Document:

Letter Agreement with Michael J. Hennigan

 Exhibit 10.3 

 

					
	

	 		 	 Christopher Curia
 Senior Vice
President
 Human Resources
 800 E.
Sonterra Blvd., Suite 400
 San Antonio, Texas 78258-3941
 (210) 403-7331

	 		 	

 October 4, 2012 
 Michael J. Hennigan 
 c/o Sunoco Partners, L.P. 

1818 Market Street 
 Philadelphia, PA 19103

 Dear Mike: 
 As you know, the merger
(the “Merger”) contemplated pursuant to the Agreement and Plan of Merger, dated as of April 29, 2012, as amended, by and among Energy Transfer Partners, L.P. (“Energy Transfer”), Sam Acquisition Corporation, Energy Transfer
Partners GP, L.P., Sunoco, Inc. (“Sunoco”), and, for certain limited purposes set forth therein, Energy Transfer Equity, L.P. is expected to be completed on or before November 1, 2012 (the “Closing Date”). Sunoco will become
a wholly owned indirect subsidiary of Energy Transfer upon the completion of the Merger. On the Closing Date, an affiliate of Energy Transfer will become the general partner of Sunoco Partners LLC (“SXL”). In connection with the Merger,
Energy Transfer would like to offer you the opportunity to continue your employment as a member of the Energy Transfer family of companies as President and Chief Executive Officer of SXL. In this capacity, you will report to the Board of Directors
of SXL. 
 In the event that you wish to accept this offer, the key elements of your employment are summarized below: 

 

	1.	Your salary will be $21,153.85 per pay period, $550,000 on an annual basis. 

 

	2.	As a regular, full-time employee of the Energy Transfer family of companies, in 2012, you will be eligible to participate in the Energy Transfer Bonus Plan, which may
be amended from time to time (“Bonus Plan”). Your current bonus target will be 100% of annual base salary. Your 2012 bonus will be net of the amount you receive under the Sunoco Partners LLC Annual Incentive Plan for 2012. Bonus targets
and bonus payments under the Bonus Plan will be discretionary, and generally will be based upon performance compared to stated objectives and certain other factors as may be determined from time to time. 

  
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	3.	You hereby voluntarily and knowingly agree that Section 1.20 of the Sunoco Partners LLC Special Executive Severance Plan (the “SXL SESP”) shall be
amended with respect to your right to receive benefits under the SXL SESP as follows: 

  

	 	(i)	Section 1.20(b) shall be amended to provide: 

 “(b) a termination of employment by the Participant that occurs from and after the Closing Date for one or more of the following reasons: 

(1) a change in the Participant’s job title; or 

(2) a reduction by the Company in the Participant’s annual salary as provided in Section 1 of the Offer Letter,
or bonus target, as provided in Section 2 of this Offer Letter; or 
 (3) a reduction in the value of the
Participant’s bonus and equity compensation opportunities in the aggregate as provided in the Offer Letter; provided, however, that in the case of any such termination of employment by the Participant under this subparagraph (b), such
termination shall not be deemed to be a Qualifying Termination unless the termination occurs within 120 days after the occurrence of the event or events constituting the reason for the termination; or” 

 

	 	(ii)	The final paragraph of Section 1.20 shall be amended to provide: 

 “A Participant’s mental or physical incapacity following the occurrence of an event described in (b) above shall not affect the Participant’s ability to have a Qualifying Termination.
As used in this Section 1.20, a “termination of employment” means a separation from service as defined in Code Section 409A and the regulations issued thereunder. As used in this Section 1.20, “Closing Date” means
the date of the consummation of the merger contemplated pursuant to the Agreement and Plan of Merger, dated as of April 29, 2012, as amended, by and among Energy Transfer Partners, L.P. (“Energy Transfer”), Sam Acquisition
Corporation, Energy Transfer Partners GP, L.P., Sunoco, Inc., and, for certain limited purposes set forth therein, Energy Transfer Equity, L.P., which is expected to be completed on or before November 1, 2012. As used in this Section 1.20,
“Offer Letter” means the Participant’s offer letter dated October 4, 2012 with Energy Transfer.” 
  

	 	(iii)	Section 3.1(c) shall be amended to provide: 

 “(c) $3,026,793.” 
 The foregoing amendment shall be binding on you, your
descendants, ancestors, dependents, heirs, executors, administrators, assigns and successors. In addition, you will have the right to receive payments and benefits under the SXL SESP if your employment is terminated by SXL by reason of your death or
Disability (as defined in the SXL SESP) after the Closing Date and before the Initial Vesting Date (as defined in Section 4, below). 

  
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 In the event of a change in control (as defined in Section 1.409A-3(i)(5) of the
Treasury Regulations) of SXL after the Closing Date and before the Initial Vesting Date (as defined in Section 4, below), to the extent that you have not already received your payments and benefits under the SXL SESP by the Initial Vesting
Date, all such payments and benefits shall be paid to you on the Initial Vesting Date. 
 Except as provided in this
Section 3, you agree to waive all rights to payments and benefits (x) under the SXL SESP that would be attributable to a change in control occurring after the Closing Date, (y) under the Sunoco Partners LLC Executive Involuntary
Severance Plan, and (z) the Sunoco Partners LLC Involuntary Termination Plan. 
  

