Document:

exv10w3

Exhibit 10.3

THIRD AMENDMENT TO FORBEARANCE AGREEMENT

     THIS THIRD AMENDMENT TO FORBEARANCE AGREEMENT (the “Amendment”) is made as of December
16, 2009, by and among FORTIS CAPITAL CORP., a Connecticut corporation (“FCC”), FORTIS
ENERGY MARKETING & TRADING GP, a Delaware general partnership (formerly known as Fortis Energy LLC,
a Delaware limited liability company, “FEMT”), THE MERIDIAN RESOURCE CORPORATION, a Texas
corporation (“Meridian”), and the undersigned Guarantors (the “Guarantors”).

R E C I T A L S:

     WHEREAS, Meridian and FEMT have entered into (i) that certain ISDA 2002 Master Agreement, (ii)
that certain Schedule to the ISDA Master Agreement, and (iii) that certain ISDA Credit Support
Annex to the Schedule to the 2002 ISDA Master Agreement, each dated as of October 28, 2004
(together with all Confirmations (as defined therein), annexes, schedules, and exhibits thereto, as
amended, restated, supplemented, extended, or otherwise modified from time to time, collectively,
the “Master Agreement”);

     WHEREAS, Meridian, the Guarantors, FCC, and FEMT have entered into that certain Forbearance
Agreement dated as of September 3, 2009 (the “Forbearance Agreement”) pertaining to the
Master Agreement;

     WHEREAS, Meridian has requested that FCC and FEMT extend the Forbearance Period under the
Forbearance Agreement, and FCC and FEMT have agreed to do so under the terms and conditions set
forth in this Amendment.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, and intending to be legally bound, each of FCC, FEMT, Meridian and the
Guarantors agree as follows:

     1. Definitions. Capitalized terms defined in the Recitals section of this Amendment
are incorporated herein by this reference and are used herein as so defined. Capitalized terms
used and not defined in this Amendment (including in the Recitals section of this Amendment) shall
have the meanings assigned to such terms in the Forbearance Agreement.

     2. Amendments to the Forbearance Agreement. Meridian, the Guarantors, FCC and FEMT
agree that the Forbearance Agreement will be amended as follows:

     (a) Hedge Forbearance Period. The first sentence of Section 2(a) is
amended to read as follows:

     “(a) Forbearance. During the period (the “Hedge
Forbearance Period”) commencing on the Effective Date (as defined below)
and ending on the earlier to occur of: (i) the end of the Forbearance Period
under the Bank Group Forbearance Agreement; or (ii) the date that any Hedge
Forbearance Default occurs, and subject to the other terms and conditions

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of this Agreement, FEMT hereby agrees that it will forbear from
exercising any and all of its rights or remedies under the Master Agreement
arising as a result of a Designated Event of Default, in consideration of
Meridian’s and each Guarantor’s agreements, covenants, releases, and waivers
contained in this Agreement.”

     3. Ratifications, Representations and Warranties.

     (a) Ratification of Master Agreement. Except as expressly modified and
superseded by this Agreement, the terms and provisions of the Master Agreement hereby are
ratified and confirmed and shall continue in full force and effect. Meridian and FEMT agree
that the Master Agreement shall continue to be legal, valid, binding, and enforceable in
accordance with its terms. Meridian and each Guarantor further expressly acknowledges and
agrees that FEMT and FCC have a valid, non-avoidable, enforceable, and perfected security
interest in and lien against each item of collateral described in the Master Agreement, and
that such security interest and lien secures the payment obligations (if any) and the
performance of all other obligations of Meridian under the Master Agreement.

