Document:

Exhibit

EXHIBIT 10.7

December 20, 2018

MERIDIAN ENERGY LLC
2129 LOOSCAN LANE
HOUSTON, TEXAS 77019

Ladies and Gentlemen:

This letter agreement (as the same may be amended, restated or otherwise modified, this “Agreement”) sets forth the mutual understanding and agreement by and among Alta Mesa Services, LP, a Delaware limited partnership (the “Company”), Randy Limbacher (“Limbacher”), John H. Campbell, Jr. (“Campbell”) and Mark P. Castiglione (collectively with Limbacher and Campbell, the “Consultants”), and Meridian Energy LLC, a Delaware limited liability company (“Meridian”). The Company, Meridian and each Consultant are referred to individually herein as a “Party” and collectively as the “Parties”. 

In consideration of the provisions herein, each of the Parties hereby agrees as follows:

1.    Engagement; Services. Subject to the terms and conditions specified herein, during the Term (as defined below), the Company engages Meridian, and Meridian accepts such engagement, as an independent contractor to provide certain specified services to the Company and certain of its Affiliates (as defined below) as designated by the Board (as defined below) from time to time (the “Company Group”). Meridian shall provide to the Company the services of the Consultants with each Consultant to serve as an officer of Alta Mesa (as defined below) and such other members of the Company Group as designated by the Board from time to time in the positions identified opposite the name of such Consultant on Exhibit A hereto, reporting to the board of directors (the “Board”) of Alta Mesa Resources, Inc., a Delaware corporation (“Alta Mesa”). Each Consultant shall perform all duties and functions customarily performed by the applicable officer position for a business of the size and nature similar to that of the Company Group (collectively, the “Services”), and such other duties as may be assigned to such Consultant by the Board.

2.    Services Fee; Expenses; Bonuses; Fees.

(a)     Services Fee and Expenses. During the Term, the Company shall (i) pay (or cause to be paid) a monthly fee in the amount set forth on Exhibit B hereto (the “Services Fee”) to Meridian, with such payments allocated among Meridian, its Consultants and other employees of Meridian for salaries and benefits as set forth on Exhibit B and (ii) reimburse Meridian for all documented, reasonable, out-of-pocket business expenses incurred in connection with providing the Services in accordance with the Company’s expense reimbursement policies and practices. The Services Fee shall be prorated for any calendar month in which the Term is terminated or expires. In the event that any Consultant or other employee of Meridian resigns or is terminated, Exhibit B shall be revised to remove the Services Fee and Regular Bonus (as defined below) allocable to, and to reduce the Milestone Bonus (as defined below) by the pro rata share attributable to, such Consultant or employee. Meridian and the Consultants shall be prudent and manage their individual expenses incurred in connection with providing the Services in accordance with a commercially reasonable standard. The Company shall pay (or cause to be paid) to Meridian (A) following the beginning of each month during the Term (but in no event later than five (5) business days) the applicable Services Fee and (B) following receipt by the Company of supporting invoices, reasonable, out-of-pocket business expenses incurred in connection with providing the Services in accordance with the Company’s expense reimbursement policies and practices. 
    
(b)     Regular Bonuses. During the Term, the Company shall pay (or cause to be paid) a quarterly bonus to Meridian in the amount set forth on Exhibit B hereto (the “Regular Bonuses”), with such payments allocated among Meridian, its Consultants and other employees of Meridian as set forth on Exhibit B. The Company shall pay (or cause to be paid) to Meridian the Regular Bonuses within thirty (30) days after the final day of each calendar quarter during the term. 

(c)     Milestone Bonuses. Prior to each of January 31, 2019 and July 31, 2019, Meridian, the Consultants and the Board (or a committee thereof) shall negotiate in good faith with respect to reasonable performance metrics with respect to the six-month period beginning January 1, 2019 (the “First Milestone Period”) and July 1, 2019 (the “Second Milestone Period”), as applicable, the achievement of which will earn Meridian a performance bonus up to the amount set forth under the heading Milestone Bonus on Exhibit B (the “Milestone Bonuses”). Meridian shall provide the Board (or a committee thereof) with information sufficient for the Board (or a committee thereof) to make a determination of, and the Board (or a committee thereof), as soon as reasonably practical and in any event within sixty (60) days following receipt of such necessary information, shall make a determination as to whether or not any or all of the performance metrics were 

achieved. If the Board (or a committee thereof) determines that any or all of the applicable performance metrics were achieved, then the Company shall pay (or cause to be paid) to Meridian the applicable portion of the Milestone Bonuses that was earned as promptly as practical, and in any event within thirty (30) days of such determination by the Board (or a committee thereof) as to the achievement of such performance metrics. 

(d)     Transaction Fees. The Company will pay Meridian’s reasonable attorneys’ fees incurred for drafting and preparation of this Agreement and related agreements by Locke Lord, LLP, following the Company’s receipt of invoices for such attorneys’ fees in accordance with the Company’s expense reimbursement policies and practices.

(e)     Access. The Company will provide to the Consultants and Meridian’s employees access to offices and parking at the Company’s offices, as well as reasonable administrative and related support consistent with the Company’s past practices required for the Consultants and Meridian’s employees to perform their duties and responsibilities for the Company, including the Services.

3.     Term and Termination.

(a)     Term. The term of this Agreement (the “Term”) shall commence on January 1, 2019, and continue until December 31, 2019 (the “Initial Term”) or the earlier termination of this Agreement pursuant to Section 3(b) or Section 3(c). At the end of the Initial Term, the Parties may jointly renew and extend the Term in 6-month increments. 

(b)     Termination by the Company. Notwithstanding Section 3(a), the Company may terminate this Agreement by giving written notice (“Notice of Termination”) to Meridian: 

(i)     in the event of (A) a material breach by Meridian or any of the Consultants of Section 5(a), Section 5(c), Section 8, Section 20(a) or Section 21 (the “Subject Obligations”), (B) a material breach by Meridian or any of the Consultants of any of its or their obligations under this Agreement other than the Subject Obligations, at any time following the date that is thirty (30) days after Meridian’s receipt of the Company’s written notice of such material breach if such breach is not remedied during such period or (C) fraud, willful misconduct or gross negligence by Meridian or the Consultants; 

(ii)     if either Limbacher or Campbell leaves Meridian and/or his designated position with the Company during the Term other than as a result of death or disability; and/or 
    
(iii)     at any time following the date that is one month following the date of this Agreement provided that the Company has given at least thirty (30) days’ notice. 

(c)     Termination by Meridian. Notwithstanding Section 3(a), Meridian may terminate this Agreement by giving a Notice of Termination to the Company: 

(i)     in the event of a material breach by the Company of any of its obligations under this Agreement, at any time following the date that is thirty (30) days after the Company’s receipt of Meridian’s written notice of such material breach if such breach is not remedied during such period; and/or 

(ii)     at any time following the date that is one month following the date of this Agreement provided that Meridian has given the Company at least thirty (30) days’ notice.

(d)     Effect of Termination. Notwithstanding anything to the contrary:

(i)     upon a termination or expiration of the Term each of this Section 3(d), Sections 5 through 9 (inclusive) and Sections 11 through 20 (inclusive) shall survive in accordance with its express terms, and 

(ii)     in the event of a termination by the Company pursuant to Section 3(b)(iii) or by Meridian pursuant to Section 3(c)(i) (collectively, the “Subject Termination Rights”), the Company shall have no further obligation to Meridian or the Consultants except for payment by the Company: (A) of the Subject Termination Amount (as defined below), which amount shall be paid in a lump-sum within sixty (60) days following such termination and (B) if such termination is after June 30, 2019 and a Milestone Bonus attributable to the First Milestone Period is determined to be earned pursuant to Section 2(c), such applicable Milestone Bonus, which amount shall be paid in accordance with Section 2(c); 

(iii)     in the event of a termination other than by an exercise of the Subject Termination Rights, the Company shall have no further obligation to Meridian or the Consultants except for payment by the Company of accrued but unpaid (A) Services Fees that relate to the period ending on the date of termination, which amount shall be paid in a lump-sum within sixty (60) days following such termination and/or (B) prorated Regular Bonuses for the portion of the calendar quarters that were completed prior to such expiration or termination of the Term, which amount shall be paid in accordance with Section 2(b). 

(e)     “Subject Termination Amount” means (i) the total amount of Services Fee attributable to the Initial Term as set forth on Exhibit B (less any Services Fee paid pursuant to the terms of this Agreement prior to such termination), plus (ii) the total amount of Regular Bonuses attributable to the Initial Term as set forth on Exhibit B (less any Regular Bonuses paid pursuant to the terms of this Agreement prior to such termination) plus (iii) if such termination is (A) on or prior to June 30, 2019, the full amount of the Milestone Bonus attributable to the First Milestone Period or (B) following June 30, 2019, the full amount of the Milestone Bonus attributable to the Second Milestone Period.

4.     Workers’ Compensation or Unemployment Compensation; Taxes; Offsets.

(a)     Meridian and the Consultants acknowledge and agree that the Company will not be required (i) to withhold federal, state or local income, gross receipts or other taxes from any amounts paid hereunder or to otherwise comply with any state or federal law concerning the collection of income, gross receipts or other taxes at the source of payment of wages with respect to any sums paid hereunder, (ii) under the Federal Unemployment Tax Act or the Federal Insurance Contribution Act, to pay or withhold taxes for unemployment compensation or for social security on behalf of Meridian or any of the Consultants with respect to any amounts paid hereunder and (iii) under the laws of any state, to obtain workers’ compensation insurance or to make state unemployment compensation contributions on behalf of Meridian or any of the Consultants. 

(b)     Meridian shall be responsible for the payment of its and the Consultants’ portion of any and all required federal, state, local and foreign taxes (including self-employment taxes) incurred, or to be incurred, in connection with any amounts payable to Meridian or the Consultants under this Agreement, and Meridian and the Consultants each shall indemnify and hold harmless the Company in relation to the payment of any and all withholding taxes, employee social security, employee national insurance, disability, unemployment taxes and such other federal, state, local and foreign taxes due in any country, tax withholding and tax deductions, and any interest and penalties applied thereon, on any earnings, payments or other compensation made with respect to this Agreement and the Services provided hereunder. With respect to any amounts that may be owed to the Company from Meridian as a result of the indemnity described above in this Section 4(b), the Company may (but will not be required to) offset any amounts due by Meridian to the Company against any amounts the Company owes Meridian hereunder.

5.     Representations and Warranties.

(a)     Meridian hereby represents and warrants to the Company as follows:

(i)     Meridian is a limited liability company duly organized and validly existing under the laws of the State of Delaware.

(ii)     Meridian has full power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby, and no further actions on the part of Meridian are necessary to approve and authorize the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby. This Agreement has been duly authorized, executed and delivered by Meridian and constitutes a valid and binding agreement, enforceable against Meridian in accordance with its terms, except as the enforceability hereof may be subject to applicable bankruptcy, insolvency, reorganization, or other similar laws affecting creditors’ rights generally and to general principles of equity. 

(iii)     None of the execution and delivery by Meridian of this Agreement, the consummation of the transactions contemplated hereby, or compliance with any of the provisions hereof, will (x) result in the violation of any order, writ, injunction, decree, or ruling of any court or governmental entity, or to the knowledge of Meridian, any law, rule, or regulation applicable to Meridian, (y) result in the breach of any of the terms, conditions, or provisions of any note, bond, mortgage, indenture, deed of trust, license, franchise, permit, contract, agreement, or other instrument or commitment or obligation of Meridian or any of its assets, or (z) require any consent or approval of, or notice to, or filing or registration with, any Person. 

(iv)     Meridian does not have any agreements with any other Person that prohibits Meridian from, or that Meridian will breach as a result of, providing Services to the Company or any of its Affiliates or fulfilling Meridian’s duties and obligations to the Company or its Affiliates pursuant to this Agreement. Meridian has not breached any non- competition, non-solicitation or confidentiality duties imposed on it in any respect that will adversely affect any of the Company or its Affiliates. 

(b)     The Company hereby represents and warrants to Meridian and each Consultant as follows:

(i)     The Company is a limited partnership duly organized and validly existing under the laws of the State of Delaware. 

(ii)     The Company has full power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby, and no further actions on the part of the Company are necessary to approve and authorize the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby. This Agreement has been duly authorized, executed and delivered by the Company and constitutes a valid and binding agreement, enforceable against the Company in accordance with its terms, except as the enforceability hereof may be subject to applicable bankruptcy, insolvency, reorganization, or other similar laws affecting creditors’ rights generally and to general principles of equity.
    
(iii)     None of the execution and delivery by the Company of this Agreement, nor the consummation of the transactions contemplated hereby, or compliance with any of the provisions hereof, will (x) result in the violation of any order, writ, injunction, decree, or ruling of any court or governmental entity, or to the knowledge of the Company, any law, rule, or regulation applicable to the Company, (y) result in the breach of any of the terms, conditions, or provisions of any note, bond, mortgage, indenture, deed of trust, license, franchise, permit, contract, agreement, or other instrument or commitment or obligation of the Company or any of its assets, or (z) require any consent or approval of, or notice to, or filing or registration with, any Person.

(c)     Each Consultant hereby represents and warrants to the Company as follows:

(i)     This Agreement has been duly authorized, executed and delivered by such Consultant and constitutes a valid and binding agreement, enforceable against such Consultant in accordance with its terms, except as the enforceability hereof may be subject to applicable bankruptcy, insolvency, reorganization, or other similar laws affecting creditors’ rights generally and to general principles of equity.