	4.	Upon commencement of your employment with the Energy Transfer family of companies following the Closing Date, you will receive an award of 90,000 restricted units of
SXL (the “Restricted Unit Award”), which will be issued under the Sunoco Partners LLC Long-Term Incentive Plan (the “SXL LTIP”). The Restricted Unit Award is subject to the terms of the official unit award letter evidencing such
grant. The Restricted Unit Award will be effective December 5, 2012 and will vest (and be distributed) based on your continued employment with the Energy Transfer family of companies over the following schedule: 

 

					
	 Date
	  	Vested Percentage	 
	 First day following the two-year anniversary of the Closing Date (the “Initial Vesting Date”)
	  	 	40	% 
	 December 5, 2015
	  	 	60	% 
	 December 5, 2016
	  	 	80	% 
	 December 5, 2017
	  	 	100	% 

  

	5.	The Restricted Unit Award will entitle you to receive a quarterly cash distribution on the unvested portion of the common units subject to the Unit Award in an amount
equal to the cash distribution per common unit made by SXL on its issued and outstanding units each quarter. Notwithstanding the foregoing, any such cash distributions payable on the unvested common units subject to the Restricted Unit Award prior
to the Initial Vesting Date shall not be so paid and instead shall be accumulated in an account on your behalf in the ETP Plan (as defined in Section 7, below) and held in the Energy Transfer Rabbi Trust (as defined in Section 8, below),
and such account shall be paid to you on the Initial Vesting Date. 

 In the event of (i) a change in control
(as defined in Section 1.409A-3(i)(5) of the Treasury Regulations) of SXL, (ii) a termination of your employment by SXL (directly or through action by Energy Transfer or any of its affiliates) without cause, (iii) your death, or
(iv) your Disability (as defined in Section 1.409A-3(i)(4) of the Treasury Regulations), in each case after the Initial Vesting Date and while you are employed by the Energy Transfer family of companies, all restricted units subject to the
Restricted Unit Award shall be immediately 100% vested. In addition, to the extent that you elect to terminate your employment with the Energy Transfer family of companies at any time after the three-year anniversary of the Closing Date, all
restricted units subject to the Restricted Unit Award shall be immediately 100% vested. 

  
 3 

	6.	Effective on the second day prior to the Closing Date (the “Waiver Date”) and except as provided in Section 9, you hereby unconditionally and irrevocably
waive any and all existing and future rights to the benefits and payments that you may be entitled to receive, and any change in control pension improvements, under the following plans (the “Sunoco Non-Account Balance Plans”):

  

	 	•	 	 Sunoco, Inc. Executive Retirement Plan; and 

  

	 	•	 	 Sunoco, Inc. Pension Restoration Plan. 

 You acknowledge that, as a result of your waiver in this Section 6, Sunoco is not required to fund the rabbi trust (the “Sunoco Rabbi Trust”) established pursuant to the Deferred
Compensation and Benefits Trust Agreement by and among Sunoco, The Bank of New York Mellon (f/k/a Mellon Trust of New England, N.A.) and Towers Watson Pennsylvania Inc. (f/k/a Towers, Perrin, Forster & Crosby, Inc.), as amended (the
“Sunoco Rabbi Trust Agreement”) with respect to any benefits on your behalf under the Sunoco Non-Account Balance Plans. For purposes of clarity, Sunoco remains obligated to fund the Sunoco Rabbi Trust on your behalf with respect to any
other plans referenced in the Sunoco Rabbi Trust Agreement. 
  

	7.	On the Waiver Date, ETP shall credit an amount equal to the present value of your accrued benefits, excluding any change in control pension improvements, under the
Sunoco Non-Account Balance Plans (the “Converted Benefit”) to an account established in your name and for your benefit under the Energy Transfer Partners Deferred Compensation Plan for Former Sunoco Executives (the “ETP Plan”).
The Converted Benefit shall equal $2,789,413. The ETP Plan shall provide that (i) as of the Closing Date, you will be 100% vested in the Converted Benefit and any investment earnings attributable thereto; (ii) you will accrue interest and
earnings in the ETP Plan account to which your Converted Benefit is credited commencing one week after the Closing Date; and (iii) the time and form of payment of your Converted Benefit and any investment earnings attributable thereto shall be
the same as the time and form of payment of your accrued benefits under the Sunoco Non-Account Balance Plans so as to avoid a violation of Section 409A of the Internal Revenue Code of 1986, as amended. The crediting of your account under the
ETP Plan shall be in full satisfaction of your rights under the Sunoco Non-Account Balance Plans. 

  

	8.	On or prior to the Waiver Date, Energy Transfer shall contribute an amount to a rabbi trust established by Energy Transfer (the “Energy Transfer Rabbi Trust”)
which is equal to the value of the Converted Benefit. 

  

	9.	In the event that the Merger is not consummated by November 1,2012, the parties shall be restored to their respective positions prior to this offer letter.
Accordingly, in such an event, (a) your waiver described in Section 6 is automatically revoked, and your pre-Merger benefits in the Sunoco Non-Account Balance Plans will be restored, (b) your benefit under the ETP Plan, as described
in Section 7, is automatically forfeited, and (c) Energy Transfer shall be entitled to recover any amounts contributed on your behalf to the Energy Transfer Rabbi Trust under Section 8. 

  
 4 

	10.	In addition to the initial Restricted Unit Award described in Section 4, you will be eligible to participate, on a discretionary basis, in the SXL LTIP which
allows for the grant of subsequent awards having such terms as determined by the Compensation Committee of the Board of SXL. As President and Chief Executive Officer of SXL, you would be eligible annually to receive annual unit awards with a value
equal to 200% to 300% of your annual salary provided, however, that the Board of Directors of SXL may decide, in its discretion, to provide a higher number (such awards are subject to a five year graded vesting period). As noted above, awards under
the SXL LTIP are discretionary. 

