Document:

EXHIBIT 4.1

 

EXECUTION COPY

 

 

 

BA CREDIT CARD TRUST

 

as Issuer

 

CLASS A(2015-2) TERMS
DOCUMENT

 

dated as of April 29, 2015

 

to

 

SECOND AMENDED AND RESTATED BASERIES
INDENTURE SUPPLEMENT

 

dated as of October 1, 2014

 

to

 

THIRD AMENDED AND RESTATED INDENTURE

 

dated as of October 1, 2014

 

THE BANK OF NEW YORK MELLON

 

as Indenture Trustee

 

 

 

    	 

    	 

    

TABLE OF CONTENTS

 

	 	Page
	ARTICLE I   Definitions And Other Provisions Of General Application	1
	Section 1.01.   Definitions	1
	Section 1.02.   Governing Law; Submission to Jurisdiction; Agent for Service of Process	5
	Section 1.03.   Counterparts	6
	Section 1.04.   Ratification of Indenture and Indenture Supplement	6
	ARTICLE II   The Class A(2015-2) Notes	7
	Section 2.01.   Creation and Designation	7
	Section 2.02.   Specification of Required Subordinated Amount and other Terms	7
	Section 2.03.   Interest Payment	7
	Section 2.04.   Payments of Interest and Principal	8
	Section 2.05.   Form of Delivery of Class A(2015-2) Notes; Depository; Denominations	8
	Section 2.06.   Delivery and Payment for the Class A(2015-2) Notes	8
	Section 2.07.   Targeted Deposits to the Accumulation Reserve Account	8
	ARTICLE III   Representations and Warranties	10
	Section 3.01.   Issuer’s Representations and Warranties	10

    	i

    	 

    

 

THIS CLASS A(2015-2)
TERMS DOCUMENT (this “Terms Document”), by and between BA CREDIT CARD TRUST, a statutory trust created under
the laws of the State of Delaware (the “Issuer”), having its principal office at Rodney Square North, 1100 North
Market Street, Wilmington, Delaware 19890, and THE BANK OF NEW YORK MELLON, a New York banking corporation, as Indenture Trustee
(the “Indenture Trustee”), is made and entered into as of April 29, 2015.

 

Pursuant to this Terms
Document, the Issuer and the Indenture Trustee shall create a new tranche of Class A Notes and shall specify the principal
terms thereof.

 

ARTICLE I

Definitions and Other Provisions of General Application

 

Section 1.01.     Definitions.  
For all purposes of this Terms Document, except as otherwise expressly provided or unless the context otherwise requires:

 

		(1)	the terms defined in this Article have the meanings assigned to them in this Article, and
include the plural as well as the singular;

 

		(2)	all other terms used herein which are defined in the Second Amended and Restated BAseries Indenture
Supplement, dated as of October 1, 2014 (as modified, amended or supplemented from time to time, the “Indenture Supplement”),
between the Issuer and the Indenture Trustee, or the Third Amended and Restated Indenture, dated as of October 1, 2014 (as
modified, amended or supplemented from time to time, the “Indenture”), between the Issuer and the Indenture
Trustee, as acknowledged and accepted by BANA, as Servicer, either directly or by reference therein, have the meanings assigned
to them therein;

 

		(3)	all accounting terms not otherwise defined herein have the meanings assigned to them in accordance
with generally accepted accounting principles and, except as otherwise herein expressly provided, the term “generally accepted
accounting principles” with respect to any computation required or permitted hereunder means such accounting principles as
are generally accepted in the United States of America at the date of such computation;

 

		(4)	all references in this Terms Document to designated “Articles,” “Sections”
and other subdivisions are to the designated Articles, Sections and other subdivisions of this Terms Document as originally executed;

 

		(5)	the words “herein,” “hereof” and “hereunder” and other words
of similar import refer to this Terms Document as a whole and not to any particular Article, Section or other subdivision;

 

    	 

    	 

    

		(6)	in the event that any term or provision contained herein shall conflict with or be inconsistent
with any term or provision contained in the Indenture Supplement or the Indenture, the terms and provisions of this Terms Document
shall be controlling;

 

		(7)	each capitalized term defined herein shall relate only to the Class A(2015-2) Notes and
no other tranche of Notes issued by the Issuer; and

 

		(8)	“including” and words of similar import will be deemed to be followed by “without
limitation.”

 

“Accumulation
Reserve Funding Period” shall mean, (a) if the Accumulation Period Length is determined to be one (1) month, there
shall be no Accumulation Reserve Funding Period and (b) otherwise, the period (x) commencing on the earliest to occur of (i) the
Monthly Period beginning three (3) calendar months prior to the first Transfer Date for which a budgeted deposit is targeted to
be made into the Principal Funding sub-Account of the Class A(2015-2) Notes pursuant to Section 3.10(b) of
the Indenture Supplement, (ii) the Monthly Period following the first Transfer Date following and including the March 2016
Transfer Date for which the Quarterly Excess Available Funds Percentage is less than 2%, but in such event the Accumulation Reserve
Funding Period shall not be required to commence earlier than 24 months prior to the Expected Principal Payment Date, (iii) the
Monthly Period following the first Transfer Date following and including the September 2016 Transfer Date for which the Quarterly
Excess Available Funds Percentage is less than 3%, but in such event the Accumulation Reserve Funding Period shall not be required
to commence earlier than 18 months prior to the Expected Principal Payment Date, and (iv) the Monthly Period following the
first Transfer Date following and including the November 2016 Transfer Date for which the Quarterly Excess Available Funds Percentage
is less than 4%, but in such event the Accumulation Reserve Funding Period shall not be required to commence earlier than 16 months
prior to the Expected Principal Payment Date and (y) ending on the close of business on the last day of the Monthly Period preceding
the earlier to occur of (i) the Expected Principal Payment Date for the Class A(2015-2) Notes and (ii) the date
on which the Class A(2015-2) Notes are paid in full.

