Document:

Employment Letter

 Exhibit 10.39 

 
 

 
 Edward Russ 

Dear Ted, 
 We are pleased to present the
following offer of employment. This letter will summarize and confirm the details of our offer to you of continued employment by Lighting Science Group Corporation (the “Company”), and will replace the prior letter agreement you entered
into with the Company on December 28, 2009. 
 Effective Date. This letter will become effective on February 10,
2011. 
 Position, Responsibilities & Duties Your job title will be Chief Business Development Officer. You will
initially report to the Chief Executive Officer. Your responsibilities and duties will be as the Chief Executive Officer may specify. You are expected to devote your full time professional efforts to the fulfillment of your responsibilities and
duties. 
 Base Compensation Your monthly salary will be sixteen thousand six hundred and sixty six United States dollars
and sixty six cents (US$16,666.66) (annualized, $200,000), less standard payroll deductions and all required withholdings, and will be paid in accordance with the Company’s payroll policies. 

Car Allowance: The Company shall pay you or reimburse you a car allowance of six hundred (US$600.00) per month. The car allowance shall
cease immediately upon the termination of your employment by the Company. 
 Performance Bonus: You will be eligible to
participate in the Company’s performance bonus plan(s) up to a percentage of your base salary per fiscal year determined by the Company, based on a combination of company performance and personal achievements as determined by your manager each
fiscal year. 
 Long Term Incentive Plan: You will be eligible to participate in the Company’s long term incentive
plan. 
 Benefits: The Company currently offers a suite of benefits for you and your qualified dependents including
medical, dental, vision and life insurance options, subject to the terms and conditions of each program. Additionally, you are eligible for paid sick time off and paid holidays to be taken in accordance with the Company’s policies. You will
initially be eligible to accrue twenty (20) days of paid vacation per year of employment in accordance with the Company’s vacation policies. Additional details regarding benefits will be provided from Human Resources. The Company’s
retains the right to modify, amend or terminate its employee benefit plans and programs at any time. 
 Required
Documentation: To comply with the government-mandated confirmation of employment eligibility you may be required to complete an I-9 Employment Eligibility Verification form. 

At Will Employment: Please understand the Company is an employment-at-will company. This means that you or the Company may
terminate your employment at any time, for any reason or for no reason, with or without notice. Accordingly, this letter is not a contract or commitment for continued employment. The Company also reserves the right to amend its benefits, plans or
programs at any time. 

  
 Lighting
Science Group Corporation — www.lsgc.com 
  

					
	         California

                11390 Sunrise Gold Circle, Suite
800        

North America        Rancho Cordova, CA 95742     
   Australia
          v
916.852.1719
          f 916.852.1740

 
	  	 	  	 Florida  

1227 S. Patrick Drive, BLDG. 2A  
 Asia        Satellite Beach, Florida 32937        Europe

v 321.779.5520   
 f 321.779.5521   

 

 
  

 Severance. If your employment by the Company is terminated
for “Cause”, you will not be entitled to severance pay and your options will immediately be forfeited and terminate. If your employment is terminated for other than Cause or if you resign for Good Reason, you will be entitled to a
severance payment equal to twelve (12) months of your base pay, payable in equal installments over twelve (12) months in accordance with the Company’s payroll practices, provided that the payments due within the first sixty
(60) days after termination shall be accrued and paid on the sixtieth (60th) day following your termination. The severance benefit described in this paragraph is conditioned upon your executing and returning within 45 days immediately after your termination (and not
revoking) a valid waiver and release of all claims that you may have against the Company, in a form provided by the Company. 

“Cause” means your: (a) misrepresentation of your education or work experience or any matter upon which the Company relied
in considering and offering you employment; (b) willful breach of your employment obligations, which, if curable, you fail to cure within thirty (30) days after receipt of a written notice of such breach; (c) gross negligence or
recklessness in the performance or intentional non-performance of your material duties to the Company; (d) commission of a felony or a crime of moral turpitude; (e) commission of a material act of deceit, fraud, perjury or embezzlement
that involves or directly or indirectly causes harm to the Company or any of its affiliates; or (f) repeatedly (i.e., on more than one occasion) being under the influence of drugs or alcohol (other than over-the-counter or prescription medicine
or other medically-related drugs to the extent they are taken in accordance with their directions or under the supervision of a physician) during the performance of your duties for the Company, or, while under the influence of such drugs or alcohol,
engaging in grossly inappropriate conduct during the performance of your duties for the Company. 
 “Good Reason” means
the occurrence, without your prior written consent, of any of the following events: (a) any material breach by the Company of its obligations under this Agreement; (b) a reduction in your base salary (other than a reduction made in
connection with an across-the-board proportionate reduction in the base salaries of all employees of the Company with a position of director or above that is no more than 10% of base salary); (c) a material reduction by the Company in the kind
or level of employee benefits to which you are entitled immediately prior to such reduction (other than a reduction generally applicable to all executive level employees of the Company that, in combination with any reduction in base salary, does not
reduce your total compensation by more than 10%); or (d) a material reduction by the Company of your duties and level of responsibilities; provided, that any such event described in (a) through (d) above will not constitute Good
Reason unless you deliver to the Company a written notice of termination for Good Reason within ninety (90) days after you first learn of the existence of the circumstances giving rise to Good Reason, and within thirty (30) days following
the delivery of such notice the Company has failed to cure the circumstances giving rise to Good Reason. 

Change in Control. If, within two (2) years after a Change in Control, your employment is terminated by
the Company or its successor without Cause or you resign for Good Reason, then, in lieu of the severance benefit set forth above, you will be entitled to a severance payment equal to twenty-four (24) months of your base pay, payable in equal
installments over twenty-four (24) months in accordance with the Company’s payroll practices: provided that the payments due within the first sixty (60) days after your termination shall be accrued and paid on the sixtieth (60th ) day following termination. The severance benefit described in this
paragraph is conditioned upon your executing and returning within 45 days immediately after your termination (and not revoking) a valid waiver and release of all claims that you may have against the Company, in a form provided by the Company.

 “Change in Control” will have the meaning given to such term in the Lighting Science Group Corporation Amended and
Restated Equity-Based Compensation Plan, or any successor thereto. 

  
 Lighting
Science Group Corporation — www.lsgc.com 
  

					
	         California

                11390 Sunrise Gold Circle, Suite
800        

North America        Rancho Cordova, CA 95742     
   Australia
          v
916.852.1719
          f 916.852.1740

 
	  	 	  	 Florida  

1227 S. Patrick Drive, BLDG. 2A  
 Asia        Satellite Beach, Florida 32937        Europe

v 321.779.5520   
 f 321.779.5521   

 

 
  

 Resignation Notice. In the event you elect to discontinue your employment by the
Company, you shall give the Company notice of at least four (4) weeks. The Company may elect to shorten or waive the four (4) week period. During such notice period, your salary and benefits in effect at the time of such notice shall
remain in effect. Notwithstanding the foregoing, the Company retains the option of terminating your employment upon such notice or before the end of the notice period. If you elect to discontinue your employment by the Company and even if the
Company terminates your employment prior to the end of the notice period, you will not be eligible for a severance payment. 

Additional Terms & Conditions of Employment. You will be required to comply with the additional terms and conditions of
employment attached hereto as Exhibit A concerning, among other things, confidentiality, assignment of inventions and works of authorship, non-competition, and non-recruitment. 
 Application of Section 409A. Each payment under this agreement is intended to be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) or in
compliance with Section 409A, and the provisions of this letter will be administered, interpreted and construed accordingly. Without limiting the generality of the foregoing, the term “termination” of employment or any similar term
used herein will be interpreted to mean “separation from service” within the meaning of Section 409A to the extent necessary to comply with Section 409A. In addition, notwithstanding any provision of this letter to the contrary,
any payment that is subject to the six-month delay under Section 409A(a)(2)(B) of the Internal Revenue Code for a “specified employee”, if applicable, shall not be paid or commence until the earliest of: (i) the first day of the
seventh month after your date of termination, (ii) the date of your death, or (iii) such earlier date as complies with the requirements of Section 409A. Each payment hereunder subject to Section 409A shall be considered a
separate payment for purposes thereof. 
 If you wish to accept continued employment under the terms described above, please sign and date this
letter and exhibit and return to me. 
 By signing this letter, you acknowledge that this offer letter supersedes any other offer, agreement or
promises made by anyone, specifically concerning the offer of employment by the Company, and this letter comprises the complete agreement between you and the Company concerning the offer of employment by the Company. 

