Document:

Offer Letter to Mr. O'Shaughnessy

 Exhibit 10(a) 

 

 

 May 2, 2011 

Robert T. O’Shaughnessy 
 (Address on file)

 Dear Bob: 
 I am pleased to offer
you the position of Executive Vice President & Chief Financial Officer with the PulteGroup, Inc. reporting to me, Richard Dugas - Chairman, President & CEO. 
 Salary: 
 Your starting salary will be $700,000 per year. 

Annual Incentive: 
 Under the
Company’s Annual Incentive Program (“AIP”), your 2011 target will be set at $700,000 (100% of your 2011 base salary). The award opportunity is based on the achievement of Company financial goals as approved by the
Compensation & Management Development Committee of the Board of Directors (“Committee”). For 2011, we will provide you with a payout reflecting the higher of $360,000 or the annual award based on actual Company performance. Any
bonus payable to you under the AIP shall be paid to you no later than March 15th of the calendar year following the calendar year in which the bonus is earned. 
 Long-Term Incentive: 
 Under the Company’s Long-Term Incentive Program
(“LTIP”), your target will be set at $700,000 (100% of your 2011 base salary) for the 2011-2013 performance period. The LTIP award is based on the achievement of pre-established three-year Company financial goals as approved by the
Committee and will be paid at the end of the three year performance period in accordance with and subject to the terms of the LTIP. 

Annual Equity Grant: 
 You will
also be eligible for a 2011 annual equity grant consisting of Company stock options and/or restricted shares, which will be awarded in February 2012 as approved by the Committee. The estimated value of the annual equity award is expected to be
approximately $850,000, which may vary based on the stock price at the time of grant. The vesting provisions, number of shares and mix of equity you will receive shall be determined by the Committee with direction from the CEO and the
Committee’s outside compensation consultant. 

 Payments in lieu of Forfeited Compensation: 

You shall also receive a one-time cash payment and restricted share award to compensate you for the value of your unvested restricted stock units that you
will forfeit as a result of your separation from your previous employer. 
  

	 	•	 	 A cash payment of $180,000 will be included in the first regular paycheck after your start date. 

 

	 	•	 	 A restricted share award having a value of approximately $570,000 will be granted and approved during the first Committee meeting after your start date
(“The Sign-On RS Award”). The Sign-On RS Award will vest 100% three years after the date of grant subject to your continued employment with the Company. You will be provided with a grant acceptance agreement shortly after the award is
made. In the case of your voluntary termination before the vesting date, you will forfeit your Sign-On RS Award. In the case of an involuntary termination of your employment by the Company without cause prior to the vesting date, the Sign-On RS
Award will be forfeited and you shall receive, in lieu of the restricted shares subject to the Sign-On RS Award, a cash payment within 60 days of such termination equal to the number of shares subject to the Sign-On RS Award multiplied by the
closing share price on the date of such termination and subject to your timely execution of a signed release with terms satisfactory to the Company. 

  

	 	•	 	 The guaranteed portion of the AIP discussed above under “Annual Incentive” is intended to compensate you for the annual bonus that you will
forfeit in connection with your separation from your previous employer. 

 Sign-On Compensation: 

We will also provide a Sign-On Stock Option Grant of 100,000 stock options, which will be granted and approved during the first Committee meeting after
your start date. These stock options will vest over a four year period subject to your continued employment with the Company (50% vest two years from the grant date, 25% vest three years from the grant date and the remaining 25% vest four years from
grant date). You will be provided with a grant acceptance agreement shortly after the award is made. As a condition of your receipt of the Sign-On Stock Option Grant, you will be asked to sign an agreement regarding non-competition and
confidentiality.
 In addition, the Company will provide you with a sign on bonus of $50,000 to cover transition related expenses and to offset
the loss of perquisites from your former employer. This sign-on bonus will be included in the first regular paycheck after your start date. 

