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sxc202110kex105

Exhibit 10.5                                          SUNCOKE ENERGY, INC.    LONG-TERM PERFORMANCE ENHANCEMENT PLAN    (Amended and Restated Effective as of February 14, 2018)  

 

1   ARTICLE I  AMENDMENT AND RESTATEMENT    SunCoke Energy, Inc. (the "Company") established the SunCoke Energy, Inc. Long-Term  Performance Enhancement Plan (the "Plan") effective as of July 21, 2011. The Plan was amended and  restated effective February 22, 2013, and is hereby further amended and restated effective as of February  14, 2018, subject to approval by the Company's stockholders at the Company's annual meeting on May  3, 2018. Awards granted prior to the effective date of the Plan's amendment and restatement shall be  governed by the terms of the Plan as in effect on the grant date of the Award.    ARTICLE II  PURPOSE    The purposes of the Plan are to: (a) better align the interests of stockholders and Key Employees  by creating a direct linkage between Participants' rewards and stockholders' gains; (b) provide Key  Employees with the ability to increase equity ownership in the Company; (c) provide competitive  compensation opportunities that can be realized through attainment of performance goals; and  (d) provide an incentive to Key Employees for continued service with the Company.    ARTICLE Ill  DEFINITIONS    As used in this Plan, the following terms shall have the meanings set forth below:    3.1 "Affiliate" means any entity that directly, or indirectly through one or more intermediaries,  controls, is controlled by, or is under common control with the Company.  3.2 "Award' means an Option, Restricted Stock, Share Unit or SAR granted pursuant to the  terms of the Plan.  3.3 "Board of Directors" means the Board of Directors of the Company.    3.4 "Change in Controf' means the occurrence of any of the following events:    (a) The acquisition by any person (within the meaning of Section 13(d)(3) or 14(d)(2) of the  Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the  Exchange Act) of 20% or more of either (i) the then outstanding shares of Common Stock or (ii) the  combined voting power of the then outstanding voting securities of the Company entitled to vote generally  in the election of directors; provided, however, that for purposes of this clause (a), the following  acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company, (B)  any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust)  sponsored or maintained by the Company or any company controlled by, controlling or under common  control with the Company, or (D) any acquisition by any entity pursuant to a transaction that complies  with clauses (c)(i), (c)(ii) and (c)(iii) of this definition.  (b) Individuals who, as of the date that the Plan becomes effective, constitute the Board of  Directors (the "Incumbent Board') cease for any reason to constitute at least a majority of the Board  of Directors; provided, however, that any individual becoming a director subsequent to the date hereof  whose election, or nomination for election by the stockholders of the Company, was approved by a vote  of at least a majority of the directors then comprising the Incumbent Board shall be considered as though  such individual were a member of the Incumbent Board, but excluding, for this purpose, any such  individual whose initial assumption of office occurs as a result of an actual or threatened election contest  with respect to the election or removal of directors or other actual or threatened solicitation of proxies or  consents by or on behalf of a person other than the Board of Directors.  

 

2   (c) Consummation of a reorganization, merger, statutory share exchange or consolidation or  similar corporate transaction involving the Company or any of its Subsidiaries, a sale or other disposition  of all or substantially all of the assets of the Company or the acquisition of assets or stock of another  entity by the Company or any of its Subsidiaries, in each case unless, following such business  combination:  (i) all or substantially all of the individuals and entities that were the beneficial owners of  the then outstanding Common Stock and the then outstanding Company voting securities  immediately prior to such business combination beneficially own, directly or indirectly, more than  50% of the then outstanding shares of common stock and the combined voting power of the then  outstanding voting securities entitled to vote generally in the election of directors, as the case may  be, of the corporation resulting from such business combination (including, without limitation, a  corporation that, as a result of such transaction, owns the Company or all or substantially all of the  assets of the Company, either directly or through one or more subsidiaries) in substantially the  same proportions as their ownership immediately prior to such business combination of the then  outstanding Common Stock and the then outstanding Company voting securities, as the case may  be;  (ii) no person (excluding any corporation resulting from such business combination or any  employee benefit plan (or related trust) of the Company or such corporation resulting from such  business combination or any of their respective subsidiaries) beneficially owns, directly or indirectly,  20% or more of, respectively, the then outstanding shares of common stock of the corporation  resulting from such business combination or the combined voting power of the then- outstanding  voting securities of such corporation, except to the extent that such ownership existed prior to the  business combination; and  (iii) at least a majority of the members of the board of directors of the corporation resulting  from such business combination were members of the Incumbent Board at the time of the execution  of the initial agreement or of the action of the Board of Directors providing for such business  combination; or    (d) Approval by the stockholders of the Company of a complete liquidation or dissolution of the  Company.    3.5 "Code" means the Internal Revenue Code of 1986, as amended.    3.6 "Committee" means the Compensation Committee of the Board of Directors, as constituted  from time to time. The Compensation Committee shall consist of at least two members of the Board of  Directors, each of whom shall meet applicable requirements set forth in the pertinent regulations under  Section 16 of the Exchange Act.    3.7 "Common Stock'' means common stock, par value $0.01 per share, of the Company.    3.8 "Company" means SunCoke Energy, Inc., a Delaware corporation, or any successor thereto.    3.9 "Exchange Acf' means the Securities Exchange Act of 1934, as amended.    3.10 "Fair Market Value" means the closing price of a share of Common Stock on the New York  Stock Exchange.    3.11 "Incentive Stock Option" or "/SO" means an option granted under Article V that meets the  requirements of Section 422(b) (or any successor provision) of the Code.  

 

3   3.12 "Incumbent Board' has the meaning provided in Section 3.4(b).    3.13 "Just Cause" means, unless otherwise defined in an Award agreement, as determined by  the Committee:    (a) the willful and continued failure of the Participant to perform substantially the Participant's  duties with the Company and its Subsidiaries (other than any such failure resulting from incapacity due  to physical or mental illness), after a written demand for substantial performance is delivered to the  Participant by the Board of Directors or the Chief Executive Officer that specifically identifies the manner  in which the Board of Directors or the Chief Executive Officer believes that the Participant has not  substantially performed the Participant's duties;    (b) indictment of the Participant for a felony in connection with the Participant's employment  duties or responsibilities to the Company and its Subsidiaries that is not quashed within six months;    (c) conviction of Participant of a felony;    (d) willful conduct by the Participant in connection with the Participant's employment duties or  responsibilities to the Company and its Subsidiaries that is gross misconduct (including, but not limited  to, dishonest or fraudulent acts) and places the Company and its Subsidiaries at risk of material injury;  or    (e) the Participant's failure to comply with a policy of the Company and its Subsidiaries that  places the Company and its Subsidiaries at risk of material injury.    For purposes of this Section 3.13, no act, or failure to act, on the part of the Participant shall be considered  "willful" unless it is done, or omitted to be done, by the Participant in bad faith or without reasonable belief  that the Participant's action or omission was in the best interests of the Company. In addition, for purposes  of this Section 3.13, "injury" shall include, but not be limited to, financial injury and injury to the reputation  of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly  adopted by the Board of Directors or upon the instructions of the Chief Executive Officer or a senior officer  of the Company or based upon the advice of counsel for the Company shall be conclusively presumed  to be done, or omitted to be done, by the Participant in good faith and in the best interests of the Company.    3.14 "Key Employee" means an employee of the Company or any Subsidiary selected to  participate in the Plan. A Key Employee may also include a person who is granted an Award in connection  with the hiring of the person prior to the date the person becomes an employee of the Company or any  Subsidiary, provided that such Award shall not vest prior to the commencement of employment.    3.15 "Option" has the meaning provided in Section 5.1.    3.16 "Optionee" means the holder of an Option.    3.17 "Participanf' means a Key Employee selected to receive an Award under the Plan.    3.18 "Plan" means this SunCoke Energy, Inc. Long-Term Performance Enhancement Plan, as  amended from time to time.    3.19 "Qualifying Termination" means, unless otherwise defined in an Award agreement, with  respect to the employment of any Participant who is a participant in the SunCoke Energy, Inc. Special  

 

