Document:

<PAGE>

                                                                    Exhibit 10.4

                          CONTRIBUTION, CONVEYANCE AND
                              ASSUMPTION AGREEMENT

<PAGE>

                                      Index
<TABLE>
<S><C>      <C>                                                                                                    <C>
ARTICLE I Definitions; Schedules; Recordation.......................................................................8
   1.1      Definitions.............................................................................................8
   1.2      Schedules..............................................................................................17
   1.3      Recordation of Evidence of Ownership of Assets.........................................................17
ARTICLE II Concurrent Transactions.................................................................................17
   2.1      Merger of Pipe Line into Sun Texas.....................................................................17
   2.2      Allocation of Assets pursuant to Multiple Survivor Merger of Sun Texas and Sun Pipeline LP.............17
   2.3      Merger of Borger into Services.........................................................................17
   2.4      Contribution of Services Common Stock by Sun Delaware to GP LLC........................................18
   2.5      Conversion of Services to Services LP..................................................................18
   2.6      Contribution and Conveyance by Services LP to Services Out LLC of the Services Out LLC Assets..........18
   2.7      Distribution by Services LP to Sun Delaware of Membership Interest in Services Out LLC.................18
   2.8      Distribution by Services LP to GP LLC of Membership Interest in Services Out LLC.......................18
   2.9      Distribution by GP LLC to Sun Delaware of Membership Interest in Services Out LLC......................19
   2.10     Merger of Michigan into Michigan Texas.................................................................19
   2.11     Allocation of Assets pursuant to Multiple Survivor Merger of Michigan Texas and Michigan In LLC........19
   2.12     Merger of Mid-Con into Mid-Con Texas...................................................................19
   2.13     Allocation of Assets pursuant to Multiple Survivor Merger of Mid-Con Texas and Mid-Con In LLC..........19
   2.14     Merger of Atlantic into Atlantic Out LP................................................................20
   2.15     Allocation of Assets pursuant to Multiple Survivor Merger of Atlantic Out LP and Atlantic In LP........20
   2.16     Contribution and Conveyance by Atlantic Refining to Atlantic R&M In LP of the Atlantic R&M In LP
            Assets and Issuance of Membership Interest in Atlantic In LLC to Atlantic Refining.....................20
   2.17     Contribution and Conveyance by R&M to R&M In LP of the R&M In LP Assets................................20
   2.18     Contribution by Sun Delaware to Sunoco GP of Interests in GP LLC, Services LP, Michigan In LLC,
            Explorer Pipeline Company, and Mid-Con In LLC..........................................................21
   2.19     Contribution by Sun Texas to Sunoco GP of Interests in Pipeline GP LLC and Sun Pipeline LP.............21
   2.20     Contribution by R&M to Sunoco GP of Interests in R&M In LLC and R&M In LP..............................21
   2.21     Contribution by Petroleum to Sunoco GP of Interests in Atlantic In LLC and Atlantic In LP..............22
   2.22     Contribution by Atlantic Refining to Sunoco GP of Interests in Atlantic In LLC and Atlantic R&M In LP..22
   2.23     Contribution by Sunoco GP to the MLP of Limited Liability Company Interests and Limited Partner
            Interests..............................................................................................22
   2.24     Public Cash Contribution...............................................................................23
   2.25     MLP Receipt of Cash Contribution.......................................................................23
</TABLE>

                                        i

<PAGE>

<TABLE>
<S><C>      <C>                                                                                                    <C>
   2.26     Merger of R&M In LLC, Pipe Line GP LLC and Atlantic In LLC into GP LLC.................................23
   2.27     MLP Cash Contribution to R&M In LP and Stock Contribution to Sun Pipeline LP...........................23
   2.28     Contribution of Interests in the Entities by the MLP to the OLP........................................23
   2.29     Contribution of Interests in Certain Entities by GP LLC to OLP GP LLC..................................24
   2.30     Contribution of Interest in OLP GP LLC by GP LLC to the OLP............................................24
   2.31     Distribution of Net Proceeds of Indebtedness from the OLP to the MLP...................................25
   2.32     Distribution of Net Proceeds of Indebtedness from the MLP to Sunoco GP.................................25
   2.33     Loan from Sunoco GP to R&M.............................................................................25
   2.34     Redemption of Sun Delaware's Interest in the MLP by the MLP............................................25
   2.35     (Intentionally Omitted)................................................................................25
   2.36     Contribution of Stock by Sun Delaware to Sun Texas.....................................................25
   2.37     Contribution of Note Receivable by Petroleum to Delaware...............................................25
   2.38     Merger of Services LP, Atlantic In LP, Michigan In LLC, and Mid-Con In LLC into Sun Pipeline LP........26
   2.39     Merger of Atlantic R&M In LP into R&M In LP............................................................26
   2.40     Allocation of Assets pursuant to Multiple Survivor Merger of Sun Pipeline LP and R&M In LP.............26
   2.41     Change of Name of Sun Texas............................................................................26
   2.42     Contribution of Additional Assets......................................................................26
   2.43     Specific Conveyances...................................................................................27
ARTICLE III Assumption of Certain Liabilities......................................................................27
   3.1      Assumption of Sun Pipeline LP Liabilities and Sun Texas Liabilities....................................27
   3.2      Assumption of Services Out LLC Liabilities by Services Out LLC.........................................27
   3.3      Assumption of Services LP/Sun Delaware Interest in Services Out LLC Liabilities by Sun Delaware........28
   3.4      Assumption of Services LP/GP LLC Interest in Services Out LLC Liabilities by GP LLC....................28
   3.5      Assumption of GP LLC Interest in Services Out LLC Liabilities by Sun Delaware..........................28
   3.6      Assumption of Michigan In LLC Liabilities and Michigan Texas Liabilities...............................29
   3.7      Assumption of Mid-Con In Liabilities and Mid-Con Texas Liabilities.....................................29
   3.8      Assumption of Atlantic In LP Liabilities and Atlantic Out LP Liabilities...............................30
   3.9      Assumption of Atlantic R&M In LP Liabilities by Atlantic R&M In LP.....................................30
   3.10     Assumption of R&M In LP Liabilities by R&M In LP.......................................................31
   3.11     Assumption of Sun Delaware Liabilities by Sunoco GP....................................................31
   3.12     Assumption of Sun Texas Aggregate Liabilities by Sunoco GP.............................................31
   3.13     Assumption of R&M Aggregate Interests Liabilities by Sunoco GP.........................................31
   3.14     Assumption of Petroleum Aggregate Interests Liabilities by Sunoco GP...................................32
   3.15     Assumption of Atlantic Refining Aggregate Liabilities by Sunoco GP.....................................32
   3.16     Assumption of Sunoco GP Aggregate Liabilities by the MLP...............................................32
   3.17     Assumption of MLP Interest in Explorer Liabilities by Sun Pipeline LP..................................32
   3.18     Assumption of MLP Aggregate Liabilities by the OLP.....................................................33
   3.19     Assumption of GP LLC Aggregate Liabilities by OLP GP LLC...............................................33
   3.20     Assumption of GP LLC's Interest in OLP GP LLC Liabilities by the OLP...................................33
   3.21     Assumption of Sun Delaware Stock Liabilities by Sun Texas..............................................34
   3.22     Assumption of R&M In LP Additional Liabilities and Sun Pipeline LP Additional Liabilities..............34
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S><C>      <C>                                                                                                    <C>
   3.23     Assumption of R&M In LP Non-Conrail Easement and Non-Intellectual Property Liabilities and Sun
            Pipeline LP Conrail Easement and Intellectual Property Liabilities.....................................34
   3.24     General Provisions Relating to Assumption of Liabilities...............................................35
ARTICLE IV Indemnification.........................................................................................35
   4.1      Indemnification Relating to Excessive Tariff Rate......................................................35
ARTICLE V Title Matters............................................................................................36
   5.1      Encumbrances...........................................................................................36
   5.2      Disclaimer of Warranties; Subrogation; Waiver of Bulk Sales Laws.......................................36
   5.3      Reservation of Right of Use and Access.................................................................38
ARTICLE VI Further Assurances......................................................................................39
   6.1      Further Assurances.....................................................................................39
   6.2      Other Assurances.......................................................................................39
ARTICLE VII Powers of Attorney.....................................................................................40
   7.1      Services LP............................................................................................40
   7.2      R&M....................................................................................................40
   7.3      Atlantic Refining......................................................................................40
   7.4      Contributing Parties...................................................................................41
ARTICLE VIII Miscellaneous.........................................................................................41
   8.1      Order of Completion of Transactions....................................................................41
   8.2      Consents; Restriction on Assignment....................................................................41
   8.3      Costs..................................................................................................42
   8.4      Headings; References; Interpretation...................................................................42
   8.5      Successors and Assigns.................................................................................43
   8.6      No Third Party Rights..................................................................................43
   8.7      Counterparts...........................................................................................43
   8.8      Governing Law..........................................................................................43
   8.9      Severability...........................................................................................43
   8.10     Deed; Bill of Sale; Assignment.........................................................................43
   8.11     Amendment or Modification..............................................................................43
   8.12     Integration............................................................................................43
</TABLE>

                                       iii

<PAGE>

                CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT

     THIS CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT, dated as of
February 8, 2002, is entered into by and among Sunoco, Inc., a Pennsylvania
corporation ("Sunoco"); Sun Pipe Line Company of Delaware, a Delaware
              ------
corporation ("Sun Delaware"); Sunoco, Inc. (R&M), a Pennsylvania corporation ("R
              ------------                                                     -
& M"); Atlantic Petroleum Corporation, a Delaware corporation ("Petroleum");
---                                                             ---------
Sunoco Texas Pipe Line Company, a Texas corporation ("Sun Texas"); Sun Oil Line
                                                      ---------
of Michigan (Out) LLC, a Texas limited liability company ("Michigan Texas");
                                                           --------------
Mid-Continent Pipe Line (Out) LLC, a Texas limited liability company ("Mid-Con
                                                                       -------
Texas"); Sun Pipe Line Services (Out) LLC, a Delaware limited liability company
-----
("Services Out LLC"); Atlantic Petroleum Delaware Corporation, a Delaware
  ----------------
corporation ("Delaware"); Atlantic Pipeline (Out) L.P., a Texas limited
              --------
partnership ("Atlantic Out LP"); Sunoco Partners LLC, a Pennsylvania limited
              ---------------
liability company ("Sunoco GP"); Sunoco Partners Lease Acquisition & Marketing
                    ---------
LLC, a Delaware limited liability company ("LA LLC"); Sunoco Logistics Partners
                                            ------
L.P., a Delaware limited partnership (the "MLP"); Sunoco Logistics Partners GP
                                           ---
LLC, a Delaware limited liability company ("GP LLC"); Sunoco Logistics Partners
                                            ------
Operations L.P., a Delaware limited partnership (the "OLP"); Sunoco Logistics
                                                      ---
Partners Operations GP LLC, a Delaware limited liability company ("OLP GP LLC");
                                                                   ----------
Sunoco Pipeline L.P., a Texas limited partnership ("Sun Pipeline LP"); Sunoco
                                                    ---------------
Partners Marketing & Terminals L.P., a Texas limited partnership ("R&M In LP");
                                                                   ---------
Sunoco Mid-Con (In) LLC, a Texas limited liability company ("Mid-Con In LLC");
                                                             --------------
Atlantic (In) L.P., a Texas limited partnership ("Atlantic In LP"); Atlantic R&M
                                                  --------------
(In) L.P., a Texas limited partnership ("Atlantic R&M In LP"); Sun Pipe Line
                                         ------------------
Services (In) L.P., a Delaware limited partnership ("Services LP"); Sunoco
                                                     -----------
Michigan (In) LLC, a Texas limited liability company ("Michigan In LLC");
                                                       ---------------
Atlantic (In) LLC, a Delaware limited liability company ("Atlantic In LLC"); Sun
                                                          ---------------
Pipe Line GP LLC, a Delaware limited liability company ("Pipe Line GP LLC");
                                                         ----------------
Sunoco R&M (In) LLC, a Delaware limited liability company ("R&M In LLC"); and
                                                            ----------
Atlantic Refining & Marketing Corp., a Delaware corporation ("Atlantic
                                                              --------
Refining").
--------

                                    RECITALS

     WHEREAS, Sunoco GP and Sun Delaware have formed the MLP pursuant to the
Delaware Revised Uniform Limited Partnership Act (the "Delaware Limited
                                                       ----------------
Partnership Act"), for the purpose of acquiring, owning and operating certain
---------------
assets of certain subsidiaries and affiliates of Sunoco used in storage,
transportation and distribution of crude oil and refined petroleum products;

     WHEREAS, in order to accomplish the objectives and purposes in the
preceding recital, the following actions have been taken prior to the date
hereof:

     1.   Sun Delaware formed Sunoco GP under the terms of the Pennsylvania
          Limited Liability Company Act (the "Pennsylvania LLC Act") and
                                              --------------------
          contributed $1,000 in exchange for all of the membership interests in
          Sunoco GP.

     2.   Sunoco GP formed LA LLC and contributed $100 in exchange for all of
          the membership interests in LA LLC.

                                        1

<PAGE>

     3.   Sunoco GP and Sun Delaware formed the MLP to which Sunoco GP
          contributed $20 in exchange for a 2% general partner interest in the
          MLP, and Sun Delaware contributed $980 in exchange for a 98% limited
          partner interest in the MLP.

     4.   Sun Delaware formed GP LLC and contributed $1,000 in exchange for all
          of the membership interests in GP LLC.

     5.   Sun Delaware formed the following Texas limited liability companies:
          (i) Michigan Texas, (ii) Michigan In LLC, (iii) Mid-Con In LLC, and
          (iv) Mid-Con Texas, and contributed $1,000 to each in exchange for all
          of the membership interests in each of such limited liability
          companies.

     6.   The MLP and GP LLC formed the OLP to which the MLP contributed $999.90
          in exchange for a 99.99% limited partner interest in the OLP, and GP
          LLC contributed $.10 in exchange for a .01% general partner interest
          in the OLP.

     7.   GP LLC formed OLP GP LLC and contributed $100 in exchange for all of
          the membership interests in OLP GP LLC.

     8.   Sun Pipe Line Company, a Pennsylvania corporation ("Pipe Line"),
                                                              ---------
          formed Pipe Line GP LLC to which it contributed $1,000 in exchange for
          all of the membership interests in Pipe Line GP LLC.

     9.   Pipe Line and Pipe Line GP LLC formed Sun Pipeline LP to which Pipe
          Line contributed $999.90 in exchange for a 99.99% limited partner
          interest in Sun Pipeline LP, and Pipeline GP LLC contributed $.10 in
          exchange for a .01% general partner interest in Sun Pipeline LP.

     10.  Pipe Line formed Sun Texas pursuant to the Texas Business Corporation
          Act (the "Texas Corporation Act"), and contributed $1,000 in exchange
                    ---------------------
          for all of the capital stock of Sun Texas.

     11.  R&M formed R&M In LLC and contributed $1,000 in exchange for all of
          the membership interests in R&M In LLC.

     12.  R&M and R&M In LLC formed R&M In LP to which R&M contributed $999.90
          in exchange for a 99.99% limited partner interest in R&M In LP, and
          R&M In LLC contributed $.10 in exchange for a .01% general partner
          interest in R&M In LP.

     13.  Petroleum formed the following Delaware limited liability companies:
          Atlantic In LLC and Atlantic Petroleum (Out) LLC ("Atlantic Out LLC"),
                                                             ----------------
          and contributed $2,000 to each in exchange for all of the membership
          interests in each.

     14.  Petroleum and each of Atlantic In LLC and Atlantic Out LLC have formed
          Atlantic In LP and Atlantic Out LP, respectively, to which Petroleum
          contributed $.10 to Atlantic Out LP in exchange for a .01% general
          partner interest in Atlantic Out LP and $999.90 to Atlantic In LP in
          exchange for a 99.99% limited partner

                                        2

<PAGE>

          interest in Atlantic In LP; Atlantic In LLC contributed $.10 to
          Atlantic In LP in exchange for a .01% general partner interest in
          Atlantic In LP; and Atlantic Out LLC contributed $999.90 to Atlantic
          Out LP in exchange for a 99.99% limited partner interest in Atlantic
          Out LP.

     15.  Petroleum and Atlantic In LLC formed Atlantic R&M In LP, to which
          Petroleum contributed $999.90 to Atlantic R&M In LP in exchange for a
          99.99% limited partner interest in Atlantic R&M In LP; and Atlantic In
          LLC contributed $.10 to Atlantic R&M In LP in exchange for a .01%
          general partner interest in Atlantic R&M In LP. Petroleum subsequently
          conveyed all of its limited partner interest in Atlantic R&M In LP to
          Atlantic Refining in consideration of the payment of $999.90 to
          Petroleum.

     16.  Sun Pipe Line Services Co., a Delaware corporation ("Services"),
                                                               --------
          formed Services Out LLC, and contributed $1,000 in exchange for all of
          the membership interests in Services Out LLC.

     17.  R&M conveyed certain trucks and related licenses to R&M In LP, 99.99%
          on its own behalf and .01% on behalf of R&M In LLC.

     18.  Petroleum formed Delaware and contributed $100 and its $250 million
          note receivable in exchange for all of the outstanding common stock of
          Delaware.

     WHEREAS, concurrently with the consummation of the transactions
contemplated hereby, each of the following shall occur:

     19.  Pipe Line will merge into Sun Texas under Section 1921 of the
          Pennsylvania Business Corporation Law (the "Pennsylvania Corporation
                                                      ------------------------
          Law") and Article 5.16 of the Texas Corporation Act, with Sun Texas
          ---
          being the survivor.

     20.  Sun Texas will effect a multiple survivor merger with Sun Pipeline LP
          under Article 5.01 of the Texas Corporation Act and Article 6132a,
          Section 2.11 of the Texas Revised Limited Partnership Act (the "Texas
                                                                          -----
          Limited Partnership Act"), and the assets and liabilities of Sun Texas
          -----------------------
          owned before such merger will be allocated in accordance with the
          Texas Corporation Act and the Texas Limited Partnership Act, with the
          effect that (i) all assets and liabilities of Sun Texas not going to
          the MLP or its subsidiaries shall continue to be owned by Sun Texas
          and (ii) all assets and liabilities going into the MLP or its
          subsidiaries shall be owned by Sun Pipeline LP.

     21.  Sun Borger Pipe Line Company, a Delaware corporation ("Borger"), will
                                                                 ------
          merge into Services under Section 253 of the Delaware General
          Corporation Law (the "Delaware Corporation Act"), with Services being
                                ------------------------
          the survivor.

     22.  Sun Delaware will contribute .01% of the stock of Services to GP LLC
          as a capital contribution.

                                        3

<PAGE>

     23.  Services will file a certificate of conversion under Section 266 of
          the Delaware Corporation Act and Section 17-217 of the Delaware
          Limited Partnership Act to convert itself to Services LP, designating
          GP LLC as its general partner and Sun Delaware as its limited partner.

     24.  Services LP will (i) convey the assets of Services LP not going into
          the MLP or its subsidiaries to Services Out LLC as a capital
          contribution and (ii) distribute all of the membership interests in
          Services Out LLC to Sun Delaware, allocating 99.99% to Sun Delaware
          and .01% to GP LLC. GP LLC, in turn, will distribute its .01%
          membership interest in Services Out LLC to Sun Delaware.

     25.  Sun Oil Line Company of Michigan, a Michigan corporation ("Michigan");
                                                                     --------
          will merge into Michigan Texas under Section 736 of the Michigan
          Business Corporation Act (the "Michigan Corporation Act") and Article
                                         ------------------------
          10.02 of the Texas Limited Liability Company Act (the "Texas LLC
                                                                 ---------
          Act"), with Michigan Texas being the survivor.
          ---

     26.  Michigan Texas will effect a multiple survivor merger with Michigan In
          LLC under Article 10.01 of the Texas LLC Act, and the assets and
          liabilities of Michigan Texas owned before such merger will be
          allocated in accordance with the Texas LLC Act, with the effect that
          (i) all assets and liabilities of Michigan Texas going into the MLP or
          its subsidiaries shall be owned by Michigan In LLC and (ii) all other
          assets and liabilities of Michigan Texas shall continue to be owned by
          Michigan Texas.

     27.  Mid-Continent Pipe Line Company, an Oklahoma corporation ("Mid-Con"),
                                                                     -------
          will merge into Mid-Con Texas under Section 1090.2 of the Oklahoma
          General Corporation Act (the "Oklahoma Corporation Act") and Article
                                        ------------------------
          10.01 of the Texas LLC Act, with Mid-Con Texas being the survivor.

     28.  Mid-Con Texas will effect a multiple survivor merger with Mid-Con In
          LLC under Article 10.01 of the Texas LLC Act, and the assets and
          liabilities of Mid-Con Texas owned before such merger will be
          allocated in accordance with the Texas LLC Act, with the effect that
          (i) all assets and liabilities of Mid-Con Texas going into the MLP or
          its subsidiaries will be owned by Mid-Con In LLC, and (ii) all other
          assets and liabilities of Mid-Con Texas will continue to be owned by
          Mid-Con Texas.

     29.  Atlantic Pipeline Corp., a Delaware corporation ("Atlantic"), will
                                                            --------
          merge into Atlantic Out LP under Section 263 of the Delaware
          Corporation Act and Article 6132a, Section 2.11 of the Texas Limited
          Partnership Act, with Atlantic Out LP being the survivor.

     30.  Atlantic Out LP will effect a multiple survivor merger with Atlantic
          In LP under Article 6132a, Section 2.11 of the Texas Limited
          Partnership Act, and the assets and liabilities of Atlantic Out LP
          owned before such merger will be allocated in accordance with the
          Texas Limited Partnership Act, with the effect that (i) all

                                        4

<PAGE>

          assets and liabilities of Atlantic Out LP going into the MLP or its
          subsidiaries will be owned by Atlantic In LP, and (ii) all other
          assets and liabilities of Atlantic Out LP will continue to be owned by
          Atlantic Out LP.

     31.  Atlantic Refining will convey all of its assets going into the MLP and
          its subsidiaries to Atlantic R&M In LP as a capital contribution in
          exchange for a limited partner interest in Atlantic R&M In LP and the
          assumption by Atlantic R&M In LP of the related liabilities (99.99% on
          its behalf and .01% on behalf of Atlantic In LLC, for which Atlantic
          Refining will receive an interest in Atlantic In LLC). The percentage
          ownership interests with respect to Atlantic In LLC shall be adjusted
          after the Effective Date by the members of Atlantic In LLC in
          accordance with the terms of the limited liability company agreement
          of Atlantic In LLC.

     32.  R&M will convey its assets going into the MLP and its subsidiaries to
          R&M In LP as a capital contribution, with R&M In LP assuming the
          related liabilities (99.99% for itself and .01% on behalf of R&M In
          LLC).

     33.  The following contributions will be made to Sunoco GP: (a) Sun
          Delaware will contribute all of its interest in GP LLC, Services LP,
          Michigan In LLC, Explorer Pipeline Company, a Delaware corporation,
          and Mid-Con In LLC and will continue its 13% membership interest in
          Sunoco GP; (b) Sun Texas will contribute all of its interest in Pipe
          Line GP LLC and Sun Pipeline LP in exchange for a 45% membership
          interest in Sunoco GP; (c) R&M will contribute all of its interest in
          R&M In LLC and R&M In LP in exchange for a 25% membership interest in
          Sunoco GP; (d) Petroleum will contribute all of its interest in
          Atlantic In LLC and Atlantic In LP in exchange for a 10% membership
          interest in Sunoco GP; and (e) Atlantic Refining will contribute its
          interest in Atlantic In LLC and Atlantic R&M In LP to Sunoco GP in
          exchange for a 7% membership interest in Sunoco GP. The percentage
          ownership interests set forth in clauses (a) through (e) shall be
          adjusted after the Effective Date by the members of Sunoco GP in
          accordance with the terms of the limited liability company agreement
          of Sunoco GP.

     34.  Sunoco GP will contribute all of the membership interests and
          partnership interests and its interest in Explorer Pipeline Company
          conveyed to it as provided in the immediately preceding paragraph 33
          to the MLP in exchange for (a) a continuation of its 2% general
          partner interest in the MLP (and its Incentive Distribution Rights),
          (b) 5,633,639 Common Units (as defined below) in the MLP, (c)
          11,383,639 Subordinated Units (as defined below) in the MLP and (d) a
          special limited partnership interest in the MLP (the "Sunoco GP
                                                                ---------
          Special LP Interest") giving Sunoco GP only the right to receive the
          -------------------
          Net Debt Proceeds (as defined herein) in cash from the MLP upon
          redemption of the Sunoco GP Special LP Interest. The public, through
          the Underwriters, will contribute $116,437,500 to the MLP in exchange
          for 5,750,000 Common Units in the MLP.

                                        5

<PAGE>

     35.  The MLP will pay or cause to be paid the underwriting discounts and
          offering expenses incurred by the MLP in connection with the initial
          public offering (the "Offering") of the Common Units (collectively,
                                --------
          the "Offering Costs").
               --------------

     36.  R&M In LLC, Pipe Line GP LLC and Atlantic In LLC will merge into GP
          LLC under Section 18-209 of the Delaware Limited Liability Company Act
          (the "Delaware LLC Act"), with GP LLC being the survivor.
                ----------------

     37.  The MLP will contribute to (i) R&M In LP the cash remaining (after the
          payment of the Offering Costs that are due and payable or that have
          been previously paid) from the sale of the Common Units to the public
          (the "Net Equity Proceeds"), to be used by R&M In LP to pay any unpaid
                -------------------
          Offering Costs and the remainder to be used by R&M In LP as working
          capital and (ii) Sun Pipeline LP its interest in Explorer Pipeline
          Company, .01% on behalf of GP LLC and 99.99% on behalf of the MLP.

     38.  The MLP will contribute its direct ownership interests in Sun Pipeline
          LP, Services LP, Michigan In LLC, Mid-Con In LLC, Atlantic In LP,
          Atlantic R&M In LP and R&M In LP (collectively, the "Entities") to the
                                                               --------
          OLP (i) in exchange for a special limited partnership interest in the
          OLP (the "MLP Special LP Interest") giving the MLP only the right to
                    -----------------------
          receive the Net Debt Proceeds from the OLP upon redemption of the MLP
          Special LP Interest, and (ii) as a capital contribution on its behalf
          (99.99%) and on behalf of GP LLC (.01%) with respect to the membership
          interests in Michigan In LLC and Mid-Con In LLC.

