Document:

Sunoco, Inc. Deferred Compensation Plan

 Exhibit 10.2 

  
 SUNOCO, INC. 
  
 DEFERRED COMPENSATION PLAN 
  
 (Amended effective January 1, 2005 and Restated effective July 1, 2005) 
  

 ARTICLE I 
  

Definitions 
  
 1.1 95% Withdrawal - shall have the meaning set forth herein at Section 5.1. 
  
 1.2 Business Combination - shall have the meaning set forth herein at Section 1.4(c). 
  
 1.3 Cash Unit - shall mean the entry in a Deferred Bonus 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) (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, 

  

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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 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 set forth herein at Section 5.1. 
  
 1.6 Committee - shall mean the Compensation 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 Deferred Bonus Account - shall mean, with respect to any Participant, the total amount of the Company’s liability for payment of deferred
compensation to the Participant under this Plan, including any accumulated Interest Equivalents and/or Dividend Equivalents. 
  

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 1.9 Dividend Equivalent - shall mean the entry in a Participant’s Deferred Bonus 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. 
  
 1.10 Exchange Act - shall mean the Securities Exchange Act of 1934, as amended. 
  
 1.11 Executive Resource Employee - shall mean any individual employed by the Company who has been designated by the
Company as a member of the Company’s executive resources group. Generally such group shall include employees in Grades 14-20 and all employees subject to Section 16 of the Exchange Act. 
  
 1.12 Incentive Plan - shall mean the Sunoco, Inc. Executive Incentive
Plan. The Incentive Plan provides that the Board of Directors may pay bonuses annually, as additional compensation to such employees as the Board determines have principally contributed to the profitability of the Company. 
  
 1.13 Incumbent Board - shall have the meaning set forth herein at
Section 1.4(b). 
  
 1.14 Interest Equivalent - shall
mean the entry in a Participant’s Deferred Bonus Account of an interest credit with respect to a Cash Unit, compounded on the basis of the balance in the Participant’s Deferred Bonus Account, applying the interest factor approved by the
Committee each year for such purpose. 
  
 1.15 Non-Cash
Bonus - shall have the meaning set forth herein at Section 4.1. 
  
 1.16 Outstanding Company Common Stock - shall have the meaning set forth herein at Section 1.4(a). 
  
 1.17 Outstanding Company Voting Securities - shall have the meaning set forth herein at Section 1.4(a). 
  
 1.18 Participant - shall mean any Executive Resource Employee who
meets the eligibility requirements of the Incentive Plan and who is participating in this Plan. 
  
 1.19 Permanent and Total Disability - shall mean, with respect to any Participant, that such Participant is eligible to receive benefits under the
applicable long-term disability plan of such Participant’s employer. 
  
 1.20 Person - shall have the meaning set forth herein at Section 1.4(a). 
  
 1.21 Plan - shall mean the Deferred Compensation Plan set forth herein and as it may be amended from time to time. 
  
 1.22 Retirement - shall mean the date on which a Participant is
retired in accordance with the applicable retirement plan, program, or policy of such Participant’s employer. 
  

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 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, except for the Company’s Series A Preference Stock. 
  
 1.24 Share Unit - shall mean the entry in a Participant’s
Deferred Bonus Account of a credit equal to one Share. 
  
 1.25
Subsidiaries - shall mean corporations in which the Company, directly or indirectly owns fifty percent (50%) or more of the outstanding voting stock. 
  
 ARTICLE II 
  
 Background and Purpose of Plan 
  
 2.1 Purpose. The Company has established this Deferred Compensation Plan to provide Executive Resource Employees who are participants in the
Incentive Plan with the option to irrevocably defer the receipt of all or a portion of the bonus to which such participants would otherwise be entitled, subject to the terms and conditions hereinafter set forth. 
  
 2.2 Creation of Deferred Bonus Account. Each of the following shall be
credited to a Deferred Bonus Account established by the Company for each Participant: 
  
 (a) any bonus amounts voluntarily deferred by the Participant pursuant to Article III (Deferral of Bonuses by Participant) hereof; and/or

  
 (b) any Non-Cash Bonus amounts deferred in
the discretion of the Committee pursuant to Article IV (Deferral of Bonuses by Committee) hereof. 
  
 Any bonus amounts voluntarily deferred by the Participant will be credited to a Participant’s Deferred Bonus Account in the form of Cash Units or
Share Units, in the discretion of the Participant, as set forth in the Plan. The deferral of any Non-Cash Bonus amounts caused by action of the Committee will be credited to a Participant’s Deferred Bonus Account in the form of Cash Units or
Share Units as the Committee, in its sole discretion, may decide in accordance with the Plan. 
  
 2.3 Cessation of Deferrals. Notwithstanding any other provision of the Plan, no Executive Resource Employee may elect pursuant to Article III of the Plan to defer any portion of his or her bonus paid after
December 31, 2004 under the Incentive Plan. Notwithstanding any other provision of the Plan, no deferrals may be made by the Committee pursuant to Article IV of the Plan with respect to any bonus paid under the Incentive Plan after
December 31, 2004. It is intended that all deferrals credited to Participants’ Deferred Bonus Accounts before January 1, 2005 (including all Dividend 

  

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Equivalents and Interest Equivalents credited with respect to such deferrals) not be subject to IRC Section 409A, and no action shall be taken that
would constitute a material modification to a benefit or right under the Plan as existing on October 3, 2004, as set forth under Proposed Regulation 1.409A-6(a)(4), or other applicable guidance issued under IRC Section 409A. 
  
 ARTICLE III 
  
 Deferral of Bonuses by Participant 
  
 3.1 Participant’s Election to Defer. A Participant voluntarily
may elect to defer, in the form of Cash Units or Share Units, all or a portion of his or her bonus to be paid under the Incentive Plan before January 1, 2005 by filing a written election with the Committee on forms prescribed by the Committee.
Such election must include the following: 
  
 (a)
percentage of bonus 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) a designation of beneficiary as set forth in Article VI (Designation of Beneficiaries); and 
  
 (d) an irrevocable election of a method of payment as set
forth in Section 3.10 hereof. 
  
