Document:

Exhibit 10.3

 

EXECUTION VERSION

 

SECOND AMENDED AND RESTATED SUBSIDIARY SECURITY
AGREEMENT

 

dated as of

October 25, 2019

 

between

 

THE GUARANTORS IDENTIFIED HEREIN

 

and

 

JPMORGAN CHASE BANK, N.A.

as Collateral Agent

 

     

     

    

 

TABLE OF CONTENTS

Page

 

	Section 1.	Definitions	3
	Section 2.	Grant of
Transaction Liens	11
	Section 3.	 General Representations and Warranties	12
	Section 4.	 Further Assurances; General Covenants	13
	Section 5.	 Cash Collateral Account; Blocked Accounts	16
	Section 6.	 Remedies upon Event of Default	18
	Section 7.	Application
of Proceeds	19
	Section 8.	Fees and
Expenses; Indemnification	22
	Section 9.	Authority
to Administer Collateral	23
	Section 10.	Limitation
on Duty in Respect of Collateral	24
	Section 11.	General Provisions
Concerning the Collateral Agent	24
	Section 12.	 Termination of Transaction Liens; Release of Collateral	27
	Section 13.	Notices	28
	Section 14.	No Implied
Waivers; Remedies Not Exclusive	29
	Section 15.	Successors
and Assigns	29
	Section 16.	Amendments
and Waivers	30
	Section 17.	Choice of
Law	30
	Section 18.	WAIVER OF
JURY TRIAL	30
	Section 19.	 Severability	30
	Section 20.	Amendment and Restatement	30
	Section 21.	Additional Guarantors	31

 

EXHIBITS:

 

	Exhibit A	Form of Perfection Certificate
	Exhibit B	Form of Joinder Agreement

 

SCHEDULES: 

 

	Schedule I	Lockbox Accounts and Collection Accounts

 

     

     

    

 

SECOND AMENDED AND RESTATED SUBSIDIARY
SECURITY AGREEMENT

 

SECOND AMENDED AND RESTATED SUBSIDIARY SECURITY
AGREEMENT dated as of October 25, 2019 (this “Agreement”) among the Guarantors (as defined herein) and JPMorgan
Chase Bank, N.A., as Collateral Agent.

 

WHEREAS, (i) United States Steel Corporation,
a Delaware corporation (the “Borrower”) and certain other parties thereto are parties to a Fourth Amended and
Restated Credit Agreement dated as of February 26, 2018 (as amended, amended and restated, supplemented or otherwise modified prior
to the date hereof, the “Existing Credit Agreement”) and (ii) the Borrower and the Collateral Agent and certain
other parties thereto are entering into the Credit Agreement (hereinafter defined), that amends and restates the Existing Credit
Agreement, and pursuant to which the Borrower intends to borrow funds and obtain letters of credit for the purposes set forth therein;

 

WHEREAS, U. S. Steel Seamless Tubular Operations,
LLC and the Collateral Agent are parties to the Subsidiary Security Agreement dated as of February 26, 2018 (as amended, amended
and restated, supplemented or otherwise modified prior to the date hereof, the “Existing Subsidiary Security Agreement”);

 

WHEREAS, United States Steel International,
Inc. became a party to the Existing Subsidiary Security Agreement pursuant to that certain Subsidiary Security Agreement Joinder
dated as of November 13, 2018 by and among United States Steel International, Inc. and the Collateral Agent;

 

WHEREAS, U.S. Steel Oilwell Services, LLC
and U.S. Steel Tubular Products, Inc. became party to the Existing Subsidiary Security Agreement pursuant to that certain Subsidiary
Security Agreement Joinder dated as of May 21, 2019 by and among U.S. Steel Oilwell Services, LLC, U.S. Steel Tubular Products,
Inc. and the Collateral Agent;

 

WHEREAS, the parties hereto desire to amend
and restate the Existing Subsidiary Security Agreement as provided in this Agreement;

 

WHEREAS, pursuant to the Credit Agreement,
the Borrower has elected to cause each Guarantor to become a Subsidiary Guarantor and to enter into this Agreement;

 

NOW, THEREFORE, in consideration of
the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree that the Existing Subsidiary Security Agreement is amended and restated in its entirety as follows:

 

    2 

     

    

 

Section
1. Definitions.

 

(a)           
Terms Defined in Credit Agreement. Terms defined in the Credit Agreement and not otherwise defined in this Agreement
have the meanings given to them in the Credit Agreement.

 

(b)           
Terms Defined in UCC. As used herein, each of the following terms has the meaning specified in the UCC:

 

	
        Term
	 	
        UCC

	Account	 	9-102
	Authenticate	 	9-102
	Chattel Paper	 	9-102
	Deposit Account	 	9-102
	General Intangible	 	9-102
	Instrument	 	9-102
	Inventory	 	9-102
	Letter-of-Credit Right	 	9-102
	Supporting Obligation	 	9-102

 

(c)           
Additional Definitions. The following additional terms, as used herein, have the following meanings:

 

“Administrative Agent”
means JPMorgan Chase Bank, N.A., in its capacity as administrative agent under the Loan Documents, and its successors in such capacity.

 

“Agreement” has the meaning
set forth in the preamble to this Agreement.

 

“Article 9” means Article
9 of the UCC.

 

“Bi-Lateral Letter of Credit”
means any letter of credit issued by a Bi-Lateral Letter of Credit Lender for the account of the Borrower.

 

“Bi-Lateral Letter of Credit Lender”
means any Person that is a Lender or Lender Affiliate as of both (i) the date of issuance (or amendment, renewal or extension)
of the applicable Bi-Lateral Letter of Credit and (ii) the date of designation of the applicable Bi-Lateral Letter of Credit Obligation
as a “Secured Bi-Lateral Letter of Credit Obligation” pursuant to Section 20 of the Borrower Security Agreement.

 

“Bi-Lateral Letter of Credit Obligation”
means any reimbursement obligation or other payment obligation of the Borrower owing to any Bi-Lateral Letter of Credit Lender
in connection with any Bi-Lateral Letter of Credit issued by such Bi-Lateral Letter of Credit Lender.

 

    3 

     

    

 

“Blocked Account” means
each of the Lockbox Accounts, the Collection Accounts or any other Deposit Account, in each case that has been subjected to a Blocked
Account Agreement pursuant to Section 5(b).

 

“Blocked Account Agreement”
means, with respect to any account, a blocked account agreement in favor of the Collateral Agent, all in form and substance reasonably
satisfactory to the Collateral Agent.

 

“Borrower” has the meaning
set forth in the preamble to this Agreement.

 

“Cash Collateral Account”
has the meaning set forth in Section 5.

 

“Cash Management Obligation”
means the liability of the Borrower owing to any Person which is a Lender or Lender Affiliate as of the date of designation of
such Cash Management Obligation as a Secured Cash Management Obligation pursuant to Section 20 of the Borrower Security Agreement
arising out of (a) the execution or processing of electronic transfers of funds by automatic clearing house transfer, wire transfer
or otherwise to or from the deposit accounts of the Borrower now or hereafter maintained with such Lender or Lender Affiliate,
(b) the acceptance for deposit or the honoring for payment of any check, draft or other item with respect to any such deposit accounts,
(c) purchasing card, debit card or credit card arrangements offered by such Lender or Lender Affiliate and (d) any other deposit,
disbursement, and cash management services afforded to the Borrower by such Lender or Lender Affiliate.

 

“Collateral” means all
property of the Lien Grantors, whether now owned or hereafter acquired, on which a Lien is granted or purports to be granted to
the Collateral Agent pursuant to the Security Documents.

 

“Collateral Agent” means
JPMorgan Chase Bank, N.A., in its capacity as Collateral Agent for the Secured Parties under the Security Documents, and its successors
in such capacity.

 

“Collection Account”
means each deposit account listed on Schedule I hereto under the heading “Collection Accounts” and any other collection
account established by any Lien Grantor into which collections on Pledged Receivables are deposited or into which amounts collected
in any Lockbox Account are transferred.

 

“Commodity Exchange Act”
means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

 

“Contracts” means all
General Intangibles related to the sale, lease, exchange, or other disposition of Inventory, whether or not performed and whether
or not subject to termination upon a contingency or at the option of any party thereto.

 

    4 

     

    

 

“Credit Agreement” means
the Fifth Amended and Restated Credit Agreement dated as of October 25, 2019 among the Borrower, the Lenders party thereto, the
LC Issuing Banks party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent.

 

“Derivative Contract”
means, with respect to any Derivative Obligation, the written contract evidencing such Derivative Obligation.

 

“Derivative Obligation”
means any obligation of the Borrower in respect of any rate swap transaction, basis swap, forward rate transaction, commodity swap,
commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange
transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction,
currency option or any other similar transaction (including any option with respect to any of the foregoing transactions) or any
combination of the foregoing transactions, in each case owing to any Person that was a Lender or Lender Affiliate on the trade
date for such Derivative Obligation (or an assignee of such Person).

 

“Earn Out Condition”
means the following condition for terminating a Sweep Period: Facility Availability shall have been greater than the greater of
(x) the amount that is 10% of the aggregate amount of the Commitments and (y) $200,000,000 for 60 consecutive days.

 

“Eligible Transferee”
means any Person that is not a Subsidiary of the Borrower that purchases, or receives as collateral, Receivables from any Credit
Party in connection with a Permitted Supply Chain Financing.

 

“Event of Default” means
any Event of Default as defined in the Credit Agreement and any similar event with respect to any Secured Derivative Obligation
that permits the acceleration of the maturity thereof (or an equivalent remedy).

 

“Excluded Derivative
Obligations” means, with respect to any Lien Grantor, any Derivative Obligation if, and to the extent that, all or
a portion of the guarantee of such Lien Grantor of, or the grant by such Lien Grantor of a security interest to secure, such
Derivative Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule,
regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any
thereof) by virtue of such Lien Grantor’s failure for any reason to constitute an “eligible contract
participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the guarantee of such
Lien Grantor or the grant of such security interest becomes effective with respect to such Derivative Obligation. If a
Derivative Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the
portion of such Derivative Obligation that is attributable to swaps for which such guarantee or security interest is or
becomes illegal.

 

    5 

     

    

 

“First Secured Derivative Obligations”
means the Derivative Obligations that are designated by the Borrower as “First Secured Derivative Obligations” pursuant
to Section 20 of the Borrower Security Agreement. For the avoidance
of doubt, unless the context otherwise requires, any reference herein to the “amount” or the “principal amount”
of a First Secured Derivative Obligation shall refer to then current Mark-to-Market Value of such First Secured Derivative Obligation.

 

“Guarantor” means (i) each
Domestic Subsidiary (including U.S. Steel Seamless Tubular Operations, LLC, United States Steel International, Inc., U.S. Steel
Oilwell Services, LLC and U.S. Steel Tubular Products, Inc.) of the Borrower that is a party hereto as of the Effective Date, and
(ii) each other Domestic Subsidiary that becomes a party to this Agreement after the Effective Date in accordance with Section 21
hereof and the Collateral and Guarantee Requirement under the Credit Agreement.

 

“Joinder Agreement” means
a Subsidiary Security Agreement Joinder to this Agreement in substantially the form of Exhibit B hereto.

 

“Lien Grantor” means
each Guarantor.

 

“Liquid Investment” means
(i) direct obligations of the United States or any agency thereof, (ii) obligations guaranteed by the United States or any agency
thereof, (iii) money market funds that invest solely in obligations described in clauses (i) and (ii) of this definition, (iv)
time deposits and money market deposit accounts issued by or guaranteed by or placed with a Lender, and (v) fully collateralized
repurchase agreements for securities described in clause (i) or (ii) entered into with a Lender, provided in each case that
such Liquid Investment (x) matures within 30 days after it is first included in the Collateral and (y) is in a form, and is issued
and held in a manner, that in the reasonable judgment of the Collateral Agent permits appropriate measures to have been taken to
perfect security interests therein.

 

“Liquidated Secured Obligation”
means at any time any Secured Obligation (or portion thereof) that is not an Unliquidated Secured Obligation at such time.

 

“Lockbox Accounts” means
each deposit account listed on Schedule I hereto under the heading “Lockbox Accounts” and any other lockbox account
established by any Lien Grantor into which collections on Pledged Receivables are deposited.

 

    6 

     

    

 

“Mark-to-Market Value”
means, at any date with respect to any Derivative Obligation, the lesser of (i) the amount that would be payable by the Borrower
if the applicable Derivative Contract were terminated at such time in circumstances in which the Borrower was the defaulting party,
taking into account the effect of any enforceable netting arrangement between the parties to such Derivative Contract with respect
to mutual obligations in respect of other Secured Derivative Obligations between such parties and (ii) the amount stated in the
applicable Derivative Contract to be the maximum amount which can be asserted as a secured claim against the Collateral.

 

“Opinion of Counsel”
means a written opinion of legal counsel (who may be counsel to a Lien Grantor or other counsel, in either case approved by the
Collateral Agent, which approval shall not be unreasonably withheld) addressed and delivered to the Collateral Agent.

 

“own” refers to the possession
of sufficient rights in property to grant a security interest therein as contemplated by UCC Section 9-203, and “acquire”
refers to the acquisition of any such rights.

 

“Perfection Certificate”
means a certificate from the Lien Grantors substantially in the form of Exhibit A, completed and supplemented with the schedules
contemplated thereby to the reasonable satisfaction of the Collateral Agent, and signed by an officer of each Lien Grantor.

 

“Permitted Liens” means
(i) the Transaction Liens and (ii) any other Liens on the Collateral permitted to be created or assumed or to exist pursuant to
the Credit Agreement, including such Liens arising in connection with Permitted Supply Chain Financings.

 

“Pledged Receivables”
means at any time Receivables that are included (or that creates rights that are included) in the Collateral at such time.

 

“Post-Petition Interest”
means any interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency
or reorganization of any Lien Grantor (or would accrue but for the operation of applicable bankruptcy or insolvency laws), whether
or not such interest is allowed or allowable as a claim in any such proceeding.

 

“Proceeds” means
all proceeds of, and all other profits, products, rents or receipts, in whatever form, arising from the collection, sale,
lease, exchange, assignment, licensing or other disposition of, or other realization upon, any Collateral, including all
claims of any Lien Grantor against third parties for loss of, damage to or destruction of, or for proceeds payable under, or
unearned premiums with respect to, policies of insurance in respect of, any Collateral, and any condemnation or requisition
payments with respect to any Collateral.

 

    7 

     

    

 

“Receivables” means all
Accounts owned by any Lien Grantor and all other rights, titles or interests which, in accordance with GAAP would be included in
receivables on its balance sheet (including any such Accounts and/or rights, titles or interests that might be characterized as
Chattel Paper, Instruments or General Intangibles under the Uniform Commercial Code in effect in any jurisdiction), in each case
arising from the sale, lease, exchange or other disposition of Inventory, and all of any Lien Grantor’s rights to any goods,
services or other property related to any of the foregoing (including returned or repossessed goods and unpaid seller’s rights
of rescission, replevin, reclamation and rights to stoppage in transit), and all collateral security and supporting obligations
of any kind given by any Person with respect to any of the foregoing.

 

“Related Documents” means
the Credit Agreement, any promissory notes issued pursuant to Section 2.17(d) of the Credit Agreement, the Security Documents,
and the Subsidiary Guarantee Agreements.

 

“Related Parties” means,
with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and its Affiliates.

 

“Release Conditions”
means the following conditions for terminating all the Transaction Liens:

 

(i)        all
Commitments under the Credit Agreement shall have expired or been terminated;

 

(ii)       all
Liquidated Secured Obligations shall have been paid in full; and

 

(iii)      no
Unliquidated Secured Obligation shall remain outstanding or such Unliquidated Secured Obligation shall be cash collateralized to
an extent and in a manner reasonably satisfactory to each affected Secured Party.

 

“Second Secured Derivative
Obligations” means all Secured Derivative Obligations that are not First Secured Derivative Obligations. For the
avoidance of doubt, unless the context otherwise requires, any reference herein to the “amount” or the
 “principal amount” of a Second Secured Derivative Obligation shall refer to then current Mark-to-Market Value of
such Second Secured Derivative Obligation.

 

“Secured Agreement”,
when used with respect to any Secured Obligation, refers collectively to each instrument, agreement or other document that sets
forth obligations of any Lien Grantor and/or rights of the holder with respect to such Secured Obligation.

 

    8 

     

    

 

“Secured Bi-Lateral Letter of Credit
Obligations” means the Bi-Lateral Letter of Credit Obligations that are designated by the Borrower as “Secured
Bi-Lateral Letter of Credit Obligations” pursuant to Section 20 of the Borrower Security Agreement.

 

“Secured Cash Management Obligations”
means the Cash Management Obligations that are designated by the Borrower as “Secured Cash Management Obligations”
pursuant to Section 20 of the Borrower Security Agreement.

 

“Secured Derivative Obligations”
means the Derivative Obligations that are designated by the Borrower as additional Secured Obligations pursuant to Section 20 of
the Borrower Security Agreement; provided that Secured Derivative Obligations shall not include Excluded Derivative Obligations.

 

“Secured Loan Obligations”
means all principal of all Loans and LC Reimbursement Obligations outstanding from time to time under the Credit Agreement, all
interest (including Post-Petition Interest) on such Loans and LC Reimbursement Obligations and all other amounts now or hereafter
payable by the Borrower pursuant to the Loan Documents.

 

“Secured Obligations”
means the Secured Loan Obligations, the Secured Derivative Obligations, the Secured Bi-Lateral Letter of Credit Obligations, the
Secured Cash Management Obligations and the Secured Vendor Financing Obligations and the Guarantees thereof made by the Guarantors
pursuant to any Subsidiary Guarantee Agreement; provided that the Secured Obligations of any Lien Grantor shall not include
Excluded Derivative Obligations.

 

“Secured Parties” means
the holders from time to time of the Secured Obligations, and “Secured Party” means any of them as the context may
require.

 

“Secured Vendor Financing Obligations”
means the Vendor Financing Obligations that are designated by the Borrower as “Secured Vendor Financing Obligations”
pursuant to Section 20 of the Borrower Security Agreement.

