Document:

Exhibit 4.1

 

CONSENT

 

This Consent (the “Agreement”) dated as of July 1, 2008
(the “Consent 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 is
party to that certain Fourth Amended and Restated Credit Agreement dated as of January 31,
2007 among the Borrower, the financial institutions party thereto from time to
time (the “Lenders”), the Issuing Lender and the Administrative Agent,
as amended by Amendment No.1 dated July 11, 2007, by Amendment No. 2
dated December 10, 2007, and by Amendment No.3 and Agreement (“Amendment No. 3”)
dated May 8, 2008 (as so amended and as the same may be further amended,
modified or supplemented from time to time, the “Credit Agreement”;
unless otherwise defined in this Agreement, each term used in this Agreement
that is defined in the Credit Agreement has the meaning assigned to such term
in the Credit Agreement).

 

B.                                     Pursuant to
Amendment No. 3, the Credit Agreement permits the Administrative Agent and
the Lenders to redetermine the Borrowering Base and Conforming Borrowing Base
on or before June 30, 2008.

 

C.                                     Subject to the
terms and conditions of this Agreement, the Borrower, the Administrative Agent,
the Issuing Lender and the Lenders wish to consent to defer their option to
conduct the June 2008 Redetermination (as defined in Amendment No. 3)
until October 31, 2008.

 

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

 

Section 1.  Consent to Defer Redetermination.

 

(a)                                  The
Administrative Agent and the Lenders hereby consent to defer their right to
conduct the June 2008 Redetermination until October 31, 2008 and,
subject to the terms of the following proviso, the June 2008
Redetermination shall occur on October 31, 2008; provided that, (i) when
such June 2008 Redetermination occurs, only a Borrowing Base shall be
established and such Borrowing Base shall also be the Conforming Borrowing
Base, (ii) such June 2008 Redetermination must be approved by all the
Lenders, and (iii) such consent is contingent upon the following: (A) a
merger agreement (the “Merger Agreement”) with a counterparty reasonably
satisfactory to the Administrative Agent and on terms reasonably satisfactory
to the Administrative Agent shall have been executed and delivered on or before
July 15, 2008, (B) a registration statement containing a preliminary
proxy statement/prospectus relating to the merger (“Merger”) contemplated by
the Merger Agreement shall have been filed 

 

1

 

with the Securities and Exchange Commission and all
initial filings for any other required Governmental Approvals shall have been
made or obtained on or before August 15, 2008, and (C) the
shareholder vote approving the Merger occurs within forty (40) days following
the mailing to Borrower’s stockholders of the proxy statement/prospectus
relating to Borrower’s stockholder meeting to consider the Merger (each, a “Required
Event”).  In the event that any Required
Event does not occur by the respective required date, the Administrative Agent
and the Lenders shall promptly thereafter redetermine the Borrowing Base (it
being understood that only a single Borrowing Base shall be determined and that
such Borrowing Base shall also be the Conforming Borrowing Base).

 

(b)                                 The express consent set forth in this Section 1 is limited to the extent described
herein and shall not 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, unless expressly
provided so herein.  The Administrative
Agent and 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 2.  Borrower Representations and Warranties.  The Borrower represents and warrants that: (a) after
giving effect to this Agreement, 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 Consent Effective Date 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 Agreement, no Default has occurred and is continuing; (c) the
execution, delivery and performance of this Agreement 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
Agreement 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 Agreement; and (f) other than Liens released in
connection with the Subject Property, the Liens under the Security Documents
are valid and subsisting and secure the Borrower’s obligations under the Loan
Documents.

 

Section 3.  Conditions to Effectiveness.  This Agreement shall become effective
on the Consent Effective Date and 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 Agreement duly and validly
executed and delivered by duly authorized officers of the Borrower, the
Administrative Agent and the Lenders.

 

2

 

(b)                                 After
giving effect to this Agreement, no Default shall have occurred and be
continuing as of the Consent Effective Date.

 

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

 

(d)                                 The
Borrower shall have paid all costs and expenses which have been invoiced and
are payable pursuant to Section 9.03 of the Credit Agreement.

 

Section 4.  Acknowledgments and Agreements.

 

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

 

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

 

(b)                                 Each of the Borrower, the Administrative
Agent 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 Agreement.

 

(c)                                  From and after the Consent Effective Date,
all references to the Credit Agreement and the Loan Documents shall mean such
Credit Agreement and such Loan Documents as modified by this Agreement.

