Admin. Regs. for the Executive Mgmt. Annual Incentive Comp. Program



 Exhibit 10(t) 
 Administrative Regulations for the 
 Executive Management Annual Incentive Compensation Program 

 under the United States Steel Corporation 2005 Annual Incentive Compensation Plan 
 As amended by the Compensation & Organization Committee 
 on February 23, 2009 
  

	1.	Administration. The Compensation & Organization Committee (the “Committee”) shall administer the Annual Incentive Compensation Program (the
“Program”) under and pursuant to the authority provided in the Board of Directors’ April 26, 2005 delegation to the Committee and Section 3 of the United States Steel Corporation 2005 Annual Incentive Compensation
Plan (the “Plan”). 

  

	 	A.	Definitions. Unless otherwise defined herein, capitalized terms used herein shall have the meanings set forth in the Plan. 

  

	 	B.	Compensation consultant. The Committee may engage a compensation consultant to assess the competitiveness of various target Award levels and advise the Committee.


  

	2.	Participation/Eligibility. All management employees of the Corporation, its Subsidiaries and affiliates are eligible to participate in the Program upon designation by
the Committee or Senior Officers (“Participants”). 

  

	 	A.	Executive Management. All Executive Management employees of USS, its subsidiaries and affiliates designated via written notice as participants by the Committee are eligible
to participate (“Eligible Employees” or “Participants”). 

  

	 	B.	New Participants. A Participant who was not a Participant on the first day of the Performance Period may, subject to the Committee’s discretion, become a Participant
during the Performance Period participating on a pro rata basis for the remaining portion of the period in which such Participant first becomes eligible to participate but shall be ineligible to participate in this program for any portion of a year
during which the Participant participates in any other cash incentive or bonus plan or program; provided, however, that a Covered Employee (as defined in section 162(m) of the Internal Revenue Code) may so participate only if he or she
becomes a Participant effective not later than 90 days after the beginning of the Performance Period. 

  

	 	C.	Rights. No Participant or other employee shall have any claim to be granted an Award under the Program, and nothing contained in the Program or any Award Agreement shall
confer upon any Participant any right to continue in the employ of the Corporation, its Subsidiaries or affiliates or interfere in any way with the right of the Corporation, its Subsidiaries or affiliates to terminate a Participant’s employment
at any time. 

  

	3.	Performance Period. 

  

	 	A.	Calendar year. Unless otherwise determined by the Committee at the commencement of each Performance Period, each such Performance Period shall be a calendar year.










	4.	Performance Goal Setting. 

  

	 	A.	Performance Goals. The Corporate Performance Goals for the Performance Period shall be the targets assigned to each of the Corporate performance measures, which shall be set
by the Committee during the first 90 days of the Performance Period. Unless otherwise determined by the Committee at the beginning of the relevant Performance Period, the Corporate performance measures will be the following objective measures:


  

	 	(1)	Return on Capital Employed (ROCE). Return on Capital Employed shall mean, for the Performance Period, income from consolidated worldwide operations (including minority
interests), divided by consolidated worldwide capital employed (including minority interests) expressed as a percentage. 

 Income from consolidated worldwide operations (including minority interests) shall mean income from operations as reported in the consolidated statement of operations of United States Steel Corporation for the Performance Period.

 Capital employed shall be calculated by using the average of the opening balance at the commencement of the Performance Period, and the
balances at the end of each quarter during the Performance Period, of the sum of net fixed assets, inventories, accounts receivable and sold accounts receivable, less accounts payable. 
 For purposes of calculating ROCE for a Performance Period, the following principles shall apply: that if income or loss related to an asset is included
in the numerator for any portion of the Performance Period that the related asset’s capital employed shall be included in the denominator for the same portion of the Performance Period (and vice versa) and, similarly, if income or loss related
to an asset is excluded from the numerator for any portion of the Performance Period that the related asset’s capital employed shall be excluded from the denominator for the same portion of the Performance Period (and vice versa). 

