Document:

Michael J. Thompson Letter

  
 Exhibit 10.4

  

			
	  

 

	  	 Dennis Zeleny

	  	 Senior Vice President and

	  	 Chief Human Resources Officer

	  	
	  	  
 Sunoco, Inc.

	  	 1735 Market Street Ste LL

	  	 Philadelphia PA 19103-7583

	  	 215 977 3222

	  	 Fax 215 977 3131

	  	 dzeleny@sunocoinc.com

 September 2, 2010 
 Mr. Michael J. Thomson 

599 Beacon Court 
 Lenoir City, TN 37772

 Dear Mike: 
 This letter agreement (“Letter Agreement”) serves to set forth the terms of the compensation arrangement between Sunoco, Inc. and you in connection with Sunoco’s separation of SunCoke
Energy, either by means of a spin-off transaction, including an initial public offering, (following which SunCoke would be an independent publicly-traded company) (“Spin-Off”) or by means of a sale transaction (following which SunCoke
would be owned by an entity other than Sunoco) (“Sale”). For purposes of this Letter Agreement, the term Transaction refers to the Spin-Off or Sale, as applicable. This letter agreement is subject to final approval by the Compensation
Committee of Sunoco, Inc. 
 Because your leadership is very important to the successful execution of the
Transaction, Sunoco is prepared to offer you the following incentive arrangement to ensure that Sunoco and SunCoke will have the benefit of your continued employment as described below: 

Compensation Terms: 

1. Payments Upon Consummation of Transaction. Subject to the completion (the “Closing”) of the
Transaction on or prior to January 1, 2012 and your continuous employment with Sunoco or SunCoke through the date of the Closing: 
 (a) Sunoco shall pay to you, as soon as reasonably practicable (but in no event later than the fifteenth business day following the Closing), a lump sum cash payment in the amount of $500,000, less
applicable tax and other withholdings. 
 (b) (i) In the event of a Spin-Off, as soon as reasonably practicable
following the occurrence of the Spin-Off, SunCoke will grant to you a number of SunCoke share units equal to the quotient obtained by dividing $500,000 by the closing price of SunCoke common stock on the grant date, which share units shall vest on
the earlier of (A) the one year anniversary of the Spin-Off, subject to your employment with SunCoke on such vesting date, or (B) the termination of your employment with SunCoke due to death or Disability, or by SunCoke (other than for
Just Cause). In the 

 
event of any other termination of your employment prior to the one year anniversary of the Spin-Off, you will forfeit any share units granted pursuant to this clause (i). Except as specifically
provided herein, the terms and conditions of the share units shall be subject to the terms and conditions of SunCoke’s equity incentive plan and SunCoke’s standard form of award agreement. 

(ii) In the event of a Sale, subject to your employment with SunCoke through the applicable payment event
set forth in clause (A) or (B) below, on the earlier of (A) the one-year anniversary of the Sale, and (B) the termination of your employment due to death or Disability, or by SunCoke (other than for Just Cause), SunCoke shall pay
to you, as soon as reasonably practicable (but in no event later than the fifteenth business day following such payment event) a lump sum cash payment in the amount of $500,000, less applicable tax and other withholdings. In the event of any other
termination of your employment prior to the one year anniversary of the Sale, you will forfeit the right to any payment pursuant to this clause (ii). 
 (c) (i) In the event that SunCoke terminates your employment (other than for Just Cause and other than as a result of your death or Disability) following a Spin-Off, (A) if the termination of
employment occurs on or after January 3, 2012 and prior to March 3, 2012, SunCoke shall pay to you a lump sum cash payment in an amount equal to the “Unvested Option Award Value (Spin-Off),” and (B) if the termination of
employment occurs on or after May 3, 2012 and prior to July 2, 2012, SunCoke shall pay to you a lump sum cash payment in an amount equal to the “Unvested CSU Award Value (Spin-Off).” In the event of any other termination of your
employment, you will forfeit the right to any payment pursuant to this clause (i). Any payments required by this clause (i) shall be made as soon as reasonably practicable, but in no event later than the fifteenth business day following the
date of your termination of employment. 
 (ii) In the event that SunCoke terminates your
employment (other than for Just Cause and other than as a result of your death or Disability) following a Sale, (A) if the termination of employment occurs on or after January 3, 2012 and prior to March 3, 2012, SunCoke shall pay to
you a lump sum cash payment in an amount equal to the “Unvested Option Award Value (Sale),” and (B) if the termination of employment occurs on or after May 3, 2012 and prior to July 2, 2012, SunCoke shall pay to you a lump
sum cash payment in an amount equal to the “Unvested CSU Award Value (Sale).” In the event of any other termination of your employment, you will forfeit the right to any payment pursuant to this clause (ii). Any payments required by this
clause (ii) shall be made as soon as reasonably practicable, but in no event later than the fifteenth business day following the date of your termination of employment. 
 Just to clarify, you will have no rights pursuant to this Section 1 if you receive a payment pursuant to Section 2 of this Letter Agreement. 

