Document:

exv10w1

Exhibit 10.1

SECOND AMENDMENT TO CREDIT AGREEMENT

     This SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made as of December
10, 2008, among GASCO ENERGY, INC. (“Borrower”), CERTAIN SUBSIDIARIES OF BORROWER, as
Guarantors (the “Guarantors”), the LENDERS party hereto (the “Lenders”), and
JPMORGAN CHASE BANK, N.A., as Administrative Agent (“Administrative Agent”). Unless the
context otherwise requires or unless otherwise expressly defined herein, capitalized terms used but
not defined in this Amendment have the meanings assigned to such terms in the Credit Agreement (as
defined below.

WITNESSETH:

     WHEREAS, Borrower, Guarantors, Administrative Agent and Lenders have entered into that certain
Credit Agreement dated as of March 29, 2006 (as the same may be amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”); and

     WHEREAS, the Borrower, the Guarantors, the Lenders and the Administrative Agent desire to
amend the Credit Agreement as provided herein upon the terms and conditions set forth herein.

     NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein
contained and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged and confessed, the Borrower, the Guarantors, the Lenders and the Administrative
Agent hereby agree as follows:

SECTION 1. Amendments to Credit Agreement. Subject to the satisfaction or waiver in writing of
each condition precedent set forth in Section 3 of this Amendment, and in reliance on the
representations, warranties, covenants and agreements contained in this Amendment, the Credit
Agreement shall be amended in the manner provided in this Section 1 effective as of the
date Borrower satisfies the conditions set forth in Section 3 of this Amendment.

     1.1 Amended Definitions. The following definitions in Section 1.01 shall be and they
hereby are amended and restated in their respective entireties to read as follows:

     “Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of
(a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such
day plus 1/2 of 1% and (c) the Adjusted LIBO Rate for a one month Interest Period on such day (or if
such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that, for
the avoidance of doubt, the Adjusted LIBO Rate for any day shall be based on the rate appearing on
the Reuters BBA Libor Rates Page 3750 (or on any successor or substitute page of such page) at
approximately 11:00 a.m. London time on such day. Any change in the Alternate Base Rate due to a
change in the Prime Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate shall be
effective from and including the effective date of such change in the Prime Rate, the Federal
Funds Effective Rate or the Adjusted LIBO Rate, respectively.

					
	 	 	 	 	 
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     “Applicable Rate” means, for any day, with respect to any Eurodollar Loan or ABR Loan,
or with respect to the Unused Commitment Fees payable hereunder, as the case may be, the applicable
rate per annum set forth below under the caption “Eurodollar Spread”, “ABR Spread” or “Unused
Commitment Fee Rate”, as the case may be, based upon the Borrowing Base Usage applicable on such
date:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Unused
	Borrowing Base	 	Eurodollar	 	ABR	 	Commitment
	Usage	 	 Spread	 	Spread	 	Fee Rate
	3 90%

	 	225 b.p.
	 	100 b.p.
	 	50 b.p.
	3 75% and <90%

	 	200 b.p.
	 	75 b.p.
	 	50 b.p.
	3 50% and <75%

	 	175 b.p.
	 	50 b.p.
	 	50 b.p.
	< 50%

	 	150 b.p.
	 	25 b.p.
	 	50 b.p.

     “Consolidated EBITDAX” means, with respect to the Borrower and its Consolidated
Subsidiaries for any period, Consolidated Net Income for such period; plus, without
duplication and to the extent deducted in the calculation of Consolidated Net Income for such
period, the sum of (a) income or franchise Taxes paid or accrued; (b) Consolidated Interest
Expense; (c) amortization, depletion and depreciation expense; (d) any non-cash losses or charges
on any Swap Agreement resulting from the requirements of FASB Statement 133 for that period; (e)
oil and gas exploration and development expenses (including all drilling, completion, gathering,
geological and geophysical costs) for such period; (f) losses from sales or other dispositions of
assets (other than Hydrocarbons produced in the ordinary course of business), (g) other
extraordinary or non-recurring losses, (h) workover expenses for such period and (i) other non-cash
charges (excluding accruals for cash expenses made in the ordinary course of business); minus, to
the extent included in the calculation of Consolidated Net Income for such period, (i) the sum of
(1) any non-cash gains on any Swap Agreements resulting from the requirements of FASB Statement 133
for that period; (2) extraordinary or non-recurring gains; and (3) gains from sales or other
dispositions of assets (other than Hydrocarbons produced in the ordinary course of business);
provided that, with respect to the determination of Borrower’s compliance with the leverage
ratio set forth in Section 7.11(b) for any period, Consolidated EBITDAX shall be calculated (which
calculations shall, in all respects, be acceptable to, and approved by the Administrative Agent) to
give effect, on a pro forma basis, to any Acquisitions and dispositions of Oil and Gas Interests by
the Borrower and its Consolidated Subsidiaries made during such period as if such Acquisitions or
dispositions were made at the beginning of such period.

     “Consolidated Funded Indebtedness” means, as of any date, without duplication,
Indebtedness of the Borrower and the Consolidated Subsidiaries of the type described in clauses
(a), (b), (c), (e), (f), (g) or (h) of the definition of Indebtedness.

     “Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each
calendar quarter, and (b) with respect to any Eurodollar Loan, the last day of the Interest Period

					
	 	 	 	 	 
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applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar
Borrowing with an Interest Period of more than three months’ duration, each day prior to the last
day of such Interest Period that occurs at intervals of three months’ duration after the first day
of such Interest Period.

     “Interest Period” means with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar week or month that is one week, two weeks, one, two, three, six or, if available, nine or
twelve months thereafter, as the Borrower may elect; provided, that (i) if any Interest
Period would end on a day other than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless, in the case of a Eurodollar Borrowing only, such next
succeeding Business Day would fall in the next calendar month, in which case such Interest Period
shall end on the next preceding Business Day and (ii) any Interest Period pertaining to a
Eurodollar Borrowing that commences on the last Business Day of a calendar month (or on a day for
which there is no numerically corresponding day in the last calendar month of such Interest Period)
shall end on the last Business Day of the last calendar month of such Interest Period. For
purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is
made and thereafter shall be the effective date of the most recent conversion or continuation of
such Borrowing.

     “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Reuters BBA Libor Rates Page 3750 (or on any successor or substitute page of
such page, providing rate quotations comparable to those currently provided on such page of such
page, as determined by the Administrative Agent from time to time for purposes of providing
quotations of interest rates applicable to dollar deposits in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest
Period, as the rate for dollar deposits with a maturity comparable to such Interest Period. In the
event that such rate is not available at such time for any reason, then the “LIBO Rate”
with respect to such Eurodollar Borrowing for such Interest Period shall be the rate at which
dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by
the principal London office of the Administrative Agent in immediately available funds in the
London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

     “Maturity Date” means March 29, 2011.

     “Obligations” means all obligations of every nature of the Borrower from time to time
owed to the Administrative Agent, the Issuing Bank, the Lenders or any of them and the Lender
Counterparties under any Loan Document or Swap Agreement (including, with respect to any
transaction under any Swap Agreement, obligations owed under any Swap Agreement to any Person that
was a Lender Counterparty at the time such transaction was entered into), whether for principal,
interest, reimbursement of amounts drawn under any Letter of Credit, payments for early termination
of Swap Agreements, funding indemnification amounts, fees, expenses, indemnification or otherwise
and all Cash Management Obligations.

					
	 	 	 	 	 
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     “Required Lenders” means, at any time, Lenders having Credit Exposures and Unused
Commitments representing at least 66-2/3% (or if there are less than four Lenders, at least 75%) of
the sum of the Aggregate Credit Exposure and all Unused Commitments of all Lenders at such time or,
if the Aggregate Commitment has been terminated, Lenders having Credit Exposures representing at
least 66-2/3% (or if there are less than four Lenders, at least 75%) of the sum of the Aggregate
Credit Exposure of all Lenders at such time; provided that the Unused Commitment and the Credit
Exposures held or deemed held by any Defaulting Lender shall be excluded for the purposes of making
a determination of Required Lenders.

     1.2 Additional Definitions. Section 1.01 of the Credit Agreement is hereby
amended by adding the following definition in correct alphabetical order:

     “Cash Management Obligations” means, with respect to any Credit Party, any obligations
of such Credit Party owed to JPMorgan Chase Bank, N.A., any Lender, any of their respective
successors and assigns and any of their respective Affiliates in respect of treasury management
arrangements, depositary or other cash management services.

