Document:

exv10w5

Exhibit 10.5

THIRD AMENDMENT TO FORBEARANCE AND AMENDMENT AGREEMENT

     THIS THIRD AMENDMENT TO FORBEARANCE AND AMENDMENT AGREEMENT (this “Third Amendment”)
is made as of December 21, 2009, by and among TMR DRILLING CORPORATION, a Texas corporation (the
“Borrower”), THE MERIDIAN RESOURCE CORPORATION, a Texas corporation (“Meridian”),
THE MERIDIAN RESOURCE & EXPLORATION LLC, a Delaware limited liability company (“TMR
Exploration,” and collectively with the Borrower and Meridian, the “CIT Credit
Parties”) and THE CIT GROUP/EQUIPMENT FINANCING, INC. (“CIT”), in its capacity as
Administrative Agent and Lender under the CIT Credit Agreement (as defined below).

R E C I T A L S:

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

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

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

     WHEREAS, the Borrower has requested that CIT further extend the Forbearance Period under the
CIT Forbearance Agreement, and CIT has agreed to do so under the terms and conditions set forth in
this Third Amendment.

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

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

     2. Amendment to the CIT Forbearance Agreement. CIT and the CIT Credit Parties agree
that clause (i) of Section 2(a) of the CIT Forbearance Agreement is amended and restated in
its entirety as follows:

     “(i) 5:00 p.m. (Central Time) on December 28, 2009; or ...”.

 

 

     3. Ratifications, Representations and Warranties.

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

     (b) General Representations and Warranties. Each CIT Credit Party hereby
jointly and severally represents and warrants to CIT that (i) the execution, delivery and
performance of this Third Amendment has been duly authorized by all requisite organizational
action on the part of such CIT Credit Party and will not violate the constituent
organizational documents of such CIT Credit Party, contravene any contractual restriction,
any law, rule or regulation or court or administrative decree or order binding on or
affecting such CIT Credit Party or result in, or require the creation or imposition of any
lien, security interest or encumbrance on any of the properties of such CIT Credit Party;
(ii) this Third Amendment has been duly executed and delivered by each CIT Credit Party and
is the legal, valid and binding obligation of each CIT Credit Party, enforceable in
accordance with its terms; (iii) subject to the existence of the Designated Events of
Default, the representations and warranties contained in the CIT Credit Agreement and any
Loan Document are true and correct on and as of the date hereof and on and as of the date of
execution hereof as though made on and as of each such date; (iv) except for the Designated
Events of Default, no Default or Event of Default under the CIT Credit Agreement has
occurred and is continuing; (v) except for the Designated Events of Default, such CIT Credit
Party is in full compliance with all covenants and agreements contained in the Loan
Documents; and (vi) absent the effectiveness of this Third Amendment, CIT is entitled to
exercise immediately its rights and remedies under the Loan Documents, including, but not
limited to, the right to accelerate the maturity of the Obligations and enforce their rights
and remedies under the Collateral Documents.

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

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

     (a) An executed copy of this Third Amendment; and

 

 

     (b) Evidence satisfactory to CIT that the Bank Group Forbearance Agreement has been
extended through December 28, 2009.

     5. Miscellaneous Provisions.

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

     (b) Effect of This Third Amendment. Except as otherwise expressly stated
herein, the CIT Forbearance Agreement, the CIT Credit Agreement and the other Loan Documents
remain in full force and effect in accordance with their terms, as amended hereby. From and
after the date hereof, the CIT Forbearance Agreement is deemed to be the CIT Forbearance
Agreement, as amended hereby, and the parties agree that each of the terms of the CIT
Forbearance Agreement will be strictly adhered to on and after the date hereof, except as
expressly modified by this Third Amendment.

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

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

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

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

 

 

AMENDMENT OF ANY PROVISION OF THIS AMENDMENT SHALL BE MADE, EXCEPT BY A WRITTEN
AGREEMENT SIGNED BY EACH CIT CREDIT PARTY AND CIT.