(ii)     None of the execution and delivery by such Consultant of this Agreement, the consummation of the transactions contemplated hereby or compliance with any of the provisions hereof, will (x) result in the violation of any order, writ, injunction, decree, or ruling of any court or governmental entity, or to the knowledge of such Consultant, any law, rule, or regulation applicable to such Consultant, (y) result in the breach of any of the terms, conditions, or provisions of any note, bond, mortgage, indenture, deed of trust, license, franchise, permit, contract, agreement, or other instrument or commitment or obligation of such Consultant or any of his assets, or (z) require any consent or approval of, or notice to, or filing or registration with, any Person.

(iii)     Such Consultant does not have any agreements with any current or prior employer or any other Person that prohibits such Consultant from, or that such Consultant will breach as a result of, providing Services to the Company or any of its Affiliates or fulfilling such Consultant’s duties and obligations to the Company or its Affiliates pursuant to this Agreement. Such Consultant has not breached any noncompetition, non-solicitation or confidentiality duties imposed on him with respect to any current or prior employer or any other Person in any respect that will adversely affect any of the Company or its Affiliates. 

(d)     Each of the Parties acknowledges and agrees that this Section 5 contains all of the representations and warranties by the Parties with respect to the subject matter of this Agreement.

6.     Limitation of Liability; Indemnification.

(a)     None of Meridian or any of the Consultants, shall be liable, responsible, or accountable in damages or otherwise to the Company Group, or its owners, members, employees, agents or assigns, for any action taken or failure to act (EVEN IF SUCH ACTION OR FAILURE TO ACT CONSTITUTED THE SOLE, CONCURRENT OR COMPARATIVE NEGLIGENCE OF MERIDIAN OR SUCH CONSULTANT) in connection with the Services provided hereunder, unless such act or failure to act was the result of fraud, willful misconduct or gross negligence on the part of Meridian or such Consultant. 

(b)     Concurrently with the execution and delivery of this Agreement, the Company is entering into indemnification agreements with each Consultant on substantially the same terms as applicable to the directors and officers of Alta Mesa immediately prior to the date hereof. The Company shall use its reasonable best efforts to cause the Consultants to be named insureds under the director and officer insurance policies maintained by the Company Group as soon as practicable following the execution and delivery of this Agreement. The Company shall, to the extent permitted by Applicable Law, indemnify and hold harmless Meridian from and against any and all damages, payments, losses, costs, expenses or other liabilities (including legal fees and expenses) that arise out of or are attributable to Meridian’s provision of the Services under this Agreement to the same extent Meridian would be entitled to such indemnification if Meridian were a party to such an indemnification agreement. 

7.     Independent Contractor. Meridian and the Consultants are engaged in a business that is independent from the Company, and Meridian and the Consultants shall perform the Services and each of their obligations hereunder as independent contractors. In no event shall Meridian or the Consultants be deemed to be employees of the Company (or any of its Affiliates), and Meridian and the Consultants shall not at any time be entitled to any employment rights or benefits from the Company (or any of its Affiliates). If any Consultant is reclassified by a state or federal agency or court as an employee of the Company or its Affiliate, the Consultant will receive no benefits except those mandated by law even if by the terms of the Company’s or its Affiliates’ benefit plans in effect at the time of such reclassification the Consultant would otherwise be eligible for such benefits. Except as specifically provided in the Services or authorized by the Board (or a committee or designee thereof), Meridian and the Consultants shall not at any time communicate or represent to any third party that in performing the Services hereunder, Meridian or the Consultants are employees of the Company (or any of its Affiliates). Meridian and the Consultants shall be solely responsible for making all applicable tax filings and remittances with respect to amounts paid pursuant to this Agreement and shall indemnify and hold the Company, its Affiliates and its and their respective representatives harmless for all claims, damages, costs and liabilities arising from Meridian’s or any Consultant’s failure to do so. It is not the purpose or intention of this Agreement or the Parties to create, and the same shall not be construed as creating, any partnership, partnership relation, joint venture, agency, or employment relationship. 

8.     Confidentiality; Confidential Information; Intellectual Property; Publicity. 

(a)     During the Term of this Agreement and following the expiration or termination of this Agreement, Meridian and each Consultant shall, and Meridian shall inform and direct each of its employees, attorneys, accountants, fiduciaries, advisers, representatives and Affiliates that have access to non-public information related to this Agreement, the Company or  any of its Affiliates (“Confidential Information”) to, keep confidential and not disclose any Confidential Information, and not use any Confidential Information other than in connection with providing the Services in accordance with this Agreement, without the express written consent of the Company. For the purpose of clarity, any reports developed by or on the behalf of Meridian or any of the Consultants or any of the Company Group during the Term in connection with the Services shall be deemed Confidential Information. The restrictions set forth in this Section 8(a) do not apply to any disclosure required by Applicable Law (as defined below), so long as (x) prior to such disclosure the Person subject to such disclosure obligations provides the Company with written notice and an opinion of counsel stating that such disclosure is required by Applicable Law and the basis upon which the disclosure is asserted to be required, and (y) the Person subject to such disclosure obligations uses commercially reasonable efforts to oppose or mitigate any such disclosure. 

(b)     All Confidential Information (together with all intellectual property or other assets developed or acquired by Meridian or any Consultant in connection with the Services (the “Developed IP”)) shall remain at all times the property of the Company, and for the avoidance of doubt, all Developed IP is hereby transferred and assigned to the Company. Meridian and each of the Consultants shall immediately return to the Company (or, at the Company’s election, destroy) all Confidential Information and/or Developed IP upon a Notice of Termination or expiration of the Term and, in any event, upon the Company’s request from time to time. Upon the request of the Company, Meridian and each Consultant shall promptly provide written confirmation of the assignment of such Developed IP and compliance with this Section 8.

(c)     Without limiting the generality of Section 8(a), none of Meridian or any of the Consultants shall issue any press releases or make any other public statements with respect to this Agreement, the Company or its Affiliates, or the transactions contemplated hereby, without the prior written approval of the Company. 

(d)     Meridian and each Consultant acknowledge that all of the Confidential Information is or may be material, non-public and/or price-sensitive information and that the use of such information may be regulated or prohibited by Applicable Law, including securities laws relating to insider dealing and market abuse. Meridian and the Consultants each shall not use any Confidential Information for any purpose prohibited by applicable legal or regulatory authority. Any unauthorized disclosure of Confidential Information could be injurious to the Company, its clients or others and could violate federal 

securities laws, and, notwithstanding anything to the contrary, any failure to maintain the confidentiality of Confidential Information may (i) result in immediate termination of the Term or, at the Company’s election, this Agreement and (ii) subject each of Meridian and the Consultants to civil and criminal liability and monetary damages.

(e)     Notwithstanding the foregoing, nothing herein shall prevent Meridian or a Consultant from making a good faith report of possible violations of Applicable Law to any governmental agency or entity or making disclosures that are protected under the whistleblower provisions of Applicable Law, and no individual (including the Consultants) shall be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is: (i) made (x) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney and (y) solely for the purpose of reporting or investigating a suspected violation of law; (ii) made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; or (iii) protected under the whistleblower provisions of applicable law. In the event a Consultant files a lawsuit for retaliation by Meridian for such Consultant’s reporting of a suspected violation of law, such Consultant may (x) disclose a trade secret to such Consultant’s attorney and (y) use the trade secret information in the court proceeding related to such lawsuit, in each case, if such Consultant (A) files any document containing such trade secret under seal and (B) does not otherwise disclose such trade secret, except pursuant to court order. 

9.     Document Retention; Audit Rights. The Parties shall retain documents and other information relating to the Services for at least the time period that is required by Applicable Law. Promptly following termination of this Agreement, Meridian shall deliver to such Person as the Company may designate in writing, copies of all files and records pertaining to the Company Group and other information about the assets and operations of the Company Group reasonablyrequested by the Company (which are in the possession of Meridian or the Consultants). At any time during the Term and for a period of one year following the expiration or termination of this Agreement, the Company shall have the right, exercisable at its option and expense, to review and copy the records relating to the Company Group and/or the Services maintained by Meridian and/or the Consultants, and if necessary, to verify the performance by Meridian and the Consultants of their obligations under this Agreement, and to audit such records. This audit right may be exercised from time to time (but in no event more than once in any calendar quarter) during normal business hours upon reasonable notice to Meridian. The Company shall use its commercially reasonable efforts to conduct any such audit or examination in a manner that minimizes the inconvenience or disruption to Meridian.

10.     Services Standard.

(a)     Meridian and each Consultant shall perform the Services in compliance at all times with (i) prevailing standards of accepted business practice and ethics, (ii) all Applicable Laws (as defined below), (iii) reasonable and prudent practices, as relevant to the Services, of the oil and gas industry, and (iv) the terms of this Agreement. Meridian will (A) maintain separate accounts, financial statements, books and records from those of the Company Group and (B) prevent any funds or accounts of the Company Group from being commingled with the funds or accounts of Meridian.

(b)     Without prejudice to the generality of Section 10(a), Meridian shall ensure that the Services are at all times provided in compliance with the requirements of the Bribery Act, the Foreign Corrupt Practices Act and any other Applicable Laws and practices relating to anti-bribery and anti-corruption.

(c)     Meridian and the Consultants acknowledge that the Company Group is subject to and has, and will have, various compliance policies and procedures in place. As such, the engagement hereunder to provide the Services will be subject to, among other things, adherence to such applicable policies and procedures and other applicable compliance manuals for which Meridian and the Consultants are provided copies (including such policies, procedures and/or manuals as may be approved by the Board after the date hereof). Meridian hereby agrees to require the Consultants to execute any customary forms and agreements in connection therewith.

(d)     Promptly (and in any event, within three (3) business days) upon becoming aware of (i) any actual or potential Conflict of Interest or (ii) any material lawsuit, claim or arbitration threatened in writing or filed against or involving Meridian, a Consultant or any of their Affiliates or any trust or vehicle owned or controlled by a Consultant or any of its Affiliates, Meridian shall disclose such actual or potential Conflict of Interest or such lawsuit, claim or arbitration to the Company. A “Conflict of Interest” shall exist when a Consultant engages in, or plans to engage in, any activities, associations, or interests that conflict with, or create an appearance of a conflict with (A) Meridian (whether or not in connection with the provision of the Services) or (B) such Consultant’s duties, responsibilities, authorities, or obligations for and to the Company (or any of its Affiliates) in connection with the provision of the Services. Notwithstanding the foregoing, Consultants may, without violating this Section 10(d), devote a portion of Consultant’s business time and attention to the activities described on Exhibit C, so long as such commitment does not adversely affect the Consultant’s ability to satisfy the Consultant’s obligations to the Company as described in this Agreement, including providing the Services. 

11.     Certain Definitions; Interpretation.

(a)     “Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such Person. For this purpose, “control” shall have the meaning given such term under Rule 405 of the Securities Act of 1933. For the avoidance of doubt, with respect to the Company, the term “Affiliate” shall not include Meridian, the Consultants or any of their Affiliates.

(b)     “Applicable Laws” means all statutes, laws (including all federal and state securities laws), ordinances, codes, regulations, rules or requirements of any government, governmental authority, regulatory agency or self-regulatory body (including FINRA) or exchange wherever located with jurisdiction over (i) any of Meridian, the Consultants or any of their respective businesses, properties and assets or (ii) the Company and its Affiliates.

(c)    “Person” shall mean any individual, natural person, corporation (including any non-profit corporation), unlimited liability corporation, general partnership, limited partnership, limited liability partnership, joint venture, estate, trust, company (including any company limited by shares, limited liability company or joint stock company), incorporated or unincorporated association, governmental authority, firm, society or other enterprise, organization or other entity of any nature.

(d)      All references to “including” shall be construed as meaning “including without limitation.” All references to dollars refer to United States dollars. The words “hereof,” “hereto,” “hereby,” “herein,” “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular section or article in which such words appear. Unless the context requires otherwise, all references to laws, regulations, contracts, agreements and instruments refer to such laws, regulations, contracts, agreements and instruments as they may be amended from time to time. 

(e)     No provision of this Agreement or any related document will be construed against or interpreted to the disadvantage of any Party by any court or other governmental or judicial authority by reason of such Party having or being deemed to have structured or drafted such provision.

12.     Non-Disparagement. During the Term of this Agreement and following the expiration or termination of this Agreement, none of Meridian or the Consultants shall (and each of Meridian and the Consultants shall cause their respective Affiliates not to) disparage the Company Group or any of its directors, officers, agents, representatives, equity holders or Affiliates, either orally or in writing, at any time. In addition, during the Term of this Agreement and following the expiration or termination of this Agreement, the Company Group shall cause the members of the Board and the Company’s officers not to disparage Meridian or any of its directors, officers, agents, representatives, equity holders or Affiliates (including the Consultants), either orally or in writing, at any time. Nothing in this Section 12 will prohibit disclosure of information that is required to be disclosed to enforce this Agreement or comply with Applicable Law or order of a court or other governmental authority.

13.     Governing Law; Venue; and Jurisdiction.
    
(a)     This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to any choice of law principle that would result in the application of any other law. (b) Subject to Section 14, each Party hereby irrevocably (i) submits to the exclusive jurisdiction of the federal courts located in Wilmington, Delaware, in connection with any action, suit or proceeding arising in connection with any disagreement, dispute, controversy or claim arising out of or relating to this Agreement, and irrevocably and unconditionally agrees that any such action, suit or proceeding shall be heard and determined in such court; and (ii) waives the defense of an inconvenient forum to the maintenance of any such action or proceeding. Each Party further agrees to accept service of process out of any of the before mentioned courts in any such dispute by registered or certified mail addressed to the Party at the address set forth in Section 16.

