Document:

exv10w7

Exhibit 10.7

Settlement and Release Agreement

     This Settlement and Release Agreement (this “Settlement Agreement”) is made effective
the 22nd day of December 2009 at 7:00 a.m. Central Time (the “Effective Time”) by and
between The Meridian Resource Corporation (“TMR”) (individually and on behalf of each other
Meridian Party (as defined below)), a Texas corporation with a mailing address at 1401 Enclave
Parkway, Suite 300, Houston, Texas 77077, on the one hand and Texas Oil Distribution & Development,
Inc. (“TODD”), a Texas corporation with a mailing address at 11211 Wilding Lane, Houston,
Texas 77024, JAR Resource Holdings, LLP (“JAR”), a Texas limited liability partnership with
a mailing address at 11211 Wilding Lane, Houston, Texas 77024, and Joseph A. Reeves, Jr.
(“Reeves”), a person of full age of majority with a mailing address at 11211 Wilding Lane,
Houston, Texas 77024, on the one hand. TMR, TODD, JAR and Reeves are sometimes referred to below
collectively as “Parties” and each individually as a “Party.” TODD, JAR, and
Reeves are sometimes collectively referred to as “Reeves Parties.”

Recitals

     (a) TMR-subsidiary Texas Meridian Resources Exploration, Inc. (now known as The Meridian
Resource & Exploration LLC) (“TMRX”) and TODD entered into that certain letter agreement
dated July 15, 1996 (the “Letter Agreement”), which superseded an earlier letter agreement
dated July 1, 1994, with a form of Master Participation Agreement attached as both Exhibit 1
thereto for various prospects (collectively referred to as “MPAs”). TODD has assigned to
JAR certain interests in certain wells subject to certain MPAs.

     (b) Pursuant to the MPAs, various assignments (collectively, the “Prior MPA
Assignments”) were executed by TMR, TMRX, Louisiana Onshore Properties LLC (formerly known as
Louisiana Onshore Properties LLC) (“LOPI”) and/or Cairn Energy USA, Inc. (“Cairn”)
(each along with any other subsidiary of TMR, a “Meridian Party”; and collectively with all
other subsidiaries of TMR, “Meridian Parties”) in favor of TODD (or, in certain instances
at TODD’s request, partially to TODD and partially to JAR).

     (c) TMR (then known as Texas Meridian Resources Corporation) and Reeves entered into that
certain Agreement dated June 27, 1995 but effective as of January 1, 1994 (the “Original NPI
Agreement”) concerning net profits interests to be earned by Reeves thereunder (the
“NPIs”).

     (d) Pursuant to the Original NPI Agreement, TMR, TMRX, LOPI and/or Cairn executed various
assignments of net profits interests (collectively, the “Prior NPI Assignments”) in favor
of Reeves.

     (e) TMR and Reeves entered into a Termination Agreement as of April 29, 2008 (the
“Termination Agreement”) relating to (among other things) the Original NPI Agreement, the
Prior NPI Assignments, the MPAs and the Prior MPA Assignments.

     (f) Pursuant to the Termination Agreement, TMR and Reeves entered into an “Amendment to
Agreement Dated June 27, 1995” (the “NPI Amendment”) amending the Original NPI Agreement
and Prior NPI Assignments.

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     (g) Contemporaneously with the execution and delivery of this Settlement Agreement and as a
material inducement to the Parties’ execution of this Settlement Agreement, TMR (along with TMRX,
LOPI and Cairn) and TODD are entering into an “Omnibus Agreement Relating to Assigned Interests”
relating to the Original NPI Agreement, the NPI Amendment, the Letter Agreement and the MPAs
(hereinafter referred to as the “Omnibus Agreement”). All capitalized terms used but not
defined in this Settlement Agreement shall have the same meaning as provided in the Omnibus
Agreement.

     (h) For joint interest billings through October 31, 2009 and after credit of partial payments
made by TODD, the Meridian Parties contend that TODD still owes $1,482,488.85 to one or more
Meridian Parties under joint interest billings under one or more of the Third Party Operating
Agreements and Form JOAs.

     (i) For joint interest billings through October 31, 2009 and after credit of partial payments
made by JAR, the Meridian Parties contend that JAR still owes $174,059.35 to one or more Meridian
Parties under joint interest billings under one or more of the Third Party Operating Agreements and
Form JOAs.

     (j) The combined amount the Meridian Parties contend is owed by TODD and JAR pursuant to
recitals (h) and (i) above is $1,656,548.20, which is hereafter referred to as the “MPA
Indebtedness.”

     (k) The Reeves Parties have asserted, and TMR disputes, that one or more Meridian Parties owe
various amounts to the Reeves Parties under the Original NPI Agreement with respect to production
before the Effective Time and/or with respect to the amount, if any, of his net profits interests
in certain wells and that TODD and JAR have a claim against TMRX with respect to a certain well in
which they had an interest. The Reeves Parties have also claimed certain defenses to and offsets
against the MPA Indebtedness.

     (l) For purposes of this Settlement Agreement, the following terms have the following
meanings:

     (1) The term “Claims” means any and all claims, suits, demands, disputes,
actual damages, punitive damages, fines, penalties, costs and expenses (including without
limitation for attorney fees, consultant fees and expert fees) and other loss or damage of
any kind (whether arising in contract, in tort, in equity, at law or otherwise; whether
known or unknown; whether suspected or unsuspected; and whether fixed, contingent,
conditional or otherwise).