     39.  GP LLC will contribute to OLP GP LLC its .01% general partner interest
          in each of (a) R&M In LP, (b) Sun Pipeline LP, (c) Atlantic In LP, (d)
          Atlantic R&M In LP and (e) Services LP as a capital contribution and,
          in turn, GP LLC will contribute its interest in OLP GP LLC to the OLP
          as a capital contribution.

     40.  The OLP will issue $250 million in aggregate principal amount of its
          7.25% Senior Notes, due February 15, 2012 (the "Senior Notes"), and
                                                          ------------
          the following shall occur: (a) the OLP will pay the discounts and
          commissions and offering expenses incurred by the OLP in connection
          with the offer and sale of the Senior Notes (the "Debt Offering
                                                            -------------
          Costs") and will distribute the cash remaining (after the payment of
          -----
          the Debt Offering Costs) from the sale of the Senior Notes (the "Net
                                                                           ---
          Debt Proceeds") to the MLP in redemption of the MLP Special LP
          ----
          Interest, and (b) the MLP will distribute the Net Debt Proceeds to
          Sunoco GP in redemption of the Sunoco GP Special LP Interest.

     41.  Sunoco GP will lend the Net Debt Proceeds to R&M. The MLP will redeem
          the limited partner interest in the MLP owned by Sun Delaware for
          $980.

     WHEREAS, following the foregoing matters, each of the following shall
occur:

     42.  Sun Delaware will contribute to Sun Texas all of the outstanding
          common stock it owns of West Texas Gulf Pipe Line Company, a Delaware
          corporation, and Inland Corporation, a Delaware corporation, as a
          capital contribution.

                                        6

<PAGE>

     43.  Services LP, Atlantic In LP, Michigan In LLC and Mid-Con In LLC will
          merge into Sun Pipeline LP under Section 17-211 of the Delaware
          Limited Partnership Act, Article 10.01 of the Texas LLC Act and
          Article 6132a, Section 2.11 of the Texas Limited Partnership Act, with
          Sun Pipeline LP being the survivor.

     44.  Atlantic R&M In LP will merge into R&M In LP under Article 6132a,
          Section 2.11 of the Texas Limited Partnership Act.

     45.  Sun Pipeline LP will effect a multiple survivor merger with R&M In LP
          under Article 6132a, Section 2.11 of the Texas Limited Partnership Act
          and (i) certain terminal assets and related liabilities located in
          Inkster, Michigan; Nederland, Texas; and Fort Mifflin, Pennsylvania;
          owned by Sun Pipeline LP before such merger will be allocated to R&M
          In LP in accordance with the Texas Limited Partnership Act and all
          other assets and liabilities owned by Sun Pipeline LP before such
          merger will continue to be owned by Sun Pipeline LP and (ii) certain
          easement assets owned by R&M In LP before such merger will be
          allocated to Sun Pipeline LP in accordance with the Texas Limited
          Partnership Act and all other assets owned by R&M In LP before such
          merger will continue to be owned by R&M In LP.

     46.  Sun Texas will change its name to Sun Pipe Line Company.

     47.  The agreements of limited partnership of each of the following will be
          amended and restated to the extent necessary to reflect the applicable
          matters set forth above and in Articles II and III in this Agreement
          (as defined below):

               (a)  the MLP;

               (b)  the OLP;

               (c)  Sun Pipeline LP;

               (d)  Atlantic In LP;

               (e)  Atlantic R&M In LP;

               (f)  Services LP;

               (g)  R&M In LP; and

               (h)  Atlantic Out LP.

     48.  The limited liability company agreements of each of the following will
          be amended to the extent necessary to reflect the applicable matters
          set forth above and in Articles II and III in this Agreement:

               (a)  GP LLC;

                                        7

<PAGE>

               (b)  OLP GP LLC;

               (c)  Services Out LLC;

               (d)  Atlantic In LLC;

               (e)  Pipe Line GP LLC;

               (f)  R&M In LLC;

               (g)  Sunoco GP; and

               (k)  Atlantic (Out) LLC.

     49.  The regulations of each of the following limited liability companies
          will be amended to the extent necessary to reflect the applicable
          matters set forth above and in Articles II and III in this Agreement:

               (a)  Mid-Con In LLC; and

               (b)  Michigan In LLC.

     NOW, THEREFORE, in consideration of their mutual undertakings and
agreements hereunder, the parties to this Agreement undertake and agree as
follows:

                                   ARTICLE I
                       Definitions; Schedules; Recordation

     1.1  Definitions. The following capitalized terms have the meanings given
          -----------
          below.

          "Acts" shall mean collectively the Delaware Limited Partnership Act,
           ----
the Delaware LLC Act, the Delaware Corporation Act, the Michigan Corporation
Act, the Oklahoma Corporation Act, the Pennsylvania LLC Act, the Pennsylvania
Corporation Law, the Texas Limited Partnership Act, the Texas LLC Act and the
Texas Corporation Act.

          "Affiliate" has the meaning assigned to such term in the Partnership
Agreement.

          "Agreement" means this Contribution, Conveyance and Assumption
Agreement. ---------

          "Assets" has the meaning assigned to such term in Section 5.1.
           ------

          "Atlantic" has the meaning assigned to such term in Item 29 of the
           --------
Recitals of this Agreement.

          "Atlantic In LLC" has the meaning assigned to such term in the first
           ---------------
paragraph of this Agreement.

          "Atlantic In LP" has the meaning assigned to such term in the first
           --------------
paragraph of this Agreement.

                                        8

<PAGE>

          "Atlantic In LP Assets" has the meaning assigned to such term in
           ---------------------
Section 2.15.

          "Atlantic In LP Liabilities" means all obligations and liabilities
           --------------------------
associated with the Atlantic In LP Assets.

          "Atlantic Out LLC" has the meaning assigned to such term in Item 13 of
           ----------------
the Recitals of this Agreement.

          "Atlantic Out LP" has the meaning assigned to such term in the first
           ---------------
paragraph of this Agreement.

          "Atlantic Out LP Assets" has the meaning assigned to such term in
           ----------------------
Section 2.15.

          "Atlantic Out LP Liabilities" means all obligations and liabilities
           ---------------------------
associated with the Atlantic Out LP Assets.

          "Atlantic R&M In LP" has the meaning assigned to such term in the
           ------------------
first paragraph of this Agreement.

          "Atlantic R&M In LP Assets" has the meaning assigned to such term in
           -------------------------
Section 2.16.

          "Atlantic R&M In LP Liabilities" means all obligations and liabilities
           ------------------------------
associated with the Atlantic R&M In LP Assets.

          "Atlantic Refining" has the meaning assigned to such term in the first
           -----------------
paragraph of this Agreement.

          "Atlantic Refining Aggregate Interests" has the meaning assigned to
           -------------------------------------
such term in Section 2.22.

          "Atlantic Refining Aggregate Liabilities" means all obligations and
           ---------------------------------------
liabilities associated with the Atlantic Refining Aggregate Interests.

          "Beneficial Owner" has the meaning assigned to such term in Section
           ----------------
8.2.

          "Borger" has the meaning assigned to such term in Item 21 of the
           ------
Recitals of this Agreement.

          "Common Units" has the meaning assigned to such term in the
           ------------
Partnership Agreement.

          "Contributing Parties" has the meaning assigned to such term in
           --------------------
Section 2.42.

          "Conveyed Assets" has the meaning assigned to such term in Section
           ---------------
5.3.

          "Debt Offering Costs" has the meaning assigned to such term in Item 40
           -------------------
of the Recitals of this Agreement.

                                        9

<PAGE>

          "Delaware" has the meaning assigned to such term in the first
           --------
paragraph of this Agreement.

          "Delaware Corporation Act" has the meaning assigned to such term in
           ------------------------
Item 21 of the Recitals of this Agreement.

          "Delaware LLC Act" has the meaning assigned to such term in Item 36 of
           ----------------
the Recitals of this Agreement.

          "Delaware Limited Partnership Act" has the meaning assigned to such
           -------------------------------
term in the initial Recital to this Agreement.

          "Effective Date" means February 8, 2002.
           --------------
          "Effective Time" means 12:01 a.m. Eastern Standard Time on the
           --------------
Effective Date.

          "Entities" has the meaning assigned to such term in Item 38 of the
           --------
Recitals to this Agreement.

          "FERC" means the Federal Energy Regulatory Commission.
           ----

          "GP LLC" has the meaning assigned to such term in the first paragraph
           ------
of this Agreement.

          "GP LLC Aggregate Interests" has the meaning assigned to such term in
           --------------------------
Section 2.29.

          "GP LLC Aggregate Liabilities" means all of the obligations under the
           ----------------------------
applicable limited partnership agreements relating to the GP LLC Aggregate
Interests.

          "GP LLC's Interest in OLP GP LLC" has the meaning assigned to such
           -------------------------------
term in Section 2.30.

          "GP LLC's Interest in OLP GP LLC Liabilities" means all of the
           -------------------------------------------
obligations under the applicable limited liability company agreement relating to
GP LLC's Interest in OLP GP LLC.

          "GP LLC Interest in Services Out LLC" has the meaning assigned to such
           -----------------------------------
term in Section 2.9.

          "GP LLC Interest in Services Out LLC Liabilities" means all of the
           -----------------------------------------------
obligations under the limited liability company agreement of Services Out LLC
that relate to the GP LLC Interest in Services Out LLC.

          "Incentive Distribution Rights" has the meaning assigned to such term
           -----------------------------
in the Partnership Agreement.

          "LA LLC" has the meaning assigned to such term in the first paragraph
           ------
of this Agreement.

                                       10

<PAGE>

          "Laws" means any and all laws, statutes, ordinances, rules or
           ----
regulations promulgated by a governmental authority, orders of a governmental
authority, judicial decisions, decisions of arbitrators or determinations of any
governmental authority or court.

          "Michigan" has the meaning assigned to such term in Item 25 in the
           --------
Recitals of this Agreement.

          "Michigan Corporation Act" has the meaning assigned to such term in
           ------------------------
Item 25 of the Recitals of this Agreement.

          "Michigan In LLC" has the meaning assigned to such term in the first
           ---------------
paragraph of this Agreement.

          "Michigan In LLC Assets" has the meaning assigned to such term in
           ----------------------
Section 2.11.

          "Michigan In LLC Liabilities" means all of the obligations and
           ---------------------------
liabilities associated with the Michigan In LLC Assets.

          "Michigan Texas" has the meaning assigned to such term in the first
           --------------
paragraph of this Agreement.

          "Michigan Texas Assets" has the meaning assigned to such term in
           ---------------------
Section 2.11.

          "Michigan Texas Liabilities" means all of the obligations and
           --------------------------
liabilities associated with the Michigan Texas Assets.

          "Mid-Con" has the meaning assigned to such term in Item 27 of the
           -------
Recitals of this Agreement.

          "Mid-Con Texas" has the meaning assigned to such term in the first
           -------------
paragraph of this Agreement.

          "Mid-Con Texas Assets" has the meaning assigned to such term in
           --------------------
Section 2.13.

          "Mid-Con Texas Liabilities" means all of the obligations and
           -------------------------
liabilities associated with the Mid-Con Texas Assets.

          "Mid-Con In LLC" has the meaning assigned to such term in the first
           --------------
paragraph of this Agreement.

          "Mid-Con In LLC Assets" has the meaning assigned to such term in
           ---------------------
Section 2.13.

          "Mid-Con In LLC Liabilities" means all of the obligations and
           --------------------------
liabilities associated with the Mid-Con In LLC Assets.

          "MLP" has the meaning assigned to such term in the first paragraph of
           ---
this Agreement.

                                       11

<PAGE>

          "MLP Aggregate Interests" has the meaning assigned to such term in
           -----------------------
Section 2.28.

          "MLP Aggregate Liabilities" shall mean all of the obligations under
           -------------------------
the applicable regulations and the limited partnership agreement relating to the
MLP Aggregate Interests.

          "MLP Interest in Explorer" has the meaning assigned to such term in
           ------------------------
Section 2.27.

          "MLP Interest in Explorer Liabilities" means all of the obligations
           ------------------------------------
under the shareholders agreement relating to the MLP Interest in Explorer.

          "MLP Special LP Interest" has the meaning assigned to such term in
           -----------------------
Item 38 of the Recitals to this Agreement.

          "Net Debt Proceeds" has the meaning assigned to such term in Item 40
           -----------------
of the Recitals to this Agreement.

          "Net Equity Proceeds" has the meaning assigned to such term in Item 37
           -------------------
of the Recitals to this Agreement.

          "Offering" has the meaning assigned to such term in Item 35 of the
           --------
Recitals of this Agreement.

          "Offering Costs" has the meaning assigned to such term in Item 35 of
           --------------
the Recitals to this Agreement.

          "Oklahoma Corporation Act" has the meaning assigned to such term in
           ------------------------
Item 27 of the Recitals to this Agreement.

          "OLP" has the meaning assigned to such term in the first paragraph of
           ---
this Agreement.

          "OLP GP LLC" has the meaning assigned to such term in the first
           ----------
paragraph of this Agreement.

          "Omnibus Agreement" means the Omnibus Agreement dated of even date
           -----------------
herewith, by and among Sunoco, R&M, Sun Delaware, Petroleum, Sun Texas, Services
Out LCC, the MLP, the OLP and Sunoco GP.

          "Partnership Agreement" means the First Amended and Restated Agreement
           ---------------------
of Limited Partnership of the MLP, as it may be amended and restated from time
to time.

          "Pennsylvania Corporation Law" has the meaning assigned to such term
           ----------------------------
in Item 19 of the Recitals of this Agreement.

                                       12

<PAGE>

          "Partnership Group" has the meaning assigned to such term in the
           -----------------
Omnibus Agreement.

          "Pennsylvania LLC Act" has the meaning assigned to such term in Item 1
           --------------------
of the Recitals of this Agreement.

          "Petroleum" has the meaning assigned to such term in the first
           ---------
paragraph of this Agreement.

          "Petroleum Aggregate Interests" has the meaning assigned to such term
           -----------------------------
in Section 2.21.

          "Petroleum Aggregate Interests Liabilities" means all of the
           -----------------------------------------
obligations under the applicable limited liability company agreement and the
limited partnership agreement relating to the Petroleum Aggregate Interests.

          "Pipe Line" has the meaning assigned to such term in Item 8 of the
           ---------
Recitals of this Agreement.

          "Pipe Line GP LLC" has the meaning assigned to such term in the first
           ----------------
paragraph of this Agreement.

          "Pro Forma Balance Sheet" has the meaning assigned to such term in
           -----------------------
Section 2.42.

          "Real Property" has the meaning assigned to such term in Section 5.3.
           -------------

          "Receiving Party" has the meaning assigned to such term in Section
           ---------------
7.4.

          "Reserved Assets" has the meaning assigned to such term in Section
           ---------------
5.3.

          "Restriction" has the meaning assigned to such term in Section 8.2.
           -----------

          "Restriction Asset" has the meaning assigned to such term in Section
           -----------------
8.2.

          "R&M" has the meaning assigned to such term in the first paragraph of
           ---
this Agreement.

          "R&M Aggregate Interests" has the meaning assigned to such term in
           -----------------------
Section 2.20.

          "R&M Aggregate Interests Liabilities" means all of the obligations
           -----------------------------------
under the applicable limited liability company agreement and the limited
partnership agreement that relate to the R&M Aggregate Interests.

          "R&M In LLC" has the meaning assigned to such term in the first
           ----------
paragraph of this Agreement.

                                       13

<PAGE>

          "R&M In LP" has the meaning assigned to such term in the first
           ---------
paragraph of this Agreement.

          "R&M In LP Assets" has the meaning assigned to such term in Section
           ----------------
2.17.

          "R&M In LP Additional Assets" has the meaning assigned to such term in
           ---------------------------
Section 2.40.

          "R&M In LP Additional Liabilities" means all of the obligations and
           --------------------------------
liabilities associated with the R&M In LP Additional Assets.

          "R&M In LP Liabilities" means all of the obligations and liabilities
           ---------------------
associated with the R&M In LP Assets.

          "R&M In LP Non-Conrail Easement and Non-Intellectual Property Assets"
           -------------------------------------------------------------------
has the meaning assigned to such term in Section 2.40.

          "R&M In LP Non-Conrail Easement and Non-Intellectual Property
           ------------------------------------------------------------
Liabilities" means all of the obligations and liabilities associated with the
-----------
R&M In LP Non-Conrail Easement and Non-Intellectual Property Assets.

          "Registration Statement" means the registration statement on Form S-1
           ----------------------
filed by the MLP relating to the Offering.

          "Senior Notes" has the meaning assigned to such term in Item 40 in the
           ------------
Recitals of this Agreement.

          "Services" has the meaning assigned to such term in Item 16 in the
           --------
Recitals of this Agreement.

          "Services LP" has the meaning assigned to such term in the first
           -----------
paragraph of this Agreement.

          "Services LP/GP LLC Interest in Services Out LLC" has the meaning
           -----------------------------------------------
assigned to such term in Section 2.8.

          "Services LP/GP LLC Interest in Services Out LLC Liabilities" means
           -----------------------------------------------------------
all of the obligations under the limited liability company agreement of Services
Out LLC that relate to the Services LP/GP LLC Interest in Services Out LLC.

          "Services LP/Sun Delaware Interest in Services Out LLC" has the
           -----------------------------------------------------
meaning assigned to such term in Section 2.7.

          "Services LP/Sun Delaware Interest in Services Out LLC Liabilities"
           -----------------------------------------------------------------
means all of the obligations under the limited liability company agreement of
Services Out LLC that relate to the Services LP/Sun Delaware Interest in
Services Out LLC.

                                       14

<PAGE>

          "Services Out LLC" has the meaning assigned to such term in the first
           ----------------
paragraph of this Agreement.

          "Services Out LLC Assets" has the meaning assigned to such term in
           -----------------------
Section 2.6.

          "Services Out LLC Liabilities" means all of the obligations and
           ----------------------------
liabilities associated with the Services Out LLC Assets.

          "Services Stock" has the meaning assigned to such term in Section 2.4.
           --------------

          "Specific Conveyances" has the meaning assigned to such term in
           --------------------
Section 2.43.

          "Subordinated Units" has the meaning assigned to such term in the
           ------------------
Partnership Agreement.

          "Sun Delaware" has the meaning assigned to such term in the first
           ------------
paragraph of this Agreement.

          "Sun Delaware Aggregate Interests" has the meaning assigned to such
           --------------------------------
term in Section 2.18.

          "Sun Delaware Liabilities" means all of the obligations under the
           ------------------------
applicable limited liability company agreement, the limited partnership
agreement, the regulations and the shareholders agreement that relate to the Sun
Delaware Aggregate Interests.

          "Sun Delaware Stock" has the meaning assigned to such term in Section
           ------------------
2.36.

          "Sun Delaware Stock Liabilities" shall mean all of the obligations
           ------------------------------
under the shareholder's agreement relating to the applicable Sun Delaware Stock.

          "Sunoco" has the meaning assigned to such term in the first paragraph
           ------
to this Agreement.

          "Sunoco Related Party" has the meaning assigned to such term in the
           --------------------
Underwriting Agreement.

          "Sunoco GP" has the meaning assigned to such term in the first
           ---------
paragraph of this Agreement.

          "Sunoco GP Aggregate Interests" has the meaning assigned to such term
           -----------------------------
in Section 2.23.

          "Sunoco GP Aggregate Liabilities" shall mean all of the obligations
           -------------------------------
associated with the Sunoco GP Aggregate Interests.

          "Sunoco GP Special LP Interest" has the meaning assigned to such term
           -----------------------------
in Item 34 of the Recitals to this Agreement.

                                       15

<PAGE>

          "Sun Pipeline LP" has the meaning assigned to such term in the first
           ---------------
paragraph of this Agreement.

          "Sun Pipeline LP Additional Assets" has the meaning assigned to such
           ---------------------------------
term in Section 2.40.

          "Sun Pipeline LP Additional Liabilities" means all of the obligations
           --------------------------------------
and liabilities associated with the Sun Pipeline LP Additional Assets.

          "Sun Pipeline LP Assets" has the meaning assigned to such term in
           ----------------------
Section 2.2.

          "Sun Pipeline LP Liabilities" means all of the obligations and
           ---------------------------
liabilities associated with the Sun Pipeline LP Assets.

          "Sun Pipeline LP Conrail Easement and Intellectual Property Assets"
           -----------------------------------------------------------------
has the meaning assigned to such term in Section 2.40.

          "Sun Pipeline LP Conrail Easement and Intellectual Property
           ----------------------------------------------------------
Liabilities" means all of the obligations and liabilities associated with the
-----------
Sun Pipeline LP Conrail Easement and Intellectual Property Assets.

          "Sun Texas" has the meaning assigned to such term in the first
           ---------
paragraph of this Agreement.

          "Sun Texas Assets" has the meaning assigned to such term in Section
           ----------------
2.2.

          "Sun Texas Liabilities" means all of the obligations and liabilities
           ---------------------
associated with the Sun Texas Assets.

          "Sun Texas Aggregate Interests" has the meaning assigned to such term
           -----------------------------
in Section 2.19.

          "Sun Texas Aggregate Liabilities" shall mean all of the obligations
           -------------------------------
and liabilities of Sun Texas associated with the Sun Texas Aggregate Interests.

          "Texas Corporation Act" has the meaning assigned to such term in Item
           ---------------------
10 of the Recitals to this Agreement.

          "Texas LLC Act" has the meaning assigned to such term in Item 25 of
           -------------
the Recitals to this Agreement.

          "Texas Limited Partnership Act" has the meaning assigned to such term
           -----------------------------
in Item 20 of the Recitals to this Agreement.

          "Underwriters" has the meaning assigned to such term in Item 42 of the
           ------------
Recitals to this Agreement.

                                       16

<PAGE>

          "Underwriting Agreement" means the Underwriting Agreement dated
           ----------------------
February 4, 2002, by and between the Underwriters and Sunoco, Sunoco GP, the
MLP, GP LLC, and the OLP.

     1.2 Schedules. The following schedules are attached hereto:
         ---------

          (a) Schedule 2.2(a) - List of Sun Pipeline LP Assets
          (b) Schedule 2.6 - List of Services Out LLC Assets
          (c) Schedule 2.11(a) - List of Michigan In LLC Assets
          (d) Schedule 2.13(a) - List of Mid-Con In LLC Assets
          (e) Schedule 2.15(a) - List of Atlantic In LP Assets
          (f) Schedule 2.16 - List of Atlantic R&M In LP Assets
          (g) Schedule 2.17 - List of R&M In LP Assets
          (h) Schedule 2.40(a) - List of R&M In LP Additional Assets
          (i) Schedule 2.40(b) - List of Sun Pipeline LP Conrail Easement and
Intellectual Property Assets

     1.3 Recordation of Evidence of Ownership of Assets. In connection with the
         ----------------------------------------------
conversions and mergers under the applicable Acts that are referred to in the
recitals to this Agreement, the parties to this Agreement acknowledge that
certain jurisdictions in which the assets of the applicable parties to such
conversions and mergers are located may require that documents be recorded by
the entities resulting from such conversions and mergers in order to evidence
title in such entities. All such documents shall evidence such new ownership and
are not intended to modify, and shall not modify, any of the terms, covenants
and conditions herein set forth.

                                   ARTICLE II
                             Concurrent Transactions

     2.1 Merger of Pipe Line into Sun Texas. Pipe Line has merged into Sun
         ----------------------------------
Texas, with Sun Texas being the survivor.

     2.2 Allocation of Assets pursuant to Multiple Survivor Merger of Sun Texas
         ----------------------------------------------------------------------
and Sun Pipeline LP. Sun Texas and Sun Pipeline LP have merged under Article
-------------------
5.01 of the Texas Corporation Act and Article 6132a, Section 2.11 of the Texas
Limited Partnership Act, and the assets of Sun Texas prior to such merger have
been allocated to Sun Texas and Sun Pipeline LP in accordance with the Texas
Corporation Act and the Texas Limited Partnership Act in the following manner:

          (a) All of the assets described on Schedule 2.2(a) (the "Sun Pipeline
                                                                   ------------
LP Assets") are owned by Sun Pipeline LP.
---------

          (b) All of the assets owned by Sun Texas prior to such merger that do
not constitute Sun Pipeline LP Assets (the "Sun Texas Assets") continue to be
                                            ----------------
owned by Sun Texas.

     2.3 Merger of Borger into Services. Borger has merged into Services.
         ------------------------------

                                       17

<PAGE>

     2.4 Contribution of Services Common Stock by Sun Delaware to GP LLC. Sun
         ---------------------------------------------------------------
Delaware hereby grants, contributes, transfers, assigns and conveys to GP LLC,
its successors and assigns, for its and their own use forever, all right, title
and interest in and to .01% of the issued and outstanding common stock of
Services (the "Services Stock"), and GP LLC hereby accepts the Services Stock as
               --------------
an additional contribution to the capital of GP LLC.

     TO HAVE AND TO HOLD the Services Stock unto GP LLC, its successors and
assigns, together with all and singular the rights and appurtenances thereto in
anywise belonging, subject, however, to the terms and conditions stated in this
Agreement, forever.

     2.5 Conversion of Services to Services LP. Services has adopted articles of
         -------------------------------------
conversion and has converted to Services LP, having (a) GP LLC as the general
partner owning a 0.01% general partner interest and (b) Sun Delaware as the
limited partner owning a 99.99% limited partner interest.

     2.6 Contribution and Conveyance by Services LP to Services Out LLC of the
         ---------------------------------------------------------------------
Services Out LLC Assets. Services LP hereby grants, contributes, transfers,
-----------------------
assigns and conveys to Services Out LLC, its successors and assigns, for its and
their own use forever, all right, title and interest of Services LP in and to
all of the assets described on Schedule 2.6 (the "Services Out LLC Assets"), and
                                                  -----------------------
Services Out LLC hereby accepts the Services Out LLC Assets, as a contribution
to the capital of Services Out LLC, 99.99% on behalf of Services LP and 0.01% on
behalf of GP LLC, subject to all matters to be contained in the instruments of
conveyance covering the Services Out LLC Assets to evidence such contribution
and conveyance.

     TO HAVE AND TO HOLD the Services Out LLC Assets unto Services Out LLC, its
successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and
conditions stated in this Agreement, and in such instruments of conveyance
forever.

