Document:

Fifth Supplemental Indenture

 Exhibit 4(b) 
 CLIFFS NATURAL RESOURCES INC. 
 Fifth Supplemental Indenture

 Dated as of March 31, 2011 
 U.S. BANK NATIONAL ASSOCIATION, 
 as Trustee 

 
  

 

 TABLE OF CONTENTS 

 

							
	 	    	 	  	Page	 
	ARTICLE 1	  
	 NATURE OF AMENDMENT
	   

			
	 Section 1.01.
	    	Scope of Supplemental Indenture; General	  	 	2	  
	
	ARTICLE 2	  
	AMENDMENT	  
			
	 Section 2.01.
	    	Amendment to First Supplemental Indenture	  	 	2	  
	 Section 2.02.
	    	Amendment to Second Supplemental Indenture	  	 	2	  
	 Section 2.03.
	    	Amendment to Third Supplemental Indenture	  	 	3	  
	
	ARTICLE 3	  
	EFFECTIVENESS	  
			
	 Section 3.01.
	    	Effectiveness of Fifth Supplemental Indenture	  	 	3	  
	
	ARTICLE 4	  
	MISCELLANEOUS	  
			
	 Section 4.01.
	    	Governing Law	  	 	4	  
	 Section 4.02.
	    	Capitalized Terms	  	 	4	  
	 Section 4.03.
	    	Recitals	  	 	4	  

  
 -i-

 FIFTH SUPPLEMENTAL INDENTURE 

Fifth Supplemental Indenture, dated as of March 31, 2011 (“Fifth Supplemental Indenture”), to the
Prior Supplemental Indentures (as defined below), is by and between CLIFFS NATURAL RESOURCES INC., an Ohio corporation (the “Company”), and U.S. BANK NATIONAL ASSOCIATION, as trustee (the “Trustee”).

 RECITALS: 
 WHEREAS, the Company and the Trustee have heretofore executed and delivered an Indenture, dated as of March 17, 2010 (as amended, supplemented, waived or otherwise modified, the “Base
Indenture”); 
 WHEREAS, the Company and the Trustee have heretofore executed and delivered a first
supplemental indenture, dated as of March 17, 2010 (the “First Supplemental Indenture”), to the Base Indenture, pursuant to which the Company has issued $400,000,000 initial aggregate principal amount of the Company’s
5.900% Notes due 2020 (the “5.900% Notes due 2020”); 
 WHEREAS, the Company and the Trustee
have heretofore executed and delivered a second supplemental indenture, dated as of September 20, 2010 (the “Second Supplemental Indenture”), to the Base Indenture, pursuant to which the Company has issued $500,000,000 initial
aggregate principal amount of the Company’s 4.80% Notes due 2020 (the “4.80% Notes due 2020”); 
 WHEREAS, the Company and the Trustee have heretofore executed and delivered a third supplemental indenture, dated as of September 20, 2010 (the “Third Supplemental Indenture” and,
collectively with the First Supplemental Indenture and the Second Supplemental Indenture, the “Prior Supplemental Indentures”), to the Base Indenture, pursuant to which the Company has issued $500,000,000 initial aggregate principal
amount of the Company’s 6.25% Notes due 2040 (the “6.25% Notes due 2040” and, collectively with the 5.900% Notes due 2020 and the 4.80% Notes due 2020, the “Notes”); 

WHEREAS, Section 9.1(a) of the Base Indenture provides that the Company and the Trustee, as applicable, may amend or
supplement certain of the provisions of the Base Indenture or the Securities without the consent of the Holders to cure any ambiguity, defect or inconsistency; 
 WHEREAS, the Company desires to cure an ambiguity, defect or inconsistency in each of the Prior Supplemental Indentures; 

WHEREAS, the consent of any Holder is not required to effect the amendments set forth herein; 

WHEREAS, the execution of this Fifth Supplemental Indenture by the parties hereto is in all respects authorized by the
provisions of the Base Indenture and all acts and requirements necessary to make this Fifth Supplemental Indenture a valid agreement of the Company and the Trustee, in accordance with its terms, have been done; 

NOW, THEREFORE, THIS FIFTH SUPPLEMENTAL INDENTURE WITNESSETH: in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the Company and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes, that the Prior Supplemental Indentures are supplemented and
amended, to the extent expressed herein, as follows: 

 ARTICLE 1 
 NATURE OF AMENDMENT 

Section 1.01.    Scope of Supplemental Indenture; General. 

