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PORT OPERATING SERVICE AGREEMENT

By means of this private legal instrument, on the one hand, in its capacity as service recipient, 

NACIONAL MINÉRIOS S/A, a joint stock corporation organized and existing under Brazilian law, with its head office located in the City of Congonhas, State of Minas Gerais, Federal Republic of Brazil, at the address known as
“Logradouro Casa de Pedra”, s/n (unnumbered), Part, enrolled with the General Registry of Corporate Taxpayers of the Brazilian Ministry of Finance (“CNPJ/MF”) under No. 08.446.702/0001 -05 (and its successor, hereinafter
referred to as “NAMISA”), 

and, on the other hand, in its capacity as service provider, 

COMPANHIA SIDERÚRGICA NACIONAL, a joint stock corporation organized and existing under Brazilian law, with its head office located in the City of Rio de Janeiro, State of Rio de Janeiro, at Rua São José No. 20, Suite
1602, Part, enrolled with the CNPJ/MF under No. 33.042.730/0001 -04 (hereinafter referred to as “CSN”), 

(NAMISA and CSN are individually identified as “Party” and jointly as “Parties”). 

As intervening parties:

BIG JUMP ENERGY PARTICIPAÇÕES S.A., a corporation organized and existing under Brazilian law, with its head offices located in the City of São Paulo, State of São Paulo, at Rua da Consolação, 247,
3rd Floor, Room 85A, enrolled with the CNPJ/MF under No. 09.431.882/0001 -14, herein represented in accordance with its by-laws (and its successors, hereinafter referred to as the “Brazilian SPC”); 

BRAZIL JAPAN IRON ORE CORPORATION, a company duly organized and existing under the laws of Japan, with its head office located at 5-1, Kita-Aoyama 2-chome, Minato-ku, Tokyo 107-8077, Japan, herein represented in accordance with its by-laws
(hereinafter referred to as the “Japanese SPC”); 

POSCO, a company duly incorporated and validly existing under the laws of Korea, with head offices at 892 Daechi 4-dong Kangnam-gu, Seoul, 135-777, Korea, herein represented in accordance with its by-laws (“Posco”); 

(the Brazilian SPC, the Japanese SPC and Posco are collectively hereinafter referred to as the “Intervening Parties”); 

RECITALS

WHEREAS:

(A) among its other activities, CSN has exclusive rights to manage and operate the port installations that are part of the terminal for coal and other solid bulk cargoes, located in the Port of Itaguaí, in the City of Itaguaí,
State of Rio de Janeiro (hereinafter referred to as the “Terminal” or “TECAR”), pursuant to the Lease Agreement nr. C-DEP JUR 054/97 (bound to the Public Bid Offer No. CI-003/96) (the “Lease
Agreement”); 

(B) NAMISA produces and sells iron ore, with most of its products being shipped to the international market;

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(C) NAMISA is interested in contracting port operating services provided by CSN at the Terminal and CSN is interested in performing such services for NAMISA; 

(D) the Parties simultaneously execute (i) a Low Silica ROM Iron Ore Supply Contract; (ii) an Iron Ore Supply Contract and Other Covenants (Tailing Dam Rejects); (iii) a High Silica ROM Iron Ore Supply Contract; and (iv) a Support
Agreement (solely in relation to Clause 2 thereof), (all such agreements, including this Port Operating Service Agreement, but excluding the Iron Ore Supply Contract and Other Covenants (Tailing Dam Rejects), the “Related
Contracts”); and 

(E) the performance of each Related Contract will be considered part of the performance of a more comprehensive transaction between the Parties, which encompasses the supply of iron ore, railway transport of iron ore, port operating services
and other transactions, as reflected in such Related Contracts and other arrangements and documents executed between the Parties. 

The Parties hereby resolve to execute this Port Operating Services Agreement (the “Agreement”), which shall be governed by the following clauses and conditions: 

CLAUSE ONE – SCOPE

1.1. The scope of this Agreement is the performance by CSN of port operating services for NAMISA at the Terminal, consisting of receiving, handling, storing and shipping iron ore owned by NAMISA (hereinafter referred to as the “Iron
Ore”) with such services consisting of all operations from unloading of the Iron Ore from railroad cars in the convoys provided by NAMISA for transportation of the Iron Ore to the Terminal up to the effective shipment of the Iron Ore in the
vessels named by NAMISA and accepted by CSN (hereinafter referred to as the “Services”), with due regard to the remaining terms and conditions set out in this Agreement. 

1.1.1 The Parties agree that vessels to be used by NAMISA shall be [•]1 and [•] vessels with capacity for hauling between [•] and [•] metric tons, provided that the Parties may agree, upon NAMISA’s
request, upon the use of (i) [•] vessels or other vessels with capacities lower than [•] vessels, depending on the availability of operational capacity of the Terminal or (ii) vessels larger than [•] vessels, in case the Terminal is
expanded and becomes able to operate with such larger vessels. CSN shall not withhold any such authorizations if the Terminal capacity is not jeopardized by the use of vessels smaller than [•] vessels or the Terminal is able to operate vessels
larger than [•] vessels. 

CLAUSE TWO – TERM FOR PERFORMANCE OF THE SERVICES

2.1. Term for Performance of the Services. The Services shall be performed for a period of 34 (thirty-four) Mining Years, beginning on the signing date of this Agreement. For the purposes of this Agreement, “Mining
Year” shall mean the period of 12 (twelve) months beginning on April 1st of a calendar year and ending on March 31st of the subsequent calendar year. 

2.1.1. Extension. In case there are any Carry-Over Services, as defined below, to be performed after the end of the 34th Mining Year, this Agreement shall be automatically extended for as much time as necessary for the provision of such outstanding Carry-Over Services, subject to all terms and conditions hereof, provided that such automatic renewal shall be subject to the expiration of the Lease Agreement in 2047.

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1 Text marked as [•] denotes CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.
time as necessary for the provision of such outstanding Carry-Over Services, subject to all terms and conditions hereof, provided that such automatic renewal shall be subject to the expiration of the Lease Agreement in [•]. 

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CLAUSE THREE – SPECIFIC OBLIGATIONS OF CSN 

3.1. Without prejudice to the other obligations attributed to CSN under this Agreement, CSN undertakes to: 

(a) guarantee a maximum length of time of [•] hours as the layover time at the Terminal for its railroad convoys consisting of up to [•] freight cars when such cars are unloaded by force of gravity;

(b) guarantee a maximum length of time of [•] hours and [•] minutes as the layover time at the Terminal for its railroad convoys consisting of up to [•] freight cars, when such cars are unload by means of car dumpers; 

(c) accept the vessels named by NAMISA (chartered by NAMISA or by the NAMISA’s customers), provided that they are strictly and fully in conformity (i) with the norms, procedures and regulations established by the applicable port,
maritime and customs authorities and (ii) with the technical and operational conditions of the Terminal contained in Attachment I hereto, without prejudice to the other provisions set out herein; 

(d) when requested, make available to NAMISA information regarding the technical and operational conditions of the Terminal, including but not limited to (i) applicable norms, procedures and regulations, (ii) technical and operational
conditions of the Terminal (which are contained in Attachment I hereto) and (iii) all technical restrictions relating to the pier, the vessels and maneuverability in access channels, anchoring areas and maneuvering basins; 

(e) make available to NAMISA the list of vessels that cannot be accepted at the Terminal, in view of the Terminal’s technical and operational conditions, which list shall not be exhaustive and may be periodically updated by CSN,
except, however, that in exceptional circumstances and provided that a prior request is submitted by NAMISA to CSN, CSN may, at its exclusive discretion and in writing, accept vessels included on the said list at Terminal, though, to such end it
shall impose the operational conditions that it deems appropriate by force of the criteria it adopts to manage and operate the Terminal; 

(f) guarantee, in relation to the vessels named by NAMISA and accepted by CSN, the fulfillment of a loading plank of [•] metric tons per day and a turn time (time granted for vessel maneuvers that begins immediately after acceptance of
the Notice of Readiness - NOR) of [•]: 

(i) the Parties acknowledge that the time spent or related to events of any kind attributable (A) to the intrinsic characteristics of the Iron Ore, (B) to special care required with respect to the Iron Ore not declared by NAMISA to CSN at
least [•] hours prior to shipment, (C) to any hidden and particular defect of the Iron Ore, (D) to special characteristics of the vessel named by NAMISA, including with respect to the capacity of its ballast pumps, (E) to the absence of the
Iron Ore, hence preventing or hindering its shipment, (F) to operations on board (pumping out ballast, opening and closing of hold hatches, calculation for revision of cargo plans), and (G) to adverse natural conditions at the Terminal, such as
those related to climate, temperature, tides, ocean currents, winds, etc. that, in the judgment of CSN, NAMISA, the vessel’s masters and other parties involved, make port operations impossible and/or place port operations at risk, shall be
disregarded for purposes of compliance with the loading rate, per vessel, set out above; and 

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(ii) the conditions of shipment agreed to between NAMISA and the vessel it has named are to be submitted beforehand to CSN for its approval when of the scheduling of the port operation, as described in Clause 4.1 below; 

(iii) CSN shall pay to NAMISA demurrage for all time lost in excess of allowed laytime at the Terminal, at the following rate, per day (24 hours) or pro rata for part of a day: 

1. for the first [•] WMT of Iron Ore, the demurrage rate shall be US$ [•] per WMT; 

2. for the quantity between [•] to [•]WMT of Iron Ore, the demurrage rate shall be US$ [•] per WMT; and 

3. for the quantity above [•] WMT of Iron Ore, the demurrage rate shall be US$ [•] per WMT; 

(iv) the settlement of dispatch or demurrage claims between CSN and NAMISA shall be made within 30 (thirty) days from the date of receipt of documented claim for either Party as the case may be;

(g) adopt such procedures as are required to ensure that port operations are safe and adequate, and satisfy the requirements of regularity, continuity, efficiency, being up to date, courtesy and modesty prescribed in the Lease Agreement; 

(h) in relation to vessels named by NAMISA and accepted by CSN, carry out the master plans submitted by the vessel’s captain, provided that such plans are in full harmony with CSN’s operating procedures; 

(i) in relation to vessels named by NAMISA and accepted by CSN, provide a mooring berth, equipments, materials and manpower - specialized or non-specialized - in order to perform the Services; 

(j) prepare documents that are under CSN’s responsibility as appropriate for shipment of cargo, such as the Statement of Facts, Cargo Receipt and such other documents as are required in accordance with the iron ore sale contracts between
NAMISA and its customers; 

(k) make an area available – sufficiently in advance according to the schedule approved by CSN – that is sufficient and appropriate for receiving the batches of Iron Ore to be shipped, according to the schedule for the railroad
convoys agreed to beforehand among NAMISA, CSN and the railroad concessionaire; 

(l) permit access for NAMISA’s representatives, according to CSN’s service and security norms and determinations of the port and customs authorities, to inspect the following Terminal facilities: (i) storage yard, (ii) sampling
tower and (iii) laboratory; 

(m) allow access aboard of the vessels named by NAMISA and accepted by CSN, according to the CSN service and safety rules and the determinations of the port and customs authorities, to NAMISA’s representatives and/or the third party
contracted by NAMISA for accompanying of measurement of cargo capacity; 

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(n) carry out the initial and final measurement of cargo capacity of the vessels named by NAMISA and accepted by CSN, allowing such measurement work to be accompanied by NAMISA or NAMISA’s representatives, with due regard to the provisions contained in item (m) above; 

(o) take representative samples of the Iron Ore shipped in the vessels named by NAMISA and accepted by CSN, and conduct all analyses, including chemical, grain size and humidity tests of such samples in accordance with Attachment II
hereto. The results of such analyses are to be made available to NAMISA by CSN within a period of no more than 5 (five) working days from the date of issue of the respective Bill of Lading or Sea Waybill; 

(p) comply with all obligations of labor, social, tax and/or Social Security nature with respect to its employees and other professional involved in the performance of the Services, paying over all applicable taxes, contributions and Social
Security contributions, and assuming responsibilities derived therefrom; 

(q) reimburse NAMISA for any and all amount that NAMISA may have to spend as a result of CSN’s obligations deriving from the working relationship between CSN and its employees, shareholders, executive officers, representatives or other
professionals connected to the performance of the Services; 

(r) fully comply with the norms and regulations and working instructions concerning On-the-Job Safety and Health Care; 

(s) insofar as possible, facilitate the work of parties inspecting and accompanying the Services and, whenever this is reasonably requested by NAMISA, provide NAMISA with copies of documents that are directly related to performance of the
Services; 

(t) obtain and keep up to date all licenses required for full performance of this Agreement and the Services; and 

(u) assign an area of the Terminal measuring approximately [•] to NAMISA under a free lease (comodato) agreement to be executed on the date hereof by the Parties, for the effective period of this Agreement, which area shall be
used by NAMISA to perform its administrative activities related to the port shipment of the Iron Ore. 

CLAUSE FOUR – SPECIFIC OBLIGATIONS OF NAMISA 

4.1. Without prejudice to the other obligations attributed to NAMISA under this Agreement, NAMISA undertakes to: 

(a) submit to CSN in writing as soon as possible in the previous Mining Year but by no later than [•]of the previous Mining Year for each Mining Year subsequent to Mining Year of 2008 (as the schedule for the shipments to be made in
Mining Year of 2008 has already been agreed to by the Parties), a preliminary version of its shipment schedule for such Mining Year, indicating (A) the monthly quantities of each type of Iron Ore to be shipped, and (B) the quantities of each
shipment of Iron Ore to be carried out, with due regard to Clause 7.1 below, provided that: 

(i) CSN shall issue its opinion on the preliminary version of the schedule submitted by NAMISA within a period of no more than [•] days counting from the date of its receipt; 

(ii) should CSN not approve the preliminary version of the schedule submitted to it, for any
reason, it shall, at the same time, submit appropriate suggestions to NAMISA to make such schedule eligible for approval; and 

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(iii) if NAMISA does not agree with such suggestions, the Parties shall establish in good faith an alternative schedule mutually satisfactory within a period of no more than [•] days prior to the beginning of each Mining Year. Such
alternative schedule shall then be approved in writing by CSN; 

(b) submit to CSN in writing, as soon as possible but by no later than [•] days prior to the beginning of each Quarter of a Mining Year, a new version of its schedule of shipments for such Quarter, prepared with basis on the preliminary
version mentioned in item (a) above, indicating (i) the type of Iron Ore and the quantities of each shipment to be carried out in such Quarter, with due regard to Clause 7.1 below, and (ii) the lay days scheduled for each shipment. This schedule
shall be approved in advance by CSN. To such end, CSN will have a period of [•] days counting from the date on which it receives such schedule to approve or reject it in writing, provided that: 

(i) in case, for any reason, CSN does not approve the preliminary version of the schedule submitted to it, it shall, at the same time, submit appropriate suggestions to NAMISA to make such schedule eligible for approval; and 

(ii) in case NAMISA does not agree with such suggestions, the Parties shall establish in good faith an alternative schedule mutually satisfactory within a period of no more than [•] days antes prior to the beginning of each Quarter. Such
alternative schedule shall then be approved in writing by CSN;

(c) faithfully observe, in chartering vessels on its own account or on behalf of its customers: (i) all applicable norms, procedures and regulations, including international ones, (ii) the operational conditions of the Terminal contained in
Attachment I, with all the technical information and restrictions relating to the Terminal, vessels and maneuverability in access channels, anchoring areas and maneuvering basins, including but not limited to (A) berth operational characteristics,
and (B) vessel restrictions; 

(d) ensure that vessels chartered on its own account, as well as on behalf of its customers (i) are covered by Protection and Indemnity (P&I) insurance taken out from a P&I Group that is a member of the International Group of P&I
Clubs, (ii) comply with the International Safety Management (ISM) Code and the International Ship and Port Security (ISPS) Code, (iii) carry on board copies of the Safety Management Certificate (SMC) or the Document of ISM Compliance (DOC) and the
International Ship's Security Certificate (ISSO), and (iv) have the required navigability and are appropriate for hauling the Iron Ore, in conformity with the Statement of Compliance (Part B) of Attachment I and on the Rightship. 

