Document:

Form of Stock Option and Limited Rights Agreement

 Exhibit 10.8 
  
 [Month, Year] Award 
  
 STOCK OPTION AND LIMITED RIGHTS AGREEMENT 
 Under the 
 SUNOCO, INC. LONG-TERM PERFORMANCE ENHANCEMENT PLAN II 
  
 This Stock Option and Limited Rights Agreement (the “Agreement”)
entered into as of
                                        
(the “Agreement Date”), by and between Sunoco, Inc. (“Sunoco”) and
                                        ,
who is an employee of Sunoco or one of its Affiliates (the “Participant”); 
  
 WITNESSETH: 
  
 WHEREAS, in
order to make certain awards to key employees and directors of Sunoco and its Affiliates, Sunoco maintains the Sunoco, Inc. Long-Term Performance Enhancement Plan II (the “Plan”), approved by shareholders at Sunoco’s 2001 Annual
Meeting; and 
  
 WHEREAS, the Plan is administered by a Committee
(the “Committee”) appointed by Sunoco’s Board of Directors and consisting of at least two (2) members of such Board, each of whom meets the applicable requirements of Section 16 of the Securities Exchange Act of 1934, as
amended, and Section 162(m) of the Internal Revenue Code; and 
  
 WHEREAS, the Board and/or Committee has determined to make the following award to the Participant pursuant to the terms and conditions of the Plan: 
  
 (1) an option to purchase shares of common stock of Sunoco; and 
  
 (2) certain limited appreciation rights in tandem with such option; and 
  
 WHEREAS, the Participant has determined to accept such award; 
  
 NOW, THEREFORE, Sunoco and the Participant each intending to be legally bound
hereby, agree as follows: 
  
 ARTICLE I 
 OPTION TO PURCHASE COMMON STOCK 
  

	1.1	Identifying Provisions. For purposes of this Agreement, the following terms shall have the following respective meanings: 

  

							
	(a)	  	Participant	  	: 	  	 
				
	(b)	  	Date of Grant	  	: 	  	 
				
	(c)	  	Shares Subject To Option	  	: 	  	 
				
	(d)	  	Option Price (per share)	  	: 	  	 
				
	(e)	  	Earliest Exercise Date	  	: 	  	 

  
 Any initially
capitalized terms and phrases used in this Agreement but not otherwise defined herein, shall have the respective meanings ascribed to them in the Plan. 
  

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	1.2	Award of Stock Option. Subject to the terms and conditions of the Plan and this Agreement, the Participant is hereby granted an option (the “Stock Option”) to
purchase up to the number of Shares Subject To Option of Sunoco’s common stock (the “Common Stock”), at the Option Price set forth herein at Section 1.1. The Stock Option is not intended to be, and shall not be treated as, an
“incentive stock option” as such term is defined under Section 422 of the Internal Revenue Code of 1986, as amended. 

  

	1.3	Exercisability. The Stock Option shall become exercisable in whole or in part with respect to all of the shares of Common Stock subject thereto on the two-year anniversary of
the Date of Grant; provided, however, that, upon the occurrence of any Change in Control, the Stock Option shall become immediately and fully exercisable, notwithstanding any provision to the contrary in this Agreement or in the Plan, and
without regard to any period of time then elapsed from the Date of Grant. 

  

	1.4	Term. The Stock Option shall not be exercisable, either in whole or in part, on or after the Expiration Date. Unless fully exercised by the Expiration Date, the Stock Option
shall automatically be canceled to the extent not yet exercised. The Expiration Date shall be the earliest to occur of: 

  

	 	(a)	                            ,
which is the ten-year anniversary of the Date of Grant; or 

  

	 	(b)	the sixty-month anniversary of the date of termination of the Participant’s employment, if such termination occurs by reason of: 

  

	 	(1)	retirement or permanent disability (as each is determined by the Committee); or 

  

	 	(2)	death; or 

  

	 	(c)	the 90-calendar day anniversary of the date of termination of the Participant’s employment, other than for Just Cause, as defined in the Plan. 

  
 Notwithstanding anything herein to the contrary, however, the Stock Option
will be canceled immediately where the Participant’s employment has been terminated at any time for Just Cause. 
  

	1.5	Method of Exercising Stock Option. 

  

	 	(a)	The Stock Option may be exercised from time to time in whole or in part, by written notice delivered to and received by Sunoco prior to the Expiration Date, so long as the
Participant is in compliance with the Company’s insider trading policy and the pre-clearance process. This notice must: 

  

	 	(1)	be signed by the Participant; 

  

	 	(2)	state the Participant’s election to exercise the Stock Option; 

  

	 	(3)	specify the number of whole shares of Common Stock with respect to which the Stock Option is being exercised; 

  

	 	(4)	be accompanied by a check payable to Sunoco, in the amount of the full Option Price for the number of shares purchased. Alternatively, the Participant may pay all or a portion of
the Option Price by: 

  

	 	(i)	 delivering to Sunoco shares of previously owned Common Stock having an aggregate Fair Market Value (valued as of the date of exercise) equal to the amount of cash
that would otherwise be required, in which event, the stock certificates evidencing the shares so to be used shall accompany the notice of exercise and shall be duly endorsed or 

  

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 accompanied by duly executed stock powers to transfer the same to Sunoco; provided, however, that
before they may be used as payment of the Option Price, shares of Common Stock issued under: 
  

	 	(a)	the Plan, 

  

	 	(b)	the Sunoco, Inc. Executive Long-Term Stock Investment Plan, and/or 

  

	 	(c)	the Sunoco, Inc. Long-Term Performance Enhancement Plan, 

  

	 	must have been held by the Participant at least six (6) months. 