If you have any questions regarding this offer, please do not hesitate to contact me. Questions concerning the Company’s benefit plans may be
directed to Bruce Krangel. 
 I look forward to your favorable reply and to a productive and enjoyable work relationship. 

 

	
	 Sincerely yours,

	
	 /s/ Richard Weinberg

	 Richard Weinberg

	 Interim Chief Executive Officer

 ********************* 

  
 Lighting
Science Group Corporation — www.lsgc.com 
  

					
	         California

                11390 Sunrise Gold Circle, Suite
800        

North America        Rancho Cordova, CA 95742     
   Australia
          v
916.852.1719
          f 916.852.1740

 
	  	 	  	 Florida  

1227 S. Patrick Drive, BLDG. 2A  
 Asia        Satellite Beach, Florida 32937        Europe

v 321.779.5520   
 f 321.779.5521   

 

 
  

 I understand and accept the conditions of this letter and attachments. My acceptance also represents
that I am not bound by any other agreements that would prohibit me from fulfilling the roles and responsibilities of Chief Business Development Officer with Lighting Science Group Corporation. I understand that my employment is subject to and
contingent upon my execution of the agreement attached to this letter as Exhibit A. 
 AGREED TO AND ACCEPTED BY: 

 

	
	 /s/ Edward Russ

	Signed: Edward Russ
	
	 3/7/2011

	Date

  
 Lighting
Science Group Corporation — www.lsgc.com 
  

					
	         California

                11390 Sunrise Gold Circle, Suite
800        

North America        Rancho Cordova, CA 95742     
   Australia
          v
916.852.1719
          f 916.852.1740

 
	  	 	  	 Florida  

1227 S. Patrick Drive, BLDG. 2A  
 Asia        Satellite Beach, Florida 32937        Europe

v 321.779.5520   
 f 321.779.5521   

 

 
  

 EXHIBIT A 
 Employment Terms & Conditions 
 Employee: Edward Russ 

As a condition of “Employee” identified above being employed by Lighting Science Group Corporation and/or any of its
subsidiaries, affiliates (including TriNet), successors or assigns (collectively “LSG”) and in consideration of Employee’s employment by LSG and the receipt of compensation now and hereafter paid to Employee by LSG, Employee
acknowledges and agrees to these Employment Terms & Conditions (these “Terms & Conditions”). 
 1.
Application. Employee agrees to read and comply with these Terms and Conditions. 
 2. Other Terms &
Conditions. These Terms & Conditions supplement any provisions in any offer of employment letter addressed to Employee, formal written employment agreement between Employee and LSG, and any and all LSG company policies. These
Terms & Conditions do not supersede any conflicting term in any offer of employment letter addressed to Employee, formal written employment agreement between Employee and LSG, or LSG company policies. 

3. At-Will Employment. Employee acknowledges and agrees that Employee’s employment by LSG is for an unspecified duration and
constitutes “at-will employment.” Employee acknowledges that there is no agreement, express or implied, between Employee and LSG for any specific period of employment, nor for continuing or long-term employment. LSG and Employee each have
the right to terminate Employee’s employment at any time, with or without cause, for any reason or no reason, and with or without following any particular policy or procedure. 

4. Confidential Information. In connection with Employee’s employment by LSG, LSG will disclose to Employee “Confidential
Information.” 
 a. Definition. Confidential Information includes, but is not limited to, information relating to the
intellectual property and business practices of LSG whether or not reduced to writing or other tangible medium of expression, whether or not patented, patentable, capable of trade secret protection, or protected by copyright. Confidential
Information also includes comparable information that LSG may receive or has received from others who do business with LSG. Intellectual property includes, but is not limited to, information relating to research and development, inventions,
discoveries, improvements, methods and processes, know-how, compositions, works, concepts, designs, ideas, prototypes, models, samples, writings, notes, and patent applications. Business practices includes, but is not limited to, information
relating to intellectual property, business plans, financial information, products, services, manufacturing processes and methods, costs, sources of supply, marketing plans, advertising plans, customer lists, sales, profits, pricing methods,
personnel, and business relationships. 
 b. Exceptions. Confidential Information does not include information that was
already known to Employee prior to Employee’s contact with LSG as established by written records, information which becomes generally available to the public other than as a result of a breach of these Terms & Conditions, or
information which is furnished to Employee by a third party who is lawfully in possession of such information and who lawfully conveys that information. 

  
 Lighting
Science Group Corporation — www.lsgc.com 
  

					
	         California

        11390 Sunrise Gold Circle, Suite 800

        Rancho Cordova, CA 95742

North America        v
916.852.1719        Australia

         f 916.852.1740

 
	  	 	  	 Florida

1227 S. Patrick Drive, BLDG. 2A
 Satellite Beach, Florida 32937

Asia        v
321.779.5520        Europe
 f
321.779.5521   

 

 
  

 c. Restrictions. During and after employment with LSG (regardless of whether
Employee or LSG terminates the employment relationship and regardless of the reasons for the termination), Employee shall protect the Confidential Information of LSG and Employee shall not, except in the normal and proper course of performing their
employment duties and responsibilities: (i) use, (ii) disclose, (iii) copy or (iv) allow access to Confidential Information of LSG without the prior written approval of an officer of LSG. Employee acknowledges and agrees that
this obligation with regard to the Confidential Information of LSG herein shall continue until such time as one of the exceptions identified hereinabove applies to the subject matter in question. 

d. No Waiver of Other Protections. The restrictions set forth in this Section 4 are in addition to, not in lieu of, any
protections afforded to trade secrets, confidential information or proprietary information under any common law or statute, and nothing in this Section will be deemed to waive or limit LSG’s rights or remedies under any such law or statute.

 5. Return of Property. Upon the completion or termination of Employee’s employment (regardless of whether Employee
or LSG terminates the employment relationship and regardless of the reasons for the termination), or at any other time when requested, Employee (a) shall promptly return all property of LSG, including but not limited to all Confidential
Information and all copies thereof, and all of LSG’s equipment, and (b) shall immediately notify LSG if any electronic copies of LSG documents, including but not limited to Confidential Information, are contained on or within a computer,
PDA, email account, or other electronic storage media owned by Employee, and further, will take all steps requested by LSG to permanently delete or destroy such copies and verify that the copies have been deleted or destroyed in a manner acceptable
to LSG. 
 6. Ownership Of Developments. All intellectual property conceived, made, created, developed or reduced to
practice (whether alone or with others, whether or not during normal business hours and whether or not on the premises of one of the parties) by Employee in the course of Employee’s employment or that results from, or is suggested by, work done
in the course of Employee’s employment shall be the property of LSG. Such intellectual property shall be referred to hereinafter as subject intellectual property. Subject intellectual property shall be considered Confidential Information.

 7. Disclosure Of Subject Intellectual Property. Employee shall maintain throughout the term of Employee’s
employment up-to-date records of, and promptly and fully disclose to LSG, all subject intellectual property developed by Employee. 
 8. Assignment. Employee hereby assigns and agrees to assign to LSG, or its designee, full right, title and interest in and to all subject intellectual property. Employee agrees that, during the
term of these Terms & Conditions and subsequent to the completion or termination of these Terms & Conditions, Employee will, at LSG’s request and expense, execute all applications for United States and foreign patents, trademarks,
copyrights, or other rights, and will otherwise provide assistance (including but not limited to the execution and delivery of instruments of further assurance or confirmation) to assign subject intellectual property to LSG and to permit LSG to
enforce any patents, trademarks, copyrights, or other rights in and to subject intellectual property. Employee agrees not to file any patent, trademark, or copyright applications relating to subject intellectual property. All copyrightable works
that Employee creates shall be considered “works made for hire” as defined by the copyright laws of the United States. 