(e) provide the following data to the CSN Management of Scheduling and Port Operations at the Terminal, either via fax or e-mail message sent at least [•] days prior to the date of each lay day, in order for CSN to accept the relevant
vessel: 

(i) the name, year of construction and dimensions of the vessel and the estimated quantity and type of the Iron Ore to be shipped in it. CSN shall have [•] working day counting from the date it receives such information to grant written
approval or rejection of the vessel named by NAMISA, with due regard to the schedule established in item (b) above. Vessels that are [•] years old or older shall not be accepted by CSN, provided that: 

(A) in the event any vessel accepted by CSN arrives at the Terminal outside of the
respective lay days, such vessel shall be subject to new acceptance by CSN. In the event CSN decides to accept such vessel, such acceptance shall be considered as having been given at the commencement of loading; and 

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(B) NAMISA may replace any vessel named by it and accepted by CSN with another similar vessel, with the same lay days of the replaced vessel, provided that it informs the CSN Management of Scheduling and Port Operations at the Terminal at
least 10 (ten) days prior to the date of commencement of the respective lay days, and observes – in relation to the replaced vessel – the provisions of this Agreement for acceptance of vessels at the Terminal; 

(ii) the total length of the vessel, the size of the entries of the holds, the dimensions/number of cargo compartments and the name of the agent responsible for the cargo and the vessel owner’s representative; 

(iii) the lay days, the interval of which may not exceed [•] days; and 

(iv) the classification of the vessel by a classification society recognized by the IACS (International Association of Classification Societies), which classification should be at least highest Lloyds (+ 100 A1), and the certification of the
ship and of the cargo pursuant to the regulations of the IMO (International Maritime Organization); 

(f) inform the CSN Management of Scheduling and Port Operations, either via fax or e-mail message, of the estimated times of arrival (ETA) at the Terminal [•] prior to effective arrival of the vessel, or, by request of CSN at any time,
notifying CSN immediately and formally, with respect to any change in such estimated times; 

(g) inform the CSN Management of Scheduling and Port Operations, either via fax or e-mail message, of the Master Plan for loading the Iron Ore for each vessel charged by NAMISA or by its customers and accepted by CSN, with advance notice of
at least [•] days prior to the arrival of such vessel at the Terminal, including but not limited to: 

(i) the arrival draft and the air draft upon mooring; 

(ii) the quantity of ballast upon arrival and, if such is the case, how such ballast is distributed; 

(iii) the estimated time for pumping out ballast after mooring; 

(iv) the loading sequence; and 

(v) information regarding the need for issuance of a gas free certificate or declaration; 

(h)  NAMISA shall pay to CSN dispatch for the working time saved at the Terminal against the allowed laytime, provided that the rate of dispatch shall be half of the rate of demurrage, as specified in Clause 3.1 (f) (iii). 

(i) ensure that the compartments of the vessels named by NAMISA are clean, empty and capable of being loaded with the Iron Ore; 

(j) preferably ship just one type of Iron Ore in each vessel, such that the loading of more than one type of Iron Ore in a single shipment should be authorized by CSN, provided that CSN shall not withhold any such authorization if the
Terminal capacity is not jeopardized by the loading of more than one type of Iron Ore in a single shipment. 

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(k) ensure that the captains and other persons responsible for the vessels named by NAMISA comply with all environmental laws and other rules in effect, including with respect to cleanliness of cargo compartments; NAMISA thus assumes
liability vis-à-vis CSN for any losses CSN suffers in the event this provision is not fully complied with; 

(l) submit to CSN the technical and operational conditions on which the vessel is being chartered (either by NAMISA or by its customer), including (i) conditions for shipment operations, and (ii) data relating to cancelling date; 

(m) assume sole and exclusive liability, with respect to CSN, vessel owners and/or third parties involved in the operations, for legal acts and business transactions resulting from chartering of vessels named by NAMISA and to be carried out
at the Terminal; 

(n) submit to CSN, at least [•] days prior to the date of the first unloading at the Terminal, the schedule for arrival at the Terminal of the railroad convoys containing the Iron Ore to be shipped in each vessel, which schedule is to be
approved in advance by CSN. To such end, CSN shall have [•] working days counting from the date it receives such schedule to approve or reject it, provided that: 

(i) if for any reason CSN does not approve the preliminary version of the schedule submitted to it, at the same time CSN shall submit appropriate suggestions to NAMISA to make such schedule eligible for approval; 

(ii) if NAMISA does not agree with such suggestions, the Parties shall establish in good faith an alternative schedule that is mutually satisfactory within a period of no more than [•] days counting from the date that NAMISA expresses
its disagreement with CSN’s suggestions.  Such alternative schedule shall then be approved in writing by CSN; and 

(iii) under no circumstances whatsoever may NAMISA send railroad convoys for unloading the Iron Ore at the Terminal unless the provisions contained in this item have been complied with; 

(o) turn over the respective railroad waybills to CSN upon the arrival of the Iron Ore at the Terminal; 

(p) make every effort to ensure that the full amount of the Iron Ore to be shipped in the vessels named by NAMISA and accepted by CSN are ready and available at the Terminal at least 1 (one) day prior to the beginning of the scheduled
shipment. In the event the provision above is not complied with by NAMISA, NAMISA shall complete the quantity of Iron Ore scheduled to be shipped on such vessel with the Iron Ore to be sent by NAMISA in railroad convoys during the effective period
for loading of such vessel; and 

(q) obtain and submit to CSN at least [•] hours in advance all authorizations required by the appropriate agencies of the Federal, State or Municipal Public Administration, including but not limited to port, maritime and customs
authorities.  On all operations covered by this Agreement NAMISA shall be responsible with respect to the appropriate bureau of the Brazilian Federal Revenue Service (RFB) for the Term of Shipment and customs clearance of the Iron Ore, including
with respect to payment of any taxes or tariffs that are levied or may be levied on the Iron Ore and the respective port operation. Failure to meet the above terms and conditions shall entail non-mooring of the vessel. In exceptional cases, when
mooring of the vessel relating to each port operation has been permitted already, failure to obtain required authorizations and submission thereof to CSN may entail immediate release of the vessel from
its moorings, in which case NAMISA shall be liable for all the consequence resulting from such a situation, including but not limited to costs relating to operating losses incurred by CSN and inactive occupation of the berth. 

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CLAUSE FIVE – RESPONSIBILITES IN RELATION TO THE IRON ORE 

5.1. CSN shall be liable for losses, damages (excluding indirect and consequential damages), contamination and/or discrepancies (in terms of quantity or quality) related to the Iron Ore at the Terminal if (a) CSN’s responsibility is
proven with respect to such losses, damages, contamination and/or discrepancies and (b) CSN has been notified by NAMISA in this regard as promptly as possible, but no later than within [•] hours from the date such loss, damage, contamination
and/or discrepancy is detected by NAMISA.  

5.1.1. For the purposes set out in Clause 5.1 above, NAMISA undertakes to maintain at the Terminal at its expenses, the person or persons responsible for accompanying all port operations involving the Iron Ore during performance of the
Services. 

5.1.2. CSN shall not be held liable for losses, damages, contamination and/or discrepancies (in quantity or quality) in relation to the Iron Ore (a) that occur or are verified after conclusion of the shipment of such Iron Ore in the vessel
named by NAMISA and accepted by CSN, or (ii) that have not been communicated by NAMISA to CSN, as set forth in Clause 5.1 above. 

5.1.3. In any case, the Parties shall discuss and agree in good faith the proper measures to remediate such losses, damages, contamination and/or discrepancies. 

5.2. In the event any loss, damage or deterioration in the facilities of the Terminal and/or the equipment belonging to CSN occurs during performance of the Services as a result of the quality of the Iron Ore, such as the presence of foreign
bodies or objects, excessive dampness, petrifying and other such situations (except if such loss, damage or deterioration is attributable in whole or in part to CSN), CSN shall calculate the losses and damages incurred and submit a report to NAMISA
in this regard. NAMISA shall have a period of up to [•] working days to challenge in writing the report submitted by CSN, under penalty of the information contained in such report being considered uncontested and NAMISA shall indemnify CSN for
such losses and damages, limited to the amount required for the repair (if possible) or replacement of the facilities of the Terminal and/or the equipment belonging to CSN damaged, destroyed or deteriorated, with the exclusion of any other losses
and damages. On the other hand, if NAMISA contests the report submitted by CSN, the Parties shall negotiate in good faith, in order to find a mutually satisfactory solution to the problem, within a period of no more than [•] working days
counting from the date such rebuttal is received by CSN. All the losses and damages to be reimbursed to CSN in the manner provided in this item are to be paid within a period of no more than [•] days counting from the date on which CSN issues
the corresponding collection document. 

CLAUSE SIX – GENERAL CONDITIONS FOR OPERATION OF THE TERMINAL 

6.1. NAMISA shall adhere to the following general terms and conditions for operation of the Terminal, which shall be applicable to all shipments of Iron Ore under this Agreement: 

(a) Notice of Readiness (“NOR”). A NOR may be issued at any time after the vessel arrival at the Terminal, regardless of the time or day (including issue of a NOR on Saturdays, Sundays and Legal holidays), provided that the
vessel in question is within the agreed-upon lay days on a free pratique basis, released by the port authorities and fully eligible to receive the Iron Ore. 

Otherwise, a NOR shall not be issued or, if already issued, it shall be cancelled. 

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(b) Lay Time. The lay time shall begin 12 (twelve) hours after issuance and acceptance of the NOR, whether or not the vessel is moored, or upon commencement of loading, whichever occurs first. Once the lay time begins, it shall not be
reversible and shall end immediately after termination of the loading. The vessel shall set out as soon as the loading ends and subsequent formalities are concluded. NAMISA shall assure that the vessel or its agents contract skippers and tugboats to
permit prompt mooring and unmooring of the vessel. 

(i) The lay time shall be calculated based on the guaranteed loading rate defined in Clause 3.1 (f) above and on the weight indicated on the Bill of Lading or Sea Waybill. The weight of the Iron Ore shipped on the vessels shall be determined through measurement of the vessel’s capacity according to applicable international practices. Such weight shall be the basis for issuance of the respective Bill of Lading or
Sea Waybill; 

(ii) The time elapsed until the vessel’s captain instructs CSN regarding the best arrangement/distribution of the Iron Ore in the cargo compartments of the vessel (trimming) shall not be computed as lay time; 

(iii) In the event loading has to be interrupted due to insufficient capacity of the pumps used to pump out ballast in relation to the rate for loading the Iron Ore on the vessel, any time lost during loading shall not be computed as lay
time, even if the vessel is already on demurrage; 

(iv) time spent in maneuvering the vessel after mooring, provided that such maneuvering is attributed to NAMISA, the vessel itself or the vessel owner, case in which any costs for such maneuvering shall be covered by NAMISA, shall not be
computed as lay time. However, the time spent in maneuvers attributable to CSN or the Terminal shall be computed as lay time, with CSN covering the costs thereof, if any; 

(v) time spent on opening and closing the hold hatches, ballasting or pumping out ballast and/or any activity related to the vessel shall not be computed as lay time; 

(vi) time spent on final measurement of the vessel’s capacity or any intermediary measurement required by the vessel’s captain shall not be computed as lay time; 

(vii) time lost in case loading has to be interrupted due to Acts of God or Force Majeure, irrespective of whether the vessel is being loaded or is waiting in the anchorage area, shall not be computed as lay time. Any delay attributed to such
events of Force Majeure or Acts of God shall be notified by CSN in writing to the master of the vessel or its agent and shall be stated in the Statement of Facts duly signed by the master of the vessel or his agent and CSN’s representative. If
such events of Force Majeure or Acts of God should occur after commencement of the loading and CSN believes that such events and/or their effects may last for some time, CSN and NAMISA shall establish a mutually satisfactory plan of action; 

(viii) The normal operating hours of the Terminal shall be from 0:00 (zero hours – i.e. midnight) to 24:00 (twenty-four hours – i.e. midnight), including Saturdays, Sundays and Legal holidays.  Any overtime hours incurred by the
crew and officers of the vessels shall not be the responsibility of CSN; 

(ix) A gas free certificate or declaration signed by the vessel’s captain shall be submitted to CSN prior to commencement of loading. If such certificate or declaration is not presented, a gas free certificate or declaration prepared by
a licensed inspector will be
required and shall be submitted to CSN. In this case, the time spent in issuing such certificate or declaration shall not be computed as lay time, even if the vessel is already on demurrage; and 

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(x) Vessels shall be loaded at the Terminal according to their order of arrival, determined based on the date of issuance of the NOR, in the manner provided by this Agreement. 

6.2. Communication between NAMISA and CSN. The Parties undertake to keep close and frequent communication throughout the term of this Agreement aiming at the achievement of the performance of their obligations hereunder, as
follows: 

(i) Monthly Meetings. Each Party shall indicate by written notice to the other Party, no later than 30 (thirty) days of the date of signature of this Agreement, a committee of three or four officers and/or employees in charge of
representing that Party in the management of the day-to-day operations under this Agreement (the “Representation Committee”). The Representation Committee of each Party shall convene on a monthly basis, on a date to be agreed upon by the
Parties through mutual discussion in good faith to discuss and define any issues related to the operations under this Agreement and the Parties’ performance of their obligations hereunder, such as: 

- Planning and operations for the next month; 

- Review of the actual performance of the Parties’ obligations for the immediately preceding month; 

- Reconciliation of Actual vs Budget for the operation of the month; and 

- Discuss and agree in good faith any counter-measures (but in any
event without prejudice to any provision in this Agreement) that shall be taken by each Party, as applicable, for any non-conformity or nonperformance of the Parties’ obligations under this Agreement. 

(ii) Yearly Meetings. The Representation Committee of each Party shall annually convene on a date to be mutually agreed by the Parties in each Mining Year to discuss the operations and performance of the Parties’ obligations under
this Agreement for the preceding Mining Year, as well as issues such as: 

- Planning for the next Mining Year;

- Review of the actual performance of the Parties’ obligations for the previous Mining Year; 

- Reconciliation of Actual vs Budget for
the operation of the Mining Year; and 

- Discuss and agree in good faith any counter-measures (but in any event without prejudice to any provision in this Agreement) that shall be taken by each Party, as applicable, for any non-conformity or
nonperformance of the Parties’ obligations under this Agreement. 

(iii) Third Parties’ Attendance. The Intervening Parties may appoint representatives being entitled to attend the Yearly and Monthly Meetings provided in this Clause at their sole discretion. 

(iv) Day-to-day Communication. Further to the above, the Parties shall keep, through any of the members of the Representation Committee, close daily communication in connection with the operations of this Agreement.

6.3. Access to CSN’s Daily Operations under this Agreement. In addition to Clause 6.2 above, NAMISA and the Brazilian SPC will be entitled to access and supervise CSN’s daily operations under this
Agreement, through a representative indicated by NAMISA, including but not limited to
performance control procedures, such as weighing, sampling and analysis, among others, and CSN will endeavor its best efforts to provide such clarification or information requests which may be submitted by NAMISA as a result thereof. 

CONFIDENTIAL TREATMENT REQUESTED BY COMPANHIA SIDERURGICA NACIONAL

 

CLAUSE SEVEN – QUANTITIES 

7.1. Contractual Quantity and Basic Annual Quantities. Subject to Clause 7.3 below, CSN undertakes to perform the Services in each Mining Year, in relation to the quantity of Iron Ore indicated in the respective column of
Attachment III (with such quantity of Iron Ore being hereinafter referred to as the “Basic Annual Quantity” and the sum of the Basic Annual Quantities as the “Contractual Quantity”), it being hereby agreed
that each one of the shipments to be made during the performance of the Services shall be of at least [•] metric tons on a wet basis, except as provided in Clause 1.1.1 above. 

7.1.1. Notwithstanding Clause 7.1 above, NAMISA may require, at NAMISA’s sole discretion, in each Mining Year, the performance of Services in relation to a quantity of Iron Ore that is lower than the Basic Annual Quantity set forth for
the Mining Year in question. Services in relation to a quantity of Iron Ore higher than the Basic Annual Quantity set for the Mining Year in question may be requested by NAMISA, but is subject to CSN's approval, which shall depend, among others, on
availability of Terminal capacity. The requirement by NAMISA of Services below the Basic Annual shall not be considered as a NAMISA’s Default (as defined in Clause 14.2 below). 

7.1.2 Quantities not Shipped. Whenever in a determined Mining Year NAMISA does not require the performance of the Services (including for reasons attributable to NAMISA itself), in relation to the Basic Annual Quantity scheduled
for such Mining Year, NAMISA will have the right to carry-over the difference between the Basic Annual Quantity and the actual quantity of Services performed by CSN in such Mining Year (the “Carry-Over Services”), for the subsequent
Mining Years, being entitled to recover such Carry-Over Services limited to [•] wet metric tons of Iron Ore per Mining Year and to the term of this Agreement. For the avoidance of doubt, the requirement by NAMISA of Services in relation to any
amount of Iron Ore below the Basic Annual Quantity shall not be considered as a NAMISA’s Default (as defined in Clause 14 below). 

7.2. Monthly Quantity. CSN undertakes to perform the Services in each month of a Mining Year in relation to the quantity of Iron Ore indicated in the respective column of Attachment III hereto (with such quantity of Iron
Ore being hereinafter referred to as the “Monthly Quantity”). For the avoidance of doubt, the requirement by NAMISA of Services in relation to any amount of Iron Ore below the Monthly Quantity shall not be considered as a NAMISA’s
Default (as defined in Clause 14 below). 

7.3. Quantities Exceeding Threshold. If, for any reason whatsoever, NAMISA requires the performance of Services in relation to more than the Monthly Quantity or Basic Annual Quantity, during, respectively, each month of the term
of this Agreement or each Mining Year, CSN and NAMISA shall discuss, in good faith, such additional Services requirement. 

7.4. Chain of Contracts. The Parties acknowledge and agree that this Agreement jointly with the other Related Contracts form a chain of contracts, so that the performance of the obligations arising out of this Agreement
may (i) depend on the due performance of the obligations of the Parties under the other Related Contracts and/or (ii) may affect the performance of the obligations of the Parties under the other Related Contracts.

7.4.1. In case the performance of any obligations under this Agreement is prevented or becomes unfeasible or uneconomical due to the non-performance of the obligations and liabilities of
either Party under any other Related Contracts (the “Affected Contracts”), the Parties shall be subject to the following provisions:

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(i) in case the failure to perform any Related Contract is attributable to either Party hereto, such Party shall also be liable for the non-performance of this Agreement if and to the extent that this Agreement is an Affected Contract; 

(ii) in case of any failure to perform any Related Contract due to a Force Majeure Event, as defined in any such Related Contract, the non-performance hereof shall be deemed to have occurred under a Force Majeure Event if and to the extent
such failure prevents the performance of this Agreement. 