     2.7 Distribution by Services LP to Sun Delaware of Membership Interest in
         ---------------------------------------------------------------------
Services Out LLC. Services LP hereby grants, distributes, transfers, assigns and
----------------
conveys to Sun Delaware, its successors and assigns, for its and their own use
forever, all of Services LP's membership interest in Services Out LLC, being a
99.99% membership interest hereby conveyed (the "Services LP/Sun Delaware
                                                 ------------------------
Interest in Services Out LLC"), and Sun Delaware hereby accepts the Services
----------------------------
LP/Sun Delaware Interest in Services Out LLC.

     TO HAVE AND TO HOLD the Services LP/Sun Delaware Interest in Services Out
LLC unto Sun Delaware, its successors and assigns, together with all and
singular the rights and appurtenances thereto in anywise belonging, subject,
however, to the terms and conditions stated in this Agreement, forever.

     2.8 Distribution by Services LP to GP LLC of Membership Interest in
         ---------------------------------------------------------------
Services Out LLC. Services LP hereby grants, distributes, transfers, assigns and
----------------
conveys to GP LLC, its successors and assigns, for its and their own use
forever, all of Services LP's membership interest in Services Out LLC, being a
..01% membership interest hereby conveyed (the "Services LP/GP LLC Interest in
                                               ------------------------------
Services Out LLC"), and GP LLC hereby accepts the Services LP/GP LLC Interest in
----------------
Services Out LLC.

                                       18

<PAGE>

     TO HAVE AND TO HOLD the Services LP/GP LLC Interest in Services Out LLC
unto GP LLC, its successors and assigns, together with all and singular the
rights and appurtenances thereto in anywise belonging, subject, however, to the
terms and conditions stated in this Agreement, forever.

     2.9 Distribution by GP LLC to Sun Delaware of Membership Interest in
         ----------------------------------------------------------------
Services Out LLC. GP LLC hereby grants, distributes, transfers, assigns and
----------------
conveys to Sun Delaware, its successors and assigns, for its and their own use
forever, all of its interest in Services Out LLC, being a .01% membership
interest hereby conveyed (the "GP LLC Interest in Services Out LLC"), and Sun
                               -----------------------------------
Delaware hereby accepts the GP LLC Interest in Services Out LLC.

     TO HAVE AND TO HOLD the GP LLC Interest in Services Out LLC unto Sun
Delaware, its successors and assigns, together with all and singular the rights
and appurtenances thereto in anywise belonging, subject, however, to the terms
and conditions stated in this Agreement, forever.

     2.10 Merger of Michigan into Michigan Texas. Michigan has merged into
          --------------------------------------
Michigan Texas.

     2.11 Allocation of Assets pursuant to Multiple Survivor Merger of Michigan
          ---------------------------------------------------------------------
Texas and Michigan In LLC. Michigan Texas and Michigan In LLC have merged under
-------------------------
Article 10.01 of the Texas LLC Act, and the assets of Michigan Texas prior to
such merger have been allocated to Michigan Texas and Michigan In LLC in
accordance with the Texas LLC Act in the following manner:

          (a) All of the assets described on Schedule 2.11(a) (the "Michigan In
                                                                    -----------
LLC Assets") are owned by Michigan In LLC.
----------

          (b) All of the assets owned by Michigan Texas prior to such merger
that do not constitute part of the Michigan In LLC Assets (the "Michigan Texas
                                                                --------------
Assets") continue to be owned by Michigan Texas.
------

     2.12 Merger of Mid-Con into Mid-Con Texas. Mid-Con has merged into Mid-Con
          ------------------------------------
Texas.

     2.13 Allocation of Assets pursuant to Multiple Survivor Merger of Mid-Con
          --------------------------------------------------------------------
Texas and Mid-Con In LLC. Mid-Con Texas and Mid-Con In LLC have merged under
------------------------
Article 10.01 of the Texas LLC Act, and the assets of Mid-Con Texas prior to
such merger have been allocated to Mid-Con Texas and Mid-Con In LLC in
accordance with the Texas LLC Act in the following manner:

          (a) All of the assets described on Schedule 2.13(a) (the "Mid-Con In
                                                                    ----------
LLC Assets") are owned by Mid-Con In LLC.
----------

          (b) All of the assets owned by Mid-Con Texas prior to such merger that
do not constitute part of the Mid-Con In LLC Assets (the "Mid-Con Texas Assets")
                                                          --------------------
continue to be owned by Mid-Con Texas.

                                       19

<PAGE>

     2.14 Merger of Atlantic into Atlantic Out LP. Atlantic has merged into
          ---------------------------------------
Atlantic Out LP.

     2.15 Allocation of Assets pursuant to Multiple Survivor Merger of Atlantic
          ---------------------------------------------------------------------
Out LP and Atlantic In LP. Atlantic Out LP and Atlantic In LP have merged under
-------------------------
Article 6132a, Section 2.11 of the Texas Limited Partnership Act, and the assets
of Atlantic Out LP prior to such merger have been allocated to Atlantic Out LP
and Atlantic In LP in accordance with the Texas Limited Partnership Act in the
following manner:

          (a) All of the assets described on Schedule 2.15(a) (the "Atlantic In
                                                                    -----------
LP Assets") are owned by Atlantic In LP.
---------

          (b) All of the assets owned by Atlantic Out LP prior to such merger
that do not constitute part of the Atlantic In LP Assets (the "Atlantic Out LP
                                                               ---------------
Assets") continue to be owned by Atlantic Out LP.
------

     2.16 Contribution and Conveyance by Atlantic Refining to Atlantic R&M In LP
          ----------------------------------------------------------------------
of the Atlantic R&M In LP Assets and Issuance of Membership Interest in Atlantic
--------------------------------------------------------------------------------
In LLC to Atlantic Refining.
---------------------------

          (a) Atlantic Refining hereby grants, contributes, transfers, assigns
and conveys to Atlantic R&M In LP, its successors and assigns, for its and their
own use forever, all right, title and interest of Atlantic Refining in and to
all of the assets described on Schedule 2.16 (the "Atlantic R&M In LP Assets"),
                                                   -------------------------
99.99% on behalf of Atlantic Refining and 0.01% on behalf of Atlantic In LLC,
and Atlantic R&M In LP hereby accepts the Atlantic R&M In LP Assets, as a
contribution to the capital of Atlantic R&M In LP in exchange for a limited
partner interest in Atlantic R&M In LP, subject to all matters to be contained
in the instruments of conveyance covering the Atlantic R&M In LP Assets to
evidence such contribution and conveyance.

     TO HAVE AND TO HOLD the Atlantic R&M In LP Assets unto Atlantic R&M In LP,
its successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and
conditions stated in this Agreement and in such instruments of conveyance,
forever.

          (b) In consideration for the contribution made on behalf of Atlantic
In LLC as set forth in subsection (a) immediately above, Atlantic Refining has
received from Atlantic In LLC a membership interest in Atlantic In LLC.

          (c) The percentage ownership interests of Atlantic Refining in
Atlantic In LLC will be determined after the Effective Date by the members
thereof in accordance with the terms of the limited liability company agreement
of Atlantic In LLC.

     2.17 Contribution and Conveyance by R&M to R&M In LP of the R&M In LP
          ----------------------------------------------------------------
Assets. R&M hereby grants, contributes, transfers, assigns and conveys to R&M In
------
LP, its successors and assigns, for its and their own use forever, all right,
title and interest of R&M in and to all of the assets described on Schedule 2.17
(the "R&M In LP Assets"), 99.99% on behalf of R&M and 0.01% on behalf of R&M In
      ----------------
LLC, and R&M In LP hereby accepts the R&M In LP Assets, as a contribution to the
capital of R&M In LP, subject to all matters to be contained in the

                                       20

<PAGE>

instruments of conveyance covering the R&M In LP Assets to evidence such
contribution and conveyance.

     TO HAVE AND TO HOLD the R&M In LP Assets unto R&M In LP, its successors and
assigns, together with all and singular the rights and appurtenances thereto in
anywise belonging, subject, however, to the terms and conditions stated in this
Agreement and in such instruments of conveyance, forever.

     2.18 Contribution by Sun Delaware to Sunoco GP of Interests in GP LLC,
          ----------------------------------------------------------------------
Services LP, Michigan In LLC, Explorer Pipeline Company, and Mid-Con In LLC. Sun
---------------------------------------------------------------------------
Delaware hereby grants, contributes, transfers, assigns and conveys to Sunoco
GP, its successors and assigns, for its and their own use forever, all of its
right, title and interest in and to (a) its 100% membership interest in GP LLC ,
(b) its 99.99% limited partner interest in Services LP, (c) its 100% membership
interest in Michigan In LLC, (d) its 9.4% capital stock interest in Explorer
Pipeline Company, and (e) its 100% membership interest in Mid-Con In LLC (herein
collectively called the "Sun Delaware Aggregate Interests"), and Sunoco GP
                         --------------------------------
hereby accepts the Sun Delaware Aggregate Interests as an additional
contribution to the capital of Sunoco GP in exchange for the continuation of its
13% membership interest in Sunoco GP. The 13% membership interest in Sunoco GP
is subject to further adjustment after the Effective Date in accordance with the
terms and provisions of the limited liability company agreement of Sunoco GP.

     TO HAVE AND TO HOLD the Sun Delaware Aggregate Interests unto Sunoco GP,
its successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and
conditions stated in this Agreement, forever.

     2.19 Contribution by Sun Texas to Sunoco GP of Interests in Pipeline GP LLC
          ----------------------------------------------------------------------
and Sun Pipeline LP. Sun Texas hereby grants, contributes, transfers, assigns
-------------------
and conveys to Sunoco GP, its successors and assigns, for its and their own use
forever, all of its right, title and interest in and to (a) its 100% membership
interest in Pipe Line GP LLC and (b) its 99.99% limited partner interest in Sun
Pipeline LP (herein collectively called the "Sun Texas Aggregate Interests"),
                                             -----------------------------
and Sunoco GP hereby accepts the Sun Texas Aggregate Interests as a contribution
to the capital of Sunoco GP in exchange for a 45% membership interest. The 45%
membership interest in Sunoco GP is subject to further adjustment after the
Effective Date in accordance with the terms and provisions of the limited
liability company agreement of Sunoco GP.

     TO HAVE AND TO HOLD the Sun Texas Aggregate Interests unto Sunoco GP, its
successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and
conditions stated in this Agreement, forever.

     2.20 Contribution by R&M to Sunoco GP of Interests in R&M In LLC and R&M In
          ----------------------------------------------------------------------
LP. R&M hereby grants, contributes, transfers, assigns and conveys to Sunoco GP,
--
its successors and assigns, for its and their own use forever, all of its right,
title and interest in and to (a) its 100% membership interest in R&M In LLC and
(b) its 99.99% limited partner interest in R&M In LP (herein collectively called
the "R&M Aggregate Interests"), and Sunoco GP hereby accepts the R&M Aggregate
     -----------------------
Interests as a contribution to the capital of Sunoco GP in exchange

                                       21

<PAGE>

for a 25% membership interest. The 25% membership interest in Sunoco GP is
subject to further adjustment after the Effective Date in accordance with the
terms and provisions of the limited liability company agreement of Sunoco GP.

     TO HAVE AND TO HOLD the R&M Aggregate Interests unto Sunoco GP, its
successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and
conditions stated in this Agreement, forever.

     2.21 Contribution by Petroleum to Sunoco GP of Interests in Atlantic In LLC
          ----------------------------------------------------------------------
and Atlantic In LP . Petroleum hereby grants, contributes, transfers, assigns
------------------
and conveys to Sunoco GP, its successors and assigns, for its and their own use
forever, all of its right, title and interest in and to (a) its 99.99%
membership interest in Atlantic In LLC and (b) its 99.99% limited partner
interest in Atlantic In LP (herein collectively called the "Petroleum Aggregate
                                                            -------------------
Interests"), and Sunoco GP hereby accepts the Petroleum Aggregate Interests as a
---------
contribution to the capital of Sunoco GP in exchange for a 10% membership
interest. The 10% membership interest in Sunoco GP is subject to further
adjustment after the Effective Date in accordance with the terms and provisions
of the limited liability company agreement of Sunoco GP.

     TO HAVE AND TO HOLD the Petroleum Aggregate Interests unto Sunoco GP, its
successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and
conditions stated in this Agreement, forever.

     2.22 Contribution by Atlantic Refining to Sunoco GP of Interests in
          ----------------------------------------------------------------------
Atlantic In LLC and Atlantic R&M In LP. Atlantic Refining hereby grants,
--------------------------------------
contributes, transfers, assigns and conveys to Sunoco GP, its successors and
assigns, for its and their own use forever, all of its right, title and interest
in and to (a) its .01% membership interest in Atlantic In LLC and (b) its 99.99%
limited partner interest in Atlantic R&M In LP (herein collectively called the
"Atlantic Refining Aggregate Interests"), and Sunoco GP hereby accepts the
 -------------------------------------
Atlantic Refining Aggregate Interests as a contribution to the capital of Sunoco
GP in exchange for a 7% membership interest. The 7% membership interest in
Sunoco GP is subject to further adjustment after the Effective Date in
accordance with the terms and provisions of the limited liability company
agreement of Sunoco GP.

     TO HAVE AND TO HOLD the Atlantic Refining Aggregate Interests unto Sunoco
GP, its successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and
conditions stated in this Agreement, forever.

     2.23 Contribution by Sunoco GP to the MLP of Limited Liability Company
          -----------------------------------------------------------------
Interests and Limited Partner Interests. Sunoco GP hereby grants, contributes,
---------------------------------------
transfers, assigns and conveys to the MLP, its successors and assigns, for its
and their own use forever, all of the Sun Delaware Aggregate Interests, Sun
Texas Aggregate Interests, R&M Aggregate Interests, Petroleum Aggregate
Interests and Atlantic Refining Aggregate Interests (herein collectively called
the "Sunoco GP Aggregate Interests"), and the MLP hereby accepts the Sunoco GP
     -----------------------------
Aggregate Interests as an additional contribution to the capital of the MLP in
exchange for (a) a

                                       22

<PAGE>

continuation of Sunoco GP's 2% general partner interest and its Incentive
Distribution Rights in the MLP, (b) 5,633,639 Common Units in the MLP, (c)
11,383,639 Subordinated Units in the MLP, and (d) the Sunoco GP Special LP
Interest.

     TO HAVE AND TO HOLD the Sunoco GP Aggregate Interests unto the MLP its
successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and
conditions stated in this Agreement, forever.

     2.24 Public Cash Contribution. The parties to this Agreement acknowledge a
          ------------------------
cash contribution of $116,437,500 from the public to the MLP in connection with
the Offering in exchange for 5,750,000 Common Units in the MLP.

     2.25 MLP Receipt of Cash Contribution. The MLP acknowledges receipt of
          --------------------------------
$116,437,500 in cash obtained from the Offering as a capital contribution to the
MLP, and the parties to this Agreement acknowledge that the MLP has used all of
such capital contribution (a) to pay the Offering Costs that are due and payable
or that have been previously paid and (b) to make an additional capital
contribution to R&M In LP as described in Section 2.27.

     2.26 Merger of R&M In LLC, Pipe Line GP LLC and Atlantic In LLC into GP
          ------------------------------------------------------------------
LLC. R&M In LLC, Pipe Line GP LLC and Atlantic In LLC have merged into GP LLC.
---

     2.27 MLP Cash Contribution to R&M In LP and Stock Contribution to Sun
          ----------------------------------------------------------------
Pipeline LP.
-----------

          (a) The parties to this Agreement acknowledge the contribution by the
MLP to R&M In LP and the receipt by R&M In LP of the Net Equity Proceeds;

          (b) The MLP hereby grants, contributes, transfers, assigns and conveys
to Sun Pipeline LP, its successors and assigns, for its and their own use
forever, all of its 9.4% capital stock interest in Explorer Pipeline Company
("MLP Interest in Explorer"), and Sun Pipeline LP hereby accepts the MLP
  ------------------------
Interest in Explorer as an additional contribution to Sun Pipeline LP.

The contributions made by the MLP in clause (a) and (b) immediately above have
been made by the MLP 99.99% on behalf of the MLP as a limited partner and .01%
on behalf of GP LLC as a general partner of R&M In LP and Sun Pipeline LP,
respectively.

          TO HAVE AND TO HOLD the MLP Interest in Explorer unto Sun Pipeline LP,
its successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and
conditions stated in this Agreement, forever.

     2.28 Contribution of Interests in the Entities by the MLP to the OLP. The
          ---------------------------------------------------------------
MLP hereby grants, contributes, transfers, assigns and conveys to the OLP, its
successors and assigns, for its and their own use forever, all of its right,
title and interest in and to the Entities (being all of the following respective
interests which are herein collectively called the "MLP Aggregate Interests"):
                                                    -----------------------

                                       23

<PAGE>

          (a) a 99.99% limited partner interest in Sun Pipeline LP;

          (b) a 99.99% limited partner interest in Services LP;

          (c) a 100% membership interest in Michigan In LLC;

          (d) a 100% membership interest in Mid-Con In LLC;

          (e) a 99.99% limited partner interest in Atlantic In LP;

          (f) a 99.99% limited partner interest in Atlantic R&M In LP; and

          (g) a 99.99% limited partner interest in R&M In LP.

     The OLP hereby accepts the MLP Aggregate Interests as an additional
contribution to the capital of the OLP (99.99% on behalf of the MLP and .01% on
behalf of GP LLC with respect to the membership interests in Michigan In LLC and
Mid-Con In LLC) in exchange for the issuance of the MLP Special LP Interest to
the MLP.

     TO HAVE AND TO HOLD the MLP Aggregate Interests unto the OLP, its
successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and
conditions stated in this Agreement, forever.

     2.29 Contribution of Interests in Certain Entities by GP LLC to OLP GP LLC.
          ---------------------------------------------------------------------
GP LLC hereby grants, contributes, transfers, assigns and conveys to OLP GP LLC,
its successors and assigns, for its and their own use forever, all of its right,
title and interest in and to the following Entities (being all of the following
respective interests which are herein collectively called the "GP LLC Aggregate
                                                               ----------------
Interests"):
---------

          (a) a .01% general partner interest in R&M In LP;

          (b) a .01% general partner interest in Sun Pipeline LP;

          (c) a .01% general partner interest in Atlantic In LP;

          (d) a .01% general partner interest in Atlantic R&M In LP; and

          (e) a .01% general partner interest in Services LP.

     OLP GP LLC hereby accepts the GP LLC Aggregate Interests as an additional
contribution to the capital of OLP GP LLC.

     TO HAVE AND TO HOLD the GP LLC Aggregate Interests unto OLP GP LLC, its
successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and
conditions stated in this Agreement, forever.

     2.30 Contribution of Interest in OLP GP LLC by GP LLC to the OLP. GP LLC
          -----------------------------------------------------------
hereby grants, contributes, transfers, assigns and conveys to the OLP, its
successors and assigns, all of

                                       24

<PAGE>

its membership interest in OLP GP LLC ("GP LLC's Interest in OLP GP LLC"), and
                                        --------------------------------
the OLP hereby accepts GP LLC's Interest in OLP GP LLC as an additional
contribution to the capital of the OLP.

     TO HAVE AND TO HOLD GP LLC's Interest in OLP GP LLC unto the OLP, its
successors and assigns, together with all and singular the rights and
appurtenances thereto in anywise belonging, subject, however, to the terms and
conditions stated in this Agreement, forever.

     2.31 Distribution of Net Proceeds of Indebtedness from the OLP to the MLP.
          --------------------------------------------------------------------
The parties to this Agreement acknowledge that the OLP has sold $250 million in
aggregate principal amount of its 7.25% Senior Notes due February 15, 2012, on a
recourse basis and has distributed to the MLP the Net Debt Proceeds in
redemption of the MLP Special LP Interest. The MLP hereby acknowledges receipt
of the Net Debt Proceeds from the OLP in redemption of the MLP Special LP
Interest.

     2.32 Distribution of Net Proceeds of Indebtedness from the MLP to Sunoco
          ------------------------------------------------------------------
GP. The parties to this Agreement acknowledge that the MLP has distributed the
--
Net Debt Proceeds to Sunoco GP in redemption of the Sunoco GP Special LP
Interest. Sunoco GP hereby acknowledges receipt of the Net Debt Proceeds from
the MLP in redemption of the Sunoco GP Special LP Interest.

     2.33 Loan from Sunoco GP to R&M. The parties to this Agreement acknowledge
          --------------------------
that Sunoco GP has made a loan to R&M of the Net Debt Proceeds.

     2.34 Redemption of Sun Delaware's Interest in the MLP by the MLP. For and
          -----------------------------------------------------------
in consideration of the payment by the MLP of $980, the MLP hereby redeems all
of Sun Delaware's limited partner interest in the MLP.

     2.35 (Intentionally Omitted)Contribution of Stock by Sun Delaware to
          ---------------------------------------------------------------
Sun Texas. Sun Delaware hereby grants, contributes, transfers and conveys to Sun
---------
Texas, its successors and assigns, for its and their use forever, all right,
title and interest in and to (a) 7,108 shares of the issued and outstanding
common stock of West Texas Gulf Pipe Line Company, being all of Sun Delaware's
interest in West Texas Gulf Pipe Line Company, and (b) 777 shares of the issued
and outstanding common stock of Inland Corporation, being all of Sun Delaware's
interest in Inland Corporation (herein collectively called the "Sun Delaware
                                                                ------------
Stock"), and Sun Texas hereby accepts the Sun Delaware Stock as a contribution
-----
to the capital of Sun Texas.

     TO HAVE AND TO HOLD the Sun Delaware Stock unto Sun Texas, its successors
and assigns, together with all and singular the rights and appurtenances thereto
in anywise belonging, subject, however, to the terms and conditions stated in
this Agreement, forever.

     2.37 Contribution of Note Receivable by Petroleum to Delaware. Delaware and
          --------------------------------------------------------
the other parties to this Agreement acknowledge that Petroleum has made an
additional contribution to Delaware of its note receivable in the principal
amount of $250 million

                                       25

<PAGE>

     2.38 Merger of Services LP, Atlantic In LP, Michigan In LLC, and Mid-Con In
          ----------------------------------------------------------------------
LLC into Sun Pipeline LP. Services LP, Atlantic In LP, Michigan In LLC, and
------------------------
Mid-Con In LLC have merged into Sun Pipeline LP.

     2.39 Merger of Atlantic R&M In LP into R&M In LP. Atlantic R&M In LP has
          -------------------------------------------
merged into R&M In LP.

     2.40 Allocation of Assets pursuant to Multiple Survivor Merger of Sun
          ----------------------------------------------------------------
Pipeline LP and R&M In LP. Sun Pipeline LP and R&M In LP merged under Article
-------------------------
6132a, Section 2.11 of the Texas Limited Partnership Act, and the following
allocations have been made in accordance with the Texas Limited Partnership Act:

          (a) The assets of Sun Pipeline LP prior to such merger have been
allocated to Sun Pipeline LP and R&M In LP in the following manner:

          (i) All of the assets described on Schedule 2.40(a) (the "R&M In LP
                                                                    ---------
     Additional Assets") are owned by R&M In LP.
     ----------------

          (ii) All of the assets owned by Sun Pipeline LP prior to such merger
that do not constitute part of the R&M In LP Additional Assets (the "Sun
                                                                     ----
Pipeline LP Additional Assets") continue to be owned by Sun Pipeline LP.
-----------------------------

          (b) The assets of R&M In LP prior to such merger have been allocated
to R&M In LP and Sun Pipeline LP in the following manner:

          (i) All of the assets described on Schedule 2.40(b) (the "Sun Pipeline
                                                                    ------------
     LP Conrail Easement and Intellectual Property Assets") are owned by Sun
     ----------------------------------------------------
    Pipeline

LP.

          (ii) All of the assets owned by R&M In LP prior to such merger that do
     not constitute part of the Sun Pipeline LP Conrail Easement and
     Intellectual Property Assets (the "R&M In LP Non-Conrail Easement and
                                        ----------------------------------
     Non-Intellectual Property Assets") continue to be owned by Sun Pipeline LP.
     --------------------------------

     2.41 Change of Name of Sun Texas. Sun Texas will change its name to Sun
           --------------------------
Pipe Line Company after the Effective Date.

     2.42 Contribution of Additional Assets. Reference is herein made to the
          ---------------------------------
Sunoco Logistics Partners L.P. Pro Forma Balance Sheet (Unaudited) and the
Accompanying Notes dated September 30, 2001, contained in the Registration
Statement (the "Pro Forma Balance Sheet"). In addition to the Assets contributed
                -----------------------
by the applicable parties to this Agreement (the "Contributing Parties") to the
                                                  ---------------------
MLP and its subsidiaries (by operation of law or otherwise) as reflected in this
Agreement, the Contributing Parties shall also contribute as of the Effective
Time an amount of (i) working capital (current assets and current liabilities),
(ii) deferred charges and other assets and (iii) other deferred credits and
liabilities associated with the business of the MLP consistent with the Pro
Forma Balance Sheet. As soon as practical after the Effective Date, Sunoco shall
determine, or cause to be determined, the actual amount of such contributed
working capital, deferred charges and other assets referred to in this Section
2.42,

                                       26

<PAGE>

provided that the determination shall be made in a manner consistent with the
Pro Forma Balance Sheet.

     2.43 Specific Conveyances. To further evidence the contributions of the
          --------------------
Assets reflected in this Agreement, each party making such contribution may have
executed and delivered to the party receiving such contribution certain
conveyance, assignment and bill of sale instruments (the "Specific
                                                          --------
Conveyances"). The Specific Conveyances shall evidence and perfect such sale and
-----------
contribution made by this Agreement and shall not constitute a second conveyance
of any assets or interests therein and shall be subject to the terms of this
Agreement.

                                  ARTICLE III
                        Assumption of Certain Liabilities

     3.1 Assumption of Sun Pipeline LP Liabilities and Sun Texas Liabilities. In
         -------------------------------------------------------------------
connection with the merger of Sun Texas and Sun Pipeline LP and the allocation
of assets as set forth in Section 2.2 above, the following shall be applicable:

          (a) Sun Pipeline LP hereby assumes and agrees to duly and timely pay,
perform and discharge all of the Sun Pipeline LP Liabilities, to the full extent
that Sun Texas has been heretofore or would have been in the future obligated to
pay, perform and discharge the Sun Pipeline LP Liabilities were it not for such
merger and the execution and delivery of this Agreement; provided, however, that
said assumption and agreement to duly and timely pay, perform and discharge the
Sun Pipeline LP Liabilities shall not (i) increase the obligation of Sun
Pipeline LP with respect to the Sun Pipeline LP Liabilities beyond that of Sun
Texas, (ii) waive any valid defense that was available to Sun Texas with respect
to the Sun Pipeline LP Liabilities, or (iii) enlarge any rights or remedies of
any third party under any of the Sun Pipeline LP Liabilities.