 

“Base Rate”
means, with respect to any Monthly Period, the sum of (i) the Weighted Average Interest Rates for the Outstanding BAseries
Notes and the Class D Certificate (as such term is defined in the Series 2001-D Supplement), (ii) the Net Servicing
Fee Rate (as such term is defined in the Series 2001-D Supplement) and (iii) so long as BANA or The Bank of New York
Mellon is the Servicer, the Servicer Interchange Rate, in each case, for such Monthly Period.

 

“BAseries Servicer
Interchange” means, with respect to any Monthly Period, an amount equal to the product of (a) the Servicer Interchange
(as such term is defined in the Series 2001-D Supplement) with respect to such Monthly Period and (b) a fraction
the numerator of which is the Weighted Average Available Funds Allocation Amount for the BAseries for such Monthly Period and the
denominator of which is the Weighted Average Available Funds Allocation Amount for all series of Notes for such Monthly Period.

 

    	- 2 -

    	 

    

“Class A(2015-2)
Note” means any Note, substantially in the form set forth in Exhibit A-1 to the Indenture Supplement, designated
therein as a Class A(2015-2) Note and duly executed and authenticated in accordance with the Indenture.

 

“Class A(2015-2)
Noteholder” means a Person in whose name a Class A(2015-2) Note is registered in the Note Register.

 

“Class A(2015-2)
Termination Date” means the earliest to occur of (a) the Principal Payment Date on which the Outstanding Dollar
Principal Amount of the Class A(2015-2) Notes is paid in full, (b) the Legal Maturity Date and (c) the date
on which the Indenture is discharged and satisfied pursuant to Article VI thereof.

 

“Class A
Required Subordinated Amount of Class B Notes” is defined in Section 2.02(a).

 

“Class A
Required Subordinated Amount of Class C Notes” is defined in Section 2.02(b).

 

“Controlled
Accumulation Amount” means $100,000,000.00; provided, however, if the Accumulation Period Length is determined
to be less than twelve (12) months pursuant to Section 3.10(b)(ii) of the Indenture Supplement, the Controlled
Accumulation Amount shall be the amount specified in the definition of “Controlled Accumulation Amount” in the Indenture
Supplement.

 

“Excess Available
Funds Percentage” means, with respect to any Transfer Date, the amount, if any, by which the Portfolio Yield for the
preceding Monthly Period exceeds the Base Rate for such Monthly Period.

 

“Expected Principal
Payment Date” means April 16, 2018.

 

“Initial Dollar
Principal Amount” means $1,200,000,000.

 

“Interest Payment
Date” means the fifteenth day of each month, or if such fifteenth day is not a Business Day, the next succeeding Business
Day, commencing June 15, 2015.

 

“Interest Period”
means, with respect to any Interest Payment Date, the period from and including the previous Interest Payment Date (or in the case
of the initial Interest Payment Date, from and including the Issuance Date) through the day preceding such Interest Payment Date.

 

“Issuance Date”
means April 29, 2015.

 

    	- 3 -

    	 

    

“Legal Maturity
Date” means September 15, 2020.

 

“Note Interest
Rate” means a per annum rate equal to 1.36%.

 

“Paying Agent”
means The Bank of New York Mellon.

 

“Portfolio Yield”
means, with respect to any Monthly Period, the annualized percentage equivalent of a fraction, the numerator of which is (a) the
amount of Available Funds allocated to the BAseries pursuant to Section 501 of the Indenture, plus (b) the amount of
Available Funds distributed pursuant to Sections 4.06(a)(ii) and (iii) of the Series 2001-D Supplement, plus
(c) any Interest Funding sub-Account Earnings on the related Transfer Date, plus (d) any amounts to be treated as
BAseries Available Funds pursuant to Sections 3.20(d) and 3.27(a) of the Indenture Supplement, plus (e) the BAseries
Servicer Interchange for such Monthly Period, minus (f) the excess, if any, of the sum of the PFA Prefunding Earnings Shortfall
plus the PFA Accumulation Earnings Shortfall over the sum of the aggregate amount to be treated as BAseries Available Funds for
such Monthly Period pursuant to Sections 3.04(a)(ii) and 3.25(a) of the Indenture Supplement plus any other amounts applied
to cover earnings shortfalls on amounts in the Principal Funding sub-Account for any tranche of BAseries Notes for such Monthly
Period, minus (g) the BAseries Investor Default Amount for such Monthly Period, minus (h) the Aggregate Class D
Investor Default Amount (as such term is defined in the Series 2001-D Supplement) for such Monthly Period, and the denominator
of which is the Weighted Average Floating Allocation Investor Interest (as such term is defined in the Series 2001-D Supplement)
for such Monthly Period.

 

“Predecessor
Note” means, with respect to any particular Note, every previous Note evidencing all or a portion of the same debt as
that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 306
of the Indenture in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated,
lost, destroyed or stolen Note.

 

“Quarterly Excess
Available Funds Percentage” means, with respect to the March 2016 Transfer Date and each Transfer Date thereafter, the
percentage equivalent of a fraction the numerator of which is the sum of the Excess Available Funds Percentages with respect to
the immediately preceding three Monthly Periods and the denominator of which is three.

 

“Record Date”
means, for any Transfer Date, the last day of the preceding Monthly Period.

