Document:

EXHIBIT 4.1

     Registered                                              Registered

No. 1
$5,611,000
CUSIP No: 46625HAU4

                            J.P. MORGAN CHASE & CO.

     JPMorgan Market Participation Notes on the S&P 500(R)Index due March 12,
2008 ("Notes")

This security is not a deposit or other obligation of a bank and is not insured
by the Federal Deposit Insurance Corporation or by any other governmental
entity.

This security is a Registered Global Security within the meaning of the
Indenture hereinafter referred to and is registered in the name of Cede & Co.,
the nominee of The Depository Trust Company (the "Depositary"). This Registered
Global Security is exchangeable for Notes registered in the name of a Person
other than the Depositary or its nominee only in the limited circumstances
described in the Indenture, and no transfer of this security (other than a
transfer of this security as a whole by the Depositary to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary) may be registered except in such limited
circumstances. The Depositary will not sell, assign, transfer or otherwise
convey any beneficial interest in this Registered Global Security unless such
beneficial interest is in an amount equal to an authorized denomination for the
Notes, and the Depositary, by its acceptance hereof, agrees to be so bound.

Unless this security is presented by an authorized representative of the
Depositary to J.P. Morgan Chase & Co. or its agent for registration of
transfer, exchange or payment, and any Notes issued are registered in the name
of Cede & Co. or such other name as is requested by an authorized
representative of the Depositary (and any payment is made to Cede & Co. or to
such other entity as is an authorized representative of the Depositary), any
transfer, pledge or other use hereof for value or otherwise by or to any Person
is wrongful since the registered owner hereof, Cede & Co., has an interest
herein.

J.P. Morgan Chase & Co., a corporation duly organized and existing under the
laws of the State of Delaware (herein called the "Company," which term includes
any successor corporation under the Indenture hereinafter referred to), for
value received, hereby promises to pay to CEDE & CO., or registered assigns,
the amount due upon maturity, as determined in accordance with the formula set
forth under "Payment at Maturity" below, with respect to the principal sum of

        FIVE MILLION SIX HUNDRED ELEVEN THOUSAND DOLLARS ($5,611,000 ),

on March 12, 2008, on the terms and in the manner described on the reverse
hereof.

Payment at maturity will be made at the office or agency of the Company
maintained for that purpose in the Borough of Manhattan, The City of New York,
in such coin or currency of the United States of America as at the time of
payment is legal tender for the payment of public and private debts: provided,
however, that at the option of the Company, payment at maturity may be made by
check mailed to the address of the Person entitled thereto as such address
shall appear in the security register of the Company.

Reference is hereby made to the further provisions of this security set forth
on the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place.

Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof, or an Authenticating Agent, by
manual signature, this security shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

<PAGE>

Payment at Maturity

This security pays no interest. This security will mature on March 12, 2008
(the "Maturity Date").

At maturity, a Holder will be entitled to receive an amount in cash per each
$1,000 principal amount of this security equal to the principal amount of
$1,000 plus an additional amount ("Additional Amount") if the Final Average
Index Level (as defined below) exceeds the Initial Index Level (as defined
below), calculated as follows:

            $1,000 x Final Average Index Level - Initial Index Level
                     -----------------------------------------------
                                 Initial Index Level

; provided, however in no event will the Additional Amount exceed $400 per
$1,000 principal amount.

If this amount is zero or less, the Holder will not be paid an Additional
Amount.

The "Index" is the S&P 500(R) Index.

The "Initial Index Level" is equal to 822.10.

The "Index Closing Level" on any Trading Day will equal the closing level of
the Index or any Successor Index (as defined below) at the regular official
weekday close of the principal trading session of the NYSE, the AMEX, the
Nasdaq National Market or the relevant exchange or market for the Successor
Index.

The "Final Average Index Level" means the arithmetic average of the Index
Closing Levels on each Monthly Determination Date.

A "Monthly Determination Date" will be the 7th day of each calendar month from
and including April 7, 2003 to and including March 7, 2008; provided that, in
each case, if the Monthly Determination Date is not a Trading Day, the Monthly
Determination Date will be the immediately following Trading Day, subject in
each case to adjustment in the event of a Market Disruption Event.

