Document:

Exhibit 10.1

FIRST
AMENDMENT TO CREDIT AGREEMENT

This First Amendment to
Credit Agreement dated as of August 9, 2007 (this “Amendment”) is among Warren
Resources, Inc. (“Borrower”), Warren Resources of California Inc. and Warren E
& P, Inc. (collectively, “Guarantors”), the lenders party hereto (the “Lenders”)
and JPMorgan Chase Bank, N.A., as Administrative Agent (the “Administrative
Agent”) and a Lender.

W
I  T  N  E  S  S  E  T  H:

WHEREAS, Borrower, the
Administrative Agent and the Lenders signatory thereto are parties to that
certain Credit Agreement dated as of November 16, 2006 (as amended, the “Credit
Agreement”) and to certain other documents executed in connection with the
Credit Agreement; and

WHEREAS, each Guarantor
entered into a Guaranty (individually and collectively, the “Guaranty”) of even
date with the Credit Agreement; and

WHEREAS, BMO Capital
Markets Financing, Inc., has become a Lender as set forth in that certain
Assignment and Assumption dated of even date herewith (the “BMO Assignment”);
and

WHEREAS, the parties
hereto wish to amend certain provisions of the Credit Agreement as provided
herein.

NOW, THEREFORE, the
parties hereto agree as follows:

1.             Definitions.           Except
as otherwise provided below, unless the context hereof indicates otherwise, all
capitalized terms used herein shall have the same meaning as such capitalized
terms are defined in the Credit Agreement.

2.             Amendments.

(a)           Section 2.09(a) of the Credit
Agreement is hereby amended by deleting “$40,000,000.00” and substituting “$50,000,000.00”
in place thereof.

(b)           Schedule 2.01 of the Credit Agreement
is hereby amended and restated in its entirety to read as set forth as Schedule
2.01 attached hereto.

3.             Conditions Precedent.  The effectiveness of this Amendment is
subject to the satisfaction of the following conditions precedent:

(a)           Execution of Amendment.  Borrower and Guarantors shall have executed
and delivered this Amendment to the Administrative Agent.

(b)           Execution of BMO Assignment.
Borrower shall have executed and delivered the BMO Assignment to the
Administrative Agent.

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(c)           Execution of Notes. Borrower
shall have executed and delivered to the Administrative Agent promissory notes
payable to each Lender, evidencing each such Lender’s Loans to Borrower and in
the form required by the Credit Agreement.

(d)           Upfront Fee.  Borrower shall have paid the Administrative
Agent, for the account of each Lender, an upfront fee of $20,000.

(e)           Assignment Fee.  Borrower shall have paid to the
Administrative Agent the $3,500 fee required by Section 9.04(b)(ii)(c) of the
Credit Agreement in connection with the BMO Assignment.

(f)            Fees to Lenders.  Payment of all other fees required to be paid
to the Administrative Agent or the Lenders in connection with this Amendment.

(g)           No Material Adverse Change.  There shall not have been, in the sole
judgment of Lenders, any material adverse change in the financial condition,
business or operations of Borrower or any Guarantor.

(h)           Other.  The execution and delivery of such additional
documents and instruments which the Administrative Agent and its counsel may
deem necessary to effectuate this Amendment or any document executed and
delivered to the Lenders in connection herewith or therewith.

4.             Representations and Warranties
of Borrower and Guarantors.  Borrower
and Guarantors hereby represent and warrant to the Administrative Agent and the
Lenders as follows:

(a)           Borrower and Guarantors are each duly
authorized and empowered to execute, deliver and perform this Amendment and all
other instruments referred to or mentioned herein to which it is a party, and
all action on its part requisite for the due execution, delivery and the
performance of this Amendment has been duly and effectively taken.  This Amendment, when executed and delivered,
will constitute valid and binding obligations of Borrower and Guarantors, as
the case may be, enforceable against such party in accordance with its terms.
This Amendment does not violate any provisions of the formation, charter or
operating documents of Borrower or any Guarantor, or any contract, agreement,
Law or regulation to which Borrower or Guarantors are subject, and does not
require the consent or approval of any Governmental Authority.

(b)           After giving affect to this
Amendment, the representations and warranties contained in the Credit
Agreement, as amended hereby, and any other Loan Document executed in
connection herewith or therewith, are true, correct and complete on and as of
the date hereof as though made on and as of the date hereof.

