Document:

Exhibit 10.2

 

REVOLVING LINE OF CREDIT NOTE

 

	
  $5,000,000.00

  	
  West Covina, California

  
	
   

  	
  December 1, 2008

  

 

FOR
VALUE RECEIVED, the undersigned WILLDAN GROUP, INC. (“Borrower”) promises to
pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”) at its San
Gabriel Valley Regional Commercial Banking Office at 1000 Lakes Drive, Suite 250,
West Covina, California, or at such other place as the holder hereof may
designate, in lawful money of the United States of America and in immediately
available funds, the principal sum of Five Million Dollars ($5,000,000.00), or
so much thereof as may be advanced and be outstanding, with interest thereon,
to be computed on each advance from the date of its disbursement as set forth
herein.

 

DEFINITIONS:

 

As
used herein, the following terms shall have the meanings set forth after each,
and any other term defined in this Note shall have the meaning set forth at the
place defined:

 

(a)           “Business Day” means
any day except a Saturday, Sunday or any other day on which commercial banks in
California are authorized or required by law to close.

 

(b)           “Fixed Rate Term”
means a period commencing on a Business Day and continuing for one (1), three (3) or
six (6) month(s), as designated by Borrower, during which all or a portion
of the outstanding principal balance of this Note bears interest determined in
relation to LIBOR; provided however, that no Fixed Rate Term may be selected
for a principal amount less than One Hundred Thousand Dollars ($100,000.00);
and provided further, that no Fixed Rate Term shall extend beyond the scheduled
maturity date hereof. If any Fixed Rate Term would end on a day which is not a
Business Day, then such Fixed Rate Term shall be extended to the next
succeeding Business Day.

 

(c)           “LIBOR” means the
rate per annum (rounded upward, if necessary, to the nearest whole 1/8 of 1%)
and determined pursuant to the following formula:

 

	
  LIBOR =

  	
  Base LIBOR

  
	
   

  	
  100% - LIBOR Reserve Percentage

  

 

(i)            “Base LIBOR” means
the rate per annum for United States dollar deposits quoted by Bank as the
Inter-Bank Market Offered Rate, with the understanding that such rate is quoted
by Bank for the purpose of calculating effective rates of interest for loans
making reference thereto, on the first day of a Fixed Rate Term for delivery of
funds on said date for a period of time approximately equal to the number of
days in such Fixed Rate Term and in an amount approximately equal to the
principal amount to which such Fixed Rate Term applies. Borrower understands
and agrees that Bank may base its quotation of the Inter-Bank Market Offered
Rate upon such offers or other market indicators of the Inter-Bank Market as
Bank in its discretion deems appropriate including, but not limited to, the
rate offered for U.S. dollar deposits on the London Inter-Bank Market.

 

(ii)           “LIBOR Reserve
Percentage” means the reserve percentage prescribed by the Board of Governors
of the Federal Reserve System (or any successor) for “Eurocurrency

 

1

 

Liabilities”
(as defined in Regulation D of the Federal Reserve Board, as amended), adjusted
by Bank for expected changes in such reserve percentage during the applicable
Fixed Rate Term.

 

(d)           “Prime Rate” means
at any time the rate of interest most recently announced within Bank at its
principal office as its Prime Rate, with the understanding that the Prime Rate
is one of Bank’s base rates and serves as the basis upon which effective rates
of interest are calculated for those loans making reference thereto, and is
evidenced by the recording thereof after its announcement in such internal
publication or publications as Bank may designate.

 

INTEREST:

 

(a)           Interest. The outstanding principal balance of this
Note shall bear interest (computed on the basis of a 360-day year, actual days
elapsed) either (i) at a fluctuating rate per annum one-half percent
(0.50%) below the Prime Rate in effect from time to time, or (ii) at a
fixed rate per annum determined by Bank to be one and one-quarter percent
(1.25%) above LIBOR in effect on the first day of the applicable Fixed Rate
Term. When interest is determined in relation to the Prime Rate, each change in
the rate of interest hereunder shall become effective on the date each Prime
Rate change is announced within Bank. With respect to each LIBOR selection
hereunder, Bank is hereby authorized to note the date, principal amount,
interest rate and Fixed Rate Term applicable thereto and any payments made
thereon on Bank’s books and records (either manually or by electronic entry)
and/or on any schedule attached to this Note, which notations shall be prima
facie evidence of the accuracy of the information noted.

