Common use of Profit Sharing Calculation Clause in Contracts

Profit Sharing Calculation. Quarterly Profit sharing Payment for Lake Erie Works retired employee. (i) The “Lake Erie Retiree Component” Profit Sharing Payment will be calculated as ((Lake Erie Quarterly EBITDA minus $25,000,000) X 6.5% X 20%) divided by the total number of Plan Participants as of the end of the quarter for which the calculation is being made. The payment will be distributed amongst retirees on an equal basis (subject to a maximum of $3,500 per quarter, per retired employee and a maximum of $14,000 per year). (ii) For this purpose, plan participants consist of retired employees (excluding those with deferred pensions) and survivors of deceased retired employees (excluding those with deferred pensions). In accordance with the provisions of Paragraph 2 above, the quarterly profit sharing payments will paid on an hourly basis. The current period EBITDA shall be calculated based on all tonnage shipped, including shipments to other Stelco business units. Where Lake Erie Works production is shipped to other Stelco entities it is understood that Lake Erie Works will receive fair market value. The profit margin per tonne on these slabs and coils shall not be less than the profit margin on goods shipped to arms length customers. If the margins per tonne on the inter unit shipments is less than the margin on arms length transactions the margin per tonne, and therefore EBITDA, will be adjusted to make it equal to arms length customers.

Profit Sharing Calculation. Quarterly Profit sharing Payment for per Lake Erie Works retired employee. (i) The “Lake Erie Retiree Component” Profit Sharing Payment will be calculated as ((Lake Erie Quarterly EBITDA minus $25,000,000) X 6.5% X 20%) divided by the total number of Plan Participants as of the end of the quarter for which the calculation is being made. The payment will be distributed amongst retirees on an equal basis (subject to a maximum of $3,500 per quarter, per retired employee and a maximum of $14,000 per year). (ii) For this purpose, plan participants consist of retired employees (excluding those with deferred pensions) and survivors of deceased retired employees (excluding those with deferred pensions). In accordance with the provisions of Paragraph 2 above, the quarterly profit sharing payments will paid on an hourly basis. The current period EBITDA shall be calculated based on all tonnage shipped, including shipments to other Stelco business units. Where Lake Erie Works production is shipped to other Stelco entities it is understood that Lake Erie Works will receive fair market value. The profit margin per tonne on these slabs and coils shall not be less than the profit margin on goods shipped to arms length customers. If the margins per tonne on the inter unit shipments is less than the margin on arms length transactions the margin per tonne, and therefore EBITDA, will be adjusted to make it equal to arms length customers.

Profit Sharing Calculation. Quarterly Profit sharing Payment for Lake Erie Works retired employee. (i) The “Lake Erie Retiree Component” Profit Sharing Payment will be calculated as ((Lake Erie Quarterly EBITDA minus $25,000,000) X 6.5% X 20%) divided by the total number of Plan Participants as of the end of the quarter for which the calculation is being made. The payment will be distributed amongst retirees on an equal basis (subject to a maximum of $3,500 per quarter, per retired employee and a maximum of $14,000 per year). (ii) For this purpose, plan participants consist of retired employees (excluding those with deferred pensions) and survivors of deceased retired employees (excluding those with deferred pensions). In accordance with the provisions of Paragraph 2 above, the quarterly profit sharing payments will paid on an hourly basis. The current period EBITDA shall be calculated based on all tonnage shipped, including shipments to other Stelco U. S. Steel business units. Where Lake Erie Works production is shipped to other Stelco U. S. Steel entities it is understood that Lake Erie Works will receive fair market value. The profit margin per tonne on these slabs and coils shall not be less than the profit margin on goods shipped to arms length customers. If the margins per tonne on the inter unit shipments is less than the margin on arms length transactions the margin per tonne, and therefore EBITDA, will be adjusted to make it equal to arms length customers.