Document:

exv10w1

	 	 	 	 	 

Exhibit 10.1

LIMITED WAIVER AND AMENDMENT TO LOAN DOCUMENTS

     THIS LIMITED WAIVER AND AMENDMENT to Loan Documents (this “Amendment”) is entered into as of
February 26, 2009 by and between SILICON VALLEY BANK, a California corporation (“Bank”), and
ENDOCARE, INC., a Delaware corporation (“Borrower”), whose chief executive office is located at 201
Technology Drive, Irvine, California 92618.

Recitals

     A. Borrower and Bank are parties to that certain Loan and Security Agreement, with an
Effective Date of October 26, 2005 (as amended, restated, supplemented or otherwise modified from
time to time, the “Loan Agreement”).

     B. Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

     C. Borrower has requested that Bank amend the Loan Agreement, as herein set forth, and Bank
has agreed to the same, but only to the extent, in accordance with the terms, subject to the
conditions and in reliance upon the representations and warranties set forth herein.

Agreement

     Now, Therefore, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to
be legally bound, the parties hereto agree as follows:

     1. Definitions. Capitalized terms used but not defined in this Amendment shall have the
meanings given to them in the Loan Agreement.

     2. Amendment to Loan Documents.

          2.1 Limited Waiver Regarding Tangible Net Worth Defaults. Borrower is currently in default of
the Loan Agreement for failing to comply with the Tangible Net Worth Financial Covenant set forth
in Section 6.9(a) of the Loan Agreement for the compliance period ending December 31, 2008 (the
“Existing TNW Default”). Borrower has advised Bank that Borrower anticipates that it shall be in
default of the Loan Agreement for failing to comply with the Tangible Net Worth Financial Covenant
set forth in Section 6.9(a) of the Loan Agreement for the compliance period ending January 31, 2009
(the “Anticipated TNW Default” and together with the “Existing TNW Default, hereinafter, the “TNW
Defaults”). Bank and Borrower agree that the Borrower’s TNW Defaults are hereby waived. It is
understood by the parties hereto, however, that such waiver does not constitute a waiver of any
other provision or term of the Loan Agreement or any related document, nor an agreement to waive in
the future this covenant or any other provision or term of the Loan Agreement or any related
document.

1

 

          2.2 Modified Tangible Net Worth Financial Covenant. The Tangible Net Worth Financial Covenant
set forth in Section 6.9(a) of the Loan Agreement is hereby amended in its entirety to read as
follows:

(a) Tangible Net Worth. A Tangible Net Worth of at least
the sum of the following (the “Required TNW Amount”): (a) the TNW
Base Amount (as defined below), plus (b) 25% of all consideration
received after January 1, 2009 for issuances of Endocare’s equity
securities and the principal amount of Subordinated Debt of the
Borrower, plus (c) 25% of the Endocare’s positive consolidated
Net Income in each fiscal quarter ending after January 1, 2009.

As used herein, the term “TNW Base Amount” means, as of any date
of determination:

(a) <$1,500,000> with respect to the month ending February
28, 2009;

(b) <$2,000,000> with respect to the month ending March 31,
2009; and

(c) <$2,500,000> with respect to the month ending April 30,
2009.

Increases in the Required TNW Amount based on consideration
received for equity securities and Subordinated Debt of the
Borrower shall be effective as of the end of the month in which
such consideration is received, and shall continue effective
thereafter. Increases in the Required TNW Amount based on Net
Income shall be effective on the last day of the fiscal quarter
in which such Net Income is realized, and shall continue
effective thereafter. In no event (except for step-downs (if any)
in the TNW Base Amount as expressly set forth in the definition
thereof) shall the Required TNW Amount be decreased from one
fiscal period to another subsequent fiscal period.

          2.3 Extension of Maturity Date. The definition of “Maturity Date” set forth in Section 13.1
of the Loan Agreement hereby is amended and restated in its entirety to read as follows:

“Maturity Date” is May 27, 2009.

2

 

     3. Limitation of Amendments.

          3.1 The amendments set forth in Section 2, above, are effective for the purposes set forth
herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any
amendment, waiver or modification of any other term or condition of any Loan Document, or (b)
otherwise prejudice any right or remedy which Bank may now have or may have in the future under or
in connection with any Loan Document.

          3.2 This Amendment shall be construed in connection with and as part of the Loan Documents and
all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan
Documents, as amended hereby (as applicable), are hereby ratified and confirmed and shall remain in
full force and effect.

