exv10w37w1



 





Exhibit 10.37.1




November 22, 2005




CONFIDENTIAL




Joseph A. Kenary, Jr.

C/o CapitalSource Inc.

4445 Willard Ave. 12th Floor

Chevy Chase, MD 20815




          Re: Amendment to Employment Agreement



Dear Joe:




          Reference is made to that certain Employment Agreement dated April 4, 2005 (the “Employment
Agreement”) by and between CapitalSource Inc. (the “Employer”) and Joseph A. Kenary, Jr. (the
“Executive”). The Employer and the Executive desire to amend the Employment Agreement by means of
this letter agreement dated November 22, 2005 (the “Amendment”) so that the future grants of Stock
provided for in Section 5(e) of the Employment Agreement shall instead be granted immediately.
Accordingly, in consideration of the mutual covenants and agreements set forth herein and in the
Employment Agreement, and for other good and valuable consideration, the receipt and sufficiency of
which hereby are acknowledged, the Employer and the Executive agree as follows:




          1. Immediate Grant of Stock. The Employment Agreement is hereby amended so that the
grants of Stock set forth in Section 5(e) of the Employment Agreement which have yet to occur
(totaling 197,500 shares) shall be issued and granted by the Employer to the Executive on November
22, 2005 (the “Grant Date”). The 197,500 shares of Stock granted on the Grant Date shall vest and
become freely transferable as already provided in the Employment Agreement as follows: 20,500
shares on April 4, 2006; 28,500 shares on April 4, 2007; 36,500 shares on April 4, 2008; 32,000
shares on April 4, 2009; and 80,000 shares on April 4, 2010. Any Stock already granted to the
Executive pursuant to Section 5(e) of the Employment Agreement shall in no way be affected by this
Amendment. Schedule I, which is attached as part of Exhibit A to the Employment Agreement, is null
and void and deemed deleted from the Employment Agreement.




          2. Miscellaneous Provisions.




          (a) Terms used herein with initial capitalization and not otherwise defined shall have the
meaning set forth in the Employment Agreement.




          (b) This Amendment shall amend the Employment Agreement only as expressly set forth herein.
The provisions of the Employment Agreement other than Section 5(e) and Schedule I and the
provisions in Section 5(e) not expressly modified herein (including, without limitation, the last
sentence of Section 5(e)) shall remain in full force and effect according to their terms.




 









 








          (c) This Amendment shall be binding upon the Employer and the Executive and shall inure to
their benefit and to the benefit of their respective heirs, devisees, executors, administrators,
legal representatives, successors, and permitted assigns.




          (d) This Amendment shall not be amended, altered or modified except by an instrument in
writing duly executed by the party against whom enforcement is sought.




          (e) This Amendment shall be governed by and construed in accordance with the laws of the State
of Maryland (but not including any choice of law rule thereof that would cause the laws of another
jurisdiction to apply).




          (f) This Amendment constitutes the entire agreement between the Employer and the Executive
with respect to the subject matter hereof, there being no representations, warranties or
commitments with respect to the subject matter hereof except as set forth herein.




* * *




          Joe, please indicate your agreement to the terms set forth in this Amendment by signing below
and returning the original to me.




Sincerely,




	 	 	 	 
	 

	 	/s/ John K.
Delaney 

	 

	 	John K. Delaney

Chairman and Chief Executive Officer





AGREED:




	 	 	 	 
	/s/ Joseph A. Kenary, Jr.
 
	 	11/22/05 

	Joseph A. Kenary, Jr.

	 	Date