 

(b)           Selection of
Interest Rate Options.
At any time any portion of this Note bears interest determined in relation to
LIBOR, it may be continued by Borrower at the end of the Fixed Rate Term
applicable thereto so that all or a portion thereof bears interest determined
in relation to the Prime Rate or to LIBOR for a new Fixed Rate Term designated
by Borrower. At any time any portion of this Note bears interest determined in
relation to the Prime Rate, Borrower may convert all or a portion thereof so
that it bears interest determined in relation to LIBOR for a Fixed Rate Term
designated by Borrower. At such time as Borrower requests an advance hereunder
or wishes to select a LIBOR option for all or a portion of the outstanding
principal balance hereof, and at the end of each Fixed Rate Term, Borrower
shall give Bank notice specifying: (1) the interest rate option selected
by Borrower; (ii) the principal amount subject thereto; and (iii) for
each LIBOR selection, the length of the applicable Fixed Rate Term. Any such
notice may be given by telephone (or such other electronic method as Bank may
permit) so long as, with respect to each LIBOR selection, (A) if requested
by Bank, Borrower provides to Bank written confirmation thereof not later than
three (3) Business Days after such notice is given, and (B) such
notice is given to Bank prior to 10:00 a.m. on the first day of the Fixed
Rate Term, or at a later time during any Business Day if Bank, at its sole
option but without obligation to do so, accepts Borrower’s notice and quotes a
fixed rate to Borrower. If Borrower does not immediately accept a fixed rate
when quoted by Bank, the quoted rate shall expire and any subsequent LIBOR
request from Borrower shall be subject to a redetermination by Bank of the
applicable fixed rate. If no specific designation of interest is made at the
time any advance is requested hereunder or at the end of any Fixed Rate Term,
Borrower shall be deemed to have made a Prime Rate interest selection for such
advance or the principal amount to which such Fixed Rate Term applied.

 

(c)           Taxes and
Regulatory Costs.
Borrower shall pay to Bank immediately upon demand, in addition to any other
amounts due or to become due hereunder, any and all (i) withholdings,
interest equalization taxes, stamp taxes or other taxes (except income and

 

2

 

franchise
taxes) imposed by any domestic or foreign governmental authority and related in
any manner to LIBOR, and (ii) future, supplemental, emergency or other
changes in the LIBOR Reserve Percentage, assessment rates imposed by the
Federal Deposit Insurance Corporation, or similar requirements or costs imposed
by any domestic or foreign governmental authority or resulting from compliance
by Bank with any request or directive (whether or not having the force of law)
from any central bank or other governmental authority and related in any manner
to LIBOR to the extent they are not included in the calculation of LIBOR. In
determining which of the foregoing are attributable to any LIBOR option
available to Borrower hereunder, any reasonable allocation made by Bank among
its operations shall be conclusive and binding upon Borrower.

 

(d)           Payment of
Interest. Interest
accrued on this Note shall be payable on the 1st day of each month, commencing January 1,
2009.

 

(e)           Default Interest. From and after the maturity date of this
Note, or such earlier date as all principal owing hereunder becomes due and
payable by acceleration or otherwise, the outstanding principal balance of this
Note shall bear interest until paid in full at an increased rate per annum
(computed on the basis of a 360-day year, actual days elapsed) equal to four
percent (4%) above the rate of interest from time to time applicable to this
Note.

 

BORROWING
AND REPAYMENT:

 

(a)           Borrowing and
Repayment. Borrower
may from time to time during the term of this Note borrow, partially or wholly
repay its outstanding borrowings, and reborrow, subject to all of the
limitations, terms and conditions of this Note and of any document executed in
connection with or governing this Note; provided however, that the total
outstanding borrowings under this Note shall not at any time exceed the
principal amount stated above. The unpaid principal balance of this obligation
at any time shall be the total amounts advanced hereunder by the holder hereof
less the amount of principal payments made hereon by or for Borrower, which
balance may be endorsed hereon from time to time by the holder. The outstanding
principal balance of this Note shall be due and payable in full on January 1,
2010.

 

(b)           Advances. Advances hereunder, to the total amount of
the principal sum stated above, may be made by the holder at the oral or
written request of (i) Thomas D. Brisbin or Mallory McCamant or Kimberly
D. Gant or Roy Gill or Kate Nguyen, any one acting alone, who are authorized to
request advances and direct the disposition of any advances until written
notice of the revocation of such authority is received by the holder at the
office designated above, or (ii) any person, with respect to advances
deposited to the credit of any deposit account of Borrower, which advances,
when so deposited, shall be conclusively presumed to have been made to or for
the benefit of Borrower regardless of the fact that persons other than those
authorized to request advances may have authority to draw against such account.
The holder shall have no obligation to determine whether any person requesting
an advance is or has been authorized by Borrower.

