Document:

EX-10.1

 

Exhibit
10.1

THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES

THAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933

Administrative Regulations for the

Long-Term Incentive Compensation Program

under the United States Steel Corporation 2005 Stock Incentive Plan

As amended by the Compensation & Organization Committee

On April 28, 2008, the Effective Date

	1.	 	Administration. The Compensation & Organization Committee (the “Committee”)
shall administer the Long-Term Incentive Compensation Program (the “Program”) under
and pursuant to its authority as provided in Section 3 of the United States Steel Corporation
2005 Stock Incentive Plan (the “Plan”).

	 	A.	 	Delegation of Authority. The Committee may delegate to a designated
individual (the “Stock Plan Officer”) and to other Officer-Directors and the
executive directly responsible for corporate human resources (collectively, the
“Senior Officers”) its duties under the Program subject to such conditions and
limitations as the Committee shall prescribe, except that only the Committee may
designate and grant Awards to Participants. The Committee hereby delegates to the
Stock Plan Officer all authority necessary or desirable to administer the Program,
including the authority to “consent” upon termination and the authority to delegate all
or any portion of the delegated authorities; provided, however, that such authority is
limited as follows: (i) only the Committee may (a) designate and grant Awards to
Participants (provided that grants to non-executives may be made through a delegated
process to one or more Committee members from time to time under rules established by
the Committee in advance of such grants), (b) approve the vesting of Options,
Restricted Stock, Restricted Stock Units or Performance Awards, (c) adjust the number
of Shares pursuant to Section 8 of the Plan, (d) approve or amend the form of Awards,
(e) amend outstanding Awards, (f) determine the Performance Goals, measures and other
terms associated with Performance Awards or (g) modify or amend these Regulations,
including any appendices and schedules attached hereto, and (ii) no delegate of the
Stock Plan Officer’s authority may delegate his or her authority. Without limiting the
foregoing, the Stock Plan Officer is hereby directed to (x) administer Awards under the
Plan, (y) determine whether any Participant has violated any terms and conditions set
forth in the Award Agreement so as to warrant cancellation of an Award and upon making
such determination, cancel such Award, and (z) maintain appropriate records and
establish necessary procedures related to the Plan.
	 
	 	B.	 	Definitions. Unless otherwise defined herein, capitalized terms used
herein shall have the meanings set forth in the Plan. The terms “Stock Plan Officer”
and “Committee” shall be read as being one and the same; provided, however, the
preceding (i) does not apply where necessary to give meaning to the terms, (ii) does
not limit the authority of the Committee or increase the authority of the Stock Plan
Officer, and (iii) requires that the Stock Plan Officer have the requisite authority
(as defined above and/or pursuant to any current Committee resolution) in the context
in which the term “Committee” is used.

 

 

	 	C.	 	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. Employees designated by the Committee to be
Executive Management are hereby designated to be Participants. Grants to individuals
designated to be Executive Management must be approved by the Committee.
	 
	 	B.	 	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.	 	Components of Long-Term Incentives. Award grants may be made in the following forms:
Options, Restricted Stock, Other Stock-Based Awards (including without limitation,
Restricted Stock Units), and Performance Awards.

     4. Options.

	 	A.	 	Award Grants/Grant Price. The Committee may grant Options to
Participants. All Options will be nonstatutory stock options. The exercise price per
Share of the Options shall be no less than 100% of the Fair Market Value of the Shares
on the date of grant of the Option.
	 
	 	B.	 	Term. Each Option shall state the period or periods of time during
which it may be exercised, in whole or in part. The term of an Option may not exceed
ten years.
	 
	 	C.	 	Vesting. Unless otherwise determined by the Committee, Option grants
shall vest ratably over three years (1/3 on each of the first, second and third grant
date anniversaries), each such year to be considered a “Vesting Year”.
	 
	 	D.	 	Exercise of Options.

	 	(1)	 	Effective Date of Exercise. The date of exercise of an
Option shall be the business day on which the notice of exercise and payment
for Shares being purchased are received by the Stock Plan Officer.
	 
	 	(2)	 	Payment for Shares Purchased. Unless otherwise
determined by the Committee, payment of the purchase price shall be made, at
the election of the Participant, in cash or by delivering Shares owned by the
Participant or withholding of shares to be acquired upon exercise in accordance
with

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procedures established by the Stock Plan Officer and valued at Fair Market
Value on the date of exercise, or a combination thereof.

	 	(a)	 	Overpayment in Shares. If the Fair
Market Value of Shares delivered or withheld in payment of the purchase
price exceeds the purchase price, a certificate, or its equivalent,
representing the whole number of excess Shares together with a check,
or its equivalent, representing the Fair Market Value of any excess
partial Share shall be delivered to the Participant.
	 
	 	(b)	 	Underpayment in Shares. If the Fair
Market Value of Shares delivered or withheld in payment of the purchase
price is less than the purchase price, the difference shall be
delivered by the Participant in cash immediately upon notification of
such difference.
	 
	 	(c)	 	Requirements Relating to Previously Owned
Shares. Shares delivered in payment of the purchase price shall be
duly endorsed for transfer to the Corporation. If Shares so delivered
are not registered in the name of the Participant individually, the
Participant shall also provide evidence acceptable to the Stock Plan
Officer that such Shares are beneficially owned by the Participant
individually.

	E.	 	Post-Termination of Employment Exercise.

	 	(1)	 	Retirement, Death, Disability, Termination with
Consent. Unless otherwise determined by the Committee, a prorated number
of the Options scheduled to vest during the Vesting Year will vest, based upon
the number of complete months worked during the Vesting Year in which the
Participant’s termination of employment occurs by reason of Retirement, death,
Disability or Termination with Consent. The prorated award will be calculated
upon such termination and will vest at the next vesting date. The remaining
unvested Option grants are forfeited immediately upon termination. Vested
options remain exercisable for three years following such termination or, if
less, until the original expiration date.

