Document:

SXC 2014 Q3 10Q Ex10.1

Exhibit 10.1

PERFORMANCE SHARE UNIT AGREEMENT
under the
SUNCOKE ENERGY, INC. LONG-TERM PERFORMANCE ENHANCEMENT PLAN
This Performance Share Unit Agreement (the “Agreement”), is entered into as of _______________________, 20__ by and between SunCoke Energy, Inc. (“SunCoke”) and ____________________, an employee of SunCoke or one of its Affiliates (the “Participant”).
W I T N E S S E T H:
WHEREAS, the SunCoke Energy, Inc. Long-Term Performance Enhancement Plan (the “Plan”) is administered by the Compensation Committee or its duly appointed sub-committee (the Compensation Committee or such sub-committee, the “Committee”), and the Committee has determined to grant to the Participant, pursuant to the terms and conditions of the Plan, an award (the “Award”) of Performance Share Units (“PSUs”), representing rights to receive shares of Common Stock, which Award is subject to a risk of forfeiture by the Participant, with the payout of such PSUs being conditioned upon the attainment of performance goals established by the Committee for the applicable performance period and the Participant’s continued employment with SunCoke or one of its Affiliates through the Determination Date (as defined herein); and
WHEREAS, the Participant has determined to accept such Award.
NOW, THEREFORE, SunCoke and the Participant, each intending to be legally bound hereby, agree as follows:

ARTICLE I
AWARD OF PERFORMANCE SHARE UNITS
		
	1.1
	Identifying Provisions.  For purposes of this Agreement, the following terms shall have the following respective meanings:

		
	(a)
	 Participant:                ________________________________

		
	(b)
	 Grant Date:                ________________________________

		
	(c)
	 Target Number of PSUs:        ________________________________

		
	(d)
	 Performance Period:            3 year period ending December 31, 20_

Any initially capitalized terms and phrases used in this Agreement but not otherwise defined herein shall have the respective meanings ascribed to them in the Plan.
		
	1.2
	Award of PSUs.  Subject to the terms and conditions of the Plan and this Agreement, the Participant is hereby granted the target number of PSUs set forth in Section 1.1.

		
	1.3
	Dividend Equivalents.  The Participant shall be entitled to receive payment from SunCoke in an amount equal to each cash dividend (“Dividend Equivalent”) payable subsequent to the Grant Date, just as though such Participant, on the record date for payment of such dividend, had been the holder of record of shares of Common Stock equal to the target number of PSUs.  SunCoke shall establish a bookkeeping methodology to account for the Dividend Equivalents to be credited to the Participant.  The Dividend Equivalents will not bear interest.  

                                                1

		
	1.4
	Adjustment, Vesting and Payment of PSUs and Dividend Equivalents.

		
	a.
	Adjustment.

		
	1.
	The target number of PSUs subject to each PSU Award shall be adjusted by the Committee after the end of the three-year performance period that begins on January 1, 20__ and ends on December 31, 20__, based on the level of achievement of the performance goal(s) established with respect to the performance period as set forth in the attached Exhibit A.  The date that the Committee determines the level of performance goal achievement applicable to the Award is the “Determination Date”.

		
	2.
	Dividend Equivalents will be subject to the same adjustment, determined by multiplying the amount of Dividend Equivalents as of the Determination Date by the percentage adjustment made to the PSUs.

		
	b.
	Vesting.  Except as set forth in Section 1.5(b), (c) and (d) below, a Participant shall become vested in his PSU Award and related Dividend Equivalents on the Determination Date, if he remains in continuous employment with SunCoke or one of its Affiliates until the Determination Date.  PSUs and Dividend Equivalents that do not vest shall be forfeited.

		
	c.
	Payment.  Except as set forth in Section 1.5(b), (c) and (d) below, actual payment for vested PSUs and vested Dividend Equivalents shall be made to the Participant within one month after the Determination Date.

		
	1.
	Payment for vested PSUs.  Payment for vested PSUs shall be made in shares of Common Stock.  The number of shares of Common Stock paid to the Participant shall be equal to the number of PSUs that vest on the Determination Date.