9. Third Party Confidential Information Warranty. Employee represents and warrants that Employee has not and will not disclose to
LSG any confidential or proprietary information belonging to a third party (including but not limited to prior employers) unless written authorization from the third party is first obtained in form and substance satisfactory to LSG. 

  
 Lighting
Science Group Corporation — www.lsgc.com 
  

					
	         California

        11390 Sunrise Gold Circle, Suite 800

        Rancho Cordova, CA 95742

North America        v
916.852.1719        Australia

         f 916.852.1740

 
	  	 	  	 Florida

1227 S. Patrick Drive, BLDG. 2A
 Satellite Beach, Florida 32937

Asia        v
321.779.5520        Europe
 f
321.779.5521   

 

 
  

 10. Public Speaking. If Employee is requested by a third party or Employee
initiates any opportunity to speak publicly concerning LSG, Employee’s work, the LED lighting industry, or any other topic that relates to the business of LSG, Employee shall obtain the prior written consent of the Chief Executive Officer
before such public speaking event. 
 11. Proper Use Of LSG Equipment. LSG’s computers, messaging devices such as the
BlackBerry, telephones, cellular telephones, smart cellular telephones, cellular data cards, and computer and telephone networks (collectively “LSG’s Equipment”) are to be used to conduct the business of LSG. Incidental personal use
of LSG’s Equipment is permitted as long as such personal use is not illegal, does not interfere with the conduct of LSG’s business or Employee’s driving or other standard of care to others, is not discriminatory, harassing, offensive
or unprofessional, does not include visiting discriminatory or offensive Internet sites, does not include posting personal opinions on Internet sites, and does not otherwise violate any policy or directive of LSG. Employee shall promptly return upon
the conclusion or termination of Employee’s employment, or at any other time when requested, LSG’s Equipment without altering, deleting, scrubbing or destroying any information or data contained on LSG’s Equipment. 

12. No Expectation Of Privacy. Employee acknowledges that in connection with using LSG’s Equipment, Employee has no
expectation of privacy and Employee specifically consents that LSG may monitor, search, view, print, disclose and otherwise do as it pleases with any information stored or transmitted using LSG’s Equipment, for any reason or no reason.
Permitted incidental personal use of LSG equipment shall not create any expectation of privacy for Employee and shall not in any way limit Employee’s specific consent to LSG monitoring, searching, viewing, printing or disclosing or otherwise
doing as it pleases with information stored or transmitted using LSG’s Equipment. 
 13. LSG Policies. Employee
acknowledges that LSG has issued a number of policies and that from time to time LSG may issue further policies or revised policies and that such policies may be posted and/or distributed in hard copy form, may be distributed by e-mail, may be
available on LSG’s intranet site, or may be available on the TriNet Internet site. Employee agrees to carefully review and comply with such policies, whether or not any such policy has been delivered personally to Employee, and understands that
Employee’s compliance with LSG’s policies is a condition of employment. 
 14. Conflicts Of Interest. Employee
acknowledges that it is the policy of LSG to conduct its affairs in compliance with the law and to adhere to the highest principles of business ethics. Employee agrees to avoid activities which are in conflict, or give the appearance of being in
conflict, with these principles. Activities considered to be a violation of LSG’s conflict of interest principles include, but are not limited to: 
 a. outside of the normal and proper course of performing Employee’s duties and responsibilities for LSG, revealing Confidential Information to outsiders or misusing Confidential Information, whether
or not for personal gain and whether or not harm to LSG is intended; 
 b. accepting or offering substantial gifts, excessive
entertainment, favors or payments, without prior written consent of the Chief Executive Officer of LSG; 
 c. without disclosure
to and approval of Employee’s supervisor, initiating or approving personnel actions affecting reward or punishment of employees or applicants where there is a family relationship or is or appears to be a personal or social involvement;

  
 Lighting
Science Group Corporation — www.lsgc.com 
  

					
	         California

        11390 Sunrise Gold Circle, Suite 800

        Rancho Cordova, CA 95742

North America        v
916.852.1719        Australia

         f 916.852.1740
	  		  	 Florida
 1227 S. Patrick Drive, BLDG. 2A
 Satellite Beach, Florida 32937

Asia        v
321.779.5520        Europe
 f
321.779.5521   

  

 

 

 
  

 d. initiating or approving any form of personal, social, racial, sexual or any type of
harassment or discrimination of employees; 
 e. investing in a company that is a customer or supplier of LSG (except ownership
of one percent (1%) or less of the equity securities of any publicly traded company); 
 f. borrowing from or lending to any
customer or supplier of LSG; 
 g. making any agreement with a third party concerning a payment (such as the payment of a reward,
rebate, incentive, commission, or finder’s fee) to facilitate or reward a sale, unless such agreement has been specifically approved in writing by the General Counsel of LSG; 

h. engaging in any conduct which is not in the best interest of LSG; and/or, 

i. entering into or negotiating any unlawful agreement on behalf of LSG. 

15. Conflicting Employment. During the term of Employee’s employment with LSG, Employee shall not directly or indirectly act
as an employee, employer, consultant, agent, principal, partner, stockholder, corporate officer or director or in any other individual or representative capacity engage or participate in any business activity that detracts from Employee’s
ability to meet Employee’s duties and responsibilities as an employee of LSG. 
 16. Non-Competition. 

a. Definitions. 

i. “Competitor” means any entity engaged in the research, development, manufacture, or sale of LED lighting devices, including
but not limited to, LED lighting components, LED retrofit lamps, LED luminaires, LED fixtures and/or LED lighting systems. 

ii. “Competition” means and includes, but is not limited to: (A) employment by, contract services for, or consulting for
any Competitor of LSG; and/or, (B) any direct or indirect, sole or joint, ownership, management, operation, or control of or investment in (except ownership of one percent (1%) or less of the equity securities of any publicly traded company) a
Competitor of LSG. 
 iii. URestricted Area” means, because LSG is engaged in business throughout the United States and
Employee has responsibility for and/or will perform services for or regarding LSG throughout the United States, the United States, and every country in which LSG conducts business during Employee’s employment with LSG and for or regarding which
Employee had responsibilities or performed services. 
 b. During Employment. During Employee’s employment by LSG, Employee
shall not establish any business or engage in any acts that are or will be in Competition with LSG in the Restricted Area. 

  
 Lighting
Science Group Corporation — www.lsgc.com 
  

					
	         California

        11390 Sunrise Gold Circle, Suite 800

        Rancho Cordova, CA 95742

North America        v
916.852.1719        Australia

         f 916.852.1740
	  		  	 Florida
 1227 S. Patrick Drive, BLDG. 2A
 Satellite Beach, Florida 32937

Asia        v
321.779.5520        Europe
 f
321.779.5521   

  

 

 

 
  