 

(d)                                 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 a
Default or Event of Default, as applicable, under the Credit Agreement.

 

Section 5.  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.

 

Section 6.  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.

 

Section 7.  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.

 

Section 8.  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.

 

3

 

Section 9.  Entire Agreement.  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.

 

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  John W. Elias

  
	
   

  	
   

  
	
   

  	
  Name:

  	
    John W. Elias

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Chairman, President & CEO

  
					

 

 

	
  ADMINISTRATIVE AGENT/

  	
   

  
	
  ISSUING LENDER/LENDER:

  	
  UNION BANK OF CALIFORNIA, N.A.,

  
	
   

  	
  as Administrative Agent, Issuing Lender

  
	
   

  	
  and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Damien Meiburger

  
	
   

  	
  Name:

  	
    Damien Meiburger

  
	
   

  	
  Title:

  	
      Senior Vice President

  
					

 

 

	
  LENDERS:

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Stephen Lescher

  
	
   

  	
  Name:

  	
     Stephen Lescher

  
	
   

  	
  Title:

  	
       Senior Vice President

  
					

 

 

	
   

  	
  SUNTRUST BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter
  Panas

  
	
   

  	
  Name:

  	
     Peter Panas

  
	
   

  	
  Title:

  	
       Director

  
					

 

 

	
   

  	
  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:

  	
         /s/ Darrell Holley

  
	
   

  	
  Name:

  	
    Darrell
  Holley

  
	
   

  	
  Title:

  	
       Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
         /s/ Scott Myatt

  
	
   

  	
  Name:

  	
    Scott
  Myatt

  
	
   

  	
  Title:

  	
       Vice
  President

  
						

 

 

	
   

  	
  THE FROST NATIONAL BANK, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
         /s/ Andrew Merryman

  
	
   

  	
  Name:

  	
    Andrew Merryman

  
	
   

  	
  Title:

  	
       SVP

  
						

 

 

	
   

  	
  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/ Heather Wells Kiely

  
	
   

  	
  Name:

  	
    Heather Wells Kiely

  
	
   

  	
  Title:

  	
       Assistant Vice President

  
						

 

 

	
   

  	
  BANK OF SCOTLAND PLC, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
         /s/ Julia R. Franklin

  
	
   

  	
  Name:

  	
    Julia R. Franklin

  
	
   

  	
  Title:

  	
       Assistant Vice PresidentExhibit 10.1

 

First Amendment

to

Amended and Restated Severance Agreement

 

WHEREAS, Edge Petroleum Corporation
(the “Company”) and John W. Elias (“Executive”) previously entered into a
Severance Agreement and most recently amended such agreement as of the date
stated therein (as amended, the “Executive Amended and Restated Severance
Agreement”); and

 

WHEREAS, the Company and Executive wish to
further amend the Amended and Restated Severance Agreement regarding “Welfare
Benefit Coverage”; and

 

WHEREAS, in consideration for Executive’s
agreement to enter into this First Amendment to the Amended and Restated
Severance Agreement, the Company will, upon the occurrence of a Change of
Control (as defined in Section 1(b) of the Amended and Restated
Severance Agreement and further clarified in this Amendment), automatically
vest any Restricted Stock Award that is outstanding as of the date of such
Change of Control.

 

NOW THEREFORE, in consideration of the mutual
promises set forth in this amendment, the Company and Executive, intending to
be legally bound, hereby agree as follows, all effective as of July 14,
2008.

 

1.             Paragraph 1(b) of the Amended and
Restated Severance Agreement is amended by deleting subparagraph (i) and
replacing it with the following paragraph:

 

“(i)          The
Company (A) shall not be the surviving entity in any merger, consolidation
or other reorganization (or survives only as a subsidiary of an entity other
than a previously wholly-owned subsidiary of the Company) or (B) is to be
dissolved and liquidated, and as a result of or in connection with such
transaction which for the avoidance of doubt, applies to (A) and (B), the
persons who were directors of the Company before such transaction shall cease
to constitute a majority of the Board;”

 

2.             Paragraph 1(m) of the Amended and
Restated Severance Agreement is deleted.

 

3.             Paragraphs 3(d), 3(e) and 3(f),
respectively, of the Amended and Restated Severance Agreement are redesignated
as Paragraphs 3(e), 3(f) and 3(g), respectively.

