EDGE PETROLEUM CORP
EX-10.1
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>a08-10026_1ex10d1.htm
<DESCRIPTION>EX-10.1
<TEXT>

<html>

<head>





</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit&nbsp;10.1</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-decoration:underline;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECOND AMENDED AND
RESTATED SEVERANCE AGREEMENT</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This
<b>Second Amended and Restated</b></font><b><font size="2" style="font-size:10.0pt;font-weight:bold;"> Severance Agreement </font></b><font size="2" style="font-size:10.0pt;">between <b>Edge
Petroleum Corporation</b>, a Delaware Corporation (the &#147;Company&#148;), and
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(&#147;Employee&#148;).</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WITNESSETH:</font></u></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b><font size="2" style="font-size:10.0pt;">, the Company previously entered into a
Severance Agreement because it desired to retain certain employee personnel
and, accordingly, the Board of Directors of the Company (the <b>&#147;Board&#148;</b>) approved the Company entering into a severance
agreement with Employee in order to encourage such employee&#146;s continued service
to the Company; and</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b><font size="2" style="font-size:10.0pt;">, Employee previously committed such
services in return for specific arrangements with respect to severance
compensation and other benefits; and</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b><font size="2" style="font-size:10.0pt;">, effective immediately, the Company and
Employee desire to amend and restate the Severance Agreement to establish
documentary compliance with Section&nbsp;409A of the Internal Revenue Code of
1986, as amended;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOW THEREFORE</font></b><font size="2" style="font-size:10.0pt;">, in consideration of the foregoing and
for other good and valuable consideration, the Company and Employee agree as
follows:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Definitions</font></u></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 56.15pt;text-indent:-27.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">&#147;Change in Duties</font></b><font size="2" style="font-size:10.0pt;"> &#147;shall mean the occurrence, within two
years after the date upon which a Change of Control occurs, of any one or more
of the following conditions provided that the Employee has notified the Company
of the existence of such condition within 90 days of its initial existence and
the Company has not cured the condition within 30 days after such notice is
provided (the &#147;Correction Period&#148;):</font></p>

<p style="margin:0in 0in .0001pt 56.15pt;text-indent:-27.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 87.8pt;text-indent:-29.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">A significant reduction in the duties of
Employee from those applicable to the Employee immediately prior to the date on
which a Change of Control occurs; or</font></p>

<p style="margin:0in 0in .0001pt 87.8pt;text-indent:-29.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 87.8pt;text-indent:-29.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">A material reduction in Employee&#146;s annual
salary from that provided to the Employee immediately prior to the date on
which a Change of Control occurs; or</font></p>

<p style="margin:0in 0in .0001pt 87.8pt;text-indent:-29.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 87.8pt;text-indent:-29.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">A change in the location of Employee&#146;s principal place
of employment by the Company by more than 50 miles from the location where he
or she was principally employed immediately prior to the date on which a Change
of Control occurs.</font></p>

<p style="margin:0in 0in .0001pt 85.5pt;text-indent:-31.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105534\08-10026-1\task2839792\10026-1-ke.htm',USER='105534',CD='Apr  4 11:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">&#147;Change of Control&#148;</font></b><font size="2" style="font-size:10.0pt;"> means the occurrence of either of the
following events:</font></p>

<p style="margin:0in 0in .0001pt .2in;text-indent:.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.2in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Company (A)&nbsp;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)&nbsp;is to be dissolved and liquidated, and
as a result of or in connection with such transaction, the persons who were
directors of the Company before such transaction shall cease to constitute a
majority of the Board;</font></p>

<p style="margin:0in 0in .0001pt 1.2in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.2in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Any person or entity, including a &#147;group&#148;
as contemplated by Section&nbsp;13(d)(3)&nbsp;of the Securities Exchange Act of
1934, as amended, acquires or gains ownership or control (including, without
limitation, power to vote) of 20% or more of the outstanding shares of the
Company&#146;s voting stock (based upon voting power), and as a result of or in
connection with such transaction, the persons who were directors of the Company
before such transaction shall cease to constitute a majority of the Board; or</font></p>