 c. After Employment. After Employee’s employment with LSG concludes or is
terminated (regardless of whether Employee or LSG terminates the employment relationship and regardless of the reasons for the termination), LSG shall have the option to preclude Employee from being in, or entering into, Competition with LSG for up
to (1) year, anywhere within the Restricted Area as follows: 
 i. If Employee resigns or indicates that Employee intends
to resign from employment by LSG, within (10) days of Employee informing LSG in writing of Employee’s resignation or intention to resign, LSG shall notify Employee in writing (A) whether it will exercise its option to preclude
Employee from being in, or entering into, Competition with LSG in the Restricted Area and, (B) if LSG is going to exercise its option to preclude Employee from being in, or entering into, Competition with LSG in the Restricted Area, for how
long, such period to be not less than three (3) months and not longer than one (1) year. 
 ii. If Employee’s
employment is terminated by LSG, upon LSG giving Employee notice of termination, LSG shall notify Employee in writing of whether it will exercise its option to preclude Employee from being in, or entering into, Competition with LSG in the Restricted
Area and, if LSG is going to exercise its option to preclude Employee from being in, or entering into, Competition with LSG in the Restricted Area, for how long, such period to be not less than three (3) months and not longer than one
(1) year. 
 iii. Except as provided herein with respect to termination of employment following a “Change in
Control” (as that term is defined in the Lighting Science Group Corporation Amended and Restated Equity-Based Compensation Plan, or any successor thereto), if LSG exercises its option to preclude Employee from being in, or entering into,
Competition with LSG and/or soliciting pursuant to Section 17, below, then LSG shall pay Employee an amount equal to Employee’s monthly base salary in effect at the time Employee’s employment with LSG concludes or is terminated for
each month of the period Employee is precluded from being in, or entering into, Competition with LSG in the Restricted Area, in equal installments in accordance with the LSG’s payroll practices, provided that such payments shall be offset by
the amount of any severance payments for such period payable to Employee under any agreement with the Company. If Employee’s employment is terminated by LSG or its successor without “Cause” or Employee resigns for “Good
Reason” (as those terms are defined in that certain letter agreement between Employee and the Company dated February 10, 2011) within two (2) years immediately following a Change in Control, if LSG exercises its option to preclude
Employee from being in, or entering into, Competition with LSG, then in lieu of the forgoing LSG shall pay Employee an amount equal to one-half of Employee’s monthly base salary in effect at the time Employee’s employment with LSG
concludes or is terminated for each month of the period Employee is precluded from being in, or entering into, Competition with LSG in the Restricted Area, in equal installments in accordance with the LSG’s payroll practices, and such payments
shall be in addition to any severance payments for such period payable to Employee under any agreement with the Company. Employee shall forfeit any right to unpaid amounts under this subsection if Employee does not execute and return within 45 days
immediately after Employee’s termination (and not revoke) a valid waiver and release of all claims that Employee may have against the Company, in a form provided by the Company. 

17. Non-Solicitation. During the term of Employee’s employment and during the period set forth in Section 16.c, above
(regardless of whether Employee or LSG terminates the employment relationship and regardless of the reasons for the termination), Employee shall not directly or indirectly, solicit or attempt to solicit. from any of LSG’s customers, customer
prospects, vendors, suppliers, and/or consultants, any business competitive with the research, development, manufacture, or sale of LED lighting devices, including but not limited to, LED lighting components, LED retrofit lamps, LED luminaires, LED
fixtures and/or LED lighting systems, 

  
 Lighting
Science Group Corporation — www.lsgc.com 
  

					
	         California

        11390 Sunrise Gold Circle, Suite 800

        Rancho Cordova, CA 95742

North America        v
916.852.1719        Australia

         f 916.852.1740
	  		  	 Florida
 1227 S. Patrick Drive, BLDG. 2A
 Satellite Beach, Florida 32937

Asia        v
321.779.5520        Europe
 f
321.779.5521   

  

 

 

 
  

 
and Employee shall not otherwise attempt to persuade any of LSG’s customers, customer prospects, vendors, suppliers and/or consultants to end or reduce the amount of the business they
conduct with LSG. This provision is limited to LSG customers, customer prospects, vendors, suppliers, and consultant who or which Employee did business with during Employee’s employment with LSG, Employee learned of during or as result of
Employee’s employment with LSG or about or regarding whom or which Employee received Confidential Information. 
 18. No
Recruiting. During the term of Employee’s employment and for six (6) months after the end of Employee’s employment by LSG, Employee shall not assist anyone else to hire any employee, consultant, or temporary employee of LSG or
seek to persuade any employee, consultant, or temporary employee of LSG to discontinue employment or to become employed in any business which is directly or indirectly in competition with LSG’s business, nor seek to persuade any third party to
discontinue a relationship with LSG. 
 19. Termination. Employee shall be considered terminated for the purposes of these
Terms & Conditions if Employee ceases to be an employee of LSG for any reason whatsoever, such as by Employee’s resignation, dismissal, disability, or leave of absence (and Employee does not return at the end thereof or if Employee notifies
LSG that Employee does not intend to return). 
 20. Equitable Relief. Employee acknowledges that were Employee to breach
any provision of these Terms & Conditions, the harm to LSG would be irreparable. Employee therefore agree that in the event of such a breach or threat of such a breach, LSG shall be, in addition to any other remedies available to it,
entitled to preliminary injunctive relief against any such breach or threat of such breach. 
 21. Waiver Of Breach. A
breach of any provision of these Terms & Conditions may only be waived in writing and the waiver of such breach shall not operate or be construed as a waiver of any subsequent breach. 

22. Headings. Headings in these Terms & Conditions are for the purpose of convenience only. They are not intended to be a
material part of these Terms & Conditions, and in the event of any conflict between the heading and the text, the text shall govern. 
 23. Severability. If any provision of these Terms & Conditions should, for any reason, be held invalid or unenforceable in any respect, the remainder of these Terms & Conditions
shall be enforced to the full extent permitted by law. A court of competent jurisdiction is hereby empowered to modify any invalid or unenforceable provision to make it valid and enforceable, and if the court declines to modify the provision, the
court may sever the portions of the provision determined to be invalid or unenforceable and enforce the remainder of the provision. 
 24. Waiver Of Jury Trial. The parties hereby agree to waive their respective rights to a jury trial of any claim or cause of action related to or arising out of these Terms & Conditions.
The scope of the waiver is intended to be all encompassing of any and all disputes that may be filed in any court and that relate to the subject matter herein, including without limitation, contract claims, tort claims, breach of duty claims, and
all other common law and statutory claims. The parties each acknowledge that the waiver is a material inducement for each party to enter into the employer- employee relationship, that each party has already relied on the waiver in entering into
these Terms & Conditions and that each will continue to rely on the waiver in their related future dealings. Each party further warrants and represents that each has had the opportunity to have its legal counsel review the waiver. The
waiver is irrevocable, meaning that it may not be modified either orally or in writing, and the waiver shall apply to any subsequent amendments, renewals, supplements or modifications to these Terms & Conditions. In the event of litigation,
these Terms & Conditions may be filed as written consent to a trial by court. 

  
 Lighting
Science Group Corporation — www.lsgc.com 
  

					
	         California

        11390 Sunrise Gold Circle, Suite 800

        Rancho Cordova, CA 95742

North America        v
916.852.1719        Australia

         f 916.852.1740
	  		  	 Florida
 1227 S. Patrick Drive, BLDG. 2A
 Satellite Beach, Florida 32937

Asia        v
321.779.5520        Europe
 f
321.779.5521   

  

 

 

 
  

 25. Dispute Resolution. 

a. If Employee is (i) based in the United States other than in California, (ii) works primarily in the United States other than
in California, or (iii) is domiciled in the United States other than in California, then the exclusive forum for any legal action relating to any dispute concerning these Terms & Conditions, a breach of these Terms & Conditions, or
Employee’s employment by LSG, will be the federal and state courts located in Florida, U.S.A and Employee and LSG irrevocably consent and agree to consent to personal jurisdiction and venue in each such court. 

b. If Employee is (i) based in California, U.S.A, (ii) works primarily in LSG’s office in California, U.S.A, or
(iii) is domiciled in California, U.S.A., then any dispute concerning these Terms & Conditions, a breach of these Terms & Conditions, or Employee’s employment by LSG shall be finally settled by arbitration in accordance with
the rules of the American Arbitration Association. Such arbitration proceeding shall take place in Sacramento, California, USA in the English language, before a single arbitrator. LSG and Employee consent and agree to consent to the jurisdiction of
the arbitrator. The arbitrator shall have authority to award all relief allowed by law. The arbitrator shall issue a written, well reasoned decision and any decision and/or award by the arbitrator shall be final and binding upon the parties, and
neither party shall call upon a court of law or any other authority in an attempt to invalidate, amend or review the arbitral award. Notwithstanding the foregoing requirement to arbitrate disputes, LSG may seek and obtain temporary and/or
preliminary injunctive relief from a competent court in case of a material breach or imminent material breach of these Terms & Conditions and may seek and obtain from a court of competent jurisdiction an order to confirm 

and/or to enforce an arbitration decision, ruling, and/or award. LSG shall pay arbitration costs. 

c. If Employee is (i) based outside of the United States, (ii) works primarily outside of the United States, or (iii) is
domiciled outside of the United States, then, to the extent permitted by applicable law, any dispute concerning these Terms & Conditions, a breach of these Terms & Conditions, or Employee’s employment by LSG shall be finally
settled by arbitration in accordance with the rules of the International Chamber of Commerce. Such arbitration proceeding shall take place in Amsterdam, The Netherlands, in the English language, before a single arbitrator. LSG and Employee consent
and agree to consent to the jurisdiction of the arbitrator. The arbitrator shall have authority to award all relief allowed by law. The arbitrator shall issue a written, well reasoned decision and any decision and/or award by the arbitrator shall be
final and binding upon the parties, and neither party shall call upon a court of law or any other authority in an attempt to invalidate, amend or review the arbitral award. Notwithstanding the foregoing requirement to arbitrate disputes, LSG may
seek and obtain temporary and/or preliminary injunctive relief from a competent court in case of a material breach or imminent material breach of these Terms & Conditions and may seek and obtain from a court of competent jurisdiction an order to
confirm and/or to enforce an arbitration decision, ruling, and/or award. 
 26. Governing Law. To the extent permitted by
applicable law, these Terms & Conditions shall be governed by and interpreted in accordance with the laws of the State of Florida, United States of America without regard to principles of conflict of laws. 

