Document:

Exhibit 10.1

Exhibit 10.1

FIRST AMENDMENT TO CREDIT AGREEMENT

This FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of
February 9, 2011 (the “Effective Date”) by and among the parties hereto for the purpose of
amending that certain Credit Agreement dated as of September 18, 2009 (the “Credit
Agreement”), by and among BRONCO DRILLING COMPANY, INC. (the “Borrower”), certain
subsidiaries of the Borrower party thereto (the “Guarantors”), and BANCO INBURSA S.A.,
INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO FINANCIERO INBURSA, as Lender and as Issuing Bank (the
“Lender”).

RECITALS

WHEREAS, the Borrower has requested, and the Lender has agreed, to amend the Credit Agreement
as described below.

AGREEMENT

NOW, THEREFORE, in consideration of the premises and the mutual agreements, representations
and warranties set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

Section 1. Defined Terms. Unless otherwise defined in this Amendment, each
capitalized term used in this Amendment has the meaning given such term in the Credit Agreement.

Section 2. Amendment of Credit Agreement.

(a) The definition of the term “Commitment” in Section 1.01 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

“Commitment” means, as to the Lender, its obligation to (a) make Advances to the Borrower
pursuant to Section 2.01, and (b) purchase participation in Letter of Credit Obligations
pursuant to Section 2.14(b), in an aggregate principal amount at any one time outstanding
not to exceed $45,000,000.00, as such amount may be adjusted from time to time in accordance with
this Agreement, it being specified that any accrued interest, cost or fee payable under this
Agreement shall not be computed towards such amount.

(b) Schedule 1.01(b) of the Agreement is hereby amended and restated in its entirety to read
as set forth on Exhibit A attached hereto.

Section 3. Representations and Warranties. The Borrower and each Guarantor hereby
jointly and severally represent and warrant that, as of the date of this Amendment:

(a) The execution, delivery and performance of the Credit Agreement, as amended by this
Amendment, are within the power and authority of the Borrower and each Guarantor and have been duly
authorized by appropriate proceedings.

(b) The execution, delivery, and performance by the Borrower and each Guarantor of this
Amendment and the consummation of the transactions contemplated hereby (i) have been duly
authorized by all necessary organizational action, (ii) do not and will not (A) contravene the
terms of any Loan Party’s organizational documents, (B) violate any Legal Requirement, or (C)
conflict with or result
in any material breach or contravention of, or the creation of any Lien under any material
indenture, instrument or agreement to which any Loan Party is a party or is subject, or by which
it, or its Property, is bound or (2) any order, injunction, writ or decree of any Governmental
Authority or any arbitral award to which any Loan Party or its property is subject.

 

 

 

(c) This Amendment constitutes the legal, valid and binding obligation of the Loan Parties,
enforceable against each Loan Party in accordance with its terms, except as such enforceability may
be limited by an applicable bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium, or similar law affecting creditors’ rights generally or general principals of equity.

(d) The representations and warranties contained in Article IV of the Credit Agreement and in
each other Loan Document are true and correct on and as of the date first written above, as though
made on, and as of such date (other than those representations and warranties that expressly relate
solely to a specific earlier date, which shall remain true and correct as of such earlier date).

Section 4. Effect on Credit Documents.

(a) Except as amended herein, the Credit Agreement and the Loan Documents remain in full force
and effect as originally executed, and nothing herein shall act as a waiver of any of the Lender’s
rights under the Loan Documents, as amended.

(b) This Amendment is a Loan Document for the purposes of the provisions of the other Loan
Documents. Without limiting the foregoing, any breach of representations, warranties, and
covenants under this Amendment may be a Default or Event of Default under other Loan Documents.

Section 5. Governing Law. This Amendment shall be construed in accordance with the
laws of the State of New York and the applicable laws of the United States of America.

Section 6. Counterparts. This Amendment may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one and the same
agreement. Transmission by facsimile of an executed counterpart of this Amendment shall be deemed
to constitute due and sufficient delivery of such counterpart.

[Signature pages follow]

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their
duly authorized officers as of the first day and year written above.

	 	 	 	 	 
	 	BORROWER:

BRONCO DRILLING COMPANY, INC.

 	 
	 	By:  	/s/ MATTHEW S. PORTER
 	 
	 	 	Matthew S. Porter 	 
	 	 	Chief Financial Officer, Secretary and Treasurer 	 
	 
	 	GUARANTORS:

BRONCO EXPLORATION AND PRODUCTION LLC

 	 
	 	By:  	/s/ DAVID C. TREADWELL
 	 
	 	 	David C. Treadwell 	 
	 	 	Manager 	 
	 
	 	BRONCO MENA INVESTMENTS LLC

BRONCO MENA SERVICES LLC

BRONCO MENA MANAGEMENT LLC

EAGLE WELL SERVICE, INC.

