Document:

Exhibit 10.1

 

DEPOMED, INC. BONUS PLAN

 

Depomed’s
Bonus Plan is designed to provide employees with a performance-based plan that
rewards the achievement of individual goals and corporate performance. Such
Bonus Plan is administered at the absolute discretion of the Company’s
Management, including its Board of Directors.

 

Background

Depomed
has a history of rewarding its high performing employees for their efforts and
accomplishments. As the Company continues to mature and grow, we have
formalized the structure of employees’ activities to be consistent with Depomed’s
Corporate Goals and have defined a specific process for calculating bonuses
consistent with employees’ individual contributions. Management and the Board
of Directors maintain absolute discretion in administering this plan so that it
remains flexible in meeting the changing needs of the organization.

 

All
levels of Depomed employees have been directed to establish individual goals
and objectives consistent with Depomed’s Corporate Goals. By following their
defined goals and objectives, the employees’ activities will focus on and
directly support the Corporate Goals. These goals are to be reviewed together
by employees and their supervisors on an ongoing basis throughout the calendar
year. The review period for accomplishing the current calendar year’s goals and
objectives ends on December 31.

 

Eligibility

All
existing, regular employees who work at least 30 hours per week will be
eligible to participate in the Plan. New employees who join the company by August 1
will be eligible to participate in the current year’s plan on a pro-rated
basis.

 

Bonus Target

A
“Bonus Target” has been identified for different levels of personnel and is
based on a percentage of base pay. The Bonus Target is based on two elements,
including the employee’s individual contribution and the achievement of the
corporate goals. If, in management’s opinion, an individual achieves all their
goals, they could be eligible to receive the entire bonus target percentage at
the end of the year, subject to overall corporate performance. This is
explained in more detail below.

 

Corporate Multiplier

The
portion of the Bonus Target attributed to the Corporate Goals will be subject
to a “Corporate Multiplier,” which will reflect the Company’s overall success
and fiscal concerns. In a year, where the corporate goals are met and the
Company’s finances are on target, the Corporate Multiplier could be 100%. Conversely,
in a year where only a portion of the corporate goals are met and finances are
not on target, a corporate multiplier of 75%, 50% or zero, for example, might
be applied to the Bonus Target. At the end of the subject year, the Company’s
performance will be evaluated by the CEO, COO, CFO and the Compensation
Committee of the Board of Directors and the Corporate Multiplier will be set.

 

 

The
Bonus Targets have been set as follows:

 

	
   

  	
   

  	
   

  	
   

  	
  Weighting Related to

  	
   

  
	
   

  	
   

  	
  Bonus Target

  	
   

  	
  Corporate Goals

  	
   

  	
  Personal Goals

  	
   

  
	
  CEO

  	
   

  	
  50

  	
  %

  	
  80

  	
  %

  	
  20

  	
  %

  
	
  COO

  	
   

  	
  40

  	
  %

  	
  70

  	
  %

  	
  30

  	
  %

  
	
  Vice Presidents

  	
   

  	
  35

  	
  %

  	
  60

  	
  %

  	
  40

  	
  %

  
	
  Sr./Directors/Assoc.
  Directors

  	
   

  	
  25

  	
  %

  	
  60

  	
  %

  	
  40

  	
  %

  
	
  Sr./Managers

  	
   

  	
  15

  	
  %

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  Supervisors

  	
   

  	
  10

  	
  %

  	
  40

  	
  %

  	
  60

  	
  %

  
	
  Independent
  Contributors

  	
   

  	
  5

  	
  %

  	
  20

  	
  %

  	
  80

  	
  %

  

 

Weighting of Goals

For
each individual goal identified, a weight will be assigned reflecting the
significance of the goal and the level of effort required to achieve it; the
combined weight of the different goals should total 100%. When establishing the
weight for a given goal, attention should be paid to the significance of the
goal and the effort required. For example, an ongoing goal that consumes 50% of
someone’s time for the year would receive a weight of 50%; a fixed-term goal or
standard that consumes 100% of an employee’s effort for three months would
receive a weight of 25% (reflecting 25% of the year). Other goals or standards
will be weighted and judged based on their significance or potential impact to
the company. For instance, a new multi-million dollar deal with a new partner,
might be weighted at 70%, regardless of the time involved to finalize the terms.
Or, a goal to streamline a new procedure in the lab and resulting in
significant time savings, might result in a weight of 75% (given that the
impact on the company is significant and long-lasting).