  

	 	(ii)	by authorizing a third party to sell a sufficient portion of the shares of Common Stock acquired upon exercise of the Stock Option and remit to Sunoco a sufficient portion of the
sale proceeds to pay the entire Option Price and tax withholding resulting from such exercise. 

  

	 	(b)	As soon as practicable after Sunoco receives such notice and payment, and following receipt from the Participant of payment for any taxes which Sunoco is required by law to withhold
by reason of such exercise, Sunoco will deliver to the Participant either: 

  

	 	(1)	a certificate or certificates for the shares of Stock so purchased; or 

  

	 	(2)	other evidence of the appropriate registration of such shares on Sunoco’s books and records. 

  

	 	(c)	Notwithstanding the foregoing, and at the discretion of the Committee, any Participant subject to minimum stock ownership guidelines (as established from time to time by the
Committee or Sunoco), but failing to meet the applicable ownership requirement within the prescribed time period may, upon exercise of the Stock Option, receive shares of Common Stock subject to the following restrictions which shall remain in place
until compliance with the ownership guidelines are attained: 

  

	 	(1)	The number of shares subject to the restrictions shall be equal to the total number of shares received in the exercise of the Stock Option, minus the sum of:

  

	 	(i)	to the extent that shares received upon the exercise of the Stock Option are used to pay the Stock Option Price, the number of shares which have a Fair Market Value on the date of
the Stock Option exercise equal to the total amount paid for all the shares received in the Stock Option exercise; and 

  

	 	(ii)	to the extent that shares received upon exercise of the Stock Option are used to pay taxes and brokerage fees, the number of shares which have a Fair Market Value on the date of the
Stock Option exercise equal to the applicable federal, state, and local withholding tax on the total Stock Option exercise and any brokerage commission or interest charges, if applicable to the exercise. 

  

	 	(2)	Other than transfers to family members or trusts that are permitted in accordance with the applicable stock ownership guidelines, and that will not result in a reduction in the
level of ownership attributable to the Participant under such guidelines, the Participant shall be prohibited from effecting the sale, exchange, transfer, pledge, hypothecation, gift or other disposition of such shares of Common Stock until the
earlier of: 

  

	 	(i)	attainment of compliance with the applicable stock ownership guidelines; 

  

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	 	(ii)	the Participant’s death, retirement, or permanent disability (as determined by the Committee); 

  

	 	(iii)	occurrence of the Participant’s Employment Termination Date, as defined in the Plan, for any reason other than Just Cause. 

  
 Notwithstanding the foregoing, six (6) months after the exercise of
the Stock Option, such shares of Common Stock may be used as payment of the Option Price of shares issued upon the exercise of other Stock Options. However, the shares will be issued as restricted shares. 
  

	 	(3)	The restrictions will apply to any new, additional or different securities the Participant may become entitled to receive with respect to the shares by virtue of a stock split or
stock dividend or any other change in the corporate or capital structure of Sunoco. 

  

	 	(d)	Until the restrictions described in Section 1.5(c) above lapse, the shares will be held in book-entry form and appropriate notation of these restrictions will be maintained in
the records of Sunoco’s transfer agent and registrar. Any share certificate representing such shares will bear a conspicuous legend evidencing these restrictions, and Sunoco may require the Participant to deposit the share certificate with
Sunoco or its agent, endorsed in blank or accompanied by a duly executed irrevocable stock power or other instrument of transfer. 

  

	1.6	Termination of Employment. 

  

	 	(a)	Retirement, Permanent Disability, or Death. Upon termination of the Participant’s employment by reason of retirement, permanent disability or death (as determined
by the Committee), all unvested stock options shall continue to vest and all vested Stock Options shall continue to be outstanding. The Participant (or in the case of death, the Participant’s estate, or any person who acquires the right to
exercise the Stock Option by bequest or inheritance or otherwise by reason of Participant’s death) may, within sixty (60) months from the date of termination, exercise the Stock Option, to the extent that it is exercisable during the
sixty-month period. At the end of the sixty-month period, all unexercised stock options shall terminate. 

  

	 	(b)	Other. Except as provided under Section 1.6(a) above, or except as otherwise determined by the Committee, upon termination of a Participant’s employment:

  

	 	(1)	on or prior to the two-year anniversary of the Date of Grant, (i.e., while the Stock Option remains unvested), then the Stock Option shall be canceled automatically upon
termination of the Participant’s employment; and 

  

	 	(2)	after the two-year anniversary of the Date of Grant, (i.e., once the Stock Option has vested), then the Stock Option shall be canceled as follows: 

 

	 	(A)	immediately, in the case of the Participant terminated by Sunoco or one of its Affiliates for Just Cause; or 

  

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	 	(B)	upon the expiration of ninety (90) calendar days following the date of termination of the Participant’s employment, other than for Just Cause; 

  
 provided, however, that the Limited Rights awarded in
tandem with such Stock Option shall not terminate and such Limited Rights shall remain exercisable during the Exercise Period for any Participant whose employment relationship with Sunoco or one of its Affiliates has been terminated as a result of
any Qualifying Termination. 
  
 Under no circumstances shall the
exercise period set forth in this Section 1.6 extend to or beyond the Expiration Date. 
  

	1.7	Reduction in Number of Shares Subject to Stock Option. Pursuant to Article II of this Agreement, upon the exercise of one or more Limited Rights, which are related to this
Stock Option, and which have been awarded to the Participant under the Plan, the number of Shares Subject To Option shall be reduced on a one-for-one basis. 

  
 ARTICLE II 
 LIMITED RIGHTS 
  

	2.1	Grant of Limited Rights. Subject to the terms and conditions of the Plan and this Agreement, and effective as of the date hereof, Sunoco hereby grants to the Participant a
number of Limited Rights equal to the number of Shares Subject To Option set forth in Section 1.1. Each such Limited Right shall be related on a one-for-one basis to each share of Common Stock which is subject to the related Stock Option
hereunder. 