     “Defaulting Lender” means any Lender, as determined by the Administrative Agent, that
has (a) failed to fund any portion of the Loans or participations in LC Disbursements required to
be funded by it hereunder within three Business Days of the date required to be funded by it
hereunder, (b) notified the Borrower, the Administrative Agent, the Issuing Bank or any Lender in
writing that it does not intend to comply with any of its funding obligations under this Agreement
or has made a public statement to the effect that it does not intend to comply with its funding
obligations under this Agreement or under other agreements in which it commits to extend credit,
(c) failed, within three Business Days after request by the Administrative Agent, to confirm that
it will comply with the terms of this Agreement relating to its obligations to fund prospective
Loans and participations in then outstanding LC Disbursements, (d) otherwise failed to pay over to
the Administrative Agent or any other Lender any other amount required to be paid by it hereunder
within three Business Days of the date when due, unless the subject of a good faith dispute, or
(e)(i) become or is insolvent or has a parent company that has become or is insolvent or (ii)
become the subject of a bankruptcy or insolvency proceeding or appointment or has a parent company
that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver,
conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or
indicating its consent to, approval of or acquiescence in any such proceeding or appointment.

     “Minimum Collateral Amount” means, at any time, an amount equal to the lesser of (i)
eighty percent (80%) of the Engineered Value of all Borrowing Base Properties at such time and (ii)
125% of the Borrowing Base then in effect.

     1.3 Deleted Definition. The definitions of “Bundle”, “Intercreditor Agreement” and
“Percentage” shall be and they hereby are deleted from Section 1.01 of the Credit Agreement.

     1.4 Letters of Credit. Section 2.05(b) of the Credit Agreement shall be and it hereby
is amended and restated in its entirety to read as follows:

					
	 	 	 	 	 
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     (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter
of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication,
if arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the
Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal
or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal
or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire
(which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the
name and address of the beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit. If requested by the Issuing Bank, the
Borrower also shall submit a letter of credit application on the Issuing Bank’s standard form in
connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended,
renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter of
Credit the Borrower shall be deemed to represent and warrant that), after giving effect to such
issuance, amendment, renewal or extension (i) the LC Exposure shall not exceed $10,000,000 and (ii)
the Aggregate Credit Exposure shall not exceed the Aggregate Commitment. Notwithstanding the
foregoing, the Issuing Bank shall not at any time be obligated to issue, amend, renew or extend any
Letter of Credit if any Lender is at such time a Defaulting Lender hereunder, unless the Borrower
cash collateralizes each Defaulting Lender’s portion of all then outstanding LC Exposure
(calculated after giving effect to the issuance, amendment, renewal or extension of such Letter of
Credit) with respect to such Letter of Credit in accordance with the procedures set forth in
Section 2.05(j).

     1.5 Cash Collateralization of Letters of Credit. Section 2.05(j) of the Credit
Agreement shall be and it hereby is amended and restated in its entirety to read as follows:

     (j) Cash Collateralization.

     (i) If at any time the Borrower elects to cash collateralize the LC Exposure of
any Defaulting Lender pursuant to Section 2.05(b), the Borrower shall deposit in an
account with the Administrative Agent, in the name of the Administrative Agent and
for the benefit of the Lenders (the “Cash Collateral Account”), an amount in cash
equal to such Defaulting Lender’s portion of the total LC Exposure at such time as
calculated pursuant to Section 2.05(b) (less any amounts already on deposit in such
Cash Collateral Account representing cash collateral for any portion of such
Defaulting Lender’s portion of the total LC Exposure).

     (ii) If any Letter of Credit is outstanding at the time any Lender is a
Defaulting Lender, upon the written request of the Issuing Bank demanding the
deposit of cash collateral pursuant to this paragraph, the Borrower shall promptly,
and in any event within one (1) Business Day after receipt by the Borrower of
written notice, cash collateralize such Defaulting Lender’s portion of the total LC
Exposure at such time by depositing in the Cash Collateral Account

					
	 	 	 	 	 
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an amount in cash equal to such Defaulting Lender’s portion of the total LC
Exposure (less any amounts already on deposit in such Cash Collateral Account
representing cash collateral for any portion of such Defaulting Lender’s portion of
the total LC Exposure).

     (iii) If any Event of Default shall occur and be continuing, on the Business
Day that the Borrower receives notice from the Administrative Agent or the Required
Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC
Exposure representing greater than 66-2/3% of the total LC Exposure) demanding the
deposit of cash collateral for all LC Exposure pursuant to this paragraph, the
Borrower shall deposit in the Cash Collateral Account, an amount in cash equal to
the total LC Exposure as of such date plus any accrued and unpaid interest thereon;
provided that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without
demand or other notice of any kind, upon the occurrence of any Event of Default with
respect to the Borrower described in clause (h) or (i) of Article IX.

     (iv) Deposits in the Cash Collateral Account made pursuant to the foregoing
paragraphs (i), (ii) and (iii) shall be held by the Administrative Agent as
collateral for the payment and performance of the obligations of the Borrower under
this Agreement. The Administrative Agent shall have exclusive dominion and control,
including the exclusive right of withdrawal, over the Cash Collateral Account.
Other than any interest earned on the investment of such deposits, which investments
shall be made at the option and sole discretion of the Administrative Agent and at
the Borrower’s risk and expense, such deposits shall not bear interest. Interest or
profits, if any, on such investments shall accumulate in such account. Moneys in
such account shall be applied by the Administrative Agent to reimburse the Issuing
Bank for LC Disbursements for which it has not been reimbursed and, to the extent
not so applied, shall be held for the satisfaction of the reimbursement obligations
of the Borrower for the LC Exposure at such time or, if the maturity of the Loans
has been accelerated (but subject to the consent of Lenders with LC Exposure
representing 66-2/3% or more of the total LC Exposure), be applied to satisfy other
obligations of the Borrower under this Agreement.

     If the Borrower is required to provide an amount of cash collateral pursuant to paragraphs
(i), (ii) or (iii) above, such amount (to the extent not applied as aforesaid) shall be returned to
the Borrower within three (3) Business Days after (x) in the case of cash collateral provided
pursuant to paragraphs (i) or (ii) above, the applicable Defaulting Lender is no longer a
Defaulting Lender and (y) in the case of cash collateral provided pursuant to paragraph (iii)
above, all Events of Default have been cured or waived or after such Defaulting Lender is no longer
a Defaulting Lender, as applicable.

     1.6 Replacement of Lenders. Section 2.18(c) of the Credit Agreement shall be and it
hereby is amended and restated in its entirety to read as follows:

					
	 	 	 	 	 
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     (c) If in connection with any proposed amendment, modification, termination, waiver or consent
with respect to any of the provisions of this Agreement or any other Loan Document as contemplated
by Section 11.02, the consent of Required Lenders shall have been obtained but the consent of one
or more of such other Lenders (each a “Non-Consenting Lender”) whose consent is required
has not been obtained or if a Lender is a Defaulting Lender; then, the Borrower may elect to
replace such Non-Consenting Lender or Defaulting Lender, as the case may be, as a Lender party to
this Agreement in accordance with and subject to the restrictions contained in, and consents
required by Section 11.04; provided that (i) the Borrower shall have received the prior
written consent of the Administrative Agent (and if a Commitment is being assigned, the Issuing
Bank), which consent shall not unreasonably be withheld, (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans and participations in LC
Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it
hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts) and (iii) in the case of any such
assignment resulting from a claim for compensation under Section 2.14 or payments required to be
made pursuant to Section 2.16, such assignment will result in a reduction in such compensation or
payments. A Lender shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the
Borrower to require such assignment and delegation cease to apply or, in the case of a Defaulting
Lender, such Lender is no longer a Defaulting Lender.

     1.7 Disclosure. Section 4.11 of the Credit Agreement shall be and it hereby is
amended and restated in its entirety to read as follows:

     Section 4.11. Disclosure. The Borrower has disclosed to the Lenders all agreements,
instruments and corporate or other restrictions to which it or any Restricted Subsidiary is
subject, and all other matters known to it, that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect. None of the other reports,
financial statements, certificates or other information furnished by or on behalf of the Borrower
or any Restricted Subsidiary to the Administrative Agent or any Lender in connection with the
negotiation of this Agreement or delivered hereunder (as modified or supplemented by other
information so furnished), taken as a whole, contains any material misstatement of fact or omits to
state any material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that, with respect to the Projections,
the Borrower represents only that such information was prepared in good faith based on assumptions
believed to be reasonable at the time.

     1.8 Capitalization; Corporate Information. Section 4.12 of the Credit Agreement shall
be and it hereby is amended and restated in its entirety to read as follows:

     Section 4.12 Capitalization; Corporate Information. Schedule 4.12 (as the same may be
updated in accordance with Section 6.01(h)) lists, for each Credit Party, its full legal name, its
jurisdiction of organization and its federal tax identification number and, with respect to each
Restricted Subsidiary, the number of shares of capital stock or other Equity Interests outstanding
and the owner(s) of such shares or Equity Interests.