This Fifth Supplemental Indenture supplements and, to the extent inconsistent therewith, replaces the provisions of the
Prior Supplemental Indentures, respectively, to which provisions reference is hereby made. 
 The changes,
modifications and supplements to the Prior Supplemental Indentures effected by this Fifth Supplemental Indenture shall be applicable only with respect to, and govern the terms of, the 5.900% Notes due 2020, the 4.80% Notes due 2020 and the 6.25%
Notes due 2040, as applicable, and shall not apply to any other Securities that have been or may be issued under the Base Indenture unless a supplemental indenture with respect to such other Securities specifically incorporates such changes,
modifications and supplements. 
 ARTICLE 2 
 AMENDMENT 

Section 2.01.    Amendment to First Supplemental Indenture. 

Section 5.01 of the First Supplemental Indenture is hereby deleted in its entirety and replaced with the following:

 “Section 5.01. Optional Redemption. The Notes will be redeemable,
at the option of the Company, at any time and from time to time, in whole or in part, on not less than 30 nor more than 60 days’ prior notice mailed to the Holders of the Notes, with a copy provided to the Trustee. The Notes will be redeemable
at a redemption price, to be calculated by the Company, plus accrued and unpaid interest to the date of redemption, equal to the greater of: 

(a) 100% of the principal amount of the Notes being redeemed; and 

(b) the sum of the present values of the remaining scheduled payments of principal and
interest on the Notes to be redeemed (not including interest accrued to the date of redemption), discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 35 basis
points. 
 In the case of any ambiguity, defect or inconsistency between this
Section 5.01 and the Notes, this Section 5.01 shall control.” 

Section 2.02.    Amendment to Second Supplemental Indenture. 

Section 5.01 of the Second Supplemental Indenture is hereby deleted in its entirety and replaced with the following:

 “Section 5.01. Optional Redemption. The 2020 Notes will be
redeemable, at the option of the Company, at any time and from time to time, in whole or in part, on not less 

  
 2 

 
than 30 nor more than 60 days’ prior notice mailed to the Holders of the 2020 Notes, with a copy provided to the Trustee. The 2020 Notes will be redeemable at a redemption price, to be
calculated by the Company, plus accrued and unpaid interest to the date of redemption, equal to the greater of: 
 (a) 100% of the principal amount of the 2020 Notes being redeemed; and 
 (b) the sum of the present values of the remaining scheduled payments of principal and interest on the 2020 Notes to be redeemed (not including interest accrued to the date of redemption), discounted to
the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 35 basis points. 

In the case of any ambiguity, defect or inconsistency between this Section 5.01 and
the 2020 Notes, this Section 5.01 shall control.” 

Section 2.03.    Amendment to Third Supplemental Indenture. 

Section 5.01 of the Third Supplemental Indenture is hereby deleted in its entirety and replaced with the following:

 “Section 5.01. Optional Redemption. The 2040 Notes will be
redeemable, at the option of the Company, at any time and from time to time, in whole or in part, on not less than 30 nor more than 60 days’ prior notice mailed to the Holders of the 2040 Notes, with a copy provided to the Trustee. The 2040
Notes will be redeemable at a redemption price, to be calculated by the Company, plus accrued and unpaid interest to the date of redemption, equal to the greater of: 

(a) 100% of the principal amount of the 2040 Notes being redeemed; and 

(b) the sum of the present values of the remaining scheduled payments of principal and
interest on the 2040 Notes to be redeemed (not including interest accrued to the date of redemption), discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 40
basis points. 
 In the case of any ambiguity, defect or inconsistency between
this Section 5.01 and the 2040 Notes, this Section 5.01 shall control.” 
 ARTICLE 3 

EFFECTIVENESS 
 
Section 3.01.    Effectiveness of Fifth Supplemental Indenture. 
 This
Fifth Supplemental Indenture shall become effective immediately upon its execution and delivery by the Company and the Trustee. 

  
 3 

 ARTICLE 4 
 MISCELLANEOUS 

Section 4.01.    Governing Law. 

THIS FIFTH SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE
OF NEW YORK, WITHOUT GIVING EFFECT TO ITS PRINCIPLES OF CONFLICTS OF LAW. 

Section 4.02.    Capitalized Terms. 

Except with respect to the capitalized terms used in the amendments to Section 5.01 of the First Supplemental
Indenture, the Second Supplemental Indenture and the Third Supplemental Indenture, respectively, capitalized terms used but not defined herein have the meanings ascribed to such terms in the Base Indenture. 

