Document:

Amended and Restated Security Agreement

 Exhibit 10.2 
  
 AMENDED AND RESTATED 
 SECURITY AGREEMENT 
  
 dated as of 
 May 20, 2003 
 and 
 amended and restated as of 
 October 22, 2004

  
 among 
  
 UNITED STATES STEEL CORPORATION 
  
 and 
  
 JPMORGAN CHASE BANK, 
 as Collateral Agent 

 TABLE OF CONTENTS 
  

  

					
	 	  	 	  	PAGE

	 SECTION 1.  Definitions
	  	1
	 SECTION 2.  Grant of Transaction Liens
	  	5
	 SECTION 3.  General Representations and Warranties
	  	6
	 SECTION 4.  Further Assurances; General Covenants
	  	7
	 SECTION 5.  Cash Collateral Account
	  	8
	 SECTION 6.  Remedies Upon Event of Default
	  	10
	 SECTION 7.  Application of Proceeds
	  	10
	 SECTION 8.  Fees and Expenses; Indemnification
	  	12
	 SECTION 9.  Authority to Administer Collateral
	  	12
	 SECTION 10.  Limitation on Duty in Respect of Collateral
	  	13
	 SECTION 11.  General Provisions Concerning the Collateral Agent
	  	13
	 SECTION 12.  Termination of Transaction Liens; Release of Collateral
	  	15
	 SECTION 13.  Notices
	  	16
	 SECTION 14.  No Implied Waivers; Remedies Not Exclusive
	  	17
	 SECTION 15.  Successors and Assigns
	  	17
	 SECTION 16.  Amendments and Waivers
	  	17
	 SECTION 17.  Choice of Law
	  	17
	 SECTION 18.  Waiver of Jury Trial
	  	17
	 SECTION 19.  Severability
	  	17
	 SECTION 20.  Additional Secured Obligations
	  	18

 EXHIBITS: 
  
 Exhibit A        Perfection Certificate 
  

 ii 

 AMENDED AND RESTATED SECURITY AGREEMENT 
  
 AMENDED AND RESTATED SECURITY AGREEMENT dated as of May 20, 2003 and amended and restated as of October 22, 2004 among United States
Steel Corporation, a Delaware corporation (together with its successors, the “Borrower”) and JPMorgan Chase Bank, as Collateral Agent. 
  
 WHEREAS, (i) the Borrower and the Collateral Agent and certain other parties thereto have previously entered into a Credit Agreement dated as of May 20, 2003 (as
amended prior to the date hereof, the “Existing Credit Agreement”) and (ii) in connection therewith, the Borrower and the Collateral Agent are parties to a Security Agreement dated as of May 20, 2003 (as amended prior to the date
hereof, the “Original Security Agreement”); 
  
 WHEREAS,
the Borrower and the Collateral Agent and certain other parties thereto are entering into the Credit Agreement (as defined below), which amends and restates the Existing Credit Agreement, and pursuant to which the Borrower intends to borrow funds
and obtain letters of credit for the purposes set forth therein; 
  
 WHEREAS, it is a condition to effectiveness of the Credit Agreement that the Borrower amend and restate the Original Security Agreement by executing this Amended Security Agreement (as defined below); 
  
 NOW, THEREFORE, in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree to amend and restate the Original Security Agreement as follows: 
  
 SECTION 1.  Definitions. 
  
 (a)    Terms Defined in Credit Agreement.  Terms defined in the Credit Agreement and not
otherwise defined in subsection 1(b) or 1(c) have, as used herein, the respective meanings provided for therein. 
  
 (b)    Terms Defined in UCC.  As used herein, each of the following terms has the meaning specified in the UCC: 
  

			
	 Term
	  	UCC
	 Account
	  	9-102
	 Authenticate
	  	9-102
	 Chattel Paper
 Deposit Account . . . . . . . . . . . . . . . . . . . . . . . . .
	  	9-102
9-102
	 General Intangibles
	  	9-102
	 Instrument
	  	9-102
	 Inventory
	  	9-102
	 Letter-of-Credit Right
	  	9-102

  
 (c)    Additional Definitions.  The following additional terms, as used herein, have the following meanings: 
  
 “Administrative Agent” means JPMorgan Chase Bank, in its capacity as administrative agent under the Loan Documents, and its successors in such
capacity. 
  
 “Agreement”, when used in reference to this
Agreement, means the Amended Security Agreement, as further amended or amended and restated from time to time. 
  
 “Amended Security Agreement” means this Amended and Restated Security Agreement dated as of May 20, 2003 and amended and restated as of October 22,
2004. 
  
 “Article 9” means Article 9 of the UCC.

 “Blocked Account” means each of the accounts described in Section 5(d) and any other
lockbox, deposit, concentration or similar account that has been subjected to a Blocked Account Agreement pursuant to Section 4(a). 
  
 “Blocked Account Agreement” means, with respect to any account, a blocked account agreement in favor of the Collateral
Agent, all in form and substance satisfactory to the Administrative Agent, the Collateral Agent and the Co-Collateral Agent. 
  
 “Borrower” has the meaning set forth in the preamble to this Agreement. 
  
 “Cash Collateral Account” has the meaning set forth in Section 5. 
  
 “Collateral” means all property, whether now owned or
hereafter acquired, on which a Lien is granted or purports to be granted to the Collateral Agent pursuant to the Security Documents. 
  
 “Collateral Agent” means JPMorgan Chase Bank, in its capacity as Collateral Agent for the Secured Parties under the Security Documents,
and its successors in such capacity. 
  
 “Contracts” means all contracts for the sale, lease, exchange or other disposition of Inventory, whether or not performed and whether or not subject to termination upon a contingency or at the option of any party thereto.

  
 “Credit Agreement” means the Amended
and Restated Credit Agreement dated as of May 20, 2003 and amended and restated as of October 22, 2004 among the Borrower, the Lenders party thereto, the LC Issuing Banks party thereto, JPMorgan Chase Bank, as Administrative Agent, Collateral Agent,
Co-Syndication Agent and Swingline Lender, and General Electric Capital Corporation, as Co-Collateral Agent and Co-Syndication Agent, as further amended, restated or otherwise modified from time to time in accordance with the terms thereof.

  
 “Derivative Contract” means, with respect to
any Derivative Obligation, the written contract evidencing such Derivative Obligation. 
  
 “Derivative Obligation” means, with respect to the Borrower, any obligation of the Borrower in respect of any rate swap transaction, basis swap, forward rate transaction, commodity swap,
commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option or any other similar transaction (including any option with respect to any of the foregoing transactions) or any combination of the foregoing transactions, in each case owing to any Person that was a Lender or
Lender Affiliate on the trade date for such Derivative Obligation (or an assignee of such Person). 
  
 “Effective Date” means the Effective Date as defined in the Credit Agreement. 
  
 “Eligible Transferee” means (a) a special-purpose company
created and used solely for purposes of effecting a Receivables Financing, whether or not a Subsidiary of the Borrower, or (b) any other Person which is not a Subsidiary of the Borrower. 
  
 “Event of Default” means any Event of Default as defined in the Credit Agreement and any similar event with
respect to any Secured Derivative Obligation that permits the acceleration of the maturity thereof (or an equivalent remedy). 
  
 “Existing Receivables SPV Accounts” has the meaning set forth in Section 5(b). 
  
 “First Secured Derivative Obligations”
means the Derivative Obligations that are designated by the Borrower as “First Secured Derivative Obligations” pursuant to Section 20. For the avoidance of doubt, unless the context otherwise requires, any reference herein to the
“amount” or the “principal amount” of a First Secured Derivative Obligation shall refer to then current Mark-to-Market Value of such First Secured Derivative Obligation. 
  

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 “Lien Grantor” means the Borrower. 
  
 “Liquid Investment” means (i) direct obligations of the
United States or any agency thereof, (ii) obligations guaranteed by the United States or any agency thereof, (iii) time deposits and money market deposit accounts issued by or guaranteed by or placed with a Lender, and (iv) fully collateralized
repurchase agreements for securities described in clause (i) or (ii) above entered into with a Lender, provided in each case that such Liquid Investment (x) matures within 30 days after it is first included in the Collateral and (y) is in a
form, and is issued and held in a manner, that in the reasonable judgment of the Collateral Agent permits appropriate measures to have been taken to perfect security interests therein. 
  
 “Liquidated Secured Obligation” means at any time any Secured Obligation (or portion thereof) that is not
an Unliquidated Secured Obligation at such time. 
  
 “Mark-to-Market Value” means, at any date with respect to any Derivative Obligation, the lesser of (i) the amount that would be payable by the Borrower if the applicable Derivative Contract were terminated at such time in
circumstances in which the Borrower was the defaulting party, taking into account the effect of any enforceable netting arrangement between the parties to such Derivative Contract with respect to mutual obligations in respect of other Secured
Derivative Obligations between such parties and (ii) the amount stated in the applicable Derivative Contract to be the maximum amount which can be asserted as a secured claim against the Collateral. 
  
 “Opinion of Counsel” means a written opinion of legal
counsel (who may be counsel to the Lien Grantor or other counsel, in either case approved by the Administrative Agent in a writing delivered to the Collateral Agent, which approval shall not be unreasonably withheld) addressed and delivered to the
Collateral Agent. 
  
 “own” refers to the
possession of sufficient rights in property to grant a security interest therein as contemplated by UCC Section 9-203, and “acquire” refers to the acquisition of any such rights. 
  
 “Perfection Certificate” means a certificate from the Lien
Grantor substantially in the form of Exhibit A, completed and supplemented with the schedules contemplated thereby to the reasonable satisfaction of the Collateral Agent, and signed by an officer of the Lien Grantor. 
  
 “Permitted Liens” means (i) the Transaction Liens and (ii)
any other Liens on the Collateral permitted to be created or assumed or to exist pursuant to the Credit Agreement, including such Liens arising in connection with Receivables Financings (including the Effective Date Receivables Financing).

  
 “Pledged”, when used in conjunction with any
type of asset, means at any time an asset of such type that is included (or that creates rights that are included) in the Collateral at such time. For example, “Pledged Inventory” means Inventory that is included in the Collateral at such
time. 
  
