Document:

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                                                                Exhibit 10.3

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                                  SUNOCO, INC.
                    EXECUTIVE LONG-TERM STOCK INVESTMENT PLAN

                 (Amended and Restated as of September 6, 2001)

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                                    ARTICLE I
                                   Definitions

      As used in this Plan, the following terms shall have the meanings herein
specified:

      1.1 Affiliate - shall mean any person or entity which directly, or
indirectly through one or more intermediaries, controls, is controlled by, or is
under common control with Sunoco, Inc.

      1.2 Alternate Appreciation Rights - shall have the meaning provided herein
at Section 6.1.

      1.3 Board of Directors - shall mean the Board of Directors of Sunoco, Inc.

      1.4 Business Combination - shall have the meaning provided herein at
Section 1.5(c).

      1.5 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 20% or more of either (1) the then-outstanding shares of common
stock of the Company (the "Outstanding Company Common Stock") or (2) the
combined voting power of the then-outstanding voting securities of the Company
entitled to vote generally in the election of directors (the "Outstanding
Company Voting Securities"); provided, however, that, for purposes of this
Section (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 Sections (c)(1), (c)(2) and (c)(3)
of this definition;

            (b) Individuals who, as of September 6, 2001, 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 Company's shareholders, 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 (each, a "Business
Combination"), in each case unless, following such Business Combination, (1) 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 60% 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

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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 Company's assets 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, (2) 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) 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 (3) 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 providing for such Business
Combination; or

            (d) Approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company.

      1.6   Code - shall mean the Internal Revenue Code of 1986, as amended.

      1.7   Committee - shall mean the committee appointed to administer this
Plan by the Board of Directors of the Company, as constituted from time to time.
The Committee shall consist of at least two (2) 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, and Section 162(m)
of the Code.

      1.8   Common Stock - shall mean the authorized and unissued or treasury
shares of common stock of Sunoco, Inc.

      1.9   Common Stock Units - shall have the meaning provided herein at
Section 8.1.

      1.10  Company - shall mean Sunoco, Inc., a Pennsylvania corporation. The
term "Company" shall include any successor to Sunoco, Inc., any Subsidiary or
Affiliate which has adopted the Plan, or a corporation succeeding to the
business of Sunoco, Inc., or any Subsidiary or Affiliate by merger,
consolidation, liquidation or purchase of assets or stock or similar
transaction.

      1.11  CSU Payout Date - shall have the meaning provided herein at Section
8.9.

      1.12  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.

      1.13  Dividend Equivalents - shall have the meaning provided herein at
Section 8.3.

      1.14  Dividend Equivalent Account - shall have the meaning provided herein
at Section 8.3.

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      1.15  Employment Termination Date - shall mean the date on which the
employment relationship between the Participant and the Company is terminated.

      1.16  Exchange Act - shall mean the Securities Exchange Act of 1934, as
amended.

      1.17  Exercise Period - shall have the meaning provided herein at Section
7.3.

      1.18  Fair Market Value - shall mean, as of any date and in respect of any
share of Common Stock, the opening price on such date of a share of Common Stock
(which price shall be the closing price on the previous trading day of a share
of Common Stock as published in the Wall Street Journal under the caption "New
York Stock Exchange Composite Transactions" or any other publication selected by
the Committee). If there is no sale of shares of Common Stock on the New York
Stock Exchange for more than ten (10) days immediately preceding such date, or
if deemed appropriate by the Committee for any other reason, the fair market
value of the shares of Common Stock shall be as determined by the Committee in
such other manner as it may deem appropriate. In no event shall the fair market
value of any share of Common Stock be less than its par value.

      1.19  Incentive Stock Options - shall have the meaning provided herein at
Article IV.

      1.20  Incumbent Board - shall have the meaning provided herein at Section
1.5(b).

      1.21  Just Cause - shall mean, for any Participant who is a participant in
the Company's Special Executive Severance Plan, "Just Cause" as defined in such
plan, and for any other Participant:

      (a) the willful and continued failure of the Participant to perform
substantially 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 1.34),
after a written demand for substantial performance is delivered to the
Participant by the Board of Directors or any employee of the Company with
supervisory authority over the Participant that specifically identifies the
manner in which the Board of Directors or such supervising employee 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.

      1.22 Limited Rights - shall have the meaning provided herein at Article
VII.

      1.23 Market Price - shall have the meaning provided herein at Section 7.4.

      1.24 Option - shall mean Stock Option, Incentive Stock Option and/or
Reload Option.

      1.25 Option Price - shall mean the purchase price per share of Common
Stock deliverable upon the exercise of an Option.

      1.26 Optionee - shall mean the holder of an Option.

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      1.27 Outstanding Company Common Stock - shall have the meaning provided
herein at Section 1.5(a).

      1.28 Outstanding Company Voting Securities - shall have the meaning
provided herein at Section 1.5(a).

      1.29 Participant - shall have the meaning provided herein at Section
2.4(a).

      1.30 Performance Factors - shall mean the various payout percentages
related to the attainment levels of one or more Performance Goals, as determined
by the Committee.

      1.31 Performance Goals - shall mean the specific targeted amounts of, or
changes in, financial or operating goals including: revenues; expenses; net
income; operating income; equity; return on equity, assets or capital employed;
working capital; shareholder return; operating capacity utilized; production or
sales volumes; or throughput. Other financial or operating goals may also be
used as determined by the Committee. Such goals may be applicable to the Company
as a whole or one or more of its business units and may be applied in total or
on a per share, per barrel or percentage basis and on an absolute basis or
relative to other companies, industries or indices or any combination thereof,
as determined by the Committee.

      1.32 Performance Period - shall have the meaning provided herein at
Section 8.4.

      1.33 Person - shall have the meaning provided herein at Section 1.5(a).

      1.34 Qualifying Termination - shall mean, with respect to the employment
of any Participant who is a participant in the Company's Special 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 seven (7) months
   after a Change in Control, other than for Just Cause, death or Disability;

      (b) a termination of employment by the Participant within seven (7) months
   after a Change in Control for one or more of the following reasons:

            (1) 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
        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; or

            (2) 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

            (3) 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

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        obligations during the period of twelve (12) consecutive months
        immediately preceding the Change in Control;

   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 the termination occurs within
   120 days after the occurrence of the event or events constituting the reason
   for the termination; or

       (c) before a Change in Control, a termination of employment by the
   Company, other than a termination for Just Cause, or a termination of
   employment by the Participant for one of the reasons set forth in (b) above,
   if the affected Participant can demonstrate that such termination or
   circumstance in (b) above leading to the termination:

             (1) was at the request of a third party with which the Company had
      entered into negotiations or an agreement with regard to a Change in
      Control; or

             (2) otherwise occurred in connection with a Change in Control;

   provided, however, that in either such case, a Change in Control actually
   occurs within one (1) year following the Employment Termination Date.

      1.35 Reload Options - shall have the meaning provided herein at Section
5.1.

      1.36 Stock Options - shall have the meaning provided herein at Section
3.1.

      1.37 Subsidiary - shall mean any corporation of which, at the time more
than fifty percent (50%) of the shares entitled to vote generally in an election
of directors are owned directly or indirectly by Sunoco, Inc. or any subsidiary
thereof.

                                   ARTICLE II
 Background, Purpose and Term of Plan; Participation & Eligibility for Benefits

      2.1 Background. Effective on December 31, 1991, no further awards shall be
made under the Sunoco, Inc. Long-Term Incentive Plan adopted in June, 1986;
provided, however, that any rights theretofore granted under that plan shall not
be affected.

      2.2 Purpose of the Plan. The purposes of this Sunoco, Inc. Executive
Long-Term Stock Investment Plan (the "Plan") are to:

            (a) better align the interests of shareholders and management of the
      Company by creating a direct linkage between Participants' rewards and
      shareholders' gains;

            (b) provide management with an equity ownership in Sunoco, Inc.
      commensurate with Company performance, as reflected in increased
      shareholder value;

            (c) maintain competitive compensation levels; and

            (d) provide an incentive to management for continuous employment
      with the Company.

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      It is intended that most awards made under the Plan will qualify as
performance-based compensation under Section 162(m) of the Code.

      2.3 Term of the Plan. This Plan became effective upon approval by the
holders of a majority of the votes present, in person or represented by proxy,
at the 1991 Annual Meeting of Shareholders of the Company. No awards will be
made under the Plan after December 31, 1996. 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.

      2.4 Administration. The Plan shall be administered by the Committee which
shall have the authority, in its sole discretion and from time to time to:

            (a) designate the employees or classes of employees eligible to
      participate in the Plan (each such employee being, a "Participant");

            (b) grant awards provided in the Plan in such form and amount as the
      Committee shall determine;

            (c) impose such limitations, restrictions and conditions upon any
      such award 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.

