Document:

Exhibit 10.11

 

AGREEMENT

 

This
Agreement, dated                         ,
200     (the “Effective Date”),
is made by and between Charles River Laboratories, Inc., a Delaware
corporation (the “Company”) and                                     (the
“Executive”).

 

WHEREAS, the
Company considers it essential to the best interests of its shareholders to
foster the continuous employment of key management personnel;

 

WHEREAS, the
Board of Directors of the Company (the “Board”)
recognizes that, as is the case with many publicly-held corporations, the
possibility of a Change in Control (as defined below) exists and that such
possibility, and the uncertainty and questions which it may raise among
management, may result in the departure or distraction of management personnel
to the detriment of the Company and its shareholders;

 

WHEREAS, the
Board has determined that appropriate steps should be taken to reinforce and
encourage the continued attention and dedication of members of the Company’s
management, including the Executive, to their assigned duties without
distraction in the face of potentially disturbing circumstances arising from
the possibility of a Change in Control; and

 

NOW THEREFORE,
in consideration of the premises and the mutual covenants herein contained, the
Company and the Executive hereby agree as follows:

 

1.                                       Defined
Terms. Capitalized terms, not elsewhere defined in this Agreement, are
defined in Section 16 hereof.

 

2.                                       Terms
of Agreement. (a) This Agreement shall commence as of the Effective
Date and shall continue in effect while the Executive is employed by the
Company for a period of three years; provided,
however, that commencing on the third anniversary of the Effective Date and on
each anniversary thereafter, the term of this Agreement shall automatically be
extended for one additional year unless, not later than 90-days prior to any
such anniversary date either party shall have given notice that it does not
wish to extend this Agreement. Notwithstanding the foregoing, if a Change in
Control shall have occurred during the original or extended term of this
Agreement, (i) this Agreement shall continue in effect for a period of 36
months beyond the month in which such Change in Control occurred and (ii) any
notice of nonrenewal given by the Company during the twelve months prior to
such Change in Control shall be deemed revoked and this Agreement shall be
reinstated as if never terminated in accordance with such notice.

 

(b)                                 It is intended, and
the parties hereto agree, that (i) the benefit, if any, payable to the
Executive under any other severance or termination pay plan, arrangement or
agreement of or with the Company shall be reduced by the amount of any payment
actually provided under Section 6.1 hereof, (ii) any option to
acquire shares of the Company’s common stock awarded to the Executive under any
stock option or other long-term incentive plan of the Company shall become
fully exercisable upon the

 

 

occurrence of a Change in Control during the term of the Agreement, and
(iii) and restrictions on any shares of restricted stock held by the
Executive shall fully lapse upon the occurrence of a Change in Control during
the term of this Agreement, provided that nothing herein shall otherwise affect
or modify the terms of any such option or restricted stock or the Executive’s
right or obligations with respect thereof.

 

3.                                       Company’s
Covenants Summarized. In order to induce the Executive to remain in the
employ of the Company, and in consideration of the Executive’s covenant set
forth in Section 4 hereof, the Company agrees to compensate the Executive
as set forth herein, upon the terms and under the conditions described herein,
in the event the Executive’s employment with the Company is terminated under
the circumstances described below following a Change in Control and during the
term of this Agreement. No amount or benefit shall be payable under this
Agreement unless there shall have been (or under the terms hereof, there shall
be deemed to have been) a termination of the Executive’s employment with the Company
following a Change in Control.

 

4.                                       The
Executive’s Covenants. The Executive agrees that, subject to the terms and
conditions of this Agreement, in the event of a Change in Control during the
term of this Agreement, the Executive will remain in the employ of the Company
until the earliest of (a) a date which is six (6) months after the
date of such Change in Control, (b) the date, after such Change in
Control, of termination by the Executive of the Executive’s employment for Good
Reason, or termination of Executive’s employment by reason of Death, Disability
or Retirement, or (c) the termination by the Company, after such Change in
Control, of the Executive’s employment for any reason.

 

5.                                       Compensation
Other Than Severance Payment.

 

5.1.                              Disability. Following
a Change in Control during the term of this Agreement, during any period that
the Executive fails to perform the Executive’s full-time duties with the
Company as a result of incapacity due to physical or mental illness, the
Company shall continue to pay the Executive’s full salary to the Executive at
the rate in effect at the commencement of any such period, together with all
compensation and benefits payable to the Executive under the terms of any
compensation or benefit plan, program or arrangement maintained by the Company
during such period, until the Executive’s employment is terminated by the
Company for Disability.

 

5.2.                              Salary Continuation.
If the Executive’s employment shall be terminated for any reason following a
Change in Control and during the term of this Agreement, the Company shall pay
the Executive’s full salary to the Executive through the Date of Termination at
the rate in effect at the time the Notice of Termination is given, together
with all compensation and benefits payable to the Executive through the Date of
Termination under the terms of any compensation or benefit plan, program or
arrangement maintained by the Company during such period.

 

5.3.                              Other Post-Termination
Compensation. If the Executive’s employment shall be terminated for any
reason following a Change in Control and during the term of this Agreement, the
Company shall, except as provided in Section 2 above,

 

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pay the Executive’s normal post-termination compensation and benefits
to the Executive as such payments become due. Such post-termination
compensation and benefits shall be determined under, and paid in accordance
with, the Company’s retirement, insurance, deferred compensation and other
compensation or benefit plans, programs, agreements or arrangements.

 

6.                                       Company
Obligations upon Termination. If, during the term of this Agreement and on
or before the first anniversary of a Change in Control, (i) the Company
shall terminate the Executive’s employment other than for Cause, Death or
Disability or (ii) the Executive shall terminate her employment for Good
Reason, then the Company shall pay to the Executive the payments set forth in
Sections 6.1, 6.2, if applicable, 6.3 and 6.4 hereof (collectively, the “Severance Payments”) in addition to the payments and
benefits described in Sections 5 and 6.6 hereof. The Executive’s employment
shall be deemed to have been terminated following a Change in Control by the
Company without Cause or by the Executive with Good Reason if the Executive’s
employment is terminated without Cause prior to a Change in Control at the
direction of a Person who has entered into or has proposed to enter into an
agreement with the Company the consummation of which will constitute a Change
in Control, or if the Executive terminates her employment with Good Reason
prior to a Change in Control if the circumstances or event which constitutes
Good Reason occurs at the direction of such Persons; provided
in either case that a Change in Control involving such other Person is
consummated within 12 months after any such direction.

 

6.1.                              Severance Payment.
In lieu of any further salary payments to the Executive for periods subsequent
to the date of Termination, the Company shall pay the Executive a lump sum
severance payment, in cash, equal to          
times (i.e.,          of) the sum
of the Executive’s then base salary plus the target bonus contained in the
Executive Bonus Plan for the fiscal year in which the Date of Termination
occurs.

