Document:

EX-10.9

 Exhibit 10.9 

Recipient Name: Algoma Steel Inc. 
 ADVANCED
MANUFACTURING FUND 
 AMENDED AND RESTATED CONTRIBUTION AGREEMENT 

This Amended and Restated Contribution Agreement is made as of December 19th, 2018. 

 

			
	BETWEEN:	  	HER MAJESTY THE QUEEN IN RIGHT OF CANADA (“Her Majesty”) hereby represented by the Minister responsible for the Federal Economic Development Agency for Southern Ontario
		
	AND:	  	ALGOMA STEEL INC. (“Recipient”) a corporation incorporated under the laws of British Columbia
		
	AND:	  	ALGOMA STEEL INTERMEDIATE HOLDINGS INC. (“Algoma Holdings”) a corporation incorporated under the laws of British Columbia
		
	AND:	  	ALGOMA STEEL USA INC. (“Algoma USA” and collectively with Algoma Holdings, the “Guarantors”) a corporation incorporated under the laws of Delaware

 WHEREAS the Federal Economic Development Agency for Southern Ontario was created to help make Canadians more productive
and competitive in the knowledge-based economy, by supporting economic development, economic diversification, job creation, and self-reliant communities in Southern Ontario (as defined herein); 

WHEREAS as part of the Southern Ontario Prosperity Program, the Minister has established the Advanced Manufacturing Fund to assist
Ontario manufacturing firms to adopt cutting-edge technologies that demonstrate a commitment to product, process and technological innovation; and 

WHEREAS the Minister entered into a contribution agreement (“Original Contribution Agreement”) made as of July 15, 2015 with Essar Steel
Algoma Inc. (n/k/a/ Old Steelco Inc.) (“Essar”) for a repayable contribution up to Thirty Million Dollars ($30,000,000); 
 WHEREAS the
Recipient has acquired all of the assets of Essar and Essar Steel Algoma Inc. USA (n/k/a Old Steelco Inc. USA) (collectively, the “Sellers”); 

WHEREAS Essar has assigned to the Recipient absolutely all of Essar’s right, title and interest in and to the Original Contribution Agreement and
the Recipient has agreed to assume all obligations and liabilities of Essar under the Original Contribution Agreement; 
 WHEREAS the Minister has
agreed, inter alia, to amend the Original Contribution Agreement to increase the amount of the repayable Contribution (as defined below) up to the maximum amount of Sixty Million Dollars ($60,000,000) in support of the Recipient’s
Eligible and Supported Costs (as defined herein) of the Project; 
 WHEREAS the Parties have agreed to amend and restate the Original Contribution
Agreement; 
 NOW THERETOFORE, in accordance with the mutual covenants and agreements herein, Her Majesty as represented by the Minister (as defined
herein) and the Recipient agree as follows: 
  

	1.	 Purpose of the Agreement 

The purpose of this Agreement is to set out the terms and conditions under which the Minister will provide funding in support of the Project (as defined
herein). 
  

	2.	 Interpretation 

 

	2.1.	 Definitions. In this Agreement, a capitalized term has the meaning given to it in this section, unless
the context indicates otherwise: 

 ABL Agent means Wells Fargo Capital Finance Corporation Canada, in its capacity as
administrative agent and collateral agent for the ABL Lenders, and any successor thereto in such capacity in respect of the ABL Facility. 

  
 Page 1 of 42 

 Recipient Name: Algoma Steel Inc. 

 

 ABL Credit Agreement shall mean the Revolving Credit Agreement, dated as of November 30th, 2018, among the Recipient, the guarantors from time to time party thereto, the lenders from time to time party thereto, the ABL Agent and the other parties thereto from time to time party thereto.

 ABL Facility means an asset based credit facility provided by the ABL Lender to the Recipient in an aggregate principal amount and secured by the
Collateral, not exceeding the greater of (a) US$312,500,000 with an incremental facility that allows for increasing the initial aggregate principal amount to the “Incremental Cap” (as defined in the ABL Credit Agreement as of November
30th, 2018, including after giving effect to Sections 1.06 and 1.07(c) thereof) and (b) the “Borrowing Base” (as defined in the ABL Credit Agreement as in effect on November 30th, 2018, but without giving effect to any “reserves” and regardless of whether the ABL Facility in effect as of November 30th, 2018 is in
effect at such time). 
 ABL Lender means the lenders party to the ABL Facility from time to time. 

Acquisition means the transaction of purchase and sale contemplated by the Asset Purchase Agreement. 

Affiliate means, with respect to any Person (the “first Person”), a Person that Controls, is Controlled by or is under common Control with,
the first Person. 
 Agency means the Federal Economic Development Agency for Southern Ontario. 

Agreement means this amended and restated contribution agreement as executed by the parties including all the annexes attached hereto, as such may be
amended, restated or supplemented, from time to time. 
 Applicable Law means any law, statute, by-law,
ordinance, decree, requirement, directive, order, license, permit, code or regulation having the force of law, and any applicable determination, interpretation, ruling, order or decree of any Governmental Authority or arbitrator, which is legally
binding. 
 Asset Purchase Agreement means that certain asset purchase agreement dated as of July 20, 2018, between the Sellers and the
Recipient, pursuant to which the Recipient will purchase the Facility along with substantially all of the other property and assets owned by the Sellers and used in connection with the Business, as such agreement may be amended, amended and
restated, supplemented, extended and/or assigned from time to time. 
 Assets means, with respect to any Person, any property, assets and
undertakings of such Person of every kind, real and personal, tangible and intangible, and wherever situate, whether now owned or hereafter acquired (and, for greater certainty, includes any equity or like interest in any Person). 

Authorization means, with respect to any Person, any authorization, order, permit, approval, grant, licence, consent, right, franchise, privilege,
certificate, judgment, writ, injunction, award, determination, direction, decree, by-law, rule or regulation of any Governmental Authority having jurisdiction over such Person, whether or not having the force
of Applicable Law. 
 Business means the Recipient’s integrated steel production business (including without limitation, the production or
certain raw steel inputs, steelmaking, and the sale and distribution of steel products). 
 Business Asset Sale means a Disposition of all or
substantially all of the assets of the Recipient to a Person that is not an Affiliate of the Recipient. 
 Business Day means any working day Monday
to Friday inclusive, excluding statutory and other holidays, namely: New Year’s Day; Family Day; Good Friday; Easter Monday; Victoria Day; Canada Day; Civic Holiday; Labour Day; Thanksgiving Day; Remembrance Day; Christmas Day; Boxing day; and
any other day on which the Government of Canada has elected to be closed for business. 
 Canada Documents means this Agreement, the Security
Documents, each Guarantee and all other documents to be executed and delivered to the Minister in connection with the Contribution. 
 Capex Plan
means the capital expenditure plan described in Annex I - Statement of Work. 
 Capital Stock means, with respect to any Person from time to time,
any and all shares, units, trust units, partnership, membership or other interests, participations or other equivalent rights in the Person’s equity or capital from time to time, however designated and whether voting or non-voting. 
 Change of Control has the meaning specified in Subsection 8.4. 

  
 Page 2 of 43 

 Recipient Name: Algoma Steel Inc. 

 

 Collateral means the Assets of the Recipient or any Guarantor subject to any Lien pursuant to a
Security Document. 
 Control means, in respect of a particular Person, the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the ability to exercise voting power, by contract or otherwise; and “Controlling” and “Controlled” have meanings correlative thereto. 

Closing Date means the date of execution of this Agreement by the Recipient. 

Completion Date means the Project completion date, March 31, 2021. 

Contribution means the contribution to Eligible and Supported Costs in the amount stipulated in Subsection 4.1. 

Control Period means the period of one (1) year following the period determined in Subsection 3.1 as the duration of the Agreement. 

Date of Acceptance means the date on which the duplicate fully executed copy of this Agreement is received by the Minister. 

Default means an act, omission, occurrence or circumstance which constitutes, or would constitute unless remedied following the giving of notice or the
passage of time as prescribed herein, an Event of Default. 
 Disposition means with respect to any Asset of any Person, any direct or indirect sale,
lease (where such Person is the lessor of such Asset), assignment, cession, transfer (including any transfer of title or possession), exchange, conveyance, release, gift or other disposition of such Asset; and “Dispose” and
“Disposed” have meanings correlative thereto. 
 Eligibility Date means October 1, 2014. 

Eligible Costs means those costs incurred by the Recipient and which, in the opinion of the Minister, are reasonable and required to carry out the
Project. 
 Eligible and Not-Supported Costs means those Eligible Costs which are not supported by the
Contribution and which are identified in Annex I – Statement of Work. 
 Eligible and Supported Costs means those Eligible Costs supported by
the Contribution and which are identified in Annex 1 – Statement of Work and relating to the Project activities described therein and which are in compliance with Annex 2 – Costing Memorandum. 

Event of Default means the events of defaults described in Subsection 12.1 hereof. 

Facility means the facilities used or operated in connection with the Business and located in Sault Ste. Marie. 

Fiscal Year means the Government of Canada’s fiscal year beginning on April 1st of a year and ending on March 31st of the following year. 

Foreground Intellectual Property includes, without limitation, all technical data, designs, specifications, software, data, drawings, plans, reports,
patterns, models, prototypes, demonstration units, practices, inventions, methods and related technology, processes or other information conceived, produced, developed or reduced to practice in carrying out the Project, and all rights therein,
including, without limitation, patents, copyrights, industrial designs, trade-marks and any registrations or applications for the same and all other rights of intellectual property therein, including any rights which arise from the above items being
treated by the Recipient as trade secrets or confidential information. 
 Governmental Authority means any government or governmental entity,
parliament, legislature, or commission or board of any government, parliament or legislature, or any political subdivision thereof, or any court or (without limitation to the foregoing) any other law, regulation or rule-making entity (including,
without limitation, any central bank, fiscal or monetary authority or authority regulating banks or pension plans) having or purporting to have jurisdiction in the relevant circumstances, or any Person acting or purporting to act under the authority
of any of the foregoing (including, without limitation, any arbitrator) or any other authority charged with the administration or enforcement of Applicable Laws. 

  
 Page 3 of 43 

 Recipient Name: Algoma Steel Inc. 

 

 Guarantee means the guarantee set forth in Section 18 of this Agreement provided by the
Guarantors in favour of Her Majesty as such provisions may be amended, restated or supplemented, from time to time. 
 Guarantor has the meaning
ascribed to it in the appearances to this Agreement and any other Person who becomes a guarantor of the Recipient’s indebtedness, liabilities and obligations hereunder pursuant to Paragraphs 8.2 (n) and 83 (g). 

Intercreditor Agreement means an intercreditor agreement dated on or about the date hereof among the Her Majcsty, the Recipient, the Guarantors, the
Term Agent, the ABL Agent and the Government of Ontario in its capacity as lender under the Ontario Facility confirming the following order of priority of the Liens granted by the Recipient to such Persons, notwithstanding the order of registration
of such Liens: 
  

	 	(a)	 firstly, the Liens granted to the Term Agent (other than in respect of (i) the Recipient’s current
assets (as defined in accordance with GAAP), which the ABL Agent shall have first lien against), and (ii) the Capital Stock of New Port LP and New Port GP owned by the Recipient, which the Port Lender shall have a first lien against and no
other party to the Intercreditor Agreement shall have any Lien against); 

  

	 	(b)	 secondly, the Lien granted to the ABL Lender, and 

 

	 	(c)	 thirdly, the Liens granted to Her Majesty and the Government of Ontario (which shall rank on a pari
passu basis with one another). 

 Lease has the meaning specified in Paragraph 8.1(o). 

Leased Lands has the meaning specified in Paragraph 8.l(o). 

Lien means any mortgage, debenture, pledge, charge, assignment by way of security, hypothecation, security interest or other lien or charge (whether
fixed, floating or otherwise), title retention, any deposit of moneys under any agreement or arrangement whereby such moneys may be withdrawn only upon fulfilment of any condition as to the discharge of any other indebtedness or any other
arrangement, trust or agreement having the effect of security for the payment of any debt, liability or obligation to any creditor. 
 Material Adverse
Effect means (a) any material adverse change in the Assets, operations or condition (financial or otherwise) of the Recipient, taken as a whole; (b) any material adverse effect on the ability of the Recipient to perform its obligations
to the Minister under the Canada Documents; (c) any material adverse effect on the legality, validity or enforceability of this Agreement or any of the Canada Documents including the validity, enforceability, perfection or priority of any Lien
created or intended to be created under any of the Security Documents; or (d) any material impairment of the rights or remedies of the Minister under the Canada Documents. 

Material Agreements means those agreements of the Recipient or its Subsidiaries, the breach, non-performance, cancellation or non-renewal of which could reasonably be expected to have a Material Adverse Effect, including those agreements set out in Schedule 1.1A of the Ontario Facility credit agreement. 

Minister means the Minister responsible for the Agency or any one or more of his/her representatives. 

New Port GP means Algoma Docks GP Inc., a British Columbia corporation and the general partner of New Port LP. 

New Port LP means Algoma Docks Limited Partnership, an Ontario limited partnership. 

Non-Arm’s Length and similar phrases have the meaning attributed thereto for the purposes of the
Income Tax Act (Canada) and Arm’s Length has the opposite meaning. 
 Ontario Facility means the credit facility provided by the
Government of Ontario (through the Ministry of Northern Development and Mines) to the Recipient in the aggregate principal amount of $60,000,000 and secured by the Collateral. 

Parties means the Minister, the Recipient and the Guarantors and Party means any one of them. 

Permitted Prior Secured Indebtedness means the indebtedness for borrowed money in respect of (i) the Term Loan, (ii) the ABL Facility,
(iii) the Port Loan and (iv) any other indebtedness, the security for which is permitted under the terms of the documentation governing the Term Loan and/or the ABL Facility to rank pari passu with or in priority to the security
granted in connection with the Term Loan or the ABL Facility, as the case may be. 

  
 Page 4 of 43 

 Recipient Name: Algoma Steel Inc. 

 

 Permitted Refinancing Term Loans shall mean any broadly syndicated indebtedness of the Recipient
issued in exchange for, or the net cash proceeds of which are used to extend, renew, refund, refinance, replace, defease or discharge the Term Loan indebtedness of the Recipient provided that: 

(a)    the principal amount (or accreted value, if applicable) of such Permitted Refinancing Term Loans docs not exceed
the principal amount (or accreted value, if applicable) of the Term Loans being extended, renewed, refunded, refinanced, replaced, defeased or discharged (plus all interest thereon that has been paid-in-kind, all accrued and unpaid interest on such Term Loans being extended, renewed, refunded, refinanced, replaced, defeased or discharged and the amount of all premiums (including tender premiums),
penalties, fees and expenses (including upfront fees and original issue discount), incurred in connection therewith); 

(b)    such Permitted Refinancing Term Loans have a final maturity date no earlier than the final maturity date of the
Term Loans being extended, renewed, refunded, refinanced, replaced, defeased or discharged; 
 (c)    such Permitted
Refinancing Term Loans are not secured by any assets other than the assets that secured the Term Loans being extended, renewed, refunded, refinanced, replaced, defeased or discharged and the holders of such Permitted Refinancing Term Loans (or their
agent or other representative) shall become a party to the Intercreditor Agreement; 
 (d)    such Permitted Refinancing
Term Loans is guaranteed only by those Persons that are guarantors of the Term Loans being extended, renewed, refunded refinanced, replaced, defeased or discharged; and 

(c)    the Incorporated Covenants and “Change of Control” provisions of any Permitted Refinancing Term Loans
(excluding, for greater clarity, pricing, interest, fees, rate floors, premiums, optional prepayment or redemption terms, security and maturity) shall be (i) substantially identical to, or (taken as a whole) no more favorable (as determined by
the Recipient in good faith and certified by the Recipient to the Minister) to the Recipient than those applicable to the refinanced Term Loans, or (ii) reasonably acceptable to the Minister (it being agreed that (x) Incorporated Covenants
and “Change of Control” provisions of any Permitted Refinancing Term Loans that are more favorable to the lenders or the agent of such refinanced Term Loans than those contained in the Term Loan Credit Agreement and are then conformed (or
added) to the Term Loan Credit Agreement pursuant to the applicable refinancing amendment shall thereafter be deemed acceptable to the Minister and (y) with respect to any Incorporated Covenants or “Change of Control” provisions of
any Permitted Refinancing Term Loans, replacing any “Required Lenders Negative Consent” or similar provisions in the Term Loan Credit Agreement on the date hereof with the reasonable discretion of the Term Agent, and/or permitting
thresholds, dollar or ratio “baskets” therein (as of the effective date or issuance of such Permitted Required Term Loans) in an amount not exceeding the amounts set forth in the Term Loan Credit Agreement on the date hereof, shall, in
each ease of this clause (y), be deemed acceptable to the Minister). 
 Person means any natural person, corporation, limited liability company,
trust, joint venture, association, company, partnership. Government Authority or other entity. 
 Port Agent means Cortland Capital Market Services
LLC, in its capacity as the administrative agent and collateral agent under the Port Loan, or any successor administrative agent and collateral agent under the Port Loan. 

Port Lender means, collectively, GIP Primus, L.P. and Brightwood Loan Services LLC, as investors party to the Port Loan. 

Port Loan means the Senior Secured Term Loan Credit Agreement among New Port LP, as borrower. New Port GP, as General Partner, the Recipient, as
guarantor, the Port Agent and the Port Lender pursuant to which the Port Lender shall advance USS73,000,000 to New Port LP on November 30th, 2018 in connection with the transactions contemplated
under the Asset Purchase Agreement. 
 Project means the project described in Annex I – Statement of Work, which is a sub-project of the Capex Plan. 
 Security Documents means all deeds, documents, instruments and agreements entered
into in favour of and for the benefit of Her Majesty securing the obligations of the Recipient and Guarantors under this Agreement, as such deeds, documents, instruments or agreements may be amended, restated or supplemented, from time to time. 

  
 Page 5 of 43 

 Recipient Name: Algoma Steel Inc. 

 

 Sellers has the meaning ascribed to it in the Recitals hereof. 

“SIF Facility” means a contribution to be provided by the Government of Canada (though Strategic Innovation Fund under the auspices of the
Ministry of Innovation, Science and Economic Development Canada) to the Recipient in the aggregate principal amount of CDN $30,000,000 in the form of a CDN $15,000,000 repayable contribution and a CDN $15,000,000 grant, and which is unsecured. 

Subsidiary means, at any time with respect to a Person, any other person, if at such time such first-mentioned Person owns, directly or indirectly,
more than 50% of the Capital Stock, in such other Person entitled ordinarily to vote in the election of the board of directors of, or Persons performing similar functions for, such other Person. 

Taxes means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any
Governmental Authority, including an interest, additions to tax or penalties applicable thereto. 
 Term Agent means Cortland Capital Market Services
LLC, in its capacity as administrative agent and collateral agent for the Term Lenders on the date hereof, and any successor thereto in such capacity in respect of the Term Loan. 

Term Lenders means the lenders from time to time party to the Term Loan. 

Term Loan means collectively, (a) the term loan as of the date hereof in the aggregate principal amount of (i) U.S.$357,000,000.00 plus
(ii) any payment in kind interest pursuant to the exercise of the “PIK Election” (as defined in the Term Loan Credit Agreement as of November 30th, 2018) being provided by the Term
Lenders to the Recipient, with an incremental facility that allows for increasing the initial aggregate principal amount to the “Incremental Cap” (as defined in the Term Loan Credit Agreement as of November 30th, 2018 but regardless of whether then in effect on the relevant date of determination, including after giving effect to Sections 1.05 and 1.06(c) thereof) and (b) any Permitted Refinancing Term Loans
in respect of the term loan described under clause (a), and in each case secured by the Collateral. 
 Term Loan Credit Agreement shall mean the Term
Loan Credit Agreement, dated as of November 30th. 2018, among the Recipient, the guarantors from time to time party thereto, the Term Lenders from time to time party thereto, the Term Agent and
the other parties thereto from time to time party thereto. 
  

	2.2.	 Singular/Plural. Wherever from the context it appears appropriate, each term stated in either the
singular or plural shall include the singular and the plural. 

  

	2.3.	 Entire Agreement. This Agreement together with the agreements and other documents to be delivered
pursuant to this Agreement constitute the entire agreement between the Parties. No prior document, negotiation, provision, undertaking or agreement in relation to the subject matter of this Agreement has legal effect. No representation or warranty,
whether express, implied or otherwise, has been made by the Minister to the Recipient or Guarantors, except as expressly set out in this Agreement. 

  

	2.4.	 Inconsistency. In case of inconsistency or conflict between a provision contained in the part of the
Agreement preceding the signatures and a provision contained in any of the Annexes to this Agreement, the provision contained in the part of the Agreement preceding the signatures will prevail. 

 

	2.5.	 Calculation of Time. Unless otherwise specified, time periods within or following which any payment is
to be made or act is to be done shall be calculated by excluding the day on which the period commences and including the day on which the period ends. Where the last day of any such time period is not a Business Day, such time period shall be
extended to the next Business Day following the day on which it would otherwise end, unless otherwise expressly provided. 

  

	2.6.	 Business Days. Whenever any action to be taken or payment to be made pursuant to this Agreement would
otherwise be required to be made on a day that is not a Business Day, such action shall be taken or such payment shall be made on the first Business Day following such day, and such extension of time shall be included in the computation of interest
or fees, as the case may be. 

  

	2.7.	 Annexes. This Agreement contains the following Annexes as described below, which form an integral part
of this Agreement: 

 Annex 1 - Statement of Work 

Annex 2 - Costing Guideline Memorandum 

Annex 3 - Reporting Requirements 

Annex 4 - Federal Visibility Requirements 

  
 Page 6 of 43 

 Recipient Name: Algoma Steel Inc. 

 

 Annex 5 - Repayment Schedule 

Annex 6 - Recipient Information 
  

	2.8.	 Amendment and Restatement. This Agreement amends and restates the Original Contribution Agreement in its
entirety. 

  

	3.	 Duration of Agreement 

 

	3.1.	 Duration of Agreement. This Agreement comes into force on the Date of Acceptance and will terminate,
subject to Subsection 3.2, upon the date on which all amounts due by the Recipient to Her Majesty under this Agreement have been paid in full, unless terminated earlier in accordance with the terms of this Agreement. 

 

	3.2.	 Control Period. Notwithstanding the provisions of Subsection 3.1 above, during the Control Period, the
rights and obligations described in the following sections shall continue beyond the duration of the Agreement: 

Subsections 7.2, 7.3, 7.4, 7.5, 7.6, 7.7 and 7.8 – Reporting, Monitoring, Audit and Evaluation 

Section 11 – Indemnification and Limitation of Liability 

Section 15.7 and 15.8– Confidentiality 

Section 3 of Annex 3 – Reporting Requirements 
  

	3.3.	 Commencement. The Recipient agrees to commence the Project, no later than sixty (60) calendar days
after the Date of Acceptance otherwise the Minister may terminate this Agreement at his sole discretion. 

  

	4.	 The Contribution 

 

	4.1.	 The Minister will make a repayable Contribution to the Recipient in respect of the Project in an amount not
exceeding the lesser of (a) and (b) as follows: 

  

	 	(a)	 50% of Eligible and Supported Costs incurred by the Recipient; and 

 

	 	(b)	 $60.000.000 

  

	4.2.	 The payment of the Contribution per Fiscal Year is estimated at amounts specified in Annex 1 – Statement
of Work. The Minister will have no obligation to pay any amounts in any other Fiscal Years than those specified in Annex 1 – Statement of Work. 

  

	4.3.	 The Minister shall not contribute to any Eligible and Supported Costs incurred prior to the Eligibility Date or
later than the Completion Date. 

  

	4.4.	 The Recipient shall be responsible for all costs of the Project, including cost overruns, if any.

  

	4.5.	 Holdbacks. Notwithstanding any other provisions of this Agreement, the Minister may, at the
minister’s sole discretion, withhold up to ten percent (10%) of the Contribution amount until: 

  

	 	(a)	 the Project is completed to the satisfaction of the Minister; 

 

	 	(b)	 the Recipient has satisfied all the conditions of this Agreement; 

 

	 	(c)	 the final report described in Subsection 6.5(a)(iii) has been submitted to the satisfaction of the Minister;

  

	 	(d)	 audits and site visit, where required by the Minister, have been completed to the satisfaction of the Minister,
and 

  

	 	(c)	 the Minister has approved the final claim described in Subsection 6.5. 

 

	5.	 Other Government Financial Support 

 

	5.1.	 The Recipient hereby confirms that for purposes of this Project, no federal, provincial, municipal or local
government assistance has been requested, received or will be received except as disclosed in Annex 1 – Statement of Work. 

  
 Page 7 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	5.2.	 The Recipient shall promptly inform the Minister in writing in the event additional and/or other government
financial support has been requested or received for the Project, during the term of this Agreement and acknowledges and agrees that an adjustment to the amount of the Contribution and a request for repayment of part or all of the amounts paid to
the Recipient may be made as a result thereof. In such event, Annex 5 – Repayment Schedule, will be adjusted accordingly and communicated to the Recipient. The amount of repayment requested will constitute a debt due to Her Majesty and will be
recovered as such from the Recipient. 

  

	5.3.	 In no instance will the total government funding towards the Eligible Costs be allowed to exceed fifty percent
(50%) of the total Eligible Costs. 

  

	6.	 Claims and Payments 

 

	6.1.	 The Recipient shall maintain accounting records that account for the Contribution paid to the Recipient and the
related Project costs in respect of this Agreement, separate and distinct from any other sources of funding. 

