Document:

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                                                                    Exhibit 10.2

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                               SUNOCO PARTNERS LLC
                      DIRECTORS' DEFERRED COMPENSATION PLAN

                                   Dated as of
                                  July 22, 2002

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                                    ARTICLE I

                                   Definitions

     As used in this Plan, the following terms shall have the meanings herein
specified:

     1.1 95% Withdrawal - shall have the meaning provided herein at Section 7.1.

     1.2 Change in Control - shall mean, and shall be deemed to have occurred,
upon the occurrence of one or more 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 the assets
     of the Company or the Partnership to any Person or its Affiliates, other
     than to Sunoco or any Affiliate of Sunoco;

          (b) 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 and its Affiliates;

          (c) a "Change in Control" of Sunoco, as defined from time to time in
     the Sunoco stock plans; or

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

     1.3 Committee - shall mean the entire board of directors of the Company
acting as an administrative committee of the whole, or such other committee of
the Board as may be appointed from time to time for purposes of administering
this Plan.

     1.4 Common Unit - shall mean a common unit, representing a limited
partnership interest in the Partnership.

     1.5 Company - shall mean Sunoco Partners LLC, a Pennsylvania limited
liability company. The term "Company" shall include any successor to Sunoco
Partners LLC, any subsidiary or affiliate which has adopted the Plan, or an
entity that succeeds to the business of Sunoco Partners LLC, or any subsidiary
or affiliate, by merger, consolidation, liquidation or purchase of assets or
stock or similar transaction.

     1.6 Compensation - shall mean those fees and retainers payable by the
Company to a Participant in consideration for service as a Director.

     1.7 DER (or Distribution Equivalent Right) - shall mean, with regard to a
specific Restricted Unit (whether held in a Voluntary Deferred Compensation
Account or in a Mandatory Deferred Compensation Account), the contingent right
to receive an amount in cash equal to the

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cash distributions made by the Partnership with respect to a Common Unit during
the period such Restricted Unit is outstanding.

     1.8  Director - shall mean a member of the Board of Directors of Sunoco
Partners LLC.

     1.9  Mandatory Deferred Compensation Account - shall mean, with respect to
any Participant, the total amount of the Company's liability for payment of
compensation mandatorily deferred by the Participant under this Plan.

     1.10 Mandatory Form of Continuing Deferral - shall mean and refer to the
written commitment by a Participant, in the form prescribed by the Committee, to
mandatorily defer the payment of all of the Board Restricted Unit Retainer
awarded to such Participant under this Plan pursuant to Article IV hereof.

     1.11 Participant - shall mean a Director, or former Director, who either
voluntarily has elected to defer, or is required mandatorily to defer, the
receipt of Compensation in accordance with the terms of this Plan.

     1.12 Partnership - shall mean Sunoco Logistics Partners L.P., a Delaware
limited partnership.

     1.13 Plan - shall mean this Sunoco Partners LLC Directors' Deferred
Compensation Plan, as it may be amended from time to time.

     1.14 Restricted Unit - shall mean a phantom, or notional, unit (equivalent
in value and in cash distribution rights to a Common Unit), entered as a credit
in either the Mandatory Deferred Compensation Account, or the Voluntary Deferred
Compensation Account of a Participant and which, upon death, retirement or
termination of Board service (for mandatorily deferred compensation) or upon
earlier payout under the terms of this Plan (for voluntarily deferred
compensation), entitles the Participant to receive a Common Unit.

     1.15 Voluntary Deferred Compensation Account - shall mean, with respect to
any Participant, the total amount of the Company's liability for payment to the
Participant of voluntarily deferred compensation under this Plan, including any
payments in respect of DERs.

     1.6  Voluntary Deferred Payment Election Form - shall mean and refer to the
written election by a Participant, in the form prescribed by the Committee, to
voluntarily defer the payment of all or a portion of such Participant's
Compensation under this Plan pursuant to Article II hereof.

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                                   ARTICLE II

                  Voluntary Deferral of Directors' Compensation

     2.1 Election to Defer. Prior to the beginning of any calendar quarter, a
Participant may elect voluntarily to defer in the form of Restricted Units, all
or a portion of the cash-based Compensation that would otherwise be paid to the
Participant in the next succeeding calendar quarter, by filing a written notice
of election with the Secretary of the Company on the form(s) prescribed by the
Committee. Any such voluntary deferral election shall apply only to cash-based
Compensation to be earned on or after the first day of the calendar quarter
following the calendar quarter in which the election is received by the
Secretary of the Company. An election to defer, made in accordance with this
Article II shall be irrevocable. The deferral election form(s) also will permit
the Participant to specify:

       (a) the percentage of the cash-based Compensation to be deferred;

       (b) the selection of a method of payment as set forth in Article III; and

       (c) the designation of a beneficiary as set forth in Article V.

     Without any further action by Participant, the choices specified in the
Participant's Voluntary Deferred Payment Election Form regarding the percentage
of Compensation deferred and the designation of a beneficiary each shall
continue and be applied from calendar quarter to calendar quarter to amounts yet
to be deferred. Until further express written notification to the contrary, on a
form prescribed by the Committee, these choices shall continue to be applied
prospectively to amounts to be credited to the Participant's Voluntary Deferred
Compensation Account balance.

     2.2 Subsequent Change in Method of Payment Election.

       (a) Change in Method of Payment Prior to Commencement of Distribution
     or Payment. With the approval of the Committee, and at any time not later
     than twelve (12) months prior to the commencement of any payment or
     distribution of the amounts credited to the Participant's Voluntary
     Deferred Compensation Account, a Participant in this portion of the Plan
     may file a written request with regard to the method of payment (i.e., a
     series of installments versus lump-sum payout), on a form prescribed by the
     Committee, which will revoke all such earlier or prior elections with
     regard to the method of payment (i.e., a series of installments versus
     lump-sum payout), and such new choice as to method of payment will be
     applied both to amounts previously credited to the Participant's current
     Voluntary Deferred Compensation Account balance, as well as to amounts to
     be credited to such Voluntary Deferred

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     Compensation Account balance prospectively. Any such new or subsequent
     election that is made less than twelve (12) months prior to the
     commencement of any payment or distribution of the amounts credited to the
     Participant's Voluntary Deferred Compensation Account, will be null and
     void, and the Participant's most recent preceding timely election will be
     reinstated.

          (b) Change in Method of Payment Following Commencement of Distribution
     or Payment. After payment or distribution of amounts credited to the
     Participant's Voluntary Deferred Compensation Account has commenced, the
     Participant may not change the period of time for which such amounts are
     payable. However the Participant may convert installment payments to a lump
     sum distribution subject to a penalty equal to a five percent (5%)
     reduction in the balance of the Participant's Voluntary Deferred
     Compensation Account, which shall be forfeited to the Company.

     2.3 Amount of Deferral. The amount of cash-based Compensation to be
voluntarily deferred shall be designated by the Participant as a percentage of
such cash-based Compensation in multiples of five percent (5%) but shall not be
less than ten percent (10%).

     2.4 Time of Election. Except as otherwise determined by the Committee in
its sole discretion, an election to defer must be filed and received by the
Committee by the end of the calendar quarter preceding the calendar quarter in
which the cash-based Compensation is to be earned. A new Director also may elect
voluntarily to defer cash-based Compensation prior to the commencement of his or
her term in office.

                                   ARTICLE III

                    Voluntary Deferred Compensation Accounts

     3.1 Creation of Voluntary Deferred Compensation Accounts. Cash-based
Compensation voluntarily deferred hereunder shall be credited to a Voluntary
Deferred Compensation Account established by the Company for each Participant.
The portion of cash-based Compensation thus voluntarily deferred by the
Participant shall be converted into a number of Restricted Units credited to a
Participant's Voluntary Deferred Compensation Account as set forth in the Plan.