 

“Security Documents”
means this Agreement, the Borrower Security Agreement and all other supplemental or additional security agreements, control agreements,
or similar instruments delivered pursuant to the Loan Documents.

 

“Sweep Period” means
(i) the period that begins on the first date on which Facility Availability is less than or equal to the greater of (x) the amount
that is 10% of the aggregate amount of the Commitments and (y) $200,000,000, and ends on the first date when all Release Conditions
are satisfied, or, solely with respect to the initial Sweep Period, any earlier date on which the Earn Out Condition shall have
been satisfied; and (ii) each period that begins upon the occurrence of (x) an Event of Default described in Section 7(a),
Section 7(i), Section 7(j) or Section 7(k) of the Credit Agreement, or (y) an Event of Default caused by the Borrower’s
failure to perform the covenant contained in Section 6.03 of the Credit Agreement, and ends when no Event of Default is continuing;
provided that, except in the case of a Sweep Period that begins upon the occurrence of any Event of Default described in Section
7(a), Section 7(i), Section 7(j) or Section 7(k) of the Credit Agreement with respect to the Borrower (which Sweep Period shall
commence automatically upon the occurrence of such Event of Default), no Sweep Period shall be deemed to have commenced unless
and until the Collateral Agent shall have so determined and shall have so notified the Borrower.

 

    9 

     

    

 

 

“Transaction Liens” means
the Liens granted by the Lien Grantors under the Security Documents.

 

“Transferred Receivables”
means any Receivables that have been sold, contributed or otherwise transferred to an Eligible Transferee in connection with a
Permitted Supply Chain Financing that is permitted under the Credit Agreement.

 

“UCC” means the Uniform
Commercial Code as in effect from time to time in the State of New York; provided that, if perfection or the effect of perfection
or non-perfection or the priority of any Transaction Lien on any Collateral is governed by the Uniform Commercial Code as in effect
in a jurisdiction other than New York, “UCC” means the Uniform Commercial Code as in effect from time to time in such
other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or
priority.

 

“Unliquidated Secured Obligation”
means, at any time, any Secured Obligation (or portion thereof) that is contingent in nature or unliquidated at such time, including
any Secured Obligation that is:

 

(i)       an
obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it;

 

(ii)      any
other obligation (including any guarantee) that is contingent in nature at such time; or

 

(iii)     an
obligation to provide collateral to secure any of the foregoing types of obligations.

 

“Vendor Financing Facility”
means any arrangement among the Borrower and a Vendor Financing Lender whereby the Vendor Financing Lender makes payment on behalf
of the Borrower of amounts payable by the Borrower to its suppliers and vendors.

 

    10 

     

    

 

“Vendor Financing Lender”
means any Person which is a Lender or Lender Affiliate as of both (i) the date of effectiveness of the applicable Vendor Financing
Facility and (ii) the date of designation of the applicable Vendor Financing Obligation as a “Secured Vendor Financing Obligation”
pursuant to Section 20 of the Borrower Security Agreement.

 

“Vendor Financing Obligation”
means any payment obligation of the Borrower owing to any Vendor Financing Lender arising in connection with any Vendor Financing
Facility.

 

(d)           
Terms Generally. The definitions of terms herein (including those incorporated by reference to the UCC or to another
document) apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun includes
the corresponding masculine, feminine, and neuter forms. The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to
have the same meaning and effect as the word “shall”. Unless the context requires otherwise, (a) any definition of
or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument
or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s
successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references
herein to Sections, Exhibits and Schedules shall be construed to refer to Sections of, and Exhibits and Schedules to, this Agreement
and (e) the word “property” shall be construed to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.

 

Section
2. Grant of Transaction Liens.

 

(a)           
In order to secure the Secured Obligations, each Lien Grantor grants to the Collateral Agent for the benefit of the Secured
Parties a continuing security interest in all the following property of such Lien Grantor, whether now owned or existing or hereafter
acquired or arising and regardless of where located, subject to the exceptions set forth in Section 2(b):

 

(i)           
all Inventory;

 

(ii)          
all Receivables;

 

(iii)         
all Contracts;

 

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(iv)         
all Blocked Accounts, all Collection Accounts, all Lockbox Accounts and the Cash Collateral Account, and all cash, cash
equivalents or other assets on deposit therein or credited thereto;

 

(v)          
all books and records (including customer lists, credit files, computer programs, printouts and other computer materials
and records) of such Lien Grantor pertaining to any of its Collateral;

 

(vi)         
all General Intangibles, Documents, Instruments, Chattel Paper and insurance proceeds relating to the Collateral described
in the foregoing clauses (i) through (v); and

 

(vii)        
all other Proceeds of the Collateral described in the foregoing clauses (i) through (vi).

 

(b)           
The Collateral shall not include Transferred Receivables.

 

(c)           
With respect to each right to payment or performance included in the Collateral from time to time, the Transaction Lien
granted therein includes a continuing security interest in all right, title and interest of the applicable Lien Grantor in and
to (i) any Supporting Obligation that supports such payment or performance and (ii) any Lien that (x) secures such right to payment
or performance or (y) secures any such Supporting Obligation.

 

(d)           
The Transaction Liens are granted as security only and shall not subject the Collateral Agent or any other Secured Party
to, or transfer or in any way affect or modify, any obligation or liability of any Lien Grantor with respect to any of the Collateral
or any transaction in connection therewith.

 

Section
3. General Representations and Warranties. Each Lien Grantor represents and warrants that:

 

(a)           
Such Lien Grantor is duly organized, validly existing and in good standing under the laws of the jurisdiction identified
as its jurisdiction of organization in its Perfection Certificate.

 

(b)           
Such Lien Grantor has good and marketable title to all its Collateral (subject to exceptions that are, in the aggregate,
not material), free and clear of any Lien other than Permitted Liens.

 

(c)           
Such Lien Grantor has not performed any acts that would prevent the Collateral Agent from enforcing any of the provisions
of the Security Documents or that would reasonably be expected to limit the Collateral Agent in any such enforcement. Such Lien
Grantor has not authorized or entered into any financing statement, security agreement, mortgage or similar or equivalent document
or instrument covering all or part of the Collateral owned by such Lien Grantor nor is it aware that any such document or instrument
is on file or of record in any jurisdiction in which such filing or recording would be effective to perfect or record a Lien on
such Collateral, except financing statements, mortgages or other similar or equivalent documents with respect to Permitted Liens.
After the date hereof, no Collateral owned by such Lien Grantor will be in the possession or under the control of any other Person
having a Lien thereon, other than a Permitted Lien.

 

    12 

     

    

 

(d)           
The Transaction Liens on all Collateral owned by such Lien Grantor (i) have been validly created, (ii) will attach to each
item of such Collateral on the date hereof (or, if such Lien Grantor first obtains rights thereto on a later date, on such later
date) and (iii) when so attached, will secure all the Secured Obligations.

 

(e)           
Such Lien Grantor has delivered a Perfection Certificate to the Collateral Agent. The information set forth therein with
respect to such Lien Grantor is correct and complete as of the date hereof. After the date hereof, the Collateral Agent or the
Administrative Agent may obtain, at the applicable Lien Grantor’s expense, a file search report from each UCC filing office
listed in its Perfection Certificate, showing the filing made at such filing office to perfect the Transaction Liens on the Collateral.

 

(f)            
The Transaction Liens constitute perfected security interests in the Collateral owned by such Lien Grantor to the extent
that a security interest therein may be perfected by filing pursuant to the UCC, prior to all Liens and rights of others therein
except Permitted Liens. With respect to such Lien Grantor and its Collateral, no registration, recordation, or filing with any
governmental body, agency, or official is required in connection with the execution or delivery of the Security Documents or is
necessary for the validity or enforceability thereof or for the perfection of the Transaction Liens pursuant to the UCC or for
the enforcement of the Transaction Liens pursuant to the UCC.

 

(g)           
Each Lien Grantor has taken, and will continue to take, all actions necessary under the UCC to perfect its interest in any
Receivables purchased or otherwise acquired by it, as against its assignors and creditors of its assignors.

 

(h)           
Each Lien Grantor’s Collateral is insured as required by the Credit Agreement.

 

(i)            
Any Inventory produced by any Lien Grantor has or will have been produced in compliance with the applicable requirements
of the Fair Labor Standards Act, as amended.

 

Section
4. Further Assurances; General Covenants. Each Lien Grantor covenants as follows:

 

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(a)           
Such Lien Grantor will, from time to time, at its own expense, execute, deliver, authorize, file and record any statement,
assignment, instrument, document, agreement or other paper and take any other action (including (x) any filing of financing or
continuation statements under the UCC and (y) subject to Section 5(b), causing any lockbox, collection or similar account into
which payments with respect to Receivables then owned by such Lien Grantor will be received to be subjected to Blocked Account
Agreements) that from time to time may be reasonably necessary or desirable, or that the Collateral Agent may reasonably request,
in order to:

 

(i)           
create, preserve, perfect, confirm or validate the Transaction Liens on the Collateral;

 

(ii)          
enable the Collateral Agent and the other Secured Parties to obtain the full benefits of the Security Documents; or

 

(iii)         
enable the Collateral Agent to exercise and enforce any of its rights, powers, and remedies with respect to any of the Collateral.

 

To the extent permitted by applicable law, each Lien Grantor
authorizes the Collateral Agent to execute and file such financing statements or continuation statements as may be necessary or
appropriate to reflect the security interests granted by this Agreement. The Collateral Agent shall provide such Lien Grantor with
copies of any such financing statements and continuation statements. Each Lien Grantor agrees that a photocopy or other reproduction
of this Agreement or of a financing statement is sufficient as a financing statement to the extent permitted by law. Each Lien
Grantor constitutes the Collateral Agent its attorney-in-fact to execute and file all filings required or so requested for the
foregoing purposes, all acts of such attorney being hereby ratified and confirmed; and such power, being coupled with an interest,
shall be irrevocable until all the Transaction Liens granted by such Lien Grantor terminate pursuant to Section 12. The Borrower
will pay the reasonable and documented out-of-pocket costs of, or incidental to, any recording or filing of any financing or continuation
statements or other documents recorded or filed pursuant hereto.

 

(b)            No
Lien Grantor will (i) change its name or organizational entity type, or (ii) change its location (determined as provided in
UCC Section 9-307) unless it shall have given the Collateral Agent prior notice thereof and delivered an Opinion of
Counsel with respect thereto in accordance with Section 4(c).

 

(c)           
Within 10 days after it takes any action contemplated by Section 4(b), each Lien Grantor, at its own expense, will cause
to be delivered to the Collateral Agent an Opinion of Counsel, in form and substance reasonably satisfactory to the Collateral
Agent, to the effect that (i) all financing statements and amendments or supplements thereto, continuation statements and other
documents required to be filed or recorded in order to perfect and protect the Transaction Liens against all creditors of and purchasers
from such Lien Grantor after it takes such action (except any applicable continuation statements specified in such Opinion of Counsel
that are to be filed more than six months after the date thereof) have been filed or recorded in each office necessary for such
purpose, (ii) all fees and taxes, if any, payable in connection with such filings or recordings have been paid in full and (iii)
except as otherwise agreed by the Required Lenders, such action will not adversely affect the perfection or priority of the Transaction
Lien on any Collateral to be owned by such Lien Grantor after it takes such action or the accuracy of such Lien Grantor’s
representations and warranties herein relating to such Collateral.

 

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(d)           
No Lien Grantor will sell, lease, exchange, assign or otherwise dispose of, or grant any option with respect to, any of
its Collateral; provided that each Lien Grantor may do any of the foregoing unless (i) doing so would breach a covenant
in the Credit Agreement (including, for the avoidance of doubt, the last sentence of Section 5.02(c) of the Credit Agreement) or
(ii) an Event of Default shall have occurred and be continuing and the Collateral Agent shall have notified such Lien Grantor that
its right to do so is terminated, suspended or otherwise limited. Concurrently with any sale or other disposition (except a lease)
permitted by the foregoing proviso, the Transaction Liens on the assets sold or disposed of (but not in any Proceeds arising
from such sale or disposition) will cease immediately without any action by the Collateral Agent or any other Secured Party. The
Collateral Agent will, at the applicable Lien Grantor’s expense, execute and deliver to any Lien Grantor such documents as
such Lien Grantor shall reasonably request to evidence the fact that any asset so sold or disposed of is no longer subject to a
Transaction Lien.

 

(e)            Each
Lien Grantor will use commercially reasonable efforts to cause to be collected from its Account Debtors, when due, all
amounts owing under its Receivables (including delinquent Receivables, which will be collected in accordance with lawful
collection procedures) and will apply all amounts collected thereon, forthwith upon receipt thereof, to the outstanding
balances of such Receivables. Subject to the rights of the Collateral Agent hereunder if an Event of Default shall have
occurred and be continuing, each Lien Grantor may allow in the ordinary course of business as adjustments to amounts owing
under its Receivables (but without limiting the effect of the definition of “Ineligible Receivables” contained in
the Credit Agreement) (i) any extension or renewal of the time or times for payment, or settlement for less than the total
unpaid balance, that such Lien Grantor finds appropriate in accordance with sound business judgment and (ii) refunds or
credits, all in the ordinary course of business and consistent with such Lien Grantor’s historical collection
practices. The costs and expenses (including reasonable and documented attorney’s fees) of collection, whether incurred
by any Lien Grantor or the Collateral Agent, shall be paid by any Lien Grantor. If an Event of Default shall have occurred
and be continuing, each Lien Grantor will, if requested to do so by the Collateral Agent, promptly notify (and each Lien
Grantor authorizes the Collateral Agent to so notify) each Account Debtor in respect of its Receivables that such Receivables
have been assigned to the Collateral Agent hereunder, and that any payments due or to become due in respect of such
Receivables are to be made directly to the Collateral Agent.

 

    15 

     

    

 

(f)            
Each Lien Grantor will, promptly upon request, provide to the Collateral Agent all information and evidence concerning the
Collateral that the Collateral Agent may reasonably request from time to time to enable it to enforce the provisions of the Security
Documents.

 

(g)           
From time to time upon request by the Collateral Agent, each Lien Grantor will, at its own expense, cause to be delivered
to the Secured Parties an Opinion of Counsel reasonably satisfactory to the Collateral Agent as to such matters relating to the
transactions contemplated hereby as the Collateral Agent may reasonably request.

 

Section
5. Cash Collateral Account; Blocked Accounts. (a) If and when required for purposes hereof, the Collateral Agent
will establish an account (the “Cash Collateral Account”), in the name and under the exclusive control of the
Collateral Agent, into which all amounts owned by the Lien Grantors that are to be deposited therein pursuant to the Loan Documents
shall be deposited from time to time.

 

(b)            At
all times after the Effective Date, each Lien Grantor shall maintain a cash management system that is reasonably
satisfactory to the Collateral Agent. At all times after the Effective Date (or, in the case of any Lien Grantor that becomes
a party hereto after the Effective Date, not later than 60 days after such Lien Grantor becomes a party hereto (or such
longer period as the Borrower and the Collateral Agent may agree)), each Lien Grantor shall (i) cause each of its Lockbox
Accounts and Collection Accounts to be subject to a Blocked Account Agreement and (ii) cause all Pledged Receivables to be
payable only to a Blocked Account. In addition, on each day on which collections of Pledged Receivables are received in any
Lockbox Account, each Lien Grantor shall cause such collections to be transferred from the applicable Lockbox Account to a
Collection Account. If any Lien Grantor receives collections in respect of Pledged Receivables other than in a Blocked
Account, such Lien Grantor shall immediately (or, in the case of any Lien Grantor that becomes a party hereto after the
Effective Date, on and after the date that is 60 days after such Lien Grantor becomes a party hereto (or such longer period
as the Borrower and the Collateral Agent may agree)) cause such collections to be deposited into a Blocked Account; provided
that U.S. Steel Oilwell Services, LLC shall not be subject to the requirements of this Section 5(b) until such time as
Receivables that would constitute Eligible Receivables of U.S. Steel Oilwell Services, LLC exceed $20,000,000 and (i)
Aggregate Facility Availability is less than the greater of (x) the amount that is 20% of the aggregate amount of the
Commitments and (y) $400,000,000 or (ii) a Default under paragraph (a), (b), (e)(i) or (f) (solely as a result of failure to
comply with Section 5 of any Security Agreement) of Article 7 of the Credit Agreement occurs (it being understood and agreed
that until the requirements of this Section 5(b) of the Security Agreement have been satisfied no Receivables of
Oilwell Services shall constitute Eligible Receivables).

 

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(c)           
 Upon the occurrence and during the continuation of an Event of Default or if a Sweep Period shall have occurred and be
continuing, the Collateral Agent may at any time thereafter give notice to any applicable depositary bank that the Collateral Agent
is exercising its rights under the applicable Blocked Account Agreements to do any or all of the following: (i) to have the exclusive
control of the Blocked Accounts and to exercise exclusive dominion and control over the funds and other assets deposited therein,
(ii) to have the proceeds that are sent to the Blocked Accounts redirected pursuant to the Collateral Agent’s instructions,
(iii) cause all amounts on deposit in any Blocked Account to be transferred to the Cash Collateral Account, (iv) subject to clause
(d), retain all cash and investments then held in any Blocked Account or the Cash Collateral Account and liquidate any or all investments
held therein, and (v) to take any or all other actions permitted under the applicable Blocked Account Agreement. Upon the occurrence
and during the continuation of an Event of Default, the Collateral Agent may also withdraw any amounts contained in a Blocked Account
or the Cash Collateral Account and apply such amounts as provided in Section 7. Each Lien Grantor hereby agrees that if the Collateral
Agent at any time takes any action set forth in the preceding sentence, the Collateral Agent shall have exclusive control of the
proceeds (including collections) of all Pledged Receivables and each Lien Grantor further agrees to take any other action that
the Collateral Agent may reasonably request to transfer such control.

