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WWW.EXFILE.COM -- 888-775-4789 -- CAPITAL CITY ENERGY -- EXHIBIT 10.11 TO FORM 10-K -- 16464

    EXHIBIT
10.1.1

    
 

    CAPITAL
CITY ENERGY GROUP, INC.

    2008
INCENTIVE PLAN

    

    NON-QUALIFIED
STOCK OPTION AWARD AGREEMENT

     

    THIS
AWARD AGREEMENT (this “Agreement”) is made
as of ____________ (the “Grant Date”), between
Capital City Energy Group, Inc., a Nevada corporation (the “Company”), and
_________________ ( the “Participant”).

     

    WHEREAS,
pursuant to the Company’s 2008 Incentive Plan (the “Plan”), a copy of
which is attached hereto as Exhibit A and made a
part hereof, the Company and the Participant desire to enter into this Agreement
whereby the Company will grant to the Participant a certain number of Options to
acquire Common Stock; and

     

    NOW
THEREFORE, the parties hereto agree as follows:

     

    1.    Plan
Acknowledgement.  The undersigned agrees that this Agreement
has been executed and delivered, and the Option has been granted hereunder, in
connection with and as a part of the compensation and incentive arrangements
between the Company and the Participant and pursuant to the terms and conditions
of the Plan.  The Participant agrees to be bound by, and comply with,
the terms of the Plan. Capitalized terms used in this Agreement and not defined
herein shall have the meanings ascribed thereto in the Plan.

     

    2.    Option
Grant.  Effective as of the Grant Date, the Company hereby
grants to the Participant an Option to purchase _______ shares of Common
Stock.  The exercise price of the Option will be $____ per share (the
“Exercise
Price”).  The Option is a non-qualified stock
option.  Subject to the vesting and termination of service provisions
in Section 3, the Option will expire and cease to be exercisable on
_____________.

     

    3.    Vesting; Company Repurchase
Rights.  Provided that the Participant remains employed as an
officer of the  Company or any of its Subsidiaries or Affiliates as of
on the relevant date, or, serves as a director on the existing Board of
Directors, the Option shall vest and become exercisable as follows:

     

    
      
        
          
            
              
                
                  	
                          Date

                           

                        	
                          Percent
      of Option Vested and Exercisable

                        
	
                          Prior
      to the first anniversary of the Grant Date:

                        	
                          0%

                        
	
                          After
      the first anniversary of the Grant Date

                        	
                          100%

                        

                

              

            

          

        

      

    

     

    If the
Participant ceases to be employed by the Company (and all of its Subsidiaries
and Affiliates) for any reason, any unexercised portion of the Option that has
not been forfeited by reason of the Participant’s termination of employment or
other service (the “Remaining Shares”)
and any Common Stock acquired through the exercise of the Option (the “Option Shares”) owned
by such Participant (or a Permitted Transferee, as such term is defined in the
Securities Holders Agreement) at the time of the Participant’s termination of
employment or other service shall be subject to repurchase by the Company

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      or its
designee in accordance with the terms of this Agreement.  Upon
termination, the Company may elect to repurchase any such Remaining Shares and
Option Shares (all or a portion thereof) at the “Option Purchase
Price,” which shall be the fair market value of each such
share less the Exercise Price (as applicable); provided, further, that if
the Participant’s employment or other service with the Company (and all of its
Subsidiaries and Affiliates) is terminated for Cause and if the Company or its
designee repurchases any of such Participant’s Option Shares, the “Option Purchase
Price,” shall be the adjusted cost price. For the puposes of this Section
3, the "fair market value" of each share shall be based on the closing price of
the Company's common stock for the day immediately preceding the date the
Company determines to repurchase the participant's Remaining Shares or Option
Shares, as applicable.

