Employment Agreements with Named Executive Officers
Each of our named executive officers is a party to a written employment arrangement. The material terms of each of those
arrangements is described below. For a description of the compensation actually paid to the named executive officers for 2013, please
refer to the “2013 Summary Compensation Table,” above.
Employment Agreement with David Miller
Mr. Miller and J.G. Wentworth, LLC entered into an employment agreement on November 1, 2010, which was subsequently
amended on March 11, 2013. Mr. Miller’s agreement provides that he will serve as Chief Executive Officer under the agreement for
an initial period that began on November 1, 2010 and ended on November 1, 2012, and for subsequent one-year periods thereafter
unless his employment is terminated or either party provides at least 90 days’ advance notice of non-renewal prior to the end of the
applicable period.
Pursuant to the agreement, Mr. Miller is entitled to an initial annual base salary of $450,000, subject to increase, and is eligible to
receive an annual cash bonus with a target amount of 100% of his then-current base salary (maximum of 200%) based on the
achievement of annual performance objectives and other conditions which are described in more detail in the section entitled
“Overview of Our Executive Compensation Program — Elements of Compensation — Annual Cash Incentive Bonus,” above. The
agreement also provides that Mr. Miller is eligible to receive equity compensation awards and to receive fringe benefits provided to
other senior executive officers generally, including a $1,500 monthly automobile allowance (increased annually based on the
Consumer Price Index), a $1,000 monthly club allowance and a $35,000 annual cash allowance to purchase life insurance of his
choice. Mr. Miller is also eligible to receive employee health and welfare benefits as are provided to senior executive officers
generally.
The agreement provides that if Mr. Miller’s employment is terminated by the employer without “cause” (as defined in the
agreement) or by Mr. Miller for “good reason” (as described below), and Mr. Miller executes a general release of claims, then he will
receive (i) continued base salary and health and welfare benefits for 24 months following the date of termination and (ii) a pro-rated
annual incentive bonus for the year of termination, payable when, as and if such bonuses are paid to senior executives with respect to
the year of termination. For purposes of the agreement, “good reason” means, in summary, (a) Mr. Miller’s removal as Chief
Executive Officer, (b) a material reduction his duties or responsibilities or the assignment to him of duties or responsibilities that are
inconsistent with his position, including reporting to anyone other than the board of directors or a committee thereof, (c) a reduction of
his base salary, (d) relocation of his office by more than 40 miles or (e) a material breach of the agreement by J.G. Wentworth, LLC
that is not cured within 30 days.
The agreement also provides that during Mr. Miller’s employment and for the one-year period following termination of his
employment for any reason, Mr. Miller will not compete with, or solicit any vendors, customers, suppliers, employees, consultants or
agents of, J.G. Wentworth, LLC or certain related entities. The agreement further provides that Mr. Miller may not disclose any
proprietary, trade secret or confidential information involving J.G. Wentworth, LLC and certain related entities and will assign all
applicable intellectual property rights to them.
Employment Agreement with Randi A. Sellari
Ms. Sellari entered into an employment agreement with J.G. Wentworth, LLC on July 23, 2007. Ms. Sellari’s agreement provides
that she will serve as President and Chief Operating Officer under the agreement for an initial period that began on July 23, 2007 and
ended on July 23, 2010, and for subsequent one-year periods thereafter unless her employment is terminated or either party provides at
least 90 days’ advance notice of non-renewal prior to the end of the applicable period.
Pursuant to the agreement, Ms. Sellari is entitled to an initial annual base salary of $425,000, subject to increase, and is eligible to
receive an annual cash bonus with a target amount of 100% of her then-current base salary based on the achievement of annual
performance objectives and other conditions which are described in more detail in the section entitled “Overview of Our Executive
Compensation Program—Elements of Compensation—Annual Cash Incentive Bonus,” above. The agreement further provides that
Ms. Sellari is entitled to receive fringe benefits that are no less favorable than those provided to similarly situated executives,
including a $1,500 monthly automobile allowance (increased annually based on the Consumer Price Index) and a $1,000 monthly club
allowance. Ms. Sellari is also eligible to receive a $35,000 annual cash allowance to purchase life insurance of her choice. In addition,
Ms. Sellari is eligible to receive employee health and welfare benefits as are provided to senior executive officers generally.
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