CLAUSE EIGHT – UNIT PRICE 

8.1. Unit Price. The price for the Services performed under this Agreement shall be determined on the basis of the quantities of the Iron Ore in relation to which the Services have been effectively rendered in each month, based
on the following formula (with the price per metric ton on a wet basis resulting from application of the cited formula being hereinafter referred to as the “Unit Price”): 

	PU = P1 + P2

Where: 

PU = means Unit Price for a determined month for performance of the Services; 

P1  = means, as of April 1, 2008, the equivalent in Brazilian currency of US$[•] (“Y”), it being certain that such amount shall be readjusted at the beginning of each Mining Year
based on the same percentage readjustment as iron ore fines of the type known as [•], as produced by the [•] (hereinafter referred to as “[•]”) and aimed for shipment through the
Port of Tubarão to Japan (such ore being hereinafter referred to as “Reference Ore”), as disclosed (by order): 

(i) in the Tex Report, as published by the Tex Report, Ltd. (or successor thereto); 

(ii) if the Tex Report, for any reason, is no longer available or does not any longer disclose the Reference Ore, the Metal Bulletin, published by Metal Bulletin, plc (or successor thereto); or 

(iii) if the Metal Bulletin, for any reason, is no longer available or does not any longer disclose the price of the Reference Ore, then the [•] website or any other [•] publication. 

Notwithstanding the provisions above, if, upon commencement of a Mining Year, the percentage readjustment applicable to the Reference Ore is not available and no other readjustment has been agreed to by the Parties in view of the conditions of the
international iron ore market, the “Y” applicable to the Services to be performed in the Mining Year that is about to begin shall temporarily be the “Y” then in effect until such time as the percentage readjustment applicable to
the Reference Ore is known or determined. As soon as the percentage readjustment applicable to the Reference Ore is known or determined, the new “Y” shall be determined in accordance with the provisions contained in this Clause, with
retroactive effects to the beginning of the Mining Year in question, with any eventual differences (either upwards or downwards) resulting from temporary use of the “Y” then in effect in the formula for
determination of the Unit Price being agreed between the Parties within a period of 30 (thirty) days counting from the date on which the new “Y” has been disclosed and communicated in writing by CSN to NAMISA. 

CONFIDENTIAL TREATMENT REQUESTED BY COMPANHIA SIDERURGICA NACIONAL

 

In the event the Reference Ore should no longer be produced or sold, the Parties shall promptly replace it, for purposes of readjusting “Y”, with such product that succeeds Reference Ore or with such other type of iron ore that is
representative on the international iron ore market that is agreed to by the Parties. 

For purposes of translating the “Y” into Brazilian currency, CSN shall use the average of quotations for sale of the United States Dollar as disclosed by the Brazilian Central Bank (BACEN) by means of transaction PTAX 0800, option 5 (or
such transaction as may replace same on the BACEN System - SISBACEN), in the month prior to that for issuance of the invoice relating to performance of the Services, and shall take “P1" to  2 (two) decimal places after rounding off. “PTAX” means the ask rate which means the Brazilian Reais’s bid and Dollar’s ask rate, expressed as the amount of Brazilian Reais per one Dollar, published by the Brazilian
Central Bank on SISBACEN Data System under transaction code PTAX-800, Option 5, "Venda" by approximately 6:00 p.m., São Paulo time; and 

P2 = means the amount in Brazilian Reais equivalent to US$ [•], which is fixed and non-adjustable for the entire period that this Agreement remains in effect (non-cash amount of the Services price). 

  For purposes of translating the P2 into Brazilian currency, CSN shall use PTAX applicable at the close at the business of the day that is 2 (two) Business Days (as defined in Clause 9.1.1 below) prior to the relevant calculation date, which relevant calculation date for the purposes of the payment of the Advance Payment shall
mean the date on which the such payment effectively occurs. If, no PTAX value is available on such date, PTAX value on the date shall be replaced by the exchange rate freely practiced in the financial market. 

8.2. Taxes. The Parties acknowledge and agree that the amounts attributed to “P1 ” and “P2” in Clause 8.1 above already include the cost related to the Municipal Tax on
Services of Any Kind – ISS to be incurred by CSN, but do not include other taxes of any kind levied on the Services (subject to the tax adjustment provided in Clause 12.2, in case such adjustment occurs), such as the Federal Social Integration
Program – PIS and Social Security Finance – COFINS contributions. The taxes currently imposed on the Services and/or on the rendering of the Services as well as the formula for the addition of those taxes, if applicable, to the Unit Price
are disclosed in Attachment VI hereto. 

8.2.1 . NAMISA shall use, to the extent possible, the tax credits related to the imposition of PIS and COFINS contributions on the rendering of the Services hereunder for each monthly supply of Services to set-off against NAMISA’s
federal tax liabilities related to the Brazilian Corporate Income Taxes or other federal taxes, within 12 (twelve) months counted from such monthly supply of Services.

8.2.2. If during such 12 (twelve) month term NAMISA does not fully set-off the PIS and COFINS credits recognized as a result of the supply of Services hereunder (in the manner described in Clause 8.2.1 above) for each monthly supply of
Services, CSN shall grant NAMISA with non-interest bearing loans, under a current account mechanism, in the amount equivalent to the economic and financial burden equivalent to the full amount of PIS and COFINS credits not set-off, at the end of
each 12 (twelve) month term after the date on which the supply of Services hereunder commences to be subject to the imposition of PIS and COFINS Contributions. 

CONFIDENTIAL TREATMENT REQUESTED BY COMPANHIA SIDERURGICA NACIONAL

 

8.2.3. If and when NAMISA succeeds on fully setting-off the PIS and COFINS credits mentioned in Clause 8.2.2, above against other federal taxes, NAMISA shall repay to CSN the portion of the loan referred to in Clause 8.2.2 equivalent to the
amount of the credits fully set-off. 

8.2.4. Once NAMISA’s right to set-off or recover the PIS and COFINS credits in connection with a given month elapsed after the 5 (five) year period of statute of limitation set forth by the applicable legislation counted from the
recognition of tax credits by NAMISA or its Affiliates related to PIS and COFINS contributions as set forth in Clause 8.2.1, the balance, if any, of the relevant loans made in accordance with Clauses 8.2.2 and 8.2.3 shall be forgiven by CSN. 

8.3. If at any time during the term of this Agreement, as a result of change of Applicable Law , PIS and COFINS Contributions are replaced by new taxes imposed by any federal, state or municipal authority, which are imposed on the supply of
Services hereunder, or if other taxes are created and so imposed, the Parties shall negotiate in good faith on how the tax burden will be shared between them. If there is no agreement between the Parties within the period of 6 (six) months counted
from the change in Applicable Law mentioned in this Clause, the Parties shall share on a 50/50 basis the economic and financial burden equivalent to the amount of said tax burden. 

8.4. Except in the cases of accessory maritime support services (including among them pratique, use of tugboats and support launches to moor vessels), the Unit Price includes all the costs and expenses, both direct and indirect, required to
perform the Services and fulfill the obligations set forth in this Agreement, including but not limited the cost of using equipment, manpower – both specialized and non-specialized, port expenses, Social Security contributions, burdens and
charges resulting from applicable Brazilian labor, social and Social Security legislation, as well as insurance and guarantees required by Applicable Law and/or established in this Agreement. 

CLAUSE NINE – ADVANCE PAYMENT 

9.1. Advance Payment. On the date agreed by the Parties but not later than 90 (ninety) days from the date of execution of this Agreement, NAMISA shall make available to CSN, in advance, on account of the Services to be performed
to NAMISA under this Agreement, the amount in Brazilian Reais equivalent to US$ 2,212,504,830.86 (two billion, two hundred and twelve million, five hundred and four thousand, eight hundred and thirty US dollars and eighty six cents) (hereinafter referred to as the “Advance Payment”), amount which corresponds to the sum of each one of the results of multiplication (a) of
each Monthly Quantity set forth in Attachment III (for each one of the months of each Mining Year) by (b) US$[•], adjusted to present value through the signature date of this Agreement based on a discount rate of [•] per annum.

9.1.1. The conversion of amounts in Dollars into Brazilian Reais, under this Agreement, shall use PTAX applicable at the close of the business of the day that is 2 (two) Business Days (as defined below) prior to the relevant calculation date,
which relevant calculation date for the purpose of the payment of the Advance Payment shall mean the date on which such payment effectively occurs. If no PTAX value is available on such date, PTAX value on the date shall be replaced by the exchange
rate freely practiced in the financial market. “Business Day” means any day (excluding Saturdays and Sundays) on which commercial banks generally are open for the transactions of normal banking business (i) in the City of São
Paulo, Brazil, (ii) in the City of New York, United States of America, (iii) in the City of Tokyo, Japan and (iv) in the City of Seoul, South Korea. 

9.1.2. The Advance Payment shall be made by means of available electronic transfer (TED - “transferência eletrônica disponível”) of funds to CSN’s current account indicated in Attachment IV
hereto (or to such other account as may be notified by CSN to NAMISA under the terms of this Agreement). 

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9.2. Deduction of the Advance Payment upon Performance of the Services. At the end of each month of performance of the Services, CSN shall automatically deduct from the balance of CSN’s debt to NAMISA in relation to the
Advance Payment a fixed and non-adjustable amount corresponding to the portion of the Advance Payment attributable to the Services performed in such month, which amount is equivalent to: 

(a)  P2 (as defined in Clause 8.1 above); 

(b) multiplied by QE (which shall mean the quantity of the Iron Ore effectively shipped by NAMISA in a given month, as determined by the relevant draft surveys). 

9.3. Updating of CSN’s Debt to NAMISA in relation to the Advance Payment. The balance of CSN’s debt to NAMISA in relation to the Advance Payment shall be subject to the levying of interest charges, determined on the
basis of such a rate that, net of taxes, corresponds to [•] per annum, calculated on a monthly pro rata basis. 

9.3.1. The interest charges dealt with in Clause 9.3 above shall be computed through the end of each month (or fraction thereof), as from the date of making the Advance Payment and through the termination or expiration of this Agreement,
based on the balance of CSN’s debt to NAMISA in relation to the Advance Payment on such date, after the deduction provided in Clause 9.2 above. Such interest charges, after being calculated, are to be treated in the following manner: 

(a) [•] of the amount corresponding to the interest charges shall be added to the balance of cited CSN debt at the end of each Mining Year;

(b) [•] of the amount corresponding to the interest charges shall be paid by CSN to NAMISA on the second Working Day of the month subsequent to the one in question, by means of available electronic transfer (TED -
“transferência eletrônica disponível”) of funds to NAMISA’s current account indicated in Attachment IV. For the purposes of this Agreement, the term “Working Day” means any day except
Saturdays, Sundays and holidays on which banks are not authorized to open for business in the City of São Paulo, State of São Paulo; and 

(c) the Parties shall redefine the proportion of interest charges provided in items (a) and (b) above in case of creation or alteration of taxes in order to maintain the financial balance of the date of execution hereof. 

9.4. Every [•] years as from the commencement of the provision of Services under this Agreement, the Parties shall negotiate in good faith an increase of P2, which (i) shall neverresult in a total PU that is higher than the market price for the Services, and (ii) shall not result in any tax adverse effect for both Parties. If the Parties fail to reach an agreement as to such increase, the then current P2 shall not be varied. 

CLAUSE TEN – BILLING AND PAYMENT 

10.1. Issuance of Invoices. On the last day of each month, CSN shall issue an invoice (“NFF”) for the Services performed in such month and submit such NFF to NAMISA within no more than 3 (three) Working Days
from the issue date, with due regard to this Clause and Applicable Law. 

10.1.1. The NFFs shall be issued to NAMISA based on the certificates provided in the manner set forth in Attachment III hereto in relation to each shipment of Iron Ore. Each NFF is to reflect (a) the value of the Services performed, in view of the Unit Price and the quantity of Iron Ore effectively shipped in that month, (b) the portion of the Advance Payment attributable to the
Services performed, calculated in the manner provided by Clause 9.2 above and for the purposes set forth in such Clause, and (c) the balance to pay. 

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10.2. Payment Term of the NFFs. The NFFs are to be paid by NAMISA within a period of no more than 30 (thirty) days counting from the date of NAMISA’s receipt of original NFF, without any financial compensation or monetary
updating being due for such payment term. 

10.2.1. In the event any NFF contains any irregularity, in NAMISA’s opinion, NAMISA shall return it to CSN within a period of no more than 5 (five) Working Days from receipt thereof, with CSN being responsible for remedying such
irregularity and resubmitting it to NAMISA within a period of no more than 5 (five) Working Days. 

10.2.2. In case there is any disagreement between the Parties in relation to any NFF received by NAMISA, such disagreement shall be resolved in a period of no more than 30 (thirty) days counting from the date such disagreement is notified by
any Party to the other, with any adjustments (either upwards or downwards) in the value of the NFF in relation to which there has been a disagreement being reflected in the immediately subsequent NFF or, if there are none, paid within the same
deadline established in accordance with Clause 10.2 above, counting from the date on which such adjustments have been determined and agreed to by the Parties. 

10.2.3. NAMISA shall issue a debit note for such sums as CSN expressly recognizes as being owed to NAMISA under this Agreement, with full offset of such amounts as are due to NAMISA, at the NAMISA’s discretion, against amounts that
NAMISA has to pay to CSN. In the event it is not possible or advisable to carry out the offset set forth in this Clause, the debit note shall be paid by CSN within the same deadline established under Clause 10.2 above counting from the issue day of
such debit note. 

10.3. Manner of Payment. Any payment due by NAMISA to CSN shall be made by means of available electronic transfer (TED - “transferência eletrônica disponível”) of funds to CSN’s current
account indicated in Attachment IV hereto (or to such other account as may be notified by CSN to NAMISA under the terms of this Agreement), with the transfer voucher slip serving as proof of payment and discharge of the respective obligation.
Any payment due by CSN to NAMISA shall also be carried out through the TED system for transferring funds to NAMISA’s current account indicated in Attachment IV (or to such other account as may be notified by NAMISA to CSN under the terms of
this Agreement), with the transfer voucher slip serving as proof of payment and discharge of the respective obligation. 

10.4. Late Payment Charges. In the event any delay should occur with respect to payment of amounts due under this Agreement by one Party to the other, the amount due and not paid shall be monetarily restated based on the
variation in the Reference Rate – TR (or other such index as may replace the latter), plus late payment interest of 1% (one per cent) per month, calculated on a pro rata basis between the due date and the date of effective payment, with
no other type of increase being due. 

CLAUSE ELEVEN – REPRESENTATIONS OF THE PARTIES 

11.1. Representations of CSN. CSN hereby declares to NAMISA, as of the signing date below and during performance of the Services, assuming responsibility for the correctness, truthfulness and completeness of such
representations, that: 

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(a) it is a duly organized and validly established public joint stock corporation under the laws of Brazil and that it has full legal capacity to operate the Terminal and to conduct its business as conducted at present, and is duly qualified
to perform the Services under the terms of this Agreement; 

(b) it has obtained all the corporate or similar authorizations required to sign this Agreement and to comply with the obligations attributed to it hereunder; 

(c) this Agreement has been duly and validly executed and delivered by CSN and constitutes a legal, valid and binding obligation insofar as CSN is concerned and is enforceable against it on the terms hereof;

(d) it is not insolvent, under court protection from creditors, extrajudicial or judicial recovery, and it is neither impeded from paying its obligations and nor has it been declared bankrupt; 

(e) neither the execution and delivery of this Agreement nor the consummation of the transactions and performance of the terms and conditions of this Agreement by CSN will (i) result in a violation or breach of or default under any provision
of the by-laws of CSN; (ii) will result in a violation or breach of or default under any provision of any agreement, indenture or other instrument under which CSN is bound; or (iii) violate any constitution, statute, law, regulation, rule, ruling,
charge, order, writ, injunction, judgment or decree (“Applicable Law”) of or by any federal, national, state, municipal, local or similar government, governmental, regulatory, administrative or tax authority, agency or commission or
any court, tribunal, or judicial or arbitral body (“Governmental Authority”), which may negatively affect or prevent the performance of its obligations hereunder or under the other Related Contracts; 

(f) it has good, valid and marketable title to, valid and subsisting leasehold or acquisition interests in or to, or valid, binding and enforceable rights to, the Terminal and will have and keep good, valid and marketable title to, valid and
subsisting leasehold or acquisition interests in or to, or valid, binding and enforceable rights to the Terminal and other relevant assets and rights required for the performance hereof (“Assets”); 

(g) it is not a party and will not enter into any agreement, arrangement, transaction, lease, license, note, mortgage, indenture, contract and other contractual rights and obligations, whether written or oral which negatively affect or
prevent the performance of its obligations hereunder; 

(h) all Assets are (i) in good operating condition and repair, and are adequate for the uses to which they are being put and (ii) sufficient for the performance of the obligations of CSN hereunder or under the other Related Contracts;

(i) it has been and will continue to be in full compliance with all Applicable Law related to the performance of this Agreement, including without limitation those regarding tax, environmental, labor and social security matters; 

(j) it has obtained and will keep all licenses, permits and authorizations required for its operation and the performance of this Agreement; and 

(k) there is no court or administrative litigation, action, suit, proceeding, condemnation, investigation, claim, audit, order, decision, decree, writ, judgment, injunction, determination or award or any arbitration proceeding that may
prevent, limit or affect CSN’s ability to perform any of its obligations under this Agreement. 

