Document:

Unassociated Document

    Exhibit
10.1

     

    
       

      
 

       

      FIRST
AMENDMENT TO

      FIRST
AMENDED AND RESTATED

      SENIOR
CREDIT AGREEMENT

       

       

      DATED
AS OF DECEMBER 23, 2008

       

       

      AMONG

       

       

      UNIT
CORPORATION,

      SUPERIOR
PIPELINE COMPANY, L.L.C.,

      UNIT
DRILLING COMPANY,

      UNIT
PETROLEUM COMPANY,

      and

      UNIT
TEXAS DRILLING, L.L.C.,

       

      AS
BORROWERS,

       

      THE
LENDERS,

       

      BANK
OF OKLAHOMA, NATIONAL ASSOCIATION,

      AS
ADMINISTRATIVE AGENT FOR THE LENDERS,

      and
as

      CO-ARRANGER

       

      BANK
OF AMERICA, N.A.,

      CO-ARRANGER

       

      BMO
CAPITAL MARKETS FINANCING, INC.,

      SYNDICATION
AGENT

       

      and

       

      COMPASS
BANK,

      DOCUMENTATION
AGENT

       

      

       

      

       

      

      
         

        
          
          

        

         

      

       

      FIRST
AMENDMENT TO FIRST AMENDED AND RESTATED

      SENIOR CREDIT
AGREEMENT

       

      THIS
FIRST AMENDMENT TO FIRST AMENDED AND RESTATED SENIOR CREDIT AGREEMENT, dated
effective as of December 23, 2008 (the "First Amendment"), is made and entered
into between and among UNIT CORPORATION, SUPERIOR PIPELINE COMPANY, L.L.C., UNIT
DRILLING COMPANY, UNIT PETROLEUM COMPANY and UNIT TEXAS DRILLING, L.L.C.
(collectively, the "Borrowers"), BANK OF OKLAHOMA, NATIONAL ASSOCIATION ("BOk"),
BANK OF AMERICA ("B of A"), BMO CAPITAL MARKETS FINANCING, INC. ("BMO"), COMPASS
BANK ("Compass"), FORTIS CAPITAL CORP. (Fortis"), COMERICA BANK ("Comerica") and
CALYON NEW YORK BRANCH ("Calyon") (individually a "Lender" and collectively, the
"Lenders") and BANK OF OKLAHOMA, NATIONAL ASSOCIATION, as agent for the Lenders
now or hereafter signatory parties thereto (the "Agent").

       

      RECITALS:

       

      A.           The
Borrowers, the Lenders (as well as Sterling Bank which is no longer a part of
the syndication of Lenders) and the Agent entered into that certain First
Amended and Restated Senior Credit Agreement dated as of May 24, 2007 (the
"Existing Credit Agreement"), under which, subject to all of the terms and
conditions of the Existing Credit Agreement, the Lenders severally established
Commitments set forth on the Lenders Schedule until the Facility Termination
Date.

       

      B.           The
Borrowers have requested the Lenders to increase the Aggregate Commitment amount
by $50,000,000 from $275,000,000 to $325,000,000 until the existing Facility
Termination Date under the replacement Lenders Schedule set forth on Schedule 2
annexed to this First Amendment.

       

      C.           The
Lenders are willing to so increase the existing Aggregate Commitment by
$50,000,000 from $275,000,000 to $325,000,000 until the existing Facility
Termination Date for the Existing Credit Agreement, subject to the revised
Pricing Schedule set forth on the replacement Schedule 1 annexed to this First
Amendment and the other terms, provisions, conditions and limitations set forth
in the Existing Credit Agreement and this First Amendment.

       

      THEREFORE,
subject to the terms, provisions, conditions and limitations hereinafter set
forth, the Lenders are willing to increase the Aggregate Commitment by
$50,000,000 in accordance with the replacement Lenders Schedule set forth on
replacement Schedule 2 annexed to this First Amendment, all subject to the
terms, provisions, conditions and limitations of the Existing Credit Agreement,
as amended by this First Amendment;

       

      NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained
herein, and other good and valuable consideration, receipt of which is
acknowledged by the parties hereto, the parties agree as follows:

       

      1.           Amendment to
Definition.  The definition of "Alternative Base Rate" in the
Existing Credit Agreement is deleted and replaced in its entirety by the
following definition thereof:

       

      
        2

      

       

      "Alternative Base Rate" means, for any
day, a rate of interest per annum equal tothe higher of (i) the Prime Rate for
such day, or (ii) the sum of the Federal FundsEffective Rate for such day plus
one-half of one percent (0.50%); provided, however, in no event shall the
Alternative Base Rate be less than the sum of (x) the Eurodollar Rate for such
day plus (y) one hundred basis points (1.00%)".

       

      2.           Pricing
Schedule.  The Pricing Schedule (Schedule 1) annexed to the
Existing Credit Agreement is deleted and replaced in its entirety by Schedule I
annexed hereto.

