Document:

Long-Term Incentive Plan

 Exhibit 10.1 

 
  

 
 SUNOCO PARTNERS LLC

 LONG-TERM INCENTIVE PLAN 
 Amended and restated as of April 25, 2011 
  

 
  

 SUNOCO PARTNERS LLC 

LONG-TERM INCENTIVE PLAN 

SECTION 1. Purpose of the Plan. 
 The Sunoco Partners LLC Long-Term Incentive Plan (the “Plan”) is intended to promote the interests of Sunoco Logistics Partners L.P., a Delaware limited partnership (the
“Partnership”), by providing employees and directors of Sunoco Partners LLC, a Pennsylvania limited liability company, (the “Company”) and its Affiliates, who perform services for the Partnership and its subsidiaries, incentive
awards for superior performance. The Plan is also intended to enhance the ability of the Company and its Affiliates to attract and retain employees whose services are key to the growth and profitability of the Partnership, and to encourage them to
devote their best efforts to the business of the Partnership, thereby advancing the Partnership’s interests. 
 SECTION 2. Definitions.

 As used in the Plan, the following terms shall have the meanings set forth below: 

2.1 “Affiliate” means, with respect to any Person, any other Person that directly or indirectly, through one or more
intermediaries, controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 
 2.2
“Award” means a grant of one or more Options or Restricted Units pursuant to the Plan, and shall include any tandem DERs granted with respect to such Award. 
 2.3 “Board” means the Board of Directors of the Company. 
 2.4
“Cash Units” shall have the meaning assigned to such term in Section 6.4 hereof. 
 2.5 “Cause”
means: 
 (i) fraud or embezzlement on the part of the Participant; 

(ii) conviction of or the entry of a plea of nolo contendere by the Participant to any felony; 

(iii) the willful and continued failure or refusal by the Participant to perform substantially the Participant’s
duties with the Company or an Affiliate thereof (other than any such failure resulting from incapacity due to physical or mental illness, or death, or following notice of employment termination by the Participant for Good Reason) within thirty
(30) days following the delivery of a written demand for substantial performance to the Participant by the Board, or any employee of the Company or an Affiliate with supervisory authority over the Participant, that specifically identifies the
manner in which the Board or such supervising employee believes that the Participant has not substantially performed the Participant’s duties; or 
 (iv) any act of willful misconduct by the Participant which: 
 (a)
is intended to result in substantial personal enrichment of the Participant at the expense of the Partnership, the Company, or any of their Affiliates; or 
 (b) has a material adverse impact on the business or reputation of the Partnership, the Company, or any Affiliate thereof (such determination to be made by the Partnership, the Company or any such
Affiliate in the good faith exercise of its reasonable judgment). 

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

(ii) a “Change in Control” of Sunoco, Inc., as defined from time to time in the Sunoco, Inc. stock plans; or

 (iii) the general partner (whether the Company or any other Person) of the Partnership ceases to be an
Affiliate of Sunoco, Inc. 
 2.7 “Code” shall have the meaning assigned to such term in Section 6.4
hereof. 
 2.8 “Committee” means the Compensation Committee of the Board, such subcommittee thereof, or such
other committee of the Board as may be appointed from time to time to administer the Plan. 
 2.9 “Company”
shall have the meaning assigned to such term in the preamble. 
 2.10 “DER” or “Distribution Equivalent
Right” means the contingent right, granted in tandem with a specific Restricted Unit, to receive an amount in cash equal to the cash distributions made by the Partnership with respect to a Unit during the period such Restricted Unit is
outstanding. 
 2.11 “Director” means a member of the Board who is not an Employee. 

2.12 “Eligible Recipient” shall have the meaning assigned to such term in Section 5 hereof. 

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

2.14 “Employment Termination Date” shall have the meaning assigned such term in Section 6.4 hereof. 

2.15 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

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

2.20 “Partnership” shall have the meaning assigned to such term in the preamble. 

2.21 “Person” means an individual or a corporation, limited liability company, partnership, joint venture, trust,
unincorporated organization, association, government agency or political subdivision thereof or other entity. 
 2.22
“Plan” shall have the meaning assigned to such term in the preamble. 
 2.23 “Qualifying
Termination” means, with respect to the employment of a Participant, any of the following: 

 (a) a termination of employment by the Company or one of its Affiliates
within two (2) years after a Change of Control, other than for Cause, death or disability; or 
 (b) a
termination of employment by the Participant within two (2) years after a Change of Control for one or more of the following reasons: 
 (1) the material reduction of the Participant’s authorities, duties, or responsibilities as an executive officer and/or officer of the Company or one of its Affiliates from those in effect as of
ninety (90) calendar days prior to a Change in Control, other than (i) an insubstantial reduction, or (ii) an inadvertent reduction that is remedied by the Company or one of its Affiliates promptly after receipt of notice thereof
given by the Participant; provided, however, that any reduction in the foregoing resulting from the acquisition of the Company or one of its Affiliates and its existence as a subsidiary or division of another entity shall not be sufficient to
constitute a Qualifying Termination; or 
 (2) with respect to any Participant who is a member of the
Company’s board of directors immediately prior to the Change of Control, any failure of the members of the Company to elect or re-elect, or of the Company to appoint or re-appoint, the Participant as a member of such board of directors;