					
	 	 	 	 	 
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     1.9 Conditions Precedent to Effective Date. Clauses (m), (n) and (o) of Section 5.01
of the Credit Agreement shall be and they hereby are amended by deleting the text thereof in their
entirety and substituting in lieu thereof “[Intentionally omitted.]”.

     1.10 Conditions Precedent to Each Credit Event. Section 5.02(a) of the Credit
Agreement shall be and it hereby is amended and restated in its entirety to read as follows:

     (a) The representations and warranties of each Credit Party set forth in this Agreement shall
be true and correct in all material respects on and as of the date of such Borrowing or the date of
issuance, amendment, renewal or extension of such Letter of Credit, as applicable except to the
extent that such representations and warranties specifically refer to an earlier date, in which
case they shall be true and correct in all material respects as of such earlier date.

     1.11 Financial Statements; Other Information. Section 6.01 of the Credit Agreement
shall be and it hereby is amended by (i) deleting the “and” at the end of clause (g) thereof, (ii)
renaming clause (h) thereof as “clause (i)” and (iii) inserting a new clause (h) between clause (g)
and clause (i) to read as follows:

     (h) annually and concurrently with Borrower’s delivery of the Projections under Section
6.01(g) (or more frequently if desired by Borrower), revisions and supplements to Schedule 4.12 to
the extent necessary to ensure that such representation and warranty contained in Section 4.12 is
true and correct in all material respects; provided that delivery or receipt of such
subsequent disclosure shall not constitute a waiver by the Administrative Agent or any Lender or a
cure of any Default or Event of Default resulting from or arising under the matters disclosed; and

     1.12 Mortgages. Section 6.09 of the Credit Agreement shall be and it hereby is
amended and restated in its entirety to read as follows:

     Section 6.09. Mortgages. The Borrower will, and will cause each Guarantor that is an
owner of Borrowing Base Properties to, execute and deliver to the Administrative Agent, for the
benefit of the Secured Parties, Mortgages in form and substance acceptable to the Administrative
Agent together with such other assignments, conveyances, amendments, agreements and other writings,
including, without limitation, UCC-1 financing statements (each duly authorized and executed, as
applicable) as the Administrative Agent shall deem necessary or appropriate to grant, evidence and
perfect Liens in Borrowing Base Properties with an Engineered Value not less than the Minimum
Collateral Amount.

     1.13 Title. Section 6.10 of the Credit Agreement shall be and it hereby is amended
and restated in its entirety to read as follows:

     Section 6.10. Title Data. The Borrower will, and will cause each Guarantor that is
an owner of Mortgaged Properties to, deliver to the Administrative Agent such opinions of counsel
and other evidence of title as the Administrative Agent shall deem reasonably necessary or
appropriate to verify (i) the Borrower’s and such Guarantor’s title to Mortgaged Properties with

					
	 	 	 	 	 
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an aggregate value of not less (80%) of the Minimum Collateral Amount, and (ii) the validity,
perfection and priority of the Liens created by such Mortgages and such other matters regarding
such Mortgages as Administrative Agent shall reasonably request.

     1.14 Indebtedness. Section 7.01(j) of the Credit Agreement shall be and it hereby is
amended and restated in its entirety to read as follows:

     (j) Other unsecured Indebtedness of the Credit Parties in an aggregate principal amount
not exceeding $2,500,000 at any time outstanding.

     1.15 Liens. Section 7.02(g) of the Credit Agreement shall be and it hereby is amended
and restated in its entirety to read as follows:

     (g) Subject to the SLB Agreement, Liens securing Indebtedness permitted under Section 7.01(i);
and

     1.16 Restricted Payments. Section 7.06 of the Credit Agreement shall be and it hereby
is amended and restated in its entirety to read as follows:

     Section 7.06. Restricted Payments. The Borrower will not, nor will it permit any of
its Restricted Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly,
any Restricted Payment, except that (a) the Borrower may declare and pay dividends with respect to
its Equity Interests payable solely in additional shares of its common stock, (b) the Borrower may
make Restricted Payments pursuant to and in accordance with stock option plans or other benefit
plans for management or employees of the Borrower and its Restricted Subsidiaries in an aggregate
amount not to exceed $1,500,000 in any fiscal year, (c) any Restricted Subsidiary may make
Restricted Payments to the Borrower or any Guarantor, and (d) so long as no Default shall have
occurred and be continuing or would result from the making of such Restricted Payment, Restricted
Payments by the Borrower to fund the repurchase, redemption or other acquisition or retirement for
value of Equity Interests of the Borrower upon the termination of employment, death, permanent
disability or retirement of any officer or employee of the Borrower or any of its Subsidiaries;
provided that, the aggregate amount of such Restricted Payments pursuant to this clause (d)
shall not exceed $1,500,000 in the aggregate

     1.17 Amendments to Organizational Documents and JVEA Documents. Section 7.10 of the
Credit Agreement shall be and it hereby is amended and restated in its entirety to read as follows:

     Section 7.10. Amendments to Organizational Documents and JVEA Documents. The Borrower
will not, nor will it permit any of its Restricted Subsidiaries to, enter into or permit any
material modification or amendment of, or waive any material right or obligation of any Person
under its Organizational Documents that would adversely affect the Lenders in any material respect.
The Borrower will not, nor will it permit any of its Restricted Subsidiaries to, enter into or
permit any modification or amendment of, or waive any material right or obligation of any Person
under any JVEA Document. The Borrower will not, nor will it permit any Restricted Subsidiary other
than Gasco Production, to be a party to any JVEA Document.

					
	 	 	 	 	 
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     1.18 Leverage Ratio. Section 7.11(b) of the Credit Agreement shall be and it hereby
is amended and restated in its entirety to read as follows:

     (b) Leverage Ratio. The Borrower will not permit the ratio, determined as of the end
of any fiscal quarter ending on or after March 31, 2006, of (i) Senior Debt as of the end of such
fiscal quarter, to (ii) Consolidated EBITDAX for the four fiscal quarters then ended to be greater
than 3.50 to 1.0.

     1.19 Events of Default. Article IX of the Credit Agreement shall be and it hereby is
amended by (i) deleting the reference to “$1,000,000” in clause (k) thereof and substituting in
lieu thereof a reference to “$1,500,000”, (ii) adding the word “or” at the end of clause (n)
thereof, (iii) deleting the “;” at the end of clause (o) thereof and substituting in lieu thereof a
”.”, and (iv) deleting clause (p) thereof in its entirety.

     1.20 Amendments. Section 11.02(b) of the Credit Agreement shall be and it hereby is
amended and restated in its entirety to read as follows:

     Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Credit Parties and the
Required Lenders or by the Credit Parties and the Administrative Agent with the consent of the
Required Lenders; provided that no such agreement shall (1) increase the Borrowing Base
without the consent of each Lender, (2) increase the Applicable Percentage of any Lender or the
Aggregate Commitment above the Maximum Facility Amount without the written consent of such Lender,
(3) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest
thereon, or reduce any fees payable hereunder, without the written consent of each Lender affected
thereby, (4) postpone the scheduled date of payment of the principal amount of any Loan or LC
Disbursement, or any interest thereon, or any fees payable hereunder, or reduce the amount of,
waive or excuse any such payment, or postpone the scheduled date of expiration of any of the
Aggregate Commitment, without the written consent of each Lender affected thereby, (5) change
Section 2.17(b) or Section 2.17(c) in a manner that would alter the pro rata sharing of payments
required thereby, without the written consent of each Lender, (6) release any Credit Party from its
obligations under the Loan Documents or, except in connection with any sales, transfers, leases or
other dispositions permitted in Section 7.03, release any of the Collateral without the consent of
each Lender, or (7) change any of the provisions of this Section or the definition of “Required
Lenders” or any other provision hereof specifying the number or percentage of Lenders required to
waive, amend or modify any rights hereunder or make any determination or grant any consent
hereunder, without the written consent of each Lender; provided further that no
such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative
Agent or the Issuing Bank hereunder without the prior written consent of the Administrative Agent
or the Issuing Bank, as the case may be. Notwithstanding anything to the contrary contained
herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or
consent, hereunder, except that the Commitment of such Lender may not be increased or extended
without the consent of such Lender.