  
 2 

  
 2.
Payment if Transaction Not Consummated. If a Transaction is not consummated by January 1, 2012, and you remain employed by Sunoco or SunCoke through January 1, 2012, Sunoco shall pay to you a lump sum cash payment of $200,000, less
applicable tax and other withholdings, no later than January 16, 2012. This payment will be in lieu of any payments and incentives described in Section 1 above. 

Other Terms: 
 3. Defined Terms: 
 (a) “Disability” as used in
this Letter Agreement shall have the same meaning as that term is defined in the Sunoco, Inc. Executive Involuntary Severance Plan (as of March 3, 2010). 
 (b) “Just Cause” as used in this Letter Agreement shall have the same meaning as that term is defined in the Sunoco, Inc. Executive Involuntary Severance Plan (as of March 3, 2010).

 (c) “Unvested Option Award Value (Sale)” means an amount equal to the product obtained by
multiplying (i) the number of Sunoco shares underlying the portion of the option granted to you on March 3, 2010 (A) that initially was scheduled to vest on March 3, 2012 and (B) that has not vested previously by
(ii) the excess, if any of (A) the closing price of Sunoco common stock on the date of your termination of employment (or if such day is not a trading day on the trading day immediately following such day) over (B) the per share
exercise price of such option. 
 (d) “Unvested CSU Award Value (Sale)” means an amount equal to the
product obtained by multiplying (i) the number of Sunoco common stock units from the July 2, 2008 grant (A) that initially were scheduled to vest on July 2, 2012 and (B) that have not vested previously by (ii) the
closing price of Sunoco common stock on the date of your termination of employment (or if such day is not a trading day on the trading day immediately following such day). 

(e) “Unvested Option Award Value (Spin-Off)” means an amount equal to the product obtained by multiplying
(i) the number of SunCoke shares underlying the portion of the option granted to you on March 3, 2010 (as adjusted in connection with the Spin-Off) (A) that initially was scheduled to vest on March 3, 2012 and (B) that has
not vested previously by (ii) the excess, if any of (A) the closing price of SunCoke common stock on the date of your termination of employment (or if such day is not a trading day on the trading day immediately following such day) over
(B) the per share exercise price of such option (as adjusted in connection with the Spin-Off). 
 (f)
“Unvested CSU Award Value (Spin-Off)” means an amount equal to the product obtained by multiplying (i) the number of SunCoke common stock units from the July 2, 2008 grant (as adjusted in connection with the Spin-Off)
(A) that initially were scheduled to vest on July 2, 2012 and (B) that have not vested previously by (ii) the closing price of SunCoke common stock on the date of your termination of employment (or if such day is not a trading
day on the trading day immediately following such day). 

  
 3 

  
 4.
Employment Rights. Nothing expressed or implied in this Letter Agreement will create any right or duty on the part of Sunoco or SunCoke or you to have you remain in the employment of Sunoco or SunCoke. Nothing in this Letter Agreement shall
affect any rights you may have under any agreement or plan of Sunoco or SunCoke in the event of your termination of employment, including without limitation the Sunoco, Inc. Executive Involuntary Severance Plan (as of March 3, 2010).

 5. Assignability. Sunoco, in its discretion, may assign this Letter Agreement to SunCoke or any of its
successors or to any entity that acquires SunCoke in a Sale, and upon such assignment, any obligations of Sunoco under this Letter Agreement shall become obligations of such assignee. 

6. Entire Agreement. This Letter Agreement constitutes the entire agreement of the parties with respect to the
subject matter set forth above and supersedes any and all prior agreements, arrangements, communications, whether oral or written in respect to the matters covered in this Letter Agreement. Notwithstanding the foregoing, nothing in this Letter
Agreement is intended to or shall supersede or modify in any respect, your benefits or obligations under any other agreements that you may have previously entered into or under any of Sunoco’s or SunCoke’s plans 

7. Governing Law. This Letter Agreement shall be governed by, and construed and enforced in accordance with, the
laws of the Commonwealth of Pennsylvania. This Letter Agreement may be amended, modified or supplemented, only by a written instrument executed by both you and Sunoco. 