 

“Required Accumulation
Reserve sub-Account Amount” means, with respect to any Monthly Period during the Accumulation Reserve Funding Period,
an amount equal to (i) 0.5% of the Outstanding Dollar Principal Amount of the Class A(2015-2) Notes as of the close
of business on the last day of the preceding Monthly Period or (ii) any other amount designated by the Issuer; provided,
however, that if such designation is of a lesser amount, the Note Rating Agencies shall have provided prior written confirmation
that a Ratings Effect will not occur with respect to such change.

 

    	- 4 -

    	 

    

“Servicer Interchange
Rate” means, for any Monthly Period, the percentage equivalent of a fraction, the numerator of which is the BAseries
Servicer Interchange for such Monthly Period, and the denominator of which is the Weighted Average Floating Allocation Investor
Interest (as such term is defined in the Series 2001-D Supplement) for such Monthly Period.

 

“Stated Principal
Amount” means $1,200,000,000.

 

“Weighted Average
Interest Rates” means, with respect to any Outstanding Notes of a class or tranche of the BAseries or the Class D
Certificate (as such term is defined in the Series 2001-D Supplement), or of all of the Outstanding Notes of the BAseries
and the Class D Certificate, on any date, the weighted average (weighted based on the Outstanding Dollar Principal Amount
of the related Notes on such date or, in the case of the Class D Certificate, based on the Class D Investor Interest
(as such term is defined in the Series 2001-D Supplement) on such date) of the following rates of interest:

 

(a)in the case of
the Class D Certificate or a tranche of Dollar Interest-bearing Notes with no Derivative Agreement for interest, the rate
of interest applicable to that tranche or the Class D Certificate on that date;

 

(b)in the case of
a tranche of Discount Notes, the rate of accretion (converted to an accrual rate) of that tranche on that date;

 

(c)in the case of
a tranche of Notes with a payment due under a Performing Derivative Agreement for interest, the rate at which payments by the Issuer
to the applicable Derivative Counterparty accrue on that date (prior to the netting of such payments, if applicable); and

 

(d)in the case of
a tranche of Notes with a non-Performing Derivative Agreement for interest, the rate specified for that date in the related terms
document.

 

Section 1.02.     Governing
Law; Submission to Jurisdiction; Agent for Service of Process.  This Terms Document shall be governed by and construed in accordance
with the laws of the State of Delaware, without regard to principles of conflict of laws. The parties hereto declare that it is
their intention that this Terms Document shall be regarded as made under the laws of the State of Delaware and that the laws of
said State shall be applied in interpreting its provisions in all cases where legal interpretation shall be required. Each of the
parties hereto agrees (a) that this Terms Document involves at least $100,000.00, and (b) that this Terms Document has
been entered into by the parties hereto in express reliance upon 6 DEL. C. § 2708. Each of the parties
hereto hereby irrevocably and unconditionally agrees (a) to be subject to the jurisdiction of the courts of the State of Delaware
and of the federal courts sitting in the State of Delaware, and (b)(1) to the extent such party is not otherwise subject to
service of process in the State of Delaware, to appoint and maintain an agent in the State of Delaware as such party’s agent
for acceptance of legal process, and (2) that, to the fullest extent permitted by applicable law, service of process may also
be made on such party by prepaid certified mail with a proof of mailing receipt validated by the United States Postal Service constituting
evidence of valid service, and that service made pursuant to (b)(1) or (2) above shall, to the fullest extent permitted by applicable
law, have the same legal force and effect as if served upon such party personally within the State of Delaware.

 

    	- 5 -

    	 

    

Section 1.03.     Counterparts.  
This Terms Document may be executed in any number of counterparts, each of which so executed will be deemed to be an original,
but all such counterparts will together constitute but one and the same instrument.

 

Section 1.04.     Ratification
of Indenture and Indenture Supplement.   As supplemented by this Terms Document, each of the Indenture and the Indenture Supplement
is in all respects ratified and confirmed and the Indenture as so supplemented by the Indenture Supplement as so supplemented and
this Terms Document shall be read, taken and construed as one and the same instrument.

 

[END
OF ARTICLE I]

    	- 6 -

    	 

    

 

ARTICLE II

The Class A(2015-2) Notes

 

Section 2.01.     Creation and
Designation.   There is hereby created a tranche of BAseries Class A Notes to be issued pursuant to the Indenture and the
Indenture Supplement to be known as the “BAseries Class A(2015-2) Notes.”

 

Section 2.02.     Specification
of Required Subordinated Amount and other Terms.

 

(a)For the Class A(2015-2)
Notes for any date of determination, the Class A Required Subordinated Amount of Class B Notes will be an amount equal
to 14.28571% of (i) the Adjusted Outstanding Dollar Principal Amount of the Class A(2015-2) Notes on such date or
(ii) if an Early Redemption Event with respect to the Class A(2015-2) Notes shall have occurred, if an Event of Default
and acceleration of the Class A(2015-2) Notes shall have occurred or if the Class A Usage of the Class B Required
Subordinated Amount for such tranche of Class A Notes is greater than zero, the Adjusted Outstanding Dollar Principal Amount
of the Class A(2015-2) Notes as of close of business on the day immediately preceding the occurrence of such Early Redemption
Event, such Event of Default and acceleration or the date on which the Class A Usage of Class B Required Subordinated
Amount exceeded zero.

