Document:

sun-ex102_200.htm

 

Exhibit 10.2

NON-SOLICIT/NON HIRE AGREEMENT 

AND FULL RELEASE OF CLAIMS

This Non-Solicit/Non-Hire Agreement and Full Release of Claims (the "Agreement") is by and between Sunoco LP and its and their subsidiaries and affiliates (“Sunoco” or “Employer”) and Clare P. McGrory ("Employee").

WHEREAS, Employee, on September 18, 2015, informed Sunoco that she was resigning from her current position as Executive Vice President, Chief Financial Officer and Treasurer of Sunoco’s general partner to pursue a different career opportunity;

WHEREAS, in connection with her departure Sunoco has requested that the Employee agree to a release of claims and certain restrictive covenants in exchange for the consideration described herein;  

WHEREAS, in order to achieve a final and amicable resolution of the employment relationship in all its aspects, Employer has agreed to make payments under this Agreement to which Employee is not otherwise entitled under any policy, practice, agreement or other understanding.

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth in this Agreement and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

	
 
	
1.
	
Separation from Employment.  Employee’s employment with Employer will terminate effective October 30, 2015 (the "Termination Date").  

	
 
	
2.
	
Consideration.  

	
 
	
(a)
	
As consideration for Employee’s promises made in this Agreement, including Employee’s full release of claims in Section 4 of this Agreement, Employer agrees to the following:

	
 
	
(i)
	
Employer agrees to pay Employee a release payment (“Release Payment”) in a lump sum total gross amount equal to Ten Thousand ($10,000.00) Dollars; less all required government payroll deductions and withholdings.  The Release Payment shall be made within ten (10) business days after the Effective Date (as that term is defined in Section 4 below). Employee shall be entitled to receive the Release Payment after the Employee, in a timely manner without revocation, executes this Agreement and the Supplemental Release and not before.  

	
 
	
(b)
	
As consideration for Employee’s agreement to be bound by the restrictive covenants found in Section 7 of this Agreement, Employer agrees to the following:

	
 
	
(i)
	
Employer agrees to pay Employee a payment in a total gross amount equal to One Hundred Fifty-Six Thousand Six Hundred and Eighteen Dollars and Thirty-Six Cents ($156,618.36), less all required government payroll deductions and withholdings (the “Restrictive Covenant Payment”).  The Restrictive Covenant Payment shall be made within ten (10) business days after the Effective Date as defined herein.  Employee specifically acknowledges and agrees that if the restrictive covenants found in Section 7 are determined to be invalid or unenforceable for any reason whatsoever by a court of competent jurisdiction in an action between Employee and Employer, then Employer’s promises in this Section 2(b)(i) shall fail for lack of consideration and immediately be null and void, and any payments already paid hereunder shall be returned or reimbursed by Employee to Employer.  

The consideration given to Employee hereunder is expressly and completely conditioned upon Employee's full compliance with the terms and conditions set forth in this Agreement. Employer hereby expressly reserves any and all rights and remedies available at law or in equity in the event of a breach or threatened breach of this Agreement by the Employee.

	
 
	
3.
	
No Additional Benefits. Employee agrees that this Agreement resolves any and all outstanding issues arising from Employee’s employment. Employee further acknowledges and agrees that Employee shall receive no other compensation or benefits from Employer other than those set forth above, including under the Energy Transfer Partners GP, L.P. Severance Plan (the “ETP Severance Plan”), the Second Amended and Restated Energy Transfer Partners, L.P. 2008 Long Term Incentive Plan (“ETP Unit Plan”), the Sunoco 2012 Long Term Incentive Plan (“Sunoco Unit Plan”) and/or the Energy Transfer Partners. L.L.C. Annual Bonus Plan (the “Bonus Plan”).  

 

 

	
 
		
However, Employee shall retain her rights to be paid her base salary and accrued vacation through the Termination Date, to be reimbursed for business expenses incurred through the Termination Date (with such business expenses to be reimbursed in accordance with the Employer’s standard business reimbursement policy), to vested units under the ETP Unit Plan, and vested interest and vested rights that Employee may otherwise have under any employee benefit plan sponsored by Employer (including any required COBRA continuation coverage under Section 4980B of the Internal Revenue Code of 1986, as amended), subject to the terms and conditions of such plan. The Employee further understands, acknowledges and specifically agrees that any and all unvested awards/restricted units to the Employee outstanding under the ETP Unit Plan and the Sunoco Unit Plan shall be terminated and cancelled as of the Termination Date.     

	
 
	
4.
	