     (b) General Representations and Warranties. Meridian and each Guarantor hereby
jointly and severally represent and warrant to FEMT and FCC that (i) the execution,
delivery, and performance of this Agreement has been duly authorized by all requisite
organizational action on the part of such party and will not violate the constituent
organizational documents of such party, contravene any contractual restriction, any law,
rule, or regulation or court or administrative decree or order binding on or affecting such
party or result in, or require the creation or imposition of any lien, security interest, or
encumbrance on any of the properties of such party; (ii) this Agreement has been duly
executed and delivered by each party and is the legal, valid, and binding obligation of each
party, enforceable in accordance with its terms; (iii) other than with respect to the
Designated Events of Default, (1) the representations and warranties contained in the Master
Agreement are true and correct on and as of the date hereof and on and as of the date of
execution hereof as though made on and as of each such date, (2) no Event of Default or
Potential Event of Default under the Master Agreement has occurred and is continuing, and
(3) Meridian is in full compliance with all covenants and agreements contained in the Master
Agreement; and (iv) absent the effectiveness of this Agreement, FEMT is entitled to exercise
immediately its rights and remedies under the Master Agreement.

     (c) Ratification of Guarantees. Each of the Guarantors hereby acknowledges and
consents to all of the terms and conditions of this Agreement and hereby ratifies and
confirms its respective guarantee under the Guarantee dated as of August 13, 2002, as
amended by that certain Amendment and Confirmation of Guarantee dated as of December 23,
2004 (as so amended, the “Guarantee”) for the benefit of FEMT and FCC. Each
Guarantor hereby represents and acknowledges that the execution and delivery of this
Agreement shall in no way change or modify its obligations as a guarantor under the
Guarantee and shall not constitute a waiver by FEMT or FCC of any of its rights against such
Guarantor.

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     4. Conditions Precedent. This Amendment shall become effective (the “Effective
Date”) upon receipt by FCC and FEMT of an executed copy of this Amendment.

     5. Miscellaneous Provisions.

     (a) Survival of Representations and Warranties. All representations and
warranties made in the Master Agreement shall survive the execution and delivery of this
Agreement, and no investigation by FEMT or FCC or any closing shall affect such
representations and warranties or the right of FEMT and FCC to rely upon them.

     (b) Limitation on Relationship between Parties. Nothing contained in this
Agreement, the Master Agreement, or any instrument, document, or agreement delivered in
connection herewith or therewith shall be deemed or construed to create a fiduciary
relationship between the parties hereto.

     (c) Expenses of FEMT and FCC. Meridian agrees to pay on demand all reasonable
costs and out-of-pocket expenses incurred by FEMT and FCC in connection with the
preparation, negotiation, execution, and enforcement of this Agreement and any and all
amendments, modifications, and supplements hereto, including, without limitation, the
reasonable costs and fees of FEMT’s and FCC’s legal counsel, and all costs and expenses
incurred by FEMT in connection with the enforcement or preservation of any rights under the
Master Agreement.

     (d) Severability. Any provision of this Agreement held by a court of competent
jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of
this Agreement and the effect thereof shall be confined to the provision so held to be
invalid or unenforceable.

     (e) Successors and Assigns; Third Party Beneficiaries. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns, except that neither Meridian nor any Guarantor may assign or transfer any of
its rights or obligations under this Agreement without the prior written consent of FEMT and
FCC, and no other person shall have any right, benefit or interest under or because of the
existence of this Agreement.

     (f) Amendments; Interpretation. No amendment or modification of any provision
of this Agreement shall be effective without the written agreement of the parties hereto,
and no waiver of any provision of this Agreement or consent to any departure by Meridian or
any Guarantor therefrom, shall in any event be effective without the written consent of FEMT
and FCC. Any waiver or consent shall be effective only in the specific instance and for the
specific purpose for which it was given.

     (g) Counterparts. This Agreement may be executed by one or more of the parties
hereto in any number of separate counterparts, each of which when so executed shall be
deemed to be an original, but all of which when taken together shall constitute one and the
same instrument, and all signature pages transmitted by electronic transmission shall be
considered as original executed counterparts. Each party to this

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Agreement agrees that it will be bound by its own facsimile or electronic signature and
that it accepts the facsimile or electronic signatures of each other party.

     (h) Headings. The headings, captions, and arrangements used in this Agreement
are for convenience only and shall not affect the interpretation of this Agreement.

     (i) Further Assurances. Meridian and each Guarantor agrees to execute such
other and further documents and instruments as FEMT or FCC may request to implement the
provisions of this Agreement and to perfect and protect the liens and security interests
created by the Master Agreement.

