Document:

QUEST RESOURCES CORPORATION

BONUS COMPENSATION PLAN

May 16, 2007

 

Policy

Quest Resource Corporation (the “Company”) has established a Bonus Compensation Plan (“Bonus Plan”), effective May 16, 2007, for the benefit of its employees eligible for payment under the Plan. This Plan excludes employees of Quest Midstream GP, LLC.

A bonus payment may be made annually under the Bonus Plan to eligible employees in an amount up to 15% of base compensation (excluding bonuses and other extraordinary compensation) that is earned in the year for which the bonus is paid. The determination as to whether a bonus payment will be made under the Bonus Plan for any given year, and the amount of that payment, is solely within the discretion of the Company’s Compensation Committee. A bonus payment made in any given year will not necessarily mean that a payment will be made in a subsequent year (or that the amount/percentage of any subsequent year payment will be the same as a prior year payment). This is true regardless of whether predetermined profit levels are met and/or whether performance goals are realized (by either a department or an individual employee). Moreover, not all individuals will necessarily receive the same
amount or the same proportionate amount of a bonus payment. In other words, the determination as to whether a payment is made, the amount of that payment and the employee(s) who will receive that payment are all within the sole discretion of the Company’s Compensation Committee.

Any decision by the Compensation Committee to award a bonus payment will be made on or before April 1st of the year following the year for which the bonus is awarded and will be paid as soon as practicable thereafter. A bonus payment may be made in the form of cash, Company stock or stock of an affiliated company (or any combination thereof); such method of payment shall be within the sole discretion of the Company’s Compensation Committee.

Eligibility and Performance Criteria

The Company will generally follow the guidelines set forth below in determining whether, and to whom, a bonus payment will be made. The Company reserves the right, however, to change these guidelines at any time, with or without prior notice to employees.

1.     Employees Eligible to Receive Payment. In order to receive a bonus payment for any given year, an employee must meet the following eligibility criteria:

	
             
 	
            i.
 	
            The employee must be a regular, full-time employee (defined as working at least 32 hours per week).
 

 

	
             
 	
            ii.
 	
            The employee must have completed at least ninety (90) days of service on or before December 31st of the year for which the bonus is paid. 
 

2.            Performance Criteria (non-managerial/non-professional staff). The performance criteria that may be utilized to determine whether a non-managerial/non-professional employee is entitled to a bonus payment includes, but is not necessarily limited to the following criteria:

	
             
 	
            a.
 	
            Attendance
 

	
             
 	
            b.
 	
            Attitude and positive communication skills
 

	
             
 	
            c.
 	
            Safety and accident record
 

	
             
 	
            d.
 	
            Proper and non-destructive use of equipment
 

	
             
 	
            e.
 	
            Disciplinary record
 

	
             
 	
            f.
 	
            Ability to follow supervisory instruction
 

	
             
 	
            g.
 	
            Length of service with the Company
 

	
             
 	
            h.
 	
            Quantity and quality of work performance
 

	
             
 	
            i.
 	
            Job knowledge
 

3.            Performance Criteria (managerial/professional staff). The performance criteria that may be utilized to determine whether a managerial/professional employee is entitled to a bonus payment includes, but is not necessarily limited to the following criteria (as such criteria is applicable to the individual employee). 

	
             
 	
            a.
 	
            Planning and organizational skills
 

	
             
 	
            b.
 	
            Ability to understand and implement department requirements and goals, including scheduling of tasks
 

	
             
 	
            c.
 	
            Knowledge of employee’s job position as well as positions of subordinates
 

	
             
 	
            d.
 	
            Attendance
 

	
             
 	
            e.
 	
            Length of service
 

	
             
 	
            f.
 	
            Attitude and positive communication skills
 

	
             
 	
            g.
 	
            Initiative and creativity
 

	
             
 	
            h.
 	
            Supervisory and leadership skills, including proper utilization and retention of subordinates
 

	
             
 	
            i.
 	