 

(c)           Application of
Payments. Each
payment made on this Note shall be credited first, to any interest then due and
second, to the outstanding principal balance hereof. All payments credited to
principal shall be applied first, to the outstanding principal balance of this
Note which bears interest determined in relation to the Prime Rate, if any, and
second, to the outstanding principal balance of this Note which bears interest
determined in relation to LIBOR, with such payments applied to the oldest Fixed
Rate Term first.

 

3

 

PREPAYMENT:

 

(a)           Prime
Rate. Borrower may
prepay principal on any portion of this Note which bears interest determined in
relation to the Prime Rate at any time, in any amount and without penalty.

 

(b)           LIBOR. Borrower may prepay principal on any portion
of this Note which bears interest determined in relation to LIBOR at any time
and in the minimum amount of One Hundred Thousand Dollars ($100,000.00);
provided however, that if the outstanding principal balance of such portion of
this Note is less than said amount, the minimum prepayment amount shall be the
entire outstanding principal balance thereof. In consideration of Bank
providing this prepayment option to Borrower, or if any such portion of this
Note shall become due and payable at any time prior to the last day of the
Fixed Rate Term applicable thereto by acceleration or otherwise, Borrower shall
pay to Bank immediately upon demand a fee which is the sum of the discounted
monthly differences for each month from the month of prepayment through the
month in which such Fixed Rate Term matures, calculated as follows for each
such month:

 

(i)            Determine the amount of interest which would have
accrued each month on the amount prepaid at the interest rate applicable to
such amount had it remained outstanding until the last day of the Fixed Rate
Term applicable thereto.

 

(ii)           Subtract from the amount determined in (i) above
the amount of interest which would have accrued for the same month on the
amount prepaid for the remaining term of such Fixed Rate Term at LIBOR in
effect on the date of prepayment for new loans made for such term and in a
principal amount equal to the amount prepaid.

 

(iii)          If the result obtained in (ii) for any
month is greater than zero, discount that difference by LIBOR used in (ii) above.

 

Borrower
acknowledges that prepayment of such amount may result in Bank incurring
additional costs, expenses and/or liabilities, and that it is difficult to
ascertain the full extent of such costs, expenses and/or liabilities. Borrower,
therefore, agrees to pay the above-described prepayment fee and agrees that
said amount represents a reasonable estimate of the prepayment costs, expenses
and/or liabilities of Bank. If Borrower fails to pay any prepayment fee when
due, the amount of such prepayment fee shall thereafter bear interest until
paid at a rate per annum two percent (2.0%) above the Prime Rate in effect from
time to time (computed on the basis of a 360-day year, actual days elapsed).

 

EVENTS
OF DEFAULT:

 

This
Note is made pursuant to and is subject to the terms and conditions of that
certain Credit Agreement between Borrower and Bank dated as of December 28,
2007, as amended from time to time (the “Credit Agreement”). Any default in the
payment or performance of any obligation under this Note, or any defined event
of default under the Credit Agreement, shall constitute an “Event of Default”
under this Note.

 

4

 

MISCELLANEOUS:

 

(a)           Remedies. Upon the occurrence of any Event of Default,
the holder of this Note, at the holder’s option, may declare all sums of
principal and interest outstanding hereunder to be immediately due and payable
without presentment, demand, notice of nonperformance, notice of protest,
protest or notice of dishonor, all of which are expressly waived by Borrower,
and the obligation, if any, of the holder to extend any further credit
hereunder shall immediately cease and terminate. Borrower shall pay to the
holder immediately upon demand the full amount of all payments, advances,
charges, costs and expenses, including reasonable attorneys’ fees (to include
outside counsel fees and all allocated costs of the holder’s in-house counsel),
expended or incurred by the holder in connection with the enforcement of the
holder’s rights and/or the collection of any amounts which become due to the
holder under this Note, and the prosecution or defense of any action in any way
related to this Note, including without limitation, any action for declaratory
relief, whether incurred at the trial or appellate level, in an arbitration
proceeding or otherwise, and including any of the foregoing incurred in
connection with any bankruptcy proceeding (including without limitation, any
adversary proceeding, contested matter or motion brought by Bank or any other
person) relating to Borrower or any other person or entity.

 

(b)           Obligations Joint
and Several. Should
more than one person or entity sign this Note as a Borrower, the obligations of
each such Borrower shall be joint and several.

 

(c)           Governing Law. This Note shall be governed by and construed
in accordance with the laws of the State of California.

 

IN
WITNESS WHEREOF, the undersigned has executed this Note as of the date first
written above.