  
 Lighting
Science Group Corporation — www.lsgc.com 
  

					
	         California

        11390 Sunrise Gold Circle, Suite 800

        Rancho Cordova, CA 95742

North America        v
916.852.1719        Australia

         f 916.852.1740
	  		  	 Florida
 1227 S. Patrick Drive, BLDG. 2A
 Satellite Beach, Florida 32937

Asia        v
321.779.5520        Europe
 f
321.779.5521   

  

 

 

 
  

 27. Electronic Signature. LSG and Employee agree to accept facsimile, scanned,
and copied signatures of each other as original signatures for the purposes of executing these Terms & Conditions as specified below and further agree to accept copied, scanned, electronic, and printed versions of these Terms &
Conditions fully signed and/or executed as if it was an original. 
 IN WITNESS WHEREOF, LSG and Employee have signed these Terms &
Conditions on the date(s) set forth below. 

  
 Lighting
Science Group Corporation — www.lsgc.com 
  

					
	         California

        11390 Sunrise Gold Circle, Suite 800

        Rancho Cordova, CA 95742

North America        v
916.852.1719        Australia

         f 916.852.1740
	  		  	 Florida
 1227 S. Patrick Drive, BLDG. 2A
 Satellite Beach, Florida 32937

Asia        v
321.779.5520        Europe
 f
321.779.5521Termination Agreement

 Exhibit 10.1 
 EXECUTION COPY 
 TERMINATION AGREEMENT

This Termination Agreement (“Termination Agreement”), by and between Sunoco, Inc., a Pennsylvania corporation
(the “Company”), and Lynn L. Elsenhans (“Executive”), is dated April 29, 2012. 
 WHEREAS, in accordance with the Company’s February 2, 2012 announcement, on March 1, 2012, Executive ceased to serve as Chief Executive Officer of the Company and agreed to continue
to serve as Executive Chairman of the Board of Directors of the Company (the “Board”) until May 3, 2012, at which time Executive will resign from her employment with the Company. 

WHEREAS, Executive and the Company wish to set forth their mutual agreement as to the terms and conditions of Executive’s
resignation. 
 WHEREAS, because Executive has intimate and valuable knowledge and experience in the operation of the
Company’s business and other confidential information related to the Company’s business, the Company has determined that it is in the best interests of the Company to induce Executive to agree not to divulge the confidential information of
the Company, or to compete with the Company or solicit the Company’s employees and customers during the two year period following Executive’s termination of employment with the Company (together, the “Restrictive
Covenants”), as further set forth in this Termination Agreement. 
 WHEREAS, as an inducement for Executive
agreeing to the Restrictive Covenants, the Company has determined to offer Executive the consideration described in Section 5 of this Termination Agreement (the “Restrictive Covenants Consideration”). 

WHEREAS, the Company would not have agreed to provide Executive with the Restrictive Covenants Consideration but for
Executive’s agreement to abide by the Restrictive Covenants. 
 NOW, THEREFORE, the Company and Executive hereby
agree as follows: 
 1. Resignation. Effective as of May 3, 2012 (the “Resignation
Date”), Executive hereby resigns from her employment with the Company and from any positions Executive holds (or held) with the Company or any of the Company’s subsidiaries or affiliates, and Executive will not stand for
re-election to the Board at the Company’s May 3, 2012 annual meeting of stockholders. 
 2. Vacation.
Within 30 calendar days of the Resignation Date, the Company will pay to Executive a lump sum equal to $122,808, less applicable tax withholdings, representing the value of Executive’s earned but unused vacation through the Resignation Date.

 3. Pension Benefits, Deferred Compensation and 401(k) Plan. (a) Executive
will be eligible to receive Executive’s accrued benefit under the Sunoco, Inc. Retirement Plan (“SCIRP”) and under the Sunoco, Inc. Cash Option Retirement Plan (“SCORP”) in accordance with the
applicable terms and conditions of the SCIRP and the SCORP. 
 (b) The Company shall pay to Executive on the six month
anniversary of the Resignation Date the unpaid balance in Executive’s deferred compensation account under the Sunoco, Inc. Executive Involuntary Deferred Compensation Plan (“EIDCP”), such payment to be made in a lump
sum, less applicable tax withholdings. The Company and Executive agree that the unpaid balance in Executive’s deferred compensation account under the EIDCP is comprised of share units with respect to 9,046.106 shares of Company common stock and
share units with respect to 4,774.701 shares of SunCoke Energy, Inc. (“SXC”) common stock and that such share units shall be valued based on the average closing price for shares of Company common stock or SXC common stock, as
applicable, as published in the Wall Street Journal or any other publication selected by the Compensation Committee of the Board for the period of ten trading days immediately prior to the Resignation Date. 

(c) Upon the Resignation Date, Executive’s active participation in the Company 401(k) plan will cease and Executive will be eligible
to receive Executive’s accrued benefits under the Company 401(k) plan in accordance with the terms and conditions of the Company 401(k) plan. 
 4. Resignation Payments and Benefits. Subject to Executive’s execution of a release in the form attached as Exhibit A to this Termination Agreement (the
“Release”) within 21 calendar days following the Resignation Date, and the non-revocation of the Release during the seven-day period following execution of the Release (together, the “Release
Conditions”): 
 (a) The Company will pay to Executive a lump sum amount equal to $1,500,710, less applicable tax
withholdings, on the six-month anniversary of the Resignation Date. 
 (b) Commencing on December 1, 2012, and continuing
until May 1, 2014, on the first day of each month, the Company will pay to Executive a lump sum amount equal to $250,118, less applicable tax withholdings. 
 (c) Executive will be eligible for coverage under the Company’s medical insurance program (excluding dental coverage) pursuant to the Consolidated Omnibus Budget Reconciliation Act
(“COBRA”) for the 24 month-period immediately following the Resignation Date (the “COBRA Continuation Period”); provided, however, that Executive will be responsible for the employee
portion of the insurance premium payment and the Company will be responsible for the employer portion of the insurance premium payment (which amount will be treated as imputed income to Executive). Following the COBRA Continuation Period, Executive
will be eligible for coverage under the Company’s medical insurance program (excluding dental coverage); provided that Executive enrolls for such coverage one month prior to the conclusion of the COBRA Continuation Period, and
provided further that Executive will be responsible for the full premiums under the Company’s medical insurance program. If 