 (3) a reduction by the Company or one of its Affiliates, in either the Participant’s annual base salary
or guideline (target) bonus as in effect immediately prior to the Change of Control; or 
 (4) the failure of the
Company or one of its Affiliates to provide the Participant with employee benefits and incentive compensation opportunities that: 
 (i) are not less favorable than those provided to other executives who occupy the same grade level at the Company or one of its Affiliates, as the Participant, or if the grade levels of the Company or its
Affiliates are no longer applicable, to a similar peer group of the executives of the Company; and 
 (ii)
provide the Participant with benefits that are at least as favorable, measured separately for: 
 (A) incentive
compensation opportunities, 
 (B) savings and retirement benefits, 

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

 (c) before a Change of Control, a termination of employment by the Company,
or one of its Affiliates, other than a termination for Cause, or a termination of employment by the Participant for one of the reasons set forth in (b) above, if the affected Participant can demonstrate that such termination or circumstance in
(b) above leading to the termination: 
 (1) was at the request of a third party with which the Company had entered into
negotiations or an agreement with regard to a Change of Control; or 
 (2) otherwise occurred in connection with a Change of
Control; 
 provided, however, that in either such case, a Change of Control actually occurs within one (1) year
following the Employment Termination Date. 
 Any good faith determination made by the Participant that the Participant has experienced a
Qualifying Termination pursuant to Section 2.23(b) shall be conclusive. A Participant’s mental or physical incapacity following the occurrence of an event described above in (b) above shall not affect the Participant’s ability to
have a Qualifying Termination. As used in this Section 2.23, a “termination of employment” means a separation from service as defined in Code Section 409A and the regulations issued thereunder. 

2.24 “Restricted Period” means the period established by the Committee with respect to an Award during which the Award
either remains subject to forfeiture or is not exercisable by the Participant. 
 2.25 “Restricted Unit” means
a phantom, or notional, unit granted under the Plan which is equivalent in value and in distribution rights to a Unit and which, upon vesting, entitles the Participant to receive a Unit or its Fair Market Value in cash, as determined in the sole
discretion of the Committee. 
 2.26 “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange
Act, or any successor rule or regulation thereto as in effect from time to time. 
 2.27 “SEC” means the
Securities and Exchange Commission, or any successor thereto. 
 2.28 “Specified Employee” shall mean each of
the following: the Chief Executive Officer; the President and Chief Operating Officer; the Chief Financial Officer; the Vice President, Operations; the Vice President, Business Development; the Vice President, Lease Acquisition and Marketing; the
Vice President, General Counsel and Secretary; the Vice President, Human Resources and Administration; the Chief Information Officer; the Treasurer; and the Controller (designated pursuant to the election of an alternative method specified in
Treasury Regulation Sections 1.409A-1(i)(5) and 1.409A-1(i)(8)). 
 2.29 “Sunoco” shall mean and refer to
Sunoco, Inc., a Pennsylvania corporation. 
 2.30 “Termination of Employment” shall have the meaning assigned
to such term in Section 6.4 hereof. 
 2.31 “Unit” means a common unit of the Partnership. 

SECTION 3. Administration. 
 The Plan shall be administered by the Committee. Annual grant levels for Participants will be recommended to the Committee by the Chief Executive Officer. Subject to the terms of the Plan and applicable
law, and in addition to other express powers and authorizations conferred on the Committee by the Plan, the Committee shall have full power and authority to: 
 (i) designate Participants; 
 (ii) determine the type or types of
Awards to be granted to a Participant; 
 (iii) determine the number of Units to be covered by Awards;

 (iv) determine the terms and conditions of any Award; 

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

Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with
respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive, and binding upon all Persons, including the Company, the Partnership, any Affiliate, any Participant, and
any beneficiary of any Award. 
 Subject to the following and any applicable law, the Committee, in its sole discretion, may
delegate any or all of its powers and duties under the Plan to the Chief Executive Officer of the Company, including the power to grant Awards under the Plan, provided the Chief Executive Officer is also a member of the Board, subject to such
limitations on such delegated powers and duties as the Committee may impose, if any. Upon any such delegation all references in the Plan to the “Committee”, other than in Section 7 (“Amendment and Termination”), shall be
deemed to include the Chief Executive Officer; provided, however, that such delegation shall not limit the Chief Executive Officer’s right to receive Awards under the Plan. Notwithstanding the foregoing, the Chief Executive Officer may not
grant Awards to, or take any action with respect to any Award previously granted to, a person who is an officer subject to Rule 16b-3 or a member of the Board. 
 SECTION 4. Units Available for Awards. 
 4.1 Units Available. Subject
to adjustment as provided in Section 4.3 and this Section 4.1, the number of Units with respect to which Awards may be granted under the Plan is one million two hundred fifty thousand (1,250,000). If any Award is forfeited or otherwise
terminates or is canceled without the delivery of Units, then the Units covered by such Award, to the extent of such forfeiture, termination, or cancellation, shall again be Units with respect to which Awards may be granted. 

4.2 Sources of Units Deliverable Under Awards. Any Units delivered pursuant to an Award shall consist, in whole or in part, of
Units acquired in the open market, from any Affiliate, the Partnership or any other Person, or any combination of the foregoing, as determined by the Committee in its discretion. 

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

 (ii) the number and type of Units (or other securities or property) subject
to outstanding Awards; 
 (iii) the purchase price per Unit purchasable under outstanding Options; 

(iv) the number of Restricted Units outstanding; and 

(v) other similar matters. 
 SECTION 5. Eligibility. 
 Persons who are eligible to be designated as a
Participant and receive an Award under the Plan are (i) any Employee of the Company or one of its Affiliates who perform services for the benefit of the Partnership and/or one or more of its subsidiaries and (ii) any Director of the
Company (each, an “Eligible Recipient”). 
 SECTION 6. Awards. 