If a Market Disruption Event occurs on any Monthly Determination Date, the
Index Closing Level will be determined on the immediately succeeding Trading
Day on which no Market Disruption Event occurs; provided that the Index Closing
Level will not be determined on a date later than the second scheduled Trading
Day prior to maturity, and if such day is not a Trading Day, or if there is a
Market Disruption Event on such date, J.P. Morgan Securities Inc., in its
capacity as Calculation Agent (the "Calculation Agent") will determine the
level of the Index on such date in accordance with the formula for and method
of calculating the Index last in effect prior to commencement of the Market
Disruption Event (or prior to the non-Trading Day), using the closing price
(or, if trading in the relevant securities has been materially suspended or
materially limited, its good faith estimate of the closing price that would
have prevailed but for such suspension or limitation or non-trading day) on
such date of each security most recently constituting the Index.

A "Trading Day" is a day, as determined by the Calculation Agent, on which
trading is generally conducted on the New York Stock Exchange, Inc., the
American Stock Exchange LLC, the Nasdaq National Market, the Chicago Mercantile
Exchange and the Chicago Board Options Exchange and in the over-the-counter
market for equity securities in the United States.

The Company will irrevocably deposit with the Depositary no later than the
close of business on the Maturity Date funds sufficient to make payments of the
principal amount and any Additional Amount payable at maturity with respect to
the Notes on such date. The Company will give the Depositary irrevocable
instructions and authority to pay such amount to the Holders of the Notes
entitled thereto. In the event that the Maturity Date is not a Business Day (as
defined below), then payments payable on such date will be made on the next
succeeding Business Day with the same force and effect as if made on such date,
except that, if such Business Day falls in the next calendar year

                                       2
<PAGE>

such payment will be made on the immediately preceding Business Day. A
"Business Day" is any day other than a day on which banking institutions in The
City of New York are authorized or required by law or regulation to close or a
day on which transactions in dollars are not conducted.

Calculation Agent

The Calculation Agent will determine the Index Closing Level on each Monthly
Determination Date, the Final Average Index Level and the Additional Amount, if
any, payable at maturity of this security. In addition, the Calculation Agent
will determine whether there has been a Market Disruption Event, a
discontinuance of the Index and whether there has been a material change in the
method of calculating the Index. All determinations made by the Calculation
Agent will be at the sole discretion of the Calculation Agent and will, in the
absence of manifest error, be conclusive for all purposes and binding on each
Holder and the Company.

The Calculation Agent will calculate the Additional Amount, if any, on the
final Monthly Determination Date. The Calculation Agent will provide written
notice to the Trustee at its New York office, on which notice the Trustee may
conclusively rely, of the Additional Amount, if any, on or prior to 11:00 a.m.
on the Business Day preceding the Maturity Date.

Market Disruption Events

With respect to the Index, a "Market Disruption Event" means:

        (i)(a)  a suspension, absence or material limitation of trading of
                stocks then constituting 20 percent or more of the level of the
                Index (or the relevant Successor Index) on the Relevant
                Exchanges (as defined below) for such securities for more than
                two hours of trading or during the one hour period preceding
                the close of the principal trading session on such relevant
                exchange; or

        (b)     a breakdown or failure in the price and trade reporting systems
                of any Relevant Exchange as a result of which the reported
                trading prices for stocks then constituting 20 percent or more
                of the level of the Index (or the relevant Successor Index)
                during the last one hour preceding the close of the principal
                trading session on such relevant exchange are materially
                inaccurate; or

        (c)     the suspension, absence or material limitation of trading on
                any major U.S. securities market for trading in futures or
                options contracts related to the Index (or the relevant
                Successor Index) for more than two hours of trading or during
                the one hour period preceding the close of the principal
                trading session on such market,

                in each case as determined by the Calculation Agent in its sole
                discretion; and

        (ii)    a determination by the Calculation Agent in its sole discretion
                that the event described above materially interfered with its
                ability or the ability of any of the Company's affiliates to
                adjust or unwind all or a material portion of any hedge with
                respect to the Notes.

For the purpose of determining whether a Market Disruption Event exists at any
time, if trading in a security included in the Index is materially suspended or
materially limited at that time, then the relevant percentage contribution of
that security to the level of the Index shall be based on a comparison of:

        (i)     the portion of the level of the Index attributable to that
                security relative to

        (ii)    the overall level of the Index,

                in each case immediately before that suspension or limitation.

