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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 [•] 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 [•] Mining Year, this Agreement shall be automatically extended for as much

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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. 

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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 standard sinter feed – SSF (Itabira Fines), 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. 

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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. 

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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$ [•] (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. 

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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 

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     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 

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(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. 

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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. 

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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 NACIONAL24/39

 

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. 

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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] 

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    Exhibit 10.7

    

    

    

     

    PGT,
INC.

     

    

     

    AMENDED
AND RESTATED

     

    2006
EQUITY INCENTIVE PLAN

     

    1. Purpose; Types of Awards;
Construction.

     

    The
purposes of the PGT, Inc. Amended and Restated 2006 Equity Incentive Plan (the
“Plan”) are to afford an incentive to non-employee directors, selected officers
and other employees, advisors and consultants of PGT, Inc. (the “Company”), or
any Parent or Subsidiary of the Company that now exists or hereafter is
organized or acquired, to continue as non-employee directors, officers,
employees, advisors or consultants, as the case may be, to increase their
efforts on behalf of the Company and its Subsidiaries and to promote the success
of the Company’s business.  The Plan provides for the grant of Options
(including “incentive stock options” and “nonqualified stock options”), stock
appreciation rights, restricted stock, restricted stock units and other
equity-based awards.  The Plan is designed so that Awards granted
hereunder intended to comply with the requirements for “performance-based
compensation” under Section 162(m) of the Code may comply with such
requirements.

     

    The Plan
was amended and restated effective March 18, 2010, subject to the approval of
the affirmative vote of a majority of the issued and outstanding shares of Stock
present, in person or by proxy, at the Company’s 2010 annual meeting of
stockholders and entitled to vote thereon.

     

    2. Definitions.

     

    For
purposes of the Plan, the following terms shall be defined as set forth
below:

     

    (a) “Award”
means any Option, SAR, Restricted Stock, Restricted Stock Unit or Other
Stock-Based Award granted under the Plan.

     

    (b) “Award
Agreement” means any written agreement, contract or other instrument or document
evidencing an Award.

     

    (c) “Board”
means the Board of Directors of the Company.

     

    (d) “Change
in Control means the occurrence of any of the following:

     

    (i) any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act), other than one or more Permitted Holders, is or becomes the
beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act,
except that for purposes of this clause such person or group shall be deemed to
have “beneficial ownership” of all securities that such person or group has the
right to acquire, whether such right is exercisable immediately or only after
the passage of time), directly or indirectly, of Voting Stock of the Company or
the Subsidiary representing 50% or more of the voting power of the total
outstanding Voting Stock of the Company or the Subsidiary;

     

    (ii) during
any period of two consecutive years, individuals who at the beginning of such
period constituted the Board of Directors of the Company (together with any new
directors whose election to such Board of Directors or whose nomination for
election was approved by a vote of a majority of the members of the Board of
Directors of the Company, which members constituting such majority are then
still in office and were either directors at the beginning of such period or
whose election or nomination for election was previously so approved) cease for
any reason to constitute a majority of the Board of Directors of the Company;
or

     

    (iii) the
stockholders of the Company approve a plan of liquidation or dissolution of the
Company or there is consummated an agreement for the sale or other disposition,
directly or indirectly, by the Company of all or substantially all of the
Company’s assets, other than such sale or other disposition by the Company of
all or substantially all of the Company’s assets to an entity, more than fifty
percent (50%) of the combined voting power of the Voting Stock of which are
owned by stockholders of the Company in substantially the same proportions as
their ownership of the Company immediately prior to such sale.

     

    For
purposes of this Section 2(d) only:

    

    “Control”
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract, or otherwise, and the terms
“Controlling” and “Controlled” have meanings correlative thereto.

    

    “Controlled
Investment Affiliate” means, as to any Person, any other Person which directly
or indirectly is in Control of, is Controlled by, or is under common Control
with, such Person and is organized by such Person (or any Person Controlling
such Person) primarily for making equity or debt investments in the Company or
other portfolio companies.

     

    “Equity
Interest” shall mean, with respect to any Person, any and all shares, interests,
participations or other equivalents, including membership interests (however
designated, whether voting or nonvoting), of equity of such Person, including,
if such Person is a partnership, partnership interests (whether general or
limited) and any other interest or participation that confers on a Person the
right to receive a share of the profits and losses of, or distributions of
property of, such partnership, but excluding debt securities convertible or
exchangeable into such equity.

    

    “Permitted
Holder” means JLL Partners Fund IV, L.P. and its Controlled Investment
Affiliates.

    

    “Person”
means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, limited liability
company or government or other entity.