 Any such voluntary election
by the Participant shall apply only to bonuses for the year specified in the election. 
  
 3.2 Amount of Deferral. The amount of bonus to be deferred in any year shall be designated by the Participant as a percentage of such Participant’s bonus in multiples of five percent (5%) but shall
not be less than ten percent (10%). 
  
 3.3 Time of
Election. A separate election to defer must be filed for each year and must be received by the Company no later than forty-five (45) days before the end of the year in which the bonus is earned. Any election by a Participant with respect to
a bonus in a given year will not preclude a different action with respect to bonuses in subsequent years, consistent with the provisions of this Article III with respect to the giving of notice of deferral election. 
  
 3.4 Crediting Share Units. Share Units shall be credited to a
Participant’s Deferred Bonus Account at the time the bonus otherwise would have been paid had no election to defer been made. The number of Share Units to be credited to the Deferred Bonus Account shall be determined by dividing the portion of
bonus to be deferred by the average closing price for Shares as published in the consolidated trading tables of the Wall Street Journal (under the caption “New York Stock Exchange Composite Transactions”) or any other publication selected
by the 

  

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Committee for the ten (10) day period prior to the day on which the bonus otherwise would have been paid. Any fractional Share Units shall also be
credited to a Participant’s Deferred Bonus Account. Share Units shall not entitle any person to the rights of a shareholder. 
  
 3.5 Crediting Dividend Equivalents. For Share Units, the Company shall credit the Participant’s Deferred Bonus 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 Bonus Account shall be calculated by
dividing the Dividend Equivalents by the average closing price for Shares as published in the consolidated trading tables of 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
Bonus Account. 
  
 3.6 Crediting Cash Units. Cash Units
shall be credited to a Participant’s Deferred Bonus Account at the time the bonus would otherwise have been paid had no election to defer been made. 
  
 3.7 Crediting Interest Equivalents. For Cash Units credited to a Participant’s Deferred Bonus Account, the Company shall credit such
Participant’s Deferred Bonus Account on a quarterly basis with an Interest Equivalent. 
  
 3.8 Share Unit Conversion. Immediately upon termination of the Participant’s employment with the Company, and so prior to the commencement of any payout or distribution of any amounts hereunder, the
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 Bonus 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 as published in the consolidated trading tables of 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. 
  
 3.9 Time of Payment. Except as provided in Article V (“Change in Control”) hereof, all payments of a Participant’s Deferred Bonus
Account shall be made at, or shall commence on, the date selected by the Participant in accordance with the terms of this Article III. 
  
 (a) Election of Benefit Commencement Date. The date of payment or distribution must be irrevocably specified by the Participant in
his or her written notice of election. The Participant may elect to defer the receipt of all or a specified portion of such Participant’s bonus to: 
  
 (1) the first day of any calendar year provided such date is at least six (6) months after the end of the quarter in which the bonus is earned; or

  

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

	 	(i)	the Participant’s retirement; 

  

	 	(ii)	final determination that the Participant has a Permanent and Total Disability; 

  

	 	(iii)	termination of the Participant’s employment with the Company; 

  

	 	(iv)	death of the Participant. Upon the death of a Participant prior to the final payment of all amounts credited to his or her Deferred Bonus Account, the balance of the Deferred Bonus
Account shall be paid in accordance with Article VI (“Designation of Beneficiaries”) hereof, commencing on the first day of the calendar year following the year of death. 

  
 Notwithstanding the foregoing provisions of this Section 3.9, and except
as provided in Article V (“Change in Control”) hereof, in no event shall any payment or distribution be made within six (6) months of the bonus being earned or awarded. The benefit commencement date may not be later than the third
calendar year following the date of: (i) Participant’s retirement, or (ii) termination of Participant’s employment. 
  
 (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 Bonus Account, such Participant may request in writing to accelerate the receipt of all or a specified portion of such deferred bonus amounts to the first day of any calendar year; provided,
however, that such date is at least six (6) months after the end of the quarter in which the bonus 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 Bonus Account, which shall be forfeited to the Company. 
  
 3.10 Method of Payment. A Participant in this portion of the Deferred Compensation Plan 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 
  

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 (c) not selecting a method of payment at the time the Form for Deferred Payment
Election/Designation of Beneficiary 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 Company as to the
specific method of payment which will be either in a lump sum or in approximately equivalent annual installments. Failure to provide appropriate notification to the Company 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 Bonus Account. Share Units credited to the Participant’s Deferred Bonus Account shall be valued at the average closing price for Shares as published in the consolidated trading tables of 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. 
  
 3.11 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 Bonus
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 Bonus Account balance, as well as to amounts to be credited to such Deferred Bonus 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 Bonus 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 Bonus 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 Bonus Account, which shall be forfeited to the Company.

  

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 3.12 Hardship Distribution. Participant may request a modification in the payment terms hereunder
only in the event of severe financial hardship and only to the extent reasonably necessary to eliminate the hardship. Such request shall specify in detail the grounds for the requested modification and shall be referred to the Committee. A
qualifying severe financial hardship must be caused by accident, illness, or event beyond the control of the Participant. The decision of the Committee with respect to the requested modification shall be solely at the discretion of the Committee and
in accordance with its evaluation of the exigencies of the situation. Such decision shall be binding on the Company and Participant. 
  
 3.13 Distributions in 2005 under IRC Section 409A Transition Rules. 
  
 (a) Certain Participants Not Employed by the Company on January 1, 2005. In accordance with the
transition guidance set forth in Section 18(c) of IRS Notice 2005-1, the Deferred Bonus Account of a Participant who on January 1, 2005 (i) was not employed by the Company, and (ii) was employed by a subsidiary or affiliate of
the Company that has not adopted the Plan, shall be distributed to the Participant on or before December 31, 2005, and such Participant shall cease to participate in the Plan as of the date of such distribution. 
  