	 	(a)	 	Example: If the 1/3 ratable vesting for
Vesting Year 3 is 1000 shares for Award 1, 1000 shares for Award 2, and
1000 shares for Award 3 and if the Participant terminates employment by
reason of Retirement six months following the Award 3 grants, the
Participant is entitled to vesting of 1/2 of all grants that would have
vested at the end of the Vesting Year during which he or she retires
(Vesting Year 3 in this example), or 1500 shares. This example focuses
only on the shares that would vest during Vesting Year 3; however,
another 3000 shares would have vested in the aggregate following
Vesting Years 1 and 2, for a total of 4500 shares vesting under the
Awards 1, 2 and 3. The 1500 shares would vest upon the next scheduled
vesting date following termination. The post-

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termination exercise period would be measured for three years
following the date of termination, even though the final pro rata
tranche does not vest upon termination.

	 	(b)	 	“Disability” shall be determined, for
all purposes under the Program, by reference to Section 409A of the
Internal Revenue Code of 1986, as amended (“Section 409A”).
	 
	 	(c)	 	“Retirement” shall mean, for all
purposes under the Program, the applicable employee’s termination of
employment after having satisfied the age and/or service requirements
necessary to commence an immediate pension under the Corporation’s
defined benefit pension plan (i.e., 65/5, 62/15, 60/15 or 30-Year
retirement options), regardless of whether the employee is a
participant in such pension plan; provided, however, such term does not
include, unless the Committee consents, retirement under circumstances
in which the employee accepts employment with a company that owns, or
is owned by, a business that competes with the Corporation, or its
Subsidiaries or affiliates.
	 
	 	(d)	 	“Termination” shall mean the applicable
employee’s termination of employment other than by Retirement, death or
Disability.
	 
	 	(e)	 	“Termination with Consent” shall mean
Termination at any age with the consent of the Committee. Consent
shall be deemed to be given if the employee incurs a break in
continuous service due to layoff or disability as defined under the
Corporation’s defined benefit pension plan, regardless of whether the
employee is participating in such plan.
	 
	 	(f)	 	“Termination without Consent” shall
mean Termination at any age without the consent of the Committee.

	 	(2)	 	Termination without Consent and Termination for Cause.
Unless otherwise determined by the Committee, vested and unvested Options are
forfeited if termination of employment is due to Termination without Consent or
Termination for Cause.

	F.	 	Change of Control. All Options vest immediately upon a Change of
Control, without regard to the Participant’s continued employment or termination
thereof. If a Participant’s employment is terminated within three years of a Change of
Control, whether voluntarily or involuntarily (except for Cause), each vested Option
will remain exercisable until the end of its term.

	 	(1)	 	Change of Control. For the purposes of these Administrative
Regulations, the term Change of Control shall mean a change in control of a
nature that would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), whether or not the Corporation is

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then subject to such reporting requirement; provided, that, without
limitation, such a change in control shall be deemed to have occurred if:

	 	(a)	 	any person (as such term is used in Sections
13(d) and 14(d) of the Exchange Act) (a “Person”) is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Corporation (not including
in the amount of the securities beneficially owned by such person any
such securities acquired directly from the Corporation or its
affiliates) representing twenty percent (20%) or more of the combined
voting power of the Corporation’s then outstanding voting securities;
provided, however, that for purposes of this Agreement the term
“Person” shall not include (1) the Corporation or any of its
subsidiaries, (2) a trustee or other fiduciary holding securities under
an employee benefit plan of the Corporation or any of its subsidiaries,
(3) an underwriter temporarily holding securities pursuant to an
offering of such securities, (4) a corporation owned, directly or
indirectly, by the stockholders of the Corporation in substantially the
same proportions as their ownership of stock of the Corporation, or (5)
any individual, entity or group involved in the acquisition of the
Corporation’s voting securities in connection with which, pursuant to
Rule 13d-1 promulgated pursuant to the Exchange Act, such individual,
entity or group is permitted to, and actually does, report its
beneficial ownership on Schedule 13G (or any successor Schedule);
provided that, if any such individual, entity or group
subsequently becomes required to or does report its beneficial
ownership on Schedule 13D (or any successor Schedule), then, for
purposes of this paragraph, such individual, entity or group shall be
deemed to have first acquired, on the first date on which such
individual, entity or group becomes required to or does so report,
beneficial ownership of all of the Corporation’s then outstanding
voting securities beneficially owned by it on such date; and
provided, further, however, that for purposes of this paragraph
(a), there shall be excluded any Person who becomes such a beneficial
owner in connection with an Excluded Transaction (as defined in (c)
below); or
	 
	 	(b)	 	the following individuals (the “Incumbent
Board”) cease for any reason to constitute a majority of the number of
directors then serving: individuals who, on the date hereof, constitute
the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened
election contest including, but not limited to, a consent solicitation,
relating to the election of directors of the Corporation) whose
appointment or election by the Board or nomination for election by the
Corporation’s stockholders was approved or recommended by a vote of at
least two-thirds (2/3) of the directors then still in office who either
were directors on the date hereof or whose

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appointment, election or nomination for election was previously so
approved or recommended; or

	 	(c)	 	there is consummated a merger or consolidation
of the Corporation or any direct or indirect subsidiary thereof with
any other corporation (a “Business Combination”), other than a merger
or consolidation (an “Excluded Transaction”) which would result in:

	 	(i)	 	at least a majority of the
members of the board of directors of the resulting or surviving
entity (or any ultimate parent thereof) in such Business
Combination (the “New Board”) consisting of individuals
(“Continuing Directors”) who were members of the Incumbent Board
(as defined in subparagraph (b) above) immediately prior to
consummation of such Business Combination or were appointed,
elected or recommended for appointment or election by members of
the Incumbent Board prior to consummation of such Business
Combination (excluding from Continuing Directors for this
purpose, however, any individual whose election or appointment,
or recommendation for election or appointment, to the New Board
was at the request, directly or indirectly, of the entity which
entered into the definitive agreement providing for such
Business Combination with the Corporation or any direct or
indirect subsidiary thereof), unless the Board
determines, prior to such consummation, that there does not
exist a reasonable assurance that, for at least a two-year
period following consummation of such Business Combination, at
least a majority of the members of the New Board will continue
to consist of Continuing Directors and individuals whose
election, or nomination for election by shareholders of the
resulting or surviving entity (or any ultimate parent thereof)
in such Business Combination, would be approved by a vote of at
least a majority of the Continuing Directors and individuals
whose election or nomination for election has previously been so
approved; or
	 
	 	(ii)	 	a Business Combination that in
substance constitutes a disposition of a division, business
unit, or subsidiary; or

	 	(d)	 	the shareholders of the Corporation approve a
plan of a complete liquidation or dissolution of the Corporation or
there is consummation of a sale or other disposition of all or
substantially all of the assets of the Corporation, other than to a
corporation with respect to which, following such sale or other
disposition, more than 50% of the combined voting power of the then
outstanding voting securities of such corporation entitled to vote
generally in the election of directors is then beneficially owned,
directly or

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indirectly, by all or substantially all of the individuals and
entities who were the beneficial owners of the Corporation’s then
outstanding voting securities immediately prior to such sale or other
disposition in substantially the same proportion as their ownership,
immediately prior to such sale or other disposition, of the
Corporation’s then outstanding voting securities.

