SEC Contract Filing

Filing Date: 2025-05-02

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<DIV><FONT size="1" style="font-size:1pt;color:white"> Administrative Procedures for the Executive Management Annual Incentive Compensation Plan under the United States Steel Corporation 2016 Omnibus Incentive Compensation Plan As approved by the Compensation &amp; Organization Committee on February 25, 2025 1. Administration. The Compensation &amp; Organization Committee (the &#8220;Committee&#8221;) shall administer the Annual Incentive Compensation Plan (the &#8220;Plan&#8221;) under and pursuant to Sections 3.01 and 6.05 of the United States Steel Corporation 2016 Omnibus Incentive Compensation Plan (the &#8220;Omnibus Plan&#8221;). Unless otherwise defined herein, capitalized terms used herein shall have the meanings set forth in the Omnibus Plan. 2. Eligibility/Participation. (A) Eligibility. All Executive Officers (defined as those employees whose compensation is approved or reviewed by the Committee) of the Corporation, its Subsidiaries and affiliates are eligible to participate in the Plan upon designation by the Committee. (B) Participation. All Executive Officers of the Corporation, its Subsidiaries and affiliates designated via written notice as participants shall be participants in the Plan (&#8220;Participants&#8221;). (C) New Participants. An individual who was not a Participant on the first day of the Performance Period may, subject to the Committee&#8217;s discretion, become a Participant during the Performance Period, participating on a pro rata basis for the remaining portion of the period in which such Participant first becomes eligible to participate, but shall be ineligible to participate in this Plan for any portion of a year during which the Participant participates in any other cash incentive or bonus plan or program. (D) Rights. No Participant or other employee shall have any claim to be granted an Award under the Plan, and nothing contained in the Plan or any Award Agreement shall confer upon any Participant any right to continue in the employ of the Corporation, its Subsidiaries or affiliates or interfere in any way with the right of the Corporation, its Subsidiaries or affiliates to terminate a Participant's employment at any time. 3. Performance Period. Unless otherwise determined by the Committee, each Performance Period shall be a calendar year. 4. Incentive Award Determination. (A) Incentive Award Goals. Unless otherwise determined by the Committee, the Incentive Award Goals shall be the following objective measures: (1) Segment EBITDA and Total EBITDA. Segment EBITDA shall mean, for the Performance Period, EBITDA for each business unit (reportable segments and other businesses), excluding any gains or losses resulting from changes due to foreign exchange rate translation during the Performance Period, if applicable. Total EBITDA shall mean, for the Performance Period, total EBITDA for consolidated worldwide operations (including minority interests). EBITDA for consolidated worldwide operations (including minority interests) shall mean income from operations as reported in the consolidated statements of operations of United States Steel Corporation, plus or minus the effect of items not allocated to segments (excluding postretirement benefit expenses) as disclosed in the notes to the consolidated financial statements of United States Steel Corporation, plus depreciation, depletion and amortization as reported in the consolidated statements of cash flows of United States Steel Corporation. </FONT></DIV>
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<DIV><FONT size="1" style="font-size:1pt;color:white"> -2- (2) Cash Conversion Cycle. The Cash Conversion Cycle (&#8220;CCC&#8221;) is calculated as Days Sales Outstanding plus Days Inventory Outstanding minus Days Payable Outstanding, which are defined as follows: (a) Days Sales Outstanding = ((September 30, 2025 Accounts Receivable, net + December 31, 2025 Accounts Receivable, net) / 2) / (4th Quarter 2025 Net Sales / 92) (b) Days Inventory Outstanding = ((September 30, 2025 Inventory + December 31, 2025 Inventory) / 2) / (4th Quarter 2025 Cost of Goods Sold / 92) (c) Days Payable Outstanding = ((September 30, 2025 Accounts Payable + December 31, 2025 Accounts Payable / 2) / (4th Quarter 2025 Cost of Goods Sold / 92) Accounts Receivable, net, Net Sales, Inventory, Accounts Payable and Cost of Goods Sold shall be determined in accordance with generally accepted accounting principles in the United States. (B) Adjustments. The Committee may make adjustments to the Incentive Award Goal calculations as determined by the Committee in its discretion. Unless otherwise determined by the Committee, the Incentive Award Goals will be adjusted as specified in Section 6. (C) Setting of Individual Incentive Targets and Payout Scales. (1) The Individual Incentive Target, defined as a percentage of base salary (expressed for the Participant, grade level and/or position), and the Payout Scales for all levels of performance goals shall be set by the Committee. (2) The Individual Incentive Target shall be calculated by multiplying the designated target percentage by the actual base salary earned by the Participant during the relevant portions of the Performance Period. (3) The Payout Scale applied to all performance goals based on the actual performance achieved will determine the payout percent applied in the Incentive Award Formula under Section 5, subject to nega