    4.    Exercise of Option;
Payment.  Upon a
termination of the Participant’s employment or other service with the Company
and all of its Subsidiaries and Affiliates for any reason other than for Cause,
the Participant shall forfeit any portion of the Option which has not vested and
the Participant, his or her Permitted Transferee, or, in the event of the
Participant’s death or Disability, the Participant’s heirs or other legal
representatives, as applicable, shall have until the earlier of (i) ninety (90)
days following the date of such termination or (ii) the expiration of the
Option, to exercise any vested portion of the Option.  Subject to
vesting and other restrictions provided for hereunder, the Option may be
exercised, and payment in full of the aggregate Exercise Price made, by a
Participant (or, if applicable, by the Participant’s Permitted Transferee, heirs
or other legal representative) only by written notice (in the form prescribed by
the Committee) to the Company specifying the number of shares to be
purchased.  The aggregate Exercise Price shall be paid in full upon
the exercise of the Option.  Payment must be made by (i) cash or a
certified or bank cashier’s check; (ii) if approved by the Committee in its
discretion, shares of previously owned Common Stock having an aggregate Fair
Market Value on the date of exercise equal to the aggregate Exercise Price;
(iii) if approved by the Committee in its discretion, through the withholding by
the Company from the Common Stock otherwise to be received, with such withheld
Common Stock having an aggregate Fair Market Value on the date of exercise equal
to the aggregate Exercise Price; or (iv) by any combination of such methods of
payment or any other method acceptable to the Committee in its
discretion.

     

    5.    Restrictions on
Transfer.  The Option granted hereunder are not transferable by
the Participant.  The Participant acknowledges and agrees that the
Option may not be sold, transferred, gifted, donated, pledged, hypothecated,
disposed of or assigned by the Participant.

     

    6.    Securities Laws
Restrictions.  The Participant represents that the Option and
the Option Shares are for the Participant’s own account and not on behalf of
others. The Participant understands and acknowledges that federal, state and
foreign securities laws govern and restrict the Participant’s right to offer,
sell or otherwise dispose of the Options and the Option Shares unless the
Participant’s offer, sale or other disposition thereof is registered under the
Securities Act and federal, state and foreign securities laws or, in the opinion
of the Company’s counsel, such offer, sale or other disposition is exempt from
registration thereunder. The Participant agrees that the Participant will not
offer, sell or otherwise dispose of the Options or the Option Shares in any
manner which would: (i) require the Company to file any registration statement
(or similar filing under applicable securities law) with the Securities and
Exchange Commission or to amend or supplement any such filing or (ii) violate or
cause the Company to violate the Securities Act, the rules and regulations
promulgated thereunder or any other applicable securities law.  The
Participant further understands that the certificates for any Option Shares will
bear the legend set 

     

    
      
        
        

      

      
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    forth in
the Plan or such other legends as the Company deems necessary or desirable in
connection with the Securities Act or other rules, regulations or
laws.

     

    7.    Participant’s
Representations.  The Participant hereby represents and
warrants to the Company that (i) the execution, delivery and performance of this
Agreement by the Participant does not and will not conflict with, breach,
violate or cause a default under any contract, agreement, instrument, order,
judgment or decree to which the Participant is a party or by which the
Participant is bound and (ii) upon the execution and delivery of this Agreement
by the Company, this Agreement shall be the valid and binding obligation of the
Participant, enforceable in accordance with its terms. The Participant hereby
acknowledges and represents that the Participant has consulted with (or has had
an opportunity to consult with) independent legal counsel regarding the
Participant’s rights and obligations under this Agreement (including, without
limitation, the Plan and the Securities Holders Agreement) and that the
Participant fully understands the terms and conditions contained herein and
therein.  The Participant further acknowledges that neither the
Company nor any other party will have any duty or obligation to disclose to the
Participant, and the Participant will have no right to be advised of, any
material information regarding the Company or any of its Subsidiaries or
Affiliates at any time prior to, upon or in connection with the repurchase of
any Option Shares or Remaining Shares upon the termination of the Participant’s
employment or other service with the Company (and all of its Subsidiaries and
Affiliates).

     

    8.    Rights of
Participants.  Nothing in this Agreement shall interfere with
or limit in any way the right of the Company or any of its Subsidiaries or
Affiliates to terminate the Participant’s employment or other service at any
time (with or without Cause), nor confer upon the Participant any right to
continue in the employ of the Company or any of its Subsidiaries or Affiliates
for any period of time or to continue the Participant’s present (or any other)
rate of compensation. Nothing in this Agreement shall confer upon the
Participant any right to future Awards under the Plan, and nothing in this
Agreement shall provide for any adjustment to the number of Options granted
hereunder upon the occurrence of subsequent events except as provided in the
Plan.

     

    9.    Withholding of
Taxes.  The Company shall be entitled, if necessary or
desirable, to withhold from any amounts due and payable by the Company or its
Subsidiaries or Affiliates to the Participant (or secure payment from the
Participant in lieu of withholding) the amount of any withholding or other tax
due with respect to the Option (including the Option Shares), and the Company
may defer the grant of the Option or the issuance of Common Stock thereunder
unless indemnified by the Participant to its satisfaction.