     3.2 Crediting Restricted Units. Restricted Units shall be credited to a
Participant's Voluntary Deferred Compensation Account at the time the cash-based
Compensation otherwise would have been paid had no election to defer been made.
The number of Restricted Units to be credited to the Voluntary Deferred
Compensation Account shall be determined by dividing the Compensation by the
average closing price for Common Units of the Partnership as published in the
Wall Street

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Journal under the caption "New York Stock Exchange Composite Transactions" for
the ten (10) day period prior to the day on which the Compensation otherwise
would have been paid. Any fractional Restricted Units also shall be credited to
a Participant's Voluntary Deferred Compensation Account. The number of
Restricted Units in a Participant's Voluntary Deferred Compensation Account
shall be adjusted appropriately by the Committee in the event of changes in the
Partnership's outstanding Common Units by reason of any distribution,
re-capitalization, merger, consolidation, split-up, combination, exchange of
units or the like, and such adjustments shall be conclusive. Crediting of
Restricted Units to a Participant's Voluntary Deferred Compensation Account
shall not entitle the Participant to the rights of a limited partner of the
Partnership or holder of Partnership Common Units.

     3.4 Crediting DERs. For each Restricted Unit in the Participant's Voluntary
Deferred Compensation Account, the Company shall credit such account with an
amount, in respect of DERs, equal to the cash distributions declared on a Common
Unit of the Partnership. The crediting shall occur as of the date on which such
cash distributions on the Common Units are paid. The number of Restricted Units
to be credited to the Participant's Voluntary Deferred Compensation Account
shall be calculated by dividing the number of DERs by the average closing price
for the Partnership's Common Units as published in the Wall Street Journal under
the caption "New York Stock Exchange Composite Transactions" for the period of
ten (10) trading days prior to the day on which the cash distributions are paid
on the Partnership's Common Units. Any fractional Restricted Units also shall be
credited to the Participant's Voluntary Deferred Compensation Account.

     3.7 Time of Payment.

          (a) Election of Benefit Commencement Date. Except as provided in
     Section 2.2 hereinabove, and in Article VII hereof, all payments of a
     Participant's Voluntary Deferred Compensation Account shall be made at, or
     shall commence on, the date selected by the Participant in accordance with
     the terms of this Section 3.7. The date of payment or distribution must be
     irrevocably specified by the Participant in his or her most recently filed
     written Voluntary Deferred Payment Election Form. If the Participant fails
     to designate a time of payment, payment shall commence on the first day of
     the calendar year following termination of Board membership. The
     Participant may elect to defer the receipt of his or her cash-based
     Compensation to:

               (1) the first day of any calendar quarter, provided such date is
          at least six (6)

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          months after the end of the calendar quarter in which the cash-based
          Compensation is earned; or

               (2) the first day of the calendar year following the date of:

                    (i) retirement as a Director;

                    (ii) termination of Board membership; or

                    (iii) death. Upon the death of a Participant, prior to the
               final payment of all amounts credited to such Participant's
               Voluntary Deferred Compensation Account, the balance of such
               Voluntary Deferred Compensation Account shall be paid in
               accordance with Article V, commencing on the first day of the
               calendar year following the year of death.

         Notwithstanding the foregoing provisions of this Section 3.7, and
     except as provided in Article VII, in no event shall any payment or
     distribution be made within six (6) months of the cash-based Compensation
     being earned or awarded. The benefit commencement date may not be later
     than the third calendar year following the attainment of mandatory
     retirement age for Directors.

          (b) Acceleration of Benefit Commencement Date Prior to Payment. At any
     time prior to the commencement of any payment or distribution of a
     Participant's Voluntary Deferred Compensation Account, such Participant may
     request in writing to accelerate the receipt of all or a specified portion
     of such voluntarily deferred cash-based Compensation amounts to the first
     day of any calendar quarter; provided, however, that such date is at least
     six (6) months after the end of the quarter in which the cash-based
     Compensation is earned. Any such acceleration will be subject to a penalty
     equal to a five percent (5%) reduction in the balance of the Participant's
     Voluntary Deferred Compensation Account, which shall be forfeited to the
     Company;

     3.8 Method of Payment. A Participant in this portion of the Plan shall have
the option of:

          (a) selecting a lump-sum payment;

          (b) selecting a series of approximately equivalent annual installments
     (adjusted as necessary to reflect amounts accrued during the installment
     payout period in respect of DERs) in such number of installments as the
     Participant shall specify (not exceeding twenty (20) installments); or

          (c) not selecting a method of payment at the time the Voluntary
     Deferred Payment Election Form is prepared. If the Participant does not
     select a method of payment, then at

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     least twelve (12) months prior to the time the deferral amount is scheduled
     to be paid, the Participant must notify the Secretary of the Company as to
     the specific method of payment which will be either in a lump sum or in
     approximately equivalent annual installments, and such election shall be
     subject to the consent of the Committee. Failure to provide appropriate
     notification to the Secretary of the Company will result in a lump sum
     payment on the deferral payment date.

     A Participant in this portion of the Plan shall receive in cash all
voluntarily deferred cash-based Compensation credited to such Participant's
Voluntary Deferred Compensation Account. Restricted Units credited to the
Participant's Voluntary Deferred Compensation Account shall be valued at the
average closing price for Common Units of the Partnership as published in the
Wall Street Journal under the caption "New York Stock Exchange Composite
Transactions" for the ten (10) day period prior to each new calendar year.

                                   ARTICLE IV

                    Mandatory Deferred Compensation Accounts

     4.1 Creation of Mandatory Deferred Compensation Accounts. Compensation
deferred under this Article IV shall be credited, in the form of Restricted
Units, to a Mandatory Deferred Compensation Account established by the Company
for each Participant. Payout of such mandatorily deferred Compensation amounts
shall not commence until death, retirement or the termination of Board service.

     4.2 Crediting Restricted Units. If the Committee elects to do so, each
Participant serving as a director of the Company, but who is not also an
employee of the Company, or any subsidiary or affiliate thereof, will be paid,
in quarterly installments, an aggregate annual dollar amount (the "Board
Restricted Unit Retainer") to be credited to a Participant's Mandatory Deferred
Compensation Account in the form of Restricted Units. The number of Restricted
Units to be credited quarterly to the Participant's Mandatory Deferred
Compensation Account shall be determined by dividing the Board Restricted Unit
Retainer quarterly installment cash amount by the average closing price for
Common Units of the Partnership as published in the Wall Street Journal under
the caption "New York Stock Exchange Composite Transactions" for the ten (10)
day period prior to the day on which the quarterly installment payment is due.

     The number of Restricted Units in a Participant's Mandatory Deferred
Compensation Account shall be adjusted appropriately by the Committee in the
event of changes in the Partnership's

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outstanding Common Units by reason of any distribution, re-capitalization,
merger, consolidation, split-up, combination, exchange of units or the like, and
such adjustments shall be conclusive. Crediting of Restricted Units to a
Participant's Mandatory Deferred Compensation Account shall not entitle the
Participant to the rights of a limited partner of the Partnership or holder of
Partnership Common Units.

     4.4 Crediting DERs. For each Restricted Unit in the Participant's Mandatory
Deferred Compensation Account, the Company shall credit such account with an
amount, in respect of DERs, equal to the cash distributions declared on a Common
Unit of the Partnership. The crediting shall occur as of the date on which such
cash distributions on the Common Units are paid. The number of Restricted Units
to be credited to the Participant's Mandatory Deferred Compensation Account
shall be calculated by dividing the number of DERs by the average closing price
for the Partnership's Common Units as published in the Wall Street Journal under
the caption "New York Stock Exchange Composite Transactions" for the period of
ten (10) trading days prior to the day on which the cash distributions are paid
on the Partnership's Common Units. Any fractional Restricted Units also shall be
credited to the Participant's Mandatory Deferred Compensation Account.

     4.5 Time of Payment.

          (a) Benefit Commencement Date for Mandatory Deferred Compensation
     Account. All payments of a Participant's Mandatory Deferred Compensation
     Account shall be made at, or shall commence on, the date selected by the
     Participant in accordance with the terms of this Article IV. The date of
     payment or distribution must be specified by the Participant in his or her
     written Mandatory Form of Continuing Deferral unless such election is
     revoked. A Participant's revocation must be submitted in writing to the
     Secretary of the Company. If the Participant makes a new election with
     regard to the date of payment or distribution for mandatorily deferred
     Compensation, such new election will apply only prospectively to any
     additional Restricted Units to be credited to the Mandatory Deferred
     Compensation Account. If the Participant fails to designate a time of
     payment, payment shall commence on the first day of the calendar year
     following termination of Board service.