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

	 	 	 	 	 
	 	THE CIT CREDIT PARTIES:

THE MERIDIAN RESOURCE CORPORATION

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

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

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

THE CIT GROUP/EQUIPMENT FINANCING, INC.

 	 
	 
	 	By:  	/s/ C. Graham Sones
 	 
	 	 	Name:  	C. Graham Sones 	 
	 	 	Title:  	Directorexv10w6

Exhibit 10.6

OMNIBUS AGREEMENT RELATING TO ASSIGNED INTERESTS

     This Omnibus Agreement Relating to Assigned Interests (hereafter “Agreement”) is made by and
among the parties listed in subsection (1) below, on the one hand, and the parties listed in
subsection (2) below, on the other, effective this 22nd day of December 2009 (the “Effective
Date”):

	 	(1)	 	Joseph A. Reeves, Jr. (“Reeves”), a person of full age of majority with a
mailing address at 11211 Wilding Lane, Houston, Texas 77024; Texas Oil Distribution &
Development, Inc. (“TODD”), a Texas corporation with the same mailing address; and JAR
Resource Holdings, LLP (“JAR”), a Texas limited liability partnership with the same
mailing address (TODD, JAR and Reeves being sometimes referred to below collectively as
“Reeves Parties”); and
	 
	 	(2)	 	The Meridian Resource Corporation (“TMR”), a Texas corporation with a mailing
address at 1401 Enclave Parkway, Suite 300, Houston, Texas 77077; The Meridian Resource
& Exploration LLC (“TMRX”), a Delaware limited liability company with the same mailing
address; Louisiana Onshore Properties LLC (“LOPI”), a Delaware limited liability
company with the same mailing address and formerly known as Louisiana Onshore
Properties Inc. before its conversion from a Delaware corporation to a Delaware limited
liability company; and Cairn Energy USA, Inc. (“Cairn”), a Delaware corporation with
the same mailing address (TMR, TMRX, LOPI, and Cairn being sometimes referred to below
collectively as “Meridian Parties”).

The above named parties to this Agreement are sometimes referred to below as a “Party” in the
singular and as “Parties” in the plural.

Recitals

     WHEREAS TODD and TMRX (then known as Texas Meridian Resources Exploration, Inc.) entered into
that certain letter agreement dated July 15, 1996 (the “Letter Agreement”), an accurate copy of
which (with exhibits) is attached hereto as Exhibit 1(A); and

     WHEREAS the Letter Agreement provides TODD the right to participate in certain “Prospects” (as
defined therein) acquired by TMRX, under the terms and conditions specified in the Letter
Agreement; and

     WHEREAS the Letter Agreement utilizes the form Master Participation Agreement attached as
Exhibit 1 to the Letter Agreement (the “Form MPA”) to govern Prospects in which TODD elects to
participate under the Letter Agreement (each, an “MPA”); and

     WHEREAS although JAR is not a signatory to the Letter Agreement or any MPA, JAR has been
assigned interests in certain wells subject to the Letter Agreement by TODD and by Meridian Parties
at TODD’s request; and

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     WHEREAS Reeves and TMR (then known as Texas Meridian Resources Corporation) entered into an
Agreement dated June 27, 1995 but effective January 1, 1994 (the “Original NPI Agreement”), an
accurate copy of which is attached as Exhibit 1(B); and

     WHEREAS the Original NPI Agreement provided for assignment of certain net profits interests
(“Net Profit Interests” or “NPIs”) to Reeves, in the manner and under the terms and conditions of
the said Original NPI Agreement; and

     WHEREAS the Original NPI Agreement was amended by that certain Amendment to Agreement dated
June 27, 1995 (the “NPI Amendment”), an accurate copy of which is attached as Exhibit 1(C); and