 

6.2.                              Golden Parachute
Excise Tax. The Company intends that the Executive shall generally not bear
the economic effect of the excise tax imposed by Section 4999 of the
Internal Revenue Code on so-called golden parachute payments. This provision
shall be implemented in accordance with the provisions of Annex 1. However, if
a small (up to 15%) reduction in the Executive’s entitlements would greatly
minimize the Company’s costs in providing the excise tax protection, the
Company will reduce the amounts paid to the Executive hereunder to that small
extent.

 

6.3.                              Retirement Plan
Payments. In the event the Executive was a participant in the Charles River
Laboratories, Inc. Pension Plan (or any successor plan thereto) (the “Pension Plan”) on or prior to the Date of Termination, the
Company shall pay to the Executive a separate lump-sum supplemental retirement
benefit (the “Supplemental Retirement Amount”)
equal to the difference between (1) the actuarial equivalent of the
benefit payable under the Pension Plan which the Executive would receive if the
Executive’s employment continued for the       
years following the Date of Termination and if her compensation during
such number of years increased at a rate of 4% per year from the level in
effect on the Date of Termination, and (2) the actuarial equivalent of the
Executive’s actual benefit (paid or payable), if any, under the Pension

 

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Plan. The amounts to be paid to the Executive under this Section shall
be paid out of the Pension Plan trust, to the extent permissible under
applicable law. For purposes of calculating the actuarial equivalents referred
to in (1) and (2) above, the Company shall use the actuarial
assumptions utilized with respect to the Pension Plan during the 90-day period
immediately preceding the Change in Control Date and shall assume that all
accrued benefits are fully vested and that benefit accrual formulas in effect
during any years after the Date of Termination are no less advantageous to the
Executive than those in effect during the 90-day period immediately preceding
the Change in Control Date.

 

6.4.                              ESLIRP Payment. In
the event that (x) the Executive is a participant in the Charles River
Laboratories, Inc. Executive Supplemental Life Insurance Retirement Plan (the
“ESLIRP”) on or prior to the Date of
Termination, and (y) the ESLIRP shall not then have been replaced by the
Charles River Laboratories Deferred Compensation Plan (the “DCP”), the Company shall pay to the Executive a separate
lump-sum supplemental retirement benefit (the “ESLIRP
Payment”) in discharge of the Company’s obligations under the ESLIRP
equal to the actuarial equivalent of the Executive’s benefit accrued through
the Date of Termination under the ESLIRP. The ESLIRP Payment shall be
calculated (i) utilizing the actuarial assumptions specified by Section 417(e)(3)(A) of
the Internal Revenue Code, and in the case of the interest rate specified under
subparagraph (ii)(II) of such section, using such rate established for the
month of November of the year preceding the year in which the payment
occurs; (ii) assuming that the Executive’s employment continued for        years following the Date of
Termination, and (iii) assuming that the Executive’s compensation during
such number of years referred to in (ii) increased at a rate of 4% per
year from the level in effect on the Date of Termination. Notwithstanding the
foregoing, however, to the extent the ESLIRP Payment is funded through a trust
of which the Executive is a beneficiary, such amount to the extent so funded
shall be paid from such trust. In the event that the provisions of this subsection are
in conflict with provisions of the ESLIRP, the provisions of this Agreement
shall prevail if the provisions of this Agreement are more favorable to the Executive.
No payment shall be made under this Section 6.4 if the DCP shall have been
adopted and implemented prior to the Change in Control.

 

6.5.                              Timing of Payment.
The payment provided for in Section 6.1 hereof shall be made not later
than the fifth day following the Date of Termination, provided, however, that
if the amount of such payment, and the limitation on such payment set forth in Section 6.2
hereof, cannot be finally determined on or before such day, the Company shall
pay to the Executive on such day an estimate, as determined in good faith by
the Company, of the minimum amount of such payment to which the Executive is
clearly entitled and shall pay the remainder of such payment (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code)
as soon as the amount thereof can be determined but in no event later than the
30th day after the Date of Termination. In the event that the amount
of the estimated payment exceeds the amount subsequently determined to have
been due, such excess shall be paid back to the Company within five business
days after demand by the Company and such payment shall not be considered a
loan, therefore no interest shall be due or payable. At the time that payments
are made under this Section 6 the Company shall provide the Executive with
a written statement setting forth the manner in which such payments were
calculated and the basis for such

 

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calculation including, without limitation, any opinions or other advice
the Company has received from outside counsel, auditors or consultants (and any
such opinions or advice which are in writing shall be attached to the
statement).

 

6.6.                              Payment of Legal Fees
and Expense. The Company shall pay to the Executive all legal fees and
expenses incurred by the Executive as a result of or in connection with a
termination of employment (other than any such termination by the Company for
Cause) following a Change in Control and during the term of the Agreement
(including all such fees and expenses, if any, incurred in good faith in
disputing any such termination or in seeking in good faith to obtain or enforce
any benefit or right provided by the Agreement or in connection with any tax
audit or proceeding to the extent attributable to the application of Section 4999
of the Code to any payment or benefit provided hereunder). Such payments shall
be made within five business days after delivery of the Executive’s written
request for payment accompanied with such evidence of fees and expenses
incurred as the Company reasonably may require.

 

6.7.                              Continuation of
Benefits. If the Executive’s employment terminates as provided in Section 6,
(a) the Company shall, for         
years following the Date of Termination, or such longer period as any
plan, program, practice or policy may provide, continue benefits to the
Executive and/or the Executive’s family at least equal to those which would
have been provided had the Executive’s employment not been terminated, in
accordance with the plans, programs, practices and policies in effect and
applicable generally to other peer executives and their families during the
90-day period immediately preceding the Effective Date that provided for group
health, dental and life insurance and other welfare-type plans, or if more
favorable to the Executive, in accordance with such plan, program, practice or
policy as in effect generally at any time thereafter with respect to other peer
executives of the Company and its affiliated companies; provided,
however, that if the Executive becomes employed by another employer and is
eligible to receive medical or other welfare benefits under another employer
provided plan, the medical and other welfare benefits described herein shall be
secondary to those provided under such other plan during such applicable period
of eligibility. For purposes of determining eligibility of the Executive for
retiree benefits pursuant to such plans, practices, programs and policies, the
Executive shall be considered to have remained employed until the end of
the        year period following the Date
of Termination and to have retired on the last day of such period.

 

(b)                 Executive
shall be permitted to purchase her then currently Company-leased vehicle in
accordance with the most attractive terms available under such lease.

 

(c)                  The
Company shall provide (or reimburse) Executive with 26 weeks of fully paid
outplacement services, up to a maximum of $                .