 

(d)            During
any Sweep Period (i) all amounts held in the Cash Collateral Account (other than amounts deposited therein pursuant to
Section 2.11(b), Section 2.16(j) or Section 5.10(b) of the Credit Agreement as cash collateral for the LC Exposure) shall
be applied on a daily basis to first, the outstanding principal balance of the Base Rate Tranche A Loans until repaid
in full, or, if applicable, as provided in Section 7, (ii) second, following repayment in full of all outstanding Base
Rate Tranche A Loans pursuant to clause (i), any remaining amounts held in the Cash Collateral Account shall continue to be
held in the Cash Collateral Account and (other than amounts deposited therein pursuant to Section 2.11(b), Section 2.16(j) or
Section 5.10(b) of the Credit Agreement as cash collateral for the LC Exposure) shall be applied to the outstanding principal
balance of maturing Eurodollar Tranche A Loans upon expiration of the Interest Periods applicable thereto, (iii) third,
following repayment in full of all outstanding Eurodollar Tranche A Loans pursuant to clause (ii), any remaining amounts held
in the Cash Collateral Account shall continue to be held in the Cash Collateral Account and (other than amounts deposited
therein pursuant to Section 2.11(b), Section 2.16(j) or Section 5.10(b) of the Credit Agreement as cash collateral for the LC
Exposure) shall be applied to the outstanding principal balance of the Base Rate Tranche B Loans until repaid in full and
(iv) fourth, following repayment in full of all outstanding Base Rate Tranche B Loans pursuant to clause (iii), any
remaining amounts held in the Cash Collateral Account shall continue to be held in the Cash Collateral Account and (other
than amounts deposited therein pursuant to Section 2.11(b), Section 2.16(j) or Section 5.10(b) of the Credit Agreement as
cash collateral for the LC Exposure) shall be applied to the outstanding principal balance of maturing Eurodollar Tranche B
Loans upon expiration of the Interest Periods applicable thereto.

 

    17 

     

    

 

(e)           
Unless (x) a Sweep Period shall have occurred and be continuing, (y) an Event of Default shall have occurred and be
continuing and the Required Lenders shall have instructed the Collateral Agent to stop withdrawing amounts from the Cash Collateral
Account pursuant to this subsection or (z) the maturity of the Loans shall have been accelerated pursuant to Article 7 of the Credit
Agreement or pursuant to the proviso to the definition of “Termination Date” contained in the Credit Agreement (or
otherwise), the Collateral Agent shall withdraw amounts from the Cash Collateral Account (other than amounts required to be deposited
in the Cash Collateral Account pursuant to Section 2.11(b), 2.16(j) or Section 5.10(b) of the Credit Agreement) and remit such
amounts to, or as directed by, each applicable Lien Grantor from time to time.

 

(f)            
Funds held in any Blocked Account or the Cash Collateral Account may, until withdrawn or otherwise applied pursuant hereto,
be invested and reinvested in such Liquid Investments as each applicable Lien Grantor shall request from time to time; provided
that, if an Event of Default shall have occurred and be continuing, the Collateral Agent may select such Liquid Investments.

 

(g)            If
immediately available cash on deposit in any Blocked Account or the Cash Collateral Account is not sufficient to make any
distribution or withdrawal to be made pursuant hereto, the Collateral Agent will cause to be liquidated, as promptly as
practicable, such investments held in or credited to such account as shall be required to obtain sufficient cash to make such
distribution or withdrawal and, notwithstanding any other provision hereof, such distribution or withdrawal shall not be made
until such liquidation has taken place.

 

Section
6. Remedies upon Event of Default. (a) If an Event of Default shall have occurred and be continuing, the Collateral
Agent may exercise (or cause its sub-agents to exercise) any or all of the remedies available to it (or to such sub-agents) under
the Security Documents.

 

    18 

     

    

 

(b)           
Without limiting the generality of the foregoing, if an Event of Default shall have occurred and be continuing, the Collateral
Agent may exercise on behalf of the Secured Parties all the rights of a secured party under the UCC (whether or not in effect in
the jurisdiction where such rights are exercised) with respect to any Collateral and, in addition, the Collateral Agent may, without
being required to give any notice, except as herein provided or as may be required by mandatory provisions of law, withdraw all
cash held in the Cash Collateral Account or any Blocked Account and apply such cash as provided in Section 7 and, if there shall
be no such cash or if such cash shall be insufficient to pay all the Secured Obligations in full, sell, lease, license or otherwise
dispose of the Collateral or any part thereof. Notice of any such sale or other disposition shall be given to the applicable Lien
Grantor as required by Section 9.

 

(c)           
Without limiting the generality of the foregoing, during any Sweep Period, the Collateral Agent may (i) exercise all of
the remedies described in Section 5(d) and (ii) cause all amounts constituting Collateral that are held in any lockbox, collection
or other account of any Lien Grantor then subject to an effective Blocked Account Agreement to be transferred on a daily basis
to the Cash Collateral Account.

 

Section
7. Application of Proceeds. (a) If an Event of Default shall have occurred and be continuing, the Collateral Agent
may apply (i) any cash held in the Cash Collateral Account and (ii) the proceeds of any sale or other disposition of all or any
part of the Collateral, in the following order of priorities:

 

first, to pay the expenses of such
sale or other disposition, including reasonable compensation to agents of and counsel for the Collateral Agent, and all expenses,
liabilities and advances incurred or made by the Collateral Agent in connection with the Security Documents, and any other amounts
then due and payable to the Collateral Agent pursuant to Section 8 or to any Agent pursuant to the Credit Agreement;

 

second, ratably to (i) pay the
Secured Obligations consisting of unpaid principal of the Tranche A Loans and First Secured Derivative Obligations ratably
(or to provide for the payment thereof pursuant to Section 7(b)) and (ii) cash collateralize LC Exposures, until payment in
full of the principal of all such Secured Obligations described in this clause second shall have been made (or so
provided for) and all LC Exposures have been Cash Collateralized;

 

third, to pay ratably the Secured
Obligations consisting of all interest (including Post-Petition Interest) on the Tranche A Loans and all commitment and other fees
payable under the Related Documents with respect to the Tranche A Loans and related commitments, until payment in full of all such
interest and fees shall have been made;

 

    19 

     

    

 

fourth, to pay the Secured Obligations
consisting of unpaid principal of the Tranche B Loans ratably (or to provide for the payment thereof pursuant to Section 7(b)),
until payment in full of the principal of all such Secured Obligations described in this clause fourth shall have been made
(or so provided for);

 

fifth, to pay ratably the Secured
Obligations consisting of all interest (including Post-Petition Interest) on the Tranche B Loans and all commitment and other fees
payable under the Related Documents with respect to the Tranche B Loans and related commitments, until payment in full of all such
interest and fees shall have been made;

 

sixth, to pay all other Secured Obligations
(other than the Secured Bi-Lateral Letter of Credit Obligations, the Secured Cash Management Obligations, the Secured Vendor Financing
Obligations and the Second Secured Derivative Obligations) ratably (or to provide for the payment thereof pursuant to Section 7(b)),
until payment in full of all such other Secured Obligations (other than the Secured Bi-Lateral Letter of Credit Obligations, the
Secured Cash Management Obligations, the Secured Vendor Financing Obligations and the Second Secured Derivative Obligations) shall
have been made (or so provided for);

 

seventh, to pay ratably the unpaid
principal of the Secured Bi-Lateral Letter of Credit Obligations, the Secured Cash Management Obligations, and the Secured Vendor
Financing Obligations (or to provide payment therefor pursuant to Section 7(b)), until payment in full of the principal of all
Secured Bi-Lateral Letter of Credit Obligations, Secured Cash Management Obligations and Secured Vendor Financing Obligations shall
have been made (or so provided for);

 

eighth, to pay ratably all interest
(including Post-Petition Interest) on the Secured Bi-Lateral Letter of Credit Obligations, the Secured Cash Management Obligations,
the Secured Vendor Financing Obligations and the First Secured Derivative Obligations, until payment in full of all such interest
has been made;

 

ninth, to pay ratably all the unpaid
principal of the Second Secured Derivative Obligations;

 

tenth, to pay ratably all interest
on the Second Secured Derivative Obligations; and

 

finally, to pay to the Lien Grantors,
or as a court of competent jurisdiction may direct, any surplus then remaining from the proceeds of the Collateral owned by it.

 

The Collateral Agent may make such distributions
hereunder in cash or in kind or, on a ratable basis, in any combination thereof.

 

    20 

     

    

 

Notwithstanding anything to the contrary
herein, the parties hereto agree that the unpaid principal (i.e., the Mark-to-Market Value) of the First Secured Derivative Obligations
shall be paid, ratably with the unpaid principal of other Secured Obligations with respect to the Tranche A Loans, pursuant to
clause second; provided that if on the date of any application of cash or proceeds in accordance with this Section
7(a), the aggregate Mark-to-Market Value of First Secured Derivative Obligations exceeds an amount equal to (x) $200,000,000 minus
(y) the aggregate Mark-to-Market Value of First Secured Derivative Obligations previously paid pursuant to this Section 7(a) and
Section 7(a) of the Borrower Security Agreement (such amount, the “Available Derivative Amount” at such date),
then: (x) the Secured Obligations payable pursuant to clause second shall be the Mark-to-Market Value of First Secured Derivative
Obligations in an aggregate amount equal to the Available Derivative Amount at such date (which Available Derivative Amount shall
represent and be comprised of a ratable portion (the “Permitted Ratable Portion”) of the Mark-to-Market Value
of each First Secured Derivative Obligation), and (y) the portion of the Mark-to-Market Value of each First Secured Derivative
Obligation that is in excess of the Permitted Ratable Portion referred to in clause (x) (and is therefore not paid ratably with
the unpaid principal of Secured Obligations with respect to the Tranche A Loans pursuant to clause second) shall, for all purposes
of this Section 7(a), be treated as and deemed to be unpaid principal of a Second Secured Derivative Obligation, and shall be paid,
ratably with the unpaid principal of all other Second Secured Derivative Obligations, pursuant to clause ninth.

 

(b)            If
at any time any portion of any monies collected or received by the Collateral Agent would, but for the provisions of this
Section 7(b), be payable pursuant to Section 7(a) in respect of an Unliquidated Secured Obligation, the Collateral
Agent shall not apply any monies to pay such Unliquidated Secured Obligation but instead shall request the holder thereof, at
least 10 days before each proposed distribution hereunder, to notify the Collateral Agent as to the maximum amount of such
Unliquidated Secured Obligation if then ascertainable (e.g., in the case of a letter of credit, the maximum amount
available for subsequent drawings thereunder). If the holder of such Unliquidated Secured Obligation does not notify the
Collateral Agent of the maximum ascertainable amount thereof at least two Domestic Business Days before such distribution,
such Unliquidated Secured Obligation will not be entitled to share in such distribution. If such holder does so notify the
Collateral Agent as to the maximum ascertainable amount thereof, the Collateral Agent will allocate to such holder a portion
of the monies to be distributed in such distribution, calculated as if such Unliquidated Secured Obligation were outstanding
in such maximum ascertainable amount. However, the Collateral Agent will not apply such portion of such monies to pay such
Unliquidated Secured Obligation, but instead will hold such monies or invest such monies in Liquid Investments. All such
monies and Liquid Investments and all proceeds thereof will constitute Collateral hereunder, but will be subject to
distribution in accordance with this Section 7(b) rather than Section 7(a). The Collateral Agent will hold all such monies
and Liquid Investments and the net proceeds thereof in trust until all or part of such Unliquidated Secured Obligation
becomes a Liquidated Secured Obligation, whereupon the Collateral Agent at the request of the relevant Secured Party will
apply the amount so held in trust to pay such Liquidated Secured Obligation; provided that, if the other
Secured Obligations theretofore paid pursuant to the same clause of Section 7(a) were not paid in full, the Collateral Agent
will apply the amount so held in trust to pay the same percentage of such Liquidated Secured Obligation as the percentage of
such other Secured Obligations theretofore paid pursuant to the same clause of Section 7(a). If (i) the holder of such
Unliquidated Secured Obligation shall advise the Collateral Agent that no portion thereof remains in the category of an
Unliquidated Secured Obligation and (ii) the Collateral Agent still holds any amount held in trust pursuant to this Section
7(b)in respect of such Unliquidated Secured Obligation (after paying all amounts payable pursuant to the preceding sentence
with respect to any portions thereof that became Liquidated Secured Obligations), such remaining amount will be applied by
the Collateral Agent in the order of priorities set forth in Section 7(a).

 

    21 

     

    

 

(c)           
In making the payments and allocations required by this Section, the Collateral Agent may rely upon information supplied
to it pursuant to Section 11(g). All distributions made by the Collateral Agent pursuant to this Section shall be final (except
in the case of manifest error) and the Collateral Agent shall have no duty to inquire as to the application by any Secured Party
of any amount distributed to it.

 

Section
8. Fees and Expenses; Indemnification. (a) Each Lien Grantor will forthwith upon demand pay to the Collateral Agent:

 

(i)           
the amount of any taxes that the Collateral Agent may have been required to pay by reason of the Transaction Liens or to
free any Collateral from any other Lien thereon;

 

(ii)           the
amount of any and all reasonable and documented out-of-pocket expenses, including transfer taxes and reasonable
and documented fees and expenses of counsel and other experts, that the Collateral Agent may incur in connection with (x) the
administration or enforcement of the Security Documents, including such expenses as are incurred to preserve the value of the
Collateral or the validity, perfection, rank or value of any Transaction Lien, (y) the collection, sale or other disposition
of any Collateral or (z) the exercise by the Collateral Agent of any of its rights or powers under the Security
Documents;

 

(iii)         
the amount of any fees that such Lien Grantor shall have agreed in writing to pay to the Collateral Agent and that shall
have become due and payable in accordance with such written agreement; and

 

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(iv)         
the amount required to indemnify the Collateral Agent for, or hold it harmless and defend it against, any loss, liability
or expense (including the reasonable and documented fees and expenses of its counsel and any experts or sub-agents appointed by
it hereunder) incurred or suffered by the Collateral Agent in connection with the Security Documents, except to the extent that
such loss, liability or expense arises from the Collateral Agent’s gross negligence or willful misconduct or a breach of
any duty that the Collateral Agent has under this Agreement (after giving effect to Sections 10 and 11).

 

Any such amount not paid to the Collateral Agent on demand will
bear interest for each day thereafter until paid at a rate per annum equal to the sum of 2.00% plus the Base Rate for such day
plus the Applicable Rate that would, in the absence of an Event of Default, be applicable to the Base Rate Loans for such day.

 

(b)           
If any transfer tax, documentary stamp tax or other tax is payable in connection with any transfer or other transaction
provided for in the Security Documents, the applicable Lien Grantor will pay such tax and provide any required tax stamps to the
Collateral Agent or as otherwise required by law.

 

Section
9. Authority to Administer Collateral. Each Lien Grantor irrevocably appoints the Collateral Agent its true and lawful
attorney, with full power of substitution, in the name of such Lien Grantor, any Secured Party or otherwise, for the sole use and
benefit of the Secured Parties, but at such Lien Grantor’s expense, to the extent permitted by law to exercise, at any time
and from time to time while an Event of Default shall have occurred and be continuing, all or any of the following powers with
respect to all or any of the Collateral (to the extent necessary to pay the Secured Obligations in full):

 

(a)           
to demand, sue for, collect, receive and give acquittance for any and all monies due or to become due upon or by virtue
thereof,

 

(b)           
to settle, compromise, compound, prosecute or defend any action or proceeding with respect thereto,

 

(c)           
to sell, lease, license or otherwise dispose of the same or the proceeds or avails thereof, as fully and effectually as
if the Collateral Agent were the absolute owner thereof, and

 

(d)           
to extend the time of payment of any or all thereof and to make any allowance or other adjustment with reference thereto;

 

provided that, except in the case of Collateral that
is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, the Collateral
Agent will give the applicable Lien Grantor at least ten days’ prior written notice of the time and place of any public sale
thereof or the time after which any private sale or other intended disposition thereof will be made. Any such notice shall (i)
contain the information specified in UCC Section 9-613, (ii) be Authenticated and (iii) be sent to the parties required to be notified
pursuant to UCC Section 9-611(c); provided that, if the Collateral Agent fails to comply with this sentence in any respect,
its liability for such failure shall be limited to the liability (if any) imposed on it as a matter of law under the UCC.

 

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Section
10. Limitation on Duty in Respect of Collateral.  Beyond the exercise of reasonable care in the custody and preservation
thereof, the Collateral Agent will have no duty as to any Collateral in its possession or control or in the possession or control
of any sub-agent or bailee or any income therefrom or as to the preservation of rights against prior parties or any other rights
pertaining thereto. The Collateral Agent will be deemed to have exercised reasonable care in the custody and preservation of the
Collateral in its possession or control if such Collateral is accorded treatment substantially equal to that which it accords its
own property, and will not be liable or responsible for any loss or damage to any Collateral, or for any diminution in the value
thereof, by reason of any act or omission of any sub-agent or bailee selected by the Collateral Agent in good faith or by reason
of any act or omission by the Collateral Agent pursuant to instructions from the Administrative Agent, except to the extent that
such liability arises from the Collateral Agent’s gross negligence or willful misconduct.

 

Section
11. General Provisions Concerning the Collateral Agent. (a) Authority. The Collateral Agent is authorized
to take such actions and to exercise such powers as are delegated to the Collateral Agent by the terms of the Security Documents,
together with such actions and powers as are reasonably incidental thereto.

 

(b)            Coordination
with Secured Parties. To the extent requested to do so by any Secured Party, the Collateral Agent will promptly notify
such Secured Party of each notice or other communication received by the Collateral Agent hereunder and/or deliver a copy
thereof to such Secured Party. As to any matters not expressly provided for herein (including (i) the timing and methods of
realization upon the Collateral and (ii) the exercise of any power that the Collateral Agent may, but is not expressly
required to, exercise under any Security Document), the Collateral Agent shall act or refrain from acting in accordance with
written instructions from the Required Lenders or, in the absence of such instructions, in accordance with its discretion
(subject to the following provisions of this Section).