  

	2.2	Exercisability. Limited Rights, which vest immediately upon grant, may be exercised ONLY during the period of seven (7) months following the date of a Change in Control.

  

	2.3	Term. The Limited Rights Expiration Date shall be the earliest to occur of: 

  

	 	(a)	                                      
  , which is the ten-year anniversary of the Date of Grant; or 

  

	 	(b)	the six-month anniversary of the date of termination of Participant’s employment, if such termination occurs by reason of: 

  

	 	(1)	retirement or permanent disability (as each is determined by the Committee); or 

  

	 	(2)	death. 

  
 Limited Rights shall not be exercisable, either in whole or in part, on or after the Limited Rights Expiration Date. Unless fully exercised by the Limited Rights Expiration Date, the Limited Rights shall automatically
be canceled to the extent not yet exercised. 
  

	2.4	Method of Exercising Limited Rights. One or more Limited Rights may be exercised during the period of exercisability as set forth in Section 2.2 above, only by written
notice delivered to and received by Sunoco. This notice must: 

  

	 	(a)	be signed by the Participant; 

  

	 	(b)	state the Participant’s election to exercise the Limited Rights; 

  

	 	(c)	specify the number of whole shares of Common Stock subject to the Stock Option with respect to which the Limited Rights are being exercised. 

  

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 Within ninety (90) days after the date of exercise, Sunoco will pay to the Participant, for each
Limited Right exercised, the amount of payment as determined pursuant to Section 2.5 below, reduced by an amount equal to the taxes which Sunoco is required by law to withhold by reason of such exercise. 
  

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

  

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

  

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

  

	2.6	Form of Payment. Payment of the amount to which the Participant is entitled upon exercise of Limited Rights, as determined pursuant to Section 2.5 above, shall be made
solely in cash. 

  

	2.7	Cancellation of Limited Rights. 

  

	 	(a)	Expiration of Term. Limited Rights which have not been exercised by the Limited Rights Expiration Date shall be automatically canceled. 

  

	 	(b)	Death or Termination of Participant. Except as provided in Sections 2.7(c) and (d) hereof, or except as otherwise determined by the Committee, all Limited Rights
shall terminate upon: 

  

	 	(1)	the death of the Participant; or 

  

	 	(2)	upon the termination of the Participant’s employment with Sunoco or any of its Affiliates for any reason. 

  

	 	(c)	Retirement or Disability. Upon termination of the Participant’s employment by reason of retirement or permanent disability (as each is determined by the
Committee), the Participant may, within six (6) months from the date of termination, exercise any Limited Right to the extent such Limited Right is exercisable during such six-month period. 

  

	 	(d)	Termination Related to a Change in Control. If the Participant was employed by Sunoco or any of its Affiliates at the time of the Change in Control, and the
Participant’s employment relationship with Sunoco or one of its Affiliates is subsequently terminated as a result of any Qualifying Termination, then: 

  

	 	(1)	the Limited Rights shall not terminate, but shall remain fully exercisable by the Participant during the seven-month period following the Change in Control; and

  

	 	(2)	the requirement that the Participant be terminated by reason of retirement or permanent disability or be employed by Sunoco or one of its Affiliates at the time of exercise, is
waived during the seven-month period following a Change in Control of Sunoco. 

  

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	2.8	Reduction in Number of Limited Rights. Upon the purchase by the Participant of one or more shares of Common Stock pursuant to the exercise of an Stock Option, as provided in
Article I, the number of related Limited Rights awarded under this Agreement shall be reduced on a one-for-one basis. 

  
 ARTICLE III 
 GENERAL PROVISIONS

  

	3.1	Non-Assignability. Unless otherwise determined by the Committee, neither the Stock Option nor the Limited Rights shall be assignable or transferable by the Participant,
except by will or the laws of descent and distribution (and then, only as set forth in Section 1.6(b) hereof). During the life of the Participant, the Stock Option and the Limited Rights shall be exercisable only by the Participant or by the
Participant’s guardian or legal representative, unless the Committee determines otherwise. 

  

	3.2	Heirs and Successors. This Agreement shall be binding upon and inure to the benefit of, Sunoco and its successors and assigns, and upon any person acquiring, whether by
merger, consolidation, purchase of assets or otherwise, all or substantially all of Sunoco’s assets and business. In the event of the Participant’s death prior to exercise of the Stock Option, the Stock Option may be exercised by the
estate of the Participant to the extent such exercise is otherwise permitted by this Agreement. Subject to the terms of the Plan, any benefits distributable to the Participant under this Agreement that are not paid at the time of the
Participant’s death shall be paid at the time and in the form determined in accordance with the provisions of this Agreement and the Plan, to the legal representative or representatives of the estate of the Participant.

  

	3.3	No Right of Continued Employment; Effect of Disaffiliation. The receipt of this Stock Option does not give the Participant, and nothing in the Plan or in this Agreement shall
confer upon the Participant, any right to continue in the employment of Sunoco or any of its Affiliates. Nothing in the Plan or in this Agreement shall affect any right which Sunoco or any of its Affiliates may have to terminate Participant’s
employment. The granting of this Stock Option and the issuance of shares upon the exercise thereof shall not give Sunoco or any of its Affiliates any right to the continued services of the Participant for any period. Upon the sale or other
disposition of an Affiliate of Sunoco with the Participant remaining employed by such former Affiliate, the Participant shall be deemed, for all purposes under the Plan, to have terminated the Participant’s employment relationship with Sunoco
and its remaining Affiliates. 

  

	3.4	Rights as a Shareholder. Neither the Participant nor any other person shall be entitled to the privileges of stock ownership, or otherwise have any rights as a shareholder,
by reason of the Stock Option or the shares issuable upon the exercise of the Stock Option, unless and until such shares have been validly issued to such Participant or such other person as fully paid shares. 