  

	6.2.	 Claims Procedures. The Recipient shall submit claims for reimbursement of Eligible and Supported Costs
incurred, not more frequently than monthly and not less frequently than quarterly in a form satisfactory to the Minister. Each claim will include the following information: 

 

	 	(a)	 an itemized summary by cost category of Eligible and Supported Costs incurred substantially in the form
prescribed by the Minister; 

  

	 	(b)	 a certification of the claim by a director or officer of the Recipient, confirming the accuracy of the claim
and all supporting information provided; 

  

	 	(c)	 if applicable, a certification by a director or officer of the Recipient that any environmental mitigation
measures that may be set out in this Agreement have been implemented; and 

  

	 	(d)	 any other substantiating documentation (including without limitation, any invoice or proof of payment), as may
be required by the Minister. 

  

	6.3.	 The Recipient agrees to submit its first claim for Eligible and Supported Costs ninety (90) calendar days
after the date any conditions precedent described in Section 17 are satisfied, as communicated by the Minister to the Recipient. 

  

	6.4.	 [Intentionally deleted] 

 

	6.5.	 Final Claim Procedures 

 

	 	(a)	 The Recipient shall submit a final claim pertaining to the final reimbursement of any Eligible and Supported
Costs previously claimed or not, signed by a director or officer of the Recipient and accompanied by the following, in addition to the requirements set out in Subsection 6.2, in a form satisfactory to the Minister in scope and detail:

  

	 	(i)	 a final statement of total Project costs; 

 

	 	(ii)	 a statement of the total government assistance (federal, provincial and municipal assistance) received or
requested towards the Eligible Costs of the Project; 

  

	 	(iii)	 a final report on the Project, as more fully described in Section 2 of Annex 3 – Reporting
Requirements; and 

  

	 	(iv)	 a final certificate executed by a director or officer of the Recipient substantially in the form prescribed by
the Minister; 

  

	 	(b)	 The Recipient shall submit the final claim for reimbursement of Eligible and Supported Costs to the
satisfaction of the Minister no later than three (3) months after the Completion Date or the date the Project is completed to the satisfaction of the Minister, whichever is earlier. The Minister shall have no obligation to pay any claims
submitted after this date. 

  

	6.6.	 Payment Procedures. 

  
 Page 8 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	 	(a)	 The Minister shall review and approve the documentation submitted by the Recipient following the receipt of the
Recipient’s claim and in the event of any deficiency in the documentation, it will notify the Recipient and the Recipient shall immediately take action to address and rectify the deficiency. 

 

	 	(b)	 Subject to the maximum Contribution amounts set forth in Subsection 4.1 and all other conditions contained in
this Agreement, the Minister shall pay to the Recipient the Eligible and Supported Costs set forth in the Recipient’s claim, in accordance with the Minister’s customary practices. 

 

	 	(c)	 The Minister may request at any time that the Recipient provides satisfactory evidence to demonstrate that all
Eligible and Supported Costs claimed have been paid. 

  

	 	(d)	 The Minister may require, at his expense, any claim submitted for payment of the Contribution be certified by
the Recipient’s external auditor or by an auditor approved by the Minister. 

  

	6.7.	 Overpayment or Non-Entitlement. Where, for any reason, the
Recipient is not entitled to all or part of the Contribution or the amount paid to the Recipient exceeds the amount to which the Recipient is entitled, the Contribution or the amount in excess, as the case may be, shall constitute a debt due to Her
Majesty and shall be recovered as such from the Recipient. The Recipient shall repay Her Majesty within thirty (30) calendar days from the date of the Minister’s notice, the amount of the Contribution disbursed or the amount of the
overpayment, as the case may be, together with interest as calculated in accordance with Subsection 15.2 of this Agreement. 

  

	6.8.	 Repayment. 

  

	 	(a)	 The Recipient agrees to repay the Contribution to Her Majesty in accordance with the repayment schedule
attached hereto as Annex 5 – Repayment Schedule. 

  

	 	(b)	 Any overdue amount will bear interest in accordance with Subsection 15.2. 

 

	 	(c)	 A fifteen dollar ($15) administration fee will be charged on every payment for which funds were unavailable in
the account identified or used for payment. 

  

	 	(d)	 The Recipient may at any time make prepayments on account of repayment instalments and each such prepayment
will be applied first to interest owing, if any, and secondly to repayment instalments in reverse order of maturity. 

  

	7.	 Reporting, Monitoring, Audit and Evaluation 

 

	7.1.	 The Recipient agrees to provide the Minister with the reports as described in Annex 3 – Reporting
Requirements, to the Minister’s satisfaction. 

  

	7.2.	 Upon request of the Minister and at no cost to the Minister, the Recipient shall promptly elaborate upon any
report submitted or provide such additional information as may be requested. 

  

	7.3.	 The Minister may request a copy of any report or publication produced as a result of this Agreement or the
Project, whether interim or final, as soon as it becomes available 

  

	7.4.	 The Recipient shall at its own expense: 

 

	 	(a)	 preserve and make available for audit and examination by the Minister, proper books, accounts and records of
the Project costs and Capex Plan costs, wherever such books, and records may be located, and permit the Minister to conduct such independent audits and evaluations as the Minister in his discretion may require; 

 

	 	(b)	 upon reasonable notice and after consultation with the Recipient, permit the Minister, reasonable access to the
Project site and/or the Recipient’s premises and documents in order to inspect and assess the progress and results of the Project and compliance with the terms of this Agreement; and 

 

	 	(c)	 supply promptly, on request, such other reports or data in respect of the Project and Capex Plan and their
results, as the Minister may require for purposes of this Agreement and for statistical and/or evaluation purposes. 

  
 Page 9 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	7.5.	 The Minister shall have the right, at his own expense, and as and when he determines necessary, to perform
audits of the Project and Capex Plan costs and the Recipient’s books, accounts, records, financial statements and claims for reimbursement of Eligible and Supported Costs, and the Recipient’s administrative, financial and claim
certification processes and procedures, for the purposes of verifying the costs of the Project and Capex Plan, validating claims for reimbursement of Eligible and Supported Costs, ensuring compliance with the terms of this Agreement, and confirming
amounts repayable to Her Majesty under the provisions of this Agreement. 

  

	7.6.	 Any audits performed hereunder will be carried out by auditors selected by the Minister, which may include any
of the following: Agency officials, an independent auditing firm, and/or the Recipient’s external auditors. The Minister will provide the Recipient with a description of the scope and criteria of the audit and the expected time frames for
completion of the audit and public release of the related reports. 

  

	7.7.	 The Recipient agrees that the Minister, at the Minister’s expense, may engage outside firms or
individuals, unrelated to the Government of Canada, with the required expertise to evaluate and monitor the Project and the Capex Plan and its implementation or review any documents submitted by the Recipient. The Recipient agrees to provide access
to any site, meeting or to any document in relation to the Project and Capex Plan to such firms or individuals. Contracts for services with these advisors or consultants will contain confidentiality provisions. 

 

	7.8.	 Auditor General of Canada. The Recipient acknowledges that the Auditor General of Canada may, at the Auditor
General’s cost, after consultation with the Recipient, conduct an inquiry under the authority of Subsection 7.1(1) of the Auditor General Act in relation to any funding agreement (as defined in Subsection 42(4) of the Financial
Administration Act) with respect to the use of funds received. For purposes of any such inquiry undertaken by the Auditor General, the Recipient shall provide, upon request and in a timely manner, to the Auditor General or anyone acting on
behalf of the Auditor General: 

  

	 	(a)	 all records held by the Recipient or by agents or contractors of the Recipient, relating to this Agreement and
the use of the Contribution; and 

  

	 	(b)	 such further information and explanations as the Auditor General, or anyone acting on behalf of the Auditor
General, may request relating to this Agreement and/or the Contribution. 

  

	8.	 Representations and Covenants 

 

	 	8.1.	 Representations. The Recipient represents and warrants that: 

 

	 	(a)	 it is a corporation, duly incorporated and validly existing and in good standing under the laws of British
Columbia and has the power and authority to carry on its business, to hold its property and to enter into this Agreement. The Recipient warrants that it shall remain as such for the duration of this Agreement; 

 

	 	(b)	 the execution, delivery and performance of this Agreement and the Canada Documents have been duly and validly
authorized by the necessary corporate actions of the Recipient and the Guarantors and when executed and delivered by the Recipient and the Guarantors, this Agreement and the Canada Documents constitute a legal, valid and binding obligation of the
Recipient and the Guarantors, enforceable against them in accordance with their respective terms subject only to (i) bankruptcy, insolvency, reorganization, moratorium or creditors’ rights generally; and (ii) the discretion that a
court may exercise in the granting of equitable remedies; 

  

	 	(c)	 the only jurisdictions (or registration districts within such jurisdictions) in which the Recipient and the
Guarantors have any place of business or store any material tangible personal property are as set forth in Annex 6 – Recipient Information. Annex 6 – Recipient Information also sets out a complete and accurate list of full and correct name
of the Recipient and Guarantors, including any French and English forms of names; 

  

	 	(d)	 the Recipient’s Assets are insured in accordance with the provisions of the Permitted Prior Secured
Indebtedness and Paragraph 8.2(k) of this Agreement; 

  

	 	(e)	 each signatory to this Agreement, on behalf of the Recipient and each Guarantor, has been duly authorized under
all necessary corporate action to execute and deliver this Agreement; 

  

	 	(f)	 [Intentionally deleted] 

  
 Page 10 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	 	(g)	 the execution and delivery of this Agreement and the performance by the Recipient of its obligations hereunder
will not, with or without the giving of notice or the passage of time or both: 

  

	 	(i)	 violate the provisions of the Recipient’s constating documents, any other corporate governance document
subscribed to by the Recipient or any resolution of the Recipient, currently in effect; 

  

	 	(ii)	 violate any judgment, decree, order or award of any court, government agency, regulatory authority or
arbitrator; or 

  

	 	(iii)	 conflict with or result in the breach or termination of any term or provision of, or constitute a default
under, or cause any acceleration under, any license, permit, concession, franchise, indenture, mortgage, lease, equipment lease, contract, permit, deed of trust or any other instrument or agreement by which it is bound, in each case which could be
reasonably be expected to have a Material Adverse Effect; 

  

	 	(h)	 there are no actions, suits, investigations or other proceedings pending or, to the knowledge of the Recipient,
threatened and there is no order, judgment or decree of any court or governmental agency, which could be reasonably expected to have a Material Adverse Effect on the Recipient’s ability to carry out the activities contemplated by this
Agreement; 

  

	 	(i)	 the Recipient possesses all Authorizations as may be necessary to properly conduct its business, the failure of
which to possess would reasonably be expected to have a Material Adverse Effect. All such Authorizations are in good standing and the Recipient is not in material default under any of them except where the failure of such Authorizations to be in
good standing or any such material default would not reasonably be expected to have a Material Adverse Effect; 

  

	 	(j)	 it owns or holds sufficient rights in any intellectual property required to carry out the Project and Capex
Plan; 

  

	 	(k)	 the description of the Project and Capex Plan in Annex I – Statement of work is complete and accurate in
all material respects; 

  

	 	(l)	 it is undertaking manufacturing and/or research and development activities in Ontario; 

 

	 	(m)	 the Security Documents will be effective to create (i) a valid and continuing Lien on the Collateral and,
(ii) upon the filing of the appropriate financing statements or other applicable personal property security registrations and filings, a perfected Lien in favour of Her Majesty on the Collateral, with respect to which a security interest may be
perfected by filing pursuant to personal property security legislation in all applicable jurisdictions; 

  

	 	(n)	 the Recipient owns its Assets with good and marketable title thereto, free and clear of all Liens except for
Liens permitted under the Permitted Prior Secured Indebtedness. The Security Documents and the Liens securing Permitted Prior Secured Indebtedness described in clauses (a) and (b) of the definition of that term will rank in the order of
priority set out in the Intercreditor Agreement; 

  

	 	(o)	 as of the date hereof, the real property listed in Annex 6 – Recipient Information are the only leased
lands of the Recipient (the “Leased Lands”). Each lease of the Leased Lands (each a “Lease”) is in full force and effect, unamended except as permitted under this Agreement. Each Lease is in good standing in all
material respects and all amounts owing under them have been paid by the Recipient except any such amount the payment obligation in respect of which is in bona fide dispute; 

 

	 	(p)	 the Recipient is in compliance with all Applicable Law, except where
non-compliance would reasonably be expected to have a Material Adverse Effect; 

  

	 	(q)	 no Default has occurred and is continuing; 

  
 Page 11 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	 	(r)	 Annex 6 – Recipient Information lists the authorized capital of the Recipient together with the registered
and beneficial owners of the issued capital thereof as of the Closing Date. Except as set forth in Annex 6 – Recipient Information, as of the Closing Date, no Person has an agreement or option or any other right or privilege (whether by law, pre-emptive or contractual) capable of becoming an agreement or option, including convertible securities, warrants or convertible obligations of any nature, for the purchase, subscription, allotment or issuance of
any Capital Stock of the Recipient. Except as set forth in Annex 6 – Recipient Information, the Recipient does not as of the Closing Date have any subsidiaries; 

 

	 	(s)	 each Material Agreement is in full force and effect, unamended. No event has occurred and is continuing which
would constitute a breach of, or a default under, any Material Agreement; 

  

	 	(t)	 the Recipient is not a party to any agreement or instrument or subject to any restriction (including any
restriction set forth in its constating documents) which would reasonably be expected to have a Material Adverse Effect on its material operations, business, Assets or financial conditions; 

 

	 	(u)	 no written statement furnished by or on behalf of or at the direction of the Recipient to the Minister in
connection with the negotiation, consummation or administration of the Contribution contains, as of the time such statements were so furnished, any untrue statement of a material fact or an omission of a material fact as of such time, which material
fact is necessary to make the statements contained therein not misleading and all such statements, taken as a whole, together with this Agreement, do not contain any untrue statement of a material fact or omit a material fact necessary to make the
statements contained herein or therein not misleading; 

  

	 	(v)	 the Recipient is not insolvent; 

 

	 	(w)	 none of the ABL Lenders are Non-Debt Fund Affiliates (as such term is
used and defined in the Intercreditor Agreement); and 

  

	 	(x)	 all information furnished by or on behalf of the Recipient to the Minister for the purposes of, or in
connection with, this Agreement or any other Canada Document, or other transaction contemplated by this Agreement, including any information furnished in the future, is or will be true and accurate in all material respects on the date as of which
such information is dated or certified, and not incomplete by omitting to state any material fact necessary to make such information not misleading at such time in light of then-current circumstances. There is no fact now known to the Recipient
which has had, or could reasonably be expected to have, a Material Adverse Effect 

  

	8.2.	 Affirmative Covenants. The Recipient covenants and agrees that it shall: 

 

	 	(a)	 use the Contribution solely and exclusively to support the Eligible and Supported Costs of the Project and
shall complete the Project as described in the Project description, activities and milestones sections of Annex 1 – Statement of Work in a diligent and professional manner, using qualified personnel, by the Completion Date; for greater
certainty, failure by the Recipient to maintain the “Job” or “FTE” requirements in Annex 1 – Statement of Work shall not be a breach of this Section 8.2(a); 

 

	 	(b)	 obtain the prior written consent of the Minister before making any material change to the Project;

  

	 	(c)	 comply with the federal visibility requirements set out in Annex 4 – Federal Visibility Requirements;

  

	 	(d)	 conduct, in each of its fiscal year, its business in a prudent manner and consistent with good business
practices, except where failure to do so would not reasonably be expected to have a Material Adverse Effect; 

  

	 	(e)	 it shall deliver to the Minister. 

 

	 	(i)	 as soon as possible, and in any event within five (5) days after the Recipient becomes aware of the
occurrence of any Default, a statement of the chief financial officer, treasurer or chief operating officer of the Recipient or any other office acceptable to the Minister setting forth the details of such Default and the action which the Recipient
proposes to take or have taken with respect thereto; 

  
 Page 12 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	 	(ii)	 prompt notice in writing of any default, or event condition or occurrence which with notice or lapse of time,
or both would constitute a default under any agreement in respect of indebtedness to which the Recipient owes (contingently or otherwise) at least $50,000,000 (or the equivalent amount in any other currency), or in respect of Permitted Prior Secured
Indebtedness or the Ontario Facility; 

  

	 	(iii)	 from time to time upon request of the Minister, evidence of maintenance of all insurance required to be
maintained by the Permitted Prior Secured Indebtedness, including such originals or copies as the Minister may reasonably request of policies, certificates of insurance, riders and endorsements relating to such insurance and proof of premium
payments; and 

  

	 	(iv)	 promptly, and in any event within ten (10) days of receipt by the Recipient notice of any suit, proceeding
or similar action commenced or threatened by any Governmental Authority or any other Person, which has had or could reasonably be expected to have a Material Adverse Effect; and 

 

	 	(f)	 preserve and maintain its existence as a corporation; 

 

	 	(g)	 observe and perform all of the covenants, agreements, terms and conditions to be observed and performed by it
under this Agreement or the other Canada Documents; 

  

	 	(h)	 comply with all Applicable Laws, except where such non-compliance would
not reasonably be expected to have a Material Adverse Effect; 

  

	 	(i)	 maintain and preserve all of its Assets used or useful in its businesses in all material respects in good
repair, working order and condition (reasonable wear and tear and obsolete Assets excepted) and in material compliance with environmental laws and, from time to time, make all material needful and proper repairs, renewals, replacements, additions
and improvements thereto, so that the businesses of the Recipient may be properly and advantageously conducted at all time in accordance with prudent business management, provided that the Recipient may, in accordance with the Leases, or with the
approval of the Minister (not to be unreasonably withheld), remove or demolish buildings or structures on the Leased Lands which are no longer in use; 

  

	 	(j)	 except for the filing of renewal statements and the making of other filings by the Minister as a secured party,
at all times from and after the Closing Date, take all action and supply the Minister with all information necessary to maintain the Liens provided for under the Security Documents and confer upon the Minister, the Liens intended to be created
thereby; 

  

	 	(k)	 maintain or cause to be maintained insurance at all times complying with the terms of the Term Loan Credit
Agreement, on or prior to date insurance certificates are delivered to either the Term Agent and ABL Agent, and take all steps necessary to ensure that all such policies show the Minister as loss payee as its interests may appear and additional
insured and promptly furnish or cause to be furnished, upon written request by the Minister, evidence thereof to the Minister. The Recipient will pay or cause to be paid all premiums necessary for such purpose as the same shall become due and will
provide particulars of all such policies and all renewals thereof to the Minister upon request; 

  

	 	(l)	 promptly cure or cause to be cured any defects in the execution and delivery of any of the Canada Documents or
any of the other agreements, instruments or documents contemplated thereby or executed pursuant thereto or any defects in the validity or enforceability of any of the Canada Documents and, at its expense, execute and deliver or cause to be executed
and delivered all such agreements, instruments and other documents as the Minister may consider necessary or desirable for the foregoing purposes; 

  

	 	(m)	 At the Recipient’s cost and expense, upon request of the Minister, duly execute and deliver or cause to be
duly executed and delivered to the Minister such further instruments and do and cause to be done such further acts as may be necessary or proper in the reasonable opinion of the Minister to carry out more effectually the provisions and purposes of
the Canada Documents; 

  
 Page 13 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	 	(n)	 cause any Subsidiary formed or acquired by it or any Guarantor after the date hereof, to, within the timeframe
required and to the extent so required under the Permitted Prior Secured Indebtedness in favour of the Term Lenders and ABL Lenders, enter into an unlimited guarantee in favour of the Minister of the obligations of the Recipient under the Canada
Documents, and grant to the Minister pursuant to a Security Document a first ranking Lien over all Assets of such Subsidiary (subject to the terms of the Intercreditor Agreement and Liens securing the Permitted Prior Secured Indebtedness), as
collateral security for its obligations under such guarantee. The Recipient shall also deliver or cause to deliver to the Minister. 

  

	 	(i)	 a certificate of status, compliance, good standing or like certificate with respect to such Subsidiary issued
by the appropriate Governmental Authority of the jurisdiction of its incorporation; 

  

	 	(ii)	 share certificates representing all the issued and outstanding shares of such Subsidiary, together with a power
of attorney delivered in blank to the Minister, executed by the holders of all shares evidenced by such certificates (subject to the terms of the Intercreditor Agreement); and 

 

	 	(iii)	 any such other security document (s) as reasonably requested by the Minister. Following execution and
delivery of all documentation contemplated by this section, such Subsidiary shall be deemed to be a Guarantor for the purposes of this Agreement and the guarantee and Security Documents entered into by such subsidiary shall be considered Canada
Documents for the purposes of this Agreement; and 

  

	 	(o)	 make capital investments of no less than Six Hundred Million Dollars ($600,000,000) the Capex Plan during the
period from the Eligibility Date to and including March 31, 2023; and 

  

	 	(p)	 develop and implement a workplace diversity plan to the satisfaction of the Minister by no later than
March 31, 2020. 

 8.3. Negative Covenants. The Recipient covenants and agrees that it shall not and shall not permit any of
its Subsidiary to: 
  

	 	(a)	 Amalgamate into or with any other Person, or permit any other Person to amalgamate into or with it, without the
prior written consent from the Minister, except that, if at the time thereof and immediately after giving effect thereto no Event of Default shall have occurred: (i) any Recipient and any Guarantor may amalgamate with any other Guarantor,
(ii) any Subsidiary may amalgamate with any other Subsidiary; and (iii) the Recipient may amalgamate with any other Person if, in the opinion of the Minister, acting reasonably, the successor entity resulting from the amalgamation is
capable of performing the obligations of the Recipient under this Agreement, the other Canada Documents and the Permitted Prior Secured Indebtedness, and provided that, in each case, any transaction pursuant to this section 8.3(a) shall not be
permitted unless the conditions set out in Section 9.02 (Mergers and Consolidations) of the Term Loan Credit Agreement are satisfied; 

  

	 	(b)	 create, incur, assume or suffer to exist on the Assets of the Recipient or any Subsidiary any Lien securing any
indebtedness ranking prior to the Liens granted pursuant to the Security Documents other than Liens securing the Permitted Prior Secured Indebtedness; 

  

	 	(c)	 engage in any material business or activity other than the Business or incur any material liabilities unrelated
to the Business, in each case that would reasonably be expected to have a Material Adverse Effect; 

  

	 	(d)	 enter into any agreement prohibiting the granting of security as contemplated in Subsection 17.3, or the
repayment of any amounts owing in accordance with this Agreement other than as set out in any documentation approved by the Minister pursuant to Subsection 17.1; 

  
 Page 14 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	 	(c)	 acquire supplies, equipment or services for the Project for an amount greater than $500,000 unless a
competitive process is used, including a written request for at least three proposals, written evaluation of bids received and a written agreement with the successful contractor; 

 

	 	(f)	 make any material changes to the Project without the prior written consent of the Minister and the Recipient
abides by the terms and conditions imposed by the Minister in connection with such consent; and 

  

	 	(g)	 provide to the holder of any Permitted Prior Secured Indebtedness any security (other than security in respect
of real property) for, or guarantee of any Person of, any Permitted Prior Secured Indebtedness, unless such security or guarantee has already been granted or is simultaneously granted to the Minister to secure or guarantee the Recipient’s
indebtedness, liabilities and obligations under the Canada Documents. 

 8.4. Covenants incorporated by Reference and Change of
Control 
 Subject to the terms of this Section 8.4, the covenants made by the Recipient to and in favour of the Term Lenders in Sections 8.08 (End
of Fiscal Years), 9.02 (Merger and Consolidation), 9.03 (Restricted Payments), 9.04 (Indebtedness), 9.05 (Restrictions on Distributions from Restricted subsidiaries), 9.06 (Transactions with Affiliate), 9.08 (Limitation on Sales or Assets and
Subsidiary Stock) and 9.11 (Limitation on Activities) of the Term Loan Credit Agreement or the credit agreement dated after the date hereof governing any Permitted Refinancing Term Loans (the “Incorporated Covenants”) are hereby
incorporated by reference into this Agreement, mutatis mutandis, and are made by the Recipient to and in favour of the Minister (and for such purpose any references in an Incorporated Covenant to the “Collateral Agent” or the
“Administrative Agent” or the “Lenders” shall be deemed to include Her Majesty and any references therein to the “Security Documents” or “Credit Documents” shall be deemed to include the Canada Documents). The
event or default in Section 10.0l(i)(Change of Control) of the Term Loan Credit Agreement or the credit agreement dated after the date hereof governing any Permitted Refinancing Term Loans (a “Change of Control”) is hereby
incorporated by reference into this Agreement, mutatis mutandis. Any act, omission, event or circumstance which would constitute a breach of an Incorporated Covenant, or a Change of Control, but which is waived, modified or extended by the Term
Lenders (or the Term Agent on behalf of the Term Lenders pursuant to the express terms of the Term Loans) shall be deemed to be waived, modified or extended to the same extent by the Minister hereunder, and any amendment by the Term Lenders and the
Recipient of an Incorporated Covenant will bind Her Majesty, provided that: 
  

	 	(a)	 the ABL Lenders (or the ABL Agent on their behalf) have waived the breach of or modified or extended, or have
amended in the same manner as the Term Lenders, the covenant contained in the ABL Credit Agreement which is comparable to the Incorporated Covenant subject to such waiver, amendment, modification or extension, or have waived or modified the Change
of Control, as applicable; 

  

	 	(b)	 the Recipient notifies the Minister promptly upon becoming aware of such an act, omission, event or
circumstance or of a potential amendment and upon it seeking a waiver, modification or extension and promptly responds to all inquiries made by the Minister and keeps the Minister fully informed with respect to such matters; 

 

	 	(c)	 the Recipient promptly (and in any event within one (1) Business Day) provides the Minister with a copy of
any waiver, amendment, modification or extension granted or agreed to by the Term Lenders and the ABL Lenders (or the Term Agent or the ABL Agent, as applicable, on their behalf) in respect of any Incorporated Covenant or Change of Control,
including all conditions imposed by the Term Lenders or the ABL Lenders (or the Term Agent or the ABL Agent, as applicable, on their behalf) in connection therewith; 

 

	 	(d)	 if any payment, consideration or further security or assurance is made, paid or granted by the Recipient to the
Term Lenders (or the Term Agent on their behalf) or any other holder of Permitted Prior Secured Indebtedness (or duly authorized agent or representative thereof) in consideration for a waiver, extension, modification or amendment as aforesaid, the
same payment, consideration, further security or assurance will also be made, paid or granted to the Minister, and 

  

	 	(e)	 within thirty (30) days of being notified of a waiver by the Term Lenders of a breach of an Incorporated
Covenant or the occurrence of a Change of Control or of an amendment of an Incorporated Covenant as aforesaid, the Minister may, if it determines (acting reasonably) that such waiver or amendment would cause a Material Adverse Effect or, in the case
of a Change of Control only, negatively impact the Government of Canada’s policy priorities or national interests, so notify the Recipient and the Term Lenders and in such notice may

  
 Page 15 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	 	
terminate the Minister’s obligation to reimburse claims under this Agreement and the Parties will negotiate a new repayment schedule. 