	5.	 	Restricted Stock.

	 	A.	 	Restricted Stock Grants. The Committee may grant Restricted Stock to
Participants. A Participant must endorse in blank and return to the Corporation a stock
power for each Restricted Stock grant.
	 
	 	B.	 	Restrictions. During the restriction period a Participant may not
sell, transfer, assign, pledge or otherwise encumber or dispose of Shares of the
Restricted Stock. During the restriction period a Participant shall have all rights
and privileges of a stockholder, including the right to vote the Shares and to receive
dividends, except as noted in the preceding sentence and except that any dividends
payable in stock shall be subject to the restrictions. At the expiration of the
restriction period, a stock certificate free of all restrictions for the number of
Shares of Restricted Stock vested shall be registered in the name of, and delivered to,
the Participant or, subject to the termination provisions below, to the Participant’s
estate.
	 
	 	C.	 	Vesting. The Committee shall determine the restriction period,
provided that (i) Restricted Stock grants which are time-based shall vest ratably over
a period of not less than three years (1/3 on each of the first, second and third grant
date anniversaries), each such year to be considered “Vesting Year” and (ii) Restricted
Stock grants which are performance-based shall vest over a period of not less than one
year.

	D.	 	Termination of Employment.

	 	(1)	 	Retirement, Death, Disability, Termination with
Consent. Unless otherwise determined by the Committee, a prorated number
of the shares of Restricted Stock scheduled to vest during the Vesting Year
will vest, based upon the number of complete months worked during the Vesting
Year in which the Participant’s termination of employment occurs by reason of
Retirement, death, Disability or Termination with Consent. The prorated award
will be calculated upon termination and will vest upon the date of termination.
The remaining unvested shares are forfeited immediately upon termination.

	 	(a)	 	Example: If the 1/3 ratable vesting for
Vesting Year 3 is 1000 shares for Award 1, 1000 shares for Award 2, and
1000 shares for Award 3 and if the Participant terminates employment by
reason of Retirement six months following the Award 3 grants, the
Participant is entitled to vesting of 1/2 of all grants that would have
vested at the end of the Vesting Year during which he or she retires

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(Vesting Year 3 in this example), or 1500 shares. This example
focuses only on the shares that would vest during Vesting Year 3;
however, another 3000 shares would have vested in the aggregate
following Vesting Years 1 and 2, for a total of 4500 shares vesting
under the Awards 1, 2 and 3. The 1500 shares would vest upon the
date of termination.

	 	(2)	 	Termination without Consent and Termination for Cause.
Unless otherwise determined by the Committee, unvested shares of Restricted
Stock are forfeited if termination of employment is due to Termination without
Consent or Termination for Cause.

	 	E.	 	Change of Control. If a Change of Control (as defined in Section
4.(F)(1) hereof) occurs, all Shares of Restricted Stock vest immediately, without
regard to the Participant’s continued employment or termination thereof.

	6.	 	Other Stock-Based Awards: Restricted Stock Units.

	 	A.	 	Restricted Stock Unit Grants. The Committee may grant Other
Stock-Based Awards in the form of Restricted Stock Units to Participants. As
determined by the Committee, consistent with the purposes of the Plan, Restricted Stock
Units shall not be granted in lieu of salary, cash bonus fees or other payments.
	 
	 	B.	 	Restrictions. During the restriction period a Participant may not
sell, transfer, assign, pledge or otherwise encumber or dispose of the Restricted Stock
Units. During the restriction period a Participant shall have none of the rights and
privileges of a stockholder, however, the Participant may be entitled to receive a
payment (in cash or Shares) or credit equal to the cash dividends paid on one Share for
each Share represented by a Restricted Stock Unit held by such Participant (a “dividend
equivalent”); provided, however, the dividend equivalents shall not be paid to, or
vested in, the Participant unless and to the extent the underlying Restricted Stock
Units are vested. Any dividend equivalent paid in Shares shall be paid in the form of
additional whole and/or fractional Restricted Stock Units, subject to the same
restrictions and vesting conditions as the underlying Restricted Stock Units and
settled in the same manner. At the expiration of the restriction period, a stock
certificate free of all restrictions for the number of Shares equivalent to the number
of vested Restricted Stock Units (including any dividend equivalents, in the case of
dividend equivalents paid in Shares) shall be registered in the name of, and delivered
to, the Participant or, subject to the termination provisions below, to the
Participant’s estate. In the case of dividend equivalents paid in cash, a cash payment
will be made at the end of the restriction period equal to the dividends paid on a
number of Shares equivalent to the number of vested Restricted Stock Units.
	 
	 	C.	 	Vesting. The Committee shall determine the restriction period,
provided that (i) Restricted Stock Unit grants which are time-based shall vest ratably
over a period of not less than three years (1/3 on each of the first, second and third
grant date anniversaries), each such year to be considered a “Vesting Year” and (ii)
Restricted

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Stock Unit grants which are performance-based shall vest over a period of not less
than one year.

	D.	 	Termination of Employment.

	 	(1)	 	Retirement, Death, Disability, Termination with
Consent. Unless otherwise determined by the Committee, a prorated number
of the Restricted Stock Units scheduled to vest during the Vesting Year will
vest, based upon the number of complete months worked during the Vesting Year
in which the Participant’s termination of employment occurs by reason of
Retirement, death, Disability or Termination with Consent, excepting any
Termination with Consent by reason of disability other than as that term is
defined under Section 409A, which is to be calculated upon termination and
delivered, subject to the following, upon termination. In the case of any
payment considered to be based upon separation from service, and not
compensation the Participant could receive without separating from service,
then such amounts may not be paid until the first business day of the seventh
month following the date of Participant’s termination if Participant is a
“specified employee” under Section 409A of the Code upon his separation from
service. The remaining unvested shares are forfeited immediately upon
termination.