 

7.                                       Termination
Procedures and Compensation During Dispute.

 

7.1.                              Notice of Termination.
After a Change in Control and during the term of this Agreement, any purported
termination of the Executive’s employment (other than by reason of Death) shall
be communicated by written Notice of Termination from one

 

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party hereto to the other party in accordance with Section 10
hereof. For purposes of this Agreement, a “Notice of Termination”
shall mean a notice which shall indicate the specific termination provision in
this Agreement relied upon and shall set forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated. Further, a Notice of Termination
for Cause is required to include a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire Board at a
meeting of the Board which was called and held for the purpose of considering
such termination (after reasonable notice to the Executive and an opportunity
for the Executive, together with her counsel, to be heard before the Board)
finding that, in the good faith opinion of the Board, the Executive was guilty
of conduct set forth in the definition of Cause herein, and specifying the
particulars thereof in detail.

 

7.2.                              Date of Termination.
“Date of Termination” with respect to
any termination of the Executive’s employment after a Change in Control and
during the term of this Agreement, shall mean (a) if the Executive’s
employment is terminated for Disability, 30 days after Notice of Termination is
given (provided that the Executive shall not have returned to the full-time
performance of the Executive’s duties during such 30-day period), and (b) if
the Executive’s employment is terminated for any other reason, the date
specified in the Notice of Termination (which, in the case of termination by
the Company, shall not be less than 30 days (except in the case of a
termination for Cause), and, in the case of a termination by the Executive,
shall not be less than 15 days nor more than 60 days, respectively, from the
date of such Notice of Termination is given).

 

7.3.                              Dispute Concerning
Termination. Notwithstanding any provision of Section 7.2 hereof to
the contrary, if within 15 days after Notice of Termination is received, or, if
later, prior to the Date of Termination (as determined without regard to this Section 7.3),
the party receiving such Notice of Termination notifies the other party in
writing that a dispute exists concerning the termination, the Date of Termination
shall be the date on which the dispute is finally resolved, either by mutual
written agreement of the parties or by a final judgment, order or decree of a
court of competent jurisdiction (which is not appealable or with respect to
which the time for appeal therefrom has expired and no appeal has been
perfected); provided that the Date of Termination shall be extended by a notice
of dispute only if such notice is given in good faith and the party giving such
notice pursues the resolution of such dispute with reasonable diligence. For
the purposes of the preceding sentence, a dispute concerning termination shall
be deemed finally resolved if, within 30 days of an arbitration award
concerning such dispute, neither party commences an action in any court seeking
the modification of or other relief from such award.

 

7.4.                              Compensation During
Dispute. If a proposed termination occurs following a Change in Control and
during the term of this Agreement, and such termination is disputed in
accordance with Section 7.3 hereof, the Company shall continue to pay the
Executive the full compensation in effect when the notice giving rise to the
dispute was given (including, but not limited to, salary) and continue the
Executive as a participant in all compensation, benefit and insurance plans in
which the Executive was participating when the notice giving rise to the
dispute was given, until the dispute is

 

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finally resolved in accordance with Section 7.3 hereof. Amounts
paid under this Section 7.4 are in addition to all other amounts due under
this Agreement (other than those due under Section 5.2 hereof).

 

8.                                       No
Mitigation; Set-Off. The Company agrees that, if the Executive’s employment
by the Company is terminated during the term of this Agreement, the Executive
is not required to seek other employment or to attempt in any way to reduce any
amounts payable to the Executive by the Company pursuant to this Agreement. Further,
except as provided in Section 6.7, the amount of any payment or benefit
provided for in this Agreement shall not be reduced by any compensation earned
by the Executive as the result of employment by another employer, by retirement
benefits, by offset against any amount claimed to be owed by the Executive to
the Company or otherwise. The Company’s obligation to make the payments
provided in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against
the Executive.

 

9.                                       Successors.
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 to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place, unless such
obligations are binding upon such successor by operation of law. Failure of the
Company to obtain such assumption and agreement prior to the effectiveness of
any such succession shall be a breach of this Agreement and shall entitle the
Executive to compensation from the Company in the same amount and on the same
terms as the Executive would be entitled to hereunder if the Executive were to
terminate the Executive’s employment for Good Reason after a Change in Control,
except that for purposes of implementing the foregoing the date on which any
such succession becomes effective shall be deemed the Date of Termination.

 

10.                                 Notices.
For the purpose of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have
been duly given when delivered or mailed by the US registered mail, return
receipt requested, postage prepaid, addressed to the respective addresses set
forth below, or to such other address as either party may have furnished
to the other in writing in accordance herewith, except that notice of change of
address shall be effective only upon actual receipt:

 

To the Company:

 

Charles River
Laboratories, Inc.

251 Ballardvale St.

Wilmington, MA 01887

Attention: Chief Executive Officer

Copy to: General Counsel

 

7

 

To the
Executive:

 

At the address
then appearing 

on the employment records

of the Company.

 

11.                                 Miscellaneous.
No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing and
signed by the Executive and such officer of the Company as may be
specifically designated by the Board. No waiver by either party hereto at any
time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or any prior or subsequent time. No agreements or representations,
oral or otherwise, express or implied, with respect to the subject matter
hereof have been made by either party which are not expressly set forth in this
Agreement. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the Commonwealth of Massachusetts.
Any payments provided for hereunder shall be paid net of any applicable
withholding required under federal, state or local law and any additional
withholding to which the Executive has agreed. The obligations of the Company
and the Executive under Sections 5, 6 and 7 shall survive the expiration of
this Agreement.

 

12.                                 Validity.
The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

 

13.                                 Counterparts.
This Agreement may be executed in several counterparts, each of which
shall be deemed to be an original but all of which together will constitute one
and the same instrument.

 

14.                                 Arbitration.
Any dispute or controversy arising under or in connection with this Agreement
shall be settled exclusively by arbitration conducted before a single
arbitrator in Boston, Massachusetts in accordance with the commercial rules of
the American Arbitration Association (“AAA”) then in
effect. Unless a mutually acceptable arbitrator shall have been selected by the
parties within 30 days of the initiation of arbitration proceedings, then upon
application of either party to the Boston office of the AAA, the AAA shall
designate such arbitrator. Judgment may be entered on the arbitrator’s
award in any court having jurisdiction, provided, however, that the Executive
shall be entitled to seek specific performance of her right to be paid until
the Date of Termination during the pendency of any dispute or controversy
arising under or in connection with this Agreement.

 

15.                                 Confidentiality.
The Executive shall keep secret and confidential and shall not disclose to any
third party in any fashion or for any purpose whatsoever, any information
regarding this Agreement which is (i) not available to the general public,
and/or (ii) not generally known outside the Company. Notwithstanding the
foregoing

 

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provisions of
this Section 15, the Executive may discuss this Agreement with the
members of her immediate family and with her personal legal and tax advisors,
provided that prior to disclosing any term or condition of this Agreement to
any person, the Executive shall obtain from such person for the benefit of the
Company his or her agreement to observe the foregoing confidentiality
provisions.