HAYS TRUCKING, INC.

MID-STATES OILFIELD MACHINE, LLC

SADDLEBACK DRILLING, LLC

SADLEBACK PROPERTIES, LLC

 	 
	 	By:  	/s/ MATTHEW S. PORTER
 	 
	 	 	Matthew S. Porter 	 
	 	 	Chief Financial Officer 	 
	 
	 	LENDER AND ISSUING BANK:

BANCO INBURSA S.A., INSTITUCIÓN DE BANCA
 MÚLTIPLE,
GRUPO FINANCIERO INBURSA,

 	 
	 	By:  	/s/ GUILLERMO R. CABALLERO PADILLA
 	 
	 	 	Name:  	Guillermo R. Caballero Padilla 	 

Signature Page to First Amendment to Credit Agreement

 

 

 

Exhibit A

Schedule 1.01(b)

	 	 	 	 	 	 	 
	Rig #	 	Make / Model	 	HP	 
	8
	 	National 80 UE SCR	 	 	1,000	 
	10
	 	Gardner Denver 800E (SCR)	 	 	1,000	 
	11
	 	Gardner Denver 800E (SCR)	 	 	1,000	 
	12
	 	Gardner Denver 1100E (SCR)	 	 	1,500	 
	14
	 	Mid Continent U-712 EA (SCR)	 	 	1,200	 
	15
	 	Mid Continent U-712 EA (SCR)	 	 	1,200	 
	16
	 	Oilwell 840E (SCR)	 	 	1,600	 
	17
	 	Skytop Brewster NE95 (SCR)	 	 	1,600	 
	20
	 	Mid Continent U914EA (SCR)	 	 	1,400	 
	21
	 	National 1320 UE (SCR)	 	 	2,000	 
	22
	 	Continental EMSCO D-3 (SCR)	 	 	1,000	 
	23
	 	Continental EMSCO D-3 (SCR)	 	 	1,000	 
	25
	 	Mid-Continent U914 EA (SCR)	 	 	1,400	 
	26
	 	IDECO 1200E (SCR)	 	 	1,400	 
	27
	 	Mid-Continent U914 EA (SCR)	 	 	1,200	 
	28
	 	IDECO 1200 E (SCR)	 	 	1,200	 
	29
	 	Mid-Continent U914 EA (SCR)	 	 	1,400	 
	37
	 	Citation A-800E (SCR)	 	 	1,000	 
	56
	 	BDW 800MI	 	 	1,000	 
	57
	 	Continental EMSCO D3	 	 	1,000	 
	59
	 	IDECO E900 (SCR)	 	 	1,000	 
	62
	 	Skytop Brewster N46	 	 	1,000	 
	77
	 	IDECO 711	 	 	1,000	 
	97
	 	Mid-Continent U15	 	 	600Exhibit 10.1

Exhibit 10.1

SANTARUS, INC.

2011 BONUS PLAN*

	 	 	 
	*	 	Excludes those covered under the Field Sales Incentive Plans

 

 

 

Santarus, Inc.

2011 Bonus Plan

The Santarus, Inc. (“Santarus” or the “Company”) 2011 Bonus Plan (the “Plan”) is designed to offer
employees a performance-based plan that rewards the achievement of corporate goals, as well as
individual goals that are consistent with the corporate goals.

Purpose of the Plan

The Plan is designed to:

	 	•	 	Provide a bonus program that helps achieve overall corporate goals and enhances
shareholder value

	 	•	 	Reward individuals for achievement of corporate and individual goals

	 	•	 	Encourage teamwork among all disciplines within the Company

	 	•	 	Offer an attractive bonus program to help attract and retain key employees

Plan Governance

The Compensation Committee of the Board of Directors is responsible for reviewing and approving the
Plan and any proposed modifications to the Plan. The President and CEO of Santarus is responsible
for administration of the Plan; provided that the Compensation Committee of the Board of Directors
is responsible for reviewing and approving all compensation, including compensation under this
Plan, for all officers, vice presidents, executive directors and any other employees with an annual
base salary greater than or equal to $250,000.