  

	3.5	Registration of Shares. Notwithstanding any other provision of this Agreement, the Stock Option and the Limited Rights shall not be or become exercisable in whole or in part
unless a registration statement with respect to the shares of Common Stock subject thereto has been filed with the Securities and Exchange Commission and has become effective. 

  

	3.6	 Tax Withholding. All distributions under this Agreement are subject to withholding of all applicable taxes. Upon the exercise of the Stock Option, the
Participant shall remit an amount sufficient to satisfy any federal, state and/or local withholding tax requirements 

  

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prior to the delivery of any certificate or certificates for such shares. At the election of the Participant, and subject to such rules as may be established
by the Committee, such withholding obligations may be satisfied through the surrender of shares of Common Stock which the Participant already owns, or to which the Participant is otherwise entitled under the Plan, having a value as of the date of
exercise sufficient to satisfy the applicable tax obligation. 

  

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

  

	3.8	Leaves of Absence. The Committee shall make such rules, regulations and determinations as it deems appropriate under the Plan in respect of any leave of absence taken by the
Participant. Without limiting the generality of the foregoing, the Committee shall be entitled to determine: 

  

	 	(a)	whether or not any such leave of absence shall constitute a termination of such Participant’s employment within the meaning of the Plan; and 

  

	 	(b)	the impact, if any, of any such leave of absence on any prior awards made to the Participant under the Plan. 

  

	3.9	Administration. Pursuant to the Plan, the Committee is vested with conclusive authority to interpret and construe the Plan, to adopt rules and regulations for carrying out
the Plan, and to make determinations with respect to all matters relating to this Agreement, the Plan and awards made pursuant thereto. The authority to manage and control the operation and administration of this Agreement shall be likewise vested
in the Committee, and the Committee shall have all powers with respect to this Agreement as it has with respect to the Plan. Any interpretation of this Agreement by the Committee, and any decision made by the Committee with respect to this
Agreement, shall be final and binding. 

  

	3.10	Effect of Plan; Construction. The entire text of the Plan is expressly incorporated herein by this reference and so forms a part of this Agreement. In the event of any
inconsistency or discrepancy between the provisions of the Stock Option and the terms and conditions of the Plan under which the Stock Option is granted, the provisions in the Plan shall govern and prevail. The Stock Option, the Limited Rights and
this Agreement are each subject in all respects to, and Sunoco and the Participant each hereby agree to be bound by, all of the terms and conditions of the Plan, as the same may have been amended from time to time in accordance with its terms;
provided, however, that no such amendment shall deprive the Participant, without such Participant’s consent, of the Stock Option or any rights hereunder. 

  

	3.11	Amendment. This Agreement shall not be amended or modified except by an instrument in writing executed by both parties to this Agreement. No consent of any other person shall
be required in order to amend or modify this Agreement. 

  

	3.12	Captions. The captions at the beginning of each of the numbered Sections and Articles herein are for reference purposes only and will have no legal force or effect. Such
captions will not be considered a part of this Agreement for purposes of interpreting, construing or applying this Agreement and will not define, limit, extend, explain or describe the scope or extent of this Agreement or any of its terms and
conditions. 

  

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	3.13	Governing Law. THE VALIDITY, CONSTRUCTION, INTERPRETATION AND EFFECT OF THIS INSTRUMENT SHALL BE GOVERNED EXCLUSIVELY BY, AND DETERMINED IN ACCORDANCE WITH THE LAW OF THE
COMMONWEALTH OF PENNSYLVANIA (WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAW PRINCIPLES THEREOF), EXCEPT TO THE EXTENT PRE-EMPTED BY FEDERAL LAW, WHICH SHALL GOVERN. 

  

	3.14	Notices. All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing, by facsimile, by overnight courier or by registered
or certified mail, postage prepaid and return receipt requested. Notices to Sunoco shall be deemed to have been duly given or made upon actual receipt by Sunoco. Such communications shall be addressed and directed to the parties listed below (except
where this Agreement expressly provides that it be directed to another) as follows, or to such other address or recipient for a party as may be hereafter notified by such party hereunder: 

  

			
	 (a) if to the Sunoco:
	 	SUNOCO, INC.,
	 	 	Compensation Committee of the Board of Directors
	 	 	1735 Market Street, Ste. LL
	 	 	Philadelphia, Pennsylvania, 19103-7583
	 	 	Attention: Corporate Secretary
		
	 (b) if to the Participant:
	 	to the address for Participant as it appears on Sunoco’s records.

  

	3.15	Severability. If any provision hereof is found by a court of competent jurisdiction to be prohibited or unenforceable, it shall, as to such jurisdiction, be ineffective only
to the extent of such prohibition or unenforceability, and such prohibition or unenforceability shall not invalidate the balance of such provision to the extent it is not prohibited or unenforceable, nor invalidate the other provisions hereof.

  

	3.16	Entire Agreement. This Agreement constitutes the entire understanding and supersedes any and all other agreements, oral or written, between the parties hereto, in respect of
the subject matter of this Agreement and embodies the entire understanding of the parties with respect to the subject matter hereof. 

  
 IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have executed this Agreement as of the day first above written. 

 

			
	 	 	 SUNOCO, INC.

		
	By:	 	 
	 	 	for the Compensation Committee of the Board of Directors
		
	By:	 	 
	 	 	Participant

  

 9Sunoco, Inc. Directors' Deferred Compenation Plan I

 Exhibit 10.9 

  
 DIRECTORS’ DEFERRED COMPENSATION PLAN I 
  
 Amended and Restated 
 effective 
 January 1, 2005 
  

 ARTICLE I 
  

Definitions 
  
 As used in this Plan, the following terms shall have the meanings herein specified: 
  
 1.1 95% Withdrawal - shall have the meaning provided herein at Section 7.1. 
  