     4. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower
hereby represents and warrants to Bank as follows:

          4.1 Immediately after giving effect to this Amendment (a) the representations and warranties
contained in the Loan Documents are true, accurate and complete in all material respects as of the
date hereof (except to the extent such representations and warranties relate to an earlier date, in
which case they are true and correct as of such date), and (b) no Event of Default has occurred and
is continuing;

          4.2 Borrower has the power and authority to execute and deliver this Amendment and to perform
its obligations under the Loan Documents, as amended by this Amendment;

          4.3 The organizational documents of Borrower delivered to Bank on the Effective Date remain
true, accurate and complete and have not been amended, supplemented or restated (except for the
amendment thereof attached as Exhibit 3.1 to the Form 8-K filed by Borrower with the S.E.C. on
August 21, 2007) and, as so amended, are and continue to be in full force and effect;

          4.4 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Documents, as amended by this Amendment, have been duly
authorized;

          4.5 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Documents, as amended by this Amendment, do not and will not
contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual
restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or
other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d)
the organizational documents of Borrower;

          4.6 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Documents, as amended by this Amendment, do not require any
order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or
public body or authority, or subdivision thereof, binding on Borrower, except as already has been
obtained or made; and

3

 

          4.7 This Amendment has been duly executed and delivered by Borrower and is the binding
obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or
other similar laws of general application and equitable principles relating to or affecting
creditors’ rights.

     5. Fee. In consideration for Bank entering into this Amendment, Borrower shall pay Bank a fee
of $12,500.00 concurrently with the execution and delivery of this Amendment, which fee shall be
non-refundable and in addition to all interest and other fees payable to Bank under the Loan
Documents. Bank is authorized to charge said fee to Borrower’s loan account.

     6. Counterparts. This Amendment may be executed in any number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same instrument.

     7. Effectiveness. This Amendment shall be deemed effective upon the due execution and
delivery to Bank of this Amendment by each party hereto.

[Signature page follows.]

4

 

     In Witness Whereof, the parties hereto have caused this Amendment to be duly executed
and delivered as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	BANK	 	BORROWER
	 
	 	 	 	 	 	 	 	 	 	 
	Silicon Valley Bank	 	 	 	Endocare, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By: 

Name:

	 	/s/ Kurt Miklinski
 

Kurt Miklinski
	 	 
	 	By:

Name:
	 	/s/ Michael Rodriguez
 

Michael Rodriguez
	 	 
	Title:

	 	Vice President
	 	 	 	Title:
	 	SVP, Finance & CFO	 	 

5exv10w01

Exhibit 10.01

Annual Bonus Plan

(as amended and restated through

October 15, 2008)

 

 

Valero
Energy Corporation

Annual Bonus Plan

Table of Contents

	 	 	 	 	 	 	 	 	 
	Article	 	Topic	 	Page
	 	1	 	 	Definitions
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	 	2	 	 	Administration
	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	 	3	 	 	Participation
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	 	4	 	 	Determination of Bonus Awards
	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	 	5	 	 	Bonus Targets
	 	 	5	 
	 	 	 	 	 
	 	 	 	 
	 	6	 	 	Form of Payment
	 	 	5	 
	 	 	 	 	 
	 	 	 	 
	 	7	 	 	Miscellaneous Terms and Provisions
	 	6

1

 

INTRODUCTION

The Valero Energy Corporation Annual Bonus Plan (hereinafter referred to as the “Plan”) has been
established for the purpose of providing bonus compensation to eligible employees of Valero Energy
Corporation and its Affiliates (hereinafter collectively referred to as the “Company”). The
Company intends and desires to create individual performance incentive by providing bonus
compensation awards based upon individual contributions to Company profitability. Such bonus
compensation is intended to encourage levels of individual performance that will assure focus by
employees on continued Company profitability. It is further intended that when added to other
forms of compensation the bonus compensation awards will result in total compensation to employees
in amounts that are competitive when Company performance is compared to peer organizations.

Article 1 — Definitions

For purposes of the Plan, unless the context requires otherwise, the following terms should have
the meanings set forth below.

	1.1	 	“Affiliate” means (a) any entity that, directly or indirectly through one or more
intermediaries, is controlled by the Company and (b) any entity in which the Company has a
significant equity interest, in each case determined by the Committee.
	 
	1.2	 	“Board” means the Board of Directors of the Company.
	 
	1.3	 	“Bonus Target” means a percentage established to represent a normal or average bonus
percentage determined through competitive survey analysis and based on each position’s
relative importance to the overall financial success of the Company.
	 
	1.4	 	“Committee” means the Compensation Committee of the Board.
	 
	1.5	 	“Company” means Valero Energy Corporation and its Affiliates.
	 
	1.6	 	“Discretionary Adjustment Factor” means the authority of the Committee:

(i) to determine whether to award a bonus to an individual;

(ii) to adjust the Company’s total calculated bonus awards upward or downward by up to a
maximum 25 percentage points or 25 percent of the amount of the Bonus Target earned,
whichever is higher.