Release of Claims.  Employee stipulates, agrees, and understands that for and in consideration of the mutual covenants set forth in this Agreement, specifically including the payments and considerations set forth in Section 2 above, the same being good and valuable consideration, Employee hereby acting of Employee’s own free will, voluntarily and on behalf of herself, Employee’s heirs, administrators, executors, successors and assigns, RELEASES, ACQUITS and forever DISCHARGES Employer and Employer’s parent entities, specifically including Energy Transfer Equity, L.P., Energy Transfer Partners, L.P., Sunoco, Inc. and its and their respective past and present subsidiaries, affiliates, partners, directors, officers, owners, shareholders, employees, benefit plans, benefit plan fiduciaries, predecessors, joint employers, successor employers and agents, and each of them (collectively "Released Parties"), of and from any and all debts, obligations, claims, counterclaims, demands, judgments and/or causes of action of any kind whatsoever, including under the ETP Severance Plan, the ETP Unit Plan, the Sunoco Unit Plan and/or , the Bonus Plan (whether known or unknown, in tort, contract, at law or in equity, by statute or regulation, or on any basis), based on facts occurring at any time before, or at the time of, Employee's signing of this Agreement, for any damages or other remedies of any kind, including, without limitation, direct or indirect, consequential, compensatory, actual, punitive, or any other damages, attorneys' fees, expenses, reimbursements, costs of any kind or reinstatement.  This release includes, but is not limited to, any and all rights or claims, demands and/or causes of action arising out of Employee’s employment or termination from employment with Employer, or relating to purported employment discrimination, retaliation or violations of civil rights, if any, including, but not limited to, claims arising under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Civil Rights Act of 1866 and/or 1871, the Age Discrimination in Employment Act ("ADEA"), the Older Workers Benefit Protection Act of 1990, the Americans With Disabilities Act of 1990, Executive Order 11246, the Equal Pay Act of 1963, the Rehabilitation Act of 1973, the Family and Medical Leave Act, the Sarbanes-Oxley Act of 2002, or any other applicable federal, state, or local statute or ordinance or any other claim, whether statutory or based on common law, arising by reason of Employee’s employment with Employer or the termination of such employment or circumstances related thereto, or by reason of any other matter, cause, or thing whatsoever, from the first date of employment with Employer to the date and time of execution of this Agreement. Notwithstanding the preceding, nothing in this Agreement is intended to waive or otherwise release Employee’s right to: (i) coverage under the Employer’s director and officer insurance policies, if any; (ii) defense and indemnification under the Employer’s organizational documents and/or internal policies or, for events related to her period of employment with the Employer, as may be applicable; (iii) any claims arising from breach of this Agreement by the Employer (including but not limited to claims for compensation and benefits described in Section 3 above), and (iv) any claims that cannot be waived by law.

Employee has a period of forty-five (45) days in which to consider this Agreement and Exhibit A.  Employee may choose to sign this Agreement prior to the expiration of the forty-five (45) day period, but is not required to do so.  Once Employee signs the Agreement, Employee shall have a period of seven (7) days from the date Employee signs the Agreement to revoke the Agreement.  The Agreement shall not become effective or enforceable until the eighth day after Employee signs the Agreement (the "Effective Date").  To revoke this Agreement, Employee must provide written notice of revocation to Employer at Attention: Christopher Curia, Executive Vice President and Chief Human Resources Officer, 8111 Westchester, Suite 600, Dallas, Texas or by email to chris.curia@energytransfer.com, prior to the expiration of the seven (7) day revocation period.  No payments under this Agreement shall be due until the expiration of the seven (7) day revocation period.  Employer hereby advises Employee to consult with an attorney concerning this Agreement prior to signing the Agreement.  Please note, as described in Section 5 below, that the Supplemental Release may not be executed prior to the Termination Date.

	
 
	
5.
	
Supplemental Release.  Employee may execute (sign) the Supplemental Release attached hereto as Exhibit A at any time between the Termination Date and the expiration of forty-five (45) days following the Termination Date.  If Employee signs the Supplemental Release prior to the Termination Date or after the forty-sixth day following the Termination Date, the Agreement and Supplemental Release shall be, in all respects, ineffective and unenforceable.

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6.
	
Confidential and Proprietary Information.  Employee acknowledges, agrees and stipulates that during her employment Employee had access to confidential and proprietary information relating to the business and affairs of Employer and its parent, subsidiary, and affiliated entities including, by way of example, (i) financial information, including budgets or projections, business plans, pricing policies or strategies, tariff information, business methods, or any other financial, marketing, pricing, or regulatory strategic information; (ii) information about existing or potential customers and their representatives, including customer identities, lists, preferences, customer services and all other customer information; (iii) information about pending or threatened legal or regulatory proceedings; (iv) unit holder data, information about employees and the terms and conditions of their employment; (v) computer techniques, programs and software; (vi) trade secrets, technical information, patents, techniques, concepts, formulas, documentation, intellectual property, software, industrial designs, products, technical studies and data, and engineering information; (vii) information about potential acquisitions or divestitures; and (viii) any other non-public information that cannot be obtained readily by the public and would be useful or helpful to competitors, customers or industry trade groups if disclosed (collectively, "Confidential Information"). Notwithstanding the foregoing, Confidential Information shall not include any information that now is or hereafter becomes available to the general public other than as the result of a disclosure by Employee in breach hereof.  Employee agrees that Employee shall not, at any time, directly or indirectly, for any reason whatsoever, with or without cause, unless pursuant to a lawful subpoena or court order, use, disseminate or disclose any of the Confidential Information to any person or entity.  Employee further acknowledges that if Employee were to use or disclose, directly or indirectly, the Confidential Information, that such use and/or disclosure would cause Employer irreparable harm and injury for which no adequate remedy at law exists.  Therefore, in the event of the breach or threatened breach of the provisions of this Agreement by Employee, Employer shall be entitled to obtain injunctive relief to enjoin such breach or threatened breach, in addition to all other remedies and alternatives which may be available at law or in equity.  Employee acknowledges that the remedies contained in the Agreement for violation of this Agreement are not the exclusive remedies which Employer may pursue.  The foregoing restrictions in this Section 5 shall not apply to Employee’s utilization of internal Employer reporting procedures, or with respect to Employee’s communication with federal, state or local governmental agencies as may be legally required or otherwise protected by law, or any other communication required by law or an applicable securities exchange.   