       

      3.           Lenders
Schedule.  The Commitment of each Lender is set forth on the
replacement Lenders Schedule (Schedule 2) annexed to this First Amendment in
replacement of the original Schedule 2 annexed to the Existing Credit
Agreement.  Notwithstanding the stated face principal amount of each
of the Notes, in no event shall the amount of a Lender's Commitment exceed the
amount designated on the Lenders Schedule for such Lender without the prior
written consent of the Lender.

       

      4.           Ratification.   The
remaining terms, provisions and conditions set forth in the Existing Credit
Agreement (including without limitation, the consents, waivers and other
provisions of Article XVII thereof) shall remain in full force and effect and
are incorporated and adopted herein by reference. The Borrowers restate, confirm
and ratify the warranties, covenants and representations (subject to any time
limitations contained therein) set forth in the Existing Credit Agreement and
further represent to the Lenders and the Agent that, as of the date of this
First Amendment, no uncured Default or Event of Default exists under the
Existing Credit Agreement, as amended by this First Amendment (collectively, the
"Credit Agreement").

       

      5.           Conditions
Precedent.  As express conditions precedent to the
effectiveness of this First Amendment, the Borrowers shall sign and deliver, or
cause to be executed and delivered to the Agent for the benefit of the Lenders,
each of the following:

       

      a.           this
First Amendment;

       

      b.           a
replacement Note in favor of and payable to the order of Compass in the original
stated face principal amount of $70,000,000;

       

      c.           corporate
and limited liability company incumbency and no default certificates from each
of the Borrowers, with resolutions attached, in form, scope and content
acceptable to the Agent; and

       

      d.           payment
to the Agent in immediately available funds (US Dollars) for the ratable (Pro
Rata Share) benefit of the Lenders of a Loan facility fee equal to seventy five
basis point (0.75%) on the $50,000,000 increase in the Aggregate Commitment
($375,000) and payment to the Agent for the sole benefit of Compass of a seventy
five basis point (0.75%) fee on the $13,750,000 prior Commitment of Sterling
Bank assumed by Compass concurrently herewith.

       

      6.           Fees and
Costs.  In addition to payment of the Loan facility fee
described in paragraph 5(d) above, the Borrowers agree to pay to the Agent on
demand all reasonable costs, fees and expenses (including without limitation)
reasonable attorneys fees and legal expenses 

       

      
        3

      

       

      incurred
or accrued by the Agent in connection with the preparation, negotiation,
signing,  closing, delivery, and administration of this First
Amendment.

       

      7.           Defined
Terms.  Any capitalized term used herein but not otherwise
defined shall have the meaning given to such term in the Existing Credit
Agreement.

       

      

       

      SEE NEXT PAGE FOR
SIGNATURES

       

      

       

      

      
         

        
          4

        

         

      

      IN
WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly
executed and delivered in Tulsa, Oklahoma, effective as of the day and year
first above written.

       

      UNIT CORPORATION, a Delaware
corporation,

      SUPERIOR PIPELINE COMPANY,
L.L.C.,

      an
Oklahoma limited liability company,

      UNIT PETROLEUM COMPANY, an
Oklahoma

      corporation,

      UNIT DRILLING COMPANY, an
Oklahoma

      corporation,

      UNIT TEXAS DRILLING, L.L.C.,
an Oklahoma

      limited
liability company

       

      
      

      
        	 	By_____________________________________
	 	 
	
                 
      

              	
                Larry
      D. Pinkston, President of each of 

              

      

      
        	 	UNIT
      CORPORATION, 
	
                 
      

              	
                UNIT
      PETROLEUM COMPANY, and

              

      

      
        	
                 
      

              	
                UNIT
      DRILLING COMPANY,

              

      

      
        	
                 
      

              	
                as
      Manager of UNIT TEXAS DRILLING, L.L.C., and 

              
	 	SUPERIOR
      PIPELINE COMPANY, L.L.C.

      

       

      
      

      
      

      
        	 	7130
      South Lewis Avenue, Suite 1000
	 	Tulsa,
      Oklahoma 74136
	
                 
      

              	
                Attention:  Larry
      Pinkston

              

      

      
      

      
        	 	Telephone: 
      (918) 493-7700
	
                 
      

              	
                Facsimile:  (918)
      493-7711

              

      

       

       

      
         

        
          5

        

         

      

      BANK OF OKLAHOMA, NATIONAL
ASSOCIATION, in its individual corporate capacity as a Lender, as LC
Issuer and as Administrative Agent for the Lenders

       

      
      

      
      

      
        	 	By__________________________________
	 	 
	 	Pam
      Schloeder
	
                 
      

              	
                Senior
      Vice President

              

      

       

       

      
        	
                 
      

              	
                101
      East Second Street

              

      

      
        	
                 
      

              	
                Bank
      of Oklahoma Tower

              

      

      
        	
                 
      

              	
                One
      Williams Center

              

      

      
        	
                 
      

              	
                Tulsa,
      Oklahoma  74192

              

      

      
      

      
        	 	Telephone: 
      (918) 588-6012
	
                 
      