 1.2 Business Combination - shall have the meaning provided herein at
Section 1.4(c). 
  
 1.3 Cash Unit - shall mean the
entry in a Deferred Compensation Account of a credit equal to One Dollar ($1.00). 
  
 1.4 Change in Control - shall mean the occurrence of any of the following events: 
  
 (a) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act of
1934, as amended) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (1) the then-outstanding shares of common stock of the Company (the
“Outstanding Company Common Stock”) or (2) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that, for purposes of this Section (a), the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company, (B) any acquisition by the
Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any company controlled by, controlling or under common control with the Company, or (D) any acquisition by any entity
pursuant to a transaction that complies with Sections (c)(1), (c)(2) and (c)(3) of this definition; 
  
 (b) Individuals who, as of September 6, 2001, constitute the Board of Directors (the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board of Directors; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders,
was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the
Board of Directors; 
  
 (c) Consummation of a
reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Company or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the 

  

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acquisition of assets or stock of another entity by the Company or any of its subsidiaries (each, a “Business Combination”), in each case unless,
following such Business Combination, (1) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 60% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets
either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as
the case may be, (2) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, 20% or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such corporation,
except to the extent that such ownership existed prior to the Business Combination, and (3) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent
Board at the time of the execution of the initial agreement or of the action of the Board of Directors providing for such Business Combination; or 
  
 (d) Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
  
 1.5 Change in Control Election - shall have the meaning provided
herein at Section 7.1 
  
 1.6 Committee - shall mean
the Governance Committee of the Board of Directors of Sunoco, Inc. 
  
 1.7 Company - shall mean Sunoco, Inc., a Pennsylvania corporation. The term “Company” shall include any successor to Sunoco, Inc., any subsidiary or affiliate which has adopted the Plan, or a corporation succeeding to the
business of Sunoco, Inc., or any subsidiary or affiliate by merger, consolidation, liquidation or purchase of assets or stock or similar transaction. 
  
 1.8 Compensation - shall mean those fees and retainers payable by the Company to a Participant in consideration for his or her service as a
Director. 
  

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 1.9 Deferred Compensation Account - shall mean, with respect to any Participant, the total amount
of the Company’s liability for payment of voluntary deferred compensation to the Participant under this Plan, including any accumulated interest and/or Dividend Equivalents. 
  
 1.10 Deferred Payment Election Form - shall mean and refer to the written election by a Participant, in the form
prescribed by the Committee, to voluntarily defer the payment of all or a portion of such Participant’s Compensation under this Plan pursuant to Article II hereof. 
  
 1.11 Director - shall mean a member of the Board of Directors of Sunoco, Inc. 
  
 1.12 Dividend Equivalent - shall mean the entry in a Deferred
Compensation Account or a Restricted Deferred Compensation Account of a dividend credit with respect to a Share Unit, each Dividend Equivalent being equal to the dividend paid from time to time on a Share. 
  
 1.13 Form of Continuing Deferral - shall mean and refer to the written
commitment by a Participant, in the form prescribed by the Committee, to mandatorily defer the payment of all of the Yearly Credit awarded to such Participant under this Plan pursuant to Article IV hereof. 
  
 1.14 Incumbent Board - shall have the meaning provided herein at
Section 1.4(b). 
  
 1.15 Interest Equivalent - shall
mean the entry in a Deferred Compensation Account of an interest credit with respect to a Cash Unit, compounded on the basis of the balance in the Participant’s Deferred Compensation Account, applying the interest factor approved by the
Committee each year for such purpose. 
  
 1.16 Outstanding
Company Common Stock - shall have the meaning provided herein at Section 1.4(a). 
  
 1.17 Outstanding Company Voting Securities - shall have the meaning provided herein at Section 1.4(a). 
  
 1.18 Participant - shall mean a Director who has elected to defer the receipt of compensation or a Director who is required to defer the receipt of
the Restricted Share Units in accordance with the terms of this Plan. 
  
 1.19 Person - shall have the meaning provided herein at Section 1.4(a). 
  
 1.20 Plan - shall mean this Directors’ Deferred Compensation Plan I, as it may be amended from time to time pursuant to Articles XI and XIV, and shall be effective for deferrals of Compensation pursuant to
Article III and crediting of Restricted Share Units pursuant to Article IV, for periods ending prior to January 1, 2005. 
  
 1.21 Restricted Deferred Compensation Account - shall mean, with respect to any Participant, the total amount of the Company’s liability for
payment of Restricted Share Units to the Participant under this Plan. 
  

 3 

 1.22 Restricted Share Unit - shall mean the entry in a Restricted Deferred Compensation Account of
a credit equal to one Share that will be restricted until death, retirement or termination of Board service. 
  
 1.23 Share - shall mean a share of the Company’s authorized voting Common Stock ($1.00 par value per share) and any share or shares of stock
of the Company hereafter issued or issuable in substitution or exchange for each such share. 
  
 1.24 Share Unit - shall mean the entry in a Deferred Compensation Account of a credit equal to one Share. 
  
 ARTICLE II 
  
 Voluntary Deferral of Directors’ Compensation 
  
 2.1 Election to Defer. Prior to the beginning of any calendar quarter, a Participant may elect to defer all or a portion of the Compensation that
would otherwise be paid to the Participant in the next succeeding calendar quarter, by filing a written notice of election with the Committee on the form(s) prescribed by the Committee. Any such deferral election shall apply only to Compensation to
be earned on or after the first day of the calendar quarter following the calendar quarter in which the election is received by the Committee, but in no event will apply to Compensation to be earned in calendar quarters beginning on or after
January 1, 2005. An election to defer, made in accordance with this Article II shall be irrevocable. The deferral election form(s) also will permit the Participant to specify: 
  
 (a) the percentage of Compensation to be deferred; 
  
 (b) the form of deferral, being either Cash Units, Share
Units, or a combination of the two and the percentage allocations of such; 
  
 (c) the selection of a method of payment as set forth in Article III; and 
  
 (d) the designation of a beneficiary as set forth in Article V. 
  