  
 2 

 
Executive fails to enroll in, or declines coverage under, the Company’s medical insurance program at any point in time, Executive may not thereafter enroll in such program at any point in
the future. 
 (d) Executive will be entitled to outplacement services not in excess of $30,000 in total value but only to the
extent such services are provided no later than the end of the second calendar year following the Resignation Date and are paid for directly by the Company no later than the end of the third calendar year following the year in which the Resignation
Date occurs. 
 (e) Executive will continue to be entitled to the benefits under Section 4.7 of the Sunoco, Inc. Special
Executive Severance Plan (the “CIC Plan”) following the Resignation Date. 
 For the avoidance of doubt, Executive
acknowledges and agrees that Executive’s rights and benefits under this Section 4 (to which Executive is not otherwise entitled) are subject to the satisfaction of the Release Conditions, and Executive shall forfeit all rights and benefits
under this Section 4 if the Release Conditions are not satisfied or if Executive does not comply with the terms of the Release. 
 5. Restrictive Covenants Consideration. Subject to the satisfaction of the Release Conditions: 
 (a) (i) (A) The equity awards described on Exhibit B to this Termination Agreement shall vest on the 30th day following the Resignation Date, and (B) any restricted stock units or performance stock units described on
Exhibit B to this Termination Agreement shall be settled within five calendar days following vesting, subject to Executive’s payment of all applicable tax withholdings. Any vested options to purchase Company common stock
(including those options that vest pursuant to this Section 5(a)), shall remain exercisable until the earlier of (x) the ten-year anniversary of the applicable option grant date, and (y) the one-year anniversary of the Resignation
Date, and thereafter shall be forfeited. For the avoidance of doubt, in the event of a Change in Control (as defined in the CIC Plan), any vested and unexercised options to purchase Company common stock held by Executive shall be subject to the
treatment provided for in the transaction agreement governing the Change in Control (as defined in the CIC Plan). Except as provided in the first sentence of this Section 5(a), effective on the Resignation Date, Executive shall forfeit all
unvested Company equity awards and all unvested equity awards of Sunoco Logistics Partners, L.P. (“SXL”). 
 (ii) With respect to any restricted stock units or performance stock units that vest pursuant to the first sentence of Section 5(a)(i) of this Termination Agreement, other than transfers to family
members or family trusts, Executive shall be prohibited from effecting the sale, exchange, transfer, pledge, hypothecation, gift or other disposition of the shares of Company common stock or SXL units earned as a result of such vesting. The number
of shares of Company common stock subject to the restrictions set forth in the first sentence of this Section 5(a)(ii) shall be equal to the total number of shares of Company common stock being distributed, minus the number of shares of Company
common stock used to pay applicable federal, state and 

  
 3 

 
local withholding tax on the total payment in respect of the Company restricted stock units or Company performance stock units. The number of SXL units subject to the restrictions set forth in
the first sentence of this Section 5(a)(ii) shall be equal to the total number of SXL units being distributed, minus the number of SXL units used to pay applicable federal, state and local withholding tax on the total payment in respect of the
SXL performance units. Until such time as the restrictions set forth in this Section 5(a)(ii) lapse, the shares or units (as applicable) will be held in “book-entry form” and appropriate notation of these restrictions will be
maintained in the records of the transfer agent and registrar for the Company or SXL, as applicable. Any certificate representing such shares or units, as applicable, will bear a conspicuous legend evidencing these restrictions, and the Company, or
SXL, as applicable, may require Executive to deposit the certificate with the Company or its agent or SXL or its agent, as applicable, endorsed in blank or accompanied by a duly executed irrevocable stock power or other instrument of transfer. The
restrictions set forth in this Section 5(a)(ii) shall cease to apply upon the earlier of (x) the occurrence of a Change in Control (as defined in the CIC Plan), and (y) the six-month anniversary of the Resignation Date. 

(b) If a Change in Control (as defined in the CIC Plan) occurs on or prior to the one-year anniversary of the Resignation Date (the
“CIC Condition”), Executive shall be entitled to the Exhibit C Consideration (as defined in Exhibit C to this Termination Agreement), payable in accordance with the terms of Exhibit C to this
Termination Agreement. 
 (c) The Company agrees to forgo its right to clawback the portion of the Company restricted stock
units and performance stock units that accelerated upon the occurrence of the spin-off of SXC and were settled on February 10, 2012. 
 For
the avoidance of doubt, Executive acknowledges and agrees that Executive’s rights and benefits under this Section 5 (to which Executive is not otherwise entitled) are subject to the satisfaction of the Release Conditions, and Executive
shall forfeit all rights and benefits under this Section 5 if the Release Conditions are not satisfied or if Executive does not comply with the terms of the Release. 
 6. Acknowledgment. Except as otherwise set forth in this Termination Agreement, Executive acknowledges that following the Resignation Date, the Company will have no other obligations to
Executive. For the avoidance of doubt, Executive acknowledges (a) that the rights set forth in Section 2 and Section 4(a)-(d) of this Termination Agreement are in full satisfaction of Executive’s rights under the Sunoco,
Inc. Executive Involuntary Severance Plan, and (b) that Executive has no rights under the CIC Plan, except as set forth in Section 4(e) of this Termination Agreement. Executive acknowledges that the Company will have available to it all
remedies at law and at equity, including injunctive relief, in the event that Executive breaches any of her obligations under this Termination Agreement or the Release. 
 7. Cooperation. (a) In order to be eligible to receive the benefits set forth in Section 4 of the Termination Agreement and Section 5 of the Termination Agreement, Executive
agrees to make herself available to the Company and cooperate in any reasonable manner (so as 

  
 4 

 
not to unreasonably interfere with subsequent employment) in providing assistance to the Company after the Resignation Date in conducting any matters which are pending at such time. 

(b) To the extent requested by the Company, Executive shall cooperate with the Company in good faith in valuing, and
PricewaterhouseCoopers LLP shall take into account the value of, services provided or to be provided by Executive (including without limitation, Executive agreeing to refrain from performing services pursuant to a covenant not to compete or similar
covenant) before, on or after the date of a change in ownership or control of the Company (within the meaning of Q&A-2(b) of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”)), such that
payments in respect of such services (or refraining from performing such services) may be considered reasonable compensation within the meaning of Q&A-9 and Q&A-40 to Q&A-44 of Section 280G of the Code and/or exempt from the
definition of the term “parachute payment” within the meaning of Q&A-2(a) of Section 280G of the Code in accordance with Q&A-5(a) of Section 280G of the Code. The Company and Executive agree that for purposes of
Section 4.7 of the CIC Plan, “Accounting Firm” shall mean PricewaterhouseCoopers LLP. 
 8. Restrictive
Covenants. (a) Confidential Information. Executive shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by Executive during Executive’s employment by the Company or any of its affiliated companies and which shall not be or become public knowledge (other than by acts by
Executive or representatives of Executive in violation of this Termination Agreement). After termination of Executive’s employment with the Company, Executive shall not, without the prior written consent of the Company or as may otherwise be
required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than the Company and those designated by it. Executive’s obligations set forth in the immediately preceding sentence shall not
apply to information that (i) was known to the public prior to its disclosure to Executive; (ii) becomes generally known to the public subsequent to disclosure to Executive through no wrongful act of Executive or any representative of
Executive; (iii) is disclosed by Executive in the good faith performance of Executive’s duties under this Termination Agreement; or (iv) Executive is required to disclose by applicable law, regulation or legal process. 

(b) Non-Solicitation. During the two-year period following the Resignation Date (the “Restricted Period”),
Executive shall not directly or indirectly (i) induce or attempt to induce any employee or independent contractor of the Company or any of its subsidiaries to leave the Company or such subsidiaries, or in any way interfere with the relationship
between the Company or any such subsidiary, on the one hand, and any employee or independent contractor thereof, on the other hand, (ii) hire any person who was an employee or independent contractor of the Company or any subsidiary until twelve
(12) months after such individual’s relationship with the Company or such subsidiary has been terminated or (iii) induce or attempt to induce any customer (whether former or current), supplier, licensee or other business relation of
the Company or any subsidiary of the Company to cease doing business with the Company or such subsidiary, or in any way interfere with the relationship between any such customer, supplier, licensee or business relation, on the one hand, and the
Company or any subsidiary of the 