 “Post-Petition Interest” means any
interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of the Lien Grantor (or would accrue but for the operation of applicable bankruptcy or insolvency laws),
whether or not such interest is allowed or allowable as a claim in any such proceeding. 
  
 “Proceeds” means all proceeds of, and all other profits, products, rents or receipts, in whatever form, arising from the collection, sale, lease, exchange, assignment, licensing or other disposition
of, or other realization upon, any Collateral, including all claims of the Lien Grantor against third parties for loss of, damage to or destruction of, or for proceeds payable under, or unearned premiums with respect to, policies of insurance in
respect of, any Collateral, and any condemnation or requisition payments with respect to any Collateral. 
  
 “Receivables” means all Accounts owned by the Lien Grantor and all other rights, titles or interests which, in accordance with GAAP would
be included in receivables on its balance sheet (including any such Accounts and/or rights, titles or interests that might be characterized as Chattel Paper, Instruments or General Intangibles 

  

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under the Uniform Commercial Code in effect in any jurisdiction), in each case arising from the sale, lease, exchange or other disposition of Inventory, and
all of the Lien Grantor’s rights to any goods, services or other property related to any of the foregoing (including returned or repossessed goods and unpaid seller’s rights of rescission, replevin, reclamation and rights to stoppage in
transit), and all collateral security and supporting obligations of any kind given by any Person with respect to any of the foregoing. 
  
 “Receivables SPV” means U.S. Steel Receivables LLC, a Delaware limited liability company and a wholly-owned Subsidiary of the
Borrower. 
  
 “Related Documents” means the
Credit Agreement, any promissory notes issued pursuant to Section 2.09(e) of the Credit Agreement, the Security Documents, the Subsidiary Guarantee Agreements and the documentation governing the Secured Derivative Obligations. 
  
 “Related Parties” means, with respect to any specified
Person, such Person’s Affiliates and the respective directors, officers, employees, agents and advisors of such Person and its Affiliates. 
  
 “Related Transferred Rights” has the meaning specified in Section 2(b) hereof. 
  
 “Release Conditions” means the following conditions for
terminating all the Transaction Liens: 
  
 (i)    all Commitments under the Credit Agreement shall have expired or been terminated; 
  
 (ii)    all Liquidated Secured Obligations shall have been paid in full; and 
  
 (iii)    no Unliquidated Secured
Obligation shall remain outstanding or such Unliquidated Secured Obligation shall be cash collateralized to an extent and in a manner reasonably satisfactory to each affected Secured Party. 
  
 “Second Secured Derivative Obligations”
means all Secured Derivative Obligations that are not First Secured Derivative Obligations. For the avoidance of doubt, unless the context otherwise requires, any reference herein to the “amount” or the “principal amount” of a
Second Secured Derivative Obligation shall refer to then current Mark-to-Market Value of such Second Secured Derivative Obligation. 
  
 “Secured Agreement”, when used with respect to any Secured Obligation, refers collectively to each instrument, agreement or other
document that sets forth obligations of the Lien Grantor and/or rights of the holder with respect to such Secured Obligation. 
  
 “Secured Derivative Obligations” means the Derivative Obligations that are designated by the Borrower as additional Secured Obligations
pursuant to Section 20. 
  
 “Secured Loan
Obligations” means all principal of all Loans and LC Reimbursement Obligations outstanding from time to time under the Credit Agreement, all interest (including Post-Petition Interest) on such Loans and LC Reimbursement Obligations and all
other amounts now or hereafter payable by the Borrower pursuant to the Loan Documents. 
  
 “Secured Obligations” means the Secured Loan Obligations and the Secured Derivative Obligations. 
  
 “Secured Parties” means the holders from time to time of the Secured Obligations, and “Secured Party” means any of them
as the context may require. 
  
 “Security
Documents” means this Agreement, the Intercreditor Agreement and all other supplemental or additional security agreements, control agreements, or similar instruments delivered pursuant to the Loan Documents. 
  
 “Supporting Obligation” means a “supporting
obligation” (as such term is defined in UCC Section 9-102). 
  

 4 

 “Sweep Period” means (i) the period that begins on the first date on which
Facility Availability is less than or equal to $100,000,000 and ends on the first date when all Release Conditions are satisfied and (ii) each period that begins upon the occurrence of (x) an Event of Default described in Section 7(a), Section 7(i),
Section 7(j) or Section 7(k) of the Credit Agreement, or (y) an Event of Default caused by the Borrower’s failure to perform the covenant contained in Section 6.13 of the Credit Agreement, and ends when no Event of Default is continuing;
provided that, except in the case of a Sweep Period that begins upon the occurrence of any Event of Default described in Section 7(a), Section 7(i), Section 7(j) or Section 7(k) of the Credit Agreement with respect to the Borrower (which
Sweep Period shall commence automatically upon the occurrence of such Event of Default), no Sweep Period shall be deemed to have commenced unless and until the Collateral Agent shall have so determined and shall have so notified the Borrower.

  
 “Transaction Liens” means the Liens granted
by the Lien Grantor under the Security Documents. 
  
 “Transferred Receivables” means any Receivables that have been sold, contributed or otherwise transferred to an Eligible Transferee in connection with a Receivables Financing that is not prohibited under the Credit
Agreement or this Agreement (including, without limitation, the Effective Date Receivables Financing). 
  
 “UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York; provided that, if perfection or
the effect of perfection or non-perfection or the priority of any Transaction Lien on any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “UCC” means the Uniform Commercial
Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority. 
  
 “Unliquidated Secured Obligation” means, at any time, any Secured Obligation (or portion thereof) that is
contingent in nature or unliquidated at such time, including any Secured Obligation that is: 
  
 (i)    an obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it; 

 
 (ii)    any other obligation
(including any guarantee) that is contingent in nature at such time; or 
  
 (iii)    an obligation to provide collateral to secure any of the foregoing types of obligations. 
  
 (d)    Terms Generally.  The definitions of terms herein (including those incorporated by reference to the UCC or to
another document) apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun includes the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word
“shall”. Unless the context requires otherwise, (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to
time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and
assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d)
all references herein to Sections, Exhibits and Schedules shall be construed to refer to Sections of, and Exhibits and Schedules to, this Agreement and (e) the word “property” shall be construed to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and contract rights. 
  
 SECTION 2.  Grant of Transaction Liens. 
  
 (a)    The Lien Grantor, in order to secure the Secured Obligations, grants to the Collateral Agent for the benefit of the Secured
Parties a continuing security interest in all the following property of the Lien Grantor, whether now owned or existing or hereafter acquired or arising and regardless of where located, subject to the exceptions set forth in Section 2(b):

  
 (i)    all Inventory;

  

 5 

 (ii)    all Receivables; 
  
 (iii)    all Contracts; 
  
 (iv)    all Blocked Accounts and the Cash
Collateral Account; 
  
 (v)    all books and records (including customer lists, credit files, computer programs, printouts and other computer materials and records) of the Lien Grantor pertaining to any of its Collateral; and 
  
 (vi)    all other Proceeds of the
Collateral described in the foregoing clauses (i) through (iv). 
  
 (b)    The Collateral shall not include Transferred Receivables and (i) rights to payment and collections in respect of such Transferred Receivables, (ii) security interests or Liens and property subject thereto
purporting to secure or guarantee payment of such Transferred Receivables, (iii) guarantees, letters of credit, acceptances, insurance and other arrangements from time to time supporting or securing payment of such Transferred Receivables, (iv) all
invoices, documents, books, records and other information with respect to such Transferred Receivables or the obligors thereon, (v) with respect to any such Transferred Receivables, the transferee’s interest in the product (including returned
product), the sale of which by such transferee gave rise to such Transferred Receivables and (vi) all Proceeds of the items described in subclauses 2(b)(i) through 2(b)(v) (preceding subclauses (b)(i) through (b)(vi), collectively, the
“Related Transferred Rights”). 
  
 (c)    With respect to each right to payment or performance included in the Collateral from time to time, the Transaction Lien granted therein includes a continuing security interest in all right, title and interest of
the Lien Grantor in and to (i) any Supporting Obligation that supports such payment or performance and (ii) any Lien that (x) secures such right to payment or performance or (y) secures any such Supporting Obligation. 
  
 (d)    The Transaction Liens are granted as security only
and shall not subject the Collateral Agent or any other Secured Party to, or transfer or in any way affect or modify, any obligation or liability of the Lien Grantor with respect to any of the Collateral or any transaction in connection therewith.

  
 SECTION 3.  General
Representations and Warranties.  The Lien Grantor represents and warrants that: 
  
 (a)    The Lien Grantor is duly organized, validly existing and in good standing under the laws of the jurisdiction identified as its jurisdiction of organization in its Perfection Certificate.

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

(c)    The Lien Grantor has not performed any acts that might prevent the Collateral Agent from enforcing any of the provisions of
the Security Documents or that would limit the Collateral Agent in any such enforcement. No financing statement, security agreement, mortgage or similar or equivalent document or instrument covering all or part of the Collateral owned by such Lien
Grantor is on file or of record in any jurisdiction in which such filing or recording would be effective to perfect or record a Lien on such Collateral, except (x) financing statements with respect to the security agreement dated as of November 30,
2001 between the Borrower and the Collateral Agent and (y) financing statements, mortgages or other similar or equivalent documents with respect to Permitted Liens. After the Effective Date, no Collateral owned by such Lien Grantor will be in the
possession or under the control of any other Person having a Lien thereon, other than a Permitted Lien. 
  
 (d)    The Transaction Liens on all Collateral owned by the Lien Grantor (i) have been validly created, (ii) will attach to each
item of such Collateral on the Effective Date (or, if such Lien Grantor first obtains rights thereto on a later date, on such later date) and (iii) when so attached, will secure all the Secured Obligations. 
  

 6 

 (e)    The Lien Grantor has delivered a Perfection Certificate to the Collateral
Agent. The information set forth therein is correct and complete as of the Effective Date. After the Effective Date, the Collateral Agent or the Administrative Agent may obtain, at the Lien Grantor’s expense, a file search report from each UCC
filing office listed in its Perfection Certificate, showing the filing made at such filing office to perfect the Transaction Liens on the Collateral. 
  