CONFIDENTIAL TREATMENT REQUESTED BY COMPANHIA SIDERURGICA NACIONAL

 

11.2. Representations of NAMISA. NAMISA hereby declares to CSN, as of the signing date below and during performance of the Services, assuming responsibility for the correctness and truthfulness of such representations, that: 

(a) it is a duly organized and validly established joint stock corporation under the laws of Brazil and that it has full legal capacity to own and operate its facilities and conduct its business as conducted at present, and is duly qualified
to contract the Services under the terms of this Agreement; 

(b) it has obtained all the corporate or similar authorizations required to sign this Agreement and to comply with the obligations attributed to it hereunder; 

(c) this Agreement has been duly and validly executed and delivered by NAMISA and constitutes a legal, valid and binding obligation insofar as NAMISA is concerned and is enforceable against it on the terms hereof;

(d) it is not insolvent, under court protection from creditors, extrajudicial or judicial recovery, and it is neither impeded from paying its obligations and nor has it been declared bankrupt; 

(e) neither the execution and delivery of this Agreement nor the consummation of the transactions and performance of the terms and conditions of this Agreement by NAMISA will (i) result in a violation or breach of or default under any
provision of the by-laws of NAMISA; (ii) will result in a violation or breach of or default under any provision of any agreement, indenture or other instrument under which NAMISA is bound; or (iii) violate any Applicable Law of or by any
Governmental Authority which may negatively affect or prevent the performance of its obligations hereunder; 

(f) it has been and will continue to be in full compliance with all Applicable Law related to the performance of this Agreement, including without limitation those regarding tax, environmental, labor and social security matters; 

(g) it has obtained and will keep all licenses, permits and authorizations required for its operation and the performance of this Agreement; and 

(h) there is no court or administrative litigation, action, suit, proceeding, condemnation, investigation, claim, audit, order, decision, decree, writ, judgment, injunction, determination or award or any arbitration proceeding that may
prevent, limit or affect NAMISA’s ability to perform any of its obligations under this Agreement. 

CLAUSE TWELVE – EFFECTIVE TERM 

12.1. This Agreement shall take effect on the signing date below, except, however, that the performance of the Services shall begin on the date set out in Clause 2.1 above. This Agreement shall be terminated (a) when performance of the
Services under the terms of this Agreement is concluded or (b) in the manner provided by Clause 14 below, whichever occurs first. 

12.2. In the event that the Terminal ceases to be at any time during the term of this Agreement registered as a bounded warehouse (armazém alfandegado) with the Brazilian Revenue Service (Secretaria da Receita Federal do
Brasil) and/or any other competent authority and as a result of that the physical movements, symbolic transfers, flows of invoices or rendering of Services under this Agreement becomes subject to any value added tax (including ICMS) imposed by
Brazilian federal or state taxing authorities, the Parties shall discuss in good faith on how the value added tax burden will be shared between them. If the parties do not reach a reasonable agreement within the period of six (6)
months counted from the date of the first tax imposition, the Parties shall equally share the cash, economic and financial burden related to the imposition of such value added taxes.

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CLAUSE THIRTEEN – ACTS OF GOD, FORCE MAJEURE AND FORTUITIES 

13.1. Provided that the provisions of this Clause are complied with, neither of the Parties shall be held liable with respect to the other due to non-fulfillment of any obligation (except pecuniary obligations) attributed to it under this
Agreement and insofar as such non-fulfillment is directly attributable to an event of force majeure or act of God under Brazilian law, as defined by article 393, sole paragraph, of the Civil Code, including but not limited to (a) acts of wars
(whether declared or not ), epidemics, sabotage, military actions or hostilities and acts of terrorism or the escalation thereof occurring after the date hereof; (b) regional or national strikes, work stoppages, slowdowns or lockouts of any trade
category involved in performance of the Services or adversely affecting abilities of either Party to comply with the terms and conditions of this Agreement; (c) acts of God and inclement weather or such other atypical events of nature that are not
predictable and/or the effects of which cannot be avoided by employing reasonable control measures; and (d) accidents or emergency stoppages in order to prevent accidents that impede or restrict the operation and/or construction and/or expansion of
installations related to performance of the Services; (e) any decision by an arbitration panel or court of law (even if preliminary and subject to further appeal), obtained by or granted in favor of third parties that prevents compliance with either
Party’s obligations under this Agreement); (f) expropriation, or statement of eminent domain for expropriation purposes (declaração de utilidade pública), or any other restriction imposed by any public authority on
either Party’s assets which prevents either Party’s assets or abilities to comply with the terms and conditions of this Agreement; (g) any changes in Applicable Law occurring after the date hereof which prevents either Party from complying
with the terms and conditions of this Agreement; and (h) any other circumstance, change, development, event or fact that is unpredictable or unavoidable by the affected Party and which prevents such Party from complying with the terms and conditions
of this Agreement, if and to the extent any such events qualify as force majeure under article 393 sole paragraph of the Civil Code (“Force Majeure Event”). 

13.1.1. For all purposes, a Force Majeure Event under the other Related Contracts that renders unfeasible or otherwise prevents the performance of the Related Contracts in whole or part, including this Agreement, shall be considered a Force
Majeure Event under this Agreement. 

13.2. In case of the occurrence of a Force Majeure Event, the Party whose obligations are being affected by such Force Majeure Event (such Party being hereinafter referred to as the “Affected Party”) shall have 5
(five) Working Days counting from such event to notify the other Party of same and prove by means of appropriate documents, as the case may be, the occurrence of such event, as well as its direct or indirect impact on its obligations under this
Agreement. Notwithstanding, the Affected Party is to implement at its own expenses and as soon as possible measures to mitigate the effects and the direction of the event of Force Majeure or Act of God, indicating such measures to the other Party
and keeping the latter constantly informed on the progress of such measures. 

13.3. Should a Force Majeure Event occur: 

 (a) up to the end of [•], CSN shall pay to NAMISA a compensation equal to: 

K = P 2 x A 

Being: 

K – compensation amount 

CONFIDENTIAL TREATMENT REQUESTED BY COMPANHIA SIDERURGICA NACIONAL

 

     A – Quantity of Services not provided due to the Force Majeure Event  

and  

  

(b) On or after [•], CSN shall pay to NAMISA an compensation equal to: 

X = P2 x B 

Being: 

X – compensation amount 

B – Quantity of Services not provided due to the Force Majeure Event in the first 365 days of such Force Majeure Event. 

13.3.1. Compensation amounts under Clause 13.3 shall be paid by CSN to NAMISA on a monthly basis until the 30th day of the subsequent month after the occurrence of a Force Majeure Event. Such provision shall apply to subsequent
months, if the Force Majeure Event continues. 

CLAUSE FOURTEEN –MATERIAL BREACH, TERMINATION AND CONSEQUENCES OF TERMINATION 

14.1. CSN shall be deemed to have committed a material breach of this Agreement if, for reasons attributable to CSN, CSN provides Services in any given Mining Year in relation to less than [•] of the Basic Annual Quantity
(“Material Breach”) and fails to remedy such Material Breach within [•] days from the date of receipt of a written communication to that effect. 

14.2. If NAMISA breaches any obligation set forth herein (“NAMISA’s Default”), CSN shall provide written notice of default to NAMISA within 30 (thirty) days following the occurrence of such breach (“Notice of
NAMISA’s Default”). CSN and NAMISA shall discuss in good faith the amount of the indemnification due by NAMISA to CSN, or any other remedies reasonably available, which, in no event, shall be greater than the loss of income of CSN
deriving from Services not effected as a consequence of the NAMISA’s Default. If no agreement is reached by the Parties within [•] days as from receipt of the Notice of NAMISA’s Default, CSN may claim for determination of the
indemnification amount according to Clause Eighteen. 

14.3. The Parties acknowledge and agree that this Agreement is not intended to be terminated before the full performance hereof unless exceptional circumstances occur or otherwise expressly provided hereunder, due to the substantial
investments made by both Parties for the performance thereof and the reliance of both Parties on the continued and full performance hereof. Without prejudice to any other rights provided in this Agreement, but with the exclusion of any other
termination right, except for those provided in this Clause 14, this Agreement may be terminated in the cases indicated below, provided that the Party that gives rise to such termination, either due to breach of contract or other circumstance
attributable to it (with such Party being hereinafter referred to as the “Defaulting Party”), shall not have any right to file a complaint and/or claim of any kind of indemnity whatsoever: 

(a) by the other Party, at its exclusive discretion, in the event of non-compliance by the Defaulting Party with any monetary obligation set forth in this Agreement, provided that the other Party notifies the Defaulting Party with
respect to such non-performance and the Defaulting Party does not remedy such non-compliance within a period of [•] days counting from the date of receipt of such notification; or 

CONFIDENTIAL TREATMENT REQUESTED BY COMPANHIA SIDERURGICA NACIONAL

 

(b) by NAMISA at its exclusive discretion, in the event of occurrence of a Material Breach; or 

(c) by the other Party, at its exclusive discretion, in case any representation made in this Agreement by the Defaulting Party proves to be incorrect or untruthful, for any reason, as a result of which, at such other Party’s reasonable
judgment, the due performance of this Agreement is materially adversely affected, provided that if such incorrect or untruthful matter can be straightened out and is not remedied within a period of 180 (one hundred and eighty) days counting from the
date of receipt of such notification pointing out the incorrect or untruthful representation; or 

(d) by the other Party, at its exclusive discretion, in the event of acceptance of a process for court recovery, the commencement of extrajudicial recovery, declaration of bankruptcy or dissolution of the Defaulting Party; or 

(e) by NAMISA, if any other Related Contract is terminated by NAMISA due to a Material Breach by CSN un as defined in such Related Contract. 

14.4. In the event this Agreement should be terminated, CSN shall make available to NAMISA all the iron ore owned by NAMISA that is at the Terminal, as well as all documents owned by NAMISA that are in CSN’s power. The Iron Ore and the
documents shall be made available through payment by NAMISA of all expenses and costs for the Services performed and perchance not yet settled, with any credits being offset. NAMISA is to arrange, at its own expenses, for removal of the Iron Ore
from the Terminal within a period of no more than [•] days counting from the date for termination of the Agreement, under penalty of the respective abandonment thereof being characterized, in the manner provided by the Brazilian Civil Code.

14.5. Should this Agreement be terminated for a reason attributable to NAMISA, NAMISA shall indemnify CSN for losses and damages (including any loss of income (business interruption) and indirect losses and damages, including consequential
damages) effectively incurred due to termination of this Agreement, which indemnity is hereby fixed in an amount corresponding to the balance of CSN’s debt to NAMISA in relation to the Advance Payment as of the termination date, with CSN being
authorized, to such end, to offset the amount of such indemnity against CSN debt with NAMISA in relation to the Advance Payment. 

14.6. If upon conclusion of the performance of the Contractual Quantity set forth under this Agreement, subject to the extension of the term hereof, there is any balance of the Advance Payment made by NAMISA to CSN under Clause 9.1
(“Balance”), NAMISA shall pay to CSN an amount corresponding to such Balance (“Payment”), in consideration for (i) the investments made by CSN in order to render the Services to NAMISA (purchasing equipment, hiring
personnel, implementing systems, etc.), and (ii) the commitment assumed by CSN to guarantee performance of the Services for NAMISA for the term of this Agreement, including prejudice to any other business opportunities involving the Terminal. It is
hereby agreed by the Parties on an irrevocable basis that the Balance shall be immediately offset against the Payment. 

CLAUSE FIFTEEN – GENERAL PROVISIONS 

15.1. The Parties acknowledge and agree that this Agreement contains all the requisites for this instrument to serve as a valid document for commencement of execution proceedings (título executivo extrajudicial), for all legal
intents and purposes. 

15.2. This Agreement reflects the entire understanding of the Parties with respect to its scope and replaces any and all previous agreements and understandings. Each one of the Parties hereby acknowledges and confirms that it is not signing
this Agreement on the basis of any representation,
guarantee or other commitment by the other Party that is not fully reflected in the provisions hereof. Any matter relating to performance of the Services that is not specifically provided in this Agreement shall be examined separately and mutually
agreed upon by the Parties. 

CONFIDENTIAL TREATMENT REQUESTED BY COMPANHIA SIDERURGICA NACIONAL

 

15.3. This Agreement is not entered into on an exclusive basis by CSN, which may contract third parties at the same time or otherwise for performance of services that are identical or similar to the Services covered hereby. 

15.4. Without prejudice to the provisions contained in Clause 15.5 below, this Agreement binds the Parties and/or successors on any degrees whatsoever.  In this sense, in the event of merger, amalgamation (upstream merger under Brazilian
law), spin-off or change in control of either of the Parties, continuity of this Agreement is expressly assured, obligating the successor or any third parties related in any manner to the merger, amalgamation, spin-off or change in control of either
of the Parties to comply with all the clauses, terms and conditions established in this Agreement. 

15.5. Neither Party shall assign or transfer (in whole or in part) its rights or obligations under this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld, delayed or conditioned;
provided, however, that (i) each of the Parties may assign all of its rights and obligations under this Agreement without the prior written consent of the other Party to one or more of its Affiliates, as defined in Clause 15.5.2 below, and (ii) CSN
shall assign all of its rights and obligations under this Agreement without the prior written consent of NAMISA to the third party that acquires the Terminal. This Agreement shall be binding upon and inure to the benefit of the Parties and their
respective successors and permitted assigns and shall be enforceable by the Parties hereto and their respective successors and permitted assigns. 

15.5.1 In addition, to the foregoing, in the event of an assignment or transfer as stated in Clause 15.5 (i), the assigning Party shall remain jointly liable with the assignee for all obligations under this Agreement. 

15.5.2 For the purposes of Clause 15.5 and 15.5.1 above, “Affiliates” shall mean, with respect to any Party, a person that directly or indirectly controls, or is under common control with, or is controlled by, such person. As
used in this definition, “control” (including, with its correlative meanings, “controlled by” and “under common control with”) shall mean possession, directly or indirectly, of securities having 50% or more of the
voting power for the election of directors or other governing body of a corporation or 50% or more of the partnership or other ownership interests of any other person. 

15.6. This Agreement may only be amended or modified by means of prior agreement between the Parties and the signing of a specific amendment signed by both Parties. 

15.7. Any omission or tolerance by the Parties in requiring the correct, full and punctual compliance with the specific or generic terms and conditions contained in this Agreement, or in exercising any prerogative hereunder, shall not
constitute any kind of waiver, desistance or novation, and nor shall it affect the right of the Parties to exercise them at any time. 

15.8. In the event any provision of this Agreement should be considered invalid, illegal or unenforceable for any reason, the validity, legality and enforceability of the remaining provisions contained in this Agreement shall not in any
manner whatsoever be affected or prejudiced thereby and shall remain in full force and effect. The Parties shall negotiate in good faith to replace any provisions considered invalid, illegal or unenforceable with valid, legal and enforceable
provisions, the effects of which shall approximate as closely as possible the legal and economic effects intended by the provisions considered invalid, illegal or unenforceable. 

CONFIDENTIAL TREATMENT REQUESTED BY COMPANHIA SIDERURGICA NACIONAL

 

15.9. This Agreement does not create or intend to create any kind of company, association, joint venture, cooperative, partnership, consortium, or agency, and neither does it attribute or aim to create any kind of relationship involving
principal and agent, commercial representation, business management or other kind of similar legal arrangement between the Parties, except for those expressly provided in this Agreement and directly related to performance of the Services by CSN to
NAMISA. 

15.10. Each Party is responsible for covering its own costs and other expenses incurred or to be incurred in relation to the signing, execution and performance of this Agreement. 

15.11. Should, after the signature of this Agreement, any taxes be created, or any tax rates, taxable base or manners for calculating any tax existing at the signing date below and involving taxable events related in any manner to this
Agreement be altered, via Applicable Law, or any special tax benefit available to the Parties related to this Agreement granted by any federal, state of municipal taxing authorities be extinguished, the Parties shall negotiate, in good faith, to
amend this Agreement in order to restore its economic and financial balance. 

CLAUSE SIXTEEN – CONFIDENTIALITY 

16.1. During the time this Agreement remains in effect and for the period of 5 (five) years after termination hereof, the Parties undertake – for themselves as well as on behalf of third parties related to them – to maintain
absolute secrecy regarding the terms and conditions of this Agreement, and also with respect to any and all information obtained as a result of same, except (a) if the disclosure of such information is determined by this Agreement or if such
information is already proven to be in the public domain, (b) with the express and prior authorization of the other Party, (c) in order to exercise any rights attributed to the Parties according to this Agreement, (d) required by Applicable Law, by
an order of any governmental authority or as a result of a judicial order, case in which the disclosure shall be limited to the clauses, terms and conditions that are to be disclosed pursuant to such determination; or (e) in case of NAMISA, the
disclosure of information to the Intervening Parties and to the shareholders of the Japanese SPC. 