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

(ii) Time and Method of Exercise. The Committee shall determine the Restricted Period, i.e., the time or times at
which an Option may be exercised in whole or in part, and the method or methods by which payment of the exercise price with respect thereto may be made or deemed to have been made which may include, without limitation, cash, check acceptable to the
Company, a “cashless-broker” exercise (through procedures approved by the Company), other securities or other property, a note from the Participant (in a form acceptable to the Company), or any combination thereof, having a Fair Market
Value on the exercise date equal to the relevant exercise price. 
 (iii) Forfeiture. Except as otherwise
provided in the terms of the Option grant, upon termination of a Participant’s employment with the Company or one of its Affiliates, or termination of a Participant’s membership on the Board, whichever is applicable, for any reason (other
than retirement, death, permanent disability, approved leave of absence, during the applicable Restricted Period, all Options shall be forfeited by the Participant, unless otherwise provided in a written employment agreement (if any) between the
Participant and the Company or one or more of its Affiliates; provided, however, that the Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant’s Options; and provided, that a
Participant who is eligible to receive payment of retirement benefits under the Sunoco, Inc. Retirement Plan, and who terminates voluntarily his or her employment with the Company, or one of its Affiliates, during the applicable Restricted Period,
shall not forfeit any of his then-outstanding Options, and such Participant shall be treated as though he or she had, in fact, retired during the applicable Restricted Period. 

 6.2 Restricted Units. The Committee shall have the authority to determine the
Eligible Recipients to whom Restricted Units shall be granted, the number of Restricted Units to be granted to each such Eligible Recipient, the duration of the Restricted Period, the conditions under which the Restricted Units may become vested or
forfeited, and such other terms and conditions as the Committee may establish respecting such Awards, including whether DERs are granted with respect to such Restricted Units. The Committee may establish, at the time of the grant of Restricted
Units, other conditions that must be met for payout to occur. These conditions shall be set forth in the Committee’s resolution granting the Restricted Units and in the applicable agreements with Participants. 

(i) DERs. To the extent provided by the Committee, in its discretion, a grant of Restricted Units may include a
tandem DER grant, which may provide that such DERs shall be paid directly to the Participant, be credited to a bookkeeping account (with or without interest in the discretion of the Committee) subject to the same restrictions as the tandem Award, or
be subject to such other provisions or restrictions as determined by the Committee in its discretion. Notwithstanding the foregoing, payment of all DERs under a tandem DER grant made pursuant to this Section 6.2(i) shall be made within two and
one-half (2-1/2) months following the calendar year in which such DERs become non-forfeitable. 
 (ii)
Forfeiture. Except as otherwise provided in the terms of the Award agreement, upon termination of a Participant’s employment with the Company, or one of its Affiliates, or termination of a Participant’s membership on the Board,
whichever is applicable, for any reason (other than retirement, death, permanent disability, or approved leave of absence, during the applicable Restricted Period, all Restricted Units shall be forfeited by the Participant, unless otherwise provided
in a written employment agreement (if any) between the Participant and the Company or one or more of its Affiliates; provided, however, that the Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a
Participant’s Restricted Units; and further provided, that a Participant who is eligible to receive payment of retirement benefits under the Sunoco, Inc. Retirement Plan, and who terminates voluntarily his or her employment with the
Company during the applicable Restricted Period, shall not forfeit any of his then-outstanding Restricted Units, and such Participant shall be treated as though he or she had, in fact, retired during the applicable Restricted Period. 

(iii) Lapse of Restrictions. Upon, or as soon as reasonably practicable following, the vesting of each Restricted
Unit, but within two and one-half (2-1/2) months following the calendar year in which such Restricted Unit becomes non-forfeitable, the Participant shall be entitled to receive from the Company, and the Company shall pay to the Participant, one Unit
or its Fair Market Value, in cash, as determined by the Committee, subject to the provisions of Section 8.2. 
 6.3
General. 
 (i) Awards May Be Granted Separately or Together. Awards may, in the discretion of the
Committee, be granted either alone or in addition to, in tandem with, or in substitution for any other Award granted under the Plan or any award granted under any other plan of the Company or any Affiliate. Awards granted in addition to or in tandem
with other Awards or awards granted under any other plan of the Company or any Affiliate may be granted either at the same time as or at a different time from the grant of such other Awards or awards. 

(ii) Limits on Transfer of Awards. 

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

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

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

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

 (iv) Unit Certificates. All certificates for Units or other securities of the Partnership delivered
under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the SEC, any
stock exchange upon which such Units or other securities are then listed, and any applicable federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such
restrictions. 
 (v) Consideration for Grants. Awards may be granted for such consideration as the
Committee determines including, without limitation, services or such minimal cash consideration as may be required by applicable law. 
 (vi) Delivery of Units or other Securities and Payment by Participant of Consideration. Notwithstanding anything in the Plan or any grant agreement to the contrary, delivery of Units pursuant to
the exercise or vesting of an Award may be deferred for any period during which, in the good faith determination of the Committee, the Company is not reasonably able to obtain Units to deliver pursuant to such Award without violating the rules or
regulations of any applicable law or securities exchange. No Units or other securities shall be delivered pursuant to any Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award agreement
(including, without limitation, any exercise price or any tax withholding) is received by the Company. Such payment may be made by such method or methods and in such form or forms as the Committee shall determine, including, without limitation,
cash, other Awards, withholding of Units, cashless broker exercises with immediate sale, or any combination thereof; provided, however, that the combined value, as determined by the Committee, of all cash and cash equivalents and the Fair Market
Value of any such Units or other property so tendered to the Company, as of the date of such tender, is at least equal to the full amount required to be paid to the Company pursuant to the Plan or the applicable Award agreement. 