 

(c)           
Rights and Powers as a Secured Party. The Person serving as the Collateral Agent shall, in its capacity as a Secured
Party, have the same rights and powers as any other Secured Party and may exercise the same as though it were not the Collateral
Agent. Such Person and its Affiliates may accept deposits from, lend money to, and generally engage in any kind of business with
the Borrower, any of its Subsidiaries (including any Lien Grantor) or their respective Affiliates as if it were not the Collateral
Agent hereunder.

 

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(d)            Limited
Duties and Responsibilities. The Collateral Agent shall not have any duties or obligations under the Security Documents
except those expressly set forth therein. Without limiting the generality of the foregoing, (a) the Collateral Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether an Event of Default has occurred and is
continuing, (b) the Collateral Agent shall not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated by the Security Documents that the Collateral Agent is
required in writing to exercise by the Required Lenders, and (c) except as expressly set forth in the Security Documents, the
Collateral Agent shall not have any duty to disclose, and shall not be liable for any failure to disclose, any information
relating to the Borrower or any of its Subsidiaries (including any Lien Grantor) that is communicated to or obtained by the
bank serving as Collateral Agent or any of its Affiliates in any capacity. The Collateral Agent shall not be liable for any
action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02 of the Credit Agreement)
or in the absence of its own gross negligence or willful misconduct. The Collateral Agent shall not be responsible for the
existence, genuineness, or value of any Collateral or for the validity, perfection, priority, or enforceability of any
Transaction Lien, whether impaired by operation of law or by reason of any action or omission to act on its part under the
Security Documents. The Collateral Agent shall be deemed not to have knowledge of any Event of Default unless and until
written notice thereof is given to the Collateral Agent by the Borrower or a Secured Party, and the Collateral Agent shall
not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or
in connection with any Security Document, (ii) the contents of any certificate, report or other document delivered thereunder
or in connection therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or
conditions set forth in any Security Document, (iv) the validity, enforceability, effectiveness or genuineness of any
Security Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in any
Security Document.

 

(e)           
Authority to Rely on Certain Writings, Statements, and Advice. The Collateral Agent shall be entitled to rely on,
and shall not incur any liability for relying on, any notice, request, certificate, consent, statement, instrument, document, or
other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Collateral Agent also may
rely on any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur
any liability for relying thereon. The Collateral Agent may consult with legal counsel (who may be counsel for the Borrower or
any of its Subsidiaries (including any Lien Grantor)), independent accountants and other experts selected by it, and shall not
be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountant or expert. The
Collateral Agent may rely conclusively on advice from the Administrative Agent as to whether at any time (i) an Event of Default
under the Credit Agreement has occurred and is continuing, (ii) the maturity of the Loans has been accelerated or (iii) any proposed
action is permitted or required by the Credit Agreement.

 

    25 

     

    

 

(f)           
Sub-Agents and Related Parties. The Collateral Agent may perform any of its duties and exercise any of its rights
and powers through one or more sub-agents appointed by it. The Collateral Agent and any such sub-agent may perform any of its duties
and exercise any of its rights and powers through its Related Parties. The exculpatory provisions of Section 10 and this Section
shall apply to any such sub-agent and to the Related Parties of the Collateral Agent and any such sub-agent.

 

(g)           
Information as to Secured Obligations and Actions by Secured Parties. For all purposes of the Security Documents,
including determining the amounts of the Secured Obligations and whether a Secured Obligation is an Unliquidated Secured Obligation
or not, or whether any action has been taken under any Secured Agreement, the Collateral Agent will be entitled to rely on information
from (i) the Administrative Agent for information as to the Lenders, the Administrative Agent or the Collateral Agent, their Secured
Obligations and actions taken by them, (ii) any Secured Party for information as to its Secured Obligations and actions taken by
it, to the extent that the Collateral Agent has not obtained such information from the foregoing sources, and (iii) the Borrower
or any Lien Grantor, to the extent that the Collateral Agent has not obtained information from the foregoing sources.

 

(h)            Within
two Business Days after it receives or sends any notice referred to in this subsection, the Collateral Agent shall send to
the Administrative Agent and each Secured Party requesting notice thereof, copies of any notice given by the Collateral Agent
to any Lien Grantor, or received by it from any Lien Grantor; provided that such Secured Party has, at least
five Business Days prior thereto, delivered to the Collateral Agent a written notice (i) stating that it holds one or more
Secured Obligations and wishes to receive copies of such notices and (ii) setting forth its address, facsimile number and
e-mail address to which copies of such notices should be sent.

 

(i)            
The Collateral Agent may refuse to act on any notice, consent, direction or instruction from the Administrative Agent or
any Secured Parties or any agent, trustee or similar representative thereof that, in the Collateral Agent’s opinion, (i)
is contrary to law or the provisions of any Security Document, (ii) may expose the Collateral Agent to liability (unless the Collateral
Agent shall have been indemnified, to its reasonable satisfaction, for such liability by the Secured Parties that gave, or instructed
the Agent to give, such notice, consent, direction or instruction) or (iii) is unduly prejudicial to Secured Parties not joining
in such notice, consent, direction or instruction.

 

    26 

     

    

 

(j)            
Resignation; Successor Collateral Agent. Subject to the appointment and acceptance of a successor Collateral Agent
as provided in this subsection, the Collateral Agent may resign at any time by notifying the Secured Parties and the Borrower.
Upon any such resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor
Collateral Agent. If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Collateral Agent gives notice of its resignation, then the retiring Collateral Agent may, on
behalf of the Secured Parties, appoint a successor Collateral Agent which shall be a bank with an office in the United States,
or an Affiliate of any such bank. Upon acceptance of its appointment as Collateral Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent hereunder,
and the retiring Collateral Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Lien Grantors
to a successor Collateral Agent shall be the same as those payable to its predecessor unless otherwise agreed by the Lien Grantors
and such successor. After the Collateral Agent’s resignation hereunder, the provisions of this Section and Section 10 shall
continue in effect for the benefit of such retiring Collateral Agent, its sub-agents and their respective Related Parties in respect
of any actions taken or omitted to be taken by any of them while the retiring Collateral Agent was acting as Collateral Agent.

 

Section
12. Termination of Transaction Liens; Release of Collateral.

 

(a)           
The Transaction Liens shall terminate when all the Release Conditions are satisfied.

 

(b)            The
Transaction Liens (x) with respect to any Pledged Receivables shall terminate when such Receivables have become
Transferred Receivables and (y) with respect to any other Collateral shall terminate upon the sale of such Collateral to a
Person other than a Credit Party in a transaction not prohibited by the Credit Agreement. In each case, such termination
shall not require the consent of any Secured Party, and the Collateral Agent and any third party shall be fully protected in
relying on a certificate of the Borrower as to whether any Pledged Receivables qualify as Transferred Receivables (including
whether the transfer thereof is permitted under the Credit Agreement and this Agreement).

 

(c)           
If the Borrower delivers a certificate pursuant to Section 12(b) stating that any Pledged Receivables qualify as Transferred
Receivables, the Collateral Agent and any third party shall be fully protected in relying on such certificate as conclusive proof
that the Transferred Receivables are not Collateral.

 

    27 

     

    

 

(d)           
At any time before the Transaction Liens terminate, the Collateral Agent may, at the written request of the Borrower, (i)
release any Collateral (but not all or substantially all of the Collateral) with the prior written consent of the Required Lenders
or (ii) release all or substantially all of the Collateral with the prior written consent of all the Lenders.

 

(e)           
Upon any termination of a Transaction Lien or release of Collateral, the Collateral Agent will, at the expense of the applicable
Lien Grantor, execute and deliver to such Lien Grantor such documents as such Lien Grantor shall reasonably request to evidence
the termination of such Transaction Lien or the release of such Collateral, as the case may be. Each Secured Party consents to
the Collateral Agent’s delivery of, and hereby directs the Collateral Agent to deliver, such release documents.

 

Section
13. Notices. Each notice, request or other communication given to any party hereunder shall be in writing and be
sent to the following addresses:

 

(a)           
in the case of any Lien Grantor, to it in care of the Borrower:

 

United States Steel Corporation

600 Grant Street, Room 1874

Pittsburgh, Pennsylvania 15219|

Attention: Manager – Corporate Finance

Facsimile: (412) 433-2222

 

(b)           
in the case of the Collateral Agent:

 

JPMorgan Chase & Co.

CIB DMO WLO,

Mail code NY1-C413,

4 CMC, Brooklyn, NY, 11245-0001,

United States

Email: ib.collateral.services@jpmchase.com

 

    28 

     

    

 

with a copy to:

 

J.P. Morgan Chase Bank, N.A.

383 Madison Avenue, FL 24

New York, New York 10179

Attention: Peter Predun

Facsimile: (212) 270-5100

E-mail: peter.predun@jpmorgan.com

 

J.P. Morgan Chase Bank, N.A.

383 Madison Avenue, FL 24

New York, New York 10179

Attention: Anna Filipovich

E-mail: anna.filipovich@jpmorgan.com

 

(c)           
in the case of any Lender, to the Collateral Agent to be forwarded to such Lender at its address or facsimile number specified
in or pursuant to Section 9.01 of the Credit Agreement; or

 

(d)           
in the case of any Secured Party requesting notice under Section 11(h), such address, facsimile number, or e-mail address
as such party may hereafter specify for the purpose by notice to the Collateral Agent.

 

All notices and other communications given to any party hereto
in accordance with the terms of this Agreement shall be deemed to have been given on the date of receipt. Any party may change
its address, facsimile number and/or e-mail address for purposes of this Section by giving notice of such change to the Collateral
Agent and each Lien Grantor in the manner specified in this Section 13.

 

Section
14. No Implied Waivers; Remedies Not Exclusive. No failure by the Collateral Agent or any Secured Party to exercise,
and no delay in exercising and no course of dealing with respect to, any right or remedy under any Related Document shall operate
as a waiver thereof; nor shall any single or partial exercise by the Collateral Agent or any Secured Party of any right or remedy
under any Related Document preclude any other or further exercise thereof or the exercise of any other right or remedy. The rights
and remedies specified in the Related Documents are cumulative and are not exclusive of any other rights or remedies provided by
law.

 

Section
15. Successors and Assigns. This Agreement is for the benefit of the Collateral Agent and the Secured Parties.
If all or any part of any Secured Party’s interest in any Secured Obligation is assigned or otherwise transferred, the
transferor’s rights hereunder, to the extent applicable to the obligation so transferred, shall be automatically
transferred with such obligation. This Agreement shall be binding on each Lien Grantor and its successors and assigns.

 

    29 

     

    

 

Section
16. Amendments and Waivers. Neither this Agreement nor any provision hereof may be waived, amended, modified or terminated
except pursuant to an agreement or agreements in writing entered into by the parties hereto, with the consent of such Lenders and/or
Agents as are required to consent thereto under Section 9.02(b) of the Credit Agreement.

 

Section
17. Choice of Law. This Agreement shall be construed in accordance with and governed by the laws of the State of
New York, except as otherwise required by mandatory provisions of law and except to the extent that remedies provided by the laws
of any jurisdiction other than the State of New York are governed by the laws of such jurisdiction.

 

Section
18. WAIVER OF JURY TRIAL. EACH PARTY HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO ANY SECURITY DOCUMENT
OR ANY TRANSACTION CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE CASE OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

Section
19. Severability. If any provision of any Security Document is invalid or unenforceable in any jurisdiction, then,
to the fullest extent permitted by law, (i) the other provisions of the Security Documents shall remain in full force and effect
in such jurisdiction and shall be liberally construed in favor of the Collateral Agent and the Secured Parties in order to carry
out the intentions of the parties thereto as nearly as may be possible and (ii) the invalidity or unenforceability of such provision
in such jurisdiction shall not affect the validity or enforceability thereof in any other jurisdiction.

 

Section
20. Amendment and Restatement; Confirmation of Guarantee.

 

(a)            This
Agreement amends and restates the Existing Subsidiary Security Agreement. All liens, claims, rights, titles, interests and
benefits created and granted by the Existing Subsidiary Security Agreement shall continue to exist, remain valid and
subsisting, shall not be impaired or released hereby, shall remain in full force and effect and are hereby affirmed, renewed,
extended, carried forward and conveyed as security for the Secured Obligations.

 

    30

     

    

  

(b)           
The Guarantors acknowledge and agree that this Agreement and all documents executed in connection herewith do not operate
to reduce or discharge the Guarantors’ obligations under the Loan Documents. Each Guarantor hereby (i) ratifies and confirms
its covenants and obligations under each Loan Document to which it is a party, including, without limitation, its continuing unconditional
Guarantee of the Secured Obligations pursuant to the applicable Subsidiary Guarantee Agreement, and (ii) acknowledges and agrees
that each Loan Document, including, without limitation, the applicable Subsidiary Guarantee Agreement, to which it is a party shall
remain in full force and effect.

 

Section
21. Additional Guarantors. Upon execution and delivery of a Joinder Agreement by the Collateral Agent and any Domestic
Subsidiary that the Borrower elects to cause to become a Subsidiary Guarantor by fulfilling the Collateral and Guarantee Requirement
under the Credit Agreement, such Domestic Subsidiary shall become a Guarantor hereunder with the same force and effect as if originally
named as a Guarantor herein. The rights and obligations of each party to this Agreement shall remain in full force and effect notwithstanding
the addition of any new party to this Agreement.

 

[Signature pages follow]

 

    31

     

    

 

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

 

	 	U.S. STEEL SEAMLESS TUBULAR OPERATIONS, LLC
	 	 
	 	By:	/s/ Arne Jahn
	 	 	Name:	Arne Jahn
	 	 	Title:	Treasurer

 

 

	 	UNITED STATES STEEL INTERNATIONAL, INC.
	 	 
	 	By:	/s/ Arne Jahn
	 	 	Name:	Arne Jahn
	 	 	Title:	Treasurer

 

 

	 	U.S. STEEL OILWELL SERVICES, LLC
	 	 
	 	By:	/s/ Arne Jahn
	 	 	Name:	Arne Jahn
	 	 	Title:	Treasurer

 

 

	 	U.S. STEEL TUBULAR PRODUCTS, INC.
	 	 
	 	By:	/s/ Arne Jahn
	 	 	Name:	Arne Jahn
	 	 	Title:	Treasurer

 

[Signature Page to Subsidiary Security Agreement]

 

     

     

    

 

	 	JPMORGAN CHASE BANK, N.A.,
 as Collateral Agent
	 	 
	 	By:	/s/ James Shender
	 	 	Name:	James Shender
	 	 	Title:	Vice President

 

[Signature Page to Subsidiary Security Agreement]

 

     

     

    

 

EXHIBIT A

to Subsidiary Security Agreement

 

PERFECTION CERTIFICATE

 

[The][Each] undersigned is a duly authorized
officer of [the][each] Lien Grantor identified in paragraph 1 below (the “Lien Grantors”) and set forth above
its name on the signature page hereto. With reference to the Second Amended and Restated Subsidiary Security Agreement dated as
of October 25, 2019 among the Lien Grantors and JPMorgan Chase Bank, N.A., as Collateral Agent (terms defined therein being used
herein as therein defined), [the][each] undersigned certifies to the Collateral Agent and each other Secured Party as follows:

 

Information Required for Filings and Searches for Prior
Filings.

 

1.       Name
and Jurisdiction of Organization. (a) The exact name as it appears in its certificate of incorporation, certificate of
formation or other equivalent organizational document, (b) the type of entity and (c) the jurisdiction of organization
of each Lien Grantor is:

 

	Lien Grantor	Type of Entity	Jurisdiction of Organization
	 	 	 
	 	 	 

 

2.       Prior
Names. (a) The following constitute each other corporate (or other organizational) name that each Lien Grantor has had within
the past five years, together with the date of the relevant change:

 

	Lien Grantor	Prior Name
	 	 
	 	 

  

     

     

    

 

(b)       Except
as hereinafter set forth, each Lien Grantor has not changed its organizational structure.1

 

	Lien Grantor	Description
	 	 
	 	 

 

(c)       Except
as hereinafter set forth, each Lien Grantor has not changed its jurisdiction of organization.

 

	Lien Grantor	Prior Jurisdiction of Organization
	 	 
	 	 

 

 

4.       Location
of Debtor. (a) Each Lien Grantor’s principal place of business is:2

 

	Lien Grantor	Principal Place of Business
	 	 
	 	 

 

 

(b) Except as hereinafter set forth,
each Lien Grantor has not changed its principal place of business in the last five years.

 

 

 

1       Changes
in organizational structure include mergers and consolidations, as well as any change in a Lien Grantor’s form of organization.
If any such change has occurred, include in the table below the information required by paragraphs 1 through 5 of this certificate
as to each constituent party to a merger or consolidation and any other predecessor organization.

 

2       Insert
Lien Grantor’s “location” determined as provided in UCC Section 9-307.

 

     

     

    

 

 

	Lien Grantor	Prior Principal Place of Business
	 	 
	 	 

 

 

5.       Organizational
and Federal Taxpayer Identification Numbers. Set forth below is (a) the organization identification number, if any, assigned
by the jurisdiction of organization of each Lien Grantor and (b) the U.S. federal taxpayer identification number of each Lien Grantor.

 

	Lien Grantor	Organizational Identification No.	U.S. Federal Taxpayer Identification No.
	 	 	 
	 	 	 

  

     

     

    

  

IN WITNESS WHEREOF, I have hereunto set
my hand this __ day of __________, ____.

  

	 	[LIEN GRANTOR]
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

  

[Signature Page to Perfection Certificate]

 

     

     

    

   

Schedule I

to Perfection Certificate

 

DESCRIPTION OF COLLATERAL

 

All Inventory, Receivables, Contracts, Blocked
Accounts, all Collection Accounts, all Lockbox Accounts and the Cash Collateral Account, and all cash, cash equivalents or other
assets on deposit therein or credited thereto, and all books and records (including customer lists, credit files, computer programs,
printouts and other computer material and records) pertaining to the foregoing, all General Intangibles, Documents, Instruments,
Chattel Paper and insurance proceeds pertaining to the foregoing, in each case whether now owned or hereafter acquired and wherever
located, and all Proceeds thereof, but excluding all Transferred Receivables (as each such term is defined on Exhibit A attached
hereto).*

 

*Form of Exhibit A to UCC-1 Financing
Statements is attached hereto.