<p style="margin:0in 0in .0001pt 1.2in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.2in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Company sells all or substantially all of the
assets of the Company to any other person or entity (other than a wholly-owned
subsidiary of the Company) in a transaction that requires shareholder approval
pursuant to the Texas Business Corporation Act.</font></p>

<p style="margin:0in 0in .0001pt 1.2in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">&#147;Code&#148;</font></b><font size="2" style="font-size:10.0pt;"> shall mean the Internal Revenue Code of
1986, as amended.</font></p>

<p style="margin:0in 0in .0001pt .2in;text-indent:.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">&#147;Compensation&#148;</font></b><font size="2" style="font-size:10.0pt;"> shall mean the greater of:</font></p>

<p style="margin:0in 0in .0001pt .2in;text-indent:.2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.2in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Employee&#146;s current annual salary plus his
or her Targeted Bonus Opportunity immediately prior to the date on which a
Change of Control occurs, or</font></p>

<p style="margin:0in 0in .0001pt 1.2in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.2in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Employee&#146;s current annual salary plus his
or her Targeted Bonus Opportunity at the time of his or her Involuntary
Termination.</font></p>

<p style="margin:0in 0in .0001pt 1.2in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">&#147;Incentive Award&#148; </font></b><font size="2" style="font-size:10.0pt;">shall mean any grant or award of
restricted stock, stock options or other benefits or awards made to an Employee
under the Incentive Award Plan.</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-30.6pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">&#147;Incentive Award Plan&#148;</font></b><font size="2" style="font-size:10.0pt;"> shall mean Edge Petroleum Corporation
1997 Incentive Plan, as amended, or any successor thereto.</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">&#147;Involuntary Termination&#148;</font></b><font size="2" style="font-size:10.0pt;"> shall mean any termination of Employee&#146;s
employment with the Company which:</font></p>

<p style="margin:0in 0in .0001pt .8in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.2in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">does not result from a resignation by
Employee (other than a resignation pursuant to Clause (ii)&nbsp;of this
paragraph (g)&nbsp;or a resignation at the request of the Company; or</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\105534\08-10026-1\task2839792\10026-1-ke.htm',USER='105534',CD='Apr  4 11:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 85.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">results from a resignation by Employee on
or before the date which is thirty days after the expiration of the Correction
Period associated with a Change in Duties; provided, however, the term <b>&#147;Involuntary</b>  <b>Termination&#148;</b>
shall not include a Termination for Cause or any termination as a result of
death, disability under circumstances entitling him to benefits under the
Company&#146;s long-term disability plan.</font></p>

<p style="margin:0in 0in .0001pt 85.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 49.7pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">&#147;Severance Amount&#148;</font></b><font size="2" style="font-size:10.0pt;"> shall mean an amount equal to <b>2.00</b> times Employee&#146;s Compensation.</font></p>

<p style="margin:0in 0in .0001pt 58.5pt;text-indent:-27.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 49.5pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">&#147;Targeted</font></b><font size="2" style="font-size:10.0pt;">  <b>Bonus
Opportunity</b>&#148; shall mean the Employee&#146;s current targeted bonus
opportunity, if any, as approved by the Compensation Committee effective for
the year with respect to which such targeted bonus opportunity, if any, is
being determined or for the last year for which such an opportunity was so
approved if one has not been approved for the current year, expressed as a
dollar amount.</font></p>

<p style="margin:0in 0in .0001pt 49.5pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 49.5pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j</font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">)</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">&#147;Termination for Cause&#148;</font></b><font size="2" style="font-size:10.0pt;"> shall mean termination of Employee&#146;s
employment by the Company (or its subsidiaries) by reason of (a)&nbsp;conviction
of the Employee by a court of competent jurisdiction of any felony or a crime
involving moral turpitude; (b)&nbsp;the Employee&#146;s knowing failure or refusal
to follow reasonable instructions of the Board or reasonable policies,
standards and regulations of the Company or its subsidiaries as set forth in
the employee manual or otherwise; (c)&nbsp;the Employee&#146;s continued failure or
refusal to faithfully and diligently perform the usual, customary duties of his
or her employment with the Company or a subsidiary; (d)&nbsp;the Employee
continuously conducting himself or herself in an unprofessional, unethical,
immoral or fraudulent manner; or (e)&nbsp;the Employee&#146;s conduct discredits the
Company or a subsidiary or is detrimental to the reputation, character and
standing of the&#160; Company or a subsidiary.</font></p>