    

    “Voting
Stock” means, with respect to any Person, any class or classes of Equity
Interests pursuant to which the holders thereof have the general voting power
under ordinary circumstances to elect at least a majority of the board of
directors (or the functional equivalent) of such Person.

    

    (e) “Code”
means the Internal Revenue Code of 1986, as amended from time to time, and the
rules and regulations promulgated thereunder.

     

    (f) “Committee”
means the committee, if any, established by the Board to administer the Plan,
the composition of which shall at all times consist of “non-employee directors”
within the meaning of Rule 16b-3, and “outside directors” within the meaning of
Section 162(m) of the Code.

     

    (g) “Company”
means PGT, Inc., a corporation organized under the laws of the State of
Delaware, or any successor corporation.

     

    (h) “Covered
Employee” has the meaning ascribed to such term under Section 162(m) of the
Code.

     

    (i) “Effective
Date” means June 27, 2006.

     

    (j) “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time,
and the rules and regulations promulgated thereunder.

     

    (k) “Fair
Market Value” means, with respect to Stock or other property, the fair market
value of such Stock or other property determined by such methods or procedures
as shall be established from time to time by the Board.  Unless
otherwise determined by the Board in good faith, the per share Fair Market Value
of Stock as of a particular date shall mean (i) the closing sales price per
share of Stock on the national securities exchange on which the Stock is
principally traded, for the last preceding date on which there was a sale of
such Stock on such exchange; (ii) if the shares of Stock are then traded in an
over-the-counter market, the average of the closing bid and asked prices for the
shares of Stock in such over-the-counter market for the last preceding date on
which there was a sale of such Stock in such market; or (iii) if the shares of
Stock are not then listed on a national securities exchange or traded in an
over-the-counter market, such value as the Board, in its sole discretion, shall
determine.

     

    (l) “ISO”
means any Option intended to be and designated as an incentive stock option
within the meaning of Section 422 of the Code.

     

    (m) “NQSO”
means any Option that is not designated as an ISO.

     

    (n) “Option”
means a right, granted to a Participant under Section 6(b)(i), to purchase
shares of Stock.  An Option may be either an ISO or an NQSO, provided
that ISOs may be granted only to employees of the Company or a Parent or
Subsidiary of the Company.

     

    (o) “Other
Stock-Based Award” means a right or other interest granted to a Participant that
may be denominated or payable in, valued in whole or in part by reference to, or
otherwise based on, or related to, Stock, including but not limited to (i)
unrestricted Stock awarded as a bonus or upon the attainment of Performance
Goals or otherwise as permitted under the Plan and (ii) a right granted to a
Participant to acquire Stock from the Company containing terms and conditions
prescribed by the Board.

     

    (p) “Parent”
means a “parent corporation,” whether now or hereafter existing, as defined in
Section 424(e) of the Code.

     

    (q) “Participant”
means a person who, as a non-employee director, officer or other employee,
advisor or consultant to the Company or a Parent or Subsidiary of the Company,
has been granted an Award under the Plan.

     

    (r) “Performance
Goals” means performance goals based on one or more of the following criteria,
determined in accordance with generally accepted accounting principles, where
applicable:  (i) pre-tax income or after-tax income; (ii) earnings
including operating income, earnings before or after taxes, earnings before or
after interest, depreciation, amortization, or extraordinary or special items;
(iii) net income excluding amortization of intangible assets, depreciation and
impairment of goodwill and intangible assets; (iv) operating income; (v)
earnings or book value per share (basic or diluted); (vi) return on assets
(gross or net), return on investment, return on capital, or return on equity;
(vii) return on revenues; (viii) net tangible assets (working capital plus
property, plants and equipment) or return on net tangible assets (operating
income divided by average net tangible assets); (ix) operating cash flow
(operating income plus or minus changes in working capital less capital
expenditures); (x) cash flow, free cash flow, cash flow return on investment
(discounted or otherwise), net cash provided by operations, or cash flow in
excess of cost of capital; (xi) economic value created; (xii) operating margin
or profit margin; (xiii) stock price or total stockholder return; (xiv) earnings
from continuing operations; (xv) cost targets, reductions or savings,
productivity or efficiencies; (xvi) strategic business criteria, consisting of
one or more objectives based on meeting specified market penetration or market
share, geographic business expansion, customer satisfaction, employee
satisfaction, human resources management, supervision of litigation, information
technology, or goals relating to divestitures, joint ventures or similar
transactions; or (xvii) any other criteria determined by the Board to be
appropriate.  Where applicable, the Performance Goals may be expressed
in terms of attaining a specified level of the particular criterion or the
attainment of a percentage increase or decrease in the particular criterion, and
may be applied to one or more of the Company or a Parent or Subsidiary of the
Company, or a division or strategic business unit of the Company, all as
determined by the Board.  The Performance Goals may include a
threshold level of performance below which no payment will be made (or no
vesting will occur), levels of performance at which specified payments will be
paid (or specified vesting will occur) and a maximum level of performance above
which no additional payment will be made (or at which full vesting will
occur).  Each of the foregoing Performance Goals shall be evaluated in
accordance with generally accepted accounting principles, where applicable, and
shall be subject to certification by the Board.  The Board shall have
the authority to make equitable adjustments to the Performance Goals in
recognition of unusual or non-recurring events affecting the Company or any
Parent or Subsidiary of the Company or the financial statements of the Company
or any Parent or Subsidiary of the Company, in response to changes in applicable
laws or regulations or to account for items of gain, loss or expense determined
to be extraordinary or unusual in nature or infrequent in occurrence or related
to the disposal of a segment of a business or related to a change in accounting
principles.