(vii) Change of Control. 
 (a) Payment of Restricted Units. In the event of a Qualifying Termination, Restricted Units will be paid to the Participant no later than the earlier of ninety (90) days following the date of
occurrence of such Qualifying Termination or two and one-half (2-1/2) months following the end of the calendar year in which occurs the date of such Qualifying Termination, regardless of whether the applicable performance goals or targets have been
met. 
 For a Qualifying Termination occurring within the first consecutive twelve-month period following
the date of grant, the number of performance-based Restricted Units paid out with regard to such grant shall be equal to the total number of Restricted Units outstanding in such grant as of the Qualifying Termination, not adjusted for any
performance factors. 
 For a Qualifying Termination occurring after the first consecutive twelve-month
period following the date of grant, the number of performance-based Restricted Units paid out with regard to such grant shall be the greater of: 

 (a) the total number of Restricted Units outstanding in such grant as of the
Qualifying Termination, not adjusted for any performance factors, or 
 (b) the total number of such Restricted
Units outstanding in such grant, multiplied by the applicable performance factors related to the Partnership’s actual performance immediately prior to the Qualifying Termination. 

In the case of an award of Restricted Units conditioned upon the Participant’s continued employment, the total number
of Restricted Units outstanding in such grant as of the Qualifying Termination shall be paid to the Participant. 

The Participant’s Restricted Units shall be payable to the Participant in cash or Units, as determined by the
Committee, as follows: 
 (a) if the Participant is to receive Units, the Participant will receive the total
number of Units stated above in this Section 6.3(vii); or 
 (b) if the Participant is to receive cash, the
Participant will be paid an amount in cash equal to the number of Units stated above in this Section 6.3(vii), multiplied by the Fair Market Value per Unit. Such amount will be reduced by the applicable federal, state and local withholding
taxes due. 
 (b) Payment of Distribution Equivalents. On or before the earlier of the ninetieth
(90th) day following the date of occurrence of such Qualifying Termination or the day that is two and one-half (2-1/2) months following the end of the calendar year in which occurs the date of such Qualifying Termination, the Participant will
be paid an amount in cash equal to the value of the applicable DERs on the number of Units being paid pursuant to this Section 6.3(vii) for the time period immediately preceding the Qualifying Termination. 

(c) Options. Notwithstanding any provisions to the contrary in agreements evidencing Options granted thereunder, or
in this Plan, each outstanding Option shall become immediately and fully exercisable upon the occurrence of any Qualifying Termination. 
 6.4 Payment of Restricted Units on Termination of Employment. For purposes of this Section 6, termination of a Participant’s employment, and any and all other references to a
Participant’s employment being terminated (“Termination of Employment”), shall mean with respect to a Participant such Participant’s separation from service as defined in Internal Revenue Code (“Code”) Section 409A
and the regulations issued thereunder, from the Company or one of its Affiliates, and a Participant’s “Employment Termination Date” shall mean the date that a Participant separates from service as defined in Code Section 409A and
the regulations issued thereunder. Participants who are separated from service from the Company for the purpose of transferring employment to Sunoco, and Participants who are separated from service from Sunoco for the purpose of transferring
employment to the Company, shall not be eligible for payment of Restricted Units (and related DERs) upon such transfer of employment. 

Notwithstanding any other provisions of this Section 6, payment of any Restricted Units (and related DERs) to a Participant, who is a Specified
Employee, on account of such Participant’s Termination of Employment shall be made as follows: (i) Restricted Units scheduled to be paid for the period beginning on such Participant’s Employment Termination Date and ending on the date
six months from such Employment Termination Date, shall not be paid as scheduled, but shall be accumulated and paid in a lump sum on the date six months after the Participant’s Employment Termination Date; (ii) In the case of payments thus
delayed pursuant to this Section 6.4, at the election of the Participant, all or a portion of a Participant’s Restricted Units may be converted to the cash equivalent Fair Market Value of such units (“Cash Units”), at the time of
a Participant’s Termination of Employment. Simple interest will be paid on Cash Units delayed hereunder from the date of such conversion to the date of actual payment, at a rate equal to the prime rate of Citibank, N.A. as in effect from time
to time after such due date; and (iii) With respect to any Restricted Units not converted to Cash Units, and which include a tandem DER, the provisions of Section 6.2(i) will continue to apply to such Restricted Units during the

 
period that payment of Restricted Units is delayed pursuant to this Section 6.4, with payment of all such DERs made at the time of payment of the associated Restricted Unit hereunder.

 SECTION 7. Amendment and Termination. 
 Except to the extent prohibited by applicable law and unless otherwise expressly provided in an Award agreement or in the Plan: 

(i) Amendments to the Plan. Except as required by applicable law or the rules of the principal securities exchange
on which the Units are traded and subject to Section 7(ii) below, the Board or the Committee may amend, alter, suspend, discontinue, or terminate the Plan in any manner; provided, however, that neither the Board nor the Committee may increase
the number of Units available for Awards under the Plan, without the express prior written consent of the Members of the Company. 
 (ii) Amendments to Awards. The Committee may waive any conditions or rights under, amend any terms of, or alter any Award theretofore granted, provided no change, other than pursuant to
Section 7(iii), in any Award shall materially reduce the benefit to Participant without the consent of such Participant. 
 (iii) Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. In order to prevent dilution or enlargement of the benefits or potential benefits intended to be made
available under the Plan, adjustments will be made in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4.3 of the
Plan) affecting the Partnership or the financial statements of the Partnership, or of changes in applicable laws, regulations, or accounting principles. 
 SECTION 8. General Provisions. 
 8.1 No Rights to
Awards. No Person shall have any claim to be granted any Award, and there is no obligation for uniformity of treatment of Participants. The terms and conditions of Awards need not be the same with respect to each Participant. 