     (2) The term “Meridian-Related Parties” means and includes, subject to the next
sentence: (i) TMR, TMRX, LOPI and Cairn; (ii) any and all other current or former
subsidiaries of TMR; (iii) any legal representative, successor or assign of any of the
foregoing entities; and (iv) the current and former employees, shareholders, directors,
managers, partners, joint venturers, co-owners, insurers, attorneys, agents and
representatives of any or all of the foregoing. Nonetheless, Meridian-Related Parties shall
not include any Reeves-Related Parties.

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     (3) The term “Reeves-Related Parties” means and includes (i) Reeves and Marilyn
Dianne Stewart Reeves; (ii) TODD, JAR and JAR Resources Corporation; (iii) any legal
representative, successor or assign of any of the foregoing persons or entities; and (iv)
the current and former employees, shareholders, directors, managers, partners, insurers,
attorneys, agents and representatives of any or all of the foregoing.

     (m) Recognizing the benefits in resolving various actual or potential disputes and after
weighing the risks of litigation against the benefits of settlement, TMR on behalf of the Meridian
Parties on the one hand and TODD, JAR and Reeves on the other hand each desire to settle and
compromise any existing and potential disputes between them on the terms and conditions set forth
below.

Agreement

     NOW, THEREFORE, in consideration of the recitals above, the provisions below and other good
and valuable consideration, the receipt and sufficiency of which each Party hereby acknowledges,
the Parties agree as follows:

     1. Credit to Reeves, TODD and JAR; payments to TMR. In complete and final settlement
and compromise of all outstanding Claims asserted by TODD, JAR and Reeves against one or more
Meridian Parties (whether under the agreements referenced above or otherwise) and as partial
consideration for the contemporaneous execution of the Omnibus Agreement, the Parties agree for
$600,000 to be credited against the MPA Indebtedness, to be paid as follows. Subject to paragraph
3 below, the outstanding balance owed under the MPAs by TODD and JARR through October 31, 2009,
after application of the $600,000 credit, is $1,056,548.20. TODD and JAR are entitled to credit
the $600,000 amongst the MPA Indebtedness in any manner they chose. As part of this Settlement
Agreement, however, TODD and JAR shall pay, within five days of the execution of this Settlement
Agreement, an additional $400,000 to further reduce the MPA Indebtedness and will bring all joint
interest billings under the MPAs (including the remaining MPA Indebtedness plus any further joint
interest billings issued after October 31, 2009) current (within 30 to 45 days) no later than the
earlier of (i) May 1, 2010 or (ii) five business days before the date of a TMR shareholder meeting
to approve the Agreement and Plan of Merger between TMR and Alta Mesa Holdings, LP.

     2. General release and settlement of Released Claims. As further consideration for
this Settlement Agreement but subject to paragraph 3 below, the Parties also agree as follows:

     (a) Release by Reeves Parties: Each of TODD, JAR and Reeves hereby forever
releases, discharges, waives and forgoes any and all Claims of any kind or nature (whether
asserted or unasserted and whether known or unknown) that such Party ever had, have, claim
or may have or in future obtain against any or all of the Meridian-Related Parties where
such Claims arose and/or accrued at or prior to the Effective Time.

     (b) Release by the Meridian Parties: TMR on behalf of each Meridian Party
forever releases, discharges, waives and forgoes any and all Claims of any kind or nature
(whether asserted or unasserted and whether known or unknown) that any Meridian Party ever
had, have, claim or may have or in future obtain against any or all of the Reeves-

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Related Parties where such Claims arose at or prior to the Effective Time. This
release and compromise shall include, without limitation, any claim any Meridian Party now
has or may have or acquire in the future against any Reeves Party, arising out of or based
upon any claim asserted against any Meridian Party by Shell Oil Company, Shell Western E&P
Inc., or any of these companies’ predecessors, successors, parent or holding companies,
subsidiaries, or related or affiliated companies or entities (hereafter “Shell
Entity” or “Shell Entities”), in which one or more Shell Entities seeks
indemnity or contribution relating to any claim asserted against any Shell Entity for
environmental or property damage occurring at or prior to the Effective Time. Thus, and by
way of illustration, if a Shell Entity seeks payment, reimbursement, contribution, or
indemnity from any Meridian Party for a cleanup, settlement, or judgment performed or paid
by a Shell Entity as a result of an environmental claim arising before the Effective Time,
this compromise and release includes any present or future claim by any Meridian Party
seeking contribution from a Reeves Party with respect to any payment, settlement, or
judgment paid by a Meridian Party to the said Shell Entity for such environmental claim.

     (c) Miscellaneous: The Claims released pursuant to this Settlement Agreement
may be referred to hereafter as “Released Claims.” Notwithstanding any other
provision in this Settlement Agreement, Released Claims do not include claims arising out of
or relating to a breach by any of the Parties of any covenant, obligation, representation or
warranty provided for under this Settlement Agreement and/or the Omnibus Agreement. Nothing
in this Settlement Agreement shall be construed as an admission of liability, fault or
breach by any Party or of any claim or defense of any Party. Each Party knowingly waives
(i) any Claim that this Settlement Agreement was induced by any misrepresentation,
nondisclosure, coercion or duress and (ii) any right to rescind or avoid this Settlement
Agreement based upon the currently existing facts, whether known or unknown.