     

    (s) “Plan”
means this PGT, Inc. Amended and Restated 2006 Equity Incentive Plan, as amended
from time to time.

     

    (t) “Restricted
Stock” means an Award of shares of Stock to a Participant under Section
6(b)(iii) that may be subject to certain restrictions and to a risk of
forfeiture.

     

    (u) “Restricted
Stock Unit” or “RSU” means a right granted to a Participant under Section
6(b)(iv) to receive Stock or cash at the end of a specified period, which right
may be conditioned on the satisfaction of specified performance or other
criteria.

     

    (v) “Rule
16b-3” means Rule 16b-3, as from time to time in effect promulgated by the
Securities and Exchange Commission under Section 16 of the Exchange Act,
including any successor to such Rule.

     

    (w) “Securities
Act” means the Securities Act of 1933, as amended from time to time, and the
rules and regulations promulgated thereunder.

     

    (x) “Stock”
means shares of the common stock, par value $0.01 per share, of the
Company.

     

    (y) “Stock
Appreciation Right” or “SAR” means the right, granted to a Participant under
Section 6(b)(ii), to be paid an amount measured by the appreciation in the Fair
Market Value of Stock from the date of grant to the date of exercise of the
right.

     

    (z) “Subsidiary”
means a “subsidiary corporation,” whether now or hereafter existing, as defined
in Section 424(f) of the Code.

     

    3. Administration.

     

    The Plan
shall be administered by the Board.  The Board may appoint a Committee
to administer all or a portion of the Plan and to make recommendations to the
Board with respect to the Plan and any Awards; provided, that such Committee’s
authorities and responsibilities shall always be limited by the Board’s sole
authority to make all final determinations under the Plan.  The Board
or the Committee may appoint and delegate to another person or committee any or
all of the authority of the Board or the Committee, as applicable, with respect
to Awards to Participants other than Participants who are subject to potential
liability under Section 16(b) of the Exchange Act with respect to transactions
involving equity securities of the Company at the time any such delegated
authority is exercised.  With respect to Awards that are intended to
meet the performance-based compensation exception to Section 162(m) of the Code
and that are made to a Participant who is or is reasonably expected to be a
Covered Employee, such delegation shall not include any authority, which if
exercised by the delegate(s) rather than by the Committee, would cause the
Participant’s Award to fail to meet such exception.  The Committee or
any other person to whom the Board has delegated duties as aforesaid may employ
one or more persons to render advice with respect to any responsibility the
Board or such Committee or person may have under the Plan.  No member
of the Board or Committee shall be liable for any action taken or determination
made in good faith with respect to the Plan or any Award granted
hereunder.

     

    The Board
shall have the authority in its discretion, subject to and not inconsistent with
the express provisions of the Plan, to administer the Plan and to exercise all
the powers and authorities either specifically granted to it under the Plan or
necessary or advisable in the administration of the Plan, including, without
limitation, the authority to:  (i) grant Awards; (ii) determine the
persons to whom and the time or times at which Awards shall be granted; (iii)
determine the type and number of Awards to be granted, the number of shares of
Stock to which an Award may relate and the terms, conditions, restrictions and
performance criteria relating to any Award; (iv) determine Performance Goals no
later than such time as required to ensure that an underlying Award that is
intended to comply with the requirements of Section 162(m) of the Code so
complies; (v) determine whether, to what extent, and under what circumstances an
Award may be settled, cancelled, forfeited, exchanged, or surrendered; (vi) make
adjustments in the terms and conditions of, and the Performance Goals (if any)
included in, Awards; (vii) construe and interpret the Plan and any Award; (viii)
prescribe, amend and rescind rules and regulations relating to the Plan; (ix)
determine the terms and provisions of the Award Agreements (which need not be
identical for each Participant); and (x) make all other determinations deemed
necessary or advisable for the administration of the Plan.  All
decisions, determinations and interpretations of the Board shall be final and
binding on all persons, including but not limited to the Company, any parent or
subsidiary of the Company, any Participant (or any person claiming any rights
under the Plan from or through any Participant) and any
stockholder.