(c)     EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT.

14.     Dispute Resolution; Specific Performance.
    
(a)     Subject to Section 14(d), any claim or dispute among any of the Parties arising out of or in relation to this Agreement (or any alleged breach thereof) shall be finally determined by arbitration in accordance with the rules then in 

force by the American Arbitration Association. The arbitration proceedings shall take place in Wilmington, Delaware, or such other location as the Parties in dispute hereafter may agree upon; and such proceedings shall be governed by the laws of the State of Delaware as such laws are applied to agreements between residents of such State entered into and to be performed entirely within that State. 

(b)     The Parties shall agree upon one arbitrator, who shall be an individual skilled in the legal and business aspects of the subject matter of this Agreement and of the dispute. If the Parties in dispute cannot agree upon one arbitrator, each Party in dispute shall select one arbitrator and the arbitrators so selected shall select a third arbitrator. In the event the arbitrators cannot agree upon the selection of the third arbitrator, the third arbitrator shall be appointed by the American Arbitration Association at the request of any of the Parties in dispute. The arbitrators shall, if possible, be individuals skilled in the legal and business aspects of the subject matter of this Agreement and of the dispute.

(c)     The decision rendered by the arbitrator or arbitrators shall be accompanied by a written opinion in support thereof. The decision shall be final and binding upon the Parties in dispute without right of appeal. Judgment upon the decision may be entered into by any court having jurisdiction thereof, or application may be made to that court for a judicial acceptance of the decision and any other enforcement. Costs of the arbitration shall be assessed by the arbitrator or arbitrators against any or all of the Parties in dispute, and shall be paid promptly by such Party. Each Party shall use best efforts to cause any proceeding conducted pursuant to Section 14(a) to be held in confidence by the American Arbitration Association, the arbitrators and each of the parties to such proceeding and their respective Affiliates, and all information relating to or disclosed by any party thereto in connection with such proceeding shall be treated by the parties thereto, their Affiliates and the arbitrators as confidential business information and no disclosure of such information shall be made by any party thereto, its Affiliates or the arbitrators without the prior written consent of the party thereto furnishing such information in connection with the arbitration proceeding, except as required by Applicable Law or to enforce any award of the arbitrators.

(d)     A violation by Meridian or any Consultant of any of the covenants contained in Section 8, Section 12, Section 20 or Section 21, would cause irreparable damage to the Company in an amount that would be material but not readily ascertainable, and any remedy at law (including the payment of damages) would be inadequate. Accordingly, the Company shall be entitled (without the necessity of showing economic loss or other actual damage) to injunctive relief in any court of competent jurisdiction for any actual or threatened breach of any of such covenants in addition to any other legal or equitable remedies it may have, and Meridian and each Consultant specifically consents to the exclusive jurisdiction of the United States District Court for the District of Delaware, or if that court is unable to exercise jurisdiction for any reason, to the exclusive jurisdiction of the courts of the State of Delaware located in Wilmington, for this purpose. Meridian and each Consultant hereby waive their respective rights to any claim of improper or inconvenient venue or forum. Nothing in this Section 14(d) shall be construed as a waiver of the rights that the Company may have for damages under this Agreement or otherwise, and all of the Company’s rights shall be unrestricted.

15.     Assignment; Amendment. Neither this Agreement nor any of the rights, interests, duties or obligations hereunder shall be assigned by any of Meridian or the Consultants without the express written consent of the Company. Without the prior written consent of the Company, none of Meridian or the Consultants shall engage or hire any third party for the provision of any of the Services. This Agreement may only be modified or amended with the prior written consent of both the Company and Meridian. 

16.     Notices. All notices and other communications to be given under this Agreement shall be in writing and may be given by any of the following methods: (a) personal delivery; (b) facsimile or email during normal business hours provided that receipt of any such notice given by email is confirmed; or (c) overnight delivery service. Notices shall be sent to the appropriate Party at its address given below (or at such other address for such Party as shall be specified by notice given hereunder): 

(a)     If to the Company:

Alta Mesa Services, LP
15021 Katy Freeway
4th Floor
Houston, Texas 77094-1813
Attention: Kim Warnica
Email: kwarnica@altamesa.net

(b)     If to Meridian or any Consultant:

Meridian Energy LLC
2129 Looscan Lane
Houston, Texas 77019
Attention: Randy Limbacher
Email: r.limbacher@usa.net

17.     Severability. Should any provision of this Agreement for any reason be declared invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of any of the other provisions of this Agreement, which remaining provisions shall remain in full force and effect and the application of such invalid or unenforceable provision to Persons or circumstances other than those as to which it is held invalid or unenforceable shall be valid and enforced to the fullest extent permitted by law. 

18.     Counterparts. This Agreement may be executed in one or more counterparts (including by facsimile or other electronic means), each of which shall be deemed to be an original, but all of which will constitute one and the same instrument.

19.     Entire Agreement. This Agreement constitutes the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings (whether written or oral), among the Parties relating to such subject matter.

20.     Certain Actions.

(a)     During the Term and for a period of one (1) year following the expiration or termination of this Agreement, each of Meridian and each Consultant agrees that it shall not, and shall cause its Affiliates not to, directly or indirectly, without obtaining the express written consent of the Company, (i) solicit (or direct to be directly or indirectly solicited) or employ or otherwise seek to employ any employee of the Company or any of its Affiliates or individual who was an employee of the Company or any of its Affiliates during the six months preceding such solicitation (the “Restricted Employees”) or (ii) solicit or encourage any customers, suppliers, partners or distributors of, or other Persons known by Meridian or such Consultant as having a business relationship with, the Company or any of its Affiliates to cease doing business with, alter the terms of its business with or otherwise alter its relationship with, the Company or any of its Affiliates, as applicable; provided, however, that this Section 20(a) shall not prohibit any advertisement or general solicitation that is not specifically targeted at the Restricted Employees.

(b)     During the Term and, in the event of a termination or expiration of this Agreement other than by an exercise of the Subject Termination Rights, for a period of one (1) year following the expiration or termination of this Agreement, each of Meridian and each Consultant agrees that it shall not, and shall cause its Affiliates not to, directly or indirectly, without obtaining the express written consent of the Company, invest in or provide services, in any capacity, directly or indirectly (whether as proprietor, stockholder, director, partner, employee, agent, independent contractor, consultant, trustee, or in any other capacity), with respect to any entity (a “Competing Enterprise”) the majority of whose (i) oil and gas exploration, production and/or midstream assets, by asset value, are located in the Restricted Territory (as defined below) and/or (ii) revenues are derived from operations in the Restriction Territory; provided, however, neither Meridian nor any Consultant shall be deemed to be participating or engaging in a Competing Enterprise solely by virtue of the ownership of not more than one percent (1%) of any class of stock or other securities which are publicly traded on a national securities exchange or in a recognized over-the-counter market. “Restricted Territory” means the counties of Kingfisher, Garfield, Blaine and Major in Oklahoma. 

(c)     During the Term, Meridian shall cause the Consultants to provide substantially all of their business time (other than time spent serving on boards that the Board and such Consultant have agreed the Consultant may serve on, including the boards referenced in Exhibit C hereto) to performing their responsibilities with respect to the Services and, notwithstanding anything in this Agreement to the contrary, during the Term, none of Meridian, any of its subsidiaries or any of the Consultants (with respect to Meridian or any of its subsidiaries) may, without the prior written consent of the Company, (a) operate any business that is not operated in connection with the Services (other than those businesses specifically identified in Exhibit C hereto) or (b) issue any equity or other securities (or options therefor) to any Person.

(d)     Meridian and each Consultant agrees that the covenants and restrictions in this Section 20 (i) are reasonable in scope and time, (ii) are reasonable restrictions to protect the legitimate business interests and goodwill of the Company and its Affiliates, and (ii) are ancillary to or a part of an otherwise enforceable contract that is supported by adequate consideration. In the event any provision of this Section 20 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its 

being too extensive in any other respect, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner.
    
21.     Cooperation Obligations.

(a)     Meridian and the Consultants acknowledge that the Company and its Affiliates are subject to certain requirements of Applicable Law, including public reporting obligations under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), and that nothing in this Agreement is intended or will be interpreted to limit or constrain compliance therewith. Meridian and the Consultants shall, and each shall cause their respective Affiliates to, during and after the Term reasonably cooperate with the Company and provide such information regarding Meridian, the Consultants, the Services and this Agreement as the Company determines is reasonably necessary or appropriate to allow the Company to satisfy requirements of Applicable Law with respect thereto. Further, during and after the Term, Meridian and the Consultants agree to reasonably cooperate with the Company and its Affiliates in connection with any claims, causes of action, investigations, hearings, proceedings, arbitrations, lawsuits, or other matters that have been brought, or may be brought in the future, against or on behalf of the Company that relate to events or occurrences that transpired during the Term.

(b)     The Company acknowledges that as of the date of this Agreement none of the Consultants is performing, and without the prior written approval of the applicable Consultant during the Term, no Consultant will be required to perform, in the role of Alta Mesa’s principal executive officer, principal financial officer or controller or principal accounting officer. During the Term, if a Consultant is performing in the role of Alta Mesa’s principal executive officer, principal financial officer or controller or principal accounting officer, such Consultant shall (i) supervise and manage the preparation of any filings required to be made by Alta Mesa or any other member of the Company Group with the SEC (the “Securities Act Filings”), including any annual, quarterly or current report required under the Exchange Act , and any registration statement filed under the Securities Act of 1933, as amended (the “Securities Act”), and, to the extent required under the Exchange Act, the Securities Act and the applicable rules and regulations thereunder, execute such filings for and on behalf of Alta Mesa or such member of the Company Group and (ii) in connection with any Securities Act Filing, execute any customary representation letters required by the independent accounting firm of Alta Mesa or any member of the Company Group and any certifications required under the Sarbanes- Oxley Act of 2002.

* * * * *

Please evidence your agreement with the foregoing by executing a copy of this Agreement and returning it to us.

	
		
	Very truly yours,

	 
	 

	ALTA MESA SERVICES, LP

	 
	 

	By:
	OEM GP, LLC

	 
	a Texas limited liability company,

	 
	its general partner

	 
	 

	By:
	ALTA MESA HOLDINGS, LP

	 
	a Texas limited partnership,

	 
	its sole member

	 
	 

	By:
	ALTA MESA HOLDINGS GP, LLC

	 
	a Texas limited liability company,

	 
	its general partner

	 
	 

	By:
	/s/ James T. Hackett

	 
	Name: James T. Hackett

	 
	Title:   Chairman of the Board

Accepted and agreed to as of the date first written above:
	
		
	MERIDIAN ENERGY LLC

	 
	 

	By:
	/s/ Randy Limbacher

	 
	Name: Randy Limbacher

	 
	Title:   Member

	 
	 

	/s/ Randy Limbacher

	Randy Limbacher

	 
	 

	/s/ John H. Campbell, Jr.

	John H. Campbell, Jr.

	 
	 

	/s/ Mark P. Castiglione

	Mark P. Castiglione

Exhibit A

Consultants

	
		
	Consultant
	Officer Role

	Randy Limbacher
	Interim President

	John Campbell, Jr.
	Interim Chief Operating Officer - Upstream

	Mark Castiglione
	Chief of Staff to the President

Exhibit B

Services Fee

(see attached)

Exhibit C

Permitted Ownership and Activities

Randy Limbacher

1. CARBO Ceramics: Limbacher is a member of the board of directors of CARBO Ceramics Inc., a Delaware corporation.

2. TransCanada: Limbacher is a member of the board of directors of TransCanada Corporation.

3. R&C Hidden Springs Ranch LLC: Limbacher is the Managing Partner of R&C Hidden Springs Ranch LLC, which invests in ranch land, timber, mineral interests, and recreational property in Rusk County, Texas and controls about 1,500 acres, and continues to purchase, land and minerals in a 3 to 5 mile radius surrounding the main property located at 2121 FM 1798 West in Laneville, Texas.

John Campbell, Jr.

1. Quantum Funds IV, V, and VI: Campbell owns less than (a) 5% of the membership interests in each of Fund 4-QEM IV, LLC, Fund 5-QEM V, LLC and Fund 6-QEM VI, LLC (collectively, the “Quantum LLCs”) and (b) 15% of the limited partnership interests in each of QEM IV Affiliates, LP, QEM V Affiliates, LP and QEM VI Affiliates, LP (collectively, the “QEM Affiliate Funds” and together with the Quantum LLCs, collectively, the “Quantum Funds”). Each of Campbell’s investments in the Quantum Funds is a passive investment and does not require any services of Campbell in the operation of the entities in which investments are held.

2. McKinney Investments: Campbell owns 5% of the limited partnership interests in McKinney Investments Partners, LP (the “McKinney Fund”). Campbell’s investment in the McKinney Fund is a passive investment and does not require any services of Campbell in the operation of the entity in which investment is held.

3. T&W I & II Income Fund: Campbell owns (a) 6.7% of the limited partnership interests in T&W Gas Income Partners I, LP (“T&W Fund I”) and (b) 15% of the limited partnership interests in T& W Gas Income Partners, II, LP (“T&W Fund II” and together with T&W Fund I, collectively, the “T&W Funds”). Each of Campbell’s investments in the T&W Funds is a passive investment and does not require any services of Campbell in the operation of the entities in which investments are held. Through the T&W Funds, Campbell holds a non-operated working interest, oil and gas investment in Ballard Exploration Company, Inc.