 

WILLDAN
GROUP, INC.

 

	
  By:

  	
  /s/ Kimberly
  D. Gant

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  CFO

  	
   

  
				

 

5

 

ADDENDUM TO PROMISSORY NOTE

(PRIME/LIBOR PRICING ADJUSTMENTS)

 

THIS
ADDENDUM is attached to and made a part of that certain promissory note
executed by WILLDAN GROUP, INC. (“Borrower”) and payable to WELLS FARGO BANK,
NATIONAL ASSOCIATION (“Bank”), or order, dated as of December 1, 2008, in
the principal amount of Five Million Dollars ($5,000,000.00) (the “Note”).

 

The
following provisions are hereby incorporated into the Note to reflect the
interest rate adjustments agreed to by Bank and Borrower:

 

INTEREST
RATE ADJUSTMENTS:

 

(a)           Initial Interest
Rates. The initial interest rates applicable to this Note shall be the
rates set forth in the “Interest” paragraph herein.

 

(b)           Interest Rate
Adjustments. In addition to any interest rate adjustments resulting from
changes in the Prime Rate, Bank shall adjust the Prime Rate and LIBOR margins
used to determine the rates of interest applicable to this Note on a quarterly
basis, commencing with Borrower’s fiscal quarter ending October 26, 2008,
if required to reflect a change in Borrower’s ratio of Total Funded Debt to
EBITDA (as defined in the Credit Agreement referenced herein), in accordance
with the following grid:

 

	
  Total Funded Debt to

  EBITDA

  	
   

  	
  Applicable

  Prime Rate

  Margin

  	
   

  	
  Applicable

  LIBOR

  Margin

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  at least 1.75 to 1.0 but less than 2.50 to
  1.0

  	
   

  	
  0

  	
  %

  	
  1.75

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  at least 1.25 to 1.0 but less than 1.75 to
  1.0

  	
   

  	
  -0.25

  	
  %

  	
  1.50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  less than 1.25 to 1.0

  	
   

  	
  -0.50

  	
  %

  	
  1.25

  	
  %

  

 

Each
such adjustment shall be effective on the first Business Day of Borrower’s
fiscal quarter following the quarter during which Bank receives and reviews
Borrower’s most current fiscal quarter-end financial statements in accordance
with any requirements established by Bank for the preparation and delivery
thereof.

 

IN
WITNESS WHEREOF, this Addendum has been executed as of the same date as the
Note.

 

WILLDAN
GROUP, INC.

 

	
  By:

  	
  /s/ Kimberly
  D. Gant

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  CFOExhibit 10.1

 

	
  PRIVILEGED AND CONFIDENTIAL

  	
  Execution Copy

  

 

December 18,
2008

 

Mr. Jay
N. Levine

[redacted]

 

Dear
Jay:

 

We
are all extremely pleased that you have agreed to accept the position of
President and Chief Executive Officer (“CEO”) of
Capmark Financial Group Inc. (the “Company”),
effective December 4, 2008, (the “Commencement Date”),
in accordance with the terms and conditions of this letter (the “Letter Agreement”), which shall govern your employment with
the Company.

 

1.                                      Duties and Responsibilities. With respect to the terms of your employment
with the Company, you shall be the President and Chief Executive Officer of the
Company and shall be responsible for the general management of the business and
affairs of the Company and shall have all of the duties, responsibilities and
authorities customarily exercised by a President and CEO at a corporation of a
similar size and nature as the Company. You will report directly and solely to
the Board of Directors of the Company (the “Board”)
and it is intended that you will be a member of the Board for so long as you
are employed with the Company hereunder. By executing this Letter Agreement,
you acknowledge that you will devote your full business time to performing as
the President and CEO of the Company, and that you will perform your duties to
the Company at the Company’s corporate offices in Horsham, Pennsylvania, at the
Company’s offices in New York, New York, or at such other location as your
duties require. In no event will you be required to change your current
residence in connection with your duties hereunder. Notwithstanding the
foregoing, nothing herein shall preclude you from (i) serving on the
boards of directors of a reasonable number of other corporations, (ii) serving
on the boards of a reasonable number of trade associations and/or charitable
organizations, (iii) engaging in charitable activities and community
affairs and (iv) managing your personal investments and affairs, subject
to, in the case of clauses (i) and (ii), the prior written approval of the
Board (which approval shall not be unreasonably withheld) and provided that, in
the case of clauses (i) — (iv), such activities (x) do not conflict
or interfere with the effective discharge of your duties and responsibilities
hereunder, (y) are subject to the Company’s corporate governance policies
that are applicable to all senior executives of the Company and (z) are
not in violation of Section 4 or any other restrictive covenants by which
you may be bound.