SECTION 2. New Lenders and Reallocation of Commitments and Loans. The Lenders have agreed among
themselves to reallocate their respective Commitments and to, among other

					
	 	 	 	 	 
	Second Amendment to Credit Agreement
	 	 
	 	 
	 
	 	Page 10
	 	 

 

 

things, allow a financial institution identified by J.P. Morgan Securities, Inc., in its capacity
as a Lead Arranger, in consultation with the Borrower, to become a party to the Credit Agreement as
a Lender (the “New Lender”) by acquiring an interest in the Aggregate Commitment, and
Administrative Agent and the Borrower hereby consent to such reallocation and the New Lender’s
acquisition of an interest in the Aggregate Commitment. On the date this Amendment becomes
effective and after giving effect to such reallocation of the Aggregate Commitment, the Commitment
of each Lender shall be as set forth on Schedule 2.01 of this Amendment which shall amend
and restate Schedule 2.01 to the Credit Agreement in its entirety. With respect to such
reallocation, the New Lender shall be deemed to have acquired the Commitment allocated to it from
each of the other Lenders pursuant to the terms of the Assignment and Assumption attached as
Exhibit A to the Credit Agreement as if the New Lender and the other Lenders had executed
an Assignment and Assumption with respect to such allocation. The Borrower and Administrative
Agent hereby consent to such assignment to the New Lender. To the extent requested by any Lender
in accordance with Section 2.15 of the Credit Agreement, the Borrower shall pay to such
Lender, within the time period prescribed by Section 2.15 of the Credit Agreement, any
amounts required to be paid by the Borrower under Section 2.15 of the Credit Agreement in
the event the payment of any principal of any Eurodollar Loan or the conversion of any Eurodollar
Loan other than on the last day of an Interest Period applicable thereto is required in connection
with the reallocation contemplated by this Section 2.

SECTION 3. Conditions. The amendments to the Credit Agreement contained in Section 1 and
the assignments and allocations contained in Section 2 of this Amendment shall be effective
upon the satisfaction of each of the conditions set forth in this Section 3.

     3.1 Execution and Delivery. Each Borrower shall have executed and delivered this
Amendment and any other required documents in form and substance satisfactory to Administrative
Agent.

     3.2 Fees. The Administrative Agent and the Arranger shall have received all fees
payable in the amounts and at the times separately agreed upon among the Administrative Agent, the
Arranger and the Borrower.

     3.3 Representations and Warranties. The representations and warranties of each
Borrower under the Credit Agreement are true and correct in all material respects as of such date,
as if then made (except to the extent that such representations and warranties relate solely to an
earlier date).

     3.4 No Default or Event of Default. After giving effect to this Amendment, no Default
or Event of Default shall have occurred and be continuing.

     3.5 Other Documents. The Administrative Agent shall have received such other
instruments and documents incidental and appropriate to the transaction provided for herein as the
Administrative Agent or its special counsel may reasonably request prior to the date hereof, and
all such documents shall be in form and substance reasonably satisfactory to the Administrative
Agent.

					
	 	 	 	 	 
	Second Amendment to Credit Agreement
	 	 
	 	 
	 
	 	Page 11
	 	 

 

 

     3.6 Legal Matters Satisfactory. All legal matters incident to the consummation of the
transactions contemplated hereby shall be reasonably satisfactory to special counsel for the
Administrative Agent retained at the expense of Borrower.

SECTION 4. Representations and Warranties of the Credit Parties. To induce the Lenders to enter
into this Amendment, each Credit Party hereby represents and warrants to the Administrative Agent
and the Lenders as follows:

     4.1 Reaffirmation of Representations and Warranties/Further Assurances. After giving
effect to the amendments herein, each representation and warranty of such Credit Party contained in
the Credit Agreement or in any other Loan Document is true and correct in all material respects on
the date hereof (except to the extent such representations and warranties relate solely to an
earlier date, in which case, such representations and warranties are true and correct as of such
earlier date).

     4.2 Corporate Authority; No Conflicts. The execution, delivery and performance by
such Credit Party of this Amendment and all documents, instruments and agreements contemplated
herein are within such Credit Party’s corporate or other organizational powers, have been duly
authorized by all necessary action, require no action by or in respect of, or filing with, any
court or agency of government and do not violate or constitute a default under any provision of any
applicable law or other agreements binding upon such Credit Party or result in the creation or
imposition of any Lien upon any of the assets of such Credit Party except for Liens permitted under
Section 7.02 of the Credit Agreement.

     4.3 Enforceability. This Amendment constitutes the valid and binding obligation of
such Credit Party enforceable in accordance with its terms, except as (i) the enforceability
thereof may be limited by bankruptcy, insolvency or similar laws affecting creditor’s rights
generally, and (ii) the availability of equitable remedies may be limited by equitable principles
of general application.

SECTION 5. Miscellaneous.

     5.1 Reaffirmation of Loan Documents and Liens. Any and all of the terms and
provisions of the Credit Agreement and the Loan Documents shall, except as amended and modified
hereby, remain in full force and effect. Each Credit Party hereby agrees that the amendments and
modifications herein contained shall in no manner affect or impair the liabilities, duties and
obligations of any Credit Party under the Credit Agreement and the other Loan Documents or the
Liens securing the payment and performance thereof.

     5.2 Parties in Interest. All of the terms and provisions of this Amendment shall bind
and inure to the benefit of the parties hereto and their respective successors and assigns.

     5.3 Legal Expenses. Each Credit Party hereby agrees to pay all reasonable fees and
expenses of special counsel to the Administrative Agent incurred by the Administrative Agent in
connection with the preparation, negotiation and execution of this Amendment and all related
documents.

					
	 	 	 	 	 
	Second Amendment to Credit Agreement
	 	 
	 	 
	 
	 	Page 12
	 	 

 

 

     5.4 Counterparts. This Amendment may be executed in one or more counterparts and by
different parties hereto in separate counterparts each of which when so executed and delivered
shall be deemed an original, but all such counterparts together shall constitute but one and the
same instrument; signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to the same document.
However, this Amendment shall bind no party until each Credit Party, the Lenders (or at least the
required percentage thereof), and the Administrative Agent have executed a counterpart. Delivery
of photocopies of the signature pages to this Amendment by facsimile or electronic mail shall be
effective as delivery of manually executed counterparts of this Amendment.

     5.5 Complete Agreement. THIS AMENDMENT, THE CREDIT AGREEMENT, AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

     5.6 Headings. The headings, captions and arrangements used in this Amendment are,
unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or
modify the terms of this Amendment, nor affect the meaning thereof.

[Signature Pages Follow]

					
	 	 	 	 	 
	Second Amendment to Credit Agreement
	 	 
	 	 
	 
	 	Page 13
	 	 

 

 

     IN WITNESS WHEREOF, the parties have caused this Second Amendment to Credit Agreement to be
duly executed as of the date first above written.

BORROWER:

	 	 	 	 	 	 	 
	 	GASCO ENERGY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	By:
	 	/s/ W. King Grant
 

Name:   W. King Grant
	 	 
	 

	 	 	Title:     Executive Vice President and Chief

              Financial Officer	 	 

    GUARANTORS:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	GASCO PRODUCTION COMPANY	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	 	 	/s/ W. King Grant
 

Name: W. King Grant
	 	 
	 

	 	 	 	 	 	 	 	Title:   Executive Vice President and Chief
            Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	RIVERBEND GAS GATHERING, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By: Gasco Energy, Inc.	 	 
	 	 	 	 	        Its Managing Member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	 	 	/s/ W. King Grant
 

Name:     W. King Grant
	 	 
	 

	 	 	 	 	 	 	 	Title:      Executive Vice President and Chief
               Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	MYTON OILFIELD RENTALS, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By: Gasco Energy, Inc.	 	 
	 	 	 	 	       Its Managing Member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	 	 	/s/ W. King Grant
 

Name:   W. King Grant
	 	 
	 

	 	 	 	 	 	 	 	Title:      Executive Vice President and Chief
               Financial Officer	 	 

Second Amendment to Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,	 	 
	 	 	as a Lender and as Administrative Agent,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian P. Orlando
 

Name: Brian P. Orlando
	 	 
	 

	 	 	 	Title: Vice President	 	 

     Second Amendment to Credit Agreement — Signature Page

 

 

	 	 	 	 	 	 	 
	 	 	GUARANTY BANK AND TRUST COMPANY	 	 
	 	 	as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gail F. Nofsinger
 

Name: Gail F. Nofsinger
	 	 
	 

	 	 	 	Title: Senior Vice President	 	 

Second Amendment to Credit Agreement — Signature Page

 

 

SCHEDULE 2.01

REVISED LENDERS SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Applicable	 	 	 	 	 	Maximum
	Lender	 	Title	 	Percentage	 	Commitment1	 	Commitment
	JPMorgan Chase Bank, N.A.