          The Participant may elect to defer the receipt of such Participant's
     Board Restricted Unit Retainer to the first day of the year following the
     date of:

               (1) retirement as a Director;

               (2) termination of Board service; or

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               (3) death. Upon the death of a Participant, prior to the final
          payment of all amounts credited to such Participant's Mandatory
          Deferred Compensation Account, the balance of such Mandatory Deferred
          Compensation Account shall be paid in accordance with Article V,
          commencing on the first day of the calendar year following the year of
          death.

          Notwithstanding the foregoing provisions of this Section 4.5, in no
     event, however, shall any payment or distribution be made within the six
     (6) months of any quarterly installment of the Board Restricted Unit
     Retainer being earned. The benefit commencement date may not be later than
     the third calendar year following the attainment of mandatory retirement
     age for Directors.

          (b) Acceleration of Benefit Commencement Date Prior to Payment. At any
     time prior to the commencement of any payment or distribution of a
     Participant's Mandatory Deferred Compensation Account, such Participant may
     request in writing to accelerate the receipt of all or a specified portion
     of such Mandatory Deferred Compensation Account amounts to the first day of
     any calendar quarter; provided, however, that such date is at least six (6)
     months after the end of the quarter in which any amount of the mandatorily
     deferred Compensation subject to such acceleration request has been earned.
     Any such acceleration will be subject to a penalty equal to a five percent
     (5%) reduction in the balance of the Participant's Mandatory Deferred
     Compensation Account, which shall be forfeited to the Company.

     4.6 Method of Payment. Participant shall have the option of:

          (a) selecting a lump sum payment;

          (b) selecting a series of approximately equivalent annual installments
     (adjusted as necessary to reflect amounts accrued during the installment
     payout period in respect of DERs) in such number of installments as the
     Participant shall specify (not exceeding twenty (20) installments); or

          (c) not selecting a method of payment at the time the Mandatory Form
     for Continuing Deferral is prepared. If the Participant does not select a
     method of payment, then, at least twelve (12) months prior to the time the
     deferral amount is scheduled to be paid, the Participant must notify the
     Secretary of the Company as to the specific method of payment which will be
     either in a lump sum or in approximately equivalent annual installments,
     and such election shall be subject to the consent of the Committee. Failure
     to provide appropriate notification to the Secretary of the Company will
     result in a lump sum payment on the deferral payment date.

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     The Participant shall receive in cash all mandatorily deferred Compensation
credited to such Participant's Mandatory Deferred Compensation Account.
Restricted Units credited to the Participant's Mandatory Deferred Compensation
Account shall be valued at the average closing price for Common Units of the
Partnership as published in the Wall Street Journal under the caption "New York
Stock Exchange Composite Transactions" for the ten (10) day period prior to each
new calendar year.

     4.7 Subsequent Change in Method of Payment Election.

          (a) Change in Method of Payment Prior to Commencement of Distribution
     or Payment. With the approval of the Committee, and at any time not later
     than twelve (12) months prior to the commencement of any payment or
     distribution of the amounts credited to the Participant's Mandatory
     Deferred Compensation Account, the Participant may file a written request
     with regard to the method of payment (i.e., a series of installments versus
     lump-sum payout), on a form prescribed by the Committee, which will revoke
     all such earlier or prior elections with regard to the method of payment
     (i.e., a series of installments versus lump-sum payout), and such new
     choice as to method of payment will be applied both to amounts previously
     credited to the Participant's current Mandatory Deferred Compensation
     Account balance, as well as to amounts to be credited to such Mandatory
     Deferred Compensation Account balance prospectively. Any such new or
     subsequent election that is made less than twelve (12) months prior to the
     commencement of any payment or distribution of the amounts credited to the
     Participant's Mandatory Deferred Compensation Account, will be null and
     void, and the Participant's most recent preceding timely election will be
     reinstated.

          (b) Change in Method of Payment Following Commencement of Distribution
     or Payment. After payment or distribution of amounts credited to the
     Participant's Mandatory Deferred Compensation Account has commenced, the
     Participant may not change the period of time for which such amounts are
     payable. However the Participant may convert installment payments to a lump
     sum distribution subject to a penalty equal to a five percent (5%)
     reduction in the balance of the Participant's Mandatory Deferred
     Compensation Account, which shall be forfeited to the Company.

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                                    ARTICLE V

                          Designation of Beneficiaries

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

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

     5.3 Survivor Benefits. Upon the Participant's death, any balances in the
Participant's Mandatory Deferred Compensation Account and/or Voluntary Deferred
Compensation Account shall be paid in accordance with the method and form
elected by the Participant; provided, however, that the balance of the
Participant's Mandatory Deferred Compensation Account and/or Voluntary Deferred
Compensation Account may be paid out as a lump sum at the request of the
designated beneficiary, and with the consent of the Committee.

                                   ARTICLE VI

                               Source of Payments

     All payments of deferred Compensation shall be paid in cash from the
general funds of the Company and the Company shall be under no obligation to
segregate any assets in connection with the maintenance of any Mandatory
Deferred Compensation Account or Voluntary Deferred Compensation Account, nor
shall anything contained in this Plan nor any action taken pursuant to the Plan
create or be construed to create a trust of any kind, or a fiduciary
relationship between the

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Company and Participant. Title to the beneficial ownership of any assets,
whether cash or investments, that the Company may designate to pay the amount
credited to a Mandatory Deferred Compensation Account or a Voluntary Deferred
Compensation Account shall at all times remain in the Company and Participant
shall not have any property interest whatsoever in any specific assets of the
Company. Participant's interest in any Mandatory Deferred Compensation Account
or Voluntary Deferred Compensation Account shall be limited to the right to
receive payments pursuant to the terms of this Plan and such rights to receive
shall be no greater than the right of any other unsecured general creditor of
the Company.

                                   ARTICLE VII

                                Change in Control

     7.1 Effect of Change in Control on Payment. Anything to the contrary in
this Plan notwithstanding, a Participant may make an election at any time (a
"Change in Control Election") to receive, in a single lump sum payment, upon the
occurrence of a Change in Control, the balance of such Participant's Mandatory
Deferred Compensation Account and/or Voluntary Deferred Compensation Account, as
of the valuation date immediately preceding the Change in Control. Any Change in
Control Election, or revocation of an existing Change in Control Election, shall
be null and void if a Change in Control occurs within twelve (12) months after
it is made, and the Participant's most recent preceding Change in Control
Election, if timely made and not revoked at least twelve (12) months before the
Change in Control, shall remain in force. Each such election or revocation shall
be in writing and in conformity with such rules as may be prescribed by the
Committee. If no Change in Control Election is in force upon the occurrence of a
Change in Control, from the date of such Change in Control and for twelve (12)
months thereafter, each Participant, whether or not still a Director, shall have
the right to withdraw, in a single lump-sum cash payment, an amount equal to
ninety-five percent (95%) of the balance of each of such Participant's Mandatory
Deferred Compensation Account and/or Voluntary Deferred Compensation Account (a
"95% Withdrawal"), as of the valuation date immediately preceding the date of
withdrawal; provided, however, that if this option is exercised, such
Participant will forfeit to the Company the remaining five percent (5%) of the
balance of each such account (as of the valuation date immediately preceding the
date of withdrawal) from which the funds are withdrawn as a penalty. Payments
pursuant to a 95% Withdrawal shall be made as soon as practicable, but no later
than thirty (30) days after the Participant notifies the

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Committee in writing that such Participant is exercising the right to undertake
a 95% Withdrawal.

     7.2 Amendment on or after Change in Control. On or after a Change in
Control, or before, but in connection with, a Change in Control, no action shall
be taken that would affect adversely the rights of any Participant or the
operation of this Article VII with respect to the balance in the Participant's
Accounts immediately before such action, including, by way of example and not of
limitation, the amendment, suspension or termination of the Plan.

     7.3 Attorney's Fees. The Company shall pay all legal fees and related
expenses incurred by a Participant in seeking to obtain or enforce any payment,
benefit or right such Participant may be entitled to under the plan after a
Change in Control. The Participant shall reimburse the Company for such fees and
expenses at such time as a court of competent jurisdiction, or another
independent third party having similar authority, determines that the
Participant's claim was frivolously brought without reasonable expectation of
success on the merits thereof.

                                  ARTICLE VIII
                                  Miscellaneous

     8.1 Nonalienation of Benefits. Participant shall not have the right to
sell, assign, transfer or otherwise convey or encumber in whole or in part the
right to receive any payment under this Plan except in accordance with Article
V.