     (j) Applicable Law. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     (k) Release. MERIDIAN AND EACH GUARANTOR HEREBY ACKNOWLEDGES THAT IT HAS NO
DEFENSE, RECOUPMENT, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM, OR DEMAND OF ANY KIND OR
NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL, OR ANY PART OF ITS
LIABILITY TO REPAY ITS OBLIGATIONS (IF ANY) ARISING UNDER THE MASTER AGREEMENT OR TO SEEK
AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM FEMT OR FCC WITH RESPECT THERETO.
MERIDIAN AND EACH GUARANTOR HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES
FEMT, FCC, AND THEIR RESPECTIVE PREDECESSORS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS,
ATTORNEYS, ACCOUNTANTS, CONSULTANTS, REPRESENTATIVES, OWNERS, AFFILIATES, SUCCESSORS,
TRANSFEREES AND ASSIGNS (COLLECTIVELY, THE “RELEASED PARTIES”), FROM ALL POSSIBLE
CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES
WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED,
CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR
BEFORE THE DATE THIS AGREEMENT IS EXECUTED, WHICH MERIDIAN OR SUCH GUARANTOR MAY NOW OR
HEREAFTER HAVE AGAINST ANY RELEASED PARTY, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH
CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND
ARISING FROM OR ARISING IN CONNECTION WITH ANY “LOANS”, INCLUDING, WITHOUT LIMITATION, ANY
CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF
THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE MASTER
AGREEMENT, AND/OR NEGOTIATION OF, OR EXECUTION OF, THIS AGREEMENT. IT IS AGREED THAT
THE SCOPE OF THIS RELEASE UNDER THIS PARAGRAPH 

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SHALL INCLUDE ALL CLAIMS, DEMANDS, OR CAUSES OF ACTION ARISING IN WHOLE OR PART
FROM THE NEGLIGENCE OR STRICT LIABILITY OF FEMT, FCC, OR ANY OTHER RELEASED PARTY.
MERIDIAN AND EACH GUARANTOR HEREBY COVENANTS AND AGREES NEVER TO INSTITUTE ANY ACTION OR
SUIT AT LAW OR IN EQUITY, NOR INSTITUTE, PROSECUTE, OR IN ANY WAY AID IN THE INSTITUTION OR
PROSECUTION OF, ANY CLAIM, ACTION, OR CAUSE OF ACTION TO RECOVER DEBTS OR DEMANDS OF ANY
NATURE AGAINST ANY OF THE RELEASED PARTIES ARISING OUT OF OR RELATED TO A RELEASED PARTY’S
ACTIONS, OMISSIONS, STATEMENTS, REQUESTS, OR DEMANDS IN ADMINISTERING, ENFORCING,
MONITORING, COLLECTING, OR ATTEMPTING TO COLLECT, THE OBLIGATIONS, INDEBTEDNESS, AND OTHER
OBLIGATIONS OF MERIDIAN OR ANY GUARANTOR TO A RELEASED PARTY. MERIDIAN AND EACH GUARANTOR
AGREES TO INDEMNIFY AND HOLD FEMT AND FCC HARMLESS FROM ANY AND ALL MATTERS RELEASED
PURSUANT TO THIS PARAGRAPH. MERIDIAN AND EACH GUARANTOR ACKNOWLEDGES THAT THE AGREEMENTS IN
THIS PARAGRAPH ARE INTENDED TO BE IN FULL SATISFACTION OF ALL OR ANY ALLEGED INJURIES OR
DAMAGES TO MERIDIAN AND SUCH GUARANTOR, THEIR RESPECTIVE SUCCESSORS, AGENTS, ATTORNEYS,
OFFICERS, DIRECTORS, ASSIGNS AND PERSONAL AND LEGAL REPRESENTATIVES ARISING IN CONNECTION
WITH SUCH MATTERS RELEASED PURSUANT TO THE OTHER PROVISIONS OF THIS PARAGRAPH. MERIDIAN AND
EACH GUARANTOR REPRESENTS AND WARRANTS TO FEMT AND FCC THAT IT HAS NOT PURPORTED TO
TRANSFER, ASSIGN, OR OTHERWISE CONVEY ANY OF ITS RIGHT, TITLE, OR INTEREST IN ANY RELEASED
MATTER TO ANY OTHER PERSON AND THAT THE FOREGOING CONSTITUTES A FULL AND COMPLETE RELEASE OF
MERIDIAN’S AND SUCH GUARANTOR’S CLAIMS WITH RESPECT TO ALL SUCH MATTERS. THE PROVISIONS OF
THIS SECTION 7(k) AND THE REPRESENTATIONS, WARRANTIES, RELEASES, WAIVERS, REMISES,
ACQUITTANCES, DISCHARGES, COVENANTS, AGREEMENTS, AND INDEMNIFICATIONS CONTAINED HEREIN (A)
CONSTITUTE A MATERIAL CONSIDERATION FOR AND INDUCEMENT TO FEMT AND FCC ENTERING INTO THIS
AGREEMENT, (B) DO NOT CONSTITUTE AN ADMISSION OF OR BASIS FOR ESTABLISHING ANY DUTY,
OBLIGATION, OR LIABILITY OF FEMT OR FCC TO MERIDIAN OR ANY GUARANTOR OR ANY OTHER PERSON,
(C) DO NOT CONSTITUTE AN ADMISSION OF OR BASIS FOR ESTABLISHING ANY LIABILITY, WRONGDOING,
OR VIOLATION OF ANY OBLIGATION, DUTY, OR AGREEMENT OF FEMT OR FCC TO MERIDIAN OR ANY
GUARANTOR OR ANY OTHER PERSON, AND (D) SHALL NOT BE USED AS EVIDENCE AGAINST FEMT OR FCC BY
MERIDIAN OR ANY GUARANTOR ANY OTHER PERSON FOR ANY PURPOSE.