	 	Administrative Agent	 	 	88.8888889	%	 	$	40,000,000	 	 	$	40,000,000	 
	2200 Ross Avenue

	 	and a Lender
	 	 	 	 	 	 	 	 	 	 	 	 
	3rd Floor

Mail Code: TX1-2448

Dallas, Texas 75201

Attention: Brian Orlando

Telephone: (214) 965-3245

Facsimile: (214) 965-3280
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	with a copy to:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	JPMorgan Chase Bank, N.A.

10 South Dearborn

Floor 19 

Chicago, Illinois 60603 

Attention: Tess Siao 

Telephone: (312) 385-7051

Facsimile: (312) 385-7096

teresita.r.siao@jpmchase.com
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Guaranty Bank and Trust Company

	 	Lender
	 	 	11.1111111	%	 	$	5,000,000	 	 	 	$5,000,000	 
	1331 Seventeenth Street

2nd Floor

Denver, CO 80202

Attention: Gail J. Nofsinger

Telephone: (303) 293-5521

Facsimile: (303) 313-6758

gail.nofsinger@guarantybankco.com
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	 	 	 	 	 	100.00	%	 	$	45,000,000	 	 	$	45,000,000	 

 

			
	1	 	As of the Second Amendment Effective Date.

SCHEDULE
2.01 — Page 1exv10w1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is made by and amongst Volcano
Corporation (the “Company”),
having its principal offices at 11455 El Camino Real, Suite 460, San
Diego, CA 92130, and
JORGE J. QUINOY
(the “Executive”), effective as of
December 10,
2008.

     Whereas, the Company desires to employ the Executive in the position of
EVP, US Sales for the Company;

     Whereas, the Executive desires to be employed by the Company as its EVP, US Sales.

     Now Therefore, in consideration of the premises and the mutual covenants herein
contained, the Company and the Executive hereby agree as follows:

     1. Definitions. For purposes of this Agreement, the following terms shall have the meanings
set forth below:

          (a) “Annual Base Salary” shall mean the Executive’s rate of regular base annual compensation
prior to any reduction under (i) a salary reduction agreement pursuant to Section 401(k) or Section
125 of the Code or (ii) any plan or arrangement deferring any base salary.

          (b) “Board” shall mean the Board of Directors of the Company. The Board may delegate its
authority to a committee of the Board (the “Committee”), including without limitation a
remuneration committee, which shall consist of outside directors as defined under Section 162(m)
the Code, and related Treasury regulations, and “non-employee directors” as defined under Rule
16b-3 under the Securities Exchange Act of 1934 (the “Exchange Act”). Unless otherwise specified
in the Agreement, the term “Board” shall include any Committee (or sub-committee) to which the
Board’s authority has been delegated to.

          (c) “Cause” any of the following (i) conviction of the Executive by a court of competent
jurisdiction of any felony or a crime involving moral turpitude; (ii) the Executive’s knowing
failure or refusal to follow reasonable instructions of the CEO or reasonable policies, standards
and regulations of the Company or its affiliates; (iii) the Executive’s failure or refusal to
faithfully and diligently perform the usual, customary duties of his employment with the Company or
its affiliates; (iv) unprofessional, unethical, immoral or fraudulent conduct by the Executive; (v)
conduct by the Executive that materially discredits the Company or any affiliate or is materially
detrimental to the reputation, character and standing of the Company or any affiliate or (vi) the
Executive’s material breach of the Patent, Copyright and Nondisclosure Agreement or his Information
and Inventions Agreement. An event described in (ii) — (vi) above shall not be treated as “Cause”
until after the Executive has been given written notice of such event, failure or conduct and the
Executive fails to cure such event, failure, conduct or breach, if curable, within thirty (30) days
from such written notice. In any event, the Executive shall not be deemed to have been terminated
for Cause unless the Company shall have given a reasonable opportunity to Executive to appear
before the Board to request reconsideration.

 1.

 

Failure of the Company to meet financial or performance targets or goals shall not be deemed
to be a breach pursuant to subjections (ii) or (iii) above.

          (d) “Change in Control” shall mean the occurrence of one (1) or more of the following events:

               (i) The date that any Person (other than a trustee or other fiduciary holding securities under
an employee benefit plan of the Company, or a company owned directly or indirectly by the
stockholders of the Company in substantially the same proportions as their ownership of stock of
the Company), or more than one such Person acting as a group (as determined under Treasury
Regulations Section 1.409A-3(i)(5)(v)(B)), acquires ownership of the stock of the Company
representing more than thirty-five percent (35%) of the total combined voting power of the
Company’s then-outstanding stock;

               (ii) The date that any Person (other than a trustee or other fiduciary holding securities
under an employee benefit plan of the Company, or a company owned directly or indirectly by the
stockholders of the Company in substantially the same proportions as their ownership of stock of
the Company), or more than one such Person acting as a group (as determined under Treasury
Regulations Section 1.409A-3(i)(5)(v)(B)), acquires assets from the Company that have a total gross
fair market value equal to or more than 40% of the total gross fair market value of all of the
assets of the Company immediately before such acquisition (with “gross fair market value”
determined without regard to any liabilities associated with such assets);

               (iii) The date that the majority of members of the Board are replaced during any twelve
(12)-month period by directors whose appointment or election is not endorsed by a majority of the
members of the Board prior to the date of such appointment or election.

               (iv) Notwithstanding the foregoing, in no event shall a Change in Control be deemed to have
occurred if, with respect to the Executive, the Executive is part of a purchasing group which
consummates the Change in Control transaction. The Executive shall be deemed “part of the
purchasing group” for purposes of the preceding sentence if the Executive is an equity participant
or has agreed to become an equity participant in the purchasing company or group (except for (a)
passive ownership of less than five percent (5%) of the voting securities of the purchasing
company; or (b) ownership of equity participation in the purchasing company or group which is
otherwise deemed not to be significant, as determined prior to the Change in Control by a majority
of the non-employee continuing directors of the Board).

          (e) “COBRA” shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as well as
any state law of similar effect.

          (f) “Code” shall mean the Internal Revenue Code of 1986, as amended, and, as applicable,
Treasury Regulations promulgated thereunder.

          (g) “Company” shall mean Volcano Corporation and any successor to its business and/or assets
which assumes (either expressly, by operation of law or otherwise) and/or agrees to perform this
Agreement by operation of law or otherwise (except in determining, under

 2.

 

subsection (d) hereof, whether or not any Change in Control of the Company has occurred in
connection with such succession).

          (h) “Date of Termination” shall mean with respect to any purported termination of the
Executive’s employment, the effective date of the Executive’s Separation from Service.

          (i) “Disability” shall mean the Executive’s inability for medical reasons to perform the
essential duties of the Executive’s position for either ninety (90) consecutive calendar days or
one hundred twenty (120) business days in a twelve month period by reason of any medically
determined physical or mental impairment as determined by a medical doctor selected by written
agreement of the Company and the Executive upon the request of either party by notice to the other.

          (j) “Good Reason” shall mean (i) a material change in the character or scope of the
Executive’s position, duties, Annual Base Salary, responsibilities, reporting or authority; (ii) a
material change initiated by the Company in the living or commuting relationship currently utilized
by the Executive and/or his family or the Company’s relocation of its principal place of business
to a location that is greater than fifty (50) miles from the Atlanta office location that is being
used as of the effective date of the Agreement and the Company requiring the Executive to perform a
substantial performance of his services at such location; (iii) failure of the Company to renew the
Agreement; (iv) failure of the Company to have any successor entity assume and perform this
Agreement pursuant to Section 7(d); (iv) the material breach of the Agreement by the Company or any
successor thereto; or (v) written notice of resignation from the Executive during the sixty (60)
day period following the date which is six months after a Change in Control.

          (k) “Patent, Copyright and Nondisclosure Agreement” shall mean the Patent, Copyright and
Nondisclosure Agreement between the Executive and the Company dated March 15, 2002.

          (l) “Person” shall have the meaning ascribed thereto in Section 3(a)(9) of the Exchange Act,
as modified, applied and used in Sections 13(d) and 14(d) thereof; provided,
however, a Person shall not include (i) the Company or any of its respective subsidiaries,
(ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company
or any of its respective subsidiaries (in its capacity as such), (iii) an underwriter temporarily
holding securities pursuant to an offering of such securities.

          (m) “Release” shall mean a general mutual release of the Company and the Executive containing
a mutual non-disparagement clause in substantially the form attached hereto as Exhibit A,
subject to such modifications as mutually agreed to by the parties hereto. The Release must be
signed by the Executive and become effective in accordance with its terms not later than sixty (60)
days following the Date of Termination, unless a longer period for execution and effectiveness is
expressly required by applicable law.