 

     

     

    

 

Exhibit A to UCC-1 Financing Statement

 

	Debtor:

U. S. Steel Seamless Tubular Operations, LLC

460 Wildwood Forest Drive,

Suite 300S

Spring, TX 77380	Secured Party:

JPMorgan Chase Bank, N.A.,

as Collateral Agent

500 Stanton Christiana Road

Ops 2 Floor 3

Newark, Delaware 19713-2107

 

Capitalized terms used in the description
of collateral set forth on the face of the UCC-1 Financing Statement to which this Exhibit A pertains shall have the following
meanings: 

 

“Accounts” has the meaning
specified in Section 9-102 of the UCC.

 

“Blocked Accounts” means
any lockbox, deposit, collection or similar account of the Debtor which is or becomes subject to a “Blocked Account Agreement”
pursuant to the Subsidiary Security Agreement.

 

“Cash Collateral Account”
means an account in the name and under the exclusive control of the Collateral Agent, into which all amounts owned by the Debtor
that are required to be deposited pursuant to the Credit Agreement and related documents are deposited from time to time.

 

“Chattel Paper” has the
meaning specified in Section 9-102 of the UCC.

 

“Collateral Agent” means
JPMorgan Chase Bank, N.A., in its capacity as collateral agent under the Subsidiary Security Agreement and related documents, and
its successors in such capacity.

 

“Collection Account”
means each deposit account established by the Debtor into which collections on Receivables are deposited or into which amounts
collected in any Lockbox Account are transferred.

 

“Contracts” means all
General Intangibles related to the sale, lease, exchange, or other disposition of Inventory, whether or not performed and whether
or not subject to termination upon a contingency or at the option of any party thereto.

 

“Credit Agreement” means
the Fourth Amended and Restated Credit Agreement dated as of February 26, 2018 among the United States Steel Corporation, the Lenders
party thereto, the LC Issuing Banks party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent.

 

“Document” has the meaning
specified in Section 9-102 of the UCC.

 

     

     

    

 

“Eligible Transferee”
means any Person which is not a Subsidiary of the Borrower that purchases, or receives as collateral, Receivables from any Credit
Party in connection with a Permitted Supply Chain Financing.

 

“General Intangibles”
has the meaning specified in Section 9-102 of the UCC.

 

“Instrument” has the
meaning specified in Section 9-102 of the UCC.

 

“Inventory” has the meaning
specified in Section 9-102 of the UCC.

 

“Lockbox Accounts” means
each lockbox account established by the Debtor into which collections on Receivables are deposited.

 

“Permitted Supply Chain Financing”
means any supply chain financing or other factoring transaction whereby the Receivables payable by a particular customer of the
Debtor are sold or pledged as collateral by the Debtor to a third-party financing source on a basis that is non-recourse to the
Debtor.

 

“Proceeds” means all
proceeds of, and all other profits, products, rents or receipts, in whatever form, arising from the collection, sale, lease, exchange,
assignment, licensing or other disposition of, or other realization upon, any Collateral, including all claims of the Debtor against
third parties for loss of, damage to or destruction of, or for proceeds payable under, or unearned premiums with respect to, policies
of insurance in respect of, any Collateral, and any condemnation or requisition payments with respect to any Collateral.

 

“Receivables” means,
with respect to the Debtor, all Accounts owned by it and all other rights, titles or interests which, in accordance with generally
accepted accounting principles in the United States of America, would be included in receivables on its balance sheet (including
any such Accounts and/or rights, titles or interests that might be characterized as Chattel Paper, Instruments or General Intangibles
under the UCC), in each case arising from the sale, lease, exchange or other disposition of Inventory, and all of the Debtor’s
rights to any goods, services or other property related to any of the foregoing (including returned or repossessed goods and unpaid
seller’s rights of rescission, replevin, reclamation and rights to stoppage in transit), and all collateral security and
supporting obligations of any kind given by any person with respect to any of the foregoing.

 

“Subsidiary Security Agreement”
means the Amended and Restated Subsidiary Security Agreement dated as of February 26, 2018 among the Debtor, the other guarantors
from time to time party thereto and the Collateral Agent.

 

“Transferred
Receivables” means any Receivables that have been sold, contributed or otherwise transferred by the Debtor to an
Eligible Transferee in connection with a Permitted Supply Chain Financing that is permitted under the Credit Agreement.

 

“UCC” means the Uniform
Commercial Code as in effect from time to time in the State of New York; provided that, if perfection or the effect of perfection
or non-perfection or the priority of any security interest in any collateral is governed by the Uniform Commercial Code as in effect
in a jurisdiction other than New York, “UCC” means the Uniform Commercial Code as in effect from time to time in such
other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or
priority.

 

     

     

    

 

EXHIBIT B

to Subsidiary Security Agreement

 

FORM OF SUBSIDIARY SECURITY AGREEMENT
JOINDER

 

JOINDER, dated as of
[●] (this “Joinder Agreement”), to the Second Amended and Restated Subsidiary Security Agreement, dated
as of October 25, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Subsidiary
Security Agreement”), among the Guarantors and JPMorgan Chase Bank, N.A., as Collateral Agent.

 

A.               
Reference is made to that certain Fifth Amended and Restated Credit Agreement dated as of October 25, 2019 (as amended,
restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”)
among United States Steel Corporation, as the Borrower, the Lenders party thereto, the LC Issuing Banks party thereto and JPMorgan
Chase Bank, N.A., as Administrative Agent and Collateral Agent.

 

B.                
Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit
Agreement or the Subsidiary Security Agreement, as applicable.

 

C.                
[The][Each] undersigned Domestic Subsidiary ([each a][the] “New Lien Grantor”) is executing this Joinder
Agreement in accordance with Section 21 of the Subsidiary Security Agreement and the Collateral and Guarantee Requirement
under the Credit Agreement.

 

Accordingly, the Collateral
Agent and [each][the] New Lien Grantor agree as follows:

 

SECTION
1.          In
accordance with Section 21 of the Subsidiary Security Agreement, [the][each] New Lien Grantor by its signature below becomes
a Lien Grantor under the Subsidiary Security Agreement with the same force and effect as if originally named therein as a
Lien Grantor, and [the][each] New Lien Grantor hereby (a) agrees to all the terms and provisions of the Subsidiary Security
Agreement applicable to it as a Lien Grantor thereunder and (b) represents and warrants as of the date hereof that the
applicable representations and warranties made by it as a Lien Grantor thereunder on the date hereof that are qualified as to
materiality are true and correct in all respects on and as of the date hereof and those that are not so qualified are true
and correct in all material respects on and as of the date hereof; it being understood and agreed that any representation or
warranty that expressly relates to an earlier date shall be deemed to refer to the date hereof. In furtherance of the
foregoing, [the][each] New Lien Grantor grants to the Collateral Agent for the benefit of the Secured Parties a continuing
security interest in all the property of such Lien Grantor described in Section 2 of the Subsidiary Security Agreement,
whether now owned or existing or hereafter acquired or arising and regardless of where located, subject to the exceptions set
forth in Section 2(b) of the Subsidiary Security Agreement. Upon the effectiveness of this Joinder Agreement, each reference
to a “Lien Grantor” in the Subsidiary Security Agreement shall be deemed to include [the][each] New Lien Grantor.
The Subsidiary Security Agreement is hereby incorporated herein by reference.

 

     

     

    

 

SECTION
2.          [The][Each]
New Lien Grantor represents and warrants to the Collateral Agent and the other Secured Parties that this Joinder Agreement has
been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against
it in accordance with its terms.

 

SECTION
3.          This
Joinder Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract. This Joinder Agreement shall become
effective when the Collateral Agent shall have received a counterpart of this Joinder Agreement that bears the signature of [the][each]
New Lien Grantor and the Collateral Agent has executed a counterpart hereof. Delivery of an executed signature page to this Joinder
Agreement by facsimile transmission or by email as a “.pdf” or “.tiff” attachment shall be effective as
delivery of a manually signed counterpart of this Joinder Agreement.

 

SECTION
4.          Attached
hereto is a duly prepared, completed and executed Perfection Certificate with respect to [the][each] New Lien Grantor, and [the][each]
New Lien Grantor hereby represents and warrants that the information set forth therein is correct and complete in all material
respects as of the date hereof.

 

SECTION
5.          Except
as expressly supplemented hereby, the Subsidiary Security Agreement shall remain in full force and effect.

 

SECTION
6.          THIS
JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION
7.          In
case any one or more of the provisions contained in this Joinder Agreement is invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained herein and in the Subsidiary Security Agreement
shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular
jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties hereto shall
endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

     

     

    

 

SECTION 8.         
All communications and notices hereunder shall be in writing and given as provided in Section 13 of the Subsidiary Security
Agreement.

 

SECTION
9.          [The][Each]
New Lien Grantor agrees to reimburse the Collateral Agent for its reasonable and documented expenses in connection with this Joinder
Agreement, including the fees, other charges and disbursements of counsel in accordance with Section 8(a) of the Subsidiary Security
Agreement and/or Section 9.03(a) of the Credit Agreement.

 

SECTION
10.      This Joinder Agreement
shall constitute a Loan Document and a Security Document, under and as defined in, the Credit Agreement.

 

[Signature pages follow]

 

     

     

    

 

IN WITNESS WHEREOF, [the][each] New Lien
Grantor has duly executed this Joinder Agreement to the Subsidiary Security Agreement as of the day and year first above written.

 

	 	[NEW LIEN GRANTOR]
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

[Signature Page to Joinder Agreement]

 

     

     

    

 

	 	JPMORGAN CHASE BANK, N.A.,
 as Collateral Agent
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

[Signature Page to Joinder Agreement]

 

     

     

    

 

Schedule I

to Subsidiary Security Agreement

 

Lockbox Accounts and Collection Accounts

 

	Name on Account	Account Number	Account TypeExhibit 10.4

 

Execution Copy

 

 

AGREEMENT
OF SALE

 

between

 

THE INDUSTRIAL DEVELOPMENT BOARD

OF THE CITY OF HOOVER (ALABAMA)

as Issuer

 

and

 

UNITED STATES STEEL CORPORATION

 

$275,000,000

The Industrial Development Board of the City of Hoover

Environmental Improvement Revenue Bonds, Series 2019

(United States Steel Corporation Project)

  

Dated as of October 1, 2019

 

 

 

     

     

    

 

Table
of Contents

 

	 	 	Page

	 	ARTICLE I	 
	 	DEFINITIONS	 
	 	 	 
	Section 1.01.	Use of Defined Terms	2
	Section 1.02.	Definitions	2
	Section 1.03.	Interpretation	5
	Section 1.04.	Captions and Headings	5
	 	 	 
	 	ARTICLE II	 
	 	REPRESENTATIONS	 
	 	 	 
	Section 2.01.	Representations and Covenants of Issuer	5
	Section 2.02.	Representations and Covenants of Company	6
	 	 	 
	 	ARTICLE III	 
	 	ISSUANCE OF BONDS; COMPLETION OF PROJECT FACILITIES; Sale of Project FACILITIES	 
	 	 	 
	Section 3.01.	Issuance of Bonds	7
	Section 3.02.	Completion of Project Facilities	7
	Section 3.03.	Use of Proceeds	7
	Section 3.04.	Investment of Fund Moneys	8
	Section 3.05.	Purchase and Sale of Project Facilities	8
	Section 3.06.	Issuer’s Fees	10
	 	 	 
	 	ARTICLE IV	 
	 	PAYMENT PROVISIONS	 
	 	 	 
	Section 4.01.	Installment Payments	10
	Section 4.02.	Additional Payments	10
	Section 4.03.	Deposit of Moneys in Bond Fund; Moneys for Purchase and Redemption	11
	Section 4.04.	Obligations Unconditional	11
	Section 4.05.	Assignment by Company	11
	Section 4.06.	Assignment by Issuer	12
	Section 4.07.	Limitation of Issuer’s Liability	12
	 	 	 
	 	ARTICLE V	 
	 	ADDITIONAL AGREEMENTS AND COVENANTS	 
	 	 	 
	Section 5.01.	Lease, Sale or Grant of Use by Company	12
	Section 5.02.	Indemnification of Issuer and Trustee	13

 

     

     

    

 

	Section 5.03.	Company Not to Adversely Affect Exclusion from Gross Income of Interest on Bonds	14
	Section 5.04.	Company to Maintain its Existence; Mergers or Consolidations	15
	Section 5.05.	Reports and Audits	15
	Section 5.06.	Insurance	15
	 	 	 
	 	ARTICLE VI	 
	 	OPTIONS; PREPAYMENT OF INSTALLMENT PAYMENTS	 
	 	 	 
	Section 6.01.	Options to Terminate	16
	Section 6.02.	Optional and Extraordinary Optional Redemption; Option to Prepay Installment Payments under Indenture	16
	Section 6.03.	Mandatory Prepayment of Installment Payments	16
	Section 6.04.	Actions by Issuer	16
	Section 6.05.	Release of Indenture in Event of Prepayment of Installment Payments	16
	 	 	 
	 	ARTICLE VII	 
	 	EVENTS OF DEFAULT AND REMEDIES	 
	 	 	 
	Section 7.01.	Events of Default	17
	Section 7.02.	Remedies on Default	17
	Section 7.03.	No Remedy Exclusive	18
	Section 7.04.	Agreement to Pay Fees and Expenses	18
	Section 7.05.	No Waiver	18
	Section 7.06.	Notice of Default	18
	 	 	 
	 	ARTICLE VIII	 
	 	MISCELLANEOUS	 
	 	 	 
	Section 8.01.	Term of Agreement	18
	Section 8.02.	Amounts Remaining in Funds	19
	Section 8.03.	Notices	19
	Section 8.04.	Extent of Covenants of Issuer; No Personal Liability	19
	Section 8.05.	Binding Effect	19
	Section 8.06.	Amendments and Supplements	19
	Section 8.07.	Execution Counterparts	19
	Section 8.08.	Severability	20
	Section 8.09.	Governing Law	20
	Section 8.10.	Further Assurances and Corrective Instruments	20
	Section 8.11.	Issuer and Company Representatives	20
	Section 8.12.	Immunity of Incorporators, Stockholders, Officers and Directors	20
	Section 8.13.	Section Headings	20
	Section 8.14.	Concerning the Trustee	20
	 	 	 
	EXHIBIT A	PROJECT FACILITIES	 
	EXHIBIT B	FORM OF DISBURSEMENT REQUEST	 
	EXHIBIT C	FORM OF COMPLETION CERTIFICATE	 

 

    ii

     

    

 

AGREEMENT
OF SALE

 

THIS AGREEMENT OF
SALE (this “Agreement”) made and entered into as of October 1, 2019, by and between THE INDUSTRIAL DEVELOPMENT
BOARD OF THE CITY OF HOOVER (ALABAMA) (the “Issuer”), a public corporation created and existing under the laws
of the State of Alabama (the “State”), acting through its duly elected board, duly organized and validly existing under
and by virtue of Act No. 648 enacted at the 1949 Regular Session of the Legislature of Alabama (Code of Alabama 1975 § 11-54-80,
et seq., as amended) (the “Act”), and UNITED STATES STEEL CORPORATION, a corporation duly organized
and existing under and pursuant to the laws of the State of Delaware, and duly qualified to own property and transact business
in the State (the “Company”), under the following circumstances summarized in the following recitals (capitalized terms
used herein and not defined in the recitals have the meanings set forth in Article I hereof or elsewhere in this Agreement):

 

W I T
N E S S E T H:

 

WHEREAS, by virtue
of the Act and pursuant to its corporate authorization, the Issuer is authorized to enter into this Agreement and to do or cause
to be done all the acts and things herein or in the Indenture, as defined herein, provided or required to be done by it, to issue
the Bonds, as defined herein, and to apply the proceeds of the sale of such Bonds to finance or refinance the acquisition, construction,
equipping and installation of certain Project Facilities consisting of solid waste disposal facilities constituting pollution control
facilities under the Act and described in Exhibit A hereto, as Exhibit A may be amended as provided in Section 11.01 of
the hereinafter defined Indenture; and

 

WHEREAS, in order to
provide funds necessary to finance or refinance the Project Facilities, the Issuer has determined, at the request of the Company,
to issue and sell its Environmental Improvement Revenue Bonds, Series 2019 (United States Steel Corporation Project),
in the aggregate principal amount of $275,000,000 (the “Bonds”), under the Trust Indenture (the “Indenture”)
dated as of October 1, 2019, between the Issuer and The Bank of New York Mellon Trust Company, N.A., as trustee
(the “Trustee”), for the purposes described therein and herein and has determined to enter into this Agreement and
to secure the Bonds by the pledge and assignment of Installment Payments to be made by the Company hereunder; and

 

WHEREAS, the Company
also has agreed under this Agreement to pay, or cause to be paid, when due certain expenses and other costs incurred by the Issuer
and the Trustee in connection with this Agreement and the issuance of the Bonds; and

 

WHEREAS, the Bonds
are special, limited obligations of the Issuer payable solely from the Pledged Receipts, as defined in the Indenture, and neither
the principal of the Bonds, nor the interest accruing thereon, shall ever constitute a charge against the general credit of the
Issuer or an indebtedness of the City of Hoover, Alabama (the “City”), Jefferson County, Alabama (the “County”),
the State or any political subdivision thereof within the meaning of any State constitutional or statutory provision nor constitute
or give rise to a pecuniary liability of the City, the County or the State or a charge against their general credit or taxing
powers; and

 

    

     

    

 

WHEREAS, all acts and
things have been done and performed which are necessary to make the Bonds, when executed and delivered by the Issuer, the legal,
valid and binding limited obligations of the Issuer in accordance with the terms thereof.