 (b) Revocation of Participant’s Election to Defer
for Bonus Awarded under Incentive Plan for Calendar Year 2004 and Paid in 2005. In accordance with the transition guidance set forth in Section 20 of IRS Notice 2005-1, a Participant who elected pursuant to Section 3.1 of the Plan to
defer all or a portion of his or her bonus awarded under the Incentive Plan with respect to calendar year 2004 and payable in 2005, may cancel such deferral election on or before December 31, 2005, in accordance with the provisions of Sections
20(a), (b) and (c) of IRS Notice 2005-1, and in the form and manner prescribed by the Committee, and the amount in the Participant’s Deferred Bonus Account attributable to the cancelled deferral, including Dividend Equivalents and/or
Interest Equivalents credited to the Participant’s Deferred Bonus Account with respect to such cancelled deferral, shall be distributed to the Participant on or before December 31, 2005. 
  
 (c) Crediting Interest Equivalents. For Cash Units
distributed pursuant to this Section 3.13 on a date other than the end of a calendar quarter, Interest Equivalents shall be credited to such Participant’s Deferred Bonus Account on a pro rata basis based on the number of calendar days the
Cash Units were in the Participant’s Deferred Bonus Account for such calendar quarter compared to the total number of calendar days in such calendar quarter. 
  
 (d) Valuation of Share Units. Share Units credited to the Participant’s Deferred Bonus Account
shall be valued at the average closing price for Shares as published in the consolidated 

  

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trading tables of 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 distribution pursuant to this Section 3.13. 
  
 ARTICLE IV 
  
 Deferral of Bonuses by Committee 
  
 4.1 Committee’s Election to Defer. Each year ending on or before December 31, 2004 in conjunction with the payment of any bonus to the Participant, the Committee, in its sole discretion, may cause to
be credited to a Participant’s Deferred Bonus Account in the form of either Cash Units or Share Units, a specified dollar amount representing all or a portion of such Participant’s bonus for that year (the “Non-Cash Bonus”).

  
 4.2 Crediting Share Units. Share Units shall be
credited to a Participant’s Deferred Bonus Account at the time the bonus would otherwise have been paid had no Committee action to defer been taken. The number of Share Units credited to the Participant’s Deferred Bonus Account shall be
determined by dividing the Non-Cash Bonus by the average closing price for Shares as published in the consolidated trading tables of 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 date such bonus otherwise would have been paid had no Committee action been taken. Any fractional Share Units shall also be credited to such Participant’s
Deferred Bonus Account. 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 Deferred Bonus 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 Bonus Account shall be calculated by dividing the Dividend
Equivalents by the average closing price for Shares as published in the consolidated trading tables of 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 Bonus Account. 
  
 4.4 Crediting Cash Units. Cash Units shall be credited to a
Participant’s Deferred Bonus Account at the time the bonus otherwise would have been paid had no Committee action to defer been taken. 
  

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 4.5 Crediting Interest Equivalents. For Cash Units credited to a Participant’s Deferred Bonus
Account, the Company shall credit such Participant’s Deferred Bonus Account on a quarterly basis with an Interest Equivalent. 
  
 4.6 Share Unit Conversion. Immediately upon termination of the Participant’s employment with the Company, and so prior to the commencement of
any payout or distribution of any amounts hereunder, the 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 Bonus 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 as published in the consolidated trading tables of 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. 
  
 4.7 Time of Payment. 
  
 (a) Benefit Commencement Date Specified by Committee. The Committee will specify in writing its election of the earliest date of
payment or distribution, and such election shall remain effective until revoked in writing by the Committee. If the Committee elects a new date with regard to payment or distribution, such election will apply only prospectively to any additional
Share Units and/or Cash Units to be credited to such Participant’s Deferred Bonus Account by Committee action in accordance with this Article IV. If the Committee fails to designate a time of payment, payment shall commence on the first day of
the calendar year following the termination of such Participant’s employment. Notwithstanding the foregoing provisions of this Section 4.7, in no event, however, shall the payment date be later than the third calendar year following the
date of: (i) Participant’s retirement, or (ii) termination of Participant’s employment. 
  
 (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 Bonus Account, such Participant may request in writing to accelerate the receipt of all or a specified portion of such deferred bonus amounts to the first day of any calendar year; provided,
however, that such date is at least six (6) months after the end of the quarter in which the bonus 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 Bonus Account, which shall be forfeited to the Company. 
  
 4.8 Method of Payment. The Participant must select a method of payment at least twelve (12) months prior to the time the deferral amount is scheduled to be paid, by notifying the Company as to whether the
method of payment will be either: 
  
 (a) a lump
sum payment; or 
  

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 (b) a series of approximately equivalent annual installments (adjusted as necessary to
reflect Dividend Equivalents accrued during the installment payout period), in such number of installments as the Participant shall specify (not exceeding twenty (20) installments). 
  
 If no election is made, payment or distribution of any amounts deferred by Committee action pursuant to this Article IV
(together with the Dividend Equivalents and/or Interest Equivalents, as the case may be, accrued thereon) shall be made in a single lump sum on the earliest payment date permitted by the Committee as provided under Section 4.7 hereof. Share
Units credited to the Participant’s Deferred Bonus Account shall be valued at the average closing price for Shares as published in the consolidated trading tables of 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. 
  
 4.9 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 Bonus 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 Bonus Account balance, as well as to amounts to be credited to such
Deferred Bonus 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
Bonus 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 Bonus 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 Bonus Account, which shall be forfeited to the Company. 
  

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 ARTICLE V 
  

Change in Control 
  
 5.1 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 Bonus 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 his or her Deferred Bonus 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. 
  
 5.2 Amendment in Connection with 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 V with respect to the balance in the Participant’s Accounts immediately before such action. 
  
 5.3 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 

  

 13 

 
independent third party having similar authority, determines that the Participant’s claim was frivolously brought without reasonable expectation of
success on the merits thereof. 
  