4. JCT 1 & 2 Kitchen: Campbell owns a 5% interest in JCT. Kitchen & Bar, which has two locations in Atlanta, Georgia, and such investments are passive investments and do not require any services of Campbell in the operation of the entities in which investments are held.Exhibit

EXHIBIT 10.8

EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the “Agreement”), is made and entered into as of January 7, 2019 (the “Effective Date”), by and between Alta Mesa Services, LP, a Texas limited partnership (the “Company”), John C. Regan (hereafter “Executive”) and, solely with respect to Section 41, Alta Mesa Holdings, LP, a Texas limited partnership (“Alta Mesa”). The Company and Executive may sometimes hereafter be referred to singularly as a “Party” or collectively as the “Parties.”
WITNESSETH:
WHEREAS, Alta Mesa Holdings, L.P. (the “Parent”), has entered into a Contribution Agreement by and among High Mesa Holdings, LP, High Mesa Holdings GP, LLC, Alta Mesa Holdings GP, LLC, Silver Run Acquisition Corporation II and certain other parties thereto, dated as of August 16, 2017, as the same may be amended from time to time, pursuant to which Silver Run Acquisition Corporation II acquired certain of the outstanding equity interests in Parent (the “Transaction”); and
WHEREAS, effective as of the Effective Date, the Company desires to secure the employment services of Executive subject to the terms and conditions hereafter set forth.
NOW, THEREFORE, in consideration of Executive’s employment with the Company, and the premises and mutual covenants contained herein, the Parties hereto agree as follows:
1.Employment Position and Defined Terms. During the Employment Period (as defined in Section 4), the Company shall employ Executive, and Executive shall serve, as Vice President and Chief Financial Officer of the Company. During the Employment Period, Executive may also serve as the Chief Accounting Officer of the Company as part of his duties as Chief Financial Officer if so directed at any time by the Board or the Chief Executive Officer of the Company for no additional compensation.  In the event that Executive is directed to also serve as the Company’s Chief Accounting Officer, he shall serve in that capacity during the Employment Period after receiving such direction unless and until such time that he is notified by the Board or the Chief Executive Officer that he shall no longer serve as the Chief Accounting Officer as of a specified effective date, such as, for example and without limitation, the Company’s decision to hire another employee to serve as its Chief Accounting Officer.  Executive hereby understands, confirms and agrees that for all, or any part of, the Employment Period, Executive may also assume the role and duties as the Company’s Chief Accounting Officer as a part of his duties as the Company’s Chief Financial Officer if he is so directed hereunder.  During the Employment Period, Executive shall also serve in the same positions of employment with AMR as he does with the Company for no additional compensation. Executive’s principal place of employment shall be at the main business offices of the Company in Houston, Texas. Defined terms used in the Agreement that are not otherwise defined herein when first used are defined in Sections 6(d) and 10(d).

2.Compensation.

(a)Base Salary. The Company shall pay to Executive during the Employment Period a base salary of Four Hundred Fifty Thousand dollars ($450,000) per year, as adjusted pursuant to the subsequent provisions of this paragraph (the “Base Salary”). The Base Salary shall be payable in accordance with the Company’s normal payroll schedule and procedures for its executives. Nothing contained herein shall preclude the payment of any other compensation to Executive at any time as determined by the Board.
(b)Annual Bonus.

(1)In addition to the Base Salary in Section 2(a), for each annual fiscal year of the Company during the Employment Period (each such annual period being referred to as a “Bonus Period”), Executive will be eligible to participate in an annual bonus program established by the Board, under which Executive shall receive a bonus equal to a percentage of Executive’s Base Salary paid during each such one-year period (referred to herein as the “Annual Bonus”), such percentage to be established by the Board in its sole discretion; provided, however, that the payment of any Annual Bonus will be subject to the Board’s discretion and made only if Executive has met the pre-established performance criteria set by the Board for the Bonus Period.

(2)In the event that the Employment Period ends before the end of the Bonus Period, Executive shall be entitled to a pro rata portion of the Annual Bonus for that year (based on the number of days in which Executive was employed during the year divided by 365), as determined based on satisfaction of the performance criteria for that Bonus Period on a pro rata basis (calculated as if the final day of the Employment Period were the final day of the applicable 

Bonus Period), unless Executive was terminated for Cause or terminated voluntarily without Good Reason, in any of which events Executive shall not be entitled to any Annual Bonus for that year.

(3)If Executive successfully meets the performance criteria for a Bonus Period, the Company shall pay Executive the Annual Bonus amount determined by the Board within the earlier of: (A) sixty days (60) days after the end of the Bonus Period or (B) sixty days (60) after the end of the Employment Period.

(c)Compensation in Event of Injury or Sickness. In the event that Executive becomes injured or suffers a medically determinable physical or mental illness, as determined by a physician acceptable to both the Company and Executive in the same manner as provided in the definition of Disability in Section 6(d), during the Employment Period, Executive shall be entitled to receive continued Base Salary (as set forth in Section 2(a)) for a period of six (6) months following the occurrence of such injury or sickness; provided, however, such Base Salary shall be reduced by any short-term and/or long-term disability income benefits that are received by Executive under such programs sponsored by the Company (or an Affiliate) during such 6-month period.

3.Duties and Responsibilities of Executive. During the Employment Period, Executive shall devote his full working time to (a) the business of the Company and its Affiliates and (b) performance of the duties and responsibilities assigned to Executive to the best of Executive’s ability and with reasonable diligence. In determining Executive’s duties and responsibilities, Executive shall not be assigned duties and responsibilities that are materially inconsistent with Executive’s position or positions. This Section 3 shall not be construed as preventing Executive from (a) engaging in reasonable volunteer services for charitable, educational or civic organizations, or (b) investing personal assets in such a manner that will not require a material amount of the Executive’s time or services in the operation of the businesses in which such investments are made; provided, however, no such other activity shall conflict or materially interfere with Executive’s loyalties, duties or responsibilities to the Company and its Affiliates. Executive shall at all times use his best efforts to comply in good faith with United States laws applicable to Executive’s actions on behalf of the Company and its Affiliates. Executive understands and agrees that Executive may be required to travel from time to time for purposes of the Company’s business. The Parties agree that Executive’s principal work location cannot be relocated further than 50 miles from Executive’s principal work location on the Effective Date, except as mutually agreed by the Parties.

4.Term of Employment. Executive’s term of employment with the Company under this Agreement shall be for the period from the Effective Date through the date that is two (2) years from the Effective Date, unless earlier terminated in accordance with this Agreement, and if not earlier terminated, this Agreement will expire upon the date that is two (2) years from the Effective Date.

The period from the Effective Date through the earlier of the second (2nd) anniversary of the Effective Date and the date of Executive’s termination of employment with the Company and its Affiliates for whatever reason (the “Termination Date”) shall be referred to herein as the “Employment Period.” Notwithstanding the above, Executive agrees to remain available for six months beyond the Employment Period during normal business hours to provide reasonable assistance to the Company or its Affiliate in the event that the Company or an Affiliate become involved in litigation (or another type of dispute or controversy) regarding matters of which Executive has relevant knowledge resulting from Executive’s employment with the Company or an Affiliate; provided that such assistance does not unreasonably interfere with the employment duties of Executive with another employer following the Termination Date. Such post-termination assistance shall be provided by Executive in the capacity of an independent contractor at an agreed-upon, reasonable consulting fee, and shall not be deemed to create or continue an employee-employer or fiduciary relationship, or to represent a continuation of this Agreement.
5.Benefits. Subject to the terms and conditions of this Agreement, during the Employment Period, Executive shall be entitled to all of the following:

(a)Reimbursement of Business Expenses. The Company shall pay or reimburse Executive for all reasonable travel, entertainment and other business expenses paid or incurred by Executive in the performance of duties hereunder. The Company shall also provide Executive with suitable office space, including staff support, paid parking, and necessary equipment, including but not limited to, cellular telephone and laptop computer.

(b)Other Employee Benefits. Executive shall be entitled to participate in any pension, retirement, 401(k), profit-sharing, and other employee benefits plans or programs of the Company to the same extent as available to other senior management employees of the Company under the terms of such plans or programs. Executive shall also be entitled to participate in any group insurance, hospitalization, medical, dental, health, life, accident, disability and other employee benefits plans or programs of the Company to the extent available to other senior management employees of the Company, and their spouses and eligible dependents, under the terms of such plans or programs including any medical expense reimbursement account and post-retirement medical program as made available to other senior management employees of the Company.

(c)Vacation and Holidays. Executive shall be entitled to five (5) weeks of paid vacation per calendar year (prorated in any calendar year during which Executive is employed for less than the entire year based on the number of days in such calendar year in which Executive was employed). Executive shall also be entitled to all paid holidays and personal days provided by the Company for its key management employees under the Company’s personnel policy as then effective. Unused vacation shall not carry over to the following year unless specifically approved by the Company.

(d)Equity Incentive Awards. Executive shall be eligible to participate in the Alta Mesa Resources, Inc. 2018 Long Term Incentive Plan (the “LTIP”) or any other incentive plan sponsored by the Company which provides for equity grants of incentive awards. The terms and conditions of any equity incentive award granted to Executive shall be set forth in the incentive plan document and award agreement governing such award.

(e)Annual Physical.  Executive shall be entitled to be reimbursed by the Company for the full cost of an annual physical examination by a physician (1) selected by the Company or (2) selected by Executive and approved by the Company.

(f)Key Man or Company-Owned Life Insurance. The Company may, at any time during the term of this Agreement, apply for and procure as owner, and for its sole benefit, life insurance on the Executive’s life in such amounts and in such forms as the Company may select. Executive hereby acknowledges that he will have no interest whatsoever in any such insurance policy. Executive shall submit to such medical examinations, supply such information, and execute such documents as may be reasonably requested by the insurer to obtain any such key man policy.

(g)Tax Planning, Preparation and Advice. Executive shall be entitled to be reimbursed by the Company for the cost of tax preparation and planning by a certified financial planner or certified public accountant (1) selected by the Company or (2) selected by Executive and approved by the Company, provided that such annual reimbursement shall not exceed $5,000.00.

6.Rights and Payments upon Termination. The Executive’s right to compensation and benefits for periods after the Termination Date shall be determined in accordance with this Section 6.  Except as otherwise expressly required by law or as specifically provided in an employee benefit plan or this Agreement, all of Executive’s rights to salary, severance, benefits, bonuses and other compensatory amounts under this Agreement shall cease upon the Termination Date.

(a)Minimum Payments and Vesting. Executive shall be entitled to the following minimum payments under this Section 6(a), in addition to any other payments or benefits which Executive is entitled to receive under the terms of any employee benefit plan or program or Section 6(b):

		
	(1)
	unpaid salary for the full calendar month in which the Termination Date occurs; provided, however, if Executive is terminated for Cause or terminates his employment voluntarily without Good Reason, Executive shall only be entitled to receive accrued but unpaid salary through the Termination Date;

		
	(2)
	unpaid vacation days for that year which have accrued through the Termination Date;

		
	(3)
	reimbursement of reasonable business expenses that were incurred but unpaid as of the Termination Date; and

		
	(4)
	to the extent Executive participated in any nonqualified deferred compensation plan or program with vesting criteria, or received any equity incentive grant that is not fully vested, as of the Termination Date, Executive will automatically vest as of the Termination Date as follows:

(A)subject to Section 6(c), if Executive is involuntarily terminated by the Company other than for Cause (and not including death or termination due to Disability), or if the Executive terminates his employment for Good Reason, Executive shall become immediately 100% vested in (i) any outstanding awards of restricted stock, stock options and any other equity incentive awards granted under the LTIP (or any other equity incentive plan of the Company or AMR) that vest solely based on the passage of time (with any such awards that vest based on the attainment of performance-based vesting conditions vesting at the target level); and (ii) any nonqualified deferred compensation account balance or benefit; and

(B)if Executive is terminated by the Company for Cause, or voluntarily terminates his employment without Good Reason, all unvested equity incentive awards shall be treated in accordance with the terms of the outstanding award agreement or plan document, as applicable. 

Salary and accrued vacation days under this Section 6(a) shall be paid to Executive within five (5) business days following the Termination Date in a cash lump sum payment, less applicable withholdings. Business expenses shall be reimbursed in accordance with the Company’s normal procedures.
(b)Other Severance Payments. In the event that during the Employment Period (i) Executive’s employment is involuntarily terminated by the Company (except due to a No Severance Benefits Event), (ii) Executive’s employment is terminated due to death or Disability, or (iii) Executive terminates his employment for Good Reason; then in any such event under clause (i), (ii), or (iii), subject to Section 6(c), the following severance benefits shall be provided to Executive or, in the event of his death before receiving all such benefits, to Executive’s Designated Beneficiary following his death:

(1)Additional Payment. The Company shall pay additional compensation as described in this Section 6(b)(1) (the “Additional Payment”). Subject to Section  6(c), the Company shall make the Additional Payment to Executive in a cash lump sum, net of applicable withholdings.

(A)Termination Not Following Change in Control. If the Termination Date does not occur within the 15-month period immediately following a Change in Control, the Additional Payment shall be (i) an amount equal to one hundred fifty percent (150%) of Executive’s Base Salary in effect as of the Termination Date, (ii) an amount equal to one hundred fifty percent (150%) of the greater of (x) 100% of the “target” bonus for Executive for the year containing the Termination Date or (y) the amount of the Annual Bonus paid to the Executive for the year immediately preceding the year containing the Termination Date, and (iii) an additional $24,000.00 lump sum cash payment for outplacement services. In such event, the Additional Payments described in Section 6(b)(1)(C) following a Change in Control shall be inapplicable for Executive. 