     (l) Waiver of Jury Trial. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO HAVE
A JURY PARTICIPATE IN RESOLVING ANY

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DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, BETWEEN FEMT OR FCC AND
MERIDIAN AND THE GUARANTORS OR ANY OF THEIR RESPECTIVE AFFILIATES ARISING OUT OF, CONNECTED
WITH, RELATED TO OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN THIS
AGREEMENT. INSTEAD, ANY DISPUTES RESOLVED IN COURT WILL BE RESOLVED IN A BENCH TRIAL
WITHOUT A JURY.

     (m) Submission to Jurisdiction. Meridian and each Guarantor agrees that all
disputes among it and FEMT or FCC arising out of, connected with, related to, or incidental
to the relationship established between them in this Agreement, whether arising in contract,
tort, equity, or otherwise, shall be resolved only by the courts of the State of New York,
the Federal courts sitting therein, and appellate court from any thereof. Meridian and each
Guarantor waives in all disputes any objection that any of them may have to the location of
the court considering the dispute which court shall have been chosen in accordance with the
foregoing.

     (n) Loan Documents. This Agreement shall constitute a Loan Document (as
defined in the Credit Agreement).

     (o) Final Agreement. THE MASTER AGREEMENT REPRESENTS THE ENTIRE EXPRESSION OF
THE PARTIES WITH RESPECT TO THE SUBJECT MATTER THEREOF ON THE DATE THIS AGREEMENT IS
EXECUTED. THE MASTER AGREEMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES. NO MODIFICATION, RESCISSION, WAIVER, RELEASE, OR AMENDMENT
OF ANY PROVISION OF THIS AGREEMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY
EACH PARTY HERETO.

[Signature Pages Follow]

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

	 	 	 	 	 
	 	THE MERIDIAN RESOURCE CORPORATION

 	 
	 
	 	By:  	/s/ Steven G. Ives
 	 
	 	 	Name:  	Steven G. Ives 	 
	 	 	Title:  	Vice President 	 
	 
	 	FORTIS CAPITAL CORP.