     

    4. Eligibility.

     

    Awards
may be granted to selected non-employee directors, officers and other employees,
advisors or consultants of the Company or any Parent or Subsidiary of the
Company, in the discretion of the Board.  In determining the persons
to whom Awards shall be granted and the type of any Award (including the number
of shares to be covered by such Award), the Board shall take into account such
factors as the Board shall deem relevant in connection with accomplishing the
purposes of the Plan.

     

    5. Stock Subject to the
Plan.

     

    The
maximum number of shares of Stock reserved for the grant of Awards under the
Plan shall be 7,000,000, subject to adjustment as provided herein.  No
more than 7,000,000 shares of Stock may be made subject to Options (which may be
ISOs or NQSOs) or SARs granted under the Plan, and no more than 2,000,000 shares
of Stock may be made subject to stock-based awards other than Options or SARs
(including Restricted Stock and Restricted Stock Units or Other Stock-Based
Awards), in either case, subject to adjustment as provided
herein.  The maximum number of shares of Stock that may be made
subject to Awards granted to any Covered Employee in any calendar year may not
exceed 1,500,000.  Such shares may, in whole or in part, be authorized
but unissued shares or shares that shall have been or may be reacquired by the
Company in the open market, in private transactions or otherwise.  If
any shares subject to an Award are forfeited, cancelled, exchanged or
surrendered or if an Award terminates or expires without a distribution of
shares to the Participant, or if shares of Stock are surrendered or withheld as
payment of either the exercise price of an Award and/or withholding taxes in
respect of an Award, the shares of Stock with respect to such Award shall, to
the extent of any such forfeiture, cancellation, exchange, surrender,
withholding, termination or expiration, again be available for Awards under the
Plan.  Upon the exercise of any Award granted in tandem with any other
Award, such related Award shall be cancelled to the extent of the number of
shares of Stock as to which the Award is exercised and, notwithstanding the
foregoing, such number of shares shall no longer be available for Awards under
the Plan.

     

    
       

    

    In the
event that the Board shall determine that any dividend or other distribution
(whether in the form of cash, Stock, or other property), recapitalization, Stock
split, reverse split, reorganization, merger, consolidation, spin-off,
combination, repurchase, or share exchange, or other similar corporate
transaction or event, affects the Stock such that an adjustment is appropriate
in order to prevent dilution or enlargement of the rights of Participants under
the Plan, then the Board shall make such equitable changes or adjustments as it
deems necessary or appropriate to any or all of:  (i) the number and
kind of shares of Stock or other property (including cash) that may thereafter
be issued in connection with Awards; (ii) the number and kind of shares of Stock
or other property (including cash) issued or issuable in respect of outstanding
Awards; (iii) the exercise price, grant price or purchase price relating to any
Award; provided, that, with respect to ISOs, such adjustment shall be made in
accordance with Section 424(h) of the Code; and (iv) the Performance Goals
applicable to outstanding Awards; provided, however, that no such adjustment
shall cause any Award hereunder which is or becomes subject to Section 409A of
the Code to fail to comply with the requirements of such section.  In
addition, the Board may determine that any such equitable adjustment may be
accomplished by making a payment to the Award holder, in the form of cash or
other property (including but not limited to shares of Stock).

     

    6. Terms of
Awards.

     

    (a) General.  The
term of each Award shall be for such period as may be determined by the
Board.  Subject to the terms of the Plan and any applicable Award
Agreement, payments to be made by the Company or a Parent or Subsidiary of the
Company upon the grant, vesting, maturation or exercise of an Award may be made
in such forms as the Board shall determine at the date of grant or thereafter,
including, without limitation, cash, Stock or other property, and may be made in
a single payment or transfer, in installments or on a deferred
basis.  The Board may make rules relating to installment or deferred
payments with respect to Awards, including the rate of interest to be credited
with respect to such payments.  In addition to the foregoing, the
Board may impose on any Award or the exercise thereof, at the date of grant or
thereafter, such additional terms and conditions, not inconsistent with the
provisions of the Plan, as the Board shall determine.