	 	(a)	 	Example: If the 1/3 ratable vesting for
Vesting Year 3 is 1000 shares for Award 1, 1000 shares for Award 2, and
1000 shares for Award 3 and if the Participant terminates employment by
reason of Retirement six months following the Award 3 grants, the
Participant is entitled to vesting of 1/2 of all grants that would have
vested at the end of the Vesting Year during which he or she retires
(Vesting Year 3 in this example), or 1500 shares. This example focuses
only on the shares that would vest during Vesting Year 3; however,
another 3000 shares would have vested in the aggregate following
Vesting Years 1 and 2, for a total of 4500 shares vesting under the
Awards 1, 2 and 3. The 1500 shares would vest upon the date of
termination.

	 	(2)	 	Termination without Consent and Termination for Cause.
Unless otherwise determined by the Committee, unvested Restricted Stock Units
are forfeited if termination of employment is due to Termination without
Consent or Termination for Cause.

	 	E.	 	Change of Control. If a Change of Control (as defined in Section
4.(F)(1) hereof) occurs, all Restricted Stock Units vest immediately, without regard to
the Participant’s continued employment or termination thereof.

	7.	 	Performance Awards.

	 	A.	 	Performance Periods. Each Performance Period will be approximately
three years in length and may overlap with the Performance Periods for the prior year
and subsequent year Performance Award grants, if any. Each Performance Period

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will begin on the third business day following the public release of the
Corporation’s earnings for the first quarter of the calendar year during which the
Performance Period begins and shall end on the twelfth business day following the
public release of the Corporation’s earnings for the first quarter of the third
calendar year succeeding the calendar year during which the Performance Period
begins (the approximate three year period is referred to herein as the
“Performance Period”).

	B.	 	Performance Goal Establishment/Grant Mechanics. The Committee shall
establish and approve the Performance Goal and the relevant peer group (the “Peer
Group”) for performance comparison purposes at the beginning of each Performance
Period. Unless otherwise determined by the Committee at the beginning of the relevant
Performance Period, the Performance Goal shall be based upon the total shareholder
return performance measure, and the Corporation’s total shareholder return shall be
compared to the total shareholder return of the Peer Group for the Performance Period.

	C.	 	Performance Award Grants. At the beginning of each Performance Period,
the Committee may grant Performance Awards to Participants for such Performance Period
and shall identify for such grants the amount which may be earned based upon the level
of achievement attained (the “Target” award, in the case of attainment of the
target level of performance).

     D. Performance Vesting.

	 	(1)	 	Payout Calculation. Payout shall be based upon the
relative Annualized Total Shareholder Return (“Annualized TSR”) over
the Performance Period.

	 	(a)	 	Annualized TSR = ((Final Price + all dividends
paid during the relevant Performance Period)/Initial Price)^(1/3)-1.
	 
	 	(b)	 	Initial Price = the Average Measurement Period
Price relative to the public release of earnings for first quarter of
the calendar year of grant.
	 
	 	(c)	 	Final Price = the Average Measurement Period
Price relative to the public release of earnings for the first quarter
of the third calendar year succeeding the year of grant.
	 
	 	(d)	 	Average Measurement Period Price = The average
of the Fair Market Values for each of the ten days during the ten
business day period beginning on the third business day following the
public release of earnings for the first quarter of a calendar year.
	 
	 	(e)	 	Stock prices may be determined using (a) any
reputable online stock-quote service, such as Yahoo! Finance or
Bloomberg, or (b) the financial pages of The Wall Street
Journal.

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	(2)	 	Payout Basis. Payout will be based upon the
Corporation’s calculated Annualized TSR compared to the statistical Annualized
TSR for the Peer Group (“Comparative TSR”) using the whole company
ranking method (i.e., including the Corporation within the array of companies
for which TSR is compared). Awards will be evaluated based upon the following
comparison:

	 	(a)	 	Comparative TSR = 25th percentile —> 50% of
Target (the Threshold/Minimum Award).
	 
	 	(b)	 	Comparative TSR = 50th percentile —> 100%
of Target (the Target Award).
	 
	 	(c)	 	Comparative TSR = 75th percentile and above
—> 200% of Target (the Cap/Maximum Award).
	 
	 	(d)	 	Interpolation will be used to determine actual
awards for performance that correlates to an award between Minimum and
Maximum Award levels.
	 
	 	(e)	 	Award payout will follow the end of the
Performance Period (and in no event later than 21/2 months following the
end of the calendar year in which the Performance Period ends, as
provided in the Plan) and the Committee’s written certification of
achievement of Performance Goals, payable in the form of Shares.

	(3)	 	Peer Group Adjustments. At the commencement of the
Performance Period, the Committee may determine that specific guidance be
considered in connection with possible adjustments to the Peer Group involved
in the calculation of the Corporation’s comparative performance with respect to
the Performance Goal during the Performance Period. Any such determination
will be in addition to, or will amend if it conflicts with, the following
guidelines, which will be used in connection with the calculation:

	 	(a)	 	If a Peer Group Company becomes bankrupt, the
bankrupt company will remain in the Peer Group positioned at one level
below the lowest performing non-bankrupt Peer Group Company. In the
case of multiple bankruptcies, the bankrupt companies will be
positioned below the non-bankrupt companies in reverse chronological
order by bankruptcy date.
	 
	 	(b)	 	If a Peer Group Company is acquired by another
company, the acquired Peer Group Company will be removed from the Peer
Group for the entire Performance Period.
	 
	 	(c)	 	If a Peer Group Company sells, spins-off, or
disposes of a portion of its business, the selling Peer Group Company
will remain in the Peer Group for the Performance Period unless such
disposition(s)

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results in the disposition of more than 50% of the company’s total
assets during the Performance Period.

	 	(d)	 	If a Peer Group Company acquires another
company, the acquiring Peer Group Company will remain in the Peer Group
for the Performance Period.
	 
	 	(e)	 	If a Peer Group Company is delisted on all
major stock exchanges, such delisted Peer Group Company will be removed
from the Peer Group for the entire Performance Period.
	 