              	
                Facsimile:  (918)
      588-6880

              

      

       

       

      
         

        
          6

        

         

      

      BANK OF AMERICA, N.A., a
Lender

       

      
      

      
        	 	By__________________________________
	 	 
	
                 
      

              	
                Christen
      A. Lacey

              

      

      
        	
                 
      

              	
                Vice
      President

              

      

       

       

      
        	
                 
      

              	
                100
      Federal Street

              

      

      
        	
                 
      

              	
                Boston,
      MA 02110

              

      

      
        	
                 
      

              	
                Telephone:  (617)
      434-6816

              

      

      
        	
                 
      

              	
                Facsimile:   (617)
      434-3652

              

      

       

      

       

      
         

        
          7

        

        
 

      

      BMO CAPITAL MARKETS FINANCING,
INC., formerly Harris Nesbitt Financing, Inc., a
Lender

       

       

       

      
      

      
        	 	By_________________________________
	 	 
	
                 
      

              	
                _______________________(name)

              

      

      
        	
                 
      

              	
                _______________________(title)

              

      

       

       

      
        	
                 
      

              	
                Bank
      of Montreal

              

      

      
        	
                 
      

              	
                Houston
      Agency

              

      

      
        	
                 
      

              	
                700
      Louisiana Street

              

      

      
        	
                 
      

              	
                4400
      Bank of America Center

              

      

      
        	
                 
      

              	
                Houston,
      Texas 77002

              

      

      
        	
                 
      

              	
                Telephone:  (713)
      546-9761

              

      

      
        	
                 
      

              	
                Facsimile:  (713)
      223-4007

              

      

       

       

      
         

        
          8

        

         

      

      COMPASS BANK, a
Lender

       

      
      

      
        	 	By___________________________________
	 	 
	
                 
      

              	
                Kathleen
      J. Bowen

              

      

      
        	
                 
      

              	
                Senior
      Vice President

              

      

       

       

      
        	
                 
      

              	
                24
      Greenway Plaza

              

      

      
        	
                 
      

              	
                Suite
      1400A

              

      

      
        	
                 
      

              	
                Houston,
      Texas 77046

              

      

      
        	
                 
      

              	
                Telephone:  (713)
      968-8273

              

      

      
        	
                 
      

              	
                Facsimile:  (713)
      968-8292

              

      

       

      

      
         

        
          9

        

         

      

      COMERICA BANK, a
Lender

       

      
      

      
        	 	By___________________________________
	 	 
	
                 
      

              	
                _________________________(name)

              

      

      
        	
                 
      

              	
                _________________________(title)

              

      

       

       

      
        	
                 
      

              	
                1717
      Main Street, 4th
      Floor

              

      

      
        	
                 
      

              	
                Dallas,
      Texas 75201

              

      

      
        	
                 
      

              	
                Telephone:  (214)
      462-4339

              

      

      
        	
                 
      

              	
                Facsimile:   (214)
      462-4240

              

      

       

      

       

      
         

        
          10

        

         

      

      FORTIS CAPITAL CORP., a
Lender

       

      
      

      
        	 	By___________________________________
	 	 
	
                 
      

              	
                Michele
      Jones

              

      

      
        	
                 
      

              	
                Senior
      Vice President

              

      

       

      
      

      
        	 	By____________________________________
	 	 
	
                 
      

              	
                Darrell
      Holley

              

      

      
        	
                 
      

              	
                Managing
      Director

              

      

       

       

      
        	
                 
      

              	
                15455
      North Dallas Parkway

              

      

      
        	
                 
      

              	
                Suite
      1400

              

      

      
        	
                 
      

              	
                Addison,
      Texas 75001

              

      

      
        	
                 
      

              	
                Telephone:
      (214) 953-9308

              

      

      
        	
                 
      

              	
                Facsimile:  (214)
      754-5982

              

      

       

       

       

      
         

        
          11

        

         

      

       

      CALYON NEW YORK BRANCH, a
Lender

       

      
      

      
        	 	By___________________________________
	 	 
	
                 
      

              	
                Mark
      Roche

              

      

      
        	
                 
      

              	
                Managing
      Director

              

      

       

       

      
      

      
        	 	By____________________________________
	 	 
	
                 
      

              	
                Michael
      Willis

              

      

      
        	
                 
      

              	
                Managing
      Director

              

      

       

       

      
        	
                 
      

              	
                1301
      Travis Street

              

      

      
        	
                 
      

              	
                Suite
      2100

              

      

      
        	
                 
      

              	
                Houston,
      Texas 77002

              

      

      
        	
                 
      

              	
                Telephone:  (713)
      890-8616

              

      

      
        	
                 
      

              	
                Facsimile:  (713)
      890-8668

              

      

       

       

       

      
         

        
          12

        

         

      

      SCHEDULE
1

       

      PRICING
SCHEDULE

       

      

      
        	
                Applicable

                Margin

                 

              	
                Level
      I

                Status

              	
                Level
      II

                Status

              	
                Level
      III

                Status

              	
                Level
      IV

                Status

              
	
