Document:

Exhibit 10.23

 

CAPMARK
FINANCIAL GROUP INC.

 

NON-EMPLOYEE DIRECTORS’

 

DEFERRED COMPENSATION AND STOCK AWARD PLAN

 

 

PURPOSE

 

The purpose of
this Capmark Financial Group Inc. Non-Employee Directors’ Deferred Compensation
and Stock Award Plan is to provide individuals who are not employees of Capmark
Financial Group Inc. or its Subsidiaries who serve as members of the Board (as
defined below) an opportunity to defer payment of all or a portion of their
Fees (as defined below) in accordance with the terms and conditions set forth
herein.

 

ARTICLE I

DEFINITIONS

 

1.1                                 “Affiliate”
means with respect to any Person, any entity directly or indirectly
controlling, controlled by or under common control with such Person.

 

1.2                                 “Board”
means the Board of Directors of the Company.

 

1.3                                 “Change
in Control” means (i) the sale of all or substantially all of the assets of
Investor LLC, the Company, or Capmark Finance Inc. to an Unaffiliated Person;
or (ii) a sale by the Company or Investor LLC, in a single transaction or in a related
series of transactions, of the voting stock of the Company resulting in more
than 50% of the voting stock of the Company being held (either directly or
indirectly through Investor LLC, and which for the avoidance of doubt includes
the distribution of any interests in the Investor LLC being distributed to any
limited partners of any Investor, which are not Affiliates of that Investor) by
an Unaffiliated Person; or (iii) a sale by the Company or Investor LLC, in an
unrelated series of transactions, of the voting stock of the Company, as a
result of which an Unaffiliated Person is (either directly or indirectly
through Investor LLC, and which for the avoidance of doubt includes the
distribution of any interests in Investor LLC being distributed to any limited
partners of any Investor, which are not Affiliates of that Investor) the single
largest holder of voting stock of the Company; or (iv) a merger or
consolidation of the Company or Investor LLC into an Unaffiliated Person;  if and only if  any such event (or as a result of any such
event) listed in (i) – (iv) above results in the inability of the Investors and
any of their respective Affiliates, either as a Group or individually (through
Investor LLC or otherwise), to elect a majority of the Board or board of
directors of the resulting entity; provided, however, to the
extent any such event listed in (i) – (iv) above occurs but at such time either
the Investors and their Affiliates as a Group, or any of the Investors or their
respective Affiliates individually (through Investor LLC or otherwise) retain
the ability to elect a majority of the Board or the board of directors of the
resulting entity, a Change of Control shall be deemed to have occurred upon any
later date on which neither the Investors and their respective Affiliates as a
Group nor any of the Investors or their Affiliates individually retain such
ability. For purposes of this definition, the term “Unaffiliated Person”
means any Person or Group who is not (x) a Investor or any member of a Investor,
(y) an Affiliate of an  Investor or any member of a Investor or (z) an
entity in which a Investor or

 

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                                                any
member of an Investor holds, directly or indirectly, a majority of the economic
interests in such entity. Notwithstanding the foregoing, if any of the
transactions described in (i), (ii) or (iv) of the preceding sentence shall
occur and the other Person or Group involved in such transaction (or its parent
entity) is an Affiliate of any Investor because it is under common control by
an ultimate parent entity, but the
day-to-day operations of, and key business decisions regarding, such Affiliate
are controlled by an entity that is, or individuals who are, principally
engaged in a business other than the management or operations of private equity
funds (any such Affiliate, a “Strategic Business Affiliate”), then the
determination of whether a Change of Control has occurred shall be made by
applying the relevant test in clause (i), (ii) or (iv) above (along with the
test of whether the Investors and their Affiliates as a Group any of the
Investors or their Affiliates individually (through Investor LLC or otherwise)
lose the ability to elect a majority of the Board) as if the Strategic Business
Affiliate was not an Affiliate of any of the Investors and by treating the
voting power of the Strategic Business Affiliate in the Company (or the
resulting entity) as if it were held by a Person or Group unaffiliated with any
of the Investors.

 

1.4                                 “Committee”
means the Executive Development and Compensation Committee of the Board or such
other committee as may be appointed by the Board to administer this Plan.

 

1.5                                 “Company”
means Capmark Financial Group Inc.

 

1.6                                 “Director”
means a member of the Board who is not an employee of the Company or any of its
Subsidiaries.

 

1.7                                 “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

1.8                                 “Fair
Market Value” means, on a per Share basis, (i) if there is a public market for
the Shares on such date, the average of the high and low closing bid prices of
the Shares on such stock exchange on which the Shares are principally trading
on the applicable date, or, if there were no sales on such date, on the closest
preceding date on which there were sales of Shares, or (ii) if there is no
public market for the Shares on such date, the fair market value of the as
determined in good faith by the Board without any discounts for minority
interests.