            Quality and quantity of work and job thoroughness
 

 

2

 

	
             
 	
            j.
 	
            Good judgment, including sound and practical business decisions
 

	
             
 	
            k.
 	
            Reliability and adaptability
 

	
             
 	
            l.
 	
            Willingness to take responsibility and to exercise independent judgment, when necessary
 

	
             
 	
            m.
 	
            Teamwork
 

	
             
 	
            n.
 	
            Department performance as compared to budgetary guidelines
 

Employment Condition

In order to receive bonus payment under the Bonus Plan, the employee must be employed on the date that the bonus payment under the Plan is paid and distributed to employees. 

Not an Employment Contract

This Policy shall not constitute a contract of employment, either express or implied. The employment of each employee of the Company is “at will” and may be terminated by either the employee or the Company at any time and for any reason. The only exception to this section is if an employee has a separate written employment agreement with the Company, signed by an appropriate officer of the Company. 

 

 

3EXHIBIT 10.1

                         EIGHTH AMENDMENT TO AMENDED AND
                            RESTATED CREDIT AGREEMENT

ESCALADE, INCORPORATED, an Indiana corporation (the "Company"), and JPMORGAN
CHASE BANK, N.A., a national banking association which is the successor by
merger to Bank One, NA (the "Bank"), agree as follows:

1.       CONTEXT.  This amendment is made in the context of the following agreed
state of facts:

a.       The Company and the Bank (then Bank One, NA) are parties to an Amended
and Restated Credit Agreement effective October 24, 2001, as modified by a First
Amendment to Amended and Restated Credit Agreement dated August 29, 2002, as
further modified by a Second Amendment to Amended and Restated Credit Agreement
dated April 17, 2003, as further modified by a Third Amendment to Amended and
Restated Credit Agreement dated June 1, 2003, as further amended by a Fourth
Amendment to Amended and Restated Credit Agreement dated July 15, 2004, as
further amended by a Fifth Amendment to Amended and Restated Credit Agreement
dated June 27, 2005, as further amended by a Sixth Amendment to Amended and
Restated Credit Agreement dated May 19, 2006, and as further amended by a
Seventh Amendment to Amended and Restated Credit Agreement dated June 30, 2006
(collectively, the "Agreement").

b.       The Company and the Bank desire to amend the Agreement.

c.       The Company and Bank have executed this document (this "Eighth
Amendment") to give effect to their agreement.

2.       AMENDMENT.

(a)      The pricing matrix appearing in the definition of Applicable Spread in
Section 1 of the Agreement is hereby amended and replaced with the following:
<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------------------------------------
LEVEL     Leverage Ratio     LIBOR        Prime        Unused        Applicable Commission     Applicable Issuance   Euribor
                                                       Fee           Rate                      Fee Rate
--------- ------------------ ------------ ------------ ------------- ------------------------- --------------------- -----------
<S>        <C>              <C>          <C>          <C>           <C>                       <C>                    <C>
V         >2.50:1.00         +175 bps     +0 bps       +37.5bps      +137.5 bps                +62.5 bps             + 175 bps
--------- ------------------ ------------ ------------ ------------- ------------------------- --------------------- -----------
IV        2.00 to 2.49:1.00  +150 bps     -37.5 bps    +25 bps       +125 bps                  +50 bps               + 150 bps
--------- ------------------ ------------ ------------ ------------- ------------------------- --------------------- -----------
III       1.50 to 1.99:1.00  +125 bps     -75 bps      +25 bps       +112.5 bps                +37.5 bps             + 125 bps
--------- ------------------ ------------ ------------ ------------- ------------------------- --------------------- -----------
II        1.00 to 1.49:1.00  +100 bps     -75 bps      +25 bps       +100 bps                  +25 bps               + 100 bps
--------- ------------------ ------------ ------------ ------------- ------------------------- --------------------- -----------
I         <1.00:1.00         +75 bps      -75 bps      +25 bpS       +87.5 bps                 +12.5 bps             + 75 bps
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(b)      The following definition contained in the Agreement is hereby amended
and restated as follows:

                                       3
<PAGE>

"Euro Revolving Loan Maturity Date" means initially May 31, 2012, and hereafter
any subsequent date to which the Commitment may be extended by the Bank.