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

     8.3 Administration of the Plan. The Plan shall be administered by the
Committee which may make such rules and regulations and establish such
procedures for the administration of this Plan as it deems appropriate. In the
event of any dispute or disagreements as to the interpretation of this Plan or
of any rule, regulation or procedure or as to any questioned right or obligation
arising from or related to this Plan, the decision of the Committee shall be
final and binding upon all persons.

     8.4 Termination and Amendment. The Plan may be terminated at any time by
the Board of Directors of Sunoco Partners LLC, and may be amended at any time by
the Committee; provided, however, that, without the prior written consent of the
Participant, no such amendment or termination shall affect adversely the rights
of any Participant or beneficiary of a Participant with

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respect to amounts credited to such Participant's Mandatory Deferred
Compensation Account and/or Voluntary Deferred Compensation Account prior to
such amendment or termination.

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

     8.6 Governing Law. THIS PLAN SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA, WITHOUT GIVING EFFECT
TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF.

                                       14<PAGE>

                                                                   Exhibit 10-a

                       CHIQUITA BRANDS INTERNATIONAL, INC.

                      2002 STOCK OPTION AND INCENTIVE PLAN
                         as amended through May 24, 2002

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                                  CHIQUITA 2002

                         STOCK OPTION AND INCENTIVE PLAN

                               TABLE OF CONTENTS

I.    PURPOSE .........................................................  1

II.   DEFINITIONS .....................................................  1

III.  ADMINISTRATION ..................................................  4

      3.1  The Committee ..............................................  4
      3.2  Powers of the Committee ....................................  4
      3.3  Guidelines .................................................  5
      3.4  Delegation of Authority ....................................  5
      3.5  Decisions Final ............................................  5

IV.   SHARES SUBJECT TO PLAN ..........................................  5

      4.1  Shares Available for Issuance of Awards ....................  5
      4.2  Maximum Shares Per Participant .............................  6
      4.3  Re-Use of Shares ...........................................  6
      4.4  Adjustment Provisions ......................................  6

V.    CHANGE OF CONTROL; MERGER, CONSOLIDATION, ETC. ..................  6

      5.1  Effect of Change of Control On Outstanding Awards ..........  6
      5.2  Termination of Employment After Change of Control ..........  6
      5.3  Merger, Consolidation, Etc. ................................  6
      5.4  Applicability of Section V .................................  7

VI.   EFFECTIVE DATE AND DURATION OF PLAN .............................  7

      6.1  Effective Date .............................................  7
      6.2  Duration of Plan ...........................................  7

VII.  STOCK OPTIONS ...................................................  7

      7.1  Grants .....................................................  7
      7.2  Terms of Options ...........................................  7
      7.3  Incentive Stock Options ....................................  8
      7.4  Replacement Options ........................................  8

VIII. RESTRICTED AND UNRESTRICTED STOCK AWARDS ........................  9

      8.1  Grants of Restricted Stock Awards ..........................  9

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      8.2  Terms and Conditions of Restricted Awards ......................    9
      8.3  Unrestricted Stock Awards ......................................    9

IX.   PERFORMANCE AWARDS ..................................................   10

      9.1  Performance Awards .............................................   10
      9.2  Terms and Conditions of Performance Awards .....................   10

X.    TERMINATION OF AWARDS ...............................................   10

      10.1  Termination of Awards to Employees and Directors ..............   10
      10.2  Acceleration of Vesting and Extension of Exercise Period
            Upon Termination ..............................................   11
      10.3  Buyout and Settlement of Awards ...............................   11

XI.   TERMINATION OR AMENDMENT OF THIS PLAN ...............................   12

      11.1  Termination or Amendment ......................................   12

XII.  GENERAL PROVISIONS ..................................................   12

      12.1  No Right to Continued Employment ..............................   12
      12.2  Awards to Persons Outside the United States ...................   12
      12.3  Non-Transferability of Awards .................................   12
      12.4  Other Plans ...................................................   12
      12.5  Unfunded Plan .................................................   12
      12.6  Withholding of Taxes ..........................................   12
      12.7  Reimbursement of Taxes ........................................   13
      12.8  Governing Law .................................................   13
      12.9  Liability .....................................................   13
      12.10 Successors ....................................................   13

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                                  CHIQUITA 2002

                         STOCK OPTION AND INCENTIVE PLAN

                                   SECTION I.

                                     PURPOSE

         The purpose of the Chiquita 2002 Stock Option and Incentive Plan (the
"Plan") is to promote the long-term growth and financial success of Chiquita
Brands International, Inc. (the "Company") and its subsidiaries by enabling the
Company to compete successfully in attracting and retaining employees and
directors (and consultants and advisors) of outstanding ability, stimulating the
efforts of such persons to achieve the Company's long-range performance goals
and objectives, and encouraging the identification of their interests with those
of the Company's shareholders.

                                   SECTION II.

                                   DEFINITIONS

         For purposes of this Plan, the following terms shall have the following
meanings:

         2.1 "Advisor" means a person who provides bona fide advisory or
consulting services to the Company or a Subsidiary and whose Shares subject to
an Award are eligible for registration on Form S-8 under the Securities Act of
1933.

         2.2 "Award" means any form of Stock Option, Restricted Stock Award,
Unrestricted Stock Award or Performance Award granted under this Plan.

         2.3 "Award Agreement" means a written agreement setting forth the terms
of an Award.

         2.4 "Award Date" or "Grant Date" means the date designated by the
Committee as the date upon which an Award is granted.

         2.5 "Award Period" or "Term" means the period beginning on an Award
Date and ending on the expiration date of such Award.

         2.6 "Board" means the Board of Directors of the Company.

         2.7 "Cause" means a Participant's engaging in any of the following
acts:

             (i)    any type of disloyalty to the Company, including, without
         limitation, fraud, embezzlement, theft, or dishonesty in the course of
         a Participant's employment or business relationship with the Company;
         or

             (ii)   conviction of a felony or other crime involving a breach of
         trust or fiduciary duty owed to the Company; or

             (iii)  unauthorized disclosure of trade secrets or confidential
         information of the Company; or

             (iv)   a material breach of any agreement with the Company in
         respect of confidentiality, non-disclosure, non-competition or
         otherwise; or

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             (v)   any serious violation of Company policy that is materially
         damaging to the Company's interests.

         2.8 "Change of Control" means the occurrence after the Effective Date
of any of the following events:

             (i)   any "person" (as such term is used in Sections 13(d) and
         14(d) of the Exchange Act), other than an Exempt Entity, is or becomes
         the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the
         Exchange Act, except that a person shall be deemed to have "beneficial
         ownership" of all shares that such person has the right to acquire,
         whether such right is exercisable immediately or only after the passage
         of time), directly or indirectly, of 30% or more of the total voting
         power of all of the Company's voting securities then outstanding
         ("Voting Shares");

             (ii)  on any date, the individuals who constituted the Company's
         Board at the beginning of the two-year period immediately preceding
         such date (together with any new directors whose election by the
         Company's Board, or whose nomination for election by the Company's
         shareholders, was approved by a vote of at least two-thirds of the
         directors then still in office who were either directors at the
         beginning of such period or whose election or nomination for election
         was previously so approved) cease for any reason to constitute a
         majority of the directors then in office; or

             (iii) immediately after a merger or consolidation of the Company or
         any Subsidiary of the Company with or into, or the sale or other
         disposition of all or substantially all of the Company's assets to, any
         other corporation (where pursuant to the terms of such transaction
         outstanding Awards are assumed by the surviving, resulting or acquiring
         corporation or new Awards are substituted therefor), the Voting Shares
         of the Company outstanding immediately prior to such transaction do not
         represent (either by remaining outstanding or by being converted into
         voting securities of the surviving or acquiring entity or any parent
         thereof) more than 50% of the total voting power of the voting
         securities of the Company or surviving or acquiring entity or any
         parent thereof outstanding immediately after such merger or
         consolidation.

         2.9  "Code" means the United States Internal Revenue Code of 1986, as
amended, or any successor legislation. Reference to any particular section of
the Code includes any successor amendments or replacements of such section.