	
 
	
7.
	
Non-Solicit/Non-Hire. 

	
 
	
(a)
	
For the period beginning on the Termination Date and continuing until March 31, 2017, Employee acknowledges and agrees that she shall not for any reason, either directly or indirectly (without the prior written consent of the Employer) acting alone or in conjunction with others (i) solicit, induce, attempt to influence, any employee of the Employer, its subsidiaries or its affiliates to terminate employment with Employer or any of its subsidiaries and affiliates at an exempt/professional level (i.e. Analyst/Specialist) or above, or to accept employment with any entity (including affiliates or subsidiaries) of the Employee’s employer; or (ii) participate in any hiring, employment or retaining in any capacity, at a business in which Employee becomes a director, officer or employee of or consultant to, (a) of any active employee of Employer, its subsidiaries or its affiliates (expressly including Sunoco, Inc.); or (b) of any employee who was actively employed by Employer, its subsidiaries or affiliates (expressly including Sunoco, Inc.) within the previous six (6) months.  Employer acknowledges that the non-solicit restrictions of this Section 7 shall not be violated by general advertising not targeted at employees of the Employer, its subsidiaries or affiliates, but such general advertising shall not, once a candidate/employee covered by this Section is identified, relieve Employee of her obligations under this Section 7(a).

Employee agrees that prior to or upon commencement of any relationship (including as a director, officer, employee, partner, consultant, agent or advisor) with a new entity to promptly advise such entity in writing of the existence of the requirements of this Section 7 and Employee’s inability to solicit or hire any employee of the Employer, its subsidiaries or its affiliates.  Employer acknowledges that any disclosure of the provisions of this Section 7 by the Employee in accordance herewith shall be an approved disclosure and not in violation of Section 9 hereof.

	
 
	
(b)
	
Employee specifically recognizes and affirms that the provisions of Section 7 are material and essential terms of this Agreement. Employee further acknowledges and agrees that if the non-solicit provision found in Section 7 is determined to be invalid or unenforceable for any reason whatsoever by a court of competent jurisdiction in an action between Employee and Employer, then Employer shall be entitled to be repaid all of the Restrictive Covenant Payment  

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(c)
	
Employee acknowledges and agrees that the Employer will suffer irreparable harm if Employee breaches any of the obligations under this Section 7, and that monetary damages would be impossible to quantify and inadequate to compensate the Employer for such a breach.  Accordingly, Employee agrees that in the event of a breach, or a threatened breach, by Employee of any of the provisions of this Section 7, the Employer shall be entitled to seek, in addition to any other rights, remedies or damages available to the Employer at law or in equity, a temporary and permanent injunction, without having to prove damages, in order to prevent or restrain any such breach, or threatened breach, by Employee, or by any or all of Employee’s partners, employers, employees, servants, agents, representatives and any other Persons directly or indirectly acting for, or on behalf of, or in concert with, Employee, and that the Employer shall be entitled to seek all of its costs and expenses incurred in obtaining such relief including reasonable attorneys’ and client legal costs and disbursements. 

	
 
	
(d)
	
Employee hereby agrees that all restrictions contained in this Section 7 are reasonable, valid and necessary to protect the Employer’s Confidential Information, goodwill and proprietary business interests.  Employee further agrees never to file any lawsuit or claim challenging or otherwise seeking to modify or restrict the non-solicitation provision set forth in Section 7 of this Agreement.  Nevertheless, if any of the aforesaid restrictions is found by a court having jurisdiction to be unreasonable, over broad as time or otherwise unenforceable, the Parties intend for the restrictions therein set forth to be modified by such court so as to be reasonable and enforceable and, as so modified by the court, to be fully enforced.  If any covenant or provision of this Section 7 is determined to be void or unenforceable in whole or in part, for any reason, it shall be deemed not to affect or impair the validity of any other covenant or provision of this Agreement, which shall remain in full force and effect.  The provisions of this Section 7 shall remain in full force and effect notwithstanding the termination of this Agreement for any reason.

	
 
	
8.
	
Employer's Property.  Employee represents that on or promptly following the Date of Termination Employee will return to Employer all written and electronic records, communications, reports, and other materials and data (whether or not they contain Confidential Information), including any copies or reproductions thereof, and all other property or tangible items, such as computer equipment, purchasing cards and telephone cards, that belong to Employer and are in Employee's possession or under Employee's control.  After returning all such property to the Company, Employee shall delete or destroy all electronic copies located on her personal computer, iPad or other handheld device.

	
 
	
9.
	
Confidentiality of Agreement.  Employee agrees not to discuss, disclose or otherwise communicate any of the terms of this Agreement, including without limitation the amounts of the payments or other consideration provided, to anyone except to Employee’s attorney, tax advisor and Employee’s spouse, if any, or as required by law.  Employee understands and agrees that, as a result of this binding promise of strict confidentiality, Employee may not hereafter discuss or otherwise communicate with, among other persons, any of Employer’s current or former employees regarding the terms, including the payments or other consideration, included in this Agreement.  The foregoing restrictions in this Section 9 shall not apply to Employee’s utilization of internal Employer reporting procedures, or with respect to Employee’s communication with federal, state or local governmental agencies as may be legally required or otherwise protected by law.

	
 
	
10.
	