     

    10.    Restrictive
Covenants.  In consideration of the receipt of this Award, the
Participant agrees to be bound by this Section 10.

     

    (a)    The
Participant shall not, at any time during his or her employment or other service
with the Company or any of its Subsidiaries or Affiliates or during the twelve
month period
immediately following such Participant’s termination of employment or other
service with the Company and all of its Subsidiaries and Affiliates (the “Restricted Period”),
directly or indirectly engage in, have any equity interest in, or manage or
operate any person, firm, corporation, partnership or business (whether as
director, officer, employee, agent, representative, partner, security holder,
consultant or otherwise (each, a “Position”)) that
engages in any business or activity (a “Competitive
Activity”) which competes with any services or products that, during the
period of the Participant’s employment or other service with the Company or any
of its Subsidiaries or Affiliates, the Company or any of its Subsidiaries or
Affiliates (i) sold, licensed or provided; or (ii) had taken affirmative
steps to commence selling, licensing or providing.  Notwithstanding
the foregoing, the Participant shall be permitted to acquire a passive stock or
equity interest in such a business, provided that the stock or other equity
interest acquired 

     

    
      
        
        

      

      
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    is
registered under the Securities Exchange Act of 1934, as amended, and is not
more than one percent (1%) of the outstanding interest in such
business.  

     

    (b)    During
the Restricted Period, the Participant will not, directly or indirectly, recruit
or otherwise solicit or induce any customer, subscriber or supplier of the
Company or its Subsidiaries or Affiliates to (i) terminate its arrangement with
the Company or its Subsidiaries or Affiliates, (ii) otherwise change its
relationship with the Company or its Subsidiaries or Affiliates or (iii)
establish any relationship with the Participant for any business purpose deemed
competitive with any services or products that, during the period of the
Participant’s employment or other service with the Company or any of its
Subsidiaries or Affiliates, the Company or any of its Subsidiaries or Affiliates
anywhere in North America sold or provided, or had taken affirmative steps to
commence selling or providing.

     

    (c)    During
the Restricted Period, the Participant will not directly or indirectly, (i) hire
any employee, consultant or independent contractor of the Company or any of its
Subsidiaries or Affiliates or (ii) recruit or otherwise solicit or induce any
employee, consultant or independent contractor of the Company or any of its
Subsidiaries or Affiliates to (x) terminate his or her employment or other
arrangement with the Company or any of its Subsidiaries or Affiliates or (y)
otherwise change his or her relationship with the Company or any of its
Subsidiaries or Affiliates.

     

    (d)    Except as
required in the faithful performance of the Participant’s duties and
responsibilities to the Company or its Subsidiaries or Affiliates, the
Participant shall, in perpetuity, maintain in confidence and shall not (i)
directly, indirectly or otherwise, use, disseminate, disclose or publish, or use
for his or her benefit or the benefit of any person, firm, corporation or other
entity any confidential or proprietary information or trade secrets of or
relating to the Company or any of its Subsidiaries or Affiliates, including,
without limitation, information with respect to the Company’s or any of its
Subsidiaries or Affiliates’ operations, processes, products, inventions,
business practices, finances, principals, vendors, suppliers, customers,
potential customers, marketing methods, costs, prices, contractual
relationships, regulatory status, compensation paid to employees or other terms
of employment or (ii) deliver to any person, firm, corporation or other entity
any document, record, notebook, computer program or similar repository of or
containing any such confidential or proprietary information or trade
secrets.  The parties hereby stipulate and agree that as between them
the foregoing matters are important, material and confidential proprietary
information and trade secrets and affect the successful conduct of the
businesses of the Company and its Subsidiaries and Affiliates (and any successor
or assignee of the Company or any of its Subsidiaries or
Affiliates).  Upon termination of the Participant’s employment or
other service with the Company and its Subsidiaries and Affiliates for any
reason, the Participant will promptly deliver to the Company all correspondence,
drawings, manuals, letters, notes, notebooks, reports, programs, plans,
proposals, financial documents, or any other documents concerning the Company’s
and its Subsidiaries’ and Affiliates’ customers, business plans, marketing
strategies, products or processes.