IN WITNESS WHEREOF, the parties hereto have executed this Letter Agreement as of the day and year first set forth above,

  

			
	 SUNOCO, INC.

		
	 By:
	 	 /s/ Dennis Zeleny

	 Name:
	 	 Dennis Zeleny

	 Title:
	 	Senior Vice President and Chief Human Resources Officer
	 Date:
	 	 9/30/10

  

			
	 Accepted and Agreed:

	
	 /s/ Michael J. Thomson

	 Michael J. Thomson

	 Date:
	 	 9/30/10

  

			
	 cc:
	  	 L. L. Elsenhans

		  	 C. J. Cunningham

  
 4ModusLink Global Solutions, Inc. FY 2011 Executive Management Incentive Plan

  
 Exhibit 10.1

 ModusLink Global Solutions, Inc. 
 FY 2011 Executive Management Incentive Plan 
  

	1.	Purpose 

 The
objective of the FY 2011 Executive Management Incentive Plan (“2011 EMIP Plan” or “Plan”) is to recognize and reward the achievement of financial, business and management goals that are essential to the success of ModusLink
Global Solutions, Inc. and its subsidiaries. 
  

	2.	Period of Effectiveness 

 This Plan relates to the 2011 fiscal year, August 1, 2010 to July 31, 2011. 
  

	3.	Eligibility 

  

	 	A.	Certain executive employees of the Company, as determined by the Committee, are eligible to be Participants. The Company will issue all Participants a notice of their
eligibility and their individual Plan components by providing a document in the form of Appendix A to each eligible Participant. 

  

	 	B.	To be eligible for any payment under the Plan, a Participant must be an active employee of the Company on the date actual Plan payments are made, provided, however,
that a Participant will remain eligible for a payment under the Plan to the extent such Participant (i) was employed by the Company for the Plan Period and (ii) has his or her employment with the Company involuntarily terminated by the
Company without Cause after the Plan Period but prior to the date Plan payments are made. 

  

	4.	Definitions 

 As
used herein, the following capitalized terms shall have the following definitions: 
  

	 	A.	“Base Salary” is the total actual amount of base salary earned by the Participant during the Plan Period (or portion thereof) during which the Participant was
a Participant. 

  

	 	B.	 “Cause” means a good faith finding by a majority of the members of the Board of Directors of the Company, after giving the Participant an
opportunity to be heard, of: (i) grossly negligent or willful misconduct by the Participant in connection with his or her employment duties, (ii) failure by the Participant (other than due to disability) to perform his or her duties or
responsibilities required pursuant to his or her employment, after written notice and an opportunity to cure, (iii) misappropriation by the Participant of the assets or business opportunities of the Company, or its affiliates,
(iv) embezzlement or other financial or other fraud committed by the Participant, (v) the Participant knowingly allowing any third party to commit any of the acts 

	 	 
described in any of the preceding clauses (iii) or (iv), or (vi) the Participant’s indictment for, conviction of, or entry of a plea of no contest with respect to, any felony or
any crime involving moral turpitude. 

  

	 	C.	“Committee” means the Human Resources and Compensation Committee of the Board of Directors of ModusLink Global Solutions, Inc. 

 

	 	D.	“Free Cash Flow,” as used herein, means “Net cash (used in) provided by operating activities of continuing operations” minus “Additions to
property and equipment” as each such line item appears and is reported in the Company’s publicly filed financial statements, excluding the impact of (i) any acquisitions or divestitures, (ii) any goodwill impairment,
(iii) any change to @Ventures budgeted expenses and (iv) any expenses related to the Company’s 2010 director nomination process and the resolution thereof. 

 

	 	E.	“ModusLink” or the “Company” means ModusLink Global Solutions, Inc. and its subsidiaries. 

 

	 	F.	“Operating Income,” as used herein, means operating income as reported in the Company’s publicly filed financial statements, excluding the impact of
(i) any acquisitions or divestitures, (ii) any goodwill impairment, (iii) any change to @Ventures budgeted expenses and (iv) any expenses related to the Company’s 2010 director nomination process and the resolution thereof.

  

	 	G.	“Participants” mean those certain designated executive ModusLink employees whose roles and responsibilities are deemed by the Committee to be critical to
operations and who have direct responsibility for or impact on achieving the financial results of the Company. 