		
	2.
	Payment of Related Dividend Equivalents.  Payment for the vested Dividend Equivalents will be made in cash.

1.5    Termination of Employment.
		
	a.
	Termination of Employment - In General.  Upon termination of the Participant’s employment with SunCoke and its Affiliates prior to the Determination Date for any reason other than a Qualifying Termination or due to death or permanent disability, the Participant shall forfeit 100% of such Participant’s PSUs, together with the related Dividend Equivalents, and the Participant shall not be entitled to receive any Common Stock or any payment of any Dividend Equivalents with respect to the forfeited PSUs.

		
	b.
	Qualifying Termination of Employment.  In the event of the Participant’s  Qualifying Termination prior to the Determination Date, the Participant’s outstanding PSUs and Dividend Equivalents shall vest immediately at the higher of (i) the target level or (ii) the actual performance level based on Total Shareholder Return calculated as of the date of the Change in Control and pre-tax ROIC calculated as of the fiscal quarter  ending on or immediately prior to the date of the Change in Control, and shall be paid in the form described in Section 1.4(c) above within one month following such Qualifying Termination.

		
	c.
	Termination of Employment Due to Death or Permanent Disability.  In the event of the Participant’s termination of employment due to death or permanent disability prior to the Determination Date, the Participant’s outstanding PSUs and Dividend Equivalents shall vest immediately at the target level and be paid in the form described in Section 1.4(c) above within one month following such termination of employment.

                                                2

		
	d.
	Termination of Employment Due to Retirement.  In the event of the Participant’s termination of employment with SunCoke and its Affiliates prior to the Determination Date due to Retirement, the Participant’s PSUs and Dividend Equivalents shall remain outstanding and shall be adjusted at the end of the performance period as described in Section 1.4.  The Participant shall vest in a pro rata portion of the adjusted PSUs determined by multiplying the number of PSUs by a fraction, the numerator of which is the full number of months that have elapsed from the beginning of the performance period to the employment termination date and the denominator of which is the number of full months in the performance period.  The Participant shall also vest in the adjusted pro rata portion of the related Dividend Equivalents.  The Participant’s PSUs and Dividend Equivalents that vest shall be paid in the form described in Section 1.4(c) above within one month following the Determination Date.

For purposes of this Section 1.5, (1) a Participant shall have a “permanent disability” if he is found to be disabled under the terms of SunCoke’s long-term disability policy in effect at the time of the Participant’s termination due to such condition or if the Committee in its discretion makes such determination; and (2) Retirement shall mean a Participant’s termination of employment, other than for Just Cause, where the Participant has either attained age 55 and has provided services to SunCoke for ten years or more or attained age 60 and has provided services to SunCoke for five years or more.
ARTICLE II
GENERAL PROVISIONS
		
	2.1
	Effect of Plan; Construction.  The entire text of the Plan is expressly incorporated herein by this reference and so forms a part of this Agreement.  In the event of any inconsistency or discrepancy between the provisions of the PSU Award covered by this Agreement and the terms and conditions of the Plan under which such PSUs are granted, the provisions in the Plan shall govern and prevail.  The PSUs, the related Dividend Equivalents and this Agreement are each subject in all respects to, and SunCoke and the Participant each hereby agree to be bound by, all of the terms and conditions of the Plan, as the same may have been amended from time to time in accordance with its terms.

		
	2.2
	Tax Withholding.  All distributions under this Agreement are subject to withholding of all applicable taxes.

		
	a.
	Payment in Cash.  Cash payments in respect of any vested PSU or Dividend Equivalent shall be made net of any applicable federal, state, or local withholding taxes.

		
	b.
	Payment in Stock.  Immediately prior to the payment of any shares of Common Stock to Participant in respect of vested PSUs, the Participant shall remit an amount sufficient to satisfy any Federal, state and/or local withholding tax due on the receipt of such Common Stock.  At the election of the Participant, and subject to such rules as may be established by the Committee, such withholding obligations may be satisfied through the surrender of shares of Common Stock (otherwise payable to Participant in respect of such vested PSUs) having a value, as of the date that such vested PSUs first became payable, sufficient to satisfy the applicable tax obligation.

		
	2.3
	Administration.  Pursuant to the Plan, the Committee is vested with conclusive authority to interpret and construe the Plan, to adopt rules and regulations for carrying out the Plan, and to make determinations with respect to all matters relating to this Agreement, the Plan and Awards made pursuant thereto.  The authority to manage and control the operation and administration of this Agreement shall be likewise vested in the Committee, and the Committee shall have all powers with respect to this Agreement as it has with respect to the Plan.  Any interpretation of this Agreement by the Committee, and any decision made by the Committee with respect to this Agreement, shall be final and binding.