	 	(f)	 	If the Corporation’s and/or any Peer Group
Company’s stock splits, such company’s TSR performance will be adjusted
for the stock split so as not to give an advantage or disadvantage to
such company by comparison to the other companies, using the principles
set forth in Section 8 of the Plan.

	 	(4)	 	Negative Discretion. The Committee retains negative
discretion to reduce any and all Performance Awards to an amount below the
amount that would be payable as a result of performance measured against the
Performance Goals. The Committee may not increase Performance Awards above the
amount payable as a result of performance measured against the Performance
Goals.
	 
	 	(5)	 	Termination of Employment.

	 	(a)	 	Retirement, Death, Disability, Termination
with Consent. Unless otherwise determined by the Committee, a
prorated value of the Performance Award will vest based upon the number
of complete months worked during the Performance Period, in the event
of a Participant’s termination of employment by reason of Retirement,
death, Disability or Termination with Consent, excepting any
Termination with Consent by reason of disability other than as that
term is defined under Section 409A, to be calculated and delivered at
the end of the relevant Performance Period, provided that the relevant
performance goals are achieved and subject to the Committee’s negative
discretion. In the case of any payment considered to be based upon
separation from service, and not compensation the Participant could
receive without separating from service, then such amounts may not be
paid until the first business day of the seventh month following the
date of Participant’s termination if Participant is a “specified
employee” under Section 409A of the Code upon his separation from
service.

	 	(i)	 	Example: If the Target number of
Shares is 1000 shares for Performance Period 1 Awards, 1000
shares for Performance Period 2 Awards, and 1000 shares for
Performance Period 3 Awards and if the Participant terminates
employment by reason of Retirement six months

12

 

following the first day of Performance Period 3, the
Participant is entitled to vesting of 5/6’s of the
Performance Period 1 awards, 1/2 of the Performance Period 2
awards, and 1/6 of the Performance Period 3 awards (or 1500
shares), subject to the Committee’s determination of the
payout basis for each Performance Period. That is, the above
example assumes that the Committee had determined the
Performance Goals had been met at least to the 100% of Target
level and that the payout basis was 100% of Target for each
period. (Again, the Committee retains its negative
discretion with respect to each Performance Period and with
respect to each Participant and payments, if any, will be
made following the relevant Performance Period.)

	 	(b)	 	Termination without Consent and Termination
for Cause. Unless otherwise determined by the Committee,
Performance Awards will be forfeited immediately if a Participant’s
termination of employment is due to Termination without Consent or
Termination for Cause.

	 	(6)	 	Change of Control. If a Change of Control (as defined
in Section 4.(F)(1) hereof) occurs, all Performance Awards vest immediately at
the greater of 100% of Target and actual performance over the abbreviated
Performance Period without regard to the Participant’s continued employment or
termination thereof.

13EX-10.2

 

Exhibit
10.2

THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES THAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.

Performance Award Grant Agreement

(Long-Term Incentive Compensation Program under the 2005 Stock Incentive Plan)

United States Steel Corporation, a Delaware Corporation, herein called the Corporation, grants to the undersigned employee of the employing company identified
below (the “Grantee”) a Performance Award representing the right to receive a specified number of shares of the common stock of the Corporation (“Shares”) set
forth below, which right, if payable, shall be paid in Shares:

	 	 	 	 	 
	 	 	Name of Grantee:	 	PARTICIPANT NAME
	 
	 	 	 	 
	 

	 	Name of Employing Company
on Date Hereof:
	 	

(the company recognized by the Corporation as employing the Grantee on the date

hereof)
	 
	 	 	 	 
	 

	 	Target Number of Shares
Subject to Award:
	 	

# SHARES
	 
	 	 	 	 
	 

	 	Maximum Number of Shares
Subject to Award:
	 	

(two times the Target Number of Shares Subject to Award)
	 
	 	 	 	 
	 

	 	Performance Period
	 	The approximately three-year period identified by the Compensation Committee in
writing at the time of Grant
	 
	 	 	 	 
	 

	 	Performance Goals
	 	(see Exhibit A, attached)
	 
	 	 	 	 
	 

	 	Date of This Award:
	 	GRANT DATE

By my acceptance, I agree that the above-listed Performance Award is granted under and governed by the terms and conditions of the Corporation’s 2005 Stock
Incentive Plan (the “Plan”), the Corporation’s Administrative Regulations for the Long-Term Incentive Compensation Program (the “Administrative Regulations”),
and the Grant Terms and Conditions contained herein (the “Agreement”) including the special provisions for my country of residence, if any, attached hereto as
Exhibit B, as well as such amendments to the Plan and/or the Administrative Regulations as the Compensation & Organization Committee, or its successor committee
(the “Committee”), may adopt from time to time.
United States Steel Corporation

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Accepted as of the above date: ACCEPTANCE DATE	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	 

Authorized Officer
	 	 
	 	By
	 	PARTICIPANT ES
 

Signature of Grantee
	 	 

Terms and Conditions

     1. Grant of Performance Award:  The Performance Period for purposes of determining whether the Performance Goal has been met shall be the approximately
three-year period determined in accordance with the Administrative Regulations by the Compensation Committee in writing at the time of Grant. The Performance
Goal for purposes of determining whether, and the extent to which, the Performance Award will vest is set forth in Exhibit A to this Agreement. The Peer Group
for purposes of determining whether the Performance Goal has been achieved is the Peer Group identified by the Compensation Committee in writing at the time of
Grant. The Peer Group is subject to adjustment as described in the Administrative Regulations and as the Committee, in its discretion, may additionally set
forth at the commencement of the Performance Period in accordance with Section 162(m) of the U.S. Internal Revenue Code. Exhibit A is incorporated by reference
herein. Subject to the Administrative Regulations and the provisions of this Agreement, the Performance Award shall become payable, if vested, following the
Committee’s determination and certification after the end of the Performance Period, as to whether and the extent to which the Performance Goal has been
achieved; provided that the Committee retains negative discretion to reduce any and all Performance Awards that would otherwise be payable as a result of
performance measured against the Performance Goals. The Committee may not increase the amount payable as a result of performance measured against the
Performance Goals.