 

1.9                                 “Fees”
means amounts (including any annual retainer, which is generally payable in
quarterly installments in cash, or upon the election of a Director, in Shares)
earned for serving as a member of the Board or any committee of the Board.

 

1.10                           “Group”
means a “group” as such term is used in Sections 13(d) and 14(d) of the Exchange
Act.

 

1.11                           “Investor
LLC” means GMACCH Investor LLC, a Delaware limited liability company.

 

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1.12                           “Investors”
means, collectively, Kohlberg Kravis Roberts & Co. L.P., Five Mile Capital
Partners LLC, The Goldman Sachs Group, Inc., and Dune Capital Management L.P.

 

1.13                           “Person”
means a “person,” as such term is used for purposes of Section 13(d) or 14(d)
of the Exchange Act (or any successor section thereto).

 

1.14                           “Plan”
means this Capmark Financial Group Inc. Non-Employee Directors’ Deferred
Compensation and Stock Award Plan, as it may be amended from time to time.

 

1.15                           “Share
Account” means the account created by the Company pursuant to Article III of
this Plan in accordance with an election by a Director to defer Fees and
receive share-related compensation under Article II hereof.

 

1.16                           “Shares”
means the common shares of the Company, par value $0.001 per share.

 

1.17                           “Subsidiary”
means with respect to any Person, any corporation, joint venture, partnership,
limited liability company or other entity of which such Person, directly or
indirectly, owns or controls capital stock (or other equity interests)
representing more than fifty percent (50%) of the general voting power under
ordinary circumstances of such entity.

 

1.18                           “Year”
means calendar year.

 

1.19                           “He”,
“Him” or “His” shall apply equally to male and female members of the Board.

 

ARTICLE II

ELECTION TO DEFER

 

2.1                                 A
Director may elect, on or before December 31 of any Year, to irrevocably defer
payment of all or a specified part of all Fees earned during the Year following
the Year in which such election is made and succeeding Years (until the
Director ceases to be a Director or elects (in writing) to change such
election); provided,  however, that with respect to the 2006 Year
a Director may elect, within thirty (30) days after the adoption of this Plan,
to defer all or a specified part of all Fees earned on or after the date of
such election (and which have not otherwise been paid to him). In addition, any
person who shall become a Director during any Year, and who was not a Director
of the Company on the preceding December 31 or otherwise an employee of the
Company or any of its Subsidiaries who participated in any other deferred
compensation plan of the Company or any of its Subsidiaries, may elect, before
the Director’s term begins (but in no event later than thirty (30) days after
the date such person first becomes eligible to participate in this Plan), to
defer payment of all or a specified part of such Fees earned during the
remainder of such Year and for succeeding Years. Any Fees deferred

 

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                                                pursuant
to this Section 2.1 shall be paid to the Director at the time(s) and in the
manner specified in Article IV hereof.

 

2.2                                 The
election to participate in the deferred compensation portion of the Plan shall
be designated by submitting a letter in the form attached hereto as Appendix A
(the “Election Form”) to the Executive Vice President of Human Resources
or General Counsel of the Company.

 

2.3                                 The
deferral election shall continue from Year to Year unless the Director changes
such election by written request delivered to the Executive Vice President of
Human Resources or General Counsel of the Company by no later than December 31
of the Year prior to the commencement of the Year for which such changed
election shall be effective. If the Director changes his existing election to
defer Fees in order to receive Fees on a current basis, such Director may not
subsequently re-elect to defer payment of Fees for at least one (1) Year.

 

ARTICLE III

DEFERRED COMPENSATION ACCOUNTS

 

3.1                                 The
Company shall maintain separate accounts on its books and records for the Fees
deferred by each Director, based on the elections each Director has made.

 

3.2                                 If
a Director has elected to defer a portion of his Fees, the Company shall
credit, on the tenth business day after the Company determines its quarterly
results, an account (the “Share Account”) established for each Director
with the number of hypothetical Shares equal to (x) the deferred Fees otherwise
payable to the Director in such fiscal quarter as to which an election to
receive Share-related deferred compensation has been made, divided by (y) the
Fair Market Value of the Shares as of the end of the applicable fiscal quarter.

 

3.3                                 The
Company shall credit, on the date that any dividends are paid with respect to
the hypothetical Shares, the Share Account of each Director who has elected to
defer Fees with the number of hypothetical Shares equivalent to (x) the product
of (a) the amount of any dividend paid, multiplied by (b) the number of
hypothetical Shares represented in the relevant Director’s Share Account,
divided by (y) the Fair Market Value on the dividend payment date.