<p style="margin:0in 0in .0001pt 49.5pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 49.5pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">&#147;Welfare Benefit Coverages&#148;</font></b><font size="2" style="font-size:10.0pt;"> shall mean the current medical, dental,
life insurance, and accidental death and dismemberment coverages provided by
the Company to its active employees.</font></p>

<p style="margin:0in 0in .0001pt 49.5pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .6in;text-indent:-.6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Services.</font></u></b><font size="2" style="font-size:10.0pt;">&#160;
Employee agrees that he or she will render services to the Company (as
well as any subsidiary thereof or successor thereto) during the period of his
or her employment to the best of his or her ability and in a prudent and
businesslike manner.</font></p>

<p style="margin:0in 0in .0001pt .6in;text-indent:-.6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .6in;text-indent:-.6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Severance Benefits.</font></u></b><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">If Employee&#146;s employment by the Company or any
subsidiary thereof or successor thereto shall be subject to an Involuntary
Termination which occurs within two years after the date upon which a Change of
Control occurs, then Employee shall be entitled to receive, as additional
compensation for services rendered to the Company (including its subsidiaries),
the following severance benefits:</font></p>

<p style="margin:0in 0in .0001pt .6in;text-indent:-.6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">A lump sum cash payment in an amount
equal to Employee&#146;s Severance Amount.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Effective as of the date of Involuntary
Termination, Employee shall become fully vested in all outstanding Incentive
Awards that had not previously vested or </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\105534\08-10026-1\task2839792\10026-1-ke.htm',USER='105534',CD='Apr  4 11:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">otherwise become
exercisable as of such date due to restrictions or other provisions contained
in the document granting such Incentive Award, such restrictions or other
provisions in such document notwithstanding.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Employee shall be entitled to continue
the Welfare Benefit Coverages for himself and, where applicable, his eligible
dependents following his Involuntary Termination for up to thirty-six months,
as long as Employee continues either to pay the premiums paid by active
employees of the Company for such coverages or to pay the actual
(nonsubsidized) cost of such coverages for which the Company does not subsidize
for active employees.&#160; Such benefit
rights shall apply only to those Welfare Benefit Coverages which the Company
has in effect from time to time for active employees, and the applicable
payments shall adjust as premiums for active employees of the Company or actual
costs, whichever is applicable, change.&#160;
Welfare Benefit Coverage(s)&nbsp;shall immediately end upon Employee&#146;s
obtainment of new employment and eligibility for similar Welfare Benefit
coverage(s)&nbsp;(with Employee being obligated hereunder to promptly report
such eligibility to the Company).&#160;
Nothing herein shall be deemed to adversely affect in any way the
additional rights, after consideration of this extension period, of Employee
and his eligible dependents to health care continuation coverage as required
pursuant to Part&nbsp;6 of Title I of the Employment Retirement Income Security
Act of 1974, as amended.&#160; All
reimbursements or provision of in-kind benefits pursuant to this Agreement
shall be made in accordance with Treasury Regulations &#167;1.409A-3(i)(1)(iv)&nbsp;such
that the reimbursement or provision will be deemed payable at a specified time
or on a fixed schedule relative to a permissible payment event.&#160; Specifically, the amount reimbursed or
provided under this Section&nbsp;3(c)&nbsp;hereof during the Employee&#146;s taxable
year may not affect the amounts reimbursed or provided in any other taxable
year (except that total reimbursements may be limited by a lifetime maximum
under a group health plan), the reimbursement of an eligible expense shall be
made on or before the last day of the Employee&#146;s taxable year following the
taxable year in which the expense was incurred, and the right to reimbursement
or provision of in-kind benefit is not subject to liquidation or exchange for
another benefit.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Employee shall be entitled to receive
reimbursement for out-placement services incurred before the end of the second
calendar year following Employee&#146;s Involuntary Termination in connection with
obtaining new employment up to a maximum cost of $6,000, if Employee is seeking
new employment.&#160; Such reimbursement shall
be paid within 90 days of the Company&#146;s receipt of Employee&#146;s request for
reimbursement including any required documentation of expenses.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-31.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The severance benefits payable under this
agreement shall be paid to the Employee on or before the fifth day after the
last day of Employee&#146;s employment with the Company.&#160; Any severance benefits paid pursuant to this
paragraph will be deemed to be a severance payment and not compensation for the
purposes of </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\105534\08-10026-1\task2839792\10026-1-ke.htm',USER='105534',CD='Apr  4 11:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 103.7pt;text-indent:-31.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">determining
benefits under the Company&#146;s qualified plans and shall be subject to any
required tax withholding.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-31.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .6in;text-indent:-.6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Interest on Late Benefit
Payments.</font></u></b><font size="2" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;If
any payment provided for in Paragraph 3(a)&nbsp;or 3(b)&nbsp;hereof is not made
when due, the Company shall pay to Employee interest on the amount payable from
the date that such payment should have been made under such paragraph until
such payment is made, which interest shall be calculated at a rate equal to two
percentage points over the prime or base rate of interest announced by Chase
Bank of Texas, N.A. or any successor thereto, at its principal office in
Houston, Texas and shall change when and as such change in such prime or base
rate shall be announced by such bank.</font></p>