                Eurodollar
      Rate

              	
                1.75%

              	
                2.00%

              	
                2.25%

              	
                2.50%

              
	
                Floating
      Rate

              	
                0.50%

              	
                0.75%

              	
                1.00%

              	
                1.25%

              

      

      

      

      
        	
                Applicable

                Margin

                 

              	
                Level
      I

                Status

              	
                Level
      II

                Status

              	
                Level
      III

                Status

              	
                Level
      IV

                Status

              
	
                Commitment
      Fee Rate

              	
                0.375%

              	
                0.375%

              	
                0.375%

              	
                0.50%

              

      

      

      Notwithstanding
the foregoing Floating Rate margins designated above, in no event shall the
contract per annum Floating Rate be less than the Eurodollar Rate plus
1.00%.

       

      For the
purposes of this Schedule, the following terms have the following meanings,
subject to the final paragraph of this Schedule:

       

      "Level I
Status" exists at any date if the Borrowing Base Usage Percentage on such date
is less than 50%.

       

      "Level II
Status" exists at any date if the Borrowing Base Usage Percentage on such date
is greater than or equal to 50% and less than 75%.

       

      "Level
III Status" exists at any date if the Borrowing Base Usage Percentage on such
date is greater than or equal to 75% and less than 90%.

       

      "Level IV
Status" exists at any date if the Borrowing Base Usage Percentage on such date
is greater than or equal to 90%.

       

      "Status"
means either Level I Status, Level II Status, Level III Status or Level IV
Status.

       

      The
Applicable Margin and Commitment Fee Rate will be determined on a daily basis in
accordance with the foregoing table based on the Borrowing Base Usage Percentage
on such day.

       

      Letter of
Credit Fees:  Issuance Fees are payable quarterly in advance,
determined as of the LC issue date based on the applicable Margin (Eurodollar
Rate column) for Eurodollar Loans on the stated amount of the LC and an LC
fronting fee of 0.125% per annum will be paid to the LC Issuer concurrent with
execution.

       

      
         

        
          13

        

         

      

      SCHEDULE
2

       

      LENDERS
SCHEDULE

       

      

      
        	
                Lender

              	
                Aggregate

                Commitment
      Amount

              	
                Pro
      Rata Share

              
	
                Bank
      of Oklahoma, N. A.

              	
                $60,937,500.00

              	
                18.75%

              
	
                Bank
      of America, N. A.

              	
                 60,937,500.00

              	
                18.75%

              
	
                BMO

              	
                 60,937,500.00

              	
                18.75%

              
	
                Compass
      Bank

              	
                 56,875,000.00

              	
                17.50%

              
	
                Comerica
      Bank

              	
                 28,437,500.00

              	
                08.75%

              
	
                Fortis
      Capital Corp.

              	
                 28,437,500.00

              	
                08.75%

              
	
                Calyon
      New York Branch

              	
                 28,437,500.00

              	
                08.75%

              
	
                TOTAL

              	
                $325,000,000.00

              	
                100.00%

              

      

     

     

    
       

      
        14

      

       

    

    

      PROMISSORY
NOTE

       

      (COMPASS
BANK)

      
      

       

      
        	$70,000,000.00    	December 23,
      2008

      

      
        	 	 Tulsa,
      Oklahoma

      

       

      FOR VALUE
RECEIVED, the undersigned, UNIT CORPORATION, a Delaware corporation, SUPERIOR
PIPELINE COMPANY, L.L.C., an Oklahoma limited liability company, UNIT DRILLING
COMPANY, an Oklahoma corporation, UNIT PETROLEUM COMPANY, an Oklahoma
corporation, and UNIT TEXAS DRILLING, L.L.C., an Oklahoma limited liability
company (individually and collectively the "Borrowers"), jointly and severally
promise to pay to the order of COMPASS BANK ("Compass"), with interest, the
principal sum of SEVENTY MILLION and NO/100ths DOLLARS ($70,000,000.00) or, if
less, the aggregate principal amount of all advances outstanding from time to
time hereunder, made by Compass to Borrowers pursuant to the Credit Agreement
(hereinafter defined) and unless otherwise provided in the Credit Agreement, the
principal balance of this Note outstanding on the Facility Termination Date,
with interest payments due on each applicable Payment Date.  This Note
is issued pursuant to and subject to the terms of a certain First Amended and
Restated Senior Credit Agreement dated as of May 24, 2007, as amended by the
First Amendment thereto dated effective as of even date herewith among
Borrowers, the Lenders signatory parties thereto (collectively the "Lenders"),
with Bank of Oklahoma, National Association, as the Administrative Agent (in
such capacity, the "Administrative Agent") (such Credit Agreement hereafter
amended, modified, supplemented or restated from time to time collectively
referred to as the "Credit Agreement").  Capitalized terms used and
not otherwise defined herein shall have the meanings assigned to them in the
Credit Agreement.