         2.10 "Committee" means the committee appointed by the Board and
consisting of two or more Directors of the Company, each of whom shall be a
"non-employee director" as defined in Rule 16b-3 and an "outside director" as
defined in the regulations under Section 162(m) of the Code.

         2.11 "Common Stock" means the Company's Common Stock, par value $.01
per share.

         2.12 "Company" means Chiquita Brands International, Inc.

         2.13 "Control" means the power to direct or cause the direction of the
management and policies of a corporation or other entity.

         2.14 "Director" means any person serving on the Board of Directors of
the Company or any of its Subsidiaries who is not an Officer (or officer) or
Employee of the Company or any Subsidiary.

         2.15 "Disability" means a "permanent and total disability" within the
meaning of Section 22(e)(3) of the Code, or in the case of an Employee, a
disability which qualifies as a long-term disability under the Company's Long
Term Disability insurance, or any other definition of disability adopted by the
Committee.

         2.16 "Effective Date" means March 19, 2002, the date upon which
Company's Plan of Reorganization under Chapter 11 of the Bankruptcy Code became
effective.

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         2.17 "Eligible Person" means any person who is either an Employee,
Director or Advisor.

         2.18 "Employee" means (i) any officer or employee of the Company or a
Subsidiary (including those employees on a temporary leave of absence approved
by the Company or a Subsidiary); or (ii) any person who has received and
accepted an offer of employment from the Company or a Subsidiary; or (iii) if
approved by the Committee, a person who at the request of the Company or a
Subsidiary accepts employment with any corporation or partnership in which the
Company has a direct or indirect substantial interest. Solely for purposes of
Section X, unless otherwise determined by the Committee, a person specified in
clause (iii) above shall be considered an employee of a Subsidiary.

         2.19 "Exchange Act" means the Securities Exchange Act of 1934.

         2.20 "Exempt Entity" means (i) an underwriter temporarily holding
securities pursuant to an offering of such securities and (ii) the Company, any
of its subsidiaries or any employee benefit plan (or related trust) sponsored or
maintained by the Company or any of its subsidiaries.

         2.21 "Fair Market Value" means, as of any date, (i) the average of the
highest and lowest quoted selling prices of a Share as reported on the New York
Stock Exchange Composite Tape (or such other consolidated transaction reporting
system on which the Shares are primarily traded) or, if the Shares were not
traded on such day, then the next preceding day on which the Shares were traded,
all as reported by such source as the Committee may select or (ii), if and to
the extent specified by the Committee with respect to any particular Award, the
average of the closing selling prices of a Share as so reported for a period of
not more than 30 consecutive trading days as specified by the Committee. If the
Shares are not traded on a national securities exchange or other market system,
Fair Market Value shall be determined in the manner established by the
Committee.

         2.22 "Immediate Family" means any child, stepchild, grandchild, spouse,
son-in-law or daughter-in-law and shall include adoptive relationships;
provided, however, that if the Committee adopts a different definition of
"immediate family" (or similar term) in connection with the transferability of
Stock Options awarded under this Plan, such definition shall apply, without
further action of the Board.

         2.23 "Incentive Stock Option" means any Stock Option awarded under
Section VII of this Plan intended to be and designated as an "Incentive Stock
Option" within the meaning of Section 422 of the Code or any successor
provision.

         2.24 "Non-Qualified Stock Option" means any Stock Option awarded under
Section VII of this Plan that is not an Incentive Stock Option.

         2.25 "Officer" means a person who has been determined to be an officer
of the Company under Rule 16a-1(f) in a resolution adopted by the Board and, for
purposes of Sections 10.1(a) and 10.2 shall also mean any other person who has
been elected an officer of the Company by the Board (other than a person who has
been elected solely as an assistant officer).

         2.26 "Option Price" or "Exercise Price" means the price per share at
which Common Stock may be purchased upon the exercise of an Option or an Award.

         2.27 "Participant" means an Eligible Person to whom an Award has been
made pursuant to this Plan.

         2.28 "Performance Award" means an Award granted pursuant to Section IX.

         2.29 "Replacement Option" means a Non-Qualified Stock Option granted
pursuant to Section 7.4 upon the exercise of a Stock Option granted pursuant to
the Plan where the Option Price is paid with previously owned shares of Common
Stock.

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         2.30 "Restricted Stock" means those shares of Common Stock issued
pursuant to a Restricted Stock Award which are subject to the restrictions set
forth in the related Award Agreement.

         2.31 "Restricted Stock Award" means an award of a fixed number of
Shares to a Participant which is subject to forfeiture provisions and other
conditions set forth in the Award Agreement.

         2.32 "Retirement" means any termination of an Employee's employment
with, or a Director's service on the Board of, the Company or a Subsidiary (in
each case other than by death, Disability or for Cause) by an Employee or a
Director who is (i) at least 65 years of age or (ii) at least 55 years of age
with at least 10 years of employment with, or service on the Board of, the
Company or a Subsidiary.

         2.33 "Rule 16b-3" and "Rule 16a-1(f)" mean Rules 16b-3 and 16a-1(f)
under the Exchange Act or any corresponding successor rules or regulations.

         2.34 "Share" means one share of the Company's Common Stock.

         2.35 "Stock Option" or "Option" means the right to purchase shares of
Common Stock (including a Replacement Option) granted pursuant to Section VII of
this Plan.

         2.36 "Subsidiary" means any corporation, partnership, joint venture, or
other entity (i) of which the Company owns or controls, directly or indirectly,
25% or more of the outstanding voting stock (or comparable equity participation
and voting power) or (ii) which the Company otherwise Controls (by contract or
any other means); except that when the term "Subsidiary" is used in the context
of an award of an Incentive Stock Option, the term shall have the same meaning
given to it in the Code.

         2.37 "Transfer" means alienation, attachment, sale, assignment, pledge,
encumbrance, charge or other disposition; and the terms "Transferred" or
"Transferable" have corresponding meanings.

         2.38 "Unrestricted Stock Award" means an Award granted pursuant to
Section 8.3.

         2.39 "Vest" means, in the case of any Award to become exercisable or
become free of restrictions solely as a result of either (i) the passage of
required time periods specified under the terms of the Award ("Passage of Time
Criteria") or (ii) the inapplicability of Passage of Time Criteria due to a
Change of Control or a termination of employment or service as a Director
pursuant to the provisions of Section X. For purposes of this Plan, "Vest" does
not refer to an Award becoming exercisable or free of restrictions due to the
attainment of performance criteria or any other criteria not solely related to
the passage of time ("Other Criteria"). An Award whose terms specify Other
Criteria that have not been fully satisfied at the time of a Change of Control
or termination of employment or service will not Vest (unless otherwise
determined by the Committee or specifically provided by such terms) as a result
of such Change of Control or termination (even if the terms of such Award
contain Passage of Time Criteria in addition to, in combination with, or as an
alternative to such Other Criteria).

                                  SECTION III.

                                 ADMINISTRATION

         3.1 The Committee. This Plan shall be administered and interpreted by
the Committee, except that any function of the Committee also may be performed
by the Board. Actions of the Committee may be taken by a majority of its members
at a meeting or by the unanimous written consent of all of its members without a
meeting.

         3.2 Powers of the Committee. The Committee shall have the power and
authority to operate, manage and administer the Plan on behalf of the Company,
which includes, but is not limited to, the power and authority:

                                       -4-

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                (i)   to grant to Eligible Persons one or more Awards consisting
         of any or a combination of Stock Options, Restricted Stock,
         Unrestricted Stock, and Performance Awards;

                (ii)  to select the Eligible Persons to whom Awards may be
         granted;

                (iii) to determine the types and combinations of Awards to be
         granted to Eligible Persons;

                (iv)  to determine the number of Shares or monetary units which
         may be subject to each Award;

                (v)   to determine the terms and conditions, not inconsistent
         with the terms of the Plan, of any Award (including, but not limited
         to, the term, price, exercisability, method of exercise and payment,
         any restriction or limitation on transfer, any applicable performance
         measures or contingencies, any vesting schedule or acceleration, or any
         forfeiture provisions or waiver, regarding any Award) and the related
         Shares, based on such factors as the Committee shall determine; and

                (vi)  to modify or waive any restrictions, contingencies or
         limitations contained in, and grant extensions to the terms or exercise
         periods of, or accelerate the vesting of, any outstanding Awards as
         long as such modifications, waivers, extensions or accelerations are
         not inconsistent with the terms of the Plan, but no such changes shall
         impair the rights of any Participant without his or her consent.