(iii) to adjust or award the bonus amounts payable to subgroups of Participants (e.g.,
retail Participants, refining Participants) in greater or lesser percentages than amounts to
be paid to other Participants;

all such discretion to be based upon such factors as the Committee deems appropriate.

2

 

	1.7	 	“Employee” means an employee of the Company.
	 
	1.8	 	“Fair Market Value” means, with respect to any property (including, without limitation, any
shares, units or other securities), the fair market value of such property determined by such
methods or procedures as shall be established from time to time by the Committee.
Notwithstanding the foregoing, unless otherwise determined by the Committee, the Fair Market
Value of Company shares on a given date for purposes of the Plan shall be the mean of the high
and low sales prices of the shares on the New York Stock Exchange Consolidated Exchange as
reported in the consolidation transaction reporting system on such date or, if such Exchange
is not open for trading on such date, on the next following date when such Exchange is open
for trading.
	 
	1.9	 	“Participant” means an Employee who is selected by the Committee to participate in the Plan.
	 
	1.10	 	“Peer Group” means those companies in the petroleum and energy services industry sector
designated by the Committee as comparator companies which will be benchmarked for determining
the Company’s performance as measured by selected Performance Criteria.
	 
	1.11	 	“Performance Criteria” means those performance measures approved by the Compensation
Committee that determine the level of Bonus Target to be earned, subject to the Discretionary
Adjustment Factor.
	 
	1.12	 	“Plan Year” means the Company’s fiscal year.
	 
	1.13	 	“Plan” means the Valero Energy Corporation Annual Bonus Plan.

Article 2 — Administration

	2.1	 	The Plan shall be administered by the Committee. The Committee shall consist of no less than
three “Non-Employee Directors” (as defined in Rule 16b-3 under the Securities Exchange Act of
1934, as amended from time to time). In the event the Committee fails to meet the foregoing
criteria, then additional non-employee persons shall be appointed by the Board for purposes of
administering this Plan so that the committee administering this Plan shall be composed solely
of three or more Non-Employee Directors.
	 
	2.2	 	The Committee is empowered to:

	 	2.21	 	Review and approve all determinations relating to the eligibility of
Participants;
	 
	 	2.22	 	Make rules and regulations for the administration of the Plan which are not
inconsistent with the terms and provisions hereof;
	 
	 	2.23	 	Construe all terms, provisions, conditions, and limitations of the Plan in good
faith. All such determinations shall be final and conclusive on all parties of
interest;

3

 

	 	2.24	 	Review and approve determinations and computations concerning the amounts to
which any Participant or his beneficiary is entitled under the Plan;
	 
	 	2.25	 	Select, employ, and compensate from time to time consultants, accountants,
attorneys and other agents as the Committee may deem necessary or advisable for the
proper and efficient administration of the Plan.

	2.3	 	The foregoing list of express powers is not intended to be either complete or exclusive, but
the Committee shall, in addition, have such powers, whether or not expressly authorized, that
it may deem necessary, desirable, advisable, or proper for the supervision and administration
of the Plan. Except as otherwise specifically provided herein, the decision or judgment of
the Committee on any question arising hereunder in connection with the exercise of any of its
powers shall be final, binding, and conclusive upon all parties concerned.
	 
	2.4	 	The Committee shall have the responsibility of authorizing payment to each eligible
Participant and directing that such payment be disbursed by the Company.
	 
	2.5	 	The Board or the Committee may, at any time, amend or terminate the Plan. Such amendments or
terminations may be made without the consent of the Participants.

Article 3 — Participation

	3.1	 	The designation of Employees of the Company as Participants under the Plan shall be approved
by the Committee, and no Employee of the Company will have the right to require the Committee
to make him or her a Participant or to allow him or her to remain a Participant under the
Plan.

Article 4 — Determination of Bonus Awards

	4.1	 	During the course of the Plan Year, the Committee shall review and approve those Performance
Criteria which the Committee believes will measure the Company’s financial, shareholder,
and/or operational performance for the applicable Plan Year. The Performance Criteria will be
developed by Company management and submitted to the Committee for review and discussion. The
Committee may request Company management to provide threshold, target, and maximum levels of
performance for each Performance Criteria considered.
	 
	4.2	 	The Company’s performance may be evaluated on an absolute basis by determining the Company’s
achievement versus a budgeted or pre-established level of performance approved by the
Committee. Likewise, the Company’s performance may be evaluated by comparing the Company’s
performance against a Peer Group’s performance achievement for the same Performance Criteria.