                                       3

<PAGE>

For purposes of determining whether a Market Disruption Event has occurred:

        (i)     a limitation on the hours or number of days of trading will not
                constitute a Market Disruption Event if it results from an
                announced change in the regular business hours of the relevant
                exchange or market;

        (ii)    a decision to permanently discontinue trading in the relevant
                futures or options contract will not constitute a Market
                Disruption Event;

        (iii)   limitations pursuant to the rules of any relevant exchange
                similar to NYSE Rule 80A (or any applicable rule or regulation
                enacted or promulgated by any other self-regulatory
                organization or any government agency of scope similar to NYSE
                Rule 80A as determined by the Calculation Agent) on trading
                during significant market fluctuations will constitute a
                suspension, absence or material limitation of trading;

        (iv)    a suspension of trading in futures or options contracts on the
                Index by the primary securities market trading in such
                contracts by reason of

                (a)     a price change exceeding limits set by such exchange or
                        market,

                (b)     an imbalance of orders relating to such contracts, or

                (c)     a disparity in bid and ask quotes relating to such
                        contracts

                will, in each such case, constitute a suspension, absence or
                material limitation of trading in futures or options contracts
                related to the Index; and

        (v)     a "suspension, absence or material limitation of trading" on
                any relevant exchange or on the primary market on which futures
                or options contracts related to the Index are traded will not
                include any time when such market is itself closed for trading
                under ordinary circumstances.

"Relevant Exchange" means the primary U.S. organized exchange or market of
trading for any security (or any combination thereof) then included in the
Index or any Successor Index.

Discontinuance of the S&P 500 Index; Alteration of Method of Calculation

If Standard & Poor's, a division of McGraw-Hill Companies, Inc. ("S&P")
discontinues publication of the Index and S&P or another entity publishes a
successor or substitute index that the Calculation Agent determines, in its
sole discretion, to be comparable to the discontinued Index (such index being
referred to herein as a "Successor Index"), then any Index Closing Level will
be determined by reference to the level of such Successor Index at the close of
trading on the NYSE, the AMEX, the Nasdaq National Market or the relevant
exchange or market for the Successor Index on the relevant Monthly
Determination Date.

Upon any selection by the Calculation Agent of a Successor Index, the
Calculation Agent will cause written notice thereof to be promptly furnished to
the Trustee, to the Company and to the Holders of the Notes.

If S&P discontinues publication of the Index prior to, and such discontinuance
is continuing on, any Monthly Determination Date and the Calculation Agent
determines, in its sole discretion, that no Successor Index is available at
such time, then the Calculation Agent will determine the Index Closing Level
for such date. The Index Closing Level will be computed by the Calculation
Agent in accordance with the formula for and method of calculating the Index
last in effect prior to such discontinuance, using the closing price (or, if
trading in the relevant securities has been materially suspended or materially
limited, its good faith estimate of the closing price that would have prevailed
but for such suspension or limitation) at the close of the principal trading
session on such date of each security most recently comprising the Index.
Notwithstanding these alternative arrangements, discontinuance of the
publication of the Index on the Relevant Exchange may adversely affect the
value of the Notes.

                                       4

<PAGE>

If at any time the method of calculating the Index or a Successor Index, or the
value thereof, is changed in a material respect, or if the Index or a Successor
Index is in any other way modified so that such index does not, in the opinion
of the Calculation Agent, fairly represent the level of the Index or such
Successor Index had such changes or modifications not been made, then, from and
after such time, the Calculation Agent will, at the close of business in New
York City on each date on which the Index Closing Level is to be determined,
make such calculations and adjustments as, in the good faith judgment of the
Calculation Agent, may be necessary in order to arrive at a level of a stock
index comparable to the Index or such Successor Index, as the case may be, as
if such changes or modifications had not been made, and the Calculation Agent
will calculate the Index Closing Level and the Initial Index Level, if
necessary, with reference to the Index or such Successor Index, as adjusted.
Accordingly, if the method of calculating the Index or a Successor Index is
modified so that the level of such index is a fraction of what it would have
been if it had not been modified (e.g., due to a split in the index), then the
Calculation Agent will adjust such index in order to arrive at a level of the
Index or such Successor Index as if it had not been modified (e.g., as if such
split had not occurred).

Events of Default

Events of Default relating to the Notes are set forth in Section 5.01 of the
Indenture.

Alternate Additional Amount Calculation in Case of an Event of Default

In case an Event of Default with respect to the Notes shall have occurred and
be continuing, the amount declared due and payable for each Note upon any
acceleration of the Notes will be equal to $1,000 plus the Additional Amount,
if any, determined as though the Index Closing Level for any Monthly
Determination Date scheduled to occur on or after such date of acceleration
were the Index Closing Level on the date of acceleration.