Section 4.03.    Recitals. 

The recitals contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility
for their correctness. 

  
 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Fifth Supplemental
Indenture to be duly executed, all as of the date first above written. 
  

					
	CLIFFS NATURAL RESOURCES INC.
		
	By:  	 	 /s/ Laurie Brlas

		 	 Name:
	  	 Laurie Brlas

		 	 Title:
	  	Executive Vice President, Finance and Administration & Chief Financial Officer

 

					
	 U.S. BANK NATIONAL ASSOCIATION,
     as Trustee

		
	By:  	 	         /s/ Elizabeth A. Thuning

		 	 Name:
	 	 Elizabeth A. Thuning

		 	 Title:
	 	 Vice PresidentForm of Participant Grant under 2007 Incentive Equity Plan, as Amended

 Exhibit 10(a) 
 FORM OF 
 CLIFFS NATURAL RESOURCES INC. 

20     PARTICIPANT GRANT 
 UNDER THE 
 AMENDED AND RESTATED CLIFFS 

2007 INCENTIVE EQUITY PLAN, AS AMENDED 
 Effective                     , 20    (“Date of Grant”), the
Compensation and Organization Committee (“Committee”) of the Board of Directors of Cliffs Natural Resources Inc. (“Company”) hereby grants to
                    (“Participant”), an employee of the Company or of a Subsidiary of the
Company,                                       
 (                    ) Performance Shares and an additional
                                        ( 
                   ) Restricted Share Units covering the incentive period commencing January 1, 20     and ending
December 31, 20     (“Incentive Period”) under the Amended and Restated Cliffs 2007 Incentive Equity Plan, as amended (“Plan”) of the Company. 

Such Grant shall be subject to the Terms and Conditions of the 20     Participant Grants under the
Amended and Restated Cliffs 2007 Incentive Equity Plan approved by the Committee at its             , 20     meeting (“Terms and Conditions”) and
provided to the Participant. 
  

			
	CLIFFS NATURAL RESOURCES INC. (“Company”)	 	
	  	 	 
	 Joseph A. Carrabba
 Chairman,
President & CEO
	 	

 The undersigned Participant hereby acknowledges receipt of the Terms and Conditions,
hereby declares that he has read the Terms and Conditions, agrees to the Terms and Conditions, and accepts the Performance Shares and Restricted Share Units granted hereunder subject to the Terms and Conditions and the Plan. 

 

			
		
	  	 	 
	Participant	 	

 Return a signed copy of this 20     Participant Grant to the Company
indicating receipt and acceptance of the 20     Participant Grant and the Terms and Conditions of the 20     Participant Grants under the Amended and Restated Cliffs 2007 Incentive Equity Plan.

  
 1 

 CLIFFS NATURAL RESOURCES INC. 

THE TERMS AND CONDITIONS OF 

THE 20     PARTICIPANT GRANTS 
 UNDER THE 
 AMENDED AND RESTATED CLIFFS 2007 INCENTIVE EQUITY PLAN 

The Compensation and Organization Committee of the Board of Directors of Cliffs Natural Resources Inc. hereby establishes the Terms
and Conditions of the 20     Participant Grants (“Grants” or individually “Grant”) under the Amended and Restated Cliffs 2007 Incentive Equity Plan (“Plan”) as follows: 

ARTICLE 1. 
 Definitions

 All terms used herein with initial capital letters shall have the meanings assigned to them in a Grant or the
Plan and the following additional terms, when used herein with initial capital letters, shall have the following meanings: 
 1.1        “Free Cash Flow” shall mean the Company’s cash from operations minus its capital expenditures from the Company’s consolidated cash flow
statement as more particularly described on the attached Exhibit D. 

1.2        “Market Value Price” shall mean the latest available closing
price of a Share of the Company and the latest available closing price per share of a common share of each of the entities in the Peer Group, as the case may be, on the New York Stock Exchange or other recognized market if the stock does not trade
on the New York Stock Exchange at the relevant time. 
 1.3        “Peer
Group” shall mean the group of companies, as more particularly set forth on attached Exhibit A, against which the Relative Total Shareholder Return of the Company is measured over the Incentive Period. 

1.4        “Performance Objectives” shall mean for the Incentive Period
the predetermined objectives of the Company of the Relative Total Shareholder Return and Free Cash Flow goals established by the Committee and reported to the Board, as more particularly set forth on attached Exhibit B. 