                                                3

		
	2.4
	Amendment.  This Agreement may be amended in accordance with the terms of the Plan.

		
	2.5
	Captions.  The captions at the beginning of each of the numbered Sections and Articles herein are for reference purposes only and will have no legal force or effect.  Such captions will not be considered a part of this Agreement for purposes of interpreting, construing or applying this Agreement and will not define, limit, extend, explain or describe the scope or extent of this Agreement or any of its terms and conditions.

		
	2.6
	Governing Law.  The validity, construction, interpretation and effect of this instrument shall be governed exclusively by and determined in accordance with the law of the State of Delaware (without giving effect to the conflicts of law principles thereof), except to the extent preempted by federal law, which shall govern.

		
	2.7
	Notices.  All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing, by facsimile, by overnight courier or by registered or certified mail, postage prepaid and return receipt requested.  Notices to SunCoke shall be deemed to have been duly given or made upon actual receipt by SunCoke.  Such communications shall be addressed and directed to the parties listed below (except where this Agreement expressly provides that it be directed to another) as follows, or to such other address or recipient for a party as may be hereafter notified by such party hereunder:

		
	a.
	If to SunCoke:            SunCoke Energy, Inc.

Compensation Committee of the Board of Directors
1011 Warrenville Road
Lisle, IL  60532
Attention:  Corporate Secretary

		
	b.
	If to the Participant:        To the address for Participant as it appears on

SunCoke’s records.

		
	2.8
	Severability.  If any provision hereof is found by a court of competent jurisdiction to be prohibited or unenforceable, it shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability, and such prohibition or unenforceability shall not invalidate the balance of such provision to the extent it is not prohibited or unenforceable, nor invalidate the other provisions hereof.

		
	2.9
	Entire Agreement.  This Agreement constitutes the entire understanding and supersedes any and all other agreements, oral or written, between the parties hereto, in respect of the subject matter of this Agreement and embodies the entire understanding of the parties with respect to the subject matter hereof.

		
	2.10
	Forfeiture.  The shares of Common Stock or cash payments received in connection with the Award granted pursuant to this Agreement constitute incentive compensation.  The Participant agrees that any shares of Common Stock or cash payments received with respect to the Award will be subject to any clawback/forfeiture provisions applicable to SunCoke that are required by any law in the future, including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act and/or any applicable regulations.

*     *     *

The Award is conditioned upon the acceptance by the Participant of the terms and conditions of the Award as set forth in this Agreement.  To accept this Agreement, a Participant must access E*Trade Financial Services’ website.

                                                4

SunCoke Energy, Inc.
Long Term Performance Enhancement Plan
Performance Share Unit Agreement
Exhibit 
	
							
	SunCoke 20__ - 20__ Performance Share Unit Metrics

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	Threshold
	Target
	Maximum

	 
	 
	 
	Weight
	0%
	100%
	200%

	 
	 
	 
	 
	 
	 
	 

	Avg 3 year SXC TSR VS 3 Year S&P 600
	 
	50%
	25th Percentile
	 
	75th Percentile

	 
	 
	 
	 
	 
	 
	 

	3 year avg pre-tax return on capital (ROIC) - Coke Only
	 
	50%
	___%
	___%
	___%

	 
	 
	 
	 
	 
	 
	 

	Performance between threshold, target and maximum will be adjusted proportionately
	 
	 
	 

	3 Year TSR Calculation: (10 Day closing average - 10 day opening average) / 10 day opening average
 

At the end of the three-year performance period (December 31, 20__), the Shares subject to the PSU Award will be multiplied by the performance payout percentage, which is based on the level of attainment of the performance metrics for the performance period. 

CH2\14975135.1  

                                                5SXC 2014 Q3 10-Q Ex10.2

Exhibit 10.2

SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH FIVE ASTERISKS (*****).