Eligibility

All regular employees of the Company who are regularly scheduled to work at least 20 hours per week
will be eligible to participate in the Plan, other than any employee eligible to participate in the
Company’s Field Sales Incentive Plans. Temporary employees and part-time employees (who are
regularly scheduled to work less than 20 hours per week) are not included in this Plan. In order
to be eligible to receive any bonus award (or “Bonus”) under this Plan, a participant: (a) must
have commenced their employment with the Company prior to November 15, 2011 and remained
continuously employed through December 31, 2011 and until the time Bonuses are paid; and (b) must
be an employee in good standing (e.g., not on a performance improvement plan as of December 31,
2011 or an Unacceptable performer as determined during the 2011 review cycle), as determined by the
Compensation Committee of the Board of Directors or the President and CEO of Santarus, as
applicable in their sole discretion. Employees joining during the
bonus plan year will have their actual bonus amount prorated based on their actual time with the
Company during the Plan year.

 

2

 

A participant whose employment terminates voluntarily prior to the payment of a Bonus award will
not be eligible to receive a Bonus award. Continued employment is a condition of vesting. If a
participant’s employment is terminated involuntarily during the Plan year, or prior to payment of
Bonus awards, it will be at the absolute discretion of the Company whether or not a Bonus award
payment is made.

Corporate and Individual Performance

The President and CEO will present to the Compensation Committee of the Board of Directors a list
of the overall corporate goals for the Plan year, which is subject to approval by both the
Compensation Committee and the independent members of the Board of Directors. All participants in
the Plan will then develop a list of key individual goals, which will be approved by their manager
and used for the basis of the performance review and individual performance rating.

The total bonus pool for the Plan will be based on achievement of the 2011 corporate goals and,
where applicable, the individual’s annual performance review rating.

Bonus Awards

The Bonus will be paid in cash and is based on achievement of the 2011 corporate goals and
achievement of individual goals. The Bonus will be calculated by using the base salary as of
December 31, 2011, weighting factor, target bonus percentage and goal multipliers as identified
below:

Weighting Factor

The relative weight between the corporate and individual Bonus components will vary based on levels
within the organization. The weighting factors will be reviewed annually and adjusted, as
necessary or appropriate. The weighting for 2011 will be as follows:

	 	 	 	 	 	 	 	 	 
	Position	 	Corporate	 	 	Individual	 
	 
	 	 	 	 	 	 	 	 
	President and CEO
	 	 	100	%	 	 	 	 
	Group J (Officers)
	 	 	100	%	 	 	 	 
	Group I (Non-Officer VPs)
	 	 	80	%	 	 	20	%
	Group H (Executive Directors)
	 	 	80	%	 	 	20	%
	Group G (Senior Directors)
	 	 	80	%	 	 	20	%
	Group F (Directors)
	 	 	80	%	 	 	20	%
	Group E (Senior Managers)
	 	 	60	%	 	 	40	%
	Group D (Managers)
	 	 	60	%	 	 	40	%
	Group C
	 	 	40	%	 	 	60	%
	Group A & B
	 	 	20	%	 	 	80	%

 

3

 

Target Bonus Percentages 

Bonus amounts will be determined by applying a “target bonus percentage” to the base salary of
employees in the Plan. Following are the 2011 target bonus percentages:

	 	 	 	 	 
	Position	 	Target Bonus Percentages	 
	 
	 	 	 	 
	President and CEO
	 	 	65	%
	Group J
	 	 	40	%
	Group I
	 	 	35	%
	Group H
	 	 	30	%
	Group G
	 	 	25	%
	Group F
	 	 	22	%
	Group E
	 	 	17	%
	Group D
	 	 	15	%
	Group C
	 	 	12	%
	Group B
	 	 	8	%
	Group A
	 	 	7	%

The base salary as of December 31, 2011 times the target bonus percentage will be used to establish
the target Bonus amount for the 2011 year.

Goal Multipliers

Corporate Goal Multiplier: The following scale will be used by the Compensation Committee
of the Board of Directors and the independent members of the Board of Directors to determine the
“total corporate goal multiplier” based upon measurement of actual corporate performance versus the
pre-established corporate goals. The Compensation Committee will evaluate each corporate goal as
follows:

	 	 	 	 	 
	Performance Category	 	 	Goal Multiplier	 
	 
	 	 	 	 
	1. Performance for the year significantly exceeded the goal
or was excellent in view of prevailing conditions
	 	 	110% – 200%	 
	 
	 	 	 	 
	2. Performance fully met the year’s goal or is considered
achieved in view of prevailing conditions
	 	 	100% – 150%	 
	 
	 	 	 	 
	3. Performance for the year met some aspects of the goal
but not all or met most aspects in view of prevailing conditions
	 	 	75% – 100%	 
	 
	 	 	 	 
	4. The performance met at least 50% of the goal or met at least
50% in view of prevailing conditions.
	 	 	50% – 75%	 
	 
	 	 	 	 
	5. The goal was not achieved and performance was
not acceptable in view of prevailing conditions
	 	 	0%	 

 

4

 

Each goal is evaluated separately, weighting applied and a total corporate goal multiplier is
reached. A total corporate goal multiplier of at least 50% is required prior to any payout of
Bonuses under the Plan and the total corporate goal multiplier may not exceed 150%.