 

NOW, THEREFORE, for
and in consideration of the premises, the respective representations and agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby mutually acknowledged, the parties hereto, recognizing that under
the Act this Agreement shall not in any way obligate the State or any agency or political subdivision thereof, including, without
limitation, the Issuer, to raise any money by taxation or use other public moneys for any purpose in relation to the Project Facilities
and that neither the City, the County, the State nor any agency or political subdivision thereof, including, without limitation,
the Issuer, shall pay or promise to pay any debt or meet any financial obligation to any Person at any time in relation to the
Project Facilities, except from moneys received or to be received under the provisions of this Agreement or derived from the exercise
of the rights of the Issuer hereunder, agree as follows:

 

ARTICLE
I

DEFINITIONS

 

Section 1.01. Use
of Defined Terms. In addition to the words and terms defined elsewhere in this Agreement, or by reference to another document,
the words and terms set forth in Section 1.02 shall have the meanings set forth therein unless the content or use clearly
indicates another meaning or intent. In addition, all capitalized terms used herein and not otherwise defined shall have the meanings
set forth in the Indenture.

 

Section 1.02. Definitions.
The following terms shall have the following meanings:

 

“Act”
means Act No. 648 enacted at the 1949 Regular Session of the Legislature of Alabama, as amended. The Act is codified
as Code of Alabama, 1975, Title 11, Chapter 54, Article 4.

 

“Additional
Payments” means payments due hereunder in addition to the Installment Payments.

 

“Agreement”
means this Agreement of Sale as amended or supplemented from time to time.

 

“Bond Purchase
Agreement” means the Bond Purchase Agreement among the Company, the Issuer and the Underwriter with respect to the Bonds.

 

“Bonds”
has the meaning set forth in the recitals to this Agreement.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time, the regulations (whether proposed, temporary or
final) under that Code or the statutory predecessor of that Code, and any amendments of, or successor provisions to, the
foregoing and any official rulings, announcements, notices, procedures and judicial determinations regarding any of the
foregoing, all as and to the extent applicable. Unless otherwise indicated, reference to a Section of the Code means that
Section of the Code, including such applicable regulations, rulings, announcements, notices, procedures and determinations
pertinent to that Section of the Code.

 

    2

     

    

 

“Completion
Certificate” means a certificate in substantially the form attached hereto as Exhibit C.

 

“Event of
Default” means any of the events described as an Event of Default in Section 7.01.

 

“Indenture”
means the Trust Indenture dated as of even date with this Agreement, between the Issuer and the Trustee, as amended or supplemented
from time to time.

 

“Installment
Payments” means the amounts required to be paid by the Company to the Trustee on behalf of the Issuer as described in,
and pursuant to, Section 4.01 on each date on which payment of principal of or interest on the Bonds is due, as installments
for the purchase price of the Project Facilities, sufficient to enable the Trustee to make such payment in full.

 

“Issuer”
means The Industrial Development Board of the City of Hoover (Alabama), a public corporation duly organized and existing under
the laws of the State of Alabama, particularly the Act.

 

“Notice Address”
means:

 

(a)           As
to the Issuer:

 

The Industrial Development Board
of the City of Hoover

Hoover City Hall

100 Municipal Lane

Hoover, AL 35216

Attention: City Clerk

Email: wendy.dickerson@hoover.alabama.gov

Facsimile No.: (205) 444-7572

 

With a copy to:

 

Phillip D. Corley, Jr.

Wallace, Jordan, Ratliff & Brandt,
LLC

800 Shades Creek Parkway, Suite
400

Homewood, AL 35209

Email: pcorley@wallacejordan.com

Telephone: (205) 874-0335

 

    3

     

    

 

(b)           As
to the Company:

 

United States Steel Corporation

600 Grant Street, 61st Floor

Pittsburgh, PA 15219-2800

Attention: Treasurer & Chief Risk Officer

Facsimile No.: (412) 433-1167

 

With a copy to the Company at:

 

United States Steel Corporation

600 Grant Street, Room 1874

Pittsburgh, PA 15219-2800

Attention: Manager – Corporate Finance

Facsimile No.: (412) 433-2222

 

(c)           As
to the Trustee:

 

The Bank of New York Mellon Trust
Company, N.A.

500 Ross Street, 12th Floor

Pittsburgh, PA 15262

Attention: Corporate Trust Administration

Facsimile No.: (412) 236-0870

 

or such additional or different address,
notice of which is given under Section 8.03.

 

“Permitted
Encumbrances” means as of any particular time, (i) liens for taxes not then delinquent, (ii) liens created
by this Agreement and the Indenture, (iii) utility, access and other easements and rights of way, restrictions and exceptions
that, in the opinion of the Company, will not materially interfere with or impair the Project Facilities or the operation thereof,
(iv) any mechanic's, laborer's, materialman's, supplier's or vendor's lien or right in respect thereof if payment, not yet
due and payable, is being contested in good faith or if such lien or right does not materially adversely affect the operation of
the Project Facilities, (v) defects, irregularities, encumbrances, easements, rights of way and clouds on title (including
zoning and other similar restrictions and regulations) which do not, in the opinion of the Company, materially impair the Project
Facilities, and (vi) intercompany transfers.

 

“Person”
(or words importing persons) means any individual, corporation, partnership, joint venture, association, joint-stock company,
trust, unincorporated organization or government or any agency or political subdivision thereof.

 

“Project Facilities”
means the solid waste disposal facilities constituting pollution control facilities under the Act financed with the proceeds of
the sale of the Bonds, as more fully described in Exhibit A, as Exhibit A may be amended as provided in Section 11.01 of
the Indenture.

 

“Tax Regulatory
Agreement” means the Tax Regulatory Agreement in respect of the Bonds, dated as of the date of delivery of the Bonds,
and any permitted amendments or supplements thereto.

 

    4

     

    

 

“Underwriter”
means Morgan Stanley & Co. LLC, on behalf of itself and as representative of a group of underwriters.

 

All other terms used
in this Agreement that are defined in the Indenture have the same meanings assigned to them in the Indenture unless the context
clearly requires otherwise.

 

Section 1.03. Interpretation.
Unless the context clearly indicates otherwise, the capitalized terms defined in this Article I and in the Indenture shall,
for all purposes of this Agreement and all agreements supplemental hereto, have the meanings hereby ascribed to them. Such terms,
together with all other provisions of this Agreement, shall be read and understood in a manner consistent with the provisions of
the Act. Words or phrases importing the masculine gender shall be read and understood to include the feminine and neuter genders
and those importing number shall include singular or plural, both as appropriate to the context.

 

Any reference herein
to the Issuer, to its board or to officers thereof, includes entities or officials succeeding to their respective functions, duties
or responsibilities pursuant to or by operation of law or lawfully performing their functions.

 

Any reference to a
section, provision or chapter of the laws of the State or to any statute of the United States of America includes that section,
provision or chapter or statute as amended, modified, revised, supplemented or superseded from time to time; provided, that no
such amendment, modification or similar change shall apply solely by reason of this provision, if it constitutes in any way an
impairment of the rights or obligations of the Issuer, the Bondholders, the Trustee or the Company under this Agreement.

 

Section 1.04. Captions
and Headings. The captions and headings in this Agreement are solely for convenience of reference and in no way define, limit
or describe the scope or intent of any articles, sections, subsections, paragraphs, subparagraphs or clauses hereof.

 

ARTICLE
II

REPRESENTATIONS

 

Section 2.01.
Representations and Covenants of Issuer. The Issuer represents that (a) it is a public corporation of the State duly
organized and validly existing under the Constitution and laws of the State, including the Act; (b) it has duly
accomplished all conditions necessary to be accomplished by it prior to the issuance and delivery of the Bonds and the
execution and delivery of this Agreement, the Indenture and the Tax Regulatory Agreement; (c) after reasonable inquiry,
it has no knowledge that it is in violation of or in conflict with any provisions of the laws of the State which would impair
its ability to carry out its obligations contained in this Agreement, the Indenture or the Tax Regulatory Agreement;
(d) based upon information that the Project Facilities are located within 25 miles of the corporate limits of the City
and are not within the corporate limits or police jurisdiction of any other city or town of the State and as to the intended
use of the Project Facilities submitted by the Company to the Issuer, it is empowered to enter into the transactions
contemplated by this Agreement, the Indenture and the Tax Regulatory Agreement; (e) it has duly authorized the
execution, delivery and performance of this Agreement, the Indenture and the Tax Regulatory Agreement; (f) to the best
of its knowledge and belief, based upon the State volume cap application submitted by the Company, and other representations
made, information presented and testimony given by the Company, without independent verification by the Issuer, the Bonds
will further the public purposes of the Act and of the Issuer; (g) it will do all things in its power in order to
maintain its existence or assure the assumption of its obligations under this Agreement, the Indenture and the Tax Regulatory
Agreement by any successor public body; and (h) portions of the City are located within the County.

 

    5

     

    

 

Section 2.02. Representations
and Covenants of Company. The Company represents and covenants that:

 

(a)       It
is a corporation duly organized and existing under and pursuant to the laws of the State of Delaware. The Company is qualified
to do business in the State.

 

(b)       It
has full power and authority to execute, deliver and perform its obligations under this Agreement, the Tax Regulatory Agreement
and the Bond Purchase Agreement and to enter into and carry out the transactions contemplated by those documents; such execution,
delivery and performance does not, and will not, violate any provision of law applicable to the Company or the Company’s
articles of incorporation, code of regulations, bylaws or other corporate charter or similar instrument each as may be amended,
and does not, and will not, conflict with or result in a default under any agreement or instrument to which the Company is a party
or by which it is bound; this Agreement and the Tax Regulatory Agreement have, by proper action, been duly authorized, executed
and delivered by the Company and all steps necessary have been taken to constitute this Agreement and the Tax Regulatory Agreement
legal, valid and binding obligations of the Company.

 

(c)       No
approval, consent or other action by, or filing with, any governmental authority or agency is required to be obtained or accomplished
by the Company in connection with this Agreement or the Tax Regulatory Agreement that has not been obtained or accomplished, or
will not be obtained or accomplished by the date of issuance of the Bonds, the failure of which will not have a materially adverse
effect on the Company’s ability to execute, deliver and perform this Agreement or the Tax Regulatory Agreement or the transactions
contemplated herein or therein.

 

(d)       Each
of the Project Facilities will, at the time it is placed in service, be a “pollution control facility” under the Act.

 

(e)       Each
one and all of the representations and warranties of the Company contained in the Tax Regulatory Agreement, as executed and delivered
simultaneously with this Agreement, are true and correct.

 

(f)        No
part of the Project Facilities shall be located (i) more than 25 miles from the corporate limits of the City; (ii) within
the corporate limits or within the police jurisdiction of any city or town in the State; and (iii) in any county within the
State other than the County.

 

    6

     

    

 

(g)       The
Company will comply with the applicable requirements of Rule 15c2-12 as promulgated by the Securities and Exchange Commission
and recognizes that the Issuer is not an “obligated person” within the meaning of Rule 15c2-12.

 

ARTICLE
III

ISSUANCE OF BONDS; COMPLETION OF

PROJECT FACILITIES; Sale of Project FACILITIES

 

Section 3.01. Issuance
of Bonds. To provide funds to finance or refinance the costs of the acquisition, construction, equipping and installation of
the Project Facilities, upon satisfaction of the conditions set forth herein and in the Bond Resolution, the Issuer will issue,
sell and deliver the Bonds. The Bonds will be issued in accordance with and pursuant to the Indenture in the aggregate principal
amount, will bear interest at the rate or rates, will mature and will be subject to redemption as set forth therein. The Company
hereby approves the terms and conditions of the Indenture, and the Bonds, and the terms and conditions under which the Bonds will
be issued, sold and delivered.

 

Section 3.02. Completion
of Project Facilities. The Company represents that the acquisition, construction, equipping and installation of the Project
Facilities will be completed and that the proceeds of the Bonds, including any investment thereof, will be expended in accordance
with the provisions of all bond authorizations, security and tax regulatory agreements and certificates executed in respect of
the Bonds and in respect of the installation, operation and use of the Project Facilities, including the Tax Regulatory Agreement.
The Company acknowledges and agrees that there is no implied or express warranty by the Issuer that the proceeds of the Bonds will
be sufficient to pay all costs of the acquisition, construction, equipping and installation of the Project Facilities. Upon completion
of the acquisition, construction, equipping and installation of the Project Facilities, and in any event not more than 90 days
thereafter, the Company shall deliver the Completion Certificate to the Trustee.

 

Section 3.03. Use
of Proceeds. The proceeds from the sale of the Bonds shall be deposited in the Project Fund and used to finance or refinance
the costs of the acquisition, construction, equipping and installation of the Project Facilities. Each disbursement request shall
be on the form attached hereto as Exhibit B, executed by an Authorized Company Representative. Subject to the provisions
below, disbursements from the Project Fund shall be made only to reimburse or pay the Company, or any person designated by the
Company, for the following:

 

(a)       Costs
incurred directly or indirectly for or in connection with the acquisition, construction, equipping and installation of the Project
Facilities, including costs incurred in respect of the Project Facilities for preliminary planning and studies; architectural,
legal, engineering, surveying, accounting, consulting, supervisory and other services; labor, services and materials; and recording
of documents and title work;

 

(b)       Subject
to the limitations set forth in the Code, financial, legal, accounting, printing and engraving fees, charges and expenses, and
all other such fees, charges and expenses incurred in connection with the authorization, sale, issuance and delivery of the Bonds;
or

 

    7

     

    

 

(c)       Any
other costs, expenses, fees and charges properly chargeable to the cost of the acquisition, construction, equipping or installation
of the Project Facilities and that comply with the Company’s representations and warranties in Section 2.02 of this
Agreement.

 

(d)       All
moneys remaining in the Project Fund after the completion of the acquisition, construction, equipping and installation of the Project
Facilities and after payment or provision for payment thereof and all other items provided for in the preceding subsections (a)
to (c), inclusive, of this Section, shall, at the written direction of an Authorized Company Representative, be used in accordance
with Section 5.01(f) of the Indenture.

 

Section 3.04. Investment
of Fund Moneys. At the written direction of the Authorized Company Representative, any moneys held as part of the Project Fund,
the Bond Fund and the Rebate Fund shall be invested or reinvested by the Trustee in Eligible Investments. The Issuer has no right
to direct the investment of any moneys held in such Funds and the Company covenants that it will not direct the investment or reinvestment
of any moneys held in such Funds, or use or direct the use of the proceeds of the Bonds, in a manner or to such an extent that
the Bonds will constitute arbitrage bonds under Section 148 of the Code.

 

The Company shall provide
the Issuer with a certificate of an appropriate officer, employee or agent of or consultant to the Company for inclusion in the
transcript of proceedings for the Bonds, setting forth the reasonable expectations of the Company on the date of delivery of and
payment for the Bonds regarding the amount and use of the proceeds of the Bonds and the facts, estimates and circumstances on which
those expectations are based.

 

The Company agrees
that at no time shall any funds constituting gross proceeds of the Bonds be used in any manner to cause or result in a prohibited
payment under applicable regulations pertaining to, or in any other fashion as would constitute failure of compliance with, Section 148
of the Code.

 

If there is any amount
required to be paid to the United States pursuant to Section 148(f) of the Code or Section 5.03 of the Indenture,
the Company shall pay such amount to the Trustee for deposit to the Rebate Fund created under Section 5.03 of the Indenture,
who will, acting on behalf of the Company, submit the payment to the United States.

 

Section 3.05.
Purchase and Sale of Project Facilities. (a) In consideration of the issuance and sale of the Bonds, the Company hereby,
and by conveyance of even date herewith, assigns, conveys and transfers to the Issuer all of its right, title, and interest
in and to the portion of the Project Facilities to which the Company has title at the time of issuance of the Bonds. The
Company further hereby assigns, conveys and transfers to the Issuer all of its right, title and interest in and to each
discrete portion of the Project Facilities (except for portions of the Project Facilities acquired from the Issuer) as such
portion is acquired, constructed and installed in accordance with this Agreement, with the result that title to each such
portion of the Project Facilities automatically shall vest in the Issuer as the same is in the process of being acquired,
constructed and installed in accordance with this Agreement. Such transfer shall be made subject to Permitted Encumbrances.
Neither the Issuer nor the City shall be responsible or liable in any manner for any claims, losses, damages, penalties,
costs, taxes, assessments, charges or fines with respect to the acquisition, construction, installation, improvement,
operation, maintenance or ownership of the Project Facilities or any portion thereof (including any environmental issues and
matters) and the Company shall indemnify the Issuer and pay all expenses applicable to or arising therefrom as provided in
Section 5.02.

 

    8

     

    

 

(b) The Issuer does
hereby, and by conveyance of even date herewith, sell and convey to the Company and the Company does hereby purchase and reacquire
from the Issuer all of its right, title and interest in and to the portion of the Project Facilities to which the Issuer acquires
title as of the date of issuance of the Bonds. The Issuer does further hereby sell and convey to the Company, and the Company does
hereby purchase and reacquire from the Issuer, all of its right, title and interest in and to each discrete portion of the Project
Facilities as such portion is acquired, constructed and installed in accordance with this Agreement. Upon completion of such acquisition,
construction and installation of each discrete portion of the Project Facilities in accordance with this Agreement, all of the
Issuer's right, title and interest of every nature whatsoever in and to such portion of the Project Facilities automatically shall
vest irrevocably in the Company without the necessity of the execution of any conveyance by the Issuer, and such transaction shall
result in the automatic sale and delivery of such portion of the Project Facilities by the Issuer to the Company, and the vesting
of title to such portion of the Project Facilities in the Company, in consideration for the agreement of the Company to make, or
cause to be made, the Installment Payments and other payments and indemnities required under this Agreement. Such transfer shall
be made subject to Permitted Encumbrances. Upon the transfer by the Issuer to the Company of the Project Facilities, the Issuer
shall have no further right, title or interest in or to the Project Facilities. The Issuer shall execute and deliver to the Company
such deeds, assignments, bills of sale or other evidence of the transfer of its interest in the Project Facilities to be transferred
pursuant hereto as the Company may from time to time reasonably request; all at the expense of the Company, provided, however,
that irrespective of any failure to deliver such deeds, assignments, bills of sale or other evidence, the Project Facilities shall
be deemed transferred and vested as herein provided without any further act required of the Company or the Issuer. The Company
will pay all expenses applicable to or arising from said transfer of title. The Company shall be entitled to sole and exclusive
possession of the Project Facilities from the date of vesting of title thereto in the Company as herein provided. In connection
with all sales and conveyances by the Issuer to the Company of the Project Facilities hereunder, the Company acknowledges that
the Issuer makes no warranty, either express or implied, nor offers any assurances that the Project Facilities will be suitable
for the Company’s purposes or needs.