 (f)    The Transaction Liens constitute perfected security interests in the Collateral owned by the Lien Grantor to the extent that a
security interest therein may be perfected by filing pursuant to the UCC, prior to all Liens and rights of others therein except Permitted Liens. No registration, recordation or filing with any governmental body, agency or official is required in
connection with the execution or delivery of the Security Documents or is necessary for the validity or enforceability thereof or for the perfection of the Transaction Liens pursuant to the UCC or for the enforcement of the Transaction Liens
pursuant to the UCC. 
  
 (g)    The Lien
Grantor has taken, and will continue to take, all actions necessary under the UCC to perfect its interest in any Receivables purchased or otherwise acquired by it, as against its assignors and creditors of its assignors. 
  
 (h)    The Lien Grantor’s Collateral is insured as
required by the Credit Agreement. 
  
 (i)    Any Inventory produced by the Lien Grantor has or will have been produced in compliance with the applicable requirements of the Fair Labor Standards Act, as amended. 
  
 (j)    The Existing Receivables SPV Accounts are all of
the accounts owned by Receivables SPV. Other than (i) the Existing Receivables SPV Accounts, (ii) the Cash Collateral Account, and (iii) any Blocked Account, there are no accounts owned by the Lien Grantor or Receivables SPV into which any
collections or other payments or proceeds in respect of Pledged Receivables may be deposited. 
  
 SECTION 4.  Further Assurances; General Covenants.  The Lien Grantor covenants as follows: 
  
 (a)    The Lien Grantor will, from time to time, at its own expense, execute, deliver, authorize, file
and record any statement, assignment, instrument, document, agreement or other paper and take any other action (including (x) any filing of financing or continuation statements under the UCC, (y) at any time when the Effective Date Receivables
Financing shall have terminated and been paid in full and not been replaced with another Receivables Financing on terms satisfactory to the Administrative Agent, causing any lockbox, concentration or similar account into which payments with respect
to Receivables then owned by the Lien Grantor will be received to be subjected to Blocked Account Agreements and (z) at any time when the Effective Date Receivables Financing shall have terminated and been replaced with another Receivables Financing
on terms satisfactory to the Administrative Agent, causing the appropriate parties to such replacement Receivables Financing to execute an intercreditor agreement that is substantially identical to the Intercreditor Agreement) that from time to time
may be reasonably necessary or desirable, or that the Collateral Agent may reasonably request, in order to: 
  
 (i)    create, preserve, perfect, confirm or validate the Transaction Liens on the Collateral; 
  
 (ii)    enable the Collateral Agent and
the other Secured Parties to obtain the full benefits of the Security Documents; or 
  
 (iii)    enable the Collateral Agent to exercise and enforce any of its rights, powers and remedies with respect to
any of the Collateral. 
  
 To the extent permitted by applicable law, the Lien
Grantor authorizes the Collateral Agent to execute and file such financing statements or continuation statements without the Lien Grantor’s signature appearing thereon. The 

  

 7 

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

 
 (b)    The Lien Grantor will not (i) change its name
or structure as a corporation, or (ii) change its location (determined as provided in UCC Section 9-307) unless it shall have given the Collateral Agent prior notice thereof and delivered an Opinion of Counsel with respect thereto in accordance with
Section 4(c). 
  
 (c)    At least 30 days
before it takes any action contemplated by Section 4(b), the Lien Grantor, at its own expense, will cause to be delivered to the Collateral Agent an Opinion of Counsel, in form and substance reasonably satisfactory to the Collateral Agent, to the
effect that (i) all financing statements and amendments or supplements thereto, continuation statements and other documents required to be filed or recorded in order to perfect and protect the Transaction Liens against all creditors of and
purchasers from the Lien Grantor after it takes such action (except any applicable continuation statements specified in such Opinion of Counsel that are to be filed more than six months after the date thereof) have been filed or recorded in each
office necessary for such purpose, (ii) all fees and taxes, if any, payable in connection with such filings or recordations have been paid in full and (iii) except as otherwise agreed by the Required Lenders, such action will not adversely affect
the perfection or priority of the Transaction Lien on any Collateral to be owned by the Lien Grantor after it takes such action or the accuracy of the Lien Grantor’s representations and warranties herein relating to such Collateral. 

 
 (d)    The Lien Grantor will not sell, lease,
exchange, assign or otherwise dispose of, or grant any option with respect to, any of its Collateral; provided that the Lien Grantor may do any of the foregoing unless (i) doing so would breach a covenant in the Credit Agreement or (ii) an
Event of Default shall have occurred and be continuing and the Collateral Agent shall have notified the Lien Grantor that its right to do so is terminated, suspended or otherwise limited. Concurrently with any sale or other disposition (except a
lease) permitted by the foregoing proviso, the Transaction Liens on the assets sold or disposed of (but not in any Proceeds arising from such sale or disposition) will cease immediately without any action by the Collateral Agent or any other
Secured Party. The Collateral Agent will, at the Borrower’s expense, execute and deliver to the Lien Grantor such documents as the Lien Grantor shall reasonably request to evidence the fact that any asset so sold or disposed of is no longer
subject to a Transaction Lien. 
  
 (e)    The
Lien Grantor will, promptly upon request, provide to the Collateral Agent all information and evidence concerning the Collateral that the Collateral Agent may reasonably request from time to time to enable it to enforce the provisions of the
Security Documents. 
  
 (f)    From time to
time upon request by the Collateral Agent, the Lien Grantor will, at its own expense, cause to be delivered to the Secured Parties an Opinion of Counsel satisfactory to the Collateral Agent as to such matters relating to the transactions
contemplated hereby as the Collateral Agent may reasonably request. 
  
 SECTION 5.  Cash Collateral Account.  (a) If and when required for purposes hereof, the Collateral Agent will establish an account (the “Cash Collateral Account”), in the name and
under the exclusive control of the Collateral Agent, into which all amounts owned by the Lien Grantor that are to be deposited therein pursuant to the Loan Documents shall be deposited from time to time. 
  
 (b)    On or prior to the Effective Date (or such longer
period as the Borrower, the Collateral Agent and the Co-Collateral Agent may agree), the Lien Grantor shall have caused Receivables SPV to have subjected all of its then existing accounts (collectively, the “Existing
Receivables SPV Accounts”) to Blocked Account 

  

 8 

 
Agreements, each of which Blocked Account Agreements shall, to the extent the account subject thereto is a “Lock-Box Account” or
“Concentration Account” (each as defined in the Receivables Purchase Agreement), (i) by its terms, first become effective immediately upon receipt by the “Lockbox Box” or “Concentration Account Bank” (each as
defined in the Receivables Purchase Agreement) or other depositary bank at which such account is maintained (the “Depositary Bank”) of written notice from The Bank of Nova Scotia, as collateral agent under the Effective Date
Receivables Financing (the “Receivables Collateral Agent”), specifying that the Effective Date Receivables Financing has terminated and all monetary obligations in respect thereof have been satisfied in full and that
the blocked account agreement in effect with respect to such “Lockbox Account” or “Concentration Account” (each as defined in the Receivables Purchase Agreement) in connection with the Effective Date Receivables Financing shall
be terminated in accordance with its terms (or upon written notice from the Collateral Agent to such effect, if (x) the Receivables Collateral Agent has failed to deliver such notice within five Business Days of the date on which it is initially
obligated to do so pursuant to the Intercreditor Agreement, (y) the Collateral Agent shall have delivered a Final Notification Request (as defined in the Intercreditor Agreement), and (z) the Funding Agents (as defined in the Intercreditor
Agreement) have failed to comply, or to cause the Receivables Collateral Agent to comply, with such Final Notification Request within three Business Days of the date on which such Final Notification Request is effective under the Intercreditor
Agreement), (ii) by its terms, terminate upon receipt by the Depositary Bank of written notice from the Collateral Agent to the effect that the Effective Date Receivables Financing has been replaced with another Receivables Financing on terms
satisfactory to the Administrative Agent, such that the accounts of Receivables SPV and the lockbox accounts of the Lien Grantor may be subjected to blocked account agreements in connection with such replacement Receivables Financing and (iii)
expressly provide that its terms may not be amended or modified without the consent of the Receivables Collateral Agent. 
  
 (c)    If directed to do so by the Collateral Agent at any time during a Sweep Period or when an Event of Default has occurred and is
continuing, the Borrower shall cause to be deposited in the account referred to in clause (d) below, promptly upon receipt thereof, (i) all payments received in respect of the Pledged Receivables and (ii) all other Proceeds of the Collateral.

  
 (d)    On or prior to the Effective Date,
the Borrower shall have caused to be subjected to a Blocked Account Agreement any lockbox and any corresponding deposit account, any concentration account and any account into which payments from Receivables SPV to the Borrower in respect of the
purchase price of Transferred Receivables may be received. 
  
 (e)    Unless (x) a Sweep Period shall have occurred and be continuing, (y) an Event of Default shall have occurred and be continuing and the Required Lenders shall have instructed the Collateral Agent to stop
withdrawing amounts from the Cash Collateral Account pursuant to this subsection or (z) the maturity of the Loans (or other Secured Obligations) shall have been accelerated pursuant to Article 7 of the Credit Agreement (or otherwise), the Collateral
Agent shall withdraw amounts from the Cash Collateral Account (other than amounts required to be deposited in the Cash Collateral Account pursuant to Section 2.10(b) or Section 5.12(b) of the Credit Agreement) and remit such amounts to, or as
directed by, the Borrower from time to time. 
  
 (f)    If an Event of Default shall have occurred and be continuing, the Collateral Agent may (i) retain all cash and investments then held in the Cash Collateral Account, (ii) liquidate any or all investments held
therein and/or (iii) withdraw any amounts held therein and apply such amounts as provided in Section 7. Additionally, and without limiting the generality of the foregoing, during any Sweep Period (i) all amounts held in the Cash Collateral
Account (other than amounts deposited therein pursuant to Section 2.05(j), Section 2.10(b) or Section 5.12(b) of the Credit Agreement as cash collateral for the LC Exposure) shall be applied on a daily basis to the outstanding principal balance of
the Base Rate Loans or, if applicable, as provided in Section 7 and (ii) following repayment in full of all outstanding Base Rate Loans pursuant to clause (i), any remaining amounts held in the Cash Collateral Account shall continue to be held in
the Cash Collateral Account and (other than amounts deposited therein pursuant to Section 2.05(j), Section 2.10(b) or Section 5.12(b) of the Credit Agreement as cash collateral for the LC Exposure) shall be applied to the outstanding principal
balance of maturing Eurodollar Loans upon expiration of the Interest Periods applicable thereto. 
  