 Without any further action by Participant, the choices specified in the Participant’s Deferred Payment Election Form
regarding the percentage of Compensation deferred, the form of deferral, the designation of a beneficiary, and the method of payment shall each continue and be applied from calendar quarter to calendar quarter to amounts yet to be deferred. Until
further express written notification, on a form prescribed by the Committee, to the contrary, these choices shall continue to be applied to amounts to be credited to such Deferred Compensation Account balance prospectively. 
  

 4 

 2.2 Change in Method of Payment Following Commencement of Distribution or Payment. After payment
or distribution of amounts credited to the Participant’s Deferred Compensation Account has commenced, the Participant may not change the period of time for which such amounts are payable. However, the Participant may convert installment
payments to a lump sum distribution subject to a penalty equal to a five percent (5%) reduction in the balance of the Participant’s Deferred Compensation Account, which shall be forfeited to the Company. 
  
 2.3 Amount of Deferral. The amount of Compensation to be deferred
shall be designated by the Participant as a percentage of the Director’s Compensation in multiples of five percent (5%) but shall not be less than ten percent (10%). 
  
 2.4 Time of Election. Except as otherwise determined by the Committee in its sole discretion, an election to defer
must be filed and received by the Committee by the end of the calendar quarter preceding the calendar quarter in which the Compensation is to be earned. A new Director may also elect to defer Compensation prior to the commencement of his or her term
in office. 
  
 ARTICLE III 
  
 Voluntary Deferred Compensation Accounts 
  
 3.1 Creation of Voluntary Deferred Compensation Accounts. Compensation
deferred hereunder shall be credited to a Deferred Compensation Account established by the Company for each Participant. The Participant must elect to convert the deferred compensation to either Cash Units or Share Units, which shall be credited to
a Participant’s Deferred Compensation Account as set forth in the Plan. 
  
 3.2 Crediting Share Units. Share Units shall be credited to a Participant’s Deferred Compensation Account at the time the Compensation would otherwise have been paid had no election to defer been made. The
number of Share Units to be credited to the Deferred Compensation Account shall be determined by dividing the Compensation by the average closing price for Shares as published in the Wall Street Journal under the caption “New York Stock
Exchange Composite Transactions” for the ten (10) day period prior to the day on which the Compensation would otherwise have been paid. Any fractional Share Units shall also be credited to a Participant’s Deferred Compensation
Account. The number of Share Units in a Deferred Compensation Account shall be appropriately adjusted by the Committee in the event of changes in the Company’s outstanding common stock by reason of a stock dividend or distribution,
recapitalization, merger, consolidation, split-up, combination, exchange of shares or the like, and such adjustments shall be conclusive. Share Units shall not entitle any person to the rights of a stockholder. 
  

 5 

 3.3 Crediting Cash Units. Cash Units shall be credited to a Participant’s Deferred
Compensation Account at the time Compensation would otherwise have been paid had no election to defer been made. 
  
 3.4 Crediting Dividend Equivalents. For Share Units, the Company shall credit the Participant’s Deferred Compensation Account with Dividend
Equivalents being equal to the dividends declared on the Company’s Shares. The crediting shall occur as of the date on which said dividends are paid. The number of Share Units to be credited to the Deferred Compensation Account shall be
calculated by dividing the Dividend Equivalents by the average closing price for Shares as published in the Wall Street Journal (under the caption “New York Stock Exchange Composite Transactions”) or any other publication selected by the
Committee for the period of ten (10) trading days prior to the day on which the dividends are paid on the Company’s Shares. Any fractional Share Units shall also be credited to a Participant’s Deferred Compensation Account.

  
 3.5 Crediting Interest Equivalents. For Cash Units
credited to their Deferred Compensation Accounts, the Company shall credit the Participant’s Deferred Compensation Account on a quarterly basis with an Interest Equivalent. 
  
 3.6 Share Unit Conversion. Immediately upon termination of Board service, and so prior to the commencement of any
payout or distribution of any amounts hereunder, a Participant may make a one-time election to convert to Cash Units all or a portion of the balance of Share Units in such Participant’s Deferred Compensation Account. Any Share Units so
converted to Cash Units as a result of this one-time conversion election shall be valued at the average closing price for Shares as published in the Wall Street Journal (under the caption “New York Stock Exchange Composite Transactions”)
or any other publication selected by the Committee for the ten (10) day period immediately prior to such one-time conversion election. 
  
 3.7 Time of Payment. 
  
 (a) Benefit Commencement Date. All payments of a Participant’s Deferred Compensation Account not in pay status on
January 1, 2005 shall be on the first day of the calendar year following termination of Board service. Upon the death of a Director or former Director, prior to the final payment of all amounts credited to his or her Deferred Compensation
Account, the balance of the Deferred Compensation Account shall be paid in accordance with Article V. Provided, however, in no event shall any payment or distribution be made within six (6) months of the Compensation being earned. 

 

 6 

 3.8 Method of Payment. For all payments not in pay status on January 1, 2005, a Participant
in this part of the Plan shall receive a lump sum payment in cash of all deferred compensation credited to such Participant’s Deferred Compensation Account. Share Units credited to the Participant’s Deferred Compensation Account shall be
valued at the average closing price for Shares as published in the Wall Street Journal (under the caption “New York Stock Exchange Composite Transactions”) or any other publication selected by the Committee for the period of ten
(10) trading days immediately prior to each new calendar year. 
  
