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15. Management Incentive Plans
Sunoco’s principal management incentive plans are the Executive Incentive Plan (“EIP”) and the Long-Term Perform-
ance Enhancement Plan II (“LTPEP II”). The EIP provides for the payment of annual cash incentive awards while the
LTPEP II provides for the award of stock options, common stock units and related rights to directors, officers and other
key employees of Sunoco. The options granted under LTPEP II have a 10-year term, are not exercisable until two years
after the date of grant and permit optionees to purchase Company common stock at its fair market value on the date
of grant. LTPEP II authorizes the use of eight million shares of common stock for awards. No awards may be granted
under LTPEP II after December 31, 2008, unless the Board extends this date to a date no later than December 31, 2013.
The following table summarizes information with respect to common stock option awards under Sunoco’s manage-
ment incentive plans as well as the Employee Option Plan:
Management Incentive Plans Employee Option Plan*
Shares
Under
Option
Weighted-
Average
Option Price
Per Share
Shares
Under
Option
Option
Price
Per Share
Outstanding, December 31, 2002 9,062,620 $ 15.64 318,408 $14.00
Granted 1,009,600 $ 24.40 —
Exercised (3,606,620) $ 15.16 (187,390) $14.00
Canceled (65,520) $ 18.97 (83,238) $14.00
Outstanding, December 31, 2003 6,400,080 $ 17.27 47,780 $14.00
Granted 821,200 $ 41.28 —
Exercised (4,454,192) $ 16.01 (47,780) $14.00
Canceled — —
Outstanding, December 31, 2004 2,767,088 $ 26.42 —
Granted 373,700 $77.54 —
Exercised (1,612,482) $20.39 —
Canceled ——
Outstanding, December 31, 2005 1,528,306 $45.27 —
Exercisable, December 31
2003 3,928,760 $ 16.23 47,780 $14.00
2004 936,288 $ 15.56 —
2005 333,406 $18.94 —
Available for Grant, December 31, 2005 4,011,845 —
*Options were granted to employees (other than executives) during 1993 and 1994.
The following table provides additional information concerning all options outstanding at December 31, 2005:
Options Outstanding Options Exercisable
Range of Exercise Prices
Shares Under
Option
Weighted-
Average
Remaining
Contractual
Life (Years)
Weighted-
Average
Exercise
Price
Shares
Under
Option
Weighted-
Average
Exercise
Price
$12.63—$19.94 207,406 5 $15.56 207,406 $15.56
$24.51 126,000 8 $24.51 126,000 $24.51
$41.28 821,200 9 $41.28 —
$77.54 373,700 10 $77.54 —
$12.63—$77.54 1,528,306 9 $45.27 333,406 $18.94
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