     3. Effective Time. The Parties recognize that as the result of normal production
accounting, and payment lag, payments are currently owed to the Reeves Parties with regard to
production on which the Reeves Parties have not previously been paid as of the Effective Time of
this Settlement Agreement. Nothing in this Settlement Agreement releases the Reeves Parties
entitlement to receive such payments. With respect to calculating such payments, any payments made
to the Reeves Parties subsequent to the Effective Time with regard to production for which the
Reeves Parties have not previously been paid by the Meridian Parties, shall be paid in compliance
with the Omnibus Agreement (including without limitation the decimal interests set forth in the
exhibits attached thereto, and further including, without limitation, Exhibits 4, 7, and 8) without
regard to whether the underlying production occurred prior to the Effective Time, but in all events
subject to the provisions on paragraph 4(c) below.

     4. Audit rights. Notwithstanding anything in paragraphs 1-3 above to the contrary but
subject to paragraphs 4(a)-(c) below, (i) TODD and all applicable Meridian Parties retain and do
not release any or all audit rights for time periods after October 31, 2009 (and corresponding
rights to issue additional invoices together with the right to contest the amounts claimed in such
invoices, including for expenses incurred (or third-party invoice received by a Meridian Party)
after October 31, 2009 but before the Effective Time) under, subject to and in accordance all
applicable Third Party Operating Agreements and Form JOAs with respect to any Active MPA

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Prospect, (ii) JAR and all applicable Meridian Parties retain and do not release any or all
audit rights for time periods after October 31, 2009 (and corresponding rights to issue additional
invoices together with the right to contest the amounts claimed in such invoices, including for
expenses incurred (or third-party invoice received by a Meridian Party) after October 31, 2009 but
before the Effective Time) under, subject to and in accordance all applicable Third Party Operating
Agreements and Form JOAs with respect to any Active MPA Prospect in which JAR holds an interest and
(iii) Reeves and all applicable Meridian Parties retain and do not release any or all audit rights
for time periods after October 31, 2009 (and corresponding rights to deduct from future revenues
CHARGEABLE EXPENSES incurred (including for third-party invoice received by a Meridian Party) after
October 31, 2009 but before the Effective Time, together with the right to contest any such
deductions) under, subject to and in accordance the Original NPI Agreement as amended by the NPI
Amendment with respect to any Active NPI Prospect or Suspended NPI Prospect. Furthermore, the
Reeves Parties do not release their audit rights for purposes of insuring that payments were made
by the Meridian Parties in compliance with paragraph 3 above. For avoidance of doubt, claims
arising under this paragraph 4 are not Released Claims.

     (a) Except as provided in paragraph 4(c) below, nothing in this Settlement Agreement
shall reserve or grant to any Party the right to contest or dispute (i) that any gross
working interest or net revenue interest of TODD is other than as provided for under the
Omnibus Agreement (or any amendments thereto), (ii) that any gross working interest or net
revenue interest of JAR is other than as provided for under the Omnibus Agreement (or any
amendments thereto) and (iii) that any net profits interest of Reeves is other than as
provided for in the Omnibus Agreement (or any amendments thereto).

     (b) Nothing in this Settlement Agreement shall reserve to TODD, JAR or Reeves any claim
referenced in recitals (h)—(k) above. Without limiting the scope of the release in
paragraph 2(a) above, TODD, JAR and Reeves expressly and forever release, discharge, waive
and forgo any and all such claims.

     (c) Notwithstanding Exhibit 4 to the Omnibus Agreement, the Parties agree that, in
compromise of their disputes, the net profits interests of Reeves for those wells listed on
Exhibit 1 hereto shall be treated as 1.5% of 8/8ths for all production at or before October
31, 2009.

     5. Representations by TODD, JAR and Reeves. Each of TODD, JAR and Reeves represents
and warrants as follows:

     (a) Such Party is duly authorized to execute and deliver this Settlement Agreement.
All consents, authorizations and court approvals required for such Party to execute and
deliver this Settlement Agreement have already been obtained and are in full force and
effect.

     (b) Before such Party signed this Settlement Agreement, such Party read the entirety of
this Settlement Agreement and counsel for such Party reviewed this Settlement Agreement with
such Party and explained to such Party the import and effect of each provision of this
Settlement Agreement.

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     (c) In entering into this Settlement Agreement, such Party is doing so voluntarily and
has relied solely on its/his own knowledge and judgment and the advice of its/his counsel
and has not relied on any representation, promise, advice or action by any other person or
entity (except as expressly provided in this Settlement Agreement).

     (d) No portion of (i) any Claims ever asserted by or on behalf of such Party against
any Meridian-Related Party, (ii) the Claims being released by such Party under paragraph
2(a) above or (iii) any right, title and interest of such Party in or to any of the
agreements referenced in the recitals above has been sold, assigned, conveyed, exchanged,
donated, encumbered, transferred or otherwise alienated to any other person or entity (other
than to another Party).

     (e) Reeves (directly or indirectly) wholly owns and controls both TODD and JAR.

     6. Representations by TMR. TMR represents and warrants as follows:

     (a) TMR is duly authorized to execute and deliver this Settlement Agreement on behalf
of itself and all Meridian Parties. All consents, authorizations and court approvals
required for TMR to execute and deliver this Settlement Agreement have already been obtained
and are in full force and effect.

     (b) Before TMR signed this Settlement Agreement, TMR read the entirety of this
Settlement Agreement and counsel for TMR reviewed this Settlement Agreement with TMR and
explained to TMR the import and effect of each provision of this Settlement Agreement.

     (c) In entering into this Settlement Agreement, TMR is doing so voluntarily and has
relied solely on its own knowledge and judgment and the advice of its counsel and has not
relied on any representation, promise, advice or action by any other person or entity
(except as expressly provided in this Settlement Agreement).