 9 

 (g)    Funds held in the Cash Collateral Account may, until withdrawn or otherwise
applied pursuant hereto, be invested and reinvested in such Liquid Investments as the Borrower shall request from time to time; provided that, if an Event of Default shall have occurred and be continuing, the Collateral Agent may select such
Liquid Investments. 
  
 (h)    If immediately
available cash on deposit in the Cash Collateral Account is not sufficient to make any distribution or withdrawal to be made pursuant hereto, the Collateral Agent will cause to be liquidated, as promptly as practicable, such investments held in or
credited to the Cash Collateral Account as shall be required to obtain sufficient cash to make such distribution or withdrawal and, notwithstanding any other provision hereof, such distribution or withdrawal shall not be made until such liquidation
has taken place. 
  
 SECTION
6.  Remedies upon Event of Default.  (a) If an Event of Default shall have occurred and be continuing, the Collateral Agent may exercise (or cause its sub-agents to exercise) any or all of the remedies available to it (or
to such sub-agents) under the Security Documents. 
  
 (b)    Without limiting the generality of the foregoing, if an Event of Default shall have occurred and be continuing, the Collateral Agent may exercise on behalf of the Secured Parties all the rights of a secured party
under the UCC (whether or not in effect in the jurisdiction where such rights are exercised) with respect to any Collateral and, in addition, the Collateral Agent may, without being required to give any notice, except as herein provided or as may be
required by mandatory provisions of law, withdraw all cash held in the Cash Collateral Account and apply such cash as provided in Section 7 and, if there shall be no such cash or if such cash shall be insufficient to pay all the Secured Obligations
in full, sell, lease, license or otherwise dispose of the Collateral or any part thereof. Notice of any such sale or other disposition shall be given to the Lien Grantor as required by Section 9. 
  
 (c)    Without limiting the generality of the foregoing,
during any Sweep Period, the Collateral Agent may (i) exercise all of the remedies described in Section 5(f) and (ii) cause all amounts constituting Collateral that are held in any lockbox, concentration or other account of the Lien Grantor then
subject to an effective Blocked Account Agreement (it being understood that any Blocked Account Agreement with respect to an account that is a “Lockbox Account” or “Concentration Account” (each as defined in the Receivables
Purchase Agreement) shall only become effective in accordance with Section 5(b)(i)) to be transferred on a daily basis to the Cash Collateral Account. 
  
 SECTION 7.  Application of Proceeds.  (a) If an Event of Default shall have occurred and be continuing, the
Collateral Agent may apply (i) any cash held in the Cash Collateral Account and (ii) the proceeds of any sale or other disposition of all or any part of the Collateral, in the following order of priorities: 
  
 first, to pay the expenses of such sale or other
disposition, including reasonable compensation to agents of and counsel for the Collateral Agent, and all expenses, liabilities and advances incurred or made by the Collateral Agent in connection with the Security Documents, and any other amounts
then due and payable to the Collateral Agent pursuant to Section 8 or to any Agent pursuant to the Credit Agreement; 
  
 second, to pay the unpaid principal of the Secured Obligations (other than Second Secured Derivative Obligations) ratably (or to
provide for the payment thereof pursuant to Section 7(b)), until payment in full of the principal of all such Secured Obligations (other than Second Secured Derivative Obligations shall have been made (or so provided for); 
  
 third, to pay ratably all interest (including
Post-Petition Interest) on the Secured Obligations (other than Secured Derivative Obligations) and all commitment and other fees payable under the Related Documents, until payment in full of all such interest and fees shall have been made;

  
 fourth, to pay all other Secured
Obligations (other than Secured Derivative Obligations) ratably (or to provide for the payment thereof pursuant to Section 7(b)), until payment in full of all such other Secured Obligations (other than Secured Derivative Obligations) shall have been
made (or so provided for); 
  

 10 

 fifth, to pay ratably the unpaid principal of the Second Secured Derivative
Obligations (or to provide payment therefor pursuant to Section 7(b)) until payment in full of the principal of all Second Secured Derivative Obligations shall have been made (or so provided for); 
  
 sixth, to pay ratably the all interest (including
Post-Petition Interest) on the Secured Derivative Obligations, until payment in full of all such interest has been made; and 
  
 finally, to pay to the Lien Grantor, or as a court of competent jurisdiction may direct, any surplus then remaining from the
proceeds of the Collateral owned by it. 
  
 The Collateral Agent may make such
distributions hereunder in cash or in kind or, on a ratable basis, in any combination thereof. 
  
 Notwithstanding anything to the contrary herein, the parties hereto agree that the unpaid principal (i.e., the Mark-to-Market Value) of the First Secured Derivative Obligations shall be paid, ratably with the unpaid
principal of other Secured Obligations (other than Second Secured Derivative Obligations), pursuant to clause second above; provided that if on the date of any application of cash or proceeds in accordance with this Section 7(a), the
aggregate Mark-to-Market Value of First Secured Derivative Obligations exceeds an amount equal to the difference of $75,000,000 less the aggregate Mark-to-Market Value of First Secured Derivative Obligations previously paid pursuant to this
Section 7(a) (such difference, the “Available Derivative Amount” at such date), then: (x) the Secured Obligations payable pursuant to clause second above shall the Mark-to-Market Value of First Secured Derivative Obligations
in an aggregate amount equal to the Available Derivative Amount at such date (which Available Derivative Amount shall represent and be comprised of a ratable portion (the “Permitted Ratable Portion”) of the Mark-to-Market Value of
each First Secured Derivative Obligation), and (y) the portion of the Mark-to-Market Value of each First Secured Derivative Obligation that is in excess of the Permitted Ratable Portion referred to in clause (x) above (and is therefore not paid
ratably with the unpaid principal of Secured Obligations pursuant to clause second above) shall, for all purposes of this Section 7(a), be treated as and deemed to be unpaid principal of a Second Secured Derivative Obligation, and shall be
paid, ratably with the unpaid principal of all other Second Secured Derivative Obligations, pursuant to clause fifth above. 
  
 (b)    If at any time any portion of any monies collected or received by the Collateral Agent would, but for the provisions of this
Section 7(b), be payable pursuant to Section 7(a) in respect of an Unliquidated Secured Obligation, the Collateral Agent shall not apply any monies to pay such Unliquidated Secured Obligation but instead shall request the holder thereof, at least 10
days before each proposed distribution hereunder, to notify the Collateral Agent as to the maximum amount of such Unliquidated Secured Obligation if then ascertainable (e.g., in the case of a letter of credit, the maximum amount available for
subsequent drawings thereunder). If the holder of such Unliquidated Secured Obligation does not notify the Collateral Agent of the maximum ascertainable amount thereof at least two Domestic Business Days before such distribution, such Unliquidated
Secured Obligation will not be entitled to share in such distribution. If such holder does so notify the Collateral Agent as to the maximum ascertainable amount thereof, the Collateral Agent will allocate to such holder a portion of the monies to be
distributed in such distribution, calculated as if such Unliquidated Secured Obligation were outstanding in such maximum ascertainable amount. However, the Collateral Agent will not apply such portion of such monies to pay such Unliquidated Secured
Obligation, but instead will hold such monies or invest such monies in Liquid Investments. All such monies and Liquid Investments and all proceeds thereof will constitute Collateral hereunder, but will be subject to distribution in accordance with
this Section 7(b) rather than Section 7(a). The Collateral Agent will hold all such monies and Liquid Investments and the net proceeds thereof in trust until all or part of such Unliquidated Secured Obligation becomes a Liquidated Secured
Obligation, whereupon the Collateral Agent at the request of the relevant Secured Party will apply the amount so held in trust to pay such Liquidated Secured Obligation; provided that, if the other Secured Obligations theretofore paid
pursuant to the same clause of Section 7(a) (i.e., clause second, fourth or fifth) were not paid in full, the Collateral Agent will apply the amount so held in trust to pay the same percentage of such Liquidated Secured
Obligation as the 

  

 11 

 
percentage of such other Secured Obligations theretofore paid pursuant to the same clause of Section 7(a). If (i) the holder of such Unliquidated Secured
Obligation shall advise the Collateral Agent that no portion thereof remains in the category of an Unliquidated Secured Obligation and (ii) the Collateral Agent still holds any amount held in trust pursuant to this Section 7(b) in respect of such
Unliquidated Secured Obligation (after paying all amounts payable pursuant to the preceding sentence with respect to any portions thereof that became Liquidated Secured Obligations), such remaining amount will be applied by the Collateral Agent in
the order of priorities set forth in Section 7(a). 
  
 (c)    In making the payments and allocations required by this Section, the Collateral Agent may rely upon information supplied to it pursuant to Section 11(g). All distributions made by the Collateral Agent pursuant to
this Section shall be final (except in the event of manifest error) and the Collateral Agent shall have no duty to inquire as to the application by any Secured Party of any amount distributed to it. 
  
 SECTION 8.  Fees and Expenses;
Indemnification.  (a) The Lien Grantor will forthwith upon demand pay to the Collateral Agent: 
  
 (i)    the amount of any taxes that the Collateral Agent may have been required to pay by reason of the Transaction
Liens or to free any Collateral from any other Lien thereon; 
  
 (ii)    the amount of any and all reasonable out-of-pocket expenses, including transfer taxes and reasonable fees and expenses of counsel and other experts, that the Collateral Agent may incur in
connection with (x) the administration or enforcement of the Security Documents, including such expenses as are incurred to preserve the value of the Collateral or the validity, perfection, rank or value of any Transaction Lien, (y) the collection,
sale or other disposition of any Collateral or (z) the exercise by the Collateral Agent of any of its rights or powers under the Security Documents; 
  
 (iii)    the amount of any fees that the Lien Grantor shall have agreed in writing to pay to the Collateral Agent and
that shall have become due and payable in accordance with such written agreement; and 
  
 (iv)    the amount required to indemnify the Collateral Agent for, or hold it harmless and defend it against, any
loss, liability or expense (including the reasonable fees and expenses of its counsel and any experts or sub-agents appointed by it hereunder) incurred or suffered by the Collateral Agent in connection with the Security Documents, except to the
extent that such loss, liability or expense arises from the Collateral Agent’s gross negligence or willful misconduct or a breach of any duty that the Collateral Agent has under this Agreement (after giving effect to Sections 10 and 11).