CLAUSE SEVENTEEN – COMMUNICATIONS 

17.1. All notices, communications, requests, authorizations and consents that have to be transmitted or given by the Parties under this Agreement shall only be valid and effective if provided in writing through correspondence (under protocol
or sent against notice of receipt) or fax (with proof of transmission) addressed in the following manner (or in such other manner as may be notified subsequently by one Party to the other): 

(a) NACIONAL MINÉRIOS S/A: 

Address: Alameda da Serra, no 400, 9o andar 

             CEP 34000-000 – Nova Lima – MG 

Phone: (0xx31) 3269-1410 

Fax: (0xx31) 3269-1414 

At.: Diretor Comercial (Attention of Commercial Director) 

Cc.: Diretor de Operações e Diretor Jurídico (Copied to Operations Director and Legal Director) 

(b) COMPANHIA SIDERÚRGICA NACIONAL: 

Address: Av. Brigadeiro Faria Lima, no 3.400, 20o andar 

             CEP 04538-132 – São Paulo – SP 

CONFIDENTIAL TREATMENT REQUESTED BY COMPANHIA SIDERURGICA NACIONAL

 

Phone: (0xx31) 3749-1210 

Fax: (0xx31) 3749-1284 

At.: Diretor de Mineração (Attention of Mining Director) 

Cc.: Diretor Comercial de Minério de Ferro e Diretor Jurídico (Copied to Iron Ore Commercial Director and Legal Director) 

 (c) BIG JUMP PARTICIPAÇÕES S.A.: 

 Address: Rua da Consolação, 247, 3rd Floor, Room 85A, São Paulo, Brazil

  Phone: (0xx11) 3170-8509 

  Fax: (0xx11) 3170-8549 

  At.: Diretor Presidente (Attention of Director-President) 

 (d) BRAZIL JAPAN IRON ORE CORPORATION: 

 Address: 5-1, Kita-Aoyama 2-chome, Minato-ku, Tokyo, 107-8077, Japan

  Phone: (81 3) 3497-3365 

  Fax: (81 3) 3497-3342 

  At.: Mr. Yasuhiro Miyata 

 (e) POSCO: 

 Address: 892 Daechi 4-dong Kangnam-gu, Seoul, 135-777, Korea 

  Phone: (82 2) 3457-0306 

  Fax: (82 2) 3457-1908 

  At.: Mr. Myung Deuk Seo (Group Leader) 

CLAUSE EIGHTEEN – ARBITRATION 

18.1. The Parties are to submit any dispute, controversy or disagreement resulting from this Agreement or related to same solely and exclusively to arbitration in the manner provided by Law No. 9.307 of September 23, 1996 and by this Clause,
provided that such dispute, controversy or disagreement is not settled amicably by the Parties within a period of 30 (thirty) days counting from the date on which one of the Parties has notified the other regarding the existence of such dispute,
controversy or disagreement. Arbitration shall be definitive and the results thereof binding on the Parties. 

18.2. The arbitration proceedings shall take place in the City of São Paulo, State of São Paulo, and shall be administered by the International Court of Arbitration of the International Chamber of Commerce
(“ICC”) and, except as provided in this Agreement, shall be instituted and processed according to the Rules of Arbitration of the ICC (“Rules”). 

18.3. The arbitration panel shall be made up of 3 (three) arbitrators, with each one of the Parties being responsible for appointing 1 (one) arbitrator and these 2 (two) arbitrators appointed by the Parties responsible for jointly appointing
the third arbitrator, who shall preside over the arbitration panel. 

18.4. The charges, fees and other expenses directly related to the arbitration proceedings, which include the costs due to the ICC and the arbitrators’ fees and, as the case may be, any expert witnesses called, shall be initially borne
by both Parties in the same proportion, provided that the provisions contained in the Rules are complied with, though the arbitration award shall define the final allocation of such charges, fees and other expenses between the Parties. Each Party
shall cover the expenses of
the respective attorneys and assistants that it engages to represent it or to assist it during the arbitration proceedings. 

CONFIDENTIAL TREATMENT REQUESTED BY COMPANHIA SIDERURGICA NACIONAL

 

18.5. Without prejudice to the other provisions contained in this Agreement, the Parties hereby acknowledge and admit the possibility of appealing to the Judiciary to obtain any urgent court measures that may be considered necessary to
preserve their respective rights and interests and such measures are not to be interpreted as a waiver by the Parties of arbitration proceedings. For such purposes and for any court enforcement of an arbitration award issued by the arbitration
panel, the Parties hereby choose the courts of the Judicial District of São Paulo, State of São Paulo, as having sole jurisdiction, with express waiver of any other courts, regardless of however much jurisdictional privilege they might
have. 

In witness whereof, the Parties and the Intervening Parties have caused this Agreement to be executed in five (5) counterparts with the same form and contents, before the two (2) undersigned witnesses. 

São Paulo, SP, October 21st, 2008 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

CONFIDENTIAL TREATMENT REQUESTED BY COMPANHIA SIDERURGICA NACIONAL26/39

 

 

Signature  Page 1/5 of the Port Operating Service Agreement, entered into on  October 21, 2008, among Nacional Minérios S/A. Companhia Siderúrgica  Nacional, Big Jump Energy Participações S.A., Brazil Japan Iron Ore Corporation  and POSCO.

 

 

NACIONAL MINÉRIOS S/A

 

 

	
________________________________
	
________________________________

	
Name:

Title:
	
Name:

Title:

 

 

 

Signature  Page 2/5 of the Port Operating Service Agreement, entered into on October 21, 2008,  among Nacional Minérios S/A. Companhia Siderúrgica Nacional, Big Jump Energy  Participações S.A., Brazil Japan Iron Ore Corporation and POSCO.

 

COMPANHIA SIDERÚRGICA NACIONAL

 

 

	
________________________________
	
________________________________

	
Name:  

Position:
	
Name:  

Position:

 

 

 

 

 

Signature  Page 3/5 of the Port Operating Service Agreement, entered into on  October 21, 2008, among Nacional Minérios S/A. Companhia Siderúrgica  Nacional, Big Jump Energy Participações S.A., Brazil Japan Iron Ore Corporation  and POSCO.

 

BRAZIL JAPAN IRON ORE CORPORATION

 

 

	
________________________________
	
________________________________

	
Name:

Title:
	
Name:

Title:

 

 

 

Signature  Page 4/5 of the Port Operating Service Agreement, entered into on October 21, 2008,  among Nacional Minérios S/A. Companhia Siderúrgica Nacional, Big Jump Energy  Participações S.A., Brazil Japan Iron Ore Corporation and POSCO.

 

BIG JUMP ENERGY PARTICIPAÇÕES S.A.

 

 

	
________________________________
	
________________________________

	
Name:

Position:
	
Name:

Position:

 

 

Signature  Page 5/5 of the Port Operating Service Agreement, entered into on October 21, 2008,  among Nacional Minérios S/A. Companhia Siderúrgica Nacional, Big Jump Energy  Participações S.A., Brazil Japan Iron Ore Corporation and POSCO.

 

POSCO

 

 

	
________________________________
	
________________________________

	
Name:  

Position:
	
Name:  

Position:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Witnesses:

 

 

	
________________________________
	
________________________________

	
Name:  

ID (RG) No.:

Tax Reg. (CPF/MF) No.:
	
Name:  

RG No.:

CPF/MF No.:

 

ATTACHMENT I

  CRITERIA FOR  OPERATIONAL EVALUATION AND ACCEPTANCE OF VESSELS AT BERTH 102 (SHIPMENT OF  ORES) AT THE PORT OF ITAGUAÍ – TECAR

1.       Berth 102 of the Port of Itaguaí, where  the vessels named by NAMISA and accepted by CSN shall be moored for the loading  of the Iron Ore, has a capacity to handle CAPESIZE vessels with the following  characteristics:

      (a)     operating  characteristics of the berth:

         (1)    length: 270 (two hundred and  seventy) meters; and

         (2)     maximum approachable pier (distance between  the extreme west dolphin and the mooring head facing east): 330 (three hundred  and thirty) meters; 

     (b)     restrictions in relation to vessels:

         (1)     maximum deadweight tonnage: 180,000 (one  hundred and eighty thousand) tons;

         (2)     total maximum length: 290 (two  hundred and ninety) meters;

         (3)     maximum size of holds: 46 (forty  six) meters;

         (4)     maximum draft: 17.1 (seventeen point one)  meters;

         (5)     maximum air draft: 20 (twenty)  meters; and

         (6)     specification of the vessels:  bulk carriers, ore-oil carriers and ore-bulk-oil carriers.

     c) In case the characteristics  of the Loading Berth change in the future, CSN shall notify NAMISA of such  change with 90 (ninety) days in advance.   The Parties undertake that acceptable vessels size shall change  accordingly.

 2.       For vessels that are as old as 18  (eighteen) calendar years:

     (a)     Favorable opinion from the Management of  Terminal Scheduling and Operations;

     (b)     Recommendation of Rightship or equivalent  website;

     (c)     Consultation of historical background at  the Terminal;

     (d)     Letter of Seaworthiness with loading rate  and time (Part A); and

     (e)     Letter of Seaworthiness as per the attached  Statement of Compliance (Part B).

3.       For vessels between the ages of 18 (eighteen) and 25  (twenty-five):

     (a)     Requisites set out in sub-items (a), (b),  (c), (d) and (e) of item 2 above; and

     (b)     Valid certificate of inspection of  condition of bulk carrier issued by the DPC (Department of Ports and Coasts),  for operations of loading solid bulk cargoes with specific weight greater than  or equal to 1.7800 metric tons per cubic meter corresponding to the stevedore  factor greater than or equal to 0.5618 cubic meter / 1 metric ton or 20.1571  cubic feet / 1 long ton).

 

 

 

  STATEMENT OF COMPLIANCE 

(Part A)

 From: [name of the vessel] I.M.O.: [vessel number]

 To: CSN Port/Terminal - TECAR. 

I, as___________
, hereby declare that the above-mentioned vessel is covered with flag state statutory and class certificates in full term condition, and assure good seaworthiness, adequateness, performance and safety operational conditions
in respect of the above-mentioned vessel when operating at the CSN Port/Terminal. This assurance covers the main and auxiliary engines, cargo holds, hatches (including opening and closing) and other necessary fittings in the cargo space, ballast
system, deck gears, oil spill control systems including SOPEP, crew training, pumps, pipes, valves and also that coverage apply to any loss, damage and delay directly and/or indirectly related to any operational deficiency that may arise with
respect toe vessel, and she is able to comply with the regular port conditions and the de-ballasting operations that will be carried out simultaneously with loading operation as follows: 

ltaguaí Port - Berth 102:

Maximum loading rate: 6,000 t/h

Average loading rate: 4,500 t/h

Loading time: XX h 

Air draft: 20.00 m 

The above statement is given in true words, good faith and free-will. 

Date: month / day / year / time. 

	
	   Issued by Owners / Shipmaster in the vessel interest: 
	

      

      

	
	Signed by: (name of person and function/rank/company) with stamp 

 

  STATEMENT OF COMPLIANCE

  (Part B)

 From: [name of the vessel] I.M.O.: [vessel number]

 To: CSN Port/Terminal - TECAR. 

I hereby declare that the above-mentioned vessel is covered with flag state statutory and class certificates in full term condition and also assure good seaworthiness, adequateness, performance and safety operational conditions related to vessel
when operating at the CSN Port/Terminal.  This assurance covers cargo holds, hatches and other necessary fittings in the cargo space, ballast system, deck gears and oil spill control systems including SOPEP, crew training, pumps, pipes and valves.
Also this coverage applies to any loss, damage and delay directly and/or indirectly related to any operational deficiency arising from vessel's employment requisition. 

List of certificates including expiration dates (*): 

			
	CERTIFICATES 	DATE OF
	   ISSUE 	DATE OF

     EXPIRE 
	VESSEL REGISTER CERTIFICATE 	 	 
	CARGO VESSEL SAFETY CONSTRUCTION CERTIFICATE 	 	 
	INTERNATIONAL LOAD LINS CERTIFICATE 	 	 
	IOPP / MARPOL CERTIFICATE 	 	 
	INTERNATIONAL SAFETY MANAGEMENT - (ISM)	 	 
	P & I CLUB CERTIFICATE OF ENTRY 	 	 
	INTERNATIONAL VESSEL SECURITY CERTIFICATE (ISSC)	 	 
	DOCUMENT OF COMPLIANCE 	 	 

(*) Any certificate in condition other than in term full status, gives the right to accept or refuse the vessel's nomination submitted to terminal's consideration. 

The above statement is given in true words, good faith and free will.

Date: month / day / year / hours. 

	
	  Issued by Owners / Shipmaster in the vessel interest: 
	

        

        

	Signed by: (name of person and function/rank/company) with stamp 

 

 

ATTACHMENT II 

    SAMPLING AND ANALYSIS PROCEDURES 

 1. A representative sampling of the Iron Ore is to be prepared by CSN, or by a representative indicated by CSN and approved by NAMISA, at CSN’s expenses, for each shipment of Iron Ore in a vessel named by NAMISA based on the applicable
  ISO norms or any other norm or procedure that may be agreed between the Parties. The chemical, grain size and dampness analysis of the samples obtained shall be performed by CSN or by a representative appointed by CSN and approved by NAMISA, at
  CSN’s expenses, based on applicable ISO norms or any other norm or procedure that may be agreed between the Parties. A certificate of Iron Ore quality shall be issued by CSN for each shipment. 

 2. The analyses, including chemical, grain size and dampness, carried out by CSN are to be considered as the basis for the respective Shipment Certificate to be issued by CSN. 

 3. CSN is to maintain a representative sample of Iron Ore taken on the occasion of each shipment for a period of 180 (one hundred and eighty) days counting from the date of each shipment. Once this period has elapsed and no questioning has
  been raised by NAMISA in relation to the provisory and definitive certificates issued by CSN, CSN may discard such representative sample. 

 4. NAMISA or a representative appointed by NAMISA and approved by CSN may, at NAMISA’s expenses, may accompany the Iron Ore sampling and analysis activities at the Terminal. 

 

 

 

 

 

ATTACHMENT III

 

 

 

 

	2008
	7,200
	Basic Annual Quantity, divided by the number of months of supply in the Mining Year

	2009
	18,000
	1,500

	2010
	21,000
	1,750

	2011
	21,000
	1,750

	2012
	30,000
	2,500

	2013
	38,400
	3,200

	2014
	39,000
	3,250

	2015
	39,000
	3,250

	2016
	37,200
	3,100

	2017
	36,000
	3,000

	2018
	36,000
	3,000

	2019
	36,000
	3,000

	2020
	36,000
	3,000

	2021
	36,000
	3,000

	2022
	36,000
	3,000

	2023
	36,000
	3,000

	2024
	36,000
	3,000

	2025
	36,000
	3,000

	2026
	36,000
	3,000

	2027
	36,000
	3,000

	2028
	36,000
	3,000

	2029
	36,000
	3,000

	2030
	36,000
	3,000

	2031
	33,000
	        2,750

	2032
	33,000
	2,750

	2033
	33,000
	2,750

	2034
	32,400
	2,700

	2035
	32,400
	2,700

	2036
	32,400
	2,700

	2037
	32,400
	2,700

	2038
	32,400
	2,700

	2039
	32,400
	

        2,700

	2040
	32,400
	2,700

	2041
	32,400
	2,700

	Total
	1,113,000
	 

 

 

 

ATTACHMENT IV

BANK ACCOUNTS OF THE PARTIES

 

 

NACIONAL MINÉRIOS S/A

Banco Itaú – 341 (Bank No.)

Agência no 910 (Branch No.

Conta-Corrente no 09595-9 (Current Account No.)

 

 

COMPANHIA SIDERÚRGICA NACIONAL

Banco Citibank – 745 (Bank No.)

Agência no 003 (Branch No.)

Conta-Corrente no 5234085-6 (Current Account No.)

 

 

 

 

 

 

 

  

 

ATTACHMENT V

 

TAXES IMPOSED ON THE SUPPLY

 

 

 

	
Tax
	
Rate

	
PIS
	
1.65%

	
COFINS
	
7.60%

	
ISS
	
5.00%

 

 

Assumption:  ISS is already  included in PU.

 

Taxation:       Price = PU / [1 -  (1.65% + 7.60% - X%- Y%)] 

 

 

X% and Y%  mean the difference between the nominal tax  rates of PIS, equivalent to 1.65% and COFINS, equivalent to 7.6% and the  effective tax rates of PIS and COFINS Contributions, respectively, paid by CSN in  the month preceding the one in which the PU is calculated.

 

ATTACHMENT VI

 

Example of Calculation of the Compensation Amount

 

 

 

	

Monetary compensation for contract related breach

		
Scenario A
	
Scenario B
	
Scenario C

	
Services provided under transportation agreement as a % Declared Quantities
	
100%
	
96%
	
90%

	
Net revenues
	
100.000
	
96.000
	
90.000

	
Fixed costs
	
(20.000)
	
(20.000)
	
(20.000)

	
Variable costs
	
(50.000)
	
(48.000)
	
(45.000)

	
Penalties, damages or indemnities paid by NAMISA to any third parties resulting from contract related breach
	
N/A
	
N/A
	
(1.000)

	
"Cash flow"
	
30.000
	
28.000
	
24.000

	

"Monetary compensation"

	
Net revenue shortfall
	
N/A
	
N/A
	
6.000

	
Fixed cost adjustment
	
N/A
	
N/A
	
N/A

	
Variable costs adjustment
	
N/A
	
N/A
	
(3.000)

	
Penalties, damages or indemnities paid by NAMISA to any third parties resulting from contract related breach
	
N/A
	
N/A
	
1.000

	
"Cash flow" shorfall
	
N/A
	
N/A
	
4.000

	

Total "cash flow"
	
30.000
	
28.000
	
28.000aircastle_exhibit10-1.htm

Exhibit 10.1

AIRCASTLE ADVISOR LLC

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into on July 13, 2010, effective as of January 1, 2010 (the “Effective Date”), by and between Aircastle Advisor LLC, a Delaware limited liability company (the “Company”), and Ron Wainshal (“Executive”).  Where the context permits, references to “the Company” shall include the Company and any successor of the Company.

