Exhibit 99.1
STOCKHOLDER AGREEMENT
This Stockholder Agreement (this "Agreement") dated as of May 28, 2003
is between Xxxxxx Exploration Company, a Delaware corporation ("Xxxxxx"), and
those persons set forth on Exhibit A (each, a "Stockholder" and collectively,
the "Stockholders").
RECITALS
WHEREAS, Edge Petroleum Corporation, a Delaware corporation (the
"Company"), Edge Delaware Sub Inc., a Delaware corporation and a direct, wholly
owned subsidiary of the Company ("Merger Sub"), and Xxxxxx, are entering into an
Agreement and Plan of Merger dated as of the date hereof (as amended from time
to time pursuant thereto, the "Merger Agreement");
WHEREAS, each Stockholder is the record and beneficial owner of the
number of shares of common stock, par value $.01 per share, of the Company (the
"Company Common Stock") set forth opposite such Stockholder's name on Exhibit A
(such shares of Company Common Stock, together with any shares of capital stock
of the Company acquired by such Stockholder after the date hereof and during the
term of this Agreement, being collectively referred to herein as such
Stockholder's "Shares");
WHEREAS, as a condition to the willingness of Xxxxxx to enter into the
Merger Agreement, and as an inducement to it to do so, the Stockholder has
agreed for the benefit of Xxxxxx as set forth in this Agreement; and
WHEREAS, the Board of Directors of the Company has approved the
Stockholder's entering into this Agreement, the form of this Agreement and the
transactions contemplated hereby;
NOW, THEREFORE, in consideration of the foregoing, and of the
representations, warranties, covenants and agreements contained herein, the
parties hereby agree as follows (terms defined in the Merger Agreement and used
but not defined herein having the meanings assigned to such terms in the Merger
Agreement):
ARTICLE 1
COVENANTS OF THE STOCKHOLDERS
Each Stockholder hereby covenants as follows:
Section 1.1 Agreement to Vote. At any meeting of the stockholders of
the Company held prior to the earlier of (i) the Effective Time of the Merger
and (ii) the termination
of the Merger Agreement (but in no event beyond March 31, 2004) (such earlier
time being herein referred to as the "Voting Termination Date"), however called,
and at every adjournment or postponement thereof prior to the Voting Termination
Date, or in connection with any written consent of the stockholders of the
Company given prior to the Voting Termination Date, such Stockholder shall vote
or cause to be voted such Stockholder's Shares (together with (a) any additional
shares of capital stock of the Company or any securities or other property that
the Stockholder is or becomes entitled to receive from the Company by reason of
being a record holder of such number of Shares, (b) any capital stock,
securities or other property into which any such number of Shares shall have
been or shall be converted or changed, whether by amendment to the Certificate
of Incorporation of the Company, merger, consolidation, reorganization, capital
change or otherwise, (c) any additional Company Common Stock acquired by the
Stockholder as the result of the Stockholder's exercising an option, warrant or
other right to acquire shares of capital stock from the Company issued with
respect to such number of Shares (all of the foregoing hereinafter collectively
referred to as such Stockholder's "Additional Shares")) in favor of any actions
required in furtherance of the Merger Agreement, and against any transaction
involving the Company which would prevent the consummation of the Merger. Such
Stockholder shall not enter into any agreement or understanding with any person
prior to the Voting Termination Date, directly or indirectly, to vote, grant any
proxy or give instructions with respect to the voting of such Stockholder's
Shares (and any Additional Shares) in any manner inconsistent with the preceding
sentence.
Section 1.2 Proxies and Voting Agreements. Such Stockholder hereby
revokes, and otherwise agrees to take all actions necessary to revoke, any and
all previous proxies granted with respect to matters set forth in Section 1.1.
Prior to the Voting Termination Date, such Stockholder shall not, directly or
indirectly, except as contemplated hereby, grant any proxies or powers of
attorney with respect to matters set forth in Section 1.1, deposit any of such
Stockholder's Shares (or any Additional Shares) or enter into a voting agreement
with respect to any of such shares.
Section 1.3 Transfers. Nothing in this Agreement shall prevent such
Stockholder from assigning or transferring such Stockholders' Shares to any
spouse or former spouse, parent, child, trust, trust beneficiary, estate, family
partnership, partner, foundation (whether family, private or public) or
charitable organization (each, a "Permitted Transferee"), provided that such
Permitted Transferee agrees in writing to hold the transferred or assigned
Shares subject to all of the provisions of this Agreement applicable to such
Stockholder.