 

16.                                 Definitions.
For purposes of this Agreement, the following shall have the meanings indicated
below:

 

16.1.                        “Beneficial
Owner” and “Beneficial Ownership”
shall have the meaning defined in, and shall be determined pursuant to, Rule l3d-3
under the Securities Exchange Act of 1934, as amended.

 

16.2.                        “Board”
shall mean the Board of Directors of the Company.

 

16.3.                        “Cause”
for termination by the Company of the Executive’s employment, after any Change
in Control, shall mean (a) the willful and continued failure by the
Executive to perform the Executive’s duties with the Company, (b) a
substantial and not de minimis violation of the Company’s Code of Business Conduct
and Ethics (and any successor policy), as the same are in effect from time to
time, (c) the Executive’s conviction of a felony, or (d) engaging in
conduct that constitutes a violation of Section 15 hereof.

 

16.4.                        “Change in
Control” means any one of the following: (i) the closing of the
sale of all or substantially all of the Company’s assets as an entirety to any
person or related group of persons; (ii) the merger or consolidation of
the Company with or into another corporation or the merger or consolidation of
another corporation with or into the Company or a subsidiary of the Company, in
either case with the effect that immediately after such transaction the
outstanding voting securities of the Company immediately prior to such
transaction represent less than a majority in interest of the total voting
power of the outstanding voting securities of the entity surviving such merger
or consolidation; or (iii) the closing of a transaction pursuant to which
Beneficial Ownership of more than 50% of the Company’s outstanding Common Stock
(assuming the issuance of Common Stock upon conversion or exercise of all then
exercisable conversion or purchase rights of holders of outstanding convertible
securities, options, warrants, exchange rights and other rights to acquire
Common Stock) is transferred to a single person or entity, or a “group” (within
the meaning of Rule l3d-5(b)(l) under the Securities Exchange Act of 1934)
of persons or entities, in a single transaction or a series or related
transactions. It shall also be treated as a Change in Control hereunder if any
of the events described in clauses (i), (ii) or (iii) occur to
Charles River Laboratories International, Inc., or any other company
directly or indirectly controlling the Company at the time of any such
transaction.

 

16.5.                        “Change in
Control Date.”  The effective
date of the Change in Control.

 

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16.6.                        “Code”
shall mean the Internal Revenue Code of 1986, as amended. All references to the
Code shall be deemed also to refer to any successor provisions of such
sections.

 

16.7.                        “Company”
shall mean Charles River Laboratories, Inc. and any successor to its
business and/or assets which assumes and agrees to perform this Agreement
by operation of law, or otherwise (except in determining, under Section 16.4
hereof, whether or not a Change in Control of the Company has occurred in
connection with such succession).

 

16.8.                        “Date of
Termination” shall have the meaning stated in Sections 7.2 and 7.3
hereof.

 

16.9.                        “Disability”
shall be deemed the reason for termination by the Company of the Executive’s
employment if, as a result of the Executive’s incapacity due to physical or
mental illness, the Executive shall have been absent from the full-time
performance of the Executive’s duties with the Company for a period of [six
(6)] consecutive months, the Company shall have given the Executive a Notice of
Termination for Disability, and within 30 days after such Notice of Termination
is given, the Executive shall not have returned to the full-time performance of
her duties.

 

16.10.                  “Executive”
shall mean the individual named in the first paragraph of this Agreement.

 

16.11.                  “Good Reason”
for termination by the Executive of the Executive’s employment shall mean the
occurrence after a Change in Control (without the Executive’s express written
consent) of any one of the following acts by the Company, or failures by the
Company to act, unless in the case of any act or failure to act described in
paragraph (i), (iv), (v), (vi) or (vii) below, such act or failure to
act is corrected prior to the Date of Termination specified in the Notice of
Termination given in respect thereof:

 

(i)                                     the
assignment to the Executive of any duties inconsistent with the Executive’s
position and responsibilities as in effect immediately prior to the Change in
Control;

 

(ii)                                  a
reduction by the Company in the Executive’s annual base salary as in effect on
the date hereof or as the same may be increased from time to time except
for across-the-board salary reductions similarly affecting all senior
executives of the Company and all senior executives of any Person in control of
the Company;

 

(iii)                               the
failure by the Company to pay to the Executive any portion of the Executive’s
current compensation except pursuant to an across- the-board salary reduction
similarly affecting all senior executives of the Company and all senior
executives of any Person in control of the Company, or to pay to the Executive
any portion of an installment of deferred compensation under any deferred

 

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compensation program of the Company, within 14 days of the date such
compensation is due;

 

(iv)                              the
failure by the Company to continue in effect any compensation plan in which the
Executive participates immediately prior to the Change in Control which is
material to the Executive’s total compensation, unless an equitable arrangement
(embodied in an ongoing substitute or alternative plan) has been made with
respect to such plan, or the failure by the Company to continue the Executive’s
participation therein (or in a substitute or alternative plan) on a basis not
materially less favorable, both in terms of the amount of benefits provided and
the level of the Executive’s participation relative to other participants, as
existed at the time of the Change in Control;

 

(v)                                 the
failure by the Company to continue to provide the Executive with benefits
substantially similar to those enjoyed by the Executive under any of the
Company’s pension, life insurance, medical, health and accident, or disability
plans in which the Executive was participating at the time of the Change in
Control, the taking of any action by the Company which would directly or
indirectly materially reduce any of such benefits or deprive the Executive of
any material fringe benefit enjoyed by the Executive at the time of the Change
in Control, or the failure by the Company to provide the Executive with the
number of paid vacation days to which the Executive is entitled on the basis of
years of service with the Company in accordance with the Company’s normal
vacation policy in effect at the time of the Change in Control;

 

(vi)                              any
proposed termination of the Executive’s employment which is not effected
pursuant to a Notice of Termination satisfying the requirements of Section 7.1,
for purposes of this Agreement, no such purported termination shall be
effective;

 

(vii)                           the
failure by the Company to obtain a satisfactory agreement from any successor to
assume and agree to perform this Agreement as contemplated in Section 9
hereof; or

 

(viii)                        the
Company’s requiring the Executive to relocate to an office or location more
than 50 miles distant from the office or location at which the Executive was
based immediately prior to the Date of Termination.

 

16.12.                  “Notice of Termination”
shall have the meaning stated in Section 7.1 hereof.

 

11

 

16.13.                  “Person” shall
have the meaning defined in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended.

 

16.14.                  “Retirement”
shall mean retirement after attaining “normal retirement age” under any pension
or retirement plan maintained by the Company in which the Executive
participates.

 

16.15.                  “Severance Payments”
shall mean the payment(s) described in Section 6 hereof.