     

    (b) Terms of Specified
Awards.  The Board is authorized to grant the Awards described
in this Section 6(b), under such terms and conditions as deemed by the Board to
be consistent with the purposes of the Plan.  Such Awards may be
granted with vesting, value and/or and payment contingent upon Performance
Goals.  Except as otherwise set forth herein or as may be determined
by the Board, each Award granted under the Plan shall be evidenced by an Award
Agreement containing such terms and conditions applicable to such Award as the
Board shall determine at the date of grant or thereafter.

     

    (i) Options.  The
Board is authorized to grant Options to Participants on the following terms and
conditions:

     

    (A) Type of
Award.  The Award Agreement evidencing the grant of an Option
under the Plan shall designate the Option as an ISO or an NQSO.

     

    (B) Exercise
Price.  The exercise price per share of Stock purchasable under
an Option shall be determined by the Board, but in no event shall the per share
exercise price of any Option be less than the Fair Market Value of a share of
Stock on the date of grant of such Option.  The exercise price for
Stock subject to an Option may be paid in cash or by an exchange of Stock
previously owned by the Participant, through a “broker cashless exercise”
procedure approved by the Board (to the extent permitted by law) or a
combination of the above, in any case in an amount having a combined value equal
to such exercise price; provided that the Board may require that any Stock
exchanged by the Participant have been owned by the Participant for at least six
months as of the date of exercise.  An Award Agreement may provide
that a Participant may pay all or a portion of the aggregate exercise price by
having shares of Stock with a Fair Market Value on the date of exercise equal to
the aggregate exercise price withheld by the Company.

     

    (C) Term and Exercisability of
Options.  Options shall be exercisable over the exercise period
(which shall not exceed ten years from the date of grant), at such times and
upon such conditions as the Board may determine, as reflected in the Award
Agreement; provided, that the Board shall have the authority to accelerate the
exercisability of any outstanding Option at such time and under such
circumstances as it, in its sole discretion, deems appropriate.  An
Option may be exercised to the extent of any or all full shares of Stock as to
which the Option has become exercisable, by giving written notice of such
exercise to the Board or its designated agent.

     

    (D) Termination of
Employment.  An Option may not be exercised
unless:  (1) the Participant is then a director of, in the employ of,
or providing services to, the Company or a Parent or Subsidiary of the Company;
and (2) the Participant has remained continuously so employed, or continuously
maintained such relationship, since the date of grant of the Option; provided,
that the Award Agreement may contain provisions extending the exercisability of
Options, in the event of specified terminations of employment or service, to a
date not later than the expiration date of such Option.

     

    (E) Other
Provisions.  Options may be subject to such other conditions
including, but not limited to, restrictions on transferability of the shares
acquired upon exercise of such Options, as the Board may prescribe in its
discretion or as may be required by applicable law.

     

    (ii) SARs.  The
Board is authorized to grant SARs to Participants on the following terms and
conditions:

     

    (A) In
General.  Unless the Board determines otherwise, an SAR (1)
granted in tandem with an NQSO may be granted at the time of grant of the
related NQSO or at any time thereafter or (2) granted in tandem with an ISO may
only be granted at the time of grant of the related ISO.  An SAR
granted in tandem with an Option shall be exercisable only to the extent the
underlying Option is exercisable.  Payment of an SAR may be made in
cash, Stock or property as specified in the Award or determined by the
Board.

     

    (B) Right
Conferred.  An SAR shall confer on the Participant a right to
receive an amount with respect to each share subject thereto, upon exercise
thereof, equal to the excess of (1) the Fair Market Value of one share of Stock
on the date of exercise over (2) the grant price of the SAR (which in the case
of an SAR granted in tandem with an Option shall be equal to the exercise price
of the underlying Option, and which in the case of any other SAR shall be such
price as the Board may determine), and may be paid with or without interest, as
determined by the Board, where the date of exercise is earlier than the date on
which payment in respect of the SAR is made.

     

    (C) Term and Exercisability of
SARs.  SARs shall be exercisable over the exercise period
(which shall not exceed the lesser of ten years from the date of grant or, in
the case of a tandem SAR, the expiration of its related Award), at such times
and upon such conditions as the Board may determine, as reflected in the Award
Agreement; provided, that the Board shall have the authority to accelerate the
exercisability of any outstanding SAR at such time and under such circumstances
as it, in its sole discretion, deems appropriate.  An SAR may be
exercised to the extent of any or all full shares of Stock as to which the SAR
(or, in the case of a tandem SAR, its related Award) has become exercisable, by
giving written notice of such exercise to the Board or its designated
agent.