4   Executive Severance Plan, a "Qualifying Termination" as defined in such plan, and with respect to the  employment of any other Participant, the following:    (a) a termination of employment by the Company within 24 months after a Change in Control,  other than for Just Cause, death or permanent disability; or    (b) a termination of employment by the Participant within 24 months after a Change in Control  for one or more of the following reasons:  (i) the assignment to such Participant of any duties inconsistent in a way significantly  adverse to such Participant, with such Participant's positions, duties, responsibilities and status with  the Company and its Subsidiaries immediately prior to the Change in Control, or a significant  reduction in the duties and responsibilities held by the Participant immediately prior to the Change  in Control, in each case except in connection with such Participant's termination of employment by  the Company for Just Cause;  (ii) a reduction by the Company in the Participant's combined annual base salary and  guideline (target) bonus as in effect immediately prior to the Change in Control; or  (iii) the Company requires the Participant to be based anywhere other than the  Participant's present work location or a location within 35 miles from the present location; or the  Company requires the Participant to travel on Company business to an extent substantially more  burdensome than such Participant's travel obligations during the period of 12 consecutive months  immediately preceding the Change in Control;    provided, however, that in the case of any such termination of employment by a Participant under this  subparagraph (b), such termination shall not be deemed to  be a Qualifying Termination unless  (x) Participant has notified the Company in writing describing the occurrence of one or more such events  within 60 days of such occurrence, (y) the Company fails to cure such event within 30 days after its  receipt of such written notice and (z) the termination of employment occurs within 120 days after the  occurrence of such event.    3.20 "Restricted Stock'' has the meaning provided in Section 7.1.    3.21 "Share Units" has the meaning provided in Section 6.1.    3.22 "Stock Appreciation Righf' or "SAR' has the meaning provided in Section 8.1.    3.23 "Subsidiary" means any corporation, partnership, joint venture, limited liability company or  other entity during any period in which at least a 50% voting or profits interest is owned, directly or  indirectly, by the Company or any successor to the Company.    ARTICLE IV  TERM OF PLAN; ADMINISTRATION; TYPES OF AWARDS;  SHARES UNDER AWARDS; AWARD AGREEMENTS    4.1 Term of the Plan. No Awards shall be made under this Plan after February 14, 2028. The  Plan and all Awards made under the Plan prior to such date shall remain in effect until such Awards have  been satisfied or terminated in accordance with the Plan and the terms of such Awards.    4.2 Administration. The Plan shall be administered by the Committee, which shall have the  authority, in its sole discretion and from time to time to, among other things:    (a) designate the Participants;  

 

5   (b) grant Awards provided in the Plan in such form and amount as the Committee shall  determine;    (c) determine the terms and conditions of each Award under the Plan and impose such  limitations, restrictions and conditions upon any such Award including performance goals, in each case  as the Committee shall deem appropriate; and    (d) interpret the Plan, adopt, amend and rescind rules and regulations relating to the Plan, and  make all other determinations and take all other action necessary or advisable for the implementation  and administration of the Plan. The decisions and determinations of the Committee on all matters relating  to the Plan shall be in its sole discretion and shall be conclusive. No member of the Committee shall be  liable for any action taken or not taken or decision made or not made in good faith relating to the Plan or  any Award thereunder.    4.3 Types of Awards Under the Plan. Awards under the Plan may be in the form of any one or  more of the following:  (a) Options, as described in Article V;  (b) Share Units, as described in Article VI;  (c) Restricted Stock, as described in Article VII; and/or  (d) SARs, as described in Article VIII.    4.4 Shares Under Awards.  (a) The maximum number of shares of Common Stock that may be delivered to Participants  and their beneficiaries under the Plan shall be the sum of (i) the number of shares of Common Stock that  may be issuable upon exercise or vesting of any Awards initially granted under the Sunoco Long- Term  Incentive Plan and (ii) 7,500,000 (which reflects the shares previously authorized under the Plan and an  additional 1,500,000 shares to be issued under the Plan pursuant to this most recent amendment and  restatement). The limit set forth in this Section 4.4(a) shall be subject to the provisions of Section 9.7.  Shares subject to an Award under the Plan may be authorized and unissued Shares or may be treasury  Shares.    (b) During a calendar year, no single Participant who is a Key Employee may be granted:  (i) Options covering in excess of 1,000,000 shares of Common Stock; or  (ii) Awards in the form of Share Units or Restricted Stock covering in excess of 750,000  shares of Common Stock in the aggregate (or if such Award is settled in cash, an amount equal  to the Fair Market Value of such number of shares of Common Stock on the date on which the  Award is settled).    The limits set forth in this Section 4.4(b) shall be subject to the provisions of Section 9.7.    (c) The number of shares of Common Stock delivered by a Participant or beneficiary or withheld  by the Company on behalf of any such Participant or beneficiary as full or partial payment of an Award,  including the exercise price of an Option or of any required withholding taxes, shall not again be available  for issuance pursuant to subsequent Awards, and shall count towards the aggregate number of shares of  Common Stock that may be issued under the Plan. Any shares of Common Stock purchased by the  Company with proceeds from an Option exercise shall not again be available for issuance pursuant to  subsequent Awards, shall count against the aggregate number of shares that may be issued under the  Plan and shall not increase the number of shares available under the Plan. If  

 

6   there is a lapse, forfeiture, expiration, termination or cancellation of any Award for any reason, or if shares  of Common Stock are issued under such Award and thereafter are reacquired by the Company pursuant  to rights reserved by the Company upon issuance thereof, the shares of Common Stock subject to such  Award or reacquired by the Company shall again be available for issuance pursuant to subsequent  Awards, and shall not count towards the aggregate number of shares of Common Stock that may be  issued under the Plan.    4.5 Award Agreements.  (a) Each Award shall be evidenced by a written Award Agreement specifying the terms and  conditions of the Award. In the sole discretion of the Committee, the Award Agreement may condition the  grant of an Award upon the Participant's entering into one or more of the following agreements with the  Company: (i) an agreement not to compete with the Company which shall become effective as of the  date of the grant of the Award and remain in effect for a specified period of time following termination of  the Participant's employment with the Company; (ii) an agreement to cancel any employment agreement,  fringe benefit or compensation arrangement in effect between the Company and the Participant; and (iii)  an agreement to retain the confidentiality of certain information. Such agreements may contain such other  terms and conditions as the Committee shall determine. If the Participant shall fail to enter into any such  agreement at the request of the Committee, then the Award granted or to be granted to such Participant  shall be forfeited and cancelled.    (b) An Award Agreement shall contain a vesting schedule as determined in the sole discretion  of the Committee; provided that Options and SARs shall not become exercisable until at least one year  following the date of grant, and the restrictions on Restricted Stock and Share Units shall not lapse for  at least one year following the date of grant; and provided further that notwithstanding the foregoing, no  minimum vesting schedule shall apply to Awards that result in the issuance of up to an aggregate of 5%  of the shares of Common Stock reserved and available for issuance under Section 4.4(a).    ARTICLE V  OPTIONS    5.1 Award of Options. From time to time, subject to the provisions of the Plan and such other  terms and conditions as the Committee may prescribe, the Committee may grant to any Participant, one  or more Options to purchase the shares of Common Stock ("Options"). Options that are ISOs may be  granted only to Key Employees. The grant date for each Option shall be the date of the Committee action  to make the Award or, if later, the date selected by the Committee as the date of grant of the Option  pursuant to the Plan.    5.2 Option Agreements. The grant of an Option shall be evidenced by a written Option  agreement, executed by the Company and the holder of an Option, stating the number of shares subject  to the Option, the vesting terms, the treatment of the Option upon a Participant's termination of service,  and such other provisions as the Committee may from time to time determine.    5.3 Exercise Price. The per share exercise price of each Option shall be not less than the Fair  Market Value on the grant date.    5.4 Term and Exercise. The term and the vesting schedule of each Option shall be determined  by the Committee. No Option shall be exercisable after the expiration of its term and the maximum term  of any Option shall be ten years.  

 

7   5.5 Required Terms and Conditions of ISOs. In addition to the foregoing, each ISO granted to  a Key Employee shall be subject to the following specific rules:    (a) The aggregate exercise price of a Key Employee's ISOs that become exercisable for the  first time during a particular calendar year shall not exceed $100,000. If this dollar limit is exceeded, the  portion of the ISO that does not exceed the applicable limit shall be an ISO and the remainder shall not  be an ISO; but in all other respects, the original Option Agreement shall remain in full force and effect.    (b) Notwithstanding anything herein to the contrary, if an ISO is granted to a Key Employee  who owns more than 10% of the Common Stock (or stock possessing more than 10% of the total  combined voting power of all classes of stock of the Company and its Subsidiaries): (i) the exercise price  of the ISO shall be not less than 110% of the Fair Market Value on the ISO's grant date; and  (ii) the ISO shall expire, and all rights to purchase Common Stock thereunder shall expire, no later than  the fifth anniversary of the ISO's grant date.    (c) No ISOs shall be granted under the Plan after ten years from the earlier of the date the  Plan's ISO provisions are adopted or approved by stockholders of the Company.    5.6 Transferability.  (a) No Option may be transferred by the Participant other than by will, by the laws of descent  and distribution or, to the extent not inconsistent with the applicable provisions of the Code, pursuant to  a domestic relations order under applicable provisions of law, and during the Participant's lifetime the  Option may be exercised only by the Participant; provided, however, that, subject to such limits as the  Committee may establish, the Committee, in its discretion, may allow the Participant to transfer an Option  that is not an ISO for no consideration to, or for the benefit of, an immediate family member or to a bona  fide trust for the exclusive benefit of such immediate family member, or a partnership or limited liability  company in which immediate family members are the only partners or members. Immediate family  members are the Participant's spouse (including common law spouse), siblings, parents, children, step- children, adoptive relations and grandchildren, and shall include the Participant.    (b) A transfer pursuant to Section 5.6(a) may only be effected following advance written notice  from the Participant (or Participant's estate) to the Committee describing the terms and conditions of the  proposed transfer, and such transfer shall become effective only when recorded in the Company's record  of outstanding Options. Any such transfer pursuant to Section 5.6(a) is further conditioned on the  Participant and the immediate family member or other transferee agreeing to abide by the Company's  Option transfer guidelines. In the discretion of the Committee, the right to transfer an Option pursuant to  Section 5.6(a) also will apply to the right to transfer ancillary rights associated with such Option, and to  the right to consent to any amendment to the applicable Option agreement.    (c) Subsequent transfers by a transferee pursuant to Section 5.6(a) shall be prohibited except  in accordance with the laws of descent and distribution, or by will.    (d) Following any transfer pursuant to this Section 5.6, any transferred Option shall continue  to be subject to the same terms and conditions as were applicable immediately prior to transfer, and the  terms "Optionee" or "Participant" shall be deemed to include the transferee; provided, however, that the  terms governing exercisability of an Option that apply following any events of termination of employment  shall apply based on the employment status of the original Optionee. Neither the Committee nor the  Company will have any obligation to inform any transferee of an Option of any expiration, termination,  lapse or acceleration of such Option. The Company will have no obligation to register with any federal or  state securities commission or agency any Shares issuable or issued under an Option that has been  transferred by a Participant under this Section 5.6.  