          (b) Sun Texas hereby assumes and agrees to duly and timely pay,
perform and discharge all of the Sun Texas Liabilities, to the full extent that
Sun Texas has been heretofore or would have been in the future obligated to pay,
perform and discharge the Sun Texas Liabilities were it not for such merger and
the execution and delivery of this Agreement; provided, however, that said
assumption and agreement to duly and timely pay, perform and discharge the Sun
Texas Liabilities shall not (i) increase the obligation of Sun Texas with
respect to the Sun Texas Liabilities beyond that of Sun Texas before such
merger, (ii) waive any valid defense that was available to Sun Texas before such
merger with respect to the Sun Texas Liabilities, or (iii) enlarge any rights or
remedies of any third party under any of the Sun Texas Liabilities.

     3.2 Assumption of Services Out LLC Liabilities by Services Out LLC. In
         --------------------------------------------------------------
connection with the contribution by Services LP of the Services Out LLC Assets
to Services Out LLC, as set forth in Section 2.6 above, Services Out LLC hereby
assumes and agrees to duly and timely pay, perform and discharge all of the
Services Out LLC Liabilities, to the full extent that Services LP has been
heretofore or would have been in the future obligated to pay, perform and
discharge the Services Out LLC Liabilities were it not for such contribution and
the execution and delivery of this Agreement; provided, however, that said
assumption and agreement to duly and timely pay, perform and discharge the
Services Out LLC Liabilities shall not (i) increase the obligation of Services
Out LLC with respect to the Services Out LLC Liabilities beyond that of Services
LP,

                                       27

<PAGE>

(ii) waive any valid defense that was available to Services LP with respect to
the Services Out LLC Liabilities or (iii) enlarge any rights or remedies of any
third party under any of the Services Out LLC Liabilities.

     3.3 Assumption of Services LP/Sun Delaware Interest in Services Out LLC
         -------------------------------------------------------------------
Liabilities by Sun Delaware. In connection with the distribution by Services LP
---------------------------
of the Services LP/Sun Delaware Interest in Services Out LLC to Sun Delaware, as
set forth in Section 2.7 above, Sun Delaware, according to such membership
percentage interest in Services Out LLC, hereby assumes and agrees to duly and
timely pay, perform and discharge all of the Services LP/Sun Delaware Interest
in Services Out LLC Liabilities, to the full extent that Services LP has been
heretofore or would have been in the future obligated to pay, perform and
discharge such obligations and liabilities, were it not for the execution and
delivery of this Agreement; provided, however, that said assumption and
agreement to duly and timely pay, perform and discharge the Services LP/Sun
Delaware Interest in Services Out LLC Liabilities shall not (i) increase the
obligation of Sun Delaware with respect to the Services LP/Sun Delaware Interest
in Services Out LLC Liabilities beyond that of Services LP, (ii) waive any valid
defense that was available to Services LP with respect to the Services LP/Sun
Delaware Interest In Services Out LLC Liabilities or (iii) enlarge any rights or
remedies of any third party under any of the Services LP/Sun Delaware Interest
In Services Out LLC Liabilities.

     3.4 Assumption of Services LP/GP LLC Interest in Services Out LLC
         -------------------------------------------------------------
Liabilities by GP LLC. In connection with the distribution by Services LP of the
---------------------
Services LP/GP LLC Interest in Services Out LLC to GP LLC, as set forth in
Section 2.8 above, GP LLC, according to such membership percentage interest in
Services Out LLC, hereby assumes and agrees to duly and timely pay, perform and
discharge all of the Services LP/GP LLC Interest in Services Out LLC
Liabilities, to the full extent that Services LP has been heretofore or would
have been in the future obligated to pay, perform and discharge such obligations
and liabilities, were it not for the execution and delivery of this Agreement;
provided, however, that said assumption and agreement to duly and timely pay,
perform and discharge the Services LP/GP LLC Interest in Services Out LLC
Liabilities shall not (i) increase the obligation of GP LLC with respect to the
Services LP/GP LLC Interest in Services Out LLC Liabilities beyond that of
Services LP, (ii) waive any valid defense that was available to Services LP with
respect to the Services LP/GP LLC Interest in Services Out LLC Liabilities or
(iii) enlarge any rights or remedies of any third party under any of the
Services LP/GP LLC Interest in Services Out LLC Liabilities.

     3.5 Assumption of GP LLC Interest in Services Out LLC Liabilities by Sun
         --------------------------------------------------------------------
Delaware. In connection with the distribution by GP LLC of the GP LLC Interest
--------
in Services Out LLC to Sun Delaware, as set forth in Section 2.9 above, Sun
Delaware, according to such membership percentage interest in Services Out LLC
hereby assumes and agrees to duly and timely pay, perform and discharge all of
the GP LLC Interest in Services Out LLC Liabilities, to the full extent that GP
LLC has been heretofore or would have been in the future obligated to pay,
perform and discharge such obligations and liabilities, were it not for the
execution and delivery of this Agreement; provided, however, that said
assumption and agreement to duly and timely pay, perform and discharge the GP
LLC Interest in Services Out LLC Liabilities shall not (i) increase the
obligation of Sun Delaware with respect to the GP LLC Interest in Services Out
LLC Liabilities beyond that of GP LLC to the extent of such interest contributed
by GP LLC, (ii) waive any valid defense that was available to GP LLC with
respect to the GP LLC Interest in

                                       28

<PAGE>

Services Out LLC Liabilities or (iii) enlarge any rights or remedies of any
third party under any of the GP LLC Interest in Services Out LLC Liabilities.

     3.6 Assumption of Michigan In LLC Liabilities and Michigan Texas
         ------------------------------------------------------------
Liabilities. In connection with the merger of Michigan Texas and Michigan In LLC
-----------
and the allocation of assets as set forth in Section 2.11 above, the following
shall be applicable:

          (a) Michigan In LLC hereby assumes and agrees to duly and timely pay,
perform and discharge all of the Michigan In LLC Liabilities, to the full extent
that Michigan Texas has been heretofore or would have been in the future
obligated to pay, perform and discharge the Michigan In LLC Liabilities were it
not for such merger and the execution and delivery of this Agreement; provided,
however, that said assumption and agreement to duly and timely pay, perform and
discharge the Michigan In LLC Liabilities shall not (i) increase the obligation
of Michigan In LLC with respect to the Michigan In LLC Liabilities beyond that
of Michigan Texas, (ii) waive any valid defense that was available to Michigan
Texas with respect to the Michigan In LLC Liabilities or (iii) enlarge any
rights or remedies of any third party under any of the Michigan In LLC
Liabilities.

          (b) Michigan Texas hereby assumes and agrees to duly and timely pay,
perform and discharge all of the Michigan Texas Liabilities, to the full extent
that Michigan Texas has been heretofore or would have been in the future
obligated to pay, perform and discharge the Michigan Texas Liabilities were it
not for such merger and the execution and delivery of this Agreement; provided,
however, that said assumption and agreement to duly and timely pay, perform and
discharge the Michigan Texas Liabilities shall not (i) increase the obligation
of Michigan Texas with respect to the Michigan Texas Liabilities beyond that of
Michigan Texas before such merger, (ii) waive any valid defense that was
available to Michigan Texas with respect to the Michigan Texas Liabilities
before such merger or (iii) enlarge any rights or remedies of any third party
under any of the Michigan Texas Liabilities.

     3.7 Assumption of Mid-Con In Liabilities and Mid-Con Texas Liabilities. In
         ------------------------------------------------------------------
connection with the merger of Mid-Con Texas and Mid-Con In LLC and the
allocation of assets as set forth in Section 2.13 above, the following shall be
applicable:

          (a) Mid-Con In LLC hereby assumes and agrees to duly and timely pay,
perform and discharge all of the Mid-Con In LLC Liabilities, to the full extent
that Mid-Con Texas has been heretofore or would have been in the future
obligated to pay, perform and discharge the Mid-Con In LLC Liabilities were it
not for such merger and the execution and delivery of this Agreement; provided,
however, that said assumption and agreement to duly and timely pay, perform and
discharge the Mid-Con In LLC Liabilities shall not (i) increase the obligation
of Mid-Con In LLC with respect to the Mid-Con In LLC Liabilities beyond that of
Mid-Con Texas, (ii) waive any valid defense that was available to Mid-Con Texas
with respect to the Mid-Con In LLC Liabilities or (iii) enlarge any rights or
remedies of any third party under any of the Mid-Con In LLC Liabilities.

          (b) Mid-Con Texas hereby assumes and agrees to duly and timely pay,
perform and discharge all of the Mid-Con Texas Liabilities, to the full extent
that Mid-Con Texas has been heretofore or would have been in the future
obligated to pay, perform and

                                       29

<PAGE>

discharge the Mid-Con Texas Liabilities were it not for such merger and the
execution and delivery of this Agreement; provided, however, that said
assumption and agreement to duly and timely pay, perform and discharge the
Mid-Con Texas Liabilities shall not (i) increase the obligation of Mid-Con Texas
with respect to the Mid-Con Texas Liabilities beyond that of Mid-Con Texas
before such merger, (ii) waive any valid defense that was available to Mid-Con
Texas with respect to the Mid-Con Texas Liabilities before such merger or (iii)
enlarge any rights or remedies of any third party under any of the Mid-Con Texas
Liabilities.

     3.8 Assumption of Atlantic In LP Liabilities and Atlantic Out LP
         ------------------------------------------------------------
Liabilities. In connection with the merger of Atlantic Out LP and Atlantic In LP
-----------
and the allocation of assets as set forth in Section 2.15 above, the following
shall be applicable:

          (a) Atlantic In LP hereby assumes and agrees to duly and timely pay,
perform and discharge all of the Atlantic In LP Liabilities, to the full extent
that Atlantic Out LP has been heretofore or would have been in the future
obligated to pay, perform and discharge the Atlantic In LP Liabilities were it
not for such merger and the execution and delivery of this Agreement; provided,
however, that said assumption and agreement to duly and timely pay, perform and
discharge the Atlantic In LP Liabilities shall not (i) increase the obligation
of Atlantic In LP with respect to the Atlantic In LP Liabilities beyond that of
Atlantic Out LP, (ii) waive any valid defense that was available to Atlantic Out
LP with respect to the Atlantic In LP Liabilities or (iii) enlarge any rights or
remedies of any third party under any of the Atlantic In LP Liabilities.

          (b) Atlantic Out LP hereby assumes and agrees to duly and timely pay,
perform and discharge all of the Atlantic Out LP Liabilities, to the full extent
that Atlantic Out LP has been heretofore or would have been in the future
obligated to pay, perform and discharge the Atlantic Out LP Liabilities were it
not for such merger and the execution and delivery of this Agreement; provided,
however, that said assumption and agreement to duly and timely pay, perform and
discharge the Atlantic Out LP Liabilities shall not (i) increase the obligation
of Atlantic Out LP with respect to the Atlantic Out LP Liabilities beyond that
of Atlantic Out LP before such merger, (ii) waive any valid defense that was
available to Atlantic Out LP with respect to the Atlantic Out LP Liabilities
before such merger or (iii) enlarge any rights or remedies of any third party
under any of the Atlantic Out LP Liabilities.

     3.9 Assumption of Atlantic R&M In LP Liabilities by Atlantic R&M In LP. In
         ------------------------------------------------------------------
connection with the contribution by Atlantic Refining of the Atlantic R&M In LP
Assets to Atlantic R&M In LP, as set forth in Section 2.16 above, Atlantic R&M
In LP hereby assumes and agrees to duly and timely pay, perform and discharge
all of the Atlantic R&M In LP Liabilities, to the full extent that Atlantic
Refining has been heretofore or would have been in the future obligated to pay,
perform and discharge the Atlantic R&M In LP Liabilities were it not for such
contribution and the execution and delivery of this Agreement; provided,
however, that said assumption and agreement to duly and timely pay, perform and
discharge the Atlantic R&M In LP Liabilities shall not (i) increase the
obligation of Atlantic R&M In LP with respect to the Atlantic R&M In LP
Liabilities beyond that of Atlantic Refining, (ii) waive any valid defense that
was available to Atlantic Refining with respect to the Atlantic R&M In LP
Liabilities or (iii) enlarge any rights or remedies of any third party under any
of the Atlantic R&M In LP Liabilities.

                                       30

<PAGE>

     3.10 Assumption of R&M In LP Liabilities by R&M In LP. In connection with
          ------------------------------------------------
the contribution by R&M of the R&M In LP Assets to R&M In LP, as set forth in
Section 2.17 above, R&M In LP hereby assumes and agrees to duly and timely pay,
perform and discharge all of the R&M In LP Liabilities, to the full extent that
R&M has been heretofore or would have been in the future obligated to pay,
perform and discharge the R&M In LP Liabilities were it not for such
contribution and the execution and delivery of this Agreement; provided,
however, that said assumption and agreement to duly and timely pay, perform and
discharge the R&M In LP Liabilities shall not (i) increase the obligation of R&M
In LP with respect to the R&M In LP Liabilities beyond that of R&M, (ii) waive
any valid defense that was available to R&M with respect to the R&M In LP
Liabilities or (iii) enlarge any rights or remedies of any third party under any
of the R&M In LP Liabilities.

     3.11 Assumption of Sun Delaware Liabilities by Sunoco GP. In connection
          ---------------------------------------------------
with the contributions by Sun Delaware of the Sun Delaware Aggregate Interests
to Sunoco GP, as set forth in Section 2.18 above, Sunoco GP hereby assumes and
agrees to duly and timely pay, perform and discharge all of the Sun Delaware
Liabilities, to the full extent that Sun Delaware has been heretofore or would
have been in the future obligated to pay, perform and discharge the Sun Delaware
Liabilities were it not for the execution and delivery of this Agreement;
provided, however, that said assumption and agreement to duly and timely pay,
perform and discharge the Sun Delaware Liabilities shall not (i) increase the
obligation of Sunoco GP with respect to the Sun Delaware Liabilities beyond that
of Sun Delaware, (ii) waive any valid defense that was available to Sun Delaware
with respect to the Sun Delaware Liabilities or (iii) enlarge any rights or
remedies of any third party under any of the Sun Delaware Liabilities.

     3.12 Assumption of Sun Texas Aggregate Liabilities by Sunoco GP. In
          ----------------------------------------------------------
connection with the contributions by Sun Texas of the Sun Texas Aggregate
Interests to Sunoco GP, as set forth in Section 2.19 above, Sunoco GP hereby
assumes and agrees to duly and timely pay, perform and discharge all of the Sun
Texas Aggregate Liabilities, to the full extent that Sun Texas has been
heretofore or would have been in the future obligated to pay, perform and
discharge the Sun Texas Aggregate Liabilities were it not for the execution and
delivery of this Agreement; provided, however, that said assumption and
agreement to duly and timely pay, perform and discharge the Sun Texas Aggregate
Liabilities shall not (i) increase the obligation of Sunoco GP with respect to
the Sun Texas Aggregate Liabilities beyond that of Sun Texas, (ii) waive any
valid defense that was available to Sun Texas with respect to the Sun Texas
Aggregate Liabilities or (iii) enlarge any rights or remedies of any third party
under any of the Sun Texas Aggregate Liabilities.

     3.13 Assumption of R&M Aggregate Interests Liabilities by Sunoco GP. In
          --------------------------------------------------------------
connection with the contributions by R&M of the R&M Aggregate Interests to
Sunoco GP, as set forth in Section 2.20 above, Sunoco GP hereby assumes and
agrees to duly and timely pay, perform and discharge all of the R&M Aggregate
Interests Liabilities, to the full extent that R&M has been heretofore or would
have been in the future obligated to pay, perform and discharge the R&M
Aggregate Interests Liabilities were it not for the execution and delivery of
this Agreement; provided, however, that said assumption and agreement to duly
and timely pay, perform and discharge the R&M Aggregate Interests Liabilities
shall not (i) increase the obligation of Sunoco GP with respect to the R&M
Aggregate Interests Liabilities beyond that of R&M, (ii) waive any valid defense
that was available to R&M with respect to the R&M

                                       31

<PAGE>

Aggregate Interests Liabilities or (iii) enlarge any rights or remedies of any
third party under any of the R&M Aggregate Interests Liabilities.

     3.14 Assumption of Petroleum Aggregate Interests Liabilities by Sunoco GP.
          --------------------------------------------------------------------
In connection with the contributions by Petroleum of the Petroleum Aggregate
Interests to Sunoco GP, as set forth in Section 2.21 above, Sunoco GP hereby
assumes and agrees to duly and timely pay, perform and discharge all of the
Petroleum Aggregate Interests Liabilities, to the full extent that Petroleum has
been heretofore or would have been in the future obligated to pay, perform and
discharge the Petroleum Aggregate Interests Liabilities were it not for the
execution and delivery of this Agreement; provided, however, that said
assumption and agreement to duly and timely pay, perform and discharge the
Petroleum Aggregate Interests Liabilities shall not (i) increase the obligation
of Sunoco GP with respect to the Petroleum Aggregate Interests Liabilities
beyond that of Petroleum, (ii) waive any valid defense that was available to
Petroleum with respect to the Petroleum Aggregate Interests Liabilities or (iii)
enlarge any rights or remedies of any third party under any of the Petroleum
Aggregate Interests Liabilities.

     3.15 Assumption of Atlantic Refining Aggregate Liabilities by Sunoco GP. In
          ------------------------------------------------------------------
connection with the contributions by Atlantic Refining of the Atlantic Refining
Aggregate Interests to Sunoco GP, as set forth in Section 2.22 above, Sunoco GP
hereby assumes and agrees to duly and timely pay, perform and discharge all of
the Atlantic Refining Aggregate Liabilities, to the full extent that Atlantic
Refining has been heretofore or would have been in the future obligated to pay,
perform and discharge the Atlantic Refining Aggregate Liabilities were it not
for the execution and delivery of this Agreement; provided, however, that said
assumption and agreement to duly and timely pay, perform and discharge the
Atlantic Refining Aggregate Liabilities shall not (i) increase the obligation of
Sunoco GP with respect to the Atlantic Refining Aggregate Liabilities beyond
that of Atlantic Refining, (ii) waive any valid defense that was available to
Atlantic Refining with respect to the Atlantic Refining Aggregate Liabilities or
(iii) enlarge any rights or remedies of any third party under any of the
Atlantic Refining Aggregate Liabilities.

     3.16 Assumption of Sunoco GP Aggregate Liabilities by the MLP. In
          --------------------------------------------------------
connection with the contributions by Sunoco GP to the MLP of the Sunoco GP
Aggregate Interests as set forth in Section 2.23 above, the MLP hereby assumes
and agrees to duly and timely pay, perform and discharge all of the Sunoco GP
Aggregate Liabilities, to the full extent that Sunoco GP has been heretofore or
would have been in the future obligated to pay, perform and discharge such
obligations and liabilities were it not for the execution and delivery of this
Agreement; provided, however, that said assumption and agreement to duly and
timely pay, perform and discharge the Sunoco GP Aggregate Liabilities shall not
(i) increase the obligation of the MLP with respect to the Sunoco GP Aggregate
Liabilities beyond that of Sunoco GP, (ii) waive any valid defense that was
available to Sunoco GP with respect to the Sunoco GP Aggregate Liabilities or
(iii) enlarge any rights or remedies of any third party under any of the Sunoco
GP Aggregate Liabilities.

     3.17 Assumption of MLP Interest in Explorer Liabilities by Sun Pipeline LP.
          ---------------------------------------------------------------------
In connection with the contribution by the MLP to Sun Pipeline LP of the MLP
Interest in Explorer as set forth in Section 2.27 above, Sun Pipeline LP hereby
assumes and agrees to duly and timely pay, perform and discharge all of the MLP
Interest in Explorer Liabilities, to the full extent that the MLP has been
heretofore or would have been in the future obligated to pay, perform and

                                       32

<PAGE>

discharge the MLP Interest in Explorer Liabilities were it not for the execution
and delivery of this Agreement; provided, however, that said assumption and
agreement to duly and timely pay, perform and discharge the MLP Interest in
Explorer Liabilities and to be bound by all such agreements shall not (i)
increase the obligation of Sun Pipeline LP with respect to the MLP Interest in
Explorer Liabilities beyond that of the MLP, (ii) waive any valid defense that
was available to the MLP with respect to the MLP Interest in Explorer
Liabilities or (iii) enlarge any rights or remedies of any third party under any
of the MLP Interest in Explorer Liabilities.

     3.18 Assumption of MLP Aggregate Liabilities by the OLP. In connection with
          --------------------------------------------------
the contribution by the MLP to the OLP of the MLP Aggregate Interests as set
forth in Section 2.28 above, the OLP hereby assumes and agrees to duly and
timely pay, perform and discharge all of the MLP Aggregate Liabilities, to the
full extent that the MLP has been heretofore or would have been in the future
obligated to pay, perform and discharge the MLP Aggregate Liabilities were it
not for the execution and delivery of this Agreement; provided, however, that
said assumption and agreement to duly and timely pay, perform and discharge the
MLP Aggregate Liabilities and to be bound by all such agreements shall not (i)
increase the obligation of the OLP with respect to the MLP Aggregate Liabilities
beyond that of the MLP, (ii) waive any valid defense that was available to the
MLP with respect to the MLP Aggregate Liabilities or (iii) enlarge any rights or
remedies of any third party under any of the MLP Aggregate Liabilities.

     3.19 Assumption of GP LLC Aggregate Liabilities by OLP GP LLC. In
          --------------------------------------------------------
connection with the contribution by GP LLC to OLP GP LLC of the GP LLC Aggregate
Interests as set forth in Section 2.29 above, OLP GP LLC hereby assumes and
agrees to duly and timely pay, perform and discharge all of the GP LLC Aggregate
Liabilities, to the full extent that GP LLC has been heretofore or would have
been in the future obligated to pay, perform and discharge the GP LLC Aggregate
Liabilities were it not for the execution and delivery of this Agreement;
provided, however, that said assumption and agreement to duly and timely pay,
perform and discharge the GP LLC Aggregate Liabilities and to be bound by all
such agreements shall not (i) increase the obligation of OLP GP LLC with respect
to the GP LLC Aggregate Liabilities beyond that of GP LLC, (ii) waive any valid
defense that was available to GP LLC with respect to the GP LLC Aggregate
Liabilities or (iii) enlarge any rights or remedies of any third party under any
of the GP LLC Aggregate Liabilities.

     3.20 Assumption of GP LLC's Interest in OLP GP LLC Liabilities by the OLP.
          --------------------------------------------------------------------
In connection with the contribution by GP LLC to the OLP of GP LLC's Interest in
OLP GP LLC as set forth in Section 2.30 above, the OLP hereby assumes and agrees
to duly and timely pay, perform and discharge all of GP LLC's Interest in OLP GP
LLC Liabilities, to the full extent that GP LLC has been heretofore or would
have been in the future obligated to pay, perform and discharge GP LLC's
Interest in OLP GP LLC Liabilities were it not for the execution and delivery of
this Agreement; provided, however, that said assumption and agreement to duly
and timely pay, perform and discharge GP LLC's Interest in OLP GP LLC
Liabilities shall not (i) increase the obligation of the OLP with respect to GP
LLC's Interests in OLP GP LLC Liabilities beyond that of GP LLC, (ii) waive any
valid defense that was available to GP LLC with respect to GP LLC's Interest in
OLP GP LLC Liabilities or (iii) enlarge any rights or remedies of any third
party under any of GP LLC's Interest in OLP GP LLC Liabilities.

                                       33

<PAGE>

     3.21 Assumption of Sun Delaware Stock Liabilities by Sun Texas. In
          ---------------------------------------------------------
connection with the conveyance by Sun Delaware to Sun Texas of the Sun Delaware
Stock as set forth in Section 2.36 above, Sun Texas hereby assumes and agrees to
duly and timely pay, perform and discharge all of the Sun Delaware Stock
Liabilities, to the full extent that Sun Delaware has been heretofore or would
have been in the future obligated to pay, perform and discharge the Sun Delaware
Stock Liabilities were it not for the execution and delivery of this Agreement;
provided, however, that said assumption and agreement to duly and timely pay,
perform and discharge the Sun Delaware Stock Liabilities shall not (i) increase
the obligation of Sun Texas with respect to the Sun Delaware Stock Liabilities
beyond that of Sun Delaware, (ii) waive any valid defense that was available to
Sun Delaware with respect to the Sun Delaware Stock Liabilities or (iii) enlarge
any rights or remedies of any third party under any of the Sun Delaware Stock
Liabilities.

     3.22 Assumption of R&M In LP Additional Liabilities and Sun Pipeline LP
          ------------------------------------------------------------------
Additional Liabilities. In connection with the merger of Sun Pipeline LP and R&M
----------------------
In LP and the allocation of assets as set forth in Section 2.40 above, the
following shall be applicable:

          (a) R&M In LP hereby assumes and agrees to duly and timely pay,
perform and discharge all of the R&M In LP Additional Liabilities, to the full
extent that Sun Pipeline LP has been heretofore or would have been in the future
obligated to pay, perform and discharge the R&M In LP Additional Liabilities
were it not for such merger and the execution and delivery of this Agreement;
provided, however, that said assumption and agreement to duly and timely pay,
perform and discharge the R&M In LP Additional Liabilities shall not (i)
increase the obligation of R&M In LP with respect to the R&M In LP Additional
Liabilities beyond that of Sun Pipeline LP, (ii) waive any valid defense that
was available to Sun Pipeline LP with respect to the R&M In LP Additional
Liabilities or (iii) enlarge any rights or remedies of any third party under any
of the R&M In LP Additional Liabilities.

          (b) Sun Pipeline LP hereby assumes and agrees to duly and timely pay,
perform and discharge all of the Sun Pipeline LP Additional Liabilities, to the
full extent that Sun Pipeline LP has been heretofore or would have been in the
future obligated to pay, perform and discharge the Sun Pipeline LP Additional
Liabilities were it not for such merger and the execution and delivery of this
Agreement; provided, however, that said assumption and agreement to duly and
timely pay, perform and discharge the Sun Pipeline LP Additional Liabilities
shall not (i) increase the obligation of Sun Pipeline LP with respect to the Sun
Pipeline LP Additional Liabilities beyond that of Sun Pipeline LP before such
merger, (ii) waive any valid defense that was available to Sun Pipeline LP with
respect to the Sun Pipeline LP Additional Liabilities or (iii) enlarge any
rights or remedies of any third party under any of the Sun Pipeline LP
Additional Liabilities.