 

 

	
   

  	
  CHARLES
  RIVER LABORATORIES,

  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

12

 

	
  Agreed and Accepted:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
			

 

13

 

Annex 1

 

(a)                                  Anything
in the Agreement to the contrary notwithstanding but subject to paragraph (b) of
this Annex, in the event it shall be determined that any payment or
distribution by the Company to or for the benefit of Executive, whether paid or
payable or distributed or distributable pursuant to the terms of the Agreement
or otherwise (a “Payment”), would
be subject to the excise tax imposed by Section 4999 of the Code or
similar section or any interest or penalties with respect to such excise
tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the “Excise
Tax”), Executive shall be entitled to receive an additional payment
(a “Gross-Up Payment”) in lump sum
in an amount such that after payment by Executive of all taxes (including any
interest or penalties imposed with respect to such taxes), including any Excise
Tax, imposed upon the Gross-Up Payment, Executive retains an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the Payment.

 

(b)                                 Notwithstanding
paragraph (a) of this Annex, if the aggregate value of the Payment is less
than 315% of the Executive’s “base amount” (as defined in Section 280G(b)(3) of
the Code), then the Executive shall not be entitled to any Gross-Up Payment
and, instead, the Payment shall be reduced to an amount equal to $1.00 less
than 300% of the “base amount”.

 

(c)                                  Subject
to the provisions of paragraph (d) of this Annex, all determinations
required to be made under this Annex, including whether a Gross-Up Payment is
required and the amount of such Gross-Up Payment, shall be made at the Company’s
expense by an accounting firm selected by the Company and acceptable to the
Executive which is designated as one of the four (4) largest accounting
firms in the United States (the “Accounting
Firm”) which shall provide detailed supporting calculations both to
the Company and the Executive within 15 business days of termination of
employment under the Agreement, if applicable, or such earlier time as is
requested by the Executive or the Company. When calculating the amount of the
Gross-Up Payment, the Executive shall be deemed to pay:

 

(i)                                     federal
income taxes at the highest applicable marginal rate of federal income taxation
for the calendar year in which the Gross-Up Payment is to be made, and

 

(ii)                                  any
applicable state and local income taxes at the highest applicable marginal rate
of taxation for the calendar year in which the Gross-up Payment is to be made,
net of the maximum reduction in federal income taxes which could be obtained
from deduction of such state and local taxes if paid in such year.

 

If the
Accounting Firm determines that no Excise Tax is payable by the Executive, it
shall state in writing to Executive that Executive has substantial authority
not to report any Excise Tax on Executive’s federal income tax return. Any
determination by the Accounting Firm shall be binding upon the Company and
Executive. As a result of the

 

A-1

 

uncertainty in the application of Section 4999 of the Code at the
time of the initial determination by the Accounting Firm hereunder, it is
possible that Gross-Up Payments which will not have been made by the Company
should have been made (“Underpayment”),
consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to paragraph (d) of this
Annex, and Executive is thereafter required to make a payment of any Excise
Tax, the Accounting Firm shall determine the amount of the Underpayment that
has occurred and any such Underpayment shall be promptly paid by the Company to
or for the benefit of the Executive.

 

(d)                                 The
Executive shall notify the Company in writing of any claim by the Internal
Revenue Service that, if successful, would require the payment by the Company
of the Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than 10 business days after Executive knows of such
claim and shall notify the Company of the nature of such claim and the date on
which such claim is requested to be paid. Executive shall not pay such claim
prior to the expiration of the 30-day period following the date on which
Executive gives such notice to the Company (or such shorter period ending on
the date that any payment of taxes with respect to such claim is due). If the
Company notifies Executive in writing prior to the expiration of such period
that it desires to contest such claim, Executive shall:

 

(iii)                               give
the Company any information reasonably requested by the Company relating to
such claim,

 

(iv)                              take
such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time including, without limitation,
accepting legal representation with respect to such claim by an attorney
reasonably selected by the Company,

 

(v)                                 cooperate
with the Company in good faith in order effectively to contest such claim, and

 

(vi)                              permit
the Company to participate in any proceedings relating to such claim;

 

provided, however, that the Company shall bear and pay directly all
costs and expenses (including additional interest and penalties) incurred in
connection with such contest and shall indemnify and hold Executive harmless,
on an after-tax basis, for any Excise Tax or income tax, including interest and
penalties with respect thereto, imposed as a result of such representation and
payment of costs and expenses.

 

Without
limitation on the foregoing provisions of this paragraph (d), the Company shall
control all proceedings taken in connection with such contest and, at its sole
option, may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of
such claim and may, at its sole option, either direct Executive to pay the tax
claimed and sue for a refund or contest the claim in any permissible manner,
and Executive agrees to prosecute such contest to a

 

A-2

 

determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs Executive to pay such
claim and sue for a refund, the Company shall advance the amount of such
payment to Executive, on an interest-free basis and shall indemnify and hold
Executive harmless, on an after-tax basis, from any Excise Tax or income tax,
including interest or penalties with respect thereto, imposed with respect to
such advance or with respect to any imputed income with respect to such
advance; and further provided that any extension of the statute of limitations
relating to payment of taxes for Executive’s taxable year with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company’s control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
Executive shall be entitled to settle or contest, as the case may be, any
other issue raised by the Internal Revenue Service or any other taxing
authority.

 

(e)                                  If
after the receipt by Executive of an amount advanced by the Company pursuant to
paragraph (d) of this Annex, Executive becomes entitled to receive any
refund with respect to such claim, Executive shall (subject to the Company’s
complying with the requirements of paragraph (d) of this Annex) promptly
pay to the Company the amount of such refund (together with any interest paid
or credited thereon by the taxing authority after deducting any taxes applicable
thereto). If, after the receipt by Executive of an amount advanced by the
Company pursuant to paragraph (d) of this Annex, a determination is made
that Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify Executive in writing of its intent to contest
such denial of refund prior to the expiration of 30-days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid under paragraph (d) of
this Annex. The forgiveness of such advance shall be considered part of
the Gross-Up Payment and subject to gross-up for any taxes (including interest
or penalties) associated therewith.

 

A-3EXHIBIT
4.3

 

AGREEMENT,
CONSENT AND AMENDMENT NO. 2 TO THIRD AMENDED

AND
RESTATED CREDIT AGREEMENT

 

This AGREEMENT, CONSENT
AND AMENDMENT NO. 2 TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (“Agreement”)
dated as of November 30, 2005 (the “Effective Date”) is among Edge
Petroleum Corporation, a Delaware corporation (“Parent”), Edge Petroleum
Exploration Company, a Delaware corporation (“Edge Exploration”), Edge
Petroleum Operating Company, Inc., a Delaware corporation (“Edge Operating”)
Miller Exploration Company, a Delaware corporation (“Miller Exploration”),
and Miller Oil Corporation, a Michigan corporation (“Miller Operating”)
and Cinco Energy Corporation, a Delaware corporation (“Cinco Energy”,
and together with the Parent, Edge Exploration, Edge Operating, Miller
Exploration and Miller Operating referred to collectively as the “Borrowers”),
the lenders party to the Credit Agreement (as defined below) from time to time
(the “Lenders”), and Union Bank of California, N.A., as agent for the
Lenders (“Agent”).

