connected with the conversion (at the internal rate of exchange of the Credit Manager) of the amount received into the relevant Currency of the
Agreement , and also compensate the difference between the amount due from the Obligor in the relevant Currency of the Agreement and the amount received by the Credit Manager as a result of converting the money received from the Obligor into the
relevant Currency of the Agreement. 
  

	24.7	 Currency restriction 

 

	 	(a)	 Should any Currency restriction arise during the term of the Agreement the Credit Manager can, not later than
one (1) Business Day before the date due for the performance of any payment obligation in favour of the Financing Parties under Financial Documents, send to the Borrower a written notice according to which from the moment such notice is
received the Borrower shall perform the corresponding obligation under Financial Documents within the time limits provided by the Agreement not in Euro, but in Rubles and/or any other currency as agreed with the Borrower (and shall ensure such
performance by the Obligors). 

  

	 	(b)	 The Notice of the Credit Manager can be sent both concerning some liabilities, and all obligations of the
Obligors under the Financial Documents. 

  

	 	(c)	 In case any Currency Restriction arises and no abovementioned notice of the Credit Manager is received before
the maturity date of the corresponding obligation, the Borrower shall have the right, as agreed with the Credit Manager, to perform the corresponding obligation under Financial Documents in Rubles and/or any other currency as agreed with the Credit
Manager. 

  

	 	(d)	 The amount payable in Rubles will be determined as the ruble equivalent of the corresponding obligation amount
in Euro calculated based on the following exchange rate: the official Ruble to Euro exchange rate expressed as the number of Rubles per one Euro for payments on the next Business Day announced by Moscow Exchange PJSC (MOEX) on moex.com/en/fixing as
MOEX EUR/RUB FX Fixing at about 12 hours and 35 minutes (12:35 p.m.) Moscow time on the relevant date on which the payment should be made (the “MOEX exchange rate”). If MOEX exchange rate is not published, the exchange rate shall be
determined as the official Ruble to Euro exchange rate expressed as the number of Rubles per one Euro established by the Bank of Russia on the corresponding payment date under the Financial Documents for next Business Day settlements.

  

	 	(e)	 For the avoidance of doubt, the terms and conditions specified in this clause of the Agreement are not governed
by Article 414 of the Civil Code, and the security for the performance of obligations under this Agreement shall remain fully effective and valid. 

  

	24.8	 Maturity 

If any Financial Document does not specify the maturity date of any payment, such payment shall become due and payable by the Obligor within
five (5) Business Days after receipt from the Credit Manager of the claim made by the corresponding Financing Party. 
  

	25.	 NOTICES 

  

	25.1	 Written form 

  

	 	(a)	 Any messages exchanged by the Parties under the Financial Documents shall be executed in writing and sent by
courier, by mail, return receipt requested, by fax or, in the instances specified in the corresponding Financial Document, by e-mail. 

 

	 	(b)	 At that a copy of the message sent to any Obligor shall be sent to the address of the Borrower by e-mail corpfin@mechel.com and eshaposhnikova@mechel.ru, and also by courier or by 

  
 107 

	 	mail, return receipt requested, to PJSC Mechel. The Borrower shall accept full liability if sending a notice/message by e-mail results in divulgence of confidential information or
unauthorized receipt of such information by any person and the Borrower shall not have the right to file any grievances against the Financing Parties in this case. 

 

	25.2	 Addresses 

  

	 	(a)	 Subject to the exceptions specified below, the contact data of each Party for all messages in connection with
this Agreement shall mean the data which such Party has given to the Credit Manager for this purpose. 

  

	 	(b)	 Contact data of the Borrower: 

Public Joint-Stock Company Chelyabinsk Metallurgical Plant 

Postal address: 454047, Russia, Chelyabinsk, 2nd Paveletskaya str., 14 

E-mail: corpfin@mechel.com; eshaposhnikova@mechel.ru 

Attn.: E.V. Shaposhnikova, N.R. Galeeva 
  

	 	(c)	 Contact data of the Credit Manager: 

VTB Bank (public joint-stock company) 

Postal address: bld. 1, 43 Vorontsovskaya Street, Moscow, 109147 

Telex: 412362 BFTR RU 

Telephone: (495) 785-50-19 

Fax: (495) 737-65-42 

E-mail: loanadmin@msk.vtb.ru, PolikarpovDI@msk.vtb.ru; snovogilova@msk.vtb.ru 

Attn.: Loans Administration – Dmitriy Polikarpov 
  

	 	(d)	 Contact data of the Pledge Manager: 

VTB Bank (public joint-stock company) 

Postal address: bld. 1, 43 Vorontsovskaya Street, Moscow, 109147 

Telex: 412362 BFTR RU 

Telephone: (495) 785-50-19 

Fax: (495) 737-65-42 

E-mail: loanadmin@msk.vtb.ru, PolikarpovDI@msk.vtb.ru; snovogilova@msk.vtb.ru 

Attn.: Loans Administration – Dmitriy Polikarpov 
  

	 	(e)	 Each Creditor shall give his/her contact data to the Credit Manager who will provide them to any other Party at
its request. 

  
 108 

	 	(f)	 Any Party shall have the right to change its contact data, giving a due prior notice to the Credit Manager not
less than five (5) Business Days in advance. The Credit Manager shall notify all the other Parties on the change of the contact data. 

  

	 	(g)	 If any Party specifies a particular business unit or office holder as the addressee of its message, the message
will not be considered sent if such business unit or office holder are not indicated as the addressees thereof. 

  

	25.3	 Delivery of notices 

 

	 	(a)	 Any message or document sent by one person to another in connection with Financial Documents shall be
considered received: 

  

	 	(i)	 if sent by fax or e-mail – after their receipt in a legible form;

  

	 	(ii)	 if sent by courier – at delivery to the person authorized to receive correspondence at the relevant
address; or 

  

	 	(iii)	 if sent by mail – at delivery to the relevant address or ten (10) Business Days after the postal item
is put in the mail, return receipt requested, whatever comes earlier. 

  

	 	(b)	 All notices sent by the Obligor or to the Obligor shall be forwarded via the Credit Manager.

  

	25.4	 Language 

Any notice or message sent by any Party in connection with any Financial Document shall be drawn in Russian. For the avoidance of doubt, the
text in Russian can be accompanied by its translation into another language, the text in Russian prevailing. 
  

	26.	 SEVERABILITY 

If any term or condition of this Agreement is or becomes illegal, invalid or unenforceable, it will not affect the legality, validity or
enforceability of any other provision hereof. 
  

	27.	 MODIFICATION OF THE AGREEMENT AND THE CREDITORS’ WAIVER 

 

	 	(a)	 Any condition of this Agreement can be modified by a written agreement signed by the Borrower and the Credit
Manager acting according to the Decision of the Majority of Creditors, except as specified below in paragraphs (b) and (c). 

  

	 	(b)	 In view of the provisions of paragraph (c) below, the terms of this Agreement pertaining to:

  

	 	(i)	 definition of the term “Majority of Creditors” in Clause 1 (Definitions);

  

	 	(ii)	 deferred payment of any amount under Financial Documents; 

 

	 	(iii)	 reduction of the Margin or any other amount due from the Obligor; 

 

	 	(iv)	 increase of any Available Facility or the Total Available Facility or extension of the Drawdown Period or
change of the Original Final Repayment Date or the Final Repayment Date; 

  

	 	(v)	 any provision of the Agreement directly necessitating the consent of all Creditors; 

 

	 	(vi)	 provisions of Clause 22 (Change of the Parties) and this Clause 27; 

 

	 	(vii)	 provisions of Clause 19 (Accounts); 

 

	 	(viii)	 change of the Currency of the Agreement, 

may be modified by written agreements signed by the Borrower and the Credit Manager, accordingly, provided the Credit Manager obtains the
Decision of all Creditors. 
  

	 	(c)	 Unilateral increase of the interest rate by the Creditors according to Clause 9.4 (Interest rate revision by
Creditors) may be made on the basis of the Decision of the Majority of Creditors. 

  

	 	(d)	 No Essential change of circumstances described in Article 451 of the Civil Code can form the basis for
modification or termination of this Agreement at the initiative of the Obligors. 

  

	 	(e)	 Unless otherwise provided herein, the Creditors shall have the right to waive their rights under any Financial
Document by a Decision taken by the Majority of Creditors. 

  
 109 

	28.	 RESCISSION OF THE AGREEMENT 

Pursuant to Article 450.1 of the Civil Code the Parties cannot rescind this Agreement save as directly established in other Articles of this
Agreement. For the avoidance of doubt, the provisions of Article 10 of the Law on syndicated credits stating the right of unilateral rescission of an agreement by one of the Creditors shall not apply to the relations of the Parties under this
Agreement. 
  

	29.	 CONFIDENTIALITY 

 

	29.1	 Confidential information 

Each Financing Party agrees to maintain confidentiality concerning any Confidential information and not to disclose it to any third parties,
except as specified in Clause 29.2 (Disclosure of Confidential information ). 
  

	29.2	 Disclosure of Confidential information  

Confidential information constituting a bank secret as defined by the law may not be disclosed. Any Financing party can disclose Confidential
information not constituting a bank secret: 
  

	 	(a)	 to its affiliated persons, correspondent banks, professional advisers and auditors if the person to whom such
Confidential information is provided is informed in writing on its confidential character; the necessity for such informing is absent if its receiver has to observe confidentiality concerning such information by virtue of his/her professional
obligations; 

  

	 	(b)	 to any persons: 

  

	 	(i)	 to whom the Financing Party assigns (or intends to assign) its any rights and/or obligations under Financial
Documents or who can become the new Credit Manager or new Pledge Manager and, in each case, also to professional advisers of the specified persons provided that such persons (except for professional advisers having to observe confidentiality
concerning such information by virtue of their professional obligations) assume liability for maintaining confidentiality of the Confidential information according to the terms and conditions provided by this Agreement; 

 

	 	(ii)	 with whom the Financing Party concludes an agreement of participation in the Credit or another transaction the
payments under which can be effected with reference to any Financial Documents and/or to the Obligors and his/her professional advisers, provided that such persons (except for professional advisers having to observe

  
 110 

	 	
confidentiality concerning such information by virtue of their professional obligations) assume liability for maintaining confidentiality of the Confidential information according to the terms
and conditions provided by this Agreement; 

  

	 	(iii)	 specified in the request of the Office of Public Prosecutor, court of law, investigating bodies,
administrative, bank or currency supervision authorities (including the Central bank of the Russian Federation), tax authority or any other state structure, acting within their competence established by the legislation; 

 

	 	(iv)	 to whom the Financing Party assigns its rights of claim under the Financial Documents in pledge according to
Clause 22.6 (Securing the rights of Creditors) and to their professional advisers provided that such persons (except for professional advisers having to observe confidentiality concerning such information by virtue of their professional
obligations) assume liability for maintaining confidentiality of the Confidential information according to the terms and conditions provided by this Agreement; 

 

	 	(v)	 who are a Party; or 

  

	 	(vi)	 with the consent of the Borrower; 

 

	 	(c)	 to any rating agency (including its professional advisers) for assignment of the rating to the Financial
Documents and/or Obligors, if the rating agency to which such Confidential information is given is informed on its confidential character; and 

  

	 	(d)	 to any credit history bureau according to the Law on credit history bureaus. 

 

	29.3	 Notice of disclosure 

 

	 	(a)	 Each of the Financing Parties agrees to inform the Borrower on the circumstances of disclosure of Confidential
information according to para. 29.2(b)(iii) of Clause 29.2 (Disclosure of Confidential information ), except when such information is disclosed to a state authority within the framework of its regular supervising or regulating functions.

  

	 	(b)	 The Creditors hereby inform the Borrower that the data on the Borrower and this Agreement, specified in Article
4 of the Law on credit histories will be transferred to the corresponding credit histories bureau according to the Law on credit histories. 

  

	29.4	 Obligations of the Obligors 

The Borrower shall (and shall procure that each other Liable Party shall) keep confidential all the terms and conditions of the Financial
Documents (and shall ensure similar confidentiality being kept by each Obligor), except for the disclosure of such information: 
  

	 	(a)	 to the bank through which settlements under this Agreement are performed; 

 

	 	(b)	 to the shareholders/participants of the Borrower; 

 

	 	(c)	 at the request of the Office of Public Prosecutor, court of law, investigating bodies, administrative, bank or
currency supervision authorities, tax authority or any other state structure, acting within their competence established by the legislation; 

  

	 	(d)	 as expressly provided for by the legislation or other applicable legislation (the Liable Parties’
obligation to protect the confidential information, imposed on the Liable Parties under this Agreement, shall not apply to publicly available information and to the information that

  
 111 

	 	
becomes known to third parties through no fault of the Liable Parties), or where such disclosure is made to the Liable Parties’ affiliates, auditors or consultants, financial institutions
and rating agencies in the course of discharge of their professional duties to the relevant the Liable Party, and the confidentiality obligations specified in this clause, including signing of a confidentiality agreement with the relevant Liable
Party, shall apply to the persons who the information was disclosed to, except for stock exchanges, where Borrower’s shares are traded and /or PJSC Mechel (including NYSE, Moscow Stock Exchange); or 

 

	 	(e)	 with the consent of the Credit Manager. 

 

	29.5	 Continuing obligations 

The provisions stated in Clause 29 (Confidentiality) hereof will continue to be legally binding for each Financing Party for twelve
(12) months after the earlier of the following dates: 
  

	 	(a)	 date on which all amounts due and payable by the Obligors under this Agreement are completely paid; and

  

	 	(b)	 date on which such Financing Party otherwise ceases to be a Financing Party. 

 

	30.	 APPLICABLE LAW 

This Agreement, and also the rights and obligations of the Parties arising from it shall be governed by the legislation of the Russian
Federation and interpreted according to it. 
  

	31.	 DISPUTE RESOLUTION 

 

	 	(a)	 In case of any dispute arising in connection with this Agreement, including interpretation of its provisions,
existence, validity or termination, the Party intending to apply to the court shall first make a claim against the Party having defaulted on its obligations in the order specified by this Article 31 (Dispute Resolution ).

  

	 	(b)	 The claim shall be outlined in a letter of claim signed by the head or another authorized representative of the
relevant Party. 

  

	 	(c)	 The letter of claim shall include demands of the Party; the circumstances that serve as the grounds for the
demands of the Party; other information necessary to settle the dispute. 

  

	 	(d)	 The Claim shall be sent by the methods specified by this Agreement to the address of the Party specified in
Clause 25.2 (Addresses). A copy of the letter of claim shall be sent by e-mail to corpfin@mechel.com not later than the date of sending the original. Each Financing Party intending to make a claim
against the Borrower according to this Clause 31 (Dispute Resolution ) shall notify the other Financing Parties on its intent (by sending the corresponding information to the Credit Manager). 

 

	 	(e)	 Regardless of whether a response to the letter of claim is received or not, the Party bringing the claim shall
be entitled, after expiry of ten (10) calendar days from the date of the actual sending of the letter of claim, to submit the dispute to the court. 

  

	 	(f)	 The disputes or differences arising out of this Agreement with respect to which the Parties failed to reach
agreement shall be resolved by the Moscow Arbitration Court in accordance with the current legislation of the Russian Federation. 

  
 112 

	32.	 CONTRACTUAL RECOGNITION OF FORCED RESTRUCTURING 

 

	 	(a)	 For the purposes of this Article: 

Forced Restructuring Action means exercising of any Write-off and Conversion Powers. 

Forced Restructuring Laws means, in the case of a Member State of the EEA, which has enacted or will at any time enact the provisions
of Article 55, Directive No. 2014/59/EC establishing the procedure for the rehabilitation and resolution of insolvency of credit institutions and investment funds, a relevant implementing law or regulation referred to in the then effective List of
European Laws on Forced Restructuring. 
 Competent Authority means any body that has the authority to exercise any Write-off and Conversion Powers. 
 List of European Laws on Forced Restructuring means the
document designated as such and published on a periodic basis by the Loan Market Association (or its successor). 
 Write-off and Conversion Powers means, in relation to any Forced Restructuring Law referred to in the then effective List of European Laws on Forced Restructuring, the powers listed as such in the List of
European Laws on Forced Restructuring in connection with the relevant Forced Restructuring Law. 
 EEA Member State means any member
state of the European Union, Iceland, Liechtenstein and Norway. 
  

	 	(b)	 Notwithstanding any other provisions of the Financial Documents or any other contracts, agreements or
arrangements between the Parties, each Party agrees and acknowledges that, in respect of any financial obligation of any Finance Party to any other party arising out of or in connection with the Financial Documents, the relevant Competent Authority
may apply a Forced Restructuring Action, and also agrees to and acknowledges the binding nature of: 

  

	 	(i)	 any Action for Forced Restructuring of any relevant financial obligation, including: 

 

	 	(A)	 complete or partial reduction of principal or outstanding debt (including any accrued but unpaid interest) for
any relevant financial obligation; 

  

	 	(B)	 conversion of all or part of the relevant financial obligation into shares or other equity instruments that may
be issued for the benefit of or transferred to the relevant Party; and 

  

	 	(C)	 cancellation of any relevant financial obligation; and 

 

	 	(ii)	 making amendments to the terms of the Financial Documents dictated by the need to legitimize any Action for
Forced Restructuring of any relevant financial obligation. 

  

	33.	 EXECUTION 

This Agreement is executed by the Parties in three (3) original copies, having equal legal force, all of which shall constitute one and
the same instrument. 
 This Agreement is executed on the date first above written. 

  
 113 

 APPENDIX 1 

LIST OF INITIAL CREDITORS AND AVAILABLE FACILITY FOR TRANCHE A, TRANCHE B, TRANCHE C AND TRANCHE D 

 

									
	 Initial Creditor
	  	 Tranche A
	  	 Tranche B
	  	Tranche C	  	Tranche D
	VTB Bank (public joint-stock company)	  	Euro equivalent of nine hundred and seven million six hundred and fifty thousand US Dollars (USD 907,650,000)	  	Euro equivalent of thirty-four million three hundred and fifty thousand US Dollars (USD 34,350,000)	  	sixty billion four
hundred million
(60,400,000,000)
Rubles	  	six billion five
hundred
million
(6,500,000,000)
Rubles
					
	VTB Bank (Europe) SE	  	Euro equivalent of ninety-six million three hundred and fifty thousand US Dollars (USD 96,350,000)	  	Euro equivalent of three million six hundred and fifty thousand US Dollars (USD 3,650,000)	  	0	  	0
	The Total Available Facility cannot be more than nine hundred and fifty million Euros (EUR 950,000,000) and sixty six billion nine hundred million (66,900,000,000) Rubles.

  
 114 

 APPENDIX 2 

REPAYMENT SCHEDULE 
 Part 1.
Euro-Denominated Outstanding Credit 
  

					
	Repayment Date	  	 Repayment Instalment

(Euro)
	 
	 6 May 2022
	  	 	3,041,848	 
	 6 June 2022
	  	 	3,041,848	 
	 6 July 2022
	  	 	3,041,848	 
	 6 August 2022
	  	 	3,041,848	 
	 6 September 2022
	  	 	3,041,848	 
	 6 October 2022
	  	 	3,041,848	 
	 6 November 2022
	  	 	3,041,848	 
	 6 December 2022
	  	 	3,041,848	 
	 6 January 2023
	  	 	3,041,848	 
	 6 February 2023
	  	 	3,041,848	 
	 6 March 2023
	  	 	3,041,848	 
	 6 April 2023
	  	 	8,139,515	 
	 6 May 2023
	  	 	8,139,515	 
	 6 June 2023
	  	 	8,139,515	 
	 6 July 2023
	  	 	8,139,515	 
	 6 August 2023
	  	 	8,139,515	 
	 6 September 2023
	  	 	8,139,515	 
	 6 October 2023
	  	 	8,139,515	 
	 6 November 2023
	  	 	8,139,515	 
	 6 December 2023
	  	 	8,139,515	 
	 6 January 2024
	  	 	8,139,515	 
	 6 February 2024
	  	 	8,139,515	 
	 6 March 2024
	  	 	8,139,515	 
	 6 April 2024
	  	 	10,016,776	 
	 6 May 2024
	  	 	10,016,776	 
	 6 June 2024
	  	 	10,016,776	 
	 6 July 2024
	  	 	10,016,776	 
	 6 August 2024
	  	 	10,016,776	 

  
 115 

					
	 6 September 2024
	  	 	10,016,776	 
	 6 October 2024
	  	 	10,016,776	 
	 6 November 2024
	  	 	10,016,776	 
	 6 December 2024
	  	 	10,016,776	 
	 6 January 2025
	  	 	10,016,776	 
	 6 February 2025
	  	 	10,016,776	 
	 6 March 2025
	  	 	10,016,776	 
	 6 April 2025
	  	 	13,285,309	 
	 6 May 2025
	  	 	13,285,309	 
	 6 June 2025
	  	 	13,285,309	 
	 6 July 2025
	  	 	13,285,309	 
	 6 August 2025
	  	 	13,285,309	 
	 6 September 2025
	  	 	13,285,309	 
	 6 October 2025
	  	 	13,285,309	 
	 6 November 2025
	  	 	13,285,309	 
	 6 December 2025
	  	 	13,285,309	 
	 6 January 2026
	  	 	13,285,309	 
	 6 February 2026
	  	 	13,285,309	 
	 6 March 2026
	  	 	13,285,309	 
	 6 April 2026
	  	 	18,079,542	 
	 6 May 2026
	  	 	18,079,542	 
	 6 June 2026
	  	 	18,079,542	 
	 6 July 2026
	  	 	18,079,542	 
	 6 August 2026
	  	 	18,079,542	 
	 6 September 2026
	  	 	18,079,542	 
	 6 October 2026
	  	 	18,079,542	 
	 6 November 2026
	  	 	18,079,542	 
	 6 December 2026
	  	 	18,079,542	 
	 6 January 2027
	  	 	18,079,542	 
	 6 February 2027
	  	 	18,079,542	 
	 Original Final Repayment Date
	  	 
 
	Outstanding balance of Euro-Denominated

Outstanding Credit
	
  

  
 116 

 Part 2. Euro-Denominated Outstanding Credit (extension) 

 

					
	Repayment Date	  	 Repayment Instalment

(Euro)
	 
	 Original Final Repayment Date
	  	 	18,079,542	 
	 6 April2027
	  	 	7,472,786	 
	 6 May 2027
	  	 	7,472,786	 
	 6 June 2027
	  	 	7,472,786	 
	 6 July 2027
	  	 	7,472,786	 
	 6 August 2027
	  	 	7,472,786	 
	 6 September 2027
	  	 	7,472,786	 
	 6 October 2027
	  	 	7,472,786	 
	 6 November 2027
	  	 	7,472,786	 
	 6 December 2027
	  	 	7,472,786	 
	 6 January 2028
	  	 	7,472,786	 
	 6 February 2028
	  	 	7,472,786	 
	 6 March 2028
	  	 	7,472,786	 
	 6 April 2028
	  	 	7,472,786	 
	 6 May 2028
	  	 	7,472,786	 
	 6 June 2028
	  	 	7,472,786	 
	 6 July 2028
	  	 	7,472,786	 
	 6 August 2028
	  	 	7,472,786	 
	 6 September 2028
	  	 	7,472,786	 
	 6 October 2028
	  	 	7,472,786	 
	 6 November 2028
	  	 	7,472,786	 
	 6 December 2028
	  	 	7,472,786	 
	 6 January 2029
	  	 	7,472,786	 
	 6 February 2029
	  	 	7,472,786	 
	 6 March 2029
	  	 	7,472,786	 
	 6 April 2029
	  	 	7,472,786	 
	 6 May 2029
	  	 	7,472,786	 
	 6 June 2029
	  	 	7,472,786	 
	 6 July 2029
	  	 	7,472,786	 
	 6 August 2029
	  	 	7,472,786	 

  
 117 

					
	 6 September 2029
	  	 	7,472,786	 
	 6 October 2029
	  	 	7,472,786	 
	 6 November 2029
	  	 	7,472,786	 
	 6 December 2029
	  	 	7,472,786	 
	 6 January 2030
	  	 	7,472,786	 
	 6 February 2030
	  	 	7,472,786	 
	 Final Repayment Date
	  	 
	Outstanding balance of Euro-Denominated
Outstanding Credit	 
 

  
 118 

 Part 3. Ruble-Denominated Outstanding Credit 

 

					
	Repayment Date	  	% of Ruble-Denominated Outstanding Credit	 
	 6 May 2022
	  	 	0.34	% 
	 6 June 2022
	  	 	0.34	% 
	 6 July 2022
	  	 	0.34	% 
	 6 August 2022
	  	 	0.34	% 
	 6 September 2022
	  	 	0.34	% 
	 6 October 2022
	  	 	0.34	% 
	 6 November 2022
	  	 	0.34	% 
	 6 December 2022
	  	 	0.34	% 
	 6 January 2023
	  	 	0.34	% 
	 6 February 2023
	  	 	0.34	% 
	 6 March 2023
	  	 	0.34	% 
	 6 April 2023
	  	 	0.91	% 
	 6 May 2023
	  	 	0.91	% 
	 6 June 2023
	  	 	0.91	% 
	 6 July 2023
	  	 	0.91	% 
	 6 August 2023
	  	 	0.91	% 
	 6 September 2023
	  	 	0.91	% 
	 6 October 2023
	  	 	0.91	% 
	 6 November 2023
	  	 	0.91	% 
	 6 December 2023
	  	 	0.91	% 
	 6 January 2024
	  	 	0.91	% 
	 6 February 2024
	  	 	0.91	% 
	 6 March 2024
	  	 	0.91	% 
	 6 April 2024
	  	 	1.12	% 
	 6 May 2024
	  	 	1.12	% 
	 6 June 2024
	  	 	1.12	% 
	 6 July 2024
	  	 	1.12	% 
	 6 August 2024
	  	 	1.12	% 
	 6 September 2024
	  	 	1.12	% 
	 6 October 2024
	  	 	1.12	% 

  
 119 

					
	 6 November 2024
	  	 	1.12	% 
	 6 December 2024
	  	 	1.12	% 
	 6 January 2025
	  	 	1.12	% 
	 6 February 2025
	  	 	1.12	% 
	 6 March 2025
	  	 	1.12	% 
	 6 April 2025
	  	 	1.48	% 
	 6 May 2025
	  	 	1.48	% 
	 6 June 2025
	  	 	1.48	% 
	 6 July 2025
	  	 	1.48	% 
	 6 August 2025
	  	 	1.48	% 
	 6 September 2025
	  	 	1.48	% 
	 6 October 2025
	  	 	1.48	% 
	 6 November 2025
	  	 	1.48	% 
	 6 December 2025
	  	 	1.48	% 
	 6 January 2026
	  	 	1.48	% 
	 6 February 2026
	  	 	1.48	% 
	 6 March 2026
	  	 	1.48	% 
	 6 April 2026
	  	 	2.02	% 
	 6 May 2026
	  	 	2.02	% 
	 6 June 2026
	  	 	2.02	% 
	 6 July 2026
	  	 	2.02	% 
	 6 August 2026
	  	 	2.02	% 
	 6 September 2026
	  	 	2.02	% 
	 6 October 2026
	  	 	2.02	% 
	 6 November 2026
	  	 	2.02	% 
	 6 December 2026
	  	 	2.02	% 
	 6 January 2027
	  	 	2.02	% 
	 6 February 2027
	  	 	2.02	% 
	 Original Final Repayment Date
	  	 
	Outstanding balance of Ruble-Denominated
Outstanding Credit	 
 

  
 120 

 Part 4. Ruble-Denominated Outstanding Credit (extension) 

 

					
	Repayment Date	  	% of Ruble-Denominated Outstanding Credit	 
	 Original Final Repayment Date
	  	 	2.02	% 
	 6 April2027
	  	 	0.83	% 
	 6 May 2027
	  	 	0.83	% 
	 6 June 2027
	  	 	0.83	% 
	 6 July 2027
	  	 	0.83	% 
	 6 August 2027
	  	 	0.83	% 
	 6 September 2027
	  	 	0.83	% 
	 6 October 2027
	  	 	0.83	% 
	 6 November 2027
	  	 	0.83	% 
	 6 December 2027
	  	 	0.83	% 
	 6 January 2028
	  	 	0.83	% 
	 6 February 2028
	  	 	0.83	% 
	 6 March 2028
	  	 	0.83	% 
	 6 April 2028
	  	 	0.83	% 
	 6 May 2028
	  	 	0.83	% 
	 6 June 2028
	  	 	0.83	% 
	 6 July 2028
	  	 	0.83	% 
	 6 August 2028
	  	 	0.83	% 
	 6 September 2028
	  	 	0.83	% 
	 6 October 2028
	  	 	0.83	% 
	 6 November 2028
	  	 	0.83	% 
	 6 December 2028
	  	 	0.83	% 
	 6 January 2029
	  	 	0.83	% 
	 6 February 2029
	  	 	0.83	% 
	 6 March 2029
	  	 	0.83	% 
	 6 April 2029
	  	 	0.83	% 
	 6 May 2029
	  	 	0.83	% 
	 6 June 2029
	  	 	0.83	% 
	 6 July 2029
	  	 	0.83	% 
	 6 August 2029
	  	 	0.83	% 

  
 121 

					
	 6 September 2029
	  	 	0.83	% 
	 6 October 2029
	  	 	0.83	% 
	 6 November 2029
	  	 	0.83	% 
	 6 December 2029
	  	 	0.83	% 
	 6 January 2030
	  	 	0.83	% 
	 6 February 2030
	  	 	0.83	% 
	 Final Repayment Date
	  	 
	Outstanding balance of Ruble-Denominated
Outstanding Credit	 
 

  
 122 

 APPENDIX 3 

CONDITIONS PRECEDENT TO LOAN 

PART 1. TRANCHE A 
  

	1.	 Initial Financial Documents 

Each Financial Document, excluding the Agreement of Assignment of the Creditor’s rights (hereinafter referred to as the Initial
Financial Documents) duly entered into by each party thereto. 
  

	2.	 Buyback with Offer 

 

	2.1	 Documents by which the use by the Borrower of the Loan(s) for the purposes specified in this Agreement may be
determined, controlled and confirmed, including: 

  

	(a)	 Copies of the facility agent’s most recent confirmations received by PJSC Southern Kuzbass and JSHC
Yakutugol (including by e-mail), certified by the authorized person of the relevant Obligor, about the current composition of the creditors and the amount of their claims for each Existing PXF Credit
Agreement; 

  

	(b)	 Issue of an Offer; 

  

	(c)	 Documents confirming the conclusion by SSK of agreements to purchase participation in Existing PXF Credit
Agreements (for creditors that are banks and financial institutions with a rating higher than “BBB-” – acceptance of the Offer, for other creditors – acceptance of the Offer and transfer
certificates) for the amount specified in the Disbursement Request; 

  

	(d)	 Documents confirming the opening of SSK Accounts with the Credit Manager; 

 

	(e)	 Bank acceptance of the Borrower’s conversion request (or other confirmation of the exchange rate) from
Euros to Rubles in the amount specified in the Disbursement Request; 

  

	(f)	 Bank acceptance of SSK’s conversion request from Rubles to Dollars (the amount in Dollars shall be equal
to the amount of payment for purchasing participation in the Existing PXF Credit Agreements); 

  

	(g)	 Payment orders from the Borrower for the transfer of Rubles received as a result of conversion to SSK under a
loan agreement; 

  

	(h)	 Payment orders from SSK to pay for the purchase of participation in Existing PXF Credit Agreements for the
amount of such purchase; and 

  

	(i)	 Copies of intra-group loan agreements between the Borrower and SSK, certified by the Borrower, for the amount
not less than the amount specified in the Disbursement Request. 

  

	3.	 Buyback without Offer 

 

	3.1	 Documents by which the use by the Borrower of the Loan(s) for the purposes specified in this Agreement may be
determined, controlled and confirmed, including: 

  

	(a)	 Copies of the facility agent’s most recent confirmations received by PJSC Southern Kuzbass and JSHC
Yakutugol (including by e-mail), certified by the authorized person of the relevant Obligor, about the current composition of the creditors and the amount of their claims for each Existing PXF Credit
Agreement; 

  
 123 

	(b)	 Documents confirming the conclusion by SSK of agreements to purchase participation in Existing PXF Credit
Agreements (for creditors that are banks and financial institutions with a rating higher than “BBB-” – documents confirming the transaction (trade confirmations, debt purchase deed or other
document confirming the acquisition of participation rights in Existing PXF Loan Agreements, for other creditors – documents confirming the transaction (trade confirmations, debt purchase deed or other document confirming the acquisition of
participation rights in Existing PXF Loan Agreements and transfer certificates) for the amount specified in the Disbursement Request; 

  

	(c)	 Bank acceptance of the Borrower’s conversion request from Euros to Rubles in the amount specified in the
Disbursement Request; 

  

	(d)	 Bank acceptance of SSK’s conversion request from Rubles to Dollars (the amount in Dollars shall be equal
to the amount of payment for purchasing participation in the Existing PXF Credit Agreements); 

  

	(e)	 Payment orders from the Borrower for the transfer of Rubles received as a result of conversion to SSK under a
loan agreement; 

  

	(f)	 Payment orders from SSK to pay for the purchase of participation in Existing PXF Credit Agreements for the
amount of such purchase; 

  

	(g)	 If applicable, payment orders from SSC to pay for the purchase of the interest claim for the interest accrued
on the participation in the Existing PXF Loan Agreements for the amount of such accrued interest; 

  

	(h)	 Copies of intra-group loan agreements between the Borrower and SSK, certified by the Borrower, for the amount
not less than the amount specified in the Disbursement Request. 

  

	4.	 Repayment of loans under Existing PXF Credit Agreements 

 

	4.1	 Documents by which the use by the Borrower of the Loan(s) for the purposes specified in this Agreement may be
determined, controlled and confirmed, including: 

  

	(a)	 Copies of intra-group loan agreements certified by creditors between: 

 

	 	(i)	 the Borrower and Mechel Group companies; and 

 

	 	(ii)	 a Mechel Group company that received a loan from the Borrower (hereinafter “the Company”) and PJSC
Southern Kuzbass and JSHC Yakutugol 

 for an amount not less than the amount specified in the Disbursement Request; 

 

	(b)	 Opening of the Company’s accounts with the Credit Manager; 

 

	(c)	 Bank acceptance of the Borrower’s conversion request from Euros to Rubles in the amount specified in the
Disbursement Request; 

  

	(d)	 Payment orders from the Borrower for the transfer of Rubles received as a result of conversion to the Company
under a loan agreement; 

  

	(e)	 Payment orders from the Company for the transfer of Rubles received from the Borrower to PJSC Southern Kuzbass
and JSHC Yakutugol under a loan agreement; 

  

	(f)	 Bank acceptance of the conversion request from Rubles to Dollars received from PJSC Southern Kuzbass and JSHC
Yakutugol (the amount in Dollars shall be equal to the repayment amount under the Existing PXF Credit Agreements); 

  
 124 

	(g)	 Applications of PJSC Southern Kuzbass and JSHC Yakutugol to repay loans under Existing PXF Credit Agreements
from accounts opened with the Credit Manager in the amount not less than the amount specified in the Disbursement Request. 

  

	5.	 Required corporate documents for each Obligor established under the laws of the Russian Federation

  

	(a)	 A copy certified by an authorized person of the relevant Obligor or a notarized copy of the duly registered
statutory documents of each Obligor and all amendments and supplements thereto. 

  

	(b)	 Copies certified by an authorized person of the relevant Obligor or notarized copies of the certificates of
registration of the statutory documents of each Obligor and all amendments and supplements thereto, and for statutory documents and amendments and supplements approved after July 4, 2013 – copies certified by an authorized person of the
relevant Obligor or notarized copies of the records of the Unified State Register of Legal Entities on the registration of such statutory documents and all amendments and supplements thereto. 

 

	(c)	 A copy certified by an authorized person of the relevant Obligor or a notarized copy of the certificate of
state registration of each Obligor. 

  

	(d)	 A copy certified by an authorized person of the relevant Obligor or a notarized copy of the certificate for tax
registration with the Russian tax authority of each Obligor. 

  

	(e)	 The original, a notarized copy or an electronically signed copy of an extract from the Unified State Register
of Legal Entities issued by an authorized tax authority and containing up-to-date information on each Obligor. 

 

	(f)	 A copy certified by an authorized person of the relevant Obligor or a notarized copy of the decision of the
authorized management body of each Obligor: 

  

	 	(i)	 on the approval of the terms of the Initial Financial Documents to which the relevant Obligor is a party and
the transactions contemplated thereby, as well as any related transactions, including (where applicable) on the approval of a transaction as a major transaction and/or as a related party transaction (in the meaning attached to these terms by the
laws of the Russian Federation); 

  

	 	(ii)	 on authorizing a relevant person or persons as needed to sign the Initial Financial Documents to which the
relevant Obligor is a party, on behalf of the latter; and 

  

	 	(iii)	 on authorizing a relevant person or persons as needed to sign all the documents and notices (including, where
applicable, any Disbursement Requests) on behalf of the relevant Obligor, which must be signed by the relevant Obligor in accordance with or in connection with the Initial Financial Documents to which it is a party. 

 

	(g)	 Copies certified by an authorized person of the relevant Obligor or notarized copies of documents on the
appointment of the sole executive body of each Obligor. 

  

	(h)	 Copies certified by an authorized person of the relevant Obligor or notarized copies of all powers of attorney
relating to vesting the authorized persons of each Obligor with the authority necessary to sign the Initial Financial Documents, to which the corresponding Obligor is a party, or, as appropriate, to sign or send any documents or notices in
connection with any Initial Financial Documents. 

  

	(i)	 Copies certified by an authorized bank or notarized copies of the signature cards of each person authorized to
sign on behalf of each of the Obligors the Initial Financial Documents to which it is a party, or to sign or send any documents or notices in connection with any Initial Financial Documents. 

  
 125 

	(j)	 If applicable, copies certified by an authorized person of the relevant Obligor or notarized copies of all
licenses, approvals, consents, accounting and registration documents issued by the creditors’ bodies, government authorities or other authorities and required by each Obligor in connection with entering into, execution and enforcement of the
Initial Financial Documents to which the relevant Obligor is a party, as well as the transactions contemplated thereby. 

  

	(k)	 The original document signed by an authorized representative of each Obligor, confirming, inter alia, that:

  

	 	(i)	 each document (whether original or a copy) provided by each of the Obligors or on its behalf in accordance with
this Appendix is genuine, contains complete and up-to-date information, has full legal effect, has not been amended, cancelled, withdrawn or terminated and that, as of
the date not earlier than the date of this Agreement, no new documents have been issued in connection with the issues raised in the relevant document; 

  

	 	(ii)	 neither the Initial Financial Documents nor the transactions contemplated thereby, including any transactions
related thereto, are major transactions or related party transactions for the relevant Obligor, and they do not require any other internal approvals by the relevant Obligor (if applicable); the total value of transactions contemplated by the Initial
Financial Documents in relation to the book value of the assets of the relevant Obligor; 

  

	 	(iii)	 the Regulated Procurement Law does not apply to entering into the Initial Financial Documents by the relevant
Obligor. 

  

	6.	 Required corporate documents for the Guarantor 

 

	(a)	 A certified copy of the extract from the commercial register with respect to the Guarantor.