      2.5   Eligibility for Participation. Participants in the Plan shall be the
officers and other key employees of the Company who occupy responsible
managerial or professional positions and who have the capability of making a
substantial contribution to the success of the Company. In making this selection
and in determining the amount of awards, the Committee shall consider any
factors deemed relevant, including the individual's functions, responsibilities,
value of services to the Company and past and potential contributions to its
profitability and sound growth.

      2.6   Types of Awards Under the Plan. Awards under the Plan may be in the
form of any one or more of the following:

            (a) Stock Options, as described in Article III;

            (b) Incentive Stock Options, as described in Article IV;

            (c) Reload Options, as described in Article V;

            (d) Alternate Appreciation Rights, as described in Article VI;

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            (e) Limited Rights, as described in Article VII; and/or

            (f) Common Stock Units, as described in Article VIII.

      2.7   Aggregate Limitation on Awards. Shares of stock which may be issued
under the Plan shall be Common Stock. The maximum number of shares of Common
Stock which may be issued under the Plan shall be 5.8 million. For purposes of
calculating the maximum number of shares of Common Stock which may be issued
under the Plan:

            (a) all the shares issued (including the shares, if any, withheld
      for tax withholding requirements) shall be counted when cash is used as
      full payment for shares issued upon exercise of an Option;

            (b) only the shares issued (including the shares, if any, withheld
      for tax withholding requirements) as a result of an exercise of Alternate
      Appreciation Rights shall be counted;

            (c) only the shares issued (including the shares, if any, withheld
      for tax withholding requirements) net of shares of Common Stock used as
      full or partial payment for such shares upon exercise of an Option; and

            (d) only the shares issued (including the shares, if any, withheld
      for tax withholding) upon vesting and payment of the Common Stock Units,
      shall be counted.

      In addition to shares of Common Stock actually issued pursuant to the
exercise of Options, there shall be deemed to have been issued a number of
shares equal to the number of shares of Common Stock in respect of which Limited
Rights (as described in Article VII) shall have been exercised. Shares tendered
by a Participant as payment for shares issued upon exercise of an Option, shall
be available for issuance under the Plan. Any shares of Common Stock subject to
an Option, which for any reason is terminated unexercised or expires shall again
be available for issuance under the Plan, but shares subject to an Option which
are not issued as a result of the exercise of Limited Rights shall not be
available for issuance under the Plan.

                                   ARTICLE III
                                  Stock Options

      3.1 Award of Stock 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 in the Plan one or more
options to purchase for cash or shares the number of shares of Common Stock
("Stock Options") allotted by the Committee. The date a Stock Option is granted
shall mean the date selected by the Committee as of which the Committee allots a
specific number of options to a Participant pursuant to the Plan.

      3.2 Stock Option Agreements. The grant of a Stock Option shall be
evidenced by a written Stock Option Agreement, executed by the Company and the
holder of a Stock Option, stating the number of shares of Common Stock subject
to the Stock Option evidenced thereby, and in such form as the Committee may
from time to time determine.

      3.3 Stock Option Price. The Option Price per share of Common Stock
deliverable upon the exercise of a Stock Option shall be not less than 100% of
the Fair Market Value of a share of Common Stock on the date the Stock Option is
granted.

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      3.4 Term and Exercise. Except as otherwise provided in Section 3.10, each
Stock Option shall be fully exercisable six (6) months from the date of its
grant or such longer period as the Committee shall determine in its discretion
and, unless a shorter period is provided by the Committee or by another Section
of this Plan, may be exercised during a period of ten (10) years from the date
of grant thereof. No Stock Option shall be exercisable after the tenth
anniversary of the date of its grant.

      3.5 Manner of Payment. Each Stock Option Agreement shall set forth the
procedure governing the exercise of the Stock Option granted thereunder, and
shall provide that, upon such exercise in respect of any shares of Common Stock
subject thereto, the Optionee shall pay to the Company, in full, the Option
Price for such shares with cash or with Common Stock. All shares of Common Stock
issued under the Sunoco, Inc. Long-Term Incentive Plan, this Plan, or any
similar executive stock option plan must be held at least six (6) months before
they may be used as payment of the Option Price.

      3.6 Issuance and Delivery of Shares. As soon as practicable after receipt
of payment, the Company shall deliver to the Optionee a certificate or
certificates for such shares of Common Stock. The Optionee shall become a
shareholder of the Company with respect to Common Stock represented by share
certificates so issued and as such shall be fully entitled to receive dividends,
to vote and to exercise all other rights of a shareholder.

      3.7 Retirement or Disability. Upon termination of the Optionee's
employment by reason of Disability or retirement (as determined by the
Committee), the Optionee may, within sixty (60) months from the date of
termination, exercise any Stock Options to the extent such options are
exercisable during such 60-month period.

      3.8 Termination for Other Reasons. Except as provided in Sections 3.7 and
3.9, or except as otherwise determined by the Committee, upon termination of an
Optionee's employment, all Stock Options shall terminate:

            (a) immediately, in the case of an Optionee terminated by the
      Company for Just Cause; or

            (b) upon the expiration of ninety (90) calendar days following the
      date of termination of an Optionee's employment other than for Just Cause;

provided, however, that the Limited Rights awarded in tandem with such Stock
Options shall not terminate and such Limited Rights shall remain exercisable
during the Exercise Period for any Optionee whose employment relationship with
the Company has been terminated as a result of any Qualifying Termination.

      3.9 Death of Optionee. Any rights in respect of Stock Options to the
extent exercisable on the date of the Optionee's death may be exercised by the
Optionee's estate or by any person that acquires the legal right to exercise
such Stock Option by bequest, inheritance, or otherwise by reason of the death
of the Optionee. Any such exercise to be valid must occur within the remaining
option term of the Stock Option. The foregoing provisions of this Section 3.9
shall apply to an Optionee who dies while employed by the Company and to an
Optionee whose employment may have terminated prior to death; provided, however,
that:

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            (a) an Optionee who dies while employed by the Company will be
      treated as if the Optionee had retired on the date of death. Accordingly,
      the Optionee's estate or a person who acquires the right to exercise such
      Stock Option by bequest or inheritance will have the right to exercise the
      Stock Option in accordance with Section 3.7; or

            (b) the estate or a person who acquires the right to exercise a
      Stock Option by bequest or inheritance from an Optionee who dies after
      terminating employment with the Company will have the remainder of any
      exercise period provided under Sections 3.7 and 3.8.

      3.10 Acceleration of Options. Notwithstanding any provisions to the
contrary in agreements evidencing Options granted thereunder, each outstanding
Option shall become immediately and fully exercisable upon the occurrence of any
Change in Control.

      3.11 Effect of Exercise. The exercise of any Stock Options shall cancel
that number of related Limited Rights, if any, which is equal to the number of
shares of Common Stock purchased pursuant to said options.

                                   ARTICLE IV
                             Incentive Stock Options

      4.1 Award of Incentive Stock 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, grant to any Participant in the Plan one or more
incentive stock options ("Incentive Stock Options") (intended to qualify as such
under the provisions of Section 422 of the Internal Revenue Code of 1986, as
amended (the "Code")) to purchase for cash or shares the number of shares of
Common Stock allotted by the Committee. The date an Incentive Stock Option is
granted shall mean the date selected by the Committee as of which the Committee
allots a specific number of options to a Participant pursuant to the Plan.
Notwithstanding the foregoing, Incentive Stock Options shall not be granted to
any owner of ten percent (10%) or more of the total combined voting power of the
Company and its subsidiaries.

      4.2 Incentive Stock Option Agreements. The grant of an Incentive Stock
Option shall be evidenced by a written Incentive Stock Option Agreement,
executed by the Company and the holder of an Incentive Stock Option stating the
number of shares of Common Stock subject to the Incentive Stock Option evidenced
thereby, and in such form as the Committee may from time to time determine.

      4.3 Incentive Stock Option Price. The Option Price per share of Common
Stock deliverable upon the exercise of an Incentive Stock Option shall not be
less than 100% of the Fair Market Value of a share of Common Stock on the date
the Incentive Stock Option is granted.

      4.4 Term and Exercise. Each Incentive Stock Option shall be fully
exercisable six (6) months from the date of its grant and unless a shorter
period is provided by the Committee or another Section of this Plan, may be
exercised during a period of ten (10) years from the date of grant thereof. No
Incentive Stock Option shall be exercisable after the tenth anniversary of the
date of its grant.