  
 5 

 
Company, on the other hand. Notwithstanding the foregoing, the provisions of this Section 8(b) shall not be violated by (x) general advertising or solicitation not specifically targeted
at Company-related persons or entities or (y) Executive serving as a reference, upon request, for any employee of the Company or any of its subsidiaries or affiliates. 
 (c) Non-Compete. Executive acknowledges that, in the course of Executive’s employment with the Company, Executive has become familiar, or will become familiar, with the Company’s and its
subsidiaries’ trade secrets and with other confidential information concerning the Company, its affiliates and their respective predecessors and that Executive’s services have been and will be of special, unique and extraordinary value to
the Company and its subsidiaries. Therefore, Executive agrees that during the Restricted Period, Executive shall not, directly or indirectly, own, manage, operate, control, be employed by (whether as an employee, director, consultant, independent
contractor or otherwise, and whether or not for compensation) or render services to a Competing Business (as defined below), in any locale of any country in which the Company or any of its subsidiaries conducts business. For purposes of this
Termination Agreement, a “Competing Business” shall mean any person, firm, corporation or other entity, in whatever form, engaged in (i) the manufacture, refining and/or blending of predominantly hydrocarbon based
transportation fuels and other hydrocarbon refined products, including but not limited to: gasoline, jet fuel, and diesel fuel; (ii) the wholesale and/or retail marketing of such fuels through various channels of distribution, including export
sales; (iii) operating convenience stores; (iv) the transportation (by pipeline, truck, rail or otherwise), storage, and/or terminaling of crude oil, refined products, liquefied natural gas and/or related hydrocarbons; (v) operation
of trading or other supply and distribution activities related hydrocarbon products and/or crude oil (including gathering and related services); or (vi) owning or operating assets used for, or in connection with, any of the foregoing. Nothing
herein shall prohibit Executive (x) from being a passive owner of not more than 1% of the outstanding equity interest in any entity which is publicly traded, so long as Executive has no active participation in the business of such entity or
(y) commencing employment with a subsidiary, division or unit of any entity that engages in a Competing Business so long as Executive and such subsidiary, division or unit does not engage in a Competing Business. For the avoidance of doubt,
clause (vi) of this Section 8(c) shall not preclude Executive from working or performing services for, being affiliated with, having an ownership interest in or operating a firm, corporation or other entity solely by virtue of such
firm’s, corporation’s, or other entity’s ownership or operation of assets used to provide goods or services to the Company or a Competing Business, so long as such conduct does not violate Section 8(a), Section 8(b) or any
of clauses (i) through (v) of this Section 8(c), it being understood that if such conduct does violate Section 8(a), Section 8(b) or any of clauses (i) through (v) of this Section 8(c), such conduct shall be
prohibited. 
 (d) Non-Disparagement. Executive agrees that Executive shall not disparage the Company or any of its
affiliates, or the businesses, practices, officers, directors, employees or other service providers of the Company or any of its affiliates. The Company agrees to instruct its directors and its senior executive officers not to disparage Executive.
Notwithstanding the foregoing, nothing in this Termination Agreement shall prohibit any person from making truthful statements when required by order of a court or other body having jurisdiction, or as otherwise may be required by law or legal
process. 

  
 6 

 (e) Executive Covenants Generally. 

(i) Executive’s covenants as set forth in this Section 8 are from time to time referred to herein as the “Executive
Covenants.” If any of the Executive Covenants is finally held to be invalid, illegal or unenforceable (whether in whole or in part), such Executive Covenants shall be deemed modified to the extent, but only to the extent, of such
invalidity, illegality or unenforceability and the remaining Executive Covenants shall not be affected thereby; provided, however, that if any of the Executive Covenants is finally held to be invalid, illegal or unenforceable because
it exceeds the maximum scope determined to be acceptable to permit such provision to be enforceable, such Executive Covenants will be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision
enforceable hereunder. 
 (ii) Executive understands that the Executive Covenants may limit Executive’s ability to earn a
livelihood in a Competing Business. 
 (iii) Any termination of Executive’s employment or of this Termination Agreement
shall have no effect on the continuing operation of this Section 8. 
 (iv) Executive acknowledges that the Company would
be irreparably injured by a violation of this Section 8 and that it is impossible to measure in money the damages that will accrue to the Company by reason of a failure by Executive to perform any of Executive’s obligations under this
Section 8. Accordingly, if the Company institutes any action or proceeding to enforce any of the provisions of this Section 8, to the extent permitted by applicable law, Executive hereby waives the claim or defense that the Company has an
adequate remedy at law, and Executive shall not urge in any such action or proceeding the defense that any such remedy exists at law. Furthermore, in addition to other remedies that may be available, the Company shall be entitled to specific
performance and other injunctive relief, without the requirement to post bond. 
 9. Entire Agreement. This
Termination Agreement (including the Exhibits to this Termination Agreement) constitutes the entire understanding between Executive and the Company, and supersedes all prior discussions, representations, and negotiations with respect to the matters
herein relating to Executive’s termination of employment with the Company. Executive will not be entitled to any additional compensation or benefits from the Company or its subsidiaries or affiliates, except as provided in this Termination
Agreement. 
 10. Waivers. No failure on the part of either party to exercise, and no delay in exercising, any
right or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right or remedy granted hereby or by
any related document or by law. 
 11. Modification. No supplement, modification, or amendment of this Termination
Agreement shall be binding unless executed in writing by both Executive and the Company. 
 12. Successors.
(a) This Termination Agreement is personal to Executive and without the prior written consent of the Company shall not be assignable by Executive otherwise than by 

  
 7 

 
will or the laws of descent and distribution. This Termination Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives. In the event Executive dies
before all payments and benefits due to Executive pursuant to this Termination Agreement are delivered to her, such payments and benefits shall be made to the heir(s) designated in her will or her estate in the absence of such designation in her
will. 
 (b) This Termination Agreement shall inure to the benefit of and be binding upon the Company and its successors and
assigns. 
 (c) As used in this Termination Agreement, “Company” shall mean the Company as hereinbefore
defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Termination Agreement by operation of law, or otherwise. 
 13. Governing Law. This Termination Agreement will be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to any choice of law or
conflicting provision or rule (whether of the Commonwealth of Pennsylvania or any other jurisdiction) that would cause the laws of any jurisdiction other than the Commonwealth of Pennsylvania to be applied. In furtherance of the foregoing, the
internal laws of the Commonwealth of Pennsylvania will control the interpretation and construction of this Termination Agreement, even if under such jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other
jurisdiction would ordinarily apply. The provisions of this Termination Agreement are severable, and if any part or portion of it is found to be unenforceable, the other paragraphs shall remain fully valid and enforceable. Executive and the Company
agree to submit to the jurisdiction of the state and federal courts of the Commonwealth of Pennsylvania. 
 14.
Counterparts. This Termination Agreement may be executed in two or more counterparts (including counterparts delivered by facsimile or email), each of which will be deemed an original. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 8 

 IN WITNESS WHEREOF, the Company has caused this Termination Agreement to be executed and
delivered by its duly authorized officer and Executive has executed and delivered this Termination Agreement as of the date first set forth above. 
  

			
	SUNOCO, INC.
		
		 	 /s/ Stacy L. Fox

	By:	 	Stacy L. Fox
	Title:	 	 Senior Vice President,
 General
Counsel and
 Corporate Secretary

	
	 /s/ Lynn L. Elsenhans

	Lynn L. Elsenhans

 [SIGNATURE PAGE TO TERMINATION AGREEMENT] 

 Exhibit A 

[RELEASE BEGINS ON NEXT PAGE] 