     WHEREAS Reeves and TMR entered into a Termination Agreement as of April 29, 2008 relating to
the Original NPI Agreement (the “Termination Agreement”), an accurate copy of which is attached as
Exhibit 1(D); and

     WHEREAS certain questions and disagreements have arisen between the Reeves Parties and the
Meridian Parties as to the effect and/or interpretation of certain provisions of the Letter
Agreement, Original NPI Agreement, as amended by the NPI Amendment (collectively, the “NPI
Agreement”) Termination Agreement, and the interests assigned or owed to the Reeves Parties under
the terms of these agreements; and

     WHEREAS contemporaneously herewith and as a material consideration for the execution of this
Agreement, the Parties are executing a Settlement and Release Agreement (the “Settlement
Agreement”); and

     WHEREAS the Parties wish to resolve said questions and disagreements, clarify the effect of
certain provisions in the Letter Agreement and the NPI Agreement, and agree and stipulate with
respect to what interests have been or will be assigned or owed to the Reeves Parties under the
Letter Agreement and NPI Agreement;

Agreements

     NOW, THEREFORE, to resolve potential disputes and questions concerning the agreements
described above, and for other good and valuable cause and consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as follows:

Reeves Net Profits Interests

	1.	 	The “Properties” as defined in Article I of the Original NPI Agreement, and in which any
Meridian Party continues to own any interest, are those lands (a) covered by the mineral
leases identified and/or listed on Exhibit 2(A) attached hereto, and/or (b) situated within
the boundaries of the contract areas outlined in red on the plats attached as Exhibit 2(B) in
globo. These Properties are sometimes hereafter referred to as the “Active NPI Lands.”
	 
	2.	 	The “Properties” as defined in Article I of the Original NPI in which a Meridian Party owned
an interest within the three years prior to the effective date of this Agreement, but no
longer owns such interest, are those lands (a) covered by the mineral leases identified and/or
listed

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	 	 	on Exhibit 3(A) and/or (b) situated within the boundaries of the contract areas outlined in red
on the plats attached as Exhibit 3(B) in globo. These Properties are sometimes hereafter
referred to as “Suspended NPI Lands.”
	 
	3.	 	Exhibit 4 attached hereto sets forth Reeves’s NPIs with respect to all wells identified
thereon. The Meridian Parties represent and agree that, to the best of their knowledge and
information, written documents reflecting the assignment of these interests have been filed in
the public records in the counties or parishes where the properties subject to the NPIs are
located. The Meridian Parties further agree that any such assignments that have not, as of
yet, been executed and/or filed in those said counties or parishes will be executed and
delivered to Reeves by the appropriate Meridian Party within the sooner of 10 business days of
request by a Reeves Party or the sale, assignment, or conveyance of any property, interest, or
asset to which such NPI interest may apply and will be filed in those said counties or
parishes by a Meridian Party within 10 business days after receipt from Reeves of fully
executed originals thereof.
	 
	4.	 	Reeves is entitled to an NPI under the NPI Agreement with respect to any well drilled in the
future in the Active NPI Lands and Suspended NPI Lands, and/or any Property (as defined in
Article I of the Original NPI Agreement) identified within the Active NPI Lands and Suspended
NPI Lands, until termination of the NPI in accordance with the Original NPI Agreement as
clarified in Paragraph 6 below.
	 
	5.	 	Reeves is not entitled to any NPI, or an assignment of any NPI, from the Meridian Parties (or
any AFFILIATE thereof as defined in the NPI Agreement) in any lands not situated within the
Active NPI Lands and/or the Suspended NPI Lands.
	 