     (d) No portion of (i) any Claims ever asserted by or on behalf of such Party against
any Reeves-Related Party or (ii) the Claims being released by TMR under paragraph 2(b) above
has been sold, assigned, conveyed, exchanged, donated, encumbered, transferred or otherwise
alienated to any other person or entity.

     7. Indemnity.

     (a) Each of TODD, JAR and Reeves shall protect and indemnify (and, at TMR’s
request, defend) each of the Meridian-Related Parties from and against (and also pay
any and all attorney’s fees, costs and expenses incurred by any or all of the
Meridian-Related Parties arising out of or relating to) any (i) Released Claims that
are asserted by, through or under any or all of the Reeves-Related Parties or (ii)
any Claims that constitute a breach by any of the Reeves Parties of any covenant,
representation or warranty of TODD, JAR or Reeves under this Settlement Agreement

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     (b) TMR shall protect and indemnify (and, at Reeves’s request, defend) each of
the Reeves-Related Parties from and against (and also pay any and all attorney’s
fees, costs and expenses incurred by any or all of the Reeves-Related Parties
arising out of or relating to) any (i) Released Claims that are asserted by, through
or under any or all of the Meridian-Related Parties or (ii) any Claims that
constitute a breach by any of the Meridian Parties of any covenant, representation
or warranty of TMR under this Settlement Agreement.

     8. Costs and fees. Each Party shall be responsible for any and all attorneys fees and
other fees, costs and expenses incurred by such Party in connection with the with the negotiation,
execution, delivery and/or performance of this Settlement Agreement (except as provided in
paragraph 6 above).

     9. Construction of this Settlement Agreement. This Settlement Agreement constitutes
the entire agreement between the Parties with respect to the Claims compromised herein. There are
no oral agreements between the Parties. This Settlement Agreement along with the Letter Agreement,
MPAs, Form JOAs, Third Party Operating Agreements, Original NPI Agreement as amended by the NPI
Amendment, Termination Agreement, the Omnibus Agreement (which is, together with its exhibits,
incorporated in its entirety herein) and the prior assignments executed under the Letter Agreement
or Original NPI Agreement as amended by the NPI Amendment supersede and replace any and all other
prior or contemporaneous agreements, representations or understandings (written, oral or otherwise)
with respect to the NPIs and MPAs or the subject matter hereof. Each Party confirms that it is not
relying on any representations or warranties of any other Party except as specifically set forth in
this Settlement Agreement. This Settlement Agreement shall be considered the joint work product of
all Parties; thus, no provision shall be construed against a Party on the grounds that it proposed,
drafted or modified such (or any other proposed or final) provision. The headings in this
Settlement Agreement are for convenience only and shall not limit or otherwise affect the
interpretation of any provision in this Settlement Agreement. No amendment or modification hereof
shall be binding unless in writing and duly executed by all Parties or their respective heirs,
legal representative, successors or assigns. Every provision of this Settlement Agreement is
intended to be severable such that the invalidity or unenforceability of any provision of this
Settlement Agreement shall not affect the validity or enforceability of any other provision of this
Settlement Agreement, unless and except if the provision(s) that is/are struck for invalidity are
so material that the party in whose favor said provision(s) run would not have entered into this
Settlement Agreement had said party known that the provision(s) was invalid..

     10. Choice of law; venue. This Settlement Agreement shall be governed by and
construed in accordance with the laws of the State of Texas, without regard to any conflict-of-laws
provisions that would apply the laws of another jurisdiction. Further, the Parties agree that any
legal proceeding to enforce the provisions of this Settlement Agreement shall be brought solely in
Houston, Harris County, Texas. This provision is specifically limited to claims arising directly
out of this Settlement Agreement and is not meant to modify the choice of law or venue provisions
set forth in any of the underlying agreements including the Original NPI Agreement, the NPI
Amendment, the Letter Agreement, the MPAs and/or the Omnibus Agreement.

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     11. Joinder by Reeves’ wife. Reeves’ wife joins this Settlement Agreement solely for
purposes of (a) binding any community property interest she may have in any or all of (i) the
Claims released by Reeves in this Settlement Agreement and/or (ii) the agreements referenced in the
recitals above and (b) consenting to and ratifying this Settlement Agreement.

     12. Successors and assigns. This Settlement Agreement shall be binding on and inure
to the benefit of each Party and its/his heirs, legal representatives, successors and assigns.

     13. Counterparts. This Settlement Agreement may be executed in counterparts, each of
which shall be deemed an original and all of which shall constitute a single agreement.

[remainder of page intentionally blank; signature pages follow]

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     IN WITNESS WHEREOF, TODD, JAR and Reeves have executed this Settlement Agreement in the
presence of the undersigned competent witnesses on the date set forth in the notarial
acknowledgment below but effective as of the Effective Time.

	 	 	 	 	 	 	 
	WITNESSES to all signatures	 	Texas Oil Distribution & Development, Inc.
	 
	 	 	 	 	 	 
	 
	 

	 	 	 	By:
	 	/s/ Joseph A. Reeves, Jr.
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Joseph A. Reeves, Jr., President
	Signature:

	 	/s/ Lloyd DeLano	 	 	 	 
	 

	 	 	 	 	 	 
	Name printed: Lloyd DeLano	 	JAR Resource Holdings, LLC
	 	 	 	 	By JAR Resource Corporation, its general partner
	 
	 	 	 	 	 	 
	 
	 

	 	 	 	By:
	 	/s/ Joseph A. Reeves, Jr.
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Joseph A. Reeves, Jr., President
	 
	Signature:

	 	/s/ Ethel Pourciaux	 	 	 	 
	 

	 	 	 	 	 	 
	Name printed: Ethel Pourciaux	 	Joseph A. Reeves, Jr.
	 