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

  
 (b)    If any transfer tax, documentary
stamp tax or other tax is payable in connection with any transfer or other transaction provided for in the Security Documents, the Lien Grantor will pay such tax and provide any required tax stamps to the Collateral Agent or as otherwise required by
law. 
  
 SECTION 9.  Authority to
Administer Collateral.  The Lien Grantor irrevocably appoints the Collateral Agent its true and lawful attorney, with full power of substitution, in the name of the Lien Grantor, any Secured Party or otherwise, for the sole use and
benefit of the Secured Parties, but at the Lien Grantor’s expense, to the extent permitted by law to exercise, at any time and from time to time while an Event of Default shall have occurred and be continuing, all or any of the following powers
with respect to all or any of the Collateral (to the extent necessary to pay the Secured Obligations in full): 
  
 (a)    to demand, sue for, collect, receive and give acquittance for any and all monies due or to become due upon or
by virtue thereof, 
  

 12 

 (b)    to settle, compromise, compound, prosecute or defend any
action or proceeding with respect thereto, 
  
 (c)    to sell, lease, license or otherwise dispose of the same or the proceeds or avails thereof, as fully and effectually as if the Collateral Agent were the absolute owner thereof, and 
  
 (d)    to extend the time of payment of
any or all thereof and to make any allowance or other adjustment with reference thereto; 
  
 provided that, except in the case of Collateral that is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, the Collateral Agent will give the Lien
Grantor at least ten days’ prior written notice of the time and place of any public sale thereof or the time after which any private sale or other intended disposition thereof will be made. Any such notice shall (i) contain the information
specified in UCC Section 9-613, (ii) be Authenticated and (iii) be sent to the parties required to be notified pursuant to UCC Section 9-611(c); provided that, if the Collateral Agent fails to comply with this sentence in any respect, its
liability for such failure shall be limited to the liability (if any) imposed on it as a matter of law under the UCC. 
  
 SECTION 10.  Limitation on Duty in Respect of Collateral.  Beyond the exercise of reasonable care in the custody
and preservation thereof, the Collateral Agent will have no duty as to any Collateral in its possession or control or in the possession or control of any sub-agent or bailee or any income therefrom or as to the preservation of rights against prior
parties or any other rights pertaining thereto. The Collateral Agent will be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession or control if such Collateral is accorded treatment
substantially equal to that which it accords its own property, and will not be liable or responsible for any loss or damage to any Collateral, or for any diminution in the value thereof, by reason of any act or omission of any sub-agent or bailee
selected by the Collateral Agent in good faith or by reason of any act or omission by the Collateral Agent pursuant to instructions from the Administrative Agent, except to the extent that such liability arises from the Collateral Agent’s gross
negligence or willful misconduct. 
  
 SECTION
11.  General Provisions Concerning the Collateral Agent.  (a) Authority.  The Collateral Agent is authorized to take such actions and to exercise such powers as are delegated to the Collateral Agent by the
terms of the Security Documents, together with such actions and powers as are reasonably incidental thereto. 
  
 (b)    Coordination with Secured Parties.  To the extent requested to do so by any Secured Party, the Collateral
Agent will promptly notify such Secured Party of each notice or other communication received by the Collateral Agent hereunder and/or deliver a copy thereof to such Secured Party. As to any matters not expressly provided for herein (including (i)
the timing and methods of realization upon the Collateral and (ii) the exercise of any power that the Collateral Agent may, but is not expressly required to, exercise under any Security Document), the Collateral Agent shall act or refrain from
acting in accordance with written instructions from the Required Lenders or, in the absence of such instructions, in accordance with its discretion (subject to the following provisions of this Section). 
  
 (c)    Rights and Powers as a Secured
Party.  The Person serving as the Collateral Agent shall, in its capacity as a Secured Party, have the same rights and powers as any other Secured Party and may exercise the same as though it were not the Collateral Agent. Such Person
and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower, any of its Subsidiaries or their respective Affiliates as if it were not the Collateral Agent hereunder. 
  
 (d)    Limited Duties and
Responsibilities.  The Collateral Agent shall not have any duties or obligations under the Security Documents except those expressly set forth therein. Without limiting the generality of the foregoing, (a) the Collateral Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether an Event of Default has occurred and is continuing, (b) the Collateral Agent shall not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers 

  

 13 

 
expressly contemplated by the Security Documents that the Collateral Agent is required in writing to exercise by the Required Lenders, and (c) except as
expressly set forth in the Security Documents, the Collateral Agent shall not have any duty to disclose, and shall not be liable for any failure to disclose, any information relating to the Borrower or any of its Subsidiaries that is communicated to
or obtained by the bank serving as Collateral Agent or any of its Affiliates in any capacity. The Collateral Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02 of the Credit Agreement) or in the absence of its own gross negligence or willful misconduct. The Collateral Agent shall not be responsible
for the existence, genuineness or value of any Collateral or for the validity, perfection, priority or enforceability of any Transaction Lien, whether impaired by operation of law or by reason of any action or omission to act on its part under the
Security Documents. The Collateral Agent shall be deemed not to have knowledge of any Event of Default unless and until written notice thereof is given to the Collateral Agent by the Borrower or a Secured Party, and the Collateral Agent shall not be
responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Security Document, (ii) the contents of any certificate, report or other document delivered thereunder or
in connection therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any Security Document, (iv) the validity, enforceability, effectiveness or genuineness of any Security
Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in any Security Document. 
  
 (e)    Authority to Rely on Certain Writings, Statements and Advice.  The Collateral Agent shall be entitled to rely
on, and shall not incur any liability for relying on, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Collateral Agent
also may rely on any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon. The Collateral Agent may consult with legal counsel (who may be counsel for
the Borrower or any of its Subsidiaries), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountant or expert. The
Collateral Agent may rely conclusively on advice from the Administrative Agent as to whether at any time (i) an Event of Default under the Credit Agreement has occurred and is continuing, (ii) the maturity of the Loans has been accelerated or (iii)
any proposed action is permitted or required by the Credit Agreement. 
  
 (f)    Sub-Agents and Related Parties.  The Collateral Agent may perform any of its duties and exercise any of its rights and powers through one or more sub-agents appointed by it. The Collateral Agent
and any such sub-agent may perform any of its duties and exercise any of its rights and powers through its Related Parties. The exculpatory provisions of Section 10 and this Section shall apply to any such sub-agent and to the Related Parties of the
Collateral Agent and any such sub-agent. 
  
 (g)    Information as to Secured Obligations and Actions by Secured Parties.  For all purposes of the Security Documents, including determining the amounts of the Secured Obligations and whether a
Secured Obligation is an Unliquidated Secured Obligation or not, or whether any action has been taken under any Secured Agreement, the Collateral Agent will be entitled to rely on information from (i) the Administrative Agent for information as to
the Lenders, the Administrative Agent or the Collateral Agent, their Secured Obligations and actions taken by them, (ii) any Secured Party for information as to its Secured Obligations and actions taken by it, to the extent that the Collateral Agent
has not obtained such information from the foregoing sources, and (iii) the Borrower, to the extent that the Collateral Agent has not obtained information from the foregoing sources. 
  
 (h)    Within two Business Days after it receives or sends any notice referred to in this subsection,
the Collateral Agent shall send to the Administrative Agent and each Secured Party requesting notice thereof, copies of any notice given by the Collateral Agent to the Lien Grantor, or received by it from the Lien Grantor, pursuant to Section 6, 7,
9, 11(j) or 12; provided that such Secured Party has, at least five Domestic Business Days prior thereto, delivered to the Collateral Agent a written notice (i) stating that it holds one or more Secured Obligations and wishes to receive
copies of such notices and (ii) setting forth its address, facsimile number and e-mail address to which copies of such notices should be sent. 
  

 14 

 (i)    The Collateral Agent may refuse to act on any notice, consent, direction or
instruction from the Administrative Agent or any Secured Parties or any agent, trustee or similar representative thereof that, in the Collateral Agent’s opinion, (i) is contrary to law or the provisions of any Security Document, (ii) may expose
the Collateral Agent to liability (unless the Collateral Agent shall have been indemnified, to its reasonable satisfaction, for such liability by the Secured Parties that gave, or instructed the Agent to give, such notice, consent, direction or
instruction) or (iii) is unduly prejudicial to Secured Parties not joining in such notice, consent, direction or instruction. 
  
 (j)    Resignation; Successor Collateral Agent.  Subject to the appointment and acceptance of a successor Collateral
Agent as provided in this subsection, the Collateral Agent may resign at any time by notifying the Secured Parties and the Borrower. Upon any such resignation, the Required Lenders shall have the right, in consultation with the Lien Grantor, to
appoint a successor Collateral Agent. If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Collateral Agent gives notice of its resignation, then the retiring
Collateral Agent may, on behalf of the Secured Parties, appoint a successor Collateral Agent which shall be a bank with an office in the United States, or an Affiliate of any such bank. Upon acceptance of its appointment as Collateral Agent
hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Collateral Agent hereunder, and the retiring Collateral Agent shall be discharged from its duties and
obligations hereunder. The fees payable by the Lien Grantor to a successor Collateral Agent shall be the same as those payable to its predecessor unless otherwise agreed by the Lien Grantor and such successor. After the Collateral Agent’s
resignation hereunder, the provisions of this Section and Section 10 shall continue in effect for the benefit of such retiring Collateral Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while the retiring Collateral Agent was acting as Collateral Agent. 
  
 SECTION 12.  Termination of Transaction Liens; Release of Collateral. 
  
 (a)    The Transaction Liens shall terminate when all the Release Conditions are satisfied. 
  