          (n) “Separation from Service” shall mean the date after which (i) no further services are
reasonably expected to be performed by the Executive or (ii) the level of bona fide

 3.

 

services that the Executive would perform (whether as an employee or as an independent
contractor) would permanently decrease to no more than 20% of the average level of bona fide
services performed (whether as an employee or as an independent contractor) over the preceding
36-month period. The determination of such date shall be made in good faith by the Board based on
the applicable facts and circumstances.

     2. Term of this Agreement. The term of this Agreement shall commence upon the date of this
Agreement set forth above and shall continue until the third anniversary of the date of this
Agreement; provided however, that the term of this Agreement shall automatically be
extended for an additional term of one year on each anniversary, up to a maximum of five (5) total
years (the “Term”) unless either party to this Agreement delivers a written notice of non-extension
to the other party by at least ninety (90) days prior to the expiration of the Term. This
Agreement will expire, in all cases, on December 10, 2013.

     3. Duties; Scope of Employment; Compensation and Benefits.

          (a) Position and Duties. The Company shall employ the Executive to the position of EVP, US
Sales. During the Term, the Executive will devote substantially all of the Executive’s business
efforts and time to the Company. The Executive agrees not to actively engage in any other
employment, occupation or consulting activity for any direct or indirect remuneration without the
prior approval of the Board, provided, however, that the Executive may engage in the
following as long as such activities do not materially interfere with the Executive’s duties and
responsibilities with the Company: (i) serve on the board of one (1) unaffiliated corporation or
the boards of trade associations or charitable organizations; (ii) engage in charitable activities
and community affairs; or (iii) manage the Executive’s personal investments and affairs;
provided, however, that service on the Board on an unaffiliated corporation shall be
subject to the reasonable prior approval of the Board, which shall not be unreasonably withheld or
delayed.

          (b) Annual Base Salary. The Executive’s Annual Base Salary shall equal Three Hundred Thousand
Dollars ($300,000.00). This amount shall be reviewed annually in January of each year by the CEO
and the Board and, in the sole discretion of the Board, may be adjusted upward with such
adjustments effective January 1 of the respective year. Notwithstanding the preceding sentence,
the Executive’s annual salary may be reduced if such reduction is pro rata among substantially all
of the Company’s senior level executives as a group.

          (c) Bonus. The Executive’s target bonus opportunity shall be $150,000 (the “Target Bonus”),
assuming achievement at 100% level of the performance objectives, with amounts earned at other
levels of performance as outlined on Exhibit B. This target percentage shall be reviewed
annually in by the Board (or a duly authorized committee thereof) and, in its sole discretion, may
be adjusted upward. The Executive’s actual bonus earned shall be determined based on the
Executive’s performance against the objectives outlined on Exhibit B, as may be amended
from time to time. Any earned annual bonus will be paid in no event later than March 15 of the
year following the year of performance. The Executive shall also be eligible to receive an
additional bonus in the form of an annual stock option grant to purchase additional shares of
Company stock pursuant to the terms of the Volcano Corporation 2005

 4.

 

Equity Compensation Plan (the “Equity Plan”) based upon the Executive’s performance and
achievement of target objectives agreed to by the Company and the Executive.

          (d) Pension and Welfare Plans. During the Term, the Executive and the Executive’s dependents,
if applicable, shall be entitled to participate in all incentive, savings and retirement plans,
health and welfare benefit plans, practices, policies and programs (including, without limitation,
medical, prescription, dental, disability, employee life, group life, accidental death and travel
accident insurance plans and programs) sponsored by the Company or its affiliates on the same terms
and conditions generally applicable to executives of the Company generally.

          (e) Equity Plans. The Executive shall be entitled to participate in any stock option,
restricted stock, stock appreciation rights, or any other equity compensation plan or program
sponsored by the Company or its affiliates on the same terms and conditions generally applicable to
executives of the Company. Notwithstanding the foregoing, the Executive shall not be entitled to
awards under such plans at any time or in any particular amount. Any equity interests or rights to
purchase equity interests in the Company held by the Executive and issued pursuant to the Equity
Plan shall be administered and subject to the terms of the Equity Plan and any amendments thereto,
including, without limitation, the Equity Plan’s provisions relevant to a Change in Control.

          (f) Designation as Qualified Performance-Based Compensation. The Company may determine that
any bonus or equity awards issued under Sections 3(c) or 3(e) of this Agreement (“Awards”) shall be
considered “qualified performance-based compensation” under Section 162(m) of the Code. Any Awards
shall be administered by the Committee in accordance with this Section 3(f).

          (g) Fringe Benefits and Prerequisites. The Executive shall be entitled to fringe benefits and
prerequisites available to executives in accordance with the plans, practices, programs and
policies of the Company from time to time. Specifically to this
position, Executive shall be entitled to a monthly auto allowance in
the amount of $950.00 per month payable as $438.46 per pay period.

          (h) Expenses. The Executive shall be entitled to receive prompt reimbursement for all
reasonable expenses incurred by the Executive in accordance with the applicable policy of the
Company and its affiliated companies.

          (i) Paid Time Off. The Executive shall be entitled to accrue such number of days per year of
paid time off in accordance with the general policy of the Company.

     4. Termination. The Executive’s employment shall terminate upon the occurrence of any of the
following events:

          (a) Termination Without Cause; Resignation for Good Reason.

               (i) The Company may remove the Executive at any time without Cause from the position in which
the Executive is employed hereunder upon not less than thirty (30) days’ prior written notice of
termination to the Executive; provided, however, that, in the event that such notice is
given, the Executive shall be allowed reasonable time away from the office to seek other
employment. In addition, the Executive may initiate termination of

 5.

 

employment by resigning under this Section 4(a) for Good Reason. The Executive shall give the
Company not less than thirty (30) days’ prior written notice of termination of such resignation for
Good Reason.

               (ii) Upon any removal or resignation described in Section 4(a)(i) above, the Executive shall
be entitled to receive, subject to the effectiveness of the Release, the following:

                    (1) The Executive shall receive cash severance (the “Cash Severance”) equal to the sum of (a)
one (1) year of the Executive’s Annual Base Salary at the rate in effect immediately prior to the
Date of Termination, (b) a pro-rated bonus (the “Pro-Rated Bonus”) for the year in which the Date
of Termination occurs, calculated as the product of (i) the Target Bonus for that year and (ii) a
fraction, the numerator of which is the number of days during which the Executive was employed by
the Company in the year in which the Date of Termination occurs, and the denominator of which is
three hundred sixty five (365), and (c) one (1) years of non-health insurance premiums, calculated
as the product of (i) the aggregate monthly cost of the premiums the Executive would pay upon
conversion to individual policies of his life and disability insurance coverage under the Company’s
policies, as in effect immediately prior to the Date of Termination and (ii) twelve (12) months.

                         a. If the Executive is not a “specified employee” under Section 409A of the Code as of the
Date of Termination, the Company shall pay the Cash Severance as follows:

                              i. If the Separation from Service does not occur immediately prior to, on or within twelve
(12) months after a Change in Control, the Company will pay the Cash Severance in substantially
equal installments on the Company’s regular payroll schedule and subject to standard deductions and
withholdings over the one (1) year period immediately following the Date of Termination. However,
no payments of the Cash Severance will be made prior to the effective date of the Release. On the
first payroll pay day following the effective date of the Release, the Company will pay the
Executive in a lump sum the Cash Severance the Executive would otherwise have received on or prior
to such date but for the delay in payment related to the effectiveness of the Release, with the
balance of the Cash Severance being paid as originally scheduled.

                              ii. If the Separation from Service occurs immediately prior to, on or within twelve (12)
months after a Change in Control, the Cash Severance will be paid in a single lump sum on the first
regular payroll pay day following the effective date of the Release.

                         b. If the Executive is a “specified employee” under Section 409A of the Code as of the Date of
Termination, the Company shall pay the Cash Severance as follows:

                              i. If the Separation from Service does not occur immediately prior to, on or within twelve
(12) months after a Change in Control, the Company will pay the entire amount of the Cash Severance
in substantially equal installments on

 6.

 

the Company’s regular payroll schedule and subject to standard deductions and withholdings
over the six (6) month period commencing on the date that is six (6) months after the Date of
Termination.

                              ii. If the Separation from Service occurs immediately prior to, or within twelve (12) months
after a Change in Control, the Cash Severance will be paid in a single lump sum on the date that is
six (6) months after the Separation from Service.

               (2) If the Executive timely elects continuation health care coverage pursuant to COBRA for
himself and/or his eligible dependents, the Company will pay the applicable COBRA premiums for such
coverage for up to twelve (12) months, or such earlier time as the Executive ceases to be eligible
for such continuation coverage.