  

	 	H.	“Payout Amount” means any payout made under this Plan. 

  

	 	I.	“Plan Period” or “Fiscal Year” means the time period from August 1, 2010 through July 31, 2011. 

 

	 	J.	“Revenue,” means revenue as reported in the Company’s publicly filed financial statements, excluding the impact of any acquisitions or divestitures.

  

	 	K.	“Target Payout Percentage” as used herein, means the bonus percentage that will be earned at full achievement of goals for all Plan components at their
“target” levels in each of the Plan Periods. 

  

	5.	Target Payout Percentage 

 Participants will be assigned a Target Payout Percentage for the 2011 EMIP Plan, expressed as a percentage of Base Salary. The Target Payout Percentage will vary according to the Participant’s
position. Actual payout percentage will vary based on the factors described in Section 6 below. 

  
  

Page 2. 

  

	6.	Components and Targets 

 The Payout Amounts will be determined based upon achievement against Revenue, Operating Income, and Free Cash Flow targets. A percentage of each Participant’s Target Payout Percentage will be
allocated to each of the relevant components for that Participant on a 40%, 40% and 20% basis among Revenue, Operating Income and Free Cash Flow, respectively. 
  

	 	A.	Revenue 

 Each
Participant’s Target Payout Percentage will include a component based on a Revenue target. Each Participant will be informed of the “Threshold Level,” the “Target Level” and the “Maximum Level” for Revenue for the
Plan Period. 
  

	 	B.	Operating Income 

 Each
Participant’s Target Payout Percentage will include a component based on an Operating Income target. Each Participant will be informed of the “Threshold Level,” the “Target Level” and the “Maximum Level” for
Operating Income for the Plan Period. 
  

	 	C.	Free Cash Flow 

 Each
Participant’s Target Payout Percentage will include a component based on a Free Cash Flow target. Each Participant will be informed of the “Threshold Level,” the “Target Level” and the “Maximum Level” for Free Cash
Flow for the Plan Period. 
  

	7.	No Gate 

 Each
component (Revenue, Operating Income, and Free Cash Flow) will be separately considered in calculating performance against targets and therefore no “gate” will apply to payouts under this Plan. 

No payout will be made without approval from the Committee. 

 

	8.	Calculation of Achievement and Overachievement Adjustments 

  

	 	A.	Revenue 

 In the event
that the Threshold Level for Revenue is achieved, each Participant would be eligible to receive a portion of the Revenue component of his or her Target Payout Percentage based on a pro rata sliding scale running between 25% to 100% based on the
spread between the Threshold Level and the Target Level. If Revenue exceeds the Target Level, the total payout made to the Participant for Revenue will be based on a pro rata sliding scale running between 100% and 200% based on the spread between
the Target Level and the Maximum Level. 

  
  

Page 3. 

  

	 	B.	Operating Income 

 In the event
that the Threshold Level for Operating Income is achieved, each Participant would be eligible to receive a portion of the Operating Income component of his or her Target Payout Percentage based on a pro rata sliding scale running between 25% to 100%
based on the spread between the Threshold Level and the Target Level. If Operating Income exceeds the Target Level, the total payout made to the Participant for Operating Income will be based on a pro rata sliding scale running between 100% and 200%
based on the spread between the Target Level and the Maximum Level. 
  

	 	C.	Free Cash Flow 

 In the event
that the Threshold Level for Free Cash Flow is achieved, each Participant would be eligible to receive a portion of the Free Cash Flow component of his or her Target Payout Percentage based on a pro rata sliding scale running between 25% to 100%
based on the spread between the Threshold Level and the Target Level. If Free Cash Flow exceeds the Target Level, the total payout made to the Participant for Revenue will be based on a pro rata sliding scale running between 100% and 200% based on
the spread between the Target Level and the Maximum Level. 
  

	9.	Payout Calculations 

  

	 	A.	A Participant’s Payout Amount will be calculated by multiplying for each component (A) the Target Payout Percentage, by (B) the weight percentage
associated with the component per Section 6 above, by (C) the achievement level for such component computed in accordance with Section 8 above, by (D) the Participant’s Base Salary; and then adding the three resulting
amounts. 

  

	 	B.	If the employee’s Target Payout Percentage changes during the Fiscal Year, the bonus payout will be pro-rated as follows: The new Target Payout Percentage will
apply to the number of full months at the new target. The previous Target Payout Percentage will apply to the prior months. 