 (b)    The Transaction Liens (x) with respect to any
Pledged Receivables shall terminate when such Receivables have become Transferred Receivables and (y) with respect to any other Collateral shall terminate upon the sale of such Collateral to a Person other than the Lien Grantor in a transaction not
prohibited by the Credit Agreement. In each case, such termination shall not require the consent of any Secured Party, and the Collateral Agent and any third party shall be fully protected in relying on a certificate of the Lien Grantor as to
whether any Pledged Receivables qualify as Transferred Receivables (including without limitation whether the transfer thereof is permitted under the Credit Agreement and this Agreement). 
  
 (c)    In the case of any Pledged Receivables, the Transaction Liens with respect to the Related
Transferred Rights shall terminate when such Pledged Receivables become Transferred Receivables. Such termination shall not require the consent of any Secured Party. If the Borrower delivers a certificate pursuant to Section 12(b) stating that any
Pledged Receivables qualify as Transferred Receivables, the Collateral Agent and any third party shall be fully protected in relying on such certificate as conclusive proof that the Related Transferred Rights are not Collateral. 
  
 (d)    At any time before the Transaction Liens
terminate, the Collateral Agent may, at the written request of the Lien Grantor (and subject to clause (e) below), (i) release any Collateral (but not all or any substantial portion of the Collateral) with the prior written consent of the Required
Lenders or (ii) release any substantial portion of the Collateral with the prior written consent of all the Lenders. For purposes hereof, a release of Collateral comprising 10% or more of the Borrowing Base in effect on the date of such release
shall constitute release of a substantial portion of the Collateral. 
  
 (e)    Notwithstanding anything to the contrary herein, at the written request of the Lien Grantor, the Collateral Agent may elect to release any portion (but not all or substantially all) of the Collateral without the

  

 15 

 
consent of any Lender, so long as (i) the Co-Collateral Agent has consented in writing to such release, and (ii) immediately before and after giving pro
forma effect to any such release, (x) the aggregate amount of the Collateral (calculated on a book value basis) released from and after the Effective Date in reliance on this Section 12(e) would not exceed $150,000,000 and (y) Average Facility
Availability would be equal to or greater than $300,000,000. 
  
 (f)    Upon any termination of a Transaction Lien or release of Collateral, the Collateral Agent will, at the expense of the Lien Grantor, execute and deliver to the Lien Grantor such documents as the Lien Grantor shall
reasonably request to evidence the termination of such Transaction Lien or the release of such Collateral, as the case may be. 
  
 SECTION 13.  Notices.  Except in the case of notices and other communications expressly permitted to be given by
telephone, each notice, request or other communication given to any party hereunder shall be in writing delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy (or, in the case of any notice to a
Secured Party pursuant to Section 11(b) or Section 11(h), transmitted by e-mail), as follows: 
  
 (a)    in the case of the Lien Grantor: 
  
 United States Steel Corporation 
 600 Grant Street 
 Room 1325 
 Pittsburgh, PA 15219 
 Attention: Treasurer 
 Facsimile: (412) 433-1167 
 E-mail: ltbrockway@uss.com 
  
 (b)    in the case of the Collateral Agent: 
  
 J.P. Morgan Chase Bank 
 Mining and Metals Group 
 270 Park Avenue 
 New York, NY 10017 
 Attention: Carlos Morales 
 Facsimile: (212) 270-4724 
 E-mail: carlos.morales@chase.com 
  
 and with a copy to: 
  
 J.P. Morgan Chase Bank 
 270 Park Avenue 
 20th Floor 
 New York, NY 10017 
 Attention: Jason Chang 
 Facsimile: (212) 270-7449 
 E-mail: jason.change@jpmorgan.com 
  
 with a copy to the Co-Collateral Agent: 
  
 General Electric Capital Corporation 
 500 West Monroe Street 
 12th
Floor 
 Chicago, IL 60661 
 Attention: Account Manager - United States Steel 
 Facsimile: (312) 463-3840 
  

 16 

 (c)    in the case of any Lender, to the Collateral Agent to be
forwarded to such Lender at its address or facsimile number specified in or pursuant to Section 9.01 of the Credit Agreement; or 
  
 (d)    in the case of any Secured Party requesting notice under Section 11(h), such address, facsimile number or
e-mail address as such party may hereafter specify for the purpose by notice to the Collateral Agent. 
  
 All notices and other communications given to any party hereto in accordance with the terms of this Agreement shall be deemed to have been given on the date of receipt. Any party may change its address, facsimile
number and/or e-mail address for purposes of this Section by giving notice of such change to the Collateral Agent and the Lien Grantor in the manner specified above. 
  
 SECTION 14.  No Implied Waivers; Remedies Not Exclusive.  No failure by the
Collateral Agent or any Secured Party to exercise, and no delay in exercising and no course of dealing with respect to, any right or remedy under any Related Document shall operate as a waiver thereof; nor shall any single or partial exercise by the
Collateral Agent or any Secured Party of any right or remedy under any Related Document preclude any other or further exercise thereof or the exercise of any other right or remedy. The rights and remedies specified in the Related Documents are
cumulative and are not exclusive of any other rights or remedies provided by law. 
  
 SECTION 15.  Successors and Assigns.  This Agreement is for the benefit of the Collateral Agent and the Secured Parties. If all or any part of any Secured Party’s
interest in any Secured Obligation is assigned or otherwise transferred, the transferor’s rights hereunder, to the extent applicable to the obligation so transferred, shall be automatically transferred with such obligation. This Agreement shall
be binding on the Lien Grantor and its successors and assigns. 
  
 SECTION 16.  Amendments and Waivers.  Neither this Agreement nor any provision hereof may be waived, amended, modified or terminated except pursuant to an agreement or agreements in writing entered
into by the parties hereto, with the consent of such Lenders and/or Agents as are required to consent thereto under Section 9.02(b) of the Credit Agreement. 
  
 SECTION 17.  Choice of Law.  This Agreement shall be construed in accordance with and governed by the laws of
the State of New York, except as otherwise required by mandatory provisions of law and except to the extent that remedies provided by the laws of any jurisdiction other than the State of New York are governed by the laws of such jurisdiction.

  
 SECTION 18.  Waiver of Jury
Trial.  EACH PARTY HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO ANY SECURITY DOCUMENT OR ANY
TRANSACTION CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION. 
  
 SECTION
19.  Severability.  If any provision of any Security Document is invalid or unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (i) the other provisions of the Security Documents shall remain
in full force and effect in such jurisdiction and shall be liberally construed in favor of the Collateral Agent and the Secured Parties in order to carry out the intentions of the parties thereto as nearly as may be possible and (ii) the invalidity
or unenforceability of such provision in such jurisdiction shall not affect the validity or enforceability thereof in any other jurisdiction. 
  

 17 

 SECTION 20.  Additional Secured Obligations.  (a) Subject to
the requirements set forth in clauses (b) and (c) of this Section 20, the Borrower from time to time may designate any Derivative Obligation as a “Secured Derivative Obligation” for purposes hereof by delivering to the Collateral Agent a
certificate signed by a Financial Officer (an “Additional Secured Obligation Certificate”) that (i) identifies such Derivative Obligation and the related Derivative Contract (including the name and address of the counterparty
thereto, the notional principal amount thereof and the expiration date thereof), (ii) states that such Derivative Obligation has been entered into in the course of the ordinary business practice of the Borrower and not for speculative purposes,
(iii) specifies, as of the date such Derivative Obligation is entered into (and after giving effect to its designation as a First Secured Derivative Obligation or Second Secured Derivative Obligation hereunder, as the case may be), the aggregate
Mark-to-Market Value of all Secured Derivative Obligations then currently designated as “First Secured Derivative Obligations” pursuant to this Section 20, and (iv) specifies (subject to the requirements of clause (c) below) whether such
Derivative Obligation will be designated as a First Secured Derivative Obligation or a Second Secured Derivative Obligation hereunder. 
  
 (b)    Notwithstanding anything to the contrary herein, no Derivative Obligation shall be designated as a “Secured Derivative
Obligation” hereunder unless (and the Borrower shall certify in the relevant Additional Secured Obligation Certificate that): (i) at or prior to the time the relevant Derivative Contract was executed, the Borrower and the Lender or Lender
Affiliate party thereto expressly agreed in writing that such Derivative Obligation would constitute a “Secured Derivative Obligation” entitled to the benefits of the Security Documents and (ii) the Lender or Lender Affiliate party thereto
shall have delivered a notice to the Collateral Agent (or, in the case of a Lender Affiliate, an instrument in form and substance satisfactory to the Collateral Agent) to the effect set forth in subclause (i) of this clause (b), and acknowledging
and agreeing to be bound by the terms of this Agreement with respect to such Derivative Obligation. 
  
 (c)    Notwithstanding anything to the contrary herein, no Secured Derivative Obligation shall be designated as a First Secured
Derivative Obligation hereunder unless (and the Borrower shall certify in the relevant Additional Secured Obligation Certificate that): (i) as of the date such Derivative Obligation is entered into (and after giving effect to its designation as a
First Secured Derivative Obligation), the aggregate Mark-to-Market Value of all Secured Derivative Obligations then currently designated as First Secured Derivative Obligations shall not exceed $75,000,000, and (ii) at or prior to the time the
relevant Derivative Contract was executed, the Borrower and the Lender or Lender Affiliate party thereto expressly agreed in writing that such Derivative Obligation would be designated as a First Secured Derivative Obligation entitled to the
benefits of the Security Documents. 
  