     2. Payment of Award: If the Performance Award is payable, the Corporation shall cause a stock certificate to be issued in the Grantee’s name, for no cash
consideration, for the number of shares of common stock of the Corporation determined by the Committee to be payable pursuant to paragraph 1 hereof. Payment
shall be made following the end of the Performance Period, and in no event more than two and one-half months following the end of the calendar year in which the
Performance Period ends.

     3. Transferability: The Grantee shall not sell, transfer, assign, pledge or otherwise encumber or dispose of any portion of the Performance Award and the right
to receive Shares, and any attempt to sell, transfer, assign, pledge or encumber any portion of the Shares prior to the payment, if at all, of a stock
certificate in the name of the Grantee shall have no effect, regardless of whether voluntary, involuntary, by operation of law or otherwise.

     4. Change of Control: Notwithstanding anything to the contrary stated herein, and in lieu of application of Section 9 of the Plan, in the case of a Change of
Control (as defined in Section 4(F)(1) of the Administrative Regulations) of the Corporation, the Performance Period shall automatically end and the Performance
Award shall vest immediately at 100% of Target or, if greater, actual performance over the abbreviated Performance Period, without regard to the Grantee’s
continued employment or termination thereof.

     5. Termination of Employment: Except as otherwise set forth herein, the Performance Award is forfeited if the Grantee terminates employment with the employing
company identified above or the Corporation, its subsidiaries or affiliates (each an “Employing Company”) during the Performance Period due to a Termination
without Consent or Termination for Cause. Any and all forfeitures shall be evidenced by written notice to the Grantee. Notwithstanding the foregoing, if the
Grantee is a party to an individual Change in Control agreement (a “CIC Agreement”) with the Corporation providing for benefits upon a termination for other than
“Cause” or “Disability” or a termination for “Good Reason”, then the Performance Award shall not be forfeited if (i) the Grantee’s employment is terminated
during a Potential Change in Control Period either by the Employing Company for other than “Cause” or “Disability” or by the Grantee for “Good Reason”, as such
terms are defined in the CIC Agreement and (ii) a 409A Change in Control, as defined in the CIC Agreement, occurs within twenty-four months following the
commencement of the Potential Change in Control Period. In such event, (i) the Performance Award will vest in accordance with paragraph 4 hereof if the 409A
Change in Control occurs during the Performance Period, and shall be payable as provided in paragraph 2 hereof, or (ii) the Performance Award will vest in
accordance with actual performance achieved during the Performance Period, and without any downward discretion by the Committee, if the 409A Change in Control
occurs after the end of the Performance Period, and shall be payable within two and one-half months following the end of the calendar year in which vesting
occurs. Notwithstanding the foregoing sentence, in the event such amounts are conditioned upon a separation from service and not compensation the Grantee could
receive without separating from service, then no such payments may be made to Grantee until the first business day of the seventh month following the date of the
Grantee’s termination if grantee is a specified employee under Section 409A of the Code upon his separation from service.”

     6. Vesting: The Grantee must continue as an active employee of an Employing Company during the Performance Period and through the date on which the Committee
certifies whether the Performance Goal relating to the Performance Period has been achieved, subject to the Employing Company’s right to terminate the Grantee’s
employment at any time, performing such duties consistent with his capabilities. A prorated value of the Performance Award will vest based upon the number of
complete months worked by the Grantee during the Performance Period, in the event of a Grantee’s termination of employment during the Performance Period by
reason of Retirement, death, Disability or Termination with Consent, to be calculated and delivered following the end of the relevant Performance Period in
accordance with paragraph 2 hereof, provided that the relevant Performance Goal for the Performance Period is achieved and subject to the Committee’s negative
discretion. The remaining value of the Performance Award is forfeited immediately upon the Grantee’s termination of employment without consideration or further
action being required of the Corporation or the Employing Company.

Except as provided in Section 5 of this Agreement, notwithstanding any other terms or conditions of the Plan, the Administrative Regulations or this Agreement to
the contrary, in the event of the Grantee’s termination of employment, the Grantee’s rights under this Agreement will terminate effective as of the date that the
Grantee is no longer actively employed by an Employing Company and will not be extended by any notice period mandated under local law (e.g., active employment
would not include a period of “garden leave” or similar period pursuant to local law); furthermore, in the event of termination of the Grantee’s employment
(whether or not in breach of local labor laws), the Grantee’s right to receive Shares pursuant to the Performance Award after such termination, if any, will be
measured by the date of termination of the Grantee’s active employment and will not be extended by any notice period mandated under local law; the Committee
shall have the exclusive discretion to determine when the Grantee is no longer actively employed for purposes of the Performance Award.

     7. Adjustments:  The Target and Maximum number of Shares are subject to adjustment as provided in Section 8 of the Plan. The Grantee shall be notified of such
adjustment and such adjustment shall be binding upon the Corporation
and the Grantee.

     8. Interpretation and Amendments: This Grant and the issuance, vesting and delivery of Shares are subject to, and shall be administered in accordance with, the
provisions of the Plan and the Administrative Regulations, as the same may be amended by the Committee from time to time, provided that no amendment may, without
the consent of the Grantee, affect the rights of the Grantee under this Grant in a materially adverse manner. For purposes of the foregoing sentence, an
amendment that affects the tax treatment of the Performance Award shall not be considered as affecting the Grantee’s rights in a materially adverse manner. All
capitalized terms not otherwise defined herein shall have the meaning assigned to such terms in the Plan or the Administrative Regulations. In the event of a
conflict between the Plan and the Administrative Regulations, unless this Grant specifies otherwise, the Plan shall control.

Page 1

 

     9. Compliance with Laws: The obligations of the Corporation and the rights of the Grantee are subject to all applicable laws,
rules and regulations including, without limitation, the U.S. Securities Exchange Act of 1934, as amended; the U.S. Securities
Act of 1933, as amended; the U.S. Internal Revenue Code of 1986, as amended; and any other applicable laws. No Shares will be
issued or delivered to the Grantee under the Plan unless and until there has been compliance with such applicable laws.

     10. Acceptance of Grant: The Grant shall not be effective unless it is accepted by the Grantee and notice of such acceptance
is received by the Stock Plan Officer.