SUPPLEMENT TO THE ARCELORMITTAL USA LLC AND INDIANA HARBOR COKE COMPANY, L.P. COKE PURCHASE AGREEMENT TERM SHEET AND THE ARCELORMITTAL CLEVELAND LLC, ARCELORMITTAL INDIANA HARBOR LLC AND JEWELL COKE COMPANY, L.P. COKE SUPPLY AGREEMENT
This SUPPLEMENT TO THE COKE PURCHASE AGREEMENT TERM SHEET AND THE COKE SUPPLY AGREEMENT (this “Supplement”), dated as of September 10, 2014, is by and between Indiana Harbor Coke Company, L.P. (“IHCC”)  and Arce!orMittal USA LLC (formerly known as ArcelorMittal USA Inc. and successor to Inland Steel Company) (“AMUSA”), and, for purposes of Sections 1, 2.3, 3.3 and 3.4 of this Supplement only. Jewell Coke Company, L. P. (“Jewell”) and ArcelorMittal Cleveland LLC (“AM Cleveland'”) and ArcelorMittall Indiana  Harbor LLC (“AM Indiana Harbor”).  IHCC and AM USA are referred to herein individually as a “Party” and collectively as the “Parties.”
WHEREAS, IHCC and AMUSA are Parties  to an Amended and Restated Coke Purchase Agreement  dated February 19, 1998 (as may have been amended, modified or otherwise supplemented, including without limitation, as amended by the Term Sheet, as such term is defined herein, the “Coke Purchase Agreement”) and Jewell, AM Cleveland and AM Indiana Harbor are parties to a Coke Supply Agreement dated October 28, 2003 (as may have been amended, modified or otherwise supplemented, the “Jewell Agreement”);
WHEREAS, IHCC and AMUSA are Parties to a Term Sheet, dated September. 2013, to the Coke Purchase Agreement (as may have been amended, modified or otherwise supplemented, the “Term Sheet”);
WHEREAS, for the avoidance of doubt, the Term Sheet is binding and enforceable, such that until the Parties are able to agree to execute an amendment and/or  amendment and reinstatement to the Coke Purchase Agreement, the Term Sheet represents the binding agreement of the Parties; and
WHEREAS, IHCC and AMUSA desire to supplement and memorialize certain policies and procedures associated with the Term Sheet; an
WHEREAS. Jewell, AM Cleveland and AM Indiana Harbor desire to memorialize certain agreements associated with the Jewell Agreement in Sections 1, 2.3, 3.3 and 3.4 of this Supplement.
NOW THEREFORE, in consideration of the promises and the mutual agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound, agree as follows, and Jewell, AM Cleveland and AM Indiana Harbor agree as set forth only in Sections 1, 2.3, 3.3 and 3.4 of this Supplement:
		
	1.
	Effective Date.  This Supplement shall become effective and enforceable as of June 1, 2014, and its term shall be as specified for each of the subsections of Section 2 below.

		
	2.
	Supplements to the Tern Sheet and Jewell Agreement.

2.1    Lowering degradation allotment.  For coke that is stockpiled in the lowering well (sometimes referred to as “lowering well coke'”) during the period of time between June 1, 2014 through July 31, 2014 (“IH7 Reline Outage”) only, AMUSA shall pay an adjusted contract price determined by first determining the contract price for the full measured weight of such lowering  well coke as though it had not been stockpiled and then subtracting a percentage equal to *****% attributable to an estimated amount of undersized coke contained within the lowering well coke (''breeze allotment") for the lesser of actual tons sent to the lowering well during the IH7 Reline Outage, or ***** tons.  For clarity. the change from the standard *****% breeze allotment in the Coke Purchase Agreement is a one-time exception applicable only during the IH7 Reline Outage.
2.2    Extended payment terms on 50,000 tons of coke.  IHCC will provide extended payment terms on 50,000 tons of coke produced by IHCC and delivered to AMUSA during the IH7 Reline Outage.  Payment for one fifth of such tonnage is due and payable on each of the last day of August 2014, September 2014. October 2014, November 2014, 