8.2 Withholding. The Company or any Affiliate is authorized to withhold from any Award, from any payment due or
transfer made under any Award or from any compensation or other amount owing to a Participant the amount (in cash, Units, other securities, Units that otherwise would be issued pursuant to such Award or other property) of any applicable taxes
payable in respect of the grant of an Award, its exercise, the lapse of restrictions thereon, or any payment or transfer under an Award or under the Plan and to take such other action as may be necessary in the opinion of the Company to satisfy its
withholding obligations for the payment of such taxes. 
 8.3 No Right to Employment. The grant of an
Award shall not be construed as giving a Participant the right to be retained in the employment of the Partnership, the Company or any Affiliate thereof or to remain on the Board, as applicable. Further, the Partnership, the Company, or any
Affiliate thereof may at any time dismiss a Participant from employment, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan or in any Award agreement. 

8.4 Governing Law. THE VALIDITY, CONSTRUCTION, AND EFFECT OF THE PLAN AND ANY RULES AND REGULATIONS RELATING TO THE
PLAN SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA AND APPLICABLE FEDERAL LAW. 
 8.5 Severability. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify
the Plan or any Award under any law deemed applicable by the Committee, such 

 
provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially
altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect. 

8.6 Other Laws. The Committee may refuse to issue or transfer any Units or other consideration under an Award if,
in its sole discretion, it determines that the issuance or transfer of such Units or such other consideration might violate any applicable law or regulation, the rules of the principal securities exchange on which the Units are then traded, or
entitle the Partnership or an Affiliate to recover the entire then Fair Market Value thereof under Section 16(b) of the Exchange Act, and any payment tendered to the Company by a Participant, other holder or beneficiary in connection with the
exercise of such Award shall be promptly refunded to the relevant Participant, holder or beneficiary. 
 8.7
No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other Person. To
the extent that any Person acquires a right to receive payments from the Company or any Affiliate pursuant to an Award, such right shall be no greater than the right of any general unsecured creditor of the Company or any Affiliate. 

8.8 No Fractional Units. No fractional Units shall be issued or delivered pursuant to the Plan or any Award, and
the Committee shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Units or whether such fractional Units or any rights thereto shall be canceled, terminated, or otherwise
eliminated. 
 8.9 Headings. Headings are given to the Sections and subsections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. 

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

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

 Exhibit 10.2 

 
  

 
 SUNOCO PARTNERS LLC

 ANNUAL INCENTIVE PLAN 
 Amended and restated, effective as of April 25, 2011 
  

 
  

 SUNOCO PARTNERS LLC 

ANNUAL INCENTIVE PLAN 
 1. Definitions. As used in this Plan, the following terms shall have the meanings herein specified: 
 1.1 Affiliate - means, with respect to any entity, any other entity that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control
with, the entity in question. For purposes of this definition, “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity, whether through ownership of
voting securities, by contract or otherwise. 
 1.2 Board of Directors - means the Board of
Directors of the Company. 
 1.3 Cause - means: 

(a) fraud or embezzlement on the part of the Participant; 

(b) conviction of or the entry of a plea of nolo contendere by the Participant to any felony; 

(c) the willful and continued failure or refusal by the Participant to perform substantially the Participant’s duties
with the Company or an Affiliate thereof (other than any such failure resulting from incapacity due to physical or mental illness, or death, or following notice of employment termination by the Participant pursuant to subsections 1.6(c)(1), (2),
(3), (4) or (5)) within thirty (30) days following the delivery of a written demand for substantial performance to the Participant by the Board of Directors, or any employee of the Company or an Affiliate with supervisory authority
over the Participant, that specifically identifies the manner in which the Board of Directors or such supervising employee believes that the Participant has not substantially performed the Participant’s duties; or 

(d) any act of willful misconduct by the Participant which: 

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

1.4 Change of Control - means, and shall be deemed to have occurred upon the occurrence of one or more of
the following events: 
 (a) the consolidation, reorganization, merger or other transaction pursuant to which
more than fifty percent (50%) of the combined voting power of the outstanding equity interests in the Company cease to be owned by Sunoco, Inc. and its Affiliates; 

(b) a “Change in Control” of Sunoco, Inc., as defined from time to time in the Sunoco, Inc. stock plans; or

 (c) the general partner (whether the Company or any other Person) of the Partnership ceases to be an Affiliate
of Sunoco, Inc. 