	 	 	 	 	 	 
	 
	 	 	 	 	/s/ Joseph A. Reeves, Jr.
	 	 	 	 	 
	 	 	 	 	Joseph A. Reeves, Jr.

Notarial acknowledgment

State of Texas

County of Harris

     Before me, the undersigned Notary Public in and for the aforesaid State and County, personally
appeared Joseph A. Reeves, Jr., who is personally known to me and who upon being duly sworn by me
did state that he executed the foregoing instrument this day (i) as the duly authorized President
of Texas Oil Distribution & Development, Inc., a Texas corporation, by the authority of its board
of directors as the free act and deed of said corporation, (ii) as the duly authorized President of
JAR Resource Corporation, a Texas corporation and the general partner of JAR Resource Holdings,
LLC, a Texas limited liability company, by the authority of said corporation’s board of directors
and said partnership’s partner as the free act and deed of said corporation and partnership and
(iii) as his free and deed in his individual capacity.

     WITNESS MY HAND AND SEAL this 22nd day of December 2009.

	 	 	 	 	 
	 	 	 
	 	                                      /s/ Melinda Frew
 	 
	 	                    Notary Public for the State of Texas 	 
	 	My commission expires 11-5-10 	 

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     IN WITNESS WHEREOF, TMR has executed this Settlement Agreement in the presence of the
undersigned competent witnesses on the date set forth in the notarial acknowledgment below but
effective as of the Effective Time.

	 	 	 	 	 	 	 
	WITNESSES:	 	The Meridian Resource Corporation
	 
	 	 	 	 	 	 
	 
	Signature:

	 	/s/ Tiffany Peoples Elder
	 	By:
	 	/s/ Paul Ching
	 

	 	 
	 	 	 	 
	Name printed: Tiffany Peoples Elder	 	 	 	Paul Ching, Chief Executive Officer
	 
	 	 	 	 	 	 
	Signature:

	 	/s/ Ethel Pourciaux	 	 	 	 
	 

	 	 	 	 	 	 
	Name printed: Ethel Pourciaux	 	 	 	 

Notarial acknowledgment

State of Texas

County of Harris

     Before me, the undersigned Notary Public in and for the aforesaid State and County, personally
appeared Paul Ching, who is personally known to me and who upon being duly sworn by me did state
that he executed the foregoing instrument this day as the duly authorized Chief Executive Officer
of The Meridian Resource Corporation, a Texas corporation, by the authority of its board of
directors as the free act and deed of said corporation.

     WITNESS MY HAND AND SEAL this 22nd day of December 2009.

	 	 	 	 	 
	 	 	 
	 	                                      /s/ Melinda Frew
 	 
	 	                    Notary Public for the State of Texas 	 
	 	My commission expires 11-5-10 	 

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     IN WITNESS WHEREOF, Marilyn Dianne Stewart Reeves has executed and delivered this Settlement
Agreement (solely for the purposes as provided in paragraph 11 above) in the presence of the
undersigned competent witnesses on the date set forth in the notarial acknowledgment below but
effective as of the Effective Time.

WITNESSES:

	 	 	 	 	 
	Signature:

	 	/s/ Lloyd DeLano
	 	/s/ Marilyn Dianne Stewart Reeves
	 

	 	 
	 	 
	Name printed: Lloyd DeLano	 	Marilyn Dianne Stewart Reeves
	 
	 	 	 	 
	Signature:

	 	/s/ Ethel Pourciaux	 	 
	 

	 	 	 	 
	Name printed: Ethel Pourciaux	 	 

Notarial acknowledgment

State of Texas

County of Harris

     Before me, the undersigned Notary Public in and for the aforesaid State and County, personally
appeared Marilyn Dianne Stewart Reeves, who is personally known to me and who upon being duly sworn
by me did state that she executed the foregoing instrument this day as her free act and deed.

     WITNESS MY HAND AND SEAL this 22nd day of December 2009.

	 	 	 	 	 
	 	 	 
	 	                                      /s/ Melinda Frew
 	 
	 	                    Notary Public for the State of Texas 	 
	 	My commission expires 11-5-10 	 
	 

Page 11 of 11exv10w8

Exhibit 10.8

Agreement with Cross-Release

     This Agreement with Cross-Release (this “Agreement”) is made effective the 17th day of
December 2009 (the “Effective Date”) by and among Michael J. Mayell (“Mayell”), a
person of full age of majority with a mailing address at 4600 Post Oak Place, Suite 306, Houston,
Texas 77027; Sydson Energy, Inc. (“Sydson”), a Texas corporation with the same mailing
address; The Meridian Resource Corporation (“TMR”), a Texas corporation with a mailing
address at 1401 Enclave Parkway, Suite 300, Houston, Texas 77077; The Meridian Resource &
Exploration LLC (“TMRX”), a Delaware limited liability company with the same mailing
address; Louisiana Onshore Properties LLC (“LOPI”), a Delaware limited liability company
with the same mailing address and formerly known as Louisiana Onshore Properties Inc. before its
conversion from a Delaware corporation to a Delaware limited liability company; and Cairn Energy
USA, Inc. (“Cairn”), a Delaware corporation with the same mailing address.