 

W I T N E S S E T H:

WHEREAS, the Company and Executive previously entered into an employment agreement, dated May 2, 2005 (the “Original Agreement”), pursuant to which Executive serves as the Chief Executive Officer of the Company (the “CEO”); and

 

WHEREAS, the Company and Executive mutually desire to amend and restate the Original Agreement in its entirety on the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements herein contained, together with other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:

 

1.         SERVICES AND DUTIES.  Subject to Section 2 hereof, from and after the Effective Date, Executive shall, pursuant to the terms of this Agreement, continue to be employed by the Company as the CEO, and shall report directly to the Board of Directors (the “Board”) of Aircastle Limited, a Bermuda exempted company (or any successor thereto) (“Aircastle”).  The principal location of Executive’s employment with the Company shall be at the Company’s headquarters in Stamford, Connecticut, although Executive understands and agrees that Executive may be required to travel from time to time for business reasons.  During the Term (as defined in Section 2), Executive shall be a full-time employee of the Company, shall dedicate substantially all of Executive’s working time to the Company, and shall have no other employment or other business ventures which are undisclosed to the Company or which conflict with Executive’s duties under this Agreement.  Executive shall (a) have all authorities, duties and responsibilities customarily exercised by an individual serving as chief executive officer of a company the size and nature of the Company; (b) be assigned no duties or responsibilities that are materially inconsistent with, or that materially impair his ability to discharge, the foregoing duties and responsibilities; and (c) have such additional duties and responsibilities, consistent with the foregoing, as the Board may from time to time assign to him. Notwithstanding the foregoing, nothing herein shall prohibit Executive from (i) participating in trade associations or industry organizations which are related to the business of the Company or engaging in charitable, civic or political activities, (ii) engaging in personal investment activities for Executive and Executive’s family that do not give rise to any conflicts of interest with the

 

  

  

  

Company or its Affiliates, or (iii) with the prior approval of the Chairman of the Board, accepting directorships unrelated to the Company that do not give rise to any conflicts of interest with the Company or its Affiliates, in the case of the foregoing clauses (i), (ii) and (iii), so long as such interests do not materially interfere, individually or in the aggregate, with the performance of Executive’s duties hereunder.  The Company acknowledges and approves the current activities of Executive as set forth on Schedule 1 hereto.

 

2.         TERM.  Executive’s employment under the terms and conditions of this Agreement shall commence on the Effective Date.  Such employment shall continue for an initial term of three (3) years following the Effective Date (the “Initial Term”).  The term of Executive’s employment under this Agreement will be automatically extended on each January 1 following the expiration of the Initial Term for an additional one-year term (each, a “Renewal Term”).  The Initial Term and any Renewal Terms are collectively referred to as the “Term,” and the Term shall continue as described in the preceding sentence, unless either the Executive or the Company has given written notice to the other no less than sixty (60) days prior to the expiration of the Term that the Term shall not be so extended.  Notwithstanding the above, the Term shall earlier expire immediately upon the termination of Executive’s employment pursuant to Section 5 hereof.

 

3.         COMPENSATION.

 

(a)        Base Compensation.  The Company shall pay to Executive a base salary in the amount of $600,000 per annum in accordance with the regular payroll practices of the Company (the base salary as in effect from time to time, the “Base Compensation”).  Payment of the Base Compensation is subject to customary employee contributions to any benefit programs in which Executive is enrolled.  The Base Compensation may be increased from time to time at the Board’s sole discretion, but in no event shall the Base Compensation be reduced without Executive’s approval.  The Base Compensation is an increase from the base salary Executive was paid prior to entering into this Agreement.  Accordingly, on the first payroll date following the date Executive’s base salary is increased to reflect the Base Compensation, the Company shall pay to Executive (net of applicable withholdings), in a cash lump sum, an amount equal to the Base Compensation that Executive would have been entitled to receive from January 1, 2010, to the date that Executive’s base salary is so increased.

 

(b)        Annual Cash Bonus.  For each full calendar year during the Term, Executive shall be eligible to receive a targeted annual cash incentive award equal to 100% of the then-current Base Compensation (the “Target Annual Bonus”).  The actual amount of the bonus (each, an “Annual Bonus”) (which may be less or more than the targeted amount) will be determined based on the achievement of performance criteria relating to both Executive and the Company, as determined each year in good faith by the Compensation Committee of the Board (the “Compensation Committee”), following consultation with Executive.  The Annual Bonus, if any, shall be paid to Executive by no later than March 15 of the year following the year to which such Annual Bonus relates, so long as Executive is actively employed by the Company and has

 

  

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not provided a notice of resignation to the Company or received a notice of termination from the Company as of the date of payment.

 

(c)        Annual Equity Award.  For each full calendar year during the Term, Executive shall be eligible to receive a targeted annual equity award equal to 200% of the then-current Base Compensation (each, an “Annual Equity Award”).  The actual amount of the Annual Equity Award (which may be less or more than the targeted amount) will be determined based on the achievement of performance criteria relating to both Executive and the Company, as determined each year in good faith by the Compensation Committee, following consultation with Executive.  The Annual Equity Award, if any, shall be granted to Executive by no later than March 15 of the year following the year to which such Annual Equity Award relates, so long as Executive is actively employed by the Company and has not provided a notice of resignation to the Company or received a notice of termination from the Company as of the date of grant.  The Annual Equity Award may be in the form of restricted stock, restricted stock units or such other equity or equity-based awards as may be granted to senior executives under the Amended and Restated Aircastle Limited 2005 Equity and Incentive Plan (the “2005 Plan”) or a successor plan, and shall vest in equal, annual tranches on January 1 of each of the first three calendar years following the date of grant, generally subject to Executive’s continued employment with the Company as of the applicable vesting date, and shall otherwise be subject to the terms and conditions of this Agreement and, to the extent not inconsistent with this Agreement, the terms and conditions of the 2005 Plan and the definitive award agreement evidencing the grant of the Annual Equity Award under this Section 3(c).

 

(d)        Withholding.  All taxable compensation payable to Executive pursuant to this Agreement shall be subject to any applicable withholding taxes and such other taxes as are required under Federal law or the law of any state or governmental body to be collected with respect to compensation paid by the Company to Executive.

 

4.         BENEFITS AND PERQUISITES.

 

(a)        Retirement and Welfare Benefits.  During the Term, Executive shall continue to be eligible to participate in all fringe benefits and perquisites, and all health, welfare, life insurance, disability, retirement and other benefit plans in which Executive was eligible to participate prior to the Effective Date, and such other benefit plans and arrangements as are made available to the Company’s senior executives during the Term.  The benefits described herein shall be subject to the applicable terms of the applicable plans and shall be governed in all respects in accordance with the terms of such plans as from time to time in effect.  Nothing in this Section 4, however, shall require the Company to maintain any benefit plan or provide any type or level of benefits to its current or former employees, including Executive.

 

(b)        Paid Time Off.  During the Term, Executive shall be entitled to 20 paid vacation days per full calendar year.  To the extent such paid vacation days are not used during a calendar year, such unused days may be carried over from year to year, up to a maximum of 20

 

  

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accrued vacation days, and otherwise in accordance with the Company’s vacation policies as in effect from time to time.

 

(c)        Reimbursement of Expenses.  The Company shall reimburse Executive for any and all expenses reasonably incurred by Executive during the Term in performing Executive’s duties hereunder, including travel, meals and accommodations, upon submission by Executive of vouchers or receipts and in compliance with such rules and policies relating thereto as the Company may from time to time adopt.

 

(d)        Reimbursement of Legal Expenses.  The Company shall pay or reimburse Executive for up to $25,000 of legal fees and expenses reasonably incurred by Executive in connection with the negotiation and execution of this Agreement, subject to Executive’s appropriate documentation of such legal expenses.

 

5.         TERMINATION.  The Term and Executive’s employment hereunder may be terminated (1) by the Company for “Cause” (as defined and determined below), effective on the date on which a written notice to such effect (a “Cause Termination Notice”) is delivered to Executive; (2) by the Company at any time without Cause (which includes pursuant to an election by the Company not to renew the Term, the written notice (pursuant to Section 2) of which shall be deemed a notice of termination of Executive’s employment hereunder), effective sixty (60) days following the date on which a written notice to such effect is delivered to Executive or, at the election of the Company in its sole discretion, such earlier date as is reasonably designated by the Company, provided that the Company shall continue to pay Executive’s Base Compensation for sixty (60) days following such notice of termination; (3) by Executive for “Good Reason” (as defined and determined below), effective sixty (60) days following the date on which a written notice to such effect is delivered to the Company; or (4) by Executive at any time, effective sixty (60) days following the date on which a written notice to such effect is delivered to the Company (or its successors).  Upon any termination of Executive’s employment hereunder, Executive shall be entitled to receive the following:  (i) any accrued but unpaid Base Compensation (to be paid as provided in Section 3(a)); (ii) reimbursement for expenses incurred by Executive prior to the date of termination in accordance with Section 4(c) hereof; (iii) vested benefits, if any, to which Executive may be entitled under the Company’s employee benefit plans as of the date of termination; and (iv) any additional amounts or benefits due under any applicable plan, program, agreement or arrangement of the Company or its Affiliates (such plans, programs, agreements and arrangements, collectively, “Company Arrangements” and the amounts and benefits described in clauses (i) through (iv) above, collectively, the “Accrued Benefits”).  Accrued Benefits under this Section 5 shall in all events be paid in accordance with the Company’s payroll procedures, expense reimbursement procedures or plan terms, as applicable.

 

(a)        Termination by the Company for Cause or by Executive without Good Reason.  If Executive’s employment hereunder is terminated during the Term by the Company

 

  

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for Cause or by Executive without Good Reason, Executive shall not be entitled to any further compensation or benefits other than the Accrued Benefits.

 

(b)        Termination by the Company without Cause or by Executive With Good Reason.  If Executive’s employment hereunder is terminated during the Term (I) by the Company (A) other than for Cause, and other than due to Executive’s death or “Disability” (as defined below) or (B) as a result of the Company’s non-renewal of the Term, or (II) by Executive with Good Reason, then Executive shall be entitled to (1) the Accrued Benefits and (2) upon Executive’s execution of a general release of claims that is substantially in the form attached hereto as Exhibit A (the “Release”), and the expiration of the applicable revocation period with respect to such Release within sixty (60) days following the date of termination, and provided that Executive does not materially breach the restrictive covenants set forth in Section 6 hereof or in any other agreement between Executive and the Company or to which Executive is a party (including, without limitation, any restricted stock agreement between the Company and Executive (collectively, “Restrictive Covenants”)) or any other ongoing obligation to which Executive is subject as of the date of termination:

 

(i)         an amount equal to the sum of (x) the Base Compensation then in effect and (y) the Target Annual Bonus for the year in which the termination occurs, to be paid in equal installments in accordance with the regular payroll practices of the Company over a 12-month period commencing on the first payroll date following the date of termination, but with the first actual payment to be made on the 60th day following the date of termination, which payment shall consist of all amounts otherwise payable to the Executive pursuant to this subsection (i) between the date of termination and the 60th day following the date of termination;

 

(ii)        an amount equal to (x) the Target Annual Bonus, multiplied by (y) a fraction, the numerator of which is the number of calendar days in such year that Executive was employed hereunder, and the denominator of which is 365 (the “Pro Rata Bonus”), which amount shall be paid in a cash lump sum on the 60th day following the date of termination; provided, however, in the event that Executive becomes a participant in an annual bonus plan adopted by the Company that is intended to comply with Section 162(m) of the Code (the “Bonus Plan”), the amount shall instead be equal to the annual bonus that the Executive would have been entitled to receive pursuant to the terms and conditions of the Bonus Plan had his employment continued through the applicable payment date, multiplied by the fraction set forth in clause (y) above, and payable at such time as bonuses are paid to employees generally pursuant to the Bonus Plan; and

 

(iii)       subject to the applicable terms and conditions of the 2005 Plan and applicable award agreements (but, in each case, only to the extent not inconsistent with this Agreement), continued vesting (and payment) of all outstanding unvested Equity Awards pursuant to their original vesting (and payment) schedules.

 

  

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(c)        Termination in Connection with a Change in Control.  If Executive’s employment hereunder is terminated during the Term (I) by the Company (A) other than for Cause, and other than due to Executive’s death or Disability, or (B) as a result of the Company’s non-renewal of the Term, or (II) by Executive with Good Reason, in any case within 120 days prior to, or within one year following, a “Change in Control” (as such term is defined in the 2005 Plan), provided that no Change in Control shall be deemed to occur unless the relevant transaction constitutes a change in control event under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), then Executive shall be entitled to (i) the Accrued Benefits and (ii) upon Executive’s execution of the Release, and the expiration of the applicable revocation period with respect to such Release within sixty (60) days following the date of termination, and provided that Executive does not materially breach the Restrictive Covenants or any other ongoing obligation to which Executive is subject as of the date of termination:

 

(i)         an amount equal to two times the sum of (a) the Base Compensation then in effect and (b) the Target Annual Bonus for the year in which the termination occurs, to be paid in a lump sum on the 60th day following the date of termination;

 

(ii)        the Pro-Rata Bonus, to be paid in a cash lump sum on the 60th day following the date of termination; and

 

(iii)       notwithstanding anything to the contrary in the 2005 Plan or any applicable award agreement, immediate vesting (and payment) of all outstanding unvested Equity Awards.

 

Notwithstanding the foregoing, in the event that Executive’s termination pursuant to this Section 5(c) occurs within 120 days prior to a Change in Control, to extent required to avoid adverse tax consequences under Section 409A of the Code, Executive shall receive the payments and benefits set forth in Section 5(c)(i) and (iii), respectively, pursuant to the applicable schedules set forth in Sections 5(b)(i) and (iii), respectively.

 

(d)        Termination Due to Death or Disability.  If Executive’s employment hereunder terminates due to death or Disability, then Executive shall be entitled to (i) the Accrued Benefits and (ii) upon Executive’s (or his estate’s) execution of the Release, and the expiration of the applicable revocation period with respect to such Release within sixty (60) days following the date of termination, and provided that Executive does not materially breach the Restrictive Covenants or any other ongoing obligation to which Executive is subject as of the date of termination, a Pro Rata Bonus, to be paid in a cash lump sum on the 60th day following the date of termination.

 

(e)        Welfare Benefit Continuation.  In the event that Executive’s employment hereunder is terminated other than (i) by the Company for Cause or (ii) by Executive without Good Reason, the Company shall reimburse Executive for the full amount of the COBRA premiums incurred by Executive during the 12 month period following the date of such

 

  

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termination, provided that (A) such reimbursement does not result in adverse tax consequences to the Company under Section 105(h) of the Code or otherwise and (B) such reimbursement shall immediately cease in the event that Executive becomes eligible to participate in the health insurance plan of a subsequent employer or other service recipient.

 

(f)         Definitions.  For purposes of this Agreement:

 

“Affiliate” means an affiliate of the Company (or other referenced entity, as the case may be) as defined in Rule 12b-2 promulgated under Section 12 of the Securities Exchange Act of 1934, as amended.

 

“Cause” means (i) commission by the Executive of an act of fraud or dishonesty in connection with his employment, (ii) Executive’s indictment, conviction, or entering a plea of guilty or nolo contendere for the commission of a felony or a crime involving material dishonesty, (iii) Executive’s gross negligence or willful misconduct in connection with Executive’s employment that is materially detrimental to the Company or any Affiliate, (iv) the continued failure by the Executive substantially to perform his duties and obligations to the Company or any Affiliate (other than any such failure resulting from his incapacity due to physical or mental illness), (v) Executive’s commission of any material breach of any of the Restrictive Covenants, or (vi) Executive’s material breach of any reasonable and lawful directive of the Board.  Notwithstanding the foregoing, “Cause” to terminate Executive’s employment shall not exist unless (a) a written notice has first been delivered to Executive by the Board (the “Cure Notice”), which Cure Notice (1) specifically identifies the event(s) the Board believes constitutes Cause and (2) provides 30 days from the date of such Cure Notice for Executive to cure such circumstances (the “Cure Period”) and (b) the Executive has failed to timely cure such circumstances; provided that with respect to clauses (i) and (ii) of this paragraph, the Board shall not be required to deliver a Cure Notice and such termination shall be effective immediately upon the delivery of a Cause Termination Notice.  If (other than in the case of clauses (i) or (ii)) Executive fails to timely cure such circumstances in accordance with the foregoing, the Board may send a Cause Termination Notice to Executive, in which case his employment hereunder shall thereupon be terminated for Cause.  If any Cure Notice (or in the case of clauses (i) or (ii), Cause Termination Notice) to Executive shall not have been delivered by the Board within ninety (90) days following the date the Board becomes aware of the purported existence of a Cause event, or (other than in the case of clauses (i) or (ii)) any Cause Termination Notice to Executive shall not have been delivered by the Board within thirty (30) days following the end of the Cure Period, then any purported termination of Executive’s employment relating to the applicable event shall not be a termination for Cause under this Agreement.

 

For purposes of clarification, if the definition of “Cause” set forth above, and the process associated with it, differs from the definition of cause (or similar term), and the associated process, in any stock incentive plan or agreement of the Company or any of its Affiliates, including the Company’s incentive stock award plan or any other such plan or

 

  

7

  

agreement under which a grant of restricted stock shall be made, the definition and process set forth above shall control.