  

	(b)	 A certified copy of the Guarantor’s current articles of association. 

 

	(c)	 The resolution of the Guarantor’s Board to approve the terms of the Initial Financial Documents to which
the Guarantor is a party and containing a power of attorney to sign the relevant Initial Financial Documents. 

  

	(d)	 The resolution of the Guarantor’s shareholders to approve the terms of the Initial Financial Documents to
which the Guarantor is a party. 

  

	(e)	 The original document signed by an authorized representative of the Guarantor, containing, inter alia, specimen
signatures of the Guarantor’s authorized persons and the confirmation that the issue of the Guarantee will not violate any guarantee issue limits applicable to the Guarantor. 

 

	7.	 Required corporate documents for each Management Company 

 

	(a)	 A copy certified by an authorized person of the relevant Obligor or a notarized copy of the resolution of the
authorized management body of the Obligor to delegate the powers of the sole executive body of such Obligor to the Management Company. 

  

	(b)	 A copy certified by an authorized person of the relevant Obligor or a notarized copy of the management
agreement concluded between the Obligor and the Management Company in connection with the delegation of powers of the sole executive body to the Management Company. 

 

	(c)	 Where applicable, a copy certified by an authorized person of the relevant Obligor or a notarized copy of
(i) the permission from the Federal Antimonopoly Service of the Russian Federation on the delegation of powers of the sole executive body to the Management Company; or (ii) a copy of the notice sent to the Federal Antimonopoly Service of
the Russian Federation about the conclusion of the management agreement, along with confirmation of the receipt of such notice by the Federal Antimonopoly Service of the Russian Federation. 

  
 126 

	(d)	 Copies certified by an authorized person of the relevant Management Company or notarized copies of the
constituent documents of the Management Company and all amendments and supplements thereto, as well as its certificate of state registration and, as appropriate, certificates of registration or extracts of the entry made in the Unified State
Register of Legal Entities on the registration of such constituent documents and all amendments and supplements thereto. 

  

	(e)	 The original, a notarized copy or an electronically signed copy of an extract from the Unified State Register
of Legal Entities issued by an authorized tax authority and containing up-to-date information on the Management Company. 

 

	(f)	 Copies certified by an authorized person of the relevant Management Company or notarized copies of documents on
the appointment of the sole executive body of the Management Company. 

  

	8.	 Documents related to the finalization of the Agreements on Pledge of Shares (except for the Agreement on
Pledge of Shares of PJSC Urals Stampings Plant and the Agreement on Pledge of the Borrower’s Shares) 

  

	(a)	 An up-to-date statement of the
DEPO account of the relevant Pledgor in the Depositary, confirming its title to the shares pledged under each Agreement on Pledge of Shares (except for the Agreement on Pledge of Shares of PJSC Urals Stampings Plant and the Agreement on Pledge of
the Borrower’s Shares). 

  

	(b)	 The transfer to the Depositary of the original pledge order of the relevant Obligor ordering the Depositary to
register a pledge of shares to be set by the relevant Pledgor in accordance with each Agreement on Pledge of Shares (except for the Agreement on Pledge of Shares of PJSC Urals Stampings Plant and the Agreement on Pledge of the Borrower’s
Shares). 

  

	(c)	 A statement of the DEPO account of the respective Pledgor in the Depositary, confirming registration of the
pledge of shares for the benefit of the Pledge Manager as a pledgee in accordance with each Agreement on Pledge of Shares (except for the Agreement on Pledge of Shares of PJSC Urals Stampings Plant and the Agreement on Pledge of the Borrower’s
Shares). 

  

	9.	 Other documents and evidence 

 

	(a)	 A notarized translation of the Initial Financial Documents from Russian into English, and of the Security
Assignment of Claims from English into Russian. 

  

	(b)	 Evidence that all commission fees and documented expenses due and payable to the Financing Parties under any
Initial Financial Documents (in particular, the fees of the legal advisers of the Credit Manager related to the preparation and signing of the Initial Financial Documents) have been or will be paid by the first Drawdown Date. 

 

	(c)	 Evidence required by the Credit Manager to conduct KYC procedures. 

 

	(d)	 If applicable, any other authorizations or other documents, opinions or assurances, the necessity or
practicability of which in connection with entering into and execution of any Initial Financial Documents and the transactions contemplated thereby or enforcement of any Initial Financial Documents was communicated to each of the Obligors by the
Credit Manager. 

  

	(e)	 Before the date of the Agreement – the original consent of the Borrower and each Guarantor to the receipt
by the Financing Parties of the main part of the credit history of the Borrower and each Guarantor in accordance with the Law on Credit Histories. 

  
 127 

	(f)	 The originals or notarized copies of the following documents, in the form and substance required by law:

  

	 	(i)	 signature cards with specimen signatures of authorized persons and seal impressions of the Borrower, SSK and
other Mechel Group companies that will enter into intra-group loan agreements; 

  

	 	(ii)	 powers of attorney for persons who will sign Disbursement Requests (this requirement does not apply to persons
to whom this authority was granted in accordance with the Borrower’s Articles of Association, as well as to the persons signing this Agreement on behalf of the Borrower). 

 

	(g)	 The absence of restrictions on conducting the relevant transactions in the accounts of the Borrower, SSK and
other Mechel Group companies (including bank files, seizure of accounts, etc.) that will enter into intra-group loan agreements with regard to the Loan purposes. 

 

	(h)	 The Agreement on Reimbursement of Legal Expenses between VTB Bank (PJSC), VTB DC LLC, VTB Capital plc, Southern
Kuzbass PJSC and Yakutugol JSHC, duly signed by authorized persons on the part of Southern Kuzbass PJSC and Yakutugol JSHC. 

  

	10.	 Legal opinions 

The following legal opinions: 
  

	 	(a)	 a legal opinion prepared by Allen & Overy Legal Services, legal adviser to the Credit Manager on the
compliance of the Initial Financial Documents governed by Russian law, to Russian law; 

  

	 	(b)	 a legal opinion prepared by Allen & Overy Legal Services, legal advisor to the Credit Manager on the
compliance of the Initial Financial Documents governed by English law, to English law; 

  

	 	(c)	 a legal opinion prepared by Niederer Kraft Frey, legal adviser to the Credit Manager on the compliance of the
Initial Financial Documents to which the Guarantor is a party, to Swiss law, 

 each of which is prepared according to the
form provided to the Credit Manager prior to the signing of this Agreement and is addressed to the Financing Parties being such Parties as of the date of the relevant opinion. 

PART 2. TRANCHE B 
  

	1.	 The Borrower has made a disbursement under Tranche A to purchase participation in the Existing PXF Credit
Agreements within the Offer. 

  

	2.	 Documents acceptable to the Credit Manager by which the use by the Borrower of Tranche B for the purposes
specified in this Agreement may be determined, controlled and confirmed. 

 PART 3. TRANCHE C 

 

	(a)	 Documents evidencing the satisfaction of all conditions specified in paragraphs 1 – 6 of Schedule 2
(Conditions Subsequent) to Addendum 1. 

  

	(b)	 A copy, certified by the Borrower’s authorized person, of the loan agreements between:

  

	 	(i)	 the Borrower and Mechel PJSC; and 

  
 128 

	 	(ii)	 the Borrower and PJSC Southern Kuzbass, 

for the aggregate amount equal to or exceeding the amount specified in the relevant Disbursement Request and specifying that the purpose of
such loan is not restricted under this Agreement. 
  

	(c)	 An original copy of the prepayment application in relation to the full amount of each of Credit 1, Credit 2,
Credit 3 and Credit 4. 

  

	(d)	 An original copy of payment instructions to transfer the proceeds of the loan under the loan agreements
specified in paragraph 2 above, from the Borrower to Mechel PJSC and PJSC Southern Kuzbass, accordingly. 

  

	(e)	 An original copy of payment instructions of Mechel PJSC and PJSC Southern Kuzbass, respectively, to apply the
proceeds of the loans received from the Borrower under the loan agreements specified in paragraph 2 above, towards full prepayment of debt under Credit 1, Credit 2, Credit 3 and Credit 4, accordingly. 

 

	(f)	 The balances of the Borrower’s, PJSC Southern Kuzbass’ and Mechel PJSC’s accounts being
sufficient to pay interest accrued on Credit 1, Credit 2, Credit 3 and Credit 4, respectively. 

  

	(g)	 An original copy of the relevant payment instructions to pay funds required for full repayment of debts under
Credit 1, Credit 2, Credit 3 and Credit 4. 

  

	(h)	 If applicable, any other permits, documents, opinions or assurances which the Credit Manager believes are
necessary or desirable in connection with the execution and performance of or any transactions contemplated by Addendum 1 and the New Financial Documents or to ensure their effectiveness or enforceability. 

PART 4. TRANCHE D 
  

	(i)	 Documents evidencing the satisfaction of all conditions specified in paragraphs 1 – 6 of Schedule 2
(Conditions Subsequent) to Addendum 1. 

  

	(j)	 A copy, certified by the Borrower’s authorized person, of the loan agreement between the Borrower and
Mechel PJSC for the amount equal to or exceeding the amount specified in the relevant Disbursement Request and specifying that the purpose of such loan is not restricted under this Agreement (if applicable). 

 

	(k)	 An evidence of notification by the Borrower and/or Mechel PJSC (as applicable) of their respective shareholders
of their right to request that shares owned by such shareholders be repurchased by the relevant issuer in connection with the performance of the Repurchase Obligation, specifying the repurchase price and the manner in which such repurchase shall be
effected. 

  

	(l)	 The list of shareholders of each of the Borrower and/or Mechel PJSC (as applicable), in each case certified by
the issuer’s authorized person, who are entitled to request that the relevant issuer repurchase shares owned by such shareholder in connection with the performance of the Repurchase Obligation. 

 

	(m)	 A copy, certified by the issuer’s authorized person, of the resolution of the board of directors of each
of the Borrower and/or Mechel PJSC (as applicable) determining the repurchase price of shares to be repurchased in connection with the performance of the Repurchase Obligation. 

 

	(n)	 The register (in any form), signed by the relevant issuer’s authorized person, of all repurchase requests
to be satisfied in connection with the performance of the Repurchase Obligation, specifying the number of shares to be repurchased from each of the requesting shareholders. 

 

	(o)	 A copy, certified by the relevant issuer’s authorized person, of the report, as approved by the board of
directors of the Borrower and/or Mechel PJSC (as applicable), respectively, on the results of submission by the shareholders of their requests to have their shares repurchased in connection with the performance of the Repurchase Obligation.

  
 129 

	(p)	 An original copy of the payment instruction to transfer the proceeds of the loan under the loan agreement
specified in paragraph 2 above, from the Borrower to Mechel PJSC (if applicable). 

  

	(q)	 An original copy of each payment instruction required to transfer the proceeds of utilization of Tranche D to
the relevant shareholder of the Borrower and/or Mechel PJSC (as applicable) or, as the case may be, to a notary’s deposit account of a notary public at the place of the issuer’s location, in order to satisfy each repurchase request
submitted in connection with the performance of the Repurchase Obligation. 

  

	(r)	 If applicable, any other permits, documents, opinions or assurances which the Credit Manager believes are
necessary or desirable in connection with the execution and performance of or any transactions contemplated by Addendum 1 and the New Financial Documents or to ensure their effectiveness or enforceability. 

  
 130 

 APPENDIX 4 

CONDITIONS SUBSEQUENT 

PART 1. CONDITIONS SUBSEQUENT IN RELATION TO TRANCHE A AND TRANCHE B 

 

	1.	 Within two (2) Business Days after the corresponding date of assignment, but not later than twenty
(20) Business Days after the corresponding Drawdown Date – copies of certificates of transfer of the rights and obligations (transfer certificates) under the Existing PXF Credit agreements (signed by the relevant former creditor, SSK and
credit agent). 

  

	2.	 Within twenty (20) Business Days after (i) the date of SSK redeeming the rights of claim of all
creditors under the Existing PXF Credit agreements or (ii) the date of payment of all principal under the Existing PXF Credit agreements, whatever comes first – transfer in pledgee, for the benefit of the Pledge Manager to secure the
obligations of the Borrower under this Agreement, of additionally twenty five (25) percent plus one (1) common share in the authorized capital of each PJSC Southern Kuzbass and JSHC Yakutugol not being subject to any Encumbrance, and also
making an entry in the depo accounts on the said shares encumbrance by pledge, issue to the Credit Manager of documents requested by the latter confirming the observance of the requirements of constituent and other internal documents and the
legislation pertaining to the order of approval of transactions in the form of originals/notarized copies/extracts from corporate decisions in the form of minutes of the general meeting of shareholders approving the relevant transactions and a poll
deed or another document confirming the decision taken by the general meeting of shareholders to approve the said transactions, confirming the powers of the person signing each supplementary agreement to the pledge agreement on behalf of the Pledger
to secure the performance of the Borrower’s obligations under this Agreement; 

  

	3.	 Within thirty (30) calendar days from the first Drawdown Date – confirmation of compensation to DC
VTB LLC of documented legal expenses in the London court of international arbitration (LCIA) making not less than one million eighty seven thousand one hundred forty five 12/00 (1,087,145.12) Euro (in Rubles at the exchange rate of the Central Bank
rate of the Russian Federation as of the date of payment); 

  

	4.	 2. Within ninety (90) calendar days after (i) the date of SSK redeeming the rights of claim of all
creditors under the Existing PXF Credit agreements or (ii) the date of payment of all principal under the Existing PXF Credit agreements, whatever comes first – transfer in subsequent pledgee, for the benefit of the Bank to secure the
obligations of the Obligors under the Existing Credits (by signing additional agreements to the existing agreements of pledge or new agreements of pledge, as the case may be) of additionally twenty five (25) percent plus one (1) common
share in the authorized capital of each PJSC Southern Kuzbass and JSHC Yakutugol not being subject to any Encumbrance, except for the Encumbrance mentioned in para. 2 above, and also making an entry in the depo accounts on the said shares
encumbrance by pledge, issue to the Bank of documents requested by the latter confirming the observance of the requirements of constituent and other internal documents and the legislation pertaining to the order of approval of transactions in the
form of originals/notarized copies/extracts from corporate decisions in the form of minutes of the general meeting of shareholders approving the relevant transactions and a poll deed or another document confirming the decision taken by the general
meeting of shareholders to approve the said transactions, confirming the powers of the person signing each supplementary agreement to the pledge agreement on behalf of the Pledger to secure the performance of the Obligors’ obligations under the
Existing Credits; 

  
 131 

 PART 2. CONDITIONS SUBSEQUENT IN RELATION TO TRANCHE D 

 

	(s)	 Within sixty (60) calendar days from a Drawdown Date in relation to Tranche D on which the Credit is
utilized to be further applied for the purposes set out in paragraphs (i) or (ii) of clause (d) of Article 3.1: 

  

	 	(i)	 execution of the Agreement(s) on pledge of repurchased shares in relation to all ordinary shares in the
Borrower for the repurchase of which the Credit was utilized on such Drawdown Date; 

  

	 	(ii)	 delivery to the Credit Manager of documents evidencing the compliance with the requirements of constitutional
and other internal documents and the law in relation to the approval of transactions, in the form of original copies/notarized copies/excerpts from corporate resolutions in the form of the minutes of a meeting of the board of directors and/or
general shareholders’/participants’ meeting (as applicable) of the relevant Pledgor approving all Agreements on pledge of repurchased shares referred to in (a) above to which it is a party; 

 

	 	(iii)	 delivery to the Credit Manager of an
up-to-date statement of the relevant Pledgor’s deposit account with the Depositary evidencing the Pledgor’s title to shares pledged under each of the
Agreements on pledge of repurchased shares referred to in (a) above; 

  

	 	(iv)	 delivery to the Depositary of the relevant Pledgor’s pledge instruction instructing the Depositary to
register the share pledge created under each of the Agreements on pledge of repurchased shares referred to in (a) above; 

  

	 	(v)	 delivery to the Credit Manager of an
up-to-date statement of the relevant Pledgor’s deposit account with the Depositary evidencing the registration of the share pledge in favour of the Pledge Manager
as pledgee under each of the Agreements on pledge of repurchased shares referred to in (a) above; 

  

	 	(vi)	 receipt by the Credit Manager of a legal opinion in relation to the Agreements on pledge of repurchased shares
as referred to in (a) above being in conformity with the Russian law and the capacity of the relevant Pledgors to enter into such Agreements on pledge of repurchased shares, as prepared by: 

 

	 	(i)	 White & Case LLP, a legal adviser of the Credit Manager; or 

 

	 	(ii)	 if for any reason such legal opinion may not be so received by the Credit Manager when required, any of the
following legal firms engaged by the Borrower: 

  

	 	(A)	 Clifford Chance; 

  

	 	(B)	 Herbert Smith Freehills; 

 

	 	(C)	 Allen&Overy; 

  

	 	(D)	 Linklaters, 

provided that such legal opinion shall be addressed to the Credit Manager and shall be satisfactory to the Credit Manager in form and
substance. 
  

	(t)	 Within sixty (60) calendar days from a Drawdown Date in relation to Tranche D on which the Credit is
utilized to be further applied for the purposes set out in paragraphs (iii) or (iv) of clause (d) of Article 3.1: 

  

	 	(i)	 execution of the Agreement(s) on pledge of repurchased shares in relation to all ordinary shares in Mechel PJSC
for the repurchase of which the Credit was utilized on such Drawdown Date; 

  

	 	(ii)	 delivery to the Credit Manager of documents evidencing the compliance with the requirements of constitutional
and other internal documents and the law in relation to the approval of transactions, in the form of original copies/notarized copies/excerpts from corporate resolutions in the form of the minutes of a meeting of the board of directors and/or
general shareholders’/participants’ meeting (as applicable) of the relevant Pledgor approving all Agreements on pledge of repurchased shares referred to in (a) above to which it is a party; 

  
 132 

	 	(iii)	 delivery to the Credit Manager of an
up-to-date statement of the relevant Pledgor’s deposit account with the Depositary evidencing the Pledgor’s title to shares pledged under each of the
Agreements on pledge of repurchased shares referred to in (a) above; 

  

	 	(iv)	 delivery to the Credit Manager of the relevant Pledgor’s pledge instruction instructing the Depositary to
register the share pledge created under each of the Agreements on pledge of repurchased shares referred to in (a) above; 

  

	 	(v)	 delivery to the Credit Manager of an
up-to-date statement of the relevant Pledgor’s deposit account with the Depositary evidencing the registration of the share pledge in favour of the Pledge Manager
as pledgee under each of the Agreements on pledge of repurchased shares referred to in (a) above; 

  

	 	(vi)	 receipt by the Credit Manager of a legal opinion in relation to the Agreements on pledge of repurchased shares
as referred to in (a) above being in conformity with the Russian law and the capacity of the relevant Pledgors to enter into such Agreements on pledge of repurchased shares, as prepared by: 

 

	 	(i)	 White & Case LLP, a legal adviser of the Credit Manager; or 

 

	 	(ii)	 if for any reason such legal opinion may not be so received by the Credit Manager when required, any of the
following legal firms engaged by the Borrower: 

  

	 	(A)	 Clifford Chance; 

  

	 	(B)	 Herbert Smith Freehills; 

 

	 	(C)	 Allen&Overy; 

  

	 	(D)	 Linklaters, 

provided that such legal opinion shall be addressed to the Credit Manager and shall be satisfactory to the Credit Manager in form and
substance. 
 PART 3. OTHER CONDITIONS SUBSEQUENT 
  

	(u)	 Within ninety (90) calendar days from the date of Addendum 1: 

 

	 	(i)	 delivery of documents evidencing that amendments, as agreed between the Borrower and the Credit Manager, to the
articles of Liable Parties specified by the Credit Manager, or the revised articles of such Liable Parties incorporating such amendments, have been duly approved and registered by the competent state registration authorities; 

 

	 	(ii)	 delivery of a document, in the form agreed by the Borrower and the Credit Manager, describing in detail the
movement of cash under the Intragroup Loans; 

  

	 	(iii)	 evidence of settlement of outstanding debts under the Intragroup Loans (including by way of set-off, repayment or subordination to the Creditors’ rights under the Financial Documents or otherwise) on the terms agreed by the Borrower and the Credit Manager. 

  
 133 

 APPENDIX 5 

FORM OF A DISBURSEMENT REQUEST 

From:    [name of the Borrower] 

To:        [name of the Credit Manager] 

Date:               [●] 

Dear Sirs, 
 Re: Syndicated loan agreement

 dated 12 July 2018, as amended and restated by addendum 1 dated [●] (hereinafter referred to as the
Agreement) 
  

	1.	 We refer to the above-mentioned Agreement. The terms defined in the Agreement shall have the same meaning in
this Disbursement Request, unless otherwise determined herein below. 

  

	2.	 Please extend a Credit [Tranche A] / [Tranche B] / [Tranche C] / [Tranche D] subject to the following terms and
conditions: 

  

			
	Drawdown date:	  	[●]
		
	Credit Currency:	  	[Euro]/[Ruble]
		
	Amount:	  	[●]
		
	Interest Period:	  	1 month

  

	3.	 We confirm that as of the date of this Disbursement Request [each Initial Requirement [for Tranche A] / [for
Tranche B] / [for Tranche C] / [for Tranche D] stated in Clause 4.1 (Preliminary terms) of the Agreement and] 1 all assurances of circumstances listed in Clause 16 (Representations OF
circumstances) of the Agreement remain true, except for the infringements about which the Financing Parties were informed by the Borrower in writing (with a copy sent by e-mail) in a notice / notices dated
[date]. 

  

	4.	 The funds under this Credit are to be remitted to [indicate the account]. 

 

	5.	 This Disbursement Request is irrevocable. 

Best regards, 
  

                          
                                   

authorized representative 
 [name of the Borrower] 

 
  

	1 	 The text in square brackets is to be included only in the first Disbursement Request. 

  
 134 

 APPENDIX 6 

MODEL FORM OF AN AGREEMENT OF ASSIGNMENT OF THE CREDITOR’S RIGHTS2 

AGREEMENT 
 OF ASSIGNMENT
OF RIGHTS [AND DEBT CONVERSION] 
             [●]
20     
 between 

[EXISTING CREDITOR] 
 [NEW
CREDITOR] 
 and 

[CREDIT MANAGER] 
  

 

	2 	 The text of the Agreement should be edited depending on the circumstances: whether it refers only to the
assignment of rights (after complete drawdown of the credit), to the assignment of rights and debt conversion (when only a part of the credit is drawn down) or only to the debt conversion (during syndication, when the credit is not yet disbursed).
Besides the Agreement, it may be necessary to sign a Deed of conveyance, with the relevant amendments introduced into the text of the Agreement. 

  
 135 

 TABLE OF CONTENT 

 

							
	Clause	  	Page	 
	 1.
	  	 INTERPRETATION
	  	 	136	 
			
	 2.
	  	 SUBJECT OF THE CREDITOR RIGHTS ASSIGNMENT AGREEMENT
	  	 	137	 
			
	 3.
	  	 PERFORMANCE OF OBLIGATIONS OF THE PARTIES
	  	 	138	 
			
	 4.
	  	 PAYMENTS
	  	 	139	 
			
	 5.
	  	 NOTICES
	  	 	139	 
			
	 6.
	  	 APPLICABLE LAW
	  	 	140	 
			
	 7.
	  	 DISPUTE RESOLUTION
	  	 	140	 
			
	 8.
	  	 ENTERING INTO THE AGREEMENT
	  	 	140	 

 Appendix 1    Form of the Borrower’s Notice 

THIS AGREEMENT OF ASSIGNMENT OF RIGHTS [AND DEBT CONVERSION] (hereinafter referred to as the Creditor Rights Assignment Agreement) was entered
into on [●] 20     
 Between: 
  

	(1)	 [●], [public] joint stock company] / [limited liability company] established according to the legislation
of the Russian Federation, entered in the Uniform state register of legal entities of the Russian Federation under number (OGRN): [●], with its registered office at the address: [address] [represented by [name, patronymic, surname], acting on
the basis of [power of attorney] [Articles of Association]] OR [company/legal entity/ limited liability company / [public] joint stock company] [founded ] / [organized and operating] according to the laws of [jurisdiction], [located / registered /
having its head office] at the address [address], represented by [name, patronymic, surname], acting on the basis of [power of attorney] [Articles of Association], as the assignor (hereinafter referred to as the Existing Creditor);

  

	(2)	 [●], [public] joint stock company] / [limited liability company] established according to the legislation
of the Russian Federation, entered in the Uniform state register of legal entities of the Russian Federation under number (OGRN): [●], with its registered office at the address: [address] [represented by [name, patronymic, surname], acting on
the basis of [power of attorney] [Articles of Association]] OR [company/legal entity/ limited liability company / [public] joint stock company] [founded ] / [organized and operating] according to the laws of [jurisdiction], [located / registered /
having its head office] at the address [address], represented by [name, patronymic, surname], acting on the basis of [power of attorney] [Articles of Association], as the assignee (hereinafter referred to as the New Creditor); and;

  

	(3)	 [●] [full name of the bank - credit manager] as the credit manager (hereinafter referred to as the
Credit Manager). 

 THE PARTIES AGREE AS FOLLOWS: 
  

	1.	 INTERPRETATION 

The terms defined in the Credit Agreement shall have the same meaning in this Creditor Rights Assignment Agreement, unless otherwise defined
hereinafter. 

  
 136 

 In this Creditor Rights Assignment Agreement: 

Bank Account shall mean the bank account of the Existing Creditor specified in para. 4(b) of this Creditor Rights Assignment Agreement.

 Transaction Date shall mean [date of this Creditor Rights Assignment Agreement] / [specify the agreed calendar date on which the
assignment of claims and debt conversion will take place]. 
 [Debt shall mean the obligation of the Existing Creditor to grant to the
Borrower a Credit within the Unused Credit limit making as of the date of this Creditor Rights Assignment Agreement [●] [Rubles] [US dollars] [Euro].] 

Borrower shall mean [open/public] / [closed] joint stock company] / [limited liability company] established according to the legislation
of the Russian Federation, entered in the Uniform state register of legal entities of the Russian Federation under number (OGRN): [●], with its registered office at the address: [address] [represented by [name, patronymic, surname], acting on
the basis of [power of attorney] [Articles of Association]]. 
 Credit Agreement shall mean [credit agreement for an amount of
[●][Rubles] [US dollars] [Euro] / [agreement on granting a syndicated credit for an amount of [●][Rubles] [US dollars] [Euro]] dated [indicate the date of the credit agreement] concluded, among others, between the Existing Creditor and
the Borrower. 
 [Rights of claim shall mean the rights to claim return of the Outstanding credit making [specify the credit extended
to the Borrower by the Existing Creditor as of the date hereof], interest and other payments due to the Existing Creditor from the Borrower under the terms and conditions of the Credit Agreement.] 

Parties shall mean the Existing Creditor, the New Creditor and the Credit Manager, and a Party shall mean each and any of them.

 Notice shall mean the notice of Assignment of Claims [and Debt Conversion] of the Existing Creditor under the Credit Agreement on
the terms of this Creditor Rights Assignment Agreement, drawn in accordance with the form given in Appendix 1 to the Creditor Rights Assignment Agreement and sent to the Borrower by the Existing Creditor. 

Value of the rights of claim shall mean the amount of [●] ([●]) [Rubles [US dollars] [Euro]. 

 

	2.	 SUBJECT OF THE CREDITOR RIGHTS ASSIGNMENT AGREEMENT 

 

	2.1	 [On the Date of the Transaction the Existing Creditor assigns, and the New Creditor accepts the Rights of Claim
in the order and subject to the terms and conditions specified in Article 22 (Change of the Parties) of the Credit Agreement and in this Creditor Rights Assignment Agreement.] / [On the Date of the Transaction the Existing Creditor converts
and the New Creditor accepts the Debt in the order and subject to the terms and conditions specified in Article 22 (Change of the Parties) of the Credit Agreement and in this Creditor Rights Assignment Agreement.] 

 

	2.2	 The Rights of Claim under the Credit Agreement are transferred to the New Creditor free from any Encumbrances.

  
 137 

	3.	 PERFORMANCE OF OBLIGATIONS OF THE PARTIES 

 

	3.1	 [On the Date of the Transaction the New Creditor pays to the Existing Creditor the Value of the Rights of Claim
by remittance to the Bank account.] 

  

	3.2	 On the Date of the Transaction the Existing Creditor ceases to be the Creditor under the Credit Agreement [to
the extent corresponding to the Rights of Claim], and the New Creditor becomes the Creditor under the Credit Agreement [to the extent corresponding to the Rights of Claim] becoming subject to all provisions of the Credit Agreement and other
Financial Documents, in particular the New Creditor is vested with the right to participate in the Creditors’ decision making procedures. 

  

	3.3	 The Existing Creditor confirms that it is not aware of the Borrower having any objections against such Existing
Creditor which the Borrower can make against the New Creditor according to Article 386 of the Civil Code. 

  

	3.4	 The New Creditor confirms that it has been acquainted with all the terms and conditions of the Credit Agreement
and other Financial Documents, has conducted (and will continue to conduct) its own independent appraisal and evaluation of the financial standing of each Obligor and at taking the decision to sign this Creditor Rights Assignment Agreement it did
not rely on any information given to it by the Existing Creditor. 

  

	3.5	 The New Creditor confirms the appointment of: 

 

	 	(a)	 Pledge Manager as the pledge manager according to Clause 21.2 (Status of Creditors and Appointment of the
Pledge Manager) of the Credit Agreement; and 

  

	 	(b)	 Credit Manager as the credit agent according to Clause 23.2 (Appointment of the ) of the Credit
Agreement. 

  

	3.6	 On the Date of the Transaction the Existing Creditor shall: 

 

	 	(a)	 Transfer to the New Creditor the documents certifying all rights of claim of the Existing Creditor as the
Creditor under the Credit Agreement, including the original of the Credit Agreement and other Financial Documents to which the Existing Creditor is a party, all amendments or modifications thereof, copies of Disbursement Requests, and also all
documents confirming the scope of the Rights of Claim [and the Debt] as of the Date of the Transaction; 

  

	 	(b)	 Present to the New Creditor the data of value for exercising the Rights of Claim, including the data on the
Borrower’s infringement of the Credit Agreement; and 

  

	 	(c)	 Send a Notice to the Borrower. 

 

	3.7	 The duties of the New Creditor to pay the Value of the Rights of Claim shall be considered discharged once the
amount of the Value of the Rights of Claim is credited to the Bank account of the Existing Creditor. 

  

	3.8	 The New Creditor undertakes to transfer to the Credit Manager the document confirming its tax residency
according to Clause 13.6 (Presenting of documents confirming tax residency) of the Credit Agreement issued not later than [one (1) year] before the Date of the Transaction, if applicable, within [two (2) Business Days after this Agreement
is signed.] 

  
 138 

	3.9	 The Parties undertake to take all other actions necessary for their performance of their obligations under this
Clause 3 (Performance of Obligations of the Parties). 

  

	4.	 PAYMENTS 

All payments under this Creditor Rights Assignment Agreement shall be performed by bank transfer using the following details: 

 

	 	(a)	 New Creditor (if applicable): 

 

			
	Payee:	  	[●]
	location:	  	[●]
	Bank:	  	[●]
	SWIFT:	  	[●]
	IBAN:	  	[●]
	Account No.	  	[●]

 or another account specified by the New Creditor in written form; 

 

	 	(b)	 Existing Creditor: 

  

			
	Payee:	  	[●]
	Bank:	  	[●]
	location:	  	[●]

			
	SWIFT:	  	        [●]
	Corr. account:	  	        [●]
	Settlement account:	  	        [●]
	BIC:	  	        [●]

 or another account specified by the Existing Creditor in written form; 

 

	5.	 NOTICES 

Any notices or other official communications directed according to this Creditor Rights Assignment Agreement shall be made out in writing and
be personally handed over, sent by fax or special delivery mail, return receipt requested, to the following addresses: 
  

	 	(a)	 New Creditor: 

  

			
	[●]	  	
	Attn.:	  	[●]
	e-mail:	  	[●]
	Phone:	  	        [●]
	Fax:	  	        [●]

  

	 	(b)	 Existing Creditor: 

  

			
	[●]	  	
	Attn.:	  	[●]
	e-mail:	  	[●]
	Phone:	  	        [●]
	Fax:	  	        [●]

  
 139 

	 	(c)	 Credit Manager: 

Attn.:    [●] 

e-mail:             [●] 

Phone:             [●] 

Fax:                 [●] 

 

	6.	 APPLICABLE LAW 

This Creditor Rights Assignment Agreement is governed by Russian laws. 

 

	7.	 DISPUTE RESOLUTION 

In case of any dispute in connection with this Creditor Rights Assignment Agreement, including interpretation of its provisions, validity,
enforcement or termination, such dispute is to be considered by [the Arbitration court [●]] OR [●].3 

[extrajudicial settlement] 
  

	8.	 ENTERING INTO THE AGREEMENT 

This Creditor Rights Assignment Agreement is executed in three (3) originals, one for each of the Parties to the Creditor Rights
Assignment Agreement. 
  
  

	3 	 Introduce an arbitration clause – referring the dispute for resolution to the commercial arbitration body
or ad hoc arbitration. 

  
 140 

 APPENDIX 1 to the Creditor Rights Assignment Agreement 

Form of the Borrower’s Notice 
  

			
	From:	 	[Credit Manager on behalf of the Existing Creditor]
	To:	 	 [Borrower]
 [Address of the
Borrower]

		
	Copy:	 	 [New Creditor]
 [Address of the New
Creditor]

 NOTICE OF THE ASSIGNMENT OF THE RIGHTS OF CLAIM 

[AND DEBT CONVERSION] 
 Company [●],
registration number [●], address: [●] (Existing Creditor) hereby informs[●], OGRN [●], address: Russian Federation, [●] (Borrower) on the assignment of all rights of claim [and debt conversion] under the
agreement of syndicated credit between the Borrower and, among others, the Existing Creditor dated [●] (Credit Agreement), from the Existing Creditor to [●], address: [●] (New Creditor) under the terms and conditions
formulated in the Creditor Rights Assignment [and debt conversion] Agreement between the Existing Creditor and the New Creditor contained in Appendix 1. 

[On receiving this notice the Borrower shall continue to perform the payment obligations to the New Creditor under the Credit Agreement effecting the payments
to the Credit Manager according to the terms and provisions of the Credit Agreement.] 
 Appendix No. 1: Copy of the Creditor Rights Assignment [and
debt conversion] Agreement between the Existing Creditor and the New Creditor. 
 L.S. 

  
 141 

 PARTIES’ SIGNATURES 

[Existing Creditor] 

[●]                   
                                         
     )        
                                        
                     

[●]                         
                                       
)        
                                         
                    

seal                   
  
 [New Creditor] 

[●]                         
                                       
)        
                                         
                    

[●]                         
                                       
)        
                                         
                    

seal                    

 [Credit Manager] 

[●]                   
                                         
     )        
                                         
                    

[●]                         
                                       
)        
                                         
                    

seal                   
  

  
 142 

 APPENDIX 7 

FORM OF A CERTIFICATE OF CONFORMITY 

[CORPORATE LETTERHEAD OF THE BORROWER] 

Our ref. No. 

            20    . 

VTB Bank (public joint-stock company) 

Department for support of credit, 

pledge and documentary transactions 

as the Credit Manager 
 Certificate
of Conformity 
 We hereby confirm that as of             , 20    : 

 

			
		  	Value
	1. Net Debt / EBITDA:	  	
	2. EBITDA / Net Interest Payments	  	

 The notions and terms used in this Certificate of Conformity have the same meanings as in the agreement on syndicated credit
dated 12 July 2018 between, among others, VTB Bank (PJSC) as, among other, the credit manager, and the Public Joint-Stock Company Chelyabinsk Metallurgical Plant as the borrower, as amended and restated by addendum 1 dated [●]
(hereinafter referred to as the Agreement), unless otherwise directly follows from the context of this Certificate of Conformity. 
 This Certificate
of Conformity is an integral part of the Agreement. 
 Appendix A 
  

	•	 	 calculation of financial indicators: Total Debt, Net Debt, Net Interest Payments and EBITDA (which includes all
items specified in the terms of Total Debt, Net Debt, Net Interest Payments and EBITDA given in clause 1.1 (Terms) of the Agreement) for the corresponding reporting period / as of the corresponding reporting date, 

Appendix B: copy of the opinion of the auditor concerning the financial statements of the Mechel Group given in conformity with para 17.7(d) of clause 17
(Obligations to provide information) of the Agreement, or of the company presenting the Report of a Financial advisor confirming all data cited in this Certificate of Conformity. 

On behalf of the Borrower 
 Position of the authorized person

 Full name 
 Signature 

L.S. 

  
 143 

 APPENDIX 8 

DATA ON THE STATUS OF THE FINANCIAL AND BUSINESS ACTIVITY 

We hereby inform that the Chelyabinsk Metallurgical Plant Public Joint Stock Company as of December 31,     (specify the year
preceding the date of the document): 
  

	(a)	 has no overdue debts to the federal budget, budgets of constituent entities of the Russian Federation, local
budgets and extra-budgetary funds; or 

  

	(b)	 has overdue debts to the federal budget, budgets of constituent entities of the Russian Federation, local
budgets and extra-budgetary funds in the amount of                     rubles (in figures and words), which is     % of the net
assets. 

  

	(c)	 has no payroll arrears; or 

 

	(d)	 has payroll arrears in the amount
of                     rubles (in figures and words). 

  

	(e)	 in the banks there are no orders with respect
to             accounts (name of the counterparty) not performed in time (file of overdue payments No. 2); 

 

	(f)	 in the banks there are orders with respect to
             accounts (name of the counterparty) not performed in time (file of overdue payments No. 2) (specify the bank, account and amount of the order that was not performed).

  

	(g)	 During the period from January 1,          to the present time, in
the course of business of (name of counterparty) there have not taken place the following negative events and trends (negative net assets; revenue drop by over 50% compared to the previous year; losses exceeding 25% of the net assets, which led to
net assets decrease of over 25% compared to their maximum value for the effective period of obligations but not longer than for the past 12 months (5 reporting dates); payables or receivables increase by more than three times; overdue receivables or
illiquid stocks, whose amount exceeds 25% of the net assets; double excess of current liabilities over current assets; enforcement proceeding). If any of the said events was observed in activities of the counterparty, there should be provided its
cost estimate and detailed comments. 

 Head 

L.S. 

