November 22, 2005
Exhibit 10.38.1
November 22, 2005
CONFIDENTIAL
Re: Amendment to Employment Agreement
Dear Xxxx:
Reference is made to that certain Employment Agreement dated April 22, 2005 (the “Employment
Agreement”) by and between CapitalSource Inc. (the “Employer”) and Xxxxxxx Xxxxxxxxxxx (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 150,000 shares) shall be issued and granted by the Employer to the Executive on November
22, 2005 (the “Grant Date”). The 150,000 shares of Stock granted on the Grant Date shall vest and
become freely transferable as already provided in the Employment Agreement as follows: 50,000
shares on each of April 22, 2007, April 22, 2008, and April 22, 2009. 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.
* * *
Xxxx, please indicate your agreement to the terms set forth in this Amendment by signing below
and returning the original to me.
Sincerely, |
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/s/ Xxxx X. Xxxxxxx |
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Xxxx X. Xxxxxxx Chairman and Chief Executive Officer |
AGREED:
/s/ Xxxxxxx Xxxxxxxxxxx
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11/22/05 |
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Xxxxxxx Xxxxxxxxxxx
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Date |