 	 
	 
	 	By:  	/s/ Harry T. Nullet
 	 
	 	 	Name:  	Harry T. Nullet 	 
	 	 	Title:  	Director 	 
	 
	 
	 	By:  	                        /s/ Johan Rutsaert
 	 
	 	 	Name:  	Johan Rutsaert 	 
	 	 	Title:  	Director 	 
	 
	 	FORTIS ENERGY MARKETING & TRADING GP

 	 
	 
	 	By:  	/s/ Joel D. McKnight
 	 
	 	 	Name:  	Joel D. McKnight 	 
	 	 	Title:  	Chief Operating Officer 	 
	 
	 
	 	By:  	                      /s/ Donald W. Black
 	 
	 	 	Name:  	Donald W. Black 	 
	 	 	Title:  	Managing Director 	 

 

 

	 	 	 	 	 

ACKNOWLEDGED AND AGREED:

	 	 	 	 	 
	 	GUARANTORS:

CAIRN ENERGY USA, INC.

 	 
	 
	 	By:  	/s/ Steven G. Ives
 	 
	 	 	Name:  	Steven G. Ives 	 
	 	 	Title:  	Vice President 	 
	 
	 	THE MERIDIAN RESOURCE & EXPLORATION LLC

 	 
	 
	 	By:  	/s/ Steven G. Ives
 	 
	 	 	Name:  	Steven G. Ives 	 
	 	 	Title:  	Vice President 	 
	 
	 	THE MERIDIAN PRODUCTION CORPORATION

 	 
	 
	 	By:  	/s/ Steven G. Ives
 	 
	 	 	Name:  	Steven G. Ives 	 
	 	 	Title:  	Vice President 	 
	 
	 	THE MERIDIAN RESOURCE CORPORATION

 	 
	 
	 	By:  	/s/ Steven G. Ives
 	 
	 	 	Name:  	Steven G. Ives 	 
	 	 	Title:  	Vice President 	 
	 
	 	FBB ANADARKO CORP.

 	 
	 
	 	By:  	/s/ Steven G. Ives
 	 
	 	 	Name:  	Steven G. Ives 	 
	 	 	Title:  	Vice President 	 
	 
	 	TE TMR CORP.

 	 
	 
	 	By:  	/s/ Steven G. Ives
 	 
	 	 	Name:  	Steven G. Ives 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 
	 	SUNDANCE ACQUISITION CORPORATION

 	 
	 
	 	By:  	/s/ Steven G. Ives
 	 
	 	 	Name:  	Steven G. Ives 	 
	 	 	Title:  	Vice President 	 
	 
	 	LOUISIANA ONSHORE PROPERTIES LLC

 	 
	 
	 	By:  	/s/ Steven G. Ives
 	 
	 	 	Name:  	Steven G. Ives 	 
	 	 	Title:  	Vice President 	 
	 
	 	TMR DRILLING CORPORATION

 	 
	 
	 	By:  	/s/ Steven G. Ives
 	 
	 	 	Name:  	Steven G. Ives 	 
	 	 	Title:  	Vice President 	 
	 
	 	TMR EQUIPMENT CORPORATION

 	 
	 
	 	By:  	/s/ Steven G. Ives
 	 
	 	 	Name:  	Steven G. Ives 	 
	 	 	Title:  	Vice Presidentexv10w4

Exhibit 10.4

FOURTH AMENDMENT TO FORBEARANCE AND AMENDMENT AGREEMENT

     THIS FOURTH AMENDMENT TO FORBEARANCE AND AMENDMENT AGREEMENT (this “Fourth
Amendment”) is made as of December 22, 2009, by and among TMR DRILLING CORPORATION, a Texas
corporation (the “Borrower”), THE MERIDIAN RESOURCE CORPORATION, a Texas corporation
(“Meridian”), THE MERIDIAN RESOURCE & EXPLORATION LLC, a Delaware limited liability company
(“TMR Exploration,” and collectively with the Borrower and Meridian, the “CIT Credit
Parties”) and THE CIT GROUP/EQUIPMENT FINANCING, INC. (“CIT”), in its capacity as
Administrative Agent and Lender under the CIT Credit Agreement (as defined below).

