Document:

Exhibit 10.1

 

AMENDMENT NO. 5 

TO

AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS AMENDMENT NO. 5 TO AMENDED AND RESTATED
CREDIT AGREEMENT (this “Amendment”) dated as of February 26, 2008,
is entered into among GLADSTONE BUSINESS LOAN, LLC, (the “Borrower”), TAHOE
FUNDING CORP., as CP Lender, RELATIONSHIP FUNDING COMPANY, LLC, as CP
Lender, DEUTSCHE BANK AG, NEW YORK BRANCH (“Deutsche Bank”) and KEYBANK,
NATIONAL ASSOCIATION (“KeyBank”), as Committed Lenders (collectively,
the “Committed Lenders”), Deutsche Bank and KeyBank as Managing Agents
(in such capacity, collectively the “Managing Agents”) and Deutsche Bank
as Administrative Agent (in such capacity, the “Administrative Agent”).  Capitalized terms used herein without
definition shall have the meanings ascribed thereto in the “Credit Agreement”
referred to below.

 

PRELIMINARY STATEMENTS

 

                                                A.                                   Reference is
made to that certain Amended and Restated Credit Agreement, dated as of May 26,
2006, among the Borrower, Gladstone Management Corporation, as Servicer, the CP
Lenders, the Committed Lenders, the Managing Agents and the Administrative
Agent (as amended, modified or supplemented from time to time, the “Credit
Agreement”).

 

                                                B.                                     The parties
hereto have agreed to amend certain provisions of the Credit Agreement upon the
terms and conditions set forth herein.

 

SECTION 1.  Amendment.  Subject to the satisfaction of the condition
set forth in Section 3 hereof, the parties hereto hereby agree:

 

(a)                                  to delete clause (a) in the
definition of “Commitment” in Section 1.1 of the Credit Agreement
and substitute the following therefor:

 

(a) For each Committed Lender, the commitment of such Committed
Lender to fund any Advance to the Borrower in an amount not to exceed
$125,000,000, as such amount may be modified in accordance with the terms
hereof;

 

(b)                                 to delete the definition of “Facility
Amount” in Section 1.1 of the Credit Agreement and substitute the
following therefor:

 

Facility Amount:  At any time,
$250,000,000; provided, however, that on or after the Termination Date,
the Facility Amount shall be equal to the amount of Advances outstanding.

 

 

 

 

SECTION 2. 
Representations and Warranties. 
The Borrower hereby represents and warrants to each of the other parties
hereto, that:

 

(a)                                  this Amendment
constitutes its legal, valid and binding obligation, enforceable against it in
accordance with its terms; and

 

(b)                                 on the date hereof, before and after
giving effect to this Amendment, other than as amended or waived pursuant to
this Amendment, no Early Termination Event or Unmatured Termination Event has
occurred and is continuing.

 

SECTION 3.  Condition.

 

(a)                                  This Amendment shall become effective on
the first Business Day (the “Effective Date”) on which the
Administrative Agent or its counsel has received counterpart signature pages of
this Amendment, executed by each of the parties hereto.

 

SECTION 4. 
Reference to and Effect on the Transaction Documents.

 

(a)                                  Upon the
Effective Date, (i) each reference in the Credit Agreement to “this Credit
Agreement”, “this Agreement”, “hereunder”, “hereof”, “herein” or words of like
import shall mean and be a reference to the Credit Agreement as amended or
otherwise modified hereby, and (ii) each reference to the Credit Agreement
in any other Transaction Document or any other document, instrument or
agreement executed and/or delivered in connection therewith, shall mean and be
a reference to the Credit Agreement as amended or otherwise modified hereby.

 

(b)                                 Except as
specifically amended, terminated or otherwise modified above, the terms and conditions
of the Credit Agreement (including all other amendments thereto), of all other
Transaction Documents and any other documents, instruments and agreements
executed and/or delivered in connection therewith, shall remain in full force
and effect and are hereby ratified and confirmed.

 

(c)                                  The execution,
delivery and effectiveness of this Amendment shall not operate as a waiver of
any right, power or remedy of the Administrative Agent, any Managing Agent or
any Lender under the Credit Agreement or any other Transaction Document or any
other document, instrument or agreement executed in connection therewith, nor
constitute a waiver of any provision contained therein, in each case except as
specifically set forth herein.