 ARTICLE VI 
  
 Designation of Beneficiaries 
  
 The Participant shall name a beneficiary to receive any payments due such
Participant at the time of death, with the right to change such beneficiary at any time. In case of a failure of designation or the death of the designated beneficiary without a designated successor, distribution shall be made to the person or
persons designated as beneficiary in the designation most recently filed under the Sunoco, Inc. Capital Accumulation Plan, or if no such designation has been made or the Participant is not participating in such plan, the surviving spouse of a
deceased Participant, or, if there is no surviving spouse, the children of the Participant in equal shares (the share of any child who predeceases the Participant to go in equal shares to the issue of such deceased child), or if there is no
surviving spouse, child, or issue of such children, the estate of the Participant. No designation of beneficiaries shall be valid unless in writing signed by the Participant, dated and filed with the Company. Upon the Participant’s death, any
balance in the Participant’s Deferred Bonus Account is payable under the method elected by the Participant or in such other manner as the Committee may determine in its sole discretion. 
  
 ARTICLE VII 
  
 Miscellaneous 
  
 7.1 Source of Payments. All payments of deferred bonuses 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 the Deferred Bonus 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 Company may designate
to pay the amount credited to the Deferred Bonus 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
Bonus 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. 
  
 7.2 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 VI (Designation of Beneficiaries) hereof. 
  

 14 

 7.3 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. This Plan shall not be construed in any way as an employment contract requiring the Company or
Participant to continue the employment relation. 
  
 7.4
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 rules, 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. 
  
 7.5 Adjustments for Changes in Capitalization.
The number of Share Units in the Participant’s Deferred Bonus 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. 
  
 7.6 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 Bonus Accounts prior to such amendment or termination,
without the written consent of the Participant. 
  
 7.7
Notices. To be effective, all notices, requests and demands to or upon the Company or the Participant, as the case may be, shall be in writing, by facsimile, by overnight courier or by registered or certified mail, postage prepaid and return
receipt requested, and shall be deemed to have been duly given or made upon: 
  
 (a) delivery by hand; 
  
 (b) one business day after being sent by overnight courier; 
  
 (c) four business days after being deposited in the United States mail, postage prepaid; or 
  
 (d) in the case of transmission by facsimile, when confirmation of receipt is obtained. 
  

 15 

 Such communications shall be addressed and directed as listed below (or to such other address or
recipient for a party as may be hereafter notified by such party hereunder), to the Company or the Participant, respectively: 
  
 If to the Company, to: 
  
 SUNOCO, INC. 
 Human Resources Department
– 14th Floor 
 1735 Market Street STE LL 
 Philadelphia, PA 19103-7583 
 Attn: Compensation Department 
 FAX:
(215) 246-8498 
 Confirm: (215) 246-8392 
  

If to Participant, to: 
  
 The most recent address for Participant appearing in the books and records of the Company. 
  
 7.8 Construction. The captions and headings used for the various Articles and Sections of this Plan are for
convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof. 
  
 7.9 Severability. In the case of 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.

  
 7.10 Governing Law. This Plan shall be construed in
accordance with and governed by the laws of the Commonwealth of Pennsylvania. 
  
 ARTICLE VIII 
  
 Cessation of Deferrals of Bonuses under the Incentive Plan Effective January 1, 2005 
  
 Notwithstanding any other provision of the Plan, no Executive Resource Employee may elect under Article III of the Plan to defer any portion of his or her
bonus paid after December 31, 2004 under the Incentive Plan and no deferrals may be made by the Committee pursuant to Article IV of the Plan with respect to any bonus paid under the Incentive Plan after December 31, 2004. It is intended
that all deferrals credited to Participants’ Deferred Bonus Accounts before January 1, 2005 (including all Dividend Equivalents and Interest Equivalents credited with respect to such deferrals) not be subject to IRC Section 409A, and
no action shall be taken that would constitute a material modification to a benefit or right under the Plan as existing on October 3, 2004, as set forth under Proposed Regulation 1.409A-6(a)(4), or such other guidance as may be applicable under
IRC Section 409A. 
  

 16Sunoco, Inc. Executive Involuntary Severance Plan

 Exhibit 10.3 

  
 SUNOCO, INC. 
  
 EXECUTIVE INVOLUNTARY SEVERANCE PLAN 
  

(Amended and Restated effective January 1, 2005) 
  

 Exhibit 10.3 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.1 “Benefit” or “Benefits” shall mean any or all of the benefits that a Participant is entitled to receive pursuant to Article IV of the Plan. 
  
 Section 1.2 “Board of Directors” shall mean the Board of Directors of Sunoco, Inc. or any successor thereto.

  
 Section 1.3 “Chief Executive Officer” shall
mean the individual serving as the Chief Executive Officer of Sunoco, Inc. as of the date of reference. 
  
 Section 1.4 “Committee” shall mean the administrative committee designated pursuant to Article VI of the Plan to administer the Plan in
accordance with its terms. 
  
 Section 1.5
“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 or liquidation or purchase of assets or stock or similar transaction. 
  
 Section 1.6 “Company Service” shall mean, for purposes of determining Benefits available to any Participant in this Plan, the total
aggregate recorded length of such Participant’s service with: Sunoco, Inc.; any subsidiary or affiliate of Sunoco, Inc. (whether by by merger, consolidation or liquidation or purchase of assets or stock or similar transaction) which has adopted
the Plan; and/or any corporation succeeding to the business of Sunoco, Inc. 
  
 Company Service shall commence with the Participant’s initial date of employment with the Company, and shall end with such Participant’s death, retirement, or termination for any reason. Company Service also
shall include: 
  
 (a) all periods of approved
leave of absence (civil, family, medical, military, or Olympic; provided, however, that the Participant returns to work within the prescribed time following the leave; 
  
 (b) any break in service of thirty (30) days or less; and 
  
 (c) any service credited under applicable Company policies
with respect to the length of a Participant’s employment by any non-affiliated entity that is subsequently acquired by, and becomes a part of, the Company’s operations. 
  