  
 144 

 APPENDIX 9 

LIST OF BREACHES AND CIRCUMSTANCES TO BE REVIEWED FOR THE PURPOSE OF EXTENSION 

 

	(v)	 The Borrower shall: 

  

	 	(i)	 obtain a prior written consent of the Credit Manager (acting on the basis of the Decision of the Majority of
Creditors) for the following types of actions/transactions performed by Mechel Group members and/or Liable Parties: 

  

	 	(i)	 acquisition of assets (other than shares and participatory interests) and capital expenditures, other than:

  

	 	(A)	 acquisition of current assets in the Ordinary Course of Business; 

 

	 	(B)	 acquisition of assets by a Liable Party without limitation of liability from another Liable Party without
limitation of liability; 

  

	 	(C)	 acquisition of assets by a Liable Party with limited liability from another Liable Party with limited
liability; 

  

	 	(D)	 acquisition of assets by a member of the Mechel Group (other than a Liable Party) from another member of the
Mechel Group (other than a Liable Party); 

  

	 	(E)	 acquisition of assets by a member of the Mechel Group from another member of the Mechel Group for the aggregate
amount of two hundred fifty million (250,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of payment (in case of cash consideration) or the date of the transaction (in case of any other type
of consideration)) in any financial year; 

  

	 	(F)	 acquisition of non-current assets from companies that are not within
the Mechel Group, or the incurrence of capital expenditure, in each case, in the Ordinary Course of Business, which, together with the amount of debt raised under clause (a)(iii)(F), does not exceed ten billion (10,000,000,000) Rubles (or its
equivalent in any other currency at the rate of the Bank of Russia as at the date of calculation) in any financial year; 

provided that, if the Mechel Group does not use the permitted “cap” on capital expenditures as specified in (F) in any
financial year, the unused “cap” may be carried over to (but not further than) the immediately following financial year; 
  

	 	(ii)	 financial investments, including acquisition of securities (including shares/participatory
interests/investments in share/additional capital/property), other than: 

  

	 	(A)	 any such transactions between a member of the Mechel Group and another member of the Mechel Group for the
aggregate amount not exceeding five hundred million (500,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of payment) in any financial year; 

  
 145 

 the restriction in (A) above shall not apply to (1) any transactions with
shares/participatory interests held, directly or indirectly, by Liable Parties, other than Mechel PJSC and Mechel-Trans LLC, and (2) any transactions with shares/participatory interests in the share capital of the Liable Parties, Trade Port
Posiet JSC and Mechel-Temryuk Port LLC; 
  

	 	(B)	 cash deposits in (1) banks within the VTB Group, (2) other banks whose rating, according to any of
S&P / Moody’s / Fitch, is no more than two grades lower than the Credit Manager’s rating, (3) Uglemetbank JSC, (4) any other banks, provided that the aggregate amount of all funds deposited with such banks does not exceed, at
any time, one billion (1,000,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of depositing); 

  

	 	(C)	 other financial investments, subject to the Credit Manager’s prior consent in writing;

  

	 	(iii)	 attracting credits, loans and other financial borrowings (including advance payments for a period of over one
hundred and eighty (180) calendar days and other instruments whose economic nature is that of attracting borrowings), other than: 

  

	 	(A)	 loan facilities advanced to the Mechel Group members to finance their operations in the Ordinary Course of
Business in the aggregate amount not exceeding five billion (5,000,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of calculation) in any financial year; 

 

	 	(B)	 overdraft facilities up to the aggregate amount not exceeding five billion (5,000,000,000) Rubles (or its
equivalent in any other currency at the rate of the Bank of Russia as at the date of calculation) at any time, provided that the maturity of each of tranches thereunder is forty five (45) days or less; 

 

	 	(C)	 bank guarantees in order to obtain a VAT refund, without limitation of its aggregate value;

  

	 	(D)	 any other bank guarantees securing the Mechel Group’s liabilities incurred by it in the Ordinary Course of
Business, in the aggregate amount not exceeding, at any time, twenty billion (20,000,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of calculation); 

 

	 	(E)	 (without prejudice to Article 8.3 (Voluntary early repayment of Outstanding Credit)) loan facilities
advanced to refinance existing liabilities of the Mechel Group members, provided that such refinancing shall not result in the creation of additional security and/or an increase in the overall debt and/or an increase in the cost of financing and/or
a reduction of the debt maturity; 

  

	 	(F)	 any indebtedness incurred under a lease agreement in relation to assets required to conduct its operations in
the Ordinary Course of Business, provided that the amount of such indebtedness, together with capital expenditures incurred under clause (a)(i)(F), does not exceed ten billion (10,000,000,000) Rubles (or its equivalent in any other currency at the
rate of the Bank of Russia as at the date of calculation) 

  
 146 

	 	
in any financial year (and further provided that, for the purpose of calculation of the amount of such indebtedness, only principal debt under the relevant lease agreements shall be taken into
account as such debt is or would be reflected in the financial statements prepared in accordance with the IFRS); 

  

	 	(G)	 any other loans as permitted under (a)(iv) below; 

 

	 	(iv)	 granting/repayment of loans and other financial borrowings (including advance payments (with respect to the
advance payments received by Mechel Group members and/or the Liable Parties this subparagraph limits only the advance payments received for a period of over one hundred and eighty (180) calendar days) and other instruments whose economic nature
is that of provision of financing/attracting borrowings), other than the following transactions (provided that all loans falling under (A) – (J) below are unsecured): 

 

	 	(A)	 the relevant transactions between a Liable Party without limitation of liability and another Liable Party
without limitation of liability; 

  

	 	(B)	 the relevant transactions between a Liable Party with limited liability and another Liable Party with limited
liability; 

  

	 	(C)	 the relevant transactions between a member of the Mechel Group (other than a Liable Party) and another member
of the Mechel Group (other than a Liable Party); 

  

	 	(D)	 loans advanced/repaid by a Liable Party with limited liability to another Liable Party with limited liability;

  

	 	(E)	 loans advanced/repaid by a Liable Party to another member of the Mechel Group (other than a Liable Party) for
the aggregate amount not exceeding five billion (5,000,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of payment) in any financial year; 

 

	 	(F)	 loans advanced/repaid by a Liable Party with limited liability to another member of the Mechel Group (other
than a Liable Party), provided that, within thirty (30) calendar days from the date such loan is so advanced or repaid, as applicable, by the Liable Party with limited liability, any Liable Party receives the equivalent cash amount as a result
of a member of the Mechel Group (other than a Liable Party) making the repayment of, or advancing, a loan to such Liable Party; 

  

	 	(G)	 loans advanced/repaid by a Liable Party without limitation of liability to another Liable Party without
limitation of liability (1) in the aggregate amount not exceeding two billion (2,000,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of payment) in any financial year, or
(2) provided that, within thirty (30) calendar days from the date such loan is so advanced or repaid, as applicable, by the Liable Party without limitation of liability, any Liable Party without limitation of liability receives the
equivalent cash amount as a result of a member of the Mechel Group (other than a Liable Party without limitation of liability) making the repayment of, or advancing, a loan to such Liable Party without limitation of liability; 

 

	 	(H)	 loans advanced/repaid by a Liable Party without limitation of liability to a member of the Mechel Group (other
than a Liable Party), provided 

  
 147 

	 	
that, within thirty (30) calendar days from the date such loan is so advanced or repaid, as applicable, by the Liable Party without limitation of liability, any Liable Party without
limitation of liability receives the equivalent cash amount as a result of a member of the Mechel Group (other than a Liable Party) making the repayment of, or advancing, a loan to such Liable Party without limitation of liability;

  

	 	(I)	 loans advanced/repaid by a member of the Mechel Group (other than a Liable Party) to a Liable Party for the
aggregate amount not exceeding five billion (5,000,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of payment) in any financial year; 

 

	 	(J)	 loans advanced/repaid by a member of the Mechel Group (other than a Liable Party) or a Liable Party without
limitation of liability to Mechel PJSC for the aggregate amount (including the amount of dividends paid by such persons to Mechel PJSC under clause (a)(xiii)(D)) not exceeding five billion (5,000,000,000) Rubles (or its equivalent in any other
currency at the rate of the Bank of Russia as at the date of payment) in any financial year; 

  

	 	(K)	 funds on-loaned by a member of the Mechel Group to another member of
the Mechel Group using the proceeds of the Credit advanced to the Borrower hereunder, provided that such funds are applied in accordance with the purpose as set out in Article 3 (Purpose) hereof; 

 

	 	(L)	 loans advanced/repaid by a Liable Party to Mechel PJSC, provided that the proceeds of such loan/repayment shall
be further applied towards (1) the repayment of principal debt and payment of interest under the notes issued by Mechel PJSC for the total amount not exceeding six billion (6,000,000,000) Rubles (or its equivalent in any other currency at the
rate of the Bank of Russia as at the date of payment), as accrued since the Restructuring Date and during the term hereof, and (2) the repayment of debt due under facility agreements between Mechel PJSC and the Bank; 

 

	 	(M)	 loans advanced by the Guarantor to any Liable Parties for the aggregate amount not exceeding one billion
(1,000,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of payment), provided that such loans are repaid by the Liable Parties within sixty (60) calendar days of the provision of such
loan; 

  

	 	(v)	 provision of guarantees and/or suretyships (or similar instruments) to secure obligations of third parties,
including any persons within the Mechel Group, other than sureties and guarantees: 

  

	 	(A)	 issued by a member of the Mechel Group (other than a Liable Party) to secure obligations of another member of
the Mechel Group (except as set out in (C) below); 

  

	 	(B)	 issued by a Liable Party to secure obligations arising under any transaction which is permitted under clause
(a)(iii)(A)-(F); 

  

	 	(C)	 issued by a member of the Mechel Group in favour of tax authorities in respect of tax liabilities of another
member of the Mechel Group in connection with an application for VA refund, provided that the 

  
 148 

	 	
aggregate amount of the guarantor’s/surety’s liability under such guarantees and sureties does not exceed two billion (2,000,000,000) Rubles (or its equivalent in any other currency at
the rate of the Bank of Russia as at the date of calculation) at any time; 

  

	 	(vi)	 any disposal of assets (other than shares and participatory interests) by members of the Mechel Group, other
than a disposal: 

  

	 	(A)	 current assets in the Ordinary Course of Business; 

 

	 	(B)	 assets (including in the form of the provision of financial assistance) by a Liable Party without limitation of
liability to another Liable Party without limitation of liability; 

  

	 	(C)	 assets (including in the form of the provision of financial assistance) by a Liable Party with limited
liability to another Liable Party with limited liability; 

  

	 	(D)	 assets (including in the form of the provision of financial assistance) by a member of the Mechel Group (other
than a Liable Party) to another member of the Mechel Group (other than a Liable Party); 

  

	 	(E)	 assets by a member of the Mechel Group to another member of the Mechel Group for the aggregate amount not
exceeding two hundred fifty million (250,000,000) Rubles (or its equivalent in any other currency at the rate of the Bank of Russia as at the date of payment (in case of cash consideration) or the date of the transaction (in case of any other type
of consideration)) in any financial year; 

  

	 	(F)	 assets to companies outside the Mechel Group, provided that: (1) the aggregate value of such disposals
during the period from the Restructuring Date to the termination date of this Agreement does not exceed two point five (2.5) per cent. of the fixed assets of the Mechel Group as at the latest reporting date, and (2) such disposal is made in an
arm’s length transaction for cash and instalments, if any, are paid within three (3) months; 

  

	 	(vii)	 any disposal of shares and participatory interests by members of the Mechel Group, other than a disposal:

  

	 	(A)	 of shares and participatory interests by members of the Mechel Group to companies outside the Mechel Group,
provided that the aggregate share of companies whose shares/participatory interests are disposed of in any financial year, in the consolidated EBITDA and fixed assets of the Mechel Group does not exceed one (1) per cent. in the previous
financial year; 

 provided that the exception in (A) above shall not apply to (1) shares/participatory
interests in the share capital of Liable Parties, Trade Port Posiet JSC and Mechel-Temryuk Port LLC, and (2) shares/participatory interests directly or indirectly held by Liable Parties, other than Mechel PJSC and Mechel-Trans LLC; 

 

	 	(B)	 in a transaction between members of the Mechel Group for the aggregate amount not exceeding five hundred
million (500,000,000) Rubles (or its equivalent in any other currency at the exchange rate of the Bank of Russian as at the date of payment) in any financial year; 

  
 149 

	 	provided that the exception in (B) above shall not apply to (1) transactions involving shares/participatory interests directly or indirectly held by Liable Parties, other than Mechel PJSC and Mechel-Trans LLC,
and (2) transactions involving shares/participatory interests in the share capital of Liable Parties, Trade Port Posiet JSC and Mechel-Temryuk Port LLC; 

  

	 	(viii)	 an Encumbrance of assets or rights, except for: 

 

	 	(A)	 any Encumbrance which is in existence as at the date of execution of Addendum 1 and (solely in relation to a
hypothecation, mortgage, pledge and security assignments and excluding any Encumbrance of an asset purchased under a hire purchase agreement, where such Encumbrance is created by virtue of law, and any Encumbrance over payment, pledge and other
accounts and cash deposited in payment, pledge and other accounts of the Mechel Group companies) listed in the Encumbrance Letter; 

provided that, in case such Encumbrance is subsequently released, it is no permitted to create an Encumbrance over the relevant assets to
secure any liabilities to third parties without the Credit Manager’s prior consent in writing; 
  

	 	(B)	 any Encumbrance over an asset purchased under a hire purchase agreement, where such Encumbrance is created by
virtue of law; 

  

	 	(C)	 any Encumbrance which is created in relation to obligations arising under any transactions permitted under
clause (a)(iii)(E); 

  

	 	(D)	 any Encumbrance which is created in favour of Gazprombank (Joint Stock Company) under the terms of the
restructuring of liabilities owed by the Mechel Group companies to Gazprombank (Joint Stock Company) (the terms of restructuring of the facilities advanced by Gazprombank (Joint Stock Company) shall be agreed with the Credit Manager);

  

	 	(ix)	 other significant transactions violating any of the following conditions: 

 

	 	(A)	 amount of the transaction/transactions of any Liable Party exceeds ten percent (10%) of the balance-sheet value
of assets of any relevant Liable Party based on RAS reporting framework for a Russian Federation resident or other applicable reporting framework for a Russian Federation non-resident in the aggregate for
every past twelve (12) months; 

  

	 	(B)	 amount of the transaction/transactions of a Mechel Group member together with other similar transactions of
Mechel Group members exceeds ten percent (10%) of the balance-sheet value of Mechel Group assets determined on the basis of the latest audited consolidated annual financial statements of Mechel Group according to IFRS, in the aggregate for every
past twelve (12) months; 

  

	 	(x)	 reorganization (other than): 

 

	 	(A)	 any reorganization in the form of transformation of a legal entity of any particular legal form into a legal
entity of another legal form (without involving any other form of reorganization), provided that the Borrower shall procure that all acts as may be required to preserve the 

  
 150 

	 	
pledge created under the Security Agreement in relation to shares/participatory interests in the share capital of the company to be so reorganized and all registrations and records in relation to
such pledge; 

  

	 	(B)	 any reorganization of a member of the Mechel Group who is not a Liable Party; 

 

	 	(xi)	 change of the core activity, where such change significantly affected the Liable Parties’ financial
condition; 

  

	 	(xii)	 decrease of the authorized capital (except for the decrease in accordance with the mandatory legislation)
and/or issue of new shares (including additional authorized shares), repurchase of own shares (except for the repurchase in accordance with the mandatory legislation); 

 

	 	(xiii)	 payment of dividends or making other similar payments (including repayment of the loans obtained from the
affiliates, other than those specified in clause (a)(iv) above), except for: 

  

	 	(A)	 payment of dividends by a member of the Mechel Group to a Liable Party without limitation of liability, subject
to the restrictions in (F) below; 

  

	 	(B)	 payment of dividends by a Liable Party with limited liability or a member of the Mechel Group (other than a
Liable Party) to a Liable Party with limited liability, subject to the restrictions in (F) below; 

  

	 	(C)	 payment of dividends by a member of the Mechel Group (other than a Liable Party) to another member of the
Mechel Group (other than a Liable Party), subject to the restrictions in (F) below; 

  

	 	(D)	 payment of dividends by a Liable Party without limitation of liability to Mechel PJSC (1) for the
aggregate amount (together with the amount of loans referred to in clause (a)(iv)(J)) not exceeding five billion (5,000,000,000) Rubles in any financial year, and (2) without any cap on the amount of such dividends, provided that Mechel PJSC
shall apply the full amount of such dividends towards repayment of its debt to Liable Parties without limitation of liability; 

  

	 	(E)	 payment of dividends on preference shares of Mechel PJSC (1) in the amount calculated under the articles
of Mechel PJSC, but in any event not exceeding twenty (20) per cent. of the Mechel Group’s consolidated net income for the relevant financial year, or, the amount so calculated under the articles of Mechel PJSC is nil or negative, then
(2) in the amount not exceeding one hundred million (100,000,000) Rubles in any financial year; 

  

	 	(F)	 payment of dividends to minority shareholders of the Mechel Group companies for the aggregate amount not
exceeding five hundred million (500,000,000) Rubles (excluding payments made under sub-clause (E) above) in any financial year; 

 

	 	(ii)	 obtain approval (ensure obtaining approval) of changes to the conditions (reduction of the general and/or
weighted average term, rate growth above the interest rate equal to the CBR Key Rate multiplied by one point five (1.5) per cent. per annum, for loans in rubles and 8% (eight percent) per annum for loans in US Dollars or Euros, or other payments
(including, but not limited to, fees, penalties, etc.) or provision of additional security under (except for that provided for by sub-clause (a)(viii)) of credit agreements between any Mechel Group company and
any Other Senior Creditor; 

  
 151 

	 	(iii)	 to maintain (enforce maintaining) the ratio of Mechel Group’s debt to VTB Group / Mechel Group’s debt
(under credit agreements) to any Other Senior Creditor as of the date of signing this Agreement, considering provisions of Article 8.4 (Mandatory early repayment of Outstanding Credit ) of this Agreement: 

 

	 	(iv)	 procure that there are no Encumbrances in relation to any rights under any Intragroup Loans.

  

	(w)	 The following events: 

 

	 	(i)	 non-performance or improper performance by any Liable Party or any
company of Mechel Group of any financial obligation to any extent under any agreement to the Credit Manager that in accordance with the Legislation is an affiliate of the Credit Manager or a party belonging to the Credit Manager Group and if these
violations were not remedied within five (5) Business Days from the date of their occurrence; 

  

	 	(ii)	 the Credit Manager having information (as at the Test Date and solely with reference to the facts and
circumstances existing on the Test Date): 

  

	 	(i)	 of the Liable Parties or any Mechel Group company violating payment obligations under any of its commitments to
third parties under the Financial Debt for the amount exceeding USD 5,000,000 (Five Million) (or RUB equivalent at the exchange rate of the Bank of Russia as of the date of the settlement) as total interest and / or USD 25,000,000 (Twenty-Five
Million) (or RUB equivalent at the exchange rate of the Bank of Russia as of the date of the settlement) as total principal debt and / or other obligations and / or creditors claiming accelerated repayment of the Financial Debt of Mechel Group
company for the total amounts exceeding those stated above and / or the right of acceleration of Mechel Group debt for the total amounts exceeding those stated above arising for the creditors of Mechel Group, with these violations not having been
remedied within 5 (Five) Business Days from the time of their occurrence, except for the violations the Financing Parties have been notified of by the Borrower in writing before the date of Addendum 1; and / or 

 

	 	(ii)	 the Borrower and/or a Mechel Group company and/or third parties taking any actions aimed at
(i) terminating or reducing the security, or (ii) declaring invalid or not concluded the transactions ensuring performance of obligations by the Borrower under Financial Documents and if the Pledge Manager files a claim as a part of a
judicial procedure in relation to the pledged item including measures to enforce such claims in connection with commencement of the Pledgor bankruptcy proceedings; 

 

	 	(iii)	 institution of supervision, financial rehabilitation, receivership, bankruptcy or similar proceedings under the
Bankruptcy Law in relation to the Borrower and/or any other Liable Party; 

  

	 	(iv)	 cancellation or revocation from any Liable Party of a license required to carry out core business, or the
license expired and it (license) was not extended or received within thirty (30) calendar days from the date of its revocation (expiry) / any Liable Party ceased to be a member of the self-regulatory organization (if in accordance with the
Legislation this is required to carry out core business) and has not yet joined another self-regulatory organization/ has not restored membership in the self-regulatory organization within thirty (30) calendar days from the date of membership
termination, in each case, where such event or circumstance results in the interruption of the Liable Party’s business; 

  
 152 

	 	(v)	 failure by any of Mechel Group companies to comply with tax liabilities or other obligations for the period of
more than sixty (60) calendar days in respect of budget and non-budgetary funds in the amount of more than 1,000,000,000 (one billion) Rubles (or equivalent in foreign currency at the exchange rate of the
Bank of Russia as of the date of calculation) subject to the entry into force of a court decision on recovery of relevant tax liability or other obligation in relation to budget and non-budgetary funds, unless
such liabilities are contested in good faith by such Mechel Group company; 

  

	 	(vi)	 the percentage of ordinary shares in the authorized capital of Mechel PJSC held by I. V. Zyuzin and his family
members, directly or through third parties, drops below fifty point one percent (50.1%) of the total amount of ordinary shares; 

  

	 	(vii)	 Mechel PJSC ceases to hold, directly or indirectly (via third parties), more than fifty (50) per cent. of
shares in the share capital of each of the Liable Parties (excluding the holding of preference shares); 

  

	 	(viii)	 failure to comply with a court decision to recover from any Mechel Group company more than twenty five million
US Dollars ($25,000,000) (or its equivalent in rubles/other currency at the exchange rate of the Bank of Russia as of the date of entry into force of the relevant court decision) except for non-performance of
a valid court decision due to technical problems related to making the payment within sixty (60) calendar days from the date of entry into force of the court decision, excluding any such court decisions as are contested in good faith by such
Mechel Group company; 

  

	 	(ix)	 a Financial Document is held, or sought to be held, non-existing or
invalid; 

  

	 	(x)	 the Borrower fails to procure that the Mechel Group companies exercise their corporate rights in relation to
Liable Parties or vote at general shareholders’/participants’ meetings of Liable Parties or do any other acts or made any other decisions within their control as may be required to: 

 

	 	(i)	 terminate, within one hundred and twenty (120) calendar days from the Restructuring Date, the authorities
of Khachaturov Tigran Garikovich, Darbinyan Minas Arsenovich, Shakina Anastasiya Sergeevna, Pravdina Daria Alexandrovna and Dun Ivan Ivanovich as members of the boards of directors of all Liable Parties; 

 

	 	(ii)	 ensure that there are no nominees of Other Senior Creditors or any of their affiliates or any creditor of the
Liable Parties under the Financial Debt sitting on the board of directors of any of the Liable Parties, unless such persons are elected to the board of directors of Mechel PJSC upon their nomination by minority shareholders of Mechel PJSC who, under
applicable law, may make nominations to the board of directors, provided that the Liable Parties shall do all in their power to ensure that other shareholders in Mechel PJSC cast their votes for the candidates included in the voting ballot other
than any candidate nominated by such minority shareholder. 

  
 153 

 SIGNATURES OF THE PARTIES 

Borrower 
 Chelyabinsk Metallurgical Plant Public
Joint-Stock Company 
  

	
	By:
	
	Name:
	
	Title:
	
	seal

 Credit Manager 
 VTB
Bank (public joint-stock company) 
  

	
	By:
	
	Name:
	
	Title:
	
	seal

 Pledge Manager 
 VTB
Bank (public joint-stock company) 
  

	
	By:
	
	Name:
	
	Title:
	
	seal

 Initial Creditor 
 VTB
Bank (public joint-stock company) 
  

	
	By:
	
	Name:
	
	Title:
	
	seal

  
 154 

 Initial Creditor 

VTB Bank (Europe) SE 
  

	
	By:
	
	Name:
	
	Title:
	
	seal

  
 155 

 SIGNATURES OF THE PARTIES TO ADDENDUM 1:     

Borrower 
 Chelyabinsk Metallurgical Plant Public
Joint-Stock Company 
  

	
	By:
	
	Name:
	
	Title:
	
	seal

 Credit Manager 
 VTB
Bank (public joint-stock company) 
  

	
	By:
	
	Name:
	
	Title:
	
	seal

 Pledge Manager 
 VTB
Bank (public joint-stock company) 
  

	
	By:
	
	Name:
	
	Title:
	
	seal

 Initial Creditor 
 VTB
Bank (public joint-stock company) 
  

	
	By:
	
	Name:
	
	Title:
	
	seal

  
 156 

 Initial Creditor 

VTB Bank (Europe) SE 
  

	
	By:
	
	Name:
	
	Title:
	
	seal

  
 157EX-4.6

 Exhibit 4.6 

[The copy filed herewith omits certain confidential information that is (i) not material and (ii) would be competitively harmful if publicly
disclosed. Omissions are designated as [*****].] 
 DATE: 21 APRIL 2020 

Joint-Stock Holding Company “Yakutugol” 

as Seller 1 
 and 

Mechel-Trans OOO 
 as
Seller 2 
 and 

Limited Liability Company “A-Property” 

as Purchaser 
  

 
 SALE AND PURCHASE AGREEMENT 

IN RELATION TO PARTICIPATION INTERESTS IN THE CHARTER CAPITALS OF 

ELGAUGOL LTD., ELGA-ROAD COMPANY LIMITED AND MECHELTRANSVOSTOK OOO 

 
  

  
 1 

 CONTENTS 
  

							
	 1
	  	 DEFINITIONS AND INTERPRETATION
	  	 	4	 
			
	 2
	  	 SUBJECT MATTER OF AGREEMENT
	  	 	5	 
			
	 3
	  	
PARTICIPATION INTEREST PURCHASE PRICE AND ITS PAYMENT
	  	 	6	 
			
	 4
	  	 TRANSFER OF TITLE TO PARTICIPATION INTERESTS
	  	 	8	 
			
	 5
	  	 UNDERTAKINGS
	  	 	9	 
			
	 6
	  	 WARRANTIES
	  	 	13	 
			
	 7
	  	 INDEMNITIES
	  	 	15	 
			
	 8
	  	 LIABILITY
	  	 	20	 
			
	 9
	  	 TRANSACTIONS SIMULTANEOUS
	  	 	29	 
			
	 10
	  	 CONFIDENTIALITY
	  	 	30	 
			
	 11
	  	 PUBLIC ANNOUNCEMENTS
	  	 	32	 
			
	 12
	  	 SET OFF
	  	 	32	 
			
	 13
	  	 TERM, AMENDMENT AND TERMINATION
	  	 	32	 
			
	 14
	  	 ASSIGNMENT AND SUCCESSORS
	  	 	41	 
			
	 15
	  	 PAYMENTS
	  	 	41	 
			
	 16
	  	 COSTS
	  	 	41	 
			
	 17
	  	 INVALIDITY
	  	 	42	 
			
	 18
	  	 ENTIRE AGREEMENT
	  	 	42	 
			
	 19
	  	 NOTICES
	  	 	42	 
			
	 20
	  	 GOVERNING LAW AND DISPUTE RESOLUTION
	  	 	44	 
			
	 21
	  	 MISCELLANEOUS
	  	 	44	 
			
	 22
	  	 COUNTERPARTIES AND LANGUAGE
	  	 	 46	 

  

							
	 Schedule 1
	  	 Definitions and Interpretation
	  	 	49 	
			
	 Schedule 2
	  	 Warranties
	  	 	62 	
			
	 Schedule 3
	  	 Form of the Restitution Agreement
	  	 	77 	
			
	 Schedule 4
	  	 List of Mechel Affiliates
	  	 	78 	
			
	 Schedule 5
	  	 Form of Escrow Agent (GPB (JSC)) Confirmation
	  	 	79 	
			
	 Schedule 6
	  	 Agreed Contracts
	  	 	80 	
			
	 Schedule 7
	  	 Lease and Financial Lease Agreements of the Companies
	  	 	81 	
			
	 Schedule 8
	  	 Mechanism for Paying off Permitted Receivables
	  	 	82 	

  
 2 

 This SALE AND PURCHASE AGREEMENT IN RELATION TO PARTICIPATION INTERESTS IN THE CHARTER CAPITALS OF
ELGAUGOL LTD., ELGA-ROAD COMPANY LIMITED AND MECHELTRANSVOSTOK OOO (the “Agreement”) is made in Moscow on the twenty first of April, two thousand twenty 

BETWEEN: 
  

	(1)	 JOINT-STOCK HOLDING COMPANY “YAKUTUGOL”, a joint-stock company incorporated and existing under
the laws of the Russian Federation, registered on 23 December 2002 under principal state registration number (OGRN) 1021401009057, taxpayer’s identification number (INN) 1434026980, with its registered address at: 3 Lenin ave, bld. 1,
Neryungri, the Sakha Republic (Yakutia), 678960, Russia (“Seller 1”), as represented by its management company Mechel-Mining Management Company OOO, a limited liability company incorporated and existing under the laws of the
Russian Federation, registered on 18 July 2008 under principal state registration number (OGRN) 1085410004811, taxpayer’s identification number (INN) 5410020539, with its registered address at: 1 Krasnoarmeyskaya street, Moscow, 125167,
Russia, represented by Igor Valerievich Khafizov, a Russian citizen, [*****], acting on the basis of the Charter, the resolution of the sole shareholder of Joint-Stock Holding Company “Yakutugol” dated 29 october 2009, the
resolution of the Board of Directors of Joint-Stock Holding Company “Yakutugol” dated 18 October 2013 and the Agreement on Delegation of Authorities of executive body of Joint-Stock Holding Company “Yakutugol” to
Mechel-Mining Management Company OOO as Management Company dated 21 October 2013; 

  

	(2)	 MECHEL-TRANS OOO, a limited liability company incorporated and existing under the laws of the Russian
Federation, registered on 23 November 2001 under principal state registration number (OGRN) 1027739053374, taxpayer’s identification number (INN) 7728246919, with its registered address in Moscow at: 1 Krasnoarmeyskaya street, office 134,
125167, Russia (“Seller 2”), as represented by its management company Mechel-Trans Management OOO, a limited liability company incorporated and existing under the laws of the Russian Federation, registered on 23 March
2010 under principal state registration number (OGRN) 1107746215334, taxpayer’s identification number (INN) 7714803768, with its registered address at: 1 Krasnoarmeyskaya street, office 134, 125167, Russia, represented by its general director,
Alexey Viktorovich Lebedev, a Russian citizen, [*****], acting on the basis of the Charter of Mechel-Trans Management OOO and the resolution of the sole participant of Mechel-Trans Management OOO w/n dated 12 December 2019,

 Seller 1 and Seller 2 hereinafter together referred to as the “Sellers”, and each individually – a
“Seller”; and 
  

	(3)	 LIMITED LIABILITY COMPANY “A-PROPERTY”, a limited
liability company incorporated and existing under the laws of the Russian Federation, registered on 26 December 2016 under principal state registration number (OGRN) 5167746495440, taxpayer’s identification number (INN) 7703421686, with
its registered address in Moscow at: 6 Presnenskaya embankment, bld. 2, floor 39, 123317, Moscow (the “Purchaser”), as represented by Irina Vladimirovna Belyanova, a Russian citizen, [*****], acting on the basis of the
Charter, 

 the Sellers and the Purchaser hereinafter together referred to as the “Parties”, and each individually –
a “Party”. 

  
 3 

 WHEREAS: 
  

	(A)	 As at the date hereof Seller 1 is a participant of Elgaugol Ltd., a company incorporated and existing under the
laws of the Russian Federation, principal state registration number (OGRN) 1131434000961, with its registered address at: 3 Lenin ave, bld. 1, Neryungri, the Sakha Republic (Yakutia), 678960, Russia (“Company 1”), holding a
participation interest in the charter capital of Company 1 with the par value of two billion six hundred seven million nine hundred six thousand eighty three rubles and seventy six kopecks (RUB 2,607,906,083.76), comprising fifty point nine nine
nine zero two zero two six seven three per cent. (50.9990202673%) of the charter capital of Company 1 (“Participation Interest 1”); 

  

	(B)	 As at the date hereof Seller 1 is a participant of Elga-road Company Limited, a company incorporated and
existing under the laws of the Russian Federation, principal state registration number (OGRN) 1161434050029, with its registered address at: 3 Lenin ave, bld. 1, Neryungri, the Sakha Republic (Yakutia), 678960, Russia (“Company 2”),
holding a participation interest in the charter capital of Company 2 with the par value of thirty three billion four hundred fifty million three hundred ninety thousand rubles (RUB 33,450,390,000), comprising fifty one per cent. (51%) of the charter
capital of Company 2 (“Participation Interest 2”); 

  

	(C)	 As at the date hereof Seller 2 is a participant of MecheltransVostok OOO, a company incorporated and existing
under the laws of the Russian Federation, principal state registration number (OGRN) 1102808000096, with its registered address at: office 213, 10 Mokhortova street, Tynda, Amur region, 676282, Russia (“Company 3”), holding a
participation interest in the charter capital of Company 3 with the par value of one hundred and two thousand rubles (RUB 102,000), comprising fifty one per cent. (51%) of the charter capital of Company 3 (“Participation Interest
3”), 

 Participation Interest 1, Participation Interest 2 and Participation Interest 3 are hereinafter together referred
to as the “Participation Interests”, and each individually – a “Participation Interest”; 
 Company 1, Company 2 and
Company 3 are hereinafter together referred to as the “Companies”, and each individually – a “Company”; 
  

	(D)	 In accordance with the provisions of paragraph 1 of article 21(11) of the LLC Law, the Parties hereby agree
that Seller 1 shall sell Participation Interest 1 and Participation Interest 2 and Seller 2 shall sell Participation Interest 3 to the Purchaser on the terms of this Agreement. 

IT IS HEREBY AGREED AS FOLLOWS: 
  

	1	 DEFINITIONS AND INTERPRETATION 

 

	1.1	 In this Agreement, including its Preamble and Schedules, capitalized terms and definitions shall have the
meanings ascribed to them in Part A of Schedule 1 hereto. 

  

	1.2	 The provisions of this Agreement, including its Preamble and Schedules, shall be interpreted in accordance with
Part B of Schedule 1 hereto. 

  

	1.3	 The Preamble and Schedules to this Agreement constitute an integral part hereof, and any reference to this
Agreement shall include this Agreement, the Preamble and all Schedules hereto. 

  
 4 

	2	 SUBJECT MATTER OF AGREEMENT 

 

	2.1	 For good and valuable consideration, Seller 1 shall sell Participation Interest 1 and Participation Interest 2
to the Purchaser, free from any Encumbrances (other than any Permitted Encumbrances) and together with all rights that are attached to Participation Interest 1 and Participation Interest 2 as at the date of notarization of this Agreement or may be
subsequently attached to Participation Interest 1 and Participation Interest 2, and the Purchaser shall accept Participation Interest 1 and Participation Interest 2 and agrees to pay to Seller 1 the Participation Interest 1 Purchase Price and the
Participation Interest 2 Purchase Price (each as defined below) for Participation Interest 1 and Participation Interest 2 as provided for herein. 

  

	2.2	 For good and valuable consideration, Seller 2 shall sell Participation Interest 3 to the Purchaser, free from
any Encumbrances (other than any Permitted Encumbrances) and together with all rights that are attached to Participation Interest 3 as at the date of notarization of this Agreement or may be subsequently attached to Participation Interest 3, and the
Purchaser shall accept Participation Interest 3 and agrees to pay to Seller 2 the Participation Interest 3 Purchase Price (as defined below) for Participation Interest 3 as provided for herein. 

 

	2.3	 This Agreement is a mixed contract (article 421(3) of the Russian Civil Code) and may contain elements of other
contracts (within the meaning of article 421 of the Russian Civil Code). The Parties assume their respective obligations hereunder under no coercion. 

  

	2.4	 Seller 1’s title is evidenced by: 

 

	 	(A)	 in relation to Participation Interest 1: 

 

	 	(i)	 the minutes of the general participants’ meeting of the Company dated 5 August 2013;

  

	 	(ii)	 the Incorporation Agreement in relation to the Company dated 5 August 2013; 

 

	 	(iii)	 the minutes of the extraordinary general participants’ meeting of the Company dated 4 October 2013;

  

	 	(iv)	 the minutes of the extraordinary general participants’ meeting of the Company dated 21 January 2014;

  

	 	(v)	 the minutes of the extraordinary general participants’ meeting of the Company dated 14 March 2014;

  

	 	(vi)	 the minutes of the extraordinary general participants’ meeting of the Company dated 19 September
2014; 

  

	 	(vii)	 the minutes of the extraordinary general participants’ meeting of the Company dated 9 February 2015;

  
 5 

	 	(viii)	 the minutes of the extraordinary general participants’ meeting of the Company dated 27 March 2015;

  

	 	(ix)	 the minutes of the extraordinary general participants’ meeting of the Company dated 18 January 2016;

  

	 	(x)	 the extract from the USRLE dated 21 April 2020 issued in relation to Company 1 as at the date of
notarization of this Agreement and containing information on Seller 1’s title to Participation Interest 1, as obtained by the notary public in an electronic form on the date of notarization of the transaction (this Agreement);

  

	 	(B)	 in relation to Participation Interest 2: 

 

	 	(i)	 the minutes of the founders’ meeting of the Company dated 28 December 2015; 

 

	 	(ii)	 the Incorporation Agreement in relation to the Company dated 28 December 2015; 

 

	 	(iii)	 the minutes of the extraordinary general participants’ meeting of the Company dated 14 March 2016;

  

	 	(iv)	 the extract from the USRLE dated 21 April 2020 issued in relation to Company 2 as at the date of
notarization of this Agreement and containing information on Seller 1’s title to Participation Interest 2, as obtained by the notary public in an electronic form on the date of notarization of the transaction (this Agreement).

  

	2.5	 Seller 2’s title to Participation Interest 3 is evidenced by: 

 

	 	(A)	 the resolution of the sole founder of Mechel-Trans OOO in relation to the incorporation of MecheltransVostok
OOO dated 19 January 2010; 

  

	 	(B)	 the extract from the USRLE dated 21 April 2020 issued in relation to Company 3 as at the date of
notarization of this Agreement and containing information on Seller 2’s title to Participation Interest 3, as obtained by the notary public in an electronic form on the date of notarization of the transaction (this Agreement).

  

	3	 PARTICIPATION INTEREST PURCHASE PRICE AND ITS PAYMENT 

 

	3.1	 Participation Interest Purchase Price 

 

	3.1.1	 The Parties agree that the purchase price of the Participation Interests shall be eighty nine billion rubles
(RUB 89,000,000,000) (the “Participation Interest Purchase Price”), including: 

  

	 	(A)	 the purchase price of Participation Interest 1 of fifty five billion two hundred ninety nine million rubles
(RUB 55,299,000,000) (the “Participation Interest 1 Purchase Price”); 

  
 6 

	 	(B)	 the purchase price of Participation Interest 2 of thirty three billion seven hundred million rubles (RUB
33,700,000,000) (the “Participation Interest 2 Purchase Price”); 

  

	 	(C)	 the purchase price of Participation Interest 3 of one million rubles (RUB 1,000,000) (the
“Participation Interest 3 Purchase Price”). 

  

	3.2	 Payment of Participation Interest Purchase Price 

 

	3.2.1	 The Parties agree that, in discharge of its obligation to pay the Participation Interests Purchase Price to
Seller 1, the Purchaser shall, on the date of this Agreement, transfer an amount equal to the Participation Interest 1 Purchase Price and the Participation Interest 2 Purchase Price in rubles to the Escrow Accounts under the Escrow Agreements and,
on the date of this Agreement, deliver to the Sellers the statements of the Escrow Accounts evidencing that the amount equal in aggregate to the Participation Interest 1 Purchase Price and the Participation Interest 2 Purchase Price was transferred
to the Escrow Accounts in full. 