 

4.             Paragraph 3(c) of the Amended and
Restated Severance Agreement is amended by deleting that Paragraph in its
entirety and replacing it with the following Paragraphs:

 

“(c)         Executive
and, if applicable, his or her eligible dependents who are covered under the
Company’s medical, dental or vision plans (collectively, the “Company Group
Health Plans”) as of the date on which Executive’s Involuntary Termination 

 

 

occurs shall be entitled to
elect to continue coverage under the Company Group Health Plans in accordance
with section 4980B of the Code and sections 601-607 et  seq. of
the Employee Retirement Income Security Act of 1974, as amended (“COBRA”), or
similar provisions of applicable state continuation coverage laws.  If and to the extent that Executive and/or
his or her eligible dependents elect COBRA coverage then, during the
Continuation Period (defined below), Executive and, if applicable, his or her
covered dependents shall be required to pay the active employee rates
applicable to similarly situated active employees for the applicable type and
level of coverage under the applicable Company Group Health Plans (the “Executive
Contribution”) and the Company shall pay the remainder of any required premium
for the Continuation Period.  For
purposes of this Agreement, the “Continuation Period” shall be the period
commencing on the date of Executive’s Involuntary Termination and ending on the
earliest to occur of (i) the expiration of eighteen months after Executive’s
Involuntary Termination (or any additional period required pursuant to
applicable federal or state law), (ii) the date Executive or, if
applicable, his or her covered dependents, is eligible for medical, dental or
vision coverage, as applicable, under another employer-provided group health
plan (with Executive being obligated hereunder to report such eligibility to
the Company within 30 days and certify eligibility for payments hereunder
promptly upon request of the Company), or (iii) the date on which COBRA
coverage (or applicable state continuation coverage, if applicable)
terminates.  The amount and due dates for
such payment shall be communicated to Executive and, if applicable, his or her
eligible dependents within 44 days of the date of Executive’s Involuntary
Termination.  The foregoing is intended
to reflect financial agreements between Employee and the Company and shall not
be construed to limit Executive’s rights under COBRA.  The Continuation Period shall run
concurrently with the required COBRA continuation coverage period (and any
period of state continuation coverage required by applicable law) and shall not
extend any person’s COBRA continuation coverage period (or period of state
continuation coverage).

 

(d)                                 If
the Continuation Period expires pursuant to Section 3(c)(i) above,
then following the expiration of the Continuation Period, if and to the extent
that Executive, and, where applicable, Executive’s covered dependents were
covered by the Company Group Health Plans immediately prior to termination of
the Continuation Period and are not eligible for medical, dental or vision
coverage, as applicable, under another employer-provided group health plan,
Executive shall be entitled to receive a cash lump sum payment equal to
eighteen times the monthly amount, if any, that the Company or its successor
(or any parent or affiliate of the Company or its successor), as applicable,
pays to subsidize employee medical, dental or vision coverage, as applicable,
for similarly situated active employees and their dependents for the type and
level of coverage that was being provided to Executive and his or her covered
dependents, if applicable, under the Company Group Health Plans (as COBRA
coverage) immediately prior to the end of the Continuation Period (the “Company
Subsidy Amount”) based on the Company subsidy rates in effect in the month
immediately prior to the expiration of the Continuation Period.  Payment of such Company Subsidy 

 

2

 

Amount shall be made within 30
days of the expiration of the Continuation Period.

 

5.             Paragraph 6(c) of the Amended and
Restated Severance Agreement is amended by substituting the phrase “except as
provided in Paragraph 3(c), (d) or (e) hereof” for the phrase “except
as provided in Paragraph 3(c) hereof”.

 

6.             Voluntary Execution of Agreement.  Executive acknowledges that he or she has
carefully read and fully understand all of the terms of this First Amendment to
the Amended and Restated Severance Agreement, has had sufficient time to
consult with counsel of his or her choice, and that he or she enters into this
Agreement voluntarily and without any duress or undue influence on the part or
behalf of the Company.

 

IN WITNESS WHEREOF, THE PARTIES HERETO HAVE EXECUTED THIS FIRST
AMENDMENT TO THE AMENDED AND RESTATED SEVERANCE AGREEMENT ON THE 14th DAY OF
JULY, 2008.

 

 

	
   

  	
  EDGE
  PETROLEUM CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /s/ David F. Work

  
	
   

  	
   

  	
  David F. Work

  
	
   

  	
   

  	
  Chairman, Compensation Committee of

  
	
   

  	
   

  	
  the Board of Directors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
       /s/ John W. Elias

  
	
   

  	
   

  	
  John W. Elias

  

 

3

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