 1.5        “Performance Shares
Earned” shall mean the number of Shares of the Company (or cash equivalent) earned by a Participant following the conclusion of an Incentive Period in which one or more of Company Performance Objectives was met at the “Threshold”
level or a higher level, as determined under Section 2.3. 

1.6        “Relative Total Shareholder Return” shall mean for the
Incentive Period the Total Shareholder Return of the Company compared to the Total Shareholder Return of the Peer Group, as more particularly set forth on attached Exhibit C. 

1.7        “Share Ownership Guidelines” shall mean the Cliffs Natural
Resources Inc. Directors’ and Officers’ Share Ownership Guidelines, as amended from time to time. 

1.8        “Total Shareholder Return” shall mean for the Incentive Period
the cumulative return to shareholders of the Company and to the shareholders of each of the entities in the Peer Group during the Incentive Period, measured by the change in Market Value Price per share of a Share of the Company plus dividends (or
other distributions, excluding franking credits) reinvested over the Incentive Period and the change in the Market Value Price per share of the common share of each of the entities in the Peer Group plus dividends (or other distributions, excluding
franking credits) reinvested over the Incentive Period, determined on the last business day of the Incentive Period compared to a base measured by the average Market Value Price per share of a Share of the Company and of a common share of each of
the entities in the Peer Group on the last business day of the year immediately preceding the Incentive Period. Dividends (or other distributions, excluding franking credits) per share are assumed to be reinvested in the applicable stock on the last
business day of the quarter during which they are paid at the then Market Value Price per share, resulting in a fractionally higher number of shares owned at the market price. 
 ARTICLE 2. 
 Grant and Terms of Performance Shares 

2.1        Grant of Performance Shares. Pursuant to the Plan, the Company, by
action of the Committee, has granted to the Participant the number of Performance Shares as specified in the Grant, without dividend equivalents, effective as of the Date of Grant. 

 2.2        Issuance of Performance
Shares. The Performance Shares covered by the Grant and these Terms and Conditions shall only result in the issuance of Shares (or cash or a combination of Shares and cash, as decided by the Committee in its sole discretion), if at all, only
after the completion of the Incentive Period and only if such Performance Shares are earned as provided in Section 2.3 of this Article 2. 
 2.3        Performance Shares Earned. Performance Shares Earned, if any, shall be based upon the degree of achievement of the Company Performance Objectives,
all as more particularly set forth in Exhibit B, with actual Performance Shares Earned interpolated between the performance levels shown on Exhibit B, as determined and certified by the Committee as of the end of the Incentive Period. In no event,
shall any Performance Shares be earned with respect to achievement by the Company in excess of the allowable maximum as established under the Performance Objectives. 

2.4        Calculation of Payout of Performance Shares. The Performance
Shares granted shall be earned as Performance Shares Earned based on the degree of achievement of the Performance Objectives established for the Incentive Period. The percentage level of achievement determined for each Performance Objective shall be
multiplied by the number of Performance Shares granted to determine the actual number of Performance Shares Earned. The calculation as to whether the Company has met or exceeded the Company Performance Objectives shall be determined and certified by
the Committee in accordance with the Grant and these Terms and Conditions. 

2.5        Payment of Performance Shares. 

(a)        The Payment of Performance Shares Earned shall be made in the form of Shares
(or cash or a combination of Shares and cash, as decided by the Committee in its sole discretion), and shall be paid after the determination and certification by the Committee of the level of attainment of the Company Performance Objectives (the
calculation of which shall have been previously reviewed by an independent accounting professional), but in any event no later than 2-1/2 months after the end of the Incentive Period, unless the date of payment is deferred by the Participant
pursuant to, and in compliance with, the terms of the Company’s Voluntary Non-Qualified Deferred Compensation Plan. In the event that all or any portion of the Performance Shares Earned shall be paid in cash, the cash equivalent of one
Performance Share Earned shall be equal to the Fair Market Value of the one share of common stock of 