     3.23 Assumption of R&M In LP Non-Conrail Easement and Non-Intellectual
          -----------------------------------------------------------------
Property Liabilities and Sun Pipeline LP Conrail Easement and Intellectual
--------------------------------------------------------------------------
Property Liabilities. In connection with the merger of Sun Pipeline LP and R&M
--------------------
In LP and the allocation of assets as set forth in Section 2.40 above, the
following shall be applicable:

          (a) Sun Pipeline LP hereby assumes and agrees to duly and timely pay,
perform and discharge all of the Sun Pipeline LP Conrail Easement and
Intellectual Property

                                       34

<PAGE>

Liabilities, to the full extent that R&M In LP has been heretofore or would have
been in the future obligated to pay, perform and discharge the Sun Pipeline LP
Conrail Easement and Intellectual Property Liabilities were it not for such
merger and the execution and delivery of this Agreement; provided, however, that
said assumption and agreement to duly and timely pay, perform and discharge the
Sun Pipeline LP Conrail Easement and Intellectual Property Liabilities shall not
(i) increase the obligation of Sun Pipeline LP with respect to the Sun Pipeline
LP Conrail Easement and Intellectual Property Liabilities beyond that of R&M In
LP, (ii) waive any valid defense that was available to R&M In LP with respect to
the Sun Pipeline LP Conrail Easement and Intellectual Property Liabilities or
(iii) enlarge any rights or remedies of any third party under any of the Sun
Pipeline LP Conrail Easement and Intellectual Property Liabilities.

          (b) R&M In LP hereby assumes and agrees to duly and timely pay,
perform and discharge all of the R&M In LP Non-Conrail Easement and
Non-Intellectual Property Liabilities, to the full extent that R&M In LP has
been heretofore or would have been in the future obligated to pay, perform and
discharge the R&M In LP Non-Conrail Easement and Non-Intellectual Property
Liabilities were it not for such merger and the execution and delivery of this
Agreement; provided, however, that said assumption and agreement to duly and
timely pay, perform and discharge the R&M In LP Non-Conrail Easement and
Non-Intellectual Property Liabilities shall not (i) increase the obligation of
R&M In LP with respect to the R&M In LP Non-Conrail Easement and
Non-Intellectual Property Liabilities beyond that of R&M In LP before such
merger, (ii) waive any valid defense that was available to R&M In LP with
respect to the R&M In LP Non-Conrail Easement and Non-Intellectual Property
Liabilities or (iii) enlarge any rights or remedies of any third party under any
of the R&M In LP Non-Conrail Easement and Non-Intellectual Property Liabilities.

     3.24 General Provisions Relating to Assumption of Liabilities.
          --------------------------------------------------------
Notwithstanding anything to the contrary contained in this Agreement including,
without limitation, the terms and provisions of this Article III, none of the
parties to this Agreement shall be deemed to have assumed, and none of the
Assets have been or are being contributed subject to, (i) any liens or security
interests securing consensual indebtedness covering any of the Assets, except to
the extent set forth on a schedule to this Agreement, and all such liens and
security interests shall be deemed to be excluded from the assumptions of
liabilities made under this Article III or (ii) any of the liabilities covered
by the indemnities set forth in the Omnibus Agreement to the extent such
liabilities are covered by such indemnities, and all such liabilities shall be
deemed to be excluded from the assumptions of liabilities made under this
Article III to the extent that such liabilities are covered by such indemnities.

                                   ARTICLE IV
                                 Indemnification

     4.1  Indemnification Relating to Excessive Tariff Rate.
          -------------------------------------------------

          (a) Sunoco GP shall indemnify, defend and hold harmless the MLP, its
partners, its Affiliates and their respective members, directors, officers,
employees and their respective successors and assigns from and against any and
all claims, demands, costs, liabilities and expenses (including court costs and
reasonable attorneys' fees), arising from or relating to a decision by the FERC
that any tariff rate published by the MLP or any of its Affiliates

                                       35

<PAGE>

(including, without limitation, Pipeline LP) is not just and reasonable,
provided that the tariff rate found to be just and reasonable by the FERC is
less than (except for increases permitted under the FERC's indexed rate
methodology) the applicable tariff rate published by Sunoco or its applicable
Affiliates in effect at the Effective Time and which relates to the same
movement of crude oil or refined products. Notwithstanding the foregoing, the
total amounts required to be paid by Sunoco GP under this Section 4.1 shall not
exceed the difference between (i) the amount that the MLP and any of its
Affiliates may lawfully collect from Sunoco or any of its Affiliates pursuant to
any such decision of the FERC and (ii) the amount that, absent such a decision,
would have been collected from Sunoco or any of its Affiliates at the applicable
tariff rate published by Sunoco or its applicable Affiliates in effect at the
Effective Time (except for increases permitted under the FERC's indexed rate
methodology). In the event that Sunoco GP is required to make any payments under
this Section 4.1, such payment shall be made to the MLP or the applicable
Affiliate promptly after Sunoco GP has been notified by the MLP of such
determination by FERC.

          (b) The obligation of Sunoco GP to make the payments required to be
made under the terms of Section 4.1(a) is guaranteed by Sunoco in the Omnibus
Agreement.

                                    ARTICLE V
                                  Title Matters

     5.1  Encumbrances.
          ------------

          (a) Except to the extent provided in Section 3.24 or any other
document executed in connection with this Agreement or the Offering including,
without limitation, the Omnibus Agreement, the contribution and conveyance (by
operation of law or otherwise) of the various physical assets as reflected in
this Agreement (collectively, the "Assets") are made expressly subject to all
recorded encumbrances, agreements, defects, restrictions, and adverse claims
covering the respective Assets (other than liens not shown on any of the
schedules to this Agreement) and all laws, rules, regulations, ordinances,
judgments and orders of governmental authorities or tribunals having or
asserting jurisdiction over the Assets and operations conducted thereon or
therewith, in each case to the extent the same are valid and enforceable and
affect the Assets, including, without limitation, (a) all matters that a current
on the ground survey, title insurance commitment or policy, or visual inspection
of the Assets would reflect, (b) the applicable liabilities assumed in Article
III, and (c) all matters contained in the Specific Conveyances.

          (b) To the extent that certain jurisdictions in which the Assets are
located may require that documents be recorded in order to evidence the
transfers of title reflected in this Agreement, then the provisions set forth in
Section 5.1(a) immediately above shall also be applicable to the conveyances
under such documents.

     5.2  Disclaimer of Warranties; Subrogation; Waiver of Bulk Sales Laws.
          ----------------------------------------------------------------

          (a) EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR
DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT
LIMITATION THE OMNIBUS

                                       36

<PAGE>

AGREEMENT, THE PARTIES TO THIS AGREEMENT ACKNOWLEDGE AND AGREE THAT NONE OF THE
PARTIES TO THIS AGREEMENT HAS MADE, DOES NOT MAKE, AND EACH SUCH PARTY
SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS, WARRANTIES, PROMISES,
COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER
EXPRESS, IMPLIED OR STATUTORY, ORAL OR WRITTEN, PAST OR PRESENT, REGARDING (A)
THE VALUE, NATURE, QUALITY OR CONDITION OF THE ASSETS INCLUDING, WITHOUT
LIMITATION, THE WATER, SOIL, GEOLOGY OR ENVIRONMENTAL CONDITION OF THE ASSETS
GENERALLY, INCLUDING THE PRESENCE OR LACK OF HAZARDOUS SUBSTANCES OR OTHER
MATTERS ON THE ASSETS, (B) THE INCOME TO BE DERIVED FROM THE ASSETS, (C) THE
SUITABILITY OF THE ASSETS FOR ANY AND ALL ACTIVITIES AND USES THAT MAY BE
CONDUCTED THEREON, (D) THE COMPLIANCE OF OR BY THE ASSETS OR THEIR OPERATION
WITH ANY LAWS (INCLUDING WITHOUT LIMITATION ANY ZONING, ENVIRONMENTAL
PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR
REQUIREMENTS), OR (E) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY,
PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE ASSETS. EXCEPT TO THE
EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH
THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION, THE OMNIBUS
AGREEMENT, THE PARTIES TO THIS AGREEMENT ACKNOWLEDGE AND AGREE THAT EACH HAS HAD
THE OPPORTUNITY TO INSPECT THE RESPECTIVE ASSETS, AND EACH IS RELYING SOLELY ON
ITS OWN INVESTIGATION OF THE RESPECTIVE ASSETS AND NOT ON ANY INFORMATION
PROVIDED OR TO BE PROVIDED BY ANY OF THE PARTIES TO THIS AGREEMENT. EXCEPT TO
THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION
WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION, THE OMNIBUS
AGREEMENT, NONE OF THE PARTIES TO THIS AGREEMENT IS LIABLE OR BOUND IN ANY
MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION
PERTAINING TO THE ASSETS FURNISHED BY ANY AGENT, EMPLOYEE, SERVANT OR THIRD
PARTY. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED
IN CONNECTION WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION,
THE OMNIBUS AGREEMENT, EACH OF THE PARTIES TO THIS AGREEMENT ACKNOWLEDGE THAT TO
THE MAXIMUM EXTENT PERMITTED BY LAW, THE CONTRIBUTION OF THE ASSETS AS PROVIDED
FOR HEREIN IS MADE IN AN "AS IS", "WHERE IS" CONDITION WITH ALL FAULTS, AND THE
ASSETS ARE CONTRIBUTED AND CONVEYED SUBJECT TO ALL OF THE MATTERS CONTAINED IN
THIS SECTION. THIS SECTION SHALL SURVIVE SUCH CONTRIBUTION AND CONVEYANCE OR THE
TERMINATION OF THIS AGREEMENT. THE PROVISIONS OF THIS SECTION HAVE BEEN
NEGOTIATED BY THE PARTIES TO THIS AGREEMENT AFTER DUE CONSIDERATION AND ARE
INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION OF ANY REPRESENTATIONS OR
WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT TO THE ASSETS
THAT MAY ARISE PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT, OR OTHERWISE,
EXCEPT AS SET FORTH IN THIS AGREEMENT OR ANY OTHER

                                       37

<PAGE>

DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE
OFFERING, INCLUDING, WITHOUT LIMITATION, THE OMNIBUS AGREEMENT.

          (b) To the extent that certain jurisdictions in which the Assets are
located may require that documents be recorded in order to evidence the
transfers of title reflected in this Agreement, then the disclaimers set forth
in Section 5.2(a) immediately above shall also be applicable to the conveyances
under such documents.

          (c) The contributions of the Assets made under this Agreement are made
with full rights of substitution and subrogation of the respective parties
receiving such contributions, and all persons claiming by, through and under
such parties, to the extent assignable, in and to all covenants and warranties
by the predecessors-in-title of the parties contributing the Assets, and with
full subrogation of all rights accruing under applicable statutes of limitation
and all rights of action of warranty against all former owners of the Assets.

          (d) Each of the parties to this Agreement agrees that the disclaimers
contained in this Section 5.2 are "conspicuous" disclaimers. Any covenants
implied by statute or law by the use of the words "grant," "convey," "bargain,"
"sell," "assign," "transfer," "deliver," or "set over" or any of them or any
other words used in this Agreement or any exhibits hereto are hereby expressly
disclaimed, waived or negated.

          Each of the parties to this Agreement hereby waives compliance with
any applicable bulk sales law or any similar law in any applicable jurisdiction
in respect of the transactions contemplated by this Agreement.

     5.3 Reservation of Right of Use and Access. (a) Various real property
         --------------------------------------
assets have been conveyed by operation of law or otherwise as reflected in this
Agreement (collectively, the "Real Property"). In connection therewith (i)
                              -------------
certain fixtures, equipment and other personal property which are listed on the
applicable schedules to this Agreement, and (ii) any other fixtures, equipment
and other personal property located on the Real Property which are necessary for
the operation of the property listed in clause (i) of this sentence (the
property described in clauses (i) and (ii) of this sentence being called the
"Conveyed Assets") have been conveyed and transferred by operation of law or
----------------
otherwise to the applicable entity, as set forth in this Agreement. Each of the
parties owning any portion of the Real Property immediately prior to the
applicable transfer (by operation of law or otherwise) under this Agreement
intended to and has pursuant to this Agreement reserved unto itself and its
successors and assigns, respectively, any fixtures, equipment, and other
personal property owned by such parties immediately prior to the Effective Time
and located on the Real Property, except for the Conveyed Assets (the "Reserved
                                                                       --------
Assets").
------

          (b) All parties to this Agreement acknowledge and agree that the
applicable owners of the Reserved Assets will require reasonable access to the
Reserved Assets in connection with the operation, maintenance, repair, removal
and replacement of the Reserved Assets, and in order to facilitate such access,
each of the applicable owners of the Reserved Assets intended to reserve and
has, by the execution of this Agreement, reserved unto itself, for itself and
its respective successors and assigns, the right to reasonable access to the
Reserved

                                       38

<PAGE>

Assets over, across and under the Real Property for the operation, maintenance,
repair, removal and replacement of the Reserved Assets provided that such access
does not unreasonably interfere with the use of the Conveyed Assets by the
applicable owner thereof.

          (c) The parties to this Agreement further acknowledge and agree that
in order to give proper notice to third parties or to comply with applicable
law, it may be necessary to record certain documents in order to evidence the
rights of the applicable owners of the Reserved Assets, and the parties to this
Agreement agree to execute and cause to be recorded all such documents as may be
required.

                                   ARTICLE VI
                               Further Assurances

     6.1 Further Assurances. From time to time after the date hereof, and
         ------------------
without any further consideration, the parties to this Agreement agree to
execute, acknowledge and deliver all such additional deeds, assignments, bills
of sale, conveyances, instruments, notices, releases, acquittances and other
documents, and will do all such other acts and things, all in accordance with
applicable law, as may be necessary or appropriate (i) more fully to assure that
the applicable parties to this Agreement own all of the properties, rights,
titles, interests, estates, remedies, powers and privileges granted by this
Agreement, or which are intended to be so granted (ii) more fully and
effectively to vest in the applicable parties to this Agreement and their
respective successors and assigns beneficial and record title to the interests
contributed and assigned by this Agreement or intended so to be and to more
fully and effectively carry out the purposes and intent of this Agreement.

     6.2 Other Assurances. From time to time after the date hereof, and without
         ----------------
any further consideration, each of the parties to this Agreement shall execute,
acknowledge and deliver all such additional instruments, notices and other
documents, and will do all such other acts and things, all in accordance with
applicable law, as may be necessary or appropriate to more fully and effectively
carry out the purposes and intent of this Agreement. Without limiting the
generality of the foregoing, the parties to this Agreement acknowledge that the
parties have used their good faith efforts to attempt to identify all of the
assets being contributed to the MLP or its subsidiaries as required in
connection with the Offering. However, due to the age of some of those assets
and the difficulties in locating appropriate data with respect to some of the
assets it is possible that assets intended to be contributed to the MLP or its
subsidiaries were not identified and therefore are not included in the assets
contributed to the MLP or its subsidiaries. It is the express intent of the
parties to this Agreement that the MLP or its subsidiaries own all assets
necessary to operate the assets that are identified in this Agreement and in the
Registration Statement. To the extent any assets were not identified but are
necessary to the operation of assets that were identified, then the intent of
the parties to this Agreement is that all such unidentified assets are intended
to be conveyed to the appropriate members of the Partnership Group. To the
extent such assets are identified at a later date, the parties to this Agreement
shall take the appropriate actions required in order to convey all such assets
to the appropriate members of the Partnership Group. Likewise, to the extent
that assets are identified at a later date that were not intended by the parties
to be conveyed as reflected in the Registration Statement, the parties to this
Agreement shall take the appropriate actions required in order to convey all
such assets to the appropriate party.

                                       39

<PAGE>

                                  ARTICLE VII
                               Powers of Attorney

     7.1 Services LP. Services LP hereby constitutes and appoints Services Out
         -----------
LLC and its successors and assigns, its true and lawful attorney-in-fact with
full power of substitution for it and in its name, place and stead or otherwise
on behalf of Services LP and its successors and assigns, and for the benefit of
Services Out LLC and its successors and assigns, to demand and receive from time
to time the Services Out LLC Assets and to execute in the name of Services LP
and its successors and assigns, instruments of conveyance, instruments of
further assurance and to give receipts and releases in respect of the same, and
from time to time to institute and prosecute in the name of Services LP for the
benefit of Services Out LLC as may be appropriate, any and all proceedings at
law, in equity or otherwise which Services Out LLC and its successors and
assigns, may deem proper in order (i) to collect, assert or enforce any claims,
rights or titles of any kind in and to the Services Out LLC Assets, (ii) to
defend and compromise any and all actions, suits or proceedings in respect of
any of the Services Out LLC Assets, and (iii) to do any and all such acts and
things in furtherance of this Agreement as Services Out LLC or its successors or
assigns shall deem advisable. Services LP hereby declares that the appointments
hereby made and the powers hereby granted are coupled with an interest and are
and shall be irrevocable and perpetual and shall not be terminated by any act of
Services LP or its successors or assigns or by operation of law.

     7.2 R&M. R&M hereby constitutes and appoints R&M In LP and its successors
         ---
and assigns, its true and lawful attorney-in-fact with full power of
substitution for it and in its name, place and stead or otherwise on behalf of
R&M and its successors and assigns, and for the benefit of R&M In LP and its
successors and assigns, to demand and receive from time to time the R&M In LP
Assets and to execute in the name of R&M and its successors and assigns
instruments of conveyance, instruments of further assurance and to give receipts
and releases in respect of the same, and from time to time to institute and
prosecute in the name of R&M for the benefit of R&M In LP as may be appropriate,
any and all proceedings at law, in equity or otherwise which R&M In LP and its
successors and assigns, may deem proper in order (i) to collect, assert or
enforce any claims, rights or titles of any kind in and to the R&M In LP Assets,
(ii) to defend and compromise any and all actions, suits or proceedings in
respect of any of the R&M In LP Assets, and (iii) to do any and all such acts
and things in furtherance of this Agreement as R&M In LP or its successors or
assigns shall deem advisable. R&M hereby declares that the appointments hereby
made and the powers hereby granted are coupled with an interest and are and
shall be irrevocable and perpetual and shall not be terminated by any act of R&M
or its successors or assigns or by operation of law.

     7.3 Atlantic Refining. Atlantic Refining hereby constitutes and appoints
         -----------------
Atlantic R&M In LP and its successors and assigns, its true and lawful
attorney-in-fact with full power of substitution for it and in its name, place
and stead or otherwise on behalf of Atlantic Refining and its successors and
assigns, and for the benefit of Atlantic R&M In LP and its successors and
assigns, to demand and receive from time to time the Atlantic R&M In LP Assets
and to execute in the name of Atlantic Refining and its successors and assigns
instruments of conveyance, instruments of further assurance and to give receipts
and releases in respect of the same, and from time to time to institute and
prosecute in the name of Atlantic Refining for the benefit of Atlantic R&M In LP
as may be appropriate, any and all proceedings at law, in equity or

                                       40

<PAGE>

otherwise which Atlantic R&M In LP and its successors and assigns, may deem
proper in order to (i) collect, assert or enforce any claims, rights or titles
of any kind in and to the Atlantic R&M In LP Assets, (ii) defend and compromise
any and all actions, suits or proceedings in respect of any of the Atlantic R&M
In LP Assets, and (iii) do any and all such acts and things in furtherance of
this Agreement as Atlantic R&M In LP or its successors or assigns shall deem
advisable. Atlantic Refining hereby declares that the appointments hereby made
and the powers hereby granted are coupled with an interest and are and shall be
irrevocable and perpetual and shall not be terminated by any act of Atlantic
Refining or its successors or assigns or by operation of law.

     7.4 Contributing Parties. In addition to the specific powers of attorney
         --------------------
granted in the other sections of this Article VII, each of the Contributing
Parties that have contributed the Assets as reflected by this Agreement hereby
constitutes and appoints the party to whom the respective Assets were
contributed and its successors and assigns (the "Receiving Party"), its true and
                                                 ---------------
lawful attorney-in-fact with full power of substitution for it and in its name,
place and stead or otherwise on behalf of the applicable Contributing Party and
its successors and assigns, and for the benefit of the applicable Receiving
Party and its successors and assigns, to demand and receive from time to time
the applicable Assets contributed and to execute in the name of the applicable
Contributing Party and its successors and assigns instruments of conveyance,
instruments of further assurance and to give receipts and releases in respect of
the same, and from time to time to institute and prosecute in the name of the
applicable Contributing Party for the benefit of the applicable Receiving Party
as may be appropriate, any and all proceedings at law, in equity or otherwise
which the applicable Receiving Party and its successors and assigns, may deem
proper in order to (i) collect, assert or enforce any claims, rights or titles
of any kind in and to the applicable Assets, (ii) defend and compromise any and
all actions, suits or proceedings in respect of any of the applicable Assets,
and (iii) do any and all such acts and things in furtherance of this Agreement
as the applicable Receiving Party or its successors or assigns shall deem
advisable. Each Contributing Party hereby declares that the appointments hereby
made and the powers hereby granted are coupled with an interest and are and
shall be irrevocable and perpetual and shall not be terminated by any act of any
Contributing Party or its successors or assigns or by operation of law.

                                  ARTICLE VIII
                                  Miscellaneous

     8.1 Order of Completion of Transactions. The transactions provided for in
         -----------------------------------
Articles II (except as otherwise noted) and III of this Agreement shall be
completed on the Effective Date in the following order:

          First, the transactions provided for in Article II shall be completed
          -----
in the order set forth therein; and

          Second, the transactions provided for in Article III shall be
          ------
completed in the order set forth therein.

     8.2 Consents; Restriction on Assignment. If there are prohibitions against
         -----------------------------------
or conditions to the contribution and conveyance of one or more of the Assets
without the prior

                                       41

<PAGE>

written consent of third parties, including, without limitation, governmental
agencies (other than consents of a ministerial nature which are normally granted
in the ordinary course of business), which if not satisfied would result in a
breach of such prohibitions or conditions or would give an outside party the
right to terminate rights of the party to whom the applicable Assets were
intended to be conveyed (the "Beneficial Owner") with respect to such portion of
                              ----------------
the Assets (herein called a "Restriction"), then any provision contained in this
                             -----------
Agreement to the contrary notwithstanding, the transfer of title to or interest
in each such portion of the Assets (herein called the "Restriction Asset")
                                                       -----------------
pursuant to this Agreement shall not become effective unless and until such
Restriction is satisfied, waived or no longer applies. When and if such a
Restriction is so satisfied, waived or no longer applies, to the extent
permitted by applicable law and any applicable contractual provisions, the
assignment of the Restriction Asset subject thereto shall become effective
automatically as of the Effective Time, without further action on the part of
any party to this Agreement. Each of the applicable parties to this Agreement
that were involved with the conveyance of a Restriction Asset agree to use their
reasonable best efforts to obtain on a timely basis satisfaction of any
Restriction applicable to any Restriction Asset conveyed by or acquired by any
of them. The description of any portion of the Assets as a "Restriction Asset"
shall not be construed as an admission that any Restriction exists with respect
to the transfer of such portion of the Assets. In the event that any Restriction
Asset exists, the applicable party agrees to continue to hold such Restriction
Asset in trust for the exclusive benefit of the applicable party to whom such
Restriction Asset was intended to be conveyed and to otherwise use its
reasonable best efforts to provide such other party with the benefits thereof,
and the party holding such Restriction Asset will enter into other agreements,
or take such other action as it may deem necessary, in order to ensure that the
applicable party to whom such Restriction Asset was intended to be conveyed has
the assets and concomitant rights necessary to enable the applicable party to
operate such Restriction Asset in all material respects as it was operated prior
to the Effective Time.

     8.3 Costs. The OLP shall pay all sales, use and similar taxes arising out
         -----
of the contributions, conveyances and deliveries to be made hereunder, and shall
pay all documentary, filing, recording, transfer, deed, and conveyance taxes and
fees required in connection therewith. In addition, the OLP shall be responsible
for all costs, liabilities and expenses (including court costs and reasonable
attorneys' fees) incurred in connection with the satisfaction or waiver of any
Restriction pursuant to Section 8.2.

     8.4 Headings; References; Interpretation. All Article and Section headings
         ------------------------------------
in this Agreement are for convenience only and shall not be deemed to control or
affect the meaning or construction of any of the provisions hereof. The words
"hereof," "herein" and "hereunder" and words of similar import, when used in
this Agreement, shall refer to this Agreement as a whole, including without
limitation, all Schedules attached hereto, and not to any particular provision
of this Agreement. All references herein to Articles, Sections, and Schedules
shall, unless the context requires a different construction, be deemed to be
references to the Articles, Sections and Schedules of this Agreement,
respectively, and all such Schedules attached hereto are hereby incorporated
herein and made a part hereof for all purposes. All personal pronouns used in
this Agreement, whether used in the masculine, feminine or neuter gender, shall
include all other genders, and the singular shall include the plural and vice
versa. The use herein of the word "including" following any general statement,
term or matter shall not be construed to limit such statement, term or matter to
the specific items or matters set forth immediately following such

                                       42

<PAGE>

word or to similar items or matters, whether or not non-limiting language (such
as "without limitation," "but not limited to," or words of similar import) is
used with reference thereto, but rather shall be deemed to refer to all other
items or matters that could reasonably fall within the broadest possible scope
of such general statement, term or matter.

     8.5 Successors and Assigns. The Agreement shall be binding upon and inure
         ----------------------
to the benefit of the parties signatory hereto and their respective successors
and assigns.

     8.6 No Third Party Rights. The provisions of this Agreement are intended to
         ---------------------
bind the parties signatory hereto as to each other and are not intended to and
do not create rights in any other person or confer upon any other person any
benefits, rights or remedies and no person is or is intended to be a third party
beneficiary of any of the provisions of this Agreement.

     8.7 Counterparts. This Agreement may be executed in any number of
         ------------
counterparts, all of which together shall constitute one agreement binding on
the parties hereto.

     8.8 Governing Law. This Agreement shall be governed by, and construed in
         -------------
accordance with, the laws of the State of Pennsylvania applicable to contracts
made and to be performed wholly within such state without giving effect to
conflict of law principles thereof, except to the extent that it is mandatory
that the law of some other jurisdiction, wherein the Assets are located, shall
apply.

