Exhibit 10.7
SUNOCO, INC.
PENSION RESTORATION PLAN
Amended and Restated effective June 1,
2008
PURPOSE
Sunoco, Inc. (the
“Company”) hereby amends and restates this Pension
Restoration Plan effective June 1, 2008 for the purpose of
providing to Participants (as hereinafter defined) retirement
benefits which would otherwise be provided by either the Sunoco,
Inc. Retirement Plan or the Puerto Rico Sun Oil Company Retirement
Plan but for the restrictions on benefits payable under these plans
by Sections 401(a)(17) and 415 of the Code. This Plan is intended
to constitute an “excess benefit plan” within the
meaning of Section 3(36) of the Employee Retirement Income
Security Act of 1974, as amended, (“ERISA”) and an
unfunded plan maintained primarily to provide deferred compensation
for a select group of management or highly compensated employees
within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of
ERISA.
ARTICLE I
DEFINITIONS
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1.01
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“Actuarial Equivalent” means a
benefit of equivalent current value to the benefit which would
otherwise have been provided to the Participant, determined on the
same basis as determined under the Applicable Sunoco Retirement
Plan.
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1.02
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“Affiliated Company” means the
Company and:
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(a)
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Any other
corporation which is included within a “controlled group of
corporations” within which Sunoco, Inc., is also included as
determined under Section 1563 of the 1954 Internal Revenue
Code without regard to subsections (a)(4) and (e)(3)(C) of said
Section 1563;
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(b)
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Any other
trades or businesses (whether or not incorporated) which, based on
principles similar to those defining a “controlled group of
corporations” for purposes of (a) above, are under
common control; and
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(c)
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Any other
organization so designated by the Board Committee.
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1.03
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“Applicable Sunoco Retirement Plan”
means the Sunoco, Inc. Retirement Plan or the Puerto Rico Sun Oil
Company Retirement Plan, whichever plan the Participant will
receive benefits under.
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1.04
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“Beneficiary” means the person or
persons, other than a contingent annuitant, designated by a
Participant or retired Participant pursuant to Article
IV.
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1.05
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“Board of
Directors” means the Board of Directors of Sunoco,
Inc.
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1.06
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“Board
Committee” means those individual Directors who have been
appointed by the Board of Directors with the powers and
responsibilities specified in Article V and to which has been
delegated any fiduciary responsibilities of the Board of Directors
with respect to the Plan.
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1.07
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“Code” means the Internal Revenue
Code of 1986, as amended.
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1.08
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“Company” means Sunoco, Inc. or any
corporation which succeeds to the position of Sunoco, Inc. as
common parent of the Sun Affiliated Group, within the meaning of
regulations issued under the Internal Revenue Code.
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1.09
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“Effective Date” means
September 2, 1974; as to this amendment and restatement,
June 1, 2008; and as to any amendment, the effective date
specified by the Board of Directors.
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1.10
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“Employee” means any individual who
is employed by the Company or an Affiliated Company.
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1.11
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“Participant” means any Employee who
is a participant in an Applicable Sunoco Retirement Plan, who:
(i) has had his retirement benefit under that plan reduced due
to Statutory Limitations or (ii) has received Restricted Stock
Unit Income.
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1.12
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“Plan” means the Sunoco, Inc.
Pension Restoration Plan as set forth in this document and as it
may from time to time be amended.
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1.13
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“Plan
Administrator” means the individual or entity designated as
such by the Board Committee pursuant to Article V.
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1.14
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“Plan
Year” means the annual period beginning on January 1 of
any year and ending on the following December 31.
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1.15
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“Spouse” means the individual who is
the legally married husband or wife of a Participant.
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1.16
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“Statutory Limitations” means the
limitations placed on the benefits that can be accrued under a
qualified pension plan pursuant to Section 401(a)(17) and 415
of the Code.
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1.17
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“Termination Date” means the date on
which a Participant separates from service as defined in Code
Section 409A and the regulations promulgated thereunder.