Individual Goal Multiplier: The “individual goal multiplier” will be determined by taking
into account the performance rating (Pinnacle, Standing Ovation, Great Performance, etc.) given to
the individual through the 2011 review cycle as well as any other relevant criteria relating to the
individual’s job performance during 2011. The specific multipliers for each performance rating
level are as follows:

	 	 	 	 	 
	Performance Rating:	 	Multiplier	 
	 
	 	 	 	 
	Pinnacle
	 	 	125	%
	Standing Ovation
	 	 	115	%
	Great Performance
	 	 	100	%
	Too New
	 	 	70	%
	Fair Performance
	 	 	50	%

Calculation of Bonus Amount

The example below shows a sample Bonus amount calculation under the Plan. First, a target Bonus
amount is calculated for each Plan participant by multiplying the employee’s base salary by the
target bonus percentage. This dollar figure is then divided between the corporate component and
the individual component based on the weighting factor for that position. This calculation
establishes specific dollar target Bonus amounts for the performance period for each of the
corporate and individual components.

At the end of the performance period, corporate and individual goal multipliers will be established
using the criteria described above. The corporate goal multiplier, which is based on overall
corporate performance, is used to calculate the corporate component of the Bonus amount for all
Plan participants. This is accomplished by multiplying the target corporate Bonus amount
established for each individual by the total corporate goal multiplier. The individual goal
multiplier, which is based on an individual’s performance rating, is used in the same way to
calculate the actual individual component of the Bonus amount.

Example: Actual Bonus Amount Calculation

	 	 	 	 	 
	Group Level
	 	B	 
	Position
	 	Executive Assistant	 
	Base Salary as of December 31
	 	$	50,000	 
	Target Bonus Percentage
	 	 	8	%
	Performance Rating
	 	Standing Ovation	 
	Target Bonus Amount
	 	$	4,000	 
	 
	 	 	 	 
	Target Bonus Amount Components:
	 	 	 	 
	Target Bonus Amount based on corporate performance (20%):
	 	$	800	 
	Target Bonus Amount based on individual performance (80%):
	 	$	3,200	 
	 
	 	 	 	 
	Corporate Goal Multiplier
	 	 	80	%
	Individual Goal Multiplier
	 	 	105	%

Actual Bonus Amount Calculation:

	 	 	 	 	 
	Corporate Bonus Amount
	 	$	640	 ($800 x 80%)
	Individual Bonus Amount
	 	$	3,360 	 ($3,200 x 105%)
	Total Actual Cash Bonus Amount
	 	$	4,000	 

 

5

 

Payment of the Bonus Amounts

Annual performance reviews for Plan participants will be completed by February 28, 2012. Payments
of actual Bonus amounts will be made as soon as practical, but not later than March 15, 2012.
Participants’ entitlement to Bonuses under this Plan does not vest until the Bonuses are actually
paid. This plan is not intended to be subject to Section 409A of the Internal Revenue Code of 1986,
as amended.

Company’s Absolute Right to Alter or Abolish the Plan

The Compensation Committee of the Board of Directors reserves the right in its absolute discretion
to terminate and/or abolish all or any portion of the Plan at any time or to alter the terms and
conditions under which a Bonus will be paid. In the event of the Plan’s termination prior to the
payment of a Bonus, such Bonus will not be payable under this Plan. Such discretion may be
exercised any time before, during, and after the Plan year is completed. No participant shall have
any vested right to receive any payment until actual delivery of such compensation.
Notwithstanding the generality of the foregoing, at the Company’s discretion all or a portion of a
Bonus payment may be made in shares of the Company’s common stock.

The Compensation Committee, in its discretion, may also determine whether to increase the payout
under the Plan for extraordinary achievement or to reduce payout if economic and business
conditions warrant such action.

Employment Duration/Employment Relationship

This Plan does not, and the Company’s policies and practices in administering this Plan do not,
constitute an express or implied contract or other agreement concerning the duration of any
participant’s employment with the Company. The employment relationship of each participant is “at
will” and may be terminated at any time by the Company or by the participant with or without cause.

 

6

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