      4.5 Limits on Incentive Stock Options. Each Incentive Stock Option shall
provide that, if the aggregate Fair Market Value of the stock on the date of
grant with respect to which Incentive

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Stock Options are exercisable for the first time by an Optionee during any
calendar year, under this Plan or any other stock option plan of the Company
exceeds One Hundred Thousand Dollars ($100,000.00), then the option, as to the
excess shall be treated as a non-qualified stock option. An Incentive Stock
Option shall not be granted to any person who is not an "employee" of the
Company (within the meaning of Section 424(f) of the Code).

      4.6   Retirement or Disability. Upon the termination of the Optionee's
employment by reason of Disability or retirement (as determined by the
Committee), the Optionee may, within sixty (60) months from the date of such
termination of employment, exercise any Incentive Stock Options to the extent
such Incentive Stock Options are exercisable during such 60-month period.
Notwithstanding the foregoing, the tax treatment available pursuant to Section
422 of the Internal Revenue Code of 1986 upon the exercise of an Incentive Stock
Option will not be available to an Optionee who exercises any Incentive Stock
Option more than:

            (a) twelve (12) months after the date of termination of employment
      due to Disability; or

            (b) three (3) months after the date of termination of employment due
      to retirement.

      4.7   Termination for Other Reasons. Except as provided in Sections 4.6
and 4.8, or except as otherwise determined by the Committee, upon termination of
an Optionee's employment, all Incentive Stock Options shall terminate:

            (a) immediately, in the case of an Optionee terminated by the
      Company for Just Cause; and

            (b) upon the expiration of ninety (90) calendar days following the
      date of termination of an Optionee's employment other than for Just Cause;

provided, however, that the Limited Rights awarded in tandem with such Stock
Options shall not terminate and such Limited Rights shall remain exercisable
during the Exercise Period for any Optionee whose employment relationship with
the Company has been terminated as a result of any Qualifying Termination.

      4.8   Death of Optionee. Any rights in respect of Incentive Stock Options
to the extent exercisable on the date of the Optionee's death may be exercised
by the Optionee's estate or by any person that acquires the legal right to
exercise such Stock Option by bequest, inheritance, or otherwise by reason of
the death of the Optionee. Any such exercise to be valid must occur within the
remaining option term of the Incentive Stock Option. The foregoing provisions of
this Section 4.8 shall apply to an Optionee who dies while employed by the
Company and to an Optionee whose employment may have terminated prior to death;
provided, however, that:

            (a) an Optionee who dies while employed by the Company will be
      treated as if the Optionee had retired on the date of death. Accordingly,
      the Optionee's estate or a person who acquires the right to exercise such
      Incentive Stock Option by bequest or inheritance will have the right to
      exercise the Incentive Stock Option in accordance with Section 4.6; or

            (b) the estate or a person who acquires the right to exercise a
      Stock Option by bequest or inheritance from an Optionee who dies after
      terminating employment with the

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      Company will have the remainder of any exercise period provided under
      Section 4.6 and 4.7.

      4.9   Applicability of Stock Options Selections. The following Sections of
this Plan that apply to Stock Options shall apply equally to Incentive Stock
Options:

            (a) Section 3.5 (Manner of Payment);

            (b) Section 3.6 (Issuance and Delivery of Shares);

            (c) Section 3.10 (Acceleration of Options); and

            (d) Section 3.11 (Effect of Exercise).

      Said Sections are incorporated by reference in this Article IV as though
fully set forth herein.

                                    ARTICLE V
                                 Reload Options

      5.1   Authorization of Reload Options. Concurrently with the award of
Stock Options and/or the award of Incentive Stock Options to any Participant in
the Plan, the Committee may authorize reload options ("Reload Options") to
purchase for cash or shares a number of shares of Common Stock. The number of
Reload Options shall equal:

            (a) the number of shares of Common Stock used to exercise the
      underlying Stock Options or Incentive Stock Options; and

            (b) to the extent authorized by the Committee, the number of shares
      of Common Stock used to satisfy any tax withholding requirement incident
      to the exercise of the underlying Stock Options or Incentive Stock
      Options.

      The grant of a Reload Option will be effected upon the exercise of
underlying Stock Options, Incentive Stock Options or Reload Options through the
use of shares of Common Stock held by the Optionee for at least twelve (12)
months. Notwithstanding the fact that the underlying Option may be an Incentive
Stock Option, a Reload Option is not intended to qualify as an "incentive stock
option" under Section 422 of the Internal Revenue Code of 1986.

      5.2   Reload Option Amendment. Each Stock Option Agreement and Incentive
Stock Option Agreement shall state whether the Committee has authorized Reload
Options with respect to the underlying Stock Options and/or Incentive Stock
Options. Upon the exercise of an underlying Stock Option, Incentive Stock Option
or other Reload Option, the Reload Option will be evidenced by an amendment to
the underlying Stock Option Agreement or Incentive Stock Option Agreement.

      5.3   Reload Option Price. The Option Price per share of Common Stock
deliverable upon the exercise of a Reload Option shall be the Fair Market Value
of a share of Common Stock on the date of grant of the Reload Option.

                                       11
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      5.4   Term and Exercise. Each Reload Option is fully exercisable six (6)
months from the effective date of grant. The term of each Reload Option shall be
equal to the remaining option term of the underlying Stock Option and/or
Incentive Stock Option. No additional Reload Options may be authorized in
connection with the award of Stock Options or Incentive Stock Options on or
after October 1, 1996.

      5.5   Termination of Employment. No additional Reload Options shall be
granted to an Optionee when Stock Options, Incentive Stock Options and/or Reload
Options are exercised pursuant to the terms of this Plan following termination
of such Optionee's employment.

      5.6   Applicability of Stock Options Sections. The following Sections of
this Plan that apply to Stock Options shall apply equally to Reload Options :

            (a) Section 3.5 (Manner of Payment);

            (b) Section 3.6 (Issuance and Delivery of Shares);

            (c) Section 3.7 (Retirement or Disability);

            (d) Section 3.8 (Termination for Other Reasons);

            (e) Section 3.9 (Death of Optionee); and

            (f) Section 3.11 (Effect of Exercise).

      Said Sections are incorporated by reference in this Article V as though
fully set forth herein.

                                   ARTICLE VI
                          Alternate Appreciation Rights

      6.1   Award of Alternate Appreciation Rights. Concurrently with or
subsequent to the award of any Stock Option, Incentive Stock Option or Reload
Option to purchase one or more shares of Common Stock, the Committee may,
subject to the provisions of the Plan and such other terms and conditions as the
Committee may prescribe, award to the Optionee with respect to each share of
Common Stock, a related stock appreciation right ("Alternate Appreciation
Right"), permitting the Optionee to be paid the appreciation on the Option in
lieu of exercising the Option.

      6.2   Alternate Appreciation Rights Agreement. Alternate Appreciation
Rights shall be evidenced by written agreements in such form as the Committee
may from time to time determine.

      6.3   Exercise. An Optionee who has been granted Alternate Appreciation
Rights may, from time to time, in lieu of the exercise of an equal number of
Options, elect to exercise one or more Alternate Appreciation Rights and thereby
become entitled to receive from the Company payment in Common Stock the number
of shares determined pursuant to Sections 6.4 and 6.5 hereof. Alternate
Appreciation Rights shall be exercisable only to the same extent and subject to
the same conditions as the Options related thereto are exercisable, as provided
in this Plan. The Committee may, in its discretion, prescribe additional
conditions to the exercise of any Alternate Appreciation Rights.

                                       12
<PAGE>

      6.4   Amount of Payment. The amount of payment to which an Optionee shall
be entitled upon the exercise of each Alternate Appreciation Right shall be
equal to 100% of the amount, if any, by which the Fair Market Value of a share
of Common Stock on the exercise date exceeds the Fair Market Value of a share of
Common Stock on the date the Option related to said Alternate Appreciation Right
was granted.

      6.5   Form of Payment. The number of shares to be paid shall be determined
by dividing the amount of payment determined pursuant to Section 6.4 by the Fair
Market Value of a share of Common Stock on the exercise date of such Alternate
Appreciation Rights. As soon as practicable after exercise, the Company shall
deliver to the Optionee a certificate or certificates for such shares of Common
Stock. All such shares shall be issued with the rights and restrictions
specified in Section 3.6 of this Plan.

      6.6   Effect of Exercise. The exercise of any Alternate Appreciation
Rights shall cancel an equal number of Stock Options, Incentive Stock Options,
Reload Options and Limited Rights, if any, related to said Alternate
Appreciation Rights.

