Document:

Exhibit

EXHIBIT  10.6

AWARD AGREEMENT 
under the 
SUNCOKE ENERGY, INC. LONG-TERM CASH INCENTIVE PLAN
This Award Agreement (the “Agreement”), is entered into as of __________________, 2016, 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 Cash Incentive Plan (the “LTIP”) is administered by the Compensation Committee (the “Committee”), and the Committee has determined to grant to the Participant, pursuant to the terms and conditions of the LTIP, an award (the “Award”), representing the opportunity to receive a cash payment following the end of a Performance Period, with the payout of such Award being conditioned upon the attainment of one or more Performance Goals established by the Committee for the applicable Performance Period and the Participant’s continued employment with SunCoke or one of its Affiliates.
NOW, THEREFORE, in consideration of these premises and the mutual promises of each of the Parties herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, SunCoke and the Participant, each intending to be legally bound hereby, agree as follows:
ARTICLE I 
AWARD
1.1    Acceptance of Award.  The Award is conditioned upon its acceptance by the Participant in the space provided therefore at the end of this Agreement and the return of an executed copy of this Agreement to Gary Yeaw, the Senior Vice President Human Resources, no later than March 17, 2016.
1.2    Identifying Provisions.  For purposes of this Agreement, the following terms shall have the following respective meanings:
(a)    Participant:  
(b)    Target Award:  $_____
(c)    Performance Period:  Three-year period ending on December 31, 2018
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 LTIP.
1.3    Grant of Award.  Subject to the terms and conditions of the LTIP and this Agreement, the Participant is hereby granted the target Award set forth in Section 1.2. 

Page 1 of 1

1.4    Adjustment, Vesting and Payment of Award.
(a)    Adjustment.  The target Award shall be adjusted by the Committee after the end of the Performance Period, based on the level of achievement of the Performance Goal 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”.
(b)    Vesting.  Except as set forth in Section 1.5(a), (b) and (c) below, a Participant shall become vested in his Award (as adjusted pursuant to (a) above) if he remains in continuous employment with SunCoke or one of its Affiliates until the Determination Date.  An Award that does not vest shall be forfeited.
(c)    Payment.  Except as set forth in Section 1.5(a) and (c) below, actual payment for Award shall be made to the Participant within one month after the Determination Date.
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 Just Cause or due to death or permanent disability, the Participant’s target Award shall remain outstanding and shall be adjusted at the end of the Performance Period as described in Section 1.4(a).  The Participant shall vest in a pro rata portion of the adjusted Award determined by multiplying the Award by a fraction, the numerator of which is the number of full 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 portion of the Participant’s Award that vests shall be paid in cash within one month following the Determination Date, and the portion that does not vest shall be forfeited.
(b)    Qualifying Termination of Employment.  In the event of the Participant’s Qualifying Termination prior to the Determination Date, the Participant’s outstanding Award shall vest immediately at the higher of (i) the target level or (ii) the actual performance level based on the Performance Goal calculated from the beginning of the Performance Period to the end of the fiscal quarter ending on or immediately prior to the date of the Change in Control, and shall be paid in cash 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 Award shall not be adjusted pursuant to Section 1.4(a) above, but shall vest immediately at the target level and be paid in cash within one month following such termination of employment.  For purposes of this Section 1.5(c), 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.
(d)    In the event the Participant’s employment is terminated prior to the Determination Date by SunCoke or an Affiliate for Just Cause, the Participant’s Award shall be forfeited.

Page 2 of 2

ARTICLE II     
GENERAL PROVISIONS
2.1    Effect of Plan; Construction.  The entire text of the LTIP 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 Award covered by this Agreement and the terms and conditions of the LTIP under which such Award is granted, the provisions in the LTIP shall govern and prevail.  The Award 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 LTIP, as the same may have been amended from time to time in accordance with its terms.
2.2    Tax Withholding.  The payment of an Award under this Agreement shall be net of any applicable federal, state, or local withholding taxes.
2.3    Administration.  Pursuant to the LTIP, the Committee is vested with conclusive authority to interpret and construe the LTIP, to adopt rules and regulations for carrying out the LTIP, and to make determinations with respect to all matters relating to this Agreement, the LTIP 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 LTIP.  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.
2.4    Amendment.  This Agreement may be amended in accordance with the terms of the LTIP.
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

Page 3 of 3

		
	(b)
	If to the Participant:    To the address for the 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 cash payment received in connection with the Award granted pursuant to this Agreement constitutes incentive compensation.  The Participant agrees that any  cash payment 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.
*     *     *
IN WITNESS WHEREOF, this Agreement is delivered by the Company as of the ___ day of ______ 2016.
	