 

(b)For the Class A(2015-2)
Notes for any date of determination, the Class A Required Subordinated Amount of Class C Notes will be an amount equal
to 12.69841% of (i) the Adjusted Outstanding Dollar Principal Amount of the Class A(2015-2) Notes on such date or
(ii) if an Early Redemption Event with respect to the Class A(2015-2) Notes shall have occurred, if an Event of Default
and acceleration of the Class A(2015-2) Notes shall have occurred or if the Class A Usage of the Class C Required
Subordinated Amount for such tranche of Class A Notes is greater than zero, the Adjusted Outstanding Dollar Principal Amount
of the Class A(2015-2) Notes as of close of business on the day immediately preceding the occurrence of such Early Redemption
Event, such Event of Default and acceleration or the date on which the Class A Usage of Class C Required Subordinated
Amount exceeded zero.

 

(c)The Issuer may
change the percentages set forth in clause (a) or (b) above without the consent of any Noteholder so long as the Issuer has (i) received
written confirmation from each Note Rating Agency that has rated any Outstanding Notes of the BAseries that the change in either
of such percentages will not result in a Ratings Effect with respect to any Outstanding Notes of the BAseries and (ii) delivered
to the Indenture Trustee and the Note Rating Agencies a Master Trust Tax Opinion and an Issuer Tax Opinion.

 

Section 2.03.     Interest Payment.

 

(a)For each Interest
Payment Date (other than the first Interest Payment Date), the amount of interest due with respect to the Class A(2015-2)
Notes shall be an amount equal to one-twelfth of the product of (i) the Note Interest Rate, times (ii) the Outstanding Dollar
Principal Amount of the Class A(2015-2) Notes determined as of the Record Date preceding the related Transfer Date; provided,
however, that for the first Interest Payment Date the amount of interest due is $2,085,333.33. Interest on the Class A(2015-2)
Notes will be calculated on the basis of a 360-day year and twelve 30-day months.

 

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(b)Pursuant to Section 3.03
of the Indenture Supplement, on each Transfer Date, the Indenture Trustee shall deposit into the Class A(2015-2) Interest
Funding sub-Account the portion of BAseries Available Funds allocable to the Class A(2015-2) Notes.

 

Section 2.04.     Payments of
Interest and Principal.

 

Any installment of interest
or principal, if any, payable on any Class A(2015-2) Note which is punctually paid or duly provided for by the Issuer
and the Indenture Trustee on the applicable Interest Payment Date or Principal Payment Date shall be paid by the Paying Agent to
the Person in whose name such Class A(2015-2) Note (or one or more Predecessor Notes) is registered on the Record Date,
by wire transfer of immediately available funds to such Person’s account as has been designated by written instructions received
by the Paying Agent from such Person not later than the close of business on the third Business Day preceding the date of payment
or, if no such account has been so designated, by check mailed first-class, postage prepaid to such Person’s address as it
appears on the Note Register on such Record Date, except that with respect to Notes registered on the Record Date in the name of
the nominee of Cede & Co., payment shall be made by wire transfer in immediately available funds to the account designated
by such nominee.

 

The right of the Class A(2015-2)
Noteholders to receive payments from the Issuer will terminate on the first Business Day following the Class A(2015-2)
Termination Date.

 

Section 2.05.     Form of Delivery
of Class A(2015-2) Notes; Depository; Denominations.

 

(a)The Class A(2015-2)
Notes shall be delivered in the form of a global Registered Note as provided in Sections 202 and 301(i) of
the Indenture, respectively.

 

(b)The Depository
for the Class A(2015-2) Notes shall be The Depository Trust Company, and the Class A(2015-2) Notes shall initially
be registered in the name of Cede & Co., its nominee.

 

(c)The Class A(2015-2)
Notes will be issued in minimum denominations of $5,000 and multiples of $1,000 in excess of that amount.

 

Section 2.06.     Delivery and
Payment for the Class A(2015-2) Notes. The Issuer shall execute and deliver the Class A(2015-2) Notes to
the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class A(2015-2) Notes when authenticated,
each in accordance with Section 303 of the Indenture.

 

    	- 8 -

    	 

    
Section 2.07.     Targeted Deposits
to the Accumulation Reserve Account.

 

The deposit targeted
to be made to the Accumulation Reserve Account for any Monthly Period during the Accumulation Reserve Funding Period will be an
amount equal to the Required Accumulation Reserve sub-Account Amount.

 

[END
OF ARTICLE II]

    	- 9 -

    	 

    

ARTICLE III

Representations and Warranties

 

Section 3.01.     Issuer’s
Representations and Warranties.   The Issuer makes the following representations and warranties as to the Collateral Certificate
on which the Indenture Trustee is deemed to have relied in acquiring the Collateral Certificate. Such representations and warranties
speak as of the execution and delivery of this Terms Document, but shall survive until the termination of this Terms Document.
Such representations and warranties shall not be waived by any of the parties to this Terms Document unless the Issuer has obtained
written confirmation from each Note Rating Agency that there will be no Ratings Effect with respect to such waiver.

 

(a)The Indenture
creates a valid and continuing security interest (as defined in the Delaware UCC) in the Collateral Certificate in favor of the
Indenture Trustee, which security interest is prior to all other liens, and is enforceable as such as against creditors of and
purchasers from the Issuer.

 

(b)The Collateral
Certificate constitutes either an “account,” a “general intangible,” an “instrument,” or a
“certificated security,” each within the meaning of the Delaware UCC.

 

(c)At the time of
the transfer and assignment of the Collateral Certificate to the Indenture Trustee pursuant to the Indenture, the Issuer owned
and had good and marketable title to the Collateral Certificate free and clear of any lien, claim or encumbrance of any Person.

 

(d)The Issuer has
caused, within ten days of the execution of the Indenture, the filing of all appropriate financing statements in the proper filing
office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the Collateral Certificate
granted to the Indenture Trustee pursuant to the Indenture.