Subject to the foregoing, the following adjustment provisions shall apply to the numerator and denominator (to the extent included in such amount) of
the ROCE performance calculation: 
  

	 	(a)	exclude the gain or loss related to a business disposition or divestiture and assume that the business achieved the performance objectives at Business Plan (as defined below) levels
during the balance of the Performance Period following such disposition or divestiture; 

  

	 	(b)	exclude the gain or loss related to an asset sale not made in the ordinary course of business; 

  

	 	(c)	exclude all amounts associated with facility shutdowns/closures; 

  

	 	(d)	exclude all amounts associated with long-lived asset impairments; 

  

	 	(e)	exclude all amounts associated with acquisitions; 

  

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	 	(f)	exclude all amounts related to workforce reductions and other restructuring charges and/or other non-recurring gains or losses; 

  

	 	(g)	exclude contingent liability and tax accrual amounts for items or events not related to the applicable Performance Period; and 

  

	 	(h)	exclude all amounts associated with changes in accounting standards and changes in law that affect reported results; 

 provided, however, none of the above adjustments shall be made to the ROCE calculation to the extent the events or occurrences relating to the
adjustments are recognized and/or contemplated in the Corporation’s “Business Plan”, as last presented to its Board of Directors within the first 90 days of the year represented by the relevant Performance Period; 
 provided, further, no adjustment pursuant to any adjustment category, identified as (a) through (h), above, shall be made to the ROCE
calculation to the extent the total adjustment for such category is less than $5 million; 
 provided, further, all the above
adjustments shall be calculated in accordance with generally accepted accounting principles at the time of calculation to the extent the nature of the adjustment is addressed therein; 
 provided, further, none of the above adjustments shall be made to the ROCE calculation to the extent the relevant data is not available;

 provided, further, the ROCE calculation, including all adjustments thereto, shall be determined at the time the Committee makes its
award decisions and in accordance with the reporting requirements applicable to the Corporation’s reports on Forms 10-K and 10-Q; 
 provided, further, the calculated ROCE resulting from the foregoing shall be reduced to the extent it exceeds the calculation of return on capital employed under the United States Steel Corporation Short Term Incentive Plan for
Non-Union Salaried Employees for the same Performance Period; and 
 provided, further, the foregoing limit shall not limit the
Committee’s authority to exercise additional downward discretion either in determining the value of ROCE or in calculating any related award. 
  

	 	(2)	Shipment Tons. Shipment Tons shall mean the number of worldwide tons of steel products shipped for the Performance Period, determined consistent with external reporting
practices. This performance measure is to be adjusted in accordance with Section 4.A.(4) of these Regulations. 

  

	 	(3)	Citizenship Measures. Citizenship Measures shall mean: 

  

	 	(a)	 Safety Performance. Safety Performance shall mean the improvement, if any, from Performance Period to Performance 



  

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Period in the number of serious injury cases occurring during the Performance Period involving the represented and non-represented employees at the
properties and operations of United States Steel Corporation and its subsidiaries as collected and reported to the Vice President – Human Resources for purposes of determining the baseline/target for the relevant Performance Period. A serious
injury case shall mean a work-related injury that prevents an employee from returning to work for 31 or more calendar days. This performance measure is to be adjusted in accordance with Section 4.A.(4) of these Regulations.



  

	 	(b)	Toxic Emission Improvement. Toxic Emission Improvement (also referred to as “Environmental Emission Improvement”) shall mean the improvement, if any, from
Performance Period to Performance Period in the number of occurrences of noncompliant environmental emissions determined in accordance with our air and water permits at our domestic and foreign production units and facilities (excluding our joint
ventures and Transtar). 

 For purposes of the Environmental Emission Improvement performance measure only, the Performance
Period shall be the same Performance Period used for the other performance measures except that such period shall begin one calendar month prior to the month in which the Performance Period begins and shall end one calendar month prior to the month
in which the Performance Period ends (that is, December 1 to November 30). 
 The occurrences of noncompliant environmental
emissions relating to production units/facilities at which 
  

	 	(i)	the method and/or frequency of measuring permit compliance is revised during the current Performance Period in response to a change in governmental requirements and/or


  

	 	(ii)	are adjusted pursuant to Section 4.A.(4) of these Regulations 

 shall be excluded 
  

	 	(x)	consistent with Section 4.A.(4) hereof, from the current target (that is, the number of occurrences during prior Performance Period) and the current actual performance for the
current Performance Period, and 

  

	 	(y)	unless the Committee determines otherwise, for the succeeding Performance Period, from (i) the next target (that is, the number of occurrences during current Performance
Period) and (ii) the next actual performance. 

  

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	 	(4)	Adjustments to performance measures. Consistent with Section 5.A.(2)(d) hereof, all adjustments to performance measures, whether identified in this paragraph or not, are
conditioned upon the requirement that such adjustments can be accomplished in conformance with Section 162(m) of the Internal Revenue Code. 