	6.	 	In clarification of Articles IV(G) and VIII(A) of the Original NPI Agreement, the Parties
recognize and agree that if a Meridian Party hereafter sells, assigns, or conveys all of its
interests in a mineral right, interest, or lease subject to a Reeves NPI as contemplated in
Article IV(G) of the Original NPI Agreement, (a) the sale or assignment shall be made subject
to the NPI and the said NPI shall not expire or be extinguished prior to, but shall expire and
be extinguished upon, expiration or termination of the mineral right, interest, or lease and
(b) Reeves shall retain the right under the NPI Agreement to obtain a further NPI in the event
a Meridian Party acquires any further Mineral Interest (as defined in the NPI Agreement)
within the same applicable Active NPI Lands or Suspended NPI Lands within three years after
such sale, assignment or conveyance by such Meridian Party. The Parties further recognize and
agree that if Reeves has an NPI in Louisiana fee lands owned by any Meridian Party, any sale
or conveyance of all or any portion of said fee land by a Meridian Party shall be made
expressly subject to Reeves’s NPI, and as to the vendee the duration and continuance of
Reeve’s NPI thereafter shall be governed by the terms of Louisiana law including the Louisiana
Mineral Code.

TODD Interests

	7.	 	An MPA exists in accordance with the Letter Agreement and its attachments between Meridian
and TODD as to each of those prospects identified and listed in Exhibit 5 (hereafter referred
to as the “Active MPA Prospects”). The said Active MPA Prospects are also

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	 	 	defined as those lands situated within the boundaries of the contract areas outlined in red on
the plats attached as Exhibit 6 in globo (hereafter as the “MPA Lands”). TODD has the right to
participate in wells drilled in the future in the said active MPA Prospects and on the MPA
Lands, in accordance with the provisions of the Letter Agreement, its attachments, and any
applicable MPAs, Form JOAs (as defined below) and Third Party Operating Agreements (as defined
below).
	 
	8.	 	Exhibit 7 sets forth and describes TODD’s gross working interests and net revenue interests
with respect to each well listed and identified thereon. Within 10 business days of a request
by a Reeves Party, the appropriate Meridian Parties will execute and deliver to TODD any
assignment necessary to reflect said interest in the appropriate public records and will file
same within 10 business days after receipt from TODD of fully executed originals thereof.
	 
	9.	 	TODD is not entitled to any interest, or an assignment of any interest, from any Meridian
Party in any lands not situated within the MPA Lands.

JAR’s Interests

	10.	 	All of JAR’s interests in any Active MPAs were acquired by assignment from TODD or a Meridian
Party.
	 
	11.	 	Attached Exhibit 8 sets forth JAR’s gross working interests and net revenue interests in the
wells listed therein. Within 10 business days of a request from any Reeves Party, the
appropriate Meridian Parties will execute and deliver to JAR any assignment necessary to
reflect said interest in the appropriate public records and will file same within 10 business
days after receipt from JAR of fully executed originals thereof.
	 
	12.	 	Except as provided in Paragraph 11 above, JAR is not entitled to any interest, or an
assignment of any interest, from any Meridian Party in any lands not covered by a prior
assignment from TODD or a Meridian Party.

Miscellaneous and General

	13.	 	Any mineral or revenue interest owned by TODD or JAR in an Active MPA is subject to a Form
MPA and subject to the Model Form Operating Agreement (hereafter “Form JOA”) attached to the
Form MPA, except to the extent that the said Active MPA was subject to a “Third Party
Operating Agreement” (meaning an operating agreement other than the Form JOA) prior to the
acquisition of the said interest by TODD or JAR, in which case TODD’s and/or JAR’s interest
shall be governed by the Third Party Operating Agreement. Exhibit 9 sets forth a
non-exclusive list of Third Party Operating Agreements.
	 
	14.	 	The Parties agree that paragraph 7 of the Form MPA and of each and any MPA relating to tax
partnerships is deleted entirely. The Parties further acknowledge that no tax partnerships
were created between any Meridian Party on the one hand and any Reeves Party on the other with
respect to any MPA.
	 