 18 

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

					
	 	 	 UNITED STATES STEEL CORPORATION

		
	 By:    
	 	   /s/ Larry. T. Brockway

	 	 	 Name:
	 	 Larry T. Brockway

	 	 	 Title:
	 	 Vice President & Treasurer

  

 19 

					
	 	 	 JPMORGAN CHASE BANK,
as Collateral Agent

		
	 By:    
	 	   /s/ James H. Ramage

	 	 	 Name:
	 	 James H. Ramage

	 	 	 Title:
	 	 Managing Director

  

 20 

 EXHIBIT A 
 to Security Agreement 
  
 PERFECTION CERTIFICATE 
  
 The undersigned is a
duly authorized officer of United States Steel Corporation (the “Lien Grantor”). With reference to the Amended and Restated Security Agreement dated as of May 20, 2003 and amended and restated as of October 22, 2004 between the Lien
Grantor and JPMorgan Chase Bank, as Collateral Agent (terms defined therein being used herein as therein defined), the undersigned certifies to the Collateral Agent and each other Secured Party as follows: 
  

	A.	Information Required for Filings and Searches for Prior Filings. 

  
 1.    Jurisdiction of Organization.  The Lien Grantor is a corporation organized under the laws of Delaware.

  
 2.    Name.  The exact
name of the Lien Grantor as it appears in its certificate of incorporation is as follows: United States Steel Corporation 
  
 3.    Prior Names.  (a) Set forth below is each other corporate (or other organizational) name that the Lien Grantor
has had since its organization, together with the date of the relevant change: 
  
 (b)    Except as set forth below, the Lien Grantor has not changed its structure as a corporation.1 
  
 4.    Filing Office.  In order to perfect the Transaction Liens granted by the Lien Grantor, a financing statement on Form UCC-1, with the collateral described as set forth on Schedule I hereto, should
be on file in the office of                  in
                .2

  

	B.	Additional Information Required for Searches for Prior Filings under old Article 9. 

  
 1.    Current Locations.  (a) The chief executive office of the Lien Grantor is located
at the following address: 
  

					
	 Mailing Address

	  	County                            

	  	State                            

  
 The Lien Grantor
[does] [does not] have a place of business in another county of the State listed above. 
  
 (b)    The following are all locations not identified above or in paragraph (c) below where the Lien Grantor maintains
any Inventory: 
  

					
	 Mailing Address

	  	County                            

	  	State                            

  
 (c)    The following are the names and addresses of all Persons (other than the Lien Grantor) that have possession of any of the Lien Grantor’s Inventory: 
  

					
	 Mailing Address

	  	County                            

	  	State                            

	 	  	 	  	 

  

 1Changes in corporate
structure would include mergers and consolidations, as well as any change in the Lien Grantor’s form of organization. If any such change has occurred, include in Schedule II the information required by Part A of this certificate as to each
constituent party to a merger or consolidation and any other predecessor organization. 
  
 2Insert Lien Grantor’s “location” determined as provided in UCC
Section 9-307. 

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

	
	
	  

	 Name:

	 Title:

  

 A-2 

 Schedule I 
 to Perfection Certificate 
  
 DESCRIPTION OF COLLATERAL 
  
 All Inventory, Receivables,
Contracts, Blocked Accounts and the Cash Collateral Account and all books and records (including customer lists, credit files, computer programs, printouts and other computer material and records) pertaining to the foregoing, in each case whether
now owned or hereafter acquired and wherever located, and all proceeds thereof, but excluding all Transferred Receivables and Related Transferred Rights (as each such term is defined on Exhibit A attached hereto).* 
  
 *Form of Exhibit A to UCC-1 Financing Statements is attached hereto. 
  

     -1 

 Exhibit A to UCC-1 Financing Statement 
  

			
	 Debtor:
	  	Secured Party:
	 United States Steel Corporation
	  	 JPMorgan Chase Bank, as

	 600 Grant Street
	  	 Collateral Agent

	 Pittsburgh, PA 15219
	  	 P.O. Box 2558 – Lien Perfection Unit

	 	  	 Houston, TX 77252

  
 Capitalized terms
used in the description of collateral set forth on the face of the UCC-1 Financing Statement to which this Exhibit A pertains shall have the following meanings: 
  
 “Accounts” has the meaning specified in Section 9-102 of the UCC. 
  
 “Blocked Accounts” means any lockbox, deposit, concentration
or similar account of United States Steel which is or becomes subject to a “Blocked Account Agreement” pursuant to the Security Agreement. 
  
 “Cash Collateral Account” means an account in the name and under the exclusive control of the Collateral Agent, into which all amounts
owned by United States Steel that are required to be deposited pursuant to the Credit Agreement and related documents are deposited from time to time. 
  
 “Chattel Paper” has the meaning specified in Section 9-102 of the UCC. 
  
 “Contracts” means all contracts for the sale, lease, exchange or other disposition of Inventory, whether or
not performed and whether or not subject to termination upon a contingency or at the option of any party thereto. 
  
 “Credit Agreement” means the Credit Agreement dated as of May 20, 2003 among United States Steel Corporation, the Lenders party thereto,
the LC Issuing Banks party thereto, JPMorgan Chase Bank, as Administrative Agent, Collateral Agent, Co-Syndication Agent and Swingline Lender, and General Electric Capital Corporation, as Co-Collateral Agent and Co-Syndication Agent. 
  
 “Eligible Transferee” means (a) a special-purpose company
created and used solely for purposes of effecting a Receivables Financing, whether or not a subsidiary of United States Steel, or (b) any other person which is not a subsidiary of United States Steel. 
  
 “General Intangibles” has the meaning specified in Section
9-102 of the UCC. 
  
 “Instrument” has the
meaning specified in Section 9-102 of the UCC. 
  
 “Inventory” has the meaning specified in Section 9-102 of the UCC. 
  
 “Receivables” means, with respect to the Debtor, all Accounts owned by it and all other rights, titles or interests which, in accordance with generally accepted accounting principles in the United
States of America, would be included in receivables on its balance sheet (including any such Accounts and/or rights, titles or interests that might be characterized as Chattel Paper, Instruments or General Intangibles under the UCC), in each case
arising from the sale, lease, exchange or other disposition of Inventory, and all of the Debtor’s rights to any goods, services or other property related to any of the foregoing (including returned or repossessed goods and unpaid seller’s
rights of rescission, replevin, reclamation and rights to stoppage in transit), and all collateral security and supporting obligations of any kind given by any person with respect to any of the foregoing. 
  
 “Receivables Financing” means any receivables securitization
program or other type of accounts receivable financing transaction by United States Steel or any of its subsidiaries (including, without limitation, the receivables financing transaction effected pursuant to (x) the Purchase and Sale Agreement dated
as of November 28, 2001 among U.S. Steel Receivables LLC, the originators named therein and United States Steel, 

  

 A-1 

 
as initial servicer, and (y) the Amended and Restated Receivables Purchase Agreement dated as of November 28, 2001 among U.S. Steel Receivables LLC, as
seller, United States Steel, as initial servicer, The Bank of Nova Scotia, as collateral agent, JPMorgan Chase Bank, as a committed purchaser and a funding agent, and the various other persons from time to time party thereto (as amended from time to
time, the “Initial Receivables Financing”)). 
  
 “Related Transferred Rights” means (a) rights to payment and collections in respect of Transferred Receivables, (b) security interests or liens and property subject thereto purporting to
secure or guarantee payment of Transferred Receivables, (c) guarantees, letters of credit, acceptances, insurance and other arrangements from time to time supporting or securing payment of Transferred Receivables, (d) all invoices, documents, books,
records and other information with respect to Transferred Receivables or the obligors thereon, (e) with respect to any Transferred Receivables, the transferee’s interest in the product (including returned product), the sale of which by such
transferee gave rise to such Transferred Receivables and (f) all proceeds of the items described in foregoing clauses (a) through (e). 
  
 “Security Agreement” means the Security Agreement dated as of May 20, 2003 among United States Steel and the Collateral Agent.

  
 “Transferred Receivables” means any
Receivables that have been sold, contributed or otherwise transferred by the Debtor to an Eligible Transferee in connection with a Receivables Financing that is not prohibited under the Credit Agreement (including, without limitation, the Initial
Receivables Financing described above). 
  
 “UCC”
means the Uniform Commercial Code as in effect from time to time in the State of New York; provided that, if perfection or the effect of perfection or non-perfection or the priority of any security interest in any collateral is governed by
the Uniform Commercial Code as in effect in a jurisdiction other than New York, “UCC” means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such
perfection, effect of perfection or non-perfection or priority. 
  
 “United States Steel” means United States Steel Corporation, a Delaware corporation, and its successors. 
  

 A-2Form of Note for the Company

 Exhibit 4.01 
  
  
 THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION (“DTC”), TO A NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO CITIGROUP GLOBAL MARKETS
HOLDINGS INC. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN. 
  
  

					
	 No. R-1
	 	 	 	INITIAL PRINCIPAL AMOUNT
	 CUSIP 17307D 30 3
	 	 	 	REPRESENTED $50,000,000
	 	 	 	 	representing 5,000,000 Notes
	 	 	 	 	($10 per Note)

  
  
 CITIGROUP GLOBAL MARKETS HOLDINGS INC. 
 1% Principal-Protected Equity Linked Notes

 Based Upon the S&P 500 Index Due January 28, 2010 
  
 Citigroup Global Markets Holdings Inc., a New York corporation (hereinafter referred to as the “Company”, which
term includes any successor corporation under the Indenture herein referred to), for value received and on condition that this Note is not redeemed by the Company prior to January 28, 2010 (the “Stated Maturity Date”), hereby promises to
pay to CEDE & CO., or its registered assigns, the Maturity Payment (as defined below), on the Stated Maturity Date. This Note will bear semi-annual payments of interest, is not subject to any sinking fund, is not subject to redemption at the
option of the holder thereof prior to the Stated Maturity Date, and is not subject to the defeasance provisions of the Indenture. 
  
 Payment of the Maturity Payment with respect to this Note shall be made upon presentation and surrender of this Note at the corporate trust office of the
Trustee in the Borough of Manhattan, The City and State of New York, in such coin or currency of the United States as at the time of payment is legal tender for payment of public and private debts. 
  
 This Note is one of the series of 5,000,000 1% Principal-Protected Equity
Linked Notes Based Upon the S&P 500 Index (the “Index”) Due 2010 (the “Notes”). 
  

 INTEREST 
  
 The Notes bear interest at the rate of 1% per annum. Interest will be paid in cash semi-annually on each 28th day of each January and July commencing on
January 28, 2005 (each such date, an “Interest Payment Date”). Interest will be payable to the persons in whose names the Notes are registered at the close of business on the fifth Business Day preceding each Interest Payment Date.
Interest will be computed on the basis of a 360-day year of twelve 30-day months. If an Interest Payment Date falls on a day that is not a Business Day, the interest payment to be made on such Interest Payment Date will be made on the next
succeeding Business Day with the same force and effect as if made on such Interest Payment Date, and no additional interest will accrue as a result of such delayed payment. 
  