 Section 1.7 “Compensation Committee” shall mean the Compensation Committee of the Board of Directors.

 Section 1.8 “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. 
  

Section 1.9 “Employment Termination Date” shall mean the date on which the employment relationship between the Participant and the
Company is terminated. 
  
 Section 1.10 “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended. 
  
 Section 1.11 “Executive Resource Employee” shall mean any individual employed by the Company who has been designated by the Company as a member of the Company’s executive resources group.
Generally, such group shall include employees in Grades 14-20 and all employees subject to Section 16 of the Securities Exchange Act of 1934, as amended. 
  

Section 1.12 “Just Cause” shall mean: 
  
 (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), after a written demand for substantial performance is delivered to the Participant by the Board of Directors or the Chief Executive Officer that specifically
identifies the manner in which the Board of Directors or the Chief Executive Officer believes that the Participant has not substantially performed the Participant’s duties, or 
  
 (b) the willful engaging by the Participant in illegal conduct or gross misconduct that is materially and
demonstrably injurious to the Company. 
  
 For purposes of this Section 1.12,
no act, or failure to act, on the part of the Participant shall be considered “willful” unless it is done, or omitted to be done, by the Participant in bad faith or without reasonable belief that the Participant’s action or omission
was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the instructions of the Chief Executive Officer or a senior officer of the Company or based
upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Participant in good faith and in the best interests of the Company. The cessation of employment of the Participant shall not be
deemed to be for Just Cause unless and until there shall have been delivered to the Participant a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board of Directors (excluding
the Participant, if the Participant is a member of the Board of Directors) at a meeting of the Board of Directors (after reasonable notice is provided to the Participant and the Participant is given an opportunity, together with counsel for the
Participant, to be heard before the Board of Directors), finding that, in the good faith opinion 

  

 2 

 
of the Board of Directors, the Participant is guilty of the conduct described in Section 1.12(a) or 1.12(b), and specifying the particulars thereof in
detail. 
  
 Section 1.13 “Participant” shall mean
any Executive Resource Employee; provided, however, that any Executive Resource Employee who has an employment contract with the Company that provides severance benefits shall not be eligible to participate in the Plan while such contract is in
effect except to the extent specifically provided in the contract. 
  
 Section 1.14 “Plan” shall mean the Sunoco, Inc. Executive Involuntary Severance Plan, as set forth herein, and as the same may from time to time be amended. 
  
 Section 1.15 “Plan Year” shall mean each fiscal year of the Company during which this Plan is in effect.

  
 Section 1.16 “Salary Continuation Period” shall
mean: 
  
 (a) six (6) weeks, in the case of
a Participant who either has not executed the release described in Section 3.3 hereof, or who has revoked such a previously executed release; or 
  
 (b) in the case of a Participant that has executed and not revoked the release described in Section 3.3 hereof: 
  
 (1) one-hundred-four (104) weeks for the Company’s
Chief Executive Officer, Chief Operating Officer, and any executive vice president; 
  
 (2) seventy-eight (78) weeks for each other Executive Resource Employee in Grade 17 or above; and 
  
 (3) fifty-two (52) weeks for each other Executive
Resource Employee. 
  
 Section 1.17 “Weekly
Compensation” shall mean the sum of each of the following items divided by 52: 
  
 (a) a Participant’s annual base salary; and 
  

(b) the applicable guideline (target) annual bonus amount in effect on his or her Employment Termination Date. 
  
 ARTICLE II 
  
 BACKGROUND, PURPOSE AND TERM OF PLAN 
  
 Section 2.1 Background. The Company maintains this Plan for the purpose of providing severance allowances to all
Executive Resource Employees, whose employment is terminated for reasons other than fault of their own. The Plan shall be effective as of December 7, 2000. 
  

 3 

 Section 2.2 Purpose of the Plan. In recognition of their past service to the Company, this
Plan is intended to alleviate, in part or in full, financial hardships which may be experienced by certain of those employees of the Company whose employment is terminated. In essence, benefits under the Plan are intended to be additional
compensation for past services or the continuation of the specified fringe benefits for a transitional period. The amount or kind of benefit to be provided is to be based on the position of the Executive Resource Employee, the Executive Resource
Employee’s compensation and the fringe benefit programs applicable to him or her, at his or her Employment Termination Date. The Plan is not intended to be included in the definitions of “employee pension benefit plan” and
“pension plan” as set forth under Section 3(2) of ERISA. Rather, this Plan is intended to meet the descriptive requirements of a plan constituting a “severance pay plan” within the meaning regulations published by the
Secretary of Labor at Title 29, Code of Federal Regulations, § 2510.3-2(b). 
  
 Section 2.3 Term of the Plan. The Plan will continue until such time as the Board of Directors, or a committee thereof, delegated such responsibility, acting in its sole discretion, elects to modify,
supersede or terminate it in accordance with the further provisions hereof. 
  
 ARTICLE III 
  
 PARTICIPATION
AND ELIGIBILITY FOR BENEFITS 
  
 Section 3.1 General
Eligibility Requirement. In order to receive a Benefit under this Plan, a Participant’s employment must have been terminated by the Company other than for Just Cause, death or Disability; provided, however, that any
Participant who is receiving benefits under the Sunoco, Inc. Special Executive Severance Plan shall not also be eligible to receive any Benefit under this Plan. 
  

Section 3.2 Employment by Successor. Notwithstanding anything herein to the contrary, no Benefits shall be due hereunder in connection with
the sale or other disposition by the Company of the capital stock or assets of any business unit, division, subsidiary, or other affiliate, if the Participant receives an offer of employment from the purchaser or other acquiror at a combined annual
salary and guideline bonus at least equal to the annual salary and guideline bonus for his or her position with the Company immediately prior to such sale or other disposition. 
  