          (b) Termination for Cause; Voluntary Resignation Without Good Reason. In the event that the
Executive voluntarily terminates his employment for any reason other than Good Reason or in the
event that Company terminates the Executive for Cause no further payments shall be due under this
Agreement, except that the Executive shall be entitled to any amounts earned, accrued or owing but
not yet paid under Section 3 above and any benefits accrued or earned under the Company’s benefit
plans and programs.

          (c) Disability. In the event that the Executive’s employment is terminated due to Disability,
the Executive shall be entitled to receive all of the benefits described in Section 4(a) above, on
all of the same payment terms and conditions (including execution of an effective Release).

          (d) Death. If the Executive dies while employed by the Company, the Company pay the
Executive’s executor, legal representative, administrator or designated beneficiary (the “Heir(s)”)
any amounts earned but not yet paid under Section 3 above and any benefits accrued or earned under
the Company’s benefit plans and programs. In addition, subject to the Heir(s)’s execution of the
Release, the Company will pay to the Heir(s), the following:

               (i) If the Executive’s dependents timely elect continuation health care coverage pursuant to
COBRA, the Company will pay the applicable COBRA premiums for such coverage for up to twelve (12)
months, or such earlier date as the dependents cease to be eligible for such continuation coverage.

          (e) Compliance with Section 409A of the Code. It is intended that each installment of the
payments provided for in this Section 4 is a separate “payment” for purposes of Treasury
Regulations Section 1.409A-2(b)(2)(i). For the avoidance of doubt, it is intended that payments of
the amounts set forth in this Section 4 satisfy, to the greatest extent possible, the exemptions
from the application of Section 409A provided under Treasury Regulation 1.409A-1(b)(4) and
1.409A-1(b)(9)(v).

     5. Non-Disclosure; Proprietary Information and Inventions, etc. The Executive agrees to
continue to be bound and abide by the Information and Inventions Agreement. Executive also
acknowledges that nothing in this Agreement relieves the Executive of his obligations under the
Patent, Copyright and Nondisclosure Agreement.

 7.

 

     6. Special Reimbursement — Excise tax related to Section 4999 of the Code.

          (a) Payment of Gross-Up. In the event that the Executive becomes entitled to payments or
benefits from the Company (the “Total Payments”) which constitute an “excess parachute payment” as
defined in Section 280G(b) of the Code subject to the excise tax imposed under Section 4999 of the
Code (the “Excise Tax”), then the Company shall cause a payment to be made to the Executive of an
additional amount (the “Additional Payment”) equal to the sum of (i) the Excise Tax and (ii) such
additional sums, such that, after imposition of the Excise Tax and all taxes, including, without
limitation, any income, employment and other withholding taxes and Excise Tax (and any interest and
penalties imposed with respect thereto) imposed on the amount described in clauses (i) and (ii),
the Executive shall receive such payments and benefits from the Company free and clear of any
taxes, other than income, employment and other withholding taxes that would have been imposed on
such payments and benefits, determined without regard to the imposition of the Excise Tax.

          (b) Administration. All determinations under this Section 6 shall be made by the Company’s
independent accounting firm, in their reasonable discretion in consultation with the Executive’s
accountants. If the firm determines that an Excise Tax is payable with respect to the Total
Payments and that the Additional Payment is due to the Executive, the Company shall pay the
Additional Payment not later than one hundred and twenty (120) days after the date on which the
Executive remits the Excise Tax to the appropriate taxing authorities. Any good faith
determinations of the firm made hereunder shall be final, binding and conclusive upon the Company
and the Executive. The Executive and the Company shall each reasonably cooperate with the other in
connection with causing or allowing any shareholder vote on the Total Payments to occur and any
administrative or judicial proceedings concerning the existence or amount of any such subsequent
liability for amounts described in clauses (i) and (ii) in Section 6(a). The Company shall solely
be responsible for any legal, accounting and other costs and expenses incurred in connection with
such shareholder vote and administrative and judicial proceedings.

     7. Miscellaneous.

          (a) Legal Costs. The Company shall reimburse the Executive for reasonable legal fees and
expenses incurred if the Executive prevails on any issue which is the subject of such of a lawsuit
or arbitration brought by the Executive or the Company as a result of any dispute with any party
(including, but not limited to, the Company and/or any affiliate of the Company) regarding the
provisions of this Agreement. Otherwise, the Executive and the Company shall be responsible for
its own legal fees and expenses in connection with such action. The Company will reimburse the
Executive for reasonable legal fees and expenses directly relating to the negotiation of this
Agreement.

          (b) Arbitration. In the event of any dispute under the provisions of this Agreement, other
than a dispute in which the primary relief sought is an equitable remedy such as an injunction, the
parties shall be required to have the dispute, controversy or claim settled by arbitration in San
Diego, California in accordance with the National Rules for the Resolution of Employment Disputes
then in effect of the American Arbitration Association, before a panel of three arbitrators, two of
whom shall be selected by the Company and the Executive, respectively,

 8.

 

and the third of whom shall be selected by the other two arbitrators. Any award entered by
the arbitrators shall be final, binding and nonappealable and judgment may be entered thereon by
either party in accordance with applicable law in any court of competent jurisdiction. This
arbitration provision shall be specifically enforceable. The arbitrators shall have no authority
to modify any provision of this Agreement or to award a remedy for a dispute involving this
Agreement other than a benefit specifically provided under or by virtue of the Agreement.

          (c) No Mitigation. The Company agrees that, if the Executive’s employment is terminated
during the Term, the Executive is not required to seek other employment or to attempt in any way to
reduce any amounts payable to the Executive by the Company pursuant to this Agreement. Further,
the amount of any payment or benefit provided for in Section 4 of this Agreement shall not be
reduced by any compensation earned by the Executive as the result of employment by another
employer, by retirement benefits, or offset against any amount claimed to be owed by the Executive
to the Company or any of their respective subsidiaries. However, the severance benefits provided
under this Agreement are intended to satisfy, to the greatest extent possible, any and all
statutory obligations that may arise out of the Executive’s termination of employment including,
without limitation, the Worker Adjustment and Retraining Notification Act.

          (d) Successors. In addition to any obligations imposed by law upon any successor to the
Company, the Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to expressly assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place.

          (e) Binding Agreement. This Agreement shall inure to the benefit of and be enforceable by the
Executive’s personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If the Executive shall die while any amount would still be
payable to the Executive hereunder (other than amounts which, by their terms, terminate upon the
death of the Executive) if the Executive had continued to live, all such amounts, unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement to the executors,
personal representatives or administrators of the Executive’s estate.

          (f) Notices. For the purpose of this Agreement, notices and all other communications provided
for in this Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by United States certified mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth below, or to such other address as either party may
have furnished to the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon actual receipt:

To the Company:

Chairman of the Board of Directors

Volcano Corporation

11455 El Camino Real, Suite 460

San Diego, CA 92130

 9.

 

To the Executive:

Mr. Jorge
J. Quinoy

At the address most recently on file with the Company

With a copy to:

Cooley Godward Kronish LLP

Five Palo Alto Square — 4th Floor

3000 El Camino Real

Palo Alto, CA 94306-2155

Attn: Gordon Ho, Esq.

          (g) Amendments. No provision of this Agreement may be modified, waived or discharged unless
such waiver, modification or discharge is agreed to in writing and signed by the Executive and such
officer as may be specifically designated by the Company. No waiver by either party hereto at any
time of any breach by the other party hereto of, or compliance with, any condition or provision of
this Agreement to be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent time.

          (h) Entire Agreement. Except as otherwise provided, this Agreement contains the entire
agreement between the parties concerning the subject matter hereof and supersedes all prior
agreements, understandings, discussions, negotiations and undertakings, whether written or oral,
express or implied, between the parties with respect thereto.

          (i) Applicable Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of California without regard to the principles
of conflict of laws thereof.

          (j) Captions. The captions of this Agreement are not part of the provisions hereof and shall
have no force or effect.

          (k) Withholding. Any payments provided for hereunder shall be paid net of any applicable
withholding required under federal, state or local law and any additional withholding to which the
Executive has agreed.

          (l) Survivorship. The rights and obligations of the Company and the Executive under this
Agreement shall survive the expiration of the Term.

          (m) Mutual Intent. All parties participated in the drafting of the Agreement, and the
language used in this Agreement is the language chosen by the Executive and the Company to express
their mutual intent. The parties agree that in the event that any language, section, clause,
phrase or word used in the Agreement is determined to be ambiguous, no presumption shall arise
against or in favor of either party and that no rule of strict construction shall be applied
against either party with respect to such ambiguity.