  

	3.2.2	 Pursuant to the terms of the Escrow Agreements, the Purchaser shall do any actions required from it (to the
extent expressly provided for by the Escrow Agreements) to procure that, upon the satisfaction of the conditions specified in the Escrow Agreements, the Escrow Agent shall release and transfer by wire transfer the sums from the Escrow Accounts under
the Escrow Agreements as follows: 

  

	 	(A)	 to the Seller 1’s Account, a sum equal to the aggregate of the Participation Interest 1 Purchase Price and
the Participation Interest 2 Purchase Price (less the GPB Repayment Amount and the VTB Repayment Amount); 

  

	 	(B)	 to the GPB Pledge Account, a sum equal to the GPB Repayment Amount; 

 

	 	(C)	 to the VTB Pledge Account, a sum equal to the VTB Repayment Amount. 

 

	3.2.3	 The Parties agree that the Purchaser shall pay to Seller 2 the Participation Interest 3 Purchase Price by wire
transfer on the date of this Agreement. Seller 2 shall not pay any interest on the amount of an advance payment made in payment of the Participation Interest 3 Purchase Price for the period from the date of receipt of such advance payment from the
Purchaser. 

  

	3.2.4	 The Parties agree that a portion of the Participation Interest 1 Purchase Price and the Participation Interest
2 Purchase Price in the amount equal to the GPB Repayment Amount shall be transferred by the Escrow Agent to the GPB Pledge Account for its further transfer by Seller 1 to Bank GPB (JSC) for the purpose of, inter alia, termination of the
Company 2 Mortgage as set out in Clause 5.3. 

  

	3.2.5	 The Parties agree that a portion of the Participation Interest 1 Purchase Price and the Participation Interest
2 Purchase Price in the amount equal to the VTB Repayment Amount shall be transferred by the Escrow Agent to the VTB Pledge Account for its further transfer by Seller 1 to VTB Bank. 

 

	3.2.6	 The Purchaser’s obligation to pay the Participation Interest 1 Purchase Price and the Participation
Interest 2 Purchase Price shall include an obligation to transfer the Participation Interest 1 Purchase Price and the Participation Interest 2 Purchase Price to the Escrow 

  
 7 

	 	
Accounts and take such measures and do such actions as may be expressly required from the Purchaser under the Escrow Agreements and the Applicable Law in order to enable the Escrow Agent to make
payments as required by the Escrow Agreements (including the execution by the Purchaser of any documents that the Escrow Agent, acting reasonably and in accordance with the Escrow Agreements and the Applicable Law, may require from the Purchaser in
order to make the relevant funds transfers under the Escrow Agreements to Seller 1), and obligations as set out in Clause 3.2.8. 

  

	3.2.7	 For the avoidance of doubt, Participation Interest 1 and Participation Interest 2 shall not be pledged to
Seller 1, and Participation Interest 3 shall not be pledged to Seller 2 pending payment for them in full. 

  

	3.2.8	 The Parties hereby agree that, if (1) the Purchaser is registered in the USRLE as owner of Participation
Interest 1 and Participation Interest 2, and (2) the Escrow Agent transfers (repays) the Participation Interest 1 Purchase Price and the Participation Interest 2 Purchase Price that were earlier transferred to the Escrow Accounts from the
Escrow Accounts to the Purchaser’s account for any reason, and the Sellers did not exercise their right to repudiate as set out in Clause 13.6, the Purchaser shall (to the extent it did not pay to Seller 1 such amounts in payment of,
accordingly, the Participation Interest 1 Purchase Price and/or the Participation Interest 2 Purchase Price) pay such amounts to Seller 1 in payment of, accordingly, the Participation Interest 1 Purchase Price and/or the Participation Interest 2
Purchase Price. 

  

	3.2.9	 Any payments to be made by a Party hereunder (including, without limitation, the Participation Interest
Purchase Price) shall be made without any set-off or counterclaim (unless this Agreement provides otherwise) and free and clear of any deduction or withholding of any kind. 

 

	4	 TRANSFER OF TITLE TO PARTICIPATION INTERESTS 

 

	4.1	 The title to the Participation Interests and all rights and obligations of the Sellers as owners of the
relevant Participation Interests under the charters of the Companies and the laws and regulations of the Russian Federation (article 21(12) of the LLC Law) shall pass from the Sellers to the Purchaser upon the making of the relevant entry in the
USRLE. 

  

	4.2	 The Parties hereby confirm that all consents and approvals as required for the execution and performance of
this Agreement have been obtained, and the Sellers further confirm that the Participation Interests have been paid in full. 

  

	4.3	 In accordance with paragraph 1 of article 21(15) of the LLC Law, the Notary will, within three (3) days
after the execution and notarization of this Agreement, deliver to the Companies a notice of disposal of the Participation Interests, together with a copy of the application for the making of the relevant changes in the USRLE in such form as
required by the laws and regulations of the Russian Federation, in relation to the transfer of the Participation Interests from the Sellers to the Purchaser. 

  

	4.4	 A Seller’s obligation to transfer its Participation Interest and the Purchaser’s obligation to accept
such Participation Interest shall be deemed to be duly fulfilled and discharged as of the date of the making of the relevant entry in the USRLE in relation to the registration of transfer of title to such Participation Interest, free and clear of
any Encumbrances other than the Permitted Encumbrances, from the Seller to the Purchaser. 

  
 8 

	4.5	 If the state registration of changes in the USRLE in connection with the transfer to the Purchaser of any of
the Participation Interests is refused or suspended by the Registration Authority for any reason, the Parties shall, within five (5) Business Days after the receipt by the Parties or any of them of a notice of such refusal or suspension,
jointly do (or procure that third parties, including the relevant Company, shall do) any and all necessary actions to effect the transfer of the relevant Participation Interest from the relevant Seller to the Purchaser, including the execution and
repeated submission of necessary documents (or procure their submission by the Notary). The Parties’ obligations under this Clause 4.5 shall also be effective and apply if the state registration is subsequently refused or suspended for any
reason in relation to any repeated submission of documents. 

  

	5	 UNDERTAKINGS 

  

	5.1	 The Purchaser shall not create any Encumbrance over or dispose of any Participation Interest (or any part
thereof) at any time from the date of registering the transfer of the relevant Participation Interest to the Purchaser in the USRLE to the date the Participation Interest 1 Purchase Price and the Participation Interest 2 Purchase Price are released
by the Escrow Agent from the Escrow Accounts and/or otherwise paid to the Sellers, in each case, in accordance with this Agreement and applicable provisions of the Escrow Agreements and in any case subject to Clauses 13.6 and 13.7.

  

	5.2	 The Purchaser shall, within ten (10) Business Days after the Participation Interests Transfer Date (and in
any case subject to Clause 13.7), take all measures within the Purchaser’s control in order to procure that Company 1 shall do any actions required from it to terminate the KGOK Share Pledge in full, unless such actions have already been done
by Company 1 before the Transfer Date. 

  

	5.3	 The Parties shall, within (i) sixty (60) calendar days after the Participation Interests Transfer Date
(and in any case subject to Clause 13.7), in relation to the Company 3 Permitted Suretyships; (ii) thirty (30) calendar days after the Participation Interests Transfer Date (and in any case subject to Clause 13.7), in relation to all other
Permitted Suretyships, unless, in each case, another period of time is agreed between the Mechel Group, the Purchaser, Bank GBP (JSC) and VTB Bank, (iii) five (5) calendar days after the Participation Interests Transfer Date (and in any case
subject to Clause 13.7), in relation to the Permitted Encumbrances, (iv) thirty (30) calendar days after the Participation Interests Transfer Date (and in any case subject to Clause 13.7), in relation to the Sublease Agreements (the
“Termination Term”), procure that the Permitted Suretyships, the Sublease Agreements and the Permitted Encumbrances, respectively, shall be terminated on the terms satisfactory to the Sellers and the Purchaser.

  

	5.4	 The Purchaser shall, within ninety (90) calendar days after the Participation Interests Transfer Date (and
in any case subject to Clause 13.7), procure, and do any other actions as may be required for, the termination of the use (including actual use) by the Companies of the Trademarks owned by the Mechel Group, and shall procure that each of the
Companies shall enter into a licence termination agreement in relation to such Company’s licence to use the relevant Trademark with the trademark holder within the Mechel Group (and the Sellers shall procure that the relevant trademark holder
shall enter into with such Company) (provided that 

  
 9 

	 	
such licence termination agreement shall provide that the relevant Company’s licence to use such Trademark shall be terminated as of the date of execution of such licence termination
agreement), and procure the registration in the USRLE of changes in information about legal entity in relation to Company 3, namely a change in name in relation to Company 3 by deleting the word “Mechel” from its name. In case of a breach
of the provisions of this Clause 5.4, the Purchaser shall pay to the relevant Seller (as applicable, depending on which one of the Companies continued using the Trademarks) a penalty fee in the amount of [*****] for each day of delay. Payment of
such penalty fee shall not release the Purchaser from its obligations under this Clause 5.4. For the avoidance of doubt, the penalty fee under this Clause 5.4 shall not be an exclusive penalty fee, and the Sellers may, in addition to payment of the
penalty fee, claim any damages suffered by them. If the Trademarks (or any of them) have been used by any of the Companies prior to the Participation Interests Transfer Date either (i) in the absence of an agreement with the trademark holder,
or (ii) on the basis of an agreement with the trademark holder but no consideration for the use of such Trademarks was paid by the relevant Company thereunder to the trademark holder by the date of this Agreement, the Sellers shall,
notwithstanding any provisions of this Agreement to the contrary, indemnify the Purchaser for any and all losses incurred by it in connection with any claim by the relevant trademark holder against any of the Companies, whether in connection with
the use of the Trademarks (or any of them) in the absence of an agreement or payment of licence fees under the relevant agreement. The Sellers shall procure that each licence termination agreement in relation to the relevant Company’s licence
to use each Trademark, as specified in this Clause 5.4, is submitted for registration to the competent registration authorities. The Purchaser shall not be liable for, and shall not pay any compensation to the Sellers (or any of them) in connection
with, a non-submission or non-registration of any licence termination agreement in relation to the relevant Company’s licence to use each Trademark, provided that
the Companies have ceased to actually use the Trademarks within the term specified in this Clause 5.4. 

  

	5.5	 If any claim is made against any of the Sellers (or their representatives in the Companies’ management
bodies) or the Companies by the Governmental Authorities or a third party in relation to Company 1’s, Company 2’s or Company 3’s business as conducted prior to the Participation Interests Transfer Date or the Participation Interest 1
and Participation Interest 2 Transfer Date (where the right to partially terminate is exercised under Clause 13.7), the Purchaser shall, and shall procure that the relevant Company shall, provide to Seller 1, Seller 2 and their representatives in
the Companies’ management bodies all reasonable assistance in accordance with the Applicable Law to protect their rights and legitimate interests as against the Governmental Authorities or other third parties. The Purchaser may deliver to the
Seller its written proposals as to the settlement of such claims by the Governmental Authorities or third parties. Each Seller shall take all actions within its control to settle such claims by Governmental Authorities or third parties as so
proposed by the Purchaser. 

  

	5.6	 The Sellers shall procure that the following documents are available at the registered address or another place
of business of the relevant Companies, as evidenced by a certificate signed by the person exercising the functions of the sole executive body of the relevant Company, on the Participation Interests Transfer Date or the Participation Interest 1 and
Participation Interest 2 Transfer Date (where the right to partially terminate is exercised under Clause 13.7): 

  

	 	(A)	 the Investment Declaration dated 17 July 2015; 

  
 10 

	 	(B)	 the application for the inclusion of Company 1 in the register of participants of regional investment projects
No. 1033 dated 17 July 2015 (with appendixes); 

  

	 	(C)	 the Order of the Ministry of Economy of the Sakha Republic (Yakutia) No. 128-

 dated 7 September 2015 on inclusion of Company 1 in the register of participants of regional investment projects; 

  

	 	(D)	 the application for alteration of investment declaration
No. 42-09/5215 dated 6 December 2016 (with appendixes); 

  

	 	(E)	 the Investment Declaration dated 2 December 2016; 

 

	 	(F)	 the Comprehensive Opinion in relation to Company 1’s application
No. 42-09/5215 dated 6 December 2016 for alteration of Company 1’s investment declaration to reflect changes in the terms and conditions of implementation of regional investment project, as
approved on 8 August 2017; 

  

	 	(G)	 the information letter from the first deputy minister of investment and business development of the Sakha
Republic (Yakutia), A.S. Zagorenko, “On amendment of investment declaration” No.

-01-4568 dated 14 August 2017; 

  

	 	(H)	 the application for alteration of investment declaration No. 1-131-05/5057 dated 3 July 2017 (with appendixes); 

  

	 	(I)	 the Investment Declaration dated 3 July 2017; 

 

	 	(J)	 the Order of the Ministry of Economy of the Sakha Republic (Yakutia) No.

-192/

 dated 11 August 2017 on alteration of investment declaration to reflect changes in the terms and conditions of implementation of regional investment project of Company 1; 

 

	 	(K)	 all design, working and other technical documentation developed under the General Contractor Agreement for
Design and Survey Works No.

.00.01-17-10-

 dated 1 November 2010 between Seller 1 and Mechel-Engineering LLC, including the documentation that was developed thereunder prior to the replacement of the customer thereunder (Customer Replacement Agreement dated
23 October 2013 in relation to General Contractor Agreement for Design and Survey Works No.

.00.01-17-10-

 dated 1 November 2010) and that is required for the subsequent commissioning of the facilities constructed thereunder, and all other design, geological, engineering and other documents in the possession of the
Companies, the Sellers or any other person within the Mechel Group relating to the development and operation of the Elga coal mine, including design and other documentation relating to the construction and operation of an access railroad to the Elga
coal mine from the Ulak station to the Elga station; 

  

	 	(L)	 any other documents in the possession of the Companies or the Seller or any other person within the Mechel
Group which any of the Company is required to have and/or keep in accordance with the Applicable Law. 

  

	5.7	 The Seller shall procure that, from the date of this Agreement to the date of the respective resolution of each
of the Companies’ competent management bodies under Clause 5.8, the 

  
 11 

	 	
current members of the Companies’ management bodies (including their respective boards of directors) as at the date of this Agreement and persons exercising the functions, powers and
authorities of the Companies’ management bodies (including the management company of each of the Companies and the sole executive body of each of the Companies) nominated by a Seller (as listed in Clause 5.8), shall not do any actions in their
capacity as management board of the Companies or members of the management bodies of the Companies other than with the Purchaser’s prior consent or request/instruction in writing (provided that, in doing so, the Purchaser shall act reasonably),
provided that such request/instruction shall not be inconsistent with the Applicable Law, the constituent and internal documents of the Companies, the standard business practices, the principles of reasonableness and good faith (the
“Purchaser’s Instructions”), or, in the absence of the relevant Purchaser’s Instructions, other than as may be required by mandatory provisions of the Applicable Law, their duty to act reasonably and in good faith for the
benefit of the Companies or the provisions of this Agreement. The Purchaser’s Instructions may be issued on behalf of the Purchaser by Alexander Sergeevich Isaev, [*****], or any other person duly nominated by the Purchaser. The Sellers’
obligations under this Clause 5.7 shall immediately terminate in case of the Purchaser’s default under its obligations under Clause 5.8. 

  

	5.8	 The Purchaser shall, within ten (10) Business Days after its registration in the USRLE as owner of the
relevant Participation Interest, procure that the competent management bodies of the relevant Company pass their resolutions terminating the powers and authorities of members of the management bodies of such Company (including its board of
directors) and persons exercising the functions, powers and authorities of the Companies’ management bodies (including the management company of each of the Companies and the sole executive director of each of the Companies) nominated by a
Seller, including the persons as listed below, and (in connection with the termination of powers and authorities of persons to whom the powers of the sole executive body of each of the Companies were delegated) that the duly executed applications
for the making of the relevant changes in information about legal entity as contained in the USRLE in relation to each of the Companies, shall be filed with the competent tax authorities when due: 

 

	 	(A)	 members of the board of directors of Company 1: Igor Valerievich Khafizov, Pavel Viktorovich Shtark, Gordey
Georgievich Korlyakov, Irina Nikolaevna Ipeeva, Viktor Dmitrievich Danilov, Larissa Petrovna Salikova; 

  

	 	(B)	 members of the board of directors of Company 2: Dmitry Anatolievich Shura, Alexander Gennadievich Ovchinnikov,
Viktor Dmitrievich Danilov, Natalia Timofeevna Girgeeva; 

  

	 	(C)	 members of the board of directors of Company 3: Alexey Dmitrievich Makartsov, Mikhail Valerievich Silin, Dmitry
Anatolievich Shura, Rinat Rashitovich Mukhamediarov, Svetlana Viktorovna Grishkovskaya; 

  

	 	(D)	 the person to whom the powers of the sole executive body of Company 1 were delegated: Mechel-Mining Management
Company OOO; 

  

	 	(E)	 the person to whom the powers of the sole executive bodyr of Company 2 were delegated: Mechel-Mining Management
Company OOO; 

  
 12 

	 	(F)	 the person to whom the powers of the sole executive body of Company 3 were delegated: Mechel-Trans Management
OOO. 

  

	5.9	 If the Purchaser fails to perform its obligations under Clause 5.8, the Purchaser shall pay to each of the
Sellers a penalty fee in the amount of [*****] for each day of delay but not more than [*****] to each of the Sellers and, accordingly, [*****] to both Sellers. Payment of the penalty fee shall not release the Purchaser from its obligations. For the
avoidance of doubt, the penalty fee under this Clause 5.9 shall not be an exclusive penalty fee, and the Sellers may, in addition to payment of the penalty fee, claim any damages suffered by them. 

 

	5.10	 Provided that the Participation Interests Transfer Date has occurred (in any case, subject to Clause 13.7), and
if so requested by the Purchaser, the Sellers shall, at the cost of the Purchaser or the relevant Company, provide their reasonable assistance in relation to the execution of documents (e.g., KC-11 certificates of acceptance of completed
construction, KC-14 certificates of acceptance of completed construction by the acceptance commission, an addendum to lease agreement No. 37 dated 21 April 2010 (as amended by addendum dated 25 April 2016) in relation to the
replacement of Seller 1 as lessee by Company 2) as may be required by the Applicable Law for the purpose of the proper completion of construction, acceptance into operation and perfection of rights of the relevant Company to the access railroad to
the Elga coal mine from the Ulak station to the Elga station, if the Purchaser and the relevant Company, acting reasonably, are not able to execute such documents without the Seller’s assistance, and provided that the assistance requested by
the Purchaser shall, in any event, be consistent with the Applicable Law and shall be without prejudice to the interests of the Sellers and/or the Sellers’ signatories. 

 

	5.11	 The procedure for settlement of the Permitted Receivables by the Sellers and the Mechel Group companies shall
be as set out in Schedule 8 hereto. 

  

	6	 WARRANTIES 

  

	6.1	 Each Party hereby warrants to the other, within the meaning of Article 431.2 of the Russian Civil Code, that as
at the date of this Agreement each of the warranties set out in Part A of Schedule 2 (Warranties) hereto (the “General Warranties”) is true and accurate. 

 

	6.2	 Seller 1 hereby warrants to the Purchaser, within the meaning of Article 431.2 of the Russian Civil Code, that
as at the date of this Agreement each of the Seller 1 Title Business Warranties is true and that, immediately prior to the transfer of title to Participation Interest 1 or Participation Interest 2 (as the case may be) to the Purchaser hereunder,
each of the Seller 1 Title Business Warranties (in relation to such Participation Interest) will be true and accurate by reference to the then existing facts and circumstances, as if given on the date hereof and as if any implied reference in the
Seller 1 Title Business Warranties to the date of this Agreement was replaced with a reference to such time. 

  

	6.3	 Seller 2 hereby warrants to the Purchaser, within the meaning of Article 431.2 of the Russian Civil Code, that
as at the date of this Agreement each of the Seller 2 Title Business Warranties is true and that, immediately prior to the transfer of title to Participation Interest 3 to the Purchaser hereunder, each of the Seller 2 Title Business Warranties will
be true and accurate by reference to the then existing facts and circumstances, as if given on the date hereof and as if any implied reference in the Seller 2 Title Business Warranties to the date of this Agreement was replaced with a reference to
such time. 

  
 13 

	6.4	 Seller 1 hereby warrants to the Purchaser, within the meaning of Article 431.2 of the Russian Civil Code, that
as at the date of this Agreement each of warranties set out in Part B (other than the warranty in paragraph 2.6 of Part B that, for the avoidance of doubt, relates to the Seller 2 Business Warranties) of Schedule 2 (Warranties) hereto (the
“Seller 1 Business Warranties”), is true and accurate. 

  

	6.5	 Seller 2 hereby warrants to the Purchaser, within the meaning of Article 431.2 of the Russian Civil Code, that
as at the date of this Agreement each of warranties set out in Part B (other than the warranties in paragraphs 2.4, 2.5, 5, 6 and 16.5 of Part B which, for the avoidance of doubt, relate to the Seller 1 Business Warranties) of Schedule 2
(Warranties) hereto (the “Seller 2 Business Warranties”), is true and accurate. 

  

	6.6	 Neither Party shall have the right, including on the basis of Article 431.2(2) of the Russian Civil Code, to
terminate (unilaterally refuse to perform, in full or in part) this Agreement if any of the Warranties given by the other Party is untrue or inaccurate. For the purpose of Article 431.2(2) of the Russian Civil Code, the Parties agree that a breach
of Warranties shall not constitute a material breach of this Agreement. 

  

	6.7	 Given the distinctive characteristics of a Participation Interest as the subject of a sale and purchase
transaction, and that it is agreed by the Parties that damages shall be their only remedy if any of the Warranties is untrue or inaccurate, the provisions of chapter 30 (Sale and Purchase) of the Russian Civil Code relating to the quality of goods,
including Articles 469 – 477 (both inclusive) of the Russian Civil Code shall not apply to the relations of the Parties hereunder. The Seller shall not give to the Purchaser any warranties as to the quality of the Participation Interests.

  

	6.8	 If any of the Seller 1 Business Warranties or the Seller 2 Business Warranties is expressly limited by the
Sellers’ knowledge of any specific events, facts and/or circumstances (e.g., by reference to “the Sellers’ best knowledge” or a similar expression), then only the Seller who as at the date of this Agreement had the actual
knowledge of the relevant Seller 1 Business Warranties or the Seller 2 Business Warranties being untrue or inaccurate shall be liable for a breach of such Seller 1 Business Warranty or the Seller 2 Business Warranty. The Seller who did not have the
knowledge of a Seller 1 Business Warranty or a Seller 2 Business Warranty being untrue or inaccurate shall be released from liability for the inaccuracy of such Seller 1 Business Warranty or such Seller 2 Business Warranty. 

 

	6.9	 Subject to limitations in Clause 8, Seller 1 shall compensate the Purchaser for any damages it incurred as a
result of any of the Seller 1 Business Warranties or any General Warranties given by Seller 1 being untrue. 

  

	6.10	 Subject to limitations in Clause 8, Seller 2 shall compensate the Purchaser for any damages it incurred as a
result of any of the Seller 2 Business Warranties or any General Warranties given by Seller 2 being untrue. 

  

	6.11	 The Purchaser shall compensate the Sellers for any damages it incurred as a result of any of the General
Warranties given by the Purchaser being untrue. 

  

	6.12	 Unless Clauses 6.2 and 6.3 expressly provide otherwise, the Parties confirm that the Warranties shall be deemed
to be given as at the date of this Agreement by reference to the facts and circumstances then existing, and, for the avoidance of doubt, none of the Warranties shall be construed or interpreted as a warranty given by reference to the facts and
circumstances arising after the date hereof. 

  
 14 

	6.13	 In executing the Transaction, none of the Parties shall give or rely on any warranties, other than the
Warranties, within the meaning of Article 431.2 of the Russian Civil Code, including any warranties by a third party. 

  

	7	 INDEMNITIES 

  

	7.1	 Purchaser Losses 

 

	7.1.1	 In accordance with Article 406.1 of the Russian Civil Code, provided that the Participation Interests Transfer
Date or the Participation Interest 1 and Participation Interest 2 Transfer Date (where the right to partially terminate is exercised under Clause 13.7) has occurred, and subject to applicable provisions of Clause 8, Seller 1 shall indemnify the
Purchaser at its request for any and all losses incurred or to be incurred by Company 1 (the “Purchaser RIP Losses”) as a result of the occurrence of the following circumstance (the “Purchaser RIP Losses Trigger
Event”), in the amount to be determined under Clauses 7.1.4-7.1.5: 

 Company 1 ceases to be a participant
of the Regional Investment Project pursuant to a decision of the competent governmental authority and incurs a liability(-ies) to pay tax or a tax claim is made against Company 1 (including, without
limitation, if an additional tax assessment or a liability to pay a penalty fee is imposed on Company 1 and/or Company 1 is held liable for a tax offence), provided that each of the following conditions is satisfied: (1) such tax liabilities of
or tax claims against Company 1 relate to a tax period preceding the date of this Agreement and have been incurred by or made against Company 1 in connection with its ceasing to be participant of the Regional Investment Project, (2) the
relevant decision of the competent tax authority has become effective and was issued following an on-site or desk audit carried out in respect of Company 1 in relation to a tax period preceding the date of
this Agreement (a “Tax Audit”), and (3) either (i) there is an outstanding binding request or ground for payment by Company 1 of the relevant amount (including a Final Court Decision), or (ii) the relevant amount was
debited from Company 1’s bank account as a result of exercise by the relevant authorities of their direct debit rights, in each case, in satisfaction or repayment of the request or liabilities as set out above in this Clause. For the avoidance
of doubt, any losses incurred or to be incurred by Company 1 or any other losses of Company 1 shall not constitute the Purchaser RIP Losses and shall not be subject to indemnification by Seller 1 under this Clause 7.1.1, where such losses have
arisen as a result of the occurrence of any circumstances within Company 1’s control after the date of this Agreement. Following the completion of a Tax Audit, the Purchaser shall, at the request of Seller 1, procure that Company 1 shall issue
to Seller 1 a power of attorney authorizing Seller 1 to challenge the results of the Tax Audit on the terms of Clause 8.3.6. 
  

	7.1.2	 The Parties agree that Company 1’s losses and damages in the form of lost tax credit in respect of any
future periods shall not be included in the Purchaser RIP Losses, and the Purchaser may not claim from any of the Sellers any such losses or damages incurred by any Company. 

 

	7.1.3	 Other than the Purchaser RIP Losses arising as a result of the occurrence of a Purchaser RIP Losses Trigger
Event out of any circumstances, events and/or facts occurring on or before the date of this Agreement, and other Purchaser Losses, the Sellers shall not assume any 

  
 15 

	 	
indemnity obligations in relation to any other losses incurred by the Purchaser and/or any Company after the date of this Agreement in accordance with Article 406.1 of the Russian Civil Code,
unless otherwise set out in Clause 7.1. 

  

	7.1.4	 Subject to Clauses 7.1.5 and 7.1.8, the amount of the Purchaser RIP Losses to be indemnified by Seller 1 as a
result of the occurrence of a Purchaser RIP Losses Trigger Event shall be determined as follows: 

 where a Purchaser RIP
Losses Trigger Event occurs, the amount of the Purchaser RIP Losses shall be deemed to be equal to the amount of actual tax liabilities of Company 1 paid or to be paid by it in such cases and subject to such conditions as set out in Clause 7.1.1.

 The amount of actual tax liabilities of Company 1 shall be deemed to be equal to the amount of taxes, fines and penalty fees to be paid by
Company 1 as a result of a Tax Audit, and shall take into account: 
  

	 	(i)	 the amount of losses incurred in the previous tax periods that may, in accordance with applicable tax laws and
regulations, be applied to reduce the income tax base, including an additional tax base identified as a result of the Tax Audit; 

  

	 	(ii)	 the amount of any tax overpayment as identified by the tax authorities in the course of the Tax Audit,
including any overpaid income tax as a result of additional tax assessment imposed by the tax authorities and included in expenses in accordance with applicable tax laws and regulations. 

 

	7.1.5	 The Parties agree that the aggregate amount of the Purchaser RIP Losses subject to indemnification in
connection with the occurrence of a Purchaser RIP Losses Trigger Event under Clause 7.1.1 shall not exceed one billion nine hundred million rubles (RUB 1,900,000,000), and, provided that the Final Court Decision is issued in favour (in full or in
part) of Company 1 as claimant, the amount of the Purchaser RIP Losses to be so indemnified shall be reduced by the amount of income tax to which case No. A58-6065/2019 pertains (the
“Litigation”), i.e. the amount of income tax to be refunded or repaid to Company 1 under such Final Court Decision (the “RIP Limitation of Liability”). 

For the avoidance of doubt, Seller 2 shall not be liable for the Purchaser RIP Losses in connection with the occurrence of a Purchaser RIP
Losses Trigger Event. 
 Provided that, if (1) Seller 1 paid to the Purchaser the amount of the Purchaser RIP Losses subject to Clauses
7.1.5 and 7.1.8 prior to the issuance of a Final Court Decision in relation to the Litigation, (2) the Final Court Decision was then issued in favour (in full or in part) of Company 1, and (3) the amount of the Purchaser RIP Losses paid by
Seller 1 to the Purchaser prior to the issuance of the Final Court Decision in relation to the Litigation exceeds the RIP Limitation of Liability as determined taking into account the amount of income tax to be refunded or repaid to Company 1
pursuant to an award made in the Litigation (as described above in this Clause), the Purchaser shall, within ten (10) Business Days after the date of such Final Court Decision, repay to Seller 1 a portion of the amount of Purchaser RIP Losses
that was received by the Purchaser from Seller 1 in excess of the RIP Limitation of Liability. 

  
 16 

	7.1.6	 The Parties agree that, upon the occurrence of a Purchaser RIP Losses Trigger Event and provided that the
relevant amount was debited, as set out in Clause 7.1.1, from Company’s bank account as a result of exercise by the relevant authorities of their direct debit rights, Seller 1 shall, at the Purchaser’s request and within ten
(10) Business Days after such request, pay the amount of the Purchaser RIP Losses to the Purchaser before the issuance of a Final Court Decision. 

For the avoidance of doubt, the Purchaser may claim indemnification of the Purchaser RIP Losses more than once, provided that the relevant
Purchaser RIP Losses Trigger Event has occurred. If it is held in the Final Court Decision that the decision of the tax authorities terminating Company 1’s status as participant of the Regional Investment Project is illegal and the decision
issued by the tax authorities upon completion of the Tax Audit is unlawful in full (or in the relevant part), the Purchaser shall, within ten (10) Business Days after Seller 1’s request, pay to Seller 1 the amount (the relevant portion) of
the Purchaser RIP Losses earlier paid by Seller 1 to the Purchaser and the amount of interest actually awarded to Company 1 as a result of such decision issued by the tax authorities upon completion of the Tax Audit being held unlawful. For the
avoidance of doubt, no interest shall accrue or be payable by the Purchaser on the amount of the Purchaser RIP Losses. In case of a delay in payment of any sum under this Clause 7.1.6, the defaulting Party shall, within ten (10) Business Days
after request, pay to the other Party to whom such sum was due interest accruing on the outstanding amount under Article 395 of the Russian Civil Code for each day of delay. 
  

	7.1.7	 In accordance with Article 406.1 of the Russian Civil Code, provided that the Participation Interests Transfer
Date or the Participation Interest 1 and Participation Interest 2 Transfer Date (where the right to partially terminate is exercised under Clause 13.7) has occurred, and subject to applicable provisions of Clause 8, Seller 1 shall indemnify the
Purchaser at its request for any and all losses incurred or to be incurred by Company 1 and/or Company 2, and Seller 2 shall indemnify the Purchaser at its request for any and all losses incurred or to be incurred by Company 3, as a result of the
occurrence of the following circumstances: 

  

	 	(A)	 members of the board of directors of any Company nominated by a Seller vote FOR the resolution of the board of
directors of such Company approving a transaction in which the Seller, any of its Affiliates or any of the Mechel Group companies is interested, or the execution or performance (other than the performance of the Agreed Contracts) by a Company of a
transaction in which the Seller, any of its Affiliates or any of the Mechel Group companies, or a member of the board of directors of any Company nominated by a Seller and/or the person exercising the functions of the sole executive body of a
Company who is nominated by a Seller, or any of their respective Affiliates, (together, the “Interested Persons”) is interested, at any time from the date of this Agreement to the Participation Interests Transfer Date or (if later,
in relation to the relevant Company) the date as of which, subject to Clause 5.8, the powers and authorities of the members of the board of directors of such Company or the person exercising the functions of the sole executive body of the Company
shall be terminated, other than any transaction that is contemplated by the Agreed Contracts or any transaction to be approved or executed pursuant to this Agreement or any transaction approved or executed in accordance with the Purchaser’s
Instructions (without prejudice to any claims by the Sellers to the Purchaser for a breach of this Agreement) (the “Purchaser Transactions Losses Trigger Event”). 

  
 17 

 The amount of the Purchaser Losses to be indemnified in connection with the relevant
transactions under this Clause 7.1.7(A) (the “Purchaser Transactions Losses”) shall be deemed to be equal to the amount of costs and expenses incurred or to be incurred by the relevant Company in connection with such transaction or
transactions less any proceeds received by such Company thereunder. 
 The provisions in this
sub-Clause (A) shall not apply where, upon the expiry of the term specified in Clause 5.8, and provided that the Purchaser failed to perform its obligations under Clause 5.8 within the term specified
therein, a Company has executed or performed (excluding the performance of the Agreed Contracts), within the term as specified in this sub-Clause (A), a transaction in which an Interested Person is interested,
provided that each of the following conditions is satisfied: 
  

	 	(i)	 the execution or performance of such transaction was reasonably required by such Company to avoid the
incurrence by it of a damage or procure its compliance with the mandatory provisions of the Applicable Law, licences or other obligations of such Company; 

  

	 	(ii)	 such transaction is an arm’s length transaction; 

 

	 	(iii)	 in approving and executing the transaction, the members of the board of directors and the sole executive body
of the Company acted reasonably and in good faith; 

  

	 	(B)	 a Company incurs a liability to pay to any person, or a claim is made against a Company by any person for
payment of, any sums in repayment of the Permitted Payables (or any part thereof), including, without limitation, any and all taxes, fines, penalty fees, costs, expenses, losses or liabilities (the “Purchaser Permitted Payables Losses
Trigger Event”, and together with a Purchaser RIP Losses Trigger Event and a Purchaser Transactions Losses Trigger Event, the “Purchaser Losses Trigger Event”). 

The amount of the Purchaser Losses to be indemnified in connection with the relevant Permitted Payables under this Clause 7.1.7(B) (the
“Purchaser Permitted Payables Losses”, and together with the Purchaser RIP Losses and the Purchaser Transactions Losses, the “Purchaser Losses”) shall be deemed to be equal to the amount of costs and expenses
incurred or to be incurred by the relevant Company in connection with or for the purpose of repayment of the Permitted Payables (or any part thereof), provided that the aggregate amount of losses to be indemnified by the Sellers under this Clause
7.1.7(B) shall be reduced by the sums actually received by the relevant Company in repayment of the Permitted Receivables (such reduced sum to be indemnified, the “Net Indemnified Amount”), and if a Company receives a sum in
repayment of the Permitted Receivables after the Sellers (or any of them) provided an indemnification to the Purchaser under this Clause 7.1.7(B), the Purchaser shall repay to the Sellers (or the relevant Seller) the amount of any such
indemnification payments earlier made by the Sellers (or such Seller) to the Purchaser in relation to the Purchaser Permitted Payables Losses to the extent exceeding (taking into account all other sums paid by the Sellers to the Purchaser under this
Clause 7.1.7(B) and all payments received by the Companies in repayment of the Permitted Receivables) the Net Indemnified Amount. 

  
 18 

	7.1.8	 The relevant Seller shall indemnify the Purchaser for the Purchaser Losses in the amount equal to a portion of
the Purchaser Losses to be calculated in accordance with Clauses 7.1.4 - 7.1.7 pro rata to the Purchaser’s participation interest in the Company in respect of which such Purchaser Losses were incurred, unless the Purchaser has made any
cash contributions to the assets of the relevant Company in order to finance any costs and expenses incurred or to be incurred by the Company in connection with the occurrence of a Purchaser Permitted Payables Losses Trigger Event.

  

	7.1.9	 All terms and definitions relating to taxation as used herein, including those used in this Clause 7.1 in the
definition of the Purchaser Losses, shall have the meanings ascribed to them in the Tax Code of the Russian Federation. 

  

	7.1.10	 Notwithstanding any provision of this Agreement to the contrary, the relevant Seller shall indemnify the
Purchaser for the Purchaser Permitted Payables Losses within three (3) Business Days after the Purchaser’s relevant Claim or request. 

  

	7.2	 Seller Losses  

 

	7.2.1	 In accordance with Article 406.1 of the Russian Civil Code, the Purchaser shall indemnify the relevant Seller
at its request for any and all losses incurred or to be incurred by the Seller and/or any of its Affiliates (including the Mechel Group companies) and/or Indemnitees (the “Seller Losses”) as a result of the occurrence of the
following circumstances (the “Seller Losses Trigger Event”), in the amount to be determined under Clause 7.2.2: 

  

	 	(A)	 in relation to each Seller: 

 

	 	(i)	 a claim is made by the Purchaser (or any of its Affiliates) or its nominee in the management bodies of the
relevant Company, including any such nominee acting on behalf and in the interests of the Company, against any Seller (or any of its Affiliates), a person Controlling any Seller, a person to whom the function of the sole executive body of the
Company have been delegated as nominated by a Seller, or any member of the board of directors of the Company nominated by a Seller (the “Seller Indemnitees”), in connection with any action or omission done by any of the Seller
Indemnitees as a participant, Controlling person, member of the board of directors of the Company, person exercising the functions of the sole executive body or employee of the Company at any time prior to the date of this Agreement, including a
claim for the Company’s losses under Article 53.1 of the Russian Civil Code or Article 67.3(3) of the Russian Civil Code (however, without prejudice to any claim by the Purchaser to the Sellers for a breach of this Agreement, subject to
limitations of liability under Clause 8); 

  

	 	(ii)	 a claim, demand or suit is made or filed by the Purchaser (or any of its Affiliates or nominees in the
management bodies of the relevant Company) in relation to the time period after the date of this Agreement against a member of the management bodies (including members of the board of directors) of the Companies nominated by a Seller and/or a person
to whom the functions of the sole executive body of a Company have been delegated as nominated by a Seller, in connection with the performance by them of their functions as members of the board of directors or sole executive bodies of the Companies,

  
 19 

	 	
including the voting for any resolution of the boards of directors of the Companies, except where such claim, demand or suit was made or filed as a result of such persons acting
(i) otherwise than in good faith or (ii) contrary to the Applicable Laws or (iii) contrary to the Purchaser’s Instructions. 

  

	7.2.2	 The amount of the Seller Losses to be indemnified by the Purchaser as a result of the occurrence of a Seller
Losses Trigger Event shall be determined as follows: 

  

	 	(A)	 in the case of the occurrence of a Seller Losses Trigger Event under Clause 7.2.1(A), the Seller Losses shall
be deemed to be equal to the amount of all costs and expenses actually incurred or to be incurred by the Seller Indemnitees or other person a claim against whom, as set out in Clause 7.2.1(A), gives rise to the Purchaser’s indemnification
obligations, in satisfaction of claims made against them in cases provided for in Clause 7.2.1(A), and all legal costs and other reasonable documented costs and expenses paid by such persons to defend themselves against such claims.