         3.3    Guidelines. The Committee will have the authority and discretion
to interpret the Plan and any Awards granted under the Plan, to establish,
amend, and rescind any rules and regulations relating to the Plan, and to make
all other determinations that may be necessary or advisable for the
administration of the Plan. Any interpretation of the Plan by the Committee and
any decision made by it under the Plan is final and binding on all persons. The
Committee may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or in any related Award Agreement in the manner and to
the extent it deems necessary to carry the Plan into effect.

         3.4    Delegation of Authority. The Committee may delegate to one or
more of the Company's Officers or (in the case of ministerial duties only) other
employees all or any portion of the Committee's authority, powers,
responsibilities and administrative duties under the Plan, with such conditions
and limitations as the Committee shall prescribe in writing; provided, however,
that only the Committee is authorized to grant Awards to, or make any decisions
with respect to Awards granted to, Officers. A record of all actions taken by
any Officer to whom the Committee has delegated a portion of its powers or
responsibilities shall be filed with the minutes of the meetings of the
Committee and shall be made available for review by the Committee upon request.

         3.5    Decisions Final. Any action, decision, interpretation or
determination by or at the direction of the Committee (or of any person acting
under a delegation pursuant to Section 3.4) concerning the application or
administration of the Plan shall be final and binding upon all persons and need
not be uniform with respect to its determination of recipients, amount, timing,
form, terms or provisions of Awards.

                                   SECTION IV.

                             SHARES SUBJECT TO PLAN

         4.1    Shares Available for Issuance of Awards. Subject to adjustment
as provided in Section 4.4, the aggregate number of Shares which may be issued
under this Plan shall not exceed 5,925,926 Shares. As determined from time to
time by the Committee, the Shares available under this Plan for

                                       -5-

<PAGE>

grants of Awards may consist either in whole or in part of authorized but
unissued Shares or Shares which have been reacquired by the Company following
original issuance.

         4.2 Maximum Shares Per Participant. The maximum number of shares that
may be covered by Options granted to any one individual shall be 2,000,000
shares during any one calendar-year period.

         4.3 Re-Use of Shares. If any Award granted under this Plan shall
expire, terminate or be forfeited or canceled for any reason before it has
vested or been exercised in full, the number of unissued or undelivered Shares
subject to such Award shall again be available for future grants. The Committee
may make such other determinations regarding the counting of Shares issued
pursuant to this Plan as it deems necessary or advisable, provided that such
determinations shall be permitted by law.

         4.4 Adjustment Provisions.

                (a) Adjustment for Change in Capitalization. If the Company
shall at any time change the number of issued Shares without new consideration
to the Company (such as by stock dividend, stock split, recapitalization,
reorganization, exchange of shares, liquidation, combination or other change in
corporate structure affecting the Shares) or make a distribution to shareholders
of cash or property, which in the Committee's sole judgment, has a substantial
impact on the value of outstanding Shares, the total number of Shares reserved
for issuance under the Plan, the number of Shares covered by each outstanding
Award, and the Option Price for each outstanding Award shall be proportionately
adjusted in such manner as the Committee in its sole judgment determines to be
equitable and appropriate.

                (b) Other Equitable Adjustments. Notwithstanding any other
provision of the Plan, and without affecting the number of Shares reserved or
available hereunder, the Committee may authorize the issuance, continuation or
assumption of Awards or provide for equitable adjustments or changes in the
terms of Awards, in connection with any merger, consolidation, sale of assets,
acquisition of property or stock, recapitalization, reorganization or similar
occurrence in which the Company is the continuing or surviving corporation, upon
such terms and conditions as it may deem equitable and appropriate.

                                   SECTION V.

                 CHANGE OF CONTROL; MERGER, CONSOLIDATION, ETC.

         5.1 Effect of Change of Control On Outstanding Awards. In the event of,
and upon a Change of Control, all Awards outstanding on the date of such Change
of Control shall become fully (100%) Vested.

         5.2 Termination of Employment After Change of Control. In the event
that an Employee's employment by the Company or a Subsidiary is terminated by
the Company or such Subsidiary for any reason, other than for Cause, within one
(1) year after a Change of Control, all of the outstanding Vested Stock Options
held by such Employee on the date of termination of employment shall be
exercisable for a period ending on the earlier to occur of the first anniversary
of the date of termination or the respective Expiration Dates of such Stock
Options.

         5.3 Merger, Consolidation, Etc. In the event that the Company shall,
pursuant to action by its Board of Directors, propose to (i) merge into,
consolidate with, sell or otherwise dispose of all or substantially all of its
assets, to another corporation or other entity and provision is not made
pursuant to the terms of such transaction for the assumption by the surviving,
resulting or acquiring corporation of outstanding Awards under the Plan, or the
substitution of new Awards therefor, or (ii) dissolve or liquidate, then (A) the
Committee shall cause written notice of such proposed transaction to be given to
each Participant not less than 30 days prior to the anticipated date of such
proposed transaction, and (B) all outstanding Awards that are not so assumed or
substituted for shall become fully (100%) Vested immediately prior, but subject,
to actual consummation of the transaction. Prior to a date specified in the
notice, which shall not be more than 3 days prior to the consummation of such
transaction, each

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Participant shall have the right to exercise all Stock Options held by such
Participant that are not so assumed or substituted for on the following basis:
(i) such exercise shall be conditioned on consummation of such transaction, (ii)
such exercise shall be effective immediately prior to the consummation of such
transaction, and (iii) the Option Price for such Stock Options shall not be
required to be paid until 7 days after written notice by the Company to the
Participant that such transaction has been consummated. If such transaction is
consummated, each Option, to the extent not previously exercised prior to the
date specified in the foregoing notice of proposed transaction, shall terminate
upon the consummation of such transaction. If such transaction is abandoned, (a)
any and all conditional exercises of Stock Options in accordance with this
Section 5.3 shall be deemed annulled and of no force or effect and (b) to the
extent that any Award shall have Vested solely by operation of this Section 5.3,
such Vesting shall be deemed annulled and of no force or effect and the Vesting
provisions of such Award shall be reinstated.

         5.4 Applicability of Section V. The provisions of Section V shall apply
to all Awards granted under the Plan, unless and to the extent that the
Committee expressly provides otherwise in the terms of an Award at the time it
is granted.

                                   SECTION VI.

                       EFFECTIVE DATE AND DURATION OF PLAN

         6.1 Effective Date. This Plan shall become effective on the Effective
Date.

         6.2 Duration of Plan. The Plan shall continue in effect indefinitely
until terminated by the Board pursuant to Section XI. Notwithstanding the
continued effectiveness of this Plan, no Incentive Stock Option shall be granted
under this Plan on or after the tenth anniversary of the effective date of the
Plan.

                                   SECTION VII.

                                  STOCK OPTIONS

         7.1 Grants. Stock Options may be granted alone or in addition to other
Awards granted under this Plan. Each Option granted shall be designated as
either a Non-Qualified Stock Option or an Incentive Stock Option. One or more
Stock Options may be granted to any Eligible Person, except that only
Non-Qualified Stock Options may be granted to any Director of or Advisor to the
Company.

         7.2 Terms of Options. Except as otherwise required by Sections 7.3 and
7.4, Options granted under this Plan shall be subject to the following terms and
conditions and shall be in such form and contain such additional terms and
conditions, not inconsistent with the terms of this Plan, as the Committee shall
deem desirable:

                  (a) Option Price. The Option Price per share of Common Stock
purchasable under a Stock Option shall be determined by the Committee at the
time of grant, except that no Stock Option may be granted to an Officer, and no
Incentive Stock Option may be granted to any Eligible Person, for an Option
Price less than 100% of Fair Market Value on the Grant Date.

                  (b) Option Term. The Term of each Stock Option shall be fixed
by the Committee, but no Stock Option shall be exercisable more than ten (10)
years after its Award Date.

                  (c) Exercisability. A Stock Option shall be exercisable at
such time or times and subject to such terms and conditions as shall be
specified in the Award Agreement; provided, however, that an Option may not be
exercised as to less than one hundred (100) Shares at any time unless the

                                       -7-

<PAGE>

number of Shares for which the Option is exercised is the total number available
for exercise at that time under the terms of the Option.