<p style="margin:0in 0in .0001pt .6in;text-indent:-.6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .6in;text-indent:-.6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Certain Additional
Payments by the Company.</font></u></b><font size="2" style="font-size:10.0pt;">&nbsp;&nbsp;&nbsp;Notwithstanding anything to the
contrary in this Agreement, in the event that any payment or distribution by the
Company to or for the benefit of Employee, whether paid or distributed or
distributable pursuant to the terms of this Agreement or otherwise (a &#147;Payment&#148;),
would be subject to the excise tax imposed by Section&nbsp;4999 of the Code or
any interest or penalties with respect to such excise tax (such excise tax,
together with any such interest or penalties, are hereinafter collectively
referred to as the &#147;Excise Tax&#148;), the Company shall pay to Employee an
additional payment (a &#147;Gross-up Payment&#148;) in an amount such that after payment
by Employee of all taxes (including an interest or penalties imposed with
respect to such taxes), including any Excise Tax imposed on any Gross-up
Payment, Employee retains an amount of the Gross-up Payment equal to the Excise
Tax imposed upon the payment.&#160; The
Company and Employee shall make an initial determination as to whether a
Gross-up Payment is required and the amount of any such Gross-up Payment.
Employee shall notify the Company in writing of any claim by the Internal
Revenue Service which, if successful, would require the Company to make a
Gross-up Payment (or a Gross-up Payment in excess of that, if any, initially
determined by the Company and Employee) within ten days of the receipt of such
claim.&#160; The Company shall notify Employee
in writing at least ten days prior to the due date of any response required
with respect to such claim if it plans to contest the claim.&#160; The Gross-up Payment to Employee shall be
made no earlier than the date of the Payment to which such Gross-up Payment
relates and no later than December&nbsp;31 of the year following the year
during which Employee remits the related taxes.&#160;
If the Company decides to contest such claim, Employee shall cooperate
fully with the Company in such action; provided, however, the Company shall
bear and pay directly or indirectly all cost and expenses (including additional
interest and penalties) incurred in connection with such action and shall
indemnify and hold Employee 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 the Company&#146;s action.&#160; If,
as a result of the Company&#146;s action with respect to a claim, Employee receives
a refund of any amount paid by the Company with respect to such claim, Employee
shall promptly pay such refund to the Company.&#160;
If the Company fails to timely notify Employee whether it will contest
such claim or the Company determines not to contest such claim, then the Company
shall immediately pay to Employee the portion of such claim, if any, which it
has not previously paid to Employee.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='5',FILE='C:\JMS\105534\08-10026-1\task2839792\10026-1-ke.htm',USER='105534',CD='Apr  4 11:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">General.</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Term.</font></u></b><font size="2" style="font-size:10.0pt;">&#160;
The original effective date of this Agreement was &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.&#160; The initial term of this Agreement shall be
the period beginning on said effective date and ending on the two-year
anniversary of said effective date.&#160;
Within sixty days after the expiration of this Agreement and within
sixty days after each successive two-year period of time thereafter that this
Agreement is in effect, the Company shall have the right to review this
Agreement, and in its sole discretion either continue and extend this
Agreement, terminate this Agreement, and/or offer Employee a different
agreement, and will notify Employee of such action before the end of said
sixty-day time period mentioned above.&#160;
This Agreement shall remain in effect until so terminated and/or
modified by the Company.&#160; Failure of the
Company at any time and from time to time to take any action within any of said
sixty-day time periods shall be considered as an extension of this Agreement
for an additional two-year period of time.&#160;
Notwithstanding anything to the contrary contained in this <b>&#147;sunset provision,&#148;</b> it is agreed that if a Change of Control