 

“Disability” means that Executive (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan, or disability plan, covering employees of the company or an Affiliate of the Company.

 

“Good Reason” means the occurrence, without the express prior written consent of Executive, of any of the following events: (i) the failure by the Company to pay the Executive any portion of Executive’s Base Compensation within ten (10) days of the date such compensation is due, (ii) the relocation of Executive’s principal location of employment, to a location outside a twenty (20) mile radius from Stamford, Connecticut, (iii) any material diminution of Executive’s duties, responsibilities or authorities hereunder (provided, however, that the consummation of a transaction whereby Aircastle is no longer publicly held will not by itself constitute such a diminution), (iv) Aircastle being no longer primarily engaged in investing in aviation and/or aviation related assets, including aviation backed debt instruments, (v) prior to the occurrence of a Change on Control (as defined in the 2005 Plan), Executive’s total cash compensation attributable to any calendar year, without regard to whether the bonus in respect of such year is paid prior to the end of such year or at the beginning of the following year, is less than $500,000, (vi) any breach by the Company of any of its material obligations to Executive; (vii) any failure of the Company to obtain the assumption in writing of its obligations under this Agreement by any successor to all or substantially all of its business or assets within 30 days after any reconstruction, amalgamation, combination, merger, consolidation, sale, liquidation, dissolution or similar transaction, unless such assumption occurs by operation of law, or (viii) during either of the two calendar years immediately following a Change in Control, Executive’s total cash compensation attributable to either such calendar year, without regard to whether the bonus in respect of such year is paid prior to the end of such year or at the beginning of the following year, is less than $875,000.  Notwithstanding the foregoing, “Good Reason” to terminate Executive’s employment shall not exist unless (a) a written notice has first been delivered to the Board by Executive (the “Good Reason Notice”), which Good Reason Notice (1) specifically identifies the event(s) Executive believes constitutes Good Reason and (2) provides 30 days from the date of such Good Reason Notice for the Board to cure such circumstances (the “Good Reason Period”) and (b) the Board has failed to timely cure such circumstances.  If the Board fails to timely cure such circumstances in accordance with the foregoing, Executive may send a notice to the Board that he is terminating his employment for Good Reason (“Good Reason Termination Notice”), in which case his employment hereunder shall thereupon be terminated for Good Reason.  If any Good Reason Notice to the Board shall not have been

 

  

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delivered by Executive within ninety (90) days following the date Executive becomes aware of the purported existence of a Good Reason event, or any Good Reason Termination Notice to the Board shall not have been delivered by Executive within thirty (30) days following the end of the Good Reason Period, then any purported termination of Executive’s employment relating to the applicable event shall not be a termination for Good Reason under this Agreement.

 

(g)        Resignation as Officer or Director.  Upon a termination of Executive’s employment hereunder, unless requested otherwise by the Company, Executive shall resign each position (if any) that Executive then holds as an officer of Aircastle or the Company or as an officer or director of any of their Affiliates.

 

(h)        Section 409A.  The intent of the parties is that payments and benefits under this Agreement comply with Section 409A of the Code, to the extent subject thereto, and accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance therewith.  Notwithstanding anything contained herein to the contrary, Executive shall not be considered to have terminated employment with the Company for purposes of any payments under this Agreement which are subject to Section 409A of the Code until the Executive has incurred a “separation from service” from the Company within the meaning of Section 409A of the Code.  Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate identified payment for purposes of Section 409A of the Code.  Without limiting the foregoing and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to this Agreement during the six-month period immediately following an Executive’s separation from service shall instead be paid on the first business day after the date that is six months following the Executive’s separation from service (or, if earlier, the Executive’s date of death).  To the extent required to avoid an accelerated or additional tax under Section 409A of the Code, amounts reimbursable to Executive under this Agreement shall be paid to Executive on or before the last day of the year following the year in which the expense was incurred and the amount of expenses eligible for reimbursement (and in kind benefits provided to Executive) during one year may not affect amounts reimbursable or provided in any subsequent year.  The Company makes no representation that any or all of the payments described in this Agreement will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to any such payment.

 

(i)         No Mitigation.  The Company agrees that, upon termination of Executive’s employment hereunder, Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Company under this Agreement or otherwise.  Further, no payment or benefit provided for in this Agreement or elsewhere shall be reduced by any compensation earned by the Executive as the result of employment by another employer.

 

  

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6.         COVENANTS.  Executive acknowledges that during the period of his employment with the Company or any Affiliate, he shall have access to the Company’s “Confidential Information” (as defined below) and will meet and develop relationships with the Company’s potential and existing suppliers, financing sources, clients, customers and employees.

 

(a)        Noncompetition.

 

(i)         Executive agrees that during the period of his employment with the Company, Executive shall not:  (A) directly or indirectly, engage in, manage, operate, control, supervise, or participate in the management, operation, control or supervision of any business or entity which competes with (any such action individually and in the aggregate, to compete with) the Company or any of its subsidiaries (collectively, the “Aircastle Group”) or serve as an employee, consultant or in any other capacity for such business or entity; (B) have any ownership or financial interest, directly, or indirectly, in any competitor including, without limitation, as an individual, partner, shareholder (other than as a shareholder of a publicly-owned corporation in which the Executive owns less than five percent (5%) of the outstanding shares of such corporation), officer, director, employee, principal, agent or consultant, or (C) serve as a representative of any business organization; any or all of which, without first obtaining written approval of the General Counsel of the Company.  Executive also agrees that as long as he is employed by the Company, he will not undertake the planning or organization of any business activity competitive with the Aircastle Group.  In this regard, Executive acknowledges that the Company’s business, which Executive supports in the performance of his duties and responsibilities, is worldwide in scope, and that, as a result, having a restriction on Executive’s employment which is also worldwide in scope, is a reasonable one.

 

(ii)        Executive agrees that the provisions of Section 6(a)(i) shall continue to apply for six (6) months following the date of termination of Executive’s employment hereunder for any reason, but solely as to businesses and entities that are in the commercial jet aircraft leasing business, or the business of which constitutes a material part of the Company’s business at the time of Executive’s termination.

 

(b)        Solicitation of Employees, Etc.  Executive agrees that during the period of his employment with the Company and for twelve (12) months thereafter, Executive shall not, directly or indirectly, other than in connection with carrying out his duties during the period of his employment with the Company, solicit or induce any of the employees or consultants of the Aircastle Group (or individuals who served as employees or consultants of the Aircastle Group at any time during the preceding nine (9) month period):  (i) to terminate their employment or relationship with the Aircastle Group, and/or (ii) to work for the Executive or any competitor of the Aircastle Group.

 

(c)        Solicitation of Clients, Etc.  Executive agrees that during the period of his employment with the Company and for twelve (12) months thereafter, he will not directly or indirectly, solicit, take away, divert or attempt to divert, the business or patronage of any clients

 

  

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or customers, of the Company, for the purpose of providing services that materially compete with the services provided by the Company at the time of Executive’s termination..  For purposes of this Agreement, “services provided by the Company” includes not only services which the Company then provides and/or markets or sells, but also those which it is in the process of researching and/or developing, at the time of Executive’s termination, and/or as to which, at the time of Executive’s termination, the Company has a strategic business plan in place to research, develop and/or market at some time in the future.  The restrictions on soliciting or providing services to customers of the Company apply to:  (i) any customer or customer contact of the Company with whom Executive has had any business relations during his employment (whether before or after the Effective Date) with the Company; and (ii) any customer or customer contact who was a customer or customer contact of the Company on the date of Executive’s termination from the Company or during the twelve-month period prior to such termination, or who was a prospective customer or customer contact of the Company with whom the Company had actually met with, or had written or telephonic communications with, during said period(s).

 

(d)        Disparaging Comments.  Executive agrees not to make critical, negative or disparaging remarks about the Company or any of its Affiliates, including, but not limited to, comments about any of its assets, services, management, business or employment practices, and not to voluntarily aid or voluntarily assist any person in any way with respect to any third party claims pursued against the Aircastle Group.  The Aircastle Group agrees to instruct its “executive officers” (as defined in Rule 3b-7 under the Securities Exchange Act of 1934, as amended) not to engage in, conduct or make statements or representations that are critical, negative or disparaging with respect to Executive, Executive’s business or Executive’s personal reputation.  If called to provide information to any actual or prospective subsequent employer of Executive, the Company will only disclose those matters covered in public filings, and that Executive’s departure was amicable.  Nothing in this Section 6(d) will prevent Executive or the Company from responding fully and accurately to any question, inquiry or request for information when required by applicable law or legal process.

 

(e)        Confidentiality.  The Company and the Executive acknowledge that:

 

(i)         The Company’s business is highly competitive;

 

(ii)        The essence of that portion of the Company’s business in which the Executive will be involved consists, in large degree, of trade secrets, proprietary or confidential business or financial affairs information, materials, know-how (whether or not in writing), technology, product information, personnel information regarding its employees, and intellectual property belonging to the Company and confidential and proprietary business and client relationships (all of the foregoing will be referred to collectively as “Trade Secrets”), which have been developed at great investment of time and resources by the Aircastle Group so as to engender substantial good will of the Company, all of which are and will be the exclusive property of the Company, protected and kept secret by the Company; and

 

  

11

  

(iii)       Without limiting Executive’s obligations under the foregoing, the Executive agrees that during the period of his employment with the Company and at all times thereafter, Executive shall keep secret and retain in strictest confidence and shall not use for his benefit or the benefit of others, except in connection with the business and affairs of the Company, all confidential information of and confidential matters (whether available in written, electronic form or orally) relating to (A) the Aircastle Group’s pricing and business (including, without limitation, the strategies employed by and the actual investments of any member of the Aircastle Group, the contemplated business strategies and/or investments of any member of the Aircastle Group, the financial performance of any fund managed by any member of the Aircastle Group or any investment thereof, and the identity of the equity investors in the Company or in any of its affiliates), (B) all corporations or other business organizations in which the Aircastle Group has or has had an investment and (C) third parties learned by Executive heretofore or hereafter directly or indirectly in connection with Executive’s employment with the Company or from the Aircastle Group (the “Confidential Information”).  In consideration of, and as a condition to, continued access to Confidential Information and without prejudice to or limitation on any other confidentiality obligation imposed by agreement or law, Executive hereby agrees to undertake to use and protect Confidential Information in accordance with restriction placed on its use or disclosure.  Without limiting the foregoing, Executive shall not disclose such Confidential Information to any director, officer, partner, employee or agent of the Aircastle Group unless in Executive’s reasonable good faith judgment, such person has a need to know such Confidential Information in furtherance of the Aircastle Group’s business, and (except in connection with the business and affairs of the Company) Executive shall not disclose Confidential Information to anyone outside of the Aircastle Group except with the Company’s express written consent.

 

(iv)       Executive acknowledges that the Company’s rights in its Trade Secrets and Confidential Information would be misappropriated should the Executive use or disclose to others the Trade Secrets and/or Confidential Information outside the scope of his employment pursuant to this Agreement.

 

(v)        Executive agrees that during the period of his employment with the Company, Executive shall not directly or indirectly, use, disseminate, or disclose, in whole or in part, any of the Aircastle Group’s Trade Secrets to any person, firm, corporation, association, or other entity for any reason or purpose whatsoever, other than (A) in the regular and proper scope and course of Executive’s employment with Company, or (B) as required by law, provided, however, that Executive will give Company reasonable advance notice of any such disclosure or use that is required by law.

 

(vi)       As used in this Agreement, each of the terms “Trade Secrets” and “Confidential Information” will not include any information that becomes generally known to the public or within the relevant trade or industry unless it becomes known due to Executive’s violation of this Agreement.

 

  

12

  

(f)         Cooperation.  Executive agrees that at all times following the termination of his employment, Executive will cooperate in all reasonable respects with the Company and its Affiliates in connection with any and all existing or future litigation, actions or proceedings (whether civil, criminal, administrative, regulatory or otherwise) brought by or against the Company or any of its Affiliates, to the extent the Company reasonably deems Executive’s cooperation necessary.  Executive shall be reimbursed for all reasonable out-of-pocket expenses incurred by Executive as a result of such cooperation.  With respect to any and all existing or future litigation, actions or proceedings (whether civil, criminal, administrative, regulatory or otherwise) brought against Executive in connection with his employment by the Company, the Company will honor, and proceed in accordance with, its bylaws as in effect from time to time.

 

(g)        No Limitation.  Nothing contained in this Section 6 shall limit any common law or statutory obligation that Executive may have to the Company or any of its Affiliates.  For purposes of all provisions of this Section 6, the “Company” refers to the Company and any incorporated or unincorporated Affiliates of the Company, including any entity which becomes Executive’s employer as a result of any reorganization or restructuring of the Company for any reason.

 

(h)        Acknowledgement.  Executive agrees and acknowledges that each restrictive covenant in this Section 6 is reasonable as to duration, terms and geographical area and that the same protects the legitimate interests of the Company and its Affiliates, imposes no undue hardship on Executive, is not injurious to the public, and that, notwithstanding any provision in this Agreement to the contrary, any violation of this restrictive covenant shall be specifically enforceable in any court of competent jurisdiction.  Executive agrees and acknowledges that a portion of the compensation paid to Executive under this Agreement will be paid in consideration of the covenants contained in this Section 6, the sufficiency of which consideration is hereby acknowledged.  If any provision of this Section 6 as applied to Executive or to any circumstance is adjudged by a court with jurisdiction upon short notice to be invalid or unenforceable, the same shall in no way affect any other circumstance or the validity or enforceability of any other provisions of this Section 6.  If the scope of any such provision, or any part thereof, is too broad to permit enforcement of such provision to its full extent, Executive agrees that the court making such determination shall have the power to reduce the duration and/or area of such provision, and/or to delete specific words or phrases, and in its reduced form, such provision shall then be enforceable and shall be enforced.  Executive agrees and acknowledges that the breach of this Section 6 will cause irreparable injury to the Company and upon breach of any provision of this Section 6, the Company shall be entitled to seek injunctive relief, specific performance or other equitable relief by any court with jurisdiction upon short notice; provided, however, that this shall in no way limit any other remedies which the Company may have (including, without limitation, the right to seek monetary damages).  Each of the covenants in this Section 6 shall be construed as an agreement independent of any other provisions in this Agreement.

 

  

13

  

(i)         No Other Post-Employment Restrictions.  There shall be no contractual, or similar, restrictions on Executive’s post-employment activities, other than those expressly set forth in, or otherwise incorporated into, this Agreement.

 

(j)         Permitted Statements.  Nothing in this Agreement shall restrict either party from making truthful statements (i) when required by law, subpoena, court order or the like; (ii) when requested by a governmental, regulatory, or similar body or entity; or (iii) in confidence to a professional advisor for the purpose of securing professional advice.

 

7.          SECTION 280G.

 

(a)        Notwithstanding anything in this Agreement to the contrary, in the event that any payment or benefit received or to be received by Executive (including any payment or benefit received in connection with a “Change in Control” (as defined in the 2005 Plan) or the termination of Executive’s employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and benefits being hereinafter referred to as the “Total Payments”) would not be deductible (in whole or part) by the Company or any Affiliates making such payment or providing such benefit as a result of Section 280G of the Code, then, to the extent necessary to make such portion of the Total Payments deductible (and after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, arrangement or agreement), the portion of the Total Payments that do not constitute deferred compensation within the meaning of Section 409A of the Code shall first be reduced (if necessary, to zero), and all other Total Payments shall thereafter be reduced (if necessary, to zero), with cash payments being reduced before non-cash payments, and payments to be paid last being reduced first; provided, however, that such reduction shall only be made if (i) the amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments) is greater than or equal to (ii) the amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes on such Total Payments and the amount of the excise tax imposed under Section 4999 of the Code (the “Excise Tax”) on such unreduced Total Payments).

 

(b)        It is possible that, after the determinations and selections made pursuant to Section 7(a) above, Executive will receive 280G Benefits that are, in the aggregate, either more or less than the amount determined under Section 7(a) above (hereafter referred to as an “Excess Payment” or “Underpayment”, as applicable).  If it is established, pursuant to a final determination of a court or an Internal Revenue Service proceeding that has been finally and conclusively resolved, that an Excess Payment has been made, then Executive shall promptly repay the Excess Payment to the Company, together with interest on the Excess Payment at the applicable federal rate (as defined in Section 1274(d) of the Code) from the date of Executive’s receipt of such Excess Payment until the date of such repayment. In the event that it is determined (i) by arbitration pursuant to Section 9(k), (ii) by a court or (iii) by the accounting firm which was, immediately prior to the Change in Control, the Company's independent auditor,

 

  

14

  

upon request of either party, that an Underpayment has occurred, the Company shall promptly pay an amount equal to the Underpayment to Executive (but in any event within ten (10) days of such determination), together with interest on such amount at the applicable federal rate from the date such amount would have been paid to the Executive had the provisions of Section 7(a) not been applied until the date of payment.

 

8.          ASSIGNMENT.  This Agreement, and all of the terms and conditions hereof, shall bind the Company and its successors and assigns and shall bind Executive and Executive’s heirs, executors and administrators.  No transfer or assignment of this Agreement shall release the Company from any obligation to Executive hereunder.  Neither this Agreement, nor any of the Company’s rights or obligations hereunder, may be assigned or otherwise subject to hypothecation by Executive, and any such attempted assignment or hypothecation shall be null and void.  The Company may assign the rights and obligations of the Company hereunder, in whole or in part, to any of the Company’s Affiliates or parent corporations, or to any other successor or assign in connection with the sale of all or substantially all of the Company’s assets or stock or in connection with any merger, acquisition and/or reorganization, provided the assignee assumes the obligations of the Company hereunder.