Defeasance

The Notes will not be subject to the defeasance provisions contained in Article
13 of the Indenture.

                                       5

<PAGE>

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed
under its corporate seal.

Date: March __, 2003

J.P. MORGAN CHASE & CO.

By:
    ------------------------------------------------------
     Name:
     Title:

Attest:
       --------------------------------------------------
       Name:
       Title:

[Seal]

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred to in the within-mentioned Indenture.

DEUTSCHE BANK TRUST COMPANY AMERICAS
(f/k/a Bankers Trust Company),
As Trustee

BY: JPMORGAN CHASE BANK,
As Authenticating Agent

By:____________________________
     Name:
     Title:

                                       6

<PAGE>

                             [REVERSE OF SECURITY]

 JPMorgan Market Participation Notes on the S&P 500(R)Index due March 12, 2008

This security is one of a duly authorized issue of securities of the Company
(herein called the "Notes"), issued and to be issued in one or more series
under an Indenture dated as of May 25, 2001, (the "Indenture"), between the
Company and Deutsche Bank Trust Company Americas (f/k/a Bankers Trust Company)
(herein called the "Trustee", which term includes any successor trustee under
the Indenture), to which Indenture reference is hereby made for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee, and the Holders and of the terms upon which the
Notes are, and are to be, authenticated and delivered. This security is one of
the series designated as the JPMorgan Market Participation Notes on the S&P
500(R) Index due March 12, 2008 of the Company, which series shall have an
aggregate principal amount of $5,611,000.

The Notes are not redeemable at the option of the Company prior to maturity and
are not subject to any sinking fund.

If an Event of Default specified under the Indenture with respect to the Notes
shall occur and be continuing, the Notes may be declared due and payable in the
manner and with the effect provided in the Indenture and on the face hereof and
the Calculation Agent will determine the Additional Amount in accordance with
the calculation set forth under "Alternate Additional Amount Calculation in
Case of an Event of Default" on the face hereof. Upon payment of the amount so
declared due and payable, all of the Company's obligations in respect of the
payment due at maturity on the Notes shall terminate.

The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a majority in aggregate principal amount of the
securities at the time Outstanding of each series to be affected. The Indenture
also contains provisions permitting the Holders of specified percentages in
aggregate principal amount of the securities of each series at the time
Outstanding, on behalf of the Holders of all securities of such series, to
waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this security shall be conclusive and
binding upon such Holder and upon all future holders of this security and of
any Notes issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this security.

As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this security is registrable in the security register of
the Company, upon surrender of this security for registration of transfer in
any place where the amount due at maturity of this security is payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the security registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Notes, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

The Notes are issuable only in registered form without coupons in denominations
of $1,000 and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Notes are exchangeable for a
like aggregate principal amount of Notes of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

Prior to due presentment of this security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this security is registered as the owner hereof and for

<PAGE>

all purposes, whether or not this security shall be overdue, and neither the
Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

No recourse for the payment of amounts due at maturity of this security or for
any claim based hereon or otherwise in respect hereof, and no recourse under or
upon any obligation, covenant or agreement of the Company in the Indenture or
any indenture supplemental thereto or in this security, or because of the
creation of any indebtedness represented thereby, shall be had against any
incorporator, stockholder, officer or director, as such, past, present or
future, of the Company or of any successor corporation, either directly or
through the Company, or any successor corporation, whether by virtue of any
constitution, statute or rule of law or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as
part of the consideration for the issue hereof, expressly waived and released
by each Holder of this security.

All terms used in this security which are defined in the Indenture shall have
the meanings assigned to them in the Indenture.

This security shall be governed by and construed in accordance with the laws of
the State of New York.

                                       2Long-Term Performance Enhancement Plan

Exhibit 10.1 
 

 
SUNOCO, INC. 
 
LONG-TERM
PERFORMANCE ENHANCEMENT PLAN 
 
(Amended as
of February 5, 2003) 
 

ARTICLE I 
Definitions 
 
As used in this Plan, the following terms shall have the meanings herein specified: 
 
1.1 Affiliate—shall mean any entity that directly, or indirectly through one or more intermediaries, controls, is controlled by, or
is under common control with Sunoco, Inc. 
 