 ARTICLE IV 
  
 Restricted Deferred Compensation
Accounts 
  
 4.1 Creation of Restricted Deferred
Compensation Accounts. Compensation deferred under this Article IV shall be credited to a Restricted Deferred Compensation Account established by the Company for each Participant. The Restricted Deferred Compensation Accounts will be initialized
as of February 15, 1996 by transferring to the Plan the present value of the accrued benefits of each Participant in the Non-Employee Directors’ Retirement Plan. The present value of these accrued benefits will then be converted into
Restricted Share Units. The number of Restricted Share Units to be credited to the Restricted Deferred Compensation Account of each Participant will be determined by using the average closing price for Shares as published in the Wall Street Journal
(under the caption “New York Stock Exchange Composite Transactions”) or any other publication selected by the Committee for the ten (10) business days prior to February 15, 1996. Payout of these Restricted Share Units that has
not commenced prior to January 1, 2005 shall commence in accordance with the provisions of Section 4.5(a) of the Plan. 
  
 4.2 Crediting Share Units. If the Committee elects to do so, for each year ending before January 1, 2005, in conjunction with either the
Participant’s election or re-election to the Board, a yearly dollar amount (“Yearly Credit”) will be credited to a Participant’s Restricted Deferred Compensation Account in the form of Restricted Share Units. The number of
Restricted Share Units credited to a Participant’s Restricted Deferred Compensation Account shall be determined by dividing the Yearly Credit by the average closing price for Shares as published in the Wall Street Journal (under the caption
“New York Stock Exchange Composite Transactions”) or any other publication selected by the Committee for the ten (10) day period prior to the Company’s annual meeting. Any fractional Restricted Share Units shall also be credited
to a Participant’s Restricted Deferred Compensation Account. The number of Restricted Share Units in a Restricted Deferred Compensation Account shall be appropriately adjusted by the Committee in the event of changes in the Company’s
outstanding common stock by reason of a stock dividend or distribution, recapitalization, merger, consolidation, split-up, combination, exchange of shares 

  

 7 

 
or the like, and such adjustments shall be conclusive. Restricted Share Units shall not entitle any person to the rights of a stockholder. 
  
 4.3 Crediting Dividend Equivalents. The Company shall credit the
Participant’s Restricted Deferred Compensation Account with Dividend Equivalents being equal to the dividends declared on the Company’s Shares. The crediting shall occur as of the date on which said dividends are paid. The number of
Restricted Share Units to be credited to the Restricted Deferred Compensation Account shall be calculated by dividing the Dividend Equivalents by the average closing price for Shares as published in the Wall Street Journal (under the caption
“New York Stock Exchange Composite Transactions”) or any other publication selected by the Committee for the period of ten (10) trading days prior to the day on which the dividends are paid on the Company’s Shares. Any fractional
Restricted Share Units shall also be credited to a Participant’s Restricted Deferred Compensation Account. 
  
 4.4 Restricted Share Unit Conversion. Immediately upon termination of Board service, and so prior to the commencement of any payout or distribution
of any amounts hereunder, a Participant may make a one-time election to convert to Cash Units all or a portion of the balance of Restricted Share Units in such Participant’s Restricted Deferred Compensation Account. Any Restricted Share Units
so converted to Cash Units as a result of this one-time conversion election shall be valued at the average closing price for Shares as published in the Wall Street Journal (under the caption “New York Stock Exchange Composite
Transactions”) or any other publication selected by the Committee for the period of ten (10) trading days immediately prior to such one-time conversion election. 
  
 4.5 Time of Payment. 
  
 (a) Benefit Commencement Date for Restricted Deferred Compensation Account. All payments of a Participant’s Restricted
Deferred Compensation Account not in pay status on January 1, 2005 shall be made on the first day of the calendar year following termination of Board service. Upon the death of a Director or former Director, prior to the final payment of all
amounts credited to his or her Deferred Compensation Account, the balance of the Restricted Deferred Compensation Account shall be paid in accordance with Article V. Provided, however, in no event shall any payment or distribution be made within six
(6) months of the Compensation being earned. 
  
 (b) Acceleration of Benefit Commencement Date Prior to Payment. At any time prior to the commencement of any payment or distribution of a Participant’s Restricted Deferred Compensation Account, such Participant may request in
writing to accelerate the receipt of all or a specified portion of such Restricted Deferred Compensation Account amounts to the first day 

  

 8 

 
of any calendar quarter; provided, however, that such date is at least six (6) months after the end of the quarter in which the Compensation is
earned. Any such acceleration will be subject to a penalty equal to a five percent (5%) reduction in the balance of the Participant’s Restricted Deferred Compensation Account, which shall be forfeited to the Company. 
  
 4.6 Method of Payment. For all payments not in pay status on
January 1, 2005, a Participant shall receive a lump sum payment in cash of all deferred compensation credited to such Participant’s Restricted Deferred Compensation Account. Share Units credited to the Participant’s Restricted
Deferred Compensation Account shall be valued at the average closing price for Shares as published in the Wall Street Journal (under the caption “New York Stock Exchange Composite Transactions”) or any other publication selected by the
Committee for the period of ten (10) trading days immediately prior to each new calendar year. 
  
 4.7 Change in Method of Payment Following Commencement of Distribution or Payment. After payment or distribution of amounts credited to the
Participant’s Restricted Deferred Compensation Account has commenced, the Participant may not change the period of time for which such amounts are payable. However, the Participant may convert installment payments to a lump sum distribution
subject to a penalty equal to a five percent (5%) reduction in the balance of the Participant’s Restricted Deferred Compensation Account, which shall be forfeited to the Company. 
  
 ARTICLE V 
  
 Designation of Beneficiaries 
  

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

 9 

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

  
 5.3 Survivor Benefits. Upon the Participant’s
death, any balances in the Participant’s Deferred Compensation Account and Restricted Deferred Compensation Account shall be paid in a lump sum on the later of the first day of the calendar year following the Participant’s death or the
date that is thirty (30) days after the Participant’s death. 
  