4

 

	4.3	 	When the Performance Criteria are established and approved during the course of the Plan
Year, the Committee may elect to weight each of the Performance Criteria based upon the
strategic importance of the respective Performance Criteria in consideration of the Company’s
annual business plan. The weightings of the Performance Criteria may change from one Plan
Year to the next.
	 
	4.4	 	In determining the Company’s performance during a measurement period, Performance Criteria
will be utilized. These Performance Criteria may be modified, deleted, or added to from one
Plan Year to the next as determined by the Committee in its judgment and discretion.
	 
	4.5	 	Following the close of the Plan Year, the Committee will evaluate the Company’s performance
compared to the Performance Criteria. The results of this evaluation will serve as the basis
for the determination of the amount of Bonus Target earned, which may range from 0 percent to
as much as 200 percent of Participants’ Bonus Targets. At this time, the Committee has the
authority to consider an addition to or subtraction from the bonus by applying a Discretionary
Adjustment Factor (as defined in Article 1.6) as the Committee may determine.
	 
	4.6	 	The Committee will normally authorize the payment of bonus awards within two and one-half
months (75 days) after the close of the Plan Year. However, the Committee reserves the right
to accelerate the determination and payment of bonus awards prior to the completion of the
Plan Year based on the estimated or expected performance of the Company for such Plan Year.

Article 5 — Bonus Targets

	5.1	 	Bonus Targets for each position are established based upon competitive survey data and the
position’s relative importance to the overall financial success of the Company. The Committee
shall review and approve a Bonus Target for each officer.
	 
	5.2	 	Each bonus award shall be calculated by using the established Bonus Target for Participants
in the Plan, adjusted by the results of the Performance Criteria and the Discretionary
Adjustment Factor. A qualitative evaluation of a Participant’s performance may also be used
to adjust a Participant’s bonus award.

Article 6 — Form of Payment

	6.1	 	Bonuses payable under the Plan shall be paid in the form of cash in whole or in part or, if
permitted under applicable NYSE and SEC rules and regulations, in the form of common stock of
the Company in whole or in part. Under the Plan, if permitted under applicable NYSE and SEC
rules and regulations, certain Participants may also be provided with an election to purchase,
at Fair Market Value, common stock of the Company utilizing a pre-determined portion of their
bonus.

5

 

	6.2	 	With respect to Plan bonuses payable in part or in whole in shares of common stock of the
Company, a Participant may pay all or part of the amount of any taxes required to be collected
or withheld by the Company upon payment of the Participant’s bonus by electing, before an
established date prior to the time of payment of the bonus, to have the Company withhold from
the number of common shares otherwise deliverable under the bonus a number of common shares
having a Fair Market Value on the established date not exceeding the amount of the tax
payment. However, for this purpose, federal income tax may be withheld at the highest personal
tax rate then in effect.
	 
	6.3	 	The Committee may approve a deferral of the payment of bonuses with payment in whole at a
later date or in installments over a period of time. The length of time of deferral or
installment period will be determined at the discretion of the Committee in accordance with
applicable laws and regulations.

Article 7 — Miscellaneous Terms and Provisions

	7.1	 	No Employee shall have any claim or right to be paid a bonus or any form of award, and the
award of a bonus will not be construed as giving a Participant the right to be retained in the
employ of the Company. Further, the Company expressly reserves the right at any time to
terminate the employment of any Participant free from any liability under the Plan.
	 
	7.2	 	The validity, construction, and effect of the Plan and any actions taken or relating to the
Plan shall be determined in accordance with the laws of the State of Texas and applicable
Federal law.
	 
	7.3	 	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, expressly to assume and agree to perform the Company’s obligations under this Plan in
the same manner and to the same extent that the Company would be required to perform them if
no such succession had taken place. As used herein, the “Company” shall mean the Company as
hereinbefore defined and any aforesaid successor to its business and/or assets.
	 
	7.4	 	No member of the Board or the Committee, nor any officer or Employee of the Company acting on
behalf of the Board or the Committee, shall be personally liable for any action,
determination, or interpretation taken or made in good faith with respect to the Plan, and all
members of the Board or the Committee and each and any officer or Employee of the Company
acting on their behalf shall, to the extent permitted by law, be fully indemnified and
protected by the Company in respect of any such action, determination, or interpretation.
	 
	7.5	 	Notwithstanding anything in this Plan to the contrary, if any Plan provision or bonus award
under the Plan would result in the imposition of an applicable tax under Section 409A of the
Internal Revenue Code of 1986, as amended, and related regulations and Treasury pronouncements
(“Section 409A”), that Plan
provision or bonus award may be reformed to avoid imposition of the applicable tax and no
action taken to comply with Section 409A shall be deemed to adversely affect the
Participant’s rights to an award.

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}]]