 

(e)Other than the
security interest granted to the Indenture Trustee pursuant to the Indenture, the Issuer has not pledged, assigned, sold, granted
a security interest in, or otherwise conveyed the Collateral Certificate. The Issuer has not authorized the filing of and is not
aware of any financing statements against the Issuer that include a description of collateral covering the Collateral Certificate
other than any financing statement relating to the security interest granted to the Indenture Trustee pursuant to the Indenture
or any financing statement that has been terminated. The Issuer is not aware of any judgment or tax lien filings against the Issuer.

 

(f)All original executed
copies of the Collateral Certificate have been delivered to the Indenture Trustee.

 

    	- 10 -

    	 

    

(g)At the time of
the transfer and assignment of the Collateral Certificate to the Indenture Trustee pursuant to the Indenture, the Collateral Certificate
had no marks or notations indicating that it has been pledged, assigned or otherwise conveyed to any Person other than the Indenture
Trustee.

 

[END
OF ARTICLE III]

 

    	- 11 -

    	 

    

IN WITNESS WHEREOF, the
parties hereto have caused this Terms Document to be duly executed, all as of the day and year first above written.

 

	 	 BA CREDIT CARD TRUST,
	 	 by BA CREDIT CARD FUNDING, LLC,
	 	 as Beneficiary and not in its individual capacity
	 	 
	 	 
	 	 By:	 /s/ Keith W. Landis
	 	 Name:	 Keith W. Landis
	 	 Title:	 Vice President

 

    	[Signature Page to the Class A(2015-2) Terms Document]

    	 

    

 

	 	 THE BANK OF NEW YORK MELLON, as
	 	 Indenture Trustee
	 	 and not in its individual capacity
	 	 
	 	 
	 	 By:	 /s/ Leslie Morales
	 	 Name:	 Leslie Morales
	 	 Title:	 Vice President

 

    	[Signature Page to the Class A(2015-2) Terms Document]Exh. 10.1 Form of Non-Qual Stock Option Agreement, 2005 Stock Incentive Plan

Exhibit 10.1

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

Non-Qualified Stock Option Grant Agreement
(Long-Term Incentive Compensation Program under the 2005 Stock Incentive Plan)
NOT TRANSFERABLE EXCEPT BY WILL OR BY THE LAWS GOVERNING THE DESCENT AND DISTRIBUTION OF ESTATES

Non-Qualified Stock Option granted by United States Steel Corporation, a Delaware corporation (the “Corporation”), to the optionee identified below (the “Optionee”).

	
		
	Name of Optionee:
	PARTICIPANT NAME

	 
	 

	Name of Employing Company
	 

	on Date Hereof:
	(the company recognized by the Corporation as employing the Optionee on the date hereof)

	 
	 

	Number of Shares Subject to Purchase:
	# SHARES

	 
	 

	Exercise Price of Each Share:
	GRANT PRICE

	 
	 

	Date of This Option:
	GRANT DATE

By my acceptance, I agree that this option (the “Option”) is granted under and governed by the terms and conditions of the Corporation’s 2005 Stock Incentive Plan, as amended and restated (the “Plan”), the Corporation’s Administrative Procedures for the Long-Term Incentive Compensation Program (the “Administrative Procedures”), 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 A, as well as such amendments to the Plan and/or the Administrative Procedures 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
	 
	 
	By
	PARTICIPANT ES
	 

	 
	Authorized Officer
	 
	 
	Signature of Optionee
	 

Terms and Conditions
1.    Grant:  Subject to the terms and conditions of the Plan, the Administrative Procedures and this Agreement, the Corporation agrees that the Optionee has the right to purchase the number of shares of Common Stock of the Corporation set forth in this Option grant for the exercise price stated herein.
2.    Continuous Employment Requirement:  Subject to Sections 3 and 5, in order to vest in the Options, Optionee agrees that Optionee must continue as an active employee of the employing company identified above or the Corporation, its Subsidiaries or affiliates (each an “Employing Company”) through the vesting dates set forth in Section 3 and for a total period of three years from the date of the Option, subject to the Employing Company’s right to terminate the Optionee’s employment at any time. 
3.    Vesting and Termination of Employment:  The Option will become exercisable in annual installments over a three-year vesting period according to the following vesting schedule: 1/3 of the Option shares shall vest upon the 1st anniversary of the date of the Option, provided that the Optionee is employed by an Employing Company on such anniversary; an additional 1/3 of the Option shares will vest upon the 2nd anniversary of the date of the Option, provided that the Optionee is employed by an Employing Company on such anniversary; and an additional 1/3 of the Option shares will vest on the 3rd anniversary of the date of the Option, provided that the Optionee is employed by an Employing Company on such anniversary, with all fractional Option shares, if any, vesting as whole Option shares upon the latest vesting date.  Any portion of the Option that is exercisable may be exercised in whole or in part from time to time during the Option period.  In the event of the exercise of the Option in whole or in part, the portion of the Option so exercised shall terminate.  The Option period shall begin on the date of the Option and shall end, except as provided in Section 5 hereof, on the first to occur of: (a) ten years thereafter, (b) three years after the date upon which the Optionee ceases to be an employee of an Employing Company by reason of Retirement, death, Disability or Termination with Consent, (c) immediately following termination of employment, if termination of employment is due to Termination for Cause, or (d) ninety (90) days following the date of termination of employment, if termination of employment is due to Termination without 

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Consent.  Unless otherwise determined by the Committee, all unvested Options will immediately vest upon the Optionee’s death during employment or termination of employment by reason of Disability.  Unless otherwise determined by the Committee, a prorated number of the Options scheduled to vest during the current Vesting Year will vest on the vesting date for the current Vesting Year or, if earlier, immediately upon the Optionee’s death, based upon the number of complete months worked during the Vesting Year in which the Optionee’s termination of employment occurs by reason of Retirement or Termination with Consent.  Except as provided in Section 5, the remaining unvested Options are forfeited immediately upon the Optionee’s termination of employment without consideration or further action required of the Corporation or Employing Company.  