 

SECTION 5.  Execution in 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 and delivered shall be deemed to be an original and
all of which taken together shall constitute but one and the same
instrument.  Delivery of an executed
counterpart of a signature page to this Amendment by telecopier or
electronic delivery shall be effective as delivery of a manually executed
counterpart of this Amendment.

 

SECTION 6.  Governing Law.  This Amendment shall be governed by and
construed in accordance with the laws of the State of New York, with reference
to Sections 5-1401 and 5-

 

 

2

 

1402 of the New York General Obligations Law
but otherwise without regard to conflict of law provisions.

 

SECTION 7.  Headings.  Section headings in this Amendment are
included herein for convenience of reference only and shall not constitute a
part of this Amendment for any other purpose.

 

SECTION 8.  Fees and Expenses.  The Borrower further hereby confirms its
agreement to pay on demand all reasonable costs and expenses of the
Administrative Agent, Managing Agents or Lenders in connection with the
preparation, execution and delivery of this Amendment and any of the other
instruments, documents and agreements to be executed and/or delivered in
connection herewith, including, without limitation, the reasonable fees and
out-of-pocket expenses of counsel to the Administrative Agent, Managing Agents
or Lenders with respect thereto.

 

[Remainder of Page Deliberately
Left Blank]

 

 

 

 

 

 

3

 

 

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

 

 

	
   

  	
  GLADSTONE BUSINESS LOAN,
  LLC, as Borrower

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

 

 

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  DEUTSCHE
  BANK AG, NEW YORK BRANCH,

  as a Committed Lender, Managing Agent and

  Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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  TAHOE FUNDING CORP., as CP
  Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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  Title:

  	
   

  

 

 

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  KEYBANK,
  NATIONAL ASSOCIATION,

  as a Committed Lender and Managing

  Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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  Title:

  	
   

  

 

 

 

 

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  RELATIONSHIP
  FUNDING COMPANY, LLC,

  as CP Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
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7Exhibit 10.1

 

Silicon Laboratories Inc.

2008 Bonus Plan

 

Overview

 

Silicon Laboratories Inc.
(“Silicon Labs”) is committed to sharing its success with the people who make
it possible — the Silicon Labs employees.  The Compensation Committee of
the Board of Directors approved this 2008 Bonus Plan (the “Plan”) to encourage
participation by Silicon Labs employees in achieving company goals and to
permit Silicon Labs employees to share in the rewards of our success.  The
term of this Plan is for the 2008 fiscal year.

 

Eligible
Employees

 

To be eligible to
participate in the Plan, a person must be a regular full-time or part-time
employee of Silicon Labs or one of its wholly-owned subsidiaries and not a
participant in any other bonus plan or cash incentive plan (including any sales
commission plan) unless participation under the Plan is permitted under the
terms of such other plan.

 

Bonus
Calculation

 

Our business strategy has
always been for Silicon Labs to be a growth company with strong
profitability.  Accordingly, bonuses under the Plan will be largely
dependent on Silicon Labs’ adjusted operating income as a percentage of
revenue, rounded to the nearest tenth of a percent with 0.05% rounded up (the “Adjusted
Operating Income %”).  Adjustments will be made from time to time at the
sole discretion of the Compensation Committee to include or exclude certain
items.  An example of a potential adjustment would be the exclusion of an
expense item such as stock compensation.  Bonuses may also be made dependent
on individual or company performance criteria as established by the
Compensation Committee (or its designee).  In addition to adjusted
operating income, such alternative criteria may include, without limitation,
revenue, revenue by product area(s), gross margin, gross margin by product area(s) or
management-based objectives set by the Compensation Committee (or its designee)
such as the introduction of new products.