occurs while this Agreement is in effect, then this Agreement shall not be
subject to termination or modification under this <b>&#147;sunset</b>
<b>provision,&#148;</b> and shall remain in force
for a period of two years after such Change of Control, and if within said two
years the contingency factors occur which would entitle Employee to the
benefits as provided herein, this Agreement shall remain in effect in
accordance with its terms.&#160; If, within
such two years after a Change of Control, the contingency factors that would entitle
Employee to said benefits do not occur, thereupon this two-year <b>&#147;sunset provision&#148;</b> shall again be applicable with the
sixty-day time period for Company action (to either continue, extend, terminate
or offer Employee different agreement shall thereafter commence at the
expiration of said two years after such Change of Control and on each two-year
anniversary date thereafter.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Indemnification.</font></u></b><font size="2" style="font-size:10.0pt;">&#160;
If Employee shall obtain any money judgment or otherwise prevail with
respect to any litigation brought by Employee or the Company to enforce or
interpret any provision contained herein, the Company, to the fullest extent
permitted by applicable law, hereby indemnifies Employee for his or her
reasonable attorneys&#146; fees and disbursements incurred in such litigation and
hereby agrees (i)&nbsp;to pay in full all such fees and disbursements and (ii)&nbsp;to
pay prejudgment interest on any money judgment obtained by Employee from the
earliest date that payment to Employee should have been made under this
Agreement until such judgment shall have been paid in full, which interest
shall be calculated at a rate equal to two percentage points over the prime or
base rate of interest announced by Chase Bank of Texas, N.A. (or any successor
thereto) at its principal office in Houston, Texas, and shall change when and
as any such change in such prime or base rate shall be announced by such bank.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Payment Obligations
Absolute.</font></u></b><font size="2" style="font-size:10.0pt;">&#160; The Company&#146;s obligation to pay (or cause one
of its subsidiaries to pay) Employee the amounts and to make the arrangements </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='6',FILE='C:\JMS\105534\08-10026-1\task2839792\10026-1-ke.htm',USER='105534',CD='Apr  4 11:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">provided herein shall be absolute and unconditional
and shall not be affected by any circumstances, including, without limitation,
any set-off, counterclaim, recoupment, defense or other right which the Company
(including its subsidiaries) may have against the Employee or anyone else.&#160; All amounts payable by the Company (including
its subsidiaries hereunder) shall be paid without notice or demand.&#160; Employee shall not be obligated to seek other
employment in mitigation of the amounts payable or arrangements made under any
provision of this Agreement, and, except as provided in Paragraph 3 (c)&nbsp;hereof,
the obtaining of any such other employment shall in no event effect any
reduction of the Company&#146;s obligations to make (or cause to be made) the
payments and arrangements required to be made under this Agreement.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Successors.</font></u></b><font size="2" style="font-size:10.0pt;">&#160;
This Agreement shall be binding upon and inure to the benefit of the
Company and any successor of the Company, by merger, combination, asset sale or
otherwise.&#160; This Agreement shall also be
binding upon and inure to the benefit of Employee and his or her estate.&#160; If Employee shall die prior to full payment
of amounts due pursuant to this Agreement, such amounts shall be payable
pursuant to the terms of this Agreement to his or her estate.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-40.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Severability.</font></u></b><font size="2" style="font-size:10.0pt;">&#160; Any provision in this Agreement which is
prohibited or</font><font size="2" style="font-size:10.0pt;">
un-enforceable in any jurisdiction by reason of applicable law shall, as to
such jurisdiction, be ineffective only to the extent of such prohibition or
unenforceability without invalidating or affecting the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.</font></p>