 

Bonus Calculation

Throughout
the year and at year-end, employees’ goals and achievements will be assessed by
management. An employee who achieved an individual goal will receive a “1” for
full credit of the goal; a goal that is well under way, but has not been fully
achieved could receive a “.5” for partial credit;
a goal not achieved will receive a “0” for no credit. An employee who not only
achieved his or her goal, but well exceeded expectations, resulting in tangible
evidence of significant improvement of the well being of the company, could receive a rating in excess of “1”. Management
maintains absolute discretion in determining the scope and impact of
accomplishments as well as taking into consideration key management and
employee behavioral attributes and job skills that are monitored on a quarterly
basis.

 

Performance Assessment and Payment of Bonuses

In
early January, following the plan year, individual and corporate goals will be
assessed and performance reviews will be prepared and delivered to employees. Bonuses
will be calculated and payment of bonuses will be made to employees no later
than March 15.

 

Employees
must be employed by Depomed on the day payment is made to be eligible for a
bonus payment. No employee, who has been under formal disciplinary action, will
be eligible to receive a bonus for that calendar year.

 

Depomed
retains the right to alter or eliminate the Plan and its terms and conditions
at any time and for any reason, before, during or after the plan year. All
decisions made by Management, including the Board of Directors, will be in
their absolute discretion, final and not subject to dispute.

 

No
participant shall have any vested right to receive any payment until actual
delivery of such compensation. This plan does not constitute a contract or
other agreement concerning employment with Depomed. Employment at Depomed is “at
will” and may be terminated at any time by Depomed or by the employee,
either with or without cause.

 

2Exhibit 10.24

 

SEVENTH
AMENDMENT TO

CREDIT
FACILITIES AGREEMENT

 

This SEVENTH AMENDMENT TO CREDIT FACILITIES
AGREEMENT (this “Agreement”) is entered into and effective as of November 15,
2005, by and among GTSI Corp., a Delaware corporation (“GTSI”), Technology
Logistics, Inc., a Delaware corporation (“TLI”; separately and
collectively with GTSI, “Borrower”), GE Commercial Distribution Finance
Corporation (“GECDF”), as Administrative Agent, and GECDF and the other
Lenders.

 

Recitals:

 

A.                                    GTSI, Administrative Agent and Lenders are
party to that certain Credit Facilities Agreement dated as of October 20,
2003, as amended by that certain First Amendment to Credit Facilities Agreement
dated as of March 12, 2004, as further amended by that certain Second
Amendment to Credit Facilities Agreement dated as of July 29, 2004, as
further amended by that certain Third Amendment to Credit Facilities Agreement
dated as of November 22, 2004, as further amended by that certain Fourth
Amendment to Credit Facilities Agreement dated as of April 28, 2005, as
further amended by that certain Fifth Amendment to Credit Facilities Agreement
dated as of August 8, 2005, and as further amended by that certain Sixth
Amendment to Credit Facilities Agreement dated as of August 15, 2005 (the “Original
Credit Agreement”).

 

B.                                    Administrative Agent, Lenders and Borrowers
have agreed to the provisions set forth herein on the terms and conditions
contained herein

 

Agreement

 

Therefore, in consideration
of the mutual agreements herein and other sufficient consideration, the receipt
of which is hereby acknowledged, GTSI, TLI, Administrative Agent and the
Lenders hereby agree as follows:

 

1.              Definitions. All references to the “Agreement” or the “Credit
Agreement” in the Original Credit Agreement and in this Agreement shall be
deemed to be references to the Original Credit Agreement as it may be
amended (by this Agreement and others), restated, extended, renewed, replaced,
or otherwise modified from time to time. Capitalized terms used and not
otherwise defined herein have the meanings given them in the Original Credit
Agreement.