      6.7   Retirement or Disability. Upon termination of the Optionee's
employment by reason of Disability or retirement (as determined by the
Committee), the Optionee may, within six (6) months from the date of such
termination, exercise any Alternate Appreciation Rights to the extent such
Alternate Appreciation Rights are exercisable during such six-month period.

      6.8   Death of Optionee or Termination for Other Reasons. Except as
provided in Section 6.7, or except as otherwise determined by the Committee, all
Alternate Appreciation Rights shall terminate upon the termination of the
Optionee's employment or upon the death of the Optionee.

                                   ARTICLE VII
                                 Limited Rights

      7.1   Award of Limited Rights. Concurrently with or subsequent to the
award of any Option, the Committee may, subject to the provisions of the Plan
and such other terms and conditions as the Committee may prescribe, award to the
Optionee with respect to each Option, a related limited right permitting the
Optionee, during a specified limited time period, to be paid the appreciation on
the Option in lieu of exercising the Option ("Limited Right").

      7.2   Limited Rights Agreement. Limited Rights granted under the Plan
shall be evidenced by written agreements in such form as the Committee may from
time to time determine.

      7.3   Exercise Period. Limited Rights are immediately exercisable in full
upon grant for a period of up to seven (7) months following the date of a Change
in Control (the "Exercise Period").

      7.4   Amount of Payment. The amount of payment to which an Optionee shall
be entitled upon the exercise of each Limited Right shall be equal to 100% of
the amount, if any, which is equal to the difference between the Option Price of
the related Option and the Market Price of a share of such Common Stock. "Market
Price" is defined to be the greater of:

      (a)   the highest price per share of Common Stock paid in connection with
any Change in Control during the period from the sixtieth (60th) calendar day
immediately prior to the Change in Control through the ninetieth (90th) calendar
day following the Change in Control; and

                                       13
<PAGE>

      (b)   the highest trading price per share of Common Stock reflected in the
consolidated trading tables of The Wall Street Journal (presently the New York
Stock Exchange Composite Transactions quotations) during the 60-day period
immediately prior to the Change in Control.

      7.5   Form of Payment. Payment of the amount to which an Optionee is
entitled upon the exercise of Limited Rights, as determined pursuant to Section
7.4, shall be made solely in cash.

      7.6   Effect of Exercise. If Limited Rights are exercised, the Options and
Alternate Appreciation Rights, if any, related to such Limited Rights cease to
be exercisable to the extent of the number of shares with respect to which the
Limited Rights were exercised. Upon the exercise or termination of the Options
and Alternate Appreciation Rights, if any, related to such Limited Rights, the
Limited Rights granted with respect thereto terminate to the extent of the
number of shares as to which the related Options and/or Alternate Appreciation
Rights were exercised or terminated; provided, however, that with respect to
Options and/or Alternate Appreciation Rights that are terminated as a result of
the termination of the Optionee's employment status, the Limited Rights awarded
in tandem therewith shall not terminate and such Limited Rights shall remain
exercisable during the Exercise Period for any Optionee whose employment
relationship with the Company has been terminated as a result of any Qualifying
Termination.

      7.7   Retirement or Disability. Upon termination of the Optionee's
employment by reason of Disability or retirement (as determined by the
Committee), the Optionee may, within six (6) months from the date of
termination, exercise any Limited Rights to the extent such Limited Right is
exercisable during such six-month period.

      7.8   Death of Optionee or Termination for Other Reasons. Except as
provided in Sections 7.7 and 7.9 or except as otherwise determined by the
Committee, all Limited Rights granted under the Plan shall terminate upon the
termination of the Optionee's employment or upon the death of the Optionee.

      7.9   Termination Related to a Change in Control. The requirement that an
Optionee be terminated by reason of retirement or Disability or be employed by
the Company at the time of exercise pursuant to Sections 7.7 and 7.8
respectively, is waived during the Exercise Period as to any Optionee whose
employment relationship with the Company has been terminated as a result of any
Qualifying Termination.

                                  ARTICLE VIII
                               Common Stock Units

      8.1   Award of Common Stock Units. The Committee, from time to time, and
subject to the provisions of the Plan, may grant to any Participant in the Plan
rights to receive shares of Common Stock which are subject to a risk of
forfeiture by the Participant ("Common Stock Units"). At the time it grants any
Common Stock Units, the Committee shall determine whether the payment of such
Common Stock Units shall be conditioned upon either:

            (a) the Participant's continued employment with the Company
      throughout a stated period (Section 8.4); or

                                       14
<PAGE>

            (b) the attainment of certain predetermined performance objectives
      during a stated period (Section 8.5).

      The date Common Stock Units are granted shall mean the date selected by
the Committee as of which the Committee allots a specific number of Common Stock
Units to a Participant pursuant to the Plan.

       8.2  Common Stock Unit Agreements. Common Stock Units granted under the
Plan shall be evidenced by written agreements stating the number of Common Stock
Units evidenced thereby or in such form and as the Committee may from time to
time determine.

      8.3   Dividend Equivalents. A holder of Common Stock Units will be
entitled to receive payment from the Company in an amount equal to each cash
dividend ("Dividend Equivalent") 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 Common Stock Units which had
been awarded to such holder as of the close of business on such record date. The
Company shall establish a bookkeeping account on behalf of each Participant in
which the Dividend Equivalents that would have been paid to the holder of Common
Stock Units ("Dividend Equivalent Account") shall be credited. The Dividend
Equivalent Account will not bear interest.

      8.4   Performance Period. Upon making an award, the Committee shall
determine (and the Common Stock Unit Agreement shall state) the length of the
applicable period during which employment must be maintained or certain
performance targets must be attained (the "Performance Period"). Performance
Periods will normally be from three to five years; provided, however, the
Committee at its sole discretion may establish other time periods.

      8.5   Performance Goals. Common Stock Units and the related Dividend
Equivalent Account earned may be based upon the attainment of Performance Goals
established by the Committee in accordance with Section 162(m). Within the first
ninety (90) days of the Performance Period, the Committee shall establish, in
writing, the weighted Performance Goals and related Performance Factors for
various goal achievement levels for the Company. In establishing the weighted
Performance Goals, the Committee shall take the necessary steps to insure that
the Company's ability to achieve the pre-established goals is uncertain at the
time the goals are set. The established written Performance Goals, assigned
weights, and Performance Factors shall be written in terms of an objective
formula, whereby any third party having knowledge of the relevant Company
performance results could calculate the amount to be paid. Such Performance
Goals may vary by Participant and by grant.

      The number of Common Stock Units and Dividend Equivalents earned will be
equal to the amounts awarded multiplied by the Performance Factor. However, the
Committee shall have the discretion, by Participant and by grant, to reduce (but
not to increase) some or all of the amount that would otherwise be payable by
reason of the satisfaction of the Performance Goals. In making any such
determination, the Committee is authorized to take into account any such factor
or factors it determines are appropriate, including but not limited to Company,
business unit and individual performance.

      8.6   Payment of Common Stock Units and Dividend Equivalent Account.
Payment in respect of Common Stock Units earned (as determined under Sections
8.4 and 8.5) shall be made to the holder thereof within ninety (90) days after
the Performance Period for such units has ended,

                                       15
<PAGE>

but only to the extent the Committee determines that the continuing employment
and/or any applicable performance targets have been met.

      Payment for Common Stock Units earned shall be made in shares of Common
Stock, except as provided in Section 8.9. The number of shares paid shall be
equal to the number of Common Stock Units earned. The holder may elect to reduce
this amount by the number of shares of Common Stock which have, on the date the
Common Stock Units are paid, a fair market value equal to the applicable
federal, state and local withholding tax due on the receipt of Common Stock, in
lieu of making a cash payment equal to the amount of such withholding tax due. A
holder of Common Stock Units will be entitled to receive payment from the
Company at the end of the Performance Period an amount in cash equal to the
Dividend Equivalent Account earned (as determined under Sections 8.4 and 8.5) by
the holder minus applicable federal, state and local withholding tax due.

      8.7   Death, Disability or Retirement.

            (a)   Upon the termination of Participant's employment by reason of
      death, Disability or retirement (as determined by the Committee) prior to
      the end of the Performance Period:

                  (1) in the case of an award of Common Stock Units made
            pursuant to Section 8.1(a) hereof and conditioned upon the
            Participant's continued employment, the conditions to payout, if
            any, shall be determined by the Committee and shall be as set forth
            in the agreement granting the Common Stock Units.