R E C I T A L S:

     WHEREAS, the Borrower and CIT have entered into that certain Credit Agreement dated as of
May 2, 2008 (as amended by the CIT Forbearance Agreement (as defined below), the “CIT Credit
Agreement);

     WHEREAS, pursuant to that Guaranty dated as of May 2, 2008, Meridian and TMR Exploration have
guaranteed the full and prompt payment of all Obligations of Borrower under the CIT Credit
Agreement and the other Loan Documents (as defined in the CIT Credit Agreement);

     WHEREAS, the CIT Credit Parties and CIT have entered into that certain Forbearance and
Amendment Agreement dated as of September 3, 2009, as amended by that First Amendment to
Forbearance and Amendment Agreement dated as of December 4, 2009, that Second Amendment to
Forbearance and Amendment Agreement dated as of December 14, 2009, and that Third Amendment to
Forbearance and Amendment Agreement dated as of December 21, 2009 (the “CIT Forbearance
Agreement”);

     WHEREAS, the CIT Credit Parties, Fortis Capital Corp. (“Fortis”) and certain of the
other parties to the Working Capital Loan Agreement have entered into that Forbearance and
Amendment Agreement dated as of September 3, 2009 (as subsequently amended, the “Bank Group
Forbearance Agreement”), pursuant to which Fortis and certain of the Lenders (as defined in the
Working Capital Loan Agreement) have agreed to forbear from exercising rights and remedies under
the Working Capital Loan Documents on the terms and conditions set forth in the Bank Group
Forbearance Agreement;

     WHEREAS, on the date of this Fourth Amendment, Meridian has entered, or will enter, into that
certain Agreement and Plan of Merger, dated on or about December 22, 2009 (the “Alta Mesa
Merger Agreement”), by and among Alta Mesa Holdings, LP, a Texas limited partnership (“Alta
Mesa”), Alta Mesa Acquisition Sub, LLC, a Texas limited liability company, and Meridian;

     WHEREAS, the Borrower has requested that CIT consent to the merger transaction contemplated by
the Alta Mesa Merger Agreement (the “Alta Mesa Merger”) and further extend the Forbearance
Period under the CIT Forbearance Agreement, and CIT has agreed to do so under the terms and
conditions set forth in this Fourth Amendment; and

 

 

     WHEREAS, the CIT Credit Parties, Fortis and the Lenders under the Working Capital Loan
Agreement have further amended the Bank Group Forbearance Agreement by entering into that Eleventh
Amendment to Forbearance and Amendment Agreement dated as of December 22, 2009 (the “Eleventh
Bank Group Amendment”).

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and intending to be legally bound, each of CIT and the CIT Credit Parties
agrees as follows:

     1. Definitions. Capitalized terms defined in the Recitals section of this Fourth
Amendment are incorporated herein by this reference and are used herein as so defined. Capitalized
terms used and not defined in this Fourth Amendment (including in the Recitals section of this
Fourth Amendment) shall have the meanings assigned to such terms in the CIT Forbearance Agreement
and the CIT Credit Agreement.

     2. Amendment to the CIT Forbearance Agreement. CIT and the CIT Credit
Parties agree that the CIT Forbearance Agreement will be amended as follows:

     (a) Section 2(a)(i) of the CIT Forbearance Agreement is amended and
restated in its entirety as follows:

     “(i) 5:00 p.m. (Central Time) on the earlier of (x) May 31, 2010, (y) the
Effective Time (as defined in the Alta Mesa Merger Agreement), or (z) the
termination of the Alta Mesa Merger Agreement; or ...”.

     (b) Section 11 of the CIT Forbearance Agreement is amended and
restated in its entirety as follows:

     “11. Termination of Forbearance Period. The Forbearance Period
shall terminate upon the occurrence of any of the following (each a “CIT
Forbearance Default”):

     (a) The occurrence of an Event of Default under the CIT Credit
Agreement (other than (i) the Designated Events of Default or (ii) an
Event of Default under Section 6.01(e) or 6.01(k) of the CIT Credit
Agreement arising solely and exclusively as a result of the Alta Mesa
Merger);

     (b) The occurrence of a Forbearance Default under, and as defined
in, the Bank Group Forbearance Agreement;

     (c) The failure by the Borrower or any other CIT Credit Party to
perform any covenant or otherwise comply with the terms of this
Agreement;

     (d) The commencement of litigation or legal proceedings by any
creditor of the CIT Credit Parties to collect Indebtedness due and owing
by such CIT Credit Party in an aggregate amount equal to or greater than
$1.0 million;