     11. Withholding Taxes: Prior to the relevant taxable event, the Grantee shall pay or make adequate arrangements satisfactory
to the Corporation and/or the Employing Company to satisfy all withholding obligations of the Corporation and/or the Employing
Company. In this regard, the Grantee shall pay any Tax-Related Items directly to the Corporation or the Employing Company in
cash upon request. In addition, the Grantee authorizes the Corporation and/or the Employing Company, at their discretion, to
satisfy the obligations with regard to all applicable Tax-Related Items by one or a combination of the following methods: (1)
withholding from Grantee’s wages or other cash compensation paid to Grantee by the Corporation and/or the Employing Company;
(2) selling or arranging for the sale of a sufficient number of Shares issued upon payment of the Performance Award, on the
Grantee’s behalf and at the Grantee’s direction pursuant to this authorization, through such means as the Corporation may
determine in its sole discretion (whether through a broker or otherwise) equal to the amount required to be withheld; or (3)
withholding from the Shares otherwise issuable to the Grantee the number of Shares with a Fair Market Value, as defined in the
Plan, on the date of the taxable event equal to the amount of the aggregate minimum amount of Tax-Related Items to be so
satisfied, in accordance with procedures established by the Stock Plan Officer. If the Tax-Related Items are satisfied by
reducing the number of Shares issuable upon vesting of the Performance Award, the Grantee is deemed to have been issued the
full number of Shares subject to the Performance Award, notwithstanding that a number of the Shares is held back solely for
the purpose of paying the Tax-Related Items. Finally, the Grantee shall pay to the Corporation or the Employing Company any
amount of Tax-Related Items that the Corporation or the Employing Company may be required to withhold as a result of Grantee’s
participation in the Plan or Grantee’s acquisition of Shares that cannot be satisfied by the means previously described. The
Grantee understands that no Shares shall be delivered to Grantee, notwithstanding the vesting of the Performance Award, unless
and until the Grantee shall have satisfied any obligation for Tax-Related Items with respect thereto as provided herein.

     12. Nature of the Grant: Nothing herein shall be construed as giving Grantee any right to be retained in the employ of an
Employing Company or affect any right that the Employing Company may have to terminate the employment of such Grantee.
Further, by accepting this Performance Award, the Grantee acknowledges that:

	 	a)	 	the grant of the Performance Award is voluntary and occasional and does not create any contractual or other right to
receive future Performance Awards, or benefits in lieu of Performance Awards, even if Performance Awards have been granted
repeatedly in the past;
	 
	 	b)	 	all decisions with respect to future Performance Award grants, if any, will be at the sole discretion of the Committee;
	 
	 	c)	 	the Grantee is voluntarily participating in the Plan;
	 
	 	d)	 	the Performance Award is an extraordinary item which does not constitute compensation of any kind for services of any kind
rendered to the Corporation or to the Employing Company, and which is outside the scope of the Grantee’s employment contract,
if any;
	 
	 	e)	 	the Performance Award is not part of normal or expected compensation or salary for any purpose, including, but not limited
to, calculating any severance, resignation, termination, redundancy, end-of-service payments, bonuses, long-service awards,
pension or retirement benefits or similar payments;
	 
	 	f)	 	in the event that the Employing Company is not the Corporation, the grant of the Performance Award will not be interpreted
to form an employment contract or relationship with the Corporation; and furthermore, the grant of the Performance Award will
not be interpreted to form an employment contract with the Employing Company;
	 
	 	g)	 	the future value of the Shares underlying the Performance Award is unknown and cannot be predicted with certainty;
	 
	 	h)	 	in consideration of the grant of the Performance Award, no claim or entitlement to compensation or damages arises from
termination of the Performance Award or diminution in value of the Performance Award or forfeiture of the Performance Award
resulting from termination of the Grantee’s employment by the Corporation or the Employing Company (for any reason whether or
not in breach of applicable labor laws) and the Grantee irrevocably releases the Corporation and the Employing Company from
any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction
to have arisen then, by accepting this Performance Award, the Grantee shall be deemed irrevocably to have waived his or her
entitlement to pursue such a claim;
	 
	 	i)	 	it is the Grantee’s sole responsibility to investigate and comply with any applicable exchange control laws in connection
with the issuance and delivery of Shares pursuant to the vesting of the Performance Award;
	 
	 	j)	 	the Corporation and the Employing Company are not providing any tax, legal or financial advice, nor are the Corporation or
the Employing Company making any recommendations regarding the Grantee’s participation in the Plan or the Grantee’s
acquisition or sale of the Shares underlying the Performance Award; and
	 
	 	k)	 	the Grantee is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or
her participation in the Plan before taking any action related to the Plan.

     13. Data Privacy: The Grantee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic
or other form, of his or her personal data as described in this document by and among, as applicable, any Employing Company
and the Corporation for the exclusive purpose of implementing, administering and managing the Grantee’s participation in the
Plan.

     The Grantee understands that the Employing Company and the Corporation hold certain personal information about the Grantee,
including, but not limited to, Grantee’s name, home address and telephone number, date of birth, social insurance number or
other identification number, salary, nationality, job title, any Shares or directorships held in the Corporation, details of
all Performance Awards or any other entitlement to Shares awarded, canceled, vested, unvested or outstanding in Grantee’s
favor, as the Employing Company and/or the Corporation deems necessary for the purpose of implementing, administering and
managing the Plan (“Data”). The Grantee acknowledges and understands that Data may be transferred to any broker as designated
by the Corporation and any third parties assisting in the implementation, administration and management of the Plan, that
these recipients may be located in the Grantee’s country or elsewhere (and outside the European Economic Area), and that the
recipient’s country may have different data privacy laws and protections than the Grantee’s country. The Grantee understands
that he or she may request a list with the names and addresses of any potential recipients of the Data by contacting the
Grantee’s local human resources representative. The Grantee authorizes the recipients to receive, possess, use, retain and
transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing the Grantee’s
participation in the Plan, including any requisite transfer of such Data as may be required to a broker or other third party
with whom the Grantee may elect to deposit any Shares acquired upon vesting of the Performance Award. The Grantee understands
that Data will be held only as long as is necessary to implement, administer and manage the Grantee’s participation in the
Plan. The Grantee understands that he or she may, at any time, view Data, request additional information about the storage
and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case
without cost, by contacting in writing his or her local human resources representative. The Grantee understands, however,
that refusing or withdrawing his or her consent may affect his or her ability to realize benefits from the Performance Award
or otherwise participate in the Plan. For more information on the consequences of his or her refusal to consent or withdrawal
of consent, the Grantee understands that he or she may contact his or her local human resources representative.