     

    (e)    Notwithstanding
Section 10(d) hereof, the Participant may respond to a lawful and valid subpoena
or other legal process but shall give the Company the earliest possible notice
thereof, and shall, as much in advance of the return date of such subpoena as
possible, make available to the Company and its counsel the documents and other
information sought and shall assist such counsel in resisting or otherwise
responding to such process.

     

    (f)    The
Participant agrees not to disparage the Company, any of its Subsidiaries or
Affiliates, any of their services, products or practices or any of their
directors, officers, agents, representatives, stockholders or affiliates, either
orally or in writing, at any time.

     

    
      
        
        

      

      
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    (g)    In the
event the terms of this Section 10 shall be determined by any court of competent
jurisdiction to be unenforceable by reason of its duration or geographic scope
or by reason of its being too extensive in any other respect, it will be
interpreted to extend only over the maximum period of time for which it may be
enforceable, over the maximum geographical area as to which it may be
enforceable, or to the maximum extent in all other respects as to which it may
be enforceable, all as determined by such court in such action.

     

    (h)    Notwithstanding
the foregoing, in any case in which the subject matter of any subsection of this
Section 10 is covered in a written employment or other agreement between the
Company or any of its Subsidiaries or Affiliates and the Participant, the terms
of that agreement shall govern with respect to such subject matter.

     

    11.    Notices.  Any
notice required or permitted under this Agreement shall be in writing and shall
be either delivered by reputable overnight courier, personally delivered, or
mailed by first class mail, return receipt requested, to the Participant at the
address indicated in the Company’s records for such Participant, and to the
Company at the address below indicated:

     

    Notices to the
Company:

    

    Capital
City Energy Group, Inc.

    8351
North High Street, Suite 101

    Columbus,
OH 43235

    Attention:  Chief
Executive Officer

    

    With a copy
to:

    

    Kelley
Drye & Warren, LLP

    333 West
Wacker Drive, Suite 2600

    Chicago,
IL 60601

    Attention:  Timothy  R.
Lavender, Esq.

     

    or such
other address or to the attention of such other person as the recipient party
shall have specified by prior written notice to the sending
party.  Any notice under this Agreement shall be deemed to have been
given when so delivered or mailed.

     

    12.    General
Provisions.

     

    (a)    Transfers in Violation of
Agreement.  Any transfer or attempted transfer of the Option or
the Option Shares in violation of any provision of this Agreement, the Plan or
the Securities Holders Agreement shall be null and void and of no force and
effect, and the purported transferee shall have no rights or privileges in or
with respect to the Company.

     

    (b)    Severability.  Whenever
possible, each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under
any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision or any other jurisdiction,
but this Agreement shall be reformed, construed and enforced in such
jurisdiction as if such invalid, illegal or unenforceable provision had never
been contained herein.

     

    (c)    Remedies.  Each
of the Company and the Participant will be entitled to enforce its rights under
the Plan and this Agreement specifically to recover damages and costs (including

     

    
      
        
        

      

      
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    reasonable
attorneys’ fees) caused by any breach of any provision of the Plan and this
Agreement and to exercise all other rights existing in its favor. Each of the
Participant and the Company acknowledges and agrees that money damages may not
be an adequate remedy for any breach of the provisions of the Plan and this
Agreement and that any party may in its sole discretion apply to any court of
law or equity of competent jurisdiction (without posting any bond or deposit)
for specific performance and/or other injunctive relief in order to enforce or
prevent any violations of the provisions of the Plan and this
Agreement.

     

    (d)    Complete
Agreement.  This Agreement and the Plan and the other documents
expressly referred to herein and therein, including the Securities Holders
Agreement, embody the complete agreement and understanding among the parties and
supersede and preempt any prior understandings, agreements and representations
by or among the parties, written or oral, which may have related to the subject
matter hereof in any way.

     

    (e)    Counterparts.  This
Agreement may be executed in separate counterparts, each of which is deemed to
be an original and all of which taken together constitute one and the same
agreement.

     

    (f)    Successors and
Assigns.  Except as otherwise provided herein, this Agreement
shall bind and inure to the benefit of, and be enforceable by, the Participant
and the Company and their respective successors and assigns (including
subsequent holders of the Option or the Option Shares); provided, that the
rights and obligations of the Participant under this Agreement shall not be
assignable except in connection with a permitted transfer of the Option or the
Option Shares in accordance with the Plan, this Agreement and the Securities
Holders Agreement.