 
the Company on the last trading day of the calendar year in which the Performance Period ends. Notwithstanding the foregoing, no Performance Shares granted hereunder, may be paid in cash in lieu
of Shares to any Participant who is subject to the Share Ownership Guidelines unless and until such Participant is either in compliance with, or no longer subject to, such Share Ownership Guidelines, provided, however, that the Committee may
withhold Shares to the extent necessary to satisfy federal, state, local or foreign income tax withholding requirements, as described in Section 5.2. In addition, the Committee may restrict 50% of the Shares to be issued in satisfaction of the
total Performance Shares Earned, before income tax withholding, so that they cannot be sold by Participant unless immediately after such sale the Participant is in compliance with the Share Ownership Guidelines that are applicable to the Participant
at the time of sale. 
 (b)        Any payment of Performance Shares Earned to a
deceased Participant shall be paid to the beneficiary designated by the Participant on the Designation of Death Beneficiary attached as Exhibit E and filed with the Company. If no such beneficiary has been designated or survives the Participant,
payment shall be made to the estate of a Participant. A beneficiary designation may be changed or revoked by a Participant at any time, provided the change or revocation is filed with the Company. 

(c)        Prior to payment, the Company shall only have an unfunded and unsecured
obligation to make payment of Performance Shares Earned to the Participant. The Performance Shares covered by the Grant and these Terms and Conditions that have not yet been earned as Performance Shares Earned, and any interests of the Participant
with respect thereto, are not transferable other than by completion of the Designation of Death Beneficiary attached as Exhibit E or pursuant to the laws of descent and distribution. 

2.6        Death, Disability, Retirement, or Other. 

(a)        With respect to Performance Shares granted to a Participant whose employment is
terminated because of the Participant’s death, Disability, Retirement, or who is terminated by the Company without Cause, the Participant (or the Participant’s beneficiary in the case of death) shall receive at the time specified in
Section 2.5(a) as Performance Shares Earned the number of Performance Shares as is determined after the end of the Incentive Period under Sections 2.3 and 2.4, prorated based 

 
upon the number of full months between January 1, 20     and the date the Participant ceased to be employed by the Company compared to the thirty-six
(36) months in the Incentive Period. 
 (b)        In the event a
Participant voluntarily terminates employment prior to December 31, 20     or is terminated by the Company with Cause prior to the date of payment of Performance Shares Earned, the Participant shall forfeit all right
to any Performance Shares that would have been earned under the Grant and these Terms and Conditions. 
 ARTICLE 3. 

Grant and Terms of Restricted Share Units 
 3.1        Grant of Restricted Share Units. Pursuant to the Plan, the Company has granted to the Participant the number of Restricted Share Units as specified
in the Grant, without dividend equivalents, effective as of the Date of Grant. 

3.2        Condition of Payment. The Restricted Share Units covered by the
Grant and these Terms and Conditions shall only result in the payment in Shares of the Company equal in number to the Restricted Share Units if the Participant remains in the employ of the Company or a Subsidiary throughout the Incentive Period.

 3.3        Payment of Restricted Share Units. 

(a)        Payment of Restricted Share Units shall be made in the form of Shares and shall
be paid at the same time as the payment of Performance Shares Earned pursuant to Section 2.5(a), provided, however, in the event no Performance Shares are earned, then the Restricted Share Units shall be paid in Shares at the time
the Performance Shares would normally have been paid. The Committee may restrict 50% of the Shares to be issued in satisfaction of the total Restricted Share Units, before income tax withholding, so that they cannot be sold by Participant unless
immediately after such sale the Participant is in compliance with the Share Ownership Guidelines that are applicable to the Participant at the time of sale. 
 (b)        Any payment of Restricted Share Units to a deceased Participant shall be paid to the beneficiary designated by the Participant on the Designation of Death
Beneficiary attached as Exhibit E and filed with the Company. If no such beneficiary has been designated or survives the Participant, 

 
payment shall be made to the estate of a Participant. A beneficiary designation may be changed or revoked by a Participant at any time, provided the change or revocation is filed with the
Company. 
 (c)        Prior to payment, the Company shall only have an unfunded
and unsecured obligation to make payment of Restricted Share Units to the Participant. The Restricted Share Units covered by the Grant and these Terms and Conditions that have not yet been earned, and any interests of the Participant with respect
thereto, are not transferable other than by completion of the Designation of Death Beneficiary attached as Exhibit E or pursuant to the laws of descent and distribution. 