 

(c) In the event that
all of the principal of the Bonds shall be redeemed prior to scheduled maturity or become due and payable pursuant to the provisions
of the Indenture, because of the acceleration of the scheduled maturity of such Bonds for any reason, and such event should occur
prior to the vesting of title to the Project Facilities in the Company, the Issuer shall, upon redemption of such Bonds or full
payment by the Company of all Installment Payments due because of such acceleration of maturity and at the expense of the Company,
deliver to the Company such documents as will be reasonably required to convey to the Company of all of the Issuer's right, title
and interest in and to the Project Facilities or parts thereof which were acquired, constructed or improved with funds from the
proceeds from the sale and delivery of the Bonds so redeemed or paid.

 

    9

     

    

 

Section 3.06. Issuer’s
Fees. The Company will pay the Issuer’s closing fee in the amount of $50,000 and the Issuer’s counsel fee in the amount
of $65,000, including documented out-of-pocket disbursements and expenses related thereto, on the date of issuance of the Bonds.
The Company will also pay any other administrative expenses incurred in connection with the financing or refinancing of the acquisition,
construction, equipping and installation of the Project Facilities, and any such additional fees and expenses (including reasonable
and documented out-of-pocket attorney’s fees) incurred by the Issuer in connection with inquiring into, or enforcing, the
performance of the Company’s obligations hereunder, within 30 days of receipt of a statement from the Issuer requesting
payment of such amount.

 

ARTICLE
IV

PAYMENT PROVISIONS

 

Section 4.01. Installment
Payments. As and for the purchase price of the Project Facilities, on each date on which any payment of principal of or interest
on the Bonds shall become due (whether at maturity, or upon redemption or acceleration or otherwise), the Company will pay or cause
to be paid to the Trustee, for the account of the Issuer and in immediately available funds, as an installment of such purchase
price, an amount which, together with other moneys held by the Trustee under the Indenture and available therefor, will enable
the Trustee to make such payment of principal of or interest on the Bonds to the Bondholders in full in a timely manner (“Installment
Payments”).

 

In furtherance of the
foregoing, so long as any Bonds are outstanding, the Company will pay or cause to be paid all amounts required to prevent any deficiency
or default in any payment with respect to the Bonds, including any deficiency caused by an act or failure to act by the Trustee,
the Company, the Issuer or any other Person.

 

The Issuer assigns
all amounts payable under this Section by the Company to the Trustee pursuant to the Indenture for the benefit of the Bondholders.
The Company assents to such assignment. Accordingly, the Company will pay directly to the Trustee at its designated office all
payments payable by the Company pursuant to this Section.

 

Section 4.02. Additional
Payments. The Company will also pay the following upon demand after receipt of a bill therefor:

 

(a)       The
reasonable and documented out-of-pocket fees and expenses, including reasonable attorneys’ fees, of the Issuer incurred
in connection with this Agreement, the Indenture, the Tax Regulatory Agreement and the Bonds, and the making of any amendment or
supplement thereto, including, but not limited to: (i) those described in Section 3.06 (which includes the fees and expenses
associated with the initial drafting, execution and delivery of this Agreement, the Indenture, the Tax Regulatory Agreement and
the Bonds), (ii) those described in Section 7.04 and (iii) any other payments or indemnification required under
Section 5.02; and

 

(b)       The
reasonable and documented out-of-pocket fees and expenses of the Trustee under the Indenture, including reasonable
attorneys’ fees, for any services rendered by it under the Indenture, including those described in Section 7.04 in
connection with inquiring into or enforcing the performance of the Company’s obligations hereunder, and any other
payments or indemnification required under Section 5.02, such fees, expenses and payments to be paid directly to the
Trustee for its own account as and when such fees and expenses become due and payable.

 

    10

     

    

 

The Company further
agrees to pay all reasonable and documented out-of-pocket costs and expenses (including reasonable attorney’s fees
and expenses) of the Issuer and the Trustee incurred after the initial issuance of the Bonds in the preparation of any responses,
reproduction of any documentation or participation in any inquiries, investigations or audits from any Person solely or primarily
in connection with the Bonds, including without limitation, the Internal Revenue Service, the Securities Exchange Commission or
other governmental agency.

 

Section 4.03. Deposit
of Moneys in Bond Fund; Moneys for Purchase and Redemption. The Company may at any time deposit moneys in the Bond Fund, without
premium or penalty, to be held by the Trustee for application to Installment Payments not yet due and payable, and the Issuer agrees
that the Trustee shall accept such deposits when tendered by the Company. Such deposits shall be credited against the Installment
Payments, or any portion thereof, in the order of their due dates. Such deposits shall not in any way alter or suspend the obligations
of the Company under this Agreement during the term hereof as provided in Section 8.01.

 

In addition, the Company
may deliver moneys to the Trustee for use for the optional redemption of Bonds pursuant to Sections 6.01 and 6.02 and shall
deliver moneys to the Trustee for mandatory redemption of Bonds as required by Section 4.02(c) of the Indenture.

 

Section 4.04. Obligations
Unconditional. The obligations of the Company to make payments required by Sections 4.01, 4.02 and 4.03 and to perform
its other agreements contained herein shall be absolute and unconditional, and the Company shall make such payments without abatement,
diminution or deduction regardless of any cause or circumstance whatsoever, including, without limitation, damage, destruction
or condemnation of the Project Facilities (the risk of which shall be borne exclusively by the Company).

 

Section 4.05. Assignment
by Company. Rights granted to the Company under this Agreement may be assigned in whole or in part by the Company without the
necessity of obtaining the consent of the Issuer or the Trustee, subject, however, to each of the following conditions:

 

(a)       unless
waived by the Issuer or the Trustee, the Company shall notify the Issuer and the Trustee in writing of the identity of any assignee
at least 30 days prior to the effective date of such assignment;

 

(b)       no
assignment shall relieve the Company from primary liability hereunder for its obligations hereunder, and the Company shall continue
to remain primarily liable for the payment of the Installment Payments and Additional Payments and for performance and observance
of the agreements on its part herein provided to be performed and observed by it;

 

    11

     

    

 

(c)       any
assignment from the Company must retain for the Company such rights and interests as will permit it to perform its obligations
under this Agreement;

 

(d)       the
Company shall, within 30 days after execution thereof, furnish or cause to be furnished to the Issuer and the Trustee a true
and complete copy of each such assignment; and

 

(e)       any
assignment from the Company shall not materially impair fulfillment of the purposes to be accomplished by operation of the Project
Facilities as a project, the financing of which is permitted under the Act.

 

Section 4.06. Assignment
by Issuer. The Issuer will assign its rights under and interest to this Agreement (except for the Unassigned Issuer’s
Rights) to the Trustee pursuant to the Indenture as security for the payment of the Bonds. Otherwise, the Issuer will not sell,
assign or otherwise dispose of its rights under or interest in this Agreement nor create or permit to exist any lien, encumbrance
or security interest thereon.

 

Section 4.07. Limitation
of Issuer’s Liability. The Bonds are special, limited obligations of the Issuer and the Bond Service Charges thereon
shall be paid equally and ratably by the Issuer solely from the Pledged Receipts, including the Installment Payments to be made
by the Company under this Agreement. The Bonds shall never constitute A CHARGE AGAINST
THE GENERAL CREDIT OF THE ISSUER OR an indebtedness of the City, the COUNTY OR THE State or any political subdivision thereof within
the meaning of any State constitutional or statutory provision nor constitute or give rise to a pecuniary liability of the City,
THE COUNTY or the State or a charge against their general credit or taxing powers. The Bonds shall not constitute or create
any debt or liability of the City, the County or the State or any other political subdivision thereof, or a loan of the credit
of the City, the County or the State or any other political subdivision. The issuance of the Bonds shall not directly, indirectly
or contingently obligate the City, the County or the State or any political subdivision thereof to levy or to pledge any form of
taxation whatsoever therefor, or to make any appropriation for the payment thereof. The Issuer has no taxing power.

 

ARTICLE
V

ADDITIONAL AGREEMENTS AND COVENANTS

 

Section 5.01. Lease,
Sale or Grant of Use by Company. Subject to the provisions of Section 5.03, the Company may lease, sell or grant the right
to occupy and use the Project Facilities, in whole or in part, to others, provided that:

 

(a)       no
such grant, sale or lease shall relieve the Company from its obligations under this Agreement;

 

(b)       the
Company shall retain such rights and interests as will permit it to comply with its obligations under this Agreement;

 

(c)       no
such grant, sale or lease shall impair the purposes of the Act; and

 

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(d)       the
Company shall receive an Opinion of Nationally Recognized Bond Counsel to the effect that such grant, sale or lease does not have
an adverse effect upon the tax-exempt status of the interest on the Bonds.

 

Section 5.02. Indemnification
of Issuer and Trustee. The Company will indemnify and hold the Issuer and its members, directors, officers, elected officials,
employees, agents and representatives free and harmless from, and will indemnify and hold the Trustee and its officers, employees
and agents free and harmless from, any loss, claim, damage, tax, penalty, liability, disbursement, litigation expenses, attorneys’
fees and expenses or court costs arising out of, or in any way relating to, the execution or performance of the Indenture, this
Agreement, the Bond Purchase Agreement or any other documents in connection therewith, or any other cause and/or matter whatsoever
pertaining to the Project Facilities (including without limitation any loss, claim, damage, tax penalty, liability, disbursement,
litigation expenses, attorneys’ fees and expenses or court costs asserted or arising under any federal, state or local statute,
law, ordinance, code, rule, regulation, order or decree regulating or relating to or imposing liability or standards of conduct
concerning any hazardous, toxic or dangerous waste, substance or material), or the Bonds, including the issuance or sale of the
Bonds, or the failure to issue or sell the Bonds, actions taken under the Bonds, the Indenture, this Agreement, the Bond Purchase
Agreement or any other documents in connection therewith or any other cause whatsoever pertaining to the Project Facilities, except
in any case as a result of the gross negligence or willful misconduct of the Issuer or any Issuer indemnified party or as a result
of the negligence or willful misconduct of the Trustee or any Trustee indemnified party.

 

The Company may, at
its cost and in its name or in the name of the Issuer or the Trustee, as the case may be, prosecute or take any other action involving
third persons which the Company deems necessary in order to ensure or protect the Company’s rights under this Agreement;
in such event, the Issuer or the Trustee, as the case may be, will reasonably cooperate with the Company, but at the sole expense
of the Company.

 

In case any
actions or proceedings are brought against the Issuer or the Trustee in respect of which indemnity may be sought hereunder,
the party seeking indemnity shall promptly (but in any event within 15 days of receipt of service by such party) give
notice of that action or proceeding to the Company enclosing copies of all papers served, and the Company, upon receipt of
that notice, shall have the obligation and the right to assume the defense of the action or proceeding; provided, that
failure of a party to give that notice shall not relieve the Company from any of its obligations under this Section unless
that failure materially prejudices the defense of the action or proceeding by the Company. Any such indemnified party shall
have the right to employ separate counsel in any such action or proceeding and participate in the defense thereof, but the
fees and expenses of such counsel shall be at the expense of such indemnified party, unless: (i) the employment of such
counsel has been specifically authorized by the Company, or (ii) the parties to any such action or proceeding include
both the indemnified party and the Company and representation of both the indemnified party and the Company would not be
appropriate due to actual or potential conflicts of interest, as determined in good faith by the Company. The Company shall
not be liable for any settlement of any such action or proceeding effected without its written consent (which shall not be
unreasonably withheld or delayed), but if settled with the consent of the Company, or if there be a final judgment for the
plaintiff in any such action, the Company agrees to indemnify and hold harmless any such indemnified party from and against
any loss or liability by reason of such settlement or judgment.

 

    13

     

    

 

Notwithstanding anything
contained herein to the contrary, the Company shall not be obligated to indemnify or hold harmless the Issuer or its members, directors,
officers, elected officials, employees, agents and representatives for their gross negligence or willful misconduct, nor shall
the Company be obligated to indemnify or hold harmless the Trustee or its officers, employees and agents for their negligence or
willful misconduct.

 

The foregoing indemnification
of the Issuer is intended to be interpreted broadly and shall include its members, directors, officers, elected officials, employees,
agents and representatives, shall be enforceable by the Issuer to the full extent permitted by law, shall survive beyond the termination
or discharge of the Indenture or payment of the Bonds and the limitation on indemnification described above with respect to the
gross negligence or willful misconduct of the Issuer or any Issuer indemnified party shall apply only in cases in which any loss,
claim, damage, tax, penalty, liability, disbursement, litigation expense, attorneys’ fee or expenses or court cost of the
Issuer or any such Issuer indemnified party is adjudicated to have resulted from the gross negligence or willful misconduct of
the Issuer or such Issuer indemnified party.

 

The foregoing indemnification
of the Trustee is intended to and shall include its officers, employees and agents, shall be enforceable by the Trustee to the
full extent permitted by law, and shall survive beyond the termination or discharge of the Indenture or payment of the Bonds.

 

Section 5.03. Company
Not to Adversely Affect Exclusion from Gross Income of Interest on Bonds. The Company hereby represents that it has taken and
caused to be taken, and covenants that it will take and cause to be taken, all actions that may be required of it, alone or in
conjunction with the Issuer, for the interest on the Bonds to be and to remain excludable from gross income for federal income
tax purposes, and represents that it has not taken or permitted to be taken on its behalf, and covenants that it will not take
or permit to be taken on its behalf, any action that would adversely affect such excludability under the provisions of the Code.

 

The Company also covenants
that it will restrict the investment and reinvestment and the use of the proceeds of the Bonds in such manner and to such extent,
if any, as may be necessary so that the Bonds will not constitute arbitrage bonds under Section 148 of the Code.

 

The Company hereby
covenants that on or before the 90th day following the date any of the Project Facilities are no longer being operated
as qualifying exempt facilities under the Code (unless such facilities have simply ceased to be operated), or such later date as
provided in the Indenture, the Company shall cause a related amount of Bonds to be redeemed pursuant to the Extraordinary Mandatory
Redemption provision of the Bonds as provided in Section 4.02(c) of the Indenture.

 

    14

     

    

 

Section 5.04. Company
to Maintain its Existence; Mergers or Consolidations. The Company covenants that it will not merge or consolidate with any
other legal entity or sell or convey all or substantially all of its assets to any other legal entity, except that the Company
may merge or consolidate with, or sell or convey all or substantially all of its assets to any other legal entity, provided that
(a) the Company shall be the continuing legal entity or the successor legal entity (if other than the Company) shall be a
legal entity organized and existing under the laws of the United States of America or a state thereof, qualified to do business
in the State, and such legal entity shall expressly assume the due and punctual payment of the Installment Payments and the Additional
Payments hereunder in order to ensure timely and proper payment of the principal of and interest on all the Bonds, according to
their tenor, and the due and punctual performance and observance of all the covenants and conditions of this Agreement to be performed
by the Company (an “Assumption Agreement”) and (b) the Company or such successor legal entity, as the
case may be, shall not, immediately after such merger or consolidation, or such sale or conveyance, be in default in the performance
of any such covenant or condition and no event which with the lapse of time, the giving of notice or both would constitute an
Event of Default under Section 7.01 shall have occurred and be continuing.

 

The Company shall,
within 30 days after the execution of an Assumption Agreement, furnish to the Issuer and the Trustee an executed copy of such Assumption
Agreement and appropriate documentation demonstrating that the successor legal entity (if other than the Company) is organized
and existing under the laws of the United States of America or a state thereof and is qualified to do business in the State.

 

In the case of any
such consolidation, merger, sale or conveyance and upon the assumption by the successor legal entity of the obligations under this
Agreement and on the Bonds in accordance with the foregoing, such successor legal entity shall succeed to and be substituted for
the Company, with the same effect as if it had been named herein as a party hereto, and the Company shall thereupon be relieved
of any further obligations or liabilities hereunder and upon the Bonds and the Company as the predecessor legal entity may thereupon
or at any time thereafter be dissolved, wound-up or liquidated.

 

Section 5.05. Reports
and Audits. The Company shall as soon as practicable but in no event later than six months after the end of each of its fiscal
years, file with the Trustee and the Issuer, audited financial statements of the Company prepared as of the end of such fiscal
year; provided that the Company may satisfy this requirement by its filing of such information with the Securities and Exchange
Commission (www.sec.gov) and the Municipal Securities Rulemaking Board (emma.msrb.org) in accordance with their respective filing
requirements. Notwithstanding the above provisions of this Section, the Company shall provide a written copy of the Company’s
most recent audited financial statements to the Issuer upon the written request of the Issuer.

 

Section 5.06. Insurance.
The Company shall maintain, or cause to be maintained, insurance covering the Project Facilities against such risks and in such
amounts as is customarily carried by similar industries as the Company, and which insurance may be, in whole or in part, self-insurance.

 

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ARTICLE
VI

OPTIONS; PREPAYMENT OF INSTALLMENT PAYMENTS

 

Section 6.01.
Options to Terminate. The Company shall have, and is hereby granted, an option to prepay the Installment Payments and
terminate this Agreement, upon satisfaction of the following conditions at any time prior to full payment of the Bonds (or
provision for payment thereof having been made in accordance with the provisions of the Indenture): (a) in accordance
with Article IX of the Indenture, by paying to the Trustee an amount which, when added to the amount on deposit in the
funds established under the Indenture and available therefor, will be sufficient to pay, retire and, pursuant to the
Indenture, redeem all the outstanding Bonds in accordance with the provisions of the Indenture (including, without limiting
the generality of the foregoing, principal of and interest to maturity or the earliest applicable redemption date, as the
case may be, and expenses of redemption and the Trustee’s fees and expenses due hereunder or under the Indenture), and,
in case of redemption, making arrangements satisfactory to the Trustee for the giving of the required notice of redemption,
(b) by giving the Issuer notice in writing of such termination and (c) by making full payment of Additional
Payments due under Section 4.02; thereafter such termination shall forthwith become effective.