<p style="margin:0in 0in .0001pt 69.0pt;text-indent:-37.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Non-Alienation.</font></u></b><font size="2" style="font-size:10.0pt;">&#160;
Employee shall not have any right to pledge, hypothecate, anticipate or
assign this Agreement or the rights hereunder, except by will or the laws of
descent and distribution.</font></p>

<p style="margin:0in 0in .0001pt 69.0pt;text-indent:-37.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Notices.</font></u></b><font size="2" style="font-size:10.0pt;">&#160;
Any notices or other communications provided for in this Agreement shall
be sufficient if in writing.&#160; In the case
of Employee, such notices or communications shall be effectively delivered if
hand delivered to Employee at his or her principal place of employment or if
sent by registered or certified mail to Employee at the last address he or she
has filed with the Company.&#160; In the case
of the Company, such notices or communications shall be effectively delivered
if sent by registered or certified mail to the Company at its principal
executive offices.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Controlling Law.</font></u></b><font size="2" style="font-size:10.0pt;">&#160;
This Agreement shall be governed by, and construed in accordance with,
the laws of the State of Texas.&#160; Further,
Employee agrees that any legal proceeding to enforce the provisions of this
Agreement shall be brought in Houston, Harris County, Texas, and hereby waives
the right to any pleas regarding subject matter or personal jurisdiction and
venue.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='7',FILE='C:\JMS\105534\08-10026-1\task2839792\10026-1-ke.htm',USER='105534',CD='Apr  4 11:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Release</font></u></b><font size="2" style="font-size:10.0pt;">.&nbsp;&nbsp;Any benefit payable pursuant
to Section&nbsp;3 herein is subject to Employee&#146;s execution of a release,
without subsequent revocation, within 60 days of Employee&#146;s termination, in the
form established by the Company, releasing the Company, its shareholders,
partners, officers, directors, employees and agents from any and all claims and
from any and all causes of action of any kind or character (except claims
arising under this Agreement), including but not limited to all claims or
causes of action arising out of Employee&#146;s employment with the Company or, with
the exception of rights provided in any other written agreement between the
Company and Employee, the termination of such employment.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Full Settlement.</font></u></b><font size="2" style="font-size:10.0pt;">&#160;
If Employee is entitled to and receives the benefits provided hereunder,
performance of the obligations of the Company hereunder will constitute full
settlement of all claims that Employee might otherwise assert against the
Company on account of Employee&#146;s termination of employment, except such claims
as may be asserted pursuant to any other agreement between the Company and
Employee.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Unfunded Obligation</font></u></b><font size="2" style="font-size:10.0pt;">.&#160;
The obligation to pay amounts under this Agreement is an unfunded
obligation of the Company (including its subsidiaries), and no such obligation
shall create a trust or be deemed to be secured by any pledge or encumbrance on
any property of the Company (including its subsidiaries).</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Not a Contract of
Employment</font></u></b><font size="2" style="font-size:10.0pt;">.&#160; This Agreement shall not be deemed to
constitute a contract of employment, nor shall any provision hereof affect (i)&nbsp;the
right of the Company (or its subsidiaries) to discharge Employee at will,
subject to the terms of any other agreement between the Company (or its
subsidiaries) and Employee, or (ii)&nbsp;the terms and conditions of any other
agreement between the Company and Employee except as provided herein.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Number and Gender.</font></u></b><font size="2" style="font-size:10.0pt;">&#160;
Wherever appropriate herein, words used in the singular shall include
the plural and the plural shall include the singular.&#160; The masculine gender where appearing herein
shall be deemed to include the feminine gender.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.6in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Counterparts.</font></u></b><font size="2" style="font-size:10.0pt;">&#160;
This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together will
constitute one and the same Agreement.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-40.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Headings.</font></u></b><font size="2" style="font-size:10.0pt;">&#160;