 

9.          GENERAL.

 

(a)        Notices.  Any notices provided hereunder must be in writing and shall be deemed effective upon the earlier of one (1) business day following personal delivery (including personal delivery by telecopy or telex), or the third (3rd) business day after mailing by first class mail to the recipient at the address indicated below:

 

To the Company:

General Counsel

Aircastle Advisor LLC

300 First Stamford Pl.

5th Floor

Stamford, CT 06902

To Executive:

Ron Wainshal, at the address shown in the Company’s personnel records

with a copy (which shall not constitute notice) to:

Morrison Cohen LLP

909 Third Avenue, 27th Floor

New York, New York  10022

Attn:  Robert M. Sedgwick, Esq.

  

15

  

(212) 735-8833

or to such other address or to the attention of such other person as the recipient party will have specified by prior written notice to the sending party.

 

(b)        Severability.  Any provision of this Agreement which is deemed by a court of competent jurisdiction to be invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction and subject to this paragraph be ineffective to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining provisions hereof in such jurisdiction or rendering that or any other provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction.  If any covenant should be deemed invalid, illegal or unenforceable by a court of competent jurisdiction because its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable.

 

(c)        Entire Agreement.  This document, together with all restrictive covenants in any and all agreements between Executive and the Company or to which Executive is a party (other than any such provisions contained in the Original Agreement) constitute the final, complete, and exclusive embodiment of the entire agreement and understanding between the parties related to the subject matter hereof and except as otherwise explicitly set forth in this Agreement, supersedes and preempts any prior or contemporaneous understandings, agreements, or representations by or between the parties, written or oral, including but not limited to the Original Agreement, which is hereby terminated and superseded in its entirety.

 

(d)        Counterparts.  This Agreement may be executed on separate counterparts, any one (1) of which need not contain signatures of more than one (1) party, but all of which taken together will constitute one and the same agreement.  Signatures delivered by facsimile or “pdf” shall be effective for all purposes.

 

(e)        Amendments.  No amendments or other modifications to this Agreement may be made except by a writing signed by all parties.  No amendment or waiver of this Agreement requires the consent of any individual, partnership, corporation or other entity not a party to this Agreement.  Nothing in this Agreement, express or implied, is intended to confer upon any third person any rights or remedies under or by reason of this Agreement.

 

(f)         Choice of Law.  All questions concerning the construction, validity and interpretation of this Agreement shall be governed by the laws of the State of Connecticut without giving effect to principles of conflicts of law of such state.

 

(g)        Survivorship.  The provisions of this Agreement necessary to carry out the intention of the parties as expressed herein shall survive the termination or expiration of this Agreement.

 

  

16

  

(h)        Waiver.  The waiver by either party of the other party’s prompt and complete performance, or breach or violation, of any provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation, and the failure by any party hereto to exercise any right or remedy which it may possess hereunder shall not operate nor be construed as a bar to the exercise of such right or remedy by such party upon the occurrence of any subsequent breach or violation.  No waiver shall be deemed to have occurred unless set forth in a writing executed by or on behalf of the waiving party.  No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.

 

(i)         Captions.  The captions of this Agreement are for convenience and reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision hereof.

 

(j)         Construction.  The parties acknowledge that this Agreement is the result of arm’s-length negotiations between sophisticated parties, each afforded representation by legal counsel.  Each and every provision of this Agreement shall be construed as though both parties participated equally in the drafting of the same, and any rule of construction that a document shall be construed against the drafting party shall not be applicable to this Agreement.

 

(k)        Arbitration.  Except as necessary for the Company and its Affiliates, successors or assigns or Executive to specifically enforce or enjoin a breach of this Agreement, the parties agree that any and all disputes that may arise between them (“Covered Disputes”) including without limitation disputes arising out of or relating to this Agreement, any other Company Arrangement, Executive’s services on behalf of the Company or any of its Affiliates, or the termination of such services, shall be resolved by binding arbitration in Stamford, Connecticut, under the National Employment Dispute Resolution Rules and procedures of the American Arbitration Association.  The parties agree that each party shall bear its or his own expenses incurred in connection with any such dispute; provided, that, in the event Executive substantially prevails in any such dispute, the Company shall reimburse Executive for the amount of reasonable attorneys’ fees incurred by Executive with respect to such dispute, upon Executive providing the Company with a detailed statement of such fees.  This arbitration obligation extends to any and all claims that may arise by and between the parties and expressly extends to, without limitation, claims or causes of action for wrongful termination, impairment of ability to compete in the open labor market, breach of an express or implied contract, breach of the covenant of good faith and fair dealing, breach of fiduciary duty, fraud, misrepresentation, defamation, slander, infliction of emotional distress, disability, loss of future earnings, and claims under the United States Constitution, and applicable state and federal fair employment laws, federal and state equal employment opportunity laws, and federal and state labor statutes and regulations, including, but not limited to, the Civil Rights Act of 1964, as amended, the Fair Labor Standards Act, as amended, the Americans With Disabilities Act of 1990, as amended, the

 

  

17

  

Rehabilitation Act of 1973, as amended, the Executive Retirement Income Security Act of 1974, as amended, the Age Discrimination in Employment Act of 1967, as amended, and any other state or federal law.  Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

 

10.       REPRESENTATIONS.  Each party represents and warrants that (a) such party is not subject to any contract, arrangement, agreement, policy or understanding, or to any statute, governmental rule or regulation, that in any way limits such party’s ability to enter into and fully perform such party’s obligations under this Agreement; (b) such party is not otherwise unable to enter into and fully perform such party’s obligations under this Agreement; and (c) upon the execution and delivery of this Agreement by both parties, this Agreement shall be such party’s valid and binding obligation, enforceable against such party in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally.

 

11.       INCONSISTENCIES.  In the event of any inconsistency between any provision of this Agreement and any provision of any other Company Arrangement, the provisions of this Agreement shall control to the extent more favorable to Executive unless Executive otherwise agrees in a writing that expressly refers to the provision of this Agreement whose control he is waiving.

 

12.        BENEFICIARIES/REFERENCES.  Executive shall be entitled, to the extent permitted under applicable law, to select and change a beneficiary or beneficiaries to receive any compensation or benefit hereunder following Executive’s death by giving written notice thereof.  In the event of Executive’s death or a judicial determination of his incompetence, references in this Agreement to Executive shall be deemed, where appropriate, to refer to his beneficiary, estate or other legal representative.

 

 [Remainder of page is left blank intentionally]

 

 

  

18

  

IN WITNESS WHEREOF AND INTENDING TO BE LEGALLY BOUND THEREBY, the parties hereto have executed and delivered this Agreement as of the year and date first above written.

 

	  	
AIRCASTLE ADVISOR LLC

	  	  	  
	  	
By:

	/s/ David Walton
	  	
Name:

	David Walton
	  	
Title:

	Chief Operating Officer, General Counsel and Secretary
	  	  	  
	  	
EXECUTIVE

	  	  	  
	  	/s/ Ron Wainshal
	  	
Ron Wainshal

 

 

  

19

  

Schedule 1

 

None.

  

  

  

Exhibit A

 

EXECUTIVE MUST SIGN THIS AGREEMENT

ON OR AFTER HIS LAST DAY OF EMPLOYMENT

 

GENERAL RELEASE OF CLAIMS

 

This Release of Claims (this “Agreement”) is entered into by and between Aircastle Advisor, LLC (the “Company”), and Ron Wainshal (“Executive”) on the below-indicated date.

 

WHEREAS, Executive and the Company entered into an Employment Agreement dated as of January 1, 2010 (the “Employment Agreement”), that provides Executive certain severance and other benefits in the event of certain terminations of Executive’s employment;

 

WHEREAS, Executive’s employment has so terminated; and

 

WHEREAS, pursuant to Sections 5(b), (c) and (d) of the Employment Agreement, a condition precedent to Executive’s entitlement to certain severance and other benefits thereunder is his agreement to this Agreement.

 

NOW, THEREFORE, in consideration of the severance and other benefits provided under the Employment Agreement, the sufficiency of which Executive hereby acknowledges, Executive agrees as follows:

 

	
1.

	
Executive General Release of Claims. Executive, on Executive’s own behalf and on behalf of Executive’s estate, heirs, family members, successors and assigns, hereby voluntarily, knowingly and willfully forever releases and discharges the Company and each of its affiliates, successors, assigns, employees, officers, directors, representatives, shareholders, agents and all persons acting by, through, under or in concert with the Company in both their official and personal capacities (the “Releasees”) from any and all claims, whether or not known, accrued, vested or ripe, that Executive has or may have against the Releasees arising (i) from the beginning of time through the date upon which Executive signs this Agreement, and (ii) from or in any way related to Executive’s employment with the Company or the termination of that employment relationship, including, but not limited to, any such claim for an alleged violation of the following statutes and court-made legal principles:

 

 

	  	
o

	
Title VII of the Civil Rights Act of 1964, as amended;

	 	 	 
	  	
o

	
The Civil Rights Act of 1991;

	 	 	 
	  	
o

	
Any claim arising under the provisions of the False Claims Act, 31 U.S.C.A. § 3730, including, but not limited to, any right to personal gain with respect to any claim asserted under its “qui tam” provisions;

	 	 	 
	  	
o

	
Sections 1981 through 1988 of Title 42 of the United States Code, as amended;

  

  

  

	  	
o

	
The Executive Retirement Income Security Act of 1974, as amended;

	 	 	 
	  	
o

	
The Immigration Reform and Control Act, as amended;

	 	 	 
	  	
o

	
The Americans with Disabilities Act of 1990, as amended;

	 	 	 
	  	
o

	
The Age Discrimination in Employment Act of 1967, as amended;

	 	 	 
	  	
o

	
The Older Workers’ Benefit Protection Act of 1990, as amended;

	 	 	 
	  	
o

	
The Workers Adjustment and Retraining Notification Act, as amended;

	 	 	 
	  	
o

	
The Occupational Safety and Health Act, as amended;

	 	 	 
	  	
o

	
The Connecticut Fair Employment Practices Act;

	 	 	 
	  	
o

	
Connecticut labor laws, as contained in Title 31 of the General Statutes of Connecticut;

	 	 	 
	  	
o

	
any other federal, state or local civil or human rights law or any other local, state or federal law, regulation or ordinance;

	 	 	 
	  	
o

	
any claims arising out of or related to an express or implied employment contract (including, without limitation, the Employment Agreement, or a covenant of good faith and fair dealing;

	 	 	 
	  	
o

	
any public policy, contract, tort, or common law; or

	 	 	 
	  	
o

	
any allegation for costs, fees, or other expenses including attorneys’ fees incurred in these matters.

 

Notwithstanding the foregoing, nothing in this Agreement shall release or waive any rights or claims Executive may have: (i) for indemnification under any written indemnification agreement by and between Executive and the Company and/or under applicable law or the Company’s charter or bylaws; (ii) under any applicable insurance coverage(s) (including but not limited to directors’ and officers’ liability insurance coverage); or (iii) to entitlements, payments and benefits due under Sections 5, 6, 7 or 9(k) of the Employment Agreement and with respect to any accrued and vested benefits under any tax-qualified retirement plans.

 

	
2.

	
Company General Release of Claims. The Company also agrees to waive all known or unknown claims against Executive, but such waiver shall exclude, whether known or unknown: (a) any claims arising out of alleged criminal or fraudulent conduct by Executive in connection with his activities as an employee of the Company and (b) a violation of any securities or other governmental laws, rules or regulations relating to Executive’s duties as an employee of the Company.  Notwithstanding the foregoing, the Company does not release its right to have Executive perform his obligations under this Agreement (including, without limitation, his obligations under Section 5 hereof).

  

  

  

	
3.

	
Affirmations. Executive affirms that he has not filed, caused to be filed, or presently is a party to any claim, complaint, or action against the Company or the other Releasees  in any forum or form.  Executive furthermore affirms that Executive has no known workplace injuries or occupational diseases, and has been provided and has not been denied any leave requested under the Family and Medical Leave Act.  Executive disclaims and waives any right of reinstatement with the Company.

	 	 
	
4.

	
Benefits and COBRA. Except as otherwise provided in this Section 4, effective as of his last day of employment with the Company, Executive will cease all health benefit coverage and other benefit coverage provided by the Company.  Executive acknowledges that the Company has advised Executive of any rights that Executive or his eligible dependants may have under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).

	 	 
	
5.

	
Restrictive Covenants.  Executive and the Company acknowledge and agree that each of the restrictive covenants to which Executive is subject as of the date hereof (including without limitation, the provisions set forth in Section 6 of the Employment Agreement) shall continue to apply in accordance with their terms for the applicable periods with respect thereto.

	 	 
	
6.

	
Public Filings; Press Releases. The Company will disclose the existence and terms of this Agreement, and will file this Agreement with the Securities and Exchange Commission in satisfaction of its reporting obligations under the Securities Exchange Act of 1934, as amended.

	 	 
	
7.

	
Return of Personal Property. Executive has returned to the Company all items of the Company’s property in Executive’s possession.

	 	 
	
8.

	
Notices. All notices, demands, consents or communications required or permitted hereunder shall be in writing. Any notice, demand or other communication given under this Agreement shall be deemed to be given if given in writing (including facsimile or similar transmission) addressed as provided below (or at such other address as the addressee shall have specified by notice actually received by the sender) and if either (a) actually delivered in fully legible form to such address or (b) in the case of a letter, five (5) days shall have elapsed after the same shall have been deposited in the United States mail, with first-class postage prepaid and registered or certified:

 

	  	
To the Company:

	
Aircastle Advisor LLC

	  	  	
300 First Stamford Place

	 	 	Stamford, Connecticut  06902
	  	  	  
	  	
To Executive:

	
Ron Wainshal

	  	  	
At address currently on the Company’s records

	  	  	  
	  	
With a copy to:

	
Morrison Cohen LLP

	  	  	
909 Third Avenue, 27th Floor

  

  

  

	  	  	
New York, NY  10022

	  	  	
Attn:  Robert M. Sedgwick, Esq.

 

	
9.

	
Governing Law and Interpretation. This Agreement shall be governed and controlled by and in accordance with the laws of the State of Connecticut without regard to its conflict of laws provision. In the event Executive or the Company breaches any provision of this Agreement, Executive and the Company affirm that either may institute an action to specifically enforce any term or terms of this Agreement. Venue for any action brought to enforce the terms of this Agreement or for breach thereof shall lie in any court of competent jurisdiction in Stamford, Connecticut. Should any provision of this Agreement be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, excluding the general release language, such provision shall immediately become null and void, leaving the remainder of this Agreement in full force and effect. The Parties affirm that this Agreement is the product of negotiation and agree that it shall not be construed against either Party on the basis of sole authorship.

	 	 
	
10.

	
No Admission of Wrongdoing. The parties agree that neither this Agreement nor the furnishing of the consideration set forth in the Employment Agreement shall be deemed or construed at any time for any purpose as an admission by any party of any liability, wrongdoing or unlawful conduct of any kind.

	 	 
	
11.

	
Amendment. This Agreement may not be modified, altered or changed except upon express written consent of Executive and the Company.

	 	 
	
12.

	
Entire Agreement. This Agreement sets forth the entire agreement between the parties hereto and fully supersedes any prior agreements or understandings between the parties, except with respect to certain provisions of other prior agreements specifically incorporated by reference herein. Each party acknowledges that such party has not relied on any representations, promises, or agreements of any kind made to such party in connection with the other party’s decision to enter into this Agreement, except for those set forth in this Agreement.

	 	 
	
13.

	
Consultation with Attorney; Voluntary Agreement.  Executive acknowledge that (a) the Company has advised Executive of Executive’s right to consult with an attorney of Executive’s own choosing prior to executing this Agreement, (b) Executive has carefully read and fully understands all of the provisions of this Agreement, (c) Executive is entering into this Agreement, including the releases set forth in Section 1, knowingly, freely and voluntarily in exchange for good and valuable consideration and (d) Executive would not be entitled to the benefits described in the applicable sections of the Employment Agreement in the absence of this Agreement.

	 	 
	
14.

	
Revocation.  Executive acknowledges that Executive has been given twenty-one (21) calendar days to consider the terms of this Agreement, although Executive may sign it sooner.  Executive agrees that any modifications, material or otherwise, made to this agreement do not restart or affect in any manner the original twenty-one (21) calendar day consideration period. Executive will have seven (7) calendar days from the date on

  

  

  

	  	
which Executive sign this Agreement to revoke Executive’s consent to the terms of this Agreement.  Such revocation must be in writing and sent via by hand delivery or facsimile to Aircastle Limited, c/o Aircastle Advisor LLC, 300 First Stamford Place, 5th Floor, Stamford, Connecticut  06902, Attention:  General Counsel / Fax: 203-724-2331.    Notice of such revocation must be received within the seven (7) calendar days referenced above.  In the event of such revocation by Executive, this Agreement shall not become effective and Executive shall not have any rights under Sections 5(b), (c) or (d) of the Employment Agreement.  Provided that Executive does not revoke this Agreement within such seven-day period, this Agreement shall become effective on the eighth calendar day after the date on which Executive signs this Agreement.

 

 

IN WITNESS WHEREOF, Executive knowingly and voluntarily executed this Agreement as of the below-written date

 

 

EXECUTIVE

 

	
By:

	  	  	  
	  	  	  	
Date

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