  
 Annual
Incentive Plan 

 1.5 CIC Incentive Award - means the incentive award payable in
cash following a Change of Control, as described herein at Section 8.4. 
 1.6 CIC Participant
- means a Participant: 
 (a) whose employment was terminated by the Company (other than for Cause) on or
following the Change of Control, but before payment of the CIC Incentive Award; or 
 (b) whose employment was
terminated by the Company (other than for Cause) before the Change of Control, or 
 (c) who terminated
employment for one of the following reasons: 
 (1) the assignment to such Participant of any duties
inconsistent in a way significantly adverse to such Participant, with such Participant’s positions, duties, responsibilities and status with the Company immediately prior to the Change of Control, or a significant reduction in the duties and
responsibilities held by the Participant immediately prior to the Change of Control, in each case except in connection with such Participant’s termination of employment by the Company for Cause; or 

(2) with respect to any Participant who is a member of the Company’s board of directors immediately prior to the
Change of Control, any failure of the members of the Company to elect or re-elect, or of the Company to appoint or re-appoint, the Participant as a member of such board of directors; or 

(3) a reduction by the Company in either the Participant’s annual base salary or guideline (target) bonus as in
effect immediately prior to the Change of Control; or 
 (4) the failure of the Company to provide the
Participant with employee benefits and incentive compensation opportunities that: 
 (i) are not less favorable
than those provided to other executives who occupy the same grade level at the Company as the Participant, or if the Company’s grade levels are no longer applicable, to a similar peer group of the executives of the Company; and 

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

(A) incentive compensation opportunities, 

(B) savings and retirement benefits, 

(C) welfare benefits, and 
 (D) fringe benefits and vacation, 
 as the most favorable of each such category of
benefit in effect for the Participant at any time during the 120-day period immediately preceding the Change of Control; or 
 (5) the Company requires the Participant to be based anywhere other than the Participant’s present work location or a location within thirty-five (35) miles from the present location; or the
Company requires the Participant to travel on Company business to an extent substantially more burdensome than such Participant’s travel obligations during the period of twelve (12) consecutive months immediately preceding the Change of
Control; 
 provided, however, that in the case of a Participant whose employment terminates under either subsection
1.6(b) or (c), such Participant can demonstrate that such termination, or circumstance leading to the termination, was at the request of a third party with which the Company had entered into negotiations or an agreement regarding a Change of
Control, or otherwise occurred in connection with a Change of Control; and further provided, that in either case, the Change of Control actually occurs within one (1) year 

  
 Annual
Incentive Plan 

 
following the employment termination and, in the event of a termination under 1.6(c), the termination occurs within 120 days after the occurrence of the event or events constituting the reason
for such termination; or 
 (d) who was, immediately before the Change of Control, eligible for a prorated award
under the provisions of Section 8.3; or 
 (e) who was employed by the Company on the date of the Change of
Control and who does not incur a termination for Cause before payment of the CIC Incentive Award, in the event that, prior to the end of the calendar year in which the Change of Control occurred, either: 

(1) the Plan is terminated; or 
 (2) the performance measures and/or performance targets for the applicable Plan Year are changed or modified, resulting in a decrease in the amount of any CIC Incentive Award otherwise payable.

 1.7 CIC Short Period - means the portion of the Plan Year from January 1 to the date of the
occurrence of a Change of Control. 
 1.8 Company - means Sunoco Partners LLC, a Pennsylvania
limited liability company. The term “Company” shall include any successor to Sunoco Partners LLC, any subsidiary or Affiliate thereof that has adopted the Plan, or any entity succeeding to the business of Sunoco Partners LLC, or any
subsidiary or Affiliate, by merger, consolidation, liquidation, or purchase of assets or equity, or similar transaction. 
 1.9 Compensation Committee - means the Compensation Committee of the Company’s Board of Directors. 

1.10 Incentive Award - means the award granted to a Participant. 

1.11 Participant - means a person participating or eligible to participate in the Plan, as determined under
Section 5. 
 1.12 Partnership - means Sunoco Logistics Partners L.P., a Delaware limited
partnership, and its subsidiaries. 
 1.13 Person - means an individual, corporation, limited
liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity. 

1.14 Plan - means the Company’s Annual Incentive Plan as set forth herein, and as the same may be
amended from time to time. 
 1.15 Plan Year - means the performance (calendar) year. 

1.16 Pro-Rated Incentive Award - For purposes of Section 8.3(a) and (b) means an amount equal to
the Incentive Award otherwise payable to a Participant for the Plan Year in which the Participant’s initiation of employment with the Company (new hires) or termination of employment with the Company (other than for Cause) is effective,
multiplied by a fraction, the numerator of which is the number of full and partial months in the applicable Plan Year beginning on the date such Participant’s employment with the Company began or through the date of termination of such
Participant’s employment, as applicable, and the denominator of which is twelve (12). For purposes of Section 8.3(c) means an Incentive Award equal to the sum of (i) the amount equal to the Incentive Award payable to the Participant
for the Plan year based on the Participant’s previous position, multiplied by a fraction, the numerator of which is the number of full and partial months of the applicable Plan year in which the Participant was in the previous position and the
denominator of which is twelve (12), and (ii) the amount equal to the Incentive Award payable to the Participant for the Plan year based on the Participant’s new position, multiplied by a fraction, the numerator of which is the number of
full and partial months 

  
 Annual
Incentive Plan 

 
of the applicable Plan year in which the Participant has been in the new position and the denominator of which is twelve (12). 

2. Purpose. The purpose of this Plan is to motivate management and the employees of the Company and its Affiliates who perform
services for the Partnership to collectively produce outstanding results, encourage superior performance, increase productivity, and aid in attracting and retaining key employees. 

3. Plan guidelines. The administration of the Plan and any potential awards granted pursuant to the Plan is subject to the
determination by the Compensation Committee of the Company’s Board of Directors that the performance goals for the applicable periods have been achieved. The Plan is an additional compensation program designed to encourage Participants to
exceed specified objective performance targets for the designated period. The Compensation Committee will review the Partnership’s performance results for the designated performance period, and thereafter will determine whether or not to
approve awards under the Plan. 
 4. Performance Targets. 