Negative Statements By the Parties.  Employee and Employer shall refrain from publishing any oral or written statements about one another, or any of the Employer’s parents, subsidiaries or affiliates, or any of such entities’ officers, employees, shareholders, investors, directors, agents or representatives that are malicious, obscene, threatening, harassing, intimidating or discriminatory and which are designed to harm any of the foregoing.  The foregoing restrictions in this Section 10 shall not apply to Employee’s utilization of internal Employer reporting procedures, or with respect to Employee’s communication with federal, state or local governmental agencies as may be legally required or otherwise protected by law.  A violation or threatened violation of this Section 10 may be enjoined by the courts.  The rights afforded the Parties, if any, under this provision are in addition to any and all rights and remedies otherwise afforded by law. 

	
 
	
11.
	
Cooperation.  For a period of twelve (12) months following the Termination Date, subject to any reasonable limitations on Employee’s availability imposed by a future employer, Employee agrees to provide reasonable cooperation to Employer as reasonably requested by responding to questions, attending meetings, depositions, governmental proceedings and court hearings, and by cooperating with Employer and its accountants and legal counsel with respect to any investigations, claims or litigation or business, accounting, audit, legal or regulatory issues of which Employee has knowledge.  Employer agrees to reimburse Employee for reasonable out-of-pocket 

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expenses actually incurred for travel, meals and lodging, in accordance with Employer's then existing policies, for providing cooperation specifically requested by Employer.  

	
 
	
12.
	
Non-Admission.  This Agreement, and the payment of money and other consideration provided by Employer under this Agreement, is not an admission or indication of any wrongdoing by Employer or Employee.

	
 
	
13.
	
Entire Agreement.  Employee agrees that this Agreement and Exhibit A hereto constitute the complete agreement between the parties and that no other representations have been made by Employer and that the terms hereof may not be modified except by a written instrument signed by Employer and Employee.  

	
 
	
14.
	
Severability.  In the event that any provision of this Agreement should be held to be void, voidable, or unenforceable, the remaining portions hereof shall remain in full force and effect.

	
 
	
15.
	
Interpretation Under State Law.  This Agreement shall be construed in accordance with, and its performance governed by, the laws of the State of Texas, without regard to its conflict of law principles. 

	
 
	
16.
	
Headings.  The headings used in this Agreement are inserted solely for convenience and shall not be used to interpret the meaning of this document.

	
 
	
17.
	
Knowing and Voluntary:  By signing below, Employee knowingly and voluntarily accepts this Agreement and does so of Employee's own free will.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date set forth below.

 

	
SUNOCO, LP

	
 
	
 
	
 

	
By:
	
 
	
Sunoco GP, LLC, its general partner

	
 
	
 
	
 

	
 
	
 
	
/s/Christopher Curia

	
 
	
 
	
Christopher Curia, EVP & CHRO

	
 
	
 
	
 

	
Dated:
	
 
	
9/21/15

	
 
	
 
	
 

	
 
	
 
	
 

	
EMPLOYEE

	
 
	
 
	
 

	
 
	
 
	
/s/Clare P. McGrory

	
 
	
 
	
Clare P. McGrory

	
 
	
 
	
 

	
Dated:
	
 
	
9/21/15

Please return executed originals of this Agreement by regular mail to Attention: Christopher Curia, Executive Vice President and Chief Human Resources Officer, 8111 Westchester, Suite 600, Dallas, Texas or by email to chris.curia@energytransfer.com

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EXHIBIT “A”

SUPPLEMENTAL RELEASE

Reference is made to that certain Non-Solicit/Non-Hire Agreement and Full Release of Claims (the "Agreement") between Sunoco LP and its and their subsidiaries and affiliates (“Sunoco” or “Employer”) and Clare P. McGrory ("Employee") dated as of September 21, 2015 (the “Agreement”). This Supplemental Release (the “Supplemental Release”) is Exhibit A to the Agreement.  All capitalized terms used in this Supplemental Release and not defined herein shall have the meanings set forth for each such term in the Agreement.  By signing this Supplemental Release, Employee reaffirms and acknowledges the terms and conditions of the Agreement.

Employee hereby acknowledges and agrees that Employee voluntarily decided to resign from employment effective October 30, 2015, the Termination Date.  Employee further agrees that the Agreement provides for a Release Payment and a Restrictive Covenant Payment.   Employee shall receive the Release Payment, less required governmental payroll deductions, in exchange for executing the Agreement and this Supplemental Release, and shall not receive separate payments for executing the Agreement and Supplemental Release.