 

3.4                                 If
adjustments are made to the authorized or issued share capital of the Company
as a result of split-ups, recapitalizations, mergers, consolidations, or other
corporate events, an appropriate adjustment shall also be made in the number of
hypothetical Shares credited to each Director’s Share Account.

 

3.5                                 The
value of such Shares shall be computed to two decimal places.

 

3.6                                 This
Plan is intended to be a non-qualified, unfunded deferred compensation
arrangement. Nothing contained herein shall be deemed to give a Director, a
Director’s beneficiary, or any other Person any interest in the assets of the

 

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                                                Company
or create any kind of fiduciary relationship between the Company and any such
Person. To the extent that any person acquires a right to receive payments from
the Company under the Plan, such right shall be no greater than the right of
any unsecured general creditor of the Company.

 

ARTICLE IV

PAYMENT OF DEFERRED COMPENSATION

 

4.1                                 Amounts
contained in a Director’s Share Account shall be distributed beginning upon the
earlier to occur of the (i) first day of the Year following any removal or
separation from the Board; and (ii) date that a Director designates on the
Election Form as the date of distribution. The total amounts credited to a
Director’s Share Account shall be paid in Shares (equal to the number of
hypothetical Shares that have accumulated in the Director’s Share Account
pursuant to Article III), unless the Company elects to pay total amounts
credited to a Director’s Share Account in cash. If the Company elects to make
the payment in cash, the cash payment will be equal to (x) the number of Shares
credited to a Director’s Share Account, multiplied by (y) the Fair Market Value
of the Shares on the cash payment date.

 

4.2                                 Each
Director shall have the right to designate a beneficiary who is to succeed to
his right to receive payments hereunder in the event of his death. Any
designated beneficiary shall receive payments in the same manner as the
Director would have received payments if he had lived. In case of a failure of
designation or the death of a designated beneficiary without a designated
successor, the balance of the amounts contained in the Director’s Share Account
shall be payable in accordance with Section 4.1 to the Director’s or former
Director’s estate in full on the first day of the Year following the Year in
which he dies. No designation of beneficiary or change in beneficiary shall be
valid unless in writing signed by the Director and filed with the Executive
Vice President of Human Resources or General Counsel of the Company.

 

ARTICLE V

 

STOCK AWARDS

 

5.1                                 A
Director may elect, on or before December 31 of any Year, to irrevocably
receive currently in Shares payment of all or a specified part of all Fees
earned during the Year following the Year in which such election is made and
succeeding Years (until the Director ceases to be a Director or elects (in
writing) to change such election); provided,  however, that with
respect to the 2006 Year a Director may elect, within thirty (30) days after
the adoption of this Plan, to receive all or a specified part of all Fees
earned on or after the date of such election (and which have not been paid to
him). Any person who shall become a Director during any Year, and who was not a
Director of the Company on the preceding December 31, may elect, before the
Director’s term begins (but in no event later than thirty (30) days after the
date such

 

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                                                person
first becomes eligible to participate in this Plan), to receive current payment
in Shares of all or a specified part of such Fees earned during the remainder
of such Year and for succeeding Years. Any Fees paid currently in Shares
pursuant to this Section 5.1 shall be paid to the Director in the manner
specified in Section 5.3 hereof.

 

5.2                                 The
election to participate in the stock award portion of the Plan shall be
designated on the Election Form.

 

5.3                                 The
election of a Director to receive all or a portion of his Fees currently in
Shares shall continue from Year to Year unless the Director changes such
election by written request delivered to the Executive Vice President of Human
Resources or General Counsel of the Company by no later than December 31 of the
Year prior to the commencement of the Year for which such changed election
shall be effective.

 

5.4                                 If
a Director has elected to receive a portion of his Fees currently in Shares,
the Company shall issue to the Director or purchase in the open market on
behalf of the Director, on the tenth business day after the Company announces
its quarterly results, Shares equal to (x) the Fees otherwise payable to the
Director in such fiscal quarter as to which an election to receive Shares
currently has been made, divided by (y) the average Fair Market Value of the
Shares over the applicable fiscal quarter.

 

ARTICLE VI

ADMINISTRATION; INTERPRETATION; SHARES 

AVAILABLE FOR DISTRIBUTION

 

6.1                                 The
Committee shall administer and interpret the Plan in its sole discretion, and
the Company shall maintain the Plan at its expense. All decisions made by the
Committee with respect to issues hereunder shall be final and binding on all
parties.