(B)Anticipatory Termination. If the Executive incurs an Anticipatory Termination, he shall be entitled to receive, in addition to the payment described in Section 6(b)(1)(A) above, an additional amount equal to the sum of (i) fifty percent (50%) of Executive’s Base Salary as in effect as of the Termination Date, plus (ii) fifty percent (50%) times the greater of (x) 100% of the “target” bonus for Executive for the year containing the Termination Date or (y) the amount of the Annual Bonus paid to the Executive for the year immediately preceding the year containing the Termination Date (the “Anticipatory Termination Payment”). In such event, the Additional Payments described in Section 6(b)(1)(C) following a Change in Control shall be inapplicable for Executive. The Anticipatory Termination Payment shall be subject to the Executive executing a second release agreement, as described in Section 6(c), but covering only the period from the Termination Date until the date immediately following the Change in Control.

(C)Termination Following Change in Control. If the Termination Date occurs within the fifteen (15) month period immediately following a Change in Control, the Additional Payment shall be (i) an amount equal to two hundred percent (200%) of Executive’s Base Salary in effect as of the Termination Date, (ii) an amount equal to two hundred percent (200%) times the greater of (x) 100% of the “target” bonus for Executive for the  year containing the Termination Date or (y) the amount of the Annual Bonus paid to the Executive for the year immediately preceding the year containing the Termination Date, and (iii) an additional $24,000.00 lump sum cash payment for outplacement services. In such event, the Additional Payments described in Sections 6(b)(1)(A) and 6(b)(1)(B) above shall be inapplicable for Executive.

(2)COBRA Coverage.

(A)In the event that Executive timely elects continuation coverage under any of the Company’s “group health plans” within the meaning of Treasury Regulations Section 54.4980B-2 Q/A-1 (collectively, the “Health Plan”) on behalf of himself and any of his eligible covered dependents (including his spouse) pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), following the Termination Date, the Company shall pay directly or reimburse Executive for an amount equal to the monthly premium for such COBRA coverage for each month during which such COBRA coverage is in effect during the period commencing on the Termination Date and ending upon the earliest of (x) the date that is eighteen (18) months following the Termination Date, (y) the date that Executive and Executive’s covered dependents become no longer eligible for COBRA coverage or (z) the date Executive becomes eligible to receive group healthcare coverage from a subsequent employer (and Executive agrees to promptly notify the Company of such eligibility). In all other respects, Executive and his dependents shall be treated the same as any other qualified beneficiaries under the Health Plan and COBRA.

(B)If Executive’s eligibility for continued COBRA coverage under the Health Plan ends due to expiration of the “maximum coverage period” under and within the meaning of 26 C.F.R. 54.4980B-7 Q/A-4(b), Executive shall be entitled to continue coverage for himself and his eligible covered dependents (including his spouse), if any, under the Health Plan (Executive and each such covered dependent being referred to herein as a “Qualified Beneficiary”) for the period beginning on the first day following such expiration of eligibility for COBRA coverage and ending on the second anniversary of the Termination Date or  the earlier date that Executive becomes eligible to receive group healthcare coverage from a subsequent employer (and Executive agrees to promptly notify the Company of such eligibility) (the “Extended Coverage”), subject to the Company or an Affiliate continuing to sponsor a Health Plan for the benefit of the Company’s employees generally. In order for Executive to be eligible to receive the Extended Coverage on behalf of himself and any other Qualified Beneficiaries, Executive and any other Qualified Beneficiary must first exhaust such individual’s rights to any COBRA coverage available under the Health Plan. The Parties acknowledge that following expiration of the Extended Coverage, neither Executive nor any other Qualified Beneficiary will have any right to elect coverage under the Health Plan.  Executive shall, on a monthly after-tax basis, pay to the Company (or its delegate) the COBRA rate, as then effective, for each month during the period of Extended Coverage.  For purposes of Code Section 409A, the benefits provided under this Section 6(b)(2)(B) shall be provided as separate monthly in-kind payments of those benefits, and to the extent those benefits are subject to and not otherwise excepted from Section 409A, the provision of in-kind benefits during one calendar year shall not affect in-kind benefits to be provided in any other calendar year.

(C)Executive and Executive’s spouse, if applicable, consent and agree to acquire and maintain any and all coverage that either or both of them are entitled to at any time during their lives under the Medicare program or any similar program of the United States or any agency thereof. Executive and Executive’s spouse further agree to pay any required premiums for Medicare coverage from their personal funds.  

(D)Notwithstanding Section 6(b)(2)(A) or (B) to the contrary, the Company may alter the manner in which health benefits are provided to Executive under such sections following termination of Executive’s employment to the extent the Company reasonably determines is necessary for purposes of satisfying Code Section 105(h)(2) or avoiding the imposition of an excise tax on the Company or any of its Affiliates, provided that such alterations do not materially decrease coverage or increase the after-tax cost to Executive of such benefits.

(3)Code Section 280G Tax Gross-up. If the Termination Date occurs within two (2) years after the Effective Date, the Accounting Firm shall determine if any of the payments or benefits received or to be received by Executive (including, without limitation, any payment or benefits received in connection with a Change in Control or Executive’s termination of employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement), constitute “parachute payments” within the meaning of Code Section 280G as a result of a “change in ownership or control,” under and within the meaning of Treasury Regulation Section 1.280G-1, of AMR or any of its subsidiaries, including the Company (all such payments and benefits collectively referred to herein as the “280G Payments”) that are subject to the excise tax imposed under Code Section 4999 (the “Excise Tax”). If the Accounting Firm determines any of the 280G Payments are subject to the Excise Tax, the Company shall pay to Executive, as soon as reasonably practicable following such determination but in any event no later than the end of the year following the year in which the Executive pays the relevant taxes, an additional amount equal to the sum of the Excise Tax payable by Executive plus the amount that the Accounting Firm determines is necessary to put Executive in the same after-tax position (taking into account all applicable federal, state and local excise, income and other taxes) as if no Excise Tax had been imposed.

All determinations required to be made under this Section 6(b)(3), including whether a payment would result in an “excess parachute payment” within the meaning of Code Section 280G and the assumptions utilized in arriving at such determination, shall be made by the Accounting Firm. All fees and expenses of the Accounting Firm shall be paid solely by the Company. The final determination by the Accounting Firm shall be binding on the Parties absent manifest error.
Executive agrees to reasonably cooperate with the Company to minimize the amount of any excess parachute payments, including, without limitation, assisting the Company in establishing that some or all of the payments received by Executive which are “contingent on a change”, as described in Code Section 280G(b)(2)(A), are reasonable compensation for personal services actually rendered by Executive before the date of such change or to be rendered by Executive on or after the date of such change. Notwithstanding the foregoing, Executive shall not be required to take any action which his attorney or tax advisor advises him in writing exposes the Executive to material personal liability.

(4)Other Termination of Employment. For purposes of clarity, in the event that (i) Executive voluntarily resigns or otherwise voluntarily terminates employment, except due to death, Disability or for Good Reason, or (ii) Executive’s employment is terminated due to a No Severance Benefits Event then, in any such event under clause (i) or (ii), the Company shall have no obligation to provide the severance benefits described in paragraphs (1), (2) and (3) (above) of this Section 6(b), except to offer COBRA coverage (as required by COBRA law) but not at the rate described in paragraph (2). However, Executive shall still be entitled to the minimum benefits provided under Section 6(a).

(5)No Duplication of Severance Benefits. The severance payments provided under Section 6(b) shall supersede and replace any severance payments under any severance pay plan or similar agreement that the Company or any Affiliate maintains for key management employees or employees generally.

(c)Release Agreement. Notwithstanding any provision of the Agreement to the contrary, in order to receive the vesting acceleration provided under Section 6(a)(4)(A) or the severance benefits provided under Section 6(b)(1), (2), or (3), the Executive must first execute an appropriate release agreement (on a form provided by the Company) whereby the Executive agrees to release and waive, in return for such vesting acceleration or severance benefits, any claims that Executive may have against the Company or any of its Affiliates including, without limitation, for unlawful discrimination (e.g., Title VII of the Civil Rights Act); provided, however, such release agreement shall not release any claim or cause of action by or on behalf of the Executive for (a) any payment or benefit that may be due or payable under this Agreement or any vested benefits under any employee benefit plan or program or (b) non-payment of salary or benefits to which Executive is entitled from the Company as of the Termination Date. The release agreement must be provided to Executive within five (5) days following the Termination Date, and signed by Executive and returned to the Company, and any applicable revocation period must have expired, no later than sixty (60) days following the Termination Date; provided, however, the second release agreement required for an Anticipatory Termination Payment under Section 6(b)(1)(B) must be provided to Executive within five (5) days following the Change in Control Date, and signed by Executive and returned to the Company, and any applicable revocation period must have expired, no later than sixty (60) days following the Change in Control Date. Any payments to which Executive becomes entitled pursuant to Section 6(b)(1), shall be paid within ten (10) days after the executed release agreement (or executed second release agreement with respect to an Anticipatory Termination Payment) has been timely returned to the Company for counter-signature and become effective and non-revocable by Executive under the terms of the release agreement. Notwithstanding anything in this Agreement to the contrary, to the extent that any severance payments or benefits provided under Section 6(a)(4)(A) or Section 6(b) are deferred compensation under Code Section 409A, and are not otherwise exempt from the application of Section 409A, then, if the period during which Executive may consider and sign the release agreement spans two calendar years, the severance payments or benefits will not be made or begin until the later calendar year.

(d)Definitions.

(1)“Accounting Firm” means any nationally recognized, certified public accounting firm selected by the Company and reasonably acceptable to the Executive; provided, however, the firm selected must be within the top 20 in the United States at such time based on annual revenues for certified public accounting firms in the immediately preceding year.

(2)“Affiliate” means any parent or subsidiary entity of the Company, or any other entity in whatever form, of which the Company has any direct or indirect controlling ownership interest or management control, or vice-versa, as determined by the Company. For purposes of clarity and not limitation, (i) Riverstone Investment Group LLC, Bayou City Energy Management, LLC, HPS Investment Partners, LLC, or High Mesa Inc., and their affiliates (other than AMR or any of its subsidiaries, to the extent considered an affiliate of any such entity) are not Affiliates for purposes of this Agreement, and (ii) AMR is an Affiliate of the Company.
(3)“AMR” means Alta Mesa Resources, Inc., a Delaware corporation (formerly known as Silver Run Acquisition Corporation II) or its successor in interest.

(4)“Anticipatory Termination” means a termination of the Executive’s employment within the three (3) month period ending immediately prior to the Change in Control Date (in which the Change in Control is a “change in control event” within the meaning of Code Section 409A), but only if (a) the Executive’s employment with the Company was (i) terminated by the Company without Cause or (ii) terminated by the Executive for Good Reason, and (b) it is reasonably demonstrated by the Executive that such termination of employment (1) was at the request of a third party who has taken steps reasonably calculated to effect such Change in Control or (2) otherwise arose in connection with or anticipation of such Change in Control. 

(5)“Board” means the then-current Board of Directors of AMR, including the Compensation Committee (the “Compensation Committee”) or another authorized committee thereof.

(6)“Cause” means any of the following: (A) the Executive’s final conviction by a court of competent jurisdiction of a felony involving moral turpitude, or entering the plea of nolo contendere to such felony by the Executive; (B) the commission by the Executive of a demonstrable act of material fraud, or a proven and material misappropriation of funds or other property, of or upon the Company or any Affiliate; (C) the engagement by the Executive, without the written approval of the Company, in any material activity which directly competes with the business of the Company or any Affiliate, or which would directly result in a material injury to the business or reputation of the Company or any Affiliate; or (D) the breach by Executive of any material provision of this Agreement.  With respect to items (C) and (D) above, in order to constitute “Cause” hereunder, Executive must also fail to cure such breach within a reasonable time period set by the Company but in no event less than twenty (20) calendar days after Executive’s receipt of such notice.
(7)“Change in Control” means and includes each of the following:

(A)A transaction or series of transactions (other than an offering of Common Stock to the general public through a registration statement filed with the Securities and Exchange Commission or a transaction or series of transactions that meets the requirements of clauses (1) and (2) of subsection (C) below) whereby any “person” or related “group” of “persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act) (other than AMR, any of its subsidiaries, an employee benefit plan maintained by AMR or any of its subsidiaries or a “person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, AMR) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of AMR possessing more than 50% of the total combined voting power of AMR’s securities outstanding immediately after such acquisition; or

(B)During any period of two consecutive years, individuals who, at the beginning of such period, constitute the Board together with any new Director(s) (other than a Director designated by a person who shall have entered into an agreement with AMR to effect a transaction described in subsections (A) or (C)) whose election by the Board or nomination for election by AMR’s stockholders was approved by a vote of at least two-thirds of the Directors then still in office who either were Directors at the beginning of such two-year period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or

(C)The consummation by AMR (whether directly involving AMR or indirectly involving AMR through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of AMR’s assets in any single transaction or series of related transactions, or (z) the acquisition of assets or stock of another entity, in each case other than a transaction:

(1)which results in AMR’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of AMR or the person that, as a result of the transaction, controls, directly or indirectly, AMR or owns, directly or indirectly, all or substantially all of AMR’s assets or otherwise succeeds to the business of AMR (AMR or such person, the “Successor Entity”)) directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the transaction; and
(2)after which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this clause (2) as beneficially owning 50% or more of the combined voting power of the Successor Entity solely as a result of the voting power held in AMR prior to the consummation of the transaction.