     8.9 Severability. If any of the provisions of this Agreement are held by
         ------------
any court of competent jurisdiction to contravene, or to be invalid under, the
laws of any political body having jurisdiction over the subject matter hereof,
such contravention or invalidity shall not invalidate the entire Agreement.
Instead, this Agreement shall be construed as if it did not contain the
particular provision or provisions held to be invalid, and an equitable
adjustment shall be made and necessary provision added so as to give effect to
the intention of the parties as expressed in this Agreement at the time of
execution of this Agreement.

     8.10 Deed; Bill of Sale; Assignment. To the extent required and permitted
          ------------------------------
by applicable law, this Agreement shall also constitute a "deed," "bill of sale"
or "assignment" of the Assets.

     8.11 Amendment or Modification. This Agreement may be amended or modified
          -------------------------
from time to time only by the written agreement of all the parties hereto and
affected thereby.

     8.12 Integration. This Agreement and the instruments referenced herein
          -----------
supersede all previous understandings or agreements between the parties, whether
oral or written, with respect to its subject matter. This Agreement and such
instruments contain the entire understanding of the parties with respect to the
subject matter hereof and thereof. No understanding, representation, promise or
agreement, whether oral or written, is intended to be or shall be included in or
form part of this Agreement unless it is contained in a written amendment hereto
executed by the parties hereto after the date of this Agreement.

                                       43

<PAGE>

         IN WITNESS WHEREOF, this Agreement has been duly executed by the
parties hereto as of the date first above written.

                       SUNOCO, INC., a Pennsylvania corporation

                       By: /s/ Thomas W. Hofmann
                          ------------------------------------------------------
                       Name: Thomas W. Hofmann
                            ----------------------------------------------------
                       Title: Senior Vice President and Chief Financial Officer
                             ---------------------------------------------------
                                          "Sunoco"

                       SUN PIPE LINE COMPANY OF DELAWARE, a Delaware
                       corporation

                       By: /s/ David A. Justin
                          ------------------------------------------------------
                       Name: David A. Justin
                            ----------------------------------------------------
                       Title: President
                             ---------------------------------------------------
                                          "Sun Delaware"

                       SUNOCO, INC. (R&M), a Pennsylvania corporation

                       By: /s/ Thomas W. Hofmann
                          ------------------------------------------------------
                       Name: Thomas W. Hofmann
                            ----------------------------------------------------
                       Title: Senior Vice President and Chief Financial Officer
                             ---------------------------------------------------
                                          "R&M"

                       ATLANTIC PETROLEUM CORPORATION, a Delaware corporation,a
                       Delaware corporation

                       By: /s/ Barry H. Rosenberg
                          ------------------------------------------------------
                       Name: Barry H. Rosenberg
                            ----------------------------------------------------
                       Title: President
                             ---------------------------------------------------
                                          "Petroleum"

                          Signature Page 1 of 7 to the
                Contribution, Conveyance and Assumption Agreement

<PAGE>

                       SUNOCO TEXAS PIPE LINE COMPANY, a Texas corporation

                       By: /s/ David A. Justin
                          ------------------------------------------------------
                       Name: David A. Justin
                            ----------------------------------------------------
                       Title: Vice President
                             ---------------------------------------------------
                                          "Sun Texas"

                       SUN  OIL  LINE  OF  MICHIGAN   (OUT)  LLC,  a
                       Texas   limited liability company

                       By: /s/ David A. Justin
                          ------------------------------------------------------
                       Name: David A. Justin
                            ----------------------------------------------------
                       Title: Vice President
                             ---------------------------------------------------
                                          "Michigan Texas"

                       MID-CONTINENT  PIPE LINE (OUT) LLC, a
                       Texas limited  liability company

                       By: /s/ Deborah M. Fretz
                          ------------------------------------------------------
                       Name: Deborah M. Fretz
                            ----------------------------------------------------
                       Title: President
                             ---------------------------------------------------
                                          "Mid-Con Texas"

                       SUN  PIPE  LINE  SERVICES   (OUT)  LLC,
                       a Delaware   limited liability company

                       By: /s/ Deborah M. Fretz
                          ------------------------------------------------------
                       Name: Deborah M. Fretz
                            ----------------------------------------------------
                       Title: President
                             ---------------------------------------------------
                                          "Services Out LLC"

                       ATLANTIC PETROLEUM DELAWARE CORPORATION,
                       a Delaware corporation

                       By: /s/ David A. Justin
                          ------------------------------------------------------
                       Name: David A. Justin
                            ----------------------------------------------------
                       Title: Vice President
                             ---------------------------------------------------
                                          "Delaware"

                          Signature Page 2 of 7 to the
                Contribution, Conveyance and Assumption Agreement

<PAGE>

                       ATLANTIC PIPELINE (OUT) L.P., a Texas limited partnership

                       By:  Atlantic Petroleum Corporation, a Delaware
                            corporation,as general partner

                            By:/s/ Barry H. Rosenberg
                               -------------------------------------------------
                            Name: Barry H. Rosenberg
                                 -----------------------------------------------
                            Title: President
                                  ----------------------------------------------
                                          "Atlantic Out LP"

                       SUNOCO PARTNERS LLC, a Pennsylvania
                       limited liability company

                       By: /s/ David A. Justin
                           -----------------------------------------------------
                       Name: David A. Justin
                             ---------------------------------------------------
                       Title: Vice President
                              --------------------------------------------------
                                          "Sunoco GP"

                       SUNOCO PARTNERS LEASE ACQUISITION & MARKETING LLC, a
                       Delaware limited liability company

                       By: /s/ Deborah M. Fretz
                           -----------------------------------------------------
                       Name: Deborah M. Fretz
                             ---------------------------------------------------
                       Title: President
                              --------------------------------------------------
                                          "LA LLC"

                       SUNOCO LOGISTICS PARTNERS L.P., a Delaware limited
                       partnership

                       By:  Sunoco Partners LLC, a Pennsylvania limited
                            liability company, as general partner

                            By: /s/ David A. Justin
                               -------------------------------------------------
                            Name: David A. Justin
                                 -----------------------------------------------
                            Title: Vice President
                                  ----------------------------------------------
                                          "MLP"

                          Signature Page 3 of 7 to the
                Contribution, Conveyance and Assumption Agreement

<PAGE>

                       SUNOCO LOGISTICS PARTNERS GP LLC, a Delaware limited
                       liability company

                       By: /s/ David A. Justin
                           -----------------------------------------------------
                       Name:  David A. Justin
                             ---------------------------------------------------
                       Title: Vice President
                              --------------------------------------------------
                                          "GP LLC"

                       SUNOCO LOGISTICS PARTNERS OPERATIONS L.P., a Delaware
                       limited partnership

                       By:  Sunoco Logistics Partners GP LLC, a Delaware
                            limited liability company, as general partner

                            By: /s/ David A. Justin
                               -------------------------------------------------
                            Name:  David A. Justin
                                 -----------------------------------------------
                            Title: Vice President
                                  ----------------------------------------------
                                          "OLP"

                       SUNOCO LOGISTICS PARTNERS OPERATIONS GP LLC, a Delaware
                       limited liability company

                       By: /s/ David A. Justin
                           -----------------------------------------------------
                       Name: David A. Justin
                             ---------------------------------------------------
                       Title: Vice President
                              --------------------------------------------------
                                          "OLP GP LLC"

                       SUNOCO PIPELINE L.P., a Texas limited partnership

                       By:  Sun Pipe Line GP LLC, a Delaware limited liability
                            company, as general partner

                            By: /s/ James L. Fidler
                               -------------------------------------------------
                            Name: James L. Fidler
                                 -----------------------------------------------
                            Title: President
                                  ----------------------------------------------
                                          "Sun Pipeline LP"

                          Signature Page 4 of 7 to the
                Contribution, Conveyance and Assumption Agreement

<PAGE>

                       SUNOCO PARTNERS MARKETING & TERMINALS L.P., a Texas
                       limited partnership

                       By:  Sunoco R&M (In) LLC, a Delaware limited liability
                            company, as general partner

                            By: /s/ James L. Fidler
                               -------------------------------------------------
                            Name: James L. Fidler
                                 -----------------------------------------------
                            Title: President
                                  ----------------------------------------------
                                          "R&M In LP"

                       SUNOCO MID-CON (IN) LLC, a Texas limited liability
                       company

                       By:  /s/ James L. Fidler
                            ----------------------------------------------------
                       Name:  James L. Fidler
                              --------------------------------------------------
                       Title: President
                              --------------------------------------------------
                                          "Mid-Con In LLC"

                       ATLANTIC (IN) L.P., a Texas limited partnership

                       By:  Atlantic (In) LLC, a Delaware limited liability
                            company, as general partner

                            By: /s/ James L. Fidler
                               -------------------------------------------------
                            Name: James L. Fidler
                                 -----------------------------------------------
                            Title: President
                                  ----------------------------------------------
                                          "Atlantic In LP"

                       ATLANTIC R&M (IN) L.P., a Texas limited partnership

                       By:  Atlantic (In) LLC, a Delaware limited liability
                            company, as general partner

                            By: /s/ James L. Fidler
                               -------------------------------------------------
                            Name: James L. Fidler
                                 -----------------------------------------------
                            Title: President
                                  ----------------------------------------------
                                          "Atlantic R&M In LP"

                          Signature Page 5 of 7 to the
                Contribution, Conveyance and Assumption Agreement

<PAGE>

                       SUN PIPE LINE SERVICES (IN) L.P., a Delaware limited
                       partnership

                       By:  Sunoco Logistics Partners GP LLC, a Delaware limited
                            liability company, as general partner

                            By: /s/ David A. Justin
                               -------------------------------------------------
                            Name: David A. Justin
                                 -----------------------------------------------
                            Title: Vice President
                                  ----------------------------------------------
                                          "Services LP"

                       SUNOCO MICHIGAN (IN) LLC, a Texas limited liability
                       company

                       By:  /s/ James L. Fidler
                            ----------------------------------------------------
                       Name: James L. Fidler
                            ----------------------------------------------------
                       Title: President
                            ----------------------------------------------------
                                          "Michigan In LLC"

                       ATLANTIC (IN) LLC, a Delaware limited liability company

                       By:  /s/ James L. Fidler
                            ----------------------------------------------------
                       Name: James L. Fidler
                             ---------------------------------------------------
                       Title: President
                              --------------------------------------------------
                                          "Atlantic In LLC"

                       SUN PIPE LINE GP LLC, a Delaware limited liability
                       company

                       By: /s/ James L. Fidler
                           -----------------------------------------------------
                       Name: James L. Fidler
                             ---------------------------------------------------
                       Title: President
                              --------------------------------------------------
                                          "Pipe Line GP LLC"

                          Signature Page 6 of 7 to the
                Contribution, Conveyance and Assumption Agreement

<PAGE>

                       SUNOCO R&M (IN) LLC, a Delaware limited liability company

                       By: /s/ James L. Fidler
                           -----------------------------------------------------
                       Name: James L. Fidler
                             ---------------------------------------------------
                       Title: President
                              --------------------------------------------------
                                          "R&M In LLC"

                       ATLANTIC REFINING & MARKETING CORP., a Delaware
                       corporation

                       By: /s/ S. Blake Heinemann
                           -----------------------------------------------------
                       Name: S. Blake Heinemann
                             ---------------------------------------------------
                       Title: Vice President
                              --------------------------------------------------
                                          "Atlantic Refining"

                          Signature Page 7 of 7 to the
                Contribution, Conveyance and Assumption Agreement<PAGE>

                                                                    Exhibit 10.5

================================================================================

                                OMNIBUS AGREEMENT

                                      among

                                  SUNOCO, INC.

                                SUNOCO, INC.(R&M)

                        SUN PIPE LINE COMPANY OF DELAWARE

                         ATLANTIC PETROLEUM CORPORATION

                         SUNOCO TEXAS PIPE LINE COMPANY

                        SUN PIPE LINE SERVICES (OUT) LLC

                         SUNOCO LOGISTICS PARTNERS L.P.

                    SUNOCO LOGISTICS PARTNERS OPERATIONS L.P.

                                       and

                               SUNOCO PARTNERS LLC

================================================================================

<PAGE>

                                OMNIBUS AGREEMENT

     THIS OMNIBUS AGREEMENT ("Agreement") is entered into on, and effective as
of, the Closing Date (as defined herein) among Sunoco, Inc., a Pennsylvania
corporation ("Sunoco"), on behalf of itself and the other Sunoco Entities (as
defined herein), Sunoco, Inc. (R&M), a Pennsylvania corporation ("Sunoco R&M"),
Sun Pipe Line Company of Delaware, a Delaware corporation ("Sun Delaware"),
Atlantic Petroleum Corporation, a Delaware corporation ("Atlantic Petroleum"),
Sunoco Texas Pipe Line Company, a Texas corporation ("Sun Texas"), Sun Pipe Line
Services (Out) LLC, a Delaware limited liability company ("Services Out LLC"),
Sunoco Logistics Partners L.P., a Delaware limited partnership (the
"Partnership"), Sunoco Logistics Partners Operations L.P., a Delaware limited
partnership (the "Operating Partnership"), and Sunoco Partners LLC, a
Pennsylvania limited liability company ("Sunoco Partners LLC"). The above-named
entities are sometimes referred to in this Agreement each as a "Party" and
collectively as the "Parties."

                                R E C I T A L S:

     1. The Parties desire by their execution of this Agreement to evidence
their understanding, as more fully set forth in Article II, with respect to
those business opportunities that the Sunoco Entities will not engage in for so
long as the Partnership is an Affiliate of Sunoco unless the Partnership has
declined to engage in any such business opportunity for its own account.

     2. The Parties desire by their execution of this Agreement to evidence
their understanding, as more fully set forth in Article III, with respect to
certain indemnification obligations of the Parties to each other.

     3. The Parties desire by their execution of this Agreement to evidence
their understanding, as more fully set forth in Article IV, with respect to the
amount to be paid by the Partnership for the general and administrative services
to be performed by the General Partner (as defined herein) and its Affiliates
(as defined herein) for and on behalf of the Partnership Group (as defined
herein).

     4. The Parties desire by their execution of this Agreement to evidence
their understanding, as more fully set forth in Article V, with respect to
certain capital and other expenditures to be reimbursed by Sunoco to the
Partnership Group and the completion by Sunoco R&M of certain tank maintenance
and inspection projects.

     5. The Parties desire by their execution of this Agreement to evidence
their understanding, as more fully set forth in Article VI, with respect to the
Partnership Group's option to purchase the Option Assets (as defined herein).

     6. The Parties desire by their execution of this Agreement to evidence
their understanding, as more fully set forth in Article VII, with respect to the
development and construction or acquisition of certain assets by the Partnership
Group.

<PAGE>

     In consideration of the premises and the covenants, conditions, and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereto
hereby agree as follows:

                                    ARTICLE I
                                   Definitions

          1.1  Definitions.

               (a) As used in this Agreement, the following terms shall have the
     respective meanings set forth below:

          "Administrative Fee" is defined in Section 4.1.

          "Affiliate" is defined in the Partnership Agreement.

          "Assets" means all assets conveyed, contributed, or otherwise
     transferred by the Sunoco Entities to the Partnership Group prior to or on
     the Closing Date and any assets acquired by the Partnership Group pursuant
     to the exercise of the purchase options granted under Article VI.

          "Change of Control" means, with respect to Sunoco, any of the
     following events: (a) any sale, lease, exchange, or other transfer (in one
     transaction or a series of related transactions) of all or substantially
     all of Sunoco's assets to any other Person unless immediately following
     such sale, lease, exchange, or other transfer such assets are owned,
     directly or indirectly, by Sunoco; (b) the consolidation or merger of
     Sunoco with or into another Person pursuant to a transaction in which the
     outstanding Voting Stock of Sunoco is changed into or exchanged for cash,
     securities, or other property, other than any such transaction where (i)
     the outstanding Voting Stock of Sunoco is changed into or exchanged for
     Voting Stock of the surviving corporation or its parent and (ii) the
     holders of the Voting Stock of Sunoco immediately prior to such transaction
     own, directly or indirectly, not less than a majority of the Voting Stock
     of the surviving Person or its parent immediately after such transaction;
     and (c) a "person" or "group" (within the meaning of Sections 13(d) or
     14(d)(2) of the Exchange Act) being or becoming the "beneficial owner" (as
     defined in Rules 13d-3 and 13d-5 under the Exchange Act) of more than 50%
     of all of the then outstanding Voting Stock of Sunoco, except in a merger
     or consolidation that would not constitute a Change of Control under clause
     (b) above.

          "Closing Date" means the date of the closing of the Partnership's
     initial public offering of Common Units.

          "Common Units" is defined in the Partnership Agreement.

          "Conflicts Committee" is defined in the Partnership Agreement.

          "Contribution Agreement" means that certain Contribution, Conveyance
     and Assumption Agreement, dated as of the Closing Date, among the General
     Partner, the Partnership, the Operating Partnership and certain other
     parties, together with the

                                       2

<PAGE>

     additional conveyance documents and instruments contemplated or referenced
     thereunder.

          "control" means the possession, directly or indirectly, 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.

          "Covered Environmental Losses" is defined in Section 3.1.

          "Darby Creek Tank Farm" means the tanks and pipelines located near
     Philadelphia, Pennsylvania as described on Schedule I to this Agreement.

          "Environmental Laws" means all federal, state, and local laws,
     statutes, rules, regulations, orders, and ordinances, now or hereafter in
     effect, relating to protection of human health and the environment
     including, without limitation, the federal Comprehensive Environmental
     Response, Compensation, and Liability Act, the Superfund Amendments
     Reauthorization Act, the Resource Conservation and Recovery Act, the Clean
     Air Act, the Federal Water Pollution Control Act, the Toxic Substances
     Control Act, the Oil Pollution Act, the Safe Drinking Water Act, the
     Hazardous Materials Transportation Act, and other environmental
     conservation and protection laws, each as amended from time to time.

          "Exchange Act" means the Securities Exchange Act of 1934, as amended.

          "Exton Facility" means the service station facility located at 645 E.
     Lincoln Highway, Exton, Pennsylvania 19341 upon the land described in
     Schedule VII to this Agreement.

          "Guaranty" is defined in Section 3.7.

          "General Partner" is defined in the Partnership Agreement.

          "Hazardous Substance" means (a) any substance that is designated,
     defined, or classified as a hazardous waste, hazardous material, pollutant,
     contaminant, or toxic or hazardous substance, or that is otherwise
     regulated under any Environmental Law, including, without limitation, any
     hazardous substance as defined under the Comprehensive Environmental
     Response, Compensation, and Liability Act, and (b) petroleum, oil,
     gasoline, natural gas, fuel oil, motor oil, waste oil, diesel fuel, jet
     fuel, and other refined petroleum hydrocarbons.

          "Indemnified Party" means the Partnership Group or the Sunoco
     Entities, as the case may be, in its capacity as the party entitled to
     indemnification in accordance with Article III.

          "Indemnifying Party" means either the Partnership Group or Sunoco, as
     the case may be, in its capacity as the party from whom indemnification may
     be sought in accordance with Article III.

                                       3

<PAGE>

          "Limited Partner" is defined in the Partnership Agreement.

          "Marcus Hook Tank Farm" means the tanks and pipelines located near
     Marcus Hook, Pennsylvania as described on Schedule I to this Agreement.

          "Mesa Pipeline" means an 80-mile crude oil pipeline from Midland,
     Texas to Colorado City, Texas.

          "Offer" is defined in Section 2.3.

          "Other Equipment" is defined in Section 5.4.

          "Option Assets" means the assets listed on Schedule II to this
     Agreement.

          "Option Asset Owner" means, with respect to an Option Asset, the
     applicable Sunoco Entity set forth opposite such Option Asset on Schedule
     II to this Agreement.

          "Paribas Mortgage" means that certain mortgage from Atlantic Refining
     & Marketing Corp. in favor of Banque Paribas and Banque Indosuez, dated
     March 10, 1998, as recorded in Book 1077, Page 5, Chester County,
     Pennsylvania.

          "Partnership Agreement" means the First Amended and Restated Agreement
     of Limited Partnership of Sunoco Logistics Partners L.P., dated as of the
     Closing Date, as such agreement is in effect on the Closing Date, to which
     reference is hereby made for all purposes of this Agreement. No amendment
     or modification to the Partnership Agreement subsequent to the Closing Date
     shall be given effect for the purposes of this Agreement unless consented
     to by each of the Parties to this Agreement.

          "Party" and "Parties" are defined in the introduction to this
     Agreement.

          "Partnership Group" means the Partnership, the Operating Partnership
     and any Subsidiary of any such Person, treated as a single consolidated
     entity.

          "Partnership Group Member" means any member of the Partnership Group.

          "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.

          "Prudent Industry Practice" means such practices, methods, acts,
     techniques, and standards as are in effect at the time in question that are
     consistent with (a) the standards generally followed by the United States
     pipeline and terminalling industries or (b) such higher standards as may be
     applied or followed by Sunoco or its Affiliates in the performance of
     similar tasks or projects, or by the Partnership Group or its Affiliates in
     the performance of similar tasks or projects.

          "Restricted Activities" is defined in Section 2.1.

                                       4

<PAGE>

          "Retained Assets" means the pipelines, terminals and other assets and
     investments owned by any of the Sunoco Entities that were not conveyed,
     contributed or otherwise transferred to the Partnership Group pursuant to
     the Contribution Agreement and other documents relating to the transactions
     referred to in the Contribution Agreement, including, without limitation,
     the applicable ownership interests in Mid-Valley Pipeline Company, West
     Texas Gulf Pipeline Company, the Mesa Pipeline, Inland Corporation, and the
     Tank System and the Other Equipment.

          "Subject Assets" is defined in Section 2.2.

          "Sunoco Entities" means Sunoco and any Person controlled, directly or
     indirectly, by Sunoco other than the Partnership Group or the General
     Partner; and "Sunoco Entity" means any of the Sunoco Entities.

          "Subsidiary" means, with respect to any Person, (a) a corporation of
     which more than 50% of the voting power of shares entitled (without regard
     to the occurrence of any contingency) to vote in the election of directors
     or other governing body of such corporation is owned, directly or
     indirectly, at the date of determination, by such Person, by one or more
     Subsidiaries of such Person or a combination thereof, (b) a partnership
     (whether general or limited) in which such Person or a Subsidiary of such
     Person is, at the date of determination, a general or limited partner of
     such partnership, but only if more than 50% of the partnership interests of
     such partnership (considering all of the partnership interests of the
     partnership as a single class) is owned, directly or indirectly, at the
     date of determination, by such Person, by one or more Subsidiaries of such
     Person, or a combination thereof, or (c) any other Person (other than a
     corporation or a partnership) in which such Person, one or more
     Subsidiaries of such Person, or a combination thereof, directly or
     indirectly, at the date of determination, has (i) at least a majority
     ownership interest or (ii) the power to elect or direct the election of a
     majority of the directors or other governing body of such Person.

          "Tank System" is defined in Section 5.4.

          "Units" is defined in the Partnership Agreement.

          "Voting Stock" means securities of any class of a Person entitling the
     holders thereof to vote on a regular basis in the election of members of
     the board of directors or other governing body of such Person.

          "Work" is defined in Section 5.4.

                                   ARTICLE II
                             Business Opportunities

          2.1 Restricted Activities. For so long as the Partnership is an
Affiliate of Sunoco, and except as permitted by Section 2.2, each of the Sunoco
Entities shall be prohibited from engaging in or acquiring any business having
assets engaged in the following activities (the "Restricted Activities"):

                                       5

<PAGE>

               (a) the purchase of crude oil at the wellhead; or

               (b) the ownership and/or operation of crude oil pipelines or
     terminals, refined products pipelines or terminals, or liquefied petroleum
     gas (LPG) terminals in the continental United States.

          2.2 Permitted Exceptions.

               (a) Notwithstanding any provision of Section 2.1 to the contrary,
     the Sunoco Entities may engage in the following activities under the
     following circumstances:

                    (i) the ownership and/or operation of any of the Retained
     Assets (including replacements of the Retained Assets);

                    (ii) the ownership and/or operation of any logistics asset,
     including, without limitation, any pipeline or terminal, constructed by a
     Sunoco Entity within a manufacturing or refining facility (including,
     without limitation, any chemical plant or coke plant) of a Sunoco Entity in
     connection with the operation of that facility;

                    (iii) the ownership and/or operation of any asset or group
     of related assets used in the activities described in (a) or (b) of Section
     2.1 that are acquired or constructed by a Sunoco Entity after the date of
     this Agreement (the "Subject Assets") if:

                    (A) the fair market value of the Subject Assets (as
     determined in good faith by the Board of Directors, or other governing
     body, of the Sunoco Entity that will own the Subject Assets) is less than
     $5 million at the time of such acquisition by the Sunoco Entity or
     completion of construction, as the case may be;

                    (B) in the case of an acquisition of Subject Assets with a
     fair market value (as determined in good faith by the Board of Directors,
     or other governing body, of the Sunoco Entity that will own the Subject
     Assets) equal to or greater than $5 million at the time of such acquisition
     by a Sunoco Entity, the Partnership has been offered the opportunity to
     purchase the Subject Assets in accordance with Section 2.3 and the
     Partnership (with the concurrence of the Conflicts Committee) has elected
     not to purchase the Subject Assets; or

                    (C) in the case of the construction of Subject Assets with a
     fair market value (as determined in good faith by the Board of Directors,
     or other governing body, of the Sunoco Entity that will own the Subject
     Assets) equal to or greater than $5 million at the time of completion of
     construction, the Partnership has been offered the opportunity to purchase
     the Subject Assets in accordance with Section 2.3 and the Partnership (with
     the concurrence of the Conflicts Committee) has elected not to purchase the
     Subject Assets.