		
	 
	SunCoke Energy, Inc.

By:                  

Its:                  

	AGREED AND ACCEPTED:

Participant

               
Signature

               
Print Name

               
Date
	 

Page 4 of 4

SunCoke Energy, Inc. 
Long Term Cash Incentive Plan
Award Agreement
Exhibit A

	
						
	SunCoke 2016 - to 2018 Performance Goal

	 
	 
	 
	 
	 
	 

	 
	 
	Threshold
	Target
	Maximum
	 

	 
	Weight
	0%
	100%
	200%
	 

	Average Pre-Tax Return on Invested Capital (2016 - 2018) Coke, Logistics and Unallocated Corporate
	100%
	10.0%
	13.0%
	16.0%
	 

	Performance between threshold, target and maximum will be adjusted proportionately
Multiplier:  If the Committee determines that at any time during the Performance Period the closing price of the Company’s common stock equaled or exceeded $9.00 on any 15 trading days, the Award as adjusted pursuant to the chart above shall be multiplied by two (2), but shall be capped at 200% of the target Award.

At the end of the Performance Period (December 31, 2018), the target Award will be multiplied by the performance payout percentage, which is based on the level of attainment of the Performance Goal (including the Multiplier, if applicable) for the Performance Period, subject to a maximum payment equal to 200% of the target Award. 

CH2\17836605.2  

Page 5 of 5Exhibit

EXHIBIT 10.7

SUNCOKE ENERGY, INC.

SECOND AMENDMENT 
TO THE 
SAVINGS RESTORATION PLAN

WHEREAS, SunCoke Energy, Inc. (the “Company”) maintains the SunCoke Energy, Inc. Savings Restoration Plan (the “Plan”); and

WHEREAS, the Company now deems it advisable and in the best interests of the Company to amend the Plan to provide that upon a change in control of the Company (i) the Plan shall terminate as of the effective date of the change in control and (ii) all Plan accounts shall be distributed to Plan participants in an immediate lump sum payment.

NOW, THEREFORE, BE IT RESOLVED, that the Plan is hereby amended, effective as of June 1, 2015, as follows:

1.    Section V of the Plan is amended by adding a new Section V.6 to read as follows:

6.    Plan Termination

Notwithstanding the foregoing, upon a Change in Control of the Company, amounts credited to participants’ book accounts shall be distributed in accordance with Section VII.1.B.

2.    Section VII.1 of the Plan is amended to read as follows:

1.    Right to Terminate

A.    In General.  This Plan may be terminated at any time by the Company.  The Company or any participating employer may terminate participation in this Plan with respect to its employees participating in the SunCoke Plan.  If a participating employer shall terminate the SunCoke Plan with respect to its employees, this Plan shall be terminated automatically with respect to future calendar years.  Except as provided in Section B below, upon termination of the Plan, the amounts credited to participants’ book accounts under this Plan shall be distributed to such participants in accordance with the terms of the Plan and the participants’ existing elections.

B.    Change in Control.  Notwithstanding Section A above, in the event of a Change in Control of the Company, the Plan shall automatically terminate with respect to all participants, and the amounts credited to participants’ book accounts shall be distributed to the participants in a lump sum cash payment within five business days following the Change in Control.  Such Plan termination and distribution of accounts shall be effectuated in accordance with Code Section 409A and Treas. Reg. § 1.409A-3(j)(4)(ix)(B).

Page 1

EXHIBIT 10.7

3.    Section VII.7 of the Plan is amended by adding a new Section VII.7.L to read as follows:

L.    Change in Control.  Change in Control 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 of the Company (the “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 became effective, constituted 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.

(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 

Page 2

EXHIBIT 10.7

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.

For purposes of this definition, “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.

Notwithstanding the foregoing, in no event shall a Change in Control be deemed to have occurred if the event could not constitute a Change in Control as described in Code Section 409A(a)(2)(A)(v) and Treas. Reg. § 1.409A-3(i)(5).

Page 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00257-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00257-of-00352.parquet"}]]