 

8   (e) In no event shall a Participant be permitted to transfer an Option to a third party financial  institution without approval of the Company's stockholders.    5.7 Dividends/Dividend Equivalents. No dividends or dividend equivalents shall be paid with  respect to any shares subject to an Option prior to the exercise of the Option.    5.8 Manner of Payment. Each Option agreement shall set forth the procedure governing the  exercise of any portion of the Option granted thereunder, and shall provide that, upon such exercise, the  Optionee shall pay to the Company, in full, an amount equal to the product of (a) the exercise price and  (b) the number of shares of Common Stock with respect to which Optionee exercises the Option. A  Participant may pay the aggregate exercise price through cash payment (including cash received from  a broker-dealer to whom the Participant has submitted an exercise notice together with irrevocable  instructions to deliver promptly to the Company the amount of sales proceeds from the sale of the shares  subject to the Option necessary to pay the exercise price), the delivery of shares of Common Stock owned  by the Optionee, or by foregoing delivery of shares of Common Stock subject to the Option, in each case  having an aggregate Fair Market Value (as determined as of the date prior to exercise) equal to the  aggregate exercise price; provided, however, that any use of shares of Common Stock to satisfy the  aggregate exercise price must be in compliance with then applicable accounting rules.    ARTICLE VI  SHARE UNITS    6.1 Award of Share Units. The Committee, from time to time, and subject to the provisions of the  Plan, may grant to any Participant Awards denominated in shares of Common Stock ("Share Units")  that will be settled, subject to the terms and conditions of the Share Units, in an amount in cash, shares  of Common Stock or both. At the time it authorizes the grant of any Share Units, the Committee shall  condition the vesting of the Share Units upon (a) continued service of the applicable Participant and/or  (b) the attainment of performance goals. Settlement of Share Units shall be made either in shares of  Common Stock, or in cash, at the sole discretion of the Committee. The medium of payment shall be set  forth in the Committee's resolution granting the Share Units and in the Share Unit agreement with the  Participant.    6.2 Share Unit Agreements. Share Units granted under the Plan shall be evidenced by written  agreements stating the type of Share Units, the number of Share Units granted, the vesting and  settlement terms, the form of payment, the treatment of Share Units upon a Participant's termination of  service, and such other provisions as the Committee may from time to time determine.    6.3 Dividend Equivalents. Unless otherwise determined by the Committee, this Section 6.3 shall  govern the treatment of dividend equivalents. A holder of Share Units will be entitled to receive payment  from the Company in an amount equal to each cash dividend the Company would have paid to such  holder had he, on the record date for payment of such dividend, been the holder of record of shares of  Common Stock equal to the number of outstanding Share Units. The Company shall establish a  bookkeeping account on behalf of each Participant in which the dividend equivalents allocated to such  shall be credited. The dividend equivalent account will not bear interest. Vesting and payment of dividend  equivalents will correspond to the vesting and settlement of the Share Units with respect to which the  dividend equivalents relate.  

 

9   ARTICLE VII  RESTRICTED STOCK  7.1 Award of Restricted Stock.  (a) The Committee, from time to time, and subject to the provisions of the Plan, may grant to  any Participant Awards in the form of actual shares of Common Stock that are subject to restrictions on  transfer, the lapse of which restrictions is contingent upon continued service and/or the satisfaction of  performance conditions ("Restricted Stock''). Until such restrictions lapse, the shares of Restricted Stock  shall be held in "book-entry" form in the records of the Company's transfer agent, and no shares will be  delivered to the Participant until the applicable restrictions lapse.  7.2 Restricted Stock Agreements. Restricted Stock granted under the Plan shall be evidenced by  written agreements stating the number of shares of Restricted Stock granted, the vesting and settlement  terms, the treatment of the Award upon a Participant's termination of service, and such other provisions  as the Committee may from time to time determine.  7.3 Rights of a Stockholder. Except as provided in this Article and in the applicable Award  agreement, a Participant shall have, with respect to the shares of Restricted Stock, all of the rights of a  stockholder of the Company holding Common Stock, including, if applicable, the right to vote the shares  and the right to receive any cash dividends. Vesting and payment of any cash dividends will correspond  to the vesting of the Restricted Stock with respect to which such dividends relate. If so determined by the  Committee in the applicable Award agreement, (a) cash dividends on the Common Stock subject to the  Restricted Stock Award shall be automatically reinvested in additional Restricted Stock, subject to the  vesting of the underlying Restricted Stock, and (b) subject to any adjustment pursuant to Section 9.7,  dividends payable in Common Stock shall be paid in the form of Restricted Stock, held subject to the  vesting of the underlying Restricted Stock.  ARTICLE VIII  SARs  8.1 Award of Options. The Committee, from time to time, and subject to the provisions of the Plan  and such other terms and conditions as the Committee may prescribe, may grant to any Participant one  or more SARs, which upon exercise entitles the Participant to receive from the Company the number of  shares of Common Stock having an aggregate Fair Market Value equal to the excess of the Fair Market  Value of one share as of the date on which the SAR is exercised over the exercise price, multiplied by  the number of shares with respect to which the SAR is being exercised ("SAR"). The grant date for each  SAR shall be the date of the Committee action to make the Award or, if later, the date selected by the  Committee as the date of grant of the Option pursuant to the Plan.  8.2 SAR Agreements. The grant of an SAR shall be evidenced by a written SAR agreement,  executed by the Company and the holder of the SAR, stating the number of shares subject to the SAR,  the vesting terms, the treatment of the SAR upon a Participant's termination of service, and such other  provisions as the Committee may from time to time determine.  8.3 Exercise Price. The per share exercise price of each SAR shall be not less than the Fair  Market Value on the grant date.  8.4 Term and Exercise. The term and the vesting schedule of each SAR shall be determined by  the Committee. No SAR shall be exercisable after the expiration of its term and the maximum term of  any SAR shall be ten years.  8.5 Dividends/Dividend Equivalents. No dividends or dividend equivalents shall be paid with  respect to any SAR.  8.6 Manner of Payment. Each SAR agreement shall set forth the procedure governing the  exercise of any portion of the SAR granted thereunder, and shall provide that, upon such exercise, the  

 