  

	11.	Upon your termination of employment with the Energy Transfer family of companies, you will be eligible for retiree medical benefits under the Sunoco, Inc. Retiree
Medical Program, subject to all of the terms and conditions of that Program. 

  

	12.	You will have the opportunity to participate in the employee benefit plans, including nonqualified deferred compensation, retirement, health and other welfare benefit
plans, offered to similarly situated executives of Energy Transfer. 

  

	13.	You will receive the same paid holidays as offered to similarly situated executives of Energy Transfer based on Energy Transfer’s Holiday Policy.

  

	14.	Vacation eligibility for the remainder of 2012 shall be the same as the vacation to which you were entitled as an SXL employee prior to the completion of the Merger.
You are able to use this vacation anytime during the calendar year; however, no more than 40 hours may be carried over to future years. 

  

	15.	Starting in 2013, your current vacation eligibility will be grandfathered; however, any increase in vacation eligibility will be subject to Energy Transfer’s
vacation policy. You will be given a Policy Manual that outlines Energy Transfer’s policies and procedures, including the applicable vacation policy. 

 In consideration this offer, please take note of and consider the following: 
  

	 	•	 	 Energy Transfer has a binding arbitration policy for its family of companies, that requires SXL and each employee to arbitrate any and all disputes
between SXL and an employee, arising out of or in any way related to an employee’s employment with SXL or termination of employment with SXL. Upon your acceptance of this offer, you will be given a copy of the binding arbitration policy and be
required to provide written acknowledgement of receipt of this policy. 

  

	 	•	 	 The employment relationship between you and the Energy Transfer family of companies shall be at-will. That means that either you or Energy Transfer may
terminate your employment relationship at any time with or without notice, with or without cause, and for any reason or for no reason. Statements in this offer letter or other documents do not constitute or imply an employment contract and should
not be relied upon by employees under any circumstances as altering or superseding the “at will” employment policy. The terms and conditions stated above constitute the entire offer of employment. Any promises, conditions, perquisites, or
statements made prior to this offer and not expressly stated within this offer of employment should not be considered binding upon Energy Transfer or any of its affiliated companies. 

  
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	 	•	 	 This offer letter highlights the benefit plans currently offered to SXL employees, but does not contain all of the details. The terms of the plan
documents govern the specifics of the plans and are available to you upon request. Energy Transfer or its affiliate) reserves the right to amend, modify, suspend or terminate any of the benefit plans at any time. Additionally, certain factors may
impact your eligibility to participate in certain compensation and benefits plans. These factors include, but are not limited to your compensation, position, beginning date of employment, hours worked, and prior or continued participation in another
employer’s plans. 

  

	 	•	 	 While you are employed with the Energy Transfer group of companies, you agree not to participate directly or indirectly in any endeavor that is similar
or competitive to the business or activity of Energy Transfer or its subsidiaries or affiliates, whether as a principal, consultant, advisor, officer or any similar capacity, unless specifically approved by Energy Transfer.

 Before accepting this offer of employment, you should consider its terms and conditions carefully. Energy Transfer
encourages you to visit with your family, financial advisor, attorney, and/or anyone else you may deem appropriate in making a decision. 
 If
you decide to accept this offer of continued employment, please sign and date (i) two copies of this offer letter, and return these two (2) original hard copies to Christopher Curia at 800 E. Sonterra Blvd., Suite 100, San Antonio, Texas
78258 or facsimile at 210-403-7531 on the Closing Date. 
  

	
	Sincerely,
	
	 /s/ Christopher R. Curia

	Christopher R. Curia
	SVP—Human Resources

 CONTINUED EMPLOYMENT ACCEPTANCE STATEMENT 
 I, Michael J. Hennigan, do hereby accept this offer of continued employment and acknowledge that I have read the above described offer letter. 
 I further certify that I have not signed an agreement of confidentiality, covenant not to compete, nor any other type of agreement with restrictive covenants of any kind or nature with any of my
employers, past or present, or any third parties, that would restrict, prevent, or otherwise preclude my employment with the Energy Transfer family of companies. 
  

			
	 /s/ Michael J. Hennigan
	 	 10-4-2012

	MICHAEL J. HENNIGAN	 	DATE

  
 6Sunoco Partners LLC Long-Term Incentive Plan

 Exhibit 10.4 

 
  

 
 SUNOCO PARTNERS LLC

 LONG-TERM INCENTIVE PLAN 
 Amended and restated as of October 24, 2012 
  

 
  

  
 Page 1 of 12

 SUNOCO PARTNERS LLC 

LONG-TERM INCENTIVE PLAN 

SECTION 1. Purpose of the Plan. 
 The Sunoco Partners LLC Long-Term Incentive Plan (the “Plan”) is intended to promote the interests of Sunoco Logistics Partners L.P., a Delaware limited partnership (the
“Partnership”), by providing to Eligible Recipients with superior performance incentive awards that are based on Units. The Plan is also intended to enhance the ability of the Company and its Affiliates to attract and retain employees
whose services are key to the growth and profitability of the Partnership, and to encourage them to devote their best efforts to the business of the Partnership, thereby advancing the Partnership’s interests. 

SECTION 2. Definitions. 
 As used in the
Plan, the following terms shall have the meanings set forth below: 
 2.1 “Affiliate” means, with respect to any
Person, any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct
or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 
 2.2 “Award” means a grant of one or more Options or Restricted Units pursuant to the Plan, and shall include any tandem DERs granted with respect to such Award. 

2.3 “Board” means the Board of Directors of the Company. 