     14. Electronic Delivery: The Corporation may, in its sole discretion, decide to deliver any documents related to Performance
Awards awarded under the Plan, or Shares issued under the Plan, or participation in the Plan or future Performance Awards that
may be awarded under the Plan by electronic means or request the Grantee’s consent to participate in the Plan by electronic
means. The Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan
through any on-line or electronic system established and maintained by the Corporation or another third party designated by
the Corporation.

     15. Severability: In the event that any provision in this Agreement is held invalid or unenforceable, such provision will be
severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions
of this Agreement.

     16.  Language: If the Grantee has received this Agreement or any other document related to the Plan translated into a language
other than English and if the translated version is different than the English version, the English version will control.

     17. Governing Law: This Agreement shall be construed and enforced in accordance with the laws of the Commonwealth of
Pennsylvania, without regard to the conflicts of laws thereof.

     18.  Headings: Headings of paragraphs and sections used in this Agreement are for convenience only and are not part of this
Agreement, and must not be used in construing it.

Page 2

 

 [Exhibit A to the Performance Award grant form]

EXHIBIT A

Performance Goals* for Performance Period

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Threshold	 	Target	 	Maximum
	 	 	U. S. Steel TSR	 	 	 	 	 	 	 	 	 	 	 	 	 	75th
	Performance	 	Performance Relative	 	< 25th	 	25th	 	50th	 	Percentile or
	Goal	 	to Peer Group	 	Percentile	 	Percentile	 	Percentile	 	Greater
	Payment Levels

	 	% of Target
Shares Vested
	 	 	0	%	 	 	50	%	 	 	100	%	 	 	200	%

	 	•	 	The Performance Goal for this Performance Award grant shall be
the Target percentile determined by the Committee comparing United
States Steel Corporation’s Total Shareholder Return to the Total
Shareholder Returns of the Peer Group companies. The payout shall
be calculated in accordance with the Administrative Regulations for
the Long-Term Incentive Compensation Program under the 2005 Stock
Incentive Plan (the “Administrative Regulations”).

Notes:

	•	 	Amounts for performance between the 25th and 50th and between the
50th and 75th percentiles will be interpolated.
	 
	•	 	Total Shareholder Return (TSR) is calculated in accordance with the Administrative
Regulations.
	 
	•	 	Peer Group — As determined by the Compensation Committee at the time of grant.

A-1

 

EXHIBIT B

Additional Terms and Conditions of the

United States Steel Corporation 2005 Stock Incentive Plan

Performance Award Grant Agreement

TERMS AND CONDITIONS

This Exhibit B includes additional terms and conditions that govern the Performance Award granted
to the Grantee under the Plan if he or she resides in one of the countries listed below. Certain
capitalized terms used but not defined in this Exhibit B have the meanings set forth in the Plan,
the Administrative Regulations and/or the Agreement.

NOTIFICATIONS

This Exhibit B also includes information regarding exchange controls and certain other issues of
which the Grantee should be aware with respect to participation in the Plan. The information is
based on the laws in effect in the applicable countries as of April 2008. Such laws are often
complex and change frequently. As a result, the Corporation strongly recommends that the Grantee
not rely on the information in this Exhibit B as the only source of information relating to the
consequences of his or her participation in the Plan because the information may be out of date at
the time that the Grantee vests in the Performance Award or sells Shares acquired under the Plan.

In addition, the information contained herein is general in nature and may not apply to the
Grantee’s particular situation, and the Corporation is not in a position to assure the Grantee of a
particular result. Accordingly, the Grantee is advised to seek appropriate professional advice as
to how the relevant laws in his or her country may apply to the Grantee’s situation.

Finally, if the Grantee is a citizen or resident of a country other than the one in which he or she
is currently working, the information contained herein may not be applicable.

CANADA

TERMS AND CONDITIONS

Securities Law Commitment on Sale of Shares. As a condition of the grant of the Performance Award
and the issuance of any Shares upon vesting of the Performance Award, the Grantee undertakes to
only sell, trade or otherwise dispose of any Shares issued to the Grantee under the Plan in
accordance with applicable Canadian securities laws. Under current laws, this means that the
Grantee will need to sell any Shares issued under the Plan using the services of a broker or dealer
that is registered under Canadian provincial or territorial securities legislation. The Grantee
will not be permitted to sell, trade or otherwise dispose of his or her Shares through the
Company’s designated U.S. plan broker, Fidelity Investments, unless such sale, trade or disposal
can be executed in accordance with applicable securities laws. As legal requirements may be
subject to change, Grantees are encouraged to seek specific advice about their individual situation
before taking any action with respect to Shares issued to them under the Plan.

By accepting this Performance Award, the Grantee expressly agrees that he or she will consult with
a personal legal advisor to address any questions that may arise regarding compliance with this
requirement. The Grantee understands and agrees that he or she will be liable for any failure to
comply with the foregoing provision.

SERBIA

NOTIFICATIONS

Exchange Control Information. Pursuant to the Law on Foreign Exchange Transactions (effective July
27, 2006), Serbian residents may freely acquire Shares under the Plan, however, the National Bank
of Serbia requires reporting of the acquisition of such Shares, the value of the Shares at payment
and, on a quarterly basis, any changes in the value of the underlying Shares. The Grantee is
advised to consult with a personal legal advisor to determine his or her reporting obligations upon
the acquisition of Shares under the Plan. The Corporation reserves the right to require the
Grantee to report details of the sale of his or her Shares to the Corporation or to follow such
other procedures as may be established by the Corporation to comply with applicable exchange
control regulations.

SLOVAK REPUBLIC

NOTIFICATIONS

Exchange Control Information. The Grantee is required to notify the National Bank of Slovakia with
respect to the establishment of accounts abroad within 15 days after the end of the calendar year
(effective from January 1, 2007). The notification forms may be found at the Slovak National Bank
website as follows: www.nbs.sk. The Grantee should consult with a personal legal advisor to
determine which forms the Grantee will be required to submit and when they will be due.

B-1

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