 

RECITALS

 

A.                                   The
Borrowers (other than Cinco Energy), the Lenders and the Agent are parties to
the Third Amended and Restated Credit Agreement dated as of December 31, 2003,
as amended by the Agreement and Amendment No. 1 to Third Amended and Restated
Credit Agreement dated as of May 31, 2005 (as so amended, the “Credit
Agreement”; the defined terms of which are used herein unless otherwise
defined herein).

 

B.                                     The
Borrowers, the Lenders and the Agent wish to, subject to the terms and
conditions of this Agreement:  (1)
consent to the transactions contemplated by the Cinco Energy Acquisition Agreement (each as defined below), (2) increase
the Commitments, (3) increase the Borrowing Base, (4) add Cinco Energy as a
Borrower, and (5) make such other amendments to the Credit Agreement as
provided herein.

 

THEREFORE, in
consideration of their mutual undertakings, the Borrowers, the Lenders and the
Agent hereby agree as follows:

 

Section
1.                                          Defined Terms; Other
Definitional Provisions. As used in this Agreement, each of the terms defined
in the opening paragraph and the Recitals above shall have the meanings
assigned to such terms therein. The words “hereby”,
“herein”, “hereinafter”, “hereof”, “hereto” and “hereunder” when used in this
Agreement shall refer to this Agreement as a whole and not to any particular
Article, Section, subsection or provision of this Agreement. All titles or
headings to Articles, Sections, subsections or other divisions of this
Agreement or the exhibits hereto, if any, are only for the convenience of the
parties and shall not be construed to have any effect or meaning with respect
to the other content of such Articles, Sections, subsections, other divisions
or exhibits, such other content being controlling as the agreement among the parties
hereto. Whenever the context requires, reference herein made to the single
number shall be understood to include the plural; and likewise, the plural
shall be understood to include the singular. Words denoting sex shall be
construed to include the masculine, feminine 

 

 

and neuter, when such construction is appropriate; and
specific enumeration shall not exclude the general but shall be construed as
cumulative.

 

Section
2.                                          Consent to Acquisition. Subject to the terms of this Agreement,
the Lenders hereby consent to the consummation of the transactions contemplated
by the Stock Purchase Agreement dated
as of September 21, 2005 (the “Cinco Energy Acquisition Agreement”) with
Jon L. Glass, Craig D. Pollard, Leigh T. Prieto, Yorktown Energy Partners V,
L.P. and Yorktown Energy Partners VI, L.P. relating to the sale of all of the
outstanding capital stock of Cinco Energy to Edge Exploration, as buyer, and the
Parent, as guarantor. The consent by the Lenders described in the preceding
sentence is contingent upon the satisfaction of the conditions precedent set
forth below in this Agreement and is strictly limited to the extent described
herein. Nothing contained herein shall be construed to be a consent to or a
permanent waiver of any 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 present or future defaults with respect to the Credit
Agreement or any other provision of any Loan Document. 

 

Section
3.                                          Addition of Cinco Energy
as a Borrower.
As of the date hereof, Cinco Energy agrees to perform and observe, each and
every one of the covenants, rights, promises, agreements, terms, conditions,
obligations, appointments, duties and liabilities of a “Borrower” under the
Credit Agreement and all other Loan Documents. By virtue of the foregoing, Cinco
Energy hereby accepts and assumes any liability of the Borrowers related to
each representation, warranty, covenant or obligation made by any of the
Borrowers in the Credit Agreement or any other Loan Document, and hereby
expressly affirms, as of the date hereof, each of such representations and
warranties and such covenants and obligations in the Credit Agreement. All
references to the term “Borrower” or “Borrowers” in the Credit Agreement or in
any other Loan Document, or in any document or instrument executed and
delivered or furnished, or to be executed and delivered or furnished in connection
with the Credit Agreement, shall be deemed to include Cinco Energy. Cinco
Energy further acknowledges that the obligations of each of the Borrowers (including
Cinco Energy) under the Credit Agreement and the Notes are joint and several
pursuant to Section 5.23(a) of the Credit Agreement.

 

Section
4.                                          Increase in Borrowing Base. The Borrowing Base shall, effective as of
the Effective Date and subject to the terms herein, be increased from
$70,000,000.00 to $110,000,000.00. Such new Borrowing Base shall remain in
effect at that level until the Borrowing Base is redetermined in accordance
with the terms of the Credit Agreement.

 

Section
5.                                          Amendments to the Credit
Agreement.

 

(a)                                  The title page of the Credit Agreement
shall be amended to replace the existing Commitment amount of $100,000,000 with
the new Commitment amount of $150,000,000.

 

(b)                                 Section 1.2 of the Credit Agreement is
hereby amended by replacing the definitions of “Commitment” and “Financial
Statements” in their entirety with the following:

 

“Commitment” shall
mean, for each Lender, the amount set opposite such Lender’s name on Schedule 2
hereof as its Commitment or, if such Lender has 

 

2

 

entered into any Lender
Assignment Agreement after the date of this Agreement, the amount set forth for
such Lender as its Commitment in the Register maintained by the Agent pursuant
to Section 9.1(c), as such amount may be reduced pursuant to Section 2.12.

 

“Financial Statements”
shall mean statements of the financial condition of the Parent and its
consolidated Subsidiaries on a consolidated, and if requested by the Agent,
consolidating basis as at the point in time and for the period indicated and
consisting of at least a balance sheet and related statements of operations,
common stock and other stockholders’ equity, and cash flows, and when such
statements prepared on a consolidated basis are required by applicable
provisions of this Agreement to be audited, accompanied by the unqualified
certification of a nationally-recognized firm of independent certified public
accountants or other independent certified public accountants acceptable to the
Agent and footnotes to any of the foregoing, all of which shall be prepared in
accordance with GAAP consistently applied from quarter to quarter (except for
any inconsistency that results from a change in GAAP) and consistently applied
within each set of Financial Statements and in comparative form with respect to
the corresponding period of the preceding fiscal period.

 

(c)                                  Section 1.2 of
the Credit Agreement is hereby further amended by inserting the following new
definition in alphabetical order:

 

“Fee Letter” means
that certain fee letter dated as of November 30, 2005 between the Borrowers and
the Agent.

 

(d)                                 Section 2.14 of
the Credit Agreement is hereby amended by replacing the existing Section 2.14
in its entirety with the following:

 

2.14                                 Other Fees. The Borrowers
agree to pay to the Agent the fees as described in the Fee Letter.

 

(e)                                  The reference to .50% in the second sentence of Section 2.15 of the
Credit Agreement is hereby deleted and replaced with .35%.