Notwithstanding the foregoing, in no event shall the following constitute a Change in Control: (i) the Transaction or any transactions occurring in connection therewith or (ii) any initial public offering of any subsidiary of AMR that owns all or part of AMR’s Midstream Assets (as defined in Section 10(d)(1)) or any other sale or disposition of such Midstream Assets directly or indirectly by AMR in connection with such initial public offering.
If a Change in Control constitutes a payment event with respect to any amount, benefit or award (or portion of any amount, benefit or award) that provides for the deferral of compensation that is subject to Section 409A, to the extent required to avoid the imposition of additional taxes under Section 409A, the transaction or event described in subsection (A), (B) or (C) above with respect to such amount, benefit or award (or portion thereof) shall only constitute a Change in Control for purposes of the payment timing of such amount, benefit or award if such transaction also constitutes a “change in control event,” as defined in Treasury Regulation Section 1.409A- 3(i)(5).

The Board as in effect immediately prior to the occurrence of a Change in Control shall have full and final authority, which shall be exercised in its discretion, to determine conclusively whether a Change in Control has occurred pursuant to the above definition, the date of the occurrence of such Change in Control and any incidental matters relating thereto; provided that any exercise of such authority in conjunction with a determination regarding whether a Change in Control is a “change in control event” (as defined in Treasury Regulation Section 1.409A-3(i)(5)) shall be determined on a basis consistent with such regulation.
(8) “Change in Control Date” means the effective date of the occurrence of a Change in Control.

(9)“Code” means the Internal Revenue Code of 1986, as amended or its successor. References herein to any Section of the Code shall include any successor provisions of the Code.

(10)“Common Stock” means the Class A common stock of AMR, $0.0001 par value per share, and any class of common stock into which such common shares may hereafter be converted, reclassified or recapitalized.

(11)“Designated Beneficiary” means the Executive’s surviving spouse, if any. If there is no such surviving spouse at the time of Executive’s death, then the Designated Beneficiary hereunder shall be Executive’s estate after the legal representative of such estate provides satisfactory evidence thereof to the Company (or its delegate).

(12)“Director” means a Board member.

(13)“Disability” shall mean that (a) Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or last for a continuous period of not less than 12 months, or (b) by reason of any medically determinable physical or mental impairment which can be expected to result in death or to last for a continuous period of not less than 12 months, Executive is receiving income replacement for a period of not less than three months under an accident and health plan covering employees of the Company. Evidence of such Disability shall be certified by a physician acceptable to both the Company and Executive. In the event that the Parties are not able to agree on the choice of a physician, each shall select one physician who, in turn, shall select a third physician to render such certification. All reasonable costs directly relating to the determination of whether Executive has incurred a Disability for purposes of this Agreement shall be paid by the Company. Executive agrees to submit to any examinations that are reasonably required by the attending physician or other healthcare service providers to determine whether Executive has a Disability.

(14)“Dispute” means any dispute, disagreement, claim, or controversy arising from, in connection with, or relating to (a) the employment, or termination of employment, of Executive, or (b) the Agreement, or the validity, interpretation, performance, breach or termination of the Agreement.

(15)“Exchange Act” means the Securities Exchange Act of 1934, as amended.

(16)“Good Reason” means the occurrence of any of the following without the Executive’s prior written consent, if not cured and corrected by the Company or ARM, or either of their successor(s), within 60 days after written notice thereof is provided by Executive to the Company or its successor, provided such notice is delivered within 90 days after the occurrence of the applicable condition or event and that Executive resigns from employment with the Company within 90 days following expiration of such 60-day cure period: (a) except as provided below in this definition, the demotion or reduction in title or rank of Executive with the Company or AMR, or the assignment to Executive of duties that are materially inconsistent with Executive’s positions, duties and responsibilities with the Company or AMR, or any removal of the Executive from, or any failure to nominate for re-election the Executive to, any of such positions (other than a change due to the Executive’s Disability or as an accommodation under the American with Disabilities Act), except for any such demotion, reduction, assignment, removal or failure that occurs in connection with Executive’s termination of employment for Cause, Disability or death; (b) the reduction of the Executive’s annual base salary and/or target bonus opportunity, as compared to his aggregate base salary and target bonus opportunity as effective immediately prior to such reduction, if such reduction of base salary and/or target bonus opportunity, on an aggregated basis, is five percent (5%) or greater of the aggregate base salary and target bonus opportunity as effective immediately prior to such reduction; or (c) a relocation of Executive’s principal work location to a location in excess of 50 miles from its then current location.  Notwithstanding any provision of this definition or any other provision of this Agreement to the contrary, the Parties hereby consent, confirm and agree that any removal or resignation of Executive from the position or duties as the Chief Accounting Officer of the Company (as provided in Section 1) at any time, or for any reason, during the Employment Period, shall not be, and shall not be construed as any part of, a Good Reason event (as defined above) under this Agreement or otherwise relating to this Agreement or to Executive’s employment hereunder.

(17)“No Severance Benefits Event” means termination of Executive’s employment by the Company for Cause.

7.Notice of Termination. Any termination of Executive’s employment by the Company or the Executive other than for death shall be communicated by Notice of Termination to the other Party hereto. For purposes of this Agreement, the term “Notice of Termination” means a written notice which indicates the specific termination provision of this Agreement relied upon, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated and specifies a Termination Date which, if submitted by Executive, shall be at least thirty (30) days following the date of such Notice of Termination unless such termination is for Good Reason (in which case the requirements for a termination due to Good Reason shall apply); provided, however, that in the event that Executive delivers a Notice of Termination to the Company, the Company may, in its sole discretion, change the Date of Termination to any date that occurs following the date of receipt of such Notice of Termination and is prior to the date specified in such Notice of Termination.  A Notice of Termination submitted by the Company may provide for a Termination Date on the date Executive receives the Notice of Termination, or any date thereafter elected by the Company in its sole discretion.  The failure by the Company or Executive to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Cause or Good Reason shall not waive any right of such Party hereunder or preclude such Party from asserting such fact or circumstance in enforcing such Party’s rights hereunder.

8.No Mitigation. Except as provided in Section 6(b)(2) for continued Health Plan coverage or Section 6(b)(3) regarding excess parachute payments, Executive shall not be required to mitigate the amount of any payment or other benefits provided under this Agreement by seeking other employment or in any other manner.

9.Restrictive Covenants. As an inducement to the Company to enter into this Agreement, Executive represents to, and covenants with or in favor of, the Company that Executive will comply with all of the restrictive covenants in Sections 9 through 17, as a condition to the Company’s obligation to provide any benefits to Executive under this Agreement.

10.Trade Secrets.

(a)Access to Trade Secrets. As of the Effective Date and on an ongoing basis, the Company agrees to give Executive access to Trade Secrets which the Executive did not have access to, or knowledge of, before Executive’s commencement of employment with the Company.

(b)Agreement Not to Use or Disclose Trade Secrets. In exchange for the Company’s promises to provide Executive with access to Trade Secrets, and the other consideration and benefits provided to Executive under this Agreement, Executive agrees, during the Employment Period, and any time thereafter, not to disclose to anyone, including, without limitation, any person, firm, corporation or other entity, or publish or use for any purpose, any Trade Secrets, except (1) as required in the ordinary course of the business of the Company or an Affiliate or (2) as authorized by the Company or Affiliate, as applicable. Executive acknowledges that Trade Secrets (A) have been and will be developed or acquired by the Company (or an Affiliate) through the expenditure of substantial time, effort and money and (B) provide the Company (or an Affiliate) with an advantage over competitors who do not know or use Trade Secrets.

Executive shall hold in a fiduciary capacity for the benefit of the Company (or its Affiliate, as applicable) any Trade Secret relating to the Company or any of its Affiliates, and their respective businesses, which (a) has been obtained by Executive during his employment by the Company (or any Affiliate) and (b) is not public knowledge other than via an unauthorized disclosure made by Executive in violation of this Agreement. Executive acknowledges and agrees that all Trade Secrets are, and will continue to be, the exclusive property of the Company or Affiliate, as applicable.
Executive shall not at any time disclose to any person or entity, or publish, or use for any unauthorized purpose, any Trade Secret, except as the Company directs or under compulsion of law. Executive agrees to give notice to the Company of any attempt to compel disclosure of any Trade Secret within five (5) business days after Executive is informed that such disclosure is being, or will be, compelled. Any such notice shall contain a copy of the subpoena, order or other process used to compel disclosure.
The agreements and covenants in this Section 10(b) apply to all Trade Secrets, whether now known or later to become known to Executive. In addition, these provisions shall be in addition to, and not limit or restrict in any way, any other confidentiality agreement or covenant between the Executive and the Company or any of its Affiliates.

(c)Agreement to Refrain from Defamatory Statements. Executive shall refrain, both during the Employment Period and thereafter, from publishing any oral or written statements about any directors, partners, officers, employees, agents, investors or representatives of the Company or any Affiliate that are (1) slanderous, libelous, or defamatory; (2) disclose private or confidential information about the business affairs, directors, partners, officers, employees, agents, investors or representatives of the Company or any Affiliate; (3) constitute an intrusion into the seclusion or private lives of any such person; (4) give rise to unreasonable publicity about the private life of any such person; (5) place any such person in a false light before the public; or (6) constitute a misappropriation of the name or likeness of any such person. A violation or threatened violation of these restrictive covenants may be enjoined by a court of law notwithstanding the arbitration provisions of Section 31.

The Company and its Affiliates shall refrain, both during the Employment Period and thereafter, from publishing any oral or written statements about Executive that are (1) slanderous, libelous, or defamatory; (2) disclose private or confidential information about Executive; (3) constitute an intrusion into the seclusion or private life of Executive; (4) give rise to unreasonable publicity about the private life of Executive; (5) place Executive in a false light before the public; or (6) constitute a misappropriation of the name or likeness of Executive.  A violation or threatened violation of these restrictive covenants may be enjoined by a court of law notwithstanding the arbitration provisions of Section 31.
(d)Definitions. The following terms, when used in this Agreement, are defined below:

(1)“Restricted Territory” means the counties of Kingfisher, Garfield, Blaine and Major county in Oklahoma as well as any county, or equivalent political or governmental subdivision, of any state, district, or territory of North America in which the Company or any of its Affiliates (i) owns at least 25% of its assets or (ii) derives at least 25% of its revenues from operations ; and any area adjacent to such counties, or equivalent political or governmental subdivision, to the extent such adjacent areas are within a 50-mile radius of any (x) producing property or leasehold of the Company or any of its Affiliates or (y) assets relating to the gathering, processing, storage, treating or transmission of oil or natural gas or otherwise generally considered “midstream” in nature in accordance with generally accepted U.S. oil and gas industry practices and customs (“Midstream Assets”) of the Company or any of its Affiliates. 

(2)“Trade Secrets” means any and all information and materials (in any form or medium) that are proprietary to the Company or an Affiliate, or are treated as confidential by the Company or an Affiliate as part of, or relating to, any portion of its or their businesses (whether or not owned or developed by the Company or an Affiliate) and that are not generally known by other persons or entities in the same type of business.

For purposes of the Agreement, Trade Secrets include, without limitation, the following: all of the Company’s or Affiliate’s research, technical and business information, whether patentable or not, which is of a confidential, trade secret or proprietary character, and which is either developed by the Executive alone, or with others or by others; all non-public information that the Company or an Affiliate has marked as confidential or has otherwise described to Executive (either in writing or orally) as confidential; all non-public information concerning the Company’s or Affiliate’s products, services, prospective products or services, research, prospects, leases, surveys, seismic data, drilling data, designs, prices, costs, marketing plans, marketing techniques, studies, test data, leasehold and royalty owners, investors, suppliers and contracts; all business records and plans; all personnel files; all financial information of or concerning the Company or an Affiliate; all information relating to the Company’s operating system software, application software, software and system methodology, hardware platforms, technical information, inventions, computer programs and listings, source codes, object codes, copyrights and other intellectual property; all technical specifications; any proprietary information belonging to the Company or an Affiliate; all computer hardware or software manuals of the Company or an Affiliate; all Company or Affiliate training or instruction manuals; all Company or Affiliate electronic data; and all computer system passwords and user codes.
11.Duty to Return Company Documents and Property. Upon the Termination Date, Executive shall immediately return and deliver to the Company any and all papers, books, records, documents, memoranda and manuals, e-mail, electronic or magnetic recordings or data, including all copies thereof, belonging to the Company or relating to its business, in Executive’s possession, whether prepared by Executive or others. If at any time after the Termination Date, Executive determines that Executive has any Trade Secrets in Executive’s possession or control, Executive shall immediately return them to the Company, including all copies thereof.

12.Best Efforts and Disclosure. Executive agrees that, while employed with the Company under this Agreement, Executive’s services shall be devoted on a full time basis to the Company’s business, and Executive shall use best efforts to promote its success. Further, Executive shall promptly disclose to the Company all ideas, inventions, computer programs, and discoveries, whether or not patentable or copyrightable, which Executive may conceive or make, alone or with others, during 

Executive’s period of employment with the Company or its Affiliates, whether or not during working hours, and which directly or indirectly:
		
	(a)
	relate to a matter within the scope, field, duties or responsibility of Executive’s employment with the Company or within the scope or field of the Company’s or an Affiliate’s business; or

		
	(b)
	are based on any knowledge of the actual or anticipated business or interests of the Company; or

		
	(c)
	are aided by the use of time, materials, facilities or information of the Company or an Affiliate.