  

	 	C.	Results exceeding the Maximum Level will be eligible for additional payouts at the discretion of the Board. 

 

	 	D.	The payments will be made in accordance with the Company’s normal payroll practices. 

 

	10.	Administration of Plan; Miscellaneous Matters 

  

	 	A.	Payment on any particular occasion of any bonus amount in accordance with this Plan shall not create the presumption that any further bonus amount will be paid to the
Participant thereafter under this Plan or otherwise. 

  
  

Page 4. 

  

	 	B.	Participants who live and work in a non-United States location will have their Plan payout calculations performed and payouts issued in their local currency, unless a
specific ex-patriate or other employment agreement specifically provides otherwise. 

  

	 	C.	The adoption of this Plan shall not be deemed to give any employee the right to be retained in the employ of ModusLink Global Solutions or its subsidiaries or to
interfere with the right of the Company to dismiss any employee at any time, for any reason not prohibited by law nor shall it be deemed to give the Company the right to require any employee to remain in its employ. 

 

	 	D.	Payments under this Plan are not to be considered for any purpose as part of the Participant’s base salary or wages. 

 

	 	E.	The financial targets assigned and recognized as goals on any of the performance factors may be removed, revised or otherwise modified by the Committee at any time for
any reason or for no reason. 

  

	 	F.	The Committee’s interpretation of the Plan is final and is in the sole and absolute discretion of the Committee. The Committee shall define and interpret the Plan
components in their sole discretion. The Committee reserves the right to make final and binding decisions regarding the amount of incentive, if any, to be paid to any Participant. The Committee also reserves the right to amend, terminate and modify
this Plan at any time in its sole discretion with or without notice. Each Participant, by signing a Certificate of Acknowledgment attached hereto as Appendix B, specifically acknowledges this right and agrees to be bound by the terms of the Plan.

  

	 	G.	No Participant or third party acting on behalf of or through a Participant shall have any power or right to transfer, assign, anticipate, hypothecate, mortgage,
commute, modify or otherwise encumber in advance any amounts that may be payable hereunder, nor shall any of said amounts be subject to seizure for payment of debt, judgments, alimony or separate maintenance owed by a Participant, or be transferable
by operation of law in the event of a bankruptcy, or otherwise. 

  

	 	H.	This Plan is administered by, and all decisions regarding any payments hereunder shall be made from ModusLink Global Solutions, Inc. regardless of whether a Participant
is employed by ModusLink Global Solutions or one of its subsidiaries. 

  

	 	I.	If any term or condition of this Plan is found to be in non-conformance with a given state or federal or other law, that term or condition will be non-enforceable but
will not negate other terms and conditions of the Plan. 

  

	 	J.	The Plan shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts. Any legal actions arising out of or relating to this Plan
shall be brought exclusively in the state and federal courts located in Middlesex or Suffolk County, Massachusetts. 

  
  

Page 5. 

  
 Appendix A

 FY 2011 Executive Management Incentive Plan 

Participant Information Form 
 Participant Name:
                                         
                                         
                                         
                                      

Target Payout Percentage:
                                         
                    
 The Target Payout
is allocated as follows: 
  

			
	Revenue:	  	40%
		
	Operating Income:	  	40%
		
	Free Cash Flow:	  	20%

 The relevant Targets for Participant are as
follows: 
 Revenue 
  

			
	Threshold Level:	  	$                             
           
	Target Level:	  	$                             
           
	Maximum Level:	  	$                             
           

 Operating Income 

 

			
	Threshold Level:	  	$                             
           
	Target Level:	  	$                             
           
	Maximum Level:	  	$                             
           

 Free Cash Flow 

 

			
	Threshold Level:	  	$                             
           
	Target Level:	  	$                             
           
	Maximum Level:	  	$                             
           

  
  

Page 6. 

  
 Appendix B

 Certificate of Acknowledgement 
 I,
                                        ,
hereby certify that I have read the ModusLink Global Solutions, Inc. FY 2011 Executive Management Incentive Plan. I understand and agree with the terms of the Plan and agree to be bound thereby. 

 

									
	  
	 		 		  	  
	  	
	Participant Signature	 		 		  	Date	  	
					
	  
	 		 		  		  	
	Printed Name	 		 		  		  	
					
	  
	 		 		  		  	
	Witness Signature	 		 		  		  	
				
	  
	 		  		  	
	Printed Name	 		 		  		  	

  
  

Page 7.

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