10    Company shall (a) issue the total number of full shares of Common Stock to which the Participant is  entitled and cash in an amount equal to the Fair Market Value, as of the date of exercise, of any resulting  fractional share, and (b) if the Committee causes the Company to elect to settle all or part of its obligations  arising out of the exercise of the SAR in cash, deliver to the Participant an amount in cash equal to the  Fair Market Value, as of the date of exercise, of the shares it would otherwise be obligated to deliver.    ARTICLE IX  MISCELLANEOUS    9.1 General Restriction. Each Award under the Plan shall be subject to the requirement that if,  at any time, the Committee shall determine that: (a) the listing, registration or qualification of the shares  of Common Stock subject to the Award upon any securities exchange or under any state or Federal law;  (b) the consent or approval of any government regulatory body; or (c) an agreement by the recipient of  an Award with respect to the disposition of shares, is necessary or desirable as a condition of, or in  connection with, the granting of such Award or the issue or purchase of shares thereunder, then such  Award may not be consummated in whole or in part unless such listing, registration, qualification, consent,  approval or agreement shall have been effected or obtained free of any conditions not acceptable to the  Committee.  9.2 Non-Assignability. Except as otherwise set forth in Section 5.6 of the Plan, Awards shall not  be assignable or transferable by the recipient thereof, except by will or by the laws of descent and  distribution or to the extent not inconsistent with the applicable provisions of the Code, pursuant to a  domestic relations order under applicable provisions of law.  9.3 Right to Terminate Employment. Nothing in the Plan or in any agreement entered into  pursuant to the Plan shall confer upon any Participant the right to continue in the employment of the  Company, or affect any right which the Company may have to terminate the employment of, or service  by, such Participant. If an Affiliate ceases to be an Affiliate as a result of the sale or other disposition by  the Company or one of its continuing Affiliates of its ownership interest in the former Affiliate, or otherwise,  then individuals who remain employed by such former Affiliate thereafter shall be considered for all  purposes under the Plan to have terminated their employment relationship with the Company and its  Subsidiaries.  9.4 Non-Uniform Determinations. The Committee's determinations under the Plan (including  without limitation, determinations of the persons to receive Awards, the form, amount and timing of such  Awards, the terms and provisions of such Awards, and the agreements evidencing same) need not be  uniform and may be made by it selectively among persons who receive, or are eligible to receive, Awards  under the Plan, whether or not such persons are similarly situated.    9.5 Rights as a Stockholder; Share Delivery.  (a) Except as otherwise provided in Section 7.3 with respect to Restricted Stock, a Participant  receiving an Award under the Plan shall have no rights as a stockholder with respect thereto unless and  until shares of Common Stock are issued on behalf of such Participant.    (b) Shares of Common Stock issued pursuant to the settlement of an Award shall be  represented by stock certificates or issued on an uncertificated basis, with the ownership of such shares  by the Participant evidenced solely by book entry in the records of the Company's transfer agent;  provided, however, that upon the written request of the Participant, the Company shall issue, in the name  of the Participant, stock certificates representing such shares of Common Stock.    9.6 Leaves of Absence. The Committee shall be entitled to make such rules, regulations and  determinations as it deems appropriate under the Plan in respect of any leave of absence taken by the  

 

11   recipient of any Award. Without limiting the generality of the foregoing, the Committee shall be entitled to  determine (a) whether or not any such leave of absence shall constitute a termination of employment  within the meaning of the Plan and (b) the impact, if any, of any such leave of absence on Awards under  the Plan theretofore made to any recipient who takes such leaves of absence.    9.7 Adjustments.  (a) In the event of a stock dividend, stock split, reverse stock split, share combination, or  recapitalization or similar event affecting the capital structure of the Company, the Committee or Board  of Directors shall make an equitable and proportionate anti-dilution adjustment. Such mandatory  adjustment may include a change in one or more of the following: (i) the aggregate number of shares of  Common Stock reserved for issuance and delivery under Section 4.4(a) of the Plan; (ii) the individual  limits under Section 4.4(b) of the Plan; (iii) the number of shares or other securities subject to outstanding  Awards under the Plan; (iv) the exercise price of outstanding Options; and (v) other similar matters.    (b) In the event of a merger, amalgamation, consolidation, acquisition of property or shares,  separation, spinoff, other distribution of stock or property (including any extraordinary cash or stock  dividend), reorganization, stock rights offering, liquidation, or similar event affecting the Company or any  of its Subsidiaries that is not an event described in Section 9.7(a), the Committee or the Board of Directors  may in its discretion make such substitutions or adjustments as it deems appropriate and equitable to (i)  the aggregate number and kind of shares or other securities reserved for issuance and delivery under  Section 4.4(a) of the Plan; (ii) the individual limits under Section 4.4(b) of the Plan;  (iii) the number and kind of shares of Common Stock or other securities subject to outstanding Awards  under the Plan; (iv) the exercise price of outstanding Options; and (v) other similar matters, and such  adjustments may include, without limitation, (A) the cancellation of outstanding Awards granted under the  Plan in exchange for payments of cash, property or a combination thereof having an aggregate value  equal to the value of such Awards, as determined by the Committee or the Board of Directors in its sole  discretion (it being understood that in the case of a corporate transaction with respect to which holders  of Common Stock receive consideration other than publicly traded equity securities of the ultimate  surviving entity, any such determination by the Committee or the Board of Directors that the value of an  Option shall for this purpose be deemed to equal the excess, if any, of the value of the consideration  being paid for each share of Common Stock pursuant to such corporate transaction over the exercise  price of such Option shall conclusively be deemed valid), (B) the substitution of other property (including,  without limitation, cash or other securities of the Company and securities of entities other than the  Company) for the shares of Common Stock subject to outstanding Awards under the Plan, and (C)  arranging for the assumption of Awards granted under the Plan, or replacement of Awards granted under  the Plan with new Awards based on other property or other securities (including, without limitation, other  securities of the Company and securities of entities other than the Company), by the affected Subsidiary,  Affiliate, or division or by the entity that controls such Subsidiary, Affiliate, or division following such  transaction as well as any corresponding adjustments to Awards under the Plan that remain based upon  Company securities.    9.8 Change in Control. The Committee may provide in any Award agreement for provisions  relating to a Change in Control, including, without limitation, the acceleration of the exercisability of, or  the lapse of restrictions or deemed satisfaction of goals with respect to, any outstanding Awards.    9.9 Amendment of the Plan; Amendment of Awards.  (a) The Committee may amend, alter, or discontinue the Plan, but no amendment, alteration or  discontinuation shall be made which would materially impair the rights of the Participant with respect to  a previously granted Award without such Participant's consent, except such an amendment made to  comply with applicable law, including without limitation Section 409A of the Code, stock exchange rules  

 

12   or accounting rules. In addition, no such amendment shall be made without the approval of the  Company's stockholders to the extent such approval is required by applicable law or the listing standards  of the applicable exchange on which the Common Stock is listed.    (b) The Committee may unilaterally amend the terms of any Award theretofore granted, but no  such amendment shall cause an Award, without the Participant's consent, to materially impair the rights  of any Participant with respect to an Award, except such an amendment made to cause the Plan or Award  to comply with applicable law, stock exchange rules or accounting rules.    (c) Notwithstanding the foregoing and except as described in Section 9.7, there shall be no  amendment to the Plan or any outstanding Option agreement or SAR agreement that results in the  repricing of Options or SARs without stockholder approval. For this purpose, repricing includes (i) a  reduction in the exercise price of an Option or SAR or (ii) the cancellation of an Option or SAR in exchange  for cash, Options or SARs with an exercise price less than the exercise price of the cancelled Options  or SARs, other Awards or any other consideration provided by the Company.    9.10 Required Taxes. When an amount first becomes includible in the gross income of a  Participant for federal, state, local or foreign income or employment or other tax purposes with respect to  any Award under the Plan, as a condition to the issuance or delivery of any shares of Common Stock  to the Participant in connection therewith, the Company shall require the Participant to pay the Company  the minimum amount of the tax required to be withheld, and in the Company's sole discretion, the  Company may permit the Participant to pay up to the maximum individual statutory rate of applicable  withholding. The Committee in its sole discretion may make available one or more of the following  alternatives for the payment of such taxes: (a) in cash; (b) in cash received from a broker- dealer to whom  the Participant has submitted notice together with irrevocable instructions to deliver promptly to the  Company the amount of sales proceeds from the sale of the shares subject to the Award to pay the  withholding taxes; (c) by directing the Company to withhold such number of shares of Common Stock  otherwise issuable in connection with the Award having an aggregate Fair Market Value equal to the  amount of tax to be withheld; or (d) by delivering previously acquired shares of Common Stock that have  an aggregate Fair Market Value equal to the amount to be withheld. The Committee shall have the sole  discretion to establish the terms and conditions applicable to any alternative made available for payment  of the withholding taxes.    9.11 Section 409A of the Code. It is the intention of the Company that no Award shall be  "deferred compensation" subject to Section 409A of the Code, unless and to the extent that the  Committee specifically determines otherwise as provided in the immediately following sentence, and the  Plan and the terms and conditions of all Awards shall be interpreted accordingly. The terms and  conditions governing any Awards that the Committee determines will be subject to Section 409A of the  Code, including any rules for elective or mandatory deferral of the delivery of cash or shares pursuant  thereto and any rules regarding treatment of such Awards in the event of a Change in Control, shall be  set forth in the applicable Award Agreement, and shall comply in all respects with Section 409A of the  Code. Notwithstanding any other provision of the Plan to the contrary, with respect to any Award that  constitutes a "nonqualified deferred compensation plan" subject to Section 409A of the Code, any  payments (whether in cash, shares or other property) to be made with respect to the Award upon the  Participant's termination of employment shall be delayed until the first day of the seventh month following  the Participant's termination of employment if the Participant is a "specified employee" within the meaning  of Section 409A of the Code.    9.12 Governing Law. This Plan shall be construed in accordance with and governed by the laws  of the State of Delaware.sxc202110kex108

SunCoke Energy, Inc.  Special Executive Severance Plan  Exhibit 10.8                        ====================================================================                          SUNCOKE ENERGY, INC.  SPECIAL EXECUTIVE SEVERANCE PLAN  (Effective as of December 8, 2021)                             