 

6.2                                 Except
to the extent required by law, the right of any Director or any beneficiary to
any benefit or to any payment hereunder shall not be subject in any manner to
attachment or other legal process for the debts of such Director or
beneficiary, and any such benefit or payment shall not be subject to
alienation, sale, transfer assignment or encumbrance.

 

6.3                                 The
Company may, but shall not be obligated to, reserve Shares, purchase Shares in
the open market, and issue Shares for the purpose of providing for the payment
of obligations arising under this Plan.

 

ARTICLE VII 

AMENDMENT OF PLAN; GOVERNING LAW; CHANGE IN CONTROL

 

7.1                                 The
Plan may be amended, suspended or terminated in whole or in part from time to
time by the Board except that no amendment, suspension, or

 

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                                                termination
shall apply to the payment to any Director or beneficiary of a deceased
Director of any amounts previously credited to a Director’s Share Account.

 

7.2                                 This
Plan shall be governed by and construed and enforced in accordance with the
laws of New York.

 

7.3                                 In
the event of a Change in Control, all amounts contained in each Director’s
Share Account shall be distributed (in a lump sum, cash payment or in Shares,
as the Director shall elect on the Election Form) on the date of the Change in
Control. If the Director elects to receive the payment in cash, the cash
payment will be equal to (x) the number of Shares credited to a Director’s
Share Account, multiplied by (y) the Fair Market Value of the Shares on the
date of the Change in Control.

 

7.4                                 Notwithstanding
any other provision of the Plan, this Plan is intended to comply with Section
409A of the Internal Revenue Code of 1986, as amended (“Section 409A”)
and shall at all times be interpreted in accordance with such intent such that
amounts credited to Directors’ accounts shall not be taxable to Directors until
such amounts are paid to Directors in accordance with the terms of the Plan. In
furtherance thereof, no payments may be accelerated under the Plan other than
to the extent permitted under Section 409A. To the extent that any provision of
the Plan violates Section 409A such that amounts would be taxable to a Director
prior to payment or would otherwise subject a Director to a penalty tax under
Section 409A, such provision shall be automatically reformed or stricken to
preserve the intent hereof. To the extent that the Company determines that
Directors may be given greater flexibility to modify or revoke deferral
elections under the Plan in a manner consistent with Section 409A (based on
future guidance promulgated by the Internal Revenue Service and the Treasury
Department from time to time), the Company may (but shall not be obligated to)
amend the Plan to provide for such greater flexibility.

 

 

Adopted and effective the
    day of          ,
2006.

 

8

 

APPENDIX A

 

 CAPMARK FINANCIAL GROUP INC.

DIRECTOR ANNUAL RETAINER ELECTION NOTICE

 

Date                  

 

I hereby elect
to defer receipt of all or a portion of my Director’s Fees (as defined in the
Capmark Financial Group Inc. Non-Employee Directors’ Deferred Compensation and
Stock Award Plan) (the “Plan”), commencing on the date of this election
notice and for all succeeding calendar years (“Years”) (unless otherwise
changed for subsequent Years as provided for below), in accordance with my
elections indicated below.

 

I elect to
have my Director’s Fees (including all Fees for serving on any committee of the
Board (as defined in the Plan)) deferred as follows (fill in appropriate
percentage below):

 

        %
of the aggregate Director’s Fees shall be deferred to my Share Account (as
defined in the Plan), to which Capmark Financial Group Inc. (the “Company”)
shall credit hypothetical Shares (as defined in the Plan) in the manner set
forth in the Plan;

 

I understand
that my election above to defer all or a portion of my Director’s Fees shall
continue from one Year to the next, unless I change my election in writing by
no later than December 31 of the Year prior to the commencement of the Year for
which I would like my changed election to be effective. I also understand that
my Share Account generally shall become payable on the earlier to occur of (i)
the first day of January following my separation from the Board or (ii) the
date on which I elect to receive payment of my deferred Fees (the “Election
Date”) (my Election Date, if any, shall be                 ),
and in any event on the date of the occurrence of a Change in Control (as
defined in the Plan).

 

I elect to
receive the payments due to me pursuant to the Plan in the event of a Change in
Control as follows (check the method desired below):

 

	
   

  	
   

  	
   

  	
  in a cash, lump sum payment

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  in Shares

  

 

The
remainder of my Director’s Fees shall not be deferred into hypothetical Shares,
and shall be payable to me currently as follows (fill in the appropriate
percentage below):

 

(a)                                          %
of my Director’s Fees that I have elected not to defer shall be paid to me in
arrears directly in cash as they accrue;

 

(b)                                         %
of my Director’s Fees that I have elected not to defer shall be paid to me in
arrears directly in Shares as they accrue, in accordance with the Plan.