       

      Except as
hereinafter provided in connection with a Default, interest shall accrue on the
outstanding principal balance hereof and on any past due interest to the
Facility Termination Date at the rate or rates per annum determined pursuant to
the Pricing Schedule annexed to the Credit  Agreement, as provided in
and calculated pursuant to the Credit Agreement.

       

      The rate
of interest payable upon the indebtedness evidenced by this Note shall not at
any time exceed the maximum rate of interest permitted under the laws of the
State of Oklahoma or federal laws to the extent they apply to loans of the type
and character evidenced by this Note.

       

      All
payments under this Note shall be made in legal tender of the United States of
America or in other immediately available funds at the offices of the
Administrative Agent at Bank of Oklahoma Tower, One Williams Center, Seven East
Second Street, Tulsa, Oklahoma 74172, and no credit shall be given for any
payment received by check, draft or other instrument or item until such time as
the Administrative Agent or the holder hereof shall have received credit
therefor from the Administrative Agent's or the holder's collecting agent or, in
the event no collecting agent is used, from the bank or other financial
institution upon which said check, draft or other instrument or item is
drawn.  If any payment is due upon a Saturday or Sunday or upon any
other day on which state or national banks in the State of Oklahoma are closed
for business by virtue of a legal holiday for such banks, such payment shall be
due and payable on the next succeeding Business Day, and interest shall accrue
to such day.

       

      
        1

      

       

      The
Borrowers may borrow and reborrow hereunder at any time and from time to time as
provided in the Credit Agreement and may prepay this Note in whole or in part,
subject to the prepayment limitations contained in the Credit Agreement;
provided, however, that any partial prepayment shall be applied first to accrued
interest, then to the unpaid principal balance hereof.

       

      From time
to time the Borrowers and the Lenders may agree to extend the maturity date of
this Note or to renew this Note, in whole or in part, or a new note of different
form may be substituted for this Note and/or the rate of interest may be
changed, or changes may be made in consideration of loan extensions, and the
holder, from time to time, may waive or surrender, either in whole or in part,
any rights, guarantees, security interests, or liens given for the benefit of
the holder in connection with the payment and the securing the payment of this
Note; but no such occurrences shall in any manner affect, limit, modify or
otherwise impair any rights, guarantees or security of the holder not
specifically waived, released or surrendered in writing, nor shall the Borrowers
or any guarantor, endorser or any other person who is or might be liable hereon,
either primarily or contingently, be released from such liability by reason of
the occurrence of any such event.  The holder hereof, from time to
time, shall have the unlimited right to release any person who might be liable
hereon; and such release shall not affect or discharge the liability of any
other person who is or might be liable hereon.

       

      This Note
is subject to and governed by the terms, provisions, conditions and limitations
of the Credit Agreement concerning, among other matters, acceleration following
a Default, imposition of default rates of interest during the continuance of a
Default, methods of payment, minimum amounts of each Advance, selection of the
type of Advance and applicable Interest Period for new Advances, Borrowing Base
calculations, Maximum Credit Amount, Aggregate Commitment amounts, a negative
pledge of certain assets of the Borrowers, rights of set off or offset in
connection therewith and all other matters terms, provisions and agreements
therein prescribed or governed.

       

      The
Borrowers and all endorsers, guarantors and sureties hereby severally waive
protest, presentment, demand, and notice of protest and nonpayment in case this
Note or any payment due hereunder is not paid when due; and they agree to any
renewal of this Note or to any extension, acceleration or postponement of the
time of payment, or any other indulgence, to any substituting, exchange or
release of any collateral and to the release of any party or person primarily or
contingently liable hereon without prejudice to the holder and without notice to
the Borrowers or any endorser, guarantor or surety.  In the event of
any controversy, claim or dispute among the parties affecting or relating to the
subject matter or performance of this Note, the prevailing party shall be
entitled to recover from the non-prevailing party all of its reasonable costs,
expenses, including reasonable attorneys' and accountants' fees.  In
the event the Administrative Agent or Compass is the prevailing party, the
Borrowers, and any guarantor, endorser, surety or any other person who is or may
become liable hereon, will, on demand, pay all such costs and
expenses.

       

      This Note
is a replacement and modification of that certain promissory note dated as of
May 24, 2007 issued under the Existing Credit Agreement and payable by the
Borrowers to the order of Compass in the original principal amount of
$50,000,000.00.

       

      
        2

      

       

      This Note
is issued by the Borrowers in accordance with the provisions of Section 2.14(iv)
of the Credit Agreement and shall be governed by and construed in accordance
with the laws of the State of Oklahoma.  Borrowers agree that all
suits or proceedings arising from or related to this Note or the Credit
Agreement may be litigated in courts, state or federal, sitting in Tulsa County,
State of Oklahoma.  In furtherance of this provision, Borrowers hereby
waive any objection to such venue.

       

      Notwithstanding
the single execution of this Note by the undersigned President of each of the
corporate Borrowers and the Manager of the limited liability company Borrowers,
as applicable, each of the Borrowers is jointly and severally bound by the terms
of this Note.