 

2.                                      Compensation and Benefits. With respect to compensation for your
services as President and CEO of the Company, you will receive the following
compensation and benefits, from which the Company shall be entitled to withhold
any amount required by law, for so long as you are employed hereunder:

 

(a)  The Company shall pay you a base salary at an annual rate
equal to $5,000,000 (your “Compensation”).
Such Compensation shall be payable in equal installments on a bi-weekly basis
in arrears in accordance with the Company’s normal payroll practices. Any
increase in your Compensation shall be in the discretion of the Executive
Development and Compensation

 

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Committee
of the Board (the “Compensation Committee”),
provided that no decrease shall be made to your Compensation.

 

(b)  In addition to your Compensation, but in the sole discretion
of the Compensation Committee, the Company may pay you a bonus, in such
amount(s), at such time(s), and pursuant to such terms and conditions as the
Compensation Committee shall determine.

 

(c)  The Company shall provide you and your eligible dependents,
to the extent applicable and permitted by applicable law, with coverage under
all retirement and welfare benefit programs, plans and practices and other
fringe benefits which the Company makes available to its senior management
(commensurate with your position in the Company and to the extent permitted
under any such employee benefit plan) in accordance with the terms thereof.

 

(d)  The Company will reimburse you for (i) all reasonable
and necessary business expenses incurred by you in the conduct of your duties
hereunder in accordance with the Company’s policies with respect thereto, as in
effect from time to time, including, without limitation, reasonable expenses
for business travel, lodging, meals away from home and transportation to the
Company’s offices (and from the Company’s offices to your home) related to the
discharge of your official duties hereunder and (ii) your reasonable legal
fees and expenses incurred in connection with the review and negotiation of
this Letter Agreement.

 

(e)  You will be entitled to 20 days of paid vacation for each
calendar year during which you are employed hereunder.

 

3.                                      At-Will Employment; Rights on
Termination.

 

(a) 
The nature of your employment is at-will, and as such, your employment may be
terminated by yourself or the Company for any or no reason at any time
following thirty (30) days’ advance written notice to you at the address set
forth above or to the Company at 116 Welsh Road Horsham, PA 19044, attention:
Thomas L. Fairfield, General Counsel, as applicable (during which notice period
you will continue to be entitled to your Compensation, bonus, if any, and
benefits set forth in Section 2 above); provided, however, that any
termination by the Company for Cause (as defined below) shall be effective
immediately.

 

(b) 
Upon any termination of your employment hereunder, you shall, unless otherwise
agreed by the Company, only be entitled to: (i) all benefits that you have
at such time accrued or in which you have become vested under any tax-qualified
retirement benefit plans and other benefit plans maintained by the Company in
accordance with their terms; (ii) any then accrued but unpaid Compensation
earned through the date of your termination, which shall be paid to you within
thirty (30) days following the date of your termination (the “Accrued Compensation”); (iii) reimbursement, within
forty-five (45) days following submission by you to the Company of appropriate
supporting documentation, for any unreimbursed business expenses properly
incurred by you in accordance with the Company’s policies prior to the date of
your termination, so long as that claims for such reimbursement (accompanied by
appropriate supporting documentation) are submitted to the Company within
thirty (30) days following the date of your termination; and (iv) payment
for any then accrued but unused vacation days, which shall be paid to you
within thirty (30) days following the date of your termination. Except as

 

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otherwise
provided for herein, by executing this Letter Agreement, you agree that you are
not eligible to be a participant in any severance plan or incentive
compensation plan of the Company or any of its subsidiaries.

 

(c) 
Notwithstanding the foregoing, in the event that your employment with the
Company hereunder is terminated by the Company without Cause (other than due to
death or disability) or by you for Good Reason (as defined below), in either
case, on or prior to the six month anniversary of the Commencement Date, then
subject to your (x) continued compliance with the provisions of Section 4
and any other restrictive covenants agreed to by you in writing and (y) execution,
delivery and non-revocation of a general release of claims against the Company
and its affiliates in a form reasonably acceptable to the Company (which shall
not include any change to or extension of the restrictive covenants set forth
in Section 4 below or add any additional restrictive covenants, without
your written consent), you shall be entitled to receive an amount equal to the
excess of (x) $2.5 million over (y) the amount paid to you by the
Company pursuant to Section 2(a) as of the termination date (less any
Accrued Compensation payable pursuant to Section 3(b)), which amount shall
be payable in a lump sum cash payment no later than sixty (60) days following
your termination date.