4.1 Designation of Performance Targets. The Company’s Chief Executive Officer shall recommend, subject to approval by
the Company’s Compensation Committee, the performance measures and performance targets to be used for each Plan Year in determining the Incentive Awards to be paid under the Plan. Performance targets may be based on Partnership, business unit
and/or individual achievements, or any combination of these, or on such other factors as the Company’s Chief Executive Officer, subject to the approval of the Compensation Committee, may determine. Different performance targets may be
established for different participants for any Plan Year. Satisfactory results, as determined by the Company’s Compensation Committee in its sole discretion, must be achieved in order for an Incentive Award to be made pursuant to the Plan.

 4.2 Equitable Adjustment to Performance Measure Results. At its discretion, the Compensation Committee may
adjust actual performance measure results for extraordinary events or accounting adjustments resulting from significant asset purchases or dispositions or other events not contemplated or otherwise considered by the Compensation Committee when the
performance measures and targets were set. 
 5. Participants. The Compensation Committee, in consultation with the
Company’s Chief Executive Officer, will designate members of management and employees of the Company and its Affiliates as eligible to participate in the Plan. Employees so designated shall be referred to as “Participants.”

 6. Participation Levels. A Participant’s designated level of participation in the Plan, or target Incentive
Award, will be determined under criteria established or approved by the Compensation Committee for that Plan Year or designated performance period. Levels of participation in the Plan may vary according to a Participant’s position and the
relative impact such Participant can have on the Company’s and/or Affiliates’ operations. Care will be used in communicating to any Participant his performance targets and potential performance amount for a Plan Year. The amount of target
Incentive Award a participant may receive for any Plan Year, if any, will depend upon the performance level achieved (unless waived) for that Plan Year, as determined by the Compensation Committee. If a Participant’s designated level of
participation in the Plan, or target Incentive Award, changes during the Plan Year for any reason, the award for that Plan Year shall be prorated against each component of designated level of participation, or target Incentive Award, and the
applicable portion of the Plan Year, as long as the Participant is employed at the end of the performance period and is otherwise eligible. No Participant shall have any claim to be granted any award under the Plan, and there is no obligation for
uniformity of treatment of Participants. The terms and conditions of awards need not be the same respecting each Participant. 

  
 Annual
Incentive Plan 

 7. Award Payout. Incentive Awards typically will be determined after the end of the
Plan Year or designated performance period. Awards will be paid in cash annually, unless otherwise determined by the Compensation Committee. The Compensation Committee will have the discretion, by Participant or all Participants, to adjust some or
all of the amount of any Incentive Award that otherwise would be payable by reason of the satisfaction of the applicable performance targets. In making any such determination, the Compensation Committee is authorized to take into account any such
factor or factors it determines are appropriate, including but not limited to Company, business unit and individual performance. Notwithstanding the foregoing, payment of Incentive Awards will be made within two and one-half (2-1/2) months following
the end of the Plan Year. 
 8. Termination of Employment. 

8.1 Voluntary Termination. Except in the event of a Change of Control, if a Participant terminates his or
her employment with the Company, or one of its Affiliates, for any reason (other than retirement, death, permanent disability, approved leave of absence or transfer of employment to Sunoco, Inc., or one of its Affiliates, prior to December 31
of any Plan Year, such Participant will not receive payment of the Incentive Award for such Plan Year, and will forfeit any right, title or interest in such Incentive Award, unless and to the extent waived by the Compensation Committee in its sole
discretion; provided, however, that a Participant who is eligible to receive payment of retirement benefits under the Sunoco, Inc. Retirement Plan, and who terminates voluntarily his or her employment with the Company prior to
December 31 of any Plan Year, will be paid a Pro-Rated Incentive Award, as provided in Section 8.3, hereof. 
 8.2 Termination for Cause. A Participant will not receive payment of any Incentive Award for a particular Plan Year if the Participant’s employment with the Company is terminated for
Cause prior to the payment of such Incentive Award. 
 8.3 Proration of Incentive Award.

 (a) A Pro-Rated Incentive Award, reflecting participation for a portion of the Plan Year, will be paid to any
Participant whose employment status changed during the year as a result of: 
 (1) death; 

(2) permanent disability (as determined by the Committee); 

(3) retirement;(4) voluntary termination, or resignation, of employment by a Participant who, atthe time of such
voluntary termination or resignation, is eligible to receive payment of retirement benefits under the Sunoco, Inc. Retirement Plan; 
 (5) approved leave of absence; or 
 (6) termination at the
Company’s request (other than for Cause), for Participants in salary Grade 11 or above on the employment termination date; provided, however, that should such Participant choose to receive Benefits under the Sunoco Partners LLC Executive
Involuntary Severance Plan, he or she will not be eligible to receive a Pro-Rated Incentive Award under this Plan. 
 (b) Newly-hired employees and part-time employees also will receive a Pro-Rated Incentive Award. 
 (c) If the Participant has a change in level of employment after the beginning of the Plan Year, the Participant will receive a Pro-Rated Incentive Award, with pro-ration based on the length of time and
guideline percentage in the previous and new position, as more particularly described in Section 1.16 and Section 6 

  
 Annual
Incentive Plan 

 (d) Unless otherwise required by applicable law, any Pro-Rated Incentive
Award payable hereunder will be paid on the date when awards are otherwise payable as provided in the Plan. 