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 1 of 15  SUNCOKE ENERGY, INC.  SPECIAL EXECUTIVE SEVERANCE PLAN  ARTICLE I  DEFINITIONS  1.1.  “Annual Compensation” shall mean a Participant’s annual base salary as in effect  immediately prior to the Change in Control, or, if greater, immediately prior to the Employment  Termination Date, plus the greater of (x) the Participant’s annual guideline (target) bonus as in  effect immediately before the Change in Control or, if higher, the Employment Termination Date,  or (y) the average annual bonus awarded to the Participant with respect to the three years ending  before the Change in Control or, if higher, with respect to the three years ending before the  Employment Termination Date.   1.2.  “Affiliate” shall mean any entity that directly, or indirectly through one or more  intermediaries, controls, is controlled by, or is under common control with SunCoke Energy, Inc.   1.3.  “Benefit” or “Benefits” shall mean any or all of the benefits that a Participant is  entitled to receive pursuant to Article IV of the Plan.   1.4.  “Benefit Extension Period” shall mean, for each Participant, two years.   1.5.  “Board of Directors” shall mean the Board of Directors of SunCoke Energy, Inc.   1.6.  “Business Combination” shall have the meaning provided herein at Section 1.7(c).   1.7.  “Change in Control” shall mean the occurrence of any of the following events:     (a) The acquisition by any individual, entity or group (within the meaning of  Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership  (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent  (20%) or more of either: (i) the then-outstanding shares of common stock of SunCoke  Energy, Inc. (the “Outstanding Company Common Stock”) or (ii) the combined voting  power of the then-outstanding voting securities of SunCoke Energy, Inc. entitled to vote  generally in the election of directors (the “Outstanding Company Voting Securities”);   provided, however, that, for purposes of this Section 1.7(a), the following acquisitions shall  not constitute a Change in Control:    (A) any acquisition directly from SunCoke Energy, Inc.,   (B) any acquisition by SunCoke Energy, Inc.,   (C) any acquisition by any employee benefit plan (or related trust)  sponsored or maintained by SunCoke Energy, Inc. or any company controlled by,  controlling or under common control with SunCoke Energy, Inc., or   (D) any acquisition by any entity pursuant to a transaction that complies  with Sections 1.7(c)(1), (c)(2) and (c)(3) of this definition;   

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 2 of 15  (b) Individuals who, as of the date that the plan becomes effective, constitute the  Board of Directors (the “Incumbent Board”) cease for any reason to constitute at least a  majority of the Board of Directors; provided, however, that any individual becoming a  director subsequent to the date hereof whose election, or nomination for election by the  shareholders of SunCoke Energy, Inc., was approved by a vote of at least a majority of the  directors then comprising the Incumbent Board shall be considered as though such  individual were a member of the Incumbent Board, but excluding, for this purpose, any  such individual whose initial assumption of office occurs as a result of an actual or  threatened election contest with respect to the election or removal of directors or other  actual or threatened solicitation of proxies or consents by or on behalf of a Person other  than the Board of Directors;   (c) Consummation of a reorganization, merger, statutory share exchange or  consolidation or similar corporate transaction involving SunCoke Energy, Inc. or any of its  subsidiaries, a sale or other disposition of all or substantially all of the assets of SunCoke  Energy, Inc., or the acquisition of assets or stock of another entity by SunCoke Energy,  Inc. or any of its subsidiaries (each, a “Business Combination”), in each case unless,  following such Business Combination,   (i) all or substantially all of the individuals and entities that were the  beneficial owners of the Outstanding Company Common Stock and the  Outstanding Company Voting Securities immediately prior to such Business  Combination beneficially own, directly or indirectly, more than fifty percent (50%)  of the then-outstanding shares of common stock and the combined voting power of  the then-outstanding voting securities entitled to vote generally in the election of  directors, as the case may be, of the corporation resulting from such Business  Combination (including, without limitation, a corporation that, as a result of such  transaction, owns SunCoke Energy, Inc. or all or substantially all of the assets of  SunCoke Energy, Inc., either directly or through one or more subsidiaries) in  substantially the same proportions as their ownership immediately prior to such  Business Combination of the Outstanding Company Common Stock and the  Outstanding Company Voting Securities, as the case may be,   (ii) no Person (excluding any corporation resulting from such Business  Combination or any employee benefit plan (or related trust) of SunCoke Energy,  Inc. or such corporation resulting from such Business Combination or any of their  respective subsidiaries) beneficially owns, directly or indirectly, twenty percent  (20%) or more of, respectively, the then-outstanding shares of common stock of the  corporation resulting from such Business Combination or the combined voting  power of the then-outstanding voting securities of such corporation, except to the  extent that such ownership existed prior to the Business Combination, and   (iii) at least a majority of the members of the board of directors of the  corporation resulting from such Business Combination were members of the  Incumbent Board at the time of the execution of the initial agreement or of the  action of the Board of Directors providing for such Business Combination; or   (d) Approval by the shareholders of SunCoke Energy, Inc. of a complete liquidation  or dissolution of SunCoke Energy, Inc.  

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 3 of 15  1.8.  “Chief Executive Officer” shall mean the individual serving as the Chief Executive  Officer of SunCoke Energy, Inc. as of the date of reference.   1.9.  “Code” shall mean the Internal Revenue Code of 1986, as amended.   1.10.  “Committee” shall mean the administrative committee designated pursuant to Article  VI of the Plan to administer the Plan in accordance with its terms.   1.11.  “Company” shall mean SunCoke Energy, Inc., and any Affiliate.   1.12.  “Company Service” shall mean, for purposes of determining Benefits available to  any Participant in this Plan, the total aggregate recorded length of such Participant’s service with  SunCoke Energy, Inc. or any Affiliate (while it is an Affiliate).  Company Service shall commence  with the Participant’s initial date of employment with the Company, and shall end with such  Participant’s death, retirement, or termination for any reason. Company Service also shall include:   (a) all periods of approved leave of absence (civil, family, medical, military, or  Olympic); provided, however, that the Participant returns to work within the prescribed  time following the leave;   (b) any break in service of thirty (30) days or less; and   (c) any service credited under applicable Company policies with respect to the  length of a Participant’s employment by any non-affiliated entity that subsequently  becomes an Affiliate or part of the operations of the Company.   1.13.  “Disability” shall mean any illness, injury or incapacity of such duration and type as  to render a Participant eligible to receive long-term disability benefits under the applicable broad- based long-term disability program of the Company.   1.14.  “Compensation Committee” shall mean the compensation committee of the Board  of Directors.   1.15.  “Employment Termination Date” shall mean the date on which a Participant  separates from service as defined in Section 409A of the Internal Revenue Code of 1986, as  amended (the “Code”) and the regulations issued thereunder.   1.16.  “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as  amended.   1.17.  “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.   1.18.  “Incumbent Board” shall have the meaning provided herein at Section 1.7(b).   1.19.  “Involuntary Plan” shall mean the SunCoke Energy, Inc. Executive Involuntary Severance  Plan.       

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 4 of 15  1.20.  “Just Cause” shall mean:   (a) the willful and continued failure of the Participant to substantially perform the  Participant’s duties with the Company (other than any such failure resulting from  incapacity due to physical or mental illness or following notice of employment termination  by the Participant pursuant to Section 1.26(b)), after a written demand for substantial  performance is delivered to the Participant by the Board of Directors or the Chief Executive  Officer that specifically identifies the manner in which the Board of Directors or the Chief  Executive Officer believes that the Participant has not substantially performed the  Participant’s duties, or   (b) the willful engaging by the Participant in illegal conduct or gross misconduct  that is materially and demonstrably injurious to the Company.    For purposes of this Section 1.20, no act, or failure to act, on the part of the Participant  shall be considered “willful” unless it is done, or omitted to be done, by the Participant in bad faith  or without reasonable belief that the Participant’s action or omission was in the best interests of  the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly  adopted by the Board or upon the instructions of the Chief Executive Officer or a senior officer of  the Company or based upon the advice of counsel for the Company shall be conclusively presumed  to be done, or omitted to be done, by the Participant in good faith and in the best interests of the  Company.    1.21.  “Outstanding Company Common Stock” shall have the meaning provided herein at  Section 1.7(a).   1.22.  “Outstanding Company Voting Stock” shall have the meaning provided herein at Section  1.7(a).   1.23.  “Participant” shall mean any individual officer or executive designated by the Chief  Executive Officer of the Company on or before the occurrence of any Change in Control; provided,  however, that such individual is employed by the Company on or before such Change in Control.   For purposes of Section 4.6 of this Plan, each former officer or executive designated by the Chief  Executive Officer also shall be a Participant.  1.24.  “Person” shall have the meaning provided herein at Section 1.7(a).   1.25.  “Plan” shall mean the SunCoke Energy, Inc. Special Executive Severance Plan, as  set forth herein, and as the same may from time to time be amended.   1.26. “Qualifying Termination” of the employment of a Participant shall mean any of the  following:   (a) a termination of employment by the Company within two (2) years after a  Change in Control, other than for Just Cause, death or Disability;   (b) a termination of employment by the Participant within two (2) years after a  Change in Control for one or more of the following reasons:   (i) the assignment to such Participant of any duties inconsistent in a way  significantly adverse to such Participant, with such Participant’s positions, duties,  