                  (d) Method of Exercise. Stock Options may be exercised in
whole or in part at any time during the Option Term by giving written notice of
exercise to the Company specifying the number of Shares to be purchased. Such
notice shall be accompanied by payment in full of the Option Price in cash
unless some other form of consideration is approved by the Committee at or after
the grant. Payment in full or in part also may be made in the form of Shares of
Common Stock owned by the Participant for at least six (6) months prior to
exercise, which Shares shall be valued at the Fair Market Value of the Common
Stock on the Exercise Date.

                  (e) Cashless Exercise. A Participant may elect to pay the
Exercise Price upon the exercise of an Option by authorizing a broker to sell
all or a portion of the Shares acquired upon exercise of the Option and remit to
the Company a sufficient portion of the sale proceeds to pay the entire Exercise
Price and any tax withholding resulting from such exercise.

                  (f) Non-Transferability of Options. Stock Options shall be
Transferable only to the extent provided in Section 12.3 of this Plan.

                  (g) Termination. Stock Options shall terminate in accordance
with Section X of this Plan.

                  (h) Buyout and Settlement Provisions. The Committee may at any
time offer to buy out an Option previously granted, based on such terms and
conditions as the Committee shall establish. The Committee may also substitute
new Stock Options for previously granted Stock Options having higher Option
Prices than the new Stock Options being substituted therefor.

         7.3 Incentive Stock Options. Incentive Stock Options shall be subject
to the following terms and conditions:

                  (a) Award Agreement. Any Award Agreement relating to an
Incentive Stock Option shall contain such terms and conditions as are required
for the Option to be an "incentive stock option" as that term is defined in
Section 422 of the Code.

                  (b) Ten Percent Shareholder. An Incentive Stock Option shall
not be awarded to any person who, at the time of the Award, owns or is deemed to
own (by reason of attribution rules of Section 424(d) of the Code) Shares
possessing more than ten percent (10%) of the total combined voting power of all
classes of stock of the Company, its parent, and its Subsidiaries.

                  (c) Qualification under the Code. Notwithstanding anything in
this Plan to the contrary, no term of this Plan relating to Incentive Stock
Options shall be interpreted, amended or altered, nor shall any discretion or
authority granted under this Plan be exercised, so as to disqualify this Plan
under Section 422 of the Code, or, without the consent of an affected
Participant, to disqualify any Incentive Stock Option under Section 422 of the
Code, except as may result in the event of a Change of Control.

                  (d) Notification of Disqualifying Disposition. Each Award
Agreement with respect to an Incentive Stock Option shall require the
Participant to notify the Company of any disposition of Shares of Common Stock
issued pursuant to the exercise of such Option under the circumstances described
in Section 421(b) of the Code (relating to certain disqualifying dispositions),
within ten (10) days of such disposition.

         7.4 Replacement Options. The Committee may provide at the time of grant
that an Option shall include the right to acquire a Replacement Option upon the
exercise of such Option (in whole or in part) prior to an Employee's termination
of employment if the payment of the Option Price is paid in Shares. In addition
to any other terms and conditions the Committee deems appropriate, the
Replacement Option shall be subject to the following terms:

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                  (a) Number of Shares. The number of Shares subject to the
Replacement Option shall not exceed the number of whole Shares used to satisfy
the Option Price (whether by delivery of Shares to the Company or by reduction
of Shares otherwise deliverable to the Participant on exercise) of the original
Option and the number of whole Shares, if any, used to satisfy the payment for
withholding taxes (whether by such delivery or such reduction) in accordance
with Section 12.6.

                  (b) Grant Date. The Replacement Option Grant Date will be the
date of the exercise of the original Option.

                  (c) Option Price. The Option Price per share shall be the Fair
Market Value of a Share on the Replacement Option Grant Date.

                  (d) Vesting. The Replacement Option shall be exercisable no
earlier than one (1) year after the Replacement Option Grant Date.

                  (e) Term. The Term of the Replacement Option will not extend
beyond the Term of the original Option.

                  (f) Non-Qualified. The Replacement Option shall be a
Non-Qualified Stock Option.

                                  SECTION VIII.

                    RESTRICTED AND UNRESTRICTED STOCK AWARDS

         8.1 Grants of Restricted Stock Awards. The Committee may, in its
discretion, grant one or more Restricted Stock Awards to any Eligible Person.
Each Restricted Stock Award shall specify the number of Shares to be issued to
the Participant, the date of such issuance, the price, if any, to be paid for
such Shares by the Participant and the restrictions imposed on such Shares. The
Committee may grant Awards of Restricted Stock subject to the attainment of
specified performance goals, continued employment or such other limitations or
restrictions as the Committee may determine.

         8.2 Terms and Conditions of Restricted Awards. Restricted Stock Awards
shall be subject to the following provisions:

                  (a) Issuance of Shares. Shares of Restricted Stock may be
issued immediately upon grant or upon vesting as determined by the Committee.

                  (b) Stock Powers and Custody. If shares of Restricted Stock
are issued immediately upon grant, the Committee may require the Participant to
deliver a duly signed stock power, endorsed in blank, relating to the Restricted
Stock covered by such an Award. The Committee may also require that the stock
certificates evidencing such Shares be held in custody by the Company until the
restrictions on them shall have lapsed.

                  (c) Shareholder Rights. Unless otherwise determined by the
Committee at the time of grant, Participants receiving Restricted Stock Awards
shall not be entitled to dividend or voting rights for the Restricted Shares
until they are fully vested.

         8.3 Unrestricted Stock Awards. The Committee may make Awards of
unrestricted Common Stock to (i) Eligible Persons in recognition of outstanding
achievements or contributions by such persons or (ii) Directors for service on
the Board. Unrestricted Shares issued under this Section 8.3 may be issued for
no cash consideration.

                                       -9-

<PAGE>

                                   SECTION IX.

                               PERFORMANCE AWARDS

         9.1  Performance Awards. The Committee may, in its discretion, grant
Performance Awards to Eligible Persons in accordance with the following terms
and conditions:

                  (a) Grant. A Performance Award shall consist of the right to
receive either (i) Common Stock or cash of an equivalent value, or a combination
of both, at the end of a specified Performance Period (defined below) or (ii) a
fixed-dollar amount payable in cash or Shares, or a combination of both, at the
end of a specified Performance Period. The Committee shall determine the
Eligible Persons to whom and the time or times at which Performance Awards shall
be granted, the number of Shares or the amount of cash to be awarded to any
person, the duration of the period (the "Performance Period") during which, and
the conditions under which, a Participant's Performance Award will vest, and the
other terms and conditions of the Performance Award in addition to those set
forth in Section 9.2.

                  (b) Criteria for Awards. The Committee may condition the grant
or vesting of a Performance Award upon the attainment of specified performance
goals, including, but not limited to, appreciation in the Fair Market Value,
book value or other measure of value of the Common Stock, the performance of the
Company based on earnings or cash flow.

         9.2  Terms and Conditions of Performance Awards. Performance Awards
granted pursuant to this Section IX shall be subject to the following terms and
conditions:

                  (a) Dividends. Unless otherwise determined by the Committee at
the time of the grant of the Award, amounts equal to any dividends declared
during the Performance Period with respect to any Shares covered by a
Performance Award will not be paid to the Participant.

                  (b) Payment. Subject to the provisions of the Award Agreement
and this Plan, at the expiration of the Performance Period, share certificates,
cash or both (as the Committee may determine) shall be delivered to the
Participant, or his or her legal representative or guardian, in a number or an
amount equal to the vested portion of the Performance Award.

                  (c) Non-Transferability. Performance Awards shall not be
Transferable except in accordance with the provisions of Section 12.3 of this
Plan.

                  (d) Termination of Employment. Subject to the applicable
provisions of the Award Agreement and this Plan, upon termination of a
Participant's employment with the Company or a Subsidiary for any reason during
the Performance Period for a given Award, the Performance Award in question will
vest or be forfeited in accordance with the terms and conditions established by
the Committee.

                                   SECTION X.