2.4 “Cause” means: 
 (i) fraud or embezzlement on the part of the Participant; 
 (ii)
conviction of or the entry of a plea of nolo contendere by the Participant to any felony; 
 (iii) the
willful and continued failure or refusal by the Participant to perform substantially the Participant’s duties with the Company or an Affiliate thereof (other than any such failure resulting from incapacity due to physical or mental illness, or
death, or following notice of employment termination by the Participant for Good Reason) within thirty (30) days following the delivery of a written demand for substantial performance to the Participant by the Board, or any employee of the
Company or an Affiliate with supervisory authority over the Participant, that specifically identifies the manner in which the Board or such supervising employee believes that the Participant has not substantially performed the Participant’s
duties; or 
 (iv) any act of willful misconduct by the Participant which: 

(a) is intended to result in substantial personal enrichment of the Participant at the expense of the Partnership, the
Company, or any of their Affiliates; or 
 (b) has a material adverse impact on the business or reputation of the
Partnership, the Company, or any Affiliate thereof (such determination to be made by the Partnership, the Company or any such Affiliate in the good faith exercise of its reasonable judgment). 

  
 Page 2 of 12

 2.5 “Change of Control” means, and shall be deemed to have occurred upon
the occurrence of one or more of the following events: 
 (i) the consolidation, reorganization, merger or other
transaction pursuant to which more than 50% of the combined voting power of the outstanding equity interests in the Company cease to be owned by ETP and/or its Affiliates; 

(ii) a “Change in Control” of Energy Transfer Partners, L.L.C. under the ETP 2008 Long-Term Incentive Plan; or

 (iii) the general partner (whether the Company or any other Person) of the Partnership ceases to be an
Affiliate of ETP. 
 2.6 “Committee” means the Compensation Committee of the Board, such subcommittee thereof,
or such other committee of the Board as may be appointed from time to time to administer the Plan. 
 2.7
“Company” means Sunoco Partners LLC, a Pennsylvania limited liability company. 
 2.7 “DER” or
“Distribution Equivalent Right” means the contingent right, granted in tandem with a specific Restricted Unit, to receive an amount in cash equal to the cash distributions made by the Partnership with respect to a Unit during the
period such Restricted Unit is outstanding. 
 2.8 “Director” means a member of the Board who is not an
Employee. 
 2.9 “Eligible Recipient” has the meaning set forth in Section 5. 

2.10 “Employee” means an employee of the Company or one or more of its Affiliates. 

2.11 “ETP” means Energy Transfer Partners, L.P., a Delaware limited partnership and the owner of a 100% membership
interest in the Company. 
 2.12 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 2.13 “Fair Market Value” means, as of any date and in respect of any Unit, the opening price of a Unit on
such date (which price shall be the closing price of a Unit on the previous trading day, as reflected in the consolidated trading tables of The Wall Street Journal or any other publication selected by the Committee). If there is no sale of Units on
the New York Stock Exchange for more than ten (10) days immediately preceding such date, or if deemed appropriate by the Committee for any other reason, the Fair Market Value of such Units shall be as determined in good faith by the Committee
in such other manner as it may deem appropriate. 
 2.14 “Member” means, as of any date, any Person that has
executed the limited liability company operating agreement of the Company (the “LLC Agreement”) as a member of the Company, and thereafter been admitted to the Company as a member as provided in the LLC Agreement, but such term does
not include any Person who has ceased to be a member in the Company. 
 2.15 “Option” means on option to
purchase Units granted under the Plan. 
 2.16 “Participant” means any Eligible Recipient granted an Award under
the Plan. 
 2.17 “Person” means an individual or a corporation, limited liability company, partnership, joint
venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity. 

2.18 “Qualifying Termination” means, with respect to the employment of a Participant, any of the following: 

(a) a termination of employment by the Company or one of its Affiliate within two (2) years after a Change of
Control, other than for Cause, death or disability; or 
 (b) a termination of employment by the Participant
within two (2) years after a Change of Control for one or more of the following reasons: 

  
 Page 3 of 12

 (1) the material reduction of the Participant’s authorities, duties, or
responsibilities as an executive officer and/or officer of the Company or one of its Affiliate from those in effect as of ninety (90) calendar days prior to a Change in Control, other than (i) an insubstantial reduction, or (ii) an
inadvertent reduction that is remedied by the Company or one of its Affilaites promptly after receipt of notice thereof given by the Participant; provided, however, that any reduction in the foregoing resulting from the acquisition of the Company or
one of its Affiliates and its existence as a subsidiary or division of another entity shall not be sufficient to constitute a Qualifying Termination; or 
 (2) with respect to any Participant who is a member of the Company’s board of directors immediately prior to the Change of Control, any failure of the members of the Company to elect or re-elect, or
of the Company to appoint or re-appoint, the Participant as a member of such board of directors; 
 (3) a
reduction by the Company or one of its Affiliate,in either the Participant’s annual base salary or guideline (target) bonus as in effect immediately prior to the Change of Control; or 

(4) the failure of the Company or one of its Affiliates to provide the Participant with employee benefits and incentive
compensation opportunities that: 
 (i) are not less favorable than those provided to other executives who
occupy the same grade level at the Company one at one of its Affiliates as the Participant, or if the grade levels of the Company or its Affiliates are no longer applicable, to a similar peer group of the executives of the Company; and 

(ii) provide the Participant with benefits that are at least as favorable, measured separately for: 

(A) incentive compensation opportunities, 
 (B) savings and retirement benefits, 
 (C) welfare benefits, and 