 

2.              Effectiveness of
Agreement. This Agreement shall
become effective as of the date first written above, but only if this Agreement
has been executed by each of GTSI, TLI, Administrative Agent and the Lenders,
and only if all of the documents listed on Exhibit A to this Agreement
have been delivered and, as applicable, executed, sealed, attested,
acknowledged, certified, or authenticated, each in form and substance
satisfactory to Administrative Agent and the Lenders, by each of GTSI, TLI,
and/or GTSI Financial Services, Inc. (“GTSIFS”), as applicable. Each
document, note, certificate or agreement listed on Exhibit A and signed by
GTSI, TLI, or GTSIFS, as applicable, is and shall be deemed (together with all
prior documents, notes, certificates and other agreements defined as Loan
Documents in the Original Credit Agreement) to be a “Loan Document.”

 

3.              Amendment to Credit
Agreement. The Original Credit
Agreement is hereby amended as follows:

 

 

6.1.2.3.        Maturity.                                             Borrower shall repay the entire amount of the
Aggregate Revolving Loan on May 31, 2006 (“Initial Maturity Date”), unless
the Aggregate Revolving Loan Facility continues after the Initial Maturity Date
as provided below in this Section 6.1.2.3. Borrower shall repay the amount
of the Swingline Loans on demand. The Aggregate Revolving Loan Facility will
continue from year to year on each anniversary of the Initial Maturity Date
unless Borrower or the Required Lenders give each party hereto written notice
of termination of not less than 90 days prior to the start of a renewal period.
Each of the Aggregate Floorplan Loan Facility, the Interim Floorplan Loan
Facility and the Swingline Facility are discretionary and may be terminated
at any time as set forth herein, with or without notice or demand as set forth
herein; provided, however, if Borrower shall give notice of termination of the
Aggregate Revolving Loan Facility, then such notice shall be deemed to be
notice of termination for all Facilities in which case Borrower shall pay the
entire amount of the outstanding Loan Obligations upon the effective date of
such notice of termination, including payment of cash collateral satisfactory
to Administrative Agent as security for Borrower’s obligation to reimburse
Administrative Agent or the Letter of Credit Issuer, as the case may be,
for 105% of all draws and expenses under all outstanding Letters of Credit and
100% of any unfunded Approvals, in which case such Approvals shall be otherwise
paid in accordance with the applicable Statements of Transaction.

 

4.              Representations and
Warranties of Borrower. Each
Borrower hereby represents and warrants to Administrative Agent and the Lenders
that (i) Borrowers’ execution of this Agreement has been duly authorized
by all requisite actions of each Borrower; (ii) no consents are necessary
from any third parties for Borrowers’ execution, delivery or performance of
this Agreement, (iii) this Agreement, the Original Credit Agreement, and
each of the other Loan Documents, constitute the legal, valid and binding
obligations of each Borrower enforceable against each such Borrower in
accordance with their terms, except to the extent that the enforceability
thereof against Borrowers may be limited by bankruptcy, insolvency or
other laws affecting the enforceability of creditors rights generally or by
equity principles of general application, (iv) except as disclosed on the
supplemental disclosure schedule attached hereto as Exhibit B and the
disclosure schedule attached to the Original Credit Agreement, all of the
representations and warranties contained in Section 11 of the Credit
Agreement are true and correct with the same force and effect as if made on and
as of the date of this Agreement, and (v) after giving effect to this
Agreement, there is no Default or no Event of Default Exists.