1.2
Board of Directors—shall mean the Board of Directors of Sunoco, Inc. 
 
1.3 Business Combination—shall have the meaning provided herein at Section 1.4(c). 
 
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) (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 Sunoco, Inc. (the “Outstanding Company Common Stock”) or (2) the combined voting power of the then-outstanding voting securities of Sunoco, Inc. 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 Sunoco, Inc., (B) any
acquisition by Sunoco, Inc., (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Sunoco, Inc. or any company controlled by, controlling or under common control with Sunoco, Inc. 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 shareholders of
Sunoco, Inc., was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board of Directors; 
 
(c) Consummation of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving Sunoco, Inc., or any of its subsidiaries, a sale or other disposition of all or substantially all of
the assets of Sunoco, Inc., or the acquisition of assets or stock of another entity by Sunoco, Inc. 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 corporation
resulting from such Business Combination (including, without limitation, a corporation 

 

1 

that, as a result of such transaction, owns Sunoco, Inc. or all or substantially all of the assets of Sunoco, Inc., either directly or
through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (2)
no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of Sunoco, Inc. or such corporation resulting from such Business Combination or any of their respective subsidiaries)
beneficially owns, directly or indirectly, 20% or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then-outstanding voting securities
of such corporation, except to the extent that such ownership existed prior to the Business Combination, and (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 Sunoco, Inc., of a complete liquidation or dissolution of
Sunoco, Inc. 
 
1.5 Code—shall mean the
Internal Revenue Code of 1986, as amended. 
 
1.6
Committee—shall mean the committee appointed to administer this Plan by the Board of Directors, 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. 
 
1.7 Common Stock—shall mean the authorized and unissued or treasury shares of common stock of Sunoco, Inc. 
 
1.8 Common Stock Units—shall have the meaning provided
herein at Section 6.1. 
 
1.9 Company—shall
mean Sunoco, Inc., and any Affiliate. 
 
1.10 CSU
Payout Date—shall have the meaning provided herein at Section 6.9. 
 
1.11 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. 
 
1.12 Dividend
Equivalents—shall have the meaning provided herein at Section 6.3. 
 
1.13 Dividend Equivalent Account—shall have the meaning provided herein at Section 6.3. 
 
1.14 Employment Termination Date—shall mean the date on which the employment relationship between the Participant and the Company is
terminated. 
 
1.15 Exchange Act—shall mean
the Securities Exchange Act of 1934, as amended. 
 
1.16 Exercise Period—shall have the meaning provided herein at Section 5.3. 
 

2 

1.17 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. 
 
1.18
Incentive Stock Options—shall have the meaning provided herein at Article IV. 
 
1.19 Incumbent Board—shall have the meaning provided herein at Section 1.4(b). 
 
1.20 Just Cause—shall mean, for any Participant who is a participant in the Sunoco, Inc. 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 1.33), 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. 
 
1.21 Limited Rights—shall have the meaning provided herein at Article V. 
 
1.22 Market Price—shall have the meaning provided herein at Section 5.4. 
 
1.23 Option—shall mean Stock Option and/or Incentive
Stock Option. 
 
1.24 Option Price—shall mean
the purchase price per share of Common Stock deliverable upon the exercise of an Option. 
 
1.25 Optionee—shall mean the holder of an Option. 
 
1.26 Outstanding Company Common Stock—shall have the meaning provided herein at Section 1.4(a). 
 
1.27 Outstanding Company Voting Securities—shall have the
meaning provided herein at Section 1.4(a). 
 
1.28
Participant—shall have the meaning provided herein at Section 2.4(a). 
 
1.29 Performance Factors—shall mean the various payout percentages related to the attainment levels of one or more Performance Goals, as determined by the Committee. 
 

3 

1.30 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. 
 
1.31 Performance Period—shall have the meaning provided herein at Section 6.4. 
 
1.32 Person—shall have the meaning provided herein at
Section 1.4(a). 
 
1.33 Qualifying
Termination—shall mean, with respect to the employment of any Participant who is a participant in the Sunoco, Inc. 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 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 
 

4 

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 Sunoco, Inc. 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. 
 
1.34 Stock Options—shall have the meaning provided herein at Section 3.1. 
 
1.35 Sunoco, Inc.—shall mean Sunoco, Inc., a Pennsylvania
corporation, and any successor thereto by merger, consolidation, liquidation or purchase of assets or stock or similar transaction. 
 