 In addition to the other adjustments to performance measures identified in these Regulations, the performance measures other than ROCE shall each be adjusted in the event of an acquisition, disposition, idling (as
defined below), startup or shutdown of a business or production facility to exclude all measures, to the extent all relevant data is available, relating to such business or production facility from the target and from the related performance
calculation for the Performance Period during which the acquisition, disposition, idling (as defined below), startup or shutdown occurs; 
 provided, however, that the term “idling” shall refer to a plant/facility that was not operated for at least thirty consecutive days during the relevant Performance Period and shall be applied for adjustment purposes
(a) only with respect to the Environmental Emissions Improvement performance measure and (b) only in the event such idling pertains to an entire plant, or a substantial portion of a plant (that is, an entire hot-end, an entire
finishing-end, or an entire coke battery), as such plants are identified and reported to the Vice President – Human Resources for purposes of setting the Environmental Emissions Improvement baseline/target for the relevant Performance Period;
and 
 provided, further, the foregoing adjustment will not pertain to the Shipment Tons performance measure (target or performance
calculation) to the extent and for the period such acquisition, disposition, startup or shutdown is recognized and/or contemplated in the shipment tons making up the Corporation’s Business Plan, as presented to its Board of Directors within the
first 90 days of the year represented by the relevant Performance Period. 
  

	 	B.	Corporate or subsidiary level. Notwithstanding the Corporate performance measure definitions, the Committee may assign Performance Goals for the Corporate performance
measures at the Corporate, subsidiary and/or affiliate level for each Participant. 

  

	 	C.	Setting of Incentive Targets and Incentive Awards. The Incentive Target, defined as a percent of the Participant’s base salary (the Participant’s monthly base
salary at the end of the relevant Performance Period times 12), and the Incentive Awards for all levels of Performance Goals shall be set by the Committee during the first 90 days of each Performance Period. 

  

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	 	(1)	The Committee shall establish and approve the relevant Incentive Targets for each Participant as well as the related Incentive Award for achieving each Performance Goal and/or level
of attainment thereof. 

  

	 	(2)	The Committee will assess the competitiveness of the various Incentive Award levels. 

  

	 	D.	Performance Goal weighting. 

  

	 	(1)	Relative weighting. Unless otherwise determined by the Committee when establishing the Performance Goals, the relative weighting assigned to each of the performance measures
shall be as follows: 

  

	 	(a)	ROCE. Return on Capital Employed shall be 80% of the Incentive Target value. 

  

	 	(b)	Shipment Tons. Shipment Tons shall be 20% of the Incentive Target value. 

  

	 	(c)	Citizenship Measures. Safety shall add or subtract up to 10% of the Incentive Target value, or have no impact on the Incentive Award, depending upon actual performance with
respect to its related Performance Goal. Environmental Emissions shall add or subtract up to 5% of the Incentive Target value, or have no impact on the Incentive Award, depending upon actual performance with respect to its related Performance Goal.


  

	 	(2)	Maximum award level. The maximum award level shall be 215% of the Incentive Target value with achievement of the highest ROCE Performance Goal representing 160% of such
award, achievement of the highest Shipment Tons Performance Goal representing 40% of such award and achievement of the highest Citizenship Measures Performance Goals adding 10% (safety) and 5% (environmental emission improvement) each to such award.


  

	5.	Performance Measurement Mechanics. 

  

	 	A.	Payout determination. 

  

	 	(1)	Evaluation. The Committee shall evaluate actual Corporate performance against the Corporate Performance Goals for the Performance Period during the first 60 days following
the end of the relevant Performance Period. 

  

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	 	(2)	Calculation. 

  

	 	(a)	Rounding Performance Calculations. The calculation of actual performance for each performance measure shall be rounded to the nearest decimal place consistent with the number
of decimal places approved by the Committee at the time it set the relevant target, rounding up in the case of 5 or more and rounding down in the case of 4 or less. 

  

	 	(b)	Interpolation. Interpolation will be used to determine an Incentive Award for performance that correlates to performance between the pre-determined ROCE and Shipment Tons
Performance Goals. Such interpolation will not be used in connection with the Citizenship Measures. The interpolated payout percentages for ROCE and Shipment Tons shall be added together prior to rounding to the nearest whole percentage point,
rounding up in the case of 5 or more and rounding down in the case of 4 or less. 