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 5 of 15  responsibilities and status with the Company immediately prior to the Change in  Control, or a significant reduction in the duties or responsibilities held by the  Participant immediately prior to the Change in Control, or a significant change in  the Participant’s reporting responsibilities, title or offices as in effect immediately  prior to the Change in Control that is adverse to the Participant, in each case except  in connection with such Participant’s termination of employment by the Company  for Just Cause; or   (ii) a material reduction in the Participant’s (A) annual base salary or (B)  total annual compensation opportunity, from such base salary or total annual  compensation opportunity in effect immediately prior to the Change in Control; or   (iii) the Company requires the Participant to be based anywhere other than  the Participant’s present work location or a location within thirty-five (35) miles  from the present location; or the Company requires the Participant to travel on  Company business to an extent substantially more burdensome than such  Participant’s travel obligations during the period of twelve (12) consecutive months  immediately preceding the Change in Control; or   (iv) the Company fails to obtain a satisfactory agreement from any  successor to assume and perform this Plan, as contemplated by Section 10.11  hereof, or   (v) any other action or inaction that constitutes a material breach by the  Company of this Plan with respect to such Participant,  (each of clauses (i) through (v), a “Good Reason Event”); provided, however, that in the case of  any such termination of employment by the Participant under this subparagraph (b), such  termination shall not be deemed to be a Qualifying Termination unless (x) Participant has notified  the Company in writing describing the occurrence of one or more Good Reason Events within  sixty (60) days of such occurrence, (y) the Company fails to cure such Good Reason Event within  thirty (30) days after its receipt of such written notice and (z) the termination of employment occurs  within one hundred twenty (120) days after the occurrence of the applicable Good Reason Event.  1.27.  “SunCoke Energy, Inc.” shall mean SunCoke Energy, Inc., a Delaware corporation,  and any successor thereto by merger, consolidation, liquidation or purchase of assets or stock or  similar transaction.   ARTICLE II  BACKGROUND, PURPOSE AND TERM OF PLAN  2.1.  Background.  SunCoke Energy, Inc. maintains this Plan for the purpose of providing  severance allowances to Participants whose employment is terminated in connection with or  following a Change in Control. This amendment and restatement of the  Plan shall be effective as  of December 8, 2021.   2.2.  Purpose of the Plan.  The Plan, as set forth herein, has been adopted by the Board of  Directors, or a committee thereof, delegated such responsibility, acting in its sole discretion, in  recognition that the possibility of a major transaction or a Change in Control exists and that such  

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 6 of 15  possibility, and the uncertainty and questions which it may raise among management, may result  in the departure or distraction of key management personnel to the detriment of the Company. The  Board of Directors has determined that appropriate steps should be taken to reinforce and  encourage the continued attention and dedication of Participants, as key members of Company’s  management, to their assigned duties without distraction.   2.3.  Term of the Plan.  The Plan will continue until such time as the Board of Directors,  or a committee thereof, delegated such responsibility, acting in its sole discretion, elects to modify,  supersede or terminate it; provided, however, that no such action taken after a Change in Control,  or before, but in connection with, a Change in Control, may terminate or reduce the benefits or  prospective benefits of any individual who is a Participant on the date of the action without the  express written consent of the Participant.   ARTICLE III  PARTICIPATION AND ELIGIBILITY FOR BENEFITS  3.1.  General Requirements.  Participants shall be designated in accordance with Section  1.23. Except with respect to the benefits and payments under Section 4.6, in order to receive a  Benefit under this Plan, a Participant’s employment must have been terminated as a result of a  Qualifying Termination.   3.2.  Qualifying Termination.  The Committee shall determine whether any termination of  a Participant is a Qualifying Termination. The Participant shall follow the procedures described in  Article IX for presenting his or her claim for Benefits under this Plan.   ARTICLE IV  BENEFITS  4.1.  Amount of Immediate Cash Benefit; Qualifying Termination.  In the event of a  termination of employment that would qualify the Participant for Benefits that is a Qualifying  Termination, the cash amount to be paid to a Participant eligible to receive Benefits under Section  3.1 hereof shall be paid as provided in Section 5.1 hereof and shall equal the sum of the following:   (a) An amount equal to the Participant’s earned vacation (as determined under the  Company’s applicable vacation policy as in effect at the time of the Change in Control)  through his or her Employment Termination Date;   (b) for each Participant, Annual Compensation multiplied by two (2);  (c) In addition to the annual compensation benefit described in Section 4.1(b) hereof,  a Participant in this Plan, who is also an “Eligible Employee” for purposes of the SunCoke  Energy, Inc. Annual Incentive Plan, will be entitled to payment of the following amounts:  (i)  Prior Year Bonus.  Such Participant whose Employment Termination  Date occurs prior to April 1 of a calendar year will be entitled to the annual cash  bonus payable pursuant to the SunCoke Energy, Inc. Annual Incentive Plan for the  prior year, but only to the extent not yet paid.  

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 7 of 15  (ii)  Pro-rated Current Year Bonus.  Such Participant whose Employment  Termination Date occurs between April 1 and December 31 of a calendar year will  be entitled to a one-time portion of the current year target annual cash bonus for  which the Participant is eligible pursuant to the SunCoke Energy, Inc. Annual  Incentive Plan, pro-rated and adjusted for actual Company performance for the  calendar year in which the Employment Termination Date occurs, in accordance with  the terms and provisions of the SunCoke Energy, Inc. Annual Incentive Plan, based  on such Participant’s salary or wages earned through the Employment Termination  Date.  The applicable pro rata portion will be equal to a fraction, the denominator of  which will be 12, and numerator of which will be the number of full calendar months  during the calendar year the Participant worked.  Subject to Section 5.1 hereof, to the  extent applicable, such prorated bonus will be paid on the customary payout date  under the SunCoke Energy, Inc. Annual Incentive Plan.  4.2.  Executive Severance Benefits.  In the event that Benefits are paid under Section 4.1,  the Participant shall continue to be entitled, through the end of his/her Benefit Extension Period,  to those employee benefits, based upon the amount of coverage or benefits provided at the Change  in Control, listed below:   (a) Death benefits in an amount equal to one (1) times the Participant’s annual base  salary at the Employment Termination Date (provided, however, that any supplemental  coverages elected under the SunCoke Energy, Inc. Death Benefits Plan (or any similar plan  of any of the following: a subsidiary or affiliate which has adopted this Plan; a corporation  succeeding to the business of SunCoke Energy, Inc.; and/or any subsidiary or affiliate, by  merger, consolidation or liquidation or purchase of assets or stock or similar transaction)  will be discontinued under the terms of such plan or plans); and   (b) Medical plan benefits (including dental coverage), with COBRA continuation  eligibility beginning as of the end of the Benefit Extension Period.   In each case, when contributions are required of all Executive Resource Employees at the  time of the Participant’s Employment Termination Date, or thereafter, if required of all other active  Executive Resource Employees, the Participant shall continue to be responsible for making the  required contributions during the Benefit Extension Period in order to be eligible for the coverage.  The difference between the cost for such medical plan benefits under Code Section 4980B and the  amount of the necessary contributions that a Participant is required to pay for such coverage as  provided above will be paid by the Company and considered imputed income to such Participant.   Each Participant is responsible for the payment of income tax due as a result of such imputed  income. Each Participant also shall be entitled to reasonable outplacement services during the  Benefit Extension Period, at no cost to the Participant (but only to the extent such services are  provided no later than the end of the second calendar year following the year of the Participant’s  Employment Termination Date and are paid for directly by the Company no later than the end of  the third calendar year following the year of the Participant’s Employment Termination Date),  from an experienced third-party vendor selected by the Committee and consistent with vendors  used in connection with the SunCoke Energy, Inc. Involuntary Termination Plan immediately  before the Change in Control.     