Executive assigns to the Company, without further compensation, any and all rights, titles and interest in all such ideas, inventions, computer programs and discoveries in all countries of the world. Executive recognizes that all ideas inventions, computer programs and discoveries of the type described above, conceived or made by Executive alone or with others within 12 months after the Termination Date (voluntary or otherwise), are likely to have been conceived in significant part either while employed by the Company or as a direct result of knowledge Executive had of proprietary information or Trade Secrets. Accordingly, Executive agrees that such ideas, inventions or discoveries shall be presumed to have been conceived during Executive’s period of employment with the Company or its Affiliates, unless and until the contrary is clearly established by the Executive.
13.Inventions and Other Works. Any and all writings, computer software, inventions, improvements, processes, procedures and/or techniques which Executive may make, conceive, discover, or develop, either solely or jointly with any other person or persons, at any time during Executive’s period of employment with the Company or its Affiliates, whether at the request or upon the suggestion of the Company or otherwise, which relate to or are useful in connection with any business now or hereafter carried on or contemplated by the Company, including developments or expansions of its present fields of operations, shall be the sole and exclusive property of the Company. Executive agrees to take any and all actions necessary or appropriate so that the Company can prepare and present applications for copyright or letters patent therefor, and secure such copyright or letters patent wherever possible, as well as reissue renewals, and extensions thereof, and obtain the record title to such copyright or patents. Executive shall not be entitled to any additional or special compensation or reimbursement regarding any such writings, computer software, inventions, improvements, processes, procedures and techniques. Executive acknowledges that the Company from time to time may have agreements with other persons or entities which impose obligations or restrictions on the Company regarding inventions made during the course of work thereunder or regarding the confidential nature of such work. Executive agrees to be bound by all such obligations and restrictions, and to take all action necessary to discharge the obligations of the Company.

14.Non-Solicitation Restriction. Executive hereby agrees that in order to protect Trade Secrets, it is necessary to enter into the following restrictive covenant, which is ancillary to the enforceable promises between the Company and Executive in Sections 9 through 13 and other provisions of this Agreement. During the Executive’s employment and for a period of one (1) year following the Termination Date (regardless of the reason for termination), Executive hereby covenants and agrees that he will not, directly or indirectly, without obtaining the express written consent of the Board, either individually or as a principal, partner, agent, consultant, contractor, employee, or as a director or officer of any entity, or in any other manner or capacity whatsoever, except on behalf of the Company, solicit business, attempt to solicit business, or conduct business, in products or services competitive with any products or services offered or performed by the Company or its Affiliates in any business which the Company or any of its Affiliates does business, prepared to conduct business as of the Termination Date (or if the applicable activity occurs before the Termination, Date, then as of the date on which such activity occurs), or has any business interest within the Restricted Territory as of the Termination Date (or if the applicable activity occurs before the Termination, Date, then as of the date on which such activity occurs), (a) from those individuals or entities with whom the Company or Affiliate conducted or prepared to conduct business in the Restricted Territory during the Executive’s employment with the Company or (b) with respect to any assets or holdings in which the Company or Affiliate had any interest in the Restricted Territory at any time during the two-year period ending on the earlier of the Termination Date or the date on which such activity occurs.  

15.Non-Competition Restriction. Executive hereby agrees that in order to protect Trade Secrets, it is necessary to enter into the following restrictive covenant, which is ancillary to the enforceable promises between the Company and Executive in Sections 9 through 14 and other provisions of this Agreement. Executive hereby covenants and agrees that during Executive’s period of employment with the Company or its Affiliates, and for a period of one (1) year following the Termination Date (regardless of the reason for termination), Executive will not, without obtaining the express written consent of the Company, engage in any capacity, directly or indirectly (whether as proprietor, stockholder, director, partner, employee, agent, independent contractor, consultant, trustee, or in any other capacity), with respect to any entity engaged or preparing to engage in the business of oil and gas exploration and production, the acquisition, development or operation of Midstream Assets or any other aspect of the Company’s or an Affiliate’s business, in each case, within the Restricted Territory (a “Competing Enterprise”); provided, however, Executive shall not be deemed to be participating or engaging in a Competing Enterprise solely by virtue of the ownership 

of not more than one percent (1%) of any class of stock or other securities which are publicly traded on a national securities exchange or in a recognized over-the-counter market.

16.No Recruitment Restriction. Executive agrees that during Executive’s period of employment with the Company or its Affiliates, and for a period of one (1) year following the Termination Date (regardless of the reason for termination), without obtaining the express written consent of the Company, Executive shall not, either directly or indirectly, or by acting in concert with another person or entity, (a) hire any employee or independent contractor performing services for the Company or any Affiliate, or any such individual who performed services for the Company or any Affiliate at any time during the one-year period ending on the earlier of the Termination Date or the date on which such hiring occurs, or (b) solicit or influence or seek to solicit or influence, any employee or independent contractor performing services for the Company or any Affiliate, or any such individual who performed services for the Company or any Affiliate at any time during the one-year period ending on the earlier of the Termination Date or the date on which such activity occurs, to terminate, reduce or otherwise adversely affect such individual’s employment or other relationship with the Company or any Affiliate.  Notwithstanding the foregoing, Executive shall not be prohibited from hiring an independent contractor to the extent (i) such contractor is not working full-time for the Company or any Affiliate and (ii) such hiring does not interfere with the contractor’s performance of services for the Company or any Affiliate.

17.Business Opportunities. During Executive’s period of employment with the Company or its Affiliates and for a period of one (1) year following the Termination Date (regardless of the reason for termination), the Executive assigns and agrees to assign without further compensation to the Company, its Affiliates and its successors, assigns or designees, all of the Executive’s right, title and interest in and to all Business Opportunities (defined below), and further acknowledges and agrees that all Business Opportunities constitute the exclusive property of the Company. The Executive shall present all Business Opportunities to the Company, and shall not exploit a Business Opportunity. For purposes of this Agreement, “Business Opportunities” means all business ideas, prospects, or proposals pertaining to oil and gas exploration and production, the acquisition, development or operation of Midstream Assets or any other aspect of the Company’s or an Affiliate’s business, and any business the Company or any Affiliate prepared to conduct, or contemplated conducting during Executive’s employment with the Company, which are developed by the Executive or originated by any third party and brought to the attention of the Executive, together with information relating thereto; provided however, that for the one (1) year period following the Termination Date, “Business Opportunities” shall be limited to those Business Opportunities in the Restricted Territory as such area is defined on the Termination Date. For the avoidance of doubt, this Section 17 is not intended to limit or narrow the Executive’s duties or obligations under federal or state law with respect to corporate opportunities.

18.Tolling. If Executive violates any of the restrictions contained in Sections 9 through 17, then notwithstanding any provision hereof to the contrary, the restrictive period will be suspended and will not run in favor of Executive from the time of the commencement of any such violation, unless and until such time when the Executive cures the violation to the reasonable satisfaction of the Company.

19.Reformation. If a court or arbitrator rules that any time period or the geographic area specified in any restrictive covenant in Sections 9 through 17 is unenforceable, then the time period will be reduced by the number of months, or the geographic area will be reduced by the elimination of such unenforceable portion, or both, so that the restrictions may be enforced in the geographic area and for the time to the full extent permitted by law.

20.No Previous Restrictive Agreements. Executive represents that, except as disclosed in writing to the Company as of the Effective Date, Executive is not bound by the terms of any agreement with any previous employer or other third party to (a) refrain from using or disclosing any confidential or proprietary information in the course of Executive’s employment by the Company or (b) refrain from competing, directly or indirectly, with the business of such previous employer or any other person or entity. Executive further represents that Executive’s performance under this Agreement and work duties for the Company do not, and will not, breach any agreement to keep in confidence any proprietary information, knowledge or data acquired by Executive in confidence or in trust prior to Executive’s employment with the Company, and Executive will not disclose to the Company or induce the Company to use any confidential or proprietary information or material belonging to any previous employer or others.

21.Conflicts of Interest. In keeping with Executive’s fiduciary duties to the Company, Executive hereby agrees that Executive shall not become involved in a conflict of interest, or upon discovery thereof, allow such a conflict to continue at any time during Executive’s period of employment with the Company or its Affiliates. In this respect, Executive agrees to fully comply with the conflict of interest agreement entered into by Executive as an employee, officer or director of the Company or an Affiliate. In the instance of a violation of the conflict of interest agreement to which Executive is a party, it may be necessary for the Company to terminate Executive’s employment for Cause.

22.Remedies. Executive acknowledges that the restrictions contained in Sections 9 through 21 of this Agreement, in view of the nature of the Company’s business, are reasonable and necessary to protect the Company’s legitimate business interests, and that any violation of this Agreement would result in irreparable injury to the Company. Notwithstanding the arbitration provisions in Section 31, in the event of a breach or a threatened breach by Executive of any provision of Sections 9 through 21 of this Agreement, the Company shall be entitled to a temporary restraining order and injunctive relief restraining Executive from the commission of any breach, and to recover the Company’s attorneys’ fees, costs and expenses related to the breach or threatened breach. Nothing contained in this Agreement shall be construed as prohibiting the Company from pursuing any other remedies available to it for any such breach or threatened breach, including, without limitation, the recovery of money damages, attorneys’ fees, and costs. These covenants and agreements shall each be construed as independent of any other provisions in this Agreement, and the existence of any claim or cause of action by Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of such covenants and agreements.

23.No Interference. Notwithstanding any other provision of this Agreement, (a) Executive may disclose confidential information when required to do so by a court of competent jurisdiction, by any governmental agency having authority over Executive or the business of the Company or by any administrative body or legislative body (including a committee thereof) with jurisdiction to order Executive to divulge, disclose or make accessible such information, in each case, subject to Executive’s obligations to notify the Company under Section 10(b); and (b) nothing in this Agreement is intended to interfere with Executive’s right to (1) report possible violations of state or federal law or regulation to any governmental or law enforcement agency or entity; (2) make other disclosures that are protected under the whistleblower provisions of state or federal law or regulation (including the right to receive an award for information provided to any such government agencies); (3) file a claim or charge any governmental agency or entity; or (4) testify, assist, or participate in an investigation, hearing, or proceeding conducted by any governmental or law enforcement agency or entity, or any court. For purposes of clarity, in making or initiating any such reports or disclosures or engaging in any of the conduct outlined in subsection (b) above, Executive may disclose confidential information to the extent necessary to such governmental or law enforcement agency or entity or such court, need not seek prior authorization from the Company, and is not required to notify the Company of any such reports, disclosures or conduct.

24.Defend Trade Secrets Act. Executive is hereby notified in accordance with the Defend Trade Secrets Act of 2016 that Executive will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (a) is made (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (2) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If Executive files a lawsuit for retaliation against the Company for reporting a suspected violation of law, Executive may disclose the Company’s trade secrets to Executive’s attorney and use the trade secret information in the court proceeding if Executive files any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant to court order.

25.Withholdings; Right of Offset. The Company may withhold and deduct from any benefits and payments made or to be made pursuant to this Agreement (a) all federal, state, local and other taxes as may be required pursuant to any law or governmental regulation or ruling, (b) all other normal employee deductions made with respect to Company’s employees generally, and (c) any advances made to Executive and owed to Company.

26.Nonalienation. Subject to Section 37, the right to receive payments under this Agreement shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge or encumbrance by Executive, dependents or beneficiaries of Executive, or to any other person who is or may become entitled to receive such payments hereunder. The right to receive payments hereunder shall not be subject to or liable for the debts, contracts, liabilities, engagements or torts of any person who is or may become entitled to receive such payments, nor may the same be subject to attachment or seizure by any creditor of such person under any circumstances, and any such attempted attachment or seizure shall be void and of no force and effect.

27.Incompetent or Minor Payees. Should the Company determine, in its discretion, that any person to whom any payment is payable under this Agreement has been determined to be legally incompetent or is a minor, any payment due hereunder, notwithstanding any other provision of this Agreement to the contrary, may be made in any one or more of the following ways: (a) directly to such minor or person; (b) to the legal guardian or other duly appointed personal representative of the person or estate of such minor or person; or (c) to such adult or adults as have, in the good faith knowledge of the Company, assumed custody and support of such minor or person; and any payment so made shall constitute full and complete discharge of any liability under this Agreement in respect to the amount paid.

28.Severability. It is the desire of the Parties hereto that this Agreement be enforced to the maximum extent permitted by law, and should any provision contained herein be held unenforceable by a court of competent jurisdiction or arbitrator (pursuant to Section 31), the Parties hereby agree and consent that such provision shall be reformed to create a valid and enforceable provision to the maximum extent permitted by law; provided, however, if such provision cannot be reformed, it shall be deemed 

ineffective and deleted herefrom without affecting any other provision of this Agreement. This Agreement should be construed by limiting and reducing it only to the minimum extent necessary to be enforceable under then applicable law.

29.Title and Headings; Construction
. In the interpretation of the Agreement, except where the context clearly otherwise requires:
(a)“including” or “include” does not denote or imply any limitation;

(b)“or” has the inclusive meaning “and/or”;

(c)the singular includes the plural, and vice versa, and each gender includes each of the others;

(d)captions or headings are only for reference and are not to be considered in interpreting the Agreement;

(e)“Section” refers to a Section of the Agreement, unless otherwise stated in the Agreement;

(f)the words “herein”, “hereof”, “hereunder” and other compounds of the word “here” shall refer to the entire Agreement and not to any particular provision; and

(g)a reference to any statute, rule, or regulation includes any amendment thereto or any statute, rule, or regulation enacted or promulgated in replacement thereof or as the successor thereto.

