This excerpt taken from the SFI DEF 14A filed Apr 27, 2007.
Chief Executive Officer. In addition to the compensation provisions described under Compensation Discussion and AnalysisCEO Compensation, our employment agreement with Mr. Sugarman provides that if Mr. Sugarmans employment is terminated without cause or if he resigns for good reason within 90 days after the first anniversary of a change of control, we will pay him a lump sum of $2.0 million. If Mr. Sugarman resigns for good reason other than following a change of control, we are obligated to pay him a lump sum of $5.0 million.
We have also agreed to pay Mr. Sugarman amounts necessary to cover the excise tax obligations, if any, resulting from a change of control. In addition, during the term of Mr. Sugarmans agreement, we have agreed to nominate him to serve as our Chairman of the Board and Chief Executive Officer.
Mr. Sugarman has agreed that, during the term of his employment and for 12 months (or 24 months under certain circumstances) thereafter, he will not engage in a business that directly and materially competes with us at the date of termination and he will not solicit any of our borrowers, lenders or employees.