Exhibit 10.1

AGREEMENT AND AMENDMENT NO. 5

This AGREEMENT AND AMENDMENT NO. 5 (“Agreement”) dated as of May 15, 2012
(“Effective Date”) is among Alta Mesa Holdings, LP, a Texas limited partnership
(“Borrower”), the affiliates of the Borrower party hereto (the “Guarantors”),
the Lenders (as defined below), and Wells Fargo Bank, N.A. as administrative
agent for such Lenders (in such capacity, the “Administrative Agent”) and as
issuing lender (in such capacity, the “Issuing Lender”).

RECITALS

A. The Borrower is party to that certain Sixth Amended and Restated Credit
Agreement dated as of May 13, 2010 among the Borrower, the lenders party thereto
from time to time (the “Lenders”), the Administrative Agent, and the Issuing
Lender, as amended by that certain Amendment No. 1 dated as of September 2,
2010, that certain Agreement and Amendment No. 2 dated as of December 6, 2010,
that certain Agreement and Amendment No. 3 dated as of May 23, 2011, and that
certain Agreement and Amendment No. 4 dated as of November 7, 2011, each among
the Borrower, the Guarantors, the Lenders, the Administrative Agent and the
Issuing Lender (as so amended, the “Credit Agreement”).

B. The parties hereto wish to, subject to the terms and conditions of this
Agreement, (i) redetermine and increase the Borrowing Base (as defined in the
Credit Agreement) and (ii) make certain other amendments to the Credit Agreement
as provided herein.

NOW THEREFORE, in consideration of the benefits to be derived by the parties
hereto and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

Section 1. Defined Terms; Other Provisions. As used in this Agreement, each of
the terms defined in the opening paragraph and the Recitals above shall have the
meanings assigned to such terms therein. Each term defined in the Credit
Agreement and used herein without definition shall have the meaning assigned to
such term in the Credit Agreement, unless expressly provided to the contrary.
Article, Section, Schedule, and Exhibit references are to Articles and Sections
of and Schedules and Exhibits to this Agreement, unless otherwise specified. The
words “hereof”, “herein”, and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement. The term “including” means “including,
without limitation,”. Paragraph headings have been inserted in this Agreement as
a matter of convenience for reference only and it is agreed that such paragraph
headings are not a part of this Agreement and shall not be used in the
interpretation of any provision of this Agreement.

Section 2. Agreement – Borrowing Base. Subject to the terms of this Agreement,
as of the Effective Date, the Borrowing Base shall be increased by $25,000,000
(the “Increase Amount”) resulting in a new Borrowing Base equal to $350,000,000.
Such Borrowing Base shall remain in effect at such level until the Borrowing
Base is redetermined in accordance with Section 2.02 of the Credit Agreement, as
amended hereby. The Borrower and the Lenders hereby acknowledge and agree that
the redetermination of the Borrowing Base set forth in this Section 2 is the
scheduled semi-annual redetermination of the Borrowing Base scheduled for
spring, 2012 under Section 2.02 of the Credit Agreement. Each Lender’s Pro Rata
Share of the redetemined Borrowing Base, after giving effect to the increase in
the Borrowing Base set forth in this Section 2, is set forth in Annex I attached
hereto.

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Section 3. Amendments to Credit Agreement. Section 6.02 (Debts, Guaranties, and
Other Obligations) of the Credit Agreement is hereby amended by (i) replacing
the amount “$12,000,000” found in clause (f) therein with the amount
“$15,000,000”, and (ii) replacing the amount “$12,000,000” found in clause
(n) therein with the amount “$15,000,000”.