ARTICLE II 
Background, Purpose and Term of Plan; Participation & Eligibility for Benefits 
 
2.1 Background. Effective on December 31, 1996, no further awards shall be made under the Sunoco, Inc. Executive Long-Term Stock
Investment Plan adopted in May, 1991 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. Long-Term Performance Enhancement 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 the ability to increase equity ownership in Sunoco, Inc.; 

	

(c) provide competitive compensation opportunities which can
be realized through attainment of performance goals; and 
 
(d) provide an incentive to management for continuous employment with the Company. 
 
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 will become
effective upon approval by the holders of a majority of the votes present, in person or represented by proxy, at the 1997 Annual Meeting of Shareholders of Sunoco, Inc No awards will be made under the Plan after December 31, 2001, unless the Board
of Directors extends this date to a date no later than December 31, 2006. The Plan and all awards made under the Plan prior to such date (or extended date) shall remain in effect until such awards have been satisfied or terminated in accordance with
the Plan and the terms of such awards. 
 

5 

 
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) Limited Rights, as described in Article V;
and/or 
 
(d) Common Stock Units,
as described in Article VI. 
 
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 four million (4,000,000). 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) net of shares of Common Stock used as full or partial payment for such shares upon exercise of an Option; 
 

6 

 
(c) 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 V) 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. 
 
(d) The maximum number of Options that shall be granted with respect to each calendar year to a Participant shall be
two-hundred thousand. 
 
(e) The
maximum number of Common Stock Units granted with respect to each calendar year to a Participant shall be fifty thousand. 
 
(f) The maximum number of Common Stock Units granted under the Plan will be one million. 
 
The share limits set forth in this Section 2.7 shall be
adjusted to reflect any capitalization changes as discussed in Section 7.9. 
 
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. 
 
3.4 Term and Exercise. The term and the vesting schedule of
the Stock Options shall be determined by the Committee. However, except as otherwise provided in Section 3.10, no Stock Option may be exercisable before the second anniversary of the date of grant or after the tenth anniversary of the date of grant.
No Stock Option shall be exercisable after the expiration of its term. 
 

7 

 
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, the Sunoco, Inc. Executive Long-Term Stock Investment Plan or this Plan
must be held at least six 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 Sunoco, Inc. 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 unvested Stock Options shall terminate immediately, and all vested 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: 
 
(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 
 

8 

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” (intended to qualify as
such under the provisions of Section 422 of the Internal Revenue Code of 1986, (the “Code”) as amended (“Incentive Stock Options”)) 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 Sunoco, Inc. and its subsidiaries (within the meaning of Section 424(f) of the Code). 
 
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. The term and the vesting
schedule of the Incentive Stock Option shall be determined by the Committee. However, no Incentive Stock Option may be exercisable before the second anniversary of the date of grant or after the tenth anniversary of such date. No Incentive Stock
Option shall be exercisable after the expiration of its term. 
 
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 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 Sunoco, Inc. and its subsidiaries (within the meaning of Section 424(f) of the Code) 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). 
 

9 

 
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 unvested Incentive Stock Options shall terminate immediately, and
all vested Incentive 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 Incentive 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 Company will have the remainder of any exercise period provided under Section 4.6 and 4.7.

 
4.9 Applicability of Stock Options Selections.
Section 3.5, Manner of Payment, Section 3.6, Issuance and Delivery of Shares, Section 3.10, Acceleration of Options and Section 3.11, 
 

10 

Effect of Exercise, applicable to Stock Options, shall apply equally to Incentive Stock Options. Said Sections are incorporated by reference
in this Article IV as though fully set forth herein. 
 
ARTICLE V 
Limited Rights 
 
5.1 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”). 
 
5.2 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. 
 
5.3 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”). 
 
5.4 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

 
(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.

 
5.5 Form of Payment. Payment of the amount to
which an Optionee is entitled upon the exercise of Limited Rights, as determined pursuant to Section 5.4, shall be made solely in cash. 
 
5.6 Effect of Exercise. If Limited Rights are exercised, the Stock Options, 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, 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 were exercised or terminated; provided, however, that with respect to Options 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. 
 
5.7 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) 
 

11 

months from the date of termination, exercise any Limited Rights to the extent such Limited Right is
exercisable during such six-month period. 
 
5.8
Death of Optionee or Termination for Other Reasons. Except as provided in Sections 5.7 and 5.9 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. 
 