 

(f)                                    Section 5.2 of the Credit Agreement is hereby amended by replacing the
existing Section 5.2 in its entirety with the following:

 

5.2                                       Quarterly Financial Statements;
Compliance Certificates.  Cause the Parent to deliver to the Agent and each Lender,
(a) on or before the 45th day after the close of each of the first three
quarterly periods of each fiscal year of the Parent, a copy of the unaudited
consolidated, and if requested by the Agent, 
consolidating Financial Statements of the Parent and its consolidated
Subsidiaries as at the close of such quarterly period and from the beginning of
such fiscal year to the end of such period, such Financial Statements to be
certified by a Responsible Officer of the Parent (i) as having been prepared in
accordance with GAAP consistently applied from quarter to quarter (except for
any inconsistency that results from a change in GAAP) and consistently applied
within each set of 

 

3

 

Financial
Statements and (ii)as a fair presentation of the condition of the Parent,
subject to changes resulting from normal year-end audit adjustments, and (b) on
or before the 45th day after the close of each fiscal quarter of the Parent and
on or before the 90th day after the close of each fiscal year of the Parent, a
Compliance Certificate in the form of Exhibit B hereto signed by a Responsible
Officer of the Parent.

 

(g)                                 Section 5.3 of the Credit Agreement is hereby
amended by replacing the existing Section 5.3 in its entirety with the
following:

 

5.3                                 Annual Financial Statements. Cause the Parent to deliver to the
Agent and each Lender, on or before the 90th day after the close of each fiscal
year of the Parent, a copy of the annual audited consolidated, and if requested
by the Agent,  unaudited consolidating
Financial Statements of the Parent.

 

(h)                                 Clause (j) of Section 6.8 of the Credit
Agreement is hereby deleted and replaced in its entirety with the following new
clause (j):

 

and (j) acquisitions of Oil
and Gas Properties;

 

(i)                                     The Schedule 2 to this Agreement is hereby
added as new Schedule 2 to the Credit Agreement.

 

(j)                                     Schedule 4.21 to the Credit Agreement is
hereby deleted and replaced in its entirety with new Schedule 4.21 to this
Agreement.

 

Section
6.                                          Representations and
Warranties. The
Borrowers hereby represent and warrant that: 
(a)  except for such
representations which are made only as of a prior date, the representations and
warranties set forth in the Credit Agreement and in the other Loan Documents
are true and correct in all material respects as of the Effective Date as if
made on and as of such date; (b) the execution, delivery and performance of
this Agreement and any Loan Documents executed and delivered in connection with
this Agreement are within the corporate power and authority of each Borrower
and have been duly authorized by appropriate corporate action and proceedings;
(c) this Agreement and the Loan Documents executed in connection with this
Agreement constitute legal, valid, and binding obligations of the Borrowers
party hereto and thereto, enforceable in accordance with their terms, except as
limited by applicable bankruptcy, insolvency, reorganization, moratorium, or
similar laws affecting the rights of creditors generally and general principles
of equity; and (d) 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 Agreement and such other Loan
Documents.

 

Section
7.                                          Conditions. This Agreement shall become effective
and enforceable against the parties hereto, the Credit Agreement shall be
amended as provided herein, and the Borrowing Base increase provided herein
shall become effective upon the occurrence of the following conditions
precedent on or before the Effective Date:

 

4

 

(a)                                  Agreement. The Agent
shall have received multiple original counterparts of this Agreement duly and
validly executed and delivered by duly authorized officers of the Borrowers,
the Agent and the Lenders.

 

(b)                                 New Notes. The Borrowers
shall have executed and delivered amended and restated Notes dated the date
hereof to each of the Lenders in an amount equal to each such Lender’s
respective new Commitment.

 

(c)                                  Mortgage
Supplements. The Agent shall have received original new
Mortgages and supplements to existing Mortgages, providing for the mortgaging
of certain additional Oil and Gas Properties and reflecting the increase in the
Commitments to an aggregate amount of $150,000,000, and otherwise, in form and
substance satisfactory to the Agent, duly and validly executed and delivered by
duly authorized officers of the Borrowers, the Agent and the Lenders.

 

(d)                                 Acquisition
Documents. The Agent shall have received copies, certified by
a Responsible Officer of Edge Exploration, of the Cinco Energy Acquisition
Agreement, and all other documents, agreements, instruments and amendments
thereto.

 

(e)                                  Consummation of
the Cinco Energy Acquisition Agreement. All conditions to the
consummation and effectiveness of the transactions contemplated by the Cinco
Energy Acquisition Agreement shall have been met on or prior to November 30,
2005, and the aggregate purchase price (including any debt assumed or issued
(other than pursuant to the Credit Agreement) but excluding any purchase price
adjustments resulting from cash or cash equivalents remaining with the sellers
or other adjustments to the purchase price or provided in the Cinco Energy
Acquisition Agreement) for the Cinco Energy Acquisition Agreement shall not
exceed $38,000,000, and after giving effect to any of the aforementioned
adjustments, shall not exceed $43,500,000.

 

(f)                                    Supplement to
Second Amended and Restated Security Agreement. The Agent shall have received original
counterparts of the Supplement No. 1 to the Second Amended and Restated Security
Agreement executed by Cinco Energy and the Agent covering all personal property
of Cinco Energy.

 

(g)                                 Amendment to Second Amended and Restated Security
Agreement (Stock Pledge). The Agent shall have received original counterparts of the Amendment
No. 1 to the Second Amended and Restated Security Agreement (Stock Pledge)
executed by Edge Exploration and the Agent listing the newly pledged collateral
covering all of the issued and outstanding capital stock of Cinco Energy and
other personal property related thereto.

 

(h)                                 Cinco Energy Stock Certificates &
Powers. The Agent
shall have received Irrevocable Stock Powers executed in blank by Edge
Exploration and the stock certificates for the stock of Cinco Energy pledged
under the Second Amended and Restated Security Agreement (Stock Pledge).

 

(i)                                     Fee Letter. The Agent
shall have received original counterparts of the Fee Letter duly and validly
executed by the Borrowers and the Agent.

 

5

 

(j)                                     Secretary’s
Certificate. The Agent shall have received copies, certified as
of the date hereof by a secretary or an assistant secretary of each of the
Borrowers and any Guarantor, of (A) the corporate resolutions duly adopted at a
meeting or by unanimous consent of the board of directors of such Borrower or
such Guarantor approving the increase in the Commitments, the execution of new
Notes and authorizing the transactions contemplated herein, (B) the Certificate
of Incorporation and all amendments thereto and the bylaws and all amendments
thereto of each of the Borrowers and any Guarantor, and (C) all other documents
evidencing other necessary corporate action and governmental approvals, if any,
with respect to this Agreement.

 

(k)                                  Good Standing
& Existence Certificates. The Agent shall have
received certificates dated as of a recent date from the Secretary of State or
other appropriate Governmental Authority evidencing the existence or
qualification and good standing of each of the Borrowers in its jurisdiction of
incorporation and in any other jurisdiction where such qualification is
required by applicable law.