 

 

     (e) The amendment or modification in any material respect of any
provision of the Alta Mesa Merger Agreement without the written
agreement of CIT;

     (f) The failure of Alta Mesa to enter into, as of the Effective
Time (as defined in the Alta Mesa Merger Agreement), a Guaranty, in form
and substance satisfactory to CIT, guaranteeing in full the Obligations
of Borrower under the CIT Credit Agreement (the “Alta Mesa
Guaranty”); or

     (g) The occurrence of any change in the performance, prospects,
business, assets, nature of assets, condition (financial or otherwise)
or properties of Alta Mesa, or of Alta Mesa and its Subsidiaries taken
as a whole, that, in the sole discretion of CIT, materially and
adversely affects the ability of Alta Mesa to timely consummate the Alta
Mesa Merger or to be able perform its Obligations under the Alta Mesa
Guaranty.”

     3. Reporting Requirements. In addition to the reporting and notification
requirements set forth in Section 5.03 of the CIT Credit Agreement, as amended by Section 6(e) of
the CIT Forbearance Agreement, the CIT Credit Parties shall provide bi-weekly updates, via e-mail
or conference call, to CIT with respect to the status of the Alta Mesa Merger Agreement and the
transactions contemplated thereby.

     4. Consent of CIT. CIT hereby consents to the Alta Mesa Merger. CIT agrees
that the survivor of the Alta Mesa Merger shall succeed to the rights, benefits, obligations and
liabilities that Meridian had immediately prior thereto under the CIT Forbearance Agreement and the
CIT Credit Agreement pursuant to their terms.

     5. Ratifications, Representations and Warranties.

     (a) Ratification of Loan Documents and Liens.  Except as expressly
modified and superseded by this Fourth Amendment, the terms and provisions of the CIT Credit
Agreement and the other Loan Documents are ratified and confirmed and shall continue in full
force and effect. Each CIT Credit Party and CIT agree that the Loan Documents shall
continue to be legal, valid, binding and enforceable in accordance with their respective
terms. Each CIT Credit Party further expressly acknowledges and agrees that CIT has a
valid, non-avoidable, enforceable and perfected security interest in and lien against each
item of Collateral described in the Collateral Documents and that such security interest and
lien secures the payment Obligations and the performance of all other Obligations of the CIT
Credit Parties under the Loan Documents.

     (b) General Representations and Warranties.  Each CIT Credit Party
hereby jointly and severally represents and warrants to CIT that (i) the execution, delivery
and performance of this Fourth Amendment has been duly authorized by all requisite
organizational action on the part of such CIT Credit Party and will not violate the
constituent organizational documents of such CIT Credit Party, contravene any contractual
restriction, any law, rule or regulation or court or administrative decree or

 

 

order binding
on or affecting such CIT Credit Party or result in, or require the creation or imposition of
any lien, security interest or encumbrance on any of the properties of such CIT Credit
Party; (ii) this Fourth Amendment has been duly executed and delivered by each CIT Credit
Party and is the legal, valid and binding obligation of each CIT Credit Party, enforceable
in accordance with its terms; (iii) subject to the existence of the Designated Events of
Default, the representations and warranties contained in the CIT Credit Agreement and any
Loan Document are true and correct on and as of the date hereof and on and as of the date of
execution hereof as though made on and as of each such date; (iv) except for the Designated
Events of Default, no Default or Event of Default under the CIT Credit Agreement has
occurred and is continuing; (v) except for the Designated Events of Default, such CIT Credit
Party is in full compliance with all covenants and agreements contained in the Loan
Documents; and (vi) absent the effectiveness of this Fourth Amendment, CIT is entitled to
exercise immediately its rights and remedies under the Loan Documents, including, but not
limited to, the right to accelerate the maturity of the Obligations and enforce their rights
and remedies under the Collateral Documents.

     (c) Ratification of Guarantees. Each of the Guarantors hereby
acknowledges and consents to all of the terms and conditions of this Fourth Amendment and
hereby ratifies and confirms its respective guarantee under the Guaranty dated as of May 2,
2008 (the “Guaranty”) for the benefit of CIT. Each Guarantor hereby represents and
acknowledges that the execution and delivery of this Fourth Amendment shall in no way
diminish or modify its obligations as a Guarantor under the Guaranty and shall not
constitute a waiver by CIT of any of CIT’s rights against such Guarantor.