Employee stipulates, agrees, and understands that for and in consideration of the mutual covenants set forth in the Agreement and this Supplemental Release, specifically including the payment set forth in Section 2 of the Agreement, the same being good and valuable consideration, Employee hereby acting of Employee’s own free will, voluntarily and on behalf of  herself, Employee’s heirs, administrators, executors, successors and assigns, RELEASES, ACQUITS and forever DISCHARGES Employer and Employer’s parent entities, specifically including Energy Transfer Equity, L.P., Energy Transfer Partners, L.P., Sunoco, Inc. and its and their respective past and present subsidiaries, affiliates, partners, directors, officers, owners, shareholders, employees, benefit plans, benefit plan fiduciaries, predecessors, joint employers, successor employers and agents, and each of them (collectively "Released Parties"), of and from any and all debts, obligations, claims, counterclaims, demands, judgments, and/or causes of action of any kind whatsoever (whether known or unknown, in tort, contract, at law or in equity, by statute or regulation, or on any basis), that are based on facts occurring at any time before, or at the time of, Employee's signing of this Supplemental Release, for any damages or other remedies of any kind, including, without limitation, direct or indirect, consequential, compensatory, actual, punitive, or any other damages, attorneys' fees, expenses, reimbursements, costs of any kind or reinstatement. This release includes, but is not limited to, any and all rights, claims, demands, and/or causes of action arising out of Employee’s employment or termination from employment with Employer, or relating to purported employment discrimination, retaliation or violations of civil rights, if any, including, but not limited to, claims arising under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Civil Rights Act of 1866 and/or 1871, the Age Discrimination in Employment Act ("ADEA"), the Older Workers Benefit Protection Act of 1990, the Employee Retirement Income Security Act, the Americans With Disabilities Act of 1990, Executive Order 11246, the Equal Pay Act of 1963, the Rehabilitation Act of 1973, the Family and Medical Leave Act or any other applicable federal, state, or local statute or ordinance or any other claim, whether statutory or based on common law, arising by reason of Employee’s employment with Employer or the termination of such employment or circumstances related thereto, or by reason of any other matter, cause, or thing whatsoever, from the first date of employment with Employer to the date and time of Employee’s execution of this Supplemental Release.    Notwithstanding the preceding, nothing in this Supplemental Release is intended to waive or otherwise release Employee’s right to: (i) coverage under the Employer’s director and officer insurance policies, if any; (ii) defense and indemnification under the Employer’s organizational documents and/or internal policies or, for events related to her period of employment with the Employer, as may be applicable; (iii) any claims arising from breach of the Agreement by the Employer (including but not limited to claims for compensation and benefits described in Section 3 of the Agreement), and (iv) any claims that cannot be waived by law.

Employee has the right to consider this Supplemental Release for a period of forty-five (45) days following Employee’s Termination Date.  Employee may choose to sign this Supplemental Release prior to the expiration of the forty-five (45) day period, but is not required to do so.  Employee may not execute this Supplemental Release before the Termination Date or after the forty-sixth day following the Termination Date has expired.  If Employee executes this Supplemental Release before the Termination Date or after the forty-sixth day following the Termination Date has expired, this Supplemental Release and the Agreement shall not be effective or enforceable.

Once Employee signs the Supplemental Release, Employee shall have a period of seven (7) days following the date Employee signs the Supplemental Release to revoke the Supplemental Release.  To revoke this Supplemental Release, Employee must notify Employer by providing written notice to Christopher Curia, Executive Vice President and Chief Human Resources Officer, 8111 Westchester, Suite 600, Dallas, Texas, or by email to chris.curia@energytransfer.com, prior to the expiration of the seven (7) day revocation period.  

Employer hereby advises Employee to consult with an attorney concerning this Supplemental Release prior to signing the Supplemental Release.

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Neither the Agreement nor this Supplemental Release shall become effective or enforceable until all of the following events have occurred: (i) the seven-day period provided for in Section 4 of the Agreement has expired without Employee revoking the Agreement; (ii) Employee has returned the original fully executed (signed) Agreement to Christopher Curia, Executive Vice President and Chief Human Resources Officer, 8111 Westchester, Suite 600, Dallas, Texas, or by email to chris.curia@energytransfer.com; (iii) the seven-day revocation period provided for in this Supplemental Release has expired without Employee revoking the Supplemental Release; and (iv) Employee has returned the original fully executed (signed) Supplemental Release to Christopher Curia, Executive Vice President and Chief Human Resources Officer, 8111 Westchester, Suite 600, Dallas, Texas, or by email to chris.curia@energytransfer.com.  

Employee represents that Employee has returned to Employer all written and electronic records, communications, reports, and other materials and data, including any copies, and also all other tangible items, such as computer equipment, purchasing cards and telephone cards, that belong to Employer and are in Employee's possession or under Employee's control.  

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties have executed this Supplemental Release effective as of the Effective Date.

 

	
SUNOCO, LP

	
 
	
 
	
 

	
By:
	
 
	
Sunoco GP, LLC, its general partner

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Christopher Curia, EVP & CHRO

	
 
	
 
	
 

	
Dated:
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
EMPLOYEE

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
Clare P. McGrory

	
 
	
 
	
 

	
Dated:
	
 
	
 

Please return executed originals of this Supplemental Release by regular mail to Attention: Christopher Curia, Executive Vice President and Chief Human Resources Officer, 8111 Westchester, Suite 600, Dallas, Texas or by email to chris.curia@energytransfer.com 

 

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 Exhibit 10.10 

AMENDMENT NO. 5 
 TO
SECOND AMENDED AND RESTATED 
 FLOW SERVICING AGREEMENT 

Amendment No. 5 to Second Amended and Restated Flow Servicing Agreement, dated as of September 1, 2015 (the
“Amendment”), by and between PennyMac Loan Services, LLC, a Delaware limited liability company (the “Servicer”), and PennyMac Operating Partnership, L.P., Delaware limited partnership (the “Owner”).

 RECITALS 
 WHEREAS,
the Servicer and the Owner are parties to that certain Second Amended and Restated Flow Servicing Agreement, dated as of March 1, 2013 (the “Existing Servicing Agreement” and, as amended by this Amendment, the
“Servicing Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Existing Servicing Agreement. 