(D) fringe benefits and vacation 
 as the most favorable of each such category of benefit in effect for the Participant at any time during the 120-day period immediately preceding the Change of Control; or 

(5) the Company or one of its Affiliates requires the Participant to be based anywhere other than the Participant’s
present work location or a location within thirty-five (35) miles from the present location; or the Company or one of its Affiliates requires the Participant to travel on Company business to an extent substantially more burdensome than such
Participant’s travel obligations during the period of twelve (12) consecutive months immediately preceding the Change of Control; 
 provided, however, the Participant may not terminate under this subparagraph (b) unless he or she has given written notice delivered to the Partnership, the Company or their Affiliates, as
appropriate, of the action or inaction giving rise to such termination, such notice to state with specificity the nature of the breach, failure or refusal, and such action or inaction is not corrected within thirty (30) days thereafter;
provided further that such termination shall not be deemed to be a Qualifying Termination unless the termination occurs within 120 days after the occurrence of the event or events constituting the reason for the termination; or 

(c) before a Change of Control, a termination of employment by the Company or one of its Affiliates, other than a
termination for Cause, or a termination of employment by the Participant for one of the reasons set forth in (b) above, if the affected Participant can demonstrate that such termination or circumstance in (b) above leading to the
termination: 
 (1) was at the request of a third party with which the Company had entered into negotiations or an agreement
with regard to a Change of Control; or 

  
 Page 4 of 12

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

provided, however, that in either such case, a Change of Control actually occurs within one (1) year following the Employment
Termination Date. 
 Any good faith determination made by the Participant that the Participant has experienced a Qualifying Termination pursuant
to Section 2.18(b) shall be conclusive. A Participant’s mental or physical incapacity following the occurrence of an event described above in (b) above shall not affect the Participant’s ability to have a Qualifying Termination.
As used in this Section 2.18, a “termination of employment” means a separation from service as defined in Code Section 409A and the regulations issued thereunder. 

2.17 “Restricted Period” means the period established by the Committee with respect to an Award during which the Award
either remains subject to forfeiture or is not exercisable by the Participant. 
 2.18 “Restricted Unit” means a
phantom, or notional, unit granted under the Plan which is equivalent in value and in distribution rights to a Unit and which, upon vesting, entitles the Participant to receive a Unit or its Fair Market Value in cash, as determined in the sole
discretion of the Committee. 
 2.19 “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange
Act, or any successor rule or regulation thereto as in effect from time to time. 
 2.20 “SEC” means the
Securities and Exchange Commission, or any successor thereto. 
 2.21 “Specified Employee” shall mean each of
the following: the Chief Executive Officer; the President and Chief Operating Officer; the Chief Financial Officer; the Vice President, Operations; the Vice President, Business Development; the Vice President, Lease Acquisition and Marketing; the
Vice President, General Counsel and Secretary; the Vice President, Human Resources and Administration; the Chief Information Officer; the Treasurer; and the Controller (designated pursuant to the election of an alternative method specified in
Treasury Regulation Sections 1.409A-1(i)(5) and 1.409A-1(i)(8)). 
 2.22 “Unit” means a common unit of the
Partnership. 
 SECTION 3. Administration. 
 The Plan shall be administered by the Committee. Annual grant levels for Participants will be recommended to the Committee by the Chief Executive Officer. Subject to the terms of the Plan and applicable
law, and in addition to other express powers and authorizations conferred on the Committee by the Plan, the Committee shall have full power and authority to: 
 (i) designate Eligible Recipients and Participants; 
 (ii)
determine the type or types of Awards to be granted to a Participant; 
 (iii) determine the number of Units to
be covered by Awards; 
 (iv) determine the terms and conditions of any Award; 

(v) determine whether, to what extent, and under what circumstances Awards may be settled, exercised, canceled, or
forfeited; 
 (vi) interpret and administer the Plan and any instrument or agreement relating to an Award made
under the Plan; 
 (vii) establish, amend, suspend, or waive such rules and regulations and appoint such agents
as it shall deem appropriate for the proper administration of the Plan; and 
 (viii) make any other
determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. 

  
 Page 5 of 12

 Unless otherwise expressly provided in the Plan, all designations, determinations,
interpretations, and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive, and binding upon all Persons, including the Company,
the Partnership, any Affiliate, any Participant, and any beneficiary of any Award. 
 Subject to the following and any
applicable law, the Committee, in its sole discretion, may delegate any or all of its powers and duties under the Plan to the Chief Executive Officer of the Company, including the power to grant Awards under the Plan, provided the Chief Executive
Officer is also a member of the Board, subject to such limitations on such delegated powers and duties as the Committee may impose, if any. Upon any such delegation all references in the Plan to the “Committee”, other than in
Section 7 (“Amendment and Termination”), shall be deemed to include the Chief Executive Officer; provided, however, that such delegation shall not limit the Chief Executive Officer’s right to receive Awards under the Plan.
Notwithstanding the foregoing, the Chief Executive Officer may not grant Awards to, or take any action with respect to any Award previously granted to, a person who is an officer subject to Rule 16b-3 or a member of the Board. 

SECTION 4. Units Available for Awards. 
 4.1 Units Available. Subject to adjustment as provided in Section 4.3 and this Section 4.1, the number of Units with respect to which Awards may be granted under the Plan is one million
two hundred fifty thousand (1,250,000). If any Award is forfeited or otherwise terminates or is canceled without the delivery of Units, then the Units covered by such Award, to the extent of such forfeiture, termination, or cancellation, shall again
be Units with respect to which Awards may be granted. 
 4.2 Sources of Units Deliverable Under Awards. Any Units
delivered pursuant to an Award shall consist, in whole or in part, of Units acquired in the open market, from any Affiliate, the Partnership or any other Person, or any combination of the foregoing, as determined by the Committee in its discretion.