Except as provided in Section 5, and notwithstanding any terms or conditions of the Plan, the Administrative Procedures or this Agreement to the contrary, in the event of the Optionee’s termination of employment, regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Optionee is employed or the terms of the Optionee's employment agreement, if any: (1) the Optionee’s right to vest in the Option, if any, will terminate effective as of the date that the Optionee is no longer actively employed by an Employing Company and will not be extended by any notice period (i.e., active employment would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where the Optionee is employed or the terms of the Optionee's employment agreement, if any - collectively referred to herein as any “Notice Period”); and (2) the period (if any) during which the Optionee may exercise the Option after such termination of employment will commence on the date the Optionee ceases to actively employed and will not be extended by any Notice Period; the Committee shall have the exclusive discretion to determine when the Optionee is no longer actively employed for purposes of the Option.
4.    Payment of Exercise Price:  The exercise price shall be paid in cash or such other form of consideration as permitted in the Plan and the Administrative Procedures, including through the withholding of shares to be acquired upon exercise of the Option, subject to the Stock Plan Officer’s establishment of procedures with respect thereto; provided however that, if the Optionee is subject to taxation on the benefit received from the Option in a jurisdiction outside the United States, the Optionee may not pay the exercise price by surrendering shares of Common Stock that he or she already owns or attesting to the ownership of shares of Common Stock.  The Corporation reserves the right to restrict the methods of payment of the exercise price if necessary to comply with applicable local law, as determined by the Corporation in its sole discretion.
5.    Change of Control:  If the Optionee’s employment is terminated within two years following a Change of Control involuntarily (except for Cause) or, in the case of participants designated as executive management at the time of the Change of Control, voluntarily for Good Reason, each unvested Option will immediately vest and remain exercisable until the end of its term. 
6.    Transferability:  During the Optionee’s lifetime, to the extent the Option is exercisable, the Option may be exercised only by the Optionee or by the Optionee’s guardian or legal representative. Upon the Optionee’s death, the Option may be transferred by will or by the laws governing the descent and distribution of the Optionee’s estate. Otherwise, the Option may not be transferred, pledged or encumbered and, in the event of an attempt to transfer, pledge or encumber it, the Committee may cancel it. 
7.    Adjustments and Recoupment:  The number of shares subject to the Option and the Option exercise price per share shall be subject to adjustment as provided in Section 8 of the Plan.  The Optionee shall be notified of such adjustment and such adjustment shall be binding upon the Corporation and the Optionee.  Consistent with Section 10 of this Agreement, this grant shall be administered in accordance with, and is subject to, any recoupment policies and provisions prescribed by the Plan and/or the Administrative Procedures at the time of such grant; notwithstanding the foregoing, this grant shall be subject to all recoupment provisions required by law from time to time.  In its sole discretion, the Committee shall have the authority to amend, waive or apply the terms of any recoupment policies or provisions not required by law, in whole or in part, to the extent necessary or advisable to comply with applicable local laws, as determined by the Committee.  
8.    Compliance with Laws:  Notwithstanding anything in the Plan, the Administrative Procedures or this Agreement to the contrary, the obligations of the Corporation and the rights of the Optionee are subject to all applicable laws, rules and regulations including, without limitation, the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), the U.S. Securities Act of 1933, as amended, the U.S. Internal Revenue Code of 1986, as amended, and any other applicable U.S. and foreign laws.  No shares of Common Stock will be issued or delivered to the Optionee under the Plan unless and until there has been compliance with such applicable laws. 
9.    Acceptance of Grant: The Option may not be exercised unless it is accepted by the Optionee and notice of such acceptance is received by the Stock Plan Officer. 
10.    Interpretation and Amendments: The Option shall be administered and exercised in accordance with the Plan and the Administrative Procedures, as the same may be amended by the Committee from time to time, provided that no amendment may, without the consent of the Optionee, affect the rights of the Optionee under this Option in a materially adverse manner.  For purposes of the foregoing sentence, an amendment that affects the tax treatment of the Option or that is necessary to comply with securities or other laws applicable to the issuance of shares of Common Stock shall not be considered as affecting the Optionee’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 Procedures.  In the event of a conflict between the Plan and the Administrative Procedures, unless this Agreement specifies otherwise, the Plan shall control. 
11.    Nature of the Grant: Neither the grant of the Option nor anything else contained in this Agreement shall be deemed to limit or restrict the right of the Employing Company to terminate the Optionee’s employment at any time, for any reason, with or without cause.  Further, by accepting this Option, the Optionee acknowledges that:  