 

Unless an eligible
employee receives written notice from the CEO of Silicon Labs that different
bonus criteria is applicable to such employee, such employee’s bonus will be
determined on a quarterly basis as follows:

 

 

	
   

  	
   

  	
  Adjusted Operating Income

  %

  	
   

  	
  Bonus as a 

  percent of

  Eligible

  Earnings for such

   Quarter

  	
   

  
	
  Maximum

  	
   

  	
  ≥30

  	
  %

  	
  15

  	
  %

  
	
  Target

  	
   

  	
  25

  	
  %

  	
  10

  	
  %

  
	
   

  	
   

  	
  20

  	
  %

  	
  7

  	
  %

  
	
   

  	
   

  	
  15

  	
  %

  	
  5

  	
  %

  
	
  Minimum

  	
   

  	
  10

  	
  %

  	
  3

  	
  %

  
	
  No bonus

  	
   

  	
  <10

  	
  %

  	
  0

  	
  %

  

 

As illustrated by the
chart above, the bonus increases by 0.04% for every 0.1% increase in Adjusted
Operating Income % over the 10% minimum until reaching an Adjusted Operating
Income % of 20%. Thereafter, the bonus increases by 0.06% for every 0.1%
increase in Adjusted Operating Income % until reaching the Target Adjusted
Operating Income % of 25%.  Thereafter, the bonus increases by 0.1% for 

 

 

 

every 0.1% increase in
Adjusted Operating Income % until reaching the maximum bonus payment of 15% at
the Maximum Adjusted Operating Income % of 30%.  The bonus shall be
rounded to the nearest tenth of a percent with 0.05% rounded up.

 

Eligible
Earnings

 

Bonuses are paid as a
percentage of Eligible Earnings earned by such employee during such
quarter.  Eligible Earnings include only an employee’s base salary or
hourly wages.  Eligible Earnings do not include, among other things,
disability pay, bonus payments from a previous bonus period or other payments
that are taxable but not considered regular earnings.  For non-exempt
employees, overtime pay would be considered Eligible Earnings.

 

Timing
of Payments

 

Bonus checks will
generally be issued within approximately one month after the end of each
quarterly period.

 

General
Provisions

 

· Bonuses are subject to all applicable
taxes and other required deductions.

 

· The Plan will not be available to
employees subject to the laws of any jurisdiction which prohibits any
provisions of this Plan or in which tax or other business considerations make
participation impracticable in the judgment of the Compensation Committee.

 

· The Plan does not constitute a guarantee
of employment nor does it restrict Silicon Labs’ rights to terminate employment
at any time or for any lawful reason.

 

· The Plan does not create vested rights
of any nature nor does it constitute a contract of employment or a contract of
any other kind.  The Plan does not create any customary concession or
privilege to which there is any entitlement from year-to-year, except to the extent
required under applicable law.  Nothing in the Plan entitles an employee
to any remuneration or benefits not set forth in the Plan nor does it restrict
Silicon Labs’ rights to increase or decrease the compensation of any employee,
except as otherwise required under applicable law.

 

· The Plan shall not become a part of any
employment condition, regular salary, remuneration package, contract or
agreement, but shall remain gratuitous in all respects.  Bonuses are not
to be taken into account for determining overtime pay, severance pay,
termination pay, or any other form of pay or compensation.

 

· The Plan is provided at Silicon Labs’
sole discretion and Silicon Labs may modify or eliminate it at any time,
individually or in the aggregate, prospectively or retroactively, without
notice or obligation. In addition, there is no obligation to extend or
establish a similar plan in subsequent years.

 

· The Plan shall not be pre-funded.
Silicon Labs shall not be required to establish any special or separate fund or
to make any other segregation of assets to assure the payment of bonuses.

 

· All references to a quarterly period
refer to fiscal quarters of Silicon Labs.

 

· This Plan constitutes the entire
arrangement regarding the Plan, supersedes any prior oral or written
description of the Plan and may not be modified except by a written document
that specifically references this Plan and is signed by the Silicon Labs CEO.

 

· Employees who resign or are terminated
prior to the actual payment of a bonus shall not receive a bonus.

 

 

 

· Eligible employees who begin employment
with Silicon Labs after the first day of a fiscal quarter for which a bonus is
paid shall be eligible to receive a bonus for such quarter.  The bonus will be based on actual Eligible
Earnings earned by such employee during such quarter.

 

· Employees who are separated from
employment with Silicon Labs due to divestiture, closure, or dissolution of a
business are not eligible to receive a bonus.

 

· Independent contractors, consultants,
individuals who have entered into an independent contractor or consultant
agreement, temporary employees and contract employees are not eligible to
participate in the Plan.

 

· The bonus for an otherwise eligible
employee who has died prior to the end of a quarter while actively employed
will be paid to the decedent’s estate.

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