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:
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Name of Grantee:
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PARTICIPANT NAME |
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Name of Employing Company |
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on Date Hereof:
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(the company recognized by the
Corporation as employing
the Grantee on the date hereof) |
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Target Number of Shares |
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Subject to Award:
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# SHARES |
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Maximum Number of Shares |
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Subject to Award:
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(two times the Target Number of Shares Subject to Award) |
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Performance Period
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The approximately three-year period identified by the
Compensation Committee in writing at the time of Grant |
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Performance Goals
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(see Exhibit A, attached) |
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Date of This Award:
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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 Corporations 2005 Stock Incentive Plan (the Plan), the
Corporations 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.
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United States Steel Corporation |
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Accepted as of the above date: ACCEPTANCE DATE |
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By
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By
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PARTICIPANT ES |
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Authorized Officer
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Signature of Grantee
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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 Committees 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 excepting Performance Awards paid by reason of a Change of Control. 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 Grantees 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. In the event that any payment to a U.S. tax-payer with respect to a
Performance Award is considered to be based upon separation from service, and not compensation the
Grantee 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 the Grantees termination if the
Grantee is a specified employee under Section 409A of the Code upon his separation from service.
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 any terms or conditions of the Plan or 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, (i) the Performance Period shall automatically end, (ii) the actual performance for
the abbreviated Performance Period shall be measured against the established Performance Goals,
without regard to the Committees negative discretion, the performance criteria shall be deemed
satisfied only to the extent the actual performance was achieved (the Achieved Performance
Award), and the balance of the Performance Award, if any, shall be forfeited, and (iii) the
Achieved Performance Award shall remain subject to forfeiture until the third anniversary of the
Grant of this Performance Award if the Grantees employment is terminated after the Change of
Control but before the third anniversary of the date of Grant; provided, however, notwithstanding
the first paragraph of Section 5, (i) if the Grantees employment is terminated, other than for
Cause or a voluntary termination in the absence of Good Reason, within 24 months following a Change
of Control, then the Achieved Performance Award shall not be forfeited upon such termination;
rather, the Achieved Performance Award shall vest immediately upon the termination, (ii) if the
Grantees employment is terminated by reason of death or Disability, then the Achieved Performance
Award shall not be forfeited upon such death or Disability; rather, the Achieved Performance Award
shall vest immediately upon the Grantees death during employment or termination of employment by
reason of Disability; and (iii) if the Grantees employment is terminated by reason of Retirement
or Termination with Consent, then a prorated portion of the Achieved Performance Award will vest,
based upon the number of complete months worked during the original Performance Period in relation
to the number of whole months in the original Performance Period and the remainder shall be
forfeited.
5. Termination of Employment: Unless otherwise determined by the Committee, (i) the
Performance Award is forfeited if the Grantees employment is terminated 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, and (ii) a prorated value of the Performance Award will vest based upon (x) the number of
complete months worked by the Grantee during the Performance Period, in the event of a Grantees
termination of employment during the Performance Period by reason of Retirement or Termination
with Consent, or (y) the schedule contained within the Administrative Regulations, in the event of
a Grantees termination of employment during the Performance Period by reason of Death or
Disability, in any case 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 Committees negative discretion.
The remaining value of the Performance Award is forfeited immediately upon the Grantees
termination of employment without consideration or further action being required of the
Corporation or the Employing Company. Any and all forfeitures shall be evidenced by written
notice to the Grantee.
Notwithstanding the foregoing, if the Grantees employment is terminated following a Potential
Change of Control (as defined in Section 4 (F)(2) of the Administrative Regulations) other than for
Cause or a voluntary termination in the absence of Good Reason and, subsequently, a 409A Change of
Control (as defined in Section 6(E)(i) of the Administrative Regulations) occurs within 24 months
following such termination, then the Performance Award shall vest in accordance with paragraph 4
hereof, but without regard to the Grantees continued employment.
6. Vesting: Subject to Sections 4 and 5, 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 Companys right to terminate the Grantees employment at any time,
performing such duties consistent with his capabilities.
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
Grantees termination of employment (whether or not in breach of local labor laws), the Grantees
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); 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 Grantees 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.