     WHEREAS Sydson and TMRX (then known as Texas Meridian Resources Exploration, Inc.) entered
into that certain letter agreement dated July 15, 1996 (the “Letter Agreement”) with a form
of Master Participation Agreement attached as Exhibit 1 thereto for prospects thereunder (each, an
“MPA”), and a copy of the Letter Agreement and the MPA form attached hereto as Exhibit
1A; and

     WHEREAS Mayell and TMR (then known as Texas Meridian Resources Corporation) entered into (i)
that certain Agreement dated June 27, 1995 but effective as of January 1, 1994 (the “Original
NPI Agreement”) concerning net profits interests to be earned by Mayell thereunder (the
“Net Profits Interests” or “NPI”), (ii) a Termination Agreement as of April 29,
2008 (the “Termination Date”) relating to the Original NPI Agreement and by which the right
of Sydson to participate with TMR or any AFFILIATE (as defined in the Original NPI Agreement)
(each, a “Meridian Party”) in new oil and gas projects terminated on December 29, 2008 and
(iii) an “Amendment to Agreement Dated June 27, 1995” (the “NPI Amendment”), which amends
the Original NPI Agreement and has been filed of record in various jurisdictions as reflected on
Exhibit 1B hereto;

     NOW, THEREFORE, in consideration of the recitals above, the provisions below and other good
and valuable cause and consideration, the receipt and sufficiency of which each party acknowledges,
the parties agree as follows:

     1. This Agreement shall be binding on and inure to the benefit of each party and his/its
heirs, legal representatives, successors and assigns.

     2. Net Profits Interests of Mayell. The parties confirm, stipulate and agree as
follows:

     (a) All of the PROPERTIES (as defined in the Original NPI Agreement) that any Meridian
Party identified before the Termination Date and in which it owns any MINERAL INTEREST as of
the Effective Date (each, an “Active NPI Prospect”) consist of the prospects and
properties located within the lands (i) covered by any or all of the leases identified on
the schedule attached hereto as Exhibit 2A and/or (ii) included within the
boundaries of any or all of the contract areas outlined in red on the plats attached

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     hereto as Exhibit 2B (the lands collectively covered by (i) and (ii), the
“Active NPI Lands”).

     (b) All of the PROPERTIES that any Meridian Party identified before the Termination
Date and in which the Meridian Parties no longer own any MINERAL INTEREST (as defined in the
Original NPI Agreement) but owned or acquired a MINERAL INTEREST within three years of the
Effective Date (each, a “Suspended NPI Prospect”) consist of the prospects and
properties located within the lands (i) covered by any or all of the leases identified on
the schedule attached hereto as Exhibit 3A and/or (ii) included within the
boundaries of any or all of the contract areas outlined in red on the plats attached hereto
as Exhibit 3B (the lands collectively covered by (i) and (ii), the “Suspended
NPI Lands”). For each Suspended NPI Prospect, Exhibit 3C hereto lists of the
date after which the Meridian Parties have neither owned nor acquired any MINERAL INTEREST
in such Suspended NPI Prospect (the “Suspension Date”).

     (c) The decimal amounts of Mayell’s Net Profits Interests with respect to those wells
identified on Exhibit 4 hereto are (and, since Mayell’s acquisition of the Net
Profits Interests with respect to such wells, have been) as specified on Exhibit 4
hereto. These decimal amounts are what the parties have historically used with respect to
Mayell’s Net Profits Interests with respect to such wells.

     (d) Mayell does not claim (and is not entitled to) any net profits interests or other
mineral interests (including without limitation any further share of past, present or future
production or proceeds) from or through any Meridian Party as to any wells, prospects,
properties, leases or lands that are located outside both the Active NPI Lands and the
Suspended NPI Lands.

3. Interests of Sydson. The parties confirm, stipulate and agree as follows:

     (a) The parties acknowledge, confirm and agree that Exhibit 5 hereto lists (i)
all of the prospects that are subject to any MPA and are still in effect (collectively, the
“Active MPA Prospects”; and each individually, an “Active MPA Prospect”) and
(ii) for each such Active MPA Prospect, the applicable Meridian Party. All Active MPA
Prospects are included within and limited to those lands located within the boundaries of
any or all of the contract areas outlined in red on the plats attached hereto Exhibit
6 (the “MPA Lands”). No Active MPA Prospect is located outside the geographic
boundaries of the MPA Lands.

     (b) The decimal amounts of Sydson’s gross working interests and net revenue interests
with respect to each well identified on Exhibit 7 hereto are (and, since Sydson’s
first acquisition of any interests with respect to such well, have been) as specified on
Exhibit 7 hereto. These decimal amounts are what the parties have historically used
with respect to Sydson’s interests in such wells.

     (c) Except as previously conveyed to Sydson under a prior assignment pursuant to an MPA
(and then only to the extent of such prior assignment), Sydson does not claim (and is not
entitled to) any rights or interests from or through any Meridian

Page 2 of 7

 

     Party as to any wells, prospects, properties, leases or lands located outside the MPA
Lands.

     4. Notwithstanding anything in the agreements referenced in the recitals above or in
Exhibit 4 hereto, the parties agree that the NPI with respect to any production within
either of the prospect areas specified in Exhibit 8 hereto (whether from wells listed on
Exhibit 8A or 4 hereto or otherwise) (i) shall on or after January 1, 2010 not be subject
to proportionate reduction by reason of that certain Joint Exploration Agreement dated effective
August 12, 1998, by and among TMR, LOPI and Stone Energy Corporation with respect to the Weeks
Island area (a Declaration of Agreement for Exploitation of Mineral Interests for which was
recorded on May 3, 1999 at Conveyance Book 1176, Page 471, Entry No. 99-5625 of the conveyance
records of Iberia Parish, Louisiana) (the “Stone JEA”) but (ii) shall before January 1,
2010 be subject to proportionate reduction by reason of the Stone JEA (as if the Stone JEA were
made before the Meridian Parties acquired any interests at Weeks Island), with Mayell’s NPI in the
wells listed on Exhibit 8A being 1.5% of 8/8ths before January 1, 2010.