     

    (g)    Choice of
Law.  This Agreement shall be construed, interpreted and the
rights of the parties determined in accordance with the laws of the State of
Nevada (without reference to any choice of law rules that would require the
application of the laws of any other jurisdiction).  Each of the
Company and the Participant waives the necessity for personal service of any and
all process upon it and consents that all such service of process may be made by
registered or certified mail (return receipt requested), in each case directed
to such party in accordance with the notice requirements set forth in this
Agreement, and service so made will be deemed to be completed on the date of
actual receipt. Each of the Company and the Participant consents to service of
process as aforesaid.  Nothing in this Agreement or the Plan will
prohibit personal service in lieu of the service by mail contemplated
herein.

     

    (h)    Amendment and
Waiver.  The provisions of this Agreement may be amended by the
Committee at any time; provided, that the Committee may not change any term of
this Agreement in a manner which would have a material adverse effect on the
Participant without the Participant’s approval, unless such amendment is
required by applicable law or rule. Notwithstanding the foregoing, to the extent
any amendment to the Securities Holders Agreement affects the terms of this
Agreement, the Participant and any Permitted Transferee shall be deemed to have
consented to such amendment.

     

    13.    Business Days.  If
any time period for giving notice or taking action hereunder expires on a day
which is a Saturday, Sunday or legal holiday in the state in which the Company’s
principal office is located, the time period shall be automatically extended to
the business day immediately following such Saturday, Sunday or
holiday.

     

    * * * * *
* * * * * * * * * *

    
 

    
      
        
        

      

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

     

    
      
        	 	
                CAPITAL
      CITY ENERGY GROUP, INC.

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ 	 
	 	 	Name 	 
	 	 	Title:
      CEO 	 
	 	 	 	 

      

    

    
      
        
          
            	 	
                    PARTICIPANT

                  	 
	 	 	 	 
	
                     

                  	
                     

                  	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

          

        

      

    

    

    

     

    
 

    
 

    
      
        
        

      

      
        - 7
-EXHIBIT 4.1

 

AMENDMENT NO. 5

 

This Amendment No. 5 (“Amendment”)
dated as of May 15, 2009 (“Effective Date”) is among Edge Petroleum
Corporation, a Delaware corporation (“Borrower”), the Lenders (as
defined below), and Union Bank of California, N.A., as administrative agent for
such Lenders (in such capacity, the “Administrative Agent”) and as
issuing lender (in such capacity, the “Issuing Lender”).

 

RECITALS

 

A.            The Borrower, the financial institutions party thereto
from time to time (the “Lenders”), the Issuing Lender and the
Administrative Agent, are parties to that certain Fourth Amended and Restated
Credit Agreement dated as of January 31, 2007, as amended by the Amendment
No. 1 dated as of July 11, 2007, the Amendment No. 2 dated as of
December 10, 2007, the Amendment No. 3 and Agreement dated as of May 8,
2008, and the Consent and Amendment No. 4 dated as of March 16, 2009
(as so amended and as the same may be further amended, modified or supplemented
from time to time, the “Credit Agreement”).

 

B.            Subject to the terms and conditions of this Amendment,
the Borrower, the Administrative Agent, the Issuing Lender and the Lenders wish
to make certain amendments to the Credit Agreement.

 

THEREFORE, the Borrower, the
Guarantors, the Administrative Agent, the Issuing Lender and the Lenders hereby
agree as follows:

 

Section 1.              Defined Terms.  As used in this Amendment, each of the terms
defined in the opening paragraph and the Recitals above shall have the meanings
assigned to such terms therein.  Each
term defined in the Credit Agreement and used herein without definition shall
have the meaning assigned to such term in the Credit Agreement, unless
expressly provided to the contrary herein.

 

Section 2.              Other
Definitional Provisions. Article, Section, Schedule,
and Exhibit references are to Articles and Sections of and Schedules and
Exhibits to this Amendment, unless otherwise specified.  All references to instruments, documents,
contracts, and agreements are references to such instruments, documents,
contracts, and agreements as the same may be amended, supplemented, and
otherwise modified from time to time, unless otherwise specified.  The words “hereof”, “herein”, and “hereunder”
and words of similar import when used in this Amendment shall refer to this
Amendment as a whole and not to any particular provision of this
Amendment.  The term “including” means “including,
without limitation”.  Paragraph headings
have been inserted in this Amendment as a matter of convenience for reference
only and it is agreed that such paragraph headings are not a part of this
Amendment and shall not be used in the interpretation of any provision of this
Amendment.