(c)           After giving affect
to this Amendment, no event has occurred and is continuing which constitutes a
Default or an Event of Default.

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5.             Reference
to and Effect on the Loan Documents.

(a)           Upon the satisfaction of the
conditions contained in Section 3 hereof each reference in the Credit Agreement
to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import,
and each reference in the Loan Documents shall mean and be a reference to the
Credit Agreement as amended hereby.

(b)           Except as specifically amended above,
the Credit Agreement, the Note, and all other instruments securing or
guaranteeing the obligations of Borrower and Guarantors to the Lenders,
including the Collateral Documents, as amended (collectively, the “Security
Instruments”), shall remain in full force and effect and are hereby ratified
and confirmed.  Without limiting the
generality of the foregoing, the Security Instruments and all collateral
described therein do and shall continue to secure the payment of all obligations
of Borrower and Guarantors under the Credit Agreement, as amended hereby, and
the Note, and under the other Security Instruments.

(c)           Each of Guarantors hereby expressly
(i) acknowledges the terms of this Amendment; (ii) ratifies and affirms its
obligations under its Guaranty previously executed in connection with the
Credit Agreement, in favor of the Administrative Agent and the Lenders; (iii)
acknowledges, renews and extends its continued unconditional liability under
its Guaranty and agrees that its Guaranty remains in full force and effect; and
(iv) guarantees to the Administrative Agent and the Lenders to promptly pay
when due all amounts owing or to be owing by it under its Guaranty pursuant to
the terms and conditions thereof.

(d)           The execution, delivery and
effectiveness of this Amendment shall not operate as a waiver of any right,
power or remedy of Lender under any of the Security Instruments, nor constitute
a waiver of any provision of any of the Security Instruments.

6.             Waiver.  As
additional consideration for the execution, delivery and performance of this
Amendment by the parties hereto and to induce the Administrative Agent and the
Lenders to enter into this Amendment, Borrower and Guarantors each warrant and
represent to the Administrative Agent and the Lenders that no facts, events, or
conditions exist or have existed which, either now or with the passage of time
or giving of notice, or both, constitute or will constitute a basis for any
claim or cause of action against the Administrative Agent or the Lenders or any
defense to (i) the payment of any obligations and indebtedness under the Credit
Agreement, the Note, the Security Instruments or any other Loan Document, or
(ii) the performance of any of its obligations with respect thereto, and in the
event any such facts, events, statuses or conditions exist or have existed,
Borrower and Guarantors each unconditionally and irrevocably waive any and all
claims and causes of action against the Administrative Agent and/or the Lenders
and any defenses to its respective payment and performance obligations arising
out of or related to the Credit Agreement, the Notes, the Security Instruments
or any other Loan Document arising prior to the date of this Amendment.

7.             Costs and Expenses.  Borrower and Guarantors agree to pay on
demand all costs and expenses of the Administrative Agent or the Lenders in
connection with the preparation, 

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reproduction,
execution and delivery of this Amendment and the other instruments and
documents to be delivered hereunder, including the reasonable fees and out-of-pocket
expenses of counsel for the Administrative Agent or the Lenders.  In addition, Borrower and Guarantors shall
pay any and all fees payable or determined to be payable in connection with the
execution and delivery, filing or recording of this Amendment and the other
instruments and documents to be delivered hereunder, and agrees to save
Administrative Agent and the Lenders harmless from and against any and all
liabilities with respect to or resulting from any delay in paying or omitting
to pay such fees.

8.             Miscellaneous.

(a)           Captions.  Section captions used in this Amendment are
for convenience only, and shall not affect the construction of this Amendment.

(b)           Governing Law.  This Amendment shall be a contract made under
and governed by the laws of the State of Texas. 
Whenever possible each provision of this Amendment shall be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of this Amendment shall be prohibited by or invalid under such law,
such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Amendment.

(c)           Counterparts.  This Amendment may be executed in any number
of counterparts and by the different parties on separate counterparts, and each
such counterpart shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same Amendment.

(d)           Successors and Assigns.  This Amendment shall be binding upon
Borrower, Guarantors, Administrative Agent and the Lenders and their respective
successors and assigns, and shall inure to the sole benefit of Borrower,
Guarantors, Administrative Agent and the Lenders and their respective
successors and assigns.

 

[Remainder of Page
Intentionally Left Blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be duly executed as of the day and year first above written.