       

      UNIT CORPORATION, a Delaware
corporation,

      SUPERIOR PIPELINE COMPANY,
L.L.C.,

      an
Oklahoma limited liability company,

      UNIT PETROLEUM COMPANY, an
Oklahoma

      corporation,

      UNIT DRILLING COMPANY, an
Oklahoma

      corporation,

      UNIT TEXAS DRILLING, L.L.C.,
an Oklahoma

      limited
liability company

       

      
      

      
        	 	By_____________________________________
	 	 
	 	Larry
      D. Pinkston, President of each of
	 	UNIT
      CORPORATION 
	 	UNIT
      PETROLEUM COMPANY, and 
	 	UNIT
      DRILLING COMPANY, as Manager of 
	 	UNIT
      TEXAS DRILLING, L.L.C., and 
	 	SUPERIOR
      PIPELINE COMPANY, L.L.C. 

      

      
      

      
      

       

       

       

       

      3ex101.htm

    
      

    

    Exhibit
10.1

     

    BONUS
AGREEMENT

    

    This
Bonus Agreement (this “Agreement”) is entered into
effective as of December 17, 2008 by and between Standard Pacific Corp., a
Delaware corporation (the “
Company ”), and Jeffrey V. Peterson (“ Executive ”).

    

    WHEREAS,
Executive stepped forward to serve the Company as its Chairman, Chief Executive
Officer, and President during a critical period in its history;

     

    WHEREAS,
the Company desires to compensate Executive for the exemplary service he
provided to the Company during this difficult period;

     

    WHEREAS,
Executive will continue to provide his significant expertise to the Company as a
member of the Company’s Board of Directors; and

     

    WHEREAS,
the Company now desires to appoint a new President and Chief Executive Officer
of the Company.

     

    NOW,
THEREFORE, in consideration of the foregoing premises and the covenants
contained in this Agreement, the Company and Executive agree as
follows:

    

    1. Resignation. Executive hereby confirms
his resignation as an employee, Chief Executive Officer, President, and Chairman
of the Board of Directors of the Company, effective as of December 17, 2008 (the
“Effective Date”).
Effective as of the Effective Date, Executive also hereby confirms his
resignation and retirement from all positions held as an employee, officer, or
director of any subsidiary or affiliate of the Company.  Executive
will continue to serve his term as a director of the Company.

    

    2. Consideration. In return
for the release described below and Executive’s other promises contained herein,
the Company agrees as follows:

    

    (a) Partial
Continuation of Stock Option
Vesting. Options to acquire an aggregate of 3,800,000 shares of Company
common stock were issued to Executive on August 22, 2008 (the “Options”) pursuant to the
terms of the Company’s 2008 Equity Incentive Plan.  As of the
Effective Date, the first quarter of the Options (950,000 options, the “First Tranche”) shall continue
to vest in accordance with their current vesting schedule for so long as
Executive remains a member of the Board of Directors of the Company; provided, however, that if
the Board of Directors fails to nominate Executive to stand for election as a
director at the Company’s May 13, 2009 Annual Meeting of Stockholders, the First
Tranche shall vest on May 13, 2009.  The remaining three tranches of
Options (2,850,000 options) shall be automatically cancelled as of the Effective
Date.

    

    (b) Extension of
Option Exercise Period for First
Tranche. 
The time period during which Executive shall be permitted to exercise the First
Tranche following vesting as described above shall be until the earlier of
(i) the date that is 90 days following the date that Executive ceases to be a
member of the Board of Directors and (ii) August 22, 2015. Notwithstanding the
foregoing, if Executive ceases to be a member of the Board of Directors because
the Board of Directors fails to nominate Executive to stand for election as a
director of the Company, then the time period for Executive to exercise the
First Tranche shall be extended to August 22, 2013. Executive understands
and acknowledges that options originally issued as incentive stock options may
lose the ability to qualify as incentive stock options as a result of this
extension of the option exercise period.

    

    (c)
Bonus.
Executive shall receive a single lump sum bonus payment of $3,000,000. This
payment shall be made to Executive prior to December 31, 2008. Except as
provided in this Agreement, Executive acknowledges that he is not entitled to,
and shall not receive, any salary (other than his base salary through December
17, 2008), bonus, equity compensation or other compensation for
2008.

     

    (d) Director
Compensation. Following the Effective
Date, Executive shall be entitled to all of the compensation and benefits
offered to Company non-management directors (including the ability to
participate in the Company health plans at Executive’s expense).

    

    3.
Benefits; Company Property; Vacation; Expenses.

    

    (a) Termination of
Benefits. All perquisites and employee benefits and Executive’s
participation in all employee benefit programs of the Company which are not
described herein (other than Executive’s rights under  the Company’s
401(K) plan) will terminate effective on the Effective Date.

    

    (b) Return of
Company Property. On the Effective Date, Executive’s privileges under all
Company credit cards will cease and Executive will be obligated to return to the
Company all property of the Company, except that Executive shall be entitled to
retain his cellular telephone.