     6. Conditions Precedent. This Fourth Amendment shall become effective upon
the date (the “Effective Date”) that CIT has received all of the following:

     (a) An executed copy of this Fourth Amendment;

     (b) An executed copy of the Eleventh Bank Group Amendment, in form and
substance satisfactory to CIT; and

     (c) A copy of the fully-executed Alta Mesa Merger Agreement dated on or
before the date of this Fourth Amendment.

     7. Miscellaneous Provisions.

     (a) Survival of Representations and Warranties. All representations,
warranties and acknowledgments made in any Loan Document shall survive the execution and
delivery of this Fourth Amendment, and no investigation by CIT or any closing shall affect
the representations, warranties or acknowledgments or the right of CIT to rely upon them.

     (b) Effect of This Fourth Amendment. Except as otherwise expressly
stated herein, the CIT Forbearance Agreement, the CIT Credit Agreement and the other Loan
Documents remain in full force and effect in accordance with their terms, as amended hereby.
From and after the date hereof, the CIT Forbearance Agreement is deemed to be

 

 

the CIT
Forbearance Agreement, as amended hereby, and the parties agree that each of the terms of
the CIT Forbearance Agreement will be strictly adhered to on and after the date hereof,
except as expressly modified by this Fourth Amendment.

     (c) Amendments; Interpretation. No amendment or modification of any
provision of this Fourth Amendment shall be effective without the written agreement of CIT
and each CIT Credit Party, and no waiver of any provision of this Fourth Amendment or
consent to any departure by any CIT Credit Party therefrom, shall in any event be effective
without the written concurrence of CIT. Any waiver or consent shall be effective only in
the specific instance and for the specific purpose for which it was given.

     (d) Counterparts. This Fourth Amendment may be executed by one or
more of the parties hereto in any number of separate counterparts, each of which when so
executed shall be deemed to be an original, but all of which when taken together shall
constitute one and the same instrument, and all signature pages transmitted by electronic
transmission shall be considered as original executed counterparts. Each party to this
Fourth Amendment agrees that it will be bound by its own facsimile or electronic signature
and that it accepts the facsimile or electronic signatures of each other party.

     (e) Further Assurances. Each CIT Credit Party agrees to execute such
other and further documents and instruments as CIT may request to implement the provisions
of this Fourth Amendment and to perfect and protect the liens and security interests created
by the CIT Credit Agreement and the other Loan Documents.

     (f) Final Agreement. THE CIT CREDIT AGREEMENT, THE CIT FORBEARANCE
AGREEMENT AS AMENDED HEREBY AND THE OTHER LOAN DOCUMENTS REPRESENT THE ENTIRE EXPRESSION OF
THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE THIS AMENDMENT IS
EXECUTED. NONE OF THE LOAN DOCUMENTS MAY BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES. NO MODIFICATION, RESCISSION, WAIVER, RELEASE OR AMENDMENT
OF ANY PROVISION OF THIS AMENDMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY
EACH CIT CREDIT PARTY AND CIT.

[Signature Page Follows.]

 

 

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

	 	 	 	 	 
	 	THE CIT CREDIT PARTIES:

THE MERIDIAN RESOURCE CORPORATION

 	 
	 
	 	By:  	/s/ Steven G. Ives
 	 
	 	 	Name:  	Steven G. Ives 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	TMR DRILLING CORPORATION

 	 
	 
	 	By:  	/s/ Steven G. Ives
 	 
	 	 	Name:  	Steven G. Ives 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	THE MERIDIAN RESOURCE & EXPLORATION LLC

 	 
	 
	 	By:  	/s/ Steven G. Ives
 	 
	 	 	Name:  	Steven G. Ives 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	CIT:

THE CIT GROUP/EQUIPMENT FINANCING, INC.

 	 
	 
	 	By:  	/s/ G. Graham Sones
 	 
	 	 	Name:  	G. Graham Sones 	 
	 	 	Title:  	Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]