Section 1.4 Other Actions. Prior to the Voting Termination Date, such
Stockholder shall not take any action that would in any way restrict, limit,
impede or interfere with the performance of its obligations hereunder or the
transactions contemplated hereby or by the Merger Agreement.
2
ARTICLE 2
REPRESENTATIONS, WARRANTIES AND ADDITIONAL COVENANTS
OF THE STOCKHOLDERS
Each Stockholder represents, warrants and covenants to Parent that:
Section 2.1 Ownership. Such Stockholder is as of the date hereof the
beneficial and record owner of such Stockholder's Shares, such Stockholder has
the sole right to vote such Stockholder's Shares and there are no restrictions
on rights of disposition or other lien, pledge, security interest, charge or
other encumbrance or restriction pertaining to such Stockholder's Shares. None
of such Stockholder's Shares is subject to any voting trust or other agreement,
arrangement or restriction with respect to the voting of the such Stockholder's
Shares, and no proxy, power of attorney or other authorization has been granted
with respect to any of such Stockholder's Shares.
Section 2.2 Authority and Non-Contravention. Such Stockholder has the
right, power and authority, and such Stockholder has been duly authorized by all
necessary action (including consultation, approval or other action by or with
any other person), to execute, deliver and perform this Agreement and consummate
the transactions contemplated hereby. Such actions by such Stockholder (a)
require no action by or in respect of, or filing with, any governmental or
regulatory authority with respect to such Stockholder, and (b) do not and will
not contravene or constitute default under any provision of applicable law or
regulation or any agreement, judgment, injunction, order, decree or other
instrument binding on such Stockholder or result in the imposition of any lien,
pledge, security interest, charge or other encumbrance or restriction on any of
such Stockholder's Shares (other than as provided in this Agreement with respect
to such Stockholder's Shares).
Section 2.3 Binding Effect. This Agreement has been duly executed and
delivered by such Stockholder and is the valid and binding agreement of such
Stockholder, enforceable against such Stockholder in accordance with its terms,
except as enforcement may be limited by bankruptcy, insolvency, moratorium or
other similar laws relating to creditors' rights generally and by equitable
principles to which the remedies of specific performance and injunctive and
similar forms of relief are subject.
Section 2.4 Total Shares. Such Stockholder's Shares are the only shares
of capital stock of the Company owned beneficially or of record as of the date
hereof by such Stockholder, and such Stockholder does not have any option to
purchase or right to subscribe for or otherwise acquire any securities of the
Company (except as set forth in the footnotes to Exhibit A) and has no other
interest in or voting rights with respect to any other securities of the
Company.
3
Section 2.5 Finder's Fees. No investment banker, broker or finder is
entitled to a commission or fee from the Company, Xxxxxx or Merger Sub in
respect of this Agreement based upon any arrangement or agreement made by or on
behalf of such Stockholder, except as otherwise provided in the Merger
Agreement.
Section 2.6 Reasonable Efforts. Prior to the Voting Termination Date,
such Stockholder shall use reasonable efforts to take, or cause to be taken, all
actions, and to do, or cause to be done, and to assist and cooperate with the
Company and Xxxxxx in doing, all things necessary, proper or advisable to
consummate and make effective the Merger and the other transactions contemplated
by the Merger Agreement and this Agreement.
ARTICLE 3
REPRESENTATIONS, WARRANTIES AND COVENANTS OF XXXXXX
Xxxxxx represents, warrants and covenants to each Stockholder that:
Section 3.1 Corporate Power and Authority. Xxxxxx has all requisite
corporate power and authority to enter into this Agreement and to perform its
obligations hereunder. The execution, delivery and performance by Xxxxxx of this
Agreement and the consummation by Xxxxxx of the transactions contemplated hereby
have been duly authorized by all necessary corporate action on the part of
Xxxxxx and do not and will not contravene, or constitute a default under, any
provision of applicable law or regulation or any agreement, judgment,
injunction, order, decree or other instrument binding upon Xxxxxx.
Section 3.2 Binding Effect. This Agreement has been duly executed and
delivered by Xxxxxx and is a valid and binding agreement of Xxxxxx, enforceable
against Xxxxxx in accordance with its terms, except as enforcement may be
limited by bankruptcy, insolvency, moratorium or other similar laws relating to
creditors' rights generally and by equitable principles to which the remedies of
specific performance and injunctive and similar forms of relief are subject.
ARTICLE 4
GENERAL PROVISIONS
Section 4.1 Expenses; Attorneys' Fees. Each party hereto shall pay its
own expenses incident to preparing for, entering into and carrying out this
Agreement and the consummation of the transactions contemplated hereby. If any
action at law or in equity is necessary to enforce or interpret the terms of
this Agreement, the prevailing party shall be
4
entitled to reasonable attorneys' fees, costs and necessary disbursements, in
addition to any other relief to which such party may be entitled.