Section 4. Representations and Warranties. Each of the Guarantors and the
Borrower hereby represents and warrants that: (a) after giving effect to this
Agreement, the representations and warranties contained in the Credit Agreement,
as amended hereby, and the representations and warranties contained in the other
Loan Documents are true and correct in all material respects (except that such
materiality qualifier shall not be applicable to any representation or warranty
that already is qualified or modified by materiality in the text thereof) on and
as of the Effective Date as if made on and as of such date except to the extent
that any such representation or warranty expressly relates solely to an earlier
date, in which case such representation or warranty is true and correct in all
material respects (except that such materiality qualifier shall not be
applicable to any representation or warranty that already is qualified or
modified by materiality in the text thereof) as of such earlier date; (b) no
Default has occurred which is continuing; (c) the execution, delivery and
performance of this Agreement are within the corporate, limited liability
company, or partnership power and authority of such Person and have been duly
authorized by appropriate corporate and governing action and proceedings;
(d) this Agreement constitutes the legal, valid, and binding obligation of such
Person enforceable in accordance with its terms, except as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting
the rights of creditors generally and general principles of equity; (e) there
are no governmental or other third party consents, licenses and approvals
required in connection with the execution, delivery, performance, validity and
enforceability of this Agreement; and (f) the Liens under the Security
Instruments are valid and subsisting and secure Borrower’s and the Guarantors’
obligations under the Loan Documents.

Section 5. Conditions to Effectiveness. This Agreement shall become effective on
the Effective Date and enforceable against the parties hereto upon the
occurrence of the following conditions precedent:

(a) The Administrative Agent shall have received multiple original counterparts,
as requested by the Administrative Agent, of this Agreement duly and validly
executed and delivered by duly authorized officers of the Borrower, the
Guarantors and all the Lenders.

(b) The representations and warranties in this Agreement made by the Guarantors
and the Borrower shall be true and correct in all material respects.

(c) The Borrower shall have paid, and hereby agrees to pay (i) all reasonable
fees and expenses of the Administrative Agent’s outside legal counsel and other
consultants pursuant to all invoices presented for payment on or prior to the
Effective Date, and (ii) for the account of each Lender, an amendment and
borrowing base increase fee equal to 0.40 % of the Increase Amount that is
allocated to such Lender.

Section 6. Acknowledgments and Agreements.

(a) Within 30 days following the Effective Date (or such longer period as the
Administrative Agent may determine in its sole discretion), the Administrative
Agent shall have received such title information as the Administrative Agent may
reasonably require setting forth the status of title to at least 80% of the
present value of the Proven Reserves categorized as “total proved” of the
Borrower and its Restricted Subsidiaries, as determined by the Administrative
Agent in its sole discretion, and (ii) the Administrative Agent shall have
received new Mortgages or supplements of existing mortgages which

 

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collectively encumber at least 85% of all the Borrower’s and its Restricted
Subsidiaries’ Proven Reserves and Oil and Gas Properties, and all attached
exhibits and schedules, duly executed by all the parties thereto, in form and
substance satisfactory to the Administrative Agent.

(b) The Borrower and each Guarantor acknowledges that on the date hereof all
outstanding Obligations are payable in accordance with their terms and the
Borrower and each Guarantor hereby waives any defense, offset, counterclaim or
recoupment with respect thereto.

(c) The Administrative Agent and the Lenders hereby expressly reserve all of
their rights, remedies, and claims under the Loan Documents. Nothing in this
Agreement shall constitute a waiver or relinquishment of (i) any Default or
Event of Default under any of the Loan Documents, (ii) any of the agreements,
terms or conditions contained in any of the Loan Documents, (iii) any rights or
remedies of the Administrative Agent or any Lender with respect to the Loan
Documents, or (iv) the rights of the Administrative Agent or any Lender to
collect the full amounts owing to them under the Loan Documents.

(d) Each of the parties hereto hereby adopt, ratify, and confirm the Credit
Agreement, as amended hereby, and acknowledges and agrees that the Credit
Agreement, as amended hereby, is and remains in full force and effect, and the
Borrower and the Guarantors acknowledge and agree that their respective
liabilities and obligations under the Credit Agreement, as amended hereby, and
the Guaranties, are not impaired in any respect by this Agreement.