3.4        Death, Disability, Retirement or Other. With respect to Restricted
Share Units granted to a Participant whose employment is terminated because of the Participant’s death, Disability, Retirement, or who is terminated by the Company without Cause during the Incentive Period, the Participant (or the
Participant’s Beneficiary in the case of death) shall receive at the time specified in Section 3.3(a) the number of Shares as calculated in Section 3.2, prorated based upon the number of full months between January 1,
20     and the date the Participant ceased to be employed by the Company compared to the thirty-six (36) months in the Incentive Period. 
 ARTICLE 4. 
 Other Terms Common to Restricted Share Units and Performance Shares

 4.1        Forfeiture. 

(a)        A Participant shall not render services for any organization or engage directly
or indirectly in any business which is a competitor of the Company or any affiliate of the Company, or which organization or business is or plans to become prejudicial to or in conflict with the business interests of the Company or any affiliate of
the Company. 
 (b)        Failure to comply with subsection (a) above will
cause a Participant to forfeit the right to Performance Shares and Restricted Share Units and require the Participant to reimburse the Company for the taxable income received or deferred on Performance Shares that become payable to the Participant
and on Restricted Share Units that have been paid out in Shares within the 90-day period preceding the Participant’s termination of employment. 
 (c)        Failure of the Participant to repay to the Company the amount to be reimbursed in subsection (b) above within three days of termination of employment will
result in the offset of said 

 
amount from the Participant’s account balance in the Company’s Voluntary Non-Qualified Deferred Compensation Plan, if applicable (at the time that the amounts owed under the Voluntary
Non-Qualified Deferred Compensation Plan are scheduled for payment), and/or from any accrued salary or vacation pay owed at the date of termination of employment or from future earnings payable by the Participant’s next employer. If applicable,
such offset shall be deemed to constitute the payment due to him under the Voluntary Non-Qualified Deferred Compensation Plan in accordance with the time and form of payment specified under the Voluntary Non-Qualified Deferred Compensation Plan and
the immediate repayment to the Company of the amounts owed under these Terms and Conditions. 

4.2        Change in Control. In the event a Change in Control (as defined in
the Plan) occurs, all Performance Shares granted to a Participant for Incentive Periods which have not ended before the Change in Control shall, notwithstanding any preceding provisions of these Terms and Conditions to the contrary, immediately
become Performance Shares Earned on a one-to-one basis regardless of the Performance Objectives. All Performance Shares, if any, granted to a Participant for an Incentive Period which ended before the Change in Control, and which have not been paid
in accordance with Section 2.5, will be deemed to be Performance Shares Earned to the extent and only to the extent that they became Performance Shares Earned as of the end of the Incentive Period based upon the Performance Objectives for the
Incentive Period. The value of all Performance Shares Earned, including ones for Incentive Periods which have already ended, shall be paid in cash based on the Fair Market Value of the Shares determined on the date the Change in Control occurs.
Also, in the event of a Change in Control, all Restricted Share Units granted for all periods shall become nonforfeitable and shall be paid in cash based on the Fair Market Value of an equivalent number of Shares determined on the date the Change in
Control occurs. All payments with respect to Performance Shares and Restricted Share Units shall be made within 10 days of the Change in Control. 
 ARTICLE 5. 
 General Provisions 

5.1        Compliance with Law. The Company shall make reasonable efforts to
comply with all applicable federal and state securities laws; provided, however, notwithstanding any other provision of the Grant and these Terms and Conditions, the Company shall not be obligated to issue any Shares pursuant

 
to the Grant and these Terms and Conditions if the issuance or payment thereof would result in a violation of any such law; provided, however, that the Shares will be issued at the
earliest date at which the Company reasonably anticipates that the issuance of the Shares will not cause such violation. 

5.2        Withholding Taxes. To the extent that the Company is required to
withhold federal, state, local or foreign taxes in connection with any payment of Performance Shares Earned or Restricted Share Units to a Participant under the Plan, the Company shall withhold the minimum amount of taxes which it determines it is
required by law or required by the terms of the Plan to withhold in connection with any recognition of income incident to this Plan payable in cash or Shares to a Participant or beneficiary. In the event of a taxable event occurring with regard to
Shares on or after the date that the Shares become nonforfeitable, the Company shall reduce the Shares owed to the Participant or beneficiary by the fewest number of such Shares owed to the Participant or beneficiary such that the Fair Market Value
of such Shares shall equal (or exceed by not more than the Fair Market Value of a single Share) the Participant’s or other person’s “Minimum Withholding Tax Liability” resulting from such recognition of income. The Company shall
pay cash equal to such Fair Market Value to the appropriate taxing authority for purposes of satisfying such withholding responsibility. If a distribution or other event does not result in any withholding tax liability as a result of the
Participant’s election to be taxed at an earlier date or for any other reason, the Company shall not reduce the Shares owed to the Participant or beneficiary. For purposes of this paragraph, a person’s “Minimum Withholding Tax
Liability” is the product of: (a) the aggregate minimum applicable federal and applicable state and local income withholding tax rates on the date of a recognition of income incident to the Plan; and (b) the Fair Market Value of the
Shares recognized as income to the Participant or other person determined as of the date of recognition of income, or other taxable amount under applicable statutes.  