 10.

 

          (n) Validity. The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement, which shall remain
in full force and effect.

          (o) Counterparts. This Agreement may be executed in several counterparts, each of which shall
be deemed to be an original but all of which together will constitute one and the same instrument.

     In Witness Whereof, the parties hereto have executed this Agreement as of the date
first written above.

	 	 	 	 	 	 	 
	 	 	VOLCANO CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Scott Huennekens
 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Scott Huennekens	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Jorge J. Quinoy	 	 
	 	 	 	 	 
	 	 	Jorge J. Quinoy	 	 

 11.

 

EXHIBIT A

MUTUAL RELEASE OF CLAIMS

(To be signed on or within 21 days after the employment termination date.)

     Pursuant to the terms of the Employment Agreement (the “Agreement”) by and amongst Volcano
Corporation (the “Company”), and
Jorge J. Quinoy (the “Executive”) effective as of
December 10, 2008, the Company and the Executive hereby enter into the following Mutual Release of
Claims (the “Release”):

1. Executive’s Release of Claims:

     Executive understands that, on the last date of his employment with the Company, the Company
will pay him any accrued salary and accrued and unused vacation to which he is entitled by law,
regardless of whether he signs this Release, but he is not entitled to the severance benefits
provided in the Agreement unless he signs and returns this Release to the Company and allows it to
become effective.

     In exchange for payment of benefits set forth in Section 4 of the Agreement, Executive hereby
generally and completely releases the Company and its directors, officers, employees, shareholders,
partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers,
affiliates, and assigns (collectively the “Released Parties”) of and from any and all claims,
liabilities and obligations, both known and unknown, arising out of or in any way related to
events, acts, conduct, or omissions occurring at any time prior to or at the time that Executive
signs this Release (the “Executive Released Claims”). This general release includes, but is not
limited to: (1) all claims arising out of or in any way related to Executive’s employment with the
Company or the termination of that employment; (2) all claims related to Executive’s compensation
or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense
reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership or
equity interests in the Company; (3) all claims for breach of contract, wrongful termination, and
breach of the implied covenant of good faith and fair dealing (including claims based on or arising
under the Agreement); (4) all tort claims, including claims for fraud, defamation, emotional
distress, and discharge in violation of public policy; and (5) all federal, state, and local
statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or
other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans
with Disabilities Act of 1990, the federal Age Discrimination in Employment Act (as amended)
(“ADEA”), the federal Family and Medical Leave Act, the California Labor Code (as amended), the
California Family Rights Act, and the California Fair Employment and Housing Act (as amended).

     Executive understands that notwithstanding the foregoing, the following are not included in
the Executive Released Claims (the “Executive Excluded Claims”): (i) any rights or claims for
indemnification Executive may have pursuant to any written indemnification agreement to which he is
a party, the charter, bylaws, or operating agreements of any of the Released Parties, or under
applicable law; or (ii) any rights which are not waivable as a matter of law. In addition,
Executive understands that nothing in this Release prevents him from filing, cooperating with, or

 12.

 

participating in any proceeding before the Equal Employment Opportunity Commission, the Department
of Labor, or the California Department of Fair Employment and Housing, except that Executive
acknowledges and agrees that he shall not recover any monetary benefits in connection with any such
claim, charge or proceeding with regard to any claim released herein. Executive hereby represents
and warrants that, other than the Executive Excluded Claims, Executive is not aware of any claims
he has or might have against any of the Released Parties that are not included in the Executive
Released Claims.

     Executive acknowledges that he is knowingly and voluntarily waiving and releasing any rights
he may have under the ADEA, and that the consideration given for the waiver and release in the
preceding paragraph is in addition to anything of value to which he is already entitled. Executive
further acknowledges that he has been advised by this writing that: (1) his waiver and release do
not apply to any rights or claims that may arise after the date he signs this Release; (2) he
should consult with an attorney prior to signing this Release (although he may choose voluntarily
not to do so); (3) he has twenty-one (21) days to consider this Release (although he may choose
voluntarily to sign it earlier); (4) he has seven (7) days following the date he signs this Release
to revoke it by providing written notice of revocation to the Chairman of the Company’s Board of
Directors; and (5) this Release will not be effective until the date upon which the revocation
period has expired, which will be the eighth calendar day after the date Executive signs it
provided that he does not revoke it and that the Company has signed this Release by such date (the
"Effective Date”).

     Executive hereby represents that he has been paid all compensation owed and for all hours
worked, he has received all the leave and leave benefits and protections for which he is eligible,
pursuant to the Family and Medical Leave Act, the California Family Rights Act, or otherwise, and
he has not suffered any on-the-job injury for which he has not already filed a workers’
compensation claim.

2. Company’s Release of Claims:

     The Company hereby generally and completely releases Executive of and from any and all claims,
liabilities, and obligations, both known and unknown, arising out of or in any way related to
events, acts, conduct or omissions occurring at any time prior to or at the time the Company signs
this Release (the “Company Released Claims”); provided, however, that this Release shall
not extend to: (1) any claims that may arise out of any events, acts, conduct or omissions
occurring after this Release is executed, including without limitation, any claims for breach of
the Agreement; (2) any claims arising at any time out of Executive’s obligations to protect the
Company’s proprietary information, including without limitation, any claims arising from
Executive’s obligations under his Information and Inventions Agreement and his Patent, Copyright
and Nondisclosure Agreement, claims arising under the California Uniform Trade Secrets Act, or
common law claims arising from these obligations; or (3) any claims arising from any actions by
Executive which were intentional or amount to gross negligence during his employment with the
Company which were outside of his authority as President and Chief Executive Officer or outside of
the course and scope of his employment (the “Company Excluded Claims”).

 13.

 

     The Company hereby represents and warrants that, other than the Company Excluded Claims, it is
not aware of any claims it has or might have against Executive that are not included in the Company
Released Claims.

3. Section 1542 Waiver:

     THE PARTIES UNDERSTAND THAT THIS AGREEMENT INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.
The parties acknowledge that each has read and understands Section 1542 of the California Civil
Code which reads as follows: “A general release does not extend to claims which the creditor does
not know or suspect to exist in his or her favor at the time of executing the release, which if
known by him or her must have materially affected his or her settlement with the debtor.” The
parties hereby expressly waive and relinquish all rights and benefits under that section and any
law or legal principle of similar effect in any jurisdiction with respect to their respective
release of claims herein, including but not limited to their releases of unknown and unsuspected
claims.

4. Additional Agreements:

     The parties hereby further agree as follows: (1) Executive agrees not to disparage the
Company, its parent, or its or their officers, directors, employees, shareholders, affiliates and
agents, in any manner likely to be harmful to its or their business, business reputation, or
personal reputation, and the Company agrees not to disparage Executive in any manner likely to be
harmful to his business reputation or personal reputation (although the parties may respond
accurately and fully to any question, inquiry or request for information as required by legal
process); (2) not to voluntarily (except in response to legal compulsion) assist any third party in
bringing or pursuing any proposed or pending litigation, arbitration, administrative claim or other
formal proceeding against the other party, or against the Released Parties; and (3) to reasonably
cooperate with the other party, by voluntarily (without legal compulsion) providing accurate and
complete information, in connection with such other party’s actual or contemplated defense,
prosecution, or investigation of any claims or demands by or against third parties, or other
matters, arising from events, acts, or failures to act that occurred during the period of
Executive’s employment by the Company.

	 	 	 	 	 	 	 
	 	 	Executive:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
 

 
	 	 
	 
	 	 	 	 	 	 
	 	 	Date: 	 	 
	 
	 	 	 	 	 	 
	 	 	Company:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Date: 	 	 

 14.

 

EXHIBIT B

TARGET BONUS STRUCTURE

Target Bonus for 2009: $150,000 assuming 100% of goals are achieved, pro-rated for other
achievement levels as follows:

	 	•	 	80-94%, 80-94% of $150,000
	 
	 	•	 	94-99%, 80-94% of $150,000
	 
	 	•	 	100-109%, the actual percentage achieved multiplied by $150,000
	 
	 	•	 	110% or greater: the actual percentage achieved plus 10% multiplied by $150,000

For example:

	 	•	 	if achievement is 109% of target levels, the actual bonus for 2009 would be 109% x
150,000 = $163,500
	 
	 	•	 	if achievement is 110%, the actual bonus for 2009 would be 120% x $150k = $180,000

While the actual bonus is earned only after determination of aggregate annual performance, the
Company will pay you a draw against earned bonus on a quarterly basis in an amount equal to 80% of
the projected quarterly achievement. Any amounts not earned at year end that were paid in advance
will be subject to clawback.

 15.

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