                              TERMINATION OF AWARDS

         10.1 Termination of Awards to Employees and Directors. Subject to the
provisions of Section 10.2, all Awards issued to Employees and Directors under
this Plan shall terminate as follows:

                  (a) Termination by Death, Disability or Retirement. Unless
otherwise determined by the Committee at the time of grant, if an Employee's
employment by, or a Director's service on the board of, the Company or a
Subsidiary terminates by reason of death, Disability or Retirement, any Awards
held by such Participant shall become fully Vested and, in the case of Stock
Options, may thereafter be exercised by the Participant or by the Participant's
beneficiary or legal representative, for a period of three

                                      -10-

<PAGE>

(3) years (or such longer period as the Committee or, except in the case of
Participants who are Officers, the Chief Executive Officer of the Company may
specify at or after grant) after the date of such termination of employment or
service or until the expiration of the stated term of such Award, whichever
period is shorter.

                  (b) Termination For Cause. If an Employee's employment by, or
a Director's service on the board of, the Company or a Subsidiary is terminated
for Cause, or if after such termination such Participant engages in any act
which would have warranted a termination of such employment or service for
Cause, such Participant shall forfeit all of his or her rights to any
outstanding Awards which have not been exercised and all of such unexercised
Awards shall terminate upon the earlier to occur of the date of termination of
such employment or service or the date upon which the Participant has engaged in
any of the conduct described as justifying such a termination for Cause.

                  (c) Other Termination. Unless otherwise determined by the
Committee at the time of grant, if an Employee's employment by, or a Director's
service on the board of, the Company or a Subsidiary terminates for any reason
other than death, Disability, Retirement, or for Cause, all of such
Participant's Vested or otherwise exercisable Stock Options will terminate on
the earlier to occur of the stated expiration date of the Awards or ninety (90)
calendar days after such termination of employment or service. If a Participant
dies during the ninety (90) day period following the termination of the
employment or directorship, any unexercised Award held by the Participant shall
be exercisable, to the full extent that such Award was exercisable at the time
of death, for a period of one (1) year from the date of death or until the
expiration of the stated term of the Award, whichever occurs first.

         10.2 Acceleration of Vesting and Extension of Exercise Period Upon
Termination. Upon the termination of a Participant's employment or directorship
with the Company or any of the Company's Subsidiaries, excluding, however, any
Participant who has been terminated for Cause, either the Committee or, unless
the Committee determines otherwise, the Chief Executive Officer may in its or
his sole discretion:

                  (a) Accelerate the Vesting of, or otherwise cause to be
exercisable or free of restrictions, all or part of any Awards held by such
terminated Participant so that such Awards will be fully or partially
exercisable as of the date of termination of employment or such other date as
the Committee or Chief Executive Officer may choose; and

                  (b) Extend the exercise period of all or part of any Stock
Options held by such terminated Participant for up to five years from the date
of termination (whether such termination was because of death, Disability,
Retirement or otherwise) but in no event longer than the original expiration
date of such Award;

provided, however, that no person or entity other than the Committee shall have
the authority or discretion to accelerate the Vesting of, otherwise cause to be
exercisable or free of restrictions, or extend the exercise period of, any Award
granted to an Officer or Director of the Company.

         10.3 Buyout and Settlement of Awards. The Committee may at any time
offer to buy out an Award (of any type or kind) previously granted, based on
such terms and conditions as the Committee shall establish. The Committee may
also substitute new Awards for previously granted Awards with the new Awards
containing different terms and conditions, including different exercise prices,
than those contained in the Awards being replaced.

                                      -11-

<PAGE>

                                   SECTION XI.

                      TERMINATION OR AMENDMENT OF THIS PLAN

         11.1 Termination or Amendment. The Board may at any time, amend, in
whole or in part, any or all of the provisions of this Plan, or suspend or
terminate it entirely; provided, however, that, unless otherwise required by
law, the rights of a Participant with respect to any Awards granted prior to
such amendment, suspension or termination may not be impaired without the
consent of such Participant. In addition, no amendment may be made without first
obtaining shareholder approval if such amendment would increase the maximum
number of Shares which may be granted to any individual Participant, or increase
the total number of Shares available for issuance under this Plan.

                                  SECTION XII.

                               GENERAL PROVISIONS

         12.1 No Right to Continued Employment. The adoption of this Plan and
the granting of Awards hereunder shall not confer upon any Employee the right to
continued employment nor shall it interfere in any way with the right of the
Company or any Subsidiary to terminate the employment or directorship,
respectively, of any Employee at any time.

         12.2 Awards to Persons Outside the United States. To the extent
necessary or appropriate to comply with foreign law or practice, the Committee
may, without amending this Plan: (i) establish special rules applicable to
Awards granted to Eligible Persons who are either or both foreign nationals or
employed outside the United States, including rules that differ from those set
forth in this Plan, and (ii) grant Awards to such Eligible Persons in accordance
with those rules.

         12.3 Non-Transferability of Awards. Except as otherwise provided by the
Committee at or after grant, no Award or benefit payable under this Plan shall
be Transferable by the Participant during his or her lifetime, nor may it be
assigned, exchanged, pledged, transferred or otherwise encumbered or disposed of
except by will or the laws of descent and distribution; and no Award shall be
exercisable by anyone other than the Participant or the Participant's guardian
or legal representative during such Participant's lifetime. The Committee may in
its sole discretion permit a Participant to transfer a Non-Qualified Stock
Option for no consideration to or for the benefit of the Participant's Immediate
Family (including, without limitation, to a trust for the benefit of the
Participant's Immediate Family or to a partnership or limited liability company
for one or more members of the Participant's Immediate Family), subject to such
limits as the Committee may establish, and the transferee shall remain subject
to all the terms and conditions applicable to such Award.

         12.4 Other Plans. In no event shall the value of, or income arising
from, any Awards issued under this Plan be treated as compensation for purposes
of any pension, profit sharing, life insurance, disability or other retirement
or welfare benefit plan now maintained or hereafter adopted by the Company or
any Subsidiary, unless such plan specifically provides to the contrary.

         12.5 Unfunded Plan. This Plan is not a "Retirement Plan" or "Welfare
Plan" under the Employee Retirement Income Security Act of 1974, as amended.
This Plan shall be unfunded and shall not create (or be construed to create) a
trust or a separate fund or funds. This Plan shall not establish any fiduciary
relationship between the Company and any Participant or any other person. To the
extent any person holds any rights by virtue of an Award granted under this
Plan, such rights shall be no greater than the rights of an unsecured general
creditor of the Company.

         12.6 Withholding of Taxes. The Company shall have the right to deduct
from any payment to be made pursuant to this Plan, or to otherwise require,
prior to the issuance or delivery of any Shares or the payment of any cash to a
Participant, payment by the Participant of any Federal, state, local or foreign

                                      -12-

<PAGE>

taxes which the Company reasonably believes are required by law to be withheld.
The Committee may permit all or a portion of any such withholding obligation
(not exceeding the minimum amount required to be so withheld) to be satisfied by
reducing the number of shares otherwise deliverable or by accepting the delivery
of Shares previously owned by the Participant, which Shares shall be valued at
the Fair Market Value of the Common Stock on the exercise date. Any fraction of
a Share required to satisfy such tax obligations shall be disregarded and the
amount due shall be paid instead in cash by the Participant. The Company may
also withhold from any future earnings of salary, bonus or any other payment due
to the Participant the amount necessary to satisfy any outstanding tax
obligations related to the grant or exercise of any Award granted pursuant to
this Plan.

         12.7  Reimbursement of Taxes. The Committee may provide in its
discretion that the Company may reimburse a Participant for Federal, state,
local and foreign tax obligations incurred as a result of the grant or exercise
of an Award issued under this Plan.

         12.8  Governing Law. This Plan and all actions taken in connection with
it shall be governed by the laws of the State of Ohio, without regard to the
principles of conflict of laws.

         12.9  Liability. No employee of the Company nor member of the Committee
or the Board shall be liable for any action or determination taken or made in
good faith with respect to the Plan or any Award granted hereunder and, to the
fullest extent permitted by law, all employees and members of the Committee and
the Board shall be indemnified by the Company for any liability and expenses
which they may incur through any claim or cause of action arising under or in
connection with this Plan or any Awards granted under this Plan.

         12.10 Successors. All obligations of the Company under this Plan shall
be binding upon and inure to the benefit of any successor to the Company,
whether the existence of such successor is the result of a direct or indirect
purchase, merger, consolidation, or otherwise, of all or substantially all of
the business, stock, and/or assets of the Company.

                                      -13-

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