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	a)
	the Plan and the Administrative Procedures are established voluntarily by the Corporation, they are discretionary in nature and may be modified, amended, suspended or terminated by the Corporation at any time, to the extent permitted by their terms;

		
	b)
	the grant of the Option is voluntary and occasional and does not create any contractual or other right to receive future grants of options, or benefits in lieu of options, even if options have been granted in the past; 

		
	c)
	all decisions with respect to future option grants, if any, will be at the sole discretion of the Committee;  

		
	d)
	the Optionee is voluntarily participating in the Plan;  

		
	e)
	the Option and the shares of Common Stock subject to the Option are extraordinary items which do not constitute compensation of any kind for services of any kind rendered to the Corporation or to the Employing Company, and which are outside the scope of the Optionee’s employment contract, if any; 

		
	f)
	the Option and the shares of Common Stock subject to the Option are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, dismissal, redundancy, end-of-service payments, bonuses, long-service awards, pension or retirement benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Corporation or the Employing Company or any Subsidiary or affiliate of the Corporation;  

		
	g)
	the Option and the shares of Common Stock subject to the Option are not intended to replace any pension rights or compensation;

		
	h)
	the grant of the Option will not be interpreted to form an employment contract or relationship with the Corporation, the Employing Company or any Subsidiary or affiliate of the Corporation; 

		
	i)
	the future value of the shares of Common Stock underlying the Option is unknown, indeterminable and cannot be predicted with certainty; if the underlying shares do not increase in value, the Option will have no value.  If Optionee exercises the Option and obtains shares of Common Stock, the value of the shares acquired upon exercise may increase or decrease in value, even below the exercise price;  

		
	j)
	no claim or entitlement to compensation or damages arises from forfeiture of the Option resulting from termination of the Optionee’s employment by the Corporation or the Employing Company (for any reason whether or not in breach of applicable labor laws or the terms of the Optionee’s employment agreement, if any), and in consideration of the grant of the Option to which the Optionee is not otherwise entitled, the Optionee irrevocably agrees never to institute any claim against the Corporation or the Employing Company, waives his or her ability, if any, to bring any such claim, and releases the Corporation and the Employing Company from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, the Optionee shall be deemed irrevocably to have agreed not to pursue such claim and agreed to execute any and all documents necessary to request dismissal or withdrawal of such claim;

		
	k)
	it is the Optionee’s sole responsibility to investigate and comply with any applicable exchange control laws in connection with the issuance and delivery of shares of Common Stock pursuant to the exercise of the Option;

		
	l)
	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 Optionee’s participation in the Plan or the Optionee’s purchase or sale of the shares of Common Stock underlying the Option; 

		
	m)
	the Optionee 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;

		
	n)
	unless otherwise provided in the Plan, Administrative Procedures or by the Corporation in its discretion, the Option and the benefits evidenced by this Agreement do not create any entitlement to have the Option or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the shares of the Corporation; and

		
	o)
	the following provisions apply only if the Optionee is providing services outside the United States:

		
	i)
	the Option and the shares of Common Stock subject to the Option are not part of normal or expected compensation or salary for any purpose; and

		
	ii)
	the Optionee acknowledges and agrees that neither the Corporation nor the Employing Company shall be liable for any foreign exchange rate fluctuation between the local currency and the United States Dollar that may affect the value of the Option or of any amounts due to the Optionee pursuant to the exercise of the Option or the subsequent sale of any shares of Common Stock acquired upon exercise.

12.    Withholding Taxes:  The Optionee acknowledges that, regardless of any action taken by the Corporation or the Employing Company, the ultimate liability for any or all income tax, social security, payroll tax, payment on account or other tax-related withholding or liability in connection with any aspect of the Option, including the grant, vesting, or exercise of the Option or the subsequent sale of shares of Common Stock or receipt of dividends (“Tax-Related Items”) is and remains his or her responsibility and may exceed the amount withheld by the Corporation or the Employing Company.  Furthermore, the Optionee acknowledges that the Corporation and/or the Employing Company (a) make no representations or undertakings regarding the treatment of any Tax-Related Items; and (b) do not commit to and are under no obligation to structure the terms of the grant of the Option or any aspect of the Optionee’s participation in the Plan to reduce or eliminate his or her liability for Tax-Related Items or to achieve any particular tax result.  Further, if the Optionee has become subject to Tax-Related Items in more than one jurisdiction between the grant date and the date of any relevant taxable event, the Optionee acknowledges that the Corporation and/or the Employing Company (or former Employing Company, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.
Prior to the relevant taxable event, the Optionee shall pay or make adequate arrangements satisfactory to the Corporation and/or the Employing Company to satisfy all Tax-Related Items.  In this regard, the Corporation may notify the Optionee of the amount of Tax-Related Items, if any, required under U.S. federal and, where applicable, state and local or non-U.S. law, and in which case, the Optionee 