Notwithstanding the foregoing, pursuant to Treasury Regulation
Section 1.409A-1(h)(1)(ii), where it is reasonably anticipated
that there will be a permanent reduction in the level of bona fide
services of the Participant after a certain date to 49% or less of
the average level of bona fide services performed by the
Participant during the immediately preceding 12 months, such
Participant shall be treated for purposes of this Plan as having on
such date a termination of employment and a separation from
service.
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ARTICLE II
CONTRIBUTIONS
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2.01
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Employer
Contributions . All
benefits payable under this Plan will be paid by the Company. A
Participant will have no right, title or interest whatsoever in or
to any investments which the Company may make to aid in meeting
such obligations as may arise under the Plan. Nothing contained in
the Plan, nor any action taken pursuant to its provisions, will
create or be construed to create a trust or a fiduciary
relationship between the Company and any Participant or any other
person. To the extent that any person acquires a right to benefits
under this Plan, such right will be no greater than the right of an
unsecured general creditor of the Company. All payments to be made
under the Plan will be paid from the general funds of the Company
and no special or separate fund will be established and no
segregation of assets will be made to assure payment of such
amounts.
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2.02
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Participant
Contributions . No
contributions by Participants will be required or permitted under
this Plan.
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2.03
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Expenses of
Administration . All
expenses of administering this Plan will be paid by the
Company.
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ARTICLE III
RETIREMENT BENEFITS
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3.01
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Amount of
Benefits . Benefits under
the Plan will be determined as follows effective January 1,
2005.
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(a)
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Except as
provided in Section 3.01(b), the benefit payable to a
Participant or his Beneficiary will be equal to the excess
of:
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(i)
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The benefits
which would have been paid to the Participant or his Beneficiary
under the Applicable Sunoco Retirement Plan, if the provisions of
that plan were administered without regard to the Statutory
Limitations, over
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(ii)
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The benefits
payable to the Participant or his Beneficiary under the Applicable
Sunoco Retirement Plan.
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3
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(b)
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In the case of
a Participant who is eligible for a benefit determined under
Section 3.10 of the Sunoco, Inc. Retirement Plan or
Section 6.11 of the Puerto Rico Sun Oil Company Retirement
Plan (i.e., a “Rule of 60” benefit) on his Termination
Date, and has not commenced such benefit at the time that benefits
under this Plan commence, the benefit payable to a Participant or
his Beneficiary will be equal to the excess of:
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(i)
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The benefit
expressed as an Actuarial Equivalent lump sum that would be paid to
the Participant or his Beneficiary under Section 3.10 of the
Sunoco, Inc. Retirement Plan or Section 6.11 of the Puerto
Rico Sun Oil Company Retirement Plan at age 55, if the provisions
of that plan were administered without regard to the Statutory
Limitations, over
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(ii)
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The benefit
expressed as an Actuarial Equivalent lump sum that would be paid to
the Participant or his Beneficiary under Section 3.10 of the
Sunoco, Inc. Retirement Plan or Section 6.11 of the Puerto
Rico Sun Oil Company Retirement Plan at age 55.
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The benefit determined under this
Section 3.01(b) will be discounted to the date of commencement
of benefits under the Plan using the same interest rate used in
determining the Actuarial Equivalent lump sum under this
Section 3.01(b).
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3.02
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Normal Form
of Payment . Effective
for benefits commencing on or after January 1, 2005,
retirement benefits under this Plan will be in the form of a lump
sum payment of the Actuarial Equivalent of the benefit determined
under Section 3.01, except as otherwise provided
below.
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(a)
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Participants
with a Termination Date before April 1, 2005 may elect an
optional form of retirement income as provided in Article
IV.
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(b)
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A Participant
may elect an optional form of retirement income for retirement
benefits that are not in pay status and not otherwise payable
before January 1, 2009, as provided in Article IV.
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(c)
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An individual
who first becomes a Participant on or after January 1, 2008,
may elect an optional form of retirement income as provided in
Article IV.
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3.03
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Commencement
of Payments . The
following provisions are effective November 1,
2007.
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