30.Governing Law; Jurisdiction. All matters or issues relating to the interpretation, construction, validity, and enforcement of this Agreement shall be governed by the laws of the State of Texas, without giving effect to any choice-of-law principle that would cause the application of the laws of any jurisdiction other than Texas. Jurisdiction and venue of any action or proceeding relating to this Agreement or any Dispute (to the extent arbitration is not required under Section 31) shall be exclusively in Harris County, Texas.
31.Mandatory Arbitration. Except as provided in subsection (h) of this Section 31, any Dispute must be resolved by binding arbitration in accordance with the following:

(a)Either Party may begin arbitration by filing a demand for arbitration in accordance with the Commercial Arbitration Rules of the AAA (the “Arbitration Rules”) and concurrently notifying the other Party of that demand. If the Parties are unable to agree upon a panel of three neutral arbitrators within twenty days after the demand for arbitration was filed (the Parties agree to a reasonable, one-time extension of that twenty-day period), either Party may request the Houston, Texas office of the American Arbitration Association (“AAA”) to appoint the arbitrator or arbitrators necessary to complete the panel in accordance with the Arbitration Rules. Each arbitrator so appointed shall be deemed accepted by the Parties as part of the panel. Notwithstanding the foregoing, the Parties, by mutual consent, may agree to a single arbitrator instead of a panel of three arbitrators and, in such event, references herein to “panel” shall refer to the single appointed arbitrator.

(b)The arbitration shall be conducted in the Houston, Texas metropolitan area at a place and time agreed upon by the Parties with the panel, or if the Parties cannot agree, as designated by the panel. The panel may, however, call and conduct hearings and meetings at such other places as the Parties may agree or as the panel may, on the motion of one Party, determine to be necessary to obtain significant testimony or evidence.

(c)The panel may authorize any and all forms of discovery upon a Party’s showing of need that the requested discovery is likely to lead to material evidence needed to resolve the Dispute and is not excessive in scope, timing, or cost.

(d)The arbitration shall be subject to the Federal Arbitration Act and conducted in accordance with the Arbitration Rules to the extent that they do not conflict with this Section  31. The Parties and the panel may, however, agree to vary to provisions of this Section 31 or the matters otherwise governed by the Arbitration Rules as permitted by law.

(e)The arbitration hearing shall be held within 60 days after the appointment of the panel. The panel’s final decision or award shall be made within 30 days after the hearing. That final decision or award shall be made by unanimous or majority vote or consent of the arbitrators constituting the panel, and shall be deemed issued at the place of arbitration. The panel’s final decision or award shall be based on the terms and conditions of this Agreement and applicable law.
(f)The panel’s final decision or award may include injunctive relief in response to any actual or impending breach of this Agreement or any other actual or impending action or omission of a Party under or in connection with this Agreement.

(g)The panel’s final decision or award shall be final and binding upon the Parties, and judgment upon that decision or award may be entered in any court having jurisdiction. The Parties waive any right to apply or appeal to any court for relief from the preceding sentence or from any decision of the panel that is made before the final decision or award.

(h)Nothing in this Section 31 limits the right of either Party to apply to a court having jurisdiction to (i) enforce the agreement to arbitrate in accordance with this Section 31, (ii) seek provisional or temporary injunctive relief, in response to an actual or impending breach of the Agreement or otherwise so as to avoid an irreparable damage or maintain the status quo, until a final arbitration decision or award is rendered or the Dispute is otherwise resolved, or challenge or vacate any final arbitration decision or award that does not comply with this Section  31. In addition, nothing in this Section 31 prohibits the Parties from resolving any Dispute (in whole or in part) at any time by mutual agreement or compromise. This Section 31 shall also not preclude the Parties at any time from mutually agreeing to pursue non-binding mediation of the Dispute.

(i)The panel may proceed to an award notwithstanding the failure of any Party to participate in such proceedings. The prevailing Party in the arbitration proceeding may be entitled to an award of reasonable attorneys’ fees incurred in connection with the arbitration in such amount, if any, as determined by the panel in its discretion. The costs of the arbitration shall be borne equally by the Parties unless otherwise determined by the panel in its award.

(j)The panel shall be empowered to impose sanctions and to take such other actions as it deems necessary to the same extent a judge could impose sanctions or take such other actions pursuant to the Federal Rules of Civil Procedure and applicable law. Each Party agrees to keep all Disputes and arbitration proceedings strictly confidential except for disclosure of information required by applicable law which cannot be waived.

32.Binding Effect; Third Party Beneficiaries. Subject to Section 37, this Agreement shall be binding upon and inure to the benefit of the Parties hereto, and to their respective heirs, executors, beneficiaries, personal representatives, successors and permitted assigns hereunder; otherwise this Agreement shall not be for the benefit of any third parties.

33.Entire Agreement; Amendment and Termination. This Agreement contains the entire agreement of the Parties hereto with respect to the matters covered herein; moreover, this Agreement supersedes all prior and contemporaneous agreements and understandings, oral or written, between the Parties concerning the subject matter hereof.  This Agreement may be amended, waived or terminated only by a written instrument that is identified as an amendment, waiver or termination hereto, and is executed on behalf of both Parties. Executive hereby acknowledges and represents that in executing this Agreement, he did not rely on, has not relied on, and specifically disavows any reliance on any communications, promises, statements, inducements, or representation(s), oral or written, by the Company, except as expressly contained in this Agreement. The Parties represent that they relied on their own judgment in entering into this Agreement.

34.Section 409A.

(a)General. Any provisions of the Agreement that are subject to Section 409A of the Code and the regulations and other authoritative guidance issued thereunder (“Section 409A”), are intended to comply with all applicable requirements of Section 409A, or an exemption from the application of Section 409A, and shall be interpreted and administered accordingly. Notwithstanding any provision of this Agreement to the contrary, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amount or benefit that constitutes “non-qualified deferred compensation” (within the meaning of Section 409A) upon or following a termination of the Executive’s employment unless such termination is also a “separation from service” (as defined under Section 409A) (a “Separation from Service”) and, for purposes of any such provision, references herein to a “termination,” “termination of employment” or like terms shall mean a Separation from Service, if applicable. Each payment under this Agreement shall be treated as a separate payment for purposes of Section 409A. In no event may the Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement.

(b)Specified Employee. Notwithstanding any provision of this Agreement to the contrary, if any payment or other benefit provided hereunder would be subject to additional taxes and interest under Section 409A because the timing of such payment is not delayed as required by Section 409A for a “specified employee” (as defined under Section 409A), then if the Executive is on the date of Executive’s Separation from Service a specified employee, any such payment or benefit that Executive would otherwise be entitled to receive during the first six months following the Separation from Service shall be accumulated and paid in a lump sum within ten (10) days after the date that is six months following the date of the Separation from Service, or such earlier date upon which such amount can be paid under Section 409A without being subject to such additional taxes and interest such as, for example, upon the Executive’s death. Any remaining payments due to Executive under this Agreement shall be paid as otherwise provided in this Agreement.

(c)Reimbursements and In-Kind Benefits. Notwithstanding any provision of this Agreement to the contrary, any reimbursements or in-kind benefits provided under this Agreement that constitute “nonqualified deferred compensation” within the meaning of Section 409A shall be paid to Executive no later than December 31 of the year following the year in which the expense was incurred, the amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year, other than medical expenses referred to in Section 105(b) of the Code, and Executive’s right to reimbursement under this Agreement will not be subject to liquidation or exchange for other benefits.

(d)No Section 409A Representations. Notwithstanding the foregoing, the Company makes no representations, warranties, or guarantees regarding the tax consequences of this Agreement, or any payments made hereunder, under Section 409A or otherwise, and has advised the Executive to consult with Executive’s own tax advisor.

35.Survival of Certain Provisions. Provisions of this Agreement which by their terms must survive the termination of this Agreement shall survive any such termination or expiration of this Agreement or termination of Executive’s employment, as applicable, including, without limitation, Executive’s obligations under Sections 9 through 18 and the Company’s obligations under Section 6.

36.Waiver of Breach. No waiver by any party hereto of a breach of any provision of this Agreement by any other party, or of compliance with any condition or provision of this Agreement to be performed by such other party, will operate or be construed as a waiver of any subsequent breach by such other party or any similar or dissimilar provision or condition at the same or any subsequent time. The failure of any party hereto to take any action by reason of any breach will not deprive such party of the right to take action at any time while such breach continues.

37.Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Company and its Affiliates (and its and their successors), as well as upon any person or entity acquiring, whether by merger, consolidation, purchase of assets, dissolution or otherwise, all or substantially all of the capital stock, business and/or assets of the Company (or its successor) regardless of whether the Company is the surviving or resulting entity. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation, dissolution or otherwise) to all or substantially all of the capital stock, business or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had occurred; provided, however, no such assumption shall relieve the Company or any of its Affiliates (or any successor thereof) of any of its duties or obligations hereunder unless otherwise agreed, in writing, by Executive.

This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representative, executors, administrators, successors, and heirs. In the event of the death of Executive while any amount is payable hereunder, all such amounts shall be paid to the Designated Beneficiary.
38.Notice. Each notice or other communication required or permitted under this Agreement shall be in writing and transmitted, delivered, or sent by personal delivery, prepaid courier or messenger service (whether overnight or same-day), or prepaid certified United States mail (with return receipt requested), addressed (in any case) to the other party at the address for that party set forth below that party’s signature on this Agreement, or at such other address as the recipient has designated by Notice to the other party, by electronic mail, delivery and read receipt required, or by facsimile, confirmation of delivery required.

Each notice or communication so transmitted, delivered, or sent (a) in person, by courier or messenger service, or by certified United States mail shall be deemed given, received, and effective on the date delivered to or refused by the intended recipient (with the return receipt, or the equivalent record of the courier or messenger, being deemed conclusive evidence of delivery or refusal), or (b) by telecopy or facsimile shall be deemed given received) and effective on the date of actual receipt (with the confirmation of transmission being deemed conclusive evidence of receipt, except where the intended recipient has promptly notified the other party that the transmission is illegible). Nevertheless, if the date of delivery or transmission is not a business day, or if the delivery or transmission is after 5:00 p.m. (local time) on a business day, the notice or other communication shall be deemed given, received, and effective on the next business day.
39.Executive Acknowledgment. Executive acknowledges (a) being knowledgeable and sophisticated as to business matters, including the subject matter of this Agreement, (b) having read this Agreement and understanding its terms and conditions, (c) having been given an ample opportunity to discuss this Agreement with his personal legal counsel prior to execution, and (d) that no strict rules of construction shall apply for or against the drafter or any other party. Executive hereby represents that he is free to enter into this Agreement including, without limitation, that he is not subject to any covenant not to compete, confidentiality agreement or other restrictive agreement or covenant, with former employer or otherwise, that could conflict with this Agreement or his duties hereunder.

40.Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of a copy hereof containing multiple signature pages, each signed by one party hereto, but together signed by both Parties.

41.Parent Acknowledgment and Guarantee.  Alta Mesa is the direct or indirect parent of the Company. Alta Mesa hereby unconditionally guarantees full and timely performance of the obligations of the Company and its Affiliates under this Agreement.  The foregoing guarantee shall include the guarantee of the payment of all benefits and payments due Executive hereunder as a result of the nonperformance of any of such obligations or agreements so guaranteed or as a result of the nonperformance of this guarantee.  Executive may, at his option, proceed against Alta Mesa for damages for default in the performance thereof, without first proceeding against the Company or against any of its properties or Affiliates.  Alta Mesa further agrees that its guarantee shall be an irrevocable guarantee and shall continue in effect notwithstanding any extension or modification of any guaranteed obligation, any assumption of any such guaranteed obligation by any other party, or any other act or thing which might otherwise operate as a legal or equitable discharge of a guarantor, and Alta Mesa hereby waives all special suretyship defenses and notice requirements. This guarantee shall also be binding upon all successors and assigns of all of substantially all of the business or assets of Alta Mesa.  Section 31 shall apply to Disputes between Alta Mesa and Executive mutatis mutandis.
[Signature pages follow.]
IN WITNESS WHEREOF, Executive has executed this Agreement, the Company has caused this Agreement to be executed in its name and on its behalf by its duly authorized officer, and Alta Mesa has caused this Agreement to be executed in its name and on its behalf by its duly authorized officer solely for purposes of Section 41 of the Agreement, to be effective as of the Effective Date.
EXECUTIVE:

________________________________________
[insert name]

Address for Notices:

Most recent mailing address for Executive in the Company’s personnel files

[Signature pages continue.]

COMPANY:

ALTA MESA SERVICES, LP, a Texas limited partnership 
		
	By:
	OEM GP, LLC, 

a Texas limited liability company 
its general partner

		
	By:
	Alta Mesa Holdings, LP,

a Texas limited partnership
its sole member

		
	By:
	Alta Mesa Holdings GP, LLC

a Texas limited liability company
its general partner

		
	By:
	_________________________________

		
	Name:
	Harlan H. Chappelle

		
	Title:
	Chief Executive Officer

Address for Notices:

OEM GP, LLC
c/o Alta Mesa Resources, Inc.
15021 Katy Freeway, Suite 400
Houston, TX 77094

Attn: Chief Executive Officer

[Signature pages continue.]

Solely for purposes of Section 41 of the Agreement:

ALTA MESA HOLDINGS, LP, a Texas limited partnership 

		
	By:
	Alta Mesa Holdings GP, LLC

a Delaware limited liability company
its general partner

		
	By:
	_________________________________

		
	Name:
	Harlan H. Chappelle, 

		
	Title:
	Chief Executive Officer

Address for Notices:

Alta Mesa Holdings, LP
c/o Alta Mesa Resources, Inc.
15021 Katy Freeway, Suite 400
Houston, TX 77094

Attn: Chief Executive Officer 

[End of Signatures.]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00299-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00299-of-00352.parquet"}]]