5.3        Continuous Employment. For purposes of the Grant and these Terms
and Conditions, the continuous employment of the Participant with the Company shall not be deemed to have been interrupted, and the Participant shall not be deemed to have ceased to be an employee of the Company, by reason of the transfer of his
employment among the Company and its Subsidiaries or an approved leave of absence. 

 5.4        Relation to Other
Benefits. Any economic or other benefit to the Participant under the Grant and these Terms and Conditions or the Plan shall not be taken into account in determining any benefits to which the Participant may be entitled under any
profit-sharing, retirement or other benefit or compensation plan maintained by the Company or a Subsidiary and shall not affect the amount of any life insurance coverage available to any beneficiary under any life insurance plan covering employees
of the Company or a Subsidiary. 
 5.5        These Terms and Conditions
Subject to Plan. The Restricted Share Units and Performance Shares granted under the Grant and these Terms and Conditions and all of the terms and conditions hereof are subject to all of the terms and conditions of the Plan, a copy of which
is available upon request. 
 5.6        Amendments. The Plan, the
Grant and these Terms and Conditions can be amended at any time by the Company. Any amendment to the Plan shall be deemed to be an amendment to the Grant and these Terms and Conditions to the extent that the amendment is applicable hereto. Except
for amendments necessary to bring the Plan, the Grant and these Terms and Conditions into compliance with current law including Internal Revenue Code Section 409A, no amendment to either the Plan, the Grant or these Terms and Conditions shall
adversely affect the rights of the Participant under the Grant and the Grant and these Terms and Conditions without the Participant’s consent. 
 5.8        Severability. In the event that one or more of the provisions of the Grant and these Terms and Conditions shall be invalidated for any reason by a
court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable. 

5.9        Governing Law. The Grant and these Terms and Conditions shall be
construed and governed in accordance with the laws of the State of Ohio. 
 These Terms and Conditions are hereby adopted
this      day of                     , 20     by the members of the Compensation and
Organization Committee of the Board of Directors of Cliffs Natural Resources Inc. 
  

			
	
                         
                  
	 	
	
                         
                  
	 	
	
                         
                  
	 	
	
                         
                  
	 	

 EXHIBITS 

 

			
	 Exhibit A
	    	 Peer Group

	 Exhibit B
	    	 Performance Objectives

	 Exhibit C
	    	 Relative Total Shareholder Return

	 Exhibit D
	    	 Free Cash Flow

	 Exhibit E
	    	 Beneficiary Designation

 Exhibit A 
 PEER GROUP 
 (20     - 20    )

 The Peer Group will be the constituents as defined by the S&P 500 Metals and Mining ETF Index on the last day of trading of the
Incentive Period. Any constituent that underwent a restructuring or similar structural change or event resulting in a significant distortion of performance results for the Incentive Period will be excluded from the Peer Group. 

The value of the stock of a Peer Group company will be determined in accordance with the following: 

 

	 	1.	 If the stock is listed on an exchange in the U.S. or Canada, then the value on such exchange will be used; 

 

	 	2.	 Otherwise, if the stock is traded in the U.S. as an American Depositary Receipt, then the value of the ADR will be used; or 

 

	 	3.	 Otherwise, the value on the exchange in the country where the company is headquartered will be used. 

 Exhibit B 
 PERFORMANCE OBJECTIVES 
 (20     -
20    ) 
 The target objectives of the Company are Relative Total Shareholder Return (share price plus
reinvested dividends) and Free Cash Flow over the three-year Incentive Period from January 1, 20     to December 31, 20    . Achievement of the Relative Total Shareholder Return
objective shall be determined by the shareholder return of the Company relative to a predetermined group of steel, mining and metal companies. Achievement of the Free Cash Flow objective shall be determined against a scale set forth in the Table
Below: 
  

									
	 Performance

Factor
	  	Weight	  	Threshold	  	Target	  	Maximum
					
	 Relative TSR
	  	50%	  	35th %tile	  	55th %tile	  	75th %tile
					
	 Payout For
 Relative TSR
	  		  	25%	  	50%	  	100%
					
	 3- Year
 Cumulative

Free Cash
 Flow ($000s)