 

9

 

I understand
that (i) to the extent I make no election under this election notice or do not
designate the manner in which any portion of my Director’s Fees that I elect to
receive currently shall be payable to me, I will receive such portion(s) of my
Director’s Fees in cash; (ii) all elections I have made above with respect to
current receipt of my Fees applicable to a particular Year may not be amended
or revoked with respect to such Year, but may be amended for subsequent Years
to the extent I change my election by no later than December 31 of the Year
prior to the commencement of the Year for which I would like my changed
election to be effective, and (iii) if I amend my existing election to defer
Fees in order to receive Fees in cash and/or in Shares following each fiscal
quarter, I may not subsequently re-elect to defer payment of Fees for at least
one Year.

 

In the event
of my death prior to receipt of all or any balance of such Fees and dividends,
if any, thereon so accumulated, I designate                         
as my beneficiary to receive Shares (or, if applicable, the funds) payable.

 

 

Acknowledged
and Agreed this    day of           ,
200  .

 

 

	
   

  	
   

  
	
  Director

  

 

10Exhibit 10.24

 

AMENDMENT NO.
1 TO THE

CAPMARK FINANCIAL GROUP INC. NON-EMPLOYEE DIRECTORS’

DEFERRED COMPENSATION AND STOCK AWARD PLAN

Pursuant to resolutions duly adopted by the Board of Directors
(“Board”) of Capmark Financial Group Inc. (the “Company”) on August 1, 2007,
and in accordance with Section 7.1 of the Capmark Financial Group Inc.
Non-Employee Directors’ Deferred Compensation and Stock Award Plan (the “Director’s
Plan”), the Director’s Plan is amended as follows, effective as of August
1, 2007:

1.             Section 3.2 shall be deleted in its
entirety and replaced with the following:

“If a Director
has elected to defer all or a portion of his Fees, the Company shall credit,
with respect to each fiscal quarter, an account (the “Share Account”)
established for each Director with the number of hypothetical Shares equal to
(x) the deferred Fees otherwise payable to the Director for such fiscal quarter
as to which an election to receive Share-related deferred compensation has been
made, divided by (y) the Fair Market Value of the Shares as determined by the
Board at the first meeting of the Board occurring after the end of the
applicable fiscal quarter (the “First Meeting”).  The Company shall so credit the Director’s
Share Account within ten business days following such First Meeting.

In the event
that no such Fair Market Value determination is made by the Board at the First
Meeting, all Fees otherwise to be deferred into the Director’s Share Account
under this Section 3.2 shall instead be credited to a hypothetical cash account
maintained for the benefit of the Director (the “Cash Account”), which
Cash Account shall be payable in cash at such time(s) as the Director’s Share
Account is payable under Article IV of this Plan; provided, however,
that in the event that the Board determines the Fair Market Value of the Shares
at any meeting subsequent to the First Meeting (the “Subsequent Meeting”),
within ten business days following such Subsequent Meeting, the amount of Fees
that were credited to the Director’s Cash Account shall be converted into
hypothetical Shares to be credited to the Director’s Share Account, with the
number of hypothetical Shares to be equal to (x) the amount of Fees that had
been deferred into the Cash Account, divided by (y) the Fair Market Value of
the Shares determined by the Board at the Subsequent Meeting.”

2.             Section 5.4 shall be deleted in its
entirety and replaced with the following:

“If a Director
has elected to receive a portion of his Fees currently in Shares, the Company
shall issue to the Director or purchase in the open market on behalf of the
Director, with respect to each fiscal quarter, Shares equal to (x) the Fees
otherwise payable to the Director for such fiscal quarter as to which an
election to receive Shares currently has been made, divided by (y) the Fair
Market Value of the Shares as determined by the Board at the first meeting of
the Board occurring after the end of the applicable fiscal quarter.  The Company shall so issue or purchase such
Shares within ten business days following such first meeting.

In the event
that no such Fair Market Value determination is made by the Board at such
meeting, all Fees otherwise to be paid in the form of Shares under

 

 

this Section
5.4 shall be paid within ten business days following such first meeting in the
form of cash.”

Except as hereby expressly amended and
modified, the terms and provisions of the Director’s Plan shall remain in full
force and effect.

IN WITNESS WHEREOF, the Board has caused this Amendment No. 1 to be
executed by a duly authorized officer of the Company this 1st day of
August, 2007.

	
   

  	
  By:

  	
  /s/ Linda Pickles

  
	
   

  	
  Name:

  	
  Linda Pickles

  
	
   

  	
  Title:

  	
  EVP and Chief Administrative Officer

  

 

 

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