 Section 3.3 Release. Unless the Participant executes a full waiver and release of claims in a form satisfactory
to the Company, and notwithstanding anything herein to the contrary as provided in Section 5.2, the Benefits provided hereunder in connection with a termination of employment shall be provided only for the Salary Continuation Period set forth
in 

  

 4 

 
Section 1.16(a) of this Plan, and the special medical benefit described in Section 4.4 of this Plan shall not be provided. In no event shall the
release described in this Section 3.3 impair the ability of a Participant who executes such a release to pursue any rights the Participant may have with respect to benefits pursuant to the Sunoco, Inc. Special Executive Severance Plan.

  
 ARTICLE IV 
  
 BENEFIT 
  
 Section 4.1 Amount of Immediate Cash Benefit. The immediate cash amount to be paid to a Participant eligible to
receive Benefits under Section 3.1 hereof shall be paid in a lump sum and shall equal the Participant’s earned vacation (as determined under the Company’s applicable vacation policy as in effect on the Employment Termination Date)
through the end of his or her Employment Termination Date. 
  
 Section 4.2 Salary Continuation. A Participant who is eligible to receive Benefits under Section 3.1 shall continue to be entitled, through the end of his/her Salary Continuation Period to his/her Weekly Compensation as in
effect on the Employment Termination Date. 
  
 Section 4.3
Executive Benefits. A Participant who is eligible to receive Benefits under Section 3.1 shall continue to be entitled, through the end of his/her Salary Continuation Period to those employee benefits listed below: 
  
 (a) death benefits as follows: 
  
 (1) for Participants who became Executive Resource Employees
on or after January 1, 1985, an amount equal to one (1) times annual base salary at the Employment Termination Date; and 
  
 (2) for Participants who became Executive Resource Employees before January 1, 1985, an amount equal to two (2) times the sum of
annual base salary and guideline bonus at the Employment Termination Date; 
  
 Any supplemental coverages elected under the Sunoco, Inc. Death Benefits Plan (or any similar plan of any of the following: a subsidiary or affiliate which has adopted this Plan; a corporation succeeding to the
business of Sunoco, Inc.; and/or any subsidiary or affiliate, by merger, consolidation or liquidation or purchase of assets or stock or similar transaction) will be discontinued under the terms of such plan or plans; and 
  
 (b) medical plan benefits (excluding dental coverage),
including COBRA continuation coverage beginning as of the start of the Salary Continuation Period and running concurrently therewith. 
  

 5 

 In each case, when contributions are required of all other active Executive Resource Employees at the
time of the Participant’s Employment Termination Date, or thereafter, if required of other Executive Resource Employees, the Participant shall continue to be responsible for making the required contributions during the Salary Continuation
Period in order to be eligible for the coverage. The Participant also shall be entitled to such outplacement services as deemed appropriate by the Committee. 
  
 Section 4.4 Special Medical Benefit. Participants who have executed and not revoked the release described in Section 3.3 hereof, and who
are fifty (50) or more years of age on the Employment Termination date, with a minimum of ten (10) years of Company Service shall have medical (but not dental) benefits available under the same terms and conditions as other employees not
yet eligible for Medicare coverage who retire under the terms of a Company retirement plan. Subject to modification or termination of such medical benefits as generally provided to other employees not yet eligible for Medicare coverage who retire
under the terms of a Company retirement plan, such benefits may continue until such time as the Participant becomes first eligible for Medicare, or the Participant voluntarily cancels coverage, whichever is earliest. 
  
 Section 4.5 Retirement Plans. This Plan shall not govern and
shall in no way affect the Participant’s interest in, or entitlement to benefits under, any of the Company’s qualified or supplemental retirement plans and any payments received under any such plan shall not affect a Participant’s
right to any Benefit hereunder. 
  
 Section 4.6 Minimum
Benefit. Notwithstanding the provisions of Sections 4.2, 4.3 and 4.4 hereof, the Benefits available under this Plan shall not be less than those determined in accordance with the provisions of the Sunoco, Inc. Involuntary Termination Plan. If
the Participant determines that the benefits under the Sunoco, Inc. Involuntary Termination Plan are more valuable to the Participant than the comparable Benefits set forth in this Plan, then the provisions used to calculate the Benefits available
to the Participant under this Plan shall not apply, and the Benefits available to the Participant under this Plan shall be calculated using only the applicable provisions of the Sunoco, Inc. Involuntary Termination Plan. 
  
 Section 4.7 Effect on Other Benefits. There shall not be drawn
from the continued provision by the Company of any of the aforementioned Benefits any implication of continued employment or of continued right to accrual of retirement benefits under the Company’s qualified or supplemental retirement plans,
nor shall a Participant accrue vacation days, paid holidays, paid sick days or other similar benefits normally associated with employment for any part of the Salary Continuation Period during which benefits are payable under this Plan. 

 

 6 

 ARTICLE V 
  
 METHOD AND DURATION OF BENEFIT PAYMENTS 
  
 Section 5.1 Method of Payment. 
  
 (a) The cash Benefits to which a Participant is entitled, as determined pursuant to Article IV hereof, shall be paid monthly except as
otherwise provided in this Article V. Payment shall be made by mailing to the last address provided by the Participant to the Company, or by direct deposit into a bank account designated by the Participant in writing to the Company. 
  
 (b) Payment of any cash Benefits (that are deferred
compensation for purposes of IRC Section 409A) to any Participant who is a specified employee as defined in IRC Section 409A and the regulations promulgated thereunder shall be made as follows. Cash Benefits that are scheduled to be paid
for the period which begins on such Participant’s separation from service as defined in IRC Section 409A and the regulations promulgated thereunder and ends on the date six months from such Participant’s separation from service, shall
not be paid as scheduled, but shall be accumulated and paid in a lump sum on the date six months after the Participant’s separation from service. Simple interest will be paid on cash Benefits delayed hereunder from the date such payments would
have been made to the Participant but for this subsection (b), to the date of actual payment, at the interest rate used to determine lump sum payments under the Sunoco, Inc. Retirement Plan as of the date of the Participant’s separation from
service. 
  