Payout For
 Free Cash

Flow
	  	50%	  	$            	  	$            	  	$            
	  		  	25%	  	50%	  	100%
					
	 Total Payout If
 Achieve Level

For Both
 Performance Factors
	  		  	50%	  	100%	  	200%

 Exhibit C 
 RELATIVE TOTAL SHAREHOLDER RETURN 
 (20     -
20    ) 
 Relative Total Shareholder Return for the Incentive Period is calculated as follows: 

 

	 	1.	 The Total Shareholder Return as defined in Section 1.9 of these Terms and Conditions for the Incentive Period for the Company shall be compared to the
Total Shareholder Return for each of the entities within the Peer Group for the Incentive Period. The results shall be ranked to determine the Company’s Relative Total Shareholder Return percentile ranking compared to the Peer Group.

  

	 	2.	 The Company’s Relative Total Shareholder Return for the Incentive Period shall be compared to the Relative Total Shareholder Return Performance target
range established for the Incentive Period. 

  

	 	3.	 The Relative Total Shareholder Return performance target range has been established for the 20__-20     Incentive Period as
follows: 

  

			
		 	20     - 20    
		 	Relative Total Shareholder Return
	 Performance Level
	 	Percentile Ranking
		
	 Maximum
	 	75th Percentile
	 Target
	 	55th Percentile
	 Threshold
	 	35th Percentile

 Exhibit D 
 FREE CASH FLOW 
 (20     -20    )

 Free Cash Flow is calculated as follows: 
  

	 	1.	 Each year during the Incentive Period, the Cash from Operations from the Company’s consolidated cash flow statement. 

 

	 	2.	 Each year during the Incentive Period, the Net Capital Expenditures from the Company’s consolidated cash flow statement shall be subtracted from the
Company’s Cash from Operations. 

  

	 	3.	 The amounts determined in paragraph 2 above for each year during the Incentive Period shall be added together to determine the Cumulative Free Cash Flow of
the Company during the Incentive Period. 

 The Cumulative Free Cash Flow shall be adjusted by the Committee, if
necessary, to eliminate or review the impact of acquisitions and dispositions, non-operational businesses, significant expansions and other unusual items. 

 GRANT YEAR 20     

Exhibit E 
 BENEFICIARY
DESIGNATION 
 In accordance with the terms and conditions of the Amended and Restated Cliffs 2007 Incentive Equity
Plan (“Plan”), my 20     Participant Grant (“Grant”) and the 20     Terms and Conditions (“Terms and Conditions”), I hereby designate the person(s) indicated below
as my beneficiary(ies) to receive any payments under the Plan, Grant and Terms and Conditions after my death. 
  

					
	 Name
	 	
                               
                                         
    
	 	 
	 Address
	 	
                               
                                         
    
	 	
		 	
                               
                                         
    
	 	
		 	
                               
                                         
    
	 	
		 		 	

					
	 Social Sec. Nos. of Beneficiary(ies)
	 	
                               
                                         
         
	 	

					
	 Relationship(s)
	 	
                               
                                         
     
	 	
	 Date(s) of Birth
	 	
                               
                                         
     
	 	

 In the event that the above-named beneficiary(ies) predecease(s) me, I hereby designate the
following person(s) as beneficiary(ies): 
  

					
	 Name
	 	
                               
                                         
    
	 	 
	 Address
	 	
                               
                                         
    
	 	
		 	
                               
                                         
    
	 	
		 	
                               
                                         
    
	 	
		 		 	

					
	 Social Sec. Nos. of Beneficiary(ies)
	 	
                               
                                         
         
	 	

					
	 Relationship(s)
	 	
                               
                                         
     
	 	
	 Date(s) of Birth
	 	
                               
                                         
     
	 	

 I hereby expressly revoke all prior designations of beneficiary(ies), reserve the right to
change the beneficiary(ies) herein designated and agree that the rights of said beneficiary(ies) shall be subject to the terms of the Plan, Grant and these Terms and Conditions. In the event that there is no beneficiary living at the time of my
death, I understand that the payments under the Plan, Grant and these Terms and Conditions will be paid to my estate. 
  

					
	
                               
                                         
      
	 		 	                            
                                         
      
	 Date
	 		 	(Signature)
		 		 	
		 		 	
                               
                                         
   

		 		 	(Print or type name)

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