 4.3 Adjustments. In the event of any change in the outstanding Units of the Partnership by reason of any distribution
(whether in the form of cash, Units, other securities, or other property), split, reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Units or other securities of the Partnership,
issuance of warrants or other rights to purchase Units or other securities of the Partnership, or other similar transaction or event, an equitable and proportionate anti-dilution adjustment will be made to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan, and to offset any resultant change in the price per Unit and preserve the intrinsic value of Options, Restricted Units and other awards theretofore granted under the Plan.
Such mandatory adjustment may include a change in one or more of the following: 
 (i) the number and type of
Units (or other securities or property) with respect to which Awards may be granted; 
 (ii) the number and type
of Units (or other securities or property) subject to outstanding Awards; 
 (iii) the purchase price per Unit
purchasable under outstanding Options; 
 (iv) the number of Restricted Units outstanding; and 

(v) other similar matters. 
 SECTION 5. Eligibility. 
 Persons who are eligible to be designated as a
Participant and receive an Award under the Plan are (i) any Employee or officer of the Company or one of its Affiliates who perform services for the benefit of the Partnership and/or one or more of its subsidiaries and (ii) any Director of
the Company (each, an “Eligible Recipient”). 

  
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 SECTION 6. Awards. 
 6.1 Options. The Committee shall have the authority to determine the Eligible Recipients to whom Options will be granted, the number of Units to be covered by each Option, the purchase price
therefor and the conditions and limitations applicable to the exercise of the Option, including the following terms and conditions and such additional terms and conditions, as the Committee shall determine, that are not inconsistent with the
provisions of the Plan. 
 (i) Exercise Price. The purchase price per Unit purchasable under an Option
shall be determined by the Committee at the time the Option is granted but shall not be less than the closing price of a Unit on the date the Option is granted, as reflected 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). If there is no sale of shares of Units on the New York Stock Exchange for more than ten (10) days immediately preceding such
date, the applicable purchase price per Unit purchasable under an Option shall be as determined by the Committee in such other manner as it may deem appropriate. 

(ii) Time and Method of Exercise. The Committee shall determine the Restricted Period, i.e., the time or times at
which an Option may be exercised in whole or in part, and the method or methods by which payment of the exercise price with respect thereto may be made or deemed to have been made which may include, without limitation, cash, check acceptable to the
Company, a “cashless-broker” exercise (through procedures approved by the Company), other securities or other property, a note from the Participant (in a form acceptable to the Company), or any combination thereof, having a Fair Market
Value on the exercise date equal to the relevant exercise price. 
 (iii) Forfeiture. Except as otherwise
provided in the terms of the Option grant, upon termination of a Participant’s employment with the Company or one of its Affiliates, or membership on the Board, whichever is applicable, for any reason (other than permanent disability, or
approved leave of absence) during the applicable Restricted Period, all Options shall be forfeited by the Participant, unless otherwise provided in a written employment agreement (if any) between the Participant and the Company or one or more of its
Affiliates; provided, however, that the Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant’s Options. 
 6.2 Restricted Units. The Committee shall have the authority to determine the Eligible Recipients to whom Restricted Units shall be granted, the number of Restricted Units to be granted to each
such Eligible Recipient, the duration of the Restricted Period, the conditions under which the Restricted Units may become vested or forfeited, and such other terms and conditions as the Committee may establish respecting such Awards, including
whether DERs are granted with respect to such Restricted Units. The Committee may establish, at the time of the grant of Restricted Units, other conditions that must be met for payout to occur. These conditions shall be set forth in the
Committee’s resolution granting the Restricted Units and in the applicable agreements with Participants. 

(i) DERs. To the extent provided by the Committee, in its discretion, a grant of Restricted Units may include a
tandem DER grant, which may provide that such DERs shall be paid directly to the Participant, be credited to a bookkeeping account (with or without interest in the discretion of the Committee) subject to the same restrictions as the tandem Award, or
be subject to such other provisions or restrictions as determined by the Committee in its discretion. Payment of DERs under a tandem DER grant made pursuant to this Section 6.2(i) shall be made as determined by the Committee in its discretion.

  
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 (ii) Forfeiture. Except as otherwise provided in the terms of the
Award agreement, upon termination of a Participant’s employment with the Company or one of its Affiliates or membership on the Board, whichever is applicable, for any reason (other than permanent disability, or approved leave of absence) during
the applicable Restricted Period, all Restricted Units shall be forfeited by the Participant, unless otherwise provided in a written employment agreement (if any) between the Participant and the Company or one or more of its Affiliates; provided,
however, that the Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant’s Restricted Units. 
 (iii) Lapse of Restrictions. Upon, or as soon as reasonably practicable following, the vesting of each Restricted Unit, but within two and one-half (2-1/2) months following the calendar year in
which such Restricted Unit becomes nonforfeitable, the Participant shall be entitled to receive from the Company, and the Company shall pay to the Participant, one Unit or its Fair Market Value, in cash, as determined by the Committee, subject to
the provisions of Section 8.2. 
 6.3 General. 

(i) Awards May Be Granted Separately or Together. Awards may, in the discretion of the Committee, be granted either
alone or in addition to, in tandem with, or in substitution for any other Award granted under the Plan or any award granted under any other plan of the Company or any Affiliate. Awards granted in addition to or in tandem with other Awards or awards
granted under any other plan of the Company or any Affiliate may be granted either at the same time as or at a different time from the grant of such other Awards or awards. 