WHEREAS, the Servicer and the Owner have agreed, subject to the terms and conditions of this Amendment, that the Existing Servicing Agreement
be amended to reflect certain agreed upon revisions to the terms of the Existing Servicing Agreement. 
 NOW, THEREFORE, in consideration of
the mutual premises and mutual obligations set forth herein, the Servicer and the Owner hereby agree that the Existing Servicing Agreement is hereby amended as follows: 

SECTION 1. Definitions. Section 1.01 of the Existing Servicing Agreement is hereby amended by deleting the definitions of
“Ancillary Income”, “Servicing Fee” and “Supplemental Servicing Fee” and replacing each in its entirety as follows: 

Ancillary Income: All income derived from the Mortgage Loans (other than payments or other collections in respect of
principal, interest, Escrow Payments and Prepayment Penalties attributable to the Mortgage Loans) including, but not limited to, assumption fees, reconveyance fees, subordination fees, speedpay fees, mortgage pay on the web fees, automatic clearing
house fees, demand statement fees, modification fees, if any, fees received with respect to checks on bank drafts returned by the related bank for insufficient funds, the Servicer’s share of all late charges, and other similar types of fees
arising from or in connection with any Mortgage Loan to the extent not otherwise payable to the Mortgagor under applicable law or pursuant to the terms of the related Mortgage Note. In no event shall the Servicer be entitled to any Prepayment
Penalties. 
 Servicing Fee: With respect to each Mortgage Loan, the monthly sum of (a) the applicable Base
Servicing Fee, (b) if such Mortgage Loan is a Third Party Loan, the applicable Additional Servicing Fee, and (c) if such Mortgage Loan is a Distressed Whole Loan, the applicable Supplemental Servicing Fee. With respect to each newly
boarded Mortgage Loan, boarded on or before the 15th day of the 

 
month, the Servicer shall be entitled to receive the full monthly Servicing Fee for each newly boarded Mortgage Loan. With respect to each newly boarded Mortgage Loan boarded after the 15th day
of the month, the Servicer shall be entitled to one-half of the monthly Servicing Fee for each newly boarded Mortgage Loan. With respect to each Mortgage Loan released from servicing, Servicer shall be entitled to receive the full monthly Servicing
Fee irrespective of the applicable release date. 
 Supplemental Servicing Fee: With respect to each Distressed Whole
Loan, the Supplemental Servicing Fee set forth in or established pursuant to Exhibit 9 hereto. 
 Third Party Loan: A
Mortgage Loan (including any Correspondent Loan) owned by a third party investor and with respect to which Owner owns or has otherwise acquired the Servicing Rights relating thereto, and any Correspondent Loan held by Owner as a whole loan. 

SECTION 2. Servicing of Agency Mortgage Loans. Article III of the Existing Servicing Agreement is hereby amended by deleting
Section 3.01 in its entirety and replacing it as follows: 
 Section 3.01 Servicer to Act as Servicer of Agency Mortgage
Loans. 
 The Servicer shall service and administer each Agency Mortgage Loan in accordance and shall otherwise comply in
all respects with the related Guide, including the requirements of such Guide relating to the maintenance of custodial and escrow accounts, it being understood that any interest paid by the depository institution on funds deposited in any related
custodial account or escrow account shall accrue to the benefit of the Owner. To the extent required by law, the Owner shall be responsible for interest on escrowed funds to the Mortgagor notwithstanding that such escrow account may be non interest
bearing or that interest paid thereon is insufficient for such purposes. 
 SECTION 3. Servicing of Non-Agency Mortgage Loans.
Article IV of the Existing Servicing Agreement is hereby amended as follows: 
 (a) by deleting the last sentence of
Section 4.04 in its entirety and replacing it as follows: 
 Any interest paid by the depository institution on
funds deposited in the Custodial Account and relating to any Distressed Whole Loan shall accrue to the benefit of the Servicer and the Servicer may retain any such interest. 

(b) by deleting Section 4.05(vi) in its entirety and replacing it as follows: 

(vi) to pay to itself any interest earned on funds deposited in the Custodial Account and relating to any Distressed Whole

  
 2 

 
Loan (all such interest to be withdrawn monthly not later than each Remittance Date); and 

(c) by deleting the last two sentences of Section 4.06 in their entirety and replacing them as follows: 

Any interest paid on funds deposited in the Escrow Account by the depository institution and relating to any Distressed Whole
Loan shall accrue to the benefit of the Servicer. To the extent required by law, the Servicer shall be responsible to pay from its own funds interest on escrowed funds to the Mortgagor notwithstanding that the Escrow Account may be non interest
bearing or that interest paid thereon is insufficient for such purposes. 
 (d) by deleting Section 4.07(vi) in
its entirety and replacing it as follows: 
 (vi) to pay the Servicer, or any Mortgagors to the extent required by law, any
interest due on the funds deposited in the Escrow Account and relating to any Distressed Whole Loan or to pay the Owner, or any Mortgagors to the extent required by law, any interest paid on the funds deposited in the Escrow Account and relating to
any Mortgage Loan other than a Distressed Whole Loan; 
 SECTION 4. Exhibits. Exhibit 9 of the Existing Servicing Agreement is hereby
amended by deleting it in its entirety and replacing it with the form attached hereto as Exhibit A. 
 SECTION 5. Conditions
Precedent. This Amendment shall become effective as of the date first set forth above (the “Amendment Effective Date”), subject to the satisfaction of the following conditions precedent: 

5.1 Delivered Documents. On or prior to the Amendment Effective Date, each party shall have received the following documents, each of
which shall be satisfactory to such party in form and substance: 
 (a) this Amendment, executed and delivered by duly
authorized officers of the Servicer and the Owner; and 
 (b) such other documents as such party or counsel to such party may
reasonably request. 
 5.2 Representations and Warranties. On or prior to the Amendment Effective Date, each party shall be in
compliance in all material respects with all the terms and provisions set forth in the Existing Servicing Agreement on its part to be observed or performed. 