 “Business Day” means any day that is not a Saturday, a Sunday or a day on which the securities exchanges or
banking institutions or trust companies in the City of New York are authorized or obligated by law or executive order to close. 
  
 PAYMENT AT MATURITY 
  
 On the Stated Maturity Date, holders of the Notes will receive for each Note the Maturity Payment described below. 
  
 DETERMINATION OF THE MATURITY PAYMENT 
  
 The Maturity Payment for each Note equals the sum of the initial principal
amount of $10 per Note plus the Supplemental Return Amount. 
  
 The “Supplemental Return Amount” is calculated as follows: 
  

	 	•	If the Index Return is less than or equal to the Interest Received Percentage, the Supplemental Return Amount will equal zero. 

  

	 	•	If the Index Return is greater than the Interest Received Percentage, the Supplemental Return Amount will equal the product of: 

  

	
	 $10 * (Index Return – Interest Received Percentage)

  
 The
“Index Return” will equal the following fraction: 
  

	
	 Average Ending Value – Starting Value

	 Starting Value

  
 The “Average
Ending Value” will equal the arithmetic average of all monthly ending values. 
  

 2 

 The “Ending Value” will be the closing value of the S&P 500 Index on each Valuation Date
or, if that day is not an Index Business Day, the closing value on the immediately following Index Business Day. 
  
 The “Starting Value” will be 1094.81, the closing value of the S&P 500 Index on October 25, 2004. 
  
 “Valuation Dates” occur on the 25th day of each month, commencing
on November 25, 2004 and ending on the third Index Business Day before the Stated Maturity Date. 
  
 The “Interest Received Percentage” will equal the sum of all the interest payable on the Notes over their term, expressed as a percentage of the
principal amount of the Notes. 
  
 An “Index Business
Day” means a day, as determined by the calculation agent, on which the Index or any successor index is calculated and published and on which securities comprising more than 80% of the value of the Index on such day are capable of being traded
on their relevant exchanges during the one-half hour before the determination of the closing value of the Index. All determinations made by the calculation agent will be at the sole discretion of the calculation agent and will be conclusive for all
purposes and binding on the Company and the beneficial owners of the Notes, absent manifest error. 
  
 A “Market Disruption Event” means, as determined by the calculation agent in its sole discretion, the occurrence or existence of any suspension
of or limitation imposed on trading (by reason of movements in price exceeding limits permitted by any relevant exchange or market or otherwise) of, or the unavailability, through a recognized system of public dissemination of transaction
information, for a period longer than two hours, or during the one-half hour period preceding the close of trading, on the applicable exchange or market, of accurate price, volume or related information in respect of (a) stocks which then comprise
20% or more of the value of the Index or any successor index, (b) any options or futures contracts, or any options on such futures contracts relating to the Index or any successor index, or (c) any options or futures contracts relating to stocks
which then comprise 20% or more of the value of the Index or any successor index on any exchange or market if, in each case, in the determination of the calculation agent, any such suspension, limitation or unavailability is material. For the
purpose of determining whether a Market Disruption Event exists at any time, if trading in a security included in the Index is materially suspended or materially limited at that time, then the relevant percentage contribution of that security to the
value of the Index will be based on a comparison of the portion of the value of the Index attributable to that security relative to the overall value of the Index, in each case immediately before that suspension or limitation. 
  
 If no closing value of the Index is available on any Index Business Day
because of a Market Disruption Event or otherwise, the value of the Index for that Index Business Day, unless deferred by the calculation agent as described below, will be the arithmetic mean, as determined by the calculation agent, of the value of
the Index obtained from as many dealers in equity securities (which may include Citigroup Global Markets Inc. or any of the Company’s other subsidiaries or affiliates), but not exceeding three such dealers, as will make such value available to
the calculation agent. The determination of the value of the Index by the calculation agent in the event 
  

 3 

 of a Market Disruption Event may be deferred by the calculation agent for up to five consecutive Index Business Days on
which a Market Disruption Event is occurring, but not past the Index Business Day prior to the Stated Maturity Date. 
  
 DISCONTINUANCE OF THE S&P 500 INDEX 
  
 If S&P discontinues publication of the Index or if it or another entity publishes a successor or substitute index that the calculation agent
determines, in its sole discretion, to be comparable to the Index, then the Ending Value of any succeeding Valuation Date will be determined by reference to the value of that index, which is referred to as a “successor index.” 

 
 Upon any selection by the calculation agent of a successor index, the
calculation agent will cause notice to be furnished to the Company and the Trustee, who will provide notice of the selection of the successor index to the registered holders of the Notes. 
  
 If S&P discontinues publication of the Index and a successor index is not selected by the calculation agent or is no
longer published on any Valuation Date, the index value to be substituted for the Index for that Valuation Date will be a value computed by the calculation agent for that Valuation Date in accordance with the procedures last used to calculate the
Index prior to any such discontinuance. 
  
 If S&P
discontinues publication of the Index prior to the determination of the Supplemental Return Amount and the calculation agent determines that no successor index is available at that time, then on each Index Business Day until the earlier to occur of
(a) the determination of the Supplemental Return Amount and (b) a determination by the calculation agent that a successor index is available, the calculation agent will determine the value that is to be used in computing the Supplemental Return
Amount as described in the preceding paragraph as if such day were a Valuation Date. The calculation agent will cause notice of each such value to be published not less often than once each month in The Wall Street Journal (or another
newspaper of general circulation). 
  
 If a successor index is
selected or the calculation agent calculates a value as a substitute for the Index as described above, the successor index or value will be substituted for the Index for all purposes, including for purposes of determining whether an Index Business
Day or Market Disruption Event occurs. 
  
 All determinations made
by the calculation agent will be at the sole discretion of the calculation agent and will be conclusive for all purposes and binding on the Company and the beneficial owners of the Notes, absent manifest error. 
  
 ALTERATION OF METHOD OF CALCULATION 
  
 If at any time the method of calculating the Index or a successor index is
changed in any material respect, or if the Index or a successor index is in any other way modified so that the value of the Index or the successor index does not, in the opinion of the calculation agent, fairly 
  

 4 

 represent the value of that index had the changes or modifications not been made, then, from and after that time, the
calculation agent will, at the close of business in New York, New York, make those adjustments as, in the good faith judgment of the calculation agent, may be necessary in order to arrive at a calculation of a value of a stock index comparable to
the Index or the successor index as if the changes or modifications had not been made, and calculate the closing value with reference to the Index or the successor index. Accordingly, if the method of calculating the Index or the successor index is
modified so that the value of the Index or the successor index is a fraction or a multiple of what it would have been if it had not been modified (e.g., due to a split in the Index), then the calculation agent will adjust that index in order
to arrive at a value of the index as if it had not been modified (e.g., as if the split had not occurred). 
  
 GENERAL 
  
 This Note is one of a duly authorized issue of debt securities of the Company (the “Debt Securities”), issued and to be issued in one or more series under a Senior Debt Indenture, dated as of October 27,
1993, as supplemented by a First Supplemental Indenture, dated as of November 28, 1997, a Second Supplemental Indenture, dated as of July 1, 1999, and as further supplemented from time to time (the “Indenture”), between the Company and The
Bank of New York, as Trustee (the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the holders of the Notes, and the terms upon which the Notes are, and are to be, authenticated and delivered. 
  
 If an Event of Default with respect to the Notes shall have occurred and be continuing, the principal of the Notes may be declared due and payable in the
manner and with the effect provided in the Indenture. In such case, the amount declared due and payable upon any acceleration of the Notes will be determined by the calculation agent and will equal, for each Note, the maturity payment, calculated as
though the maturity of the Notes were the date of early repayment. If a Bankruptcy proceeding is commenced in respect of Citigroup Global Markets Holdings, the beneficial owner of a Note will not be permitted to make a claim for unmatured interest
and therefore, under Section 502(b)(2) of Title 11 of the United States Code, the claim of the beneficial owner of a Note will be capped at the payment at maturity calculated as though the maturity date of the Notes were the date of the commencement
of the proceeding, plus an additional amount of interest accrued on the principal amount of the Notes at 1% per annum up to the date of the commencement of the proceeding. 
  
 In case of default in payment at maturity of the Notes, the Notes will bear interest, payable upon demand of the beneficial
owners of the Notes in accordance with the terms of the Notes, from and after the maturity date through the date when payment of the unpaid amount has been made or duly provided for, at the rate of 4.5% per annum on the unpaid amount due.

  
 The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the holders of the Debt Securities of each series to be affected under the Indenture at any time by the Company and a majority in
aggregate principal amount of the Debt Securities at the time Outstanding of each series affected thereby. The Indenture also contains provisions permitting the holders of specified 
  

 5 

 percentages in aggregate principal amount of the Debt Securities of any series at the time Outstanding, on behalf of the
holders of all Debt Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the holder of this Note
shall be conclusive and binding upon such holder and upon all future holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Note. 
  
 The holder of this Note may not enforce
such holder’s rights pursuant to the Indenture or the Notes except as provided in the Indenture. No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company to pay
the Maturity Payment with respect to this Note, and to pay any interest on any overdue amount thereof at the time, place and rate, and in the coin or currency, herein prescribed. 
  
 All terms used in this Note which are defined in the Indenture but not in this Note shall have the meanings assigned to them
in the Indenture. 
  
 Unless the certificate of authentication
hereon has been executed by the Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purposes. 
  

 6 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

  
  

			
	 CITIGROUP GLOBAL MARKETS HOLDINGS INC.

		
	 By:
	 	    /s/    SCOTT FREIDENRICH
	 	 	

	 	 	Name: Scott Freidenrich
	 	 	Title:   Executive Vice President and Treasurer

  

			
	 Corporate Seal

	 Attest:

		
	 By:
	 	    /s/    DOUGLAS C. TURNBULL
	 	 	

	 	 	Name: Douglas C. Turnbull
	 	 	Title:   Assistant Secretary

  

			
	 Dated: October 28, 2004

	
	 CERTIFICATE OF AUTHENTICATION

	 	 	This is one of the Notes referred to in
	 	 	the within-mentioned Indenture.
	
	 The Bank of New York,

	 as Trustee

		
	 By:
	 	    /s/    GEOVANNI BARRIS
	 	 	

	 	 	Authorized Signatory

  

 7

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