 

Section 3.              Amendments to the Credit
Agreement.

 

(a)           Sections 5.06(a)  and 5.06(b) of
the Credit Agreement are hereby deleted in their entirety and replaced with the
following:

 

(a)          Annual Financials. 
As soon as available and in any event not later than 90 days after
the end of each fiscal year of the Borrower and its consolidated Subsidiaries,
commencing with the fiscal year ending December 31, 2006: (i) a copy
of the annual audit report for such year for the Borrower and such consolidated
Subsidiaries, including therein the Borrower’s and such consolidated
Subsidiaries’ balance sheets as of the end of such fiscal year and the Borrower’s
and such consolidated Subsidiaries’ statements of income, cash flows, and
retained earnings, in each case 

 

 

certified by independent certified public accountants of national
standing reasonably acceptable to the Administrative Agent and including any
management letters delivered by such accountants to the Borrower or any
Subsidiary in connection with such audit; and (ii) if requested by the
Administrative Agent, a copy of the unaudited annual consolidating financial
statements of each of its Subsidiaries, if any, including therein such
Subsidiary’s balance sheet and statements of income, cash flows, and retained
earnings for such fiscal year;

 

(b)          Quarterly Financials.  As soon as available and in any event not
later than 45 days after the end of each of the first three fiscal quarters of
each fiscal year of the Borrower and its consolidated Subsidiaries, commencing
with the fiscal quarter ending March 31, 2007, the unaudited balance sheet
and the unaudited statements of income, cash flows, and retained earnings of
each such Person for the period commencing at the end of the previous year and
ending with the end of such fiscal quarter, all in reasonable detail and duly
certified with respect to such consolidated statements (subject to the absence
of footnotes  and to year-end audit
adjustments) by a Responsible Officer of the Borrower as having been prepared
in accordance with GAAP;

 

(b)           Section 7.01 of the Credit
Agreement (Events of Default) is hereby amended by
deleting clause (o) in its entirety and replacing it with the following:

 

(o)          [Reserved];

 

Section 4.              Borrower Representations and Warranties.  The Borrower represents and warrants that: (a) after
giving effect to this Amendment, the representations and warranties contained
in the Credit Agreement, and the representations and warranties contained in
the other Loan Documents, are true and correct in all material respects on and
as of the date of this Amendment as if made on as and as of such date, except
to the extent that any such representation or warranty expressly relates solely
to an earlier date, in which case such representation or warranty is true and
correct in all material respects as of such earlier date; (b) after giving
effect to this Amendment, no Default or Event of Default has occurred and is
continuing; (c) the execution, delivery and performance of this Amendment
are within the corporate power and authority of the Borrower and have been duly
authorized by appropriate corporate and governing action and proceedings; (d) this
Amendment constitutes the legal, valid, and binding obligation of the Borrower
enforceable in accordance with its terms, except as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting
the rights of creditors generally and general principles of equity; (e) there
are no governmental or other third party consents, licenses and approvals
required in connection with the execution, delivery, performance, validity and
enforceability of this Amendment; and (f) the Liens under the Security
Documents are valid and subsisting and secure the Borrower’s obligations under
the Loan Documents.

 

Section 5.              Reaffirmation of Guaranty.  Each Guarantor hereby ratifies, confirms, and
acknowledges that its obligations under the Guaranty Agreement are in full
force and effect and that each Guarantor continues to unconditionally and
irrevocably, jointly and severally, guarantee the full and punctual payment,
when due, whether at stated maturity or earlier by acceleration or otherwise,
all of the Obligations (subject to the terms of the Guaranty Agreement), as
such Obligations may have been amended by this Amendment.  Each Guarantor hereby acknowledges that its
execution and delivery of this Amendment does not indicate or establish an approval
or consent requirement by the Guarantors under the Guaranty Agreement in
connection with the execution and delivery of amendments, modifications or
waivers  to the Credit Agreement, the
Notes or any of the other Loan Documents.

 

2

 

Section 6.              Conditions to Effectiveness.  Subject to Section 7 below,
this Amendment shall become effective as of the Effective Date and shall
be enforceable against the parties hereto upon the occurrence of the following conditions
precedent:

 

(a)           The Administrative Agent shall have
received multiple original counterparts, as requested by the Administrative
Agent, of this Amendment duly and validly executed and delivered by duly
authorized officers of the Borrower, the Administrative Agent and the Lenders.