  
 3 

 SECTION 6. Limited Effect. Except as expressly amended and modified by this Amendment, the
Existing Servicing Agreement shall continue to be, and shall remain, in full force and effect in accordance with its terms. 
 SECTION 7.
GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

SECTION 8. Counterparts. This Amendment may be executed in one or more counterparts and by different parties hereto on separate
counterparts, each of which, when so executed, shall constitute one and the same agreement. 
 SECTION 9. Conflicts. The parties
hereto agree that in the event there is any conflict between the terms of this Amendment, and the terms of the Existing Servicing Agreement, the provisions of this Amendment shall control. 

[SIGNATURE PAGE FOLLOWS] 

  
 4 

 IN WITNESS WHEREOF, the parties have caused their names to be signed hereto by their respective
officers thereunto duly authorized as of the day and year first above written. 
  

							
	The Servicer:	 		 	PENNYMAC LOAN SERVICES, LLC
				
		 		 	By:	 	  /s/ Anne D. McCallion
		 		 		 	Name: Anne D. McCallion
		 		 		 	Title: Chief Financial Officer
			
	The Owner:	 		 	 PENNYMAC OPERATING

PARTNERSHIP, L.P.

				
		 		 	By:	 	 PennyMac GP OP, Inc.,

its General Partner

				
		 		 	By:	 	  /s/ Andrew S. Chang
		 		 		 	Name: Andrew S. Chang
		 		 		 	Title: Chief Business Development Officer

 Exhibit A 

 EXHIBIT 9 

TERM SHEET 
 THIRD PARTY
LOANS 
 BASE SERVICING FEES 

(per loan) 
 With respect
to each Mortgage Loan that is a Third Party Loan and not a Distressed Whole Loan, the Base Servicing Fee shall be: 
 (i) if
such Mortgage Loan is a Fixed-Rate Mortgage Loan, $7.50; or 
 (ii) if such Mortgage Loan is an Adjustable-Rate Mortgage
Loan, $8.50. 
  
  

ADDITIONAL SERVICING FEES 

(per loan) 
 With respect
to each Mortgage Loan that is a Third Party Loan, the Additional Servicing Fee shall be one of the following: 
 (i) if, as
of the first day of the relevant month, such Mortgage Loan is not delinquent, or is delinquent by less than 30 days, and no bankruptcy proceeding is pending by or against the Mortgagor, 0; 

(ii) if, as of the first day of the relevant month, such Mortgage Loan is delinquent by 30 days or more and less than 60 days,
and no bankruptcy proceeding is pending by or against the Mortgagor and no foreclosure proceeding has been initiated, $10.00; 

(iii) if, as of the first day of the relevant month, such Mortgage Loan is delinquent by 60 days or more and less than 90 days,
and no bankruptcy proceeding is pending by or against the Mortgagor and no foreclosure proceeding has been initiated, $20.00; 

(iv) if, as of the first day of the relevant month, such Mortgage Loan is delinquent by 90 days or more, and no bankruptcy
proceeding is pending by or against the Mortgagor and no foreclosure proceeding has been initiated, $50.00; 
 (v) if, as of
the first day of the relevant month, a bankruptcy proceeding is pending by or against the Mortgagor, $45.00; 

  
 Exh. 9-1 

 (vi) if, as of the first day of the relevant month, foreclosure proceedings have
been commenced and the Mortgaged Property has not become an REO Property, $55.00; or 
 (vii) if, as of the first day of the
relevant month, the Mortgaged Property has become an REO Property, $75.00. 
  

 

  
 Exh. 9-2 

 DISTRESSED WHOLE LOANS 

BASE SERVICING FEES 

(per loan) 
 With respect
to each Mortgage Loan that is a Distressed Whole Loan, the Base Servicing Fee shall be one of the following: 
 (i) if, as of
the first day of the relevant month, such Mortgage Loan is not delinquent, or is delinquent by less than 30 days, and no bankruptcy proceeding is pending by or against the Mortgagor, $30.00; 

(ii) if, as of the first day of the relevant month, such Mortgage Loan is delinquent by 30 days or more and less than 90 days,
and no bankruptcy proceeding is pending by or against the Mortgagor and no foreclosure proceeding has been initiated, $60.00; 

(iii) if, as of the first day of the relevant month, such Mortgage Loan is delinquent by 90 days or more, and no bankruptcy
proceeding is pending by or against the Mortgagor and no foreclosure proceeding has been initiated, $90.00; 
 (iv) if, as of
the first day of the relevant month, such Mortgage Loan is not delinquent, or is delinquent by less than 30 days, and a bankruptcy proceeding is pending by or against the Mortgagor, $100.00; 

(v) if, as of the first day of the relevant month, such Mortgage Loan is delinquent by 30 days or more, and a bankruptcy
proceeding is pending by or against the Mortgagor, $100.00; 
 (vi) if, as of the first day of the relevant month,
foreclosure proceedings have been commenced and the Mortgaged Property has not become an REO Property, $125.00; or 
 (vii)
if, as of the first day of the relevant month, the Mortgaged Property has become an REO Property, $75.00. 
  