8.4 Change of Control. Upon the occurrence of a Change of Control, the terms of this Section 8.4 shall
immediately become operative, without further action or consent by any person or entity, and once operative shall supersede and control over any other provisions of this Plan: 

(a) Acceleration. The CIC Incentive Award shall be payable in cash to all CIC Participants within thirty
(30) days following the occurrence of a Change of Control (or as soon as it is practicable to determine the level of attainment of applicable performance targets under subsection 8.4(a)(1)), but in no event later than two and one-half (2 1/2)
months following the end of the Plan Year in which the Change of Control occurred). Such award shall be calculated according to the terms of the Plan, except as follows: 

(1) the level of attainment of applicable performance targets shall be determined based upon the performance of the
Partnership for completed months from January 1 through the date of the Change of Control. 
 (2) The
amount of the CIC Incentive Award shall be equal to the respective award adjusted to reflect the level of attainment of applicable performance targets, multiplied by the number of full and partial months in the CIC Short Period divided by twelve
(12). 
 (3) Notwithstanding anything herein to the contrary, no action taken by the Compensation Committee or
the Board of Directors after a Change of Control, or before, but in connection with, a Change of Control, may: (i) terminate or reduce the CIC Incentive Award or prospective CIC Incentive Award payable to any Participant in connection with such
Change of Control without the express written consent of such Participant; or (ii) adversely affect a Participant’s rights under subsection 8.4(b) in connection with such Change of Control. 

(b) Attorney’s Fees. The Company shall pay all reasonable legal fees and related expenses incurred by or with
respect to a Participant during his lifetime or within ten (10) years after his death in seeking to obtain or enforce payment of the CIC Incentive Award to which such Participant may be entitled under the Plan after a Change of Control;
provided, however, that the Participant (or a Participant’s representative) shall be required to repay any such amounts to the Company to the extent a court of competent jurisdiction issues a final and non-appealable order setting forth
the determination that the position taken by the Participant (or a Participant’s representative) was frivolous or advanced in bad faith. Reimbursement shall be made on or before the close of the calendar year following the calendar year in
which the expense was incurred. The amount of expenses eligible for reimbursement under this provision in one calendar year may not affect the amount of expenses eligible for reimbursement under this provision in any other calendar year. 

9. Amendment and Termination. The Compensation Committee, at its sole discretion, may amend the Plan or terminate the Plan at any
time (except as otherwise set forth in Section 8.4). 
 10. Administration. The Compensation Committee may delegate
the responsibility for the administration and operation of the Plan to the Chief Executive Officer (or designee) of the Company or any participating Affiliate. The Compensation Committee (or the person(s) to which administrative authority has been
delegated) shall have the authority to interpret and construe any and all provisions of the Plan, including all performance targets and whether and to what extent achieved. Any determination made by the Compensation Committee (or the person(s) to
which administrative authority has been delegated) shall be final and conclusive and binding on all persons. 

  
 Annual
Incentive Plan 

 11. Indemnification. Neither the Company, any participating Affiliate, nor the Board
of Directors, or any member or any committee thereof, of the Company or any participating Affiliate, nor any employee of the Company or any participating Affiliate shall be liable for any act, omission, interpretation, construction or determination
made in connection with the Plan in good faith; and the members of the Company’s Board of Directors, the Compensation Committee and/or the employees of the Company or any participating Affiliate shall be entitled to indemnification and
reimbursement by the Company to the maximum extent permitted by law in respect of any claim, loss, damage or expense (including counsel’s fees) arising from their acts, omission and conduct in their official capacity with respect to the Plan.

 12. General provisions. 
 12.1 Non-Guarantee of Employment. Nothing contained in this Plan shall be construed as a contract of employment between the Company and/or a participating Affiliate and a Participant, and
nothing in this Plan shall confer upon any Participant any right to continued employment with the Company or a participating Affiliate, or to interfere with the right of the Company or a participating Affiliate to terminate a Participant’s
employment, with or without cause. 
 12.2 Interests Not Transferable. No benefits under the Plan
shall be subject in any manner to alienation, sale, transfer, assignment, pledge, attachment or other legal process, or encumbrance of any kind, and any attempt to do so shall be void. 

12.3 Facility Payment. Any amounts payable hereunder to any person under legal disability or who, in the
judgment of the Compensation Committee or its designee, is unable to properly manage his or her financial affairs, may be paid to the legal representative of such person, or may be applied for the benefit of such person in any manner which the
Compensation Committee or its designee may select, and each participating Affiliate shall be relieved of any further liability for payment of such amounts. 
 12.4 Controlling Law. To the extent not superseded by federal law, the law of the Commonwealth of Pennsylvania shall be controlling in all matters relating to the Plan. 

12.5 No Rights to Award. No person shall have any claim to be granted any award under the Plan, and there is
no obligation for uniformity of treatment of participants. The terms and conditions of awards need not be the same with respect to each recipient. 
 12.6 Severability. If any Plan provision or any award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any person or award, or would
disqualify the Plan or any award under the law deemed applicable by the Compensation Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the
determination of the Compensation Committee, materially altering the intent of the Plan or the award, such provision shall be stricken as to such jurisdiction, person or award and the remainder of the Plan and any such award shall remain in full
force and effect. 
 12.7 No Trust or Fund Created. Neither the Plan nor any award shall create or
be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any participating Affiliate and a Participant or any other person. To the extent that any person acquires a right to receive payments from
the Company or any participating Affiliate pursuant to an award, such right shall be no greater than the right of any general unsecured creditor of the Company or any participating Affiliate. 

12.8 Headings. Headings are given to the sections of the Plan solely as a convenience to facilitate
reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision of it. 

  
 Annual
Incentive Plan 

 12.9 Tax Withholding. The Company and/or any participating
Affiliate may deduct from any payment otherwise due under this Plan to a Participant (or beneficiary) amounts required by law to be withheld for purposes of federal, state or local taxes. 

  
 Annual
Incentive Plan

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