                  (2) in the case of an award of Common Stock Units made
            pursuant to Section 8.1(b) hereof and conditioned upon the
            attainment of certain predetermined performance objectives, no
            portion of the Participant's Common Stock Unit and the Dividend
            Equivalent Account related to such award shall be forfeited, and the
            Common Stock Units, together with related Dividend Equivalents,
            shall be paid out as though such Participant continued in the
            employment of the Company through any applicable Performance Period,
            and as, if, and when the applicable Performance Goals have been met.

      8.8   Termination of Employment. Except as provided in Sections 8.7 and
8.9, or as determined by the Committee, 100% of all Common Stock Units of a
Participant under the Plan shall be forfeited and the Dividend Equivalent
Account shall be forfeited upon termination of the Participant's employment with
the Company prior to the end of the Performance Period, and in such event the
Participant shall not be entitled to receive any Common Stock or any payment of
the Dividend Equivalent Account regardless of the level of Performance Goals
achieved for the respective Performance Periods.

      8.9   Change in Control. The number of Common Stock Units earned by the
Participant shall be determined by multiplying:

            (a) the total number of all the Participant's granted and
      outstanding Common Stock Units; by

            (b) a percentage equal to:

                                       16
<PAGE>

                  (1) the number of full and partial calendar months which the
            Common Stock Units have been outstanding as of the date of the
            Change in Control; divided by

                  (2) the number of full and partial calendar months in the
applicable Performance Period.

In the event of a Change in Control the Common Stock Units earned by the
Participant shall be payable to the Participant in cash or stock, as determined
by the Committee prior to the Change in Control, as follows:

            (c) if the Participant is to receive stock, the Participant will
      receive shares of Common Stock equal in number to the total number of
      Common Stock Units granted to such Participant; or

            (d) if the Participant is to receive cash, the Participant will be
      paid an amount in cash equal to the number of Common Stock Units
      outstanding multiplied by the Market Price as defined in Section 7.4. Such
      amount will be reduced by the applicable federal, state and local
      withholding taxes due.

The cash or stock, as the case may be, shall be paid out to the Participant no
later than ninety (90) days following the date of occurrence of such Change in
Control (the "CSU Payout Date"), regardless of whether the applicable
Performance Period has expired or whether performance targets have been met.
There will be no adjustment for any Performance Factors described in Section
8.5.

      On or before the CSU Payout Date, the Participant will be paid an amount
in cash equal to the value of the amounts accrued in the Participant's Dividend
Equivalent Account immediately preceding the Change in Control. Payout of Common
Stock Units and the Dividend Equivalent Account shall be made to each
Participant:

            (e) who is employed by the Company on the CSU Payout Date; or

            (f) whose employment relationship with the Company is terminated:

                  (1) as a result of any Qualifying Termination prior to the CSU
            Payout Date; or

                  (2) as a result of death, Disability or retirement (as
            determined by the Committee), that has occurred prior to the CSU
            Payout Date.

      The Committee may establish, at the time of the grant of Common Stock
Units, other conditions which must be met for payout to occur. These conditions
shall be set forth in the Committee's resolution granting the Common Stock Units
and in the Agreement with the holder.

                                       17
<PAGE>

                                   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 or related thereto upon any securities exchange or
      under any state or Federal law; or

            (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 of Common Stock,

is necessary or desirable as a condition of, or in connection with, the granting
of such award or the issue or purchase of shares of Common Stock 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. Awards under the Plan shall not be assignable or
transferable by the recipient thereof, except by will or by the laws of descent
and distribution except as otherwise determined by the Committee. Accordingly,
during the life of the recipient, such award shall be exercisable only by such
person or by such person's guardian or legal representative, unless the
Committee determines otherwise.

      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 effect any right which
the Company may have to terminate the employment of such Participant.

      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 Shareholder. The recipient of any award under the Plan
shall have no rights as a shareholder with respect thereto unless and until
certificates for shares of Common Stock are issued on behalf of such recipient.

      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 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

                                       18
<PAGE>

            (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   Newly Eligible Employees. The Committee shall be entitled to make
such rules, regulations, determinations and awards as it deems appropriate in
respect of any employee who becomes eligible to participate in the Plan or any
portion thereof after the commencement of an award or incentive period.

      9.8   Adjustments. In any event of any change in the outstanding Common
Stock by reason of a stock dividend or distribution, recapitalization, merger,
consolidation, split-up, combination, exchange of shares or the like, the
Committee may appropriately adjust the number of shares of Common Stock which
may be issued under the Plan, the number of shares of Common Stock subject to
Options theretofore granted under the Plan, the Option Price of Options
theretofore granted under the Plan, the number of Common Stock Units theretofore
awarded under the Plan and any and all other matters deemed appropriate by the
Committee.

      9.9   Amendment of the Plan.

            (a) The Committee may, without further action by the shareholders
      and without receiving further consideration from the Participants, amend
      this Plan or condition or modify awards under this Plan in response to
      changes in securities or other laws or rules, regulations or regulatory
      interpretations thereof applicable to this Plan or to comply with stock
      exchange rules or requirements;

            (b) The Committee may at any time, and from time to time, modify or
      amend the Plan in any respect, except that without shareholder approval
      the Committee may not:

                  (1) increase the maximum number of shares of Common Stock
            which may be issued under the Plan (other than increases pursuant to
            Section 9.8);

                  (2) extend the term during which any award may be granted or
            exercised; or

                  (3) extend the term of the Plan.

      The termination or any modification or amendment of the Plan, except as
provided in Section 9.9(a) above, shall not without the consent of a
Participant, affect the Participant's rights under an award previously granted.

                                       19<PAGE>

                                                              Exhibit 10.4

     =====================================================================

                      DIRECTORS' DEFERRED COMPENSATION PLAN

                              Amended and Restated
                                      as of
                                September 6, 2001

    ========================================================================
<PAGE>

                                    ARTICLE I

                                   Definitions

      As used in this Plan, the following terms shall have the meanings herein
specified:

      1.1 95% Withdrawal - shall have the meaning provided herein at Section
7.1.

      1.2 Business Combination - shall have the meaning provided herein at
Section 1.4(c).

      1.3 Cash Unit - shall mean the entry in a Deferred Compensation Account of
a credit equal to One Dollar ($1.00).

      1.4 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 of 1934, as amended)
(a "Person") of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either (1) the
then-outstanding shares of common stock of the Company (the "Outstanding Company
Common Stock") or (2) the combined voting power of the then-outstanding voting
securities of the Company entitled to vote generally in the election of
directors (the "Outstanding Company Voting Securities"); provided, however,
that, for purposes of this Section (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 Sections
(c)(1), (c)(2) and (c)(3) of this definition;

            (b) Individuals who, as of September 6, 2001, 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 Company's shareholders, 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 (each, a "Business
Combination"), in each case unless, following such Business Combination, (1) 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 60% 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

                                       1
<PAGE>

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 Company's assets 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, (2) 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) 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 (3) 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 the Company of a complete
liquidation or dissolution of the Company.

      1.5 Change in Control Election - shall have the meaning provided herein at
Section 7.1

      1.6 Committee - shall mean the Governance Committee of the Board of
Directors of Sunoco, Inc.

      1.7 Company - shall mean Sunoco, Inc., a Pennsylvania corporation. The
term "Company" shall include any successor to Sunoco, Inc., any subsidiary or
affiliate which has adopted the Plan, or a corporation succeeding to the
business of Sunoco, Inc., or any subsidiary or affiliate by merger,
consolidation, liquidation or purchase of assets or stock or similar
transaction.

      1.8 Compensation - shall mean those fees and retainers payable by the
Company to a Participant in consideration for his or her service as a Director.

      1.9 Deferred Compensation Account - shall mean, with respect to any
Participant, the total amount of the Company's liability for payment of
voluntary deferred compensation to the Participant under this Plan, including
any accumulated interest and/or Dividend Equivalents.

      1.10 Deferred Payment Election Form - shall mean and refer to the written
election by a Participant, in the form prescribed by the Committee, to
voluntarily defer the payment of all or a portion of such Participant's
Compensation under this Plan pursuant to Article II hereof.

      1.11 Director - shall mean a member of the Board of Directors of Sunoco,
Inc.

      1.12 Dividend Equivalent - shall mean the entry in a Deferred Compensation
Account or a Restricted Deferred Compensation Account of a dividend credit with
respect to a Share Unit, each Dividend Equivalent being equal to the dividend
paid from time to time on a Share.

      1.13 Form of Continuing Deferral - shall mean and refer to the written
commitment by a Participant, in the form prescribed by the Committee, to
mandatorily defer the payment of all of the Yearly Credit awarded to such
Participant under this Plan pursuant to Article IV hereof.