 

For
purposes of this Letter Agreement:

 

A.
“Cause” shall exist if the Board reasonably determines that any one or more of
the following events has occurred while employed by the Company: (i) your
willful and continued failure (except where due to a physical or mental
incapacity) to attempt in good faith to substantially perform your material
duties with respect to the Company which continues beyond ten (10) days
after a written demand for substantial performance is delivered to you by the
Company (such ten-day period, the “Cure Period”); (ii) any
gross misconduct by you in the conduct of your duties hereunder that causes
material and demonstrable injury, monetarily or otherwise, to the Company or
any of its subsidiaries; (iii) conviction of, or plea of guilty or nolo
contendere to, the commission of (x) a felony by you or (y) any
misdemeanor involving theft, fraud, misappropriation or moral turpitude (other
than in connection with any traffic violations); (iv) your
disqualification or bar by any governmental or self-regulatory authority from
serving in your position with the Company or your loss of any governmental or
self-regulatory license that is reasonably necessary for you to perform your
material duties with respect to the Company, in any such case, as a result of
willful misconduct by you (and for the avoidance of doubt, in connection with
an investment in or to the Company by such governmental authority, any willful
action or willful failure to act by you that adversely affects such
governmental authority’s willingness or ability to make any such investment
shall constitute willful misconduct by you hereunder; but  any requirement by such governmental
authority of any such disqualification or bar, absent any such willful action
or willful failure to act by you, shall not constitute willful
misconduct by you); (v) your willful obstruction of, or willful failure to
cooperate with (except where due to a physical or mental incapacity), any
investigation authorized by the Board; provided that exercise by you of your
constitutional rights under the Fifth Amendment of the United States
Constitution in the event of any criminal investigation of you shall not be
treated as obstruction of or failure to cooperate with any such investigation; (vi) your
material breach of the Company’s or any subsidiary’s written code of conduct
and business ethics, which breach is customarily punishable by termination of
employment by the Company; or (vii) a material breach by you of Section 4
hereof or any other restrictive covenants agreed to by you in writing, if any,
which continues beyond the Cure Period (to the extent that, in the Board’s
reasonable judgment, such breach can be cured).

 

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  PRIVILEGED AND CONFIDENTIAL

  	
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B.
The term “Good Reason” shall mean, without your consent, (i) the material
reduction of your annual rate of base salary (excluding any general salary
reduction affecting all of the Company’s senior executives and substantially
all of the full-time, salaried employee population of the Company) or annual
bonus opportunity (excluding reductions in the value of any performance bonus
pool as a result of Company or business unit’s performance or changes in the
goal amount or type of performance targets of the applicable bonus
arrangement), (ii) the Company’s removal of you from, or failure to
reelect you to, the positions set forth in Section 1 above, a material
diminution in your employment duties or responsibilities, or your failure to be
elected as a member of the Board, in each case, following a reasonable period
(not to exceed 20 days) by the Company to cure such event following receipt of
written notice by you indicating the event giving rise to Good Reason; or (iii) relocation
of your principal workplaces (i.e., corporate
offices in Horsham, Pennsylvania and Company offices in New York, New York) to
a location or locations more than 50 miles away from either such principal
workplaces. You may terminate your employment with Good Reason by providing the
Company ten (10) days’ prior written notice setting forth in reasonable
specificity the event that constitutes Good Reason, within one hundred eighty
(180) days after the occurrence of such event.

 

4.                                      Restrictive Covenants.

 

(a)   In consideration of the provisions of this Letter
Agreement, including the compensation to which you are entitled hereunder, you
hereby agree that you shall not, directly or indirectly, (i) at any time
during or after your employment with the Company, disclose any Confidential
Information (as defined below) pertaining to the business of the Company or any
of its affiliates, except when required (w) to perform your duties to the
Company or any of its subsidiaries, (x) when disclosure is required by law
or by any court, arbitrator, mediator or administrative or legislative body
(including any committee thereof) with apparent jurisdiction to order you to
disclose or make accessible any information, (y) with respect to any
litigation, arbitration or mediation involving this Letter Agreement,
including, but not limited to, to enforcement of this Letter Agreement or (z) as
to Confidential Information that becomes generally known to the public or in
the trade or industry in which the Company operates, in any case, other than
due to your violation of this Section 4(a); and (ii) at any time
during your employment with the Company and for a period of sixty (60) days
thereafter, directly or indirectly (A) own (other than less than 2% of a
publicly traded company), manage, control, be employed by, participate in or be
connected in any manner with the ownership, management, operation or control
of  any business or entity, that is
engaged primarily in commercial mortgage loan origination, commercial mortgage
lending, commercial mortgage loan servicing or investment management of
commercial real estate related assets in the United States, or any division,
subsidiary or affiliate of any such business or entity unless such division,
subsidiary or affiliate is not itself engaged in any such business activity and
you do not provide services to, or have any responsibilities regarding, such
business activities or (B) solicit or offer employment to any person who
has been employed by the Company or any of its subsidiaries at any time during
the twelve (12) months immediately preceding the termination of your
employment with the Company, other than any person who you have, directly or
indirectly, hired for employment by the Company while employed hereunder,
excluding, however, any person who becomes a member of the Company’s Executive
Committee, including, without limitation, the Chief Financial Officer or
Treasurer of the Company or any of its subsidiaries. Anything to the contrary
notwithstanding, the Company agrees that the following shall not be deemed a
violation of this Section 4(a)(ii)(B): (i) your responding to an
unsolicited request for an employment reference regarding any former employee
of the Company or any