8.5. Increase in Term Loan and/or ABL Facility 
 If the
amount of the Term Loan or the ABL Facility is to be increased beyond the aggregate amount specified in this Agreement’s definition of “Term Loan” or “ABL Facility” respectively, then: 

 

	 	(a)	 The Recipient will promptly notify the Minister of such increase and promptly respond to all inquiries made by
the Minister and keep the Minister fully informed with respect to such matter; 

  

	 	(b)	 The Recipient will immediately provide the Minister with a copy of all documentation effecting the increase;
and 

  

	 	(c)	 Within thirty (30) days of being notified of the increase, the Minister may, if it determines (acting
reasonably) that the increase would cause a Material Adverse Effect so notify the Recipient and in such notice may terminate the Minister’s obligation to reimburse claims under this Agreement and the Parties will negotiate a new repayment
schedule. 

  

	9.	 Official Languages 

The Recipient agrees that any public acknowledgement of the Agency’s support for the Project will be expressed in both official languages.

  

	10.	 Environmental and Other Requirements 

 

	10.1.	 The Recipient represents that the Project is not a “designated project” as defined in the Canadian
Environmental Assessment Act, 2012 (“CEAA”) and is not being carried out on “federal lands” as defined in the CEAA. 

  

	10.2.	 The Recipient agrees to comply in all material respects with all federal, provincial, territorial, municipal
and other Applicable Laws governing the Recipient and the Project, including without limitation, statutes, regulations, by-laws, rules, ordinances and decrees. This includes legal requirements and regulations
relating to environmental protection and the successful implementation of and adherence to any mitigation measures, monitoring or follow-up program, which may be prescribed by federal, provincial, territorial,
municipal bodies. The Recipient will certify to the Minister that it has done so. 

  

	10.3.	 The Recipient will provide the Minister with reasonable access to any Project site, for the purpose of ensuring
that the terms and conditions of any environmental approval are met, and that any required conditions, mitigation measures, monitoring or program follow up have been carried out. 

 

	10.4.	 If as a result of changes to the Project or otherwise, should a subsequent assessment be required in accordance
with CEAA for the Project, the Minister and the Recipient agree that the Minister’s obligations under this Agreement will be suspended from the moment that the Minister informs the Recipient, until (i) a decision statement has been issued
to the Recipient or, if applicable, the Minister has decided that the Project is not likely to cause significant adverse environmental effects, and (ii) if required, an amendment to this Agreement has been signed, setting out any conditions
included in the decision statement. The Recipient agrees to comply with any such conditions. 

  

	10.5.	 Aboriginal Consultation. The Recipient acknowledges that the Minister’s obligation to pay the
Contribution is conditional upon Her Majesty satisfying any obligation that Her Majesty may have to consult with or to accommodate any Aboriginal groups, which may be affected by the terms of this Agreement. 

 

	11.	 Indemnification and Limitation of Liability 

 

	11.1.	 The Recipient shall at all times indemnify and save harmless Her Majesty, its officers, officials, employees
and agents, from and against all claims and demands, losses, costs, damages, actions, suits or other proceedings (including, without limitation, those relating to injury to persons, damage to or loss or destruction of property, economic loss or
infringement of rights) by whomsoever brought or prosecuted, or threatened to be brought or prosecuted, in any manner based upon or occasioned by any injury to persons, damage to or loss or destruction of property, economic loss or infringement of
rights, caused by, or arising directly or indirectly from: 

  
 Page 16 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	 	(a)	 the Project, its operation, conduct or any other aspect thereof; 

 

	 	(b)	 the performance or non-performance of this Agreement, or the breach or
failure to comply with any term, condition, representation or warranty of this Agreement by the Recipient or the Guarantors, its officers, employees and agents; 

 

	 	(c)	 the design, construction, operation, maintenance and repair of any part of the Project; or

  

	 	(d)	 any omission or other wilful or negligent act or delay of the Recipient or a third party and their respective
employees, officers, or agents, except to the extent to which such claims and demands, losses, costs, damages, actions, suits, or other proceedings relate to the negligent act or omission of an officer, official, employee, or agent of Her Majesty,
in the performance of his or her duties. 

  

	11.2.	 The Minister shall have no liability under this Agreement, except for payments of the Contribution, in
accordance with and subject to the provisions of this Agreement. Without limiting the generality of the foregoing, the Minister shall not be liable for any direct, indirect, special or consequential damages, or damages for loss of revenues or
profits of the Recipient. 

  

	11.3.	 Her Majesty, her agents, employees and servants will not be held liable in the event the Recipient enters into
loan, a capital or operating lease or other long-term obligation in relation to the Project for which the Contribution is provided. 

  

	12.	 Default and Remedies 

 

	12.1.	 Event of Default. The Minister may declare that an Event of Default has occurred if:

  

	 	(a)	 the Recipient has failed or neglected to pay Her Majesty any amount due in accordance with this Agreement and
such failure remains unremedied for three (3) Business Days; 

  

	 	(b)	 the Project is abandoned in whole or in any material part; 

 

	 	(c)	 any representation or warranty or certification made or deemed to be made by the Recipient or any Guarantor in
this Agreement or any other Canada Document to which it is a party shall prove to have been incorrect in any material respect when made or deemed to be made and such incorrect representation or warranty or certification continues unremedied for a
period of thirty (30) days after the earlier of the date on which Recipient becomes aware thereof or receives written notice thereof by the Minister; 

  

	 	(d)	 the Recipient or any Guarantor shall fail to perform or observe in any material respect any of the terms,
covenants or agreements contained in this Agreement or in any other Canada Document (other than the terms, covenants and agreements relating to the payment of amounts due), on its part to be performed, observed, or otherwise applicable to it and
shall fail to remedy such failure within thirty (30) days of being notified of same by the Minister; 

  
 Page 17 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	 	(e)	 the Recipient or any Guarantor shall fail to perform or observe any of the covenants set out in
Section 8.3 of this Agreement; 

  

	 	(f)	 the Recipient or any Guarantor shall fail to perform or observe any of the Incorporated Covenants pursuant to
the terms of Section 8.4 of this Agreement (subject to any cure rights provided for in the Term Loan Credit Agreement); 

  

	 	(g)	 any (i) failure by the Recipient or any Guarantor to pay indebtedness exceeding $50,000,000 (or the
equivalent amount in other currencies) or any Permitted Prior Secured Indebtedness or indebtedness under the Ontario Facility at the stated maturity thereof or as a result of which, the creditor may declare the principal thereof to be due and
payable prior to the stated maturity thereof, or any event shall occur and shall continue after the applicable grace period (if any) specified in any agreement or instrument relating to any such debt of the Recipient or any Guarantor to any Person,
the effect of which is to permit the holder of such debt to declare the principal amount thereof to be due and payable prior to its stated maturity, in each case, to the extent such failure or event has not been cured by the Recipient or any
Guarantor or waived by the affected creditor; or (ii) failure by the Recipient or any Guarantor to perform or observe any covenant or agreement to be performed or observed by it contained in any other agreement or in any instrument evidencing
any of its indebtedness exceeding $50,000,000 or any Permitted Prior Secured Indebtedness or any indebtedness under the Ontario Facility, the effect of which is to permit the holder of such indebtedness to declare the principal amount thereof to be
due and payable prior to its stated maturity, to the extent such failure has not been cured by the Recipient or Guarantor or waived by the affected creditor; provided that, in the case of clause (ii) above, any failure by the Recipient or any
Guarantor to perform or observe any covenant or agreement to be performed or observed by it contained in any such agreement or instrument (other than a payment default) will not constitute an Event Of Default unless the agent and/or the lenders
thereunder have demanded repayment of, or otherwise accelerated, any of the indebtedness or other obligations thereunder (or terminated commitments thereunder);. 

 

	 	(h)	 all or any material part of the Assets of the Recipient or any Guarantor are executed, sequestered or
distrained upon and such execution, sequestration or distraint (i) relates to claims in the aggregate in excess of $50,000,000 (or the equivalent amount in other currencies), and (ii) the Recipient or any Guarantor do not discharge the
same or provide for its discharge in accordance with its terms, or procure a stay of execution thereof (by reason of pending appeal or otherwise), or cause the same to be fully bonded, or deposit with the Minister cash collateral or other security
reasonably satisfactory to the Minister in the amount of the claim, within sixty (60)days from the date of entry thereof; 

  

	 	(i)	 final judgment for the payment of money in the aggregate in excess of $10,000,000 (or the equivalent amount in
other currencies) in excess of applicable insurance shall be rendered by a court of competent jurisdiction against the Recipient or any Guarantor and the Recipient or such Guarantor do not discharge same or provide for its discharge in accordance
with its terms, or procure a stay of execution thereof (by reason of a pending appeal or otherwise), or deposit with the Minister cash collateral or other security reasonably satisfactory to the Minister in the amount of the judgement, within forty
five (45) days from the date of entry thereof; 

  

	 	(j)	 the Recipient or any Guarantor shall: (i) apply for or consent to the appointment of, or the taking of
possession by, an interim receiver, a receiver, custodian, administrator, trustee, liquidator or other similar official for itself or for all or any material part of its assets; (ii) generally not pay its debts as such debts become due or admit
in writing its inability to pay its debts generally, or declare any general moratorium on its indebtedness; (iii) institute any proceeding seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, dissolution, winding-up, reorganization, restructuring, arrangement, adjustment, protection, relief or composition of it or its debts under any statute, rule or regulation relating to bankruptcy, insolvency, reorganization,
relief or protection of debtors including without limitation a general assignment for the benefit of creditors or a proposal under the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada) or
the Winding-up and Restructuring Act (Canada) or a similar law of any applicable jurisdiction; or (iv) take any corporate action to authorize any of the actions described in the foregoing;

  
 Page 18 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	 	(k)	 any proceeding against the Recipient or any Guarantor has been commenced to: (i) adjudicate it a bankrupt
or insolvent; (ii) result in the liquidation, dissolution, winding-up, reorganization, restructuring, arrangement, adjustment, protection or relief or composition of it or its debts under any statute,
rule or regulation relating to bankruptcy, insolvency, reorganization, relief or protection of debtors; or (iii) result in the appointment of an interim receiver, receiver, custodian, administrator, trustee, liquidator or other similar official
for it or for all or any material part of its assets and, in each case, such proceeding remains undismissed or unstayed for a period of sixty (60) days or any of the actions sought in such proceeding shall occur; 

 

	 	(l)	 any Canada Document shall become unenforceable other than by reason of the direct act or omission of the
Minister, unless such a deficiency is corrected within a fifteen (15) day period following written notification from the Minister in regard to the deficiency or a thirty (30) day period following such notification if (i) the Recipient
delivers an officers certificate within such initial fifteen (15) day period stating that the Recipient is taking steps in good faith to remedy the deficiency and (ii) the deficiency does not have a Material Adverse Effect on the Security
Documents; or 

  

	 	(m)	 there shall occur a Business Asset Sale in the context of which the obligations of the Recipient and the
Guarantors under the Canada Documents are not assumed (pursuant to documentation satisfactory to the Minister acting reasonably) by a buyer and other parties who are in the Minister’s reasonable opinion capable of performing such obligations.

  

	12.2.	 Remedies. If an Event of Default has occurred, the Minister may immediately exercise any one or more of
the following remedies, in addition to any remedy available at law or equity: 

  

	 	(a)	 terminate the Agreement, including any obligation by the Minister to make any payment under this Agreement,
including any obligation to pay an amount owing prior to such termination; 

  

	 	(b)	 suspend any obligation by the Minister to make any payment under this Agreement, including any obligation to
pay an amount owing prior to such suspension; and 

  

	 	(c)	 require the Recipient to repay forthwith to Her Majesty all or part of any amount outstanding including
interest accrued thereon and all other amounts payable under this Agreement in respect of the Contribution, and those amounts are a debt due to Her Majesty and may be recovered as such. 

 

	12.3.	 The Recipient acknowledges the policy objectives served by the Minister’s agreement to make the
Contribution, that the Contribution comes from the public monies, and that the amount of damages sustained by Her Majesty in an Event of Default is difficult to ascertain and therefore, that it is fair and reasonable that the Minister be entitled to
exercise any or all of the remedies, provided for in this Agreement and to do so in the manner provided for in this Agreement, if an Event of Default occurs and is continuing. 

 

	13.	 Project Assets and Intellectual Property 

 

	13.1.	 The Recipient shall retain title to, and ownership of any assets (including any Foreground Intellectual
Property), the cost of which has been contributed to by the Minister under this Agreement and shall not Dispose of same, without the prior written consent of the Minister. As a condition of such consent, the Minister may require the Recipient to
repay Her Majesty the whole or any part of the Contribution paid to the Recipient hereunder. 

  

	13.2.	 Title to any Foreground Intellectual Property shall vest exclusively in the Recipient. The Recipient shall take
appropriate steps to protect the Foreground Intellectual Property and shall, upon written request, provide information to the Minister in that regard. 

  

	14.	 Miscellaneous 

 

	14.1.	 The Recipient represents and warrants that no member of the House of Commons or Senate of Canada shall be
admitted to any share or part of this Agreement or to any benefit arising from it, that are not otherwise available to the general public. 

  
 Page 19 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	14.2.	 The Recipient confirms that no current or former public servant or public office holder, to whom the Values
and Ethics Code for the Public Service, the Values and Ethics Code for the Public Sector, the Polity on Conflict of Interest and Post-Employment or the Conflict of Interest Act applies, shall derive direct benefit
from the Agreement, including any employment, payments or gifts, unless the provision or receipt of such benefits is in compliance with such codes and the legislation. Where the Recipient employs or has a major shareholder, who is either a current
or former (in the last twelve (12) months) public office holder or public servant in the federal government, the Recipient shall demonstrate compliance with these codes and the legislation. 

14.3. The Recipient represents and warrants that: 
  

	 	(a)	 it has not paid, nor agreed to pay to any person, either directly or indirectly, a commission, fee or other
consideration that is contingent upon the execution of this Agreement, or upon the person arranging a meeting with a public office holder; 

  

	 	(b)	 it will not pay, nor agree to pay to any person, either directly or indirectly, any commission, fee or other
consideration that is contingent upon the person arranging a meeting with a public office holder, 

  

	 	(c)	 the Recipient or any persons who are or have been engaged by the Recipient to communicate or arrange meetings
with public office holders, regarding the Project or this Agreement, are in full compliance with all requirements of the Lobbying Act; and 

  

	 	(d)	 any persons who may be engaged by the Recipient to communicate or arrange meetings with public office holders,
regarding the Project or this Agreement, will at all times be in full compliance with the requirements of the Lobbying Act. 

  

	14.4.	 The Recipient acknowledges that the representations and warranties in this section are fundamental terms of
this Agreement. In the event of breach of these, the Minister may exercise the remedies set out in Subsection 12.2. 

  

	15.	 General 

 

	15.1.	 Debt Due to Canada. Any amount owed to Her Majesty under this Agreement shall constitute a debt due to
Her Majesty and shall be recoverable as such. Unless otherwise specified herein, the Recipient agrees to make payment of any such debt forthwith on demand. 

  

	15.2.	 Interest. Debts due to Her Majesty will accrue interest in accordance with the Interest and
Administrative Charges Regulations, in effect on the due date, compounded monthly on overdue balances payable, from the date on which the payment is due, until payment in full is received by Her Majesty. Any such amount is a debt due to Her
Majesty and is recoverable as such. 

  

	15.3.	 Set-Off. Without limiting the scope of set-off rights provided in the Financial Administration Act. the Minister may set off against the Contribution, any amounts owed by the Recipient to Her Majesty under legislation or contribution agreements
and the Recipient shall declare to the Minister all amounts outstanding in that regard, when making any claim under this Agreement 

  

	15.4.	 No Assignment or Agreement. Neither this Agreement nor any part thereof shall be assigned by the
Recipient or any Guarantor, without the prior written consent of the Minister. Neither this Agreement nor any part thereof shall be assigned by the Minister, without the prior written consent of the Recipient. 

 

	15.5.	 Annual Appropriation. Payment by the Minister of amounts due under this Agreement shall be conditional
on there being a legislated appropriation for the Fiscal Year in which the payment is to be made. The Minister shall have the right to terminate or reduce the Contribution, in the event that the amount of the appropriation is reduced or denied by
Parliament. In the event that any portion of the Contribution has been paid to the Recipient and the legislated appropriation for the Fiscal Year in which such payment is made is not obtained, the Minister shall have the right to recover the amount
so paid from the Recipient. 

  

	15.6.	 Successors and Assigns. This Agreement is binding upon the Recipient, its successors and permitted
assigns. 

  
 Page 20 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	15.7.	 Confidentiality. Subject to the Access to Information Act (Canada), the Privacy Act, the
Library and Archives Act of Canada and Annex 4 – Federal Visibility Requirements, the Parties shall keep confidential and shall not disclose the contents of this Agreement or the transactions contemplated hereby, without the consent of
all Parties. 

  

	15.8.	 International Disputes. Notwithstanding Subsection 15.7 of this Agreement, the Recipient waives any
confidentiality rights to the extent such rights would impede Her Majesty from fulfilling her notification obligations to a world trade panel for the purposes of the conduct of a dispute, in which Her Majesty is a party or a third party intervener.
The Minister is authorized to disclose the contents of this Agreement and any documents pertaining thereto, whether predating or subsequent to this Agreement, or of the transactions contemplated herein, where in the opinion of the Minister, such
disclosure is necessary to the defence of Her Majesty’s interests in the course of a trade remedy investigation conducted by a foreign investigative authority, and is protected from public dissemination by the foreign investigative authority.
The Minister shall notify the Recipient of such disclosure. 

  

	15.9.	 Governing Law. This Agreement shall be subject to and construed in accordance with the laws of the
Province of Ontario and the laws of Canada applicable therein. 

  

	15.10.	 Dispute Resolution. If a dispute arises concerning the application or interpretation of this Agreement,
the Parties shall attempt to resolve the matter through good faith negotiation, and may, if necessary and the Parties consent in writing, resolve the matter through mediation or by arbitration, by a mutually acceptable mediator or arbitration in
accordance with the Commercial Arbitration Code set out in the schedule to the Commercial Arbitration Act (Canada), and all regulations made pursuant to that Act. 

 

	15.11.	 No Amendment. No amendment to this Agreement shall be effective unless it is made in writing and signed
by the Parties hereto. 

  

	15.12.	 No Agency. No provision of this Agreement or action by the Parties will establish or be deemed to
establish any partnership, joint venture, principal-agent or employer-employee relationship in any way, or for any purpose, between Her Majesty and the Recipient, or between Her Majesty and a third party. The Recipient is not in any way authorized
to make a promise, agreement or contract and to incur any liability on behalf of Her Majesty, nor shall the Recipient make a promise, agreement or contract and incur any liability on behalf of Her Majesty, and shall be solely responsible for any and
all payments and deductions, required by the Applicable Laws. 

  

	15.13.	 No Waiver. Any tolerance or indulgence demonstrated by one Party to the other, or any partial or limited
exercise of rights conferred on a Party, shall not constitute a waiver of rights, and unless expressly waived in writing the Parties shall be entitled to exercise any right and to seek any remedy, available under this Agreement or otherwise at law.
Either Party may, by notice in writing, waive any of its rights under this Agreement. 

  

	15.14.	 Public Dissemination. All reports and other information that the Minister collects, manages or has a
right to receive or produce in accordance with this Agreement, or that the Recipient collects, creates, manages and shares with the Minister, shall be deemed to be “Canada Information”. The Minister shall have the right, subject to the
provisions of the Access to Information Act, to release to the public, table before Parliament, or publish by any means, any Canada Information, including such excerpts or summaries of the Canada Information as he may, from time to
time, decide to make. 

  

	15.15.	 No Conflict of Interest. The Recipient and its consultants and any of their respective advisors,
partners, directors, officers, shareholders, employees, agents and volunteers shall not engage in any activity where such activity creates a real, apparent or potential conflict of interest in the sole opinion of the Minister, with the carrying out
of the Project. For greater certainty, and without limiting the generality of the foregoing, a conflict of interest includes a situation where anyone associated with the Recipient owns or has an interest in an organization that is carrying out work
related to the Project. 

  

	15.16.	 Disclose Potential Conflict of Interest. The Recipient shall disclose to the Minister without delay any
actual or potential situation that may be reasonably interpreted as either a conflict of interest or a potential conflict of interest. 

  
 Page 21 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	15.17.	 Severability. If for any reason a provision of this Agreement that is not a fundamental term of the
agreement between the Parties is found to be or becomes invalid or unenforceable, whether in whole or in part, such provision or part thereof declared invalid or unenforceable shall be deemed to be severable and shall be deleted from this Agreement
and all remaining terms and conditions of this Agreement will continue to be valid and enforceable. 

  

	15.18.	 Business Information. Notwithstanding anything else contained in this Agreement the Minister shall be
given the right to the use of any of the Recipient’s publicly available business information about the Project (e.g. brochures, awareness, packages, etc.). 

 

	15.19.	 Tax. The Recipient acknowledges that financial assistance from government programs may have tax
implications for its organization and that advice should be obtained from a qualified tax professional. 

  

	15.20.	 Currency. Unless otherwise indicated, all dollar amounts referred to in this Agreement are to the
currency of Canada. 

  

	16.	 Notice 

 

	16.1.	 Any notice, information or document required under this Agreement shall be effectively given, if delivered or
sent by letter or facsimile (postage or other charges prepaid). Any notice that is delivered shall be deemed to have been received on delivery, any notice sent by facsimile shall be deemed to have been received one (1) working day after being
sent, any notice that is mailed shall be deemed to have been received eight (8) calendar days after being mailed. 

  

	16.2.	 All notices must be sent to the following addresses: 

 

			
	To the Minister	  	To the Recipient
		
	Federal Economic Development Agency	  	Algoma Steel Inc.
	for Southern Ontario	  	105 West Street
	101-139 Northfield Drive West	  	Sault Ste. Marie, ON P6A 7B4
	Waterloo ON N2L 5A6	  	
		  	Attention: Rajat Marwah, CFO
	Attention: Advanced Manufacturing Fund	  	
		  	 Any notice or correspondence to the
 Guarantors
shall be addressed to:

		
		  	c/o Algoma Steel Inc.
		  	105 West Street
		  	Sault Ste. Marie, ON P6A 7B4]
		
		  	Attention: Rajat Marwah, CFO

  

	16.3.	 Each of the Parties may change the address, which they have stipulated in this Agreement by notifying in
writing the other party of the new address, and such change shall be deemed to take effect fifteen (15) calendar days after receipt or such notice. 