      1.14 Incumbent Board - shall have the meaning provided herein at Section
1.4(b).

                                       2
<PAGE>

      1.15 Interest Equivalent - shall mean the entry in a Deferred Compensation
Account of an interest credit with respect to a Cash Unit, compounded on the
basis of the balance in the Participant's Deferred Compensation Account,
applying the interest factor approved by the Committee each year for such
purpose.

      1.16 Outstanding Company Common Stock - shall have the meaning provided
herein at Section 1.4(a).

      1.17 Outstanding Company Voting Securities - shall have the meaning
provided herein at Section 1.4(a).

      1.18 Participant - shall mean a Director who has elected to defer the
receipt of compensation or a Director who is required to defer the receipt of
the Restricted Share Units in accordance with the terms of this Plan.

      1.19 Person - shall have the meaning provided herein at Section 1.4(a).

      1.20 Plan - shall mean this Directors' Deferred Compensation Plan, as it
may be amended from time to time.

      1.21 Restricted Deferred Compensation Account - shall mean, with respect
to any Participant, the total amount of the Company's liability for payment of
Restricted Share Units to the Participant under this Plan.

      1.22 Restricted Share Unit - shall mean the entry in a Restricted Deferred
Compensation Account of a credit equal to one Share that will be restricted
until death, retirement or termination of Board service.

      1.23 Share - shall mean a share of the Company's authorized voting Common
Stock ($1.00 par value per share) and any share or shares of stock of the
Company hereafter issued or issuable in substitution or exchange for each such
share.

      1.24 Share Unit - shall mean the entry in a Deferred Compensation Account
of a credit equal to one Share.

                                   ARTICLE II

                  Voluntary Deferral of Directors' Compensation

      2.1 Election to Defer. Prior to the beginning of any calendar quarter, a
Participant may elect to defer all or a portion of the Compensation that would
otherwise be paid to the Participant in the next succeeding calendar quarter, by
filing a written notice of election with the Committee on the form(s) prescribed
by the Committee. Any such deferral election shall apply only to Compensation to
be earned on or after the first day of the calendar quarter following the
calendar quarter in which the election is received by the Committee. An election
to defer, made in accordance with this Article II shall be irrevocable. The
deferral election form(s) also will permit the Participant to specify:

                                       3
<PAGE>

            (a) the percentage of Compensation to be deferred;

            (b) the form of deferral, being either Cash Units, Share Units, or a
      combination of the two and the percentage allocations of such;

            (c) the selection of a method of payment as set forth in Article
      III; and

            (d) the designation of a beneficiary as set forth in Article V.

      Without any further action by Participant, the choices specified in the
Participant's Deferred Payment Election Form regarding the percentage of
Compensation deferred, the form of deferral, the designation of a beneficiary,
and the method of payment shall each continue and be applied from calendar
quarter to calendar quarter to amounts yet to be deferred. Until further express
written notification, on a form prescribed by the Committee, to the contrary,
these choices shall continue to be applied to amounts to be credited to such
Deferred Compensation Account balance prospectively.

      2.2 Subsequent Change in Method of Payment Election.

            (a) Change in Method of Payment Prior to Commencement of
      Distribution or Payment. With the approval of the Committee, and at any
      time not later than twelve (12) months prior to the commencement of any
      payment or distribution of the amounts credited to the Participant's
      Deferred Compensation Account, a Participant in this portion of the Plan
      may file a written request with regard to the method of payment (i.e., a
      series of installments versus lump-sum payout), on a form prescribed by
      the Committee, which will revoke all such earlier or prior elections with
      regard to the method of payment (i.e., a series of installments versus
      lump-sum payout), and such new choice as to method of payment will be
      applied both to amounts previously credited to the Participant's current
      Deferred Compensation Account balance, as well as to amounts to be
      credited to such Deferred Compensation Account balance prospectively. Any
      such new or subsequent election that is made less than twelve (12) months
      prior to the commencement of any payment or distribution of the amounts
      credited to the Participant's Deferred Compensation Account, will be null
      and void, and the Participant's most recent preceding timely election will
      be reinstated.

            (b) Change in Method of Payment Following Commencement of
      Distribution or Payment. After payment or distribution of amounts credited
      to the Participant's Deferred Compensation Account has commenced, the
      Participant may not change the period of time for which such amounts are
      payable. However the Participant may convert installment payments to a
      lump sum distribution subject to a penalty equal to a five percent (5%)
      reduction in the balance of the Participant's Deferred Compensation
      Account, which shall be forfeited to the Company.

      2.3 Amount of Deferral The amount of Compensation to be deferred shall be
designated by the Participant as a percentage of the Director's Compensation in
multiples of five percent (5%) but shall not be less than ten percent (10%).

      2.4 Time of Election Except as otherwise determined by the Committee in
its sole discretion, an election to defer must be filed and received by the
Committee by the end of the calendar

                                       4
<PAGE>

quarter preceding the calendar quarter in which the Compensation is to be
earned. A new Director may also elect to defer Compensation prior to the
commencement of his or her term in office.

                                   ARTICLE III

                    Voluntary Deferred Compensation Accounts

      3.1 Creation of Voluntary Deferred Compensation Accounts. Compensation
deferred hereunder shall be credited to a Deferred Compensation Account
established by the Company for each Participant. The Participant must elect to
convert the deferred compensation to either Cash Units or Share Units, which
shall be credited to a Participant's Deferred Compensation Account as set forth
in the Plan.

      3.2 Crediting Share Units. Share Units shall be credited to a
Participant's Deferred Compensation Account at the time the Compensation would
otherwise have been paid had no election to defer been made. The number of Share
Units to be credited to the Deferred Compensation Account shall be determined by
dividing the Compensation by the average closing price for Shares as published
in the Wall Street Journal under the caption "New York Stock Exchange Composite
Transactions" for the ten (10) day period prior to the day on which the
Compensation would otherwise have been paid. Any fractional Share Units shall
also be credited to a Participant's Deferred Compensation Account. The number of
Share Units in a Deferred Compensation Account shall be appropriately adjusted
by the Committee in the event of changes in the Company's outstanding common
stock by reason of a stock dividend or distribution, recapitalization, merger,
consolidation, split-up, combination, exchange of shares or the like, and such
adjustments shall be conclusive. Share Units shall not entitle any person to the
rights of a stockholder.

      3.3 Crediting Cash Units. Cash Units shall be credited to a Participant's
Deferred Compensation Account at the time Compensation would otherwise have been
paid had no election to defer been made.

      3.4 Crediting Dividend Equivalents. For Share Units, the Company shall
credit the Participant's Deferred Compensation Account with Dividend Equivalents
being equal to the dividends declared on the Company's Shares. The crediting
shall occur as of the date on which said dividends are paid. The number of Share
Units to be credited to the Deferred Compensation Account shall be calculated by
dividing the Dividend Equivalents by the average closing price for Shares as
published in the Wall Street Journal (under the caption "New York Stock Exchange
Composite Transactions") or any other publication selected by the Committee for
the period of ten (10) trading days prior to the day on which the dividends are
paid on the Company's Shares. Any fractional Share Units shall also be credited
to a Participant's Deferred Compensation Account.

      3.5 Crediting Interest Equivalents. For Cash Units credited to their
Deferred Compensation Accounts, the Company shall credit the Participant's
Deferred Compensation Account on a quarterly basis with an Interest Equivalent.

      3.6 Share Unit Conversion. Immediately upon termination of Board service,
and so prior to the commencement of any payout or distribution of any amounts
hereunder, a Participant may make a one-time election to convert to Cash Units
all or a portion of the balance of Share Units in such Participant's Deferred
Compensation Account. Any Share Units so converted to Cash Units as a result of
this one-time conversion election shall be valued at the average closing price
for Shares

                                       5
<PAGE>

as published in the Wall Street Journal (under the caption "New York Stock
Exchange Composite Transactions") or any other publication selected by the
Committee for the ten (10) day period immediately prior to such one-time
conversion election.

      3.7   Time of Payment.

            (a) Election of Benefit Commencement Date. Except as provided in
Section 2.2 hereinabove, and in Article VII hereof, all payments of a
Participant's Deferred Compensation Account shall be made at, or shall commence
on, the date selected by the Participant in accordance with the terms of this
Section 3.7. The date of payment or distribution must be irrevocably specified
by the Participant in his or her most recently filed written Deferred Payment
Election Form. If the Participant fails to designate a time of payment, payment
shall commence on the first day of the calendar year following termination of
Board membership. The Participant may elect to defer the receipt of his or her
Compensation to:

                  (1)   the first day of any calendar quarter, provided such
                        date is at least six (6) months after the end of the
                        calendar quarter in which the Compensation is earned; or

                  (2)   the first day of the calendar year following the date
                        of:

                        (i)   retirement as a Director;

                        (ii)  termination of Board membership; or

                        (iii) death. Upon the death of a Director or former
                              Director, prior to the final payment of all
                              amounts credited to his or her Deferred
                              Compensation Account, the balance of the Deferred
                              Compensation Account shall be paid in accordance
                              with Article V, commencing on the first day of the
                              calendar year following the year of death.