5. Operating Agreements. The parties confirm, stipulate and agree as follows:

     (a) To the extent that any of the lands or depths within an Active MPA Prospect are
included within the lands or depths subject to any existing operating agreement with one or
more third parties not counting Sydson Energy, Inc. (including without limitation those
operating agreements scheduled on Exhibit 9 hereto) (each, a “Third-Party
JOA”), then such Active MPA Prospect, the MPA for such Active MPA Prospect and any
interests of Sydson in such Active MPA Prospect are (and, since such party’s first
acquisition of any such interests, have been) subject to such Third-Party JOA as to such
lands or depths within such Active MPA Prospect that are subject to such Third-Party JOA.
To the extent that the assignment of any interest subject to a Third-Party JOA requires the
consent of a third-party that the parties have not obtained or is subject to a preferential
right to purchase in favor of a third party who has not waived such right, then any
interests of Sydson subject to such Third-Party JOA shall be treated as being held by the
applicable Meridian Party for the benefit of Sydson and shall be subject to the same
elections as the applicable Meridian Party may make with respect to its own interests.

     (b) Except to the extent covered by a Third-Party JOA, each Active MPA Prospect, the
MPA for such Active MPA Prospect and any interests of Sydson in such Active MPA Prospect are
(and, since such party’s first acquisition of any such interests, have been) subject to an
operating agreement in the form attached to the form of MPA attached to the Letter Agreement
(an “MPA-Form JOA”). In confirmation of the foregoing sentence, Sydson and the
appropriate Meridian Party hereby agree that a separate joint operating agreement in the
form of the MPA-Form JOA currently governs and is enforceable as to their joint interests in
(and, since such party’s first acquisition of any interest therein, has governed and been
enforceable as to their joint interests in) each Active MPA Prospect except to the extent
covered by a Third-Party JOA. Each party acknowledges that it is not aware of any joint
operating agreement to which Sydson is a party with any Meridian Party, other than a
Third-Party JOA or MPA-Form JOA.

Page 3 of 7

 

     (c) To the extent of any conflict between a Third-Party JOA and an MPA-Form JOA, the
Third-Party JOA shall control.

     6. The parties confirm, stipulate and agree that paragraph 7 of each MPA has been deleted in
full and made ineffective; that all tax partnerships, if any, created between any Meridian Party
and Sydson have been dissolved; and that all appropriate filings for such dissolution have been
made with the appropriate governmental authorities.

     7. General release and settlement of Claims. As further consideration for this
Agreement but subject to paragraph 8 below, the parties also agree as follows:

     (a) Each of Sydson and Mayell hereby forever releases, discharges, waives and forgoes
any and all Claims of any kind or nature (whether asserted or unasserted and whether known
or unknown) that such party ever had, have, claim or may have or in future obtain against
any or all of the Meridian-Related Parties arising at or before the Effective Time.

     (b) Each of TMR, TMRX, LOPI and Cairn forever releases, discharges, waives and forgoes
any and all Claims of any kind or nature (whether asserted or unasserted and whether known
or unknown) that such party ever had, have, claim or may have or in future obtain against
any or all of the Mayell-Related Parties arising at or before the Effective Time.

     (c) This Agreement is made in full and final amicable compromise and settlement of all
Claims (whether known or unknown; whether asserted or unasserted; and whether or not
relating to any or all of the agreements referenced in the recitals above) that Sydson ever
had, have, claim or may have or in the future obtain against any or all of the
Meridian-Related Parties arising at or before the Effective Time or that any of TMR, TMRX,
LOPI and Cairn ever had, have, claim or may have or in the future obtain against any or all
of the Mayell-Related Parties arising at or before the Effective Time. Nothing in this
Agreement shall be construed as an admission of liability, fault or breach by any Party or
of any claim or defense of any Party. Each Party knowingly waives (i) any Claim that this
Agreement was induced by any misrepresentation, nondisclosure, coercion or duress and (ii)
any right to rescind or avoid this Agreement based upon the currently existing facts,
whether known or unknown.

     8. Audit rights. Notwithstanding anything in paragraph 7 above to the contrary but
subject to the next sentence, Sydson and each applicable Meridian Party retain and do not release
any or all audit rights (and corresponding rights to issue additional invoices, including for
expenses incurred before the Effective Time) under, subject to and in accordance the applicable
MPA, Third-Party JOA and MPA-Form JOA with respect to any Active Prospect. Nothing in this
paragraph 8 shall reserve or grant to any Party the right to contest or dispute that any gross
working interest or net revenue interest of Sydson is other than as provided for under paragraphs
1-6 above.

Page 4 of 7

 

9. Indemnity.

     (a) Each of Sydson and Mayell shall protect and indemnify (and, at TMR’s request,
defend) each of the Meridian-Related Parties from and against (and also pay any and all
attorneys fees, costs and expenses incurred by any or all of the Meridian-Related Parties
arising out of or relating to) any and all Claims (i) being released by such party under
paragraph 7(a) above and/or (ii) for, arising out of or relating to any breach of any
covenant, representation or warranty of such party under this Agreement.