  

	17.	 Special Conditions 

17.1 Conditions Precedent. The obligation of the Minister to execute this Agreement and make the first disbursement is subject to the Minister being
satisfied that the following conditions precedent have been met: 

  
 Page 22 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	 	(a)	 the Minister shall have received a certified copy of the constating documents and by-laws of the Recipient; (ii) the resolutions of the board of directors of the Recipient approving the execution of, and the borrowing and other matters contemplated by, this Agreement and approving the
entering into of all other Canada Documents and the completion of all transactions contemplated under them; and (iii) the names and true signatures of its officers authorized to sign this Agreement and the other Canada Documents;

  

	 	(b)	 the Minister shall have received a Certificate of Good Standing in respect of the Recipient issued by the
office of the British Columbia Registrar of Companies; 

  

	 	(c)	 the Minister shall have received a certificate of an authorized signing officer of the Recipient certifying
that, as of the Closing Date, no Material Adverse Effect has occurred; 

  

	 	(d)	 the Minister will have received evidence satisfactory to it that the Recipient has successfully completed the
Acquisition, on terms and conditions satisfactory to the Minister and shall have received a true and complete copy of (i) the Asset Purchase Agreement together with any other related documents and agreements that the Minister may reasonably
request (ii) the certificate of the court-appointed monitor of the Companies Creditors Arrangement Act proceeding relating to the Sellers certifying satisfaction or waiver by the Sellers and the Recipient of all conditions to closing
under the Asset Purchase Agreement; and (iii) the vesting order issued by the Court approving such transaction and vesting title to the Facility and all related business assets in the Recipient and such vesting order shall not have been
appealed and the applicable appeal periods relating thereto shall have expired, and the Minister shall have been satisfied with the terms and conditions of such Asset Purchase Agreement, related documents and agreements and vesting order, acting
reasonably; 

  

	 	(e)	 the Minister shall have received the Security Documents described in Subsection 17.3; 

 

	 	(f)	 the Minister shall have received a certified copy of each Material Agreement; 

 

	 	(g)	 the Minister shall have received a favourable opinion of counsel to the Recipient confirming the due
authorization, execution and delivery of, and the validity and enforceability of, the Canada Documents and such other matters as the Minister may reasonably require; 

 

	 	(h)	 the Minister shall have received a certificate from an authorized signing officer of the Recipient confirming
that (i) the representations and warranties contained in Subsection 8.1 are true and correct on and as of such date, all as though made on and as of such date; (ii) no event or condition has occurred and is continuing, or would result from
disbursing the first claim, which constitutes a Default; and (iii) such disbursement, or otherwise giving effect to such disbursement, will not violate any Applicable Law then in effect; 

 

	 	(i)	 credit agreements and other definitive documentation governing the Term Loan, the ABL Facility, the Port Loan,
the Ontario Facility shall have been executed by the lenders thereunder and the Recipient, such documentation shall have been provided to and be satisfactory to the Minister, acting reasonably, and all conditions precedent to the first advance of
funds under each such credit agreement shall have been satisfied; 

  

	 	(j)	 the Intercreditor Agreement, in a form satisfactory to the Minister, shall have been executed by all parties
thereto and the Minister shall be satisfied that the only Liens securing indebtedness of the Recipient are the Liens governed by the Intercreditor Agreement and that there are no other Liens encumbering the Assets of the Recipient other than Liens
permitted under Permitted Prior Secured Indebtedness; 

  

	 	(k)	 an Interlender Agreement among the Minister, the Term Agent, the ABL Agent, the Port Agent, the Recipient, New
Port LP and the Government of Ontario in its capacity as lender under the Ontario Facility in a form satisfactory to the Minister shall have been executed by all parties thereto; 

 

	 	(l)	 the Original Contribution Agreement shall have been assigned to the Recipient in a manner satisfactory to the
Minister, acting reasonably; 

  

	 	(m)	 [Intentionally deleted]; 

 

	 	(n)	 Her Majesty the Queen in Right of Ontario, as represented by the Minister of Environment, Conservation and
Parks and the Recipient shall have entered into certain agreements pertaining to environmental matters; 

  
 Page 23 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	 	(o)	 the Recipient shall have entered into collective bargaining agreements with its unionized employees on terms
and conditions satisfactory to the Minister, acting reasonably, including arrangements with respect to pension and post-retirement benefit obligations; 

  

	 	(p)	 the Recipient shall have delivered a satisfactory report on the Project from May 2014 to 2019 to the
Minister’s satisfaction; 

  

	 	(q)	 the Recipient shall have provided written evidence satisfactory to the Minister that the funds from other
sources necessary to complete the Project have been committed on terms and conditions satisfactory to the Minister, 

  

	 	(r)	 the Recipient shall have provided to the Minister a direct deposit authorization in the form prescribed by the
Minister; and 

  

	 	(s)	 the Minister shall have received such other certificates and documentation as the Minister may reasonably
request. 

 17.2 Conditions to all Advances. It is a condition precedent to any disbursement under this Agreement that (i) the
representations and warranties contained in this Agreement are true at the time of payment and that the Recipient is not in default of compliance with any terms of this Agreement and (ii) no event of default under the SIF Facility has occurred
that is continuing. 
 17.3 Security. As general and continuing security for the due payment and performance of all present and future indebtedness,
obligations and liabilities of the Recipient and Guarantors to the Minister, the following Security Documents will be provided to the Minister, all in form and substance satisfactory to the Minister: 

 

	 	(a)	 a leasehold charge against the Recipient’s interests in the Leased Lands; 

 

	 	(b)	 a Canadian general security agreement by the Recipient and Algoma Holdings in favour of the Her Majesty,
granting a security interest in all of the Recipient’s and Algoma Holdings’ present and future Assets, other than Excluded Assets (as defined therein); 

 

	 	(c)	 a U.S. general security agreement by Algoma USA in favour of the Her Majesty, granting a security interest in
all of Algoma USA’s present and future Assets, other than Excluded Assets (as defined therein); 

  

	 	(d)	 a Canadian pledge agreement by the Recipient and Algoma Holdings in favour of the Her Majesty, pledging all of
the Recipient’s and Algoma Holdings’ present and future Capital Stock, other than Excluded Assets (as defined therein); and 

  

	 	(e)	 a U.S. pledge agreement by Algoma USA in favour of the Her Majesty, pledging all of Algoma USA’s present
and future Capital Stock, other than Excluded Assets (as defined therein). 

 17.4 Satisfactory to Minister. Subject to the
Intercreditor Agreement, the Security Documents will be in such form or forms, and will be registered in such jurisdictions, as the Minister and its legal counsel may from time to time reasonably require, and in any event in such form or forms as
the security provided to or for the benefit of the Term Agent, ABL Agent, Term Lenders and ABL Lenders, as applicable. 
 17.5 Registration/Further
Assurances 

  
 Page 24 of 43 

 Recipient Name: Algoma Steel Inc. 

 

	 	(a)	 At any time from and after the Closing Date the Minister may, at the expense of the Recipient, register, file
or record the Security Documents or notices in respect of the Security Documents in all offices where such registration, filing or recording is, in the reasonable opinion of the Minister or its counsel, necessary or of advantage to the creation,
perfection and preservation of the security interests arising pursuant to the Security Documents. The Minister may, at the Recipient’s expense, renew such registrations, filings and recordings from time to time as and when required to keep them
in full force and effect. The Recipient acknowledges that the various forms of Security Documents have been prepared based upon the laws of the Province of Ontario and the laws of the State of New York in effect at the date of execution of the
Security Documents and that such laws may change, and that the execution and delivery of different forms of security instruments may therefore be required in order to grant to the Minister the rights intended to be granted by the applicable Security
Documents. The Recipient will upon request from the Minister from time to time, execute and provide to the Minister such additional security instruments and will amend or supplement any Security Documents theretofore provided to the Minister.

  

	 	(i)	 to reflect any changes in Applicable Laws, whether arising as a result of statutory amendments, court decisions
or otherwise; 

  

	 	(ii)	 to facilitate the registration of appropriate forms of Security in all appropriate jurisdictions; or

  

	 	(iii)	 if any entity having delivered security amalgamates with any other Person or enters into any corporate
reorganization; 

 in each case in order to confer upon the Minister such security interests with such priority, as are
intended to be created by such Security Documents subject to the terms of the Intercreditor Agreement. 
  

	 	(b)	 The Recipient will pay or indemnify the Minister against any and all stamp duties, registration fees and
similar Taxes or charges which may be payable or determined to be payable in connection with the execution, delivery, performance, registration or enforcement of any of the Canada Documents or any of the transactions contemplated by any Canada
Document. 

  

	 	(c)	 The provisions of this Subsection 17.5 shall survive the termination of this Agreement and the repayment of all
amounts outstanding. 

 17.6 Intercreditor Agreement 

Notwithstanding anything herein to the contrary, it is acknowledged that the liens and security interests granted to the Her Majesty pursuant to a Security
Document in any Collateral and the exercise of any right or remedy by the Her Majesty with respect to such Collateral are, as between Her Majesty and the other lenders who are parties to the Intercreditor Agreement, subject to the provisions of the
Intercreditor Agreement; provided that (x) the foregoing shall in no event limit the Recipient’s obligations hereunder and it is the intention of the parties hereto that the Collateral securing the obligations and liabilities of the
Recipient and the Guarantors to Her Majesty under the Canada Documents shall be the same (and perfected to the same extent) as the Liens securing the Term Loans (it being understood that Her Majesty may, in its sole discretion, decide not to take
certain assets as Collateral (or perfect such Collateral) on behalf of itself). 

  
 Page 25 of 43 

 Recipient Name: Algoma Steel Inc. 

 

 18.    Guarantee 

 

	18.1.	 Guarantee. In consideration of Her Majesty providing the Contribution, the Guarantors hereby absolutely
and unconditionally guarantee to Her Majesty the prompt payment and performance of the Recipient’s obligations under this Agreement, whether at stated maturity, upon acceleration or otherwise and at all times thereafter, including without
limitation, the completion of the Project and the repayment of the Contribution in accordance with this Agreement. The obligations of the Guarantors hereunder are joint and several. As a result of the forgoing, the Guarantors or the Recipient may be
compelled separately to repay the Contribution or perform any other obligations contained in this Agreement. 

  

	18.2.	 Costs. The Guarantors absolutely and unconditionally guarantee all costs and expenses including, without
limitation, all court costs and legal counsel’s fees and expenses paid or incurred by the Minister in endeavouring to collect all or any part of any amounts due from the Recipient or the Guarantors. 

 

	18.3.	 Taxes. All payments by the Guarantors will be made free and clear of and without withholding or
deduction for any Taxes; provided that if the Guarantor is required to withhold or deduct any Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required withholdings or deductions
(including withholdings or deductions applicable to additional sums payable under this section) Her Majesty receives an amount equal to the sum it would have received had no such withholding or deduction been made (ii) the Guarantor shall make
such withholding or deduction and (iii) the Guarantor shall pay the full amount withheld deducted to the relevant Governmental Authority in accordance with applicable law. 

 

	18.4.	 Waiver. The Guarantee is a guarantee of payment not of collection. The Guarantors waive any right to
require the Minister to sue the Recipient or to enforce its payment against any Collateral. 

  

	18.5.	 Representations. The Guarantors represent to the Minister that they have the power and authority, and
have met all legal requirements to grant the guarantee under Subsection 18.1 and that such guarantee is enforceable against each of them in accordance with its terms. 

 

	18.6.	 Service of Process. The Guarantors irrevocably consent to the service of process in the manner provided
for notices in Section 16.2 of this Agreement. Nothing in this Agreement will affect the right of the Minister to serve process in any other manner permitted by law. 

 

	18.7	 Forum. The Guarantors irrevocably agree that any actions or proceedings arising out of or in connection
with this Agreement may be brought in any court in the Province of Ontario or the Federal Court of Canada as applicable, and submits and attoms to the non-exclusive jurisdiction of each such court.

  
 Page 26 of 43 

 Recipient Name: Algoma Steel Inc. 

 

 19.     Acceptance 

The Recipient agrees that unless the Minister receives a duly executed duplicate copy of this Agreement within thirty (30) calendar days of the date of
execution by the Minister, this Agreement is revocable at the discretion of the Minister. 
 IN WITNESS WHEREOF the Parties hereto have executed this
Agreement through authorized representatives. 
  

									
	HER MAJESTY THE QUEEN IN RIGHT OF CANADA	 		 		 	
					
	Per:	 	 /s/ Navdeep Singh Bains
	 		 	Date:	 	DEC 17 2018
		 	 The Honourable Navdeep Singh Bains

Minister responsible for the Federal Economic Development Agency for Southern Ontario
	 		 		 	

  
 Page 27 of 43 

 Recipient Name: Algoma Steel Inc. 

 

									
	ALGOMA STEEL INC. as Recipient	 		 		 	
					
	Per:	 	 /s/ Kalyan Ghosh
	 		 	Date:	 	December 19, 2018
		 	Kalyan Ghosh	 		 		 	
		 	President and Chief Executive Officer	 		 		 	
				
	I have authority to bind the corporation.	 		 		 	

  
 Page 28 of 42 

 Recipient Name: Algoma Steel Inc. 

 

									
	ALGOMA STEEL INTERMEDIATE HOLDINGS INC. as Guarantor
					
	Per:	 	 /s/ Kalyan Ghosh
	 		 	Date:	 	December 19, 2018
		 	Kalyan Ghosh	 		 		 	
		 	Chief Executive Officer	 		 		 	
				
	I have authority to bind the corporation.	 		 		 	

  
 Page 29 of 42 

 Recipient Name: Algoma Steel Inc. 

 

									
	ALGOMA STEEL USA INC. as Guarantor	 		 		 	
					
	Per:	 	 /s/ Rajat Marwah
	 		 	Date:	 	December 19, 2018
		 	Rajat Marwah	 		 		 	
		 	President, Chief Financial Officer and Secretary	 		 		 	
				
	I have authority to bind the corporation	 		 		 	

  
 Page 30 of 42EX-10.10

 Exhibit 10.10 

EXECUTION COPY 
 Algoma Steel
Inc. 
 a corporation established and 

organized under the laws of the Province of British Columbia 

– and – 
 Her
Majesty the Queen in Right of Ontario, 
 as represented by the Minister of Energy, Northern Development and Mines 

 
  

CREDIT AGREEMENT 
  

 
  

 TABLE OF CONTENTS 

 

							
	 ARTICLE 1 INTERPRETATION
	  	 	1	 
	 1.1
	 	 Defined Terms
	  	 	1	 
	 1.2
	 	 Certain Rules of Interpretation
	  	 	12	 
	 1.3
	 	 Knowledge
	  	 	13	 
	 1.4
	 	 Entire Agreement
	  	 	13	 
	 1.5
	 	 Governing Law
	  	 	14	 
	 1.6
	 	 Accounting Principles
	  	 	14	 
	 1.7
	 	 Exhibits and Schedules
	  	 	14	 
		
	 ARTICLE 2 CREDIT FACILITY
	  	 	15	 
	 2.1
	 	 Availability
	  	 	15	 
	 2.2
	 	 Facility Limits
	  	 	15	 
	 2.3
	 	 Mandatory Repayment
	  	 	15	 
	 2.4
	 	 [Intentionally deleted.]
	  	 	15	 
	 2.5
	 	 Mandatory Prepayment – Cumulative Job Targets
	  	 	15	 
	 2.6
	 	 Optional Prepayments
	  	 	17	 
	 2.7
	 	 Mandatory Prepayment/Reduction of Facility Amount
	  	 	17	 
	 2.8
	 	 Appropriations
	  	 	17	 
	 2.9
	 	 Interest on Amounts Prepaid Pursuant to Sections 2.5 and 2.7
	  	 	18	 
		
	 ARTICLE 3 ADVANCES AND INTEREST ON ADVANCES
	  	 	18	 
	 3.1
	 	 Principal Amount and Availability
	  	 	18	 
	 3.2
	 	 Procedure for Borrowing
	  	 	18	 
	 3.3
	 	 Interest on Advances
	  	 	18	 
	 3.4
	 	 Computations of Interest
	  	 	19	 
		
	 ARTICLE 4 CONDITIONS OF LENDING
	  	 	19	 
	 4.1
	 	 Conditions Precedent to Execution of Agreement
	  	 	19	 
	 4.2
	 	 Conditions Precedent to First Advance
	  	 	21	 
	 4.3
	 	 Conditions Precedent to Subsequent Advances
	  	 	22	 
	 4.4
	 	 No Waiver
	  	 	22	 
		
	 ARTICLE 5 SECURITY
	  	 	22	 
	 5.1
	 	 Security
	  	 	22	 
	 5.2
	 	 Real Property Security Date
	  	 	23	 
	 5.3
	 	 Satisfactory to Lender
	  	 	23	 
	 5.4
	 	 Security Charging Real Property
	  	 	23	 
	 5.5
	 	 Registration/Further Assurances
	  	 	24	 
	 5.6
	 	 Intercreditor Agreement
	  	 	24	 
		
	 ARTICLE 6 REPRESENTATIONS AND WARRANTIES
	  	 	25	 
	 6.1
	 	 Representations and Warranties
	  	 	25	 
		
	 ARTICLE 7 COVENANTS OF THE BORROWER
	  	 	29	 
	 7.1
	 	 Affirmative Covenants
	  	 	29	 
	 7.2
	 	 Negative Covenants
	  	 	33	 

  
 (i) 

							
	 7.3
	 	 Covenants Incorporated by Reference and Change of Control
	  	 	34	 
	 7.4
	 	 Increase in Term Loan and/or ABL Facility
	  	 	35	 
		
	 ARTICLE 8 EVENTS OF DEFAULT AND REMEDIES
	  	 	36	 
	 8.1
	 	 Events of Default
	  	 	36	 
	 8.2
	 	 Acceleration and Termination of Rights
	  	 	38	 
	 8.3
	 	 Remedies Cumulative
	  	 	39	 
	 8.4
	 	 Saving
	  	 	39	 
	 8.5
	 	 Perform Obligations
	  	 	39	 
	 8.6
	 	 Third Parties
	  	 	40	 
	 8.7
	 	 Set-Off or Compensation
	  	 	40	 
	 8.8
	 	 Application of Payments
	  	 	40	 
		
	 ARTICLE 9 MISCELLANEOUS
	  	 	41	 
	 9.1
	 	 Amendment
	  	 	41	 
	 9.2
	 	 Waiver
	  	 	41	 
	 9.3
	 	 Indemnities
	  	 	41	 
	 9.4
	 	 Costs and Expenses
	  	 	42	 
	 9.5
	 	 Interest on Accounts
	  	 	42	 
	 9.6
	 	 Severability
	  	 	43	 
	 9.7
	 	 Language
	  	 	43	 
	 9.8
	 	 Address for Notice
	  	 	43	 
	 9.9
	 	 Public Notices
	  	 	44	 
	 9.10
	 	 Counterparts
	  	 	44	 
	 9.11
	 	 Assignment
	  	 	44	 
	 9.12
	 	 Confidentiality and Non-Disclosure
	  	 	44	 
	 9.13
	 	 Credit
	  	 	44	 

  

	
	SCHEDULE 1.1A MATERIAL AGREEMENTS
	
	SCHEDULE 1.1B OWNED REAL PROPERTY
	
	SCHEDULE 6.1(F) LOCATION OF BUSINESS; NAMES
	
	SCHEDULE 6.1(I) LEASED LANDS
	
	SCHEDULE 6.1(N) AUTHORIZED AND ISSUED CAPITAL
	
	EXHIBIT 1.1A FORM OF ANNUAL WORK SCHEDULE
	
	EXHIBIT 1.1B REPORTS AND OTHER DELIVERABLES
	
	EXHIBIT 3.2 FORM OF BORROWING NOTICE
	
	EXHIBIT 4.3 FORM OF COMPLIANCE CERTIFICATE

  
 (ii) 

 CREDIT AGREEMENT 

CREDIT AGREEMENT dated as of November 30, 2018. 

A M O N G: 
 Algoma Steel Inc., a
corporation established and organized under the laws of the Province of British Columbia 
 (the “Borrower”) 

– and – 
 Her
Majesty the Queen in Right of Ontario, 
 as represented by the Minister of Energy, Northern Development and Mines  

(the “Lender”) 
 RECITALS:

  

	A.	 Pursuant to the Asset Purchase Agreement, the Borrower is acquiring substantially all of the property and
assets owned by Essar Steel Algoma Inc. (“ESAI”) and Essar Steel Algoma Inc. USA, (collectively, with ESAI, the “Sellers”) and used in connection with Sellers’ integrated steel production business (including
without limitation, the production or certain raw steel inputs, steelmaking, and the sale and distribution of steel products), (the “Business”) including the facilities of the Sellers used or operated in connection with the Business
and located in Sault Ste. Marie (the “Algoma Sault Ste Marie Facility”). 

  

	B.	 The Lender has agreed to establish the credit facility herein described in order to assist the Borrower with
financing capital projects at the Algoma Sault Ste Marie Facility that will improve the Algoma Sault Ste Marie Facility’s ability to meet environmental, productivity, competitiveness, collaboration and product and process innovation goals
consistent with the public policies of the Lender and the requirements of the Lender’s programs under which the credit facility herein described is being provided. 

ARTICLE 1 

INTERPRETATION 
  

	1.1	 Defined Terms 

Throughout this Credit Agreement, except as otherwise expressly provided, the following words, terms and expressions shall have the following meanings: 

“2015 CCA Agreements” means that certain $5,000,000.00 Conditional Contribution Agreement between NOHFC and ESAI executed by NOHFC on
July 21, 2015 and ESAI on July 17, 2015 and that certain $25,000,000.00 Conditional Contribution Agreement between MNDM and ESAI executed by MNDM on July 22, 2015 and ESAI on July 17, 2015. 

 “ABL Agent” means Wells Fargo Capital Finance Corporation Canada, in its capacity as
administrative agent and collateral agent for the ABL Lenders, and any successor thereto in such capacity in respect of the ABL Facility. 
 “ABL
Credit Agreement” shall mean the Revolving Credit Agreement, dated as of the Closing Date, among the Borrower, the guarantors from time to time party thereto, the lenders from time to time party thereto, the ABL Agent and the other parties
thereto from time to time party thereto. 
 “ABL Facility” means an asset based credit facility provided by the ABL Lenders to the Borrower
in an aggregate principal amount, and secured by the Collateral, not exceeding the greater of (a) US$312,500,000, with an incremental facility that allows for increasing the initial aggregate principal amount to the “Incremental Cap”
(as defined in the ABL Credit Agreement, including after giving effect to Sections 1.06 and 1.07(c) thereof) and (b) the “Borrowing Base” (as defined in the ABL Credit Agreement as in effect on the Closing Date, but without giving
effect to any “reserves” and regardless of whether the ABL Facility in effect as of the Closing Date is in effect at such time). 
 “ABL
Lenders” means the lenders party to the ABL Facility from time to time. 
 “Acquisition” means the transaction of purchase and
sale contemplated by the Asset Purchase Agreement. 
 “Advances” means the advances made by the Lender under this Credit Agreement pursuant
to Article 3, and “Advance” means any one of such Advances. 
 “Affiliate” means, with respect to any Person (the
“first Person”), a Person that Controls, is Controlled by or is under common Control with, the first Person. 
 “Algoma Capital
Investment Plan” means the Algoma Capital Investment Plan dated November 29, 2018 and approved by the Lender on November 29, 2018, as such Plan may be amended from time to time by the Borrower with the consent of the Lender. 

“Algoma Sault Ste Marie Facility” has the meaning specified in the Preamble. 

“Amounts Outstanding” means, with respect to the Credit Facility, at any time, an amount calculated at such time equal to the sum of the
aggregate principal amount of all outstanding Advances under the Credit Facility. 
 “Annual Work Schedule” means an annual work schedule
substantially in the form attached as Exhibit 1.1A executed and delivered by the Borrower and accepted and executed by the Lender, as such annual work schedule may be amended from time to time by agreement of the Lender and the Borrower, which shall
contain, for each Funded Project, a satisfactory project description, a project budget providing satisfactory details of project costs and confirmed sources of project financing, a project plan setting out milestones or activities and timelines for
such project, a claim schedule with the Borrower’s best estimate of the timing and amount of its anticipated Borrowing requests and the project completion date, provided that the first Annual Work Schedule (the “2017-2019 Annual Work
Schedule”) will cover the period from April 1, 2017 to March 31, 2019. 

  
 - 2 - 

 “Applicable Law” means any law, statute, by-law,
ordinance, decree, requirement, directive, order, license, permit, code or regulation having the force of law, and any applicable determination, interpretation, ruling, order or decree of any Governmental Authority or arbitrator, which is legally
binding. 
 “Asset Purchase Agreement” means that certain asset purchase agreement dated as of July 20, 2018, between the Sellers and
the Borrower, pursuant to which the Borrower will purchase the Algoma Sault Ste Marie Facility along with substantially all of the other property and assets owned by the Sellers and used in connection with the Business, as such agreement may be
amended, amended and restated, supplemented, extended and/or assigned from time to time. 
 “Assets” means, with respect to any Person, any
property, assets and undertakings of such Person of every kind, real and personal, tangible and intangible, and wherever situate, whether now owned or hereafter acquired (and, for greater certainty, includes any equity or like interest in any
Person). 
 “Auditor General” means the Auditor General appointed pursuant to the Auditor General Act (Ontario). 

“Authorization” means, with respect to any Person, any authorization, order, permit, approval, grant, licence, consent, right, franchise,
privilege, certificate, judgment, writ, injunction, award, determination, direction, decree, by-law, rule or regulation of any Governmental Authority having jurisdiction over such Person, whether or not having
the force of Applicable Law. 
 “Borrower” has the meaning specified in the preamble. 

“Borrowing” means a drawdown by the Borrower of an Advance. 

“Borrowing Notice” has the meaning specified in Section 3.2. 

“bps” means 1/100th of one percent. 

“Business” has the meaning specified in the Preamble. 

“Business Asset Sale” means a Disposition of all or substantially all of the assets of the Borrower to a Person that is not an Affiliate of
the Borrower. 
 “Business Day” means any working day Monday to Friday inclusive, excluding statutory and other holidays, namely: New
Year’s Day; Family Day; Good Friday; Easter Monday; Victoria Day; Canada Day; Civic Holiday; Labour Day; Thanksgiving Day; Remembrance Day; Christmas Day; Boxing day; and any other day on which the Province has elected to be closed for
business. 
 “Canada Facility” means a repayable contribution provided by the Government of Canada (through the Federal Economic
Development Agency for Southern Ontario) to the Borrower in the aggregate principal amount of CDN $60,000,000 and secured by the Collateral. 