Benefits & Perquisites: 

All company benefit programs, including medical, dental, life insurance, disability insurance and 4 weeks of vacation are available to you on the first
day of the month following 60 days of employment. 
 As a Senior Executive, you will be eligible for the Tax & Financial Planning
Assistance program, which reimburses you for any tax and financial counseling up to $7,500 annually. You will also be eligible for the Executive Health Examination Program, which reimburses you up to $4,000 annually for routine medical examinations,
blood tests, X-rays and other related diagnostic programs. The reimbursements shall be paid to you in accordance with the Company’s policies and procedures covering expense reimbursements, but in no event later than the last day of the calendar
year following the calendar year in which you incurred the reimbursable expense. Any amount of expenses eligible for reimbursement during a calendar year shall not affect the amount of expenses eligible for reimbursement during any other calendar
year. The right to any reimbursement pursuant to this offer shall not be subject to liquidation or exchange for any other benefit. 

 Severance: 
 Severance benefits for Senior Executives are determined at the discretion of the Company’s Board of Directors, but have generally been a minimum of 12 months of salary and COBRA continuation, a
pro-rated bonus based on year-end results and consideration for the value of unvested restricted stock awards. 
 We anticipate that your start
date will be May 31st, 2011. On your first day, please plan to meet with Jamie Bieth at 9:00 a.m. to complete your new hire paperwork. Please bring with you identification to demonstrate your eligibility to work in the United States as noted on
the attached Form I-9, List of Acceptable Documents. 
 This offer in its entirety is contingent upon the successful completion of a reference/
background check. 
 Bob, welcome to the Pulte team! 
 Sincerely, 
 /s/ Richard Dugas 
 Richard Dugas 
 Chairman, President & CEO 

 

	copy:	Jim Ellinghausen – EVP HR 

Payroll Department 
  

 
 By my signature, I agree to the terms of this
letter and understand that I am employed at-will as defined by the Employee Handbook. 
  

					
	 /s/ Robert T. O’Shaughnessy
	 		 	 5/9/11

	Robert “Bob” T. O’Shaughnessy	 		 	DateTARP Compensation Agreement

 Exhibit 10.1 
 TARP COMPENSATION AGREEMENT 
 THIS TARP COMPENSATION AGREEMENT (the
“Agreement”) is entered into as of March 31, 2011, by and between PrivateBancorp, Inc., a Delaware corporation (the “Company”), and the undersigned executive of the Company (“Grantee”).

 1. TARP Compensation. In light of restrictions on the manner, form and timing of payment of compensation otherwise
applicable to Grantee as a result of TARP Requirements (as defined below), the Company and Grantee agree to the following adjustments to Grantee’s compensation: 

(a) Cash: The Company will pay to Grantee additional cash compensation (“TARP Cash”), subject to
the terms and conditions of this Agreement, for services performed for the Company by Grantee. For 2011, aggregate TARP Cash will be the amount set forth on Schedule A. 

(b) Salary Stock: The Company will issue to Grantee shares of “salary stock,” subject to the terms and
conditions of this Agreement and the Company’s 2007 Long-Term Incentive Compensation Plan (“Plan”), for services performed for the Company by Grantee. For 2011, the aggregate amount of such “salary stock” will be the
amount set forth on Schedule A, to be paid in the form of shares of the Company’s common stock (“Salary Stock”), which will constitute a “Stock Award” under the Plan, and cash remitted to pay applicable
withholding taxes. 
 Any TARP Cash or Salary Stock for periods after 2011 will be determined by the Committee in its sole discretion. Payment
of TARP Cash and Salary Stock will not affect Grantee’s participation in any Company benefit plan for 2011. Notwithstanding the foregoing, Grantee shall not be entitled to participate in the Company’s Corporate Incentive Plan for 2011.