 

Any prepayment pursuant
to this Section 6.01 shall either comply with the provisions of Article IX of the Indenture or result in redemption of
the Bonds within 90 days of the date of prepayment. Nothing contained in this Section 6.01 shall prevent the payment
of part of any of the Bonds pursuant to Article IV or Section 9.02 of the Indenture.

 

Section 6.02. Optional
and Extraordinary Optional Redemption; Option to Prepay Installment Payments under Indenture. On or after October 1, 2029,
the Company has the option to prepay the Installment Payments, in whole or in part, and thereby cause the redemption of the Bonds
on the terms and conditions set forth in Section 4.02(a) of the Indenture. The Company also shall have the option, upon the
occurrence of certain extraordinary circumstances described therein, to prepay the Installment Payments in whole or in part upon
the terms and conditions set forth in Section 4.02(b) of the Indenture.

 

Section 6.03. Mandatory
Prepayment of Installment Payments. The Company shall have and hereby accepts the obligation to prepay Installment Payments
with respect to the Bonds to the extent Extraordinary Mandatory Redemption of the Bonds is required pursuant to Section 4.02(c)
of the Indenture.

 

Section 6.04. Actions
by Issuer. At the request and direction of the Company or the Trustee, the Issuer shall take all steps reasonably required
of it under the applicable provisions of the Indenture or the Bonds to effect the redemption of all or a portion of the Bonds pursuant
to this Article VI; provided that, in such event, the Company shall reimburse the Issuer for its reasonable expenses, including
attorneys’ fees, incurred in complying with such request.

 

Section 6.05. Release
of Indenture in Event of Prepayment of Installment Payments. Upon the payment of all amounts due hereunder and under the Indenture
pursuant to any option or obligation to prepay the Installment Payments in full as provided in this Agreement, the Issuer shall,
upon receipt of the prepayment by the Trustee, deliver to the Company, if necessary, a release from the Trustee of the lien of
the Indenture.

 

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ARTICLE
VII

EVENTS OF DEFAULT AND REMEDIES

 

Section 7.01. Events
of Default. Each of the following shall be an Event of Default:

 

(a)       The
Company shall fail to pay the amounts required to be paid under Section 4.01 or 4.02 on the dates specified therein;

 

(b)       Failure
by the Company to observe and perform any covenant, condition or agreement on its part to be observed or performed under this Agreement,
other than as referred to in Section 7.01(a), (other than certain representations, warranties and covenants regarding various
matters relating to the tax status of the interest on the Bonds) for a period of 60 days after written notice specifying such
failure and requesting that it be remedied shall have been given to the Company by the Issuer or the Trustee, unless the Issuer
and the Trustee shall agree in writing to an extension of such time prior to its expiration; provided, however, if the failure
stated in the notice cannot be corrected within the applicable period, it shall not constitute an Event of Default if corrective
action is instituted by the Company within the applicable period and is being diligently pursued until the default is corrected;

 

(c)       The
dissolution or liquidation of the Company or the voluntary initiation by the Company of any proceeding under any federal or state
law relating to bankruptcy, insolvency, arrangement, reorganization, readjustment of debt or any other form of debtor relief, or
the initiation against the Company of any such proceeding which shall remain undismissed for 60 days, or failure by the Company
to promptly have discharged any execution, garnishment or attachment of such consequence as would materially impair the ability
of the Company to carry on its operations, or assignment by the Company for the benefit of creditors, or the entry by the Company
into an agreement of composition with creditors or the failure generally by the Company to pay its debts as they become due; or

 

(d)       The
occurrence of an Event of Default as defined in the Indenture.

 

Any declaration of
default under subparagraph (c) and the exercise of remedies upon any such declaration will be subject to any applicable limitations
of federal bankruptcy law affecting or precluding that declaration or exercise during the pendency of or immediately following
any bankruptcy, liquidation or reorganization proceedings.

 

Section 7.02. Remedies
on Default. Whenever an Event of Default shall have happened and be existing, any one or more of the following remedial steps
may be taken:

 

(a)       if
acceleration of the principal amount of the Bonds has been declared pursuant to Section 7.03 of the Indenture, the Issuer
or the Trustee shall declare all Installment Payments to be immediately due and payable, whereupon the same shall become immediately
due and payable; or

 

(b)       the
Issuer or the Trustee may pursue all remedies now or hereafter existing at law or in equity to collect all amounts then due and
thereafter to become due under this Agreement or to enforce the performance and observance of any other obligation or agreement
of the Company under those instruments.

 

Notwithstanding
the foregoing, the Trustee shall not be obligated to take any step that in its reasonable opinion will or might cause it to
expend time or money or otherwise incur liability unless and until a satisfactory indemnity bond has been furnished to the
Trustee at no cost or expense to it. Any amounts collected pursuant to action taken under this Section (except for amounts
payable directly to the Issuer or the Trustee pursuant to Section 3.06, 4.02, 5.02 or 7.04) shall be paid into the Bond
Fund and applied in accordance with the provisions of the Indenture or, if the Outstanding Bonds have been paid and
discharged in accordance with the provisions of the Indenture, shall be paid as provided in Section 9.01 of the
Indenture for transfers of remaining amounts in the Bond Fund.

 

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The provisions of this
Section are subject to the further limitation that the rescission by the Trustee of its declaration that all of the Bonds are immediately
due and payable also shall constitute an annulment of any corresponding declaration made pursuant to paragraph (a) of this
Section and a waiver and rescission of the consequences of that declaration and of the Event of Default with respect to which that
declaration has been made, provided that no such waiver or rescission shall extend to or affect any subsequent or other default
or impair any right consequent thereon.

 

Section 7.03. No
Remedy Exclusive. No remedy conferred upon or reserved to the Issuer or the Trustee by this Agreement is intended to be exclusive
of any other available remedy or remedies, but each and every remedy shall be cumulative and shall be in addition to every other
remedy given under this Agreement, now or hereafter existing at law, in equity or by statute. No delay or omission to exercise
any right or power accruing upon any default shall impair that right or power or shall be construed to be a waiver thereof, but
any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Issuer
or the Trustee to exercise any remedy reserved to it in this Article, it shall not be necessary to give any notice, other than
any notice required by law or for which express provision is made herein.

 

Section 7.04. Agreement
to Pay Fees and Expenses. If an Event of Default should occur and the Issuer or the Trustee should incur expenses, including
attorneys’ fees, in connection with the enforcement of this Agreement or the collection of sums due hereunder, the Company
shall reimburse the Issuer and the Trustee, as applicable, for the reasonable and documented out-of-pocket expenses so incurred
upon demand.

 

Section 7.05. No
Waiver. No failure by the Issuer or the Trustee to insist upon the performance by the Company of any provision hereof shall
constitute a waiver of their right to performance and no express waiver shall be deemed to apply to any other existing or subsequent
right to remedy the failure by the Company to observe or comply with any provision hereof.

 

Section 7.06. Notice
of Default. The Company shall notify a Responsible Officer the Trustee immediately and in writing if it becomes aware of the
occurrence of any Event of Default hereunder or of any fact, condition or event which, with the giving of notice or passage of
time or both, would become an Event of Default.

 

ARTICLE
VIII

MISCELLANEOUS

 

Section 8.01.
Term of Agreement. This Agreement shall be and remain in full force and effect from the date of issuance of the Bonds
until such time as all of the Bonds shall have been fully paid (or provision made for such payment) pursuant to the Indenture
and all other sums payable by the Company under this Agreement shall have been paid, except for obligations of the Company
under Sections 3.06, 4.02, 5.02 and 7.04, which shall survive any termination of this Agreement.

 

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Notwithstanding any
termination of this Agreement, any payment of any or all of the Bonds or any discharge of the Indenture, if Bonds are redeemed
pursuant to the mandatory redemption upon determination of taxability, the Company shall pay all additional amounts required to
be paid under Section 4.02 of the Indenture at the time provided therein.

 

Section 8.02. Amounts
Remaining in Funds. Any amounts in the Bond Fund remaining unclaimed by the Holders of Bonds (whether at stated maturity, by
redemption or pursuant to any mandatory sinking fund requirements or otherwise), shall be deemed to belong, and shall be paid,
to the proper party pursuant to applicable escheat laws. Further, any other amounts remaining in the Bond Fund, the Project Fund
and any other special fund for accounts created under this Agreement or the Indenture after all of the outstanding Bonds shall
be deemed to have been paid and discharged under the provisions of the Indenture and all other amounts required to be paid under
this Agreement and the Indenture have been paid, shall be paid to the Company to the extent that those moneys are in excess of
the amounts necessary to effect the payment and discharge of the outstanding Bonds.

 

Section 8.03. Notices.
All notices, certificates, requests or other communications hereunder shall be in writing and shall be deemed to be sufficiently
given at the applicable Notice Address as provided in Section 13.03 of the Indenture.

 

Section 8.04. Extent
of Covenants of Issuer; No Personal Liability. All covenants, obligations and agreements of the Issuer contained in this Agreement
or the Indenture shall be effective to the extent authorized and permitted by applicable law. No such covenant, obligation or agreement
shall be deemed to be a covenant, obligation or agreement of any present or future member, trustee, officer, agent or employee
of the Issuer in other than his or her official capacity, and no official executing the Bonds shall be liable personally on the
Bonds or be subject to any personal liability or accountability by reason of the issuance thereof or by reason of the covenants,
obligations or agreements of the Issuer contained in this Agreement or in the Indenture.

 

Section 8.05. Binding
Effect. This Agreement shall inure to the benefit of and shall be binding in accordance with its terms upon the Issuer, the
Company and their respective permitted successors and assigns.

 

Section 8.06. Amendments
and Supplements. Except as otherwise expressly provided in this Agreement or the Indenture, subsequent to the issuance of the
Bonds and prior to all conditions provided for in the Indenture for release of the Indenture having been met, this Agreement may
not be effectively amended, changed, modified, altered or terminated except in accordance with the provisions of Article XI
of the Indenture, as applicable.

 

Section 8.07. Execution
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be regarded as an original
and all of which shall constitute but one and the same instrument.

 

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Section 8.08. Severability.
If any provision of this Agreement, or any covenant, obligation or agreement contained herein is determined by a court to be invalid
or unenforceable, that determination shall not affect any other provision, covenant, obligation or agreement, each of which shall
be construed and enforced as if the invalid or unenforceable portion were not contained herein. That invalidity or unenforceability
shall not affect any valid and enforceable application thereof, and each such provision, covenant, obligation or agreement shall
be deemed to be effective, operative, made, entered into or taken in the manner and to the full extent permitted by law.

 

Section 8.09. Governing
Law. This Agreement shall be deemed to be a contract made under the laws of the State and for all purposes shall be governed
by and construed in accordance with the laws of the State.

 

Section 8.10. Further
Assurances and Corrective Instruments. The Issuer and the Company agree that they will, from time to time, execute, acknowledge
and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably
be required for the further assurance, correction or performance of the expressed intention of this Agreement.

 

Section 8.11. Issuer
and Company Representatives. Whenever under the provisions of this Agreement the approval of the Issuer or the Company is required
or the Issuer or the Company is required to take some action at the request of the other, such approval or such request shall be
given for the Issuer by a Designated Officer and for the Company by an Authorized Company Representative. The Trustee shall be
authorized to act on any such approval or request.

 

Section 8.12. Immunity
of Incorporators, Stockholders, Officers and Directors. No recourse under or upon any obligation, covenant or agreement contained
in this Agreement or in any agreement supplemental hereto, or in the Bonds, or because of any indebtedness evidenced thereby, shall
be had against any incorporator, or against any stockholder, member, officer or director, as such, past, present or future, of
the Company or of any predecessor or, subject to Section 5.04, successor legal entity, either directly or through the Company
or any predecessor or successor legal entity, under any rule of law, statute or constitutional provision or by the enforcement
of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released
by the acceptance of the Bonds by the Holders thereof and as part of the consideration for the issuance of the Bonds.

 

Section 8.13. Section
Headings. The table of contents and headings of the various articles and sections of this Agreement are for convenience of
reference only and shall not modify, define or limit any of the terms or provisions hereof. References to article and section numbers
are references to articles and sections in this Agreement unless otherwise indicated.

 

Section 8.14. Concerning
the Trustee. The rights, privileges, protections, indemnities and immunities of the Trustee under the Indenture are hereby
incorporated herein as if set forth herein in full and shall be extended to, and shall be enforceable by, the Trustee hereunder.

 

[Remainder of Page Intentionally
Left Blank.]

 

    20

     

    

 

IN WITNESS WHEREOF,
the Issuer and the Company have caused this Agreement to be duly executed in their respective names, all as of the date hereinbefore
written.

 

	 	THE
    INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF HOOVER (ALABAMA)
	 	 
	 	 
	 	By:	/s/
Brian Ethridge
	 	 	Brian Ethridge
	 	 	Chairman of the Board of Directors

 

[SEAL]

 

ATTEST:

 

	/s/ Foster Ware	 	 
	Foster
    Ware	 
	Secretary	 

 

	 	UNITED STATES
    STEEL CORPORATION
	 	 
	 	 
	 	By: 	/s/ Arne S. Jahn
	 	 	Arne S. Jahn
	 	 	Treasurer & Chief Risk Officer

 

[Signature Page to
Agreement of Sale]

 

    

     

    

 

EXHIBIT A

 

Project
Facilities

 

The Project Facilities
consist of certain solid waste disposal facilities financed or refinanced with the proceeds of $275,000,000 Environmental Improvement
Revenue Bonds, Series 2019 (United States Steel Corporation Project) issued by The Industrial Development Board of the
City of Hoover (the “Issuer”), including an electric arc furnace and other equipment and facilities, located and to
be located at the Fairfield Works Mill of United States Steel Corporation (the “Company”) at 5700 Valley Road in unincorporated
Jefferson County, Alabama within 25 miles of the corporate limits of the City of Hoover, Alabama, all as more fully described in
the Tax Regulatory Agreement, dated as of the date of delivery of the Bonds, between the Issuer and the Company.

 

    A-1

     

    

 

EXHIBIT B

 

FORM
OF DISBURSEMENT REQUEST

 

Statement No. ____ Requesting Disbursement
of Funds from Project Fund

pursuant to Section 3.03 of Agreement
of Sale between The Industrial Development

Board of the City of Hoover and United States
Steel Corporation

 

Pursuant to Section 3.03
of the Agreement of Sale, dated as of October 1, 2019 (the “Agreement”), between The Industrial Development Board
of the City of Hoover (the “Issuer”) and United States Steel Corporation (the “Company”), the undersigned
Authorized Company Representative hereby requests and authorizes The Bank of New York Mellon Trust Company, N.A., as
trustee (the “Trustee”) under the Trust Indenture, dated as of October 1, 2019 (the “Indenture”),
by and between the Issuer and the Trustee, to pay to the Company or to the person(s) listed on the Disbursement Schedule, if any,
attached hereto out of the moneys deposited in the Project Fund (as established pursuant to the Indenture) the aggregate sum of
$_____________, to reimburse the Company in full, or to pay such person(s) as indicated in any Disbursement Schedule, for the advances,
payments and expenditures made by it in connection with the acquisition, construction, equipping and installation of the Project
Facilities. Capitalized terms used but not defined herein shall have the meanings set forth in the Agreement.

 

In connection with
the foregoing request and authorization, the undersigned hereby certifies that:

 

(a)             
Each item for which disbursement is requested hereunder is properly payable out of the Project Fund in accordance with the
terms and conditions of the Agreement and none of those items has formed the basis for any disbursement heretofore made from the
Project Fund;

 

(b)             
This statement and all exhibits hereto, including the Disbursement Schedule, shall be conclusive evidence of the facts and
statements set forth herein and shall constitute full warrant, protection and authority to the Trustee for its actions taken pursuant
hereto; and

 

(c)             
This statement constitutes the approval of the Company of each disbursement hereby requested and authorized.

 

This _________ day
of ________________, 20__.

 

 

	 	 
	 	
        Authorized
Company Representative

 

    B-1

     

    

 

	Disbursement Schedule
	 	 	 
	Payee	Amount	Purpose

 

    B-2

     

    

 

EXHIBIT C

 

FORM
OF COMPLETION CERTIFICATE

 

Pursuant to Section 3.02
of the Agreement of Sale, dated as of October 1, 2019 (the “Agreement”), between The Industrial Development Board
of the City of Hoover (Alabama) (the “Issuer”) and United States Steel Corporation (the “Company”),
the undersigned hereby certifies to the Trustee (all capitalized terms used and not otherwise defined herein having the meaning
set forth in the Agreement) the following:

 

		(a)	the acquisition, construction, equipping and installation of the Project Facilities was substantially
completed on or about ____________, 20__;

 

		(b)	all other facilities necessary in connection with the Project Facilities have been acquired, constructed,
equipped and installed;

 

		(c)	the total amount disbursed as of the date hereof from the Project Fund for the purposes described
in Section 3.03 of the Agreement is $_______________;

 

		(d)	$________________ shall be retained
                                         in the Project Fund for the payment of costs of the Project Facilities not yet due or
                                         for liabilities which the Company is contesting or which otherwise should be retained,
                                         because                                                                                                      [explain
                                         the reasons such amounts are being contested or should be retained]; and

 

		(e)	other than the amount referred
                                         to in (d) above, the remaining balance in the Project Fund of $_____________________
                                         shall be transferred or disbursed to                                                                                                                                    for
                                                                                                      [explain
                                         the reasons such amounts are being transferred or disbursed and provide the Trustee with
                                         an Opinion of Nationally Recognized Bond Counsel to the effect that such transfer or
                                         disbursement will not cause the interest on the Bonds to be included in the gross income
                                         of the Holders thereof for federal income tax purposes in accordance with Section 5.01(f)
                                         of the Indenture].

 

This _________ day
of ________________, 20__.

 

 

	 	 
	 	
        Authorized
Company Representative

 

    C-1

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