“Canada SIF Facility” means a contribution to be provided by the Government of Canada (though Strategic Innovation Fund under the auspices of
the Ministry of Innovation, Science and 

  
 - 3 - 

 
Economic Development Canada) to the Borrower in the aggregate principal amount of CDN $30,000,000 in the form of a CDN $15,000,000 repayable contribution and a CDN $15,000,000 grant, and which is
unsecured. 
 “Capital Stock” means, with respect to any Person from time to time, any and all shares, units, trust units, partnership,
membership or other interests, participations or other equivalent rights in the Person’s equity or capital from time to time, however designated and whether voting or non-voting. 

“Change of Control” has the meaning specified in Section 7.3. 

“Claim” means any claim, suit, proceeding, demand, action, cause or right of action, damage, loss, costs, liability, obligation or expense,
or any proceeding, arbitration, mediation or other dispute resolution procedure relating to any of the foregoing, or any orders, writs, injunctions or decrees of any Governmental Authority. 

“Claims Schedules” means the claim schedules set out in the Annual Work Schedules for the Funded Projects. 

“Closing Date” means the date of execution of this Credit Agreement by the Borrower and the Lender. 

“COF Rate” has the meaning specified in Section 3.3. 

“Collateral” means the Assets of the Borrower or any Obligor subject to any Lien pursuant to a Security Document. 

“Compliance Certificate” means a certificate duly completed and executed by the chief executive officer or the chief financial officer or any
other officer or representative of the Borrower acceptable to the Lender substantially in the form of Exhibit 4.3 hereto, together with such changes thereto as the Lender may from time to time reasonably request. 

“Contractor” means a contractor of the Borrower engaged to provide goods or services at the Algoma Sault Ste Marie Facility. 

“Control” means, in respect of a particular Person, the possession, directly or indirectly, of the power to direct or cause the direction of
the management or policies of such Person, whether through the ability to exercise voting power, by contract or otherwise; and “Controlling” and “Controlled” have meanings correlative thereto. 

“Court” means the Ontario Superior Court of Justice – Commercial List. 

“Credit Agreement” means this credit agreement, as executed by the parties, and the Schedules attached hereto, as amended, amended and
restated, supplemented, extended and/or assigned from time to time. 
 “Credit Facility” means this
non-revolving credit facility in the amount of the Facility Amount to be provided by the Lender in favour of the Borrower. 

  
 - 4 - 

 “Default” means an act, omission, occurrence or circumstance which constitutes, or would
constitute unless remedied following the giving of notice or the passage of time as prescribed herein, an Event of Default. 

“Disposition” means with respect to any Asset of any Person, any direct or indirect sale, lease (where such Person is the lessor of such
Asset), assignment, cession, transfer (including any transfer of title or possession), exchange, conveyance, release, gift or other disposition of such Asset; and “Dispose” and “Disposed” have meanings correlative
thereto. 
 “Eligible Project Costs” means the costs paid by the Borrower (or prior to the Closing Date, ESAI) for the purpose of carrying
out the Funded Projects and that (a) have been incurred by the Borrower (or, prior to the Closing Date, ESAI) between April 1, 2017 and the sixth anniversary of the Closing Date; (b) are reasonable and necessary for carrying out the
Funded Projects; (c) are limited to the amounts and cost categories for a Funded Project set out in the corresponding Funded Project Budget and (d) have not previously been reimbursed under the 2015 CAA Agreements. 

“Environmental Authorizations” includes all permits, certificates, approvals, registrations and licenses issued by any Governmental Authority
to the Borrower pursuant to Environmental Laws and required for the operation of the business of the Borrower. 
 “Environmental Laws”
means all Applicable Law relating to the environment, health and safety matters or conditions, Hazardous Materials, pollution or protection of the environment, including Applicable Law relating to (a) on site or
off-site contamination; (b) occupational health and safety relating to Hazardous Materials; (c) chemical substances or products; (d) Releases of pollutants, contaminants, chemicals or other
industrial, toxic or radioactive substances or Hazardous Materials into the environment; and (e) the manufacture, processing, distribution, use, treatment, storage, transport or handling of Hazardous Materials. 

“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities) of the Borrower directly or indirectly resulting from or based upon (a) the violation of any Environmental Laws, (b) the generation, use, handling, collection, treatment, storage,
transportation, recovery, recycling or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials into the environment, or (e) any contract, agreement
or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 
 “ESAI” has the
meaning specified in the Preamble. 
 “Event of Default” has the meaning specified in Section 8.1. 

“Facility Amount” means CDN$60,000,000.00, as such amount may be reduced from time to time pursuant to Article 2 

“First Cumulative Job Target” means a 3 year rolling annual average of at least 2,600 Jobs maintained at the Algoma Sault Ste Marie Facility,
the satisfaction of which is to be determined and calculated at the end of each Fiscal Year in accordance with the following formula: “(A+B+C)/ 3” where: 

  
 - 5 - 

	 	•	 	 “A” is the number of Jobs maintained at the Algoma Sault Ste Marie Facility on the last day of such
Fiscal Year; 

  

	 	•	 	 “B” is the number of Jobs maintained at the Algoma Sault Ste Marie Facility on the last day of the
Fiscal Year immediately prior to the Fiscal Year referred to in respect of “A” above”; and 

  

	 	•	 	 “C” is the number of Jobs maintained at the Algoma Sault Ste Marie Facility on the last day of the
Fiscal Year immediately prior to the Fiscal Year referred to in respect of “B” above. 

 “First Measurement
Period” means the period commencing on April 1, 2018 and ending on March 31, 2021. 
 “Fiscal Year” shall mean the
fiscal year of the Borrower ending March 31 of each calendar year, provided that the Borrower may, upon written notice to the Lender, change its Fiscal Year-end to another date, in which case the Borrower
and the Lender will make any adjustments to this Agreement that are necessary to reflect such change in Fiscal Year. However, the Fiscal Year shall be deemed to end March 31 of each calendar year for the purposes of calculating the First
Cumulative Job Target and the Second Cumulative Job Target, and for all purposes under Section 2.5, notwithstanding any change to the Fiscal Year pursuant to the foregoing proviso. 

“Funded Project Budgets” means the budgets for the Funded Projects set out in the Annual Work Schedules and “Funded Project
Budget” means any one of them. 
 “Funded Project Plans” means the charts setting out the milestones or activities and timelines
for the Funded Projects set out in the Annual Work Schedules and “Funded Project Plan” means any one of them, as applicable. 

“Funded Projects” means the Projects described in the Annual Work Schedules and “Funded Project” means any one of them. For
the avoidance of doubt, no Project which is funded or is to be funded in whole or in part by funds advanced under the Canada Facility or the Canada SIF Facility shall be eligible to be a Funded Project. 

“GAAP” shall have the meaning given to it in Section 1.6. 

“Governmental Authority” means any government or governmental entity, parliament, legislature, or commission or board of any government,
parliament or legislature, or any political subdivision thereof, or any court or (without limitation to the foregoing) any other Applicable Law, regulation or rule-making entity (including, without limitation, any central bank, fiscal or monetary
authority or authority regulating banks or pension plans) having or purporting to have jurisdiction in the relevant circumstances, or any Person acting or purporting to act under the authority of any of the foregoing (including, without limitation,
any arbitrator) or any other authority charged with the administration or enforcement of Applicable Laws. 
 “Guarantee” means each
guarantee of the Borrower’s liabilities and obligations pursuant to the Loan Documents granted by a Guarantor. 

  
 - 6 - 

 “Guarantor” means Algoma Steel Intermediate Holdings Inc., Algoma Steel USA Inc. and any
other Person who becomes a guarantor of the Borrower’s indebtedness, liabilities and obligations hereunder pursuant to Sections 7.1(q) or 7.2(g). 

“Hazardous Materials” means any substance, waste, liquid, gaseous or solid matter, fuel, micro-organism, sound, vibration, ray, heat, odour,
radiation, energy, plasma and organic or inorganic matter, alone or in any combination which is regulated under any applicable Environmental Laws as hazardous waste, a pollutant, a deleterious substance, a contaminant or a source of pollution or
contamination under any Environmental Laws. 
 “Incorporated Covenant” has the meaning specified in Section 7.3. 

“Indemnitee” has the meaning specified in Section 9.3(a). 

“Ineligible Project Costs” means all costs incurred in relation to Funded Projects that are not Eligible Project Costs. 

“Intercreditor Agreement” means an intercreditor agreement dated on or about the date hereof among the Lender, the Borrower, the Guarantors,
the Term Agent, the ABL Agent, and, upon execution of an Intercreditor Agreement Joinder (as defined in the Intercreditor Agreement) pursuant to Section 8.22 of the Intercreditor Agreement, the Government of Canada in its capacity as lender
under the Canada Facility confirming the following order of priority of the Liens granted by the Borrower to such Persons, notwithstanding the order of registration of such Liens: 

 

	(a)	 firstly, the Liens granted to the Term Agent (other than in respect of (i) the Borrower’s current
assets (as defined in accordance with GAAP), which the ABL Agent shall have a first Lien against), and (ii) the Capital Stock of New Port LP and New Port GP owned by the Borrower, which the Port Lender shall have a first Lien against and no
other party to the Intercreditor Agreement shall have any Lien against). 

  

	(b)	 secondly, the Liens granted to the ABL Lender; and 

 

	(c)	 thirdly, the Liens granted to the Lender and the Government of Canada as lender under the Canada Facility
(which shall rank on pari passu basis with one another). 

 “Interest” has the meaning specified in
Section 3.3. 
 “Job” means: 
  

	(a)	 For hourly employees, the number of “Jobs” for hourly paid employees on the Borrower’s or
any Contractor’s payroll, in respect of any Fiscal Year, is an amount equal to “X”, calculated in accordance with the following formula: 

  

					
	 X =
	  	 a
	 	;
	  	2000

 where “a” = the total number of hours worked at the Algoma Sault Ste Marie Facility during such
Fiscal Year by all hourly employees employed by the 

  
 - 7 - 

 
Borrower or any Contractor, including hours worked in overtime or taken as paid vacation, sick leave, and for other similar reasons, and hours for which pay is provided in lieu of notice; and

  

	(b)	 For salaried employees, a “Job” means a full time job of a salaried employee who is employed
by the Borrower or a Contractor at the Algoma Sault Ste Marie Facility. The number of “Jobs” for salaried employees in respect of any Fiscal Year is an amount equal to the number of such salaried employees employed for the entirety of such
Fiscal Year, plus 1/12th times the number of full months worked by salaried employees employed for less than the entirety of such Fiscal Year. 

and “Jobs” in respect of any Fiscal Year means the sum of the amounts specified in clause (a) and (b) above. 

“Lease” has the meaning specified in Section 6.1(i). 

“Leased Lands” has the meaning specified in Section 6.1(i). 

“Lender” has the meaning specified in the preamble. 

“Lien” means any mortgage, debenture, pledge, charge, assignment by way of security, hypothecation, security interest or other lien or charge
(whether fixed, floating or otherwise), title retention, any deposit of moneys under any agreement or arrangement whereby such moneys may be withdrawn only upon fulfilment of any condition as to the discharge of any other indebtedness or any other
arrangement, trust or agreement having the effect of security for the payment of any debt, liability or obligation to any creditor. 
 “Loan
Documents” means this Credit Agreement, the Security Documents, each Guarantee and all other documents to be executed and delivered to the Lender in connection with the Credit Facility. 

“Loss” means any loss whatsoever, whether direct or indirect, including expenses, costs, damages, judgments, penalties, fines, charges,
claims, demands, liabilities and any and all legal fees and disbursements, except any such loss representing loss of profit. 
 “Material Adverse
Effect” means (a) any material adverse effect on the Assets, operations or condition (financial or otherwise) of the Borrower, taken as a whole; (b) any material adverse effect on the ability of the Borrower to perform its
obligations to the Lender under the Loan Documents; (c) any material adverse effect on the legality, validity or enforceability of this Credit Agreement or any of the Loan Documents including the validity, enforceability, perfection or priority
of any Lien created or intended to be created under any of the Security Documents; or (d) any material impairment of the rights or remedies of the Lender under the Loan Documents. 

“Material Agreements” means those agreements of the Borrower or its Subsidiaries, the breach,
non-performance, cancellation or non-renewal of which could reasonably be expected to have a Material Adverse Effect, including those agreements set out in Schedule
1.1A.  
 “Maturity Date” means the tenth (10th) anniversary of the Closing
Date. 

  
 - 8 - 

 “MNDM” means Her Majesty the Queen in Right of Ontario as represented by the Minister of
Northern Development and Mines (other than in its capacity as Lender hereunder). 
 “New Port GP” means Algoma Docks GP Inc., a British
Columbia corporation and the general partner of New Port LP. 
 “New Port LP” means Algoma Docks Limited Partnership, an Ontario limited
partnership. 
 “NOHFC” means Northern Ontario Heritage Fund Corporation. 

“Obligor” means each of the Borrower and any Guarantor. 

“Owned Real Property” means the real property upon which the Algoma Sault Ste Marie Facility is situate, as described in Schedule 1.1B and
the other real property described in Schedule 1.1B. 
 “Participant” has the meaning specified in Section 9.11. 

“Permitted Prior Secured Indebtedness” means indebtedness for borrowed money in respect of: 

 

	(a)	 the Term Loan; 

  

	(b)	 the ABL Facility; 

  

	(c)	 the Port Loan; and 

  

	(d)	 any other indebtedness, the security for which is permitted under the terms of the documentation governing the
Term Loan and/or the ABL Facility to rank pari passu with or in priority to the security granted in connection with the Term Loan or ABL Facility, as the case may be. 

References herein to “the amount of Permitted Prior Secured Indebtedness” means, at any given time, the total committed amount of all credit
facilities or loans falling within the foregoing definition of Permitted Prior Secured Indebtedness, whether drawn or undrawn at such time. 

“Permitted Refinancing Term Loans” shall mean any broadly syndicated indebtedness of the Borrower issued in exchange for, or the net cash
proceeds of which are used to extend, renew, refund, refinance, replace, defease or discharge the Term Loan indebtedness of the Borrower provided that: 
  

	(a)	 the principal amount (or accreted value, if applicable) of such Permitted Refinancing Term Loans does not
exceed the principal amount (or accreted value, if applicable) of the Term Loans being extended, renewed, refunded, refinanced, replaced, defeased or discharged (plus all interest thereon that has been paid-in-kind, all accrued and unpaid interest on such Term Loans being extended, renewed, refunded, refinanced, replaced, defeased or discharged and the amount of all premiums (including tender premiums),
penalties, fees and expenses (including upfront fees and original issue discount), incurred in connection therewith); 

  
 - 9 - 

	(b)	 such Permitted Refinancing Term Loans have a final maturity date no earlier than the final maturity date of the
Term Loans being extended, renewed, refunded, refinanced, replaced, defeased or discharged; 

  

	(c)	 such Permitted Refinancing Term Loans are not secured by any assets other than the assets that secured the Term
Loans being extended, renewed, refunded, refinanced, replaced, defeased or discharged and the holders of such Permitted Refinancing Term Loans (or their agent or other representative) shall become a party to the Intercreditor Agreement;

  

	(d)	 such Permitted Refinancing Term Loans is guaranteed only by those Persons that are guarantors of the Term Loans
being extended, renewed, refunded, refinanced, replaced, defeased or discharged; and 

  

	(e)	 the Incorporated Covenants and “Change of Control” provisions of any Permitted Refinancing Term Loans
(excluding, for greater clarity, pricing, interest, fees, rate floors, premiums, optional prepayment or redemption terms, security and maturity) shall be (i) substantially identical to, or (taken as a whole) no more favorable (as determined by
the Borrower in good faith and certified by the Borrower to the Lender) to the Borrower than those applicable to the refinanced Term Loans, or (ii) reasonably acceptable to the Lender (it being agreed that (x) Incorporated Covenants and
“Change of Control” provisions of any Permitted Refinancing Term Loans that are more favorable to the lenders or the agent of such refinanced Term Loans than those contained in the Term Loan Credit Agreement and are then conformed (or
added) to the Term Loan Credit Agreement pursuant to the applicable refinancing amendment shall thereafter be deemed acceptable to the Lender and (y) with respect to any Incorporated Covenants or “Change of Control” provisions of any
Permitted Refinancing Term Loans, replacing any “Required Lenders Negative Consent” or similar provisions in the Term Loan Credit Agreement on the date hereof with the reasonable discretion of the Term Agent, and/or permitting thresholds,
dollar or ratio “baskets” therein (as of the effective date or issuance of such Permitted Required Term Loans) in an amount not exceeding the amounts set forth in the Term Loan Credit Agreement on the date hereof, shall, in each case of
this clause (y), be deemed acceptable to the Lender). 

 “Person” means any natural person, corporation, limited
liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity. 
 “Port Agent” means
Cortland Capital Market Services LLC, in its capacity as the administrative agent and collateral agent under the Port Loan, or any successor administrative agent and collateral agent under the Port Loan “Port Lender” means,
collectively, GIP Primus, L.P. and Brightwood Loan Services LLC, as investors party to the Port Loan. 
 “Port Loan” means the Senior
Secured Term Loan Credit Agreement among New Port LP, as borrower, New Port GP, as General Partner, the Borrower, as guarantor, the Port Agent and the Port Lender pursuant to which the Port Lender shall advance US$73,000,000 to New Port LP on the
Closing Date in connection with the transactions contemplated under the Asset Purchase Agreement. 

  
 - 10 - 

 “Projects” means the capital investment projects detailed in the Algoma Capital Investment
Plan, which projects are organized into six categories: Algoma Sault Ste Marie Facility – modernization projects, environmental compliance projects, asset life and efficiency enhancement projects, new and upgraded technology projects,
reliability enhancement projects and sustaining capex projects. 
 “Province” means Her Majesty the Queen in Right of Ontario. 

“Real Property Security Date” means the date which is the earlier of (a) the day on which a charge in favour of the Term Lenders is
registered against title to the Owned Real Property to secure the Term Loan, and (b) ninety (90) days after the Closing Date, in each case subject to extension in the reasonable discretion of the Term Agent on the terms set forth in the Term
Loan Credit Agreement on the date hereof to a date that is not more than one hundred and eighty (180) days after the Closing Date. 

“Release” when used as a verb includes release, spill, leak, emit, deposit, discharge, leach, migrate or dispose into the environment and the
term “Release” when used as a noun has a correlative meaning. 
 “Reports” means the financial and progress reports
described in Exhibit 1.1B. 
 “Second Cumulative Job Target” means a 3 year rolling annual average of at least 2,300 Jobs maintained at the
Algoma Sault Ste Marie Facility, the satisfaction of which is to be determined and calculated at the end of each Fiscal Year in accordance with the following formula: “(A+B+C)/ 3” where: 

 

	 	•	 	 “A” is the number of Jobs maintained at the Algoma Sault Ste Marie Facility on the last day of such
Fiscal Year; 

  

	 	•	 	 “B” is the number of Jobs maintained at the Algoma Sault Ste Marie Facility on the last day of the
Fiscal Year immediately prior to the Fiscal Year referred to in respect of “A” above”; and 

  

	 	•	 	 “C” is the number of Jobs maintained at the Algoma Sault Ste Marie Facility on the last day of the
Fiscal Year immediately prior to the Fiscal Year referred to in respect of “B” above. 

 “Second Measurement
Period” means the period commencing on April 1, 2021 and ending on March 31, 2024. 
 “Security Documents” means the
agreements described in Section 5.1 and any other security granted to the Lender as security for the obligations of the Borrower under this Credit Agreement and the other Loan Documents. 

“Subsidiary” means, at any time with respect to a Person, any other person, if at such time such first-mentioned Person owns, directly or
indirectly, more than 50% of the Capital Stock, in such other Person entitled ordinarily to vote in the election of the board of directors of, or Persons performing similar functions for, such other Person. 

  
 - 11 - 

 “Tax Act” means the Income Tax Act (Canada) as it may be amended from time to time.

 “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed
by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 
 “Term Agent” means Cortland
Capital Market Services LLC, in its capacity as administrative agent and collateral agent for the Term Lenders on the date hereof, and any successor thereto in such capacity in respect of the Term Loan. 

“Term Lenders” means the lenders from time to time party to the Term Loan. 

“Term Loan” means collectively, (a) the term loan as of the date hereof in the aggregate principal amount of
(i) U.S.$357,000,000.00 plus (ii) any payment in kind interest pursuant to the exercise of the “PIK Election” (as defined in the Term Loan Credit Agreement as of the Closing Date) being provided by the Term Lenders to the
Borrower, with an incremental facility that allows for increasing the initial aggregate principal amount to the “Incremental Cap” (as defined in the Term Loan Credit Agreement as of the Closing Date but regardless of whether then in effect
on the relevant date of determination, including after giving effect to Sections 1.05 and 1.06(c) thereof) and (b) any Permitted Refinancing Term Loans in respect of the term loan described under clause (a), and in each case secured by the
Collateral. 
 “Term Loan Credit Agreement” shall mean the Term Loan Credit Agreement, dated as of the Closing Date, among the Borrower,
the guarantors from time to time party thereto, the Term Lenders from time to time party thereto, the Term Agent and the other parties thereto from time to time party thereto. 

 

	1.2	 Certain Rules of Interpretation 

In this Credit Agreement and the other Loan Documents: 
  

	 	(a)	 Time – Time is of the essence in and of this Credit Agreement and every part hereof in the
performance of the respective obligations of the parties hereto. Any extension, waiver or variation of any provision of this Credit Agreement shall not be deemed to affect this provision and there shall be no implied waiver of this provision.

  

	 	(b)	 Calculation of Time – Unless otherwise specified, time periods within or following which any
payment is to be made or act is to be done shall be calculated by excluding the day on which the period commences and including the day on which the period ends. Where the last day of any such time period is not a Business Day, such time period
shall be extended to the next Business Day following the day on which it would otherwise end, unless otherwise expressly provided. 

  

	 	(c)	 Business Days – Whenever any action to be taken or payment to be made pursuant to this Credit
Agreement would otherwise be required to be made on a day that is not a Business Day, such action shall be taken or such payment shall 

  
 - 12 - 

	 	
be made on the first Business Day following such day, and such extension of time shall be included in the computation of interest or fees, as the case may be. 

 

	 	(d)	 Currency – Unless otherwise specified, all references to amounts of money in the Loan Documents
refer to the lawful currency of Canada. 

  

	 	(e)	 Headings – The descriptive headings preceding Articles and Sections of this Credit Agreement are
inserted solely for convenience of reference and are not intended as complete or accurate descriptions of the content of such Articles or Sections. The division of this Credit Agreement into Articles and Sections shall not affect the interpretation
of this Credit Agreement. 

  

	 	(f)	 Plurals and Gender – The use of words in the singular or plural, or referring to a particular
gender, shall not limit the scope or exclude the application of any provision of this Credit Agreement to such persons or circumstances as the context otherwise permits. 

 

	 	(g)	 Statutory References – Any reference to a statute shall mean the statute in force as at the date of
this Credit Agreement (together with all regulations promulgated under it), as the same may be amended, re-enacted, consolidated or replaced from time to time, and any successor statute thereto, unless
otherwise expressly provided. 

  

	 	(h)	 Consent – Whenever a provision of this Credit Agreement requires an approval or consent by a party
to this Credit Agreement and notification of such approval or consent is not delivered within the applicable time limit, then, unless otherwise specified, the party whose consent or approval is required shall be conclusively deemed to have withheld
its, his or her approval or consent. 

  

	 	(i)	 Amendments – Unless the context otherwise requires any definition of or reference to any agreement,
instrument or other document (including any definition of or reference to this Credit Agreement) shall be construed as referring to that agreement, instrument or other document as from time to time amended, supplemented, restated or otherwise
modified. 

  

	1.3	 Knowledge 

Whenever any party makes any representation, warranty or other statement to such party’s knowledge, such party will be deemed to have made due inquiry,
including due inquiry by any officer or director of such party or any other Person who has responsibility with respect to the relevant subject matter, into the subject matter of such representation, warranty or other statement. 

 

	1.4	 Entire Agreement 

 

	 	(a)	 This Credit Agreement together with the agreements and other documents to be delivered pursuant to this Credit
Agreement and the other Loan Documents, constitute the entire agreement between the Parties pertaining to the subject matter of the Loan Documents and supersede all prior agreements,

  
 - 13 - 

	 	
understandings, negotiations and discussions, whether oral, written or otherwise, of the Parties. There are no representations, warranties, covenants or other agreements between the parties
hereto in connection with the subject matter of this Credit Agreement except as specifically set forth in this Credit Agreement and any document delivered pursuant to this Credit Agreement. 

 

	 	(b)	 No supplement, modification, amendment, waiver or termination of this Credit Agreement shall be binding unless
executed in writing by the party to be bound thereby. 

  

	1.5	 Governing Law 

This Credit Agreement shall be construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein and shall be treated,
in all respects, as an Ontario contract. 
  

	1.6	 Accounting Principles 

All references to generally accepted accounting principles or “GAAP” mean, as determined by the Borrower in its discretion on notice to the
Lender not less than 30 days prior to the date of the Borrower’s first financial year end following the execution of this Agreement, one of the following three accounting standards, which the Borrower shall use to prepare its audited financial
statements: (a) the Accounting Standards for Private Enterprises which are in effect from time to time in Canada, as published in Part II of the Handbook of the Canadian Institute of Chartered Accountants or any successor thereof (the
“Handbook”), or (b) International Financial Reporting Standards which are in effect from time to time in Canada, as published in Part I of the Handbook ((a) and (b) collectively, the “Accounting
Standards”). 
  