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 8 of 15  4.3.  Retirement and Savings Plans.  This Plan shall not govern and shall in no way affect  the Participant’s interest in, or entitlement to benefits under, any of the Company’s “qualified” or  supplemental retirement plans, and payments received under any such plans shall not affect a  Participant’s right to any Benefit hereunder.   4.4.  Relationship to Involuntary Plan.  If a Participant becomes entitled to receive  severance benefits under this Plan, the Participant shall not be entitled to any benefits under the  Involuntary Plan.  4.5.  Effect on Other Benefits.  There shall not be drawn from the continued provision by  the Company of any of the aforementioned Benefits any implication of continued employment or  of continued right to accrual of retirement benefits under the Company’s qualified or supplemental  retirement plans, nor shall a terminated employee, except as otherwise provided under the terms  of the Plan, accrue vacation days, paid holidays, paid sick days or other similar benefits normally  associated with employment for any part of the Benefit Extension Period during which benefits  are payable under this Plan. A Participant shall have no duty to mitigate with respect to Benefits  under this Plan by seeking or accepting alternative employment. Further, the amount of any  payment or benefit provided for in this Plan shall not be reduced by any compensation earned by  the Participant as the result of employment by another employer, by retirement benefits, by offset  against any amount claimed to be owed by the Participant to the Company, or otherwise.   4.6.  Legal Fees and Expenses.  The Company also shall pay to the Participant (or the  Participant’s representative) all legal fees and expenses incurred by or with respect to the  Participant during his lifetime or within ten (ten) years after his death:   (a) in disputing in good faith any issue relating a Qualifying Termination entitling  the Participant to Benefits under this Plan (including any good faith dispute regarding  whether or not a Qualifying Termination has occurred); or   (b) in seeking in good faith to obtain or enforce any benefit or right provided by  this Plan (or the payment of any Benefits through any trust established to fund Benefits  under this Plan).   Such payments shall be made as such fees and expenses are incurred by the Participant (or the  Participant’s representative), but in no event later than five (5) business days after delivery of the  Participant’s (or Participant’s representative’s) written requests for payment accompanied with such  evidence of fees and expenses incurred as the Company reasonably may require. Notwithstanding the  foregoing sentence, all such payments shall be made on or before the close of the calendar year  following the calendar year in which the expense was incurred. The amount of expenses eligible for  reimbursement under this provision in one calendar year may not affect the amount of expenses eligible  for reimbursement under this provision in any other calendar year. The Participant (or Participant’s  representative) shall reimburse the Company for such fees and expenses at such time as a court of  competent jurisdiction, or another independent third party having similar authority, determines that the  Participant’s claim was frivolously brought without reasonable expectation of success on the merits  thereof.   4. 7.  Excise Tax Reduction. If in connection with the Change in Control (i) a Participant  would be or is subject to an excise tax under Section 4999 of the Internal Revenue Code (an  “Excise Tax”) with respect to the Benefits, or any other cash, benefits or other property received,  

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 9 of 15  or any acceleration of vesting of any benefit or award (the “Change in Control Benefits”), and (ii)  the total net after-tax amount of the Participant's Change in Control Benefits (after taking into  account federal, state and local income and employment taxes and the Excise Tax) is less than the  pre-tax Change in Control Benefits reduced to the largest amount that would not trigger the  imposition of such Excise Tax, then the Participant's Benefits shall be so reduced so that no Excise  Tax is imposed.    Within 15 days after the Participant's termination of employment, a nationally recognized  accounting firm selected by the Company shall make a determination as to whether any Excise  Tax would be reported with respect to the Change in Control Benefits and, if so, the amount of the  Excise Tax, the total net after-tax amount of the Change in Control Benefits (after taking into  account federal, state and local income and employment taxes and the Excise Tax) and the amount  of reduction to the Change in Control Benefits necessary to avoid such Excise Tax.  To the extent  permitted by Section 409A of the Internal Revenue Code of 1986, as amended (“Code Section  409A”), the Participant shall determine the particular Change in Control Benefits to be reduced,  and the Company shall provide the Participant with such information as is necessary to make such  determination.  The Company shall be responsible for all fees and expenses connected with the  determinations by the accounting firm pursuant to this Section 4. 7.  The Participant agrees to  notify the Company in the event of any audit or other proceeding by the IRS or any taxing authority  in which the IRS or other taxing authority asserts that any Excise Tax should be assessed against  the Participant and to cooperate with the Company in contesting any such proposed assessment  with respect to such Excise Tax.  ARTICLE V  METHOD AND DURATION OF BENEFIT PAYMENTS  5.1.  Method of Payment.  Subject to the last sentence of Section 5.1, the cash Benefits to  which a Participant is entitled, as determined pursuant to Article IV hereof, shall be paid in a lump  sum. Payment shall be made by mailing to the last address provided by the Participant to the  Company. In general, subject to the last sentence of this Section 5.1, payment shall be made within  fifteen (15) days after the Participant’s Employment Termination Date but in no event later than  thirty (30) days thereafter; provided, however, that payment of any Benefits under any provision  of the Plan that are deferred compensation for purposes of Code Section 409A to any Participant  who is a specified employee determined in accordance with Code Section 409A (a “Specified  Employee”) to the extent required by Code Section 409A shall be paid in a lump sum on the later  of the date such payments are due or the date that is six months after the Participant’s Employee  Termination Date. In the event the Company should fail to pay when due the amounts described  in Article IV (determined without regard to the payment delay to Specified Employees required  by Code Section 409A), the Participant shall also be entitled to receive from the Company an  amount representing interest on any unpaid or untimely amounts from the due date (determined  without regard to the payment delay to Specified Employees required by Code Section 409A) to  the date of payment at a rate equal to the prime rate of Citibank, N.A. as in effect from time to  time after such due date.  Notwithstanding anything to the contrary contained in this Plan, if (x) a  Participant also participates in the Involuntary Plan and (y) the Change in Control does not  constitute a “change in the ownership of the corporation,” a “change in effective control of the  corporation” or a “change in the ownership of a substantial portion of the assets of the corporation”  within the meaning of Section 409A(a)(2)(A)(v) of the Code, then payment of the cash Benefits  

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 10 of 15  provided under Section 4.1(b) of the Plan shall be made in equal monthly installments in  accordance with Section 5.1 of the Involuntary Plan and during a number of months equal to the  number of months that would apply to such Participant based on Section 1.5(b) of the Involuntary  Plan.  5.2.  Payments After Death.  The Participant’s estate shall receive any Benefits due  hereunder in the event of the Participant’s death prior to the receipt of all such Benefits.   ARTICLE VI  ADMINISTRATION  6.1.  Appointment of the Committee.  The Committee shall consist of three (3) or more  persons appointed by the Compensation Committee. Committee members may be, but need not  be, employees of SunCoke Energy, Inc. Following a Change in Control, the individuals most  recently so appointed to serve as members of the Committee before the Change in Control, or  successors whom they approve, shall continue to serve as the Committee.   6.2.  Tenure of the Committee.  Before a Change in Control, Committee members shall  serve at the pleasure of the Compensation Committee and may be discharged, with or without  cause, by the Compensation Committee. Committee members may resign at any time on ten (10)  days’ written notice.   6.3.  Authority and Duties.  It shall be the duty of the Committee, on the basis of information  supplied to it by the Company, to determine the eligibility of each Participant for Benefits under the  Plan, to determine the amount of Benefit to which each such Participant may be entitled, and to  determine the manner and time of payment of the Benefit consistent with the provisions hereof.  In  addition, the exercise of discretion by the Committee need not be uniformly applied to similarly  situated Participants.  The Company shall make such payments as are certified to it by the Committee  to be due to Participants.  The Committee shall have the full power and authority to construe,  interpret and administer the Plan, to correct deficiencies therein, and to supply omissions.  Except as  provided in Section 9.2, all decisions, actions and interpretations of the Committee shall be final,  binding and conclusive upon the parties.   6.4.  Action by the Committee.  A majority of the members of the Committee shall  constitute a quorum for the transaction of business at a meeting of the Committee. Any action of  the Committee may be taken upon the affirmative vote of a majority of the members of the  Committee at a meeting, or at the direction of the chairperson, without a meeting by mail,  telegraph, telephone or electronic communication device; provided that all of the members of the  Committee are informed of their right to vote on the matter before the Committee and of the  outcome of the vote thereon.   6.5.  Officers of the Committee.  The Compensation Committee shall designate one of the  members of the Committee to serve as chairperson thereof. The Compensation Committee shall  also designate a person to serve as Secretary of the Committee, which person may be, but need not  be, a member of the Committee.   

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 11 of 15  6.6.  Compensation of the Committee.  Members of the Committee shall receive no  compensation for their services as such. However, all reasonable expenses of the Committee shall  be paid or reimbursed by the Company upon proper documentation. The Company shall indemnify  members of the Committee against personal liability for actions taken in good faith in the discharge  of their respective duties as members of the Committee and shall provide coverage to them under  the Company’s Liability Insurance program(s).   6.7.  Records, Reporting and Disclosure.  The Committee shall keep all individual and  group records relating to Participants and former Participants and all other records necessary for  the proper operation of the Plan. Such records shall be made available to the Company and to each  Participant for examination during business hours except that a Participant shall examine only such  records as pertain exclusively to the examining Participant and to the Plan. The Committee shall  prepare and shall file as required by law or regulation, all reports, forms, documents and other  items required by ERISA, the Internal Revenue Code, and every other relevant statute, each as  amended, and all regulations thereunder (except that the Company, as payor of the Benefits, shall  prepare and distribute to the proper recipients all forms relating to withholding of income or wage  taxes, Social Security taxes, and other amounts which may be similarly reportable).   6.8.  Actions of the Chief Executive Officer.  Whenever a determination is required of the  Chief Executive Officer under the Plan, such determination shall be made solely at the discretion  of the Chief Executive Officer. In addition, the exercise of discretion by the Chief Executive  Officer need not be uniformly applied to similarly situated Participants and shall be final and  binding on each Participant or beneficiary(ies) to whom the determination is directed.   6.9.  Bonding.  The Committee shall arrange any bonding that may be required by law, but  no amount in excess of the amount required by law (if any) shall be required by the Plan.   ARTICLE VII  AMENDMENT AND TERMINATION  7.1.  Amendment, Suspension and Termination.  The Company, acting through the Board  of Directors, retains the right, at any time and from time to time, to amend, suspend or terminate  the Plan in whole or in part, for any reason, and without either the consent of or the prior  notification to any Participant. Notwithstanding the foregoing, no such action that is taken after a  Change in Control or before, but in connection with, a Change in Control, may terminate or reduce  the benefits or prospective benefits of any Participant on the date of such action without the express  written consent of the Participant. No amendment, suspension or termination shall give the  Company the right to recover any amount paid to a Participant prior to the date of such action or  to cause the cessation and discontinuance of payments of Benefits to any person or persons under  the Plan already receiving Benefits. The Board of Directors shall have the right to delegate its  authority and powers hereunder, or any portion thereof, to any committee of the Board of Directors,  and shall have the right to rescind any such delegation in whole or in part.      