(ii) Limits on Transfer of Awards. 

(a) Except as provided in (b) below: 

(1) no Award and no right under any such Award may be assigned, alienated, pledged, attached, sold or otherwise
transferred or encumbered by a Participant and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; 

(2) each Option shall be exercisable only by the Participant during the Participant’s lifetime, or by the person to
whom the Participant’s rights shall pass by will or the laws of descent and distribution; and 
 (b) To the
extent specifically provided by the Committee with respect to an Option grant, an Option may be transferred by a Participant without consideration to immediate family members or related family trusts, limited partnerships or similar entities or on
such terms and conditions as the Committee may from time to time establish. In addition, Awards may be transferred by will and the laws of descent and distribution. 

(iii) Term of Awards. The term of each Award shall be for such period as may be determined by the Committee.

 (iv) Unit Certificates. All certificates for Units or other securities of the Partnership delivered
under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the SEC, any
stock exchange upon which such Units or other securities are then listed, and any applicable federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such
restrictions. 
 (v) Consideration for Grants. Awards may be granted for such consideration as the
Committee determines including, without limitation, services or such minimal cash consideration as may be required by applicable law. 

  
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 (vi) Delivery of Units or other Securities and Payment by Participant of
Consideration. Notwithstanding anything in the Plan or any grant agreement to the contrary, delivery of Units pursuant to the exercise or vesting of an Award may be deferred for any period during which, in the good faith determination of the
Committee, the Company is not reasonably able to obtain Units to deliver pursuant to such Award without violating the rules or regulations of any applicable law or securities exchange. No Units or other securities shall be delivered pursuant to any
Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award agreement (including, without limitation, any exercise price or any tax withholding) is received by the Company. Such payment may be made by
such method or methods and in such form or forms as the Committee shall determine, including, without limitation, cash, other Awards, withholding of Units, cashless broker exercises with immediate sale, or any combination thereof; provided, however,
that the combined value, as determined by the Committee, of all cash and cash equivalents and the Fair Market Value of any such Units or other property so tendered to the Company, as of the date of such tender, is at least equal to the full amount
required to be paid to the Company pursuant to the Plan or the applicable Award agreement. 
 (vii) Change of
Control. 
 (a) Payment of Restricted Units. In the event of a Qualifying Termination, Restricted
Units will be paid to the Participant no later than the earlier of ninety (90) days following the date of occurrence of such Qualifying Termination or two and one-half (2-1/2) months following the end of the calendar year in which occurs the
date of such Qualifying Termination, regardless of whether the applicable performance goals or targets have been met. 
 For a Qualifying Termination occurring within the first consecutive twelve-month period following the date of grant, the number of performance-based Restricted Units paid out with regard to such
grant shall be equal to the total number of Restricted Units outstanding in such grant as of the Qualifying Termination, not adjusted for any performance factors. 

For a Qualifying Termination occurring after the first consecutive twelve-month period following the date of grant,
the number of performance-based Restricted Units paid out with regard to such grant shall be the greater of: 

(a) the total number of Restricted Units outstanding in such grant as of the Qualifying Termination, not adjusted for any
performance factors, or 
 (b) the total number of such Restricted Units outstanding in such grant, multiplied by
the applicable performance factors related to the Partnership’s actual performance immediately prior to the Qualifying Termination. 
 In the case of an award of Restricted Units conditioned upon the Participant’s continued employment, the total number of Restricted Units outstanding in such grant as of the Qualifying Termination
shall be paid to the Participant. 
 The Participant’s Restricted Units shall be payable to the Participant
in cash or Units, as determined by the Committee, as follows: 
 (a) if the Participant is to receive Units, the
Participant will receive the total number of Units stated above in this Section 6.3(vii); or 
 (b) if the
Participant is to receive cash, the Participant will be paid an amount in cash equal to the number of Units stated above in this Section 6.3(vii), multiplied by the Fair Market Value per Unit. Such amount will be reduced by the applicable
federal, state and local withholding taxes due. 
 (b) Payment of Distribution Equivalents. On or before
the earlier of the ninetieth (90th) day following the date of occurrence of such Qualifying Termination or the day that is two and one-half (2-1/2) months following the end of the calendar year in which occurs the date of such Qualifying
Termination, the Participant will be paid an amount in cash equal to the value of the applicable DERs on the number of Units being paid pursuant to this Section 6.3(vii) for the time period immediately preceding the Qualifying Termination.

  
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 (c) Options. Notwithstanding any provisions to the contrary in
agreements evidencing Options granted thereunder, or in this Plan, each outstanding Option shall become immediately and fully exercisable upon the occurrence of any Qualifying Termination. 