  

	 	(c)	Maximum award. No one Participant may receive more than $5 million in Incentive Awards for any one calendar year under this Program. 

  

	 	(d)	Adjustments. At the commencement of each Performance Period, the Committee may also determine that unusual items or certain specified events or occurrences will be excluded
from, or considered in connection with, any or all of the calculations for such Performance Period; provided, however, that all such adjustments must satisfy the requirements of Section 162(m) of the Internal Revenue Code.


  

	 	(3)	Negative discretion. The Committee retains negative discretion to reduce any and all Incentive Awards to amounts below the amounts that would be payable as a result of
performance measured against the Performance Goals; however, the Committee may not increase Incentive Awards above the amount payable as a result of performance measured against the Performance Goals. 

  

	 	B.	Form of Payout. 

  

	 	(1)	Cash and/or Common Stock. The Committee may determine to pay the awards in the form of cash or common stock, or any combination thereof, which determination may be made on a
non-uniform basis among Participants. 

  

	 	(2)	 Common Stock Awards. The determination to pay awards in the form of common stock shall be a determination to satisfy the award through 



  

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shares available under the 2005 Stock Incentive Plan, subject to the terms and conditions of such plan, and provided that the performance period under this
Program shall also count toward any minimum performance period required for an unrestricted grant of shares under such plan. 


  

	 	(3)	Award Unit Determination Procedure. If the Committee determines to pay all or a portion of an award in the form of common stock, the value of such award, or portion thereof,
under this Program shall be converted into a number of shares of common stock by dividing (i) the value of such award, or portion thereof, by (ii) the Common Stock Unit Value, which is to be determined as follows: 


 

	 	(a)	Common Stock Unit Value. The Common Stock Unit Value shall be equal to the Fair Market Value (as defined in the 2005 Stock Incentive Plan) of a share of common stock on the
date of award (Date of Award). The Date of Award shall be established prospectively by the Committee at the time it determines the award, with the goal of setting the date close in proximity to the related payroll processing date for awards under
the Plan. Unless otherwise established by the Committee, the Date of Award shall be the third business day following the date the Committee makes its determination of the award. 

  

	 	(4)	Netting of Common Stock Shares. To the extent permitted under the 2005 Stock Incentive Plan and unless otherwise determined by the Committee or an election with respect to a
different medium of payment is offered to and elected by a Participant in accordance with procedures approved by the Company, the shares of common stock delivered in connection with any common stock award under this Program shall be net of any tax
withholding obligation. 

  

	6.	Timing of Payments. Unless otherwise determined by the Committee in its discretion, payment of Annual Incentive Compensation, if any, under this Program with respect
to any Performance Period will be paid on the 5th business day following the date of the Committee’s determination of any such Incentive Award to be paid; provided, however, the payment of any such award shall be paid on or before
March 15 of the year following the end of the relevant calendar year Performance Period and as provided in Section 6 of the Plan. 

  

	7.	Termination of Employment. The following provisions apply in the case of a Participant’s termination of employment during the Performance Period:


  

	 	A.	 Normal Retirement, Death, or Disability. Following a Participant’s Normal Retirement, which constitutes a separation from service under
Section 409A of the Code, Death or Disability, a prorated value of such Participant’s target Award may be awarded by the Committee based upon the number of complete months worked during the Performance Period; provided that
(i) such Award is calculated and delivered following the relevant Performance Period in 



  

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accordance with the terms of the Plan, (ii) the relevant Performance Goals are achieved, (iii) the Participant is employed for at least six
(6) months during the Performance Period and (iv) the Committee retains its negative discretion with respect to such awards. 


  

	 	(1)	Normal Retirement. Normal Retirement shall mean (a) normal retirement as defined in the applicable pension rules under the United States Steel Corporation Plan for
Employee Pension Benefits (Revision of 2003), or similar USS subsidiary plan, or (b) retirement at any age with the consent of the Committee; however, unless specifically consented to in writing by the Committee, Normal Retirement does not
include retirement under circumstances in which the employee accepts employment with a company that owns, or is owned by, a business that competes with USS, or its subsidiaries or affiliates. 

  

	 	(B)	Resignation, Early Retirement and Other Termination. Following a Participant’s Resignation, Early Retirement or other termination, all pending Incentive Awards are
forfeited. 

  

	 	(1)	Early Retirement. Early Retirement shall mean a retirement other than a Normal Retirement. 

  

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