     

    (D) Termination of
Employment.  An SAR may not be exercised unless:  (1)
the Participant is then a director of, in the employ of, or providing services
to, the Company or a Parent or Subsidiary of the Company; and (2) the
Participant has remained continuously so employed, or continuously maintained
such relationship, since the date of grant of the SAR; provided, that the Award
Agreement may contain provisions extending the exercisability of SAR, in the
event of specified terminations of employment or service, to a date not later
than the expiration date of such SAR (or, in the case of a tandem SAR, its
related Award).

     

    (E) Other
Provisions.  SARs may be subject to such other conditions
including, but not limited to, restrictions on transferability of the shares
acquired upon exercise of such SARs, as the Board may prescribe in its
discretion or as may be required by applicable law.

     

    (iii) Restricted
Stock.  The Board is authorized to grant Restricted Stock to
Participants on the following terms and conditions:

     

    (A) Issuance and
Restrictions.  Restricted Stock shall be subject to such
restrictions on transferability and other restrictions, if any, as the Board may
impose at the date of grant or thereafter, which restrictions may lapse
separately or in combination at such times, under such circumstances, in such
installments, or otherwise, as the Board may determine.  The Board may
place restrictions on Restricted Stock that shall lapse, in whole or in part,
only upon the attainment of Performance Goals.  Unless otherwise
determined by the Board, a Participant granted Restricted Stock shall have all
of the rights of a stockholder including, without limitation, the right to vote
Restricted Stock and the right to receive dividends thereon.

     

    (B) Forfeiture.  Upon
termination of employment with or service to the Company during the applicable
restriction period, Restricted Stock and any accrued but unpaid dividends that
are then subject to restrictions shall be forfeited; provided, that the Board
may provide, by rule or regulation or in any Award Agreement, or may determine
in any individual case, that restrictions or forfeiture conditions relating to
Restricted Stock will be waived in whole or in part in the event of terminations
resulting from specified causes, and the Board may in other cases waive in whole
or in part the forfeiture of Restricted Stock.

     

    (C) Certificates for
Stock.  Restricted Stock granted under the Plan may be
evidenced in such manner as the Board shall determine.  If
certificates representing Restricted Stock are registered in the name of the
Participant, such certificates shall bear an appropriate legend referring to the
terms, conditions and restrictions applicable to such Restricted Stock, and the
Company shall retain physical possession of the certificate.

     

    (D) Dividends.  Dividends
paid on Restricted Stock shall be either paid at the dividend payment date, or
deferred for payment to such date as determined by the Board, in cash or in
shares of Stock having a Fair Market Value equal to the amount of such
dividends.  Unless otherwise determined by the Board, Stock
distributed in connection with a stock split or stock dividend, and other
property distributed as a dividend, shall be subject to restrictions and a risk
of forfeiture to the same extent as the Restricted Stock with respect to which
such Stock or other property has been distributed.

     

    (iv) Restricted Stock
Units.  The Board is authorized to grant Restricted Stock Units
to Participants, subject to the following terms and conditions:

     

    (A) Award and
Restrictions.  Delivery of Stock or cash, as determined by the
Board, will occur upon expiration of the period specified for Restricted Stock
Units by the Board during which forfeiture conditions apply, or such later date
as the Board shall determine.  The Board may place restrictions on
Restricted Stock Units that shall lapse, in whole or in part, only upon the
attainment of Performance Goals.

     

    (B) Forfeiture.  Upon
termination of employment with or service to the Company prior to the vesting of
a Restricted Stock Unit, or upon failure to satisfy any other conditions
precedent to the delivery of Stock or cash to which such Restricted Stock Units
relate, all Restricted Stock Units and any accrued but unpaid dividend
equivalents that are then subject to deferral or restriction shall be forfeited;
provided, that the Board may provide, by rule or regulation or in any Award
Agreement, or may determine in any individual case, that restrictions or
forfeiture conditions relating to Restricted Stock Units will be waived in whole
or in part in the event of termination resulting from specified causes, and the
Board may in other cases waive in whole or in part the forfeiture of Restricted
Stock Units.

     

    (C) Dividend
Equivalents.  The Board may in its discretion determine whether
Restricted Stock Units may be credited with dividend equivalents at such time as
dividends, whether in the form of cash, Stock or other property, are paid with
respect to the Stock.  Any such dividend equivalents shall be credited
in the form of additional Restricted Stock Units and shall subject to
restrictions and a risk of forfeiture to the same extent as the Restricted Stock
Unit with respect to which such dividend equivalent was credited.