6.4 Definition of Termination of Employment. For purposes of this Section 6, termination of a Participant’s employment,
and any and all other references to a Participant’s employment being terminated (“Termination of Employment”), shall mean with respect to a Participant such Participant’s separation from service as defined in Internal
Revenue Code (“Code”) Section 409A and the regulations issued thereunder, from the Company or one of its Affiliates and a Participant’s Employment Termination Date shall mean the date that a Participant separates from
service as defined in Code Section 409A and the regulations issued thereunder. For clarity, an Employee’s employment with respect to the Company or one of its Affiliates shall not be deemed terminated unless and until such Employee is no
longer employed by any one of the Company or its Affiliates, and no transfers of employment within the Company or its Affiliates shall be deemed a termination under this Plan Notwithstanding any other provisions of this Section 6, payment of
any Restricted Unit (and related DER) to any Participant who is a Specified Employee on account of such Participant’s Termination of Employment shall be made as follows: Restricted Units that are scheduled to be paid for the period which begins
on such Participant’s Employment Termination Date and ends on the date six months from such Participant’s Employment Termination Date, 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 Employment Termination Date. In the case of payments delayed pursuant to this Section 6.4, at the time of a Participant’s Termination of Employment, at the election of the Participant, all or a portion of a
Participant’s Restricted Units may be converted to the cash equivalent Fair Market Value of such units (“Cash Units”). Simple interest will be paid on Cash Units delayed hereunder from the date of such conversion to the date of
actual payment, at a rate equal to the prime rate of Citibank, N.A. as in effect from time to time after such due date. With respect to any Restricted Units that are not converted to Cash Units, and which include a tandem DER, the provisions of
Section 6.2(i) will continue to apply to such Restricted Units during the period that payment of Restricted Units are delayed pursuant to this Section 6.4, with payment of all such DERs made at the time of payment of the associated
Restricted Unit hereunder. 
 SECTION 7. Amendment and Termination. 
 Except to the extent prohibited by applicable law and unless otherwise expressly provided in an Award agreement or in the Plan: 

(i) Amendments to the Plan. Except as required by applicable law or the rules of the principal securities exchange
on which the Units are traded and subject to Section 7(ii) below, the Board or the Committee may amend, alter, suspend, discontinue, or terminate the Plan in any manner; provided, however, that neither the Board nor the Committee may increase
the number of Units available for Awards under the Plan, without the express prior written consent of the Members of the Company. 
 (ii) Amendments to Awards. The Committee may waive any conditions or rights under, amend any terms of, or alter any Award theretofore granted, provided no change, other than pursuant to
Section 7(iii), in any Award shall materially reduce the benefit to Participant without the consent of such Participant. 
 (iii) Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. In order to prevent dilution or enlargement of the benefits or potential benefits intended to be made
available under the Plan, adjustments will be made in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4.3 of the
Plan) affecting the Partnership or the financial statements of the Partnership, or of changes in applicable laws, regulations, or accounting principles. 

  
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 SECTION 8. General Provisions. 

8.1 No Rights to Awards. No Person shall have any claim to be granted any Award, and there is no obligation for
uniformity of treatment of Participants. The terms and conditions of Awards need not be the same with respect to each Participant. 
 8.2 Withholding. The Company or any Affiliate is authorized to withhold from any Award, from any payment due or transfer made under any Award or from any compensation or other amount owing to a
Participant the amount (in cash, Units, other securities, Units that otherwise would be issued pursuant to such Award or other property) of any applicable taxes payable in respect of the grant of an Award, its exercise, the lapse of restrictions
thereon, or any payment or transfer under an Award or under the Plan and to take such other action as may be necessary in the opinion of the Company to satisfy its withholding obligations for the payment of such taxes. 

8.3 No Right to Employment. The grant of an Award shall not be construed as giving a Participant the right to be
retained in the employment of the Company or any of its Affiliates or to remain on the Board, as applicable. Further, the Company or its Affiliate may at any time dismiss a Participant from employment, free from any liability or any claim under the
Plan, unless otherwise expressly provided in the Plan or in any Award agreement. 
 8.4 Governing Law. THE
VALIDITY, CONSTRUCTION, AND EFFECT OF THE PLAN AND ANY RULES AND REGULATIONS RELATING TO THE PLAN SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA AND APPLICABLE FEDERAL LAW. 

8.5 Severability. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or
unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if
it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan
and any such Award shall remain in full force and effect. 
 8.6 Other Laws. The Committee may refuse to
issue or transfer any Units or other consideration under an Award if, in its sole discretion, it determines that the issuance or transfer of such Units or such other consideration might violate any applicable law or regulation, the rules of the
principal securities exchange on which the Units are then traded, or entitle the Partnership or an Affiliate to recover the entire then Fair Market Value thereof under Section 16(b) of the Exchange Act, and any payment tendered to the Company
by a Participant, other holder or beneficiary in connection with the exercise of such Award shall be promptly refunded to the relevant Participant, holder or beneficiary. 

8.7 No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or
separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other Person. To the extent that any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an
Award, such right shall be no greater than the right of any general unsecured creditor of the Company or any Affiliate. 
 8.8 No Fractional Units. No fractional Units shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash, other securities, or other property
shall be paid or transferred in lieu of any fractional Units or whether such fractional Units or any rights thereto shall be canceled, terminated, or otherwise eliminated. 

  
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 8.9 Headings. Headings are given to the Sections and subsections of
the Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. 

8.10 Facility Payment. Any amounts payable hereunder to any person under legal disability or who, in the judgment
of the Committee, is unable to properly manage his financial affairs, may be paid to the legal representative of such person, or may be applied for the benefit of such person in any manner which the Committee may select, and the Company shall be
relieved of any further liability for payment of such amounts. 
 8.11 Gender and Number. Words in the
masculine gender shall include the feminine and the neuter, the plural shall include the singular and the singular shall include the plural. 

SECTION 9. Term of the Plan. 
 The Plan
shall be effective on the date of its approval by the Board and shall continue until the date terminated by the Board or Units are no longer available for grants of Awards under the Plan, whichever occurs first. However, unless otherwise expressly
provided in the Plan or in an applicable Award Agreement, any Award granted prior to such termination, and the authority of the Board or the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any
conditions or rights under such Award, shall extend beyond such termination date. 

  
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