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 12 of 15  ARTICLE VIII  DUTIES OF THE COMPANY  8.1.  Records.  The Company shall supply to the Committee all records and information  necessary to the performance of the Committee’s duties.   8.2.  Payment.  The Company shall make payments from its general assets to Participants  and shall provide the Benefits described in Article IV hereof in accordance with the terms of the  Plan, as directed by the Committee.   ARTICLE IX  CLAIMS PROCEDURES  9.1.  Application for Benefits.  Benefits shall be paid by the Company following an event  that qualifies the Participant for Benefits. In the event a Participant believes himself/herself eligible  for Benefits under this Plan and Benefit payments have not been initiated by the Company, the  Participant may apply for such Benefits by requesting payment of Benefits in writing from the  Committee.   9.2.  Appeals of Denied Claims for Benefits.  In the event that any claim for Benefits is  denied in whole or in part, the Participant (or beneficiary, if applicable) whose claim has been so  denied shall be notified of such denial in writing by the Committee, within thirty (30) days  following submission by the Participant (or beneficiary, if applicable) of such claim to the  Committee. The notice advising of the denial shall specify the reason or reasons for denial, make  specific reference to pertinent Plan provisions, describe any additional material or information  necessary for the claimant to perfect the claim (explaining why such material or information is  needed), and shall advise the Participant of the procedure for the appeal of such denial.  All appeals  shall be made by the following procedure:   (a) The Participant whose claim has been denied shall file with the Committee a  notice of desire to appeal the denial. Such notice shall be filed within sixty (60) days of  notification by the Committee of the claim denial, shall be made in writing, and shall set  forth all of the facts upon which the appeal is based. Appeals not timely filed shall be  barred.   (b) The Committee shall, within thirty (30) days of receipt of the Participant’s  notice of appeal, establish a hearing date on which the Participant may make an oral  presentation to the Committee in support of his/her appeal. The Participant shall be given  not less than ten (10) days’ notice of the date set for the hearing.   (c) The Committee shall consider the merits of the claimant’s written and oral  presentations, the merits of any facts or evidence in support of the denial of benefits, and  such other facts and circumstances as the Committee shall deem relevant. If the claimant  elects not to make an oral presentation, such election shall not be deemed adverse to his/her  interest, and the Committee shall proceed as set forth below as though an oral presentation  of the contents of the claimant’s written presentation had been made.   

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 13 of 15  (d) The Committee shall render a determination upon the appealed claim, within  sixty (60) days of the hearing date, which determination shall be accompanied by a written  statement as to the reasons therefor.   ARTICLE X  MISCELLANEOUS  10.1.  Nonalienation of Benefits.  None of the payments, benefits or rights of any  Participant shall be subject to any claim of any creditor, and, in particular, to the fullest extent  permitted by law, all such payments, benefits and rights shall be free from attachment,  garnishment, trustee’s process, or any other legal or equitable process available to any creditor of  such Participant. No Participant shall have the right to alienate, anticipate, commute, pledge,  encumber or assign any of the benefits or payments which he/she may expect to receive,  contingently or otherwise, under this Plan.  10.2.  No Contract of Employment.  Neither the establishment of the Plan, nor any  modification thereof, nor the creation of any fund, trust or account, nor the payment of any benefits  shall be construed as giving any Participant, or any person whosoever, the right to be retained in  the service of the Company, and all Participants shall remain subject to discharge to the same  extent as if the Plan had never been adopted.  10.3.  Severability of Provisions.  If any provision of this Plan shall be held invalid or  unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and  this Plan shall be construed and enforced as if such provisions had not been included.   10.4.  Successors, Heirs, Assigns, and Personal Representatives.  This Plan shall be binding  upon the heirs, executors, administrators, successors and assigns of the parties, including each  Participant, present and future.  10.5.  Headings and Captions.  The headings and captions herein are provided for reference  and convenience only, shall not be considered part of the Plan, and shall not be employed in the  construction of the Plan.   10.6.  Gender and Number.  Except where otherwise clearly indicated by context, the  masculine and the neuter shall include the feminine and the neuter, the singular shall include the  plural, and vice-versa.   10.7.  Unfunded Plan.  The Plan shall not be funded. A Participant’s right to receive  payment of Benefits hereunder shall be no greater than the right of any unsecured creditor of the  Company. The Company may, but shall not be required to, set aside or earmark an amount  necessary to provide the Benefits specified herein (including the establishment of trusts). In any  event, no Participant shall have any right to, or interest in, any assets of the Company which may  be applied by the Company to the payment of Benefits except as may be provided pursuant to the  terms of any trust established by the Company to provide Benefits.   10.8.  Payments to Incompetent Persons, Etc.  Any Benefit payable to or for the benefit of  a minor, an incompetent person or other person incapable of receipting therefor shall be deemed  

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 14 of 15  paid when paid to such person’s guardian or to the party providing or reasonably appearing to  provide for the care of such person, and such payment shall fully discharge the Company, the  Committee and all other parties with respect thereto.   10.9.  Lost Payees.  A Benefit shall be deemed forfeited if the Committee is unable to locate  a Participant to whom a Benefit is due. Such Benefit shall be reinstated if application is made by  the Participant for the forfeited Benefit while this Plan is in operation.   10.10.  Controlling Law.  This Plan shall be construed and enforced according to the laws  of the State of Delaware to the extent not preempted by federal law, without giving effect to  principles of conflicts of law.   10.11.  Successor Employer.  The Company shall require any successor or assignee,  whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially  all the business or assets of the Company, expressly and unconditionally to assume and agree to  perform the Company’s obligations under this Plan, in the same manner and to the same extent  that the Company would be required to perform if no such succession or assignment had taken  place. In such event, the term “Company” shall mean the Company and any successor or assignee  to the business or assets which by reason hereof becomes bound by the terms and provisions of  this Plan.  10.12.  Code Section 409A.  This Plan is intended to comply with the requirements of Code  Section 409A or an exemption or exclusion therefrom and, with respect to amounts that are subject  to Code Section 409A, shall in all respects be administered in accordance with Code Section 409A;  provided, however, that the Company makes no representations that Benefits under the Plan shall  be exempt from or comply with Section 409A and makes no undertaking to preclude Section 409A  from applying to Benefits under the Plan and shall not be liable for any penalties or costs to a   Participant resulting from the application of Code Section 409A to Benefits hereunder.  Each  payment under this Plan shall be treated as a separate payment for purposes of Code Section 409A.   In no event may a Participant, directly or indirectly, designate the calendar year of any payment to  be made under this Agreement.  Notwithstanding anything to the contrary in this Plan, all  reimbursements and in-kind benefits provided under this Plan shall be made or provided in  accordance with the requirements of Section 409A of the Code, including, where applicable, the  requirement that:   (a) any reimbursement is for expenses incurred during the Participant’s lifetime (or  during a shorter period of time specified in this Plan);   (b) the amount of expenses eligible for reimbursement, or in-kind benefits provided,  during a calendar year may not affect the expenses eligible for reimbursement, or in-kind  benefits to be provided, in any other calendar year, except, if such benefits consist of the  reimbursement of expenses referred to in Section 105(b) of the Code, a maximum, if  provided under the terms of the plan providing such medical benefit, may be imposed on  the amount of such reimbursements over some or all of the period in which such benefit is  to be provided to the Participant as described in Treasury Regulation Section 1.409A- 3(i)(iv)(B);   (c) the reimbursement of an eligible expense will be made no later than the last day  of the calendar year following the year in which the expense is incurred, provided that the  Participant shall have submitted an invoice for such fees and expenses at least ten (10) days  

 

SunCoke Energy, Inc.  Special Executive Severance Plan  Page 15 of 15  before the end of the calendar year next following the calendar year in which such fees and  expenses were incurred; and   (d) the right to reimbursement or in-kind benefits is not subject to liquidation or  exchange for another benefit.

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