 Section 5.2 Conditions to Entitlement to
Benefit. In order to be eligible to receive full Benefits hereunder, a Participant shall make himself/herself available to the Company and cooperate in any reasonable manner (so as not to unreasonably interfere with subsequent employment) in
providing assistance to the Company after his or her Employment Termination Date in conducting any matters which are pending at such time, and, as provided in Section 3.3, shall execute a release and discharge of the Company from any and all
claims, demands or causes of action other than as to amounts or benefits due to the Participant under any plan, program or contract provided by, or entered into with, the Company. Such release and discharge shall be in such form as is prescribed by
the Committee and shall be executed prior to the payment of any Benefits due hereunder. In addition, no Benefits due hereunder shall be paid to a Participant who is required by Company guidelines to execute an agreement governing the assignment of
patents or the disclosure of confidential information unless an executed copy of such agreement is on file with the Company. 
  

 7 

 Section 5.3 Payments to Beneficiary(ies). Each Executive Resource Employee shall designate a
beneficiary(ies) to receive any Benefits due hereunder in the event of the Participant’s death prior to the receipt of all such Benefits. Such beneficiary designation shall be made in the manner, and at the time, prescribed by the Committee in
its sole discretion. In the absence of an effective beneficiary designation hereunder, the Participant’s estate shall be deemed to be his or her designated beneficiary. 
  
 Section 5.4 Benefit Payments Commencing Between January 1, 2005 and June 30, 2005. In accordance with
the transition guidance set forth in Section 20(a) of IRS Notice 2005-1, a Participant who commences receipt of Benefits under the Plan during the period January 1, 2005 through June 30, 2005, shall have the right to elect, in the
form and manner prescribed by the Committee, to terminate his or her participation in the Plan, in whole or in part, provided that the Benefits subject to such termination shall be distributed to the Participant no later than December 31, 2005.

  
 ARTICLE VI 
  
 ADMINISTRATION 
  
 Section 6.1 Appointment of the Committee. The Committee shall
consist of three (3) or more persons appointed by the Compensation Committee. Committee members may be, but need not be, employees of the Company. 
  
 Section 6.2 Tenure of the Committee. Committee members shall serve at the pleasure of the Compensation Committee and may be discharged, with
or without Cause, by the Compensation Committee. Committee members may resign at any time on ten (10) days’ written notice. 
  
 Section 6.3 Authority and Duties. It shall be the duty of the Committee, on the basis of information supplied to it by the Company, to
determine the eligibility of each Participant for Benefits under the Plan, to determine the amount of Benefit to which each such Participant may be entitled, and to determine the manner and time of payment of the Benefit consistent with the
provisions hereof. In addition, the exercise of discretion by the Committee need not be uniformly applied to similarly situated Participants. The Company shall make such payments as are certified to it by the Committee to be due to Participants. The
Committee shall have the full power and authority to construe, interpret and administer the Plan, to correct deficiencies therein, to supply omissions and to make factual determinations. All decisions, actions and interpretations of the Committee
shall be final, binding and conclusive upon the parties. 
  

 8 

 Section 6.4 Action by the Committee. A majority of the members of the Committee shall
constitute a quorum for the transaction of business at a meeting of the Committee. Any action of the Committee may be taken upon the affirmative vote of a majority of the members of the Committee at a meeting, or at the direction of the Chairperson,
without a meeting by mail, telegraph, telephone or electronic communication device; provided that all of the members of the Committee are informed of their right to vote on the matter before the Committee and of the outcome of the vote thereon.

  
 Section 6.5 Officers of the Committee. The
Compensation Committee shall designate one of the members of the Committee to serve as Chairperson thereof. The Compensation Committee shall also designate a person to serve as Secretary of the Committee, which person may be, but need not be, a
member of the Committee. 
  
 Section 6.6 Compensation of
the Committee. Members of the Committee shall receive no compensation for their services as such. However, all reasonable expenses of the Committee shall be paid or reimbursed by the Company upon proper documentation. The Company shall indemnify
members of the Committee against personal liability for actions taken in good faith in the discharge of their respective duties as members of the Committee and shall provide coverage to them under the Company’s liability insurance program(s).

  
 Section 6.7 Records, Reporting and Disclosure. The
Committee shall keep all individual and group records relating to Participants and former Participants and all other records necessary for the proper operation of the Plan. Such records shall be made available to the Company and to each Participant
for examination during business hours except that a Participant shall examine only such records as pertain exclusively to the examining Participant and to the Plan. The Committee shall prepare and shall file as required by law or regulation all
reports, forms, documents and other items required by ERISA, the Internal Revenue Code, and every other relevant statute, each as amended, and all regulations thereunder (except that the Company, as payor of the Benefits, shall prepare and
distribute to the proper recipients all forms relating to withholding of income or wage taxes, Social Security taxes, and other amounts which may be similarly reportable). 
  
 Section 6.8 Actions of the Chief Executive Officer. Whenever a determination is required of the Chief Executive
Officer under the Plan, such determination shall be made solely at the discretion of the Chief Executive Officer. In addition, the exercise of discretion by the Chief Executive Officer need not be uniformly applied to similarly situated Participants
and shall be final and binding on each Participant or beneficiary(ies) to whom the determination is directed. 
  

 9 

 Section 6.9 Bonding. The Committee shall arrange any bonding that may be required by law, but
no amount in excess of the amount required by law (if any) shall be required by the Plan. 
  
 ARTICLE VII 
  
 AMENDMENT AND
TERMINATION 
  
 Section 7.1 Amendment, Suspension and
Termination. The Company, acting by or pursuant to a resolution of the Board of Directors, or a committee thereof delegated such responsibility, retains the right, at any time and from time to time, to amend, suspend or terminate the Plan in
whole or in part, for any reason, and without either the consent of or the prior notification to any Participant. No such amendment shall give the Company the right to recover any amount paid to a Participant prior to the date of such amendment or
to cause the cessation and discontinuance of payments of Benefits to any person or persons under the Plan already receiving Benefits. No action to amend or modify the Plan that is taken after a Change in Control (as such term is defined in the
Special Executive Severance Plan of the Company) or before, but in connection with, a Change in Control, may terminate or reduce the rights of an Employee as of the date of such action with respect to the Special Executive Severance Plan or
Section 3.3. 
  