 For the avoidance of doubt, any and all Seller Losses incurred or to be incurred by an Affiliate of a Seller (including
the Mechel Group companies) and/or a Seller Indemnitee shall be deemed to constitute the Seller Losses incurred or to be incurred directly by the Seller and shall be subject to indemnification on a “ruble for ruble” basis. 

 

	8	 LIABILITY 

  

	8.1	 General 

  

	8.1.1	 For any failure to perform or duly perform the respective obligations hereunder, the Parties shall be liable as
provided for by this Agreement and, unless otherwise stated herein, the laws and regulations of the Russian Federation. 

  

	8.1.2	 For the avoidance of doubt, the Parties shall not be liable for any lost profits hereunder.

  

	8.1.3	 The Parties agree that, in accordance with Article 396(2) of the Russian Civil Code, where a Party fails to
perform and/or duly perform its obligations hereunder (including, without limitation, an obligation to refrain from certain action (restrictive covenant)), the other Party may (in addition to its other remedies under this Agreement and the
Applicable Law, including default interest and damages) claim the equitable relief of specific performance or injunction (as applicable), without prejudice to any limitations of liability under Clause 8. 

 

	8.1.4	 The provisions of Clauses 8.2 – 8.9 shall limit the liability of the Parties hereunder in such cases and
in the manner as set out therein. 

  

	8.2	 Sellers’ Liability 

 

	8.2.1	 The Sellers’ obligations and liabilities under the Transactions Documents shall be several (and not joint
or joint and several). Each of the Sellers shall not be liable for the other Seller’s failure to perform or duly perform its obligations hereunder or, for the avoidance of doubt, any losses resulting from a claim, demand, other action or
omission of the other Seller (or any of its Affiliates). 

  
 20 

	8.2.2	 The Seller shall have no liability in respect of any Claim unless a notice of such Claim is served on the
Seller: 

  

	 	(A)	 by the Purchaser (or its authorized representative); 

 

	 	(B)	 in writing in accordance with Clause 19; 

 

	 	(C)	 together with reasonably detailed information known to the Purchaser and the Companies; 

 

	 	(D)	 in the case of: 

  

	 	(i)	 a Claim under the Seller 1 Title Business Warranties and/or the Seller 2 Title Business Warranties in relation
to the respective Participation Interest, subject to the completion of registration of transfer of such Participation Interest to the Purchaser in the USRLE; or 

 

	 	(ii)	 any other Claim (other than Claims referred to in Clause 8.2.2(D)(i)), subject to the completion of
registration of transfer of the Participation Interests (or, where this Agreement was partially repudiated under Clause 13.7, Participation Interest 1 and Participation Interest 2) to the Purchaser in the USRLE, 

and, 
  

	 	(E)	 with a reference to the relevant provision of this Agreement giving rise to such Claim or the applicable
provision of the Applicable Law; 

  

	 	(F)	 to the extent reasonably practicable in the circumstances, together with the serving Party’s estimate of
losses to be recovered in connection with such Claim (provided that such estimate shall not be a final estimate); and 

  

	 	(G)	 within [*****] calendar days after the Purchaser became aware of the relevant circumstance giving rise to such
Claim, but in any event within: 

  

	 	(i)	 in the case of a Claim in connection with the occurrence of a Purchaser RIP Losses Trigger Event, [*****] after
the date of this Agreement; 

  

	 	(ii)	 in the case of a Claim under the Warranties specified in section 14 of Part B (Business Warranties) of Schedule
2 (Warranties), [*****] after the date of this Agreement; 

  

	 	(iii)	 in the case of a Claim under the Seller 1 Title Business Warranties and/or the Seller 2 Title Business
Warranties and/or warranties in relation to title to the property: construction of an access railroad to the Elga coal field from the Ulak station to the Elga station; designation: railway construction, length: 317000 m; completeness: 91%; cadastral
number: 0:0:0:277, as set out in paragraph 5.6 of section 5 of Part B (Business Warranties) of Schedule 2 (Warranties), [*****] after the date of this Agreement; 

  
 21 

	 	(iv)	 in the case of any other Claim (other than Claims referred to in (i), (ii) and (iii) above), [*****] after
the date of this Agreement. 

 The above time limits in relation to a Seller’s liability shall apply to the
Seller’s liability for any Claim by the Purchaser to the Seller hereunder, however described: a claim for default interest, damages, proportional reduction of the purchase price, remediation of defects or indemnification for costs to remedy
defects or any other claim or combination of claims. 
 If the Purchaser fails to make a Claim within the above term, such failure by the
Purchaser to make such a Claim and, accordingly, to exercise its right within the said term shall be regarded by the Parties as waiver by the Purchaser of its right hereunder to make a Claim against any of the Sellers (within the meaning of Articles
450.1(6) and 450.1(7) of the Russian Civil Code). 
 In accordance with Article 406.1(1) of the Russian Civil Code, the Purchaser shall
indemnify the relevant Seller for any and all losses incurred by such Seller or its Affiliates in connection with any Claim made by the Purchaser or its Affiliates against any of them after the expiry of the relevant term as specified in this Clause
8.2.2(G), in the amount equal to the amount of such Claim plus any legal costs and other costs and expenses incurred in connection with such Claim and the enforcement by the relevant Seller of its rights hereunder. 

 

	8.2.3	 The Sellers shall not be liable under their Warranties hereunder or upon the occurrence of a Purchaser Losses
Trigger Event, if the Purchaser or any Seller repudiates this Agreement for any reason as provided for by this Agreement. 

  

	8.2.4	 The Seller’s maximum aggregate liability hereunder (without, however, any limitation on the Sellers’
liability for the Purchaser Permitted Payables Losses to be indemnified in excess of the following limitations) shall not exceed: 

  

	 	(A)	 in relation to Seller 1, the amount equal to [*****] (the “Seller 1 Maximum Liability”);

  

	 	(B)	 in relation to Seller 2, the amount equal to [*****] (the “Seller 2 Maximum Liability”),

 and payment (repayment) of such amount shall terminate and discharge all claims of the Purchaser against the Seller in
connection with any existing or future claims under or in connection with this Agreement, provided that: 
  

	 	(C)	 the maximum aggregate liability of Seller 1 upon the occurrence of a Purchaser RIP Losses Trigger Event for all
Claims made by the Purchaser (1) in connection with upon the occurrence of a Purchaser RIP Losses Trigger Event and/or (2) under the Seller 1 Business Warranties in relation to taxation in connection with Seller 1’s status as
participant of the Regional Investment Project, shall not exceed the RIP Limitation of Liability; 

  
 22 

	 	(D)	 the maximum aggregate liability of each of the Sellers for all Claims under the Seller 1 Title Business
Warranties or the Seller 2 Title Business Warranties shall in no event exceed: 

  

	 	(i)	 in relation to Seller 1, the amount of [*****]; 

 

	 	(ii)	 in relation to Seller 2, the amount of [*****]; 

 

	 	(E)	 the maximum aggregate liability of each of the Sellers for all Claims (other than a Claim under the General
Warranties, the Seller 1 Title Business Warranties and the Seller 2 Title Business Warranties, or a Claim in connection with the occurrence of a Purchaser RIP Losses Trigger Event, or a Claim in connection with the occurrence of a Purchaser
Permitted Payables Losses Trigger Event, or a Claim for losses specified in Clause 13.15) shall in no event exceed: 

  

	 	(i)	 in relation to Seller 1, [*****]; 

 

	 	(ii)	 in relation to Seller 2, [*****]; 

 

	 	(F)	 [*****]. 

  

	8.2.5	 Seller 1 shall have no liability in respect of a Claim (other than a Claim in connection with the occurrence of
a Purchaser RIP Losses Trigger Event, or a Claim in connection with the occurrence of a Purchaser Permitted Payables Losses Trigger Event, or a Claim for losses specified in Clause 13.15) unless and until: 

 

	 	(A)	 in the case of any such Claim against Seller 1, the amount of Seller 1’s liability for such Claim
(including costs and expenses relating to its enforcement) exceeds [*****]; 

  

	 	(B)	 the aggregate amount of Seller 1’s liability for all Claims (provided that each such Claim meets the
criteria specified in Clause 8.2.5(A)) made against it exceeds [*****], 

 provided that, for the avoidance of doubt, and
subject to limitations on Seller 1’s liabilities as set out in Clause 8.2.4, once such threshold is exceeded, the Seller shall be liable for the entire aggregate amount and not merely for the excess. 

 

	8.2.6	 The Purchaser acknowledges and agrees that neither the Sellers not any third parties give or assume any
warranty, undertaking, representation, promise or any other statement in respect of the accuracy of any projections, estimates, forecasts, intentions or bona fide opinions as given to the Purchaser. 

 

	8.2.7	 Notwithstanding any provision of this Agreement to the contrary, the maximum aggregate liability of the
Purchaser under this Agreement shall not exceed the amount of [*****], provided that, in each case, payment (repayment) of such amount shall terminate and discharge all claims of the relevant Seller against the Purchaser in connection with any
existing or future claims (the “Purchaser Maximum Liability”), and further provided that the maximum aggregate liability of the Purchaser under this Agreement for any claims that

  
 23 

	 	
may be made by the relevant Seller to the Purchaser for indemnification of such Seller’s losses hereunder shall in no event exceed: 

 

	 	(i)	 in relation to Seller 1’s claims, [*****]; 

 

	 	(ii)	 in relation to Seller 2’s claims, [*****]. 

 

	8.3	 Third Party Claims 

 

	8.3.1	 Where a claim or demand is made by a third party (including the Governmental Authorities) against the Purchaser
or the Company that gives or might give rise to a Claim against a Seller (a “Third Party Claim”), the Purchaser shall: 

  

	 	(A)	 within five (5) Business Days after receipt of such Third Party Claim by the Purchaser or the relevant
Company, deliver a copy of such Third Party Claim to each of the Sellers together with all information and documents as enclosed with such Third Party Claim upon its receipt by the Purchaser or such Company, and, at a Seller’s request, deliver,
and procure that the Companies will deliver, to each of the Sellers, within reasonable time, all documents and information in their possession that directly relate to the Third Party Claim and as reasonably required by the Sellers to consider and
resolve such Third Party Claim; 

  

	 	(B)	 subject to Clause 8.3.6, consult, and procure that the relevant Company will consult, with the relevant Seller
in relation to the resolution of such Third Party Claim and, subject to compliance by the Sellers with their obligations under Clause 8.3.1(C), provide (acting in good faith), and procure that the relevant Company will provide, to the Sellers all
assistance as may be required for the resolution of such Third Party Claim; and 

  

	 	(C)	 if so requested by a Seller, issue (and procure that the relevant Company will issue) to the Seller (or its
nominee) an irrevocable power of attorney, in form and substance reasonably satisfactory to the Seller and the Purchaser, authorizing the Seller (or its nominee) to pursue such Third Party Claim, including the power to represent the Companies in a
court or any other Governmental Authorities (including the power to sign a statement of defence, withdraw or admit a claim in full or in part, alter the basis of subject matter of a claim, enter into a compromise or findings of fact agreement,
delegate its powers to another person (sub-delegation)), and do or procure that the relevant Company will do all other actions as may be required for comprehensive, unrestricted and continuous access of the
Seller to all dispute resolution procedures in connection with such Third Party Claim. Subject to compliance by the Sellers with their obligations under this Clause 8.3.1(C), the Purchaser shall not (and shall procure that the relevant Company shall
not) do anything to revoke or terminate, or challenge the validity of or declare invalid any such irrevocable power of attorney (unless there is a ground for such actions under the Applicable Law), and shall not (and shall procure that the relevant
Company shall not) prevent the attorneys from exercising their powers under such irrevocable power of attorney. At a Seller’s request, upon the termination of such irrevocable power of attorney (otherwise than as a result of its challenging or
its declaration invalid), the Purchaser shall issue (and procure that the relevant Company shall issue) a replacement irrevocable power of attorney. 

  
 24 

 The Sellers shall act reasonably and in good faith in the interests of the Company and the
Purchaser in pursuing any Third Party Claim, and, in particular, shall not cause any damage to the Companies and the Purchaser (and its Affiliates). The Sellers agree that all costs and expenses in connection with the resolution of such Third Party
Claim (including legal costs and consultants’ fees and other costs and expenses) shall be borne by the Sellers, or, where such costs and expenses are to be paid by the Purchaser or the Companies, the Sellers shall pay the amount of such costs
and expenses to the Purchaser in advance at its request. If and to the extent that the Purchaser demonstrates that as a result of the Sellers’ actions, in exercising their powers under this Clause 8.3.1(C), any Company has incurred a greater
loss than the loss it would have incurred had the Third Party Claim been resolved by the Company independently, the Sellers shall, at the Purchaser’s request in writing, compensate the Purchaser for such excess loss by payment of the difference
to the Purchaser. 
  

	8.3.2	 If, as a result of a Third Party Claim, pursuant to a binding requirement or decision of a Governmental
Authority or any other person who, by virtue of any arrangements made prior to the Participation Interests Transfer Date, may exercise the direct debit rights, any amount was debited by way of direct debit from an account of any of the Companies or
the Purchaser in satisfaction of a Governmental Authority’s Third Party Claim, or any cash amount is required to be paid under the Applicable Law prior to the commencement of any appeal proceedings in relation to a Governmental Authority’s
Third Party Claim, the requesting Seller under Clause 8.3.1(C) shall, within ten (10) Business Days after the Purchaser’s request, pay to the Company or the Purchaser the amount that was so directly debited or that is required to be so
paid, following which the relevant Third Party Claim shall be conducted and resolved in accordance with the provisions of Clauses 8.3.1 - 8.3.5. 

  

	8.3.3	 Without prejudice to Clause 8.3.6, either Seller may, within ten (10) Business Days after receipt of the
Purchaser’s notice, deliver to the Purchaser its proposals in writing as to the conduct of the Third Party Claim. The Purchaser may take (and procure that the Companies will take) all actions within its control to resolve the Third Party Claim
as proposed by the Seller, provided that the Sellers’ liability for a Claim based on such Third Party Claim shall be reduced if and to the extent that the Sellers demonstrate that, had the Purchaser followed the Sellers’ proposals, the
liability for such Third Party Claim would have been reduced. If, within ten (10) Business Days after receipt from the Purchaser of a notice of a Third Party Claim (together with information and documents that are available to the Purchaser and
the relevant Company and relevant to the Third Party Claim and as reasonably required by the Seller to make the relevant determination) specifying the Purchaser’s position as to the resolution of such Third Party Claim or any other
Purchaser’s notice setting out such position, the Seller do not deliver its reply to the Purchaser, the Seller shall be deemed to have agreed with the Purchaser’s position as to the resolution of such Third Party Claim.

  

	8.3.4	 Without prejudice to Clause 8.3.6, the Purchaser shall (and shall procure that the Companies shall) act in good
faith in connection with the resolution of a Third Party Claim and shall not (and shall procure, to the extent it is within the Purchaser’s control, by exercising its corporate rights that the Companies shall not), without the Sellers’
prior consent in writing (such consent not to be unreasonably withheld by any Seller acting reasonably and in good faith), compromise or admit any suit, claim or demand that result or might result in the incurrence by the Purchaser and/or the
Companies of any losses or damages. If no reply is provided by the Sellers within ten (10) Business Days after the Purchaser’s request for such a consent, such consent shall be deemed to be given by the Sellers. 

  
 25 

	8.3.5	 Without prejudice to Clause 8.3.6, the Sellers shall have no liability (or their liability shall be reduced)
for a Claim (including, without limitation, a claim by the Purchaser under any Warranties given by the Sellers or a claim by the Purchaser for indemnification of the Purchaser Losses) if and to the extent that such liability has arisen (increased)
as a result of a breach by the Purchaser of the provisions of this Clause 8.3. 

  

	8.3.6	 Notwithstanding any provision of Clauses 8.3.1-8.3.5 to the contrary: 

 

	 	(A)	 if a Third Party Claim is made against the Purchaser or a Company that gives or might give rise to a Claim
against Seller 1 in connection with the occurrence of a Purchaser RIP Losses Trigger Event or under the Seller 1 Business Warranties in relation to taxation in connection with Seller 1’s status as participant of the Regional Investment Project,
including in connection with the commencement or in the course or upon completion of a Tax Audit; and 

  

	 	(B)	 in relation to the Litigation, 

the Purchaser shall (and shall procure that the relevant Company shall) take all reasonable measure to resolve the Third Party Claim or the
Litigation taking into account the Seller’s proposals, or issue to the Seller an irrevocable power of attorney and do any other actions as required by Clause 8.3.1(C). The conduct of any proceedings in connection with any disputes and
controversies in connection with such Third Party Claim or the Litigation shall be delegated solely to the Sellers who shall act reasonably and in good faith in the interests of the Company and the Purchaser and, without limitation, shall not cause
any damage to the Companies and the Purchaser (and its Affiliates). The Purchaser shall (and shall procure that the Companies shall) act in good faith in connection with such Third Party Claim and in relation to the Litigation and shall not (and
shall procure that the Companies shall not), without the Sellers’ prior consent in writing (such consent not to be unreasonably withheld by any Seller acting reasonably and in good faith), compromise or admit any suit, claim or demand or do any
other actions that result or might result in the incurrence by the Purchaser and/or the Companies of any losses or damages in connection with such Third Party Claim or the Litigation, including as a result of any voluntary withdrawal or waiver,
denial or any other termination (in full or in part) of the relevant Company’s rights and claims in the Litigation. In the case of a breach by the Purchaser of the provisions of this Clause 8.3.6, Seller 1 shall have no liability (or Seller
1’s liability shall be reduced) for the Purchaser Losses upon the occurrence of a Purchaser RIP Losses Trigger Event or under the Seller 1 Business Warranties in relation to taxation in connection with Seller 1’s status as participant of
the Regional Investment Project, if and to the extent that such liability has arisen (increased) as a result of a breach by the Purchaser of the provisions of this Clause 8.3.6. 

The Purchaser may revoke a power of attorney issued under this Clause 8.3.6 if, in resolving a Third Party Claim as set out in Clause 8.3.6,
the Sellers act to the detriment of the relevant Company. 
 The Purchaser agrees that, if Seller 1 has paid the Purchaser RIP Losses under
Clauses 7.1.4 and 7.1.5, it shall be deemed that, in conducting any proceedings in connection with the relevant Third Party Claim or the Litigation, the Sellers act in good faith, and that the conduct of any proceedings in connection with any
disputes and controversies in connection with such Third Party Claim or the Litigation shall be delegated solely to the Sellers. 

  
 26 

	8.4	 No Double Recovery 

 

	8.4.1	 No Seller shall be liable in respect of any Claim to the extent that the same loss or damage has been recovered
by the Purchaser under any other Claim. 

  

	8.4.2	 The Parties agree that no Party shall be entitled to recover losses or damages incurred by it more than once.
In the event that the other Party or any person recovers any amount of such loss (including by way of indemnification of losses) or damage on any other ground in accordance with this Agreement or any other agreement, the liability for such loss or
damage under this Agreement shall be reduced proportionately. 

  

	8.4.3	 If one and the same circumstance gives rise to a claim under the Warranties in accordance with Clause 6 and a
claim for the Losses under Clause 7, no Party shall be entitled to make both of the two claims. 

  

	8.5	 Third Party Indemnity 

 

	8.5.1	 If the Purchaser and/or a Company is entitled to claim from a third party any losses or damages resulting from
any event, fact or circumstance giving rise to a Claim made against the Seller hereunder, the Purchaser shall (and shall procure that the relevant Company shall) make the relevant claim for losses or damages against such third party and take all
commercially reasonable measures to recover such losses or damages from the third party, including by way of applying to a court (a “Third Party Indemnity”). 

 

	8.5.2	 If the relevant Seller has already paid to the Purchaser under the relevant Claim (or its part), the Purchaser
shall (and shall procure that the relevant Company shall), within ten (10) Business Days after the actual receipt of the amount of the Third Party Indemnity, repay to the Seller the amount of such Claim not exceeding the amount of the Third
Party Indemnity actually received by the Purchaser or the Company from the relevant third party. 

  

	8.6	 Seller’s Right to Remedy 

 

	8.6.1	 A Seller shall have no liability for a Claim where the circumstance giving rise to the Claim is remediable and
remedied by the Seller (i) in such a way as if there was no circumstance giving rise to the Claim, and (ii) in accordance with the Applicable Law, within one hundred and fifty (150) Business Days after the Claim was served by the
Purchaser hereunder, where the Claim was made by the Purchaser in connection with a Governmental Authority’s claim, or one hundred and fifty (150) calendar days after the Claim was served by the Purchaser hereunder, where the Claim was
made by the Purchaser in connection with a third party claim. 

  

	8.7	 Purchaser’s Knowledge and Disclosure 

 

	8.7.1	 A Seller shall not be liable for the inaccuracy of any Warranty given by it, if: 

 

	 	(A)	 information on such inaccuracy was disclosed in this Agreement or any other Transaction Document;

  

	 	(B)	 information on such inaccuracy was disclosed in the Seller 1 Disclosure Letter and/or the Seller 2 Disclosure
Letter; 

  
 27 

	 	(C)	 information on such inaccuracy or any facts, events or circumstances demonstrating such inaccuracy was
discovered by the Purchaser or its consultants, acting reasonably and taking into account the contents of the relevant documents, in reviewing the documents downloaded by the Sellers, the Companies and/or their representatives/employees onto the
Data Rooms, other than any facts, events or circumstances demonstrating an inaccuracy of the Seller 1 Title Business Warranties and/or the Seller 2 Title Business Warranties and the warranty in paragraph 5.6 of section 5 of Part B (Business
Warranties) in relation to Company 2’s title to the property: construction of an access railroad to the Elga coal field from the Ulak station to the Elga station; designation: railway construction, length: 317000 m; completeness: 91%; cadastral
number: 0:0:0:277, whose inaccuracy may only be disclosed in the Disclosure Letters; 

  

	 	(D)	 the Purchaser or its consultants acting reasonably could discover such inaccuracy by conducting the search in
the following publicly available sources: 

 i.    the
e-version of the USRLE, available at: http://www.nalog.ru/; 
 ii.    the
official source of published information on corporate bankruptcies, available at: http://www.kommersant.ru/bankruptcy/; 

iii.    the official case files of federal arbitration courts of the Russian Federation, available at:
http://kad.arbitr.ru/; 
 iv.    the Unified Federal Register of Information on Significant Events in Operations
of Legal Entities, Individual Entrepreneurs and Other Persons Involved in Business Activities, available at: https://fedresurs.ru/; 

v.    the Register of Notices of Pledge of Moveable Assets, available at:
https://www.reestr-zalogov.ru/state/index. 
  

	8.8	 Purchaser’s Duty to Mitigate 

 

	8.8.1	 If any circumstance occurs giving rise to a Claim against a Seller, the Purchaser shall: 

 

	 	(A)	 (and procure that the relevant Company shall) take all commercially reasonable steps to mitigate the
Companies’ and the Purchaser’s losses and damages in connection with the occurrence of such circumstance; 

  

	 	(B)	 (and procure that the Companies shall) act reasonably and in good faith in connection with the occurrence of
such circumstance; 

  

	 	(C)	 not exercise any civil rights (including its rights under this Agreement or any other Transaction Document)
solely with a view to cause damage to a Seller and/or the Companies, or act in circumvention of the law or otherwise knowingly abuse its civil rights (including its rights under this Agreement). 

 

	8.8.2	 The Purchaser shall, and shall procure that the Company shall, deliver to the Seller all documents and
information available to them in relation to the Claim, unless the delivery of such documents and information is contrary to the Purchaser’s and/or the Companies’ public 

  
 28 

	 	
duties (including, without limitation, the duty to protect personal data) or the Purchaser’s and/or the Companies’ obligations to third parties (including, without limitation, a
confidentiality undertaking). The Purchaser shall, and shall procure that the Company shall, take all reasonable actions to obtain all necessary consents and permits from third parties in order to perform its delivery obligations hereunder.

  

	8.8.3	 A Seller may provide its comments in relation to any Claim. If no objections as to the circumstances described
in the Claim have been raised by a Seller, this shall not be regarded as the Seller admitting its liability for such Claim. 

  

	8.8.4	 A Party shall have no liability under this Agreement to another Party where action resulting in the breach of
this Agreement has been done by such Party in accordance with this Agreement or any other Transaction Document or with consent in writing or at the request in writing of the other Party or (subject to prior notice to the other Party, where possible)
in accordance with the mandatory provisions of the Applicable Law or binding requirements of a Governmental Authority or a third party. 

  

	8.8.5	 The amount of a Party’s liability to the other Party shall be reduced if and to the extent that the other
Party or a Company (where such other Party exercises Control over the Company) has contributed to an increase of the amount of the relevant loss or damage, excluding any reasonable and lawful actions of such other Party or the Company (where such
other Party exercises Control over the Company) taken to remedy the circumstances giving rise to such losses or damages. 

  

	8.9	 Payments in Satisfaction of Claims 

 

	8.9.1	 Any sum to be paid by a Seller to the Purchaser in relation to a Claim made under this Agreement shall be paid
by the Seller to the Purchaser within fifty (50) calendar days after such sum becomes due and payable by the Seller. 

  

	9	 TRANSACTIONS SIMULTANEOUS 

 

	9.1	 The Parties agree that, without prejudice to Clause 13.7, the completion of the Transaction in relation to
Participation Interest 1 only or Participation Interest 2 only or Participation Interest 3 only shall be considered to not have taken place unless the Transaction shall have taken place in relation to all the Participation Interests (Participation
Interest 1, Participation Interest 2 and Participation Interest 3) simultaneously. 

  

	9.2	 If the Purchaser becomes entitled, pursuant to the provisions of this Agreement or the Applicable Law, to
terminate, or declare invalid, or repudiate, this Agreement, the Purchaser shall only do so by written notice to each of Seller 1 and Seller 2 in relation to all the Participation Interests, without prejudice to the Purchaser’s right of partial
repudiation under Clause 13.7. 

  

	9.3	 If a Seller becomes entitled, pursuant to the provisions of this Agreement or the Applicable Law, to terminate,
or declare invalid, or repudiate, this Agreement, the Seller shall only do so by written notice to each of the Purchaser and the other Seller in relation to all the Participation Interests, without prejudice to the Purchaser’s right of partial
repudiation under Clause 13.7. 

  
 29 

	10	 CONFIDENTIALITY 

 

	10.1	 The Parties shall not to disclose, directly or indirectly, communicate, publish, transfer or make use of any
confidential information provided by the Parties to each other in any form, as set out in Clauses 10.2 – 10.4 (the “Confidential Information”), whether in their own interests or in the interests of a third party, and shall not
permit an unauthorized use of the Confidential Information, other than with the disclosing Party’s consent in writing, unless and to the extent that: 

  

	 	(A)	 such disclosure is required by the Applicable Law; 

 

	 	(B)	 such disclosure is made to any consultants involved in the preparation of this Agreement (or any agreement or
contract to be executed hereunder), in the course of negotiations relating to the execution, amendment, performance or termination of this Agreement (or any agreement or contract to be executed hereunder), or to credit institutions and auditors,
provided that, in each case, the persons to whom the disclosure is made shall undertake to keep such information confidential on and subject to the terms that are identical to the terms of this Agreement; 

 

	 	(C)	 such disclosure of information relating to this Agreement (or any agreement or contract to be executed
hereunder) is made between the Parties’ affiliates or employees or their affiliates involved in the preparation of this Agreement (or any agreement or contract to be executed hereunder) or the negotiations relating to the execution, amendment,
performance or termination of this Agreement (or any agreement or contract to be executed hereunder), provided that, in each case, the persons to whom the disclosure is made shall undertake to keep such information confidential on and subject to the
terms that are identical to the terms of this Agreement; 

  

	 	(D)	 such disclosure is made by the Party in order to enable it to perform its obligations and/or protect its rights
hereunder; 

  

	 	(E)	 such disclosure is required by a Party to exercise its rights as participant in the Company;

  

	 	(F)	 such disclosure is made in connection with an assignment by the Party of its rights hereunder in accordance
with the terms of this Agreement to a potential transferee, provided that such potential transferee shall undertake to keep such information confidential on and subject to the terms that are identical to the terms of this Agreement;

  

	 	(G)	 the relevant information became known to the Party prior to its receipt from the other Party without a breach
of confidentiality undertakings and is not subject to confidentiality obligations; 

  

	 	(H)	 the relevant information is in the public domain or comes into the public domain other than as a result of a
breach of this Agreement; 

  

	 	(I)	 such disclosure is required to be made, or access to such information may not be restricted, in accordance with
the Applicable Law; 

  
 30 

	 	(J)	 such disclosure is made to a Party’s auditors, professional consultants, financiers or rating agencies
and/or their respective Affiliates, provided that the persons to whom the disclosure is made shall undertake to keep such information confidential on and subject to the terms that are identical to or more strict than the terms of this Agreement;

  

	 	(K)	 such disclosure is made to a stock exchange on which Parties’ shares and/or their Affiliates’ shares
(including NYSE, the Moscow Stock Exchange) are traded, or any controlling institutions. 

  

	10.2	 Each of the Parties undertakes to keep in strict confidentiality any information that: 

 

	 	(A)	 it may have or receive prior to or after the date of this Agreement in relation to customers, business, assets
or operations of any other Party; and 

  

	 	(B)	 is relevant to the contents of this Agreement (or any other Transaction Document). 

For the avoidance of doubt, the provisions of this Clause 10.2 shall not apply to any permitted disclosure of Confidential Information by a
Party under Clause 10.1. 
  

	10.3	 The Purchaser undertakes to keep in strict confidentiality any information that it may have or receive prior to
or after the date of this Agreement in relation to assets and businesses of the Companies. 

 The confidentiality
obligations under this Clause 10.3 shall terminate as of the Participation Interests Transfer Date or (in relation to Company 1 and Company 2) the Participation Interest 1 and Participation Interest 2 Transfer Date, where the right to partially
repudiate is exercised by Seller 2 and the Purchaser under Clause 13.7. 
 For the avoidance of doubt, the provisions of this Clause 10.3
shall not apply to any permitted disclosure of Confidential Information by the Purchaser under Clause 10.1. 
  

	10.4	 The Sellers undertake to keep in strict confidentiality any information that it may have or receive prior to or
after the date of this Agreement in relation to assets and businesses of the Companies. 

 The confidentiality obligations
under this Clause 10.4 shall become effective as of the Participation Interests Transfer Date or (in relation to Company 1 and Company 2) the Participation Interest 1 and Participation Interest 2 Transfer Date, where the right to partially repudiate
is exercised by Seller 2 and the Purchaser under Clause 13.7. The confidentiality obligations under this Clause 10.4 shall terminate as of the date of repudiation of this Agreement by the Sellers under Clause 13.6 or, in relation to Seller 2, the
date of repudiation of this Agreement by each of Seller 2 and the Purchaser under Clause 13.7. 
 For the avoidance of doubt, the provisions
of this Clause 10.4 shall not apply to any permitted disclosure of Confidential Information by the Sellers under Clause 10.1. 
  

	10.5	 Without prejudice to Clauses 10.1, 10.2 and 10.3, Seller 1 and Seller 2 shall reserve the right to disclose,
and/or consent to the disclosure by Mechel PAO of this Agreement as may be required by a stock exchange (including NYSE, the Moscow Stock Exchange) on which Mechel PAO shares are traded or any controlling institutions, where such disclosure is
required by their respective rules. 

  
 31 

	10.6	 Without prejudice to Clauses 10.3 and 10.4, the restrictions under this Clause 10 shall apply to each of the
Parties indefinitely. 

  

	10.7	 In case of a breach by a Party of the provisions of this Clause 10, such Party shall compensate the other Party
for any and all losses suffered by the other Party as a result of such breach. 

  

	11	 PUBLIC ANNOUNCEMENTS 

Mechel, of whom Seller is an affiliate, is a public company whose shares are listed on the Moscow Stock Exchange and the New York Stock
Exchange. Accordingly, Mechel and its Affiliates are subject to the relevant regulators’ rules of disclosure in respect of information about significant event in their operations. In order to avoid a violation of such disclosure requirements
(including the requirement to procure equal access to information to all market participants), the first announcement by the Parties in relation to this Agreement and/or by Mechel in relation to the Transaction shall be made by them jointly and
simultaneously. The announcement shall be made in the form of a press release agreed by both Parties and shall be in two languages, Russian and English. The Parties shall procure that such information is simultaneously published in the news feed of
the principal global and Russian news agencies (Bloomberg, Reuters, Interfax, RIA Novosti, ITAR-TASS). It shall not be permitted to make any public announcements or press releases in respect of or otherwise disclose information relating to the
execution of this Agreement prior to such official disclosure. The disclosing Party shall deliver a draft of such disclosure to the other Party and shall take into account any comments made by the other Party in relation to the contents and form of
such disclosure. For the avoidance of doubt, none of the Parties shall make any such disclosure other than in the agreed form. Upon the satisfaction by Mechel and the Seller of their disclosure obligations in relation to the Transaction in
accordance with the regulators’ rules, the Parties shall be entitled to make any public announcements and press releases and disclose information without any restrictions and without the other Parties’ consent. 

 

	12	 SET OFF 

In accordance with Article 411 of the Russian Civil Code, none of the Parties may effect any set-off
(whether or not the relevant claims are based on the same grounds and whether or not they have become due and payable), deduction or withholding of any kind (including any present or future taxes, accruals, levies, withholdings or similar charges of
any kind). 
  

	13	 TERM, AMENDMENT AND TERMINATION 

 

	13.1	 This Agreement shall become effective as of the date of its notarization and shall remain in full force and
effect until the performance by the Parties of the respective obligations hereunder in full. 

  

	13.2	 The Parties may at any time terminate this Agreement by mutual agreement, provided that such agreement shall be
in writing and signed by or on behalf of each of the Parties and notarized. 

  
 32 

	13.3	 Unless this Clause 13 provides otherwise, the Parties agree, to the maximum extent permitted by the law, to
disapply the following remedies hereunder and further agree, in accordance with Article 450.1(6) and Article 450.1(7) of the Russian Civil Code, to waive the following rights/remedies (if any) available to the Parties as of the first anniversary of
execution of this Agreement and/or the date as of which the Parties incur the respective obligations giving rise to such rights/remedies: 

  

	 	(A)	 the repudiation of (unilateral refusal to perform) this Agreement in full or in part, and the right to require
amendment or termination of this Agreement in a court (including in accordance with Articles 310, 328, 431.2, 450(2), 450.1, 475, 486 and 489 of the Russian Civil Code); and 

 

	 	(B)	 the termination of this Agreement due to a material change in circumstances (in accordance with Article 451 of
the Russian Civil Code). 

  

	13.4	 The Parties acknowledge and agree that an outbreak and/or spread of potentially dangerous infectious diseases
creating a public health hazard, i.e. an infectious disease attacking humans with severe symptoms and high mortality and disability rates and fast spread among people (epidemics), or a pandemic or the introduction of certain measures in one or more
jurisdictions in connection with such events, including as a result of the 2019-nCoV outbreak and spread, shall not constitute a material change in circumstances (within the meaning of Article 451 of the Russian Civil Code) and shall not give rise
to the right to require termination or amendment of or to repudiate (refuse to perform) this Agreement. 

  

	13.5	 The Parties agree that none of the Parties shall be entitled to terminate this Agreement, without prejudice to
its right to repudiate (refuse to perform) this Agreement under Clauses 13.6 and 13.7. 

  

	13.6	 If: 

  

	 	(i)	 within one hundred and twenty (120) calendar days after the date of this Agreement, the Participation
Interest 1 and Participation Interest 2 Transfer Date has not occurred; or 

  

	 	(ii)	 at least five (5) Business Days prior to the expiry of the deposit term for the keeping of the
Participation Interest 1 Purchase Price and the Participation Interest 2 Purchase Price on the Escrow Account (provided that by that time the Participation Interest 1 Purchase Price and the Participation Interest 2 Purchase Price have not been paid
to the Sellers in accordance with the provisions of this Agreement and the Escrow Agreement), the Escrow Agreement is terminated for any reason, or the Participation Interest 1 Purchase Price (or any part thereof) or the Participation Interest 2
Purchase Price (or any part thereof) is not kept on the Escrow Account (e.g., if it was repaid by the Escrow Agent to the Purchaser or its nominee), 

the Sellers may, acting jointly and at their own discretion, repudiate (refuse to perform) this Agreement, and, in such case, this Agreement
shall be deemed to be terminated in respect of all Parties as of the date of receipt by the Purchaser from the Sellers of their written notice. 

  
 33 

 For the avoidance of doubt, the terms as set out in this Clause 13.6(i) shall be suspended
unless and until the registration of transfer of title to the Participation Interests in the USRLE or other registrations in relation to the Participation Interests are completed or suspended pursuant to any decision issued by the Governmental
Authorities in connection with an outbreak and/or spread of potentially dangerous infectious diseases creating a public health hazard, i.e. an infectious disease attacking humans with severe symptoms and high mortality and disability rates and fast
spread among people (epidemics), or a pandemic and/or the introduction of certain measures in the Russian Federation in connection with such events, including as a result of the 2019-nCoV outbreak and spread in the Russian Federation. 

Promptly upon (to the extent practicable, and in any event within five (5) Business Days after) the receipt by the Purchaser of the
Sellers’ written notice of repudiation, the Parties shall, as a consequence of such termination of this Agreement, repay and return everything received by them from each other hereunder prior to such termination, including: (1) the return
by the Purchaser to the relevant Seller of the relevant Participation Interests that were earlier transferred to the Purchaser hereunder; and (2) release, and all necessary actions required to be done for the release by the Escrow Agent, of the
Participation Interests Purchase Price to the Purchaser, to the extent such Participation Interests Purchase Price was earlier paid to the Escrow Account, and/or the repayment of the Participation Interests Purchase Price (or its part) actually
received by the Sellers or any of them (including to their pledge accounts) hereunder (the “Restitution”). For the avoidance of doubt, if none of the Sellers has actually received (including to its pledge account) by then the
relevant portion of the Participation Interests Purchase Price (or its part) that was due to it from the Purchaser and/or the Escrow Agent, the Sellers’ obligation as part of the Restitution to repay the Participation Interests Purchase Price
to the Purchaser shall be confined to their obligation to execute the relevant Seller’s instructions (if required under the terms of the Escrow Agreement) to the Escrow Agent to release the Participation Interest Purchase Price to the
Purchaser. 
 As part of the Restitution, the Purchaser shall return all the Participation Interests to Seller 1 and Seller 2 if, in relation
to any of the Participation Interests, an entry was made in the USRLE in relation to the transfer of title to such Participation Interest to the Purchaser. 