    

    (c) Payout of
Accrued Unused Vacation Time. On the Effective Date, Executive shall be
entitled to receive payment of Executive’s accrued unused vacation. As of
December 17, 2008, this amount totaled $25,933.18.

    

    (d) Reimbursement of
Business Expenses. Executive shall be entitled to receive reimbursement
for all properly documented business expenses incurred prior to the Effective
Date.  Executive agrees to submit proper documentation of all such
expenses no later than March 31, 2009. The Company shall provide reimbursement
within 30 days of receipt of Executive’s properly documented business
expenses.

     

    (e) Withholding and
Taxes. All amounts required to be paid by the Company hereunder shall be
subject to any and all applicable withholdings, including any withholdings for
any related federal, state or local taxes. Executive shall be responsible for
any and all income taxes or other taxes incurred by Executive as a result of his
receipt of any compensation received from the Company pursuant to the terms of
this Agreement.

    

    4.
Nondisclosure; Non-Disparagement; Non-Solicitation.

    

    (a)
Nondisclosure. Executive acknowledges that in the course of his
employment with the Company, certain factual and strategic information
specifically related to the Company and its affiliates has been disclosed to him
in confidence (“Company
Information”). Executive agrees to keep such Company Information
confidential, not to make use of such information on his own behalf or for any
other purpose.

    

    (b)
Non-Disparagement. Executive shall not
disparage the Company, its officers, directors, employees, agents, subsidiaries,
or affiliates, or publish, republish, comment upon, or otherwise disseminate:
(A) any claims made by him against the Company; (B) any other comments
suggesting or otherwise accusing the Company or its agents or employees of any
act of discrimination, misconduct, other negative behavior or any breach of any
agreements. Nothing in this provision shall be construed to prevent Executive
from giving truthful testimony pursuant to a valid subpoena or other judicial
process.

    

    (c)
Non-Solicitation. Without the prior written consent of the Company, for a
period of two (2) years following the Effective Date, Executive shall not,
directly or indirectly, entice or solicit or seek to induce or influence any
person who is an employee or consultant of the Company or any of its affiliates,
to leave their employment or engagement with the Company or any of its
affiliates.

    

    (d) Equitable
Relief. Each party hereto agrees that his violation, or threatened
violation, of Sections
4(a), 4(b) and 4(c) would cause irreparable damage to the other party
hereto and its affiliates. Each party hereto shall be entitled to seek an
injunction prohibiting the other party hereto from any such violation or
threatened violation.

    

    5.
Release.

    

    (a)
Except as prohibited by law, Executive, on behalf of himself and his successors
and assigns does hereby forever release, discharge and acquit the Company and
its subsidiaries, divisions, affiliates, and their respective predecessors in
interest, members, partners, principals, shareholders, directors, officers,
agents, employees, and representatives, and the successors and assigns of each
of them (each a “Company
Released Party”), from any and all charges, complaints, claims, demands,
obligations, promises, agreements, damages, actions, causes of action, suits,
rights, costs, losses, debts, expenses (including attorneys’ fees and costs),
liabilities, and indebtedness, of every type, kind, nature, description or
character, whether known or unknown, suspected or unsuspected, liquidated or
unliquidated, arising from, under or related to, Executive’s employment,
retention or other relationships with the Company or its affiliates, the
separation of that employment, retention or those relationships, and any event,
act or omission arising on or before the date of this Agreement including, but
not limited to, (1) any claim for salary, bonus, severance pay, or other
compensation, or (2) any claim for non-vested benefits under any employee
benefit plan, whether or not heretofore brought before any state or federal
court or before any state or federal agency or other governmental entity (the
“Released Matters”). The
Released Matters shall not include any claims for any of the following:
(i) indemnification and defense as an officer, employee or agent under
applicable law, charter document or the indemnification agreement between the
Company and Executive (the “Indemnification Agreement”), (ii) the parties’
rights under this Agreement, (iii) Executive’s rights under any stock
option agreement and the Company’s 401(k) plan, (iv) Executive’s right to
workers’ compensation or unemployment benefits, (v) Executive’s rights with
respect to coverage under the Company’s directors and officers insurance policy.
For the avoidance of doubt, the releases contained herein shall not be construed
to limit Executive’s rights to the advancement of expenses provided under
applicable law, the Company’s charter documents or the Indemnification
Agreement.

    

    (b)
Executive acknowledges and agrees that the releases made herein constitute final
and complete releases of the Company Released Parties with respect to all
Released Matters, and that by signing this Agreement, Executive is forever
giving up the right to sue or attempt to recover money, damages or any other
relief from the Company Released Parties for all claims he has or may have with
respect to the Released Matters (even if any such claim is unforeseen as of the
date hereof).

    

    (c)
Executive represents and warrants that he understands California Civil Code
Section 1542, which provides 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.”

    

    Executive,
being aware of Section 1542, hereby expressly waives any and all rights he
may have thereunder as well as under any other statute or common law principles
of similar effect under the laws of any state or the United States. This
Agreement shall act as a release of all claims that may arise from the Released
Matters, whether such claims are currently known or unknown, foreseen or
unforeseen including, without limitation, any claims for damages resulting from
the acts or omissions which occurred on or before the date of this
Agreement.