 

(l)                                     Legal Opinion. The Agent
shall have received the opinion of Robert C. Thomas in form and substance
reasonably acceptable to the Agent.

 

(m)                               Other
Instruments or Documents. The Agent and the Lenders shall have
received duly executed new Security Instruments and such other instruments,
documents and attachments to existing Security Instruments as any of them may
reasonably request.

 

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

 

(o)                                 Fees. The Borrowers
shall have paid a Borrowing Base Increase Fee in an aggregate amount equal to
0.35% of the increased availability under the Borrowing Base to the Lenders,
which amount when calculated equals $140,000. Such fee shall be shared by the
Lenders as follows: (i) to BNP Paribas, the amount of $17,500, (ii) to Compass
Bank, the amount of $70,000, and (iii) to The Frost National Bank, the amount of $52,500. Such Borrowing Base Increase Fee shall be paid
on the Effective Date and shall, once paid be nonrefundable. Additionally, the
Borrower shall have paid (i) the Agency Fee described in the Fee Letter, and
(ii) all fees and expenses of the Agent’s outside legal counsel and other
consultants pursuant to all invoices presented for payment on or prior to the
Effective Date.

 

Section
8.                                          Miscellaneous.

 

(a)                                  Effect on Loan Documents. Each of the Borrowers, the Lenders and the Agent
does hereby adopt, ratify, and confirm the Credit Agreement, as amended hereby
and acknowledges and agrees that the Credit Agreement, as amended hereby, is
and remains in full force and effect. Nothing herein shall act as a waiver of
any of the Agent’s or the Lender’s rights under the Loan Documents, as amended.
From and after the Effective Date, all references to the Credit Agreement and
the Loan Documents shall mean such Credit Agreement and such Loan Documents, as
amended hereby. This Agreement 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 Agreement shall
be an Event of Default under the Credit Agreement.

 

6

 

(b)                                 New Lenders. Compass Bank and The Frost National
Bank are hereby added as new Lenders under the Credit Agreement. Both Compass
Bank and The Frost National Bank, by executing this Agreement, (a) confirm that
they have received a copy of the Credit Agreement together with any financial
statements needed, and such other documents and information as they have deemed
appropriate to make its own credit analysis and decision to enter into this
Agreement; (b) agree that they will, independently and without reliance upon
the Agent, or any other Lender, and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under the Credit Agreement or any
other Loan Document; (c) appoint and authorize the Agent to take such action as
agent on behalf and to exercise such powers under the Credit Agreement and any
other Loan Document as are delegated to the Agent by the terms thereof,
together with such powers as are reasonably incidental thereto; and (d) agree
that they will perform in accordance with their terms, all of the obligations which
by the terms of the Credit Agreement and any other Loan Document are required
to be performed by it as a Lender.

 

(c)                                  Counterparts. This Agreement 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 Agreement may be executed
by facsimile signature and all such signatures shall be effective as originals.

 

(d)                                 Successors and Assigns. This Agreement 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.

 

(e)                                  Invalidity. In the event that any one or more of the provisions
contained in this Agreement 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 Agreement.

 

(f)                                    Governing Law. This Agreement shall be deemed to be a
contract made under and shall be governed by and construed in accordance with
the laws of the State of Texas.

 

THIS
AGREEMENT, 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.

 

[SIGNATURES BEGIN
ON NEXT PAGE]

 

7

 

EXECUTED effective as of the date first above written.

 

 

	
   

  	
  BORROWERS:

  
	
   

  	
   

  
	
   

  	
  EDGE PETROLEUM
  CORPORATION

  
	
   

  	
  EDGE PETROLEUM
  EXPLORATION COMPANY

  
	
   

  	
  EDGE PETROLEUM
  OPERATING COMPANY, INC.

  
	
   

  	
  MILLER OIL CORPORATION

  
	
   

  	
  MILLER EXPLORATION
  COMPANY

  
	
   

  	
  CINCO ENERGY
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  All by:

  	
  /S/ MICHAEL G. LONG

  
	
   

  	
   

  	
  Michael G. Long, Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AGENT AND LENDERS:

  
	
   

  	
   

  
	
   

  	
  UNION BANK OF CALIFORNIA,
  N.A., as

  
	
   

  	
  Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /S/
  DAMIEN MEIBURGER

  
	
   

  	
   

  	
  Damien
  Meiburger

  
	
   

  	
   

  	
  Senior
  Vice President

  
				

 

 

	
   

  	
  BNP PARIBAS, as a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/
  DAVID DODD

  	
   

  
	
   

  	
  Name: 

  	
  DAVID
  DODD

  	
   

  
	
   

  	
  Title:

  	
  DIRECTOR

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/
  BETSY JOCHER

  	
   

  
	
   

  	
  Name:

  	
  BETSY
  JOCHER

  	
   

  
	
   

  	
  Title:

  	
  VICE
  PRESIDENT

  	
   

  
									

 

 

	
   

  	
  COMPASS
  BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/
  DOROTHY MARCHAND

  	
   

  
	
   

  	
  Name:

  	
  DOROTHY
  MARCHAND

  	
   

  
	
   

  	
  Title:

  	
  SENIOR
  VICE PRESIDENT

  	
   

  
					

 

 

	
   

  	
  THE
  FROST NATIONAL BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/
  ANDREW A. MERRYMAN

  	
   

  
	
   

  	
  Name:

  	
  ANDREW
  A. MERRYMAN

  	
   

  
	
   

  	
  Title:

  	
  SENIOR
  VICE PRESIDENT

  	
   

  
					

 

 

Schedule 2

 

COMMITMENTS

 

Each
of the commitments to lend set forth herein is governed by the terms of the
Credit Agreement which provides for, among other things, borrowing base
limitations which may restrict Borrowers’ ability to request (and the Lenders’
obligation to provide) Loans to a maximum amount which is less than the
commitments set forth in this Schedule 2.

 

	
  Lenders

  	
   

  	
  Commitments

  	
   

  
	
  Union Bank of
  California, N.A.

  	
   

  	
  $

  	
  57,272,728

  	
   

  
	
  BNP Paribas

  	
   

  	
  $

  	
  45,000,000

  	
   

  
	
  Compass Bank

  	
   

  	
  $

  	
  27,272,727

  	
   

  
	
  The Frost
  National Bank

  	
   

  	
  $

  	
  20,454,545

  	
   

  
	
  Total:

  	
   

  	
  $

  	
  150,000,000.00

  	
   

  

 

 

SCHEDULE 4.21

 

SUBSIDIARIES

 

Edge
Petroleum Corporation:

Edge
Petroleum Exploration Company

Miller
Exploration Company

 

Edge
Petroleum Exploration Company:

Edge
Petroleum Operating Company, Inc.

Cinco
Energy Corporation

 

Edge
Petroleum Operating Company, Inc.:

None

 

Miller
Exploration Company:

Miller
Oil Corporation

 

Miller
Oil Corporation:

None

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]