Promptly upon (and in any event within five (5) Business Days after) the receipt by the Purchaser of the Sellers’ notice of
repudiation under this Clause 13.6, the Parties agree to do and execute all necessary actions and agreements and other documents as may be required to effect the Restitution, including: 

 

	 	(A)	 the repayment and return to each other, without any retention, everything received by them from each other
hereunder (for the avoidance of doubt, Article 328(3) of the Russian Civil Code shall not apply), including the return to the relevant Seller of the relevant Participation Interests, free and clear of any Encumbrances (other than the Permitted
Encumbrances), and the release of the Participation Interest 1 Purchase Price and the Participation Interest 2 Purchase Price from the Escrow Account to the Purchaser; and 

 

	 	(B)	 the execution and performance of all necessary documents and actions as may be required in connection with the
return and repayment of everything received by the Parties from each other hereunder and termination of this Agreement, including, if so required by a notary and reasonably requested by the Sellers for the purpose of state registration of transfer
of the relevant Participation Interests back to Seller 1 or Seller 

  
 34 

	 	
2 in the USRLE, the execution, notarization and performance of an agreement in relation to the return and repayment of everything received by the Parties from each other hereunder in the form set
out in Schedule 3 (Form of Restitution Agreement) hereto (the “Restitution Agreement”). 

 Subject to Clause
13.16 and without prejudice to any other remedies available to the Parties under this Agreement and the Applicable Law, if the Restitution and the specific performance of the Purchaser’s obligation to return the relevant Participation Interest
to the relevant Seller is not possible, the Purchaser shall compensate the relevant Seller for the value of such Participation Interest in the amount equal to the relevant portion of the Participation Interest Purchase Price as attributable to such
Participation Interest. 
  

	13.7	 The Parties agree that, if (i) the state registration of transfer of Participation Interest 3 from Seller
2 to the Purchaser has not occurred within two (2) months after the date of this Agreement, and (ii) the Participation Interest 1 and Participation Interest 2 Transfer Date has occurred, then Seller 2 and the Purchaser may, by agreement,
repudiate (refuse to perform) this Agreement (in relation to the Purchaser, such repudiation shall constitute the partial termination of this Agreement), provided that neither the Participation Interests Transfer Date nor the Participation Interest
1 and Participation Interest 2 Transfer Date has occurred on or before the date of such repudiation, and, in case of a repudiation under this Clause 13.7, this Agreement shall be deemed to be terminated in full in relation to Seller 2 (including any
obligations and liabilities of Seller 2 in relation to the relevant Warranties) and in relation to the Purchaser, to the extent relating to payment of the Participation Interest 3 Purchase Price, as of the date of receipt by the relevant Party of
the written notice of repudiation. As of the date of repudiation of this Agreement under this Clause 13.7, Seller 2’s aggregate liability hereunder equals to (1) ruble. 

 

	13.8	 The Parties acknowledge and agree that a refusal by the Registration Authority to make an entry in the USRLE in
relation to the transfer of Participation Interest 3 from Seller 2 to the Purchaser or a suspension by the Registration Authority of the state registration of transfer of Participation Interest 3 from Seller 2 to the Purchaser shall not constitute a
material change in circumstances (within the meaning of Article 451 of the Russian Civil Code) and shall not give rise to the right to require termination or amendment of or repudiation (refusal to perform) of this Agreement (other than the right to
repudiate under Clause 13.7) or prevent the execution of the Transaction (including in relation to payment of the Participation Interest 1 Purchase Price and the Participation Interest 2 Purchase Price) in relation to Participation Interest 1 and
Participation Interest 2. 

  

	13.9	 In accordance with Article 301(3) of the Russian Civil Code, the right to repudiate (refuse to perform) or
unilaterally amend this Agreement shall be vested on each of the Parties (and the right to repudiate (refuse to perform) this Agreement by agreement under Clause 13.7 shall be vested on Seller 2 and the Purchaser) under this Clause 13 for no
consideration in the form of any payment or any other consideration due to other Parties. For the avoidance of doubt, in accordance with Article 452(1) of the Russian Civil Code, a unilateral amendment of this Agreement by a Seller and/or the
Purchaser and the repudiation of this Agreement by a Seller or the Purchaser (in full or in part) (or its repudiation under Clause 13.7) under this Clause 13 shall not require notarization. 

 

	13.10	 The Parties agree that, for the purpose of the Restitution, the Parties may require the return of everything
delivered by them in performance of their obligations hereunder prior to the termination of this Agreement (in particular, without limitation, each Seller may require that any Participation Interest earlier transferred by it to the Purchaser shall
be transferred back to such Seller). 

  
 35 

	13.11	 Subject to Clause 13.16, the Parties agree that the Sellers’ obligations to perform any actions for the
purpose of the release of any amounts from the Escrow Account to the Purchaser as part of the Restitution shall be conditional upon the performance by the Purchaser of its obligation to return to Seller 1 and Seller 2 the Participation Interests
that are shown in the USRLE as participation interests owned by the Purchaser and the making of an entry in the USRLE showing that all the Participation Interests are owned by Seller 1 and Seller 2, as applicable. The provisions of this Clause 13 in
relation to the Restitution, the Restitution Agreement and an Irrevocable Offer shall also apply if, after the execution and performance of the Restitution Agreement or the acceptance of an Irrevocable Offer in relation to the Participation
Interests that are shown in the USRLE as participation interests owned by the Purchaser, an entry shall be made in the USRLE about the transfer to the Purchaser of title to a Participation Interest whose transfer to the Purchaser was previously
refused or suspended. 

  

	13.12	 The provisions of this Clause 13 in relation to the Restitution and the return of everything received by the
Parties from each other hereunder shall survive the termination of this Agreement for any reason. 

  

	13.13	 Without prejudice to Clause 13.6, 

 

	 	(1)	 to procure that the Restitution is duly effected, the Purchaser hereby grants to the Sellers, by way of an
irrevocable offer incorporated in this Clause 13.13, an option to execute a termination agreement between the Purchaser and the Sellers in relation to this Agreement in respect of Participation Interest 1, Participation Interest 2 and Participation
Interest 3 on the terms set out in this Clause 13.13; and 

  

	 	(2)	 to procure that the Restitution is duly effected, the Sellers hereby grant to the Purchaser, by way of an
irrevocable offer incorporated in this Clause 13.13, an option to execute a termination agreement between the Purchaser and the Sellers in relation to this Agreement in respect of Participation Interest 1, Participation Interest 2 and Participation
Interest 3 on the terms set out in this Clause 13.13; 

 (in each case, an “Irrevocable Offer”), provided
that: 
  

	 	(A)	 the provisions of this Clause 13.13 shall constitute an agreement to grant an option to execute a contract
under Article 429.2 of the Russian Civil Code and relate to each of the options contemplated by this Clause 13.13; 

  

	 	(B)	 each of the options contemplated by this Clause 13.13 shall be incorporated into this Agreement (in accordance
with Article 429.2(6) of the Russian Civil Code); 

  

	 	(C)	 each of the options contemplated by this Clause 13.13 shall be an option granted for no consideration;

  
 36 

	 	(D)	 the Parties agree that an Irrevocable Offer may be accepted: 

 

	 	(i)	 by the Sellers upon the expiry of five (5) Business Days after the receipt by the Purchaser from the
Sellers of their written notice of repudiation under Clause 13.6, provided that title to either Participation Interest 1 or Participation Interest 2 (but, for the avoidance of doubt, not to both) was transferred to the Purchaser on or before the
date of acceptance of the Irrevocable Offer and irrespective of whether or not title to Participation Interest 3 was transferred to the Purchaser, and further provided that as at the date of such acceptance of the Irrevocable Offer the Participation
Interest 1 Purchase Price and the Participation Interest 2 Purchase Price were not transferred from the Escrow Account to Seller 1’s pledge account and/or the Seller 1 Account and were not paid by the Purchaser to Seller 1 (in each case, as
evidenced by documents specified in (F) below); 

  

	 	(ii)	 by the Purchaser upon the expiry of thirty (30) calendar days after the receipt by the Purchaser from the
Sellers of their written notice of repudiation under Clause 13.6, provided that title to either Participation Interest 1 or Participation Interest 2 (but, for the avoidance of doubt, not to both) was transferred to the Purchaser on or before the
date of acceptance of the Irrevocable Offer and irrespective of whether or not title to Participation Interest 3 was transferred to the Purchaser, and further provided that as at the date of such acceptance of the Irrevocable Offer the Participation
Interest 1 Purchase Price and the Participation Interest 2 Purchase Price were not transferred from the Escrow Account to Seller 1’s pledge account and/or the Seller 1 Account and were not paid by the Purchaser to Seller 1 (in each case, as
evidenced by documents specified in (F) below), 

 (in each case, a “Trigger Event”), and, for the
avoidance of doubt, upon the occurrence of a Trigger Event, the termination agreement in relation to this Agreement to be executed by way of acceptance of the Irrevocable Offer shall apply to Participation Interest 1 and/or Participation Interest 2
and Participation Interest 3 (as applicable under this Clause 13.13); 
  

	 	(E)	 an Irrevocable Offer may be accepted by the relevant Party within twelve (12) months after the date of
this Agreement, subject to the provisions of Clause 13.13(D); 

  

	 	(F)	 the Parties agree that, in order to demonstrate the occurrence of a Trigger Event, a Party shall deliver to the
notary each of the following documents: 

  

	 	(i)	 an electronic extract from the USRLE showing that the title to Participation Interest 1 (or part thereof) or
Participation Interest 2 (or part thereof) was transferred to the Purchaser at any time from the date of this Agreement to the date of acceptance of the Irrevocable Offer; 

 

	 	(ii)	 an electronic extract from the USRLE showing that as at the date of such acceptance of the Irrevocable Offer
Seller 1 is registered as the owner of Participation Interest 2 (if the extract delivered under sub-paragraph (i) above shows that the title to Participation Interest 1 was transferred to the Purchaser)
or the owner of Participation Interest 1 (if the extract delivered under sub-paragraph (i) above shows that the title to Participation Interest 2 was transferred to the Purchaser); 

  
 37 

	 	(iii)	 a copy (certified by the relevant Party’s authorized representative and bearing the corporate seal of the
relevant Party) of the Sellers’ written notice of repudiation under Clause 13.6, together with an evidence in writing of the receipt by the Purchaser of such notice in accordance with the provisions of Clause 19; 

 

	 	(iv)	 the Escrow Agent’s notices in writing in the form as set out in Schedule 5 hereto, evidencing that the
Participation Interest 1 Purchase Price and the Participation Interest 2 Purchase Price were not transferred from the Escrow Accounts to Seller 1’s pledge accounts and/or the Seller 1 Account as at the date of such acceptance of the Irrevocable
Offer; 

  

	 	(v)	 a certificate in writing of the accepting Party certifying that the Participation Interest 1 Purchase Price and
the Participation Interest 2 Purchase Price were not paid to Seller 1 (including to its pledge accounts) by the Escrow Agent or the Purchaser as at the date of such acceptance of the Irrevocable Offer; 

 

	 	(G)	 the material terms of a termination agreement in relation to this Agreement to be executed by way of acceptance
of an Irrevocable Offer: 

  

	 	(i)	 the relevant Parties shall confirm the termination of this Agreement as of the date of receipt by the Purchaser
of the Sellers’ notice of repudiation under Clause 13.6; 

  

	 	(ii)	 the Participation Interests in respect of which an entry was made in the USRLE, at any time from the date of
this Agreement to the date of acceptance of the Irrevocable Offer, showing that such Participation Interests are owned by the Purchaser (and such Participation Interests were acquired by the Purchaser in pursuance of this Agreement), shall be
returned to the relevant Seller free and clear of any Encumbrances (other than the Permitted Encumbrances) as a result of the termination of this Agreement, in particular: 

 

	 	•	 	 if title to Participation Interest 1 only was transferred to the Purchaser, then Participation Interest 1 shall
be transferred back to Seller 1; 

  

	 	•	 	 if title to Participation Interest 2 only was transferred to the Purchaser, then Participation Interest 2 shall
be transferred back to Seller 1; 

  

	 	•	 	 if title to Participation Interest 1 and Participation Interest 3 was transferred to the Purchaser, then
Participation Interest 1 shall be transferred back to Seller 1 and Participation Interest 3 shall be transferred back to Seller 2; 

  

	 	•	 	 if title to Participation Interest 2 and Participation Interest 3 was transferred to the Purchaser, then
Participation Interest 2 shall be transferred back to Seller 1 and Participation Interest 3 shall be transferred back to Seller 2, 

(and, for the avoidance of doubt, the terms of an Irrevocable Offer and a termination agreement in relation to this Agreement to be executed
by way of acceptance of an Irrevocable Offer, as set out in this Clause 13.13, shall apply as relevant as listed in this sub-paragraph (ii)); 

  
 38 

	 	(iii)	 provided that as a result of acceptance of the Irrevocable Offer the relevant Seller has become the owner of
the relevant Participation Interest (as set out in the sub-paragraph above), the relevant Parties shall do all necessary actions as may be required to procure the release and transfer of the Participation
Interest 1 Purchase Price and the Participation Interest 2 Purchase Price from the Escrow Account by the Escrow Agent to the Purchaser, to the extent the Participation Interest 1 Purchase Price and the Participation Interest 2 Purchase Price have
been earlier deposited to the Escrow Account, and/or the relevant Seller shall repay to the Purchaser the Participation Interests Purchase Price (or its relevant part) actually received by such Seller (including to its pledge accounts) under this
Agreement; 

  

	 	(iv)	 subject to and without prejudice to Clause 13.14, the Parties agree that the provisions of a termination
agreement in relation to this Agreement to be executed by way of acceptance of an Irrevocable Offer shall be without prejudice to any other remedies available to the Parties under this Agreement and the Applicable Law; 

 

	 	(v)	 the liability of the Purchaser under a termination agreement in relation to this Agreement to be executed by
way of acceptance of an Irrevocable Offer shall be limited as set out in Clause 13.16; 

  

	 	(H)	 For the avoidance of doubt, and without prejudice to the last paragraph of Clause 13.6, the Parties agree that
a termination agreement in relation to this Agreement to be executed by way of acceptance of an Irrevocable Offer shall constitute a disposal transaction (the return and repayment by the Purchaser to the relevant Seller or the Sellers) in relation
to the disposal under Article 21(11)(1) of the LLC Law of a participation interest in the charter capital of a company (Participation Interest(s)) owned, according to the USRLE, by the Purchaser as at the date of acceptance of the Irrevocable Offer.
In accordance with the provisions of Article 21(11)(4) and Article 21(11)(5) of the LLC Law, the Sellers (in the case set out in Clause 13.13(1)) or the Purchaser (in the case set out in Clause 13.13(2)) may accept an Irrevocable Offer, subject to
notarization of such acceptance. An Irrevocable Offer shall be deemed to be accepted upon the notarization of such acceptance. Upon such notarization, the notary shall, within two (2) Business Days of such notarization, deliver a notice of
acceptance to the offeror (i.e., the Purchaser or the Sellers, as applicable); 

  

	 	(I)	 the relevant Participation Interest shall be transferred from the Purchaser to the relevant Seller upon the
making of the relevant entry in the USRLE; 

  

	 	(J)	 for the avoidance of doubt, the provisions of this Clause 13.13 shall constitute an irrevocable offer, within
the meaning of Article 429.2 of the Russian Civil Code, containing all material terms and conditions of the termination agreement in relation to this Agreement; 

 

	 	(K)	 the Parties may not assign all or some of their respective rights under this option to any third party without
the other Parties’ prior consent in writing. 

  
 39 

 The provisions of this Clause 13.13 shall survive the termination of this Agreement. 

 

	13.14	 The Sellers acknowledge and agree that, if the Purchase performs its obligations to return any Participation
Interests (or its respective part) under this Agreement or the Restitution Agreement or otherwise as a result of termination of this Agreement, the relevant obligations of the Purchaser to return such Participation Interests (or its respective part)
on any ground shall terminate. 

 The provisions of this Clause 13.14 shall survive the termination of this Agreement. 

 

	13.15	 In accordance with Article 406.1 of the Russian Civil Code, the Sellers shall indemnify the Purchaser at its
request for any and all losses incurred or to be incurred by the Purchaser in connection with any claim or demand made against the Purchaser or any of its Affiliates by any of the Sellers, the Mechel Group companies or their Affiliates for the
return of a Participation Interest (or any part thereof) or the repayment of its value to a Seller under the Restitution Agreement or any provisions of the Applicable Law relating to the consequences of termination of this Agreement or as a result
of acceptance of an Irrevocable Offer, where such claim or demand is made or shall be satisfied after the Purchaser has already returned such Participation Interest (or its part) to the relevant Seller or repaid the full value of such Participation
Interest (or the relevant part of the Participation Interest Purchase Price as attributable to such Participation Interest (or its part)) to the Seller and such claim or demand result in the incurrence by the Purchaser of a repeated obligation to
return the same Participation Interest (or its part) or repay the value of such Participation Interest (or its part) to a Seller. In this case, the amount of the Purchaser’s losses shall be deemed to be equal to the amount of costs and expenses
paid by the Purchaser in connection with the incurrence of such a repeated obligation to return the same Participation Interest (or its part) or repay the value of such Participation Interest (or its part) to a Seller, plus any legal costs and other
reasonable documented costs and expenses paid by the Purchaser to defend itself against such claims or demands for double (repeated) recovery. For the avoidance of doubt, the Purchaser shall be fully indemnified for the losses as specified in this
Clause, notwithstanding the provisions of Clauses 8.2.4-8.2.5 and other provisions of this Agreement to the contrary. 

The provisions of this Clause 13.15 shall survive the termination of this Agreement. 

 

	13.16	 The Parties agree that the Purchaser shall not be liable (and shall not be liable to pay any compensation) to
the Sellers for any failure to return the relevant Participation Interest (or its part) to the relevant Seller as part of the Restitution or under the Restitution Agreement or as a result of acceptance of an Irrevocable Offer or for the return the
relevant Participation Interest (or its part) subject to any Encumbrance, other than the Permitted Encumbrances, if and to the extent that such failure or Encumbrance results from any loss or restriction of its rights in relation to, or any
Encumbrance over, the relevant Participation Interest (or its part) as a result of: 

  

	 	(A)	 the effect of any circumstances evidencing that any of the Seller 1 Title Business Warranties (in relation to
Participation Interest 1 and/or Participation Interest 2) or the Seller 2 Title Business Warranties (in relation to Participation Interest 3) is untrue or inaccurate; and/or 

 

	 	(B)	 the enforcement of any of the Permitted Encumbrances in relation to any Participation Interest (or its part);
and/or 

  
 40 

	 	(C)	 the existence or effect of any other circumstances occurring prior to the date of this Agreement (other than
any such circumstances resulting from any actions or omission of the Purchaser and its Affiliates) or resulting from any actions or omission of the Sellers, the Mechel Group companies and/or any of their Affiliates. 

The provisions of this Clause 13.16 shall survive the termination of this Agreement. 

 

	14	 ASSIGNMENT AND SUCCESSORS 

 

	14.1	 This Agreement shall be binding on and inure to the benefit of the successors of the Parties.

  

	14.2	 Without prejudice to Clause 14.3, no Party may without the other Parties’ prior consent in writing assign,
transfer or otherwise dispose of or grant any Encumbrance over all or any of its rights and/or obligations under this Agreement. 

  

	14.3	 The Sellers may, without the consent of the Purchaser, assign or grant any security interest over its rights to
receive the Participation Interests Purchase Price under this Agreement to GPB Bank (JSC) and/or VTB Bank. 

  

	15	 PAYMENTS 

  

	15.1	 Unless otherwise expressly provided for by this Agreement, any payment to be made by a Party to another Party
under this Agreement, shall be made by electronic transfer to: 

  

	 	(A)	 in relation to a payment to be made to Seller 1 - the Seller 1 Account or (to the extent required by Clause
3.2.2) the relevant pledge account of Seller 1; 

  

	 	(B)	 in relation to a payment to be made to Seller 2 - the Seller 2 Account or any other account as notified by
Seller 2 to the Purchaser and the Escrow Agent for this purpose in writing at least five (5) Business Days prior to the date of payment; 

  

	 	(C)	 in relation to a payment to be made to the Purchaser - the Purchaser Account or any other account as notified
by the Purchaser to the Sellers for this purpose in writing at least five (5) Business Days prior to the date of payment, 

and an obligation to make such payment shall be deemed to be duly discharged as of the time to be determined in accordance with the Applicable
Law and the applicable provisions of the Escrow Agreement (the “Payment Obligation Discharge”). 
  

	15.2	 An obligation to pay shall be deemed to be duly discharged upon the Payment Obligation Discharge.

  

	16	 COSTS 

  

	16.1	 Except as provided otherwise in this Agreement, each Party shall pay the costs of its legal advisers, auditors,
accountants and other persons and all costs and expenses incurred by it in connection with the preparation and performance of the Transaction Documents. 

  

	16.2	 Any costs and expenses relating to the notarization of this Agreement, the Restitution Agreement and acceptance
of an Irrevocable Offer in relation to Participation Interest 1 

  
 41 

	 	
and/or Participation Interest 2 and/or Participation Interest 3 and other notary’s services in connection with their notarization and execution, shall be borne by the Parties in the
following proportions: each of the Sellers – twenty five per cent. (25%), the Purchaser – fifty per cent. (50%). All costs and expenses in relation to the Restitution Agreement and acceptance of an Irrevocable Offer in relation to
Participation Interest 1 and Participation Interest 2 shall be borne by Seller 1. 

  

	16.3	 The Escrow Agent’s fees shall be paid by the Parties in the following proportions: Seller 1 – fifty
per cent. (50%), the Purchaser – fifty per cent. (50%). 

  

	17	 INVALIDITY 

  

	17.1	 If any provision of this Agreement is or is held invalid or unenforceable in accordance with any applicable
law, such provisions shall have no effect and be severed from this Agreement, provided that the validity or enforceability of the remaining provisions will not in any way be affected or impaired. 

 

	17.2	 The Parties shall then use all reasonable endeavours to replace the invalid or unenforceable provision by a
valid and enforceable substitute provision the effect of which is as close as possible to the intended effect of the invalid or unenforceable provision. 

  

	18	 ENTIRE AGREEMENT 

This Agreement (including Schedule hereto) and documents referred to herein constitute the entire agreement between the Parties and replace and
supersede any previous agreements, arrangements, undertakings and statements (whether written or oral, in electronic or any other form) between the Parties in relation to the the subject matter of this Agreement. 

 

	19	 NOTICES 

  

	19.1	 Except as provided otherwise in this Agreement, any notice, request or communication (a
“Notice”) to be made or delivered by a Party under or in connection with this Agreement shall be made in writing in Russian and signed by such Party and shall specify a person to whom the Notice is addressed. A Notice shall be
delivered by hand or a courier (DHL, UPS, Pony Express, TNT or any other internationally recognised courier service) or by recorded delivery to the recipient Party’s address as specified in Clause 19.4. 

 

	19.2	 A Notice delivered by hand or a courier (DHL, UPS, Pony Express, TNT or any other internationally recognised
courier service) or by recorded delivery shall be deemed received upon its delivery, provided that, where such delivery by hand or a courier (DHL, UPS, Pony Express, TNT or any other internationally recognised courier service) or by recorded
delivery occurs after 18:00 on a Business Day or on a day which is not a Business Day, such Notice shall be deemed to be delivered at 9:00 of the next Business Day. References in this Clause 19.2 to a time of day are to the time of day at the
location of the recipient. 

  

	19.3	 The Parties also agree that a copy of each Notice sent to the other Parties shall also be sent by electronic
mail to the email address provided for in Clause 19.4, provided that a Notice that was sent by electronic mail only shall not be deemed to be duly delivered for the purpose of this Agreemnet. 

  
 42 

	19.4	 The address of each Party for the purpose of Clause 19.1 is: 

 

	 	(A)	 Seller 1: 

  

	 	(i)	 address: office 216, 1 Krasnoarmeyskaya street, Moscow, 125167; 

 

	 	(ii)	 email address: mechel@mechel.com; 

 

	 	(iii)	 attention: Igor Valerievich Khafizov; 

 

	 	(iv)	 cc: Mechel PAO, 1 Krasnoarmeyskaya street, Moscow, 125167, email address: mechel@mechel.com, attention:
Oleg Viktorovich Korzhov; 

  

	 	(B)	 Seller 2: 

  

	 	(i)	 address: office 134, 1 Krasnoarmeyskaya street, Moscow, 125167; 

 

	 	(ii)	 email address: info@mecheltrans.ru; 

 

	 	(iii)	 attention: Alexey Viktorovich Lebedev; 

 

	 	(iv)	 cc: Mechel PAO, 1 Krasnoarmeyskaya street, Moscow, 125167, email address: mechel@mechel.com, attention:
Oleg Viktorovich Korzhov; 

  

	 	(C)	 Purchaser: 

  

	 	(i)	 address: 6 Presnenskaya embankment, bld. 2, floor 39, 123317, Moscow; 

 

	 	(ii)	 email address: ibelyanova@wfal.ru; 

 

	 	(iii)	 attention: Irina Vladimirovna Belyanova. 

 

	19.5	 A Party shall notify the other Party of any change to its name or address or officer to whose attention a
Notice shall be marked for the purpose of this Clause 19, within five (5) Business Days after such a change, provided that such Notice shall only become effective: 

 

	 	(A)	 on the date specified in the Notice as the effective date of such change; or 

 

	 	(B)	 if such date is not specified or falls less than five (5) Business Days after the date the Notice was
sent, the date falling five (5) Business Days after the date the Notice of such change was sent. 

  

	19.6	 The Parties agree that, if the addressee declines to receive a Notice or fails to receive a Notice for any
reason that is outside the sender’s control (e.g., the addressee was absent at the delivery address or failed to appear in the post office to receive the Notice etc.), the Notice shall be deemed to be received by the addressee. In such case,
the Notice shall be deemed to be duly delivered on the date of the documented attempt to deliver it to the addressee. 

  
 43 

	20	 GOVERNING LAW AND DISPUTE RESOLUTION 

 

	20.1	 This Agreement shall be governed by and construed in accordance with the laws of the Russian Federation.

  

	20.2	 Any dispute, controversy or claim arising out of or in connection with this Agreement, including any questions
relating to its performance, breach, termination or invalidity, shall be settled by the Parties by negotiations. If the Parties are unable to settle the matter by negotiations within thirty (30) days after one of the Parties notifies the other
of the dispute in writing, such dispute shall be referred to the Moscow City Commercial Court, unless another court has the exclusive jurisdiction over such dispute in accordance with mandatory provisions of the laws and regulations of the Russian
Federation and such exclusive jurisdiction may not be disapplied by agreement between the Parties. 

  

	21	 MISCELLANEOUS 

 

	21.1	 Unless otherwise expressly set out in this Agreement, any amendment and supplement to this Agreement shall be
made in writing by the Parties executing an amendment agreement, provided that such amendment agreement shall be duly signed by the Parties or their authorized representatives and notarized, except as provided by this Agreement.

  

	21.2	 Each Party shall in a timely manner execute any document and/or do anything else as may be required to give
effect to this Agreement and shall procure that any relevant third party does the same. 

  

	21.3	 If any action and/or obligation hereunder (1) requires the state registration (including registration of
transfer of the Participation Interests from the Sellers to the Purchaser) or any other actions by the Governmental Authorities or a third party (including a bank) that is not an Affiliate of any of the Parties, and (2) may not be performed as
a result of an outbreak and/or spread of potentially dangerous infectious diseases creating a public health hazard, i.e. an infectious disease attacking humans with severe symptoms and high mortality and disability rates and fast spread among people
(epidemics), or a pandemic and/or the introduction of certain measures in the Russian Federation in connection with such events, including as a result of the 2019-nCoV outbreak and spread, then the deadlines for the performance by the Parties of
their obligations that are affected by actions by the Governmental Authorities or such third parties shall be extended for the period during which such objective restrictions continue. 

 

	21.4	 Any provision of this Agreement (and any other Transaction Document) that remains outstanding as at the date of
this Agreement but which can in fact be fulfilled shall remain in full force and effect and (unless otherwise expressly set out in this Agreement) shall be valid indefinitely. 

 

	21.5	 Schedules to this Agreement constitute an integral part hereof, and any reference to this Agreement shall
include a reference to this Agreement and all Schedules hereto. 

  

	21.6	 The Parties confirm that the terms and conditions of this Agreement have been drafted and negotiated by the
Parties jointly. Each Party acknowledges and agrees that it fully understands the contents of this Agreement and that the terms and conditions of this Transaction are not onerous. All comments in respect of this Agreement and questions relating to
it are reflected in this Agreement. The Parties acknowledge that they execute this Agreement acting voluntarily and on an equal footing. The Parties further acknowledge that 

  
 44 

	 	
they do not propose any amendments supplements to the terms and conditions hereof and that this transaction is in accordance with their good faith intentions and is not a sham transaction
executed in order to conceal another transaction. 

  

	21.7	 The Parties hereby confirm that in executing this Agreement they do not act under influence of material
misrepresentation (Article 178 of the Russian Civil Code) or under influence of fraud, coercion, threat or adversary circumstances (Article 179 of the Russian Civil Code). 

 

	21.8	 Each Party unconditionally acknowledges and agrees that it has has taken independent legal advice from a
qualified counsel in relation to all matters contemplated by this Agreement, including the provisions of this Clause, and agrees, having considered the terms of this Agreement as a whole, that the provisions of this Agreement, including this Clause,
are just and reasonable. 

  

	21.9	 Unless otherwise expressly set out in this Agreement, the rights, powers and remedies provided in this
Agreement are cumulative and are not exclusive of any rights, powers or remedies provided by the Applicable Law. 

  

	21.10	 In accordance with Article 450.1(7) of the Russian Civil Code, and without prejudice to Clause 8, no failure to
exercise nor any delay in exercising any right, power or remedy under the Applicable Law, this Agreement or any other document related hereto shall: 

  

	 	(A)	 affect the validity and enforceability of such right, power or remedy; or 

 

	 	(B)	 constitute a waiver thereof. 

 

	21.11	 No single or partial exercise of any right, power or remedy under the Applicable Law or this Agreement shall
prevent any further or other exercise thereof or the exercise of any other right, power or remedy. 

  

	21.12	 This Agreement was read out by the Notary before its execution. The Parties who executed this Agreement before
the Notary hereby confirm that they fully understand the contents of this Agreement. The Parties have received all clarifications in respect to this Agreement from the Notary, they do not propose any amendments or supplements to the terms and
conditions as set out in this Agreement, this transaction is in accordance with their true intentions and is not a sham transaction executed in order to conceal another transaction. 

 

	21.13	 In executing this Agreement, each Party represents to the other Party before the Notary that as at the date of
this Agreement: 

  

	 	(A)	 any restriction contemplated by this Agreement is reasonable, fair and necessary to protect the interests of
the Party in whose benefit such restriction is provided; 

  

	 	(B)	 there are no circumstances forcing the Party to enter into this Agreement; 

 

	 	(C)	 there are no circumstances forcing the Party to enter into this Agreement and perform any actions contemplated
hereby under onerous terms due to a combination of adverse circumstances; 

  

	 	(D)	 this Agreement was read out in Russian by the Notary before its execution; 

  
 45 

	 	(E)	 the terms and conditions of this Agreement were drafted by the Parties acting jointly and, in executing of this
Agreement, each Party was able to negotiate the terms of specific provisions hereof; and 

  

	 	(F)	 the Parties have received all clarifications in respect to this Agreement from the Notary, they do not propose
any amendments or supplements to the terms and conditions as set out in this Agreement, this transaction is in accordance with their true intentions and is not a sham transaction executed in order to conceal another transaction.

  

	21.14	 The meaning of Articles 7 (Company Members), 8 (Rights of Company Members), 9 (Obligations of Company Members),
14 (Charter Capital. Participation Interests), 15 (Payment for Participation Interests), 21 (Transfer of Participation Interest or Part Thereof to Other Company Members or Third Parties), 45 (Interested Party Transaction), 46 (Major Transactions) of
the LLC Law, Article 28 (Transactions Involving Shares (Participation Interests), Assets of and Rights to Commercial Organizations Requiring Prior Consent of Competition Authority) of the Federal Law No.
135-FZ “On protection of competition” dated 26 July 2006 (as amended), Articles 1 (Main Principles), 10 (Limitation of Civil Rights), 167 (General Provisions on Consequences of Invalidity of
Transaction), 180 (Consequences of Invalidity of Part of Transaction), 209 (Scope of Ownership Rights), 307 (Concept of Obligation), 310 (Inadmissibility of Unilateral Refusal to Perform Obligation), 328 (Reciprocal Performance of Obligation), 405
(Delay by Debtor), 406.1 (Recovery of Special Losses), 421 (Freedom of Contract), 431.2 (Warranties), 450 (Grounds for Amendment and Termination of Contract), 450.1 (Repudiation of Contract and Waiver of Rights), 451 (Amendment and Termination of
Contract Due to Material Change in Circumstances), 452 (Procedure for Amendment and Termination of Contract), 453 (Consequences of Amendment and Termination of Contract), 454 (Sale and Purchase Agreement), 460 (Seller’s Duty to Transfer Goods
Free of THIRD Party Rights), 463 (Consequences of Failure to Transfer Goods), 488 (Payment for Goods Sold on Credit) of the Russian Civil Code were clarified by the Notary and are fully understood by the Parties. 

 

	22	 COUNTERPARTIES AND LANGUAGE 

 

	22.1	 This Agreement is executed in Russian in four (4) equal counterpart, one (1) counterpart for each of
Seller 1, Seller 2 and the Purchaser, and one counterpart to be kept in files of Arina Evgenyevna Lemekhova, a notary public of Moscow. 

  

	22.2	 This Agreement is executed in Russian. 

IN WITNESS WHEREOF this Agreement has been executed by the Parties’ duly authorised representatives on the date stated at the beginning of this
Agreement. 
 Remainder of the page intentionally left blank. Signature page and Schedules follow. 

  
 46 

 SIGNATURES 

On behalf of the Purchaser: 
  

 
 corporate seal 

Name: Irina Vladimirovna Belyanova 

Title: CEO 
 On behalf of
Seller 1: 
  
  

corporate seal 
 Name: Igor
Valerievich Khafizov 
 Title: CEO of Mechel-Mining OOO 

On behalf of Seller 2: 
  

 
 M.

.. 
 Name: Alexey Viktorovich Lebedev 

Title: CEO of Mechel-Trans Management OOO 

  
 47 

 Moscow, the Russian Federation. 

The twenty first of April two thousand and twenty. 
 This
Agreement was certified by me, Tatiana Alexeevna Popova, a substitute for Arina Evgenievna Lemekhova, a notary public of the city of Moscow. 
 The contents
of this Agreement is in accordance with the intentions of the parties to this Agreement. 
 The Agreement was signed before me. 

The identities of the signatories to the Agreement and their powers and capacity were verified. 

The capacity of the relevant legal entities and the powers of their representatives were checked. 

The ownership of the relevant assets was checked. 
 Registered in
the register under No. 77/822-n/77-2020-10-119. 

The amount of state duty paid (in accordance with tariffs): RUB 285,000. 

The amount paid for legal and technical services: RUB 30,000. 

The place of notarization: bld. 4, 24 Ozerkovskaya embankment, Moscow. 