(c)      Subsection 2.a(i) of the Agreement is modified in the following
respect:

The maximum amount of the Commitment shall equal $30,000,000.00 until May 31,
2008, on which date and on each May 31 of each year thereafter the maximum
amount of the Commitment will reduce by $5,000,000.00.

(d)      Section 2.c(i) of the Agreement is hereby amended and restated as
follows:

         c. The Revolving Loan. The London Bank will make a revolving loan to
         the Company on the following terms and subject to the following
         conditions:

                  (i) The Commitment - Use of Proceeds. From this date and until
                  the Euro Revolving Loan Maturity Date, the London Bank agrees
                  to make Advances (collectively, the "Euro Revolving Loan")
                  under a revolving line of credit from time to time to the
                  Company of amounts not exceeding in the aggregate at any time
                  outstanding Three Million Euros ((euro)3,000,000.00) (the
                  "Euro Revolving Loan Commitment"), as decreased from time to
                  time as hereinafter set forth, provided that all of the
                  conditions of lending stated in Section 7 of this Agreement
                  have been fulfilled at the time of each Advance. Proceeds of
                  the Euro Revolving Loan shall be used to accommodate overseas
                  operations, and hereafter may be used by the Company only to
                  fund working capital requirements. The initial Commitment
                  shall be available to the Company until May 31, 2012.

(e)      Subsection 5g.(i) is hereby modified as follows:

Leverage Ratio. For each period of four consecutive fiscal quarters of the
Company, the Company shall maintain a Leverage Ratio, at levels not greater than
2.75 to 1.0.

3.       CONDITIONS PRECEDENT. As conditions precedent to the effectiveness of
this Eighth Amendment, the Bank shall have received, each duly executed and in
form and substance satisfactory to the Bank, this Eighth Amendment and the
Promissory Note (Euro Revolving Loan).

4.       REIMBURSEMENT OF EXPENSES. All out-of-pocket expenses of the Bank
incurred by the Bank associated with this Eighth Amendment, including without
limitation, filing fees, recording fees and legal fees and disbursements, are to
be reimbursed by the Company to the Bank promptly upon demand therefor.

5.       REPRESENTATIONS AND WARRANTIES. To induce the Bank to enter into this
Eighth Amendment, the Company represents and warrants, as of the date of this
Eighth Amendment, that no Event of Default or Unmatured Event of Default has
occurred and is continuing and that the representations and warranties contained
in Section 3 of the Agreement are true and correct, except that the
representations contained in Section 3.d refer to the latest financial
statements furnished to the Bank by the Company pursuant to the requirements of
the Agreement.

                                       4
<PAGE>

6.       REAFFIRMATION OF THE AGREEMENT. Except as amended by this Eighth
Amendment, all terms and conditions of the Agreement shall continue unchanged
and in full force and effect and the Obligations of the Company shall continue
to be secured and guaranteed as therein provided until payment and performance
in full of all Obligations.

7.       COUNTERPARTS. This Eighth Amendment may be signed in counterparts, each
of which shall constitute an original and all of which taken together will
constitute one and the same agreement.

IN WITNESS WHEREOF, the Company, and the Bank, by their duly authorized
officers, have executed this Eighth Amendment to Credit Agreement effective as
of May 17, 2007.

ESCALADE, INCORPORATED

By: /s/  TERRY FRANDSEN
    ----------------------------------
Printed: Terry Frandsen
         -----------------------------
Title:   VP Finance & CFO
         -----------------------------

JPMORGAN CHASE BANK, N.A.

By: /s/  JOHN OTTESON
    ----------------------------------
Printed: John Otteson
         -----------------------------
Title:   Vice President Senior Banker_
         -----------------------------

                                       5

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