	1.7	 Exhibits and Schedules 

The Schedules and Exhibits described below and appended to this Credit Agreement shall be deemed to be integral parts of this Credit Agreement: 

 

			
	Schedules	  	
		
	Schedule 1.1A	  	Material Agreements
	Schedule 1.1B	  	Owned Real Property
	Schedule 6.1(f)	  	Location of Business; Names
	Schedule 6.1(i)	  	Leased Lands
	Schedule 6.1(n)	  	Authorized and Issued Capital
		
	Exhibits	  	
		
	Exhibit 1.1A	  	Form of Annual Work Schedule
	Exhibit 1.1B	  	Reports and Other Deliverables
	Exhibit 3.2	  	Form of Borrowing Notice
	Exhibit 4.3	  	Form of Compliance Certificate

  
 - 14 - 

 ARTICLE 2 

CREDIT FACILITY 
  

	2.1	 Availability 

  

	 	(a)	 The Lender hereby establishes the Credit Facility in favour of the Borrower. 

 

	 	(b)	 The Credit Facility will be a non-revolving facility such that
repayments of Advances under the Credit Facility will permanently reduce the Facility Amount. 

  

	2.2	 Facility Limits 

The Amounts Outstanding under the Credit Facility shall not at any time exceed the Facility Amount. 

 

	2.3	 Mandatory Repayment 

The Borrower shall repay (subject to Section 8.1 – Events of Default) the Amounts Outstanding (together with all Interest which has accrued on
Advances made thereunder) under the Credit Facility in accordance with an amortization table which will be prepared by the Lender and delivered to the Borrower on or prior to the sixth (6th)
anniversary of the Closing Date and on each subsequent anniversary of the Closing Date. Each such amortization table will cover the twelve month period commencing on the anniversary on which it is delivered and will provide for equal monthly blended
payments of principal and Interest payable on the final Business Day of each month during such period in such amount as, if such payments were continued through to the Maturity Date and the rate of Interest during the period covered by the
amortization table were to remain constant through to the Maturity Date, would result in all Amounts Outstanding and all accrued Interest having been repaid in full by the Maturity Date. Each amortization table as prepared by the Lender will, absent
manifest error, be conclusive and binding upon the Borrower. For the avoidance of doubt, the Borrower will pay all Amounts Outstanding, all Interest accrued thereon and all other amounts due and owing under or by virtue of this Credit Agreement on
or prior to the Maturity Date. 
  

	2.4	 [Intentionally deleted.] 

 

	2.5	 Mandatory Prepayment – Cumulative Job Targets 

 

	 	(a)	 If the First Cumulative Job Target is not satisfied on the last day of any Fiscal Year occurring during the
First Measurement Period, the Borrower shall repay a portion of the Amounts Outstanding determined in accordance with the following formula: 

X = (1 – (Y/2600)) *Z 

where: 
  

	 	•	 	 “X” is the amount of the cash repayment to be made by the Borrower to the Lender;

  
 - 15 - 

	 	•	 	 “Y” is the number that results from the First Cumulative Job Target calculation made on such date of
determination in accordance with the formula referred to in the definition of “First Cumulative Job Target”; and 

  

	 	•	 	 “Z” is the total Amount Outstanding as of the date of determination; 

provided, that, if on the last day of any Fiscal Year occurring during the First Measurement Period, the 3 year rolling annual average
of Jobs as determined in accordance with the formula in the definition of First Cumulative Job Target is less than 2,600 and equal to or greater than 2,500, the Borrower shall not be obligated to repay such amount unless and until, on the last day
of the immediately succeeding Fiscal Year, the 3 year rolling average of Jobs is less than (i) 2,600, if the last day of such immediately succeeding Fiscal Year is in the First Measurement Period or (ii) 2,300, if the last day of such immediately
succeeding Fiscal Year is in the Second Measurement Period. 
  

	 	(b)	 If the Second Cumulative Job Target is not satisfied on the last day of any Fiscal Year occurring during the
Second Measurement Period, the Borrower shall repay to the Lender a portion of the Amounts Outstanding determined in accordance with the following formula: 

X = (1 – (Y/2300)) *Z 

where: 
  

	 	•	 	 “X” is the amount of the cash repayment to be made by the Borrower to the Lender;

  

	 	•	 	 “Y” is the number that results from the Second Cumulative Job Target calculation made on such date of
determination in accordance with the formula referred to in the definition of “Second Cumulative Job Target”; and 

  

	 	•	 	 “Z” is the total Amount Outstanding as of the date of determination; 

provided, that, if on the last day of any Fiscal Year occurring during the Second Measurement Period, the 3 year rolling annual average
of Jobs as determined in accordance with the formula in the definition of Second Cumulative Job Target is less than 2,300 and equal to or greater than 2,200, the Borrower shall not be obligated to repay such amount unless and until, on the last day
of the immediately succeeding Fiscal Year, the 3 year rolling average of Jobs is less than 2,300; provided further, that, if on the last day of the last full Fiscal Year in the Second Measurement Period, the 3 year rolling annual average of
Jobs as determined in accordance with the formula in the definition of Second Cumulative Job Target is less than 2,300 and equal to or greater than 2,200, the Borrower shall not be obligated to repay such amount. 

 

	 	(c)	 For greater certainty, the aggregate amount payable by the Borrower pursuant to this Section 2.5 shall not
exceed the aggregate Amount Outstanding. 

  
 - 16 - 

	 	(d)	 If an amount calculated pursuant to Section 2.5(a) or 2.5(b) exceeds the Amount Outstanding at the time of
such calculation, the Lender may by notice to the Borrower reduce the Facility Amount by the amount of such excess. 

  

	 	(e)	 The Borrower shall repay the amounts calculated in accordance with Sections 2.5(a) or(b), if any, within 90
days after the end of the Fiscal Year to which such payment relates. Any attempt, in the Lender’s reasonably held opinion, by the Borrower to manipulate or artificially inflate the number of Jobs by artificial transactions or schemes shall be
an Event of Default under this Credit Agreement. 

  

	2.6	 Optional Prepayments 

The Borrower may, subject to the provisions of this Credit Agreement, prepay without penalty or bonus Amounts Outstanding under the Credit Facility upon no
less than three Business Days’ notice to the Lender by a notice stating the proposed date and aggregate principal amount of the prepayment or reduction. In such case, the Borrower shall pay to the Lender in accordance with such notice the
amount of such prepayment, together with Interest accrued on the amount prepaid in accordance with Section 3.3. Each partial prepayment or reduction shall be in a minimum aggregate principal amount of $1,000,000 and in an integral multiple of
$500,000, provided that the provisions respecting minimum principal amount and integral multiples referred to in this sentence shall not apply in the case of any partial prepayment or reduction that results in the Credit Facility being repaid or
cancelled in full. 
  

	2.7	 Mandatory Prepayment/Reduction of Facility Amount 

The Borrower shall not use the proceeds of Advances for any Eligible Project Costs for which the Borrower is in receipt of funds from other sources. If funds
are received for the Funded Projects from sources other than, or in amounts greater than, those set out in the corresponding Funded Project Budgets: (i) the Borrower shall promptly give notice thereof to the Lender and (ii) the Lender may,
in its sole discretion and whether it has received such notice or not, reduce the Facility Amount by the amount of such funds, or demand the repayment of a portion of the Amount Outstanding in an amount equal to such additional funds, whereupon the
amount demanded by the Lender shall immediately become due and payable. 
  

	2.8	 Appropriations 

The Borrower acknowledges that the Lender has received the necessary appropriation from the Ontario Legislature pursuant to the Financial Administration
Act (Ontario) only for the making of Advances in the aggregate amount of CDN $30,000,000.00, and that until a further appropriation is received the Borrower may not submit Borrowing Notices which would cause the aggregate Amounts Outstanding to
exceed CDN $30,000,000.00. If pursuant to the Financial Administration Act (Ontario) the Lender does not receive the necessary appropriation(s) from the Ontario Legislature to make Advances in an aggregate amount totalling the Facility Amount
the Lender will have the right upon notice to the Borrower to reduce the Facility Amount to the aggregate amount for which appropriations have been received. 

  
 - 17 - 

	2.9	 Interest on Amounts Prepaid Pursuant to Sections 2.5 and 2.7. 

A prepayment of all or a portion of the Amount Outstanding pursuant to Section 2.5 or 2.7 will be accompanied by a payment of the Interest which has
accrued on the amount of principal being prepaid. 
 ARTICLE 3 

ADVANCES AND INTEREST ON ADVANCES 
  

	3.1	 Principal Amount and Availability 

The Lender shall make Advances to the Borrower in amounts equal to 50% of the Eligible Project Costs paid by the Borrower and claimed in a Borrowing Notice
delivered pursuant to Section 3.2, and in the aggregate up to the Facility Amount provided that no Borrowing Notice shall be delivered and no Advance shall be made following the sixth (6th)
anniversary of the Closing Date. 
 Borrowings under the Credit Facility will be subject to Section 3.2 and to the conditions precedent set out in
Article 4. 
  

	3.2	 Procedure for Borrowing 

Each Advance shall subject to Section 3.1 be made on 30 Business Days’ prior notice, given not later than 11:00 a.m. (Toronto time) by the Borrower
to the Lender. Each notice of an Advance (a “Borrowing Notice”) shall be in substantially the form of Exhibit 3.2, shall be irrevocable and binding on the Borrower once given by it to the Lender, and shall specify
(i) the requested date of the Borrowing; and (ii) the aggregate amount of the Borrowing. Each Borrowing Notice will be accompanied by copies of all invoices and cancelled cheques relating to such costs or such other evidence reasonably
satisfactory to the Lender of payment of the Eligible Project Costs claimed in such Borrowing Notice. Further, if any portion of the Eligible Project Costs claimed in a Borrowing Notice represents costs of internal technical labour, such Borrowing
Notice will also be accompanied by a labour attestation (in a form to be provided by the Lender) itemizing the applicable individuals, their hours worked, and the split between their wages and benefits. Upon receipt by the Lender of the Borrowing
Notice and the aforementioned materials fulfilment of the applicable conditions set forth in Article 4 and expiration of the 30 Business Day notice period referred to above, the Lender will make such funds available to the Borrower, subject to the
terms and conditions of this Credit Agreement. 
  

	3.3	 Interest on Advances 

Interest shall accrue on the unpaid principal amount of each Advance made under the Credit Facility from the date of such Advance until such principal amount
is repaid in full, at an annual interest rate equal to the greater of (i) 2.5% per annum; and (ii) the Lender’s cost of funds for a ten-year non-amortizing
bond, inclusive of fees and commissions, (the “COF Rate”), in each case calculated and compounded monthly (“Interest”). On the Closing Date and on each anniversary thereof the Lender will determine and notify the Borrower
of the COF Rate as of such date, and the COF Rate of which the Borrower is so notified shall be deemed to be the COF Rate throughout the following twelve month period. The Lender’s determination of the Interest

  
 - 18 - 

 
payable in accordance with this Section 3.3 shall, absent manifest error, be conclusive and binding upon the Borrower. 

 

	3.4	 Computations of Interest 

 

	 	(a)	 All computations of Interest shall be made by the Lender taking into account the actual number of days
occurring in the period for which such Interest is payable pursuant to Section 3.3, and a year of 365 days or 366 days, as the case may be, and using the nominal rate method of calculation, and will not be calculated using the effective rate
method of calculation or on any other basis that gives rise to the principle of deemed re-investment of interest. 

  

	 	(b)	 No provision of this Credit Agreement shall have the effect of requiring the Borrower to pay interest (as such
term is defined in section 347 of the Criminal Code (Canada)) at a rate in excess of 60% per annum, taking into account all other amounts which must be taken into account for the purpose thereof and, to such extent, the Borrower’s
obligation to pay interest hereunder shall be so limited. 

 ARTICLE 4 

CONDITIONS OF LENDING 
  

	4.1	 Conditions Precedent to Execution of Agreement 

The obligation of the Lender to execute this Credit Agreement is subject to Lender being satisfied that the following conditions precedent have been met: 

 

	 	(a)	 the Lender shall have received a certified copy of (i) the constating documents and by-laws of the Borrower; (ii) the resolutions of the board of directors of the Borrower approving the execution of, and the borrowing and other matters contemplated by, this Credit Agreement and approving the
entering into of all other Loan Documents and the completion of all transactions contemplated under them; and (iii) the names and true signatures of its officers authorized to sign this Credit Agreement and the other Loan Documents;

  

	 	(b)	 the Lender shall have received a Certificate of Good Standing in respect of the Borrower issued by the office
of the British Columbia Registrar of Companies; 

  

	 	(c)	 the Lender shall have received a certificate of an authorized signing officer of the Borrower certifying that,
as of the Closing Date, no Material Adverse Effect has occurred; 

  

	 	(d)	 the Lender will have received evidence satisfactory to it that the Borrower has successfully completed the
Acquisition, on terms and conditions satisfactory to the Lender and shall have received a true and complete copy of (i) the Asset Purchase Agreement together with any other related documents and agreements that the Lender may reasonably request
(ii) the certificate of the court-appointed monitor of the Companies Creditors Arrangement Act proceeding relating to the Sellers certifying satisfaction or waiver by the Sellers and the Borrower of all

  
 - 19 - 

	 	
conditions to closing under the Asset Purchase Agreement; and (iii) the vesting order issued by the Court approving such transaction and vesting title to the Algoma Sault Ste Marie Facility
and all related business assets in the Borrower and such vesting order shall not have been appealed and the applicable appeal periods relating thereto shall have expired, and the Lender shall have been satisfied with the terms and conditions of such
Asset Purchase Agreement, related documents and agreements and vesting order, acting reasonably; 

  

	 	(e)	 the Lender shall have received the Guarantees and Security Documents described in Section 5.1;

  

	 	(f)	 the Lender shall have received a certified copy of each Material Agreement; 

 

	 	(g)	 the Lender shall have received a favourable opinion of counsel to the Borrower confirming the due
authorization, execution and delivery of, and the validity and enforceability of, the Loan Documents and such other matters as the Lender may reasonably require; 

 

	 	(h)	 the Lender shall have received a certificate from an authorized signing officer of the Borrower confirming that
(i) the representations and warranties contained in Article 6 are true and correct on and as of such date, all as though made on and as of such date; (ii) no event or condition has occurred and is continuing, or would result from such
Advance or giving effect to such Advance, which constitutes a Default; and (iii) such Advance, or otherwise giving effect to such Advance, will not violate any Applicable Law then in effect; 

 

	 	(i)	 credit agreements and other definitive documentation governing the Term Loan, the ABL Facility and the Port
Loan shall have been executed by the lenders thereunder and the Borrower, such documentation shall have been provided to and be satisfactory to the Lender, acting reasonably, and all conditions precedent to the first advance of funds under each such
credit agreement shall have been satisfied; 

  

	 	(j)	 the Intercreditor Agreement, in a form satisfactory to the Lender, shall have been executed by all parties
thereto and the Lender shall be satisfied that the only Liens securing indebtedness of the Borrower are the Liens governed by the Intercreditor Agreement and that there are no other Liens encumbering the Assets of the Borrower other than Liens
permitted under Permitted Prior Secured Indebtedness; 

  

	 	(k)	 an Interlender Agreement among the Lender, the Term Agent, the ABL Agent, the Port Agent, the Borrower and New
Port LP in a form satisfactory to the Lender shall have been executed by all parties thereto; 

  

	 	(l)	 the 2015 CCA Agreements shall have been terminated pursuant to a mutual termination and release agreement
satisfactory to the Lender, acting reasonably; 

  

	 	(m)	 Her Majesty the Queen in Right of Ontario, as represented by the Minister of Environment, Conservation and
Parks and the Borrower shall have entered into certain agreements pertaining to environmental matters; 

  
 - 20 - 

	 	(n)	 the Borrower shall have entered into collective bargaining agreements with its unionized employees on terms and
conditions satisfactory to the Lender, acting reasonably, including arrangements with respect to pension and post-retirement benefit obligations; 

  

	 	(o)	 the Lender shall have received the Algoma Capital Investment Plan; and 

 

	 	(p)	 the Lender shall have received such other certificates and documentation as the Lender may reasonably request.

  

	4.2	 Conditions Precedent to First Advance 

The obligation of the Lender to make the first Advance under the Credit Facility is subject to the Lender being satisfied that the following conditions
precedent have been met: 
  

	 	(a)	 Credit agreements and other definitive documentation governing the Canada Facility shall have been executed by
the lender thereunder and the Borrower, such documentation shall have been provided to and be satisfactory to the Lender, acting reasonably, and all conditions precedent to the first advance of funds under such agreement shall have been satisfied;

  

	 	(b)	 the lender under the Canada Facility shall have executed an Intercreditor Agreement Joinder (as defined in the
Intercreditor Agreement) pursuant to Section 8.22 of the Intercreditor Agreement; 

  

	 	(c)	 the Lender shall have received a certificate from an authorized signing officer of the Borrower confirming that
(i) the representations and warranties contained in Article 6 are true and correct on and as of the date of the making of the such Advance all as though made on and as of such date; (ii) no event or condition has occurred and is
continuing, or would result from such Advance or giving effect to such Advance, which constitutes a Default; and (iii) such Advance, or otherwise giving effect to such Advance, will not violate any Applicable Law then in effect;

  

	 	(d)	 the Borrower shall have delivered a satisfactory executed 2017-2019 Annual Work Schedule to the Lender and the
Lender shall have accepted and executed same; 

  

	 	(e)	 the lender under the Canada Facility has not exercised any right it has thereunder to terminate its obligation
to reimburse claims under the Canada Facility; 

  

	 	(f)	 the Lender shall have received satisfactory evidence that all required permits, approvals and municipal
authorizations have been obtained for the Funded Projects referred to in the 2017-2019 Annual Work Schedule; 

  

	 	(g)	 all of the conditions precedent set out in Section 4.1 have been met to the satisfaction of the Lender;

  

	 	(h)	 the Lender shall have received a Compliance Certificate from the Borrower dated the date of the applicable
Borrowing Notice in respect of such Advance; and 

  
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	 	(i)	 the Borrower will have delivered a Borrowing Notice and the other materials required under Section 3.2.

  

	4.3	 Conditions Precedent to Subsequent Advances 

Each Advance hereunder shall be subject to the conditions precedent that on the date of such Advance, and immediately after giving effect thereto and to the
application of any proceeds from it, (i) the representations and warranties contained in Article 6 are true and correct on and as of such date, all as though made on and as of such date; (ii) no event or condition has occurred and is
continuing, or would result from such Advance or giving effect to such Advance, which constitutes a Default; (iii) such Advance, or otherwise giving effect to such Advance, will not violate any Applicable Law then in effect, (iv) the
lender under the Canada Facility has not exercised any right it has thereunder to terminate its obligation to reimburse claims under the Canada Facility; (v) the Lender shall have received a Compliance Certificate from the Borrower dated the
date of the applicable Borrowing Notice; (vi) the Borrower shall have delivered a satisfactory executed Annual Work Schedule to the Lender for the Fiscal Year in which the applicable Borrowing Notice has been delivered and the Lender shall have
accepted and executed same; (vii) the Lender shall have received satisfactory evidence that all material permits, approvals and municipal authorizations which, as at the date of the Advance, are required for such Funded Projects and are
possible to have been obtained by the Borrower at such time, have been obtained; and (viii) the Borrower will have delivered a Borrowing Notice and the other materials required by Section 3.2. 

 

	4.4	 No Waiver 

The making of an Advance without the fulfilment of one or more conditions set forth in Sections 4.1, 4.2 or 4.3 shall not constitute a waiver of any such
condition, and the Lender reserves the right to require fulfilment of such condition in connection with any subsequent Advance. 
 ARTICLE
5 
 SECURITY 
  

	5.1	 Security 

Subject to Section 5.2, as general and continuing security for the due payment and performance of all present and future indebtedness, obligations and
liabilities of the Obligors to the Lender, the following Security Documents will be provided to the Lender, all in form and substance satisfactory to the Lender: 
  

	 	(a)	 a secured charge (including a specific assignment of any leases) on and against the Owned Real Property
including (i) a Demand Debenture by the Borrower in favour of the Lender with respect to the Owned Real Property; and (ii) a Debenture Delivery Agreement by the Borrower in favour of the Lender (collectively, the
“Charge”); 

  

	 	(b)	 a leasehold charge against the Borrower’s interests in the Leased Lands, including (i) a Demand
Debenture by the Borrower in favour of the Lender with respect to 

  
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the Borrower’s interest in the Leased Lands; and (ii) a Debenture Delivery Agreement by the Borrower in favour of the Lender ; 

 

	 	(c)	 a Canadian general security agreement by the Borrower and Algoma Steel Intermediate Holdings Inc. in favour of
the Lender, granting a security interest in all of such Obligors’ present and future Assets, other than Excluded Assets (as defined therein); 

  

	 	(d)	 a U.S. general security agreement by Algoma Steel USA Inc. in favour of the Lender, granting a security
interest in all of the Algoma Steel USA Inc.’s present and future Assets, other than Excluded Assets (as defined therein); 

  

	 	(e)	 a Canadian pledge agreement by the Borrower and Algoma Steel Intermediate Holdings Inc. in favour of the
Lender, pledging all of such Obligors’ present and future Capital Stock, other than Excluded Assets (as defined therein); 

  

	 	(f)	 a U.S. pledge agreement by the Borrower in favour of the Lender, pledging all of the Borrower’s present
and future Capital Stock, other than Excluded Assets (as defined therein); and 

  

	 	(g)	 a Canadian intellectual property security agreement by the Borrower in favour of the Lender granting a security
interest in the Borrower’s intellectual property. 

  

	5.2	 Real Property Security Date 

Notwithstanding Section 5.1, the Charge will not be executed and delivered or registered until the Real Property Security Date. On the Real Property
Security Date, the Borrower will execute and deliver to and in favour of the Lender the Charge (which will be identical to the secured charge on and against the Owned Real Property granted to the ABL Lenders and Term Lenders) and the Charge will be
registered against the Owned Real Property 
  

	5.3	 Satisfactory to Lender 

Subject to Section 5.2 and the Intercreditor Agreement, the Security Documents will be in such form or forms, and will be registered in such
jurisdictions, as the Lender and its legal counsel may from time to time reasonably require and in any event in such form or forms as the security provided to or for the benefit of the Term Agent, ABL Agent, Term Lenders and ABL Lenders, as
applicable. 
  

	5.4	 Security Charging Real Property 

Notwithstanding anything to the contrary contained in any of the Loan Documents, to the extent that the Liens created by the Security Documents charge real
property or any interest therein such Liens shall secure interest after the occurrence of an Event of Default at the same rates as those in effect immediately prior to such occurrence. 

  
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	5.5	 Registration/Further Assurances 

 

	 	(a)	 At any time from and after the Closing Date (or after the Real Property Security Date in the case of the
Charge) the Lender may, at the expense of the Borrower, register, file or record the Security Documents or notices in respect of the Security Documents in all offices where such registration, filing or recording is, in the reasonable opinion of the
Lender or its counsel, necessary or of advantage to the creation, perfection and preservation of the security interests arising pursuant to the Security Documents. The Lender may, at the Borrower’s expense, renew such registrations, filings and
recordings from time to time as and when required to keep them in full force and effect. The Borrower acknowledges that the various forms of Security Documents have been prepared based upon the laws of the Province of Ontario and the laws of the
State of New York in effect at the date of execution of the Security Documents and that such laws may change, and that the execution and delivery of different forms of security instruments may therefore be required in order to grant to the Lender
the rights intended to be granted by the applicable Security Documents. The Borrower will upon request from the Lender from time to time, execute and provide to the Lender such additional security instruments and will amend or supplement any
Security Documents theretofore provided to the Lender: 

  

	 	(i)	 to reflect any changes in Applicable Laws, whether arising as a result of statutory amendments, court decisions
or otherwise; 

  

	 	(ii)	 to facilitate the registration of appropriate forms of Security in all appropriate jurisdictions; or

  

	 	(iii)	 if any entity having delivered security amalgamates with any other Person or enters into any corporate
reorganization; 

 in each case in order to confer upon the Lender such security interests with such priority, as are
intended to be created by such Security Documents subject to the terms of the Intercreditor Agreement. 
  

	 	(b)	 The Borrower will pay or indemnify the Lender against any and all stamp duties, registration fees and similar
Taxes or charges which may be payable or determined to be payable in connection with the execution, delivery, performance, registration or enforcement of any of the Loan Documents or any of the transactions contemplated by any Loan Document.

  

	 	(c)	 The provisions of this Section 5.5 shall survive the termination of this Credit Agreement and the
repayment of all Amounts Outstanding. 