T.A. Popova 

  
 48 

 Schedule 1    Definitions and Interpretation 

Part 1 Capitalized Terms and Definitions 

In this Agreement, including its Preamble and Schedules, capitalized terms and definitions shall have the following meanings: 

“Assets” means all of the relevant Company’s assets, both tangible and intangible, current and
non-current assets, including any property and property rights, and “Asset” means any of them; 

“Affiliate” means, with respect to any person (the “first person”), a person that directly or indirectly Controls, or
is Controlled by, or is under common Control with, the first person, and its affiliate persons under the Applicable Law; 
 “VTB Bank”
means VTB Bank (Public Joint-Stock Company), a company incorporated and existing under the laws of the Russian Federation, principal state registration number (OGRN) 1027739609391, with its registered address at: 29 Bolshaya Morskaya street, Saint
Petersburg, 190000; 
 “Bank GPB (JSC)” means GAZPROMBANK (Joint-Stock Company), a company incorporated and existing under the laws of the
Russian Federation, principal state registration number (OGRN) 1027700167110, with its registered address at: bld. 1, 16 Nametkina street, Moscow, 117420; 

“Irrevocable Offer” has the meaning given to it in Clause 13.13; 

“Seller 1 Business Warranties” has the meaning given to it in Clause 6.4; 

“Seller 2 Business Warranties” has the meaning given to it in Clause 6.5; 

“Third Party Indemnity” has the meaning given to it in Clause 8.5.1; 

“VEB” means State Development Corporation VEB.RF; 

“Russian Civil Code” means the Civil Code of the Russian Federation (Part I enacted by Federal Act No.
51-FZ dated 30 November 1994; Part II enacted by Federal Act No. 14-FZ dated 26 January 1996; Part III enacted by Federal Act No. 146-FZ dated 26 November 2001; and Part IV enacted by Federal Act No. 230-FZ dated 18 December 2006) (as amended); 

“Governmental Authority” means, in any jurisdiction, any governmental or municipal authority (whether executive, legislative or any other
authority); any body, entity or person exercising public regulatory, control or supervisory authorities in accordance with the Application Law; any entity or another person exercising public functions; self-regulating bodies; any court, arbitration,
tribunal or any other judicial body; any supra-national body or international organization exercising administrative or public authorities; 
 “VTB
Bank Group” means any of the following: 
  

	 	(A)	 VTB Bank; 

  

	 	(B)	 any Affiliate of VTB Bank; 

  
 49 

 “Mechel Group” means any of the following: 

 

	 	(A)	 Mechel; 

  

	 	(B)	 companies included in the list of affiliates of Mechel as set out in Schedule 4; 

“Participation Interests Transfer Date” means the date of making an entry in the USRLE in relation to the registration of transfer of title
to each of the Participation Interests from the relevant Seller to the Purchaser (for the avoidance of doubt, if such entries in the USRLE are made on different dates, the Participation Interests Transfer Date shall be the date of the latest of such
entries); 
 “Participation Interest 1 and Participation Interest 2 Transfer Date” means the date of making an entry in the USRLE in
relation to the registration of transfer of title to Participation Interest 1 and Participation Interest 2 from Seller 1 to the Purchaser (for the avoidance of doubt, if such entries in the USRLE are made in different dates, the Participation
Interest 1 and Participation Interest 2 Transfer Date shall be the date of the latest of such entries); 
 “Participation Interest 3 Transfer
Date” means the date of making an entry in the USRLE in relation to the registration of transfer of title to Participation Interest 3 from Seller 2 to the Purchaser; 

“Escrow Agreement” means each of the following escrow agreements: (1) No. 1 dated 20 April 2020 between Bank GPB (JSC) as
escrow agent, the Purchaser as client and Seller 1 as beneficiary; (2) No. 2 dated 20 April 2020 between Bank GPB (JSC) as escrow agent, the Purchaser as client and Seller 1 as beneficiary, and (3) No. 3 dated 20 April
2020 between Bank GPB (JSC) as escrow agent, the Purchaser as client and Seller 1 as beneficiary (together, the “Escrow Agreements”); 

“Sublease Agreements” means the following sublease agreements: 
  

	 	(A)	 No. 1481-2018 dated 7 December 2018 pursuant to which Seller 1
sub-leased certain machinery and equipment received from GTLK PJSC to Company 1; 

  

	 	(B)	 No. 2438 dated 6 April 2018 pursuant to which Seller 1
sub-leased certain machinery and equipment received from GTLK PJSC to Company 1; 

“Transaction Documents” means this Agreement, the Seller 1 Disclosure Letter, the Seller 2 Disclosure Letter, the Escrow Agreements and any
other documents to be executed under any of the aforementioned documents or designated as such by the Parties; 
 “Participation Interests”
has the meaning given to it in Preamble (C), and “Participation Interest” means any of them; 
 “Participation Interest 1”
has the meaning given to it in Preamble (A); 
 “Participation Interest 2” has the meaning given to it in Preamble (B); 

“Participation Interest 3” has the meaning given to it in Preamble (C); 

“USRLE” means the Unified State Register of Legal Entities of the Russian Federation; 

“Warranties” means the Seller 1 Business Warranties, the Seller 2 Business Warranties and the General Warranties, and
“Warranty” means any of them; 

  
 50 

 “Interested Persons” has the meaning given to it in Clause 7.1.7(A); 

“Competition Law” means the Federal Law No. 135-FZ “On protection of competition” dated
26 July 2006, as amended; 
 “LLC Law” means the Federal Law of the Russian Federation No.
14-FZ “On limited liability companies” dated 8 February 1998, as amended; 
 “KGOK Share
Pledge” means the pledge over seventy five thousand thirty eight (75,038) ordinary registered non-documentary shares in Korshunov Mining Plant Public PAO (principal state registration number (OGRN)
1023802658714), state registration number of the share issue 1-01-20992-F dated 27 June 2003, owned by Mechel-Mining
Joint-Stock Company, comprising thirty per cent. (30%) of the share capital of Korshunov Mining Plant PAO, as created in security of Company 1’s obligations under the VEB Facility; 

“VTB Bank Pledge Account” means the following pledge account of Seller 1 with VTB Bank the rights and benefits to which have been pledged by
Seller 1 in favour of VTB Bank: 
  

	 	(A)	 Account number: 40702810416800001921; 

 

	 	(B)	 Bank: VTB Bank (public joint-stock company), Zemlyanoy Val Office of the Moscow Branch of VTB Bank (PJSC);

  

	 	(C)	 Correspondent account: 30101810700000000187 with the Chief Department of the Central Bank of the Russian
Federation in the Central Federal District, Moscow; 

  

	 	(D)	 BIC: 044525187; 

  

	 	(E)	 taxpayer’s identification number (INN)/tax registration reason code (KPP): 7702070139/783501001;

 “Bank GPB (JSC) Pledge Account” means the following pledge account of Seller 1 with Bank GPB (JSC) the rights and
benefits to which have been pledged by Seller 1 in favour of Bank GPB (JSC): 
  

	 	(A)	 Account number: 40702810800360000624; 

 

	 	(B)	 Bank: Bank GPB (JSC), branch 036/0000 in Kemerovo; 

 

	 	(C)	 Correspondent account: 30101810200000000748; 

 

	 	(D)	 BIC: 043207748; 

  

	 	(E)	 taxpayer’s identification number (INN)/tax registration reason code (KPP): 7744001497/420502001;

 “Seller Indemnitees” has the meaning given to it in Clause 7.2.1(A)(i); 

“Purchaser RIP Losses” has the meaning given to it in Clause 7.1.1; 

  
 51 

 “Purchaser Permitted Payables Losses” has the meaning given to it in Clause 7.1.7(B);
 
 “Purchaser Transactions Losses” has the meaning given to it in Clause 7.1.7(A); 

“Purchaser Losses” has the meaning given to it in Clause 7.1.7(B); 

“Company 2 Mortgage” means a (real property) mortgage agreement dated 24 March 2016 between Bank GPB (JSC) as mortgagee and Company 2 as
mortgagor, as certified by Lemekhova A.E., a notary public of the city of Moscow, on 24 March 2016 and registered under number 6-128 (as amended), in relation to the following property: construction of an
access railroad to the Elga coal field from the Ulak station to the Elga station; designation: railway construction, length: 317000 m; completeness: 91%; address (location): Zeisky district, Amur region; Neryungri district, the Sakha Republic
(Yakutia); cadastral (conditional) number: 0:0:0:277, in security of debtors’ obligations under facility agreement No. 226/12-B dated 27 April 2012 (as amended), facility agreement No. 227/12-B’ dated 27 April 2012 (as
amended), facility agreement No. 4211-051 dated 30 September 2011 (as amended), facility agreement No. 2613-173-K dated 12 April 2013 (as amended),
facility agreement No. 2612-200-K dated 2 May 2012 (as amended), facility agreement No. 2613-172-K OT, 12.04.2013 (as amended), facility
agreement No. 49/11-P dated 15.03.2011 (as amended), overdraft facility agreement No. 2615-187-K dated 25.06.2015 (as amended), overdraft facility agreement
No. 2615-188-K dated 25.06.2015 (as amended), facility agreement No. 84/13-B dated 26.04.2013 (as amended), facility agreement No. 31/09-B dated 06.02.2009 (as amended), facility agreement
No. 85/13-B dated 26.04.2013 (as amended), facility agreement No. 2612-196-K dated 04.05.2012 (as amended), facility agreement No. 2612-195-K dated
03.05.2012 (as amended); 
 “Data Room” means each of the following virtual data rooms: (1) a data room created and maintained by
iDeals Solutions LLC, a professional provider, at https://www1.idealsvdr.com/v3/RoomP2/#/documents?path=1303759:1304300, as at 24:00 (MSK) on 10 April 2020, the contents of which was disclosed to the Purchaser for the purpose of
limitation of the Sellers’ liability for any inaccuracy in the Warranties by way of recording onto three (3) USB flash-drives (each separately) (one for each of the Parties) of an e-file in the
Download.zip format, the size of the e-file in zip format: 10.3 GB (11,125,209,908 bites), Total Commander 9.51 MD5 checksum: “89C2744FF6FDCF60086968C2854E704F”; and (2) a data room created and
maintained by the law firm “Monastyrsky, Zyuba, Stepanov & Partners” at https://portal.mzs.ru/extranet/contacts/personal/user/172/disk/path/, as at 24:00 (MSK) on 10 April 2020, the contents of which was disclosed to
the Purchaser for the purpose of limitation of the Sellers’ liability for any inaccuracy in the Warranties by way of recording onto three (3) USB flash-drives (each separately) (one for each of the Parties) of an e-file in the

..zip format, the size of the e-file in zip format: 14.1 GB (15,210,733,994 bites), Total Commander 9.51 MD5 checksum: “6D820C3580DE08F725AD3AB90B9A5965”. 

“Control” means, with respect to any person, the possession, directly or indirectly, of power to direct or cause the direction of management
and policies (whether through ownership of voting shares (interests), by contract or otherwise) of such person, and a person (controlled person) shall be deemed to be under control of another person (controlling person) where such controlling
person: 
  

	 	(A)	 owns or controls, directly or indirectly, more than fifty per cent. (50%) of votes at the general meetings of
the controlled person; 

  
 52 

	 	(B)	 has the right or power, whether de jure or de facto, to appoint (elect) or remove, or cause the
appointment (election) or removal of, more than fifty per cent. (50%) of members of the board of directors of the controlled person; or 

  

	 	(C)	 has the right or power, whether de jure or de facto, to appoint (elect) or remove the chief
executive officer of the controlled person, 

 and the terms “Controlling”, “Controlled” and
“under common Control with” shall be construed accordingly; 
 “Confidential Information” has the meaning given to it in
Clause 10.1; 
 “SHAs” means, in aggregate, SHA 1, SHA 2 and SHA 3, and “SHA” means any of them; 

“SHA 1” means participants’ agreement in relation to Company 1 dated 1 April 2016 between Seller 1 and Bank GPB (JSC); 

“SHA 2” means participants’ agreement in relation to Company 2 dated 1 April 2016 between Seller 1 and Bank GPB (JSC); 

“SHA 3” means participants’ agreement in relation to Company 3 dated 1 April 2016 between Seller 1 and Bank GPB (JSC); 

“VEB Facility” means facility agreement No. M00000/1507 dated 20 September 2017 between VEB as lender and Company 1 as debtor; 

“RIP Limitation of Liability” has the meaning given to it in Clause 7.1.5; 

“Purchaser Maximum Liability” has the meaning given to it in Clause 8.2.7; 

“Seller 1 Maximum Liability” has the meaning given to it in Clause 8.2.4(A); 

“Seller 2 Maximum Liability” has the meaning given to it in Clause 8.2.4(B); 

“Mechel” means Mechel PAO, a company incorporated and existing under the laws of the Russian Federation, principal state registration number
(OGRN) 1037703012896, with its registered address at: 1 Krasnoarmeyskaya street, Moscow, 125167; 
 “Payment Obligation Discharge” has the
meaning given to it in Clause 15.1; 
 “IFRS” means the International Financial Reporting Standards issued by the International Accounting
Standards Board; 
 “Tax Audit” has the meaning given to it in Clause 7.1.1; 

“New SPA 1” means a participation interest sale and purchase agreement in relation to thirty four per cent. (34%) of the charter capital of
Company 1 that Seller 1 as purchaser and Bank GPB (JSC) as seller intended to execute following the delivery by Bank GPB (JSC) of an offer dated 19 August 2019 and its acceptance by Seller 1 on 20 September 2019; 

  
 53 

 “New SPA 2” means a participation interest sale and purchase agreement in relation to
thirty four per cent. (34%) of the charter capital of Company 2 that Seller 1 as purchaser and Bank GPB (JSC) as seller intended to execute following the delivery by Bank GPB (JSC) of an offer dated 19 August 2019 and its acceptance by Seller 1
on 20 September 2019; 
 “New SPA 3” means a participation interest sale and purchase agreement in relation to thirty four per cent.
(34%) of the charter capital of Company 3 that Seller 2 as purchaser and Bank GPB (JSC) as seller intended to execute following the delivery by Bank GPB (JSC) of an offer dated 19 August 2019 and its acceptance by Seller 2 on 20 September
2019; 
 “Notary” means Arina Evgenievna Lemekhova, a notary public of the city of Moscow, and her temporary replacements; 

“Encumbrance” means: 
  

	 	(A)	 any mortgage, pledge, lease, lien or another encumbrance of any kind, or any conditional sale agreement,
including option agreement and put option (other than any encumbrances arising out of this Agreement), or any other arrangement in relation to the above; and 

  

	 	(B)	 any right, pre-emption right, right of first refusal or restriction of
any kind and nature, including limitation on the use, voting, transfer, receipt of income or any other aspect of the ownership right or any other third party right, 

and includes any other encumbrances, preference or security interests or arrangements of any kind in respect of the relevant assets and/or interests, and the
terms “Encumber” and “Encumbered” shall be construed accordingly; 
 “Companies” has the meaning given to
it in Preamble (C), and “Company” means any of them; 
 “Company 1” has the meaning given to it in Preamble (A); 

“Company 2” has the meaning given to it in Preamble (B); 

“Company 3” has the meaning given to it in Preamble (C); 

“General Warranties” has the meaning given to it in Clause 6.1; 

“Final Court Decision” means a judgment on the merits issued by an commercial court of any level (including a judgment issued upon a re-trial of the dispute in an arbitration court of any level, other than any such re-trial based on new or newly discovered evidence), provided that: 

 

	 	(A)	 such judgment has become effective; and 

 

	 	(A)	 any of the following conditions is satisfied: 

 

	 	(i)	 no appeal has been filed against such judgment within the term and in the manner as provided for by applicable
laws and regulations, and the applicable time to file an appeal has expired; or 

  
 54 

	 	(ii)	 following an appeal that has been filed against such judgment within the term and in the manner as provided for
by applicable laws and regulations, such judgment was upheld; 

 provided that, for the purpose of this definition, an
“appeal” means an appeal filed against the judgment with the competent commercial court of appeal and/or cassation arbitration court, and the term “appeal” shall not include an application for the review of the
judgment based on new or newly discovered evidence; 
 “Registration Authority” means the competent Russian governmental authority
authorized to carry out state registration of legal entities; 
 “Trigger Event” has the meaning given to it in Clause 13.13(D); 

“Purchaser RIP Losses Trigger Event” has the meaning given to it in Clause 7.1.1; 

“Purchaser Permitted Payables Losses Trigger Events” has the meaning given to it in Clause 7.1.7(B); 

“Purchaser Transactions Losses Trigger Event” has the meaning given to it in Clause 7.1.7(A); 

“Purchaser Losses Trigger Events” has the meaning given to it in Clause 7.1.7(B); 

“Seller Losses Trigger Events” has the meaning given to it in Clause 7.2.1; 

“Seller 1 Disclosure Letter” means a letter in the agreed form containing disclosure by Seller 1 against Warranties given by Seller 1, an
original copy of which was delivered by Seller 1 to the Purchaser upon the execution of this Agreement; 
 “Seller 2 Disclosure Letter”
means a letter in the agreed form containing disclosure by Seller 2 against Warranties given by Seller 2, an original copy of which was delivered by Seller 2 to the Purchaser upon the execution of this Agreement; 

“Claim” means a claim or demand made by the Purchaser against any Seller in connection with an inaccuracy of any Warranty, or the
Purchaser’s claims in relation to indemnification of the Purchaser for Losses hereunder; 
 “Applicable Law” means all laws,
subordinate legislation, other regulations, constitutions, international and national treaties, rules, directives, decrees, orders and resolutions of the Governmental Authorities in the relevant jurisdiction, in each case, as in effect as at the
date of this Agreement or an agreement executed in pursuance of or in connection with this Agreement or at any other relevant time; 
 “Business
Day” means a day (other than a Saturday or Sunday or a public holiday or any other officially announced non-business days in the Russian Federation) when banks are open for ordinary banking business
in Moscow (Russia). For the purpose of this Agreement, references to “Business Day” shall be interpreted as to mean that, if any specific days are officially announced non-business days in the
Russian Federation due to the spread of a coronavirus infection or any related diseases in the world, including the Russian Federation, then, to the extent certain organizations (including notary’s offices) and the Governmental Authorities
whose cooperation is required to give effect to the 

  
 55 

 
provisions of this Agreement continue their operations and are open for clients and execution of documents, the Parties shall use their reasonable efforts to do any actions as required by this
Agreement on such officially announced non-business days in the Russian Federation; 

“Proceedings” means any dispute or civil, criminal, regulatory or administrative claim, action, suit, litigation, investigation, arbitration,
court proceeding or any form of alternative dispute resolution, or any other process or hearing; 
 “Permitted Receivables” means the
accounts receivable, as specified in Schedule 8 hereto, in the amount of three billion seventeen million eight hundred twenty three thousand two hundred twenty two rubles (RUB 3,017,823,222) as at 17 April 2020; 

“Permitted Payables” means: 
  

	 	(A)	 the Companies’ accounts payable to the Purchaser and its Affiliates; and 

 

	 	(B)	 the Companies’ accounts payable to third parties as at 17 April 2020 in the amount of two billion one
hundred twenty one million one hundred fifty six thousand seven hundred and three rubles (RUB 2,121,156,703); 

 “Permitted Off-Balance Sheet Liabilities” means: 
  

	 	(A)	 guarantees and suretyships in favour of the Purchaser and its Affiliates; 

 

	 	(A)	 the Companies’ liabilities under leases and financial leases as specified in Schedule 7 hereto;

  

	 	(B)	 guarantees and suretyships that are the Permitted Encumbrances; 

“Permitted Encumbrances” means: 
  

	 	(A)	 in relation to Participation Interest 1, (i) the pledge of a portion of Participation Interest 1 comprising one
point ninety nine per cent. (1.99%) of the charter capital of the Company in favour of Bank GPB (JSC), and (ii) the pledge of a portion of Participation Interest 1 comprising forty nine per cent. (49%) of the charter capital of the Company in
favour of VEB; 

  

	 	(B)	 in relation to Participation Interest 2, the pledge of a portion of Participation Interest 2 comprising one
point ninety nine per cent. (1.99%) of the charter capital of the Company in favour of Bank GPB (JSC); 

  

	 	(C)	 in relation to Participation Interest 3, the pledge of a portion of Participation Interest 3 comprising one
point ninety nine per cent. (1.99%) of the charter capital of the Company in favour of Bank GPB (JSC); 

  

	 	(D)	 in relation to any Participation Interest, an Encumbrance in favour of the Purchaser; 

 

	 	(E)	 in relation to the Assets of any Company, an Encumbrance in favour of the Purchaser or its Affiliates;

  
 56 

	 	(F)	 in relation to the Assets of Company 2, the Company 2 Mortgage in favour of Bank GPB (JSC);

  

	 	(G)	 in relation to the Assets of Company 1, the pledge and mortgage of moveable and immovable assets in favour of
VEB under the VEB Facility; 

 “Permitted Suretyships” means, together, the Sellers’ Permitted Suretyships and the
Company 3 Permitted Suretyships, where: 
 “Sellers’ Permitted Suretyships” means the following suretyships: 

 

	 	(A)	 No. 01-

 dated 14.08.2017 pursuant to which Seller 1 guarantees the performance by Company 1 of its obligations to GTLK PJSC (liability cap is 100 mln rubles); 

 

	 	(B)	 No.

 1-

18/KEBR/0509 dated 29.12.2018 pursuant to which Seller 1 guarantees the performance by Company 3 of its obligations to VTB Bank under Framework Guarantee No.

18/KEBR/0509 dated 29 December 2018 (liability cap is 50 mln rubles); 

  

	 	(C)	 No.

 255/01-14/01 dated 30.09.2014 and No.

 255/01-11 dated 04.08.2011 pursuant to which Seller 2 and Mechel guarantee the performance by Company 3 of its obligations to VTB Leasing JSC (liability cap is 1,214 mln rubles);

 “Company 3 Permitted Suretyships” means the following suretyships: 

 

	 	(A)	 suretyships No.

 156/05 – 14/01 dated 30.09.2014, No.

 156/06 – 14/01 dated 30.09.2014, No.

 156/07 – 14/01 dated 30.09.2014, No.

 156/08 – 14/01 dated 30.09.2014, No.

 156/10 – 14/01 dated 30.09.2014, pursuant to which Company 3 guarantees the performance by Seller 2 of its obligations to VTB Leasing JSC (liability cap is 5,395 mln rubles); 

 

	 	(B)	 suretyships No.

/7/327F dated 30.09.2014 pursuant to which Company 3 guarantees the performance by Seller 2 of its obligations to FinanceBusinessGroup LLC (liability cap is 403.1 mln rubles); 

“Regional Investment Project” means the “Development of Elga Coal Complex within the North West Area of the Elga Coal Field in the Sakha
Republic (Yakutia)” investment project that is a qualifying regional investment project within the meaning of chapter 3.3 of the Tax Code of the Russian Federation, with Company 1 being its project participant pursuant to Order of the ministry
of Economy of the Sakha Republic (Yakutia) No. 128-

 dated 7 September 2015 “On inclusion of Elgaugol LLC in the register of participants of regional investment projects”; 

“Restitution” has the meaning given to it in Clause 13.6; 

“Debt Restructuring” means the full restructuring of debt owed by the Mechel Group companies to the following persons (each individually):
(i) GPB Bank (JSC) or (ii) the VTB Bank Group; 
 “ruble” means Russian rubles, the lawful currency of the Russian Federation; 

“Transaction” means, in aggregate, the transactions in relation to the sale and purchase of the Participation Interests under this Agreement;

  
 57 

 “Agreed Contracts” means any contracts existing as at the date of this Agreement between
Company 1, Company 2 and Company 3, on one hand, and any of the Mechel Group companies, on the other hand, that are required for the continuous operation of the Companies and listed in Schedule 6; 

“Restitution Agreement” has the meaning given to it in Clause 13.6; 

“Surviving Provisions” means Clauses 1, 10-12, 14-22. 

“Dispute” means any dispute, controversy or claim of any kind arising out of or under or in connection with this Agreement and/or any
transactions hereunder, including, without limitation: (i) any dispute in relation to the existence, interpretation, validity, enforceability or termination of this Agreement, and (ii) any dispute relating to any non-contractual obligations arising out of or in connection with this Agreement; 
 “Litigation” has the
meaning given to it in Clause 7.1.5; 
 “GPB Repayment Amount” means an amount equal to the amount of indebtedness (or any part thereof)
owed by Seller 1 to Bank GPB (JSC), to be agreed by Seller 1 and Bank GPB (JSC), provided that repayment of such amount to Bank GPB (JSC) as provided for by this Agreement shall be a ground for the termination of the Company 2 Mortgage under the
relevant agreement with Bank GPB (JSC); 
 “VTB Repayment Amount” means an amount equal to the amount of indebtedness (or any part thereof)
owed by Seller 1, ChMK PJSC, Yuzhny Kuzbass PJSC and Mechel Trading AG to VTB Bank Group, to be agreed by Seller 1 and VTB Bank; 
 “Material
Assets” means a Company’s Assets that are material for its business as conducted as at the date of this Agreement and/or whose book value exceeds thirty million rubles (RUB 30,000,000); 

“Purchaser’s Account” means the following bank account opened under the name of the Purchaser with Bank GPB (JSC): 

 

	 	(A)	 Account number: 40702810200000015304 

 

	 	(B)	 Bank: Gazprombank (JSC) 

 

	 	(C)	 Correspondent account: 30101810200000000823 

 

	 	(D)	 BIC: 044525823 

  

	 	(E)	 taxpayer’s identification number (INN)/tax registration reason code (KPP): 7744001497/997950001;

 “Seller 1 Account” means the following bank account opened under the name of Seller 1 with Joint-Stock Company
Coalmetbank: 
  

	 	(A)	 Account number: 40702810200000000664; 

  
 58 

	 	(B)	 Bank: Coalmetbank, Chelyabinsk; 

 

	 	(C)	 Correspondent account: 30101810275010000787 with Chelyabinsk Department; 

 

	 	(D)	 BIC: 047501787; 

  

	 	(E)	 taxpayer’s identification number (INN)/tax registration reason code (KPP): 4214005204/997950001;

 “Seller 2 Account” means the following bank account opened under the name of Seller 2 with Joint-Stock Company
Coalmetbank: 
  

	 	(A)	 Account number: 40702810100000000395; 

 

	 	(B)	 Bank: Coalmetbank, Chelyabinsk; 

 

	 	(C)	 Correspondent account: 30101810275010000787; 

 

	 	(D)	 BIC: 047501787; 

  

	 	(E)	 taxpayer’s identification number (INN)/tax registration reason code (KPP): 4214005204/997950001;

 “Escrow Account” means each of the special accounts opened by the Escrow Agent in accordance with Article 860.7 of the
Russian Civil Code under the relevant Escrow Agreement (and all such accounts together, the “Escrow Accounts”); 
 “Seller 1 Title
Business Warranties” means the Seller 1 Business Warranties listed in section 2 of Part B (other than warranties listed in paragraph 2.6 of Part B and, for the avoidance of doubt, those warranties that are the Seller 2 Business Warranties)
(Business Warranties) of Schedule 2 (Warranties) hereto; 
 “Seller 2 Title Business Warranties” means the Seller 2 Business Warranties
listed in section 2 of Part B (other than warranties listed in paragraphs 2.4 and 2.5 of Part B and, for the avoidance of doubt, those warranties that are the Seller 1 Business Warranties) (Business Warranties) of Schedule 2 (Warranties) hereto;

 “Trademarks” means the following trademarks: 
  

	 	(A)	 a verbal trademark and service mark under Certificate No. 285626 issued on the basis of application
No. 2004724455 with the period of priority as of 25 October 2004; 

  

	 	(B)	 a verbal trademark and service mark under Certificate No. 285627 issued on the basis of application
No. 2004724456 with the period of priority as of 25 October 2004; 

  

	 	(C)	 a visual colour trademark and service mark under Certificate No. 285609 issued on the basis of application
No. 2004723475 with the period of priority as of 14 October 2004; 

  
 59 

	 	(D)	 a visual monochrome trademark and service mark under Certificate No. 285610 issued on the basis of
application No. 2004723476 with the period of priority as of 14 October 2004; 

  

	 	(E)	 a visual grey and monochrome trademark and service mark under Certificate No. 285611 issued on the basis
of application No. 2004723477 with the period of priority as of 14 October 2004; 

 “Third Party Claim” has the
meaning given to it in Clause 8.3.1; 
 “Notice” has the meaning given to it in Clause 19.1; 

“Participation Interest Purchase Price” has the meaning given to it in Clause 3.1.1; 

“Participation Interest 1 Purchase Price” has the meaning given to it in Clause 3.1.1(A); 

“Participation Interest 2 Purchase Price” has the meaning given to it in Clause 3.1.1(B); 

“Participation Interest 3 Purchase Price” has the meaning given to it in Clause 3.1.1(C); 

“Net Indemnified Amount” has the meaning given to it in Clause 7.1.7(B); 

“Escrow Agent” means Bank GPB (JSC). 

Part 2 Interpretation 
  

	1.2	 In this Agreement, unless otherwise stated: 

 

	 	(A)	 reference to any provision of the Applicable Law is to such provision as amended or supplemented from time to
time; 

  

	 	(B)	 reference to a document (including this Agreement) or a provision of a document is to that document or
provision as varied, supplemented, restated, replaced or novated from time to time (in relation to any document other than this Agreement, unless it is so varied, supplemented, restated, replaced or novated in violation of this Agreement);

  

	 	(C)	 reference to a “person” includes an individual, corporation, partnership, limited partnership,
limited liability partnership, limited liability company, commercial entity, any other form of business, union, association, or any other legal entity, or governmental authority, whether incorporated or unincorporated, including their respective
successors, transferees and assignees; 

  

	 	(D)	 references to Clauses, paragraphs, Preamble, Schedules or Forms are, unless the context expressly requires
otherwise, references to clauses of, paragraphs of, preamble of, schedules to and forms to this Agreement; 

  

	 	(E)	 references to the word “include”, “including”, “in
particular” or any similar term are not to be construed as implying any limitation on general words that precede such words or terms; 

  
 60 

	 	(F)	 reference to a document being “in the agreed form” or similar is to that document in the form
approved by, and for identification purposes signed and initialled on behalf of, each of the Parties to the Transaction; 

  

	 	(G)	 words importing one gender shall be treated as importing any gender, words importing the singular shall be
treated as importing the plural and vice versa; 

  

	 	(H)	 references to “writing” or “written” or similar expressions do not include
communications delivered by fax or, unless this Agreement expressly provides otherwise, email; 

  

	 	(I)	 any reference to a “day” shall be interpreted as a reference to a calendar day, unless this
Agreement expressly refers to a Business Day; 

  

	 	(J)	 any reference to a “month” or “year” shall be interpreted as a reference to a
calendar month or calendar year, accordingly; 

  

	 	(K)	 any reference to more than one Clauses with the first Clause and the last Clause in a hyphenated form shall
mean that both such Clauses are inclusive; 

  

	 	(L)	 if there is a controversy between an amount or term described in numbers and in words, references to such
amount or term as described in words shall prevail. 

  

	 	(M)	 Paragraph, Clause and Schedule headings in this Agreement are for ease of reference only and are to be ignored
when interpreting this Agreement. 

  

	 	(N)	 Schedules constitute an integral part hereof, and any reference to this Agreement includes Schedules hereto.

  
 61 

 Schedule 2    Warranties 

Part 1 General Warranties 
  

	1.	 Party and Powers and Authorities 

 

	1.1	 The Party is an existing company duly incorporated and registered under the laws of the Russian Federation
which lawfully conducts its business in accordance with the laws of the Russian Federation. 

  

	1.2	 The Party has all requisite power and authorities to execute and deliver and perform its obligations under the
Transaction Documents. 

  

	1.3	 The Party has obtained all consents, authorizations and approvals of any third parties, its management bodies
and the Governmental Authorities (in particular, Seller 1 and Seller 2 obtained waivers of pre-emption rights from other participants of Company 1, Company 2 and Company 3, and VTB Bank’s and Bank GPB
(JSC)’s respective consents to the execution of this Agreement) as required for the execution and performance by it of the Transaction Documents and any transactions and other actions contemplated thereby, in accordance with the Applicable Law
and its constituent, charter, binding internal documents, corporate agreements and other contracts of similar nature and other agreements to which it is a party, save for consents from creditors or counterparties of the Sellers or any of the Mechel
Group companies as specified in the Seller 1 Disclosure Letter and/or the Seller 2 Disclosure Letter. 

  

	1.4	 The Party is not involved in any Proceedings that may result in a judicial, administrative or another
restriction to execute and/or perform the Transaction Documents and/or any transactions and actions contemplated thereby, in full or in part, or affect the Party’s ability to perform its obligations under the Transaction Documents.

  

	1.5	 The Party is not in the process of, and no resolution or order was made or issued by its management bodies, a
court of any jurisdiction or any Governmental Authority in relation to, and there are no legitimate grounds for the commencement of, its liquidation or reorganization. 

 

	1.6	 No bankruptcy application has been filed, or any other bankruptcy proceeding has been commenced in accordance
with the Applicable Law relating to insolvency (bankruptcy), in relation to the Party. 

  

	2.	 Transaction Documents 

 

	2.1	 The provisions of this Agreement and any other Transaction Documents to which the Party is a party constitute,
subject to their execution by all relevant parties, legal, valid, binding and enforceable obligations of the Party in accordance with their respective terms. 

  

	2.2	 The execution and performance by the Party of the Transaction Documents and any transactions and actions
contemplated thereby: 

  

	2.2.1	 do not result in a conflict with or breach of: 

 

	 	(A)	 any laws and regulations of the Russian Federation, any administrative enactment or judgment (ruling, order) of
a court or any other Governmental Authorities that are applicable to the Party; 

  

	 	(B)	 its constituent, charter, binding internal documents, corporate agreements or any other similar agreements to
which it is a party; 

  

	 	(C)	 any agreement, undertaking or contract to which it is a party; 

 

	 	(D)	 any resolutions of its management bodies or other documents or agreements that are binding on it;

  

	2.2.2	 will not give rise to a third party right to amend or terminate any agreement to which it is a party; and

  

	2.2.3	 will not result in an early termination of any of the above or the occurrence of any adverse consequences
thereunder, 

 which, in each case, will prevent the Party from performing, or materially affect the Party’s ability
to perform, its obligations under the Transaction Documents. 
  

	2.3	 The Party was provided with an opportunity to: 

 

	 	(A)	 read the Transaction Documents and it understands their meaning; and 

  
 62 

	 	(B)	 obtain and rely on an independent legal advice on the consequences of execution of the Transaction Documents or
waive its right to obtain such legal advice. 

  

	2.4	 Seller 1 and Bank GPB (JSC) have entered into a binding termination agreement in relation to SHA 1 and SHA 2,
in the form of the finalized draft termination agreement as set out in the Seller 1 Disclosure Letter, an executed copy of which was delivered to the Purchaser on the date hereof. 

 

	2.5	 Seller 2 and Bank GPB (JSC) have entered into a binding termination agreement in relation to SHA 3, in the form
of the finalized draft termination agreement as set out in the Seller 2 Disclosure Letter, an executed copy of which was delivered to the Purchaser on the date hereof. 

 

	2.6	 Seller 1 and Bank GPB (JSC) have entered into binding termination agreement in relation to the pledge of a
portion of Participation Interest 1 comprising one point ninety nine per cent. (1.99%) of the charter capital of Company 1 and a portion of Participation Interest 2 comprising one point ninety nine per cent. (1.99%) of the charter capital of Company
2, in the form of the finalized draft termination agreements as set out in the Seller 1 Disclosure Letter, executed copies of which were delivered to the Purchaser on the date hereof. 

 

	2.7	 Seller 2 and Bank GPB (JSC) have entered into a binding termination agreement in relation to the pledge of a
portion of Participation Interest 3 comprising one point ninety nine per cent. (1.99%) of the charter capital of Company 3, in the form of the finalized draft termination agreement as set out in the Seller 2 Disclosure Letter, an executed copy of
which was delivered to the Purchaser on the date hereof. 

  

	2.8	 Bank GPB (JSC) and Seller 1 have entered into a binding agreement pursuant to which the parties agree not to
execute the New SPA 1 and the New SPA 2, in the form of the finalized draft agreements as set out in the Seller 1 Disclosure Letter, executed copies of which were delivered to the Purchaser on the date hereof. 

 

	2.9	 Bank GPB (JSC) and Seller 2 have entered into a binding agreement pursuant to which the parties agree not to
execute the New SPA 3, in the form of the finalized draft agreement as set out in the Seller 2 Disclosure Letter, an executed copy of which was delivered to the Purchaser on the date hereof. 

 

	2.10	 Seller 1 as purchaser and VEB as seller have entered into a notarized participation interest sale and purchase
agreement in relation to the sale of a participation interest with the par value of fifty thousand one hundred rubles (RUB 50,100) comprising zero point zero zero zero nine seven nine seven three two seven per cent. (0.0009797327%) of the charter
capital of Company 1, a copy of which is set out in the Seller 1 Disclosure Letter. 

  

	2.11	 An irrevocable offer to execute a participation interest sale and purchase agreement in relation to the sale of
a participation interest with the par value of fifty thousand one hundred rubles (RUB 50,100) comprising zero point zero zero zero nine seven nine seven three two seven per cent. (0.0009797327%) of the charter capital of Company 1, as delivered by
Seller 1 as seller to the Purchaser as purchaser pursuant to the call option agreement in relation to a participation interest in the charter capital of Elgaugol Limited Liability Company dated 9 April 2020, constitutes a legal, valid and
binding obligation of Seller 1. 

 Part 2 Business Warranties 

Seller 1 shall give the Seller 1 Business Warranties solely in relation to Company 1 and Company 2 and in relation to Participation Interest 1 and
Participation Interest 2, and Seller 2 shall give the Seller 2 Business Warranties solely in relation to Company 3 and Participation Interest 3. 
 Unless
otherwise expressly follows from the wording of the Seller 1 Business Warranties and the Seller 2 Business Warranties, references to a “Company”, “Participation Interest” and “Seller” in the Seller 1 Business Warranties
and the Seller 2 Business Warranties shall be interpreted as references to: (1) in relation to the Seller 1 Business Warranties (other than the Seller 1 Business Warranties in paragraphs 5, 6 and 16.5 below), each of Company 1 and Company 2,
each of Participation Interest 1 and Participation Interest 2, and Seller 1, respectively; and (2) in relation to the Seller 2 Business Warranties, Company 3, Participation Interest 3 and Seller 2, respectively. 

The Warranties in paragraphs 2.4 and 2.5 below shall be given solely by Seller 1 in relation to Participation Interest 1 and Participation Interest 2. 

  
 63 

 The Warranties in paragraph 2.6 below shall be given solely by Seller 2 in relation to Participation
Interest 3. 
 The Warranties in paragraphs 6 and 16.5 below constitute the Seller 1 Business Warranties and shall be given solely by Seller 1 in relation
to Company 1. 
 The Warranties in paragraph 5 below constitute the Seller 1 Business Warranties and shall be given solely by Seller 1 in relation to
Company 2. 
  

	1.	 INFORMATION 

For the purpose of this Schedule, a “Material Change in Circumstances” means a change in circumstances that has occurred at any time from the
date of disclosure of information to the Purchase in such manner as provided for by this Agreement (or, where such information was updated, the date of the latest update) to the date of this Agreement and that: 

 

	(A)	 had the Purchaser known of it, would have resulted in the Purchaser electing not to enter into this Agreement
or enter into this Agreement on materially different terms; 

  

	(B)	 results or is likely to result in a material change in the Company’s existing economic condition,
including: any loss of or Encumbrance over more than ten per cent. (10%) of the Company’s assets; a suspension of the Company’s operations for more than ninety (90) whole days; an imposition of taxes (including fines and interest) or
administrative fines exceeding five per cent. (5%) of the book value of the Company’s assets; an early termination of contracts with the Company’s customers / suppliers accounting for more than ten per cent. (10%) of the Company’s
sales/purchases; termination or material amendment (i.e. more than twenty per cent. (20%) in price and/or term) of any agreements between the Company and its service providers who provide services subject to licensing; restriction or prevention
(other than due to weather) of transportation of the Company’s products or any materials or components required by the Company; a reasonable claim / demand against the Company for the amount exceeding five per cent. (5%) of the book value of
the Company’s assets; institution of the supervision proceeding in relation to the Company; termination / revocation of the Company’s coal production licence; 

 

	(C)	 might materially affect the Seller’s performance of its obligations under this Agreement.

  

	1.2	 All documents and information provided to the Purchaser and its consultants, advisers or representatives by or
on behalf of the Seller in connection with this Agreement by way of their having access to a Data Room as disclosed to the Purchaser as part of the Seller 1 Disclosure Letter and the Seller 2 Disclosure Letter, and information specified by the
Seller in this Agreement are true, accurate and complete and not misleading in all material respects as at the date such documents and information were actually provided to the Purchaser. 

 

	1.3	 No Material Change in Circumstances has occurred from the date of provision of information specified in
paragraph 1.2 (or, where such information was updated, the date of the latest update) to the date of this Agreement. 

  

	1.4	 Information specified in paragraph 1.2 includes all information that is materially relevant to the assessment
of the financial position, assets, liabilities and operations of the Company (without taking into account any facts or circumstances that are beyond the Seller’s control or have occurred after the date of provision of such information) and
information on all events known to the Seller that might have a material adverse effect on such facts. 

  

	1.5	 In giving to the Purchaser any information in writing prior to the date of this Agreement, the Seller has not
withheld or omitted to give to the Purchaser any information on facts, events or circumstances of which the Seller was aware and which the Seller, acting with such diligence as is required from it by the usual business practice and the provisions of
this Agreement, ought to disclose to the Purchaser, or any information that is or was available to the Seller (at the time of its provision and without taking into account any facts or circumstances that are beyond the Seller’s control or have
occurred after the date of provision of such information) and might have a material adverse effect on the determination of the Company’s value, and which, had the Purchaser, acting reasonably and in good faith, known of it, would have resulted
in the Purchaser electing not to enter into this Agreement on its terms. The Company has no outstanding obligations or liabilities in connection with the distribution of any profit or assets to the Seller. 

  
 64 

	2.	 PARTICIPATION INTERESTS 

 

	2.1	 The Seller has validly acquired its title to the Participation Interest as a result of lawful and bona fide
transactions none of which may be terminated, challenged or held invalid or void, and no provision of the Applicable Law has been violated in the course of or in connection with any such transaction. 

 

	2.2	 The Seller has duly obtained all necessary consents to the acquisition of the Participation Interest (including
the Seller’s corporate approvals) as required by the laws and regulations of the Russian Federation and the provisions of the constituent documents of the Seller and the Company. 

 

	2.3	 The Seller is the sole legal owner of the Participation Interest. The Seller has the powers and authorities to
transfer its title to the Participation Interest to the Purchaser free and clear of any Encumbrances, other than the Permitted Encumbrances. 

  

	2.4	 The par value of Participation Interest 1 is equal to two billion six hundred seven million nine hundred six
thousand eighty three rubles and seventy six kopecks (RUB 2,607,906,083.76), comprising fifty point nine nine nine zero two zero two six seven three per cent. (50.9990202673%) of the charter capital of Company 1. 

 

	2.5	 The par value of Participation Interest 2 is equal to thirty three billion four hundred fifty million three
hundred ninety thousand rubles (RUB 33,450,390,000), comprising fifty one per cent. (51%) of the charter capital of Company 2. 