 

(b)           After giving effect to this
Amendment, none of the Hedge Contracts to which any Loan Party is a party shall
be in default, and no such Hedge Contract shall have been terminated, novated,
unwound or otherwise cease to be in full force and effect.

 

(c)           No Default or
Event of Default shall have occurred and be continuing as of the Effective
Date.

 

(d)           The representations and warranties in
this Amendment shall be true and correct in all material respects.

 

(e)           The Borrower shall have paid all
costs and expenses for which the Borrower has received invoices on or prior to
the date hereof and which are payable pursuant to Section 9.03 of the
Credit Agreement.

 

Section 7.              Effective Date.  Notwithstanding anything herein to the
contrary, the parties hereto agree that upon the satisfaction of the conditions
precedent set forth in Section 6 above, the amendments to Section 5.06
of the Credit Agreement provided herein shall become effective as of March 31,
2009.  Furthermore, any Defaults that
might have occurred as a result of the Borrower’s failure to provide the
auditor’s certificate as required under Section 5.06(a)(i)(B) of the
Credit Agreement are hereby waived.  Such
waiver is limited to the extent described herein and shall not be construed to
be a consent to or permanent waiver of any provision in Section 5.06 of
the Credit Agreement, or any other terms, provisions, covenants, warranties, or
agreements contained in the Credit Agreement or in any of the other Loan
Documents.  The Lenders reserve the right
to exercise any rights and remedies available to them in connection with any
other present or future defaults with respect to the Credit Agreement or any
other provision of any Loan Document.

 

Section 8.              Acknowledgments and Agreements.

 

(a)           The Borrower acknowledges that on the
date hereof all Obligations are payable without defense, offset, counterclaim
or recoupment.

 

(b)           The Lenders hereby expressly reserve
all of their rights, remedies, and claims under the Loan Documents.

 

(c)           Each of the Borrower, the
Administrative Agent, the Issuing Lender and the Lenders does hereby adopt,
ratify, and confirm the Credit Agreement and acknowledges and agrees that the
Credit Agreement is and remains in full force and effect, and the Borrower
acknowledges and agrees that its liabilities and obligations under the Credit
Agreement are not impaired in any respect by this Amendment.

 

(d)           From and after the date hereof, all
references to the Credit Agreement and the Loan Documents shall mean such
Credit Agreement and such Loan Documents as modified by this Amendment.

 

3

 

(e)           This Amendment is a Loan Document for
the purposes of the provisions of the other Loan Documents.  Without limiting the foregoing, any breach of
representations, warranties, and covenants under this Amendment shall be a
Default or Event of Default, as applicable, under the Credit Agreement.

 

(f)            EACH OF THE BORROWER AND ITS
SUBSIDIARIES AND THE GUARANTORS (FOR THEMSELVES AND THEIR RESPECTIVE
SUCCESSORS, AGENTS, ASSIGNS, TRANSFEREES, OFFICERS, DIRECTORS, EMPLOYEES,
SHAREHOLDERS, ATTORNEYS AND AGENTS) HEREBY RELEASES ANY AND ALL CLAIMS, CAUSES
OF ACTION OR OTHER DISPUTES IT MAY HAVE AGAINST THE ADMINISTRATIVE AGENT,
ANY OF THE LENDERS, LEGAL COUNSEL TO THE ADMINISTRATIVE AGENT OR ANY OF THE
LENDERS, CONSULTANTS HIRED BY ANY OF THE FOREGOING, OR ANY OF THEIR RESPECTIVE
AFFILIATES, SUBSIDIARIES, SHAREHOLDERS, AGENTS, DIRECTORS, OFFICERS, EMPLOYEES,
REPRESENTATIVES, SUCCESSORS OR ASSIGNS OF ANY KIND OR NATURE ARISING OUT OF,
RELATED TO, OR IN ANY WAY CONNECTED WITH, THE CREDIT AGREEMENT OR THE LOAN
DOCUMENTS, IN EACH CASE WHICH MAY HAVE ARISEN ON OR BEFORE THE DATE OF
THIS AMENDMENT.  EACH OF THE BORROWER AND
ITS SUBSIDIARIES HEREBY ACKNOWLEDGES THAT IT HAS READ THIS AMENDMENT AND HAS
CONFERRED WITH ITS COUNSEL AND ADVISORS REGARDING ITS CONTENT, INCLUDING THIS
PARAGRAPH 8(f), AND IS FREELY AND VOLUNTARILY ENTERING INTO THIS AMENDMENT, AND
HEREBY AGREES TO WAIVE ANY CLAIM THAT THE TERMS OF THIS AMENDMENT (INCLUDING,
WITHOUT LIMITATION, THE RELEASES CONTAINED HEREIN) ARE INVALID OR OTHERWISE
UNENFORCEABLE.