  

	5.6	 Intercreditor Agreement 

Notwithstanding anything herein to the contrary, it is acknowledged that the liens and security interests granted to the Lender pursuant to a Security Document
in any Collateral and the exercise of any right or remedy by the Lender with respect to such Collateral are, as between the Lender and other lenders who are parties to the Intercreditor Agreement, subject to the

  
 - 24 - 

 
provisions of the Intercreditor Agreement; provided that (x) the foregoing shall in no event limit the Borrower’s obligations hereunder and it is the intention of the parties hereto
that the Collateral securing the obligations and liabilities of the Obligors to the Lender under the Loan Documents shall be the same (and perfected to the same extent) as the Liens securing the Term Loans (it being understood that the Lender may,
in its sole discretion, decide not to take certain assets as Collateral (or perfect such Collateral) on behalf of itself). 
 ARTICLE 6

 REPRESENTATIONS AND WARRANTIES 
  

	6.1	 Representations and Warranties 

The Borrower represents and warrants to the Lender, with effect as of and from the Closing Date, and acknowledges and confirms that the Lender is relying
thereon without independent inquiry in providing Advances hereunder, that: 
  

	 	(a)	 Incorporation and Qualification. The Borrower is a corporation duly incorporated, continued or
amalgamated and is validly existing under the laws of British Columbia and is duly qualified, licensed or registered to carry on business under the laws of the Province of Ontario and any other Applicable Law in all jurisdictions in which the nature
of its Assets or business makes such qualification necessary, except where the failure to be so qualified, licensed or registered would not reasonably be expected to have a Material Adverse Effect. 

 

	 	(b)	 Power. The Borrower has all requisite corporate power and authority to (i) own and operate its
Assets and to carry on the business carried on by it; and (ii) to enter into and perform its obligations under this Credit Agreement and the other Loan Documents to which it is a party. 

 

	 	(c)	 Conflict With Other Instruments. The execution and delivery of the Loan Documents by the Borrower and
the performance by the Borrower of its obligations under them and compliance with the terms, conditions and provisions thereof, will not (i) conflict with or result in a breach of any of the terms, conditions or provisions of (A) its
constating documents, (B) any Applicable Law, or (C) any material contractual restriction binding on or affecting it or its properties, to the extent such restriction could be reasonably expected to have a Material Adverse Effect; or
(ii) result in, require or permit (A) the imposition of any Lien in, on or with respect to the Assets now owned or hereafter acquired by it (other than pursuant to the Security Documents or which is a Lien permitted under Permitted Prior
Secured Indebtedness), (B) the acceleration of the maturity of any material indebtedness binding on or affecting it, or (C) any third party to terminate or acquire any rights materially adverse to the Borrower under any Material Agreement
except any such imposition, termination or acquisition which would not reasonably be expected to have a Material Adverse Effect. 

  

	 	(d)	 Authorization, Governmental Approvals, etc. The execution and delivery of each of the Loan Documents by
the Borrower and the performance by the Borrower of its obligations hereunder and thereunder have been duly authorized by all necessary corporate action. 

  
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	 	(e)	 Execution and Binding Obligation. This Credit Agreement and the other Loan Documents (other than as
provided in Section 5.2) have been duly executed and delivered by the Borrower and constitute legal, valid and binding obligations of the Borrower, enforceable against it in accordance with their respective terms, subject only to any limitation
under Applicable Law relating to (i) bankruptcy, insolvency, reorganization, moratorium or creditors’ rights generally; and (ii) the discretion that a court may exercise in the granting of equitable remedies. 

 

	 	(f)	 Location of Business; Names. The only jurisdictions (or registration districts within such
jurisdictions) in which the Borrower has any place of business or stores any material tangible personal property are as set forth in Schedule 6.1(f). Schedule 6.1(f) also sets out a complete and accurate list of the full and correct name of the
Borrower, including any French and English forms of name. 

  

	 	(g)	 Material Authorizations. The Borrower possesses all Authorizations as may be necessary to properly
conduct its business, the failure of which to possess would reasonably be expected to have a Material Adverse Effect. All such Authorizations are in good standing and the Borrower is not in material default under any of them, except where the
failure of such Authorizations to be in good standing or any such material default would not reasonably be expected to have a Material Adverse Effect. 

  

	 	(h)	 Ownership of Property. The Borrower owns the Owned Real Property and its other Assets with good and
marketable title thereto, free and clear of all Liens, except for Liens permitted under Permitted Prior Secured Indebtedness. As of the date hereof, the Borrower does not own any interests in any real property other than the Owned Real Property
listed in Schedule 1.1B. The Security Documents and the Liens securing Permitted Prior Secured Indebtedness described in clauses (a) and (b) of the definition of that term will rank in the order of priority set out in the Intercreditor
Agreement. 

  

	 	(i)	 Leased Lands. As of the date hereof, the real property listed in Schedule 6.1(i) are the only leased
lands of the Borrower (the “Leased Lands”). Each lease of Leased Lands (each, a “Lease”) is in full force and effect, unamended except as permitted under this Credit Agreement. Each Lease is in good standing in all
material respects and all amounts owing under them have been paid by the Borrower except any such amount the payment obligation in respect of which is in bona fide dispute. 

 

	 	(j)	 Compliance with Laws. The Borrower is in compliance with all Applicable Law, non-compliance with which could reasonably be expected to have a Material Adverse Effect. 

  

	 	(k)	 Use of Real Property. The uses to which the Owned Real Property and Leased Lands are being put by the
Borrower are not in breach, in any material respect, of any Environmental Laws or other Applicable Law or official plans. 

  

	 	(l)	 Environmental Matters. Except as would not reasonably be expected to result in a Material Adverse
Effect, the Borrower’s business, the Owned Real Property, the 

  
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Leased Lands and other Assets (i) are in material compliance with all Environmental Laws; (ii) possess, and are operated in compliance with, all Environmental Authorizations which are
required for the operation of its business; and (iii) are not subject to any present fact, condition or circumstance that could result in any material liability under any Environmental Laws. No Hazardous Materials are stored, disposed of or
otherwise used by the Borrower in violation of any Environmental Law. 

  

	 	(m)	 No Default. No Default has occurred and is continuing. 

 

	 	(n)	 Authorized and Issued Capital. Schedule 6.1(n) lists the authorized capital of the Borrower together
with the registered and beneficial owners of the issued capital thereof as of the Closing Date. Except as set forth in Schedule 6.1(n), as of the Closing Date no Person has an agreement or option or any other right or privilege (whether by law, pre-emptive or contractual) capable of becoming an agreement or option, including convertible securities, warrants or convertible obligations of any nature, for the purchase, subscription, allotment or issuance of
any Capital Stock of the Borrower. Except as set forth in Schedule 6.1(n), the Borrower does not as at the Closing Date have any Subsidiaries. 

  

	 	(o)	 Material Agreements. Each Material Agreement is in full force and effect, unamended. No event has
occurred and is continuing which would constitute a breach of, or a default under, any Material Agreement. 

  

	 	(p)	 No Burdensome Agreements. The Borrower is not a party to any agreement or instrument or subject to any
restriction (including any restriction set forth in its constating documents) which would reasonably be expected to have a Material Adverse Effect on its material operations, business, Assets or financial condition. 

 

	 	(q)	 No Litigation. There are no Claims, actions, suits or proceedings pending, taken or, to the
Borrower’s knowledge, threatened, before or by any Governmental Authority or by any elected or appointed public official or private person in Canada or elsewhere, whether or not having the force of law, and no Applicable Law which may affect
the Borrower has been enacted, promulgated or applied, or to the knowledge of the Borrower, has been proposed, in each case which, if determined adversely to the Borrower, would reasonably be expected to have a Material Adverse Effect.

  

	 	(r)	 No Judgments. The Borrower is not subject to any judgment, order, writ, injunction, decree or award, or
to any restriction, rule or regulation (other than customary or ordinary course restrictions, rules and regulations consistent or similar with those imposed on other Persons engaged in similar businesses) which restrains, prohibits or delays the
execution and delivery of the Loan Documents, in a manner that would reasonably be expected to have a Material Adverse Effect. 

  

	 	(s)	 Validity, Priority and Perfection of Security. The Security Documents, other than the Charge, will, and
the Charge will from and after the Real Property Security Date, be effective to create (i) a valid and continuing Lien on the Collateral and, (ii) upon the filing of the appropriate financing statements or other applicable

  
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personal property security registrations and filings, a perfected Lien in favour of the Lender on the Collateral, with respect to which a security interest may be perfected by filing pursuant to
personal property security legislation in all applicable jurisdictions. 

  

	 	(t)	 Insurance. The Borrower’s Assets are insured in accordance with the provisions of the Permitted
Prior Secured Indebtedness and Section 7.1(m). 

  

	 	(u)	 Accuracy of Information. No written statement furnished by or on behalf of or at the direction of the
Borrower to the Lender in connection with the negotiation, consummation or administration of the Credit Facility contains, as of the time such statements were so furnished, any untrue statement of a material fact or an omission of a material fact as
of such time, which material fact is necessary to make the statements contained therein not misleading and all such statements, taken as a whole, together with this Credit Agreement, do not contain any untrue statement of a material fact or omit a
material fact necessary to make the statements contained herein or therein not misleading. 

  

	 	(v)	 Algoma Capital Investment Plan and Annual Work Schedules. With respect to the information and
documentation, including forecasts, contained in the Algoma Capital Investment Plan and the Annual Work Schedules, that: 

  

	 	(i)	 the forecasts were based upon the judgment of directors and officers of the Borrower, who considered the most
likely set of future conditions in their opinion at that time and their impact upon the Borrower; 

  

	 	(ii)	 the information used in preparing such document substantially reflects the plans of the Borrower;

  

	 	(iii)	 the assumptions relied upon in preparing the forecasts are appropriate in the opinion of directors and officers
of the Borrower; 

  

	 	(iv)	 adequate support documentation outlining methods and procedures used in preparing the forecasts is available
from the Borrower; 

  

	 	(v)	 all statements and documentation provided to the Lender in support of such documents are true and correct; and

  

	 	(vi)	 the Borrower recognizes that the Lender has relied upon the truth, authenticity and accuracy of such
information and documentation in authorizing the funding contemplated by this Credit Agreement. 

  

	 	(w)	 Insolvency. The Borrower is not insolvent. 

 

	 	(x)	 ABL Lenders. None of the ABL Lenders are Non-Debt Fund
Affiliates (as such term is used and defined in the Intercreditor Agreement). 

  

	 	(y)	 Full Disclosure. All information furnished by or on behalf of the Borrower to the Lender for purposes
of, or in connection with, this Credit Agreement or any other 

  
 - 28 - 

	 	
Loan Document, or any other transaction contemplated by this Credit Agreement, including any information furnished in the future, is or will be true and accurate in all material respects on the
date as of which such information is dated or certified, and not incomplete by omitting to state any material fact necessary to make such information not misleading at such time in light of then-current circumstances. There is no fact now known to
the Borrower which has had, or could reasonably be expected to have, a Material Adverse Effect. 

 ARTICLE 7 

COVENANTS OF THE BORROWER 
  

	7.1	 Affirmative Covenants 

So long as any amount owing hereunder remains unpaid or the Lender has any obligation under this Credit Agreement, then from and after the Closing Date the
Borrower shall: 
  

	 	(a)	 Financial Reporting Requirements. Provide the Lender with a copy of all financial reporting materials
required to be delivered by the Borrower to any lender of Permitted Prior Secured Indebtedness or to the lender under the Canada Facility or the Canada SIF Facility documentation, promptly following the delivery thereof pursuant to the applicable
credit or loan documentation. 

  

	 	(b)	 Environmental Reporting. Provide the Lender with a copy of all materials required to be delivered by the
Borrower in respect of environmental matters to any lender of Permitted Prior Secured Indebtedness promptly following the delivery thereof pursuant to the applicable credit or loan documentation. 

 

	 	(c)	 Additional Reporting Requirements. Deliver to the Lender: 

 

	 	(i)	 all Reports and other deliverables specified in Exhibit 1.1B using the appropriate form of report or
deliverable set out in Exhibit 1.1B in accordance with the timelines and content requirements set out in Exhibit 1.1B or in a form as specified by the Lender from time to time, 

 

	 	(ii)	 as soon as possible, and in any event within five days after the Borrower becomes aware of the occurrence of
any Default, a statement of the chief financial officer, treasurer or chief operating officer of the Borrower or any other officer acceptable to the Lender setting forth the details of such Default and the action which the Borrower proposes to take
or have taken with respect thereto, 

  

	 	(iii)	 prompt notice in writing of any default, or event condition or occurrence which with notice or lapse of time,
or both would constitute a default under any agreement in respect of indebtedness to which the Borrower owes (contingently or otherwise) at least $50,000,000 (or the equivalent amount in any other currency), or in respect of Permitted Prior Secured
Indebtedness or the Canada Facility or the Canada SIF Facility, 

  
 - 29 - 

	 	(iv)	 from time to time upon request of the Lender, evidence of maintenance of all insurance required to be
maintained by the Permitted Prior Secured Indebtedness, including such originals or copies as the Lender may reasonably request of policies, certificates of insurance, riders and endorsements relating to such insurance and proof of premium payments,

  

	 	(v)	 promptly, and in any event within ten days of receipt by the Borrower, notice of any suit, proceeding or
similar action commenced or threatened by any Governmental Authority or any other Person, which has had or could reasonably be expected to have a Material Adverse Effect. 

 

	 	(d)	 Existence. Preserve and maintain its existence as a corporation. 

 

	 	(e)	 Observance of Covenants. Observe and perform all of the covenants, agreements, terms and conditions to
be observed and performed by it under this Credit Agreement or in any other Loan Document. 

  

	 	(f)	 Compliance with Laws. Comply with the requirements of all Applicable Law, including all Environmental
Laws, all municipal zoning by-laws and including all Applicable Laws pertaining to Taxes, except where such non-compliance would not, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. 

  

	 	(g)	 Maintenance of Properties, etc. Maintain and preserve all of its Assets used or useful in its businesses
in all material respects in good repair, working order and condition (reasonable wear and tear and obsolete Assets excepted) and in material compliance with Environmental Laws and, from time to time, make all material needful and proper repairs,
renewals, replacements, additions and improvements thereto, so that the businesses of the Borrower may be properly and advantageously conducted at all time in accordance with prudent business management, provided that the Borrower may, in accordance
with the Leases, or with the approval of the Lender (not to be unreasonably withheld), remove or demolish buildings or structures on the Leased Lands which are no longer in use. 

 

	 	(h)	 Conduct of Business. Conduct, in each Fiscal Year, its business in a prudent manner and consistent with
good business practices. 

  

	 	(i)	 Protect Liens. Except for the filing of renewal statements and the making of other filings by the Lender
as a secured party, at all times from and after the Security Date take all action and supply the Lender with all information necessary to maintain the Liens provided for under the Security Documents and confer upon the Lender, the Liens intended to
be created thereby. 

  

	 	(j)	 Pay all Amounts. Pay all amounts of principal, interest, costs and expenses owing hereunder by the
Borrower on the dates, at the times, and at the places specified in this Credit Agreement, any amortization table delivered by Lender to Borrower pursuant to section 2.3 of this Credit Agreement or under any other Loan Documents to which the
Borrower is a party. 

  
 - 30 - 

	 	(k)	 Visitation and Inspection. At (i) any reasonable time or times and upon reasonable prior notice at
the request of the Lender, permit the Lender and its representatives and consultants to visit and inspect the records of the Obligors, the Collateral and the Project and to discuss the affairs, finances and accounts of the Borrower with senior
officers including the officer appointed as (or performing the functions of) the chief financial officer thereof at the Lender’s expense, it being acknowledged by the Borrower that no provision of this Credit Agreement shall be construed so as
to give the Lender any control whatsoever over the Borrower’s records, and that the Lender’s rights under this Section are in addition to any rights provided to the Auditor General pursuant to the Auditor General Act (Ontario).

  

	 	(l)	 Additional Reports. If the Lender or the Auditor General believes that there are inaccuracies in, or
inconsistencies between, any Borrowing Notice submitted to the Lender (and the materials accompanying same pursuant to Section 3.2) and the Borrower’s financial records and books of account, the Borrower must provide at the request of the
Lender or the Auditor General and at the Borrower’s own expense an audit report from a public accountant licensed under the laws of Ontario which audit report shall be satisfactory to the Lender in form and content and address:

  

	 	(i)	 Advances made to date; 

 

	 	(ii)	 costs which have been claimed as Eligible Project Costs incurred by the Borrower to date;

  

	 	(iii)	 whether the Eligible Project Costs were incurred in accordance with the Funded Project Budgets and this Credit
Agreement; and 

  

	 	(iv)	 any other financial information pertaining to this Credit Agreement as may be reasonably specified in the
request. 

  

	 	(m)	 Maintenance of Insurance. Maintain or cause to be maintained insurance at all times complying with the
terms of the Term Loan Credit Agreement, and take all steps necessary to ensure that all such policies show the Lender as loss payee as its interests may appear and additional insured thereof under a mortgage clause in a form approved by the
Insurance Bureau of Canada and furnish or cause to be furnished evidence thereof to the Lender on or prior to the date of the first Advance under the Credit Facility. The Borrower will pay or cause to be paid all premiums necessary for such purpose
as the same shall become due and will provide particulars of all such policies and all renewals thereof to the Lender upon request. 

  

	 	(n)	 Cure Defects. Promptly cure or cause to be cured any defects in the execution and delivery of any of the
Loan Documents or any of the other agreements, instruments or documents contemplated thereby or executed pursuant thereto or any defects in the validity or enforceability of any of the Loan Documents and, at its expense, execute and deliver or cause
to be executed and delivered all such agreements, instruments and other documents as the Lender may consider necessary or desirable for the foregoing purposes. 

  
 - 31 - 

	 	(o)	 Use of Proceeds. Use the proceeds of all Advances for the reimbursement of Eligible Project Costs and
for no other purpose whatsoever. 

  

	 	(p)	 Further Assurances. At the Borrower’s cost and expense, upon request of the Lender, duly execute
and deliver or cause to be duly executed and delivered to the Lender such further instruments and do and cause to be done such further acts as may be necessary or proper in the reasonable opinion of the Lender to carry out more effectually the
provisions and purposes of the Loan Documents. 

  

	 	(q)	 Additional Guarantees and Security. Cause any Subsidiaries formed or acquired by it or any other Obligor
after the date hereof to, within the timeframe required and to the extent so required under the Permitted Prior Secured Indebtedness in favour of the Term Lenders and ABL Lenders, enter into an unlimited guarantee in favour of the Lender of the
obligations of the Borrower to the Lender under the Loan Documents, and grant to the Lender pursuant to a Security Document a first ranking Lien over all Assets of such Subsidiary (subject to the terms of the Intercreditor Agreement and Liens
securing Permitted Prior Secured Indebtedness), as collateral security for its obligations under such guarantee. The Borrower shall also deliver or cause to deliver to the Lender: (i) a certificate of status, compliance, good standing or like
certificate with respect to such Subsidiary issued by the appropriate Governmental Authority of the jurisdiction of its incorporation; (ii) share certificates representing all the issued and outstanding shares of such Subsidiary, together with
a power of attorney delivered in blank to the Lender, executed by the holders of all shares evidenced by such certificates (subject to the terms of the Intercreditor Agreement); and (iii) any such other security document(s) as reasonably
requested by the Lender. Following execution and delivery of all documentation contemplated by this Section 7.1(q), such Subsidiary shall be deemed to be Guarantor and Obligor for purposes of this Agreement, and the guarantee and Security
Documents entered into by such Subsidiary shall be considered Loan Documents for purposes of this Agreement. 

  

	 	(r)	 Funding. Use the Borrower’s own funds or funds from other sources for all Eligible Project Costs
not reimbursed through Advances hereunder and all costs associated with Funded Projects which are not Eligible Project Costs. 

  

	 	(s)	 Annual Work Schedules. With the exception of the 2017-2019 Annual Work Schedule, which shall be executed
by the parties prior to the making of the first Advance under the Credit Facility, the Borrower shall deliver to the Lender for its approval not less than 30 days prior to the beginning of each Fiscal Year a proposed annual work schedule
substantially in the form attached as Exhibit 1.1A, which proposed annual work schedule when delivered by the Borrower shall be reviewed by the Lender and either (i) accepted and executed by the Lender, at which point it shall become an Annual
Work Schedule and form part of this Agreement; or (ii) be rejected by the Lender, with the Borrower being notified of any deficiencies or issues that need to be addressed, provided that the Lender shall not unreasonably withhold or delay its
acceptance and execution of such Annual Work Schedule. Where a deficiency or issue is identified and is capable of correction, the Borrower will revise and resubmit the proposed annual work

  
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schedule, duly executed by the Borrower, for approval within 15 days after having received the notice from the Lender of any deficiencies or issues that need to be addressed. 

 

	 	(t)	 Job Targets. Meet or exceed the First Cumulative Job Target in each Fiscal Year during the First
Measurement Period and meet or exceed the Second Cumulative Job Target in each Fiscal Year during the Second Measurement Period; provided, however, that the Lender agrees that a failure to comply with the foregoing covenant shall constitute an Event
of Default only if the Borrower fails to comply with the repayment obligation triggered by such failure pursuant to Section 2.5. 

  

	 	(u)	 Investment Target. Make such investments in Projects pursuant to the Algoma Capital Investment Plan as
will result in investments in Projects totalling CDN $600,000,000.00 having been made over the period from November 14, 2014 to March 31, 2023. 

  

	 	(v)	 Pensions. Comply, in all material respects, with the Borrower’s pension funding obligations under
Applicable Law, including without limitation, any contributions required under any pension funding agreements between the Borrower and the Financial Services Commission of Ontario. 

 

	7.2	 Negative Covenants 

So long as any amount owing hereunder remains unpaid or the Lender has any obligation under this Credit Agreement, and unless consent is given in accordance
with Section 9.1, the Borrower shall not do any of the following or permit any Subsidiary of the Borrower to do any of the following: 
  

	 	(a)	 Amalgamations. Amalgamate into or with any other Person, or permit any other Person to amalgamate into
or with it, without the prior written consent from the Lender, except that, if at the time thereof and immediately after giving effect thereto no Event of Default shall have occurred: (i) any Obligor may amalgamate with any other Obligor,
(ii) any Subsidiary may amalgamate with any other Subsidiary; and (iii) the Borrower may amalgamate with any other Person if, in the opinion of the Lender, acting reasonably, the successor entity resulting from the amalgamation is capable
of performing the obligations of the Borrower under this Agreement, the other Loan Documents and the Permitted Prior Secured Indebtedness, and provided that, in each case, any transaction pursuant to this section 7.2(a) shall not be permitted unless
the conditions set out in Section 9.02 (Mergers and Consolidations) of the Term Loan Credit Agreement are satisfied. 

  

	 	(b)	 Liens. Create, incur, assume or suffer to exist on the Assets of the Borrower or any Subsidiary any
Liens securing any indebtedness ranking prior to the Liens granted pursuant to the Security Documents other than Liens securing Permitted Prior Secured Indebtedness. 

 

	 	(c)	 Change in Business. Engage in any material business or activity other than the Business or incur any
material liabilities unrelated to the Business, in each case that would reasonably be expected to have a Material Adverse Effect. 

  
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	 	(d)	 Restrictive Agreements. Enter into any agreement prohibiting the granting of security as contemplated by
Section 5.1, or the repayment of Amounts Outstanding in accordance with the terms hereof other than as set out in any documentation approved by the Lender pursuant to Section 4.1. 

 

	 	(e)	 Procurement. Acquire supplies, equipment or services for the Funded Projects for an amount greater than
five hundred thousand dollars ($500,000.00) unless a competitive process is used, including a written request for at least three proposals, written evaluation of bids received and a written agreement with the successful contractor.

  

	 	(f)	 Funded Project Changes. Make any material changes to any Funded Project unless the consent of the Lender
to such change is first obtained and the Borrower abides by the terms and conditions imposed by the Lender in connection with such consent. 

  

	 	(g)	 Additional Security and Guarantees. Provide to the holder of any Permitted Prior Secured Indebtedness
any security for, or a guarantee of any Person of, any Permitted Prior Secured Indebtedness, unless such security or guarantee has already been granted or is simultaneously granted to the Lender to secure or guarantee the Borrower’s
indebtedness, liabilities and obligations under the Loan Documents. 