 

5.              Reaffirmation. Each Borrower hereby represents, warrants,
acknowledges and confirms that (i) the Original Credit Agreement and the
other Loan Documents remain in full force and effect as amended by this
Agreement, (ii) no Borrower has a defense to its obligations under the
Original Credit Agreement and the other Loan Documents, (iii) the Security
Interests of the Administrative Agent (held for the ratable benefit of the
Lenders) under the Security Documents secure all the Loan Obligations under the
Original Credit Agreement, continue in full force and effect, and have the same
priority as before this Agreement, and (iv) no Borrower has a claim
against Administrative Agent or any Lender arising from or in connection with
the Original Credit Agreement or the other Loan Documents and any such claim is
hereby irrevocably waived and released and discharged forever.

 

6.              Governing Law. This Agreement shall be governed by and construed
under the laws of the State of Missouri without giving effect to choice or
conflicts of law principles thereunder.

 

7.              Fees and Expenses. Borrowers shall promptly pay to
Administrative Agent an amount equal to all reasonable and documented third party
fees, costs and expenses incurred by the Administrative Agent in connection
with the preparation, negotiation, execution and delivery of this Seventh
Amendment to Credit Facilities Agreement.

 

2

 

8.              Section Titles.
The section titles
in this Agreement are for convenience of reference only and shall not be
construed so as to modify any provisions of this Agreement.

 

9.              Counterparts;
Facsimile Transmissions. This
Agreement may be executed in one or more counterparts and on separate
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Signatures to this
Agreement may be given by facsimile or other electronic transmission, and
such signatures shall be fully binding on the party sending the same.

 

10.       Incorporation By Reference.
Administrative Agent, Lenders and
Borrowers hereby agree that all of the terms of the Loan Documents are
incorporated in and made a part of this Agreement by this reference
(except to the extent amended hereby).

 

11.       Notice—Oral Commitments Not
Enforceable. The following notice
is given pursuant to Section 432.057 of the Missouri Revised Statutes;
nothing contained in such notice shall be deemed to limit or modify the terms
of the Loan Documents:

 

ORAL
AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM
ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT
ARE NOT ENFORCEABLE, REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT
IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER(S)) AND
US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH
COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND
EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER
AGREE IN WRITING TO MODIFY IT.

 

12.       Statutory Notice-Insurance.
The following notice is given
pursuant to Section 427.120 of the Missouri Revised Statutes; nothing
contained in such notice shall be deemed to limit or modify the terms of the
Loan Documents:

 

UNLESS YOU
PROVIDE EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY YOUR AGREEMENT WITH US,
WE MAY PURCHASE INSURANCE AT YOUR EXPENSE TO PROTECT OUR INTERESTS IN YOUR
COLLATERAL. THIS INSURANCE MAY, BUT NEED NOT, PROTECT YOUR INTERESTS. THE
COVERAGE THAT WE PURCHASE MAY NOT PAY ANY CLAIM THAT YOU MAKE OR ANY CLAIM
THAT IS MADE AGAINST YOU IN CONNECTION WITH THE COLLATERAL. YOU MAY LATER
CANCEL ANY INSURANCE PURCHASED BY US, BUT ONLY AFTER PROVIDING EVIDENCE THAT
YOU HAVE OBTAINED INSURANCE AS REQUIRED BY OUR AGREEMENT. IF WE PURCHASE
INSURANCE FOR THE COLLATERAL, YOU WILL BE RESPONSIBLE FOR THE COSTS OF THAT
INSURANCE, INCLUDING THE INSURANCE PREMIUM, INTEREST AND ANY OTHER CHARGES WE MAY IMPOSE
IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF
THE CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE MAY BE
ADDED TO YOUR TOTAL OUTSTANDING BALANCE OR OBLIGATION. THE COSTS OF THE
INSURANCE MAY BE MORE THAN THE COST OF INSURANCE YOU MAY BE ABLE TO
OBTAIN ON YOUR OWN.

 

[Signature Pages Follow]

 

3

 

IN
WITNESS WHEREOF, this Agreement has been duly executed as of the date first
above written.