 

Section 9.              Counterparts.  This Amendment may be signed in any number of
counterparts, each of which shall be an original and all of which, taken
together, constitute a single instrument. 
This Amendment may be executed by facsimile signature and all such
signatures shall be effective as originals.

 

Section 10.            Successors and Assigns.  This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns permitted pursuant to the Credit Agreement.

 

Section 11.            Invalidity.  In the event that any one or more of the
provisions contained in this Amendment shall for any reason be held invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Amendment.

 

Section 12.            Governing Law.  This Amendment shall be deemed to be a
contract made under and shall be governed by, and construed and enforced in
accordance with, the laws of the State of Texas.

 

Section 13.            Entire Agreement.  This Amendment, the Credit
Agreement, the Notes and the other Loan Documents constitute the entire
understanding among the parties hereto with respect to the subject matter
hereof and supersede any prior agreements, written or oral, with respect
thereto.

 

THERE ARE NO UNWRITTEN ORAL
AGREEMENTS AMONG THE PARTIES.

 

[Signatures
begin on the next page]

 

4

 

EXECUTED effective as of the
date first above written.

 

	
  BORROWER:

  	
  EDGE PETROLEUM CORPORATION,

  
	
   

  	
  a Delaware Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary
  L. Pittman

  
	
   

  	
  Name:

  	
  Gary
  L. Pittman

  
	
   

  	
  Title:

  	
  EVP
  & CFO

  

 

 

	
  GUARANTORS:

  	
  EDGE PETROLEUM EXPLORATION COMPANY

  
	
   

  	
   

  
	
   

  	
  EDGE PETROLEUM OPERATING  COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
  EDGE PETROLEUM PRODUCTION
  COMPANY

  
	
   

  	
   

  
	
   

  	
  MILLER EXPLORATION COMPANY

  
	
   

  	
   

  
	
   

  	
  MILLER OIL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary
  L. Pittman

  
	
   

  	
  Name:

  	
  Gary
  L. Pittman

  
	
   

  	
  Title:

  	
  EVP
  & CFO

  

 

 

	
  ADMINISTRATIVE
  AGENT/ISSUING LENDER/LENDER:

  	
  UNION BANK OF CALIFORNIA, N.A.,

  
	
   

  	
  as Administrative Agent,
  Issuing Lender and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  M. Duncan McDuffie

  
	
   

  	
  Name:

  	
  M.
  Duncan McDuffie

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

 

	
  LENDERS:

  	
  JPMORGAN CHASE BANK, N.A., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Randall B. Durant

  
	
   

  	
  Name:

  	
  Randall
  B. Durant

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

 

	
   

  	
  SUNTRUST BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Katherine Bass

  
	
   

  	
  Name:

  	
  Katherine
  Bass

  
	
   

  	
  Title:

  	
  First
  Vice President

  

 

 

	
   

  	
  MIZUHO CORPORATE BANK, LTD., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Leon Mo

  
	
   

  	
  Name:

  	
  Leon
  Mo

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

 

	
   

  	
  BNP PARIBAS, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David Dodd

  
	
   

  	
  Name:

  	
  David
  Dodd

  
	
   

  	
  Title:

  	
  Managing
  Director

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Betsy Jocher

  
	
   

  	
  Name:

  	
  Betsy
  Jocher

  
	
   

  	
  Title:

  	
  Director

  

 

 

	
   

  	
  FORTIS CAPITAL CORP., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  THE FROST NATIONAL BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  COMPASS BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Dorothy Marchand

  
	
   

  	
  Name:

  	
  Dorothy
  Marchand

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION,
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Justin M. Alexander

  
	
   

  	
  Name:

  	
  Justin
  M. Alexander

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

 

	
   

  	
  BANK OF SCOTLAND  plc, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Julia R. Franklin

  
	
   

  	
  Name:

  	
  Julia
  R. Franklin

  
	
   

  	
  Title:

  	
  Assistant
  Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}]]