 

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of
its subsidiaries from such former employee or from a third party by providing a
reference setting forth your personal views about such former employee or (ii) if
an entity with which you are associated offers employment or engages any
employee of the Company or any of its subsidiaries, if you were not, directly
or indirectly, involved in identifying such person as a potential recruit or
assisting in the recruitment of such employee. For purposes hereof, you shall
only be deemed to have been involved “indirectly” in soliciting or identifying
any employee if you (x) direct a third party to solicit the employee, (y) identify
an employee to a third party as a potential recruit or (z) aid, assist or
participate with a third party in soliciting an employee. If you agree in
writing to become bound by any other agreement with the Company containing
restrictive covenants of a type set forth in this Section 4(a), the
provisions of that agreement shall be read in conjunction with this Section 4.
For purposes of this Letter Agreement, the term “Confidential
Information” means all non-public information concerning trade
secrets, know-how, software, developments, inventions, processes, technology,
designs, financial data, strategic business plans or any proprietary or confidential
information, documents or materials in any form or media, including any of the
foregoing relating to research, operations, finances, current and proposed
products and services, vendors, customers, advertising and marketing, and other
non-public, proprietary, and confidential information of the Company, its
subsidiaries, GMACCH Investors LLC and any of its members.

 

(b) 
If at any time a court holds that the restrictions stated herein are
unreasonable or otherwise unenforceable under circumstances then existing, the
parties hereto agree that the maximum period, scope or geographic area
determined to be reasonable under such circumstances by such court will be
substituted for the stated period, scope or area. Because your services are
unique and because you will have had access to Confidential Information, the
parties hereto agree that money damages will be an inadequate remedy for any
breach of this Section 4. In the event of a breach or threatened breach of
this Section 4, the Company or its successors or assigns may, in addition
to other rights and remedies existing in their favor, apply to any court of
competent jurisdiction for specific performance and/or injunctive relief in
order to enforce, or prevent any violations of, the provisions hereof (without
the posting of a bond or other security).

 

5.                                      Severability; Applicable Law.

 

(a)  The provisions of this Letter Agreement
shall be deemed severable, and the invalidity or unenforceability of any
provision hereof shall not affect the validity or enforceability of the other
provisions hereof. Any controversy or claim arising out of or relating to this
Letter Agreement or the breach of this Letter Agreement that cannot be resolved
by you and the Company, other than as provided in Section 4(b) above,
shall be submitted to arbitration in New York, New York, Borough of Manhattan,
in accordance with the procedures of the American Arbitration Association,
which arbitration shall be a binding and conclusive settlement of any such
claims or disputes. Judgment upon the arbitration award may be entered by any
court having jurisdiction thereof.

 

(b) 
This Letter Agreement and any dispute hereunder shall be construed, interpreted
and governed in accordance with the laws of the State of New York without
reference to rules relating to conflicts of law. Each party shall bear the
costs of any legal fees and other fees and expenses which may be incurred in
respect of enforcing its respective rights under this Letter Agreement.