 2. Payment. TARP Cash will be paid, and Salary Stock will be issued, from time to time in installments corresponding
to the Company’s payroll dates, as in effect from time to time, for the period commencing as soon as practicable after the date hereof through and including December 31, 2011 (each, a “Grant Date”). The number of shares of
Salary Stock issuable on each Grant Date (the “Shares”) will be calculated by dividing (a) the Grant Date Amount set forth on Schedule A, net of applicable payroll taxes relating to such Grant Date Amount (which tax
amounts will be remitted in cash to the taxing authorities by the Company), by (b) the closing price of the Company’s common stock as of the applicable Grant Date. If any fractional share results from this calculation, the number of Shares
issued will be rounded down to the nearest whole number. Shares issued pursuant to this Agreement will be 100% vested upon their Grant Date. Shares awarded pursuant to this Agreement will be issued on the Grant Date or as soon as administratively
practicable thereafter in accordance with procedures applicable to equity awards generally. 

 3. Restrictions on Transfer; Release of Shares. 

(a) As a condition to receiving Shares under this Agreement, Grantee hereby agrees that Shares may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of prior to the earlier of (i) the second anniversary of the Grant Date of such Shares or (ii) the dates of Grantee’s death or permanent disability; provided, Grantee may
transfer Shares without consideration for estate planning purposes to a trust or limited partnership, in each case controlled by Grantee and for the benefit of Grantee or his family; provided further, that prior to any such transfer, the
transferee will deliver a written acknowledgement in form and substance reasonably acceptable to the Company agreeing to be bound by any restriction relating to the Shares set forth herein, in the Plan or in that certain Employment Term Sheet
Agreement dated October 30, 2007, between Grantee and the Company (“Term Sheet”). 
 (b)
Subject to the Plan, the restrictions on transfer on the Shares will lapse upon the occurrence of a Change of Control (as defined in the Plan). 
 (c) In furtherance of the foregoing, Grantee agrees that the Company (or its designated equity plan administrator) will retain custody of the Shares until the date the Shares are no longer subject to the
foregoing transfer restrictions. As promptly as practicable after the lapse of the restrictions on transfer set forth in this Agreement, the Company will cause the Shares to be released to Grantee or Grantee’s legal representative. 

4. Rights as a Stockholder. Grantee will have the rights of a stockholder with respect to Shares granted hereunder, including the
right to vote the Shares and receive any dividends that may be paid thereon; provided, however, that any additional common shares or other securities that Grantee may be entitled to receive pursuant to a stock dividend, stock split,
combination of shares, recapitalization, merger, consolidation, separation or reorganization or any other change in the capital structure of the Company will be subject to the same terms and conditions as the Shares covered by this Agreement,
including Section 3. 
 5. Termination of Employment. Upon termination of Grantee’s employment for any reason,
other than death or permanent disability or following a Change of Control, the Shares that remain subject to the transfer restrictions as of the date of such termination will remain subject to the provisions of Section 3. Grantee’s right
to subsequent TARP Cash payments or grants of Shares will immediately terminate upon such the date of such termination of employment, except that Grantee will be entitled to receive the portion of TARP Cash or Shares that was accrued but unpaid as
of the date of termination. 
 6. General Provisions. 

(a) Definitions. Capitalized terms not defined in this Agreement have the meanings ascribed to them in the Plan.

 (b) Nontransferable. Except to the extent permitted by Section 3(a), no rights under this
Agreement will be assignable or transferable by Grantee other than by will or by the laws of descent and distribution, the rights and the benefits of this Agreement may be exercised and received during Grantee’s lifetime only by Grantee or
Grantee’s legal representative. 
 (c) No Obligation to Employ. Nothing in this Agreement will confer
on Grantee any right to continue in the employ of, or to continue or establish any other relationship with, the Company, or limit in any way the right of the Company to terminate Grantee’ employment or other relationship at any time, with or
without cause, subject to Grantee’s rights set forth in the Term Sheet. 