                                                1

and December 2014, respectively.   For billing purposes, the last 50,000 tons produced  by IHCC and delivered to AM USA in July 2014 shall represent the tonnage eligible for the deferred payment.
2.3    2014 Minimum Coke Purchase Requirement and Price for Coke Above 1.00 millionTons in 2014.  Pursuant to page 4 of the Term Sheet, the Parties have mutually agreed on a Minimum Coke Purchase Requirement of ***** tons per year for the 2014 calendar year.  For purposes of offsetting the price difference between IHCC coke and Jewell coke for calendar year 2014, for every ton of IHCC coke produced above the Minimum Coke Purchase Requirement of ***** tons in 2014 that AM USA elects to purchase, IHCC will provide a discount of $***** per ton of coke off of the IHCC Return on Capital charge for such coke.  Additionally. Jewell, AM Cleveland and AM Indiana Harbor agree that AM Cleveland and AM Indiana Harbor's annual coke purchase requirement of Jewell coke for 2014 under the Jewell Agreement shall be reduced by the corresponding tonnage of IHCC coke greater than ***** tons purchased by AMUSA up to a maximum of 50,000 tons.  AMUSA, AM Cleveland and AM Indiana Harbor shall declare to IHCC and Jewell in writing no later than September 15, 2014 AM Cleveland and AM Indiana Harbor's intentions to forego purchases from Jewell for tonnage AMUSA will take from IHCC in excess of the Minimum Coke Purchase Requirement.  In the event AM USA declines to purchase IHCC coke in excess of the IHCC Minimum Coke Purchase Requirement in 2014, the Jewell annual coke purchase requirement for 2014 will not be modified and IHCC retains the right to sell or place into stock at its risk and expense any coke produced over the Minimum Coke Purchase Requirement  for 2014.  This Section 2.3 applies to calendar year 2014 only.  For the remaining term of the Coke Purchase Agreement Term Sheet, the Minimum Coke Purchase Requirement and price per ton of coke above that requirement is set forth in the Coke Purchase Agreement Term Sheet.
2.4    2014 Budget Resolution for IHCC Coke Plant.  Notwithstanding anything in to the contrary set forth in the Term Sheet, including without limitation, anything to the contrary related to the process for·determining or calculating the 2014 Annual Budget, the Parties agree to the following Annual Budget for January 1, 2014 to December 31. 2014:
2.4.1.    $***** million, or $***** per ton of coke ($*****/T of coke), using the 2014 Minimum Coke Purchase Requirement of ***** tons.
		
	3.
	Terms and Conditions of the Coke Purchase Agreement and Term Sheet and Jewell Agreement:  Conflicts.

3.1    Except as expressly modified hereby, this Supplemental Agreement shall not be interpreted as modifying, amending, or waiving in any manner·whatsoever·any of the terms of the Coke Purchase Agreement or Term Sheet, or' any of the Parties’ rights, remedies, and obligations under the Coke Purchase Agreement or Term Sheet.
3.2    To the extent that there is any conflict between the terms of the Coke Purchase Agreement and this Supplement, or any conflict between the terms of the Term Sheet and this Supplement, this Supplement shall control.
3.3     Except as expressly modified hereby, this Supplemental Agreement shall not be interpreted as modifying, amending, or waiving in any manner whatsoever any of the terms of the Jewell Agreement, or any of Jewell's, AM Cleveland’s and AM Indiana Harbor’s rights, remedies, and obligations under the Jewell Agreement.
3.4    To the extent that there is any conflict between the terms of the Jewell Agreement and this Supplement, this Supplement shall control.

IN WITNESS WHEREOF', the parties hereto have caused this Supplement to be executed by their duly authorized representatives as of the dale first set forth above.
INDIANA HARBOR COKE COMPANY. L.P.        
By:  Indiana Harbor Coke Company, its General Partner    
Name:  /s/ P. Michael Hardesty                
Title:  Vice President                    
                            

                                                2

ARCELORMITTAL USA LLC                
By:  /s/ Om Mandhana                    
Name:  Om Mandhana                    
Title:  _____________                            
ARCELORMITTAL USA LLC                
By:  /s/ Wendell Carter                    
Name:  Wendell Carter                    
Title:    _____________                            

THE FOLWWING SIGNATORIES ARE FOR PURPOSES OF SECTIONS 1, 2.3, 3.3 AND 3.4 OF THIS SUPPLEMENT ONLY:
JEWELL COKE COMPANY. L.P.                
By:  Jewell Coke Acquisition Company, its General Partner    
Name:  /s/ P. Michael Hardesty                
Title:  Vice President                    
ARCELORMITTALCLEVELAND LLC                
By:  /s/ Om Mandhana                        
Name:      Om Mandhana                    
Title:   _____________                        
ARCELORMITTALL CLEVELAND LLC            
By:  /s/ Eric Hauge                        
Name:  Eric Hauge                        
Title:   _____________                        
ARCELORMITTAL INDIANA HARBOR LLC            
By:  /s/ Om Mandhana                        
Name:  Om Mandhana                    
Title:  _____________                                
ARCELORMITTAL INDIANA HARBOR LLC            
By:  /s/ Wendell Carter                        
Name:  Wendell Carter                        
Title:  _____________                                

                                                3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}]]