                                       6

<PAGE>

          2.3 Procedures.

               (a) If a Sunoco Entity acquires or constructs Subject Assets
     described in Section 2.2(a)(iii)(B) or (C), then not later than six months
     after the consummation of the acquisition or the completion of construction
     by such Sunoco Entity of the Subject Assets, as the case may be, the Sunoco
     Entity shall notify the General Partner in writing of such acquisition or
     construction and offer the Partnership Group the opportunity to purchase
     such Subject Assets in accordance with this Section 2.3 (the "Offer"). The
     Offer shall set forth the terms relating to the purchase of the Subject
     Assets and, if any Sunoco Entity desires to utilize the Subject Assets, the
     Offer will also include the commercially reasonable terms on which the
     Partnership Group will provide services to the Sunoco Entity to enable the
     Sunoco Entity to utilize the Subject Assets. As soon as practicable, but in
     any event within 60 days after receipt of such written notification, the
     General Partner shall notify the Sunoco Entity in writing that either (i)
     the General Partner has elected, with the approval of the Conflicts
     Committee, not to cause a Partnership Group Member to purchase the Subject
     Assets, in which event the Sunoco Entity shall be forever free to continue
     to own or operate such Subject Assets, or (ii) the General Partner has
     elected to cause a Partnership Group Member to purchase the Subject Assets,
     in which event the procedures outlined in this Section 2.3 shall apply.

               (b) If the Sunoco Entity and the General Partner (with the
     concurrence of the Conflicts Committee) are able to agree on the fair
     market value of the Subject Assets that are subject to the Offer and the
     other terms of the Offer including, without limitation, the terms, if any,
     on which the Partnership Group will provide services to the Sunoco Entity
     to enable the Sunoco Entity to utilize the Subject Assets, within 60 days
     after receipt by the General Partner of the Offer, a Partnership Group
     Member shall purchase the Subject Assets for the agreed upon fair market
     value as soon as commercially practicable after such agreement has been
     reached and, if applicable, enter into an agreement with the Sunoco Entity
     to provide services in a manner consistent with the Offer. The purchase
     agreement for the Subject Assets will provide for the purchase price to be
     paid, at the option of the Sunoco Entity, in cash, Units, or an
     interest-bearing promissory note (the interest rate and other terms of
     which shall be mutually agreed upon by the Sunoco Entity and the General
     Partner).

               (c) If the Sunoco Entity and the General Partner are unable to
     agree on the fair market value of the Subject Assets that are subject to
     the Offer or the other terms of the Offer including, if applicable, the
     terms on which the Partnership Group will provide services to the Sunoco
     Entity to enable the Sunoco Entity to utilize the Subject Assets within 60
     days after receipt by the General Partner of the Offer, the Sunoco Entity
     and the General Partner will engage a mutually agreed upon, nationally
     recognized investment banking firm to determine the fair market value of
     the Subject Assets and/or the other terms on which the Partnership Group
     and the Sunoco Entity are unable to agree. Such investment banking firm
     will determine the fair market value of the Subject Assets and/or the other
     terms on which the Partnership Group and the Sunoco Entity are unable to
     agree within 30 days of its engagement and furnish the Sunoco Entity and
     the General Partner its determination. The fees of the investment banking
     firm will be split equally between the Sunoco Entity and the Partnership
     Group. Once the investment

                                       7

<PAGE>

     banking firm has submitted its determination of the fair market value of
     the Subject Assets and/or the other terms on which the Partnership Group
     and the Sunoco Entity are unable to agree, the General Partner will have
     the right, but not the obligation, subject to the approval of the Conflicts
     Committee, to cause a Partnership Group Member to purchase the Subject
     Assets pursuant to the Offer as modified by the determination of the
     investment banking firm. If the General Partner elects to cause a
     Partnership Group Member to purchase the Subject Assets, then the
     Partnership Group Member shall purchase the Subject Assets pursuant to the
     Offer as modified by the determination of the investment banking firm as
     soon as commercially practicable after such determination and, if
     applicable, enter into an agreement with the Sunoco Entity to provide
     services in a manner consistent with the Offer, as modified by the
     determination of the investment banking firm, if applicable. The purchase
     agreement for the Subject Assets will provide for the purchase price to be
     paid, at the option of the Sunoco Entity, in cash, Units, or an
     interest-bearing promissory note (the interest rate and other terms of
     which shall be mutually agreed upon by the Sunoco Entity and the General
     Partner).

          2.4 Scope of Prohibition. Except as provided in this Article II and
the Partnership Agreement, each Sunoco Entity shall be free to engage in any
business activity, including those that may be in direct competition with any
Partnership Group Member.

          2.5 Enforcement. The Sunoco Entities agree and acknowledge that the
Partnership Group does not have an adequate remedy at law for the breach by the
Sunoco Entities of the covenants and agreements set forth in this Article II,
and that any breach by the Sunoco Entities of the covenants and agreements set
forth in this Article II would result in irreparable injury to the Partnership
Group. The Sunoco Entities further agree and acknowledge that any Partnership
Group Member may, in addition to the other remedies which may be available to
the Partnership Group, file a suit in equity to enjoin the Sunoco Entities from
such breach, and consent to the issuance of injunctive relief under this
Agreement.

                                  ARTICLE III
                                 Indemnification

          3.1 Environmental Indemnification.

               (a) Subject to Section 3.2, Sunoco shall indemnify, defend and
     hold harmless the Partnership Group for a period of 30 years after the
     Closing Date from and against environmental and toxic tort losses
     (including, without limitation, economic losses, diminution in value
     suffered by third parties, and lost profits), damages, injuries (including,
     without limitation, personal injury and death), liabilities, claims,
     demands, causes of action, judgments, settlements, fines, penalties, costs,
     and expenses (including, without limitation, court costs and reasonable
     attorney's and expert's fees) of any and every kind or character, known or
     unknown, fixed or contingent, suffered or incurred by the Partnership Group
     or any third party by reason of or arising out of:

                    (i) any violation or correction of violation of
     Environmental Laws, or

                                       8

<PAGE>

                    (ii) any event or condition associated with ownership
     or operation of the Assets (including, without limitation, the
     presence of Hazardous Substances on, under, about or migrating to or
     from the Assets or the disposal or release of Hazardous Substances
     generated by operation of the Assets at non-Asset locations)
     including, without limitation, (A) the cost and expense of any
     investigation, assessment, evaluation, monitoring, containment,
     cleanup, repair, restoration, remediation, or other corrective action
     required or necessary under Environmental Laws, (B) the cost or
     expense of the preparation and implementation of any closure,
     remedial, corrective action, or other plans required or necessary
     under Environmental Laws, and (C) the cost and expense for any
     environmental or toxic tort pre-trial, trial, or appellate legal or
     litigation support work;

     but only to the extent that such violation complained of under Section
     3.1(a)(i) or such events or conditions included under Section 3.1(a)(ii)
     occurred before the Closing Date (collectively, "Covered Environmental
     Losses").

               (b) The Partnership Group shall indemnify, defend and hold
     harmless the Sunoco Entities from and against environmental and toxic tort
     losses (including, without limitation, economic losses, diminution in value
     suffered by third parties, and lost profits), damages, injuries (including,
     without limitation, personal injury and death), liabilities, claims,
     demands, causes of action, judgments, settlements, fines, penalties, costs,
     and expenses (including, without limitation, court costs and reasonable
     attorney's and expert's fees) of any and every kind or character, known or
     unknown, fixed or contingent, suffered or incurred by the Sunoco Entities
     or any third party by reason of or arising out of:

                    (i) any violation or correction of violation of
     Environmental Laws, or

                    (ii) any event or condition associated with ownership
     or operation of the Assets (including, but not limited to, the
     presence of Hazardous Substances on, under, about or migrating to or
     from the Assets or the disposal or release of Hazardous Substances
     generated by operation of the Assets at non-Asset locations)
     including, without limitation, (A) the cost and expense of any
     investigation, assessment, evaluation, monitoring, containment,
     cleanup, repair, restoration, remediation, or other corrective action
     required or necessary under Environmental Laws, (B) the cost or
     expense of the preparation and implementation of any closure,
     remedial, corrective action, or other plans required or necessary
     under Environmental Laws, and (C) the cost and expense for any
     environmental or toxic tort pre-trial, trial, or appellate legal or
     litigation support work;

     and regardless of whether such violation complained of under Section
     3.1(b)(i) or such events or conditions included under Section 3.1(b)(ii)
     occurred before or after the Closing Date, except to the extent that any of
     the foregoing are Covered Environmental Losses for which the Partnership
     Group is entitled to indemnification from Sunoco under this Article III.

                                       9

<PAGE>

          3.2 Limitations Regarding Environmental Indemnification. Sunoco shall
be obligated to indemnify, defend and hold harmless the Partnership Group for
100% of all Covered Environmental Losses asserted within the first 21 years
after the Closing Date. Sunoco's obligation to indemnify, defend and hold
harmless the Partnership Group for Covered Environmental Losses asserted in any
given year thereafter shall decrease by 10% a year in accordance with Schedule
III attached hereto. There is no monetary cap on the amount of indemnity
coverage provided by Sunoco under Section 3.1(a) or by the Partnership Group
under Section 3.1(b).

          3.3 Right of Way Indemnification. Sunoco shall indemnify, defend and
hold harmless the Partnership Group from and against any losses, damages,
liabilities, claims, demands, causes of action, judgments, settlements, fines,
penalties, costs, and expenses (including, without limitation, court costs and
reasonable attorney's and expert's fees) of any and every kind or character,
known or unknown, fixed or contingent, suffered or incurred by the Partnership
Group by reason of or arising out of (a) the failure of the applicable
Partnership Group Member to be the owner of such valid and indefeasible easement
rights or fee ownership interests in and to the lands on which any crude oil or
refined products pipeline or related pump station, tank farm or equipment
conveyed or contributed to the applicable Partnership Group Member on the
Closing Date is located as of the Closing Date; (b) the failure of the
applicable Partnership Group Member to have the consents, licenses and permits
necessary to allow any such pipeline referred to in clause (a) of this Section
3.3 to cross the roads, waterways, railroads and other areas upon which any such
pipeline is located as of the Closing Date; and (c) the cost of curing any
condition set forth in clause (a) or (b) above that does not allow any Asset to
be operated in accordance with Prudent Industry Practice, to the extent that
Sunoco is notified in writing of any of the foregoing within 10 years after the
Closing Date.

          3.4 Additional Indemnification.

              (a) In addition to and not in limitation of the indemnification
     rovided under Sections 3.1(a) and 3.3, Sunoco shall indemnify, defend, and
     old harmless the Partnership Group from and against any losses, damages,
     iabilities, claims, demands, causes of action, judgments, settlements,
     ines, penalties, costs, and expenses (including, without limitation, court
     osts and reasonable attorney's and expert's fees) of any and every kind or
     haracter, known or unknown, fixed or contingent, suffered or incurred by
     he Partnership Group by reason of or arising out of (i) events and
     onditions associated with the operation of the Assets and occurring before
     he Closing Date (other than Covered Environmental Losses which are
     rovided for under Sections 3.1 and 3.2) to the extent that Sunoco is
     otified in writing of any of the foregoing within 10 years after the
     losing Date, (ii) the currently pending legal actions against the Sunoco
     ntities set forth on Schedule IV attached hereto, (iii) events and
     onditions associated with the Retained Assets and whether occurring before
     r after the Closing Date, (iv) the completion of the tank maintenance and
     nspection projects for the Darby Creek Tank Farm that are listed on
     chedule I to this Agreement, (v) the failure to obtain any necessary
     onsent from the Public Utilities Commission of Ohio for the conveyance to
     he Partnership Group of the crude oil pipeline located in Ohio, (vi) the
     ailure to cause the Paribas Mortgage to be released of record in Chester
     ounty, Pennsylvania to the extent it covers the property in Exton,
     ennsylvania more particularly described on Schedule VIII to this
     greement, and

                                       10

<PAGE>

     (vii) all federal, state and local income tax liabilities attributable to
     the operation of the Assets prior to the Closing Date, including any such
     income tax liabilities of the Sunoco Entities that may result from the
     consummation of the formation transactions for the Partnership Group and
     the General Partner.

               (b) In addition to and not in limitation of the indemnification
     provided under Section 3.1(b) or the Partnership Agreement, the Partnership
     Group shall indemnify, defend, and hold harmless the Sunoco Entities from
     and against any losses, damages, liabilities, claims, demands, causes of
     action, judgments, settlements, fines, penalties, costs, and expenses
     (including, without limitation, court costs and reasonable attorney's and
     expert's fees) of any and every kind or character, known or unknown, fixed
     or contingent, suffered or incurred by the Sunoco Entities by reason of or
     arising out of events and conditions associated with the operation of the
     Assets and occurring on or after the Closing Date (other than Covered
     Environmental Losses which are provided for under Section 3.1), unless such
     indemnification would not be permitted under the Partnership Agreement by
     reason of one of the provisos contained in Section 7.7(a) of the
     Partnership Agreement.

          3.5 Indemnification Procedures.

               (a) The Indemnified Party agrees that within a reasonable period
     of time after it becomes aware of facts giving rise to a claim for
     indemnification under this Article III, it will provide notice thereof in
     writing to the Indemnifying Party, specifying the nature of and specific
     basis for such claim.

               (b) The Indemnifying Party shall have the right to control all
     aspects of the defense of (and any counterclaims with respect to) any
     claims brought against the Indemnified Party that are covered by the
     indemnification under this Article III, including, without limitation, the
     selection of counsel, determination of whether to appeal any decision of
     any court and the settling of any such matter or any issues relating
     thereto; provided, however, that no such settlement shall be entered into
     without the consent of the Indemnified Party unless it includes a full
     release of the Indemnified Party from such matter or issues, as the case
     may be.

               (c) The Indemnified Party agrees to cooperate fully with the
     Indemnifying Party, with respect to all aspects of the defense of any
     claims covered by the indemnification under this Article III, including,
     without limitation, the prompt furnishing to the Indemnifying Party of any
     correspondence or other notice relating thereto that the Indemnified Party
     may receive, permitting the name of the Indemnified Party to be utilized in
     connection with such defense, the making available to the Indemnifying
     Party of any files, records or other information of the Indemnified Party
     that the Indemnifying Party considers relevant to such defense and the
     making available to the Indemnifying Party of any employees of the
     Indemnified Party; provided, however, that in connection therewith the
     Indemnifying Party agrees to use reasonable efforts to minimize the impact
     thereof on the operations of the Indemnified Party and further agrees to
     maintain the confidentiality of all files, records, and other information
     furnished by the Indemnified Party pursuant to this Section 3.5. In no
     event shall the obligation of the

                                       11

<PAGE>

     Indemnified Party to cooperate with the Indemnifying Party as set forth in
     the immediately preceding sentence be construed as imposing upon the
     Indemnified Party an obligation to hire and pay for counsel in connection
     with the defense of any claims covered by the indemnification set forth in
     this Article III; provided, however, that the Indemnified Party may, at its
     own option, cost and expense, hire and pay for counsel in connection with
     any such defense. The Indemnifying Party agrees to keep any such counsel
     hired by the Indemnified Party informed as to the status of any such
     defense, but the Indemnifying Party shall have the right to retain sole
     control over such defense.

               (d) In determining the amount of any loss, cost, damage or
     expense for which the Indemnified Party is entitled to indemnification
     under this Agreement, the gross amount of the indemnification will be
     reduced by (i) any insurance proceeds realized by the Indemnified Party,
     and such correlative insurance benefit shall be net of any incremental
     insurance premium that becomes due and payable by the Indemnified Party as
     a result of such claim and (ii) all amounts recovered by the Indemnified
     Party under contractual indemnities from third Persons.

               (e) The date on which notification of a claim for indemnification
     is received by the Indemnifying Party shall determine whether such claim is
     timely made and the percentage of the indemnification obligation that
     applies under Section 3.2, if applicable.

          3.6 Sunoco Guarantee of the General Partner's Indemnification Relating
to Section 4.1 of the Contribution Agreement. Sunoco agrees to guarantee the
obligations of the General Partner to make any payments required under the terms
of Section 4.1 of the Contribution Agreement (the "Guaranty"). The Guaranty is
an absolute, irrevocable, and continuing guaranty of payment, not collection,
and the fact that at any time, or from time to time, the General Partner's
obligations under Section 4.1 of the Contribution Agreement may be paid in full
does not affect Sunoco's obligation with respect to any future liability of the
General Partner under Section 4.1 of the Contribution Agreement. Sunoco may not
rescind or revoke its obligations with respect to the Guaranty.

                                       12

<PAGE>

                                   ARTICLE IV
                       General and Administrative Expenses

          4.1 General.

               (a) The Partnership will pay the General Partner an
     administrative fee (the "Administrative Fee") of $8.0 million per year for
     the provision by the General Partner and its Affiliates for the Partnership
     Group's benefit of all the general and administrative services that Sunoco
     and its Affiliates have traditionally provided in connection with the
     Assets including, without limitation, the general and administrative
     services listed on Schedule V to this Agreement. Sunoco may increase the
     Administrative Fee on the second and third anniversary date of this
     Agreement by an amount up to the lesser of (i) 2.5% or (ii) the Consumer
     Price Index-- All Urban Consumers, U.S. City Average, Not Seasonally
     Adjusted for the applicable year. The General Partner, with the approval
     and consent of its Conflicts Committee, may agree on behalf of the
     Partnership to further increases in the Administrative Fee in connection
     with expansions of the operations of the Partnership Group through the
     acquisition or construction of new assets or businesses. After this
     three-year period, the General Partner will determine the amount of general
     and administrative expenses that will be properly allocated to the
     Partnership in accordance with the terms of the Partnership Agreement.

               (b) At the end of each year, the Partnership will have the right
     to submit to the General Partner a proposal to reduce the amount of the
     Administrative Fee for that year if the Partnership believes, in good
     faith, that the general and administrative services performed by the
     General Partner and its Affiliates for the benefit of the Partnership Group
     for the year in question do not justify payment of the full Administrative
     Fee for that year. If the Partnership submits such a proposal to the
     General Partner, the General Partner agrees that it will negotiate in good
     faith with the Partnership to determine if the Administrative Fee for that
     year should be reduced and, if so, by how much.

               (c) The Administrative Fee shall not include and the Partnership
     Group shall reimburse the General Partner for:

                    (i) salaries of employees of the General Partner, to
     the extent, but only to the extent, such employees perform services
     for the Partnership Group; and

                    (ii) the cost of employee benefits relating to
     employees of the General Partner, such as 401(k), pension, and health
     insurance benefits, to the extent, but only to the extent, such
     employees perform services for the Partnership Group.

                                    ARTICLE V
                         Capital and Other Expenditures

          5.1 Reimbursement of Maintenance Capital and Other Expenditures for
Pipeline Integrity Management. Sunoco will reimburse the Partnership Group for
maintenance capital and any other expenditures incurred by the Partnership Group
during the

                                       13

<PAGE>

five-year period commencing on January 1, 2002 in order to comply with the U.S.
Department of Transportation's Pipeline Integrity Management Rule 49CFR195.452
to the extent such expenditures exceed $8.0 million in any calendar year and
subject to a maximum aggregate reimbursement by Sunoco under this Section 5.1 of
$15.0 million over this five-year period.

          5.2 Completion of Tank Maintenance and Inspection Projects. Sunoco R&M
will, at its sole cost and expense, complete the tank maintenance and inspection
projects for the Darby Creek Tank Farm that are listed on Schedule VI to this
Agreement. Sunoco will dedicate the necessary resources in order to complete the
tank and maintenance projects under this Section 5.2 in accordance with Prudent
Industry Practice, in a manner consistent with the observance of all safety and
environmental qualities, and in compliance with the terms of all agreements
between Sunoco and the Partnership Group with regard to such duties. Sunoco R&M
will coordinate such tank maintenance and inspection projects with the
Partnership Group and use its best efforts to minimize any inconvenience to or
interruption of the conduct of business by the Partnership Group and its tenants
and invitees.

          5.3 Reimbursement For Expenditures For Darby Creek Tank Farm And
Marcus Hook Tank Farm. In addition to its obligations under Sections 5.1 and
5.2, Sunoco R&M will reimburse the Partnership Group for maintenance capital and
any other expenditures incurred by the Partnership Group that are required to
conform the Darby Creek Tank Farm and the Marcus Hook Tank Farm to applicable
industry standards and regulatory requirements as of the Closing Date, subject
to a maximum aggregate reimbursement by Sunoco under this Section 5.3 of $10.0
million. The maintenance capital and other expenditures required to be
reimbursed under this Section 5.3 shall include the following: (i) cathodic
protection upgrades in existence on the date of this Agreement; (ii) raising
tank farm pipelines above ground; (iii) repair or demolition of the two riveted
tanks at the Marcus Hook Tank Farm; and (iv) any other upgrades or maintenance
required to put the Darby Creek Tank Farm and the Marcus Hook Tank Farm in
compliance with all applicable industry standards and regulatory requirements as
of the Closing Date.

          5.4 Completion of Removal Services at Exton Facility. Sunoco will
     cause a Sunoco Entity to complete, at its sole cost and expense, the
     following activities at the Exton Facility as soon as practicable, but, in
     the case of clauses (a), (b), (c) and (d) of this Section 5.4, in no event
     later than 120 days after the Closing Date:

               (a) the removal of the underground storage tank system and
     ancillary equipment located at the Exton Facility including, without
     limitation, the three 10,000 gallon tanks (no.'s 005, 006 and 007),
     all dispensers, piping, underground tank anchors, and other related
     pipes and equipment (collectively, the "Tank System");

               (b) the removal of the 250 gallon above-ground bulk storage
     tank used for motor oil storage and all related pipes and other
     equipment;

               (c) the removal of all fuel pumps;

                                       14

<PAGE>

               (d) the removal of the canopy located above the fuel pumps
     (hereinafter, the equipment as identified in clauses (b), (c) and (d)
     of this Section 5.4 that is destined for removal are collectively
     referred to as the "Other Equipment");

               (e) the performance of investigatory, remedial, and
     monitoring activities required under applicable Environmental Laws to
     address any petroleum hydrocarbons or other substances that have
     emanated from operation of the Tank System or the Other Equipment (the
     "Work"); and

               (f) the securing of a "no further action" or similar closure
     letter from the governmental entity with regulatory oversight of the
     Tank System, the Other Equipment and the Work that is reasonably
     acceptable to the Partnership Group indicating that no further
     investigatory, remedial or monitoring activities are required to be
     taken with respect to the conditions on the Exton Facility site for
     which the applicable Sunoco Entity is pursuing removal of the Tank
     System and the Other Equipment and performance of any Work. In
     pursuing removal of the Tank System and the Other Equipment and
     performance of the Work, the applicable Sunoco Entity shall timely, at
     its sole cost and expense: (i) coordinate such activities with the
     Partnership Group and use its best efforts to minimize any
     inconvenience to or interruption of the conduct of business by the
     Partnership Group and its tenants and invitees; (ii) perform such
     activities in compliance with all applicable Environmental Laws; (iii)
     obtain all permits, registrations, licenses or authorizations that may
     be required to perform such activities; (iv) deliver to the
     Partnership Group copies of all data, reports, and correspondence
     either submitted to or received from the applicable governmental
     entity with regulatory oversight of such activities with respect to
     conditions at the Exton Facility site; and (v) repair any and all
     damages to the Exton Facility site (or, if repair is not possible,
     replace the damaged property) caused by removal of the Tank System or
     the Other Equipment and performance of the Work, and leave the Exton
     Facility site in the approximate same or better condition than it was
     prior to commencement of removal of the Tank System and the Other
     Equipment and performance of the Work. In granting access to the Exton
     Facility site to the applicable Sunoco Entity for removal of the Tank
     System and the Other Equipment and performance of any Work, the
     Partnership Group does not consent in any way to the imposition of any
     use restrictions, deed certification requirements, or any other form
     of restriction on the current or future use of the Exton Facility
     site.

          Sunoco and the applicable Sunoco Entity will not be responsible for
     the removal of the building or the above-ground heating oil tank located at
     the Exton Facility.

          5.5 Release of Paribas Mortgage. Sunoco will ensure that the
     applicable Sunoco Entity will, at its sole cost and expense, cause the
     Paribas Mortgage (to the extent it covers the property in Exton,
     Pennsylvania more particularly described on Schedule VIII to this
     Agreement) to be released of record in Chester County, Pennsylvania as soon
     as practicable after the Closing Date.

                                       15

<PAGE>

                                   ARTICLE VI
                                Purchase Options

          6.1 Option to Purchase Certain Assets retained by Sunoco Entities.

               (a) Each Option Asset Owner hereby grants to the Partnership
     Group the unconditional right and option for a period of 10 years from the
     Closing Date to purchase for fair market value at the time of purchase all
     of such Option Asset Owner's right title and interest in, to and under the
     Option Asset(s) set forth next to its name on Schedule II. The Partnership
     Group may exercise this purchase option from time to time for all, part or
     none of the Option Assets.

               (b) Sunoco will take all action required to cause the Option
     Asset Owners to comply with the terms of this Article VI.

               (c) The Parties acknowledge that all potential transfers of
     Option Assets pursuant to this Article VI are subject to obtaining any and
     all written consents of governmental authorities and other third parties
     and to the terms of all existing agreements in respect of the Option Assets
     including, without limitation, any rights of first refusal of the parties
     to such agreements to purchase the Option Assets.

          6.2 Procedures.

               (a) If a Partnership Group Member decides to exercise the option
     to purchase an Option Asset, it will provide written notice to the
     applicable Option Asset Owner of such exercise, the fair market value it
     proposes to pay for the Option Asset, and the other terms of the purchase
     including, if requested by a Sunoco Entity, the terms on which the
     Partnership Group Member will provide services to the Sunoco Entity to
     enable the Sunoco Entity to utilize the Option Asset. The decision to
     purchase an Option Asset, the fair market value to be paid for the Option
     Asset, and the other terms of the purchase including, if applicable, the
     terms on which the Partnership Group Member will provide services to the
     Sunoco Entity to enable the Sunoco Entity to utilize the Option Asset shall
     be approved by the Conflicts Committee. If the Partnership Group Member and
     the applicable Option Asset Owner are unable to agree on the fair market
     value of the Option Asset or the other terms of the purchase including, if
     applicable, the terms on which the Partnership Group Member will provide
     services to the Sunoco Entity to enable the Sunoco Entity to utilize the
     Option Asset, the Partnership Group Member and the applicable Option Asset
     Owner will engage a mutually-agreed-upon, nationally recognized investment
     banking firm to determine the fair market value of the Option Asset and/or
     the other terms on which the Partnership Group Member and the Sunoco Entity
     are unable to agree. The fees of the investment banking firm will be split
     equally between the applicable Option Asset Owner and the Partnership
     Group. Once the investment banking firm submits its determination of the
     fair market value of the Option Asset and/or the other terms on which the
     applicable Option Asset Owner and the Partnership Group Member are unable
     to agree, the Partnership Group Member will have the right, but not the
     obligation, to purchase the Option Asset on the terms as modified by the
     determination of the investment banking firm. The Partnership Group Member
     will

                                       16

<PAGE>

     provide written notice of its decision to the applicable Option Asset Owner
     within 15 days after the investment banking firm has submitted its
     determination. Failure to provide such notice within such 15-day period
     shall be deemed to constitute a decision not to purchase the Option Asset.