  
 -2-

 (d) Amendment; Committee Discretion. The Committee may in its sole
discretion and without Grantee’s consent, at any time terminate, amend, suspend or modify this Agreement and any such action shall have no consequence with respect to the Term Sheet; provided that, notwithstanding the foregoing, no such
action will materially adversely affect Grantee’s rights and obligations under this Agreement with respect to amounts that Grantee has already earned and accrued without Grantee’s prior written consent (or the consent of Grantee’s
estate, if such consent is obtained after Grantee’s death). Any amendment of this Agreement will be in writing signed by an authorized officer of the Company. The Committee will have full discretion with respect to any actions to be taken or
determinations to be made in connection with this Agreement, and its determinations will be final, binding and conclusive. 
 (e) TARP Compliance. The terms and conditions of this Agreement are intended to comply with applicable law and will be subject to and limited by any requirements or limitations that may apply
under any applicable law, including the Emergency Economic Stabilization Act of 2008 as amended from time to time, including as amended by the American Recovery and Reinvestment Act of 2009, and all regulations and guidance promulgated thereunder
from time to time (collectively, the “TARP Requirements”). In the event that all or any portion of this Agreement is found to be conflict with the TARP Requirements, then in such event this Agreement will be automatically modified
to reflect the requirements of the law, regulation and/or guidance, and this Award will be interpreted and administered accordingly. As a condition of your receiving the TARP Cash and Salary Stock, you acknowledge that (i) this Agreement
remains subject to the TARP Requirements, (ii) it is subject to modification in order to comply with TARP Requirements, and (iii) you agree to immediately repay all amounts that may have been paid to you under this Agreement that are
later determined to be in conflict with the TARP Requirements. 
 (f) Other Benefits. TARP Cash and Salary
Stock will not be taken into account as “base salary,” “bonus” or otherwise in determining the amount of any base salary- or bonus-based benefit or right to which Grantee may be entitled under any Company plan or program in which
Grantee participates or any agreement to which Grantee is a party. 
 (g) Entire Agreement. The Shares are
granted pursuant to this Agreement and the Plan, which is incorporated herein by reference. This Agreement (including Schedule A), the Plan and such other documents as may be executed in connection with this Agreement constitute the entire agreement
and understand of the parties hereto with respect to the subject matter hereof, and supersede all prior understandings and agreements with respect to such subject matter. Any action taken or decision made by the Committee or the Company arising out
of or in connection with the construction, administration, interpretation or effect of this Agreement will lie within its sole and absolute discretion, and will be final, conclusive and binding on Grantee and all persons claiming under or through
Grantee. 
 (h) Notices. Any notice required to be given or delivered to the Company under the terms of
this Agreement will be in writing and addressed to the Corporate Secretary of the Company at its principal corporate offices. Any notice required to be given or delivered to Grantee will be in writing and addressed to Grantee’s address
indicated in Grantee’s employment file. 

  
 -3-

 (i) Successors and Assigns. The Company may assign any of its rights
under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon Grantee and Grantee’s
heirs, executors, administrators, legal representatives, successors and assigns. 
 (j) Governing Law.
This Agreement will be governed and construed in accordance with the laws of the State of Illinois applicable to contracts to be made and performed entirely therein without giving effect to the principles of conflicts of law thereof or of any other
jurisdiction. 
 (k) Counterparts. This Agreement may be executed in counterparts, each of which will be
deemed an original, and all of which taken together will be considered one agreement. 
 IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of the date first set forth above. 
  

									
	COMPANY:	 		 	GRANTEE:
			
	PrivateBancorp, Inc.	 		 	
					
	By:	 	/s/ Kevin M. Killips	 		 	By:	 	/s/ Larry D. Richman
		 	 Kevin M. Killips
 Chief
Financial Officer
	 		 	Name:	 	Larry D. Richman

  
 -4-

 SCHEDULE A 

 

			
	 Grantee
	  	Larry D. Richman
		
	 TARP Cash
	  	$650,000
		
	 Salary Stock
	  	$650,000
		
	 Grant Date Amount
	  	$32,500, assuming 20 semi-monthly pay periods (all grants for March shall be awarded on the March 31, 2011 Grant Date)
		
	 Grant Date
	  	Each payroll date from and after March 15, 2011, through and including December 31, 2011

  
 A-1

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