	15.	 	This Agreement and its attached exhibits are intended to clarify the Parties’ rights and
obligations and to resolve uncertainty and eliminate disputes that may develop with respect

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	 	 	to the interpretation, effect, and/or operation of the Letter Agreement, the NPI Agreement, the
Termination Agreement, and all existing and applicable MPAs. This Agreement is not intended as a
novation of any of the said agreements, nor intended to modify, amend, change, or revise any
provision in the said agreements and contracts, as clarified and specified herein and in the
attached Exhibits (including Paragraph 6 above). Other than as expressly provided herein, all
of the terms and provisions of the above-said agreements remain fully in force and effect, other
than the deletion of Paragraph 7 of the Form MPA and MPAs, as provided in Paragraph 14 above.
There are no oral agreements between the Parties. This Agreement along with the Letter
Agreement, Notices issued pursuant to the Letter Agreement, MPAs, Form JOAs, Third Party
Operating Agreements, NPI Agreement, Termination Agreement, the Settlement Agreement and the
assignments executed and/or to be executed under this Agreement, the Letter Agreement, and or
NPI Agreement, are all of the agreements between the Parties.
	 
	16.	 	This Agreement is the result of detailed negotiations between the Parties and all Parties
contributed to the terms and provisions of this Agreement. Accordingly, no provision in this
Agreement shall be interpreted or construed in favor of one Party on grounds the other Party
or Parties authored the provision of the Agreement.
	 
	17.	 	This Agreement shall be binding upon and inure to the Parties and their heirs, successors,
and assigns.
	 
	18.	 	This Agreement may be signed in counterparts, each of which shall be deemed an original and
all of which shall constitute a single agreement.

          [remainder of page intentionally blank; signature pages follow]

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

	 	 	 	 	 	 	 
	WITNESSES to all signatures:	 	 	 	 
	 
	 	 	 	 	 	 
	Signature:	 	/s/ Lloyd DeLano	 	/s/ Joseph A. Reeves, Jr.
	 	 	 	 	 
	Name printed: Lloyd DeLano	 	Joseph A. Reeves, Jr.
	 
	 	 	 	 	 	 
	Signature:	 	/s/ Ethel Pourciaux	 	Texas Oil Distribution & Development, Inc.
	 

	 	 	 	 	 	 
	Name printed: Ethel Pourciaux	 	 	 	 
	 
	 	 	 	 	 	 
	 

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

	 	 	 	 	 	 
	 

	 	 	 	 	 	Joseph A. Reeves, Jr., President
	 
	 	 	 	 	 	 
	 	 	 	 	JAR Resource Holdings, LLC
	 	 	 	 	By JAR Resource Corporation, its general partner
	 
	 	 	 	 	 	 
	 
	 

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

	 	 	 	 	 	 
	 

	 	 	 	 	 	Joseph A. Reeves, Jr., President

Notarial acknowledgment

State of Texas

County of Harris

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

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

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

Notarial Identification Number 00139815-1

My commission expires 11-5-10	 

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

	 	 	 	 	 	 	 
	WITNESSES to all signatures	 	The Meridian Resource Corporation
	 
	 	 	 	 	 	 
	 
	 

	 	 	 	By:
	 	/s/ Paul Ching
	 

	 	 	 	 	 	 
	 

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

	 	/s/ Tiffany Peoples Elder	 	 	 	 
	 

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

	 	 	 	 	 	 
	 

	 	 	 	 	 	Paul Ching, one of its managers
	 
	 	 	 	 	 	 
	 	 	 	 	Louisiana Onshore Properties LLC
	 
	 	 	 	 	 	 
	 
	 

	 	 	 	By:
	 	/s/ Paul Ching
	 

	 	 	 	 	 	 
	 

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

	 	/s/ Ethel Pourciaux	 	 	 	 
	 

	 	 	 	 	 	 
	Name printed: Ethel Pourciaux	 	By:	 	/s/ Paul Ching
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Paul Ching, Chief Executive Officer

Notarial acknowledgment

State of Texas

County of Harris

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

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

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

Notarial Identification Number 00139815-1

My commission expires 11-5-10	 
	 

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