 THIS RELEASE (this “Release”) is entered into between Lynn L.
Elsenhans (“Executive”) and Sunoco, Inc. (the “Company”), for the benefit of the Company. Reference is made to the Termination Agreement (the “Termination Agreement”), dated April 29, 2012, by
and between the Company and Executive. Capitalized terms used and not defined herein shall have the meanings provided in the Termination Agreement. The entering into and non-revocation of this Release is a condition to Executive’s right to
receive the payments and benefits described in Section 4 and Section 5 of the Termination Agreement (the “Separation Benefits”). 
 Accordingly, Executive and the Company agree as follows: 
 1. In consideration for
the Separation Benefits, to which Executive is not otherwise entitled, and the sufficiency of which Executive acknowledges, Executive represents and agrees, as follows: 
 (a) Executive, for herself, her heirs, administrators, representatives, executors, successors and assigns (collectively “Releasers”), hereby irrevocably and unconditionally releases,
acquits and forever discharges and agrees not to sue the Company or any of its parents, subsidiaries, divisions, affiliates and related entities and their current and former directors, officers, shareholders, trustees, employees, consultants,
independent contractors, representatives, agents, servants, successors and assigns and all persons acting by, through or under or in concert with any of them (collectively “Releasees”), from all claims, rights and liabilities up to
and including the date of this Release arising from or relating to Executive’s employment with, or termination of employment from, the Company and its subsidiaries and affiliates, and from any and all charges, complaints, claims, liabilities,
obligations, promises, agreements, controversies, damages, actions, causes of actions, suits, rights, demands, costs, losses, debts and expenses of any nature whatsoever, known or unknown, suspected or unsuspected and any claims of wrongful
discharge, breach of contract, implied contract, promissory estoppel, defamation, slander, libel, tortious conduct, employment discrimination or claims under any federal, state or local employment statute, law, order or ordinance, including any
rights or claims arising under Title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 621 et seq. (“ADEA”), the Americans with Disabilities Act of 1990,
as amended, the Family Medical Leave Act of 1993, as amended, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended, the Worker
Adjustment and Retraining Notification Act of 1988, as amended, or any other federal, state or municipal ordinance relating to discrimination in employment. Nothing contained herein shall restrict the parties’ rights to enforce the terms of
this Release. 
 (b) To the maximum extent permitted by law, Executive agrees that she has not filed, nor will she ever file, a
lawsuit asserting any claims which are released by this Release, or to accept any benefit from any lawsuit which might be filed by another person or government entity based in whole or in part on any event, act, or omission which is the subject of
this Release. 

 (c) This Release specifically excludes Executive’s rights and the Company’s
obligations with respect to the Separation Benefits. Nothing contained in this Release shall release Executive from her obligations under the Termination Agreement that continue or are to be performed following Executive’s termination of
employment with the Company, and Executive acknowledges that the Company will have available to it all remedies at law and at equity, including injunctive relief, in the event that Executive breaches any of her obligations under the Termination
Agreement or this Release. The covenants, representations and acknowledgments made by Executive in this Release shall continue to have full force and effect after the execution and effectiveness of this Release and the delivery of the Separation
Benefits, and this Release shall inure to the benefit of each Releasee, and the successors and assigns of each of them, to the extent necessary to preserve the intended benefits of such provisions. 

(d) The parties agree that this Release shall not affect the rights and responsibilities of the US Equal Employment Opportunity
Commission (hereinafter “EEOC”) to enforce ADEA and other laws. In addition, the parties agree that this Release shall not be used to justify interfering with Executive’s protected right to file a charge or participate in an
investigation or proceeding conducted by the EEOC. The parties further agree that Executive knowingly and voluntarily waives all rights or claims (that arose prior to Executive’s execution of this Release) the Releasers may have against the
Releasees, or any of them, to receive any benefit or remedial relief (including, but not limited to, reinstatement, back pay, front pay, damages, attorneys’ fees, experts’ fees) as a consequence of any investigation or proceeding conducted
by the EEOC. 
 2. Executive acknowledges that the Company has specifically advised her of the right to seek the advice of an
attorney concerning the terms and conditions of this Release. Executive further acknowledges that she has been furnished with a copy of this Release, and she has been afforded twenty-one (21) calendar days in which to consider the terms and
conditions set forth above prior to this Release. By executing this Release, Executive affirmatively states that she has had sufficient and reasonable time to review this Release and to consult with an attorney concerning her legal rights prior to
the final execution of this Release. Executive further agrees that she has carefully read this Release and fully understands its terms. Executive acknowledges that she has entered into this Release, knowingly, freely and voluntarily. Executive
understands that she may revoke this Release within seven (7) calendar days after signing this Release. Revocation of this Release must be made in writing and must be received by Stacy L. Fox at the Company, 1818 Market Street, Suite 1500,
Philadelphia, Pennsylvania, within the time period set forth above. 
 3. This Release will be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to any choice of law or conflicting provision or rule (whether of the Commonwealth of Pennsylvania or any other jurisdiction) that would cause the laws of any
jurisdiction other than the Commonwealth of Pennsylvania to be applied. In furtherance of the foregoing, the internal law of the Commonwealth of Pennsylvania will control the interpretation and construction of this agreement, even if under such
jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily apply. The provisions of this Release are severable, and if any part or portion of it is found to be unenforceable, the
other paragraphs shall remain fully valid and enforceable. 

  
 2 

 4. This Release shall become effective and enforceable on the eighth day following its
execution by Executive, provided she does not exercise her right of revocation as described above. If Executive fails to sign and deliver this Release or revokes her signature, this Release will be without force or effect, and Executive shall
not be entitled to the Separation Benefits. 
  

							
	Date:	 	  
	 		 	  

		 		 		 	Lynn L. Elsenhans

  
 3 

 Exhibit B 

 

	1.	Options (each an “Option”) to purchase shares of common stock of Sunoco, Inc. (“Sunoco Common Stock”):

  

	 	•	 	 A portion of the unvested Option granted on March 3, 2010 scheduled to vest on March 3, 2013 covering 78,800 shares of Sunoco Common
Stock. 

  

	2.	Restricted Stock Unit Awards 

  

	 	•	 	 A portion of the Restricted Stock Unit Award granted on August 29, 2008, scheduled to vest on August 28, 2012 covering 33,541 shares
of Sunoco Common Stock (together with all associated dividend equivalents $97,268.90). 

  

	 	•	 	 A portion of the Restricted Stock Unit Award granted on March 3, 2010, scheduled to vest on March 2, 2013 covering 44,740 shares of
Sunoco Common Stock (together with all associated dividend equivalents $55,925.00). 

  

	 	•	 	 A portion of the Restricted Stock Unit Award granted on August 29, 2008, scheduled to vest on August 28, 2013 covering 25,157 shares
of Sunoco Common Stock (together with all associated dividend equivalents $72,955.30). 

  

	 	•	 	 A portion of the Restricted Stock Unit Award granted on March 2, 2011, scheduled to vest on March 1, 2014 covering 15,684 shares of
Sunoco Common Stock (together with all associated dividend equivalents $10,194.60). 

  

	3.	Performance Stock Unit Awards 

  

	 	•	 	 A portion of the Performance Stock Unit Award granted on March 3, 2010 covering 25,979 shares of Sunoco Common Stock (together with all
associated dividend equivalents $32,473.75). 

  

	 	•	 	 The Performance Stock Unit Award granted on January 27, 2011 covering 36,819 Sunoco Logistics Partners, L.P. units (together with all
associated dividend equivalents $60,260.43 ). 

 Exhibit C 
 Capitalized terms used but not defined in this Exhibit C shall have the meanings ascribed to such terms in the Termination Agreement, by and between Sunoco, Inc. and Lynn L. Elsenhans, dated
April 29, 2012. 
 “Exhibit C Consideration” means: 

 

	 	(1)	$6,270,000, 

  

	 	(2)	the product obtained by multiplying (a) 125,773 by (b) the Sunoco Closing Price, 

 

	 	(3)	the product obtained by multiplying (a) 90,281 by (b) the Sunoco Closing Price, and 

 

	 	(4)	$59,000 

 “Sunoco Closing
Price” means the closing price of common stock of Sunoco, Inc. on the New York Stock Exchange on the last full trading session prior to the consummation of a Change in Control (as defined in the CIC Plan), as reported in the Wall Street
Journal. 
 “409A CIC” means a “change in the ownership of the corporation,” a “change in effective
control of the corporation” or a “change in the ownership of a substantial portion of the assets of the corporation” within the meaning of Section 409A(a)(2)(A)(v) of the Code. 

Clauses (1) and (2) of the Exhibit C Consideration, less applicable tax withholdings, shall be paid within five calendar days of the
satisfaction of the CIC Condition. If the Change in Control (as defined in the CIC Plan) is a 409A CIC, clauses (3) and (4) of the Exhibit C Consideration, less applicable tax withholdings, shall be paid within five calendar days of the
satisfaction of the CIC Condition. If the Change in Control (as defined in the CIC Plan) is not a 409A CIC, clauses (3) and (4) of the Exhibit C Consideration, less applicable tax withholdings, shall be paid on January 2, 2014.

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