 
 SUPPLEMENTAL SERVICING FEES

 With respect to each Mortgage Loan that is a Distressed Whole Loan, the Supplemental Servicing Fee shall be $25.00. 

 
  

  
 Exh. 9-3 

 THIRD PARTY LOANS AND DISTRESSED WHOLE LOANS 

OTHER KEY PARAMETERS 
  

			
	Remittance Types	  	Actual/Actual Basis during Interim Servicing Period
		
	Remittance Date	  	See definition of Remittance Date
		
	Servicing Advances	  	Servicer to be reimbursed monthly for all unpaid Servicing Advances incurred by Servicer in the prior month including Cost of Funds.
		
	Cost of Funds on Servicing Advances	  	Refer to Section 5.04
		
	Prepayment Penalties	  	Owner will retain 100% of the prepayment penalties.
		
	Late Charges Collected	  	Servicer will retain 75% of late charges collected by Servicer
		
	Ancillary Income	  	Servicer will retain 100% of all Ancillary Income
		
	Delegated Authority	  	Refer to Exhibit 10
		
	Contract Term	  	Refer to Section 8.01
		
	Eligible Mortgage Loan	  	See definition of Eligible Mortgage Loan

  
  

ANCILLARY INCOME AND OTHER FEES 

The Servicer shall be entitled to all Ancillary Income and the following Other Fees in addition to the Servicing Fee: 

Setup Fee: With respect to each Mortgage Loan, other than a Distressed Whole Loan, $10.00 if information is provided to Servicer in a format that
enables electronic boarding or $25.00 if information is provided to Servicer in format that necessitates manual boarding. With respect to each Distressed Whole Loan, $15.00 if information is provided to Servicer in format that enables electronic
boarding or $25.00 if information is provided to Servicer in format that necessitates manual boarding. 
 Service Release Fee: With respect to each
Mortgage Loan, other than a Distressed Whole Loan, $25.00 if released on or prior to the first anniversary of boarding, $23.00 if released after the first anniversary of boarding and on or prior to the second anniversary of boarding, and $18.00 if
released thereafter. With respect to each Distressed Whole Loan, $500.00 if released within one 

  
 Exh. 9-4 

 
year of boarding, $40.00 if released within two years of boarding and $40.00 if released thereafter. 

Deed in Lieu Fee: $500, unless the deed in lieu is completed under the U.S. Treasury’s Home Affordable Foreclosure Alternatives initiative, in
which case no Deed in Lieu Fee shall apply. 
 Liquidation Fee: 150 basis points of the gross proceeds received in connection with either the
disposition of a Mortgage Loan (including the sale of the related Mortgage Note) or an REO Property or a full or discounted payoff accepted by the Servicer with respect to a Mortgage Loan, including a full or discounted payoff accepted in connection
with the sale of the Mortgaged Property to a third party. 
 REO Property Rental Fee: $30 per month per REO Property. 

REO Property Management Fee: Servicer’s cost if property management services and/or any related software costs are outsourced to a third party
property management firm or 9% of gross rental income if Servicer provides property management services directly. 
 Tax Service Contract: $75.00 per
Mortgage Loan. 
 Flood Zone Service Contract: Servicer’s cost. 

MERS Fee: Servicer’s cost. 
 Reperformance Fee:
150 basis points of the unpaid principal balance of the Mortgage Loan (as then in effect) if the Mortgage Loan is brought current (after having been delinquent for a period of 90 days or more) without any modification and remains current for a
consecutive period of 12 months or is sold prior to the expiration of such 12 months. 
 Modification Fee: 150 basis points of the unpaid principal
balance of the Mortgage Loan (as in effect immediately after the consummation of the modification) if the modification includes an interest rate reduction or is classified by the Servicer (acting in accordance with Accepted Servicing Practices) as a
full modification; or, if the Servicer participates in the U.S. Treasury’s Home Affordable Modification program (or other similar mortgage loan modification programs) and enters into a transaction involving the Mortgage Loan that results in the
payment or retention of any incentive payment to the Servicer or Owner and the Servicer is not otherwise entitled to a Modification Fee as set forth above, 150 basis points of the unpaid principal balance of the Mortgage Loan (as in effect
immediately after the consummation of the transaction). 
 If the Servicer enters into a transaction involving the Mortgage Loan under the
U.S. Treasury Department’s Home Affordable Modification program (or other similar mortgage loan modification programs) that results in any incentive payment to the Servicer or Owner and the Servicer has already collected a Modification Fee, the
Servicer shall reimburse the Owner the amount of such incentive payments. 
 In the event the Servicer effects a refinancing of a Distressed
Whole Loan on behalf of the Owner and not through a third party lender and the resulting Mortgage Loan is readily saleable, or the Servicer originates a Mortgage Loan to facilitate the disposition of REO

  
 Exh. 9-5 

 
Property, the Servicer shall be entitled to fees and other compensation in connection with such originations based on market-based pricing and terms that are consistent with the pricing and terms
offered by the Servicer to unaffiliated third parties on a retail basis. The amount of the compensation and the pricing and terms offered by the Servicer shall be subject to review by the Owner and the Servicer from time to time to reflect market
rates. The Owner shall reimburse the Servicer for any out of pocket expenses that the Servicer incurs in connection with any such origination, including title fees, legal fees and closing costs. 

  
 Exh. 9-6

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