  

	2.6	 The par value of Participation Interest 3 is equal to one hundred and two thousand rubles (RUB 102,000),
comprising fifty one per cent. (51%) of the charter capital of Company 3. 

  

	2.7	 The Participation Interest is fully paid up. 

 

	2.8	 The Participation Interest is not subject to any Encumbrances, other than the Permitted Encumbrances, or any
seizure or third party claim, and there is no agreement, contract or undertaking to create, or any other lawful grounds for, any Encumbrance over the Participation Interest (in full or in part), and neither the Seller nor the Company has received
any claim and/or demand asserting a third party’s interest in any such Encumbrance. 

  

	2.9	 There are no agreements, transactions or the Company’s corporate resolutions that provide for a change in
the amount of the charter capital of the Company (other than those fully performed prior to the date of this Agreement and registered in the USRLE). 

  

	2.10	 The Seller is not aware of any intention by a third party to challenge the transfer of title to the
Participation Interest from the Seller to the Purchaser under this Agreement. 

  

	2.11	 The Seller is acting for its own account and is the sole legal owner of any consideration to be paid by the
Purchaser in connection with the Transaction. The Seller is not a commissioner, agent, trustee or another intermediate acting on behalf and/or in the interests of any third party. 

 

	2.12	 There are no transactions or any other grounds for the transfer of all or some of the Participation Interest by
the Seller to any person or that give or may give rise to the right of any person to claim (including in connection with any right to acquire, acquisition, disposal or any right to dispose of all or some of the Participation Interest) any
compensation or other payments under the laws and regulations of any jurisdiction. There are no third party claims in relation to any rights as specified in this paragraph, and neither the Company nor the Seller has agreed to grant any such rights.

  

	2.13	 There are no circumstances that result or may result in the challenging by any person or any Governmental
Authorities of the Seller’s title to the Participation Interest (in full or in part) or otherwise affect the Seller’s title to the Participation Interest (in full or in part). 

 

	2.14	 There are no pending litigations and/or outstanding claims or demands to which the Seller, the Company or any
person within the Mechel Group is a party in relation to the Participation Interest (in full or in part), and there are no any other litigations/claims or demands or any lawful grounds for the commencement or bringing of such litigations and/or
claims or demands. 

  

	2.15	 There are no lawful grounds for a claim by any person (including the Seller) against the Company for money
and/or assets in connection with the payment for the Participation Interest upon the incorporation or in connection with any increase of the charter capital of the Company. 

  
 65 

	2.16	 There are no lawful grounds for a claim by any person (including the Seller) against the Company for money
and/or assets in connection with the payment for the Participation Interest upon the incorporation or in connection with any increase of the charter capital of the Company; 

 

	2.17	 The Participation Interest is not subject to any corporate, voting or participants’ or similar agreements,
and there are no similar undertakings in any other form, other than the SHAs. 

  

	2.18	 There are no restrictions restricting or limiting the distribution of profits by any Company, other than those
provided for by the Applicable Law. 

  

	2.19	 The Seller has not assigned or transferred (whether on the basis of a power of attorney, pursuant to a contract
or otherwise) to any person any of its rights as participant in the Company in relation to the Participation Interest, including its right to vote at the general participants’ meetings of the Company. 

 

	3.	 COMPANY 

  

	3.1	 The Company is a legal entity duly incorporated as a limited liability company and validly existing under the
Applicable Law in all material aspects. The charter capital of the Company is fully paid up. There was no violation of the Applicable Law in connection with the incorporation of the Company and payment and any increase of its charter capital. The
Company is duly qualified and licensed to conduct its business as conducted by it as at the date of this Agreement. The Company’s business and its actions are carried out by it in all respects in accordance with the Applicable Law and its
constituent and internal documents, and there are no violations that might result in the Company’s bankruptcy or liquidation or the suspension of its business for more than ninety (90) days. 

 

	3.2	 The Company is not in the process of reorganization, liquidation or bankruptcy (insolvency), and does not meet
any insolvency or bankruptcy criteria, and there are no grounds for the forced liquidation of the Company. 

  

	3.3	 There are no grounds for the commencement of any insolvency or bankruptcy proceedings in relation to the
Company. 

  

	3.4	 None of the following measures has been taken by or in relation to the Company (and the Seller does not have
reasonable grounds to believe that any such measures may be taken, by reference to the facts and circumstances arising prior to the date of this Agreement): 

  

	 	(A)	 an action is taken to carry out the liquidation or reorganization of the Company; 

 

	 	(B)	 an action is taken to declare the Company insolvent (bankrupt) (including filing a claim for the bankruptcy of
the Company, or receipt by a court of an application for the declaration of the Company insolvent (bankrupt), and/or commencement of any bankruptcy proceedings in relation to the Company); 

 

	 	(C)	 a resolution is passed by the Company in relation to its voluntary liquidation or bankruptcy;

  

	 	(D)	 a court decision is issued in relation to the liquidation or bankruptcy of the Company; 

 

	 	(E)	 supervision, financial recovery, receivership or bankruptcy management proceedings are instituted in relation
to the Company; 

  

	 	(F)	 a bankruptcy receiver (including a temporary receiver, an administrative receiver, an external receiver or a
bankruptcy manager) is appointed in relation to the Company. 

  

	3.5	 The Company has not entered into any settlement or compromise agreement with its creditors and is not involved
in any negotiations in relation to such agreement; the Company has not declared a moratorium on its debts and is not unable to pay its debt as they fall due. 

  

	3.6	 The Company has not issued any powers of attorney which remain outstanding as at the date of this Agreement,
other than the powers of attorney listed in the Seller 1 Disclosure Letter and/or the Seller 2 Disclosure Letter. 

  

	3.7	 All corporate resolutions passed by the Company’s management bodies are valid and lawful; there are no
resolutions passed in violation of the Applicable Law, including a notice of general participants’ meeting of the Company, that may be held invalid in full or in part. 

  
 66 

	3.8	 The Seller has delivered to the Purchaser and its consultants all resolutions (minutes) of the general
participants’ meetings of the Company and meetings of the board of directors of the Company for the past three (3) years. 

  

	3.9	 The value of the Company’s net assets is positive. The value of the Company’s net assets is not less
than the amount of the Company’s charter capital as at the latest reporting date. 

  

	3.10	 None of the participants in the Company has submitted an application for withdrawal from the Company; there are
no other grounds for the repurchase by the Company of participation interests in its own capital; the Company does not have any outstanding obligations to make any payments in connection with the repurchase of participation interests in its own
capital. 

  

	3.11	 The Company is not a natural monopoly and does not have a dominant market position in any market, whether in
the Russian Federation or abroad. 

  

	3.12	 Neither the Company nor any of its assets is subject to the Federal Law No.
57-FZ “On the Procedure for Making Foreign Investments in Companies of Strategic Importance for State Security and Defence” dated 29 April 2008. 

 

	3.13	 The Company is not a participant of any amalgamations, unions or other associations of legal entities, other
than Self-Regulating Organization “Non-Commercial Partnership Yakutia Union of Constructors”. 

  

	3.14	 Neither the Seller, nor the Company or any of their employees or intermediaries has made, offered or allowed
any payment of cash or other valuables, directly or indirectly, to any person in order to influence the actions or decisions of such persons with a view obtain an illegal advantage or for an unlawful purpose in connection with the Company’s
business. The Seller and the Company do not perform any actions that qualify under the Applicable Law as bribery or corrupt business practices or any actions in violation of the requirements of the Applicable Law and international laws and
regulations that relate to the prevention or combating of money laundering. 

  

	4.	 ENVIRONMENTAL 

 

	4.1	 The Company has been in compliance with environmental laws and regulations of the Russian Federation, where
such failure to so comply may result in an expense (including as a result of any sanctions being applied to the Company). 

  

	4.2	 The Company has obtained all licences as required by the Company in its business in relation to the treatment
of hazardous wastes, including licences for their collection, transportation, processing, treatment, decontamination or disposal, felling tickets (or any other documents duly authorizing the Company to carry out its felling operations) and
earthworks permits. 

  

	4.3	 The Company makes all payments (including payment of fines and default interest) for an adverse effect on the
environment in full. 

  

	4.4	 The Company has not and may not be held liable for an environmental offence occurring on or before the date of
this Agreement under the environmental laws and regulations (except where such liability was duly discharged or the Company’s respective obligations were duly performed by the Company). 

 

	4.5	 There have been no incidents, within three (3) years prior to the date of this Agreement and as at the
date of this Agreement, resulting in an environmental damage, unless such damage is remedied/compensated for prior to the date of this Agreement. As at the date of this Agreement, the Company’s business and operations are not subject to any
suspension. 

  

	5.	 ULAK – ELGA RAILROAD  

 

	5.1	 The access railroad to the Elga coal field from the Ulak station to the Elga station; designation: railway
construction, length: 317000 m; completeness: 91%; cadastral number: 0:0:0:277 (the “Railroad Construction”), was duly constructed in accordance with the Applicable Law and the design documentation, without any deviations from
applicable construction rules and procedures. 

  

	5.2	 The construction permit and all approvals, certificates of acceptance of railroad into full operation, the full
operation permit for the Railroad Construction and all permits and licences for transportation of cargo and human passengers, have been obtained and are in full force and effect. 

  
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	5.3	 There are no outstanding violations of the rules of operation of the Railroad Construction for the period from
31 March 2011 to the date of this Agreement. The Railroad Construction is safe for transportation of human passengers and cargo; and all applicable statutory safety rules and procedures for transportation of cargo and passengers have been and
are complied with. 

  

	5.4	 The Railroad Construction is maintained in good technical condition, and its yearly cargo transportation
capacity comprises at least 4.2 mln tons. 

  

	5.5	 There are no restrictions and/or limitations on the use of the Railroad Construction; and there are no grounds
to believe that the operation of the Railroad Construction would be restricted in the future on the grounds that occurred prior to the date of this Agreement. 

 

	5.6	 Company 2 is the sole legal owner of the Railroad Construction; the Railroad Construction is not subject to any
dispute or a third party claim, or any seizure, pledge or another Encumbrance. 

  

	5.7	 Company 2 has duly perfected title (ownership and/or lease rights) to the land plots and forest plots
underlying the Railroad Construction and related structures and equipment. It is not required to obtain a title to any other land plots for the due operation of the Railroad Construction. The relevant land plots are of such categories and
designation (permitted use) that it is permitted to construct and install the Railroad Construction and the related structures and equipment thereon. 

  

	5.8	 There are no outstanding violations by Company 2 of any Applicable Law in relation to the operation of the
Railroad Construction which were identified in the course of any audit conducted by the Governmental Authorities. 

  

	6.	 SUBSOIL USE LICENCES 

 

	6.1	 All subsoil use licences as required for the carrying on of the business of Company 1 as it is conducted as at
the date of this Agreement are listed in the Seller 1 Disclosure Letter (the “Subsoil Licences”). There are no outstanding written notices received by Company 1 as holder of the Subsoil Licences from any Governmental Authority
indicating that Company 1’s rights of subsoil use under any of the Subsoil Licences have been or will be terminated, suspended or restricted as a result of application of any sanctions by the competent Governmental Authorities.

  

	6.2	 All mining and land allocation certificates relating to the Subsoil Licences and any other certificates as
required for the carrying on of the business of Company 1 as it is conducted as at the date of this Agreement, have been duly obtained in accordance with the Applicable Law, and Company 1 has been conducting its relevant operations within the
boundaries as specified in such mining and land allocation certificates. 

  

	6.3	 Company 1 has procured the execution of all protocols of the Subsoil Reserve Governmental / Central /
Territorial Committee in relation to coal reserves and all protocols of the Production and Development Governmental / Central / Territorial Committee in relation to the approval of the Technical Design for Coal Reserve Development, as required by
Company 1 to enable it to perform the terms and obligations set out in the Subsoil Licences. 

  

	6.4	 Since the incorporation of Company 1, there have not been and there are no outstanding violations by Company 1
of any terms and conditions of the Subsoil Licences or any statutory provisions relating to subsoil and land use and environmental protection which were identified in the course of any audit conducted by the Governmental Authorities.

  

	7.	 ASSETS 

  

	7.1	 The Company is the sole and absolute owner of assets and properties as required by it for the carrying on its
business as it is conducted as at the date of this Agreement (including its assets with the net book value of over four million rubles (RUB 4,000,000) as listed in the Seller 1 Disclosure Letter and/or the Seller 2 Disclosure Letter) (the
“Assets”). To the best of the Seller’s knowledge, the Assets are not subject to any dispute or third party claims. 

  

	7.2	 The Assets are not subject to any seizure, pledge or any other Encumbrances, other than the Permitted
Encumbrances. 

  

	7.3	 None of the Encumbrances over the Assets has been enforced. 

  
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	7.4	 The Assets owned by the Company have been lawfully acquired and are duly used or kept. 

 

	7.5	 The Company owns or lawfully uses all Assets as required by it for carrying on its business as it is conducted
as at the date of this Agreement. 

  

	7.6	 The Assets owned by the Company have been duly registered and/or recorded and/or other similar formalities have
been duly completed in relation to them (to the extent necessary under the Applicable Law). 

  

	7.7	 The Assets owned by the Company are being used by the Company in accordance with their designation, and the
Company has all necessary permits (including any necessary licences, consent and approvals of the Governmental Authorities and/or lessors) for their use in the Company’s business. 

 

	7.8	 Any and all of the Company’s owned assets and properties whose value exceeds thirty million rubles (RUB
30,000,000) (the “Material Assets”) are, as at the date of this Agreement, insured for their full actual value by a reputable insurer in accordance with the Russian laws and regulations. All insurances in relation to the Material
Assets and any and all mandatory insurance contracts have been executed and are in full force and effect, and all insurance premiums thereunder have been paid when due. There are no outstanding breaches or violations by the Company of the terms and
conditions of any such contracts or applicable laws and regulations, where such breach or violation may entitle the insurer to refuse to pay the insurance proceeds upon the occurrence of an insured event, and, to the best of the Seller’s
knowledge, there are no outstanding violations of any such contracts by the respective insurers. 

  

	7.9	 Each of the Assets as specified in or acquired after the date of the Financial Statements is in the
Company’s possession or under the Company’s control. 

  

	7.10	 The Company does not have any interest, shares (or securities convertible into shares), participatory units or
similar equity securities (instruments) in the charter capitals of other companies. The Company does not have any subsidiaries. 

  

	7.11	 Leased Assets 

 

	7.11.1	 The Company has the legitimate title to use its leased assets (the “Leased Assets”).

  

	7.11.2	 To the best of the Seller’s knowledge, there are no facts or circumstances which (a) will give rise
to the right of any person (including the owner or lessor of such Leased Assets) to claim the return of the Leased Assets, or (b) might result in the restriction or limitation of the Company’s right to hold or use the Leased Assets, or
(c) might result in the termination of the lease agreements by the respective lessors. 

  

	7.12	 Real Properties 

 

	7.12.1	 The Company has in its possession and use, or has all title and other documents evidencing the existing
ownership or lease rights in relation to, the properties (including constructions in progress) as listed in the Seller 1 Disclosure Letter and/or the Seller 2 Disclosure Letter (the “Real Properties”). 

 

	7.12.2	 The Financial Statements specify all the Properties owned by the Company. 

 

	7.12.3	 Other than as disclosed to the Purchaser (in the Seller 1 Disclosure Letter and/or the Seller 2 Disclosure
Letter), the Company is not a party to any binding sale or purchase agreement in relation to a Property or any title thereto pursuant to which the Company or its counterparty thereunder has any outstanding obligations or liabilities.

  

	7.12.4	 The Company has acquired all necessary rights to land and forest plots and buildings and premises as required
for the carrying on of the Company’s business. 

  

	7.12.5	 The Company has duly perfected title (ownership and/or lease rights) to the land plots and forest plots
underlying the Company’s operations and necessary facilities and equipment, and it is not required to obtain a title to any other land plots for the conduct of its business. The relevant land plots are of such categories and designation
(permitted use) that it is permitted to construct and install the relevant facilities and equipment and conduct the Company’s operations thereon. 

  
 69 

	7.13	 Intellectual Property 

For the purpose of this Schedule, the “Intellectual Property” means any and all rights to intellectual property in any part of
the world, including rights in patents, petty patents and utility models, rights in inventions, trade marks and service marks, , whether registered or not, trade or business names and trade dress, domain names, rights in designs, whether registered
or not, semi-conductor topography rights, copyright and moral rights, database rights, rights in know-how (including trade secret, technical and commercial know-how,
technologies, production processes and business processes and methods) and, in each case, other analogous rights of any description whatsoever and all other rights or forms of protection of equivalent or similar nature and applications therefor and
the right to apply for the same. 
  

	7.13.1	 All Intellectual Property of the Company: 

 

	 	(A)	 is adequate and sufficient for the carrying on of the Company’s business as it is conducted as at the date
of this Agreement and the performance by the Company of all its obligations, including under any agreements to which the Company is a party; 

  

	 	(B)	 is in the Company’s sole, actual, absolute and legal ownership, or was obtained by the Company from a
licensor who is entitled to grant such licence, and is not subject to any Encumbrances; and the Seller is not aware of any pending or threatened third party claims in relation to the Intellectual Property; 

 

	 	(C)	 is not subject to any suit or opposition received by the Seller or the Company from any person (including any
employee of the Company) in relation to such Intellectual Property, its validity or any interest therein or any other aspect; 

  

	 	(D)	 is not required to be transferred to, and no licence, sub-licence or
any other right is required to be granted in relation to such Intellectual Property, any third party; and 

  

	 	(E)	 to the extent required by applicable laws and regulations, has been duly registered, or applications for
registration have been duly filed in relation to it. 

  

	7.14	 All registration, licence and similar fees and charges due from the Company has been duly paid by it in
relation to the Intellectual Property. 

  

	8.	 STATEMENTS 

For the purpose of this Agreement, the “Financial Statements” means the RAS financial statements prepared as at 31 March
2020. 
  

	8.1	 The Financial Statements of the Company are true and complete in all material respects. 

 

	8.2	 Since the date of the Financial Statements: 

 

	 	(A)	 there has been no event that might have a material adverse effect on the Company, its assets, financial
position, operations and/or the value of the Participation Interest. For the avoidance of doubt, a fluctuation of currency exchange rates against Russian rubles and any related effects shall not be regarded as an event that might have a material
adverse effect; 

  

	 	(B)	 the Company has carried on its business (including management of its working capital and liquidity) in the
ordinary course; 

  

	 	(C)	 the Company has not acquired or disposed of and has not agreed to acquire or dispose of any material assets
(including any assets whose value is equal to or exceeds thirty million rubles (RUB 30,000,000) individually or five hundred million rubles (RUB 500,000,000) in aggregate), otherwise than in an arm’s length transaction in the ordinary course of
its business; 

  

	 	(D)	 the Company has not declared or made any distributions or repurchased any participation interests in its
charter capital; no debt owed to the Company has been written off in full or in part (otherwise than in accordance with the Russian laws and regulations); 

  

	 	(E)	 the Company has not: 

 

	 	(i)	 changed its charter capital; 

 

	 	(ii)	 made any changes in the accounting methods, policies and principles, unless such change was required by
applicable laws and regulations; 

  
 70 

	 	(iii)	 raised any loans or credits nor has permitted the incurrence of any financial indebtedness;

  

	 	(iv)	 subject to (B) above, entered into any agreement or another transaction where the value of such agreement
or transaction deviates from the market prices by more than twenty per cent. (20%), or where any other terms of such agreement or transaction are materially different from the terms and conditions of similar transactions; 

 

	 	(v)	 provided any loans; 

  

	 	(vi)	 provided ay security / Encumbrances over its assets; 

 

	 	(vii)	 made any amendments in the terms of its employment agreement resulting in an increase of the aggregate annual
fees/salaries payable to the Company’s employees by more than seven per cent. (7%). 

  

	9.	 LICENCES AND INDUSTRIAL SAFETY 

For the purpose of this Schedule, the “Licences” means any and all licences, including the Subsoil Use Licences, consents, permits,
expert approvals, assessments, certificates, resolutions or similar authorisations issued by the governmental or regulatory authorities, institution or services of the Russian Federation, constituent subject of the Russian Federation or local
municipal authorities in the Russian Federation, and ay filings or registrations with such authorities in the Russian Federation. 
  

	9.1	 The Company has obtained all Licences and other permits as required for the carrying on of its business as it
is conducted as at the date of this Agreement. 

  

	9.2	 The Seller 1 Disclosure Letter and/or the Seller 2 Disclosure Letter contain complete and true list of all
Licences and other permits of the Company. All Licences and permits specified in the Seller 1 Disclosure Letter and/or the Seller 2 Disclosure Letter have been validly issued and are in full force and effect, and there are no outstanding violations
of any of their terms that might result in their termination, suspension or revocation. A copy of all such documents as amended have been delivered to the Purchaser. Such copies are complete and true copies of the relevant originals and have
attached to them complete and true copies of all appendices thereto. Other than as disclosed in the Seller 1 Disclosure Letter and/or the Seller 2 Disclosure Letter, there are no other Licences or permits that are required for the carrying on of the
Company’s business as it is conducted as at the date of this Agreement. 

  

	9.3	 The Company has developed, approved and duly implements all local regulations and policies in relation to
industrial safety, including the industrial safety control policies and procedures. 

  

	10.	 ANTITRUST 

  

	10.1	 The Company has obtained all antitrust consents required for the Company’s operations and its
transactions, including any acquisition of assets by the Company. 

  

	10.2	 The Company has filed with the antitrust authorities all notices as required in connection with the
Company’s operations and its transactions, including any acquisition of assets by the Company. 

  

	11.	 CONTRACTS 

  

	11.1	 There are no pending tender offers or similar offers whose aggregate value may exceed one hundred million
rubles (RUB 100,000,000) and which may be converted into a liability as a result of their acceptance or any other actions by a third party. 

  

	11.2	 No default by the Company has occurred or is continuing under any of its other contracts (agreements) to which
it is a party, exceeding ten per cent. (10%) of the book value of the Company’s assets as reflected in its latest accounting statements and/or that is capable to having a material adverse effect on the Company’s ability to perform its
obligations under any other transactions and/or the Company’s operations. To the best of the Seller’s knowledge, there are no grounds for the termination or invalidation of, and the Company has not received any notice of any person’s
intention to terminate, any such contract or another transaction. 

  

	11.3	 Each transaction that constitutes a major transaction or an interested party transaction under the Russian laws
and regulations and that was entered into within one (1) year preceding the date of this Agreement, has been duly approved and authorized by the Company’s management bodies and duly executed by the Company’s authorized representatives
within their authorities. 

  
 71 

	11.4	 Except for any transactions that have been duly performed and discharged, the Company has not entered into any
transaction (whether with a member of the Mechel Group or any third party), where the value of such transaction deviates from the market prices by more than twenty per cent. (20%), or where any other terms of such transaction are materially
different from the terms and conditions of similar transactions. 

  

	11.5	 Information on twenty (20) major existing contracts of the Company (other than the Agreed Contracts) with
the aggregate amount of payments thereunder, in each such case, exceeding one hundred million rubles (RUB 100,000,000), is disclosed in the Seller 1 Disclosure Letter and/or the Seller 2 Disclosure Letter, and a copy of each such contract has been
delivered to the Pruchaser. 

  

	11.6	 Each contract entered into with the Mechel Group within one (1) year preceding the date of this Agreement
has been duly approved by the competent corporate bodies of the relevant member of the Mechel Group in accordance with the Applicable Law and constituent documents of such member of the Mechel Group (subject to all applicable requirements as to the
composition of such corporate bodies and their decision-making procedures), and there has been no violation that would result in any such contract being held invalid. 

 

	11.7	 Any services provided by a member of the Mechel Group to the Company have been provided on the market terms or
the terms and conditions deviating from the market prices by no more than twenty per cent. (20%), on the basis of duly executed contracts. There are no outstanding breaches of any such contracts giving rise to the right of a party thereto to
terminate such contract or claim damages thereunder, including lost profits. 

  

	11.8	 Assets provided by a member of the Mechel Group to the Company have been provided on the market terms or the
terms and conditions deviating from the market prices by no more than twenty per cent. (20%), on the basis of duly executed contracts. Such contracts have been and are being duly performed. There are no outstanding breaches of any such contracts
giving rise to the right of a party thereto to terminate such contract or claim damages thereunder, including lost profits. 

  

	12.	 LOAN CAPITAL 

For the purpose of this Schedule, the “Loan Capital” means any loans, credits, bonds, notes, indentures and other financial
indebtedness under financial instruments, including bank overdrafts, obligations under finance leases and the Company’s guarantees which remain outstanding as at the date of this Agreement. 

 

	12.1	 The total amount of the Loan Capital of the Company does not exceed any borrowing limitations as set out in any
contract or another agreement, document or instrument to which the Company is a party. 

  

	12.2	 The detailed information and true and accurate copies of all agreements in relation to all Loan Capital have
been disclosed by the Sellers in the Seller 1 Disclosure Letter and/or the Seller 2 Disclosure Letter. Except as so disclosed, there are no transactions pursuant to which the Company has any outstanding obligations in relation to the Loan Capital.

  

	12.3	 Neither the Company nor the Sellers have taken any action or omission that might result in the creditors (or
any of them) making a claim for an early payment of all or some of debt under such agreements. 

  

	12.4	 The Company has not created and/or provided or consented to the creation and/or provision of any Encumbrances,
guarantees, indemnities, suretyships or any other security interest in relation to obligations of any member of the Mechel Group, except as disclosed in the Seller 1 Disclosure Letter and/or the Seller 2 Disclosure Letter and other than the Company
3 Permitted Suretyships. 

  

	12.5	 The Company does not have any outstanding securities authorized, issued, placed, avalized and/or endorsed by
the Company, including options, bonds, notes or other securities and derivatives. The Company does not have any obligations or claims in relation to the issuance, placement, transfer, conversion, repurchase or redemption of any securities or
issuance of any participation interests in the Company’s charter capital. 

  
 72 

	12.6	 None of the Mechel Group members has assigned to a person who is not a member of the Mechel Group any claims
against the Company which are valid and outstanding as at the date of this Agreement. 

  

	12.7	 The Company has not provided any guarantees, suretyships or any other undertakings to be liable for any third
party debts, except as disclosed in the Seller 1 Disclosure Letter and/or the Seller 2 Disclosure Letter and other than the Company 3 Permitted Suretyships. 

  

	12.8	 Company 1’s debt under the VEB Facility has been fully repaid. 

 

	12.9	 Loan agreement No. 13-07/04/2020 dated 10 April 2020 between Wuleen Investments Corp as lender and
Company 1 as borrower constitutes a legal, valid and enforceable obligation of Company 1. 

  

	12.10	 All guarantees and suretyships and other Encumbrances (including a pledge or mortgage, other than the Permitted
Encumbrances) issued or created by the Mechel Group companies (excluding any guarantees and suretyships issued by the Companies for the benefit of each other) in relation to the Company’s obligations, as listed in the Seller 1 Disclosure Letter
and/or Seller 2 Disclosure Letter, other than the Permitted Suretyships, have been terminated, and a copy of the termination agreements in relation to such guarantees, suretyships and other Encumbrances (and other documents evidencing their
termination), are contained in the Seller 1 Disclosure Letter and/or Seller 2 Disclosure Letter. There are no guarantees and suretyships or any Encumbrances (including a pledge or mortgage, other than the Permitted Encumbrances) issued or created by
the Mechel Group companies (excluding any guarantees and suretyships issued by the Companies for the benefit of each other) in relation to the Company’s obligations, other than as disclosed in the Seller 1 Disclosure Letter and/or Seller 2
Disclosure Letter as terminated. 

  

	12.11	 All guarantees and suretyships and other Encumbrances (including a pledge or mortgage) issued or created by the
Company in relation to obligations of the Mechel Group companies, as listed in the Seller 1 Disclosure Letter and/or Seller 2 Disclosure Letter, other than the Permitted Encumbrances, have been terminated, and a copy of the termination agreements in
relation to such guarantees, suretyships and Encumbrances (and other documents evidencing such termination), are contained in the Seller 1 Disclosure Letter and/or Seller 2 Disclosure Letter. There are no guarantees and suretyships or any
Encumbrances (including a pledge or mortgage) issued or created by the Company in relation to obligations of the Mechel Group companies, other than as disclosed in the Seller 1 Disclosure Letter and/or Seller 2 Disclosure Letter as terminated.

  

	12.12	 All contracts between the Company on one hand and any of the Mechel Group companies on the other hand, as
listed in the Seller 1 Disclosure Letter and/or Seller 2 Disclosure Letter, other than the Permitted Suretyships, the Sublease Agreement and the Agreed Contracts, have been terminated, and a copy of the termination agreements in relation to such
contracts, are contained in the Seller 1 Disclosure Letter and/or Seller 2 Disclosure Letter. There are no contracts between the Company on one hand and any of the Mechel Group companies on the other hand, other than as disclosed in the Seller 1
Disclosure Letter and/or Seller 2 Disclosure Letter as terminated. 

  

	13.	 LITIGATION PROCEEDINGS AND OTHER PROCEEDINGS; COMPLIANCE 

For the purpose of this Schedule, the term “litigation” means a criminal proceeding initiated against the Senior Employees (as
defined below) in connection with their activities as the Company’s officers, and any litigation, arbitration or administrative proceedings, and the term “threatened” means that a demand has been made against the Company or a
written notice was received by the Company in relation to the commencement of any litigation or any pending litigation. 
  

	13.1	 Other than as disclosed in the Seller 1 Disclosure Letter and/or Seller 2 Disclosure Letter, the Company is not
engaged in any litigation and/or disputes whose value exceeds fifty million rubles (RUB 50,000,000). To the best of the Seller’s knowledge, there are no facts or circumstances that may result in the commencement of any litigation and/or dispute
involving the Company. No interim relief has been granted in relation to the Company, the Participation Interests or any of the Company’s assets in connection with any litigation. 

  
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	13.2	 The Seller is not aware of any litigation (or any threatened litigation) involving a person for whose actions
or default the Company is or may be liable in accordance with any undertakings given by the Company or under the Applicable Law. 

  

	13.3	 The Seller is not aware of any effective outstanding judgments, awards, orders, decrees or acts of any
Governmental Authorities of any jurisdiction against the Company or a person for whose actions or default the Company may be liable in accordance with any undertakings given by the Company or under the Applicable Law. 

 

	13.4	 To the best of the Seller’s knowledge, the Company is not subject to any ongoing investigation by any
Governmental Authorities. 

  

	13.5	 Within the last three (3) years preceding the date of this Agreement, no violation by the Company of the
Applicable Law (other than any insignificant violations resulting in the imposition of a fine and/or a liability for losses in the aggregate amount not exceeding two million rubles (RUB 2,000,000) in relation to all such violations identified in the
course of the relevant audit) has been identified in the course of an audit conducted by any Governmental Authorities, other than any such violations which were remedied by the Company in accordance with the Applicable Law. 

 

	13.6	 There are no: (a) outstanding personal injury cases involving the Company, or (b) outstanding liabilities
of the Company in connection with any personal injury claims (including by the Company’s existing or former employees). 

  

	14.	 TAXATION 

  

	14.1	 The Company is and has at all times been tax resident in the Russian Federation only and is not subject to
taxation in any jurisdiction, other than the Russian Federation. 

  

	14.2	 All tax returns, computations and documents which have been required to be made or given by the Company under
the laws of the Russian Federation in relation to each of the three (3) complete calendar years preceding the date of this Agreement and the last incomplete calendar year preceding the date of this Agreement, contain in all material respects
true information and have been duly prepared within the requisite periods. As at the date of this Agreement, the Seller is not aware of any tax documents of the Company which give or might give rise to any tax dispute with the tax authorities.

  

	14.3	 All taxes and mandatory charges (including charges to be paid to the Pension Fund of the Russian Federation,
the Social Security Fund of the Russian Federation, and mandatory medical insurance funds, - the “Mandatory Charges”) which the Company has become liable to pay and which have fallen due for payment, for the period of three
(3) complete calendar years preceding the date of this Agreement and the last incomplete calendar year preceding the date of this Agreement (inclusive), as calculated on the basis of tax returns, computations and documents submitted by the
Company with the tax authorities and non-budgetary funds, have been paid in full. 

  

	14.4	 In relation to three (3) complete calendar years preceding the date of this Agreement and the last
incomplete calendar year preceding the date of this Agreement (inclusive), the Company has, in all material respects, duly withheld and reflected in its RAS accounting statements all sums required to be withheld by the Company on account of taxation
and Mandatory Charges. 

  

	14.5	 The RAS accounting statements make full provision or reserve for, and show the Company’s liabilities in
respect of, all taxes and Mandatory Charges assessed or liable to be assessed on the Company or for which the Company is accountable in accordance with the applicable laws and regulations, in all material respects. Proper provision has been made and
shown in the RAS accounting statements for deferred tax assets and liabilities in accordance with the RAS and the Company’s liabilities in respect of Mandatory Charges. 

 

	14.6	 The Company is not liable to pay or provide any indemnification in respect of any taxes or Mandatory Charges as
a result of failure by any other person to pay any such tax on income, profits, capital gains or transactions arising or occurring prior to the date of this Agreement (inclusive), other than its liabilities expressly provided for by the Tax Code of
the Russian Federation. 

  

	14.7	 During three (3) complete calendar years preceding the date of this Agreement and the last incomplete
calendar year preceding the date of this Agreement (inclusive), the Company has complied in all material respects with all mandatory requirements, orders, regulations, 

  
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instructions or terms and conditions of the applicable tax laws in relation to VAT. As at the date of this Agreement, the Company is not aware of any liabilities by the Company to pay an
additional amount of VAT (or any fines) in respect of the periods for which the Company has already delivered its VAT returns to the tax authorities. 

  

	14.8	 To the best of the Seller’s knowledge, the Company is not involved in any dispute, administrative or
arbitration proceedings with tax authorities. 

  

	14.9	 The Company does not have any outstanding fines, interest or tax arrears that have been accrued or charged
under the tax laws and regulations for three (3) complete calendar years preceding the date of this Agreement and the last incomplete year preceding the date of this Agreement. 

 

	15.	 EMPLOYEES  

 

	15.1	 For the purpose of this Agreement, the term “Senior Employees” means: (i) members of the
board of directors of the Company; (ii) the person performing the functions of the sole executive budy of the Company; (iii) the chief accountant of the Company, (iv) deputy general directors of the Company, including its technical
director, (v) the chief geologist of the Company, (vi) the chief surveyor of the Company, and (vii) members of the audit committee of the Company, as at the date of this Agreement. The list of Senior Employees is set out in the Seller
1 Disclosure Letter and/or the Seller 2 Disclosure Letter. 

  

	15.2	 The Senior Employees and other employees of the Company are entitled to their remuneration on the same ground
that existed as at the date of the Financial Statements. The Company is not obliged to increase or agree to increase the aggregate amount of the annual remunerations payable to the Senior Employees and other employees of the Company, or the rate of
remuneration of its directors, officers or employees who are entitled to an annual increase in such remuneration rates, by an amount that is higher than the national ruble inflation rate in any complete year. 

 

	15.3	 The Company is not obliged to pay to the Senior Employees and other employees of the Company any remuneration
or compensations upon termination of their employment or similar relations with the Company, other than any remunerations or compensations which are expressly provided for by the laws of the Russian Federation (and not an employment or similar
contract, an internal document of the Company or otherwise). 

  

	15.4	 There are no agreements, collective bargaining agreements or agreements with works council or any staff
association or other body representing employees, other than as disclosed in the Seller 1 Disclosure Letter and/or the Seller 2 Disclosure Letter. No trade union was created in the Company, other than as disclosed in the Seller 1 Disclosure Letter
and/or the Seller 2 Disclosure Letter. 

  

	15.5	 The Company does not maintain any profit sharing incentive arrangements for any of the Senior Employees or
other employees. 

  

	15.6	 The Company is not involved in any individual or collective trade disputes, including those commenced with an
intention to oblige the Company to have quarterly wage indexation. 

  

	15.7	 No strike is or has been arranged and/or conducted by the Company’s employees, and the Company is not
aware of an intention by the Company’s employees to conduct a strike and/or commence any industrial dispute. 

  

	15.8	 The Company is not in arrears in respect of payment of wages and salaries to its employees.

  

	15.9	 The Company is not a participant to any social plans (including pension plans), other than mandatory plans as
provided for by the laws of the Russian Federation. 

  

	15.10	 The Company has developed and duly approved its internal policies and procedures governing workplace management
and off-work hours of the Company’s employees, including the regulations on industrial safety management system, internal regulations in relation to briefing and training of employees, and all necessary
structural divisions, including occupational, industrial and environmental safety service, have been established within the Company. The Company regularly conducts the assessment of workplace and employment conditions and procures regular medical check-ups for its employees in accordance with the requirements of applicable laws and regulations. 

  
 75 

	16.	 RECEIVABLES AND PAYABLES 

 

	16.1	 The Company does not have any accounts payable under loans and/or credits owed to the Mechel Group companies or
any other persons, other than the Permitted Payables. 

  

	16.2	 The Company does not have any off-balance sheet liabilities, including
any such liabilities incurred for the benefit of the Mechel Group companies or third parties, or any bill guarantees or indorsements with recourse, suretyships or guarantees exceeding in aggregate one hundred million rubles (RUB 100,000,000) for all
Companies, other than the Permitted Off-Balance Sheet Liabilities. 

  

	16.3	 The Company does not have any indebtedness, other than as specified in paragraphs 16.1 and 16.2, to the Mechel
Group companies or any accounts payables, other than as specified in paragraphs 16.1 and 16.2, or any provisions for carry-over vacations, exceeding in aggregate one hundred million rubles (RUB 100,000,000) all Companies, other than the Permitted
Payables. 

  

	16.4	 The Company does not have any accounts receivable owed to it by the Mechel Group companies or any other parties
exceeding in aggregate one hundred million rubles (RUB 100,000,000) all Companies, other than the Permitted Receivables. 

  

	16.5	 Other than the Agreed Contracts, Company 1 is not a party to any sale and purchase, supply or any other
agreement in relation to Company 1’s products, where the term of any such agreement expires more than thirty (30) calendar days after the date of this Agreement. 

 

	16.6	 The Company does not have any debt to the companies exercising the functions of sole executive bidy of the
Company in excess of fifty million rubles (RUB 50,000,000) in aggregate all Companies. 

  

	17.	 Miscellaneous 

No creditor or counterparty of the Seller or any of the Mechel Group companies, as set out in the Seller 1 Disclosure Letter and/or the Seller 2 Disclosure
Letter, may claim that this Agreement shall be held void or invalid due to failure to obtain their consent to the execution of this Agreement. 

  
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 Schedule 3    Form of the Restitution Agreement 

[*****] 

  
 77 

 Schedule 4    List of Mechel Affiliates 

[*****] 

  
 78 

 Schedule 5    Form of Escrow Agent (GPB (JSC)) Confirmation 

[*****] 

  
 79 

 Schedule 6    Agreed Contracts 

[*****] 

  
 80 

 Schedule 7    Lease and Financial Lease Agreements of the Companies

 [*****] 

  
 81 

 Schedule 8    Mechanism for Paying off Permitted Receivables 

[*****] 

  
 82

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