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

(f) This Agreement is a Loan Document for the purposes of the provisions of the
other Loan Documents. Without limiting the foregoing, any breach of
representations, warranties, and covenants under this Agreement shall be a
Default or Event of Default, as applicable, under the Credit Agreement.

Section 7. Reaffirmation of the Guaranty. Each Guarantor hereby ratifies,
confirms, acknowledges and agrees that its obligations under its respective
Guaranty are in full force and effect and that such Guarantor continues to
unconditionally and irrevocably guarantee the full and punctual payment, when
due, whether at stated maturity or earlier by acceleration or otherwise, of all
of the Guaranteed Obligations (as defined in the Guaranties), as such Guaranteed
Obligations may have been amended by this Agreement, and its execution and
delivery of this Agreement does not indicate or establish an approval or consent
requirement by such Guarantor under its respective Guaranty in connection with
the execution and delivery of amendments, consents or waivers to the Credit
Agreement, the Notes or any of the other Loan Documents.

Section 8. Counterparts. This Agreement may be signed in any number of
counterparts, each of which shall be an original and all of which, taken
together, constitute a single instrument. This Agreement may be executed by
facsimile signature or other similar electronic means and all such signatures
shall be effective as originals.

Section 9. Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns permitted pursuant to the Credit Agreement.

 

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Section 10. Invalidity. In the event that any one or more of the provisions
contained in this Agreement shall for any reason be held invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision of this Agreement.

Section 11. Governing Law. This Agreement shall be deemed to be a contract made
under and shall be governed by and construed in accordance with the laws of the
State of Texas.

Section 12. Entire Agreement. THIS AGREEMENT, THE CREDIT AGREEMENT AS AMENDED BY
THIS AGREEMENT, THE NOTES, AND THE OTHER LOAN DOCUMENTS CONSTITUTE THE ENTIRE
UNDERSTANDING AMONG THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF
AND SUPERSEDE ANY PRIOR AGREEMENTS, WRITTEN OR ORAL, WITH RESPECT THERETO.

THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[SIGNATURES BEGIN ON NEXT PAGE]

 

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EXECUTED effective as of the date first above written.

 

BORROWER:     ALTA MESA HOLDINGS, LP     By:   Alta Mesa Holdings GP, LLC      
its general partner       By:  

/s/ Michael McCabe

        Michael McCabe         Chief Financial Officer GUARANTORS:     ALTA MESA
FINANCE SERVICES CORP.     ALTA MESA GP, LLC     ARI DEVELOPMENT, LLC     ALTA
MESA ACQUISITION SUB, LLC     BRAYTON MANAGEMENT GP II, LLC     CAIRN ENERGY
USA, LLC     LOUISIANA ONSHORE PROPERTIES LLC     THE MERIDIAN PRODUCTION, LLC  
  THE MERIDIAN RESOURCE, LLC     THE MERIDIAN RESOURCE &    
             EXPLORATION LLC     TMR DRILLING, LLC     VIRGINIA OIL AND GAS, LLC
    ALTA MESA HOLDINGS GP, LLC     ALTA MESA ENERGY LLC     Each by: /s/ Michael
McCabe                                                                     
Michael A. McCabe         Chief Financial Officer     ALTA MESA RESOURCES, LP  
  By:   Alta Mesa Resources GP, LLC,       its sole general partner       By:  

/s/ Michael McCabe

        Michael A. McCabe,         Chief Financial Officer

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ALTA MESA SERVICES, LP ARANSAS RESOURCES, LP BUCKEYE PRODUCTION COMPANY, LP
LOUISIANA EXPLORATION &               ACQUISITIONS, LP NAVASOTA RESOURCES, LTD.,
LLP NUECES RESOURCES, LP OKLAHOMA ENERGY ACQUISITIONS, LP TEXAS ENERGY
ACQUISITIONS, LP GALVESTON BAY RESOURCES, LP PETRO ACQUISITIONS, LP PETRO
OPERATING COMPANY, LP ORION OPERATING COMPANY, LP Each by: Alta Mesa GP, LLC By:
 