5.9 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 5.7 and 5.8 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 VI 
Common Stock Units 
 
6.1 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 6.4); or 
 
(b) the attainment of certain predetermined performance objectives during a stated period (Section 6.5). 
 
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. 
 
6.2 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. 
 
6.3 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”) Sunoco, Inc. 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. 
 
6.4 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 
 

12 

“Performance Period”). Performance Periods will normally be from three (3) to five (5) years;
however, the Committee at its sole discretion may establish other time periods. 
 
6.5 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 preestablished 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. 
 
6.6 Payment of Common Stock Units and Dividend Equivalent Account. Payment in respect of Common Stock Units earned (as determined under Sections 6.4 and 6.5) shall be made to the holder thereof within
ninety (90) days after the Performance Period for such units has ended, 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 6.9. 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 6.4 and 6.5) by the holder minus applicable federal, state and local withholding tax due.

 
6.7 Death, Disability or Retirement.

 
(a) Upon the termination of a
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 6.1(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. 
 

13 

 
(2) in the case of an award of Common Stock Units made pursuant to Section 6.1(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. 
 
6.8 Termination of Employment. Except as provided in Sections 6.7 and 6.9, 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. 
 
6.9 Change in Control. In the event of a Change in Control,
Common Stock Units shall be paid 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 the applicable Performance Goals have been met. For a Change in Control occurring within the first consecutive twelve-month period following the date of grant, the number of performance-based Common Stock Units paid out with regard to such
grant shall be equal to the total number of Common Stock Units outstanding in such grant as of the Change in Control, not adjusted for any Performance Factors described in Section 6.5. For a Change in Control occurring after the first consecutive
twelve-month period following the date of grant, the number of performance-based Common Stock Units paid out with regard to such grant shall be the greater of (i) the total number of Common Stock Units outstanding in such grant as of the Change in
Control, not adjusted for any Performance Factors described in Section 6.5 or (ii) the total number of such Common Stock Units outstanding in such grant, multiplied by the applicable Performance Factors related to the Company’s actual
performance immediately prior to the Change in Control. In the case of an award of Common Stock Units conditioned upon the Participant’s continued employment, the total number of Common Stock Units outstanding in such grant as of the Change in
Control shall be paid to the Participant. The Participant’s Common Stock Units shall be payable to the Participant in cash or stock, as determined by the Committee prior to the Change in Control, as follows: 
 
(a) 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 as stated above in this Section 6.9; or 
 
(b) if the Participant is to receive cash, the Participant will be paid an amount in cash equal to the number of Common
Stock Units stated above in this Section 6.9 multiplied by the Market Price as defined in Section 5.4. Such amount will be reduced by the applicable federal, state and local withholding taxes due. 
 
On or before the CSU Payout Date, the Participant will be paid
an amount in cash equal to the applicable Dividend Equivalents on the number of Common Stock Units being paid pursuant to this Section 6.9 for the time period immediately preceding the change in Control. Payout of Common Stock Units and the Dividend
Equivalents shall be made to each Participant: 
 

14 

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

 
(d) 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.

 
ARTICLE VII 
Miscellaneous 
 
7.1 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. 
 
7.2 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. 
 
7.3 Right to Terminate Employment; Effect of Disaffiliation. 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. If an Affiliate ceases to be an Affiliate as a result of the sale or other disposition by Sunoco, Inc. or one of its continuing Affiliates of its
ownership interest in the former Affiliate, or otherwise, then individuals who remain employed by such former Affiliate thereafter shall be considered for all purposes under the Plan to have terminated their employment relationship with the Company.

 

15 

7.4 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. 
 
7.5 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. 
 
7.6 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 (i) whether or not any such leave of absence shall constitute a termination of employment within the meaning of the Plan and (ii)
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. 
 
7.7 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. 
 
7.8 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. 
 
7.9 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 award levels established in Section 2.7, including the maximum number of shares of Common Stock which may be issued under the Plan (other than increases pursuant to Section 7.8); 
 
(2) extend the term during which an Option
may be exercised beyond ten years from the date of grant; or 
 

16 

(3) extend the term of the Plan, except that the Board of Directors may
extend the period during which awards may be made in accordance with Section 2.3. 
 
The termination or any modification or amendment of the Plan, except as provided in Section 7.9(a) above, shall not without the consent of a Participant, affect the Participant’s rights under an
award previously granted. 
 

17

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