               (b) If a Partnership Group Member chooses to exercise its option
     to purchase an Option Asset under Section 6.2(a), this Agreement shall
     become a contract of sale and purchase for the Option Asset pursuant to
     which the applicable Option Asset Owner shall be obligated to sell the
     Option Asset to the Partnership Group Member and the Partnership Group
     Member shall be obligated to purchase the Option Asset from the applicable
     Option Asset Owner and, if applicable, the Partnership Group Member will
     enter into an agreement with the Sunoco Entity setting forth the terms on
     which the Partnership Group Member will provide services to the Sunoco
     Entity to enable the Sunoco Entity to utilize the Option Asset. The terms
     of the purchase and sale agreement will include the following:

                    (i) the Partnership Group Member will deliver a cash
     purchase price (unless the Partnership Group Member and the applicable
     Option Asset Owner agree that the consideration will be paid by means
     of Units or an interest-bearing promissory note);

                    (ii) the Partnership Group will be entitled to the
     benefit of the indemnification contained in Article III of this
     Agreement for the remaining term of such indemnification with respect
     to events or conditions associated with the operation of the Option
     Asset and occurring before the date of acquisition of the Option Asset
     by the Partnership Group Member;

                    (iii) the applicable Option Asset Owner will represent
     that it has good and indefeasible title to the Option Asset, subject
     to all recorded and unrecorded matters and all physical conditions and
     other matters in existence on the closing date for the purchase of the
     applicable Option Asset, plus any other such matters as the
     Partnership Group Member may approve, which approval will not be
     unreasonably withheld. If the Partnership Group Member desires to
     obtain any title insurance with respect to the Option Asset, the full
     cost and expense of obtaining the same (including but not limited to
     the cost of title examination, document duplication and policy
     premium) shall be borne by the Partnership Group Member;

                    (iv) the applicable Option Asset Owner will grant to
     the Partnership Group Member the right, exercisable at the Partnership
     Group Member's risk and expense, to make such surveys, tests and
     inspections of the Option Asset as the Partnership Group Member may
     deem desirable, so long as such surveys, tests or inspections do not
     damage the Option Asset or interfere with the activities of the
     applicable Option Asset Owner thereon and so long as the Partnership
     Group Member has furnished the applicable Option Asset Owner with
     evidence that adequate liability insurance is in full force and
     effect;

                                       17

<PAGE>

                    (v) the Partnership Group Member will have the right to
     terminate its obligation to purchase the Option Asset under this
     Article VI if the results of any searches, surveys, tests or
     inspections conducted pursuant to Section 6.2(b)(iii) or (iv) above
     are, in the reasonable opinion of the Partnership Group,
     unsatisfactory;

                    (vi) the closing date for the purchase of the Option
     Asset shall occur no later than 180 days following receipt by Sunoco
     of written notice by the Partnership Group Member of its intention to
     exercise its option to purchase the Option Asset pursuant to Section
     6.2(a);

                    (vii) the applicable Option Asset Owner shall execute,
     have acknowledged and deliver to the Partnership Group Member a
     special warranty deed, assignment of easement, or comparable document,
     as appropriate, in the applicable jurisdiction, on the closing date
     for the purchase of the Option Asset constituting a real property
     interest conveying the Option Asset unto the Partnership Group Member
     free and clear of all encumbrances other than those set forth in
     Section 6.2(b)(iii) above;

                    (viii) the sale of any Option Asset constituting a real
     property interest shall be made on an "as is," "where is" and "with
     all faults" basis, and the instruments conveying such Option Asset
     shall contain appropriate disclaimers; and

                    (ix) neither the applicable Option Asset Owner nor the
     applicable Partnership Group Member shall have any obligation to sell
     or buy the applicable Option Asset if any of the consents referred to
     in Section 6.1(c) has not been obtained.

               (c) If a Partnership Group Member chooses or is deemed to have
     chosen not to exercise its option to purchase an Option Asset at the price
     determined by the investment banking firm under Section 6.2(a), all future
     rights to purchase such Option Asset by the Partnership Group will be
     extinguished.

                                   ARTICLE VII
                       Development and Purchase of Assets

          7.1 Development and Purchase of Assets. For so long as the Partnership
is an Affiliate of Sunoco, Sunoco may at any time propose to the General Partner
that the Partnership Group develop and construct, or acquire an asset, and if
the General Partner determines in its good faith judgment, with the concurrence
of its Conflicts Committee, that the development and construction, or
acquisition of the asset, including the terms on which a Sunoco Entity would
agree to use the asset, will be beneficial on the whole to the Partnership Group
and that proceeding with the development and construction, or acquisition of the
asset will not effectively preclude the Partnership Group from undertaking
another project that will be more beneficial to the Partnership Group, the
Partnership Group will use its commercially reasonable efforts to finance,
develop and construct, or acquire the asset, as the case may be.

                                       18

<PAGE>

                                  ARTICLE VIII
                                  Miscellaneous

          8.1 Choice of Law; Submission to Jurisdiction. This Agreement shall be
subject to and governed by the laws of the Commonwealth of Pennsylvania,
excluding any conflicts-of-law rule or principle that might refer the
construction or interpretation of this Agreement to the laws of another state.
Each Party hereby submits to the jurisdiction of the state and federal courts in
the Commonwealth of Pennsylvania and to venue in Philadelphia, Pennsylvania.

          8.2 Notice. All notices or requests or consents provided for by, or
permitted to be given pursuant to, this Agreement must be in writing and must be
given by depositing same in the United States mail, addressed to the Person to
be notified, postpaid, and registered or certified with return receipt requested
or by delivering such notice in person or by telecopier or telegram to such
Party. Notice given by personal delivery or mail shall be effective upon actual
receipt. Notice given by telegram or telecopier shall be effective upon actual
receipt if received during the recipient's normal business hours or at the
beginning of the recipient's next business day after receipt if not received
during the recipient's normal business hours. All notices to be sent to a Party
pursuant to this Agreement shall be sent to or made at the address set forth
below such Party's signature to this Agreement or at such other address as such
Party may stipulate to the other Parties in the manner provided in this Section
8.2.

          if to the Sunoco Entities:

               Sunoco, Inc.
               Ten Penn Center
               1801 Market Street
               Philadelphia, Pennsylvania 19103
               Attn:  Senior Vice President - Refining
               Telecopy:  215-977-3902

                    with a copy to:

                    Mike Kuritzkes
                    Vice President and General Counsel
                    Sunoco, Inc.
                    Ten Penn Center
                    1801 Market Street
                    Philadelphia, Pennsylvania 19103
                    Telecopy: (215) 977-3559

          if to the Partnership Group

               Sunoco Logistics Partners L.P.
               c/o Sunoco Partners LLC, its general partner
               1801 Market Street
               Philadelphia, Pennsylvania 19103

                                       19

<PAGE>

               Attn:  President and Chief Executive Officer
               Telecopy:  (215) 977-3902

                    with a copy to:

                    Jeffrey W. Wagner
                    General Counsel and Secretary
                    Sunoco Partners LLC
                    1801 Market Street
                    Philadelphia, Pennsylvania 19103
                    Telecopy:  (215) 977-6878

          8.3 Entire Agreement. This Agreement constitutes the entire agreement
of the Parties relating to the matters contained herein, superseding all prior
contracts or agreements, whether oral or written, relating to the matters
contained herein.

          8.4 Termination of Article II. The provisions of Article II of this
Agreement may be terminated by Sunoco upon a Change of Control of Sunoco.

          8.5 Amendment or Modification. This Agreement may be amended or
modified from time to time only by the written agreement of all the Parties
hereto; provided, however, that the Partnership may not, without the prior
approval of the Conflicts Committee, agree to any amendment or modification of
this Agreement that, in the reasonable discretion of the General Partner, will
adversely affect the holders of Common Units. Each such instrument shall be
reduced to writing and shall be designated on its face an "Amendment" or an
"Addendum" to this Agreement.

          8.6 Assignment. No Party shall have the right to assign its rights or
obligations under this Agreement without the consent of the other Parties
hereto.

          8.7 Counterparts. This Agreement may be executed in any number of
counterparts with the same effect as if all signatory parties had signed the
same document. All counterparts shall be construed together and shall constitute
one and the same instrument.

          8.8 Severability. If any provision of this Agreement shall be held
invalid or unenforceable by a court or regulatory body of competent
jurisdiction, the remainder of this Agreement shall remain in full force and
effect.

          8.9 Further Assurances. In connection with this Agreement and all
transactions contemplated by this Agreement, each signatory party hereto agrees
to execute and deliver such additional documents and instruments and to perform
such additional acts as may be necessary or appropriate to effectuate, carry out
and perform all of the terms, provisions and conditions of this Agreement and
all such transactions.

          8.10 Rights of Limited Partners. The provisions of this Agreement are
enforceable solely by the Parties to this Agreement, and no Limited Partner of
the Partnership shall have the right, separate and apart from the Partnership,
to enforce any provision of this

                                       20

<PAGE>

Agreement or to compel any Party to this Agreement to comply with the terms of
this Agreement.

                                       21

<PAGE>

     IN WITNESS WHEREOF, the Parties have executed this Agreement on, and
effective as of, the Closing Date.

                                    SUNOCO, INC.

                                    By:  /s/  Thomas W. Hofmann
                                       -----------------------------------------
                                       Name:  Thomas W. Hofmann
                                            ------------------------------------
                                       Title: Senior Vice President And
                                             -----------------------------------
                                              Chief Financial Officer
                                             -----------------------------------

                                    SUNOCO, INC. (R&M)

                                    By:  /S/  Thomas W. Hofmann
                                       -----------------------------------------
                                       Name:  Thomas W. Hofmann
                                            ------------------------------------
                                       Title: Senior Vice President and
                                             -----------------------------------
                                              Chief Financial Officer
                                             -----------------------------------

                                    SUN PIPE LINE COMPANY OF DELAWARE

                                    By:  /s/  David A. Justin
                                       -----------------------------------------
                                       Name:  David A. Justin
                                            ------------------------------------
                                       Title: President
                                             -----------------------------------

                                    ATLANTIC PETROLEUM CORPORATION

                                    By:  /s/  Barry H. Roseberg
                                       ---------------------------------------
                                       Name:  Barry H. Roseberg
                                            ----------------------------------
                                       Title: President
                                             ---------------------------------

                                    SUNOCO TEXAS PIPE LINE COMPANY

                                    By:  /s/  David A. Justin
                                       -----------------------------------------
                                       Name:  David A. Justin
                                            ------------------------------------
                                       Title: Vice President
                                             -----------------------------------

                                       22

<PAGE>

                                    SUN PIPE LINE SERVICES (OUT) LLC

                                    By:  /s/  Deborah M. Fretz
                                       -----------------------------------------
                                       Name:  Deborah M. Fretz
                                            ------------------------------------
                                       Title: President
                                             -----------------------------------

                                    SUNOCO LOGISTICS PARTNERS L.P.

                                    By: Sunoco Partners LLC, its general partner

                                        By:  /s/  David A. Justin
                                           -------------------------------------
                                           Name:  David A. Justin
                                                --------------------------------
                                           Title: Vice President
                                                 -------------------------------

                                    SUNOCO LOGISTICS PARTNERS
                                    OPERATIONS L.P.

                                    By: Sunoco Logistics Partners GP LLC, its
                                        general partner

                                        By:  /s/  David A. Justin
                                           -------------------------------------
                                           Name:  David A. Justin
                                                --------------------------------
                                           Title: Vice President
                                                 -------------------------------

                                    SUNOCO PARTNERS LLC

                                    By:  /s/  David A. Justin
                                       -----------------------------------------
                                       Name:  David A. Justin
                                            ------------------------------------
                                       Title: Vice President
                                             -----------------------------------

                                       23

<PAGE>

                                   SCHEDULE I

Tanks and Pipelines located at Darby Creek Tank Farm and Marcus Hook Tank Farm:

Darby Creek Tank Farm:

1. Twenty-one active tanks and seven out of service tanks with a total capacity
of 3.050 million barrels.

Marcus Hook Tank Farm:

1.   Seventeen tanks with a total capacity of 2,057,722 barrels.

2.   The following pipeline connections:

     a.   Twin Oaks refined product terminal.

     b.   Twin Oaks to Newark 14" pipeline.

     c.   Twin Oaks to Montello 8" pipeline.

     d.   Twin Oaks to Buckeye's Laurel pipeline.

                                 Schedule I - 1

<PAGE>

                                   SCHEDULE II

<TABLE>
<CAPTION>
Option Assets                                                                     Option Asset Owner
-------------                                                                     ------------------
<S>                                                                                 <C>
(i)      Mid-Valley  Pipeline.  A 55% interest in Mid-Valley  Pipeline                  Sun Delaware
         Company (50% voting interest). Mid-Valley Pipeline Company owns and
         operates a 994-mile crude oil pipeline from Longview, Texas to
         Samaria, Michigan.

(ii)     West Texas Gulf  Pipeline.  A 17% interest in West Texas Gulf                     Sun Texas
         Pipeline  Company.  West Texas Gulf Pipeline Company owns and
         operates a 581-mile  crude oil pipeline from  Colorado  City,
         Texas and Nederland, Texas to Longview, Texas.

(iii)    Mesa   Pipeline.   An  undivided  6%  interest  in  the  Mesa              Services Out LLC
         pipeline,  an 80-mile crude oil pipeline from Midland,  Texas
         to Colorado City, Texas.

(iv)     Inland   Pipeline.   A  10%   interest   in  Inland.   Inland                     Sun Texas
         Corporation  owns and  operates a  611-mile refined  products
         pipeline  from Lima and  Toledo,  Ohio to Canton,  Cleveland,
         Columbus and Dayton, Ohio.

(v)      Icedale   Pipeline.   The  idled  370-mile,   6-inch  refined                     Sun Texas
         product  pipeline  from Icedale,  Pennsylvania  to Cleveland,
         Ohio.
</TABLE>

                                 Schedule II - 1

<PAGE>

                                  SCHEDULE III

   Sunoco's and Partnership's Respective Share of Liability under Section 3.2
 for Covered Environmental Losses Arising more than 21 Years after the Closing
                                      Date

<TABLE>
<CAPTION>
Year Following the Closing Date
     during which Covered         Sunoco's Respective Share
  Environmental Loss is First         of Liability under      Partnership's Respective Share
           Asserted                      Section 3.2          of Liability under Section 3.2
-------------------------------   -------------------------   ------------------------------
<S>                                         <C>                           <C>
During years 1 through
and including year 21                       100%                            0%

During year 22                               90%                           10%

During year 23                               80%                           20%

During year 24                               70%                           30%

During year 25                               60%                           40%

During year 26                               50%                           50%

During year 27                               40%                           60%

During year 28                               30%                           70%

During year 29                               20%                           80%

During year 30                               10%                           90%

After year 30                                 0%                          100%
</TABLE>

                                Schedule III - 1

<PAGE>

                                 Schedule IV - 5

                                   SCHEDULE IV

Pending Litigation

PIPELINE AND CRUDE TRUCKING LITIGATION
--------------------------------------

1.   USA v. NCH Corporation, et. al. v. Sunoco, et al.

2.   Creek County Oil (JADCO) v. Mid-Continent Pipe Line Company

3.   Margolis, David v. Sun Pipe Line Company

4.   In Re: Explorer Pipeline Company

5.   Bono v. Sun Pipe Line Company

6.   PECO v. Sun Pipe Line Company

7.   Tina Wall and Christopher DeLeur v. Sunoco, Inc. and Sun Pipe Line Company

8.   Badertscher v. Mid-Continent Pipe Line Company

9.   Collins v. Mid-Continent Pipe Line Company

10.  Denman v. Sun Oil Company

11.  Harkless v. Atlantic Pipeline

12.  Sun Pipe Line Company v. Bavarian Pretzel

13.  Lowe v. Sun Pipe Line Company

14.  Pasch, Sharon v. Sun Pipe Line Company

15.  Wileman Farms v. Mid-Continent Pipe Line Company

16.  Sun Pipe Line Company v. Gary Slagel, et al.

17.  Sun Pipe Line Company v. Hagaman

18.  Mid-Continent Pipe Line Company and Total Petroleum v. Duncan Petroleum

19.  Township of Washington v. Sun Pipe Line Company

20.  Delacruz v. Sun Pipe Line Company

21.  SPL v. Theta Land Corp.

22.  City of Troy v. Theurer and SPL

                                 Schedule IV - 1

<PAGE>

23.  American Asphalt Paving Co. v. SPL

24.  Pezda v. Sullivan

25.  Butler V. Explorer Pipeline, et al. (Explorer) (District Court, Hunt
     County, Texas)

26.  Steuben Contracting v. Griffith Oil, Gulf and Sun

27.  Sun Pipeline Company v. Transco Damage Claim (Harbor)

28.  Deaton v. Sun Pipe Line Company

29.  Carter v. Sun Pipe Line Company

30.  Howard v. Sunoco (Crude Trucking)

31.  Sun Pipe Line Company v. M/T Wapello and Mobil Shipping

32.  Sun Pipe Line Company v. M/T Wenatchi and Mobil Shipping

33.  Sun Pipe Line Company v. Ligouri

34.  Cudd Pressure Controls v. Sun Pipe Line Company

35.  Macomb County Road Commission v. Sun Pipe Line Company

36.  Moss v. Sun Pipe Line Company

37.  Sun Pipe Line Company v. Hicks

38.  Matherly v. City of Cushing

39.  McMullen v. Lehigh Gas

40.  Sun Pipe Line Company v. Wal-Mart

41.  General Technology Applications, Inc. v. ARCO, et al.

42.  State of Oklahoma v. Mid-Continent Pipeline Company

TOXIC TORT LITIGATION
---------------------

1.   Aguirre, Arturo, et al. v. Air Liquide America Corporation, et al.

2.   Aguillard, Paul, et al. v. Owens-Corning

3.   Babbs, Kenneth - Tolling

                                 Schedule IV - 2

<PAGE>

4.   Barker, Terry - Tolling

5.   Bellow, Avie D. Jr., et al. v. Owens-Corning

6.   Bentley, Joseph L., et al. v. A.M.F., Inc.

7.   Bible, James Roy, et al. v. Armstrong

8.   Biziak, Joseph - Tolling

9.   Bouley, Daniel, et al. v. Owens-Corning

10.  Brignac, Eva, et al. v. AcandS, Inc.

11.  Brown, Ernest - Tolling

12.  Brunley, Walter v. A.M.F., Inc., et al.

13.  Cason, Nadine, et al. v. AC&S, Inc.

14.  Cassell, Donald B., et al. v. A.M.F., Inc.

15.  Chandler, Lee - Tolling

16.  Clamon, Jerry Lynn, et al. v. Owens-Corning, et al.

17.  Collings, William, et al. v. B. F. Goodrich, et al.

18.  Conway, Robert, et al. v. Owens-Corning

19.  Cotton, William L., et al. v. A. P. Green

20.  Credeur, Elwood J., et al. v. AC&S

21.  Dailey, Earl - Tolling

22.  Deforest, Albert A. Tolling

23.  Devine, Isaac N., et al. v. O.C.

24.  Dixon, Robert E. and Lanora - Tolling

25.  Dunham, Dennis C., et al. v. A.M.F., Inc.

26.  Elzy, Ralph Murriel, et al. v. A.M.F.

27.  Faulk, Larry, et al. v. Owens-Corning, et al.

28.  Ford, Abram - Tolling

                                 Schedule IV - 3

<PAGE>

29.  Green, Clyde A. - Tolling

30.  Gustafson, John Goran, et al. v. A.M.F.

31.  Hemmenway, Travis, et al. v. PC, et al.

32.  Hunter, Edgar Thomas, et al. v. Owens-Corning

33.  Jones, Hillery, et al. v. Owens-Corning, et al.

34.  Katz, Stanley v. Owens-Corning, et al.

35.  Kennerson, Charles Henry, et al. v. Brown & Root

36.  Kindred, Roy Glen, et al. v. A.M.F., Inc.

37.  King, Douglas, et al. v. E. I. Dupont, et al.

38.  Koonce, Joel D. - Tolling

39.  Lotfis, Nathan - Tolling

40.  Longoria, David L. - Tolling

41.  Madden, Danny, et al. v. A.M.F.

42.  Marks, Elsie F., et al. v. Atofina, et al.

43.  McAnally, Jerry, et al. v. O.C.

44.  Music, Frankie - Tolling

45.  Otto, David J. - Tolling

46.  Peek, Johnny G. - Tolling

47.  Perkins, Russell J. v. Able Supply

48.  Richardson, Leeanna Ind. as Rep. of Estate of Calvin Dwayne Richard

49.  Scarborough, Walter Ray, et al. v. AC&S

50.  Shankle, Eugene, et al. v. AC&S

51.  Shomo, Millard Fillmore v. AC&S

52.  Simieou, Raymond, et al. v. Owens-Corning

53.  Spruiell, Dewey Lee, et al. v. AC&S, et al.

                                 Schedule IV - 4

<PAGE>

54.  Twist, Glenn E. - Tolling

55.  Vallee, Herschel, et al. v. A.M.F., Inc., et al.

56.  Vanouwerkerk, Anita v. Owens-Corning

57.  Woodcock v. Sun Pipe Line

LEASE CRUDE OIL ACQUISITION
---------------------------

1.   McMahon v. Amerada Hess et al MDL 1206 (U.S. District Court, Southern
     District of Texas)

2.   Rushing v. Yandell

3.   Grunewald v. Sunoco, Inc.

4.   Sheppard v. Bancorpsouth, et al.

5.   Patricia Love Stevens v. Frank Cass d/b/a Cass Oil Company

EEO AND LABOR PROCEEDINGS AND CASES
-----------------------------------

1.   Allen Zimmerman

2.   Arlene Lee

3.   James Carmichael

4.   DeWayne Ketchum

5.   Marlyn Hoops and Joseph Stewart

                                 Schedule IV - 5

<PAGE>

                                   SCHEDULE V

General and Administrative Services

     General and Administrative Services provided by the following divisions of
the General Partner and its Affiliates:

     (1) systems administration,

     (2) administrative division (which includes human resources, safety and
environmental),

     (3) finance division (which includes planning, accounts payable, and
accounting),

     (4) credit division,

     (5) legal division,

     (6) insurance division (which includes insurance administration and
insurance claims investigation, but does not include payment of premiums or the
allocated cost thereof),

     (7) engineering division (which includes engineering design and
purchasing),

     (8) payroll division,

     (9) tax division, and

     (10) internal audit division.

                                 Schedule V - 1

<PAGE>

                                   SCHEDULE VI

Tanks Maintenance and Inspection Projects to be completed by Sunoco R&M at Darby
Creek Tank Farm.

Darby Creek Tank Farm:

     Sunoco R&M will perform all inspection, maintenance and repair services
necessary to return the seven out of service tanks at Darby Creek Tank Farm to
service.

                                 Schedule VI - 1

<PAGE>

                                  SCHEDULE VII

Exton Facility Property Discription.

A parcel of property containing 1.38 acres, being described as all that certain
parcel of ground on the north side of U.S. Route 30, west of Old Ship Road,
situate in West Whiteland Township, Chester County, Pennsylvania, being shown on
a boundary survey plan prepared by Ludgate Engineering Corporation, Plan No.
D-7703001, and being more fully bounded and described as follows TO WIT:

     BEGINNING at a point in the center of U.S. Route 30 and a corner of
     Atlantic Richfield Company; thence in the center line of U.S. Route 30
     North 87 degrees 45 minutes 35 seconds West 494.33 feet to a point; thence
     leaving the center line of U.S. Route 30 North 02 degrees 14 minutes 25
     seconds East 55.16 feet to a point being a corner of a fence within the
     property of Sunoco Exton Terminal; thence along the existing fence and
     within property of Sunoco Exton Terminal the five following courses and
     distances:

          (1)  North 63 degrees 22 minutes 09 seconds East 123.42 feet to a
               point.
          (2)  North 02 degrees 30 minutes 56 seconds East 62.25 feet to a
               point.
          (3)  South 87 degrees 42 minutes 07 seconds East 200.11 feet to a
               point.
          (4)  South 02 degrees 21 minutes 29 seconds West 62.99 feet to a
               point.
          (5)  South 69 degrees 49 minutes 21 seconds East 194.28 feet to a
               point in the line of lands of Atlantic Richfield Company.

thence along Atlantic Richfield Company and in the pavement of U.S. Route 30
South 01 degree 01 minute 58 seconds West 54.00 feet to a point, the Place of
Beginning.

                                Schedule VII - 1

<PAGE>

                                  SCHEDULE VIII

Exton Terminal Site Property Description.

ALL THAT CERTAIN tract or piece of land with the buildings and improvements
thereon erected, situate in the Township of West Whiteland, County of Chester,
State of Pennsylvania, bounded and described in accordance with the survey and
plan thereof made by Ludgate Engineering Corporation Plan Number D-7703001 dated
11-06-01 being more fully bounded and described as follows to WIT:

BEGINNING at a point in the center of U.S.Route 30 and in line of lands of MARIS
Inc. C/O REILLY OIL, North 17 degrees 42 minutes 01 seconds West 458.96 feet to
a point in the centerline of the Philadelphia and Reading Railway, Chester
Valley Branch; thence along center of said Railway North 72 degrees 27 minutes
02 seconds East 1119.03 feet to a point in the centerline of Old Ship Road
thence in and along the centerline of Old Ship Road South 19 degrees 49 minutes
58 seconds East 580.32 feet to a point a corner of lands of Atlantic Richfield
Company thence along lands of Atlantic Richfield Company the two following
courses and distances:

     1. South 75 degrees 01 minutes 28 seconds West 217.61 feet to a point
     2. South 01 degrees 01 minutes 58 seconds West 208.16 feet to a point in
the pavement of U.S. Route 30.
thence in and along the centerline of U.S. Route 30 North 87 degrees 45 minutes
35 seconds West 911.03 feet to a point the Place Of Beginning Containing 15.82
Acres

Being the same property conveyed in Deed dated September 6, 1985 from Atlantic
Richfield Company to Atlantic Refining & Marketing Corp., and recorded in Deed
Book 100, page 462.

                                Schedule VIII - 1

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