The headings in this Agreement are for convenience only and shall be
disregarded in construing this Agreement.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-40.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;text-indent:-.4in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u><font size="2" style="font-size:10.0pt;font-weight:bold;">Section&nbsp;409A</font></u></b><font size="2" style="font-size:10.0pt;">.&#160;
This Agreement is intended to comply with Code Section&nbsp;409A and any
ambiguous provision will be construed in a manner that is compliant with or
exempt from the application of Code Section&nbsp;409A.&#160; If any provision of this Agreement would
cause Employee to incur any additional tax or interest under Code Section&nbsp;409A
and accompanying Treasury regulations and guidance, Employer shall, after
consulting with Employee, reform such provision to comply </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='8',FILE='C:\JMS\105534\08-10026-1\task2839792\10026-1-ke.htm',USER='105534',CD='Apr  4 11:36 2008' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .9in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with Code Section&nbsp;409A, to the extent permitted
under Code Section&nbsp;409A; provided, however, that Employer agrees to
maintain, to the maximum extent practicable, the original intent and economic
benefit to Employee of the applicable provision without violating the
provisions of Code Section&nbsp;409A.&#160;
Notwithstanding any provision to the contrary in this Agreement, if
Employee is deemed on his termination date to be a &#147;specified employee&#148; within
the meaning of that term under Section&nbsp;409A(a)(2)(B)&nbsp;of the Code,
then the payments and benefits under this Agreement that are subject to Code Section&nbsp;409A
shall be made or provided (subject to the last sentence hereof) on the later of
(A)&nbsp;the payment date set forth in this Agreement or (B)&nbsp;the date that
is the earliest of (i)&nbsp;the expiration of the six-month period measured
from the date of Employee&#146;s Termination of employment or (ii)&nbsp;the date of
Employee&#146;s death (the &#147;Delay Period&#148;).&#160; Payments
subject to the Delay Period shall be paid to Employee without interest for such
delay in payment.&#160; Notwithstanding any
provision of this Agreement to the contrary, Employee acknowledges and agrees
that the Company and its employees, officers, directors, Affiliates and
Subsidiaries shall not be liable for, and nothing provided or contained in this
Agreement will be construed to obligate or cause the Company and/or its
employees, officers, directors, Affiliates and Subsidiaries to be liable for,
any tax, interest or penalties imposed on Employee related to or arising with
respect to any violation of Section&nbsp;409A.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-40.2pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, THE
PARTIES HERETO HAVE EXECUTED THIS SECOND AMENDED AND RESTATED AGREEMENT ON THE 3RD
DAY OF APRIL, 2008.</font></b></p>

<p style="font-weight:bold;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Company&#148;</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.14%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EDGE PETROLEUM CORPORATION</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:3.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="46%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:46.68%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
  John W. Elias</font></i></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:3.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">John W. Elias</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:3.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chairman, President and</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:3.46%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.68%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Employee&#148;</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" colspan="3" valign="top" style="padding:0in .7pt 0in .7pt;width:50.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="49%" valign="top" style="padding:0in .7pt 0in .7pt;width:49.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="46%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in .7pt 0in .7pt;width:46.84%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="373" style="border:none;"></td>
  <td width="25" style="border:none;"></td>
  <td width="1" style="border:none;"></td>
  <td width="349" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='9',FILE='C:\JMS\105534\08-10026-1\task2839792\10026-1-ke.htm',USER='105534',CD='Apr  4 11:36 2008' -->


</body>

</html>
</TEXT>
</DOCUMENT>