 

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6.                                      Section 409A of the Code. Notwithstanding anything herein to the
contrary, if any payment of money or other benefits due to you hereunder could
cause the application of an accelerated or additional tax under Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”), such
payment or other benefits will be deferred if deferral will make such payment
or other benefits compliant under Section 409A of the Code (for instance,
if you are a “specified employee” within the meaning of Section 409A of
the Code and you receive a payment or benefit constituting deferred
compensation hereunder upon a separation from service (within the meaning of Section 409A
of the Code, such payment or benefit shall not be delivered to you until the
earlier of your death or six months and one day following your separation from
service), or otherwise such payment or other benefits will be restructured (but
not reduced), to the extent possible, in a manner, reasonably determined by the
Board, that does not cause such an accelerated or additional tax. This Letter
Agreement is intended to comply with Section 409A of the Code and will be
interpreted accordingly. References under this Agreement to your termination of
employment shall be deemed to refer to the date upon which you have experienced
a “separation from service” within the meaning of Section 409A of the Code.
Each payment made under this Letter Agreement shall be designated as a “separate
payment” within the meaning of Section 409A of the Code. To the extent any
reimbursements or in-kind benefits due to you under this Letter Agreement
constitute “deferred compensation” under Section 409A of the Code, any
such reimbursements or in-kind benefits shall be paid to you in a manner
consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv).

 

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7.                                      Entire Agreement; Amendment.

 

(a) 
This Letter Agreement constitutes the entire agreement between the parties with
respect to the subject matter hereof; and, except as expressly provided herein,
supersedes all other prior written or oral agreements concerning such subject
matter. In the event of any inconsistency between this Letter Agreement and any
other plan, program or practice of the Company, the terms of this Letter
Agreement will control unless the Company and you otherwise agree in writing
with specific reference to this provision.

 

(b) 
This Letter Agreement may only be amended or modified by a written agreement
executed by you and the Company (or any successor).

 

8.                                      Indemnification. During your employment with the Company and
thereafter, the Company will indemnify you and your heirs and legal
representatives, to the extent applicable, for all acts or omissions occurring
while you are an officer or employee of the Company or a member of the Board to
the maximum extent provided under the Company’s charter, by-laws, and
applicable law. During your employment with the Company and thereafter, the
Company will also insure you under a policy of directors and officers’
liability insurance during your employment and thereafter to the same extent as
provided to active members of the Board.

 

9.                                      Counterparts. This Letter Agreement may be executed in
counterparts and by fax or pdf.

 

10.                               Assignment. This Agreement and all of your rights and
obligations hereunder shall not be assignable or delegable by you. Any
purported assignment or delegation by you in violation of the foregoing shall
be null and void ab initio and of no force and effect. No rights or obligations
of the Company under this Letter Agreement may be assigned or transferred by
the Company without your prior written consent, except that such rights or
obligations may be assigned or transferred pursuant to a merger, consolidation
or other similar transaction in which the Company is not the continuing entity
or a sale, liquidation or other disposition of all or substantially all of the
assets of the Company, provided that the assignee or transferee is the
successor to all or substantially all of the assets of the Company. Upon any
such assignment or transfer, the rights and obligations of the Company
hereunder shall become the rights and obligations of such assignee or
transferee.

 

11.                               Representations. You hereby represent to the Company that
the execution and delivery of this Letter Agreement by you and the Company and
the performance by you of your duties hereunder shall not constitute a breach
of, or otherwise contravene, the terms of any employment agreement or other
agreement or policy to which you are a party of otherwise bound. The Company
represents and warrants to you that (i) the execution, delivery and
performance of this Letter Agreement by the Company has been fully and validly
authorized by all necessary corporate action, (ii) the officer or
director, as applicable, signing this Letter Agreement on behalf of the Company
is duly authorized to do so, (iii) the execution, delivery and performance
of this Letter Agreement does not violate any applicable law, regulation,
order, judgment or decree or any agreement, plan or corporate governance
document to which the Company is a party or by which it is bound and (iv) upon
execution and delivery of this Letter Agreement by you and the Company, it
shall be a valid and binding obligation of the Company enforceable against it
in accordance with its terms, except to the extent that enforceability may be
limited by applicable bankruptcy, insolvency or similar laws affecting the
enforcement of creditors’ rights generally.

 

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If
the foregoing terms and conditions are acceptable and agreed to by you, please
sign on the line provided below to signify such acceptance and agreement and
return the executed copy to the undersigned.

 

	
   

  	
   

  	
  Capmark
  Financial Group Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Scott Nuttall

  
	
   

  	
   

  	
  Name:  

  	
  Scott
  Nuttall

  
	
   

  	
   

  	
  Title:

  	
  Chairman,
  Executive Development and

  
	
   

  	
   

  	
   

  	
  Compensation
  Committee

  
	
   

  	
   

  	
   

  	
  of
  the Board of Directors

  
	
   

  	
   

  	
   

  	
   

  
	
  Accepted
  and Agreed

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/
  Jay N. Levine

  	
   

  	
   

  	
   

  
	
  Jay
  N. Levine

  	
   

  	
   

  	
   

  

 

8

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