 ARTICLE VIII 
  
 DUTIES OF THE COMPANY 
  
 Section 8.1 Records. The Company shall supply to the Committee
all records and information necessary to the performance of the Committee’s duties. 
  
 Section 8.2 Payment. The Company shall make payments from its general assets to Participants, and shall provide the Benefits described in Article IV hereof in accordance with the terms of this Plan, as
directed by the Committee. 
  
 ARTICLE IX 
  
 CLAIMS PROCEDURES 
  
 Section 9.1 Application for Benefits. Benefits shall be paid by
the Company following a termination of employment that qualifies the Participant for Benefits. In the event a Participant believes himself/herself eligible for Benefits under this Plan and Benefit payments have not been initiated by the Company, the
Participant may apply for such Benefits by requesting payment of Benefits in writing from the Company. 
  
 Section 9.2 Appeals of Denied Claims for Benefits. In the event that any claim for benefits is denied in whole or in part, the Participant (or
beneficiary, if applicable) whose claim has been so denied shall be notified of such denial in writing by the Committee, within thirty (30)

  

 10 

 
days following submission by the Participant (or beneficiary, if applicable) of such claim to the Committee. The notice advising of the denial shall specify
the reason or reasons for denial, make specific reference to pertinent Plan provisions, describe any additional material or information necessary for the claimant to perfect the claim (explaining why such material or information is needed), and
shall advise the Participant of the procedure for the appeal of such denial. All appeals shall be made by the following procedure: 
  
 (a) The Participant whose claim has been denied shall file with the Committee a notice of desire to appeal the denial. Such notice shall
be filed within sixty (60) days of notification by the Committee of the claim denial, shall be made in writing, and shall set forth all of the facts upon which the appeal is based. Appeals not timely filed shall be barred. 
  
 (b) The Committee shall, within thirty (30) days of
receipt of the Participant’s notice of appeal, establish a hearing date on which the Participant may make an oral presentation to the Committee in support of his/her appeal. The Participant shall be given not less than ten (10) days’
notice of the date set for the hearing. 
  
 (c)
The Committee shall consider the merits of the claimant’s written and oral presentations, the merits of any facts or evidence in support of the denial of benefits, and such other facts and circumstances as the Committee shall deem relevant. If
the claimant elects not to make an oral presentation, such election shall not be deemed adverse to his/her interest, and the Committee shall proceed as set forth below as though an oral presentation of the contents of the claimant’s written
presentation had been made. 
  
 (d) The Committee
shall render a determination upon the appealed claim, within sixty (60) days of the hearing date, which determination shall be accompanied by a written statement as to the reasons therefor. The determination so rendered shall be binding upon
all parties. 
  
 ARTICLE X 
  
 MISCELLANEOUS 
  
 Section 10.1 Nonalienation of Benefits. None of the payments,
benefits or rights of any Participant shall be subject to any claim of any creditor, and, in particular, to the fullest extent permitted by law, all such payments, benefits and rights shall be free from attachment, garnishment, trustee’s
process, or any other legal or equitable process available to any creditor of such Participant. No Participant shall have the right to alienate, anticipate, commute, pledge, encumber or assign any of the benefits or payments which he/she may expect
to receive, contingently or otherwise, under this Plan. 
  

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 Section 10.2 No Contract of Employment. Neither the establishment of the Plan, nor any
modification thereof, nor the creation of any fund, trust or account, nor the payment of any benefits shall be construed as giving any Participant, or any person whosoever, the right to be retained in the service of the Company, and all Participants
shall remain subject to discharge to the same extent as if the Plan had never been adopted. 
  
 Section 10.3 Severability of Provisions. If any provision of this Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and this
Plan shall be construed and enforced as if such provisions had not been included. 
  
 Section 10.4 Successors, Heirs, Assigns, and Personal Representatives. This Plan shall be binding upon the heirs, executors, administrators, successors and assigns of the parties, including each
Participant, present and future. Unless the Chief Executive Officer directs otherwise, the Company shall require any successor or successors (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company, or a division thereof, to acknowledge expressly that this Agreement is binding upon and enforceable against the Company in accordance with the terms hereof, and to become jointly and severally obligated
with the Company to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession or successions had taken place. 
  
 Section 10.5 Headings and Captions. The headings and captions herein are provided for reference and convenience
only, shall not be considered part of the Plan, and shall not be employed in the construction of the Plan. 
  
 Section 10.6 Gender and Number. Except where otherwise clearly indicated by context, the masculine and the neuter shall include the feminine
and the neuter, the singular shall include the plural, and vice-versa. 
  
 Section 10.7 Unfunded Plan. The Plan shall not be funded. The Company may, but shall not be required to, set aside or earmark an amount necessary to provide the Benefits specified herein (including the establishment of trusts).
In any event, no Participant shall have any right to, or interest in, any assets of the Company which may be applied by the Company to the payment of Benefits. 
  

Section 10.8 Payments to Incompetent Persons, Etc. Any benefit payable to or for the benefit of a minor, an incompetent person or other
person incapable of receipting therefor shall be deemed paid when paid to such person’s guardian or to the party providing or reasonably appearing to provide for the care of such person, and such payment shall fully discharge the Company, the
Committee and all other parties with respect thereto. 
  

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 Section 10.9 Lost Payees. A Benefit shall be deemed forfeited if the Committee is unable to
locate a Participant to whom a Benefit is due. Such Benefit shall be reinstated if application is made by the Participant for the forfeited Benefit while this Plan is in operation. 
  
 Section 10.10 Controlling Law. This Plan shall be construed and enforced according to the laws of the
Commonwealth of Pennsylvania to the extent not preempted by Federal law. 
  

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