     

    (v) Other Stock-Based
Awards.  The Board is authorized to grant Awards to
Participants in the form of Other Stock-Based Awards, as deemed by the Board to
be consistent with the purposes of the Plan.  Awards granted pursuant
to this paragraph may be granted with vesting, value and/or payment contingent
upon Performance Goals.  The Board shall determine the terms and
conditions of such Awards at the date of grant or thereafter.  Without
limiting the generality of this paragraph, Other Stock-Based Awards may include
unrestricted shares of Stock to be issued in respect of bonuses and Stock-based
units issued in respect of one or more non-qualified deferred compensation
programs which may be adopted by the Company.

     

    7. Change in Control
Provisions.

     

    Unless
otherwise determined by the Board and evidenced in an Award Agreement, in the
event of a Change of Control:

     

    (a) any Award
carrying a right to exercise that was not previously vested and exercisable
shall become fully vested and exercisable; and

     

    (b) the
restrictions, deferral limitations, payment conditions and forfeiture conditions
applicable to any other Award granted under the Plan shall lapse and such Awards
shall be deemed fully vested, and any performance conditions imposed with
respect to Awards shall be deemed to be fully achieved.

     

    8. General
Provisions.

     

    (a) Nontransferability.  Unless
otherwise provided in an Award Agreement, Awards shall not be transferable by a
Participant except by will or the laws of descent and distribution and shall be
exercisable during the lifetime of a Participant only by such Participant or his
guardian or legal representative.

     

    (b) No Right to Continued
Employment, etc.  Nothing in the Plan or in any Award, any
Award Agreement or other agreement entered into pursuant hereto shall confer
upon any Participant the right to continue in the employ of, or to continue as a
director of, or to continue to provide services to, the Company or any Parent or
Subsidiary of the Company or to be entitled to any remuneration or benefits not
set forth in the Plan or such Award Agreement or other agreement or to interfere
with or limit in any way the right of the Company or any such Parent or
Subsidiary to terminate such Participant’s employment or director or independent
contractor relationship.

     

    (c) Taxes.  The
Company or any Parent or Subsidiary of the Company is authorized to withhold
from any Award granted, any payment relating to an Award under the Plan,
including from a distribution of Stock, or any other payment to a Participant,
amounts of withholding and other taxes due in connection with any transaction
involving an Award, and to take such other action as the Board may deem
advisable to enable the Company and Participants to satisfy obligations for the
payment of withholding taxes and other tax obligations relating to any
Award.  This authority shall include authority to withhold or receive
Stock or other property and to make cash payments in respect thereof in
satisfaction of a Participant’s tax obligations.  The Board may
provide in the Award Agreement that in the event that a Participant is required
to pay any amount to be withheld in connection with the issuance of shares of
Stock in settlement or exercise of an Award, the Participant may satisfy such
obligation (in whole or in part) by electing to have the Company withhold a
portion of the shares of Stock to be received upon settlement or exercise of
such Award that is equal to the minimum amount required to be
withheld.

     

    (d) Effective Date; Amendment
and Termination.

     

    (i) The Plan
shall take effect upon the Effective Date; provided, however, that holders of a
majority of the issued and outstanding shares of Stock shall have previously
approved the Plan.

     

    (ii) The Plan
was amended and restated effective March 18, 2010, subject to the approval of
the affirmative vote of a majority of the issued and outstanding shares of Stock
present, in person or by proxy, at the Company’s 2010 annual meeting of
stockholders and entitled to vote thereon.

     

    (iii) The Board
may at any time and from time to time alter, amend, suspend or terminate the
Plan in whole or in part; provided, however, that unless otherwise determined by
the Board, an amendment that requires stockholder approval in order for the Plan
to comply with Section 162(m) or any other law, regulation or stock exchange
requirement shall not be effective unless approved by the requisite vote of
stockholders.  The Board may at any time and from time to time alter,
amend, suspend or terminate an outstanding Award in whole or in
part.  Notwithstanding the foregoing sentence of this clause (ii), no
alteration or amendment to or suspension or termination of the Plan or any Award
shall affect adversely any of the rights of any Participant, without such
Participant’s consent, under any Award theretofore granted under the
Plan.

     

    (e) Expiration of
Plan.  Unless earlier terminated by the Board pursuant to the
provisions of the Plan, the Plan shall expire on the tenth anniversary of the
Effective Date.  No Awards shall be granted under the Plan after such
expiration date.  The expiration of the Plan shall not affect
adversely any of the rights of any Participant, without such Participant’s
consent, under any Award theretofore granted.

     

    (f) Deferrals.  The
Board shall have the authority to establish such procedures and programs that it
deems appropriate to provide Participants with the ability to defer receipt of
cash, Stock or other property payable with respect to Awards granted under the
Plan.