Section 4.2 Further Assurances. From time to time, at the request of
any other party, each party shall execute and deliver or cause to be executed
and delivered such additional documents and instruments and take all such
further action as may be necessary or desirable to consummate the transactions
contemplated by this Agreement.
Section 4.3 Notices. Any notice required to be given hereunder shall be
sufficient if in writing, and sent by facsimile transmission or by courier
service (with confirmation of receipt or proof of service), hand delivery or
certified or registered mail (return receipt requested and first-class postage
prepaid), addressed as follows:
(a) if to Xxxxxx:
0000 Xxxxx Xxxxxx Xxxx
Xxxxxxxx Xxxx, Xxxxxxxx 00000
Attention: Xxxxx X. Xxxxxx
Facsimile: (000) 000-0000
with a copy to:
Xxxxxx & Xxxxxx L.L.P.
0000 Xxxxxxxx Xxxx Xxxxxx
Xxxxxx, Xxxxx 00000-0000
Attention: Xxxx Early
Facsimile: (000) 000-0000
(b) if to any Stockholder, at such address or facsimile number
indicated opposite the name of such Stockholder on Exhibit A.
with a copy to the Company and its counsel:
0000 Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Xxxxxxx X. Xxxx
Facsimile: (000) 000-0000
5
Xxxxx Xxxxx L.L.P.
Xxx Xxxxx Xxxxx
000 Xxxxxxxxx
Xxxxxxx, Xxxxx 00000-0000
Attention: Xxxx X. Xxxxxx
Facsimile: (000) 000-0000
or to such other address as any party shall specify by written notice so given,
and such notice shall be deemed to have been delivered as of the date so
telecommunicated or personally delivered or three business days after so mailed.
Section 4.4 Assignment; Binding Effect; Benefit. Neither this Agreement
nor any of the rights, interests or obligations hereunder shall be assigned by
any of the parties hereto (whether by operation of law or otherwise) without the
prior written consent of the other parties. Subject to the preceding sentence,
this Agreement shall be binding upon and shall inure to the benefit of the
parties hereto and their respective successors and assigns. Notwithstanding
anything contained in this Agreement to the contrary, nothing in this Agreement,
expressed or implied, is intended to confer on any person other than the parties
hereto or their respective heirs, successors, executors, administrators and
assigns any rights, remedies, obligations or liabilities under or by reason of
this Agreement. Each Stockholder agrees that this Agreement and the obligations
hereunder shall attach to the Shares beneficially owned by such Stockholder and
shall be binding upon any person to which legal or beneficial ownership of such
shares shall pass, whether by operation of law or otherwise.
Section 4.5 Entire Agreement. This Agreement and any documents
delivered by the parties in connection herewith constitute the entire agreement
among the parties with respect to the subject matter hereof and supersede all
prior agreements and understandings among the parties with respect thereto.
Section 4.6 Amendments. This Agreement may not be amended except by an
instrument in writing signed on behalf of each of the parties hereto.
Section 4.7 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware without regard to
its rules of conflict of laws.
Section 4.8 WAIVER OF JURY TRIAL. EACH PARTY HERETO IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION ARISING OUT OF THIS AGREEMENT.
Section 4.9 Counterparts. This Agreement may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered
shall be an original, but all such counterparts shall together constitute one
and the same instrument. Each
6
counterpart may consist of a number of copies hereof each signed by less than
all, but together signed by all of the parties hereto.
Section 4.10 Headings. Headings of the Articles and Sections of this
Agreement are for the convenience of the parties only, and shall be given no
substantive or interpretative effect whatsoever.
Section 4.11 Interpretation. Unless the context otherwise requires,
words describing the singular number shall include the plural and vice versa,
and words denoting any gender shall include all genders and words denoting
natural persons shall include corporations and partnerships and vice versa.
Section 4.12 Waivers. Except as provided in this Agreement, no action
taken pursuant to this Agreement, including, without limitation, any
investigation by or on behalf of any party, shall be deemed to constitute a
waiver by the party taking such action of compliance with any representations,
warranties, covenants or agreements contained in this Agreement. The waiver by
any party hereto of a breach of any provision hereunder shall not operate or be
construed as a waiver of any prior or subsequent breach of the same or any other
provision hereunder.
Section 4.13 Severability. Any term or provision of this Agreement
which is invalid or unenforceable in any jurisdiction shall, as to that
jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement or affecting the validity or enforceability of
any of the terms or provisions of this Agreement in any other jurisdiction. If
any provision of this Agreement is so broad as to be unenforceable, the
provision shall be interpreted to be only so broad as is enforceable.