/s/ Michael McCabe

  Michael A. McCabe   Chief Financial Officer AM IDAHO LLC By:  

/s/ Michael McCabe

  Michael A. McCabe   Chief Financial Officer and Secretary BRAYTON RESOURCES,
LP By:   Brayton Management GP, LLC, its general partner By:  

/s/ Michael McCabe

  Michael A. McCabe   Chief Financial Officer BRAYTON RESOURCES II, L.P. By:  
Brayton Management GP II, LLC, its general partner By:  

/s/ Michael McCabe

  Michael A. McCabe   Chief Financial Officer PETRO ACQUISITIONS HOLDINGS, LP
By:   Petro Acquisitions Holdings GP, LLC,   its sole general partner By:  

/s/ Michael McCabe

  Michael A. McCabe,   Chief Financial Officer

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PETRO OPERATING COMPANY HOLDINGS, INC., By:  

/s/ Michael McCabe

  Michael A. McCabe   Chief Financial Officer
GALVESTON BAY RESOURCES HOLDINGS, LP, By:   Galveston Bay Resources Holdings GP,
LLC   its sole general partner By:  

/s/ Michael McCabe

  Michael A. McCabe,   Chief Financial Officer

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ADMINISTRATIVE AGENT/       ISSUING LENDER/       LENDER:     WELLS FARGO BANK,
N.A.     By:  

/s/ Michael Real

      Michael Real       Director

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LENDER:     UNION BANK, N.A.     By:  

/s/ Paul E. Cornell

    Name:  

Paul E. Cornell

    Title:  

Senior Vice President

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LENDER:     TORONTO DOMINION (NEW YORK) LLC     By:  

/s/ Debbi L. Brito

    Name:  

Debbi L. Brito

    Title:  

Authorized Signatory

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LENDER:     ING CAPITAL LLC     By:  

/s/ Charles Hall

    Name:  

Charles Hall

    Title:  

Managing Director

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LENDER:     CITIBANK, N.A.     By:  

/s/ Thomas Benavides

    Name:  

Thomas Benavides

    Title:  

Senior Vice President

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LENDER:     CAPITAL ONE, NATIONAL ASSOCIATION     By:  

/s/ Scott L. Joyce

    Name:  

Scott L. Joyce

    Title:  

Senior Vice President

 

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LENDER:     BOKF, NA d/b/a Bank of Texas     By:  

/s/ Martin W. Wilson

    Name:  

Martin W. Wilson

    Title:  

Senior Vice President

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LENDER:     AMEGY BANK NATIONAL ASSOCIATION     By:  

/s/ Mark A. Serice

    Name:  

Mark A. Serice

    Title:  

Senior Vice President

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LENDER:      TEXAS CAPITAL BANK, N.A.      By:   

/s/ Moni Collins

     Name:   

Moni Collins

     Title:   

Vice President

 

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ANNEX I

BORROWING BASE AS OF MAY 15, 2012*

 

LENDERS    PRO RATA SHARE OF THE
BORROWING BASE*      PERCENTAGE OF
TOTAL  

Wells Fargo Bank, N.A.

   $ 85,964,912.28         24.561403509 % 

Union Bank, N.A.

   $ 55,263,157.89         15.789473684 % 

Toronto Dominion (New York) LLC

   $ 41,754,385.97         11.929824561 % 

ING Capital LLC

   $ 34,385,964.91         9.824561404 % 

Citibank, N.A.

   $ 34,385,964.91         9.824561404 % 

Capital One, National Association

   $ 30,701,754.39         8.771929824 % 

BOKF, NA d/b/a Bank of Texas

   $ 30,701,754.39         8.771929824 % 

Amegy Bank National Association

   $ 18,421,052.63         5.263157895 % 

Texas Capital Bank, N.A.

   $ 18,421,052.63         5.263157895 % 

TOTAL

   $ 350,000,000.00         100 % 

 

* Borrowing Base is subject to redetermination pursuant to the terms of the
Credit Agreement, as amended.