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shall, forthwith upon the receipt of such notice, remit the required amount to the Corporation in cash or in accordance with such regulations as the Committee may prescribe.  Alternatively, the Optionee authorizes the Corporation and/or the Employing Company, or their respective agents, 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 Optionee’s wages or other cash compensation paid to Optionee by the Corporation and/or the Employing Company; (2) withholding from proceeds of the sale of shares issued upon exercise of the Option either through a voluntary sale or through a mandatory sale arranged by the Corporation (on Optionee’s behalf pursuant to this authorization) through such means as the Corporation may determine in its sole discretion (whether through a broker or otherwise); or (3) withholding in shares to be issued upon exercise of the Option.  If the Corporation gives the Optionee the power to choose the withholding method, and the Optionee does not make a choice, then the Corporation will at its discretion withhold from the proceeds of the sale of shares issued upon exercise of the Option, which is alternative (2) herein.  
To avoid negative accounting treatment, the Corporation may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates.  If the Corporation withholds at a rate other than the minimum statutory rate, such as the maximum withholding rate, then the refund of any over-withheld amount shall be paid in cash and the Optionee will have no entitlement to the Common Stock equivalent.   If the Tax-Related Items are satisfied by withholding in shares issuable upon exercise of the Option, for tax purposes, the Optionee is deemed to have been issued the full number of shares of Common Stock subject to the exercised Option, notwithstanding that a number of the shares are held back solely for the purpose of paying the Tax-Related Items.  Finally, the Optionee 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 Optionee’s participation in the Plan or Optionee’s purchase of shares that cannot be satisfied by the means previously described. The Optionee understands that no shares of Common Stock or proceeds from the sale of shares of Common Stock shall be delivered to Optionee, notwithstanding the exercise thereof, unless and until the Optionee shall have satisfied any obligation for Tax-Related Items with respect thereto.
13.    Data Privacy: The Optionee 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 Optionee’s participation in the Plan. 
The Optionee understands that the Employing Company and the Corporation hold certain personal information about the Optionee, including, but not limited to, Optionee’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 options or any other entitlement to shares awarded, canceled, vested, unvested or outstanding in Optionee’s favor, as the Employing Company and/or the Corporation deems necessary for the purpose of implementing, administering and managing the Plan (“Data”).  The Optionee 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 Optionee’s country or elsewhere (and outside the European Economic Area), and that the recipient’s country may have different, including less stringent, data privacy laws and protections than the Optionee’s country.  The Optionee understands that Corporation may transfer Optionee’s Data to the United States, which is not considered by the European Commission to have data protection laws equivalent to the laws in Optionee’s country.  The Optionee understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative.  The Optionee 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 Optionee’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 Optionee may elect to deposit any shares of Common Stock acquired upon exercise of the Option.  The Optionee understands that Data will be held only as long as is necessary to implement, administer and manage the Optionee’s participation in the Plan.  The Optionee understands that if he or she resides outside the United States,  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 Optionee further understands that he or she is providing the consents herein on a purely voluntary basis.  If the Optionee does not consent or later seeks to revoke consent, the Optionee’s employment status or service and career with the Employing Company will not be adversely affected.  The Optionee understands, however, that refusing or withdrawing his or her consent may affect his or her ability to realize benefits from the Option or otherwise participate in the Plan.  For more information on the consequences of his or her refusal to consent or withdrawal of consent, the Optionee 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 current or future participation in the Plan or request the Optionee’s consent to participate in the Plan by electronic means.  The Optionee 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.  Such means of electronic delivery may include but do not necessarily include the delivery of a link to a Corporation intranet or the Internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other means of electronic delivery specified by the Corporation.  The Optionee consents to the electronic delivery of the Plan documents and the Agreement.  The Optionee acknowledges that he or she may receive from the Corporation a paper copy of any documents delivered electronically at no cost to the Optionee by contacting the Corporation by telephone or in writing.  The Optionee further acknowledges that the Optionee will be provided with a paper copy of any documents if the attempted electronic delivery of such documents fails.  Similarly, the Optionee understands that the Optionee must provide the Corporation or any designated third party administrator with a paper copy of any documents if the attempted electronic delivery of such documents fails.  The Optionee may revoke his or her consent to the electronic delivery of documents or may change the electronic mail address to which such documents are to be delivered (if the Optionee has provided an electronic mail address) at any time by notifying the Corporation of such revoked consent or revised e-mail 

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address by telephone, postal service or electronic mail.  Finally, the Optionee understands that he or she is not required to consent to electronic delivery of documents.
15.    Language:  If the Optionee has received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.  
16.    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.

17.    Governing Law and Venue:  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.  For purposes of litigating any dispute that arises under this grant or this Agreement, the parties hereby submit to and consent to the exclusive jurisdiction of the Commonwealth of Pennsylvania, and agree that such litigation shall be conducted in the courts of Allegheny County, Pennsylvania, or the federal courts for the United States for the Western District of Pennsylvania, where this grant is made and/or to be performed.
18.    Section 409A:  Notwithstanding any other provision of the Plan, the Administrative Procedures or this Agreement, the Plan, the Administrative Procedures and this Agreement shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A of the U.S. Internal Revenue Code of 1986, as amended (together with any Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the date hereof, “Section 409A”).  The Corporation reserves the right, to the extent the Corporation deems necessary or advisable in its sole discretion, to unilaterally amend or modify the Plan, the Administrative Procedures or this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Committee determines are necessary or appropriate to ensure that this Option qualifies for exemption from, or complies with the requirements of, Section 409A; provided, however, that the Corporation makes no representation that the Option will be exempt from, or will comply with, Section 409A, and makes no undertakings to preclude Section 409A of the Code from applying to the Option or to ensure that it complies with Section 409A. 
19. Exhibit A.  Notwithstanding any provisions in this Agreement, the Option shall be subject to any special terms and conditions set forth in Exhibit A to this Agreement for the Optionee’s country.  Moreover, if the Optionee relocates to one of the countries included in Exhibit A, the special terms and conditions for such country will apply to the Optionee, to the extent the Corporation determines that the application of such terms and conditions is necessary or advisable in order to comply with local law.  Exhibit A constitutes part of this Agreement. 
20.  Insider Trading Restrictions/Market Abuse Laws:  The Optionee acknowledges that, depending on the Optionee's country of residence, the Optionee may be subject to insider trading restrictions and/or market abuse laws, which may affect the Optionee's ability to acquire or sell shares of Common Stock or rights to shares of Common Stock (e.g., Options) under the Plan during such times as the Optionee is considered to have “inside information” regarding the Corporation (as defined by any applicable laws in the Optionee's country).  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable insider trading policy maintained by the Corporation.  The Optionee acknowledges that it is the Optionee's responsibility to comply with any applicable restrictions, and the Optionee is advised to speak to his or her personal advisor on this matter.    
21.  Imposition of Other Requirements:  The Corporation reserves the right to impose other requirements on the Optionee’s participation in the Plan, on the Option and on any shares of Common Stock acquired under the Plan, to the extent the Corporation determines it is necessary or advisable in order to comply with local law, and to require the Optionee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. 
22.    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. 
23.   Waiver:  The Optionee acknowledges that a waiver by the Corporation of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Optionee.

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