     (b) Each of TMR, TMRX, LOPI and Cairn shall protect and indemnify (and, at Sydson’s or
Mayell’s request, defend) each of the Mayell-Related Parties from and against (and also pay
any and all attorneys fees, costs and expenses incurred by any or all of the Mayell-Related
Parties arising out of or relating to) any and all Claims (i) being released by such party
under paragraph 7(b) above and/or (ii) for, arising out of or relating to any breach of any
covenant, representation or warranty of such party under this Agreement.

     10. This Agreement and the attached exhibits constitute the entire agreement among the parties
with respect to the matters contained herein and supersedes and replaces any and all prior
agreements, representations and understandings (oral, written or otherwise) with respect thereto.
Each party confirms that he/it is not relying on any representations or warranties of any other
party except as specifically set forth in this Agreement. No amendment or modification hereof
shall be binding unless in writing and duly executed by all parties or their respective heirs,
legal representative, successors or assigns.

     11. This Agreement may be executed in counterparts, each of which shall be deemed an original
and all of which shall constitute a single agreement.

[remainder of page intentionally blank; signature pages follow]

Page 5 of 7

 

     IN WITNESS WHEREOF, Mayell and Sydson have executed this Agreement in the presence of the
undersigned competent witnesses on the date set forth in the notarial acknowledgment below but
effective as of the Effective Date.

WITNESSES to all signatures:

	 	 	 	 	 	 	 
	Signature: 	/s/ Rita R. Coleman
	 	/s/ Michael Mayell
	 	 	 	 	 
	Name printed:	Rita R. Coleman	 	Michael J. Mayell
	 
	 	 	 	 	 	 
	Signature:	/s/ Rita R. Coleman	 	Sydson Energy, Inc.
	 

	 	 	 	 	 
	Name printed:

	Rita R. Coleman	 	 	 	 
	 
	 

	 	 	 	By:
	 	/s/ Michael Mayell
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Michael J. Mayell, President

Notarial acknowledgment

State of Texas

County of Harris

     Before me, the undersigned Notary Public in and for the aforesaid State and County, personally
appeared Michael J. Mayell, who is personally known to me and who upon being duly sworn by me did
state that he executed the foregoing instrument this day (i) as the duly authorized President of
Sydson Energy, Inc., a Texas corporation, by the authority of its board of directors as the free
act and deed of said corporation and (ii) as his free and deed in his individual capacity.

     WITNESS MY HAND AND SEAL this 17th day of December 2009.

	 	 	 	 	 
	 	 	 
	 	                                 /s/ Helen Ruth Washington
 	 
	 	Notary Public for the State of Texas 	 
	 	Full name printed: Helen Ruth Washington

Notarial Identification Number 00567439-9

My commission expires 7-22-2013	 

Page 6 of 7

 

     IN WITNESS WHEREOF, TMR, TMRX, LOPI and Cairn have executed this Agreement in the presence of
the undersigned competent witnesses on the date set forth in the notarial acknowledgment below but
effective as of the Effective Date.

	 	 	 	 	 	 	 
	WITNESSES to all signatures	 	The Meridian Resource Corporation
	 
	 	 	 	 	 	 
	 
	 

	 	 	 	By:
	 	/s/ Paul D. Ching
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Paul Ching, Chief Executive Officer
	 
	 	 	 	 	 	 
	 	 	 	 	The Meridian Resource & Exploration LLC
	Signature:  

	/s/ Sherry E. Guy	 	 	 	 
	 

	 	 	 	 	 
	Name printed:

	 Sherry E. Guy
	 	By:
	 	/s/ Paul D. Ching
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Paul Ching, one of its managers
	 
	 	 	 	 	 	 
	 	 	 	 	Louisiana Onshore Properties LLC
	 
	 	 	 	 	 	 
	 
	 

	 	 	 	By:
	 	/s/ Paul D. Ching
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Paul Ching, one of its managers
	 
	 	 	 	 	 	 
	 	 	 	 	Cairn Energy USA, Inc.
	Signature:  

	/s/ Ethel Pourciaux	 	 	 	 
	 

	 	 	 	 	 
	Name printed:

	 Ethel Pourciaux
	 	By:
	 	/s/ Paul D. Ching
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Paul Ching, Chief Executive Officer

Notarial acknowledgment

State of Texas

County of Harris

     Before me, the undersigned Notary Public in and for the aforesaid State and County, personally
appeared Paul Ching, who is personally known to me and who upon being duly sworn by me did state
that he executed the foregoing instrument this day (i) as the duly authorized Chief Executive
Officer of The Meridian Resource Corporation, a Texas corporation, by the authority of its board of
directors as the free act and deed of said corporation, (ii) as a duly authorized manager of The
Meridian Resource & Exploration LLC, a Delaware limited liability company, by the authority of its
managers as the free act and deed of said company, (iii) as a duly authorized manager of Louisiana
Onshore Properties LLC, a Delaware limited liability company, by the authority of its managers as
the free act and deed of said company and (iv) as the duly authorized Chief Executive Officer of
Cairn Energy USA, Inc., a Delaware corporation, by the authority of its board of directors as the
free act and deed of said corporation.

     WITNESS MY HAND AND SEAL this 17th day of December 2009.

	 	 	 	 	 
	 	 	 
	 	                                   /s/ Melinda Frew
 	 
	 	Notary Public for the State of Texas 	 
	 	Full name printed: Melinda Frew

Notarial Identification Number 00139815-1

My commission expires 11-5-10	 
	 

Page 7 of 7

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