      Notwithstanding the foregoing provisions of this Section 3.7, and except
as provided in Article VII, in no event shall any payment or distribution be
made within six (6) months of the Compensation being earned or awarded. The
benefit commencement date may not be later than the third calendar year
following the attainment of mandatory retirement age for Directors.

            (b) Acceleration of Benefit Commencement Date Prior to Payment. At
any time prior to the commencement of any payment or distribution of a
Participant's Deferred Compensation Account, such Participant may request in
writing to accelerate the receipt of all or a specified portion of such deferred
Compensation amounts to the first day of any calendar quarter; provided,
however, that such date is at least six (6) months after the end of the quarter
in which the Compensation is earned. Any such acceleration will be subject to a
penalty equal to a five percent (5%) reduction in the balance of the
Participant's Deferred Compensation Account, which shall be forfeited to the
Company;

      3.8   Method of Payment. A Participant in this portion of the Plan shall
have the option of:

            (a) selecting a lump-sum payment;

                                       6
<PAGE>

            (b) selecting a series of approximately equivalent annual
      installments (adjusted as necessary to reflect Dividend Equivalents and/or
      Interest Equivalents accrued during the installment payout period) in such
      number of installments as the Participant shall specify (not exceeding
      twenty (20) installments); or

            (c) not selecting a method of payment at the time the Deferred
      Payment Election Form is prepared. If the Participant does not select a
      method of payment, he or she must, at least twelve (12) months prior to
      the time the deferral amount is scheduled to be paid, notify the Corporate
      Secretary as to the specific method of payment which will be either in a
      lump sum or in approximately equivalent annual installments, and such
      election shall be subject to the consent of the Committee. Failure to
      provide appropriate notification to the Corporate Secretary will result in
      a lump sum payment on the deferral payment date.

      Participant shall receive in cash all deferred compensation credited to
such Participant's Deferred Compensation Account. Share Units credited to the
Participant's Deferred Compensation Account shall be valued at the average
closing price for Shares as published in the Wall Street Journal (under the
caption "New York Stock Exchange Composite Transactions") or any other
publication selected by the Committee for the ten (10) day period prior to each
new calendar year.

                                   ARTICLE IV

                    Restricted Deferred Compensation Accounts

      4.1 Creation of Restricted Deferred Compensation Accounts. Compensation
deferred under this Article IV shall be credited to a Restricted Deferred
Compensation Account established by the Company for each Participant. The
Restricted Deferred Compensation Accounts will be initialized as of February 15,
1996 by transferring to the Plan the present value of the accrued benefits of
each Participant in the Non-Employee Directors' Retirement Plan. The present
value of these accrued benefits will then be converted into Restricted Share
Units. The number of Restricted Share Units to be credited to the Restricted
Deferred Compensation Account of each Participant will be determined by using
the average closing price for Shares as published in the Wall Street Journal
(under the caption "New York Stock Exchange Composite Transactions") or any
other publication selected by the Committee for the ten (10) business days prior
to February 15, 1996. Payout of these Restricted Share Units shall not commence
until death, retirement or the termination of Board service.

      4.2 Crediting Share Units. If the Committee elects to do so, each year in
conjunction with either the Participant's election or re-election to the Board,
a yearly dollar amount ("Yearly Credit") will be credited to a Participant's
Restricted Deferred Compensation Account in the form of Restricted Share Units.
The number of Restricted Share Units credited to a Participant's Restricted
Deferred Compensation Account shall be determined by dividing the Yearly Credit
by the average closing price for Shares as published in the Wall Street Journal
(under the caption "New York Stock Exchange Composite Transactions") or any
other publication selected by the Committee for the ten (10) day period prior to
the Company's annual meeting. Any fractional Restricted Share Units shall also
be credited to a Participant's Restricted Deferred Compensation Account. The
number of Restricted Share Units in a Restricted Deferred Compensation Account
shall be appropriately adjusted by the Committee in the event of changes in the
Company's outstanding common stock by reason of a stock dividend or
distribution, recapitalization, merger,

                                       7
<PAGE>

consolidation, split-up, combination, exchange of shares or the like, and such
adjustments shall be conclusive. Restricted Share Units shall not entitle any
person to the rights of a stockholder.

      4.3 Crediting Dividend Equivalents. The Company shall credit the
Participant's Restricted Deferred Compensation Account with Dividend Equivalents
being equal to the dividends declared on the Company's Shares. The crediting
shall occur as of the date on which said dividends are paid. The number of
Restricted Share Units to be credited to the Restricted Deferred Compensation
Account shall be calculated by dividing the Dividend Equivalents by the average
closing price for Shares as published in the Wall Street Journal (under the
caption "New York Stock Exchange Composite Transactions") or any other
publication selected by the Committee for the period of ten (10) trading days
prior to the day on which the dividends are paid on the Company's Shares. Any
fractional Restricted Share Units shall also be credited to a Participant's
Restricted Deferred Compensation Account.

      4.4 Restricted Share Unit Conversion. Immediately upon termination of
Board service, and so prior to the commencement of any payout or distribution of
any amounts hereunder, a Participant may make a one-time election to convert to
Cash Units all or a portion of the balance of Restricted Share Units in such
Participant's Restricted Deferred Compensation Account. Any Restricted Share
Units so converted to Cash Units as a result of this one-time conversion
election shall be valued at the average closing price for Shares as published in
the Wall Street Journal (under the caption "New York Stock Exchange Composite
Transactions") or any other publication selected by the Committee for the ten
(10) day period immediately prior to such one-time conversion election.

      4.5   Time of Payment.

            (a) Benefit Commencement Date for Restricted Deferred Compensation
Account. All payments of a Participant's Restricted Deferred Compensation
Account shall be made at, or shall commence on, the date selected by the
Participant in accordance with the terms of this Article IV. The date of payment
or distribution must be specified by the Director in his or her written Form of
Continuing Deferral unless such election is revoked. A Participant's revocation
must be submitted to the Corporate Secretary in writing. If the Participant
selects a new election with regard to the date of payment or distribution, such
election will apply only prospectively to any additional Restricted Share Units
to be credited to a Director's Restricted Deferred Compensation Account. If the
Participant fails to designate a time of payment, payment shall commence on the
first day of the calendar year following termination of Board service. The
Participant may elect to defer the receipt of his or her Compensation to the
first day of the year following the date of:

                  (a)   retirement as a Director;

                  (b)   termination of Board service; or

                  (c) death. Upon the death of a Director or former Director,
                  prior to the final payment of all amounts credited to his or
                  her Account, the balance of the Restricted Deferred
                  Compensation Account shall be paid in accordance with Article
                  V, commencing on the first day of the calendar year following
                  the year of death.

      Notwithstanding the foregoing provisions of this Section 4.5, in no event,
however, shall any payment or distribution be made within the six (6) months of
the Compensation being earned. The

                                       8
<PAGE>

benefit commencement date may not be later than the third calendar year
following the attainment of mandatory retirement age for Participants.

            (b) Acceleration of Benefit Commencement Date Prior to Payment. At
any time prior to the commencement of any payment or distribution of a
Participant's Restricted Deferred Compensation Account, such Participant may
request in writing to accelerate the receipt of all or a specified portion of
such Restricted Deferred Compensation Account amounts to the first day of any
calendar quarter; provided, however, that such date is at least six (6) months
after the end of the quarter in which the Compensation is earned. Any such
acceleration will be subject to a penalty equal to a five percent (5%) reduction
in the balance of the Participant's Restricted Deferred Compensation Account,
which shall be forfeited to the Company.

      4.6   Method of Payment. Participant shall have the option of:

            (a) selecting a lump sum payment;

            (b) selecting a series of approximately equivalent annual
            installments (adjusted as necessary to reflect Dividend Equivalents
            and/or Interest Equivalents accrued during the installment payout
            period) in such number of installments as the Participant shall
            specify (not exceeding twenty (20) installments); or

            (c) not selecting a method of payment at the time the Form for
            Continuing Deferral is prepared. If the Participant does not select
            a method of payment, he or she must, at least twelve months prior to
            the time the deferral amount is scheduled to be paid, notify the
            Corporate Secretary as to the specific method of payment which will
            be either in a lump sum or in approximately equivalent annual
            installments, and such election shall be subject to the consent of
            the Committee. Failure to provide appropriate notification to the
            Corporate Secretary will result in a lump sum payment on the
            deferral payment date.