 ARTICLE VI 
  
 Source of Payments

  
 All payments of deferred compensation shall be paid in
cash from the general funds of the Company and the Company shall be under no obligation to segregate any assets in connection with the maintenance of a Deferred Compensation Account or Restricted Deferred Compensation Account, nor shall anything
contained in this Plan nor any action taken pursuant to the Plan create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and Participant. Title to the beneficial ownership of any assets, whether cash or
investments, which the Company may designate to pay the amount credited to the Deferred Compensation Account or a Restricted Deferred Compensation Account shall at all times remain in the Company and Participant shall not have any property interest
whatsoever in any specific assets of the Company. Participant’s interest in the Deferred Compensation Account or a Restricted Deferred Compensation Account shall be limited to the right to receive payments pursuant to the terms of this Plan and
such rights to receive shall be no greater than the right of any other unsecured general creditor of the Company. 
  
 ARTICLE VII 
  
 Change in Control 
  
 7.1 Effect of Change in
Control on Payment. Anything to the contrary in this Plan notwithstanding, at any time a Participant may make an election (a “Change in Control Election”) to receive, in a single lump sum payment, upon the occurrence of a Change in
Control, the balance of his or her Deferred Compensation Account and Restricted Deferred Compensation Account, as of the valuation date immediately preceding the Change in Control. 

  

 10 

 
Any Change in Control Election or revocation of an existing Change in Control Election shall be null and void if a Change in Control occurs within 12 months
after it is made, and the Participant’s most recent preceding Change in Control Election, if timely made and not revoked at least 12 months before the Change in Control, shall remain in force. Each such election or revocation shall be in
writing and in conformity with such rules as may be prescribed by the Committee. If no Change in Control Election is in force upon the occurrence of a Change in Control, from the date of such Change in Control and for twelve (12) months
thereafter, each Participant, whether or not he or she is still an employee of the Company, shall have the right to withdraw, in a single lump-sum cash payment, an amount equal to ninety-five percent (95%) of the balance of each of his or her
Deferred Compensation Account and Restricted Deferred Compensation Account (a “95% Withdrawal”), as of the valuation date immediately preceding the date of withdrawal; provided, however, that if this option is exercised, such Participant
will forfeit to the Company the remaining five percent (5%) of the balance of each such account (as of the valuation date immediately preceding the date of withdrawal) from which the funds are withdrawn as a penalty. Payments pursuant to a 95%
Withdrawal shall be made as soon as practicable, but no later than thirty (30) days after the Participant notifies the Committee in writing that he/she is exercising his/her right to undertake a 95% Withdrawal. 
  
 7.2 Amendment on or after Change in Control. On or after a Change in
Control, or before, but in connection with, a Change in Control, no action, including by way of example and not of limitation, the amendment, suspension or termination of the Plan, shall be taken which would adversely affect the rights of any
Participant or the operation of this Article VII with respect to the balance in the Participant’s Accounts immediately before such action. 
  
 7.3 Attorney’s Fees. The Company shall pay all legal fees and related expenses incurred by a Participant in seeking to obtain or enforce any
payment, benefit or right such Participant may be entitled to under the plan after a Change in Control. The Participant shall reimburse the Company for such fees and expenses at such time as a court of competent jurisdiction, or another independent
third party having similar authority, determines that the Participant’s claim was frivolously brought without reasonable expectation of success on the merits thereof. 
  
 ARTICLE VIII 
  
 Nonalienation of Benefits 
  
 Participant shall not have the right to sell, assign, transfer or otherwise convey or encumber in whole or in part the right to receive any payment under
this Plan except in accordance with Article V. 
  

 11 

 ARTICLE IX 
  

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

  
 The Plan shall be administered by the Committee which may
make such rules and regulations and establish such procedures for the administration of this Plan as it deems appropriate. In the event of any dispute or disagreements as to the interpretation of this Plan or of any rule, regulation or procedure or
as to any questioned right or obligation arising from or related to this Plan, the decision of the Committee shall be final and binding upon all persons. 
  
 ARTICLE XI 
  
 Termination and Amendment 
  
 The Plan may be terminated at any time by the Board of Directors of Sunoco, Inc. and may be amended at any time by the Committee provided, however, that no such amendment or termination shall adversely affect the
rights of Participants or their beneficiaries with respect to amounts credited to Deferred Compensation Accounts or Restricted Deferred Compensation Accounts prior to such amendment or termination, without the written consent of the Participant.

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

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

 12 

 ARTICLE XIV 
  
 Cessation of Deferrals of Compensation and Crediting of Restricted Share Units under the 
 Plan Effective January 1, 2005 
  
 Notwithstanding any other provision of the Plan, no Director may elect to defer any portion of his or her Compensation payable by the Company to his or
her Deferred Compensation Account after December 31, 2004 pursuant to Article III of the Plan, and no amounts may be credited by the Committee to a Director’s Restricted Deferred Compensation Account under Article IV of the Plan after
December 31, 2004. It is intended that all amounts deferred by or with respect to a Director after December 31, 2004 will be pursuant to the Directors’ Deferred Compensation Plan II. It is further intended that all amounts credited to
Participants’ Deferred Compensation Accounts and Restricted Deferred Compensation Accounts under the Plan made before January 1, 2005 (including Dividend Equivalents and Interest Equivalents credited with respect to such deferrals) not be
subject to IRC Section 409A, and no action shall be taken that would constitute a material modification to a benefit or right under the Plan as existing on October 3, 2004, as set forth under Proposed Regulation 1.409A-6(a)(4), or such
other guidance as may be applicable under IRC Section 409A. 
  

 13

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