  

	7.3	 Covenants Incorporated by Reference and Change of Control 

Subject to the terms of this Section 7.3, the covenants made by the Borrower to and in favour of the Term Lenders in Sections 8.08 (End of Fiscal Years),
9.02 (Merger and Consolidation), 9.03 (Restricted Payments), 9.04 (Indebtedness), 9.05 (Restrictions on Distributions from Restricted subsidiaries), 9.06 (Transactions with Affiliate), 9.08 (Limitation on Sales of Assets and Subsidiary Stock) and
9.11 (Limitation on Activities) of the Term Loan Credit Agreement or the credit agreement dated after the date hereof governing any Permitted Refinancing Term Loans (the “Incorporated Covenants”) are hereby incorporated by reference
into this Credit Agreement, mutatis mutandis, and are made by the Borrower to and in favour of the Lender (and for such purpose any references in an Incorporated Covenant to the “Collateral Agent” or the “Administrative
Agent” or the “Lenders” shall be deemed to include the Lender and any references therein to the “Security Documents” or “Credit Documents” shall be deemed to include the Loan Documents). The event of default in
Section 10.01(i)(Change of Control) of the Term Loan Credit Agreement or the credit agreement dated after the date hereof governing any Permitted Refinancing Term Loans (a “Change of Control”) is hereby incorporated by
reference into this Credit Agreement, mutatis mutandis. Any act, omission, event or circumstance which would constitute a breach of an Incorporated Covenant, or a Change of Control, but which is waived, modified or extended by the Term
Lenders (or the Term Agent on behalf of the Term Lenders pursuant to the express terms of the Term Loans) shall be deemed to be waived, modified or extended to the same extent by the Lender hereunder, and any amendment by the Term Lenders and the
Borrower of an Incorporated Covenant will bind the Lender, provided that: 
  

	 	(a)	 the ABL Lenders (or the ABL Agent on their behalf) have waived the breach of or modified or extended, or have
amended in the same manner as the Term 

  
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Lenders, the covenant contained in the ABL Credit Agreement which is comparable to the Incorporated Covenant subject to such waiver, amendment, modification or extension, or have waived or
modified the Change of Control, as applicable; 

  

	 	(b)	 the Borrower notifies the Lender promptly upon becoming aware of such an act, omission, event or circumstance
or of a potential amendment and upon it seeking a waiver, modification or extension and promptly responds to all inquiries made by the Lender and keeps the Lender fully informed with respect to such matters; 

 

	 	(c)	 the Borrower promptly (and in any event within one (1) Business Day) provides the Lender with a copy of
any waiver, amendment, modification or extension granted or agreed to by the Term Lenders and the ABL Lenders (or the Term Agent or the ABL Agent, as applicable, on their behalf) in respect of any Incorporated Covenant or Change of Control,
including all conditions imposed by the Term Lenders or the ABL Lenders (or the Term Agent or the ABL Agent, as applicable, on their behalf) in connection therewith; 

 

	 	(d)	 if any payment, consideration or further security or assurance is made, paid or granted by the Borrower to the
Term Lenders (or the Term Agent on their behalf) or any other holder of Permitted Prior Secured Indebtedness (or duly authorized agent or representative thereof) in consideration for a waiver, extension, modification or amendment as aforesaid, the
same payment, consideration, further security or assurance will also be made, paid or granted to the Lender; 

  

	 	(e)	 within thirty (30) days of being notified of a waiver by the Term Lenders of a breach of an Incorporated
Covenant or the occurrence of a Change of Control or of an amendment of an Incorporated Covenant as aforesaid, the Lender may, if it determines (acting reasonably) that such waiver or amendment would cause a Material Adverse Effect, so notify the
Borrower and the Term Lenders and in such notice may terminate the Lender’s obligation to make further Advances under the Credit Facility; and 

  

	 	(f)	 within thirty (30) days of the Lender becoming aware that the lender under the Canada Facility has
exercised any right it has thereunder to terminate its obligation to reimburse claims under the Canada Facility as a result of a waiver by the Term Lenders of a breach of an Incorporated Covenant or the occurrence of a Change of Control or of an
amendment of an Incorporated Covenant as aforesaid, so notify the Borrower and the Term Lenders and in such notice may terminate the Lender’s obligation to make further Advances under the Credit Facility. 

 

	7.4	 Increase in Term Loan and/or ABL Facility 

If the amount of the Term Loan or the ABL Facility is to be increased beyond the aggregate amount specified in this Credit Agreement’s definition of
“Term Loan” or “ABL Facility” respectively, then: 

  
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	 	(a)	 the Borrower will promptly notify the Lender of such increase and promptly respond to all inquiries made by the
Lender and keep the Lender fully informed with respect to such matter; 

  

	 	(b)	 the Borrower will immediately provide the Lender with a copy of all documentation effecting the increase; and

  

	 	(c)	 within thirty (30) days of being notified of the increase, the Lender may, if it determines (acting
reasonably) that the increase would cause a Material Adverse Effect so notify the Borrower and in such notice may terminate the Lender’s obligation to make further Advances under the Credit Facility. 

ARTICLE 8 
 EVENTS OF
DEFAULT AND REMEDIES 
  

	8.1	 Events of Default 

Each of the following events shall be an “Event of Default”: 
  

	 	(a)	 the Borrower shall fail to pay any principal amount of the Amounts Outstanding under the Credit Facility when
such amount becomes due and payable, and such failure shall remain unremedied for three Business Days; 

  

	 	(b)	 the Borrower shall fail to pay any Interest or any other amount when the same becomes due and payable hereunder
or under any of the Loan Documents and such failure shall remain unremedied for three Business Days; 

  

	 	(c)	 any representation or warranty or certification made or deemed to be made by the Borrower or any Obligor in
this Credit Agreement or any other Loan Document to which it is a party shall prove to have been incorrect in any material respect when made or deemed to be made and such incorrect representation or warranty or certification continues unremedied for
a period of thirty (30) days after the earlier of the date on which Borrower becomes aware thereof or receives written notice thereof by the Lender; 

  

	 	(d)	 the Borrower or any Obligor shall fail to perform or observe in any material respect any of the terms,
covenants or agreements contained in this Credit Agreement or in any other Loan Document (other than (i) the terms, covenants and agreements relating to the payment of Interest and Amounts Outstanding and (ii) Section 7.3 and
Section 7.1(e) to the extent it relates to Section 7.3), on its part to be performed, observed, or otherwise applicable to it and shall fail to remedy such failure within thirty (30) days of being notified of same by the Lender;

  

	 	(e)	 the Borrower or any Obligor shall fail to perform or observe any of the covenants set out in Section 7.2
of this Credit Agreement; 

  

	 	(f)	 the Borrower or any Obligor shall fail to perform or observe any of the Incorporated Covenants pursuant to the
terms of Section 7.3 of this Credit Agreement (subject to any cure rights provided for in the Term Loan Credit 

  
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Agreement or any future credit agreement governing any Permitted Refinancing Term Loans); 

  

	 	(g)	 any (i) failure by the Borrower or any Obligor to pay indebtedness exceeding $50,000,000 (or the
equivalent amount in other currencies) or any Permitted Prior Secured Indebtedness or indebtedness under the Canada Facility at the stated maturity thereof or as a result of which, the creditor may declare the principal thereof to be due and payable
prior to the stated maturity thereof, or any event shall occur and shall continue after the applicable grace period (if any) specified in any agreement or instrument relating to any such debt of the Borrower or any Obligor to any Person, the effect
of which is to permit the holder of such debt to declare the principal amount thereof to be due and payable prior to its stated maturity, in each case, to the extent such failure or event has not been cured by the Borrower or Obligor or waived by
the affected creditor; or (ii) failure by the Borrower or any Obligor to perform or observe any covenant or agreement to be performed or observed by it contained in any other agreement or in any instrument evidencing any of its indebtedness
exceeding $50,000,000 or any Permitted Prior Secured Indebtedness or any indebtedness under the Canada Facility, to the extent such failure has not been cured by the Borrower or Obligor or waived by the affected creditor; provided that, in the case
of clause (ii) above, any failure by the Borrower or any Obligor to perform or observe any covenant or agreement to be performed or observed by it contained in any such agreement or instrument (other than a payment default) will not constitute
an Event Of Default unless the agent and/or the lenders thereunder have demanded repayment of, or otherwise accelerated, any of the indebtedness or other obligations thereunder (or terminated commitments thereunder); 

 

	 	(h)	 all or any material part of the Assets of the Borrower or any Obligor are executed, sequestered or distrained
upon and such execution, sequestration or distraint (i) relates to claims in the aggregate in excess of $50,000,000 (or the equivalent amount in other currencies), and (ii) the Borrower or any Obligor does not discharge the same or provide
for its discharge in accordance with its terms, or procure a stay of execution thereof (by reason of pending appeal or otherwise), or cause the same to be fully bonded, or deposit with the Lender cash collateral or other security reasonably
satisfactory to the Lender in the amount of the claim, within 60 days from the date of entry thereof; 

  

	 	(i)	 final judgment for the payment of money in the aggregate in excess of $50,000,000 (or the equivalent amount in
other currencies) in excess of applicable insurance shall be rendered by a court of competent jurisdiction against the Borrower or any Obligor and the Borrower or such Obligor does not discharge same or provide for its discharge in accordance with
its terms, or procure a stay of execution thereof (by reason of a pending appeal or otherwise), or deposit with the Lender cash collateral or other security reasonably satisfactory to the Lender in the amount of the judgement, within 45 days from
the date of entry thereof; 

  

	 	(j)	 the Borrower or any Obligor shall: (i) apply for or consent to the appointment of, or the taking of
possession by, an interim receiver, a receiver, custodian, 

  
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administrator, trustee, liquidator or other similar official for itself or for all or any material part of its assets; (ii) generally not pay its debts as such debts become due or admit in
writing its inability to pay its debts generally, or declare any general moratorium on its indebtedness; (iii) institute any proceeding seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, dissolution, winding-up, reorganization, restructuring, arrangement, adjustment, protection, relief or composition of it or its debts under any statute, rule or regulation relating to bankruptcy, insolvency, reorganization,
relief or protection of debtors including without limitation a general assignment for the benefit of creditors or a proposal under the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada) or
the Winding-up and Restructuring Act (Canada) or a similar law of any applicable jurisdiction; or (iv) take any corporate action to authorize any of the actions described in the foregoing;

  

	 	(k)	 any proceeding against the Borrower or any Obligor has been commenced to: (i) adjudicate it a bankrupt or
insolvent; (ii) result in the liquidation, dissolution, winding-up, reorganization, restructuring, arrangement, adjustment, protection or relief or composition of it or its debts under any statute, rule
or regulation relating to bankruptcy, insolvency, reorganization, relief or protection of debtors; or (iii) result in the appointment of an interim receiver, receiver, custodian, administrator, trustee, liquidator or other similar official for it or
for all or any material part of its assets and, in each case, such proceeding remains undismissed or unstayed for a period of 60 days or any of the actions sought in such proceeding shall occur; 

 

	 	(l)	 any Loan Document shall become unenforceable other than by reason of the direct act or omission of the Lender,
unless such a deficiency is corrected within a 15 day period following written notification from the Lender in regard to the deficiency or a 30 day period following such notification if (i) the Borrower delivers an officers certificate within
such initial 15 day period stating that the Borrower is taking steps in good faith to remedy the deficiency and (ii) the deficiency does not have a Material Adverse Effect on the Security Documents; 

 

	 	(m)	 the Borrower shall abandon any Funded Project prior to its completion; or 

 

	 	(n)	 there shall occur a Business Asset Sale in the context of which the obligations of the Borrower and the
Guarantors under the Loan Documents are not assumed (pursuant to documentation satisfactory to the Lender acting reasonably) by a buyer and other parties who are in the Lender’s reasonable opinion capable of performing such obligations.

  

	8.2	 Acceleration and Termination of Rights 

If any Event of Default occurs and is continuing, then: 
  

	 	(a)	 in the case of an Event of Default described in Sections 8.1(j) or 8.1(k), all of the Lender’s obligations
to make further Advances under the Credit Facility will, without further notice, act or formality, be automatically terminated and all Amounts Outstanding and all Interest accrued thereon and all other amounts

  
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payable under this Credit Agreement in respect of the Credit facility will be immediately due and payable without presentation, demand, protest or further notice of any kind (except as required
by law), all of which are hereby expressly waived by the Borrower; and 

  

	 	(b)	 in the case of any other Event of Default, the Lender may, by written notice to the Borrower (i) terminate
the Lender’s obligations to make further Advances under the Credit Facility; and (ii) (at the same time or at any time after such termination) declare all Amounts Outstanding and all Interest accrued thereon and all other amounts payable under
this Credit Agreement in respect of the Credit Facility to be immediately due and payable, without presentment, demand, protest or further notice of any kind (except as required by law), all of which are hereby expressly waived by the Borrower.

 In that event, the Security Documents shall become immediately enforceable and the Lender may, in its sole discretion, exercise any
right or recourse and/or proceed by any action, suit remedy or proceeding against the Borrower authorized or permitted by law for the recovery of all the indebtedness, obligations or liabilities of the Borrower to the Lender, and proceed to exercise
any and all rights hereunder and under the Security Documents, and no such remedy for the enforcement of the rights of the Lender shall be exclusive of, or dependent on, any other remedy, but anyone or more of such remedies may from time to time be
exercised independently or in combination. 
  

	8.3	 Remedies Cumulative 

For greater certainty, it is expressly understood and agreed that the rights and remedies of the Lender under this Credit Agreement or under any other Loan
Documents are cumulative and are in addition to, and not in substitution for, any rights or remedies provided by law or by equity; and any single or partial exercise by any of the Lender of any right or remedy for a default or breach of any term,
covenant, condition or agreement contained in this Credit Agreement or other Loan Document shall not be deemed to be a waiver of or to alter, affect or prejudice any other right or remedy or other rights or remedies to which such Lender may be
lawfully entitled for such default or breach. 
  

	8.4	 Saving 

The Lender shall have no obligation to the Borrower or other Person to realize any collateral or enforce the security or any part thereof or to allow any of
the Collateral to be sold, dealt with or otherwise disposed of. The Lender shall not be responsible or liable to the Borrower or any other Person for any loss or damage upon the realization or enforcement of, the failure to realize or enforce the
Collateral or any part thereof or the failure to allow any of the Collateral to be sold, dealt with or otherwise disposed of or for any act or omission on their respective parts or on the part of any director, officer, agent, servant or adviser in
connection with any of the foregoing, except that the Lender may be responsible or liable for any loss or damage arising from the wilful misconduct or gross negligence of the Lender. 

 

	8.5	 Perform Obligations 

If an Event of Default has occurred and is continuing, and if the Borrower has failed to perform any of its covenants or agreements in the Loan Documents, the
Lender may, but shall be under 

  
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no obligation to, perform any such covenants or agreements in any manner deemed fit by the Lender without thereby waiving any rights to enforce the Loan Documents. The reasonable expenses
(including any legal costs) incurred by the Lender in respect of the foregoing shall be an obligation of the Borrower and shall be secured by the security granted herein. 
  

	8.6	 Third Parties 

No Person dealing with the Lender or any agent of the Lender shall be concerned to inquire whether the security under the Security Documents has become
enforceable, or whether the powers which the Lender is or purporting to exercise have been exercisable, or whether any obligations remain outstanding upon the security thereof, or as to the necessity or expediency of the stipulations and conditions
subject to which any sale shall be made, or otherwise as to the propriety or regularity of any sale or other disposition or any other dealing with the collateral charged by such security or any part thereof. 

 

	8.7	 Set-Off or Compensation 

In addition to, and not in limitation of, any rights now or hereafter granted under applicable law, if repayment is accelerated pursuant to Section 8.2,
the Lender may, at any time without notice to the Borrower or any other Person, set-off and compensate and apply any and all deposits, general or special, time or demand, provisional or final, matured or
unmatured, and any other indebtedness at any time owing by the Province or the Lender to the Borrower, against and on account of the obligations of the Borrower hereunder, notwithstanding that any of them are contingent or unmatured. Without
limiting the foregoing and without limiting the application of Section 43 of the Financial Administration Act (Ontario) if the Borrower fails to pay any amount owing under this Credit Agreement, the Province may deduct any unpaid amount
from any money payable to the Borrower by the Province. 
  

	8.8	 Application of Payments 

Notwithstanding any other provisions of this Credit Agreement, after the occurrence and during the continuance of an Event of Default, all payments made by the
Borrower under this Credit Agreement, or from the proceeds or realization of any security, or otherwise collected or received by the Lender on account or amounts outstanding with respect to any of the obligations, owed to the Lender hereunder shall
be paid over or delivered to make the following payments (as the same become due at maturity, be acceleration or otherwise): 
  

	 	(a)	 First, to the payment of all reasonable
out-of-pocket costs and expenses (including, without limitation, reasonable legal fees) of the Lender in connection with enforcing the rights of the Lender under the
Loan Documents; 

  

	 	(b)	 Second, to the payment of all obligations consisting of default Interest; 

 

	 	(c)	 Third, to the payment of all obligations consisting of Interest payable to the Lender hereunder;

  

	 	(d)	 Fourth, to the payment of the Amounts Outstanding; and 

  
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	 	(e)	 Fifth, to all other obligations and thereafter the surplus, if any, to the Borrower or whomever else may be
lawfully entitled to receive such surplus. 

 ARTICLE 9 

MISCELLANEOUS 
  

	9.1	 Amendment 

No amendment or waiver of any provision of any of the Loan Documents, and no consent to any departure by the Borrower or any other Person from such provisions,
shall be effective unless in writing and approved by the Lender. Any amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given. 

 

	9.2	 Waiver 

  

	 	(a)	 No failure on the part of the Lender to exercise, and no delay in exercising, any right under any of the Loan
Documents shall operate as a waiver of such right; and no single or partial exercise of any right under any of the Loan Documents shall preclude any other or further exercise of such right or the exercise of any other right. 

 

	 	(b)	 Except as otherwise expressly provided in this Credit Agreement, the covenants, representations and warranties
shall not merge on and shall survive the initial Advance and, notwithstanding such initial Advance or any investigation made by or on behalf of any party, shall continue in full force and effect. The closing of this transaction shall not prejudice
any right of one party against any other party in respect of anything done or omitted under this Credit Agreement or in respect of any right to damages or other remedies. 

 

	9.3	 Indemnities 

  

	 	(a)	 The Borrower shall indemnify Her Majesty the Queen in right of Ontario, Her ministers, agents, appointees, and
employees, (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all Losses and Claims, incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the
Borrower arising out of, in connection with, or as a result of (i) the execution or delivery of this Credit Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance or non-performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation or non-consummation of the transactions contemplated hereby
or thereby, (ii) any Advance or the use or proposed use of the proceeds therefrom, (iii) any actual or alleged presence or Release of Hazardous Materials on or from any property owned or operated by the Borrower, or any Environmental
Liability related in any way to the Borrower, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third
party or by the Borrower and regardless of whether any Indemnitee is a party thereto, provided that such indemnity shall not, as to any Indemnitee, be available to the extent that 

  
 - 41 - 

	 	
such Losses or Claims (x) are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross
negligence or wilful misconduct of such Indemnitee or (y) result from a Claim brought by the Borrower against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if the
Borrower has obtained a final and non-appealable judgment in its favour on such Claim as determined by a court of competent jurisdiction nor shall it be available in respect of matters specifically addressed
in Sections 9.3(b) and 9.4. 

  

	 	(b)	 The Borrower shall pay to the Lender on demand any amounts required to compensate the Lender for any Loss
suffered or incurred by it as a result of the failure of the Borrower to make a payment or a mandatory repayment in the manner and at the time specified in this Credit Agreement. 

 

	 	(c)	 A certificate as to the amount of any Loss submitted in good faith by the Lender to the Borrower shall be prima
facie evidence of such Loss, absent manifest error. 

  

	 	(d)	 The provisions of this Section 9.3 shall survive the termination of this Credit Agreement and the
repayment of all Amounts Outstanding. The Borrower acknowledges that neither its obligation to indemnify nor any actual indemnification by it of the Lender, or any other Indemnitee in respect of such Person’s losses for the legal fees and
expenses shall in any way affect the confidentiality or privilege relating to any information communicated by such Person to its counsel. 

  

	 	(e)	 This Section 9.3 shall not apply with respect to Taxes other than any Taxes that represent Losses or
Claims arising from any non-Tax Claim. 

  

	9.4	 Costs and Expenses 

The Borrower shall pay all reasonable out-of-pocket expenses incurred by the
Lender including the reasonable fees, charges and disbursements of counsel for the Lender, in connection with (a) the Lender’s due diligence in connection with this Credit Agreement, the negotiation, execution, registration and perfection
of the Loan Documents and the review and/or negotiation and execution of the documentation described in Section 4.1 and 4.2; and (b) the enforcement or protection of its rights in connection with this Credit Agreement and the other Loan
Documents, including its rights under this Section, or in connection with the Advances made hereunder, including all such out-of-pocket expenses incurred during any
workout, restructuring or negotiations in respect of such Advances. The Borrower will pay the expenses referred to in clause (a) above on the earlier of demand by the Lender and the making of the first Advance under the Credit Facility. The
Borrower will pay the expenses referred to in clause (b) above on demand by the Lender. 
  

	9.5	 Interest on Accounts 

Except as may be expressly provided otherwise in this Credit Agreement, all amounts owed by the Borrower to the Lender, which are not paid when due (whether at
stated maturity, on demand, by acceleration or otherwise) shall (to the extent permitted by Applicable Law) bear Interest (both before and after default and judgment), from the date on which such amount is due

  
 - 42 - 

 
until such amount is paid in full, payable on demand, at a rate per annum equal at all times to the rate specified in Section 3.3. 

 

	9.6	 Severability 

If any provision of this Credit Agreement or portion thereof or the application thereof to any Person or circumstance shall to any extent be invalid or
unenforceable: (a) the remainder of this Credit Agreement or the application of such provision or portion thereof to any other Person or circumstance shall not be affected thereby; and (b) the parties will negotiate in good faith to amend
this Credit Agreement to implement the intentions set forth in this Credit Agreement. Each provision of this Credit Agreement shall be valid and enforceable to the fullest extent permitted by law. 

 

	9.7	 Language 

The parties hereto confirm that it is their wish that this Credit Agreement, as well as any other documents relating to this Credit Agreement, including
Notices, Schedules, Exhibits and authorizations, have been and shall be drawn up in the English language only. Les parties aux présentes confirment leur volonté que cette convention, de même que tous les documents, y compris tous
avis, annexes et autorisations s’y rattachant, soient rédigés en anglais seulement. 
  

	9.8	 Address for Notice 

All notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified
or registered mail or sent by telecopier or electronic mail to the addresses or telecopier numbers or e-mail addresses specified below. 

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent
by telecopier or electronic mail shall be deemed to have been given when sent (except that, if not given on a Business Day before 5:00 p.m. local time where the recipient is located, shall be deemed to have been given at 9:00 a.m. on the next
Business Day for the recipient). 
 As of the date of this Credit Agreement, the addresses, telecopier numbers and
e-mail addresses of the Borrower and the Lender are as follows: 
  

					
	Borrower	  	Algoma Steel Inc.
		  	105 West Street,
		  	Sault Ste. Marie
		  	Ontario, Canada P6A 7B4
			
		  	Attention:	  	Rajat Marwah, Chief Financial Officer
			
		  	Email:	  	rajat.marwah@algoma.com
	Lender:	  	Ministry of Energy, Northern Development and Mines
		  	Suite 200, 70 Foster Drive

  
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		  	Sault Ste. Marie, Ontario P6A 6V8
			
		  	Attention:	  	Helen Mulc, Assistant Deputy Minister
		  		  	Northern Development Division
			
		  	Fax:	  	(705) 564-7583
		  	Email:	  	helen.mulc@ontario.ca

  

	9.9	 Public Notices 

All public notices to third parties and all other publicity concerning the matters contemplated by this Credit Agreement shall be jointly planned and
coordinated by the parties and no party shall act unilaterally in this regard without the prior written approval of the other parties, except where the party making such notice is required to do so by Applicable Law or any Governmental Authority, or
any stock exchange, in circumstances where prior consultation with the other parties is not practicable. 
  

	9.10	 Counterparts 

Notwithstanding the date of execution or transmission of any counterpart, each counterpart shall be deemed to have the effective date first written above. 

 

	9.11	 Assignment 

The Borrower may not assign its rights or obligations under any Loan Document. The Lender may, without the consent of the Borrower, assign, in whole or in
part, its rights and/or obligations under the Loan Documents to any Person or sell participations to any Person (a “Participant”) in all or a portion of the Lender’s rights and/or obligations under the Loan Documents. Any
payment by a Participant to the Lender in connection with a sale of a participation shall not be or be deemed to be a repayment by the Borrower or a new Advance. 
  

	9.12	 Confidentiality and Non-Disclosure 

The Borrower acknowledges that the Lender is subject to the Freedom of Information and Protection of Privacy Act and is accountable to the Executive
Council of the Ontario Government, its committees, the Legislative Assembly and the general public of Ontario and the contents of this Credit Agreement and any commitments or agreements arising therefrom and any related documents may form part of
the public record. 
 For greater certainty, the Lender may make such public announcements or disclosure as is considered appropriate. 

 

	9.13	 Credit 

Unless otherwise directed by the Lender, the Borrower shall, in a form approved by the Lender, acknowledge the support of the Lender in any publication of any
kind, written or oral, relating to the Funded Projects. If the Borrower publishes any material of any kind, written or oral, relating to the Funded Projects, the Borrower shall indicate in the material that the views expressed in the material are
the views of the Borrower and do not necessarily reflect those of the Lender or the 

  
 - 44 - 

 
government of Ontario. At the request of the Lender, the Borrower shall install and maintain in good condition, at its own expense, signs or plaques acknowledging the Lender’s support for
the Funded Projects in conspicuous and visually unobstructed locations near the physical location of each Funded Project, in accordance with the Lender’s instructions. 

[SIGNATURE PAGES TO FOLLOW] 

  
 - 45 - 

 IN WITNESS WHEREOF, the parties have caused this Credit Agreement to be executed by their respective
authorized officers as of the date first above written. 
  

					
	ALGOMA STEEL INC.
		
	 Per:
	 	 /s/ Joanna Anderson

		 	Name:	 	
		 	Title:	 	Authorized Signatory
	
	HER MAJESTY THE QUEEN IN RIGHT
	OF ONTARIO, as represented by the Minister of Energy, Northern Development and Mines, as Lender
		
	Per:	 	 /s/ Bill Thornton

		 	Name:	 	Bill Thornton
		 	Title:	 	Deputy Minister

 IN WITNESS WHEREOF, the parties have caused this Credit Agreement to be executed by their respective
authorized officers as of the date first above written. 
  

					
	ALGOMA STEEL INC.
		
	Per:	 	  

		 	Name:	 	
		 	Title:	 	Authorized Signatory
	
	HER MAJESTY THE QUEEN IN RIGHT OF ONTARIO, as represented by the Minister of Energy, Northern Development and Mines, as Lender
		
	Per:	 	 /s/ Bill Thornton

		 	Name:	 	Bill Thornton
		 	Title:	 	Deputy Minister

 Credit Agreement

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