                Share Units credited to the Participant's Restricted Deferred
            Compensation Account shall be valued at the average closing price
            for Shares as published in the Wall Street Journal (under the
            caption "New York Stock Exchange Composite Transactions") or any
            other publication selected by the Committee for the ten (10) day
            period prior to each new calendar year.

      4.7   Subsequent Change in Method of Payment Election.

            (a) Change in Method of Payment Prior to Commencement of
      Distribution or Payment. With the approval of the Committee, and at any
      time not later than twelve (12) months prior to the commencement of any
      payment or distribution of the amounts credited to the Participant's
      Restricted Deferred Compensation Account, a Participant in this portion of
      the Plan may file a written request with regard to the method of payment
      (i.e., a series of installments versus lump-sum payout), on a form
      prescribed by the Committee, which will revoke all such earlier or prior
      elections with regard to the method of payment (i.e., a series of
      installments versus lump-sum payout), and such new choice as to method of
      payment will be applied both to amounts previously credited to the
      Participant's current Restricted Deferred Compensation Account balance, as
      well as to amounts to be credited to such Restricted Deferred Compensation
      Account balance prospectively. Any such new or subsequent election that is
      made less than twelve (12) months prior to the commencement of any payment
      or distribution of the amounts credited to the Participant's

                                       9
<PAGE>

      Restricted Deferred Compensation Account, will be null and void, and the
      Participant's most recent preceding timely election will be reinstated.

            (b) Change in Method of Payment Following Commencement of
      Distribution or Payment. After payment or distribution of amounts credited
      to the Participant's Restricted Deferred Compensation Account has
      commenced, the Participant may not change the period of time for which
      such amounts are payable. However the Participant may convert installment
      payments to a lump sum distribution subject to a penalty equal to a five
      percent (5%) reduction in the balance of the Participant's Restricted
      Deferred Compensation Account, which shall be forfeited to the Company.

                                    ARTICLE V

                          Designation of Beneficiaries

      5.1 Designation of Beneficiary. The Participant shall name one or more
beneficiaries and contingent beneficiaries to receive any payments due
Participant at the time of death. No designation of beneficiaries shall be valid
unless in writing signed by the Participant, dated and filed with the Committee
during the lifetime of such Participant. A subsequent beneficiary designation
will cancel all beneficiary designations signed and filed earlier under this
Plan, and such new beneficiary designation shall be applied to all amounts
previously credited to the Participant's Deferred Compensation Account (or
Restricted Deferred Compensation Account, as the case may be), as well as to any
amounts to be credited to such Participant's Deferred Compensation Account (or
Restricted Deferred Compensation Account, as the case may be), prospectively. In
case of a failure of designation, or the death of the designated beneficiary
without a designated successor, distribution shall be paid in one lump sum to
the estate of the Participant.

      5.2 Spouse's Interest. The interest in any amounts hereunder of a spouse
who has predeceased the Participant shall automatically pass to the Participant
and shall not be transferable by such spouse in any manner, including but not
limited to such spouse's will, nor shall such interest pass under the laws of
intestate succession.

      5.3 Survivor Benefits. Upon the Participant's death, any balances in the
Participant's Deferred Compensation Account and Restricted Deferred Compensation
Account shall be paid in accordance with the method and form elected by the
Participant; provided, however, that the balance of the Participant's Deferred
Compensation Account and Restricted Deferred Compensation Account may be paid
out as a lump sum at the request of the designated beneficiary, and with the
consent of the Committee.

                                   ARTICLE VI

                               Source of Payments

      All payments of deferred compensation shall be paid in cash from the
general funds of the Company and the Company shall be under no obligation to
segregate any assets in connection with the maintenance of a Deferred
Compensation Account or Restricted Deferred Compensation Account, nor shall
anything contained in this Plan nor any action taken pursuant to the Plan create
or be construed to create a trust of any kind, or a fiduciary relationship
between the Company and Participant. Title to the beneficial ownership of any
assets, whether cash or investments, which the

                                       10
<PAGE>

Company may designate to pay the amount credited to the Deferred Compensation
Account or a Restricted Deferred Compensation Account shall at all times remain
in the Company and Participant shall not have any property interest whatsoever
in any specific assets of the Company. Participant's interest in the Deferred
Compensation Account or a Restricted Deferred Compensation Account shall be
limited to the right to receive payments pursuant to the terms of this Plan and
such rights to receive shall be no greater than the right of any other unsecured
general creditor of the Company.

                                   ARTICLE VII

                                Change in Control

      7.1 Effect of Change in Control on Payment. Anything to the contrary in
this Plan notwithstanding, at any time a Participant may make an election (a
"Change in Control Election") to receive, in a single lump sum payment, upon the
occurrence of a Change in Control, the balance of his or her Deferred
Compensation Account and Restricted Deferred Compensation Account, as of the
valuation date immediately preceding the Change in Control. Any Change in
Control Election or revocation of an existing Change in Control Election shall
be null and void if a Change in Control occurs within 12 months after it is
made, and the Participant's most recent preceding Change in Control Election, if
timely made and not revoked at least 12 months before the Change in Control,
shall remain in force. Each such election or revocation shall be in writing and
in conformity with such rules as may be prescribed by the Committee. If no
Change in Control Election is in force upon the occurrence of a Change in
Control, from the date of such Change in Control and for twelve (12) months
thereafter, each Participant, whether or not he or she is still an employee of
the Company, shall have the right to withdraw, in a single lump-sum cash
payment, an amount equal to ninety-five percent (95%) of the balance of each of
his or her Deferred Compensation Account and Restricted Deferred Compensation
Account (a "95% Withdrawal"), as of the valuation date immediately preceding the
date of withdrawal; provided, however, that if this option is exercised, such
Participant will forfeit to the Company the remaining five percent (5%) of the
balance of each such account (as of the valuation date immediately preceding the
date of withdrawal) from which the funds are withdrawn as a penalty. Payments
pursuant to a 95% Withdrawal shall be made as soon as practicable, but no later
than thirty (30) days after the Participant notifies the Committee in writing
that he/she is exercising his/her right to undertake a 95% Withdrawal.

      7.2 Amendment on or after Change in Control. On or after a Change in
Control, or before, but in connection with, a Change in Control, no action,
including by way of example and not of limitation, the amendment, suspension or
termination of the Plan, shall be taken which would adversely affect the rights
of any Participant or the operation of this Article VII with respect to the
balance in the Participant's Accounts immediately before such action.

      7.3 Attorney's Fees. The Company shall pay all legal fees and related
expenses incurred by a Participant in seeking to obtain or enforce any payment,
benefit or right such Participant may be entitled to under the plan after a
Change in Control. The Participant 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.

                                       11
<PAGE>

                                  ARTICLE VIII

                            Nonalienation of Benefits

      Participant shall not have the right to sell, assign, transfer or
otherwise convey or encumber in whole or in part the right to receive any
payment under this Plan except in accordance with Article V.

                                   ARTICLE IX

                               Acceptance of Terms

      The terms and conditions of this Plan shall be binding upon the heirs,
beneficiaries and other successors in interest of Participant to the same extent
that said terms and conditions are binding upon the Participant.

                                    ARTICLE X

                           Administration of the Plan

      The Plan shall be administered by the Committee which may make such rules
and regulations and establish such procedures for the administration of this
Plan as it deems appropriate. In the event of any dispute or disagreements as to
the interpretation of this Plan or of any rule, regulation or procedure or as to
any questioned right or obligation arising from or related to this Plan, the
decision of the Committee shall be final and binding upon all persons.

                                   ARTICLE XI

                            Termination and Amendment

      The Plan may be terminated at any time by the Board of Directors of
Sunoco, Inc. and may be amended at any time by the Committee provided, however,
that no such amendment or termination shall adversely affect the rights of
Participants or their beneficiaries with respect to amounts credited to Deferred
Compensation Accounts or Restricted Deferred Compensation Accounts prior to such
amendment or termination, without the written consent of the Participant.

                                   ARTICLE XII

                                  Construction

      In the case any one or more of the provisions contained in this Plan shall
be invalid, illegal or unenforceable in any respect the remaining provisions
shall be construed in order to effectuate the purposes hereof and the validity,
legality and enforceability of the remaining provisions contained herein shall
not in any way be affected or impaired thereby.

                                       12
<PAGE>

                                  ARTICLE XIII

                                  Governing Law

      This Plan shall be construed in accordance with and governed by the laws
of the Commonwealth of Pennsylvania.

                                       13

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