	
  

  	
  BORROWER:

  
	
   

  	
   

  	
   

  
	
   

  	
  WARREN RESOURCES, INC.,

  
	
   

  	
  a Maryland corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Norman F. Swanton

  
	
   

  	
   

  	
  Norman F. Swanton,

  
	
   

  	
   

  	
  Chairman & Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  GUARANTORS:

  
	
   

  	
   

  	
   

  
	
   

  	
  WARREN RESOURCES OF CALIFORNIA, INC.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Norman F. Swanton

  
	
   

  	
   

  	
  Norman F. Swanton,

  
	
   

  	
   

  	
  Chairman & President

  
	
   

  	
   

  	
   

  
	
   

  	
  WARREN E&P, INC.,

  
	
   

  	
  a New Mexico corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  David E. Fleming

  
	
   

  	
   

  	
  David E. Fleming

  
	
   

  	
   

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  ADMINISTRATIVE AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
  JP MORGAN CHASE BANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Jeffrey D. Cheatham

  
	
   

  	
  Name: Jeffrey D. Cheatham

  
	
   

  	
  Title: Associate

  

 

Signature
Page

to First Amendment to Credit Agreement

 

 

	
  

  	
  LENDERS:

  
	
   

  	
   

  
	
   

  	
  JP MORGAN CHASE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Jeffrey D. Cheatham

  
	
   

  	
  Name: Jeffrey D. Cheatham

  
	
   

  	
  Title: Associate

  
	
   

  	
   

  	
   

  
	
   

  	
  BMO CAPITAL MARKETS FINANCING, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Mary Lou Allen

  
	
   

  	
  Name: Mary Lou Allen

  
	
   

  	
  Title: Vice President

  

 

Signature
Page

to First Amendment to Credit Agreement

 

SCHEDULE 2.01

Commitments

	
  JPMorgan Chase Bank, N.A.

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  BMO Capital Markets Financing, Inc.

  	
   

  	
  $

  	
  10,000,000EXHIBIT
10.1

MEDICALCV, INC.

NON-EMPLOYEE
DIRECTOR COMPENSATION POLICY

Effective July 1, 2007, cash compensation for service
on the Board of Directors is as follows:

Annual
Cash Compensation

	
  Board Member (other than Board Chair)

  	
   

  	
  $

  	
  10,000

  	
   

  
	
  Board Chair

  	
   

  	
  $

  	
  24,000

  	
   

  
	
  Audit Committee Member (other than Audit
  Committee Chair)

  	
   

  	
  $

  	
  1,500

  	
   

  
	
  Audit Committee Chair 

  	
   

  	
  $

  	
  4,000

  	
   

  
	
  Compensation Committee Member (other than
  Compensation Committee Chair)

  	
   

  	
  $

  	
  1,000

  	
   

  
	
  Compensation Committee Chair

  	
   

  	
  $

  	
  1,500

  	
   

  
	
  Corporate Governance and Nominating Committee
  Member (other than Corporate

  	
   

  	
   

  	
   

  
	
  Governance and Nominating Committee Chair)

  	
   

  	
  $

  	
  1,000

  	
   

  
	
  Corporate Governance and Nominating Committee
  Chair

  	
   

  	
  $

  	
  1,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Board Meeting Fee (in person) 

  	
   

  	
  $

  	
  1,500

  	
   

  
	
  Board Meeting Fee (telephonic) 

  	
   

  	
  $

  	
  500

  	
   

  
	
  Committee Meeting Fee (in person)  

  	
   

  	
  $

  	
  500

  	
   

  
	
  Committee
  Meeting Fee (telephonic) 

  	
   

  	
  $

  	
  500

  	
   

  

 

Effective upon shareholder approval at the 2007 Annual
Meeting of proposed amendments to the 2005 Director Stock Option Plan, equity
compensation for service on the Board of Directors will be as follows:

Equity
Compensation

Under the 2005 Director Stock Option Plan, each year,
as of the date of the annual meeting of shareholders of the Company, each
non-employee director who has been elected or reelected or who is continuing as
a member of the Board as of the adjournment of the annual meeting,
automatically receives an option award in the amount of 10,000 shares.  In
addition, each non-employee director who is elected to the Board other than at
an annual meeting of shareholders of the Company automatically receives an
initial option award in the amount of 10,000 shares.  The date of such
initial award shall be the date of election of such person to the Board.

Amended
and Restated August 16, 2007

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