     

    Thus,
notwithstanding the provisions of Section 1542, and for the purpose of
implementing a full and complete release and discharge of the Company Released
Parties, Executive expressly acknowledges that this Agreement is intended to
include in its effect, without limitation, all Released Matters which he
does not know or suspect to exist in his favor at the time of execution hereof,
and that this Agreement contemplates the extinguishment of all such Released
Matters.

    

    6. No Claims. Executive
represents and warrants that he has not instituted any complaints, charges,
lawsuits or other proceedings against any Company Released Parties with any
governmental agency, court, arbitration agency or tribunal. Executive further
agrees that he will not, directly or indirectly, (i) file, bring, cause to
be brought any complaint, charge, lawsuit or other proceeding or action against
any Company Released Parties at any time hereafter for any Released Matters, or
(ii) defend in whole or in part any action, proceeding or suit brought to
enforce any rights or obligations set forth in this Agreement, on the grounds
that any or all of the terms or provisions of this Agreement are illegal,
invalid, not binding, unenforceable or against public policy, except that
this Section 6  shall
not apply to the right to file, join or participate in, or provide any
assistance in connection with a charge or complaint with the Equal Employment
Opportunity Commission.

    

    7. Advice of Counsel.
Executive represents and agrees that he fully understands his right to discuss,
and that the Company has advised him to discuss, all aspects of this Agreement
with his private attorney, that he has carefully read and fully understands all
the provisions of the Agreement, that he understands its final and binding
effect, that he is competent to sign this Agreement, and that he is voluntarily
entering into this Agreement.

    

    8. Acknowledgment. Executive
represents and agrees that in executing this Agreement he is relying solely upon
his own judgment, belief and knowledge, and the advice and recommendations of
any independently selected counsel, concerning the nature, extent and duration
of his rights and claims. Executive acknowledges that no other individual has
made any promise, representation or warranty, express or implied, not contained
in this Agreement, to induce Executive to execute this Agreement. Executive
further acknowledges that he is not executing this Agreement in reliance on any
promise, representation, or warranty not contained in this
Agreement.

     

    9.
Miscellaneous

    

    (a) Binding on
Successors and Assigns. This Agreement shall inure
to the benefit of and be binding upon the successors and assigns of the Company
and shall inure to the benefit of and be binding upon Executive’s heirs,
executors, administrators, successors and assigns.

    

    (b)
Arbitration.
Executive and the Company acknowledge and agree that any dispute regarding the
application, interpretation or breach of this Agreement will be subject to final
and binding arbitration before a single arbitrator who is a retired judge with
JAMS/Endispute and in accordance with JAMS/Endispute’s rules for the resolution
of employment disputes. Attorneys’ fees, costs and damages (where appropriate)
shall be awarded to the prevailing party in any dispute, and any resolution,
opinion or order of the arbitrator may be entered as a judgment of a court of
competent jurisdiction. This Agreement shall be admissible in any proceeding to
enforce its terms.

     

     (c)
Severability.
Should any provision of this Agreement be found, held, declared, determined, or
deemed by any arbitrator or court of competent jurisdiction to be void, illegal,
invalid or unenforceable under any applicable statute or controlling law, the
legality, validity, and enforceability of the remaining provisions will not be
affected and the illegal, invalid, or unenforceable provision will be deemed not
to be a part of the Agreement.

    

    (d) Governing
Law. This
Agreement shall be construed and interpreted in accordance with California
law.

    

    (e) Entire
Agreement. This
Agreement contains the entire agreement and understanding between Executive and
the Company regarding the matters set forth herein and replaces all prior
agreements, arrangements and understandings, written or oral, including, without
limitation, that certain Severance Agreement between Executive and the Company
dated September 2, 2008 and those certain letter agreements between
Executive and the Company dated May 15, 2008 and March 20,
2008.  Neither Executive nor the Company shall be bound or liable for
any representation, promise or inducement not contained in this Agreement. This
Agreement cannot be amended, modified, supplemented, or altered, except by
written amendment or supplement signed by Executive and the
Company.

    

    (f)
Counterparts.
This Agreement may be executed in counterparts, including facsimile
counterparts, each of which shall be deemed to be an original, but all of which
shall constitute one and the same agreement. Delivery of an executed counterpart
of a signature page to this Agreement by facsimile transmission shall be
effective delivery of a manually executed counterpart to this
Agreement.

     

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first written above.

     

     

    
      
        	
                THE
      COMPANY:

                STANDARD
      PACIFIC CORP.,

                a
      Delaware corporation

              
	 
      	 
      
	
                By:

              	
                /s/
      Larry D. McNabb

              
	 
      	
                Larry
      D. McNabb

                Director

              

      

       

      
        	
                EXECUTIVE

              
	 
      	 
      
	
                By:

              	
                /s/
      Jeffrey V. Peterson

              
	 
      	
                Jeffrey
      V. Peterson

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