     

    (g) No Rights to Awards; No
Stockholder Rights.  No Participant shall have any claim to be
granted any Award under the Plan.  There is no obligation for
uniformity of treatment among Participants.   Except as provided
specifically herein, a Participant or a transferee of an Award shall have no
rights as a stockholder with respect to any shares covered by the Award until
the date of the issuance of a stock certificate to him for such
shares.

     

    (h) Unfunded Status of
Awards.  The Plan is intended to constitute an “unfunded” plan
for incentive and deferred compensation.  With respect to any payments
not yet made to a Participant pursuant to an Award, nothing contained in the
Plan or any Award shall give any such Participant any rights that are greater
than those of a general creditor of the Company.

     

    (i) No Fractional
Shares.  No fractional shares of Stock shall be issued or
delivered pursuant to the Plan or any Award.  The Board shall
determine whether cash, other Awards or other property shall be issued or paid
in lieu of such fractional shares or whether such fractional shares or any
rights thereto shall be forfeited or otherwise eliminated.

     

    (j) Regulations and Other
Approvals.

     

    (i) The
obligation of the Company to sell or deliver Stock with respect to any Award
granted under the Plan shall be subject to all applicable laws, rules and
regulations, including all applicable federal and state securities laws, and the
obtaining of all such approvals by governmental agencies as may be deemed
necessary or appropriate by the Board.

     

    (ii) Each
Award is subject to the requirement that, if at any time the Board determines,
in its absolute discretion, that the listing, registration or qualification of
Stock issuable pursuant to the Plan is required by any securities exchange or
under any state or federal law, or the consent or approval of any governmental
regulatory body is necessary or desirable as a condition of, or in connection
with, the grant of an Award or the issuance of Stock, no such Award shall be
granted or payment made or Stock issued, in whole or in part, unless listing,
registration, qualification, consent or approval has been effected or obtained
free of any conditions not acceptable to the Board.

     

    
       

    

    (iii) In the
event that the disposition of Stock acquired pursuant to the Plan is not covered
by a then-current registration statement under the Securities Act and is not
otherwise exempt from such registration, such Stock shall be restricted against
transfer to the extent required by the Securities Act or regulations thereunder,
and the Board may require a Participant receiving Stock pursuant to the Plan, as
a condition precedent to receipt of such Stock, to represent to the Company in
writing that the Stock acquired by such Participant is acquired for investment
only and not with a view to distribution.

     

    (iv) The Board
may require a Participant receiving Stock pursuant to the Plan, as a condition
precedent to receipt of such Stock, to enter into a stockholder agreement or
“lock-up” agreement in such form as the Board shall determine is necessary or
desirable to further the Company’s interests.

     

    (k) Section 409A
Compliance.  The intent of the Company is that payments and
benefits under the Plan comply with Section 409A of the Code to the extent
subject thereto, and, accordingly, to the maximum extent permitted, the Plan
shall be interpreted and be administered to be in compliance
therewith.  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, a Participant shall not be considered
to have terminated employment with the Company for purposes of the Plan and no
payment shall be due to the Participant under the Plan or any Award Agreement
until the Participant would be considered to have incurred a “separation from
service” from the Company within the meaning of Section 409A of the
Code.  Any payments described in the Plan that are due within the
“short term deferral period” as defined in Section 409A of the Code shall not be
treated as deferred compensation unless applicable law requires
otherwise.  Notwithstanding anything to the contrary in the Plan, to
the extent necessary to avoid imposition of any individual excise tax and late
interest charges imposed under Section 409A of the Code, the settlement and
payment of all or any portion of any Award that is to be paid or settled as part
of a separation pay plan shall instead be made on the first business day after
the date that is six months following such separation from service (or the date
of death, if earlier).

     

    (l) Equity
Exchange.  Notwithstanding any other provision of the Plan to
the contrary, upon approval of the Company’s stockholders at its 2010 annual
meeting of stockholders, the Company may offer to employees of the Company or
its Subsidiary the opportunity to tender certain outstanding equity awards
granted under the Plan or the Company’s 2004 Stock Incentive Plan for
cancellation in exchange for the issuance of a replacement Option that will
represent the ability to purchase, at a lower exercise price and subject to a
new term and new vesting schedule, shares of Stock, provided that such offer to
exchange such outstanding equity awards is completed within three months of the
date of the receipt of such stockholder approval.

     

    (m) Governing
Law.  The Plan and all determinations made and actions taken
pursuant hereto shall be governed by the laws of the State of Delaware without
giving effect to the conflict of laws principles thereof.

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