 

 

	
  GTSI CORP.,
  as a Borrower

  
	
   

  
	
  By:

  	
  /s/
  THOMAS A. MUTRYN

  	
   

  
	
  Name: Thomas A. Mutryn

  
	
  Title: Senior Vice
  President and Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  TECHNOLOGY
  LOGISTICS, INC., as a Borrower

  
	
   

  
	
  By:

  	
  /s/
  TODD LETO

  	
   

  
	
  Name: Todd Leto

  
	
  Title: Vice President of
  Operations

  
	
   

  
	
   

  
	
  GE
  COMMERCIAL DISTRIBUTION FINANCE CORPORATION,

  
	
  as
  Administrative Agent and a Lender

  
	
   

  
	
  By:

  	
  /s/
  DAVID MINTERT

  	
   

  
	
  Name: David Mintert

  
	
  Title: Vice President of
  Operations

  
	
   

  
	
   

  
	
  SUNTRUST
  BANK, as a Lender

  
	
   

  
	
  By:

  	
  /s/
  R. MARK SWAAK

  	
   

  
	
  Name: R. Mark Swaak

  
	
  Title: Vice President

  
	
   

  
	
   

  
	
  WACHOVIA
  BANK, NATIONAL ASSOCIATION, as a Lender

  
	
   

  
	
  By:

  	
  /s/
  JOHN CARPENTER

  	
   

  
	
  Name: John Carpenter

  
	
  Title: Director

  
	
   

  
	
   

  
	
  MANUFACTURERS
  AND TRADERS TRUST COMPANY, as a Lender

  
	
   

  
	
  By:

  	
  /s/
  LOUIS J. NOPPENBERGER

  	
   

  
	
  Name: Louis J. Noppenberger

  
	
  Title: Vice President

  

 

4

 

ACKNOWLEDGEMENT,
CONSENT AND REAFFIRMATION OF GUARANTY

 

The undersigned, GTSI
Financial Services, Inc., acknowledges and consents to all changes in the
Original Credit Agreement set forth in this Seventh Amendment to Credit
Facilities Agreement, by and among Administrative Agent, Borrower and the
Lenders (“Seventh Amendment”) and agrees that all such changes are in the best
interests of Borrowers and the undersigned. In consideration of financial
accommodations granted and which may hereafter be granted to Borrowers by
Administrative Agent and the Lenders, in consideration of Administrative Agent’s
and the Lenders’ reliance on that certain Unlimited Guaranty, dated as of November 22,
2004, given by the undersigned, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the undersigned,
GTSI Financial Services, Inc., irrevocably and unconditionally reaffirms
pursuant to the terms of the Unlimited Guaranty its continuing guarantee of the
payment and performance of all current and future Guarantied Obligations,
including, without limitation, all Loan Obligations. The undersigned, GTSI
Financial Services, Inc., further agrees that the validity and
enforceability of the Unlimited Guaranty is not and shall not be affected in
any way or manner by any of the changes in the financing set forth in the
Seventh Amendment, that the Unlimited Guaranty is in full force and effect, and
the undersigned, GTSI Financial Services, Inc., has no defenses of any
kind or nature with respect to his obligations under the Unlimited Guaranty.

 

The undersigned, GTSI Financial Services, Inc.,
has reviewed the attached Seventh Amendment and all other documents and
financial statements the undersigned deems necessary relating to the Borrowers
and the Guarantied Obligations, including, without limitation, the Loan
Obligations.

 

	
   

  	
  GTSI
  Financial Services, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     s/ JACK
  HELMLY

  	
   

  
	
   

  	
  Name:

  	
  Jack Helmly

  
	
   

  	
  Title:

  	
  President

  
					

 

 

Exhibit A

 

Documents
and Requirements

 

1.               Seventh Amendment to Credit
Facilities Agreement.

 

2.               Ratification of Unlimited
Guaranty of Loan Obligations executed by GTSI Financial Services, Inc.

 

Exhibit B

 

Disclosure Schedule 

 

None, unless listed below.

 

5

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