Section 4.14 Enforcement of Agreement. The parties hereto agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with its specific terms or was
otherwise breached. It is accordingly agreed that the parties shall be entitled
to an injunction or injunctions to prevent breaches of this Agreement and to
enforce specifically the terms and provisions hereof, this being in addition to
any other remedy to which they are entitled at law or in equity.
[Signature Page Follows]
7
IN WITNESS WHEREOF, Xxxxxx and the Stockholders have caused this
Agreement to be duly executed as of the day and year first above written.
XXXXXX EXPLORATION COMPANY
By: /s/ Xxxxx X. Xxxxxx
-----------------------------------------
Name: Xxxxx X. Xxxxxx
Title: President and Chief Executive Officer
STOCKHOLDERS
/s/ Xxxxxxx Xxxxxxx
--------------------------------------------
Xxxxxxx Xxxxxxx
/s/ Xxxx X. Xxxxx
--------------------------------------------
Xxxx X. Xxxxx
/s/ Xxxx Xxxxxxxxx
--------------------------------------------
Xxxx Xxxxxxxxx
/s/ Xxxxxxx X. Xxxxxxx
--------------------------------------------
Xxxxxxx X. Xxxxxxx
/s/ Xxxxxx X. Xxxxxxxx
--------------------------------------------
Xxxxxx X. Xxxxxxxx
/s/ Xxxxxx X. Shower
--------------------------------------------
Xxxxxx X. Shower
/s/ Xxxxx X. Work
--------------------------------------------
Xxxxx X. Work
EDGE HOLDING COMPANY, L.P.
By: Napamco, Ltd., its general partner
By: /s/ Xxxx Xxxxxxxxx
---------------------------------
Name: Xxxx Xxxxxxxxx
-------------------------------
Title: President
------------------------------
/s/ Xxxxxxx X. Xxxxxxx
--------------------------------------------
Xxxxxxx X. Xxxxxxx, Trustee of the Trade
Consultants Inc. Pension Plan
/s/ Xxxxxxx X. Xxxxxxx
--------------------------------------------
Xxxxxxx X. Xxxxxxx, Trustee of the Xxxxxxx
Xxxxxxx Trust
TRADE CONSULTANTS, INC.
By: /s/ Xxxxxxx X. Xxxxxxx
----------------------------------------
Name: Xxxxxxx X. Xxxxxxx
--------------------------------------
Title: President
-------------------------------------
EXHIBIT A
ADDRESS AND
STOCKHOLDER NUMBER OF SHARES OWNED FACSIMILE NUMBER
----------- ---------------------- ----------------
Xxxxxxx Xxxxxxx 5,000 0000 Xxxxxx Xxxxx
Xxxxxxx, XX 00000
000-000-0000
Xxxx X. Xxxxx 179,334 0000 Xxxxxxx Xxxxx
Xxxxxxx, XX 00000
000-000-0000
Xxxx Xxxxxxxxx 6,693 00 Xxxxxxxxxxx Xx.
Xxxxxxxxxx, XX 00000
000-000-0000
Xxxxxxx X. Xxxxxxx 3,837 000 Xxxxx Xxxx
Xxxxx Xxxxx, XX 00000
000-000-0000
Xxxxxx X. Xxxxxxxx 5,000 0000 Xxxxxxxxxx Xxxx.
Xxxxxx, XX 00000
000-000-0000
Xxxxxx X. Shower 5,000 0000 Xxxxx Xxxxxxxx Xxxxx
Xxxxx Xxxx, XX 00000-0000
000-000-0000
Xxxxx X. Work 3,578 00 Xxxxxxxx Xxxxx
Xxxxxxx, XX 00000
000-000-0000
Edge Holding Company, L.P. 16,637 00 Xxxxxxxxxxx Xx.
Xxxxxxxxxx, XX 00000
000-000-0000
Xxxxxxx X. Xxxxxxx, Trustee of the 103,455 0000 Xxxxxxx Xxxxxxxxx
Trade Consultants Inc. Pension Plan Xxxx Xxxxx, XX 00000
000-000-0000
Xxxxxxx X. Xxxxxxx, Trustee of the 50,986 0000 Xxxxxxx Xxxxxxxxx
Xxxxxxx Xxxxxxx Trust Xxxx Xxxxx, XX 00000
000-000-0000
Trade Consultants Inc. 15,000 0000 Xxxxxxx Xxxxxxxxx
Xxxx Xxxxx, XX 00000
000-000-0000
